Home Bancorp extends executive employment agreements

Home Bancorp , Inc. (NASDAQ:HBCP), a Louisiana-based savings institution with a market capitalization of $392.72 million, announced on Monday the extension of employment agreements for top executives and the establishment of new ones for other senior officers, as detailed in a recent 8-K filing with the Securities and Exchange Commission. According to InvestingPro data, the company has demonstrated strong financial health with a "GOOD" overall rating, trading at a P/E ratio of 10.23.

The company’s board of directors has agreed to extend the current employment agreement with John W. Bordelon, President and CEO, until May 20, 2028. Additionally, the contracts for Darren E. Guidry and David T. Kirkley have been extended to May 20, 2027. These amendments ensure the continued leadership of the executives for the next several years, building on the company’s impressive track record of raising dividends for 11 consecutive years and delivering a robust 36.19% return over the past year.

In a significant move, Home Bank, a subsidiary of Home Bancorp, has also entered into employment agreements with three of its senior executive vice presidents: Mark C. Herpin, Chief Operations Officer; Natalie B. Lemoine, Chief Administrative Officer; and John J. Zollinger IV, Chief Banking Officer. Their contracts are set to expire on May 20, 2027, with the board reviewing the possibility of renewal or extension on an annual basis.

The agreements detail that if the executives are terminated without cause or choose to leave for "good reason," they are entitled to severance equal to their base salary and continued participation in certain benefit plans. In the event of termination following a change in control, the severance would include two times the sum of their base salary and previous year’s bonus, along with additional benefits.

The filing also outlines the terms regarding termination for cause, disability, death, or retirement, stipulating that the executives would not be entitled to compensation or benefits beyond the termination date. Any termination payments that are considered "parachute payments" will be reduced to avoid non-deductibility for federal income tax purposes.

Home Bancorp has included the full amendments and agreements as exhibits in the 8-K filing, offering transparency and complete details to the public. The company has made no other changes to the existing employment agreements beyond the extensions and new contracts.

This move comes as Home Bancorp continues to solidify its leadership structure, ensuring stability at the executive level as it progresses with its business strategy. The information in this article is based on the aforementioned SEC filing. InvestingPro analysis suggests potential upside from current levels, with additional insights and detailed financial metrics available in the comprehensive Pro Research Report, one of 1,400+ deep-dive analyses available to subscribers.

In other recent news, Home Bancorp Inc. reported impressive financial results for the first quarter of 2025, surpassing earnings expectations. The company achieved an earnings per share of $1.37, significantly above the forecasted $1.15, while revenue reached $35.76 million, exceeding the anticipated $34.65 million. Additionally, Home Bancorp held its Annual Meeting of Shareholders, where Ann Forte Trappey and Donald W. Washington were elected to three-year terms on the Board of Directors. Shareholders also approved the compensation of the company’s named executive officers and ratified the appointment of Wipfli LLP as the independent registered public accounting firm for the fiscal year ending December 31, 2025. The company emphasized that all proposals were adopted during the meeting. In terms of market activity, Home Bancorp’s strong earnings report contributed to a positive investor sentiment. Analysts from firms like Raymond (NSE:RYMD) James and Janney Montgomery have been closely monitoring the company’s financial health and future prospects.

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