StockNews.AI
HFBL
StockNews.AI
110 days

HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025

1. Net income rose slightly to $748,000 for Q1 2025. 2. Earnings per share remained flat at $0.24 for Q1 2025. 3. Total assets dropped 2.8% from June 2024 to March 2025. 4. Non-performing assets increased to $3.0 million, indicating rising credit issues. 5. Book value per share increased to $17.55, signaling positive shareholder equity.

22m saved
Insight
Article

FAQ

Why Neutral?

The minor uptick in quarterly income contrasts with overall asset decline, suggesting mixed signals for future profitability.

How important is it?

Current financial metrics, including asset quality and earnings performance, directly impact HFBL's valuation and investor confidence.

Why Short Term?

Recent income improvement and rising non-performing assets will influence near-term investor sentiment.

Related Companies

CFRFULTBANC
Shreveport, Louisiana, May 01, 2025 (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 March 31, 2025, of $748,000 compared to net income of $732,000 reported for the three months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.24 for the three months ended March 31, 2025 and for the three months ended March 31, 2024. The Company reported net income of $2.7 million for the nine months ended March 31, 2025, compared to $3.0 million for the nine months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.88 for the nine months ended March 31, 2025 compared to $0.97 and $0.95, respectively, for the nine months ended March 31, 2024.  The Company reported the following highlights during the nine months ended March 31, 2025:  ● Book value per share increased to $17.55 at March 31, 2025 from $16.80 at June 30, 2024. ● There were no advances from the FHLB at March 31, 2025 or June 30, 2024. ● Other borrowings totaled $4.0 million at March 31, 2025 compared to $7.0 million at June 30, 2024. The increase in net income for the three months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from an increase of $270,000, or 6.1%, in net interest income, an increase of $32,000, or 6.3%, in non-interest income, and a decrease of $5,000, or 45.5%, in the provision for credit losses, partially offset by an increase of $260,000, or 6.5%, in non-interest expense and an increase of $31,000, or 17.6%, in the provision for income taxes. The increase in net interest income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $735,000, or 21.1%, in total interest expense, partially offset by a decrease of $465,000, or 5.9%, in total interest income. The Company’s average interest rate spread was 2.66% for the three months ended March 31, 2025, compared to 2.16% for the three months ended March 31, 2024. The Company’s net interest margin was 3.33% for the three months ended March 31, 2025, compared to 2.89% for the three months ended March 31, 2024. The decrease in net income for the nine months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from a decrease of $891,000, or 6.1%, in net interest income and an increase of $102,000, or 35.2%, in the provision for income taxes, partially offset by a decrease of $331,000, or 2.7%, in non-interest expense, an increase of $248,000, or 23.0%, in non-interest income, and an increase of $167,000 in the recovery of credit losses. The decrease in net interest income for the nine months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $1.2 million, or 5.1%, in total interest income, partially offset by a decrease of $329,000, or 3.5%, in total interest expense. The Company’s average interest rate spread was 2.44% for the nine months ended March 31, 2025, compared to 2.46% for the nine months ended March 31, 2024. The Company’s net interest margin was 3.14% for the nine months ended March 31, 2025, and the nine months ended March 31, 2024. The following tables set 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 March 31,   2025  2024   AverageBalance  AverageYield/Rate  AverageBalance  AverageYield/Rate   (Dollars in thousands) Interest-earning assets:                Loans receivable $459,828   5.94% $504,918   5.80%Investment securities  95,706   2.44   104,646   2.21%Interest-earning deposits  14,513   3.05   3,607   3.79%Total interest-earning assets $570,047   5.28% $613,171   5.18%                 Interest-bearing liabilities:                Savings accounts $94,375   1.75% $69,178   0.62%NOW accounts  69,562   1.15   68,170   0.58%Money market accounts  75,882   2.01   89,313   2.60%Certificates of deposit  182,721   