Note 1. Summary of Significant Accounting Policies
Nature of Operations
On December 22, 2010, Home Federal Mutual Holding Company completed its second step conversion
from the mutual holding company form of organization to the fully public stock holding company structure pursuant to a Plan of Conversion and Reorganization. Upon completion of the conversion, Home Federal Bancorp, Inc. of Louisiana, a newly
formed Louisiana chartered corporation (the Company), became the holding company for Home Federal Bank (the Bank), and Home Federal Mutual Holding Company of Louisiana and Home Federal Bancorp, Inc. of Louisiana, a federally chartered
corporation, (the Mid-Tier Company) ceased to exist. As part of the conversion, all outstanding shares of the Mid-Tier Company common stock (other than those owned by Home Federal Mutual Holding Company) were converted into the right to receive
0.9110 of a share of the newly formed Home Federal Bancorp, Inc. of Louisiana common stock resulting in approximately 1,100,609 shares issued in the exchange and cash in lieu of fractional shares. In addition, a total of 1,945,220 shares of
common stock, par value $0.01 per share, of Home Federal Bancorp, Inc. of Louisiana were sold in subscription, community, and syndicated community offerings to certain depositors and borrowers of the Bank, the Bank’s Employee Stock Ownership
Plan, and other investors for $10.00 per share, or $19.5 million in aggregate. Treasury stock held was cancelled in the conversion. The net proceeds of the offering were approximately $18.0 million after offering expenses.
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 OCC). The Bank provides financial services to individuals, corporate entities, and other organizations through the origination of loans and the
acceptance of deposits in the form of passbook savings, certificates of deposit, and demand deposit accounts. Services are provided by seven branch offices, five of which are located in Shreveport, Louisiana and two in Bossier City, Louisiana.
The Bank’s home office is located in Shreveport, Louisiana.
The Bank is subject to competition from other financial institutions and to the regulations of
certain federal and state agencies and undergoes periodic examinations by those regulatory authorities.
Basis of Presentation and Consolidation
The consolidated financial statements include the accounts of the Company and its wholly-owned
subsidiary, Home Federal Bank. All significant intercompany balances and transactions have been eliminated.
Use of Estimates
In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United
States of America (GAAP), 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 periods. 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 loan
losses and deferred taxes.
Significant Group Concentrations of Credit Risk
Most of the Company’s activities are provided to customers of the Bank by seven branch offices,
five of which are located in the city of Shreveport, Louisiana and two in Bossier City, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in
a wider geographical area covering much of northwest Louisiana.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
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 have an original maturity date of ninety days or less.
At June 30, 2019 and 2018, cash and cash equivalents consisted of the following:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Cash on Hand
|
|
$
|
1,004
|
|
|
$
|
861
|
|
Demand Deposits at Other Institutions
|
|
|
14,329
|
|
|
|
6,206
|
|
Federal Funds Sold
|
|
|
2,775
|
|
|
|
8,800
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
18,108
|
|
|
$
|
15,867
|
|
Securities
Securities are being accounted for in accordance with Financial Accounting Standards Board
(FASB) Accounting Standards Codification (ASC) 320, Investments - Debt and Equity Securities. ASC 320 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 non-marketable equity securities and 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 and marketable equity securities that have readily determinable fair values 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 securities are excluded from earnings and reported in other comprehensive income.
The Company held no trading securities as of June 30, 2019 and 2018.
Purchase premiums and discounts are recognized in interest income using the interest method over the term of the
securities. Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses. In estimating other-than-temporary impairment
losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Company to retain its
investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value. Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.
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. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Loans Receivable
Loans receivable are stated at unpaid principal balances, less allowances
for loan losses and unamortized deferred loan fees. Net non-refundable 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 discounts are deferred and amortized on the interest method
over the life of the loan.
Allowance for Loan Losses
The allowance for loan losses is established as losses are estimated to
have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to
the allowance.
The allowance for loan losses is evaluated on a regular basis by management and is based
upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the
underlying collateral, and prevailing economic conditions. The evaluation is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available.
A loan is considered impaired when, based on current information or events, it is probable
that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. When a loan is impaired, the measurement of such impairment is based upon the fair
value of the collateral of the loan. If the fair value of the collateral is less than the recorded investment in the loan, the Bank will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.
A loan is considered a troubled debt restructuring (“TDR”) if the Company, for economic or legal reasons related to a debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted
under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan’s stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.
An allowance is also established for uncollectible interest on loans
classified as substandard. The allowance is established by a charge to interest income equal to all interest previously accrued, and income is subsequently recognized only to the extent that cash payments are received. When, in management’s
judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.
It should be understood that estimates of future loan losses involve an
exercise of judgment. While it is possible that in particular periods the Company may sustain losses, which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses
reflected in the accompanying statements of condition is adequate to absorb known and inherent losses in the existing loan portfolio both probable and reasonable to estimate.
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.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1.
|
Summary of Significant Accounting Policies (Continued)
|
Other Real Estate Owned
Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are carried
at the lower of cost or current fair value minus estimated cost 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 Company 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
Earnings per share are computed based upon the weighted average number of common shares
outstanding during the year.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1.
|
Summary of Significant Accounting Policies (Continued)
|
Non-Direct Response Advertising
The Company expenses all advertising costs, except for direct-response advertising, as
incurred. Non-direct response advertising costs were $362,000 and $185,000 for the years
ended June 30, 2019 and 2018, respectively.
In the event the Company incurs expense for material direct-response advertising, it will be amortized over
the estimated benefit period. Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future
benefits. For the years ended June 30, 2019 and 2018, the Company did not incur any amount of direct-response advertising.
Stock-Based Compensation
GAAP requires all share-based payments to employees, including grants of employee stock
options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values. The amount of compensation is measured at the fair value of the options or recognition and retention
share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards. This guidance applies to awards granted or modified after January
1, 2006, or any unvested awards outstanding prior to that date.
Reclassification
Certain financial statement balances included in the prior year consolidated financial statements have been
reclassified to conform to the current year presentation.
Comprehensive Income
Accounting principles generally 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 securities, are reported as a separate component of the equity section of the consolidated
balance sheets, such items, along with net income, are components of comprehensive income.
The components of other comprehensive income (loss) and related tax effects are as follows:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Gross Unrealized Holding Gains/(Losses) Arising During the Period
|
|
$
|
1,349
|
|
|
$
|
(790
|
)
|
Tax Effect
|
|
|
(283
|
)
|
|
|
96
|
|
|
|
|
|
|
|
|
|
|
Net Unrealized Holding Gains (Losses) Arising During the
Period
|
|
$
|
1,066
|
|
|
$
|
(694
|
)
|
The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as
follows:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Net Unrealized Gain (Loss) on Securities Available-for-Sale
|
|
$
|
26
|
|
|
$
|
(1,323
|
)
|
Tax Effect
|
|
|
(6
|
)
|
|
|
277
|
|
|
|
|
|
|
|
|
|
|
Net-of-Tax Amount
|
|
$
|
20
|
|
|
$
|
(1,046
|
)
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Recent Accounting Pronouncements
In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606): Revenue from Contracts with Customers. The amendments in ASU 2014-09 supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most
industry-specific guidance. The general principle of ASU 2014-09 requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to
be entitled in exchange for those goods or services. The guidance sets forth a five step approach to be utilized for revenue recognition. In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 making it
effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period. In March 2016, the FASB issued ASU 2016-08 which clarifies the implementation guidance on principal versus
agent considerations in Topic 606. In April 2016, the FASB issued ASU 2016-10 which does not change the core principle of the guidance in Topic 606. The amendments in this Update clarify the following two aspects of Topic 606: identifying
performance obligations and the licensing implementation guidance, while retaining the related principles for those areas. In May 2016, the FASB issued ASU 2016-12 which does not change the core principle of the guidance in Topic 606. In
December 2016, the FASB issued ASU 2016-20 which narrows the aspects of the guidance issued in Topic 606. The amendments in this Update affect only certain narrow aspects of Topic 606. The adoption of this standard did not have a material
impact on the Company’s consolidated financial statements.
In January 2016, the FASB issued ASU 2016-01, Financial Instruments. The amendments in this Update supersede the guidance to classify equity securities with readily determinable fair values into different categories and require equity securities to be
measured at fair value with changes in the fair value recognized through net income. The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an
observable price change or upon identification of impairment. The amendments in this Update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment
qualitatively at each reporting period. In addition, the amendments in this Update exempt all entities that are not public business entities from disclosing fair value information for financial instruments measured at amortized cost. In
addition, for public business entities, the amendments supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial
instruments measured at amortized cost on the balance sheet. The amendments in this Update require public business entities that are required to disclose fair value of financial instruments measured at amortized cost on the balance sheet to
measure that fair value using the exit price notion consistent with Topic 820, Fair Value Measurement. In February 2018, the FASB issued ASU 2018-03, Technical
Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities. The amendments in this Update include items brought to the FASB Board’s
attention regarding ASU 2016-01.
