Home Bancorp Q3 Net Income Falls to $10.1 Million as Credit Issues Mount

Home Bancorp, Inc. (Nasdaq: HBCP) reported third-quarter 2026 net income of $10.1 million, a decrease of $1.5 million from the prior quarter, while nonperforming assets rose 37% to $53.7 million. The Louisiana-based bank attributed the earnings decline to credit-related interest reversals and continued deposit pricing pressure, despite net interest income remaining essentially stable at $35.9 million.

John W. Bordelon, Chairman and CEO of Home Bancorp, stated that core earnings demonstrated resilience, with net interest margin declining five basis points to 4.19%. He noted that careful management of the balance sheet helped mitigate the effects of loans shifting to nonaccrual status and rising funding costs. Darren E. Guidry, President of the company and the bank, said the institution moved promptly to address emerging credit issues during the quarter.

The bank placed six loan relationships totaling $19.5 million on nonaccrual status in the third quarter. This action increased criticized and nonperforming loans, which Guidry said are currently assessed without anticipation of sizable losses. Nonperforming assets reached $53.7 million, or 1.49% of total assets, up from $39.2 million, or 1.09% of total assets, at the end of the second quarter.

Loans totaled $2.8 billion at September 30, 2026, down $4.0 million from June 30, 2026. Commercial real estate loans increased, while construction and land loans decreased. Deposits totaled $3.1 billion, a 0.5% decline from the prior quarter, with core deposits falling 1.2% to $2.3 billion.

The company recorded a $1.0 million provision to the allowance for loan losses in the third quarter, compared to a $762,000 provision in the second quarter. The allowance for loan losses stood at $34.4 million, or 1.24% of total loans, at September 30, 2026. Net loan charge-offs were $586,000 for the quarter.

The investment securities portfolio increased by $6.5 million to $415.6 million. The bank reported a net unrealized loss on its investment securities of $36.5 million at September 30, 2026, compared to a loss of $25.0 million at June 30, 2026.