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Home Bancorp (HBCP)
:HBCP
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Home Bancorp (HBCP) AI Stock Analysis

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Home Bancorp

(NASDAQ:HBCP)

Rating:78Outperform
Price Target:
$63.00
▲(12.04%Upside)
Home Bancorp's strong financial performance and positive earnings call sentiment are the most significant contributors to the score. Technical indicators suggest caution due to overbought conditions, while valuation metrics are favorable. The company's strategic initiatives and market success further support a positive outlook.
Positive Factors
Financial Performance
Analyst upgrades shares of HBCP to an Outperform rating following results that exceeded expectations on both an EPS and PPNR basis.
Profitability
The $60 price target for HBCP assumes the shares trade up to a justified 12x P/E due to its above-peer profitability, stable balance sheet, and well-managed credit risk.
Negative Factors
Earnings Growth
The lack of larger scale year-over-year EPS growth could inhibit the upside in the multiple to some degree for HBCP.

Home Bancorp (HBCP) vs. SPDR S&P 500 ETF (SPY)

Home Bancorp Business Overview & Revenue Model

Company DescriptionHome Bancorp, Inc. (HBCP) is a financial holding company headquartered in Lafayette, Louisiana. It operates primarily through its wholly-owned subsidiary, Home Bank, N.A., which provides a comprehensive range of banking services. The company focuses on offering personalized banking solutions, including retail banking, commercial banking, and mortgage lending, catering to individuals, small businesses, and commercial clients across Louisiana and Mississippi.
How the Company Makes MoneyHome Bancorp generates revenue primarily through interest income from its loan portfolio and investments. The company earns money by providing loans to individuals and businesses, collecting interest payments over time. Additionally, it receives fee income from various banking services, such as transaction fees, service charges, and mortgage origination fees. Home Bancorp's profitability is significantly influenced by its ability to manage interest rate spreads, the difference between interest earned on loans and paid on deposits, and maintaining strong customer relationships to drive fee-based revenue. Strategic partnerships with local businesses and community involvement also contribute to its financial performance.

Home Bancorp Earnings Call Summary

Earnings Call Date:Apr 21, 2025
(Q1-2025)
|
% Change Since: 31.01%|
Next Earnings Date:Jul 21, 2025
Earnings Call Sentiment Positive
The earnings call for Home Bancorp's first quarter of 2025 reflected a generally positive financial performance with significant growth in net income, net interest margin, and loan and deposit growth. However, there were challenges related to an increase in nonperforming assets due to a few specific loan relationships. Despite these challenges, the company displayed strong cost management and continued success in strategic markets like Houston. Overall, the positive aspects outweighed the negatives, indicating a strong financial position and strategic outlook.
Q1-2025 Updates
Positive Updates
Strong Net Income Growth
Net income for the first quarter was $11 million, or $1.37 per share, representing a 13% increase from the fourth quarter and a 20% increase from a year ago.
Net Interest Margin Expansion
Net interest margin expanded for the fourth consecutive quarter to 3.91%, with a return on assets increasing by 17 basis points to 1.29%.
Loan and Deposit Growth
Loans grew by $29.1 million, about 4% annualized, and deposits increased at a 7% annualized rate. Noninterest-bearing deposits increased by $21.9 million.
Houston Market Success
The Houston market has been a tremendous success with plans to upgrade and expand the physical footprint, including a new branch building.
Efficient Cost Management
The core efficiency ratio declined to 60% in Q1, with noninterest expense decreasing by $776,000.
Share Repurchase Activity
Repurchased 297,000 shares through April 17 at an average price of $43.82 per share, with a new 400,000 share repurchase plan approved.
Negative Updates
Increase in Nonperforming Assets
Nonperforming assets increased by $5.9 million to $21.5 million, or 62 basis points of total assets, primarily due to the downgrade of two relationships.
Challenges with Specific Loan Relationships
Two problematic loan relationships were highlighted, one involving a condominium development in Mississippi and the other a hotel renovation in Houston.
Company Guidance
In the first quarter of 2025, Home Bancorp reported a net income of $11 million, translating to $1.37 per share, marking a 13% increase from the previous quarter and a 20% rise year-over-year. The net interest margin expanded to 3.91%, while the return on assets improved by 17 basis points to 1.29%. The company experienced a 4% annualized growth in loans, amounting to a $29.1 million increase, and deposits grew at a 7% annualized rate. Home Bancorp maintained a stable allowance for loan loss ratio at 1.21% and recorded minimal net charge-offs of $32,000. Noninterest income rose to $4 million, with noninterest expenses expected to increase by 3.5% in 2025. The company anticipates loan growth of 4% to 6% annually and plans to continue share repurchases, supported by a new 400,000 share buyback plan.