3.76   222,534   4.36%Total interest-bearing deposits  422,540   2.57   449,195   2.86%Other bank borrowings  4,000   7.71   9,448   8.73%FHLB advances  -   -   5,956   5.87%Total interest-bearing liabilities $426,540   2.62% $464,599   3.02%   For the Nine months ended March 31,   2025  2024   AverageBalance  AverageYield/Rate  AverageBalance  AverageYield/Rate   (Dollars in thousands) Interest-earning assets:                Loans receivable $460,972   5.90% $503,664   5.80%Investment securities  96,395   2.24   109,255   2.38%Interest-earning deposits  23,326   4.45   5,060   3.55 Total interest-earning assets $580,693   5.24% $617,979   5.18%                 Interest-bearing liabilities:                Savings accounts $89,171   1.69% $73,676   0.46%NOW accounts  71,022   1.17   67,145   0.47%Money market accounts  76,828   2.20   98,021   2.44%Certificates of deposit  191,936   4.04   209,985   4.05%Total interest-bearing deposits  428,957   2.75   448,827   2.58%Other bank borrowings  4,832   7.55   9,100   8.57%FHLB advances  -   -   4,151   5.77%Total interest-bearing liabilities $433,789   2.80% $462,078   2.72% The $32,000 increase in non-interest income for the three months ended March 31, 2025, compared to the prior year quarterly period, was primarily due to an increase of $27,000 in other non-interest income, an increase of $19,000 in service charges on deposit accounts, an increase of $11,000 in gain on sale of loans, and an increase of $1,000 in income on bank owned life insurance, partially offset by a decrease of $26,000 in gain on sale of securities. The $248,000 increase in non-interest income for the nine months ended March 31, 2025 compared to the prior year nine-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $115,000 in other non-interest income, an increase of $14,000 in service charges on deposit accounts, and an increase of $5,000 in income from bank owned life insurance, partially offset by an increase of $32,000 in loss on sale of securities, and a decrease of $3,000 in gain on sale of loans. The $260,000 increase in non-interest expense for the three months ended March 31, 2025, compared to the same period in 2024, is primarily attributable to increases of $414,000 in data processing expense, $77,000 in occupancy and equipment expense, $67,000 in audit and examination fees, $49,000 in professional fees, $40,000 in other non-interest expense, $15,000 in loan and collection expense, and $12,000 in deposit insurance premium expense. The increases were partially offset by decreases of $317,000 in compensation and benefits expense, $55,000 in advertising expense, $33,000 in franchise and bank shares tax expense, and $9,000 in amortization of core deposit intangible expense. The $331,000 decrease in non-interest expense for the nine months ended March 31, 2025, compared to the same nine-month period in 2024, is primarily attributable to decreases of $470,000 in compensation and benefits expense, $184,000 in franchise and bank shares tax expense, $179,000 in advertising expense, $65,000 in other non-interest expense, $47,000 in professional fees, $42,000 in amortization of core deposit intangible expense, $22,000 in deposit insurance premium expense, and $19,000 in loan and collection expense. The decreases were partially offset by increases of $594,000 in data processing expense, $86,000 in occupancy and equipment expense, and $17,000 in audit and examination fees. The increase in data processing expense resulted from a billing discrepancy with our core processor, which had failed to issue invoices for certain services dating back to December 2022. Upon discovery of the issue, we negotiated a discounted settlement to resolve the outstanding invoices. Total assets decreased $17.9 million, or 2.8%, from $637.5 million at June 30, 2024 to $619.6 million at March 31, 2025. The decrease in assets was comprised of decreases in net loans receivable of $12.6 million, or 2.7%, from $470.9 million at June 30, 2024 to $458.3 million at March 31, 2025, cash and cash equivalents of $4.5 million, or 12.9%, from $34.9 million at June 30, 2024 to $30.4 million at March 31, 2025, premises and equipment of $736,000, or 4.0%, from $18.3 million at June 30, 2024 to $17.6 million at March 31, 2025, loans-held-for-sale of $734,000, or 42.4%, from $1.7 million at June 30, 2024 to $999,000 at March 31, 2025, core deposit intangible of $216,000, or 18.0%, from $1.2 million at June 30, 2024 to $983,000 at March 31, 2025, investment securities of $102,000, or 