HOME FEDERAL BANCORP, INC. OF LOUISIANA General
The Company's results of operations are primarily dependent on the results ofHome Federal Bank (the "Bank"), its wholly owned subsidiary. The Bank's results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings. Results of operations are also affected by provisions for loan losses and loan sale activities. Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, and other expenses. Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies, and actions of regulatory authorities. Future changes in applicable law, regulations, or government policies may materially impact our financial condition and results of operations.
The Bank operates from its main office in
Critical Accounting Policies
Allowance for Loan Losses. The Company has identified the calculation of the allowance for loan losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies. Provisions for loan losses are based upon management's periodic valuation and assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions, and other relevant factors in order to maintain the allowance for loan losses at a level believed by management to represent all known and inherent losses in the portfolio that are both probable and reasonably estimable. Although management uses the best information available, the level of the allowance for loan losses remains an estimate which is subject to significant judgment and short-term change. Income Taxes. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method. Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax basis of the various assets and liabilities and gives current recognition to changes in tax rates and laws. The realization of our deferred tax assets principally depends upon our achieving projected future taxable income. We may change our judgments regarding future profitability due to future market conditions and other factors. We may adjust our deferred tax asset balances, if our judgments change.
Discussion of Financial Condition Changes from
General AtDecember 31, 2022 , the Company reported total assets of$576.5 million , a decrease of$13.9 million , or 2.4%, compared to total assets of$590.5 million atJune 30, 2022 . The decrease in assets was comprised primarily of decreases in cash and cash equivalents of$43.6 million , or 68.1%, from$64.1 million atJune 30, 2022 to$20.4 million atDecember 31, 2022 , loans held-for-sale of$1.7 million , or 43.5%, from$4.0 million atJune 30, 2022 to$2.2 million atDecember 31, 2022 , investment securities of$699,000 , or 0.6%, from$108.0 million atJune 30, 2022 to$107.4 million atDecember 31, 2022 , and premises and equipment of$161,000 , or 1.0%, from$16.2 million atJune 30, 2022 to$16.1 million atDecember 31, 2022 . These decreases were partially offset by increases in loans receivable, net of$31.3 million , or 8.1%, from$387.9 million atJune 30, 2022 to$419.2 million atDecember 31, 2022 , deferred tax asset of$318,000 , or 27.8%, from$1.1 million atJune 30, 2022 to$1.5 million atDecember 31, 2022 , real estate owned of$269,000 from none atJune 30, 2022 to$269,000 atDecember 31, 2022 , accrued interest receivable of$260,000 , or 23.1%, from$1.1 million atJune 30, 2022 to$1.4 million atDecember 31, 2022 , other assets of$59,000 , or 4.2%, from$1.4 million atJune 30, 2022 to$1.5 million atDecember 31, 2022 , and bank owned life insurance of$52,000 , or 0.8%, from$6.6 million atJune 30, 2022 to$6.7 million atDecember 31, 2022 . 30
--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Discussion of Financial Condition Changes from
Cash and Cash Equivalents Cash and cash equivalents decreased$43.6 million , or 68.1%, from$64.1 million atJune 30, 2022 to$20.4 million atDecember 31, 2022 . The decrease in cash and cash equivalents was primarily due to an increase in commercial loan originations and security purchases.
Loans Receivable, Net
Loans receivable, net, increased by$31.3 million , or 8.1%, to$419.2 million atDecember 31, 2022 compared to$387.9 million atJune 30, 2022 . The increase in loans receivable, net, was primarily due to increases in commercial real estate loans of$17.6 million , one-to-four-family residential loans of$13.0 million , equity line-of-credit loans of$2.6 million , commercial non-real estate loans of$2.5 million , multi-family residential loans of$75,000 , and equity and second mortgage loans of$14,000 , partially offset by decreases in construction loans of$3.7 million , land loans of$523,000 , and consumer loans of$45,000 .
Loans Held-for-Sale
Loans held-for-sale decreased$1.7 million , or 43.5%, from$4.0 million atJune 30, 2022 to$2.2 million atDecember 31, 2022 . The decrease in loans held-for-sale resulted primarily from the decrease in the origination volume during the first six months of fiscal year end 2023.
