10-Q 1 brhc10047652_10q.htm 10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 
FORM 10-Q
(Mark One)

QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: 
December 31, 2022
or


TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from 
 
to
 


Commission file number: 
001-35019

HOME FEDERAL BANCORP, INC. OF LOUISIANA
(Exact name of registrant as specified in its charter)
 
Louisiana
 
02-0815311
(State or other jurisdiction of incorporation or organization)
 
(IRS Employer Identification No.)
 
624 Market Street, Shreveport, Louisiana
 
71101
(Address of principal executive offices)
 
(Zip Code)
(318) 222-1145
(Registrant’s telephone number, including area code)

N/A
(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:
 
Title of each class
Trading Symbol(s)
Name of each exchange on which registered
Common Stock (par value $0.01 per share)
HFBL
Nasdaq Stock Market, LLC
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  ☒ Yes  ☐ No
 
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files).  ☒ Yes  ☐ No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer
Accelerated filer
Non-accelerated filer 
Smaller reporting company
 
 
 
Emerging growth company


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
  Yes  
☒   No
 
Shares of common stock, par value $0.01 per share, outstanding as of February 9, 2023: The registrant had 3,121,251 shares of common stock outstanding.



INDEX

 
 
Page
PART I
FINANCIAL INFORMATION
 
 
 
 
Item 1:
Financial Statements
 
 
 
 
 
  1
 
 
 
 
  2
 
 
 
 
  3
 
 
 
 
  4
 
 
 
 
  6
 
 
 
 
  8
 
 
 
Item 2:
30
 
 
 
Item 3:
37
 
 
 
Item 4:
37
 
 
 
PART II
OTHER INFORMATION
 
 
 
 
Item 1:
38
 
 
 
Item 1A:
38
 
 
 
Item 2:
38
 
 
 
Item 3:
38
 
 
 
Item 4:
38
 
 
 
Item 5:
38
 
 
 
Item 6:
39
 
 
 
 
 

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
December 31, 2022 (Unaudited) and June 30, 2022 (Audited) (In thousands except share and per share data)

   
December 31,
2022
   
June 30,
2022
 
     (unaudited)      (audited)  
ASSETS
           
             
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $6,832 and $42,531 December 31, 2022 and June 30, 2022, Respectively)
 
$
20,447
   
$
64,078
 
Securities Available-for-Sale
   
31,127
     
28,099
 
Securities Held-to-Maturity (fair value December 31, 2022: $62,488; June 30, 2022: $69,513, Respectively)
   
76,223
     
79,950
 
Loans Held-for-Sale
   
2,247
     
3,978
 
Loans Receivable, Net of Allowance for Loan Losses (December 31, 2022: $4,788; June 30, 2022: $4,451, Respectively)
   
419,200
     
387,873
 
Accrued Interest Receivable
   
1,384
     
1,124
 
Premises and Equipment, Net
   
16,088
     
16,249
 
Bank Owned Life Insurance
   
6,649
     
6,597
 
Deferred Tax Asset
   
1,461
     
1,143
 
Other Real Estate Owned
   
269
     
-
 
Other Assets
   
1,448
     
1,389
 
                 
Total Assets
 
$
576,543
   
$
590,480
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
                 
LIABILITIES
               
                 
Deposits:
               
Non-interest bearing
 
$
151,468
   
$
161,142
 
Interest-bearing
   
366,743
     
370,849
 
Total Deposits
   
518,211
     
531,991
 
Advances from Borrowers for Taxes and Insurance
   
178
     
354
 
Short-term Federal Home Loan Bank Advances
   
814
     
832
 
Other Borrowings
   
6,550
     
2,350
 
Other Accrued Expenses and Liabilities
   
2,101
     
2,606
 
                 
Total Liabilities
   
527,854
     
538,133
 
                 
STOCKHOLDERS’ EQUITY
               
                 
Preferred Stock – $0.01 Par Value; 10,000,000 Shares Authorized; None Issued and Outstanding
   
-
     
-
 
Common Stock – $0.01 Par Value; 40,000,000 Shares Authorized: 3,121,251 and 3,387,839 Shares Issued and Outstanding at December 31, 2022 and June 30, 2022, Respectively
   
31
     
34
 
Additional Paid-in Capital
   
40,669
     
40,145
 
Unearned ESOP Stock
   
(581
)
   
(639
)
Retained Earnings
   
11,147
     
14,506
 
Accumulated Other Comprehensive Loss
   
(2,577
)
   
(1,699
)
                 
Total Stockholders’ Equity
   
48,689
     
52,347
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
576,543
   
$
590,480
 

See accompanying notes to unaudited consolidated financial statements.

