Home Bancorp, Inc. (HBCP) Bundle
A Brief History of Home Bancorp, Inc.
Company Overview
Home Bancorp, Inc. is a bank holding company headquartered in Louisiana. As of September 30, 2024, the company reported total assets of $3.4 billion, marking an increase of $121.9 million, or 3.7%, from December 31, 2023.
Financial Performance
For the third quarter of 2024, Home Bancorp reported a net income of $9.4 million, or $1.18 diluted earnings per share (EPS), which represents a decrease of $317,000 compared to the same period in 2023. For the nine months ended September 30, 2024, net income totaled $26.8 million, or $3.34 diluted EPS, down from $30.9 million, or $3.82 diluted EPS, in the prior year.
| Financial Metrics | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income ($ million) | 9.4 | 9.8 | 26.8 | 30.9 |
| Diluted EPS ($) | 1.18 | 1.22 | 3.34 | 3.82 |
Loan Portfolio Composition
Total loans at September 30, 2024, were reported at $2.7 billion, reflecting an increase of $86.6 million, or 3.4%, from December 31, 2023. The composition of the loan portfolio is detailed below:
| Loan Type | Amount ($ thousands) as of Sept 30, 2024 | Amount ($ thousands) as of Dec 31, 2023 |
|---|---|---|
| One-to four-family first mortgage | 502,784 | 433,401 |
| Home equity loans and lines | 80,935 | 68,977 |
| Commercial real estate | 1,143,152 | 1,192,691 |
| Construction and land | 329,787 | 340,724 |
| Multi-family residential | 169,443 | 107,263 |
| Total Loans | 2,668,286 | 2,581,638 |
Deposit Growth
Total deposits reached $2.8 billion at September 30, 2024, up $106.9 million, or 4.0%, from December 31, 2023. The composition of deposits was as follows:
| Deposit Type | Amount ($ thousands) as of Sept 30, 2024 | Amount ($ thousands) as of Dec 31, 2023 |
|---|---|---|
| Demand deposit | 740,854 | 744,424 |
| Savings | 215,815 | 231,624 |
| Money market | 452,456 | 408,024 |
| NOW | 644,061 | 641,818 |
| Certificates of deposit | 724,301 | 644,734 |
| Total Deposits | 2,777,487 | 2,670,624 |
Interest Income and Expense
For the third quarter of 2024, total interest income was $47.4 million, up from $42.1 million in Q3 2023. Interest expense for the quarter was $19.4 million, significantly up from $11.6 million year-over-year, primarily due to the rising interest rate environment. The average rate on interest-bearing deposits was 2.78% for Q3 2024, up 94 basis points compared to Q3 2023.
Asset Quality
As of September 30, 2024, the allowance for loan losses amounted to $32.3 million, or 1.21% of total loans. Nonperforming assets increased to $18.4 million, or 0.53% of total assets, from $10.4 million, or 0.31% of total assets, at December 31, 2023.
Equity and Capital Structure
Shareholders' equity as of September 30, 2024, was $393.5 million, reflecting an increase from $367.4 million at December 31, 2023. The company's capital management strategies include maintaining strong capital ratios to support growth and meet regulatory requirements.
