EX-99.1 2 ex_809596.htm EXHIBIT 99.1 ex_809596.htm

EXHIBIT 99.1

 

 

 

homefedlogo.jpg

 

 

FOR RELEASE: Thursday, May 1, 2025 at 4:30 PM (Eastern)

 

HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS

FOR THE THREE AND NINE MONTHS ENDED MARCH 31, 2025

 

     Shreveport, Louisiana – May 1, 2025 – 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, 2025, of $748,000 compared to net income of $732,000 reported for the three months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.24 for the three months ended March 31, 2025 and for the three months ended March 31, 2024. The Company reported net income of $2.7 million for the nine months ended March 31, 2025, compared to $3.0 million for the nine months ended March 31, 2024. The Company’s basic and diluted earnings per share were $0.88 for the nine months ended March 31, 2025 compared to $0.97 and $0.95, respectively, for the nine months ended March 31, 2024.

 

 The Company reported the following highlights during the nine months ended March 31, 2025:

 

  ● 

Book value per share increased to $17.55 at March 31, 2025 from $16.80 at June 30, 2024.

  ● 

There were no advances from the FHLB at March 31, 2025 or June 30, 2024.

  ● 

Other borrowings totaled $4.0 million at March 31, 2025 compared to $7.0 million at June 30, 2024.

 

     The increase in net income for the three months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from an increase of $270,000, or 6.1%, in net interest income, an increase of $32,000, or 6.3%, in non-interest income, and a decrease of $5,000, or 45.5%, in the provision for credit losses, partially offset by an increase of $260,000, or 6.5%, in non-interest expense and an increase of $31,000, or 17.6%, in the provision for income taxes. The increase in net interest income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $735,000, or 21.1%, in total interest expense, partially offset by a decrease of $465,000, or 5.9%, in total interest income. The Company’s average interest rate spread was 2.66% for the three months ended March 31, 2025, compared to 2.16% for the three months ended March 31, 2024. The Company’s net interest margin was 3.33% for the three months ended March 31, 2025, compared to 2.89% for the three months ended March 31, 2024.

 

     The decrease in net income for the nine months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from a decrease of $891,000, or 6.1%, in net interest income and an increase of $102,000, or 35.2%, in the provision for income taxes, partially offset by a decrease of $331,000, or 2.7%, in non-interest expense, an increase of $248,000, or 23.0%, in non-interest income, and an increase of $167,000 in the recovery of credit losses. The decrease in net interest income for the nine months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $1.2 million, or 5.1%, in total interest income, partially offset by a decrease of $329,000, or 3.5%, in total interest expense. The Company’s average interest rate spread was 2.44% for the nine months ended March 31, 2025, compared to 2.46% for the nine months ended March 31, 2024. The Company’s net interest margin was 3.14% for the nine months ended March 31, 2025, and the nine months ended March 31, 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 March 31,

 
   

2025

   

2024

 
   

Average

Balance

   

Average

Yield/Rate

   

Average

Balance

   

Average

Yield/Rate

 
   

(Dollars in thousands)

 

Interest-earning assets:

                               

Loans receivable

  $ 459,828       5.94 %   $ 504,918       5.80 %

Investment securities

    95,706       2.44       104,646       2.21 %

Interest-earning deposits

    14,513       3.05       3,607       3.79 %

Total interest-earning assets

  $ 570,047       5.28 %   $ 613,171       5.18 %
                                 

Interest-bearing liabilities:

                               

Savings accounts

  $ 94,375       1.75 %   $ 69,178       0.62 %

NOW accounts

    69,562       1.15       68,170       0.58 %

Money market accounts

    75,882       2.01       89,313       2.60 %

Certificates of deposit

    182,721       3.76       222,534       4.36 %

Total interest-bearing deposits

    422,540       2.57       449,195       2.86 %

Other bank borrowings

    4,000       7.71       9,448       8.73 %

FHLB advances

    -       -       5,956       5.87 %

Total interest-bearing liabilities

  $ 426,540       2.62 %   $ 464,599       3.02 %

 

   

For the Nine months ended March 31,

 
   

2025

   

2024

 
   

Average

Balance

   

Average

Yield/Rate

   

Average

Balance

   

Average

Yield/Rate

 
   

(Dollars in thousands)

 

Interest-earning assets:

                               