1

 
HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

   
For the Three Months Ended
December 31,
   
For the Six Months Ended
December 31,
 
   
2022
   
2021
   
2022
   
2021
 
   
(In Thousands, Except per Share Data)
 
INTEREST INCOME
                       
Loans, Including Fees
 
$
5,406
   
$
4,311
   
$
10,434
   
$
8,708
 
Investment Securities
   
3
     
-
     
5
     
-
 
Mortgage-Backed Securities
   
490
     
345
     
980
     
686
 
Other Interest-Earning Assets
   
189
     
30
     
450
     
66
 
Total Interest Income
   
6,088
     
4,686
     
11,869
     
9,460
 
                                 
INTEREST EXPENSE
                               
Deposits
   
645
     
475
     
1,045
     
1,004
 
     Other Borrowings
   
109
     
16
     
175
     
26
 
Federal Home Loan Bank Borrowings
   
10
     
10
     
20
     
21
 
Total Interest Expense
   
764
     
501
     
1,240
     
1,051
 
Net Interest Income
   
5,324
     
4,185
     
10,629
     
8,409
 
                                 
PROVISION FOR LOAN LOSSES
   
150
     
61
     
568
     
61
 
Net Interest Income after Provision for Loan Losses
   
5,174
     
4,124
     
10,061
     
8,348
 
                                 
NON-INTEREST INCOME
                               
     Gain on Sale of Loans
   
142
     
710
     
317
     
1,420
 
Income on Bank Owned Life Insurance
   
26
     
28
     
52
     
55
 
Service Charges on Deposit Accounts
   
359
     
282
     
694
     
549
 
Other Income
   
12
     
16
     
23
     
28
 
Total Non-Interest Income
   
539
     
1,036
     
1,086
     
2,052
 
                                 
NON-INTEREST EXPENSE
                               
Compensation and Benefits
   
2,093
     
2,306
     
4,375
     
4,516
 
Occupancy and Equipment
   
498
     
443
     
999
     
871
 
Data Processing
   
220
     
176
     
401
     
385
 
Audit and Examination Fees
   
85
     
118
     
160
     
190
 
Franchise and Bank Shares Tax
   
122
     
142
     
241
     
271
 
Advertising
   
68
     
70
     
142
     
144
 
Legal Fees
   
74
     
105
     
200
     
205
 
Loan and Collection
   
62
     
68
     
114
     
140
 
Deposit Insurance Premium
   
53
     
39
     
100
     
77
 
Other Expense
   
281
     
217
     
578
     
420
 
Total Non-Interest Expense
   
3,556
     
3,684
     
7,310
     
7,219
 
Income Before Income Taxes
   
2,157
     
1,476
     
3,837
     
3,181
 
                                 
PROVISION FOR INCOME TAX EXPENSE
   
444
     
300
     
453
     
653
 
Net Income
 
$
1,713
   
$
1,176
   
$
3,384
   
$
2,528
 
EARNINGS PER COMMON SHARE:
                               
Basic
 
$
0.57
   
$
0.36
   
$
1.10
   
$
0.79
 
Diluted
 
$
0.55
   
$
0.34
   
$
1.05
   
$
0.73
 
DIVIDENDS DECLARED
 
$
0.12
   
$
0.10
   
$
0.24
   
$
0.20
 

See accompanying notes to unaudited consolidated financial statements.

2

 
HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)


   
For the Three Months Ended
December 31,
   
For the Six Months Ended
December 31,
 
   
2022
   
2021
   
2022
   
2021
 
   
(In Thousands)
   
(In Thousands)
 
                         
Net Income
 
$
1,713
   
$
1,176
   
$
3,384
   
$
2,528
 
                                 
Other Comprehensive Loss, Net of Tax
                               
Investment securities available-for-sale:
                               
Net unrealized Losses
   
-
   
(235
)
   
(1,111
)
   
(270
)
Income Tax Effect
   
-
     
49
     
233
     
57
 
Other Comprehensive Loss
   
-
   
(186
)
   
(878
)
   
(213
)
Total Comprehensive Income
 
$
1,713
   
$
990
   
$
2,506
   
$
2,315
 

See accompanying notes to unaudited consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
THREE MONTHS ENDED DECEMBER 31, 2022 AND 2021
(Unaudited)

