HOME BANCORP, INC. (HBCP) Q2 2025 Earnings Summary

Executive Summary

EPS and revenue beat: Diluted EPS was $1.45, above the $1.22 consensus; “total revenues” beat with net interest income up 5% QoQ to $33.4M and NIM rising to 4.04% from 3.91% (significant beat) . Estimates context in table below (Values retrieved from S&P Global)*.
Balance sheet momentum: Loans grew to $2.76B (+$17.3M QoQ) and deposits to $2.91B (+$81.0M QoQ), driving lower FHLB advances and improved funding mix .
Credit normalization: NPAs increased to $25.4M (0.73% of assets) mainly from four relationships moved to nonaccrual; management does not anticipate losses given collateral strength and underwriting discipline .
Capital return and dividend: Quarterly dividend raised 7% to $0.29 and 147,243 shares repurchased at $43.72; book value per share rose to $52.36, TBV/share to $41.54 .
Near-term catalysts: Continued NIM expansion from loan repricing and deposit mix, strong core deposit growth (noninterest-bearing +6%), and disciplined pricing in new originations around ~7.4% support earnings trajectory .

What Went Well and What Went Wrong

What Went Well

NIM expansion and revenue growth: NIM increased to 4.04% (+13 bps QoQ), lifting net interest income to $33.4M; management emphasized “keep deposit and funding costs stable” while origination yields supported margin .
Deposits and funding: Deposits rose $81.0M QoQ; demand deposits increased $41.9M; average rate on interest-bearing deposits only +1 bp to 2.52%, and FHLB advances declined by $75M QoQ, easing funding cost pressures .
Core deposit strategy and Houston momentum: Management incentives prioritize core deposit growth; Houston branch upgrade expected to improve productivity and deposit gathering; noninterest-bearing deposits stayed robust at 27% .

What Went Wrong

Credit metrics: NPAs rose to $25.4M (0.73% of assets), criticized loans increased to $51.6M (1.87% of loans), and net charge-offs were $335K; four relationships totaling $6.2M moved to nonaccrual .
Expense uptick: Noninterest expense increased $828K QoQ to $22.4M, driven by $987K write-off of acquired SBA receivables and higher compensation; partially offset by $970K reversal in reserve for unfunded commitments .
Slower loan growth: Loan growth moderated (~3% annualized) due to construction paydowns and slower new construction activity; management guided to the low end of 4–6% if rate cuts don’t materialize .

Financial Results

Metric	Q2 2024	Q1 2025	Q2 2025
Net Interest Income ($USD Millions)	$29.393	$31.749	$33.351
Noninterest Income ($USD Millions)	$3.755	$4.009	$3.716
Net Income ($USD Millions)	$8.118	$10.964	$11.330
Diluted EPS ($USD)	$1.02	$1.37	$1.45
Net Interest Margin (%)	3.66%	3.91%	4.04%
Efficiency Ratio (%)	65.79%	60.35%	60.45%
Return on Average Assets (%)	0.97%	1.29%	1.31%

Balance Sheet	Q2 2024	Q1 2025	Q2 2025
Loans ($USD Millions)	$2,661.346	$2,747.277	$2,764.538
Deposits ($USD Millions)	$2,722.915	$2,827.207	$2,908.234
FHLB Advances ($USD Millions)	$83.506	$163.259	$88.196
Shareholders’ Equity ($USD Millions)	$375.830	$402.831	$408.818

Credit KPIs	Q2 2024	Q1 2025	Q2 2025
NPAs ($USD Millions)	$17.049	$21.471	$25.429
NPAs / Total Assets (%)	0.50%	0.62%	0.73%
Allowance for Loan Losses ($USD Millions)	$32.212	$33.278	$33.432
Allowance / Total Loans (%)	1.21%	1.21%	1.21%
Net Charge-offs ($USD Thousands)	$510	$32	$335

Yield/Cost Detail	Q2 2024	Q1 2025	Q2 2025
Loan Yield (%)	6.28%	6.43%	6.50%
Cost of Interest-Bearing Deposits (%)	2.69%	2.51%	2.52%
Cost of Interest-Bearing Liabilities (%)	2.93%	2.74%	2.71%
Net Interest Spread (TE, %)	2.77%	3.10%	3.21%

Segment breakdown (loan portfolio by type, Q2 2025):

Loan Type ($USD Thousands)	3/31/2025	6/30/2025	QoQ Change
1–4 Family First Mortgage	$504,356	$504,145	$(211)
Home Equity	$77,417	$81,178	$3,761
Commercial Real Estate	$1,193,364	$1,218,168	$24,804
Construction & Land	$346,987	$324,574	$(22,413)
Multifamily	$183,792	$183,809	$17
Commercial & Industrial	$411,363	$421,997	$10,634
Consumer	$29,998	$30,667	$669
Total Loans	$2,747,277	$2,764,538	$17,261

Deposits breakdown (Q2 2025):

Deposit Category ($USD Thousands)	3/31/2025	6/30/2025	QoQ Change
Demand	$754,955	$796,844	$41,889
Savings	$212,053	$204,191	$(7,862)
Money Market	$464,659	$463,332	$(1,327)
NOW	$641,287	$625,793	$(15,494)
Certificates of Deposit	$754,253	$818,074	$63,821
Total Deposits	$2,827,207	$2,908,234	$81,027