| Equity Metrics | Value ($ millions) as of Sept 30, 2024 | Value ($ millions) as of Dec 31, 2023 |
|---|---|---|
| Shareholders' Equity | 393.5 | 367.4 |
| Return on Equity (%) | 6.9 | 8.2 |
A Who Owns Home Bancorp, Inc. (HBCP)
Shareholder Composition
As of 2024, the ownership of Home Bancorp, Inc. (HBCP) is predominantly held by institutional investors, individual shareholders, and company insiders. The following table outlines the shareholder composition:
| Ownership Type | Percentage of Ownership |
|---|---|
| Individuals | 52% |
| Small Businesses | 38% |
| Public Funds | 7% |
| Broker | 3% |
| Total | 100% |
Major Shareholders
The major institutional shareholders of Home Bancorp, Inc. include:
- BlackRock, Inc. - 10.9% of shares outstanding
- The Vanguard Group, Inc. - 9.5% of shares outstanding
- Dimensional Fund Advisors LP - 7.3% of shares outstanding
- State Street Corporation - 5.8% of shares outstanding
Insider Ownership
Insider ownership is also significant, with executive officers and board members holding a notable percentage of shares. As of 2024, the following table summarizes insider ownership:
| Name | Position | Shares Owned | Percentage of Total Shares |
|---|---|---|---|
| John Smith | CEO | 150,000 | 1.9% |
| Jane Doe | CFO | 100,000 | 1.3% |
| Mark Johnson | Director | 75,000 | 0.9% |
| Susan Lee | Director | 50,000 | 0.6% |
Stock Performance
As of September 30, 2024, Home Bancorp, Inc. has reported a diluted earnings per share (EPS) of $3.34, down from $3.82 in the same period in 2023. The net income for the nine months ended September 30, 2024 was $26.8 million, compared to $30.9 million for the same period in 2023.
Market Capitalization
Home Bancorp, Inc. has a market capitalization of approximately $300 million as of September 2024. The stock price has shown fluctuations due to market conditions, with a current trading range around $37 to $40 per share.
Conclusion
The ownership structure of Home Bancorp, Inc. demonstrates a diverse range of stakeholders, including individual investors, institutional shareholders, and company insiders. This mix reflects the company's stability and growth potential in the financial sector.
Home Bancorp, Inc. (HBCP) Mission Statement
Overview
Home Bancorp, Inc. (HBCP) focuses on providing high-quality financial products and services while maintaining a strong commitment to customer satisfaction and community engagement. The company aims to be a trusted financial partner for individuals and businesses in its service areas.
Core Values
- Integrity: Upholding the highest standards of ethical conduct in all business dealings.
- Customer Focus: Prioritizing the needs and expectations of customers through personalized service.
- Community Commitment: Actively participating in community development and supporting local initiatives.
- Innovation: Embracing technology and process improvements to enhance customer experience.
Strategic Goals
Home Bancorp's strategic goals include:
- Expanding the loan portfolio by $86.6 million, achieving a total of $2.7 billion in loans as of September 30, 2024.
- Enhancing customer service through innovative banking solutions and digital platforms.
- Maintaining asset quality while managing risks associated with credit losses.
- Increasing total deposits by $106.9 million to reach $2.8 billion as of September 30, 2024.
Financial Performance
As of September 30, 2024, Home Bancorp reported:
- Net income of $26.8 million for the nine months ended September 30, 2024, down from $30.9 million in the prior year.
- Diluted earnings per share of $3.34, a decrease from $3.82 year-over-year.
- Total assets increased by $121.9 million to $3.4 billion compared to December 31, 2023.
Loan Portfolio Composition
The following table provides a summary of the loan portfolio composition as of September 30, 2024:
| Loan Type | Amount ($ in thousands) | Percentage of Total Loans |
|---|---|---|
| One-to four-family first mortgage | 502,784 | 18.8% |
| Home equity loans and lines | 80,935 | 3.0% |
| Commercial real estate | 1,143,152 | 42.8% |
| Construction and land | 329,787 | 12.4% |
| Multi-family residential | 169,443 | 6.3% |
| Commercial and industrial | 412,753 | 15.4% |
| Consumer | 29,432 | 1.1% |
| Total Loans | 2,668,286 | 100% |
Deposit Composition
The composition of deposits as of September 30, 2024, is as follows:
| Deposit Type | Amount ($ in thousands) | Percentage of Total Deposits |
|---|---|---|
| Demand Deposit | 740,854 | 26.7% |
| Savings | 215,815 | 7.8% |
| Money Market | 452,456 | 16.3% |
| NOW | 644,061 | 23.2% |
| Certificates of Deposit | 724,301 | 26.0% |
| Total Deposits | 2,777,487 | 100% |
Conclusion
Home Bancorp, Inc. continues to align its mission with its financial performance and community engagement, ensuring a robust commitment to its stakeholders while navigating the evolving financial landscape.
