PR Newswire | Jan 26, 2021 07:30AM EST

Dividend

01/26 06:30 CST

Home Bancorp Announces 2020 Fourth Quarter Results And Declares Quarterly Dividend LAFAYETTE, La., Jan. 26, 2021

LAFAYETTE, La., Jan. 26, 2021 /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 fourth quarter of 2020. For the quarter, the Company reported net income of $11.6 million, or $1.36 per diluted common share ("diluted EPS"), up $2.8 million from $8.8 million, or $1.01 diluted EPS, for the third quarter of 2020.

"2020 was a very challenging year for the Company and our customers with the impact of the COVID-19 pandemic and economic crisis", said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank. "The Bank remains well positioned with the reserve builds we made in the first half of 2020 to withstand potential losses given the impact of the ongoing COVID-19 pandemic on economic conditions and credit quality in our markets."

"I am proud of the commitment by our employees to serve our communities and remain focused on loan and deposit growth in this challenging environment. They are ready to assist customers in the second round of the Paycheck Protection Program."

"Our customers have proven to be resilient during troubling times and we will weather the storm together."

COVID-19 Response

Banking operations remain unencumbered by state and local government COVID-19 restrictions. However, we have adapted to protect our employees and customers by working remotely, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus. State government imposed COVID-19 restrictions continue to be in place within our Louisiana and Mississippi markets. The restrictions primarily place limits on capacity and hours of operation of certain businesses.

During the second and third quarters of 2020, the Company funded approximately 3,072 loans totaling $262.2 million under the Small Business Administration's ("SBA") Paycheck Protection Program ("PPP"). At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which approximately 2,495 loans with an aggregate outstanding balance of $70.5 million were for amounts of $150,000 or less.

To give immediate financial support to our customers, the Company began providing principal and/or interest payment relief options in March 2020. When we last reported the level of such deferrals in our third quarter Form 10-Q (as of September 30, 2020), $70.2 million, or 4% of total loans, were under deferral agreements. As of December 31, 2020, the level of deferrals decreased to $36.0 million, or 2% of total loans. The level of COVID-19 related deferrals formerly totaled $558.8 million, or 28% of total loans, at June 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.

Fourth Quarter 2020 Highlights

* Net income totaled $11.6 million, up $2.8 million, or 32%, from the prior quarter primarily due to a $1.5 million increase in interest income on loans and the release of $1.3 million in the allowance for credit losses on unfunded lending commitments. * Loan income from the recognition of deferred PPP lender fees totaled $2.2 million, up $1.1 million from the prior quarter. Loan accretion income from acquired loans totaled $1.7 million, up $847,000 compared to the prior quarter. * A revision to the Company's estimate of credit loss on unfunded lending commitments led to a release of $1.3 million in reserves through noninterest expense and a $740,000 (net of tax) increase to retained earnings to adjust the impact of CECL adoption. * Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 5% annualized, from September 30, 2020. Excluding PPP loans, loan growth during the same comparative period was up $57.9 million, or 14% annualized. * For the second consecutive quarter, the Company recorded no provision for loan losses. In light of our reserve builds during the first half of 2020, no additional provisions were made. * The allowance for loan losses totaled $33.0 million, or 1.66% of total loans, at December 31, 2020. The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $34.4 million, or 1.74% of total loans, at December 31, 2020. Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.87% and 1.96%, respectively, at such date. * Nonperforming assets totaled $20.0 million, or 0.77% of total assets, down $4.9 million, or 20%, from September 30, 2020 primarily due to pay-downs on nonaccrual loans. * Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.68% and 15.18% at December 31, 2020, compared to 9.44% and 15.29% at September 30, 2020. * The net interest margin was 4.11% for the fourth quarter of 2020, up 29 basis points from the third quarter of 2020 primarily due to an increase in interest income on loans and further aided by a decrease in the cost of deposits. * The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.

