Executive Summary

Q4 2025 (three months ended June 30, 2025) net income rose to $1.181M ($0.39 basic EPS; $0.38 diluted) from $0.638M ($0.21) YoY and from $0.748M ($0.24) QoQ, driven by higher net interest income and stronger non-interest income .
Net interest margin expanded to 3.52% (vs. 2.91% YoY and 3.33% QoQ), and average interest rate spread improved to 2.89% (vs. 2.15% YoY and 2.66% QoQ), reflecting lower funding costs and mix shifts .
Non-interest income increased to $0.679M vs. $0.506M YoY and $0.538M QoQ on higher gain on sale of loans and service charges, partially offset by elevated data processing expense due to a legacy billing issue .
Capital return announcements around Q4: dividend increased to $0.135 per share (12th straight annual increase) and new 14th stock repurchase program (up to 100,000 shares over four quarters), which are supportive for sentiment and provide potential stock reaction catalysts .
No Wall Street consensus EPS estimates available for the quarter; S&P Global shows “Revenue” actual at $5.606M*, implying limited analyst coverage; estimate comparisons are constrained .

What Went Well and What Went Wrong

What Went Well

Margin expansion: NIM rose to 3.52% (vs. 2.91% YoY; 3.33% QoQ) and the spread improved to 2.89% (vs. 2.15% YoY; 2.66% QoQ), reflecting lower deposit costs and a favorable liability mix .
Earnings inflection: Net income of $1.181M (+85% YoY; +58% QoQ) on higher net interest income ($4.973M) and stronger non-interest income ($0.679M) .
Shareholder returns: Management raised the quarterly dividend to $0.135 (12th straight annual increase; about 49.5% payout on TTM through Mar-25) and authorized a new buyback (up to 100,000 shares over four quarters). Quote: “continued commitment to creating value for our shareholders and confidence in the financial strength…” — James R. Barlow .

What Went Wrong

Asset quality pressure: Non-performing assets increased to 0.54% of total assets vs. 0.31% YoY; allowance coverage of non-performing loans declined YoY to 191.99% from 228.70% .
Elevated operating costs in data processing due to historical billing discrepancy (invoices dating to Dec-2022); HFBL negotiated a discounted settlement, but it lifted the quarter’s run-rate in Q4 and prior periods .
Deposits declined YoY to $546.3M from $574.0M (June 30, 2024), reflecting lower certificates of deposit and money market balances, partly offset by higher savings; non-interest deposits also fell YoY .

Financial Results

Metric ($USD unless noted)	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)	Q4 2025 (Jun 30, 2025)
Total Interest Income ($M)	$7.658	$7.425	$7.638
Total Interest Expense ($M)	$3.058	$2.751	$2.665
Net Interest Income ($M)	$4.600	$4.674	$4.973
Provision for Credit Losses ($M)	$0.045	$0.006	$0.046
Non-Interest Income ($M)	$0.488	$0.538	$0.679
Non-Interest Expense ($M)	$3.836	$4.251	$4.051
Net Income ($M)	$1.020	$0.748	$1.181
EPS (Basic) ($)	$0.33	$0.24	$0.39
EPS (Diluted) ($)	$0.33	$0.24	$0.38
Net Interest Margin (%)	3.12%	3.33%	3.52%
Avg Interest Rate Spread (%)	2.40%	2.66%	2.89%
Return on Avg Assets (%)	0.65%	0.50%	0.78%
Return on Avg Equity (%)	7.76%	5.59%	8.64%

YoY comparison (Q4 2025 vs. Q4 2024):

Metric	Q4 2024	Q4 2025
Net Income ($M)	$0.638	$1.181
EPS (Basic) ($)	$0.21	$0.39
Net Interest Margin (%)	2.91%	3.52%
Avg Interest Rate Spread (%)	2.15%	2.89%
Non-Interest Income ($M)	$0.506	$0.679
Non-Interest Expense ($M)	$3.997	$4.051

KPIs and balance sheet (period-end):

KPI	Q2 2025 (Dec 31, 2024)	Q3 2025 (Mar 31, 2025)	Q4 2025 (Jun 30, 2025)
Total Assets ($M)	$607.763	$619.624	$609.492
Loans Receivable, net ($M)	$458.693	$458.301	$461.004
Total Deposits ($M)	$546.544	$556.763	$546.290
Non-Interest Bearing Deposits ($M)	$128.439	$129.799	$122.416
Interest-Bearing Deposits ($M)	$418.105	$426.964	$423.874
NPA / Total Assets (%)	0.30%	0.49%	0.54%
ACL / NPL Coverage (%)	260.70%	215.44%	191.99%
ACL / Total Loans (%)	1.02%	1.00%	0.96%

