ITEM 2.
|
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
General
The Company’s results of operations are primarily dependent on the results of the Bank, which became a wholly owned subsidiary upon
completion of the second-step conversion and reorganization of the Bank on December 22, 2010. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and
investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for loan losses and loan sale activities. Non-interest expense principally consists of
compensation and employee benefits, office occupancy and equipment expense, data processing, and other expenses. Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in
interest rates, government policies, and actions of regulatory authorities. Future changes in applicable law, regulations, or government policies may materially impact our financial conditions and results of operations.
Home Federal Bank operates from its main office and an administrative office in Shreveport, Louisiana and five full service branch offices
located in Shreveport and Bossier City, Louisiana. The Company’s primary market area is the Shreveport-Bossier City metropolitan area. The Company offers security brokerage and advisory services through a third party provider at its agency
office, which also serves as the office for the commercial lending division and as a loan production office.
Critical Accounting Policies
Allowance for Loan Losses.
The
Company has identified the calculation of the allowance for loan losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies. Provisions for loan losses are based upon
management’s periodic valuation and assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions, and other relevant factors in order to maintain the allowance for loan losses
at a level believed by management to represent all known and inherent losses in the portfolio that are both probable and reasonably estimable. Although management uses the best information available, the level of the allowance for loan losses
remains an estimate which is subject to significant judgment and short-term change.
Income Taxes.
Deferred income tax
assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of
the various assets and liabilities and gives current recognition to changes in tax rates and laws. The realization of our deferred tax assets principally depends upon our achieving projected future taxable income. We may change our judgments
regarding future profitability due to future market conditions and other factors. We may adjust our deferred tax asset balances, if our judgments change.
Discussion of Financial Condition Changes from June 30, 2018 to December 31, 2018
General
At December 31, 2018, the Company reported total assets of $425.5 million, an increase of $3.9 million, or 0.9%, compared to total assets of
$421.6 million at June 30, 2018. The increase in assets was comprised primarily of increases in investment securities of $6.9 million, or 11.9%, from $58.2 million at June 30, 2018 to $65.1 million at December 31, 2018, loans receivable, net, of
$4.6 million, or 1.4%, from $317.5 million at June 30, 2018 to $322.1 million at December 31, 2018, premises and equipment of $917,000, or 7.5%, from $12.2 million at June 30, 2018 to $13.2 million at December 31, 2018, bank owned life insurance of
$70,000, or 1.0%, from $6.8 million at June 30, 2018 to $6.9 million at December 31, 2018, and accrued interest receivable of $18,000, or 1.6%, from $1.1 million at June 30, 2018 to $1.2 million at December 31, 2018. These increases were partially
offset by decreases in cash and cash equivalents of $5.0 million, or 31.5%, from $15.9 million at June 30, 2018 to $10.9 million at December 31, 2018, loans held-for-sale of $2.9 million, or 42.9%, from $6.8 million at June 30, 2018 to $3.9 million
at December 31, 2018, foreclosed assets of $430,000, or 36.5%, from $1.2 million at June 30, 2018 to $747,000 at December 31, 2018, other assets of $253,000, or 30.1%, from $840,000 at June 30, 2018 to $587,000 at December 31, 2018, and
deferred tax asset of $21,000, or 1.9%, from $1.1 million at June 30, 2018 to $1.08 million at December 31, 2018. The increase in investment securities was primarily due to
the purchase $12.5 million of mortgage-backed securities offset by $5.8 million of principal repayments on mortgage-backed securities. The decrease in loans held-for-sale resulted primarily from a decrease in loans originated for sale during the
six months ended December 31, 2018. The decrease in foreclosed assets was due to the sale of eleven one-to-four family residences during the six months ended December 31, 2018.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Discussion of Financial Condition Changes from June 30, 2018 to December 31, 2018 (continued)
Cash and Cash Equivalents
Cash
and cash equivalents decreased
$5.0 million, or 31.5%, from $15.9 million at June 30, 2018 to $10.9 million at December 31, 2018. The $5.0 million decrease in cash and cash equivalents was used to help fund loan growth and pay off Federal Home Loan Bank advances.
