Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 8

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 2
Chunk 8
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.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 to the adoption date. For all reporting periods, actual losses are uncertain and dependent upon future events and, as such, further additions to the level of ACL may become necessary.

The following table sets forth the composition of the Company’s nonperforming assets as of the dates indicated.

 June 30, 2025December 31, 2024(dollars in thousands)OriginatedAcquired(1) TotalOriginatedAcquired(1) Total Nonaccrual loans:Real estate loans:One- to four-family first mortgage$5,079 $1,193 $6,272 $5,348 $1,691 $7,039 Home equity loans and lines1,001 32 1,033 245 34 279 Commercial real estate524 7,145 7,669 1,058 2,246 3,304 Construction and land6,103 — 6,103 1,619 3 1,622 Multi-family residential916 — 916 — — — Other loans:Commercial and industrial607 705 1,312 705 606 1