LAFAYETTE, La., July 17, 2024 /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 2024. For the quarter, the Company reported net income of $8.1 million, or $1.02 per diluted common share ("diluted EPS"), down $1.1 million from $9.2 million, or $1.14 diluted EPS, for the first quarter of 2024. "We are pleased to report strong earnings and continued momentum across our footprint in loan growth," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "The Company's loan growth was 6% on an annualized basis for the second quarter while maintaining a strong credit discipline. Our net interest margin remains strong and has positively changed direction in the quarter."  Second Quarter 2024 Highlights Loans totaled $2.7 billion at June 30, 2024, up $39.7 million, or 1.5% (6% on an annualized basis), from March 31, 2024. Non-interest bearing deposits totaled $746.5 million at June 30, 2024, up $4.3 million, or 0.6% (2% on an annualized basis), from March 31, 2024. Net interest income in the second quarter of 2024 totaled $29.4 million, up $492,000, or 2% from the prior quarter. The net interest margin ("NIM") was 3.66% in the second quarter of 2024 compared to 3.64% in the first quarter of 2024. Nonperforming assets totaled $17.0 million, or 0.50% of total assets, at June 30, 2024 compared to $22.0 million, or 0.65% of total assets, at March 31, 2024. The Company recorded a $1.3 million provision to the allowance for loan losses in the second quarter of 2024, compared to a $141,000 provision in the first quarter of 2024, primarily due to loan growth sustained during the quarter and net charge offs. Net loan charge-offs were $510,000 for the second quarter of 2024, compared to net loan charge-offs of $217,000 during the first quarter of 2024. Annualized year-to-date net loan charge offs to average loans was 0.06%. Loans Loans totaled $2.7 billion at June 30, 2024, up $39.7 million, or 1.5%, from March 31, 2024. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from March 31, 2024 through June 30, 2024.  (dollars in thousands) 6/30/2024 3/31/2024 Increase (Decrease) Real estate loans: One- to four-family first mortgage $           446,255 $           436,659 $       9,596 2 % Home equity loans and lines 70,617 70,377 240 — Commercial real estate 1,228,757 1,221,573 7,184 1 Construction and land 328,938 334,324 (5,386) (2) Multi-family residential 126,922 118,748 8,174 7 Total real estate loans 2,201,489 2,181,681 19,808 1 Other loans: Commercial and industrial 427,339 407,730 19,609 5 Consumer 32,518 32,279 239 1 Total other loans 459,857 440,009 19,848 5 Total loans $        2,661,346 $        2,621,690 $     39,656 2 %   The average loan yield was 6.28% for the second quarter of 2024, up 10 basis points, from the first quarter of 2024. Loan growth during the second quarter of 2024 was across all loan types with the exception of construction and land loans.  Loans grew in the second quarter of 2024 across most of our markets with approximately 40% of the growth attributable to the Houston market. Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs") totaled $17.0 million, or 0.50% of total assets, at June 30, 2024, down $4.9 million, or 22%, from $22.0 million, or 0.65% of total assets, at March 31, 2024. The decrease in NPAs during the second quarter of 2024 was primarily due to one loan relationship which was brought current during the second quarter of 2024, but was classified as accruing nonperforming loans over 90 days past due in the prior quarter. During the second quarter of 2024, the Company recorded net loan charge-offs of $510,000, compared to net loan charge-offs of $217,000 during the first quarter of 2024. The Company provisioned $1.3 million to the allowance for loan losses in the second quarter of 2024. At June 30, 2024, the allowance for loan losses totaled $32.2 million, or 1.21% of total loans, compared to $31.5 million, or 1.20% of total loans, at March 31, 2024. 