Financial Performance - Home Federal Bancorp reported a net income of $3.6 million for fiscal 2024, down from $5.7 million in fiscal 2023, representing a decrease of approximately 36.8%[142]. - The net interest income decreased by $2.6 million to $19.0 million in fiscal 2024, compared to $21.6 million in fiscal 2023, reflecting a decline of about 12.0%[143]. - Total interest income increased to $31.9 million in fiscal 2024, up from $26.6 million in fiscal 2023, an increase of about 19.0%[160]. - Total non-interest income was $1.6 million, while total non-interest expense was $16.4 million for fiscal 2024[160]. - The provision for loan losses was $40, significantly lower than $868 in fiscal 2023, indicating a decrease of approximately 95.4%[160]. - Basic earnings per share decreased to $1.18 in 2024 from $1.89 in 2023, a drop of 37.5%[218]. - Total comprehensive income for 2024 was $3,632,000, down from $4,749,000 in 2023, a decrease of 23.5%[219]. Asset and Liability Management - Total assets decreased to $637.5 million at June 30, 2024, from $660.9 million in 2023, a decline of approximately 3.5%[159]. - Total liabilities decreased by $25.7 million, or 4.2%, from $610.4 million at June 30, 2023, to $584.7 million at June 30, 2024[166]. - Shareholders' equity increased by $2.3 million, or 4.5%, from $50.5 million at June 30, 2023, to $52.8 million at June 30, 2024[167]. - Cash and cash equivalents increased by $10.2 million, or 41.1%, from $24.8 million at June 30, 2023, to $34.9 million at June 30, 2024[165]. - Total deposits decreased from $597.4 million in June 30, 2023 to $574.0 million in June 30, 2024, a decline of about 3.9%[215]. Loan Portfolio and Credit Quality - As of June 30, 2024, commercial real estate loans amounted to $143.5 million, or 30.2% of the total loan portfolio, while commercial business loans totaled $49.3 million, or 10.4% of the total loan portfolio[146]. - Net loans receivable decreased by $18.6 million, or 3.8%, from $489.5 million at June 30, 2023, to $470.9 million at June 30, 2024[163]. - Non-performing assets totaled $2.0 million, or 0.31% of total assets, as of June 30, 2024[148]. - Non-performing loans as a percent of loans receivable increased to 0.32% from 0.25% year-over-year[161]. - The allowance for credit losses was $4.6 million, with a ratio of 0.96% to gross loans, down from $5.2 million and 1.05% as of June 30, 2023[178]. - The company reported a total of $3,150,000 in special mention loans and $3,977,000 in substandard loans within the real estate loan category[287]. Interest Income and Expense - Total interest expense increased by $7.8 million, or 154.2%, to $12.9 million for fiscal year 2024 compared to $5.1 million for fiscal year 2023[177]. - The average interest rate spread decreased from 3.37% for fiscal 2023 to 2.38% for fiscal 2024[175]. - The average rate on interest-bearing liabilities increased to 2.81% from 1.24% year-over-year[161]. - Interest paid on deposits and borrowed funds was $12,913,000 in 2024, up from $5,079,000 in 2023, indicating increased borrowing costs[226]. Tax and Regulatory Compliance - The provision for income taxes was $476,000 for fiscal 2024, with an effective tax rate of 11.7%, down from $1.1 million and 15.7% for fiscal 2023[183]. - The effective federal income tax rate decreased from 15.75% in 2023 to 11.7% in 2024[312]. - Home Federal Bank exceeded all capital requirements with common equity tier 1 and tier 1 capital ratios of 13.29% as of June 30, 2024[192]. Securities and Investments - Securities available-for-sale decreased to $27.0 million as of June 30, 2024, representing 4.24% of total assets, down from $39.6 million and 6.04% a year earlier[184]. - The fair value of securities held-to-maturity decreased from $59.7 million in June 30, 2023 to $54.5 million in June 30, 2024, a decrease of approximately 8.7%[215]. - The total fair value of securities available-for-sale was $39.55 million, with a significant portion attributed to mortgage-backed securities[271]. Operational Efficiency - Efficiency ratio increased to 79.99% from 67.71% year-over-year[161]. - Non-interest income decreased by $515,000, or 24.5%, for the year ended June 30, 2024, compared to the previous year[174]. - Non-interest expense rose by $413,000 for the year ended June 30, 2024, driven by increases in compensation and benefits expense of $436,000 and audit fees of $235,000[181]. Future Outlook and Strategy - The company plans to continue emphasizing commercial lending to improve portfolio yield and expand its market presence through new banking offices and potential acquisitions[146][148]. - The Company has a diversified loan portfolio concentrated within a 100-mile radius of Shreveport, Louisiana, mitigating dependence on any particular economic sector[339].