The provisions within this Update require an entity to present separately in other comprehensive income the
portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option. This
amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity. The amendments in this Update require
separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial
statements.
For public business entities, the amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard did not have a material
impact on the Company’s consolidated financial statements.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Recent Accounting Pronouncements (Continued)
In February 2016, the FASB issued ASU 2016-02, Leases. From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record ROU asset and a lease liability on the balance sheet for all leases with terms
longer than 12 months. Leases will be classified as either finance or operating, with classification affecting pattern of expense recognition in the income statement for a lessee.
The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods
within those fiscal years. A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the
consolidated financial statements, with certain practical expedients available. The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.
In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a
methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are SEC filers, the amendments in
this Update are effective for fiscal years beginning after December 15, 2019, including interim periods with those fiscal years. Management is currently assessing the impact to the Company’s consolidated financial statements.
In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20). This Update was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the
potential for exercise of a call is factored into current impairment assessments. As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over
the period not to exceed the earliest call date. These amendments do not apply to securities carried at a discount. The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The adoption of this guidance
is not expected to have a material effect on the Company’s consolidated financial statements.
In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718). The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification
accounting in FASB ASC 718. The effective date of this Update is for fiscal years beginning after December 15, 2018. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to
have a material effect on the Company’s consolidated financial statements.
In November 2017, the FASB issued ASU 2017-14, Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) (SEC Update). This Update adds, amends, and supersedes SEC paragraphs of the ASC pursuant to Staff
Accounting Bulletin No. 116 and SEC Release 33-10403. This ASU was effective upon issuance.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 1. Summary of Significant Accounting Policies (Continued)
Recent Accounting Pronouncements (Continued)
In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. On December 22, 2017, the U.S. federal government enacted a tax
bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act). The amendments in this Update allow a reclassification from accumulated other
comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act. Consequently, the amendments in this Update eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will
improve the usefulness of information reported to financials statement users. However, because the amendments in this Update only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance
that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected. The amendments in this Update are affective for fiscal years beginning after December 15, 2018, and interim
periods within those fiscal years. Early adoption of this Update is permitted, including adoption in any interim period (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for
all other entities for reporting periods for which financial statements have not yet been made available for issuance. The amendments in this Update should be applied either in the period of adoption or retrospectively to each period (or
periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act is recognized. The adoption of this guidance did not have a material impact on the Company’s consolidated financial
statements.
In May 2018, the FASB issued ASU 2018-06, Codification Improvements to Topic 942, Financial Services – Depository and Lending. The amendments in this Update supersede the guidance in Subtopic 942-740, Financial Services – Depository and Lending – Income
Taxes, that is related to Circular 202 because that guidance has been rescinded by the Office of the Comptroller of the Currency (OCC) and is no longer relevant. This ASU was effective upon issuance.
In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting. Topic 718 improves several areas of nonemployee share-based payment accounting. The amendments in this
Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year. Early adoption is permitted, but no earlier than an entity’s adoption on Topic 606. The
adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.
In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements
for Fair Value Measurement.” The ASU removes, modifies, and adds certain disclosure requirements for fair value measurements. ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019. In
addition, entities may early adopt the modified or eliminated disclosure requirements and delay adoption of the additional disclosure requirements until effective date. The adoption of this guidance is not expected to have a material effect on
the Company’s consolidated financial statements.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 2. Securities
The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:
|
|
June 30, 2019
|
|
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
|
(In Thousands)
|
|
Securities Available-for-Sale
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLMC Mortgage-Backed Certificates
|
|
$
|
8,168
|
|
|
$
|
43
|
|
|
$
|
131
|
|
|
$
|
8,080
|
|
FNMA Mortgage-Backed Certificates
|
|
|
25,071
|
|
|
|
355
|
|
|
|
149
|
|
|
|
25,277
|
|
GNMA Mortgage-Backed Certificates
|
|
|
8,390
|
|
|
|
19
|
|
|
|
111
|
|
|
|
8,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt Securities
|
|
|
41,629
|
|
|
|
417
|
|
|
|
391
|
|
|
|
41,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Securities Available-for-Sale
|
|
$
|
41,629
|
|
|
$
|
417
|
|
|
$
|
391
|
|
|
$
|
41,655
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GNMA Mortgage-Backed Certificates
|
|
$
|
1,134
|
|
|
$
|
--
|
|
|
$
|
18
|
|
|
$
|
1,116
|
|
FNMA Mortgage-Backed Certificates
|
|
|
21,308
|
|
|
|
338
|
|
|
|
137
|
|
|
|
21,509
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt Securities
|
|
|
22,442
|
|
|
|
338
|
|
|
|
155
|
|
|
|
22,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Securities (Non-Marketable)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
26,571 Shares – Federal Home Loan Bank
|
|
|
2,657
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,657
|
|
630 Shares – First National Bankers Bankshares, Inc.
|
|
|
250
|
|
|
|
--
|
|
|
|
--
|
|
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity Securities
|
|
|
2,907
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Securities Held-to-Maturity
|
|
$
|
25,349
|
|
|
$
|
338
|
|
|
$
|
414
|
|
|
$
|
25,532
|
|
|
|
June 30, 2018
|
|
|
|
|
|
|
Gross
|
|
|
Gross
|
|
|
|
|
|
|
Amortized
|
|
|
Unrealized
|
|
|
Unrealized
|
|
|
Fair
|
|
|
|
Cost
|
|
|
Gains
|
|
|
Losses
|
|
|
Value
|
|
|
|
(In Thousands)
|
|
Securities Available-for-Sale
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLMC Mortgage-Backed Certificates
|
|
$
|
7,601
|
|
|
$
|
2
|
|
|
$
|
518
|
|
|
$
|
7,085
|
|
FNMA Mortgage-Backed Certificates
|
|
|
12,465
|
|
|
|
1
|
|
|
|
554
|
|
|
|
11,912
|
|
GNMA Mortgage-Backed Certificates
|
|
|
10,581
|
|
|
|
2
|
|
|
|
256
|
|
|
|
10,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt Securities
|
|
|
30,647
|
|
|
|
5
|
|
|
|
1,328
|
|
|
|
29,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Securities Available-for-Sale
|
|
$
|
30,647
|
|
|
$
|
5
|
|
|
$
|
1,328
|
|
|
$
|
29,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities Held-to-Maturity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
GNMA Mortgage-Backed Securities
|
|
$
|
1,160
|
|
|
$
|
--
|
|
|
$
|
45
|
|
|
$
|
1,115
|
|
FNMA Mortgage-Backed Securities
|
|
|
24,882
|
|
|
|
--
|
|
|
|
1,025
|
|
|
|
23,857
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Debt Securities
|
|
|
26,042
|
|
|
|
--
|
|
|
|
1,070
|
|
|
|
24,972
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity Securities (Non-Marketable)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
25,959 Shares – Federal Home Loan Bank
|
|
|
2,596
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,596
|
|
630 Shares – First National Bankers Bankshares, Inc.
|
|
|
250
|
|
|
|
--
|
|
|
|
--
|
|
|
|
250
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity Securities
|
|
|
2,846
|
|
|
|
--
|
|
|
|
--
|
|
|
|
2,846
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Securities Held-to-Maturity
|
|
$
|
28,888
|
|
|
$
|
--
|
|
|
$
|
1,070
|
|
|
$
|
27,818
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 2. Securities (Continued)
The amortized cost and fair value of securities by contractual maturity at June 30, 2019, follows:
|
|
Available-for-Sale
|
|
|
Held-to-Maturity
|
|
|
|
Amortized
|
|
|
Fair
|
|
|
Amortized
|
|
|
Fair
|
|
|
|
Cost
|
|
|
Value
|
|
|
Cost
|
|
|
Value
|
|
|
|
(In Thousands)
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
Within One Year or Less
|
|
$
|
31
|
|
|
$
|
32
|
|
|
$
|
--
|
|
|
$
|
--
|
|
One through Five Years
|
|
|
14,245
|
|
|
|
14,168
|
|
|
|
--
|
|
|
|
--
|
|
After Five through Ten Years
|
|
|
16,819
|
|
|
|
16,685
|
|
|
|
--
|
|
|
|
--
|
|
Over Ten Years
|
|
|
10,534
|
|
|
|
10,770
|
|
|
|
22,442
|
|
|
|
22,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
41,629
|
|
|
|
41,655
|
|
|
|
22,442
|
|
|
|
22,625
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Other Equity Securities
|
|
|
--
|
|
|
|
--
|
|
|
|
2,907
|
|
|
|
2,907
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
41,629
|
|
|
$
|
41,655
|
|
|
$
|
25,349
|
|
|
$
|
25,532
|
|
Information pertaining to securities with gross unrealized losses at June 30, 2019 and 2018, aggregated by
investment category and length of time that individual securities have been in a continuous loss position, follows:
|
|
June 30, 2019
|
|
|
|
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
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
391
|
|
|
$
|
19,149
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Securities Available-for-Sale
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
391
|
|
|
$
|
19,149
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
|
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
|
|
$
|
71
|
|
|
$
|
4,709
|
|
|
$
|
1,257
|
|
|
$
|
24,547
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Securities Available-for-Sale
|
|
$
|
71
|
|
|
$
|
4,709
|
|
|
$
|
1,257
|
|
|
$
|
24,547
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 2. Securities (Continued)
The unrealized losses on the Company’s investment in mortgage-backed securities at June 30,
2019 and 2018 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 June 30, 2019.