Home Bancorp Financial Statement Overview

Summary
Home Bancorp presents a generally positive financial outlook with strong revenue growth of 39% and a solid balance sheet highlighted by a low debt-to-equity ratio of 0.35. However, there are areas for improvement, including a decrease in net profit margin from 30.4% to 19.7% and cash flow management challenges.
Income Statement
75
Positive
Home Bancorp's income statement shows a solid revenue growth trend with a 39% increase in total revenue from 2023 to 2024. The gross profit margin is strong at approximately 100% due to the nature of the banking industry. However, the net profit margin decreased from 30.4% in 2023 to 19.7% in 2024, indicating some pressure on profitability. EBIT margins also show a decline, suggesting a need for efficiency improvements.
Balance Sheet
80
Positive
The company's balance sheet is robust, with a low debt-to-equity ratio of 0.35, reflecting conservative leverage. Return on Equity (ROE) is healthy at 9.2% for 2024, slightly down from 10.9% in 2023, which indicates solid profitability relative to shareholder equity. The equity ratio stands at 11.5%, showing a stable capital structure, though slightly lower than industry peers.
Cash Flow
70
Positive
Cash flow analysis reveals a positive trajectory with a 13.6% growth in free cash flow from 2023 to 2024. The operating cash flow to net income ratio is 1.34, indicating strong cash generation relative to earnings. However, free cash flow to net income ratio decreased slightly, showing potential cash flow management issues.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue202.93M199.39M178.30M139.81M123.17M118.43M
Gross Profit135.42M132.37M132.49M124.13M127.03M93.79M
EBITDA50.93M48.68M53.72M45.97M64.03M34.03M
Net Income38.19M36.43M40.24M34.07M48.62M24.77M
Balance Sheet
Total Assets3.49B3.44B3.32B3.23B2.94B2.59B
Cash, Cash Equivalents and Short-Term Investments141.59M114.46M91.95M574.27M929.42M443.05M
Total Debt223.31M235.54M252.49M235.76M31.59M34.36M
Total Liabilities3.08B3.05B2.95B2.90B2.59B2.27B
Stockholders Equity402.83M396.09M367.44M329.95M351.90M321.84M
Cash Flow
Free Cash Flow44.30M44.67M39.33M48.49M53.24M46.88M
Operating Cash Flow50.98M48.73M41.36M51.20M55.72M49.03M
Investing Cash Flow-106.20M-107.11M-94.25M-495.35M54.93M-260.04M
Financing Cash Flow75.40M81.09M41.33M-69.89M302.85M359.11M

Home Bancorp Technical Analysis

Technical Analysis Sentiment
Positive
Last Price56.23
Price Trends
50DMA
50.56
Positive
100DMA
47.96
Positive
200DMA
47.16
Positive
Market Momentum
MACD
1.18
Negative
RSI
77.93
Negative
STOCH
94.73
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBCP, the sentiment is Positive. The current price of 56.23 is above the 20-day moving average (MA) of 51.01, above the 50-day MA of 50.56, and above the 200-day MA of 47.16, indicating a bullish trend. The MACD of 1.18 indicates Negative momentum. The RSI at 77.93 is Negative, neither overbought nor oversold. The STOCH value of 94.73 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for HBCP.

Home Bancorp Risk Analysis

Home Bancorp disclosed 22 risk factors in its most recent earnings report. Home Bancorp reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks

Home Bancorp Peers Comparison

Overall Rating
UnderperformOutperform
Sector (67)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
78
Outperform
$438.67M11.789.85%1.92%9.82%0.91%
78
Outperform
$428.40M12.0511.51%0.75%10.47%13.63%
75
Outperform
$420.40M9.4422.26%2.16%1.20%46.86%
73
Outperform
$340.82M12.2813.20%2.35%26.42%78.75%
72
Outperform
$445.52M11.3811.58%3.10%1.99%17.65%
67
Neutral
¥718.51B10.847.44%3.36%7.82%15.26%
58
Neutral
$402.55M13.775.03%6.63%14.75%-48.47%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HBCP
Home Bancorp
56.23
18.38
48.56%
BSRR
Sierra Bancorp
32.24
11.17
53.01%
MSBI
Midland States Bancrop
18.71
-2.37
-11.24%
BSVN
Bank7
44.49
14.28
47.27%
RRBI
Red River Bancshares
64.10
18.52
40.63%
USCB
USCB Financial Holdings, Inc. Class A
17.00
4.94
40.96%

Home Bancorp Corporate Events

Executive/Board Changes
Home Bancorp Extends Executive Employment Agreements
Neutral
May 21, 2025

On May 20, 2025, Home Bancorp, Inc. and Home Bank, N.A. extended the employment agreements for several executives, including John W. Bordelon, Darren E. Guidry, and David T. Kirkley, with terms now lasting until 2028 for Bordelon and 2027 for others. Additionally, new agreements were made with Mark C. Herpin, Natalie B. Lemoine, and John J. Zollinger, IV, mirroring existing terms for senior executives. These agreements include provisions for severance and benefits in cases of termination without cause or following a change in control, ensuring financial security and continuity for the executives involved.

The most recent analyst rating on (HBCP) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Home Bancorp stock, see the HBCP Stock Forecast page.

Executive/Board ChangesShareholder Meetings
Home Bancorp Holds Annual Shareholders Meeting
Neutral
May 14, 2025

Home Bancorp held its Annual Meeting of Shareholders on May 13, 2025, where a quorum was established with 6,282,353 shares represented. During the meeting, shareholders elected directors, approved executive compensation, and ratified the appointment of Wipfli LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025.

The most recent analyst rating on (HBCP) stock is a Buy with a $60.00 price target. To see the full list of analyst forecasts on Home Bancorp stock, see the HBCP Stock Forecast page.

Stock BuybackDividendsFinancial Disclosures
Home Bancorp Announces New Share Repurchase Program
Positive
Apr 21, 2025

On April 21, 2025, Home Bancorp announced a new share repurchase program allowing the purchase of up to 400,000 shares, approximately 5% of its outstanding common stock, reflecting confidence in its financial stability. Additionally, the company declared a quarterly cash dividend of $0.27 per share, to be paid on May 16, 2025. The company reported strong financial results for the first quarter of 2025, with net income rising to $11.0 million and growth in loans and deposits, despite an increase in nonperforming assets due to two loan relationships moving to nonaccrual status.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.Date of analysis: Jul 03, 2025