Exhibit 99.1
Home Federal Bancorp, Inc. of Louisiana
624 Market Street
Shreveport, Louisiana 71101
February 7, 2008
FOR IMMEDIATE RELEASE:
CONTACT:
Daniel R. Herndon, Chief Executive Officer
Clyde D. Patterson, Executive Vice President
Home Federal Bancorp, Inc. of Louisiana
(318) 222-1145
Home Federal Bancorp, Inc. of Louisiana Reports Net Earnings For the Quarter and Six Months Ended December 31, 2007.
Shreveport, Louisiana – Home Federal Bancorp, Inc. of Louisiana (the “Company”) (OTC BB: HFBL), the “mid-tier” holding company of Home Federal Savings and Loan Association (the “Association”), reported net earnings for the second quarter ended December 31, 2007 of $151,000, or basic earnings per share of $.05, a decrease of $23,000, or 13.2%, from the $174,000 in net earnings, reported for the second quarter ended December 31, 2007.
The decrease in net earnings for the quarter resulted primarily from a $14,000, or 1.8%, decrease in net interest income, a $12,000, or 12.8%, decrease in non-interest income and a $10,000, or 1.6%, increase in non-interest expense. These changes were partially offset by a $13,000, or 14.6%, decrease in income taxes. The decrease in net interest income for the quarter was primarily due to the increase in the Company’s cost of funds. The decrease in non-interest income was primarily due to a decrease of $29,000, or 28.7%, in gain on sale of investments. This decrease was partially offset by increases in other income and gain on sale of loans. The increase in non-interest expenses was primarily due to an increase in audit and professional fees of $22,000, or 31.9%, and an increase in compensation and benefits expense of $11,000, or 2.9%. These increases were partially offset by a decrease in other expenses.
For the six months ended December 31, 2007, Home Federal Bancorp, Inc. of Louisiana reported net earnings of $263,000, or basic earnings per share of $0.08, a decrease of $69,000, or 20.8%, as compared to the $332,000 in net earnings, reported for the six months ended December 31, 2006. The decrease in net earnings for the six months ended December 31, 2007 was primarily due to a $38,000, or 2.4%, decrease in net interest income, a $31,000, or 20.5%, decrease in non-interest income and a $37,000, or 3.0%, increase in non-interest expense. These changes were partially offset by a $37,000, or 21.6%, decrease in income taxes. The decrease in net interest income was primarily attributable to an increase in the Company’s cost of funds. The decrease in non-interest income was primarily due to a decrease in other income of $28,000, or 56.0%. The increase in non-interest expense was primarily attributable to an increase in compensation and benefits expense of $37,000, or 4.9%.
At December 31, 2007, Home Federal Bancorp, Inc. of Louisiana reported total assets of $128.1 million, an increase of $9.3 million, or 7.8%, compared to total assets of $118.8 million at June 30, 2007. The increase in assets was comprised primarily of the increase in cash and cash equivalents of $11.0 million, or 276.6%, to $15.0 million at December 31, 2007 compared to $4.0 million at June 30, 2007, and an increase in loans receivable of $2.1 million, or 7.7%. These increases were partially offset by a decrease in investment securities of $2.7 million, or 3.1%, and a decrease in other assets of $1.1 million, or 36.5%.
Total liabilities increased $6.6 million, or 7.3%, to $97.6 million at December 31, 2007 from $91.0 million at June 30, 2007. This increase is primarily due to an increase in deposits of $3.3 million, or 4.2%, and an increase in advances of $3.5 million, or 28.8%.
Shareholders' equity increased $2.6 million, or 9.5%, to $30.4 million, or 23.8% of total assets, at December 31, 2007 compared to $27.8 million, or 23.4% of total assets, at June 30, 2007. The primary reasons for the increase in shareholders’ equity were recognition of $263,000 of net income for the six months ended December 31, 2007, and a decrease in the Company’s accumulated other comprehensive loss of $2.3 million, or 82.2%.
Home Federal Bancorp, Inc. of Louisiana is the mid-tier thrift holding company for Home Federal Savings and Loan Association which conducts business from its main office and two branch offices 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) |
| ASSETS | | December 31, | | | June 30, | |
| | | 2007 | | | 2007 | |
| | | (Unaudited) | |
| | | | | | | |
| Cash and cash equivalents | | $ | 14,958 | | | $ | 3,972 | |
| Investment securities | | | 82,494 | | | | 85,160 | |
| Loans receivable, net | | | 28,751 | | | | 26,689 | |
Other assets | | | 1,881 | | | | 2,964 | |
Total assets | | $ | 128,084 | | | $ | 118,785 | |
| | | | | �� | | | | |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| | | | | | | | | |
| Deposits | | $ | 80,986 | | | $ | 77,710 | |
| Advances from the Federal Home Loan Bank of Dallas | | | 15,933 | | | | 12,368 | |
| Other liabilities | | | 724 | | | | 895 | |
| | | | | | | | | |
Total liabilities | | | 97,643 | | | | 90,973 | |
| | | | | | | | | |
| Shareholders’ equity | | | 30,441 | | | | 27,812 | |
| | | | | | | | | |
Total liabilities and shareholders’ equity | | $ | 128,084 | | | $ | 118,785 | |
| Home Federal Bancorp, Inc. of Louisiana | |
| CONDENSED CONSOLIDATED STATEMENTS OF INCOME | |
(In thousands, except share data) | |
| | | Three months ended | | | Six months ended | |
| | | | | | | | | | | | | |
| | | (Unaudited) | | | (Unaudited) | |
| | |
| Total interest income | | $ | 1,779 | | | $ | 1,656 | | | $ | 3,506 | | | $ | 3,211 | |
| Total interest expense | | | 1,001 | | | | 864 | | | | 1,967 | | | | 1,634 | |
Net interest income | | | 778 | | | | 792 | | | | 1,539 | | | | 1,577 | |
| Provision for loan losses | | | - | | | | - | | | | - | | | | - | |
Net interest income after provision for loan losses | | | 778 | | | | 792 | | | | 1,539 | | | | 1,577 | |
| Non-interest income | | | 82 | | | | 94 | | | | 120 | | | | 151 | |
| Non-interest expense | | | 633 | | | | 623 | | | | 1,262 | | | | 1,225 | |
Income before income taxes | | | 227 | | | | 263 | | | | 397 | | | | 503 | |
| Income taxes | | | 76 | | | | 89 | | | | 134 | | | | 171 | |
| | | | | | | | | | | | | | | | | |
NET INCOME | | $ | 151 | | | $ | 174 | | | $ | 263 | | | $ | 332 | |
| | | | | | | | | | | | | | | | | |
EARNINGS PER SHARE | | | | | | | | | | | | | | | | |
Basic | | $ | .05 | | | $ | .05 | | | $ | .08 | | | $ | .10 | |
Diluted | | $ | .05 | | | $ | .05 | | | $ | .08 | | | $ | .10 | |
| | | | | | | | | | | | | | | | | |
