HOME BANCORP ANNOUNCES 2025 FOURTH QUARTER RESULTS AND DECLARES A QUARTERLY DIVIDEND

LAFAYETTE, La., Jan. 26, 2026 /PRNewswire/ -- 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 fourth quarter of 2025. For the quarter, the Company reported net income of $11.4 million, or $1.46 per diluted common share ("diluted EPS"), down $946,000, or 8%, from $12.4 million, or $1.59 diluted EPS, for the third quarter of 2025.

"We are pleased with our overall fourth quarter and full year results," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "During the fourth quarter, loan production increased and core deposits grew. Nonperforming assets increased for the quarter, but we do not anticipate any material losses. The net interest margin decreased to 4.06% for the quarter primarily due to lower loan yield and our ability to manage lower funding cost. The majority of our Certificates of Deposit will reprice within 120 days, which should continue to reduce deposit costs and have a positive impact on NIM. We remain well positioned to assist our customers with opportunities in the new year."

Fourth Quarter 2025 Highlights

• Loans totaled $2.7 billion at December 31, 2025, up $38.1 million, or 1%, (an increase of 6% on an annualized basis), from September 30, 2025.
  
  
  
  
• Deposits totaled $3.0 billion at December 31, 2025, down  $2.7 million, or less than 1% for the quarter and on an  annualized basis, from September 30, 2025. Core deposits increased $24.5 million, or 1% during the fourth quarter of 2025 to $2.2 billion (an increase of 5% on an annualized basis).
  
  
  
  
• Net interest income in the fourth quarter of 2025 totaled $34.0 million, down $58,000, or less than 1%, from the prior quarter.
  
  
  
  
• The net interest margin ("NIM") decreased 4 basis points from 4.10% for the third quarter of 2025 to 4.06% in the fourth quarter of 2025 primarily due to lower yield on interest-earning assets, partially offset by lower funding cost.
  
  
  
  
• Nonperforming assets totaled $36.1 million, or 1.03% of total assets, at December 31, 2025, up $5.2 million, or 17%, from September 30, 2025, primarily due to two loan relationships which were moved to nonaccrual status, partially offset by paydowns in the fourth quarter of 2025.
  
  
  
  
• The Company recorded a $480,000 provision to the allowance for loan losses in the fourth quarter of 2025, compared to a $229,000 reversal to provision in the third quarter of 2025, primarily due to loan growth.
  
  
  
  
• Net loan charge-offs were $165,000 for the fourth quarter of 2025, compared to net loan charge-offs of $376,000 during the third quarter of 2025. Year-to-date net loan charge-offs to average loans was 0.03% for the year ended December 31, 2025.

Loans

Loans totaled $2.7 billion at December 31, 2025, up $38.1 million, or 1%, from September 30, 2025. The following table summarizes the changes in the Company's loan portfolio from September 30, 2025 to December 31, 2025.

The average loan yield was 6.44% for the fourth quarter of 2025, down 9 basis points from the third quarter of 2025. The average loan yield began to decline in mid-September 2025 following the Federal Reserve rate cuts. Commercial and industrial and commercial real estate loans were the primary drivers for the loan growth during the fourth quarter of 2025. We experienced growth across most of our markets, primarily within our New Orleans and Acadiana markets.

Credit Quality and Allowance for Loan Losses

Nonperforming assets ("NPAs") totaled $36.1 million, or 1.03% of total assets at December 31, 2025, up $5.2 million, or 17%, from $30.9 million, or 0.88% of total assets, at September 30, 2025. The increase in NPAs during the fourth quarter of 2025 was primarily due to two loan relationships totaling $5.7 million, which were put on nonaccrual during the quarter, partially offset by payoffs and paydowns. The Company recorded net loan charge-offs of $165,000 during the fourth quarter of 2025, compared to net loan charge-offs of $376,000 during the third quarter of 2025.

The Company made a $480,000 provision to the allowance for loan losses in the fourth quarter of 2025 primarily due to loan growth. For the year ended December 31, 2025, provisions to the allowance for loan losses totaled $1.1 million. At December 31, 2025, the allowance for loan losses totaled $33.1 million, or 1.21% of total loans, compared to $32.8 million, or 1.21% of total loans, at September 30, 2025. Changes in expected losses are based on various factors, including the changing economic activity, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.

The following tables present the Company's loan portfolio by credit quality classification as of December 31, 2025 and September 30, 2025.

