Name: Home Federal Bancorp, Inc. of Louisiana Q2 2025 Earnings Call
Start: 2025-01-30T00:00:00.000Z

Executive Summary

Q2 FY2025 (quarter ended December 31, 2024) delivered net income of $1.02M and basic EPS of $0.33, flat year over year, with net interest income down 6.2% YoY offset by a strong rebound in non-interest income driven by smaller real estate losses .
Net interest margin improved sequentially to 3.12% from 2.98% in Q1, alongside a wider average interest rate spread (2.40% vs 2.23% in Q1), reflecting easing funding costs and mix shifts in deposits .
Deposit mix continued to rotate away from higher-cost CDs toward savings/NOW, with CDs down to $184.1M and savings up to $93.3M at Q2-end; total deposits declined to $546.5M, then recovered in Q3 .
Non-interest expenses decreased YoY; however, data processing expense rose and later spiked in Q3 due to a billing discrepancy settlement with the core processor, a watch item for Opex normalization .
No earnings call transcript was found for Q2, and S&P Global Wall Street consensus estimates were unavailable; stock narrative catalysts center on margin stabilization, deposit repricing, and Opex normalization .

What Went Well and What Went Wrong

Sequential margin improvement: NIM rose to 3.12% (from 2.98% in Q1) and spread to 2.40% (from 2.23%), signaling improved funding dynamics and mix .
Non-interest income rebounded YoY to $0.488M, primarily from a smaller loss on sale of real estate (only $(12)k in Q2 vs $(381)k YoY), plus better other income .
Deposit mix favorable: CDs fell to $184.1M while savings increased to $93.3M, pointing to lower-cost funding momentum; the bank carried no brokered deposits .
Management confidence on capital return later in FY: “This twelfth consecutive annual increase in our dividend rate… reflects a payout ratio of approximately 49.5%” (James R. Barlow, July 23, 2025) .

Net interest income declined YoY by $303k (6.2%), as total interest income fell $422k YoY despite modestly lower interest expense .
Data processing expense elevated: rose to $336k in Q2 and then surged to $553k in Q3 due to a legacy billing discrepancy settlement—pressuring Opex trajectory .
Loan growth muted with loans receivable at $458.7M in Q2 (down from $470.9M at June 30, 2024), and total deposits pulled back to $546.5M before recovering in Q3 .

Metric	Q1 2025 (Sep 30, 2024)	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)
Net Income ($USD Millions)	$0.941	$1.020	$0.748
Basic EPS ($USD)	$0.31	$0.33	$0.24
Total Interest Income ($USD Millions)	$7.741	$7.658	$7.425
Total Interest Expense ($USD Millions)	$3.314	$3.058	$2.751
Net Interest Income ($USD Millions)	$4.427	$4.600	$4.674
Net Interest Margin %	2.98%	3.12%	3.33%
Average Interest Rate Spread %	2.23%	2.40%	2.66%

No formal segment reporting.

KPI	Q1 2025 (Sep 30, 2024)	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)
Loans Receivable, Net ($USD Millions)	$454.039	$458.693	$458.301
Total Deposits ($USD Millions)	$564.560	$546.544	$556.763
Certificates of Deposit ($USD Millions)	$197.3	$184.1	$182.4
Savings Deposits ($USD Millions)	$85.8	$93.3	$96.0
Money Market Deposits ($USD Millions)	$79.6	$73.3	$79.9
NOW Accounts ($USD Millions)	$68.5	$67.4	$68.7
Non-interest Bearing Deposits ($USD Millions)	$133.293	$128.439	$129.799
Non-performing Assets (% of total assets)	0.31%	0.30%	0.49%
ACL (% total loans receivable)	1.03%	1.02%	1.00%

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly cash dividend per share	Q2 FY2025	$0.13 declared Oct 16, 2024	$0.13 declared Jan 15, 2025	Maintained

No revenue/margins/OpEx/tax/segment guidance provided in the quarter’s release .

No Q2 earnings call transcript was available (none found for Dec 1, 2024–Feb 28, 2025) [ListDocuments: earnings-call-transcript 0 results].

Topic	Previous Mentions (Q1 & Q3)	Current Period (Q2)	Trend
Net interest margin & spread	Q1: NIM 2.98%, spread 2.23% ; Q3: NIM 3.33%, spread 2.66%	NIM 3.12%, spread 2.40%	Improving sequentially
Deposit mix shift	Q1: CDs $197.3M, savings $85.8M ; Q3: CDs $182.4M, savings $96.0M	CDs $184.1M, savings $93.3M	Continued rotation to lower-cost funding
Non-interest income volatility (real estate)	Q1: total $300k; real estate loss $(254)k ; Q3: total $538k; real estate loss $(266)k	Total $488k; real estate loss $(12)k	Lumpy; Q2 improved vs Q1/Q3
Data processing expense	Q1: $219k ; Q3: $553k with billing discrepancy settlement noted	$336k	Elevated; normalization expected post-settlement
Asset quality	Q1 NPA 0.31% ; Q3 NPA 0.49%	NPA 0.30%	Stable in Q2; uptick by Q3

Margin dynamics: Management highlighted the YoY decline in net interest income in Q2 driven by lower total interest income and modestly lower interest expense; the average interest rate spread and NIM held up better sequentially than in Q1 .
Deposit strategy: Mix continues to improve—CDs declined while savings/NOW increased; no brokered deposits were outstanding at Q2-end .
Expense visibility: Non-interest expenses decreased YoY in Q2; later disclosures explain Q3 spikes tied to a core processor billing discrepancy settlement, which should not be recurring .
Capital return: “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” (James R. Barlow) .

No Q2 earnings call transcript available; therefore, no Q&A disclosure or clarifications to report [ListDocuments: earnings-call-transcript 0 results].

Wall Street consensus via S&P Global was unavailable at the time of writing; as a result, comparisons to consensus EPS or revenue estimates for Q2 FY2025 cannot be provided. Estimates coverage for HFBL appears limited; we will update if S&P Global data becomes accessible (unavailable at time of writing).

Sequential margin improvement (NIM 3.12%, spread 2.40%) and lower funding costs signal early stabilization; watch continued deposit repricing and mix shifts for sustained NIM expansion .
Non-interest income rebound in Q2 was driven by a much smaller real estate loss; expect continued lumpiness given episodic real estate dispositions .
Elevated data processing expense is a transient issue tied to a billing discrepancy; monitor normalization into subsequent quarters as settlement effects roll off .
Asset quality remained stable in Q2 (NPA 0.30%) but rose in Q3 (0.49%); maintain vigilance on NPA trajectory and coverage .
Deposit mix is improving (CDs down, savings/NOW up), supporting lower cost of funds; total deposits dipped in Q2 then recovered in Q3—funding stability will influence margin durability .
Capital return remained steady in Q2 with a $0.13 dividend; later dividend increase demonstrates management’s confidence and shareholder-friendly posture .
Without consensus estimates or a Q2 call, trading narrative hinges on observed trends: margin recovery, Opex normalization, and deposit/funding dynamics—positive momentum if execution persists and asset quality remains contained .