HOME BANCORP, INC. (HBCP) Q3 2025 Earnings Summary

Executive Summary

Q3 delivered another step-up in profitability: diluted EPS was $1.59 (+9% q/q; +35% y/y), ROA rose to 1.41%, and NIM expanded 6 bps to 4.10%—the sixth straight quarter of NIM expansion .
Solid top-line on spread income and fees: net interest income grew to $34.1M (+2% q/q) and noninterest income was $3.7M; efficiency improved to 59.5% (vs. 60.5% in Q2) .
Funding/Liquidity tailwinds: deposits grew to $3.0B (+$67M q/q), FHLB advances fell sharply to $3.1M (from $88.2M), and overall cost of deposits ran at 1.88% in Q3, positioning NIM for resilience as rates move lower .
Credit mixed near-term but manageable: NPAs rose to $30.9M (0.88% of assets) on five relationships moved to nonaccrual; management does not anticipate losses given collateral and guarantor strength; ALLL held at 1.21% .
Result vs. Street: HBCP beat S&P Global consensus on both EPS ($1.59 vs. $1.36*) and revenue ($38.07M* vs. $33.33M*), aided by NIM expansion and lower funding costs; dividend raised 7% to $0.31 . Values retrieved from S&P Global.

What Went Well and What Went Wrong

What Went Well
- NIM expansion and earnings momentum: “Net interest margin expanded for the sixth consecutive quarter to 4.10%, and ROA increased to 1.41%” .
- Funding mix and costs improved: deposits up 2% q/q to $3.0B with growth in lower-cost money markets; overall deposit cost at 1.88% and FHLB advances down $75M q/q .
- Capital return and dividend signal: quarterly dividend increased 7% to $0.31; TBV/share rose to $43.29 .
What Went Wrong
- Loan balances declined: total loans down $58.6M (-2.1% q/q) on slower production and elevated paydowns, including $45M tied to customer asset sales .
- Credit migration: NPAs increased $5.5M q/q to $30.9M (0.88% of assets), largely five relationships moved to nonaccrual; substandard rose to $57.6M .
- Higher noninterest-bearing deposit beta risk on the way down: management noted deposit betas will be “a little bit less than peers,” but still rising over time, limiting downside in funding cost from rate cuts relative to some peers .

Financial Results

Actuals vs prior periods

Metric	Q3 2024	Q2 2025	Q3 2025
Diluted EPS ($)	1.18	1.45	1.59
Net Interest Income ($M)	30.38	33.35	34.11
Noninterest Income ($M)	3.69	3.72	3.74
“Total Revenues” (NII + Noninterest) ($M)	34.07	37.07	37.84
Net Interest Margin (%)	3.71	4.04	4.10
ROA (%)	1.10	1.31	1.41
Efficiency Ratio (%)	65.32	60.45	59.54

Q3 2025 result vs S&P Global consensus

Metric (Q3 2025)	Consensus	Actual	Surprise
Diluted EPS ($)	1.36*	1.59	+0.23 (Beat)
Revenue ($M)	33.33*	38.07*	+4.74 (Beat)

Values retrieved from S&P Global. Note: Company-reported “total revenues” (NII + noninterest) were $37.84M ; S&P revenue accounting may differ slightly.

KPIs and balance sheet

KPI	Q3 2024	Q2 2025	Q3 2025
Loans ($B)	2.67	2.76	2.71
Deposits ($B)	2.78	2.91	2.98
Loan/Deposit Ratio (%)	96.1	95.1	90.9
NPAs ($M) / % Assets	18.36 / 0.53%	25.43 / 0.73%	30.91 / 0.88%
Cost of Int.-Bearing Deposits (%)	2.78	2.52	2.57
Cost of Total Deposits (%)	—	1.84	1.88
FHLB Advances ($M)	38.41	88.20	3.06

Loan portfolio mix and quarterly movement

Loans ($M)	6/30/2025	9/30/2025	Δ QoQ
Commercial Real Estate	1,218.2	1,175.4	(42.8)
Construction & Land	324.6	325.7	+1.2
1–4 Family Mortgage	504.1	490.6	(13.5)
Multifamily	183.8	184.0	+0.2
Home Equity	81.2	86.9	+5.7
Commercial & Industrial	422.0	413.6	(8.4)
Consumer	30.7	29.7	(1.0)
Total Loans	2,764.5	2,705.9	(58.6)

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Loan growth	FY 2025	4%–6% if rate cuts occur	1%–2% for 2025	Lowered
NIM trajectory	Near-term	Expanding; above 4.0% in Q2	Flat to up “a couple bps” q/q; positioned to hold/increase even with cuts	Maintained (qualitative)
Noninterest income ($M)	Next several qtrs	$3.6–$3.8 (Q3–Q4)	$3.6–$3.8 “over the next several quarters”	Maintained
Noninterest expense ($M)	Next 2 qtrs	$22.5–$23.0 per qtr (H2)	$22.5–$23.0 per qtr (next two qtrs)	Maintained
Dividend per share	Ongoing	$0.29 (Q2)	$0.31 (Q3 declared)	Raised

