Advertisement
Australia markets open in 30 minutes
  • ALL ORDS

    7,908.10
    +8.90 (+0.11%)
     
  • AUD/USD

    0.6541
    -0.0022 (-0.33%)
     
  • ASX 200

    7,652.80
    +9.20 (+0.12%)
     
  • OIL

    77.60
    +1.11 (+1.45%)
     
  • GOLD

    2,040.90
    -8.50 (-0.41%)
     
  • Bitcoin AUD

    83,415.42
    +4,128.16 (+5.21%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2023

Home Federal Bancorp, Inc. of Louisiana
Home Federal Bancorp, Inc. of Louisiana

Shreveport, Louisiana, Oct. 30, 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 September 30, 2023, of $1.2 million compared to net income of $1.7 million reported for the three months ended September 30, 2022. The Company’s basic and diluted earnings per share were $0.40 and $0.39, respectively, for the three months ended September 30, 2023, compared to basic and diluted earnings per share of $0.55 and $0.52, respectively, for the three months ended September 30, 2022.

The Company reported the following highlights during the three months ended September 30, 2023:

  • Total loans receivable, net for the three months ended September 30, 2023 increased $17.1 million, or 3.5%, to $506.6 million at September 30, 2023, compared to $489.5 million at June 30, 2023.

  • The Company’s average interest rate spread was 2.68% for the three months ended September 30, 2023, compared to 3.74% for the three months ended September 30, 2022.

  • The Company’s net interest margin was 3.37% for the three months ended September 30, 2023, compared to 3.90% for the three months ended September 30, 2022.

  • Basic earnings per share decreased $0.15, or 27.3%, from $0.55 for the three months ended September 30, 2022, compared to $0.40 for the three months ended September 30, 2023.

  • Diluted earnings per share decreased $0.13 or 25.0%, from $0.52 for the three months ended September 30, 2022, compared to $0.39 for the three months ended September 30, 2023.

  • Nonperforming assets totaled $1.8 million, or 0.28% of total assets at September 30, 2023 compared to $1.6 million, or 0.24% of total assets, at June 30, 2023.

The decrease in net income for the three months ended September 30, 2023, as compared to the prior year quarter resulted primarily from an increase of $435,000, or 11.6%, in non-interest expense, an increase of $301,000 in provision for income taxes, a decrease of $112,000, or 20.5%, in non-interest income, and a decrease of $21,000, or 0.4% in net interest income, partially offset by a decrease of $418,000, or 100.0% in the provision for credit losses. The decrease in net interest income for the three months ended September 30, 2023, was primarily due to a $2.3 million, or 486.1%, increase in total interest expense, partially offset by an increase of $2.3 million, or 39.7%, in total interest income. The Company’s average interest rate spread was 2.68% for the three months ended September 30, 2023, compared to 3.74% for the three months ended September 30, 2022. The Company’s net interest margin was 3.37% for the three months ended September 30, 2023, compared to 3.90% for the three months ended September 30, 2022.

ASU 2016-13, Financial Instruments – Credit Losses (Topic 326):Measurement of Credit Losses on Financial Instruments. On July 1, 2023, the Company adopted the CECL methodology for estimating credit losses. This resulted in a $189,000 increase to the allowance for credit losses and a one-time cumulative adjustment resulted in a $149,000, net of tax, decrease to stockholders’ equity. For purchased credit deteriorated loans, the Company applied the guidance under CECL using the prospective transition approach. As a result, the Company adjusted the amortized cost basis of the purchased credit deteriorated loans by $170,000 to reclassify the purchase discount to the allowance for credit losses on July 1, 2023. The ACL account increased $359,000 from these two transactions. No provision expense was recorded in the first quarter of 2024. As of September 30, 2023, the ACL was $5.1 million, and the ratio of ACL to gross loans was 1.00%. As of June 30, 2023, the ACL was $5.2 million, and the ratio of ACL to gross loans was 1.05%.

