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 September 30, 2026

☐	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 November 12, 2026: The registrant had 2,997,518 shares of common stock outstanding.

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		Page
PART I	FINANCIAL INFORMATION

Item 1:	Financial Statements (Unaudited)

	Consolidated Balance Sheets	1

	Consolidated Statements of Operations	2

	Consolidated Statements of Comprehensive Income	3

	Consolidated Statements of Changes in Stockholders’ Equity	4

	Consolidated Statements of Cash Flows	5

	Notes to Consolidated Financial Statements	7

Item 2:	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3:	Quantitative and Qualitative Disclosures About Market Risk	39

Item 4:	Controls and Procedures	39

PART II	OTHER INFORMATION

Item 1:	Legal Proceedings	40

Item 1A:	Risk Factors	40

Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	40

Item 3:	Defaults Upon Senior Securities	41

Item 4:	Mine Safety Disclosures	41

Item 5:	Other Information	41

Item 6:	Exhibits	41

SIGNATURES		42

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED BALANCE SHEETS

(Dollar amounts in thousands except per share data)

	September 30, 2026			June 30, 2026
	(Unaudited)

Assets
Cash and cash equivalents (includes interest-bearing deposits with other banks of $30,954 and $28,135 at September 30, 2026 and June 30, 2026, respectively)	$	37,560		$	34,304
Securities available-for-sale (amortized cost September 30, 2026: $49,465; June 30, 2026: $45,980, respectively)		45,499			43,624
Securities held-to-maturity (fair value September 30, 2026: $43,666; June 30, 2026: $46,658, respectively)		54,063			55,439
Other securities		1,111			954
Loans held-for-sale		1,082			1,654
Loans receivable, net of allowance for credit losses (September 30, 2026: $4,902; June 30, 2026: $4,926, respectively)		484,332			475,491
Accrued interest receivable		1,909			1,895
Premises and equipment, net		16,020			16,173
Bank owned life insurance		7,068			7,040
Goodwill		2,990			2,990
Core deposit intangible		625			675
Deferred tax asset		1,490			1,058
Other real estate owned		513			613
Other assets		1,302			1,420
Total assets	$	655,564		$	643,330

Liabilities
Deposits:
Non-interest bearing	$	140,651		$	138,059
Interest bearing		434,272			439,233
Total deposits		574,923			577,292
Advances from borrowers for taxes and insurance		663			511
Advances from the Federal Home Loan Bank of Dallas		14,000			-
Other borrowings		3,556			3,556
Other accrued expenses and liabilities		3,667			3,214
Total liabilities		596,809			584,573

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: 3,030,594 and 3,042,451 shares issued and outstanding at September 30, 2026 and June 30, 2026, respectively		30			30
Additional paid-in capital		44,579			44,429
Unearned ESOP stock		(248	)		(263	)
Retained earnings		17,527			16,423
Accumulated other comprehensive loss		(3,133	)		(1,862	)
Total stockholders’ equity		58,755			58,757

Total liabilities and stockholders’ equity	$	655,564		$	643,330

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS

(Dollar amounts in thousands except per share data)

(Unaudited)

	Three Months Ended September 30,
	2026			2025
Interest income
Loans, including fees	$	7,741		$	7,271
Investment securities		24			13
Mortgage-backed securities		633			542
Other interest-earning assets		299			184
Total interest income		8,697			8,010

Interest expense
Deposits		2,729			2,673
Federal Home Loan Bank borrowings		2			-
Other bank borrowings		62			76
Total interest expense		2,793			2,749

Net interest income		5,904			5,261
Provision for credit losses		275			43
Net interest income after provision for credit losses		5,629			5,218

Non-interest income
Gain on sale of other real estate owned		204			-
Gain on sale of fixed assets		46			-
Gain on sale of loans		138			146
Loss on sale of securities		(52	)		-
Income on bank owned life insurance		28			28
Service charges on deposit accounts		435			423
Other income		54			53
Total non-interest income		853			650

Non-interest expense
Compensation and benefits		2,288			2,150
Occupancy and equipment		522			568
Data processing		236			336
Audit and examination fees		134			69
Franchise and bank shares tax		106			135
Advertising		74			29
Professional fees		161			85
Loan and collection		38			42
Amortization of core deposit intangible		50			67
Deposit insurance premium		104			93
Other real estate owned write-down expense		100			-
Other expenses		268			277
Total non-interest expense		4,081			3,851

Income before income taxes		2,401			2,017
Provision for income tax expense		490			418
Net income	$	1,911		$	1,599

Earnings Per Share
Basic	$	0.64		$	0.53
Diluted	$	0.62		$	0.52

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Dollar amounts in thousands except per share data)

(Unaudited)

	For the Three Months Ended September 30,
	2026			2025
Net income	$	1,911		$	1,599

Other comprehensive gain (loss), net of tax
Unrealized gains (losses) on securities available-for-sale:
Unrealized holding gains (losses) arising during the period		(1,662	)		501
Less: reclassification adjustments for securities losses realized in net income		(52	)		-
Income tax effect		339			(106	)
Total other comprehensive gain (loss), net of tax		(1,271	)		395

Total comprehensive income	$	640		$	1,994

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

THREE MONTHS ENDED SEPTEMBER 30, 2026 AND 2025

(Dollar amounts in thousands except per share data)

(Unaudited)

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

Balance at June 30, 2025	$	32	$	42,187	$	(321	)	$	15,241		$	(1,934	)	$	55,205

Net income		-		-		-			1,599			-			1,599
ESOP compensation earned		-		26		14			-			-			40
Stock options exercised		-		23		-			-			-			23
Dividends paid		-		-		-			(415	)		-			(415	)
Stock options vested		-		23		-			-			-			23
Company stock purchased		-		-		-			(279	)		-			(279	)
Other comprehensive income, unrealized gain on debt securities, net of tax		-		-		-			-			395			395

Balance at September 30, 2025	$	32	$	42,259	$	(307	)	$	16,146		$	(1,539	)	$	56,591

Balance at June 30, 2026	$	30	$	44,429	$	(263	)	$	16,423		$	(1,862	)	$	58,757

Net income		-		-		-			1,911			-			1,911
ESOP compensation earned		-		52		15			-			-			67
Stock options exercised		-		36		-			-			-			36
Dividends paid		-		-		-			(457	)		-			(457	)
Stock options vested		-		26		-			-			-			26
Company stock purchased		-		4		-			(350	)		-			(346	)
Other comprehensive loss, unrealized loss on debt securities, net of tax		-		-		-			-			(1,271	)		(1,271	)
Share awards earned		-		32		-			-			-			32

Balance at September 30, 2026	$	30	$	44,579	$	(248	)	$	17,527		$	(3,133	)	$	58,755

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Dollar amounts in thousands except per share data)

(Unaudited)

	Three Months Ended September 30,
	2026			2025
Cash flows from operating activities
Net income	$	1,911		$	1,599
Adjustments to reconcile net income to net
Cash provided by operating activities
Gain on sale of loans		(138	)		(146	)
Loss on sale of investments		52			-
Net amortization and accretion on securities		(131	)		(81	)
Amortization of deferred loan fees		(21	)		(13	)
Amortization of purchased loans		(30	)		(66	)
Provision for credit losses		275			43
Depreciation of premises and equipment		241			266
Gain on sale of fixed assets		(46	)		-
Gain on sale of other real estate owned		(204	)		-
ESOP compensation expense		67			40
Stock option expense		26			23
Deferred income tax benefit		(93	)		14
Share awards expense		32			-
Increase in cash surrender value on bank owned life insurance		(28	)		(28	)
Amortization of core deposit intangible		50			67
Write-down of other real estate owned		100			-
Changes in assets and liabilities:
Loans held-for-sale – originations and purchases		(6,075	)		(6,399	)
Loans held-for-sale – sale and principal repayments		6,785			6,769
Accrued interest receivable		(14	)		(18	)
Other operating assets		118			96
Other operating liabilities		453			610
Net cash from operating activities		3,330			2,776

