Shreveport, Louisiana, Oct. 27, 2026 (GLOBE NEWSWIRE) -- Home Federal Bancorp, Inc. of Louisiana (the “Company”) (Nasdaq: HFBL), the holding company of Home Federal Bank, reported net income for the Three months ended September 30, 2026 of $1.911 million compared to net income of $1.599 million reported for the three months ended September 30, 2025. The Company’s basic and diluted earnings per share were $0.64 and $0.62, respectively, for the three months ended September 30, 2026 compared to $0.53 and $0.52, respectively, for the three months ended September 30, 2025.

The increase in net income for the three months ended September 30, 2026, as compared to the same period in 2025, resulted from an increase of $643,000, or 12.2%, in net interest income and an increase of $203,000, or 31.2%, in non-interest income, partially offset by an increase of $232,000, or 539.5%, in the provision for credit losses, an increase of $230,000, or 6.0%, in non-interest expense, and an increase of $72,000, or 17.2%, in the provision for income taxes. The increase in net interest income for the three months ended September 30, 2026, as compared to the same period in 2025, resulted from an increase of $687,000, or 8.6%, in total interest income, partially offset by an increase of $44,000, or 1.6%, in total interest expense. The Company’s average interest rate spread was 3.17% for the three months ended September 30, 2026, compared to 2.99% for the three months ended September 30, 2025. The Company’s net interest margin was 3.83% for the three months ended September 30, 2026, compared to 3.63% for the three months ended September 30, 2025.

The following table sets forth the Company’s average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.

  For the Three Months Ended September 30, 
  2026  2025 
  Average Balance  Average Yield/Rate  Average Balance  Average Yield/Rate 
  (Dollars in thousands) 
Interest-earning assets:                
 Loans receivable $478,475   6.42% $463,931   6.22%
 Investment securities  100,539   2.59   96,390   2.28 
 Interest-earning deposits  31,789   3.73   15,105   4.83 
    Total interest-earning assets $610,803   5.65% $575,426   5.52%
                 
Interest-bearing liabilities:                
 Savings accounts $89,940   1.43% $94,102   1.69%
 NOW accounts  63,072   1.08   65,801   1.13 
 Money market accounts  64,103   1.99   73,599   2.07 
 Certificate accounts  225,093   3.37   194,016   3.48 
   Total interest-bearing deposits  442,208   2.45   427,518   2.48 
 Other borrowings  3,556   6.92   4,000   7.54 
 FHLB advances  152   5.22   -   - 
    Total interest-bearing liabilities $445,916   2.48% $431,518   2.53%


The $203,000 increase in non-interest income for the three months ended September 30, 2026, compared to the same period in 2025, resulted from an increase of $204,000 in gain on sale of real estate, an increase of $46,000 in gain on sale of fixed assets, an increase of $12,000 in service charges on deposit accounts, and an increase of $1,000 in other non-interest income, partially offset by an increase of $52,000 in loss on sale of securities and a decrease of $8,000 in gain on sale of loans. The increase in gain on sale of real estate resulted from the bulk sale of 44 rental properties during the three months ended September 30, 2026.

The $230,000 increase in non-interest expense for the three months ended September 30, 2026, compared to the same period in 2025, resulted from increases of $138,000 in compensation and benefits, $100,000 in other real estate owned write-down expense, $76,000 in professional fees, $65,000 in audit and examination fees, $45,000 in advertising, and $11,000 in deposit insurance premium, partially offset by decreases of $100,000 in data processing, $46,000 in occupancy and equipment, $29,000 in franchise and bank shares tax, $17,000 in amortization of core deposit intangible, $9,000 in other expenses, and $4,000 in loan and collection. The $100,000 increase in other real estate owned write-down expense was related to the value of one large commercial property which was adjusted to reflect current market sentiment. 

