Home Federal Bancorp(HFBL) - 2025 Q4 - Annual Results

Financial Highlights and Performance Overview Overall Financial Performance Home Federal Bancorp, Inc. reported significant increases in net income and earnings per share for both the three months and year ended June 30, 2025, compared to the prior year periods Net Income and EPS Performance | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------- | :-------- | :-------- | :-------------- | :-------- | :-------- | :-------------- | | Net Income | $1.2M | $638K | +88.1% | $3.9M | $3.6M | +8.3% | | Basic EPS | $0.39 | $0.21 | +85.7% | $1.27 | $1.18 | +7.6% | | Diluted EPS | $0.38 | $0.21 | +80.9% | $1.26 | $1.17 | +7.7% | Key Financial Ratios The Company demonstrated improved profitability metrics, with increases in average interest rate spread and net interest margin for both the quarter and the full year ended June 30, 2025 Key Profitability Ratios | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :------------------------- | :------ | :------ | :-------------- | :------ | :------ | :-------------- | | Average Interest Rate Spread | 2.89% | 2.15% | +0.74 pp | 2.55% | 2.38% | +0.17 pp | | Net Interest Margin | 3.52% | 2.91% | +0.61 pp | 3.23% | 3.08% | +0.15 pp | Balance Sheet Highlights Book value per share increased, and the company reduced its other borrowings, while FHLB advances remained at zero at year-end Selected Balance Sheet Items | Metric | June 30, 2025 | June 30, 2024 | Change |\n| :----------------- | :------------ | :------------ | :----- | | Book Value Per Share | $17.66 | $16.80 | +$0.86 |\n| Other Borrowings | $4.0M | $7.0M | -$3.0M |\n| FHLB Advances | $0 | $0 | $0 | Detailed Income Statement Analysis Net Interest Income Net interest income increased for the three months ended June 30, 2025, primarily due to a significant decrease in interest expense. However, for the full year, net interest income slightly decreased due to a larger decline in interest income Net Interest Income Performance | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------------- | :-------- | :-------- | :-------------- | :--------- | :--------- | :-------------- | | Net Interest Income | $4.973M | $4.360M | +$613K (+14.1%) | $18.671M | $18.951M | -$280K (-1.5%) | Interest Income Interest income decreased for both the quarter and the full year, primarily due to lower income from other interest-earning assets and loans Total Interest Income | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------------- | :-------- | :-------- | :-------------- | :--------- | :--------- | :-------------- | | Total Interest Income | $7.638M | $7.819M | -$181K (-2.3%) | $30.462M | $31.864M | -$1.4M (-4.4%) | - The decrease in total interest income for Q4 2025 was primarily due to lower income from other interest-earning assets, partially offset by increases in investment securities and mortgage-backed securities income[2][3][20] - For the full year, the decrease was mainly driven by lower income from loans and investment securities[2][3][20] Interest Expense Interest expense decreased for both periods, mainly driven by lower interest paid on deposits and other bank borrowings Total Interest Expense | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------------- | :-------- | :-------- | :-------------- | :--------- | :--------- | :-------------- | | Total Interest Expense | $2.665M | $3.459M | -$794K (-23.0%) | $11.791M | $12.913M | -$1.1M (-8.7%) | - The decrease in total interest expense for both periods was primarily due to lower interest paid on deposits and other bank borrowings[2][3][20] Non-Interest Income Non-interest income increased significantly for both the three-month and full-year periods, driven by gains on loan sales and other income, and for the year, a reduced loss on real estate sales Total Non-Interest Income | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------------- | :------ | :------ | :-------------- | :------ | :------ | :-------------- | | Total Non-Interest Income | $679K | $506K | +$173K (+34.2%) | $2.005M | $1.584M | +$421K (+26.6%) | - Key drivers for the increase in non-interest income include: - Q4 2025: Increase in gain on sale of loans (+$122K), service charges on deposit accounts (+$30K), and other non-interest income (+$19K)[2][3][6] - FY 2025: Decrease in loss on sale of real estate (+$150K), increase in other non-interest income (+$134K), and increase in gain on sale of loans (+$119K)[2][3][6] Non-Interest Expense Non-interest expense slightly increased for the three-month period but decreased for the full year. The annual decrease was