Q2 2026 Home Bancorp Inc Earnings Call Transcript
Key Points
- Home Bancorp Inc (HBCP) reported a net income of $11.6 million for the second quarter, with earnings per share increasing by 2% from the first quarter.
- Net interest margin expanded to 4.24%, and net interest income reached a record high of $35.8 million, driven by higher yields on earning assets and stable funding costs.
- Loan growth was strong, with a $50.7 million increase in the second quarter, particularly in the Houston market, which grew at a 9% annualized rate.
- Total deposits grew by $42.1 million, maintaining a loan-to-deposit ratio within the target range of 90% to 92%.
- Tangible book value per share increased by more than 13% from a year ago, reflecting disciplined balance sheet management and strong core deposit franchise.
- Substandard loans increased due to a downgrade of a $12.4 million C&I credit, contributing to a rise in criticized loans.
- Noninterest expenses rose to $24.6 million, driven by increased compensation, benefits, and foreclosed asset expenses.
- The competitive environment in Texas is challenging, with some banks offering deposit rates as high as 4.25%, impacting Home Bancorp's ability to compete.
- The construction loan segment saw a decline, which was unexpected given Home Bancorp's historical strength in this area.
- There is uncertainty in predicting customer financing decisions, which could impact future loan growth projections.
Good morning, ladies and gentlemen, and welcome to the Home Bancorp's second quarter 2026 earnings conference call. (Operator Instructions) Please note, this event is being recorded.
I would now like to turn the conference over to Home Bancorp's Chairman and CEO, John Bordelon; President, Darren Guidry; and Chief Financial Officer, David Kirkley.
Please go ahead, Mr. Kirkley.
Thank you, Ina. Good morning, and welcome to Home Bank's second quarter 2026 earnings call. Our earnings release and investor presentation are available on our website. I'd ask that everyone please refer to the disclaimer regarding forward-looking statements in the investor presentation and our SEC filings.
Now I'll hand it over to John to make a few comments about the second quarter. John?
Thanks, David. Good morning, everyone
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