Earnings Call Themes & Trends

Topic	Previous Mentions (Q1 & Q2 2025)	Current Period (Q3 2025)	Trend
NIM & asset sensitivity	NIM up to 3.91% (Q1) and 4.04% (Q2); asset yields rising; deposit costs stable to slightly up; slight asset sensitivity	NIM 4.10%; management expects flat to +few bps even with cuts; deposit costs can be lowered as Fed cuts	Improving
Loan growth & pipeline	Growth slowed by paydowns; expected at low end of 4–6% without cuts (Q2)	Loans down $58.6M; customer asset sales/paydowns elevated; 2025 growth now 1–2%	Worsening
Deposits & betas	Focus on core deposits; noninterest-bearing ~27%; CDs kept short; growth strong (Q1–Q2)	Deposits +$67M; cost of IB deposits 2.57% (up 5 bps); overall cost 1.88%; betas “less than peers” but still rising	Stable/Constructive
Credit quality	NPAs rose to 21.5M (Q1) and 25.4M (Q2); management did not anticipate losses	NPAs 30.9M; five relationships to nonaccrual; negative provision on loan decline; no material losses expected	Slightly Worsening, well-collateralized
Liquidity & wholesale funding	FHLB advances up in Q1 then paid down in Q2; strong availability	FHLB advances down to $3.1M; robust primary/secondary liquidity >$1.3B	Improving
M&A appetite	Evaluating targets; better valuation improves capacity; focus TX/LA (Q2)	“Continue to look for the right opportunity” as industry M&A accelerates	Stable interest

Management Commentary

“Net interest margin expanded for the sixth consecutive quarter to 4.10%, and our return on assets increased by 10 basis points to 1.41%.” — CEO .
“Loans decreased by $58 million... driven by customers selling businesses/property... we’re not losing them to other banks... challenges near-term growth.” — CEO .
“We think we can continue to increase asset yields even if there are rate cuts... half of our investment portfolio is projected to be paid off with roll-off yield of 2.56% vs ~4% current available yields.” — CFO .
“Our overall cost of deposits in Q3 was an attractive 1.88%... we were able to pay off FHLB advances and reduce total cost of interest-bearing liabilities.” — CFO .
“We have the opportunity to lower deposit rates further as the Fed cuts, offsetting some reduction in loan yields... well positioned to keep NIM flat to up a few bps.” — CFO .

Q&A Highlights

NIM trajectory and peak: CFO expects NIM “at least flat” with potential to rise a few bps, balancing loan yield repricing with lower deposit rates as Fed cuts progress .
Loan growth guide and pipeline: Q3 originations slowed; paydowns elevated; management expects some pickup in Q4 and stronger 1Q if further cuts occur; FY25 loan growth outlook reset to 1–2% .
Credit migration path: Analysts probed whether nonperformers might reverse; management working through idiosyncratic credits, with some payoffs expected; limited bankruptcy exposure; losses not anticipated .
Deposit competition and betas: Competition moderating; betas “less than peers” due to lower starting cost of funds; some room to reduce rates with cuts; LDR at 91% eases pricing pressure .

Estimates Context

Q3 EPS beat: $1.59 vs $1.36 consensus* (+$0.23); Q2 EPS beat: $1.45 vs $1.22*; Q3’24 beat: $1.18 vs $0.99* (4, 3, and 2 estimates, respectively). Values retrieved from S&P Global.
Q3 revenue beat: $38.07M* vs $33.33M* consensus (4 estimates)*; note company-reported “total revenues” (NII + noninterest) were $37.84M . Values retrieved from S&P Global.
Coverage context: Target price consensus mean $62.50*; consensus recommendation not available via feed. Values retrieved from S&P Global.

Key Takeaways for Investors

Earnings power is trending up on NIM resilience, disciplined funding, and operating leverage (efficiency sub-60%), supporting further estimate revisions if funding costs decline with Fed cuts .
Near-term loan contraction is a drag, but appears transitory and customer-retention friendly; LDR at ~91% provides capacity to re-accelerate when pipelines convert .
Credit normalization is occurring but remains manageable with robust collateral/guarantors; allowance stable at 1.21% and net charge-offs low .
Liquidity and risk management de-risked the balance sheet (FHLB paydown, short CD duration), giving rate-cut optionality on deposit costs .
Capital return remains supportive (dividend hike, buyback capacity), with improving valuation potentially enabling selective, accretive M&A in TX/LA over time .
Trading setup: Positive narrative (beats, dividend raise, margin momentum) vs. watch items (loan growth reset, NPA uptick). Sustained NIM >4% and deposit-cost declines are likely stock catalysts; further NPA remediation and loan growth inflection would reinforce the bull case .

Values marked with an asterisk (*) are retrieved from S&P Global.