Home Bancorp Reports Q3 Earnings Amid Credit Challenges and Leadership Transition
Home Bancorp (HBCP) reported third-quarter earnings for 2026, showing a record net interest income of $35.9 million but also an increase in nonperforming assets due to six loan relationships totaling $19.5 million placed on nonaccrual status. Net income declined slightly from the previous quarter and diluted EPS dropped by about 14%. Despite these challenges, Home Bancorp maintained a strong capital position with a tangible common equity ratio of 10.5% and total risk-based capital at 16.1%. Management also announced CEO John Bordelon's retirement in January 2027, naming President Darren Guidry as his successor. The bank experienced modest declines in both loans and deposits during the quarter but noted continued growth in its Houston market region at an annualized rate of 6%. The company warned that rising interest rates could worsen credit issues for borrowers over the next few quarters. Additionally, management expects elevated net charge-offs as they resolve substandard credits and anticipate loan payoffs from workouts to temper future loan growth. Despite these challenges, Home Bancorp maintained a low cost of deposits at 1.69% and reported noninterest-bearing deposits making up 27% of total deposits, providing stability in funding.
Tickers: $HBCP
Topics: Deposits Diluted EPS Loans Net Income Net Interest Margin
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Part of the story Home Bancorp Announces Leadership Transition and Provides Q3 Earnings Insights (3 articles)