#United States #Dividend #Lafayette #Q2 2025 #Home Bancorp

Home Bancorp, Inc. Announces Strong Second Quarter Results and Dividend Increase

Home Bancorp, Inc. (Nasdaq: "HBCP"), the parent company of Home Bank, N.A., has reported impressive financial results for the second quarter of 2025. The company has registered a net income of $11.3 million, or $1.45 per diluted share, reflecting an increase from the previous quarter. This rise in earnings marks a significant improvement, bolstered by growth in loans and deposits over the past three months.

In a statement, John W. Bordelon, the President and CEO, expressed satisfaction with the bank's performance as it celebratesits 117th anniversary.

“We are pleased to report that net interest margin remains stable and continues to leverage our strong position within the market,” said Bordelon.

Financial Highlights

As of June 30, 2025, the bank has several noteworthy statistics:

• - Total loans have reached $2.8 billion, an increase of $17.3 million, or 0.6% since March 31, 2025.
• - Total deposits rose to $2.9 billion, an upward movement of $81 million, reflecting an annualized growth of 11%.
• - The net interest income stands at $33.4 million, marking a 5% increase from the previous quarter.
• - The net interest margin has improved to 4.04% compared to 3.91% earlier this year.

Despite a slight increase in nonperforming and criticized loans, the company has managed these challenges effectively, maintaining a solid allowance for loan losses at 1.21% of total loans. This demonstrates their ongoing commitment to sustainable growth and risk management.

Loan Portfolio and Credit Quality

The bank's loan portfolio has seen notable changes:

• - One-to-four-family first mortgage loans slightly decreased by $211, indicating strong market competition.
• - Home equity loans increased by 5%, reflecting a strategic focus on such lending.
• - Commercial real estate loans grew significantly, contributing positively to the overall increase in loans, although there were declines in construction and land loans.

Credit Risk Management

As overall loan performance improved, the increase in nonperforming assets to $25.4 million (0.73% of assets) has been largely managed. The bank attributes this increase mainly to four specific loan relationships moved to non-accrual status. Moreover, adequate provisions are in place to cover potential losses, enhancing shareholder confidence.

Investment and Capital Strategies

Home Bancorp has actively adjusted its investment securities portfolio, now valued at $394.5 million. Despite a slight drop, they have strategically increased security purchases, ensuring they adapt to evolving market conditions.

The continued effort in maintaining a solid capital base is evident with the quarter ending shareholders' equity at $408.8 million, up $6 million from the first quarter. Their Tier 1 leverage capital ratio was reported at 11.47%, underscoring strong capital management.

Attractive Dividend for Shareholders

In light of the robust financial performance, the board announced a quarterly cash dividend increase to $0.29 per share to be paid on August 15, 2025. This is an encouraging development for shareholders indicating the company’s strong performance and commitment to returning value to investors.

Upcoming Conference Call

To discuss these results further, Home Bancorp will host a conference call on July 22, 2025. Shareholders and interested parties are encouraged to participate, ensuring transparent communication regarding the company’s financial outlook and future strategies.

In summary, Home Bancorp, Inc. reflects a solid trajectory in financial health and strategic positioning in the banking sector. With a history dating back over a century, it remains dedicated to providing outstanding service to its customers while ensuring robust returns for its shareholders.