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 June 30, 2012 of $773,000, an
increase of $295,000 compared to net income of $478,000 reported
for the three months ended June 30, 2011. The Company's basic and
diluted earnings per share were $0.29 and $0.28, respectively, for
the quarter ended June 30, 2012, compared to basic and diluted
earnings per share of $0.17 for the quarter ended June 30, 2011.
The Company reported net income of $2.8 million for the
year ended June 30, 2012, an increase of $905,000 compared to $1.9
million for the year ended June 30, 2011. The Company's basic and
diluted earnings per share were $1.02 and $1.01, respectively, for
the year ended June 30, 2012, compared to basic and diluted
earnings per share of $0.67 for the year ended June 30, 2011.
The increase in net income for the three months ended June
30, 2012, resulted primarily from a $706,000, or 36.6%, increase in
net interest income and a $268,000, or 45.8%, increase in
non-interest income. These changes were partially offset by an
increase of $321,000, or 18.3%, in non-interest expense, a $272,000
or 289.4% increase in the provision for loan losses and an $86,000,
or 46.0%, increase in income tax expense. The increase in net
interest income for the three months ended June 30, 2012, was due
to an increase of $643,000, or 23.7%, in total interest income
primarily as a result of an increase in volume of interest-earning
assets, and a decrease of $63,000, or 8.1%, 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 3.76% for the three
months ended June 30, 2012, compared to 3.11% for the prior year
period. The Company's net interest margin was 4.08% for the three
months ended June 30, 2012, compared to 3.60% for the quarter ended
June 30, 2011. The increase in average interest rate spread and 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 52 basis points in average rate paid on
interest-bearing liabilities for the quarter ended June 30, 2012
compared to the prior year period.
The increase in net income for the year ended June 30,
2012, resulted primarily from a $2.6 million, or 36.0%, increase in
net interest income and a $694,000, or 26.4%, increase in
non-interest income. These changes were partially offset by a $1.7
million, or 25.5%, increase in non-interest expense, a $189,000, or
20.1%, increase in income taxes and a $503,000, or 142.5%, increase
in the provision for loan losses. Similar to the increase for the
quarter ended June 30, 2012, the increase in net interest income
for the year ended June 30, 2012 was primarily due to an increase
in total interest income as a result of an increase in the volume
of interest-earning assets and 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 3.62%
for the year ended June 30, 2012, compared to 3.09% for the year
ended June 30, 2011. The Company's net interest margin was 4.00%
for the year ended June 30, 2012, compared to 3.60% for the year
ended June 30, 2011. The increase in average interest rate spread
and net-interest margin for the year ended June 30, 2012 compared
to 2011 was primarily due to a $44.4 million increase in average
balance of interest-earning assets and a decrease of 49 basis
points in average rate paid on interest-bearing liabilities.
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
periods indicated.
|
For the Three
Months Ended |
|
June 30,
2012 |
June 30,
2011 |
|
Average
Balance |
Average
Yield/Rate |
Average
Balance |
Average
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Loans receivable |
$176,534 |
6.32% |
$127,135 |
6.63% |
Investment
securities |
69,248 |
3.25 |
80,442 |
2.98 |
Interest-earning
deposits |
12,598 |
0.06 |
6,639 |
0.23 |
Total interest-earning
assets |
$258,380 |
5.19% |
$214,216 |
5.06% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
$ 6,842 |
0.64% |
$ 6,789 |
0.38% |
NOW accounts |
16,641 |
0.72 |
14,072 |
0.71 |
Money market
accounts |
47,199 |
0.40 |
30,706 |
0.90 |
Certificates of
deposit |
106,561 |
1.93 |
82,487 |
2.35 |
Total interest-bearing
deposits |
177,243 |
1.36 |
134,054 |
1.74 |
FHLB advances |
24,080 |
1.91 |
26,578 |
2.95 |
Total interest-bearing
liabilities |
$ 201,323 |
1.43% |
$160,631 |
1.95% |
|
|
|
|
|
|
For the Year
Ended |
|
June 30,
2012 |
June 30,
2011 |
|
Average
Balance |
Average
Yield/Rate |
Average
Balance |
Average
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Loans receivable |
