Home Bancorp (HBCP) Financials

Home Bancorp (NASDAQ: HBCP) has demonstrated consistent growth in net interest income over the last four years, reflecting strong earning assets primarily from loans and leases. In Q4 2024, net interest income reached approximately $31.6 million, up from about $29.0 million in Q4 2023 and significantly higher than the $33.3 million reported in Q4 2022. The growth in interest income is supported by increased loans and leases interest income, rising to $43.9 million in Q4 2024 compared to $39.8 million in Q4 2023.

Non-interest income showed relative stability, with other service charges holding steady around the $3.2 million mark quarterly. Capital gains on investments have been modest and inconsistent but did contribute positively throughout the periods.

Expenses have increased steadily, particularly salaries and employee benefits, which grew from approximately $11.4 million in Q4 2023 to $13.3 million in Q4 2024. Net occupancy and equipment expenses also increased, which may be indicative of branch expansion or upgraded facilities.

The provision for credit losses remains relatively low and stable, suggesting effective risk management and credit quality maintenance.

Looking at profitability, quarterly net income attributable to common shareholders grew from roughly $9.3 million in Q4 2023 to $9.7 million in Q4 2024, leading to a basic earnings per share (EPS) increase from $1.15 to $1.22 over the same period, reflecting steady earnings growth despite a slightly higher share count.

Cash flow analysis shows that the company consistently generates positive net cash from operating activities, indicating healthy core business operations. However, investing activities typically reflect significant outflows due to heavy purchases of investment securities, offset partially by sales and maturities.

Financing activities fluctuate, with notable issuance and repayment of debt balancing each other, accompanied by steady dividend payments and modest share repurchases.

The balance sheet shows steady asset growth, with total assets increasing from approximately $3.17 billion in Q3 2022 to $3.44 billion by Q3 2024, primarily driven by a growing loan portfolio. Deposits have increased accordingly, supporting asset growth, while long-term debt levels have fluctuated but remain manageable relative to equity.

• Consistent growth in net interest income driven by increased loans and leases interest income.
• Stable non-interest income with steady service charge revenues.
• Improving net income and earnings per share over the last four years.
• Effective credit risk management as seen in low and stable provision for credit losses.
• Positive net cash flow from operating activities demonstrating solid business operations.
• Growing asset base supported by increasing loans and deposits.
• Fluctuations in investing cash flows due to sizeable purchase and sale of investment securities.
• Issuance and repayment of debt are significant but somewhat balanced, indicating active capital structure management.
• Modest but consistent share repurchases and dividend payments suggest shareholder returns are a priority.
• Rising non-interest expenses, especially salaries and occupancy costs, which may pressure margins if not managed.