PR Newswire | Jul 28, 2020 07:31AM EDT

Dividend

07/28 06:30 CDT

Home Bancorp, Inc. Announces 2020 Second Quarter Results And Declares Quarterly Dividend LAFAYETTE, La., July 28, 2020

LAFAYETTE, La., July 28, 2020 /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 2020. For the quarter, the Company reported net income of $2.5 million, or $0.29 per diluted common share ("diluted EPS"), compared to $1.9 million, or $0.21 diluted EPS, for the first quarter of 2020.

"While the long-term impact of COVID-19's effect on our economy remains tremendously difficult to estimate," said John W. Bordelon, Chairman, President and Chief Executive Officer of the Company and the Bank, "I've admired how our customers have managed the short-term challenges they've faced. They have adjusted their operations in countless ways to ensure they continue to serve their clients as best they can. That said, the challenges they face are significant as the virus spreads and the economy continues to struggle."

"Just as the businesses we bank have stepped up to serve their clients, our bankers have done a wonderful job stepping up for our customers," continued Bordelon. "Over the past several months, our employees have been reminded time and time again of the critical role we play in our communities. Despite the uncertain road before us, the spirit within our company has never been higher. We will rise to meet the challenges ahead. We will serve one another, our customers and communities like never before."

COVID-19 Response

While banking operations have not been restrained by state and local government COVID-19 restrictions, we have adapted to protect our employees and customers by working remotely as much as possible, enhancing cleaning procedures, and enacting several other measures to reduce the risk of transmission of the virus.

The Company has been active in providing Small Business Administration ("SBA") Paycheck Protection Program ("PPP") loans. Through July 24, 2020, we have funded or are currently in the process of funding approximately 2,970 loans totaling $260.2 million under the PPP. At June 30, 2020, the total recorded net investment in PPP loans was $249.6 million.

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 first quarter Form 10-Q (as of May 8, 2020), the level of deferrals totaled $533.0 million, or 27% of total loans. As of July 24, 2020, the level of deferrals has decreased to $357.2 million, or 18% of total loans.

Second Quarter 2020 Highlights

* Loans grew by $226.8 million on a linked-quarter basis due primarily to PPP loans; * The provisions for loan losses and unfunded lending commitments totaled $7.0 million in the aggregate during the second quarter, reflecting our assessment of the change in expected losses due primarily to the economic impact of the COVID-19 pandemic; * The allowance for loan losses totaled $33.8 million, or 1.72% of total loans, at June 30, 2020. The allowance for credit losses ("ACL"), which includes the allowance for unfunded lending commitments, totaled $37.5 million, or 1.91% of total loans at June 30, 2020. Excluding PPP loans, the ratio of allowance for loan losses to total loans and the ratio for allowance for credit losses was 1.97% and 2.18%, respectively; * Preliminary Tier 1 leverage capital and total risk-based capital ratios were 9.11% and 14.83% at June 30, 2020, compared to 10.84% and 14.88% at March 31, 2020; * The net interest margin was 3.75% for the three months ended June 30, 2020, down 43 basis points from the first quarter of 2020. The net interest margin for the second quarter includes the impact of PPP loans and higher level of cash and cash equivalents during the quarter; and * The average yield on total interest-bearing deposits was 0.78% in the second quarter of 2020, down 29 basis points from the first quarter of 2020.

Loans

Total loans grew by $226.8 million, or 13%, from March 31, 2020 to June 30, 2020, due to PPP loans. Excluding PPP loans, loans decreased by $22.8 million, or 1%, during the quarter. The following table summarizes the changes in the Company's loan portfolio from March 31, 2020 to June 30, 2020.

June 30, March 31, Increase/(Decrease)

(dollars in thousands) 2020 2020^(1) Amount Percent

Real estate loans:

One- to four-family first $431,999 $447,718 $(15,719)(4)% mortgage

Home equity loans and lines 72,956 78,011 (5,055) (6)

Commercial real estate 689,942 691,358 (1,416) -

Construction and land 203,592 205,542 (1,950) (1)

Multi-family residential 81,635 74,982 6,653 9

Total real estate loans 1,480,124 1,497,611 (17,487) (1)

Other loans:

Commercial and industrial 444,728 198,261 246,467 124

Consumer 41,073 43,270 (2,197) (5)

Total other loans 485,801 241,531 244,270 101

Total loans $1,965,925$1,739,142$226,783 13 %





(1)Certain reclassifications have been made to prior period balances to conform to the current period presentation.