Cash flows from investing activities
Loan originations and purchases, net		(10,172	)		(4,117	)
Deferred loan fees collected		24			2
Acquisition of premises and equipment		(99	)		(8	)
Proceeds from sale of premises and equipment		57			-
Proceeds from sale of other real estate owned		1,287			996
Improvements to other real estate owned prior to disposition		-			(10	)
Changes in FHLB stock		(157	)		(4	)
Activity in available-for-sale securities:
Maturities, prepayments and calls		1,881			1,891
Purchases		(6,934	)		(4,386	)
Sales		1,653			-
Activity in held-to-maturity securities:
Maturities, prepayments and calls		1,370			1,534
Net cash from investing activities		(11,090	)		(4,102	)

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Dollar amounts in thousands except per share data)

(Unaudited)

	Three Months Ended September 30,
	2026			2025
Cash flows from financing activities
Net increase (decrease) in deposits	$	(2,369	)	$	10,898
Advances from Federal Home Loan Bank		14,000			-
Dividends paid		(457	)		(415	)
Company stock purchased		(346	)		(279	)
Net increase in advances from borrowers for taxes and insurance		152			244
Proceeds from stock options exercised		36			23
Net cash from financing activities		11,016			10,471

Net increase in cash and cash equivalents		3,256			9,145

Cash and cash equivalents - beginning of period	$	34,304		$	17,347

Cash and cash equivalents - end of period	$	37,560		$	26,492

Supplemental cash flow information
Interest paid on deposits and borrowed funds	$	2,712		$	2,694
Income taxes paid		-			140
Transfer from loans to other real estate owned		1,083			799

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1.	Summary of Accounting Policies

Basis of Presentation

These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended September 30, 2026, are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2027. These unaudited interim condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and notes thereto contained in the Company’s Annual Report on Form 10-K as of and for the year ended June 30, 2026 (the “Company’s 2026 Form 10-K”).

The Company follows accounting standards set by the Financial Accounting Standards Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the statement of financial condition date for potential recognition in the consolidated financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the statement of financial condition date are recognized in the consolidated financial statements as of September 30, 2026. In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred through the date these consolidated financial statements were issued.

Segment Reporting

The Company determined that all of its banking operations serve a similar customer base, offer similar products and services, and are managed through similar processes. Therefore, the Company’s banking operations are aggregated into one reportable operating segment, which generates income principally from interest on loans and, to a lesser extent, securities investments, as well as from fees charged in connection with various loan and deposit services. The Chief Operating Decision Maker (“CODM”), is the President and Chief Executive Officer, who for the purposes of assessing performance, making operating decisions, and allocating Company resources, regularly reviews net income as reported in the accompanying consolidated statements of operations. The level of disaggregation and amounts of significant segment income and expenses that are regularly provided to the CODM are the same as those presented in the accompanying consolidated statements of operations. Likewise, the measure of segment assets is reported on the accompanying consolidated balance sheets as total assets.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated balance sheets and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for credit losses.

Index

Nature of Operations

Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank located in Shreveport, Louisiana. The Bank is a federally chartered stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. The Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by ten full-service banking offices and home office, located in Caddo, Bossier and Webster Parishes, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City-Minden combined statistical area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of September 30, 2026, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

Securities

Securities are being accounted for in accordance with FASB ASC 320’s, Investments, which requires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity. Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically.

Investments in debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums and accretion of discounts, using the interest method. Investments in debt securities that are not classified as held-to-maturity are classified as either trading or available-for-sale securities.

Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities. Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale. Trading account and available-for-sale securities are carried at fair value. Unrealized holding gains and losses on trading securities are included in earnings, while net unrealized holding gains and losses on available-for-sale debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of September 30, 2026 and June 30, 2026.

Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities. Securities are periodically reviewed for impairment. For debt securities in an unrealized loss position, the Company evaluates the securities to determine whether the decline is in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors. Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes. For available for sale investments, credit related impairment is recognized as an allowance for credit losses (“ACL”) on the balance sheet, limited to the amount by which the amortized cost basis exceeds to the fair value, with a corresponding adjustment to earnings. For held to maturity investments, credit related impairment is recognized as an ACL on the balance sheet, for the entire amount of credit loss, with a corresponding adjustment to earnings. Both the ACL and the adjustment to net income may be reversed if conditions change. However, if the Company intends to sell an impaired available for sale security, or more likely than not will be required to sell such security before recovering the amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis. Because the security’s amortized cost basis is adjusted to fair value, there is no ACL in such situation. Accrued interest receivable is excluded from the estimate of credit losses.

In evaluating securities in unrealized loss positions, for impairment and the criteria regarding intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by federal governments or its agencies, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial conditions, among other factors.

The Bank has invested in Federal Home Loan Bank (“FHLB”) stock, and other similar correspondent banks, which is reflected at cost in these consolidated financial statements. As a member of the FHLB System, the Bank is required to purchase and maintain stock in an amount determined by the FHLB. The FHLB stock is redeemable at par value at the discretion of the FHLB.

Index

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.

Loans Receivable

Loans receivable are stated as unpaid principal balances less ACL and unamortized deferred loan fees. Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method. Interest income on contractual loans receivable is recognized on the accrual method. Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Loans are considered past due when the contractual amounts due with respect to principal and interest are not received within 30 days of the contractual due date.

When the payment of principal or interest on a loan is delinquent for more than 90 days, or earlier in some cases, the loan is placed on non-accrual status, unless the loan is in the process of collection and the underlying collateral fully supports the carrying value of the loan. If the decision is made to continue accruing interest on the loan, periodic reviews are made to confirm the accruing status of the loan. All interest accrued but not collected for loans that are placed on non-accrual or loans charged-off is reversed against income. The interest on these loans is accounted for on the cash basis or cost-recovery method, until qualifying for return to accrual basis. Loans are returned to the accrual status when all of the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Loans are charged-off to the ACL to the extent management is relatively certain that principal and interest will be uncollectible. Management may elect to partially charge-off a loan to adjust the principal balance to the net realizable value of the collateral that secures the loan. When a partial charge-off is made, the remaining balance of the loan is placed on nonaccrual. Recoveries of amounts previously charged-off, if any, are credited to the ACL until the principal balance of the loan is fully recovered. Any subsequent payments are recognized as income. Past due status is based on the contractual terms of the loan. In all cases, loans are placed on nonaccrual status or charged-off at an earlier date if collection of principal or interest is considered doubtful.

Allowance for Credit Losses

The inherent risks in the Company’s loan portfolio are summarized in the following table.

Loan Pool		Risk Characteristics
One-to-four family residential		Residential mortgage loans are primarily secured by one-to-four family residences. Repayment is generally dependent on the borrower’s continued employment and financial condition. Credit risk is influenced by changes in local housing values and economic conditions.
Commercial real estate		Commercial real estate loans are generally secured by owner-occupied and non-owner-occupied properties. Repayment is dependent upon the successful operation of the borrower’s business or the income-producing capacity of the underlying property. Risks include adverse economic conditions, declines in occupancy rates, reductions in rental income, and decreases in collateral values.
Multi-family residential		Multi-family residential loans are generally secured by income-producing residential properties. Repayment is largely dependent upon rental income generated by the property and the borrower’s ability to effectively manage operations. Risks associated with these loans include changes in economic conditions, occupancy rates, market rents, operating costs, and collateral values, any of which may impair the borrower’s repayment capacity.
Land and construction		Construction and land development loans involve additional risks because repayment is dependent on the successful completion and sale or leasing of the underlying project. These loans are particularly sensitive to changes in economic conditions, construction costs, demand for real estate, and project delays.
Equity loans and lines of credit		Home equity loans and lines are secured by junior liens on residential property. Repayment depends on the borrower’s financial condition and available home equity. These loans may be more vulnerable to collateral deficiencies in periods of declining home values.
Commercial		Commercial business loans are made to businesses for various purposes, including working capital, equipment purchases, and expansion. Repayment is primarily dependent on the cash flows generated by the borrower’s business. Risks include changes in economic conditions, management performance, competition, and industry-specific factors.
Consumer		Consumer loans include automobile loans, unsecured loans, and loans secured by deposit accounts. Repayment is dependent on the borrower’s personal financial condition. These loans generally involve higher default risk than residential mortgage loans because they are often secured by depreciating assets or may be unsecured.

