Home Federal Bancorp(HFBL) - 2025 Q2 - Quarterly Report

Financial Performance - Net interest income for the three months ended December 31, 2024, was $4,600,000, down from $4,903,000 for the same period in 2023, a decrease of about 6.2%[10] - Net income for the three months ended December 31, 2024, was $1,020,000, compared to $1,003,000 for the same period in 2023, reflecting a slight increase of 1.7%[10] - Non-interest income for the three months ended December 31, 2024, was $488,000, compared to $137,000 for the same period in 2023, indicating a significant increase of 255.5%[10] - Total non-interest expense for the three months ended December 31, 2024, was $3,836,000, down from $4,249,000 for the same period in 2023, a decrease of about 9.7%[10] - Net income for the six months ended December 31, 2024, was $1,961,000, compared to $2,223,000 for the same period in 2023, indicating a decrease of about 11.8%[21] - The company reported a net cash provided by operating activities of $3,461,000 for the six months ended December 31, 2024, compared to a net cash used of $190,000 in the same period of 2023[21] - The total comprehensive income for the three months ended December 31, 2024, was $8,000, compared to $2,347,000 for the same period in 2023, indicating a significant decrease[12] - The total comprehensive income for the six months ended December 31, 2024, included an unrealized loss on debt securities of $10,000, compared to an unrealized gain of $532,000 in the same period of 2023[22] Assets and Liabilities - Total assets decreased from $637,512,000 on June 30, 2024, to $607,763,000 on December 31, 2024, representing a decline of approximately 4.7%[8] - Total deposits decreased from $574,007,000 on June 30, 2024, to $546,544,000 on December 31, 2024, a reduction of approximately 4.8%[8] - Total cash and cash equivalents at the end of the period were $19,540,000, down from $34,948,000 at the beginning of the period, representing a decrease of approximately 44%[22] - Total liabilities decreased by $30.9 million, or 5.3%, from $584.7 million at June 30, 2024 to $553.8 million at December 31, 2024[176] - Shareholders' equity increased by $1.1 million, or 2.1%, from $52.8 million at June 30, 2024 to $53.9 million at December 31, 2024, driven by net income of $2.0 million[177] Loans and Credit Quality - As of December 31, 2024, total loans receivable amounted to $463.5 million, a decrease from $475.5 million as of June 30, 2024, representing a decline of approximately 2.2%[94] - The net loans receivable after allowance for credit losses was $458.7 million at December 31, 2024, compared to $470.9 million at June 30, 2024, indicating a reduction of about 2.6%[94] - The allowance for credit losses increased from $4.57 million as of June 30, 2024, to $4.75 million as of December 31, 2024, marking an increase of approximately 4.0%[94] - The overall financial health of the loan portfolio appears stable, with a majority of loans rated as "Pass" across all categories[107] - As of December 31, 2024, total past due loans amounted to $6,052,000, with $1,822,000 being more than 90 days past due, representing a significant increase from $2,900,000 total past due loans as of June 30, 2024[114] Earnings Per Share - Basic earnings per share for the three months ended December 31, 2024, remained stable at $0.33, unchanged from the same period in 2023[10] - Basic and diluted earnings per share for the six months ended December 31, 2024, were $0.64, down from $0.73 for the same period in 2023[70] - Diluted earnings per share for the six months ended December 31, 2024, was $0.64, compared to $0.72 for the same period in 2023, indicating a decrease of approximately 11.1%[124] Credit Losses and Provisions - The provision for credit losses for the three months ended December 31, 2024, was a recovery of $45,000, compared to a recovery of $16,000 for the same period in 2023[10] - The company recognized no interest income on non-accrual loans for the six months ended December 31, 2024, and the potential gross interest income that could have been recorded was approximately $54,000[114] Regulatory and Compliance - Home Federal Bank's common equity tier 1 ratio was 13.23% at December 31, 2024, exceeding minimum capital requirements[178] - The Bank's tangible common equity tier 1 ratio was 13.23% as of December 31, 2024, exceeding regulatory capital requirements[202] Miscellaneous - The Company has implemented the current expected credit loss (CECL) model effective July 1, 2023, to estimate the allowance for credit losses (ACL) on loans[45] - The Company held no trading securities as of December 31, 2024, and June 30, 2024[37] - The Bank's investment in Federal Home Loan Bank (FHLB) stock is reflected at cost, as required by FHLB membership[40] - The Company has one wholly-owned subsidiary, Metro Financial Services, Inc., which does not currently engage in a meaningful amount of business[30]