[Cover Page and General Information](index=1&type=section&id=Cover%20Page%20and%20General%20Information) The company is designated as an accelerated filer with **7.82 million** common shares outstanding as of July 31, 2025 - The company is designated as an accelerated filer[3](index=3&type=chunk) - As of July 31, 2025, the company had **7,824,751 common shares** outstanding[3](index=3&type=chunk) Registered Securities Information | Title of each class | Trading symbol(s) | Name of each exchange on which registered | | :--- | :--- | :--- | | Common Stock | HBCP | NASDAQ Stock Market | [Table of Contents](index=2&type=section&id=Table%20of%20Contents) The report is divided into two parts: financial information and other information, covering consolidated financial statements, management's discussion, market risk, controls, legal proceedings, risk factors, and exhibits - The report is divided into two main parts: Part I for financial information and Part II for other information[4](index=4&type=chunk)[5](index=5&type=chunk) - Financial information includes consolidated financial statements, management's discussion and analysis, market risk disclosures, and controls and procedures[5](index=5&type=chunk) - Other information covers legal proceedings, risk factors, equity security sales, defaults, mine safety disclosures, and exhibits[5](index=5&type=chunk) [Glossary of Defined Terms](index=3&type=section&id=Glossary%20of%20Defined%20Terms) This section explains abbreviations and defined terms used in the report, such as ACL, ALL, and AOCI, and clarifies the meaning of 'we,' 'our,' or 'us' - The glossary explains abbreviations and defined terms used in the report, such as ACL (Allowance for Credit Losses), ALL (Allowance for Loan Losses), and AOCI (Accumulated Other Comprehensive Income)[7](index=7&type=chunk)[8](index=8&type=chunk) - 'We,' 'our,' or 'us' refer to Home Bancorp, Inc. and its consolidated subsidiaries[7](index=7&type=chunk) [PART I - FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) [Item 1. Financial Statements (unaudited)](index=4&type=section&id=Item%201.%20Financial%20Statements%20(unaudited)) This section presents the company's unaudited consolidated financial statements as of June 30, 2025, including balance sheets, income statements, comprehensive income, equity changes, cash flows, and related notes on accounting policies, investments, and fair value measurements [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of June 30, 2025, total assets increased to **$3.49 billion**, deposits grew **4.6%** to **$2.91 billion**, and shareholders' equity rose **3.2%** to **$409 million** compared to December 31, 2024 Consolidated Statements of Financial Condition Key Data | Metric | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | Change (%) | | :--- | :--- | :--- | :--- | | Total Assets | 3,491,455 | 3,443,668 | 1.4% | | Cash and Cash Equivalents | 112,595 | 98,548 | 14.3% | | Net Loans | 2,731,106 | 2,685,269 | 1.7% | | Total Deposits | 2,908,234 | 2,780,696 | 4.6% | | Short-term FHLB Advances | 75,000 | 137,220 | -45.3% | | Long-term FHLB Advances | 13,196 | 38,326 | -65.6% | | Total Shareholders' Equity | 408,818 | 396,088 | 3.2% | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the three months ended June 30, 2025, was **$11.33 million**, up **39.6%**, with diluted EPS of **$1.45**, driven by increased net interest income and reduced provision for loan losses Consolidated Statements of Income Key Data (Three Months) | Metric | June 30, 2025 (thousand dollars) | June 30, 2024 (thousand dollars) | Change (%) | | :--- | :--- | :--- | :--- | | Total Interest Income | 48,629 | 45,458 | 7.0% | | Total Interest Expense | 15,278 | 16,065 | -4.9% | | Net Interest Income | 33,351 | 29,393 | 13.5% | | Provision for Loan Losses | 489 | 1,261 | -61.2% | | Noninterest Income | 3,716 | 3,755 | -1.0% | | Noninterest Expense | 22,407 | 21,808 | 2.7% | | Income Tax Expense | 2,841 | 1,961 | 44.9% | | Net Income | 11,330 | 8,118 | 39.6% | | Diluted Earnings Per Share | 1.45 | 1.02 | 42.2% | | Cash Dividends Per Share | 0.27 | 0.25 | 8.0% | Consolidated Statements of Income Key Data (Six Months) | Metric | June 30, 2025 (thousand dollars) | June 30, 2024 (thousand dollars) | Change (%) | | :--- | :--- | :--- | :--- | | Total Interest Income | 95,830 | 89,584 | 7.0% | | Total Interest Expense | 30,730 | 31,290 | -1.8% | | Net Interest Income | 65,100 | 58,294 | 11.7% | | Provision for Loan Losses | 883 | 1,402 | -37.0% | | Noninterest Income | 7,725 | 7,304 | 5.8% | | Noninterest Expense | 43,986 | 42,676 | 3.1% | | Income Tax Expense | 5,662 | 4,203 | 34.7% | | Net Income | 22,294 | 17,317 | 28.7% | | Diluted Earnings Per Share | 2.82 | 2.16 | 30.6% | | Cash Dividends Per Share | 0.54 | 0.50 | 8.0% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Comprehensive income for the three months ended June 30, 2025, significantly increased to **$13.92 million**, primarily due to a substantial rise in unrealized gains on available-for-sale investment securities Consolidated Statements of Comprehensive Income Key Data (Three Months) | Metric | June 30, 2025 (thousand dollars) | June 30, 2024 (thousand dollars) | Change (thousand dollars) | | :--- | :--- | :--- | :--- | | Net Income | 11,330 | 8,118 | 3,212 | | Unrealized gain on available-for-sale investment securities | 3,810 | 36 | 3,774 | | Unrealized (loss) gain on cash flow hedges | (529) | (284) | (245) | | Tax effect | (689) | 52 | (741) | | Other comprehensive income (loss), net of tax | 2,592 | (196) | 2,788 | | Comprehensive Income | 13,922 | 7,922 | 6,000 | Consolidated Statements of Comprehensive Income Key Data (Six Months) | Metric | June 30, 2025 (thousand dollars) | June 30, 2024 (thousand dollars) | Change (thousand dollars) | | :--- | :--- | :--- | :--- | | Net Income | 22,294 | 17,317 | 4,977 | | Unrealized gain on available-for-sale investment securities | 10,822 | (3,125) | 13,947 | | Unrealized (loss) gain on cash flow hedges | (1,343) | 194 | (1,537) | | Tax effect | (1,990) | 616 | (2,606) | | Other comprehensive income (loss), net of tax | 7,489 | (2,315) | 9,804 | | Comprehensive Income | 29,783 | 15,002 | 14,781 | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) Total shareholders' equity increased **3.2%** to **$408.8 million** as of June 30, 2025, driven by net income and reduced accumulated other comprehensive losses, partially offset by dividends and share repurchases - Total shareholders' equity was **$408.8 million** as of June 30, 2025, an increase of **$12.7 million** from **$396.1 million** as of December 31, 2024[18](index=18&type=chunk)[20](index=20&type=chunk) - The increase in shareholders' equity was primarily attributable to **$22.3 million** in net income and **$7.5 million** in other comprehensive income, partially offset by **$14.3 million** in common stock repurchases and **$4.3 million** in cash dividends[20](index=20&type=chunk) Summary of Changes in Shareholders' Equity (Six Months) | Item | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :--- | :--- | :--- | | Common Stock | 78 | 81 | | Additional Paid-in Capital | 166,576 | 168,138 | | Retained Earnings | 265,817 | 259,190 | | Accumulated Other Comprehensive Loss | (22,493) | (29,982) | | Total Shareholders' Equity | 408,818 | 396,088 | [Consolidated Statements of Cash Flows](index=9&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2025, net cash provided by operating activities was **$21.3 million**, while investing activities used **$28.9 million** and financing activities provided **$21.6 million**, resulting in a **$14.0 million** net increase in cash Consolidated Statements of Cash Flows Key Data (Six Months) | Cash Flow Type | June 30, 2025 (thousand dollars) | June 30, 2024 (thousand dollars) | | :--- | :--- | :--- | | Net cash from operating activities | 21,325 | 25,293 | | Net cash from investing activities | (28,864) | (57,973) | | Net cash from financing activities | 21,586 | 70,311 | | Net change in cash and cash equivalents | 14,047 | 37,631 | | Cash and cash equivalents at end of period | 112,595 | 113,462 | - In the first half of 2025, cash outflows from investing activities decreased, primarily due to redemptions of available-for-sale securities and a reduction in net loan originations[23](index=23&type=chunk) - In the first half of 2025, cash inflows from financing activities decreased, mainly due to net repayments of FHLB advances and increased common stock repurchases[23](index=23&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited consolidated financial statements, covering basis of presentation, recent accounting pronouncements, investment securities, EPS, credit quality, derivatives, long-term debt, and fair value measurements [1. Basis of Presentation](index=10&type=section&id=1.%20Basis%20of%20Presentation) This note outlines the preparation of unaudited consolidated financial statements in accordance with Form 10-Q and Regulation S-X, confirming all necessary adjustments are included and no significant changes to accounting policies occurred - The financial statements are prepared in accordance with Form 10-Q and Regulation S-X, including all normal recurring adjustments deemed necessary by management[25](index=25&type=chunk) - Operating results for the interim periods are not necessarily indicative of results for the entire fiscal year[25](index=25&type=chunk) - The company has not made any significant changes to the critical accounting policies disclosed in its annual report as of December 31, 2024[27](index=27&type=chunk) [2. Recent Accounting Pronouncements](index=10&type=section&id=2.%20Recent%20Accounting%20Pronouncements) This section details the adoption of ASU 2023-07 and ASU 2023-09 in 2025, which had no material impact, and notes ASU 2024-03 may affect future disclosures, while ASU 2023-06 and ASU 2025-03 are not expected to have a significant impact - The adoption of ASU 2023-07 (Improvements to Reportable Segment Disclosures) and ASU 2023-09 (Improvements to Income Tax Disclosures) had no material impact on the consolidated financial statements[29](index=29&type=chunk)[30](index=30&type=chunk) - ASU 2024-03 (Statement of Comprehensive Income—Disaggregation of Expenses Disclosure) requires disaggregation of certain expenses in the notes to financial statements, and the company is evaluating its impact on disclosures[32](index=32&type=chunk) - ASU 2023-06 and ASU 2025-03 are not expected to have a material impact on the consolidated financial statements[31](index=31&type=chunk)[33](index=33&type=chunk) [3. Investment Securities](index=11&type=section&id=3.