Loans

Loans totaled $2.0 billion at December 31, 2020, up $24.7 million, or 1%, from September 30, 2020. The following table summarizes the changes in the Company's loan portfolio from September 30, 2020 to December 31, 2020.



December 31,September 30,Increase (Decrease)

(dollars in thousands) 2020 2020 Amount Percent

Real estate loans:

One- to four-family first $395,638 $409,282 $(13,644)(3)% mortgage

Home equity loans and 67,700 67,766 (66) - lines

Commercial real estate 750,623 707,638 42,985 6

Construction and land 221,823 201,575 20,248 10

Multi-family residential 87,332 86,619 713 1

Total real estate loans 1,523,116 1,472,880 50,236 3

Other loans:

Commercial and industrial 417,926 443,480 (25,554) (6)

Consumer 38,912 38,937 (25) -

Total other loans 456,838 482,417 (25,579) (5)

Total loans $1,979,954$1,955,297 $24,657 1 %

During the fourth quarter of 2020, substantial commercial real estate and construction and land loan growth was partially offset by pay-downs of commercial and industrial loans and residential mortgages. The change in commercial and industrial loans included a decrease in PPP loans of $33.3 million, or 13%, from September 30, 2020. Residential mortgages declined primarily due to refinances as borrowers sought to acquire lower interest rates.

Commercial real estate ("CRE") loan growth was fairly evenly distributed across our major Louisiana markets and was primarily attributable to non-owner-occupied loans to borrowers outside of industry sectors that have been subject to increased monitoring during the COVID-19 pandemic. At December 31, 2020, CRE loans within our Acadiana and New Orleans markets accounted for approximately 65% of our total commercial real estate portfolio.

Construction and land ("C&D") loan growth was spread across our New Orleans, Acadiana and Baton Rouge markets and was primarily driven by non-residential construction projects. At December 31, 2020, C&D loans within our Acadiana, New Orleans, and Northshore markets accounted for approximately 70% of our total construction and land portfolio.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs"), totaled $20.0 million, or 0.77% of total assets at December 31, 2020, down $4.9 million, or 20%, from $24.8 million, or 0.96% of total assets, at September 30, 2020.

The Company recorded net loan charge-offs of $39,000 during the fourth quarter of 2020, compared to net loan charge-offs of $821,000 for the third quarter of 2020.

At December 31, 2020, loans under interest and/or principal payment deferral agreements due to the COVID-19 crisis totaled $36.0 million, or 2% of total loans, down from $70.2 million, or 4% of total loans, as of September 30, 2020. Of the loans that have exited deferral agreements, $469.2 million, or 98%, were current and performing as of December 31, 2020.

The Company recorded no provision for loan losses for the fourth quarter of 2020. Upon review of our allowance for loan losses in light of, among other factors, our reserve builds during the first half of 2020, we determined that no additional provision was required during the quarter in order to reflect the expected losses for the full lives of the loans in our portfolio. The provision for loan losses for the year ended December 31, 2020 totaled $12.7 million, up $9.7 million from the prior year. 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.

In addition to the allowance for loan losses, our allowance for credit losses includes an allowance for unfunded lending commitments. The allowance for unfunded lending commitments amounted to $1.4 million at December 31, 2020 compared to $3.6 million at September 30, 2020. During the fourth quarter of 2020, we revised our estimate of losses on unfunded lending commitments which resulted in an aggregate release of $2.2 million of this allowance. Of the $2.2 million release of the allowance for unfunded lending commitments, $1.3 million was recognized as a reduction of non-interest expense and $940,000 ($740,000 net of taxes) was recognized as an increase to retained earnings.

The following table provides a summary of the loan portfolio and related reserves at December 31, 2020. We have separately identified certain information regarding PPP loans which, due to the existence of full repayment guarantees from the SBA as well as the likelihood that the vast majority of such loans will be forgiven, we believe entail minimal credit risk to the Company.

