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What changed in HOME BANCORP, INC.'s 10-K — 2024 vs 2025

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Paragraph-level year-over-year comparison of HOME BANCORP, INC.'s 2024 and 2025 10-K annual filings, covering the Business, Risk Factors, Legal Proceedings, Cybersecurity, MD&A and Market Risk sections. Every new, removed and edited paragraph is highlighted side-by-side so you can see exactly what management changed in the 2025 report.

+172 added−174 removedSource: 10-K (2026-03-06) vs 10-K (2025-03-12)

Top changes in HOME BANCORP, INC.'s 2025 10-K

172 paragraphs added · 174 removed · 151 edited across 7 sections

Item 1. Business

Business — how the company describes what it does

31 edited+6 added−3 removed90 unchanged
Biggest changeThe applicability date for the majority of the provisions in the CRA regulations is January 1, 2026, and additional requirements will be applicable on January 1, 2027. 5 The Community Reinvestment Act requires all institutions insured by the Federal Deposit Insurance Corporation to publicly disclose their rating.
Biggest changeAs a result, the Bank will continue to be evaluated under the pre-2023 CRA regulatory framework. The Community Reinvestment Act requires all institutions insured by the Federal Deposit Insurance Corporation to publicly disclose their rating. The Bank received an “Outstanding” Community Reinvestment Act rating in its most recent federal examination. Limitations on Dividends .
Volcker Rule Regulations. Regulations have been adopted by the federal banking agencies to implement the provisions of the Dodd-Frank Act commonly referred to as the Volcker Rule.
Regulations have been adopted by the federal banking agencies to implement the provisions of the Dodd-Frank Act commonly referred to as the Volcker Rule.
A bank that has experienced rapid growth in commercial real estate lending, has notable exposure to a specific type of commercial real estate loan, or is approaching or exceeding the following supervisory criteria may be identified for further supervisory analysis with respect to real estate concentration risk: 6 • Total reported loans for construction, land development and other land represent 100% or more of the bank’s total regulatory capital; or • Total commercial real estate loans (as defined in the guidance) represent 300% or more of the bank’s total regulatory capital and the outstanding balance of the bank’s commercial real estate loan portfolio has increased 50% or more during the prior 36 months.
A bank that has experienced rapid growth in commercial real estate lending, has notable exposure to a specific type of commercial real estate loan, or is approaching or exceeding the following supervisory criteria may be identified for further supervisory analysis with respect to real estate concentration risk: • Total reported loans for construction, land development and other land represent 100% or more of the bank’s total regulatory capital; or • Total commercial real estate loans (as defined in the guidance) represent 300% or more of the bank’s total regulatory capital and the outstanding balance of the bank’s commercial real estate loan portfolio has increased 50% or more during the prior 36 months.
Recently promulgated federal regulations exclude from the Volker Rule restrictions on community banks with $10.0 billion or less in total consolidated assets and total trading assets and liabilities of 5.0% or less of total consolidated assets. The Company qualifies for this exclusion from the Volker Rule restrictions. 3 Regulation of Home Bank, N.A. General .
Recently promulgated federal regulations exclude from the Volker Rule restrictions on community banks with $10.0 billion or less in total consolidated assets and total trading assets and liabilities of 5.0% or less of total consolidated assets. The Company qualifies for this exclusion from the Volker Rule restrictions. Regulation of Home Bank, N.A. General .
While the Act maintains most of the regulatory structure established by the Dodd-Frank Act, it amends certain aspects of the regulatory framework for small depository institutions with assets of less than $10 billion and for large banks with assets of more than $50 billion.
While the Act maintains most of the regulatory structure established by the Dodd-Frank Act, it amends certain aspects of the regulatory framework for small depository institutions with assets of less than $10 billion and for large banks with assets of 2 more than $50 billion.
The Bank does not have any assets assigned to a risk category over 400%. 4 National banks must value securities available for sale at amortized cost for regulatory capital purposes.
The Bank does not have any assets assigned to a risk category over 400%. National banks must value securities available for sale at amortized cost for regulatory capital purposes.
An Item 1.05 Form 8-K will generally be due four business days after a registrant determines that a cybersecurity incident is material. See Item 1C. Cybersecurity for annual disclosures. 7
An Item 1.05 Form 8-K will generally be due four business days after a registrant determines that a cybersecurity incident is material. See Item 1C . Cybersecurity for annual disclosures.
No institution may pay a dividend if it is in default on its federal deposit insurance assessment. As of December 31, 2024, assessment rates ranged from 2.5 basis points to 32 basis points for all institutions, subject to adjustments for unsecured debt issued by the institution, unsecured debt issued by other FDIC-insured institutions, and brokered deposits held by the institution.
No institution may pay a dividend if it is in default on its federal deposit insurance assessment. As of December 31, 2025, assessment rates ranged from 2.5 basis points to 32 basis points for all institutions, subject to adjustments for unsecured debt issued by the institution, unsecured debt issued by other FDIC-insured institutions, and brokered deposits held by the institution.
At December 31, 2024, the reserve requirement remained at zero percent. Privacy and Cyber Security. Financial institutions are required to disclose their policies for collecting and protecting confidential information. Customers generally may prevent financial institutions from sharing personal financial information with nonaffiliated third parties except for third parties that market the institutions’ own products and services.
At December 31, 2025, the reserve requirement remained at zero percent. Privacy and Cyber Security. Financial institutions are required to disclose their policies for collecting and protecting confidential information. Customers generally may prevent financial institutions from sharing personal financial information with nonaffiliated third parties except for third parties that market the institutions’ own products and services.
In addition, undercapitalized institutions are subject to various regulatory restrictions, and the appropriate federal banking agency also may take any number of discretionary supervisory actions. As of December 31, 2024, the Bank was deemed a well-capitalized institution for purposes of the above regulations and as such is not subject to the above mentioned restrictions.
In addition, undercapitalized institutions are subject to various regulatory restrictions, and the appropriate federal banking agency also may take any number of discretionary supervisory actions. As of December 31, 2025, the Bank was deemed a well-capitalized institution for purposes of the above regulations and as such is not subject to the above mentioned restrictions.
The rules adopted by the SEC under the Sarbanes-Oxley Act have several requirements, including having these officers certify that: they are responsible for establishing, maintaining and regularly evaluating the effectiveness of our internal control over financial reporting; they have made certain disclosures to our independent auditors and the Audit Committee of the Board of Directors about our internal control over financial reporting; and they have included information in our quarterly and annual reports about their evaluation and whether there have been changes in our internal control over financial reporting or in other factors that could materially affect internal control over financial reporting.
The rules adopted by the SEC under the Sarbanes-Oxley Act have several requirements, including having these officers certify that: they are responsible for establishing, maintaining and regularly evaluating the effectiveness of our internal control over financial reporting; they have made certain disclosures to our independent auditors and the Audit Committee of the Board of Directors about our internal control over financial reporting; and they have included information in our quarterly and annual reports about their evaluation and whether there have been changes in our internal control over financial reporting or in other factors that could materially affect internal control over financial reporting. 3 Volcker Rule Regulations.
The Bank currently is subject to Sections 22(g) and (h) of the Federal Reserve Act, and as of December 31, 2024 was in compliance with the above restrictions. Consumer Financial Services.
The Bank currently is subject to Sections 22(g) and (h) of the Federal Reserve Act, and as of December 31, 2025 was in compliance with the above restrictions. Consumer Financial Services.
As of December 31, 2024, the Bank had $8.6 million in FHLB stock, which was in compliance with this requirement. Federal Reserve System . The FRB requires all depository institutions to maintain reserves against their transaction accounts and non-personal time deposits. Effective March 26, 2020, the Federal Reserve Board reduced reserve requirement ratios to zero percent.
As of December 31, 2025, the Bank had $2.6 million in FHLB stock, which was in compliance with this requirement. Federal Reserve System . The FRB requires all depository institutions to maintain reserves against their transaction accounts and non-personal time deposits. Effective March 26, 2020, the Federal Reserve Board reduced reserve requirement ratios to zero percent.
The Act, among other matters, expands the definition of qualified mortgages which may be held by a financial institution and simplifies the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than $10 billion by instructing the federal banking regulators to establish a single “Community Bank Leverage Ratio” of between 8 and 10 percent to replace the leverage and risk-based regulatory capital ratios. 2 Regulation of Home Bancorp, Inc.
The Act, among other matters, expands the definition of qualified mortgages which may be held by a financial institution and simplifies the regulatory capital rules for financial institutions and their holding companies with total consolidated assets of less than $10 billion by instructing the federal banking regulators to establish a single “Community Bank Leverage Ratio” of between 8 and 10 percent to replace the leverage and risk-based regulatory capital ratios.
General . The Company is a bank holding company, subject to regulation, supervision and examination by the Federal Reserve. The Federal Reserve has enforcement authority with respect to the Company similar to that of the OCC over the Bank.
Regulation of Home Bancorp, Inc. General . The Company is a bank holding company, subject to regulation, supervision and examination by the Federal Reserve. The Federal Reserve has enforcement authority with respect to the Company similar to that of the OCC over the Bank.
Benefit programs available to eligible employees include, in addition to the 401(k) retirement savings plan, health and life insurance, employee paid holidays and other benefits. We value and promote diversity and inclusion in every aspect of our business and at every level within the Company.
Benefit programs available to eligible employees include, in addition to the 401(k) retirement savings plan, an Employee Stock Ownership Plan ("ESOP"), health and life insurance, employee paid holidays and other benefits. 1 We value and promote diversity and inclusion in every aspect of our business and at every level within the Company.
Information on our website should not be considered a part of this Annual Report on Form 10-K. Human Capital Resources At December 31, 2024, we had 471 full-time employees and ten part-time employees. None of our employees are represented by a collective bargaining group, and we believe that the Company's relationship with its employees is good.
Information on our website should not be considered a part of this Annual Report on Form 10-K. Human Capital Resources At December 31, 2025, we had 486 full-time employees and eight part-time employees. None of our employees are represented by a collective bargaining group, and we believe that the Company's relationship with its employees is good.
The Bank generally may pay dividends during any calendar year in an amount up to 100% of net income for the year-to-date plus retained net income for the two preceding years, so long as it is well-capitalized after the distribution.
OCC regulations impose various restrictions on the ability of the Bank to pay dividends. The Bank generally may pay dividends during any calendar year in an amount up to 100% of net income for the year-to-date plus retained net income for the two preceding years, so long as it is well-capitalized after the distribution.
The Company has experienced heightened regulatory requirements and scrutiny following the global financial crisis and the enactment in 2010 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). Resulting reforms have caused the Company’s compliance and risk management processes, and the costs thereof, to increase. Federal law provides the federal banking regulators with substantial enforcement powers.
The Company has experienced heightened regulatory requirements and scrutiny following the global financial crisis and the enactment in 2010 of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd-Frank Act”). Resulting reforms have caused the Company’s compliance and risk management processes, and the costs thereof, to increase.
As of December 31, 2024, the Bank had $175.5 million of FHLB advances and $1.1 billion available on its line of credit with the FHLB.
As of December 31, 2025, the Bank had $3.0 million of FHLB advances and $1.3 billion available on its line of credit with the FHLB.
At December 31, 2024, the Bank exceeded all of its regulatory capital requirements, with Tier 1, Tier 1 common equity, Tier 1 common equity (to risk-weighted assets) and total risk-based capital ratios of 11.38%, 13.28%, 13.28% and 14.51%, respectively.
At December 31, 2025, the Bank exceeded all of its regulatory capital requirements, with Tier 1, Tier 1 common equity, Tier 1 common equity (to risk-weighted assets) and total risk-based capital ratios of 11.84%, 14.09%, 14.09% and 15.29%, respectively.
In determining compliance with the risk-based capital requirement, a national bank is allowed to include both core capital and supplementary capital in its total capital, provided that the amount of supplementary capital included does not exceed the national bank’s core capital.
The OCC also is authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis. 4 In determining compliance with the risk-based capital requirement, a national bank is allowed to include both core capital and supplementary capital in its total capital, provided that the amount of supplementary capital included does not exceed the national bank’s core capital.
Our principal sources of funds are customer deposits, repayments of loans, repayments of investments and funds borrowed from outside sources such as the Federal Home Loan Bank (“FHLB”) of Dallas.
The Bank is primarily engaged in attracting deposits from the general public and using those funds to invest in loans and securities. Our principal sources of funds are customer deposits, repayments of loans, repayments of investments and funds borrowed from outside sources such as the Federal Home Loan Bank (“FHLB”) of Dallas.
Since completing its initial public offering of stock in October 2008, the Company has acquired six financial institutions. On March 26, 2022, the Company completed the acquisition of Friendswood Capital Corporation ("Friendswood"), the former holding company of Texan Bank, N.A. ("Texan Bank") of Houston, Texas, expanding the Company's market area to Houston.
On March 26, 2022, the Company completed the acquisition of Friendswood Capital Corporation ("Friendswood"), the former holding company of Texan Bank, N.A. ("Texan Bank") of Houston, Texas, expanding the Company's market area to Houston.
The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions by the Office of the Comptroller of the Currency, as well as other federal regulatory agencies and the Department of Justice.
The failure to comply with the Equal Credit Opportunity Act and the Fair Housing Act could result in enforcement actions by the Office of the Comptroller of the Currency, as well as other federal regulatory agencies and the Department of Justice. 5 On October 24, 2023, the federal banking agencies, including the OCC issued a final rule designed to strengthen and modernize regulations implementing the CRA.
Additionally, financial institutions generally may not disclose consumer account numbers to any nonaffiliated third party for use in telemarketing, direct mail marketing or other marketing through electronic mail to consumers. The Bank has established policies and procedures designed to safeguard its customers’ personal financial information and to ensure compliance with applicable privacy laws.
Additionally, financial institutions generally may not disclose consumer account numbers to any nonaffiliated third party for use in telemarketing, direct mail marketing or other marketing through electronic mail to consumers.
Our policy is that we do not discriminate on the basis of race, color, religion, sex, gender, sexual orientation, ancestry, pregnancy, medical condition, age, marital status, national origin, citizenship status, disability veteran status, gender identity, genetic information, or any other status protected by law. 1 Market Area and Competition The Bank has four primary market areas across south Louisiana: Acadiana, Baton Rouge, Greater New Orleans, and the Northshore (of Lake Pontchartrain), currently, one primary market area in each of Natchez, Mississippi and the Houston, Texas area.
Our policy is that we do not discriminate on the basis of race, color, religion, sex, gender, sexual orientation, ancestry, pregnancy, medical condition, age, marital status, national origin, citizenship status, disability veteran status, gender identity, genetic information, or any other status protected by law.
The Bank established HB Investment Fund I, LLC and HB Investment Fund II, LLC, wholly-owned subsidiaries of the Bank to invest in New Markets Tax Credits (“NMTC”) and Federal Tax Credits ("FTC") in our market areas. The Bank is primarily engaged in attracting deposits from the general public and using those funds to invest in loans and securities.
The Bank established HB Investment Fund I, LLC and HB Investment Fund II, LLC, wholly-owned subsidiaries of the Bank to invest in New Markets Tax Credits (“NMTC”) and Federal Tax Credits ("FTC") in our market areas. HB Investment Fund I, LLC was dissolved in October 2025 due to the conclusion of the NMTC compliance period for this subsidiary.
The federal banking agencies recently adopted rules providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents.
The Bank has established policies and procedures designed to safeguard its customers’ personal financial information and to ensure compliance with applicable privacy laws. 7 The federal banking agencies recently adopted rules providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents.
The regulatory capital requirements generally applicable to a bank holding company are the same as the capital requirements for its subsidiary bank. For a description of the Bank's capital requirements, see “Regulation of Home Bank, N.A. - Regulatory Capital Requirements.” Federal Securities Laws.
The Federal Reserve has established minimum regulatory capital requirements generally applicable to bank holding companies. For a description of the Company's capital requirements, see “Part II, Item 8. Financial Statements and Supplementary Data - Notes to Consolidated Financial Statements - Note 17 . Regulatory Matters.” Federal Securities Laws.
FDIC-insured institutions with $10 billion or less in assets, like the Bank, continue to be examined by their applicable bank regulators. Commercial Real Estate Lending Concentrations. The federal banking agencies have issued guidance on sound risk management practices for concentrations in commercial real estate lending.
Although 6 statutory consumer protection requirements remain in force, the agency’s diminished operations have created regulatory uncertainty with respect to the supervision and enforcement of the existing consumer financial protection laws. Commercial Real Estate Lending Concentrations. The federal banking agencies have issued guidance on sound risk management practices for concentrations in commercial real estate lending.
Removed
The OCC also is authorized to impose capital requirements in excess of these standards on individual institutions on a case-by-case basis.
Added
Management considers all of our operations to be aggregated in one reportable operating segment. For additional information regarding segment reporting, see Note 2 . Summary of Significant Accounting Policies to the Consolidated Financial Statements in Item 8.
Removed
On October 24, 2023, the federal banking agencies, including the OCC issued a final rule designed to strengthen and modernize regulations implementing the CRA.
Added
Market Area and Competition The Bank has four primary market areas across south Louisiana: Acadiana, Baton Rouge, Greater New Orleans, and the Northshore (of Lake Pontchartrain), currently, one primary market area in each of Natchez, Mississippi and the Houston, Texas area. Since completing its initial public offering of stock in October 2008, the Company has acquired six financial institutions.
Removed
The Bank received an “Satisfactory” Community Reinvestment Act rating in its most recent federal examination. Limitations on Dividends . OCC regulations impose various restrictions on the ability of the Bank to pay dividends.
Added
However, in October 2025, the OCC announced several regulatory changes aimed at reducing burden and tailoring oversight for community banks. Effective January 1, 2026, the OCC will eliminate certain mandatory, non-statutory examination requirements, allowing examiners to adjust exam scope and frequency based on each bank’s size, complexity, and risk profile.
Added
The agency also introduced initiatives to simplify model risk-management expectations for smaller institutions and expand eligibility for streamlined licensing procedures for well-managed community banks. Together, these measures are designed to make supervision more risk-focused and less prescriptive, while maintaining safety and soundness standards. Federal law provides the federal banking regulators with substantial enforcement powers.
Added
The final rule was published with an April 1, 2024, effective date and staggered compliance dates; however, implementation of the 2023 final rule was stayed by a preliminary injunction. In 2025, the federal banking agencies issued a Joint Notice of Proposed Rulemaking to rescind the 2023 final rule and reinstate the prior CRA regulations.
Added
FDIC-insured institutions with $10 billion or less in assets, like the Bank, continue to be examined by their applicable bank regulators. However, in early 2025, CFPB leadership significantly scaled back the agency’s rulemaking, enforcement and supervisory activities, including pausing major enforcement actions, rescinding guidance, and narrowing priorities which has significantly reduced active oversight of financial institutions.

