HOME BANCORP, INC. ANNOUNCES 2023 SECOND QUARTER RESULTS AND DECLARES QUARTERLY DIVIDEND

About this update from Home Bancorp, Inc.

LAFAYETTE, La. , July 17, 2023 /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 second quarter of 2023. For the quarter, the Company reported net income of $9.8 million , or $1.21 per diluted common share ("diluted EPS"), down $1.5 million from $11.3 million , or $1.39 diluted EPS, for the first quarter of 2023. "Considering everything that has happened in banking during this interest rate cycle, we're pleased with our second quarter performance," said John W. Bordelon , President and Chief Executive Officer of the Company and the Bank. "Like every other community bank, we've faced pressure on deposits but have so far been able to retain relationships while keeping the cost of our total deposits below 1% for the second quarter. I think this is due to the strength of our deposit franchise, which is something we were focused on even when rates were near zero. Loan growth continued in the second quarter despite the rise in interest rates as total loans increased 7% on an annualized basis. As we move forward in the second half of 2023, we remain committed to providing exceptional service to our new and existing customers as we have for the last 115 years." Second Quarter 2023 Highlights Loans totaled $2.5 billion at June 30, 2023 , up $44.4 million , or 1.8% (7% on an annualized basis) from March 31, 2023 . Net interest income totaled $30.3 million , down $1.3 million , or 4% from the prior quarter. The net interest margin ("NIM") decreased 24 basis points from 4.18% for the first quarter of 2023 to 3.94%. The Company recorded a $511,000 provision to the allowance for loan losses primarily due to loan growth. Nonperforming assets totaled $12.4 million , or 0.38% of total assets, up $1.1 million , or 10%, from $11.3 million , or 0.35% of total assets, at March 31, 2023 primarily due to three credit relationships. Loans Loans totaled $2.5 billion at June 30, 2023 , up $44.4 million , or 2%, from March 31, 2023 . The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from March 31, 2023 through June 30, 2023 . (dollars in thousands) 6/30/2023 3/31/2023 Increase (Decrease) Real estate loans: One- to four-family first mortgage $ 419,091 $ 405,638 $ 13,453 3 % Home equity loans and lines 66,932 64,107 2,825 4 Commercial real estate 1,176,976 1,162,367 14,609 1 Construction and land 327,488 318,622 8,866 3 Multi-family residential 103,951 102,604 1,347 1 Total real estate loans 2,094,438 2,053,338 41,100 2 Other loans: Commercial and industrial 382,292 379,119 3,173 1 Consumer 34,029 33,935 94 — Total other loans 416,321 413,054 3,267 1 Total loans $ 2,510,759 $ 2,466,392 $ 44,367 2 % The average loan yield was 5.82% for the second quarter of 2023, up 15 basis points from the first quarter of 2023. Loan growth during the second quarter of 2023 was across all loan types. The loan growth was across most of our markets. Approximately 19% of the loan growth in the second quarter of 2023 was attributable to the Houston market. Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs") totaled $12.4 million , or 0.38% of total assets, at June 30, 2023 , up $1.1 million , or 10%, from $11.3 million , or 0.35% of total assets, at March 31, 2023 . During the second quarter of 2023, the Company recorded net loan recoveries of $10,000 , compared to net loan recoveries of $5,000 during the first quarter of 2023. The Company provisioned $511,000 to the allowance for loan losses in the second quarter of 2023. At June 30, 2023 , the allowance for loan losses totaled $30.6 million , or 1.22% of total loans, compared to $30.1 million , or 1.22% of total loans, at March 31, 2023 . Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors. The following tables present the Company's loan portfolio by credit quality classification as of June 30, 2023 and March 31, 2023 . June 30, 2023 (dollars in thousands) Pass SpecialMention Substandard Total One- to four-family first mortgage $ 415,162 $ 872 $ 3,057 $ 419,091 Home equity loans and lines 66,809 — 123 66,932 Commercial real estate 1,160,405 335 16,236 1,176,976 Construction and land 319,738 5,410 2,340 327,488 Multi-family residential 100,521 — 3,430 103,951 Commercial and industrial 377,529 2,894 1,869 382,292 Consumer 33,832 — 197 34,029 Total $ 2,473,996 $ 9,511 $ 27,252 $ 2,510,759 March 31, 2023 (dollars in thousands) Pass SpecialMention Substandard Total One- to four-family first mortgage $ 401,296 $ 1,224 $ 3,118 $ 405,638 Home equity loans and lines 64,076 — 31 64,107 Commercial real estate 1,148,828 340 13,199 1,162,367 Construction and land 311,638 5,431 1,553 318,622 Multi-family residential 99,221 — 3,383 102,604 Commercial and industrial 374,364 2,783 1,972 379,119 Consumer 33,672 — 263 33,935 Total $ 2,433,095 $ 9,778 $ 23,519 $ 2,466,392 Investment Securities The Company's investment securities portfolio totaled $450.5 million at June 30, 2023 , a decrease of $17.1 million , or 3.7% from March 31, 2023 . The Company recorded no sales of available-for-sale investment securities during the three months ended June 30, 2023 . During the first quarter 2023, the Company recorded a net loss of $249,000 related to the sale of available-for-sale investment securities totaling $14.0 million . At June 30, 2023 , the Company had a net unrealized loss position on its investment securities of $53.2 million , compared to a net unrealized loss of $47.1 million at March 31, 2023 . The Company's investment securities portfolio had an effective duration of 4.5 years at June 30, 2023 and March 31, 2023 . The following table summarizes the composition of the Company's investment securities portfolio at June 30, 2023 . (dollars in thousands) AmortizedCost Fair Value Available for sale: U.S. agency mortgage-backed $ 332,737 $ 295,541 Collateralized mortgage obligations 86,478 81,327 Municipal bonds 56,316 47,855 U.S. government agency 20,080 18,588 Corporate bonds 6,981 6,085 Total available for sale $ 502,592 $ 449,396 Held to maturity: Municipal bonds $ 1,066 $ 1,065 Total held to maturity $ 1,066 $ 1,065 Approximately 30% of the investment securities portfolio was pledged as of June 30, 2023 . As of June 30, 2023 and March 31, 2023 , the Company had $134.9 million and $146.5 million , respectively, of securities pledged to secure public deposits. Deposits Total deposits were $2.6 billion at June 30, 2023 , down $6.0 million , or less than 1%, from March 31, 2023 . Non-maturity deposits decreased $98.6 million , or 5% during the second quarter of 2023 to $2.1 billion . The following table summarizes the changes in the Company's deposits from March 31, 2023 to June 30, 2023 . (dollars in thousands) 6/30/2023 3/31/2023 Increase (Decrease) Demand deposits $ 816,555 $ 854,736 $ (38,181) (4) % Savings 261,780 288,788 (27,008) (9) Money market 363,801 384,809 (21,008) (5) NOW 645,087 657,499 (12,412) (2) Certificates of deposit 464,495 371,912 92,583 25 Total deposits $ 2,551,718 $ 2,557,744 $ (6,026) — % The average rate on interest-bearing deposits increased 53 basis points from 0.77% for the first quarter of 2023 to 1.30% for the second quarter of 2023. At June 30, 2023 , certificates of deposit maturing within the next 12 months totaled $402.3 million . We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated. June 30, 2023 March 31, 2023 Individuals 51 % 51 % Small businesses 39 39 Public funds 8 8 Broker 2 2 Total 100 % 100 % The total amounts of our uninsured deposits (deposits in excess of $250,000 , as calculated in accordance with FDIC regulations) were $735 .4 million at June 30, 2023 and $778.0 million at March 31, 2023 . Public funds in excess of the FDIC insurance limits are fully