Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three and Six Months Ended December 31, 2024

Rhea-AI Summary

Home Federal Bancorp (NASDAQ: HFBL) reported net income of $1.02 million for Q4 2024, slightly up from $1.00 million in Q4 2023. However, six-month net income decreased to $2.0 million from $2.2 million year-over-year. The company's earnings per share remained stable at $0.33 for Q4 but declined to $0.64 from $0.73 for the six-month period.

Key financial metrics show mixed performance: nonperforming assets remained stable at 0.30% of total assets, total assets decreased by 4.7% to $607.8 million, and net loans receivable declined by 2.6% to $458.7 million. The company's net interest margin slightly contracted to 3.12% in Q4 2024 from 3.14% in Q4 2023, while the six-month net interest margin decreased to 3.06% from 3.26%.

Total deposits decreased by 4.8% to $546.5 million, with significant changes in deposit mix including a 14.3% decrease in certificates of deposit and a 21.7% increase in savings deposits.

Positive

• Slight increase in quarterly net income to $1.02M from $1.00M year-over-year
• Non-interest expense decreased by $413,000 (9.7%) in Q4
• Non-interest income increased by $351,000 (256.2%) in Q4
• Stable nonperforming assets ratio at 0.30% of total assets

Negative

• Six-month net income declined to $2.0M from $2.2M year-over-year
• Net interest margin decreased to 3.06% from 3.26% for six-month period
• Total assets decreased by 4.7% to $607.8M
• Total deposits declined by 4.8% to $546.5M
• Net loans receivable decreased by 2.6% to $458.7M

Insights

Financial Analyst

The Q2 FY2025 results reveal a complex operating environment for Home Federal Bancorp. While quarterly earnings showed marginal improvement of 20,000 YoY, the underlying metrics suggest mounting challenges in the core banking business.

The deposit composition underwent significant shifts, with certificates of deposit declining by 30.8 million (14.3%) and money market accounts dropping by 12.2 million (14.3%). This deposit migration pattern, particularly toward lower-cost savings accounts which increased by 21.7%, indicates successful deposit retention strategies but at the cost of net interest margin compression.

The efficiency improvements are noteworthy, with non-interest expenses decreasing by 413,000 quarterly, primarily through reductions in:

• Franchise and bank shares tax (163,000)
• Compensation and benefits (99,000)
• Professional and audit fees (133,000)

Asset quality remains robust with non-performing assets at 0.30% of total assets, unchanged from June 2024. The absence of FHLB advances and reduced other borrowings to 4.0 million from 7.0 million reflects strong liquidity management.

However, the declining interest rate spread (2.40% vs 2.45% YoY) and compressed net interest margin (3.12% vs 3.14%) signal ongoing profitability pressures. The 4.7% reduction in total assets to 607.8 million suggests a deliberate balance sheet optimization strategy, though this may constrain future earnings growth potential.

Shreveport, La, Jan. 30, 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 December 31, 2024, of $1.02 million compared to net income of $1.00 million reported for the three months ended December 31, 2023. The Company’s basic and diluted earnings per share were $0.33 for the three months ended December 31, 2024 and December 31, 2023. The Company reported net income of $2.0 million for the six months ended December 31, 2024, compared to $2.2 million for the six months ended December 31, 2023. The Company’s basic and diluted earnings per share were $0.64 for the six months ended December 31, 2024 compared to $0.73 and $0.72, respectively, for the six months ended December 31, 2023.

The Company reported the following highlights during the six months ended December 31, 2024:

• Nonperforming assets totaled $1.8 million, or 0.30% of total assets at December 31, 2024 compared to $1.9 million, or 0.30% of total assets, at June 30, 2024.
• There were no advances from the FHLB at December 31, 2024 or June 30, 2024.
• Other borrowings totaled $4.0 million at December 31, 2024 compared to $7.0 million at June 30, 2024.