Financial Performance - For the three months ended June 30, 2024, net income was $638,000, a decrease from $1.3 million for the same period in 2023, with earnings per share dropping from $0.42 to $0.21[1] - For the year ended June 30, 2024, net income was $3.6 million, down from $5.7 million in 2023, with earnings per share decreasing from $1.89 to $1.18[1] - Net income for the three months ended June 30, 2024, decreased to $638,000, down from $1,257,000 in the same period of 2023, representing a decline of 49.3%[12] Interest Income and Expense - Net interest income decreased by $2.6 million, or 12.1%, for the year ended June 30, 2024, primarily due to a $7.8 million increase in interest expense, or 154.2%[2] - The Company had a $7.5 million increase in interest expense on deposits, or 166.3%, due to a 69.4% increase in average balance of certificates of deposit[2] - Total interest expense increased by $1.2 million, or 50.5%, while total interest income increased by $70,000, or 0.9%[16] - Net interest income decreased by $1.1 million, or 20.0%, for the three months ended June 30, 2024, compared to the same period in 2023[16] - The average interest rate spread decreased from 3.37% in 2023 to 2.38% in 2024, while the net interest margin fell from 3.73% to 3.08%[2] - The average interest rate spread decreased to 2.15% for the three months ended June 30, 2024, compared to 2.84% for the same period in 2023[13] - The net interest margin was 2.91% for the three months ended June 30, 2024, down from 3.35% in the same period of 2023[16] Non-Interest Income and Expense - Non-interest income decreased by $515,000, or 24.5%, for the year ended June 30, 2024, primarily due to a $415,000 increase in loss on sale of real estate[4] - Non-interest income increased by $2,000, or 0.4%, for the three months ended June 30, 2024, compared to the same period in 2023[16] - Non-interest expense increased by $413,000, or 2.6%, for the year ended June 30, 2024, driven by a $436,000 increase in compensation and benefits expense[5] - Non-interest expense decreased by $207,000, or 4.9%, for the three months ended June 30, 2024, compared to the same period in 2023[16] Asset and Liability Management - Total assets decreased by $23.4 million, or 3.5%, from $660.9 million at June 30, 2023, to $637.5 million at June 30, 2024[20] - Total deposits decreased by $23.4 million, or 3.9%, from $597.4 million at June 30, 2023, to $574.0 million at June 30, 2024[6] - Net loans receivable decreased by $18.6 million, or 3.8%, from $489.5 million at June 30, 2023, to $470.9 million at June 30, 2024[20] - Investment securities decreased by $18.0 million, or 15.8%, from $114.0 million at June 30, 2023, to $96.0 million at June 30, 2024[20] - Cash and cash equivalents increased by $10.2 million, or 41.1%, from $24.8 million at June 30, 2023, to $34.9 million at June 30, 2024[20] - The total interest-bearing liabilities increased to $460.0 million in 2024, with an average rate of 2.81%, up from $409.6 million and 1.24% in 2023[18] Credit Quality - Non-performing assets increased to $2.0 million at June 30, 2024, compared to $1.6 million at June 30, 2023[7] - Provision for credit losses decreased by $105,000, or 70.0%, for the three months ended June 30, 2024, compared to the same period in 2023[16] - As of June 30, 2024, the ACL was $4.6 million, with a ratio of ACL to gross loans at 0.96%, down from $5.2 million and 1.05% as of June 30, 2023[17] Shareholder Equity - Shareholders' equity increased by $2.3 million, or 4.5%, from $50.5 million at June 30, 2023, to $52.8 million at June 30, 2024[22] - Current year net income contributed $3.6 million to the increase in shareholders' equity[22] - The company reported 3,144,168 shares outstanding at the end of June 30, 2024, compared to 3,133,351 shares in the same period of 2023[13] Accounting Changes - The Company adopted the CECL methodology on July 1, 2023, resulting in a $189,000 increase to the allowance for credit losses (ACL) and a decrease in stockholders' equity by the same amount[17]

