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: September 30, 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 November 4, 2020, the registrant had 8,755,250 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	6
	Notes to Unaudited Consolidated Financial Statements	7
Item 2.	Managements’ Discussion and Analysis of Financial Condition and Results of Operations	35
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	54
Item 4.	Controls and Procedures	54
PART II - OTHER INFORMATION
Item 1.	Legal Proceedings	55
Item 1A.	Risk Factors	55
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	55
Item 3.	Defaults Upon Senior Securities	56
Item 4.	Mine Safety Disclosures	56
Item 5.	Other Information	56
Item 6.	Exhibits	56
SIGNATURES		57

i

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
AOCI	–	Accumulated other comprehensive income
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., a 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)
	September 30,		December 31,
(dollars in thousands)	2020		2019
Assets
Cash and cash equivalents	$	185,836	$	39,847
Interest-bearing deposits in banks	349		449
Investment securities available for sale, at fair value	251,578		257,321
Investment securities held to maturity (fair values of $3,008 and $7,194, respectively)	2,942		7,149
Mortgage loans held for sale	21,045		6,990
Loans, net of unearned income	1,955,297		1,714,361
Allowance for loan losses	(33,002)		(17,868)
Total loans, net of unearned income and allowance for loan losses	1,922,295		1,696,493
Office properties and equipment, net	45,696		46,425
Cash surrender value of bank-owned life insurance	40,184		39,466
Goodwill and core deposit intangibles	63,439		64,472
Accrued interest receivable and other assets	45,836		41,853
Total Assets	2,579,200		2,200,465
Liabilities
Deposits:
Noninterest-bearing	629,345		437,828
Interest-bearing	1,578,149		1,383,147
Total Deposits	2,207,494		1,820,975
Other borrowings	5,539		5,539
Long-term Federal Home Loan Bank advances	31,445		40,620
Accrued interest payable and other liabilities	21,398		17,002
Total Liabilities	2,265,876		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; 8,831,406 and 9,252,418 shares issued and outstanding, respectively	88		93
Additional paid-in capital	165,522		168,545
Unallocated common stock held by:
Employee Stock Ownership Plan (ESOP)	(2,857)		(3,124)
Recognition and Retention Plan (RRP)	(23)		(35)
Retained earnings	145,373		150,158
Accumulated other comprehensive income	5,221		692
Total Shareholders’ Equity	313,324		316,329
Total Liabilities and Shareholders’ Equity	$	2,579,200	$	2,200,465

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

1

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands, except per share data)	2020		2019		2020		2019
Interest Income
Loans, including fees	$	24,769	$	23,562	$	72,839	$	70,572
Investment securities:
Taxable interest	897		1,401		3,308		4,655
Tax-exempt interest	70		114		253		397
Other investments and deposits	106		397		361		1,140
Total interest income	25,842		25,474		76,761		76,764
Interest Expense
Deposits	2,368		4,050		9,047		11,116
Other borrowings	53		53		159		159
Short-term Federal Home Loan Bank advances	—		—		23		—
Long-term Federal Home Loan Bank advances	149		230		520		751
Total interest expense	2,570		4,333		9,749		12,026
Net interest income	23,272		21,141		67,012		64,738
Provision for loan losses	—		1,146		12,728		2,301
Net interest income after provision for loan losses	23,272		19,995		54,284		62,437
Noninterest Income
Service fees and charges	1,123		1,516		3,529		4,396
Bank card fees	1,331		1,141		3,595		3,414
Gain on sale of loans, net	904		355		1,843		758
Income from bank-owned life insurance	231		1,464		718		1,831
Loss on sale of assets, net	—		(8)		(11)		(336)
Other income	205		306		581		853
Total noninterest income	3,794		4,774		10,255		10,916
Noninterest Expense
Compensation and benefits	9,740		10,266		28,518		28,977
Occupancy	1,686		1,791		5,075		5,405
Marketing and advertising	288		418		746		997
Data processing and communication	1,851		1,764		5,430		4,782
Professional services	197		227		665		684
Forms, printing and supplies	140		172		471		514
Franchise and shares tax	378		399		1,156		1,196
Regulatory fees	526		127		1,004		717
Foreclosed assets and ORE, net	162		47		324		328
Amortization of acquisition intangible	338		393		1,033		1,201
Provision for credit losses on unfunded commitments	—		—		1,272		—
Other expenses	810		1,006		2,563		3,052
Total noninterest expense	16,116		16,610		48,257		47,853
Income before income tax expense	10,950		8,159		16,282		25,500
Income tax expense	2,168		1,303		3,102		4,174
Net Income	$	8,782	$	6,856	$	13,180	$	21,326
Earnings per share:
Basic	$	1.01	$	0.76	$	1.51	$	2.34
Diluted	$	1.01	$	0.75	$	1.51	$	2.32
Cash dividends declared per common share	$	0.22	$	0.21	$	0.66	$	0.62

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

2

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	Three Months Ended September 30,				Nine Months Ended September 30,
(dollars in thousands)	2020		2019		2020		2019
Net Income	$	8,782	$	6,856	$	13,180	$	21,326
Other Comprehensive Income
Unrealized gains on available for sale investment securities	39		14		5,815		4,287
Unrealized gains (losses) on cash flow hedges	76		—		(82)		—
Tax effect	(24)		(3)		(1,204)		(900)
Other comprehensive income, net of taxes	91		11		4,529		3,387
Comprehensive Income	$	8,873	$	6,867	$	17,709	$	24,713

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

3

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 Income		Total
Balance, June 30, 2019	$	94	$	169,233	$	(3,303)	$	(48)	$	146,348	$	1,170	$	313,494
Net income									6,856				6,856
Other comprehensive income											11		11
Purchase of Company’s common stock at cost, 123,902 shares	(1)		(1,238)						(3,385)				(4,624)
Cash dividends declared, $0.21 per share									(1,976)				(1,976)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 5,071 shares	—		130						(2)				128
Exercise of stock options	—		143										143
RRP shares released for allocation			(1)				1						—
ESOP shares released for allocation			318		90								408
Share-based compensation cost			237										237
Balance, September 30, 2019	$	93	$	168,822	$	(3,213)	$	(47)	$	147,841	$	1,181	$	314,677
Balance, June 30, 2020	$	90	$	166,494	$	(2,946)	$	(24)	$	140,582	$	5,130	$	309,326
Net income									8,782				8,782
Other comprehensive income											91		91
Purchase of Company’s common stock at cost, 135,224 shares	(2)		(1,351)						(2,020)				(3,373)
Cash dividends declared, $0.22 per share									(1,970)				(1,970)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 529 shares	—		—						(1)				(1)
Exercise of stock options	—		—										—
RRP shares released for allocation			(1)				1						—
ESOP shares released for allocation			201		89								290
Share-based compensation cost			179										179
Balance, September 30, 2020	$	88	$	165,522	$	(2,857)	$	(23)	$	145,373	$	5,221	$	313,324

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

4

HOME BANCORP, INC. AND SUBSIDIARY

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - CONTINUED

(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									21,326				21,326
Other comprehensive income											3,387		3,387
Purchase of Company’s common stock at cost, 341,095 shares	(3)		(3,408)						(9,008)				(12,419)
Cash dividends declared, $0.62 per share									(5,858)				(5,858)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 24,392 shares	—		233						(66)				167
Exercise of stock options	1		2,228										2,229
RRP shares released for allocation			(11)				11						—
ESOP shares released for allocation			922		268								1,190
Share-based compensation cost			615										615
Balance, September 30, 2019	$	93	$	168,822	$	(3,213)	$	(47)	$	147,841	$	1,181	$	314,677
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									13,180				13,180
Other comprehensive income											4,529		4,529
Purchase of Company’s common stock at cost, 438,892 shares	(5)		(4,384)						(7,219)				(11,608)
Cash dividends declared, $0.66 per share									(5,978)				(5,978)
Common Stock issued under incentive plans, net of shares surrendered in payment, including tax benefit, 16,175 shares	—		34						(43)				(9)
Exercise of stock options	—		30										30
RRP shares released for allocation			(12)				12						—
ESOP shares released for allocation			680		267								947
Share-based compensation cost			629										629
Balance, September 30, 2020	$	88	$	165,522	$	(2,857)