Loans receivable

  $ 460,972       5.90 %   $ 503,664       5.80 %

Investment securities

    96,395       2.24       109,255       2.38 %

Interest-earning deposits

    23,326       4.45       5,060       3.55  

Total interest-earning assets

  $ 580,693       5.24 %   $ 617,979       5.18 %
                                 

Interest-bearing liabilities:

                               

Savings accounts

  $ 89,171       1.69 %   $ 73,676       0.46 %

NOW accounts

    71,022       1.17       67,145       0.47 %

Money market accounts

    76,828       2.20       98,021       2.44 %

Certificates of deposit

    191,936       4.04       209,985       4.05 %

Total interest-bearing deposits

    428,957       2.75       448,827       2.58 %

Other bank borrowings

    4,832       7.55       9,100       8.57 %

FHLB advances

    -       -       4,151       5.77 %

Total interest-bearing liabilities

  $ 433,789       2.80 %   $ 462,078       2.72 %

 

       The $32,000 increase in non-interest income for the three months ended March 31, 2025, compared to the prior year quarterly period, was primarily due to an increase of $27,000 in other non-interest income, an increase of $19,000 in service charges on deposit accounts, an increase of $11,000 in gain on sale of loans, and an increase of $1,000 in income on bank owned life insurance, partially offset by a decrease of $26,000 in gain on sale of securities. The $248,000 increase in non-interest income for the nine months ended March 31, 2025 compared to the prior year nine-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $115,000 in other non-interest income, an increase of $14,000 in service charges on deposit accounts, and an increase of $5,000 in income from bank owned life insurance, partially offset by an increase of $32,000 in loss on sale of securities, and a decrease of $3,000 in gain on sale of loans.

 

       The $260,000 increase in non-interest expense for the three months ended March 31, 2025, compared to the same period in 2024, is primarily attributable to increases of $414,000 in data processing expense, $77,000 in occupancy and equipment expense, $67,000 in audit and examination fees, $49,000 in professional fees, $40,000 in other non-interest expense, $15,000 in loan and collection expense, and $12,000 in deposit insurance premium expense. The increases were partially offset by decreases of $317,000 in compensation and benefits expense, $55,000 in advertising expense, $33,000 in franchise and bank shares tax expense, and $9,000 in amortization of core deposit intangible expense. The $331,000 decrease in non-interest expense for the nine months ended March 31, 2025, compared to the same nine-month period in 2024, is primarily attributable to decreases of $470,000 in compensation and benefits expense, $184,000 in franchise and bank shares tax expense, $179,000 in advertising expense, $65,000 in other non-interest expense, $47,000 in professional fees, $42,000 in amortization of core deposit intangible expense, $22,000 in deposit insurance premium expense, and $19,000 in loan and collection expense. The decreases were partially offset by increases of $594,000 in data processing expense, $86,000 in occupancy and equipment expense, and $17,000 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.

 

 

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       Total assets decreased $17.9 million, or 2.8%, from $637.5 million at June 30, 2024 to $619.6 million at March 31, 2025. The decrease in assets was comprised of decreases in net loans receivable of $12.6 million, or 2.7%, from $470.9 million at June 30, 2024 to $458.3 million at March 31, 2025, cash and cash equivalents of $4.5 million, or 12.9%, from $34.9 million at June 30, 2024 to $30.4 million at March 31, 2025, premises and equipment of $736,000, or 4.0%, from $18.3 million at June 30, 2024 to $17.6 million at March 31, 2025, loans-held-for-sale of $734,000, or 42.4%, from $1.7 million at June 30, 2024 to $999,000 at March 31, 2025, core deposit intangible of $216,000, or 18.0%, from $1.2 million at June 30, 2024 to $983,000 at March 31, 2025, investment securities of $102,000, or 0.1%, from $96.0 million at June 30, 2024 to $95.9 million at March 31, 2025, and partially offset by increases in real estate owned of $482,000, or 115.3% from $418,000 at June 30, 2024 to $900,000 at March 31, 2025, deferred tax asset of $186,000, or 15.7%, from $1.2 million at June 30, 2024 to $1.4 million at March 31, 2025, other assets of $178,000, or 13.2%, from $1.3 million at June 30, 2024 to $1.5 million at March 31, 2025, bank owned life insurance of $87,000, or 1.3%, from $6.8 million at June 30, 2024 to $6.9 million at March 31, 2025, and accrued interest receivable of $27,000, or 1.5%, from $1.78 million at June 30, 2024 to $1.8 million at March 31, 2025.