(dollars in ACL to ACL to thousands) Total Loans PPP Loans Total ACLTotal LoansTotal Non-PPP Loans

December 31, 2020

Retail CRE $190,085 $- $6,641 3.49 %3.49 %

Hotels and short-term 103,875 3,587 5,754 5.54 5.74 rentals

Restaurants 92,789 30,990 3,106 3.35 5.03 and bars

Energy 31,304 - 1,638 5.23 5.23

Credit cards4,012 - 403 10.04 10.04

Other loans 1,557,889 186,643 15,421 0.99 1.12

Total $1,979,954$221,220$32,9631.66 %1.87 %



Unfunded lending - - 1,425 - - commitments^ (1)

Total $1,979,954$221,220$34,3881.74 %1.96 %



At December 31, 2020, the allowance of $1.4 million related to unfunded(1) lending commitments of $336.9 million. The ACL on unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.

Investment Securities

The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2020.

(dollars in thousands) Recorded Investment

Available for sale

U.S. agency mortgage-backed $142,812

Collateralized mortgage obligations75,620

Municipal bonds 28,011

U.S. government agency 6,255

Corporate bonds 2,054

Total available for sale 254,752

Held to Maturity

Municipal Bonds 2,934

Total investment securities $257,686



Securities available for sale ("AFS") made up 99% of total investment securities and net unrealized gains on AFS securities totaled $6.5 million at December 31, 2020.

Deposits

Total deposits were $2.2 billion at December 31, 2020, up $6.3 million, or less than 1%, from September 30, 2020. The following table summarizes the changes in the Company's deposits from September 30, 2020 to December 31, 2020.



December 31,September 30,Increase/(Decrease)

(dollars in thousands) 2020 2020 Amount Percent

Demand deposits $615,700 $629,345 $(13,645)(2) %

Savings 250,165 242,849 7,316 3

Money market 333,078 336,310 (3,232) (1)

NOW 646,085 620,081 26,004 4

Certificates of deposit368,793 378,909 (10,116) (3)

Total deposits $2,213,821$2,207,494 $6,327 - %

Net Interest Income

The net interest margin ("NIM") increased 29 basis points from 3.82% for the third quarter of 2020 to 4.11% for the fourth quarter of 2020 primarily due to an increase in loan income and further aided by a decrease in the cost of deposits.

The average loan yield was 5.20% for the fourth quarter of 2020, up 26 basis points from the third quarter of 2020. Loan income from the recognition of deferred PPP lender fees totaled $2.2 million during the fourth quarter of 2020, up $1.1 million, or 103%, compared to the third quarter of 2020. As a result, PPP loans positively impacted the average loan yield by 11 basis points and the NIM by 5 basis points during the fourth quarter of 2020. During the third quarter of 2020, PPP loans negatively impacted the average loan yield by 34 basis points and the NIM by 14 basis points. The receipt of forgiveness payments on PPP loans during the fourth quarter accelerated the recognition of deferred fees. Management anticipates this trend to continue into the first quarter of 2021 as the forgiveness process for PPP loans under $150,000 is expected to be expedited. At December 31, 2020, the total recorded net investment in PPP loans was $221.2 million, of which $70.5 million, or 32%, were for amounts of $150,000 or less. Unrecognized PPP lender fees totaled $5.4 million at December 31, 2020.

Loan accretion income from acquired loans totaled $1.7 million for the fourth quarter of 2020, up $847,000, or 100%, compared to the third quarter of 2020. During the fourth quarter, the Company received pay-downs on an acquired CRE and residential mortgage loans, which accelerated the accretion of discount into interest income on loans.

The average yield on total interest-bearing deposits was 0.50% for the fourth quarter of 2020, down 10 basis points from the third quarter of 2020.

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%.

