Home Federal Bancorp, Inc. of Louisiana (the "Company")
(Nasdaq:HFBL), the holding company of Home Federal Bank, reported
net income for the three months ended March 31, 2013 of $676,000,
an increase of $89,000 compared to net income of $587,000 reported
for the three months ended March 31, 2012. The Company's basic and
diluted earnings per share were $0.31 and $0.30, respectively, for
the quarter ended March 31, 2013, compared to basic and diluted
earnings per share of $0.21 for the quarter ended March 31, 2012.
The Company reported net income of $2.5 million for the nine
months ended March 31, 2013, an increase of $426,000 compared to
$2.1 million reported for the nine months ended March 31, 2012. The
Company's basic and diluted earnings per share were $1.04 and
$1.01, respectively, for the nine months ended March 31, 2013,
compared to basic and diluted earnings per share of $0.73 for the
nine months ended March 31, 2012.
The increase in net income for the three months ended March 31,
2013, resulted primarily from a $126,000, or 5.0%, increase in net
interest income, an $81,000, or 3.5%, decrease in non-interest
expense, and a $2,000, or 0.9%, decrease in the provision for loan
losses, partially offset by a decrease of $56,000, or 6.8%, in
non-interest income and a $64,000, or 24.7%, increase in income tax
expense. The increase in net interest income for the three months
ended March 31, 2013, was primarily due to a decrease of $126,000,
or 16.9%, in aggregate interest expense on borrowings and deposits
primarily due to an overall decrease in rates paid on
interest-bearing liabilities. Total interest income was constant at
$3.3 million for both three month periods. The Company's average
interest rate spread was 3.80% for the three months ended March 31,
2013, compared to 3.75% for the prior year period. The Company's
net interest margin was 4.03% for the three months ended March 31,
2013, compared to 4.11% for the quarter ended March 31, 2012. The
decrease in net interest margin on a comparative quarterly basis
was primarily the result of a higher average volume of interest
earnings assets and a decrease of 36 basis points in average yield
on interest-earning assets for the quarter ended March 31, 2013
compared to the prior year quarterly period.
The increase in net income for the nine months ended March 31,
2013, resulted primarily from a $911,000, or 12.9%, increase in net
interest income, a $150,000, or 6.1%, increase in non-interest
income, and a $49,000, or 10.0%, decrease in the provision for loan
losses, partially offset by an increase of $308,000, or 5.1%, in
non-interest expense and a $376,000, or 44.0%, increase in income
tax expense. The increase in net interest income for the nine month
period was primarily due to an increase in total interest income as
a result of an increase in the volume of interest-earning assets
combined with a decrease in interest expense on borrowings and
deposits due to an overall decline in the average cost of funds.
The Company's average interest rate spread was 3.80% for the nine
months ended March 31, 2013, compared to 3.57% for the nine months
ended March 31, 2012. The Company's net interest margin was 4.08%
for the nine months ended March 31, 2013, compared to 3.97% for the
nine months ended March 31, 2012. The increase in net interest
margin and average interest rate spread is attributable primarily
to the implementation of management's strategy to enhance our core
earnings by increasing commercial loan volume and related income in
conjunction with decreasing costs associated with deposits and
advances from the Federal Home Loan Bank.
The following tables set forth the Company's average balance and
average yields earned and rates paid on its interest-earning assets
and interest-bearing liabilities for the three and nine months
ended March 31, 2013 and 2012.