%20Investment%20Securities) As of June 30, 2025, available-for-sale investment securities had a fair value of **$393.5 million** with **$30.4 million** in unrealized losses, primarily long-term, which management does not consider credit-related Investment Securities Portfolio (June 30, 2025) | Security Type | Amortized Cost (thousand dollars) | Unrealized Gains (thousand dollars) | Unrealized Losses (thousand dollars) | Fair Value (thousand dollars) | | :--- | :--- | :--- | :--- | :--- | | **Available-for-Sale:** | | | | | | U.S. agency mortgage-backed securities | 280,484 | 248 | 21,807 | 258,925 | | Collateralized mortgage obligations | 68,080 | 1 | 1,466 | 66,615 | | Municipal bonds | 53,240 | — | 6,298 | 46,942 | | U.S. government agencies | 16,863 | — | 525 | 16,338 | | Corporate bonds | 4,985 | — | 343 | 4,642 | | **Total Available-for-Sale** | **423,652** | **249** | **30,439** | **393,462** | | **Held-to-Maturity:** | | | | | | Municipal bonds | 1,065 | 1 | — | 1,066 | | **Total Held-to-Maturity** | **1,065** | **1** | **—** | **1,066** | - As of June 30, 2025, **235 debt securities** had unrealized losses, representing **7.5%** of their amortized cost, with **224** of these in a loss position for over 12 months; management does not consider these to be credit losses and has not recorded an allowance for credit losses[40](index=40&type=chunk) - As of June 30, 2025, the effective duration of the company's investment securities portfolio was **3.6 years**, down from **3.9 years** as of December 31, 2024[36](index=36&type=chunk) [4. Earnings Per Share](index=14&type=section&id=4.%20Earnings%20Per%20Share) For the three months ended June 30, 2025, basic EPS was **$1.47** and diluted EPS was **$1.45**, both higher than the prior year, with similar growth for the six-month period Earnings Per Share Data | Metric | June 30, 2025 (Three Months) | June 30, 2024 (Three Months) | June 30, 2025 (Six Months) | June 30, 2024 (Six Months) | | :--- | :--- | :--- | :--- | :--- | | Net income attributable to common shareholders (thousand dollars) | 11,330 | 8,118 | 22,294 | 17,317 | | Weighted average common shares outstanding (thousand shares) | 7,707 | 7,972 | 7,828 | 7,978 | | Diluted weighted average common shares outstanding (thousand shares) | 7,781 | 8,019 | 7,903 | 8,029 | | Basic earnings per share | 1.47 | 1.02 | 2.85 | 2.17 | | Diluted earnings per share | 1.45 | 1.02 | 2.82 | 2.16 | - For the three months ended June 30, 2025, **6,897 common stock options** were not included in the diluted EPS calculation as their effect was antidilutive[45](index=45&type=chunk) [5. Credit Quality and Allowance for Credit Losses](index=15&type=section&id=5.%20Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) As of June 30, 2025, total loans reached **$2.76 billion**, up **1.7%**, while the total allowance for credit losses was **$35.2 million**; nonperforming loans significantly increased to **$23.3 million**, primarily due to loan downgrades Loan Portfolio Composition | Loan Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | Change (%) | | :--- | :--- | :--- | :--- | | Total real estate loans | 2,311,874 | 2,269,934 | 1.8% | | Total other loans | 452,664 | 448,251 | 1.0% | | **Total Loans** | **2,764,538** | **2,718,185** | **1.7%** | Allowance for Credit Losses (ACL) Summary | Metric | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :--- | :--- | :--- | | Total allowance for loan losses | 33,432 | 32,916 | | ACL for unfunded loan commitments | 1,730 | 2,700 | | **Total Allowance for Credit Losses** | **35,162** | **35,616** | - As of June 30, 2025, total nonperforming loans were **$23.3 million**, a significant increase from **$13.6 million** as of December 31, 2024, primarily due to four loan relationships becoming nonperforming during 2025[66](index=66&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, total substandard loans were **$49.8 million**, an increase of **39.2%** from **$35.8 million** as of December 31, 2024[145](index=145&type=chunk)[148](index=148&type=chunk) - As of June 30, 2025, total foreclosed assets and ORE were **$2.1 million**, slightly higher than **$2.0 million** as of December 31, 2024[82](index=82&type=chunk) [6. Derivatives and Hedging Activities](index=27&type=section&id=6.%20Derivatives%20and%20Hedging%20Activities) The company uses interest rate derivatives, primarily swaps, for cash flow hedging of floating-rate liabilities, with designated derivative assets valued at **$1.88 million** as of June 30, 2025, while non-designated derivatives serve client needs with minimized company risk - The company uses interest rate derivatives to stabilize interest expense and manage interest rate fluctuation risk, primarily through interest rate swap agreements for cash flow hedges of floating-rate liabilities[86](index=86&type=chunk) Fair Value of Derivative Financial Instruments | Derivative Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :--- | :--- | :--- | | **Designated as Hedging Instruments:** | | | | Interest rate swaps - floating rate liabilities (asset) | 1,881 | 3,241 | | **Not Designated as Hedging Instruments:** | | | | Interest rate contracts (asset) | 279 | 26 | | Interest rate contracts (liability) | 310 | 42 | | Risk participation agreements (liability) | 1 | — | | **Net Derivative Assets** | **2,160** | **3,267** | | **Net Derivative Liabilities** | **311** | **42** | - As of June 30, 2025, accumulated unrealized gains on derivative instruments (net of tax) were **$1.36 million**, down from **$2.42 million** as of December 31, 2024[91](index=91&type=chunk) - The company estimates that an additional **$1.40 million** in interest expense will be reclassified from accumulated other comprehensive income within the next twelve months[87](index=87&type=chunk) [7. Long-term Debt and Borrowings](index=30&type=section&id=7.%20Long-term%20Debt%20and%20Borrowings) Long-term debt includes **$55 million** in subordinated notes due 2032, with a carrying value of **$54.6 million** as of June 30, 2025; total FHLB advances significantly decreased to **$88.2 million** from **$175.5 million** at year-end 2024 - On June 30, 2022, the company issued **$55 million** of **5.75%** fixed-to-floating rate subordinated notes due 2032, intended as Tier 2 capital for regulatory purposes[102](index=102&type=chunk) Summary of Long-term Debt and Borrowings | Debt Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :--- | :--- | :--- | | Subordinated debt, net | 54,567 | 54,459 | | Other borrowings | 5,539 | 5,539 | | Short-term FHLB advances | 75,000 | 137,220 | | Long-term FHLB advances | 13,196 | 38,326 | | **Total FHLB Advances** | **88,196** | **175,546** | - As of June 30, 2025, the company had an additional **$1.20 billion** in available FHLB advances[106](index=106&type=chunk) [8. Fair Value Measurements and Disclosures](index=31&type=section&id=8.%20Fair%20Value%20Measurements%20and%20Disclosures) The company categorizes fair value measurements into three levels, with available-for-sale securities and derivatives primarily Level 2; non-recurring measurements for individually evaluated loans and ORE are typically Level 3, relying on unobservable inputs like appraisals and discounted cash flows - Fair value measurements are categorized into three levels: Level 1 (quoted prices in active markets), Level 2 (observable inputs other than quoted prices), and Level 3 (unobservable inputs)[111](index=111&type=chunk) Assets Measured at Fair Value on a Recurring Basis (June 30, 2025) | Asset Type | Total (thousand dollars) | Level 1 (thousand dollars) | Level 2 (thousand dollars) | Level 3 (thousand dollars) | | :--- | :--- | :--- | :--- | :--- | | Available-for-sale securities | 393,462 | — | 393,462 | — | | Derivative assets | 2,160 | — | 2,160 | — | | **Total** | **395,622** | **—** | **395,622** | **—** | Assets Measured at Fair Value on a Nonrecurring Basis (June 30, 2025) | Asset Type | Total (thousand dollars) | Level 1 (thousand dollars) | Level 2 (thousand dollars) | Level 3 (thousand dollars) | | :--- | :--- | :--- | :--- | :--- | | Individually evaluated loans | 2,811 | — | — | 2,811 | | Foreclosed assets and ORE | 2,077 | — | — | 2,077 | | **Total** | **4,888** | **—** | **—** | **4,888** | - Fair value measurements for individually evaluated loans and foreclosed assets and ORE primarily use third-party appraisals and discounted cash flows, involving unobservable inputs such as collateral values, market discounts, and estimated costs to sell[122](index=122&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=35&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) This section discusses the company's financial condition and operating results for the period ended June 30, 2025, including forward-looking statements, an executive overview, detailed financial analysis, liquidity management, and critical accounting estimates [Forward-Looking Statements](index=36&type=section&id=Forward-Looking%20Statements) This section cautions that statements regarding future plans, objectives, or financial performance are forward-looking and subject to risks and uncertainties, and the company undertakes no obligation to update them - Forward-looking statements are based on management's current information, estimates, and assumptions, and are influenced by current economic conditions[129](index=129&type=chunk) - Actual results may differ materially from expectations due to various risks and uncertainties, including loan activity, credit quality, interest rates, real estate values, economic conditions, and regulatory changes[129](index=129&type=chunk) - The company undertakes no obligation to update these forward-looking statements to reflect future events or circumstances[129](index=129&type=chunk) [EXECUTIVE OVERVIEW](index=36&type=section&id=EXECUTIVE%20OVERVIEW) The company achieved **$11.3 million** net income in Q2 2025, up **39.6%**, with diluted EPS of **$1.45**, and **$22.3 million** net income for H1, up **28.7%**, with improved net interest margin despite rising nonperforming assets Q2 and H1 2025 Performance Overview | Metric | 2025 Q2 | 2024 Q2 | Change (%) | 2025 H1 | 2024 H1 | Change (%) | | :--- | :--- | :--- | :--- | :--- | :--- | :--- | | Net Income (million dollars) | 11.3 | 8.1 | 39.6% | 22.3 | 17.3 | 28.7% | | Diluted EPS (dollars) | 1.45 | 1.02 | 42.2% | 