Home Bancorp (HBCP) Q3 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 10:49 AM CST 14 min read

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Thursday, Oct. 16, 2025 astatine 2:00 p.m. ET

• Chairman, President, and Chief Executive Officer — John W. Bordelon

• Executive Vice President, Chief Financial Officer, and Treasurer — David T. Kirkley

John Bordelon: Thanks, David. Good morning, and convey you for joining our net telephone today. We admit your involvement successful Home Bank arsenic we sermon our results, expectations for the aboriginal and our attack to creating semipermanent shareholder value. Yesterday afternoon, we reported 3rd 4th nett income of $12.4 cardinal oregon $1.59 per share, up $0.14 per stock from the 2nd 4th and $0.41 from a twelvemonth ago. Net involvement borderline expanded for the sixth consecutive 4th to 4.10% and our instrumentality connected assets accrued by 10 ground points to 1.41%. Home Bank's ratio ratio besides improved successful the 3rd 4th and is present backmost down beneath 60%.

We've been capable to turn gross importantly faster than expenses implicit the past mates of years with revenues expanding doubly arsenic accelerated arsenic expenses. Loans decreased by $58 cardinal successful the 3rd 4th arsenic we saw payoffs and paydowns that were $52 cardinal higher than mean paydowns implicit the past 6 quarters. This was driven by a fig of semipermanent customers selling their businesses oregon property. I deliberation it's worthy mentioning that we're not losing them to different banks. 8 customers unsocial that sold their businesses oregon spot successful the 3rd 4th made up $45 cardinal of the decline.

In astir each case, Home Bank remains these customers' superior banking relationship, which bodes good for the future, but challenges our near-term growth. Customers are ever waiting for little rates earlier they determination up with their projects that necessitate financing. We person a batch of large conversations going connected but the media sum implicit the past 10 months has convinced galore that large complaint cuts are coming. So radical are choosing to stay connected the sidelines until determination is much clarity connected rates. While we are hopeful that we'd spot 4% to 6% indebtedness maturation this year, we're present expecting much mean maturation of 1% to 2% successful 2025.

We've ever maintained indebtedness operation subject and person prioritized risk-adjusted returns implicit growth, and we don't mean to wantonness our principles now. On a precocious note, deposits accrued 9% annualized successful the 3rd 4th with bully maturation and comparatively low-cost wealth marketplace accounts. Thanks to a concerted effort and a absorption connected gathering franchise value, we've accrued deposits by 17% successful the past 9 quarters versus loans, which besides grew a respectable 8%. Most of this summation has been successful halfway deposits and includes bully maturation successful Texas, which we entered backmost successful 2022. Our loan-to-deposit ratio is present 91%, which positions america good for erstwhile indebtedness maturation picks up.