hbcp-20230717
503 Kaliste Saloom RoadLafayetteLouisiana337237-1960July 17, 20230001436425FALSE00014364252023-07-172023-07-17

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
 
Washington, D.C. 20549
 
FORM 8-K
 
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported)July 17, 2023
Home Bancorp, Inc.
(Exact name of registrant as specified in its charter)
Louisiana001-3419071-1051785
(State or other jurisdiction of incorporation)(Commission File Number)(IRS Employer Identification No.)
503 Kaliste Saloom Road, Lafayette, Louisiana
70508
(Address of principal executive offices)(Zip Code)
Registrant’s telephone number, including area code
(337) 237-1960
N/A
(Former name or former address, if changed since last report)
 
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2 below):
☐Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading symbol(s)Name of each exchange on which registered
Common StockHBCPNasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
 
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. ¨
 
 


Item 2.02Results of Operations and Financial Condition
 
On July 17, 2023, the Registrant announced its results of operations for the quarter ended June 30, 2023. A copy of the related press release (the "Press Release") is attached as Exhibit 99.1 to this Current Report on Form 8-K and is incorporated by reference herein. The Press Release attached hereto is being furnished to the SEC and shall not be deemed "filed" for any purpose except as otherwise provided herein.

Item 8.01Other Events

On July 17, 2023, the Registrant announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.25 per share. The cash dividend will be paid on August 11, 2023 to shareholders of record at the close of business on July 31, 2023.

Item 7.01Regulation FD Disclosure

On July 17, 2023, the Registrant made available the supplemental information attached as Exhibit 99.2 prepared for use with the press release.

The investor presentation attached hereto as Exhibit 99.2 and incorporated herein by reference is being furnished pursuant to this Item 7.01 and shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities of that section, and it shall not be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or under the Exchange Act, whether made before or after the date hereof, except as expressly set forth by specific reference in such filing to this Current Report on Form 8-K.


Item 9.01Financial Statements and Exhibits

(a)Not applicable.
(b)Not applicable.
(c)Not applicable.
(d)Exhibits

The following exhibit is filed herewith.
Exhibit Number Description
 
104The cover page of Home Bancorp Inc.'s Form 8-K is formatted in Inline XBRL.
 



SIGNATURES
 

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 HOME BANCORP, INC. 
    
    
Date:  July 17, 2023
By:/s/ John W. Bordelon 
  John W. Bordelon 
  Chairman of the Board, President and Chief Executive Officer 

 
 




homebancorpa.jpg

For further information contact:
John W. Bordelon, Chairman of the Board, President and CEO
(337) 237-1960

Release Date:July 17, 2023
For Immediate Release

HOME BANCORP, INC. ANNOUNCES 2023 SECOND QUARTER RESULTS AND
DECLARES QUARTERLY DIVIDEND

Lafayette, Louisiana – Home Bancorp, Inc. (Nasdaq: “HBCP”) (the “Company”), the parent company for Home Bank, N.A. (the “Bank”) (www.home24bank.com), reported financial results for the second quarter of 2023. For the quarter, the Company reported net income of $9.8 million, or $1.21 per diluted common share (“diluted EPS”), down $1.5 million from $11.3 million, or $1.39 diluted EPS, for the first quarter of 2023.

“Considering everything that has happened in banking during this interest rate cycle, we’re pleased with our second quarter performance," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. “Like every other community bank, we’ve faced pressure on deposits but have so far been able to retain relationships while keeping the cost of our total deposits below 1% for the second quarter. I think this is due to the strength of our deposit franchise, which is something we were focused on even when rates were near zero. Loan growth continued in the second quarter despite the rise in interest rates as total loans increased 7% on an annualized basis. As we move forward in the second half of 2023, we remain committed to providing exceptional service to our new and existing customers as we have for the last 115 years.”


Second Quarter 2023 Highlights

•Loans totaled $2.5 billion at June 30, 2023, up $44.4 million, or 1.8% (7% on an annualized basis) from March 31, 2023.

•Net interest income totaled $30.3 million, down $1.3 million, or 4% from the prior quarter.

•The net interest margin ("NIM") decreased 24 basis points from 4.18% for the first quarter of 2023 to 3.94%.

•The Company recorded a $511,000 provision to the allowance for loan losses primarily due to loan growth.

•Nonperforming assets totaled $12.4 million, or 0.38% of total assets, up $1.1 million, or 10%, from $11.3 million, or 0.35% of total assets, at March 31, 2023 primarily due to three credit relationships.



1
    
Loans

Loans totaled $2.5 billion at June 30, 2023, up $44.4 million, or 2%, from March 31, 2023. The following table summarizes the changes in the Company’s loan portfolio, net of unearned income, from March 31, 2023 through June 30, 2023.

(dollars in thousands)6/30/20233/31/2023Increase (Decrease)
Real estate loans:




One- to four-family first mortgage$419,091 $405,638 $13,453 3 %
Home equity loans and lines66,932 64,107 2,825 4 
Commercial real estate1,176,976 1,162,367 14,609 1 
Construction and land327,488 318,622 8,866 3 
Multi-family residential103,951 102,604 1,347 1 
Total real estate loans2,094,438 2,053,338 41,100 2 
Other loans:



Commercial and industrial382,292 379,119 3,173 1 
Consumer34,029 33,935 94 — 
Total other loans416,321 413,054 3,267 1 
Total loans$2,510,759 $2,466,392 $44,367 2 %

The average loan yield was 5.82% for the second quarter of 2023, up 15 basis points from the first quarter of 2023. Loan growth during the second quarter of 2023 was across all loan types. The loan growth was across most of our markets. Approximately 19% of the loan growth in the second quarter of 2023 was attributable to the Houston market.

Credit Quality and Allowance for Credit Losses

Nonperforming assets (“NPAs”) totaled $12.4 million, or 0.38% of total assets, at June 30, 2023, up $1.1 million, or 10%, from $11.3 million, or 0.35% of total assets, at March 31, 2023. During the second quarter of 2023, the Company recorded net loan recoveries of $10,000, compared to net loan recoveries of $5,000 during the first quarter of 2023.

The Company provisioned $511,000 to the allowance for loan losses in the second quarter of 2023. At June 30, 2023, the allowance for loan losses totaled $30.6 million, or 1.22% of total loans, compared to $30.1 million, or 1.22% of total loans, at March 31, 2023. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider various factors including the changing economic activity, potential mitigating effects of governmental stimulus, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

2
    
The following tables present the Company’s loan portfolio by credit quality classification as of June 30, 2023 and March 31, 2023.
June 30, 2023
(dollars in thousands)PassSpecial MentionSubstandardTotal
One- to four-family first mortgage
$415,162 $872 $3,057 $419,091 
Home equity loans and lines66,809 — 123 66,932 
Commercial real estate1,160,405 335 16,236 1,176,976 
Construction and land319,738 5,410 2,340 327,488 
Multi-family residential100,521 — 3,430 103,951 
Commercial and industrial377,529 2,894 1,869 382,292 
Consumer33,832 — 197 34,029 
Total$2,473,996 $9,511 $27,252 $2,510,759 
March 31, 2023
(dollars in thousands)PassSpecial MentionSubstandardTotal
One- to four-family first mortgage
$401,296 $1,224 $3,118 $405,638 
Home equity loans and lines64,076 — 31 64,107 
Commercial real estate1,148,828 340 13,199 1,162,367 
Construction and land311,638 5,431 1,553 318,622 
Multi-family residential99,221 — 3,383 102,604 
Commercial and industrial374,364 2,783 1,972 379,119 
Consumer33,672 — 263 33,935 
Total$2,433,095 $9,778 $23,519 $2,466,392 


Investment Securities

The Company's investment securities portfolio totaled $450.5 million at June 30, 2023, a decrease of $17.1 million, or 3.7% from March 31, 2023. The Company recorded no sales of available-for-sale investment securities during the three months ended June 30, 2023. During the first quarter 2023, the Company recorded a net loss of $249,000 related to the sale of available-for-sale investment securities totaling $14.0 million. At June 30, 2023, the Company had a net unrealized loss position on its investment securities of $53.2 million, compared to a net unrealized loss of $47.1 million at March 31, 2023. The Company’s investment securities portfolio had an effective duration of 4.5 years at June 30, 2023 and March 31, 2023.

