Company: HBCP
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001436425-25-000018
Chunk: 66

Company: HOME BANCORP, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 66
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 31, 2024Increase/(Decrease)Special Mention LoansOne- to four-family first mortgage$820 $823 $(3)(0.4)%Home equity loans and lines— — — — Commercial real estate— — — — Construction and land— — — — Multi-family residential— — — — Commercial and industrial— — — — Consumer— — — — Total special mention loans$820 $823 $(3)(0.4)%

(dollars in thousands)March 31, 2025December 31, 2024Increase/(Decrease)Substandard LoansOne- to four-family first mortgage$6,842 $7,034 $(192)(2.7)%Home equity loans and lines372 279 93 33.3 Commercial real estate18,444 18,541 (97)(0.5)Construction and land5,714 5,224 490 9.4 Multi-family residential1,256 930 326 35.1 Commercial and industrial3,621 3,755 (134)(3.6)Consumer160 27 133 492.6 Total substandard loans$36,409 $35,790 $619 1.7 %Total nonperforming loans increased by $5.4 million, or 40.1%, to $19.0 million at March 31, 2025, compared to $13.6 million at December 31, 2024. The primary reason for the increase was two loan relationships with an aggregate outstanding balance of $5.6 million at March 31, 2025 that became nonperforming during the first quarter of 2025. 

A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines. 

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Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all