Home Federal Bancorp, Inc. of Louisiana Reports Net Earnings for the Quarter Ended September 30, 2009

http://www.businesswire.com/news/home/20091104006511/en

SHREVEPORT, La.--(Business Wire)--
Home Federal Bancorp, Inc. of Louisiana (the "Company") (OTCBB:HFBL), the
"mid-tier" holding company of Home Federal Bank (the "Bank"), reported net
earnings for the three months ended September 30, 2009 of $252,000 as compared
to $109,000 for the three months ended September 30, 2008. Earnings per diluted
share were $0.08 for the first quarter ended September 30, 2009, compared to
$0.03 per diluted share for the quarter ended September 30, 2008.

The increase in net earnings for the three months ended September 30, 2009
compared to the same period in 2008 was primarily due to a $411,000, or 47.2%,
increase in net interest income. This was partially offset by a $205,000, or
27.4%, increase in non-interest expense and a $74,000, or 132.1%, increase in
income taxes for the quarter ended September 30, 2009, compared to the same
period in 2008. The increase in net interest income was primarily due to an
increase in interest income and fees from higher loan originations as a result
of the hiring of additional loan officers since 2008, and a decrease in the
Company`s cost of funds for the September 30, 2009 quarter compared to the prior
year period. The increase in non-interest expense was primarily due to an
increase in compensation and benefits expense and other expenses associated with
the Company`s growth, including the hiring of officers in connection with the
commencement of commercial lending activities and the expansion and improvement
of our Company offices.

At September 30, 2009, the Company reported total assets of $161.7 million, an
increase of $7.0 million, or 4.5%, compared to total assets of $154.7 million at
June 30, 2009. The increase in total assets was due to an increase in loans
receivable of $15.0 million, or 31.1%, reflecting an increase in commercial
lending during the quarter ended September 30, 2009. This increase was partially
offset by decreases in investment securities of $4.2 million, or 4.5%, and cash
and cash equivalents of $4.0 million, or 39.5%. Total liabilities at September
30, 2009 were $129.5 million, an increase of $6.0 million, or 4.9%, compared to
total liabilities of $123.5 million at June 30, 2009. The increase in total
liabilities was due to an increase in deposits of $3.5 million, or 4.0%, an
increase in advances from the Federal Home Loan Bank of Dallas of $2.0 million,
or 5.6%, and an increase in other liabilities of $505,000, or 38.5%. These
increases were primarily associated with the Company`s commercial lending
growth.

Stockholders' equity increased $1.0 million to $32.3 million, or 19.9% of total
assets at September 30, 2009, compared to $31.3 million, or 20.2% of total
assets at June 30, 2009. The increase in stockholders` equity was due primarily
to the change in the Company`s accumulated other comprehensive income,
increasing from a balance of $439,000 at June 30, 2009 to a balance of $1.3
million at September 30, 2009, and net income of $252,000 for the quarter ended
September 30, 2009. These increases were partially offset by the acquisition of
treasury stock of $195,000 and the payment of dividends of $74,000 during the
September 30, 2009 quarter.

Home Federal Bancorp, Inc. of Louisiana is the mid-tier thrift holding company
for Home Federal Bank which conducts business from its main office and two
branch offices in northwest Louisiana. The Company's Internet address is
http://www.homefederalbancorp.com.

This news release contains certain forward-looking statements, including
statements about the financial condition, results of operations and earnings
outlook for Home Federal Bancorp, Inc. of Louisiana.Forward-looking statements
can be identified by the fact that they do not relate strictly to historical or
current facts. They often include words such as "believe," "expect,"
"anticipate," "estimate" and "intend" or future or conditional verbs such as
"will," "would," "should," "could" or "may." Forward-looking statements, by
their nature, are subject to risks and uncertainties. A number of factors - many
of which are beyond the Company`s control - could cause actual conditions,
events or results to differ significantly from those described in the
forward-looking statements. The Company`s reports filed from time-to-time with
the Securities and Exchange Commission, describe some of these factors,
including general economic conditions, changes in interest rates, deposit flows,
the cost of funds, changes in credit quality and interest rate risks associated
with the Company`s business and operations. Other factors described include
changes in our loan portfolio, changes in competition, fiscal and monetary
policies and legislation and regulatory changes. Investors are encouraged to
access the Company`s periodic reports filed with the Securities and Exchange
Commission for financial and business information regarding the Company at
www.homefederalbancorp.com under the Investor Relations menu. We undertake no
obligation to update any forward-looking statements.

Home Federal Bancorp, Inc. of Louisiana
CONDENSED CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands)

ASSETS September 30, June 30,
2009 2009
(Unaudited)
Cash and cash equivalents $ 6,051 $ 10,007
Investment securities 90,593 94,831
Loans receivable 63,219 48,226
Other assets 1,862 1,702

Total assets $ 161,725 $ 154,766

LIABILITIES AND STOCKHOLDERS` EQUITY

Deposits $ 89,617 $ 86,146
Advances from the Federal Home Loan Bank of Dallas 38,030 35,997
Other liabilities 1,818 1,313

Total liabilities 129,465 123,456

Stockholders` equity 32,260 31,310

Total liabilities and stockholders` equity $ 161,725 $ 154,766

Home Federal Bancorp, Inc. of Louisiana
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except share data)

Three months ended
September 30,
2009 2008
(Unaudited)
Total interest income $ 2,190 $ 1,850
Total interest expense 909 980
Net interest income 1,281 870
Provision for loan losses - -
Net interest income after provision for loan losses 1,281 870
Non-interest income 54 43
Non-interest expense 953 748
Income before income taxes 382 165
Income taxes 130 56

NET INCOME $ 252 $ 109

EARNINGS PER SHARE
Basic $ 0.08 $ 0.03
Diluted $ 0.08 $ 0.03

Home Federal Bancorp, Inc. of Louisiana
Daniel R. Herndon, Chief Executive Officer
Clyde D. Patterson, Executive Vice President
318-222-1145

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