Lafayette, Louisiana, October 19, 2026 /PRNewswire/ -- Home Bancorp, Inc. (Nasdaq: HBCP) (the “Company”), the parent company of Home Bank, N.A. (the “Bank”) (www.home24bank.com), announced its financial results for the third quarter of 2026. For the quarter, the Company reported net income of $10.1 million, or diluted earnings per share (“diluted EPS”) of $1.28, compared to $11.6 million and $1.48 in the second quarter of 2026, representing decreases of $1.5 million and $0.20, respectively.
“The quarterly results demonstrated the resilience of our core profitability, with net interest income remaining largely stable despite interest reversals related to credit and ongoing deposit pricing pressures,” said John W. Bordelon, Chief Executive Officer of the company and bank. “Although the net interest margin declined by 5 basis points to 4.19%, prudent balance sheet management partially offset the impact of loans transitioning to non-accrual status and rising funding costs. We remain focused on preserving capital, maintaining liquidity, and allocating resources in a manner that supports sustainable profitability and long-term shareholder value.”
“We took swift action this quarter to identify and address emerging credit issues,” said Darren E. Guidry, President of the Company and Bank. “Six loan relationships totaling $19.5 million were placed on non-accrual status, resulting in increases in criticized and non-performing loans. Based on our current assessment, we expect these relationships to not result in material losses. Our focus remains on disciplined lending, proactive portfolio management, and growing the balance sheet at a measured pace to achieve appropriate risk-adjusted returns.”
Key Highlights for Q3 2026
- As of September 30, 2026, the total loan amount was $2.8 billion, a decrease of $4 million from June 30, 2026, representing a decline of less than 1% (an annualized decrease of 1%).
- As of September 30, 2026, total deposits amounted to $3.1 billion, a decrease of $15.4 million, or 0.5% (an annualized decline of 2%), compared to June 30, 2026. Core deposits decreased by $28.3 million, or 1.2% (an annualized decline of 5%), to $2.3 billion during the third quarter of 2026.
- Net interest income for the third quarter of 2026 was $35.9 million, an increase of $110,000 from the previous quarter, representing less than a 1% increase.
- The net interest margin ("NIM") for the third quarter of 2026 was 4.19%, down from 4.24% in the second quarter of 2026. Credit-related interest reversals and higher deposit costs were the primary drag, partially offset by higher yields on earning assets and favorable funding mix. Net interest income remained essentially flat at $35.9 million, demonstrating the supportive role of active balance sheet management on profitability.
- As of September 30, 2026, the total non-performing assets amounted to $53.7 million, representing 1.49% of total assets; as of June 30, 2026, the total non-performing assets were $39.2 million, or 1.09% of total assets. The increase in non-performing assets was primarily due to six loan relationships totaling $19.5 million being reclassified as non-accrual during the third quarter, partially offset by repayments and recoveries during the same period.
- The company recorded a loan loss provision of $1 million in the third quarter of 2026, compared to $762,000 in the second quarter. The increase primarily reflects higher provisions for individually analyzed loans, partially offset by a decline in total loan balances.
Loan
As of September 30, 2026, the total loan balance was $2.8 billion, a decrease of $4 million from June 30, 2026, representing a decline of less than 1%. The table below summarizes the changes in the company’s loan portfolio (net of unearned income) from June 30, 2026, to September 30, 2026.
The average loan yield for the third quarter of 2026 was 6.40%, a decrease of 6 basis points from the second quarter. The reclassification of loans to non-accrual status and the related reversal of approximately $8.62 million in interest income reduced the quarterly loan yield by about 12 basis points. Loan pricing and portfolio composition offset roughly half of this pressure, limiting the reported decline to 6 basis points and supporting stable net interest income.
