10-Q 1 ef20026266_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: 
March 31, 2024
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 May 9, 2024: The registrant had 3,138,588 shares of common stock outstanding.



INDEX

     Page
PART I
FINANCIAL INFORMATION
 
 
 
 
Item 1:
Financial Statements (Unaudited)
 
 
 
 
 
1
 
 
 
 
2
 
 
 
 
3
 
 
 
 
4
 
 
 
 
6
 
 
 
 
8
 
 
 
Item 2:
37
 
 
 
Item 3:
45
 
 
 
Item 4:
45
 
 
 
PART II
OTHER INFORMATION
 
 
 
 
Item 1:
46
 
 
 
Item 1A:
46
 
 
 
Item 2:
46
 
 
 
Item 3:
46
 
 
 
Item 4:
46
 
 
 
Item 5:
46
 
 
 
Item 6:
47
 
 
 
 
 

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(In thousands except share and per share data)

    March 31, 2024     June 30, 2023  
    (Unaudited)    
 
ASSETS
           
 
           
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $2,681 and $22,215
at March 31, 2024 and June 30, 2023, respectively)
 
$
8,019
   
$
24,765
 
Securities Available-for-Sale, at fair value (amortized cost March 31, 2024: $33,089; June 30, 2023: $42,910, respectively)
   
29,829
     
39,551
 
Securities Held-to-Maturity, at amortized cost (fair value March 31, 2024: $55,660; June 30, 2023: $59,678, respectively)
   
68,706
     
72,879
 
Other Securities
    1,596       1,544  
Loans Held-for-Sale
   
1,904
     
4
 
Loans Receivable, Net of Allowance for Credit Losses (March 31, 2024: $4,887; June 30, 2023: $5,173, respectively)
   
499,267
     
489,493
 
Accrued Interest Receivable
   
1,932
     
1,790
 
Premises and Equipment, Net
   
18,161
     
16,561
 
Bank Owned Life Insurance
   
6,782
     
6,700
 
Goodwill
    2,990       2,990  
Core Deposit Intangible
    1,275       1,533  
Deferred Tax Asset
   
1,273
     
1,313
 
Real Estate Owned
   
-
     
368
 
Other Assets
   
1,292
     
1,424
 
                 
Total Assets
 
$
643,026
   
$
660,915
 
                 
LIABILITIES AND STOCKHOLDERS’ EQUITY
               
                 
LIABILITIES
               
                 
Deposits:
               
Non-interest bearing
 
$
132,577
   
$
145,553
 
Interest-bearing
   
446,304
     
451,808
 
Total Deposits
   
578,881
     
597,361
 
Advances from Borrowers for Taxes and Insurance
   
416
     
554
 
Other Borrowings
   
8,500
     
8,550
 
Other Accrued Expenses and Liabilities
   
2,679
     
3,908
 
                 
Total Liabilities
   
590,476
     
610,373
 
                 
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: 3,145,236 and 3,133,351 Shares Issued and
Outstanding at March 31, 2024 and June 30, 2023, respectively
   
32
     
31
 
Additional Paid-in Capital
   
41,321
     
40,981
 
Unearned ESOP Stock
   
(437
)
   
(523
)
Retained Earnings
   
14,257
     
12,707
 
Accumulated Other Comprehensive Loss
   
(2,623
)
   
(2,654
)
                 
Total Stockholders’ Equity
   
52,550
     
50,542
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY
 
$
643,026
   
$
660,915
 

See accompanying notes to unaudited consolidated financial statements.

1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited) (In thousands except per share data)

   
Three Months Ended
March 31,
   
Nine Months Ended
March 31,
 
   
2024
   
2023
   
2024
   
2023
 
INTEREST INCOME
                       
Loans, including fees
 
$
7,281
   
$
6,151
   
$
21,952
   
$
16,585
 
Investment securities
   
124
     
100
     
573
     
105
 
Mortgage-backed securities
   
451
     
492
     
1,384
     
1,472
 
Other interest-earning assets
   
34
     
270
     
135
     
720
 
Total interest income
   
7,890
     
7,013
     
24,044
     
18,882
 
                                 
INTEREST EXPENSE
                               
Deposits
   
3,194
     
1,342
     
8,688
     
2,387
 
Federal Home Loan Bank borrowings
   
87
     
52
     
180
     
72
 
Other bank borrowings
   
205
     
146
     
586
     
321
 
Total interest expense
   
3,486
     
1,540
     
9,454
     
2,780
 
Net interest income
   
4,404
     
5,473
     
14,590
     
16,102
 
 
                               
PROVISION FOR (RECOVERY OF) CREDIT LOSSES
   
11
     
150
     
(5
)
   
718
 
Net interest income after provision for credit losses
   
4,393
     
5,323
     
14,595
     
15,384
 
                                 
NON-INTEREST INCOME
                               
Gain on sale of loans
    69       87       184       404  
Gain (loss) on sale of real estate and fixed assets
    -       4       (415 )     4  
Gain on sale of securities
    26       -       26       -  
Income on bank owned life insurance
   
28
     
25
     
82
     
77
 
Service charges on deposit accounts
   
363
     
380
     
1,151
     
1,074
 
Other income
   
20
     
12
     
50
     
35
 
Total non-interest income
   
506
     
508
     
1,078
     
1,594
 
                                 
NON-INTEREST EXPENSE
                               
Compensation and benefits
   
2,453
     
2,319
     
7,137
     
6,694
 
Occupancy and equipment
   
533
     
541
     
1,625
     
1,540
 
Data processing
   
139
     
163
     
513
     
564
 
Audit and examination fees
   
83
     
82
     
456
     
243
 
Franchise and bank shares tax
   
168
     
145
     
488
     
386
 
Advertising
   
77
     
97
     
302
     
238
 
Professional fees
   
96
     
885
     
443
     
1,085
 
Loan and collection
   
31
     
34
     
123
     
148
 
Amortization core deposit intangible
    79       71       258       71  
Deposit insurance premium
   
