Home Bancorp, Inc.

Good morning, ladies and gentlemen, and welcome to the HomeBank Corp's first quarter 2026 earnings conference call. All participants will be in a listen-only mode. Should you need assistance, please signal a conference specialist by pressing the start 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 HomeBank Corp's Chairman, President, and CEO, John Bordelon. and Chief Financial Officer, David Kirkby. Please go ahead, Mr. Kirkby.

Thank you. Good morning, and welcome to Home Bank's first quarter 2026 earnings call. Our earnings release and investor presentation are available on our website. I ask that everyone please refer to the disclaimer for the statements in the investor presentation and our FAC file. I'll hand it over to John to make a few comments about the first quarter and outlook for 2026. John? Thanks, David. Good morning, and thank you for joining our earnings call today. We appreciate your interest in the whole bank as we discuss our results, expectations for the future, and our approach to creating long-term shareholder value. Yesterday afternoon, we reported first quarter net income of $11.4 million, or $1.46 per share. Sorry, $1.45 per share. Earnings per share were down a penny in the fourth quarter, start to the year. That interest margin expanded to 4.16%, which was 10 basis points higher than the fourth quarter and 25 basis points higher than a year ago. Return on assets also increased to 1.30% in the first quarter. This quarter margin expansion was driven by a 22 basis point decline in our cost of funds, which contributed to a 25 basis point decline in our overall cost of funds. Loans declined by 1% in the first quarter, as paydowns continue to outpace new production. We continue to see customers delay projects and transactions while they wait for additional clarity on interest rates. Despite the low balances, we maintain pricing and structured discipline, continue to generate new loan originations at attractive spreads and risk-adjusted returns. Our loan pipeline has improved in recent months, although the timing and pace of future loans Loan growth remained difficult to predict, giving continued market volatility and uncertainty around interest rates. Core deposits increased by $54 million in the quarter, or 7% annualized, as core deposits increased $118 million and were offset by non-core CD declines of $64 million. Non-sparing deposits increased $37 million and continue to represent 27% of our total deposits. As a result of our success on the deposit front, our loan-to-deposit ratio declined to approximately 90%, positioning us well for future growth. The strength of our franchise is especially evident when you consider how we've performed despite a challenging rate in the economic environment. Over the past two years, diluted earnings per share have increased by more than 25%. Return on assets has improved by nearly 20%. Net interest margin has expanded by more than 50 basis points, and our cost of deposits has declined by more than 100 basis points. We also continue to have success in Texas with loans there growing to approximately 21% of our total portfolio compared to 15% when we entered the market through an acquisition in 2022. The new Northwest Houston branch opened during the quarter and gives us full service presence in one of the fastest growing areas in the market. The branch square footage allows for significant growth in the region and will help our well-established commercial team continue to build our franchise. Several organizations have already requested to utilize the branch meeting rooms for their companies. The combination of the branch, its location, and our team of bankers should make the Tomball region very successful. Credit remains manageable. Non-performing assets increased during the quarter by $3.8 million. primarily due to the downgrade of three relationships. However, we continue to believe losses of these credits will be immaterial given the collateral protection and guarantor support. Our net charge-offs remain extremely low at just six basis points annualized. Finally, we're in the middle of our annual visits to all markets and hosting our Cajun-style crawfish balls. As we've done in previous years, executives serve our employees delicious crawfish with all the fixings and refreshments. reflecting our culture of servant leadership that is such an important driver of our success. These gatherings are a great way to embrace that culture and generate enthusiasm. The time in the branches also gives management an opportunity to answer questions from front-line staff and meet customers, both big and small. With that, I'll turn it back over to David, our Chief Financial Officer.

Thanks, John.