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,

 

 

 

2023

 

 

2022

 

 

 

Average
Balance

 

 

Average
Yield/Rate

 

 

Average
Balance

 

 

Average
Yield/Rate

 

 

 

(Dollars in thousands)

 

Interest-earning assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans receivable

 

$

498,242

 

 

 

5.79

%

 

$

396,768

 

 

 

5.03

%

Investment securities

 

 

113,584

 

 

 

2.18

 

 

 

110,602

 

 

 

1.76

 

Interest-earning deposits

 

 

10,066

 

 

 

6.98

 

 

 

32,706

 

 

 

3.18

 

Total interest-earning assets

 

$

621,892

 

 

 

5.15

%

 

$

540,076

 

 

 

4.25

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Savings accounts

 

$

78,572

 

 

 

0.38

%

 

$

128,749

 

 

 

0.26

%

NOW accounts

 

 

55,900

 

 

 

0.48

 

 

 

58,658

 

 

 

0.11

 

Money market accounts

 

 

108,891

 

 

 

2.26

 

 

 

94,694

 

 

 

0.15

 

Certificates of deposit

 

 

194,785

 

 

 

3.73

 

 

 

84,715

 

 

 

1.24

 

Total interest-bearing deposits

 

 

438,148

 

 

 

2.47

 

 

 

366,816

 

 

 

0.43

 

Other bank borrowings

 

 

8,654

 

 

 

8.39

 

 

 

4,915

 

 

 

5.33

 

FHLB advances

 

 

1,138

 

 

 

5.23

 

 

 

826

 

 

 

4.80

 

Total interest-bearing liabilities

 

$

447,940

 

 

 

2.47

%

 

$

372,557

 

 

 

0.51

%


The $112,000 decrease in non-interest income for the three months ended September 30, 2023, compared to the prior year quarterly period, was primarily due to a decrease of $137,000 in gain on sale of loans, and a $34,000 increase in loss on sale of real estate and fixed assets, partially offset by a $56,000 increase in service charges on deposit accounts, and an increase of $3,000 in other non-interest income. The decrease in gain on sale of loans for the quarter ended September 30, 2023, was primarily due to a decrease in refinance activity causing a decrease in mortgage loan originations. In addition, in recent periods the Company has increased its originations of adjustable rate mortgages for portfolio rather than for sale in the secondary market.

The $435,000 increase in non-interest expense for the three months ended September 30, 2023, compared to the same period in 2022, is primarily attributable to increases of $94,000 in amortization of core deposit intangible expense, $74,000 in compensation and benefits expense, $69,000 in advertising expense, $64,000 in data processing expense, $48,000 in occupancy and equipment expense, $44,000 in deposit insurance premium expense, $37,000 in franchise and bank shares tax expense, $34,000 in professional fees, $27,000 in audit and examination fees, and $8,000 in loan and collection expense. The increases were partially offset by a decrease of $64,000 in other non-interest expense.

At September 30, 2023, the Company reported total assets of $662.6 million, an increase of $1.7 million, or 0.3%, compared to total assets of $660.9 million at June 30, 2023. The increase in assets was comprised primarily of increases in loans receivable, net of $17.1 million, or 3.5%, from $489.5 million at June 30, 2023 to $506.6 million at September 30, 2023, loans-held-for-sale of $585,000, from $4,000 at June 30, 2023 to $589,000 at September 30, 2023, premises and equipment of $417,000, or 2.5%, from $16.6 million at June 30, 2023 to $17.0 million at September 30, 2023, real estate owned of $193,000, or 52.4% from $368,000 at June 30, 2023 to $561,000 at September 30, 2023, deferred tax asset of $147,000, or 11.2%, from $1.3 million at June 30, 2023 to $1.5 million at September 30, 2023, accrued interest receivable of $117,000, or 6.5%, from $1.8 million at June 30, 2023 to $1.9 million at September 30, 2023, and bank owned life insurance of $25,000, or 0.4%, from $6.70 million at June 30, 2023 to $6.73 million at September 30, 2023. These increases were partially offset by decreases in cash and cash equivalents of $15.9 million, or 64.2%, from $24.8 million at June 30, 2023 to $8.9 million at September 30, 2023, investment securities of $759,000, or 0.7%, from $114.0 million at June 30, 2023 to $113.2 million at September 30, 2023, other assets of $163,000, or 11.4%, from $1.4 million at June 30, 2023 to $1.3 million at September 30, 2023, and core deposit intangible of $94,000, or 6.1%, from $1.5 million at June 30, 2023 to $1.4 million at September 30, 2023. The decrease in cash and cash equivalents was primarily due to the funding of additional loan growth.

