HOME BANCORP, INC. ANNOUNCES 2025 SECOND QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 7%
LAFAYETTE, La., July 21, 2025 /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 second quarter of 2025. For the quarter, the Company reported net income of $11.3 million, or $1.45 per diluted common share ("diluted EPS"), up $366,000 from $11.0 million, or $1.37 diluted EPS, for the first quarter of 2025.
"As we celebrate the Bank's 117th anniversary, I'm pleased with the strong results produced during the second quarter of 2025," said John W. Bordelon, President and Chief Executive Officer of the Company and the Bank. "We saw growth in loans and deposits and net interest margin continued its upward trajectory as we were able to keep deposit and funding costs stable. We saw increases in nonperforming and criticized loans at the end of the quarter, but do not anticipate any losses. We have maintained a solid allowance for loan losses to total loans of 1.21%. Our Company remains well-positioned for the future with strong capital and liquidity combined with outstanding bankers."
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.
(dollars in thousands)
6/30/2025
3/31/2025
Increase (Decrease)
Real estate loans:
One- to four-family first mortgage
$ 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 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.
June 30, 2025
(dollars in thousands)
Pass
Special Mention
Substandard
Total
One- to four-family first mortgage
$ 497,404
$ ,
$ 6,741
$ 504,145
Home equity loans and lines
80,145
—
1,033
81,178
Commercial real estate
1,185,738
1,063
31,367
1,218,168
Construction and land
317,593
749
6,232
324,574
Multi-family residential
182,572
—
1,237
183,809
Commercial and industrial
418,831
—
3,166
421,997
Consumer
30,632
—
35
30,667
Total
$ 2,712,915
$ 1,812
$ 49,811
$ 2,764,538
March 31, 2025
(dollars in thousands)
Pass
Special Mention
Substandard
Total
One- to four-family first mortgage
$ 496,694
$ 820
$ 6,842
$ 504,356
Home equity loans and lines
77,045
—
372
77,417
Commercial real estate
1,174,920
—
18,444
1,193,364
Construction and land
341,273
—
5,714
346,987
Multi-family residential
182,536
—
1,256
183,792
Commercial and industrial
407,742
—
3,621
411,363
Consumer
29,838
—
160
29,998
Total
$ 2,710,048
$ 820
$ 36,409
$ 2,747,277
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.
(dollars 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 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.
(dollars in thousands)
6/30/2025
3/31/2025
Increase (Decrease)
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 %
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.
June 30, 2025
March 31, 2025
Individuals
52 %
53 %
Small businesses
38
36
Public funds
7
8
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 $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.
Quarter Ended
(dollars in thousands, except per share data)
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Reported net income
$ 11,330
$ 10,964
$ 9,673
$ 9,437
$ 8,118
Add: Core deposit intangible amortization, net tax
213
231
250
259
261
Non-GAAP tangible income
$ 11,543
$ 11,195
$ 9,923
$ 9,696
$ 8,379
Total assets
$ 3,491,455
$ 3,485,453
$ 3,443,668
$ 3,441,990
$ 3,410,881
Less: Intangible assets
84,482
84,751
85,044
85,361
85,690
Non-GAAP tangible assets
$ 3,406,973
$ 3,400,702
$ 3,358,624
$ 3,356,629
$ 3,325,191
Total shareholders' equity
$ 408,818
$ 402,831
$ 396,088
$ 393,453
$ 375,830
Less: Intangible assets
84,482
84,751
85,044
85,361
85,690
Non-GAAP tangible shareholders' equity
$ 324,336
$ 318,080
$ 311,044
$ 308,092
$ 290,140
Return on average equity
11.24 %
11.02 %
9.71 %
9.76 %
8.75 %
Add: Average intangible assets
3.24
3.23
2.99
3.14
2.98
Non-GAAP return on average tangible common equity
14.48 %
14.25 %
12.70 %
12.90 %
11.73 %
Common equity ratio
11.71 %
11.56 %
11.50 %
11.43 %
11.02 %
Less: Intangible assets
2.19
2.21
2.24
2.25
2.29
Non-GAAP tangible common equity ratio
9.52 %
9.35 %
9.26 %
9.18 %
8.73 %
Book value per share
$ 52.36
$ 50.82
$ 48.95
$ 48.75
$ 46.51
Less: Intangible assets
10.82
10.69
10.51
10.58
10.61
Non-GAAP tangible book value per share
$ 41.54
$ 40.13
$ 38.44
$ 38.17
$ 35.90
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.
HOME BANCORP, INC. AND SUBSIDIARY
CONDENSED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
(dollars in thousands)
6/30/2025
3/31/2025
12/31/2024
9/30/2024
6/30/2024
Assets
Cash and cash equivalents
$ 112,595
$ 110,662
$ 98,548
$ 135,877
$ 113,462
Investment securities available for sale, at fair value
393,462
400,553
402,792
420,723
412,472
Investment securities held to maturity
1,065
1,065
1,065