Investment securities amounted to$107.4 million atDecember 31, 2022 compared to$108.0 million atJune 30, 2022 , a decrease of$699,000 , or 0.6%. The decrease in investment securities was primarily due to principal repayments on mortgage backed securities of$6.5 million and a$1.1 million increase in market value losses on available-for-sale securities offset by security purchases of$6.9 million . Premises and Equipment, Net Premises and equipment, net, decreased$161,000 , or 1.0%, to$16.1 million atDecember 31, 2022 compared to$16.2 million atJune 30, 2022 . The decrease in premises and equipment was primarily due to depreciation expense for the six month period. Asset Quality AtDecember 31, 2022 , the Company had$2.2 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to$2.2 million on non-performing assets atJune 30, 2022 , consisting of six single-family residential loans and two single family residences in other real estate owned atDecember 31, 2022 , compared to six single-family residential loans and one line of credit loan atJune 30, 2022 . AtDecember 31, 2022 , the Company had four single family residential loans and two commercial real estate loans classified as substandard compared to five single family residential loans and two commercial real estate loans classified as substandard atJune 30, 2022 . There were two one-to-four family residential loans moved to real estate owned during the quarter endingDecember 31, 2022 . There were no loans classified as doubtful atDecember 31, 2022 orJune 30, 2022 . Total Liabilities Total liabilities decreased$10.3 million , or 1.9%, from$538.1 million atJune 30, 2022 to$527.9 million atDecember 31, 2022 primarily due to decreases in total deposits of$13.8 million , or 2.6%, to$518.2 million atDecember 31, 2022 compared to$532.0 million atJune 30, 2022 , other accrued expenses and liabilities of$505,000 , or 19.4%, to$2.1 million atDecember 31, 2022 compared to$2.6 million atJune 30, 2022 , advances from borrowers for taxes and insurance of$176,000 , or 49.7%, to$178,000 atDecember 31, 2022 compared to$354,000 atJune 30, 2022 , and advances from theFederal Home Loan Bank of$18,000 or 2.2%, to$814,000 atDecember 31, 2022 compared to$832,000 atJune 30, 2022 , partially offset by an increase in other borrowings of$4.2 million , or 178.7%, to$6.6 million atDecember 31, 2022 compared to$2.4 million atJune 30, 2022 . The decrease in deposits was primarily due to a$28.7 million , or 21.6%, decrease in savings deposits from$133.0 million atJune 30, 2022 to$104.3 million atDecember 31, 2022 , a$9.7 million , or 6.0%, decrease in non-interest bearing deposits from$161.1 million atJune 30, 2022 to$151.5 million atDecember 31, 2022 , a$2.4 million , or 2.5%, decrease in money market deposits from$98.6 million atJune 30, 2022 to$96.2 million atDecember 31, 2022 , and a decrease of$2.2 million , or 3.7%, in NOW accounts from$59.0 million atJune 30, 2022 to$56.8 million atDecember 31, 2022 , partially offset by an increase of$29.2 million , or 36.4%, in certificates of deposit from$80.3 million atJune 30, 2022 to$109.5 million atDecember 31, 2022 . The Company had$3.0 million in brokered deposits atDecember 31, 2022 compared to$6.0 million atJune 30, 2022 . The decrease in advances from theFederal Home Loan Bank was primarily due to principal paydowns on amortizing advances. The entire balance in advances from theFederal Home Loan Bank atDecember 31, 2022 were short-term due to our only advance with a balloon maturity inJanuary 2023 . We will be paying off this debt with funds from our FHLB demand account. 31
--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Discussion of Financial Condition Changes from
Stockholders' Equity Stockholders' equity decreased$3.7 million , or 7.0%, to$48.7 million atDecember 31, 2022 from$52.3 million atJune 30, 2022 . The primary reasons for the changes in stockholders' equity fromJune 30, 2022 were the repurchase of Company stock of$6.0 million , a decrease in the Company's accumulated other comprehensive income of$878,000 , and dividends paid totaling$781,000 , partially offset by net income of$3.4 million , the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling$381,000 , and proceeds from the issuance of common stock from the exercise of stock options of$198,000 . The Company repurchased 291,000 shares of its common stock during the six months endedDecember 31, 2022 at an average price per share of$19.99 . OnFebruary 16, 2022 , the Company announced that its Board of Directors approved an eleventh stock repurchase program for the repurchase of up to 170,000 shares. The eleventh stock repurchase program was completed onAugust 2, 2022 .
The Bank is required to meet minimum capital standards promulgated by theOffice of the Comptroller of the Currency ("OCC"). AtDecember 31, 2022 ,Home Federal Bank's regulatory capital was well in excess of the minimum capital requirements. AtDecember 31, 2022 ,Home Federal Bank exceeded each of its regulatory capital requirements with tangible equity, common equity Tier 1, core, and total risk-based capital ratios of 9.99%, 14.08%, 9.99%, and 15.25%, respectively.