Core Insights - The company reported a decrease in net income for the three months ended June 30, 2024, amounting to $638,000 compared to $1.3 million for the same period in 2023, with basic and diluted earnings per share both at $0.21, down from $0.42 and $0.40 respectively [17][29] - For the year ended June 30, 2024, net income was $3.6 million, a decline from $5.7 million in 2023, with basic and diluted earnings per share both at $1.18, compared to $1.89 and $1.80 in the previous year [17][18] Financial Performance - Net interest income decreased by $2.6 million, or 12.1%, for the year ended June 30, 2024, primarily due to a $7.8 million increase in total interest expense, which rose by 154.2% [18] - Total interest income increased by $5.2 million, or 19.7%, while non-interest income decreased by $515,000, or 24.5% [18] - The average interest rate spread was 2.38% for the year ended June 30, 2024, down from 3.37% in 2023, and the net interest margin decreased from 3.73% to 3.08% [18][16] Asset and Liability Management - Total assets decreased by $23.4 million, or 3.5%, from $660.9 million at June 30, 2023, to $637.5 million at June 30, 2024, driven by a reduction in net loans receivable and investment securities [9] - Total liabilities decreased by $25.7 million, or 4.2%, from $610.4 million to $584.7 million, with total deposits declining by $23.4 million, or 3.9% [23] - Shareholders' equity increased by $2.3 million, or 4.5%, from $50.5 million to $52.8 million, supported by current year net income and stock option exercises [11] Credit Quality - The allowance for credit losses (ACL) was $4.6 million as of June 30, 2024, with a ratio of ACL to gross loans at 0.96%, down from 1.05% a year earlier [5][18] - Non-performing assets increased to $2.0 million at June 30, 2024, compared to $1.6 million at June 30, 2023 [10] Non-Interest Income and Expenses - Non-interest income for the three months ended June 30, 2024, saw a slight increase of $2,000, while for the year, it decreased by $515,000, primarily due to losses on real estate sales [8][18] - Non-interest expenses increased by $413,000, or 2.6%, for the year ended June 30, 2024, driven by higher compensation and benefits expenses [22]

Core Points - Home Federal Bancorp, Inc. of Louisiana declared a quarterly cash dividend of $0.13 per share, payable on August 19, 2024, to shareholders of record as of August 5, 2024 [1] - This marks the eleventh annual increase in the dividend rate and the 77th consecutive quarterly cash dividend, demonstrating the company's commitment to shareholder value and confidence in its financial strength [2] - The recent dividend increase reflects a payout ratio of approximately 54% based on earnings for the quarter ended March 31, 2024 [2] Company Overview - Home Federal Bancorp, Inc. is the holding company for Home Federal Bank, which operates ten full-service banking offices in northwest Louisiana [2]

Financial Performance - Net interest income for the three months ended March 31, 2024, was $4.404 million, down from $5.473 million for the same period in 2023, a decrease of about 19.5%[11] - Net income for the three months ended March 31, 2024, was $732,000, compared to $1.062 million for the same period in 2023, reflecting a decline of approximately 30.9%[11] - Non-interest income for the three months ended March 31, 2024, was $1.078 million, compared to $1.594 million for the same period in 2023, a decrease of approximately 32.4%[11] - Earnings per share for the three months ended March 31, 2024, was $0.24, down from $0.35 for the same period in 2023, a decrease of approximately 31.4%[11] - Net income for the nine months ended March 31, 2024, was $2,955,000, a decrease of 33.5% compared to $4,446,000 for the same period in 2023[21] Assets and Deposits - Total assets decreased from $660.915 million as of June 30, 2023, to $643.026 million as of March 31, 2024, representing a decline of approximately 2.7%[7] - Total deposits decreased from $597.361 million as of June 30, 2023, to $578.881 million as of March 31, 2024, a reduction of about 3.1%[7] - The company reported a net cash decrease in deposits of $18,480,000 for the nine months ended March 31, 2024, compared to an increase of $82,383,000 in the same period of 2023[24] - Cash provided by operating activities was $460,000 for the nine months ended March 31, 2024, significantly lower than $8,834,000 for the same period in 2023[21] Stockholders' Equity - Total stockholders' equity increased from $50.542 million as of June 30, 2023, to $52.550 million as of March 31, 2024, an increase of about 4%[8] - Total stockholders' equity increased to $52,550,000 as of March 31, 2024, up from $50,123,000 as of March 31, 2023, reflecting a growth of 