UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

(Mark One)

☒ Quarterly report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the quarterly period ended: March 31, 2020

or

☐ Transition report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number: 001-34190

HOME BANCORP, INC.

(Exact name of Registrant as specified in its charter)

Louisiana	71-1051785
(State or Other Jurisdiction of Incorporation or Organization)	(I.R.S. Employer Identification Number)
503 Kaliste Saloom Road, Lafayette, Louisiana	70508
(Address of Principal Executive Offices)	(Zip Code)

Registrant’s telephone number, including area code: (337) 237-1960

Not Applicable

(Former Name, Former Address and Former Fiscal Year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Exchange Act:

Title of each class	Trading symbol(s)	Name of each exchange on which registered
Common Stock	HBCP	NASDAQ Stock Market

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports) and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    NO  ☐

Indicate by check mark whether the Registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).    Yes  ☒    NO  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	☐	Accelerated filer	☒
Non-accelerated filer	☐	Smaller reporting company	☐
		Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    NO  ☒

At May 8, 2020, the registrant had 9,008,183 shares of common stock, $0.01 par value, outstanding.

HOME BANCORP, INC. and SUBSIDIARY

TABLE OF CONTENTS

		Page
PART I - FINANCIAL INFORMATION
Item 1.	Financial Statements (unaudited)
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Shareholders’ Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Unaudited Consolidated Financial Statements	6
Item 2.	Managements’ Discussion and Analysis of Financial Condition and Results of Operations	31
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46
Item 4.	Controls and Procedures	46
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	47
Item 1A.	Risk Factors	47
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	47
Item 3.	Defaults Upon Senior Securities	47
Item 4.	Mine Safety Disclosures	48
Item 5.	Other Information	48
Item 6.	Exhibits	48
SIGNATURES		49

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HOME BANCORP, INC. and SUBSIDIARY

GLOSSARY OF DEFINED TERMS

Below is a listing of certain acronyms, abbreviations and defined terms, among others, used throughout this Quarterly Report on Form 10-Q, including in "Item 1. Financial Statements" and "Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations." The terms "we," "our" or "us" refer to Home Bancorp, Inc. and its consolidated subsidiaries, unless the context otherwise requires.

ACL	–	Allowance for credit losses
ALL	–	Allowance for loan losses
ASC	–	Accounting Standards Codification
ASU	–	Accounting Standards Update
Bank	–	Home Bank, N.A., a wholly-owned subsidiary of the Company
BOLI	–	Bank-owned life insurance
bps	–	basis points, 100 basis points being equal to 1.0%
C&D	–	Construction and land
C&I	–	Commercial and industrial
CARES Act	–	Coronavirus Aid, Relief, and Economic Security Act
CECL	–	Current expected credit losses
Company	–	Home Bancorp, Inc., Louisiana corporation and the holding company for Home Bank, N.A.
COVID-19	–	The novel coronavirus
CRE	–	Commercial real estate
EPS	–	Earnings per common share
FASB	–	Financial Accounting Standards Board
FHLB	–	Federal Home Loan Bank
GAAP	–	Generally Accepted Accounting Principles
LTV	–	Loan-to-value
NPA(s)	–	Nonperforming asset(s)
OCI	–	Other comprehensive income
ORE	–	Other real estate
PCD	–	Purchased credit deteriorated
PCI	–	Purchased credit impaired
PPP	–	Paycheck Protection Program
SBA	–	Small Business Association
SEC	–	Securities and Exchange Commission
TDR	–	Troubled debt restructuring
TE	–	Taxable equivalent
U.S.	–	United States

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HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

	(Unaudited)		(Audited)
	March 31,		December 31,
(dollars in thousands)	2020		2019
Assets
Cash and cash equivalents	$	64,102	$	39,847
Interest-bearing deposits in banks	449		449
Investment securities available for sale, at fair value	265,646		257,321
Investment securities held to maturity (fair values of $6,641 and $7,194, respectively)	6,607		7,149
Mortgage loans held for sale	9,753		6,990
Loans, net of unearned income	1,739,142		1,714,361
Allowance for loan losses	(28,490)		(17,868)
Total loans, net of unearned income and allowance for loan losses	1,710,652		1,696,493
Office properties and equipment, net	46,541		46,425
Cash surrender value of bank-owned life insurance	39,725		39,466
Goodwill and core deposit intangibles	64,119		64,472
Accrued interest receivable and other assets	41,007		41,853
Total Assets	2,248,601		2,200,465
Liabilities
Deposits:
Noninterest-bearing	455,512		437,828
Interest-bearing	1,401,989		1,383,147
Total Deposits	1,857,501		1,820,975
Other borrowings	5,539		5,539
Long-term Federal Home Loan Bank advances	54,319		40,620
Accrued interest payable and other liabilities	19,745		17,002
Total Liabilities	1,937,104		1,884,136
Shareholders’ Equity
Preferred stock, $0.01 par value - 10,000,000 shares authorized; none issued	—		—
Common stock, $0.01 par value - 40,000,000 shares authorized; 9,067,920 and 9,252,418 shares issued and outstanding, respectively	91		93
Additional paid-in capital	167,249		168,545
Unallocated common stock held by:
Employee Stock Ownership Plan (ESOP)	(3,035)		(3,124)
Recognition and Retention Plan (RRP)	(28)		(35)
Retained earnings	141,798		150,158
Accumulated other comprehensive income	5,422		692
Total Shareholders’ Equity	311,497		316,329
Total Liabilities and Shareholders’ Equity	$	2,248,601	$	2,200,465

