third quarter of 2026
Filed Oct 19, 2026Home Bancorp reported third-quarter 2026 net income of $10.1 million, or $1.28 per diluted common share, as stable net interest income was offset by a higher credit-loss provision and foreclosed-assets expense.
Net interest income increased sequentially and capital ratios improved, but net income declined as nonperforming assets increased, six relationships totaling $19.5 million moved to nonaccrual status, provision expense rose, and foreclosed-assets expense increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total interest incomeGAAP | $49.74M | – | – |
| Q3 2026 total interest expenseGAAP | $13.83M | – | – |
| Q3 2026 net interest incomeGAAP | $35.91M | up $110,000, or less than 1% | – |
| Q3 2026 provision for loan lossesGAAP | $1.02M | – | – |
| Q3 2026 total noninterest incomeGAAP | $4.20M | up $282,000, or 7% | – |
| Q3 2026 total noninterest expenseGAAP | $26.32M | up $1.8 million, or 7% | – |
| Q3 2026 income before income tax expenseGAAP | $12.77M | – | – |
| Q3 2026 income tax expenseGAAP | $2.68M | – | – |
| Q3 2026 net incomeGAAP | $10.10M | down $1.5 million | – |
| Q3 2026 earnings per share - basicGAAP | $1.30 | – | – |
| Q3 2026 earnings per share - dilutedGAAP | $1.28 | – | – |
| Q3 2026 net interest marginother | 4.19% | decreased 5 basis points | – |
| Q3 2026 return on average assetsGAAP | 1.12% | – | – |
| Q3 2026 return on average equityGAAP | 8.74% | – | – |
| Q3 2026 efficiency ratioGAAP | 65.62 | – | – |
| Q3 2026 non-GAAP tangible incomenon-GAAP | $10.26M | – | – |
| Q3 2026 non-GAAP return on average tangible common equitynon-GAAP | 10.86% | – | – |
| Nine months ended September 30, 2026 net interest incomeGAAP | $106.2M | – | – |
| Nine months ended September 30, 2026 provision for loan lossesGAAP | $2.70M | – | – |
| Nine months ended September 30, 2026 total noninterest incomeGAAP | $11.86M | – | – |
| Nine months ended September 30, 2026 total noninterest expenseGAAP | $73.82M | – | – |
| Nine months ended September 30, 2026 net incomeGAAP | $33.07M | – | – |
| Nine months ended September 30, 2026 earnings per share - dilutedGAAP | $4.21 | – | – |
| Loans, net of unearned income at September 30, 2026GAAP | $2.77B | down $4.0 million, or less than 1% | – |
| Deposits at September 30, 2026GAAP | $3.05B | down $15.4 million, or less than 1% | – |
| Core deposits at September 30, 2026other | $2.3B | decreased $28.3 million, or 1% | – |
| Total assets at September 30, 2026GAAP | $3.60B | – | – |
| Cash and cash equivalents at September 30, 2026GAAP | $179.1M | – | – |
| Investment securities available for sale, at fair value at September 30, 2026GAAP | $415.6M | an increase of $6.5 million, or 2% | – |
| Allowance for loan losses at September 30, 2026GAAP | $34.43M | – | – |
| Allowance for loan losses to total loans at September 30, 2026GAAP | 1.24% | – | – |
| Total nonperforming assets at September 30, 2026GAAP | $53.74M | up $14.5 million, or 37% | – |
| Nonperforming assets to total assets at September 30, 2026GAAP | 1.49% | – | – |
| Total nonaccrual loans at September 30, 2026GAAP | $41.89M | – | – |
| Q3 2026 net loan charge-offsGAAP | $586,000 | – | – |
| Shareholders' equity at September 30, 2026GAAP | $453.1M | down $359,000, or less than 1% | – |
| Subordinated debt, net of issuance cost at September 30, 2026GAAP | $54.84M | – | – |
| Tier 1 leverage capital ratio at September 30, 2026GAAP | 12.33% | – | – |
| Total risk-based capital ratio at September 30, 2026GAAP | 16.09% | – | – |
| Book value per share at September 30, 2026GAAP | $57.55 | – | – |
| Tangible book value per share at September 30, 2026non-GAAP | $46.97 | – | – |
Capital returns
- The Board declared a quarterly cash dividend of $0.32 per share, payable on November 13, 2026, to shareholders of record as of November 2, 2026.
- The Company repurchased 350 shares during the third quarter of 2026 at an average price per share of $69.34.
- An additional 382,820 shares remain eligible for purchase under the 2025 Repurchase Plan.
What drove it
- Net interest income increased $110,000 sequentially to $35.9 million despite credit-related interest reversals and higher deposit costs.
- Loans transferred to nonaccrual status and related interest income reversals of approximately $862,000 reduced quarterly loan yield by approximately 12 basis points; loan pricing and portfolio mix recaptured approximately half of that pressure.
- Average interest-bearing deposit cost increased 5 basis points to 2.33%, while the average loan yield declined 6 basis points to 6.40%.
- Noninterest income increased primarily because other income rose $190,000 and service fees and charges rose $105,000, partly offset by a $75,000 decline in gain on sale of loans, net.
- Commercial real estate loans increased $8,449 (dollars in thousands) and commercial and industrial loans increased $16,313 (dollars in thousands) from June 30, 2026.