At June 30, 2020, the total recorded investment in PPP loans was $249.6 million. This amount is net of $8.5 million in deferred lender fees, which will be amortized into interest income over the life of the loans (on a contractual basis, approximately 2 years on average).

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $28.0 million, or 1.06% of total assets, and $29.5 million, or 1.31% of total assets, at June 30, 2020 and March 31, 2020, respectively. The Company recorded net loan charge-offs of $1.1 million during the second quarter of 2020, compared to net loan charge-offs of $268,000 for the first quarter of 2020. The increase in net loan charge-offs during the second quarter was primarily due to $658,000 in charge-offs related to an acquired farm loan relationship and $385,000 in charge-offs related to an acquired energy loan relationship. Both relationships were classified as substandard prior to the COVID-19 crisis.

Beginning in March 2020, in response to the economic challenges brought on by the COVID-19 crisis, we began offering our borrowers payment relief options primarily in the form of deferrals of principal and/or interest payments for an initial term of up to three months. When we last reported the level of such deferrals in our first quarter Form 10-Q (as of May 8), the level of deferrals totaled $533.0 million, or 27% of total loans. As of July 24, 2020 the level of deferrals has decreased to $357.2 million, or 18% of total loans.

The provision for loan losses for the second quarter of 2020 totaled $6.5 million, up $214,000 from the first quarter of 2020. The second quarter provision for loan losses reflects our assessment of the change in expected losses due primarily to the current and anticipated economic impact of the COVID-19 pandemic. 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.

The following table provides a summary of the loan portfolio at June 30, 2020, stratified by certain selected industry segments, and related reserve builds during the six months ended June 30, 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.

Reserve Builds^(1) for the ACL to ACL to Total Loans PPP Loans Total ACL Total Loans Total Non-PPP Quarters Ended Loans

(dollars inJune 30, 2020June 30, 2020March 31, 2020June 30, 2020June 30, 2020June 30, 2020June 30, 2020thousands)



Retail CRE $ 191,761 $- $ 744 $ 4,380 $7,108 3.71 % 3.71 %

Hotels and short-term 90,137 3,979 1,885 1,517 4,313 4.78 5.01 rentals

Restaurants95,352 30,865 545 1,382 2,601 2.73 4.03 and bars

Energy 29,225 - 1,204 (101) 1,614 5.52 5.52

Credit 3,831 - 327 (32) 383 10.00 10.00 cards

Other loans1,555,619 214,779 1,284 (1,813) 17,804 1.14 1.33

Total $ 1,965,925$249,623 $ 5,989 $ 5,333 $33,823 1.72 % 1.97 %



Unfunded lending - - 729 543 3,637 - - commitments ^(2)

Total $ 1,965,925$249,623 $ 6,718 $ 5,876 $37,460 1.91 % 2.18 %





"Reserve build" represents the amount by which the provisions for credit losses on loans and unfunded lending commitments exceed net loan (1)charge-offs. For the quarters ended June 30, 2020 and March 31, 2020, the provision for credit losses totaled $7.0 million, and net loan charge-offs were $1.1 million and $268,000, respectively.

At June 30, 2020, the allowance of $3.6 million related to unfunded (2)lending commitments of $336.3 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 June 30, 2020.

(dollars in thousands) Recorded Investment

Available-for-sale

U.S. agency mortgage-backed $115,743

Collateralized mortgage obligations117,643

Municipal bonds 15,099

U.S. government agency 6,532

Corporate bonds 1,905

Total available-for-sale 256,922

Held to Maturity

Municipal Bonds 4,333

Total investment securities $261,255

Securities available-for-sale ("AFS") made up 98% of total investment securities and net unrealized gains on AFS securities totaled $6.7 million at June 30, 2020.

