Home Bancorp, Inc.

Good morning, ladies and gentlemen, and welcome to the Homes Bank Corp. Second Quarter 2025 Earnings Conference Call. All participants will be in listen-only mode. Should you need assistance, please signal a conference specialist or person, pressing the star key, followed by zero. After today's presentation, there will be an opportunity to ask questions. Please note this event is being recorded. I would now like to turn the conference over to Home Bank Chairman, President, and CEO, John Bordone, and Chief Financial Officer, David Kirkley. Please go ahead, Mr. Kirkley.

Thank you, Natasha. Good morning, and welcome to Home Bank's second quarter 2025 earnings call. Our earnings release and investor presentation are available on our website, I'd ask that everyone please refer to the disclaimer regarding forward-looking statements in the investor presentation and our SEC filings. Now I'll hand it over to John to make a few comments about the second quarter. John? Thanks, David.

Good morning, and thank you for joining our earnings call today. We appreciate your interest in HomeBank as we discuss our results, expectations for the future, and our approach to creating long-term shareholder value. Yesterday afternoon, we reported second quarter net income of $11.3 million, or $1.45 per share, up 8 cents from the first quarter and 43 cents from a year ago. Net interest margin expanded for the fifth consecutive quarter to 4.04%, and our ROA increased by two basis points to 1.31%. The second quarter's margin expansion was primarily driven by an eight basis point increase in earning asset yields, stable interest-bearing deposit costs, loan growth, and a 6% increase in non-interest-bearing deposits. Loans grew by $17.3 million in the second quarter, or about 3%. Second quarter growth was negatively impacted by slower commercial construction activity and paydowns, which was about $20 million in the second quarter. We think growth will pick back up if we get one or two cuts in the second half of the year, but without those cuts, we think loan growth will come in at the lower end of our 4% to 6% guidance. We do expect loan yields to continue to tick higher as new originations come in around 7.4%, replacing maturing loans. We've maintained pricing discipline on new loans to ensure the bank receives a proper risk-adjusted return, which we prioritize over growth. Deposits increased at an 11% annual rate in the second quarter as we continued to focus on funding our loan growth, with core deposits and reducing our loan-to-deposit ratio to get to our 90% to 92% target range. Non-interest-bearing deposits increased by $41.9 million and remained at 27% of total deposits at the end of the quarter. Classified and non-performing loans increased primarily due to four loans downgraded during the quarter, totaling $18 million. We aren't expecting to incur any losses due to the relatively low loan-to-value, our conservative underlying standards, and proactive credit management. As a reminder, you can see on slide 16, our net charge-offs have averaged about six basis points over the last six-plus years. M&A activity nationwide has picked up over the past couple of months, which is great to see. While we have not had a transaction since 2022, we have evaluated multiple opportunities and remain committed to finding partners that are good long-term fits for home banks and shareholders. Our solid capital levels, improving valuation, stellar relationship with our regulators, and successful experience in executing prior acquisitions puts us in position to capitalize when the right opportunity is built. We feel very good about Home Bank's outlook and our ability to continue to deliver on our own high expectations. We have very talented leadership throughout the bank with decades of experience and a strong track record of performing above our peers in all economic environments. With that, I'll turn it back over to David, our Chief Financial Officer.