At June 30, 2019 and 2018, securities with a carrying value of $2.3 million and $1.2 million, respectively, were pledged to secure public deposits, and securities and mortgage loans
with a carrying value of $152.2 million and $144.5 million, respectively, were pledged to
secure FHLB advances.
Loans receivable at June 30, 2019 and 2018, are summarized as follows:
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Loans Secured by Mortgages on Real Estate
|
|
|
|
|
|
|
One-to-Four Family Residential
|
|
$
|
118,945
|
|
|
$
|
121,257
|
|
Commercial
|
|
|
83,397
|
|
|
|
74,416
|
|
Multi-Family Residential
|
|
|
46,171
|
|
|
|
38,079
|
|
Land
|
|
|
16,106
|
|
|
|
20,474
|
|
Construction
|
|
|
9,502
|
|
|
|
11,921
|
|
Equity and Second Mortgage
|
|
|
1,262
|
|
|
|
1,541
|
|
Equity Lines of Credit
|
|
|
15,619
|
|
|
|
17,387
|
|
|
|
|
|
|
|
|
|
|
Total Mortgage Loans
|
|
|
291,002
|
|
|
|
285,075
|
|
|
|
|
|
|
|
|
|
|
Commercial Loans
|
|
|
35,990
|
|
|
|
35,458
|
|
Consumer Loans
|
|
|
|
|
|
|
|
|
Loans on Savings Accounts
|
|
|
439
|
|
|
|
462
|
|
Other Consumer Loans
|
|
|
329
|
|
|
|
185
|
|
|
|
|
|
|
|
|
|
|
Total Consumer Other Loans
|
|
|
768
|
|
|
|
647
|
|
Total Loans
|
|
|
327,760
|
|
|
|
321,180
|
|
|
|
|
|
|
|
|
|
|
Less: Allowance for Loan Losses
|
|
|
(3,452
|
)
|
|
|
(3,425
|
)
|
Unamortized Loan Fees
|
|
|
(174
|
)
|
|
|
(262
|
)
|
|
|
|
|
|
|
|
|
|
Net Loans Receivable
|
|
$
|
324,134
|
|
|
$
|
317,493
|
|
An analysis of the allowance for loan losses follows:
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Balance - Beginning of Year
|
|
$
|
3,425
|
|
|
$
|
3,729
|
|
Provision for Loan Losses
|
|
|
600
|
|
|
|
1,050
|
|
Recoveries
|
|
|
13
|
|
|
|
26
|
|
Loan Charge-Offs
|
|
|
(586
|
)
|
|
|
(1,380
|
)
|
|
|
|
|
|
|
|
|
|
Balance – End of Year
|
|
$
|
3,452
|
|
|
$
|
3,425
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Fixed rate loans receivable, as of June 30, 2019, are scheduled to mature and adjustable rate
loans are scheduled to re-price as follows (in thousands):
|
|
Under
|
|
|
Over One
|
|
|
Over Five
|
|
|
Over
|
|
|
|
|
|
|
One
|
|
|
to Five
|
|
|
to Ten
|
|
|
Ten
|
|
|
|
|
|
|
Year
|
|
|
Years
|
|
|
Years
|
|
|
Years
|
|
|
Total
|
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
Loans Secured by One-to-Four Family Residential
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate
|
|
$
|
6,364
|
|
|
$
|
42,923
|
|
|
$
|
6,465
|
|
|
$
|
30,634
|
|
|
$
|
86,386
|
|
Adjustable Rate
|
|
|
1,337
|
|
|
|
11,280
|
|
|
|
8,349
|
|
|
|
11,593
|
|
|
|
32,559
|
|
Other Loans Secured by Real Estate
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate
|
|
|
29,867
|
|
|
|
68,282
|
|
|
|
29,210
|
|
|
|
4,550
|
|
|
|
131,909
|
|
Adjustable Rate
|
|
|
19,743
|
|
|
|
9,357
|
|
|
|
--
|
|
|
|
11,048
|
|
|
|
40,148
|
|
All Other Loans
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate
|
|
|
3,624
|
|
|
|
16,846
|
|
|
|
712
|
|
|
|
--
|
|
|
|
21,182
|
|
Adjustable Rate
|
|
|
15,576
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
15,576
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
76,511
|
|
|
$
|
148,688
|
|
|
$
|
44,736
|
|
|
$
|
57,825
|
|
|
$
|
327,760
|
|
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.
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 institution’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.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Credit Quality Indicators (Continued)
Loss - This classification includes those loans which are considered uncollectible and of such little value
that their continuance as loans is not warranted. Even partial recovery may be possible in the future, it is not practical or desirable to defer writing off these though basically worthless loans. Accordingly, these loans are charged-off
before period end.
The following tables present the grading of loans, segregated by class of loans, as of June 30, 2019 and
2018:
June 30, 2019
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Residential
|
|
$
|
118,459
|
|
|
$
|
17
|
|
|
$
|
469
|
|
|
$
|
--
|
|
|
$
|
118,945
|
|
Commercial
|
|
|
80,087
|
|
|
|
--
|
|
|
|
3,310
|
|
|
|
--
|
|
|
|
83,397
|
|
Multi-Family Residential
|
|
|
46,171
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
46,171
|
|
Land
|
|
|
13,126
|
|
|
|
--
|
|
|
|
2,980
|
|
|
|
--
|
|
|
|
16,106
|
|
Construction
|
|
|
9,502
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
9,502
|
|
Equity and Second Mortgage
|
|
|
1,168
|
|
|
|
64
|
|
|
|
30
|
|
|
|
--
|
|
|
|
1,262
|
|
Equity Lines of Credit
|
|
|
15,619
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
15,619
|
|
Commercial Loans
|
|
|
35,367
|
|
|
|
--
|
|
|
|
623
|
|
|
|
--
|
|
|
|
35,990
|
|
Consumer Loans
|
|
|
768
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
768
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
320,267
|
|
|
$
|
81
|
|
|
$
|
7,412
|
|
|
$
|
--
|
|
|
$
|
327,760
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
|
|
Special
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Residential
|
|
$
|
120,317
|
|
|
$
|
652
|
|
|
$
|
996
|
|
|
$
|
--
|
|
|
$
|
121,257
|
|
Commercial
|
|
|
74,416
|
|
|
|
--
|
|
|
|
4,060
|
|
|
|
--
|
|
|
|
74,416
|
|
Multi-Family Residential
|
|
|
38,079
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
38,079
|
|
Land
|
|
|
20,474
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
20,474
|
|
Construction
|
|
|
11,921
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
11,921
|
|
Equity and Second Mortgage
|
|
|
1,541
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,541
|
|
Equity Lines of Credit
|
|
|
17,300
|
|
|
|
--
|
|
|
|
87
|
|
|
|
--
|
|
|
|
17,387
|
|
Commercial Loans
|
|
|
29,817
|
|
|
|
--
|
|
|
|
873
|
|
|
|
--
|
|
|
|
35,458
|
|
Consumer Loans
|
|
|
647
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
647
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
314,512
|
|
|
$
|
652
|
|
|
$
|
6,016
|
|
|
$
|
--
|
|
|
$
|
321,180
|
|
Factors considered by management in determining impairment include payment status, collateral value, and the
probability of collecting scheduled principal and interest payments when contractually due. Loans that experience insignificant payment delays or payment shortfalls are generally not classified as impaired. On a case-by-case basis,
management determines the significance of payment delays and payment shortfalls, taking into consideration all of the circumstances related to the loan, including: the length of the payment delay, the reasons for the delay, the borrower’s
prior payment record, and the amount of the shortfall in relation to the principal and interest owed.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Credit Quality Indicators (Continued)
An aging analysis of past due loans, segregated by class of loans, as of June 30, 2019 and 2018, is as
follows:
June 30, 2019
|
|
|
|
|
|
|
|
90 Days or
More
|
|
|
Total
Past Due
|
|
|
Current
|
|
|
Total Loans
Receivable
|
|
|
Recorded
Investment
>90 Days
and
Accruing
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family
Residential
|
|
$
|
2,204
|
|
|
$
|
715
|
|
|
$
|
596
|
|
|
$
|
3,515
|
|
|
$
|
115,430
|
|
|
$
|
118,945
|
|
|
$
|
420
|
|
Commercial
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
83,397
|
|
|
|
83,397
|
|
|
|
--
|
|
Multi-Family Residential
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
46,171
|
|
|
|
46,171
|
|
|
|
--
|
|
Land
|
|
|
--
|
|
|
|
--
|
|
|
|
2,981
|
|
|
|
2,981
|
|
|
|
13,125
|
|
|
|
16,106
|
|
|
|
--
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
9,502
|
|
|
|
9,502
|
|
|
|
--
|
|
Equity and Second Mortgage
|
|
|
120
|
|
|
|
--
|
|
|
|
--
|
|
|
|
120
|
|
|
|
1,142
|
|
|
|
1,262
|
|
|
|
--
|
|
Equity Lines of Credit
|
|
|
--
|
|
|
|
49
|
|
|
|
--
|
|
|
|
49
|
|
|
|
15,570
|
|
|
|
15,619
|
|
|
|
--
