Company: HBCP
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001436425-25-000018
Chunk: 72

Company: HOME BANCORP, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 8
Chunk 72
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 also ensuring adequate cash flow exists to meet the Company’s needs, including operating, strategic and capital. The Company develops its liquidity management strategies as part of its overall asset/liability management process. Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, investment securities and other investments, and other funds provided from operations. While scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds, deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. The Company also maintains excess funds in short-term, interest-bearing assets that provide additional liquidity.

The Company uses its liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At March 31, 2025, certificates of deposit maturing within the next 12 months totaled $708.2 million. Based upon historical experience, the Company anticipates that a significant portion of the maturing certificates of deposit will be redeposited with us.

In addition to cash flow from loan and securities payments and prepayments as well as from sales of securities available for sale, the Company has significant borrowing capacity available to fund liquidity needs. In recent years, the Company has utilized borrowings as a cost efficient addition to deposits as a source of funds. Borrowings consist of advances from the FHLB of Dallas, of which the Company is a member. Under terms of the collateral agreement with the FHLB, the Company pledges residential mortgage loans and investment securities as well as the Company’s stock in the FHLB as collateral for such advances. For the three months ended March 31, 2025, the average balance of outstanding FHLB advances was $180.7 million. At March 31, 2025, the Company had $163.3 million in total outstanding FHLB advances.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at March 31, 2025.

(dollars in thousands)March 31, 2025Cash and cash equivalents$110,662 Unencumbered investment securities, amortized cost68,179 FHLB advance availability1,140,061 Amounts available from unsecured lines of credit55,000 Federal Reserve discount window availability500 Total primary and secondary sources of available liquidity$1,374,402 

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