Home Federal Bancorp(HFBL) - 2024 Q3 - Quarterly Results

Financial Performance - Net income for the three months ended March 31, 2024, was $732,000, a decrease of 33.5% from$ 1.1 million for the same period in 2023[1] - Basic and diluted earnings per share for the three months ended March 31, 2024, were $0.24, down from$ 0.35 and $0.34 for the same period in 2023[1] - Net interest income decreased to$ 4.4 million for the three months ended March 31, 2024, compared to $5.5 million for the same period in 2023[22] - Total interest income rose to$ 7.9 million for the three months ended March 31, 2024, compared to $7.0 million for the same period in 2023[22] - Total non-interest income was$ 506,000 for the three months ended March 31, 2024, compared to $508,000 for the same period in 2023[22] - Non-interest expense decreased by$ 507,000, or 11.3%, for the three months ended March 31, 2024, primarily due to a decrease in professional fees[10] Asset and Liability Management - Total assets decreased by $17.9 million, or 2.7%, from$ 660.9 million at June 30, 2023, to $643.0 million at March 31, 2024[11] - Total liabilities decreased by$ 19.9 million, or 3.3%, from $610.4 million at June 30, 2023, to$ 590.5 million at March 31, 2024[12] - Total deposits decreased by $18.5 million, or 3.1%, from$ 597.4 million at June 30, 2023, to $578.9 million at March 31, 2024, primarily due to an estate settlement totaling$ 24.8 million[12] - Shareholders' equity increased by $2.0 million, or 4.0%, from$ 50.5 million at June 30, 2023, to $52.6 million at March 31, 2024, driven by current year net income of$ 3.0 million[14] Loan and Credit Quality - Total loans receivable, net increased by $9.8 million, or 2.0%, to$ 499.3 million at March 31, 2024, compared to $489.5 million at June 30, 2023[5] - Nonperforming assets totaled$ 2.4 million, or 0.37% of total assets at March 31, 2024, compared to $1.6 million, or 0.24% of total assets at June 30, 2023[5] - Non-performing assets increased to$ 2.4 million at March 31, 2024, from $1.6 million at June 30, 2023[13] - The allowance for credit losses (ACL) was$ 4.9 million as of March 31, 2024, with a ratio of ACL to gross loans of 0.97%[6] - Allowance for credit losses as a percent of non-performing loans was 203.11% in Q1 2024, slightly down from 208.49% in Q1 2023[23] Interest Rate Metrics - Net interest income decreased by $1.1 million, or 19.5%, for the three months ended March 31, 2024, primarily due to a 126.4% increase in total interest expense[3] - The average interest rate spread was 2.46% for the nine months ended March 31, 2024, down from 3.55% for the same period in 2023[5] - Average interest rate spread decreased to 2.16% in Q1 2024 from 3.15% in Q1 2023[23] - Net interest margin declined to 2.89% in Q1 2024 compared to 3.56% in Q1 2023[23] Shareholder Metrics - Book value per share increased to$ 16.71 at the end of Q1 2024, up from $16.05 in Q1 2023[23] - Shares outstanding at period end rose to 3,145,236 in Q1 2024 from 3,123,651 in Q1 2023[23] - Weighted average diluted shares outstanding decreased to 3,091,011 in Q1 2024 from 3,132,312 in Q1 2023[23] Transition and Methodology - The company transitioned to the CECL methodology for estimating credit losses after July 1, 2023[24]