Executive Summary
Home Federal Bancorp Inc. of Louisiana (HFBL) delivered a subdued Q4 2024 performance with net income of $638 thousand and EPS of $0.21 on revenue of $4.835 million, marking YoY declines in topline and profitability metrics. The quarterly results reflect a still-revenue-constrained environment for a small regional bank, with a heavy emphasis on investment securities and limited loan growth contributing to a compressed net interest margin and elevated interest expense of $3.459 million. Gross margins remained high at 99.07%, but the overall earnings lever pulled by elevated financing costs underscores a fragile earnings base despite a solid asset base.
From a balance sheet perspective, HFBL carries a sizable investment securities portfolio (total investments reported at roughly $568.5 million, with long-term investments around $541.5 million) and a relatively modest debt footprint. Total assets stood at approximately $637.5 million, while stockholders’ equity was about $52.8 million, translating to a near-term tangible equity position that, coupled with a P/B multiple around 0.67, implies a potential valuation discount relative to book value. However, return metrics lag peers, with ROE around 1.21% and ROA near 0.10%, signaling limited profitability given current leveraging and mix.
Looking ahead, the stock continues to trade near a discount to book value, suggesting potential upside if HFBL can nudge profitability through loan growth, net interest income expansion, or better deployment of the investment portfolio amid a evolving rate environment. Key factors to monitor include net interest margin trends, loan origination activity, deposit dynamics, credit quality in real estate segments, and any portfolio impairment risk as market rates and economic conditions evolve. The company also faces the challenge of a liquidity profile that appears lean on traditional liquidity ratios, despite a robust cash and investment holdings base, which warrants vigilance in a rising-rate regime or if deposit costs rise materially.
Key Performance Indicators
QoQ: -1.31% | YoY:-18.11%
QoQ: -1.60% | YoY:-18.87%
QoQ: -9.25% | YoY:-48.50%
QoQ: -12.84% | YoY:-49.28%
QoQ: -12.50% | YoY:-50.00%
Key Insights
Revenue: USD 4.835 million; YoY change: -18.11%; QoQ change: -1.31%
Gross Profit: USD 4.79 million; YoY change: -18.87%; QoQ change: -1.60%
Operating Income: USD 0.824 million; YoY change: -48.50%; QoQ change: -9.25%
Net Income: USD 0.638 million; YoY change: -49.28%; QoQ change: -12.84%
EPS: USD 0.21; YoY change: -50.00%; QoQ change: -12.50%
Gross Margin: 99.07%
Operating Margin: 17.04%
Pretax Margin: 17.04%
Net Margin: 13.2%
Tax Rate (effective): 22.6%
Return on Assets (ROA): ~0.10%
Return on ...
Financial Highlights
Revenue: USD 4.835 million; YoY change: -18.11%; QoQ change: -1.31%
Gross Profit: USD 4.79 million; YoY change: -18.87%; QoQ change: -1.60%
Operating Income: USD 0.824 million; YoY change: -48.50%; QoQ change: -9.25%
Net Income: USD 0.638 million; YoY change: -49.28%; QoQ change: -12.84%
EPS: USD 0.21; YoY change: -50.00%; QoQ change: -12.50%
Gross Margin: 99.07%
Operating Margin: 17.04%
Pretax Margin: 17.04%
Net Margin: 13.2%
Tax Rate (effective): 22.6%
Return on Assets (ROA): ~0.10%
Return on Equity (ROE): ~1.21%
Debt Ratio: ~1.10%
Total Debt to Capitalization: ~11.7%
Price to Book (P/B): 0.67x
Price to Earnings (P/E): 13.76x
Dividend Payout Ratio: 61.4%
Dividend Yield: 1.12%
Cash Flow: Operating Cash Flow USD 1.858 million; Free Cash Flow USD 1.484 million
Net Change in Cash: USD +26.929 million; End Cash: USD 34.948 million; Beginning Cash: USD 8.019 million
Total Assets: USD 637.5 million; Total Liabilities: USD 584.7 million; Stockholders’ Equity: USD 52.8 million
Liquidity indicators show a current ratio and quick ratio both around 0.11; cash and short-term investments total USD 42.285 million; long-term securities and investments are a dominant component of the asset base (Total Investments USD 568.538 million).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
4.84M |
-18.11% |
-1.31% |
| Gross Profit |
4.79M |
-18.87% |
-1.60% |
| Operating Income |
824.00K |
-48.50% |
-9.25% |
| Net Income |
638.00K |
-49.28% |
-12.84% |
| EPS |
0.21 |
-50.00% |
-12.50% |
Key Financial Ratios
operatingProfitMargin
17%
operatingCashFlowPerShare
$0.61
freeCashFlowPerShare
$0.49
dividendPayoutRatio
61.4%
Management Commentary
No earnings call transcript quotes are available in the provided data. No management quotes could be extracted for thematic highlights. If a transcript becomes available, quotes can be grouped by themes (strategy, operations, market conditions) with context and significance added.
Forward Guidance
HFBL did not publish formal forward guidance in the provided data. Given the financial structure and market context, the guidance implications are conditional: (1) Net interest income could improve if the bank experiences loan growth or a rising rate environment that expands lending margins; (2) Portfolio performance will hinge on the valuation and yield of the large securities portfolio, with potential sensitivity to market value fluctuations during rate moves; (3) Deposit dynamics and expense management will be critical to sustaining profitability. Our assessment: achievability of meaningful earnings expansion in the near term is contingent on a combination of modest loan growth, net interest margin expansion, and disciplined expense control. Investors should monitor management commentary on loan origination pipelines, deposit retention costs, and any portfolio impairment considerations as macroeconomic conditions evolve.