The decrease in held to maturity securities was due to $1.6 million in principal payments. The increase in loans held-for-sale primarily reflected an increase in loans originated for sale during the three months ended September 30, 2023.

Total liabilities increased $1.8 million, or 0.3%, from $610.4 million at June 30, 2023 to $612.1 million at September 30, 2023. The increase in liabilities was comprised primarily of increases in advances from FHLB of $4.6 million from none at June 30, 2022, other accrued expenses and liabilities of $1.6 million, or 39.7%, to $5.5 million at September 30, 2023 compared to $3.9 million at June 30, 2023, other borrowings of $300,000, or 3.5%, to $8.9 million at September 30, 2023 compared to $8.6 million at June 30, 2023, and advances from borrowers for taxes and insurance of $161,000, or 29.1%, to $715,000 at September 30, 2023 compared to $554,000 at June 30, 2023. The increases were partially offset by a decrease in total deposits of $4.9 million, or 0.8%, to $592.5 million at September 30, 2023 compared to $597.4 million at September 30, 2023. The decrease in deposits was primarily due to a decrease of $9.6 million, or 8.4%, in money market deposits from $114.2 million at June 30, 2023 to $104.6 million at September 30, 2023, a decrease of $6.1 million, or 7.5%, in savings deposits from $81.9 million at June 30, 2023 to $75.7 million at September 30, 2023, a decrease of $1.7 million, or 2.6%, in NOW accounts from $65.3 million at June 30, 2023 to $63.6 million at September 30, 2023, partially offset by an increase of $12.1 million, or 6.37%, in certificates of deposit from $190.4 million at June 30, 2023 to $202.5 million at September 30, 2023 and an increase of $504,000, or 0.4%, in non-interest deposits from $145.6 million at June 30, 2023 to $146.1 million at September 30, 2023. The Company had $3.0 million in brokered deposits at both September 30, 2023 and June 30, 2023.

At September 30, 2023, 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 $1.6 million on non-performing assets at June 30, 2023, consisting of five single-family residential loans, six commercial non-real estate loans, three consumer loans, two home equity line-of-credit loans, and three single-family residence loans in real estate owned at September 30, 2023, compared to seven single-family residential loans, three commercial non-real estate loans, one consumer loan and two single-family residences in other real estate owned at June 30, 2023. At September 30, 2023 the Company had seven single family residential loans, seven commercial non-real-estate loans, three home-equity line-of-credit loans, two commercial real estate loans, and one auto loan compared to ten single family residential loans, three commercial non-real-estate loans, two commercial real estate loans, and three home equity line-of-credit loans classified as substandard at June 30, 2023. There were no loans classified as doubtful at September 30, 2023 or June 30, 2023.

