Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 69

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 69
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000).

FINANCIAL CONDITION

Loans, Allowance for Credit Losses and Asset Quality

Loans

Total loans at June 30, 2025 were $2.8 billion, up $46.4 million, or 1.7%, from December 31, 2024. 

The following table summarizes the composition of the Company’s loan portfolio as of the dates indicated.

(dollars in thousands)June 30, 2025December 31, 2024Increase/(Decrease)Real estate loans:One-to four-family first mortgage$504,145 $501,225 $2,920 0.6 %Home equity loans and lines81,178 79,097 2,081 2.6 Commercial real estate1,218,168 1,158,781 59,387 5.1 Construction and land324,574 352,263 (27,689)(7.9)Multi-family residential183,809 178,568 5,241 2.9 Total real estate loans2,311,874 2,269,934 41,940 1.8 %Other loans:Commercial and industrial421,997 418,627 3,370 0.8 Consumer30,667 29,624 1,043 3.5 Total other loans452,664 448,251 4,413 1.0 Total loans$2,764,538 $2,718,185 $46,353 1.7 %

Allowance for Credit Losses

The ACL which equals the sum of the ALL and the ACL on unfunded lending commitments, is established through provisions for credit losses. Management recalculates the ACL at least quarterly to reassess the estimate of credit losses for the total portfolio at the relevant reporting date. Under ASC Topic 326, the ACL is measured on a pool basis when similar risk characteristics exist. For each pool of loans, management also evaluates and applies qualitative adjustments to the calculated ACL based on several factors, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of NPAs, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

The ACL policy described above