Home Bancorp reports Q2 2026 earnings of $11.6M, raises dividend 3%, but criticized loans jump to 3.45%

Home Bancorp reported Q2 2026 net income of $11.6 million (diluted EPS $1.48), up from $11.4 million in Q1 2026. Net interest margin expanded to 4.24% from 4.16% in the prior quarter, while net interest income rose to $35.8 million from $34.5 million. Return on assets held steady at 1.31%, return on equity declined slightly to 10.3% from 10.4%, and return on average tangible common equity decreased to 12.9% from 13.1%. The efficiency ratio increased to 61.8% from 60.0%.

Criticized loans rose to $95.8 million or 3.45% of total loans at June 30, 2026, up from $72.6 million or 2.66% at March 31, 2026. Special mention loans increased sharply to $26.9 million from $11.1 million, while substandard loans rose to $68.9 million from $61.5 million. Nonperforming loans improved to $26.4 million (0.95% of total loans) from $35.8 million (1.31%) in the prior quarter. The allowance for loan losses remained stable at 1.22% of total loans.

Total deposits grew $42.1 million quarter-over-quarter to $3.1M at June 30, 2026, driven by increases in money market accounts ($28.4 million), NOW accounts ($17.8 million), and demand deposits ($5.1 million). Certificates of deposit declined $4.5 million. Year-over-year, deposits increased $160.6 million. Non-interest bearing deposits represented 27% of total deposits, and the cost of total deposits was 1.66% for Q2 2026.

Total loans reached $2.78 billion at June 30, 2026, up $50.7 million from March 31, 2026. The portfolio is diversified across CRE owner-occupied (28%), 1-4 family mortgage (17%), CRE non-owner-occupied (16%), commercial & industrial (16%), construction & development (12%), multifamily (7%), home equity (3%), and consumer (1%). The weighted average rate on loans was 6.46% in Q2 2026. Year-to-date 2026 annualized loan growth was 3%, with the Houston market growing at a 9% annualized rate.

Home Bank, N.A. maintained strong capital ratios at June 30, 2026: Common Equity Tier 1 capital at 14.4%, Tier 1 risk-based capital at 14.4%, total risk-based capital at 15.6%, and Tier 1 leverage capital at 12.1%. Tangible book value per share increased to $47.02 from $46.04 in the prior quarter. The company declared a cash dividend of $0.32 per share payable August 14, 2026, and approved a new share repurchase plan for 400,000 shares.

Home Bancorp reported second-quarter 2026 net income of $11.6 million, or $1.48 per diluted share, up modestly from $11.4 million ($1.45 per share) in Q1 2026. Return on assets was 1.31% and net interest margin expanded 8 basis points to 4.24%, driven by higher-yielding interest-earning assets outpacing the cost of interest-bearing liabilities.

Darren E. Guidry was appointed President of both Home Bancorp, Inc. and Home Bank, N.A. John W. Bordelon remains Chairman and CEO. Guidry stated the company will continue proactively identifying and resolving problem loans, though criticized loans increased during the quarter with no sizable losses anticipated.

Criticized loans (special mention plus substandard) increased to $95.8 million at June 30, 2026 from $72.6 million at March 31, 2026. Special mention loans rose from $11.1 million to $26.9 million, and substandard loans increased from $61.5 million to $68.9 million. Management stated they do not anticipate any sizable losses and are proactively working to resolve problem loans.

The Board declared a quarterly cash dividend of $0.32 per share. Shareholders of record as of August 3, 2026 will receive payment on August 14, 2026.

Home Bancorp disclosed its financial results for the second quarter ended June 30, 2026. The detailed results are contained in a press release attached as Exhibit 99.1, which was not included in the provided filing text.