Company: HBCP
Filing Date: 2025-03-12
Form Type: 10-K
Source: 0001436425-25-000012
Chunk: 61

Company: HOME BANCORP, INC.
Filing Date: 2025-03-12
Form: 10-K
Item: Item 8
Chunk 61
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 fair value of the ESOP shares during the periods in which they are committed to be released. To the extent that the fair value of the Company’s ESOP shares differs from the cost of such shares, the differential is credited to shareholders’ equity. The Company receives a tax deduction equal to the cost of the shares released. As the loan is internally leveraged, the loan receivable from the ESOP to the Company is not reported as an asset nor is the debt of the ESOP shown as a Company liability.Compensation cost related to the ESOP was $1,095,000, $908,000 and $1,096,000 for the years ended December 31, 2024, 2023 and 2022, respectively. The fair value of the unearned ESOP shares, using the closing quoted market price per share as of year-end, was approximately $6,188,000 and $7,125,000 as of December 31, 2024 and 2023, respectively. A summary of the ESOP share allocation as of December 31, 2024 and 2023 follows.

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20242023Shares allocated, beginning of year378,791 361,195 Shares allocated during the year35,708 35,708 Shares distributed during the year(23,652)(18,112)Allocated shares held by ESOP trust as of year end390,847 378,791 Unallocated shares133,903 169,611 Total ESOP shares524,750 548,402 Salary Continuation AgreementsAs a supplement to its 401(k) retirement plan, the Bank has entered into nonqualified salary continuation agreements with four executive officers of the Bank. The Bank's 2007 salary continuation agreement with its Chief Executive Officer (“CEO”) provides that the executive will receive a stated annual benefit for a period of ten years upon retirement from the Bank. Benefits under the 2007 agreement vested over ten years, with 100% of this benefit having vested in 2017. Also, effective May 20, 2019, the Bank entered into a new salary continuation agreement with its CEO, which will provide the CEO with an additional stated annual benefit for a period of ten years upon his retirement after attaining age 65. The CEO is 100% vested in his normal retirement benefit under the 2019 agreement. In the event of early retirement, the Bank will pay the CEO his vested benefits, in a lump sum on the