$156,759 |
6.50% |
$115,505 |
6.62% |
Investment
securities |
76,310 |
3.31 |
67,024 |
3.92 |
Interest-earning
deposits |
8,674 |
0.14 |
14,793 |
0.16 |
Total interest-earning
assets |
$241,743 |
5.26% |
$197,322 |
5.22% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
$ 6,600 |
0.59% |
$ 6,125 |
0.41% |
NOW accounts |
16,854 |
0.71 |
10,384 |
0.63 |
Money market
accounts |
39,044 |
0.55 |
27,542 |
0.94 |
Certificates of
deposit |
97,838 |
2.13 |
78,971 |
2.44 |
Total interest-bearing
deposits |
160,336 |
1.54 |
123,022 |
1.85 |
FHLB advances |
25,492 |
2.31 |
26,630 |
3.41 |
Total interest-bearing
liabilities |
$185,828 |
1.64% |
$149,652 |
2.13% |
The $268,000 increase in non-interest income for the quarter
ended June 30, 2012, compared to the prior year quarterly period
was primarily due to an increase of $176,000 and $18,000,
respectively, in gain on loans held for sale and gain on sale of
investments, in addition to increases of $21,000 and $53,000,
respectively, in income from bank owned life insurance and other
non-interest income. The $694,000 increase in non-interest income
for the year ended June 30, 2012, compared to the prior year period
was primarily due to increases of $558,000 and $179,000,
respectively, in gain on loans held for sale and income from bank
owned life insurance, partially offset by decreases of $40,000, in
gain on sale of investments and $3,000 in other non-interest
income. The Company sells most of its fixed rate mortgage loan
originations other than those loans selected for portfolio. The
increases in non-interest expense for the quarter and year ended
June 30, 2012 compared to 2011 were primarily due to increases in
compensation and benefits expense of $287,000 and $1.0 million,
respectively, due in part to increasing loan volume and related
commissions to commercial and residential loan officers during
fiscal 2012, as well as increases of $36,000 and $203,000,
respectively, in occupancy and equipment expense, $8,000 and
$26,000, respectively, in advertising expense, $12,000 and
$112,000, respectively, in data processing costs, and $1,000 and
$222,000, respectively, in legal expenses. The $366,000 provision
for loan losses during the three months ended June 30, 2012, an
increase of $272,000 over the prior year three month period,
reflects the increase in loan loss allowances deemed necessary by
management for risks associated with the increasing volume of
non-residential and commercial loans. For the year ended June 30,
2012, the provision for loan losses increased $503,000 over the
prior year period for a total provision of $856,000.
At June 30, 2012, the Company reported total assets
of $296.2 million, an increase of $62.9 million, or 26.9%, compared
to total assets of $233.3 million at June 30, 2011. The increase in
assets was comprised primarily of increases in net loans receivable
of $42.9 million, or 34.2%, from $125.4 million at June 30, 2011,
to $168.3 million at June 30, 2012, loans held-for-sale of $4.5
million, or 67.7%, from $6.7 million at June 30, 2011 to $11.2
million at June 30, 2012, and an increase in cash and cash
equivalents of $25.3 million, from $9.6 million at June 30, 2011 to
$34.9 million at June 30, 2012, partially offset by a decrease in
investment securities of $11.0 million, or 13.6%, from $80.8
million at June 30, 2011 to $69.8 million at June 30, 2012. The
increase in loans held-for-sale primarily reflects an increase in
residential mortgage loan originations during the year ended June
30, 2012. In addition, a slight increase at year end in receivables
from financial institutions purchasing the Company's loans
held-for-sale contributed to this increase. The increase in cash
and cash equivalents was due to a non-recurring deposit in the
fourth quarter which had a balance of approximately $31.7 million
at June 30, 2012. The deposit was short-term in nature and has been
withdrawn as of the date hereof. The decrease in investment
securities was due to sales and principal repayments during the
year ended June 30, 2012. During the quarter ended June 30, 2012,
$3.6 million of mortgage-backed securities designated as
held-to-maturity were transferred to the investment securities
available for sale category in anticipation of their sale. The
gross unrealized gains on these securities at June 30, 2012 were
$155,000.
