Home Federal Bancorp, Inc. of Louisiana

Previous wording

There were no changes made to the Company's internal control over financial reporting that occurred during the nine months ended March 31, 2025 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Current wording

There were no changes made to the Company’s internal control over financial reporting that occurred during the quarter ended September 30, 2025 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Previous wording

At March 31, 2025, the Company reported total assets of $619.6 million, a decrease of $17.9 million, or 2.8%, compared to total assets of $637.5 million at June 30, 2024. The decrease in assets was comprised of decreases in net loans receivable of $12.6 million, or 2.7%, from $470.9 million at June 30, 2024 to $458.3 million at March 31, 2025, cash and cash equivalents of $4.5 million, or 12.9%, from $34.9 million at June 30, 2024 to $30.4 million at March 31, 2025, premises and equipment of $736,000, or 4.0%, from $18.3 million at June 30, 2024 to $17.6 million at March 31, 2025, loans-held-for-sale of $734,000, or 42.4%, from $1.7 million at June 30, 2024 to $999,000 at March 31, 2025, core deposit intangible of $216,000, or 18.0%, from $1.2 million at June 30, 2024 to $983,000 at March 31, 2025, investment securities of $102,000, or 0.1%, from $96.0 million at June 30, 2024 to $95.9 million at March 31, 2025, and partially offset by increases in real estate owned of $482,000, or 115.3% from $418,000 at June 30, 2024 to $900,000 at March 31, 2025, deferred tax asset of $186,000, or 15.7%, from $1.2 million at June 30, 2024 to $1.4 million at March 31, 2025, other assets of $178,000, or 13.2%, from $1.3 million at June 30, 2024 to $1.5 million at March 31, 2025, bank owned life insurance of $87,000, or 1.3%, from $6.8 million at June 30, 2024 to $6.9 million at March 31, 2025, and accrued interest receivable of $27,000, or 1.5%, from $1.78 million at June 30, 2024 to $1.8 million at March 31, 2025.

Current wording

At September 30, 2025, the Company reported total assets of $622.630 million, an increase of $13.138 million, or 2.2%, compared to total assets of $609.492 million at June 30, 2025. The increase in assets resulted from increases in cash and cash equivalents of $9.145 million, or 52.7%, from 17.347 million at June 30, 2025 to $26.492 million at September 30, 2025, net loans receivable of $3.352 million, or 0.7%, from $461.004 million at June 30, 2025 to $464.356 million at September 30, 2025, investment securities of $1.547 million, or 1.6%, from $96.230 million at June 30, 2025 to $97.777 million at September 30, 2025, bank owned life insurance of $28,000, or 0.4%, from $6.926 million at June 30, 2025 to $6.954 million at September 30, 2025, and accrued interest receivable of $18,000, or 1.0%, from $1.836 million at June 30, 2025 to $1.854 million at September 30, 2025, partially offset by decreases in premises and equipment, net, of $258,000, or 1.5%, from $17.266 million at June 30, 2025 to $17.008 million at September 30, 2025, loans-held-for-sale of $224,000, or 14.5%, from $1.540 million at June 30, 2025 to $1.316 million at September 30, 2025, real estate owned of $187,000, or 19.3% from $970,000 at June 30, 2025 to $783,000 at September 30, 2025, deferred tax asset of $120,000, or 10.3%, from $1.163 million at June 30, 2025 to $1.043 million at September 30, 2025, other assets of $96,000, or 7.4%, from $1.305 million at June 30, 2025 to $1.209 million at September 30, 2025, and core deposit intangible of $67,000, or 7.3%, from $915,000 at June 30, 2025 to $848,000 at September 30, 2025.

Previous wording

Cash and cash equivalents decreased $4.5 million, or 12.9%, from $34.9 million at June 30, 2024 to $30.4 million at March 31, 2025. The decrease in cash and cash equivalents was primarily due to a reduction in total deposits.

