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

Financial Performance - 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 22.93%[8]. - Basic earnings per share for the three months ended September 30, 2024, was $0.31, compared to$0.40 for the same period in 2023, a decrease of 22.5%[7]. - Net interest income after recovery of credit losses for the three months ended September 30, 2024, was $4,650,000, down from$5,284,000 for the same period in 2023, a decrease of about 11.99%[7]. - Total non-interest income for the three months ended September 30, 2024, was $300,000, down from$434,000 in the same period of 2023, a decrease of about 30.9%[7]. - The company reported a recovery of credit losses of $(223,000) for the three months ended September 30, 2024, compared to no recovery in the same period of 2023[7]. - The total comprehensive income for the three months ended September 30, 2024, included an unrealized loss on securities available-for-sale of$1,002,000[10]. - Other comprehensive income for the three months ended September 30, 2024, was $1,002,000, compared to a loss of$812,000 for the same period in 2023, indicating a significant improvement[8]. Assets and Liabilities - Total assets decreased from $637,512,000 on June 30, 2024, to$628,404,000 on September 30, 2024, representing a decline of approximately 1.7%[5]. - Total liabilities decreased from $584,709,000 on June 30, 2024, to$574,137,000 on September 30, 2024, a reduction of approximately 1.0%[5]. - Total stockholders' equity increased from $52,803,000 on June 30, 2024, to$54,267,000 on September 30, 2024, an increase of about 2.77%[5]. - Cash and cash equivalents at the end of the period rose to $41,044,000, compared to$8,878,000 at the end of the same period in 2023, indicating a significant increase of approximately 362%[12]. - Total deposits decreased from $574,007,000 on June 30, 2024, to$564,560,000 on September 30, 2024, a decline of approximately 1.3%[5]. Loan Portfolio - Total loans receivable decreased to $458.8 million from$475.5 million, representing a decline of approximately 3.5%[69]. - The net loans receivable after allowance for credit losses is $454.0 million, down from$470.9 million, indicating a reduction of about 3.6%[69]. - The total mortgage loans amount to $410.2 million, a decrease from$425.0 million, reflecting a decline of approximately 3.5%[69]. - The total risk-rated loans across all categories were $458.829 million, with a significant portion rated as pass at$447.121 million, demonstrating overall sound credit quality[81]. - The company reported no current period gross charge-offs across all loan categories, indicating effective risk management[78][79][80][81]. Credit Quality and Allowance for Credit Losses - The allowance for credit losses increased to $4.7 million from$4.6 million, showing a slight increase of about 2.8%[69]. - The company has maintained a strong credit quality with minimal special mention and substandard ratings across all loan categories, ensuring a robust financial position[78][80][81]. - The allowance for credit losses (ACL) is determined for two distinct categories of loans: collectively evaluated loans and individually evaluated loans[27]. - The ACL for loans is an estimate of expected losses to be realized over the life of the loans in the portfolio[27]. - The company reported recoveries of $352,000 for the three months ended September 30, 2024, compared to$13,000 for the same period in 2023, showing a significant increase[95]. Regulatory and Compliance - The Bank is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency[17]. - The Bank's common equity tier 1 capital ratio was 13.19% at September 30, 2024, exceeding minimum capital requirements[148]. - The Bank exceeded all capital requirements with common equity tier 1 and tier 1 capital ratios of 13.19% as of September 30, 2024[166]. Market and Investment - The company has off-balance sheet mortgage loan commitments totaling $13,644,000, with a fair value equal to the carrying amount[120]. - The fair value of loans receivable is estimated at$419,441,000, down from a carrying value of $454,039,000[120]. - The fair value of securities available-for-sale is$29,934,000, consistent with its carrying value[120]. - The company monitors its investment portfolio for unrealized losses to determine if any securities should be considered other than temporarily impaired[67].