Home Bancorp (HBCP) Q3 2024 earnings summary

Executive summary

• Net income for Q3 2024 was $9.4 million ($1.18 diluted EPS), up 16% from Q2 2024 and down 3% year-over-year, with ROA at 1.10% and ROE at 9.8%.

• Total assets reached $3.44 billion, loans $2.7 billion, and deposits $2.8 billion as of September 30, 2024.

• Deposit growth was strong, increasing $55 million (8% annualized), mainly in money market and interest-bearing checking accounts, reducing the loan-to-deposit ratio to 96%.

• Loan growth slowed due to a $19 million C&I loan paydown and overall soft demand, with commercial growth strongest in Houston, New Orleans, and Lafayette.

• Celebrated 115 years of operations, with a strong presence across Southern Louisiana, Western Mississippi, and Houston.

Financial highlights

• Net interest income for Q3 2024 was $30.4 million, up 3% from Q2 2024 and 3% year-over-year.

• Net interest margin for Q3 2024 was 3.71%, up from 3.66% in Q2 2024, but down 4 bps year-over-year.

• Noninterest income was $3.7 million, down 2% sequentially and 16.1% year-over-year; noninterest expense was $22.3 million, up 2% sequentially and 4.3% year-over-year.

• Book value per share increased to $48.75; tangible book value per share rose to $38.17.

• Dividend of $0.26 per share declared, up 4% and payable in November 2024.

Outlook and guidance

• 2024 loan growth expected at the lower end of 4%-6% guidance due to continued soft demand.

• Management anticipates stabilization or improvement in NIM if rate cuts are gradual; rapid cuts could temporarily pressure NIM.

• Core noninterest expenses projected between $22 million and $22.5 million for the next two quarters; noninterest income expected between $3.6 million and $3.8 million.

• Management highlights strong capital position, capacity for growth, and sees market disruption as an opportunity for disciplined acquisitions.

• Forward-looking statements note risks from economic activity, interest rates, and regulatory changes.