Home Federal Bancorp has reported that its net income for the second quarter of fiscal 2008 was $945,000, a decrease from net income of $1.2 million for the same quarter of fiscal 2007.
Revenues for the quarter, which consisted of net interest income before the provision for loan losses plus non-interest income, increased 2% to $8.3 million, compared to $8.1 million for the same quarter of 2007.
Net interest income before the provision for loan losses increased 8% to $5.8 million for the quarter compared to $5.4 million for the corresponding quarter in 2007. The increase in net interest income is primarily attributable to a decrease in interest expense on Federal Home Loan Bank of Seattle borrowings as maturing advances have been funded with excess liquidity.
The company’s net interest margin increased 15 basis points to 3.15% for the period, from 3% for the comparable period of 2007.
Net income for the six months ended March 31, 2008 declined to $1.9 million, or $0.12 per diluted share, from $2.5 million, or $0.15 per diluted share, for the same six-month period in 2007.
Revenues for the period were $15.9 million, a decline of 4% as compared to $16.5 million recorded in the same period of 2007. Net interest income before the provision for loan losses for period decreased less than 1% to $10.8 million compared to $10.9 million for the corresponding period of 2007.
The net interest margin for the six months ended March 31, 2008 increased five basis points to 3.07% from 3.02% for the comparable period of 2007.
Len Williams, president and CEO of Home Federal Bancorp, said: We continue to operate according to our growth plan which includes driving net interest margin by focusing on gathering low cost deposits, generating higher yielding commercial loans and maintaining our fee generation discipline. Our priority remains on quality organic growth.