Exhibit 99.1
 
Home Federal's logo
 
 
FOR RELEASE: Thursday, July 26, 2012 at 04:30 PM (Eastern)
 
HOME FEDERAL BANCORP, INC. OF LOUISIANA REPORTS RESULTS OF OPERATIONS
FOR THE QUARTER AND YEAR ENDED JUNE 30, 2012

Shreveport, La., July 26, 2012 – 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 June 30, 2012 of $773,000, an increase of $295,000 compared to net income of $478,000 reported for the three months ended June 30, 2011. The Company’s basic and diluted earnings per share were $0.29 and $0.28, respectively, for the quarter ended June 30, 2012, compared to basic and diluted earnings per share of $0.17 for the quarter ended June 30, 2011.

The Company reported net income of $2.8 million for the year ended June 30, 2012, an increase of $905,000 compared to $1.9 million for the year ended June 30, 2011. The Company’s basic and diluted earnings per share were $1.02 and $1.01, respectively, for the year ended June 30, 2012, compared to basic and diluted earnings per share of $0.67 for the year ended June 30, 2011.

The increase in net income for the three months ended June 30, 2012, resulted primarily from a $706,000, or 36.6%, increase in net interest income and a $268,000, or 45.8%, increase in non-interest income. These changes were partially offset by an increase of $321,000, or 18.3%, in non-interest expense, a $272,000 or 289.4% increase in the provision for loan losses and an $86,000, or 46.0%, increase in income tax expense. The increase in net interest income for the three months ended June 30, 2012, was due to an increase of $643,000, or 23.7%, in total interest income primarily as a result of an increase in volume of interest-earning assets, and a decrease of $63,000, or 8.1%, in aggregate interest expense on borrowings and deposits primarily due to an overall decrease in rates paid on interest-bearing liabilities.  The Company’s average interest rate spread was 3.76% for the three months ended June 30, 2012, compared to 3.11% for the prior year period. The Company’s net interest margin was 4.08% for the three months ended June 30, 2012, compared to 3.60% for the quarter ended June 30, 2011. The increase in average interest rate spread and net interest margin on a comparative quarterly basis was primarily the result of a higher average volume of interest earnings assets and a decrease of 52 basis points in average rate paid on interest-bearing liabilities for the quarter ended June 30, 2012 compared to the prior year period.

The increase in net income for the year ended June 30, 2012, resulted primarily from a $2.6 million, or 36.0%, increase in net interest income and a $694,000, or 26.4%, increase in non-interest income. These changes were partially offset by a $1.7 million, or 25.5%, increase in non-interest expense, a $189,000, or 20.1%, increase in income taxes and a $503,000, or 142.5%, increase in the provision for loan losses. Similar to the increase for the quarter ended June 30, 2012, the increase in net interest income for the year ended June 30, 2012 was primarily due to an increase in total interest income as a result of an increase in the volume of interest-earning assets and a decrease in interest expense on borrowings and deposits due to an overall decline in the average cost of funds.  The Company’s average interest rate spread was 3.62% for the year ended June 30, 2012, compared to 3.09% for the year ended June 30, 2011. The Company’s net interest margin was 4.00% for the year ended June 30, 2012, compared to 3.60% for the year ended June 30, 2011.  The increase in average interest rate spread and net-interest margin for the year ended June 30, 2012 compared to 2011 was primarily due to a $44.4 million increase in average balance of interest-earning assets and a decrease of 49 basis points in average rate paid on interest-bearing liabilities.
 
 
 
 

 
 
The following tables set forth the Company’s average balance 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
 
   
June 30, 2012
   
June 30, 2011
 
   
Average
Balance
   
Average
Yield/Rate
   
Average
Balance
   
Average
Yield/Rate
 
   
(Dollars in thousands)
 
Interest-earning assets:
                       
    Loans receivable                                                           
  $ 176,534       6.32 %   $ 127,135       6.63 %
    Investment securities                                                           
    69,248       3.25       80,442       2.98  
    Interest-earning deposits                                                           
    12,598       0.06        6,639       0.23  
        Total interest-earning assets                                                           
  $ 258,380       5.19 %   $ 214,216       5.06 %
                                 
Interest-bearing liabilities:
                               