Item 1A. Risk Factors

Risk Factors — what could go wrong, per management

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Biggest changeThe Company continues to monitor efforts and evaluate the impact of reference rate reform on its consolidated financial statements; however, the impact is not expected to be significant. 9 Risks Related to Our Market Areas Our business is geographically concentrated in south Louisiana, southeast Texas and west Mississippi, which are areas where the oil and gas industry has a significant presence.
Biggest changeHowever, even with these policies in place, a change in interest rates can impact our results of operations or financial condition. 9 Risks Related to Our Market Areas Our business is geographically concentrated in south Louisiana, southeast Texas and west Mississippi, which are areas where the oil and gas industry has a significant presence.
Significant negative industry or economic trends, reduced estimates of future cash flows or disruptions to our business, could indicate that goodwill might be impaired. Our valuation methodology for assessing impairment requires management to make judgements and assumptions based on historical experience and to rely on projections of future operating performance.
Significant negative industry or economic trends, reduced estimates of future cash flows or disruptions to our business, could indicate that goodwill might be impaired. Our valuation methodology for assessing impairment requires management to make judgments and assumptions based on historical experience and to rely on projections of future operating performance.
Any of these factors, among others, could cause credit losses and realized and/or unrealized losses in future periods and declines in other comprehensive income, which could materially and adversely affect our business, results of operations, financial condition and prospects.
Any of these factors, among others, could cause credit losses and realized and/or unrealized losses in future periods and declines in accumulated other comprehensive income ("AOCI"), which could materially and adversely affect our business, results of operations, financial condition and prospects.
Continued fluctuations in crude oil prices could adversely affect our operations and economic conditions in some of our markets during 2025 and future periods, which could adversely affect our future results of operations.
Continued fluctuations in crude oil prices could adversely affect our operations and economic conditions in some of our markets during 2026 and future periods, which could adversely affect our future results of operations.
Excluding Paycheck Protection Program ("PPP") loans, our commercial and industrial loans increased by an aggregate of 111.5% over the same time period. Generally, multi-family residential, commercial and industrial and commercial real estate lending involve a higher degree of risk than one- to four-family residential lending due to a variety of factors.
Excluding Paycheck Protection Program ("PPP") loans, our commercial and industrial loans increased by an aggregate of 114.7% over the same time period. Generally, multi-family residential, commercial and industrial and commercial real estate lending involve a higher degree of risk than one- to four-family residential lending due to a variety of factors.
As of December 31, 2024, commercial real estate mortgage loans comprised approximately 42.6% of our loan portfolio. Commercial real estate mortgage loans generally involve a greater degree of credit risk than residential real estate mortgage loans because they typically have larger balances and are more affected by adverse conditions in the economy.
As of December 31, 2025, commercial real estate mortgage loans comprised approximately 43.4% of our loan portfolio. Commercial real estate mortgage loans generally involve a greater degree of credit risk than residential real estate mortgage loans because they typically have larger balances and are more affected by adverse conditions in the economy.
The placement of these institutions into receivership has resulted in market disruption and increased concerns that diminished depositor confidence across the banking industry in general could lead to deposit outflows that could destabilize other institutions. At December 31, 2024, we had $98.5 million in cash and cash equivalents.
The placement of these institutions into receivership has resulted in market disruption and increased concerns that diminished depositor confidence across the banking industry in general could lead to deposit outflows that could destabilize other institutions. At December 31, 2025, we had $141.6 million in cash and cash equivalents.
Municipal deposits are an important source of our cost-effective funds, and we intend to continue to solicit municipal deposits. As of December 31, 2024, the Bank held $182.5 million in municipal deposits, consisting of public funds on deposit 8 from local government entities domiciled in the States of Louisiana, Mississippi and Texas.
Municipal deposits are an important source of our cost-effective funds, and we intend to continue to solicit municipal deposits. As of December 31, 2025, the Bank held $185.1 million in municipal deposits, consisting of public funds on deposit from local government entities domiciled in the States of Louisiana, Mississippi and Texas.
At December 31, 2024, we had goodwill of $81.5 million, which represents approximately 20.6% of shareholders’ equity. See Notes 2 and 8 to the Consolidated Financial Statements for additional information concerning our goodwill and the required impairment test.
At December 31, 2025, we had goodwill of $81.5 million, which represents approximately 18.7% of shareholders’ equity. See Notes 2 and 8 to the Consolidated Financial Statements in Item 8 for additional information concerning our goodwill and the required impairment test.
Although the Company attempts to mitigate risk by diversifying its borrower base, approximately $94.6 million, or 3.5% of the Company’s loan portfolio, at December 31, 2024 was comprised of loans to borrowers in the oil and gas industry (which is also referred to as the “energy sector”).
Although the Company attempts to mitigate risk by diversifying its borrower base, approximately $67.1 million, or 2.4% of the Company’s loan portfolio, at December 31, 2025 was comprised of loans to borrowers in the oil and gas industry (which is also referred to as the “energy sector”).
As of December 31, 2024, the largest outstanding balances of our commercial real estate, commercial and industrial, and multi-family residential loans were $20.1 million, $17.8 million, and $14.3 million, respectively. If a large loan were to become non-performing, as we have experienced in the past, it can have a significant impact on our results of operations.
As of December 31, 2025, the largest outstanding balances of our commercial real estate, commercial and industrial, and multi-family residential loans were $25.5 million, $19.2 million, and $13.8 million, respectively. If a large loan were to become non-performing, as we have experienced in the past, it can have a significant impact on our results of operations.
We had an additional $21.4 million in unfunded loan commitments to companies in the energy sector at such date. At December 31, 2024, $965,000 of our loans in the energy sector were on nonaccrual status, and $1.4 million of our total allowance for loan losses was attributable to energy sector loans.
We had an additional $30.8 million in unfunded loan commitments to companies in the energy sector at such date. At December 31, 2025, none of our loans in the energy sector were on nonaccrual status, and $935,000 of our total allowance for loan losses was attributable to energy sector loans.
As of December 31, 2024, we had $30.0 million of accumulated other comprehensive losses. 11 Impairment of investment securities, goodwill, other intangible assets, or deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.
As of December 31, 2025, we had $17.8 million of AOCI. 11 Impairment of investment securities, goodwill, other intangible assets, or deferred tax assets could require charges to earnings, which could result in a negative impact on our results of operations.
As of December 31, 2024, our allowance for loan losses amounted to $32.9 million, or 1.21% of total loans and our total allowance for credit losses amounted to $35.6 million, or 1.31% of total loans. See Note 2 to the Consolidated Financial Statements for a detailed discussion of the Company's methodologies for estimating expected credit losses.
As of December 31, 2025, our allowance for loan losses amounted to $33.1 million, or 1.21% of total loans and our total allowance for credit losses amounted to $34.8 million, or 1.27% of total loans. See Note 2 to the Consolidated Financial Statements in Item 8 for a detailed discussion of the Company's methodologies for estimating expected credit losses.
Our lending activities include loans secured by commercial real estate and commercial and industrial loans. Our multi-family residential loans, commercial real estate loans and commercial and industrial loans, increased by an aggregate of 104.5%, 54.4% and 0.2% respectively, from December 31, 2020 through December 31, 2024.
Our lending activities include loans secured by commercial real estate and commercial and industrial loans. Our multi-family residential loans, commercial real estate loans and commercial and industrial loans, increased by an aggregate of 96.5%, 48.5% and 76.4% respectively, from December 31, 2021 through December 31, 2025.
As of December 31, 2024, the Bank’s construction and land loans amounted to $352.3 million, or 13.0% of our loan portfolio.
As of December 31, 2025, the Bank’s construction and land loans 8 amounted to $329.2 million, or 12.0% of our loan portfolio.
We have adopted asset and liability management policies to mitigate the potential adverse effects of changes in interest rates on net interest income or earnings. However, even with these policies in place, a change in interest rates can impact our results of operations or financial condition.
We have adopted asset and liability management policies to mitigate the potential adverse effects of changes in interest rates on net interest income or earnings.
Removed
On March 5, 2021, the administrator of LIBOR benchmarks confirmed it would cease the publication of the one week and two-month LIBOR settings immediately following the LIBOR publication on December 31, 2021, and the remaining LIBOR settings immediately following the LIBOR publication on June 30, 2023.
Removed
We have ceased originating LIBOR-based products effective December 2021 and have transitioned all remaining LIBOR based products to an alternative benchmarks.

Item 1C. Cybersecurity

Cybersecurity — threats and controls disclosure

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Biggest changeWe have established processes and systems designed to mitigate cyber risk, including regular and on-going education and training for employees, preparedness simulations and tabletop exercises, and recovery and resilience tests. We engage in regular assessments of our infrastructure, software systems, and network architecture, using internal cybersecurity experts and third-party specialists.
Biggest changeWe engage in regular assessments of our infrastructure, software systems, and network architecture, using internal cybersecurity experts and third-party specialists. We also maintain a third-party risk management program designed to identify, assess, and manage risks, including cybersecurity risks associated with our use of third-party service providers and our supply chain.
The information security program is reviewed periodically by such personnel with the goal of addressing changing threats and conditions. We employ an in-depth, layered, defensive strategy that embraces a “trust by design” philosophy when designing new products, services, and technology. We leverage people, processes, and technology as part of our efforts to manage and maintain cybersecurity controls.
The information security program is reviewed periodically by such personnel with the goal of addressing changing threats and conditions. 15 We employ an in-depth, layered, defensive strategy that embraces a “trust by design” philosophy when designing new products, services, and technology. We leverage people, processes, and technology as part of our efforts to manage and maintain cybersecurity controls.
The TSC is chaired by management within the Company and includes the Chief Risk Officer, Director of Information Security and Director of Technology Management as well as other key departmental managers throughout the entire company.
The TSC is chaired by the Chief Operations Officer within the Company and includes the Chief Risk Officer, Director of Information Security and Director of Technology Management as well as other key departmental managers throughout the entire company.
The Chairman of the CROC is an independent member of the Board of Directors and is considered an expert in technology and cybersecurity and provides regular updates on cybersecurity risk management to the Board of Directors.
The Chairman of the CROC is the Chief Operations Officer and provides regular updates on cybersecurity risk management to the Board of Directors. An independent member of the Board of Directors is an advisor and is considered a designated expert in technology and cybersecurity.
We also maintain a third-party risk management program designed to identify, assess, and manage risks, including cybersecurity risks associated with our use of third-party service providers and our supply chain. We also actively monitor our email gateways for malicious phishing email campaigns and monitor remote connections as a sizable portion of our workforce has the option to work remotely.
We also actively monitor our email gateways for malicious phishing email campaigns and monitor remote connections as a sizable portion of our workforce has the option to work remotely.
We also employ a variety of preventative and detective tools designed to monitor, block, and 15 provide alerts regarding suspicious activity, as well as to report on suspected advanced persistent threats.
We also employ a variety of preventative and detective tools designed to monitor, block, and provide alerts regarding suspicious activity, as well as to report on suspected advanced persistent threats. We have established processes and systems designed to mitigate cyber risk, including regular and on-going education and training for employees, preparedness simulations and tabletop exercises, and recovery and resilience tests.

