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
      
-
      
-