Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three Months and Year Ended June 30, 2024

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]