Loans Receivable, Net
Loans receivable, net, increased by $4.6 million, or 1.4%, to $322.1 million at December 31, 2018 compared to $317.5 million at June 30,
2018. The increase in loans receivable, net was primarily due to increases in commercial real estate loans of $6.9 million, multi-family residential loans of $5.0 million, and other consumer loans of $164,000, partially offset by decreases in
construction loans of $2.6 million, commercial non-real estate loans of $1.9 million, one-to-four family residential loans of $1.8 million, equity line-of-credit loans of $511,000, land loans of $402,000, equity and second mortgage loans of
$154,000, and loans on savings accounts of $41,000.
Loans Held-for-Sale
Loans held-for-sale decreased $2.9 million, or 42.9%, from $6.8 million at June 30, 2018 to $3.9 million at December 31, 2018
.
The decrease in loans held-for-sale reflects a reduced emphasis on the Company’s mortgage banking operations in recent periods and a decrease in loans originated
for sale during the six months ended December 31, 2018.
Investment Securities
Investment securities amounted to $65.1 million at December 31, 2018 compared to $58.2 million at June 30, 2018, an increase of $6.9 million,
or 11.9%. The increase in investment securities was primarily due to the purchase of $12.5 million of mortgage-backed securities offset by $5.8 million of principal repayments on mortgage-backed securities.
Premises and Equipment, Net
Premises and equipment, net increased $917,000, or 7.5%, to $13.2 million at December 31, 2018 compared to $12.2 million at June 30, 2018,
primarily as a result of our new banking office expected to open during the quarter ended March 31, 2019.
Asset Quality
At December 31, 2018, the Company had $1.4 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more
past due, and foreclosed assets) compared to $3.0 million of non-performing assets at June 30, 2018, consisting of one commercial business loan, five single-family residential loans, one line of credit loan, one residential lot in foreclosed
assets, and one single family residential loan in foreclosed assets at December 31, 2018, compared to nine single-family residential loans, three line of credit loans, one commercial business loan, one residential lot in foreclosed assets, and two
single-family residential loans in foreclosed assets at June 30, 2018. At December 31, 2018, the Company had four single-family residential loans, one commercial business loan, and five loans to one borrower,
consisting of two commercial real estate loans, two non-real estate loans, and one single-family residential loan classified as substandard compared to eight single-family
residential loans, two line of credit loans, one commercial business loan, and five loans to one borrower, consisting of two commercial real estate loans, two
non-real
estate loans, and one single-family residential loan classified as substandard at June 30, 2018. There were no loans classified as doubtful at December 31, 2018 or June 30, 2018.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Discussion of Financial Condition Changes from June 30, 2018 to December 31, 2018 (continued)
Total Liabilities
Total liabilities increased $2.3 million, or 0.6%, from $374.6 million at June 30, 2018 to $376.9 million at December 31, 2018 primarily due
to an increase in total deposits of $13.1 million, or 3.6%, to $373.4 million at December 31, 2018 compared to $360.3 million at June 30, 2018, and an increase in other borrowings of $150,000, or 50.0%, from $300,000 at June 30, 2018 to $450,000 at
December 31, 2018, partially offset by a decrease of $10.1 million, or 87.1%, in advances from the Federal Home Loan Bank to $1.5 million at December 31, 2018 from $11.6 million at June 30, 2018, a decrease of $397,000, or 54.8%, in advances from
borrowers taxes and insurance to $328,000 at December 31, 2018 from $725,000 at June 30, 2018, and a decrease of $442,000, or 26.1%, in other accrued expenses and liabilities to $1.2 million at December 31, 2018 from $1.7 million at June 30,
2018. The increase in deposits was primarily due to a $19.7 million, or 12.2%, increase in certificates of deposits from $161.3 million at June 30, 2018 to $181.0 million at December 31, 2018, a $640,000, or 1.1%, increase in non-interest bearing
deposits from $58.0 million at June 30, 2018 to $58.6 million at December 31, 2018, and a $396,000, or 0.6%, increase in money market deposits from $70.2 million at June 30, 2018 to $70.6 million at December 31, 2018, partially offset by a decrease
of $6.3 million, or 18.2%, in NOW accounts from $34.6 million at June 30, 2018 to $28.3 million at December 31, 2018, and a decrease in savings deposits of $1.3 million, or 3.6%, from $36.2 million at June 30, 2018 to $34.9 million at December 31,
2018. The Company had $8.7 million in brokered deposits at June 30, 2018 and $11.1 million at December 31, 2018. 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. The decrease in advances from the Federal Home Loan Bank was primarily due to growth in total deposits which replaced advances as a source of funds.