The increase in net income for the three months ended December 31, 2024, as compared to the same period in 2023 resulted primarily from a decrease of $413,000, or 9.7%, in non-interest expense and an increase of $351,000, or 256.2%, in non-interest income, partially offset by an increase of $383,000, or 195.4%, in provision for income taxes, a decrease of $303,000, or 6.2%, in net interest income, and an increase of $61,000, or 381.3%, in the provision for credit losses. The decrease in net interest income for the three months ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease of $422,000, or 5.2%, in total interest income, partially offset by a decrease of $119,000, or 3.7%, in total interest expense. The Company’s average interest rate spread was 2.40% for the three months ended December 31, 2024, compared to 2.45% for the three months ended December 31, 2023. The Company’s net interest margin was 3.12% for the three months ended December 31, 2024, compared to 3.14% for the three months ended December 31, 2023.

The decrease in net income for the six months ended December 31, 2024, as compared to the same period in 2023 resulted primarily from a decrease of $1.2 million, or 11.4%, in net interest income and an increase of $71,000, or 62.3%, in provision for income taxes, partially offset by a decrease of $591,000, or 7.0%, in non-interest expense, an increase of $216,000, or 37.8%, in non-interest income, and an increase of $162,000 in the recovery of credit losses. The decrease in net interest income for the six months ended December 31, 2024, as compared to the same period in 2023, was primarily due to a decrease of $755,000, or 4.7%, in total interest income and an increase of $405,000, or 6.8%, in total interest expense. The Company’s average interest rate spread was 2.32% for the six months ended December 31, 2024 compared to 2.60% for the six months ended December 31, 2023. The Company’s net interest margin was 3.06% for the six months ended December 31, 2024 compared to 3.26% for the six months ended December 31, 2023.

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 December 31,
		2024								2023
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
		(Dollars in thousands)
Interest-earning assets:
Loans receivable		$	457,553				5.89	%		$	507,844				5.78	%
Investment securities			96,715				2.19				109,485				2.43
Interest-earning deposits			29,653				4.47				1,751				2.95
Total interest-earning assets		$	583,921				5.20	%		$	619,080				5.18	%
Interest-bearing liabilities:
Savings accounts		$	90,696				1.71	%		$	73,228				0.40	%
NOW accounts			70,685				1.26				65,252				0.43
Money market accounts			79,365				2.21				95,763				2.49
Certificates of deposit			188,929				4.03				212,792				4.01
Total interest-bearing deposits			429,675				2.75				447,035				2.57
Other bank borrowings			4,489				7.16				9,202				8.58
FHLB advances			-				-				5,379				5.75
Total interest-bearing liabilities		$	434,164				2.80	%		$	461,616				2.73	%

		For the Six Months Ended December 31,
		2024								2023
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
		(Dollars in thousands)
Interest-earning assets:
Loans receivable		$	461,531				5.88	%		$	503,043				5.79	%
Investment securities			96,732				2.14				111,535				2.46
Interest-earning deposits			27,635				4.81				5,843				3.43
Total interest-earning assets		$	585,898				5.21	%		$	620,421				5.16	%
Interest-bearing liabilities:
Savings accounts		$	86,626				1.66	%		$	75,900				0.39	%
NOW accounts			71,736				1.18				66,639				0.41
Money market accounts			77,290				2.29				102,327				2.37
Certificates of deposit			196,443				4.17				203,779				3.88
Total interest-bearing deposits			432,095				2.83				448,645				2.43
Other bank borrowings			5,239				7.50				8,928				8.47
FHLB advances			-				-				3,259				5.66
Total interest-bearing liabilities		$	437,334				2.89	%		$	460,832				2.57	%

The $351,000 increase in non-interest income for the three months ended December 31, 2024, compared to the prior year quarterly period, was primarily due to a decrease of $369,000 in loss on sale of real estate, an increase of $62,000 in other non-interest income, and an increase of $2,000 in income on bank owned life insurance, partially offset by a decrease of $71,000 in gain on sale of loans, an increase of $6,000 in loss on sale of securities, and a decrease of $5,000 in service charges on deposit accounts. The $216,000 increase in non-interest income for the six months ended December 31, 2024 compared to the prior year six-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $88,000 in other non-interest income, and an increase of $4,000 in income from bank owned life insurance, partially offset by a decrease of $14,000 in gain on sale of loans, an increase of $6,000 in loss on sale of securities, and a decrease of $5,000 in service charges on deposit accounts.