primarily due to significant reductions in compensation and benefits, franchise tax, and advertising, despite a substantial increase in data processing expense related to a billing settlement Total Non-Interest Expense | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------------- | :-------- | :-------- | :-------------- | :--------- | :--------- | :-------------- | | Total Non-Interest Expense | $4.051M | $3.997M | +$54K (+1.4%) | $16.148M | $16.426M | -$278K (-1.7%) | - Key changes in non-interest expense: - Q4 2025 increases: Data processing (+$190K), occupancy and equipment (+$66K), audit and examination fees (+$31K)[2][3][7] - Q4 2025 decreases: Compensation and benefits (-$114K), advertising (-$36K), franchise and bank shares tax (-$33K)[2][3][7] - FY 2025 decreases: Compensation and benefits (-$584K), franchise and bank shares tax (-$217K), advertising (-$215K)[2][3][7] - FY 2025 increases: Data processing (+$784K), occupancy and equipment (+$152K), audit and examination fees (+$48K)[2][3][7] - The significant increase in data processing expense for both periods resulted from a negotiated discounted settlement to resolve outstanding invoices for certain services dating back to December 2022, due to a billing discrepancy with the core processor[7] Provision for Credit Losses The provision for credit losses slightly increased for the three-month period but showed a recovery for the full year, indicating a net reduction in credit loss reserves over the annual period Provision for (Recovery of) Credit Losses | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :---------------------------------------- | :------ | :------ | :-------------- | :------ | :------ | :-------------- | | Provision for (Recovery of) Credit Losses | $46K | $45K | +$1K (+2.2%) | -$126K | $40K | -$166K | Provision for Income Taxes The provision for income taxes increased substantially for both the three-month and full-year periods, reflecting the higher pre-tax income Provision for Income Tax Expense | Metric | Q4 2025 | Q4 2024 | YoY Change (Q4) | FY 2025 | FY 2024 | YoY Change (FY) | | :------------------------- | :------ | :------ | :-------------- | :------ | :------ | :-------------- | | Provision for Income Tax Expense | $374K | $186K | +$188K (+101.1%)| $766K | $476K | +$290K (+60.9%) | Detailed Balance Sheet Analysis Assets Total assets decreased by 4.4% year-over-year, primarily driven by significant reductions in cash and cash equivalents and net loans receivable, partially offset by increases in real estate owned and investment securities Total Assets | Metric | June 30, 2025 | June 30, 2024 | Change | | :---------- | :------------ | :------------ | :------------ | | Total Assets| $609.5M | $637.5M | -$28.0M (-4.4%)| - Major decreases in assets include: - Cash and cash equivalents: -$17.6M (-50.4%)[8] - Net loans receivable: -$9.9M (-2.1%)[8] - Premises and equipment: -$1.0M (-5.7%)[8] - Major increases in assets include: - Real estate owned: +$552K (+132.1%)[8] - Investment securities: +$277K (+0.3%)[8] Liabilities Total liabilities decreased by 5.2% year-over-year, mainly due to reductions in total deposits and other borrowings, partially offset by increases in other accrued expenses and advances from borrowers for taxes and insurance Total Liabilities | Metric | June 30, 2025 | June 30, 2024 | Change | | :------------- | :------------ | :------------ | :------------ | | Total Liabilities| $554.3M | $584.7M | -$30.4M (-5.2%)| - Major decreases in liabilities include: - Total deposits: -$27.7M (-4.8%)[9] - Other borrowings: -$3.0M (-42.9%)[9] - Major increases in liabilities include: - Other accrued expenses and liabilities: +$273K (+8.6%)[9] - Advances from borrowers for taxes and insurance: +$22K (+4.2%)[9] - The decrease in deposits was driven by reductions in certificates of deposit (-$27.5M), money market deposits (-$11.7M), and non-interest deposits (-$7.9M), partially offset by increases in savings deposits (+$19.0M) and NOW accounts (+$506K)[9] Stockholders' Equity Stockholders' equity increased by 4.5% year-over-year, primarily due to net income, a decrease in accumulated other comprehensive loss, and stock-based compensation/issuance, partially offset by dividends paid and stock repurchases Total Stockholders' Equity | Metric | June 30, 2025 | June 30, 2024 | Change | | :----------------- | :------------ | :------------ | :------------ | | Total Stockholders' Equity | $55.2M | $52.8M | +$2.4M (+4.5%)| - Key drivers for the increase in stockholders' equity include: - Net income for the year: +$3.9M[12] - Decrease in accumulated