2.82 | 2.16 | 30.6% | | Total Assets (billion dollars) | 3.5 | N/A | 1.4% (vs Dec 2024) | N/A | N/A | N/A | | Total Loans (billion dollars) | 2.8 | N/A | 1.7% (vs Dec 2024) | N/A | N/A | N/A | | Provision for Loan Losses (thousand dollars) | 489 | 1,261 | -61.2% | 883 | 1,402 | -37.0% | | Nonperforming Assets (million dollars) | 25.4 | N/A | 62.9% (vs Dec 2024) | N/A | N/A | N/A | | Total Deposits (billion dollars) | 2.9 | N/A | 4.6% (vs Dec 2024) | N/A | N/A | N/A | | Net Interest Margin | 4.04% | 3.66% | +38 bps | 3.98% | 3.65% | +33 bps | | Average Rate on Interest-Bearing Deposits | 2.52% | 2.69% | -17 bps | 2.52% | 2.60% | -8 bps | | Total Interest Expense (thousand dollars) | 15,278 | 16,065 | -4.9% | 30,730 | 31,290 | -1.8% | - The increase in nonperforming assets was primarily due to three loan relationships classified as substandard in 2024 and moved to nonaccrual in 2025, and three loan relationships downgraded to substandard and moved to nonaccrual in 2025[131](index=131&type=chunk) [FINANCIAL CONDITION](index=37&type=section&id=FINANCIAL%20CONDITION) This section analyzes the company's financial position, covering loan portfolio, allowance for credit losses, asset quality, investment securities, funding sources (deposits, subordinated debt, FHLB advances), shareholders' equity, and regulatory capital ratios [Loans, Allowance for Credit Losses and Asset Quality](index=37&type=section&id=Loans,%20Allowance%20for%20Credit%20Losses%20and%20Asset%20Quality) As of June 30, 2025, total loans reached **$2.8 billion**, up **1.7%**, with an allowance for loan losses of **$33.4 million**; nonperforming loans surged **71.7%** to **$23.4 million**, and substandard loans increased **39.2%** to **$49.8 million** Loan Portfolio Composition and Changes | Loan Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | Change (thousand dollars) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | One-to-four family first mortgage loans | 504,145 | 501,225 | 2,920 | 0.6% | | Home equity loans and lines of credit | 81,178 | 79,097 | 2,081 | 2.6% | | Commercial real estate | 1,218,168 | 1,158,781 | 59,387 | 5.1% | | Construction and land | 324,574 | 352,263 | (27,689) | (7.9)% | | Multi-family residential | 183,809 | 178,568 | 5,241 | 2.9% | | Commercial and industrial | 421,997 | 418,627 | 3,370 | 0.8% | | Consumer loans | 30,667 | 29,624 | 1,043 | 3.5% | | **Total Loans** | **2,764,538** | **2,718,185** | **46,353** | **1.7%** | - As of June 30, 2025, the total allowance for loan losses was **$33.4 million**, representing **1.21%** of total loans, consistent with December 31, 2024[139](index=139&type=chunk) - Total nonperforming loans increased from **$13.6 million** as of December 31, 2024, to **$23.4 million** as of June 30, 2025, a **71.7%** increase, primarily due to four loan relationships becoming nonperforming[148](index=148&type=chunk) Nonperforming Assets Composition | Nonperforming Asset Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :--- | :--- | :--- | | Total nonaccrual loans | 23,340 | 13,582 | | Accruing loans 90 days or more past due | 12 | 16 | | Foreclosed assets and ORE | 2,077 | 2,010 | | **Total Nonperforming Assets** | **25,429** | **15,608** | [Investment Securities](index=41&type=section&id=Investment%20Securities) As of June 30, 2025, the total investment securities portfolio was **$394.5 million**, a **2.3%** decrease from year-end 2024, with net unrealized losses on available-for-sale securities decreasing to **$30.2 million**, and effective duration falling to **3.6 years** - The total investment securities portfolio was **$394.5 million**, a decrease of **$9.3 million (2.3%)** from December 31, 2024[154](index=154&type=chunk) - Net unrealized losses on the available-for-sale investment securities portfolio decreased from **$41.0 million** as of December 31, 2024, to **$30.2 million** as of June 30, 2025[154](index=154&type=chunk) - The effective duration of the investment securities portfolio decreased from **3.9 years** as of December 31, 2024, to **3.6 years** as of June 30, 2025[154](index=154&type=chunk) [Funding Sources](index=41&type=section&id=Funding%20Sources) As of June 30, 2025, total deposits grew **4.6%** to **$2.9 billion**, with time deposits up **11.5%**, while the average rate on interest-bearing deposits decreased **17 bps**; FHLB advances significantly reduced to **$88.2 million** due to repayments Deposit Composition and Changes | Deposit Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | Change (thousand dollars) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Noninterest-bearing demand deposits | 796,844 | 733,073 | 63,771 | 8.7% | | Savings deposits | 204,191 | 210,977 | (6,786) | (3.2)% | | Money market deposits | 463,332 | 457,483 | 5,849 | 1.3% | | NOW accounts | 625,793 | 645,246 | (19,453) | (3.0)% | | Time deposits | 818,074 | 733,917 | 84,157 | 11.5% | | **Total Deposits** | **2,908,234** | **2,780,696** | **127,538** | **4.6%** | - The average rate on interest-bearing deposits for the second quarter of 2025 was **2.52%**, a decrease of **17 basis points** from the second quarter of 2024[159](index=159&type=chunk) - Total FHLB advances decreased from **$175.5 million** as of December 31, 2024, to **$88.2 million** as of June 30, 2025, primarily due to the repayment of BTFP borrowings and a reduction in short-term FHLB advances[164](index=164&type=chunk)[165](index=165&type=chunk) - As of June 30, 2025, total uninsured deposits were **$887.9 million**, up from **$813.6 million** as of December 31, 2024[160](index=160&type=chunk) [Shareholders' Equity](index=42&type=section&id=Shareholders'%20Equity) Total shareholders' equity increased **3.2%** to **$408.8 million** as of June 30, 2025, driven by net income and reduced accumulated other comprehensive losses, with both company and bank regulatory capital ratios exceeding requirements - Total shareholders' equity increased from **$396.1 million** as of December 31, 2024, to **$408.8 million** as of June 30, 2025, a **$12.7 million (3.2%)** increase[166](index=166&type=chunk) - The increase in shareholders' equity was primarily attributable to **$22.3 million** in net income and a reduction in accumulated other comprehensive losses on available-for-sale investment securities, partially offset by cash dividends on common stock and share repurchases[166](index=166&type=chunk) Company and Bank Regulatory Capital Ratios (June 30, 2025) | Capital Type | Company Actual Ratio | Bank Actual Ratio | Regulatory Minimum (Basel III) | To Be Well Capitalized | | :--- | :--- | :--- | :--- | :--- | | Tier 1 Risk-Based Capital | 11.99% | 13.45% | 8.50% | N/A | | Total Risk-Based Capital | 15.08% | 14.66% | 10.50% | N/A | | Tier 1 Leverage Capital | 10.23% | 11.47% | 4.00% | N/A | | Common Equity Tier 1 Capital (Bank) | N/A | 13.45% | 7.00% | 6.50% | [LIQUIDITY AND ASSET/LIABILITY MANAGEMENT](index=43&type=section&id=LIQUIDITY%20AND%20ASSET/LIABILITY%20MANAGEMENT) The company manages liquidity through deposits, loan amortizations, and FHLB borrowing capacity, while asset/liability management optimizes net interest income via interest rate sensitivity analysis and uses interest rate swaps to mitigate risk, with disclosures on unfunded commitments - The company primarily obtains funds through deposits, loan amortizations, loan prepayments, investment securities maturities, and funds provided by operations[169](index=169&type=chunk) - As of June 30, 2025, total time deposits maturing within the next 12 months amounted to **$781.9 million**[170](index=170&type=chunk) Impact of Interest Rate Changes on Net Interest Income (June 30, 2025) | Interest Rate Change (basis points) | Estimated Change in Net Interest Income (%) | | :--- | :--- | | +200 | 3.8% | | +100 | 2.0% | | -100 | (2.4)% | | -200 | (5.2)% | Commitments for Unfunded Loans and Letters of Credit | Commitment Type | June 30, 2025 (thousand dollars) | December 31, 2024 (thousand dollars) | | :--- | :--- | :--- | | Standby letters of credit | 6,121 | 6,502 | | Available portion of lines of credit | 469,065 | 488,930 | | Undisbursed portion of loans in process | 72,543 | 76,424 | | Loan commitments | 155,614 | 161,482 | [RESULTS OF OPERATIONS](index=44&type=section&id=RESULTS%20OF%20OPERATIONS) This section analyzes the company's operating results for Q2 and H1 2025, detailing net income, provision for loan losses, net interest income, noninterest income, noninterest expense, and income tax expense, along with year-over-year changes and driving factors [Net Income and Provision for Loan Losses](index=44&type=section&id=Net%20Income%20and%20Provision%20for%20Loan%20Losses) Net income for Q2 2025 was **$11.3 million**, up **39.6%**, with diluted EPS of **$1.45**; H1 net income was **$22.3 million**, up **28.7%**, with diluted EPS of **$2.82**, and loan loss provisions were **$489 thousand** and **$883 thousand** respectively, driven by loan growth - Net income for the second quarter of 2025 was **$11.3 million**, a **39.6%** increase year-over-year; diluted EPS was **$1.45**, up **42.2%**[182](index=182&type=chunk) - Net income for the first half of 2025 was **$22.3 million**, a **28.7%** increase year-over-year; diluted EPS was **$2.82**, up **30.6%**[183](index=183&type=chunk) - For the second quarter and first half of 2025, the company recorded provisions for loan losses of **$489 thousand** and **$883 thousand**, respectively, primarily due to loan growth[184](index=184&type=chunk) [Net Interest Income](index=45&type=section&id=Net%20Interest%20Income) Net interest income for Q2 2025 was **$33.4 million**, up **13.5%**, and for H1 was **$65.1 million**, up **11.7%**, with improved net interest margin and yield, driven by higher earning asset yields and lower funding costs - Net interest income for the second quarter of 2025 was **$33.4 million**, a **13.5%** increase year-over-year; for the first half, it was **$65.1 million**, up **11.7%**[186](index=186&type=chunk) - The net interest margin (tax-equivalent) for the second quarter of 2025 was **3.21%**, and the net interest yield was **4.04%**, both higher than the prior year period[185](index=185&type=chunk)[187](index=187&type=chunk) Net Interest Income Variance Analysis (2025 vs 2024) | Item | Due to Rate Change (thousand dollars) | Due to Volume Change (thousand dollars) | Total Change (thousand dollars) | | :--- | :--- | :--- | :--- | | **Three Months** | | | | | Total interest income | 1,482 | 1,689 | 3,171 | | Total