Home Federal Bancorp, Inc. of Louisiana (Nasdaq: HFBL) reported financial results for the three months ended September 30, 2026. The company recorded net income of $1.911 million for the third quarter of 2026, a 12.2% increase compared to the $1.599 million reported for the same period in 2025. Earnings per share were $0.64 on a basic basis and $0.62 on a diluted basis for the quarter.
The increase in net income was driven by a rise in net interest income and non-interest income. Net interest income increased by $643,000, or 8.6%, due to higher total interest income, which rose by $687,000. This was partially offset by a $44,000 increase in total interest expense. The company’s average interest rate spread was 3.17% for the quarter, compared to 2.99% in the prior year, and the net interest margin was 3.83%.
Non-interest income also grew, increasing by $203,000, or 31.2%. This growth was attributed to a $204,000 gain from the bulk sale of 44 rental properties, gains on the sale of fixed assets, and service charges on deposit accounts. These gains were partially offset by a loss on the sale of securities and a decrease in gains on the sale of loans.
Non-interest expenses increased by $230,000, or 6.0%. The company noted a $100,000 increase in other real estate owned write-down expense related to the value of a large commercial property, as well as increases in compensation and benefits and professional fees.
On the balance sheet, total assets increased to $655.564 million at September 30, 2026, from $643.330 million at June 30, 2026. This increase was driven by higher net loans receivable and cash and cash equivalents. Total liabilities increased to $596.809 million, largely due to advances from the Federal Home Loan Bank of Dallas, which were established during the quarter.
Non-performing assets decreased to $1.556 million at September 30, 2026, from $3.649 million at the end of the previous quarter. Stockholders' equity decreased by $2,000 to $58.755 million, primarily due to dividends paid and stock repurchases, partially offset by net income and the vesting of equity awards.
