HOME BANCORP, INC. has recently released its 10-Q report. Home Bancorp, Inc. is the bank holding company for Home Bank, National Association, with banking operations in Louisiana, Mississippi, and Texas. Its business includes deposit products, a range of consumer and commercial loans, treasury management services, debit and credit cards, merchant services, and investments in loans and securities. The company was founded in 1908 and is headquartered in Lafayette, Louisiana.
In Item 2, management said the quarter was marked by higher earnings, modest balance-sheet growth, and a larger allowance for credit losses. Net income rose to $11.6 million, or $1.48 diluted EPS, in the second quarter of 2026 from $11.3 million, or $1.45 diluted EPS, a year earlier; for the first half, net income increased to $23.0 million, or $2.93 diluted EPS, from $22.3 million, or $2.82 diluted EPS. Assets climbed $110.6 million, or 3.2%, from year-end 2025 to $3.6 billion, while total loans increased $34.9 million to $2.8 billion and deposits rose $96.1 million to $3.1 billion.
Loan growth was concentrated in commercial real estate, multi-family residential, and commercial and industrial lending. Commercial real estate loans increased $25.4 million to $1.216 billion, multi-family residential loans rose $19.8 million to $197.6 million, and commercial and industrial loans grew $15.8 million to $446.4 million, while one* to four-family first mortgage loans fell $17.8 million to $475.6 million and construction and land loans declined $5.7 million to $323.5 million. Total real estate loans were $2.303 billion at June 30, 2026, up from $2.283 billion at December 31, 2025.
The allowance for loan losses increased to $34.0 million, or 1.22% of total loans, from $33.1 million, or 1.21%, at year-end. The broader allowance for credit losses, including unfunded commitments, was $35.6 million, or 1.28% of total loans, versus $34.8 million, or 1.27% at December 31, 2025. The company recorded $1.7 million in provision expense for the first half and said net loan charge-offs totaled $832,000.
Asset quality weakened somewhat. Nonperforming assets increased $3.1 million to $39.2 million, or 1.09% of total assets, from $36.1 million, or 1.03% at year-end, with the company citing multiple loan relationships moving to nonaccrual status during 2026, partially offset by paydowns. Loans individually evaluated for credit losses fell to $4.5 million from $6.2 million, but loans classified as substandard increased to $68.9 million from $61.1 million.
Profitability benefited from lower funding costs. The net interest margin improved to 4.24% in the second quarter and 4.20% for the first half, up 20 basis points and 22 basis points, respectively, from the prior-year periods. The average rate paid on total interest-bearing deposits fell to 2.28% in the quarter and 2.29% for the six months, down 24 basis points and 23 basis points year over year. Interest expense declined to $13.4 million in the quarter and $26.7 million for the half, down 12.2% and 13.2%, respectively.
Noninterest income rose to $3.9 million in the second quarter, up $203,000, driven by higher gain on sale of loans, service fees and charges, and other income. For the first six months, noninterest income slipped $68,000 to $7.7 million, as declines in other income and gain on sale of loans outweighed higher service fees and charges. Noninterest expense increased to $24.6 million in the quarter and $47.4 million for the first half, led by compensation and benefits, which rose $1.7 million in the quarter and $2.8 million for the six months. As a result of these announcements, the company's shares have moved 1.2% on the market, and are now trading at a price of $71.87. For the full picture, make sure to review HOME BANCORP, INC.'s 10-Q report.
