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, 2012 of
$939,000, an increase of $137,000 compared to net income of
$802,000 reported for the three months ended September 30, 2011.
The Company's basic and diluted earnings per share were $0.36 and
$0.35, respectively, for the quarter ended September 30, 2012,
compared to basic and diluted earnings per share of $0.28 for the
quarter ended September 30, 2011.
The increase in net income for the three months ended September
30, 2012, resulted primarily from a $571,000, or 27.5%, increase in
net interest income, partially offset by an increase of $208,000,
or 11.2%, in non-interest expense, a $188,000, or 67.4%, increase
in income tax expense, a $25,000, or 29.1%, increase in the
provision for loan losses and a $13,000, or 1.4%, decrease in
non-interest income. The increase in net interest income for the
three months ended September 30, 2012, was due to an increase of
$466,000, or 16.2%, in total interest income primarily as a result
of an increase in volume of interest-earning assets, and a decrease
of $105,000, or 13.2%, 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 3.77% for the three months ended September 30, 2012,
compared to 3.23% for the prior year period. The Company's net
interest margin was 4.08% for the three months ended September 30,
2012, compared to 3.69% for the quarter ended September 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 51 basis points in average rate paid on interest-bearing
liabilities for the quarter ended September 30, 2012 compared to
the prior year quarterly period.
The following table sets forth the Company's average balance and
average yields earned and rates paid on its interest-earning assets
and interest-bearing liabilities for the three months ended
September 30, 2012 and 2011.
|
For the Three
Months Ended September 30, |
|
2012 |
2011 |
|
Average |
Average |
Average |
Average |
|
Balance |
Yield/Rate |
Balance |
Yield/Rate |
|
(Dollars in thousands) |
Interest-earning assets: |
|
|
|
|
Loans receivable |
$184,628 |
6.16% |
$134,591 |
6.72% |
Investment securities |
65,744 |
3.00 |
77,897 |
3.12 |
Interest-earning deposits |
9,097 |
0.27 |
12,232 |
0.16 |
Total interest-earning assets |
$259,469 |
5.15% |
$224,720 |
5.12% |
|
|
|
|
|
Interest-bearing liabilities: |
|
|
|
|
Savings accounts |
$ 6,793 |
0.28% |
$ 7,012 |
0.40% |
NOW accounts |
18,432 |
0.79 |
14,808 |
0.84 |
Money market accounts |
44,824 |
0.50 |
34,193 |
0.76 |
Certificates of deposit |
107,542 |
1.84 |
88,917 |
2.33 |
Total interest-bearing deposits |
177,591 |
1.34 |
144,930 |
1.71 |
FHLB advances |
23,167 |
1.73 |
24,271 |
2.92 |
Total interest-bearing liabilities |
$ 200,758 |
1.38% |
$169,201 |
1.89% |
The $13,000 decrease in non-interest income for the quarter
ended September 30, 2012, compared to the prior year quarterly
period was primarily due to decreases of $108,000 and $7,000 in
gain on sale of securities and income from bank owned life
insurance, respectively, partially offset by increases of $89,000
and $13,000 in gain on loans held for sale and other non-interest
income, respectively. The Company sells most of its fixed rate
mortgage loan originations other than those loans selected for
portfolio. The increase in non-interest expense for the quarter
ended September 30, 2012 compared to 2011 was primarily due to
increases in compensation and benefits expense of $197,000 due in
part to increasing loan volume and related commissions to
commercial and residential loan officers as well as increases of
$10,000 in occupancy and equipment expense, $9,000 in loan and
collection expense, $11,000 in data processing costs, and $12,000
in legal expenses. The $111,000 provision for loan losses during
the three months ended September 30, 2012, an increase of $25,000
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.
