Home Federal Bancorp(HFBL) - 2025 Q1 - Quarterly Results

Financial Performance - Net income for the three months ended September 30, 2024, was $941,000, a decrease from$ 1.2 million in the same period of 2023, resulting in earnings per share of $0.31 compared to$ 0.40 in 2023[1][2] - Net income for the three months ended September 30, 2024, was $941,000, compared to$ 1,220,000 for the same period in 2023, reflecting a decline of approximately 22.9%[18] - Return on average assets was 0.59% for the three months ended September 30, 2024, compared to 0.73% for the same period in 2023[20] - Return on average equity decreased to 7.23% for the three months ended September 30, 2024, down from 9.46% in the same period of 2023[20] Interest Income and Expenses - Net interest income decreased by $857,000, or 16.2%, due to an increase in total interest expense of$ 524,000, or 18.8%, and a decrease in total interest income of $333,000, or 4.1%[2] - The average interest rate spread was 2.23% for the three months ended September 30, 2024, down from 2.68% in the same period of 2023, with a net interest margin of 2.98% compared to 3.37% in 2023[2] - Net interest income after recovery of credit losses was$ 4,650,000 for the three months ended September 30, 2024, compared to $5,284,000 for the same period in 2023, a decline of approximately 11.9%[18] - The average interest rate spread decreased to 2.23% for the three months ended September 30, 2024, down from 2.68% in the same period of 2023[20] Assets and Liabilities - Total assets decreased by$ 9.1 million, or 1.4%, from $637.5 million at June 30, 2024, to$ 628.4 million at September 30, 2024, primarily due to a $16.9 million decrease in net loans receivable[7] - Total assets decreased to$ 628,404,000 as of September 30, 2024, down from $637,512,000 on June 30, 2024, representing a decline of approximately 1.7%[16] - Total liabilities decreased by$ 10.6 million, or 1.8%, from $584.7 million at June 30, 2024, to$ 574.1 million at September 30, 2024, with total deposits decreasing by $9.4 million, or 1.6%[8] - Total deposits decreased to$ 564,560,000 as of September 30, 2024, down from $574,007,000 on June 30, 2024, a decrease of about 1.8%[16] Non-Interest Income and Expenses - The company experienced a decrease in non-interest income of$ 134,000, or 30.9%, primarily due to an increase in loss on sale of real estate[5] - Non-interest income totaled $300,000 for the three months ended September 30, 2024, down from$ 434,000 in the same period of 2023, a decrease of about 30.9%[18] - Non-interest expense decreased by $177,000, or 4.2%, due to reductions in various expense categories, including advertising and compensation[6] Asset Quality - Non-performing assets decreased to$ 1.9 million at September 30, 2024, from $2.0 million at June 30, 2024[10] - Non-performing assets as a percentage of total assets increased to 0.31% as of September 30, 2024, compared to 0.28% as of September 30, 2023[20] - Allowance for credit losses as a percentage of non-performing loans decreased to 258.46% as of September 30, 2024, down from 403.96% in the same period of 2023[20] Shareholders' Equity - Shareholders' equity increased by$ 1.5 million, or 2.8%, from $52.8 million at June 30, 2024, to$ 54.3 million at September 30, 2024, driven by net income and other factors[11] Deposits - The company had no balances in brokered deposits at September 30, 2024, or June 30, 2024[8]