0.1%, from $96.0 million at June 30, 2024 to $95.9 million at March 31, 2025, and partially offset by increases in real estate owned of $482,000, or 115.3% from $418,000 at June 30, 2024 to $900,000 at March 31, 2025, deferred tax asset of $186,000, or 15.7%, from $1.2 million at June 30, 2024 to $1.4 million at March 31, 2025, other assets of $178,000, or 13.2%, from $1.3 million at June 30, 2024 to $1.5 million at March 31, 2025, bank owned life insurance of $87,000, or 1.3%, from $6.8 million at June 30, 2024 to $6.9 million at March 31, 2025, and accrued interest receivable of $27,000, or 1.5%, from $1.78 million at June 30, 2024 to $1.8 million at March 31, 2025. Total liabilities decreased $19.8 million, or 3.4%, from $584.7 million at June 30, 2024 to $564.9 million at March 31, 2025. The decrease in liabilities was comprised of decreases in total deposits of $17.2 million, or 3.0%, from $574.0 million at June 30, 2024 to $556.8 million at March 31, 2025, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at March 31, 2025, advances from borrowers for taxes and insurance of $137,000, or 26.3%, from $521,000 at June 30, 2024 to $384,000 at March 31, 2025, and partially offset by an increase in other accrued expenses and liabilities of $577,000, or 18.1%, from $3.2 million at June 30, 2024 to $3.8 million at March 31, 2025. The decrease in deposits resulted from decreases in certificates of deposit of $32.5 million, or 15.1%, from $214.9 million at June 30, 2024 to $182.4 million at March 31, 2025, money market deposits of $5.7 million, or 6.6%, from $85.5 million at June 30, 2024 to $79.9 million at March 31, 2025, and non-interest deposits of $535,000, or 0.4%, from $130.3 million at June 30, 2024 to $129.8 million at March 31, 2025, partially offset by increases in savings deposits of $19.3 million, or 25.2%, from $76.6 million at June 30, 2024 to $96.0 million at March 31, 2025, and NOW accounts of $2.1 million, or 3.1%, from $66.6 million at June 30, 2024 to $68.7 million at March 31, 2025. The Company had no balances in brokered deposits at March 31, 2025 or June 30, 2024. At March 31, 2025, the Company had $3.0 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 $1.9 million of non-performing assets at June 30, 2024, consisting of six one-to-four family residential loans, six home equity loans, two commercial non-real estate loans, two commercial real-estate loans, and one consumer loan at March 31, 2025, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans, and three single-family residences in other real estate owned at June 30, 2024. At March 31, 2025 the Company had nine one-to-four family residential loans, six home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and two consumer loans classified as substandard, compared to six one-to-four family residential loans, five commercial non-real-estate loans, four home equity loans and one consumer loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at March 31, 2025 or June 30, 2024. Shareholders’ equity increased $1.9 million, or 3.6%, from $52.8 million at June 30, 2024 to $54.7 million at March 31, 2025. The increase in shareholders’ equity was comprised of net income for the nine-month period of $2.7 million, a decrease in the Company’s accumulated other comprehensive loss of $559,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $370,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by dividends paid totaling $1.2 million, and stock repurchases of $517,000. 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 Company’s loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees. HOME FEDERAL BANCORP, INC. OF LOUISIANACONSOLIDATED BALANCE SHEETS(In thousands except share and per share data)            March 31, 2025  June 30, 2024   (Unaudited)     ASSETS                 Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $22,197 and $25,505 at March 31, 2025 and June 30, 2024, Respectively) $30,439  $34,948 Securities Available-for-Sale (amortized cost March 31, 2025: $34,751; June 30, 2024: $30,348, Respectively)  32,149   27,037 Securities Held-to-Maturity (fair value March 31, 2025: $52,428; June 30, 2024: $54,450, Respectively)  63,066   67,302 Other Securities  636   1,614 Loans Held-for-Sale  999   1,733 Loans Receivable, Net of Allowance for Credit Losses (March 31, 2025:  $4,632; June 30, 2024: $4,574, Respectively)  458,301   470,852 Accrued Interest Receivable  1,802   1,775 Premises and Equipment, Net  17,567   18,303 Bank Owned Life Insurance  6,897   6,810 Goodwill  