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 September 30, 2013 of
$713,000, a decrease of $226,000 compared to net income of $939,000
reported for the three months ended September 30, 2012. The
Company's basic and diluted earnings per share were $0.34 and
$0.33, respectively, for the quarter ended September 30, 2013,
compared to basic and diluted earnings per share of $0.36 and
$0.35, respectively, for the quarter ended September 30, 2012.
The decrease in net income for the three months ended September
30, 2013, resulted primarily from a decrease of $327,000, or 35.1%,
in non-interest income and a $121,000, or 5.9%, increase in
non-interest expense, partially offset by a $54,000, or 2.0%,
increase in net interest income, a $45,000, or 40.5%, decrease in
the provision for loan losses, and a $123,000, or 26.3%, decrease
in income tax expense. The increase in net interest income for the
three months ended September 30, 2013, was primarily due to a
decrease of $63,000, or 9.1%, in aggregate interest expense on
borrowings and deposits primarily due to an overall decrease in
rates paid on interest-bearing liabilities, partially offset by a
$9,000, or 0.3%, decrease in total interest income. The Company's
average interest rate spread was 3.65% for the three months ended
September 30, 2013, compared to 3.77% for the three months ended
September 30, 2012. The Company's net interest margin was 3.91% for
the three months ended September 30, 2013, compared to 4.08% for
the quarter ended September 30, 2012. The decrease in the average
interest rate spread and net interest margin on a comparative
quarterly basis was primarily the result of a higher average volume
of interest earning assets and a decrease of 33 basis points in
average yield on interest-earning assets for the quarter ended
September 30, 2013 compared to the prior year quarterly period.
The following table sets forth the Company's average balances
and average yields earned and rates paid on its interest-earning
assets and interest-bearing liabilities for the periods
indicated.
|
For the Three
Months Ended September 30, |
|
2013 |
2012 |
|
Average
Balance |
Average
Yield/Rate |
Average
Balance |
Average
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Loans receivable |
$215,741 |
5.65% |
$184,628 |
6.16% |
Investment securities |
55,312 |
2.00 |
65,744 |
3.00 |
Interest-earning deposits |
5,314 |
0.31 |
9,097 |
0.27 |
Total interest-earning assets |
$276,367 |
4.82% |
$259,469 |
5.15% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
10,001 |
0.24 |
$ 6,793 |
0.28% |
NOW accounts |
25,535 |
1.06 |
18,432 |
0.79 |
Money market accounts |
44,026 |
0.41 |
44,824 |
0.50 |
Certificates of deposit |
113,641 |
1.61 |
107,542 |
1.84 |
Total interest-bearing deposits |
193,203 |
1.19 |
177,591 |
1.34 |
Other Bank Borrowings |
733 |
4.01 |
-- |
-- |
FHLB advances |
21,864 |
0.88 |
23,167 |
1.73 |
Total interest-bearing liabilities |
$215,800 |
1.17% |
$200,758 |
1.38% |
The $327,000 decrease in non-interest income for the quarter
ended September 30, 2013, compared to the prior year quarterly
period was due to decreases of $206,000 in gain on sale of loans,
$95,000 in gain on sale of securities and $21,000 in other
non-interest income. The Company sells most of its fixed rate
mortgage loan originations other than those loans selected for
portfolio. The $121,000 increase in non-interest expense for
the quarter ended September 30, 2013 compared to 2012 was primarily
due to increases of $66,000 in compensation and benefits, $28,000
in data processing, $17,000 in other non-interest expense, $9,000
in audit and examination fees and $9,000 franchise and bank shares
taxes, partially offset by decreases of $11,000 in occupancy and
equipment expense and $8,000 in loan and collection expense. The
increase in compensation and benefits expense during the quarter
was due to the hiring of two mortgage loan originators.
At September 30, 2013, the Company reported total assets of
$292.7 million, an increase of $15.5 million, or 5.6%, compared to
total assets of $277.2 million at June 30, 2013. The increase in
assets was comprised primarily of increases in investment
securities of $5.1 million, or 10.4%, from $49.4 million at June
30, 2013, to $54.5 million at September 30, 2013, loans
held-for-sale of $2.5 million, or 72.5%, from $3.5 million at June
30, 2013, to $6.0 million at September 30, 2013, and an increase in
cash and cash equivalents of $6.6 million, or 178.8%, from $3.7
million at June 30, 2013 to $10.3 million at September 30, 2013.
The increase in investment securities was primarily due to the
acquisition of mortgage backed securities in the amount of $8.8
million, partially offset by principal payments on securities of
$3.4 million. The increase in loans held-for-sale results primarily
from an increase at September 30, 2013 in receivables from
financial institutions purchasing the Company's loans held-for-sale
and an increase in the origination volume during the first quarter
of fiscal 2014.
The following table shows total loans originated and sold during
the periods indicated.
|
Quarter
Ended September 30, |
|
|
2013 |
2012 |
% Change |
|
(In thousands) |
|
Loan originations: |
|
|
|
One- to four-family residential |
$ 35,691 |
$ 46,430 |
(23.1)% |
Commercial — real estate secured
(owner occupied and non-owner occupied) |
4,096 |
2,681 |
52.8% |
Multi-family residential |
-- |
-- |
--% |
Commercial business |
6,841 |
571 |
1,098.1% |
Land |
2,422 |
1,308 |
85.2% |
Construction |
5,569 |
9,522 |
(41.5)% |
Home equity loans and lines of credit and
other consumer |
16 |
101 |
(84.2)% |
Total loan originations |
$ 54,635 |
$ 60,613 |
(9.9)% |
Loans sold |
$(17,866) |
$(39,915) |
(55.2)% |
Total liabilities increased $15.4 million, or 6.5%, from $235.2
million at June 30, 2013, to $250.5 million at September 30, 2013,
primarily due to an increase in total deposits of $20.6 million, or
9.7%, to $232.5 million at September 30, 2013, compared to $211.9
million at June 30, 2013. At both September 30, 2013 and June 30,
2013, the Company had $12.7 million in brokered deposits. The
Company utilizes brokered certificates of deposit as a component of
its strategy for lowering Home Federal Bank's overall cost of
funds. 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.
Advances from the Federal Home Loan Bank of Dallas decreased $6.1
million, or 28.3%, to $15.5 million at September 30, 2013, from
$21.7 million at June 30, 2013.
At September 30, 2013, the Company had $527,000 of
non-performing assets compared to $649,000 of non-performing assets
at June 30, 2013, consisting of three single-family residential
loans, one commercial automobile loan and one non-performing line
of credit at September 30, 2013, compared to four single-family
residential loans and one non-performing line of credit at June 30,
2013. At September 30, 2013 and June 30, 2013, the Company had
three commercial loans and one residential mortgage loan classified
as substandard in the aggregate amount of $4.9 million and $5.3
million, respectively. The Company had one line of credit and one
commercial non-real estate loan classified as doubtful in the
aggregate amount of $38,000 at September 30, 2013, compared to one
line of credit classified as doubtful in the amount of $27,000 at
June 30, 2013.
Shareholders' equity increased $183,000, or 0.4%, to $42.2
million at September 30, 2013, from $42.0 million at June 30,
2013. The primary reasons for the increase in shareholders'
equity from June 30, 2013, were net income of $713,000, proceeds
from the issuance of common stock from the exercise of stock
options of $245,000, and the vesting of restricted stock awards,
stock options and release of employee stock ownership plan shares
totaling $101,000. These increases in shareholders' equity were
partially offset by dividends paid of $141,000, acquisition of
treasury stock of $473,000, and a decrease in the company's
accumulated other comprehensive income of $262,000.
The Company repurchased 16,342 shares of its common stock
under its stock repurchase programs during the quarter ended
September 30, 2013 at an average price per share of $17.39.
As of September 30, 2013, there were a total of 107,265
shares remaining for repurchase under the program.