For the Three Months Ended

December 31, 2020 September 30, 2020

(dollars in Average Interest Average Average Interest Average thousands) Balance Yield/ RateBalance Yield/ Rate

Interest-earning assets:

Loans receivable$1,984,969$26,2675.20 %$1,971,174$24,7694.94 %

Investment 246,547 1,002 1.66 252,314 967 1.56 securities ^(TE)

Other interest-earning182,833 99 0.22 170,957 106 0.25 assets

Total interest-earning$2,414,349$27,3684.46 %$2,394,445$25,8424.25 %assets



Interest-bearing liabilities:

Deposits:

Savings, checking, and $1,217,430$970 0.32 %$1,195,455$1,136 0.38 %money market

Certificates of 375,597 1,017 1.08 381,949 1,232 1.28 deposit

Total interest-bearing1,593,027 1,987 0.50 1,577,404 2,368 0.60 deposits

Other borrowings5,539 53 3.81 5,539 53 3.81

FHLB advances 29,742 129 1.74 34,612 149 1.73

Total interest-bearing$1,628,308$2,169 0.53 %$1,617,555$2,570 0.63 %liabilities



Net interest 3.93 % 3.62 %spread ^(TE)

Net interest 4.11 % 3.82 %margin ^(TE)

Noninterest Income

Noninterest income for the fourth quarter of 2020 was $4.1 million, up $256,000, or 7%, from the third quarter of 2020 due primarily to gains on the sale of loans (up $178,000) and other income (up $97,000). Other income increased primarily due to fees earned on a risk participation agreement entered into during the fourth quarter of 2020.

Noninterest Expense

Noninterest expense for the fourth quarter of 2020 totaled $14.7 million, down $1.4 million, or 9%, compared to the third quarter of 2020.

The Company released $2.2 million of the allowance for credit losses on unfunded lending commitments during the fourth quarter of 2020, reflecting, among other factors, refinement of our estimate of future funding rates on unfunded lending commitments. The release of a portion of the allowance for unfunded loan commitments reduced noninterest expense by $1.3 million during the fourth quarter of 2020, with the remaining $940,000 of the release ($740,000 net of taxes) being recorded as an increase in retained earnings.

Compensation and benefits expense was down $323,000 from the third quarter of 2020 primarily due to the absence of bonuses, which were paid during the third quarter.

Regulatory fees were down $153,000 from the third quarter of 2020 due to a decrease in the FDIC assessment for the fourth quarter. The Company's improved financial condition led to a more favorable assessment rate.

Other expenses were up $198,000 from the third quarter of 2020 primarily due to certain loan servicing fees and expenses.

Capital and Liquidity

The Company's tangible common equity ratio was 10.23% and 9.93% at December 31, 2020 and September 30, 2020, respectively. At December 31, 2020, the Bank's preliminary Tier 1 leverage capital ratio was 9.68%, up 24 basis points from September 30, 2020, and preliminary total risk-based capital ratio was 15.18%, down 11 basis points from September 30, 2020. Loans covered under the PPP are included in the Bank's Tier 1 leverage capital ratio.

The following table summarizes the Company's primary and secondary sources of liquidity.

December 31,

(dollars in thousands) 2020

Cash and cash equivalents $187,952

Unpledged investment securities, amortized cost125,342

FHLB advance availability 787,232

Unsecured lines of credit 55,000

Federal Reserve discount window availability 500

Total primary and secondary liquidity $1,156,026

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.22 per share payable on February 19, 2021, to shareholders of record as of February 8, 2021.

The Company repurchased 91,612 shares of its common stock during the fourth quarter of 2020 at an average price per share of $26.23 under the Company's 2020 Repurchase Plan. An additional 300,080 shares remain eligible for purchase under the 2020 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $36.82 and $29.60, respectively, at December 31, 2020.

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 PPP loans. 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.