collateralized. Net Interest Income The net interest margin ("NIM") decreased 24 basis points from 4.18% for the first quarter of 2023 to 3.94% for the second quarter of 2023 primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset with an increase in the average yield on interest-earning assets. The increase in average cost of interest-bearing liabilities was primarily due to the higher costs on short-term FHLB borrowings and deposits in the second quarter of 2023. The average loan yield was 5.82% for the second quarter of 2023, up 15 basis points from the first quarter of 2023, primarily reflecting increased market rates of interest on variable loans coupled with new loan originations at higher market rates during the period. Average other interest-earning assets were $52.3 million for the second quarter of 2023, down $1.2 million , or 2%, from the first quarter of 2023 primarily due to a reallocation of certain other interest-earning assets. Loan accretion income from acquired loans totaled $647,000 for the second quarter of 2023, down $21,000 , or 3%, from the first quarter of 2023. 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 6/30/2023 3/31/2023 (dollars in thousands) AverageBalance Interest AverageYield/ Rate AverageBalance Interest AverageYield/ Rate Interest-earning assets: Loans receivable $ 2,491,029 $ 36,530 5.82 % $ 2,437,770 $ 34,498 5.67 % Investment securities (TE) 507,050 2,986 2.37 535,195 3,142 2.38 Other interest-earning assets 52,256 555 4.26 53,456 475 3.60 Total interest-earning assets $ 3,050,335 $ 40,071 5.22 % $ 3,026,421 $ 38,115 5.05 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $ 1,300,245 $ 3,023 0.93 % $ 1,349,185 $ 2,048 0.62 % Certificates of deposit 407,038 2,524 2.49 349,683 1,192 1.38 Total interest-bearing deposits 1,707,283 5,547 1.30 1,698,868 3,240 0.77 Other borrowings 5,651 55 3.88 5,539 53 3.89 Subordinated debt 54,098 850 6.29 54,041 851 6.30 FHLB advances 272,783 3,313 4.81 215,478 2,376 4.41 Total interest-bearing liabilities $ 2,039,815 $ 9,765 1.91 % $ 1,973,926 $ 6,520 1.33 % Noninterest-bearing deposits $ 831,517 $ 879,501 Net interest spread (TE) 3.31 % 3.72 % Net interest margin (TE) 3.94 % 4.18 % Noninterest Income Noninterest income for the second quarter of 2023 totaled $3.4 million , up $137,000 , or 4%, from the first quarter of 2023. The increase was related primarily to the absence of a net loss on sale of securities totaling $249,000 during the first quarter of 2023, which was partially offset by decreases in bank card fees of $72,000 and gain on sale of loans of $31,000 for the second quarter of 2023 compared to the first quarter of 2023. Noninterest Expense Noninterest expense for the second quarter of 2023 totaled $21.0 million , up $1.0 million , or 5%, from the first quarter of 2023. The increase was primarily related to foreclosed assets expense (up $789,000 primarily due to the absence of a $739,000 recovery of a previous loss on a foreclosed asset in the first quarter of 2023), other expenses (up $167,000 ), compensation and benefits expense (up $162,000 ), and marketing and advertising expenses (up $135,000 ), which were partially offset by a decrease in data processing and communication fees and expenses (down $189,000 ) during the second quarter of 2023. Capital and Liquidity At June 30, 2023 , shareholders' equity totaled $346.1 million , up $1.0 million , or less than 1%, compared to $345.1 million at March 31, 2023 . The increase was primarily due to the Company's earnings of $9.8 million in the quarter, which was partially offset with an increase in the accumulated other comprehensive loss on available for sale investment securities and repurchase of the Company's common shares of stock during the second quarter of 2023. The market value of the Company's available for sale securities at June 30, 2023 decreased $6.1 million , or 13%, compared to $47.1 million at March 31, 2023 . Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.78% and 14.07%, respectively, at June 30, 2023 , compared to 10.69% and 14.00%, respectively, at March 31, 2023 . The following table summarizes the Company's primary and secondary sources of liquidity which were available at June 30, 2023 . (dollars in thousands) June 30, 2023 Cash and cash equivalents $ 96,873 Unencumbered investment securities, amortized cost 72,354 FHLB advance availability 897,776 Amounts available from unsecured lines of credit 55,000 Federal Reserve bank term funding program 109,379 Federal Reserve discount window availability 500 Total primary and secondary sources of available liquidity $ 1,231,882 Dividend and Share Repurchases The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.25 per share payable on August 11, 2023 , to shareholders of record as of July 31, 2023 . The Company repurchased 99,734 shares of its common stock during the second quarter of 2023 at an average price per share of $31.58 . An additional 85,785 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 $42.22 and $31.59 , respectively, at June 30, 2023 . Conference Call Executive management will host a conference call to discuss second quarter 2023 results on Tuesday, July 18, 2023 at 10:30 a.m. CDT . Analysts, investors and interested parties may attend the conference call by dialing toll free 1.848.488.9160 (US Local/International) or 1.877.550.1858 (US Toll Free). The investor presentation can be accessed the day of the presentation on Home Bancorp, Inc. website at https://home24bank.investorroom.com . A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company's website, https://home24bank.investorroom.com . 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, 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) 6/30/2023 3/31/2023 6/30/2022 Reported net income $ 9,781 $ 11,320 $ 8,461 Add: Core deposit intangible amortization, net tax 307 352 359 Non-GAAP tangible income $ 10,088 $ 11,672 $ 8,820 Total assets $ 3,290,153 $ 3,266,970 $ 3,362,216 Less: Intangible assets 87,138 87,527 88,309 Non-GAAP tangible assets $ 3,203,015 $ 3,179,443 $ 3,273,907 Total shareholders' equity $ 346,117 $ 345,100 $ 329,124 Less: Intangible assets 87,138 87,527 88,309 Non-GAAP tangible shareholders' equity $ 258,979 $ 257,573 $ 240,815 Return on average equity 11.26 % 13.53 % 10.20 % Add: Average intangible assets 4.24 5.29 4.23 Non-GAAP return on average tangible common equity 15.50 % 18.82 % 14.43 % Common equity ratio 10.52 % 10.56 % 9.79 % Less: Intangible assets 2.43 2.46 2.43 Non-GAAP tangible common equity ratio 8.09 % 8.10 % 7.36 % Book value per share $ 42.22 $ 41.66 $ 39.44 Less: Intangible assets 10.63 10.57 10.58 Non-GAAP tangible book value per share $ 31.59 $ 31.09 $ 28.86 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, 2022 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) 6/30/2023 3/31/2023 %Change 6/30/2022 Assets Cash and cash equivalents $ 96,873 $ 107,171 (10) % $ 444,151 Interest-bearing deposits in banks 99 349 (72) 349 Investment securities available for sale, at fair value 449,396 466,506 (4) 480,007 Investment securities held to maturity 1,066 1,070 — 2,086 Mortgage loans held for sale 538 473 14 1,444 Loans, net of unearned income 2,510,759 2,466,392 2 2,224,655 Allowance for loan losses (30,639) (30,118) 2 (26,020) Total loans, net of allowance for loan losses 2,480,120 2,436,274 2 2,198,635 Office properties and equipment, net 42,904 42,844 — 43,979 Cash surrender value of bank-owned life insurance 46,789 46,528 1 40,788 Goodwill and core deposit intangibles 87,138 87,527 — 88,309 Accrued interest receivable and other assets 85,230 78,228 9 62,468 Total Assets $ 3,290,153 $ 3,266,970 1 $ 3,362,216 Liabilities Deposits $ 2,551,718 $ 2,557,744 — % $ 2,920,376 Other Borrowings 5,539 5,539 — 