Home Bancorp (HBCP) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #2 (Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.The Zacks rating relies solely on a company's changing earnings picture. It tracks EPS estimates for the current and following years from the sell-side analysts covering the stock through a consensus measure -- the Zacks Consensus Estimate.Individual investors ...

Financial Data and Key Metrics Changes - The company reported a first quarter net income of $11 million, or $1.37 per share, representing a 13% increase from the fourth quarter and a 20% increase year-over-year [5] - Net interest margin (NIM) expanded for the fourth consecutive quarter to 0.91%, with return on assets (ROA) increasing by 17 basis points to 1.29% [5][14] - Loans grew by $29.1 million in the first quarter, approximately 4% annualized, with a guidance of 4% to 6% loan growth for 2025 [6][17] - Deposits increased at a 7% annualized rate, with non-interest bearing deposits making up 27% of total deposits [7][21] Business Line Data and Key Metrics Changes - Non-interest income for the first quarter was $4 million, an increase of $400,000 compared to the prior quarter, driven by a 100% increase in SBA loan sales [24] - Non-interest expense decreased by $776,000 to $21.6 million, primarily due to a decline in compensation and benefits [25] Market Data and Key Metrics Changes - The company has seen a stable loan yield of 6.43%, with a slight increase in earning asset yields expected due to new loan originations [40][23] - The cost of interest-bearing deposits declined by 15 basis points in Q1, with a significant reduction in the cost of CDs [20] Company Strategy and Development Direction - The company continues to optimize its Houston market, with plans to upgrade and expand its physical footprint [8] - A new 400,000 share repurchase plan was approved, reflecting confidence in the company's intrinsic value [27] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to outperform despite recent economic volatility, maintaining a strong credit culture and customer service focus [12] - The outlook for NIM and earnings is positive, with expectations of continued expansion even without rate cuts [13] Other Important Information - The company has maintained a core efficiency ratio between 60% and 65%, which declined to 60% in Q1 [15] - The allowance for loan loss ratio remained stable at 1.21% [19] Q&A Session Summary Question: What are the expectations for margin improvement after the first quarter? - Management indicated that they expect a slowdown in profit costs in Q2 but anticipate stable to slightly increasing NIM due to loan repricing and new originations [36][38] Question: Can you discuss the loan relationships that moved to non-accrual? - Management highlighted two problematic loans: one related to a condominium development in Mississippi and another concerning a hotel undergoing renovations in Houston [44][46] Question: How has the office portfolio performed regarding maturities? - The office portfolio has performed well, with most matured loans renewing without significant movement [52] Question: Will the loan-to-deposit ratio change over time? - Management expects the loan-to-deposit ratio to remain tight until there is a noticeable decrease in loan demand [59] Question: How aggressive will the company be with share repurchases? - Management indicated that while they may not be as aggressive as in Q1, they will continue to repurchase shares when opportunities arise [70]

For a more detailed description of the factors that may affect Home Bancorp's operating results or the outcomes described in these forward-looking statements, we refer you to our filings with the Securities and Exchange Commission, including our annual report on Form 10-K for the year ended December 31, 2024. Home Bancorp assumes no obligation to update the forward-looking statements made during this presentation. For more information, please visit our website www.home24bank.com. Non-GAAP Information Q1 202 ...