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, 2024 and March 31, 2024. June 30, 2024 (dollars in thousands) Pass Special Mention Substandard Total One- to four-family first mortgage $         437,753 $              1,417 $              7,085 $         446,255 Home equity loans and lines 70,394 — 223 70,617 Commercial real estate 1,207,421 3,469 17,867 1,228,757 Construction and land 324,729 310 3,899 328,938 Multi-family residential 125,689 65 1,168 126,922 Commercial and industrial 423,673 1,493 2,173 427,339 Consumer 32,273 — 245 32,518   Total $      2,621,932 $              6,754 $           32,660 $      2,661,346 March 31, 2024 (dollars in thousands) Pass Special Mention Substandard Total One- to four-family first mortgage $         429,488 $                 865 $              6,306 $         436,659 Home equity loans and lines 70,136 — 241 70,377 Commercial real estate 1,204,466 — 17,107 1,221,573 Construction and land 322,792 6,565 4,967 334,324 Multi-family residential 114,315 — 4,433 118,748 Commercial and industrial 404,786 1,148 1,796 407,730 Consumer 32,001 — 278 32,279   Total $      2,577,984 $              8,578 $           35,128 $      2,621,690   Investment Securities The Company's investment securities portfolio totaled $413.5 million at June 30, 2024, a decrease of $9.3 million, or 2%, from March 31, 2024. At June 30, 2024, the Company had a net unrealized loss position on its investment securities of $46.6 million, which was essentially unchanged from the net unrealized loss March 31, 2024. The Company's investment securities portfolio had an effective duration of 4.0 years and 4.2 years at June 30, 2024 and March 31, 2024, respectively. The following table summarizes the composition of the Company's investment securities portfolio at June 30, 2024. (dollars in thousands) AmortizedCost Fair Value Available for sale: U.S. agency mortgage-backed $       300,106 $       267,440 Collateralized mortgage obligations 79,469 75,569 Municipal bonds 53,676 45,700 U.S. government agency 18,794 17,553 Corporate bonds 6,983 6,210 Total available for sale $       459,028 $       412,472 Held to maturity: Municipal bonds $           1,065 $           1,061 Total held to maturity $           1,065 $           1,061   Approximately 65% of the investment securities portfolio was pledged as of June 30, 2024 to secure public deposits and borrowings with the Federal Reserve Bank Term Funding Program ("BTFP"). The Company had $135.5 million of securities pledged to secure public deposits and $135.0 million pledged to the BTFP borrowings at June 30, 2024 and March 31, 2024. Deposits Total deposits were $2.7 billion at June 30, 2024, up $337,000, or less than 1%, from March 31, 2024. Non-maturity deposits decreased $16.7 million, or 1%, during the second quarter of 2024 to $2.0 billion. The following table summarizes the changes in the Company's deposits from March 31, 2024 to June 30, 2024. (dollars in thousands) 6/30/2024 3/31/2024 Increase (Decrease) Demand deposits $           746,504 $           742,177 $                4,327 1 % Savings 218,307 228,047 (9,740) (4) Money market 427,406 423,521 3,885 1 NOW 615,809 630,962 (15,153) (2) Certificates of deposit 714,889 697,871 17,018 2 Total deposits $        2,722,915 $        2,722,578 $                   337 — %   The average rate on interest-bearing deposits increased 17 basis points from 2.52% for the first quarter of 2024 to 2.69% for the second quarter of 2024. At June 30, 2024, certificates of deposit maturing within the next 12 months totaled $686.2 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, 2024 March 31, 2024 Individuals 53 % 54 % Small businesses 37 36 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 $780.1 million at June 30, 2024 and $781.9 million at March 31, 2024. Public funds in excess of the FDIC insurance limits are fully collateralized. Net Interest Income The net interest margin ("NIM") increased 2 basis points from 3.64% for the first quarter of 2024 to 3.66% for the second quarter of 2024 primarily due to the increase in average interest-earning assets outpacing the increase in average interest-bearing liabilities. The average loan yield was 6.28% for the second quarter of 2024, up 10 basis points from the first quarter of 2024, primarily due to new loan originations at higher market rates during the quarter. The average cost of interest-bearing deposits increased by 17 basis points in the second quarter of 2024 compared to the first quarter of 2024. The increase in deposit costs reflects the rise in market rates of interest as well as a migration to interest-bearing deposits from non-interest bearing deposits. Average other interest-earning assets were $51.4 million for the second quarter of 2024, down $5.7 million, or 10%, from the first quarter of 2024 primarily due to a reallocation of certain other interest-earning assets. Loan accretion income from acquired loans totaled $490,000 for the second quarter of 2024, down $35,000, or 7%, from the first quarter of 2024. 