|
For the Three
Months Ended March 31, |
|
2013 |
2012 |
|
Average
Balance |
Average
Yield/Rate |
Average
Balance |
Average
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Investment
securities |
$ 55,851 |
2.78% |
$ 76,900 |
3.34% |
Loans receivable |
201,100 |
5.73 |
164,113 |
6.40 |
Interest-earning
deposits |
6,352 |
0.12 |
4,332 |
0.28 |
Total interest-earning
assets |
$ 263,303 |
4.97% |
$ 245,345 |
5.33% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
$ 7,948 |
0.22% |
$ 6,471 |
0.93% |
NOW accounts |
21,776 |
0.77 |
19,069 |
0.36 |
Money market
accounts |
38,533 |
0.37 |
37,404 |
0.53 |
Certificates of
deposit |
110,439 |
1.67 |
101,053 |
2.09 |
Total interest-bearing
deposits |
178,696 |
1.22 |
163,997 |
1.49 |
FHLB advances |
33,567 |
0.91 |
25,404 |
2.16 |
Total interest-bearing
liabilities |
$ 212,263 |
1.17% |
$ 189,401 |
1.58% |
|
|
|
For the Nine
Months Ended March 31, |
|
2013 |
2012 |
|
Average
Balance |
Average
Yield/Rate |
Average
Balance |
Average
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Investment securities |
$ 60,601 |
2.94% |
$ 78,664 |
3.33% |
Loans receivable |
193,450 |
5.90 |
150,167 |
6.57 |
Interest-earning deposits |
5,917 |
0.22 |
7,366 |
0.20 |
Total interest-earning
assets |
$ 259,968 |
5.08% |
$ 236,197 |
5.29% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
$ 7,140 |
0.26% |
$ 6,519 |
0.90% |
NOW accounts |
19,719 |
0.80 |
16,926 |
0.58 |
Money market accounts |
40,363 |
0.43 |
36,326 |
0.61 |
Certificates of deposit |
108,357 |
1.76 |
94,930 |
2.21 |
Total interest-bearing
deposits |
175,579 |
1.29 |
154,701 |
1.60 |
FHLB advances |
28,773 |
1.24 |
25,962 |
2.43 |
Total interest-bearing
liabilities |
$ 204,352 |
1.28% |
$ 180,663 |
1.72% |
The $56,000 decrease in non-interest income for the quarter
ended March 31, 2013, compared to the prior year quarterly period
was due to decreases of $31,000 in other non-interest income,
$19,000 in gain on sale of loans and $6,000 in income from bank
owned life insurance. The $150,000 increase in non-interest income
for the nine months ended March 31, 2013, compared to the prior
year period was primarily due to an increase of $228,000 in gain on
loans held for sale, partially offset by decreases of $39,000 in
gain on sale of securities, $22,000 in other non-interest income
and $17,000 in income from bank owned life insurance. The Company
sells most of its fixed rate mortgage loan originations other than
those loans selected for portfolio.
The $81,000 decrease in non-interest expense for the three
months ended March 31, 2013 compared to 2012 was primarily due to
decreases of $51,000 in audit and examination fees, $42,000 in
occupancy and equipment expense, $35,000 in loan and collection
expense, $29,000 in compensation and benefits expense and $9,000 in
advertising expense. These decreases were partially offset by
increases of $46,000 in data processing costs and $38,000 in legal
fees. The $308,000 increase in non-interest expense for the nine
months ended March 31, 2013 compared to 2012 was primarily due to
increases in compensation and benefits expense of $310,000, due in
part to increasing loan volume and related commissions to
commercial and residential loan officers, as well as increases of
$67,000 in data processing costs and $82,000 in legal expenses.
These increases were partially offset by decreases of $60,000 in
audit and examination fees, $30,000 in loan and collection expense,
$26,000 in advertising expense, $19,000 in occupancy and equipment
expense and $22,000 other non-interest expenses. Additions to the
provision for loan losses during the quarter and nine months ended
March 31, 2013, reflects the increase in loan loss allowances
deemed necessary by management for risks associated with the
increasing volume of non-residential and commercial loans.