At September 30, 2012, the Company reported total assets of
$270.2 million, a decrease of $26.0 million, or 8.8%, compared to
total assets of $296.2 million at June 30, 2012. The decrease in
assets was comprised primarily of decreases in investment
securities of $2.8 million, or 4.0%, from $69.8 million at June 30,
2012, to $67.0 million at September 30, 2012, loans held-for-sale
of $2.0 million, or 17.9%, from $11.2 million at June 30, 2012 to
$9.2 million at September 30, 2012, and a decrease in cash and cash
equivalents of $28.0 million, from $34.9 million at June 30, 2012
to $6.8 million at September 30, 2012, partially offset by an
increase in net loans receivable of $6.6 million, or 3.9% from
$168.3 million at June 30, 2012 to $174.8 million at September 30,
2012. The decrease in loans held-for-sale primarily reflects a
decrease at September 30, 2012 in receivables from financial
institutions purchasing the Company's loans held-for-sale. The
decrease 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 September 30, 2012. The
decrease in investment securities was due to sales and principal
repayments during the quarter ended September 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 following table shows total loans originated and sold during
the periods indicated. Included in the $9.5 million of construction
loan originations for the quarter ended September 30, 2012 are
approximately $7.6 million of one-to-four-family residential
construction loans and $1.9 million of commercial and multi-family
construction loans.
|
Quarter
Ended |
|
|
September
30, |
|
|
2012 |
2011 |
% Change |
|
(In thousands) |
|
Loan originations: |
|
|
|
One- to four-family residential |
$46,430 |
$39,365 |
17.95% |
Commercial — real estate secured (owner
occupied and non-owner occupied) |
2,681 |
1,050 |
155.33% |
Commercial business |
571 |
959 |
(40.46)% |
Land |
1,308 |
1,154 |
13.34% |
Construction |
9,522 |
9,108 |
4.55% |
Home equity loans and lines of credit and
other consumer |
101 |
2,047 |
(95.07)% |
Total loan originations |
$60,613 |
$53,683 |
12.91% |
Loans sold |
$36,915 |
$28,650 |
28.85% |
Total liabilities decreased $24.9 million, or 10.1%, from $246.3
million at June 30, 2012 to $221.4 million at September 30, 2012,
primarily due to a decrease in total deposits of $28.3 million, or
12.7%, to $193.2 million at September 30, 2012, compared to $221.4
million at June 30, 2012. The decrease in deposits was primarily
due to the withdrawal during the quarter of the non-recurring
deposit discussed above which had a balance of approximately $31.7
million at June 30, 2012. 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. At both September 30, 2012
and June 30, 2012, the Company had $10.4 million in brokered
deposits. Advances from the Federal Home Loan Bank of Dallas
increased $2.8 million, or 11.9%, to $26.3 million at September 30,
2012, from $23.5 million at June 30, 2012. At September 30,
2012, the Company had no non-performing assets compared to $14,000
of non-performing assets at June 30, 2012, consisting of
single-family residential loans.
Shareholders' equity decreased $1.0 million, or 2.0%, to $48.9
million at September 30, 2012, from $49.9 million at June 30,
2012. The primary reasons for the decrease in shareholders'
equity from June 30, 2012, were the acquisition of treasury stock
of $2.3 million, and dividends paid of $172,000. These decreases in
shareholders' equity were partially offset by net income of
$939,000 for the quarter ended September 30, 2012, proceeds from
the issuance of common stock from the exercise of stock options of
$387,000, the vesting of restricted stock awards, stock options and
release of employee stock ownership plan shares totaling $99,000
and an increase in the Company's accumulated other comprehensive
income of $45,000.
The Company repurchased 127,309 shares of its common stock
during the quarter ended September 30, 2012 at an average price per
share of $17.14. In February 2012 the Company had announced its
first share repurchase program which covered up to 305,000 shares.