Total assets increased $12.234 million, or 1.9%, from $643.330 million at June 30, 2026 to $655.564 million at September 30, 2026. The increase in assets resulted from increases in net loans receivable of $8.841 million, or 1.9%, from $475.491 million at June 30, 2026 to $484.332 million at September 30, 2026, cash and cash equivalents of $3.256 million, or 9.5%, from $34.304 million at June 30, 2026 to $37.560 million at September 30, 2026, investment securities of $656,000, or 0.7%, from $100.017 million at June 30, 2026 to $100.673 million at September 30, 2026, deferred tax asset of $432,000, or 40.8%, from $1.058 million at June 30, 2026 to $1.490 million at September 30, 2026, bank owned life insurance of $28,000, or 0.4%, from $7.040 million at June 30, 2026 to $7.068 million at September 30, 2026, and accrued interest receivable of $14,000, or 0.7%, from $1.895 million at June 30, 2026 to $1.909 million at September 30, 2026, partially offset by decreases in loans-held-for-sale of $572,000, or 34.6%, from $1.654 million at June 30, 2026 to $1.082 million at September 30, 2026, premises and equipment of $153,000, or 0.9%, from $16.173 million at June 30, 2026 to $16.020 million at September 30, 2026, other assets of $118,000, or 8.3%, from $1.420 million at June 30, 2026 to $1.302 million at September 30, 2026, real estate owned of $100,000, or 16.3%, from $613,000 at June 30, 2026 to $513,000 at September 30, 2026, and core deposit intangible of $50,000, or 7.4%, from $675,000 at June 30, 2026 to $625,000 at September 30, 2026. The increase in deferred tax asset was primarily due to the tax effect of increased unrealized losses on available-for-sale securities, which were attributable to changes in interest rates.

Total liabilities increased $12.236 million, or 2.1%, from $584.573 million at June 30, 2026 to $596.809 million at September 30, 2026. The increase in liabilities resulted from increases in advances from the Federal Home Loan Bank of Dallas of $14.000 million, from none at June 30, 2026 to $14.000 million at September 30, 2026, other accrued expenses and liabilities of $453,000, or 14.1%, from $3.214 million at June 30, 2026 to $3.667 million at September 30, 2026, and advances from borrowers for taxes and insurance of $152,000, or 29.7%, from $511,000 at June 30, 2026 to $663,000 at September 30, 2026, partially offset by a decrease in total deposits of $2.369 million, or 0.4%, from $577.292 million at June 30, 2026 to $574.923 million at September 30, 2026. The decrease in deposits resulted from decreases in money market deposits of $6.848 million, or 10.4%, from $65.978 million at June 30, 2026 to $59.130 million at September 30, 2026, savings deposits of $1.939 million, or 2.1%, from $91.205 million at June 30, 2026 to $89.266 million at September 30, 2026, and NOW accounts of $1.880 million, or 3.1%, from $59.937 million at June 30, 2026 to $58.057 million at September 30, 2026, partially offset by increases in certificates of deposit of $5.706 million, or 2.6%, from $222.113 million at June 30, 2026 to $227.819 million at September 30, 2026, and non-interest deposits of $2.592 million, or 1.9%, from $138.059 million at June 30, 2026 to $140.651 million at September 30, 2026.

At September 30, 2026, the Company had $1.556 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $3.649 million of non-performing assets at June 30, 2026, consisting of seven one-to-four family residential loans, two home equity loans, one commercial non-real estate loan, one commercial real estate loan, one commercial real estate property in other real estate owned, and two residential lots in other real estate owned at September 30, 2026, compared to sixteen one-to-four family residential loans, two home equity loans, one commercial non-real estate loan, one commercial real estate loan, one commercial real estate property in other real estate owned, and two residential lots in other real estate owned at June 30, 2026.  At September 30, 2026 the Company had nine one-to-four family residential loans, two home equity loans, one commercial non-real estate loan, one commercial real estate loan, and one consumer loan classified as substandard, compared to sixteen one-to-four family residential loans, two home equity loans, one commercial real estate loan, one commercial non-real estate loan, and one consumer loan classified as substandard at June 30, 2026.  There were no loans classified as doubtful at September 30, 2026 or June 30, 2026.

Stockholders’ equity decreased $2,000, from $58.757 million at June 30, 2026 to $58.755 million at September 30, 2026. The decrease in stockholders’ equity resulted from an increase in the Company’s accumulated other comprehensive loss of $1.271 million, dividends paid totaling $457,000, and stock repurchases of $346,000, partially offset by net income for the quarter ended September 30, 2026 of $1.911 million, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $125,000, and proceeds from the issuance of common stock from the exercise of stock options of $36,000.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its ten full-service banking offices and home office in northwest Louisiana.

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.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this press release, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, competition, changes in the quality or composition of the Company’s loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.
  