4.8%[19] - The balance of retained earnings increased to $14,257,000 as of March 31, 2024, from $11,824,000 as of March 31, 2023[21] Credit Losses and Provisions - The provision for credit losses for the three months ended March 31, 2024, was $11,000, compared to a recovery of $150,000 for the same period in 2023[11] - The allowance for credit losses decreased to $4.89 million from $5.17 million, a reduction of approximately 5.4%[93] - The allowance for credit losses increased to $4,887,000 as of March 31, 2024, from $5,173,000 as of June 30, 2023, reflecting a current provision recovery of $5,000[114] Securities and Investments - The unrealized losses on securities available for sale for the three months ended March 31, 2024, amounted to $(608,000), impacting the total comprehensive income negatively[13] - The total amortized cost of securities available-for-sale was $33.089 million, with a fair value of $29.829 million as of March 31, 2024, reflecting unrealized losses of $3.333 million[84] - The total amortized cost of securities held-to-maturity was $68.706 million, with a fair value of $55.660 million, indicating unrealized losses of $13.046 million[84] Loans and Credit Quality - Total loans receivable amounted to $504.27 million, an increase from $494.83 million as of June 30, 2023, representing a growth of approximately 1.8%[93] - The net loans receivable after allowance for credit losses was $499.27 million, compared to $489.49 million in the previous period, indicating a net increase of about 2%[93] - The total amount of commercial loans is $56.96 million, with $54.65 million classified as "Pass," reflecting a robust lending portfolio[106] - The overall credit quality indicators suggest a stable and improving loan portfolio, with a focus on maintaining low levels of charge-offs and high classifications of "Pass" loans[106] Other Financial Metrics - The company declared dividends totaling $1,177,000 for the nine months ended March 31, 2024, slightly higher than $1,165,000 in the same period of 2023[24] - The company reported a significant decrease in loans held-for-sale originations and purchases, totaling $10,640,000 for the nine months ended March 31, 2024, compared to $22,065,000 in 2023[21] - The company incurred a loss on the sale of loans amounting to $184,000 for the nine months ended March 31, 2024, compared to a loss of $404,000 in the same period of 2023[21]

Financial Performance - Net income for the three months ended March 31, 2024, was $732,000, a decrease of 33.5% from $1.1 million for the same period in 2023[1] - Basic and diluted earnings per share for the three months ended March 31, 2024, were $0.24, down from $0.35 and $0.34 for the same period in 2023[1] - Net interest income decreased to $4.4 million for the three months ended March 31, 2024, compared to $5.5 million for the same period in 2023[22] - Total interest income rose to $7.9 million for the three months ended March 31, 2024, compared to $7.0 million for the same period in 2023[22] - Total non-interest income was $506,000 for the three months ended March 31, 2024, compared to $508,000 for the same period in 2023[22] - Non-interest expense decreased by $507,000, or 11.3%, for the three months ended March 31, 2024, primarily due to a decrease in professional fees[10] Asset and Liability Management - Total assets decreased by $17.9 million, or 2.7%, from $660.9 million at June 30, 2023, to $643.0 million at March 31, 2024[11] - Total liabilities decreased by $19.9 million, or 3.3%, from $610.4 million at June 30, 2023, to $590.5 million at March 31, 2024[12] - Total deposits decreased by $18.5 million, or 3.1%, from $597.4 million at June 30, 2023, to $578.9 million at March 31, 2024, primarily due to an estate settlement totaling $24.8 million[12] - Shareholders' equity increased by $2.0 million, or 4.0%, from $50.5 million at June 30, 2023, to $52.6 million at March 31, 2024, driven by current year net income of $3.0 million[14] Loan and Credit Quality - Total loans receivable, net increased by $9.8 million, or 2.0%, to $499.3 million at March 31, 2024, compared to $489.5 million at June 30, 2023[5] - Nonperforming assets totaled $2.4 million, or 0.37% of total assets at March 31, 2024, compared to $1.6 million, or 0.24% of total assets at June 30, 2023[5] - Non-performing assets increased to $2.4 million at March 31, 2024, from $1.6 million at June 