Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 73

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 73
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— — — — Commercial and industrial— — — — Consumer— — — — Total special mention loans$1,812 $823 $989 120.2 %

36

(dollars in thousands)June 30, 2025December 31, 2024Increase/(Decrease)Substandard LoansOne- to four-family first mortgage$6,741 $7,034 $(293)(4.2)%Home equity loans and lines1,033 279 754 270.3 Commercial real estate31,367 18,541 12,826 69.2 Construction and land6,232 5,224 1,008 19.3 Multi-family residential1,237 930 307 33.0 Commercial and industrial3,166 3,755 (589)(15.7)Consumer35 27 8 29.6 Total substandard loans$49,811 $35,790 $14,021 39.2 %Total nonperforming loans increased by $9.8 million, or 71.7%, to $23.4 million at June 30, 2025, compared to $13.6 million at December 31, 2024. The primary reason for the increase was four loan relationships with an aggregate outstanding balance of $10.5 million at June 30, 2025 that became nonperforming during 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. Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation processes that meet the objectives set forth in the policy statement. Management maintains, based on current and forecasted information, an ACL that reflects a current estimate of expected credit losses for the estimated life of the loan portfolio at reporting periods subsequent