Current wording

Cash and cash equivalents increased $9.145 million, or 52.7%, from $17.347 million at June 30, 2025 to $26.492 million at September 30, 2025. The increase in cash and cash equivalents was primarily due to increases in deposits.

Previous wording

Loans receivable, net, decreased by $12.6 million, or 2.7%, to $458.3 million at March 31, 2025 compared to $470.9 million at June 30, 2024. The decrease in loans receivable, net was primarily due to decreases in construction loans of $8.9 million, commercial real estate loans of $6.9 million, multi-family residential loans of $4.8 million, one-to-four family residential loans of $1.2 million, and other consumer loans of $131,000, partially offset by increases in commercial non-real estate loans of $6.5 million, equity line-of-credit loans of $2.8 million, loans on savings accounts of $58,000, land loans of $10,000, and equity and second mortgage loans of $9,000.

Current wording

Loans receivable, net, increased by $3.352 million, or 0.7%, to $464.356 million at September 30, 2025 compared to $461.004 million at June 30, 2025. The increase in loans receivable, net was primarily due to increases in land loans of $12.237 million, multi-family residential loans of $1.189 million, commercial real estate loans of $1.099 million, equity and second mortgage loans of $216,000, and equity line-of-credit loans of $140,000, partially offset by decreases in construction loans of $6.170 million, one-to-four-family residential loans of $3.425 million, commercial non-real estate loans of $1.824 million, and consumer loans of $218,000.

Previous wording

Investment securities amounted to $95.9 million at March 31, 2025 compared to $96.0 million at June 30, 2024, a decrease of $102,000, or 0.1%. The decrease in investment securities was primarily due to $10.4 million in principal repayments on mortgage backed securities, and a $651,000 increase in securities sold, partially offset by security purchases of $11.1 million.

Current wording

Investment securities amounted to $97.777 million at September 30, 2025, compared to $96.230 million at June 30, 2025, an increase of $1.547 million, or 1.6%. The increase in investment securities was primarily due to security purchases of $4.386 million and a $501,000 decrease in market value losses on available-for-sale securities, partially offset by $3.425 million principal repayments on mortgage backed securities.

Previous wording

At March 31, 2025, the Company had $3.0 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 $1.9 million of non-performing assets at June 30, 2024, consisting of six one-to-four family residential loans, six home equity loans, two commercial non-real estate loans, two commercial real-estate loans, one consumer loan, and one single-family residence in other real estate owned at March 31, 2025, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans, and three single-family residences in other real estate owned at June 30, 2024. At March 31, 2025 the Company had nine one-to-four family residential loans, six home equity loans, five commercial non-real-estate loans, two commercial real-estate loans, and two consumer loans classified as substandard, compared to six one-to-four family residential loans, five commercial non-real-estate loans, four home equity loans and one consumer loan classified as substandard at June 30, 2024. There were no loans classified as doubtful at March 31, 2025 or June 30, 2024.

Current wording

At September 30, 2025, the Company had $2.225 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 $3.305 million of non-performing assets at June 30, 2025, consisting of seven one-to-four family residential loans, three home equity loans, one commercial non-real estate loan, one land loan, and one single-family residence in other real estate owned at September 30, 2025, compared to six one-to-four family residential loans, two home equity loans, three commercial non-real estate loans, two commercial real estate loans and one single-family residences in other real estate owned at June 30, 2025. At September 30, 2025 the Company had ten one-to-four family residential loans, three home equity loans, three commercial non-real estate loans, one commercial real estate loans, one land loan and one consumer loan classified as substandard, compared to eight one-to-four family residential loans, five commercial non-real estate loans, two home equity loans, two commercial real estate loans and one consumer loan classified as substandard at June 30, 2025. There were no loans classified as doubtful at September 30, 2025 or June 30, 2025.