2,990   2,990 Core Deposit Intangible  983   1,199 Deferred Tax Asset  1,367   1,181 Real Estate Owned  900   418 Other Assets  1,528   1,350          Total Assets $619,624  $637,512          LIABILITIES AND SHAREHOLDERS’ EQUITY                 LIABILITIES                 Deposits:        Non-interest bearing $129,799  $130,334 Interest-bearing  426,964   443,673 Total Deposits  556,763   574,007 Advances from Borrowers for Taxes and Insurance  384   521 Other Borrowings  4,000   7,000 Other Accrued Expenses and Liabilities  3,758   3,181          Total Liabilities  564,905   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: 3,118,764 and 3,142,168 Shares Issued and Outstanding at March 31, 2025 and June 30, 2024, Respectively  32   32 Additional Paid-in Capital  42,055   41,739 Unearned ESOP Stock  (336)  (408)Retained Earnings  15,024   14,055 Accumulated Other Comprehensive Loss  (2,056)  (2,615)         Total Shareholders’ Equity  54,719   52,803          TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY $619,624  $637,512  HOME FEDERAL BANCORP, INC. OF LOUISIANACONSOLIDATED STATEMENTS OF INCOME(In thousands, except per share data)(Unaudited)   Three Months Ended  Nine months ended   March 31,  March 31,   2025  2024  2025  2024 Interest income                Loans, including fees $6,740  $7,281  $20,426  $21,952 Investment securities  83   124   213   573 Mortgage-backed securities  493   451   1,406   1,384 Other interest-earning assets  109   34   779   135 Total interest income  7,425   7,890   22,824   24,044 Interest expense                Deposits  2,675   3,194   8,851   8,688 Federal Home Loan Bank borrowings  -   87   -   180 Other bank borrowings  76   205   274   586 Total interest expense  2,751   3,486   9,125   9,454 Net interest income  4,674   4,404   13,699   14,590                  Provision for (recovery of) credit losses  6   11   (172)  (5)Net interest income after provision for credit losses  4,668   4,393   13,871   14,595                  Non-interest income                Gain on sale of loans  80   69   181   184 Loss on sale of real estate  -   -   (266)  (415)Gain(Loss) on sale of securities  -   26   (6)  26 Income on Bank-Owned Life Insurance  29   28   87   82 Service charges on deposit accounts  382   363   1,165   1,151 Other income  47   20   165   50 Total non-interest income  538   506   1,326   1,078                                   Non-interest expense                Compensation and benefits  2,136   2,453   6,667   7,137 Occupancy and equipment  610   533   1,711   1,625 Data processing  553   139   1,107   513 Audit and examination fees  150   83   473   456 Franchise and bank shares tax  135   168   304   488 Advertising  22   77   123   302 Professional fees  145   96   396   443 Loan and collection  46   31   104   123 Amortization Core Deposit Intangible  70   79   216   258 Deposit insurance premium  102   90   267   289 Other expenses  282   242   729   794 Total non-interest expense  4,251   3,991   12,097   12,428 Income before income taxes  955   908   3,100   3,245 Provision for income tax expense  207   176   392   290                  NET INCOME $748  $732  $2,708  $2,955                  EARNINGS PER SHARE                Basic $0.24  $0.24  $0.88  $0.97 Diluted $0.24  $0.24  $0.88  $0.95    Three Months Ended  Nine months ended   March 31,  March 31,   2025  2024  2025  2024                  Selected Operating Ratios(1):                Average interest rate spread  2.66%  2.16%  2.44%  2.46%Net interest margin  3.33%  2.89%  3.14%  3.14%Return on average assets  0.50%  0.45%  0.58%  0.60%Return on average equity  5.59%  5.62%  6.85%  7.64%                 Asset Quality Ratios(2):                Non-performing assets as a percent of total assets  0.49%  0.37%  0.49%  0.37%Allowance for credit losses as a percent of non-performing loans  215.44%  203.11%  215.44%  203.11%Allowance for credit losses as a percent of total loans receivable  1.00%  0.97%  1.00%  0.97%                 Per Share Data:                Shares outstanding at period end  3,118,764   3,145,236   3,118,764   3,145,236 Weighted average shares outstanding:                Basic  3,061,928   3,047,335   3,062,511   3,039,907 Diluted  3,087,624   3,091,011   3,081,233   3,095,817 Book value per share at period end $17.55  $16.71  $17.55  $16.71   ______________                (1) Ratios for the three and nine month periods are annualized.                (2) Asset quality ratios are end of period ratios.                

Related News