The $413,000 decrease in non-interest expense for the three months ended December 31, 2024, compared to the same period in 2023, is primarily attributable to decreases of $163,000 in franchise and bank shares tax expense, $132,000 in other non-interest expense, $99,000 in compensation and benefits expense, $80,000 in audit and examination fees, $53,000 in professional fees, $38,000 in advertising expense, $33,000 in deposit insurance premium expense, $13,000 in amortization of core deposit intangible expense, $7,000 in occupancy and equipment expense, and $2,000 in loan and collection expense. The decreases were partially offset by an increase of $207,000 in data processing expense. The $591,000 decrease in non-interest expense for the six months ended December 31, 2024, compared to the same six-month period in 2023, is primarily attributable to decreases of $153,000 in compensation and benefits expense, $151,000 in franchise and bank shares tax expense, $124,000 in advertising expense, $105,000 in other non-interest expense, $96,000 in professional fees, $50,000 in audit and examination fees, $34,000 in loan and collection expense, $34,000 in deposit insurance premium expense, and $33,000 in amortization of core deposit intangible expense. The decreases were partially offset by increases of $180,000 in data processing expense and $9,000 in occupancy and equipment expense.

Total assets decreased $29.7 million, or 4.7%, from $637.5 million at June 30, 2024 to $607.8 million at December 31, 2024. The decrease in assets was comprised of decreases in cash and cash equivalents of $15.4 million, or 44.1%, from $34.9 million at June 30, 2024 to $19.5 million at December 31, 2024, net loans receivable of $12.2 million, or 2.6%, from $470.9 million at June 30, 2024 to $458.7 million at December 31, 2024, loans-held-for-sale of $1.5 million, or 87.5%, from $1.7 million at June 30, 2024 to $216,000 at December 31, 2024, premises and equipment of $459,000, or 2.5%, from $18.3 million at June 30, 2024 to $17.8 million at December 31, 2024, real estate owned of $418,000, or 100.0% from $418,000 at June 30, 2024 to none at December 31, 2024, investment securities of $264,000, or 0.3%, from $96.0 million at June 30, 2024 to $95.7 million at December 31, 2024, and core deposit intangible of $146,000, or 12.2%, from $1.2 million at June 30, 2024 to $1.1 million at December 31, 2024, partially offset by increases in deferred tax asset of $357,000, or 30.2%, from $1.2 million at June 30, 2024 to $1.5 million at December 31, 2024, other assets of $195,000, or 14.4%, from $1.3 million at June 30, 2024 to $1.5 million at December 31, 2024, bank owned life insurance of $58,000, or 0.9%, from $6.81 million at June 30, 2024 to $6.87 million at December 31, 2024, and accrued interest receivable of $12,000, or 0.7%, from $1.78 million at June 30, 2024 to $1.79 million at December 31, 2024.

