(Source: Business Wire)
Home Federal Bancorp, Inc. of Louisiana (the "Company") (OTCBB:HFBL), the "mid-tier" holding company of Home Federal Bank, reported net income for the year ended June 30, 2009 of $515,000, or diluted earnings per share of $0.16, an increase of $597,000, as compared to the $82,000 in net loss reported for the year ended June 30, 2008. Net loss for the three months ended June 30, 2009 amounted to $6,000, a decrease of $451,000, or 98.7%, from the $457,000 in net loss reported for the three months ended June 30, 2008.
The increase in net income for fiscal 2009 resulted primarily from a $722,000, or 23.8%, increase in net interest income, a $245,000, or 7.3%, decrease in non-interest expense, and a $165,000, or 83.3%, increase in non-interest income. This was partially offset by a $295,000, or 702.4%, increase in income taxes for fiscal 2009, and a $240,000 provision for loan losses for the year ended June 30, 2009, as compared to none for the year ended June 30, 2008. Management determined to increase the provision for loan losses due to the increase in commercial lending activity during the quarter ended June 30, 2009 as well as the overall increase in net loans receivable which totaled $48.2 million at June 30, 2009 compared to $28.6 million at March 31, 2009, an increase of 68.9% over the prior quarter. The increase in net interest income was primarily attributable to a decrease in the Company's overall cost of funds. The decrease in non-interest expense was attributable to a decrease in conversion and merger expense of $750,000, or 84.9%, to $133,000 incurred in fiscal 2009, from $883,000 incurred in fiscal 2008 in connection with the Company's second-step conversion and acquisition of a local financial institution which terminated as of August 14, 2008. This decrease was partially offset by increases in salaries expense, occupancy expense, deposit insurance premiums, legal fees and other expense. The increase in non-interest income reflected primarily the increase in gains on the sales of investment securities during fiscal 2009 of $325,000, compared to gains on the sales of investment securities during fiscal 2008 of $149,000.
The decrease in net loss for the three months ended June 30, 2009, compared to the same period in 2008, was primarily due to a $520,000, or 34.8%, decrease in non-interest expense, a $216,000, or 27.4%, increase in net interest income, and a $174,000 increase in non-interest income which totaled $189,000 for the quarter ended June 30, 2009 compared to $15,000 for the same 2008 period. This was partially offset by a $240,000, or 100.0%, increase in provision for loan losses, and a $219,000, or 93.6%, increase in income taxes for the three months ended June 30, 2009, compared to the same period in 2008. The decrease in non-interest expense was primarily due to a decrease in conversion and merger expenses which totaled $883,000, in the quarter ended June 30, 2008, compared to none in the quarter ended June 30, 2009. This decrease was partially offset by increases in salaries expense, occupancy expense, deposit insurance premiums and other expense. For the quarter ended June 30, 2009, the Company incurred a special FDIC insurance assessment of $65,000 applicable to all FDIC-insured deposit institutions.