Item 2. Properties

Properties — owned and leased real estate

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Biggest changeThe Bank owns 33 of its 43 banking offices. The Bank leases the land for one banking office in our Northshore market, and leases one banking office in Acadiana, Baton Rouge, Mississippi and Greater New Orleans, respectively, and five banking centers in the Houston market.
Biggest changeThe Bank owns 33 of its 43 banking offices. The Bank leases the land for one banking office in our Northshore market, and leases one banking office in each of Acadiana, Baton Rouge, Mississippi and Greater New Orleans, respectively, and six banking centers in the Houston market.

Item 5. Market for Registrant's Common Equity

Market for Common Equity — stock, dividends, buybacks

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Biggest changeThe Company’s purchases of its common stock made during the fourth quarter of 2024 (which were made pursuant to the 2023 Repurchase Plan) are set forth in the following table. 18 Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs October 1 - October 31, 2024 1,000 $ 48.21 1,000 312,812 November 1 - November 30, 2024 1,000 50.00 1,000 311,812 December 1 - December 31, 2024 — — — 311,812 Total 2,000 $ 49.11 2,000 311,812 Item 6.
Biggest changeThe Company’s purchases of its common stock made during the fourth quarter of 2025 (which were made pursuant to the 2025 Repurchase Plan) are set forth in the following table. 18 Period Total Number of Shares Purchased Average Price Paid per Share Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs Maximum Number of Shares that May Yet be Purchased Under the Plans or Programs October 1 - October 31, 2025 — $ — — 390,972 November 1 - November 30, 2025 — — — 390,972 December 1 - December 31, 2025 750 59.97 750 390,222 Total 750 $ 59.97 750 390,222 Item 6.
Information used was obtained from S&P Global Market Intelligence, Charlottesville, Virginia. The Company assumes no responsibility for any errors or omissions in such information. The Company did not sell any of its equity securities during 2024 that were not registered under the Securities Act of 1933. For information regarding the Company’s equity compensation plans, see Item 12 .
Information used was obtained from S&P Global Market Intelligence, Charlottesville, Virginia. The Company assumes no responsibility for any errors or omissions in such information. The Company did not sell any of its equity securities during 2025 that were not registered under the Securities Act of 1933. For information regarding the Company’s equity compensation plans, see Item 12 .
The graph below represents $100 invested in our common stock at its closing price on December 31, 2019.
The graph below represents $100 invested in our common stock at its closing price on December 31, 2020.
As of the close of business on December 31, 2024, there were 8,091,522 shares of common stock outstanding, held by approximately 596 shareholders of record, not including the number of persons or entities whose stock is held in nominee or “street” name through various brokerage firms and banks. 17 The following graph shows a comparison of the cumulative total returns for the common stock of Home Bancorp, Inc., the Nasdaq Composite Index, and the S&P US Small Cap Banks Index for the period beginning December 31, 2019 and ending December 31, 2024.
As of the close of business on December 31, 2025, there were 7,831,342 shares of common stock outstanding, held by approximately 575 shareholders of record, not including the number of persons or entities whose stock is held in nominee or “street” name through various brokerage firms and banks. 17 The following graph shows a comparison of the cumulative total returns for the common stock of Home Bancorp, Inc., the Nasdaq Composite Index, and the S&P US Small Cap Banks Index for the period beginning December 31, 2020 and ending December 31, 2025.
(b) Not applicable. (c) On October 18, 2023, the Company announced the approval of a new repurchase program (the "2023 Repurchase Plan"). Under the 2023 Repurchase Plan, the Company may purchase up to 405,000 shares, or approximately 5% of its common stock outstanding, through open market or privately negotiated transactions.
(b) Not applicable. (c) On April 21, 2025, the Company announced the approval of a new repurchase program (the "2025 Repurchase Plan"). Under the 2025 Repurchase Plan, the Company may purchase up to 400,000 shares, or approximately 5% of its common stock outstanding, through open market or privately negotiated transactions.
Period Ending Index 12/31/19 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 Home Bancorp, Inc. 100.00 73.79 112.14 110.73 119.56 134.82 NASDAQ Composite 100.00 144.07 174.88 117.00 167.80 215.86 S&P US Small Cap Banks 100.00 90.82 126.43 111.47 112.03 132.44 The stock price information shown above is not necessarily indicative of future price performance.
Period Ending Index 12/31/20 12/31/21 12/31/22 12/31/23 12/31/24 12/31/25 Home Bancorp, Inc. 100.00 151.98 150.06 162.04 182.71 233.65 NASDAQ Composite 100.00 195.99 131.12 188.05 241.92 291.16 S&P US Small Cap Banks 100.00 139.21 122.74 123.35 145.82 160.37 The stock price information shown above is not necessarily indicative of future price performance.

