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 December 31, 2013 of
$645,000, a decrease of $236,000 compared to net income of $881,000
reported for the three months ended December 31, 2012. The
Company's basic and diluted earnings per share were $0.31 and
$0.30, respectively, for the quarter ended December 31, 2013,
compared to basic and diluted earnings per share of $0.36 and
$0.35, respectively, for the quarter ended December 31, 2012.
The Company reported net income of $1.4 million for the six
months ended December 31, 2013, a decrease of $461,000 compared to
$1.8 million for the six months ended December 31, 2012. The
Company's basic and diluted earnings per share were $0.64 and
$0.63, respectively, for the six months ended December 31, 2013,
compared to $0.73 and $0.71, respectively, for the six months ended
December 31, 2012.
The decrease in net income for the three months ended December
31, 2013, resulted primarily from a decrease of $350,000, or 38.1%,
in non-interest income, a $91,000, or 4.3%, increase in
non-interest expense and a $20,000, or 0.8%, decrease in net
interest income, partially offset by a $94,000, or 81.0%, decrease
in the provision for loan losses, and a $131,000, or 29.8%,
decrease in income tax expense. The decrease in net interest income
for the three months ended December 31, 2013, was primarily due to
a $64,000, or 1.9%, decrease in total interest income, partially
offset by a decrease of $44,000, or 6.8%, in aggregate interest
expense on borrowings and deposits primarily due to an overall
decrease in rates paid on interest-bearing liabilities. The
Company's average interest rate spread was 3.66% for the three
months ended December 31, 2013, compared to 3.84% for the three
months ended December 31, 2012. The Company's net interest margin
was 3.91% for the three months ended December 31, 2013, compared to
4.13% for the quarter ended December 31, 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 December 31, 2013 compared to the prior year
quarterly period.
The decrease in net income for the six months ended December 31,
2013, resulted primarily from a $679,000, or 36.7%, decrease in
non-interest income, and an increase of $212,000, or 5.1%, in
non-interest expense partially offset by a $36,000, or 0.7%,
increase in net interest income, a $139,000, or 61.2% decrease in
the provision for loan losses, and a $255,000, or 28.1%, decrease
in income tax expense. The increase in net interest income for the
six month period was primarily due to a $107,000, or 8.0% decrease
in interest expense on borrowings and deposits due to an overall
decline in the average cost of funds partially offset by a $71,000,
or 1.1%, decrease in total interest income. The Company's average
interest rate spread was 3.66% for the six months ended December
31, 2013, compared to 3.80% for the six months ended December 31,
2012. The Company's net interest margin was 3.91% for the six
months ended December 31, 2013, compared to 4.10% for the six
months ended December 31, 2012. The decrease in net interest margin
and average interest rate spread is attributable primarily to a
lower average yield on interest earning assets.
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 December 31, |
|
2013 |
2012 |
|
Average |
Average |
Average |
Average |
|
Balance |
Yield/Rate |
Balance |
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Investment Securities |
$45,919 |
2.36% |
$60,208 |
3.02% |
Loans Receivable |
216,626 |
5.47 |
194,620 |
5.84 |
Interest-earning deposits |
6,963 |
0.20 |
2,303 |
0.32 |
Total interest-earning
assets |
$269,508 |
4.80% |
$257,131 |
5.13% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
10,949 |
0.20% |
$6,679 |
0.29% |
NOW accounts |
26,858 |
1.03 |
18,950 |
0.83 |
Money market accounts |
41,597 |
0.33 |
37,732 |
0.43 |
Certificates of deposit |
114,461 |
1.56 |
107,090 |
1.77 |
Total interest-bearing
deposits |
193,865 |
1.15 |
170,451 |
1.31 |
Other bank borrowings |
267 |
5.18 |
-- |
-- |
FHLB advances |
17,958 |
0.89 |
29,584 |
1.22 |
Total interest-bearing
liabilities |
$212,090 |
1.14% |
$200,035 |
1.29% |
|
|
|
|
|
|
For the Six
Months Ended December 31, |
|
2013 |
2012 |
|
Average |
Average |
Average |
Average |
|
Balance |
Yield/Rate |
Balance |
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Investment securities |
$50,616 |
2.17% |
$ 62,976 |
3.01% |
Loans receivable |
216,183 |
5.56 |
189,624 |