3
    

The following table summarizes the composition of the Company's investment securities portfolio at June 30, 2023.
(dollars in thousands)Amortized CostFair Value
Available for sale:
U.S. agency mortgage-backed$332,737 $295,541 
Collateralized mortgage obligations86,478 81,327 
Municipal bonds56,316 47,855 
U.S. government agency20,080 18,588 
Corporate bonds6,981 6,085 
Total available for sale$502,592 $449,396 
Held to maturity:
Municipal bonds$1,066 $1,065 
Total held to maturity$1,066 $1,065 

Approximately 30% of the investment securities portfolio was pledged as of June 30, 2023. As of June 30, 2023 and March 31, 2023, the Company had $134.9 million and $146.5 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $2.6 billion at June 30, 2023, down $6.0 million, or less than 1%, from March 31, 2023. Non-maturity deposits decreased $98.6 million, or 5% during the second quarter of 2023 to $2.1 billion. The following table summarizes the changes in the Company’s deposits from March 31, 2023 to June 30, 2023.

(dollars in thousands)

6/30/20233/31/2023Increase (Decrease)
Demand deposits$816,555 $854,736 $(38,181)(4)%
Savings261,780 288,788 (27,008)(9)
Money market363,801 384,809 (21,008)(5)
NOW645,087 657,499 (12,412)(2)
Certificates of deposit464,495 371,912 92,583 25 
Total deposits$2,551,718 $2,557,744 $(6,026)— %

The average rate on interest-bearing deposits increased 53 basis points from 0.77% for the first quarter of 2023 to 1.30% for the second quarter of 2023. At June 30, 2023, certificates of deposit maturing within the next 12 months totaled $402.3 million.

We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.

June 30, 2023March 31, 2023
Individuals51%51%
Small businesses3939
Public funds88
Broker 22
Total100%100%
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $735.4 million at June 30, 2023 and $778.0 million at March 31, 2023. Public funds in excess of the FDIC insurance limits are fully collateralized.
4
    

Net Interest Income

The net interest margin ("NIM") decreased 24 basis points from 4.18% for the first quarter of 2023 to 3.94% for the second quarter of 2023 primarily due to an increase in the average cost of interest-bearing liabilities, which was partially offset with an increase in the average yield on interest-earning assets. The increase in average cost of interest-bearing liabilities was primarily due to the higher costs on short-term FHLB borrowings and deposits in the second quarter of 2023.

The average loan yield was 5.82% for the second quarter of 2023, up 15 basis points from the first quarter of 2023, primarily reflecting increased market rates of interest on variable loans coupled with new loan originations at higher market rates during the period.

Average other interest-earning assets were $52.3 million for the second quarter of 2023, down $1.2 million, or 2%, from the first quarter of 2023 primarily due to a reallocation of certain other interest-earning assets.

Loan accretion income from acquired loans totaled $647,000 for the second quarter of 2023, down $21,000, or 3%, from the first quarter of 2023.

The following table summarizes the Company’s average volume and rate of its interest-earning assets and interest-bearing liabilities for the periods indicated. Taxable equivalent (“TE”) yields on investment securities have been calculated using a marginal tax rate of 21%.

Quarter Ended

6/30/20233/31/2023
(dollars in thousands)Average BalanceInterestAverage Yield/ RateAverage BalanceInterestAverage Yield/ Rate
Interest-earning assets:






Loans receivable$2,491,029 $36,530 5.82 %$2,437,770 $34,498 5.67 %
Investment securities (TE)
507,050 2,986 2.37 535,195 3,142 2.38 
Other interest-earning assets52,256 555 4.26 53,456 475 3.60 
Total interest-earning assets$3,050,335 $40,071 5.22 %$3,026,421 $38,115 5.05 %
Interest-bearing liabilities:






Deposits:






Savings, checking, and money market$1,300,245 $3,023 0.93 %$1,349,185 $2,048 0.62 %
Certificates of deposit407,038 2,524 2.49 349,683 1,192 1.38 
Total interest-bearing deposits1,707,283 5,547 1.30 1,698,868 3,240 0.77 
Other borrowings5,651 55 3.88 5,539 53 3.89 
Subordinated debt54,098 850 6.29 54,041 851 6.30 
FHLB advances272,783 3,313 4.81 215,478 2,376 4.41 
Total interest-bearing liabilities$2,039,815 $9,765 1.91 %$1,973,926 $6,520 1.33 %
Noninterest-bearing deposits$831,517 $879,501 
Net interest spread (TE)


3.31 %


3.72 %
Net interest margin (TE)


3.94 %


4.18 %

Noninterest Income

Noninterest income for the second quarter of 2023 totaled $3.4 million, up $137,000, or 4%, from the first quarter of 2023. The increase was related primarily to the absence of a net loss on sale of securities totaling $249,000 during the first quarter of 2023, which was partially offset by decreases in bank card fees of $72,000 and gain on sale of loans of $31,000 for the second quarter of 2023 compared to the first quarter of 2023.

5
    

Noninterest Expense

Noninterest expense for the second quarter of 2023 totaled $21.0 million, up $1.0 million, or 5%, from the first quarter of 2023. The increase was primarily related to foreclosed assets expense (up $789,000 primarily due to the absence of a $739,000 recovery of a previous loss on a foreclosed asset in the first quarter of 2023), other expenses (up $167,000), compensation and benefits expense (up $162,000), and marketing and advertising expenses (up $135,000), which were partially offset by a decrease in data processing and communication fees and expenses (down $189,000) during the second quarter of 2023.

Capital and Liquidity

At June 30, 2023, shareholders’ equity totaled $346.1 million, up $1.0 million, or less than 1%, compared to $345.1 million at March 31, 2023. The increase was primarily due to the Company’s earnings of $9.8 million in the quarter, which was partially offset with an increase in the accumulated other comprehensive loss on available for sale investment securities and repurchase of the Company's common shares of stock during the second quarter of 2023. The market value of the Company's available for sale securities at June 30, 2023 decreased $6.1 million, or 13%, compared to $47.1 million at March 31, 2023. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 10.78% and 14.07%, respectively, at June 30, 2023, compared to 10.69% and 14.00%, respectively, at March 31, 2023.

The following table summarizes the Company's primary and secondary sources of liquidity which were available at June 30, 2023.
(dollars in thousands)June 30, 2023
Cash and cash equivalents$96,873 
Unencumbered investment securities, amortized cost72,354 
FHLB advance availability897,776 
Amounts available from unsecured lines of credit55,000 
Federal Reserve bank term funding program109,379 
Federal Reserve discount window availability500 
Total primary and secondary sources of available liquidity$1,231,882 

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.25 per share payable on August 11, 2023, to shareholders of record as of July 31, 2023.