30, 2023[13] - The allowance for credit losses (ACL) was $4.9 million as of March 31, 2024, with a ratio of ACL to gross loans of 0.97%[6] - Allowance for credit losses as a percent of non-performing loans was 203.11% in Q1 2024, slightly down from 208.49% in Q1 2023[23] Interest Rate Metrics - Net interest income decreased by $1.1 million, or 19.5%, for the three months ended March 31, 2024, primarily due to a 126.4% increase in total interest expense[3] - The average interest rate spread was 2.46% for the nine months ended March 31, 2024, down from 3.55% for the same period in 2023[5] - Average interest rate spread decreased to 2.16% in Q1 2024 from 3.15% in Q1 2023[23] - Net interest margin declined to 2.89% in Q1 2024 compared to 3.56% in Q1 2023[23] Shareholder Metrics - Book value per share increased to $16.71 at the end of Q1 2024, up from $16.05 in Q1 2023[23] - Shares outstanding at period end rose to 3,145,236 in Q1 2024 from 3,123,651 in Q1 2023[23] - Weighted average diluted shares outstanding decreased to 3,091,011 in Q1 2024 from 3,132,312 in Q1 2023[23] Transition and Methodology - The company transitioned to the CECL methodology for estimating credit losses after July 1, 2023[24]

Shreveport, Louisiana , April 26, 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 March 31, 2024, of $732,000 compared to net income of $1.1 million reported for the three months ended March 31, 2023. The Company's basic and diluted earnings per share were $0.24 for the three months ended March 31, 2024, compared to basic and diluted earnings per share of $0.35 and $0.34, ...

Shreveport, Louisiana, April 17, 2024 (GLOBE NEWSWIRE) -- Home Federal Bancorp, Inc. of Louisiana (the "Company") (NASDAQ:HFBL), the holding company for Home Federal Bank, announced today that its Board of Directors at their meeting on April 17, 2024, declared a quarterly cash dividend of $0.125 per share on the Company's common stock. The dividend is payable on May 13, 2024, to the shareholders of record at the close of business on April 29, 2024. Home Federal Bancorp, Inc. of Louisiana is the holding comp ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended: December 31, 2023 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-35019 HOME FEDERAL BANCORP, INC. OF LOUISIANA (Exact name of registrant as specified in its charter) Louisiana 02-0815311 (State ...

[PART I FINANCIAL INFORMATION](index=4&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) [Item 1: Financial Statements (Unaudited)](index=4&type=section&id=Item%201%3A%20Financial%20Statements%20%28Unaudited%29) The unaudited consolidated financial statements for the quarter ended September 30, 2023, show a net income of $1.2 million, a decrease from $1.7 million in the prior-year period, with total assets slightly increasing to $662.6 million driven by loan growth, and a key accounting change being the adoption of the CECL standard [Consolidated Statements of Financial Condition](index=4&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) As of September 30, 2023, total assets increased slightly to $662.6 million, driven by a $17.1 million increase in net loans receivable funded by a $15.9 million decrease in cash, while liabilities and equity saw minor changes Consolidated Balance Sheet Highlights (in thousands) | Financial Metric | Sep 30, 2023 (Unaudited) | June 30, 2023 (Audited) | Change (%) | | :--- | :--- | :--- | :--- | | Cash and Cash Equivalents | $8,878 | $24,765 | -64.2% | | Loans Receivable, Net | $506,599 | $489,493 | +3.5% | | Total Assets | $662,602 | $660,915 | +0.3% | | Total Deposits | $592,505 | $597,361 | -0.8% | | Total Liabilities | $612,129 | $610,373 | +0.3% | | Total Stockholders' Equity | $50,473 | $50,542 | -0.1% | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) Net income for the three months ended September 30, 2023, decreased to $1.22 million ($0.39 per diluted share) from $1.67 million in 2022, primarily due to a significant rise in interest expense offsetting interest income growth, despite no provision for credit losses Quarterly Income Statement Summary (in thousands, except per share data) | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Total Interest Income | $8,074 | $5,781 | | Total Interest Expense | $2,790 | $476 | | Net Interest Income | $5,284 | $5,305 | | Provision for Credit Losses | $0 | $418 | | Net Income | $1,220 | $1,671 | | Diluted