Item 7. Management's Discussion & Analysis

Management's Discussion & Analysis (MD&A) — revenue / margin commentary

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Biggest changeThe following table presents the allocation of the allowance for loan losses as of December 31 for the years indicated. 25 December 31, 2024 2023 2022 2021 2020 (dollars in thousands) Amount % Loans Amount % Loans Amount % Loans Amount % Loans Amount % Loans One-to four-family first mortgage $ 4,430 18.4 % $ 3,255 16.8 % $ 2,883 16.0 % $ 1,944 19.1 % $ 3,065 20.0 % Home equity loans and lines 801 2.9 688 2.7 624 2.6 508 3.2 676 3.4 Commercial real estate 13,521 42.6 14,805 46.2 13,814 47.4 10,454 43.6 18,851 37.9 Construction and land 5,484 13.0 5,415 13.2 4,680 12.9 3,572 14.1 4,155 11.2 Multi-family residential 1,090 6.6 474 4.1 572 4.1 457 4.9 1,077 4.4 Commercial and industrial 6,861 15.4 6,166 15.7 6,024 15.6 3,520 13.3 4,276 21.1 Consumer 729 1.1 734 1.3 702 1.4 634 1.8 863 2.0 Total $ 32,916 100.0 % $ 31,537 100.0 % $ 29,299 100.0 % $ 21,089 100.0 % $ 32,963 100.0 % The following table shows credit ratios at and for the periods indicated and each component of the ratio's calculation: For the Years Ended December 31, 2024 2023 2022 2021 2020 Allowance for loan losses as a percentage of total loans outstanding 1.21% 1.22% 1.21% 1.15% 1.66% Allowance for loan losses $ 32,916 $ 31,537 $ 29,299 $ 21,089 $ 32,963 Total loans outstanding $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 $ 1,979,954 Nonaccrual loans as a percentage of total loans outstanding 0.50% 0.34% 0.43% 0.72% 0.94% Total nonaccrual loans $ 13,582 $ 8,814 $ 10,513 $ 13,269 $ 18,677 Total loans outstanding $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 $ 1,979,954 Allowance for loan losses as a percentage of nonaccrual loans 242.35% 357.81% 278.69% 158.93% 176.49% Allowance for loan losses $ 32,916 $ 31,537 $ 29,299 $ 21,089 $ 32,963 Total nonaccrual loans $ 13,582 $ 8,814 $ 10,513 $ 13,269 $ 18,677 Net charge-offs during period to average loans outstanding: One-to four family residential loans —% 0.01% (0.01)% (0.04)% (0.02)% Net charge-offs $ 4 $ 31 $ (41) $ (131) $ (86) Average loans outstanding $ 458,984 $ 414,780 $ 367,570 $ 372,207 $ 422,156 Net charge-offs during period to average loans outstanding: Home equity loans and lines 0.02% 0.01% 0.02% 0.03% (0.76)% Net charge-offs $ 14 $ 6 $ 14 $ 19 $ (559) Average loans outstanding $ 73,955 $ 66,428 $ 60,023 $ 62,957 $ 73,396 Net charge-offs during period to average loans outstanding: Commercial real estate — % 0.01 % (0.03) % (0.17) % 0.01 % Net charge-offs $ — $ 71 $ (270) $ (1,337) $ 50 Average loans outstanding $ 1,203,114 $ 1,170,475 $ 1,024,610 $ 769,950 $ 728,959 26 For the Years Ended December 31, 2024 2023 2022 2021 2020 Net charge-offs during period to average loans outstanding: Construction and land (0.04) % — % — % 0.03 % (0.33) % Net charge-offs $ (123) $ — $ — $ 63 $ (688) Average loans outstanding $ 336,020 $ 328,218 $ 297,218 $ 241,725 $ 205,591 Net charge-offs during period to average loans outstanding: Multi-family residential 0.01 % — % — % — % — % Net charge-offs $ 12 $ — $ — $ — $ — Average loans outstanding $ 134,664 $ 104,166 $ 97,753 $ 87,101 $ 72,906 Net charge-offs during period to average loans outstanding: Commercial and industrial (0.17) % (0.02) % (0.10) % (0.08) % (0.24) % Net charge-offs $ (712) $ (75) $ (283) $ (286) $ (878) Average loans outstanding $ 414,362 $ 392,397 $ 294,459 $ 356,180 $ 360,930 Net charge-offs during period to average loans outstanding: Consumer (0.73) % (0.40) % (0.34) % (0.12) % (0.25) % Net charge-offs $ (231) $ (136) $ (114) $ (41) $ (105) Average loans outstanding $ 31,570 $ 33,837 $ 33,334 $ 35,647 $ 41,350 Asset Quality One of management’s key objectives has been, and continues to be, maintaining a high level of asset quality.
Biggest changeDecember 31, 2025 2024 2023 2022 2021 (dollars in thousands) Amount % Loans Amount % Loans Amount % Loans Amount % Loans Amount % Loans One-to four-family first mortgage $ 5,062 18.0 % $ 4,430 18.4 % $ 3,255 16.8 % $ 2,883 16.0 % $ 1,944 19.1 % Home equity loans and lines 1,335 3.4 801 2.9 688 2.7 624 2.6 508 3.2 Commercial real estate 14,503 43.4 13,521 42.6 14,805 46.2 13,814 47.4 10,454 43.6 Construction and land 2,813 12.0 5,484 13.0 5,415 13.2 4,680 12.9 3,572 14.1 Multi-family residential 1,499 6.4 1,090 6.6 474 4.1 572 4.1 457 4.9 Commercial and industrial 7,138 15.7 6,861 15.4 6,166 15.7 6,024 15.6 3,520 13.3 Consumer 792 1.1 729 1.1 734 1.3 702 1.4 634 1.8 Total $ 33,142 100.0 % $ 32,916 100.0 % $ 31,537 100.0 % $ 29,299 100.0 % $ 21,089 100.0 % The following table shows credit ratios at and for the periods indicated and each component of the ratio's calculation: For the Years Ended December 31, 2025 2024 2023 2022 2021 Allowance for loan losses as a percentage of total loans outstanding 1.21% 1.21% 1.22% 1.21% 1.15% Allowance for loan losses $ 33,142 $ 32,916 $ 31,537 $ 29,299 $ 21,089 Total loans outstanding $ 2,744,023 $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 Nonaccrual loans as a percentage of total loans outstanding 1.24% 0.50% 0.34% 0.43% 0.72% Total nonaccrual loans $ 34,111 $ 13,582 $ 8,814 $ 10,513 $ 13,269 Total loans outstanding $ 2,744,023 $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 Allowance for loan losses as a percentage of nonaccrual loans 97.16% 242.35% 357.81% 278.69% 158.93% Allowance for loan losses $ 33,142 $ 32,916 $ 31,537 $ 29,299 $ 21,089 Total nonaccrual loans $ 34,111 $ 13,582 $ 8,814 $ 10,513 $ 13,269 26 For the Years Ended December 31, 2025 2024 2023 2022 2021 Net charge-offs during period to average loans outstanding: One-to four family residential loans —% —% 0.01% (0.01)% (0.04)% Net charge-offs $ (3) $ 4 $ 31 $ (41) $ (131) Average loans outstanding $ 500,162 $ 458,984 $ 414,780 $ 367,570 $ 372,207 Net charge-offs during period to average loans outstanding: Home equity loans and lines 0.04% 0.02% 0.01% 0.02% 0.03% Net charge-offs $ 36 $ 14 $ 6 $ 14 $ 19 Average loans outstanding $ 83,034 $ 73,955 $ 66,428 $ 60,023 $ 62,957 Net charge-offs during period to average loans outstanding: Commercial real estate — % — % 0.01 % (0.03) % (0.17) % Net charge-offs $ (21) $ — $ 71 $ (270) $ (1,337) Average loans outstanding $ 1,186,210 $ 1,203,114 $ 1,170,475 $ 1,024,610 $ 769,950 Net charge-offs during period to average loans outstanding: Construction and land (0.03) % (0.04) % — % — % 0.03 % Net charge-offs $ (101) $ (123) $ — $ — $ 63 Average loans outstanding $ 342,867 $ 336,020 $ 328,218 $ 297,218 $ 241,725 Net charge-offs during period to average loans outstanding: Multi-family residential — % 0.01 % — % — % — % Net charge-offs $ — $ 12 $ — $ — $ — Average loans outstanding $ 182,366 $ 134,664 $ 104,166 $ 97,753 $ 87,101 Net charge-offs during period to average loans outstanding: Commercial and industrial (0.12) % (0.17) % (0.02) % (0.10) % (0.08) % Net charge-offs $ (510) $ (712) $ (75) $ (283) $ (286) Average loans outstanding $ 417,218 $ 414,362 $ 392,397 $ 294,459 $ 356,180 Net charge-offs during period to average loans outstanding: Consumer (1.02) % (0.73) % (0.40) % (0.34) % (0.12) % Net charge-offs $ (309) $ (231) $ (136) $ (114) $ (41) Average loans outstanding $ 30,406 $ 31,570 $ 33,837 $ 33,334 $ 35,647 27 Asset Quality One of management’s key objectives has been, and continues to be, maintaining a high level of asset quality.
Income from bank card fees for 2024 was down $526,000, or 7.5%, from 2023 primarily due to decreased transaction activity by our cardholders. Gain on sale of loans for 2024 decreased $346,000, or 42.4%, compared to 2023, primarily due to less sales of SBA loans in 2024 compared to 2023.
Income from bank card fees for 2024 was down $526,000, or 7.5%, from 2023, primarily due to to decreased transaction activity by our cardholders. Gain on sale of loans for 2024 decreased $346,000, or 42.4%, compared to 2023, primarily due to less sales of SBA loans in 2024 compared to 2023.
Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation 28 processes that meet the objectives set forth in the policy statement.
Generally, the policy statement recommends that institutions have effective systems and controls to identify, monitor and address asset quality problems; that management analyze all significant factors that affect the collectability of the portfolio in a reasonable manner; and that management establish acceptable allowance evaluation processes that meet the objectives set forth in the policy statement.
The determination of fair value as of the acquisition date requires management to consider various factors that involve judgment and estimation, including the application of discount rates, prepayment rates, 22 attrition rates, future estimates of interest rates, as well as many other assumptions.
The determination of fair value as of the acquisition date requires management to consider various factors that involve judgment and estimation, including the application of discount rates, prepayment rates, attrition rates, future estimates of interest rates, as well as many other assumptions.
Acquired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the respective loans. 34 The following table displays the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities.
Acquired loans were recorded at fair value upon acquisition and accrete interest income over the remaining life of the respective loans. 35 The following table displays the dollar amount of changes in interest income and interest expense for major components of interest-earning assets and interest-bearing liabilities.
"Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Allowance for Credit Losses" provides additional information on the changes in the ALL and ACL. 35 Noninterest Income The following table illustrates the primary components of noninterest income for the years indicated.
"Management's Discussion and Analysis of Financial Condition and Results of Operations - Financial Condition - Allowance for Credit Losses" provides additional information on the changes in the ALL and ACL. 36 Noninterest Income The following table illustrates the primary components of noninterest income for the years indicated.
Occupancy expense for 2024 was up $457,000, or 4.7%, compared to 2023, primarily due to an additional leases in our Houston market. In 2024, the Company recorded a $341,000 expense related to foreclosed assets, compared to a $547,000 reversal in 2023, primarily due to a $769,000 recovery of a previous loss on a foreclosed asset.
Occupancy expense for 2024 was up $457,000, or 4.7%, compared to 2023, primarily due to an additional lease in our Houston market. In 2024, the Company recorded a $341,000 expenses related to foreclosed assets, compared to a $547,000 reversal in 2023, primarily due to a $769,000 recovery of a previous loss on a foreclosed asset.
Based on the Company’s interest rate risk model, the table below sets forth the results of immediate and sustained changes in interest rates as of December 31, 2024.
Based on the Company’s interest rate risk model, the table below sets forth the results of immediate and sustained changes in interest rates as of December 31, 2025.
The required payments under such commitments and other contractual cash commitments as of December 31, 2024 are shown in the following table.
The required payments under such commitments and other contractual cash commitments as of December 31, 2025 are shown in the following table.
A reconciliation of GAAP to non-GAAP disclosures is included in the table below. 21 Non-GAAP Reconciliation As of or For the Years Ended December 31, (dollars in thousands, except per share data) 2024 2023 2022 2021 2020 Book value per common share $ 48.95 $ 45.04 $ 39.82 $ 41.27 $ 36.82 Less: Intangibles 10.51 10.59 10.62 7.27 7.22 Tangible book value per common share 38.44 34.45 29.20 34.00 29.60 Net Income 36,427 40,240 34,072 48,621 24,765 Add: CDI amortization, net of tax 1,049 1,264 1,266 919 1,074 Non-GAAP tangible income 37,476 41,504 35,338 49,540 25,839 Return on common equity 9.56 % 11.59 % 10.16 % 14.38 % 7.83 % Add: Intangibles 3.12 4.36 3.77 3.60 2.41 Return on average tangible common equity 12.68 % 15.95 % 13.93 % 17.98 % 10.24 % CRITICAL ACCOUNTING ESTIMATES SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.
A reconciliation of GAAP to non-GAAP disclosures is included in the table below. 21 Non-GAAP Reconciliation As of or For the Years Ended December 31, (dollars in thousands, except per share data) 2025 2024 2023 2022 2021 Book value per common share $ 55.56 $ 48.95 $ 45.04 $ 39.82 $ 41.27 Less: Intangibles 10.72 10.51 10.59 10.62 7.27 Tangible book value per common share 44.84 38.44 34.45 29.20 34.00 Net Income 46,062 36,427 40,240 34,072 48,621 Add: CDI amortization, net of tax 859 1,049 1,264 1,266 919 Non-GAAP tangible income 46,921 37,476 41,504 35,338 49,540 Return on common equity 11.14 % 9.56 % 11.59 % 10.16 % 14.38 % Add: Intangibles 3.11 3.12 4.36 3.77 3.60 Return on average tangible common equity 14.25 % 12.68 % 15.95 % 13.93 % 17.98 % CRITICAL ACCOUNTING ESTIMATES SEC guidance requires disclosure of “critical accounting estimates.” The SEC defines “critical accounting estimates” as those estimates made in accordance with generally accepted accounting principles that involve a significant level of estimation uncertainty and have had or are reasonably likely to have a material impact on the financial condition or results of operations of the registrant.
The provision for loan losses during 2024 reflected our assessment of the change in expected losses due primarily to loan growth during the year. Net charge-offs were $1.0 million for 2024, compared to net charge-offs of $103,000 and $694,000 for 2023 and 2022, respectively.
The provision for loan losses during 2025 reflected our assessment of the change in expected losses due primarily to loan growth during the year. Net charge-offs were $908,000 for 2025, compared to net charge-offs of $1.0 million and $103,000 for 2024 and 2023, respectively.
In addition to classified assets, assets which do not currently expose the Bank to sufficient risk to be classified may be categorized as "special mention." Special mention assets have an existing weakness that could cause future impairment. At December 31, 2024 and 2023, we had a total of $35.8 million and $28.2 million, respectively, in loans classified as substandard.
In addition to classified assets, assets which do not currently expose the Bank to sufficient risk to be classified may be categorized as "special mention." Special mention assets have an existing weakness that could cause future impairment. At December 31, 2025 and 2024, we had a total of $61.1 million and $35.8 million, respectively, in loans classified as substandard.
At December 31, 2024 and 2023, loans identified as individually evaluated for expected losses were $5.0 million and $4.2 million, respectively. Due to the adoption of ASC 326, total loans identified as impaired and individually evaluated at December 31, 2024 included $1.3 million of acquired loans, of which none were acquired with deteriorated credit quality.
At December 31, 2025 and 2024, loans identified as individually evaluated for expected losses were $6.2 million and $5.0 million, respectively. Due to the adoption of ASC 326, total loans identified as impaired and individually evaluated at December 31, 2025 included $1.2 million of acquired loans, of which none were acquired with deteriorated credit quality.
For more information on the adoption of ASC 326, refer to Note 2 of the Consolidated Financial Statements. 27 The following tables provide a summary of loans individually evaluated for expected losses as of the dates indicated.
For more information on the adoption of ASC 326, refer to Note 2 of the Consolidated Financial Statements in Item 8. The following tables provide a summary of loans individually evaluated for expected losses as of the dates indicated.
For the year ended December 31, 2024, the Company provisioned $2.4 million of the allowance for loan losses compared to a provision of $2.3 million for the year ended December 31, 2023. The increase in the provision for loan losses during 2024 and 2023 primarily reflected our loan growth during the year.
For the year ended December 31, 2025, the Company provisioned $1.1 million of the allowance for loan losses compared to a provision of $2.4 million for the year ended December 31, 2024. The increase in the provision for loan losses during 2025 and 2024 primarily reflected our loan growth during the year.
During 2024 and 2023, such derivatives were used to hedge the variable cost associated with existing variable rate liabilities. Refer to Note 14. Derivatives and Hedging Activities of the Consolidated Financial Statements for more information on the effects of the derivative financial instruments on the consolidated financial statements.