90
     
49
     
289
     
150
 
Other expenses
   
242
     
112
     
794
     
690
 
Total non-interest expense
   
3,991
     
4,498
     
12,428
     
11,809
 
                                 
Income before income taxes
   
908
     
1,333
     
3,245
     
5,169
 
PROVISION FOR INCOME TAX EXPENSE
   
176
     
271
     
290
     
723
 
                                 
NET INCOME
 
$
732
   
$
1,062
   
$
2,955
   
$
4,446
 
                                 
EARNINGS PER SHARE
                               
Basic
 
$
0.24
   
$
0.35
   
$
0.97
   
$
1.48
 
Diluted
 
$
0.24
   
$
0.34
   
$
0.95
   
$
1.41
 

See accompanying notes to unaudited consolidated financial statements.

2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited) (In thousands)

   
For the Three Months Ended
March 31,
   
For the Nine Months Ended
March 31,
 
   
2024
   
2023
   
2024
   
2023
 
                         
Net Income
 
$
732
   
$
1,062
   
$
2,955
   
$
4,446
 
 
                               
Other Comprehensive Income (Loss), Net of Tax
                               
Unrealized gains (losses) on securities available for sale:
                               
Unrealized holding gains (losses) arising during the period
   
(608
)
   
763
     
65
     
(348
)
Less: reclassification adjustments for securities gains (losses) realized in net income
    26       -       26       -  
Income tax effect
   
133
     
(160
)
   
(8
)
   
73
 
Total Other Comprehensive Income (Loss), Net of Tax
   
(501
)
   
603
     
31
     
(275
)
                                 
Total Comprehensive Income
 
$
231
   
$
1,665
   
$
2,986
   
$
4,171
 

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 MARCH 31, 2024 and 2023
(Unaudited) (In thousands)

   
Common
Stock
   
Additional
Paid-in
Capital
   
Unearned
ESOP
Stock
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total
Stockholders’
Equity
 
       
BALANCE – December 31, 2022
 
$
31
   
$
40,669
   
$
(581
)
 
$
11,147
   
$
(2,577
)
 
$
48,689
 
                                                 
Net Income
   
-
     
-
     
-
     
1,062
     
-
     
1,062
 

                                               
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects
    -       -       -       -       603       603  
                                                 
Share Awards Earned
    -       10       -       -       -       10  
                                                 
Stock Options Vested
   
-
     
26
     
-
     
-
     
-
     
26
 
                                                 
Common Stock Issuance for Stock Option Exercises
   
-
     
19
     
-
     
-
     
-
     
19
 
                                                 
ESOP Compensation Earned
   
-
     
70
     
29
     
-
     
-
     
99
 
                                                 
Company Stock Purchased
   
-
     
-
     
-
     
(1
)
   
-
     
(1
)
                                                 
Dividends Declared
   
-
     
-
     
-
     
(384
)
   
-
     
(384
)
                                                 
BALANCE – March 31, 2023
 
$
31
   
$
40,794
   
$
(552
)
 
$
11,824
   
$
(1,974
)
 
$
50,123
 
                                                 
BALANCE – December 31, 2023
 
$
31
   
$
41,224
   
$
(466
)
 
$
13,927
   
$
(2,122
)
 
$
52,594
 
                                                 
Net Income
   
-
     
-
     
-
     
732
     
-
     
732
 
                                                 
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
    -       -       -       -       (501 )     (501 )
                                                 
Share Awards Earned
    -       5       -       -       -       5  
                                                 
Stock Options Vested
    -       23       -       -       -       23  
                                                 
Common Stock Issuance for Stock Option Exercises
    1       19       -       -       -       20  
                                                 
ESOP Compensation Earned
   
-
     
50
     
29
     
-
     
-
     
79
 
                                                 
Company Stock Purchased
    -       -       -       (9 )     -       (9 )
                                                 
Dividends Declared
   
-
     
-
     
-
     
(393
)
   
-
     
(393
)
                                                 
BALANCE – March 31, 2024
 
$
32
   
$
41,321
   
$
(437
)
 
$
14,257
   
$
(2,623
)
 
$
52,550
 
 
See accompanying notes to unaudited consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY
NINE MONTHS ENDED MARCH 31, 2024 and 2023
(Unaudited) (In thousands)

   
Common
Stock
   
Additional
Paid-in
Capital
   
Unearned
ESOP
Stock
   
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total
Stockholders’
Equity
 
   

 
BALANCE – June 30, 2022
 
$
34
   
$
40,145
   
$
(639
)
 
$
14,506
   
$
(1,699
)
 
$
52,347
 
                                                 
Net Income
   
-
     
-
     
-
     
4,446
     
-
     
4,446
 
                                                 
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects
   
-
     
-
     
-
     
-
     
(275
)
   
(275
)
                                                 
Share Awards Earned
    -       123       -       -       -       123  
                                                 
Stock Options Vested
   
-
     
80
     
-
     
-
     
-
     
80
 
                                                 
Common Stock Issuance for Stock Option Exercises
   
(3
)
   
220
     
-
     
-
     
-
     
217
 
                                                 
ESOP Compensation Earned
   
-
     
226
     
87
     
-
     
-
     
313
 
                                                 
Company Stock Purchased
   
-
     
-
     
-
     
(5,963
)
   
-
     
(5,963
)
                                                 
Dividends Declared
   
-
     
-
     
-
     
(1,165
)
   
-
     
(1,165
)
                                                 
BALANCE – March 31, 2023