|
|
Commercial Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
215
|
|
|
|
215
|
|
|
|
35,775
|
|
|
|
35,990
|
|
|
|
49
|
|
Consumer Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
768
|
|
|
|
768
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
2,324
|
|
|
$
|
764
|
|
|
$
|
3,792
|
|
|
$
|
6,880
|
|
|
$
|
320,880
|
|
|
$
|
327,760
|
|
|
$
|
469
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
|
|
|
|
|
|
Recorded
Investment
> 90 Days
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family
Residential
|
|
$
|
1,481
|
|
|
$
|
230
|
|
|
$
|
1,954
|
|
|
$
|
3,665
|
|
|
$
|
117,592
|
|
|
$
|
121,257
|
|
|
$
|
680
|
|
Commercial
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
74,416
|
|
|
|
74,416
|
|
|
|
--
|
|
Multi-Family Residential
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
38,079
|
|
|
|
38,079
|
|
|
|
--
|
|
Land
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
20,474
|
|
|
|
20,474
|
|
|
|
--
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
11,921
|
|
|
|
11,921
|
|
|
|
--
|
|
Equity and Second Mortgage
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,541
|
|
|
|
1,541
|
|
|
|
--
|
|
Equity Lines of Credit
|
|
|
134
|
|
|
|
59
|
|
|
|
117
|
|
|
|
310
|
|
|
|
17,077
|
|
|
|
17,387
|
|
|
|
30
|
|
Commercial Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
416
|
|
|
|
416
|
|
|
|
35,042
|
|
|
|
35,458
|
|
|
|
--
|
|
Consumer Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
647
|
|
|
|
647
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,615
|
|
|
$
|
289
|
|
|
$
|
2,487
|
|
|
$
|
4,391
|
|
|
$
|
316,789
|
|
|
$
|
321,180
|
|
|
$
|
710
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Credit Quality Indicators (Continued)
The allowance for loan losses and recorded investment in loans for the year ended June 30, 2019 and 2018 was as follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balances
|
|
$
|
1,166
|
|
|
$
|
436
|
|
|
$
|
256
|
|
|
$
|
161
|
|
|
$
|
163
|
|
|
$
|
311
|
|
|
$
|
929
|
|
|
$
|
3
|
|
|
$
|
3,425
|
|
Charge-Offs
|
|
|
(277
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
(289
|
)
|
|
|
--
|
|
|
|
(20
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
(586
|
)
|
Recoveries
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
13
|
|
|
|
--
|
|
|
|
--
|
|
|
|
13
|
|
Current Provision
|
|
|
128
|
|
|
|
72
|
|
|
|
82
|
|
|
|
228
|
|
|
|
(48
|
)
|
|
|
(160
|
)
|
|
|
298
|
|
|
|
--
|
|
|
|
600
|
|
Ending Balances
|
|
$
|
1,017
|
|
|
$
|
508
|
|
|
$
|
338
|
|
|
$
|
100
|
|
|
$
|
115
|
|
|
$
|
144
|
|
|
$
|
1,227
|
|
|
$
|
3
|
|
|
$
|
3,452
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually
|
|
|
--
|
|
|
|
238
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
238
|
|
Collectively
|
|
|
1,017
|
|
|
|
270
|
|
|
|
338
|
|
|
|
100
|
|
|
|
115
|
|
|
|
144
|
|
|
|
1,227
|
|
|
|
3
|
|
|
|
3,214
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balances - Total
|
|
$
|
118,945
|
|
|
$
|
83,397
|
|
|
$
|
46,171
|
|
|
$
|
16,106
|
|
|
$
|
9,502
|
|
|
$
|
16,881
|
|
|
$
|
35,990
|
|
|
$
|
768
|
|
|
$
|
327,760
|
|
Ending Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually
|
|
|
469
|
|
|
|
3,310
|
|
|
|
--
|
|
|
|
2,980
|
|
|
|
--
|
|
|
|
30
|
|
|
|
623
|
|
|
|
--
|
|
|
|
7,412
|
|
Collectively
|
|
$
|
118,476
|
|
|
$
|
80,087
|
|
|
$
|
46,171
|
|
|
$
|
13,126
|
|
|
$
|
9,502
|
|
|
$
|
16,851
|
|
|
$
|
35,367
|
|
|
$
|
768
|
|
|
$
|
320,348
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial
|
|
|
Consumer
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Beginning Balances
|
|
$
|
1,822
|
|
|
$
|
353
|
|
|
$
|
73
|
|
|
$
|
203
|
|
|
$
|
147
|
|
|
$
|
142
|
|
|
$
|
979
|
|
|
$
|
10
|
|
|
$
|
3,729
|
|
Charge-Offs
|
|
|
(797
|
)
|
|
|
--
|
|
|
|
--
|
|
|
|
(109
|
)
|
|
|
--
|
|
|
|
(217
|
)
|
|
|
(250
|
)
|
|
|
(7
|
)
|
|
|
(1,380
|
)
|
Recoveries
|
|
|
5
|
|
|
|
--
|
|
|
|
--
|
|
|
|
20
|
|
|
|
--
|
|
|
|
1
|
|
|
|
--
|
|
|
|
--
|
|
|
|
26
|
|
Current Provision
|
|
|
136
|
|
|
|
83
|
|
|
|
183
|
|
|
|
47
|
|
|
|
16
|
|
|
|
385
|
|
|
|
200
|
|
|
|
--
|
|
|
|
1,050
|
|
Ending Balances
|
|
$
|
1,166
|
|
|
$
|
436
|
|
|
$
|
256
|
|
|
$
|
161
|
|
|
$
|
163
|
|
|
$
|
311
|
|
|
$
|
929
|
|
|
$
|
3
|
|
|
$
|
3,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Collectively
|
|
|
1,166
|
|
|
|
436
|
|
|
|
256
|
|
|
|
161
|
|
|
|
163
|
|
|
|
311
|
|
|
|
929
|
|
|
|
3
|
|
|
|
3,425
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans Receivable:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Ending Balances – Total
|
|
$
|
121,257
|
|
|
$
|
74,416
|
|
|
$
|
38,079
|
|
|
$
|
20,474
|
|
|
$
|
11,921
|
|
|
$
|
18,928
|
|
|
$
|
35,458
|
|
|
$
|
647
|
|
|
$
|
321,180
|
|
Ending Balances:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Evaluated for Impairment:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Individually
|
|
|
1,648
|
|
|
|
4,060
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
87
|
|
|
|
873
|
|
|
|
--
|
|
|
|
6,668
|
|
Collectively
|
|
$
|
119,609
|
|
|
$
|
70,356
|
|
|
$
|
38,079
|
|
|
$
|
20,474
|
|
|
$
|
11,921
|
|
|
$
|
18,841
|
|
|
$
|
34,585
|
|
|
$
|
647
|
|
|
$
|
314,512
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Credit Quality Indicators (Continued)
The following table’s present loans individually evaluated for impairment, segregated by class of
loans, as of June 30, 2019 and 2018:
June 30, 2019
|
|
|
|
|
Recorded
Investment
With No
Allowance
|
|
|
Recorded
Investment
With
Allowance
|
|
|
Total
Recorded
Investment
|
|
|
|
|
|
Average
Recorded
Investment
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
One-to-Four Family Residential
|
|
$
|
469
|
|
|
$
|
469
|
|
|
$
|
--
|
|
|
$
|
469
|
|
|
$
|
--
|
|
|
$
|
474
|
|
Commercial
|
|
|
3,310
|
|
|
|
--
|
|
|
|
3,310
|
|
|
|
3,310
|
|
|
|
238
|
|
|
|
3,877
|
|
Multi-Family Residential
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Land
|
|
|
2,980
|
|
|
|
2,980
|
|
|
|
--
|
|
|
|
2,980
|
|
|
|
--
|
|
|
|
2,951
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Equity and Second Mortgage
|
|
|
30
|
|
|
|
30
|
|
|
|
--
|
|
|
|
30
|
|
|
|
--
|
|
|
|
30
|
|
Equity Lines of Credit
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Commercial Loans
|
|
|
623
|
|
|
|
623
|
|
|
|
--
|
|
|
|
623
|
|
|
|
--
|
|
|
|
630
|
|
Consumer Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
7,412
|
|
|
$
|
4,102
|
|
|
$
|
3,310
|
|
|
$
|
7,412
|
|
|
$
|
238
|
|
|
$
|
7,962
|
|
June 30, 2018
|
|
|
|
|
Recorded
Investment
With No
Allowance
|
|
|
Recorded
Investment
With
Allowance
|
|
|
Total
Recorded
Investment
|
|
|
|
|
|
Average
Recorded
Investment
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
One-to-Four Family Residential
|
|
$
|
1,648
|
|
|
$
|
1,648
|
|
|
$
|
--
|
|
|
$
|
1,648
|
|
|
$
|
--
|
|
|
$
|
1,687
|
|
Commercial
|
|
|
4,060
|
|
|
|
4,060
|
|
|
|
--
|
|
|
|
4,060
|
|
|
|
--
|
|
|
|
4,186
|
|
Multi-Family Residential
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Land
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Equity and Second Mortgage
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
Equity Lines of Credit
|
|
|
87
|
|
|
|
87
|
|
|
|
--
|
|
|
|
87
|
|
|
|
--
|
|
|
|
87
|
|
Commercial Loans
|
|
|
873
|
|
|
|
873
|
|
|
|
--
|
|
|
|
873
|
|
|
|
--
|
|
|
|
877
|
|
Consumer Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
6,668
|
|
|
$
|
6,668
|
|
|
$
|
--
|
|
|
$
|
6,668
|
|
|
$
|
--
|
|
|
$
|
6,837
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Credit Quality Indicators (Continued)
A troubled debt restructuring (“TDR”) is a restructuring of a debt made by the Company to a debtor for
economic or legal reasons related to the debtor’s financial difficulties that it would not otherwise consider. The Company grants the concession in an attempt to protect as much of its investment as possible.