The Company repurchased 99,734 shares of its common stock during the second quarter of 2023 at an average price per share of $31.58. An additional 85,785 shares remain eligible for purchase under the 2021 Repurchase Plan. The book value per share and tangible book value per share of the Company’s common stock was $42.22 and $31.59, respectively, at June 30, 2023.
Conference Call

Executive management will host a conference call to discuss second quarter 2023 results on Tuesday, July 18, 2023 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.848.488.9160 (US Local/International) or 1.877.550.1858 (US Toll Free). The investor presentation can be accessed the day of the presentation on Home Bancorp, Inc. website at https://home24bank.investorroom.com.

A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company's website, https://home24bank.investorroom.com.
6
    

Non-GAAP Reconciliation

This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this news release, information is included which excludes intangible assets, and certain acquisition related metrics. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company’s financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation on non-GAAP information included herein to GAAP is presented below.


Quarter Ended
(dollars in thousands, except per share data)6/30/20233/31/20236/30/2022
Reported net income$9,781 $11,320 $8,461 
Add: Core deposit intangible amortization, net tax307 352 359 
Non-GAAP tangible income$10,088 $11,672 $8,820 
Total assets$3,290,153 $3,266,970 $3,362,216 
Less: Intangible assets87,138 87,527 88,309 
Non-GAAP tangible assets$3,203,015 $3,179,443 $3,273,907 




Total shareholders’ equity$346,117 $345,100 $329,124 
Less: Intangible assets87,138 87,527 88,309 
Non-GAAP tangible shareholders’ equity$258,979 $257,573 $240,815 
Return on average equity11.26 %13.53 %10.20 %
Add: Average intangible assets4.24 5.29 4.23 
Non-GAAP return on average tangible common equity15.50 %18.82 %14.43 %




Common equity ratio10.52 %10.56 %9.79 %
Less: Intangible assets2.43 2.46 2.43 
Non-GAAP tangible common equity ratio8.09 %8.10 %7.36 %




Book value per share$42.22 $41.66 $39.44 
Less: Intangible assets10.63 10.57 10.58 
Non-GAAP tangible book value per share$31.59 $31.09 $28.86 


7
    
This news release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate” or words of similar meaning, or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.”

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond our control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2022 describes some of these factors, including risk elements in the loan portfolio, the level of the allowance for credit losses, the impact of the COVID-19 pandemic, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.
8
    
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(dollars in thousands)6/30/20233/31/2023% Change6/30/2022
Assets
Cash and cash equivalents$96,873 $107,171 (10)%$444,151 
Interest-bearing deposits in banks99 349 (72)349 
Investment securities available for sale, at fair value449,396 466,506 (4)480,007 
Investment securities held to maturity1,066 1,070 — 2,086 
Mortgage loans held for sale538 473 14 1,444 
Loans, net of unearned income2,510,759 2,466,392 2 2,224,655 
Allowance for loan losses(30,639)(30,118)2 (26,020)
Total loans, net of allowance for loan losses2,480,120 2,436,274 2 2,198,635 
Office properties and equipment, net42,904 42,844 — 43,979 
Cash surrender value of bank-owned life insurance46,789 46,528 1 40,788 
Goodwill and core deposit intangibles87,138 87,527 — 88,309 
Accrued interest receivable and other assets85,230 78,228 9 62,468 
Total Assets$3,290,153 $3,266,970 1 $3,362,216 
Liabilities
Deposits$2,551,718 $2,557,744 — %$2,920,376 
Other Borrowings5,539 5,539 — 5,539 
Subordinated debt, net of issuance cost54,133 54,073 — 53,926 
Federal Home Loan Bank advances305,297 276,727 10 25,307 
Accrued interest payable and other liabilities27,349 27,787 (2)27,944 
Total Liabilities2,944,036 2,921,870 1 3,033,092 
Shareholders' Equity
Common stock82 83 (1)84 
Additional paid-in capital164,945 165,470 — 164,177 
Common stock acquired by benefit plans(1,878)(1,969)5 (2,240)
Retained earnings220,801 215,290 3 191,114 
Accumulated other comprehensive loss(37,833)(33,774)(12)(24,011)
Total Shareholders' Equity346,117 345,100 — 329,124 
Total Liabilities and Shareholders' Equity$3,290,153 $3,266,970 1 $3,362,216 

9
    
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF INCOME
(Unaudited)
Quarter Ended
(dollars in thousands, except per share data)6/30/20233/31/2023% Change6/30/2022% Change
Interest Income
Loans, including fees$36,530 $34,498 6 %$27,304 34 %
Investment securities2,986 3,142 (5)2,338 28 
Other investments and deposits
555 475 17 863 (36)
Total interest income40,071 38,115 5 30,505 31 
Interest Expense
Deposits5,547 3,240 71 %1,103 403 %
Other borrowings55 53 4 54 2 
Subordinated debt expense850 851 — — — 
Federal Home Loan Bank advances
3,313 2,376 39 107 2996 
Total interest expense9,765 6,520 50 1,264 673 
Net interest income30,306 31,595 (4)29,241 4 
Provision for loan losses511 814 (37)591 (14)
Net interest income after provision for loan losses29,795 30,781 (3)28,650 4 
Noninterest Income
Service fees and charges1,230 1,250 (2)%1,257 (2)%
Bank card fees1,715 1,787 (4)1,636 5 
Gain on sale of loans, net26 57 (54)264 (90)
Income from bank-owned life insurance
260 253 3 213 22 
Loss on sale of securities, net— (249)100 — — 
Loss on sale of assets, net(3)(17)82 (6)50 
Other income220 230 (4)322 (32)
Total noninterest income3,448 3,311 4 3,686 (6)
Noninterest Expense
Compensation and benefits12,601 12,439 1 %12,583 — %
Occupancy2,447 2,350 4 2,354 4 
Marketing and advertising442 307 44 648 (32)
Data processing and communication
2,132 2,321 (8)2,533 (16)
Professional fees459 364 26 475 (3)
Forms, printing and supplies204 187 9 253 (19)
Franchise and shares tax541 541 — 391 38 
Regulatory fees401 539 (26)698 (43)
Foreclosed assets, net50 (739)107 (10)600 
Amortization of acquisition intangible
389 446 (13)454 (14)
Provision for credit losses on unfunded commitments151 210 (28)— — 
Other expenses1,142 975 17 1,386 (18)
Total noninterest expense20,959 19,940 5 21,765 (4)
Income before income tax expense
12,284 14,152 (13)10,571 16 
Income tax expense2,503 2,832 (12)2,110 19 
Net income$9,781 $11,320 (14)$8,461 16 
Earnings per share - basic$1.22 $1.40 (13)%$1.04 17 %
Earnings per share - diluted$1.21 $1.39 (13)%$1.03 17 %
Cash dividends declared per common share
$0.25 $0.25 — %$0.23 9 %

