Home Bancorp Q3 net income, EPS fall from prior quarter on deposit pricing pressure

Overview

• US regional bank's Q3 net income and EPS declined from the prior quarter

• Net interest income remained essentially stable compared to the previous quarter

• Nonperforming assets rose due to loans moved to nonaccrual status

Outlook

• Company says it remains focused on protecting capital and preserving liquidity

• Company does not anticipate sizable losses from recently identified credit issues

Result Drivers

• DEPOSIT COSTS - Co said continued deposit pricing pressure weighed on net interest margin and earnings

• NONACCRUAL LOANS - Co attributed rise in nonperforming assets to six loan relationships moved to nonaccrual status

• BALANCE SHEET MANAGEMENT - Co said active balance sheet management partially offset impact of credit issues and higher funding costs

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 1 "strong buy" or "buy", 3 "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 $72.50, about 10% above its October 16 closing price of $65.90

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

Reuters Recommended Reads

• Oct 19 - Washington Trust Bancorp Q3 net income rises sequentially on higher net interest income

• Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

• Oct 19 - Peoples Bancorp of North Carolina Q3 net earnings rise on loan growth

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)