Credit Quality and Credit Loss Provisions
As of September 30, 2026, the total non-performing assets (“NPAs”) amounted to $53.7 million, representing 1.49% of total assets, an increase of $14.5 million, or 37%, compared to $39.2 million, or 1.09% of total assets, as of June 30, 2026. The increase in NPAs during the third quarter was primarily due to six loan relationships totaling $19.5 million being reclassified as non-accrual during the quarter, partially offset by repayments and recoveries. Management promptly identified these credit exposures and continues to pursue resolution efforts aimed at controlling loss exposure. In the third quarter of 2026, the company recorded net loan charge-offs of $586,000, compared to $448,000 in the second quarter.
In the third quarter of 2026, the company recorded a $1 million loan loss provision. As of September 30, 2026, the total loan loss provision amounted to $34.4 million, representing 1.24% of total loans; as of June 30, 2026, it was $34 million, or 1.22% of total loans. The loan loss provision is based on multiple factors, including the company’s estimate of expected losses in the current loan portfolio, and is evaluated quarterly. Changes in expected losses take into account various factors, such as shifts in economic activity, borrower-specific information affecting risk ratings, projected delinquency trends, and the impact of industry-wide loan modification efforts.
The table below shows the company's loan portfolio categorized by credit quality as of September 30, 2026, and June 30, 2026.
Invest in securities
As of September 30, 2026, the total value of the company’s investment securities portfolio was $415.6 million, an increase of $6.5 million, or 2%, compared to June 30, 2026. As of September 30, 2026, the company’s net unrealized loss on investment securities was $36.5 million, compared to $25 million as of June 30, 2026. The effective duration of the investment securities portfolio was 3.6 years as of September 30, 2026, and 3.4 years as of June 30, 2026. During the third quarter of 2026, the company purchased $40.7 million in securities, compared to $39.3 million in the second quarter. The company did not sell any securities during either the third or second quarter of 2026.
The table below outlines the composition of the company's investment securities portfolio as of September 30, 2026.
As of September 30, 2026, approximately 31% of the investment securities portfolio was pledged to support public deposits and to secure borrowing from the Federal Reserve's discount window. As of September 30, 2026, and June 30, 2026, the company had $129.6 million and $139.9 million in securities pledged to support public deposits, respectively, and $572,000 and no securities pledged to the Federal Reserve's discount window, respectively.
Deposit
As of September 30, 2026, total deposits amounted to $3.1 billion, a decrease of $15.4 million from June 30, 2026, representing a decline of less than 1%. Core deposits or deposits without maturity decreased by $28.3 million, or 1%, to $2.3 billion during the third quarter of 2026. The table below summarizes changes in the company’s deposits from June 30, 2026, to September 30, 2026.
The average interest rate on interest-bearing deposits increased by 5 basis points from 2.28% in the second quarter of 2026 to 2.33% in the third quarter. As of September 30, 2026, time deposits maturing within the next 12 months amounted to $729.4 million, representing 97% of total time deposits.
As of September 30, 2026, the company’s uninsured deposit total (calculated in accordance with FDIC guidelines for deposits exceeding $250,000) was $9.337 billion; as of June 30, 2026, it was $9.594 billion. All public funds exceeding the FDIC insurance limit are fully collateralized.
Net interest income
Although the net interest margin decreased from 4.24% in the second quarter of 2026 to 4.19% in the third quarter, net interest income increased by $110,000 to $35.9 million. The narrowing margin was primarily due to a decline in loan yields following loans transitioning to non-accrual status, resulting in a reversal of approximately $862,000 in interest income, as well as higher average funding costs for interest-bearing liabilities during the quarter.
The average cost of interest-bearing deposits in the third quarter of 2026 increased by 5 basis points compared to the second quarter. The rise in deposit costs reflects the company's decision to raise deposit rates to maintain market competitiveness.
The average balance of other interest-bearing assets in the third quarter of 2026 was $150.9 million, a decrease of $7.3 million, or 5%, compared to the second quarter, primarily due to a decline in the average balance of cash and cash equivalents.