10
    
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY FINANCIAL INFORMATION
(Unaudited)
Quarter Ended
(dollars in thousands, except per share data)6/30/20233/31/2023% Change6/30/2022% Change
EARNINGS DATA
Total interest income$40,071 $38,115 5 %$30,505 31 %
Total interest expense9,765 6,520 50 1,264 673 
Net interest income30,306 31,595 (4)29,241 4 
Provision for loan losses511 814 (37)591 (14)
Total noninterest income3,448 3,311 4 3,686 (6)
Total noninterest expense20,959 19,940 5 21,765 (4)
Income tax expense2,503 2,832 (12)2,110 19 
Net income$9,781 $11,320 (14)$8,461 16 
AVERAGE BALANCE SHEET DATA
Total assets$3,250,190 $3,219,856 1 %$3,295,196 (1)%
Total interest-earning assets3,050,335 3,026,421 1 3,088,839 (1)
Total loans2,491,029 2,437,770 2 2,190,721 14 
PPP loans6,100 6,386 (4)15,463 (61)
Total interest-bearing deposits1,707,283 1,698,868 — 1,990,485 (14)
Total interest-bearing liabilities2,039,815 1,973,926 3 2,022,479 1 
Total deposits2,538,800 2,578,369 (2)2,906,568 (13)
Total shareholders' equity348,414 339,311 3 332,640 5 
PER SHARE DATA
Earnings per share - basic$1.22 $1.40 (13)%$1.04 17 %
Earnings per share - diluted1.21 1.39 (13)1.03 17 
Book value at period end42.22 41.66 1 39.44 7 
Tangible book value at period end31.59 31.09 2 28.86 9 
Shares outstanding at period end8,197,859 8,284,130 (1)8,344,095 (2)
Weighted average shares outstanding
Basic8,042,434 8,087,524 (1)%8,129,340 (1)%
Diluted8,079,205 8,136,583 (1)8,185,595 (1)
SELECTED RATIOS (1)
Return on average assets1.21 %1.43 %(15)%1.03 %17 %
Return on average equity11.26 13.53 (17)10.20 10 
Common equity ratio10.52 10.56 — 9.79 7 
Efficiency ratio (2)
62.09 57.12 9 66.10 (6)
Average equity to average assets10.72 10.54 2 10.09 6 
Tier 1 leverage capital ratio (3)
10.78 10.69 1 9.30 16 
Total risk-based capital ratio (3)
14.07 14.00 1 13.74 2 
Net interest margin (4)
3.94 4.18 (6)3.76 5 
SELECTED NON-GAAP RATIOS (1)
Tangible common equity ratio (5)
8.09 %8.10 %— %7.36 %10 %
Return on average tangible common equity (6)
15.50 18.82 (18)14.43 7 

11
    
(1)With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.
(2)The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income.
(3)Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change.
(4)Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%.
(5)Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information.
(6)Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information.
12
    
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION
(Unaudited)
6/30/20233/31/20236/30/2022
(dollars in thousands)OriginatedAcquiredTotalOriginatedAcquiredTotalOriginatedAcquiredTotal
CREDIT QUALITY (1)
Nonaccrual loans(2)
$6,806 $5,364 $12,170 $5,546 $5,686 $11,232 $5,332 $13,165 $18,497 
Accruing loans 90 days or more past due26 — 26 — — — 8 — 8 
Total nonperforming loans6,832 5,364 12,196 5,546 5,686 11,232 5,340 13,165 18,505 
Foreclosed assets and ORE121 80 201 — 80 80 — 277 277 
Total nonperforming assets6,953 5,444 12,397 5,546 5,766 11,312 5,340 13,442 18,782 
Performing troubled debt restructurings— — — — — — 3,939 1,063 5,002 
Total nonperforming assets and troubled debt restructurings$6,953 $5,444 $12,397 $5,546 $5,766 $11,312 $9,279 $14,505 $23,784 
Nonperforming assets to total assets0.38 %0.35 %0.56 %
Nonperforming loans to total assets 0.37 0.34 0.55 
Nonperforming loans to total loans 0.49 0.46 0.83 
(1)It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings.
(2)Nonaccrual loans include originated restructured loans placed on nonaccrual totaling $5.3 million at June 30, 2022. Acquired restructured loans placed on nonaccrual totaled $2.8 million at June 30, 2022. With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated.

13
    
HOME BANCORP, INC. AND SUBSIDIARY
SUMMARY CREDIT QUALITY INFORMATION - CONTINUED
(Unaudited)
6/30/20233/31/20236/30/2022
Collectively EvaluatedIndividually EvaluatedTotalCollectively EvaluatedIndividually EvaluatedTotalCollectively EvaluatedIndividually EvaluatedTotal
ALLOWANCE FOR CREDIT LOSSES
One- to four-family first mortgage$3,200 $— $3,200 $3,356 $— $3,356 $2,158 $— $2,158 
Home equity loans and lines707 — 707 753 — 753 491 — 491 
Commercial real estate14,299 499 14,798 13,344 450 13,794 12,068 1,193 13,261 
Construction and land4,822 — 4,822 4,921 — 4,921 4,689 — 4,689 
Multi-family residential512 — 512 608 — 608 526 — 526 
Commercial and industrial5,734 121 5,855 5,831 143 5,974 3,654 591 4,245 
Consumer745 — 745 712 — 712 650 — 650 
Total allowance for credit losses$30,019 $620 $30,639 $29,525 $593 $30,118 $24,236 $1,784 $26,020 
Unfunded lending commitments(3)
2,454 — 2,454 2,303 — 2,303 2,117 — 2,117 
Total allowance for credit losses$32,473 $620 $33,093 $31,828 $593 $32,421 $26,353 $1,784 $28,137 
Allowance for loan losses to nonperforming assets247.15 %266.25 %138.54 %
Allowance for loan losses to nonperforming loans251.22 %268.14 %140.61 %
Allowance for loan losses to total loans1.22 %1.22 %1.17 %
Allowance for credit losses to total loans1.32 %1.31 %1.26 %
Year-to-date loan charge-offs$137 $93 $844 
Year-to-date loan recoveries152 98 554 
Year-to-date net loan recoveries (charge-offs)$15 $5 $(290)
Annualized YTD net loan recoveries (charge-offs) to average loans— %— %(0.03)%
(3)The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition.
14
Q2 2023 Investor Presentation

 
Certain comments in this presentation contain certain forward looking statements (as defined in the Securities Exchange Act of 1934 and the regulations thereunder). Forward looking statements are not historical facts but instead represent only the beliefs, expectations or opinions of Home Bancorp, Inc. and its management regarding future events, many of which, by their nature, are inherently uncertain. Forward looking statements may be identified by the use of such words as: “believe”, “expect”, “anticipate”, “intend”, “plan”, “estimate”, or words of similar meaning, or future or conditional terms such as “will”, “would”, “should”, “could”, “may”, “likely”, “probably”, or “possibly.” Forward looking statements include, but are not limited to, financial projections and estimates and their underlying assumptions; statements regarding plans, objectives and expectations with respect to future operations, products and services; and statements regarding future performance. Such statements are subject to certain risks, uncertainties and assumption, many of which are difficult to predict and generally are beyond the control of Home Bancorp, Inc. and its management, that could cause actual results to differ materially from those expressed in, or implied or projected by, forward looking statements. The following factors, among others, could cause actual results to differ materially from the anticipated results or other expectations expressed in the forward looking statements: (1) economic and competitive conditions which could affect the volume of loan originations, deposit flows and real estate values; (2) the levels of noninterest income and expense and the amount of loan losses; (3) competitive pressure among depository institutions increasing significantly; (4) changes in the interest rate environment causing reduced interest margins; (5) general economic conditions, either nationally or in the markets in which Home Bancorp, Inc. is or will be doing business, being less favorable than expected; (6) political and social unrest, including acts of war or terrorism; (7) we may not fully realize all the benefits we anticipated in connection with our acquisitions of other institutions or our assumptions made in connection therewith may prove to be inaccurate; (8) the COVID-19 pandemic; (9) cyber incidents or other failures, disruptions or security beaches; or (10) legislation or changes in regulatory requirements adversely affecting the business of Home Bancorp, Inc. Home Bancorp, Inc. undertakes no obligation to update these forward looking statements to reflect events or circumstances that occur after the date on which such statements were made. As used in this report, unless the context otherwise requires, the terms “we,” “our,” “us,” or the “Company” refer to Home Bancorp, Inc. and the term the “Bank” refers to Home Bank, N.A., a national bank and wholly owned subsidiary of the Company. In addition, unless the context otherwise requires, references to the operations of the Company include the operations of the Bank. For a more detailed description of the factors that may affect Home Bancorp’s operating results or the outcomes described in these forward-looking statements, we refer you to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2022. Home Bancorp assumes no obligation to update the forward-looking statements made during this presentation. For more information, please visit our website www.home24bank.com. Non-GAAP Information This presentation contains financial information determined by methods other than in accordance with generally accepted accounting principles (“GAAP”). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this presentation, information is included which excludes acquired loans, intangible assets, impact of the gain (loss) on the sale of a banking center, the impact of merger-related expenses and one-time tax effects. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company’s financial position and core operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP financial information presented by other companies. | 2 Forward-Looking Statements