Core Insights - Home Bancorp (HBCP) reported a revenue of $35.76 million for the quarter ended March 2025, reflecting a year-over-year increase of 10.2% and a surprise of +3.62% over the Zacks Consensus Estimate of $34.51 million [1] - The earnings per share (EPS) for the quarter was $1.37, compared to $1.14 in the same quarter last year, resulting in an EPS surprise of +20.18% against the consensus estimate of $1.14 [1] Financial Performance Metrics - Total nonperforming loans amounted to $19.05 million, exceeding the average estimate of $13.43 million from two analysts [4] - Total nonperforming assets were reported at $21.47 million, higher than the average estimate of $15.34 million from two analysts [4] - The net interest margin was 3.9%, slightly above the estimated 3.8% by two analysts [4] - Total average interest-earning assets were $3.24 billion, which is below the average estimate of $3.27 billion from two analysts [4] - The efficiency ratio stood at 60.4%, better than the average estimate of 64.4% from two analysts [4] - Total noninterest income was $4.01 million, surpassing the average estimate of $3.65 million from two analysts [4] - Net interest income reached $31.75 million, exceeding the average estimate of $30.86 million from two analysts [4] Stock Performance - Home Bancorp's shares have returned -1.9% over the past month, compared to a -5.6% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Home Bancorp (HBCP) reported quarterly earnings of $1.37 per share, exceeding the Zacks Consensus Estimate of $1.14 per share, and showing an increase from $1.14 per share a year ago, resulting in an earnings surprise of 20.18% [1] - The company achieved revenues of $35.76 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 3.62% and increasing from $32.45 million year-over-year [2] - Home Bancorp has consistently outperformed consensus EPS and revenue estimates over the last four quarters [2] Earnings Outlook - The future performance of Home Bancorp's stock will largely depend on management's commentary during the earnings call and the trends in earnings estimate revisions [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.17 on revenues of $34.95 million, and for the current fiscal year, it is $4.77 on revenues of $142.99 million [7] Industry Context - The Banks - Southeast industry, to which Home Bancorp belongs, is currently ranked in the top 36% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Performance - The Company reported net income of $11.0 million, or $1.37 per diluted share, for Q1 2025, an increase of $1.3 million from $9.7 million in Q4 2024[1] - For Q1 2025, reported net income was $10.964 million, an increase of 13.4% from $9.673 million in Q4 2024[34] - Net income increased by 13% to $10,964,000 compared to $9,673,000 in the previous quarter and up 19% from $9,199,000 year-over-year[42] - Earnings per share (EPS) - basic rose to $1.38, reflecting a 13% increase from $1.22 in the previous quarter and a 20% increase from $1.15 year-over-year[42] Loan and Deposit Growth - Total loans reached $2.7 billion at March 31, 2025, up $29.1 million, or 1.1%, from December 31, 2024, with an annualized growth rate of 4%[2] - Total deposits increased to $2.8 billion, up $46.5 million, or 1.7%, from December 31, 2024, reflecting a 7% annualized growth rate[2] - Total deposits decreased by 1% to $2,772,295,000 from $2,789,712,000 in the previous quarter, but increased by 3% from $2,680,909,000 year-over-year[42] Asset Management - Total assets increased to $3.485 billion, a 1% rise from $3.444 billion at the end of Q4 2024[38] - Total assets as of March 31, 2025, were $3,449,472,000, a slight increase from $3,439,925,000 in the previous quarter and up 3% from $3,333,883,000 year-over-year[42] Nonperforming Assets and Loan Losses - Nonperforming assets totaled $21.5 million, or 0.62% of total assets, at March 31, 2025, an increase of $5.9 million, or 38%, from $15.6 million at December 31, 2024[5] - The Company recorded a provision of $394,000 for loan losses in Q1 2025, compared to $873,000 in Q4 2024, with the allowance for loan losses totaling $33.3 million[6] - Provision for loan losses decreased significantly by 55% to $394,000 from $873,000 in the previous quarter, and increased from $141,000 year-over-year[42] - Nonperforming loans totaled $19,047,000, with a nonperforming loans to total loans ratio of 0.69%[45] - The total allowance for loan losses increased to $33,278 million, up from $32,916 million year-over-year, reflecting a rise of 1.1%[48] - The allowance for loan losses to nonperforming assets is reported at 154.99%, demonstrating a strong coverage ratio[48] - The allowance for loan losses to nonperforming loans is at 174.72%, indicating robust risk management practices[48] Income and Expense Management - Noninterest income rose to $4.0 million, up $380,000 or 10% from Q4 2024, primarily due to gains on loan sales[23] - Noninterest expense decreased to $21.6 million, down $776,000 or 3% from Q4 2024, mainly due to lower compensation and benefits[24] - Total interest income for the quarter ended March 31, 2025, was $47,201,000, a decrease of 1% from $47,804,000 in the previous quarter, but an increase of 7% from $44,126,000 year-over-year[42] Capital and Shareholder Returns - Shareholders' equity reached $402.8 million, up $6.7 million or 2% compared to $396.1 million at the end of Q4 2024[25] - The company declared a quarterly cash dividend of $0.27 per share, payable on May 16, 2025[28] - The company repurchased 173,497 shares at an average price of $44.72 during Q1 2025[30] - The Tier 1 leverage capital ratio was 11.48% as of March 31, 2025, compared to 11.38% at the end of Q4 2024[25] - The book value per share increased to $50.82, up from $48.95 at the end of Q4 2024[34] Liquidity and Funding - Total primary and secondary sources of available liquidity amounted to $1.374 billion as of March 31, 2025[27] - The average rate on interest-bearing deposits decreased by 15 basis points from 2.66% in Q4 2024 to 2.51% in Q1 2025[13] - The Company experienced a significant increase in average FHLB advances, which rose to $180.7 million, an increase of $127.7 million, or 241%, from Q4 2024[20] Efficiency and Performance Ratios - The efficiency ratio improved to 60.35%, down from 63.48% in the previous quarter and 64.31% year-over-year[42] - Return on average assets increased to 1.29%, up 15% from 1.12% in the previous quarter and 16% from 1.11% year-over-year[42]