Total liabilities decreased $30.9 million, or 5.3%, from $584.7 million at June 30, 2024 to $553.8 million at December 31, 2024. The decrease in liabilities was comprised of decreases in total deposits of $27.5 million, or 4.8%, from $574.0 million at June 30, 2024 to $546.5 million at December 31, 2024, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at December 31, 2024, advances from borrowers for taxes and insurance of $252,000, or 48.4%, from $521,000 at June 30, 2024 to $269,000 at December 31, 2024, and other accrued expenses and liabilities of $164,000, or 5.2%, from $3.2 million at June 30, 2024 to $3.0 million at December 31, 2024. The decrease in deposits resulted from decreases in certificates of deposit of $30.8 million, or 14.3%, from $214.9 million at June 30, 2024 to $184.1 million at December 31, 2024, money market deposits of $12.2 million, or 14.3%, from $85.5 million at June 30, 2024 to $73.3 million at December 31, 2024, and non-interest deposits of $1.9 million, or 1.5%, from $130.3 million at June 30, 2024 to $128.4 million at December 31, 2024, partially offset by increases in savings deposits of $16.7 million, or 21.7%, from $76.6 million at June 30, 2024 to $93.3 million at December 31, 2024, and NOW accounts of $796,000, or 1.2%, from $66.6 million at June 30, 2024 to $67.4 million at December 31, 2024. The Company had no balances in brokered deposits at December 31, 2024 or June 30, 2024.

At December 31, 2024, the Company had $1.8 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 on non-performing assets at June 30, 2024, consisting of five one-to-four family residential loans, five home equity loans, two commercial non-real estate loans, and one commercial real-estate loan at December 31, 2024, 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 December 31, 2024 the Company had eight one-to-four family residential loans, five home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and one consumer loan 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 December 31, 2024 or June 30, 2024.

Shareholders’ equity increased $1.1 million, or 2.1%, from $52.8 million at June 30, 2024 to $53.9 million at December 31, 2024. The increase in shareholders’ equity was comprised of net income for the six-month period of $2.0 million, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $311,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by an increase in the Company’s accumulated other comprehensive loss of $10,000, dividends paid totaling $816,000, and stock repurchases of $335,000.

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)

		December 31, 2024				June 30, 2024
		(Unaudited)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $16,389 and $25,505 at December 31, 2024 and June 30, 2024, Respectively)		$	19,540			$	34,948
Securities Available-for-Sale (amortized cost December 31, 2024: $32,930; June 30, 2024: $30,348, Respectively)			29,607				27,037
Securities Held-to-Maturity (fair value December 31, 2024: $52,451; June 30, 2024: $54,450, Respectively)			64,431				67,302
Other Securities			1,651				1,614
Loans Held-for-Sale			216				1,733
Loans Receivable, Net of Allowance for Credit Losses (December 31, 2024: $4,749; June 30, 2024: $4,574, Respectively)			458,693				470,852
Accrued Interest Receivable			1,787				1,775
Premises and Equipment, Net			17,844				18,303
Bank Owned Life Insurance			6,868				6,810
Goodwill			2,990				2,990
Core Deposit Intangible			1,053				1,199
Deferred Tax Asset			1,538				1,181
Real Estate Owned			-				418
Other Assets			1,545				1,350
Total Assets		$	607,763			$	637,512
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing		$	128,439			$	130,334
Interest-bearing			418,105				443,673
Total Deposits			546,544				574,007
Advances from Borrowers for Taxes and Insurance			269				521
Other Borrowings			4,000				7,000
Other Accrued Expenses and Liabilities			3,017				3,181
Total Liabilities			553,830				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: 3,132,764 and 3,142,168 Shares Issued and Outstanding at December 31, 2024 and June 30, 2024, Respectively			32				32
Additional Paid-in Capital			42,010				41,739
Unearned ESOP Stock			(350	)			(408	)
Retained Earnings			14,866				14,055
Accumulated Other Comprehensive Loss			(2,625	)			(2,615	)
Total Shareholders’ Equity			53,933				52,803
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY		$	607,763			$	637,512

HOME FEDERAL BANCORP, INC. OF LOUISIANA CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data)

(Unaudited)