 
Headquarters: Lafayette, LA Ticker: HBCP (NASDAQ) History: • Founded in 1908 • IPO completed October 2008 • Six acquisitions completed since 2010 • 43 locations across Southern Louisiana, Western Mississippi and Houston Highlights: • Total Assets: $3.3 billion at June 30, 2023 • Market Cap: $280 million at July 12, 2023 • Ownership (S&P Global as of July 12, 2023) • Institutional: 41% • Insider/ESOP: 14% | 3 Our Company Total Assets $3.3B Total Loans $2.5B Total Deposits $2.6B

 
Our Markets | 4

 
Quarterly Financial Highlights 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Profitability Net income $ 4,401 $ 8,461 $ 10,434 $ 10,776 $ 11,320 $ 9,781 Diluted EPS 0.53 1.03 1.28 1.32 1.39 1.21 ROA 0.60 % 1.03 % 1.27 % 1.35 % 1.43 % 1.21 % ROE 5.1 10.2 12.4 13.2 13.5 11.3 ROATCE(1) 6.5 14.4 17.3 18.8 18.8 15.5 Efficiency ratio 67.8 66.1 58.5 57.8 57.1 62.1 Provision for loan losses $ 3,215 $ 591 $ 1,696 $ 1,987 $ 814 $ 511 Core pre-provision net income(1) 6,641 9,530 11,507 11,941 11,559 10,084 Balance Sheet Assets $ 3,332,228 $ 3,362,216 $ 3,167,666 $ 3,228,280 $ 3,266,970 $ 3,290,153 Loans 2,157,969 2,224,655 2,303,279 2,430,750 2,466,392 2,510,759 Cash and cash equivalents 548,019 444,151 150,556 87,401 107,171 96,873 Allowance for loan losses (26,731) (26,020) (27,351) (29,299) (30,118) (30,639) Total deposits 2,941,179 2,920,376 2,738,424 2,633,181 2,557,744 2,551,718 Loan/Deposit 73 % 76 % 84 % 92 % 96 % 98 % Per Share Data Share price $ 40.79 $ 34.13 $ 38.99 $ 40.03 $ 33.03 $ 33.21 Book value 39.93 39.44 38.27 39.82 41.66 42.22 Tangible book value(1) 29.57 28.86 27.66 29.20 31.09 31.59 Price / tangible book value per share 138 % 118 % 141 % 137 % 106 % 105 % Dividend paid $ 0.23 $ 0.23 $ 0.23 $ 0.24 $ 0.25 $ 0.25 (1) See appendix for reconciliation of Non-GAAP items. | 5 (dollars in thousands, except per share data)

 
H om e B an k To ta l A ss et s ($ in m ill io ns ) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Jun-23 YTD 1,000 2,000 3,000 4,000 Acquired Bank Date Assets ($ in MM) (at completion) % of TBV (at announcement) # of Branches Consideration Statewide Bank March 2010 $199 FDIC-assisted 6 All Cash Guaranty Savings Bank July 2011 $257 95% 5 All Cash Britton & Koontz Bank February 2014 $301 90% 8 All Cash Bank of New Orleans September 2015 $346 126% 4 All Cash St. Martin Bank & Trust December 2017 $597 183% 12 ~80% Stock, 20% Cash(1) Texan Bank March 2022 $416 144% 5 All Cash (1) Cash was comprised of an aggregate $19.5 million special cash distribution paid by St. Martin Bancshares to its shareholders. Statewide Bank Guaranty Savings Bank Britton & Koontz Bank Bank of New Orleans St. Martin Bank & Trust CAGR = 13.4% as of June 30, 2023 | 6 Asset Growth Texan Bank

 
($ in millions) $9.9 $12.6 $16.0 $16.8 $31.6 $27.9 $24.8 $48.6 $34.1 $21.1 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $0 $10 $20 $30 $40 $50 $60 Net Income $1.42 $1.79 $2.25 $2.28 $3.40 $3.05 $2.85 $5.77 $4.16 $2.60 Q1 Q2 Q3 Q4 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $0.00 $1.00 $2.00 $3.00 $4.00 $5.00 $6.00 $7.00 Diluted EPS Earnings | 7

 
Profitability 1.46 1.27 0.99 1.76 1.07 1.43 1.21 1.53 1.32 1.12 1.04 1.25 1.46 1.24 GAAP Core pre-provision earnings 2018 2019 2020 2021 2022 1Q 2023 2Q 2023 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% 1.8% 2.0% Return on Average Assets 10.9 9.0 7.8 14.4 10.2 13.5 11.3 11.4 9.3 8.9 8.5 11.8 13.8 11.6 GAAP Core pre-provision earnings 2018 2019 2020 2021 2022 1Q 2023 2Q 2023 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% Return on Average Equity 14.8 11.8 10.2 18.0 13.9 18.8 14.6 14.9 11.8 11.1 10.5 15.6 18.6 15.5 ROATCE Core pre-provision earnings 2018 2019 2020 2021 2022 1Q 2023 2Q 2023 0.0% 2.0% 4.0% 6.0% 8.0% 10.0% 12.0% 14.0% 16.0% 18.0% 20.0% Return on Tangible Common Equity 60.0 63.3 59.1 57.1 62.1 57.1 62.1 59.6 63.5 63.8 64.8 61.2 58.1 61.7 GAAP Core pre-provision earnings 2018 2019 2020 2021 2022 1Q 2023 2Q 2023 50.0% 55.0% 60.0% 65.0% 70.0% Efficiency Ratio (1) See appendix for reconciliation of Non-GAAP items. (1) | 8

 
Lo an B al an ce O ut st an di ng ($ in m ill io ns ) Originated Acquired PPP Loans 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Jun-23 YTD — 500 1,000 1,500 2,000 2,500 3,000 CAGR Excluding PPP Loans: Total Loan CAGR = 15% Originated Loan CAGR = 13% Organic Loan Growth (excludes acquisition accounting & unearned income) | 9

 
Loan Portfolio (as of June 30, 2023) CRE, 47% 1-4 Mortgage, 17% C&I, 15% C&D, 13% Multifamily, 4% Home Equity, 3% Consumer, 1% Composition Market Diversification Acadiana, 30% New Orleans, 28% Houston, 16% Northshore 13% Baton Rouge, 11% MS, 2% CRE Loan Portfolio • Owner Occupied - 53% • Non-owner Occupied - 47% 2Q 2023 annualized growth rate - 6% • Total loans - $2.5 billion • Houston market - 19% 2Q 2023 growth rate | 10