For the Three Months Ended

(dollars in thousands, except December 31, September 30,December 31, per share data) 2020 2020 2019



Reported net income $11,585 $8,782 $6,606

Add: Core deposit intangible 258 267 302 amortization, net tax

Non-GAAP tangible income $11,843 $9,049 $6,908



Total assets $2,591,850 $2,579,200 $2,200,465

Less: Intangible assets 63,112 63,439 64,472

Non-GAAP tangible assets $2,528,738 $2,515,761 $2,135,993



Total shareholders' equity $321,842 $313,324 $316,329

Less: Intangible assets 63,112 63,439 64,472

Non-GAAP tangible shareholders' $258,730 $249,885 $251,857 equity



Total loans $1,979,954 $1,955,297 $1,714,361

Less: PPP loans 221,220 254,487 -

Total loans excluding PPP loans $1,758,734 $1,700,810 $1,714,361



Allowance for loan losses to 1.66 %1.69 %1.04 %total loans

Less: PPP loans 0.21 0.25 -

Non-GAAP allowance for loan 1.87 %1.94 %1.04 %losses to total loans



Return on average equity 14.55 %11.17 %8.31 %

Add: Average intangible assets 4.04 3.27 2.62

Non-GAAP return on average 18.59 %14.44 %10.93 %tangible common equity



Common equity ratio 12.42 %12.15 %14.38 %

Less: Intangible assets 2.19 2.22 2.59

Non-GAAP tangible common equity 10.23 %9.93 %11.79 %ratio



Book value per share $36.82 $35.48 $34.19

Less: Intangible assets 7.22 7.18 6.97

Non-GAAP tangible book value per$29.60 $28.30 $27.22 share



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, 2019, as supplemented by its Current Report on Form 8-K dated April 28, 2020, 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) December 31,September 30,% December 31, 2020 2020 Change2019

Assets

Cash and cash equivalents $187,952 $ 185,836 1 %$39,847

Interest-bearing deposits 349 349 - 449 in banks

Investment securities available for sale, at 254,752 251,578 1 257,321 fair value

Investment securities held2,934 2,942 - 7,149 to maturity

Mortgage loans held for 9,559 21,045 (55) 6,990 sale

Loans, net of unearned 1,979,954 1,955,297 1 1,714,361 income

Allowance for loan losses (32,963) (33,002) - (17,868)

Total loans, net of 1,946,991 1,922,295 1 1,696,493 allowance for loan losses

Office properties and 45,497 45,696 - 46,425 equipment, net

Cash surrender value of 40,334 40,184 - 39,466 bank-owned life insurance

Goodwill and core deposit 63,112 63,439 (1) 64,472 intangibles

Accrued interest receivable and other 40,370 45,836 (12) 41,853 assets

Total Assets $2,591,850$ 2,579,200- $2,200,465





Liabilities

Deposits $2,213,821$ 2,207,494- %$1,820,975

Other Borrowings 5,539 5,539 - 5,539

Federal Home Loan Bank 28,824 31,445 (8) 40,620 advances

Accrued interest payable 21,824 21,398 2 17,002 and other liabilities

Total Liabilities 2,270,008 2,265,876 - 1,884,136



Shareholders' Equity

Common stock 87 88 (1) %93

Additional paid-in capital164,988 165,522 - 168,545

Common stock acquired by (2,789) (2,880) 3 (3,159) benefit plans

Retained earnings 154,282 145,373 6 150,158

Accumulated other 5,274 5,221 1 692 comprehensive income

Total Shareholders' Equity321,842 313,324 3 316,329

Total Liabilities and $2,591,850$ 2,579,200- $2,200,465Shareholders' Equity



HOME BANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

(Unaudited)

For the Three Months Ended

(dollars in December 31,September 30,% December 31,% thousands, except 2020 2020 Change2019 Change per share data)

Interest Income

Loans, including $26,267 $24,769 6 %$23,842 10 %fees

Investment 1,002 967 4 1,341 (25) securities

Other investments 99 106 (7) 261 (62) and deposits

Total interest 27,368 25,842 6 25,444 8 income

Interest Expense

Deposits 1,987 2,368 (16)%3,934 (49) %

Other borrowings 53 53 - 54 (2)

