Company: HBCP
Filing Date: 2025-11-03
Form Type: 10-Q
Source: 0001628280-25-048166
Chunk: 87

Company: HOME BANCORP, INC.
Filing Date: 2025-11-03
Form: 10-Q
Item: Item 8
Chunk 87
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%, from $11.0 million earned for the same period in 2024. Noninterest income increased over the comparable period primarily due to an increase in service fees and charges (up $278,000) and gain on sale of loans (up $227,000, primarily due to gain on sale of SBA loans), which were partially offset by a decrease in other income (down $116,000, primarily due to the absence of derivative fee income).

Noninterest Expense

Noninterest expense for the third quarter of 2025 totaled $22.5 million, up $273,000, or 1.2%, from the third quarter of 2024. Noninterest expense increased over the comparable quarter primarily due to an increase in compensation and benefits (up $473,000, primarily due to increases in salaries) and foreclosed assets (up $315,000), which were partially offset by a decrease in other expenses (down $206,000) and occupancy expenses (down $188,000, primarily due to a lease that ended September 2024).

Noninterest expense for the nine months ended September 30, 2025 totaled $66.5 million, up $1.6 million, or 2.4%, from the same period in 2024. Noninterest expense increased over the comparable quarter primarily due to an increase in compensation and benefits (up $1.5 million, primarily due to increases in salaries) and foreclosed assets, net (up $807,000), which were partially offset by the reversal of provision for credit losses on unfunded commitments (down $836,000, primarily due to lower unfunded commitment levels).

Income Taxes

Income tax expense for the three and nine months ended September 30, 2025 totaled $3.2 million and $8.8 million, respectively, compared to $2.2 million and $6.4 million for the three and nine months ended September 30, 2024, respectively. Income tax expense increased over the prior comparable quarter primarily due to increased taxable earnings. The Company's effective tax rates for the third quarters of 2025 and 2024 were 20.5% and 19.2%, respectively. For the nine months ended September 30, 2025 and 2024, the Company's effective tax rates were 20.3% and 19.4%, respectively.

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CRITICAL ACCOUNTING ESTIMATES

SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “