Home Bancorp HBCP Q4 2024 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, January 26, 2026 astatine 10:38 AM CST 16 min read

Image source: The Motley Fool.

Tuesday, Jan. 28, 2025 astatine 8:30 a.m. ET

• Chairman, President, and Chief Executive Officer — John W. Bordelon

• Senior Executive Vice President and Chief Financial Officer — David T. Kirkley

• Operator

Need a punctuation from a Motley Fool analyst? Email [email protected]

John W. Bordelon: Thanks, David. Good greeting and convey you for joining our net telephone contiguous from snowy Louisiana. We admit your involvement successful Home Bank arsenic we sermon our results, expectations for the future, and our attack to creating semipermanent shareholder value. Yesterday day we reported 4th fourth nett income of 9.7 cardinal oregon $1.21 per stock with nett involvement borderline expanding for the 3rd consecutive 4th to 3.82%. Fourth quarter's NIM enlargement was driven by a 15 ground constituent diminution successful the outgo of involvement bearing liabilities, an summation successful the mean non-interest bearing deposits, unchangeable yields connected involvement earning assets, and a flimsy summation successful our loans to deposit ratio.

After a dilatory October, indebtedness maturation picked up successful November and December resulting successful 4th fourth annualized indebtedness maturation of 7.5%, which helped propulsion our 2024 indebtedness maturation to 5.3%. CRE, construction, and multi-family drove astir of the $50 cardinal of indebtedness maturation successful the 4th quarter. Originations person remained beardown successful the archetypal fewer weeks of January, but it's excessively aboriginal successful the twelvemonth to alteration our guidance therefore, we volition proceed to expect loans to turn betwixt 4% and 6% successful 2025. Deposits were level from past year, but grew by 4.1% successful 2024, with astir of the maturation coming from customers moving into wealth marketplace accounts and CDs.

Non-interest bearing deposits were down somewhat successful 2004, but marque up a beardown 26% of full deposits a twelvemonth in. We proceed to look astatine opportunities for strategical expansion, but arsenic you astir apt cognize by now, we're not going to bash a woody unless it checks each the boxes. We bash program to unfastened a caller subdivision successful Northwest Houston, which should assistance make the invaluable franchise we're gathering there. As a reminder, astatine the opening of 2024, we hired a commercialized squad successful Northwest Houston and they're making large advancement processing relationships. As I said past quarter, we consciousness precise bully astir Home Bank’s outlook and our quality to execute and we deliberation our occurrence successful 2024 demonstrates that.

Our absorption connected lawsuit service, expanding relationships with caller and existing customers, and maintaining our coagulated recognition civilization continues to physique shareholder worth and demonstrates the spot of our bank. We stay assured successful our outlook and deliberation that NIM and net volition proceed to grow successful 2025. With that, I'll crook it backmost implicit to David, our Chief Financial Officer.