Shareholders’ Equity
Shareholders’ equity increased $1.6 million, or 3.4%, to $48.6 million at December 31, 2018 from $47.0 million at June 30, 2018. The primary
reasons for the changes in shareholders’ equity from June 30, 2018 were net income of $2.4 million, the decrease in the Company’s accumulated other comprehensive loss of $163,000, the vesting of recognition and retention plan awards, stock
incentive plan share awards and stock options, and the release of employee stock ownership plan shares totaling $413,000, and proceeds from the issuance of common stock from the exercise of stock options of $198,000. These increases in
shareholders’ equity were partially offset by the acquisition of Company stock of $1.0 million, dividends paid totaling $529,000.
The Bank is required to meet minimum capital standards promulgated by the OCC. At December 31, 2018, Home Federal Bank’s regulatory capital
was well in excess of the minimum capital requirements.
Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2018 and 2017
General
Net income amounted to $1.2 million for the three months ended December 31, 2018 compared to $361,000
for the same period in 2017, an increase of $814,000, or 225.5%. The increase was primarily due to a decrease of $749,000, or 67.4%, in provision for income taxes, a
$190,000, or 5.1%, increase in net interest income, a decrease of $33,000, or 1.2%, in non-interest expense, along with a decrease of $100,000, or 50.0%, in provision for loan losses, partially offset by a decrease of $258,000, or 37.0%, in
non-interest income. The decrease in the provision for income taxes was primarily due to the Tax Cuts and Jobs Act (the “Tax Act”) signed into law on December 22, 2017 which reduced the Company’s effective tax rate for the three months ended
December 31, 2018 combined with the $642,000 re-measurement charge of the Company’s net deferred tax asset during the prior year quarterly period.
Net income amounted to $2.4 million for the six months ended December 31, 2018 compared to net income of $1.4 million for the same period in
2017, an increase of $1.0 million, or 74.8%. The increase was primarily due to a
$1.0 million, or 59.8%, decrease in the provision for income tax expense and a
$336,000, or 4.5%, increase in net interest income partially offset by a decrease of $150,000, or 30.0%, in provision for loan losses, and a decrease of $88,000, or 1.6%, in non-interest expense offset by a decrease of $557,000, or 33.5%, in
non-interest income. As was the case for the quarter, the decrease in the provision for income taxes for the six months ended December 31, 2018 over the same prior year period was primarily due to the reduction in the Company’s effective tax rate
combined with the $642,000 re-measurement charge of the Company’s net deferred tax asset as a result of the Tax Act during the six months ended December 31, 2017.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2018 and 2017 (continued)
Net Interest Income
The increase in net interest income for the three months ended December 31, 2018 was primarily due to a $409,000, or 8.9%, increase in total
interest income, primarily due to an increase in the average rate of loans receivable, partially offset by an increase of $219,000, or 25.6%, in interest expense. The cost of funds from Federal Home Loan Bank borrowings decreased $75,000, or 64.1%,
compared to the prior year three month period and interest paid on deposits increased $292,000, or 39.6%, compared to the prior year three month period. Interest paid on other borrowings increased $2,000 compared to the prior year three month
period. The Company’s average interest rate spread was 3.58% for the three months ended December 31, 2018 compared to 3.54% for the three months ended December 31, 2017. The Company’s net interest margin was 3.86% for the three months ended
December 31, 2018 compared to 3.76% for the three months ended December 31, 2018. The increase in net interest margin on a comparative quarterly basis was primarily the result of an increase of 33 basis points in average yield on average balances
of loans receivable for the three months ended December 31, 2018 compared to the prior quarterly period.
