HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2025

Rhea-AI Summary

Home Federal Bancorp (Nasdaq: HFBL) reported net income $1.599M for the quarter ended Sept 30, 2025 versus $941K a year earlier, with basic/diluted EPS of $0.53/$0.52 compared to $0.31. Key operational highlights:

• Book value per share rose to $18.46 (Sept 30, 2025) from $17.90 (June 30, 2025)
• Net interest margin of 3.63% vs 2.98% a year earlier (65 bps improvement)
• No wholesale funding: no brokered deposits or FHLB advances at June 30 or Sept 30, 2025
• Non-performing assets declined to $2.225M from $3.305M at June 30, 2025

Quarterly drivers included higher net interest income (+$834K, 18.8%), higher non-interest income (+$350K), lower non-interest expense (-$160K), and a higher provision for credit losses (+$266K).

Positive

• Net interest income +$834K (18.8%)
• Net interest margin improved by 65 bps to 3.63%
• Book value per share increased to $18.46
• No wholesale funding—zero brokered deposits or FHLB advances at Sept 30, 2025

Negative

• Provision for credit losses increased $266K (119.3%)
• Provision for income taxes increased $420K
• Data processing expense increased $117K due to past-billing settlement

Insights

Regional bank performance analyst

Quarterly results show clear earnings improvement, higher margins, and stronger asset quality versus prior year.

Net income rose to $1.599 million for the three months ended September 30, 2025, from $941,000 year-over-year, with basic and diluted EPS of $0.53 and $0.52 respectively. Key drivers include an 65%-basis uplift in net interest margin to 3.63%, an $834,000 increase in net interest income, a reduction in interest expense of $565,000, and a $350,000 rise in non-interest income largely due to lower loss on sale of real estate and higher loan sale gains.

Risks and dependencies are explicit and limited to disclosed items: the provision for credit losses increased by $266,000 relative to the prior year period (partly because the prior period included a $223,000 recovery), and data processing expense rose due to a settlement with the core processor. Asset quality moved positively with non-performing assets declining from $3.305 million at June 30, 2025 to $2.225 million at September 30, 2025, and there were no loans classified as doubtful at either date.

Concrete items to watch in the next 1–4 quarters include sustained net interest margin levels near 3.63%, the trend in provisions for credit losses given the prior recovery, the evolution of deposit mix (certificates of deposit increased while money market and savings decreased), and the bank’s claim of zero dependency on wholesale funding at both quarter-ends. These metrics will confirm whether the quarter represents a durable earnings improvement or a short-term gain driven by one-time items.

Shreveport, La, Oct. 23, 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 September 30, 2025, of $1.599 million compared to net income of $941,000 reported for the three months ended September 30, 2024. The Company’s basic and diluted earnings per share were $0.53 and $0.52, respectively, for the three months ended September 30, 2025 compared to $0.31 for the three months ended September 30, 2024.

    The Company reported the following highlights during the three months ended September 30, 2025:

        ■        Book value per share increased to $18.46 at September 30, 2025 from $17.90 at June 30, 2025.

        ■        $1.242 million reduction in losses on held-to-maturity securities since June 30, 2025, which equates to $0.40 per share.

        ■        Zero dependency on wholesale funding – no brokered deposits or FHLB advances at September 30, 2025 or June 30, 2025.

        ■        65 basis point increase to net interest margin compared to the same period in 2024.

    The increase in net income for the three months ended September 30, 2025, as compared to the same period in 2024, resulted from an increase of $834,000, or 18.8%, in net interest income, an increase of $350,000, or 116.7%, in non-interest income, a decrease of $160,000, or 4.0%, in non-interest expense, partially offset by an increase of $420,000 in the provision for income taxes, and an increase of $266,000, or 119.3%, in the provision for credit losses. The increase in net interest income for the three months ended September 30, 2025, as compared to the same period in 2024, resulted from a decrease of $565,000, or 17.0%, in total interest expense and an increase of $269,000, or 3.5%, in total interest income. The Company’s average interest rate spread was 2.99% for the three months ended September 30, 2025, compared to 2.23% for the three months ended September 30, 2024. The Company’s net interest margin was 3.63% for the three months ended September 30, 2025, compared to 2.98% for the three months ended September 30, 2024. The increase in the provision for credit losses was primarily due to a $223,000 recovery for the three months ended September 30, 2024, resulting from a decrease in net loans receivable during the period.

