HF
Home Federal Bancorp, Inc. of Louisiana (HFBL)·Q3 2025 Earnings Summary
Executive Summary
- HFBL delivered strong calendar Q3 2025 (three months ended September 30, 2025) results: net income rose to $1.599M, basic/diluted EPS of $0.53/$0.52, with net interest margin expanding to 3.63% and spread to 2.99% .
- Versus prior quarter, EPS increased from $0.39/$0.38 and NIM rose from 3.52%; versus prior year, EPS increased from $0.31 and NIM from 2.98% as deposit costs fell and interest income grew .
- Non-interest income improved by $350K YoY on higher loan sale gains and service charges, while non-interest expense declined by $160K YoY despite elevated data processing from a resolved billing discrepancy; tax provision increased, and provision for credit losses rose due to a prior-year recovery base effect .
- Capital return remains a catalyst: quarterly dividend maintained at $0.135 and the fourteenth stock repurchase program authorizing up to 100,000 shares over four quarters was approved in October 2025 . The company reiterated zero reliance on wholesale funding (no brokered deposits or FHLB advances) .
What Went Well and What Went Wrong
What Went Well
- Material NIM expansion: net interest margin increased to 3.63% (from 3.52% in Q2 and 2.98% YoY), underpinned by lower deposit costs and modestly higher interest income .
- Diversified fee strength: non-interest income rose $350K YoY driven by loan sale gains (+$50K), higher service charges (+$32K), and absence of prior-year real estate sale loss (-$254K) .
- Capital deployment and shareholder returns: dividend of $0.135 declared; new buyback program for up to 100,000 shares over four quarters reflecting confidence in long-term prospects (“continued commitment to creating value”) .
What Went Wrong
- Higher tax burden and provision: tax expense increased by $420K YoY and provision for credit losses rose by $266K YoY, largely due to a prior-year recovery base effect .
- Data processing expense run-rate reset higher: a negotiated settlement resolved long-unbilled services, increasing data processing expense vs prior year; the quarter also reflected higher billed services going forward .
- Non-performing assets remain a watch item: while improving sequentially to $2.225M, NPAs as a percent of assets were 0.36% vs 0.31% YoY; allowance coverage improved to 304% .
Financial Results
KPIs
Deposit Mix and Funding
Estimates vs. Actual (S&P Global coverage limited)
Values with asterisk retrieved from S&P Global.
Guidance Changes
No formal revenue, margin, OpEx, or tax-rate guidance was issued in the reviewed materials .
Earnings Call Themes & Trends
No earnings call transcript was available for Q3 2025 in our dataset; key themes reflect press release commentary.
Management Commentary
- “This twelfth consecutive annual increase in our dividend rate, and 81st consecutive quarterly cash dividend, 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, Chairman, President & CEO .
Key strategic messages from press materials:
- Emphasis on conservative funding and liquidity with zero wholesale funding reliance at quarter-end .
- Focus on margin recovery via lower deposit costs and stable earning asset yields .
- Operational normalization in data processing expense after resolving vendor billing issues; negotiated discounted settlement .
Q&A Highlights
- No earnings call transcript was found; no Q&A details or clarifications were available in the reviewed documents .
Estimates Context
- Wall Street coverage appears limited for HFBL; EPS and target price consensus were not available in S&P Global for the period reviewed (Q3 2025)*.
- S&P Global shows Revenue (definition differs from GAAP line items) actual of $5,868K for Q3 2025; with no consensus provided, a beat/miss cannot be determined*.
- Given limited coverage, we anchor assessment on reported results and trajectory of NIM, deposit costs, and non-interest income per company disclosures .
Values with asterisk retrieved from S&P Global.
Key Takeaways for Investors
- Margin recovery is intact: NIM expanded to 3.63% while spread improved to 2.99%; deposit costs continue to ease, supporting earnings power .
- Earnings momentum: EPS rose to $0.53/$0.52 with net income of $1.599M; both QoQ and YoY comparisons favorable given lower interest expense and higher fee income .
- Credit quality improving sequentially: NPAs declined to $2.225M and coverage strengthened (ACL/NPL 304%); monitor mix of substandard exposures .
- Operating expense discipline: Non-interest expense fell YoY despite normalized data processing charges post vendor settlement; watch data processing run-rate going forward .
- Capital return catalysts: quarterly dividend maintained at $0.135 and new buyback program (up to 100,000 shares) provide support; these actions can underpin valuation and trading interest .
- Conservative funding profile: no brokered deposits or FHLB advances—favorable in a volatile rate backdrop and a differentiator among small-cap banks .
- With limited Street estimate coverage, narrative-driven catalysts (margin expansion, buybacks/dividends, asset quality) are likely to drive stock reaction near-term; a further drop in deposit costs or sustained NIM could be upside levers .