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 6/30/2024 3/31/2024 (dollars in thousands) AverageBalance Interest AverageYield/ Rate AverageBalance Interest AverageYield/ Rate Interest-earning assets: Loans receivable $  2,652,331 $       41,999 6.28 % $  2,602,941 $       40,567 6.18 % Investment securities (TE) 463,500 2,740 2.38 472,578 2,788 2.38 Other interest-earning assets 51,355 719 5.64 57,103 771 5.43 Total interest-earning assets $  3,167,186 $       45,458 5.70 % $  3,132,622 $       44,126 5.60 % Interest-bearing liabilities: Deposits: Savings, checking, and money market $  1,260,491 $          5,108 1.63 % $  1,269,293 $          4,800 1.52 % Certificates of deposit 704,690 8,026 4.58 668,353 7,332 4.41 Total interest-bearing deposits 1,965,181 13,134 2.69 1,937,646 12,132 2.52 Other borrowings 140,610 1,656 4.74 125,979 1,486 4.74 Subordinated debt 54,322 844 6.22 54,268 845 6.22 FHLB advances 46,499 431 3.69 71,704 762 4.23 Total interest-bearing liabilities $  2,206,612 $       16,065 2.93 % $  2,189,597 $       15,225 2.79 % Noninterest-bearing deposits $       751,776 $       743,262 Net interest spread (TE) 2.77 % 2.81 % Net interest margin (TE) 3.66 % 3.64 %   Noninterest Income Noninterest income for the second quarter of 2024 totaled $3.8 million, up $206,000, or 6%, from the first quarter of 2024. The increase was related primarily to bank card fees (up $176,000) and gain on sale of loans (up $39,000), which were partially offset by service fees and charges (down $15,000) for the second quarter of 2024 compared to the first quarter of 2024. Noninterest Expense Noninterest expense for the second quarter of 2024 totaled $21.8 million, up $940,000, or 5%, from the first quarter of 2024. The increase was primarily related to compensation and benefits expense (up $618,000 due to salary increases effective in April 2024), occupancy expense (up $149,000 due to an additional lease for our new Pasadena office in the Houston market and seasonal lawn care maintenance), other noninterest expense (up $119,000), and professional fees (up $106,000), which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $134,000) during the second quarter of 2024. Capital and Liquidity At June 30, 2024, shareholders' equity totaled $375.8 million, up $3.5 million, or 1%, compared to $372.3 million at March 31, 2024. The increase was primarily due to the the Company's earnings of $8.1 million during the second quarter of 2024, partially offset by shareholder dividends and repurchases of shares of the Company's common stock. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.22% and 14.39%, respectively, at June 30, 2024, compared to 11.19% and 14.39%, respectively, at March 31, 2024. The following table summarizes the Company's primary and secondary sources of liquidity which were available at June 30, 2024. (dollars in thousands) June 30, 2024 Cash and cash equivalents $                            113,462 Unencumbered investment securities, amortized cost 68,373 FHLB advance availability 1,085,415 Amounts available from unsecured lines of credit 55,000 Federal Reserve discount window availability 500 Total primary and secondary sources of available liquidity $                         1,322,750   Dividend and Share Repurchases The Company announces that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.25 per share payable on August 9, 2024, to shareholders of record as of July 29, 2024.  The Company repurchased 76,858 shares of its common stock during the second quarter of 2024 at an average price per share of $37.00. An additional 338,285 shares remain eligible for purchase under the 2023 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $46.51 and $35.90, respectively, at June 30, 2024. Conference Call Executive management will host a conference call to discuss second quarter 2024 results on Thursday, July 18, 2024 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (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 ...