HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2023
Shreveport, Louisiana, April 28, 2023 (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, 2023, of
The Company reported the following during the nine months ended March 31, 2023:
- On February 1st, the Company completed the acquisition of Northwest Bancshares Corporation (“NWB”) and its wholly-owned subsidiary, First National Bank of Benton (“FNBB). As of February 1st FNBB reported
$83.4 million in assets,$77.3 million in liabilities and$6.1 million in equity. - Total loans receivable, net of allowance for loan losses for the nine months ended March 31, 2023, increased
$98.5 million , or25.4% , to$486.4 million at March 31, 2023, compared to$387.9 million at June 30, 2022. FNBB had$53.3 million of loans receivable at March 31, 2023. - Total deposits without the deposits acquired in the acquisition of First National Bank of Benton for the nine months ended March 31, 2023, increased
$18.3 million , or3.5% , to$536.5 million at March 31, 2023, compared to$518.2 million at June 30, 2022. - The third quarter of fiscal 2023 included merger related expenses totaling
$450,000 , net of taxes, relating to our acquisition of Northwest Bancshares Corporation and its wholly-owned subsidiary, FNBB on February 1, 2023. - Basic earnings per share increased
$0.30 , or25.4% , from$1.18 for the nine months ended March 31, 2022, compared to$1.48 for the nine months ended March 31, 2023. Basic earnings per share would have been$0.15 higher without the merger related expenses incurred during the nine months ended March 31, 2023. - Diluted earnings per share increased
$0.31 or28.2% , from$1.10 for the nine months ended March 31, 2022, compared to$1.41 for the nine months ended March 31, 2023. Diluted earnings per share would have been$0.14 higher without the merger related expenses incurred during the nine months ended March 31, 2023.
The decrease in net income for the three months ended March 31, 2023, as compared to the prior year quarter resulted primarily from a
The increase in net income for the nine months ended March 31, 2023 resulted primarily from a
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, | |||||||||||
2023 | 2022 | ||||||||||
Average | Average | Average | Average | ||||||||
Balance | Yield/Rate | Balance | Yield/Rate | ||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable | $ | 476,721 | 5.23 | % | $ | 365,277 | 4.75 | % | |||
Investment securities | 120,852 | 1.99 | 102,549 | 1.50 | |||||||
Interest-earning deposits | 25,867 | 4.22 | 61,733 | 0.23 | |||||||
Total interest-earning assets | $ | 623,440 | 4.56 | $ | 529,559 | 3.59 | |||||
Interest-bearing liabilities: | |||||||||||
Savings accounts | $ | 99,252 | 0.31 | % | $ | 138,742 | 0.28 | % | |||
NOW accounts | 70,064 | 0.26 | 53,980 | 0.11 | |||||||
Money market accounts | 121,256 | 1.27 | 94,986 | 0.12 | |||||||
Certificates of deposit | 141,358 | 2.42 | 80,850 | 1.29 | |||||||
Total interest-bearing deposits | 431,930 | 1.26 | 368,558 | 0.43 | |||||||
Other bank borrowings | 7,513 | 7.88 | 2,400 | 3.35 | |||||||
FHLB advances | 4,313 | 4.89 | 844 | 4.90 | |||||||
Total interest-bearing liabilities | $ | 443,756 | 1.41 | % | $ | 371,802 | 0.46 | % | |||
For the Nine Months Ended March 31, | |||||||||||
2023 | 2022 | ||||||||||
Average | Average | Average | Average | ||||||||
Balance | Yield/Rate | Balance | Yield/Rate | ||||||||
(Dollars in thousands) | |||||||||||
Interest-earning assets: | |||||||||||
Loans receivable | $ | 423,451 | 5.22 | % | $ | 355,732 | 4.86 | % | |||
Investment securities | 111,448 | 1.88 | 95,141 | 1.49 | |||||||
Interest-earning deposits | 23,950 | 4.00 | 78,223 | 0.17 | |||||||
Total interest-earning assets | $ | 558,849 | 4.50 | $ | 529,096 | 3.56 | % | ||||
Interest-bearing liabilities: | |||||||||||
Savings accounts | $ | 111,948 | 0.28 | % | $ | 136,102 | 0.30 | % | |||
NOW accounts | 61,509 | 0.22 | 49,972 | 0.11 | |||||||
