Company: HBCP
Filing Date: 2025-05-02
Form Type: 10-Q
Source: 0001436425-25-000018
Chunk: 15

Company: HOME BANCORP, INC.
Filing Date: 2025-05-02
Form: 10-Q
Item: Item 2
Chunk 15
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 to the total extent to which the Company is committed.

The Company is subject to certain claims and litigation arising in the ordinary course of business. In the opinion of management, after consultation with legal counsel, the ultimate disposition of these matters is not expected to have a material effect on the financial condition or results of operations of the Company.

RESULTS OF OPERATIONS

Net income for the first quarter of 2025 was $11.0 million, up $1.8 million compared to the first quarter of 2024. Diluted EPS for the first quarter of 2025 was $1.37, up $0.23 compared to the first quarter of 2024.

During the three months ended March 31, 2025, the Company provisioned $394,000 to the allowance for loan losses primarily due to loan growth. During the three months ended March 31, 2024, the Company provisioned $141,000 to the allowance for loan losses primarily due to loan growth.

Net Interest Income 

Net interest income is the difference between the interest income earned on interest-earning assets, such as loans and investment securities, and the interest expense paid on interest-bearing liabilities, such as deposits and borrowings. The Company’s net interest income is largely determined by our net interest spread, which is the difference between the average yield earned on interest-earning assets and the average rate paid on interest-bearing liabilities, and the relative amounts of interest-earning assets and interest-bearing liabilities. The Company’s tax-equivalent net interest spread was 3.10% and 2.81% for the quarters ended March 31, 2025 and 2024, respectively.

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Net interest income totaled $31.7 million for the first quarter of 2025, up $2.8 million, or 9.9%, compared to the first quarter of 2024.

The Company’s tax-equivalent net interest margin, which is net interest income as a percentage of average interest-earning assets, was 3.91% and 3.64% for the quarters ended March 31, 2025 and 2024, respectively. For the same periods, the average loan yield was 6.43% and 6.18%, respectively.

Acquired loan discount accretion included in interest income totaled $356,000 and $525,000 for the quarters ended March 31, 2025 and 2024, respectively.

The following table sets forth, for the periods indicated, information regarding