Deposits

Total deposits increased $409.2 million, or 22.0%, from March 31, 2020 to $2.3 billion at June 30, 2020. Customers who received PPP loans increased their deposit balances by a net of $210.2 million during the second quarter of 2020. The following table summarizes the changes in the Company's deposits from March 31, 2020 to June 30, 2020.

June 30, March 31, Increase/(Decrease)

(dollars in thousands) 2020 2020 Amount Percent

Demand deposits $647,789 $455,512 $192,27742 %

Savings 237,168 206,597 30,571 15

Money market 305,668 266,519 39,149 15

NOW 688,336 536,643 151,693 28

Certificates of deposit387,743 392,230 (4,487) (1)

Total deposits $2,266,704$1,857,501$409,20322 %

The average rate on interest-bearing deposits decreased 29 basis points from 1.07% for the first quarter of 2020 to 0.78% for the second quarter of 2020. At June 30, 2020, certificates of deposit maturing within the next 12 months totaled $291.0 million.

Net Interest Income

The net interest margin ("NIM") decreased 43 basis points from 4.18% for the first quarter of 2020 to 3.75% for the second quarter of 2020 primarily due to a decrease in the yield on interest-earning assets, which was down 66 basis points from the first quarter of 2020. Outstanding PPP loans negatively impacted the average loan yield by 23 basis points and the NIM by 7 basis points during the second quarter. During the second quarter of 2020, $882,000 of PPP lender fees were recognized in loan interest income. The remaining balance of $8.5 million in deferred lender fees will be amortized into interest income over the life of the PPP loans. A $170.2 million, or 265%, increase in cash and cash equivalents at June 30, 2020 compared to March 31, 2020, resulted in higher average other interest-earning assets due primarily to the growth in deposits. The increase in cash and cash equivalents negatively impacted the average yield on total interest-earning assets and the NIM by 30 and 26 basis points, respectively.

Loan accretion income from acquired loans totaled $746,000 during the second quarter of 2020, down $64,000 from $810,000 for the first quarter of 2020. At June 30, 2020, variable rate loans totaled $453.6 million, or 23% of total loans.

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

June 30, 2020 March 31, 2020

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

Interest-earning assets:

Loans receivable$1,934,627$24,3715.00 %$1,735,224$23,6995.43 %

Investment 256,069 1,182 1.88 263,040 1,412 2.19 securities^ (TE)

Other interest-earning186,127 117 0.25 28,002 138 1.99 assets

Total interest-earning$2,376,823$25,6704.30 %$2,026,266$25,2494.96 %assets



Interest-bearing liabilities:

Deposits:

Savings, checking, and $1,157,239$1,347 0.47 %$989,028 $1,822 0.74 %money market

Certificates of 391,380 1,665 1.71 392,670 1,845 1.89 deposit

Total interest-bearing1,548,619 3,012 0.78 1,381,698 3,667 1.07 deposits

Other borrowings5,539 53 3.86 5,539 53 3.86

FHLB advances 70,460 188 1.07 45,729 206 1.80

Total interest-bearing$1,624,618$3,253 0.80 %$1,432,966$3,926 1.10 %liabilities



Net interest 3.50 % 3.86 %spread^ (TE)

Net interest 3.75 % 4.18 %margin^ (TE)

Noninterest Income

Noninterest income for the second quarter of 2020 totaled $3.1 million, down $255,000, or 8%, from the first quarter of 2020 due primarily to a decrease in service fees and charges (down $522,000), which was partially offset by an increase in the gain on the sale of loans (up $345,000). Service fees and charges decreased primarily due to a decline in income from overdraft fees on deposit accounts.

Noninterest Expense

Noninterest expense for the second quarter of 2020 totaled $16.0 million, down $151,000, or 1%, from the first quarter of 2020. The decrease in noninterest expense was primarily due to decreases in the provision for credit losses on unfunded lending commitments (down $187,000) and marketing and advertising expenses (down $138,000) for the second quarter of 2020, partially offset by an increase in regulatory fees (up $246,000) as FDIC assessment credits were exhausted during the first quarter.

Capital and Liquidity

The Company's tangible common equity ratio was 9.54% and 11.32% at June 30, 2020 and March 31, 2020, respectively. At June 30, 2020, the Bank's preliminary Tier 1 leverage capital ratio was 9.11%, down 173 basis points from March 31, 2020, and preliminary total risk-based capital ratio was 14.83%, down five basis points from March 31, 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.