Federal Home Loan 129 149 (13) 198 (35) Bank advances

Total interest 2,169 2,570 (16) 4,186 (48) expense

Net interest 25,199 23,272 8 21,258 19 income

Provision for loan- - - 713 (100) losses

Net interest income after 25,199 23,272 8 20,545 23 provision for loan losses

Noninterest Income

Service fees and 1,117 1,123 (1) %1,544 (28) %charges

Bank card fees 1,273 1,331 (4) 1,102 16

Gain on sale of 1,082 904 20 316 242 loans, net

Income from bank-owned life 276 231 19 238 16 insurance

Loss on sale of - - - 1 (100) assets, net

Other income 302 205 47 298 1

Total noninterest 4,050 3,794 7 3,499 16 income

Noninterest Expense

Compensation and 9,417 9,740 (3) %9,438 - %benefits

Occupancy 1,719 1,686 2 1,713 -

Marketing and 386 288 34 579 (33) advertising

Data processing 1,913 1,851 3 1,829 5 and communication

Professional fees 187 197 (5) 172 9

Forms, printing 154 140 10 169 (9) and supplies

Franchise and 331 378 (12) 248 33 shares tax

Regulatory fees 373 526 (29) 113 230

Foreclosed assets,181 162 12 228 (21) net

Amortization of acquisition 327 338 (3) 382 (14) intangible

Provision for credit losses on (1,272) - - unfunded lending commitments

Other expenses 1,008 810 24 881 14

Total noninterest 14,724 16,116 (9) 15,752 (7) expense

Income before 14,525 10,950 33 8,292 75 income tax expense

Income tax expense2,940 2,168 36 1,686 74

Net income $11,585 $8,782 32 $6,606 75



Earnings per share$1.37 $1.01 36 %$0.74 85 %- basic

Earnings per share$1.36 $1.01 35 $0.73 86 - diluted



Cash dividends declared per $0.22 $0.22 - %$0.22 - %common share

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

(Unaudited)

For the Three Months Ended

(dollars in thousands, December 31, September 30,% December 31, % except per share2020 2020 Change2019 Change data)

EARNINGS DATA

Total interest $27,368 $25,842 6 %$25,444 8 %income

Total interest 2,169 2,570 (16) 4,186 (48) expense

Net interest 25,199 23,272 8 21,258 19 income

Provision for - - - 713 (100) loan losses

Total noninterest 4,050 3,794 7 3,499 16 income

Total noninterest 14,724 16,116 (9) 15,752 (7) expense

Income tax 2,940 2,168 36 1,686 74 expense

Net income $11,585 $8,782 32 $6,606 75



AVERAGE BALANCE SHEET DATA

Total assets $2,599,835 $2,582,239 1 %$2,219,049 17 %

Total interest-earning2,414,349 2,394,445 1 2,021,316 19 assets

Total loans 1,984,969 1,971,174 1 1,712,035 16

Total interest-bearing1,593,027 1,577,404 1 1,384,250 15 deposits

Total interest-bearing1,628,308 1,617,555 1 1,433,359 14 liabilities

Total deposits 2,226,526 2,208,825 1 1,835,026 21

Total shareholders' 316,679 312,841 1 315,487 - equity



SELECTED RATIOS ^(1)

Return on 1.77 %1.35 %31 %1.18 %50 %average assets

Return on 14.55 11.17 30 8.31 75 average equity

Common equity 12.42 12.15 2 14.38 (14) ratio

Efficiency ratio50.34 59.54 (15) 63.63 (21) ^(2)

Average equity to average 12.18 12.12 - 14.22 (14) assets

Tier 1 leverage capital ratio ^ 9.68 9.44 3 11.17 (13) (3)

Total risk-based capital ratio ^ 15.18 15.29 (1) 15.28 (1) (3)

Net interest 4.11 3.82 8 4.14 (1) margin ^(4)



SELECTED NON-GAAP RATIOS ^(1)

Tangible common equity ratio ^ 10.23 %9.93 %3 %11.79 %(13) %(5)

