Shreveport, Louisiana , April 26, 2024 (GLOBE NEWSWIRE) -- Home Federal Bancorp, Inc. of Louisiana (the "Company") (NASDAQ:HFBL), the holding company of Home Federal Bank, reported net income for the three months ended March 31, 2024, of $732,000 compared to net income of $1.1 million reported for the three months ended March 31, 2023. The Company's basic and diluted earnings per share were $0.24 for the three months ended March 31, 2024, compared to basic and diluted earnings per share of $0.35 and $0.34, respectively, for the three months ended March 31, 2023. The Company reported net income of $3.0 million for the nine months ended March 31, 2024, compared to $4.4 million for the nine months ended March 31, 2023. The Company's basic and diluted earnings per share were $0.97 and $0.95, respectively, for the nine months ended March 31, 2024 compared to $1.48 and $1.41, respectively, for the nine months ended March 31, 2023. The Company reported the following highlights during the nine months ended March 31, 2024: ●   Total loans receivable, net for the nine months ended March 31, 2024 increased $9.8 million, or 2.0%, to $499.3 million at March 31, 2024, compared to $489.5 million at June 30, 2023. ●   The Company's average interest rate spread was 2.46% for the nine months ended March 31, 2024, compared to 3.55% for the nine months ended March 31, 2023. ●   The Company's net interest margin was 3.14% for the nine months ended March 31, 2024, compared to 3.84% for the nine months ended March 31, 2023. ●   Nonperforming assets totaled $2.4 million, or 0.37% of total assets at March 31, 2024 compared to $1.6 million, or 0.24% of total assets, at June 30, 2023. The decrease in net income for the three months ended March 31, 2024, compared to the same period in 2023, resulted from a decrease in net interest income of $1.1 million, or 19.5%, and a decrease in non-interest income of $2,000, or 0.4%, partially offset by a decrease in non-interest expense of $507,000, or 11.3%, a decrease in the provision of credit losses of $139,000, or 92.7%, and a decrease in provision for income taxes of $95,000, or 35.1%. The decrease in net interest income for the three months ended March 31, 2024, compared to the same period in 2023, resulted from an increase in total interest expense of $1.9 million, or 126.4%, partially offset by an increase in total interest income of $877,000, or 12.5%. The Company's average interest rate spread was 2.16% for the three months ended March 31, 2024, compared to 3.15% for the three months ended March 31, 2023. The Company's net interest margin was 2.89% for the three months ended March 31, 2024, compared to 3.56% for the three months ended March 31, 2023. The decrease in net income for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from a decrease in net interest income of $1.5 million, or 9.4%, an increase in non-interest expense of $619,000, or 5.2%, and a decrease in non-interest income of $516,000, or 32.4%, partially offset by a decrease in the provision of credit losses of $723,000, or 100.7%, and a decrease in provision for income taxes of $433,000, or 59.9%. The decrease in net interest income for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from an increase in total interest expense of $6.7 million, or 240.1%, partially offset by an increase in total interest income of $5.2 million, or 27.3%. The Company's average interest rate spread was 2.46% for the nine months ended March 31, 2024 compared to 3.55% for the nine months ended March 31, 2023. The Company's net interest margin was 3.14% for the nine months ended March 31, 2024 compared to 3.84% for the nine months ended March 31, 2023. On July 1, 2023, the Company adopted the new current expected credit loss ("CECL") methodology for estimating credit losses. This resulted in a $189,000 increase to the allowance for credit losses (the "ACL") and a one-time cumulative adjustment resulted in a $189,000 decrease to stockholders' equity. For purchased credit deteriorated loans, the Company applied the guidance under CECL using the prospective transition approach. As a result, the Company adjusted the amortized cost basis of the purchased credit deteriorated loans by $170,000 to reclassify the purchase discount to the allowance for credit losses on July 1, 2023. The ACL account increased $359,000 from these two transactions. No provision expense was recorded in the first quarter of fiscal 2024, a recovery of credit losses of $16,000 was recorded in the second quarter of fiscal 2024 and a provision of $11,000 was recorded in the third quarter of fiscal 2024. As of March 31, 2024, the ACL was $4.9 million, and the ratio of ACL to gross loans was 0.97%. As of June 30, 2023, the ACL was $5.2 million, and the ratio of ACL to gross loans was 1.05%. The following tables set forth the Company's average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.     