5,539 Subordinated debt, net of issuance cost 54,133 54,073 — 53,926 Federal Home Loan Bank advances 305,297 276,727 10 25,307 Accrued interest payable and other liabilities 27,349 27,787 (2) 27,944 Total Liabilities 2,944,036 2,921,870 1 3,033,092 Shareholders' Equity Common stock 82 83 (1) 84 Additional paid-in capital 164,945 165,470 — 164,177 Common stock acquired by benefit plans (1,878) (1,969) 5 (2,240) Retained earnings 220,801 215,290 3 191,114 Accumulated other comprehensive loss (37,833) (33,774) (12) (24,011) Total Shareholders' Equity 346,117 345,100 — 329,124 Total Liabilities and Shareholders' Equity $ 3,290,153 $ 3,266,970 1 $ 3,362,216 HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) Quarter Ended (dollars in thousands, except per share data) 6/30/2023 3/31/2023 %Change 6/30/2022 %Change Interest Income Loans, including fees $ 36,530 $ 34,498 6 % $ 27,304 34 % Investment securities 2,986 3,142 (5) 2,338 28 Other investments and deposits 555 475 17 863 (36) Total interest income 40,071 38,115 5 30,505 31 Interest Expense Deposits 5,547 3,240 71 % 1,103 403 % Other borrowings 55 53 4 54 2 Subordinated debt expense 850 851 — — — Federal Home Loan Bank advances 3,313 2,376 39 107 2996 Total interest expense 9,765 6,520 50 1,264 673 Net interest income 30,306 31,595 (4) 29,241 4 Provision for loan losses 511 814 (37) 591 (14) Net interest income after provision for loan losses 29,795 30,781 (3) 28,650 4 Noninterest Income Service fees and charges 1,230 1,250 (2) % 1,257 (2) % Bank card fees 1,715 1,787 (4) 1,636 5 Gain on sale of loans, net 26 57 (54) 264 (90) Income from bank-owned life insurance 260 253 3 213 22 Loss on sale of securities, net — (249) 100 — — Loss on sale of assets, net (3) (17) 82 (6) 50 Other income 220 230 (4) 322 (32) Total noninterest income 3,448 3,311 4 3,686 (6) Noninterest Expense Compensation and benefits 12,601 12,439 1 % 12,583 — % Occupancy 2,447 2,350 4 2,354 4 Marketing and advertising 442 307 44 648 (32) Data processing and communication 2,132 2,321 (8) 2,533 (16) Professional fees 459 364 26 475 (3) Forms, printing and supplies 204 187 9 253 (19) Franchise and shares tax 541 541 — 391 38 Regulatory fees 401 539 (26) 698 (43) Foreclosed assets, net 50 (739) 107 (10) 600 Amortization of acquisition intangible 389 446 (13) 454 (14) Provision for credit losses on unfunded commitments 151 210 (28) — — Other expenses 1,142 975 17 1,386 (18) Total noninterest expense 20,959 19,940 5 21,765 (4) Income before income tax expense 12,284 14,152 (13) 10,571 16 Income tax expense 2,503 2,832 (12) 2,110 19 Net income $ 9,781 $ 11,320 (14) $ 8,461 16 Earnings per share - basic $ 1.22 $ 1.40 (13) % $ 1.04 17 % Earnings per share - diluted $ 1.21 $ 1.39 (13) % $ 1.03 17 % Cash dividends declared per common share $ 0.25 $ 0.25 — % $ 0.23 9 % HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) Quarter Ended (dollars in thousands, except per share data) 6/30/2023 3/31/2023 %Change 6/30/2022 %Change EARNINGS DATA Total interest income $ 40,071 $ 38,115 5 % $ 30,505 31 % Total interest expense 9,765 6,520 50 1,264 673 Net interest income 30,306 31,595 (4) 29,241 4 Provision for loan losses 511 814 (37) 591 (14) Total noninterest income 3,448 3,311 4 3,686 (6) Total noninterest expense 20,959 19,940 5 21,765 (4) Income tax expense 2,503 2,832 (12) 2,110 19 Net income $ 9,781 $ 11,320 (14) $ 8,461 16 AVERAGE BALANCE SHEET DATA Total assets $ 3,250,190 $ 3,219,856 1 % $ 3,295,196 (1) % Total interest-earning assets 3,050,335 3,026,421 1 3,088,839 (1) Total loans 2,491,029 2,437,770 2 2,190,721 14 PPP loans 6,100 6,386 (4) 15,463 (61) Total interest-bearing deposits 1,707,283 1,698,868 — 1,990,485 (14) Total interest-bearing liabilities 2,039,815 1,973,926 3 2,022,479 1 Total deposits 2,538,800 2,578,369 (2) 2,906,568 (13) Total shareholders' equity 348,414 339,311 3 332,640 5 PER SHARE DATA