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Home Bancorp, Inc. Announces Q1 Results and Dividend Declaration

Home Bancorp, Inc. (Nasdaq: HBCP), the parent company of Home Bank, N.A., has shared its financial insights for the first quarter of 2026. With a determination to maintain a healthy financial portfolio amidst market challenges, the company has reported a net income of $11.4 million for the quarter, translating to $1.45 per diluted share. This figure is slightly lower than the previous quarter's net income of $11.4 million, which was reported at $1.46 per diluted share.

Follow-up from the company’s President and CEO, John W. Bordelon, highlighted the opening of a new full-service location in Tomball, Texas this March. He expressed satisfaction with the first quarter's financial achievements despite a decrease in loan production, attributing successful deposit growth to a reduced loan-to-deposit ratio, which now stands at 90%. This shift indicates that while lending may have slowed, consumers continue to trust in Home Bank for their deposit needs.

The company's robust financial metrics were underscored with a Return on Assets (ROA) increase to 1.30% and a Net Interest Margin (NIM) expansion of 4.16% for the quarter. Although the company faced an increase in nonperforming and criticized loans, leadership remains optimistic about minimizing potential losses through diligent loan management strategies.

Key Financial Highlights

• - Loans: Total loans numbered $2.7 billion on March 31, 2026, a slight decrease of 0.6% (or $15.9 million) from $2.744 billion on December 31, 2025.
• - Deposits: The company experienced a positive trend with total deposits reaching $3.0 billion, an increase of $54 million (or 1.8%) since the end of 2025. Notably, core deposits surged by $118.1 million, reflecting a solid commitment from customers amidst a competitive banking environment.
• - Net Interest Income: The bank reported a net interest income of $34.5 million, which marks a 1% increase from the previous quarter. Alongside a growing interest income, the average loan yield was recorded at 6.41%, down by a narrow 3 basis points.
• - Nonperforming Assets: As of March 31, 2026, nonperforming assets totaled $39.9 million, accounting for 1.12% of total assets. This increase was predominantly driven by a few loan relationships moving to nonaccrual status.

Credit Quality and Loan Losses

Home Bancorp's proactive approach in managing its loan quality is reflected in its allowance for loan losses, which rose to $33.7 million, representing 1.23% of total loans. The rationale for this increase stemmed from the reviewed credit quality dynamics and the anticipated economic trends impacting borrowers.

Proceeding to dividends, the company’s Board of Directors has declared a quarterly cash dividend of $0.31 per common share, payable on May 15, 2026, to shareholders recorded by May 4, 2026. This dividend aligns with Home Bancorp's commitment to providing value to its shareholders while balancing growth objectives.

Future Outlook

As Home Bancorp looks toward the remaining quarters of 2026, the organization remains focused on building strong relationships with clients across all operational markets. The management's foresight to identify potential problem loans early contributes to the company’s strategic direction in maintaining financial health. Executives are scheduled to communicate further insights in a conference call on April 21, 2026, affirming their commitment to transparency and investor engagement.

Through solid earnings alongside a forward-moving dividend declaration, Home Bancorp, Inc. continues to stand strong in the banking sector, focused on supporting its customers while ensuring shareholder returns. The intricate balance between loans and deposits moving forward will be strategically monitored as Home Bancorp navigates the evolving financial landscape.