HBCP

This article first appeared on GuruFocus. - Net Income: $10.1 million, or $1.28 per share, versus $1.48 per share in Q2. - Return on Assets: 1.12% for the quarter. - Net Interest Income: Record $35.9 million, up $110,000 from Q2 and up $1.8 million (5%) year-over-year. - Net Interest Margin: 4.19%, down 5 basis points from Q2; would have been 4.28% excluding $862,000 in interest reversals. - Loan Yields: 6.4%, down 6 basis points, with interest reversals reducing yield by 12 basis points. - Investment Portfolio Yield: 2.87%, up 19 basis points. - Cost of Interest-Bearing Liabilities: 2.42%, up 4 basis points. - Total Deposits: $3.1 billion, down $15.4 million (less than 1%) from Q2; year-to-date growth of approximately 4% annualized. - Cost of Deposits: 1.69% for the quarter; average cost of interest-bearing deposits up 5 basis points to 2.33%. - Noninterest-Bearing Deposits: 27% of total deposits. - Loans: Decreased $4 million in Q3; year-to-date growth of approximately 1.5% annualized, led by Houston at 6% annualized. - Loan-to-Deposit Ratio: 91%, within target range. - Noninterest Income: $4.2 million, up $282,000 from Q2; expected to remain stable at $4.0 million to $4.2 million per quarter. - Noninterest Expense: $26.3 million, up $1.8 million from Q2, driven by a $1.7 million increase in foreclosed asset expense (totaling $2 million); excluding foreclosed asset costs, expected at $24.2 million to $24.6 million over the next couple of quarters. - Provision for Loan Losses: $1 million, versus $762,000 in Q2. - Net Charge-Offs: $586,000 for the quarter; 7 basis points annualized year-to-date. - Nonperforming Loans: Increased from $26.4 million to $42.2 million (95 to 1.52 basis points of total loans), driven by 6 relationships totaling $19.5 million placed on nonaccrual. - Nonperforming Assets: $53.7 million, or 1.49% of total assets; foreclosed assets declined $1.2 million to $11.6 million. - Substandard Loans: Increased $14 million to $82.9 million; special mention loans declined $4.7 million to $22.2 million. - Allowance for Loan Losses: $34.4 million, or 1.24% of total loans. - Tangible Book Value Per Share: $46.97, essentially unchanged from Q2 and up more than 8% year-over-year. - Capital Ratios: Tangible common equity ratio of 10.5%, Tier 1 leverage ratio of 12.3%, total risk-based capital ratio of 16.1%. - Store Locations: 43 locations; total assets of $3.6 billion, grown at a compound annual rate of more than 11% since the 2008 IPO. - Warning! 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Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Net interest income reached a record high of $35.9 million, up 5% year-over-year, demonstrating core earnings resilience. - Cost of deposits remained one of the lowest in the peer group at 1.69%, with noninterest-bearing deposits at 27% of total deposits. - Loan pipeline is robust at $440 million, with $132 million committed, and expected to close by year-end or early 2027. - Capital ratios are strong with tangible common equity ratio of 10.5% and total risk-based capital ratio of 16.1%. - Tangible book value per share increased over 8% year-over-year to $46.97, and the company has repurchased 17% of shares since 2019. - Net income declined to $10.1 million or $1.28 per share from $1.48 per share in the prior quarter, impacted by higher credit costs. - Nonperforming loans increased to $42.2 million or 1.52% of total loans, driven by six loan relationships totaling $19.5 million moved to nonaccrual. - Foreclosed asset expense was elevated at $2 million, primarily due to write-downs on properties, and is expected to remain above historical levels. - Loan growth was modest with a decrease of $4 million in the quarter, and net loan growth is expected to be tempered by problem loan payoffs. - Net charge-offs may be somewhat elevated over the next couple of quarters as problem credits are resolved, with year-to-date net charge-offs at 7 basis points annualized. Q: Can you provide context on the six problem loans placed on nonaccrual geography, loan types, and specific reserves and what gives you confidence around potential loss rates? A: President Darren Guidry said the $19.5 million in relationships are spread across nearly every market with no geographic concentration, and loan types span CRE, multi-use, owner-occupied CRE, C&I, and construction/development with no discernible common thread. A couple of the credits already carry specific reserves, and beyond that, management does not expect any significant losses. Q: Are you optimistic that NPAs have peaked, given the prior road map for roughly $30 million of problem asset resolutions by year-end? A: Guidry said management is optimistic it has identified all of its issues and is close to the peak, if not there already, based on the past due report and updated borrower financials. CEO John Bordelon cautioned that further Fed tightening in the fourth and first quarters could pressure borrowers broadly, so the bank remains on high alert even though he does not expect a repeat of this quarter's level. Q: What is a good starting point for the NIM in the fourth quarter, and how confident are you that the balance sheet is positioned for upside if rates rise? A: CFO David Kirkley said the interest reversal cost about 9 basis points, and excluding similar surprises, 4.27% to 4.28% is the starting point going forward. He cited investment securities reinvesting at yields north of 5% versus a 2.5% to 3% portfolio yield, and roughly 6 basis points of additional loan yield per rate hike from automatically repricing loans, which should offset money market and CD repricing. Q: Can you quantify recent paydowns and give an update on the loan pipeline relative to the end of June? A: Guidry said about $5 million of paydowns have been received since last quarter, with another $5 million expected by year-end and $5 million more in early first quarter. The pipeline is robust at roughly $440 million, of which $132 million is committed, with most expected to close by year-end and mid first quarter though problem-loan resolutions will offset a portion of that production. Q: What have you seen on deposit competition in terms of rate and level, and does it vary by market? A: Kirkley said CD pricing is generally in the 4% to 4.40% range, with growing divergence in offered durations and brokerage firms pricing more aggressively off treasury curves. Home Bank's top stated rate is around 4.1%, which has worked for most customers and can be adjusted quickly. Texas is always somewhat more competitive given the larger number of banks with varying balance sheet strategies. Q: If the Fed hikes again in December and early in the first quarter, is it fair to expect the margin to keep marching higher, assuming deposit competition stays rational? A: Kirkley said the outcome depends on deposit pricing and loan pricing, noting loan pricing has actually been more aggressive than CD pricing. He said the balance sheet is well positioned for a rising rate environment and should support a slight upward march in NIM, or at least stability, after another quarter or two of hikes. Q: Is there still meaningful exposure to short-term rental properties, and how is that book holding up? A: Guidry said the bank still has a significant amount of short-term rental credit concentrated in the New Orleans market, but no credit issues are apparent as of now. Management is pleased with and optimistic about that exposure. Q: What is your view on bank M&A as the incoming CEO? A: Guidry said Home Bank is well positioned to take advantage of any acquisition that becomes available and is hopeful one will. The focus is on growing the franchise within existing markets and connecting the dots between markets across South Louisiana, Texas, and Mississippi, where deals make sense geographically, culturally, and in terms of acquired talent. Q: What drove the elevated credit costs this quarter, and how should we think about foreclosed asset expense and charge-offs going forward? A: Guidry said the quarter included $2 million of foreclosed asset expense from appraisal updates and list price reductions, with several properties now under contract, so expense should decline but remain above historical levels. Net charge-offs, 7 basis points annualized year-to-date, may be somewhat elevated over the next couple of quarters as credits resolve, while the approach remains identifying problems early and limiting loss exposure. Q: Can you discuss the CEO transition and what it means for how the company operates? A: Bordelon announced he will retire as CEO in January 2027, with President Darren Guidry named successor and Bordelon remaining Chairman of the Board. He called it a planned and deliberate transition following Guidry's appointment as President in July, noting Guidry's 40-plus years of banking experience and three decades at Home Bank, and said shareholders, customers, and employees should not expect any significant change in how the company operates. Q: What is the outlook for noninterest expense over the next few quarters? A: Kirkley said excluding foreclosed asset costs, noninterest expense should run $24.2 million to $24.6 million over the next couple of quarters. Beginning in the second quarter of 2027, he expects a typical annual increase of approximately 4% to 5%, driven by merit increases and other investments. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

- Interested in Home Bancorp, Inc.? Here are five stocks we like better. - Third-quarter earnings declined to $10.1 million, or $1.28 per share, from $1.48 in the prior quarter, pressured by interest reversals on nonaccrual loans and higher foreclosed-asset expenses. Net interest income nevertheless reached a quarterly record of $35.9 million. - Credit quality deteriorated: six loan relationships totaling $19.5 million moved to nonaccrual status, pushing nonperforming loans to $42.2 million, or 1.52% of total loans. Management expects some resolutions in the fourth quarter and early 2027, while foreclosed-asset expenses should decline from elevated third-quarter levels. - CEO succession is planned for January 2027, when President Darren Guidry will succeed retiring CEO John Bordelon, who will remain chairman. The bank reported a roughly $440 million loan pipeline but expects problem-loan paydowns and payoffs to temper growth. Home Bancorp (NASDAQ:HBCP) reported third-quarter 2026 net income of $10.1 million, or $1.28 per share, as higher credit-related costs and foreclosed asset expenses weighed on results. The company also announced that Chairman and Chief Executive Officer John Bordelon plans to retire as CEO in January 2027, with President Darren Guidry set to succeed him. Third-quarter earnings declined from $1.48 per share in the second quarter, while return on assets was 1.12%. Management said results were affected by interest reversals on loans placed on nonaccrual status and elevated expenses tied to foreclosed properties. Still, the bank recorded a quarterly record in net interest income and maintained what executives described as a comparatively low cost of deposits. → Berkshire Just Backed This Little-Known Stock—Should You Chase It? Bordelon said the transition is part of a planned succession process following Guidry's appointment as president in July. Bordelon will remain chairman of the board after retiring from the CEO role. Guidry has more than 40 years of banking experience, including more than three decades at Home Bank, according to Bordelon. Bordelon said the company does not anticipate significant changes in its operating approach under the new leadership structure. → These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington During Bordelon's 33 years as CEO, Home Bancorp expanded from a Lafayette-based savings institution into a community bank operating across the Gulf South. Since its 2008 initial public offering, the company has completed six acquisitions, expanded into Greater New Orleans, Baton Rouge, Mississippi and Houston, and increased total assets at a compound annual rate of more than 11% to $3.6 billion across 43 locations, Bordelon said. Guidry credited Bordelon with maintaining an emphasis on disciplined underwriting, core deposits and long-term shareholder value through multiple economic cycles and disruptions. → Broadcom's CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Net interest income increased to a record $35.9 million in the third quarter, up $110,000 from the prior quarter and $1.8 million, or 5%, from a year earlier. Net