    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,
		2025								2024
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
		(Dollars in thousands)
Interest-earning assets:
Loans receivable		$	463,931				6.22	%		$	466,170				5.87	%
Investment securities			96,390				2.28				96,749				2.09
Interest-earning deposits			15,105				4.83				25,617				5.20
Total interest-earning assets		$	575,426				5.52	%		$	588,536				5.22	%
Interest-bearing liabilities:
Savings accounts		$	94,102				1.69	%		$	82,556				1.61	%
NOW accounts			65,801				1.13				72,787				1.10
Money market accounts			73,599				2.07				75,216				2.37
Certificates of deposit			194,016				3.48				204,019				4.30
Total interest-bearing deposits			427,518				2.48				434,578				2.92
Other bank borrowings			4,000				7.54				5,989				7.75
Total interest-bearing liabilities		$	431,518				2.53	%		$	440,567				2.98	%

    The $350,000 increase in non-interest income for the three months ended September 30, 2025, compared to the prior year quarterly period, resulted from a decrease of $254,000 in loss on sale of real estate, an increase of $50,000 in gain on sale of loans, an increase of $32,000 in service charges on deposit accounts, and an increase of $14,000 in other non-interest income. The $254,000 loss on sale of real estate for the prior year period related to a one-to-four family residence in other real estate owned that was sold during the period.

    The $160,000 decrease in non-interest expense for the three months ended September 30, 2025, compared to the same period in 2024, resulted from decreases of $152,000 in compensation and benefits expense, $63,000 in audit and examination fees, $33,000 in franchise and bank shares tax, $32,000 in professional fees, $28,000 in advertising expense, $7,000 in amortization of core deposit intangible expense, partially offset by increases of $117,000 in data processing expense, $17,000 in other non-interest expense, $14,000 in loan and collection expense, $4,000 in occupancy and equipment expense, and $3,000 in deposit insurance premium expense. 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, and all invoices going forward included all services. The increase in services billed resulted in the increase for the three months ended September 30, 2025.

    Total assets increased $13.138 million, or 2.2%, from $609.492 million at June 30, 2025 to $622.630 million at September 30, 2025. The increase in assets resulted from increases in cash and cash equivalents of $9.145 million, or 52.7%, from 17.347 million at June 30, 2025 to $26.492 million at September 30, 2025, net loans receivable of $3.352 million, or 0.7%, from $461.004 million at June 30, 2025 to $464.356 million at September 30, 2025, investment securities of $1.547 million, or 1.6%, from $96.230 million at June 30, 2025 to $97.777 million at September 30, 2025, bank owned life insurance of $28,000, or 0.4%, from $6.926 million at June 30, 2025 to $6.954 million at September 30, 2025, and accrued interest receivable of $18,000, or 1.0%, from $1.836 million at June 30, 2025 to $1.854 million at September 30, 2025, partially offset by decreases in premises and equipment of $258,000, or 1.5%, from $17.266 million at June 30, 2025 to $17.008 million at September 30, 2025, loans-held-for-sale of $224,000, or 14.5%, from $1.540 million at June 30, 2025 to $1.316 at September 30, 2025, real estate owned of $187,000, or 19.3% from $970,000 at June 30, 2025 to $783,000 at September 30, 2025, deferred tax asset of $120,000, or 10.3%, from $1.163 million at June 30, 2025 to $1.043 million at September 30, 2025, other assets of $96,000, or 7.4%, from $1.305 million at June 30, 2025 to $1.209 million at September 30, 2025, and core deposit intangible of $67,000, or 7.3%, from $915,000 at June 30, 2025 to $848,000 at September 30, 2025.