Comparison of Operating Results for the Three and Six Months Ended
General The increase in net income for the three months endedDecember 31, 2022 , as compared to the prior year quarter resulted primarily from a$1.1 million , or 27.2%, increase in net interest income, a decrease of$128,000 , or 3.5%, in non-interest expense, partially offset by a decrease of$497,000 , or 48.1%, in non-interest income, a$144,000 , or 47.9%, increase in provision for income taxes and an$89,000 , or 145.9%, increase in provision for loan losses. The increase in the provision for loan losses for the three months endedDecember 31, 2022 , was primarily due to loan growth. The increase in net income for the six months endedDecember 31, 2022 resulted primarily from a$2.2 million , or 26.4%, increase in net interest income, a decrease of$200,000 , or 30.6%, in provision for income taxes, partially offset by a decrease of$966,000 , or 47.1% in non-interest income, an increase of$507,000 , or 831.1%, in provision for loan losses, and an increase of$91,000 , or 1.3%, in non-interest expense. The increase in the provision for loan losses for the six months endedDecember 31, 2022 , was primarily due to loan growth. 32
--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Months Ended
Net Interest Income The increase in net interest income for the three months endedDecember 31, 2022 was primarily due to a$1.4 million , or 29.9%, increase in total interest income, partially offset by an increase of$263,000 , or 52.5%, in total interest expense. The Company's average interest rate spread was 3.67% for the three months endedDecember 31, 2022 compared to 2.99% for the three months endedDecember 31, 2021 . The Company's net interest margin was 3.91% for the three months endedDecember 31, 2022 compared to 3.15% for the three months endedDecember 31, 2021 . The increase in net interest income for the six-month period was primarily due to a$2.4 million , or 25.5%, increase in total interest income, partially offset by a$189,000 , or 18.0%, increase in total interest expense. The Company's average interest rate spread was 3.70% for the six months endedDecember 31, 2022 compared to 2.99% for the six months endedDecember 31, 2021 . The Company's net interest margin was 3.91% for the six months endedDecember 31, 2022 compared to 3.15% for the six months endedDecember 31, 2021 .
Provision for Loans Losses
Based on an analysis of historical experience, the volume and type of lending conducted byHome Federal Bank , the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to our market area, and other factors related to the collectability ofHome Federal Bank's loan portfolio, the provision for loan losses was$150,000 for the three month period endedDecember 31, 2022 and$568,000 for the six month period endedDecember 31, 2022 , compared to$61,000 in provisions made for both the three and six months endedDecember 31, 2021 . The allowance for loan losses was$4.8 million , or 1.14% of total loans receivable, atDecember 31, 2022 compared to$4.2 million , or 1.14% of total loans receivable atDecember 31, 2021 . AtDecember 31, 2022 ,Home Federal Bank had$1.9 million in non-performing loans and$269,000 in other real estate owned which totaled$2.2 million in non-performing assets.
Non-interest Income
The$497,000 decrease in non-interest income for the three months endedDecember 31, 2022 compared to the prior year quarterly period, was primarily due to a decrease of$568,000 in gain on sale of loans, a$4,000 decrease in other non-interest income, and a$2,000 decrease in income from bank owned life insurance partially offset by an increase of$77,000 in service charges on deposit accounts. The$966,000 decrease in non-interest income for the six months endedDecember 31, 2022 compared to the prior year six-month period was primarily due to a decrease of$1.1 million in gain on sale of loans, a decrease of$5,000 in other non-interest income, and a$3,000 decrease in income from bank owned life insurance, partially offset by a$145,000 increase in service charges on deposit accounts. The decreases in gain on sale of loans for both the quarter and six-month periods were primarily due to a decrease in refinance activity causing a decrease in mortgage loan originations. The Company sells most of its long-term fixed rate residential mortgage loan originations primarily in order to manage interest rate risk. Non-interest Expense The$128,000 decrease in non-interest expense for the three months endedDecember 31, 2022 compared to the same period in 2021, is primarily attributable to decreases of$213,000 in compensation and benefits expense,$33,000 in audit and examination fees,$31,000 in legal fees,$20,000 in franchise and bank shares expense,$6,000 in loan and collection expense, and$2,000 in advertising expense. The decreases were partially offset by increases of$64,000 in other non-interest expense,$55,000 in occupancy and equipment