Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 87

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 87
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 $185,000).

Noninterest expense for the six months ended June 30, 2025 totaled $44.0 million, up $1.3 million, or 3.1%, from the same period in 2024. Noninterest expense increased over the comparable quarters primarily due to an increase in compensation and benefits (up $1.0 million, primarily due to increases in salaries), other expenses (up $821,000, primarily due to a write off of an acquired SBA accounts receivable for guarantees) and foreclosed assets, net (up $492,000), which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $836,000, primarily due to lower unfunded commitment levels).

Income Taxes

Income tax expense for the three and six months ended June 30, 2025 totaled $2.8 million and $5.7 million, respectively, compared to $2.0 million and $4.2 million for the three and six months ended June 30, 2024, respectively. Income tax expense increased over the prior comparable quarter primarily due to increased taxable earnings. The Company's effective tax rates for 

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the second quarters of 2025 and 2024 were 20.0% and 19.5%, respectively. For the six months ended June 30, 2025 and 2024, the Company's effective tax rates were 20.3% and 19.5%, respectively.

CRITICAL ACCOUNTING ESTIMATES

SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.

We follow financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States. Our accounting policies are discussed in detail in Note 1 - Basis of Presentation in the accompanying notes to the consolidated financial statements included elsewhere in this report and in our 2024 Annual Report on Form 10-K. Not all significant accounting policies require management to make difficult, subjective or complex judgments. However, management believes the policy noted below meets the SEC’s definition of a critical accounting policy.

Allowance for Credit Losses 

Management considers the policies related to the allowance for credit losses as the most critical to the financial statement presentation. The total allowance for credit losses includes activity related to