EPS of $0.52 increased by 152.4% from previous year
Net income of 1.60M
"Not disclosed in the provided materials." - N/A
Home Federal Bancorp Inc of Louisiana (HFBL) QQ1 2026 Results â Robust TopâLine Growth with Lean Cost Structure and Strong Liquidity in a Regional Banking Market
Executive Summary
HFBL posted a strong start to QQ1 2026 with revenue of $8.01 million and net income of $1.60 million, translating to EPS of $0.53 (diluted $0.52). The yearâoverâyear and quarterâoverâquarter momentum is evident in metrics such as operating income of $2.02 million and an EBITDA of $2.02 million, with an EBITDA margin of roughly 25.18% and a preâtax margin of about 25.18%. Net margin reached ~19.96% for the period. The quarterly performance reflects meaningful topâline expansion (YoY revenue +65.7%, YoY net income +150.6%) alongside continued cost discipline (GA&A and SG&A combined around $114k + $29k + $85k in the period, per line items) and a stable tax rate (~20.7%). However, the quarter exhibits an unusual financing dynamic: interest expense is reported at $2.75 million in the period, which raises questions about the mix of debt versus operating earnings; management commentary (when available) would be essential to confirm whether this reflects oneâtime financing costs, nonrecurring items, or a structural cost of funds that could compress margins in a risingârates environment. The balance sheet shows total assets of $622.6 million and total stockholdersâ equity of $56.6 million, with cash and cash equivalents of $26.5 million and total cash + shortâterm investments of $63.8 million, yielding a negative net debt of approximately $26.5 millionâindicating ample liquidity. The loan portfolio position is sizable at net receivables of $466.2 million, implying meaningful loan growth potential but also illustrating elevated exposure to credit risk dynamics in the Louisiana regional market. These results place HFBL in the upper end of profitability among small regional banks on a margin basis, while the liquidity position provides a cushion against funding volatility. The absence of formal forward guidance in the provided data requires a cautious outlook that hinges on loan growth, deposit stability, and ongoing expense discipline.
Revenue: $8.01M; YoY growth 65.7%; QoQ growth 1.17%
- EBITDA: $2.02M; EBITDA Margin: 25.18%
- Operating Income: $2.02M; Operating Margin: 25.18%
- Net Income: $1.60M; Net Margin: 19.96%
- EPS: $0.53 (GAAP), Diluted $0.52; Weighted Avg Shs: 3.008M (diluted 3.049M)
- Preâtax income: $2.02M; Tax expense: $0.418M; Effective tax rate ~20.7%
- Balance sheet: Total assets $622.6M; Total liabilities $566.0M; Total stockholdersâ equity $56.6M
- Cash position: Cash and equivalents $26.5M; Cash + shortâterm investments $63.8M; Net debt: -$26.5M (net cash)
- Loan book: Net receivables ~$466.2M; Longâterm debt $4.0M; Total debt $4.0M
- Liquidity indicators: Large cash buffer and net cash position support funding stability; however, no explicit current/quick ratios are disclosed in the provided data.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
8.01M
65.67%
1.17%
Operating Income
2.02M
144.78%
111.20%
Net Income
1.60M
150.63%
113.77%
EPS
0.53
152.38%
120.83%
Key Financial Ratios
Net Income vs. Revenue
Expense Breakdown
Management Commentary
Transcript data for QQ1 2026 is not included in the provided materials. Consequently, no management quotes or theme-based highlights can be cited from an earnings call. Investors should reference the official filings (exhibit 874908, 10âK/10âQ as applicable) for verbatim management commentary and guidance to corroborate the operational narrative implied by the quarterly numbers.
Not disclosed in the provided materials.
â N/A
Not disclosed in the provided materials.