 

       Total liabilities decreased $19.8 million, or 3.4%, from $584.7 million at June 30, 2024 to $564.9 million at March 31, 2025. The decrease in liabilities was comprised of decreases in total deposits of $17.2 million, or 3.0%, from $574.0 million at June 30, 2024 to $556.8 million at March 31, 2025, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at March 31, 2025, advances from borrowers for taxes and insurance of $137,000, or 26.3%, from $521,000 at June 30, 2024 to $384,000 at March 31, 2025, and partially offset by an increase in other accrued expenses and liabilities of $577,000, or 18.1%, from $3.2 million at June 30, 2024 to $3.8 million at March 31, 2025. The decrease in deposits resulted from decreases in certificates of deposit of $32.5 million, or 15.1%, from $214.9 million at June 30, 2024 to $182.4 million at March 31, 2025, money market deposits of $5.7 million, or 6.6%, from $85.5 million at June 30, 2024 to $79.9 million at March 31, 2025, and non-interest deposits of $535,000, or 0.4%, from $130.3 million at June 30, 2024 to $129.8 million at March 31, 2025, partially offset by increases in savings deposits of $19.3 million, or 25.2%, from $76.6 million at June 30, 2024 to $96.0 million at March 31, 2025, and NOW accounts of $2.1 million, or 3.1%, from $66.6 million at June 30, 2024 to $68.7 million at March 31, 2025. The Company had no balances in brokered deposits at March 31, 2025 or June 30, 2024.

 

       At March 31, 2025, the Company had $3.0 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, six home equity loans, two commercial non-real estate loans, two commercial real-estate loans, and one consumer loan at March 31, 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 March 31, 2025 the Company had nine one-to-four family residential loans, six home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and two consumer loans 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 March 31, 2025 or June 30, 2024.

 

 

 

 

 

 

 

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       Shareholders’ equity increased $1.9 million, or 3.6%, from $52.8 million at June 30, 2024 to $54.7 million at March 31, 2025. The increase in shareholders’ equity was comprised of net income for the nine-month period of $2.7 million, a decrease in the Company’s accumulated other comprehensive loss of $559,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $370,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by dividends paid totaling $1.2 million, and stock repurchases of $517,000.

 

          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.

 

 

 

 

 

 

 

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

 
                 
   

March 31, 2025

   

June 30, 2024

 
   

(Unaudited)

         

ASSETS

               
                 

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $22,197 and $25,505 at

   March 31, 2025 and June 30, 2024, Respectively)

  $ 30,439     $ 34,948  

Securities Available-for-Sale (amortized cost March 31, 2025: $34,751; June 30, 2024: $30,348, Respectively)

    32,149       27,037  

Securities Held-to-Maturity (fair value March 31, 2025: $52,428; June 30, 2024: $54,450, Respectively)

    63,066       67,302  

Other Securities

    636       1,614  

Loans Held-for-Sale

    999       1,733  

Loans Receivable, Net of Allowance for Credit Losses (March 31, 2025:  $4,632; June 30, 2024: $4,574, Respectively)

    458,301       470,852  

Accrued Interest Receivable

    1,802       1,775  

Premises and Equipment, Net

    17,567       18,303  

Bank Owned Life Insurance

    6,897       6,810  

Goodwill

    2,990       2,990  

Core Deposit Intangible

    983       1,199  

Deferred Tax Asset

    1,367       1,181  

Real Estate Owned

    900       418  

Other Assets

    1,528       1,350  
                 

Total Assets

  $ 619,624     $ 637,512  
                 

LIABILITIES AND SHAREHOLDERS EQUITY

               
                 

LIABILITIES

               
                 

Deposits:

               

Non-interest bearing

  $ 129,799     $ 130,334  

Interest-bearing

    426,964       443,673  

Total Deposits

    556,763       574,007  

Advances from Borrowers for Taxes and Insurance

    384       521  

Other Borrowings

    4,000       7,000  

Other Accrued Expenses and Liabilities

    3,758       3,181  
                 

Total Liabilities

    564,905       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: 3,118,764 and 3,142,168 Shares Issued and

               