Concerns
- Six loan relationships totaling $19.5 million were placed on nonaccrual status during the third quarter of 2026.
- Total nonperforming assets rose to $53.7 million, or 1.49% of total assets, from $39.2 million, or 1.09% of total assets, at June 30, 2026.
- The provision for loan losses increased to $1.0 million from $762,000, primarily reflecting higher reserves on individually analyzed loans.
- Foreclosed assets, net expense increased $1.7 million sequentially, contributing to the $1.8 million increase in noninterest expense.
- The investment securities portfolio's net unrealized loss position increased to $36.5 million from $25.0 million.
What to watch
- The performance and loss outcomes of the six relationships totaling $19.5 million placed on nonaccrual status.
- Whether loan pricing and portfolio mix continue to offset nonaccrual interest reversals and deposit pricing pressure.
- Nonperforming assets, reserve coverage, net charge-offs, and provisions for individually analyzed loans.
- Core-deposit trends, as core deposits decreased $28.3 million during the third quarter of 2026.
- The effect of certificates of deposit maturing within the next 12 months, which totaled $729.4 million, or 97% of total certificates of deposit.
Balance sheet and cash flow
- Cash and cash equivalents were $179,053 (dollars in thousands) at September 30, 2026, compared with $188,224 (dollars in thousands) at June 30, 2026.
- Investment securities available for sale, at fair value were $415,595 (dollars in thousands) at September 30, 2026; the portfolio had a net unrealized loss position of $36.5 million, compared with $25.0 million at June 30, 2026.
- The Company made securities purchases of $40.7 million during the third quarter of 2026 and had no securities sales.
- Approximately 31% of the investment securities portfolio was pledged at September 30, 2026 to secure public deposits and the Federal Reserve discount window.
- Uninsured deposits were $933.7 million at September 30, 2026, compared with $959.4 million at June 30, 2026.
- No operating cash flow, investing cash flow, financing cash flow, or free cash flow was reported.
Analysis
Home Bancorp reported Q3 2026 net income of $10,097 (dollars in thousands), down from $11,615 (dollars in thousands) in Q2 2026 and $12,357 (dollars in thousands) in Q3 2025. Diluted EPS was $1.28, compared with $1.48 in the prior quarter and $1.59 a year earlier. The sequential earnings decline reflected a higher provision for loan losses and a $1.8 million increase in noninterest expense, led by foreclosed assets, net.
Core spread income remained comparatively stable. Net interest income was $35,915 (dollars in thousands), up $110,000 sequentially and above $34,106 (dollars in thousands) a year earlier. However, net interest margin declined to 4.19% from 4.24% in Q2 2026 as approximately $862,000 of interest reversals tied to loans moved to nonaccrual status reduced loan yield. The average loan yield declined to 6.40%, while the rate on interest-bearing deposits rose to 2.33% from 2.28%.
Credit quality was the principal deterioration in the quarter. Six relationships totaling $19.5 million moved to nonaccrual status, lifting total nonperforming assets to $53,736 (dollars in thousands), or 1.49% of total assets, from $39,210 (dollars in thousands), or 1.09%, at June 30, 2026. The Company recorded a $1,019 (dollars in thousands) provision for loan losses and $586,000 of net loan charge-offs. The allowance for loan losses increased to $34,427 (dollars in thousands), or 1.24% of total loans, but allowance coverage of nonperforming assets was 64.07%, versus 86.70% in the prior quarter.
Balance-sheet growth was measured. Loans declined $4.0 million sequentially to $2.8 billion, while deposits declined $15.4 million to $3.1 billion and core deposits decreased $28.3 million to $2.3 billion. The Company maintained preliminary Bank capital ratios of 12.33% Tier 1 leverage and 16.09% total risk-based capital. It also declared a $0.32 per-share dividend and repurchased 350 shares during the quarter.
The release provided no financial outlook. The central reported issues for subsequent periods are the resolution of the newly nonaccrual relationships, provisioning and charge-off trends, deposit pricing and retention, and the ability of loan pricing and funding mix to sustain net interest income amid a lower reported margin.
Management, verbatim
Quarterly results demonstrated the resilience of our core earnings, with net interest income holding essentially stable despite credit related interest reversals and continued deposit pricing pressure.
John W. Bordelon, Chief Executive Officer of the Company and the Bank
Although net interest margin declined five basis points to 4.19%, disciplined balance sheet management partially offset the impact of loans moving to nonaccrual status and higher funding cost.
John W. Bordelon, Chief Executive Officer of the Company and the Bank
Six loan relationships totaling $19.5 million were placed on nonaccrual status, increasing criticized and nonperforming loans. Based on our current assessment, we do not anticipate sizable losses from these relationships.
Darren E. Guidry, President of the Company and the Bank
Not in the filing
stated, not guessed- Forward financial guidance was not provided.
- Previous-release outlook was not provided.
- Segment revenue disclosures were not provided.
- Gross margin was not applicable or not reported.
- Operating cash flow was not reported.
- Investing cash flow was not reported.
- Financing cash flow was not reported.
- Free cash flow was not reported.
- A total debt line item was not reported.
- A tax rate was not reported.
- Year-over-year percentage changes for most reported income-statement and balance-sheet line items were not provided.
- Quarter-over-quarter percentage changes for most reported income-statement and balance-sheet line items were not provided.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.