Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three Months and Year Ended June 30, 2025

Rhea-AI Summary

Home Federal Bancorp (NASDAQ:HFBL) reported financial results for Q4 and full year 2025. The company achieved net income of $1.2 million for Q4 2025, up from $638,000 in Q4 2024, and full-year net income of $3.9 million, compared to $3.6 million in 2024.

Key financial metrics include EPS of $0.39 for Q4 2025 (vs $0.21 in Q4 2024) and full-year EPS of $1.27 (vs $1.18 in 2024). The bank's net interest margin improved to 3.52% in Q4 2025 from 2.91% in Q4 2024. Total assets decreased by 4.4% to $609.5 million, while deposits declined by 4.8% to $546.3 million.

Positive

• Net income increased 88% YoY to $1.2 million in Q4 2025
• Q4 EPS grew 85.7% YoY to $0.39
• Net interest margin improved to 3.52% from 2.91% YoY in Q4
• Book value per share increased to $17.66 from $16.80 YoY
• Non-interest income rose 34.2% in Q4 2025

Negative

• Total assets decreased 4.4% to $609.5 million
• Total deposits declined 4.8% to $546.3 million
• Non-performing assets increased to $3.3 million from $1.9 million YoY
• Net loans receivable decreased 2.1% to $461.0 million
• Cash and cash equivalents dropped 50.4% to $17.3 million

Insights

Banking Financial Analyst

HFBL reported significant earnings improvement, with Q4 net income nearly doubling YoY amid improved interest margins despite asset contraction.

Home Federal Bancorp's fourth quarter results show substantial improvement with net income nearly doubling to $1.2 million compared to $638,000 in the same quarter last year. This drove quarterly EPS up to $0.39 from $0.21, representing an 85.7% increase. For the full fiscal year, net income reached $3.9 million, up 8.3% from $3.6 million in FY2024, with EPS rising to $1.27 from $1.18.

The quarterly improvement stems primarily from a 14.2% increase in net interest income and a 34.2% jump in non-interest income. The bank's interest rate spread widened significantly to 2.89% from 2.15% in the year-ago quarter, while net interest margin improved to 3.52% from 2.91%. This margin expansion occurred despite a deliberate balance sheet contraction, with total assets decreasing by 4.4% to $609.5 million.

The bank's funding profile is showing notable shifts, with higher-cost certificates of deposit declining by 12.8% while lower-cost savings deposits increased by 24.8%. This deposit mix improvement helped reduce interest expense by 23.0% in the quarter. The bank also strengthened its capital position by completely eliminating FHLB advances and reducing other borrowings by 42.9% to $4.0 million.

Asset quality shows some deterioration, with non-performing assets increasing to $3.3 million from $1.9 million a year ago. However, book value per share improved to $17.66 from $16.80, reflecting the company's continued profitability and capital management initiatives including $1.6 million in dividends and $1.1 million in share repurchases during the year.

One notable expense item was an unusual increase in data processing costs due to unbilled services dating back to December 2022, which was settled at a discount but still impacted both quarterly and annual results. Despite this one-time issue, the bank managed to reduce overall non-interest expenses by 1.7% for the full year, demonstrating effective cost control.

Shreveport, Louisiana, July 29, 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 June 30, 2025, of $1.2 million compared to net income of $638,000 reported for the three months ended June 30, 2024. The Company’s basic and diluted earnings per share were $0.39 and $0.38, respectively, for the three months ended June 30, 2025 compared to $0.21 for the three months ended June 30, 2024. The Company reported net income of $3.9 million for the year ended June 30, 2025, compared to $3.6 million for the year ended June 30, 2024. The Company’s basic and diluted earnings per share were $1.27 and $1.26, respectively, for the year ended June 30, 2025 compared to $1.18 and $1.17, respectively, for the year ended June 30, 2024.

The Company reported the following highlights during the year ended June 30, 2025:

• Book value per share increased to $17.66 at June 30, 2025 from $16.80 at June 30, 2024.
• There were no advances from the FHLB at June 30, 2025 or June 30, 2024.
• Other borrowings totaled $4.0 million at June 30, 2025 compared to $7.0 million at June 30, 2024.

