Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three Months Ended September 30, 2024

GlobeNewswire Inc.

October 29, 2024 8:30PM GMT

Shreveport, Oct. 29, 2024 (GLOBE NEWSWIRE) -- Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the three months ended September 30, 2024, of $941,000 compared to net income of $1.2 million reported for the three months ended September 30, 2023. The Company’s basic and diluted earnings per share were $0.31 for the three months ended September 30, 2024, compared to basic and diluted earnings per share of $0.40 and $0.39, respectively, for the three months ended September 30, 2023.

The decrease in net income for the three months ended September 30, 2024, compared to the same period in 2023, resulted from a decrease in net interest income of $857,000, or 16.2%, and a decrease in non-interest income of $134,000, or 30.9%, partially offset by a decrease in non-interest expense of $177,000, or 4.2%, a decrease in provision for income taxes of $312,000, or 100.6%, a decrease in the provision of credit losses of $223,000. The decrease in net interest income for the three months ended September 30, 2024, compared to the same period in 2023, resulted from an increase in total interest expense of $524,000, or 18.8%, and a decrease in total interest income of $333,000, or 4.1%.  The Company’s average interest rate spread was 2.23% for the three months ended September 30, 2024, compared to 2.68% for the three months ended September 30, 2023. The Company’s net interest margin was 2.98% for the three months ended September 30, 2024, compared to 3.37% for the three months ended September 30, 2023.

The following table sets forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

 

 

For the Three Months Ended September 30,

 

 

 

2024

 

 

2023

 

 

 

AverageBalance

 

 

AverageYield/Rate

 

 

AverageBalance

 

 

AverageYield/Rate

 

 

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

466,170

 

 

 

5.87

%

 

$

498,242

 

 

 

5.79

%

Investment securities

 

 

96,749

 

 

 

2.09

 

 

 

113,584

 

 

 

2.18

 

Interest-earning deposits

 

 

25,617

 

 

 

5.20

 

 

 

10,066

 

 

 

6.98

 

Total interest-earning assets

 

$

588,536

 

 

 

5.22

%

 

$

621,892

 

 

 

5.15

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

82,556

 

 

 

1.61

%

 

$

78,572

 

 

 

0.38

%

NOW accounts

 

 

72,787

 

 

 

1.10

 

 

 

55,900

 

 

 

0.48

 

Money market accounts

 

 

75,216

 

 

 

2.29

 

 

 

108,891

 

 

 

2.26

 

Certificates of deposit

 

 

204,019

 

 

 

4.30

 

 

 

194,785

 

 

 

3.73

 

Total interest-bearing deposits 

 

 

434,578

 

 

 

2.92

 

 

 

438,148

 

 

 

2.47

 

Other bank borrowings

 

 

5,989

 

 

 

7.75

 

 

 

8,654

 

 

 

8.39

 

FHLB advances

 

 

--

 

 

 

--

 

 

 

1,138

 

 

 

5.23

 

Total interest-bearing liabilities

 

$

440,567

 

 

 

2.98

%

 

$

447,940

 

 

 

2.47

%

The $134,000 decrease in non-interest income for the three months ended September 30, 2024, compared to the same period in 2023, resulted from an increase in loss on sale of real estate of $220,000, partially offset by an increase in gain on sale of loans of $58,000, an increase in other non-interest income of $26,000, and an increase in income on bank owned life insurance of $2,000.

The $177,000 decrease in non-interest expense for the three months ended September 30, 2024, compared to the same period in 2023, resulted from decreases in advertising expense of $86,000, compensation and benefits expense of $54,000, professional fees of $43,000, loan and collection expense of $32,000, data processing expense of $26,000, amortization of core deposit intangible expense of $20,000, and deposit insurance premium expense of $1,000, partially offset by increases in audit and examination fees of $30,000, other non-interest expense of $28,000, occupancy and equipment expense of $15,000, and franchise and bank shares tax expense of $12,000.