June 30,

(dollars in thousands) 2020

Cash and cash equivalents $234,255

Unpledged investment securities, amortized cost113,386

FHLB advance availability 729,531

Unsecured lines of credit 55,000

Federal Reserve discount window availability 500

Total primary and secondary liquidity $1,132,672

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 August 21, 2020, to shareholders of record as of August 10, 2020.

The Company repurchased 115,327 shares of its common stock during the second quarter of 2020 at an average price per share of $24.69, or an aggregate of $2.8 million, under the Company's 2019 Repurchase Plan. An additional 82,916 shares remain eligible for purchase under the 2019 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $34.50 and $27.39, respectively, at June 30, 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 June 30, 2020March 31, 2020 June 30, 2019per share data)



Reported net income $2,493 $ 1,905 $6,580

Add: Core deposit intangible 270 279 314 amortization, net tax

Non-GAAP tangible income $2,763 $ 2,184 $6,894



Total assets $2,636,896 $ 2,248,601 $2,220,386

Less: Intangible assets 63,777 64,119 65,247

Non-GAAP tangible assets $2,573,119 $ 2,184,482 $2,155,139



Total shareholders' equity $309,326 $ 311,497 $313,494

Less: Intangible assets 63,777 64,119 65,247

Non-GAAP tangible shareholders' $245,549 $ 247,378 $248,247 equity



Total loans $1,965,925 $ 1,739,142 $1,692,948

Less: PPP loans 249,623 - -

Total loans excluding PPP loans $1,716,302 $ 1,739,142 $1,692,948



Allowance for loan losses to 1.72 %1.64 % 1.02 %total loans

Less: PPP loans 0.25 - -

Non-GAAP allowance for loan 1.97 %1.64 % 1.02 %losses to total loans



Return on average equity 3.20 %2.43 % 8.48 %

Add: Average intangible assets 1.25 1.07 2.77

Non-GAAP return on average 4.45 %3.50 % 11.25 %tangible common equity



Common equity ratio 11.73 %13.85 % 14.12 %

Less: Intangible assets 2.19 2.53 2.60

Non-GAAP tangible common equity 9.54 %11.32 % 11.52 %ratio



Book value per share $34.50 $ 34.35 $33.20

Less: Intangible assets 7.11 7.07 6.91

Non-GAAP tangible book value per$27.39 $ 27.28 $26.29 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) June 30, 2020March 31, % June 30, 2019 2020 Change

Assets

Cash and cash equivalents $ 234,255 $64,102 265 %$ 71,325

Interest-bearing deposits 449 449 - 694 in banks

Investment securities available for sale, at 256,922 265,646 (3) 261,626 fair value

Investment securities held4,333 6,607 (34) 8,163 to maturity

Mortgage loans held for 13,359 9,753 37 4,501 sale

Loans, net of unearned 1,965,925 1,739,142 13 1,692,948 income

Allowance for loan losses (33,823) (28,490) 19 (17,239)

Total loans, net of 1,932,102 1,710,652 13 1,675,709 allowance for loan losses

Office properties and 45,967 46,541 (1) 47,698 equipment, net

Cash surrender value of 39,953 39,725 1 39,927 bank-owned life insurance

Goodwill and core deposit 63,777 64,119 (1) 65,247 intangibles

Accrued interest receivable and other 45,779 41,007 12 45,496 assets

Total Assets $ 2,636,896$2,248,60117 $ 2,220,386





Liabilities

Deposits $ 2,266,704$1,857,50122 %$ 1,829,169

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

Federal Home Loan Bank 35,041 54,319 (35) 54,615 advances

Accrued interest payable 20,286 19,745 3 17,569 and other liabilities

Total Liabilities 2,327,570 1,937,104 20 1,906,892



Shareholders' Equity

Common stock 90 91 (1) %94

Additional paid-in capital166,494 167,249 - 169,233

Common stock acquired by (2,970) (3,063) 3 (3,351) benefit plans

Retained earnings 140,582 141,798 (1) 146,348

Accumulated other 5,130 5,422 (5) 1,170 comprehensive income

Total Shareholders' Equity309,326 311,497 (1) 313,494

Total Liabilities and $ 2,636,896$2,248,60117 $ 2,220,386Shareholders' Equity

HOMEBANCORP, INC. AND SUBSIDIARY

CONDENSED STATEMENTS OF INCOME

(Unaudited)



