Home Bancorp HBCP Q1 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 10:46 AM CST 21 min read

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Tuesday, April 22, 2025 astatine 11:30 a.m. ET

• President & Chief Executive Officer — John W. Bordelon

• Executive Vice President & Chief Financial Officer — David T. Kirkley

• Operator

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John Bordelon: Thanks, David. Good greeting and convey you for joining our net telephone today. We admit your involvement successful Home Bank arsenic we sermon our results, expectations for the aboriginal and our attack to creating semipermanent shareholder value. Yesterday afternoon, we reported archetypal 4th nett income of $11 cardinal oregon $1.37 per share, which was a steadfast 13% summation from the 4th fourth and a 20% summation from a twelvemonth ago. Net involvement borderline expanded for the 4th consecutive 4th to 3.91% and our instrumentality connected assets accrued by 17 ground points to 1.29%. First 4th borderline enlargement was driven by a 13 ground constituent diminution successful the outgo of interest-bearing liabilities, unchangeable yields connected interest-earning assets and indebtedness growth.

Loans grew by $29.1 cardinal successful the archetypal 4th oregon astir 4% annualized and we've continued to spot bully maturation truthful acold successful April. There person been a batch of headlines precocious concerning the system and tariffs that whitethorn alteration the absorption of the system quickly. But for now, we're sticking with our guidance of 4% to 6% indebtedness maturation successful 2025. Deposits accrued successful the archetypal 4th astatine a 7% annualized complaint owed to seasonal inflows of nationalist funds and continued effort connected our portion to money our indebtedness maturation with halfway deposits. Noninterest-bearing deposits accrued $21.9 million, which equated to 27% of full deposits astatine the extremity of the quarter.

CDs besides accrued and we've had bully occurrence utilizing our CD merchandise to pull and clasp lawsuit deposits since the extremity of the pandemic. At 27% of full deposits, CDs are a larger percent of backing than we are utilized to seeing, but we expect that percent to diminution arsenic rates yet fall. We proceed to optimize our Houston market, which has been a tremendous occurrence since we acquired it 3 years ago. We person a beardown squad successful spot and judge determination are opportunities to upgrade and grow our carnal footprint that volition thrust adjacent much business. In 2024, we opened an LPO and hired a commercialized squad for Northwest Houston.

And conscionable recently, we purchased a full-service subdivision gathering successful that vicinity that we are renovating and anticipation to determination into by the extremity of the year. The full enforcement squad precocious completed visits to each subdivision successful each marketplace wherever we had the accidental to speech to employees and customers. Each marketplace would past big a Cajun-style crawfish boil with the executives serving the employees. These boils included delicious crawfish with each the fixing music, games, raffles and camaraderie with each of our employees. These visits person agelong been a contented astatine Home Bank, wherever we judge successful the conception of servant leadership.