Information about the Company’s TDRs is as follows (in thousands):
|
|
|
June 30, 2019
|
|
|
|
|
Current
|
|
Past Due Greater Than 30 Days
|
|
Nonaccrual TDRs
|
|
Total TDRs
|
|
|
Commercial business
|
$
|
457
|
|
|
$
|
122
|
|
|
$
|
122
|
|
|
$
|
579
|
|
|
1-4 Family Residential
|
|
76
|
|
|
|
--
|
|
|
|
--
|
|
|
|
76
|
|
|
Commercial real estate
|
|
3,310
|
|
|
|
--
|
|
|
|
--
|
|
|
|
3,310
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
|
|
Current
|
|
Past Due Greater Than 30 Days
|
|
Nonaccrual TDRs
|
|
Total TDRs
|
|
|
Commercial business
|
$
|
4,943
|
|
|
$
|
416
|
|
|
$
|
416
|
|
|
$
|
5,359
|
|
|
1-4 Family Residential
|
|
1,943
|
|
|
|
--
|
|
|
|
--
|
|
|
|
1,943
|
|
During the year ended June 30, 2019 there were four loan relationships with a pre-modification balance of
$4.7 million identified as TDRs after conversion of the loans’ interest rates and payment term modifications. For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss
probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined losses are probable on such TDRs, either because of delinquency or
other credit quality indicator, the Company establishes specific reserves for these loans. As of June 30, 2019, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 3. Loans Receivable (Continued)
Credit Quality Indicators (Continued)
For each of the years ended June 30, 2019 and 2018, approximately $274,000 and $126,000, respectively, of interest was foregone on non-accrual loans. Impaired loans consisted of non-accruing loans at June 30, 2019 and 2018, and TDRs at June 30, 2019 and 2018.
Impaired loans, segregated by class of loans, were as follows:
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Real Estate Loans:
|
|
|
|
|
|
|
One-to-Four Family Residential
|
|
$
|
295
|
|
|
$
|
2,586
|
|
Commercial
|
|
|
3,310
|
|
|
|
5,359
|
|
Multi-Family Residential
|
|
|
--
|
|
|
|
--
|
|
Land
|
|
|
2,980
|
|
|
|
--
|
|
Construction
|
|
|
--
|
|
|
|
--
|
|
Equity and Second Mortgage
|
|
|
--
|
|
|
|
--
|
|
Equity Lines of Credit
|
|
|
30
|
|
|
|
87
|
|
Commercial Loans
|
|
|
623
|
|
|
|
416
|
|
Consumer Loans
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
7,238
|
|
|
$
|
8,448
|
|
Note 4.
|
Accrued Interest Receivable
|
Accrued interest receivable at June 30, 2019 and 2018 consisted of the following:
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Accrued Interest on:
|
|
|
|
|
|
|
Mortgage Loans
|
|
$
|
391
|
|
|
$
|
554
|
|
Other Loans
|
|
|
654
|
|
|
|
487
|
|
Investments
|
|
|
2
|
|
|
|
3
|
|
Mortgage-Backed Securities
|
|
|
125
|
|
|
|
102
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,172
|
|
|
$
|
1,146
|
|
Note 5.
|
Premises and Equipment
|
A summary of the cost and accumulated depreciation of premises and equipment follows:
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Land
|
|
$
|
4,594
|
|
|
$
|
3,746
|
|
Buildings
|
|
|
10,590
|
|
|
|
8,614
|
|
Equipment
|
|
|
2,031
|
|
|
|
1,468
|
|
Construction in Progress
|
|
|
140
|
|
|
|
1,681
|
|
|
|
|
17,355
|
|
|
|
15,509
|
|
Accumulated Depreciation
|
|
|
(3,801
|
)
|
|
|
(3,266
|
)
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
13,554
|
|
|
$
|
12,243
|
|
Depreciation
expense charged against operations for the years ended June 30, 2019 and 2018 was $536,000 and $503,000, respectively.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Deposits at June 30, 2019 and 2018 are summarized as follows:
|
|
Weighted
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Rate at
|
|
|
Rate at
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
Non-Interest Bearing
|
|
|
0.00
|
%
|
|
|
0.00
|
%
|
|
$
|
59,351
|
|
|
|
15.29
|
%
|
|
$
|
58,001
|
|
|
|
16.10
|
%
|
NOW Accounts
|
|
|
0.55
|
%
|
|
|
0.67
|
%
|
|
|
31,045
|
|
|
|
8.00
|
|
|
|
34,576
|
|
|
|
9.60
|
|
Money Market
|
|
|
1.21
|
%
|
|
|
0.84
|
%
|
|
|
74,934
|
|
|
|
19.31
|
|
|
|
70,175
|
|
|
|
19.48
|
|
Passbook Savings
|
|
|
0.77
|
%
|
|
|
0.53
|
%
|
|
|
39,569
|
|
|
|
10.19
|
|
|
|
36,241
|
|
|
|
10.06
|
|
|
|
|
|
|
|
|
|
|
|
|
204,899
|
|
|
|
52.79
|
|
|
|
198,993
|
|
|
|
55.24
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Certificates of Deposit
|
|
|
2.07
|
%
|
|
|
1.56
|
%
|
|
|
183,265
|
|
|
|
47.21
|
|
|
|
161,267
|
|
|
|
44.76
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits
|
|
|
|
|
|
|
|
|
|
$
|
388,164
|
|
|
|
100.00
|
%
|
|
$
|
360,260
|
|
|
|
100.00
|
%
|
The composition of certificates of deposit accounts by interest rate is as follows:
|
|
2019
|
|
|
2018
|
|
|
|
Amount
|
|
|
Percent
|
|
|
Amount
|
|
|
Percent
|
|
|
|
(Dollars in Thousands)
|
|
0.00% to 0.99%
|
|
$
|
12,627
|
|
|
|
6.89
|
%
|
|
$
|
15,310
|
|
|
|
9.49
|
%
|
1.00% to 1.99%
|
|
|
65,745
|
|
|
|
35.87
|
|
|
|
121,572
|
|
|
|
75.39
|
|
2.00% to 2.99%
|
|
|
102,767
|
|
|
|
56.08
|
|
|
|
24,234
|
|
|
|
15.03
|
|
3.00% to 3.99%
|
|
|
2,126
|
|
|
|
1.16
|
|
|
|
151
|
|
|
|
0.09
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Deposits
|
|
$
|
183,265
|
|
|
|
100.00
|
%
|
|
$
|
161,267
|
|
|
|
100.00
|
%
|
Maturities of certificates of deposit accounts at June 30, 2019 are scheduled as follows:
|
|
|
|
|
|
|
|
Weighted
|
|
Year Ending
|
|
|
|
|
|
|
|
Average
|
|
June 30,
|
|
Amount
|
|
|
Percent
|
|
|
Rate
|
|
|
|
(Dollars in Thousands)
|
|
|
|
|
2020
|
|
$
|
97,610
|
|
|
|
53.26
|
%
|
|
|
1.95
|
%
|
2021
|
|
|
41,627
|
|
|
|
22.72
|
|
|
|
2.00
|
|
2022
|
|
|
25,850
|
|
|
|
14.11
|
|
|
|
2.27
|
|
2023
|
|
|
7,336
|
|
|
|
4.00
|
|
|
|
2.13
|
|
2024
|
|
|
10,375
|
|
|
|
5.66
|
|
|
|
2.80
|
|
2025
|
|
|
467
|
|
|
|
0.25
|
|
|
|
2.98
|
|
Total
|
|
$
|
183,265
|
|
|
|
100.00
|
%
|
|
|
2.07
|
%
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 6. Deposits (Continued)
Interest expense on deposits for the years ended June 30, 2019 and 2018 was as follows:
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
NOW and Money Market
|
|
$
|
927
|
|
|
$
|
458
|
|
Passbook Savings
|
|
|
195
|
|
|
|
194
|
|
Certificates of Deposit
|
|
|
3,258
|
|
|
|
2,394
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
4,380
|
|
|
$
|
3,046
|
|
The aggregate amount of time deposits in denominations of $100,000 or more at June 30, 2019 and 2018 was $131.9 million and $114.2 million,
respectively.