interest expense | (1,508) | 721 | (787) | | **Increase in Net Interest Income** | **2,990** | **968** | **3,958** | | **Six Months** | | | | | Total interest income | 2,915 | 3,331 | 6,246 | | Total interest expense | (1,281) | 721 | (560) | | **Increase in Net Interest Income** | **4,196** | **2,610** | **6,806** | [Noninterest Income](index=48&type=section&id=Noninterest%20Income) Noninterest income for Q2 2025 was **$3.7 million**, down **1.0%**, mainly due to reduced other income (lack of derivative fee income), partially offset by higher service charges; H1 noninterest income was **$7.7 million**, up **5.8%**, driven by increased loan sale gains and service fees - Noninterest income for the second quarter of 2025 was **$3.7 million**, a **1.0%** decrease year-over-year, primarily due to a **$143 thousand** reduction in other income (absence of derivative fee income), partially offset by a **$106 thousand** increase in service charges and fees[195](index=195&type=chunk) - Noninterest income for the first half of 2025 was **$7.7 million**, a **5.8%** increase year-over-year, primarily due to a **$278 thousand** increase in gains on sale of loans (mainly SBA loan sales) and a **$161 thousand** increase in service charges and fees, partially offset by a **$46 thousand** decrease in other income[196](index=196&type=chunk) [Noninterest Expense](index=48&type=section&id=Noninterest%20Expense) Noninterest expense for Q2 2025 was **$22.4 million**, up **2.7%**, driven by higher other expenses, compensation, and foreclosed assets, partially offset by a reversal of unfunded loan commitment credit losses and reduced professional services; H1 saw similar trends with a **3.1%** increase - Noninterest expense for the second quarter of 2025 was **$22.4 million**, a **2.7%** increase year-over-year, primarily due to an **$852 thousand** increase in other expenses (SBA receivable guarantee write-offs), a **$534 thousand** increase in salaries and employee benefits, and a **$330 thousand** increase in foreclosed assets, partially offset by an **$836 thousand** reversal of the allowance for credit losses on unfunded loan commitments and an **$185 thousand** decrease in professional services fees[197](index=197&type=chunk) - Noninterest expense for the first half of 2025 was **$44.0 million**, a **3.1%** increase year-over-year, primarily due to a **$1.0 million** increase in salaries and employee benefits, an **$821 thousand** increase in other expenses, and a **$492 thousand** net increase in foreclosed assets, partially offset by an **$836 thousand** reversal of the allowance for credit losses on unfunded loan commitments[198](index=198&type=chunk) [Income Taxes](index=48&type=section&id=Income%20Taxes) Income tax expense for Q2 2025 was **$2.8 million** and for H1 was **$5.7 million**, both increasing year-over-year due to higher taxable income, with effective tax rates of **20.0%** and **20.3%** respectively - Income tax expense for the second quarter of 2025 was **$2.8 million**, compared to **$2.0 million** in the prior year period[199](index=199&type=chunk) - Income tax expense for the first half of 2025 was **$5.7 million**, compared to **$4.2 million** in the prior year period[199](index=199&type=chunk) - The increase in income tax expense was primarily due to growth in taxable income[199](index=199&type=chunk) - The effective tax rates for the second quarter and first half of 2025 were **20.0%** and **20.3%**, respectively, higher than the **19.5%** in the prior year period[200](index=200&type=chunk) [CRITICAL ACCOUNTING ESTIMATES](index=49&type=section&id=CRITICAL%20ACCOUNTING%20ESTIMATES) Management considers the allowance for credit losses policy the most critical accounting estimate, determined by continuous evaluation of the loan portfolio and reasonable forecasts of future credit losses, considering economic conditions and asset quality changes, subject to regulatory review - Management considers the allowance for credit losses policy to be the most critical accounting policy in the presentation of the financial statements[203](index=203&type=chunk) - The amount of the allowance for credit losses reflects management's ongoing evaluation of expected credit losses over the life of the loan portfolio[203](index=203&type=chunk) - The estimation process considers relevant information from internal and external sources, including past events, current conditions, and reasonable and supportable forecasts of future losses, with qualitative adjustments[203](index=203&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=49&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This section refers to the company's 2024 10-K annual report for market risk disclosures, with additional information for June 30, 2025, included in Item 2's 'Liquidity and Asset/Liability Management' section - Quantitative and qualitative disclosures about market risk primarily refer to the relevant sections in the company's 2024 10-K annual report[204](index=204&type=chunk) - Additional market risk information as of June 30, 2025, is included in Item 2, 'Liquidity and Asset/Liability Management'[204](index=204&type=chunk) [Item 4. Controls and Procedures](index=49&type=section&id=Item%204.%20Controls%20and%20Procedures) Management assessed the effectiveness of disclosure controls and procedures as of the reporting period end, concluding they are effectively designed and operated, with no significant internal control changes during the quarter - The company's management evaluated the effectiveness of disclosure controls and procedures and concluded they are effectively designed and operated[205](index=205&type=chunk) - Disclosure controls and procedures are designed to ensure that information required to be recorded, processed, summarized, and reported is done so on a timely and accurate basis in accordance with SEC rules and regulations[205](index=205&type=chunk) - No significant changes in internal control occurred during the second quarter of 2025[206](index=206&type=chunk) [PART II - OTHER INFORMATION](index=50&type=section&id=PART%20II%20-%20OTHER%20INFORMATION) [Item 1. Legal Proceedings](index=50&type=section&id=Item%201.%20Legal%20Proceedings) There are no legal proceedings requiring disclosure during this reporting period - Not applicable[207](index=207&type=chunk) [Item 1A. Risk Factors](index=50&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the 2024 10-K annual report were identified during this reporting period - There have been no material changes to the risk factors disclosed in the company's 2024 10-K annual report during this reporting period[208](index=208&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=50&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) In Q2 2025, the company repurchased **147,243 common shares** at an average price of **$43.72** per share, with **391,072 shares** remaining available under the 2025 repurchase plan as of June 30, 2025 Common Stock Repurchases in Q2 2025 | Period | Total Shares Repurchased | Average Price Paid Per Share (dollars) | Total Number of Shares Purchased as Part of Publicly Announced Plans | Maximum Number of Shares That May Yet Be Purchased Under the Plans | | :--- | :--- | :--- | :--- | :--- | | April 1 – April 30, 2025 | 126,503 | 42.57 | 126,503 | 411,812 | | May 1 – May 31, 2025 | — | — | — | 411,812 | | June 1 – June 30, 2025 | 20,740 | 50.78 | 20,740 | 391,072 | | **Total** | **147,243** | **43.72** | **147,243** | **391,072** | - On April 21, 2025, the company approved a new stock repurchase plan (2025 Repurchase Plan) authorizing the repurchase of up to an additional **400,000 shares**[210](index=210&type=chunk) [Item 3. Defaults Upon Senior Securities](index=50&type=section&id=Item%203.%20Defaults%20Upon%20Senior%20Securities) There were no defaults upon senior securities during this reporting period - Not applicable[211](index=211&type=chunk) [Item 4. Mine Safety Disclosures](index=50&type=section&id=Item%204.%20Mine%20Safety%20Disclosures) There were no mine safety disclosures during this reporting period - Not applicable[211](index=211&type=chunk) [Item 5. Other Information](index=50&type=section&id=Item%205.%20Other%20Information) No directors or officers adopted, terminated, or modified Rule 10b5-1 or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025 - No directors or executive officers of the company adopted, terminated, or modified any Rule 10b5-1 trading arrangements or non-Rule 10b5-1 trading arrangements during the fiscal quarter ended June 30, 2025[212](index=212&type=chunk) [Item 6. Exhibits](index=52&type=section&id=Item%206.%20Exhibits) This section lists exhibits filed with the report, including the indenture for subordinated notes, CEO and CFO certifications, and XBRL data files - Exhibits include the indenture dated June 30, 2022, for the **5.75%** fixed-to-floating rate subordinated notes[216](index=216&type=chunk) - Exhibits also include Rule 13(a)-14(a) certifications by the Chief Executive Officer and Chief Financial Officer, as well as Section 1350 certifications[216](index=216&type=chunk) - XBRL-related documents (Instance Document, Schema Document, Calculation Linkbase Document, Definitions Linkbase Document, Label Linkbase Document, Presentation Linkbase Document) are also filed as exhibits[216](index=216&type=chunk) [SIGNATURES](index=53&type=section&id=SIGNATURES) The report is signed by John W. Bordelon, David T. Kirkley, and Mary H. Hopkins, with all signatures dated August 1, 2025 - The report is signed by John W. Bordelon (Chairman, President, and Chief Executive Officer), David T. Kirkley (Senior Executive Vice President and Chief Financial Officer), and Mary H. Hopkins (Senior Vice President and Director of Financial Management of Home Bank, N. A.)[221](index=221&type=chunk) - All signatures are dated August 1, 2025[221](index=221&type=chunk)

Core Insights - Home Bancorp reported a second quarter net income of $11.3 million, translating to $1.45 per share, which is an increase of $0.08 from the first quarter and $0.43 from the same period last year [4]. Financial Performance - The net interest margin expanded for the fifth consecutive quarter, reaching 4.04% [4]. - Return on assets (ROA) increased by 2 basis points to 1.31% [4]. - The margin expansion was primarily driven by an 8 basis point increase in earning asset yields, stable interest-bearing deposit costs, loan growth, and a 6% increase in noninterest-bearing deposits [4].

