Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Three Months and Year Ended June 30, 2025

Core Viewpoint - Home Federal Bancorp, Inc. of Louisiana reported a significant increase in net income for both the quarterly and annual periods ending June 30, 2025, driven by higher net interest income and non-interest income, despite increases in tax provisions and some expenses [1][3]. Financial Performance - For the three months ended June 30, 2025, net income was $1.2 million, up from $638,000 in the same period of 2024, with earnings per share increasing to $0.39 from $0.21 [1]. - For the year ended June 30, 2025, net income rose to $3.9 million from $3.6 million in 2024, with earnings per share increasing to $1.27 from $1.18 [1][3]. Income Sources - The increase in net income for the three months was primarily due to a $612,000 (14.2%) rise in net interest income and a $173,000 (34.2%) increase in non-interest income, partially offset by a $188,000 (101.1%) rise in income tax provision [2]. - For the year, the increase in net income was attributed to a $421,000 (26.6%) rise in non-interest income and a $166,000 recovery in credit losses, despite a $290,000 (60.9%) increase in income tax provision [3]. Interest Income and Expenses - The average interest rate spread improved to 2.89% for the three months ended June 30, 2025, compared to 2.15% in 2024, while the net interest margin increased to 3.52% from 2.91% [2]. - For the year, the average interest rate spread was 2.55%, up from 2.38%, and the net interest margin was 3.23%, compared to 3.08% in the previous year [3]. Asset and Liability Management - Total assets decreased by $28.0 million (4.4%) from $637.5 million at June 30, 2024, to $609.5 million at June 30, 2025, primarily due to a $17.6 million (50.4%) decrease in cash and cash equivalents [9]. - Total liabilities decreased by $30.4 million (5.2%) from $584.7 million to $554.3 million, with total deposits declining by $27.7 million (4.8%) [10]. Stockholders' Equity - Stockholders' equity increased by $2.4 million (4.5%) from $52.8 million at June 30, 2024, to $55.2 million at June 30, 2025, driven by net income and a decrease in accumulated other comprehensive loss [12]. Non-Performing Assets - Non-performing assets rose to $3.3 million at June 30, 2025, from $1.9 million at June 30, 2024, indicating a deterioration in asset quality [11].