HOME BANCORP ANNOUNCES 2025 FOURTH QUARTER RESULTS AND DECLARES A QUARTERLY DIVIDEND
LAFAYETTE, La., Jan. 26, 2026 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq: "HBCP") (the "Company"), the parent company for Home Bank, N.A. (the "Bank") (www.home24bank.com), reported financial results for the fourth quarter of 2025. For the quarter, the Company reported net income of $11.4 million, or $1.46 per diluted common share ("diluted EPS"), down $946,000, or 8%, from $12.4 million, or $1.59 diluted EPS, for the third quarter of 2025.
"We are pleased with our overall fourth quarter and full year results," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "During the fourth quarter, loan production increased and core deposits grew. Nonperforming assets increased for the quarter, but we do not anticipate any material losses. The net interest margin decreased to 4.06% for the quarter primarily due to lower loan yield and our ability to manage lower funding cost. The majority of our Certificates of Deposit will reprice within 120 days, which should continue to reduce deposit costs and have a positive impact on NIM. We remain well positioned to assist our customers with opportunities in the new year."
Fourth Quarter 2025 Highlights
Loans totaled $2.7 billion at December 31, 2025, up $38.1 million, or 1%, (an increase of 6% on an annualized basis), from September 30, 2025.
Deposits totaled $3.0 billion at December 31, 2025, down $2.7 million, or less than 1% for the quarter and on an annualized basis, from September 30, 2025. Core deposits increased $24.5 million, or 1% during the fourth quarter of 2025 to $2.2 billion (an increase of 5% on an annualized basis).
Net interest income in the fourth quarter of 2025 totaled $34.0 million, down $58,000, or less than 1%, from the prior quarter.
The net interest margin ("NIM") decreased 4 basis points from 4.10% for the third quarter of 2025 to 4.06% in the fourth quarter of 2025 primarily due to lower yield on interest-earning assets, partially offset by lower funding cost.
Nonperforming assets totaled $36.1 million, or 1.03% of total assets, at December 31, 2025, up $5.2 million, or 17%, from September 30, 2025, primarily due to two loan relationships which were moved to nonaccrual status, partially offset by paydowns in the fourth quarter of 2025.
The Company recorded a $480,000 provision to the allowance for loan losses in the fourth quarter of 2025, compared to a $229,000 reversal to provision in the third quarter of 2025, primarily due to loan growth.
Net loan charge-offs were $165,000 for the fourth quarter of 2025, compared to net loan charge-offs of $376,000 during the third quarter of 2025. Year-to-date net loan charge-offs to average loans was 0.03% for the year ended December 31, 2025.
Loans
Loans totaled $2.7 billion at December 31, 2025, up $38.1 million, or 1%, from September 30, 2025. The following table summarizes the changes in the Company's loan portfolio from September 30, 2025 to December 31, 2025.
December 31,
September 30,
Increase (Decrease)
(dollars in thousands)
2025
2025
Amount
Percent
Real estate loans:
One- to four-family first mortgage
$ 493,446
$ 490,600
$ 2,846
1 %
Home equity loans and lines
92,574
86,885
5,689
7
Commercial real estate
1,190,388
1,175,384
15,004
1
Construction and land
329,227
325,725
3,502
1
Multi-family residential
177,825
184,022
(6,197)
(3)
Total real estate loans
2,283,460
2,262,616
20,844
1
Other loans:
Commercial and industrial
430,517
413,590
16,927
4
Consumer
30,046
29,689
357
1
Total other loans
460,563
443,279
17,284
4
Total loans
$ 2,744,023
$ 2,705,895
$ 38,128
1 %
The average loan yield was 6.44% for the fourth quarter of 2025, down 9 basis points from the third quarter of 2025. The average loan yield began to decline in mid-September 2025 following the Federal Reserve rate cuts. Commercial and industrial and commercial real estate loans were the primary drivers for the loan growth during the fourth quarter of 2025. We experienced growth across most of our markets, primarily within our New Orleans and Acadiana markets.