Previous wording

Total liabilities decreased $19.8 million, or 3.4%, from $584.7 million at June 30, 2024 to $564.9 million at March 31, 2025. The decrease in liabilities was comprised of decreases in total deposits of $17.2 million, or 3.0%, from $574.0 million at June 30, 2024 to $556.8 million at March 31, 2025, other borrowings of $3.0 million, or 42.9%, from $7.0 million at June 30, 2024 to $4.0 million at March 31, 2025, advances from borrowers for taxes and insurance of $137,000, or 26.3%, from $521,000 at June 30, 2024 to $384,000 at March 31, 2025, and partially offset by an increase in other accrued expenses and liabilities of $577,000, or 18.1%, from $3.2 million at June 30, 2024 to $3.8 million at March 31, 2025. The decrease in deposits resulted from decreases in certificates of deposit of $32.5 million, or 15.1%, from $214.9 million at June 30, 2024 to $182.4 million at March 31, 2025, money market deposits of $5.7 million, or 6.6%, from $85.5 million at June 30, 2024 to $79.9 million at March 31, 2025, and non-interest bearing deposits of $535,000, or 0.4%, from $130.3 million at June 30, 2024 to $129.8 million at March 31, 2025, partially offset by increases in savings deposits of $19.3 million, or 25.2%, from $76.6 million at June 30, 2024 to $96.0 million at March 31, 2025, and NOW accounts of $2.1 million, or 3.1%, from $66.6 million at June 30, 2024 to $68.7 million at March 31, 2025. The Company had no balances in brokered deposits at March 31, 2025 or June 30, 2024.

Current wording

Total liabilities increased $11.752 million, or 2.1%, from $554.287 million at June 30, 2025 to $566.039 million at September 30, 2025. The increase in liabilities resulted from increases in total deposits of $10.898 million, or 2.0%, from $546.290 million at June 30, 2025 to $557.188 million at September 30, 2025, other accrued expenses and liabilities of $610,000, or 17.7%, from $3.454 million at June 30, 2025 to $4.064 million at September 30, 2025, and advances from borrowers for taxes and insurance of $244,000, or 44.9%, from $543,000 at June 30, 2025 to $787,000 at September 30, 2025. The increase in deposits resulted from increases in certificates of deposit of $12.917 million, or 6.9%, from $187.357 million at June 30, 2025 to $200.274 million at September 30, 2025, non-interest deposits of $5.025 million, or 4.1%, from $122.416 million at June 30, 2025 to $127.441 million at September 30, 2025, and NOW accounts of $1.670 million, or 2.5%, from $67.119 million at June 30, 2025 to $68.789 million at September 30, 2025, partially offset by decreases in money market deposits of $4.848 million, or 6.6%, from $73.771 million at June 30, 2025 to $68.923 million at September 30, 2025, and savings deposits of $3.866 million, or 4.0%, from $95.627 million at June 30, 2025 to $91.761 million at September 30, 2025. The Company had no balances in brokered deposits at September 30, 2025 or June 30, 2025.

Previous wording

Stockholders’ equity increased $1.9 million, or 3.6%, from $52.8 million at June 30, 2024 to $54.7 million at March 31, 2025. The increase in stockholders’ equity was comprised of net income for the nine-month period of $2.7 million, a decrease in the Company’s accumulated other comprehensive loss of $559,000, the vesting of share awards, stock options, and the release of employee stock ownership plan shares totaling $369,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by dividends paid totaling $1.2 million, and stock repurchases of $516,000.

Current wording

Stockholders’equity increased $1.386 million, or 2.5%, from $55.205 million at June 30, 2025 to $56.591 million at September 30, 2025. The increase in stockholders’ equity resulted from net income for the quarter ended September 30, 2025 of $1.599 million, a decrease in the Company’s accumulated other comprehensive loss of $395,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $63,000, and proceeds from the issuance of common stock from the exercise of stock options of $23,000, partially offset by dividends paid totaling $415,000, and stock repurchases of $279,000.

Previous wording

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”). At March 31, 2025, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements. At March 31, 2025, Home Federal Bank exceeded each of its regulatory capital requirements with common equity tier 1, tier 1 capital, total capital, leverage, and tangible capital ratios of 13.42%, 13.42%, 14.53%, 9.24%, and 9.24%, respectively.