At June 30, 2019 and 2018, the Bank had brokered certificates of deposit totaling $11.2 million and
$8.7 million, respectively. The brokered certificates of deposit are callable by the Bank after twelve months.
Note 7. Advances from Federal Home Loan Bank of Dallas
Pursuant to collateral agreements with the Federal Home Loan Bank of Dallas (FHLB), advances are secured by a blanket floating lien on
first mortgage loans. Total interest expense recognized amounted to $143,000 and $445,000 for fiscal years 2019 and 2018, respectively.
Advances at June 30, 2019 and 2018 consisted of the following:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
0.00% to 0.99%
|
|
$
|
--
|
|
|
$
|
--
|
|
1.00% to 1.99%
|
|
|
--
|
|
|
|
--
|
|
2.00% to 2.99%
|
|
|
--
|
|
|
|
10,000
|
|
3.00% to 3.99%
|
|
|
--
|
|
|
|
--
|
|
4.00% to 4.99%
|
|
|
1,355
|
|
|
|
1,637
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,355
|
|
|
$
|
11,637
|
|
Maturities of advances at June 30, 2019 are as follows (in thousands):
Year Ending
|
|
|
|
|
|
|
|
2020
|
|
$
|
295
|
|
2021
|
|
|
192
|
|
2022
|
|
|
34
|
|
2023
|
|
|
36
|
|
2024
|
|
|
798
|
|
Thereafter
|
|
|
--
|
|
|
|
|
|
|
Total
|
|
$
|
1,355
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 8. Other Borrowings
At June 30, 2019 and 2018, the Company had available a $3.0 million line of credit agreement with First
National Bankers Bank with the latest line maturing September 29, 2019. The line is secured by shares of the subsidiary Bank’s common stock and bears interest at an initial rate of 5.0%, subject to change when adjustments are made to Wall
Street Journal Prime. At June 30, 2019, the line had an outstanding balance of $450,000. Interest expense amounted to $9,000 and $4,000 for the years
ended June 30, 2019 and 2018, respectively.
Lease Commitments
The Bank leases property for two branch facilities expiring in various years through May 2021.
Future minimum rental payments resulting from the non-cancelable term of these leases are as follows (in thousands):
Year Ending
|
|
|
|
|
|
|
|
2020
|
|
$
|
52
|
|
2021
|
|
|
48
|
|
|
|
|
|
|
Total
|
|
$
|
100
|
|
Total rent expense paid under the terms of these leases for the years ended June 30, 2019 and 2018 amounted to $88,000 and $86,000, respectively.
Contractual Commitment
The Bank has an agreement with a third-party to provide on-line data processing services. The agreement,
which expires May 31, 2024, contains minimum monthly service charges of $28,821. At the end of this term, the agreement will automatically continue for successive periods of five years unless terminated upon written notice given at least
six months prior to the end of the present term.
The future minimum commitments for the on-line processing services are as follows (in thousands):
Year Ending
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
2020
|
|
$
|
346
|
|
2021
|
|
|
346
|
|
2022
|
|
|
346
|
|
2023
|
|
|
346
|
|
2024
|
|
|
317
|
|
Total
|
|
$
|
1,701
|
|
|
|
|
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 9.
|
Commitments (Continued)
|
Employment Contracts
The Company and the Bank have employment contract with a certain key employees. These contracts provide
for compensation and termination benefits. The future minimum commitments for employment contracts are as follows (in thousands):
Year Ending
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
2020
|
|
$
|
194
|
|
2021
|
|
|
194
|
|
2022
|
|
|
194
|
|
|
|
|
|
|
Total
|
|
$
|
582
|
|
Letters of Credit
At June 30, 2019, the Company had secured letters of credit in the aggregate amount of $27.7 million
outstanding with the Federal Home Loan Bank, and $27.7 million expiring within one year. These letters of credit were issued to secure public body
deposits. There were no outstanding borrowings associated with these letters of credit at June 30, 2019.
Note 10. Income Taxes
The Company and its subsidiary file consolidated federal income tax returns. The current provision for
federal and state income taxes is calculated on pretax accounting income adjusted by items considered to be permanent differences between book and taxable income. Income tax expense for the years ended June 30, 2019 and 2018 is summarized
as follows:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Current
|
|
$
|
1,313
|
|
|
$
|
1,753
|
|
Deferred
|
|
|
(30
|
)
|
|
|
499
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
1,283
|
|
|
$
|
2,252
|
|
The effective federal income tax rate for the years ended June 30, 2019 and 2018 was 21.3% and 38.7%, respectively. Reconciliations of income tax expense at the statutory rate to the Company’s effective rates are as follows:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Computed at Expected Statutory Rate
|
|
$
|
1,265
|
|
|
$
|
2,322
|
|
Non-Taxable Income
|
|
|
--
|
|
|
|
(46
|
)
|
Other
|
|
|
18
|
|
|
|
(24
|
)
|
|
|
|
|
|
|
|
|
|
Provision for Income Tax Expense
|
|
$
|
1,283
|
|
|
$
|
2,252
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 10. Income Taxes (Continued)
At June 30, 2019 and 2018, temporary differences between the financial statement carrying amount and tax
bases of assets that gave rise to deferred tax recognition were related to the effect of loan bad debt deduction differences for tax and book purposes, deferred stock option compensation, and supplemental employee retirement benefits. The
deferred tax expense or benefit related to securities available-for-sale has no effect on the Company’s income tax provision since it is charged or credited to the Company’s other comprehensive income or loss equity component. A valuation
allowance has been established to eliminate the deferred tax benefit of capital losses due to the uncertainty as to whether the tax benefits would be realized in future periods.
The net deferred income tax asset and liability consisted of the following components at June 30, 2019 and 2018:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Deferred Tax Assets
|
|
|
|
|
|
|
Market Value Adjustment to Available-for-Sale
|
|
|
|
|
|
|
Securities
|
|
$
|
(5
|
)
|
|
$
|
278
|
|
Stock Option and SERP Compensation
|
|
|
223
|
|
|
|
199
|
|
Loans Receivable - Bad Debt Loss Allowance
|
|
|
659
|
|
|
|
653
|
|
Capital Losses
|
|
|
92
|
|
|
|
45
|
|
|
|
|
969
|
|
|
|
1,175
|
|
Valuation Allowance
|
|
|
(120
|
)
|
|
|
(73
|
)
|
|
|
|
|
|
|
|
|
|
Net Deferred Tax Assets
|
|
$
|
849
|
|
|
$
|
1,102
|
|
|
|
|
|
|
|
|
|
|
Included in retained earnings at June 30, 2019 and 2018 is approximately $3.3 million for which no deferred Federal income tax liability has been recorded. This amount
consists of the total amount of bad debt reserves deducted for income tax reporting purposes prior to January 1, 1988. Under current tax law, these pre-1988 bad debt reserves are subject to recapture into taxable income if the Bank were to
(a) make certain “non-dividend distributions,” which include distributions in excess of the Bank’s current and accumulated earnings and profits, distributions in redemption of stock, and distributions in partial or complete liquidation or
(b) cease to maintain a bank or thrift charter. The unrecorded deferred tax liability was approximately $693,000 at June 30, 2019 and 2018.
Accounting principles generally accepted in the United States of America provide accounting and disclosure
guidance about positions taken by an entity in its tax returns that might be uncertain. The Company believes that it has appropriate support for any tax positions taken, and as such, does not have any uncertain tax positions that are
material to the consolidated financial statements.
Penalties and interest assessed by income taxing authorities, if any, would be included in income tax
expense.