Core Insights - Home Bancorp (HBCP) is expected to report quarterly earnings of $1.14 per share, indicating no change from the previous year, with revenues forecasted at $34.21 million, reflecting a 5.4% year-over-year increase [1] - The consensus EPS estimate has remained unchanged over the past 30 days, indicating analysts' reassessment of projections [1][2] Financial Metrics - Analysts estimate 'Total nonperforming loans' at $13.43 million, down from $20.35 million year-over-year [4] - 'Total nonperforming assets' are projected to be $15.34 million, compared to $21.95 million in the previous year [4] - The 'Net Interest Margin' is expected to reach 3.8%, an increase from 3.6% year-over-year [4] - 'Total Average Interest-Earning Assets' is forecasted at $3.27 billion, up from $3.13 billion in the same quarter last year [5] - The 'Efficiency Ratio' is likely to be 64.4%, slightly higher than the previous year's 64.3% [5] - 'Total Noninterest Income' is estimated at $3.65 million, compared to $3.55 million year-over-year [6] - 'Net Interest Income' is projected to be $30.86 million, up from $28.90 million in the same quarter last year [6] Market Performance - Over the past month, Home Bancorp shares have declined by 5.5%, while the Zacks S&P 500 composite has decreased by 3.9% [7] - HBCP holds a Zacks Rank 3 (Hold), suggesting its performance will likely align with the overall market in the near term [7]