Current wording

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”). At September 30, 2025, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements. At September 30, 2025, Home Federal Bank exceeded each of its capital requirements with common equity tier 1, tier 1 capital, total capital, leverage, and tangible capital ratios of 13.33%, 13.33%, 14.35%, 9.35%, and 9.35%, respectively.

Previous wording

Comparison of Operating Results for the Three and Nine Months Ended March 31, 2025 and 2024

Current wording

Comparison of Operating Results for the Three Months Ended September 30, 2025 and 2024

Previous wording

The increase in net income for the three months ended March 31, 2025, as compared to the same period in 2024, resulted primarily from an increase of $270,000, or 6.1%, in net interest income, an increase of $32,000, or 6.3%, in non-interest income, and a decrease of $5,000, or 45.5%, in the provision for credit losses, partially offset by an increase of $260,000, or 6.5%, in non-interest expense and an increase of $31,000, or 17.6%, in the provision for income taxes. The increase in net interest income for the three months ended March 31, 2025, as compared to the same period in 2024, was primarily due to a decrease of $735,000, or 21.1%, in total interest expense, partially offset by a decrease of $465,000, or 5.9%, in total interest income. The Company’s average interest rate spread was 2.66% for the three months ended March 31, 2025, compared to 2.16% for the three months ended March 31, 2024. The Company’s net interest margin was 3.33% for the three months ended March 31, 2025, compared to 2.89% for the three months ended March 31, 2024.

Current wording

The increase in net interest income for the three months ended September 30, 2025, as compared to the same period in 2024, resulted from a decrease of $565,000, or 17.0%, in total interest expense and an increase of $269,000, or 3.5%, in total interest income. The Company’s average interest rate spread was 2.99% for the three months ended September 30, 2025, compared to 2.23% for the three months ended September 30, 2024. The Company’s net interest margin was 3.63% for the three months ended September 30, 2025, compared to 2.98% for the three months ended September 30, 2024.

Previous wording

The $32,000 increase in non-interest income for the three months ended March 31, 2025, compared to the prior year quarterly period, was primarily due to an increase of $27,000 in other non-interest income, an increase of $19,000 in service charges on deposit accounts, an increase of $11,000 in gain on sale of loans, and an increase of $1,000 in income on bank owned life insurance, partially offset by a decrease of $26,000 in gain on sale of securities. The $248,000 increase in non-interest income for the nine months ended March 31, 2025 compared to the prior year nine-month period was primarily due to a decrease of $149,000 in loss on sale of real estate, an increase of $115,000 in other non-interest income, an increase of $14,000 in service charges on deposit accounts, and an increase of $5,000 in income from bank owned life insurance, partially offset by an increase of $32,000 in loss on sale of securities, and a decrease of $3,000 in gain on sale of loans.

Current wording

The $350,000 increase in non-interest income for the three months ended September 30, 2025, compared to the prior year quarterly period, resulted from a decrease of $254,000 in loss on sale of real estate, an increase of $50,000 in gain on sale of loans, an increase of $32,000 in service charges on deposit accounts, and an increase of $14,000 in other non-interest income. The $254,000 loss on sale of real estate for the prior year related to a one-to-four family residence in other real estate owned that was sold during the period.

Previous wording

The $260,000 increase in non-interest expense for the three months ended March 31, 2025, compared to the same period in 2024, is primarily attributable to increases of $414,000 in data processing expense, $77,000 in occupancy and equipment expense, $67,000 in audit and examination fees, $49,000 in professional fees, $40,000 in other non-interest expense, $15,000 in loan and collection expense, and $12,000 in deposit insurance premium expense. The increases were partially offset by decreases of $317,000 in compensation and benefits expense, $55,000 in advertising expense, $33,000 in franchise and bank shares tax expense, and $9,000 in amortization of core deposit intangible expense. The $331,000 decrease in non-interest expense for the nine months ended March 31, 2025, compared to the same nine-month period in 2024, is primarily attributable to decreases of $470,000 in compensation and benefits expense, $184,000 in franchise and bank shares tax expense, $179,000 in advertising expense, $65,000 in other non-interest expense, $47,000 in professional fees, $42,000 in amortization of core deposit intangible expense, $22,000 in deposit insurance premium expense, and $19,000 in loan and collection expense. The decreases were partially offset by increases of $594,000 in data processing expense, $86,000 in occupancy and equipment expense, and $17,000 in audit and examination fees. The increase in data processing expense resulted from a billing discrepancy with our core processor, which had failed to issue invoices for certain services dating back to December 2022. Upon discovery of the issue, we negotiated a discounted settlement to resolve the outstanding invoices.