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended March 31,
(dollars in thousands, except per share data)	2020		2019
Interest Income
Loans, including fees	$	23,699	$	23,198
Investment securities:
Taxable interest	1,308		1,653
Tax-exempt interest	104		155
Other investments and deposits	138		363
Total interest income	25,249		25,369
Interest Expense
Deposits	3,667		3,331
Other borrowings	53		53
Short-term Federal Home Loan Bank advances	3		—
Long-term Federal Home Loan Bank advances	203		263
Total interest expense	3,926		3,647
Net interest income	21,323		21,722
Provision for loan losses	6,257		390
Net interest income after provision for loan losses	15,066		21,332
Noninterest Income
Service fees and charges	1,464		1,467
Bank card fees	1,137		1,061
Gain on sale of loans, net	297		155
Income from bank-owned life insurance	259		165
Gain (loss) on sale of assets, net	2		(1)
Other income	199		318
Total noninterest income	3,358		3,165
Noninterest Expense
Compensation and benefits	9,416		9,098
Occupancy	1,736		1,606
Marketing and advertising	298		271
Data processing and communication	1,819		1,422
Professional services	213		239
Forms, printing and supplies	171		161
Franchise and shares tax	389		399
Regulatory fees	116		307
Foreclosed assets and ORE, net	17		241
Amortization of acquisition intangible	353		410
Other expenses	1,618		1,137
Total noninterest expense	16,146		15,291
Income before income tax expense	2,278		9,206
Income tax expense	373		1,316
Net Income	$	1,905	$	7,890
Earnings per share:
Basic	$	0.21	$	0.86
Diluted	$	0.21	$	0.85
Cash dividends declared per common share	$	0.22	$	0.20

 The accompanying Notes are an integral part of these Consolidated Financial Statements.

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HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended March 31,
(dollars in thousands)	2020		2019
Net Income	$	1,905	$	7,890
Other Comprehensive Income
Unrealized gains on investment securities	5,987		1,772
Tax effect	(1,257)		(372)
Other comprehensive income, net of taxes	4,730		1,400
Comprehensive Income	$	6,635	$	9,290

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(dollars in thousands, except per share data)	Common stock		Additional Paid-in capital		Unallocated Common Stock Held by ESOP		Unallocated Common Stock Held by RRP		Retained Earnings		Accumulated Other Comprehensive (Loss) Income		Total
Balance, December 31, 2018	$	95	$	168,243	$	(3,481)	$	(58)	$	141,447	$	(2,206)	$	304,040
Net income									7,890				7,890
Other comprehensive income											1,400		1,400
Purchase of Company’s common stock at cost,134,005 shares	(1)		(1,339)						(3,445)				(4,785)
Cash dividends declared, $0.20 per share									(1,894)				(1,894)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 1,440 shares	—		35										35
Exercise of stock options	1		1,676										1,677
RRP shares released for allocation			(7)				7						—
ESOP shares released for allocation			297		89								386
Share-based compensation cost			186										186
Balance, March 31, 2019	$	95	$	169,091	$	(3,392)	$	(51)	$	143,998	$	(806)	$	308,935
Balance, December 31, 2019	$	93	$	168,545	$	(3,124)	$	(35)	$	150,158	$	692	$	316,329
Cumulative effect of change in accounting principle due the adoption of ASC Topic 326, net of tax									(4,725)				(4,725)
Net income									1,905				1,905
Other comprehensive income											4,730		4,730
Purchase of Company’s common stock at cost, 188,341 shares	(2)		(1,881)						(3,505)				(5,388)
Cash dividends declared, $0.22 per share									(2,027)				(2,027)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 2,138 shares	—		37						(8)				29
Exercise of stock options	—		30										30
RRP shares released for allocation			(7)				7						—
ESOP shares released for allocation			281		89								370
Share-based compensation cost			244										244
Balance, March 31, 2020	$	91	$	167,249	$	(3,035)	$	(28)	$	141,798	$	5,422	$	311,497

The accompanying Notes are an integral part of these Consolidated Financial Statements.

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HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	For the Three Months Ended March 31,
(dollars in thousands)	2020		2019
Cash flows from operating activities:
Net income	$	1,905	$