LAFAYETTE, La. - Home Bancorp , Inc. (NASDAQ:HBCP), the parent company of Home Bank, N.A., disclosed a rise in net income and a dividend increase for the third quarter of 2024. The company reported a net income of $9.4 million, or $1.18 per diluted common share, marking an increase from the previous quarter's $8.1 million, or $1.02 per diluted common share.
The company's loan portfolio showed a modest uptick, with total loans reaching $2.7 billion, a slight increment from the second quarter. Deposit growth continued its positive trend, with a notable increase to $2.8 billion. The net interest margin (NIM) also improved to 3.71%, reflecting a strong performance in this area.
Nonperforming assets saw a slight increase to $18.4 million, or 0.53% of total assets, mainly due to two loan relationships moving to nonaccrual status. The provision for loan losses was substantially lower at $140,000 compared to the previous quarter's $1.3 million. Net loan charge-offs decreased to $74,000.
The investment securities portfolio of the company grew to $421.8 million, with a reduction in the net unrealized loss position. The effective duration of the investment securities portfolio was reported at 3.7 years.
In terms of capital and liquidity, shareholders' equity rose to $393.5 million, an increase attributed to the quarter's earnings and a decrease in the accumulated other comprehensive loss on available for sale investment securities. The Tier 1 leverage capital and total risk-based capital ratios showed a slight improvement.
The board of directors declared a quarterly cash dividend of $0.26 per share, which represents a 4% increase from the previous dividend. The company also continued its share repurchase program, buying back shares at an average price of $38.50.
A conference call to discuss the third quarter results is scheduled, with details provided for analysts, investors, and interested parties to join.
This financial overview is based on a press release statement from Home Bancorp, Inc. and reflects a summary of the company's performance for the third quarter of 2024.
In other recent news, Home Bancorp reported its second-quarter results, posting a net income of $8.1 million, equivalent to $1.02 per share. The company noted an uptick in the net interest margin, a reduction in non-performing loans, and a steady increase in both non-interest income and expenses. This recent development also highlighted a growth in core deposits, particularly in the Houston market.
Home Bancorp also revealed an anticipated loan growth between 4% and 6% for the year, with $39.7 million added in the second quarter. The company also managed to repurchase approximately 77,000 shares during the quarter. These developments point to a cautiously optimistic outlook for Home Bancorp, with the company expecting steady growth in the upcoming months.
The company's management remains confident about the economy and credit conditions improving in a lower rate environment. The company's recent performance and strategic approach to growth and risk management suggest a focus on maintaining a balance between loan and deposit growth while managing expenses and capitalizing on market opportunities.
InvestingPro Insights
Building on Home Bancorp, Inc.'s (NASDAQ:HBCP) positive third-quarter results, recent data from InvestingPro provides additional context to the company's financial health and market position.
Home Bancorp's market capitalization stands at $363.12 million, reflecting its position as a mid-sized regional bank. The company's P/E ratio of 9.74 suggests that it may be undervalued compared to industry peers, aligning with the reported increase in net income and dividend.
InvestingPro Tips highlight that Home Bancorp has raised its dividend for 10 consecutive years, a testament to its consistent financial performance and commitment to shareholder returns. This track record supports the recent 4% dividend increase announced in the earnings report.
The company's profitability over the last twelve months, as noted by InvestingPro, is consistent with the positive net income figures reported for Q3 2024. However, investors should be aware that net income is expected to drop this year, which could impact future dividend growth.
Home Bancorp's stock is trading near its 52-week high, with a significant price uptick of 33.51% over the last six months. This performance aligns with the company's improved financial metrics, including the enhanced net interest margin and deposit growth mentioned in the earnings report.
For investors seeking a more comprehensive analysis, InvestingPro offers 8 additional tips for Home Bancorp, providing a deeper understanding of the company's financial position and market outlook.
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