Home Federal Bancorp(HFBL) - 2024 Q4 - Annual Report

Financial Performance - Home Federal Bancorp reported a net income of $3.6 million for fiscal 2024, down from$5.7 million in fiscal 2023, representing a decrease of approximately 36.8%[142]. - The net interest income decreased by $2.6 million to$19.0 million in fiscal 2024, compared to $21.6 million in fiscal 2023, reflecting a decline of about 12.0$31.9 million in fiscal 2024, up from $26.6 million in fiscal 2023, an increase of about 19.0$1.6 million, while total non-interest expense was $16.4 million for fiscal 2024[160]. - The provision for loan losses was$40, significantly lower than $868 in fiscal 2023, indicating a decrease of approximately 95.4$1.18 in 2024 from $1.89 in 2023, a drop of 37.5$3,632,000, down from $4,749,000 in 2023, a decrease of 23.5$637.5 million at June 30, 2024, from $660.9 million in 2023, a decline of approximately 3.5$25.7 million, or 4.2%, from $610.4 million at June 30, 2023, to$584.7 million at June 30, 2024[166]. - Shareholders' equity increased by $2.3 million, or 4.5$50.5 million at June 30, 2023, to $52.8 million at June 30, 2024[167]. - Cash and cash equivalents increased by$10.2 million, or 41.1%, from $24.8 million at June 30, 2023, to$34.9 million at June 30, 2024[165]. - Total deposits decreased from $597.4 million in June 30, 2023 to$574.0 million in June 30, 2024, a decline of about 3.9%[215]. Loan Portfolio and Credit Quality - As of June 30, 2024, commercial real estate loans amounted to $143.5 million, or 30.2$49.3 million, or 10.4% of the total loan portfolio[146]. - Net loans receivable decreased by $18.6 million, or 3.8$489.5 million at June 30, 2023, to $470.9 million at June 30, 2024[163]. - Non-performing assets totaled$2.0 million, or 0.31% of total assets, as of June 30, 2024[148]. - Non-performing loans as a percent of loans receivable increased to 0.32% from 0.25% year-over-year[161]. - The allowance for credit losses was $4.6 million, with a ratio of 0.96$5.2 million and 1.05% as of June 30, 2023[178]. - The company reported a total of $3,150,000 in special mention loans and$3,977,000 in substandard loans within the real estate loan category[287]. Interest Income and Expense - Total interest expense increased by $7.8 million, or 154.2$12.9 million for fiscal year 2024 compared to $5.1 million for fiscal year 2023[177]. - The average interest rate spread decreased from 3.37$12,913,000 in 2024, up from $5,079,000 in 2023, indicating increased borrowing costs[226]. Tax and Regulatory Compliance - The provision for income taxes was$476,000 for fiscal 2024, with an effective tax rate of 11.7%, down from $1.1 million and 15.7$27.0 million as of June 30, 2024, representing 4.24% of total assets, down from $39.6 million and 6.04$59.7 million in June 30, 2023 to $54.5 million in June 30, 2024, a decrease of approximately 8.7$39.55 million, with a significant portion attributed to mortgage-backed securities[271]. Operational Efficiency - Efficiency ratio increased to 79.99% from 67.71% year-over-year[161]. - Non-interest income decreased by $515,000, or 24.5$413,000 for the year ended June 30, 2024, driven by increases in compensation and benefits expense of $436,000 and audit fees of$235,000[181]. Future Outlook and Strategy - The company plans to continue emphasizing commercial lending to improve portfolio yield and expand its market presence through new banking offices and potential acquisitions[146][148]. - The Company has a diversified loan portfolio concentrated within a 100-mile radius of Shreveport, Louisiana, mitigating dependence on any particular economic sector[339].