Financial Data and Key Metrics Changes - The company reported a net income of $11.3 million, or $1.45 per share, which is an increase of $0.08 from the previous quarter and $0.43 from a year ago [3][4] - Net interest margin (NIM) expanded for the fifth consecutive quarter to 4.04%, a 13 basis point increase from the prior quarter [4][9] - Return on assets (ROA) increased by two basis points to 1.31% [4] Business Line Data and Key Metrics Changes - Loans grew by $17.3 million in the second quarter, approximately 3%, but were negatively impacted by slower commercial construction activity and $20 million in paydowns [4][9] - Noninterest-bearing deposits increased by $41.9 million, remaining at 27% of total deposits at the end of the quarter [5][13] - Classified and nonperforming loans increased primarily due to four loans downgraded during the quarter totaling $18 million [5][11] Market Data and Key Metrics Changes - Deposits increased at an annual rate of 11% in the second quarter, with a focus on funding loan growth with core deposits [5][13] - The cost of interest-bearing liabilities decreased by three basis points to 2.71% due to strong deposit growth [13] Company Strategy and Development Direction - The company is committed to finding partners for mergers and acquisitions that are a good long-term fit, with solid capital levels and improving valuation [6][7] - The focus has shifted towards core deposit growth, with changes in incentive plans to prioritize core deposits over loan growth [43] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook and ability to deliver on high expectations, citing a strong leadership team with a track record of outperforming peers [8] - There is an expectation that loan growth will pick up if there are one or two rate cuts in the second half of the year [4][5] Other Important Information - Noninterest expenses increased by $828,000 to $22.4 million, primarily due to compensation-related expenses [14][15] - The company has repurchased 147,000 shares at an average price of $43.72, with about 391,000 shares remaining on the buyback plan [17][18] Q&A Session Summary Question: Can you provide more color on loan growth trends and the need for rate cuts? - Management indicated that there is some demand waiting for lower interest rates, and paydowns have negatively impacted growth rates [23][24] Question: What is the best-case scenario for net interest income (NII) in a rate cut environment? - Management believes that a steeper rate curve with rate cuts could still support an expanding NIM, with new higher-yielding investments coming in [26][27] Question: How productive are the new branch locations expected to be? - Management expects the new branches to be considerably productive, especially in attracting more deposits from commercial customers [41][42] Question: Were there any one-time factors that accelerated NIM expansion this quarter? - Management confirmed there were no one-time adjustments impacting NIM in an upward trajectory [48] Question: What are the criteria for potential M&A opportunities? - The company is looking at opportunities in the $350 million to $1 billion range, primarily in Texas and Louisiana [58][60]

Financial Data and Key Metrics Changes - The company reported a net income of $11.3 million, or $0.45 per share, which is an increase of $0.08 from the previous quarter and $0.43 from a year ago [4] - Net interest margin (NIM) expanded for the fifth consecutive quarter to 4.04%, a 13 basis point increase from the prior quarter [5][9] - Return on assets (ROA) increased by two basis points to 1.31% [5] Business Line Data and Key Metrics Changes - Loans grew by $17.3 million in the second quarter, approximately 3%, but were negatively impacted by slower commercial construction activity and $20 million in paydowns [5][10] - Noninterest bearing deposits increased by $41.9 million, remaining at 27% of total deposits at the end of the quarter [6][14] - Classified and nonperforming loans increased primarily due to four loans downgraded during the quarter totaling $18 million [6][12] Market Data and Key Metrics Changes - The company experienced an 11% annual rate increase in deposits during the second quarter [6] - The cost of interest-bearing liabilities decreased by three basis points to 2.71% [14] - The overall cost of deposits in Q2 was 1.84%, a decline of one basis point quarter over quarter [15] Company Strategy and Development Direction - The company is focused on funding loan growth with core deposits and reducing the loan-to-deposit ratio to a target range of 90% to 92% [6] - There is a commitment to finding long-term partners for mergers and acquisitions, with a focus on maintaining solid capital levels and improving valuation [7][18] - The company aims to attract more deposits through upgraded branch locations, particularly in Houston [35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's outlook and ability to deliver on high expectations, citing strong leadership and a track record of outperforming peers [8] - The management anticipates that loan growth will pick up if there are one or two rate cuts in the second half of the year [5] - The company expects to see margin and revenue growth as a significant portion of the investment portfolio is projected to be paid off over the next three years [11] Other Important Information - Noninterest expenses increased by $828,000 to $22.4 million, primarily due to compensation-related expenses [15][16] - The company has repurchased 147,000 shares at an average price of $43.72, with about 391,000 shares remaining on the buyback plan [17] - The tangible book value per share has grown at an 8% annualized growth rate since February 2019 [18] Q&A Session Summary Question: Can you provide more details on loan growth trends and the need for rate cuts? - Management indicated that some demand is waiting for lower interest rates, and paydowns have negatively impacted growth rates [23][25] Question: What is the best-case scenario for net interest income (NII) in a rate cut environment? - Management believes that a steeper rate curve with rate cuts could still support an expanding NIM, and they expect NII to continue to increase [26][27] Question: How productive will the new branch locations be? - Management expects the new branches to be considerably productive, especially in attracting more deposits from commercial customers [35] Question: Has there been any change in strategy for growing DDA balances? - The company has focused on core deposit growth and changed its incentive plan to prioritize core deposits over loan growth [37] Question: Were there any one-time factors that accelerated NIM expansion this quarter? - Management confirmed that there were no one-time adjustments impacting NIM in an upward trajectory [39] Question: What are the criteria for potential M&A opportunities? - The company is looking at larger acquisitions now that its stock is trading at a higher valuation, primarily focusing on Texas and Louisiana [48][49]

Financial Highlights - Total assets reached $35 billion as of June 30, 2025[10] - Total loans amounted to $28 billion[10] - Total deposits were $29 billion[10] - Net interest margin (NIM) increased to 404% in Q2 2025[14] - Return on average assets (ROA) was 131% in Q2 2025[14] Loan Portfolio - Total loans reached $28 billion with a YTD annualized growth rate of 3%[30] - Houston market experienced an 18% annualized growth rate YTD[30] - Commercial Real Estate Owner Occupied (CRE OOO) loans constitute 26% of the total loan portfolio[29] - Commercial & Industrial (C&I) loans make up 153% of the total loans[41] Deposits - Total deposits reached $2908234 thousand in Q2 2025[71] - Non-interest bearing deposits represent 27% of the total deposit composition[72] - The annualized deposit growth rate for 2025 is 9%[72]

Group 1 - Home Bancorp (HBCP) reported revenue of $37.07 million for the quarter ended June 2025, reflecting an 11.8% increase year-over-year and a surprise of +3.54% over the Zacks Consensus Estimate of $35.8 million [1] - Earnings per share (EPS) for the quarter was $1.45, compared to $1.02 in the same quarter last year, resulting in an EPS surprise of +16.94% against the consensus estimate of $1.24 [1] - The stock has returned +13.3% over the past month, outperforming the Zacks S&P 500 composite's +5.4% change, and currently holds a Zacks Rank 3 (Hold) [3] Group 2 - Efficiency Ratio was reported at 60.5%, better than the estimated 62.9% by two analysts [4] - Net Interest Margin remained stable at 4%, matching the average estimate [4] - Total Average Interest-Earning Assets were $3.26 billion, consistent with the average estimate [4] - Total nonperforming loans amounted to $23.35 million, exceeding the estimated $18.97 million [4] - Total nonperforming assets were reported at $25.43 million, higher than the estimated $21.4 million [4] - Annualized YTD net loan recoveries (charge-offs) to average loans were at -0%, compared to the average estimate of 0.1% [4] - Total Noninterest Income was $3.72 million, slightly below the average estimate of $3.76 million [4] - Net Interest Income was reported at $33.35 million, surpassing the estimated $32.03 million [4]

Core Viewpoint - Home Bancorp (HBCP) reported quarterly earnings of $1.45 per share, exceeding the Zacks Consensus Estimate of $1.24 per share, and showing an increase from $1.02 per share a year ago, indicating a strong performance in the financial holding sector [1][2]. Financial Performance - The company achieved revenues of $37.07 million for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.54%, compared to $33.15 million in the same quarter last year [2]. - Home Bancorp has consistently outperformed consensus EPS estimates over the last four quarters, with an earnings surprise of +16.94% for the latest quarter and +20.18% in the previous quarter [1][2]. Stock Performance - Home Bancorp shares have increased approximately 21.4% since the beginning of the year, significantly outperforming the S&P 500's gain of 7.1% [3]. - The current Zacks Rank for Home Bancorp is 3 (Hold), indicating that the stock is expected to perform in line with the market in the near future [6]. Earnings Outlook - The consensus EPS estimate for the upcoming quarter is $1.29 on revenues of $36.75 million, and for the current fiscal year, it is $5.05 on revenues of $145.45 million [7]. - The trend of earnings estimate revisions is mixed ahead of the earnings release, which could influence future stock performance [6]. Industry Context - The Banks - Southeast industry, to which Home Bancorp belongs, is currently ranked in the top 15% of over 250 Zacks industries, suggesting a favorable outlook for companies within this sector [8].

