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1. Company Snapshot

1.a. Company Description

Home 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.

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1.b. Last Insights on HBCP

Here is a 90-word analysis of the negative drivers behind Home Bancorp's recent performance: Despite beating Q4 earnings and revenue estimates, Home Bancorp's margins may be squeezed by rising operating expenses, which increased 14.1% year-over-year. The company's loan growth remains sluggish, and its net interest margin compression may continue to weigh on profitability. Furthermore, the company's provision for loan losses increased, indicating potential credit quality issues.

1.c. Company Highlights

2. Bank's Q2 Earnings Beat Expectations with Strong NIM Expansion

The bank reported a net income of $11.3 million or $1.45 per share for the second quarter, exceeding expectations of $1.24 EPS. Net interest income increased to $33.4 million from $31.7 million in Q1, driven by a 4.04% net interest margin, which expanded for the fifth consecutive quarter. The return on assets (ROA) also improved by 2 basis points to 1.31%. Loans grew by $17.3 million or about 3% during the quarter, while deposit growth was strong, with noninterest-bearing deposits increasing by $41.9 million.

Publication Date: Jul -27

📋 Highlights
  • Net Income Growth: Reported second-quarter net income of $11.3 million, up $0.08 from Q1 and $0.43 year-over-year.
  • Net Interest Income Increase: Rose to $33.4 million in Q2 from $31.7 million in Q1, with a contractual rate of 7.44% on new loan originations.
  • Loan Growth and Originations: Loans grew $17.3 million (3% annualized), with solid originations but a decline in quarterly growth.
  • Cost of Interest-Bearing Liabilities: Decreased 3 basis points to 2.71%, with 90% of CDs renewed at an average rate of 3.85%.
  • NIM and Revenue Expectations: NIM expanded to 4.04%, with expectations for continued growth in net interest income and NIM improvement if rates remain stable.

Loan Growth and Interest Income

Although loan growth declined quarter-over-quarter to 3% annualized, the contractual rate on new loan originations was 7.44% in Q2, indicating a continued focus on maintaining pricing discipline. As David Kirkley noted, "the roll-off yield of 2.56% is expected as close to half of our investment portfolio is projected to be paid off over the next 3 years," which should contribute to margin and revenue growth.

Expense Management and Capital Allocation

Noninterest expenses increased by $828,000 to $22.4 million, primarily due to compensation-related expenses. However, the bank expects noninterest expense to be between $22.5 million and $23 million per quarter for the remainder of the year. The company has maintained a strong capital position, increasing the dividend and executing share repurchases. With the stock price at $140, it opens up opportunities to look at larger deals, around $350 million to $1 billion.

Valuation and Outlook

Given the bank's current price-to-tangible book value (P/TBV) is around 1.04, and dividend yield is 1.93%, the stock appears reasonably valued. Analysts estimate next year's revenue growth at 4.0%, which is a positive indicator. The bank's net interest margin is expected to continue to increase, driven by the repricing of loans and a potential rate cut in the second half of the year. As John Bordelon mentioned, "many 5-year balloons were originated in '20 and '21 at lower rates, and most should reprice by the end of '26," which should contribute to future revenue growth.

3. NewsRoom

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Chesapeake Financial Shares (OTCMKTS:CPKF) & Home Bancorp (NASDAQ:HBCP) Head-To-Head Review

Oct -22

Source: defenseworld.net

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Home Bancorp, Inc. (HBCP) Q3 2025 Earnings Call Transcript

Oct -21

Source: seekingalpha.com

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Home Bancorp (HBCP) Q3 Earnings: How Key Metrics Compare to Wall Street Estimates

Oct -20

Source: zacks.com

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Home Bancorp (HBCP) Q3 Earnings and Revenues Surpass Estimates

Oct -20

Source: zacks.com

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HOME BANCORP, INC. ANNOUNCES 2025 THIRD QUARTER RESULTS AND INCREASES QUARTERLY DIVIDEND BY 7%

Oct -20

Source: prnewswire.com

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Countdown to Home Bancorp (HBCP) Q3 Earnings: A Look at Estimates Beyond Revenue and EPS

Oct -15

Source: zacks.com

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Best Value Stocks to Buy for July 24th

Jul -24

Source: zacks.com

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Home Bancorp, Inc. (HBCP) Q2 2025 Earnings Conference Call Transcript

Jul -23

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.77%)

6. Segments

Banking and Related Activities

Expected Growth: 4.77%

Home Bancorp, Inc.'s 4.77% growth in Banking and Related Activities is driven by strong loan growth, increased deposit market share, and expansion of mortgage banking operations. Additionally, the company's focus on digital transformation, cost savings initiatives, and strategic acquisitions have contributed to its growth momentum.

7. Detailed Products

Personal Banking

Home Bancorp, Inc. offers a range of personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Business Banking

The company provides business banking services, including business checking and savings accounts, commercial loans, and cash management services.

Mortgage Lending

Home Bancorp, Inc. offers mortgage lending services, including fixed-rate and adjustable-rate mortgages, refinancing options, and home equity loans.

Investment Services

The company provides investment services, including brokerage services, investment advice, and wealth management.

Insurance Services

Home Bancorp, Inc. offers insurance services, including life insurance, disability insurance, and long-term care insurance.

8. Home Bancorp, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Home Bancorp, Inc. operates in a highly competitive industry, but the threat of substitutes is mitigated by the company's strong brand recognition and customer loyalty.

Bargaining Power Of Customers

Home Bancorp, Inc. has a diverse customer base, which reduces the bargaining power of individual customers. Additionally, the company's strong relationships with its customers reduce the likelihood of customers switching to competitors.

Bargaining Power Of Suppliers

Home Bancorp, Inc. has a diversified supplier base, which reduces the bargaining power of individual suppliers. The company's strong financial position also gives it negotiating power with its suppliers.

Threat Of New Entrants

The banking industry has high barriers to entry, including regulatory hurdles and capital requirements. This reduces the threat of new entrants to the market.

Intensity Of Rivalry

The banking industry is highly competitive, with many established players competing for market share. Home Bancorp, Inc. must continually innovate and improve its products and services to remain competitive.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 40.88%
Debt Cost 7.30%
Equity Weight 59.12%
Equity Cost 7.35%
WACC 7.33%
Leverage 69.14%

11. Quality Control: Home Bancorp, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Byline Bancorp

A-Score: 6.6/10

Value: 7.5

Growth: 7.9

Quality: 7.0

Yield: 3.0

Momentum: 6.0

Volatility: 8.3

1-Year Total Return ->

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Stock-Card
Home Bancorp

A-Score: 6.5/10

Value: 7.3

Growth: 5.9

Quality: 6.2

Yield: 4.0

Momentum: 8.5

Volatility: 7.3

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ChoiceOne Financial Services

A-Score: 6.1/10

Value: 5.5

Growth: 7.7

Quality: 5.4

Yield: 8.0

Momentum: 3.5

Volatility: 6.7

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First Mid Bancshares

A-Score: 6.0/10

Value: 6.8

Growth: 5.8

Quality: 5.2

Yield: 6.0

Momentum: 4.0

Volatility: 8.0

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Orange County Bancorp

A-Score: 5.3/10

Value: 6.5

Growth: 6.3

Quality: 7.1

Yield: 4.0

Momentum: 2.5

Volatility: 5.3

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Primis Financial

A-Score: 5.0/10

Value: 5.0

Growth: 3.9

Quality: 4.3

Yield: 8.0

Momentum: 2.5

Volatility: 6.3

1-Year Total Return ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

56.84$

Current Price

56.84$

Potential

-0.00%

Expected Cash-Flows