Total assets decreased $9.1 million, or 1.4%, from $637.5 million at June 30, 2024 to $628.4 million at September 30, 2024. The decrease in assets was comprised of decreases in net loans receivable of $16.9 million, or 3.6%, from $470.9 million at June 30, 2024 to $454.0 million at September 30, 2024, real estate owned of $296,000, or 70.8% from $418,000 at June 30, 2024 to $122,000 at September 30, 2024, premises and equipment of $238,000, or 1.3%, from $18.3 million at June 30, 2024 to $18.1 million at September 30, 2024, core deposit intangible of $74,000, or 6.2%, from $1.2 million at June 30, 2024 to $1.1 million at September 30, 2024, and accrued interest receivable of $14,000, or 0.8%, from $1.78 million at June 30, 2024 to $1.76 million at September 30, 2024, partially offset by increases in cash and cash equivalents of $6.1 million, or 17.4%, from $34.9 million at June 30, 2024 to $41.0 million at September 30, 2024, investment securities of $1.4 million, or 1.5%, from $96.0 million at June 30, 2024 to $97.4 million at September 30, 2024, loans-held-for-sale of $535,000, or 30.9%, from $1.7 million at June 30, 2024 to $2.3 million at September 30, 2024, other assets of $224,000, or 16.6%, from $1.3 million at June 30, 2024 to $1.6 million at September 30, 2024, deferred tax asset of $29,000, or 2.5%, from $1.18 million at June 30, 2024 to $1.21 million at September 30, 2024, and bank owned life insurance of $29,000, or 0.4%, from $6.81 million at June 30, 2024 to $6.84 million at September 30, 2024. The increase in investment securities was primarily due to $4.0 million in security purchases and a $1.3 million reduction in unrealized losses on available for sale securities, partially offset by $3.5 million in principal payments. The increase in cash and cash equivalents from $34.9 million at June 30, 2024 to $41.0 million at September 30, 2024 was mainly due to decreases in loans receivable.

Total liabilities decreased $10.6 million, or 1.8%, from $584.7 million at June 30, 2024 to $574.1 million at September 30, 2024. The decrease in liabilities was comprised of decreases in total deposits of $9.4 million, or 1.6%, from $574.0 million at June 30, 2024 to $564.6 million at September 30, 2024, and other borrowings of $1.5 million, or 21.4%, from $7.0 million at June 30, 2024 to $5.5 million at September 30, 2024, partially offset by increases in other accrued expenses and liabilities of $252,000, or 7.9%, from $3.2 million at June 30, 2024 to $3.4 million at September 30, 2024, and advances from borrowers for taxes and insurance of $123,000, or 23.6%, from $521,000 at June 30, 2024 to $644,000 at September 30, 2024,. The decrease in deposits resulted from decreases in certificates of deposit of $17.5 million, or 8.2%, from $214.9 million at June 30, 2024 to $197.3 million at September 30, 2024, and money market deposits of $5.9 million, or 6.9%, from $85.5 million at June 30, 2024 to $79.6 million at September 30, 2024, partially offset by increases in savings deposits of $9.2 million, or 12.0%, from $76.6 million at June 30, 2024 to $85.8 million at September 30, 2024, non-interest deposits of $3.0 million, or 2.3%, from $130.3 million at June 30, 2024 to $133.3 million at September 30, 2024, and NOW accounts of $1.9 million, or 2.8%, from $66.6 million at June 30, 2024 to $68.5 million at September 30, 2024. The Company had no balances in brokered deposits at September 30, 2024 or June 30, 2024.

At September 30, 2024, the Company had $1.9 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $2.0 million on non-performing assets at June 30, 2024, consisting of two commercial non-real estate loans, five single-family residential loans, four home equity line-of-credit loans, and one single-family residence in other real estate owned at September 30, 2024, compared to five single-family residential loans, three commercial non-real estate loans, four home equity line-of-credit loans and three single-family residences in other real estate owned at June 30, 2024.  At September 30, 2024 the Company had five commercial non-real-estate loans, one commercial real-estate loan, six single family residential loans, four home-equity line-of-credit loans, and one auto loan classified as substandard, compared to six single family residential loans, five commercial non-real-estate loans, four home equity line-of-credit loans and one auto loan classified as substandard at June 30, 2024.  There were no loans classified as doubtful at September 30, 2024 or June 30, 2024.