expense,$44,000 in data processing expense, and$14,000 in deposit insurance premium expense. The$91,000 increase in non-interest expense for the six months endedDecember 31, 2022 , compared to the same six month period in 2021, is primarily attributable to increases of$158,000 in other non-interest expense,$128,000 in occupancy and equipment expense,$23,000 in deposit insurance premium expense,$16,000 in data processing expense, partially offset by decreases of$141,000 in compensation and benefits expense,$30,000 in audit and examination fees,$30,000 in franchise and bank shares expense,$26,000 in loan and collection expense,$5,000 in legal fees, and$2,000 in advertising expense. TheLouisiana bank shares tax is assessed on the Bank's equity and earnings. For the three and six months endedDecember 31, 2022 , the Company recognized franchise and bank shares tax expense of$122,000 and$241,000 , respectively, compared to$142,000 and$271,000 , respectively, for the same periods in 2021. 33
--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Months Ended
Income Taxes Income taxes amounted to$444,000 and$453,000 for the three and six months endedDecember 31, 2022 , respectively, resulting in an effective tax rate of 20.6% and 11.8%. Income taxes amounted to$300,000 and$653,000 for the three and six months endedDecember 31, 2021 , respectively. The decrease in provision for income taxes was due to an adjustment in taxes related to stock option exercises. Average Balances, Net Interest Income, Yields Earned, and Rates Paid. The following tables show for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be. Three Months Ended December 31, 2022 2021 Average Average Average Yield/ Average Yield/ Balance
Interest Rate Balance Interest Rate
(Dollars In Thousands)
Interest-earning assets:
Loans receivable $ 415,113 $
5,406 5.17 %
107,490 493 1.82 96,765 345 1.41
Interest-earning deposits 17,067 189 4.39 70,847 30 0.17
Total interest-earning assets $ 539,670 6,088 4.48 %
36,125 39,730
Total assets $ 575,795 $ 566,528
Interest-bearing liabilities:
Savings accounts $ 109,471 80 0.29 % $ 136,482 101 0.29 %
NOW accounts 61,223 42 0.27 47,633 14 0.12
Money market accounts 96,264 96 0.40 87,012 26 0.12
Certificate accounts 101,234 427 1.67 92,477 334 1.43
Total interest bearing deposits 368,192 645 0.70 363,604 475 0.52
Other borrowings 6,422 109 6.74 1,643 16 3.86
FHLB advances 817 10 4.80 857 10 4.63
Total interest-bearing liabilities $ 375,431 764 0.81 % $ 366,104 501 0.54 %
Non-interest-bearing liabilities:
Non-interest bearing demand accounts 149,091 143,686
Other liabilities 3,454 2,883
Total interest bearing liabilities 527,976 512,673
Total Stockholders' Equity(1) 47,819 53,591
Total liabilities and equity $ 575,795 $ 566,264
Net interest-earning assets $ 164,239 $ 160,694
Net interest income; average interest rate spread(2) $ 5,324 3.67 % $ 4,185 2.99 %
Net interest margin(3) 3.91 % 3.15 %
Average interest-earning assets to average
interest-bearing liabilities 143.75 % 143.89 %
--------------------------------------------------------------------------------
(1) Includes retained earnings and accumulated other comprehensive loss.
(2) Interest rate spread represents the difference between the weighted-average
yield on interest-earning assets and the weighted-average rate on
interest-bearing liabilities.
(3) Net interest margin is net interest income divided by net average
interest-earning assets.
34--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Months Ended
Six Months Ended December 31,
2022 2021
Average Average
Average Yield/ Average Yield/
Balance Interest Rate Balance Interest Rate
(Dollars In Thousands)
Interest-earning assets:
Loans receivable $ 405,940 $
10,434 5.10 %
109,045 985 1.79 91,518 686 1.49
Interest-earning deposits 24,931 450 3.58 86,289 66 0.15
Total interest-earning assets $ 539,916 11,869 4.36 %
40,556 37,951
Total assets $ 580,472 $ 566,821
Interest-bearing liabilities:
Savings accounts $ 119,110 164 0.27 % $ 134,811 208 0.31 %
NOW accounts 59,940 59 0.19 49,011 28 0.11
Money market accounts 95,479 131 0.27 87,002 51 0.12
Certificate accounts 92,974 691 1.47 96,920 717 1.47
Total interest-bearing deposits 367,503 1,045 0.56 367,744 1,004 0.54
Other bank borrowings 5,668 175 6.12 1,643 26 3.14
FHLB advances 822 20 4.83 857 21 4.86
Total interest-bearing liabilities $ 373,993 1,240 0.66 %
155,501 142,858
Other liabilities 3,373 839
Total liabilities 532,867 513,941
Total Stockholders' Equity(1) 47,605 52,880
Total liabilities and equity $ 580,472 $ 566,821
Net interest-earning assets $ 165,923 $ 158,626
Net interest income; average interest rate spread(2) $ 10.629 3.70 % $ 8.409 2.99 %
Net interest margin(3) 3.91 % 3.15 %
Average interest-earning assets to average
interest-bearing liabilities 144.37 % 142.84 %
--------------------------------------------------------------------------------
(1) Includes retained earnings and accumulated other comprehensive loss.