Credit Quality and Allowance for Loan Losses
Nonperforming assets ("NPAs") totaled $36.1 million, or 1.03% of total assets at December 31, 2025, up $5.2 million, or 17%, from $30.9 million, or 0.88% of total assets, at September 30, 2025. The increase in NPAs during the fourth quarter of 2025 was primarily due to two loan relationships totaling $5.7 million, which were put on nonaccrual during the quarter, partially offset by payoffs and paydowns. The Company recorded net loan charge-offs of $165,000 during the fourth quarter of 2025, compared to net loan charge-offs of $376,000 during the third quarter of 2025.
The Company made a $480,000 provision to the allowance for loan losses in the fourth quarter of 2025 primarily due to loan growth. For the year ended December 31, 2025, provisions to the allowance for loan losses totaled $1.1 million. At December 31, 2025, the allowance for loan losses totaled $33.1 million, or 1.21% of total loans, compared to $32.8 million, or 1.21% of total loans, at September 30, 2025. Changes in expected losses are based on various factors, including the changing economic activity, borrower specific information impacting changes in risk ratings, projected delinquencies and the impact of industry-wide loan modification efforts, among other factors.
The following tables present the Company's loan portfolio by credit quality classification as of December 31, 2025 and September 30, 2025.
December 31, 2025
(dollars in thousands)
Pass
Special Mention
Substandard
Total
One- to four-family first mortgage
$ 486,453
$ ,
$ 6,993
$ 493,446
Home equity loans and lines
91,232
811
531
92,574
Commercial real estate
1,155,097
2,947
32,344
1,190,388
Construction and land
312,994
866
15,367
329,227
Multi-family residential
176,227
—
1,598
177,825
Commercial and industrial
426,265
—
4,252
430,517
Consumer
30,000
—
46
30,046
Total
$ 2,678,268
$ 4,624
$ 61,131
$ 2,744,023
September 30, 2025
(dollars in thousands)
Pass
Special Mention
Substandard
Total
One- to four-family first mortgage
$ 483,737
$ ,
$ 6,863
$ 490,600
Home equity loans and lines
85,877
—
1,008
86,885
Commercial real estate
1,140,742
3,067
31,575
1,175,384
Construction and land
314,986
892
9,847
325,725
Multi-family residential
182,731
—
1,291
184,022
Commercial and industrial
406,591
—
6,999
413,590
Consumer
29,629
—
60
29,689
Total
$ 2,644,293
$ 3,959
$ 57,643
$ 2,705,895
Investment Securities
The Company's investment securities portfolio totaled $392.5 million at December 31, 2025, an increase of $8.1 million, or 2%, from September 30, 2025. At December 31, 2025, the Company had a net unrealized loss position on its investment securities of $23.4 million, compared to a net unrealized loss of $26.5 million at September 30, 2025. The Company's investment securities portfolio had an effective duration of 3.3 years and 3.5 years at December 31, 2025 and September 30, 2025, respectively. The Company made securities purchases of $14.4 million during the fourth quarter of 2025, compared to $4.3 million during third quarter of 2025. The Company had no securities sales during the year ended December 31, 2025.
The following table summarizes the composition of the Company's investment securities portfolio at December 31, 2025.
(dollars in thousands)
AmortizedCost
Fair Value
Available for sale:
U.S. agency mortgage-backed
$ 284,749
$ 267,650
Collateralized mortgage obligations
61,185
60,327
Municipal bonds
53,018
48,147
U.S. government agency
11,441
11,003
Corporate bonds
4,491
4,321
Total available for sale
$ 414,884
$ 391,448
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 as of December 31, 2025 to secure public deposits. As of December 31, 2025 and September 30, 2025, the Company had $140.1 million and $140.2 million, respectively, of securities pledged to secure public deposits.
Deposits
Total deposits were $3.0 billion at December 31, 2025, down $2.7 million, or less than 1%, from September 30, 2025. Non-maturity deposits increased $24.5 million, or 1%, during the fourth quarter of 2025 to $2.2 billion. The following table summarizes the changes in the Company's deposits from September 30, 2025 to December 31, 2025.
