Bordelon said loans grew $38 million in the fourth quarter, a 6% annualized rate, as strong December originations outpaced “still elevated payoffs and paydowns.” He added that the loan pipeline is building and paydowns appear to be slowing, leading management to expect mid-single-digit loan growth in 2026.CFO David Kirkley said fourth quarter net income declined 8% from the prior quarter but increased 21% year over year. He attributed the linked-quarter decline primarily to higher provision expense tied to ...

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Home Bancorp (NasdaqGS:HBCP) Q4 2025 Earnings call January 27, 2026 11:30 AM ET Company ParticipantsDavid Kirkley - Senior VP and CFOFeddie Strickland - DirectorJoe Yanchunis - Senior Equity Research AssociateJohn Bordelon - Chairman, President and CEOStephen Scouten - Managing DirectorOperatorGood morning, ladies and gentlemen, and welcome to Home Bancorp's fourth quarter 2025 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference sp ...

Financial Data and Key Metrics Changes - The company reported fourth quarter net income of $11.4 million, or $1.46 per share, which is a record for the company and 29% higher than 2024 earnings per share [2][3] - The fourth quarter net interest margin (NIM) was 4.06%, up from 3.82% in the fourth quarter of 2024, and return on assets (ROA) was 1.29%, compared to 1.12% a year ago [3][6] - Loans grew by $38 million in the fourth quarter, or 6% annualized, while deposits increased by 7%, or $192 million [3][9] Business Line Data and Key Metrics Changes - The Texas franchise has seen loans grow at a 15% annual rate since entering the market in 2022, now representing 20% of the loan portfolio [4][5] - Non-performing loans increased in 2025, but charge-offs remain low, averaging about 6 basis points over the last six years [5][8] Market Data and Key Metrics Changes - Average non-interest bearing deposits increased by $3 million in the fourth quarter and $40 million in 2025, representing 27% of total deposits [9] - The cost of interest-bearing deposits decreased by 6 basis points in the fourth quarter and 15 basis points since the fourth quarter of 2024, with an overall cost of deposits at 1.84% [10] Company Strategy and Development Direction - The company intends to focus on deposit growth to build franchise value and increase profitability when loan growth returns to historical rates [4] - The company is optimistic about M&A opportunities in 2026, looking for potential acquisitions of banks around half its size [34][36] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's future, noting that they do not foresee an economic-driven downturn despite some non-performing assets [17][25] - The company expects loan growth in 2026 to be in the mid-single digits, contingent on interest rate movements [3][46] Other Important Information - Noninterest income was $4 million, slightly above expectations, and is expected to increase to between $3.8 million and $4 million in the coming quarters [10] - The company has increased its quarterly dividends per share by 55% to $0.31 and repurchased 17% of its shares since 2019 [11] Q&A Session Summary Question: When do you think we might see a shift in the trajectory of Class 5 and NPAs? - Management indicated that the process can take time, especially in Louisiana and Mississippi, but expects some properties in Texas to be resolved by February [16][20] Question: Is the loan pipeline looking different from what's on the books today? - Management noted that while there were payoffs in 2025, they hope to see less of that in 2026, indicating potential for loan growth [21][23] Question: How is the SBA business expected to perform in 2026? - Management anticipates that the SBA business will pick up with lower interest rates, although it may not be significant immediately [32] Question: What are the capital deployment priorities regarding M&A? - Management is optimistic about M&A opportunities in 2026, particularly as their stock price improves [34][36] Question: How should we think about the size of the bond portfolio in 2026? - Management expects the investment portfolio to increase by about $15 million to $20 million, maintaining its percentage of assets [37] Question: What is the outlook for NIM and rate sensitivity? - Management projects NIM to increase to 4.1-4.15% throughout the year, with a stable outlook despite potential rate cuts [49][50]

