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- **Record Profit Growth**: 31% Y/Y net income growth to $12.4 million, driven by 4.10% NIM and 9% annualized deposit growth.
- **Resilient NIM**: NIM expansion streak continues at 4.10%, with 41% of loans set to reprice over 3 years.
- **Moderate Loan Growth**: 1-2% 2025 loan growth expected, but 91% loan-to-deposit ratio positions for 2026 recovery.
- **Credit Stability**: Nonperforming loans at 88 bps of assets with minimal charge-off risk, supported by 1.21% allowance coverage.
- **Capital Strength**: 9.5% annualized tangible book value growth since 2019, with 17% share buybacks and 36% dividend increases.

**【Management Opening Remarks】**
- CFO David Kirkley introduced the call and handed over to CEO John Bordelon for opening remarks.

**【CEO Commentary】**
- **Q3 2025 Results**: Net income of $12.4 million ($1.59 per share), up 9% Q/Q and 31% Y/Y. Net interest margin (NIM) expanded to 4.10%, the 6th consecutive quarter of growth. Return on assets (ROA) improved to 1.41%, and efficiency ratio dropped below 60%.
- **Loan Performance**: Loans decreased $58 million Q/Q due to higher-than-average payoffs ($45M from 8 business-sell customers). Despite near-term challenges, 80% of these customers remain primary banking relationships.
- **Deposit Strength**: Deposits grew 9% annualized Q/Q and 17% over 9 quarters, with 27% noninterest-bearing deposits. Loan-to-deposit ratio is 91%, positioning for future growth.
- **Credit Quality**: Nonperforming loans (NPLs) increased to $30.9 million (88 bps of assets), but charge-offs remain low at 6 bps over 6 years. Management expects no material losses on recent NPLs.
- **Strategic Focus**: Maintaining loan discipline for risk-adjusted returns. Texas market expansion continues, with 17% deposit growth over 9 quarters.

**【CFO Financial Commentary】**
- **Net Interest Income**: Increased $754K Q/Q, driven by 7.35% yield on new loans. 41% of loans (5.7% blended rate) will reprice over 3 years, supporting NIM resilience.
- **Cost Management**: Interest-bearing liability cost decreased 2 bps to 2.69%. CDs cost 3.85%, with 77% maturing in 6 months. Deposit beta is expected to be lower than peers due to conservative rate adjustments.
- **Credit Metrics**: Provision expense was negative $229K, with allowance for loan losses stable at 1.21%. Noninterest income is stable at $3.7M Q/Q.
- **Capital Strategy**: Tangible book value per share grew 9.5% annualized since 2019, with 17% share buybacks and 36% dividend growth.

**【Q&A Highlights】**
- **NIM Trajectory**: CFO expects NIM to remain flat or increase 2-3 bps Q/Q, supported by asset sensitivity and deposit rate cuts.
- **Loan Growth Outlook**: CEO anticipates 1-2% 2025 loan growth (previously 4-6%), but expects pickup in Q4 and stronger growth in 2026 with rate cuts.
- **Nonperforming Assets**: Management confident in collateral and guarantor strength for $5.1M Houston development loan and other NPLs.
- **Deposit Competition**: CFO notes limited aggressive pricing, with 91% loan-to-deposit ratio allowing selective deposit rate adjustments.

Home Bancorp, Inc. (HBCP) Q3 2025 Earnings Call Transcript

Revenue

Sales and Services Revenue

Financing Services Revenue

Other Revenue

Cost of Revenue

Cost of Goods and Services

Cost of Financing Services

Other Cost

Gross Profit

Other Operating Income

Operating Expenses

Selling, General and Administrative Expenses

Selling and Marketing Expenses

General and Administrative Expenses

Research and Development Expenses

Loss on Bad Debts

Loss on Impairment of Other Assets

Loss on Disposal of Assets

Other Operating Expenses

Operating Income

Non-Operating Income (Loss)

Income (Loss) from Affiliates

Income (Loss) from Associates

Income (Loss) from Joint ventures

Gain (Loss) on Other Investment

Gain (Loss) on Change in Fair Value

Gain (Loss) on Foreign Currency Exchange

Other Non-Operating Income (Loss)

Net Interest Expense

Interest Expense

Interest Income

Pretax Income From Continuing Operations

Income Tax Expense

Current Income Tax

Deferred Income Tax

Income Tax Adjustments

Net Income from Continuing Operations

Income from Discontinued Operations

Other Items Before Net Income

Net Income

Net Income Attributable to Minority Interests

Net Income Attributable to Owners of the Company

Preferred Stock Dividends

Other Adjustments

Net Income Attributable to Common Stockholders

Other Comprehensive Income

Total Comprehensive Income

Total Comprehensive Income Attributable to Minority Interests

Total Comprehensive Income Attributable to Owners of the Company

Basic EPS

Basic EPS from Continuing Operations

Basic EPS from Discontinued Operations

Diluted EPS

Diluted EPS from Continuing Operations

Diluted EPS from Discontinued Operations

HBCP

HBCP fundamentals

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