Index

Allowance for Credit Losses (Continued)

The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

The ACL for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. The ACL is determined for two distinct categories of loans: 1) loans evaluated collectively for expected credit losses and 2) loans evaluated individually for expected credit losses. The ACL also includes certain qualitative adjustments to the ASU 2016-13 model.

Loans Evaluated Collectively. Homogeneous loans are evaluated collectively for expected credit losses. The loan pools/segments with similar risk characteristics were determined by Call Report codes.

Loans Evaluated Individually. Loans evaluated individually for expected credit losses could include loans on non-accrual status.

Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of nonperforming assets, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

Loans evaluated individually may have specific allocations assigned if the measured value of the loan using one of the noted techniques is less than its current carrying value. For loans measured using the fair value of collateral, if the analysis determines that sufficient collateral value would be available for repayment of the debt, then no allocations would be assigned to those loans. Collateral could be in the form of real estate or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification. For all loans, an internal risk rating process is used. The Company believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. Assigning risk ratings involves judgment. Risk ratings may be changed based on ongoing monitoring procedures, or if specific loan review assessments identify a deterioration or an improvement in the loan.

Index

Allowance for Credit Losses (Continued)

The following is a summary of the Company’s internal risk rating categories:

•

Pass - Loans classified as pass are well protected by the current net worth or paying capacity of the obligor or by the fair value, less costs to acquire and sell the underlying collateral in a timely manner.

•

Pass Watch - Loans are considered marginal, meaning some weakness has been identified which could cause future impairment of repayment. However, these relationships are currently protected from any apparent loss by collateral.

•

Special Mention - Loans identified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the Bank’s credit position at some future date.

•

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

•

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

•

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted. Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans. Accordingly, these loans are charged-off before period end.

The allocation of the ACL is reviewed to evaluate its appropriateness in relation to the overall risk profile of the loan portfolio. The Company considers risk factors such as: local and national economic conditions; trends in delinquencies and non-accrual loans; the diversity of borrower industry types; and the composition of the portfolio by loan type.

Qualitative and Other Adjustments to Allowance for Credit Losses: In addition to the quantitative credit loss estimates for loans evaluated collectively, qualitative factors that may not be fully captured in the quantitative results are also evaluated. These include changes in lending policy, the nature and volume of the portfolio, overall business conditions in the economy, credit concentrations, competition, model imprecision, and legal and regulatory requirements. Qualitative adjustments are judgmental and are based on Management’s knowledge of the portfolio and the markets in which the Company operates. Qualitative adjustments are evaluated and approved on a quarterly basis. Additionally, the ACL includes other allowance categories that are not directly incorporated in the quantitative results. These include but are not limited to loans-in-process, trade acceptances and overdrafts.

Off Balance Sheet Credit Exposures. The ACL for off balance sheet credit exposures is recorded in other liabilities on the Consolidated Balance Sheet. This ACL represents management’s estimate of expected losses in its unfunded loan commitments and other off balance sheet credit exposures, such as letters of credit and credit recourse on sold residential mortgage loans. The allowance for credit losses specific to unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). The ACL for off balance sheet credit exposures is increased or decreased by charges or reductions to expense, through the provision for credit losses. In addition to the ACL on loans held for investment, CECL requires a balance sheet liability for unfunded commitments, which is recognized if both of the following conditions are met: (1) the Company has a present contractual obligation to extend credit; and (2) the obligation is not unconditionally cancellable by the Company. Based on the language within the standard loan documents prepared for each Home Federal Bank commitment, all unfunded commitments are considered unconditionally cancellable and thus no CECL ACL is allocated.

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Bank has entered into commitments to extend credit. Such financial instruments are recorded when they are funded.

Index

Other Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and carried at the lower of cost or current fair value minus estimated costs to sell as of the date of foreclosure. Cost is defined as the lower of the fair value of the property or the recorded investment in the loan. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.

Premises and Equipment

Land is carried at cost. Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows:

Buildings and Improvements	10 - 40 Years
Furniture and Equipment	3 - 10 Years

Bank-Owned Life Insurance

The Bank has purchased life insurance contracts on the lives of certain key employees. The Bank is the beneficiary of these policies. These contracts are reported at their cash surrender value and changes in the cash surrender value are included in non-interest income.

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated federal income tax return on a fiscal year basis. Each entity will pay its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method. Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

The Company follows the provisions of the Income Taxes Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740. ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties, and disclosures required. The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.

Earnings per Share

Basic earnings per common share is computed by dividing net income available to common shareholders by the weighted-average number of common shares outstanding during the period, excluding unallocated ESOP shares. Diluted earnings per common share reflects additional common shares that would have been outstanding if dilutive potential common shares, including stock options and restricted stock units, had been issued. Potential common shares are excluded when their effect would be antidilutive.

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and share awards, to be recognized as expense in the consolidated statements of income based on their fair values. The amount of compensation is measured at the fair value of the options or share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or share awards.

Index

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale debt securities, are reported as a separate component of the equity section of the consolidated statements of financial conditions along with net income, they are components of comprehensive income.

Index

2.	Securities

The following tables summarize the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at September 30, 2026 and June 30, 2026 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

September 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available-for-sale
Mortgage-backed securities: residential	$	48,989	$	-	$	3,939	$	45,050
State and political subdivision		476		-		27		449
Total available-for-sale	$	49,465	$	-	$	3,966	$	45,499

September 30, 2026	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held-to-maturity
Mortgage-backed securities: residential	$	53,033	$	-	$	10,308	$	42,725
State and political subdivision		1,030		-		89		941
Total held-to-maturity	$	54,063	$	-	$	10,397	$	43,666

June 30, 2026	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Available-for-sale
Mortgage-backed securities: residential	$	45,505	$	22	$	2,375	$	43,152
State and political subdivision		475		-		3		472
Total available-for-sale	$	45,980	$	22	$	2,378	$	43,624

June 30, 2026	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
	(In Thousands)
Held-to-maturity
Mortgage-backed securities: residential	$	54,404	$	-	$	8,738	$	45,666
State and political subdivision		1,035		-		43		992
Total held-to-maturity	$	55,439	$	-	$	8,781	$	46,658

The amortized cost and fair value of debt securities are shown by contractual maturity. Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties.