   
Common
Stock
   
Additional
Paid-in
Capital
   
Unearned
ESOP
Stock
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total
Stockholders’
Equity
 
                                     
BALANCE – September 30, 2021
 
$
34
   
$
37,974
   
$
(725
)
 
$
16,153
   
$
248
   
$
53,684
 
                                                 
Net Income
   
-
     
-
     
-
     
1,176
     
-
     
1,176
 
                                                 
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
   
-
     
-
     
-
     
-
     
(186
)
   
(186
)
                                                 
Share Awards Earned     -       107       -       -       -       107  
                                                 
Stock Options Vested
   
-
     
26
     
-
     
-
     
-
     
26
 
                                                 
Common Stock Issuance for Stock Option Exercises
   
2
     
1,078
     
-
     
-
     
-
     
1,080
 
                                                 
ESOP Compensation Earned
   
-
     
84
     
29
     
-
     
-
     
113
 
                                                 
Company Stock Purchased
   
-
     
-
     
-
     
(2,256
)
   
-
     
(2,256
)
                                                 
Dividends Declared
   
-
     
-
     
-
     
(336
)
   
-
     
(336
)
                                                 
BALANCE – December 31, 2021
 
$
36
   
$
39,269
   
$
(696
)
 
$
14,737
   
$
62
   
$
53,408
 
                                                 
BALANCE – September 30, 2022
 
$
31
   
$
40,400
   
$
(610
)
 
$
9,881
   
$
(2,577
)
 
$
47,125
 
                                                 
Net Income
   
-
     
-
     
-
     
1,713
     
-
     
1,713
 
                                                 
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects
   
-
     
-
     
-
     
-
     
-
     
-
 
                                                 
Share Awards Earned
    -       113       -       -       -       113  
                                                 
Stock Options Vested
   
-
     
28
     
-
     
-
     
-
     
28
 
                                                 
Common Stock Issuance for Stock Option Exercises
   
-
     
54
     
-
     
-
     
-
     
54
 
                                                 
ESOP Compensation Earned
   
-
     
74
     
29
     
-
     
-
     
103
 
                                                 
Company Stock Purchased
   
-
     
-
     
-
     
(73
)
   
-
     
(73
)
                                                 
Dividends Declared
   
-
     
-
     
-
     
(374
)
   
-
     
(374
)
                                                 
BALANCE – December 31, 2022
 
$
31
   
$
40,669
   
$
(581
)
 
$
11,147
   
$
(2,577
)
 
$
48,689
 
 
See accompanying notes to unaudited consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
SIX MONTHS ENDED DECEMBER 31, 2022 AND 2021
(Unaudited)

   
Common
Stock
   
Additional
Paid-in
Capital
   
Unearned
ESOP
Stock
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total
Stockholders’
Equity
 
                                     
BALANCE – June 30, 2021
 
$
34
   
$
37,701
   
$
(754
)
 
$
15,469
   
$
275
   
$
52,725
 
                                                 
Net Income
   
-
     
-
     
-
     
2,528
     
-
     
2,528
 
                                                 
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
   
-
     
-
     
-
     
-
     
(213
)
   
(213
)
                                                 
Share Awards Earned
   
-
     
107
     
-
     
-
     
-
     
107
 
                                                 
Stock Options Vested
   
-
     
52
     
-
     
-
     
-
     
52
 
                                                 
Common Stock Issuance for Stock Option Exercises
   
2
     
1,244
     
-
     
-
     
-
     
1,246
 
                                                 
ESOP Compensation Earned
   
-
     
165
     
58
     
-
     
-
     
223
 
                                                 
Company Stock Purchased
   
-
     
-
     
-
     
(2,589
)
   
-
     
(2,589
)
                                                 
Dividends Declared
   
-
     
-
     
-
     
(671
)
   
-
     
(671
)
                                                 
BALANCE – December 31, 2021
 
$
36
   
$
39,269
   
$
(696
)
 
$
14,737
   
$
62
   
$
53,408
 
                                                 
BALANCE – June 30, 2022
 
$
34
   
$
40,145
   
$
(639
)
 
$
14,506
   
$
(1,699
)
 
$
52,347
 
                                                 
Net Income
   
-
     
-
     
-
     
3,384
     
-
     
3,384
 
                                                 
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects
   
-
     
-
     
-
     
-
     
(878
)
   
(878
)
                                                 
Share Awards Earned
   
-
     
113
     
-
     
-