For the Three Months Ended March 31,       2024     2023       AverageBalance     AverageYield/Rate     AverageBalance     AverageYield/Rate       (Dollars in thousands)   Interest-earning assets:                                 Loans receivable   $ 504,918       5.80 %   $ 476,721       5.23 % Investment securities     104,646       2.21       120,852       1.99   Interest-earning deposits     3,607       3.79       25,867       4.22   Total interest-earning assets   $ 613,171       5.18 %   $ 623,440       4.56 %                                   Interest-bearing liabilities:                                 Savings accounts   $ 69,178       0.62 %   $ 99,252       0.31 % NOW accounts     68,170       0.58       70,064       0.26   Money market accounts     89,313       2.60       121,256       1.27   Certificates of deposit     222,534       4.36       141,358       2.42   Total interest-bearing deposits     449,195       2.86       431,930       1.26   Other bank borrowings     9,448       8.73       7,513       7.88   FHLB advances     5,956       5.87       4,313       4.89   Total interest-bearing liabilities   $ 464,599       3.02 %   $ 443,756       1.41 %     For the Nine months Ended March 31,       2024     2023       AverageBalance     AverageYield/Rate     AverageBalance     AverageYield/Rate       (Dollars in thousands)   Interest-earning assets:                                 Loans receivable   $ 503,664       5.80 %   $ 423,451       5.22 % Investment securities     109,255       2.38       111,448       1.88   Interest-earning deposits     5,060       3.55       23,950       4.00   Total interest-earning assets   $ 617,979       5.18 %   $ 558,849       4.50 %                                   Interest-bearing liabilities:                                 Savings accounts   $ 73,676       0.46 %   $ 111,948       0.28 % NOW accounts     67,145       0.47       61,509       0.22   Money market accounts     98,021       2.44       100,919       0.67   Certificates of deposit     209,985       4.05       108,211       1.89   Total interest-bearing deposits     448,827       2.58       382,587       0.83   Other bank borrowings     9,100       8.57       6,274       6.82   FHLB advances     4,151       5.77       1,969       4.87   Total interest-bearing liabilities   $ 462,078       2.72 %   $ 390,830       0.95 % The $2,000 decrease in non-interest income for the three months ended March 31, 2024, compared to the same period in 2023, resulted from a decrease in gain on sale of loans of $18,000, a decrease in service charges on deposit accounts of $17,000, and a decrease in gain on sale of fixed assets of $4,000, partially offset by an increase in gain on sale of securities of $26,000, an increase in other non-interest income of $8,000, and an increase in income on bank owned life insurance of $3,000. The $516,000 decrease in non-interest income for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from an increase in loss on sale of real estate of $415,000, a decrease in gain on sale of loans of $220,000, and a decrease in gain on sale of fixed assets of $4,000, partially offset by an increase in service charges on deposit accounts of $77,000, an increase in gain on sale of securities of $26,000, an increase in other non-interest income of $15,000, and an increase in income from bank owned life insurance of $5,000. The decreases in gain on sale of loans for both the quarter and nine months ended March 31, 2024, were primarily due to a decrease in mortgage loan originations caused by the higher interest rate environment. The loss on sale of real estate for the nine months ended March 31, 2024, was primarily due to the bulk sale of twenty-one distressed rental properties. The $507,000 decrease in non-interest expense for the three months ended March 31, 2024, compared to the same period in 2023, resulted from decreases in professional fees of $789,000, data processing expense of $24,000, advertising expense of $20,000, occupancy and equipment expense of $8,000, and loan and collection expense of $3,000, partially offset by increases in compensation and benefits expense of $134,000, other non-interest expense of $130,000, deposit insurance premium expense of $41,000, franchise and bank shares tax expense of $23,000, amortization of core deposit intangible expense of $8,000, and audit and examination fees of $1,000. The $619,000 increase in non-interest expense for the nine months ended March 31, 2024, compared to ...