September 30, 2026	Amortized Cost		Fair Value
	(In Thousands)
Available-for-sale
One to five years	$	3,360	$	3,199
Five to ten years		13,932		13,004
Beyond ten years		32,173		29,296
Total available-for-sale	$	49,465	$	45,499

Held-to-maturity
Five to ten years	$	12,333	$	10,521
Beyond ten years		41,730		33,145
Total held-to-maturity	$	54,063	$	43,666

Index

The following tables summarize debt securities available-for-sale in an unrealized loss position for which an allowance for credit losses has not been recorded at September 30, 2026 and June 30, 2026, aggregated by major security type and length of time in a continuous unrealized loss position:

	Less Than 12 Months				12 Months or Longer				Total
September 30, 2026	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Available-for-sale
Mortgage-backed securities: residential	$	23,342	$	982	$	20,855	$	2,957	$	44,197	$	3,939
State and political subdivision		449		27		-		-		449		27
Total available-for-sale	$	23,791	$	1,009	$	20,855	$	2,957	$	44,646	$	3,966

	Less Than 12 Months				12 Months or Longer				Total
June 30, 2026	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(In Thousands)
Available-for-sale
Mortgage-backed securities: residential	$	16,988	$	277	$	22,301	$	2,098	$	39,289	$	2,375
State and political subdivision		472		3		-		-		472		3
Total available-for-sale	$	17,460	$	280	$	22,301	$	2,098	$	39,761	$	2,378

At September 30, 2026, the Company’s security portfolio consisted of 96 securities, 88 of which were in an unrealized loss position. At June 30, 2026, the Company’s security portfolio consisted of 96 securities, 82 of which were in an unrealized loss position. The unrealized losses on the Company’s investment in mortgage-backed securities at September 30, 2026 and June 30, 2026 were caused by interest rate changes. The contractual cash flows of these investments are guaranteed by agencies of the U.S. government. Accordingly, it is expected that these securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the decline in fair value is attributable to interest rates rather than credit quality, the Company determined that no allowance for credit losses was required on these securities at September 30, 2026.

At September 30, 2026 and June 30, 2026, securities with a carrying value of $21.789 million and $22.385 million, respectively, were pledged to secure certain deposits, borrowings, and other liabilities.

Index

3.	Loans Receivable

Loans receivable are summarized as follows:

	September, 2026			June 30, 2026
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	160,407		$	164,214
Commercial		142,751			141,002
Multi-Family Residential		35,506			30,641
Land		34,154			34,825
Construction		31,117			25,435
Equity and Second Mortgage		3,074			3,177
Equity Lines of Credit		23,207			21,657

Total Mortgage Loans		430,216			420,951

Commercial Loans		57,832			58,866
Consumer Loans
Loans on Savings Accounts		1,074			436
Other Consumer Loans		198			247

Total Consumer Loans		1,272			683
Total Loans		489,320			480,500

Less: Allowance for Credit Losses		(4,902	)		(4,926	)
Unamortized Loan Fees		(86	)		(83	)

Net Loans Receivable	$	484,332		$	475,491

Index

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans according to credit risk. Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until: (a) they become past due; (b) management becomes aware of a deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification. In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.

The Company uses the following definitions for risk ratings:

•

Pass - Loans classified as pass are well protected by the current net worth or paying capacity of the obligor or by the fair value, less cost to acquire and sell the underlying collateral in a timely manner.

•

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

•

Index

The following tables summarize designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2026

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	14,125	$	14,232	$	12,708	$	34,280	$	28,497	$	51,560	$	-	$	155,402
Pass watch		-		71		806		385		509		1,407		-		3,178
Special mention		-		-		229		-		-		862		-		1,091
Substandard	$	-	$	-	$	153	$	181	$	194	$	208	$	-	$	736
Total one-to-four family residential	$	14,125	$	14,303	$	13,896	$	34,846	$	29,200	$	54,037	$	-	$	160,407
Current period gross charge-offs		-		-		-		-		-		-		-		-

Commercial
Risk rating
Pass	$	18,688	$	24,423	$	5,845	$	8,984	$	20,436	$	56,710	$	-	$	135,086
Pass watch		-		-		71		-		5,348		101		-		5,520
Special mention		-		-		-		99		2,032		-		-		2,131
Substandard		-		-		-		-		14		-		-		14
Total commercial	$	18,688	$	24,423	$	5,916	$	9,083	$	27,830	$	56,811	$	-	$	142,751
Current period gross charge-offs	$	-	$	435	$	12	$	-	$	-	$	-	$	-	$	447

Multi-family residential
Risk rating
Pass	$	6,040	$	7,461	$	-	$	-	$	316	$	14,659	$	-	$	28,476
Pass watch		-		-		1,108		1,787		-		4,135		-		7,030
Total multi-family residential	$	6,040	$	7,461	$	1,108	$	1,787	$	316	$	18,794	$	-	$	35,506
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk rating
Pass	$	5,137	$	9,945	$	2,111	$	1,745	$	3,230	$	11,986	$	-	$	34,154
Total land	$	5,137	$	9,945	$	2,111	$	1,745	$	3,230	$	11,986	$	-	$	34,154
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk rating
Pass	$	6,385	$	19,036	$	5,260	$	-	$	-	$	436	$	-	$	31,117
Total construction	$	6,385	$	19,036	$	5,260	$	-	$	-	$	436	$	-	$	31,117
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Index

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of September 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
Equity loans and lines of credit and second mortgage
Risk rating
Pass	$	442	$	551	$	526	$	357	$	589	$	383	$	22,911	$	25,759
Special mention		-		-		-		84		-		-		71		155
Substandard		-		-		-		142		-		-		225		367
Total home equity and lines of credit and second mortgage	$	442	$	551	$	526	$	583	$	589	$	383	$	23,207	$	26,281
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Loans
Risk rating
Pass	$	13,763	$	10,892	$	14,599	$	5,270	$	1,544	$	10,787	$	-	$	56,855
Pass watch		10		-		558		6		294		-		-		868
Special mention		-		-		-		105		-		-		-		105
Substandard		-		-		-		-		-		4		-		4
Total commercial loans	$	13,773	$	10,892	$	15,157	$	5,381	$	1,838	$	10,791	$	-	$	57,832
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer Loans
Risk rating
Pass	$	845	$	139	$	138	$	32	$	37	$	78	$	-	$	1,269
Substandard		-		-		-		3		-		-		-		3
Total consumer loans	$	845	$	139	$	138	$	35	$	37	$	78	$	-	$	1,272
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk rating
Pass	$	65,425	$	86,679	$	41,187	$	50,668	$	54,649	$	146,599	$	22,911	$	468,118
Pass watch		10		71		2,543		2,178		6,151		5,643		-		16,596
Special mention		-		-		229		288		2,032		862		71		3,482
Substandard		-		-		153		326		208		212		225		1,124
Total	$	65,435	$	86,750	$	44,112	$	53,460	$	63,040	$	153,316	$	23,207	$	489,320
Current period gross charge-offs	$	-	$	435	$	12	$	-	$	-	$	-	$	-	$	447

Index

The following tables summarize designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2026:

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	8,265	$	15,620	$	13,051	$	34,844	$	30,024	$	55,262	$	-	$	157,066
Pass watch		-		72		1,421		390		755		1,393		-		4,031
Special mention		-		-		-		-		-		841		-		841
Substandard		-		578		554		183		752		209		-		2,276
Total One-to-four family residential	$	8,265	$	16,270	$	15,026	$	35,417	$	31,531	$	57,705	$	-	$	164,214
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial
Risk rating
Pass	$	12,343	$	24,819	$	5,919	$	9,152	$	21,632	$	59,263	$	-	$	133,128
Pass watch		-		-		74		98		5,383		103		-		5,658
Special mention		-		-		-		-		2,052		150		-		2,202
Substandard		-		-		-		-		14		-		-		14
Total commercial	$	12,343	$	24,819	$	5,993	$	9,250	$	29,081	$	59,516	$	-	$	141,002
Current period gross charge-offs	$	-	$	-	$	-	$	60	$	-	$	145	$	-	$	205

Multi-family residential
Risk rating
Pass	$	-	$	6,969	$	-	$	1,801	$	319	$	16,286	$	-	$	25,375
Pass watch		-		-		1,112		-		-		4,154		-		5,266
Total multi-family residential	$	-	$	6,969	$	1,112	$	1,801	$	319	$	20,440	$	-	$	30,641
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk rating
Pass	$	4,415	$	9,846	$	2,308	$	1,737	$	3,331	$	13,031	$	-	$	34,668
Pass watch		-		157		-		-		-		-		-		157
Total land	$	4,415	$	10,003	$	2,308	$	1,737	$	3,331	$	13,031	$	-	$	34,825
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	10	$	-	$	-	$	10