6.00 |
Interest-earning deposits |
6,138 |
0.25 |
5,701 |
0.28 |
Total interest-earning
assets |
$272,937 |
4.81% |
$ 258,301 |
5.14% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
$ 10,475 |
0.22% |
$ 6,736 |
0.28% |
NOW accounts |
26,197 |
1.04 |
18,691 |
0.81 |
Money market accounts |
42,811 |
0.37 |
41,278 |
0.47 |
Certificates of deposit |
114,051 |
1.58 |
107,316 |
1.81 |
Total interest-bearing
deposits |
193,534 |
1.17 |
174,021 |
1.32 |
Other bank borrowings |
500 |
5.71 |
-- |
-- |
FHLB advances |
19,911 |
0.89 |
26,375 |
1.45 |
Total interest-bearing
liabilities |
$ 213,945 |
1.15% |
$ 200,396 |
1.34% |
The $350,000 decrease in non-interest income for the quarter
ended December 31, 2013, compared to the prior year quarterly
period was due to decreases of $250,000 in gain on sale of loans
held for sale, $86,000 in gain on sale of securities and $10,000 in
other non-interest income. The $679,000 decrease in non-interest
income for the six months ended December 31, 2013, compared to the
prior year period was primarily due to decreases of $456,000 in
gain on sale of loans held for sale, $33,000 in other non-interest
income, and $181,000, in gain on sale of securities. The Company
sells most of its fixed rate mortgage loan originations other than
those loans selected for portfolio. The $91,000 increase in
non-interest expense for the quarter ended December 31, 2013,
compared to the same period in 2012, is primarily attributable to
increases of $49,000 in occupancy and equipment expense, $28,000 in
franchise and bank shares taxes, $11,000 in loan and collection
expense, $9,000 in advertising and $28,000 in other non-interest
expenses. These increases were partially offset by decreases of
$15,000 in legal fees, $13,000 in data processing and $8,000 in
audit and examination fees.
The $212,000 increase in non-interest expense for the six months
ended December 31, 2013, compared to the same period in 2012, is
primarily attributable to increases of $66,000 in compensation and
benefits expense, $38,000 in occupancy and equipment expense,
$37,000 in franchise and bank shares taxes, $14,000 in data
processing, $13,000 in advertising and $45,000 in other
non-interest expenses. These increases were partially offset by a
decrease of $9,000 in legal fees.
At December 31, 2013, the Company reported total assets of
$285.8 million, an increase of $8.7 million, or 3.1%, compared to
total assets of $277.2 million at June 30, 2013. The increase in
assets was comprised primarily of increases in loans receivable,
net of $5.9 million, or 2.9%, from $206.1 million at June 30, 2013,
to $212.0 million at December 31, 2013, loans held-for-sale of $2.1
million, or 61.7%, from $3.5 million at June 30, 2013, to $5.6
million at December 31, 2013, cash and cash equivalents of $3.2
million, or 86.7%, from $3.7 million at June 30, 2013 to $6.9
million at December 31, 2013, and an increase in other assets of
$1.9 million, or 12.8%, from $14.5 million at June 30, 2013 to
$16.4 million at December 31, 2013. These increases were partially
offset by a decrease in investment securities of $4.5 million, or
9.0%, from $49.4 million at June 30, 2013, to $45.0 million at
December 31, 2013. The increase in loans held-for-sale results
primarily from an increase at December 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.
|
Six Months
Ended |
|
|
December 31, |
|
|
2013 |
2012 |
% Change |
|
(In thousands) |
|
Loan originations: |
|
|
|
One- to four-family
residential |
$ 67,400 |
$ 93,841 |
(28.2)% |
Commercial — real estate
secured (owner occupied and non-owner occupied) |
6,052 |
8,766 |
(31.0)% |
Multi-family residential |
-- |
6,484 |
(100.0)% |
Commercial business |
18,944 |
3,145 |
502.4% |
Land |
2,964 |
2,603 |
13.9% |
Construction |
13,811 |
16,539 |
(16.5)% |
Home equity loans and lines of
credit and other consumer |
168 |
1,960 |
(91.4)% |
Total loan originations |
$ 109,339 |
$ 133,338 |
(18.0)% |
Loans sold |
$ (33,041) |
$ (64,311) |
(48.6)% |
Included in the $13.8 million and $16.5 million of
construction loan originations for the six months ended December
31, 2013 and 2012, respectively, are approximately $9.1 million and
$14.5 million, respectively, of one- to four-family residential
construction loans and $4.7 million and $2.0 million, respectively,
of commercial and multi-family construction loans, all of which are
primarily located in the Company's market area.