The following table shows total loans originated
and sold during the periods indicated. Included in the $39.6
million of construction loan originations for the year ended June
30, 2012 are approximately $27.1 million of one-to-four-family
residential construction loans and $12.5 million of commercial and
multi-family construction loans.
|
Year
Ended June 30, |
|
|
2012 |
2011 |
% Change |
Loan originations: |
(In thousands) |
|
One-- to four-family
residential |
$163,326 |
$122,981 |
32.8% |
Commercial — real
estate secured (owner occupied and non-owner occupied) |
13,195 |
20,575 |
(35.9)% |
Multi-family
residential |
4,751 |
3,964 |
19.9% |
Commercial business |
14,145 |
14,034 |
0.8% |
Land |
7,596 |
6,400 |
18.7% |
Construction |
39,608 |
15,367 |
157.7% |
Home equity loans and
lines of credit and other consumer |
9,309 |
10,688 |
(12.9)% |
Total loan
originations |
251,930 |
194,009 |
29.9% |
Loans sold |
(119,969) |
(116,503) |
3.0% |
Total deposits increased $67.8 million, or 44.1%, to
$221.4 million at June 30, 2012, compared to $153.6 million at June
30, 2011. During the quarter ended March 31, 2012, the Company
began to utilize 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 are callable by Home
Federal Bank after twelve months. At June 30, 2012, the Company had
$10.4 million in brokered deposits. Advances from the Federal Home
Loan Bank of Dallas decreased $3.4 million, or 12.7%, to $23.5
million at June 30, 2012, from $26.9 million at June 30, 2011. At
June 30, 2012, the Company had $14,000 of non-performing assets
compared to $114,000 of non-performing assets, or 0.05% of total
assets, at June 30, 2011, consisting of single-family residential
loans at both periods.
Shareholders' equity decreased $1.3 million, or 2.5%, to
$49.9 million at June 30, 2012, from $51.2 million at June 30,
2011. The primary reasons for the decrease in shareholders' equity
from June 30, 2011, were the acquisition of treasury stock of $2.7
million, the acquisition of common stock for the company's
recognition and retention plan trust in the amount of $1.1 million,
dividends paid of $727,000 and a decrease in the Company's
accumulated other comprehensive income of $54,000. These decreases
in shareholders' equity were partially offset by net income of $2.8
million for the year ended June 30, 2012, proceeds from the
issuance of common stock from the exercise of stock options of
$201,000 and the vesting of restricted stock awards, stock options
and release of employee stock ownership plan shares totaling
$242,000.
The Company repurchased 93,895 shares of its common stock
during the fourth quarter of 2012 at an average price per share of
$14.73 under the share repurchase program announced in February
2012. The repurchase program covered up to 305,000 shares, or
approximately 10%, of the Company's outstanding common stock. As of
June 30, 2012, there were 125,949 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.
The Home Federal Bancorp, Inc. of Louisiana logo is available at
http://www.globenewswire.com/newsroom/prs/?pkgid=6986
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) |
|
|
|
|
|
June
30, |
|
|
2012 |
2011 |
|
ASSETS |
(Unaudited) |
|
|
|
|
|
Cash and cash equivalents |
$ 34,863 |
$ 9,599 |
|
Securities available for sale at fair
value |
68,426 |
75,039 |
|
Securities held to maturity (fair value June
30, 2012: $1,381; June 30, 2011: $5,638) |
1,381 |
5,725 |
|
Loans held-for-sale |
11,157 |
6,653 |
Loans receivable, net of allowance for loan
losses (June 30, 2012: $1,698; June 30, 2011: $842) |
168,263 |
125,371 |
Other assets |
12,093 |
10,933 |
|
|
|
|
|
Total assets |
$296,183 |
$233,320 |
|
|
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
|
|
Deposits |
$221,436 |
$153,616 |
|
Advances from the Federal Home Loan Bank of
