Home Federal Bancorp, Inc. of Louisiana (HFBL)·Q1 2026 Earnings Summary

Executive Summary

• Q1 FY2026 delivered stronger profitability: diluted EPS $0.52 and net income $1.60M, up sharply from $0.31 and $0.94M in the prior-year quarter, driven by lower deposit costs, wider spread (2.99% vs 2.23%), and higher fee income .
• Net interest margin expanded 65 bps YoY to 3.63% as management reduced interest expense and maintained zero wholesale funding (no brokered deposits or FHLB advances) .
• Asset quality improved sequentially: NPAs fell to $2.23M (0.36% of assets) from $3.31M at 6/30/25, while coverage remained robust (ACL to NPLs 304%) .
• Capital returns increased: the quarterly dividend was raised to $0.135 and a new 14th repurchase program authorizing up to 100,000 shares was approved, reinforcing shareholder returns .
• Likely stock reaction catalysts: continued NIM expansion, deposit growth without wholesale funding, normalization of elevated data processing expense from a billing catch-up, and ongoing credit normalization .

What Went Well and What Went Wrong

What Went Well

• “65 basis point increase to net interest margin compared to the same period in 2024,” with spread up to 2.99% and NIM at 3.63%, reflecting lower deposit costs and stable asset yields .
• Net interest income rose 18.8% YoY and non-interest income more than doubled, helped by no repeat of a prior-year OREO loss and higher gain-on-sale and service charges .
• Book value per share rose to $18.46, aided by a $1.242M reduction in held-to-maturity unrealized losses (≈$0.40/share), improving capital metrics and tangible value per share .

What Went Wrong

• Provision for credit losses increased $266K YoY, primarily because the prior-year quarter had a $223K recovery driven by lower net loans—a tough comparison .
• Non-interest expense included a one-time-like uptick in data processing from a core processor billing discrepancy catch-up, elevating current-quarter expense run-rate .
• Asset quality modestly higher YoY on an NPA ratio basis (0.36% vs 0.31%), though improved sequentially from 0.54% in Q4 FY2025; substandard classifications remain a monitoring point .

Financial Results

Core P&L and Margins (oldest → newest)

Q1 FY2026 vs Prior Year and Prior Quarter

Key Balance Sheet & Asset Quality KPIs (end of period)

Notes: “Total operating revenue” is constructed from reported net interest income and total non-interest income from company filings.

Guidance Changes

Earnings Call Themes & Trends

No Q1 FY2026 earnings call transcript was available; themes below are synthesized from company press releases.

Management Commentary

• Management highlighted structural improvements: “65 basis point increase to net interest margin… zero dependency on wholesale funding – no brokered deposits or FHLB advances,” supporting earnings quality .
• Operating efficiency actions included resolving a core processor billing discrepancy, which raised data processing expense in the quarter but reflects settlement and normalized invoicing going forward .
• Capital return stance: “This twelfth consecutive annual increase in our dividend rate… reflects our continued commitment to creating value for our shareholders and confidence in the financial strength and long-term prospects for our Company,” said CEO James R. Barlow (on 7/23/25 dividend increase to $0.135) .

Q&A Highlights

• No earnings call transcript was available for Q1 FY2026; therefore, no Q&A to summarize. All clarifications above derive from the 8‑K press release and supporting releases .

Estimates Context

• S&P Global shows no Wall Street consensus for Q1 FY2026 EPS or revenue for HFBL; consequently, a beat/miss vs consensus cannot be determined for the quarter.*
• Context: The company’s “total operating revenue” of ~$5.91M and diluted EPS of $0.52 are based on reported NII and non-interest income and reported EPS in company filings .
  *Values retrieved from S&P Global.

Key Takeaways for Investors

• Earnings inflection: EPS rose to $0.52 on expanding NIM (3.63%) and lower funding costs, with no reliance on wholesale funding—supportive for near-term earnings durability .
• Revenue engine: Total operating revenue increased sequentially and YoY on higher NII and fees; watch for sustainability as deposit mix shifts and interest rate environment evolves .
• Expense normalization opportunity: Data processing expense was elevated due to a billing catch-up; normalization should benefit run-rate non-interest expense in coming quarters .
• Credit steady-to-better: NPAs improved sequentially to $2.23M (0.36% of assets), and ACL to NPLs rose to 304%; continue monitoring substandard classifications, but trends are favorable .
• Capital return supports valuation: Dividend increased to $0.135 and new buyback authorization for up to 100,000 shares—positive for total shareholder yield and downside support .
• Book value momentum: BVPS rose to $18.46 aided by AOCI improvement (HTM losses reduced by $1.24M), enhancing tangible value per share and capital flexibility .
• Near-term stock drivers: Pace of NIM expansion, deposit growth without wholesale funding, and evidence that elevated DP expense is one-off could act as catalysts for multiple and earnings revisions .

Sources

• Q1 FY2026 8‑K/Press Release (three months ended 9/30/25): financials, NIM, spread, expense and asset quality details .
• Q4 FY2025 8‑K/Press Release (three months and year ended 6/30/25): sequential comps and KPIs .
• Q3 FY2025 Press Release (three and nine months ended 3/31/25): trailing comps and expense commentary .
• Dividend and buyback press releases: $0.135 dividend and new 14th repurchase program (Oct 15, 2025); dividend increase announced July 23, 2025 .
• Prior dividend declared April 16, 2025 ($0.13) .