Return on average tangible18.59 14.44 29 10.93 70 common equity ^ (6)



PER SHARE DATA

Earnings per $1.37 $1.01 36 %$0.74 85 %share - basic

Earnings per 1.36 1.01 35 0.73 86 share - diluted

Book value at 36.82 35.48 4 34.19 8 period end

Tangible book value at period 29.60 28.30 5 27.22 9 end

Shares outstanding at 8,740,104 8,831,406 (1) 9,252,418 (6) period end

Weighted average shares outstanding

Basic 8,484,785 8,627,318 (2) %8,953,203 (5) %

Diluted 8,508,740 8,651,066 (2) 9,018,142 (6)



(1)With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.

The efficiency ratio represents noninterest expense as a percentage of(2)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.

Net interest margin represents net interest income as a percentage of (4)average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.

Tangible common equity ratio is common shareholders' equity less (5)intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.

Return on average tangible common equity is net income plus (6)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)

December 31, 2020 September 30, 2020 December 31, 2019

(dollars in Acquired OriginatedTotal Acquired OriginatedTotal Acquired OriginatedTotal thousands)

CREDIT QUALITY ^(1)(2)

Nonaccrual $8,748 $ 9,929 $18,677 $10,639$ 12,204$22,843 $9,758 $ 14,628$24,386 loans ^(3)

Accruing loans past due 90 - 2 2 - 10 10 - - - days and over

Total nonperforming 8,748 9,931 18,679 10,639 12,214 22,853 9,758 14,628 24,386 loans

Foreclosed 880 422 1,302 1,029 956 1,985 2,363 1,793 4,156 assets and ORE

Total nonperforming 9,628 10,353 19,981 11,668 13,170 24,838 12,121 16,421 28,542 assets

Performing troubled debt 573 1,512 2,085 480 910 1,390 475 1,903 2,378 restructurings

Total nonperforming assets and $10,201$ 11,865$22,066 $12,148$ 14,080$26,228 $12,596$ 18,324$30,920 troubled debt restructurings



Nonperforming assets to 0.77 % 0.96 % 1.30 %total assets

Nonperforming loans to total 0.72 0.89 1.11 assets

Nonperforming loans to total 0.94 1.17 1.42 loans

Allowance for loan losses to 164.97 132.87 62.60 nonperforming assets

Allowance for loan losses to 176.47 144.41 73.27 nonperforming loans

Allowance for loan losses to 1.66 1.69 1.04 total loans

Allowance for credit losses 1.74 1.87 1.04 to total loans ^(4)



Year-to-date loan $2,601 $2,522 $1,577 charge-offs

Year-to-date loan 335 295 83 recoveries

Year-to-date net loan $2,266 $2,227 $1,494 charge-offs

Annualized YTD net loan 0.12 % 0.16 % 0.09 %charge-offs to average loans



Nonperforming loans consist of nonaccruing loans and accruing loans 90 days or more past due. Due to the adoption of CECL, PCD loans of $390,000 and $2.1 million are included in nonperforming loans at December 31, 2020 and September 30, 2020, respectively. (1)Prior to January 1, 2020, these loans were classified as PCI and excluded from nonperforming loans because they continued to earn interest income from the accretable yield at the pool level. With the adoption of CECL, the pools were discontinued and performance is based on contractual terms for individual loans.

It is our policy to cease accruing interest on loans 90 days or more past due. Nonperforming assets consist of nonperforming (2)loans, foreclosed assets and other 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.

Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $6.5 million, $7.2 million and $7.6 million at December 31, 2020, September 30, 2020 and December 31, 2019, (3)respectively. Acquired restructured loans placed on nonaccrual totaled $3.5 million, $1.2 million and $2.2 million at December 31, 2020, September 30, 2020 and December 31, 2019, respectively.

The allowance for credit losses includes $1.4 million and $3.6 million for unfunded lending commitments at December 31, 2020 and(4)September 30, 2020, respectively. 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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SOURCE Home Bancorp, Inc.