    Total liabilities increased $11.752 million, or 2.1%, from $554.287 million at June 30, 2025 to $566.039 million at September 30, 2025. The increase in liabilities resulted from increases in total deposits of $10.898 million, or 2.0%, from $546.290 million at June 30, 2025 to $557.188 million at September 30, 2025, other accrued expenses and liabilities of $610,000, or 17.7%, from $3.454 million at June 30, 2025 to $4.064 million at September 30, 2025, and advances from borrowers for taxes and insurance of $244,000, or 44.9%, from $543,000 at June 30, 2025 to $787,000 at September 30, 2025. The increase in deposits resulted from increases in certificates of deposit of $12.917 million, or 6.9%, from $187.357 million at June 30, 2025 to $200.274 million at September 30, 2025, non-interest deposits of $5.025 million, or 4.1%, from $122.416 million at June 30, 2025 to $127.441 million at September 30, 2025, and NOW accounts of $1.670 million, or 2.5%, from $67.119 million at June 30, 2025 to $68.789 million at September 30, 2025, partially offset by decreases in money market deposits of $4.848 million, or 6.6%, from $73.771 million at June 30, 2025 to $68.923 million at September 30, 2025, and savings deposits of $3.866 million, or 4.0%, from $95.627 million at June 30, 2025 to $91.761 million at September 30, 2025. The Company had no balances in brokered deposits at September 30, 2025 or June 30, 2025.
  
    At September 30, 2025, the Company had $2.225 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 $3.305 million of non-performing assets at June 30, 2025, consisting of seven one-to-four family residential loans, three home equity loans, one commercial non-real estate loans, one land loan, and one single-family residence in other real estate owned at September 30, 2025, compared to six one-to-four family residential loans, two home equity loans, three commercial non-real estate loans, two commercial real estate loans and one single-family residences in other real estate owned at June 30, 2025. At September 30, 2025 the Company had ten one-to-four family residential loans, three home equity loans, three commercial non-real estate loans, one commercial real estate loans, one land loan and one consumer loan classified as substandard, compared to eight one-to-four family residential loans, five commercial non-real estate loans, two home equity loans, two commercial real estate loans and one consumer loan classified as substandard at June 30, 2025. There were no loans classified as doubtful at September 30, 2025 or June 30, 2025.

    Stockholders’ equity increased $1.386 million, or 2.5%, from $55.205 million at June 30, 2025 to $56.591 million at September 30, 2025. The increase in stockholders’ equity resulted from net income for the quarter ended September 30, 2025 of $1.599 million, a decrease in the Company’s accumulated other comprehensive loss of $395,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $63,000, and proceeds from the issuance of common stock from the exercise of stock options of $23,000, partially offset by dividends paid totaling $416,000, and stock repurchases of $279,000.

    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 LOUISIANA  CONSOLIDATED BALANCE SHEETS  (In thousands except share and per share data)
		September 30, 2025				June 30, 2025
		(Unaudited)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $16,563 and $10,380 at September 30, 2025 and June 30, 2025, respectively)		$	26,492			$	17,347
Securities Available-for-Sale (amortized cost September 30, 2025: $39,277; June 30, 2025: $36,695, respectively)			37,329				34,246
Securities Held-to-Maturity (fair value September 30, 2025: $50,841; June 30, 2025: $51,139, respectively)			59,794				61,334
Other Securities			654				650
Loans Held-for-Sale			1,316				1,540
Loans Receivable, Net of Allowance for Credit Losses (September 30, 2025: $4,387; June 30, 2025: $4,484, respectively)			464,356				461,004
Accrued Interest Receivable			1,854				1,836
Premises and Equipment, Net			17,008				17,266
Bank Owned Life Insurance			6,954				6,926
Goodwill			2,990				2,990
Core Deposit Intangible			848				915
Deferred Tax Asset			1,043				1,163
Real Estate Owned			783				970
Other Assets			1,209				1,305
Total Assets		$	622,630			$	609,492
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing		$	127,441			$	122,416
Interest-bearing			429,747				423,874
Total Deposits			557,188				546,290
Advances from Borrowers for Taxes and Insurance			787				543
Other Borrowings			4,000				4,000
Other Accrued Expenses and Liabilities			4,064				3,454
Total Liabilities			566,039				554,287
STOCKHOLDERS’ 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: 3,066,369 and 3,084,764 Shares Issued and Outstanding at September 30, 2025 and June 30, 2025, respectively			32				32
Additional Paid-in Capital			42,259				42,187
Unearned ESOP Stock			(307	)			(321	)
Retained Earnings			16,146				15,241
Accumulated Other Comprehensive Loss			(1,539	)			(1,934	)
Total Stockholders’ Equity			56,591				55,205
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	622,630			$	609,492