(2) Interest rate spread represents the difference between the weighted-average
yield on interest-earning assets and the weighted-average rate on
interest-bearing liabilities.
(3) Net interest margin is net interest income divided by net average
interest-earning assets.
35--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Comparison of Operating Results for the Three and Six Months Ended
Liquidity and Capital Resources
The Bank maintains levels of liquid assets deemed adequate by management. The Bank adjusts its liquidity levels to fund deposit outflows, repay its borrowings, and to fund loan commitments. The Bank also adjusts liquidity as appropriate to meet asset and liability management objectives. The Bank's primary sources of funds are deposits, amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, loan sales, and earnings and funds provided from operations. While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition. The Bank sets the interest rates on its deposits to maintain a desired level of total deposits. In addition, the Bank invests excess funds in short-term interest-earning accounts and other assets which provide liquidity to meet lending requirements. The Bank's deposit accounts with theFederal Home Loan Bank of Dallas amounted to$638,000 atDecember 31, 2022 . A significant portion of the Bank's liquidity consists of securities classified as available-for-sale and cash and cash equivalents. The Bank's primary sources of cash are net income, principal repayments on loans and mortgage-backed securities, and increases in deposit accounts. If the Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with theFederal Home Loan Bank of Dallas which provides an additional source of funds. AtDecember 31, 2022 , the Bank had$814,000 in advances from theFederal Home Loan Bank of Dallas and had$182.5 million in additional borrowing capacity. Additionally, atDecember 31, 2022 , the Bank was a party to a Master Purchase Agreement withFirst National Bankers Bank wherebyHome Federal Bank may purchase Federal Funds fromFirst National Bankers Bank in an amount not to exceed$20.4 million . There were no amounts purchased under this agreement as ofDecember 31, 2022 . In addition, the Company had available a$10.0 million line of credit agreement atDecember 31, 2022 withFirst National Bankers Bank . AtDecember 31, 2022 , there was a$6.6 million balance in the credit line. AtDecember 31, 2022 , the Bank had outstanding loan commitments of$58.4 million to originate loans and commitments under unused lines of credit of$13.9 million . AtDecember 31, 2022 , certificates of deposit scheduled to mature in less than one year totaled$77.8 million . Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal in a rising interest rate environment. If additional funds are required to fund lending activities,Home Federal Bank intends to sell its securities classified as available-for-sale, as needed.
At
Off-Balance Sheet Arrangements
At
Impact of Inflation and Changing Prices
The financial statements and related financial data presented herein have been
prepared in accordance with instructions to Form 10-Q which require the
measurement of financial position and operating results in terms of historical
dollars without considering changes in relative purchasing power over time due
to inflation.
Unlike most industrial companies, virtually all of the Company's assets and
liabilities are monetary in nature. As a result, interest rates generally have
a more significant impact on a financial institution's performance than does the
effect of inflation.
36--------------------------------------------------------------------------------
Index
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Forward-Looking Statements
This Form 10-Q contains certain forward-looking statements and information relating to the Company that are based on the beliefs of management, as well as assumptions made by and information currently available to management. In addition, in those and other portions of this document the words "anticipate", "believe", "estimate", "except", "intend", "should", and similar expressions, or the negative thereof, as they relate to the Company or the Company's management are intended to identify forward-looking statements. Such statements reflect the current views of the Company with respect to future looking events and are subject to certain risks, uncertainties, and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary from those described herein as anticipated, believed, estimated, expected, or intended. The Company does not intend to update these forward-looking statements. In addition to factors previously disclosed in the reports filed by the Company with theSecurities and Exchange Commission and those identified elsewhere in this Form 10-Q, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength ofthe United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company's credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company's loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company's business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company's financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company's operations, markets, products, services and fees.
© Edgar Online, source
