HOME BANCORP, INC. has recently released its latest 10-Q report. Home Bancorp, Inc. is the bank holding company for Home Bank, National Association, which serves individuals and businesses in Louisiana, Mississippi, and Texas. Its business centers on deposit accounts, a range of consumer and commercial loans, and fee-based services such as treasury management, merchant card services, debit and credit cards, and payroll cards.
In Item 2, management said the discussion covers changes in the company’s financial condition from December 31, 2025 to March 31, 2026 and results for the first quarter of 2026 versus the first quarter of 2025. The company reported first-quarter 2026 net income of $11.4 million, up $396,000, or 3.6%, from $11.0 million a year earlier, with diluted earnings per share rising to $1.45 from $1.37.
Assets increased $62.0 million, or 1.8%, to $3.6 billion at March 31, 2026. Total loans declined $15.9 million, or 0.6%, to $2.728 billion, led by a $17.4 million drop in one-to-four-family first mortgage loans to $476.1 million and a $7.9 million decline in commercial real estate loans to $1.183 billion, partly offset by a $10.8 million increase in construction and land loans to $340.1 million.
Deposits rose $54.0 million, or 1.8%, to $3.0 billion. The company said the net interest margin improved to 4.16% from 3.91% a year earlier, helped by a lower average cost of interest-bearing liabilities; the average rate paid on total interest-bearing deposits fell 22 basis points to 2.29%.
Interest expense fell $2.2 million, or 14.2%, to $13.3 million, mainly because FHLB borrowing interest declined. Noninterest income decreased $271,000, or 6.8%, to $3.7 million, while noninterest expense increased $1.4 million, or 6.3%, to $22.9 million, driven mainly by a $1.1 million rise in compensation and benefits and a $786,000 increase in other expenses.
Credit costs moved higher. The company provisioned $922,000 to the allowance for loan losses in the quarter, compared with $394,000 in the prior-year period, and net loan charge-offs were $384,000. The allowance for loan losses increased to $33.7 million, or 1.23% of total loans, from $33.1 million, or 1.21%, at year-end; the allowance for credit losses, including unfunded commitments, rose to $35.3 million, or 1.29% of total loans, from $34.8 million, or 1.27%.
Nonperforming assets increased $3.8 million, or 10.5%, to $39.9 million, equal to 1.12% of total assets, from $36.1 million, or 1.03%, at December 31, 2025. The company said the increase was mainly tied to several loan relationships, including one with an outstanding balance of $1.4 million, that were placed on nonaccrual during the quarter.
Loans individually evaluated for credit losses increased to $10.0 million from $6.2 million at year-end. Within that total, commercial and industrial loans accounted for $1.4 million of recorded investment with a $985,000 allowance, while commercial real estate loans accounted for $2.2 million with a $522,000 allowance. Classified substandard loans were $61.5 million at March 31, 2026, essentially flat from $61.1 million at December 31, 2025. The market has reacted to these announcements by moving the company's shares 0.5% to a price of $64.23. If you want to know more, read the company's complete 10-Q report here.