interest margin was 4.19%, down 5 basis points sequentially. Chief Financial Officer David Kirkley said loan yields declined 6 basis points to 6.4%, including an $862,000 reversal of accrued interest on loans transferred to nonaccrual status. The reversals reduced loan yield by 12 basis points. Excluding that item, net interest margin would have been 4.28%, up 4 basis points from the second quarter. The investment portfolio yield increased 19 basis points to 2.87% as the bank reinvested cash flows at higher rates. Meanwhile, the cost of interest-bearing liabilities rose 4 basis points to 2.42%. Kirkley said approximately 27% of the loan portfolio is floating rate and reprices within three months, while 46% is variable rate. He said the company's investment cash flows and repricing loan portfolio should help offset higher funding costs in a rising-rate environment. In response to an analyst question, he cited a 4.27% to 4.28% margin as a starting point going forward, absent unusual items such as interest reversals. Total deposits stood at $3.1 billion at quarter-end, down $15.4 million, or less than 1%, from the second quarter. Core deposits fell $28.3 million, primarily in NOW accounts, while money market accounts increased $14.3 million and certificates of deposit rose $13 million. Noninterest-bearing deposits represented 27% of total deposits. The total cost of deposits was 1.69%, and the average cost of interest-bearing deposits increased 5 basis points to 2.33%. Kirkley said competition for deposits remains elevated, particularly in Texas, though Home Bank intends to remain disciplined on pricing. Credit quality was the primary challenge during the quarter. Home Bancorp placed six loan relationships totaling $19.5 million on nonaccrual status, increasing nonperforming loans to $42.2 million, or 1.52% of total loans, from $26.4 million, or 95 basis points, in the prior quarter. Total nonperforming assets rose to $53.7 million, representing 1.49% of total assets. Substandard loans increased $14 million to $82.9 million, while special-mention loans declined $4.7 million to $22.2 million. Guidry said the six credits were spread across the company's markets and included commercial real estate multi-use facilities, owner-occupied commercial real estate, commercial and industrial loans, and construction and development credits. He said management had not identified a concentration by geography, loan type or industry. A couple of the relationships have specific reserves, and management does not expect significant additional losses from them, he said. The company recorded a $1 million provision for credit losses, compared with $762,000 in the second quarter, primarily due to higher specific reserves. Net charge-offs totaled $586,000. The allowance for loan losses was $34.4 million, or 1.24% of total loans. Management said it is encouraged by developments among other watch-list credits, with several substandard loans positioned for upgrades or paydowns. Some resolutions are expected in the fourth quarter, with others extending into early 2027. Guidry said the company may see additional downgrades through year-end but does not currently anticipate any of significant size. Foreclosed assets declined $1.2 million to $11.6 million following property sales and write-downs. Noninterest expense increased $1.8 million from the second quarter to $26.3 million, largely because foreclosed asset expense rose $1.7 million to $2 million. The expenses primarily reflected appraisal-driven write-downs and list-price reductions on other real estate owned. Management said several properties are under contract and expects foreclosed asset expense to decline from third-quarter levels, though remain above historical levels while problem assets are resolved. Loans decreased $4 million during the quarter as elevated payoffs and slower construction fundings offset steady production. Year-to-date loan growth has been running at an annualized rate of about 1.5%, led by Houston at a 6% annualized pace. Guidry said the pipeline totaled roughly $440 million, including approximately $132 million of committed loans. Most of the pipeline is expected to close by year-end or in the middle of the first quarter, he said. The pipeline is concentrated primarily in smaller business banking credits, including commercial and industrial lending and owner-occupied commercial real estate, along with several larger commercial relationships. However, management expects paydowns and payoffs connected to problem-loan resolutions to offset some new production. Guidry said the bank had received roughly $5 million in paydowns since the prior earnings call and expects another $5 million by year-end and an additional $5 million early in the first quarter. The company's loan-to-deposit ratio was 91%, within its target range. Tangible book value per share was $46.97, essentially unchanged from the second quarter as earnings were offset by a $9.1 million increase in unrealized investment portfolio losses resulting from higher rates. Home Bancorp reported a tangible common equity ratio of 10.5%, a Tier 1 leverage ratio of 12.3% and a total risk-based capital ratio of 16.1%. Guidry also said the bank is positioned to pursue acquisitions that fit its geographic, cultural and talent objectives across its existing Gulf South, Texas and Mississippi markets. Home Bancorp, Inc is the holding company for Home Bank, a community-focused bank headquartered in Lafayette Hill, Pennsylvania. The company serves individuals, families, professionals and businesses through a network of banking offices in southeastern Pennsylvania and surrounding communities. Home Bank offers a range of deposit products, including checking, savings, money market and certificate of deposit accounts. Its lending activities include residential mortgage loans, home equity financing, commercial real estate loans, construction and development financing, commercial business loans and consumer loans. Through its community banking model, Home Bancorp focuses on relationship-based service and local decision-making. 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Image source: The Motley Fool. Tuesday, Oct. 20, 2026 - Chairman and Chief Executive Officer - John Bordelon - President - Darren Guidry - Chief Financial Officer - David Kirkley Operator: Good morning, ladies and gentlemen. Welcome to Home Bancorp's Third Quarter 2026 Earnings Call. [Operator Instructions] At this time, I would like to turn the call over to Home Bancorp's Chairman and CEO, John Bordelon; President, Darren Guidry; and Chief Financial Officer, David Kirkley. Mr. Kirkley, please go ahead. David Kirkley: Thank you. Good morning, and welcome to Home Bank's Third Quarter 2026 Earnings Call. Our earnings release and investor presentation are available on our website. I'd ask that everyone please refer to the disclaimer regarding forward-looking statements in the investor presentation and our SEC filings. Now I'll hand it over to John to make a few comments about the third quarter. John? John Bordelon: Thanks, David. Good morning, and thank you for joining our earnings call today. We appreciate your interest in Home Bank as we discuss our results, expectations for the future and our approach to creating long-term shareholder value. Before we discuss the quarter, I want to share some personal news, and I've informed our Board of Directors yesterday of my decision to retire as Chief Executive Officer in January of 2027. And the Board has named Darren Guidry, our President, as my successor. I will remain part of Home Bank's leadership as Chairman of the Board, and I look forward to working closely with Darren and the rest of our leadership team in that role. This is a planned and deliberate transition. When we named Darren President in July, we said we were putting in place a leadership structure to sustain our next phase of growth, and this is the next step in that plan. Darren has more than 40 years of banking experience, more than 3 decades here at Home Bank. He knows our customers, our markets, our credit culture as well as everyone in the company. Our executive team has worked closely together for many years, and our shareholders, customers and employees do not expect any significant change in how we operate. Leading Home Bank has been a privilege of my career. Over my 45 years with the bank, including 33 years as CEO, I have watched Home Bank grow from a Lafayette-based savings institution into one of the leading community banks in the Gulf South. Since our IPO in 2008, we have completed 6 acquisitions, expanded into Greater New Orleans, Baton Rouge, Mississippi and Houston and grown total assets at a compound annual rate of more than 11% to $3.6 billion with 43 locations. What I'm most proud of, however, is not the size of the balance sheet, but the quality of the franchise we have built. We have a core deposit base that is among the most valuable in our region with a high level of noninterest-bearing deposits and a cost of deposits that's one of the lowest in our peer group. We have a relationship-based lending culture, a strong capital position and a long record of consistent profitability. Most importantly, we have a team of bankers who are committed to taking care of our customers and our communities. I am confident that Home Bank's best days are ahead of it and that the company is in very good hands. With that, I'll turn it over to President and soon to be CEO, Darren Guidry, to discuss our third quarter results. Darren? Darren Guidry: Thank you, John. Before turning to our results, I want to say a few words about John. No one has had a greater impact on Home Bank. Under John's leadership, the bank has successfully navigated hurricane, the S&L crisis, the financial crisis, a pandemic and multiple interest rate cycles. Through all of it, he kept his focus on disciplined underwriting, the strength of our core deposit franchise and building long-term value for our shareholders. And on a personal level, John has been a mentor and a friend to me for more than 30 years. I'm honored by the confidence that John and the Board have placed in me and in our team. I'm very happy that John will continue to help lead Home Bank as Chairman of the Board. His experience and perspective will continue to be a tremendous asset to this company. I look forward to working with John, the Board and our team as we build on the foundation he established and lead Home Bank into its next chapter. Now turning to our third quarter results. Yesterday afternoon, we reported third quarter net income of $10.1 million or $1.28 per share compared to $1.48 per share in the second quarter. Return on assets was 1.12% for the quarter. Our results were impacted by higher credit-related costs, including elevated foreclosed asset expense and the reversal of interest on loans moved to nonaccrual status. The quarter did demonstrate the resilience of our core earnings. Net interest income reached a record high for Home Bank and our cost of deposits remained one of the lowest in our peer group. Loans decreased $4 million in the third quarter. Production was steady, but payoffs were elevated and construction fundings slowed during the quarter. Year-to-date, loans have grown at an annualized rate of approximately 1.5%, with our Houston market continuing to lead the way at 6% annualized. Looking ahead, our pipeline is healthy. Both our approved commitments and the volume of loans and underwriting are running above normal levels. We expect a good portion of those commitments to close by the end of the year. The pipeline is well diversified across our markets and loan types and consists primarily of smaller business banking credits with a heavy focus on C&I owner-occupied commercial real estate, along with a few larger commercial relationships. However, as we work through our problem loans, we expect paydowns and payoffs from those workouts to offset a portion of the new production, which will likely temper net loan growth in the near term. We will continue to focus on growing relationships that produce appropriate risk-adjusted returns. Deposits were down slightly in the third quarter. Year-to-date, deposits have grown at an annualized rate of approximately 4% and our loan-to-deposit ratio of 91% remains in our target range. Credit was the primary challenge this quarter, and we moved properly to recognize and address emerging credit issues. [ 6 ] loan relationships totaling $19.5 million were placed on nonaccrual status during the quarter, which