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

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HBCP

Home Bancorp

(NASDAQ:HBCP)

Rating:79Outperform
Price Target:
$65.00
▲(18.18%Upside)
Home Bancorp's overall score reflects strong financial performance and positive technical momentum. Valuation and earnings call feedback are supportive, but challenges in loan growth and rising debt warrant attention.
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. operates as the bank holding company for Home Bank, National Association that provides various banking products and services in Louisiana and Mississippi. It offers deposit products, including interest-bearing and noninterest-bearing checking, money market, savings, NOW, and certificates of deposit accounts. The company also provides various loan products, such as one-to four-family first mortgage loans, home equity loans and lines, commercial real estate loans, construction and land loans, multi-family residential loans, commercial and industrial loans, and consumer loans. In addition, it invests in securities; and offers credit cards and online banking services. The company operates through a network of 19 banking offices in the Acadiana, four banking offices in Baton Rouge, six banking offices in the Greater New Orleans area, six banking offices in the Northshore region, and three banking offices in Natchez. Home Bancorp, Inc. was founded in 1908 and is headquartered in Lafayette, Louisiana.
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:Jul 21, 2025
(Q2-2025)
|
% Change Since: -2.60%|
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Positive
The earnings call reflected a generally positive outlook with strong net income growth, NIM expansion, and deposit growth. However, there were challenges in loan growth due to slower commercial construction activity, and an increase in nonperforming loans and noninterest expenses. Overall, the positive aspects slightly outweigh the challenges.
Q2-2025 Updates
Positive Updates
Net Income Growth
Second quarter net income of $11.3 million, or $1.45 per share, increased $0.08 from the first quarter and $0.43 from the same quarter last year, reflecting a 3% increase from the prior quarter and a 39% increase year-over-year.
Net Interest Margin Expansion
Net interest margin (NIM) expanded for the fifth consecutive quarter to 4.04%, a 13 basis point increase from the prior quarter, driven by an increase in earning asset yields and stable interest-bearing deposit costs.
Deposit Growth
Deposits increased at an 11% annual rate in the second quarter, with noninterest-bearing deposits increasing by $41.9 million.
Loan Growth and Pricing Discipline
Loans grew by $17.3 million in the second quarter, representing a 3% growth rate. Despite slower growth due to commercial construction slowdowns, loan yields are expected to continue to rise with new originations around 7.4%.
Strong Capital Management
Since 2019, tangible book value per share grew at an 8% annualized rate, with a 10.2% growth rate in annual EPS. Dividend per share increased by 27%, and 17% of shares were repurchased.
Negative Updates
Increased Nonperforming Loans
Classified and nonperforming loans increased due to the downgrade of 4 loans totaling $18 million. Total criticized loans increased to $51.6 million, up from 1.36% to 1.87% of loans.
Challenges in Loan Growth
Second quarter loan growth was negatively impacted by slower commercial construction activity and paydowns, totaling about $20 million.
Noninterest Expense Increase
Noninterest expenses increased by $828,000 to $22.4 million, driven by compensation-related expenses and a $987,000 write-down of SBA receivables.
Company Guidance
During Home Bancorp's second quarter 2025 earnings call, the company provided guidance indicating a cautious but optimistic outlook. The bank reported a net income of $11.3 million, or $1.45 per share, highlighting an $0.08 per share increase from the previous quarter and a $0.43 increase from the prior year. The net interest margin (NIM) expanded to 4.04%, marking the fifth consecutive quarter of growth, while the return on assets (ROA) increased by 2 basis points to 1.31%. Loan growth was recorded at $17.3 million, or 3%, though the bank acknowledged that growth could slow to the lower end of their 4% to 6% guidance without anticipated rate cuts. Deposits grew at an 11% annual rate, with noninterest-bearing deposits increasing by $41.9 million. The bank's loan-to-deposit ratio target is 90% to 92%. Net charge-offs remained low at 6 basis points, and the overall cost of deposits decreased slightly to 1.84%. Home Bancorp also mentioned strategic moves in capital management, including a share repurchase of 147,000 shares at an average price of $43.72, and an increased dividend per share by 27% since 2019. The bank remains open to mergers and acquisitions, particularly in Texas and Louisiana, with a focus on partners that fit well with their long-term objectives.

