• HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS FOR THE THREE AND SIX MONTHS ENDED DECEMBER 31, 2023

    المصدر: Nasdaq GlobeNewswire / 25 يناير 2024 15:30:00   America/Chicago

    Shreveport, Louisiana, Jan. 25, 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 December 31, 2023, of $1.0 million compared to net income of $1.7 million reported for the three months ended December 31, 2022. The Company’s basic and diluted earnings per share were $0.33 for the three months ended December 31, 2023, compared to basic and diluted earnings per share of $0.57 and $0.55, respectively, for the three months ended December 31, 2022. The Company reported net income of $2.2 million for the six months ended December 31, 2023, compared to $3.4 million for the six months ended December 31, 2022. The Company’s basic and diluted earnings per share were $0.73 and $0.72, respectively, for the six months ended December 31, 2023 compared to $1.10 and $1.05, respectively, for the six months ended December 31, 2022.

    The Company reported the following highlights during the six months ended December 31, 2023:

    • Total loans receivable, net for the six months ended December 31, 2023 increased $12.3 million, or 2.5%, to $501.8 million at December 31, 2023, compared to $489.5 million at June 30, 2023.
    • The Company’s average interest rate spread was 2.60% for the six months ended December 31, 2023, compared to 3.70% for the six months ended December 31, 2022.
    • The Company’s net interest margin was 3.26% for the six months ended December 31, 2023, compared to 3.91% for the six months ended December 31, 2022.
    • Nonperforming assets totaled $2.2 million, or 0.34% of total assets at December 31, 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 December 31, 2023, as compared to same period in 2022 resulted primarily from an increase of $693,000, or 19.4%, in non-interest expense, a decrease of $421,000, or 7.9%, in net interest income, and a decrease of $402,000, or 74.5%, in non-interest income, partially offset by a decrease of $640,000, or 144.1%, in provision (benefit) for income taxes, and a decrease of $166,000, or 110.7%, in the provision for credit losses. The decrease in net interest income for the three months ended December 31, 2023, as compared to same period in 2022, was primarily due to an increase of $2.4 million, or 315.9%, in total interest expense, partially offset by an increase of $2.0 million, or 32.7%, in total interest income. The Company’s average interest rate spread was 2.45% for the three months ended December 31, 2023, compared to 3.67% for the three months ended December 31, 2022. The Company’s net interest margin was 3.14% for the three months ended December 31, 2023, compared to 3.91% for the three months ended December 31, 2022.

    The decrease in net income for the six months ended December 31, 2023, as compared to same period in 2022 resulted primarily from an increase of $1.1 million, or 15.4%, in non-interest expense, a decrease of $514,000, or 47.3%, in non-interest income, a decrease of $443,000, or 4.2%, in net interest income, partially offset by a decrease of $584,000, or 102.8%, in the provision for credit losses, and a decrease of $339,000, or 74.7%, in provision for income taxes. The decrease in net interest income for the six months ended December 31, 2023, as compared to same period in 2022, was primarily due to an increase of $4.7 million, or 381.3%, in total interest expense, partially offset by an increase of $4.3 million, or 36.1%, in total interest income. The Company’s average interest rate spread was 2.60% for the six months ended December 31, 2023 compared to 3.70% for the six months ended December 31, 2022. The Company’s net interest margin was 3.26% for the six months ended December 31, 2023 compared to 3.91% for the six months ended December 31, 2022.

    On July 1, 2023, the Company adopted the new current expected credit loss (“CECL”) methodology for estimating credit losses. This resulted in a $189,000 increase to the allowance for credit losses (the “ACL”) 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 and a recovery of credit losses in the provision of $16,000 was recorded in the second quarter of 2024. As of December 31, 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 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 December 31,
      2023   2022 
     Average Average Average Average
     Balance Yield/Rate Balance Yield/Rate
     (Dollars in thousands)
    Interest-earning assets:       
    Loans receivable        $507,844 5.78% $415,113 5.17%
    Investment securities         109,485 2.43   107,490 1.82 
    Interest-earning deposits         1,751 2.95   17,067 4.39 
    Total interest-earning assets        $619,080 5.18% $539,670 4.48%
            
    Interest-bearing liabilities:       
    Savings accounts        $73,228 0.40% $109,471 0.29%
    NOW accounts         65,252 0.43   61,223 0.27 
    Money market accounts         95,763 2.49   96,264 0.40 
    Certificates of deposit         212,792 4.01   101,234 1.67 
    Total interest-bearing deposits          447,035 2.57   368,192 0.70 
    Other bank borrowings         9,202 8.58   6,422 6.74 
    FHLB advances         5,379 5.75   817 4.80 
    Total interest-bearing liabilities        $461,616 2.73% $375,431 0.81%


