Home Federal (HFBL) Q2 EPS Jumps 81%
Key Points
Earnings per share (GAAP) rose to $0.38 for the three months ended June 30, 2025, up 81.0% from $0.21 a year earlier.
Net interest margin (GAAP) expanded to 3.52%, as funding costs dropped sharply.
Non-performing assets increased to 0.54% of total assets, while total assets and deposits declined.
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Home Federal Bancorp Of Louisiana (NASDAQ:HFBL), the community banking company serving northwest Louisiana, reported its financial results for the quarter ending June 30, 2025, on July 29, 2025. Net income for the three months ended June 30, 2025, was $1.2 million, compared to $638,000 a year earlier. Diluted earnings per share also jumped to $0.38 (GAAP). These gains reflect lower funding costs and improvements in non-interest income. The company’s net interest margin widened to 3.52 %, compared to 2.91 % for the same period a year ago. No analyst estimates were available, so no comparison to external expectations can be made. Overall, the quarter demonstrated strong profit improvement, but asset quality and deposit contraction remain important issues to watch.
| Metric | Q2 2025(Three Months Ended June 30, 2025) | Q2 2024(Three Months Ended June 30, 2024) | Y/Y Change |
|---|---|---|---|
| EPS – Diluted (GAAP) | $0.38 | $0.21 | 81.0 % |
| Net Income (GAAP) | $1.2 million | $0.6 million | 100.0 % |
| Net Interest Income (GAAP) | $5.0 million is not correct; the correct value is $4.97 million | $4.4 million | 13.0 % |
| Non-Interest Income | $0.7 million | $0.5 million | 40.0 % |
| Net Interest Margin | 3.52 % | 2.91 % | 0.61 pp |
| Book Value per Share | $17.66(June 30, 2025) | $16.80(June 30, 2024) | 5.1 % |
Company Overview and Strategic Focus
Home Federal Bancorp Of Louisiana is a community-focused bank serving Caddo, Bossier, and Webster Parishes. Its core business includes providing personal and business loans, deposit accounts, and related financial services. The primary sources of revenue are interest from loans and investment securities, as well as service fees and income from the sale of loans.
The company’s recent strategy has focused on managing funding costs, adjusting its deposit mix, and maintaining credit quality. Asset quality and local economic strength also play significant roles in determining performance and stability.
Quarter Review: Financial and Operational Developments
Net interest income (GAAP) climbed 14.2% for the three months ended June 30, 2025, compared to a year earlier, driven by a decrease in funding costs. The average rate paid on interest-bearing deposits dropped to 2.48% for the three months ended June 30, 2025, down from 2.98% a year earlier. This reduction helped lift the net interest margin to 3.52%, compared to 2.91% a year earlier. The improvement stemmed from shrinking high-cost deposits, such as certificates of deposit, and increasing balances in lower-cost savings accounts.
Non-interest income, which includes fees and gains on the sale of loans, rose 34.2% to $0.7 million (GAAP). The increase was primarily attributable to a $122,000 gain on the sale of loans and higher service charges.
Operating expenses grew by 1.4% for the three months ended June 30, 2025, compared to a year earlier. This modest increase was mainly due to a $190,000 jump in data processing, a one-time event from settling an old billing discrepancy with the company’s core processor. Other costs, such as salaries, advertising, and professional fees, declined. For FY2025, however, non-interest expense (GAAP) fell by 1.7%, reflecting a continued focus on efficiency.
Non-performing assets increased to 0.54% of total assets for the three months ended June 30, 2025, from 0.31% a year earlier. Real estate owned increased by 132%, from $418,000 at June 30, 2024, to $970,000 at June 30, 2025. The company kept its allowance for credit losses steady at 0.96% of total loans. Only a minimal provision for loan losses was made.
Balance Sheet and Capital Metrics
Total assets (GAAP) declined by 4.4% to $609.5 million for the year ended June 30, 2025. Net loans receivable (GAAP) fell by 2.1% for FY2025, while total deposits dipped by 4.8% from June 30, 2024, to June 30, 2025. The decrease in certificates of deposit and money market accounts was notable. On the other hand, savings account balances posted a strong increase of 24.8% for the year ended June 30, 2025, helping reduce funding costs.
Stockholders’ equity rose 4.5% to $55.2 million for FY2025, while book value per share reached $17.66 at June 30, 2025, up from $16.80 at June 30, 2024. The company also repurchased $1.1 million in shares and paid $1.6 million in dividends during FY2025.
No new or pending regulatory matters were mentioned. The company reported no issues related to capital adequacy or compliance.
The quarter did not include any significant product launches, nor did it note material changes to the range of personal loans, business loans, or deposit account products.
Dividend and Capital Return
Total dividend payments for FY2025 reached $1.6 million. Share repurchases continued, with a total of $1.1 million in stock bought back during FY2025.
Looking Ahead
Management did not provide formal financial guidance for future quarters or for fiscal 2026. There were no comments on planned loan or asset growth, margin outlook, or expectations for deposit trends.
In the absence of guidance, investors should monitor ongoing asset quality, deposit gathering, and funding cost trends in coming quarters. Attention should also be given to competitive pressures in the local market, as well as further movements in non-performing assets.
Revenue and net income presented using U.S. generally accepted accounting principles (GAAP) unless otherwise noted.
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