The increase in net income for the three months ended June 30, 2025, as compared to the same period in 2024, resulted primarily from an increase of $612,000, or 14.2%, in net interest income, an increase of $173,000, or 34.2%, in non-interest income, partially offset by an increase of $188,000, or 101.1%, in the provision for income taxes, an increase of $54,000, or 1.4%, in non-interest expense, and an increase of $1,000, or 2.2%, in the provision for credit losses. The increase in net interest income for the three months ended June 30, 2025, as compared to the same period in 2024, was primarily due to a decrease of $794,000, or 23.0%, in total interest expense, partially offset by a decrease of $181,000, or 2.3%, in total interest income. The Company’s average interest rate spread was 2.89% for the three months ended June 30, 2025, compared to 2.15% for the three months ended June 30, 2024. The Company’s net interest margin was 3.52% for the three months ended June 30, 2025, compared to 2.91% for the three months ended June 30, 2024.

The increase in net income for the year ended June 30, 2025, as compared to the year ended June 30, 2024, resulted primarily from an increase of $421,000, or 26.6%, in non-interest income, a decrease of $278,000, or 1.7%, in non-interest expense, and an increase of $166,000 in the recovery of credit losses, partially offset by an increase of $290,000, or 60.9%, in the provision for income taxes and a decrease of $280,000, or 1.5%, in net interest income. The decrease in net interest income for the year ended June 30, 2025, as compared to the year ended June 30, 2024, was primarily due to a decrease of $1.4 million, or 4.4%, in total interest income, partially offset by a decrease of $1.1 million, or 8.7%, in total interest expense. The Company’s average interest rate spread was 2.55% for the year ended June 30, 2025, compared to 2.38% for the year ended June 30, 2024. The Company’s net interest margin was 3.23% for the year ended June 30, 2025, compared to 3.08% for the year ended June 30, 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 June 30,
		2025								2024
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
		(Dollars in thousands)
Interest-earning assets:
Loans receivable		$	458,504				6.05	%		$	485,859				5.85	%
Investment securities			95,524				2.72				98,277				2.13
Interest-earning deposits			12,581				2.26				19,094				4.97
Total interest-earning assets		$	566,609				5.41	%		$	603,230				5.21	%
Interest-bearing liabilities:
Savings accounts		$	94,333				1.74	%		$	75,523				1.18	%
NOW accounts			68,425				1.16				67,460				0.72
Money market accounts			75,492				2.05				78,543				2.53
Certificates of deposit			180,979				3.53				224,791				4.42
Total interest-bearing deposits			419,229				2.48				446,317				2.98
Other bank borrowings			4,101				7.43				7,149				8.38
FHLB advances			55				0.00				-				-
Total interest-bearing liabilities		$	423,385				2.52	%		$	453,466				3.07	%

		For the Year Ended June 30,
		2025								2024
		Average Balance				Average Yield/Rate				Average Balance				Average Yield/Rate
		(Dollars in thousands)
Interest-earning assets:			��
Loans receivable		$	460,356				5.94	%		$	499,237				5.81	%
Investment securities			96,178				2.36				106,526				2.33
Interest-earning deposits			20,647				4.12				8,550				4.34
Total interest-earning assets		$	577,181				5.28	%		$	614,313				5.19	%
Interest-bearing liabilities:
Savings accounts		$	90,458				1.71	%		$	74,135				0.65	%
NOW accounts			70,375				1.17				67,224				0.53
Money market accounts			76,494				2.16				93,178				2.46
Certificates of deposit			189,204				3.92				213,662				4.15
Total interest-bearing deposits			426,531				2.68				448,199				2.68
Other bank borrowings			4,650				7.53				8,700				8.45
FHLB advances			14				0.00				3,119				5.77
Total interest-bearing liabilities		$	431,195				2.73	%		$	460,018				2.81	%

