Home Bancorp reported fourth-quarter earnings of $1.46 per share, surpassing the Zacks Consensus Estimate of $1.39 by 5.0%. This result also marks a 20.7% increase from the $1.21 per share earned in the year-ago quarter, reflecting continued operating leverage and disciplined expense management across its commercial and consumer lending portfolios.

Total net interest income rose 8.3% year-over-year, driven by a higher yield on new loan originations of 7.30% and extended net interest margins, which expanded 10 basis points sequentially to 4.15%. Noninterest income also contributed meaningfully, climbing 12% from the prior year on elevated fee income and service charges, helping Home Bancorp to exceed the consensus revenue estimate by more than 4%.

Core deposits grew at an annualized rate of 8.7% in the quarter, supporting a reduction in the loan-to-deposit ratio to 90.5% from 93.2% at the end of Q3. Although overall loan balances dipped by $60 million compared to last December—largely related to customer paydowns and business sales—management highlighted a strong pipeline of new commercial commitments that should drive loan growth of 3% to 5% in 2026.

Nonperforming assets increased modestly by $5.2 million to $31.2 million, or 0.90% of total assets, primarily due to five upgraded credits coming off accrual. Net charge-offs remained low at 0.04% of total loans, and the allowance for credit losses held steady at 1.22% of the loan book. The bank’s tangible common equity ratio improved to 8.1%, enabling continued dividend growth of 8% year-over-year and the repurchase of 2.5% of outstanding shares during the quarter.