Home Federal Bancorp(HFBL) - 2024 Q4 - Annual Results

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]