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) |
|
September 30,
2013 |
June 30, 2013 |
ASSETS |
(Unaudited) |
|
|
|
Cash and cash equivalents |
$ 10,275 |
$ 3,685 |
Securities available for sale at fair
value |
52,943 |
47,961 |
Securities held to maturity (fair value
September 30, 2013: $1,599; June 30, 2013: $1,465) |
1,599 |
1,465 |
Loans held-for-sale |
5,976 |
3,464 |
Loans receivable, net of allowance for loan
losses (September 30, 2013: $2,306; June 30, 2013:
$2,240) |
206,864 |
206,079 |
Other assets |
15,031 |
14,501 |
|
|
|
Total assets |
$292,688 |
$277,155 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Deposits |
$232,525 |
$211,922 |
Advances from the Federal Home Loan Bank of
Dallas |
15,533 |
21,662 |
Other borrowings |
800 |
-- |
Other liabilities |
1,665 |
1,589 |
|
|
|
Total liabilities |
250,523 |
235,173 |
|
|
|
Shareholders' equity |
42,165 |
41,982 |
|
|
|
Total liabilities and shareholders'
equity |
$292,688 |
$277,155 |
|
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(In thousands, except per share
data) |
|
|
|
Three Months
Ended September 30, |
|
2013 |
2012 |
|
(Unaudited) |
|
|
|
Interest income |
|
|
Loans, including fees |
$3,050 |
$2,841 |
Mortgage-backed
securities |
276 |
485 |
Other interest-earning
assets |
5 |
14 |
Total interest income |
3,331 |
3,340 |
Interest expense |
|
|
Deposits |
575 |
593 |
Federal Home Loan Bank
borrowings |
48 |
100 |
Other bank borrowings |
7 |
-- |
Total interest expense |
630 |
693 |
Net interest income |
2,701 |
2,647 |
|
|
|
Provision for loan losses |
66 |
111 |
Net interest income after
provision for loan
losses |
2,635 |
2,536 |
|
|
|
Non-interest income |
|
|
Gain on sale of loans |
476 |
682 |
Gain on sale of
securities |
-- |
95 |
Income on Bank Owned Life
Insurance |
44 |
49 |
Other income |
84 |
105 |
|
|
|
Total non-interest
income |
604 |
931 |
|
|
|
Non-interest expense |
|
|
Compensation and
benefits |
1,384 |
1,318 |
Occupancy and equipment |
195 |
206 |
Franchise and bank shares
tax |
93 |
84 |
Advertising |
64 |
60 |
Data processing |
115 |
87 |
Audit and examination
fees |
57 |
48 |
Legal fees |
93 |
88 |
Loan and collection |
32 |
40 |
Deposit insurance
premium |
33 |
31 |
Other expenses |
116 |
99 |
|
|
|
|
Total non-interest expense |
2,182 |
2,061 |
|
|
|
|
|
Income before income taxes |
1,057 |
1,406 |
|
Provision for income tax expense |
344 |
467 |
|
|
|
|
|
NET INCOME |
$ 713 |
$ 939 |
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
Basic |
$0.34 |
$0.36 |
|
Diluted |
$0.33 |
$0.35 |
|
|
|
|
|
Three Months
Ended September 30, |
|
2013 |
2012 |
|
(Unaudited) |
Selected Operating
Ratios(1): |
|
|
Average interest rate spread |
3.65% |
3.77% |
Net interest margin |
3.91% |
4.08% |
Return on average assets |
1.00% |
1.37% |
Return on average equity |
6.45% |
7.64% |
|
|
|
Asset Quality
Ratios(2): |
|
|
Non-performing assets as a percent of
total assets |
0.18% |
*% |
Allowance for loan losses as a percent of
non-performing loans |
437.57% |
*% |
Allowance for loan losses as a percent of
total loans receivable |
1.10% |
1.02% |
|
|
|
Per Share Data: |
|
|
Shares outstanding at period end |
2,347,334 |
2,778,019 |
Weighted average shares outstanding: |
|
|
Basic |
2,112,679 |
2,594,088 |
Diluted |
2,166,030 |
2,661,334 |
Tangible book value at period end |
$17.96 |
$17.59 |
__________________ |
(1) Ratios for the three and twelve
month periods are annualized. |
(2) Asset quality ratios are end of
period ratios. |
* Not meaningful |
CONTACT: James R. Barlow
President and Chief Operating Officer
(318) 222-1145
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