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

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Home Federal Bancorp (NASDAQ: HFBL) reported net income of $941,000 for Q3 2024, down from $1.2 million in Q3 2023. The company's earnings per share decreased to $0.31 from $0.40. The decline was primarily due to a 16.2% decrease in net interest income and a 30.9% decrease in non-interest income. Total assets decreased by $9.1 million to $628.4 million, while net loans receivable decreased by $16.9 million to $454.0 million. The company's net interest margin contracted to 2.98% from 3.37% year-over-year.

Home Federal Bancorp (NASDAQ: HFBL) ha riportato un reddito netto di $941.000 per il terzo trimestre del 2024, in calo rispetto a $1,2 milioni nel terzo trimestre del 2023. Gli utili per azione dell'azienda sono scesi a $0,31 da $0,40. La diminuzione è stata principalmente dovuta a un calo del 16,2% dei proventi da interessi netti e a una diminuzione del 30,9% dei proventi da attività non legate agli interessi. Gli attivi totali sono diminuiti di $9,1 milioni, arrivando a $628,4 milioni, mentre i prestiti netti concessi sono scesi di $16,9 milioni, attestandosi a $454,0 milioni. Il margine di interesse netto dell'azienda si è contratto al 2,98% rispetto al 3,37% dell'anno precedente.

Home Federal Bancorp (NASDAQ: HFBL) reportó un ingreso neto de $941,000 para el tercer trimestre de 2024, una disminución desde $1.2 millones en el tercer trimestre de 2023. Las ganancias por acción de la compañía cayeron a $0.31 desde $0.40. La disminución se debió principalmente a una caída del 16.2% en los ingresos por intereses netos y una disminución del 30.9% en los ingresos no relacionados con intereses. Los activos totales disminuyeron en $9.1 millones a $628.4 millones, mientras que los préstamos netos concedidos disminuyeron en $16.9 millones a $454.0 millones. El margen de interés neto de la compañía se contrajo al 2.98% desde el 3.37% interanual.

Home Federal Bancorp (NASDAQ: HFBL)는 2024년 3분기에 순이익이 $941,000으로 2023년 3분기 $1.2백만에서 감소했다고 보고했습니다. 회사의 주당 순이익은 $0.40에서 $0.31로 감소했습니다. 이 감소는 주로 순이자 수익이 16.2% 감소하고 비이자 수익이 30.9% 감소한 데 기인합니다. 총 자산은 $9.1백만 감소하여 $628.4백만에 이르렀고, 순 대출 금액은 $16.9백만 감소하여 $454.0백만에 이르렀습니다. 회사의 순이자 마진은 전년도 3.37%에서 2.98%로 축소되었습니다.

Home Federal Bancorp (NASDAQ: HFBL) a annoncé un revenu net de 941 000 dollars pour le troisième trimestre 2024, en baisse par rapport à 1,2 million de dollars au troisième trimestre 2023. Les bénéfices par action de l'entreprise ont diminué à 0,31 dollar contre 0,40 dollar. Ce déclin est principalement dû à une baisse de 16,2 % des revenus d'intérêts nets et à une réduction de 30,9 % des revenus non liés aux intérêts. Les actifs totaux ont diminué de 9,1 millions de dollars pour atteindre 628,4 millions de dollars, tandis que les prêts nets ont baissé de 16,9 millions de dollars pour atteindre 454,0 millions de dollars. La marge d'intérêt nette de l'entreprise s'est contractée à 2,98 % contre 3,37 % l'année précédente.

Home Federal Bancorp (NASDAQ: HFBL) berichtete über ein Nettoeinkommen von $941.000 für das 3. Quartal 2024, ein Rückgang von $1,2 Millionen im 3. Quartal 2023. Der Gewinn pro Aktie des Unternehmens sank von $0,40 auf $0,31. Der Rückgang war hauptsächlich auf einen Rückgang der Netzincome um 16,2% und der Nichtzinsen um 30,9% zurückzuführen. Die gesamten Vermögenswerte verringerten sich um $9,1 Millionen auf $628,4 Millionen, während die Nettokredite um $16,9 Millionen auf $454,0 Millionen sanken. Die Nettozinsmarge des Unternehmens sank von 3,37% auf 2,98% im Jahresvergleich.

Positive
  • Shareholders' equity increased by $1.5 million (2.8%) to $54.3 million
  • Non-performing assets decreased to $1.9 million from $2.0 million
  • Cash and cash equivalents increased by $6.1 million (17.4%) to $41.0 million
Negative
  • Net income decreased by 21.6% year-over-year to $941,000
  • Net interest income declined by 16.2%
  • Net interest margin contracted to 2.98% from 3.37%
  • Total assets decreased by $9.1 million (1.4%)
  • Net loans receivable decreased by $16.9 million (3.6%)

Insights

The Q3 2024 results reveal concerning trends for Home Federal Bancorp. Net income dropped to $941,000 from $1.2 million year-over-year, with EPS declining to $0.31 from $0.39. The bank's net interest margin contracted significantly to 2.98% from 3.37%, reflecting pressure on profitability.

Key challenges include a 16.2% decrease in net interest income and rising funding costs, with total interest expense up 18.8%. The loan portfolio contracted by 3.6% to $454.0 million, while deposits decreased by 1.6% to $564.6 million. Asset quality remains stable with non-performing assets at $1.9 million.

The deposit mix shift indicates competitive pressures in the local market. High-cost certificates of deposit decreased by 8.2%, while lower-cost savings deposits increased by 12.0%, suggesting strategic efforts to optimize funding costs. However, the 1.4% reduction in total assets and 3.6% decline in net loans point to challenging growth conditions in the northwest Louisiana market.

The increased cash position of $41.0 million, up 17.4%, provides liquidity buffer but may impact earnings potential given the yield differential between cash and loans.

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 
  Average
Balance
  Average
Yield/Rate
  Average
Balance
  Average
Yield/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 Ended
September 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.

FAQ

What was Home Federal Bancorp's (HFBL) net income for Q3 2024?

Home Federal Bancorp reported net income of $941,000 for the three months ended September 30, 2024.

How much did HFBL's earnings per share decrease in Q3 2024?

HFBL's earnings per share decreased to $0.31 in Q3 2024 from $0.40 in Q3 2023.

What was HFBL's net interest margin in Q3 2024?

HFBL's net interest margin was 2.98% for Q3 2024, compared to 3.37% for Q3 2023.

How much did HFBL's total assets change in Q3 2024?

Total assets decreased by $9.1 million (1.4%) from $637.5 million to $628.4 million in Q3 2024.

Home Federal Bancorp, Inc. of Louisiana

NASDAQ:HFBL

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Banks - Regional
Savings Institution, Federally Chartered
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United States of America
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