For the Three Months Ended

(dollars in thousands, June 30, 2020March 31, 2020% June 30, 2019% except per share Change Changedata)

Interest Income

Loans, including$24,371 $23,699 3 %$23,812 2 %fees

Investment 1,182 1,412 (16) 1,729 (32) securities

Other investments and 117 138 (15) 380 (69) deposits

Total interest 25,670 25,249 2 25,921 (1) income



Interest Expense

Deposits 3,012 3,667 (18) %3,735 (19)%

Other borrowings53 53 - 53 -

Federal Home Loan Bank 188 206 (9) 258 (27) advances

Total interest 3,253 3,926 (17) 4,046 (20) expense

Net interest 22,417 21,323 5 21,875 2 income

Provision for 6,471 6,257 3 765 746 loan losses

Net interest income after 15,946 15,066 6 21,110 (24) provision for loan losses



Noninterest Income

Service fees and942 1,464 (36) %1,413 (33)%charges

Bank card fees 1,127 1,137 (1) 1,212 (7)

Gain on sale of 642 297 116 248 159 loans, net

Income from bank-owned life 228 259 (12) 202 13 insurance

(Loss) gain on sale of assets, (13) 2 (750) (327) 96 net

Other income 177 199 (11) 229 (23)

Total noninterest 3,103 3,358 (8) 2,977 4 income



Noninterest Expense

Compensation and9,362 9,416 (1) %9,613 (3) %benefits

Occupancy 1,653 1,736 (5) 2,008 (18)

Marketing and 160 298 (46) 308 (48) advertising

Data processing and 1,760 1,819 (3) 1,596 10 communication

Professional 255 213 20 218 17 fees

Forms, printing 160 171 (6) 181 (12) and supplies

Franchise and 389 389 - 398 (2) shares tax

Regulatory fees 362 116 212 283 28

Foreclosed 145 17 753 40 263 assets, net

Amortization of acquisition 342 353 (3) 398 (14) intangible

Provision for credit losses on542 729 (26) - - unfunded lending commitments

Other expenses 865 889 (3) 909 (5)

Total noninterest 15,995 16,146 (1) 15,952 - expense

Income before income tax 3,054 2,278 34 8,135 (62) expense

Income tax 561 373 50 1,555 (64) expense

Net income $2,493 $1,905 31 $6,580 (62)



Earnings per $0.29 $0.21 38 %$0.72 (60)%share - basic

Earnings per $0.29 $0.21 38 $0.71 (59) share - diluted



Cash dividends declared per $0.22 $0.22 - %$0.21 5 %common share

HOME BANCORP, INC. AND SUBSIDIARY

SUMMARY FINANCIAL INFORMATION

(Unaudited)



For the Three Months Ended

(dollars in thousands, June 30, 2020March 31, 2020 % June 30, 2019% except per share Change Changedata)



EARNINGS DATA

Total interest $25,670 $ 25,249 2 %$25,921 (1) %income

Total interest 3,253 3,926 (17) 4,046 (20) expense

Net interest 22,417 21,323 5 21,875 2 income

Provision for 6,471 6,257 3 765 746 loan losses

Total noninterest 3,103 3,358 (8) 2,977 4 income

Total noninterest 15,995 16,146 (1) 15,952 - expense

Income tax 561 373 50 1,555 (64) expense

Net income $2,493 $ 1,905 31 $6,580 (62)



AVERAGE BALANCE SHEET DATA

Total assets $2,571,004 $ 2,219,114 16 %$2,190,604 17 %

Total interest-earning2,376,823 2,026,266 17 1,993,067 19 assets

Total loans 1,934,627 1,735,224 11 1,665,841 16

Total interest-bearing1,548,619 1,381,698 12 1,368,694 13 deposits

Total interest-bearing1,624,618 1,432,966 13 1,431,415 13 liabilities

Total deposits 2,155,963 1,833,848 18 1,810,377 19

Total shareholders' 313,650 315,607 (1) 311,308 1 equity



SELECTED RATIOS ^(1)