The $173,000 increase in non-interest income for the three months ended June 30, 2025, compared to the prior year quarterly period, was primarily due to an increase of $122,000 in gain on sale of loans, an increase of $30,000 in service charges on deposit accounts, an increase of $19,000 in other non-interest income, an increase of $1,000 in income on bank owned life insurance, and a $1,000 gain on sale of real estate. The $421,000 increase in non-interest income for the year ended June 30, 2025 compared to the prior year was primarily due to a decrease of $150,000 in loss on sale of real estate, an increase of $134,000 in other non-interest income, an increase of $119,000 in gain on sale of loans, an increase of $44,000 in service charges on deposit accounts, and an increase of $6,000 in income from bank owned life insurance, partially offset by an increase of $32,000 in loss on sale of securities.

The $54,000 increase in non-interest expense for the three months ended June 30, 2025, compared to the same period in 2024, is primarily attributable to increases of $190,000 in data processing expense, $66,000 in occupancy and equipment expense, and $31,000 in audit and examination fees. The increases were partially offset by decreases of $114,000 in compensation and benefits expense, $36,000 in advertising expense, $33,000 in franchise and bank shares tax expense, $24,000 in deposit insurance premium expense, $15,000 in professional fees, $7,000 in amortization of core deposit intangible expense, $3,000 in other non-interest expense, and $1,000 in loan and collection expense. The $278,000 decrease in non-interest expense for the year ended June 30, 2025, compared to the year ended June 30, 2024, is primarily attributable to decreases of $584,000 in compensation and benefits expense, $217,000 in franchise and bank shares tax expense, $215,000 in advertising expense, $68,000 in other non-interest expense, $62,000 in professional fees, $49,000 in amortization of core deposit intangible expense, $46,000 in deposit insurance premium expense, and $21,000 in loan and collection expense. The decreases were partially offset by increases of $784,000 in data processing expense, $152,000 in occupancy and equipment expense, and $48,000 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, which resulted in the increases for both the quarter and year ended June 30, 2025.

Total assets decreased $28.0 million, or 4.4%, from $637.5 million at June 30, 2024 to $609.5 million at June 30, 2025. The decrease in assets was comprised of decreases in cash and cash equivalents of $17.6 million, or 50.4%, from $34.9 million at June 30, 2024 to $17.3 million at June 30, 2025, net loans receivable of $9.9 million, or 2.1%, from $470.9 million at June 30, 2024 to $461.0 million at June 30, 2025, premises and equipment of $1.0 million, or 5.7%, from $18.3 million at June 30, 2024 to $17.3 million at June 30, 2025, core deposit intangible of $284,000, or 23.7%, from $1.2 million at June 30, 2024 to $915,000 at June 30, 2025, loans-held-for-sale of $193,000, or 11.1%, from $1.7 million at June 30, 2024 to $1.5 at June 30, 2025, other assets of $46,000, or 3.4%, from $1.35 million at June 30, 2024 to $1.31 million at June 30, 2025, and deferred tax asset of $18,000, or 1.5%, from $1.18 million at June 30, 2024 to $1.16 million at June 30, 2025, partially offset by increases in real estate owned of $552,000, or 132.1% from $418,000 at June 30, 2024 to $970,000 at June 30, 2025, investment securities of $277,000, or 0.3%, from $96.0 million at June 30, 2024 to $96.2 million at June 30, 2025, bank owned life insurance of $116,000, or 1.7%, from $6.8 million at June 30, 2024 to $6.9 million at June 30, 2025, and accrued interest receivable of $61,000, or 3.4%, from $1.78 million at June 30, 2024 to $1.84 million at June 30, 2025.