Construction
Risk rating
Pass	$	1,746	$	17,896	$	5,113	$	580	$	-	$	100	$	-	$	25,435
Total construction	$	1,746	$	17,896	$	5,113	$	580	$	-	$	100	$	-	$	25,435
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Index

	Term Loans Amortized Cost by Origination Year												Revolving Lines
As of June 30, 2026	2026		2025		2024		2023		2022		Prior		Revolving Lines		Total
	(In Thousands)
Equity loans and lines of credit
Risk rating
Pass	$	444	$	559	$	538	$	415	$	599	$	394	$	21,361	$	24,310
Pass watch		-		-		-		-		-		-		-		-
Special mention		-		-		-		86		-		-		71		157
Substandard		-		-		-		142		-		-		225		367
Total home equity and lines of credit	$	444	$	559	$	538	$	643	$	599	$	394	$	21,657	$	24,834
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial Loans
Risk rating
Pass	$	9,235	$	9,460	$	14,841	$	4,410	$	1,906	$	13,516	$	-	$	53,368
Pass watch		623		1,827		1,080		1,500		317		-		-		5,347
Special mention		-		-		-		146		-		-		-		146
Substandard		-		-		-		-		-		5		-		5
Total commercial loans	$	9,858	$	11,287	$	15,921	$	6,056	$	2,223	$	13,521	$	-	$	58,866
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	16	$	-	$	-	$	16

Consumer Loans
Risk rating
Pass	$	124	$	169	$	187	$	50	$	43	$	106	$	-	$	679
Substandard		-		-		-		4		-		-		-		4
Total consumer loans	$	124	$	169	$	187	$	54	$	43	$	106	$	-	$	683
Current period gross charge-offs	$	-	$	1	$	23	$	1	$	-	$	-	$	-	$	25

Total
Risk rating
Pass	$	36,572	$	85,338	$	41,957	$	52,989	$	57,854	$	157,958	$	21,361	$	454,029
Pass watch		623		2,056		3,687		1,988		6,455		5,650		-		20,459
Special mention		-		-		-		232		2,052		991		71		3,346
Substandard		-		578		554		329		766		214		225		2,666
Total	$	37,195	$	87,972	$	46,198	$	55,538	$	67,127	$	164,813	$	21,657	$	480,500
Current period gross charge-offs	$	-	$	1	$	23	$	61	$	26	$	145	$	-	$	256

Index

The following tables present an aging analysis of past due loans, segregated by class of loans, as of September 30, 2026 and June 30, 2026:

September 30, 2026	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	537	$	1,713	$	633	$	2,883	$	157,524	$	160,407	$	-
Commercial		99		-		14		113		142,638		142,751		-
Multi-Family Residential		-		-		-		0		35,506		35,506		-
Land		-		24		-		24		34,130		34,154		-
Construction		-		-		-		0		31,117		31,117		-
Equity and Second Mortgage		-		-		142		142		2,932		3,074		-
Equity Lines of Credit		26		-		225		251		22,956		23,207		-
Commercial Loans		24		4		-		28		57,804		57,832		-
Consumer Loans		-		-		-		0		1,272		1,272		-
Total	$	686	$	1,741	$	1,014	$	3,441	$	485,879	$	489,320	$	-

June 30, 2026	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	780	$	389	$	2,607	$	3,776	$	160,438	$	164,214	$	453
Commercial		14		-		-		14		140,988		141,002		-
Multi-Family Residential		-		-		-		0		30,641		30,641		-
Land		-		-		-		0		34,825		34,825		-
Construction		-		-		-		0		25,435		25,435		-
Equity and Second Mortgage		-		-		142		142		3,035		3,177		-
Equity Lines of Credit		-		-		225		225		21,432		21,657		-
Commercial Loans		205		-		-		205		58,661		58,866		-
Consumer Loans		15		-		-		15		668		683		-
Total	$	1,014	$	389	$	2,974	$	4,377	$	476,123	$	480,500	$	453

There was no interest income recognized on non-accrual loans during the three months ended September 30, 2026, or the year ended June 30, 2026. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the three months ended September 30, 2026 and the year ended June 30, 2026 was approximately $23,000 and $120,000, respectively.

Index

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2026 and year ended June 30, 2026 was as follows:

September 30, 2026

	Real Estate Loans
	1-4 Family Residential			Commercial			Multi- Family		Land		Construction		Home Equity Loans and Lines of Credit		Commercial Loans		Consumer Loans		Total
	(In Thousands)
Allowance for credit losses:
Beginning Balances	$	2,349		$	1,277		$	108	$	248	$	195	$	190	$	541	$	18	$	4,926
Charge-Offs		-			(447	)		-		-		-		-		-		-		(447	)
Recoveries		1			140			-		1		-		1		2		3		148
Current Provision		(544	)		355			88		84		126		111		32		23		275
Ending Balances	$	1,806		$	1,325		$	196	$	333	$	321	$	302	$	575	$	44	$	4,902

June 30, 2026

	Real Estate Loans
	1-4 Family Residential		Commercial			Multi- Family			Land			Construction		Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans			Total
	(In Thousands)
Allowance for credit losses:
Beginning Balances	$	2,202	$	1,202		$	113		$	165		$	74	$	182		$	538		$	8		$	4,484
Charge-Offs		-		(205	)		-			(10	)		-		-			(16	)		(25	)		(256	)
Recoveries		6		60			-			2			-		22			2			12			104
Current Provision		141		220			(5	)		91			121		(14	)		17			23			594
Ending Balances	$	2,349	$	1,277		$	108		$	248		$	195	$	190		$	541		$	18		$	4,926

Index

The Company held loans that were individually evaluated for credit losses at September 30, 2026 and June 30, 2026 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty. The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date. The following describes the types of collateral that secure collateral dependent loans:

•

One-to-four-family first mortgages are primarily secured by first liens on residential real estate.

•

Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including self-storage facilities, hotels and restaurants.

•

Multi-family loans are primarily secured by residential property that include five or more housing units.

•

Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.

•

Home equity loans and lines are primarily secured by first and junior liens on residential real estate.

•

Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment.

•

Consumer loans considered collateral dependent are primarily secured by titled vehicles.

The following table presents loans individually evaluated for impairment, segregated by class of loans, as of September 30, 2026 and June 30, 2026:

	September 30, 2026				June 30, 2026
	Loan Balance		Specific Allocations		Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,815	$	53	$	3,364	$	505
Commercial		14		-		20		-
Land		77		3		79		3
Home Equity Loans and Lines of Credit		367		57		367		6
Commercial Loans		4		-		5		-

Total	$	2,277	$	113	$	3,835	$	514

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. As of September 30, 2026, there were $409,000 of residential loans in the process of foreclosure.

As of September 30, 2026, there were no loans whose terms were modified for borrowers who may be experiencing financial difficulties.