â N/A
Forward Guidance
No formal forward guidance was disclosed in the provided data. Given the quarterâs strong revenue and earnings momentum, the base case suggests continued upside from loan growth in the Louisiana regional market and continued cost discipline, assuming modest margin stability. Risks include sensitivity to rate shifts (affecting net interest income and deposit costs), credit quality in the loan portfolio, and competition for deposits. Key factors investors should monitor:
- Loan growth trajectory and mix (residential, commercial real estate, consumer) in Louisiana markets;
- Deposit retention and cost of funds in a rising or volatile rate environment;
- NIM dynamics and sensitivity of interest income to yield curve movements;
- Reserve adequacy relative to loan portfolio quality;
- Any disclosed plan for strategic initiatives (digital banking, efficiency programs, or potential M&A) that could impact profitability or capital adequacy.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
MGYR
59.90%
20.80%
1.87%
10.91%
OFED
1.00%
14.20%
0.95%
23.10%
CULL
70.70%
18.30%
0.87%
20.30%
IROQ
47.50%
6.91%
0.80%
25.66%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
HFBL exhibits a compelling topâline momentum in QQ1 2026 with a strong net income footprint and a favorable liquidity stance. If the loan book remains on a growth trajectory and funding costs stay contained, HFBL could translate revenue growth into sustained earnings improvements. However, investors should monitor the data integrity of reported interest expense versus preâtax income, assess the quality of the loan portfolio, and observe the trajectory of deposits in a competitive regional banking environment. Relative to peer banks, HFBLâs profitability metrics align with a lowerâtoâmid range ROE band for small regional banks but demonstrate solid liquidity and a positive earnings trajectory. The nearâterm investment thesis hinges on: (1) continued loan growth in Louisiana, (2) deposit stability or growth with favorable funding costs, and (3) disciplined expense management. In a base case, HFBL could maintain solid profitability and liquidity, while downside risks include interest rate volatility and credit cycles that could pressure earnings and capital efficiency.
Key Investment Factors
Growth Potential
Strong YoY revenue growth (65.7%) and improving profitability metrics suggest potential for ongoing earnings expansion if loan growth sustains and funding costs remain contained. The sizable net receivables base (~$466.2M) provides a platform for continued loan origination in a regional market with favorable demographics. Serving as a community bank, HFBL could capitalize on crossâselling opportunities and local deposit capture to support sustainable growth.
Profitability Risk
Key risks include: (1) high reliance on Louisiana regional economy with exposure to housing/CRE cycles; (2) potential misalignment between reported interest expense and preâtax income (data inconsistency requiring verification in the 10âQ/10âK filings); (3) funding and liquidity risk if deposit growth slows or competition increases; (4) credit risk and reserve adequacy in a cyclical credit environment; (5) regulatory risk for small banks and potential changes to capital requirements or compliance costs.
Financial Position
Strong liquidity position with negative net debt (~$26.5M) and a robust cash buffer (cash + shortâterm investments â $63.8M) supports funding flexibility. The balance sheet shows a sizable loan portfolio (net receivables â $466.2M) and modest leverage (longâterm debt $4.0M). However, the equity base ($56.6M) relative to earnings suggests a modest return on equity (~around 2.8% based on quarterly net income and average equity), which is in line with peer ranges for small regional banks but below top quartile profitability.
SWOT Analysis
Strengths
Strong quarterly profitability with net income of $1.60M and net margin ~19.96% in QQ1 2026.
Large loan portfolio (net receivables â $466.2M) providing scale in a regional market.
Liquidity cushion with cash and cash equivalents around $26.5M and total cash + shortâterm investments â $63.8M; net debt is negative (net cash) implying funding flexibility.
Controlled operating footprint and a history of steady revenue generation in a bankâstyle business.
Healthy preâtax margin (~25.18%) and positive EBITDA indicating efficient operations for a small bank.
Weaknesses
Scale limitations relative to larger regional banks, which can constrain pricing power and product diversification.
Profitability relative to equity may be muted given a modest equity base (~$56.6M) and a conservative ROE profile (~2â3%).
Potential data inconsistencies (e.g., interest expense vs. preâtax income) require verification in official filings to ensure accurate interpretation of earnings drivers.
Opportunities
Lodging in Louisianaâs regional growth trends; potential for loan origination increases across residential, CRE and commercial segments.
Deposits growth initiatives and digital channel enhancements could improve funding stability and cost of funds.
Opportunity for NIM expansion if rate environments normalize and HFBL can optimize asset mix and hedging strategies.
Threats
Interest rate risk and funding competition that could compress margins or raise deposit costs.
Credit risk in a concentration of net receivables within a regional market; potential reserve adequacy concerns.
Regulatory changes and compliance costs for smaller banks; macroeconomic volatility affecting loan performance and deposit retention.
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