Earnings per share - basic $ 1.22 $ 1.40 (13) % $ 1.04 17 % Earnings per share - diluted 1.21 1.39 (13) 1.03 17 Book value at period end 42.22 41.66 1 39.44 7 Tangible book value at period end 31.59 31.09 2 28.86 9 Shares outstanding at period end 8,197,859 8,284,130 (1) 8,344,095 (2) Weighted average shares outstanding Basic 8,042,434 8,087,524 (1) % 8,129,340 (1) % Diluted 8,079,205 8,136,583 (1) 8,185,595 (1) SELECTED RATIOS (1) Return on average assets 1.21 % 1.43 % (15) % 1.03 % 17 % Return on average equity 11.26 13.53 (17) 10.20 10 Common equity ratio 10.52 10.56 — 9.79 7 Efficiency ratio (2) 62.09 57.12 9 66.10 (6) Average equity to average assets 10.72 10.54 2 10.09 6 Tier 1 leverage capital ratio (3) 10.78 10.69 1 9.30 16 Total risk-based capital ratio (3) 14.07 14.00 1 13.74 2 Net interest margin (4) 3.94 4.18 (6) 3.76 5 SELECTED NON-GAAP RATIOS (1) Tangible common equity ratio (5) 8.09 % 8.10 % — % 7.36 % 10 % Return on average tangible common equity (6) 15.50 18.82 (18) 14.43 7 (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) 6/30/2023 3/31/2023 6/30/2022 (dollars in thousands) Originated Acquired Total Originated Acquired Total Originated Acquired Total CREDIT QUALITY (1) Nonaccrual loans(2) $ 6,806 $ 5,364 $ 12,170 $ 5,546 $ 5,686 $ 11,232 $ 5,332 $ 13,165 $ 18,497 Accruing loans 90 days or more pastdue 26 — 26 — — — 8 — 8 Total nonperforming loans 6,832 5,364 12,196 5,546 5,686 11,232 5,340 13,165 18,505 Foreclosed assets and ORE 121 80 201 — 80 80 — 277 277 Total nonperforming assets 6,953 5,444 12,397 5,546 5,766 11,312 5,340 13,442 18,782 Performing troubled debt restructurings — — — — — — 3,939 1,063 5,002 Total nonperforming assets andtroubled debt restructurings $ 6,953 $ 5,444 $ 12,397 $ 5,546 $ 5,766 $ 11,312 $ 9,279 $ 14,505 $ 23,784 Nonperforming assets to total assets 0.38 % 0.35 % 0.56 % Nonperforming loans to total assets 0.37 0.34 0.55 Nonperforming loans to total loans 0.49 0.46 0.83 (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 $5.3 million at June 30, 2022 . Acquired restructured loans placed on nonaccrual totaled $2.8 million at June 30, 2022 . With the adoption of ASU 2022-02, effective January 1, 2023 , TDR accounting has been eliminated. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION - CONTINUED (Unaudited) 6/30/2023 3/31/2023 6/30/2022 CollectivelyEvaluated IndividuallyEvaluated Total CollectivelyEvaluated IndividuallyEvaluated Total CollectivelyEvaluated IndividuallyEvaluated Total ALLOWANCE FOR CREDIT LOSSES One- to four-family first mortgage $ 3,200 $ — $ 3,200 $ 3,356 $ — $ 3,356 $ 2,158 $ — $ 2,158 Home equity loans and lines 707 — 707 753 — 753 491 — 491 Commercial real estate 14,299 499 14,798 13,344 450 13,794 12,068 1,193 13,261 Construction and land 4,822 — 4,822 4,921 — 4,921 4,689 — 4,689 Multi-family residential 512 — 512 608 — 608 526 — 526 Commercial and industrial 5,734 121 5,855 5,831 143 5,974 3,654 591 4,245 Consumer 745 — 745 712 — 712 650 — 650 Total allowance for credit losses $ 30,019 $ 620 $ 30,639 $ 29,525 $ 593 $ 30,118 $ 24,236 $ 1,784 $ 26,020 Unfunded lending commitments(3) 2,454 — 2,454 2,303 — 2,303 2,117 — 2,117 Total allowance for credit losses $ 32,473 $ 620 $ 33,093 $ 31,828 $ 593 $ 32,421 $ 26,353 $ 1,784 $ 28,137 Allowance for loan losses to nonperforming assets 247.15 % 266.25 % 138.54 % Allowance for loan losses tononperforming loans 251.22 % 268.14 % 140.61 % Allowance for loan losses to totalloans 1.22 % 1.22 % 1.17 % Allowance for credit losses to totalloans 1.32 % 1.31 % 1.26 % Year-to-date loan charge-offs $ 137 $ 93 $ 844 Year-to-date loan recoveries 152 98 554 Year-to-date net loan recoveries(charge-offs) $ 15 $ 5 $ (290) Annualized YTD net loan recoveries(charge-offs) to average loans — % — % (0.03) % (3) The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. 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