Home Federal Bancorp(US:HFBL)2025-09-26 19:42Financial Performance - Home Federal Bancorp reported a net income of $3.9 million for fiscal 2025, an increase from $3.6 million in fiscal 2024[173]. - Net income for the year ended June 30, 2025, increased by $421,000, or 26.6%, compared to the previous year, driven by a rise in non-interest income and a decrease in non-interest expense[203]. - Home Federal Bancorp's return on average assets improved to 0.63% in 2025 from 0.55% in 2024[188]. Interest Income and Expenses - Total interest income decreased from $31.9 million in 2024 to $30.5 million in 2025, while total non-interest income increased from $1.6 million to $2.0 million[187]. - Net interest income decreased by $280,000, or 1.5%, to $18.7 million for fiscal year 2025, primarily due to a $1.4 million decrease in total interest income[204]. - Total interest income decreased by $1.4 million, or 4.4%, to $30.5 million for fiscal 2025, mainly due to a $1.7 million decrease in interest income from loans[206]. - Interest expense decreased by $1.1 million, or 8.7%, to $11.8 million for fiscal 2025, primarily due to lower rates on money market accounts and certificates of deposit[207]. Asset and Liability Management - Total assets decreased from $637.5 million in 2024 to $609.5 million in 2025, with total deposits also declining from $574.0 million to $546.3 million[187]. - Total assets decreased by $28.0 million, or 4.4%, from $637.5 million at June 30, 2024, to $609.5 million at June 30, 2025[191]. - Total liabilities decreased by $30.4 million, or 5.2%, from $584.7 million at June 30, 2024, to $554.3 million at June 30, 2025, primarily due to a $27.7 million decrease in total deposits[195]. - Stockholders' equity increased by $2.4 million, or 4.5%, from $52.8 million at June 30, 2024, to $55.2 million at June 30, 2025, driven by net income of $3.9 million for the year[196]. Loan Portfolio and Asset Quality - The company plans to emphasize the origination of commercial real estate and business loans, which accounted for 29.8% and 11.6% of the total loan portfolio, respectively, as of June 30, 2025[178]. - Net loans receivable decreased by $9.9 million, or 2.1%, from $470.9 million at June 30, 2024, to $461.0 million at June 30, 2025, with commercial real estate loans comprising 29.8% of the total loan portfolio[192]. - The company intends to maintain high asset quality, with non-performing loans as a percentage of loans receivable increasing to 0.51% in 2025 from 0.32% in 2024[188]. - Non-performing assets as a percentage of total assets rose to 0.54% in 2025 from 0.30% in 2024[188]. - Non-performing assets increased to $3.3 million as of June 30, 2025, compared to $1.9 million in the prior year[209]. Operational Efficiency - The efficiency ratio improved to 78.11% in 2025 from 79.99% in 2024, indicating better cost management[188]. - Non-interest expense decreased by $278,000 for the year ended June 30, 2025, mainly due to reductions in compensation and benefits, franchise taxes, and advertising expenses[211]. Forward-Looking Statements and Risks - Home Federal Bancorp's forward-looking statements include financial projections and expectations regarding future operations and performance[225]. - The company acknowledges inherent uncertainties in its forward-looking statements, which may differ materially from actual results[225]. - Key risks affecting future performance include economic conditions, competitive pressures, and changes in interest rates[225]. - The company does not undertake any obligation to update forward-looking statements after their initial release[225].