    Savings accounts                                                           
  $ 6,842       0.64 %   $ 6,789       0.38 %
    NOW accounts                                                           
    16,641       0.72       14,072       0.71  
    Money market accounts                                                           
    47,199       0.40       30,706       0.90  
    Certificates of deposit                                                           
    106,561       1.93       82,487       2.35  
         Total interest-bearing deposits                                                           
    177,243       1.36       134,054       1.74  
    FHLB advances                                                           
    24,080       1.91       26,578       2.95  
                Total interest-bearing liabilities
  $ 201,323       1.43 %   $ 160,631       1.95 %
 
   
For the Year Ended
 
   
June 30, 2012
   
June 30, 2011
 
   
Average
Balance
   
Average
Yield/Rate
   
Average
Balance
   
Average
Yield/Rate
 
   
(Dollars in thousands)
 
Interest-earning assets:
                       
    Loans receivable                                                           
  $ 156,759       6.50 %   $ 115,505       6.62 %
    Investment securities                                                           
    76,310       3.31       67,024       3.92  
    Interest-earning deposits                                                           
    8,674       0.14       14,793       0.16  
        Total interest-earning assets                                                           
  $ 241,743       5.26 %   $ 197,322       5.22 %
                                 
Interest-bearing liabilities:
                               
    Savings accounts                                                           
  $ 6,600       0.59 %   $ 6,125       0.41 %
    NOW accounts                                                           
    16,854       0.71       10,384       0.63  
    Money market accounts                                                           
    39,044       0.55       27,542       0.94  
    Certificates of deposit                                                           
    97,838       2.13       78,971       2.44  
        Total interest-bearing deposits                                                           
    160,336       1.54       123,022       1.85  
    FHLB advances                                                           
    25,492       2.31       26,630       3.41  
                Total interest-bearing liabilities
  $ 185,828       1.64 %   $ 149,652       2.13 %

The $268,000 increase in non-interest income for the quarter ended June 30, 2012, compared to the prior year quarterly period was primarily due to an increase of $176,000 and $18,000, respectively, in gain on loans held for sale and gain on sale of investments, in addition to increases of $21,000 and $53,000, respectively, in income from bank owned life insurance and other non-interest income. The $694,000 increase in non-interest income for the year ended June 30, 2012, compared to the prior year period was primarily due to increases of $558,000 and $179,000, respectively, in gain on loans held for sale and income from bank owned life insurance, partially offset by decreases of $40,000, in gain on sale of investments and $3,000 in other non-interest income. The Company sells most of its fixed rate mortgage loan originations other than those loans selected for portfolio. The increases in non-interest expense for the quarter and year ended June 30, 2012 compared to 2011 were primarily due to increases in compensation and benefits expense of $287,000 and $1.0 million, respectively, due in part to increasing loan volume and related commissions to commercial and residential loan officers during fiscal 2012, as well as increases of $36,000 and $203,000, respectively, in occupancy and equipment expense, $8,000 and $26,000, respectively, in advertising expense, $12,000 and $112,000, respectively, in data processing costs, and $1,000 and $222,000, respectively, in legal expenses. The $366,000 provision for loan losses during the three months ended June 30, 2012, an increase of $272,000 over the prior year three month period, reflects the increase in loan loss allowances deemed necessary by management for risks associated with the increasing volume of non-residential and commercial loans. For the year ended June 30, 2012, the provision for loan losses increased $503,000 over the prior year period for a total provision of $856,000.

 
2

 
At June 30, 2012, the Company reported total assets of $296.2 million, an increase of $62.9 million, or 26.9%, compared to total assets of $233.3 million at June 30, 2011.  The increase in assets was comprised primarily of increases in net loans receivable of $42.9 million, or 34.2%, from $125.4 million at June 30, 2011, to $168.3 million at June 30, 2012, loans held-for-sale of $4.5 million, or 67.7%, from $6.7 million at June 30, 2011 to $11.2 million at June 30, 2012, and an increase in cash and cash equivalents of $25.3 million, from $9.6 million at June 30, 2011 to $34.9 million at June 30, 2012, partially offset by a decrease in investment securities of $11.0 million, or 13.6%, from $80.8 million at June 30, 2011 to $69.8 million at June 30, 2012. The increase in loans held-for-sale primarily reflects an increase in residential mortgage loan originations during the year ended June 30, 2012.  In addition, a slight increase at year end in receivables from financial institutions purchasing the Company’s loans held-for-sale contributed to this increase. The increase in cash and cash equivalents was due to a non-recurring deposit in the fourth quarter which had a balance of approximately $31.7 million at June 30, 2012.  The deposit was short-term in nature and has been withdrawn as of the date hereof.  The decrease in investment securities was due to sales and principal repayments during the year ended June 30, 2012.  During the quarter ended June 30, 2012, $3.6 million of mortgage-backed securities designated as held-to-maturity were transferred to the investment securities available for sale category in anticipation of their sale. The gross unrealized gains on these securities at June 30, 2012 were $155,000.

