Home Bancorp(HBCP) - 2025 Q3 - Quarterly Results

Third Quarter 2025 Earnings Announcement Home Bancorp, Inc. announces strong financial results for Q3 2025, with increased net income, diluted EPS, and a 7% dividend hike 1.1 Executive Summary Home Bancorp, Inc. achieved strong financial results in the third quarter of 2025, with net income and diluted earnings per share increasing quarter-over-quarter, alongside a 7% increase in quarterly dividends | Metric | Q3 2025 | Q2 2025 | QoQ Change | | :--- | :--- | :--- | :--- | | Net Income | $12.4 Million | $11.3 Million | Increased $1.1 Million | | Diluted EPS | $1.59 | $1.45 | Increased $0.14 | | Quarterly Dividend | Increased 7% | - | - | 1.2 CEO Commentary John W. Bordelon, President and CEO, stated that third-quarter results reflect the company's continued strength and stability, with improved deposit growth reducing the loan-to-deposit ratio to the 91% target despite slower loan originations, while financial performance remained strong with a 1.41% ROA and a 6 basis point NIM expansion to 4.10% - The company's third-quarter results reflect continued strength and stability[2] - Loan origination slowed, but improved deposit growth reduced the loan-to-deposit ratio to the 91% target[2] | Metric | Q3 2025 | QoQ Change | | :--- | :--- | :--- | | Return on Assets (ROA) | 1.41% | - | | Net Interest Margin (NIM) | 4.10% | Expanded 6 basis points | | Loan-to-Deposit Ratio | 91% | Reduced to target level | - Credit metrics show an increase in nonperforming and criticized loans, but the company does not anticipate losses and is focused on proactively identifying and resolving problem loans[2] 1.3 Third Quarter 2025 Key Highlights In Q3 2025, total loans decreased by 2.1%, while total deposits grew by 2.3%; net interest income increased by 2%, and net interest margin expanded to 4.10%, despite an increase in nonperforming assets, the company recorded a $229,000 reversal of provision for credit losses | Metric | As of Sep 30, 2025 | QoQ Change | | :--- | :--- | :--- | | Total Loans | $2.7 Billion | Decreased $58.6 Million (2.1%) | | Total Deposits | $3.0 Billion | Increased $67.3 Million (2.3%) | | Net Interest Income | $34.1 Million | Increased $755,000 (2%) | | Net Interest Margin (NIM) | 4.10% | Expanded from 4.04% last quarter | | Total Nonperforming Assets | $30.9 Million (0.88% of total assets) | Increased from $25.4 Million (0.73% of total assets) last quarter | | Provision for Credit Losses | Reversal of $229,000 | Improved from $489,000 provision last quarter | Detailed Financial Review This section provides an in-depth analysis of the company's financial performance, covering loans, credit quality, investments, deposits, net interest income, noninterest income and expense, capital, and shareholder returns 2.1 Loans As of September 30, 2025, total loans were $2.7 billion, a 2.1% decrease from June 30, 2025, primarily due to slower originations and higher-than-expected repayments, with the average loan yield increasing by 3 basis points quarter-over-quarter to 6.53% | Metric | As of Sep 30, 2025 (in thousands) | As of Jun 30, 2025 (in thousands) | Change Amount (in thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Real Estate Loans | $2,262,616 | $2,311,874 | $(49,258) | (2)% | | Total Other Loans | $443,279 | $452,664 | $(9,385) | (2)% | | Total Loans | $2,705,895 | $2,764,538 | $(58,643) | (2)% | | Average Loan Yield | 6.53% | 6.50% | Increased 3 basis points | - | - The decrease in loans is primarily attributable to slower loan originations and higher-than-usual repayments[5] 2.2 Credit Quality and Allowance for Credit Losses As of September 30, 2025, total nonperforming assets (NPAs) increased to $30.9 million, representing 0.88% of total assets, mainly due to five loan relationships being placed on nonaccrual status; the company recorded a $229,000 reversal of provision for credit losses in Q3, compared to a $489,000 provision in the prior quarter, with total allowance for credit losses at $32.8 million, or 1.21% of total