Net interest income for the six months ended December 31, 2018 was $7.8 million, an increase of $336,000, or 4.5%, in comparison to the six
months ended December 31, 2017. The increase in net interest income for the six month period was primarily due to a $702,000, or 7.6%, increase in total interest income, partially offset by an increase of $366,000, or 21.4%, in interest expense.
The cost of funds from Federal Home Loan Bank borrowings decreased $151,000, or 57.9%, compared to the prior year six month period and interest paid on deposits increased $514,000, or 35.6%, compared to the prior year six month period. Interest
paid on other borrowing increased $3,000 compared to the prior six month period. The Company’s average interest rate spread was 3.59% for the six months ended December 31, 2018, compared to 3.53% for the six months ended December 31, 2017. The
Company’s net interest margin was 3.86% for the six months ended December 31, 2018, compared to 3.75% for the six months ended December 31, 2017. The increase in the average interest rate spread is attributable primarily to an increase of 29 basis
points in average yield on average balances of loans receivable.
Provision for Losses on Loans
Based on an analysis of historical experience, the volume and type of lending conducted by Home Federal Bank, the status of past due
principal and interest payments, general economic conditions, particularly as such conditions relate to our market area, and other factors related to the collectability of Home Federal Bank’s loan portfolio, a provision for loan losses of $100,000
and $350,000 was made during the three and six months ended December 31, 2018, respectively, compared to a $200,000 and $500,000 provision made during the three and six months ended December 31, 2017. The allowance for loan losses was $3.5
million, or 1.06% of total loans receivable, at December 31, 2018 compared to $3.4 million, or 1.07% of total loans receivable, at December 31, 2017. At December 31, 2018, Home Federal Bank had $670,000 in non-performing loans and $747,000 in
foreclosed assets which totaled $1.4 million in non-performing assets. At December 31, 2017, Home Federal Bank had $2.7 million in non-performing loans and $540,000 in other real-estate owned. At December 31, 2018, the Company had four single
family residential loans, one commercial business loan, and five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one single family residential loan classified as substandard compared to eight
single family residential loans, two line of credit loans, one commercial business loan, and five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one single family residential loan classified as
substandard at June 30, 2018. There were no loans classified as doubtful at December 31, 2018 or December 31, 2017. At December 31, 2018 the Bank had troubled debt restructurings involving one commercial loan with a balance of $122,000, one single
family residential loan totaling $273,000, and five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one one-to-four family residential loan
totaling $4.6 million. At December 31, 2017 the Bank had troubled debt restructurings involving nine commercial loan contracts to one borrower with a recorded investment of approximately $1.6 million along with
another troubled debt restructuring at December 31, 2017 consisting of five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one one-to-four family residential loan totaling $4.7 million There
can be no assurance that the loan loss allowance will be sufficient to cover losses on non-performing assets in the future.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2018 and 2017 (continued)
Non-interest Income
The $258,000 decrease in non-interest income for the three months ended December 31, 2018, compared to the prior year quarterly period, was
primarily due to an increase of $229,000 in loss on sale of real estate, and a $56,000 decrease in gain on sale of mortgage loans, partially offset by an increase of $17,000 in service charges on deposit accounts, and an increase of $10,000 in
other income.
Total non-interest income amounted to $1.1 million for the six months ended December 31, 2018, a decrease of $557,000, or 33.5%, compared to
$1.7 million for the same period in 2017. The decrease was primarily due to decreases of $269,000 in gain on sale of loans, an increase of $227,000 in loss on sale of real estate, a decrease of $95,000 in gain on sale of securities, and a $1,000
decrease in income from bank owned life insurance, partially offset by a $28,000 increase in service charges on deposit accounts, and a $7,000 increase in other non-interest income. The Company sells most of its long term fixed rate residential
mortgage loan originations primarily in order to manage interest rate risk. The decrease in gain on sale of loans reflects a reduced emphasis on the Company’s mortgage banking operations in recent periods and fewer loans originated for sale.
