Home Bancorp, Inc.

Home Bancorp reported second-quarter net income of $11.6 million, or $1.48 per diluted share. EPS was up 2% sequentially and up from $1.46 a year ago. Net interest income rose to a record $35.8 million, up $1.3 million from Q1 and $2.5 million from a year ago, while net interest margin expanded 8 basis points to 4.24%. Return on assets increased to 1.31%. Loans grew $50.7 million in the quarter, and total deposits increased $42.1 million; core deposits rose $46.6 million and non-interest-bearing deposits were 27% of total deposits. Non-performing loans declined to $26.4 million, or 95 basis points of total loans, and non-performing assets were $39.2 million, or 1.09% of total assets. The company provisioned $762,000, and the allowance for loan losses was $34 million, or 1.22% of total loans. Non-interest income was $3.9 million and non-interest expense was $24.6 million. Forward guidance: management expects mid-single-digit loan growth in the back half of the year, quarterly non-interest income of $3.8 million-$4.1 million, and non-interest expense of $24 million-$24.8 million over the next several quarters.

John Bordelon framed the quarter as evidence that Home Bancorp’s balance-sheet strategy is working, highlighting higher yields, stable funding costs, and strong core deposits. He also emphasized a leadership transition, saying the new president structure is intended to sustain the bank’s next phase of growth. His tone was constructive but measured, especially on loan demand and credit cleanup, where he noted timing of customer decisions remains difficult and some problem loans will come off the balance sheet by year-end.

David Kirkley focused on the drivers behind the improved margin and earnings, pointing to loan yields rising to 6.46%, a flat 2.38% cost of interest-bearing liabilities, and a lower average cost of interest-bearing deposits at 2.28%. He said the deposit mix and repricing of CDs helped lower deposit costs by 37 basis points from the recent peak, though he does not expect further material declines. On capital and shareholder returns, he cited tangible book value per share of $47.02, a Tier 1 leverage ratio of 12.1%, a total risk-based capital ratio of 15.6%, and a quarterly dividend increased to $0.32 per share.

Analysts focused on the sustainability of margin expansion, loan growth, capital deployment, and the path of problem assets. Management said NIM should still rise by a couple of basis points in Q3 and a little into Q4, with moderation likely after Q4 and into Q1 2027; they also said the mid-single-digit loan growth guide applies to the back half of the year, not the full year. On capital, management said M&A remains the primary use of excess capital, with buybacks viewed selectively and a 5.75% subordinated debt issue callable in 2027 as another possible lever. Darren Guidry said special assets should improve by more than $30 million by year-end, including about $22 million of special mention resolutions and more than $4 million of substandard resolutions, which should help reduce risk ratings and NPAs.