   Outstanding at March 31, 2025 and June 30, 2024, Respectively

    32       32  

Additional Paid-in Capital

    42,055       41,739  

Unearned ESOP Stock

    (336 )     (408 )

Retained Earnings

    15,024       14,055  

Accumulated Other Comprehensive Loss

    (2,056 )     (2,615 )
                 

Total Shareholders Equity

    54,719       52,803  
                 

TOTAL LIABILITIES AND SHAREHOLDERS EQUITY

  $ 619,624     $ 637,512  

 

 

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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,

 
   

2025

   

2024

   

2025

   

2024

 

Interest income

                               

Loans, including fees

  $ 6,740     $ 7,281     $ 20,426     $ 21,952  

Investment securities

    83       124       213       573  

Mortgage-backed securities

    493       451       1,406       1,384  

Other interest-earning assets

    109       34       779       135  

Total interest income

    7,425       7,890       22,824       24,044  

Interest expense

                               

Deposits

    2,675       3,194       8,851       8,688  

Federal Home Loan Bank borrowings

    -       87       -       180  

Other bank borrowings

    76       205       274       586  

Total interest expense

    2,751       3,486       9,125       9,454  

Net interest income

    4,674       4,404       13,699       14,590  
                                 

Provision for (recovery of) credit losses

    6       11       (172 )     (5 )

Net interest income after provision for credit losses

    4,668       4,393       13,871       14,595  
                                 

Non-interest income

                               

Gain on sale of loans

    80       69       181       184  

Loss on sale of real estate

    -       -       (266 )     (415 )

Gain(Loss) on sale of securities

    -       26       (6 )     26  

Income on Bank-Owned Life Insurance

    29       28       87       82  

Service charges on deposit accounts

    382       363       1,165       1,151  

Other income

    47       20       165       50  

Total non-interest income

    538       506       1,326       1,078  
                                 
                                 

Non-interest expense

                               

Compensation and benefits

    2,136       2,453       6,667       7,137  

Occupancy and equipment

    610       533       1,711       1,625  

Data processing

    553       139       1,107       513  

Audit and examination fees

    150       83       473       456  

Franchise and bank shares tax

    135       168       304       488  

Advertising

    22       77       123       302  

Professional fees

    145       96       396       443  

Loan and collection

    46       31       104       123  

Amortization Core Deposit Intangible

    70       79       216       258  

Deposit insurance premium

    102       90       267       289  

Other expenses

    282       242       729       794  

Total non-interest expense

    4,251       3,991       12,097       12,428  

Income before income taxes

    955       908       3,100       3,245  

Provision for income tax expense

    207       176       392       290  
                                 

NET INCOME

  $ 748     $ 732     $ 2,708     $ 2,955  
                                 

EARNINGS PER SHARE

                               

Basic

  $ 0.24     $ 0.24     $ 0.88     $ 0.97  

Diluted

  $ 0.24     $ 0.24     $ 0.88     $ 0.95  

 

 

6

 

 

   

Three Months Ended

   

Nine months ended

 
   

March 31,

   

March 31,

 
   

2025

   

2024

   

2025

   

2024

 
                                 

Selected Operating Ratios(1):

                               

Average interest rate spread

    2.66 %     2.16 %     2.44 %     2.46 %

Net interest margin

    3.33 %     2.89 %     3.14 %     3.14 %

Return on average assets

    0.50 %     0.45 %     0.58 %     0.60 %

Return on average equity

    5.59 %     5.62 %     6.85 %     7.64 %
                                 

Asset Quality Ratios(2):

                               

Non-performing assets as a percent of total assets

    0.49 %     0.37 %     0.49 %     0.37 %

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

    215.44 %     203.11 %     215.44 %     203.11 %

Allowance for credit losses as a percent of total loans receivable

    1.00 %     0.97 %     1.00 %     0.97 %
                                 

Per Share Data:

                               

Shares outstanding at period end

    3,118,764       3,145,236       3,118,764       3,145,236  

Weighted average shares outstanding:

                               

Basic

    3,061,928       3,047,335       3,062,511       3,039,907  

Diluted

    3,087,624       3,091,011       3,081,233       3,095,817  

Book value per share at period end

  $ 17.55     $ 16.71     $ 17.55     $ 16.71  

 

 ______________                                

(1) Ratios for the three and nine 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

 

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