HOME BANCORP, INC. ANNOUNCES 2022 THIRD QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 4%

About this update from Home Bancorp, Inc.

LAFAYETTE, La. , Oct. 18, 2022 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home Bank, N.A . (the "Bank") ( www.home24bank.com ), reported financial results for the third quarter of 2022. For the quarter, the Company reported net income of $10.4 million , or $1.28 per diluted common share ("diluted EPS"), up $2.0 million from $8.5 million , or $1.03 diluted EPS, for the second quarter of 2022. The third and second quarters of 2022 include merger expenses, net of taxes totaling $41,000 and $1.3 million , respectively, related to the acquisition of Friendswood Capital Corporation ("Friendswood"), the former holding company of Texan Bank, N.A. (" Texan Bank ") of Houston, Texas , which was consummated on March 26, 2022 . Income pre-tax, pre-provision and pre-PPP income totaled $14.7 million , up $4.0 million , or 37%, from the prior quarter. "We are excited to report strong earnings and loan growth throughout our footprint for the second consecutive quarter," said John W. Bordelon , President and Chief Executive Officer of the Company and the Bank. "While maintaining a strong credit discipline, the Company's total loans increased on a reported basis 4% from the previous quarter. Excluding PPP loans, total loans increased $83.6 million , or 15% on an annualized basis of which approximately 27% was attributable to the Houston market. We are seeing continuous success attracting new customers throughout our footprint." Third Quarter 2022 Highlights Loans totaled $2.3 billion at September 30, 2022 , up $78.6 million , or 4%, from June 30, 2022 . Excluding PPP loans, total organic loans were up $83.6 million , or 15% annualized, from June 30, 2022 . PPP loans totaled $7.1 million at September 30, 2022 , down $5.0 million , or 41%, from June 30, 2022 . Net interest income totaled $32.0 million , up $2.7 million , or 9% from the prior quarter. Excluding PPP income, net interest income totaled $31.8 million , up $3.0 million , or 10% from the prior quarter. The net interest margin ("NIM") increased 35 basis points from 3.76% for the second quarter of 2022 to 4.11%. Excluding PPP, NIM increased 38 basis points during the third quarter of 2022 to 4.11%. The Company recorded a $1.7 million provision to the allowance for loan losses primarily due to loan growth. The Company repurchased 77,021 shares of its common stock during the third quarter of 2022 at an average price per share of $37.06 . Loans Loans totaled $2.3 billion at September 30, 2022 , up $78.6 million , or 4%, from June 30, 2022 . PPP loans, included in commercial and industrial loans, decreased $5.0 million , or 41%, from June 30, 2022 . The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from June 30, 2022 to September 30, 2022 . (dollars in thousands) 9/30/2022 6/30/2022 Increase (Decrease) Real estate loans: One- to four-family first mortgage $ 376,028 $ 369,410 $ 6,618 2 % Home equity loans and lines 60,624 59,799 825 1 Commercial real estate 1,086,656 1,053,696 32,960 3 Construction and land 328,753 317,351 11,402 4 Multi-family residential 97,212 101,136 (3,924) (4) Total real estate loans 1,949,273 1,901,392 47,881 3 Other loans: Commercial and industrial 320,900 290,157 30,743 11 Consumer 33,106 33,106 — — Total other loans 354,006 323,263 30,743 10 Total loans $ 2,303,279 $ 2,224,655 $ 78,624 4 % The average loan yield was 5.17% for the third quarter of 2022, up 23 basis points from the second quarter of 2022. Commercial real estate, commercial and industrial and construction and land loans were the primary drivers for the loan growth during the third quarter of 2022. Commercial and industrial loan growth for the current quarter was primarily in our Acadiana, Baton Rouge and Mississippi markets. At September 30, 2022 , the growth in commercial real estate and construction loans was primarily within our Houston and New Orleans markets. Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs") totaled $17.5 million , or 0.55% of total assets, at September 30, 2022 , down $1.3 million , or 7%, from $18.8 million , or 0.56% of total assets, at June 30, 2022 . During the third quarter of 2022, the Company recorded net loan charge-offs of $365,000 , compared to net charge-offs of $439,000 during the second quarter of 2022. The Company provisioned $1.7 million to the allowance for loan losses in the third quarter of 2022. At September 30, 2022 , the allowance for loan losses totaled $27.4 million , or 1.19% of total loans, compared to $26.0 million , or 1.17% of total loans, at June 30, 2022 . Excluding PPP loans, the ratios of the allowance for loan losses to total loans were 1.19% and 1.18% at September 30, 2022 and June 30, 2022 , respectively. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, the duration of the health crisis, customer specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors. Deposits Total deposits were $2.7 billion at September 30, 2022 , down $182.0 million , or 6%, from June 30, 2022 . Non-maturity deposits decreased $145.4 million during the third quarter of 2022 to $2.4 billion . The decrease was primarily due to $40.6 million decline in public funds and $53.1 million decline in surge deposits related to three current customers. The following table summarizes the changes in the Company's deposits from June 30, 2022 to September 30, 2022 . (dollars in thousands) 9/30/2022 6/30/2022 Increase (Decrease) Demand deposits $ 921,089 $ 938,531 $ (17,442) (2) % Savings 325,594 316,974 8,620 3 Money market 452,474 483,951 (31,477) (7) NOW 686,592 791,692 (105,100) (13) Certificates of deposit 352,675 389,228 (36,553) (9) Total deposits $ 2,738,424 $ 2,920,376 $ (181,952) (6) % The average rate on interest-bearing deposits increased five basis points from 0.22% for the second quarter of 2022 to 0.27% for the third quarter of 2022. At September 30, 2022 , certificates of deposit maturing within the next 12 months totaled $274.7 million . Net Interest Income The net interest margin ("NIM") increased 35 basis points from 3.76% for the second quarter of 2022 to 4.11% for the third quarter of 2022 primarily due to an increase in the average yield on interest-earning assets, which was partially offset with an increase in the average cost of interest-bearing liabilities. The increase in average cost of interest-bearing liabilities was primarily due to the issuance of subordinated debt on June 30, 2022 . Loan income from the recognition of deferred PPP lender fees totaled $108,000 during the third quarter of 2022, down $262,000 , or 71%, compared to the second quarter of 2022. The average loan yield was 5.17% for the third quarter of 2022, up 23 basis points from the second quarter of 2022. Due to the declining balance of PPP loans, income from PPP loans did not significantly impact the average loan yield or the NIM during the third quarter of 2022. During the second quarter of 2022, PPP loans positively impacted the average loan yield by three basis points and the NIM by three basis points. Average PPP loans were $9.4 million for the third quarter of 2022, down $6.0 million , or 39%, from the second quarter of 2022. Unrecognized PPP lender fees totaled $103,000 at September 30, 2022 . Average other interest-earning assets were $262.1 million for the third quarter of 2022, down $160.1 million , or 38%, from the second quarter of 2022 primarily due to a reallocation of certain other assets to partially fund the increases in loans and investment securities. Loan accretion income from acquired loans totaled $846,000 for the third quarter of 2022, down $33,000 , or 4% from the second quarter of 2022. The following table summarizes the Company's average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated. Taxable