 
Non-Owner Occupied CRE (as of June 30, 2023) | 11 • Average Balance $847K • Approximately 21.9% of total loans • $3.2 million or 0.6% of the N.O.O. portfolio is nonaccrual Retail - Multi-Tenant, 26% Hotel, 21% Office, 15% Other, 9% Warehouse/Industrial, 8% Mixed Use, 7% Retail - Single Tenant, 4% Other Specialty Use, 4% Medical Office, 3% Healthcare, 2% Restaurant/Bar, 1% Office Exposure Zero nonaccrual and criticized loans in office exposure Office Loans Total $81.4 million or 3.2% of total loans Average Office Loan Balance $1.2 million Office Exposure Houston 45 % Baton Rouge 33 % Acadiana 8 % Northshore 7 % New Orleans 6 % Geographic Exposure Geographic Exposure Houston Baton Rouge Acadiana Northshore New Orleans

 
C&D Portfolio (as of June 30, 2023) Lots, Development and Unimproved Land, 25% 1-4 Family Construction, 32% Commercial Construction, 43% Composition | 12 Historic Charge-off (Recovery Rate) Charge-off (recovery) 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Jun-23 YTD (0.10)% —% 0.10% 0.20% 0.30% 0.40% 0.50% Total Balance $327.5 million Average Balance $449.2K $659K net charge-offs since 2009 0.7% on Nonaccrual or $2.3 million

 
($ in m ill io ns ) $1.4 $3.8 $3.7 $(0.7) $1.3 $— $21.1 $29.3 $30.6 Dec 2021 Allowance for Texan Bank Acquired PCD Loans Provision for Texan Loan Portfolio Organic Provision Net Charge- offs Dec 2022 Organic Provision Net Charge- offs Jun 2023 $0 $10 $20 $30 $40 2022 (dollars in thousands) 6/30/2022 9/30/2022 12/31/2022 3/31/2023 6/30/2023 Total Loans $ 2,224,655 $ 2,303,279 $ 2,430,750 $ 2,466,392 $ 2,510,759 Total nonaccrual loans 18,497 17,080 10,513 11,232 12,170 Total special mention loans 3,148 10,761 7,083 9,778 9,511 Total substandard loans 21,984 20,060 21,526 23,519 27,252 Total criticized loans $ 25,132 $ 30,821 $ 28,609 $ 33,297 $ 36,763 Nonaccrual loans / Total loans 0.83 % 0.74 % 0.43 % 0.46 % 0.48 % Criticized loans / Total loans 1.13 % 1.34 % 1.18 % 1.35 % 1.46 % ALL / Total Loans 1.17 % 1.19 % 1.21 % 1.22 % 1.22 % 20232021 Changes in ALL | 13

 
1.16 1.21 1.30 0.77 0.49 0.34 0.38 1.01 0.72 0.75 0.40 0.28 0.14 0.21 NPAs / Total Assets Originated NPAs / Total Assets 2017 2018 2019 2020 2021 2022 Jun-23 YTD 0.0% 0.2% 0.4% 0.6% 0.8% 1.0% 1.2% 1.4% 1.6% NPAs / Assets title — 0.15 0.09 0.12 0.09 0.03 — 2017 2018 2019 2020 2021 2022 Jun-23 YTD 0.00% 0.05% 0.10% 0.15% 0.20% Net Charge-offs / YTD Average Loans 57 63 63 165 146 267 247 ALL / NPAs 2017 2018 2019 2020 2021 2022 Jun-23 YTD 0% 50% 100% 150% 200% 250% ALL / NPAs 1.74 1.94 1.73 1.03 0.83 0.41 0.40%0.82 0.87 1.32 0.74 0.57 0.32 0.35% Past Due Loans / Loans Originated Past Due / Originated Loans 2017 2018 2019 2020 2021 2022 Jun-23 YTD 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% Loans Past Due Credit Quality Trends | 14

 
Investment Portfolio | 15 (dollars in millions) Book Value Gain/(loss) Eff. Duration MBS $234 $(27) 4.8 CMBS 163 (14) 3.4 Muni 57 (8) 6.7 CMO 21 (1) 4.5 Agency 20 (1) 3.2 Corp 7 (1) 2.3 Total $504 -$53 4.5 10 Year Investment Cash Flow 5% 12% 23% 38% 53% 64% 72% 78% 83% 87% 90% Expected Principal Cash Flows (dollars in thousands Percentage of Cash Flows FYE 2023 FYE 2024 FYE 2025 FYE 2026 FYE 2027 FYE 2028 FYE 2029 FYE 2030 FYE 2031 FYE 2032 FYE 2033 $— $10,000 $20,000 $30,000 $40,000 $50,000 $60,000 $70,000 $80,000 $90,000 —% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% MBS 47% CMBS 33% Muni 11% CMO 4% Agency 4% Corp 1% 14% of total assets 2.37% Q2 yield $53.2 million loss approximately 10.6% of book value 99.8% AFS $6.1 million MV decline in Q2 $11.0 million decline in book value QoQ

 
Acadiana 55% New Orleans 14% Houston 10% Northshore 9% Mississippi, 7% Baton Rouge, 4% $ in m ill io ns 25% 24% 28% 30% 34% 33% 27% 28% 29% 31% 25% 25% 20% 22% 17% 13% 13% 18% 17% 15% 15% 15% 16% 14% 11% 11% 11% 11% 12% 10% Demand deposits NOW Certificates of deposit Money Market Savings Balance 2018 2019 2020 2021 2022 Jun 2023 $1,600 $2,000 $2,400 $2,800 Change (dollars in thousands) 6/30/2022 3/31/2023 6/30/2023 QoQ YoY Demand Deposits $ 938,531 $ 854,736 $ 816,555 $ (38,181) $ (121,976) Savings 316,974 288,788 261,780 (27,008) (55,194) Money Market 483,951 384,809 363,801 (21,008) (120,150) NOW 791,692 657,499 645,087 (12,412) (146,605) CDs 389,228 371,912 464,495 92,583 75,267 Total Deposits $ 2,920,376 $ 2,557,744 $ 2,551,718 $ (6,026) $ (368,658) Deposits (as of June 30, 2023) | 16 $31,629 Average deposit size 33% Non-interest bearing deposit composition

 
Deposits (as of June 30, 2023) | 17 Retail Business Public Broker Total FDIC Insured 44% 19% —% —% 63% Uninsured (1) 6 17 — — 23 Reciprocal — 4 — — 4 Public Funds — — 8 — 8 Brokered Deposits — — — 2 2 Total 50% 40% 8% 2% 100% Cost of Deposits 0.15 0.17 0.23 0.41 0.62 0.930.46 0.42 0.42 0.57 1.38 2.49 Non-maturity deposits Certificates of deposit 1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 — 0.25 0.50 0.75 1.00 1.25 1.50 1.75 2.00 2.25 2.50 2.75 (1) Over FDIC limit and not collateralized (2) Uninsured deposits divided by total primary funding sources Funding Availability (in thousands) Q2 2023 FHLB availability $ 897,776 FRB - Bank Term Funding Program 109,379 Unencumbered investments (book) 72,354 FRB discount window 500 Total primary funding sources $ 1,080,009 Fed fund lines 55,000 Total primary and secondary liquidity $ 1,135,009 Uninsured Deposits(1) Approximately $570 million or 23% of total deposits Coverage of Uninsured Deposits(2) 189%

 
3.39 3.76 4.11 4.38 4.18 3.94 NIM 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 3.00% 3.50% 4.00% 4.50% NIM (TE) 4.88 4.94 5.17 5.43 5.67 5.82 Loan Yield 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 4.50% 5.00% 5.50% 6.00% Yield on Loans 0.24 0.25 0.46 0.70 1.33 1.91 1Q 22 2Q 22 3Q 22 4Q 22 1Q 23 2Q 23 0.0% 1.0% 2.0% 3.0% Cost of Interest-Bearing Liabilities Yields | 18 Short-term FHLB advances at June 2023 was $262 million with a cost of 5.12% NIM decreased 24 bps for the quarter ended June 2023 1.30% Cost of interest-bearing deposits for the quarter ended June 2023