Earnings Per Share | $0.39 | $0.52 | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) Total comprehensive income for Q3 2023 significantly decreased to $408,000 from $793,000 in 2022, driven by lower net income and an $812,000 other comprehensive loss from unrealized securities losses Comprehensive Income (in thousands) | Component | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net Income | $1,220 | $1,671 | | Other Comprehensive Loss, Net of Tax | ($812) | ($878) | | **Total Comprehensive Income** | **$408** | **$793** | [Consolidated Statements of Changes in Stockholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Stockholders%27%20Equity) Stockholders' equity decreased from $50.54 million to $50.47 million, primarily due to a $189,000 accounting change, $392,000 in dividends, and an $812,000 unrealized loss on securities, partially offset by $1.22 million net income - Key drivers for the change in stockholders' equity during the quarter included: - Net Income: **+$1,220,000** - Dividends Declared: **-$392,000** - Unrealized Loss on Securities: **-$812,000** - Cumulative Effect of ASU 2016-13 Adoption: **-$189,000**[16](index=16&type=chunk) [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For Q3 2023, the company experienced a net decrease in cash and cash equivalents of $15.9 million, primarily due to $18.1 million used in investing activities for loan originations, partially offset by $2.4 million from operating activities Cash Flow Summary (in thousands) | Cash Flow Category | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Net Cash Provided by Operating Activities | $2,445 | $4,335 | | Net Cash Used in Investing Activities | ($18,145) | ($20,626) | | Net Cash Used in Financing Activities | ($187) | ($10,256) | | **Net Decrease in Cash and Cash Equivalents** | **($15,887)** | **($26,547)** | [Notes to Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes detail accounting policies, notably the July 1, 2023, adoption of ASU 2016-13 (CECL) increasing allowance for credit losses by $359,000, alongside significant unrealized losses on securities, growth in the loan portfolio to $511.8 million, and fair value disclosures - The Company adopted ASU 2016-13 (CECL) on July 1, 2023, which requires earlier measurement of credit losses on financial instruments, resulting in a one-time cumulative adjustment to retained earnings[70](index=70&type=chunk) Impact of Adopting ASU 2016-13 (in thousands) | Item | Balance June 30, 2023 (in thousands) | Impact of Adoption (in thousands) | Balance after Adoption (in thousands) | | :--- | :--- | :--- | :--- | | Allowance for credit losses - loans | $5,173 | $359 | $5,532 | - As of September 30, 2023, the loan portfolio totaled **$511.8 million**, an increase from **$494.8 million** at June 30, 2023, with the allowance for credit losses standing at **$5.1 million**[93](index=93&type=chunk) - Unrealized losses on mortgage-backed securities were attributed to changes in interest rates, not credit quality, and no allowance for credit losses was recorded as the company intends to hold these investments until recovery[89](index=89&type=chunk) [Item 2: Management's Discussion and Analysis of Financial Condition and Results of Operations](index=37&type=section&id=Item%202%3A%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management attributes the 0.3% asset increase to loan growth funded by decreased cash, while quarterly net income declined due to net interest margin compression from 3.90% to 3.37% and higher non-interest expenses, despite strong liquidity and capital positions [Discussion of Financial Condition Changes](index=38&type=section&id=Discussion%20of%20Financial%20Condition%20Changes) From June 30 to September 30, 2023, total assets increased by $1.7 million to $662.6 million, driven by a $17.1 million (3.5%) rise in net loans funded by a $15.9 million (64.2%) decrease in cash, while deposits and equity saw minor declines - Net loans receivable increased by **$17.1 million (3.5%)**, primarily driven by growth in one-to-four-family residential, construction, and land loans[168](index=168&type=chunk) - Cash and cash equivalents decreased by **$15.9 million (64.2%)** primarily to fund the growth in loan originations[167](index=167&type=chunk) - Stockholders' equity decreased by **$69,000** due to dividends (**$392,000**), CECL implementation (**$189,000**), and a