Shareholders’ equity increased $1.5 million, or 2.8%, from $52.8 million at June 30, 2024 to $54.3 million at September 30, 2024. The increase in shareholders’ equity was comprised of net income for the three month period of $941,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $94,000, proceeds from the issuance of common stock from the exercise of stock options of $19,000, and a decrease in the Company’s accumulated other comprehensive loss of $1.0 million, partially offset by dividends paid totaling $409,000, and stock repurchases of $182,000.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

Statements contained in this news release which are not historical facts may be forward-looking statements as that term is defined in the Private Securities Litigation Reform Act of 1995.  Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts.  They often include words like believe, expect, anticipate, estimate, and intend, or future or conditional verbs such as will, would, should, could, or may.  We undertake no obligation to update any forward-looking statements.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Companys loans, investment and mortgage-backed securities portfolios; geographic concentration of the Companys business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Companys financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Companys operations, markets, products, services and fees.


HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands except share and per share data)

 

 

September 30, 2024

 

 

June 30, 2024

 

 

 

(Unaudited)

 

 

 

 

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $32,743 and $25,505 at September 30, 2024 and June 30, 2024, Respectively)

 

$

41,044

 

 

$

34,948

 

Securities Available-for-Sale (amortized cost September 30, 2024: $31,977; June 30, 2024: $30,348, Respectively)

 

 

29,934

 

 

 

27,037

 

Securities Held-to-Maturity (fair value September 30, 2024: $56,584; June 30, 2024: $54,450, Respectively)

 

 

65,800

 

 

 

67,302

 

Other Securities

 

 

1,633

 

 

 

1,614

 

Loans Held-for-Sale

 

 

2,268

 

 

 

1,733

 

Loans Receivable, Net of Allowance for Credit Losses (September 30, 2024: $4,703; June 30, 2024: $4,574, Respectively)

 

 

454,039

 

 

 

470,852

 

Accrued Interest Receivable

 

 

1,761

 

 

 

1,775

 

Premises and Equipment, Net

 

 

18,065

 

 

 

18,303

 

Bank Owned Life Insurance

 

 

6,839

 

 

 

6,810

 

Goodwill

 

 

2,990

 

 

 

2,990

 

Core Deposit Intangible

 

 

1,125

 

 

 

1,199

 

Deferred Tax Asset

 

 

1,210

 

 

 

1,181

 

Real Estate Owned

 

 

122

 

 

 

418

 

Other Assets

 

 

1,574

 

 

 

1,350

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

628,404

 

 

$

637,512

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

133,293

 

 

$

130,334

 

Interest-bearing

 

 

431,267

 

 

 

443,673

 

Total Deposits

 

 

564,560

 

 

 

574,007

 

Advances from Borrowers for Taxes and Insurance

 

 

644

 

 

 

521

 

Other Borrowings

 

 

5,500

 

 

 

7,000

 

Other Accrued Expenses and Liabilities

 

 

3,433

 

 

 

3,181

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

574,137

 

 

 

584,709

 

 

 

 

 

 

 

 

 

 

SHAREHOLDERS

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Preferred Stock - $0.01 Par Value; 10,000,000 Shares Authorized: None Issued and Outstanding

 

 

-

 

 

 

-

 

Common Stock - $0.01 Par Value; 40,000,000 Shares Authorized: 3,129,668 and 3,144,168 Shares Issued and Outstanding at September 30, 2024 and June 30, 2024, Respectively

 

 

32

 

 

 

32

 

Additional Paid-in Capital

 

 

41,822

 

 

 

41,739

 

Unearned ESOP Stock

 

 

(379

)

 

 

(408

)

Retained Earnings

 

 

14,406

 

 

 

14,055

 

Accumulated Other Comprehensive Loss

 

 

(1,614

)

 

 

(2,615

)

 

 

 

 

 

 

 

 

 

Total Shareholders

Equity

 

 

54,267

 

 

 

52,803

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS

’ 