drove the increase in nonperforming assets. These reflect individual borrower situations rather than stress in any one industry or market. And based on our current assessment, we believe these credits are appropriately reserved, and we are working closely with each borrower to resolve. We also recorded elevated foreclosed asset expense in the third quarter, primarily due to write-downs on properties in other real estate owned, resulting from updated appraisals and list price reductions. We are making progress on resolving these properties with several currently under contract. Going forward, we expect foreclosed asset expense to be lower than what we saw in the third quarter, although likely above historical levels as we continue to work through our problem assets. We are also seeing some encouraging signs across the rest of our watch list. Several substandard credits are positioned for upgrades or paydowns, and we expect to see some of those resolutions in the fourth quarter with others extending into early 2027. While we may see a few additional downgrades through year-end, we do not currently expect any of significant size. Past due loans are limited to credits we've already identified and are actively monitoring. We have workout strategies in place for all substandard and nonaccrual loans. Net charge-offs, which were 7 basis points annualized year-to-date, maybe somewhat elevated over the next couple of quarters as we resolve these credits. But our approach remains the same: identify problems early, work in the resolution and limit our loss exposure. At the same time, while higher interest rates benefit our net interest income, it could place pressure on certain borrowers over time. We are monitoring these exposures closely as rates move. Importantly, the fundamentals of Home Bank remain very strong with robust capital, a solid reserve position, ample liquidity and a balance sheet that is well positioned for a rising rate environment. With that, I'll turn it over to David, our Chief Financial Officer. David? David Kirkley: Thanks, Darren. Please feel free to refer to the investor presentation we have provided as I discuss the company's third quarter financial performance. Net interest income was a record $35.9 million in the third quarter, an increase of $110,000 from the second quarter and $1.8 million or 5% from a year ago. NIM was 4.19% in the third quarter, down 5 basis points from the second quarter. Loan yields declined 6 basis points to 6.4% as interest reversals of $862,000 on loans moved to nonaccrual status reduced loan yield by 12 basis points. Excluding the interest reversals, NIM would have been 4.28%, up 4 basis points from the second quarter. The yield on our investment portfolio increased 19 basis points to 2.87% as we continue to reinvest cash flows at higher rates. On the funding side, our cost of interest-bearing liabilities increased 4 basis points to 2.42%. Slide 14 details the repricing and maturity profile of our loan and investments portfolio. Approximately 27% of our loan portfolio is floating rate and reprices within 3 months and 46% of the portfolio is variable rate. Our investment portfolio with a weighted average rate of 2.8% has $69 million of cash flows expected over the next 12 months and 46% of the portfolio over the next 3 years that we can reinvest at current market yields. We believe our balance sheet remains well positioned for a rising rate environment. As shown on Slides 18 and 19, total deposits were $3.1 billion at quarter end, down $15.4 million or less than 1% from the second quarter. Core deposits decreased $28.3 million, primarily in NOW accounts, which was offset by an increase of $14.3 million in money market accounts and $13 million in CDs. Noninterest-bearing deposits continue to represent 27% of total deposits. Our total cost of deposits was 1.69% for the quarter, and the average cost of interest-bearing deposits increased 5 basis points to 2.33%, reflecting the higher interest rate environment and competitive pricing in our markets. We expect continued competition for deposits, but we will remain well disciplined in our pricing. Slides 15 and 16 provide additional detail on credit quality. Nonperforming loans increased during the quarter from $26.4 million to $42.2 million or from 95 basis points to 1.52% of total loans, primarily due to the 6 relationships Darren mentioned. Foreclosed assets declined $1.2 million to $11.6 million, reflecting property sales and write-downs. Total nonperforming assets were $53.7 million or 1.49% of total assets. Substandard loans increased $14 million to $82.9 million, while special mention loans declined $4.7 million to $22.2 million. We provisioned $1 million in the third quarter compared to $762,000 in the second quarter, primarily reflecting higher specific reserves. Net charge-offs were $586,000 for the quarter. The allowance for loan losses stands at $34.4 million or 1.24% of total loans, and we are comfortable with our reserve levels given the composition and risk profile of the portfolio. Slide 22 provides detail on noninterest income and expenses. Noninterest income totaled $4.2 million in the third quarter, up $282,000 from the second quarter, driven by higher service fees and other income. We expect quarterly noninterest income to remain stable in the range of $4 million to $4.2 million. Noninterest expense totaled $26.3 million in the third quarter, an increase of $1.8 million from the second quarter. As you can see on Slide 22, excluding foreclosed asset expense, noninterest expense was essentially flat compared to the second quarter. The third quarter increase was primarily driven by a $1.7 million increase in foreclosed asset expense, which totaled $2 million for the quarter. The write-downs are spread across several properties and our foreclosed asset portfolio remains granular with no single property carried at more than $2.2 million. Excluding foreclosed asset costs, we expect noninterest expense to be in the range of $24.2 million to $24.6 million over the next couple of quarters. Beginning in the second quarter of 2027, we expect noninterest expense to reflect a typical annual increase of approximately 4% to 5%, primarily driven due to annual merit increases and other investments. Slides 23 and 24 summarize our capital position and the progress of our capital management strategy. Tangible book value per share was $46.97 per share, essentially unchanged from the second quarter as earnings were offset by a $9.1 million increase in unrecognized losses in our investment portfolio due to higher interest rates. Tangible book value per share is up more than 8% from a year ago. Capital ratios remain strong with a tangible common equity ratio of 10.5%, a Tier 1 leverage ratio of 12.3% and a total risk-based capital ratio of 16.1%. Since 2019, we have grown tangible book value per share at a compounded annual rate of more than 8%, repurchased approximately 17% of our shares outstanding and consistently increased our dividend. And with that, operator, please open the line for Q&A. Operator: [Operator Instructions] Your first question comes from Stephen Scouten from Piper Sandler. Stephen Scouten: And congrats, John, on a storied career. It's shocking to see you go. It kind of felt like you'd be around forever. So it'll be different. John Bordelon: I can't leave these guys alone. I have to be around a little bit. Stephen Scouten: Well, yes, he'll still be Chairman, I know, but it will be different. But exciting times, I'm sure, for the bank, too. So I guess my first question would just be these 6 loans that you guys noted, the problem loans, and forgive me if I missed this, but have you given any context on kind of geography of these loans, maybe what loan types these are and kind of any specific reserves that are related to them that gives you confidence around potential loss rates? Darren Guidry: Yes. I'll -- the geography is -- it's not consistent in any one of our markets. It's throughout and it's one in almost every one of our markets. So there's no concentration of issues and loan types, the CRE, multi-use facility, owner-occupied CRE, C&I credit, construction development. So there's no concentration that we can see. We've been looking for a tie. And at this point, we can't see anything. Stephen Scouten: Okay. And any specific reserves related to those loans currently? Or again, what gives confidence kind of in the -- I think the commentary was that no sizable incremental losses are expected? Darren Guidry: A couple of them already have specific reserves tied to them. Beyond that, we don't expect any significant losses. Stephen Scouten: Okay. And then one reminder. I know you guys used to play a little bit in the kind of short-term rental property space. Is there still any meaningful exposure there? And if so, how is that book holding up? Darren Guidry: Yes. We still have a significant amount of credit in short-term rental. It is concentrated in the New Orleans market. No credit issues that are apparent as of now. So we're fairly pleased and optimistic that will have will continue. So no concern with that exposure. Stephen Scouten: Great. Great. Okay. And then maybe just thinking about the margin, what would be a good starting point to think about for fourth quarter? I think my math, I was getting maybe a 9 or 10 basis point impact to the NIM from the interest reversal. Just kind of wondering how you think about that heading into fourth quarter and then maybe the confidence in the balance sheet being well positioned for upside on higher rates? David Kirkley: Yes. It impacted, I believe, 9 basis points, the interest reversal. And outside of surprises like that in the future. We continue to see good repricing opportunities from our loan portfolio and our investment portfolio. You can see the yield rising on the investment securities portfolio quarter-over-quarter as our reinvestment yields are north of 5% with a yield of 2.5% to 3%. You have a loan portfolio that every rate hike, you get 6 basis points of additional loan yield from our loans that reprice automatically, which offsets our money market increases. And as we continue to see CDs reprice upwards, I think that will be offset or more than offset by investment and loan yield -- loan cash flow repricing. So I think starting point for this quarter, 4.27%, 4.28% is your starting point going forward. Stephen Scouten: Okay. Perfect. That make sense. Darren, congrats. Look forward to working with you moving forward. Operator: Your next question comes from Feddie Strickland from Hovde Group. Feddie Strickland: Congratulations to both John, a well-deserved retirement and to Darren as well. Just wanted to ask on the deposit line here. I mean, can you talk about a little bit what you've seen so far just in terms of rate and level of competition? I mean it seems like funding costs held in pretty well this quarter, but I know the rate hike came in pretty late. So just curious what you've seen so far. David Kirkley: From a competitive pricing standpoint, it's starting to get more divergence in duration of CDs that are being offered. You're seeing some competitors get more aggressive. You're seeing some of the brokerage firms get even more aggressive than that, pricing more off of, I guess, treasury curves. I would say, by and large, the banking CD pricing for CD rates is generally in the 4 to 4.40 range. And so that's what we're seeing. I think we've had success at maintaining our CD portfolio so far after the rate hike. Our top stated rate, I believe, is around 4.1%. And that works for the majority of our customers and provide -- we can adjust accordingly pretty quickly going forward as well if need be. Feddie Strickland: Got it. And are you seeing any more competition in one market versus the other? I mean I assume Texas is probably more competitive than Louisiana, but you never know. David Kirkley: Yes, Texas is always a little bit more competitive. There's just a larger number of banks with varying balance sheet strategies over there. So there are some banks that are more aggressive. But you are seeing some of the big global institutions that are offering some nice pricing with the marketing that goes along with it. Feddie Strickland: Got it. And just switching gears for a second to the margin. Just want to make sure I understood correctly. Obviously, you'll have the interest accrual piece backed out. But as we get through '27 here, if we get another -- let's say, we get another hike in December, another one early in the first