Home Bancorp (HBCP) could be a solid addition to your portfolio given a notable revision in the company's earnings estimates. While the stock has been gaining lately, the trend might continue since its earnings outlook is still improving.Analysts' growing optimism on the earnings prospects of this financial holding company is driving estimates higher, which should get reflected in its stock price. After all, empirical research shows a strong correlation between trends in earnings estimate revisions and near ...

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]