Company: HBCP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-048166
Chunk: 62

Company: HOME BANCORP, INC.
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 8
Chunk 62
---
 $406,059 $— LiabilitiesDerivative liabilities$42 $— $42 $— Nonrecurring BasisThe Company records loans individually evaluated for credit losses at fair value on a nonrecurring basis. Fair value is measured at the fair value of the collateral for collateral-dependent loans. For non-collateral-dependent loans, fair value is measured by present valuing expected future cash flows. Loans individually evaluated are classified as Level 3 assets when measured using appraisals from third parties of the collateral less any prior liens and when there is no observable market price.Foreclosed assets and ORE are also recorded at fair value on a nonrecurring basis. Foreclosed assets are initially recorded at fair value less estimated costs to sell. ORE is recorded at the lower of its net book value or fair value at the date of transfer to ORE. The fair value of foreclosed assets and ORE is based on property appraisals and an analysis of similar properties available. As such, the Company classifies foreclosed and ORE assets as Level 3 assets.The Company has segregated all financial assets that are measured at fair value on a nonrecurring basis into the most appropriate level within the fair value hierarchy based on the inputs used to determine the fair value at the measurement date as reflected in the table below.  Fair Value Measurements Using(dollars in thousands)September 30, 2025Level 1Level 2Level 3AssetsLoans individually evaluated$5,004 $— $— $5,004 Foreclosed assets and ORE1,384 — — 1,384 Total$6,388 $— $— $6,388   Fair Value Measurements Using(dollars in thousands)December 31, 2024Level 1Level 2Level 3AssetsLoans individually evaluated$4,524 $— $— $4,524 Foreclosed assets and ORE2,010 — — 2,010 Total$6,534 $— $— $6,534 

30

The following table shows significant unobservable inputs used in the fair value measurement of Level 3 assets.(dollars in thousands)Fair ValueValuation TechniqueUnobservable InputsRange of DiscountsWeighted Average DiscountSeptember 30, 2025Loans individually evaluated$5