HOME BANCORP, INC. ANNOUNCES 2025 SECOND QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 7%

 Second Quarter 2025 Highlights

• Loans totaled $2.8 billion at June 30, 2025, up $17.3 million, or 0.6% (an increase of 3% on an annualized basis), from March 31, 2025.
• Deposits totaled $2.9 billion at June 30, 2025, up $81.0 million, or 2.9% (11% on an annualized basis), from March 31, 2025.
• Net interest income in the second quarter of 2025 totaled $33.4 million, up $1.6 million, or 5%, from the prior quarter.
• The net interest margin ("NIM") was 4.04% in the second quarter of 2025 compared to 3.91% in the first quarter of 2025.
• Nonperforming assets totaled $25.4 million, or 0.73% of total assets, at June 30, 2025 compared to $21.5 million, or 0.62% of total assets, at March 31, 2025. This increase in nonperforming assets is primarily due to four loan relationships, which were moved to nonaccrual status in the second quarter of 2025.
• The Company recorded a $489,000 provision to the allowance for loan losses in the second quarter of 2025, compared to a $394,000 provision in the first quarter of 2025, primarily due to loan growth.

Loans

Loans totaled $2.8 billion at June 30, 2025, up $17.3 million, or 0.6%, from March 31, 2025. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from March 31, 2025 through June 30, 2025.

The average loan yield was 6.50% for the second quarter of 2025, up 7 basis points from the first quarter of 2025. Yields on loans were impacted by higher rates on new loans and loans paying off at lower rates. We experienced growth in commercial real estate loans, which was partially offset by declines in construction and land loans for the current quarter, primarily in our Houston and New Orleans markets, and in commercial and industrial loans across our Acadiana, Baton Rouge, and Houston markets.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $25.4 million, or 0.73% of total assets, at June 30, 2025, up $4.0 million, or 18%, from $21.5 million, or 0.62% of total assets, at March 31, 2025. The increase in NPAs during the second quarter of 2025 was primarily due to four loan relationships totaling $6.2 million, which were put on nonaccrual during the quarter, offset by payoffs and paydowns. During the second quarter of 2025, the Company recorded net loan charge-offs of $335,000, compared to net loan charge-offs of $32,000 during the first quarter of 2025.

The Company provisioned $489,000 to the allowance for loan losses in the second quarter of 2025. At June 30, 2025, the allowance for loan losses totaled $33.4 million, or 1.21% of total loans, compared to $33.3 million, or 1.21% of total loans, at March 31, 2025. Provisions to the allowance for loan losses are based upon, among other factors, our estimation of current expected losses in our loan portfolio, which we evaluate on a quarterly basis. Changes in expected losses consider 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 June 30, 2025 and March 31, 2025.

Investment Securities

The Company's investment securities portfolio totaled $394.5 million at June 30, 2025, a decrease of $7.1 million, or 2%, from March 31, 2025. At June 30, 2025, the Company had a net unrealized loss position on its investment securities of $30.2 million, compared to a net unrealized loss of $34.0 million at March 31, 2025. The Company's investment securities portfolio had an effective duration of 3.6 years and 3.7 years at June 30, 2025 and March 31, 2025, respectively. During the second quarter of 2025, the Company made securities purchases of $4.5 million, compared to $2.9 million during the first quarter of 2025.

The following table summarizes the composition of the Company's investment securities portfolio at June 30, 2025.

Approximately 36% of the investment securities portfolio was pledged as of June 30, 2025 to secure public deposits. The Company had $141.7 million and $142.0 million of securities pledged to secure public deposits at June 30, 2025 and March 31, 2025, respectively.

Deposits

Total deposits were $2.9 billion at June 30, 2025, up $81.0 million, or 3%, from March 31, 2025. Non-maturity deposits increased $17.2 million, or 1%, during the second quarter of 2025 to $2.1 billion. The following table summarizes the changes in the Company's deposits from March 31, 2025 to June 30, 2025.

The average rate on interest-bearing deposits increased 1 basis point from 2.51% for the first quarter of 2025 to 2.52% for the second quarter of 2025. At June 30, 2025, certificates of deposit maturing within the next 12 months totaled $781.9 million.

We obtain most of our deposits from individuals, small businesses and public funds in our market areas. The following table presents our deposits per customer type for the periods indicated.

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $887.9 million at June 30, 2025 and $844.2 million at March 31, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

The net interest margin ("NIM") increased 13 basis points from 3.91% for the first quarter of 2025 to 4.04% for the second quarter of 2025 primarily due to an increase in average yield on interest-earnings assets and a decline in the average cost for average interest-bearing liabilities.

The average cost of interest-bearing deposits increased by 1 basis point in the second quarter of 2025 compared to the first quarter of 2025. The increase in deposit costs primarily reflects the increase in non-maturity deposit balances.

Average other interest-earning assets were $71.1 million for the second quarter of 2025, up $15.2 million, or 27%, from the first quarter of 2025, primarily due to an increase in the average balance of cash and cash equivalents.

Average FHLB advances were $114.0 million for the second quarter of 2025, a decrease of $66.6 million, or 37%, from the first quarter of 2025 due to paydowns of FHLB advances.

Loan accretion income from acquired loans totaled $356,000 for the second quarter of 2025, which remained unchanged from the first quarter of 2025.

Noninterest Income

Noninterest income for the second quarter of 2025 totaled $3.7 million, down $293,000, or 7%, from the first quarter of 2025. The decrease was related primarily to decreases in gain on sale of loans (down $263,000) and other income (down $231,000), which were partially offset by increases in bank card fees (up $172,000) and service fees and charges (up $36,000) for the second quarter of 2025 compared to the first quarter of 2025.

Noninterest Expense

Noninterest expense for the second quarter of 2025 totaled $22.4 million, up $828,000, or 4%, from the first quarter of 2025. The increase was primarily related to an increase in other expenses (up $1.0 million primarily due to a write off of an acquired SBA accounts receivable for guarantees) and compensation and benefits expense (up $670,000), which were partially offset by the reversal to the allowance for credit losses on unfunded commitments ($970,000)  during the second quarter of 2025.

Capital

At June 30, 2025, shareholders' equity totaled $408.8 million, up $6.0 million, or 1%, compared to $402.8 million at March 31, 2025. The increase was primarily due to the Company's earnings of $11.3 million and a decrease in the accumulated other comprehensive loss on available for sale investment securities during the second quarter of 2025, which was partially offset by shareholder dividends and repurchases of shares of the Company's common stock. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 11.47% and 14.66%, respectively, at June 30, 2025, compared to 11.48% and 14.58%, respectively, at March 31, 2025.

Dividend and Share Repurchases

The Company announces that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.29 per share payable on August 15, 2025, to shareholders of record as of August 4, 2025.

The Company repurchased 147,243 shares of its common stock during the second quarter of 2025 at an average price per share of $43.72. An additional 391,072 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 $52.36 and $41.54, respectively, at June 30, 2025.

Conference Call

Executive management will host a conference call to discuss second quarter 2025 results on Tuesday, July 22, 2025 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 on 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 on non-GAAP information included herein to GAAP is presented below.

This news release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include the words "believe," "expect," "anticipate," "intend," "plan," "estimate" or words of similar meaning, or future or conditional verbs such as "will," "would," "should," "could" or "may."

Forward-looking statements, by their nature, are subject to risks and uncertainties. A number of factors - many of which are beyond our control - could cause actual conditions, events or results to differ significantly from those described in the forward-looking statements. Home Bancorp's Annual Report on Form 10-K for the year ended December 31, 2024 describes some of these factors, including risk elements in the loan portfolio, risks related to our deposit activities, 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.