Dallas |
23,469 |
26,891 |
|
Other liabilities |
1,390 |
1,630 |
|
|
|
|
|
Total liabilities |
246,295 |
182,137 |
|
|
|
|
|
Shareholders' equity |
49,888 |
51,183 |
|
|
|
|
|
Total liabilities and
shareholders' equity |
$296,183 |
$233,320 |
|
|
|
|
|
|
|
|
|
|
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(In thousands, except per share
data) |
|
|
|
|
|
|
Three Months
Ended June 30, |
Year Ended June
30, |
|
2012 |
2011 |
2012 |
2011 |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Interest income |
|
|
|
|
Loans, including
fees |
$2,788 |
$2,108 |
$10,181 |
$7,647 |
Mortgage-backed
securities |
563 |
598 |
2,433 |
2,474 |
Other interest-earning
assets |
2 |
4 |
108 |
176 |
Total interest
income |
3,353 |
2,710 |
12,722 |
10,297 |
Interest expense |
|
|
|
|
Deposits |
603 |
584 |
2,461 |
2,279 |
Federal Home Loan Bank
borrowings |
115 |
197 |
589 |
907 |
Total interest
expense |
718 |
781 |
3,050 |
3,186 |
Net interest income |
2,635 |
1,929 |
9,672 |
7,111 |
Provision for loan losses |
366 |
94 |
856 |
353 |
Net interest income after
provision for loan losses |
2,269 |
1,835 |
8,816 |
6,758 |
|
|
|
|
|
Non-interest income |
|
|
|
|
Gain on sale of
loans |
589 |
413 |
2,353 |
1,795 |
Gain on sale of
securities |
108 |
90 |
362 |
402 |
Income on Bank Owned Life
Insurance |
47 |
26 |
205 |
26 |
Other income |
109 |
56 |
404 |
407 |
|
|
|
|
|
Total non-interest
income |
853 |
585 |
3,324 |
2,630 |
|
|
|
|
|
Non-interest expense |
|
|
|
|
Compensation and
benefits |
1,328 |
1,041 |
5,086 |
4,068 |
Occupancy and
equipment |
194 |
158 |
753 |
550 |
Franchise and bank shares
tax |
87 |
89 |
318 |
248 |
Advertising |
75 |
67 |
282 |
256 |
Data processing |
100 |
88 |
345 |
233 |
Audit and examination
fees |
49 |
60 |
266 |
257 |
Legal fees |
71 |
70 |
387 |
165 |
Loan and collection
expense |
28 |
27 |
145 |
133 |
Deposit insurance
premiums |
30 |
28 |
113 |
117 |
Other expenses |
114 |
127 |
475 |
485 |
|
|
|
|
|
Total non-interest
expense |
2,076 |
1,755 |
8,170 |
6,512 |
|
|
|
|
|
Income before income
taxes |
1,046 |
665 |
3,970 |
2,876 |
Provision for income tax expense |
273 |
187 |
1,127 |
938 |
|
|
|
|
|
NET INCOME |
$773 |
$478 |
$ 2,843 |
$1,938 |
|
|
|
|
|
EARNINGS PER SHARE |
|
|
|
|
Basic |
$0.29 |
$0.17 |
$1.02 |
$0.67 |
Diluted |
$0.28 |
$0.17 |
$1.01 |
$0.67 |
|
|
|
|
|
|
Three Months
Ended June 30, |
Year Ended June
30, |
|
2012 |
2011 |
2012 |
2011 |
|
(Unaudited) |
(Unaudited) |
Selected Operating
Ratios(1): |
|
|
|
|
Average interest rate
spread |
3.76% |
3.11% |
3.62% |
3.09% |
Net interest margin |
4.08% |
3.60% |
4.00% |
3.60% |
Return on average
assets |
1.13% |
0.84% |
1.11% |
0.93% |
Return on average
equity |
6.19% |
3.81% |
5.62% |
4.47% |
|
|
|
|
|
Asset Quality
Ratios(2): |
|
|
|
|
Non-performing assets as
a percent of total assets |
*% |
0.05% |
*% |
0.05% |
Allowance for loan losses
as a percent of non-performing loans |
12128.57% |
738.60% |
12128.57% |
738.60% |
Allowance for loan losses
as a percent of total loans receivable |
1.00% |
0.67% |
1.00% |
0.67% |
|
|
|
|
|
Per Share Data: |
|
|
|
|
Shares outstanding at
period end |
2,877,032 |
3,045,829 |
2,877,032 |
3,045,829 |
Weighted average shares
outstanding: |
|
|
|
|
Basic |
2,683,551 |
2,853,803 |
2,799,945 |
2,903,578 |
Diluted |
2,722,588 |
2,858,420 |
2,818,075 |
2,908,195 |
Tangible book value at
period end |
$17.34 |
$16.80 |
$17.34 |
$16.80 |
|
|
|
|
|
* Not meaningful |
|
|
|
|
(1) Ratios for the three month
periods are annualized. |
|
|
|
(2) Asset quality ratios are end
of period ratios. |
|
|
|
CONTACT: Daniel R. Herndon
President and Chief Executive Officer
James R. Barlow
Executive Vice President and Chief Operating Officer
(318) 222-1145
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