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