HOME BANCORP, INC. SEC 10-Q Report

Home Bancorp, Inc., a leading financial institution specializing in community banking services, has released its Form 10-Q report for the third quarter of 2025. The report highlights significant improvements in key financial metrics and provides insights into the company's operational performance and strategic initiatives.

Financial Highlights

Net Income: Home Bancorp, Inc. reported a net income of $12.4 million for the third quarter of 2025, marking an increase of $2.9 million or 30.9% compared to the third quarter of 2024. For the nine months ended September 30, 2025, net income was $34.7 million, up $7.9 million or 28.7% from the same period in 2024.

Diluted EPS: The diluted earnings per share (EPS) for the third quarter of 2025 was $1.59, an increase of $0.41 compared to the third quarter of 2024. For the nine months ended September 30, 2025, diluted EPS was $4.41, up $1.07 from the same period in 2024.

Net Interest Income: Net interest income for the third quarter of 2025 was $34.1 million, an increase of $3.7 million or 12.3% compared to the third quarter of 2024. For the nine months ended September 30, 2025, net interest income was $99.2 million, up $10.5 million or 11.9% from the same period in 2024.

Net Interest Margin: The net interest margin improved to 4.10% for the third quarter of 2025, up from 3.71% in the third quarter of 2024. For the nine months ended September 30, 2025, the net interest margin was 4.02%, up from 3.67% for the same period in 2024.

Noninterest Income: Noninterest income for the third quarter of 2025 was $3.7 million, up $46,000 or 1.2% compared to the third quarter of 2024. For the nine months ended September 30, 2025, noninterest income was $11.5 million, an increase of $467,000 or 4.2% from the same period in 2024.

Noninterest Expense: Noninterest expense for the third quarter of 2025 was $22.5 million, up $273,000 or 1.2% compared to the third quarter of 2024. For the nine months ended September 30, 2025, noninterest expense was $66.5 million, an increase of $1.6 million or 2.4% from the same period in 2024.

Business Highlights

Loan Portfolio Performance: As of September 30, 2025, the total loans were $2.7 billion, reflecting a decrease of $12.3 million or 0.5% from December 31, 2024. The decline was primarily due to reductions in one-to-four-family first mortgage and construction and land loans, partially offset by increases in home equity loans and lines, and commercial real estate loans.

Allowance for Credit Losses: The Allowance for Credit Losses (ACL) was recalculated quarterly, with the ACL totaling $34.6 million or 1.28% of total loans at September 30, 2025, compared to $35.6 million or 1.31% of total loans at December 31, 2024. This reflects management's ongoing evaluation of credit losses expected over the life of the loans.

Nonperforming Assets: Nonperforming assets increased significantly by $15.3 million or 98.0%, from $15.6 million at December 31, 2024, to $30.9 million at September 30, 2025. This increase was primarily due to several loan relationships being moved to nonaccrual status during the period.

Deposit Growth: Total deposits grew by $194.8 million or 7.0%, reaching $3.0 billion at September 30, 2025. This growth was driven by increases in demand deposits and certificates of deposit, while savings deposits saw a decline.

Net Interest Margin: The net interest margin improved to 4.10% for the third quarter of 2025, up from 3.71% in the same period of 2024. This increase was primarily due to higher yields on interest-earning assets and lower funding costs.

Interest Expense Reduction: Total interest expense for the third quarter of 2025 was $15.1 million, down $1.9 million or 11.1% compared to the third quarter of 2024, primarily due to lower cost of borrowings.

Noninterest Income: Noninterest income for the third quarter of 2025 was $3.7 million, up slightly by $46,000 or 1.2% compared to the third quarter of 2024, driven by an increase in service fees and charges.

Noninterest Expense: Noninterest expense for the third quarter of 2025 was $22.5 million, up $273,000 or 1.2% compared to the third quarter of 2024, primarily due to increased compensation and benefits and foreclosed assets.

Investment Securities Portfolio: The investment securities portfolio decreased by $19.5 million or 4.8%, from December 31, 2024, to $384.4 million as of September 30, 2025. The net unrealized loss on available-for-sale investment securities improved to $26.5 million from $41.0 million.

Future Outlook: The company anticipates continued monitoring and adjustments to the Allowance for Credit Losses as economic conditions evolve. Additionally, the company expects to maintain its liquidity management strategies to support operational needs and strategic initiatives.

SEC Filing: HOME BANCORP, INC. [ HBCP ] - 10-Q - Nov. 03, 2025