Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 54

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 54
---
 assets that have been acquired as a result of foreclosure, and real property no longer used in the Bank's business. Foreclosed assets and ORE totaled $2,077,000 and $2,010,000 at June 30, 2025 and December 31, 2024, respectively. These amounts are recorded in accrued interest receivable and other assets on the Consolidated Statements of Financial Condition.The carrying amount of foreclosed residential real estate properties held at June 30, 2025 and December 31, 2024 totaled $1,888,000 and $2,010,000, respectively. Loans secured by single family residential real estate that were in the process of foreclosure at June 30, 2025 and December 31, 2024 totaled $942,000 and $4,472,000, respectively.

6. Derivatives and Hedging Activities 

Risk Management Objective of Using DerivativesThe Company is exposed to certain risk arising from both its business operations and economic conditions. The Company principally manages its exposures to a wide variety of business and operational risks through management of its core business activities. The Company manages economic risks, including interest rate, liquidity, and credit risk primarily by managing the amount, sources, and duration of its assets and liabilities and the use of derivative financial instruments. Specifically, the Company enters into derivative financial instruments to manage exposures that arise from business activities that result in the receipt or payment of future known and uncertain cash amounts, the value of which are determined by interest rates. The Company’s existing credit derivatives result from loan participation arrangements, therefore, are not used to manage interest rate risk in the Company’s assets or liabilities. The Company occasionally enters into credit risk participation agreements with counterparty banks to accept a portion of the credit risk related to interest rate swaps. The agreements, which are typically executed in conjunction with a participation in a loan with the same customer, allow customers to execute an interest rate swap with one bank while allowing for the distribution of the credit risk among participating members. Collateral used to support the credit risk for the underlying lending relationship is also available to offset the risk of credit risk participations and customer derivative positions.  Cash Flow Hedges of Interest Rate RiskThe Company’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. As part of its efforts to accomplish this objective, the Company entered into certain interest rate swap agreements as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow