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, 2025

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

For the transition period from

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 6, 2025: The registrant had 3,088,261 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	34

Item 3:	Quantitative and Qualitative Disclosures About Market Risk	41

Item 4:	Controls and Procedures	41

PART II	OTHER INFORMATION

Item 1:	Legal Proceedings	42

Item 1A:	Risk Factors	42

Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	42

Item 3:	Defaults Upon Senior Securities	42

Item 4:	Mine Safety Disclosures	42

Item 5:	Other Information	42

Item 6:	Exhibits	43

SIGNATURES

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED BALANCE SHEETS

(In thousands except share and per share data)

	September 30, 2025			June 30, 2025
	(Unaudited)
ASSETS

Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $16,563 and $10,380 at September 30, 2025 and June 30, 2025, Respectively)	$	26,492		$	17,347
Securities Available-for-Sale (amortized cost September 30, 2025: $39,277; June 30, 2025: $36,695, Respectively)		37,329			34,246
Securities Held-to-Maturity (fair value September 30, 2025: $50,841; June 30, 2025: $51,139, Respectively)		59,794			61,334
Other Securities		654			650
Loans Held-for-Sale		1,316			1,540
Loans Receivable, Net of Allowance for Credit Losses (September 30, 2025: $4,387; June 30, 2025: $4,484, Respectively)		464,356			461,004
Accrued Interest Receivable		1,854			1,836
Premises and Equipment, Net		17,008			17,266
Bank Owned Life Insurance		6,954			6,926
Goodwill		2,990			2,990
Core Deposit Intangible		848			915
Deferred Tax Asset		1,043			1,163
Real Estate Owned		783			970
Other Assets		1,209			1,305

Total Assets	$	622,630		$	609,492

LIABILITIES AND STOCKHOLDERS’ EQUITY

LIABILITIES

Deposits:
Non-interest bearing	$	127,441		$	122,416
Interest-bearing		429,747			423,874
Total Deposits		557,188			546,290
Advances from Borrowers for Taxes and Insurance		787			543
Other Borrowings		4,000			4,000
Other Accrued Expenses and Liabilities		4,064			3,454

Total Liabilities		566,039			554,287

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: 3,066,369 and 3,084,764 Shares Issued and Outstanding at September 30, 2025 and June 30, 2025, Respectively		32			32
Additional Paid-in Capital		42,259			42,187
Unearned ESOP Stock		(307	)		(321	)
Retained Earnings		16,146			15,241
Accumulated Other Comprehensive Loss		(1,539	)		(1,934	)

Total Stockholders’ Equity		56,591			55,205

TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	622,630		$	609,492

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF OPERATIONS

(In thousands except per share data)

(Unaudited)

	Three Months Ended
	September 30,
	2025		2024
INTEREST INCOME
Loans, including fees	$	7,271	$	6,895
Investment securities		13		67
Mortgage-backed securities		542		443
Other interest-earning assets		184		336
Total interest income		8,010		7,741

INTEREST EXPENSE
Deposits		2,673		3,197
Other bank borrowings		76		117
Total interest expense		2,749		3,314
Net interest income		5,261		4,427

PROVISION FOR (RECOVERY OF) CREDIT LOSSES		43		(223	)
Net interest income after provision for credit losses		5,218		4,650

NON-INTEREST INCOME
Gain on sale of loans		146		96
Loss on sale of real estate		-		(254	)
Income on bank owned life insurance		28		28
Service charges on deposit accounts		423		391
Other income		53		39

Total non-interest income		650		300

NON-INTEREST EXPENSE
Compensation and benefits		2,150		2,302
Occupancy and equipment		568		564
Data processing		336		219
Audit and examination fees		69		132
Franchise and bank shares tax		135		168
Advertising		29		57
Professional fees		85		117
Loan and collection		42		28
Amortization core deposit intangible		67		74
Deposit insurance premium		93		90
Other expenses		277		260
Total non-interest expense		3,851		4,011

Income before income taxes		2,017		939
PROVISION FOR INCOME TAX EXPENSE (BENEFIT)		418		(2	)

NET INCOME	$	1,599	$	941

EARNINGS PER SHARE
Basic	$	0.53	$	0.31
Diluted	$	0.52	$	0.31

See accompanying notes to consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(In Thousands)

	For the Three Months Ended September 30,
	2025			2024
	(Unaudited)

Net Income	$	1,599		$	941

Other Comprehensive Income, Net of Tax
Unrealized gains on securities available for sale:
Unrealized holding gains arising during the period		501			1,268
Income tax effect		(106	)		(266	)
Total Other Comprehensive Income, Net of Tax		395			1,002

Total Comprehensive Income	$	1,994		$	1,943

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, 2025 AND 2024

(In Thousands)

	Common Stock		Additional Paid-in Capital		Unearned ESOP Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
	(Unaudited)
BALANCE – June 30, 2024	$	32	$	41,739	$	(408	)	$	14,055		$	(2,615	)	$	52,803

ESOP Compensation Earned		-		40		29			-			-			69
Stock Options Exercised		-		19		-			-			-			19
Dividends Paid		-		-		-			(409	)		-			(409	)
Stock Options Vested		-		24		-			-			-			24
Company Stock Purchased		-		-		-			(182	)		-			(182	)
Net Income		-		-		-			941			-			941
Other Comprehensive Loss, Unrealized Gain on Debt Securities, Net of Tax		-		-		-			-			1,002			1,002

BALANCE – September 30, 2024	$	32	$	41,822	$	(379	)	$	14,405		$	(1,613	)	$	54,267


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

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	)
Net Income		-		-		-			1,599			-			1,599
Other Comprehensive Loss, Unrealized Gain on Debt Securities, Net of Tax		-		-		-			-			395			395

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

See accompanying notes to consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(In Thousands)

	Three Months Ended September 30,
	2025			2024
	(Unaudited)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,599		$	941
Adjustments to Reconcile Net Income to Net
Cash Provided by Operating Activities
Gain on Sale of Loans		(146	)		(96	)
Net Amortization and Accretion on Securities		(81	)		417
Amortization of Deferred Loan Fees		(13	)		(15	)
Amortization of Purchased Loans		(66	)		(75	)
Provision for (Recovery of) Loan Losses		43			(223	)
Depreciation of Premises and Equipment		266			222
Loss on Sales of Real Estate		-			254
ESOP Compensation Expense		40			69
Stock Option Expense		23			24
Deferred Income Tax Expense (Benefit)		14			(295	)
Increase in Cash Surrender Value on Bank Owned Life Insurance		(28	)		(29	)
Amortization Core Deposit Intangible		67			74
Changes in Assets and Liabilities:
Origination and Purchase of Loans Held-for-Sale		(6,399	)		(6,152	)
Sale and Principal Repayments on Loans Held-for-Sale		6,769			5,713
Accrued Interest Receivable		(18	)		14
Other Operating Assets		96			(224	)
Other Operating Liabilities		610			252

Net Cash Provided by Operating Activities		2,776			871

CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net		(4,117	)		17,122
Deferred Loan Fees Collected		2			4
Acquisition of Premises and Equipment		(8	)		(12	)
Proceeds from Sale of Premises and Equipment		-			28
Proceeds from Sale of Real Estate		996			70
Improvements to Real Estate Owned Prior to Disposition		(10	)		(28	)
Changes in Federal Home Loan Bank Stock		(4	)		(19	)
Activity in Available-for-Sale Securities:
Principal Payments on Securities		1,891			1,977
Purchase of Mortgage-Backed Securities		(4,386	)		(4,016	)
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities		1,534			1,495

Net Cash (Used in) Provided by Investing Activities		(4,102	)		16,621

See accompanying notes to consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(In Thousands)

	Three Months Ended
	September 30,
	2025			2024
	(Unaudited)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits	$	10,898		$	(9,447	)
Dividends Paid		(415	)		(409	)
Company Stock Purchased		(279	)		(182	)
Net Increase in Advances from Borrowers for Taxes and Insurance		244			123
Repayments of Other Bank Borrowings		-			(1,500	)
Proceeds from Stock Options Exercised		23			19

Net Cash Provided by (Used in) Financing Activities		10,471			(11,396	)

NET INCREASE IN CASH AND CASH EQUIVALENTS		9,145			6,096

CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	$	17,347		$	34,948

CASH AND CASH EQUIVALENTS - END OF PERIOD	$	26,492		$	41,044

SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	2,694		$	3,291
Transfer from Loans to Other Real Estate Owned		799			-
Income Taxes Paid		140			-

See accompanying notes to consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”). 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, 2025 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2026. 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, 2025 (the "Company's 2025 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, 2025. 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.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies (continued)

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, 2025, 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, 2025 and June 30, 2025.

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 is such situation. Accrued interest is receivable is excluded from the estimate of credit losses.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies (continued)

Securities (continued)

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.

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.

Allowance for Credit Losses

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.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies (continued)

Allowance for Credit Losses (continued)

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.

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.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies (continued)

Allowance for Credit Losses (continued)

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.

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.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies (continued)

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis. Each entity pays 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 basis 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. Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. 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 FASB 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 Company 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

Earnings per share are computed based upon the weighted average number of common shares outstanding during the period.

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.

Reclassification

Certain financial statement balances included in the prior year consolidated financial statements have been reclassified to conform to the current period presentation.

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

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

1. Summary of Accounting Policies (continued)

Recent Accounting Pronouncements

FASB ASC Topic 280 “Segment Reporting: Improvements to Reportable Segments Disclosures” Update No. 2023-07 (“ASU 2023-07”). ASU 2023-07 became effective for the Company for the fiscal year ended June 30, 2025 and will be applied in interim periods beginning after June 30, 2025. ASU 2023-07 requires public entities to disclose the title and position of the entity’s CODM and an explanation of how the CODM utilizes the reported measures of profit or loss to assess segment performance and allocate resources, significant segment expenses, an amount and description for other segment items, and, on an interim basis, certain segment related disclosures that previously were required only on an annual basis. ASU 2023-07 also clarifies that entities with a single reportable segment are subject to both new and existing segment reporting requirements and that an entity is permitted to disclose multiple measures of segment profit or loss, provided that certain criteria are met. The adoption of ASU 2023-07 did not have a material impact on the Company’s consolidated financial statements.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Securities

The amortized cost and fair value of securities with gross unrealized gains and losses follows:

	September 30, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	12,246	$	40	$	525	$	11,761
FNMA Mortgage-Backed Certificates		20,573		76		1,005		19,644
GNMA Mortgage-Backed Certificates		6,458		73		607		5,924

Total Debt Securities		39,277		189		2,137		37,329

Total Securities Available-for-Sale	$	39,277	$	189	$	2,137	$	37,329

Securities Held-to-Maturity

Debt Securities
FHLMC Mortgage-Backed Certificates	$	24,525	$	-	$	3,779	$	20,746
FNMA Mortgage-Backed Certificates		33,433		-		5,073		28,360
GNMA Mortgage-Backed Certificates		583		-		54		529

Total Debt Securities		58,541		-		8,906		49,635

Municipal Bonds		1,253		-		47		1,206


Total Securities Held-to-Maturity	$	59,794	$	-	$	8,953	$	50,841

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Securities (continued)

	June 30, 2025
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	11,038	$	20	$	627	$	10,431
FNMA Mortgage-Backed Certificates		19,180		9		1,228		17,961
GNMA Mortgage-Backed Certificates		6,112		47		670		5,489

Total Debt Securities		36,330		76		2,525		33,881

Municipal Bonds		365		-		-		365

Total Securities Available-for-Sale	$	36,695	$	76	$	2,525	$	34,246

Securities Held-to-Maturity

Debt Securities
FHLMC Mortgage-Backed Certificates	$	25,201	$	-	$	4,372	$	20,829
FNMA Mortgage-Backed Certificates		34,286		-		5,709		28,577
GNMA Mortgage-Backed Certificates		588		-		59		529

Total Debt Securities		60,075		-		10,140		49,935

Municipal Bonds		1,259		-		55		1,204

Total Securities Held-to-Maturity	$	61,334	$	-	$	10,195	$	51,139

The amortized cost and fair value of securities by contractual maturity at September 30, 2025 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)

Debt Securities
One through Five Years	$	894	$	876	$	-	$	-
After Five through Ten Years		7,442		7,059		374		367
Over Ten Years		30,941		29,394		58,167		49,268
		39,277		37,329		58,541		49,635


Municipal Bonds
Within One Year or Less	$	-	$	-	$	204	$	202
After Five through Ten Years		-		-		1,049		1,004
		-		-		1,253		1,206

Total	$	39,277	$	37,329	$	59,794	$	50,841

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Securities (continued)

The amortized cost and fair value of securities by contractual maturity at June 30, 2025, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)

Debt Securities
One through Five Years	$	8	$	8	$	-	$	-
After Five through Ten Years		8,842		8,379		394		383
Over Ten Years		27,480		25,494		59,681		49,552
		36,330		33,881		60,075		49,935

Municipal Bonds
Within One Year or Less		365		365		205		202
After Five through Ten Years		-		-		1,054		1,002
		365		365		1,259		1,204

Total	$	36,695	$	34,246	$	61,334	$	51,139

The following tables show information pertaining to gross unrealized losses on securities available-for-sale and held-to-maturity at September 30, 2025 and June 30, 2025 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 2025
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale

Mortgage-Backed Securities	$	34	$	2,329	$	2,103	$	22,975

Total Securities Available-for-Sale	$	34	$	2,329	$	2,103	$	22,975

	September 30, 2025
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Held-to-Maturity

Mortgage-Backed Securities	$	-	$	-	$	8,906	$	49,635
Municipals		-		-		47		1,206

Total Securities Held-to-Maturity	$	-	$	-	$	8,953	$	50,841

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

2. Securities (continued)

	June 30, 2025
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale

Mortgage-Backed Securities	$	226	$	8,499	$	2,299	$	17,879

Total Securities Available-for-Sale	$	226	$	8,499	$	2,299	$	17,879

	June 30, 2025
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Held-to-Maturity

Mortgage-Backed Securities	$	-	$	-	$	10,140	$	49,935
Municipals		-		-		55		1,204

Total Securities Held-to-Maturity	$	-	$	-	$	10,195	$	51,139

At September 30, 2025, the Company’s security portfolio consisted of 80 securities, 50 of which were in an unrealized loss position. At June 30, 2025, the Company’s security portfolio consisted of 74 securities, 53 of which were in an unrealized loss position. The unrealized losses on the Company’s investment in mortgage-backed securities at September 30, 2025 and June 30, 2025 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 market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at September 30, 2025.

At September 30, 2025 and June 30, 2025, securities with a carrying value of $23.921 million and $24.517 million, respectively, were pledged to secure certain deposits, borrowings, and other liabilities.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Loans Receivable

Loans receivable are summarized as follows:

	September 30, 2025			June 30, 2025
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	171,553		$	174,978
Commercial		140,019			138,920
Multi-Family Residential		33,472			32,283
Land		42,291			30,054
Construction		5,056			11,226
Equity and Second Mortgage		2,736			2,520
Equity Lines of Credit		20,494			20,354

Total Mortgage Loans		415,621			410,335

Commercial Loans		52,314			54,138
Consumer Loans
Loans on Savings Accounts		529			381
Other Consumer Loans		373			739

Total Consumer Other Loans		902			1,120
Total Loans		468,837			465,593

Less: Allowance for Credit Losses		(4,387	)		(4,484	)
Unamortized Loan Fees		(94	)		(105	)

Net Loans Receivable	$	464,356		$	461,004

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.

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 and are still considered a pass.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Loans Receivable (continued)

Credit Quality Indicators (continued)

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 institution 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.

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Loans Receivable (continued)

Credit Quality Indicators (continued)

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2025:

	Term Loans Amortized Cost by Origination Year												Revolving
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	16,220	$	19,409	$	38,942	$	33,496	$	29,612	$	26,688	$	-	$	164,367
Pass watch		1,613		1,375		517		1,136		254		482		-		5,377
Special mention		-		39		-		-		377		251		-		667
Substandard		-		-		322		241		500		79		-		1,142
Total one-to-four family residential	$	17,833	$	20,823	$	39,781	$	34,873	$	30,743	$	27,500	$	-	$	171,553
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial
Risk rating
Pass	$	32,364	$	11,752	$	14,423	$	30,276	$	35,295	$	12,920	$	-	$	137,030
Pass watch		2,389		81		99		403		-		-		-		2,972
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		17		-		-		-		17
Total commercial	$	34,753	$	11,833	$	14,522	$	30,696	$	35,295	$	12,920	$	-	$	140,019
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	145	$	-	$	-	$	145

Multi-family residential
Risk rating
Pass	$	4,796	$	3,934	$	121	$	4,858	$	928	$	15,806	$	-	$	30,443
Pass watch		1,207		-		1,822		-		-		-		-		3,029
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total multi-family residential	$	6,003	$	3,934	$	1,943	$	4,858	$	928	$	15,806	$	-	$	33,472
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk rating
Pass	$	16,429	$	13,450	$	3,105	$	2,549	$	3,535	$	955	$	-	$	40,023
Pass watch		255		1,981		-		-		8		-		-		2,244
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		24		-		-		-		24
Total land	$	16,684	$	15,431	$	3,105	$	2,573	$	3,543	$	955	$	-	$	42,291
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Loans Receivable (continued)

Credit Quality Indicators (continued)

	Term Loans Amortized Cost by Origination Year
As of September 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Lines		Total
	(In Thousands)

Construction
Risk rating
Pass	$	1,793	$	2,518	$	-	$	-	$	-	$	-	$	-	$	4,311
Pass watch		-		745		-		-		-		-		-		745
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Total construction	$	1,793	$	3,263	$	-	$	-	$	-	$	-	$	-	$	5,056
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Equity loans and lines of credit
Risk rating
Pass	$	350	$	571	$	483	$	630	$	94	$	359	$	20,197	$	22,684
Pass watch		-		-		10		-		-		-		-		10
Special mention		-		-		-		-		-		-		72		72
Substandard		-		-		239		-		-		-		225		464
Total home equity and lines of credit	$	350	$	571	$	732	$	630	$	94	$	359	$	20,494	$	23,230
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Commercial loans
Risk rating
Pass	$	11,635	$	19,210	$	7,031	$	3,641	$	2,610	$	4,121	$	-	$	48,248
Pass watch		759		8		63		52		-		-		-		882
Special mention		2,401		169		577		-		-		-		-		3,147
Substandard		-		-		-		23		14		-		-		37
Total commercial loans	$	14,795	$	19,387	$	7,671	$	3,716	$	2,624	$	4,121	$	-	$	52,314
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Consumer loans
Risk rating
Pass	$	245	$	288	$	108	$	76	$	1	$	149	$	-	$	867
Pass watch		-		-		-		-		-		-		-		-
Special mention		-		28		-		-		-		-		-		28
Substandard		-		-		7		-		-		-		-		7
Total consumer loans	$	245	$	316	$	115	$	76	$	1	$	149	$	-	$	902
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Total
Risk rating
Pass	$	83,832	$	71,132	$	64,213	$	75,526	$	72,075	$	60,998	$	20,197	$	447,973
Pass watch		6,223		4,190		2,511		1,591		262		482		-		15,259
Special mention		2,401		236		577		-		377		251		72		3,914
Substandard		-		-		568		305		514		79		225		1,691
Total	$	92,456	$	75,558	$	67,869	$	77,422	$	73,228	$	61,810	$	20,494	$	468,837
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	145

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Loans Receivable (continued)

Credit Quality Indicators (continued)

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of June 30, 2025:

	Term Loans Amortized Cost by Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	12,456	$	20,344	$	40,116	$	35,296	$	30,282	$	28,952	$	-	$	167,446
Pass and Watch		1,072		1,358		1,088		1,379		257		629				5,783
Special mention		-		40		-		-		379		314		-		733
Substandard		-		-		268		252		496		-		-		1,016
Total one-to-four family residential	$	13,528	$	21,742	$	41,472	$	36,927	$	31,414	$	29,895	$	-	$	174,978
Current period gross charge-offs	$	-	$	-	$	34	$	-	$	-	$	-	$	-	$	34

Commercial
Risk rating
Pass	$	21,880	$	12,736	$	17,394	$	32,791	$	36,221	$	13,823	$	-	$	134,845
Pass and Watch		114		2,488		98		408		-		-		-		3,108
Substandard		-		-		-		19		948		-		-		967
Total commercial	$	21,994	$	15,224	$	17,492	$	33,218	$	37,169	$	13,823	$	-	$	138,920
Current period gross charge-offs	$	-	$	-	$	154	$	-	$	90	$	-	$	-	$	244

Multi-family residential
Risk rating
Pass	$	498	$	6,854	$	1,969	$	4,871	$	942	$	15,942	$	-	$	31,076
Pass and Watch		1,207		-		-		-		-		-		-		1,207
Total multi-family residential	$	1,705	$	6,854	$	1,969	$	4,871	$	942	$	15,942	$	-	$	32,283
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Land
Risk rating
Pass	$	8,405	$	8,380	$	3,044	$	3,262	$	3,505	$	994	$	-	$	27,590
Pass and Watch		79		2,376		-		-		9		-		-		2,464
Total land	$	8,484	$	10,756	$	3,044	$	3,262	$	3,514	$	994	$	-	$	30,054
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Construction
Risk rating
Pass	$	7,192	$	3,054	$	-	$	-	$	-	$	-	$	-	$	10,246
Pass and Watch		-		980		-		-		-		-		-		980
Total construction	$	7,192	$	4,034	$	-	$	-	$	-	$	-	$	-	$	11,226
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

Equity loans and lines of credit
Risk rating
Pass	$	46	$	582	$	629	$	639	$	96	$	376	$	19,823	$	22,191
Pass and Watch		-		-		10		-		-		-		234		244
Special mention		-		-		-		-		-		-		72		72
Substandard		-		-		142		-		-		-		225		367
Total home equity and lines of credit	$	46	$	582	$	781	$	639	$	96	$	376	$	20,354	$	22,874
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	7	$	17	$	-	$	24

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

3. Loans Receivable (continued)

Credit Quality Indicators (continued)

	Term Loans Amortized Cost by Origination Year
As of June 30, 2025	2025		2024		2023		2022		2021		Prior		Revolving Lines		Total
	(In Thousands)
Commercial loans
Risk rating
Pass	$	6,742	$	21,685	$	9,317	$	4,100	$	2,973	$	4,756	$	-	$	49,573
Pass and Watch		762		8		70		70		-		-		-		910
Special mention		2,318		179		917		-		128		-		-

Home Federal Bancorp, Inc. of Louisiana 10-Q