loans | Metric | As of Sep 30, 2025 | As of Jun 30, 2025 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Nonperforming Assets (NPAs) | $30.9 Million | $25.4 Million | Increased $5.5 Million | 22% | | NPAs as % of Total Assets | 0.88% | 0.73% | Increased 0.15% | - | | Net Loan Charge-offs | $376,000 | $335,000 | Increased $41,000 | 12.2% | | Provision for Credit Losses | Reversal of $229,000 | Provision of $489,000 | Improved $718,000 | - | | Total Allowance for Credit Losses | $32.8 Million | $33.4 Million | Decreased $0.6 Million | (1.8%) | | Allowance for Credit Losses as % of Total Loans | 1.21% | 1.21% | No change | - | - The increase in nonperforming assets is primarily due to five loan relationships totaling $9.4 million being placed on nonaccrual status, partially offset by repayments[6] Loan Portfolio Credit Quality Classification (as of Sep 30, 2025) | Classification | Pass (in thousands) | Special Mention (in thousands) | Substandard (in thousands) | Total (in thousands) | | :--- | :--- | :--- | :--- | :--- | | Real Estate Loans | $2,207,966 | $3,067 | $50,576 | $2,262,616 | | Other Loans | $436,220 | $0 | $7,059 | $443,279 | | Total | $2,644,293 | $3,959 | $57,643 | $2,705,895 | 2.3 Investment Securities As of September 30, 2025, the company's total investment securities portfolio was $384.4 million, a 3% decrease from the prior quarter, with net unrealized loss positions improving from $30.2 million to $26.5 million, and an effective duration of 3.5 years | Metric | As of Sep 30, 2025 | As of Jun 30, 2025 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Investment Securities Portfolio | $384.4 Million | $394.5 Million | Decreased $10.1 Million | (3)% | | Net Unrealized Loss | $26.5 Million | $30.2 Million | Improved $3.7 Million | - | | Effective Duration | 3.5 Years | 3.6 Years | Decreased 0.1 Years | - | | Securities Purchases | $4.3 Million | $4.5 Million | Decreased $0.2 Million | (4.4%) | - The company made no securities sales during the third and second quarters[10] Investment Securities Portfolio Composition (as of Sep 30, 2025) | Type | Amortized Cost (in thousands) | Fair Value (in thousands) | | :--- | :--- | :--- | | Total Available-for-Sale Securities | $409,842 | $383,340 | | Total Held-to-Maturity Securities | $1,065 | $1,066 | | Total | $410,907 | $384,406 | - As of September 30, 2025, approximately 36% of the investment securities portfolio was pledged to secure public deposits[12] 2.4 Deposits As of September 30, 2025, total deposits were $3.0 billion, a 2% increase quarter-over-quarter, with non-maturity deposits growing by 3% to $2.1 billion, and the average rate on interest-bearing deposits increasing by 5 basis points to 2.57% | Metric | As of Sep 30, 2025 (in thousands) | As of Jun 30, 2025 (in thousands) | Change Amount (in thousands) | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Deposits | $2,975,503 | $2,908,234 | $67,269 | 2% | | Non-Maturity Deposits | $2.1 Billion | - | Increased $52.6 Million | 3% | | Average Rate on Interest-Bearing Deposits | 2.57% | 2.52% | Increased 5 basis points | - | Deposit Type Changes (in thousands) | Deposit Type | As of Sep 30, 2025 | As of Jun 30, 2025 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Demand Deposits | $801,974 | $796,844 | $5,130 | 1% | | Savings | $200,135 | $204,191 | $(4,056) | (2)% | | Money Market | $499,404 | $463,332 | $36,072 | 8% | | NOW Accounts | $641,204 | $625,793 | $15,411 | 2% | | Certificates of Deposit | $832,786 | $818,074 | $14,712 | 2% | | Total Deposits | $2,975,503 | $2,908,234 | $67,269 | 2% | Deposit Customer Type Breakdown | Customer Type | As of Sep 30, 2025 | As of Jun 30, 2025 | | :--- | :--- | :--- | | Consumer | 52% | 52% | | Small Business | 39% | 38% | | Public Funds | 6% | 7% | | Brokered | 3% | 3% | | Total | 100% | 100% | - As of September 30, 2025, total uninsured deposits were $894.8 million, with public funds exceeding FDIC insurance limits being fully collateralized[16] 2.5 Net Interest Income and Net Interest Margin Net Interest