The Company reported the following highlights during the nine months ended March 31, 2026:
Net interest margin increased 54 basis points to 3.68% for the nine months ended March 31, 2026, compared to 3.14% for the same period in 2025.
Return on average assets increased 44 basis points to 1.02% for the nine months ended March 31, 2026, compared to 0.58% for the same period in 2025.
Home Federal Bancorp repurchased 92,399 shares of its common stock through its stock repurchase program at an average price of $16.08 per share during the nine months ended March 31, 2026, leaving 47,932 shares authorized for repurchase under the program at March 31, 2026.
Book value per share increased to $18.96 at March 31, 2026, from $17.90 at June 30, 2025.
The increase in net income for the three months ended March 31, 2026, as compared to the same period in 2025, resulted from an increase of $733,000, or 15.7%, in net interest income, a decrease of $282,000, or 6.6%, in non-interest expense, and an increase of $83,000, or 15.4%, in non-interest income, partially offset by an increase of $263,000, or 4,383.3%, in the provision for credit losses, and an increase of $111,000, or 53.6%, in the provision for income taxes. The increase in net interest income for the three months ended March 31, 2026, as compared to the same period in 2025, resulted from an increase of $590,000, or 7.9%, in total interest income and a decrease of $143,000, or 5.2%, in total interest expense. The Company's average interest rate spread was 3.13 % for the three months ended March 31, 2026, compared to 2.66% for the three months ended March 31, 2025. The Company's net interest margin was 3.75% for the three months ended March 31, 2026, compared to 3.33% for the three months ended March 31, 2025.
The increase in net income for the nine months ended March 31, 2026, as compared to the same period in 2025 resulted primarily from an increase of $2.346 million, or 17.1%, in net interest income, an increase of $583,000, or 44.0%, in non-interest income, and a decrease of $484,000, or 4.0%, in non-interest expense, partially offset by an increase of $782,000, or 199.5%, in provision for income taxes and an increase of $593,000, or 344.8%, in the provision for credit losses. The increase in net interest income for the nine months ended March 31, 2026, as compared to the same period in 2025, was primarily due to an increase of $1.264 million, or 5.5%, in total interest income, and a decrease of $1.082 million, or 11.9%, in total interest expense. The Company's average interest rate spread was 3.04% for the nine months ended March 31, 2026, compared to 2.44% for the nine months ended March 31, 2025. The Company's net interest margin was 3.68% for the nine months ended March 31, 2026, compared to 3.14% for the nine months ended March 31, 2025.
The following tables set forth the Company's average balances and average yields earned and rates paid on its interest-earning assets and interest-bearing liabilities for the periods indicated.
For the Three Months Ended March 31,
2026
2025
AverageBalance
AverageYield/Rate
AverageBalance
AverageYield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans receivable
$
478,937
6.23
%
$
459,828
5.94
%
Investment securities
98,514
2.39
95,706
2.44
Interest-earning deposits
7,613
3.94
14,513
3.05
Total interest-earning assets
$
585,064
5.56
%
$
570,047
5.28
%
Interest-bearing liabilities:
Savings accounts
$
92,604
1.48
%
$
94,375
1.75
%
NOW accounts
65,736
1.18
69,562
1.15
Money market accounts
67,553
1.90
75,882
2.01
Certificates of deposit
204,379
3.35
182,721
3.76
Total interest-bearing deposits
430,272
2.39
422,540
2.57
Other bank borrowings
3,849
6.53
4,000
7.71
FHLB advances
1,419
3.72
-
-
Total interest-bearing liabilities
$
435,540
2.43
%
$
426,540
2.62
%
For the Nine months ended March 31,
2026
2025
AverageBalance
AverageYield/Rate
AverageBalance
AverageYield/Rate
(Dollars in thousands)
Interest-earning assets:
Loans receivable
$
470,696
6.22
%
$
460,972
5.90
%
Investment securities
97,449
2.32
96,395
2.24
Interest-earning deposits
12,781
4.39
23,326
4.45
Total interest-earning assets
$
580,926
5.52
%
$
580,693
5.24
%
Interest-bearing liabilities:
Savings accounts
$
92,985
1.57
%
$
89,171
1.69
%
NOW accounts
65,617
1.14
71,022
1.17
Money market accounts
70,213
1.97
76,828
2.20
Certificates of deposit
199,346
3.42
191,936
4.04
Total interest-bearing deposits
428,161
2.43
428,957
2.75
Other bank borrowings
3,951
7.11
4,832
7.55
FHLB advances
466
3.72
-
-
Total interest-bearing liabilities
$
432,578
2.48
%
$
433,789
2.80
%
The $83,000 increase in non-interest income for the three months ended March 31, 2026, compared to the same period in 2025, resulted from an increase of $49,000 in gain on sale of loans, an increase of $42,000 in service charges on deposit accounts, and an increase of $3,000 in other non-interest income, partially offset by an increase of $10,000 in loss on sale of real estate, and a decrease of $1,000 in income on bank owned life insurance. The $583,000 increase in non-interest income for the nine months ended March 31, 2026, compared to the same period in 2025, resulted from a decrease of $248,000 in loss on sale of real estate, an increase of $224,000 in gain on sale of loans, an increase of $118,000 in service charges on deposit accounts, and a decrease of $6,000 in loss on sale of securities, partially offset by a decrease of $12,000 in other non-interest income, and a decrease of $1,000 in income on bank owned life insurance.
The $282,000 decrease in non-interest expense for the three months ended March 31, 2026, compared to the same period in 2025, resulted from decreases of $203,000 in data processing, $37,000 in audit and examination fees, $27,000 in other expenses, $15,000 in franchise and bank shares tax, $13,000 in amortization core deposit intangible, $11,000 in loan and collection, $9,000 in professional fees, and $3,000 in occupancy and equipment, partially offset by increases in $25,000 in compensation and benefits, $9,000 in advertising, and $2,000 in deposit insurance premium. The $484,000 decrease in non-interest expense for the nine months ended March 31, 2026, compared to the same period in 2025, resulted from decreases of $255,000 in compensation and benefits, $181,000 in audit and examination fees, $103,000 in data processing, $39,000 in advertising, $28,000 in amortization core deposit intangible, and $25,000 in professional fees, partially offset by increases in $98,000 in other expenses, $22,000 in occupancy and equipment, $14,000 in deposit insurance premium, $8,000 in loan and collection, and $5,000 in franchise and bank shares tax.
Total assets increased $32.157 million, or 5.3%, from $609.492 million at June 30, 2025 to $641.649 million at March 31, 2026. The increase in assets resulted from increases in net loans receivable of $17.921 million, or 3.9%, from $461.004 million at June 30, 2025 to $478.925 million at March 31, 2026, cash and cash equivalents of $11.596 million, or 66.8%, from $17.347 million at June 30, 2025 ...