On September 14, 2012, the Company announced a second share
repurchase program for an additional 275,000 shares to commence on
completion of the first repurchase program. As of September 30,
2012, the first share repurchase program had been completed and
there were a total of 273,640 shares remaining for repurchase under
the second 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) |
|
September 30, |
June 30, |
|
2012 |
2012 |
ASSETS |
(Unaudited) |
|
|
|
Cash and cash equivalents |
$6,835 |
$34,863 |
Securities available for sale at fair
value |
65,578 |
68,426 |
Securities held to maturity (fair value
September 30, 2012: $1,470; June 30, 2012: $1,381) |
1,470 |
1,381 |
Loans held-for-sale |
9,158 |
11,157 |
Loans receivable, net of allowance for loan
losses (September 30, 2012: $1,809; June 30, 2012: $1,698) |
174,839 |
168,263 |
Other assets |
12,349 |
12,093 |
|
|
|
Total assets |
$270,229 |
$296,183 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Deposits |
$193,158 |
$221,436 |
Advances from the Federal Home Loan Bank of
Dallas |
26,264 |
23,469 |
Other liabilities |
1,941 |
1,390 |
|
|
|
Total liabilities |
221,363 |
246,295 |
|
|
|
Shareholders' equity |
48,866 |
49,888 |
|
|
|
Total liabilities and shareholders'
equity |
$270,229 |
$296,183 |
|
|
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(In thousands, except per share
data) |
|
|
|
Three Months
Ended |
|
September
30, |
|
2012 |
2011 |
|
(Unaudited) |
|
|
|
Interest income |
|
|
Loans, including fees |
$2,841 |
$2,262 |
Mortgage-backed securities |
485 |
542 |
Other interest-earning assets |
14 |
70 |
Total interest income |
3,340 |
2,874 |
Interest expense |
|
|
Deposits |
593 |
621 |
Federal Home Loan Bank borrowings |
100 |
177 |
Total interest expense |
693 |
798 |
Net interest income |
2,647 |
2,076 |
Provision for loan losses |
111 |
86 |
Net interest income after provision for
loan losses |
2,536 |
1,990 |
|
|
|
Non-interest income |
|
|
Gain on sale of loans |
682 |
593 |
Gain on sale of securities |
95 |
203 |
Income on Bank Owned Life Insurance |
49 |
56 |
Other income |
105 |
92 |
|
|
|
Total non-interest income |
931 |
944 |
|
|
|
Non-interest expense |
|
|
Compensation and benefits |
1,318 |
1,121 |
Occupancy and equipment |
206 |
196 |
Franchise and bank shares tax |
84 |
95 |
Advertising |
60 |
60 |
Data processing |
87 |
76 |
Audit and examination fees |
48 |
50 |
Legal fees |
88 |
76 |
Loan and collection expense |
40 |
31 |
Deposit insurance premiums |
31 |
25 |
Other expenses |
99 |
123 |
|
|
|
Total non-interest expense |
2,061 |
1,853 |
|
|
|
Income before income taxes |
1,406 |
1,081 |
Provision for income tax expense |
467 |
279 |
|
|
|
NET INCOME |
$ 939 |
$802 |
|
|
|
EARNINGS PER SHARE |
|
|
Basic |
$0.36 |
$0.28 |
Diluted |
$0.35 |
$0.28 |
|
|
|
|
Three Months
Ended |
|
September
30, |
|
2012 |
2011 |
|
(Unaudited) |
Selected Operating
Ratios(1): |
|
|
Average interest rate spread |
3.77% |
3.23% |
Net interest margin |
4.08% |
3.69% |
Return on average assets |
1.37% |
1.34% |
Return on average equity |
7.64% |
6.36% |
|
|
|
Asset Quality
Ratios(2): |
|
|
Non-performing assets as a percent of
total assets |
--% |
0.04% |
Allowance for loan losses as a percent of
non-performing loans |
--% |
1042.70% |
Allowance for loan losses as a percent of
total loans receivable |
1.02% |
0.72% |
|
|
|
Per Share Data: |
|
|
Shares outstanding at period end |
2,778,019 |
3,051,881 |
Weighted average shares outstanding: |
|
|
Basic |
2,594,088 |
2,858,575 |
Diluted |
2,661,334 |
2,886,549 |
Tangible book value at period end |
$17.59 |
$17.14 |
|
|
|
(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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