Home Federal Bancorp, Inc. of Louisiana Reports Net Income for Q2 2024 and Year-to-Date 2024

Strategic Insights -

Home Federal Bancorp, Inc. of Louisiana, the holding company of Home Federal Bank, reported net income for the three months ended June 30, 2024, of $638,000 compared to net income of $1.3 million reported for the three months ended June 30, 2023. The decrease in net income was driven by a decrease in net interest income of $1.1 million, or 20.0%, partially offset by a decrease in non-interest expense of $207,000, or 4.9%, a decrease in provision for income taxes of $157,000, or 45.8%, a decrease in provision of credit losses of $105,000, or 70.0%, and an increase in non-interest income of $2,000, or 0.4%. The decrease in net interest income was primarily due to an increase in total interest expense of $1.2 million, or 50.5%, partially offset by an increase in total interest income of $70,000, or 0.9%.

The Company reported net income of $3.6 million for the year ended June 30, 2024, compared to $5.7 million for the year ended June 30, 2023. The decrease in net income was driven by a decrease in net interest income of $2.6 million, or 12.1%, a decrease in non-interest income of $515,000, or 24.5%, and an increase in non-interest expense of $413,000, or 2.6%, partially offset by a decrease in the provision of credit losses of $828,000, or 95.4%, and a decrease in provision for income taxes of $590,000, or 55.3%.

The Company adopted the new current expected credit loss (CECL) methodology for estimating credit losses on July 1, 2023, which resulted in a $189,000 increase to the allowance for credit losses (the ACL) and a one-time cumulative adjustment resulted in a $189,000 decrease to stockholders equity.

Key Takeaways:

  • Net income for the three months ended June 30, 2024, was $638,000 compared to $1.3 million reported for the three months ended June 30, 2023.
  • Net interest income decreased by $1.1 million, or 20.0%, in the three months ended June 30, 2024, compared to the same period in 2023.
  • The decrease in net interest income was primarily due to an increase in total interest expense of $1.2 million, or 50.5%, partially offset by an increase in total interest income of $70,000, or 0.9%.
  • The Company reported net income of $3.6 million for the year ended June 30, 2024, compared to $5.7 million for the year ended June 30, 2023.
  • The decrease in net interest income was driven by a decrease in non-interest income of $515,000, or 24.5%, and an increase in non-interest expense of $413,000, or 2.6%, partially offset by a decrease in the provision of credit losses of $828,000, or 95.4%, and a decrease in provision for income taxes of $590,000, or 55.3%.
  • The Company adopted the new CECL methodology for estimating credit losses on July 1, 2023, which resulted in a $189,000 increase to the ACL and a one-time cumulative adjustment resulted in a $189,000 decrease to stockholders equity.

Statistics:

  • Net interest income for the three months ended June 30, 2024, was $4.9 million compared to $6.0 million reported for the three months ended June 30, 2023.
  • Net interest income for the year ended June 30, 2024, was $18.2 million compared to $20.8 million reported for the year ended June 30, 2023.
  • The average interest rate spread for the three months ended June 30, 2024, was 2.15% compared to 2.84% reported for the three months ended June 30, 2023.
  • The net interest margin for the three months ended June 30, 2024, was 2.91% compared to 3.35% reported for the three months ended June 30, 2023.
  • Total assets decreased by $23.4 million, or 3.5%, from $660.9 million at June 30, 2023 to $637.5 million at June 30, 2024.

Sources:

  • GlobeNewswire - Home Federal Bancorp, Inc. of Louisiana Reports Net Income for Q2 2024 and Year-to-Date 2024