Total liabilities increased $9.3 million, or 4.0%,
from $235.2 million at June 30, 2013, to $244.5 million at December
31, 2013, primarily due to an increase in total deposits of $13.4
million, or 6.3%, to $225.3 million at December 31, 2013, compared
to $211.9 million at June 30, 2013. At both December 31, 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 $3.2 million, or 14.8%, to $18.5 million at December 31,
2013, from $21.7 million at June 30, 2013.
At December 31, 2013, the Company had $565,000 of
non-performing assets compared to $649,000 of non-performing assets
at June 30, 2013, consisting of four single-family residential
loans, and one non-performing line of credit for both periods. At
December 31, 2013, the Company had two residential mortgage loans
classified as substandard in the aggregate amount of $403,000
compared to three commercial loans and one residential mortgage
loan in the aggregate amount of $5.3 million at June 30, 2013. The
Company had one line of credit classified as doubtful in the amount
of $27,000 at both December 31, 2013 and June 30, 2013.
Shareholders' equity decreased $662,000, or 1.6%, to $41.3
million at December 31, 2013, from $42.0 million at June 30,
2013. The primary reasons for the decreases in shareholders'
equity from June 30, 2013, were dividends paid of $281,000,
acquisition of treasury stock of $2.2 million, and a decrease in
the Company's accumulated other comprehensive income of $8,000.
These decreases in shareholders' equity were partially offset by
net income of $1.4 million, proceeds from the issuance of common
stock from the exercise of stock options of $250,000, and the
vesting of restricted stock awards, stock options and release of
employee stock ownership plan shares totaling $190,000.
The Company repurchased 97,810 shares of its common stock
under its stock repurchase programs during the quarter ended
December 31, 2013 at an average price per share of $17.36. As
of December 31, 2013, there were a total of 9,455 shares remaining
for repurchase under the program. On January 8, 2014, the Company
announced that its Board of Directors approved a fourth stock
repurchase program for the repurchase of up to an additional
115,000 shares.
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) |
|
December 31,
2013 |
June 30, 2013 |
ASSETS |
(Unaudited) |
|
|
|
Cash and cash equivalents |
$6,881 |
$ 3,685 |
Securities available for sale at fair
value |
43,702 |
47,961 |
Securities held to maturity (fair value
December 31, 2013: $1,259 June 30, 2013: $1,465) |
1,259 |
1,465 |
Loans held-for-sale |
5,600 |
3,464 |
Loans receivable, net of allowance for loan
losses (December 31, 2013: $2,316; June 30, 2013: $2,240) |
212,013 |
206,079 |
Other assets |
16,353 |
14,501 |
|
|
|
Total assets |
$ 285,808 |
$277,155 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Deposits |
$ 225,340 |
$211,922 |
Advances from the Federal Home Loan Bank of
Dallas |
18,457 |
21,662 |
Other liabilities |
691 |
1,589 |
|
|
|
Total liabilities |
244,488 |
235,173 |
|
|
|
Shareholders' equity |
41,320 |
41,982 |
|
|
|
Total liabilities and
shareholders' equity |
$ 285,808 |
$277,155 |
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(In thousands, except per share
data) |
|
|
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
December
31, |
