Company: HBCP
Filing Date: 2025-08-01
Form Type: 10-Q
Source: 0001436425-25-000036
Chunk: 55

Company: HOME BANCORP, INC.
Filing Date: 2025-08-01
Form: 10-Q
Item: Item 8
Chunk 55
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 hedges involve the receipt of variable amounts from a counterparty in exchange for the Company making fixed-rate payments over the life of the agreements without exchange of the underlying notional amount. Such derivatives were used to hedge the variable cash flows associated with existing variable rate liabilities.For derivatives designated and that qualify as cash flow hedges of interest rate risk, the gain or loss on the derivative is recorded in Accumulated Other Comprehensive Income and subsequently reclassified into interest expense in the same period(s) during which the hedged transaction affects earnings. Amounts reported in accumulated other comprehensive income related to derivatives will be reclassified to interest expense as interest payments are made on the Company’s variable rate liabilities. During the next twelve months, the Company estimates that an additional $1,398,000 will be reclassified as additional interest expense. Non-designated HedgesDerivatives not designated as hedges are not speculative and result from a service the Company provides to certain customers. The Company executes interest rate swaps with commercial banking customers to facilitate their respective risk management strategies. Those interest rate swaps are simultaneously hedged by offsetting derivatives that the Company executes with a third party, such that the Company minimizes its net risk exposure resulting from such transactions. As the interest rate derivatives associated with this program do not meet hedge accounting requirements, changes in the fair value of both the customer derivatives and the offsetting derivatives are recognized directly in earnings through other income.

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Fair Values of Derivative Instruments The tables below present the fair value of the Company’s derivative financial instruments as well as their classification on the Consolidated Statement of Financial Condition as of June 30, 2025 and December 31, 2024. June 30, 2025Derivative Assets(1)Derivative Liabilities(1)(dollars in thousands)Notional AmountFair ValueNotional AmountFair ValueDerivatives designated as hedging instruments:Interest rate swaps - variable rate liabilities$80,000 $1,881 $— $— Derivatives not designated as hedging instruments:Interest rate contracts$9,000 $279 $9,000 $310 Risk participation agreements— — 11,424 1 Netting adjustments— — Net derivative amounts$2,160 $311 December 31, 2024Derivative Assets(1)Derivative Liabilities(1)(dollars in thousands)Notional AmountFair ValueNotional AmountFair ValueDerivatives designated as hed