Financial Data and Key Metrics Changes - In Q4 2025, the company reported a net income of $11.4 million, or $1.46 per share, which is a record for the company and represents a 29% increase from 2024 earnings per share [3][4] - The net interest margin (NIM) for Q4 was 4.06%, up from 3.82% in Q4 2024, while the return on assets (ROA) increased to 1.29% from 1.12% year-over-year [4][7] - Loans grew by $38 million in Q4, or 6% annualized, while deposits increased by 7%, or $192 million, during the same period [4][11] Business Line Data and Key Metrics Changes - The Texas franchise has shown strong performance, with loans growing at a 15% annual rate since entering the market in 2022, now representing 20% of the loan portfolio [5][6] - Non-performing loans increased in 2025, but charge-offs remained low, averaging about 6 basis points over the last six years [6][10] Market Data and Key Metrics Changes - Average non-interest bearing deposits increased by $3 million in Q4 and $40 million in 2025, representing 27% of total deposits [11] - The cost of interest-bearing deposits decreased by 6 basis points in Q4 and 15 basis points since Q4 2024, with an overall cost of deposits at 1.84% [12] Company Strategy and Development Direction - The company plans to focus on deposit growth to build franchise value and increase profitability when loan growth returns to historical rates [5][6] - The company is optimistic about M&A opportunities in 2026, with a focus on smaller banks, potentially half their size or less [37][39] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to navigate economic challenges and maintain high standards in credit management [6] - There are no negative comments from customers across different markets, indicating a generally positive outlook despite national economic concerns [28] Other Important Information - Noninterest income was $4 million, slightly above expectations, and is expected to increase in the coming quarters [12] - The company has increased its quarterly dividends per share by 55% to $0.31 and repurchased 17% of its shares since 2019 [13] Q&A Session Summary Question: Concerns about Class 5 and NPAs trajectory - Management acknowledged the slow resolution of certain credits but expects to resolve some properties by February, indicating potential for NPAs to decrease [19][20] Question: Loan pipeline composition - Management noted that while there were payoffs in 2025, they anticipate less of that in 2026, which could support loan growth [25] Question: SBA business growth potential - Management indicated that the SBA business could see growth as interest rates decrease, although it may require further investment [35] Question: M&A as a capital deployment priority - Management confirmed that M&A is a priority, with a focus on smaller banks as opportunities arise [36][37] Question: Loan growth capacity and expectations - Management expects mid-single digit loan growth for 2026, potentially increasing if interest rates decrease [49] Question: NIM trajectory and rate sensitivity - Management projected NIM could increase to 4.1-4.15% throughout the year, despite some competitive pressures on deposit rates [52][54]

Q4 2025 Earnings Conference Call Forward-Looking Statements 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 b ...