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) Home Bancorp, Inc. reported strong Q2 2025 financial results, with increased net income, diluted EPS, and a dividend hike, alongside growth in loans and deposits [Q2 2025 Financial Performance Overview](index=1&type=section&id=Q2%202025%20Financial%20Performance%20Overview) Home Bancorp, Inc. reported strong financial results for the second quarter of 2025, with net income increasing to $11.3 million, or $1.45 diluted EPS, up from the previous quarter. The company also announced a 7% increase in its quarterly dividend | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------- | :-------- | :-------- | :----------- | | Net Income | $11.3M | $11.0M | +$0.366M | | Diluted EPS | $1.45 | $1.37 | +$0.08 | - The Board of Directors declared a quarterly cash dividend of **$0.29 per share**, representing a **7% increase**[1](index=1&type=chunk)[24](index=24&type=chunk) [CEO's Commentary](index=1&type=section&id=CEO%27s%20Commentary) The CEO highlighted strong Q2 2025 results, attributing success to growth in loans and deposits, and an upward trend in net interest margin due to stable deposit and funding costs. Despite an increase in nonperforming and criticized loans, no losses are anticipated, and the company maintains a solid allowance for loan losses - Growth observed in loans and deposits, with net interest margin continuing its upward trajectory[2](index=2&type=chunk) - Increase in nonperforming and criticized loans at quarter-end, but no losses are anticipated[2](index=2&type=chunk) - Maintained a solid allowance for loan losses to total loans of **1.21%**[2](index=2&type=chunk) [Key Financial Highlights](index=1&type=section&id=Key%20Financial%20Highlights) Key highlights for Q2 2025 include growth in loans and deposits, an increase in net interest income and net interest margin, and an increase in nonperforming assets primarily due to four loan relationships moved to nonaccrual status | Metric | Q2 2025 (June 30) | Q1 2025 (March 31) | Change (QoQ) | | :-------------------------- | :------------------ | :----------------- | :----------- | | Loans | $2.8B | $2.78B | +0.6% | | Deposits | $2.9B | $2.827B | +2.9% | | Net Interest Income | $33.4M | $31.7M | +5% | | Net Interest Margin (NIM) | 4.04% | 3.91% | +13 bps | | Nonperforming Assets (NPAs) | $25.4M (0.73% of assets) | $21.5M (0.62% of assets) | +18% | | Provision for Loan Losses | $489K | $394K | +24% | - The increase in nonperforming assets was primarily due to four loan relationships moved to nonaccrual status[3](index=3&type=chunk) [Loan Portfolio Analysis](index=2&type=section&id=Loan%20Portfolio%20Analysis) The Company's loan portfolio grew by 0.6% driven by commercial real estate, while nonperforming assets increased, though the allowance for loan losses remained stable [Loan Portfolio Composition and Changes](index=2&type=section&id=Loan%20Portfolio%20Composition%20and%20Changes) The Company's total loans increased by $17.3 million, or 0.6%, to $2.8 billion at June 30, 2025. Growth was primarily driven by commercial real estate loans, partially offset by declines in construction and land loans and commercial and industrial loans in specific markets | Loan Category (in thousands) | 6/30/2025 | 3/31/2025 | Increase (Decrease) | % Change | | :--------------------------- | :---------- | :---------- | :------------------ | :------- | | Real estate loans: | | | | | | One- to four-family first | $504,145 | $504,356 | $(211) | — % | | Home equity loans and lines | $81,178 | $77,417 | $3,761 | 5 % | | Commercial real estate | $1,218,168 | $1,193,364 | $24,804 | 2 % | | Construction and land | $324,574 | $346,987 | $(22,413) | (6) % | | Multi-family residential | $183,809 | $183,792 | $17 | — % | | **Total real estate loans** | **$2,311,874** | **$2,305,916** | **$5,958** | **— %** | | Other loans: | | | | | | Commercial and industrial | $421,997 | $411,363 | $10,634 | 3 % | | Consumer | $30,667 | $29,998 | $669 | 2 % |\ | **Total other loans** | **$452,664** | **$441,361** | **$11,303** | **3 %** | | **Total loans** | **$2,764,538** | **$2,747,277** | **$17,261** | **1 %** | - The average loan yield increased by **7 basis points** to **6.50%** for Q2 2025, driven by higher rates on new loans[5](index=5&type=chunk) - Growth in commercial real estate loans was partially offset by declines in construction and land loans (Houston and New Orleans markets) and commercial and industrial loans (Acadiana, Baton Rouge, and Houston markets)[5](index=5&type=chunk) [Credit Quality and Allowance for Credit Losses](index=2&type=section&id=Credit%20Quality%20and%20Allowance%20for%20Credit%20Losses) Nonperforming assets increased by 18% to $25.4 million, primarily due to four loan relationships moved to nonaccrual status. The Company recorded a higher provision for loan losses of $489,000, mainly due to loan growth, while the allowance for loan losses remained stable at 1.21% of total loans | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | % Change | | :-------------------- | :-------- | :-------- | :----------- | :------- | | Nonperforming Assets | $25,400 | $21,500 | +$4,000 | +18% | | NPAs as % of total assets | 0.73% | 0.62% | +0.11% | | | Net Loan Charge-offs | $335 | $32 | +$303 | +947% | | Provision for Loan Losses | $489 | $394 | +$95 | +24% | | Allowance for Loan Losses | $33,400 | $33,300 | +$100 | +0.3% | | ALLL as % of total loans | 1.21% | 1.21% | 0% | | - The increase in NPAs was primarily due to four loan relationships totaling **$6.2 million** placed on nonaccrual status[6](index=6&type=chunk) [Nonperforming Assets and Loans](index=14&type=section&id=Nonperforming%20Assets%20and%20Loans) Nonperforming assets increased to $25.4 million, with nonaccrual loans being the primary driver, particularly in one-to-four family first mortgages, commercial real estate, and construction and land loans | Nonaccrual Loan Category (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | | :-------------------------------------- | :-------- | :-------- | :----------- | | One- to four-family first mortgage | $6,272 | $6,368 | $(96) | | Home equity loans and lines | $1,033 | $372 | +$661 | | Commercial real estate | $7,669 | $4,349 | +$3,320 | | Construction and land | $6,103 | $5,584 | +$519 | | Multi-family residential | $916 | $930 | $(14) | | Commercial and industrial | $1,312 | $1,206 | +$106 | | Consumer | $35 | $161 | $(126) | | **Total nonaccrual loans** | **$23,340** | **$18,970** | **+$4,370** | | Accruing loans 90+ days past due | $12 | $77 | $(65) | | **Total nonperforming loans** | **$23,352** | **$19,047** | **+$4,305** | | Foreclosed assets and ORE | $2,077 | $2,424 | $(347) | | **Total nonperforming assets** | **$25,429** | **$21,471** | **+$3,958** | | Ratio | 6/30/2025 | 3/31/2025 | | :---------------------------------- | :-------- | :-------- | | Nonperforming assets to total assets | 0.73 % | 0.62 % | | Nonperforming loans to total assets | 0.67 % | 0.55 % | | Nonperforming loans to total loans | 0.84 % | 0.69 % | [Allowance for Loan Losses and Credit Quality Classifications](index=3&type=section&id=Allowance%20for%20Loan%20Losses%20and%20Credit%20Quality%20Classifications) The allowance for loan losses remained at 1.21% of total loans, with a provision of $489,000 in Q2 2025. The loan portfolio's credit quality showed an increase in substandard loans, particularly in commercial real estate | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | | :-------------------- | :-------- | :-------- | :----------- | | Beginning ALLL Balance | $33,278 | $32,916 | +$362 | | Provision for loan losses | $489 | $394 | +$95 | | Net charge-offs | $(335) | $(32) | $(303) | | Ending ALLL Balance | $33,432 | $33,278 | +$154 | | ALLL to total loans | 1.21% | 1.21% | 0% | | Loan Category (in thousands) | Substandard (6/30/2025) | Substandard (3/31/2025) | Change (QoQ) | | :--------------------------- | :---------------------- | :---------------------- | :----------- | | One- to four-family first | $6,741 | $6,842 | $(101) | | Home equity loans and lines | $1,033 | $372 | +$661 | | Commercial real estate | $31,367 | $18,444 | +$12,923 | | Construction and land | $6,232 | $5,714 | +$518 | | Multi-family residential | $1,237 | $1,256 | $(19) | | Commercial and industrial | $3,166 | $3,621 | $(455) | | Consumer | $35 | $160 | $(125) | | **Total Substandard** | **$49,811** | **$36,409** | **+$13,402** | | Ratio | 6/30/2025 | 3/31/2025 | | :-------------------------------------- | :-------- | :-------- | | Allowance for loan losses to nonperforming assets | 131.47 % | 154.99 % | | Allowance for loan losses to nonperforming loans | 143.17 % | 174.72 % | | Allowance for credit losses to total loans | 1.27 % | 1.31 % | [Investment Securities](index=3&type=section&id=Investment%20Securities) The investment securities portfolio decreased by 2% to $394.5 million, with an improved net unrealized loss position and a significant portion pledged for public deposits [Investment Securities Portfolio](index=3&type=section&id=Investment%20Securities%20Portfolio) The investment securities portfolio decreased by 2% to $394.5 million at June 30, 2025. The Company's net unrealized loss position improved, decreasing from $34.0 million to $30.2 million. Approximately 36% of the portfolio was pledged to secure public deposits | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | % Change | | :-------------------- | :-------- | :-------- | :----------- | :------- | | Total Investment Securities | $394,500 | $401,600 | $(7,100) | (2)% | | Net Unrealized Loss | $(30,200) | $(34,000) | +$3,800 | -11.2% | | Securities Purchases | $4,500 | $2,900 | +$1,600 | +55.2% | | Investment Type (in thousands) | Amortized Cost | Fair Value | | :----------------------------- | :------------- | :--------- | | **Available for sale:** | | | | U.S. agency mortgage-backed | $280,484 | $258,925 | | Collateralized mortgage obligations | $68,080 | $66,615 | | Municipal bonds | $53,240 | $46,942 | | U.S. government agency | $16,863 | $16,338 | | Corporate bonds | $4,985 | $4,642 | | **Total available for sale** | **$423,652** | **$393,462** | | **Held to maturity:** | | | | Municipal bonds | $1,065 | $1,066 | | **Total held to maturity** | **$1,065** | **$1,066** | - Approximately **36%** of the investment securities portfolio was pledged to secure public deposits at June 30, 2025[13](index=13&type=chunk) [Deposits](index=4&type=section&id=Deposits) Total deposits grew by 3% to $2.9 billion, driven by demand and certificates of deposit, with uninsured deposits increasing but public funds fully collateralized [Deposit Growth and Composition](index=4&type=section&id=Deposit%20Growth%20and%20Composition) Total deposits grew by 3% to $2.9 billion at June 30, 2025, with a notable increase in demand deposits and certificates of deposit. Non-maturity deposits also saw a slight increase | Deposit Category (in thousands) | 6/30/2025 | 3/31/2025 | Increase (Decrease) | % Change | | :------------------------------ | :---------- | :---------- | :------------------ | :------- | | Demand deposits | $796,844 | $754,955 | $41,889 | 6 % | | Savings | $204,191 | $212,053 | $(7,862) | (4) % | | Money market | $463,332 | $464,659 | $(1,327) | — % | | NOW | $625,793 | $641,287 | $(15,494) | (2) % | | Certificates of deposit | $818,074 | $754,253 | $63,821 | 8 % | | **Total deposits** | **$2,908,234** | **$2,827,207** | **$81,027** | **3 %** | - Non-maturity deposits increased by **$17.2 million**, or **1%**, during Q2 