EQUITY

 

$

628,404

 

 

$

637,512

 

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (In thousands except share and per share data)

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2024

 

 

2023

 

INTEREST INCOME

 

 

 

 

 

 

 

 

Loans, including fees

 

$

6,895

 

 

$

7,274

 

Investment securities

 

 

67

 

 

 

150

 

Mortgage-backed securities

 

 

443

 

 

 

473

 

Other interest-earning assets

 

 

336

 

 

 

177

 

Total interest income

 

 

7,741

 

 

 

8,074

 

 

 

 

 

 

 

 

 

 

INTEREST EXPENSE

 

 

 

 

 

 

 

 

Deposits

 

 

3,197

 

 

 

2,592

 

Federal Home Loan Bank borrowings

 

 

--

 

 

 

15

 

Other bank borrowings

 

 

117

 

 

 

183

 

Total interest expense

 

 

3,314

 

 

 

2,790

 

Net interest income

 

 

4,427

 

 

 

5,284

 

 

 

 

 

 

 

 

 

 

RECOVERY OF CREDIT LOSSES

 

 

(223

)

 

 

--

 

Net interest income after recovery of credit losses

 

 

4,650

 

 

 

5,284

 

 

 

 

 

 

 

 

 

 

NON-INTEREST INCOME

 

 

 

 

 

 

 

 

Gain on sale of loans

 

 

96

 

 

 

38

 

Loss on sale of real estate

 

 

(254

)

 

 

(34

)

Income on bank owned life insurance

 

 

28

 

 

 

26

 

Service charges on deposit accounts

 

 

391

 

 

 

391

 

Other income

 

 

39

 

 

 

13

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

 

300

 

 

 

434

 

 

 

 

 

 

 

 

 

 

NON-INTEREST EXPENSE

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

2,302

 

 

 

2,356

 

Occupancy and equipment

 

 

564

 

 

 

549

 

Data processing

 

 

219

 

 

 

245

 

Audit and examination fees

 

 

132

 

 

 

102

 

Franchise and bank shares tax

 

 

168

 

 

 

156

 

Advertising

 

 

57

 

 

 

143

 

Professional fees

 

 

117

 

 

 

160

 

Loan and collection

 

 

28

 

 

 

60

 

Amortization core deposit intangible

 

 

74

 

 

 

94

 

Deposit insurance premium

 

 

90

 

 

 

91

 

Other expenses

 

 

260

 

 

 

232

 

Total non-interest expense

 

 

4,011

 

 

 

4,188

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

939

 

 

 

1,530

 

PROVISION FOR INCOME TAX EXPENSE

 

 

(2

)

 

 

310

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

941

 

 

$

1,220

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

Basic

 

$

0.31

 

 

$

0.40

 

Diluted

 

$

0.31

 

 

$

0.39

 

 

 

Three Months EndedSeptember 30,

 

 

 

2024

 

 

2023

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios(1):

 

 

 

 

 

 

 

 

Average interest rate spread

 

 

2.23

%

 

 

2.68

%

Net interest margin

 

 

2.98

%

 

 

3.37

%

Return on average assets

 

 

0.59

%

 

 

0.73

%

Return on average equity

 

 

7.23

%

 

 

9.46

%

 

 

 

 

 

 

 

 

 

Asset Quality Ratios(2):

 

 

 

 

 

 

 

 

Non-performing assets as a percent of total assets

 

 

0.31

%

 

 

0.28

%

Allowance for credit losses as a percent of non-performing loans

 

 

258.46

%

 

 

403.96

%

Allowance for credit losses as a percent of total loans receivable

 

 

1.03

%

 

 

1.00

%

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

Shares outstanding at period end

 

 

3,129,668

 

 

 

3,133,351

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

3,058,286

 

 

 

3,028,597

 

Diluted

 

 

3,071,716

 

 

 

3,107,834

 

(1)     Ratios for the three-month period are annualized.

(2)     Asset quality ratios are end of period ratios.

CONTACT: James R. Barlow
Chairman of the Board, President and Chief Executive Officer
(318) 222-1145