Core Insights - Home Bancorp (HBCP) reported quarterly earnings of $1.46 per share, exceeding the Zacks Consensus Estimate of $1.39 per share, and up from $1.21 per share a year ago, representing an earnings surprise of +5.29% [1] - The company achieved revenues of $38.05 million for the quarter ended December 2025, surpassing the Zacks Consensus Estimate by 2.27% and increasing from $35.22 million year-over-year [2] - Home Bancorp has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Performance - The earnings surprise for the previous quarter was +16.06%, with actual earnings of $1.59 per share compared to an expected $1.37 per share [1] - The current consensus EPS estimate for the upcoming quarter is $1.33, with projected revenues of $36.9 million, and for the current fiscal year, the EPS estimate is $5.64 on revenues of $152.45 million [7] Stock Performance - Home Bancorp shares have increased by approximately 4.4% since the beginning of the year, outperforming the S&P 500, which gained 1% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating expected performance in line with the market in the near future [6] Industry Outlook - The Banks - Southeast industry, to which Home Bancorp belongs, is currently ranked in the top 22% of over 250 Zacks industries, suggesting a favorable outlook [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - For the fourth quarter of 2025, Home Bancorp reported net income of $11.4 million, or $1.46 per diluted share, a decrease of 8% from the previous quarter's net income of $12.4 million, or $1.59 per diluted share [2]. - Reported net income for Q4 2025 was $11.4 million, compared to $12.4 million in Q3 2025 [31]. - Net income for the full year 2025 was $46,062,000, a significant increase from $36,427,000 in 2024, representing a growth of 26.5% [39]. - Earnings per share (EPS) for Q4 2025 was $1.48, down from $1.60 in Q3 2025 but up from $1.22 in Q4 2024, showing a year-over-year increase of 21.3% [39]. Loan and Deposit Growth - Total loans reached $2.7 billion at December 31, 2025, reflecting an increase of $38.1 million, or 1%, from the previous quarter, with an annualized growth rate of 6% [4]. - Core deposits increased by $24.5 million, or 1%, during the fourth quarter, totaling $2.2 billion, which represents a 5% annualized increase [4]. - Total deposits were $3.0 billion at December 31, 2025, down $2.7 million, or less than 1%, from the previous quarter [15]. - Total deposits increased to $2,977,273,000 as of December 31, 2025, compared to $2,918,938,000 at the end of Q3 2025 and $2,789,712,000 at the end of 2024 [39]. Asset Quality - Nonperforming assets rose to $36.1 million, or 1.03% of total assets, an increase of 17% from $30.9 million, or 0.88% of total assets, in the previous quarter [8]. - The allowance for loan losses at the end of the period was $33,142 thousand, reflecting a net charge-off of $165 thousand for the three months ended December 31, 2025 [48]. - Nonaccrual loans totaled $34,111 thousand as of December 31, 2025, up from $13,582 thousand a year earlier [48]. - The allowance for loan losses to nonperforming loans ratio decreased to 96.97% from 111.20% in the previous quarter [50]. Interest Income and Margin - Total interest income for Q4 2025 was $48,720,000, a slight decrease from $49,222,000 in Q3 2025, but an increase from $47,804,000 in Q4 2024 [37]. - Net interest income for Q4 2025 reached $34,048,000, compared to $34,106,000 in Q3 2025 and $31,586,000 in Q4 2024, reflecting a year-over-year increase of 7.8% [39]. - The net interest margin (NIM) decreased to 4.06% for the fourth quarter, down 4 basis points from 4.10% in the third quarter, primarily due to lower loan yields [4][19]. - The net interest margin (TE) for the twelve months ended December 31, 2025, was 4.03%, compared to 3.71% for the same period in 2024 [45]. Noninterest Income and Expense - Noninterest income for Q4 2025 totaled $4.0 million, up $260,000, or 7%, from Q3 2025, driven by increases in other income, gains on sale of loans, and service fees [23]. - Noninterest expense for Q4 2025 totaled $23.0 million, up $515,000, or 2%, compared to Q3 2025, primarily due to increases in other noninterest expense and compensation and benefits [24]. Shareholder Returns - The Company declared a quarterly cash dividend of $0.31 per share, unchanged from the previous quarter, payable on February 20, 2026 [26]. - The Company repurchased 750 shares of common stock at an average price of $59.97 during Q4 2025, with an additional 390,222 shares remaining eligible for purchase [27]. Equity and Valuation - Shareholders' equity at December 31, 2025, totaled $435.1 million, up $12.1 million, or 3%, compared to $423.0 million at September 30, 2025 [25]. - The book value per share increased to $55.56 at December 31, 2025, compared to $54.05 at September 30, 2025 [31]. - The common equity ratio at the end of Q4 2025 was 12.46%, up from 12.11% in Q3 2025 and 11.50% in Q4 2024 [39].

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, d ...

We've always maintained loan structure discipline and have prioritized risk-adjusted returns over growth, and we don't intend to abandon our principles now. On a high note, deposits increased 9% annualized in the third quarter with good growth and relatively low-cost money market accounts. Thanks to a concerted effort and a focus on building franchise value, we've increased deposits by 17% in the last 9 quarters versus loans, which also grew a respectable 8%. Most of this increase has been in core deposits ...