quarter, I mean, you guys should be in a pretty good position for the margin to continue to march higher under those conditions, assuming deposit competition doesn't run off into something crazy. Is that fair? David Kirkley: Yes. I think one aspect of it is the deposit pricing and two is how loan pricing plays out over this period. We've seen, I would say, more aggressive loan pricing that is questionable as opposed to CD pricing, which is kind of in line with alternative funding. So it's the ability to be able to reprice the loan portfolio at a proper margin and see how competitors price their loans going forward as there's lots of reinvestment opportunities and new business is getting harder and harder to come by with rates increasing. But overall, our balance sheet is well positioned to take on some rising rate environment and continue a slight upward march in NIM or at least stability after a quarter or 2 more hikes. Operator: [Operator Instructions] Your next question comes from Joe Yanchunis from Raymond James. Joseph Yanchunis: And John, for starters, I want to echo a lot of the comments said earlier, congrats on the retirement. We'll certainly miss hearing you on these earnings calls and seeing you throughout the year. John Bordelon: Yes. The problem with it is I got to keep these guys in line and I don't get paid anymore. Joseph Yanchunis: All right. So I wanted to kind of start on credit here. On the last call, you outlined a road map for about $30 million of problem asset resolutions by year-end. And in your prepared remarks, it sounds like you expect some credits to resolve before in the fourth quarter. But are you optimistic that we're at peak NPAs right now? Darren Guidry: Yes. We'd love to say definitively, yes, Joe. We're optimistic. We're looking at the past due report, and it appears that we've identified all of our issues. We continue to get updated financial information to be able to recognize issues. But we're optimistic that we've gotten close to the peak if we're not there already. John Bordelon: I would just add to that, Joe, that obviously, the Fed's moves are going to, I think, impact lending throughout the country. A lot of people have elevated NPAs at this particular point. And if Fed tighten again in fourth quarter and first quarter, that's going to just exacerbate those issues. So I don't think to the degree that we saw this quarter for sure, but we're kind of on high alert just making sure that we pay attention to a lot of our customers. Joseph Yanchunis: I appreciate. That was helpful and to kind of touch on that in a follow-up here. So in your prepared remarks, you talked about paydowns remaining elevated. It's likely to remain a headwind in the coming quarters. Can you quantify the paydowns you experienced in the September quarter and give an update on the loan pipeline relative to where it stood at the end of June? I guess I'm also just trying to see how are borrowers looking at projects now in this current environment. Darren Guidry: Well, we have received about $5 million in paydowns already, Joe, since we've mentioned it last quarter. We also anticipate very realistically, another $5 million by the end of the year and early in the first quarter, another $5 million. In addition, we have lots of plans out there and hopeful that we continue to get paydowns or potentially upgrades for some of our clients going forward. Joe, the pipeline is robust. It's about $440 million of loans in the pipeline with about $132 million of that, that's committed. Most of the $400 million will close by the end of the year and mid first quarter. So a healthy pipeline, possibly offset by some success in problem resolution. Joseph Yanchunis: Okay. That was great. And then last one for me here. I know you've looked and passed on a lot of deals over the years. But Darren, I'm curious, what's your view on bank M&A? Darren Guidry: We are well positioned to take advantage of any acquisition that would be available. We're hopeful that it happens. We look to continue to grow our franchise, both within our markets and connecting the dots between the markets we're not in. So we're hopeful to continue to do what we do throughout the South Louisiana, our Texas market as well as Mississippi and North. So where it makes sense geographically, culturally and acquisition of talent, we are well positioned to take advantage. Joseph Yanchunis: John and Darren, again, congrats on the milestones. Operator: [Operator Instructions] There are no further questions at this time. I'll turn the call back over to John Bordelon. John Bordelon: Thank you. Once again, thank you all for joining us today. I also want to thank our shareholders, analysts who cover us and many of the investors I've had the opportunity to get to know over the years for your support of Home Bancorp. We look forward to speaking to many of you in the next coming hours or days. Thank you very much for participating today. Have a great day. Operator: Ladies and gentlemen, this concludes today's conference call. Thank you for participating. You may now disconnect. 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Home Bancorp walked into Q3 2026 earnings with a modestly valued stock and a reputation as a steady regional bank. The market did not see it that way today. Shares dropped about 9.6% to US$59.47 after the release, as investors reacted to a weaker profit print and rising problem loans. The quarter's headline is a clear profit squeeze. Basic earnings per share came in at about US$1.30 and net income landed near US$10.1 million, both softer than Q2, while non performing loans climbed to roughly US$42.2 million. For a lender built on consistency, that gap between expectation and credit reality is what hit the stock. Like the stability of Home Bancorp's regional banking model but worried about rising non performing loans and a thinner profit line this quarter? Consider using the list of solid balance sheet and fundamentals stocks (25 results). - Total Revenue (Q3 2026 vs. Q3 2025): US$39.10 million vs. US$38.07 million (up about 2.7%) - Net Income (Excl. Extra Items, Q3 2026 vs. Q3 2025): US$10.10 million vs. US$12.36 million (down about 18.3%) - Basic EPS (Q3 2026 vs. Q3 2025): US$1.30 vs. US$1.60 (declined about 19.2%) - Non Performing Loans (Q3 2026 vs. Q3 2025): US$42.17 million vs. US$29.52 million (up about 42.8%) Ask Charlie what Home Bancorp isn't saying about rising problem loans. Optimists have argued that Home Bancorp can lean on a richer margin and a focused Texas build out to keep earnings moving forward. "Continuation of net interest margin expansion that Home Bancorp management expects through late 2026, supported by repricing of loans and securities at higher yields while keeping deposit costs at a relatively low 1.66%, could keep lifting net interest income and earnings power." Record Q3 net interest income of US$35.9 million and a modeled NIM of about 4.28% after nonaccrual interest reversals both support that premise. Deposit costs at 1.69% remain close to the narrative level. The offset is weaker net income and higher problem credits, which show that margin strength alone did not carry quarterly profitability. Bears have focused on the risk that higher operating costs and tougher deposit competition eventually overwhelm the margin story. "Noninterest expenses at Home Bancorp have moved higher, with guidance now at about US$24 million to US$24.8 million per quarter for several quarters instead of the earlier lower range. If fraud related and foreclosed asset costs stay elevated or increase further, this could offset margin gains and weigh on earnings growth." Q3 noninterest expense of US$26.3 million, including US$2.0 million of foreclosed asset costs, shows that concern playing out. Management now guides core expenses to roughly that US$24.2 to US$24.6 million band, so the higher run rate is confirmed. Deposit costs at 1.69% remain contained for now, although softer earnings and a 9.6% share price drop suggest investors are already pricing in this expense and credit friction. Not everyone reads the same price the same way. → See the higher figure this Narrative lands on, and how it gets there. Home Bancorp just showed how quickly sentiment can swing when earnings quality and credit trends collide. The real opportunity is finding stocks that could be undervalued before the crowd catches up. - Company 1 - 37% below our estimate - builds a broader advisory platform turning strong client pipelines and senior hiring into higher fee mandates in large cap and private capital segments. - Company 2 - 43% below our estimate - scales newer storage and inverter offerings so a higher margin mix helps balance project delays and interconnection bottlenecks across its installed base. - Company 3 - 24% below our estimate - converts grid modernization and aerospace program demand into higher margin engineered systems while integrating a diagnostics acquisition into its existing operating playbook. That is three of the list. See the full list of 34 companies trading below our fair value estimates → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include HBCP. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. - CEO John Bordelon announced his retirement effective January 2027, with President Darren Guidry named as successor to ensure a deliberate leadership transition. - Net interest income reached a record high of $35.9 million, driven by a balance sheet positioned to benefit from the rising interest rate environment. - Loan growth was tempered by elevated payoffs and slower construction fundings, despite steady production and a healthy pipeline in the Houston market. - Credit quality faced challenges as six loan relationships totaling $19.5 million were moved to nonaccrual status, reflecting individual borrower issues rather than systemic market stress. - Management attributed elevated noninterest expense to $2 million in foreclosed asset costs, primarily due to write-downs on properties following updated appraisals. - The bank maintains a low-cost core deposit base, with noninterest-bearing deposits representing 27% of the total portfolio despite competitive market pricing. - Management expects net interest margin (NIM) to stabilize around 4.27% to 4.28%, assuming no further significant interest reversals from nonaccrual loans. - Loan growth is expected to remain tempered in the near term as new production is partially offset by paydowns and payoffs from problem loan workouts. - Noninterest expense is projected to range between $24.2 million and $24.6 million over the next two quarters, excluding foreclosed asset costs. - The bank anticipates a robust pipeline of approximately $440 million in loans, with a significant portion expected to close by the end of the year or early Q1 2027. - Management remains open to M&A opportunities that offer geographic synergy, cultural alignment, or talent acquisition across the Gulf South and Texas. - Interest reversals on loans moved to nonaccrual status reduced loan yields by 12 basis points during the quarter. - Foreclosed asset expense increased by $1.7 million due to strategic write-downs aimed at facilitating property sales. - Tangible book value per share remained stable as earnings were offset by a $9.1 million increase in unrecognized losses in the investment portfolio due to higher rates. - Net charge-offs may remain somewhat elevated over the next few quarters as the bank actively resolves identified substandard and nonaccrual credits. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. - Management clarified that the six new nonaccrual relationships are geographically dispersed across all markets with no specific industry concentration. - The loans consist of various types including multi-use CRE, owner-occupied CRE, C&I, and construction development. - CFO David Kirkley noted that excluding one-time interest reversals, the NIM starting point is approximately 4.28%. - The bank expects loan and investment repricing to offset rising CD costs, provided deposit competition does not escalate significantly beyond current levels. - Management confirmed significant exposure to short-term rentals, primarily in New Orleans, but reported no apparent credit issues in that portfolio currently. - The bank has already received $5 million in paydowns and expects an additional $10 million in resolutions by early 2027. - Management is optimistic that nonperforming assets (NPAs) are nearing their peak, though further Fed rate hikes could place additional pressure on borrowers.