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED BALANCE SHEETS
(Dollar amounts in thousands except per share data)

   September 30, 2026   June 30, 2026 
   (Unaudited)     
Assets        
 Cash and cash equivalents (includes interest-bearing deposits with other banks of $30,954 and $28,135 at September 30, 2026 and June 30, 2026, respectively) $37,560  $34,304 
 Securities available-for-sale (amortized cost September 30, 2026: $49,465; June 30, 2026: $45,980, respectively)  45,499   43,624 
 Securities held-to-maturity (fair value September 30, 2026: $43,666; June 30, 2026: $46,658, respectively)  54,063   55,439 
 Other securities  1,111   954 
 Loans held-for-sale  1,082   1,654 
 Loans receivable, net of allowance for credit losses (September 30, 2026: $4,902; June 30, 2026: $4,926, respectively)  484,332   475,491 
 Accrued interest receivable  1,909   1,895 
 Premises and equipment, net  16,020   16,173 
 Bank owned life insurance  7,068   7,040 
 Goodwill  2,990   2,990 
 Core deposit intangible  625   675 
 Deferred tax asset  1,490   1,058 
 Real estate owned  513   613 
 Other assets  1,302   1,420 
    Total assets $655,564  $643,330 
         
Liabilities        
  Deposits:        
   Non-interest bearing $140,651  $138,059 
   Interest bearing  434,272   439,233 
    Total deposits  574,923   577,292 
 Advances from borrowers for taxes and insurance  663   511 
 Advances from the Federal Home Loan Bank of Dallas  14,000   - 
 Other borrowings  3,556   3,556 
 Other accrued expenses and liabilities  3,667   3,214 
    Total liabilities  596,809   584,573 
         
Stockholders' equity        
 Preferred stock - $0.01 par value; 10,000,000 shares authorized: none issued and outstanding  -   - 
 Common stock - $0.01 par value; 40,000,000 shares authorized: 3,030,594 and 3,042,451 shares issued and outstanding at September 30, 2026 and June 30, 2026, respectively  30   30 
 Additional paid-in capital  44,579   44,429 
 Unearned ESOP stock  (248)  (263)
 Retained earnings  17,527   16,423 
 Accumulated other comprehensive loss  (3,133)  (1,862)
    Total stockholders' equity  58,755   58,757 
         
      Total liabilities and stockholders' equity $655,564  $643,330 


HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollar amounts in thousands except per share data)
(Unaudited)

  Three Months Ended September 30, 
  2026  2025 
Interest income        
 Loans, including fees $7,741  $7,271 
 Investment securities  24   13 
 Mortgage-backed securities  633   542 
 Other interest-earning assets  299   184 
    Total interest income  8,697   8,010 
         
Interest expense        
 Deposits  2,729   2,673 
 Federal Home Loan Bank borrowings  2   - 
 Other bank borrowings  62   76 
    Total interest expense  2,793   2,749 
         
 Net interest income  5,904   5,261 
 Provision for (recovery of) credit losses  275   43 
    Net interest income after provision for credit losses  5,629   5,218 
         
Non-interest income        
 Gain on sale of real estate  204   - 
 Gain on sale of fixed assets  46   - 
 Gain on sale of loans  138   146 
 Loss on sale of securities  (52)  - 
 Income on bank owned life insurance  28   28 
 Service charges on deposit accounts  435   423 
 Other income  54   53 
    Total non-interest income  853   650 
         
Non-interest expense        
 Compensation and benefits  2,288   2,150 
 Occupancy and equipment  522   568 
 Data processing  236   336 
 Audit and examination fees  134   69 
 Franchise and bank shares tax  106   135 
 Advertising  74   29 
 Professional fees  161   85 
 Loan and collection  38   42 
 Amortization of core deposit intangible  50   67 
 Deposit insurance premium  104   93 
 Other real estate owned write-down expense  100   - 
 Other expenses  268   277 
    Total non-interest expense  4,081   3,851 
         
 Income before income taxes  2,401   2,017 
 Provision for income tax expense  490   418 
    Net income $1,911  $1,599 
         
Earnings Per Share        
 Basic $0.64  $0.53 
 Diluted $0.62  $0.52 


  For the Three Months Ended 
  September 30, 
  2026  2025 
Selected Operating Ratios: (1)        
 Average interest rate spread  3.17%  2.99%
 Net interest margin  3.83%  3.63%
 Return on average assets  1.17%  1.03%
 Return on average equity  12.71%  11.38%
         
Asset Quality Ratios: (2)        
 Non-performing assets as a percent of total assets  0.24%  0.36%
 Allowance for credit losses as a percentage of non-performing loans  470.04%  304.11%
 Allowance for credit losses as a percentage of total loans receivable  1.00%  0.94%
         
Per Share Data:         
 Shares outstanding at period end  3,030,594   3,066,369 
 Weighted average shares outstanding:        
 Basic  2,983,929   3,008,371 
 Diluted  3,068,337   3,048,626 
 Book value per share $19.39  $18.46 


         

(1)  Ratios for the three-month period are annualized.
(2)  Asset quality ratios are end of period ratios.

CONTACT: James R. Barlow
Chairman of the Board, President, and Chief Executive Officer
(318) 222-1145