Investment Securities

The Company's investment securities portfolio totaled $392.5 million at December 31, 2025, an increase of $8.1 million, or 2%, from September 30, 2025. At December 31, 2025, the Company had a net unrealized loss position on its investment securities of $23.4 million, compared to a net unrealized loss of $26.5 million at September 30, 2025. The Company's investment securities portfolio had an effective duration of 3.3 years and 3.5 years at December 31, 2025 and September 30, 2025, respectively. The Company made securities purchases of $14.4 million during the fourth quarter of 2025, compared to $4.3 million during third quarter of 2025. The Company had no securities sales during the year ended December 31, 2025.

The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2025.

Approximately 36% of the investment securities portfolio was pledged as of December 31, 2025 to secure public deposits. As of December 31, 2025 and September 30, 2025, the Company had $140.1 million and $140.2 million, respectively, of securities pledged to secure public deposits.

Deposits

Total deposits were $3.0 billion at December 31, 2025, down $2.7 million, or less than 1%, from September 30, 2025. Non-maturity deposits increased $24.5 million, or 1%, during the fourth quarter of 2025 to $2.2 billion. The following table summarizes the changes in the Company's deposits from September 30, 2025 to December 31, 2025.

The average rate on interest-bearing deposits decreased 6 basis points from 2.57% for the third quarter of 2025 to 2.51% for the fourth quarter of 2025. At December 31, 2025, certificates of deposit maturing within the next 12 months totaled $781.2 million, or 97% of total certificates of deposit.

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.

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $885.4 million at December 31, 2025 and $894.8 million at September 30, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") decreased 4 basis points from 4.10% for the third quarter of 2025 to 4.06% for the fourth quarter of 2025 primarily due to lower yield on interest-earning assets, which was offset with lower funding cost for average interest-bearing liabilities.

Average other interest-earning assets were $163.1 million for the fourth quarter of 2025, up $63.4 million, or 64%, from the third quarter of 2025 primarily due to an increase in the average balance of cash and cash equivalents.

The average rate paid on total interest-bearing deposits was 2.51% for the fourth quarter of 2025, down 6 basis points from the third quarter of 2025, due to the lower funding cost. The average rate paid on certificate of deposits was 3.83% for the fourth quarter of 2025, down 2 basis points from the third quarter of 2025.

Average FHLB advances were $3.0 million for the fourth quarter of 2025, a decrease of $36.4 million, or 92%, from the third quarter of 2025 due to paydowns of FHLB advances.

Loan accretion income from acquired loans totaled $242,000 for the fourth quarter of 2025, down $105,000, or 30%, compared to the third quarter of 2025.

Noninterest Income 

Noninterest income for the fourth quarter of 2025 totaled $4.0 million, up $260,000, or 7%, from the third quarter of 2025. The increase was related primarily to increases in other income (up $174,000), gains on sale of loans (up $81,000) and service fees and charges (up $30,000), which were partially offset by decreases in bank card fees (down $22,000) for the fourth quarter of 2025 compared to the third quarter of 2025.

Noninterest Expense 

Noninterest expense for the fourth quarter of 2025 totaled $23.0 million, up $515,000, or 2%, compared to the third quarter of 2025. The increase was primarily due to increases in other noninterest expense (up $637,000) and compensation and benefits (up $443,000), which were partially offset by decreases in foreclosed assets, net (down $323,000), occupancy expense (down $138,000) and a reversal to the allowance for credit losses on unfunded commitments (down $105,000) for the fourth quarter of 2025 compared to the third quarter of 2025.

Capital and Liquidity

At December 31, 2025, shareholders' equity totaled $435.1 million, up $12.1 million, or 3%, compared to $423.0 million at September 30, 2025. The increase was primarily due to the Company's earnings of $11.4 million and a decrease in the accumulated other comprehensive loss on available for sale investment securities during the fourth quarter of 2025, which were partially offset by shareholders' dividends. The market value of the Company's available for sale securities at December 31, 2025 increased $3.1 million, or 12%, during the fourth quarter of 2025. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.84% and 15.29%, respectively, at December 31, 2025, compared to 11.80% and 15.24%, respectively, at September 30, 2025.

Dividend and Share Repurchases

The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.31 per share (unchanged from the previous quarterly cash dividend) payable on February 20, 2026, to shareholders of record as of February 9, 2026.

The Company repurchased 750 shares of its common stock during the fourth quarter of 2025 at an average price per share of $59.97. At December 31, 2025, an additional 390,222 shares remain eligible for purchase under the 2025 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $55.56 and $44.84, respectively, at December 31, 2025.

Conference Call 

Executive management will host a conference call to discuss fourth quarter 2025 results on Tuesday, January 27, 2026 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (US Toll Free). The investor presentation can be accessed the day of the presentation on the  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.

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. 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 of non-GAAP information included herein to GAAP is presented below.

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, 2024, describes some of these factors, including risk elements in the loan portfolio, risks related to our deposit actives, the level of the allowance for credit losses, 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.