The amortization income from acquired loans was $187,000 in the third quarter of 2026, a decrease of $14,000, or 7%, from the second quarter.
Non-interest income
Non-interest income for the third quarter of 2026 was $4.2 million, an increase of $282,000, or 7%, from the second quarter. The growth was primarily driven by a $190,000 increase in other income and a $105,000 increase in service fees and charges, partially offset by a $75,000 decrease in net gains from loan sales.
Non-interest expenses
Non-interest expenses in the third quarter of 2026 were $26.3 million, an increase of $1.8 million, or 7%, compared to the second quarter. The increase was primarily due to a $1.7 million rise in net foreclosed assets and a $192,000 increase in franchise and stock taxes, partially offset by a $155,000 reduction in other expenses.
Capital
As of September 30, 2026, total shareholders' equity amounted to $453.1 million, a decrease of $359,000 from $453.5 million as of June 30, 2026, representing a decline of less than 1%. The decrease was primarily due to an increase in accumulated other comprehensive losses from available-for-sale investment securities, partially offset by the company's net income of $10.1 million for the third quarter of 2026. As of September 30, 2026, the preliminary Tier 1 leverage ratio and total risk-weighted capital ratio were 12.33% and 16.09%, respectively; as of June 30, 2026, they were 12.11% and 15.61%, respectively.
Dividends and stock buybacks
The company announced that the board has approved a quarterly cash dividend of $0.32 per common share, payable on November 13, 2026, with a record date of November 2, 2026.
In the third quarter of 2026, the company repurchased 350 shares of common stock at an average price of $69.34 per share. Under the 2025 repurchase plan, 382,820 shares remain available for repurchase. As of September 30, 2026, the company’s book value per common share was $57.55, and its tangible book value per common share was $46.97.
Conference call
Management will hold a conference call on Tuesday, October 20, 2026, at 10:30 a.m. Central Daylight Time to discuss third-quarter 2026 earnings. Analysts, investors, and other interested parties may join the call by dialing toll-free 1.646.357.8785 (domestic/international) or 1.800.836.8184 (toll-free in the U.S.). Investor presentation materials will be available on the Home Bancorp, Inc. website at https://home24bank.investorroom.com on the day of the presentation.
The conference call replay and transcript will be posted on the company’s investor relations page at https://home24bank.investorroom.com.
Non-GAAP Reconciliation
This press release contains financial information determined by methods other than generally accepted accounting principles ("GAAP"). Company management uses these non-GAAP financial measures when analyzing the company's performance. This press release includes information excluding intangible assets. Management believes that presenting these non-GAAP financial measures provides a more comprehensive understanding of the company's financial condition and operating results. These non-GAAP financial measures should not be considered a substitute for GAAP financial information and may not be comparable to non-GAAP financial information disclosed by other companies. A reconciliation of the non-GAAP information to GAAP is provided below.
This press release contains certain forward-looking statements. Forward-looking statements can be identified by the fact that they do not strictly relate to historical or current facts. They often include words such as “believe,” “expect,” “anticipate,” “intend,” “plan,” “estimate,” or similar terms, or future-tense or conditional verbs such as “will,” “would,” “should,” “may,” or others.
Forward-looking statements are inherently subject to risks and uncertainties. Many factors—many of which are beyond our control—could cause actual results, events, or outcomes to differ materially from those described in the forward-looking statements. Some of these factors are described in Home Bancorp’s Annual Report on Form 10-K for the year ended December 31, 2025, including risks related to the loan portfolio, risks associated with deposit operations, the level of loan loss reserves, risks related to growth strategies, geographic concentration of the business, dependence on management, the impact of market interest rates and regulation on the business, and competitive risks. Forward-looking statements represent our views only as of the date they are made. We undertake no obligation to update forward-looking statements to reflect circumstances or events that occur after the date they are made or to reflect the occurrence of unanticipated events.