The following table shows total loans originated and sold during the periods indicated. . Included in the $39.6 million of construction loan originations for the year ended June 30, 2012 are approximately $27.1 million of one-to-four-family residential construction loans and $12.5 million of commercial and multi-family construction loans.
 
     
Year Ended
June 30,
         
      2012        2011        % Change
Loan originations:     (In thousands)        
   One- to four-family residential
  $ 163,326     $ 122,981       32.8 %
   Commercial — real estate secured (owner occupied and non-owner occupied)
    13,195       20,575       (35.9 )%
   Multi-family residential
    4,751       3,964       19.9 %
   Commercial business
    14,145       14,034       0.8 %
   Land
    7,596       6,400       18.7 %
   Construction
    39,608       15,367       157.7 %
   Home equity loans and lines of credit and other consumer
    9,309       10,688       (12.9 )%
        Total loan originations
    251,930       194,009       29.9 %
Loans sold
    (119,969 )     (116,503 )     3.0 %

Total deposits increased $67.8 million, or 44.1%, to $221.4 million at June 30, 2012, compared to $153.6 million at June 30, 2011. During the quarter ended March 31, 2012, the Company began to utilize brokered certificates of deposit as a component of its strategy for lowering Home Federal Bank’s overall cost of funds. The brokered certificates of deposit are callable by Home Federal Bank after twelve months. At June 30, 2012, the Company had $10.4 million in brokered deposits. Advances from the Federal Home Loan Bank of Dallas decreased $3.4 million, or 12.7%, to $23.5 million at June 30, 2012, from $26.9 million at June 30, 2011.  At June 30, 2012, the Company had $14,000 of non-performing assets compared to $114,000 of non-performing assets, or 0.05% of total assets, at June 30, 2011, consisting of single-family residential loans at both periods.

 
3

 
Shareholders’ equity decreased $1.3 million, or 2.5%, to $49.9 million at June 30, 2012, from $51.2 million at June 30, 2011.  The primary reasons for the decrease in shareholders’ equity from June 30, 2011, were the acquisition of treasury stock of $2.7 million, the acquisition of common stock for the company’s recognition and retention plan trust in the amount of $1.1 million, dividends paid of $727,000 and a decrease in the Company’s accumulated other comprehensive income of $54,000. These decreases in shareholders’ equity were partially offset by net income of $2.8 million for the year ended June 30, 2012, proceeds from the issuance of common stock from the exercise of stock options of $201,000 and the vesting of restricted stock awards, stock options and release of employee stock ownership plan shares totaling $242,000.

The Company repurchased 93,895 shares of its common stock during the fourth quarter of 2012 at an average price per share of $14.73 under the share repurchase program announced in February 2012. The repurchase program covered up to 305,000 shares, or approximately 10%, of the Company’s outstanding common stock. As of June 30, 2012, there were 125,949 shares remaining for repurchase under the program.

Home Federal Bancorp, Inc. of Louisiana is the holding company for Home Federal Bank which conducts business from its four full-service banking offices and one agency 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.

Home Federal Bancorp, Inc. of Louisiana
 
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
 
(In thousands)
 
 
    June 30,  
     2012      2011  
ASSETS    (Unaudited)  
             
Cash and cash equivalents
  $ 34,863     $ 9,599  
Securities available for sale at fair value
    68,426       75,039  
Securities held to maturity (fair value June 30, 2012: $1,381;
      June 30, 2011: $5,638)
    1,381       5,725  
Loans held-for-sale
    11,157       6,653  
Loans receivable, net of allowance for loan losses
     (June 30, 2012: $1,698; June 30, 2011: $842)
    168,263       125,371  
Other assets
    12,093       10,933  
                 
Total assets
  $ 296,183     $ 233,320  
                 
LIABILITIES AND SHAREHOLDERS’ EQUITY
               
                 
Deposits
  $ 221,436     $ 153,616  
Advances from the Federal Home Loan Bank of Dallas
    23,469       26,891  
Other liabilities
    1,390       1,630  
                 
Total liabilities
    246,295       182,137  
                 
Shareholders’ equity
    49,888       51,183  
                 
Total liabilities and shareholders’ equity
  $ 296,183     $ 233,320  
 
 
 
4

 
 