Margin (NIM) increased by 6 basis points quarter-over-quarter to 4.10% in Q3 2025, driven by higher average yields on interest-earning assets and lower average balances and costs of interest-bearing liabilities, while the average cost of interest-bearing deposits rose by 5 basis points, primarily due to shifts to higher-cost CDs and money market accounts | Metric | Q3 2025 | Q2 2025 | Change | | :--- | :--- | :--- | :--- | | Net Interest Margin (NIM) | 4.10% | 4.04% | Increased 6 basis points | | Average Cost of Interest-Bearing Deposits | 2.57% | 2.52% | Increased 5 basis points | | Average Balance of Other Interest-Earning Assets | $99.7 Million | $71.1 Million | Increased $28.6 Million (40%) | | Average Balance of FHLB Advances | $39.4 Million | $114.0 Million | Decreased $74.6 Million (65%) | | Loan Accretion Income on Acquired Loans | $347,000 | $356,000 | Decreased $9,000 (3%) | - NIM growth was primarily due to higher average yields on interest-earning assets and lower average balances and costs of interest-bearing liabilities[17] - The increase in deposit costs was mainly due to a shift to higher-cost Certificates of Deposit and Money Market accounts, coupled with a reduction in lower-cost checking and savings accounts[18] 2.6 Noninterest Income Total noninterest income for Q3 2025 was $3.7 million, a 1% increase quarter-over-quarter, primarily driven by higher service charges and fees, gains on loan sales, and other income, partially offset by a decrease in bank card fees | Metric | Q3 2025 | Q2 2025 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Noninterest Income | $3.7 Million | $3.7 Million | Increased $22,000 | 1% | | Service Charges and Fees | Increased $63,000 | - | - | - | | Gains on Loan Sales | Increased $30,000 | - | - | - | | Other Income | Increased $25,000 | - | - | - | | Bank Card Fees | Decreased $104,000 | - | - | - | 2.7 Noninterest Expense Total noninterest expense for Q3 2025 was $22.5 million, a 1% increase quarter-over-quarter, mainly due to the absence of a prior quarter's reversal of provision for credit losses on unfunded commitments and higher salaries and benefits, partially offset by decreases in other expenses and data processing and communication costs | Metric | Q3 2025 | Q2 2025 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Noninterest Expense | $22.5 Million | $22.4 Million | Increased $124,000 | 1% | | Reversal of Provision for Credit Losses on Unfunded Commitments | None | $970,000 Reversal | Increased $970,000 | - | | Salaries and Benefits Expense | Increased $209,000 | - | - | - | | Other Expenses | Decreased $956,000 | - | - | - | | Data Processing and Communication | Decreased $72,000 | - | - | - | 2.8 Capital Position As of September 30, 2025, total shareholders' equity was $423.0 million, a 3% increase quarter-over-quarter, primarily due to company earnings and a reduction in accumulated other comprehensive loss on available-for-sale investment securities, partially offset by shareholder dividends, with both the Tier 1 leverage ratio and total risk-based capital ratio improving | Metric | As of Sep 30, 2025 | As of Jun 30, 2025 | Change Amount | Change Percentage | | :--- | :--- | :--- | :--- | :--- | | Total Shareholders' Equity | $423.0 Million | $408.8 Million | Increased $14.2 Million | 3% | | Tier 1 Leverage Capital Ratio (Preliminary) | 11.90% | 11.47% | Increased 0.43% | - | | Total Risk-Based Capital Ratio (Preliminary) | 15.24% | 14.66% | Increased 0.58% | - | - The increase in shareholders' equity was primarily due to $12.4 million in company earnings and a reduction in accumulated other comprehensive loss on available-for-sale investment securities, partially offset by shareholder dividends[23] 2.9 Dividend and Share Repurchases The Board of Directors declared a 7% increase in the quarterly cash dividend to $0.31 per share; during Q3, the company repurchased 100 shares of common stock at an average price of $52.29 per share, with 390,972 shares remaining under the 2025 repurchase plan, and book value