equivalent ("TE") yields on investment securities have been calculated using a marginal tax rate of 21%. Quarter Ended 9/30/2022 6/30/2022 (dollars in thousands) Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Interest-earning assets: Loans receivable $ 2,265,846 $ 29,859 5.17 % $ 2,190,721 $ 27,304 4.94 % Investment securities (TE) 532,300 2,958 2.25 475,853 2,338 1.99 Other interest-earning assets 262,127 1,447 2.19 422,265 863 0.82 Total interest-earning assets $ 3,060,273 $ 34,264 4.41 % $ 3,088,839 $ 30,505 3.93 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $ 1,522,350 $ 876 0.23 % $ 1,584,118 $ 673 0.17 % Certificates of deposit 371,925 394 0.42 406,367 430 0.42 Total interest-bearing deposits 1,894,275 1,270 0.27 1,990,485 1,103 0.22 Other borrowings 5,539 53 3.80 5,794 54 3.71 Subordinated debt $ 53,943 $ 859 6.32 % 774 — — FHLB advances 24,977 105 1.68 25,426 107 1.69 Total interest-bearing liabilities $ 1,978,734 $ 2,287 0.46 % $ 2,022,479 $ 1,264 0.25 % Net interest spread (TE) 3.95 % 3.68 % Net interest margin (TE) 4.11 % 3.76 % Noninterest Income Noninterest income for the third quarter of 2022 totaled $3.5 million , down $212,000 , or 6%, from the second quarter of 2022. A decrease in net gain on sale of loans of $186,000 , or 70% from the second quarter was the primary reason for the decline in noninterest income for the third quarter of 2022. Noninterest Expense Noninterest expense for the third quarter of 2022 totaled $20.7 million , down $1.0 million , or 5%, from the second quarter of 2022. The decrease was related primarily to a reduction in merger expenses related to the acquisition of Friendswood, which was partially offset by an increase in compensation and benefits expense, primarily reflecting the growth of the Bank. Noninterest expense for the third quarter of 2022 and the second quarter of 2022 include $60,000 and $1.6 million , respectively, of merger expenses related to the acquisition of Friendswood. Capital At September 30, 2022 , shareholders' equity totaled $316.7 million , down $12.5 million , or 4%, compared to $329.1 million at June 30, 2022 . The decrease was primarily due to the Company's accumulated other comprehensive loss on available for sale investment securities during the third quarter of 2022, which was partially offset by the Company's earnings. The market value of the Company's available for sale securities at September 30, 2022 declined $25.1 million , or 73% compared to $34.5 million at June 30, 2022 . Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.76% and 13.50%, respectively, at September 30, 2022 , compared to 9.30% and 13.74%, respectively, at June 30, 2022 . Dividend and Share Repurchases The Company announced that its Board of Directors increased its quarterly cash dividend on shares of its common stock to $0.24 per share payable on November 10, 2022 , to shareholders of record as of October 31, 2022 . The Company repurchased 77,021 shares of its common stock during the third quarter of 2022 at an average price per share of $37.06 . An additional 197,033 shares remain eligible for purchase under the 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $38.27 and $27.66 , respectively, at September 30, 2022 . Non-GAAP Reconciliation This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this news release, information is included which excludes intangible assets, PPP loans and certain acquisition related metrics. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company's financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation on non-GAAP information included herein to GAAP is presented below. Quarter Ended (dollars in thousands, except per share data) 9/30/2022 6/30/2022 9/30/2021 Reported net income $ 10,434 $ 8,461 $ 15,059 Add: Core deposit intangible amortization, net tax 358 359 230 Non-GAAP tangible income $ 10,792 $ 8,820 $ 15,289 Reported loan income $ 29,859 $ 27,304 $ 27,045 Less: PPP loan income 132 402 4,742 Loan income excluding PPP loan income $ 29,727 $ 26,902 $ 22,303 Loan yield 5.17 % 4.94 % 5.60 % (Positive) negative impact of PPP loans — (0.03) (0.60) Loan yield excluding PPP loans 5.17 % 4.91 % 5.00 % Net interest margin 4.11 % 3.76 % 4.16 % (Positive) negative impact of PPP loans — (0.03) (0.52) Net interest margin excluding PPP loans 4.11 % 3.73 % 3.64 % Total assets $ 3,167,666 $ 3,362,216 $ 2,763,466 Less: Intangible assets 87,839 88,309 62,229 Non-GAAP tangible assets $ 3,079,827 $ 3,273,907 $ 2,701,237 Total shareholders' equity $ 316,656 $ 329,124 $ 344,149 Less: Intangible assets 87,839 88,309 62,229 Non-GAAP tangible shareholders' equity $ 228,817 $ 240,815 $ 281,920 Total loans $ 2,303,279 $ 2,224,655 $ 1,875,176 Less: PPP loans 7,094 12,083 95,560 Organic loan portfolio $ 2,296,185 $ 2,212,572 $ 1,779,616 Reported net income $ 10,434 $ 8,461 $ 15,059 Add: Provision (reversal) for loan losses 1,696 591 (2,385) Add: Provision for credit losses on unfunded commitments 146 — — Add: Income tax expense 2,598 2,110 3,412 Pre-tax, pre-provision income $ 14,874 $ 11,162 $ 16,086 Less: PPP income 132 402 4,742 Pre-tax, pre-provision, pre- PPP income $ 14,742 $ 10,760 $ 11,344 Allowance for loan losses to total loans 1.19 % 1.17 % 1.29 % Less: PPP loans — 0.01 0.07 Non-GAAP allowance for loan losses to total loans 1.19 % 1.18 % 1.36 % Return on average equity 12.35 % 10.20 % 17.46 % Add: Average intangible assets 4.99 4.23 4.22 Non-GAAP return on average tangible common equity 17.34 % 14.43 % 21.68 % Common equity ratio 10.00 % 9.79 % 12.45 % Less: Intangible assets 2.57 2.43 2.01 Non-GAAP tangible common equity ratio 7.43 % 7.36 % 10.44 % Book value per share $ 38.27 $ 39.44 $ 40.38 Less: Intangible assets 10.61 10.58 7.30 Non-GAAP tangible book value per share $ 27.66 $ 28.86 $ 33.08 This news release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may." Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond our control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2021 describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, the impact of the COVID-19 pandemic, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events. HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (dollars in thousands) 9/30/2022 6/30/2022 % Change 9/30/2021 Assets Cash and cash equivalents $ 150,556 $ 444,151 (66) % $ 413,694 Interest-bearing deposits in banks 349 349 — 349 Investment securities available for sale, at fair value 492,758 480,007 3 304,125 Investment securities held to maturity 1,080 2,086 (48) 2,110 Mortgage loans held for sale 169 1,444 (88) 3,476 Loans, net of unearned income 2,303,279 2,224,655 4 1,875,176 Allowance for loan losses (27,351) (26,020) 5 (24,149) Total loans, net of allowance for loan losses 2,275,928 2,198,635 4 1,851,027 Office properties and equipment, net 43,685 43,979 (1) 44,331 Cash surrender value of bank-owned life insurance 46,019 40,788 13 40,142 Goodwill and core deposit intangibles 87,839 88,309 (1) 62,229 Accrued interest receivable and other assets 69,283 62,468 11 41,983 Total Assets $ 3,167,666 $ 3,362,216 (6) $ 2,763,466 Liabilities Deposits $ 2,738,424 $ 2,920,376 (6) % $ 2,365,717 Other Borrowings 5,539 5,539 — 5,539 Subordinated debt, net of issuance cost 53,958 53,926 — — Federal Home Loan Bank advances 24,816 25,307 (2) 26,430 Accrued interest payable and other liabilities 28,273 27,944 1 21,631 Total Liabilities 2,851,010 3,033,092 (6) 2,419,317 Shareholders' Equity Common stock 83 84 (1) % 85 Additional paid-in capital 164,024 164,177 — 164,316 Common stock acquired by benefit plans (2,150) (2,240) 4 (2,513) Retained earnings 197,553 191,114 3 180,327 Accumulated other comprehensive (loss) income (42,854) (24,011) (78) 1,934 Total Shareholders' Equity 316,656 329,124 (4) 344,149 Total Liabilities and Shareholders' Equity $ 3,167,666 $ 3,362,216 (6) $ 2,763,466 HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) Quarter Ended (dollars in thousands, except per share data) 9/30/2022 6/30/2022 % Change 9/30/2021 % Change Interest Income Loans, including fees $ 29,859 $ 27,304 9 % $ 27,045 10 % Investment securities 2,958 2,338 27 1,189 149 Other investments and deposits 1,447 863 68 189 666 Total interest income 34,264 30,505 12 28,423 21 Interest Expense Deposits 1,270 1,103 15 % 1,120 13 % Other borrowings 53 54 (2) 53 — Subordinated debt expense 859 — — — — Federal Home Loan Bank advances 105 107 (2) 116 (9) Total interest expense 2,287 1,264 81 1,289 77 Net interest income 31,977 29,241 9 27,134 18 Provision (reversal) for loan losses 1,696 591 187 (2,385) 171 Net interest income after provision (reversal) for loan losses 30,281 28,650 6 29,519 3 Noninterest Income Service fees and charges 1,300 1,257 3 % 1,260 3 % Bank card fees 1,623 1,636 (1) 1,519 7 Gain on sale of loans, net 78 264 (70) 415 (81) Income from bank-owned life insurance 231 213 8 1,938 (88) Gain (loss) on sale of assets, net 18 (6) 400 (3) 700 Other income 224 322 (30) 254 (12) Total noninterest income 3,474 3,686 (6) 5,383 (35) Noninterest Expense Compensation and benefits 12,128 12,583 (4) % 9,809 24 % Occupancy 2,297 2,354 (2) 1,717 34 Marketing and advertising 658 648 2 399 65 Data processing and communication 2,284 2,533 (10) 2,118 8 Professional fees 331 475 (30) 234 41 Forms, printing and supplies 185 253 (27) 158 17 Franchise and shares tax 633 391 62 360 76 Regulatory fees 467 698 (33) 301 55 Foreclosed assets, net 101 (10) 1110 74 36 Amortization of acquisition intangible 453 454 — 291 56 Provision for credit losses on unfunded commitments 146 — — — — Other expenses 1,040 1,386 (25) 970 7 Total noninterest expense 20,723 21,765 (5) 16,431 26 Income before income tax expense 13,032 10,571 23 18,471 (29) Income tax expense 2,598 2,110 23 3,412 (24) Net income $ 10,434 $ 8,461 23 $ 15,059 (31) Earnings per share - basic $ 1.29 $ 1.04 24 % $ 1.80 (28) % Earnings per share - diluted $ 1.28 $ 1.03 24 % $ 1.79 (28) % Cash dividends declared per common share $ 0.23 $ 0.23 — % $ 0.23 — % HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) Quarter Ended (dollars in thousands, except per share data) 9/30/2022 6/30/2022 % Change 9/30/2021 % Change EARNINGS DATA Total interest income $ 34,264 $ 30,505 12 % $ 28,423 21 % Total interest expense 2,287 1,264 81 1,289 77 Net interest income 31,977 29,241 9 27,134 18 (Reversal) provision for loan losses 1,696 591 187 (2,385) 171 Total noninterest income 3,474 3,686 (6) 5,383 (35) Total noninterest expense 20,723 21,765 (5) 16,431 26 Income tax expense 2,598 2,110 23 3,412 (24) Net income $ 10,434 $ 8,461 23 $ 15,059 (31) AVERAGE BALANCE SHEET DATA Total assets $ 3,265,907 $ 3,295,196 (1) % $ 2,756,353 18 % Total interest-earning assets 3,060,273 3,088,839 (1) 2,563,981 19 Total loans 2,265,846 2,190,721 3 1,896,808 19 PPP loans 9,431 15,463 (39) 144,626 (93) Total interest-bearing deposits 1,894,275 1,990,485 (5) 1,645,047 15 Total interest-bearing liabilities 1,978,734 2,022,479 (2) 1,677,597 18 Total deposits 2,818,318 2,906,568 (3) 2,358,086 20 Total shareholders' equity 335,053 332,640 1 342,189 (2) PER SHARE DATA Earnings per share - basic $ 1.29 $ 1.04 24 % $ 1.80 (28) % Earnings per share - diluted 1.28 1.03 24 1.79 (28) Book value at period end 38.27 39.44 (3) 40.38 (5) Tangible book value at period end 27.66 28.86 (4) 33.08 (16) Shares outstanding at period end 8,273,334 8,344,095 (1) 8,523,473 (3) Weighted average shares outstanding Basic 8,089,246 8,129,340 — % 8,354,176 (3) % Diluted 8,138,307 8,185,595 (1) 8,405,610 (3) SELECTED RATIOS (1) Return on average assets 1.27 % 1.03 % 23 % 2.17 % (41) % Return on average equity 12.35 10.20 21 17.46 (29) Common equity ratio 10.00 9.79 2 12.45 (20) Efficiency ratio (2) 58.45 66.10 (12) 50.53 16 Average equity to average assets 10.26 10.09 2 12.41 (17) Tier 1 leverage capital