Home Federal Bancorp, Inc. of Louisiana
 
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
 
(In thousands, except per share data)
 
 
    Three Months Ended     Year Ended  
    June 30,     June 30,  
     2012      2011      2012      2011  
    (Unaudited)     (Unaudited)  
Interest income
                       
     Loans, including fees
  $ 2,788     $ 2,108     $ 10,181     $ 7,647  
     Mortgage-backed securities
    563       598       2,433       2,474  
     Other interest-earning assets
    2       4       108       176  
          Total interest income
    3,353       2,710       12,722       10,297  
Interest expense
                               
     Deposits
    603       584       2,461       2,279  
     Federal Home Loan Bank borrowings
    115       197       589       907  
          Total interest expense
     718       781       3,050       3,186  
               Net interest income
    2,635       1,929       9,672       7,111  
Provision for loan losses
    366       94       856       353  
               Net interest income after provision for loan losses
    2,269       1,835       8,816       6,758  
                                 
Non-interest income
                               
     Gain on sale of loans
    589       413       2,353       1,795  
     Gain on sale of securities
    108       90       362       402  
     Income on Bank Owned Life Insurance
    47       26       205       26  
     Other income
    109       56       404       407  
                                 
                    Total non-interest income
    853       585       3,324       2,630  
                                 
Non-interest expense
                               
     Compensation and benefits
    1,328       1,041       5,086       4,068  
     Occupancy and equipment
    194       158       753       550  
     Franchise and bank shares tax
    87       89       318       248  
     Advertising
    75       67       282       256  
     Data processing
    100       88       345       233  
     Audit and examination fees
    49       60       266       257  
     Legal fees
    71       70       387       165  
     Loan and collection expense
    28       27       145       133  
     Deposit insurance premiums
    30       28       113       117  
     Other expenses
    114       127       475       485  
                                 
                    Total non-interest expense
    2,076       1,755       8,170       6,512  
                                 
     Income before income taxes
    1,046       665       3,970       2,876  
Provision for income tax expense
    273       187       1,127       938  
                                 
     NET INCOME
  $ 773     $ 478     $ 2,843     $ 1,938  
                                 
     EARNINGS PER SHARE
                               
          Basic
  $ 0.29     $ 0.17     $ 1.02     $ 0.67  
          Diluted
  $ 0.28     $ 0.17     $ 1.01     $ 0.67  
 
 
 
 
 
5

 
 
 
   
Three Months Ended
   
Year Ended
 
   
June 30,
   
June 30,
 
   
2012
   
2011
   
2012
   
2011
 
   
(Unaudited)
   
(Unaudited)
 
Selected Operating Ratios(1):
                       
     Average interest rate spread
    3.76 %     3.11 %     3.62 %     3.09 %
     Net interest margin
    4.08 %     3.60 %     4.00 %     3.60 %
     Return on average assets
    1.13 %     0.84 %     1.11 %     0.93 %
     Return on average equity
    6.19 %     3.81 %     5.62 %     4.47 %
                                 
Asset Quality Ratios(2):
                               
     Non-performing assets as a percent of total assets
    * %     0.05 %     * %     0.05 %
     Allowance for loan losses as a percent of non-performing
       loans
    12,128.57 %     738.60 %     12,128.57 %     738.60 %
     Allowance for loan losses as a percent of total loans
       receivable
    1.00 %     0.67 %     1.00 %     0.67 %
                                 
Per Share Data:
                               
     Shares outstanding at period end
    2,877,032       3,045,829       2,877,032       3,045,829  
     Weighted average shares outstanding:
                               
          Basic
    2,683,551       2,853,803       2,799,945       2,903,578  
          Diluted
    2,722,588       2,858,420       2,818,075       2,908,195  
     Tangible book value at period end
  $ 17.34     $ 16.80     $ 17.34     $ 16.80  
____________
*      Not meaningful
(1)      Ratios for the three month periods are annualized.
(2)      Asset quality ratios are end of period ratios.
 
CONTACT:
Daniel R. Herndon
President and Chief Executive Officer
James R. Barlow
Executive Vice President and Chief Operating Officer
(318) 222-1145

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
6

The following information was filed by Home Federal Bancorp, Inc. Of Louisiana (HFBL) on Thursday, July 26, 2012 as an 8K 2.02 statement, which is an earnings press release pertaining to results of operations and financial condition. It may be helpful to assess the quality of management by comparing the information in the press release to the information in the accompanying 10-K Annual Report statement of earnings and operation as management may choose to highlight particular information in the press release.

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