Shareholders’ equity decreased $69,000, or 0.1%, to $50.47 million at September 30, 2023 from $50.54 million at June 30, 2023. The primary reasons for the changes in shareholders’ equity from June 30, 2023 were a decrease in the Company’s accumulated other comprehensive income of $812,000, dividends paid totaling $392,000, and CECL implementation totaling $189,000, partially offset by net income of $1.2 million, and the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $105,000,

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)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

September 30, 2023

 

 

June 30, 2023

 

 

 

(Unaudited)

 

 

(Audited)

 

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $1,557 and $22,215 September 30, 2023 and June 30, 2023, Respectively)

 

$

8,878

 

 

$

24,765

 

Securities Available-for-Sale (amortized cost September 30, 2023: $36,178; June 30, 2023: $42,910, Respectively)

 

 

40,409

 

 

 

39,551

 

Securities Held-to-Maturity (fair value September 30, 2023: $57,557; June 30, 2023: $61,222, Respectively)

 

 

72,806

 

 

 

74,423

 

Loans Held-for-Sale

 

 

589

 

 

 

4

 

Loans Receivable, Net of Allowance for Credit Losses (September 30, 2023:
$5,102; June 30, 2023: $5,173, Respectively)

 

 

506,599

 

 

 

489,493

 

Accrued Interest Receivable

 

 

1,907

 

 

 

1,790

 

Premises and Equipment, Net

 

 

16,978

 

 

 

16,561

 

Bank Owned Life Insurance

 

 

6,725

 

 

 

6,700

 

Goodwill

 

 

2,990

 

 

 

2,990

 

Core Deposit Intangible

 

 

1,439

 

 

 

1,533

 

Deferred Tax Asset

 

 

1,460

 

 

 

1,313

 

Real Estate Owned

 

 

561

 

 

 

368

 

Other Assets

 

 

1,261

 

 

 

1,424

 

 

 

 

 

 

 

 

 

 

Total Assets

 

$

662,602

 

 

$

660,915

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND SHAREHOLDERS EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

Non-interest bearing

 

$

146,057

 

 

$

145,553

 

Interest-bearing

 

 

446,448

 

 

 

451,808

 

Total Deposits

 

 

592,505

 

 

 

597,361

 

Advances from Borrowers for Taxes and Insurance

 

 

715

 

 

 

554

 

Short-term Federal Home Loan Bank Advances

 

 

4,600

 

 

 

--

 

Other Borrowings

 

 

8,850

 

 

 

8,550

 

Other Accrued Expenses and Liabilities

 

 

5,459

 

 

 

3,908

 

 

 

 

 

 

 

 

 

 

Total Liabilities

 

 

612,129

 

 

 

610,373

 

 

 

 

 

 

 

 

 

 

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: 3,133,351 and 3,133,351 Shares Issued and

 

 

 

 

 

 

 

 

Outstanding at September 30, 2023 and June 30, 2023, Respectively

 

 

31

 

 

 

31

 

Additional Paid-in Capital

 

 

41,057

 

 

 

40,981

 

Unearned ESOP Stock

 

 

(495

)

 

 

(523

)

Retained Earnings

 

 

13,346

 

 

 

12,707

 

Accumulated Other Comprehensive Loss

 

 

(3,466

)

 

 

(2,654

)

 

 

 

 

 

 

 

 

 

Total Shareholders Equity

 

 

50,473

 

 

 

50,542

 

 

 

 

 

 

 

 

 

 

TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY

 

$

662,602

 

 

$

660,915

 


Home Federal Bancorp, Inc. of Louisiana
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
(Unaudited)

 

 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

 

(Unaudited)

 

 

(Unaudited)

 

Interest income

 

 

 

 

 

 

 

 

Loans, including fees

 

$

7,274

 

 

$

5,028

 

Investment securities

 

 

150

 

 

 

2

 

Mortgage-backed securities

 

 

473

 

 

 

489

 

Other interest-earning assets

 

 

177

 

 

 

262

 

Total interest income

 

 

8,074

 

 

 

5,781

 

Interest expense

 

 

 

 

 

 

 

 

Deposits

 

 

2,592

 

 

 

400

 

Federal Home Loan Bank borrowings

 

 

15

 

 

 

10

 

Other bank borrowings

 

 

183

 

 

 

66

 

Total interest expense

 

 

2,790

 

 

 