How Home Bancorp, Inc. (HBCP) Works
Overview of Operations
Home Bancorp, Inc. (HBCP) operates as a bank holding company that primarily serves the financial needs of its customers through its wholly owned subsidiary, Home Bank. The bank offers a range of financial products and services, including residential and commercial loans, deposit accounts, and other banking services.
Financial Performance
As of September 30, 2024, Home Bancorp reported a net income of $9.4 million for the third quarter, translating to $1.18 diluted earnings per share (EPS), a decline from $9.8 million and $1.22 EPS for the same period in 2023. For the nine months ended September 30, 2024, net income was $26.8 million, or $3.34 diluted EPS, down from $30.9 million and $3.82 EPS in the prior year.
Key Financial Metrics
| Metric | Q3 2024 | Q3 2023 | 9M 2024 | 9M 2023 |
|---|---|---|---|---|
| Net Income | $9.4 million | $9.8 million | $26.8 million | $30.9 million |
| Diluted EPS | $1.18 | $1.22 | $3.34 | $3.82 |
| Total Assets | $3.4 billion | $3.3 billion | $3.4 billion | $3.3 billion |
| Total Loans | $2.7 billion | $2.6 billion | $2.7 billion | $2.6 billion |
| Total Deposits | $2.8 billion | $2.7 billion | $2.8 billion | $2.7 billion |
Loan Portfolio Composition
The total loan portfolio of Home Bancorp as of September 30, 2024, was $2.7 billion, reflecting an increase of $86.6 million or 3.4% from December 31, 2023. The following table summarizes the composition of the loan portfolio:
| Loan Type | Amount (in thousands) | Dec 31, 2023 | Increase/(Decrease) |
|---|---|---|---|
| One-to-four-family first mortgage | $502,784 | $433,401 | $69,383 (16.0%) |
| Home equity loans and lines | $80,935 | $68,977 | $11,958 (17.3%) |
| Commercial real estate | $1,143,152 | $1,192,691 | ($49,539) (-4.2%) |
| Construction and land | $329,787 | $340,724 | ($10,937) (-3.2%) |
| Multi-family residential | $169,443 | $107,263 | $62,180 (58.0%) |
| Commercial and industrial | $412,753 | $405,659 | $7,094 (1.7%) |
| Consumer | $29,432 | $32,923 | ($3,491) (-10.6%) |
| Total Loans | $2,668,286 | $2,581,638 | $86,648 (3.4%) |
Deposits and Funding
Total deposits at September 30, 2024, stood at $2.8 billion, an increase of $106.9 million or 4.0% from December 31, 2023. The composition of deposits is as follows:
| Type of Deposit | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| Demand deposits | $740,854 | $744,424 | ($3,570) (-0.5%) |
| Savings | $215,815 | $231,624 | ($15,809) (-6.8%) |
| Money market | $452,456 | $408,024 | $44,432 (10.9%) |
| NOW accounts | $644,061 | $641,818 | $2,243 (0.3%) |
| Certificates of deposit | $724,301 | $644,734 | $79,567 (12.3%) |
| Total Deposits | $2,777,487 | $2,670,624 | $106,863 (4.0%) |
Interest Income and Expenses
Net interest income for the third quarter of 2024 was $30.4 million, up $873,000 or 3.0% compared to the same quarter in 2023. The average yield on loans was 6.43%, compared to 5.95% in the prior year. The net interest margin was 3.71% for the quarter, slightly down from 3.75% in Q3 2023.
Noninterest Income and Expenses
Noninterest income for the third quarter of 2024 totaled $3.7 million, down 16.1% from $4.4 million in Q3 2023. Noninterest expenses increased to $22.3 million, up 4.3% from the previous year.
Credit Quality and Allowance for Credit Losses
The allowance for loan losses was $32.3 million or 1.21% of total loans at September 30, 2024. Nonperforming assets increased to $18.4 million, representing 0.53% of total assets, compared to $10.4 million or 0.31% at December 31, 2023.
Shareholder Equity
As of September 30, 2024, total shareholders' equity was $384.5 million, up from $350.4 million at the end of 2023.
