Home Bancorp (HBCP) Q2 2024 earnings summary

Executive summary

• Q2 2024 net income was $8.1 million ($1.02 per share), down from prior periods, with total assets at $3.4 billion and 42 locations across Southern Louisiana, Western Mississippi, and Houston.

• Loan growth was 1.5% sequentially (6% annualized), with total loans at $2.7 billion; Houston market led growth, while construction and land loans declined.

• Net interest margin (NIM) for Q2 2024 was 3.66%, up from Q1 but down year-over-year; average rate paid on interest-bearing deposits rose to 2.69%.

• Nonperforming assets were $17.0 million (0.50% of assets), with nonperforming loans at 0.63% of total loans; credit quality showed improvement from Q1 but some deterioration year-over-year.

• Leadership changes included a new COO and promotions to Senior Executive Vice Presidents.

Financial highlights

• Net interest income was $29.4 million in Q2 2024, up sequentially but down 3% year-over-year; noninterest income rose to $3.8 million.

• Noninterest expense increased to $21.8 million, mainly due to higher compensation and occupancy costs.

• Provision for loan losses was $1.3 million, reflecting loan growth and higher net charge-offs.

• Book value per share was $46.51; tangible book value per share was $35.90 at quarter end.

• Dividend of $0.25 per share declared, payable August 9, 2024.

Outlook and guidance

• 2024 loan growth expected between 4% and 6%, with NIM projected to slowly increase as loan yields rise and deposit cost increases slow.

• Noninterest income projected between $3.6 million and $3.8 million for Q3 and Q4; core noninterest expense expected between $22 million and $22.5 million.

• Management highlights strong credit discipline and well-capitalized position for continued growth.

• Interest rate risk simulations show a 1.7% increase in projected net interest income for a +200 bps rate shift, and a 3.2% decrease for a -200 bps shift.

• CD costs may stabilize or decline if rates remain unchanged or fall.