LAFAYETTE, La., Oct. 19, 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 third quarter of 2026. For the quarter, the Company reported net income of $10.1 million, or $1.28 per diluted common share ("diluted EPS"), down $1.5 million from $11.6 million, or $1.48 diluted EPS, for the second quarter of 2026. "Quarterly results demonstrated the resilience of our core earnings, with net interest income holding essentially stable despite credit related interest reversals and continued deposit pricing pressure," said John W. Bordelon, Chief Executive Officer of the Company and the Bank. "Although net interest margin declined five basis points to 4.19%, disciplined balance sheet management partially offset the impact of loans moving to nonaccrual status and higher funding cost. We remain focused on protecting capital, preserving liquidity and deploying resources in ways that support sustainable earnings and long-term shareholder value." "We moved promptly to recognize and address emerging credit issues during the quarter," said Darren E. Guidry, President of the Company and the Bank. "Six loan relationships totaling $19.5 million were placed on nonaccrual status, increasing criticized and nonperforming loans. Based on our current assessment, we do not anticipate sizable losses from these relationships. Our priorities remain disciplined underwriting, active portfolio management and measured balance sheet growth that produces appropriate risk adjusted returns." Third Quarter 2026 Highlights - Loans totaled $2.8 billion at September 30, 2026, down $4.0 million, or less than 1% (a decrease of 1% on an annualized basis), from June 30, 2026. - Deposits totaled $3.1 billion at September 30, 2026, down $15.4 million, or 0.5% (a decrease of 2% on an annualized basis), from June 30, 2026. Core deposits decreased $28.3 million, or 1.2% (a decrease of 5% on an annualized basis), during the third quarter of 2026 to $2.3 billion. - Net interest income in the third quarter of 2026 totaled $35.9 million, up $110,000, or less than 1%, from the prior quarter. - The net interest margin ("NIM") was 4.19% in the third quarter of 2026 compared to 4.24% in the second quarter of 2026. Credit related interest reversals and higher deposit costs were the primary headwinds, while higher interest-earning asset yields and funding mix provided partial offsets. Net interest income remained essentially stable at $35.9 million, demonstrating the earnings benefit of active balance sheet management. - Nonperforming assets totaled $53.7 million, or 1.49% of total assets, at September 30, 2026, compared to $39.2 million, or 1.09% of total assets, at June 30, 2026. The increase in nonperforming assets is primarily due to six loan relationships totaling $19.5 million which were moved to nonaccrual status, partially offset by payoffs and paydowns during the third quarter of 2026. - The Company recorded a $1.0 million provision to the allowance for loan losses in the third quarter of 2026, compared to a $762,000 provision in the second quarter of 2026. The increase primarily reflected higher reserves on individually analyzed loans, partially offset by the reduction in total loans. Loans Loans totaled $2.8 billion at September 30, 2026, down $4.0 million, or less than 1%, from June 30, 2026. The following table summarizes the changes in the Company's loan portfolio, net of unearned income, from June 30, 2026 through September 30, 2026. (dollars in thousands) | | 9/30/2026 | | 6/30/2026 | | Increase (Decrease) Real estate loans: | | | | | | | | One- to four-family first mortgage | | $ 469,700 | | $ 475,602 | | $ (5,902) | | (1) % Home equity loans and lines | | 91,279 | | 90,529 | | 750 | | 1 Commercial real estate | | 1,224,277 | | 1,215,828 | | 8,449 | | 1 Construction and land | | 303,735 | | 323,541 | | (19,806) | | (6) Multi-family residential | | 194,134 | | 197,624 | | (3,490) | | (2) Total real estate loans | | 2,283,125 | | 2,303,124 | | (19,999) | | (1) Other loans: | | | | | | | | Commercial and industrial | | 462,665 | | 446,352 | | 16,313 | | 4 Consumer | | 29,074 | | 29,414 | | (340) | | (1) Total other loans | | 491,739 | | 475,766 | | 15,973 | | 3 Total loans | | $ 2,774,864 | | $ 2,778,890 | | $ (4,026) | | — % The average loan yield was 6.40% for the third quarter of 2026, down 6 basis points from the second quarter of 2026. Loans transferred to nonaccrual status and related interest income reversals of approximately $862,000 reduced the quarterly loan yield by approximately 12 basis points. Loan pricing and portfolio mix recaptured approximately half of that pressure, limiting the reported decline to six basis points and supporting stable net interest income. Credit Quality and Allowance for Credit Losses Nonperforming assets ("NPAs") totaled $53.7 million, or 1.49% of total assets, at September 30, 2026, up $14.5 million, or 37%, from $39.2 million, or 1.09% of total assets, at June 30, 2026. The increase in NPAs during the third quarter of 2026 was primarily due to six loan relationships totaling $19.5 million placed on nonaccrual during the third quarter, partially offset by payoffs and paydowns. Management's timely recognition of these credits and ongoing workout efforts are intended to contain loss exposure. During the third quarter of 2026, the Company recorded net loan charge-offs of $586,000, compared to net loan charge-offs of $448,000 during the second quarter of 2026. The Company provisioned $1.0 million to the allowance for loan losses in the third quarter of 2026. At September 30, 2026, the allowance for loan losses totaled $34.4 million, or 1.24% of total loans, compared to $34.0 million, or 1.22% of total loans, at June 30, 2026. 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 September 30, 2026 and June 30, 2026. | September 30, 2026 (dollars in thousands) | | Pass | | Special Mention | | Substandard | | Total One- to four-family first mortgage | | $ 462,451 | | $ — | | $ 7,249 | | $ 469,700 Home equity loans and lines | | 90,766 | | — | | 513 | | 91,279 Commercial real estate | | 1,170,731 | | 14,422 | | 39,124 | | 1,224,277 Construction and land | | 288,674 | | 1,814 | | 13,247 | | 303,735 Multi-family residential | | 191,842 | | 1,304 | | 988 | | 194,134 Commercial and industrial | | 436,301 | | 4,643 | | 21,721 | | 462,665 Consumer | | 29,055 | | — | | 19 | | 29,074 Total | | $ 2,669,820 | | $ 22,183 | | $ 82,861 | | $ 2,774,864 | | | | | | | | | June 30, 2026 (dollars in thousands) | | Pass | | Special Mention | | Substandard | | Total One- to four-family first mortgage | | $ 468,132 | | $ — | | $ 7,470 | | $ 475,602 Home equity loans and lines | | 89,820 | | — | | 709 | | 90,529 Commercial real estate | | 1,162,045 | | 19,973 | | 33,810 | | 1,215,828 Construction and land | | 314,811 | | 1,826 | | 6,904 | | 323,541 Multi-family residential | | 194,864 | | 1,166 | | 1,594 | | 197,624 Commercial and industrial | | 424,029 | | 3,946 | | 18,377 | | 446,352 Consumer | | 29,389 | | — | | 25 | | 29,414 Total | | $ 2,683,090 | | $ 26,911 | | $ 68,889 | | $ 2,778,890 Investment Securities The Company's investment securities portfolio totaled $415.6 million at September 30, 2026, an increase of $6.5 million, or 2%, from June 30, 2026. At September 30, 2026, the Company had a net unrealized loss position on its investment securities of $36.5 million, compared to a net unrealized loss of $25.0 million at June 30, 2026. The Company's investment securities portfolio had an effective duration of 3.6 years and 3.4 years at September 30, 2026 and June 30, 2026, respectively. During the third quarter of 2026, the Company made securities purchases of $40.7 million, compared to $39.3 million during the second quarter of 2026. The Company had no securities sales during the third quarter of 2026 and second quarter of 2026. The following table summarizes the composition of the Company's investment securities portfolio at September 30, 2026. (dollars in thousands) | | Amortized Cost | | Fair Value Available for sale: | | | | U.S. agency mortgage-backed | | $ 341,618 | | $ 314,724 Collateralized mortgage obligations | | 43,090 | | 41,813 Municipal bonds | | 52,703 | | 45,116 U.S. government agency | | 9,636 | | 8,942 Corporate bonds | | 5,000 | | 5,000 Total available for sale | | $ 452,047 | | $ 415,595 Approximately 31% of the investment securities portfolio was pledged as of September 30, 2026 to secure public deposits and the discount window with the Federal Reserve. As of September 30, 2026 and June 30, 2026, the Company had $129.6 million and $139.9 million, respectively, of securities pledged to secure public deposits, and $572,000 and none, respectively, pledged to the Federal Reserve discount window. Deposits Total deposits were $3.1 billion at September 30, 2026, down $15.4 million, or less than 1%, from June 30, 2026. Core deposits or non-maturity deposits decreased $28.3 million, or 1%, during the third quarter of 2026 to $2.3 billion. The following table summarizes the changes in the Company's deposits from June 30, 2026 to September 30, 2026. (dollars in thousands) | | 9/30/2026 | | 6/30/2026 | | Increase (Decrease) Demand deposits | | $ 827,696 | | $ 835,118 | | $ (7,422) | | (1) % Savings | | 192,180 | | 197,412 | | (5,232) | | (3) Money market | | 585,742 | | 571,474 | | 14,268 | | 2 NOW | | 697,892 | | 727,839 | | (29,947) | | (4) Certificates of deposit | | 749,990 | | 737,040 | | 12,950 | | 2 Total deposits | | $ 3,053,500 | | $ 3,068,883 | | $ (15,383) | | (1) % The average rate on interest-bearing deposits increased 5 basis points from 2.28% for the second quarter of 2026 to 2.33% for the third quarter of 2026. At September 30, 2026, certificates of deposit maturing within the next 12 months totaled $729.4 million, or 97%, of total certificates of deposit. The total amounts of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $933.7 million at September 