Exhibit 99.1
FOR IMMEDIATE RELEASE:
Home Federal Bancorp, Inc. of Louisiana Reports Net Earnings For the Quarter
and Nine Months Ended March 31, 2007.
Shreveport, Louisiana - May 2, 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 third quarter ended March 31, 2007 of $184,000, or basic earnings per
share of $.05, an increase of $43,000, or 30.5%, from the $141,000 in net
earnings, reported for the third quarter ended March 31, 2006.
The increase in net earnings for the quarter resulted primarily from a $66,000
increase in non-interest income which was offset by a $22,000, or 30.1%,
increase in income tax expense. The increase in non-interest income for the
quarter was primarily attributable to the recognition of $67,000 of gains on
sales of investments during the quarter. There were no gains on sales of
investments during the quarter ended March 31, 2006.
For the nine months ended March 31, 2007, the Company reported net earnings of
$516,000, or basic earnings per share of $0.15, an increase of $21,000, or 4.2%,
as compared to the $495,000 in net earnings, reported for the nine months ended
March 31, 2006. The increase in net earnings was primarily due to a $124,000,
or 119.2%, increase in non-interest income. The increase in non-interest
income was partially offset by a $47,000 decrease in net interest income, and
a $41,000 increase in non-interest expense for the nine months ended March 31,
2007 compared to the prior year period. 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 nine months ended March 31, 2007,
the Company recognized gains on the sale of investment securities of $168,000
compared to $52,000 for the nine months ended March 31, 2006. The decrease in
net interest income was attributable to an increase in the Company's cost of
funds. The increase in non-interest expense was primarily attributable to the
recognition by the Company of an aggregate of $97,000 of franchise and ad
valorem taxes associated with the equity of the Company and the Association,
respectively. These franchise and ad valorem taxes became applicable on
January 1, 2006. These increases were partially offset by decreases in legal
fees of $33,000, or 39.6%, and advertising expenses of $15,000, or 36.2%,
during the nine months ended March 31, 2007 compared to the prior year period.
At March 31, 2007, Home Federal Bancorp, Inc. of Louisiana reported total
assets of $122.7 million, an increase of $8.7 million, or 7.7%, compared to
total assets of $114.0 million at June 30, 2006. The increase in assets was
primarily due to the increase in cash and cash equivalents of $5.4 million, or
110.3%, to $10.4 million at March 31, 2007, compared to $4.9 million at June
30, 2006, as well as a $5.0 million, or 23.8%, increase in loans receivable at
March 31, 2007, compared to June 30, 2006. These increases were offset by a
decrease in other assets of $1.0 million, or 32.9%, from $3.1 million at June
30, 2006 to $2.1 million at March 31, 2007. Deposits increased $4.7 million,
or 6.6%, from $71.3 million at June 30, 2006, to $76.0 million at March 31,
2007. Advances from the Federal Home Loan Bank of Dallas increased $2.0
million, or 14.6%, from $13.4 million at June 30, 2006, to $15.4 million at
March 31, 2007.
Shareholders' equity increased $2.0 million to $30.6 million, or 24.9% of total
assets, at March 31, 2007 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 $516,000 of net income for the nine
months ended March 31, 2007, 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 ($1.1 million) at March 31, 2007, and a decrease
in unearned recognition and retention plan stock of $137,000. These changes
were offset by an increase of treasury stock of $509,000, and dividends paid
of $253,000 during the nine months ended March 31, 2007.
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)
March 31, June 30
ASSETS 2007 2006
----------- ---------
(Unaudited)
Cash and cash equivalents $ 10,370 $ 4,930
Investment securities 84,461 85,119
Loans receivable, net 25,832 20,866
Other assets 2,070 3,085
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Total assets $122,733 $114,000
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LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits $ 76,001 $ 71,279
Advances from the Federal Home Loan Bank of Dallas 15,372 13,417
Other liabilities 776 765
------- -------
Total liabilities 92,149 85,461
Shareholders' equity 30,584 28,539
------- -------
Total liabilities and shareholders' equity $122,733 $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 Nine months ended
March 31, March 31,
-------------------- -------------------
2007 2006 2007 2006
-------- -------- -------- --------
(Unaudited) (Unaudited)
Total interest income $1,689 $1,413 $4,899 $4,163
Total interest expense 897 619 2,531 1,748
----- ----- ----- -----
Net interest income 792 794 2,368 2,415
Provision for loan losses - - - -
----- ----- ----- -----
Net interest income after provision
for loan losses 792 794 2,368 2,415
Non-interest income 77 11 228 104
Non-interest expense 590 591 1,815 1,774
----- ----- ----- -----
Income before income taxes 279 214 781 745
Income taxes 95 73 265 250
----- ----- ----- -----
NET INCOME $ 184 $ 141 $ 516 $ 495
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EARNINGS PER SHARE
Basic $ .05 $ .04 $ .15 $ .15
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Diluted $ .05 $ .04 $ .15 $ .15
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