HOME BANCORP, INC. ANNOUNCES 2026 FIRST QUARTER RESULTS AND DECLARES A QUARTERLY DIVIDEND

LAFAYETTE, La., April 20, 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 first quarter of 2026. For the quarter, the Company reported net income of $11.4 million, or $1.45 per diluted common share ("diluted EPS"), down $51,000 from $11.4 million, or $1.46 diluted EPS, for the fourth quarter of 2025.

"In March 2026, we opened our newest full-service location in Tomball, TX," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "We are pleased with our financial results for the first quarter. While loan production remained down during the quarter, deposit growth increased and reduced our loan to deposit ratio to 90%. Financial metrics remained strong with ROA increasing to 1.30% and a ten-basis point NIM expansion to 4.16% for the quarter. Credit metrics reflect an increase in nonperforming and criticized loans during the quarter, but we do not anticipate material losses. We remain focused on proactively identifying and resolving problem loans as quickly as possible. We are confident that our teams have the ability to broaden meaningful relationships with our customers across all our markets throughout the remainder of the year."

First Quarter 2026 Highlights

Loans

Loans totaled $2.7 billion at March 31, 2026, down $15.9 million, or 0.6%, from December 31, 2025. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from December 31, 2025 through March 31, 2026.

The average loan yield was 6.41% for the first quarter of 2026, down 3 basis points from the fourth quarter of 2025. The decrease on loan yields was driven by Federal Reserve rate cuts in mid-December 2025, which impacted the full quarter in 2026. We experienced a slow down in loan production, resulting in loan reduction across most of our markets during the first quarter of 2026.

Credit Quality and Allowance for Credit Losses

Nonperforming assets ("NPAs") totaled $39.9 million, or 1.12% of total assets, at March 31, 2026, up $3.8 million, or 11%, from $36.1 million, or 1.03% of total assets, at December 31, 2025. The increase in NPAs during the first quarter of 2026 was primarily due to multiple loan relationships (with the largest relationship totaling $1.4 million) which were put on nonaccrual during the quarter, offset by payoffs and paydowns. During the first quarter of 2026, the Company recorded net loan charge-offs of $384,000, compared to net loan charge-offs of $165,000 during the fourth quarter of 2025.

The Company provisioned $922,000 to the allowance for loan losses in the first quarter of 2026. At March 31, 2026, the allowance for loan losses totaled $33.7 million, or 1.23% of total loans, compared to $33.1 million, or 1.21% of total loans, at December 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 March 31, 2026 and December 31, 2025.

Investment Securities

The Company's investment securities portfolio totaled $386.3 million at March 31, 2026, a decrease of $6.3 million, or 2%, from December 31, 2025. At March 31, 2026, the Company had a net unrealized loss position on its investment securities of $24.0 million, compared to a net unrealized loss of $23.4 million at December 31, 2025. The Company's investment securities portfolio had an effective duration of 3.4 years and 3.3 years at March 31, 2026 and December 31, 2025, respectively. During the first quarter of 2026, the Company made securities purchases of $21.5 million, compared to $14.4 million during the fourth quarter of 2025. The Company had no securities sales during the first quarter of 2026 and fourth quarter of 2025.

The following table summarizes the composition of the Company's investment securities portfolio at March 31, 2026.

Approximately 36% of the investment securities portfolio was pledged as of March 31, 2026 to secure public deposits. The Company had $139.9 million and $140.1 million of securities pledged to secure public deposits at March 31, 2026 and December 31, 2025, respectively.

Deposits

Total deposits were $3.0 billion at March 31, 2026, up $54.0 million, or 2%, from December 31, 2025. Core deposits or non-maturity deposits increased $118.1 million, or 5%, during the first quarter of 2026 to $2.3 billion. The following table summarizes the changes in the Company's deposits from December 31, 2025 to March 31, 2026.

The average rate on interest-bearing deposits decreased 22 basis points from 2.51% for the fourth quarter of 2025 to 2.29% for the first quarter of 2026. At March 31, 2026, certificates of deposit maturing within the next 12 months totaled $715.3 million, or 96%, 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.

The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $919.7 million at March 31, 2026 and $885.4 million at December 31, 2025. Public funds in excess of the FDIC insurance limits are fully collateralized.

Net Interest Income

NIM increased 10 basis points from 4.06% for the fourth quarter of 2025 to 4.16% for the first quarter of 2026, primarily due to lower funding cost for average interest-bearing liabilities.

The average cost of interest-bearing deposits decreased by 22 basis points in the first quarter of 2026 compared to the fourth quarter of 2025, primarily due to the lower funding cost. The decrease in funding costs was primarily due to a shift in the mix of average balance of interest-bearing deposits. 

Average other interest-earning assets were $168.7 million for the first quarter of 2026, up $5.7 million, or 3%, from the fourth quarter of 2025, primarily due to an increase in the average balance of cash and cash equivalents. The average yield on other interest-earning assets (primarily funds held at the Federal Reserve) decreased 48 basis points in the first quarter of 2026 compared to the fourth quarter of 2025 due to lower interest rates during the quarter.

Average FHLB advances were $1.9 million for the first quarter of 2026, a decrease of $1.1 million, or 37%, from the fourth quarter of 2025 due to paydowns of FHLB advances.

Loan accretion income from acquired loans totaled $189,000 for the first quarter of 2026, down $53,000, or 22%, from the fourth quarter of 2025.

Noninterest Income

Noninterest income for the first quarter of 2026 totaled $3.7 million, down $260,000, or 7%, from the fourth quarter of 2025. The decrease was related primarily to decreases in other income (down $234,000) and bank card fees (down $30,000), which were partially offset by an increase in gain on sale of loans (up $5,000) for the first quarter of 2026 compared to the fourth quarter of 2025.

Noninterest Expense

Noninterest expense for the first quarter of 2026 totaled $22.9 million, down $106,000, or less than 1%, from the fourth quarter of 2025. The decrease was primarily related to decreases in compensation and benefits expense (down $260,000) and franchise and shares tax expense (down $94,000), which were partially offset by the absence of a reversal to the allowance for credit losses on unfunded commitments ($105,000), increases in other expenses (up $102,000) and data processing and communications expense (up $81,000) during the first quarter of 2026.

Capital

At March 31, 2026, shareholders' equity totaled $444.4 million, up $9.3 million, or 2%, compared to $435.1 million at December 31, 2025. The increase was primarily due to the Company's earnings of $11.4 million, which was partially offset by an increase in the accumulated other comprehensive loss on available for sale investment securities during the first quarter of 2026 and shareholder dividends. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 12.11% and 15.65%, respectively, at March 31, 2026, compared to 11.84% and 15.29%, respectively, at December 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 $0.31 per share payable on May 15, 2026, to shareholders of record as of May 4, 2026.

The Company repurchased 4,332 shares of its common stock during the first quarter of 2026 at an average price per share of $58.00. An additional 385,890 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 $56.73 and $46.04, respectively, at March 31, 2026.

Conference Call

Executive management will host a conference call to discuss first quarter 2026 results on Tuesday, April 21, 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 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, 2025 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.

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SOURCE Home Bancorp, Inc.