At September 30, 2026 and June 30, 2026, accrued interest receivable on loans was $1.711 million and $1.713 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

Deposits

Deposits at September 30, 2026 and June 30, 2026 consist of the following classifications:

	September 30, 2026		June 30, 2026
	(In Thousands)

Non-interest bearing accounts	$	140,651	$	138,059
NOW accounts		58,057		59,937
Money market accounts		59,130		65,978
Savings accounts		89,266		91,205
Certificates of deposit		227,819		222,113
Total deposits	$	574,923	$	577,292

Index

5.	Earnings Per Share

Basic earnings per common share is computed based on the weighted average number of shares outstanding. Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three months ended September 30, 2026 and 2025 were calculated as follows:

	Three Months Ended
	September 30,
	2026			2025
	(In Thousands, Except Per Share Data)

Net Income	$	1,911		$	1,599

Weighted average common shares issued and outstanding		3,035			3,071
Weighted average unearned ESOP shares		(51	)		(63	)
Weighted average shares outstanding - basic		2,984			3,008
Effect of dilutive common stock equivalents		84			40
Adjusted weighted average shares outstanding - diluted	$	3,068		$	3,048

Basic earnings per share	$	0.64		$	0.53
Diluted earnings per share	$	0.62		$	0.52

Index

6.	Stock-Based Compensation

Stock Incentive Plans

On November 12, 2014, the stockholders of the Company approved the adoption of the Company’s 2014 Stock Incentive Plan (the “2014 Stock Incentive Plan”). The 2014 Stock Incentive Plan terminated on August 13, 2024; however, the 960 unvested plan share awards and 33,000 outstanding options as of September 30, 2026, will remain in effect for the remainder of their five-year vesting and original ten-year terms, respectively.

On November 13, 2019, the stockholders of the Company approved the adoption of the Company’s 2019 Stock Incentive Plan (the “2019 Stock Incentive Plan”). On July 24, 2024, the Company granted 1,600 stock options to a key employee vesting ratably over five years. The 2019 Stock Incentive Plan costs are recognized over the five-year vesting period. As of September 30, 2026, there are no plan share awards and 800 stock options available for future grant under the 2019 Stock Incentive Plan. There were no plan share awards and 138,904 outstanding options as of September 30, 2026, under the 2019 Stock Incentive Plan.

On November 19, 2025, the stockholders of the Company approved the adoption of the Company’s 2025 Stock Incentive Plan (the “2025 Stock Incentive Plan,” together with the 2014 Stock Incentive Plan and the 2019 Stock Incentive Plan, the “Stock Incentive Plans”) which provides for a total of 125,000 shares reserved for future issuance as stock awards or stock options. No more than 31,250 shares, or 25%, may be granted as stock awards. The balance of the plan is reserved for stock option awards. On December 18, 2025, the Company granted a total of 31,250 plan share awards and a total of 92,750 stock options to directors, officers and key employees vesting ratably over five years. The 2025 Stock Incentive Plan costs are recognized over the five-year vesting period. As of September 30, 2026, there are no plan share awards and 1,000 stock options available for future grant under the 2025 Stock Incentive Plan. There were 31,250 unvested plan share awards and 92,750 outstanding options as of September 30, 2026, under the 2025 Stock Incentive Plan.

For the three months ended September 30, 2026 and 2025, the Company recognized compensation expense of $58,551 and $55,648, respectively, related to its Stock Incentive Plans.

7.	Related Party Transactions

In the ordinary course of business, the Bank makes loans to its directors and officers. These loans are made on substantially the same terms and conditions, including interest rates and collateral, as those prevailing at the same time for comparable transactions with other customers and do not involve more than normal credit risk or present other unfavorable features. Certain directors and executive officers were indebted to the Bank in the approximate aggregate amount of $4.429 million and $4.463 million at September 30, 2026 and June 30, 2026.

Index

8.	Fair Value Disclosures

The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques. The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments:

Cash and Cash Equivalents

The carrying amount approximates the fair value of cash and cash equivalents.

Investment Securities

Fair values for investment securities, including mortgage-backed securities, are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The carrying values of restricted or non-marketable equity securities approximate their fair values. The carrying amount of accrued investment income approximates its fair value.

Mortgage Loans Held-for-Sale

Because these loans are normally disposed of within ninety days of origination, their carrying value closely approximates the fair value of such loans.

Loans Receivable

For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value. Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.

Other Real Estate Owned

Other real estate owned, which is obtained through the foreclosure process, is valued utilizing the appraised collateral value. Collateral values are estimated using level II inputs based on observable market data or Level III inputs based on customizing discounting criteria.

Deposit Liabilities

The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts. Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate is estimated using the rates currently offered for deposits of similar maturities.

Advances from Federal Home Loan Bank and Other Borrowings

The carrying amount of short-term borrowings approximates their fair value. The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.

Index

At September 30, 2026 and June 30, 2026, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	September 30, 2026
	Carrying		Estimated
	Value		Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets
Cash and cash equivalents	$	37,560	$	37,560	$	37,560	$	-	$	-
Securities available-for-sale		45,499		45,499		-		45,499		-
Securities held-to-maturity		54,063		43,666		-		43,666		-
Other securities		1,111		1,111		-		-		1,111
Loans held-for-sale		1,082		1,082		-		1,082		-
Loans receivable, net		484,332		469,162		-		-		469,162

Financial liabilities
Deposits		574,923		573,847		-		573,847		-
Other borrowings		3,556		3,556		-		3,556		-

	June 30, 2026
	Carrying		Estimated
	Value		Fair Value		Level 1		Level 2		Level 3
	(In Thousands)
Financial assets
Cash and cash equivalents	$	34,304	$	34,304	$	34,304	$	-	$	-
Securities available-for-sale		43,624		43,624		-		43,624		-
Securities held-to-maturity		55,439		46,658		-		46,658		-
Other securities		954		954		-		-		954
Loans held-for-sale		1,654		1,654		-		1,654		-
Loans receivable, net		475,491		458,421		-		-		458,421

Financial liabilities
Deposits		577,292		575,788		-		575,788		-
Other borrowings		3,556		3,556		-		3,556		-

Index

The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.

ASC 820 was issued to establish a uniform definition of fair value. The definition of fair value is market-based as opposed to company-specific and includes the following:

•

Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value;

•

Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date;

•

Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique;

•

Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and

•

Expands disclosures about instruments that are measured at fair value.

The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy favors the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:

•

Level 1 – Fair value is based upon quoted prices unadjusted for identical assets or liabilities in active markets in which the Company can participate.

•

Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability; or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

•

Level 3 – Fair value is based upon inputs that are unobservable for the asset or liability. These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk). These inputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The preceding methods described may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used during the three months ended September 30, 2026.

Index

Fair values of assets and liabilities measured on a recurring basis at September 30, 2026 and June 30, 2026 are as follows:

	Fair Value Measurements
September 30, 2026	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Mortgage-backed securities: residential	$	-	$	45,050	$	-	$	45,050
State and political subdivision		-		449		-		449
Total available-for-sale	$	-	$	45,499	$	-	$	45,499

	Fair Value Measurements
June 30, 2026	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Mortgage-backed securities: residential	$	-	$	43,152	$	-	$	43,152
State and political subdivision		-		472		-		472
Total available-for-sale	$	-	$	43,624	$	-	$	43,624

Fair values of assets and liabilities measured on a non-recurring basis at September 30, 2026 and June 30, 2026 are as follows:

	Fair Value Measurements
September 30, 2026	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans	$	-	$	-	$	1,500	$	1,500
Other Real Estate Owned		-		-		513		513
Total	$	-	$	-	$	2,013	$	2,013

	Fair Value Measurements
June 30, 2026	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans	$	-	$	-	$	2,644	$	2,644
Other Real Estate Owned		-		-		613		613
Total	$	-	$	-	$	3,257	$	3,257

Index

Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches with terms extending through 2058. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of condition. Right-of-use (“ROU”) assets and corresponding lease liabilities are recognized on the consolidated statements of condition under other assets and other accrued expenses and liabilities, respectively.

The calculated amount of the ROU assets and lease liabilities in the table below are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term.