 
Rate Shock 1 Year % Change in NII -100 (1.5)% +100 0.7% +200 1.1% +300 1.6% % of assets 2019 2022 Q2 2023 Q2 Cash 2% 13% 3% Investments 12% 14% 14% Loans, excluding PPP 78% 66% 76% Other Assets 8% 7% 7% NMD - noninterest-bearing 20% 28% 25% NMD - interest-bearing 45% 47% 39% CDs 18% 12% 14% Total Deposits 83% 87% 78% Advances 2% 1% 9% Subordinated Debt —% 2% 2% Other 1% 1% 1% Equity 14% 10% 11% Loan portfolio effective duration ~ 2.5 (based on management estimates) Cost of 2Q2016 - 3Q2019 3Q2019 - 1Q2022 1Q2022 - 2Q2023 Interest-bearing deposits 36% 40% 22% Total deposits 27% 31% 15% Interest-bearing liabilities 33% 40% 33% Funding earning assets 23% 29% 22% Interest Rate Risk Forecasted Change in NII Liability Betas Historical Funding Betas Balance Sheet Composition | 19 Fed Funds Effective Cost of Deposits Cost of Funding Earning Assets Q2- 16 Q3- 16 Q4- 16 Q1- 17 Q2- 17 Q3- 17 Q4- 17 Q1- 18 Q2- 18 Q3- 18 Q4- 18 Q1- 19 Q2- 19 Q3- 19 Q4- 19 Q1- 20 Q2- 20 Q3- 20 Q4- 20 Q1- 21 Q2- 21 Q3- 21 Q4- 21 Q1- 22 Q2- 22 Q3- 22 Q4- 22 Q1- 23 Q2- 23 —% 1.00% 2.00% 3.00% 4.00% 5.00% Investment Portfolio effective duration = 4.5 32% of loan portfolio is variable

 
0.62 0.62 0.62 0.57 0.54 0.44 0.44 2017 2018 2019 2020 2021 2022 Jun-23 YTD 0.40% 0.45% 0.50% 0.55% 0.60% 0.65% Noninterest Income(1) / Assets 2.79 2.83 2.87 2.53 2.41 2.51 2.50 2017 2018 2019 2020 2021 2022 Jun-23 YTD 2.00% 2.50% 3.00% 3.50% Noninterest Expense(1) / Assets (1) Excludes non-core items. See appendix for reconciliation of non-GAAP items. (dollars in thousands) 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Service fees and charges $ 1,257 $ 1,300 $ 1,198 $ 1,250 $ 1,230 Bank card fees 1,636 1,623 1,566 1,787 1,715 Gain on sale of loans 264 78 22 57 26 Loss on sale of securities, net — — — (249) — Loss on sale of assets, net (6) 18 9 (17) (3) Other 535 455 544 483 480 Total noninterest income $ 3,686 $ 3,474 $ 3,339 $ 3,311 $ 3,448 Noninterest income less loss on sale of securities and assets $ 3,692 $ 3,456 $ 3,330 $ 3,577 $ 3,451 (dollars in thousands) 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Compensation $ 12,583 $ 12,128 $ 12,880 $ 12,439 $ 12,601 Data processing 2,533 2,284 2,295 2,321 2,132 Occupancy 2,354 2,297 2,261 2,350 2,447 Provision for unfunded — 146 (170) 210 151 Other 4,295 3,868 3,915 2,620 3,628 Total noninterest expense $ 21,765 $ 20,723 $ 21,181 $ 19,940 $ 20,959 Merger expenses 1,583 60 — — — Foreclosed asset recovery (739) — Noninterest expense excl. provision for unfunded and merger expenses $ 20,182 $ 20,517 $ 21,351 $ 20,469 $ 20,808 Noninterest Income & Expense | 20

 
$0.41 $0.55 $0.71 $0.84 $0.88 $0.91 $0.93 $0.50 Q1 Q2 Q3 Q4 2016 2017 2018 2019 2020 2021 2022 2023 $0.00 $0.25 $0.50 $0.75 $1.00 Dividends Per Share 25.16 27.22 29.60 34.00 29.57 29.20 31.5925.39 27.15 29.00 33.92 31.16 33.95 36.21 Tangible book value Tangible book value excluding AOCI 2018 2019 2020 2021 March 2022 2022 June 2023 $20 $25 $30 $35 $40 Tangible Book Value Share Repurchase Activity Year # Shares Average Price Cash Utilized 2018 30,887 $ 38.66 $ 1,194,061 2019 419,498 36.82 15,444,895 2020 530,504 26.41 14,011,605 2021 246,012 36.18 8,900,409 2022 288,350 39.30 11,333,399 2023 (as of 7/12/2023) 115,740 31.75 3,675,002 Total 1,630,991 $ 33.45 $ 54,559,371 Capital | 21 ~ 80,000 shares remaining in current plan as of July 12, 2023 Cash dividend of $0.25 per share payable on August 10, 2023 13% Shares repurchased since 2017 8.2% CAGR TBV / share, excluding AOCI since 2018 Cash acquisition - Texan Bank

 
9.7 9.8 10.4 10.7 10.8 13.9 14.7 12.4 12.8 12.8 15.2 15.9 13.6 14.0 14.1 Tier 1 leverage capital Common equity tier 1 Total risk-based capital 2020 2021 2022 1Q 2023 2Q 2023 0% 5% 10% 15% 20% Capital Ratios (Bank only) Capital | 22 As Reported Including AOCI Losses (1) Common Equity Tier 1 capital 12.8% 11.4% Tier 1 risk based capital 12.8% 11.4% Total risk based capital 14.1% 12.6% Tier 1 leverage capital 10.8% 9.6% (1) Assumes AOCI adjustments related to market valuations on securities and interest rate derivatives are included for regulatory capital calculations. Regulatory Capital and Adjusted Capital as of 6/30/2023

 
Investment Perspective | 23

 
| 24

 
1Q 2022 2Q 2022 3Q 2022 4Q 2022 1Q 2023 2Q 2023 Total shareholders' equity $ 337,504 $ 329,124 $ 316,656 $ 329,954 $ 345,100 $ 346,117 Less: intangible assets 87,569 88,309 87,839 87,973 87,527 87,138 Non-GAAP tangible shareholders' equity $ 249,935 $ 240,815 $ 228,817 $ 241,981 $ 257,573 $ 258,979 Reported net income $ 4,401 $ 8,461 $ 10,434 $ 10,776 $ 11,320 $ 9,781 Add: amortization CDI, net tax 199 359 358 350 352 307 Non-GAAP tangible net income $ 4,600 $ 8,820 $ 10,792 $ 11,126 $ 11,672 $ 10,088 Return on average equity 5.1 % 10.2 % 12.4 % 13.2 % 13.5 % 11.3 % Add: intangible assets 1.4 4.2 4.9 5.6 5.3 4.2 Non-GAAP return on tangible common equity 6.5 % 14.4 % 17.3 % 18.8 % 18.8 % 15.5 % Book value per share $ 39.93 $ 39.44 $ 38.27 $ 39.82 $ 41.66 $ 42.22 Less: intangible assets 10.36 10.58 10.61 10.62 10.57 10.63 Non-GAAP tangible book value per share $ 29.57 $ 28.86 $ 27.66 $ 29.20 $ 31.09 $ 31.59 Reported net income $ 4,401 $ 8,461 $ 10,434 $ 10,776 $ 11,320 $ 9,781 Less: PPP loan income 799 402 132 26 26 24 Less: gain (loss) on sale of assets 5 (6) 18 9 (17) (3) Less: gain(loss) on sale of securities — — — — (249) — Less: loan discount accretion 457 879 847 750 668 647 Add: provision for loan losses 3,215 591 1,696 1,987 814 511 Add: provision (reversal) for credit losses on unfunded commitments 302 — 146 (170) 210 151 Add: CDI amortization 252 454 453 443 446 389 Add: One-time recovery of foreclosed asset — — — — (739) — Add: merger-related expenses 328 1,583 60 — — — Total non-core items, net of taxes 2,240 1,069 1,073 1,165 239 303 Core pre-provision net income (1) $ 6,641 $ 9,530 $ 11,507 $ 11,941 $ 11,559 $ 10,084 Appendix (non-GAAP reconciliation) | 25 (dollars in thousands, except per share data)