30, 2026 and $959.4 million at June 30, 2026. Public funds in excess of the FDIC insurance limits are fully collateralized. Net Interest Income Net interest income increased $110,000 to $35.9 million in the third quarter, even as NIM decreased 5 basis points from 4.24% for the second quarter of 2026 to 4.19% for the third quarter of 2026. The margin decline was primarily due to lower loan yields following the transfer of loans to nonaccrual status, which resulted in approximately $862,000 of interest income reversals, and an increase in funding cost for average interest-bearing liabilities during the quarter. The average cost of interest-bearing deposits increased by 5 basis points in the third quarter of 2026 compared to the second quarter of 2026. The increase in deposit costs reflects increases in deposit rates to remain competitive in the market. Average other interest-earning assets were $150.9 million for the third quarter of 2026, down $7.3 million, or 5%, from the second quarter of 2026, primarily due to a decrease in the average balance of cash and cash equivalents. Loan accretion income from acquired loans totaled $187,000 for the third quarter of 2026, down $14,000, or 7%, from the second quarter of 2026. Noninterest Income Noninterest income for the third quarter of 2026 totaled $4.2 million, up $282,000, or 7%, from the second quarter of 2026. The increase was related primarily to other income (up $190,000) and service fees and charges (up $105,000), which were partially offset by a decrease in gain on sale of loans, net (down $75,000), for the third quarter of 2026 compared to the second quarter of 2026. Noninterest Expense Noninterest expense for the third quarter of 2026 totaled $26.3 million, up $1.8 million, or 7%, from the second quarter of 2026. The increase was primarily related to foreclosed assets, net (up $1.7 million), and franchise and shares tax (up $192,000), which were partially offset by a decrease in other expenses (down $155,000) during the third quarter of 2026. Capital At September 30, 2026, shareholders' equity totaled $453.1 million, down $359,000, or less than 1%, compared to $453.5 million at June 30, 2026. The decrease was primarily due to the increase in accumulated other comprehensive loss on available for sale investment securities, which was partially offset by the Company's earnings of $10.1 million during the third quarter of 2026. Preliminary Tier 1 leverage capital and total risk-based capital ratios were 12.33% and 16.09%, respectively, at September 30, 2026, compared to 12.11% and 15.61%, respectively, at June 30, 2026. Dividend and Share Repurchases The Company announces that its Board of Directors declared a quarterly cash dividend on shares of its common stock of $0.32 per share payable on November 13, 2026, to shareholders of record as of November 2, 2026. The Company repurchased 350 shares of its common stock during the third quarter of 2026 at an average price per share of $69.34. An additional 382,820 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 $57.55 and $46.97, respectively, at September 30, 2026. Conference Call Executive management will host a conference call to discuss third quarter 2026 results on Tuesday, October 20, 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. | | Quarter Ended (dollars in thousands, except per share data) | | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 Reported net income | | $ 10,097 | | $ 11,615 | | $ 11,360 | | $ 11,411 | | $ 12,357 Add: Core deposit intangible amortization, net tax | | 165 | | 166 | | 185 | | 203 | | 213 Non-GAAP tangible income | | $ 10,262 | | $ 11,781 | | $ 11,545 | | $ 11,614 | | $ 12,570 | | | | | | | | | | Total assets | | $ 3,596,367 | | $ 3,603,193 | | $ 3,554,643 | | $ 3,492,626 | | $ 3,494,074 Less: Intangible assets | | 83,304 | | 83,513 | | 83,723 | | 83,957 | | 84,214 Non-GAAP tangible assets | | $ 3,513,063 | | $ 3,519,680 | | $ 3,470,920 | | $ 3,408,669 | | $ 3,409,860 | | | | | | | | | | Total shareholders' equity | | $ 453,098 | | $ 453,457 | | $ 444,410 | | $ 435,094 | | $ 423,044 Less: Intangible assets | | 83,304 | | 83,513 | | 83,723 | | 83,957 | | 84,214 Non-GAAP tangible shareholders' equity | | $ 369,794 | | $ 369,944 | | $ 360,687 | | $ 351,137 | | $ 338,830 | | | | | | | | | | Return on average equity | | 8.74 % | | 10.34 % | | 10.41 % | | 10.52 % | | 11.78 % Add: Average intangible assets | | 2.12 | | 2.54 | | 2.64 | | 2.79 | | 3.24 Non-GAAP return on average tangible common equity | | 10.86 % | | 12.88 % | | 13.05 % | | 13.31 % | | 15.02 % | | | | | | | | | | Common equity ratio | | 12.60 % | | 12.58 % | | 12.50 % | | 12.46 % | | 12.11 % Less: Intangible assets | | 2.07 | | 2.07 | | 2.11 | | 2.16 | | 2.17 Non-GAAP tangible common equity ratio | | 10.53 % | | 10.51 % | | 10.39 % | | 10.30 % | | 9.94 % | | | | | | | | | | Book value per share | | $ 57.55 | | $ 57.63 | | $ 56.73 | | $ 55.56 | | $ 54.05 Less: Intangible assets | | 10.58 | | 10.61 | | 10.69 | | 10.72 | | 10.76 Non-GAAP tangible book value per share | | $ 46.97 | | $ 47.02 | | $ 46.04 | | $ 44.84 | | $ 43.29 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. HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (dollars in thousands) | | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 Assets | | | | | | | | | | Cash and cash equivalents | | $ 179,053 | | $ 188,224 | | $ 223,484 | | $ 141,605 | | $ 189,324 Investment securities available for sale, at fair value | | 415,595 | | 408,582 | | 385,729 | | 391,448 | | 383,340 Investment securities held to maturity | | — | | 530 | | 530 | | 1,065 | | 1,065 Mortgage loans held for sale | | 774 | | 1,566 | | 1,558 | | 1,558 | | 1,932 Loans, net of unearned income | | 2,774,864 | | 2,778,890 | | 2,728,146 | | 2,744,023 | | 2,705,895 Allowance for loan losses | | (34,427) | | (33,994) | | (33,680) | | (33,142) | | (32,827) Total loans, net of allowance for loan losses | | 2,740,437 | | 2,744,896 | | 2,694,466 | | 2,710,881 | | 2,673,068 Office properties and equipment, net | | 51,467 | | 51,538 | | 50,502 | | 48,995 | | 45,223 Cash surrender value of bank-owned life insurance | | 50,426 | | 50,131 | | 49,842 | | 49,557 | | 49,269 Goodwill and core deposit intangibles | | 83,304 | | 83,513 | | 83,723 | | 83,957 | | 84,214 Accrued interest receivable and other assets | | 75,311 | | 74,213 | | 64,809 | | 63,560 | | 66,639 Total Assets | | $ 3,596,367 | | $ 3,603,193 | | $ 3,554,643 | | $ 3,492,626 | | $ 3,494,074 | | | | | | | | | | Liabilities | | | | | | | | | | Deposits | | $ 3,053,500 | | $ 3,068,883 | | $ 3,026,781 | | $ 2,972,806 | | $ 2,975,503 Other borrowings | | — | | — | | — | | — | | 5,539 Subordinated debt, net of issuance cost | | 54,838 | | 54,784 | | 54,729 | | 54,675 | | 54,621 Federal Home Loan Bank advances | | — | | — | | — | | 3,024 | | 3,059 Accrued interest payable and other liabilities | | 34,931 | | 26,069 | | 28,723 | | 27,027 | | 32,308 Total Liabilities | | 3,143,269 | | 3,149,736 | | 3,110,233 | | 3,057,532 | | 3,071,030 | | | | | | | | | | Shareholders' Equity | | | | | | | | | | Common stock | | 79 | | 79 | | 78 | | 78 | | 78 Additional paid-in capital | | 172,362 | | 171,234 | | 169,995 | | 168,963 | | 168,016 Common stock acquired by benefit plans | | (714) | | (803) | | (893) | | (982) | | (1,071) Retained earnings | | 309,679 | | 302,171 | | 293,554 | | 284,834 | | 275,912 Accumulated other comprehensive loss | | (28,308) | | (19,224) | | (18,324) | | (17,799) | | (19,891) Total Shareholders' Equity | | 453,098 | | 453,457 | | 444,410 | | 435,094 | | 423,044 Total Liabilities and Shareholders' Equity | | $ 3,596,367 | | $ 3,603,193 | | $ 3,554,643 | | $ 3,492,626 | | $ 3,494,074 HOME BANCORP, INC. AND SUBSIDIARY CONDENSED STATEMENTS OF INCOME (Unaudited) | | Three Months Ended | | Nine Months Ended (dollars in thousands, except per share data) | | 9/30/2026 | | 6/30/2026 | | 9/30/2025 | | 9/30/2026 | | 9/30/2025 Interest Income | | | | | | | | | | Loans, including fees | | $ 45,236 | | $ 45,001 | | $ 45,607 | | $ 133,954 | | $ 134,926 Investment securities | | 3,134 | | 2,804 | | 2,504 | | 8,498 | | 7,764 Other investments and deposits | | 1,373 | | 1,414 | | 1,111 | | 4,250 | | 2,362 Total interest income | | 49,743 | | 49,219 | | 49,222 | | 146,702 | | 145,052 Interest Expense | | | | | | | | | | Deposits | | 12,984 | | 12,569 | | 13,805 | | 37,959 | | 39,569 Other borrowings | | — | | — | | 54 | | — | | 160 Subordinated debt expense | | 844 | | 845 | | 845 | | 2,534 | | 2,534 Federal Home Loan Bank advances | | — | | — | | 412 | | 7 | | 3,583 Total interest expense | | 13,828 | | 13,414 | | 15,116 | | 40,500 | | 45,846 Net interest income | | 35,915 | | 35,805 | | 34,106 | | 106,202 | | 99,206 Provision (reversal) for loan losses | | 1,019 | | 762 | | (229) | | 2,703 | | 654 Net interest income after provision for loan losses | | 34,896 | | 35,043 | | 34,335 | | 103,499 | | 98,552 Noninterest Income | | | | | | | | | | Service fees and charges | | 1,512 | | 1,407 | | 1,408 | | 4,356 | | 4,062 Bank card fees | | 1,773 | | 1,718 | | 1,646 | | 5,085 | | 4,974 Gain on sale of loans, net | | 154 | | 229 | | 144 | | 613 | | 635 Income from bank-owned life insurance | | 295 | | 289 | | 288 | | 869 | | 848 (Loss) gain on sale of assets, net | | — | | (1) | | — | | (1) | | 7 Other income | | 467 | | 277 | | 252 | | 936 | | 937 Total noninterest income | | 4,201 | | 3,919 | | 3,738 | | 11,858 | | 11,463 Noninterest Expense | | | | | | | | | | Compensation and benefits | | 15,156 | | 15,036 | | 13,531 | | 43,906 | | 39,505 Occupancy | | 2,463 | | 2,614 | | 2,544 | | 7,506 | | 7,618 Marketing and advertising | | 435 | | 522 | | 515 | | 1,451 | | 1,405 Data processing and communication | | 2,834 | | 2,655 | | 2,556 | | 8,118 | | 7,826 Professional fees | | 422 | | 417 | | 406 | | 1,240 | | 1,207 Forms, printing and supplies | | 178 | | 179 | | 175 | | 576 | | 578 