At September 30, 2026 and June 30, 2026, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows:

	Location in the Consolidated Balance Sheets	September 30, 2026			June 30, 2026
Operating lease right-of-use assets	Other assets	$	780		$	784
Operating lease liabilities	Other liabilities	$	850		$	851
Weighted-average remaining lease term (in years)			32.1			32.4
Weighted-average discount rate			3.00	%		3.00	%

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The Company’s results of operations are primarily dependent on the results of Home 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 Shreveport, Louisiana and ten full-service branch offices located in Shreveport, Bossier City, Benton and Minden, Louisiana. The Company’s primary market area is the Shreveport-Bossier City-Minden combined statistical area.

Critical Accounting Policies

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. Critical accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

There were no changes made to the Company’s internal control over financial reporting that occurred during the quarter ended September 30, 2026 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Allowance for Credit Losses. The Company has identified the calculation of the allowance for credit losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies.

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.

Index

Discussion of Financial Condition Changes from June 30, 2026 to September 30, 2026

General

Total assets increased $12.234 million, or 1.9%, from $643.330 million at June 30, 2026 to $655.564 million at September 30, 2026. The increase in assets resulted from increases in net loans receivable of $8.841 million, or 1.9%, from $475.491 million at June 30, 2026 to $484.332 million at September 30, 2026, cash and cash equivalents of $3.256 million, or 9.5%, from $34.304 million at June 30, 2026 to $37.560 million at September 30, 2026, investment securities of $656,000, or 0.7%, from $100.017 million at June 30, 2026 to $100.673 million at September 30, 2026, deferred tax asset of $432,000, or 40.8%, from $1.058 million at June 30, 2026 to $1.490 million at September 30, 2026, bank owned life insurance of $28,000, or 0.4%, from $7.040 million at June 30, 2026 to $7.068 million at September 30, 2026, and accrued interest receivable of $14,000, or 0.7%, from $1.895 million at June 30, 2026 to $1.909 million at September 30, 2026, partially offset by decreases in loans-held-for-sale of $572,000, or 34.6%, from $1.654 million at June 30, 2026 to $1.082 million at September 30, 2026, premises and equipment of $153,000, or 0.9%, from $16.173 million at June 30, 2026 to $16.020 million at September 30, 2026, other assets of $118,000, or 8.3%, from $1.420 million at June 30, 2026 to $1.302 million at September 30, 2026, other real estate owned of $100,000, or 16.3%, from $613,000 at June 30, 2026 to $513,000 at September 30, 2026, and core deposit intangible of $50,000, or 7.4%, from $675,000 at June 30, 2026 to $625,000 at September 30, 2026. The increase in deferred tax asset was primarily due to the tax effect of increased unrealized losses on available-for-sale securities.

Cash and Cash Equivalents

Cash and cash equivalents increased $3.256 million, or 9.5%, from $34.304 million at June 30, 2026 to $37.560 million at September 30, 2026.

Loans Receivable, Net

Loans receivable, net, increased by $8.841 million, or 1.9%, to $484.332 million at September 30, 2026 compared to $475.491 million at June 30, 2026. The increase in loans receivable, net was primarily due to increases in construction loans of $5.682, multi-family residential loans of $4.865 million, commercial real estate loans of $1.749 million, equity line-of-credit loans of $1.550 million, and consumer loans of $589,000, partially offset by decreases in one-to-four-family residential loans of $3.807 million, commercial non-real estate loans of $1.034 million, land loans of $671,000, and equity and second mortgage loans of $103,000.

Loans Held-for-Sale

Loans held-for-sale decreased $572,000 million, from $1.654 million at June 30, 2026 to $1.082 million at September 30, 2026. The decrease in loans held-for-sale is primarily due to normal timing differences in our loan origination and sale activities.

Investment Securities

Investment securities amounted to $100.673 million at September 30, 2026, compared to $100.017 million at June 30, 2026, an increase of $656,000, or 0.7%. The increase in investment securities was primarily due to security purchases of $6.934 million, partially offset by $3.251 million of principal repayments on mortgage backed securities, $1.653 million in proceeds from sales of mortgage backed securities, and a $1.610 million increase in market value losses on available-for-sale securities.

Premises and Equipment, Net

Premises and equipment, net decreased $153,000, or 0.9%, to $16.020 million at September 30, 2026 compared to $16.173 million at June 30, 2026, due to depreciation.

Index

Asset Quality

At September 30, 2026, the Company had $1.556 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 $3.649 million of non-performing assets at June 30, 2026, consisting of seven one-to-four family residential loans, two home equity loans, one commercial non-real estate loan, one commercial real estate loan, one commercial real estate property in other real estate owned, and two residential lots in other real estate owned at September 30, 2026, compared to sixteen one-to-four family residential loans, two home equity loans, one commercial non-real estate loan, one commercial real estate loan, one commercial real estate property in other real estate owned, and two residential lots in other real estate owned at June 30, 2026. At September 30, 2026 the Company had nine one-to-four family residential loans, two home equity loans, one commercial non-real estate loan, one commercial real estate loan, and one consumer loan classified as substandard, compared to sixteen one-to-four family residential loans, two home equity loans, one commercial real estate loan, one commercial non-real estate loan, and one consumer loan classified as substandard at June 30, 2026. There were no loans classified as doubtful at September 30, 2026 or June 30, 2026.

Total Liabilities

Total liabilities increased $12.236 million, or 2.1%, from $584.573 million at June 30, 2026 to $596.809 million at September 30, 2026. The increase in liabilities resulted from increases in advances from the Federal Home Loan Bank of Dallas of $14.000 million, from none at June 30, 2026 to $14.000 million at September 30, 2026, other accrued expenses and liabilities of $453,000, or 14.1%, from $3.214 million at June 30, 2026 to $3.667 million at September 30, 2026, and advances from borrowers for taxes and insurance of $152,000, or 29.7%, from $511,000 at June 30, 2026 to $663,000 at September 30, 2026, partially offset by a decrease in total deposits of $2.369 million, or 0.4%, from $577.292 million at June 30, 2026 to $574.923 million at September 30, 2026. The decrease in deposits resulted from decreases in money market deposits of $6.848 million, or 10.4%, from $65.978 million at June 30, 2026 to $59.130 million at September 30, 2026, savings deposits of $1.939 million, or 2.1%, from $91.205 million at June 30, 2026 to $89.266 million at September 30, 2026, and NOW accounts of $1.880 million, or 3.1%, from $59.937 million at June 30, 2026 to $58.057 million at September 30, 2026, partially offset by increases in certificates of deposit of $5.706 million, or 2.6%, from $222.113 million at June 30, 2026 to $227.819 million at September 30, 2026, and non-interest deposits of $2.592 million, or 1.9%, from $138.059 million at June 30, 2026 to $140.651 million at September 30, 2026.

Stockholders’ Equity

Stockholders’ equity decreased $2,000, from $58.757 million at June 30, 2026 to $58.755 million at September 30, 2026. The decrease in stockholders’ equity resulted from an increase in the Company’s accumulated other comprehensive loss of $1.271 million, dividends paid totaling $457,000, and stock repurchases of $346,000, partially offset by net income for the quarter ended September 30, 2026 of $1.911 million, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $125,000, and proceeds from the issuance of common stock from the exercise of stock options of $36,000.

Regulatory Capital

The Bank is subject to regulatory capital requirements established by the Office of the Comptroller of the Currency (“OCC”). Effective September 30, 2026, the Bank elected to utilize the Community Bank Leverage Ratio (“CBLR”) framework, which allows qualifying community banking organizations to satisfy regulatory capital requirements by maintaining a Tier 1 leverage ratio greater than 8.0%, in lieu of the generally applicable risk-based capital requirements. At September 30, 2026, the Bank’s CBLR was 9.34%, exceeding the required minimum of 8.0%. Accordingly, the Bank was considered well capitalized under the regulatory framework for prompt corrective action.