Non-interest Expense
The $33,000 decrease in non-interest expense for the three months ended December 31, 2018, compared to the same period in 2017, is primarily
attributable to decreases of $34,000 in compensation and benefits expense, $32,000 in occupancy and equipment expense, $18,000 in data processing expense, $18,000 in deposit insurance premiums, $9,000 in loan and collection expense, $6,000 in
franchise and bank shares tax expense, and $4,000 in audit and examination fees. The decreases were partially offset by increases of $54,000 in advertising expense, $19,000 in other expense, and $15,000 in legal fees.
Total non-interest expense decreased $88,000, or 1.6%, for the six months ended December 31, 2018 compared to the same six month period in
2017. The decrease in non-interest expense for the six months ended December 31, 2018, compared to the same period in 2017, is primarily attributable to decreases of $133,000 in compensation and benefits expense, $35,000 in data processing expense,
$27,000 in loan and collection expense, $22,000 in occupancy and equipment expense, $16,000 in deposit insurance premiums, $7,000 in other non-interest expenses, and $4,000 in franchise and bank shares tax expense. These decreases were partially
offset by increases of $75,000 in real estate owned valuation expense, $72,000 in advertising expense, $8,000 in legal fees, and $1,000 in audit and examination fees.
The aggregate compensation expense recognized by the Company for its Stock Option, Share Award, ESOP, and Recognition and Retention Plans
amounted to $152,000 and $413,000 for the three and six months ended December 31, 2018, respectively, compared to $154,000 and $303,000 for the three and six months ended December 31, 2017, respectively.
The Louisiana bank shares tax is assessed on the Bank’s equity and earnings. For the three and six months ended December 31, 2018, the
Company recognized franchise and bank shares tax expense of $97,000 and $197,000, respectively, compared to $103,000 and $201,000 for the same periods in 2017.
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2018 and 2017 (continued)
Income Taxes
Income taxes amounted to $363,000 and $677,000 for the three and six months ended December 31, 2018, respectively, resulting in an effective
tax rate of 23.60% and 22.06%. Income taxes amounted to $1.1 million and $1.7 million for the three and six months ended December 31, 2017, respectively. The decrease in the provision for income taxes was primarily due to the Tax Cuts and Jobs
Act (the “Tax Act”) signed into law on December 22, 2017, which reduced the Company’s effective tax rate for the three and six months ended December 31, 2018 over the prior year quarterly period combined with the $642,000 re-measurement charge of
the Company’s net deferred tax asset during the prior year quarterly period.
Average Balances, Net
Interest Income, Yields Earned, and Rates Paid.
The following tables show for the periods indicated the total dollar amount of interest from
average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and yields have not been
adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be.