December
31, |
|
2013 |
2012 |
2013 |
2012 |
|
(Unaudited) |
|
|
|
|
|
Interest income |
|
|
|
|
Loans, including fees |
$ 2,961 |
$ 2,843 |
$ 6,011 |
$ 5,684 |
Investment securities |
1 |
7 |
3 |
14 |
Mortgage-backed securities |
270 |
447 |
545 |
932 |
Other interest-earning
assets |
3 |
2 |
8 |
8 |
Total interest income |
3,235 |
3,299 |
6,567 |
6,638 |
Interest expense |
|
|
|
|
Deposits |
556 |
557 |
1,131 |
1,150 |
Federal Home Loan Bank
borrowings |
40 |
87 |
88 |
187 |
Other bank borrowings |
7 |
3 |
14 |
3 |
Total interest expense |
603 |
647 |
1,233 |
1,340 |
Net interest income |
2,632 |
2,652 |
5,334 |
5,298 |
|
|
|
|
|
Provision for loan losses |
22 |
116 |
88 |
227 |
Net interest income after
provision for loan losses |
2,610 |
2,536 |
5,246 |
5,071 |
|
|
|
|
|
Non-interest income |
|
|
|
|
Gain on sale of loans |
404 |
654 |
880 |
1,336 |
Gain on sale of securities |
34 |
120 |
34 |
215 |
Income on Bank Owned Life
Insurance |
44 |
48 |
88 |
97 |
Other income |
87 |
97 |
170 |
203 |
|
|
|
|
|
Total non-interest income |
569 |
919 |
1,172 |
1,851 |
|
|
|
|
|
Non-interest expense |
|
|
|
|
Compensation and benefits |
1,346 |
1,347 |
2,730 |
2,664 |
Occupancy and equipment |
236 |
187 |
431 |
393 |
Data Processing |
86 |
99 |
201 |
187 |
Audit and Examination Fees |
50 |
58 |
106 |
106 |
Franchise and Bank Shares
Tax |
85 |
57 |
178 |
141 |
Advertising |
69 |
60 |
133 |
120 |
Legal fees |
144 |
159 |
238 |
247 |
Loan and collection |
32 |
21 |
64 |
61 |
Deposit insurance premium |
35 |
32 |
68 |
63 |
Other expenses |
142 |
114 |
258 |
213 |
|
|
|
|
|
Total non-interest expense |
2,225 |
2,134 |
4,407 |
4,195 |
|
|
|
|
|
Income before income taxes |
954 |
1,321 |
2,011 |
2,727 |
Provision for income tax expense |
309 |
440 |
653 |
908 |
|
|
|
|
|
NET INCOME |
$ 645 |
$881 |
$ 1,358 |
$ 1,819 |
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
Basic |
$ 0.31 |
$0.36 |
$ 0.64 |
$ 0.73 |
Diluted |
$ 0.30 |
$0.35 |
$ 0.63 |
$ 0.71 |
|
|
|
|
Three Months
Ended |
Six Months
Ended |
|
December
31, |
December
31, |
|
2013 |
2012 |
2013 |
2012 |
|
(Unaudited) |
|
|
Selected Operating
Ratios(1): |
|
|
|
|
Average interest rate
spread |
3.66% |
3.84% |
3.66% |
3.80% |
Net interest margin |
3.91% |
4.13% |
3.91% |
4.10% |
Return on average assets |
0.89% |
1.29% |
0.93% |
1.33% |
Return on average equity |
5.89% |
7.52% |
6.17% |
7.58% |
|
|
|
|
|
Asset Quality
Ratios(2): |
|
|
|
|
Non-performing assets as a
percent of total assets |
0.19% |
0.14% |
0.19% |
0.14% |
Allowance for loan losses as a
percent of non-performing loans |
409.91% |
509.26% |
409.91% |
509.26% |
Allowance for loan losses as a
percent of total loans receivable |
1.08% |
1.03% |
1.08% |
1.03% |
|
|
|
|
|
Per Share Data: |
|
|
|
|
Shares outstanding at period
end |
2,249,962 |
2,556,829 |
2,249,962 |
2,556,829 |
Weighted average shares
outstanding: |
|
|
|
|
Basic |
2,098,976 |
2,420,591 |
2,105,826 |
2,507,336 |
Diluted |
2,143,026 |
2,488,430 |
2,154,337 |
2,575,130 |
Tangible book value at period
end |
$18.36 |
$17.70 |
$18.36 |
$17.70 |
____________ |
|
|
|
(1) Ratios for the three and six
month periods are annualized. |
(2) Asset quality ratios are end
of period ratios. |
CONTACT: James R. Barlow
President and Chief Operating Officer
(318) 222-1145
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