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Quarterly Cash Dividend	Q1 FY2026 declaration (Oct 15, 2025)	Not quantified in release	$0.135 per share payable Nov 10, 2025	Maintained vs Jul-25 declaration
Quarterly Cash Dividend	Q4 FY2025 declaration (Jul 23, 2025)	Not quantified in release	$0.135 per share payable Aug 18, 2025	Raised; 12th consecutive annual increase; ~49.5% payout on TTM through Mar-25
Stock Repurchase Program	Announced Oct 15, 2025	N/A	14th program: up to 100,000 shares over four quarters	Introduced

No formal forward guidance on revenue, margins, OpEx, OI&E, or tax rate was provided in company materials for Q4 2025 .

Earnings Call Themes & Trends

Note: No Q4 2025 earnings call transcript was available; themes synthesized from press releases across Q2–Q4.

Topic	Q2 2025 (Dec 2024)	Q3 2025 (Mar 2025)	Q4 2025 (Jun 2025)	Trend
Funding costs & margin	NIM 3.12%; spread 2.40%; lower interest expense YoY	NIM 3.33%; spread 2.66%; continued improvement	NIM 3.52%; spread 2.89%; further expansion	Improving
Deposit mix	Declines in CDs and money market; savings up; non-interest deposits down YoY	Similar pattern; savings and NOW up; CDs down	CDs down YoY; savings up YoY; non-interest deposits down YoY	Mixed; remix to lower-cost
Asset quality	NPA 0.30% of assets; strong coverage 260.70%	NPA 0.49%; coverage 215.44%	NPA 0.54%; coverage 191.99%	Deteriorating
Non-interest income	Recoveries from OREO losses; service charges steady	Modest gains; service charges up	Higher gain on sale of loans; service charges up	Improving
Operating expenses	Data processing up from billing issue; other categories down	Billing issue persists; data processing elevated; other reductions	Billing issue impact continues; negotiated discounted settlement	Normalizing post-settlement
Capital return	Regular dividend; share repurchases ongoing	Continued dividends; set stage for increase	Dividend increased; new repurchase program	Accretive to shareholder value

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. Based on our earnings for the trailing four fiscal quarters ended March 31, 2025, the increase reflects a payout ratio of approximately 49.5%.” — James R. Barlow, Chairman, President & CEO .
On operating expenses: the increase in data processing expense “resulted from a billing discrepancy with our core processor, which had failed to issue invoices for certain services dating back to December 2022. Upon discovery of the issue, we negotiated a discounted settlement…” .

Q&A Highlights

No Q4 2025 earnings call transcript was identified; therefore, Q&A highlights and any guidance clarifications are unavailable for this quarter [ListDocuments: earnings-call-transcript returned 0].

Estimates Context

Consensus EPS and revenue estimates for Q4 2025 were not available via S&P Global for HFBL (indicative of limited analyst coverage).
S&P Global “Revenue” actual recorded at $5.606M* for Q4 2025, while GAAP line items indicate total interest income of $7.638M and non-interest income of $0.679M (often, S&P “Revenue” for banks reflects net revenue constructs). With no published EPS or revenue consensus, there are no beat/miss determinations .
Implication: Post-quarter estimate revisions may be limited, but margin trajectory and capital return actions could inform future coverage and modeling assumptions.

Values retrieved from S&P Global.*

Key Takeaways for Investors

Margin trajectory remains favorable: sequential and YoY NIM expansion (3.52%) and spread improvement (2.89%) underscore progress on funding costs and earning asset yields .
Earnings momentum: Net income up strongly YoY/QoQ, supported by higher net interest income and stronger fee generation; watch for sustainability as deposit mix and rate environment evolve .
Asset quality bears monitoring: NPA ratio climbed to 0.54% with lower NPL coverage; maintain vigilance on consumer and CRE buckets highlighted in disclosures .
Operating expense normalization should improve forward run-rate: data processing billing issue was addressed via discounted settlement; expect clearer visibility into core expense trajectory .
Capital return is a near-term support: $0.135 dividend and new buyback program offer downside support and potential EPS accretion if executed opportunistically .
Limited Street coverage reduces estimate-driven volatility; narrative and capital actions likely drive stock reaction more than “beat/miss” headlines this quarter .
Medium-term thesis: continue tracking deposit remix, loan growth, asset quality trends, and incremental cost of funds as the rate cycle evolves; HFBL’s low wholesale dependency (no FHLB at 6/30/25) is constructive for funding resilience .

Home Federal Bancorp, Inc. of Louisiana (HFBL)·Q4 2025 Earnings Summary