2025[14](index=14&type=chunk) - The average rate on interest-bearing deposits slightly increased by **1 basis point** to **2.52%** for Q2 2025[15](index=15&type=chunk) [Deposit Customer Type and Uninsured Deposits](index=4&type=section&id=Deposit%20Customer%20Type%20and%20Uninsured%20Deposits) The majority of deposits are sourced from individuals and small businesses. Uninsured deposits increased to $887.9 million, with public funds in excess of FDIC limits being fully collateralized | Customer Type | June 30, 2025 | March 31, 2025 | | :-------------- | :------------ | :------------- | | Individuals | 52% | 53% | | Small businesses | 38% | 36% | | Public funds | 7% | 8% | | Broker | 3% | 3% | | **Total** | **100%** | **100%** | | Metric (in thousands) | 6/30/2025 | 3/31/2025 | | :-------------------- | :-------- | :-------- | | Uninsured Deposits | $887,900 | $844,200 | - Public funds exceeding FDIC insurance limits are fully collateralized[17](index=17&type=chunk) [Net Interest Income and Margin](index=5&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest margin improved to 4.04% due to higher asset yields and lower liability costs, despite a slight increase in interest-bearing deposit costs [Net Interest Income and NIM Trends](index=5&type=section&id=Net%20Interest%20Income%20and%20NIM%20Trends) Net interest margin (NIM) increased by 13 basis points to 4.04% in Q2 2025, primarily driven by an increase in average yield on interest-earning assets and a decline in the average cost of interest-bearing liabilities | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :---------------- | :------ | :------ | :----------- | | Net Interest Margin | 4.04% | 3.91% | +13 bps | - The increase in NIM was primarily due to higher average yield on interest-earning assets and lower average cost for interest-bearing liabilities[18](index=18&type=chunk) [Interest-Earning Assets and Interest-Bearing Liabilities](index=5&type=section&id=Interest-Earning%20Assets%20and%20Interest-Bearing%20Liabilities) The average cost of interest-bearing deposits slightly increased, reflecting higher non-maturity deposit balances. Average other interest-earning assets grew significantly due to increased cash and cash equivalents, while FHLB advances decreased due to paydowns | Metric | Q2 2025 | Q1 2025 | Change (QoQ) | | :-------------------------- | :------ | :------ | :----------- | | Average Cost of Interest-Bearing Deposits | 2.52% | 2.51% | +1 bp | | Average Other Interest-Earning Assets (in millions) | $71.1M | $55.9M | +27% | | Average FHLB Advances (in millions) | $114.0M | $180.6M | -37% | - Loan accretion income from acquired loans remained unchanged at **$356,000** for Q2 2025[20](index=20&type=chunk) [Noninterest Income and Expense](index=5&type=section&id=Noninterest%20Income%20and%20Expense) Noninterest income decreased due to lower gains on loan sales, while noninterest expense increased, driven by other expenses and compensation, partially offset by a credit loss reversal [Noninterest Income](index=5&type=section&id=Noninterest%20Income) Noninterest income decreased by 7% to $3.7 million in Q2 2025, primarily due to lower gains on sale of loans and other income, partially offset by increases in bank card fees and service fees | Metric (in thousands) | Q2 2025 | Q1 2025 | Change (QoQ) | % Change | | :-------------------- | :------ | :------ | :----------- | :------- | | Total Noninterest Income | $3,716 | $4,009 | $(293) | (7)% | | Gain on sale of loans | $114 | $377 | $(263) | (70)% | | Other income | $227 | $458 | $(231) | (50)% | | Bank card fees | $1,750 | $1,578 | +$172 | +11% | | Service fees and charges | $1,345 | $1,309 | +$36 | +3% | [Noninterest Expense](index=5&type=section&id=Noninterest%20Expense) Noninterest expense increased by 4% to $22.4 million in Q2 2025, mainly driven by higher other expenses (including a write-off of an acquired SBA accounts receivable) and compensation and benefits, partially offset by a reversal to the allowance for credit losses on unfunded commitments | Metric (in thousands) | Q2 2025 | Q1 2025 | Change (QoQ) | % Change | | :-------------------- | :------ | :------ | :----------- | :------- | | Total Noninterest Expense | $22,407 | $21,579 | +$828 | +4% | | Other expenses | $2,181 | $1,178 | +$1,003 | +85% | | Compensation and benefits | $13,322 | $12,652 | +$670 | +5% | | Reversal for credit losses on unfunded commitments | $(970) | $0 | $(970) | N/A | - The increase in other expenses was primarily due to a write-off of an acquired SBA accounts receivable for guarantees[22](index=22&type=chunk) [Capital and Dividends](index=5&type=section&id=Capital%20and%20Dividends) Shareholders' equity increased by 1% due to earnings and reduced comprehensive loss, while the company declared a higher dividend and repurchased shares [Shareholders' Equity and Capital Ratios](index=5&type=section&id=Shareholders%27%20Equity%20and%20Capital%20Ratios) Shareholders' equity increased by 1% to $408.8 million, driven by earnings and a decrease in accumulated other comprehensive loss, partially offset by dividends and share repurchases. Preliminary capital ratios remained strong | Metric (in thousands) | 6/30/2025 | 3/31/2025 | Change (QoQ) | % Change | | :-------------------- | :-------- | :-------- | :----------- | :------- | | Shareholders' Equity | $408,818 | $402,831 | +$5,987 | +1% | | Preliminary Tier 1 Leverage Capital Ratio | 11.47% | 11.48% | -0.01% | | | Preliminary Total Risk-Based Capital Ratio | 14.66% | 14.58% | +0.08% | | - The increase in shareholders' equity was primarily due to **$11.3 million** in earnings and a decrease in accumulated other comprehensive loss on available-for-sale investment securities[23](index=23&type=chunk) [Dividend Declaration and Share Repurchases](index=5&type=section&id=Dividend%20Declaration%20and%20Share%20Repurchases) The Board of Directors declared a quarterly cash dividend of $0.29 per share, a 7% increase. The Company also repurchased 147,243 shares of common stock during the quarter, with additional shares remaining eligible under the repurchase plan | Metric | Q2 2025 | | :---------------------- | :-------- | | Quarterly Cash Dividend | $0.29/share | | Shares Repurchased | 147,243 | | Average Repurchase Price | $43.72/share | | Remaining Shares for Repurchase | 391,072 | | Metric | 6/30/2025 | 3/31/2025 | | :---------------------- | :-------- | :-------- | | Book Value Per Share | $52.36 | $50.82 | | Tangible Book Value Per Share | $41.54 | $40.13 | [Conference Call Information](index=6&type=section&id=Conference%20Call%20Information) Executive management will host a conference call on July 22, 2025, to discuss Q2 2025 results, with an investor presentation and replay available online [Conference Call Details](index=6&type=section&id=Conference%20Call%20Details) Executive management will host a conference call on July 22, 2025, at 10:30 a.m. CDT to discuss Q2 2025 results. An investor presentation and replay will be available on the Company's investor relations website - Conference call to discuss Q2 2025 results scheduled for Tuesday, July 22, 2025, at **10:30 a.m. CDT**[26](index=26&type=chunk) - Dial-in numbers: **1.646.357.8785** (US Local/International) or **1.800.836.8184** (US Toll Free)[26](index=26&type=chunk) - Investor presentation, conference call replay, and transcript will be available on https://home24bank.investorroom.com[26](index=26&type=chunk)[27](index=27&type=chunk) [Non-GAAP Financial Measures Reconciliation](index=6&type=section&id=Non-GAAP%20Financial%20Measures%20Reconciliation) This section reconciles non-GAAP financial measures, which management uses for performance analysis, to their GAAP equivalents, emphasizing they are not substitutes [Non-GAAP Reconciliation](index=6&type=section&id=Non-GAAP%20Reconciliation) The report includes non-GAAP financial information, which management uses to analyze performance and believes provides useful insights for investors. This information, which excludes intangible assets, is reconciled to GAAP figures - Non-GAAP financial information is used by management for performance analysis and is believed to provide a fuller understanding of the Company's financial position and operating results[28](index=28&type=chunk) - Non-GAAP measures presented exclude intangible assets and should not be considered a substitute for GAAP financial information[28](index=28&type=chunk) | Metric (in thousands, except per share data) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | | :------------------------------------------- | :-------- | :-------- | :--------- | :-------- | | Reported net income | $11,330 | $10,964 | $9,673 | $9,437 | | Non-GAAP tangible income | $11,543 | $11,195 | $9,923 | $9,696 | | Total assets | $3,491,455 | $3,485,453 | $3,443,668 | $3,441,990 | | Non-GAAP tangible assets | $3,406,973 | $3,400,702 | $3,358,624 | $3,356,629 | | Total shareholders' equity | $408,818 | $402,831 | $396,088 | $393,453 | | Non-GAAP tangible shareholders' equity | $324,336 | $318,080 | $311,044 | $308,092 | | Return on average equity | 11.24 % | 11.02 % | 9.71 % | 9.76 % | | Non-GAAP return on average tangible common equity | 14.48 % | 14.25 % | 12.70 % | 12.90 % | | Common equity ratio | 11.71 % | 11.56 % | 11.50 % | 11.43 % | | Non-GAAP tangible common equity ratio | 9.52 % | 9.35 % | 9.26 % | 9.18 % | | Book value per share | $52.36 | $50.82 | $48.95 | $48.75 | | Non-GAAP tangible book value per share | $41.54 | $40.13 | $38.44 | $38.17 | [Forward-Looking Statements](index=7&type=section&id=Forward-Looking%20Statements) This section provides a disclaimer for forward-looking statements, noting their inherent risks and the Company's lack of obligation to update them [Forward-Looking Statements Disclaimer](index=7&type=section&id=Forward-Looking%20Statements%20Disclaimer) This section provides a disclaimer regarding forward-looking statements, noting that they are subject to risks and uncertainties that could cause actual results to differ materially. The Company does not undertake to update these statements - Forward-looking statements are identified by words like 'believe,' 'expect,' 'anticipate,' and 'intend,' or future/conditional verbs[30](index=30&type=chunk) - Such statements are subject to risks and uncertainties, including those detailed in the Annual Report on Form 10-K, which could cause actual conditions or results to differ significantly[30](index=30&type=chunk) - The Company does not undertake to update forward-looking statements to reflect future circumstances or unanticipated events[30](index=30&type=chunk) [Financial Statements](index=8&type=section&id=Financial%20Statements) This section presents the Company's condensed financial statements, including balance sheets, income statements, and detailed credit quality and net interest margin data, reflecting overall financial health [Condensed Statements of Financial Condition](index=8&type=section&id=Condensed%20Statements%20of%20Financial%20Condition) The condensed statements of financial condition show a slight increase in total assets and shareholders' equity from Q1 2025 to Q2 2025, primarily driven by loan and deposit growth | Metric (in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :-------------------- | :---------- | :---------- | :---------- | :---------- | :---------- | | Total Assets | $3,491,455 | $3,485,453 | $3,443,668 | $3,441,990 | $3,410,881 | | Total Loans, net of ALLL | $2,731,106 | $2,713,999 | $2,685,269 | $2,636,008 | $2,629,134 | | Total Deposits | $2,908,234 | $2,827,207 | $2,780,696 | $2,777,487 | $2,722,915 | | Total Liabilities | $3,082,637 | $3,082,622 | $3,047,580 | $3,048,537 | $3,035,051 | | Total Shareholders' Equity | $408,818 | $402,831 | $396,088 | $393,453 | $375,830 | [Condensed Statements of Income](index=9&type=section&id=Condensed%20Statements%20of%20Income) The condensed statements of income show an increase in net income for Q2 2025 compared to Q1 2025 and Q2 2024, driven by higher net interest income despite increased provision for loan losses and noninterest expenses | Metric (in thousands, except per share data) | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :------------------------------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | Total interest income | $48,629 | $47,201 | $45,458 | $95,830 | $89,584 | | Total interest expense | $15,278 | $15,452 | $16,065 | $30,730 | $31,290 | | Net interest income | $33,351 | $31,749 | $29,393 | $65,100 | $58,294 | | Provision for loan losses | $489 | $394 | $1,261 | $883 | $1,402 | | Total noninterest income | $3,716 | $4,009 | $3,755 | $7,725 | $7,304 | | Total noninterest expense | $22,407 | $21,579 | $21,808 | $43,986 | $42,676 | | Income tax expense | $2,841 | $2,821 | $1,961 | $5,662 | $4,203 | | Net income | $11,330 | $10,964 | $8,118 | $22,294 | $17,317 | | Earnings per share - diluted | $1.45 | $1.37 | $1.02 | $2.82 | $2.16 | | Cash dividends declared per common share | $0.27 | $0.27 | $0.25 | $0.54 | $0.50 | [Summary Financial Information](index=10&type=section&id=Summary%20Financial%20Information) This section provides a summary of key earnings data, average balance sheet figures, per share data, and selected financial ratios, highlighting improvements in profitability and capital adequacy | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :---------------------- | :-------- | :-------- | :-------- | :-------- | :-------- | | **EARNINGS DATA (in thousands)** | | | | | | | Net income | $11,330 | $10,964 | $8,118 | $22,294 | $17,317 | | **AVERAGE BALANCE SHEET DATA (in thousands)** | | | | | | | Total assets | $3,474,762 | $3,449,472 | $3,367,207 | $3,462,187 | $3,350,545 | | Total loans | $2,764,065 | $2,745,212 | $2,652,331 | $2,754,691 | $2,627,636 | | Total deposits | $2,863,683 | $2,772,295 | $2,716,957 | $2,818,241 | $2,698,933 | | Total shareholders' equity | $404,367 | $403,504 | $373,139 | $403,938 | $371,950 | | **PER SHARE DATA** | | | | | | | Diluted EPS | $1.45 | $1.37 | $1.02 | $2.82 | $2.16 | | Book value at period end | $52.36 | $50.82 | $46.51 | $52.36 | $46.51 | | Tangible book value at period end | $41.54 | $40.13 | $35.90 | $41.54 | $35.90 | | **SELECTED RATIOS** | | | | | | | Return on average assets | 1.31 % | 1.29 % | 0.97 % | 1.30 % | 1.04 % | | Return on average equity | 11.24 % | 11.02 % | 8.75 % | 11.13 % | 9.36 % | | Net interest margin | 4.04 % | 3.91 % | 3.66 % | 3.98 % | 3.65 % | | Tangible common equity ratio | 9.52 % | 9.35 % | 8.73 % | 9.52 % | 8.73 % | | Return on average tangible common equity | 14.48 % | 14.25 % | 11.73 % | 14.37 % | 12.56 % | [Consolidated Net Interest Margin](index=12&type=section&id=Consolidated%20Net%20Interest%20Margin) The consolidated net interest margin improved for both the three and six months ended June 30, 2025, primarily due to increased yields on interest-earning assets and managed costs of interest-bearing liabilities **Three Months Ended:** | Metric (TE) | 6/30/2025 | 3/31/2025 | 6/30/2024 | | :------------------ | :-------- | :-------- | :-------- | | Average Yield on Interest-earning assets | 5.92 % | 5.84 % | 5.70 % | | Average Rate on Interest-bearing liabilities | 2.71 % | 2.74 % | 2.93 % | | Net interest spread | 3.21 % | 3.10 % | 2.77 % | | Net interest margin | 4.04 % | 3.91 % | 3.66 % | **Six Months Ended:** | Metric (TE) | 6/30/2025 | 6/30/2024 | | :------------------ | :-------- | :-------- | | Average Yield on Interest-earning assets | 5.88 % | 5.65 % | | Average Rate on Interest-bearing liabilities | 2.72 % | 2.86 % | | Net interest spread | 3.16 % | 2.79 % | | Net interest margin | 3.98 % | 3.65 % | - Loans receivable contributed significantly to interest income, with average yields of **6.50%** for Q2 2025 and **6.46%** for the six months ended June 30, 2025[39](index=39&type=chunk)[43](index=43&type=chunk) [Summary Credit Quality Information](index=14&type=section&id=Summary%20Credit%20Quality%20Information) This section details the Company's credit quality, showing an increase in nonperforming assets and loans, particularly nonaccrual loans. Despite this, the allowance for loan losses to total loans remained stable, and the allowance for credit losses provided strong coverage | Metric (in thousands) | 6/30/2025 | 3/31/2025 | 12/31/2024 | 9/30/2024 | 6/30/2024 | | :-------------------- | :-------- | :-------- | :--------- | :-------- | :-------- | | Total nonaccrual loans | $23,340 | $18,970 | $13,582 | $18,055 | $16,817 | | Total nonperforming loans | $23,352 | $19,047 | $13,598 | $18,089 | $16,818 | | Total nonperforming assets | $25,429 | $21,471 | $15,608 | $18,356 | $17,049 | | Nonperforming assets to total assets | 0.73 % | 0.62 % | 0.45 % | 0.53 % | 0.50 % | | Allowance for loan losses (Ending balance) | $33,432 | $33,278 | $32,916 | $32,278 | $32,212 | | Provision for loan losses | $489 | $394 | $873 | $140 | $1,261 | | Net charge-offs | $(335) | $(32) | $(235) | $(74) | $(510) | | Allowance for loan losses to total loans | 1.21 % | 1.21 % | 1.21 % | 1.21 % | 1.21 % | | Allowance for loan losses to nonperforming loans | 143.17 % | 174.72 % | 242.07 % | 178.44 % | 191.53 % | | Year-to-date net loan charge-offs | $(367) | $(32) | $(1,036) | $(801) | $(727) | - The allowance for unfunded lending commitments decreased to **$1.73 million** at June 30, 2025, due to a reversal for credit losses[46](index=46&type=chunk)

Core Viewpoint - Home Bancorp, Inc. (HBCP) has reached a significant support level and is considered a strong investment opportunity due to a recent technical indicator known as a "golden cross" [1] Technical Analysis - HBCP's 50-day simple moving average has recently crossed above its 200-day moving average, indicating a bullish breakout [1] - A golden cross is formed when a stock's short-term moving average surpasses a longer-term moving average, typically the 50-day and 200-day, which are seen as stronger indicators of future price movements [1][2] Performance Metrics - Over the past four weeks, HBCP has experienced a gain of 19.1% [3] - The stock currently holds a 1 (Strong Buy) rating on the Zacks Rank, suggesting it is well-positioned for further gains [3] Earnings Outlook - HBCP's earnings outlook is positive, with no earnings estimates cut and two revisions higher in the past 60 days [3] - The Zacks Consensus Estimate for HBCP has also increased, reinforcing the bullish sentiment [3][4] Investment Consideration - The combination of positive earnings estimate revisions and the technical breakout suggests that investors should monitor HBCP for potential gains in the near future [4]

Financial Performance - Net income for the three months ended March 31, 2025, was $10,964 thousand, up 19.2% from $9,199 thousand for the same period in 2024[12]. - Earnings per share (EPS) increased to $1.38 for the three months ended March 31, 2025, compared to $1.15 for the same period in 2024, representing a growth of 20%[12]. - Noninterest income for the three months ended March 31, 2025, was $4,009 thousand, a 13% increase from $3,549 thousand in the same period of 2024[12]. - Comprehensive income for the three months ended March 31, 2025, was $15,861 thousand, significantly higher than $7,080 thousand for the same period in 2024[14]. - Net cash provided by operating activities increased to $12,576,000, up from $10,323,000, reflecting a growth of 12.1% year-over-year[19]. Asset Growth - Total assets increased to $3,485,453 thousand as of March 31, 2025, compared to $3,443,668 thousand at December 31, 2024, reflecting a growth of 1.2%[10]. - Total loans, net of unearned income and allowance for loan losses, rose to $2,713,999 thousand as of March 31, 2025, from $2,685,269 thousand at December 31, 2024, an increase of 1.1%[10]. - Total deposits increased to $2,827,207 thousand as of March 31, 2025, from $2,780,696 thousand at December 31, 2024, marking a growth of 1.7%[10]. - Cash and cash equivalents at the end of the period were $110,662,000, up from $90,475,000 at the end of the same period last year[19]. Loan Portfolio - Total loans as of March 31, 2025, amounted to $2,747,277,000, an increase from $2,718,185,000 as of December 31, 2024, indicating a growth of 1.07%[41]. - The commercial real estate loans totaled $1,193,364,000 as of March 31, 2025, up from $1,158,781,000 at the end of 2024, indicating an increase of approximately 2.98%[45]. - One- to four-family first mortgage loans stood at $504,356,000 as of March 31, 2025, showing a slight increase from $501,225,000 at the end of 2024[45]. - The consumer loans increased to $29,998,000 as of March 31, 2025, from $29,624,000 at the end of 2024, representing a growth of about 1.26%[45]. Loan Loss Provisions - The provision for loan losses was $394 thousand for the three months ended March 31, 2025, compared to $141 thousand for the same period in 2024, indicating a significant increase in provisioning[12]. - The allowance for loan losses stood at $33,278 thousand as of March 31, 2025, compared to $32,916 thousand at December 31, 2024, indicating a slight increase[10]. - The allowance for credit losses (ACL) totaled $35,978,000 as of March 31, 2025, which includes $33,278,000 for loan losses and $2,700,000 for unfunded lending commitments[44]. - The provision for credit losses for the three months ended March 31, 2025, was $(226,000), while recoveries amounted to $194,000, leading to an ending balance of $35,978,000[48]. Dividend and Shareholder Returns - Cash dividends declared per common share increased to $0.27 for the three months ended March 31, 2025, compared to $0.25 for the same period in 2024, reflecting an 8% increase[12]. - The company paid $2,186,000 in dividends to shareholders, compared to $2,038,000 in the previous year[19]. Investment Securities - Total available for sale investment securities decreased in fair value to $400,553,000 as of March 31, 2025, from $402,792,000 at December 31, 2024[30]. - The effective duration of the company's investment securities portfolio was 3.7 years as of March 31, 2025, compared to 3.9 years at December 31, 2024[30]. - The total amortized cost of the Company's held-to-maturity securities was $1,065,000, with no ACL required as of March 31, 2025[35]. Derivative Instruments - The Company estimates that an additional $1,607,000 will be reclassified as interest expense over the next twelve months due to cash flow hedges[78]. - Accumulated unrealized gains on derivative instruments decreased from $2,418,000 to $1,775,000, a decline of 26.6%[83]. - The fair value of interest rate swaps designated as cash flow hedges was $2,411,000 as of March 31, 2025, down from $3,241,000 on December 31, 2024[81]. Nonperforming Loans - Nonaccrual loans totaled $18,970,000 as of March 31, 2025, compared to $13,582,000 as of December 31, 2024, indicating an increase of 39.5%[59]. - Total past due loans reached $24,474,000 as of March 31, 2025, up from $20,601,000 as of December 31, 2024, representing a 19.5% increase[56]. - The company reported $77,000 in loans greater than 90 days past due as of March 31, 2025, compared to $16,000 as of December 31, 2024[58].