     For the Six Months Ended December 31,
      2023   2022 
     Average Average Average Average
     Balance Yield/Rate Balance Yield/Rate
     (Dollars in thousands)
    Interest-earning assets:       
    Loans receivable        $503,043 5.79% $405,940 5.10%
    Investment securities         111,535 2.46   109,045 1.79 
    Interest-earning deposits         5,843 3.43   24,931 3.58 
    Total interest-earning assets        $620,421 5.16% $539,916 4.36%
            
    Interest-bearing liabilities:       
    Savings accounts        $75,900 0.39% $119,110 0.27%
    NOW accounts         66,639 0.41   59,940 0.19 
    Money market accounts         102,327 2.37   95,479 0.27 
    Certificates of deposit         203,779 3.88   92,974 1.47 
    Total interest-bearing deposits          448,645 2.43   367,503 0.56 
    Other bank borrowings         8,928 8.47   5,668 6.12 
    FHLB advances         3,259 5.66   822 4.83 
    Total interest-bearing liabilities        $460,832 2.57% $373,993 0.66%


    The $402,000 decrease in non-interest income for the three months ended December 31, 2023, compared to the prior year quarterly period, was primarily due to an increase of $381,000 in loss on sale of real estate, and a $66,000 decrease in gain on sale of loans, partially offset by a $38,000 increase in service charges on deposit accounts, an increase of $5,000 in other non-interest income, and an increase of $2,000 in income on bank owned life insurance. The $514,000 decrease in non-interest income for the six months ended December 31, 2023 compared to the prior year six-month period was primarily due to an increase of $415,000 in loss on sale of real estate, and a decrease of $202,000 in gain on sale of loans, partially offset by a $94,000 increase in service charges on deposit accounts, an increase of $7,000 in other non-interest income, and a $2,000 increase in income from bank owned life insurance. The decreases in gain on sale of loans for both the quarter and six months ended December 31, 2023, were 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 increases in loss on sale of real estate for both the quarter and six months ended December 31, 2023, were primarily due to the bulk sale of twenty-one distressed rental properties.

    The $693,000 increase in non-interest expense for the three months ended December 31, 2023, compared to the same period in 2022, is primarily attributable to increases of $235,000 in compensation and benefits expense, $186,000 in audit and examination fees, $113,000 in professional fees, $85,000 in amortization of core deposit intangible expense, $55,000 in deposit insurance premium expense, $46,000 in occupancy and equipment expense, $42,000 in franchise and bank shares tax expense, $38,000 in other non-interest expense, and $14,000 in advertising expense. The increases were partially offset by a decrease of $91,000 in data processing expense, and $30,000 in loan and collection expense. The $1.1 million increase in non-interest expense for the six months ended December 31, 2023, compared to the same six-month period in 2022, is primarily attributable to increases of $309,000 in compensation and benefits expense, $213,000 in audit and examination fees, $179,000 in amortization of core deposit intangible expense, $147,000 in professional fees, $99,000 in deposit insurance premium expense, $93,000 in occupancy and equipment expense, $83,000 in advertising expense, and $79,000 in franchise and bank shares tax expense. The increases were partially offset by decreases of $27,000 in data processing expense, $26,000 in other non-interest expense, and $22,000 in loan and collection expense. The increases in compensation and benefits expense were primarily due to additional branch and back office staff.

    At December 31, 2023, the Company reported total assets of $654.2 million, a decrease of $6.7 million, or 1.0%, compared to total assets of $660.9 million at June 30, 2023. The decrease in assets was comprised primarily of decreases in cash and cash equivalents of $16.1 million, or 65.0%, from $24.8 million at June 30, 2023 to $8.7 million at December 31, 2023, investment securities of $5.2 million, or 4.5%, from $114.0 million at June 30, 2023 to $108.8 million at December 31, 2023, real estate owned of $368,000, or 100.0% from $368,000 at June 30, 2023 to none at December 31, 2023, core deposit intangible of $179,000, or 11.7%, from $1.5 million at June 30, 2023 to $1.4 million at December 31, 2023, deferred tax asset of $140,000, or 10.7%, from $1.3 million at June 30, 2023 to $1.2 million at December 31, 2023, other assets of $117,000, or 8.2%, from $1.4 million at June 30, 2023 to $1.3 million at December 31, 2023. These decreases were partially offset by increases in net loans receivable of $12.3 million, or 2.5%, from $489.5 million at June 30, 2023 to $501.8 million at December 31, 2023, loans-held-for-sale of $1.8 million, from $4,000 at June 30, 2023 to $1.9 million at December 31, 2023, premises and equipment of $1.0 million, or 6.3%, from $16.6 million at June 30, 2023 to $17.6 million at December 31, 2023, accrued interest receivable of $93,000, or 5.2%, from $1.8 million at June 30, 2023 to $1.9 million at December 31, 2023, and bank owned life insurance of $54,000, or 0.8%, from $6.7 million at June 30, 2023 to $6.8 million at December 31, 2023. The decrease in cash and cash equivalents was primarily due to a decrease in total deposits and the funding of additional loan growth. The decrease in held to maturity securities was due to $2.9 million in principal payments. The increase in loans held-for-sale primarily reflected an increase in loans originated for sale during the six months ended December 31, 2023.