At March 31, 2013, the Company reported total assets of $276.2
million, a decrease of $20.0 million, or 6.7%, compared to total
assets of $296.2 million at June 30, 2012. The decrease in assets
was comprised primarily of decreases in investment securities of
$14.6 million, or 20.9%, from $69.8 million at June 30, 2012, to
$55.2 million at March 31, 2013, loans held-for-sale of $7.0
million, or 62.6%, from $11.2 million at June 30, 2012 to $4.2
million at March 31, 2013, and a decrease in cash and cash
equivalents of $27.8 million, or 79.9%, from $34.9 million at June
30, 2012 to $7.0 million at March 31, 2013, partially offset by an
increase in net loans receivable of $28.2 million, or 16.7% from
$168.3 million at June 30, 2012 to $196.4 million at March 31,
2013. The decrease in cash and cash equivalents was due to a
non-recurring deposit in the quarter ended June 30, 2012 which had
a balance of approximately $31.7 million at June 30, 2012. The
deposit was short-term in nature and was fully withdrawn during the
quarter ended September 30, 2012. The decrease in investment
securities was due to sales and principal repayments during the
nine months ended March 31, 2013. The decrease in loans
held-for-sale primarily reflects a decrease at March 31, 2013 in
receivables from financial institutions purchasing the Company's
loans held-for-sale.
The following table shows total loans originated and sold during
the periods indicated.
|
Nine Months
Ended March 31, |
|
|
2013 |
2012 |
% Change |
|
(In thousands) |
|
Loan originations: |
|
|
|
One- to four-family
residential |
$ 124,945 |
$ 120,762 |
3.46% |
Commercial — real estate
secured (owner occupied and non-owner occupied) |
13,780 |
10,016 |
37.58% |
Multi-family residential |
7,289 |
4,751 |
53.42% |
Commercial business |
5,787 |
8,870 |
(34.76)% |
Land |
4,164 |
1,527 |
172.69% |
Construction |
22,562 |
30,777 |
(26.69)% |
Home equity loans and lines of
credit and other consumer |
2,228 |
7,860 |
(71.65)% |
Total loan originations |
$ 180,755 |
$ 184,563 |
(2.06)% |
Loans sold |
$ 91,702 |
$ 87,520 |
4.78% |
Included in the $22.6 million of construction loan
originations for the nine months ended March 31, 2013 are
approximately $19.8 million of one- to four-family residential
construction loans and $2.8 million of commercial and multi-family
construction loans, each of which are primarily located in the
Company's market area.
Total liabilities decreased $12.4 million, or 5.0%,
from $246.3 million at June 30, 2012 to $233.9 million at March 31,
2013, primarily due to a decrease in total deposits of $18.4
million, or 8.3%, to $203.1 million at March 31, 2013, compared to
$221.4 million at June 30, 2012. The decrease in deposits was
primarily due to the withdrawal during the quarter of the
non-recurring deposit discussed above which had a balance of
approximately $31.7 million at June 30, 2012. During the latter
part of fiscal 2012, the Company began utilizing brokered
certificates of deposit as a component of its strategy for lowering
Home Federal Bank's overall cost of funds. The Company has accepted
$2.3 million in new brokered certificates of deposit in fiscal
2013. The brokered certificates of deposit which have maturity
dates greater than twelve months are callable by Home Federal Bank
after twelve months pursuant to early redemption provisions. At
March 31, 2013 and June 30, 2012, the Company had $12.7 million and
$10.4 million, respectively, in brokered deposits. Advances from
the Federal Home Loan Bank of Dallas increased $6.3 million, or
26.7%, to $29.7 million at March 31, 2013, from $23.5 million at
June 30, 2012.
At March 31, 2013, the Company had $769,000 of
non-performing assets compared to $14,000 of non-performing assets
at June 30, 2012, consisting of four single-family residential
loans and one non-performing line of credit at March 31, 2013,
compared to one non-performing single family residential loan at
June 30, 2012. The Company had four commercial loans and one
residential mortgage loan classified substandard at March 31,
2013 in the amount of $5.0 million compared to none at June 30,
2012. The loans are performing in accordance with their terms at
March 31, 2013.