Franchise and shares tax | | 532 | | 340 | | 475 | | 1,212 | | 1,434 Regulatory fees | | 471 | | 460 | | 459 | | 1,393 | | 1,477 Foreclosed assets, net | | 2,042 | | 385 | | 377 | | 2,481 | | 1,023 Amortization of acquisition intangible | | 209 | | 210 | | 268 | | 653 | | 830 Reversal for credit losses on unfunded commitments | | — | | — | | — | | — | | (970) Other expenses | | 1,581 | | 1,736 | | 1,225 | | 5,281 | | 4,584 Total noninterest expense | | 26,323 | | 24,554 | | 22,531 | | 73,817 | | 66,517 Income before income tax expense | | 12,774 | | 14,408 | | 15,542 | | 41,540 | | 43,498 Income tax expense | | 2,677 | | 2,793 | | 3,185 | | 8,468 | | 8,847 Net income | | $ 10,097 | | $ 11,615 | | $ 12,357 | | $ 33,072 | | $ 34,651 | | | | | | | | | | Earnings per share - basic | | $ 1.30 | | $ 1.49 | | $ 1.60 | | $ 4.26 | | $ 4.45 | | | | | | | | | | Earnings per share - diluted | | $ 1.28 | | $ 1.48 | | $ 1.59 | | $ 4.21 | | $ 4.41 | | | | | | | | | | Cash dividends declared per common share | | $ 0.32 | | $ 0.31 | | $ 0.29 | | $ 0.94 | | $ 0.83 HOME BANCORP, INC. AND SUBSIDIARY SUMMARY FINANCIAL INFORMATION (Unaudited) | | Three Months Ended | | Nine Months Ended (dollars in thousands, except per share data) | | 9/30/2026 | | 6/30/2026 | | 9/30/2025 | | 9/30/2026 | | 9/30/2025 EARNINGS DATA | | | | | | | | | | Total interest income | | $ 49,743 | | $ 49,219 | | $ 49,222 | | $ 146,702 | | $ 145,052 Total interest expense | | 13,828 | | 13,414 | | 15,116 | | 40,500 | | 45,846 Net interest income | | 35,915 | | 35,805 | | 34,106 | | 106,202 | | 99,206 Provision for loan losses | | 1,019 | | 762 | | (229) | | 2,703 | | 654 Total noninterest income | | 4,201 | | 3,919 | | 3,738 | | 11,858 | | 11,463 Total noninterest expense | | 26,323 | | 24,554 | | 22,531 | | 73,817 | | 66,517 Income tax expense | | 2,677 | | 2,793 | | 3,185 | | 8,468 | | 8,847 Net income | | $ 10,097 | | $ 11,615 | | $ 12,357 | | $ 33,072 | | $ 34,651 | | | | | | | | | | AVERAGE BALANCE SHEET DATA | | | | | | | | | | Total assets | | $ 3,588,774 | | $ 3,564,832 | | $ 3,467,070 | | $ 3,562,136 | | $ 3,463,833 Total interest-earning assets | | 3,363,094 | | 3,341,316 | | 3,255,291 | | 3,338,553 | | 3,252,602 Total loans | | 2,773,575 | | 2,762,370 | | 2,743,695 | | 2,757,008 | | 2,750,985 Total interest-bearing deposits | | 2,211,365 | | 2,208,807 | | 2,128,540 | | 2,205,625 | | 2,085,330 Total interest-bearing liabilities | | 2,266,175 | | 2,263,561 | | 2,228,117 | | 2,261,009 | | 2,256,278 Total deposits | | 3,043,559 | | 3,029,628 | | 2,918,938 | | 3,025,372 | | 2,852,176 Total shareholders' equity | | 458,174 | | 450,365 | | 416,239 | | 450,440 | | 408,083 | | | | | | | | | | PER SHARE DATA | | | | | | | | | | Earnings per share - basic | | $ 1.30 | | $ 1.49 | | $ 1.60 | | $ 4.26 | | $ 4.45 Earnings per share - diluted | | 1.28 | | 1.48 | | 1.59 | | 4.21 | | 4.41 Book value at period end | | 57.55 | | 57.63 | | 54.05 | | 57.55 | | 54.05 Tangible book value at period end | | 46.97 | | 47.02 | | 43.29 | | 46.97 | | 43.29 Shares outstanding at period end | | 7,873,701 | | 7,868,139 | | 7,827,481 | | 7,873,701 | | 7,827,481 Weighted average shares outstanding | | | | | | | | | | Basic | | 7,795,970 | | 7,768,468 | | 7,712,707 | | 7,768,603 | | 7,789,001 Diluted | | 7,874,209 | | 7,853,358 | | 7,782,979 | | 7,851,618 | | 7,862,712 | | | | | | | | | | SELECTED RATIOS (1) | | | | | | | | | | Return on average assets | | 1.12 % | | 1.31 % | | 1.41 % | | 1.24 % | | 1.34 % Return on average equity | | 8.74 | | 10.34 | | 11.78 | | 9.82 | | 11.35 Common equity ratio | | 12.60 | | 12.58 | | 12.11 | | 12.60 | | 12.11 Efficiency ratio (2) | | 65.62 | | 61.81 | | 59.54 | | 62.52 | | 60.10 Average equity to average assets | | 12.77 | | 12.63 | | 12.01 | | 12.65 | | 11.78 Tier 1 leverage capital ratio (3) | | 12.33 | | 12.11 | | 11.80 | | 12.33 | | 11.80 Total risk-based capital ratio (3) | | 16.09 | | 15.61 | | 15.24 | | 16.09 | | 15.24 Net interest margin (4) | | 4.19 | | 4.24 | | 4.10 | | 4.20 | | 4.02 | | | | | | | | | | SELECTED NON-GAAP RATIOS (1) | | | | | | | | | | Tangible common equity ratio (5) | | 10.53 % | | 10.51 % | | 9.94 % | | 10.53 % | | 9.94 % Return on average tangible common equity (6) | | 10.86 | | 12.88 | | 15.02 | | 12.24 | | 14.59 (1) | With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods. (2) | The efficiency ratio represents noninterest expense as a percentage of total revenues. Total revenues is the sum of net interest income and noninterest income. (3) | Capital ratios are preliminary end-of-period ratios for the Bank only and are subject to change. (4) | Net interest margin represents net interest income as a percentage of average interest-earning assets. Taxable equivalent yields are calculated using a marginal tax rate of 21%. (5) | Tangible common equity ratio is common shareholders' equity less intangible assets divided by total assets less intangible assets. See "Non-GAAP Reconciliation" for additional information. (6) | Return on average tangible common equity is net income plus amortization of core deposit intangible, net of taxes, divided by average common shareholders' equity less average intangible assets. See "Non-GAAP Reconciliation" for additional information. HOME BANCORP, INC. AND SUBSIDIARY Consolidated Net Interest Margin (Unaudited) | | Three Months Ended | | 9/30/2026 | | 6/30/2026 | | 9/30/2025 (dollars in thousands) | | Average Balance | | Interest | | Average Yield/ Rate | | Average Balance | | Interest | | Average Yield/ Rate | | Average Balance | | Interest | | Average Yield/ Rate Interest-earning assets: | | | | | | | | | | | | | | | | | | Loans receivable | | $ 2,773,575 | | $ 45,236 | | 6.40 % | | $ 2,762,370 | | $ 45,001 | | 6.46 % | | $ 2,743,695 | | $ 45,607 | | 6.53 % Investment securities (TE)(1) | | 438,596 | | 3,134 | | 2.87 | | 420,771 | | 2,804 | | 2.68 | | 411,889 | | 2,504 | | 2.45 Other interest-earning assets | | 150,923 | | 1,373 | | 3.61 | | 158,175 | | 1,414 | | 3.59 | | 99,707 | | 1,111 | | 4.42 Total interest-earning assets | | $ 3,363,094 | | $ 49,743 | | 5.82 % | | $ 3,341,316 | | $ 49,219 | | 5.85 % | | $ 3,255,291 | | $ 49,222 | | 5.95 % Interest-bearing liabilities: | | | | | | | | | | | | | | | | | | Deposits: | | | | | | | | | | | | | | | | | | Savings, checking, and money market | | $ 1,467,688 | | $ 6,524 | | 1.76 % | | $ 1,471,806 | | $ 6,297 | | 1.72 % | | $ 1,301,888 | | $ 5,783 | | 1.76 % Certificates of deposit | | 743,677 | | 6,460 | | 3.45 | | 737,001 | | 6,272 | | 3.41 | | 826,652 | | 8,022 | | 3.85 Total interest-bearing deposits | | 2,211,365 | | 12,984 | | 2.33 | | 2,208,807 | | 12,569 | | 2.28 | | 2,128,540 | | 13,805 | | 2.57 Other borrowings | | — | | — | | — | | — | | — | | — | | 5,539 | | 54 | | 3.80 Subordinated debt | | 54,810 | | 844 | | 6.17 | | 54,754 | | 845 | | 6.17 | | 54,593 | | 845 | | 6.19 FHLB advances | | — | | — | | — | | — | | — | | — | | 39,445 | | 412 | | 4.12 Total interest-bearing liabilities | | $ 2,266,175 | | $ 13,828 | | 2.42 % | | $ 2,263,561 | | $ 13,414 | | 2.38 % | | $ 2,228,117 | | $ 15,116 | | 2.69 % Noninterest-bearing deposits | | $ 832,194 | | | | | | $ 820,821 | | | | | | $ 790,398 | | | | Net interest spread (TE)(1) | | | | | | 3.40 % | | | | | | 3.47 % | | | | | | 3.26 % Net interest margin (TE)(1) | | | | | | 4.19 % | | | | | | 4.24 % | | | | | | 4.10 % (1) Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%. HOME BANCORP, INC. AND SUBSIDIARY Consolidated Net Interest Margin (Unaudited) | | Nine Months Ended | | 9/30/2026 | | 9/30/2025 (dollars in thousands) | | Average Balance | | Interest | | Average Yield/ Rate | | Average Balance | | Interest | | Average Yield/ Rate Interest-earning assets: | | | | | | | | | | | | Loans receivable | | $ 2,757,008 | | $ 133,954 | | 6.42 % | | $ 2,750,985 | | $ 134,926 | | 6.49 % Investment securities (TE)(1) | | 422,340 | | 8,498 | | 2.70 | | 425,915 | | 7,764 | | 2.45 Other interest-earning assets | | 159,205 | | 4,250 | | 3.57 | | 75,702 | | 2,362 | | 4.17 Total interest-earning assets | | $ 3,338,553 | | $ 146,702 | | 5.82 % | | $ 3,252,602 | | $ 145,052 | | 5.90 % Interest-bearing liabilities: | | | | | | | | | | | | Deposits: | | | | | | | | | | | | Savings, checking, and money market | | $ 1,457,177 | | $ 18,629 | | 1.71 % | | $ 1,301,660 | | $ 16,715 | | 1.72 % Certificates of deposit | | 748,448 | | 19,330 | | 3.45 | | 783,670 | | 22,854 | | 3.90 Total interest-bearing deposits | | 2,205,625 | | 37,959 | | 2.30 | | 2,085,330 | | 39,569 | | 2.54 Other borrowings | | — | | — | | — | | 5,550 | | 160 | | 3.84 Subordinated debt | | 54,755 | | 2,534 | | 6.17 | | 54,540 | | 2,534 | | 6.20 FHLB advances | | 629 | | 7 | | 1.51 | | 110,858 | | 3,583 | | 4.27 Total interest-bearing liabilities | | $ 2,261,009 | | $ 40,500 | | 2.39 % | | $ 2,256,278 | | $ 45,846 | | 2.71 % Noninterest-bearing deposits | | $ 819,747 | | | | | | $ 766,846 | | | | Net interest spread (TE)(1) | | | | | | 3.43 % | | | | | | 3.19 % Net interest margin (TE)(1) | | | | | | 4.20 % | | | | | | 4.02 % (1) | Taxable equivalent (TE) amounts are calculated using a federal income tax rate of 21%. HOME BANCORP, INC. AND SUBSIDIARY SUMMARY CREDIT QUALITY INFORMATION (Unaudited) | | Three Months Ended | | 9/30/2026 | | 6/30/2026 | | 3/31/2026 | | 12/31/2025 | | 9/30/2025 CREDIT QUALITY (1) | | | | | | | | | | Nonaccrual loans: | | | | | | | | | | One- to four-family first mortgage | | $ 6,792 | | $ 6,423 | | $ 8,337 | | $ 6,531 | | $ 6,402 Home equity loans and lines | | 513 | | 709 | | 542 | | 531 | | 1,008 Commercial real estate | | 22,354 | | 10,092 | | 10,837 | | 9,011 | | 10,016 Construction and land | | 4,808 | | 5,277 | | 12,812 | | 15,367 | | 9,847 Multi-family residential | | 679 | | 1,281 | | 1,281 | | 1,281 | | 973 Commercial and industrial | | 6,721 | | 2,585 | | 1,945 | | 1,344 | | 1,161 Consumer | | 19 | | 25 | | 41 | | 46 | | 60 Total nonaccrual