Note 11. Employee Benefit Plans
Effective November 15, 2004, the Bank adopted the Home Federal Bank Employees’ Savings and Profit Sharing
Plan and Trust. This plan complies with the requirements of Section 401(k) of the Internal Revenue Code. Those eligible for this defined contribution plan must have completed twelve months of full time service and attained age 21. For
2019, participating employees may make elective salary reduction contributions of up to $19,000 of their eligible compensation. The Bank will contribute a basic “safe harbor” contribution of 3% of participant plan salary and will match
100% of the first 6% of plan salary elective deferrals. The Bank is also permitted to make discretionary contributions to be allocated to participant accounts. Pension costs, including administrative fees, attributable to the Bank’s
401(k) safe harbor plan for the years ended June 30, 2019 and 2018 were $199,000 and $175,000 respectively.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 11. Employee Benefit Plans (Continued)
During fiscal year 2011, the Company established a Survivor Benefit Plan for the benefit of selected
executives. The purpose of the plan is to provide benefits to designated beneficiaries, if a participant dies while employed by the Company. The plan is considered an unfunded plan for tax and ERISA purposes, and all obligations arising
under the plan are payable from the general assets of the Company. At June 30, 2019 and 2018, there were no obligations requiring accrual for this plan.
The Bank adopted a Supplemental Executive Retirement Agreement on December 27, 2012 (Effective Date) for
its then Chief Executive Officer, Daniel R. Herndon. The agreement provides for retirement benefits payable in equal annual installments of $75,000 for eight consecutive years after Mr. Herndon’s retirement. Mr. Herndon was 100%
vested after December 31, 2017. In the event of his death after a separation from service on or after December 31, 2017, and prior to receipt of eight years of Supplemental Retirement Benefits, the remainder will be payable each year to
his designated beneficiary. In the event of his death while in active service, the designated beneficiary shall receive the full Supplemental Retirement Benefit in a single lump sum payment within thirty days following the date of death.
The Bank adopted a Supplemental Executive Retirement Agreement on December 13, 2017 for the benefit of Mr.
James R. Barlow as President and Chief Executive Officer of the Company and the Bank effective as of January 1, 2018 (Effective Date). Under the terms of the agreement, after the target retirement date of December 31, 2033, Mr. Barlow will
receive annual retirement benefits of $120,000, payable in equal annual installments over ten years. In the event of a separation from service prior to December 31, 2033, other than as a result of death and without cause, Mr. Barlow would
receive his accrued benefits through such date payable in a lump sum. If Mr. Barlow has a separation from service either concurrently with or within two years following a change in control, he will be credited with five additional years of
service following the date of his separation from service for purposes of calculating his accrued amount. In the event of death while in active service, his designated beneficiaries would receive a lump sum payment of the full retirement
benefit. In the event of death after retirement, but before all payments have been made, any remaining benefits will be paid to the designated beneficiaries until all the annual installments have been paid. The retirement benefits are
vesting ratably at 6.25% per year for sixteen years beginning with the calendar year ending December 31, 2018.
For the years ended June 30, 2019 and 2018, the Company recorded compensation expense totaling $38,506 and $93,789, respectively, to accrue the benefits required by the Supplemental Executive Retirement Agreements. The Bank’s compensation expense under the
agreement with Mr. Herndon was fully accrued as of December 31, 2017.
Note 12. Employee Stock Ownership Plan
During fiscal 2009, the Company instituted an employee stock ownership plan. The Home Federal Bank
Employee Stock Ownership Plan (ESOP) enables all eligible employees of the Bank to share in the growth of the Company through the acquisition of stock. Employees are generally eligible to participate in the ESOP after completion of one
year of service and attaining the age of 21.
The ESOP purchased the statutory limit of eight percent of the shares sold in our initial public offering
completed on January 18, 2005, excluding shares issued to Home Federal Mutual Holding Company of Louisiana. This purchase was facilitated by a loan from the Company to the ESOP in the amount of $1.1 million. The corresponding note is
being repaid in 80 quarterly debt service payments of $23,000 on the last business day of each quarter, beginning March 31, 2005, at the rate of 5.25%.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 12. Employee Stock Ownership Plan (Continued)
As part of our second step conversion completed on December 22, 2010, the ESOP purchased
116,713 shares of the Company, which represented 6.0% of the shares sold in the offering. This purchase was facilitated by a loan from the Company to the ESOP in the amount of $1.2 million. The corresponding note is being repaid in 80
quarterly debt service payments of $20,000 on the last business day of each quarter, beginning March 31, 2011, at the rate of 3.2%.
The loans are secured by a pledge of the ESOP shares. The shares pledged as collateral are reported as
unearned ESOP shares in the consolidated balance sheets. The notes payable and the corresponding notes receivable have been eliminated in consolidation.
The Company may contribute to the ESOP, in the form of debt service, at the discretion of its board of
directors. Cash dividends on the Company’s unallocated stock shall be used to either repay the loan or be distributed to the participants in the ESOP. If dividends are used to repay the loan, additional shares will be released from the
suspense account and allocated to participants. Shares are released for allocation to ESOP participants based on principal and interest payments of the note. Compensation expense is recognized based on the number of shares allocated to
ESOP participants each year and the average market price of the stock for the current year. Released ESOP shares become outstanding for earnings per share computations.
As compensation expense is incurred, the unearned ESOP shares account is reduced based on
the original cost of the stock. The difference between the cost and the average market price of shares released for allocation is applied to additional paid-in capital. ESOP compensation expense for the years ended June 30, 2019 and 2018,
was approximately $368,000 and $329,000, respectively.
The ESOP shares as of June 30, 2019 and 2018, were as follows:
|
|
2019
|
|
|
2018
|
|
Allocated and Committed to be Released Shares, Beginning of Year
|
|
|
110,228
|
|
|
|
99,205
|
|
Shares Allocated and Committed to be Released During the Year
|
|
|
11,023
|
|
|
|
11,023
|
|
Unallocated and Unreleased Shares, as of Year End
|
|
|
95,642
|
|
|
|
106,665
|
|
|
|
|
|
|
|
|
|
|
Total ESOP Shares
|
|
|
216,893
|
|
|
|
216,893
|
|
|
|
|
|
|
|
|
|
|
Fair Value of Unreleased Shares (In Thousands)
|
|
$
|
3,180
|
|
|
$
|
3,355
|
|
|
|
|
|
|
|
|
|
|
Stock Price
|
|
$
|
33.25
|
|
|
$
|
31.45
|
|
Note 13. Stock-Based Compensation
Recognition and Retention Plans
On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal
Bancorp, Inc. of Louisiana 2011 Recognition and Retention Plan and Trust Agreement as an incentive to retain personnel of experience and ability in key positions. The aggregate number of shares of the Company’s common stock available under
the 2011 Recognition Plan totaled 77,808 shares, all of which have been awarded.
Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number
of shares covered by the Recognition Plan award over five years. If the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award for
any reason other than the recipient’s death, disability, or following a change in control of the Company, the recipient shall forfeit the right to any shares subject to the awards that have not been earned.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 13.
|
Stock-Based Compensation (Continued)
|
Recognition and Retention Plans (Continued)
The cost associated with the 2011 Recognition Plan is based on a share price of $18.92 on
July 31, 2014, which represents the fair market price of the Company’s stock on the date on which the 2011 Recognition Plan shares were granted. The cost of the 2011 Recognition Plan is being recognized over the five year vesting period.
Stock Option Plans
On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp,
Inc. of Louisiana 2005 Stock Option Plan (the 2005 Option Plan) for the benefit of directors, officers, and other employees. The aggregate number of shares of common stock reserved for issuance under the Option Plan totaled 158,868 (as
adjusted). Both incentive stock options and non-qualified stock options may be granted under the plan. The 2005 Stock Option Plan terminated on June 8, 2015, however the 12,705 outstanding stock options as of June 30, 2019 will remain in
effect for the remainder of their original ten year terms.
On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal
Bancorp, Inc. of Louisiana 2011 Stock Option Plan (the 2011 Option Plan, together with the 2005 Option Plan, the Option Plan) for the benefit of directors, officers, and other employees. The aggregate number of shares of common stock
reserved for issuance under the 2011 Option Plan totaled 194,522. Both incentive stock options and non-qualified stock options may be granted under the Option Plan.
