Home Federal Bancorp Louisiana Earnings Report: Profit Up 59%

The news: Home Federal Bancorp, Inc. of Louisiana (Nasdaq: HFBL), the Shreveport holding company for Home Federal Bank, filed its Form 10-K on September 25 for the fiscal year ended June 30, 2026. Net income was $6.174 million, up from $3.888 million, and diluted earnings per share were $2.02, compared with $1.26 a year earlier.

By the numbers:

• Net interest income: $21.789 million, up 16.7%
• Net interest margin: 3.72%, versus 3.23%
• Average interest rate spread: 3.07%, versus 2.55%
• Total assets: $643.3 million, up 5.6%
• Net loans: $475.5 million, up 3.1%
• Deposits: $577.3 million, up 5.7%
• Non-performing assets: $3.649 million, or 0.57% of total assets
• Book value per share: $19.31, versus $17.90

Why it matters: For a small bank, this earnings report reads as a margin story. Interest income rose $2.036 million to $32.498 million while interest expense fell $1.082 million to $10.709 million. The bank cited a higher yield on its loan book, which gained 31 basis points, and a lower average rate paid on certificates of deposit, 3.40% versus 3.92%. Non-interest income grew $667,000, or 33.3%, and non-interest expense slipped $66,000.

Two items worked against earnings. The provision for credit losses rose $720,000, which the company attributed to loan growth and added reserves on certain problem loans after updated valuation reports. Income tax expense also more than doubled, from $766,000 to $1.611 million.

The big picture: The loan mix is shifting toward commercial lending. Commercial real estate loans were $141.0 million, 29.3% of the portfolio, and commercial business loans were $58.9 million, or 12.3%. The company says it has sold much of its fixed-rate single-family mortgage production in recent periods. On the funding side, certificates of deposit grew $34.8 million, or 18.6%, to $222.1 million, while money market, NOW and savings balances declined. Non-interest-bearing deposits grew $15.6 million to $138.1 million.

Capital return continued. Stockholders’ equity increased 6.4% to $58.8 million after $3.333 million of stock repurchases and $1.663 million of dividends. The filing lists 3,030,594 shares outstanding as of September 21, 2026.

What’s next: Management says it would consider acquisitions of other financial institutions and banking businesses in contiguous areas of Caddo, Bossier and Webster Parishes, while saying it would not actively pursue them. For readers tracking small-bank results, the main variables to watch are the cost of deposits as more balances move into certificates and whether credit costs keep rising with loan growth.