Home Bancorp Q4 net income down 8% from previous quarter

Overview

• U.S. bank's Q4 net income fell 8% from Q3, with EPS at $1.46

• Net interest margin decreased to 4.06% due to lower loan yield

• Nonperforming assets rose 17% due to loans on nonaccrual status

Outlook

• Company anticipates positive impact on NIM from repricing of Certificates of Deposit

• Home Bancorp did not provide specific future guidance

Result Drivers

• LOAN GROWTH - Commercial and industrial loans were a primary driver of loan growth in Q4, contributing to an overall increase in loan production

• CORE DEPOSITS - Core deposits increased by $24.5 mln, or 1%, during Q4, supporting the company's financial position

• NIM DECLINE - Net interest margin decreased due to lower yield on interest-earning assets, partially offset by lower funding cost

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Home Bancorp Inc is $61.50, about 2% above its January 23 closing price of $60.32

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nPn98vNZra

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