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HOME BANCORP, INC. Income Taxes Disclosure
Income Taxes
The components of the income tax expense for the Company, all of which are in the United States, for the year December 31, 2025:
| (dollars in thousands) | 2025 | |||||||
Current: | ||||||||
Federal | $ | 11,563 | ||||||
State | 270 | |||||||
Total | 11,833 | |||||||
Deferred: | ||||||||
Federal | $ | 123 | ||||||
State | — | |||||||
Total | 123 | |||||||
Total income tax expense | $ | 11,956 | ||||||
The Company files federal income tax returns on a calendar year basis. Income tax expense for the years indicated is summarized as follows:
| (dollars in thousands) | 2024 | 2023 | ||||||||||||
| Current | $ | 9,583 | $ | 10,722 | ||||||||||
| Deferred | (44) | (33) | ||||||||||||
Historic Tax Credits ("HTC") | (303) | (303) | ||||||||||||
New Markets Tax Credits ("NMTC") | (480) | (480) | ||||||||||||
| Total income tax expense | $ | 8,756 | $ | 9,906 | ||||||||||
The following table presents income taxes paid, net of refunds for the year December 31, 2025:
| (dollars in thousands) | 2025 | |||||||
Federal | $ | 13,100 | ||||||
State | 270 | |||||||
Total(1) | $ | 13,370 | ||||||
(1) No individual jurisdiction other than federal represented 5% or more of the total income taxes paid for the year December 31, 2025.
The components of the Company’s net deferred tax asset, which is included in accrued interest receivable and other assets in the accompanying Statement of Financial Condition at December 31 of the years indicated are as follows:
| (dollars in thousands) | 2025 | 2024 | ||||||||||||
| Deferred tax assets: | ||||||||||||||
| Provision for loan losses | $ | 7,301 | $ | 7,479 | ||||||||||
| Discount on purchased loans | 222 | 474 | ||||||||||||
| Salary continuation plan | 635 | 619 | ||||||||||||
| Mortgage servicing rights | — | 13 | ||||||||||||
| Deferred compensation | 6 | 6 | ||||||||||||
| Stock-based compensation | 287 | 280 | ||||||||||||
| Unrealized loss on securities available for sale | 4,922 | 8,613 | ||||||||||||
| Net operating loss acquired | — | 61 | ||||||||||||
HTC | 124 | 83 | ||||||||||||
| Other | 218 | 173 | ||||||||||||
| Deferred tax assets | $ | 13,715 | $ | 17,801 | ||||||||||
| Deferred tax liabilities: | ||||||||||||||
| FHLB stock dividends | $ | (88) | $ | (161) | ||||||||||
| Accumulated depreciation | (3,039) | (3,110) | ||||||||||||
| Intangible assets | (433) | (619) | ||||||||||||
| Derivatives | (190) | (643) | ||||||||||||
| NMTC | — | (188) | ||||||||||||
| Other | (45) | (45) | ||||||||||||
| Deferred tax liabilities | (3,795) | (4,766) | ||||||||||||
| Net deferred tax asset | $ | 9,920 | $ | 13,035 | ||||||||||
No valuation allowance was necessary on deferred tax assets as of December 31, 2025 and 2024.
The following is a reconciliation of the Company's effective tax rate to the U.S. federal statutory income tax rate for the year ended December 31, 2025:
Year Ended December 31, | ||||||||||||||
| (dollars in thousands) | 2025 | |||||||||||||
| Amount | Rate | |||||||||||||
| $ | 12,184 | 21.0 | % | |||||||||||
State taxes, net of federal income tax effect(1) | 214 | 0.4 | % | |||||||||||
| Tax credits | (321) | (0.6) | % | |||||||||||
| Bank-owned life insurance income | (238) | (0.4) | % | |||||||||||
ESOP related expenses | 222 | 0.4 | % | |||||||||||
Stock compensation related benefits | (227) | (0.4) | % | |||||||||||
| Other items, net | 122 | 0.2 | % | |||||||||||
| Total income tax expense | $ | 11,956 | 20.6 | % | ||||||||||
(1)For the year presented, Texas and Mississippi make up the taxes in this category.
For the years ended December 31, 2024 and 2023, the Company’s provision for federal income taxes differed from the amount computed by applying the federal income tax statutory rate of 21% on income from operations as indicated in the following analysis:
| (dollars in thousands) | 2024 | 2023 | ||||||||||||
| $ | 9,548 | $ | 10,658 | |||||||||||
| State tax based on statutory rate | 205 | 175 | ||||||||||||
| Increase (decrease) resulting from: | ||||||||||||||
HTC | (303) | (303) | ||||||||||||
| NMTC | (480) | (480) | ||||||||||||
| Effect of tax-exempt income | (105) | (155) | ||||||||||||
| Changes in the cash surrender value of bank owned life insurance | (231) | (219) | ||||||||||||
| Nondeductible share based compensation expense | 151 | 161 | ||||||||||||
| Exercise of stock options | (104) | (50) | ||||||||||||
| Other | 75 | 119 | ||||||||||||
| Income tax expense | $ | 8,756 | $ | 9,906 | ||||||||||
| Effective tax rate | 19.4 | % | 19.8 | % | ||||||||||
Retained earnings as of December 31, 2025 and 2024, included $5,837,000 for which no deferred federal income tax liability has been recognized. This amount represents an allocation of income to bad debt deductions for tax purposes only. Reductions of amounts so allocated for purposes other than bad debt losses would create income for tax purposes only, which would be subject to the then-current federal statutory income tax rate. The unrecorded deferred income tax liability on the above amount was $1,985,000 as of December 31, 2025 and 2024. Current accounting standards do not require the accrual of this deferred tax amount to be recorded unless it is probable that the reserve (for tax purposes) will be significantly depleted by loan losses deductible for tax purposes in the future. Based on current estimates of losses within the Company’s loan portfolio, accrual of the deferred tax liability associated with this reserve was not required as of December 31, 2025 and 2024.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 6, 2026 | Showing above |
| 2024 | Mar 12, 2025 | |
| 2023 | Mar 8, 2024 | |
| 2022 | Mar 9, 2023 | |
| 2021 | Mar 10, 2022 | |
| 2020 | Mar 9, 2021 | |
| 2019 | Mar 13, 2020 | |
| 2018 | Mar 13, 2019 | |
| 2017 | Mar 14, 2018 | |
| 2016 | Mar 14, 2017 | |
| 2015 | Mar 14, 2016 | |
About Income Taxes Disclosures
The income tax disclosure reveals how much a company actually pays in taxes versus what the statutory rate would predict. Analysts focus on the effective tax rate (ETR) reconciliation, which breaks down every item driving the gap between the 21% federal rate and the company's reported ETR — including R&D credits, foreign rate differentials, and state taxes. Deferred tax assets (DTAs) and their valuation allowances signal management's confidence in future profitability: a rising allowance suggests the company doubts it can use accumulated tax benefits. Uncertain tax benefit (UTB) reserves quantify exposure to IRS challenges on aggressive positions.
Key signals to watch: sudden ETR drops without clear operational reasons, large increases in valuation allowances, growing UTB balances, and significant unremitted foreign earnings. Post-TCJA, pay attention to GILTI and BEAT provisions that affect multinational tax structures. Compare the cash taxes paid (from the cash flow statement) against the income tax provision to gauge earnings quality.