Executive Summary
Home Federal Bancorp Inc of Louisiana (HFBL) delivered a solid Q2 2025, posting total revenue of $8.12 million and net income of $1.02 million, equating to an EPS of $0.33. The quarter showed meaningful margin leverage as gross profit rose to $5.01 million on $8.12 million revenue, yielding a gross margin of 61.77%. Operating income was $1.21 million with an operating margin of 14.87%, and net income margin stood at 12.56%. QoQ revenue increased 72.7% after a softer prior quarter, while YoY revenue declined 0.84%, signaling a sharp sequential uplift that may reflect seasonal factors, one-offs, or a shift in income mix. Net income and earnings per share benefited from improved operating leverage, even as interest expense remained a meaningful cost within the structure of HFBL’s income statement.
HFBL’s balance sheet demonstrates strong liquidity with cash and short-term investments totaling about $49.15 million against total assets of $607.76 million. The asset base is notably weighted toward long-term investments ($529.84 million), suggesting a conservative investment posture focused on securities and related income, rather than rapid asset growth through new lending in the quarter. Total liabilities ($553.83 million) largely comprise current liabilities, with relatively modest equity ($53.93 million). Net cash provided by operating activities was $2.59 million, while free cash flow was $2.584 million. Financing activities were negative, driven by substantial cash outflows (-$20.45 million) including debt repayments and other financing activities, resulting in a net change in cash of -$21.50 million for the quarter. The company ended the period with $19.54 million in cash and cash equivalents.
In terms of efficiency and profitability, HFBL exhibits a modest return profile (ROA 0.17%; ROE 1.89%), reflecting a bank with a very low leverage footprint and a capital-light liability base. The stock trades at a price-to-book ratio of approximately 0.71 and a price-to-earnings ratio around 9.41x, which may imply an undervaluation relative to peers given the growth/earnings profile, though the low ROE and limited balance sheet expansion temper enthusiasm. The overall signal is of a niche, liquidity‑rich regional bank that can sustain earnings power in a steady rate environment but faces turn-the-year margin and loan growth headwinds. Investors should monitor deposit stability, margin sensitivity to rate moves, and the balance between security-based assets and traditional lending.
Key Performance Indicators
Key Insights
Revenue: $8,116,000; YoY -0.84%, QoQ +72.72%
Gross Profit: $5,013,000; Margin 61.77%; YoY -0.22%, QoQ +6.68%
Operating Income: $1,207,000; Margin 14.87%; YoY +49.57%, QoQ +28.54%
Net Income: $1,020,000; Margin 12.56%; YoY +1.69%, QoQ +8.40%
EPS: $0.33; YoY 0.00%, QoQ +6.45%
EBITDA: $1,522,000; EBITDARatio 18.75%
Interest Expense: $3,058,000
Depreciation & Amortization: $315,000
Income Tax Expense: $187,000
Weighted Avg Shares (basic): 3,059,000; Weighted Avg Shares Diluted: 3,075,000
Net Cas...
Financial Highlights
Revenue: $8,116,000; YoY -0.84%, QoQ +72.72%
Gross Profit: $5,013,000; Margin 61.77%; YoY -0.22%, QoQ +6.68%
Operating Income: $1,207,000; Margin 14.87%; YoY +49.57%, QoQ +28.54%
Net Income: $1,020,000; Margin 12.56%; YoY +1.69%, QoQ +8.40%
EPS: $0.33; YoY 0.00%, QoQ +6.45%
EBITDA: $1,522,000; EBITDARatio 18.75%
Interest Expense: $3,058,000
Depreciation & Amortization: $315,000
Income Tax Expense: $187,000
Weighted Avg Shares (basic): 3,059,000; Weighted Avg Shares Diluted: 3,075,000
Net Cash Provided by Operating Activities: $2,590,000
Free Cash Flow: $2,584,000
Net Change in Cash: -$21,504,000; Cash End of Period: $19,540,000; Cash Beginning of Period: $41,044,000
Balance Sheet Highlights: Total Assets $607.76m; Total Liabilities $553.83m; Total Stockholders’ Equity $53.93m
Liquidity: Cash & Short-Term Investments $49.15m; Long-Term Investments $529.84m; Total Current Assets $50.93m; Total Current Liabilities $546.54m
Key Ratios (selected): Current/Quick/Cash Ratios 0.0932/0.0932/0.0358; Gross Margin 61.77%; Operating Margin 14.87%; Net Margin 12.56%; ROA 0.17%; ROE 1.89%; P/B 0.71; P/S 4.73; P/E 9.41%; Dividend Yield 1.06%; Debt/Equity 0.0742; Debt Ratio 0.00658; Interest Coverage 0.395; Dividend Payout 39.9%
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
8.12M |
-0.84% |
72.72% |
| Gross Profit |
5.01M |
-0.22% |
6.68% |
| Operating Income |
1.21M |
49.57% |
28.54% |
| Net Income |
1.02M |
1.69% |
8.40% |
| EPS |
0.33 |
0.00% |
6.45% |
Key Financial Ratios
operatingProfitMargin
14.9%
operatingCashFlowPerShare
$0.85
freeCashFlowPerShare
$-0.29
dividendPayoutRatio
39.9%
Management Commentary
Note: The earnings transcript for HFBL QQ2 2025 is not provided in the dataset. As a result, there are no management quotes or highlights to cite from an earnings call. The analysis below synthesizes the disclosed financials and the implicit guidance that may be inferred from public filings and market metrics. If a verbatim transcript becomes available, quotes and quotes-based themes can be incorporated to enrich the narrative (e.g., strategy, operations, market conditions).
Forward Guidance
HFBL’s filings do not include explicit forward-looking targets within the QQ2 2025 data provided. Consequently, the forward guidance section relies on industry context, HFBL’s balance sheet posture, and the current earnings trajectory. Near-term anchors include:
- Revenue trajectory: QoQ recovery to $8.12m in Q2 2025 after a softer prior quarter, suggesting potential stabilization in lending and related fee income, albeit with a YoY decline in revenue. Monitoring seasonal patterns and any one-off items will be important for sustaining quarterly stability.
- Margin framework: Gross margin of 61.8% alongside operating margin of 14.9% indicate modest operating leverage as fixed costs spread over higher quarterly revenue. If rate environments compress net interest income, HFBL will need to manage non-interest income and cost control to sustain margins.
- Balance sheet and liquidity: Large long-term investments (~$530m) dominate assets, with total current liabilities (~$547m) exceeding current assets, a bank-typical construct given a large deposit base and borrowings. The liquidity position remains robust on an overall view, but ongoing focus on deposit stability and liability management will be key in a rising-rate or recession scenario.
- Cash flows: Positive operating cash flow ($2.59m) but heavy financing activities (-$20.45m) yielded a negative net cash change. Ongoing attention to capital deployment, debt management, and potential needs for additional liquidity would be prudent if deposit growth slows or asset mix rebalances.
- Growth catalysts and risks: Potential growth in fee-based services, treasury management, and mortgage-related activity in the Louisiana region, balanced against interest-rate sensitivity, credit risk in CRE/real estate segments, and competitive dynamics in a concentrated regional market. Investors should monitor deposit trends, loan demand, and the sensitivity of HFBL’s earnings to rate moves.
- Likely trajectory: In a steady-rate environment, HFBL could sustain earnings power with margin discipline and balance-sheet risk controls. A favorable deposit growth environment or expansion into low-cost funding channels would be meaningful upside; conversely, elevated funding costs or credit costs would pose downside pressure.