ratio (3) 9.76 9.30 5 10.05 (3) Total risk-based capital ratio (3) 13.50 13.74 (2) 15.60 (13) Net interest margin (4) 4.11 3.76 9 4.16 (1) SELECTED NON-GAAP RATIOS (1) Tangible common equity ratio (5) 7.43 % 7.36 % 1 % 10.44 % (29) % Return on average tangible common equity (6) 17.34 14.43 20 21.68 (20) (1) With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods. (2) The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income. (3) Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. (4) Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. (5) Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information. (6) Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION (Unaudited) 9/30/2022 6/30/2022 9/30/2021 (dollars in thousands) Originated Acquired Total Originated Acquired Total Originated Acquired Total CREDIT QUALITY (1) Nonaccrual loans(2) $ 4,281 $ 12,799 $ 17,080 $ 5,332 $ 13,165 $ 18,497 $ 8,592 $ 5,896 $ 14,488 Accruing loans 90 days or more past due 3 — 3 8 — 8 13 — 13 Total nonperforming loans 4,284 12,799 17,083 5,340 13,165 18,505 8,605 5,896 14,501 Foreclosed assets and ORE 14 376 390 — 277 277 772 259 1,031 Total nonperforming assets 4,298 13,175 17,473 5,340 13,442 18,782 9,377 6,155 15,532 Performing troubled debt restructurings 4,686 879 5,565 3,939 1,063 5,002 3,961 1,085 5,046 Total nonperforming assets and troubled debt restructurings $ 8,984 $ 14,054 $ 23,038 $ 9,279 $ 14,505 $ 23,784 $ 13,338 $ 7,240 $ 20,578 Nonperforming assets to total assets 0.55 % 0.56 % 0.56 % Nonperforming loans to total assets 0.54 0.55 0.52 Nonperforming loans to total loans 0.74 0.83 0.77 (1) It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings. (2) Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $3.3 million , $5.3 million and $4.1 million at September 30, 2022 , June 30, 2022 and September 30, 2021 , respectively. Acquired restructured loans placed on nonaccrual totaled $3.2 million , $2.8 million and $3.5 million at September 30, 2022 , June 30, 2022 and September 30, 2021 , respectively. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION - CONTINUED (Unaudited) 9/30/2022 6/30/2022 9/30/2021 Collectively Evaluated Individually Evaluated Total Collectively Evaluated Individually Evaluated Total Collectively Evaluated Individually Evaluated Total ALLOWANCE FOR CREDIT LOSSES One- to four-family first mortgage $ 2,293 $ 32 $ 2,325 $ 2,158 $ — $ 2,158 $ 2,145 $ — $ 2,145 Home equity loans and lines 500 — 500 491 — 491 521 — 521 Commercial real estate 12,504 1,193 13,697 12,068 1,193 13,261 12,872 455 13,327 Construction and land 4,973 — 4,973 4,689 — 4,689 3,628 — 3,628 Multi-family residential 498 — 498 526 — 526 627 — 627 Commercial and industrial 4,523 188 4,711 3,654 591 4,245 2,815 435 3,250 Consumer 647 — 647 650 — 650 651 — 651 Total allowance for credit losses $ 25,938 $ 1,413 $ 27,351 $ 24,236 $ 1,784 $ 26,020 $ 23,259 $ 890 $ 24,149 Unfunded lending commitments(3) 2,263 — 2,263 2,117 — 2,117 1,800 — 1,800 Total allowance for credit losses $ 28,201 $ 1,413 $ 29,614 $ 26,353 $ 1,784 $ 28,137 $ 25,059 $ 890 $ 25,949 Allowance for loan losses to nonperforming assets 156.53 % 138.54 % 155.48 % Allowance for loan losses to nonperforming loans 160.11 % 140.61 % 166.53 % Allowance for loan losses to total loans 1.19 % 1.17 % 1.29 % Allowance for credit losses to total loans 1.29 % 1.26 % 1.38 % Year-to-date loan charge-offs $ 1,260 $ 844 $ 1,807 Year-to-date loan recoveries 605 554 506 Year-to-date net loan charge-offs $ 655 $ 290 $ 1,301 Annualized YTD net loan charge-offs to average loans 0.04 % 0.03 % 0.09 % (3) The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. View original content to download multimedia: https://www.prnewswire.com/news-releases/home-bancorp-inc-announces-2022-third-quarter-results-and-increases-quarterly-dividend-by-4-301651437.html SOURCE Home Bancorp, Inc.

View stock analysis, news, and events for Home Bancorp, Inc.