During 2025 and 2024, such derivatives were used to hedge the variable cost associated with existing variable rate liabilities. Refer to Note 14. Derivatives and Hedging Activities of the Consolidated Financial Statements in Item 8 for more information on the effects of the derivative financial instruments on the consolidated financial statements.
We follow financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States. Our accounting policies are discussed in detail in Note 2 - Summary of Significant Accounting Policies in the accompanying notes to the consolidated financial statements included elsewhere in this report.
We follow financial accounting and reporting policies that are in accordance with accounting principles generally accepted in the United States. Our accounting policies are discussed in detail in Note 2 - Summary of Significant Accounting Policies in the accompanying notes to the Consolidated Financial Statements included in Item 8.
See Note 1 5 to the Consolidated Financial Statements for additional information concerning our income taxes. LIQUIDITY AND CAPITAL RESOURCES Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, investment securities and other investments and other funds provided from operations.
See Note 15 to the Consolidated Financial Statements in Item 8 for additional information concerning our income taxes. LIQUIDITY AND CAPITAL RESOURCES Our primary sources of funds are from deposits, amortization of loans, loan prepayments and the maturity of loans, investment securities and other investments and other funds provided from operations.
Net loan charge-offs for 2024 were primarily attributable to originated commercial and industrial, consumer and construction and land loans. Charge-offs during 2023 were primarily attributable to an originated commercial and industrial loan and consumer loans. Item 7.
Net loan charge-offs for 2025 were primarily attributable to commercial and industrial, consumer, and construction and land loans. Net loan charge-offs during 2024 were primarily attributable to commercial and industrial, consumer, and construction and land loans. Item 7.
Provision for Loan Losses For the year ended December 31, 2024, the Company provisioned $2.4 million to the allowance for loan losses compared to a provision of $2.3 million and $7.5 million for 2023 and 2022, respectively.
Provision for Loan Losses For the year ended December 31, 2025, the Company provisioned $1.1 million to the allowance for loan losses compared to a provision of $2.4 million and $2.3 million for 2024 and 2023, respectively.
Shift in Interest Rates (in bps) % Change in Projected Net Interest Income +200 0.4 +100 0.3 -100 (1.0) -200 (2.3) The actual impact of changes in interest rates will depend on many factors.
Shift in Interest Rates (in bps) % Change in Projected Net Interest Income +200 7.1 +100 3.6 -100 (4.1) -200 (8.3) The actual impact of changes in interest rates will depend on many factors.
Taxable equivalent (“TE”) ratios have been calculated using a marginal tax rate of 21%. 19 As of December 31, (dollars in thousands) 2024 2023 2022 2021 2020 Selected Financial Condition Data: Total assets $ 3,443,668 $ 3,320,122 $ 3,228,280 $ 2,938,244 $ 2,591,850 Cash and cash equivalents 98,548 75,831 87,401 601,443 187,952 Interest-bearing deposits in banks — 99 349 349 349 Investment securities: Available for sale 402,792 433,926 486,518 327,632 254,752 Held to maturity 1,065 1,065 1,075 2,102 2,934 Loans receivable, net 2,685,269 2,550,101 2,401,451 1,819,004 1,946,991 Intangible assets 85,044 86,372 87,973 61,949 63,112 Deposits 2,780,696 2,670,624 2,633,181 2,535,849 2,213,821 Other borrowings 5,539 5,539 5,539 5,539 5,539 Subordinated debt, net of issuance cost 54,459 54,241 54,013 — — Federal Home Loan Bank advances 175,546 192,713 176,213 26,046 28,824 Shareholders’ equity 396,088 367,444 329,954 351,903 321,842 For the Years Ended December 31, (dollars in thousands, except per share data) 2024 2023 2022 2021 2020 Selected Operating Data: Interest income $ 184,767 $ 163,663 $ 125,930 $ 106,902 $ 104,129 Interest expense 64,505 42,971 7,915 5,913 11,918 Net interest income 120,262 120,692 118,015 100,989 92,211 Provision (reversal) for loan losses 2,415 2,341 7,489 (10,161) 12,728 Net interest income after provision for loan losses 117,847 118,351 110,526 111,150 79,483 Noninterest income 14,625 14,636 13,885 16,271 14,305 Noninterest expense 87,289 82,841 81,909 66,982 62,981 Income before income taxes 45,183 50,146 42,502 60,439 30,807 Income taxes 8,756 9,906 8,430 11,818 6,042 Net income $ 36,427 $ 40,240 $ 34,072 $ 48,621 $ 24,765 Earnings per share - basic $ 4.58 $ 5.02 $ 4.19 $ 5.80 $ 2.86 Earnings per share - diluted $ 4.55 $ 4.99 $ 4.16 $ 5.77 $ 2.85 Cash dividends per share $ 1.01 $ 1.00 $ 0.93 $ 0.91 $ 0.88 As of or For the Years Ended December 31, 2024 2023 2022 2021 2020 Selected Operating Ratios: (1) Average yield on interest-earning assets (TE) 5.74 % 5.28 % 4.19 % 4.11 % 4.48 % Average rate on interest-bearing liabilities 2.90 2.08 0.41 0.35 0.76 Average interest rate spread (TE)(2) 2.84 3.20 3.78 3.76 3.72 Net interest margin (TE)(3) 3.71 3.89 3.92 3.88 3.96 Average interest-earning assets to average interest-bearing liabilities 143.29 148.73 154.87 152.48 146.05 Noninterest expense to average assets 2.58 2.54 2.58 2.42 2.53 Efficiency ratio (4) 64.71 61.21 62.10 57.12 59.13 Return on average assets 1.08 1.23 1.07 1.76 0.99 Return on average common equity 9.56 11.59 10.16 14.38 7.83 20 As of or For the Years Ended December 31, 2024 2023 2022 2021 2020 Return on average tangible common equity (Non-GAAP) (7) 12.68 15.95 13.93 17.98 10.24 Common stock dividend payout ratio 22.20 20.04 22.36 15.77 30.88 Average equity to average assets 11.26 10.64 10.55 12.22 12.69 Book value per common share $ 48.95 $ 45.04 $ 39.82 $ 41.27 $ 36.82 Tangible book value per common share (Non-GAAP) (8) 38.44 34.45 29.20 34.00 29.60 Asset Quality Ratios: (5) Non-performing loans as a percent of total loans receivable 0.50 % 0.34 % 0.43 % 0.72 % 0.61 % Non-performing assets as a percent of total assets 0.45 0.31 0.34 0.49 0.95 Allowance for loan losses as a percent of non-performing loans as of end of period 242.1 357.81 278.6 158.9 110.0 Allowance for loan losses as a percent of net loans as of end of period 1.21 1.22 1.15 1.15 1.29 Capital Ratios: (5) (6) Tier 1 risk-based capital ratio 13.28 % 12.98 % 12.43 % 14.66 % 13.92 % Leverage capital ratio 11.38 10.98 10.43 9.77 9.68 Total risk-based capital ratio 14.51 14.23 13.63 15.85 15.18 (1) With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.
As of December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Selected Financial Condition Data: Total assets $ 3,492,626 $ 3,443,668 $ 3,320,122 $ 3,228,280 $ 2,938,244 Cash and cash equivalents 141,605 98,548 75,831 87,401 601,443 Interest-bearing deposits in banks — — 99 349 349 Investment securities: Available for sale 391,448 402,792 433,926 486,518 327,632 Held to maturity 1,065 1,065 1,065 1,075 2,102 Loans receivable, net 2,710,881 2,685,269 2,550,101 2,401,451 1,819,004 Intangible assets 83,957 85,044 86,372 87,973 61,949 Deposits 2,972,806 2,780,696 2,670,624 2,633,181 2,535,849 Other borrowings — 5,539 5,539 5,539 5,539 Subordinated debt, net of issuance cost 54,675 54,459 54,241 54,013 — Federal Home Loan Bank advances 3,024 175,546 192,713 176,213 26,046 Shareholders’ equity 435,094 396,088 367,444 329,954 351,903 For the Years Ended December 31, (dollars in thousands, except per share data) 2025 2024 2023 2022 2021 Selected Operating Data: Interest income $ 193,772 $ 184,767 $ 163,663 $ 125,930 $ 106,902 Interest expense 60,518 64,505 42,971 7,915 5,913 Net interest income 133,254 120,262 120,692 118,015 100,989 Provision (reversal) for loan losses 1,134 2,415 2,341 7,489 (10,161) Net interest income after provision for loan losses 132,120 117,847 118,351 110,526 111,150 Noninterest income 15,461 14,625 14,636 13,885 16,271 Noninterest expense 89,563 87,289 82,841 81,909 66,982 Income before income taxes 58,018 45,183 50,146 42,502 60,439 Income taxes 11,956 8,756 9,906 8,430 11,818 Net income $ 46,062 $ 36,427 $ 40,240 $ 34,072 $ 48,621 Earnings per share - basic $ 5.93 $ 4.58 $ 5.02 $ 4.19 $ 5.80 Earnings per share - diluted $ 5.87 $ 4.55 $ 4.99 $ 4.16 $ 5.77 Cash dividends per share $ 1.14 $ 1.01 $ 1.00 $ 0.93 $ 0.91 As of or For the Years Ended December 31, 2025 2024 2023 2022 2021 Selected Operating Ratios: (1) Average yield on interest-earning assets (TE) 5.88 % 5.74 % 5.28 % 4.19 % 4.11 % Average rate on interest-bearing liabilities 2.68 2.90 2.08 0.41 0.35 Average interest rate spread (TE)(2) 3.20 2.84 3.20 3.78 3.76 Net interest margin (TE)(3) 4.03 3.71 3.89 3.92 3.88 Average interest-earning assets to average interest-bearing liabilities 144.80 143.29 148.73 154.87 152.48 20 As of or For the Years Ended December 31, 2025 2024 2023 2022 2021 Noninterest expense to average assets 2.58 2.58 2.54 2.58 2.42 Efficiency ratio (4) 60.22 64.71 61.21 62.10 57.12 Return on average assets 1.33 1.08 1.23 1.07 1.76 Return on average common equity 11.14 9.56 11.59 10.16 14.38 Return on average tangible common equity (Non-GAAP) (7) 14.25 12.68 15.95 13.93 17.98 Common stock dividend payout ratio 19.42 22.20 20.04 22.36 15.77 Average equity to average assets 11.91 11.26 10.64 10.55 12.22 Book value per common share $ 55.56 $ 48.95 $ 45.04 $ 39.82 $ 41.27 Tangible book value per common share (Non-GAAP) (8) 44.84 38.44 34.45 29.20 34.00 Asset Quality Ratios: (5) Non-performing loans as a percent of total loans receivable 1.25 % 0.50 % 0.34 % 0.43 % 0.72 % Non-performing assets as a percent of total assets 1.03 0.45 0.31 0.34 0.49 Allowance for loan losses as a percent of non-performing loans as of end of period 97.0 242.1 357.8 278.6 158.9 Allowance for loan losses as a percent of net loans as of end of period 1.21 1.21 1.22 1.15 1.15 Capital Ratios: (5) (6) Tier 1 risk-based capital ratio 14.09 % 13.28 % 12.98 % 12.43 % 14.66 % Leverage capital ratio 11.84 11.38 10.98 10.43 9.77 Total risk-based capital ratio 15.29 14.51 14.23 13.63 15.85 (1) With the exception of end-of-period ratios, all ratios are based on average daily balances during the respective periods.
These factors include the Company’s ability to achieve expected growth in interest-earning assets and maintain a desired mix of interest-earning assets and interest-bearing liabilities, the actual timing of asset and liability repricing, the magnitude of interest rate changes and corresponding movement in interest rate spreads and the level of success of asset/liability management strategies. 38 Market risk is the risk of loss from adverse changes in market prices and rates.
These factors include the Company’s ability to achieve expected growth in interest-earning assets and maintain a desired mix of interest-earning assets and interest-bearing liabilities, the actual timing of asset and liability repricing, the magnitude of interest rate changes and corresponding movement in interest rate spreads and the level of success of asset/liability management strategies.
We primarily have utilized the following strategies in our efforts to manage interest rate risk: • we have increased our originations of shorter term loans, particularly commercial real estate and commercial and industrial loans; • we generally sell our conforming long-term (30-year) fixed-rate one- to four--family residential mortgage loans into the secondary market; and • we have invested in securities, consisting primarily of mortgage-backed securities and collateral mortgage obligations, with relatively short average lives, generally three to five years, and we maintain adequate amounts of liquid assets.
The extent of the movement of interest rates is an uncertainty that could have a negative impact on future earnings. 39 We primarily have utilized the following strategies in our efforts to manage interest rate risk: • we have increased our originations of shorter term loans, particularly commercial real estate and commercial and industrial loans; • we generally sell our conforming long-term (30-year) fixed-rate one- to four--family residential mortgage loans into the secondary market; and • we have invested in securities, consisting primarily of mortgage-backed securities and collateral mortgage obligations, with relatively short average lives, generally three to five years, and we maintain adequate amounts of liquid assets.
Key components of the Company's performance in 2024 are summarized below. • Assets increased $123.5 million, or 3.7%, from December 31, 2023 to $3.4 billion at December 31, 2024. • Loans increased by $136.5 million, or 5.3%, from December 31, 2023 to $2.7 billion at December 31, 2024. • During the year ended December 31, 2024, the Company provisioned $2.4 million of the allowance for loan losses compared to a $2.3 million provisioned for the year ended December 31, 2023. • The ALL totaled $32.9 million, or 1.21% of total loans, at December 31, 2024.
Key components of the Company's performance in 2025 are summarized below. • Assets increased $49.0 million, or 1.4%, from December 31, 2024 to $3.5 billion at December 31, 2025. • Loans increased by $25.8 million, or 1.0%, from December 31, 2024 to $2.7 billion at December 31, 2025. • During the year ended December 31, 2025, the Company provisioned $1.1 million of the allowance for loan losses compared to a $2.4 million provisioned for the year ended December 31, 2024. • The allowance for loan losses ("ALL") totaled $33.1 million, or 1.21% of total loans, at December 31, 2025.
Management has determined that the declines in the fair value of these securities are due primarily to the rising interest rate environment and were not attributable to credit losses. The Company has the intent and ability to hold the securities until maturity or until anticipated recovery.
Management has determined that the declines in the fair value of these securities were not attributable to credit losses. The Company has the intent and ability to hold the securities until maturity or until anticipated recovery.
At December 31, 2024, shareholders’ equity totaled $396.1 million, up $28.6 million, or 7.8%, compared to $367.4 million at December 31, 2023. The increase was primarily due to the Company’s earnings for the year ended December 31, 2024 and a reduction in accumulated other comprehensive loss, partially offset by shareholders' dividends and repurchases of shares of the Company's common stock.
At December 31, 2025, shareholders’ equity totaled $435.1 million, up $39.0 million, or 9.8%, compared to $396.1 million at December 31, 2024. The increase was primarily due to the Company’s earnings for the year ended December 31, 2025 and a reduction in accumulated other comprehensive loss, partially offset by shareholders' dividends and repurchases of shares of the Company's common stock.
From June 30, 2027, the Notes bear interest at a floating rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 282 basis points. The Notes may be 32 redeemed by the Company, in whole or in part, on or after June 30, 2027.
From June 30, 2027, the Notes bear interest at a floating rate equal to the then current three-month term secured overnight financing rate (“SOFR”), plus 282 basis points. The Notes may be redeemed by the Company, in whole or in part, on or after June 30, 2027. The Notes are intended to qualify as Tier 2 capital for regulatory purposes.
December 31, (dollars in thousands) 2024 2023 2022 2021 2020 Real estate loans: One- to four-family first mortgage $ 501,225 $ 433,401 $ 389,616 $ 350,843 $ 395,638 Home equity loans and lines 79,097 68,977 61,863 60,312 67,700 Commercial real estate 1,158,781 1,192,691 1,152,537 801,624 750,623 Construction and land 352,263 340,724 313,175 259,652 221,823 Multi-family residential 178,568 107,263 100,588 90,518 87,332 Total real estate loans 2,269,934 2,143,056 2,017,779 1,562,949 1,523,116 Other loans: Commercial and industrial 418,627 405,659 377,894 244,123 417,926 Consumer 29,624 32,923 35,077 33,021 38,912 Total other loans 448,251 438,582 412,971 277,144 456,838 Total loans $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 $ 1,979,954 The following table reflects contractual loan maturities as of December 31, 2024, unadjusted for scheduled principal reductions, prepayments, or repricing opportunities.