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loan Growth	FY 2025	N/A	Lower end of 4–6% absent rate cuts	Maintained bias lower
Noninterest Income	Next 2 quarters	N/A	$3.6M–$3.8M per quarter	New range
Noninterest Expense	Remainder of 2025	N/A	$22.5M–$23.0M per quarter	New range
CDs Renewal Rate	Near term	N/A	~3.85% renewal; ~4.1% new CDs	New detail
CD Maturities	Next 12 months	N/A	$781.9M matures within 12 months	Liquidity clarity
Dividend per Share	Q3 2025 (payable Aug 15)	$0.27 (Q1)	$0.29	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q4 2024, Q1 2025)	Current Period (Q2 2025)	Trend
NIM and Funding Costs	NIM up to 3.82% QoQ; cost of interest-bearing deposits fell 12 bps; deposit rates repricing lower	NIM rose to 4.04%; cost of interest-bearing liabilities down to 2.71%; deposit costs stable (+1 bp)	Improving margin momentum
Loan Growth and Pipelines	Strong Q4 loan growth; moderation in Q1 with CRE/multifamily growth, C&I down	Slower growth (~3% annualized) due to construction paydowns; originations ~7.44% contractual yields	Moderating growth; higher yields
Core Deposits Strategy	Focus on core deposits; non-maturity deposits up QoQ in Q1	Noninterest-bearing deposits +$41.9M; incentives geared to core deposits; Houston branch upgrade	Strengthening core funding
Credit Quality	NPAs improved in Q4; increased to $21.5M in Q1	NPAs increased to $25.4M; four relationships downgraded; criticized loans 1.87% of loans	Deterioration but manageable
Capital Management	Dividend $0.27; buybacks modest in Q4; new repurchase plan approved in Q1	Dividend increased to $0.29; 147K shares repurchased; strong capital ratios	Enhanced shareholder return
M&A Outlook	No deals; positioning for opportunities	Valuation improved; considering $350M–$1B targets, mostly in Texas/Louisiana	More active evaluation

Management Commentary

CEO: “We saw growth in loans and deposits and net interest margin continued its upward trajectory as we were able to keep deposit and funding costs stable… We saw increases in nonperforming and criticized loans… but do not anticipate any losses.” .
CFO: “The contractual rate on new loan originations was 7.44% in Q2… We expect noninterest income to be between $3.6 and $3.8 million over the next two quarters… Noninterest expenses are expected to be between $22.5 million and $23 million per quarter for the remainder of the year.” .
CEO on deposits/Houston: “With the full-service branch, we’re able to attract more deposits… very convenient… to bring in much more on the deposit side…” .

Q&A Highlights

Loan repricing cadence: Some slowdown in Q3, more fixed-rate repricing opportunities in Q4 and beyond; five-year balloons from 2020–2021 will reprice higher through 2026 .
Rate sensitivity/NII: Asset-sensitivity modest; margin can still expand with origination yields offsetting rate cuts; CD terms kept short to react quickly .
Deposit competitiveness: Core deposit growth prioritized via incentives; focus on reducing loan-to-deposit ratio to 90–92% by slowing large NOO CRE that carry low deposits .
CDs pricing/retention: Renewal/new CD rates around ~3.85%/~4.1%; ~90% renewal retention .
M&A criteria: Targets now $350M–$1B given improved P/TBV; majority of conversations in Texas, also Louisiana .

Estimates Context

Metric	Consensus Estimate*	Actual*	Surprise*
EPS ($)	1.22	1.45	+0.23
Revenue ($USD Millions)	32.07	37.55	+5.48

Values retrieved from S&P Global. Primary EPS - # of Estimates: 3; Revenue - # of Estimates: 3. Beat on both EPS and revenue was material, reflecting NIM expansion and strong core funding mix. [S&P Global]*

Key Takeaways for Investors

Margin expansion continues: NIM at 4.04% with loan yields at 6.50% and cost of interest-bearing liabilities at 2.71% supports further NII growth near term .
Credit watch but contained: NPAs rose to 0.73% of assets (four relationships) and criticized loans increased, but management expects no losses; ALL/Loans stable at 1.21% .
Funding strength: Deposits +$81M QoQ, demand deposits +$42M; average deposit costs stable; large CD maturities offer rate reset flexibility as the curve evolves .
Operating expense trajectory: Expect $22.5–$23.0M per quarter after one-time SBA receivable write-off; monitor compensation run-rate and other expense line .
Capital return: 7% dividend increase to $0.29 and active buybacks (147K shares in Q2) underscore confidence and valuation support .
Growth outlook: Loan growth guided to low end of 4–6% without rate cuts; repricing pipeline stronger in Q4 and into 2026, especially fixed balloons .
Positioning for M&A: Improved valuation opens $350M–$1B deal size, with Texas focus; potential strategic accelerant if pricing/fit align .

Appendix: Additional KPIs

Capital & Liquidity	Q1 2025	Q2 2025
Tier 1 Leverage (%)	11.48%	11.47%
Total Risk-Based Capital (%)	14.58%	14.66%
TCE Ratio (%)	9.35%	9.52%
CD Maturing <12 months ($USD Millions)	$708.2	$781.9
Cost of Total Deposits (%)	1.85% (implied prior) vs 1.84% current; declined by ~1 bp QoQ

Notes:

All document-based values are cited from company filings and press releases.
All estimate-based values are marked with an asterisk and are from S&P Global.