Index

Comparison of Operating Results for the Three Months Ended September 30, 2026 and 2025

General

The increase in net income for the three months ended September 30, 2026, as compared to the same period in 2025, resulted from an increase of $643,000, or 12.2%, in net interest income and an increase of $203,000, or 31.2%, in non-interest income, partially offset by an increase of $232,000, or 539.5%, in the provision for credit losses, an increase of $230,000, or 6.0%, in non-interest expense, and an increase of $72,000, or 17.2%, in the provision for income taxes.

Net Interest Income

The increase in net interest income for the three months ended September 30, 2026, as compared to the same period in 2025, resulted from an increase of $687,000, or 8.6%, in total interest income, partially offset by an increase of $44,000, or 1.6%, in total interest expense. The Company’s average interest rate spread was 3.17% for the three months ended September 30, 2026, compared to 2.99% for the three months ended September 30, 2025. The Company’s net interest margin was 3.83% for the three months ended September 30, 2026, compared to 3.63% for the three months ended September 30, 2025.

Provision for Credit Losses

The provision for credit losses for the three months ended September 30, 2026, compared to the same period in 2025, increased by $232,000 primarily due to an increase in net loans receivable.

Non-interest Income

The $203,000 increase in non-interest income for the three months ended September 30, 2026, compared to the same period in 2025, resulted from an increase of $204,000 in gain on sale of real estate, an increase of $46,000 in gain on sale of fixed assets, an increase of $12,000 in service charges on deposit accounts, and an increase of $1,000 in other non-interest income, partially offset by an increase of $52,000 in loss on sale of securities and a decrease of $8,000 in gain on sale of loans. The increase in gain on sale of real estate resulted from the bulk sale of 44 rental properties during the three months ended September 30, 2026.

Index

Non-interest Expense

The $230,000 increase in non-interest expense for the three months ended September 30, 2026, compared to the same period in 2025, resulted from increases of $138,000 in compensation and benefits, $100,000 in other real estate owned write-down expense, $76,000 in professional fees, $65,000 in audit and examination fees, $45,000 in advertising, and $11,000 in deposit insurance premium, partially offset by decreases of $100,000 in data processing, $46,000 in occupancy and equipment, $29,000 in franchise and bank shares tax, $17,000 in amortization of core deposit intangible, $9,000 in other expenses, and $4,000 in loan and collection expense. The $100,000 increase in other real estate owned write-down expense was related to the value of one large commercial property which was adjusted to reflect current market sentiment.

The aggregate compensation expense recognized by the Company for its stock options, share awards and employee stock ownership plan, amounted to $125,000 and $96,000 for the three months ended September 30, 2026 and September 30, 2025, respectively.

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings. For the three months ended September 30, 2026, the Company recognized franchise and bank shares tax expense of $106,000 compared to $135,000, for the same period in 2025.

Income Taxes

There was an income tax expense of $490,000 for the three months ended September 30, 2026, resulting in an effective tax rate of 20.4%. There was an income tax expense of $418,000 for the three months ended September 30, 2025, resulting in an effective tax rate of 20.7%.

Index

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.

	Three Months Ended September 30,
	2026							2025
	Average				Average			Average				Average
	Balance		Interest		Yield/Rate			Balance		Interest		Yield/Rate
(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	478,475	$	7,741		6.42	%	$	463,931	$	7,271		6.22	%
Investment securities		100,539		657		2.59			96,390		555		2.28
Interest-earning deposits		31,789		299		3.73			15,105		184		4.83
Total interest-earning assets	$	610,803	$	8,697		5.65	%	$	575,426	$	8,010		5.52	%
Non-interest-earning assets		38,263							39,797
Total assets	$	649,066						$	615,223
Interest-bearing liabilities:
Savings accounts	$	89,940	$	324		1.43	%	$	94,102	$	400		1.69	%
NOW accounts		63,072		171		1.08			65,801		188		1.13
Money market accounts		64,103		322		1.99			73,599		384		2.07
Certificate accounts		225,093		1,912		3.37			194,016		1,701		3.48
Total interest-bearing deposits		442,208		2,729		2.45			427,518		2,673		2.48
Other borrowings		3,556		62		6.92			4,000		76		7.54
FHLB advances		152		2		5.22			-		-		-
Total interest-bearing liabilities	$	445,916	$	2,793		2.48	%	$	431,518	$	2,749		2.53	%
Non-interest-bearing liabilities:
Non-interest-bearing demand accounts		139,158							123,401
Other liabilities		4,355							4,545
Total liabilities		589,429							559,464
Total stockholders’ equity (1)		59,637							55,759

Total liabilities and stockholders’ equity	$	649,066						$	615,223

Net interest-earning assets	$	164,887						$	143,908

Net interest income; average interest rate spread(2)			$	5,904		3.17	%			$	5,261		2.99	%
Net interest margin(3)						3.83	%						3.63	%
Average interest-earning assets to average interest-bearing liabilities						136.98	%						133.35	%

(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.

Index

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 the Federal Home Loan Bank of Dallas amounted to $28.158 million at September 30, 2026.

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, 2026, the Bank had $14.000 million in advances from the Federal Home Loan Bank of Dallas and had $142.231 million in borrowing capacity. Additionally, at September 30, 2026, 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, 2026. At September 30, 2026, Home Federal Bancorp had a $3.556 million outstanding loan with First National Bankers Bank, which matures on February 5, 2034.

At September 30, 2026, the Bank had outstanding loan commitments of $52.622 million to originate loans and commitments under unused lines of credit of $15.691 million. At September 30, 2026, certificates of deposit scheduled to mature in less than one year totaled $149.059 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.

Off-Balance Sheet Arrangements

At September 30, 2026, the Company did not have any off-balance sheet arrangements as defined by Securities and Exchange Commission rules.

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.

Index

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 the Securities 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 of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; legislative and regulatory changes; 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, 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.

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4.

CONTROLS AND PROCEDURES

Evaluation of Disclosures Controls and Procedures. Under the supervision and with the participation of our management including our President and Chief Executive Officer (principal executive officer) and our Chief Financial Officer (principal financial officer), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the President and Chief Executive Officer and the Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported within the applicable time periods specified by the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control over Financial Reporting. There has been no change in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

PART II

ITEM 1.

LEGAL PROCEEDINGS

The Company is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business which involve amounts in the aggregate believed by management to be immaterial to the financial condition of the Company.

ITEM 1A.

RISK FACTORS

Not applicable.

ITEM 2.

UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a)	Not applicable.

(b)	Not applicable.

(c)	Purchases of Equity Securities

The table below sets forth the Company’s repurchases of its common stock made during the quarter ended September 30, 2026, are set forth in the table below, including stock-for-stock option exercises.

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs (a)
July 1, 2026 - July 31, 2026		6,515	$	21.95		6,515		18,179
August 1, 2026 - August 31, 2026		8,662		23.41		8,662		9,517
September 1, 2026 - September 30, 2026		-		-		-		9,517
Total		15,177	$	22.78		15,177		9,517

Notes to this table:

(a)	On October 15, 2025, the Company announced that its Board of Directors approved the fourteenth stock repurchase program for the repurchase of up to 100,000 shares. The fourteenth stock repurchase program does not have an expiration date.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 3.

DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.

MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.

OTHER INFORMATION

Not applicable.

ITEM 6.

EXHIBITS

No.		Description
31.1		Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2		Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0		Certification Pursuant to 18 U.S.C Section 1350
101.INS		Inline XBRL Instance Document
101.SCH		Inline XBRL Taxonomy Extension Schema Document
101.CAL		Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB		Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE		Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF		Inline XBRL Taxonomy Extension Definitions Linkbase Document
104		Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

Index

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOME FEDERAL BANCORP, INC. OF LOUISIANA

Date: November 12, 2026	By:	/s/ Brad Ezernack
		Brad Ezernack
		Executive Vice President and Chief Financial Officer
		(Duly authorized officer and principal financial and accounting officer)