decrease in accumulated other comprehensive income (**$812,000**), partially offset by net income of **$1.2 million**[175](index=175&type=chunk) [Comparison of Operating Results](index=40&type=section&id=Comparison%20of%20Operating%20Results) Net income for Q3 2023 decreased by $451,000 due to a $21,000 decline in net interest income from interest expense growth outpacing interest income, net interest margin compression to 3.37%, a $112,000 fall in non-interest income, and a $435,000 rise in non-interest expense Net Interest Margin and Spread Comparison | Metric | Three Months Ended Sep 30, 2023 | Three Months Ended Sep 30, 2022 | | :--- | :--- | :--- | | Average Interest Rate Spread | 2.68% | 3.74% | | Net Interest Margin | 3.37% | 3.90% | - Non-interest income decreased by **$112,000**, primarily due to a **$137,000** decrease in gain on sale of loans as refinance activity slowed and the company held more adjustable-rate mortgages in its portfolio[183](index=183&type=chunk) - Non-interest expense increased by **$435,000**, with notable increases in amortization of core deposit intangible (**$94k**), compensation and benefits (**$74k**), and advertising (**$69k**)[184](index=184&type=chunk) [Liquidity and Capital Resources](index=43&type=section&id=Liquidity%20and%20Capital%20Resources) The Bank maintains adequate liquidity through deposits, loan and security repayments, and available credit lines, including **$198.1 million** in FHLB borrowing capacity, while regulatory capital levels remain strong with a total risk-based capital ratio of **13.87%** - The Bank has access to significant additional funding, including **$198.1 million** in borrowing capacity from the FHLB of Dallas and an **$11.0 million** line of credit with First National Bankers Bank[195](index=195&type=chunk) Regulatory Capital Ratios as of September 30, 2023 | Ratio | Value | | :--- | :--- | | Tangible Equity | 8.91% | | Common Equity Tier 1 | 12.76% | | Core Capital | 8.91% | | Total Risk-Based Capital | 13.87% | [Item 3: Quantitative and Qualitative Disclosures About Market Risk](index=44&type=section&id=Item%203%3A%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) This item is not applicable for the reporting period - The company has indicated that quantitative and qualitative disclosures about market risk are not applicable for this filing[203](index=203&type=chunk) [Item 4: Controls and Procedures](index=44&type=section&id=Item%204%3A%20Controls%20and%20Procedures) Management, including the CEO and CFO, concluded that the company's disclosure controls and procedures were effective as of the reporting period, with no material changes to internal control over financial reporting during the quarter - The President and Chief Executive Officer and the Chief Financial Officer concluded that the company's disclosure controls and procedures are effective[204](index=204&type=chunk) - No material changes to the company's internal control over financial reporting occurred during the most recent fiscal quarter[205](index=205&type=chunk) [PART II OTHER INFORMATION](index=45&type=section&id=PART%20II%20OTHER%20INFORMATION) [Item 1: Legal Proceedings](index=45&type=section&id=Item%201%3A%20Legal%20Proceedings) The company is not involved in any material pending legal proceedings beyond routine matters occurring in the ordinary course of business - The Company is not involved in any material pending legal proceedings outside of the ordinary course of business[208](index=208&type=chunk) [Item 2: Unregistered Sales of Equity Securities and Use of Proceeds](index=45&type=section&id=Item%202%3A%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any common stock during the quarter ended September 30, 2023 - No shares of common stock were repurchased by the Company during the three months ended September 30, 2023[210](index=210&type=chunk) [Other Items (1A, 3, 4, 5)](index=45&type=section&id=Other%20Items%20%281A%2C%203%2C%204%2C%205%29) No disclosures are provided for Risk Factors, Defaults Upon Senior Securities, Mine Safety Disclosures, or Other Information, as these items were not applicable for the reporting period - The following items were reported as 'Not applicable': Risk Factors, Defaults Upon Senior Securities, Mine Safety Disclosures, and Other Information[209](index=209&type=chunk)[212](index=212&type=chunk)[213](index=213&type=chunk)[214](index=214&type=chunk)