Return on 0.39 %0.35 % 11 %1.20 %(68)%average assets

Return on 3.20 2.43 32 8.48 (62) average equity

Common equity 11.73 13.85 (15) 14.12 (17) ratio

Efficiency ratio62.67 65.42 (4) 64.19 (2) ^(2)

Average equity to average 12.20 14.22 (14) 14.21 (14) assets

Tier 1 leverage capital ratio ^ 9.11 10.84 (16) 11.15 (18) (3)

Total risk-based capital ratio ^ 14.83 14.88 - 15.33 (3) (3)

Net interest 3.75 4.18 (10) 4.36 (14) margin ^(4)





SELECTED NON-GAAP RATIOS ^(1)

Tangible common equity ratio ^ 9.54 %11.32 % (16)%11.52 %(17)%(5)

Return on average tangible4.45 3.50 27 11.25 (60) common equity ^ (6)



PER SHARE DATA

Earnings per $0.29 $ 0.21 38 %$0.72 (60)%share - basic

Earnings per 0.29 0.21 38 0.71 (59) share - diluted

Book value at 34.50 34.35 - 33.20 4 period end

Tangible book value at period 27.39 27.28 - 26.29 4 end

Shares outstanding at 8,966,101 9,067,920 (1) 9,441,800 (5) period end

Weighted average shares outstanding

Basic 8,701,730 8,883,261 (2) %9,155,074 (5) %

Diluted 8,730,437 8,927,448 (2) 9,207,880 (5)



(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)Estimated capital ratios are end of period ratios for the Bank only.

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)

June 30, 2020 March 31, 2020 June 30, 2019

(dollars in OriginatedAcquired Total OriginatedAcquired Total OriginatedAcquired Total thousands)

CREDIT QUALITY ^(1) (2)

Nonaccrual $ 14,126$10,966$25,092 $ 15,235$11,686$26,921 $ 15,027$10,945$25,972 loans^(3)

Accruing loans past due 90 - 906 906 - - - - - - days and over

Total nonperforming 14,126 11,872 25,998 15,235 11,686 26,921 15,027 10,945 25,972 loans

Foreclosed 1,060 914 1,974 978 1,628 2,606 87 1,893 1,980 assets and ORE

Total nonperforming 15,186 12,786 27,972 16,213 13,314 29,527 15,114 12,838 27,952 assets

Performing troubled debt 917 457 1,374 989 695 1,684 1,080 217 1,297 restructurings

Total nonperforming assets and $ 16,103$13,243$29,346 $ 17,202$14,009$31,211 $ 16,194$13,055$29,249 troubled debt restructurings



Nonperforming assets to 1.06 % 1.31 % 1.26 %total assets

Nonperforming loans to total 0.99 1.20 1.17 assets

Nonperforming loans to total 1.32 1.55 1.53 loans

Allowance for loan losses to 120.92 96.49 61.67 nonperforming assets

Allowance for loan losses to 130.10 105.83 66.38 nonperforming loans

Allowance for loan losses to 1.72 1.64 1.02 total loans

Allowance for credit losses 1.91 1.82 1.02 to total loans ^(4)



Year-to-date loan $1,627 $388 $288 charge-offs

Year-to-date loan 221 120 24 recoveries

Year-to-date net loan $1,406 $268 $264 charge-offs

Annualized YTD net loan 0.15 % 0.06 % 0.03 %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 $2.1 million and $2.3 million are included in nonperforming loans at June 30, 2020 and March 31, 2020, (1)respectively. 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 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.



Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $8.1 million, $8.7 million and $9.9 million (3)at June 30, 2020, March 31, 2020 and June 30, 2019, respectively. Acquired restructured loans placed on nonaccrual totaled $2.2 million, $2.8 million and $1.9 million at June 30, 2020, March 31, 2020 and June 30, 2019, respectively.



The allowance for credit losses includes $3.6 million and $3.1 million for unfunded lending commitments at June 30, 2020 and (4)March 31, 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.