Shareholders' equity decreased $7.6 million, or 15.2%, to
$42.3 million at March 31, 2013, from $49.9 million at June 30,
2012. The primary reasons for the decrease in shareholders'
equity from June 30, 2012, were the acquisition of treasury stock
of $10.2 million, dividends paid of $492,000 and a decrease in the
Company's accumulated other comprehensive income of $600,000. These
decreases in shareholders' equity were partially offset by net
income of $2.5 million for the nine months ended March 31, 2013,
proceeds from the issuance of common stock from the exercise of
stock options of $742,000 and the vesting of restricted stock
awards, stock options and release of employee stock ownership plan
shares totaling $525,000.
The Company repurchased 206,891 shares of its common stock
during the quarter ended March 31, 2013 at an average price per
share of $17.74. Of the repurchased shares, 19,391 shares were
acquired under the stock repurchase programs. As of March 31, 2013,
there were a total of 134,345 shares remaining for repurchase under
the programs.
Home Federal Bancorp, Inc. of Louisiana is the
holding company for Home Federal Bank which conducts business from
its four full-service banking offices and one agency in northwest
Louisiana.
Statements contained in this news release which are not
historical facts may be forward-looking statements as that term is
defined in the Private Securities Litigation Reform Act of
1995. Forward-looking statements can be identified by the fact
that they do not relate strictly to historical or current
facts. They often include words like "believe," "expect,"
"anticipate," "estimate" and "intend" or future or conditional
verbs such as "will," "would," "should," "could" or "may." We
undertake no obligation to update any forward-looking
statements.
|
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF FINANCIAL CONDITION |
(In thousands) |
|
March 31, |
June 30, |
|
2013 |
2012 |
ASSETS |
(Unaudited) |
|
|
|
Cash and cash equivalents |
$ 7,024 |
$ 34,863 |
Securities available for sale at fair
value |
53,313 |
68,426 |
Securities held to maturity (fair value March
31, 2013: $1,920; June 30, 2012: $1,381) |
1,920 |
1,381 |
Loans held-for-sale |
4,173 |
11,157 |
Loans receivable, net of allowance for loan
losses (March 31, 2013: $2,124; June 30, 2012: $1,698) |
196,419 |
168,263 |
Other assets |
13,376 |
12,093 |
|
|
|
Total assets |
$ 276,225 |
$ 296,183 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Deposits |
$ 203,069 |
$ 221,436 |
Advances from the Federal Home Loan Bank of
Dallas |
29,745 |
23,469 |
Other liabilities |
1,097 |
1,390 |
|
|
|
Total liabilities |
233,911 |
246,295 |
|
|
|
Shareholders' equity |
42,314 |
49,888 |
|
|
|
Total liabilities and
shareholders' equity |
$ 276,225 |
$ 296,183 |
|
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(In thousands, except per share
data) |
|
|
Three Months
Ended |
Nine Months
Ended |
|
March
31, |
March
31, |
|
2013 |
2012 |
2013 |
2012 |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Interest income |
|
|
|
|
Loans, including fees |
$ 2,880 |
$ 2,624 |
$ 8,564 |
$ 7,394 |
Investment securities |
5 |
8 |
20 |
88 |
Mortgage-backed securities |