December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Real estate loans: One- to four-family first mortgage $ 493,446 $ 501,225 $ 433,401 $ 389,616 $ 350,843 Home equity loans and lines 92,574 79,097 68,977 61,863 60,312 Commercial real estate 1,190,388 1,158,781 1,192,691 1,152,537 801,624 Construction and land 329,227 352,263 340,724 313,175 259,652 Multi-family residential 177,825 178,568 107,263 100,588 90,518 Total real estate loans 2,283,460 2,269,934 2,143,056 2,017,779 1,562,949 Other loans: Commercial and industrial 430,517 418,627 405,659 377,894 244,123 Consumer 30,046 29,624 32,923 35,077 33,021 Total other loans 460,563 448,251 438,582 412,971 277,144 Total loans $ 2,744,023 $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 The following table reflects contractual loan maturities as of December 31, 2025, unadjusted for scheduled principal reductions, prepayments, or repricing opportunities.
The Company’s effective tax rate was 19.4%, 19.8%, and 19.8% for 2024, 2023 and 2022, respectively. The Company's effective tax rate in 2024 decreased compared to 2023 due to variances in items that are non-taxable or non-deductible. The Company's effective tax rate in 2023 remained consistent with 2022.
The Company’s effective tax rate was 20.6%, 19.4%, and 19.8% for 2025, 2024 and 2023, respectively. The Company's effective tax rate in 2025 increased compared to 2024 due to variances in items that are non-taxable or non-deductible. The Company's effective tax rate in 2024 decreased compared to 2023 due to variances in items that are non-taxable or non-deductible.
December 31, (dollars in thousands) 2024 2023 2022 3 months or less $ 134,885 $ 46,372 $ 19,826 3 - 6 months 45,424 33,421 13,646 6 - 12 months 38,623 89,262 26,620 12 - 36 months 8,538 20,366 8,040 More than 36 months 922 1,312 1,310 Total certificates of deposit greater than $250,000 $ 228,392 $ 190,733 $ 69,442 Subordinated Debt On June 30, 2022, the Company issued $ 55.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due 2032 (the "Notes").
December 31, (dollars in thousands) 2025 2024 2023 3 months or less $ 137,794 $ 134,885 $ 46,372 3 - 6 months 72,789 45,424 33,421 6 - 12 months 43,662 38,623 89,262 12 - 36 months 2,236 8,538 20,366 More than 36 months 381 922 1,312 Total certificates of deposit greater than $250,000 $ 256,862 $ 228,392 $ 190,733 Subordinated Debt On June 30, 2022, the Company issued $ 55.0 million in aggregate principal amount of its 5.75% Fixed-to-Floating Rate Subordinated Notes due 2032 (the "Notes").
For the Years Ended December 31, (dollars in thousands) 2024 2023 2022 2021 2020 Allowance for loan losses: Beginning balance $ 31,537 $ 29,299 $ 21,089 $ 32,963 $ 17,868 ASC 326 adoption impact — — — — 4,633 Provision for acquired PCD loans — — 1,415 — — Provision for loan losses 2,415 2,341 7,489 (10,161) 12,728 Loans charged off: One- to four-family first mortgage — (12) (80) (176) (99) Home equity loans and lines (22) — — (6) (575) Commercial real estate — (29) (270) (1,337) (5) Construction and land (123) — — — (688) Multi-family residential — — — — — Commercial and industrial (875) (255) (792) (599) (984) Consumer (265) (175) (256) (187) (250) Recoveries on charged off loans 249 368 704 592 335 Ending balance - allowance for loan losses $ 32,916 $ 31,537 $ 29,299 $ 21,089 $ 32,963 Allowance for unfunded lending commitments: Beginning balance $ 2,594 $ 2,093 $ 1,815 $ 1,425 $ — ASC 326 adoption impact — — — — 1,425 Provision for losses on unfunded commitments 106 501 278 390 — Ending balance - allowance for unfunded commitments 2,700 2,594 2,093 1,815 1,425 Total allowance for credit losses $ 35,616 $ 34,131 $ 31,392 $ 22,904 $ 34,388 At December 31, 2024, the ALL totaled $32.9 million, or 1.21% of total loans, and the ACL, which includes the reserve for unfunded lending commitments, totaled $35.6 million, or 1.31% of total loans.
For the Years Ended December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Allowance for loan losses: Beginning balance $ 32,916 $ 31,537 $ 29,299 $ 21,089 $ 32,963 Provision for acquired PCD loans — — — 1,415 — Provision for loan losses 1,134 2,415 2,341 7,489 (10,161) Loans charged off: One- to four-family first mortgage (14) — (12) (80) (176) Home equity loans and lines — (22) — — (6) Commercial real estate (21) — (29) (270) (1,337) Construction and land (101) (123) — — — Multi-family residential — — — — — Commercial and industrial (865) (875) (255) (792) (599) Consumer (362) (265) (175) (256) (187) Recoveries on charged off loans 455 249 368 704 592 Ending balance - allowance for loan losses $ 33,142 $ 32,916 $ 31,537 $ 29,299 $ 21,089 Allowance for unfunded lending commitments: Beginning balance $ 2,700 $ 2,594 $ 2,093 $ 1,815 $ 1,425 (Reversal) provision for losses on unfunded commitments (1,075) 106 501 278 390 Ending balance - allowance for unfunded commitments 1,625 2,700 2,594 2,093 1,815 Total allowance for credit losses $ 34,767 $ 35,616 $ 34,131 $ 31,392 $ 22,904 25 At December 31, 2025, the ALL totaled $33.1 million, or 1.21% of total loans, and the ACL, which includes the reserve for unfunded lending commitments, totaled $34.8 million, or 1.27% of total loans.
December 31, (dollars in thousands) 2024 2023 2022 2021 2020 Nonaccrual loans: Real estate loans: One- to four-family first mortgage $ 7,039 $ 1,600 $ 2,300 $ 3,575 $ 3,838 Home equity loans and lines 279 208 34 38 63 Commercial real estate 3,304 5,203 6,945 8,431 12,298 Construction and land 1,622 1,181 315 258 469 Multi-family residential — — — — — Other loans: Commercial and industrial 1,311 331 378 763 1,717 Consumer 27 291 541 204 292 Total nonaccrual loans 13,582 8,814 10,513 13,269 18,677 Accruing loans 90 days or more past due 16 — 2 6 2 Total nonperforming loans 13,598 8,814 10,515 13,275 18,679 Foreclosed assets and ORE 2,010 1,575 461 1,189 1,302 Total nonperforming assets 15,608 10,389 10,976 14,464 19,981 Performing troubled debt restructurings (1) — — 6,205 4,963 2,085 Total nonperforming assets and troubled debt restructurings $ 15,608 $ 10,389 $ 17,181 $ 19,427 $ 22,066 Nonperforming loans to total loans 0.50 % 0.34 % 0.43 % 0.72 % 0.94 % Nonperforming loans to total assets 0.39 % 0.27 % 0.33 % 0.45 % 0.72 % Nonaccrual loans to total loans 0.50 % 0.34 % 0.43 % 0.72 % 0.94 % Nonperforming assets to total assets 0.45 % 0.31 % 0.34 % 0.49 % 0.77 % Total loans outstanding $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 $ 1,979,954 Total assets outstanding $ 3,443,668 $ 3,320,122 $ 3,228,280 $ 2,938,244 $ 2,591,850 (1) With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated.
December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Nonaccrual loans: Real estate loans: One- to four-family first mortgage $ 6,531 $ 7,039 $ 1,600 $ 2,300 $ 3,575 Home equity loans and lines 531 279 208 34 38 Commercial real estate 9,011 3,304 5,203 6,945 8,431 29 December 31, (dollars in thousands) 2025 2024 2023 2022 2021 Construction and land 15,367 1,622 1,181 315 258 Multi-family residential 1,281 — — — — Other loans: Commercial and industrial 1,344 1,311 331 378 763 Consumer 46 27 291 541 204 Total nonaccrual loans 34,111 13,582 8,814 10,513 13,269 Accruing loans 90 days or more past due 65 16 — 2 6 Total nonperforming loans 34,176 13,598 8,814 10,515 13,275 Foreclosed assets and ORE 1,929 2,010 1,575 461 1,189 Total nonperforming assets 36,105 15,608 10,389 10,976 14,464 Performing troubled debt restructurings (1) — — — 6,205 4,963 Total nonperforming assets and troubled debt restructurings $ 36,105 $ 15,608 $ 10,389 $ 17,181 $ 19,427 Nonperforming loans to total loans 1.25 % 0.50 % 0.34 % 0.43 % 0.72 % Nonperforming loans to total assets 0.98 % 0.39 % 0.27 % 0.33 % 0.45 % Nonaccrual loans to total loans 1.24% 0.50% 0.34% 0.43% 0.72% Nonperforming assets to total assets 1.03 % 0.45 % 0.31 % 0.34 % 0.49 % Total loans outstanding $ 2,744,023 $ 2,718,185 $ 2,581,638 $ 2,430,750 $ 1,840,093 Total assets outstanding $ 3,492,626 $ 3,443,668 $ 3,320,122 $ 3,228,280 $ 2,938,244 (1) With the adoption of ASU 2022-02, effective January 1, 2023, TDR accounting has been eliminated.
The Asset-Liability Committee (“ALCO”), comprised of the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, Chief 29 Risk Officer and Director of Financial Management, monitors investment activity and ensures that investments are consistent with the Investment Policy. The Board of Directors of the Company reviews investment activity monthly.
The Asset-Liability Committee (“ALCO”), comprised of the Chief Executive Officer, Chief Financial Officer, Chief Operations Officer, Chief Risk Officer, Chief Banking Officer, Chief Administrative Officer, Director of Financial Management and Director of Retail, monitors investment activity and ensures that investments are consistent with the Investment Policy.
December 31, (dollars in thousands) 2024 2023 2022 Fixed rate: Available for sale $ 420,577 $ 451,517 $ 511,960 Held to maturity 1,065 1,065 1,075 Total fixed rate 421,642 452,582 513,035 Adjustable rate: Available for sale 23,227 25,840 29,327 Total adjustable rate 23,227 25,840 29,327 Total investment securities $ 444,869 $ 478,422 $ 542,362 30 The following table sets forth the amount of investment securities which mature during each of the periods indicated and the weighted average yields for each range of maturities as of December 31, 2024.
December 31, (dollars in thousands) 2025 2024 2023 Fixed rate: Available for sale $ 396,026 $ 420,577 $ 451,517 Held to maturity 1,065 1,065 1,065 Total fixed rate 397,091 421,642 452,582 Adjustable rate: Available for sale 18,858 23,227 25,840 Total adjustable rate 18,858 23,227 25,840 Total investment securities $ 415,949 $ 444,869 $ 478,422 The following table sets forth the amount of investment securities which mature during each of the periods indicated and the weighted average yields for each range of maturities as of December 31, 2025.
Certificates of deposit in the amount of $250,000 and over increased $37.7 million, or 19.7%, from $190.7 million at December 31, 2023 to $228.4 million at December 31, 2024. The following table details the remaining maturity of large-denomination certificates of deposit of $250,000 and over as of the dates indicated.
Certificates of deposit in the amount of $250,000 and over increased $28.5 million, or 12.5%, from $228.4 million at December 31, 2024 to $256.9 million at December 31, 2025. The following table details the remaining maturity of large-denomination certificates of deposit of $250,000 and over as of the dates indicated.
The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses. The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines.
The policy statement provides guidance for financial institutions on both the responsibilities of management for the assessment and establishment of allowances and guidance for banking agency examiners to use in determining the adequacy of general valuation guidelines.
No allowance is recorded if the Company has the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities within the Consolidated Statements of Financial Condition. Adjustments to the allowance for unfunded commitments are reported in the Consolidated Statements of Income as a component of Noninterest Expense.
No allowance is recorded if the Company has the unconditional right to cancel the obligation. The allowance is reported as a component of other liabilities within the Consolidated Statements of Financial Condition.
On a longer-term basis, the Company maintains a strategy of investing in various lending and investment security products. The Company uses its sources of funds primarily to meet its ongoing commitments and fund loan commitments.
Excess liquidity is generally invested in short-term investments such as overnight deposits. On a longer-term basis, the Company maintains a strategy of investing in various lending and investment security products. The Company uses its sources of funds primarily to meet its ongoing commitments and fund loan commitments.
Business Combinations Assets and liabilities acquired in business combinations are recorded at their fair value. In accordance with ASC Topic 805, Business Combinations , the Company generally records provisional amounts at the time of acquisition based on the information available to the Company.
In accordance with ASC Topic 805, Business Combinations , the Company generally records provisional amounts at the time of acquisition based on the information available to the Company.
Management believes that the non-GAAP information provides useful data in understanding the Company’s operations and in comparing the Company’s results to peers. This non-GAAP information should be considered in addition to the Company’s financial information prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results.
This non-GAAP information should be considered in addition to the Company’s financial information prepared in accordance with GAAP, and is not a substitute for, or superior to, GAAP results.
(dollars in thousands) 2024 2023 2024 vs 2023 Percent Increase (Decrease) 2022 2023 vs 2022 Percent Increase (Decrease) Noninterest income: Service fees and charges $ 5,118 $ 4,992 2.5 % $ 4,920 1.5 % Bank card fees 6,525 7,051 (7.5) 6,279 12.3 Gain on sale of loans, net 470 816 (42.4) 663 23.1 Income from bank-owned life insurance 1,100 1,045 5.3 915 14.2 Loss on sale of securities, net — (249) (100.0) — — Gain (loss) on sale of assets, net 33 (27) (222.2) 26 (203.8) Other income 1,379 1,008 36.8 1,082 (6.8) Total noninterest income $ 14,625 $ 14,636 (0.1) % $ 13,885 5.4 % 2024 compared to 2023 Noninterest income for 2024 totaled $14.6 million, down $11,000, or 0.1%, compared to 2023.
(dollars in thousands) 2025 2024 2025 vs 2024 Percent Increase (Decrease) 2023 2024 vs 2023 Percent Increase (Decrease) Noninterest income: Service fees and charges $ 5,500 $ 5,118 7.5 % $ 4,992 2.5 % Bank card fees 6,598 6,525 1.1 7,051 (7.5) Gain on sale of loans, net 860 470 83.0 816 (42.4) Income from bank-owned life insurance 1,136 1,100 3.3 1,045 5.3 Loss on sale of securities, net — — — (249) (100.0) Gain (loss) on sale of assets, net 3 33 (90.9) (27) (222.2) Other income 1,364 1,379 (1.1) 1,008 36.8 Total noninterest income $ 15,461 $ 14,625 5.7 % $ 14,636 (0.1) % 2025 compared to 2024 Noninterest income for 2025 totaled $15.5 million, up $836,000, or 5.7%, compared to 2024.
While scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds, deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition. We also maintain excess funds in short-term, interest-bearing assets that provide additional liquidity.
While scheduled payments from the amortization of loans and investment securities and maturing investment securities are relatively predictable sources of funds, deposit flows and loan prepayments can be greatly influenced by general interest rates, economic conditions and competition.
(dollars in thousands) 2024 2023 2024 vs 2023 Percent Increase (Decrease) 2022 2023 vs 2022 Percent Increase (Decrease) Noninterest expense: Compensation and benefits $ 51,330 $ 48,933 4.9 % $ 47,750 2.5 % Occupancy 10,131 9,674 4.7 8,715 11.0 Marketing and advertising 2,000 2,146 (6.8) 2,263 (5.2) Data processing and communication 10,241 9,372 9.3 9,307 0.7 Professional services 1,922 1,690 13.7 1,740 (2.9) Forms, printing and supplies 794 781 1.7 766 2.0 Franchise and shares tax 1,863 1,755 6.2 2,108 (16.7) Regulatory fees 1,954 2,040 (4.2) 2,122 (3.9) Foreclosed assets, net 341 (547) 162.3 523 (204.6) Amortization of acquisition intangible 1,328 1,601 (17.1) 1,602 (0.1) Provision for credit losses on unfunded commitments 106 501 (78.8) 278 80.2 Other expenses 5,279 4,895 7.8 4,735 3.4 Total noninterest expense $ 87,289 $ 82,841 5.4 % $ 81,909 1.1 % 2024 compared to 2023 Noninterest expense for 2024 totaled $87.3 million, up $4.4 million, or 5.4%, from 2023.
(dollars in thousands) 2025 2024 2025 vs 2024 Percent Increase (Decrease) 2023 2024 vs 2023 Percent Increase (Decrease) Noninterest expense: Compensation and benefits $ 53,479 $ 51,330 4.2 % $ 48,933 4.9 % Occupancy 10,024 10,131 (1.1) 9,674 4.7 Marketing and advertising 1,965 2,000 (1.8) 2,146 (6.8) Data processing and communication 10,374 10,241 1.3 9,372 9.3 Professional services 1,608 1,922 (16.3) 1,690 13.7 Forms, printing and supplies 802 794 1.0 781 1.7 Franchise and shares tax 1,868 1,863 0.3 1,755 6.2 Regulatory fees 1,908 1,954 (2.4) 2,040 (4.2) Foreclosed assets, net 1,077 341 215.8 (547) 162.3 37 Amortization of acquisition intangible 1,087 1,328 (18.1) 1,601 (17.1) (Reversal) provision for credit losses on unfunded commitments (1,075) 106 (1,114.2) 501 (78.8) Other expenses 6,446 5,279 22.1 4,895 7.8 Total noninterest expense $ 89,563 $ 87,289 2.6 % $ 82,841 5.4 % 2025 compared to 2024 Noninterest expense for 2025 totaled $89.6 million, up $2.3 million, or 2.6%, from 2024.
The Investment Policy is designed primarily to manage the interest rate sensitivity of our assets and liabilities, to generate a favorable return without incurring undue interest rate or credit risk and to provide and maintain liquidity.