December 31,
September 30,
Increase/(Decrease)
(dollars in thousands)
2025
2025
Amount
Percent
Demand deposits
$ 792,951
$ 801,974
$ (9,023)
(1) %
Savings
201,265
200,135
1,130
1
Money market
518,740
499,404
19,336
4
NOW
654,227
641,204
13,023
2
Certificates of deposit
805,623
832,786
(27,163)
(3)
Total deposits
$ 2,972,806
$ 2,975,503
$ (2,697)
— %
The average rate on interest-bearing deposits decreased 6 basis points from 2.57% for the third quarter of 2025 to 2.51% for the fourth quarter of 2025. At December 31, 2025, certificates of deposit maturing within the next 12 months totaled $781.2 million, or 97% of total certificates of deposit.
We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.
December 31, 2025
September 30, 2025
Individuals
52 %
52 %
Small businesses
39
39
Public funds
6
6
Broker
3
3
Total
100 %
100 %
The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $885.4 million at December 31, 2025 and $894.8 million at September 30, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.
Net Interest Income
The net interest margin ("NIM") decreased 4 basis points from 4.10% for the third quarter of 2025 to 4.06% for the fourth quarter of 2025 primarily due to lower yield on interest-earning assets, which was offset with lower funding cost for average interest-bearing liabilities.
Average other interest-earning assets were $163.1 million for the fourth quarter of 2025, up $63.4 million, or 64%, from the third quarter of 2025 primarily due to an increase in the average balance of cash and cash equivalents.
The average rate paid on total interest-bearing deposits was 2.51% for the fourth quarter of 2025, down 6 basis points from the third quarter of 2025, due to the lower funding cost. The average rate paid on certificate of deposits was 3.83% for the fourth quarter of 2025, down 2 basis points from the third quarter of 2025.
Average FHLB advances were $3.0 million for the fourth quarter of 2025, a decrease of $36.4 million, or 92%, from the third quarter of 2025 due to paydowns of FHLB advances.
Loan accretion income from acquired loans totaled $242,000 for the fourth quarter of 2025, down $105,000, or 30%, compared to the third quarter of 2025.
Noninterest Income
Noninterest income for the fourth quarter of 2025 totaled $4.0 million, up $260,000, or 7%, from the third quarter of 2025. The increase was related primarily to increases in other income (up $174,000), gains on sale of loans (up $81,000) and service fees and charges (up $30,000), which were partially offset by decreases in bank card fees (down $22,000) for the fourth quarter of 2025 compared to the third quarter of 2025.
Noninterest Expense
Noninterest expense for the fourth quarter of 2025 totaled $23.0 million, up $515,000, or 2%, compared to the third quarter of 2025. The increase was primarily due to increases in other noninterest expense (up $637,000) and compensation and benefits (up $443,000), which were partially offset by decreases in foreclosed assets, net (down $323,000), occupancy expense (down $138,000) and a reversal to the allowance for credit losses on unfunded commitments (down $105,000) for the fourth quarter of 2025 compared to the third quarter of 2025.
Capital and Liquidity
At December 31, 2025, shareholders' equity totaled $435.1 million, up $12.1 million, or 3%, compared to $423.0 million at September 30, 2025. The increase was primarily due to the Company's earnings of $11.4 million and a decrease in the accumulated other comprehensive loss on available for sale investment securities during the fourth quarter of 2025, which were partially offset by shareholders' dividends. The market value of the Company's available for sale securities at December 31, 2025 increased $3.1 million, or 12%, during the fourth quarter of 2025. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.84% and 15.29%, respectively, at December 31, 2025, compared to 11.80% and 15.24%, respectively, at September 30, 2025.
Dividend and Share Repurchases
The Company announced that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.31 per share (unchanged from the previous quarterly cash dividend) payable on February 20, 2026, to shareholders of record as of February 9, 2026.