|
|
Three Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
Yield/
|
|
|
Average
|
|
|
|
|
|
Average
Yield/
|
|
|
|
(Dollars In Thousands)
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
327,893
|
|
|
$
|
4,569
|
|
|
|
5.53
|
%
|
|
$
|
326,397
|
|
|
$
|
4,280
|
|
|
|
5.20
|
%
|
Investment securities
|
|
|
58,704
|
|
|
|
333
|
|
|
|
2.25
|
|
|
|
58,740
|
|
|
|
280
|
|
|
|
1.89
|
|
Interest-earning deposits
|
|
|
16.526
|
|
|
|
94
|
|
|
|
2.26
|
|
|
|
8,211
|
|
|
|
27
|
|
|
|
1.30
|
|
Total interest-earning assets
|
|
$
|
403,123
|
|
|
|
4,996
|
|
|
|
4.92
|
%
|
|
$
|
393,348
|
|
|
|
4,587
|
|
|
|
4.63
|
%
|
Non-interest-earning assets
|
|
|
28,394
|
|
|
|
|
|
|
|
|
|
|
|
25,626
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
431,517
|
|
|
|
|
|
|
|
|
|
|
$
|
418,974
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts
|
|
$
|
35,685
|
|
|
|
48
|
|
|
|
0.53
|
%
|
|
$
|
37,317
|
|
|
|
50
|
|
|
|
0.50
|
%
|
NOW accounts
|
|
|
30,172
|
|
|
|
41
|
|
|
|
0.54
|
|
|
|
34,664
|
|
|
|
41
|
|
|
|
0.47
|
|
Money market accounts
|
|
|
70,292
|
|
|
|
168
|
|
|
|
0.95
|
|
|
|
41,836
|
|
|
|
41
|
|
|
|
0.39
|
|
Certificate accounts
|
|
|
177,615
|
|
|
|
773
|
|
|
|
1.73
|
|
|
|
168,085
|
|
|
|
606
|
|
|
|
1.43
|
|
Total interest-bearing deposits
|
|
|
313,764
|
|
|
|
1,030
|
|
|
|
1.30
|
|
|
|
281,902
|
|
|
|
738
|
|
|
|
1.04
|
|
Other bank borrowings
|
|
|
206
|
|
|
|
3
|
|
|
|
3.85
|
|
|
|
126
|
|
|
|
1
|
|
|
|
3.15
|
|
FHLB advances
|
|
|
5,334
|
|
|
|
42
|
|
|
|
3.12
|
|
|
|
30,534
|
|
|
|
117
|
|
|
|
1.53
|
|
Total interest-bearing liabilities
|
|
$
|
319,304
|
|
|
|
1,075
|
|
|
|
1.34
|
%
|
|
$
|
312,562
|
|
|
|
856
|
|
|
|
1.09
|
%
|
Non-interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand accounts
|
|
|
60,827
|
|
|
|
|
|
|
|
|
|
|
|
58,603
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
2,996
|
|
|
|
|
|
|
|
|
|
|
|
1,005
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
383,127
|
|
|
|
|
|
|
|
|
|
|
|
372,044
|
|
|
|
|
|
|
|
|
|
Total Stockholders’ Equity(1)
|
|
|
48,390
|
|
|
|
|
|
|
|
|
|
|
|
46,930
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
431,517
|
|
|
|
|
|
|
|
|
|
|
$
|
418,974
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
|
|
$
|
83,820
|
|
|
|
|
|
|
|
|
|
|
$
|
80,912
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income; average interest rate spread(2)
|
|
|
|
|
|
$
|
3,921
|
|
|
|
3.58
|
%
|
|
|
|
|
|
$
|
3,731
|
|
|
|
3.54
|
%
|
Net interest margin(3)
|
|
|
|
|
|
|
|
|
|
|
3.86
|
%
|
|
|
|
|
|
|
|
|
|
|
3.76
|
%
|
Average interest-earning assets to average
interest-bearing liabilities
|
|
|
|
|
|
|
|
126.25
|
%
|
|
|
|
|
|
|
|
|
|
|
125.90
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
__________________
(1)
|
Includes retained earnings and accumulated other comprehensive loss.
|
(2)
|
Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on
interest-bearing liabilities.
|
(3)
|
Net interest margin is net interest income divided by net average interest-earning assets.