Money market accounts | 100,919 | 0.67 | 89,624 | 0.12 | |||||||
Certificates of deposit | 108,211 | 1.89 | 91,642 | 1.41 | |||||||
Total interest-bearing deposits | 382,587 | 0.83 | 367,340 | 0.51 | |||||||
Other bank borrowings | 6,274 | 6.82 | 1,892 | 3.24 | |||||||
FHLB advances | 1,969 | 4.87 | 853 | 4.84 | |||||||
Total interest-bearing liabilities | $ | 390,830 | 0.95 | % | $ | 370,085 | 0.53 | % |
The
The
At March 31, 2023, the Company reported total assets of
Total liabilities increased
At March 31, 2023, the Company had
Shareholders’ equity decreased
The Company repurchased 291,000 shares of its common stock during the nine months ended March 31, 2023 at an average price per share of
Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its nine 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 STATEMENTS OF FINANCIAL CONDITION (In thousands) | |||||||
March 31, | June 30, | ||||||
2023 | 2022 | ||||||
ASSETS | (Unaudited) | (Audited) | |||||
Cash and Cash Equivalents (Includes Interest-Bearing | |||||||
Deposits with Other Banks of | |||||||
and June 30, 2022, Respectively) | $ | 45,568 | $ | 64,078 | |||
Securities Available-for-Sale | 44,756 | 28,099 | |||||
Securities Held-to-Maturity (fair value March 31, 2023: | |||||||
June 30, 2022: | 75,812 | 79,950 | |||||
Loans Held-for-Sale | 1,160 | 3,978 | |||||
Loans Receivable, Net of Allowance for Loan Losses (March 31, 2023: | |||||||
486,394 | 387,873 | ||||||
Accrued Interest Receivable | 1,620 | 1,124 | |||||
Premises and Equipment, Net | 16,598 | 16,249 | |||||
Bank Owned Life Insurance | 6,674 | 6,597 | |||||
Goodwill | 2,990 | -- | |||||
Core Deposit Intangible | 1,636 | -- | |||||
Deferred Tax Asset | 1,096 | 1,143 | |||||
Real Estate Owned | 311 | -- | |||||
Other Assets | 1,370 | 1,389 | |||||
Total Assets | $ | 685,985 | $ | 590,480 | |||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
LIABILITIES | |||||||
Deposits: | |||||||
Non-interest bearing | $ | 163,598 | $ | 161,142 | |||
Interest-bearing | 450,776 | 370,849 | |||||
Total Deposits | 614,374 | 531,991 | |||||
Advances from Borrowers for Taxes and Insurance | 276 | 354 | |||||
Short-term Federal Home Loan Bank Advances | 10,000 | 832 | |||||
Other Borrowings | 8,250 | 2,350 | |||||
Other Accrued Expenses and Liabilities | 2,962 | 2,606 | |||||
Total Liabilities | 635,862 | 538,133 | |||||
SHAREHOLDERS’ EQUITY | |||||||
Preferred Stock - | |||||||
Authorized; None Issued and Outstanding | -- | -- | |||||
Common Stock - | |||||||
Authorized: 3,123,651 and 3,387,839 Shares Issued and | |||||||
Outstanding at March 31, 2023 and June 30, 2022, Respectively | 34 | 34 | |||||
Additional Paid-in Capital | 40,791 | 40,145 | |||||
Unearned ESOP Stock | (552 | ) | (639 | ) | |||
Retained Earnings | 11,824 | 14,506 | |||||
Accumulated Other Comprehensive Loss | (1,974 | ) | (1,699 | ) | |||
Total Shareholders’ Equity | 50,123 | 52,347 | |||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | $ | 685,985 | $ | 590,480 |
Home Federal Bancorp, Inc. of Louisiana CONSOLIDATED STATEMENTS OF INCOME (In thousands, except per share data) (Unaudited) | |||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||
March 31, | March 31, | ||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||
Interest income | |||||||||||||
Loans, including fees | $ | 6,151 | $ | 4,277 | $ | 16,585 | $ | 12,985 | |||||
Investment securities | 100 | -- | 105 | -- | |||||||||
Mortgage-backed securities | 492 | 380 | 1,472 | 1,066 | |||||||||
Other interest-earning assets | 270 | 35 | 720 | 101 | |||||||||
Total interest income | 7,013 | 4,692 | 18,882 | 14,152 | |||||||||
Interest expense | |||||||||||||
Deposits | 1,342 | 394 | 2,387 | 1,397 | |||||||||
Federal Home Loan Bank borrowings | 52 | 10 | 72 | 31 | |||||||||
Other bank borrowings | 146 | 20 | 321 | 46 | |||||||||
Total interest expense | 1,540 | 424 | 2,780 | 1,474 | |||||||||