    Total liabilities decreased $8.8 million, or 1.4%, from $610.4 million at June 30, 2023 to $601.6 million at December 31, 2023. The decrease in liabilities was comprised primarily of decreases in total deposits of $13.7 million, or 2.3%, from $597.4 million at June 30, 2023 to $583.7 million at December 31, 2023, other accrued expenses and liabilities of $1.4 million, or 35.8%, from $3.9 million at June 30, 2023 to $2.5 million at December 31, 2023, and advances from borrowers for taxes and insurance of $209,000, or 37.7%, from $554,000 at June 30, 2023 to $345,000 at December 31, 2023. The decreases were partially offset by increases in short term advances from FHLB of $5.4 million from none at June 30, 2023 to $5.4 million at December 31, 2023, and other borrowings of $1.1 million, or 12.9%, from $8.6 million at June 30, 2023 to $9.7 million at December 31, 2023. The decrease in deposits was primarily due to decreases in money market deposits of $21.8 million, or 19.1%, from $114.2 million at June 30, 2023 to $92.4 million at December 31, 2023, savings deposits of $11.3 million, or 13.8%, from $81.9 million at June 30, 2023 to $70.6 million at December 31, 2023, non-interest deposits of $9.4 million, or 6.4%, from $145.6 million at June 30, 2023 to $136.2 million at December 31, 2023, NOW accounts of $150,000, or 0.2%, from $65.3 million at June 30, 2023 to $65.2 million at December 31, 2023, partially offset by an increase in certificates of deposit of $28.8 million, or 15.2%, from $190.4 million at June 30, 2023 to $219.2 million at December 31, 2023. The Company had $3.0 million in brokered deposits at both December 31, 2023 and June 30, 2023. There was a shift of balances between deposit categories due to customers moving funds from lower yielding categories to higher yielding categories. The $13.7 million decrease in deposits from June 30, 2023 to December 31, 2023 was primarily due to an estate settlement totaling $24.2 million. $15.4 million of the settlement has been paid out to date, with the remaining $8.8 million to be paid out in the future. This loss of deposits resulted in an increase in short term advances from FHLB.

    At December 31, 2023, the Company had $2.2 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 eleven commercial non-real estate loans, six single-family residential loans, three land loans, and three home equity line-of-credit loans at December 31, 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 December 31, 2023 the Company had 12 commercial non-real-estate loans, seven single family residential loans, four home-equity line-of-credit loans, two land loans, one commercial real estate loan, and one auto loan classified as substandard, 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 December 31, 2023 or June 30, 2023.

    Shareholders’ equity increased $2.1 million, or 4.1%, to $52.6 million at December 31, 2023 from $50.5 million at June 30, 2023. The primary reasons for the changes in shareholders’ equity from June 30, 2023 was net income of $2.2 million, a decrease in the Company’s accumulated other comprehensive loss of $531,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $301,000, partially offset by dividends paid totaling $783,000, CECL implementation totaling $189,000, and stock repurchases of $30,000.

    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 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)
        
     December 31, 2023 June 30, 2023
     (Unaudited) (Audited)
    ASSETS   
        
    Cash and Cash Equivalents (Includes Interest-Bearing
    		       
            Deposits with Other Banks of $990 and $22,215 at
            December 31, 2023 and June 30, 2023, Respectively)    		$    8,668  $24,765 
    Securities Available-for-Sale (amortized cost December 31, 2023: $39,935;
    		       
         June 30, 2023: $42,910, Respectively) 37,309   39,551 
    Securities Held-to-Maturity (fair value December 31, 2023: $59,728
            June 30, 2023: $61,222, Respectively)    		 71,533   74,423 
    Loans Held-for-Sale 1,851   4 
    Loans Receivable, Net of Allowance for Credit Losses (December 31, 2023:
           $5,073; June 30, 2023: $5,173, Respectively)    		 501,761   489,493 
    Accrued Interest Receivable 1,883   1,790 
    Premises and Equipment, Net 17,605   16,561 
    Bank Owned Life Insurance 6,754   6,700 
    Goodwill 2,990   2,990 
    Core Deposit Intangible 1,354   1,533 
    Deferred Tax Asset 1,173   1,313 
    Real Estate Owned -   368 
    Other Assets     1,307
    		   1,424 
        