per share and tangible book value per share at $54.05 and $43.29, respectively, as of September 30, 2025 | Metric | Q3 2025 | | :--- | :--- | | Quarterly Cash Dividend | $0.31/share (Increased 7% from prior quarter) | | Common Stock Repurchased | 100 shares | | Average Repurchase Price | $52.29/share | | Shares Remaining Under 2025 Repurchase Plan | 390,972 shares | | Book Value Per Share (as of 9/30/2025) | $54.05 | | Tangible Book Value Per Share (as of 9/30/2025) | $43.29 | Supplemental Information This section provides additional context, including details on the earnings conference call, reconciliation of non-GAAP financial measures, and important forward-looking statements 3.1 Conference Call Details Company management will host a conference call on Tuesday, October 21, 2025, at 10:30 AM CDT to discuss Q3 2025 results, with investor presentations and replays available on the company's investor relations website - The conference call will be held on Tuesday, October 21, 2025, at 10:30 AM CDT[27] - The investor presentation and a replay of the call will be available on Home Bancorp, Inc.'s investor relations website[27][28] 3.2 Non-GAAP Reconciliation This press release includes non-GAAP financial information used by management to analyze performance and provide a comprehensive understanding of the company's financial condition and operating results, noting that non-GAAP information should not replace GAAP financials and may not be comparable to other companies' disclosures - Company management uses non-GAAP financial information to analyze performance and believes it is helpful for a comprehensive understanding of the company's financial condition and operating results[29] Non-GAAP Financial Measures Reconciliation (in thousands, except per share data) | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Reported Net Income | $12,357 | $11,330 | $10,964 | $9,673 | $9,437 | | Non-GAAP Tangible Income | $12,569 | $11,543 | $11,195 | $9,923 | $9,687 | | Total Assets | $3,494,074 | $3,491,455 | $3,485,453 | $3,443,668 | $3,441,990 | | Non-GAAP Tangible Assets | $3,409,860 | $3,406,973 | $3,400,702 | $3,358,624 | $3,356,629 | | Total Shareholders' Equity | $423,044 | $408,818 | $402,831 | $396,088 | $393,453 | | Non-GAAP Tangible Shareholders' Equity | $338,830 | $324,336 | $318,080 | $311,044 | $308,092 | | Return on Average Equity | 11.78% | 11.24% | 11.02% | 9.71% | 9.76% | | Return on Average Tangible Common Equity (Non-GAAP) | 15.02% | 14.48% | 14.25% | 12.70% | 12.90% | | Common Equity Ratio | 12.11% | 11.71% | 11.56% | 11.50% | 11.43% | | Tangible Common Equity Ratio (Non-GAAP) | 9.94% | 9.52% | 9.35% | 9.26% | 9.18% | | Book Value Per Share | $54.05 | $52.36 | $50.82 | $48.95 | $48.75 | | Tangible Book Value Per Share (Non-GAAP) | $43.29 | $41.54 | $40.13 | $38.44 | $38.17 | 3.3 Forward-Looking Statements This press release contains forward-looking statements that are inherently subject to risks and uncertainties, which could cause actual results to differ materially from expectations, and the company undertakes no obligation to update these statements to reflect events or circumstances occurring after their release - Forward-looking statements are inherently subject to risks and uncertainties that could cause actual results to differ materially from expectations[31] - Risk factors include elements of risk in the loan portfolio, risks related to deposit activities, level of allowance for credit losses, growth strategy risks, geographic concentration of business, reliance on management team, market interest rate risks, and regulatory and competitive risks[31] - The company undertakes no obligation to update forward-looking statements to reflect events or circumstances occurring after their release[31] Financial Statements This section presents the company's condensed financial statements, including the statements of financial condition, income, and summary financial information, along with detailed net interest margin and credit quality tables 4.1 Condensed Statements of