Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 4

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 2
Chunk 4
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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 is supplemented by periodic reviews and validations performed by independent loan reviewers. The results of the reviews are reported to the Audit Committee of the Board of Directors. The establishment of the ACL is significantly affected by management judgment. There is likelihood that different amounts would be reported under different conditions or assumptions. Federal regulatory agencies, as an integral part of their examination process, periodically 

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review our ACL. Such agencies may require management to make additional provisions for estimated losses based upon judgments different from those of management.

We continue to monitor and modify our ACL as conditions warrant. No assurance can be given that our level of ACL will cover all of the losses on our loans or that future adjustments to the ACL will not be necessary if economic and other conditions differ substantially from the assumptions used by management to determine the current level of the ACL.

At June 30, 2025, the ALL totaled $33.4 million, or 1.21% of total loans, up $516,000 from $32.9 million, or 1.21% of total loans, at December 31, 2024. During the six months ended June 30, 2025, the Company provisioned $883,000 of