Exhibit 99.1
Home Federal Bancorp, Inc. of Louisiana
624 Market Street
Shreveport, Louisiana 71101
February 1, 2006
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, 2005.
Shreveport, Louisiana - Home Federal Bancorp, Inc. of Louisiana (OTC BB: HFBL),
the "mid-tier" holding company of Home Federal Savings and Loan Association,
reported net earnings for the second quarter ended December 31, 2005 of
$156,000, or basic earnings per share of $.05, an increase of $26,000, or
20.0%, from the $130,000 in net earnings, reported for the second quarter
ended December 31, 2004.
The increase in net earnings for the quarter resulted primarily from a $91,000,
or 12.9%, increase in net interest income which was partially offset by a
$72,000, or 13.8%, increase in non-interest expense. The increase in
net-interest income for the quarter was primarily attributable to the higher
average yields on interest-earning assets compared to the prior year period.
The increase in non-interest expense was primarily due to an increase in
Compensation and Benefits expense of $37,000, or 11.0%, over the prior year
period and an increase in Audit and Other Professional Fees of $37,000, or
92.4%. The increase in Audit and Other Professional Fees was attributable
primarily to costs associated with the Company's preparation and filing of
its initial Form 10-KSB for the year ended June 30, 2005.
For the six months ended December 31, 2005, Home Federal Bancorp, Inc. of
Louisiana reported net earnings of $354,000, or basic earnings per share of
$0.10, an increase of $86,000, or 32.1%, as compared to the $268,000 in net
earnings, reported for the six months ended December 31, 2004. The increase
in net earnings for the six months ended December 31, 2005 was primarily due
to a $233,000, or 16.8%, increase in net interest income, which was partially
offset by a $177,000, or 17.6%, increase in non-interest expense. The increase
in net-interest income was attributable to higher average yields on interest-
earning assets and a decrease in the Company's cost of funds. The increase
in non-interest expense was primarily due to an increase in Compensation and
Benefits expense of $58,000, or 8.7%, over the prior year period and an
increase in Audit and Other Professional Fees of $86,000, or 131.0%, over the
prior year period. The increase in Audit and Other Professional Fees was
attributable primarily to costs incurred with the Company's preparation and
filing of its initial Form 10-KSB for the year ended June 30, 2005.
At December 31, 2005, Home Federal Bancorp, Inc. of Louisiana reported total
assets of $112.8 million, an increase of $1.5 million, or 1.3%, compared to
total assets at June 30, 2005. The increase in assets was comprised primarily
of the increase in cash and cash equivalents of $2.7 million to $12.0 million
at December 31, 2005 compared to $9.3 million at June 30, 2005, as well as a
$3.1 million, or 4.0%, increase in investment securities at December 31, 2005
compared to June 30, 2005. These increases were offset by a decrease in loans
receivable, net of $5.5 million, or 23.5%, from $23.6 million at June 30, 2005
to $18.1 million at December 31, 2005. Deposits increased $2.3 million, or
3.3%, from $70.0 million at June 30, 2005 to $72.3 million at December 31,
2005. Advances from the Federal Home Loan Bank of Dallas increased $1.7
million, or 20.2%, from $8.2 million at June 30, 2005, to $9.9 million at
December 31, 2005.
Shareholders' equity decreased $2.2 million to $30.2 million, or 26.8% of total
assets, at December 31, 2005 compared to $32.4 million, or 29.1% of total
assets, at June 30, 2005. The primary reasons for the decrease in shareholders'
equity from June 30, 2005, were a decrease in the Company's accumulated other
comprehensive income (loss) of $1.8 million, and the acquisition of 66,400
shares of the Company's stock at a cost of $654,000 for its Recognition and
Retention Plan, and dividends of $142,000 paid during the six months ended
December 31, 2005. These decreases in shareholders' equity were offset by
earnings of $354,000 for the six months ended December 31, 2005.
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,
2005 2005
------------- ----------
(Unaudited)
Cash and cash equivalents $ 11,988 $ 9,292
Investment Securities 80,467 77,373
Loans receivable 18,100 23,645
Other assets 2,215 1,019
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Total assets $ 112,770 $ 111,329
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 72,330 $ 69,995
Advances from the Federal Home Loan Bank of Dallas 9,882 8,224
Other liabilities 338 678
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Total liabilities $ 82,550 $ 78,898
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Shareholders' equity 30,220 32,431
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Total liabilities and shareholders' equity $ 112,770 $ 111,329
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Home Federal Bancorp, Inc. of Louisiana
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)
Three months ended Six months ended
December 31, December 31,
------------------ ----------------
2005 2004 2005 2004
------- -------- ------ -------
(Unaudited) (Unaudited)
Total interest income $1,371 $1,217 $2,750 $2,410
Total interest expense 576 513 1,129 1,022
------- -------- ------ -------
Net interest income 795 704 1,621 1,388
Provision for loan losses - - - -
------- -------- ------ -------
Net interest income after provision
for loan losses 795 704 1,621 1,388
Non-interest income 28 12 93 23
Non-interest expense 592 520 1,183 1,006
------- -------- ------ -------
Income before income taxes 231 196 531 405
Income taxes 75 66 177 137
------- -------- ------ -------
NET INCOME $ 156 $ 130 $ 354 $ 268
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EARNINGS PER SHARE
Basic $ .05 n/a $ .10 n/a
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Diluted $ .05 n/a $ .10 n/a
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