383 |
635 |
1,314 |
1,877 |
Other interest-earning
assets |
2 |
3 |
10 |
11 |
Total interest income |
3,270 |
3,270 |
9,908 |
9,370 |
Interest expense |
|
|
|
|
Deposits |
543 |
609 |
1,693 |
1,859 |
Federal Home Loan Bank
borrowings |
76 |
137 |
263 |
474 |
Other bank borrowings |
1 |
-- |
4 |
-- |
Total interest expense |
620 |
746 |
1,960 |
2,333 |
Net interest income |
2,650 |
2,524 |
7,948 |
7,037 |
Provision for loan losses |
214 |
216 |
441 |
490 |
Net interest income after
provision for loan losses |
2,436 |
2,308 |
7,507 |
6,547 |
|
|
|
|
|
Non-interest income |
|
|
|
|
Gain on sale of loans |
655 |
674 |
1,992 |
1,764 |
Gain on sale of securities |
-- |
-- |
215 |
254 |
Income on Bank Owned Life
Insurance |
44 |
50 |
141 |
158 |
Other income |
71 |
102 |
273 |
295 |
|
|
|
|
|
Total non-interest income |
770 |
826 |
2,621 |
2,471 |
|
|
|
|
|
Non-interest expense |
|
|
|
|
Compensation and benefits |
1,403 |
1,432 |
4,068 |
3,758 |
Occupancy and equipment |
148 |
190 |
540 |
559 |
Data processing |
126 |
80 |
313 |
246 |
Audit and examination fees |
52 |
103 |
158 |
218 |
Franchise and bank shares
tax |
84 |
87 |
224 |
230 |
Advertising |
61 |
70 |
181 |
207 |
Legal fees |
151 |
113 |
398 |
316 |
Loan and collection |
25 |
60 |
87 |
117 |
Deposit insurance premium |
32 |
30 |
95 |
83 |
Other expenses |
125 |
123 |
338 |
360 |
|
|
|
|
|
Total non-interest expense |
2,207 |
2,288 |
6,402 |
6,094 |
|
|
|
|
|
Income before income taxes |
999 |
846 |
3,726 |
2,924 |
Provision for income tax expense |
323 |
259 |
1,231 |
855 |
|
|
|
|
|
NET INCOME |
$ 676 |
$ 587 |
$ 2,495 |
$ 2,069 |
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
Basic |
$ 0.31 |
$ 0.21 |
$ 1.04 |
$ 0.73 |
Diluted |
$ 0.30 |
$ 0.21 |
$ 1.01 |
$ 0.73 |
|
|
|
|
|
|
|
Three Months
Ended |
Nine Months
Ended |
|
March
31, |
March
31, |
|
2013 |
2012 |
2013 |
2012 |
|
(Unaudited) |
(Unaudited) |
Selected Operating
Ratios(1): |
|
|
|
|
Average interest rate
spread |
3.80% |
3.75% |
3.80% |
3.57% |
Net interest margin |
4.03% |
4.11% |
4.08% |
3.97% |
Return on average
assets |
0.97% |
0.90% |
1.21% |
1.10% |
Return on average
equity |
6.33% |
4.61% |
7.20% |
5.43% |
|
|
|
|
|
Asset Quality
Ratios(2): |
|
|
|
|
Non-performing assets as
a percent of total assets |
0.28% |
0.04% |
0.28% |
0.04% |
Allowance for loan losses
as a percent of non-performing loans |
276.29% |
135.92% |
276.29% |
135.92% |
Allowance for loan losses
as a percent of total loans receivable |
1.07% |
0.86% |
1.07% |
0.86% |
|
|
|
|
|
Per Share Data: |
|
|
|
|
Shares outstanding at
period end |
2,361,879 |
2,969,372 |
2,361,879 |
2,969,372 |
Weighted average shares
outstanding: |
|
|
|
|
Basic |
2,180,265 |
2,792,791 |
2,399,921 |
2,838,868 |
Diluted |
2,246,667 |
2,819,262 |
2,467,577 |
2,850,878 |
Tangible book value
at period end |
$ 17.92 |
$ 16.97 |
$ 17.92 |
$ 16.97 |
|
|
|
|
|
(1) Ratios for the three and nine month
periods are annualized. |
|
|
|
|
(2) Asset quality ratios are end of
period ratios. |
|
|
|
|
CONTACT: Daniel R. Herndon
Chief Executive Officer
James R. Barlow
President and Chief Operating Officer
(318) 222-1145
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