Exhibit 99.1
FOR IMMEDIATE RELEASE:
Home Federal Bancorp, Inc. of Louisiana Reports Net Earnings For
the Quarter and Six Months Ended December 31, 2006
Shreveport, Louisiana - January 25, 2007 - 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, 2006 of $174,000, or basic earnings per share
of $.05, an increase of $18,000, or 11.5%, from the $156,000 in
net earnings, reported for the second quarter ended December 31,
2005.
The increase in net earnings for the quarter resulted primarily
from an $80,000, or 285.7%, increase in non-interest income which
was partially offset by a $31,000, or 5.2%, increase in non-
interest expense. The increase in non-interest income for the
quarter was primarily attributable to the recognition of $101,000
of gains on sales of investments during the quarter. The
increase in non-interest expense was primarily due to an increase
in compensation and benefits expense of $12,000, or 3.2%, over
the prior year period and the recognition of $39,000 of franchise
and ad valorem taxes associated with the equity of the Company
and the Association, respectively. These taxes were not
applicable during the three months ended December 31, 2005.
These increases were offset by a decrease in advertising expense
of $14,000 as the Company did not recognize any advertising
expense for the three months ended December 31, 2006.
For the six months ended December 31, 2006, Home Federal Bancorp,
Inc. of Louisiana reported net earnings of $332,000, or basic
earnings per share of $0.10, a decrease of $22,000, or 6.2%, as
compared to the $354,000 in net earnings, reported for the six
months ended December 31, 2005. The decrease in net earnings for
the six months ended December 31, 2006 was primarily due to a
$45,000, or 2.8%, decrease in net interest income, and a $41,000,
or 3.5% increase in non-interest expense. These changes were
partially offset by a $58,000, or 62.4%, increase in non-interest
income. The decrease in net interest income was primarily
attributable to an increase in the Company's cost of funds. The
increase in non-interest expense was primarily attributable to an
increase in compensation and benefits expense of $28,000, or
3.9%, and the recognition by the Company of $79,000 of franchise
and ad valorem taxes associated with the equity of the Company
and the Association, respectively. These franchise and ad
valorem taxes were not applicable during the six months ended
December 31, 2005. These increases were partially offset by
decreases in audit and other professional fees of $27,000, or
18%, advertising expense of $15,000, or 52.9%, and other
administrative expenses of $23,000, or 15.6%. The increase in
non-interest income was primarily attributable to an increase in
the amount of gains recognized on the sale of investment
securities. For the six months ended December 31, 2006, the
Company recognized gains on the sale of investment securities of
$101,000 compared to $52,000 for the six months ended December
31, 2005.
At December 31, 2006, Home Federal Bancorp, Inc. of Louisiana
reported total assets of $124.2 million, an increase of $10.2
million, or 8.9%, compared to total assets of $114.0 million at June
30, 2006. The increase in assets was comprised primarily of
the increase in cash and cash equivalents of $8.2 million to
$13.1 million at December 31, 2006 compared to $4.9 million at
June 30, 2006, as well as a $2.2 million, or 10.6%, increase in
loans receivable at December 31, 2006 compared to June 30, 2006.
These increases were offset by a decrease in other assets of $1.0
million, or 33.0%, from $3.1 million at June 30, 2006 to $2.1
million at December 31, 2006. Deposits increased $5.0 million,
or 7.0%, from $71.3 million at June 30, 2006 to $76.3 million at
December 31, 2006. Advances from the Federal Home Loan Bank of
Dallas increased $3.0 million, or 22.0%, from $13.4 million at
June 30, 2006, to $16.4 million at December 31, 2006.
Shareholders' equity increased $2.4 million to $30.9 million, or
24.9% of total assets, at December 31, 2006 compared to $28.5
million, or 25.0% of total assets, at June 30, 2006. The primary
reasons for the increase in shareholders' equity from June 30,
2006, were recognition of $332,000 of net income for the six
months ended December 31, 2006, a change in the Company's
accumulated other comprehensive income (loss), increasing from a
balance of ($3.1 million) at June 30, 2006 to a balance of ($1.0
million) at December 31, 2006, and a decrease in unearned
recognition and retention plan stock of $137,000. These changes
were offset by an increase of treasury stock of $54,000, and
dividends paid of $169,000 during the six months ended December
31, 2006.
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.
CONTACT:
Daniel R. Herndon, Chief Executive Officer
Clyde D. Patterson, Executive Vice President
Home Federal Bancorp, Inc. of Louisiana
(318) 222-1145
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Home Federal Bancorp, Inc. of Louisiana
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)
ASSETS December 31, June 30,
2006 2006
------------ --------
(Unaudited)
Cash and cash equivalents $ 13,110 $ 4,930
Investment securities 85,939 85,119
Loans receivable, net 23,070 20,866
Other assets 2,068 3,085
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Total assets $124,187 $114,000
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 76,273 $ 71,279
Advances from the Federal Home Loan Bank of Dallas 16,366 13,417
Other liabilities 615 765
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Total liabilities 93,254 85,461
Shareholders' equity 30,933 28,539
------- -------
Total liabilities and shareholders' equity $124,187 $114,000
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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,
------------------ -----------------
2006 2005 2006 2005
--------- ------- ------- --------
(Unaudited) (Unaudited)
Total interest income $1,642 $1,370 $3,210 $2,750
Total interest expense 863 576 1,634 1,129
----- ----- ----- -----
Net interest income 779 794 1,576 1,621
Provision for loan losses - - - -
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Net interest income after provision
for loan losses 779 794 1,576 1,621
Non-interest income 108 29 151 93
Non-interest expense 623 592 1,224 1,183
----- ----- ----- -----
Income before income taxes 264 231 503 531
Income taxes 90 75 171 177
----- ----- ----- -----
NET INCOME $ 174 $ 156 $ 332 $ 354
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EARNINGS PER SHARE
Basic $ .05 $ .05 $ .10 $ .10
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Diluted $ .05 $ .05 $ .10 $ .10
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