Home Federal Bancorp, Inc. of Louisiana (the "Company")
(Nasdaq:HFBLD), the holding company of Home Federal Bank, reported
net income for the three months ended December 31, 2010 of
$502,000, an increase of $253,000, or 101.6%, from $249,000 in net
income reported for the three months ended December 31, 2009.
Earnings per basic and diluted share were $0.17 for the quarter
ended December 31, 2010, compared to $0.08 per basic and diluted
share for the quarter ended December 31, 2009.
The Company reported net income of $1.1 million for the
six months ended December 31, 2010 compared to $501,000 for the six
months ended December 31, 2009. Basic and diluted earnings per
share were $0.39 for the six months ended December 31, 2010
compared to $0.17 for the six months ended December 31, 2009.
The Company completed its conversion from the mutual
holding company form of organization to the stock holding company
form on December 22, 2010. As a result of the conversion, Home
Federal Bancorp, Inc. of Louisiana, a newly formed Louisiana
chartered corporation, became the holding company for Home Federal
Bank, and Home Federal Mutual Holding Company of Louisiana and the
former Home Federal Bancorp, Inc. of Louisiana ceased to exist. As
part of the conversion, the Company completed a public offering of
common stock that raised $17.1 million in net proceeds and shares
of common stock of the former holding company were exchanged for
shares of common stock of the Company. Per share amounts for prior
periods have been adjusted to reflect the share exchange.
The increase in net income for the three months ended
December 31, 2010 resulted primarily from a $373,000, or 27.3%,
increase in net interest income, and a $495,000, or 173.7%,
increase in non-interest income, partially offset by an increase of
$335,000, or 26.3%, in non-interest expense, an increase of
$151,000 in the provision for loan losses and a $129,000, or
100.8%, increase in the provision for income taxes. The increase in
net interest income was due to an increase of $309,000, or 13.8%,
in total interest income as a result of an increase in volume of
interest-earning assets and a decrease of $64,000, or 7.4%, in
interest expense on borrowings and deposits due to an overall
decline in the average cost of funds. The increase in
non-interest income was primarily due to a $366,000 increase in
gain on sale of loans held-for-sale and a $233,000 increase in
other income, partially offset by a decrease of $104,000 in gain on
sale of investments. The Company sells most of its fixed-rate
residential mortgage loan originations. The increase in
non-interest expense was primarily due to an increase in
compensation and benefits expense of $167,000, or 20.4%, due to the
hiring of commercial loan officers and other employees, as well as
increases of $91,000 in advertising expense, $33,000 in occupancy
expenses, $30,000 in data processing costs, and $14,000 in
miscellaneous non-interest expenses attributable to increases in
other general office overhead expenses. The $151,000 charge to
the provision for loan losses during the three months ended
December 31, 2010, 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 six months ended December 31, 2010, the Company reported
net earnings of $1.1 million, or diluted earnings per share of
$0.35, an increase of $647,000, or 129.1%, as compared to the
$501,000 in net earnings, reported for the six months ended
December 31, 2009. The increase in net earnings for the six months
ended December 31, 2010 resulted primarily from a $798,000, or
30.1%, increase in net interest income and a $1.3 million, or
376.1%, increase in non-interest income. These changes were
partially offset by an $872,000, or 39.1%, increase in non-interest
expense, a $331,000, or 128.3%, increase in income taxes and a
$223,000 charge to the provision for loan losses. Similar to the
increase for the quarter ended December 31, 2010, the increase in
net interest income for the six month period 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 3.38% for the six months ended December 31, 2010, compared to
2.82% for the six months ended December 31, 2009. The Company's net
interest margin was 3.72% for the six months ended December 31,
2010, compared to 3.33% for the six months ended December 31,
2009. The increase in net interest margin and average interest
rate spread is attributable primarily to the implementation of the
Company's strategy to enhance our core earnings by increasing
commercial loan volume and related income in conjunction with
decreasing costs associated with deposits and advances from the
Federal Home Loan Bank. The increase in non-interest income was
primarily due to an increase of $126,000, or 67.7%, in gain on sale
of investments and an increase of $901,000, or 698.4%, in gain on
sale of loans, from the prior year period.