The Company repurchased 750 shares of its common stock during the fourth quarter of 2025 at an average price per share of $59.97. At December 31, 2025, an additional 390,222 shares remain eligible for purchase under the 2025 Repurchase Plan. The book value per share and tangible book value per share of the Company's common stock was $55.56 and $44.84, respectively, at December 31, 2025.
Conference Call
Executive management will host a conference call to discuss fourth quarter 2025 results on Tuesday, January 27, 2026 at 10:30 a.m. CDT. Analysts, investors and interested parties may attend the conference call by dialing toll free 1.646.357.8785 (US Local/International) or 1.800.836.8184 (US Toll Free). The investor presentation can be accessed the day of the presentation on the Home Bancorp, Inc. website at https://home24bank.investorroom.com.
A replay of the conference call and a transcript of the call will be posted to the Investor Relations page of the Company's website, https://home24bank.investorroom.com.
Non-GAAP Reconciliation
This news release contains financial information determined by methods other than in accordance with generally accepted accounting principles ("GAAP"). The Company's management uses this non-GAAP financial information in its analysis of the Company's performance. In this news release, information is included which excludes intangible assets. Management believes the presentation of this non-GAAP financial information provides useful information that is helpful to a full understanding of the Company's financial position and operating results. This non-GAAP financial information should not be viewed as a substitute for financial information determined in accordance with GAAP, nor is it necessarily comparable to non-GAAP financial information presented by other companies. A reconciliation of non-GAAP information included herein to GAAP is presented below.
Quarter Ended
(dollars in thousands, except per share data)
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
Reported net income
$ 11,411
$ 12,357
$ 11,330
$ 10,964
$ 9,673
Add: Core deposit intangible amortization, net tax
203
212
213
231
250
Non-GAAP tangible income
$ 11,614
$ 12,569
$ 11,543
$ 11,195
$ 9,923
Total assets
$ 3,492,626
$ 3,494,074
$ 3,491,455
$ 3,485,453
$ 3,443,668
Less: Intangible assets
83,957
84,214
84,482
84,751
85,044
Non-GAAP tangible assets
$ 3,408,669
$ 3,409,860
$ 3,406,973
$ 3,400,702
$ 3,358,624
Total shareholders' equity
$ 435,094
$ 423,044
$ 408,818
$ 402,831
$ 396,088
Less: Intangible assets
83,957
84,214
84,482
84,751
85,044
Non-GAAP tangible shareholders' equity
$ 351,137
$ 338,830
$ 324,336
$ 318,080
$ 311,044
Return on average equity
10.52 %
11.78 %
11.24 %
11.02 %
9.71 %
Add: Average intangible assets
2.79
3.24
3.24
3.23
2.99
Non-GAAP return on average tangible common equity
13.31 %
15.02 %
14.48 %
14.25 %
12.70 %
Common equity ratio
12.46 %
12.11 %
11.71 %
11.56 %
11.50 %
Less: Intangible assets
2.16
2.17
2.19
2.21
2.24
Non-GAAP tangible common equity ratio
10.30 %
9.94 %
9.52 %
9.35 %
9.26 %
Book value per share
$ 55.56
$ 54.05
$ 52.36
$ 50.82
$ 48.95
Less: Intangible assets
10.72
10.76
10.82
10.69
10.51
Non-GAAP tangible book value per share
$ 44.84
$ 43.29
$ 41.54
$ 40.13
$ 38.44
This news release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may."
Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond our control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2024, describes some of these factors, including risk elements in the loan portfolio, risks related to our deposit actives, the level of the allowance for credit losses, risks of our growth strategy, geographic concentration of our business, dependence on our management team, risks of market rates of interest and of regulation on our business and risks of competition. Forward-looking statements speak only as of the date they are made. We do not undertake to update forward-looking statements to reflect circumstances or events that occur after the date the forward-looking statements are made or to reflect the occurrence of unanticipated events.
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(dollars in thousands)
12/31/2025
9/30/2025
6/30/2025
3/31/2025
12/31/2024
Assets