loans | | $ 41,886 | | $ 26,392 | | $ 35,795 | | $ 34,111 | | $ 29,467 Accruing loans 90 days or more past due | | 282 | | 32 | | 14 | | 65 | | 55 Total nonperforming loans | | 42,168 | | 26,424 | | 35,809 | | 34,176 | | 29,522 Foreclosed assets and ORE | | 11,568 | | 12,786 | | 4,093 | | 1,929 | | 1,384 Total nonperforming assets | | $ 53,736 | | $ 39,210 | | $ 39,902 | | $ 36,105 | | $ 30,906 | | | | | | | | | | Nonperforming assets to total assets | | 1.49 % | | 1.09 % | | 1.12 % | | 1.03 % | | 0.88 % Nonperforming loans to total assets | | 1.17 | | 0.73 | | 1.01 | | 0.98 | | 0.84 Nonperforming loans to total loans | | 1.52 | | 0.95 | | 1.31 | | 1.25 | | 1.09 | | | | | | | | | | ALLOWANCE FOR CREDIT LOSSES | | | | | | | | | | Allowance for loan losses: | | | | | | | | | | Beginning balance | | $ 33,994 | | $ 33,680 | | $ 33,142 | | $ 32,827 | | $ 33,432 Provision (reversal) for loan losses | | 1,019 | | 762 | | 922 | | 480 | | (229) Charge-offs | | (653) | | (564) | | (413) | | (189) | | (488) Recoveries | | 67 | | 116 | | 29 | | 24 | | 112 Net charge-offs | | (586) | | (448) | | (384) | | (165) | | (376) Ending balance | | $ 34,427 | | $ 33,994 | | $ 33,680 | | $ 33,142 | | $ 32,827 | | | | | | | | | | Reserve for unfunded lending commitments(2) | | | | | | | | | | Beginning balance | | $ 1,625 | | $ 1,625 | | $ 1,625 | | $ 1,730 | | $ 1,730 Reversal for losses on unfunded lending commitments | | — | | — | | — | | (105) | | — Ending balance | | $ 1,625 | | $ 1,625 | | $ 1,625 | | $ 1,625 | | $ 1,730 Total allowance for credit losses | | 36,052 | | 35,619 | | 35,305 | | 34,767 | | 34,557 | | | | | | | | | | Total loans | | $ 2,774,864 | | $ 2,778,890 | | $ 2,728,146 | | $ 2,744,023 | | $ 2,705,895 Total unfunded commitments | | 553,656 | | 520,729 | | 533,398 | | 509,331 | | 509,709 | | | | | | | | | | Allowance for loan losses to nonperforming assets | | 64.07 % | | 86.70 % | | 84.41 % | | 91.79 % | | 106.22 % Allowance for loan losses to nonperforming loans | | 81.64 | | 128.65 | | 94.05 | | 96.97 | | 111.20 Allowance for loan losses to total loans | | 1.24 | | 1.22 | | 1.23 | | 1.21 | | 1.21 Allowance for credit losses to total loans | | 1.30 | | 1.28 | | 1.29 | | 1.27 | | 1.28 | | | | | | | | | | Year-to-date loan charge-offs | | $ (1,630) | | $ (977) | | $ (413) | | $ (1,363) | | $ (1,174) Year-to-date loan recoveries | | 212 | | 145 | | 29 | | 455 | | 431 Year-to-date net loan charge-offs | | $ (1,418) | | $ (832) | | $ (384) | | $ (908) | | $ (743) Annualized YTD net loan charge-offs to average loans | | (0.07) % | | (0.06) % | | (0.06) % | | (0.03) % | | (0.04) % (1) | It is our policy to cease accruing interest on loans 90 days or more past due, with certain limited exceptions. Nonperforming assets consist of nonperforming loans, foreclosed assets and surplus real estate (ORE). Foreclosed assets consist of assets acquired through foreclosure or acceptance of title in-lieu of foreclosure. ORE consists of closed or unused bank buildings. (2) | The allowance for unfunded lending commitments is recorded within accrued interest payable and other liabilities on the Consolidated Statements of Financial Condition. View original content to download multimedia:https://www.prnewswire.com/news-releases/home-bancorp-inc-announces-2026-third-quarter-results-and-declares-quarterly-dividend-302913086.html

Home Bancorp (HBCP) came out with quarterly earnings of $1.28 per share, missing the Zacks Consensus Estimate of $1.51 per share. This compares to earnings of $1.59 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -15.23%. A quarter ago, it was expected that this financial holding company would post earnings of $1.46 per share when it actually produced earnings of $1.48, delivering a surprise of +1.37%. Over the last four quarters, the company has surpassed consensus EPS estimates three times. Home Bancorp, which belongs to the Zacks Banks - Southeast industry, posted revenues of $40.12 million for the quarter ended September 2026, missing the Zacks Consensus Estimate by 0.12%. This compares to year-ago revenues of $37.84 million. The company has topped consensus revenue estimates three times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Home Bancorp shares have added about 14% since the beginning of the year versus the S&P 500's gain of 11.9%. While Home Bancorp has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Home Bancorp was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.54 on $40.67 million in revenues for the coming quarter and $5.98 on $158.83 million in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Banks - Southeast is currently in the top 33% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Another stock from the same industry, First Bancorp (FBNC), has yet to report results for the quarter ended September 2026. This bank holding company for First Bank is expected to post quarterly earnings of $1.18 per share in its upcoming report, which represents a year-over-year change of +16.8%. The consensus EPS estimate for the quarter has been revised 1.7% higher over the last 30 days to the current level. First Bancorp's revenues are expected to be $129.26 million, up 10% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Home Bancorp, Inc. (HBCP) : Free Stock Analysis Report First Bancorp (FBNC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

For the quarter ended September 2026, Home Bancorp (HBCP) reported revenue of $40.12 million, up 6% over the same period last year. EPS came in at $1.28, compared to $1.59 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $40.17 million, representing a surprise of -0.12%. The company delivered an EPS surprise of -15.23%, with the consensus EPS estimate being $1.51. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately. Here is how Home Bancorp performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: - Efficiency Ratio: 65.6% versus 61.2% estimated by three analysts on average. - Net Interest Margin: 4.2% versus 4.3% estimated by three analysts on average. - Annualized YTD net loan recoveries (charge-offs) to average loans: -0.1% versus 0.1% estimated by two analysts on average. - Total Average Interest-Earning Assets: $3.36 billion versus the two-analyst average estimate of $3.38 billion. - Total nonperforming assets: $53.74 million versus the two-analyst average estimate of $37.78 million. - Total nonperforming loans: $42.17 million versus $26.58 million estimated by two analysts on average. - Net Interest Income: $35.92 million compared to the $36.23 million average estimate based on three analysts. - Total Noninterest Income: $4.2 million versus the three-analyst average estimate of $3.94 million. - Gain on sale of loans, net: $0.15 million versus $0.34 million estimated by two analysts on average. View all Key Company Metrics for Home Bancorp here>>> Shares of Home Bancorp have returned -3.9% over the past month versus the Zacks S&P 500 composite's +1.5% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Home Bancorp, Inc. (HBCP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

In its upcoming report, Home Bancorp (HBCP) is predicted by Wall Street analysts to post quarterly earnings of $1.51 per share, reflecting a decline of 5% compared to the same period last year. Revenues are forecasted to be $40.17 million, representing a year-over-year increase of 6.1%. Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Before a company reveals its earnings, it is vital to take into account any changes in earnings projections. These revisions play a pivotal role in predicting the possible reactions of investors toward the stock. Multiple empirical studies have consistently shown a strong association between trends in earnings estimates and the short-term price movements of a stock. While investors usually depend on consensus earnings and revenue estimates to assess the business performance for the quarter, delving into analysts' forecasts for certain key metrics often provides a more comprehensive understanding. Given this perspective, it's time to examine the average forecasts of specific Home Bancorp metrics that are routinely monitored and predicted by Wall Street analysts. Analysts predict that the 'Efficiency Ratio' will reach 61.2%. The estimate is in contrast to the year-ago figure of 59.5%. Based on the collective assessment of analysts, 'Net Interest Margin' should arrive at 4.3%. Compared to the current estimate, the company reported 4.1% in the same quarter of the previous year. The average prediction of analysts places 'Total Average Interest-Earning Assets' at $3.38 billion. Compared to the present estimate, the company reported $3.26 billion in the same quarter last year. Analysts forecast 'Total nonperforming assets' to reach $37.78 million. Compared to the current estimate, the company reported $30.91 million in the same quarter of the previous year. The consensus estimate for 'Total nonperforming loans' stands at $26.58 million. Compared to the current estimate, the company reported $29.52 million in the same quarter of the previous year. The consensus among analysts is that 'Net Interest Income' will reach $36.23 million. Compared to the current estimate, the company reported $34.11 million in the same quarter of the previous year. It is projected by analysts that the 'Total Noninterest Income' will reach $3.94 million. The estimate compares to the year-ago value of $3.74 million. View all Key Company Metrics for Home Bancorp here>>> Shares of Home Bancorp have demonstrated returns of -5.6% over the past month compared to the Zacks S&P 500 composite's +2.1% change. With a Zacks Rank #3 (Hold), HBCP is expected to mirror the overall market performance in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> . Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Home Bancorp, Inc. (HBCP) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research