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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:
$61.00
â–²(8.44% Upside)
Home Bancorp's strong financial performance and positive earnings call sentiment are the primary drivers of the score. The technical analysis suggests mild bullish momentum, while the valuation is balanced. Monitoring of debt levels is advised.
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 derived from loans, which include residential mortgages, commercial real estate loans, and consumer loans. The bank earns interest on these loans by charging borrowers a specified rate, which is typically higher than the interest it pays on deposits. Additionally, HBCP receives non-interest income from various service fees associated with deposit accounts, ATM transactions, and wealth management services. The company may also engage in investment activities and earn income from securities, contributing to its overall revenue. Strategic partnerships with local businesses and organizations enhance its community outreach and customer base, further supporting its earnings.

Home Bancorp Earnings Call Summary

Earnings Call Date:Jul 21, 2025
(Q2-2025)
|
% Change Since: |
Next Earnings Date:Oct 15, 2025
Earnings Call Sentiment Positive
The earnings call presented a predominantly positive outlook with significant growth in net income and deposits, as well as continued expansion of net interest margin. Although there were challenges such as an increase in classified loans and higher noninterest expenses, these were counterbalanced by strong loan growth and a stable credit environment.
Q2-2025 Updates
Positive Updates
Increase in Net Income
Second quarter net income was $11.3 million or $1.45 per share, reflecting a $0.08 increase from the first quarter and a $0.43 increase from the previous year.
Net Interest Margin Expansion
Net interest margin expanded for the fifth consecutive quarter to 4.04%, a 13 basis point increase from the prior quarter.
Deposit Growth
Deposits increased at an 11% annual rate in the second quarter, with noninterest-bearing deposits increasing by $41.9 million.
Loan Growth
Loans grew by $17.3 million in the second quarter, which is about 3% growth.
Stable Credit Quality
Net charge-offs remained low at 3 basis points year-to-date, and the allowance for loan loss ratio was stable at 1.21%.
Negative Updates
Increase in Classified and Nonperforming Loans
Classified and nonperforming loans increased due to four loans downgraded during the quarter totaling $18 million.
Increased Noninterest Expenses
Noninterest expenses increased by $828,000 to $22.4 million, primarily due to compensation-related expenses and a $987,000 write-down of SBA receivables.
Slower Loan Growth Due to Paydowns
Loan growth was negatively impacted by slower commercial construction activity and $20 million in paydowns during the quarter.
Company Guidance
During the Home Bancorp Second Quarter 2025 Earnings Conference Call, the management provided comprehensive guidance on various financial metrics. They reported a second quarter net income of $11.3 million, translating to $1.45 per share, which is an increase of $0.08 from the previous quarter and $0.43 year-over-year. The net interest margin (NIM) expanded for the fifth consecutive quarter, reaching 4.04%, primarily driven by an 8 basis point increase in earning asset yields and steady interest-bearing deposit costs. The return on assets (ROA) increased by 2 basis points to 1.31%. Loan growth was at 3%, despite a $20 million impact from slower commercial construction activity and paydowns. The company expects loan growth to reach the lower end of their 4% to 6% guidance without interest rate cuts. Deposit growth was strong, with an 11% annual rate increase, and noninterest-bearing deposits rose by $41.9 million, maintaining 27% of total deposits. Home Bancorp is focusing on pricing discipline, with new loan originations averaging a 7.4% yield. Noninterest expenses increased to $22.4 million due to compensation-related costs, while noninterest income was stable at $3.7 million. The company is also active in capital management, having repurchased 147,000 shares at an average price of $43.72, and has 391,000 shares remaining under its buyback plan. Looking forward, Home Bancorp is optimistic about its M&A prospects, with potential opportunities in both Louisiana and Texas.

Home Bancorp Financial Statement Overview

Summary
Home Bancorp demonstrates solid financial performance with strong revenue growth and efficient cash flow management. The balance sheet is stable, but 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.
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 Price56.25
Price Trends
50DMA
54.20
Positive
100DMA
51.66
Positive
200DMA
49.08
Positive
Market Momentum
MACD
0.93
Negative
RSI
60.19
Neutral
STOCH
69.85
Neutral
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 56.25 is above the 20-day moving average (MA) of 54.42, above the 50-day MA of 54.20, and above the 200-day MA of 49.08, indicating a bullish trend. The MACD of 0.93 indicates Negative momentum. The RSI at 60.19 is Neutral, neither overbought nor oversold. The STOCH value of 69.85 is Neutral, 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 (68)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
79
Outperform
$440.14M10.7810.55%1.94%8.03%15.18%
78
Outperform
$349.97M11.8513.71%2.01%19.67%68.34%
75
Outperform
$457.81M10.4220.97%1.98%-2.96%37.09%
75
Outperform
$411.65M10.4511.53%3.27%0.85%18.21%
72
Outperform
$430.71M11.3812.02%0.74%9.09%23.58%
68
Neutral
$17.80B11.8710.23%3.74%9.69%1.18%
60
Neutral
$390.65M10.95-16.46%6.89%14.49%-379.97%
* Financial Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
HBCP
Home Bancorp
56.25
15.69
38.68%
BSRR
Sierra Bancorp
30.29
2.61
9.43%
MSBI
Midland States Bancrop
18.14
-2.57
-12.41%
BSVN
Bank7
48.44
10.97
29.28%
RRBI
Red River Bancshares
64.51
14.73
29.59%
USCB
USCB Financial Holdings, Inc. Class A
17.43
3.58
25.85%

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.

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.

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.

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: Aug 19, 2025