		Three Months Ended								Six Months Ended
		December 31,								December 31,
		2024				2023				2024				2023
Interest income
Loans, including fees		$	6,791			$	7,397			$	13,686			$	14,671
Investment securities			63				210				130				449
Mortgage-backed securities			470				460				913				933
Other interest-earning assets			334				13				670				101
Total interest income			7,658				8,080				15,399				16,154
Interest expense
Deposits			2,977				2,901				6,175				5,494
Federal Home Loan Bank borrowings			-				78				-				93
Other bank borrowings			81				198				198				381
Total interest expense			3,058				3,177				6,373				5,968
Net interest income			4,600				4,903				9,026				10,186
Provision for (recovery of) credit losses			45				(16	)			(178	)			(16	)
Net interest income after provision for credit losses			4,555				4,919				9,204				10,202
Non-interest income
Loss on sale of real estate			(12	)			(381	)			(266	)			(415	)
Gain on sale of loans			5				76				101				115
Loss on sale of securities			(6	)			-				(6	)			-
Income on Bank-Owned Life Insurance			30				28				58				54
Service charges on deposit accounts			392				397				783				788
Other income			79				17				118				30
Total non-interest income			488				137				788				572
Non-interest expense
Compensation and benefits			2,229				2,328				4,531				4,684
Occupancy and equipment			537				544				1,101				1,092
Data processing			336				129				554				374
Audit and examination fees			191				271				323				373
Franchise and bank shares tax			1				164				169				320
Advertising			44				82				101				225
Legal fees			134				187				251				347
Loan and collection			30				32				58				92
Amortization Core Deposit Intangible			72				85				146				179
Deposit insurance premium			75				108				165				199
Other expenses		187					319				447				552
Total non-interest expense			3,836				4,249				7,846				8,437
Income before income taxes			1,207				807				2,146				2,337
Provision for income tax expense (benefit)			187				(196	)			185				114
NET INCOME		$	1,020			$	1,003			$	1,961			$	2,223
EARNINGS PER SHARE
Basic		$	0.33			$	0.33			$	0.64			$	0.73
Diluted		$	0.33			$	0.33			$	0.64			$	0.72

		Three Months Ended								Six Months Ended
		December 31,								December 31,
		2024				2023				2024				2023
Selected Operating Ratios(1):
Average interest rate spread			2.40	%			2.45	%			2.32	%			2.60	%
Net interest margin			3.12	%			3.14	%			3.06	%			3.26	%
Return on average assets			0.65	%			0.60	%			0.62	%			0.67	%
Return on average equity			7.76	%			7.81	%			7.50	%			8.64	%
Asset Quality Ratios(2):
Non-performing assets as a percent of total assets			0.30	%			0.34	%			0.30	%			0.34	%
Allowance for credit losses as a percent of non-performing loans			260.70	%			226.50	%			260.70	%			226.50	%
Allowance for credit losses as a percent of total loans receivable			1.02	%			1.00	%			1.02	%			1.00	%
Per Share Data:
Shares outstanding at period end			3,132,764				3,143,532				3,132,764				3,143,532
Weighted average shares outstanding:
Basic			3,059,305				3,040,006				3,062,666				3,033,341
Diluted			3,075,221				3,085,271				3,077,371				3,096,546
Book value per share at period end		$	17.22			$	16.73			$	17.22			$	16.73
_____________________
(1) Ratios for the three and six month periods are annualized.
(2) Asset quality ratios are end of period ratios.

FAQ

What was HFBL's net income for Q4 2024 compared to Q4 2023?

HFBL reported net income of $1.02 million for Q4 2024, compared to $1.00 million in Q4 2023.

How did HFBL's total assets change in December 2024?

Total assets decreased by $29.7 million (4.7%) from $637.5 million in June 2024 to $607.8 million in December 2024.

What was HFBL's net interest margin for the six months ended December 2024?

HFBL's net interest margin was 3.06% for the six months ended December 2024, compared to 3.26% for the same period in 2023.

How did HFBL's deposit base change in December 2024?

Total deposits decreased by 4.8% to $546.5 million, with certificates of deposit declining 14.3% while savings deposits increased by 21.7%.

What was HFBL's nonperforming assets ratio in December 2024?

Nonperforming assets totaled $1.8 million, or 0.30% of total assets at December 31, 2024.