Current wording

The $160,000 decrease in non-interest expense for the three months ended September 30, 2025, compared to the same period in 2024, resulted from decreases of $152,000 in compensation and benefits expense, $63,000 in audit and examination fees, $33,000 in franchise and bank shares tax, $32,000 in professional fees, $28,000 in advertising expense, $7,000 in amortization of core deposit intangible expense, partially offset by increases of $117,000 in data processing expense, $17,000 in other non-interest expense, $14,000 in loan and collection expense, $4,000 in occupancy and equipment expense, and $3,000 in deposit insurance premium expense.

Previous wording

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.

Current wording

Average Balances, Net Interest Income, Yields Earned, and Rates Paid. The following table shows 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.

Previous wording

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 the Federal Home Loan Bank of Dallas amounted to $21.1 million at March 31, 2025.

Current wording

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 the Federal Home Loan Bank of Dallas amounted to $13.756 million at September 30, 2025.

Previous wording

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 the Federal Home Loan Bank of Dallas which provides an additional source of funds. At March 31, 2025, The Bank had no advances from the Federal Home Loan Bank of Dallasand had $54.8 million in borrowing capacity. Additionally, at March 31, 2025, the Bank was a party to a Master Purchase Agreement with First National Bankers Bank whereby Home Federal Bank may purchase Federal Funds from First National Bankers Bank in an amount not to exceed $20.4 million. There were no amounts purchased under this agreement as of March 31, 2025.

Current wording

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 the Federal Home Loan Bank of Dallas which provides an additional source of funds. At September 30, 2025, The Bank had no advances from the Federal Home Loan Bank of Dallasand had $57.205 million in borrowing capacity. Additionally, at September 30, 2025, the Bank was a party to a Master Purchase Agreement with First National Bankers Bank whereby Home Federal Bank may purchase Federal Funds from First National Bankers Bank in an amount not to exceed $19.900 million. There were no amounts purchased under this agreement as of September 30, 2025. At September 30, 2025, Home Federal Bancorp had a $4.000 million outstanding loan with First National Bankers Bank, which matures on February 5, 2034.

Previous wording

At March 31, 2025, the Bank had outstanding loan commitments of $50.2 million to originate loans and commitments under unused lines of credit of $11.9 million. At March 31, 2025, certificates of deposit scheduled to mature in less than one year totaled $174.7 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. The Bank intends to utilize its high levels of liquidity to fund its lending activities. If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale, as needed.

Current wording

At September 30, 2025, the Bank had outstanding loan commitments of $55.106 million to originate loans and commitments under unused lines of credit of $14.160 million. At September 30, 2025, certificates of deposit scheduled to mature in less than one year totaled $156.356 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. The Bank intends to utilize its high levels of liquidity to fund its lending activities. If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale, as needed.

Previous wording

At March 31, 2025, the Bank exceeded each of its regulatory capital requirements with tangible common equity tier 1, tier 1 capital, total capital, leverage, and tangible capital ratios of 13.42%, 13.42%, 14.53%, 9.24%, and 9.24%, respectively.

Current wording

At September 30, 2025, Home Federal Bank exceeded each of its capital requirements with common equity tier 1, tier 1 capital, total capital, leverage, and tangible capital ratios of 13.33%, 13.33%, 14.35%, 9.35%, and 9.35%, respectively.