At December 31, 2010, the Company reported total assets of
$210.9 million, an increase of $25.8 million, or 13.9%, compared to
total assets of $185.1 million at June 30, 2010. The increase
in assets was comprised primarily of an increase in cash and cash
equivalents of $27.6 million, or 312.0% from $8.8 million at June
30, 2010 to $36.4 million at December 31, 2010, and an increase in
loans receivable, net, excluding loans-held-for sale, of $18.1
million, or 19.5%, from $93.1 million at June 30, 2010, to $111.2
million at December 31, 2010, primarily reflecting the continuing
increase in commercial lending during the three months ended
December 31, 2010. This was partially offset by a decrease in
investment securities of $12.9 million, or 19.6%, to $52.9 million
at December 31, 2010, compared to $65.8 million at June 30,
2010. Loans held-for-sale decreased $7.9 million, or 59.3%, to
$5.5 million at December 31, 2010 compared to $13.4 million at June
30, 2010, which management attributes to normal seasonal declines
in real estate sales. Deposits increased $15.3 million, or
13.0%, to $133.0 million at December 31, 2010, compared to $117.7
million at June 30, 2010. Advances from the Federal Home Loan
Bank of Dallas decreased $5.5 million, or 17.5%, to $26.0 million
at December 31, 2010, from $31.5 million at June 30, 2010. At
December 31, 2010, the Company had $113,000 of non-performing
assets, or 0.05% of total assets at such date, compared to
$360,000, or 0.19% of total assets at June 30, 2010.
Shareholders' equity increased $17.2 million, or 51.6%, to
$50.6 million at December 31, 2010, from $33.4 million at June 30,
2010. The primary reasons for the increase in shareholders'
equity from June 30, 2010, were the vesting of restricted stock
awards totaling $155,000, net income of $1.1 million for the six
months ended December 31, 2010, and proceeds from a common stock
issuance of $17.1 million. This was partially offset by a
decrease in the Company's accumulated other comprehensive income of
$998,000, dividends paid of $145,000 and treasury stock
acquisitions of $46,000 during the six months ended December 31,
2010.
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) |
|
|
|
ASSETS |
December 31,
2010 |
June 30, 2010 |
|
(Unaudited) |
Cash and cash equivalents |
$36,406 |
$8,837 |
Investment securities |
52,948 |
65,826 |
Loans held-for-sale |
5,451 |
13,403 |
Loans receivable, net |
111,196 |
93,056 |
Other assets |
4,942 |
4,023 |
|
|
|
Total assets |
$210,943 |
$185,145 |
|
|
|
LIABILITIES AND SHAREHOLDERS'
EQUITY |
|
|
|
|
|
Deposits |
$132,979 |
$117,722 |
Advances from the Federal Home Loan Bank of
Dallas |
25,981 |
31,507 |
Other liabilities |
1,399 |
2,551 |
|
|
|
Total liabilities |
160,359 |
151,780 |
|
|
|
Shareholders' equity |
50,584 |
33,365 |
|
|
|
Total liabilities and shareholders'
equity |
$210,943 |
$185,145 |
|
|
Home Federal Bancorp,
Inc. of Louisiana |
CONDENSED CONSOLIDATED
STATEMENTS OF INCOME |
(In thousands, except per share
data) |
|
|
|
|
|
|
Three months
ended December 31, |
Six months ended
December 31, |
|
2010 |
2009 |
2010 |
2009 |
|
(Unaudited) |
(Unaudited) |
|
|
|
|
|
Total interest income |
$2,544 |
$2,235 |
$5,081 |
$4,425 |
Total interest expense |
804 |
868 |
1,635 |
1,777 |
Net interest income |
1,740 |
1,367 |
3,446 |
2,648 |
Provision for loan losses |
151 |
-- |
223 |
-- |
Net interest income after provision
for loan losses |
1,589 |
1,367 |
3,223 |
2,648 |
Non-interest income |
780 |
285 |
1,614 |
339 |
Non-interest expense |
1,610 |
1,275 |
3,100 |
2,228 |
Income before income taxes |
759 |
377 |
1,737 |
759 |
Income taxes |
257 |
128 |
589 |
258 |
|
|
|
|
|
NET INCOME |
$ 502 |
$ 249 |
$ 1,148 |
$ 501 |
|
|
|
|
|
EARNINGS PER SHARE(1) |
|
|
|
|
Basic |
$0.17 |
$0.08 |
$0.39 |
$0.17 |
Diluted |
$0.17 |
$0.08 |
$0.39 |
$0.17 |
|
|
|
|
|
(1) Prior period amounts were
adjusted for comparability using the conversion ratio of 0.9110 due
to completion of the second step offering on December 22,
2010. |
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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