Home Bancorp Financial Statement Overview

Summary
Home Bancorp exhibits strong financial performance with consistent revenue growth and efficient cash flow management. The balance sheet remains stable with a healthy equity position, though the increasing debt levels require monitoring.
Income Statement
85
Very Positive
Home Bancorp has shown strong revenue growth with a consistent increase from $118.4M in 2020 to $202.9M in TTM 2025. Gross profit margin has remained healthy, reflecting efficient cost management. However, there has been a slight decline in EBIT and EBITDA margins over the years, indicating some pressure on operational efficiency.
Balance Sheet
78
Positive
The company's balance sheet is relatively strong, with a moderate debt-to-equity ratio and a healthy equity ratio indicating a stable financial position. Return on equity has been impressive, showcasing effective shareholder capital utilization. However, the total debt has increased over the years, which could pose a future risk if not managed properly.
Cash Flow
82
Very Positive
Operating cash flow has remained robust, supporting strong free cash flow generation. The cash flow to net income ratios are healthy, indicating effective cash management. However, fluctuations in investing cash flow suggest varying levels of capital investment, which could impact future liquidity if not strategically aligned with growth objectives.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue199.39M178.30M139.81M123.17M118.43M
Gross Profit132.37M132.49M124.13M127.03M93.79M
EBITDA48.68M53.72M45.97M64.03M34.03M
Net Income36.43M40.24M34.07M48.62M24.77M
Balance Sheet
Total Assets3.44B3.32B3.23B2.94B2.59B
Cash, Cash Equivalents and Short-Term Investments114.46M91.95M574.27M929.42M443.05M
Total Debt235.54M252.49M235.76M31.59M34.36M
Total Liabilities3.05B2.95B2.90B2.59B2.27B
Stockholders Equity396.09M367.44M329.95M351.90M321.84M
Cash Flow
Free Cash Flow44.67M39.33M48.49M53.24M46.88M
Operating Cash Flow48.73M41.36M51.20M55.72M49.03M
Investing Cash Flow-107.11M-94.25M-495.35M54.93M-260.04M
Financing Cash Flow81.09M41.33M-69.89M302.85M359.11M

Home Bancorp Technical Analysis

Technical Analysis Sentiment
Neutral
Last Price55.00
Price Trends
50DMA
52.40
Positive
100DMA
49.21
Positive
200DMA
48.26
Positive
Market Momentum
MACD
1.02
Positive
RSI
53.06
Neutral
STOCH
5.49
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For HBCP, the sentiment is Neutral. The current price of 55 is below the 20-day moving average (MA) of 55.60, above the 50-day MA of 52.40, and above the 200-day MA of 48.26, indicating a neutral trend. The MACD of 1.02 indicates Positive momentum. The RSI at 53.06 is Neutral, neither overbought nor oversold. The STOCH value of 5.49 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 (65)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$429.08M10.7210.55%1.91%8.03%15.18%
78
Outperform
$371.10M12.6013.71%1.62%19.67%68.34%
78
Outperform
$407.68M11.4711.51%0.69%10.47%13.63%
78
Outperform
$426.17M10.6411.53%3.18%0.85%18.21%
75
Outperform
$445.53M10.1520.97%2.04%1.20%46.86%
65
Neutral
£5.01B10.336.93%45.34%24.07%4.38%
62
Neutral
$386.63M11.206.47%6.90%14.47%-18.94%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HBCP
Home Bancorp
55.00
12.88
30.58%
BSRR
Sierra Bancorp
30.84
3.18
11.50%
MSBI
Midland States Bancrop
18.09
-3.87
-17.62%
BSVN
Bank7
47.15
7.05
17.58%
RRBI
Red River Bancshares
60.85
6.28
11.51%
USCB
USCB Financial Holdings, Inc. Class A
18.51
2.52
15.76%

Home Bancorp Corporate Events

Executive/Board Changes
Home Bancorp Enters Salary Continuation Agreements
Neutral
Jul 23, 2025

On July 21, 2025, Home Bank, N.A. entered into salary continuation agreements with its senior executive officers, Ms. Lemoine and Messrs. Herpin and Zollinger. These agreements promise a retirement benefit of $125,000 annually if they remain employed until age 67, with benefits vesting over ten years. In cases of early retirement or changes in control, different lump sum payments are stipulated, ensuring financial security for the executives. These agreements align with those of other senior executives, differing mainly in retirement age and vesting schedule.

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.

DividendsFinancial Disclosures
Home Bancorp Reports Q2 Earnings and Dividend Increase
Positive
Jul 21, 2025

On July 21, 2025, Home Bancorp, Inc. announced its second-quarter financial results, reporting a net income of $11.3 million, an increase from the previous quarter. The company also declared a 7% increase in its quarterly cash dividend to $0.29 per share, payable on August 15, 2025. Despite an increase in nonperforming assets, the company maintained a solid allowance for loan losses, indicating strong capital and liquidity positions, which are expected to support future growth.

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 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.

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 24, 2025