            Total Assets$654,188
    		  $660,915 
        
    LIABILITIES AND SHAREHOLDERS’ EQUITY   
        
    LIABILITIES   
        
    Deposits:   
    Non-interest bearing$136,217  $145,553 
    Interest-bearing 447,472
    		   451,808 
    Total Deposits 583,689   597,361 
    Advances from Borrowers for Taxes and Insurance 345   554 
    Short-term Federal Home Loan Bank Advances 5,400   -- 
    Other Borrowings 9,650   8,550 
    Other Accrued Expenses and Liabilities 2,510
    		   3,908 
        
            Total Liabilities 601,594
    		   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: 3,143,532 and 3,133,351 Shares Issued and   
          Outstanding at December 31, 2023 and June 30, 2023, Respectively 31   34 
    Additional Paid-in Capital 41,224   40,981 
    Unearned ESOP Stock (466)  (523)
    Retained Earnings 13,927   12,707 
    Accumulated Other Comprehensive Loss (2,122)  (2,654)
        
    Total Shareholders’ Equity
    		 52,594   50,542 
            
    TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY$654,188
    		  $660,915 


    Home Federal Bancorp, Inc. of Louisiana
    CONSOLIDATED STATEMENTS OF INCOME
    (In thousands, except per share data)
    (Unaudited)
     
     Three Months Ended Six Months Ended
     December 31, December 31,
      2023   2022  2023   2022
    Interest income       
    Loans, including fees$  7,397  $  5,406 $14,671  $10,434
    Investment securities 210   3  449   5
    Mortgage-backed securities 460   490  933   980
    Other interest-earning assets 13   189  101   450
         Total interest income 8,080   6,088  16,154   11,869
    Interest expense       
    Deposits 2,901   645  5,494   1,045
    Federal Home Loan Bank borrowings 78   10  93   20
    Other bank borrowings 198   109  381   175
         Total interest expense 3,177   764  5,968   1,240
            Net interest income 4,903   5,324  10,186   10,629
            
    Provision for (recovery of) credit losses (16)  150  (16)  568
    Net interest income after provision for credit losses 4,919   5,174  10,202   10,061
            
    Non-interest income       
    Loss on sale of real estate (381)  -  (415)  -
    Gain on sale of loans 76   142  115   317
    Income on Bank-Owned Life Insurance 28   26  54   52
    Service charges on deposit accounts 397   359  788   694
    Other income 17   12  30   23
            
         Total non-interest income 137   539  572   1,086
            
    Non-interest expense       
    Compensation and benefits 2,328   2,093  4,684   4,375
    Occupancy and equipment 544   498  1,092   999
    Data processing 129   220  374   401
    Audit and examination fees 271   85  373   160
    Franchise and bank shares tax 164   122  320   241
    Advertising 82   68  225   142
    Legal fees 187   74  347   200
    Loan and collection 32   62  92   114
    Amortization Core Deposit Intangible 85   -  179   -
    Deposit insurance premium 108   53  199   100
    Other expenses 319   281  552   578
            
         Total non-interest expense 4,249   3,556  8,437   7,310
            
    Income before income taxes 807   2,157  2,337   3,837
    Provision for income tax expense (benefit) (196)  444  114   453
            
    NET INCOME$1,003  $1,713 $2,223  $3,384
            
    EARNINGS PER SHARE       
            
       Basic$0.33  $0.57 $          0.73  $1.10
       Diluted$0.33  $0.55 $          0.72  $1.05


     Three Months Ended Six Months Ended
     December 31, December 31,
      2023   2022   2023   2022 
    Selected Operating Ratios(1):       
    Average interest rate spread 2.45%  3.67%  2.60%  3.70%
    Net interest margin 3.14%  3.91%  3.26%  3.91%
    Return on average assets 0.60%  1.18%  0.67%  1.16%
    Return on average equity 7.81%  14.21%  8.64%  14.10%
            
    Asset Quality Ratios(2):       
    Non-performing assets as a percent of total assets 0.34%  0.38%  0.34%  0.38%
    Allowance for credit losses as a percent of non-performing loans(3) 226.50%  245.89%  226.50%  245.89%
    Allowance for credit losses as a percent of total loans receivable(3) 1.00%  1.14%  1.00%  1.14%
            
    Per Share Data:       
    Shares outstanding at period end 3,143,532   3,121,251   3,143,532   3,121,251 
    Weighted average shares outstanding:       
         Basic         3,040,006   2,995,164   3,033,341   3,083,822 
         Diluted 3,085,271   3,131,382   3,096,546   3,233,328 
    Book value per share at period end$         16.73  $   15.60  $         16.73  $15.60 
    _________________        
    (1)        Ratios for the three and six month periods are annualized.       
    (2)        Asset quality ratios are end of period ratios.       
    (3)        Prior to July 1, 2023, the incurred loss methodology was used to estimate credit losses.
                Subsequent to that date, credit losses are estimated using the CECL methodology.



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

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