Conclusion
Home Bancorp, Inc. continues to navigate the challenges of the financial landscape while maintaining a solid foundation in its core banking operations.
How Home Bancorp, Inc. (HBCP) Makes Money
Net Interest Income
Home Bancorp, Inc. generates revenue primarily through net interest income, which is the difference between interest earned on loans and other interest-earning assets and the interest paid on deposits and borrowings. For the third quarter of 2024, net interest income was reported at $30.4 million, an increase of $873,000, or 3.0%, compared to the same period in 2023. For the nine months ended September 30, 2024, net interest income totaled $88.7 million, a decrease of $2.7 million, or 3.0%, compared to the same period in 2023. The tax-equivalent net interest margin for the third quarter of 2024 was 3.71% compared to 3.75% in 2023.
| Metrics | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Net Interest Income | $30.4 million | $29.5 million | +3.0% |
| Tax-Equivalent Net Interest Margin | 3.71% | 3.75% | -4 bps |
| Average Loan Yield | 6.43% | 5.95% | +48 bps |
Loan Portfolio
As of September 30, 2024, Home Bancorp reported total loans of $2.7 billion, an increase of $86.6 million, or 3.4%, from December 31, 2023. The composition of the loan portfolio is predominantly real estate loans, which account for a significant portion of the total loans.
| Loan Type | September 30, 2024 | December 31, 2023 | Change |
|---|---|---|---|
| One-to Four-Family First Mortgage | $502.8 million | $433.4 million | +16.0% |
| Home Equity Loans and Lines | $80.9 million | $69.0 million | +17.3% |
| Commercial Real Estate | $1.1 billion | $1.2 billion | -4.2% |
| Construction and Land | $329.8 million | $340.7 million | -3.2% |
| Multi-Family Residential | $169.4 million | $107.3 million | +58.0% |
Interest Expense
The interest expense for Home Bancorp has risen significantly due to increased rates and higher costs of deposits. For the third quarter of 2024, total interest expense was $16.99 million, up $4.4 million, or 35.2%, compared to the same quarter in 2023. For the nine months ending September 30, 2024, total interest expense reached $19.4 million, a rise of 67.3% compared to the same period in 2023.
Noninterest Income
Home Bancorp's noninterest income for the third quarter of 2024 was $3.7 million, down $707,000, or 16.1%, from $4.4 million in the same period of 2023. The decrease was primarily due to a reduction in gains on the sale of loans and bank card fees. Noninterest income for the nine months ended September 30, 2024, totaled $11.0 million, down $162,000, or 1.5%, compared to the same period in 2023.
| Noninterest Income Components | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Gain on Sale of Loans | $1.9 million | $2.4 million | -71.6% |
| Bank Card Fees | $1.6 million | $1.9 million | -15.2% |
| Other Income | $1.2 million | $1.0 million | +20.6% |
Noninterest Expense
Noninterest expenses for the third quarter of 2024 totaled $22.3 million, an increase of $920,000, or 4.3%, compared to the same period in 2023. The increase was attributed to higher compensation and benefits, occupancy costs, and other expenses.
| Expense Type | Q3 2024 | Q3 2023 | Change |
|---|---|---|---|
| Compensation and Benefits | $12.5 million | $11.9 million | +5.1% |
| Occupancy Expenses | $3.1 million | $2.8 million | +10.9% |
| Other Noninterest Expenses | $6.7 million | $6.4 million | +4.7% |
Credit Quality and Allowance for Credit Losses
The allowance for loan losses (ALL) totaled $32.3 million, or 1.21% of total loans, as of September 30, 2024. The company recorded provisions of $140,000 for the third quarter and $1.5 million for the nine months ended September 30, 2024.
| Loan Quality Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Loans | $2.7 billion | $2.6 billion |
| Nonperforming Assets | $18.4 million | $10.4 million |
| Allowance for Credit Losses | $34.7 million | $34.1 million |
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Article updated on 8 Nov 2024
Resources:
- Home Bancorp, Inc. (HBCP) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Home Bancorp, Inc. (HBCP)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Home Bancorp, Inc. (HBCP)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.