Total liabilities decreased $30.4 million, or 5.2%, from $584.7 million at June 30, 2024 to $554.3 million at June 30, 2025. The decrease in liabilities was comprised of decreases in total deposits of $27.7 million, or 4.8%, from $574.0 million at June 30, 2024 to $546.3 million at June 30, 2025, and other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at June 30, 2025, partially offset by an increase in other accrued expenses and liabilities of $273,000, or 8.6%, from $3.2 million at June 30, 2024 to $3.5 million at June 30, 2025, and advances from borrowers for taxes and insurance of $22,000, or 4.2%, from $521,000 at June 30, 2024 to $543,000 at June 30, 2025. The decrease in deposits resulted from decreases in certificates of deposit of $27.5 million, or 12.8%, from $214.9 million at June 30, 2024 to $187.4 million at June 30, 2025, money market deposits of $11.7 million, or 13.7%, from $85.5 million at June 30, 2024 to $73.8 million at June 30, 2025, and non-interest deposits of $7.9 million, or 6.1%, from $130.3 million at June 30, 2024 to $122.4 million at June 30, 2025, partially offset by increases in savings deposits of $19.0 million, or 24.8%, from $76.6 million at June 30, 2024 to $95.6 million at June 30, 2025, and NOW accounts of $506,000, or 0.8%, from $66.6 million at June 30, 2024 to $67.1 million at June 30, 2025. The Company had no balances in brokered deposits at June 30, 2025 or June 30, 2024.

At June 30, 2025, the Company had $3.3 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, two home equity loans, three commercial non-real estate loans, two commercial real-estate loans, and one single-family residence in other real estate owned at June 30, 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 June 30, 2025 the Company had eight one-to-four family residential loans, two 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 June 30, 2025 or June 30, 2024.

Stockholders’ equity increased $2.4 million, or 4.5%, from $52.8 million at June 30, 2024 to $55.2 million at June 30, 2025. The increase in stockholders’ equity was comprised of net income for the year ended June 30, 2025 of $3.9 million, a decrease in the Company’s accumulated other comprehensive loss of $681,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $425,000, and proceeds from the issuance of common stock from the exercise of stock options of $111,000, partially offset by dividends paid totaling $1.6 million, and stock repurchases of $1.1 million.

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)

		June 30, 2025				June 30, 2024
		(Unaudited)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $10,380 and $25,505 at June 30, 2025 and June 30, 2024, respectively)		$	17,347			$	34,948
Securities Available-for-Sale (amortized cost June 30, 2025: $36,695; June 30, 2024: $30,348, respectively)			34,246				27,037
Securities Held-to-Maturity (fair value June 30, 2025: $51,139; June 30, 2024: $54,450, respectively)			61,334				67,302
Other Securities			650				1,614
Loans Held-for-Sale			1,540				1,733
Loans Receivable, Net of Allowance for Credit Losses (June 30, 2025: $4,484; June 30, 2024: $4,574, respectively)			461,004				470,852
Accrued Interest Receivable			1,836				1,775
Premises and Equipment, Net			17,266				18,303
Bank Owned Life Insurance			6,926				6,810
Goodwill			2,990				2,990
Core Deposit Intangible			915				1,199
Deferred Tax Asset			1,163				1,181
Real Estate Owned			970				418
Other Assets			1,305				1,350
Total Assets		$	609,492			$	637,512
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing		$	122,416			$	130,334
Interest-bearing			423,874				443,673
Total Deposits			546,290				574,007
Advances from Borrowers for Taxes and Insurance			543				521
Other Borrowings			4,000				7,000
Other Accrued Expenses and Liabilities			3,454				3,181
Total Liabilities			554,287				584,709
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: 3,084,764 and 3,142,168 Shares Issued and Outstanding at June 30, 2025 and June 30, 2024, respectively			32				32
Additional Paid-in Capital			42,187				41,739
Unearned ESOP Stock			(321	)			(408	)
Retained Earnings			15,241				14,055
Accumulated Other Comprehensive Loss			(1,934	)			(2,615	)
Total Stockholders’ Equity			55,205				52,803
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$	609,492			$	637,512

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data) (Unaudited)

