Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 71

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 71
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 to their ability to service the debt in accordance with the terms of the loan agreement. Interest income is not accrued on these loans until the borrower’s financial condition and payment record demonstrate an ability to service the debt.

Under our allowance policy, credit losses are measured on a pool basis when similar risk characteristics exist. Loans that do not share similar risk characteristics are individually evaluated for credit losses and are excluded from the pooled loan analysis. At least quarterly, management evaluates the loan portfolio to determine which loans should be individually evaluated for credit losses. Management's evaluation involves an analysis of larger (i.e., loans with balances of $500,000 or greater) commercial real estate loans, multi-family residential loans, construction and land loans and commercial and industrial loans. Third party property valuations are obtained at the time of origination for real estate secured loans. When a determination is made that a loan has deteriorated to the point of becoming a problem loan, updated valuations may be ordered to determine if a short-fall exists, which may lead to a recommendation for partial charge off or appropriate allowance allocation. Property valuations are ordered through, and are reviewed by, an appraisal officer at the Bank. The Company typically orders an “as is” valuation for collateral property if a loan is in a criticized loan classification. Loans individually evaluated for credit losses are reported to the Board of Directors monthly. 

At June 30, 2025 and December 31, 2024, loans identified as credit deteriorated loans and individually evaluated for expected losses were $3.7 million and $5.0 million, respectively. The following tables provide a summary of loans individually evaluated for credit losses as of the dates indicated.

  June 30, 2025(dollars in thousands)Recorded investmentAllowance for Loan LossesAllowance to Total LoansLoans Individually EvaluatedOne- to four-family first mortgage$— $— — %Home equity loans and lines817 94 11.51 Commercial real estate2,260 433 19.16 Construction and land— — — Multi-family residential— — — Commercial and industrial624 363 58.17 Consumer— — — Total$3,701 $890 24.05 %

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December 31, 2024(dollars in thousands)Recorded investmentAllowance for Loan LossesAllowance to Total LoansLoans Individually EvaluatedOne- to four