other comprehensive loss: +$681K[12] - Vesting of restricted stock awards, stock options, and ESOP shares: +$425K[12] - Proceeds from common stock issuance: +$111K[12] - Partially offset by: - Dividends paid: -$1.6M[12] - Stock repurchases: -$1.1M[12] Asset Quality Non-performing assets increased significantly year-over-year, rising to 0.54% of total assets. The allowance for credit losses as a percentage of non-performing loans decreased, while as a percentage of total loans, it remained stable Asset Quality Ratios | Metric | June 30, 2025 | June 30, 2024 | Change |\n| :----------------------------------------- | :------------ | :------------ | :----- | | Non-performing assets | $3.3M | $1.9M | +$1.4M |\n| Non-performing assets as a percent of total assets | 0.54% | 0.31% | +0.23 pp |\n| Allowance for credit losses as a percent of non-performing loans | 191.99% | 228.70% | -36.71 pp |\n| Allowance for credit losses as a percent of total loans receivable | 0.96% | 0.96% | 0.00 pp | - Non-performing assets at June 30, 2025, consisted of six one-to-four family residential loans, two home equity loans, three commercial non-real estate loans, two commercial real-estate loans, and one single-family residence in other real estate owned[10] Company Information and Disclosures Business Description Home Federal Bancorp, Inc. of Louisiana serves as the holding company for Home Federal Bank, which operates through ten full-service banking offices and a home office located in northwest Louisiana - Home Federal Bank conducts business from its ten full-service banking offices and home office in northwest Louisiana[13] Forward-Looking Statements & Risk Factors The report includes forward-looking statements and outlines various risk factors that could cause actual results to differ from expectations, such as economic conditions, legislative and regulatory changes, interest rate fluctuations, and asset quality - Forward-looking statements are identified by words like 'believe', 'expect', 'anticipate', 'estimate', and 'intend', or future/conditional verbs, and the Company undertakes no obligation to update them[14] - Key risk factors include: strength of the U.S. and local economies, general economic conditions, legislative and regulatory changes, monetary and fiscal policies, changes in tax policies, interest rate changes, deposit flows, demand for loan products, competition, changes in asset quality, geographic concentration, real estate values, adequacy of loan loss reserves, goodwill impairment, and changes in accounting principles[15] Contact Information Contact information for investor inquiries is provided, listing the Chairman of the Board, President, and Chief Executive Officer - Contact: James R. Barlow, Chairman of the Board, President and Chief Executive Officer, (318) 222-1145[23] Consolidated Financial Statements and Notes Consolidated Balance Sheets This section presents the detailed consolidated balance sheets for Home Federal Bancorp, Inc. of Louisiana as of June 30, 2025, and June 30, 2024, outlining the company's assets, liabilities, and stockholders' equity - The full Consolidated Balance Sheets are provided, detailing assets such as cash and cash equivalents, securities, loans receivable, premises and equipment, and liabilities including deposits, borrowings, and stockholders' equity[17][18] Consolidated Statements of Operations This section provides the detailed consolidated statements of operations for the three months and year ended June 30, 2025, and 2024, covering interest income and expense, non-interest income and expense, provision for credit losses, income taxes, and net income - The full Consolidated Statements of Operations are presented, showing a breakdown of interest income (loans, securities), interest expense (deposits, borrowings), net interest income, provision for credit losses, non-interest income, non-interest expense, income before taxes, provision for income tax expense, and net income[19][20] Selected Operating and Per Share Data This section presents key financial ratios, including selected operating ratios, asset quality ratios, and per share data, for the three months and year ended June 30, 2025, and 2024 - The report includes tables for Selected Operating Ratios (average interest rate spread, net interest margin, return on average assets, return on average equity), Asset Quality Ratios (non-performing assets as a percent of total assets, allowance for credit losses as a percent of non-performing loans and total loans), and Per Share Data (shares outstanding, weighted average shares outstanding)[21][22]