Net interest income | 5,473 | 4,268 | 16,102 | 12,678 | |||||||||
Provision for loan losses | 150 | -- | 718 | 61 | |||||||||
Net interest income after provision for loan losses | 5,323 | 4,268 | 15,384 | 12,617 | |||||||||
Non-interest income | |||||||||||||
Gain on sale of loans | 87 | 327 | 404 | 1,747 | |||||||||
Gain/(Loss) on sale of real estate and fixed assets | 4 | (48 | ) | 4 | (48 | ) | |||||||
Income on Bank-Owned Life Insurance | 25 | 27 | 77 | 82 | |||||||||
Service charges on deposit accounts | 380 | 289 | 1,074 | 838 | |||||||||
Other income | 12 | 241 | 35 | 269 | |||||||||
Total non-interest income | 508 | 836 | 1,594 | 2,888 | |||||||||
Non-interest expense | |||||||||||||
Compensation and benefits | 2,319 | 2,194 | 6,694 | 6,710 | |||||||||
Occupancy and equipment | 541 | 449 | 1,540 | 1,320 | |||||||||
Data processing | 163 | 149 | 564 | 534 | |||||||||
Audit and examination fees | 82 | 102 | 243 | 293 | |||||||||
Franchise and bank shares tax | 145 | 132 | 386 | 403 | |||||||||
Advertising | 97 | 88 | 238 | 233 | |||||||||
Professional fees | 885 | 135 | 1,085 | 458 | |||||||||
Loan and collection | 34 | 44 | 148 | 184 | |||||||||
Amortization Core Deposit Intangible | 71 | -- | 71 | -- | |||||||||
Deposit insurance premium | 49 | 38 | 150 | 114 | |||||||||
Other expenses | 112 | 227 | 690 | 529 | |||||||||
Total non-interest expense | 4,498 | 3,558 | 11,809 | 10,778 | |||||||||
Income before income taxes | 1,333 | 1,546 | 5,169 | 4,727 | |||||||||
Provision for income tax expense | 271 | 269 | 723 | 922 | |||||||||
NET INCOME | $ | 1,062 | $ | 1,277 | $ | 4,446 | $ | 3,805 | |||||
EARNINGS PER SHARE | |||||||||||||
Basic | $ | 0.35 | $ | 0.39 | $ | 1.48 | $ | 1.18 | |||||
Diluted | $ | 0.34 | $ | 0.37 | $ | 1.41 | $ | 1.10 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, | March 31, | ||||||||||||||
2023 | 2022 | 2023 | 2022 | ||||||||||||
Selected Operating Ratios(1): | |||||||||||||||
Average interest rate spread | 3.15 | % | 3.13 | % | 3.55 | % | 3.03 | % | |||||||
Net interest margin | 3.56 | % | 3.27 | % | 3.84 | % | 3.19 | % | |||||||
Return on average assets | 0.65 | % | 0.91 | % | 0.99 | % | 0.89 | % | |||||||
Return on average equity | 8.18 | % | 9.88 | % | 12.24 | % | 9.61 | % | |||||||
Asset Quality Ratios(2): | |||||||||||||||
Non-performing assets as a percent of total assets | 0.39 | % | 0.06 | % | 0.39 | % | 0.06 | % | |||||||
Allowance for loan losses as a percent of non-performing loans | 208.49 | % | 1,224.37 | % | 208.49 | % | 1,224.37 | % | |||||||
Allowance for loan losses as a percent of total loans receivable | 1.00 | % | 1.14 | % | 1.00 | % | 1.14 | % | |||||||
Per Share Data: | |||||||||||||||
Shares outstanding at period end | 3,123,651 | 3,400,839 | 3,123,651 | 3,400,839 | |||||||||||
Weighted average shares outstanding: | |||||||||||||||
Basic | 3,005,886 | 3,273,680 | 3,013,259 | 3,235,967 | |||||||||||
Diluted | 3,132,312 | 3,465,193 | 3,155,518 | 3,462,887 |
__________________
(1) Ratios for the three and nine month periods are annualized.
(2) Asset quality ratios are end of period ratios.
Non-GAAP Reconciliation | Three Months Ended | Nine Months Ended | |||
March 31, 2023 | March 31, 2023 | ||||
(dollars in thousands, except per share data) | |||||
Reported noninterest expense | $ | 4,498 | $ | 4,498 | |
Less: Merger-related expense | 570 | 570 | |||
Adjusted noninterest expense | 3,928 | 3,928 | |||
Reported Net Income | 1,062 | 4,446 | |||
Add: Merger related expenses, net tax | 450 | 450 | |||
Adjusted net income | 1,512 | 4,896 | |||
Diluted EPS | $ | 0.34 | $ | 1.41 | |
Add: Merger related expenses, net tax | $ | 0.14 | $ | 0.14 | |
Adjusted diluted EPS | $ | 0.48 | $ | 1.55 | |
Return on average assets | $ | 0.65 | $ | 0.99 | |
Add: Merger related expenses, net tax | $ | 0.27 | $ | 0.10 | |
Adjusted return on average assets | $ | 0.92 | $ | 1.09 | |
Tangible book value at period end |