Financial Condition As of September 30, 2025, the company reported total assets of $3.494 billion, total liabilities of $3.071 billion, and total shareholders' equity of $423.0 million Condensed Statements of Financial Condition (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $189,324 | $112,595 | $135,877 | | Loans, Net of Unearned Income | $2,705,895 | $2,764,538 | $2,668,286 | | Allowance for Credit Losses | $(32,827) | $(33,432) | $(32,278) | | Total Assets | $3,494,074 | $3,491,455 | $3,441,990 | | Deposits | $2,975,503 | $2,908,234 | $2,777,487 | | Federal Home Loan Bank Advances | $3,059 | $88,196 | $38,410 | | Total Liabilities | $3,071,030 | $3,082,637 | $3,048,537 | | Total Shareholders' Equity | $423,044 | $408,818 | $393,453 | 4.2 Condensed Statements of Income For Q3 2025, the company reported net interest income of $34.106 million, net income of $12.357 million, and diluted earnings per share of $1.59, showing significant growth in net income and EPS compared to the prior year Condensed Statements of Income (in thousands, except per share data) | Metric | Q3 2025 | Q2 2025 | Q3 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | :--- | | Total Interest Income | $49,222 | $48,629 | $47,379 | $145,052 | $136,963 | | Total Interest Expense | $15,116 | $15,278 | $16,997 | $45,846 | $48,287 | | Net Interest Income | $34,106 | $33,351 | $30,382 | $99,206 | $88,676 | | (Reversal of) Provision for Credit Losses | $(229) | $489 | $140 | $654 | $1,542 | | Total Noninterest Income | $3,738 | $3,716 | $3,692 | $11,463 | $10,996 | | Total Noninterest Expense | $22,531 | $22,407 | $22,258 | $66,517 | $64,934 | | Income Tax Expense | $3,185 | $2,841 | $2,239 | $8,847 | $6,442 | | Net Income | $12,357 | $11,330 | $9,437 | $34,651 | $26,754 | | Diluted Earnings Per Share | $1.59 | $1.45 | $1.18 | $4.41 | $3.34 | 4.3 Summary Financial Information This section provides a summary of key financial data, including earnings, average balance sheet figures, per-share data, and selected ratios, with Q3 2025 showing a Return on Assets (ROA) of 1.41%, Return on Equity (ROE) of 11.78%, and Net Interest Margin (NIM) of 4.10% Earnings Data (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Net Interest Income | $34,106 | $33,351 | $30,382 | | Net Income | $12,357 | $11,330 | $9,437 | Average Balance Sheet Data (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Total Assets | $3,467,070 | $3,474,762 | $3,405,083 | | Total Loans | $2,743,695 | $2,764,065 | $2,668,672 | | Total Deposits | $2,918,938 | $2,863,683 | $2,730,568 | | Total Shareholders' Equity | $416,239 | $404,367 | $384,518 | Per Share Data | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Diluted Earnings Per Share | $1.59 | $1.45 | $1.18 | | Period-End Book Value Per Share | $54.05 | $52.36 | $48.75 | | Period-End Tangible Book Value Per Share | $43.29 | $41.54 | $38.17 | Selected Ratios | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Return on Average Assets (ROAA) | 1.41% | 1.31% | 1.10% | | Return on Average Equity (ROAE) | 11.78% | 11.24% | 9.76% | | Net Interest Margin (NIM) | 4.10% | 4.04% | 3.71% | | Efficiency Ratio | 59.54% | 60.45% | 65.32% | | Tier 1 Leverage Capital Ratio | 11.90% | 11.47% | 11.32% | | Total Risk-Based Capital Ratio | 15.24% | 14.66% | 14.74% | | Tangible Common Equity Ratio (Non-GAAP) | 9.94% | 9.52% | 9.18% | | Return on Average Tangible Common Equity (Non-GAAP) | 15.02% | 14.48% | 12.90% | 4.4 Consolidated Net Interest Margin Tables This section provides a detailed consolidated net interest margin analysis, including average balances, interest income/expense, average yields/rates for interest-earning assets and interest-bearing liabilities, and trends in net interest spread and net interest margin Consolidated Net Interest Margin (Three Months) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Interest-Earning Assets: | | | | | Average Balance of Loans (in thousands) | $2,743,695 | $2,764,065 | $2,668,672 | | Loan Interest Income (in thousands) | $45,607 | $45,287 | $43,711 | | Average Loan Yield | 6.53% | 6.50% | 6.43% | | Average Balance of Investment Securities (in thousands) | $411,889 | $426,601 | $454,024 | | Investment Securities Interest Income (in thousands) | $2,504 | $2,596 | $2,677 | | Average Investment Securities Yield | 2.45% | 2.45% | 2.38% | | Interest-Bearing Liabilities: | | | | | Average Balance of Interest-Bearing Deposits (in thousands) | $2,128,540 | $2,087,781 | $1,989,182 | | Interest-Bearing Deposit Interest Expense (in thousands) | $13,805 | $13,142 | $13,908 | | Average Interest-Bearing Deposit Rate | 2.57% | 2.52% | 2.78% | | Average Balance of FHLB Advances (in thousands) | $39,445 | $114,023 | $56,743 | | FHLB Advances Interest Expense (in thousands) | $412 | $1,239 | $572 | | Average FHLB Advances Rate | 4.12% | 4.30% | 3.99% | | Net Interest Spread (TE) | 3.26% | 3.21% | 2.80% | | Net Interest Margin (TE) | 4.10% | 4.04% | 3.71% | Consolidated Net Interest Margin (Nine Months) | Metric | Sep 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | | Interest-Earning Assets: | | | | Average Balance of Loans (in thousands) | $2,750,985 | $2,641,414 | | Loan Interest Income (in thousands) | $134,926 | $126,277 | | Average Loan Yield | 6.49% | 6.30% | | Average Balance of Investment Securities (in thousands) | $425,915 | $463,333 | | Investment Securities Interest Income (in thousands) | $7,764 | $8,205 | | Average Investment Securities Yield | 2.45% | 2.38% | | Interest-Bearing Liabilities: | | | | Average Balance of Interest-Bearing Deposits (in thousands) | $2,085,330 | $1,964,095 | | Interest-Bearing Deposit Interest Expense (in thousands) | $39,569 | $39,174 | | Average Interest-Bearing Deposit Rate | 2.54% | 2.66% | | Average Balance of FHLB Advances (in thousands) | $110,858 | $58,309 | | FHLB Advances Interest Expense (in thousands) | $3,583 | $1,765 | | FHLB Advances Average Rate | 4.27% | 4.01% | | Net Interest Spread (TE) | 3.19% | 2.80% | | Net Interest Margin (TE) | 4.02% | 3.67% | 4.5 Summary Credit Quality Information Tables This section provides detailed credit quality information, including nonaccrual loans, nonperforming assets, allowance for credit losses, net charge-offs, and various credit quality ratios, with total nonperforming assets at $30.906 million and allowance for credit losses at $32.827 million as of September 30, 2025 Credit Quality (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Total Nonaccrual Loans | $29,467 | $23,340 | $18,055 | | Total Nonperforming Loans | $29,522 | $23,352 | $18,089 | | Foreclosed Assets and ORE | $1,384 | $2,077 | $267 | | Total Nonperforming Assets | $30,906 | $25,429 | $18,356 | | Nonperforming Assets as % of Total Assets | 0.88% | 0.73% | 0.53% | | Nonperforming Loans as % of Total Loans | 1.09% | 0.84% | 0.68% | Allowance for Credit Losses (in thousands) | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Beginning Balance | $33,432 | $33,278 | $32,212 | | (Reversal of) Provision for Credit Losses | $(229) | $489 | $140 | | Net Charge-offs | $(376) | $(335) | $(74) | | Ending Balance | $32,827 | $33,432 | $32,278 | | Allowance for Credit Losses on Unfunded Commitments | $1,730 | $1,730 | $2,460 | | Total Allowance for Credit Losses | $34,557 | $35,162 | $34,738 | Credit Quality Ratios | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :--- | :--- | :--- | :--- | | Allowance for Credit Losses to Nonperforming Assets | 106.22% | 131.47% | 175.84% | | Allowance for Credit Losses to Nonperforming Loans | 111.20% | 143.17% | 178.44% | | Allowance for Credit Losses to Total Loans | 1.21% | 1.21% | 1.21% | | Total Allowance for Credit Losses to Total Loans | 1.28% | 1.27% | 1.30% | | Year-to-Date Net Charge-offs to Average Loans | (0.04)% | (0.03)% | (0.04)% | - Nonaccrual loans are those 90 days or more past due, unless they are well-secured and in the process of collection[50] - The allowance for credit losses on unfunded commitments is recorded in accrued interest payable and other liabilities on the condensed statements of financial condition[51]