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data) (Unaudited)

		Three Months Ended
		September 30,
		2025				2024
INTEREST INCOME
Loans, including fees		$	7,271			$	6,895
Investment securities			13				67
Mortgage-backed securities			542				443
Other interest-earning assets			184				336
Total interest income			8,010				7,741
INTEREST EXPENSE
Deposits			2,673				3,197
Other bank borrowings			76				117
Total interest expense			2,749				3,314
Net interest income			5,261				4,427
PROVISION FOR (RECOVERY OF) CREDIT LOSSES			43				(223	)
Net interest income after provision for credit losses			5,218				4,650
NON-INTEREST INCOME
Gain on sale of loans			146				96
Gain (Loss) on sale of real estate			-				(254	)
Income on bank owned life insurance			28				28
Service charges on deposit accounts			423				391
Other income			53				39
Total non-interest income			650				300
NON-INTEREST EXPENSE
Compensation and benefits			2,150				2,302
Occupancy and equipment			568				564
Data processing			336				219
Audit and examination fees			69				132
Franchise and bank shares tax			135				168
Advertising			29				57
Professional fees			85				117
Loan and collection			42				28
Amortization core deposit intangible			67				74
Deposit insurance premium			93				90
Other expenses			277				260
Total non-interest expense			3,851				4,011
Income before income taxes			2,017				939
PROVISION FOR INCOME TAX EXPENSE (BENEFIT)			418				(2	)
NET INCOME		$	1,599			$	941
EARNINGS PER SHARE
Basic		$	0.53			$	0.31
Diluted		$	0.52			$	0.31

  

		Three Months Ended
		September 30,
		2025				2024
Selected Operating Ratios(1):
Average interest rate spread			2.99	%			2.23	%
Net interest margin			3.63	%			2.98	%
Return on average assets			1.03	%			0.59	%
Return on average equity			11.38	%			7.23	%
Asset Quality Ratios(2):
Non-performing assets as a percent of total assets			0.36	%			0.31	%
Allowance for credit losses as a percentage of non-performing loans			304.11	%			258.46	%
Allowance for credit losses as a percentage of total loans receivable			0.94	%			1.03	%
Per Share Data:
Shares outstanding at period end			3,066,369				3,129,668
Weighted average shares outstanding:
Basic			3,008,371				3,058,286
Diluted			3,048,626				3,071,716
Book value per share		$	18.46			$	17.34

____________________________
(1) Ratios for the three-month period are annualized.
(2) Asset quality ratios are end of period ratios.

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

FAQ

What were Home Federal Bancorp (HFBL) earnings and EPS for Q3 2025?

HFBL reported net income $1.599M for Q3 2025 with basic/diluted EPS of $0.53/$0.52.

How did HFBL's net interest margin change in Q3 2025 compared to Q3 2024?

HFBL's net interest margin rose to 3.63% in Q3 2025 from 2.98% a year earlier (a 65 bp increase).

Did HFBL use brokered deposits or FHLB advances at Sept 30, 2025?

No—HFBL reported zero dependency on wholesale funding with no brokered deposits or FHLB advances at June 30 or Sept 30, 2025.

How did HFBL's asset quality metrics move in Q3 2025?

Non-performing assets declined to $2.225M at Sept 30, 2025 from $3.305M at June 30, 2025.

What drove HFBL's year-over-year net income improvement in Q3 2025?

Drivers were net interest income up $834K (18.8%), non-interest income up $350K, and non-interest expense down $160K, partially offset by higher taxes and credit provisions.

How did HFBL's book value per share change as of Sept 30, 2025?

Book value per share increased to $18.46 at Sept 30, 2025 from $17.90 at June 30, 2025.