Investment Securities The Company invests in securities pursuant to our Investment Policy, which has been approved by our Board of Directors. The Investment Policy is designed primarily to manage the interest rate sensitivity of our assets and liabilities, to generate a favorable return without incurring undue interest rate or credit risk and to provide and maintain liquidity.
Contract Amount (dollars in thousands) 2024 2023 Standby letters of credit $ 6,502 $ 7,289 Available portion of lines of credit 488,930 368,398 Undisbursed portion of loans in process 76,424 221,997 Commitments to originate loans 161,482 127,076 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
Contract Amount (dollars in thousands) 2025 2024 Standby letters of credit $ 8,724 $ 6,502 Available portion of lines of credit 498,442 488,930 Undisbursed portion of loans in process 69,223 76,424 Commitments to originate loans 165,251 161,482 Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.
For the Years Ended December 31, (dollars in thousands) 2024 2023 2022 Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Noninterest-bearing demand deposits $ 747,640 $ 821,592 $ 894,103 Interest-bearing deposits Interest-bearing demand deposits 625,005 8,008 1.28 % 638,846 5,464 0.86 % 745,463 1,941 0.26 % Savings 219,880 1,209 0.55 265,850 1,079 0.41 313,151 413 0.13 Money market accounts 432,198 11,983 2.77 389,959 6,881 1.76 441,367 1,187 0.27 Certificates of deposit 704,981 31,580 4.48 465,710 14,080 3.02 358,729 1,674 0.47 Total interest-bearing deposits 1,982,064 52,780 2.66 % 1,760,365 27,504 1.56 % 1,858,710 5,215 0.28 % Total deposits $ 2,729,704 $ 2,581,957 $ 2,752,813 The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $813.6 million at December 31, 2024 and $748.6 million at December 31, 2023.
For the Years Ended December 31, (dollars in thousands) 2025 2024 2023 Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Average Balance Interest Expense Average Rate Paid Noninterest-bearing demand deposits $ 773,650 $ 747,640 $ 821,592 Interest-bearing deposits Interest-bearing demand deposits 632,396 8,442 1.33 % 625,005 8,008 1.28 % 638,846 5,464 0.86 % Savings 205,431 1,114 0.54 219,880 1,209 0.55 265,850 1,079 0.41 Money market accounts 478,372 13,019 2.72 432,198 11,983 2.77 389,959 6,881 1.76 Certificates of deposit 793,858 30,802 3.88 704,981 31,580 4.48 465,710 14,080 3.02 Total interest-bearing deposits 2,110,057 53,377 2.53 % 1,982,064 52,780 2.66 % 1,760,365 27,504 1.56 % Total deposits $ 2,883,707 $ 2,729,704 $ 2,581,957 The total amount of our uninsured deposits (deposits in excess of $250,000, as calculated in accordance with FDIC regulations) were $885.4 million at December 31, 2025 and $813.6 million at December 31, 2024.
(dollars in thousands) Available for Sale Held to Maturity Balance, December 31, 2023 $ 433,926 $ 1,065 Purchases 10,507 — Principal maturities, prepayments and calls (43,779) — Amortization of premiums and accretion of discounts (281) — Increase in market value 2,419 Balance, December 31, 2024 $ 402,792 $ 1,065 As of December 31, 2024, the Company had a net unrealized loss on its available for sale investment securities portfolio of $41.0 million, compared to a net unrealized loss of $43.4 million as of December 31, 2023.
(dollars in thousands) Available for Sale Held to Maturity Balance, December 31, 2024 $ 402,792 $ 1,065 Purchases 26,039 — Principal maturities, prepayments and calls (54,775) — Amortization of premiums and accretion of discounts (184) — Increase in market value 17,576 — Balance, December 31, 2025 $ 391,448 $ 1,065 As of December 31, 2025, the Company had a net unrealized loss on its available for sale investment securities portfolio of $23.4 million, compared to a net unrealized loss of $41.0 million as of December 31, 2024.
Average FHLB advances were $57.0 million during 2024, down $186.6 million, or 76.6%, from 2023. Shareholders’ Equity Shareholders’ equity provides a source of permanent funding, allows for future growth and provides the Company with a cushion to withstand unforeseen adverse developments.
Average FHLB advances were $83.7 million during 2025, up $26.7 million, or 46.9%, from 2024. Shareholders’ Equity Shareholders’ equity provides a source of permanent funding, allows for future growth and provides the Company with a cushion to withstand unforeseen adverse developments.
The Company’s net interest spread was 2.84%, 3.20% and 3.78% for the years ended December 31, 2024, 2023, and 2022, respectively. Net interest income totaled $120.3 million in 2024, down $430,000, or 0.4%, compared to $120.7 million in 2023.
The Company’s net interest spread was 3.20%, 2.84% and 3.20% for the years ended December 31, 2025, 2024, and 2023, respectively. Net interest income totaled $133.3 million in 2025, up $13.0 million, or 10.8%, compared to $120.3 million in 2024.
EXECUTIVE OVERVIEW The Company reported net income for 2024 of $36.4 million, or $4.55 diluted EPS compared to $40.2 million, or $4.99 diluted EPS, reported for 2023.
EXECUTIVE OVERVIEW The Company reported net income for 2025 of $46.1 million, or $5.87 diluted EPS compared to $36.4 million, or $4.55 diluted EPS, reported for 2024.
We have 31 historically relied primarily on a high level of customer service and long-standing relationships with customers to attract and retain deposits; however, market interest rates and rates offered by competitors significantly affect our ability to attract and retain deposits.
We have historically relied primarily on a high level of customer service and long-standing relationships with customers to attract and retain deposits; however, market interest rates and rates offered by competitors significantly affect our ability to attract and retain deposits. Total deposits were $3.0 billion as of December 31, 2025, up $192.1 million, or 6.9%, compared to December 31, 2024.
For the year ended December 31, 2024, the Company provisioned $2.4 million to the allowance for loan losses compared to a provision of $2.3 million for the year ended December 31, 2023. Net income in 2023 was $40.2 million, up $6.2 million, or 18.1%, compared to 2022. Diluted EPS for 2023 was $4.99, up $0.83, or 20.0% from 2022.
For the year ended December 31, 2025, the Company provisioned $1.1 million to the allowance for loan losses compared to a provision of $2.4 million for the year ended December 31, 2024. Net income in 2024 was $36.4 million, down $3.8 million, or 9.5%, compared to 2023. Diluted EPS for 2024 was $4.55, down $0.44, or 8.8% from 2023.
For the Years Ended December 31, (dollars in thousands) 2024 2023 2022 Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Interest-earning assets: Loans receivable (1) $ 2,652,669 $ 170,255 6.33 % $ 2,510,301 $ 149,338 5.88 % $ 2,174,967 $ 112,660 5.12 % Investment securities (TE) Taxable 443,523 10,618 2.39 485,201 11,537 2.38 455,757 9,647 2.12 Tax-exempt 16,262 290 2.26 19,322 367 2.41 24,371 481 2.50 Total investment securities 459,785 10,908 2.39 504,523 11,904 2.38 480,128 10,128 2.14 Other interest-earning assets 71,498 3,604 5.04 54,323 2,421 4.46 325,429 3,142 0.97 Total interest-earning assets (TE) 3,183,952 184,767 5.74 3,069,147 163,663 5.28 2,980,524 125,930 4.19 Noninterest-earning assets 202,769 193,673 198,338 Total assets $ 3,386,721 $ 3,262,820 $ 3,178,862 Interest-bearing liabilities: Deposits: Savings, checking and money market $ 1,277,083 $ 21,200 1.66 % $ 1,294,655 $ 13,424 1.04 % $ 1,499,981 $ 3,541 0.24 % Certificates of deposit 704,981 31,580 4.48 465,710 14,080 3.02 358,729 1,674 0.47 Total interest-bearing deposits 1,982,064 52,780 2.66 1,760,365 27,504 1.56 1,858,710 5,215 0.28 Other borrowings 128,699 6,094 4.74 5,567 214 3.84 5,603 213 3.80 Subordinated debt 54,348 3,381 6.22 54,128 3,390 6.26 27,396 1,710 6.24 FHLB advances 56,956 2,250 3.92 243,513 11,863 4.81 32,762 777 2.36 Total interest-bearing liabilities 2,222,067 64,505 2.90 2,063,573 42,971 2.08 1,924,471 7,915 0.41 Noninterest-bearing liabilities 783,458 851,942 918,937 Total liabilities 3,005,525 2,915,515 2,843,408 Shareholders’ equity 381,196 347,305 335,454 Total liabilities and shareholders’ equity $ 3,386,721 $ 3,262,820 $ 3,178,862 Net interest-earning assets $ 961,885 $ 1,005,574 $ 1,056,053 Net interest income; net interest spread (TE) $ 120,262 2.84 % $ 120,692 3.20 % $ 118,015 3.78 % Net interest margin (TE) 3.71 % 3.89 % 3.92 % (1) Nonperforming loans are included in the respective average loan balances, net of deferred fees, discounts and loans in process.
For the Years Ended December 31, (dollars in thousands) 2025 2024 2023 Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Average Balance Interest Average Yield/ Rate Interest-earning assets: Loans receivable (1) $ 2,742,263 $ 179,474 6.47 % $ 2,652,669 $ 170,255 6.33 % $ 2,510,301 $ 149,338 5.88 % Investment securities (TE) Taxable 405,677 10,006 2.47 443,523 10,618 2.39 485,201 11,537 2.38 Tax-exempt 16,073 288 2.27 16,262 290 2.26 19,322 367 2.41 Total investment securities 421,750 10,294 2.46 459,785 10,908 2.39 504,523 11,904 2.38 Other interest-earning assets 97,720 4,004 4.10 71,498 3,604 5.04 54,323 2,421 4.46 Total interest-earning assets (TE) 3,261,733 193,772 5.88 3,183,952 184,767 5.74 3,069,147 163,663 5.28 Noninterest-earning assets 211,709 202,769 193,673 Total assets $ 3,473,442 $ 3,386,721 $ 3,262,820 Interest-bearing liabilities: Deposits: Savings, checking and money market $ 1,316,199 $ 22,575 1.72 % $ 1,277,083 $ 21,200 1.66 % $ 1,294,655 $ 13,424 1.04 % Certificates of deposit 793,858 30,802 3.88 704,981 31,580 4.48 465,710 14,080 3.02 Total interest-bearing deposits 2,110,057 53,377 2.53 1,982,064 52,780 2.66 1,760,365 27,504 1.56 Other borrowings 4,348 168 3.86 128,699 6,094 4.74 5,567 214 3.84 Subordinated debt 54,567 3,379 6.19 54,348 3,381 6.22 54,128 3,390 6.26 FHLB advances 83,681 3,594 4.24 56,956 2,250 3.92 243,513 11,863 4.81 Total interest-bearing liabilities 2,252,653 60,518 2.68 2,222,067 64,505 2.90 2,063,573 42,971 2.08 Noninterest-bearing liabilities 807,132 783,458 851,942 Total liabilities 3,059,785 3,005,525 2,915,515 Shareholders’ equity 413,657 381,196 347,305 Total liabilities and shareholders’ equity $ 3,473,442 $ 3,386,721 $ 3,262,820 Net interest-earning assets $ 1,009,080 $ 961,885 $ 1,005,574 Net interest income; net interest spread (TE) $ 133,254 3.20 % $ 120,262 2.84 % $ 120,692 3.20 % Net interest margin (TE) 4.03 % 3.71 % 3.89 % (1) Nonperforming loans are included in the respective average loan balances, net of deferred fees, discounts and loans in process.
(8) Tangible calculation eliminates goodwill and core deposit intangible. This Selected Financial Data contains financial information prepared other than in accordance with generally accepted accounting principles (“GAAP”). The Company uses these non-GAAP financial measures in its analysis of the Company’s performance.
(8) Tangible calculation eliminates goodwill and core deposit intangible. This contains financial information prepared other than in accordance with GAAP. The Company uses these non-GAAP financial measures in its analysis of the Company’s performance. Management believes that the non-GAAP information provides useful data in understanding the Company’s operations and in comparing the Company’s results to peers.
December 31, 2024 2023 2022 (dollars in thousands) Amortized Cost Market Value Amortized Cost Market Value Amortized Cost Market Value Available for sale: U.S. agency mortgage-backed $ 291,351 $ 261,873 $ 314,569 $ 283,853 $ 355,014 $ 316,832 Collateralized mortgage obligations 73,931 71,389 82,764 79,262 91,217 86,345 Municipal bonds 53,458 45,829 53,891 46,674 67,476 57,625 U.S. government agency 18,079 17,128 19,151 18,049 20,600 19,333 Corporate bonds 6,985 6,573 6,982 6,088 6,980 6,383 Total available for sale 443,804 402,792 477,357 433,926 541,287 486,518 Held to maturity: Municipal bonds 1,065 1,065 1,065 1,066 1,075 1,072 Total held to maturity 1,065 1,065 1,065 1,066 1,075 1,072 Total investment securities $ 444,869 $ 403,857 $ 478,422 $ 434,992 $ 542,362 $ 487,590 The following table sets forth the fixed versus adjustable rate profile of the investment securities portfolio as of the dates indicated.
December 31, 2025 2024 2023 (dollars in thousands) Amortized Cost Market Value Amortized Cost Market Value Amortized Cost Market Value Available for sale: U.S. agency mortgage-backed $ 284,749 $ 267,650 $ 291,351 $ 261,873 $ 314,569 $ 283,853 Collateralized mortgage obligations 61,185 60,327 73,931 71,389 82,764 79,262 Municipal bonds 53,018 48,147 53,458 45,829 53,891 46,674 U.S. government agency 11,441 11,003 18,079 17,128 19,151 18,049 Corporate bonds 4,491 4,321 6,985 6,573 6,982 6,088 Total available for sale 414,884 391,448 443,804 402,792 477,357 433,926 Held to maturity: Municipal bonds 1,065 1,066 1,065 1,065 1,065 1,066 Total held to maturity 1,065 1,066 1,065 1,065 1,065 1,066 Total investment securities $ 415,949 $ 392,514 $ 444,869 $ 403,857 $ 478,422 $ 434,992 The following table sets forth the fixed versus adjustable rate profile of the investment securities portfolio as of the dates indicated.
The ACL, which is comprised of the allowance for loan losses plus the allowance for unfunded lending commitments, totaled $35.6 million, or 1.31% of total loans, at December 31, 2024. • Total deposits increased $110.1 million, or 4.1%, from December 31, 2023 to $2.8 billion at December 31, 2024, primarily due to increases in certificate of deposits and money market accounts. • The Company repurchased 124,634 shares of common stock at an average price of $37.79 per share during 2024. • The net interest margin was 3.71% for the year ended December 31, 2024, down 18 bps compared to 2023, primarily due to an increase in the average cost of interest-bearing liabilities, partially offset with an increase in the average yield earned on interest-earning assets during 2024. • The average rate paid on total interest-bearing deposits during 2024 was 2.66%, up 110 bps compared to 2023. • Noninterest income decreased $11,000, or 0.1%, in 2024 compared to 2023, primarily due to a decrease in bank card fees and gain on sale of loans, which were offset by an increase in other noninterest income. • Noninterest expense increased $4.4 million, or 5.4%, in 2024 compared to 2023 primarily due to an increase in compensation and benefits, foreclosed assets (primarily due to the absence of a $769,000 foreclosed asset recovery of a previous loss on a OREO sale that occurred during the first quarter of 2023), data processing and communications, and occupancy expenses, which were partially offset by a decrease in the provision for credit losses on unfunded commitments.
The allowance for credit losses ("ACL"), which is comprised of the allowance for loan losses plus the allowance for unfunded lending commitments, totaled $34.8 million, or 1.27% of total loans, at December 31, 2025. • Total deposits increased $192.1 million, or 6.9%, from December 31, 2024 to $3.0 billion at December 31, 2025, primarily due to increases in certificate of deposits, money market accounts, and demand deposit accounts. • The Company repurchased 321,590 shares of common stock at an average price of $44.30 per share during 2025. • The net interest margin was 4.03% for the year ended December 31, 2025, up 32 bps compared to 2024, primarily due to a decline in the average cost of interest-bearing liabilities and an increase in the average yield earned on interest-earning assets during 2025. • The average rate paid on total interest-bearing deposits during 2025 was 2.53%, down 13 bps compared to 2024. • Noninterest income increased $836,000, or 5.7%, in 2025 compared to 2024, primarily due to an increase in gain on sale of loans, service fees and charges, and bank card fees, which were partially offset by a decrease in gain on sale of assets. • Noninterest expense increased $2.3 million, or 2.6%, in 2025 compared to 2024, primarily due to an increase in compensation and benefits and other expenses, which were partially offset by a reversal in the provision for credit losses on unfunded commitments. 19 SELECTED FINANCIAL DATA Set forth below is selected summary historical financial and other data of the Company.
December 31, 2024 (dollars in thousands) Recorded Investment Allowance for Loan Losses Allowance to Total Loans Loans Individually Evaluated One- to four-family first mortgage $ — $ — — % Home equity loans and lines — — — Commercial real estate 4,718 200 4.24 Construction and land — — — Multi-family residential — — — Commercial and industrial 254 248 97.64 Consumer — — — Total $ 4,972 $ 448 9.01 % December 31, 2023 (dollars in thousands) Recorded Investment Allowance for Loan Losses Allowance to Total Loans Loans Individually Evaluated One- to four-family first mortgage $ — $ — — % Home equity loans and lines — — — Commercial real estate 3,957 201 5.08 Construction and land 147 123 83.67 Multi-family residential — — — Commercial and industrial 112 95 84.82 Consumer — — — Total $ 4,216 $ 419 9.94 % Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets.