		Three Months Ended								Year Ended
		June 30,								June 30,
		2025				2024				2025				2024
INTEREST INCOME
Loans, including fees		$	6,920			$	7,064			$	27,346			$	29,016
Investment securities			112				78				325				651
Mortgage-backed securities			535				441				1,941				1,826
Other interest-earning assets			71				236				850				371
Total interest income			7,638				7,819				30,462				31,864
INTEREST EXPENSE
Deposits			2,589				3,310				11,441				11,998
Federal Home Loan Bank borrowings			-				-				-				180
Other bank borrowings			76				149				350				735
Total interest expense			2,665				3,459				11,791				12,913
Net interest income			4,973				4,360				18,671				18,951
PROVISION FOR (RECOVERY OF) CREDIT LOSSES			46				45				(126	)			40
Net interest income after provision for credit losses			4,927				4,315				18,797				18,911
NON-INTEREST INCOME
Gain on sale of loans			203				81				384				265
Gain(Loss) on sale of real estate			1				-				(265	)			(415	)
Gain(Loss) on sale of securities			-				-				(6	)			26
Income on bank owned life insurance			29				28				116				110
Service charges on deposit accounts			403				373				1,568				1,524
Other income			43				24				208				74
Total non-interest income			679				506				2,005				1,584
NON-INTEREST EXPENSE
Compensation and benefits			2,273				2,387				8,940				9,524
Occupancy and equipment			643				577				2,354				2,202
Data processing			332				142				1,439				655
Audit and examination fees			124				93				597				549
Franchise and bank shares tax			135				168				439				656
Advertising			22				58				145				360
Professional fees			99				114				495				557
Loan and collection			30				31				134				155
Amortization core deposit intangible			69				76				285				334
Deposit insurance premium			80				104				347				393
Other expenses			244				247				973				1,041
Total non-interest expense			4,051				3,997				16,148				16,426
Income before income taxes			1,555				824				4,654				4,069
PROVISION FOR INCOME TAX EXPENSE			374				186				766				476
NET INCOME		$	1,181			$	638			$	3,888			$	3,593
EARNINGS PER SHARE
Basic		$	0.39			$	0.21			$	1.27			$	1.18
Diluted		$	0.38			$	0.21			$	1.26			$	1.17

		Three Months Ended								Year Ended
		June 30,								June 30,
		2025				2024				2025				2024
Selected Operating Ratios(1):
Average interest rate spread			2.89	%			2.15	%			2.55	%			2.38	%
Net interest margin			3.52	%			2.91	%			3.23	%			3.08	%
Return on average assets			0.78	%			0.40	%			0.63	%			0.55	%
Return on average equity			8.64	%			5.07	%			7.31	%			7.01	%
Asset Quality Ratios(2):
Non-performing assets as a percent of total assets			0.54	%			0.31	%			0.54	%			0.31	%
Allowance for credit losses as a percent of non-performing loans			191.99	%			228.70	%			191.99	%			228.70	%
Allowance for credit losses as a percent of total loans receivable			0.96	%			0.96	%			0.96	%			0.96	%
Per Share Data:
Shares outstanding at period end			3,084,764				3,142,168				3,084,764				3,142,168
Weighted average shares outstanding:
Basic			3,032,234	��			3,056,633				3,054,254				3,044,081
Diluted			3,065,150				3,049,576				3,076,694				3,082,560

(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 was HFBL's net income for Q4 2025?

Home Federal Bancorp reported net income of $1.2 million for Q4 2025, compared to $638,000 in Q4 2024, representing an 88% increase year-over-year.

How did HFBL's earnings per share (EPS) perform in fiscal 2025?

HFBL's basic EPS for fiscal 2025 was $1.27, up from $1.18 in 2024, while Q4 2025 EPS increased to $0.39 from $0.21 year-over-year.

What was HFBL's net interest margin in Q4 2025?

The bank's net interest margin was 3.52% for Q4 2025, an improvement from 2.91% in Q4 2024.

How much did HFBL's total deposits change in fiscal 2025?

Total deposits decreased by 4.8% to $546.3 million at June 30, 2025, from $574.0 million at June 30, 2024.

What was HFBL's book value per share as of June 30, 2025?

HFBL's book value per share increased to $17.66 as of June 30, 2025, up from $16.80 at June 30, 2024.