Banking Operations - The Company operates 18 banking offices in Acadiana, four in Baton Rouge, six in Greater New Orleans, six in the Northshore region, three in Natchez, and six in Houston, Texas[31]. - Since its IPO in October 2008, the Company has acquired six financial institutions, with the latest acquisition of Friendswood Capital Corporation completed on March 26, 2022[31]. Competition - The Company faces significant competition from larger banks, credit unions, mortgage-banking companies, and financial technology companies in originating loans and attracting deposits[31]. Capital Requirements - As of December 31, 2024, the Bank exceeded all regulatory capital requirements, with Tier 1 capital ratio at 11.38%, Tier 1 common equity ratio at 13.28%, and total risk-based capital ratio at 14.51%[52]. - The common equity Tier 1 capital requirement is at least 4.5% of risk-weighted assets, while the leverage capital requirement is at least 4.0% of adjusted total assets[49]. - The Company must maintain a capital conservation buffer greater than 2.5% of risk-weighted assets to make capital distributions and pay discretionary bonuses without restriction[49]. - The Bank must submit a capital restoration plan within 45 days if deemed undercapitalized, and as of December 31, 2024, it was classified as a well-capitalized institution[57]. - The Bank's ability to pay dividends is limited to 100% of net income for the year-to-date plus retained net income for the two preceding years, provided it remains well-capitalized[61]. Regulatory Environment - The Dodd-Frank Act permanently increased deposit insurance to $250,000 for most separately insured deposit relationships[45]. - The FDIC assesses deposit insurance premiums based on the average total assets reduced by the amount of average tangible equity[46]. - The Company qualifies for an exclusion from the Volcker Rule restrictions due to its total consolidated assets being $10 billion or less[42]. - The Economic Growth, Regulatory Relief and Consumer Protection Act provides regulatory relief for community banks, including modifications to certain financial reform rules[35]. - The federal banking agencies have issued guidance focusing on risk management practices for concentrations in commercial real estate lending[65]. Financial Resources - As of December 31, 2024, the Bank had $175.5 million in Federal Home Loan Bank (FHLB) advances and $1.1 billion available on its line of credit with the FHLB[68]. - The Bank is required to maintain FHLB stock of at least 0.4% of its total assets, and as of December 31, 2024, it held $8.6 million in FHLB stock, complying with this requirement[69]. Compliance and Ratings - The Bank received a "Satisfactory" rating under the Community Reinvestment Act in its most recent federal examination[60]. - The Bank has established anti-money laundering compliance programs to prevent the use of the financial system for illegal activities[67]. Cybersecurity - The new cybersecurity rules require the Bank to notify its primary federal regulator of significant cybersecurity incidents within 36 hours[73]. - The Securities and Exchange Commission mandates registrants to disclose material cybersecurity incidents and their impact on operations[74]. Reserve Requirements - The Federal Reserve Board's reserve requirement ratio was reduced to zero percent effective March 26, 2020, and remained at zero percent as of December 31, 2024[70].

Company Overview - Home Bancorp (HBCP) is a financial holding company headquartered in Lafayette, with a stock price change of -0.95% since the beginning of the year [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 2.36%, which is higher than the Banks - Southeast industry's yield of 2.25% and the S&P 500's yield of 1.57% [3] Dividend Performance - Home Bancorp's current annualized dividend of $1.08 represents a 6.9% increase from the previous year [4] - Over the past five years, the company has increased its dividend four times, achieving an average annual increase of 3.74% [4] - The current payout ratio is 23%, indicating that the company paid out 23% of its trailing 12-month earnings per share as dividends [4] Earnings Growth Expectations - For the fiscal year 2025, the Zacks Consensus Estimate projects earnings of $4.77 per share, reflecting a year-over-year earnings growth rate of 4.61% [5] Investment Appeal - HBCP is considered an attractive dividend play and a compelling investment opportunity, currently holding a Zacks Rank of 2 (Buy) [7]

Company Overview - Home Bancorp (HBCP) is a financial holding company based in Lafayette, operating in the Finance sector with a year-to-date share price change of 7.08% [3] - The company currently pays a dividend of $0.27 per share, resulting in a dividend yield of 2.18%, which is slightly below the Banks - Southeast industry's yield of 2.22% and above the S&P 500's yield of 1.53% [3] Dividend Performance - Home Bancorp's annualized dividend of $1.08 has increased by 6.9% from the previous year [4] - Over the past five years, the company has raised its dividend four times, achieving an average annual increase of 3.74% [4] - The current payout ratio stands at 23%, indicating that the company distributes 23% of its trailing 12-month earnings per share as dividends [4] Earnings Growth - The Zacks Consensus Estimate for Home Bancorp's earnings in 2025 is projected at $4.78 per share, reflecting a year-over-year earnings growth rate of 4.82% [5] Investment Appeal - Home Bancorp is recognized as an attractive dividend investment, supported by a Zacks Rank of 2 (Buy), indicating a compelling investment opportunity [7]