December 31, 2025 (dollars in thousands) Recorded Investment Allowance for Loan Losses Allowance to Total Loans Loans Individually Evaluated One- to four-family first mortgage $ 2,304 $ 411 17.84 % Home equity loans and lines — — — Commercial real estate 2,162 362 16.74 Construction and land 520 — — Multi-family residential 603 136 22.55 Commercial and industrial 617 356 57.70 Consumer — — — Total $ 6,206 $ 1,265 20.38 % 28 December 31, 2024 (dollars in thousands) Recorded Investment Allowance for Loan Losses Allowance to Total Loans Loans Individually Evaluated One- to four-family first mortgage $ — $ — — % Home equity loans and lines — — — Commercial real estate 4,718 200 4.24 Construction and land — — — Multi-family residential — — — Commercial and industrial 254 248 97.64 Consumer — — — Total $ 4,972 $ 448 9.01 % Federal regulations and our policies require that we utilize an internal asset classification system as a means of reporting problem and potential problem assets.
For the year ended December 31, 2023, the Company provisioned $2.3 million to the allowance for loan losses compared to a provision of $7.5 million for the year ended December 31, 2022. The provision during 2022 was significantly impacted by the acquisition of Friendswood.
For the year ended December 31, 2024, the Company provisioned $2.4 million to the allowance for loan losses compared to a provision of $2.3 million for the year ended December 31, 2023.
The table distinguishes between (i) changes attributable to volume (changes in average volume between periods times prior year rate), (ii) changes attributable to rate (changes in average rate between periods times prior year volume) and (iii) total increase (decrease). 2024 Compared to 2023 Change Attributable To 2023 Compared to 2022 Change Attributable To (dollars in thousands) Rate Volume Total Increase (Decrease) Rate Volume Total Increase (Decrease) Interest income: Loans receivable $ 10,851 $ 10,066 $ 20,917 $ 18,114 $ 18,564 $ 36,678 Investment securities (359) (637) (996) 972 804 1,776 Other interest-earning assets 535 648 1,183 1,401 (2,122) (721) Total interest income 11,027 10,077 21,104 20,487 17,246 37,733 Interest expense: Savings, checking and money market accounts 4,719 3,057 7,776 6,501 3,382 9,883 Certificates of deposit 8,693 8,807 17,500 7,296 5,110 12,406 Other borrowings 2,350 3,530 5,880 1 — 1 Subordinated debt (9) — (9) 630 1,050 1,680 FHLB advances (3,570) (6,043) (9,613) 4,461 6,625 11,086 Total interest expense 12,183 9,351 21,534 18,889 16,167 35,056 Increase (decrease) in net interest income $ (1,156) $ 726 $ (430) $ 1,598 $ 1,079 $ 2,677 Interest income includes interest income earned on earning assets as well as applicable loan fees earned.
The table distinguishes between (i) changes attributable to volume (changes in average volume between periods times prior year rate), (ii) changes attributable to rate (changes in average rate between periods times prior year volume) and (iii) total increase (decrease). 2025 Compared to 2024 Change Attributable To 2024 Compared to 2023 Change Attributable To (dollars in thousands) Rate Volume Total Increase (Decrease) Rate Volume Total Increase (Decrease) Interest income: Loans receivable $ 4,378 $ 4,841 $ 9,219 $ 10,851 $ 10,066 $ 20,917 Investment securities (153) (461) (614) (359) (637) (996) Other interest-earning assets (51) 451 400 535 648 1,183 Total interest income 4,174 4,831 9,005 11,027 10,077 21,104 Interest expense: Savings, checking and money market accounts 537 838 1,375 4,719 3,057 7,776 Certificates of deposit (1,423) 645 (778) 8,693 8,807 17,500 Other borrowings (2,363) (3,563) (5,926) 2,350 3,530 5,880 Subordinated debt (5) 3 (2) (9) — (9) FHLB advances 429 915 1,344 (3,570) (6,043) (9,613) Total interest expense (2,825) (1,162) (3,987) 12,183 9,351 21,534 Increase (decrease) in net interest income $ 6,999 $ 5,993 $ 12,992 $ (1,156) $ 726 $ (430) Interest income includes interest income earned on earning assets as well as applicable loan fees earned.
The Company had $137.2 million short-term FHLB advances as of December 31, 2024, down $12.8 million, or 8.5%, compared to $150.0 million as of December 31, 2023. Long-term FHLB advances totaled $38.3 million as of December 31, 2024, down $4.4 million, or 10.3%, compared to $42.7 million as of December 31, 2023.
The Company had no short-term FHLB advances as of December 31, 2025, down $137.2 million, or 100.0%, compared to $137.2 million as of December 31, 2024. Long-term FHLB advances totaled $3.0 million as of December 31, 2025, down $35.3 million, or 92.1%, compared to $38.3 million as of December 31, 2024.
The Company’s net interest margin, which is net interest income as a percentage of average interest-earning assets, was 3.71%, 3.89%, and 3.92% during the years ended December 31, 2024, 2023, and 2022, respectively.
The average cost of total interest-bearing deposits in 2024 totaled 2.66%, up 110 basis points from 2023. 34 The Company’s net interest margin, which is net interest income as a percentage of average interest-earning assets, was 4.03%, 3.71%, and 3.89% during the years ended December 31, 2025, 2024, and 2023, respectively.
Other income for 2024 increased $371,000, or 36.8%, compared to 2023 primarily due to derivative fee income and an increase in Small Business Investment Company ("SBIC") income. 2023 compared to 2022 Noninterest income for 2023 totaled $14.6 million, up $751,000, or 5.4%, compared to 2022.
Other income for 2024 increased $371,000, or 36.8%, compared to 2023 primarily due to derivative fee income and an increase in Small Business Investment Company ("SBIC") income. Noninterest Expense The following table illustrates the primary components of noninterest expense for the years indicated.
The decrease was primarily due to the cost and increase in average interest-bearing liabilities outpacing the yield and increase in average interest-earning assets. Total interest expense increased $21.5 million, or 50.1%, in 2024 compared to 2023 primarily 33 related to higher deposit costs during 2024 compared to 2023.
Total interest expense increased $21.5 million, or 50.1%, in 2024 compared to 2023 primarily related to higher deposit costs during 2024 compared to 2023.
SELECTED FINANCIAL DATA Set forth below is selected summary historical financial and other data of the Company. When you read this summary historical financial data, it is important that you also read the historical financial statements and related notes contained in Item 8 of this Form 10-K.
When you read this summary historical financial data, it is important that you also read the historical financial statements and related notes contained in Item 8 of this Form 10-K. Taxable equivalent (“TE”) ratios have been calculated using a marginal tax rate of 21%.
Our market risk arises primarily from the interest rate risk, which is inherent in our lending and deposit taking activities. To that end, management actively monitors and manages interest rate risk exposure. In addition to market risk, our primary risk is credit risk on our loan portfolio. We attempt to manage credit risk through our loan underwriting and oversight policies.
Market risk is the risk of loss from adverse changes in market prices and rates. Our market risk arises primarily from the interest rate risk, which is inherent in our lending and deposit taking activities. To that end, management actively monitors and manages interest rate risk exposure.
Under terms of the collateral agreement with the FHLB, we may pledge residential mortgage loans and mortgage-backed securities as well as our stock in the FHLB as collateral for such advances. For the year ended December 31, 2024, the average balance of our outstanding FHLB advances was $57.0 million.
Our borrowings consist of advances from the FHLB, of which we are a member. Under terms of the collateral agreement with the FHLB, we may pledge residential mortgage loans and mortgage-backed securities as well as our stock in the FHLB as collateral for such advances.
RESULTS OF OPERATIONS Net income in 2024 was $36.4 million, down $3.8 million, or 9.5%, compared to 2023. Diluted earnings per share ("EPS") for 2024 was $4.55, down $0.44, or 8.8%, from 2023.
RESULTS OF OPERATIONS Net income in 2025 was $46.1 million, up $9.6 million, or 26.5%, compared to 2024. Diluted earnings per share ("EPS") for 2025 was $5.87, up $1.32, or 29.0%, from 2024.
These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed. 39 The following table summarizes our outstanding commitments to originate loans and to advance additional amounts pursuant to outstanding letters of credit, lines of credit and the undisbursed portion of construction loans as of December 31, 2024.
These lines of credit usually do not contain a specified maturity date and may not be drawn upon to the total extent to which the Company is committed.
At December 31, 2024, we had $175.5 million in outstanding FHLB advances and $1.1 billion in additional FHLB advances available to us. Liquidity management is both a daily and long-term function of business management. Excess liquidity is generally invested in short-term investments such as overnight deposits.
For the year ended December 31, 2025, the average balance of our outstanding FHLB advances was $83.7 million. At December 31, 2025, we had $3.0 million in outstanding FHLB advances and $1.3 billion in additional FHLB advances available to us. Liquidity management is both a daily and long-term function of business management.
We had no assets classified as doubtful or loss at either date. For additional information, see Note 5 to the Consolidated Financial Statements. A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances.
A bank’s determination as to the classification of its assets and the amount of its valuation allowances is subject to review by Federal bank regulators which can order the establishment of additional general or specific loss allowances. The Federal banking agencies have adopted an interagency policy statement on the allowance for loan and lease losses.
We use our liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses. At December 31, 2024, certificates of deposit maturing within the next 12 months totaled $693.3 million.
We also maintain excess funds in short-term, interest-bearing assets that provide additional liquidity. 38 We use our liquidity to fund existing and future loan commitments, to fund maturing certificates of deposit and demand deposit withdrawals, to invest in other interest-earning assets and to meet operating expenses.
Based upon historical experience, we anticipate that a significant portion of the maturing certificates of deposit will be redeposited with us. In addition to cash flows from loan and securities payments and prepayments as well as from sales of available for sale securities, we have significant borrowing capacity available to fund liquidity needs.
In addition to cash flows from loan and securities payments and prepayments as well as from sales of available for sale securities, we have significant borrowing capacity available to fund liquidity needs. In recent years, we have utilized borrowings as a cost efficient addition to deposits as a source of funds.
Management recalculates the ACL at least quarterly to reassess the estimate of credit losses for the total portfolio at the relevant reporting date. For more information on the adoption of ASC 326 and the Company's relevant accounting policies, refer to Note 2 of the Consolidated Financial Statements.
For more information on the adoption of ASC 326 and the Company's relevant accounting policies, refer to Note 2 of the Consolidated Financial Statements in Item 8. The following table presents the activity in the allowance for credit losses for the years indicated.
At December 31, 2024 and 2023, the Bank pledged securities with a collateral value of $0 and $103.4 million, respectively. The Bank participated in the BTFP during 2024 and paid off the loan before December 31, 2024. The average balance of other borrowings, which included the BTFP loan was $128.7 million during 2024, up $123.1 million from 2023.
The loans are secured by pledging qualifying securities and are valued at par for collateral purposes. The Bank participated in the BTFP during 2024 and paid off the loan before December 31, 2024. The average balance of other borrowings, which included the BTFP loan in 2024 was $4.3 million during 2025, down $124.4 million from 2024.
The following table presents the activity in the allowance for credit losses for the years indicated.
The following table presents the allocation of the allowance for loan losses as of December 31 for the years indicated.
December 31, Increase/(Decrease) (dollars in thousands) 2024 2023 Amount Percent Demand deposit $ 733,073 $ 744,424 $ (11,351) (1.5) % Savings 210,977 231,624 (20,647) (8.9) Money market 457,483 408,024 49,459 12.1 NOW 645,246 641,818 3,428 0.5 Certificates of deposit 733,917 644,734 89,183 13.8 Total deposits $ 2,780,696 $ 2,670,624 $ 110,072 4.1 % The following table shows the daily average balances of deposits by type and weighted-average rate paid for the periods indicated.
The following table sets forth the composition of the Company’s deposits as of the dates indicated. 32 December 31, Increase/(Decrease) (dollars in thousands) 2025 2024 Amount Percent Demand deposit $ 792,951 $ 733,073 $ 59,878 8.2 % Savings 201,265 210,977 (9,712) (4.6) Money market 518,740 457,483 61,257 13.4 NOW 654,227 645,246 8,981 1.4 Certificates of deposit 805,623 733,917 71,706 9.8 Total deposits $ 2,972,806 $ 2,780,696 $ 192,110 6.9 % The following table shows the daily average balances of deposits by type and weighted-average rate paid for the periods indicated.
The investment securities portfolio decreased by an aggregate of $31.1 million, or 7.2%, during 2024. Securities available for sale made up 99.7% of the investment securities portfolio as of December 31, 2024. The following table sets forth the amortized cost and market value of our investment securities portfolio as of the dates indicated.
The following table sets forth the amortized cost and market value of our investment securities portfolio as of the dates indicated.
In 2023, the Company recorded a $547,000 reversal to expenses related to foreclosed assets, primarily due to a $769,000 recovery of a previous loss on a foreclosed asset, compared to a $523,000 expense in 2022. 37 Income Taxes For the years ended December 31, 2024, 2023 and 2022, the Company incurred income tax expense of $8.8 million, $9.9 million and $8.4 million, respectively.
Provision for credit losses on unfunded commitments decreased $395,000, or 78.8%, compared to 2023, primarily due to a decrease in funding commitments. Income Taxes For the years ended December 31, 2025, 2024 and 2023, the Company incurred income tax expense of $12.0 million, $8.8 million and $9.9 million, respectively.
Other Borrowings On March 12, 2023, the Federal Reserve Board created the Bank Term Funding Program ("BTFP"), which offers loans to banks with a term up to one year with no prepayment penalty. The loans are secured by pledging qualifying securities and are valued at par for collateral purposes.
The subordinated debt was recorded net of issuance costs, which is being amortized using the straight-line method over five years. 33 Other Borrowings On March 12, 2023, the Federal Reserve Board created the Bank Term Funding Program ("BTFP"), which offers loans to banks with a term up to one year with no prepayment penalty.

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Item 7A. Quantitative and Qualitative Disclosures About Market Risk

Market Risk — interest-rate, FX, commodity exposure

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Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk . The information contained in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asset/Liability Management and Market Risk” in Item 7 hereof is incorporated herein by reference. 40
Biggest changeItem 7A. Quantitative and Qualitative Disclosures about Market Risk . The information contained in the section captioned “Management’s Discussion and Analysis of Financial Condition and Results of Operations – Asset/Liability Management and Market Risk” in Item 7 hereof is incorporated herein by reference. 41

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