 
2018 2019 2020 2021 2022 Jun-23 YTD Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 329,954 $ 346,117 Less: intangible assets 66,055 64,472 63,112 61,949 87,973 87,138 Non-GAAP tangible shareholders' equity $ 237,985 $ 251,857 $ 258,730 $ 289,954 $ 241,981 $ 258,979 Reported net income $ 31,590 $ 27,932 $ 24,765 $ 48,621 $ 34,072 $ 21,101 Add: amortization CDI, net tax 1,458 1,251 1,074 919 1,266 660 Non-GAAP tangible income $ 33,048 $ 29,183 $ 25,839 $ 49,540 $ 35,338 $ 21,761 Return on average equity 10.9 % 9.0 % 7.8 % 14.4 % 10.2 % 12.4 % Add: intangible assets 3.9 2.8 2.4 3.6 3.7 4.7 Non-GAAP return on tangible common equity 14.8 % 11.8 % 10.2 % 18.0 % 13.9 % 17.1 % Originated loans $ 1,095,160 $ 1,251,201 $ 1,625,139 $ 1,593,769 $ 1,961,425 $ 2,071,886 Acquired loans 554,594 463,160 354,815 246,324 469,325 438,873 Total loans $ 1,649,754 $ 1,714,361 $ 1,979,954 $ 1,840,093 $ 2,430,750 $ 2,510,759 Originated NPAs $ 15,526 $ 16,421 $ 10,353 $ 8,348 $ 4,489 $ 6,953 Acquired NPAs 10,444 12,121 9,628 6,116 6,487 5,444 Total NPAs $ 25,970 $ 28,542 $ 19,981 $ 14,464 $ 10,976 $ 12,397 Originated past due loans $ 9,549 $ 16,541 $ 12,070 $ 9,071 $ 6,215 $ 7,260 Acquired past due loans 22,493 13,098 8,335 6,146 3,683 2,764 Total past due loans $ 32,042 $ 29,639 $ 20,405 $ 15,217 $ 9,898 $ 10,024 Average assets $ 2,160,942 $ 2,198,483 $ 2,491,612 $ 2,765,878 $ 3,178,862 $ 3,235,107 Less: average PPP loans — — 169,665 169,149 15,691 6,242 Average assets excluding PPP loans $ 2,160,942 $ 2,198,483 $ 2,321,947 $ 2,596,729 $ 3,163,171 $ 3,228,865 Appendix (non-GAAP reconciliation) | 26 (dollars in thousands)

 
2018 2019 2020 2021 2022 Jun-23 YTD Reported noninterest income $ 13,447 $ 14,415 $ 14,305 $ 16,271 $ 13,885 $ 6,759 Less: BOLI benefit — 1,194 — 1,717 — — Less: gain (loss) on sale of securities — — — — — (249) Less: gain (loss) on sale of assets — (347) — (504) 26 (20) Non-GAAP noninterest income $ 13,447 $ 13,568 $ 14,305 $ 15,058 $ 13,859 $ 7,028 Reported noninterest expense $ 63,225 $ 63,605 $ 62,981 $ 66,982 $ 81,909 $ 40,899 Less: lease termination — 291 — — — — Less: severance pay — 287 — — — — Less: one-time foreclosed asset recovery — — — — — 739 Less: merger-related expenses 2,010 — — 299 1,971 — Non-GAAP noninterest expense $ 61,215 $ 63,027 $ 62,981 $ 66,683 $ 79,938 $ 40,160 Reported net income $ 31,590 $ 27,932 $ 24,765 $ 48,621 $ 34,072 $ 21,101 Less: PPP loan income — — 5,895 13,208 1,359 50 Less: Write of FDIC loss share receivable — (680) — — — — Less: BOLI benefit — 1,194 — 1,717 — — Less: gain (loss) on sale of assets — (347) — (504) 26 (20) Less: gain (loss) on sale of securities — — — — — (249) Less: loan discount accretion 5,805 3,503 4,097 2,361 2,933 1,315 Add: provision (reversal) for loan losses 3,943 3,014 12,728 (10,161) 7,489 1,325 Add: provision for credit losses on unfunded commitments — — — 390 278 361 Add: CDI amortization 1,845 1,583 1,360 1,163 1,602 835 Add: lease termination — 291 — — — — Add: severance pay — 287 — — — — Add: one-time foreclosed asset recovery — — — — — (739) Add: merger-related expenses 2,010 — — 299 1,971 — Non-core items, net of taxes 1,575 1,189 3,236 (19,822) 5,547 542 Core pre-provision net income (1) $ 33,165 $ 29,121 $ 28,001 $ 28,799 $ 39,619 $ 21,643 (1) Core pre-provision net income - removes the impact of one time items, PPP income, provision for credit losses, loan discount accretion and CDI. Appendix (non-GAAP reconciliation) | 27 (dollars in thousands)

 
2018 2019 2020 2021 1Q2022 2022 1Q2023 Jun-23 YTD Total shareholders' equity $ 304,040 $ 316,329 $ 321,842 $ 351,903 $ 337,504 $ 329,954 $ 345,100 $ 346,117 Less: intangible assets 66,055 64,472 63,112 61,949 87,569 87,973 87,527 87,138 Non-GAAP tangible shareholders' equity $ 237,985 $ 251,857 $ 258,730 $ 289,954 $ 249,935 $ 241,981 $ 257,573 $ 258,979 Less: AOCI (2,206) 692 5,274 744 (13,465) (39,307) (33,774) (37,833) Non-GAAP tangible shareholders' equity AOCI adjusted $ 240,191 $ 251,165 $ 253,456 $ 289,210 $ 263,400 $ 281,288 $ 291,347 $ 296,812 Shares Outstanding 9,459,050 9,252,418 8,740,104 8,526,907 8,453,014 8,286,084 8,284,130 8,197,859 Book value per share $ 32.14 $ 34.19 $ 36.82 $ 41.27 $ 39.93 $ 39.82 $ 41.66 $ 42.22 Less: intangible assets 6.98 6.97 7.22 7.27 10.36 10.62 10.57 10.63 Non-GAAP tangible book value per share $ 25.16 $ 27.22 $ 29.60 $ 34.00 $ 29.57 $ 29.20 $ 31.09 $ 31.59 Less: AOCI (0.23) 0.07 0.60 0.08 (1.59) (4.75) (4.08) (4.62) Non-GAAP tangible book value per share AOCI adjusted $ 25.39 $ 27.15 $ 29.00 $ 33.92 $ 31.16 $ 33.95 $ 35.17 $ 36.21 Appendix (non-GAAP reconciliation) | 28 (dollars in thousands)