Home Federal Bancorp, Inc. of Louisiana Reports Results of Operations for the Quarter Ended September 30, 2012
SHREVEPORT, La., Oct 25, 2012 (Menafn - GlobeNewswire via COMTEX) --Home Federal Bancorp, Inc. of Louisiana (the "Company") 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,
--------------------------------------------
20122011
------------------------------------------
AverageAverageAverageAverage
BalanceYield/RateBalanceYield/Rate
--------------------------------------
(Dollars in thousands)
Interest-earning assets:
Loans receivable184,6286.16%134,5916.72%
Investment securities65,7443.0077,8973.12
Interest-earning deposits9,0970.2712,2320.16
--------------------------------------
Total interest-earning
assets259,4695.15%224,7205.12%
==========----------========----------
Interest-bearing liabilities:
Savings accounts6,7930.28% 7,0120.40%
NOW accounts18,4320.7914,8080.84
Money market accounts44,8240.5034,1930.76
Certificates of deposit107,5421.8488,9172.33
--------------------------------------
Total interest-bearing
deposits177,5911.34144,9301.71
FHLB advances23,1671.7324,2712.92
--------------------------------------
Total interest-bearing
liabilities 200,7581.38%169,2011.89%
==========----------========----------
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,
-------------------
20122011% Change
-------------------------
(In thousands)
Loan originations:
One- to four-family
residential46,43039,36517.95%
Commercial -- real estate
secured (owner occupied
and non-owner occupied)2,6811,050155.33%
Commercial business571959(40.46)%
Land1,3081,15413.34%
Construction9,5229,1084.55%
Home equity loans and lines
of credit and other
consumer1012,047
-----------------(95.07)%
Total loan originations60,61353,683
=================12.91%
Loans sold36,91528,650
=================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,
20122012
-------------------
ASSETS(Unaudited)
Cash and cash equivalents6,83534,863
Securities available for sale
at fair value65,57868,426
Securities held to maturity
(fair value September 30,
2012: 1,470; June 30, 2012:
1,381)1,4701,381
Loans held-for-sale9,15811,157
Loans receivable, net of
allowance for loan losses
(September 30, 2012: 1,809;
June 30, 2012: 1,698)174,839168,263
Other assets12,34912,093
-------------------
Total assets270,229296,183
===================
LIABILITIES AND SHAREHOLDERS'
EQUITY
Deposits193,158221,436
Advances from the Federal Home
Loan Bank of Dallas26,26423,469
Other liabilities1,9411,390
-------------------
Total liabilities221,363246,295
Shareholders' equity48,86649,888
-------------------
Total liabilities and
shareholders' equity270,229296,183
===================
Home Federal Bancorp, Inc. of Louisiana
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
Three Months Ended
September 30,
-------------------
20122011
-----------------
(Unaudited)
Interest income
Loans, including fees2,8412,262
Mortgage-backed securities485542
Other interest-earning assets1470
-----------------
Total interest income3,3402,874
-----------------
Interest expense
Deposits593621
Federal Home Loan Bank
borrowings100177
-----------------
Total interest expense693798
-----------------
Net interest income2,6472,076
Provision for loan losses11186
-----------------
Net interest income after
provision for loan losses2,5361,990
-----------------
Non-interest income
Gain on sale of loans682593
Gain on sale of securities95203
Income on Bank Owned Life
Insurance4956
Other income10592
-----------------
Total non-interest income931944
-----------------
Non-interest expense
Compensation and benefits1,3181,121
Occupancy and equipment206196
Franchise and bank shares tax8495
Advertising6060
Data processing8776
Audit and examination fees4850
Legal fees8876
Loan and collection expense4031
Deposit insurance premiums3125
Other expenses99123
-----------------
Total non-interest
expense2,0611,853
-----------------
Income before income taxes1,4061,081
Provision for income tax
expense467279
-----------------
NET INCOME 939802
=================
EARNINGS PER SHARE
Basic0.360.28
=================
Diluted0.350.28
=================
Three Months Ended
September 30,
----------------------
20122011
--------------------
(Unaudited)
Selected Operating Ratios(1):
Average interest rate spread3.77%3.23%
Net interest margin4.08%3.69%
Return on average assets1.37%1.34%
Return on average equity7.64%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 receivable1.02%0.72%
Per Share Data:
Shares outstanding at period end2,778,0193,051,881
Weighted average shares outstanding:
Basic2,594,0882,858,575
Diluted2,661,3342,886,549
Tangible book value at period end17.5917.14
(1) Ratios for the three month periods are annualized.
(2) Asset quality ratios are end of period ratios.
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SOURCE: Home Federal Bancorp, Inc. of Louisiana
(Logo:http://media.primezone.com/cache/12251/int/7734.jpg)
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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