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Financial Data and Key Metrics Changes - Fourth quarter net income was $11.4 million, or $1.46 per share, an 8% decrease from the prior quarter but a 21% increase year-over-year [6][2] - Full year 2025 net income reached $46 million, or $5.87 per share, a record for the company and 29% higher than 2024 earnings per share [2] - Fourth quarter net interest margin (NIM) was 4.06%, up 32 basis points year-over-year, while return on assets (ROA) increased to 1.29% [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, now representing 20% of the loan portfolio [5] - Non-performing loans increased in 2025, but charge-offs remained low, averaging about 6 basis points over the last six years [5][8] - Noninterest income was $4 million, slightly above expectations, with projections for future quarters to be between $3.8 million and $4 million [10] 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 [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] - Plans to open a new full-service branch in Houston and close a loan production office, indicating a commitment to expanding the Texas market [4] - The company is optimistic about M&A opportunities in 2026, with a focus on smaller deals that could be paid for in cash [33] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to meet high standards in various economic climates, despite some challenges in the credit environment [5] - There are no negative comments from customers in any markets, with a generally positive outlook as interest rates decrease [24] - Loan growth is expected to be in the mid-single digits for 2026, contingent on lower interest rates [45] Other Important Information - The company reduced its loan-to-deposit ratio to 92% from 98% a year ago, reflecting successful deposit attraction [4] - Noninterest expenses increased to $23 million, in line with expectations, with projections for further increases due to annual raises and new projects [11] Q&A Session Summary Question: Credit side and Class 5 NPAs trajectory - Management noted that some credits in Louisiana and Mississippi are taking longer to resolve, but they expect to see improvements in NPAs as properties are sold or refinanced [16][17] Question: Loan pipeline and portfolio shifts - Management indicated that while there were payoffs in 2025, they expect less of that in 2026, which could support loan growth [20][22] Question: SBA business growth potential - Management anticipates that the SBA business will improve with lower interest rates, although it may not see significant growth immediately [31] Question: M&A as a capital deployment priority - Management is optimistic about pursuing M&A opportunities in 2026, particularly for smaller banks, as their stock price improves [33] Question: Trajectory of NIM and rate sensitivity - Management expects NIM to potentially increase to 4.1%-4.15% throughout the year, despite some competitive pressures on deposit rates [48][50]

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].

Financial Performance - Net income for the three months ended September 30, 2025, was $12,357 thousand, up 30.5% from $9,437 thousand in the same period of 2024[12]. - Earnings per share (EPS) for the third quarter of 2025 was $1.60, an increase of 34.4% compared to $1.19 in the third quarter of 2024[12]. - Net income for the nine months ended September 30, 2025, was $34,651,000, an increase from $26,754,000 for the same period in 2024, representing a growth of approximately 29.4%[22]. - Comprehensive income for the three months ended September 30, 2025, was $14,959 thousand, compared to $19,499 thousand in the same period of 2024[15]. - Cash dividends declared per common share increased to $0.29 for the third quarter of 2025, up from $0.25 in the same quarter of 2024[12]. - Cash dividends declared increased to $0.83 per share in 2025, compared to $0.75 per share in 2024, reflecting a commitment to returning value to shareholders[19]. Asset and Deposit Growth - Total assets increased to $3,494,074 thousand as of September 30, 2025, compared to $3,443,668 thousand at December 31, 2024, reflecting a growth of 1.5%[10]. - Total deposits increased to $2,975,503 thousand as of September 30, 2025, up 7% from $2,780,696 thousand at December 31, 2024[10]. - Total cash and cash equivalents at the end of September 30, 2025, were $189,324,000, up from $135,877,000 at the end of September 30, 2024, indicating a significant increase in liquidity[22]. - The balance of retained earnings as of September 30, 2025, was $275,912,000, an increase from $251,692,000 as of September 30, 2024, indicating growth in shareholder equity[19]. Loan and Credit Quality - The total loans as of September 30, 2025, were $2,705,895,000, a slight decrease from $2,718,185,000 as of December 31, 2024[47]. - The allowance for loan losses decreased slightly to $32,827 thousand from $32,916 thousand, indicating a stable credit quality[10]. - The company reported a provision for loan losses of $654,000 for the nine months ended September 30, 2025, down from $1,542,000 in the same period of 2024, suggesting improved asset quality[22]. - Nonaccrual loans totaled $28,948,000 as of September 30, 2025, compared to $13,582,000 on December 31, 2024, indicating a significant rise[65]. - Total past due loans reached $31,879,000 as of September 30, 2025, up from $20,601,000 on December 31, 2024, marking a 54.8% increase[62]. Investment Securities - The Company reported total available for sale investment securities of $383,340,000 as of September 30, 2025, down from $402,792,000 as of December 31, 2024, representing a decrease of approximately 4.8%[34]. - The effective duration of the Company's investment securities portfolio was 3.5 years as of September 30, 2025, compared to 3.9 years as of December 31, 2024[35]. - The Company’s U.S. agency mortgage-backed securities had an amortized cost of $277,168,000 and a fair value of $257,870,000 as of September 30, 2025, indicating an unrealized loss of $19,629,000[34]. - The total financial assets carried at fair value on a recurring basis were $385,126 as of September 30, 2025, compared to $406,059 as of December 31, 2024, showing a decrease of 5.2%[113][114]. Derivative Instruments and Debt - The Company issued $55,000,000 in subordinated debt on June 30, 2022, with a fixed interest rate of 5.75% until June 30, 2027[100]. - Interest rate swaps recognized a gain of $120,000 in Other Comprehensive Income (OCI) for the three months ended September 30, 2025, with $514,000 reclassified into income[92]. - The maximum term extensions for one-to four-family first mortgages were 60 months for the nine months ended September 30, 2025[78]. - The carrying value of the 5.75% Fixed-to-Floating Rate Subordinated Notes was $54,621,000 at September 30, 2025, slightly up from $54,459,000 at December 31, 2024[101].

Core Viewpoint - Home Bancorp (HBCP) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive outlook on its earnings estimates, which is a significant factor influencing stock prices [1][2]. Earnings Estimates and Stock Price Impact - The Zacks rating system emphasizes the importance of changing earnings estimates, which are strongly correlated with near-term stock price movements [3][5]. - Institutional investors utilize earnings estimates to determine the fair value of stocks, leading to buying or selling actions that affect stock prices [3]. Home Bancorp's Earnings Outlook - The recent upgrade for Home Bancorp reflects an improvement in its underlying business, supported by rising earnings estimates [4]. - For the fiscal year ending December 2025, Home Bancorp is expected to earn $5.74 per share, with a 3.7% increase in the Zacks Consensus Estimate over the past three months [7]. Zacks Rank System - The Zacks Rank system classifies stocks based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [6]. - Home Bancorp's upgrade to Zacks Rank 2 places it in the top 20% of Zacks-covered stocks, indicating strong potential for market-beating returns in the near term [9].

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