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2018 and 2017 (continued)
|
|
Six Months Ended December 31,
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
|
|
|
Average
Yield/
|
|
|
Average
|
|
|
|
|
|
Average
Yield/
|
|
|
|
(Dollars In Thousands)
|
|
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans receivable
|
|
$
|
326,807
|
|
|
$
|
9,063
|
|
|
|
5.50
|
%
|
|
$
|
326,128
|
|
|
$
|
8,564
|
|
|
|
5.21
|
%
|
Investment securities
|
|
|
58,179
|
|
|
|
645
|
|
|
|
2.20
|
|
|
|
59,647
|
|
|
|
551
|
|
|
|
1.83
|
|
Interest-earning deposits
|
|
|
16,374
|
|
|
|
174
|
|
|
|
2.11
|
|
|
|
9,895
|
|
|
|
65
|
|
|
|
1.30
|
|
Total interest-earning assets
|
|
$
|
401,360
|
|
|
|
9,882
|
|
|
|
4.88
|
%
|
|
$
|
395,670
|
|
|
|
9,180
|
|
|
|
4.60
|
%
|
Non-interest-earning assets
|
|
|
28,511
|
|
|
|
|
|
|
|
|
|
|
|
26,050
|
|
|
|
|
|
|
|
|
|
Total assets
|
|
$
|
429,871
|
|
|
|
|
|
|
|
|
|
|
$
|
421,720
|
|
|
|
|
|
|
|
|
|
Interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Savings accounts
|
|
$
|
35,890
|
|
|
|
97
|
|
|
|
0.54
|
%
|
|
$
|
36,536
|
|
|
|
98
|
|
|
|
0.53
|
%
|
NOW accounts
|
|
|
31,626
|
|
|
|
83
|
|
|
|
0.52
|
|
|
|
35,472
|
|
|
|
85
|
|
|
|
0.48
|
|
Money market accounts
|
|
|
70,294
|
|
|
|
319
|
|
|
|
0.90
|
|
|
|
41,659
|
|
|
|
79
|
|
|
|
0.38
|
|
Certificate accounts
|
|
|
172,252
|
|
|
|
1,460
|
|
|
|
1.68
|
|
|
|
166,288
|
|
|
|
1,183
|
|
|
|
1.41
|
|
Total interest-bearing deposits
|
|
|
310,062
|
|
|
|
1,959
|
|
|
|
1.25
|
|
|
|
279,955
|
|
|
|
1,445
|
|
|
|
1.02
|
|
Other bank borrowings
|
|
|
202
|
|
|
|
4
|
|
|
|
3.93
|
|
|
|
62
|
|
|
|
1
|
|
|
|
3.20
|
|
FHLB advances
|
|
|
7,924
|
|
|
|
110
|
|
|
|
2.75
|
|
|
|
36,634
|
|
|
|
261
|
|
|
|
1.41
|
|
Total interest-bearing liabilities
|
|
$
|
318,188
|
|
|
|
2,073
|
|
|
|
1.29
|
%
|
|
$
|
316,651
|
|
|
|
1,707
|
|
|
|
1.07
|
%
|
Non-interest-bearing liabilities:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest bearing demand accounts
|
|
|
61,012
|
|
|
|
|
|
|
|
|
|
|
|
57,159
|
|
|
|
|
|
|
|
|
|
Other liabilities
|
|
|
2,902
|
|
|
|
|
|
|
|
|
|
|
|
1,117
|
|
|
|
|
|
|
|
|
|
Total liabilities
|
|
|
382,102
|
|
|
|
|
|
|
|
|
|
|
|
374,927
|
|
|
|
|
|
|
|
|
|
Total Stockholders’ Equity(1)
|
|
|
47,769
|
|
|
|
|
|
|
|
|
|
|
|
46,793
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total liabilities and equity
|
|
$
|
429,871
|
|
|
|
|
|
|
|
|
|
|
$
|
421,720
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest-earning assets
|
|
$
|
83,172
|
|
|
|
|
|
|
|
|
|
|
$
|
78,956
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income; average interest rate spread(2)
|
|
|
|
|
|
$
|
7.809
|
|
|
|
3.59
|
%
|
|
|
|
|
|
$
|
7.473
|
|
|
|
3.53
|
%
|
Net interest margin(3)
|
|
|
|
|
|
|
|
|
|
|
3.86
|
%
|
|
|
|
|
|
|
|
|
|
|
3.75
|
%
|
Average interest-earning assets to average
interest-bearing liabilities
|
|
|
|
|
|
|
|
126.14
|
%
|
|
|
|
|
|
|
|
|
|
|
124.93
|
%
|
____________________
(1)
|
Includes retained earnings and accumulated other comprehensive loss.
|
(2)
|
Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on
interest-bearing liabilities.
|
(3)
|
Net interest margin is net interest income divided by net average interest-earning assets.
|