Mon, Sep 30, 8:06 PM (81 days ago)
Home Federal Bancorp, Inc. of Louisiana reported a decrease in net income to $3.6 million for the fiscal year ending June 30, 2024, down from $5.7 million in 2023. The decline was attributed to a $2.6 million drop in net interest income, primarily due to increased interest expenses on deposits, which rose significantly by 154.2% to $12.9 million. Net interest margin fell from 3.73% to 3.08%. Total assets decreased by 3.5% to $637.5 million, with net loans receivable down 3.8% to $470.9 million. Deposits also fell by 3.9%, while shareholders' equity rose 4.5% to $52.8 million. The company adopted the current expected credit loss (CECL) model, resulting in an increase in the allowance for credit losses to $4.6 million. Non-performing assets rose to $1.9 million, representing 0.30% of total assets. The bank remains well-capitalized, exceeding all regulatory requirements with a common equity tier 1 ratio of 13.29%. Future strategies include diversifying the loan portfolio and enhancing commercial lending. The overall financial condition reflects a focus on maintaining asset quality amid a challenging interest rate environment.