476

 

Net interest income

 

 

5,284

 

 

 

5,305

 

 

 

 

 

 

 

 

 

 

Provision for credit losses

 

 

--

 

 

 

418

 

Net interest income after provision for credit losses

 

 

5,284

 

 

 

4,887

 

 

 

 

 

 

 

 

 

 

Non-interest income

 

 

 

 

 

 

 

 

Gain on sale of loans

 

 

38

 

 

 

175

 

Loss on sale of real estate and fixed assets

 

 

(34

)

 

 

--

 

Income on Bank-Owned Life Insurance

 

 

26

 

 

 

26

 

Service charges on deposit accounts

 

 

391

 

 

 

335

 

Other income

 

 

13

 

 

 

10

 

 

 

 

 

 

 

 

 

 

Total non-interest income

 

 

434

 

 

 

546

 

 

 

 

 

 

 

 

 

 

Non-interest expense

 

 

 

 

 

 

 

 

Compensation and benefits

 

 

2,356

 

 

 

2,282

 

Occupancy and equipment

 

 

549

 

 

 

501

 

Data processing

 

 

245

 

 

 

181

 

Audit and examination fees

 

 

102

 

 

 

75

 

Franchise and bank shares tax

 

 

156

 

 

 

119

 

Advertising

 

 

143

 

 

 

74

 

Professional fees

 

 

160

 

 

 

126

 

Loan and collection

 

 

60

 

 

 

52

 

Amortization Core Deposit Intangible

 

 

94

 

 

 

--

 

Deposit insurance premium

 

 

91

 

 

 

47

 

Other expenses

 

 

232

 

 

 

296

 

 

 

 

 

 

 

 

 

 

Total non-interest expense

 

 

4,188

 

 

 

3,753

 

 

 

 

 

 

 

 

 

 

Income before income taxes

 

 

1,530

 

 

 

1,680

 

Provision for income tax expense

 

 

310

 

 

 

9

 

 

 

 

 

 

 

 

 

 

NET INCOME

 

$

1,220

 

 

$

1,671

 

 

 

 

 

 

 

 

 

 

EARNINGS PER SHARE

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

$

0.40

 

 

$

0.55

 

Diluted

 

$

0.39

 

 

$

0.52

 


 

 

Three Months Ended

 

 

 

September 30,

 

 

 

2023

 

 

2022

 

 

 

 

 

 

 

 

 

 

Selected Operating Ratios(1):

 

 

 

 

 

 

 

 

Average interest rate spread

 

 

2.68

%

 

 

3.74

%

Net interest margin

 

 

3.37

%

 

 

3.90

%

Return on average assets

 

 

0.73

%

 

 

1.13

%

Return on average equity

 

 

9.46

%

 

 

13.99

%

 

 

 

 

 

 

 

 

 

Asset Quality Ratios(2):

 

 

 

 

 

 

 

 

Non-performing assets as a percent of total assets

 

 

0.28

%

 

 

0.38

%

Allowance for credit losses as a percent of non-performing loans

 

 

403.96

%

 

 

229.97

%

Allowance for credit losses as a percent of total loans receivable

 

 

1.00

%

 

 

1.18

%

 

 

 

 

 

 

 

 

 

Per Share Data:

 

 

 

 

 

 

 

 

Shares outstanding at period end

 

 

3,133,351

 

 

 

3,108,145

 

Weighted average shares outstanding:

 

 

 

 

 

 

 

 

Basic

 

 

3,028,597

 

 

 

3,065,552

 

Diluted

 

 

3,107,834

 

 

 

3,227,418

 

____________________________________________

 

 

 

 

 

 

 

 

(1) Ratios for the three month periods are annualized.

 

 

 

 

 

 

 

 

(2) Asset quality ratios are end of period ratios.

 

 

 

 

 

 

 

 

  

CONTACT: James R. Barlow Chairman of the Board, President and Chief Executive Officer (318) 222-1145