Home Bancorp Q2 net income rises, dividend up 7%

Overview

• Home Bancorp Q2 net income rises to $11.3 mln, diluted EPS at $1.45

• Company's net interest income grows 5% qtr/qtr

• Co increases quarterly dividend by 7%

Outlook

• Company anticipates maintaining strong capital and liquidity for future growth

• Home Bancorp expects stable deposit and funding costs to continue

• Company sees no anticipated losses despite increase in nonperforming loans

Result Drivers

• LOAN GROWTH - Co reports loan growth, primarily in commercial real estate, offset by declines in construction and land loans

• DEPOSIT STABILITY - Stable deposit and funding costs contributed to increased net interest margin, per CEO John W. Bordelon

• NONPERFORMING ASSETS - Increase in nonperforming assets due to four loan relationships, which were moved to nonaccrual status in Q2

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 $51.75, about 8.4% below its July 18 closing price of $56.08

• The stock recently traded at 11 times the next 12-month earnings vs. a P/E of 9 three months ago

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