On August 19, 2010 and July 31, 2014, the Company granted 21,616 options and 2,133 options, respectively,
under the 2005 Option Plan that were previously forfeited (as adjusted for the conversion) at an exercise price of $10.93 and $18.92 per share, respectively. On January 31, 2012 and July 31, 2014, 165,344 options and 29,178 options,
respectively, were granted to directors and employees at an exercise price of $14.70 and $18.92 per share, respectively, under the 2011 Option Plan. As of June 30, 2019, there were 389 stock options available for future grant under the
2011 Option Plan.
Incentive stock options and non-qualified stock options granted under the Option Plan become vested and
exercisable at a rate of 20% per year over five years commencing one year from the date of the grant with an additional 20% vesting on each successive anniversary of the date the option was granted. No vesting shall occur after an
employee’s employment or service as a director is terminated. In the event of death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable. The Company
recognizes compensation expense during the vesting period based on the fair value of the option on the date of the grant.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 13.
|
Stock-Based Compensation (Continued)
|
Stock Incentive Plan
On November 12, 2014, the shareholders of the Company approved the adoption of the Company’s 2014
Stock Incentive Plan (the Stock Incentive Plan) for the benefit of employees and non-employee directors as an incentive to contribute to the success of the Company and to reward employees for outstanding performance and the attainment
of targeted goals. The Stock Incentive Plan covers a total of 150,000 shares, of which no more than 37,500 shares, or 25% of the plan, may be share awards. The balance of the plan is reserved for stock option awards which would
total 112,500 stock options assuming all the share awards are issued. All incentive stock options granted under the Stock Incentive Plan are intended to comply with the requirements of Section 422 of the Internal Revenue Code. On
October 26, 2015, the Company granted a total of 34,500 plan share awards and 103,500 stock options to directors, officers, and other key employees vesting ratably over five years. On February 5, 2019, the Company granted a total of
3,000 plan share awards and 13,500 stock options to key employees vesting ratably over five years. The Stock Incentive Plan cost is recognized over the five year vesting period.
Share Awards
Following is a summary of the status of the share awards outstanding under the 2011
Recognition Plan and Stock Incentive Plan during the fiscal years ended June 30, 2019 and 2018:
|
|
Awarded Shares
|
|
|
|
2019
|
|
|
2018
|
|
Balance - Beginning of Year
|
|
|
23,527
|
|
|
|
31,937
|
|
Granted
|
|
|
--
|
|
|
|
--
|
|
Forfeited
|
|
|
--
|
|
|
|
--
|
|
Earned and Issued
|
|
|
(8,410
|
)
|
|
|
(8,410
|
)
|
|
|
|
|
|
|
|
|
|
Balance - End of Year
|
|
|
15,117
|
|
|
|
23,527
|
|
Compensation expense pertaining to the 2011 Recognition Plan and the share awards under the Stock Incentive Plan was approximately
$167,000 and $162,000 for the years ended June 30, 2019 and 2018, respectively.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 13.
|
Stock-Based Compensation (Continued)
|
Stock Options
Following is a summary of the status of the options outstanding under the Option Plan and Stock Incentive
Plan during the fiscal years ended June 30, 2019 and 2018:
|
|
|
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
|
|
|
Weighted
|
|
|
Average
|
|
|
|
|
|
|
|
|
|
Average
|
|
|
Remaining
|
|
|
Aggregate
|
|
|
|
Number of
|
|
|
Exercise
|
|
|
Contract
|
|
|
Intrinsic
|
|
|
|
Shares
|
|
|
Price
|
|
|
Term
|
|
|
Value
|
|
Outstanding at June 30, 2018
|
|
|
292,050
|
|
|
$
|
17.79
|
|
|
|
5.05
|
|
|
$
|
3,986,887
|
|
Granted
|
|
|
13,500
|
|
|
|
31.25
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
(20,918
|
)
|
|
|
15.35
|
|
|
|
|
|
|
|
|
|
Forfeited
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
Outstanding at June 30, 2019
|
|
|
284,632
|
|
|
$
|
18.65
|
|
|
|
4.40
|
|
|
$
|
4,138,129
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Exercisable at June 30, 2019
|
|
|
225,265
|
|
|
$
|
17.12
|
|
|
|
3.73
|
|
|
$
|
3,642,423
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Outstanding at June 30, 2017
|
|
|
300,150
|
|
|
$
|
17.83
|
|
|
|
6.07
|
|
|
|
|
|
Granted
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
Exercised
|
|
|
(3,600
|
)
|
|
|
14.70
|
|
|
|
|
|
|
|
|
|
Forfeited
|
|
|
(4,500
|
)
|
|
|
14.70
|
|
|
|
|
|
|
|
|
|
Outstanding at June 30, 2018
|
|
|
292,050
|
|
|
$
|
17.79
|
|
|
|
5.05
|
|
|
$
|
3,986,887
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Options Exercisable at June 30, 2018
|
|
|
220,122
|
|
|
$
|
16.32
|
|
|
|
4.38
|
|
|
$
|
3,327,981
|
|
The fair value of each option granted is estimated on the grant date using the Black-Scholes model. The
following assumptions were made in estimating fair value.
|
|
2014 Stock
|
|
|
2014 Stock
|
|
|
|
|
|
|
Incentive Plan
|
|
|
Incentive Plan
|
|
|
2011 Option Plan
|
|
|
|
February 5, 2019
|
|
|
October 26, 2015
|
|
|
July 31, 2014
|
|
Dividend Yield
|
|
|
1.79
|
%
|
|
|
1.39
|
%
|
|
|
1.50
|
%
|
Expected Term
|
|
10 years
|
|
|
10 years
|
|
|
10 years
|
|
Risk-Free Interest Rate
|
|
|
2.71
|
%
|
|
|
2.07
|
%
|
|
|
2.58
|
%
|
Expected Life
|
|
10 years
|
|
|
10 years
|
|
|
10 years
|
|
Expected Volatility (1)
|
|
|
16.17
|
%
|
|
|
20.38
|
%
|
|
|
9.56
|
%
|
_______________
(1) Weekly volatility is annualized by multiplying by the square root of 52.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 13.
|
Stock-Based Compensation (Continued)
|
Stock Options
A summary of the status of the Company’s nonvested options as of June 30, 2019 and changes during the year
ended June 30, 2019 is as follows:
|
|
|
|
|
Weighted
|
|
|
|
|
|
|
Average
|
|
|
|
Number of
|
|
|
Exercise
|
|
|
|
Shares
|
|
|
Price
|
|
Nonvested at June 30, 2018
|
|
|
71,928
|
|
|
$
|
22.29
|
|
Granted
|
|
|
13,500
|
|
|
|
31.25
|
|
Vested
|
|
|
(26,061
|
)
|
|
|
22.02
|
|
Forfeited
|
|
|
--
|
|
|
|
--
|
|
Nonvested at June 30, 2019
|
|
|
59,367
|
|
|
$
|
24.45
|
|
For the years ended June 30, 2019 and 2018, compensation expense charged to operations for stock options granted under the
Option Plan and the Stock Incentive Plan was $135,000 and $136,000, respectively.
Note 14.
|
Off-Balance Sheet Activities
|
Credit Related Financial Instruments
The Bank is a party to credit related financial instruments with off-balance sheet risk
in the normal course of business to meet the financing needs of its customers. These financial instruments consist primarily of commitments to extend credit. Such commitments involve, to varying degrees, elements of credit and interest
rate risk in excess of the amount recognized in the consolidated balance sheets.
The Bank’s exposure to credit loss in the event of non-performance by the other party to loan commitments
is represented by the contractual amount of the commitment. The Bank follows the same credit policies in making commitments as it does for on-balance sheet instruments.
Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any
condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require a payment of a fee. The commitments for equity lines of credit may expire without being drawn upon.
Therefore, the total commitment amounts do not necessarily represent future cash requirements. The amount and type of collateral obtained, if deemed necessary by the Bank upon extension of credit, varies and is based on management’s credit
evaluation of the counterparty.
No material gains or losses are anticipated as a result of these transactions.
At June 30, 2019 and 2018, the following financial instruments were outstanding:
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Commitments to Grant Loans
|
|
$
|
40,582
|
|
|
$
|
43,595
|
|
Unfunded Commitments Under Lines of Credit
|
|
|
8,981
|
|
|
|
11,142
|
|
|
|
$
|
49,563
|
|
|
$
|
54,737
|
|
|
|
|
|
|
|
|
|
|
Fixed Rate Loans (3.75% - 5.50 % in 2019; 4.00% - 5.75% in 2018)
|
|
$
|
49,563
|
|
|
$
|
54,737
|
|
Variable Rate Loans (-- % in 2019 and 2018)
|
|
|
--
|
|
|
|
--
|
|
|
|
$
|
49,563
|
|
|
$
|
54,737
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 14.
|
Off-Balance Sheet Activities (Continued)
|
Cash Deposits
The Company periodically maintains cash balances in financial institutions that are in
excess of insured amounts. The Company has not experienced any losses and does not believe that significant credit risk exists as a result of this practice. At June 30, 2019, we had $15.1 million in cash deposits over the insured limit
of $250,000.
Regional Credit Concentration
A substantial portion of the Bank’s lending activity is with customers located within a
100 mile radius of the Shreveport, Louisiana metropolitan area, which includes areas of northwest Louisiana, northeast Texas and southwest Arkansas. Although concentrated within the region, the Bank has a diversified loan portfolio,
which should preclude the Bank from being dependent upon the well-being of any particular economic sector to ensure collectibility of any significant portion of its debtors’ loan contracts.
Other Credit Concentrations
The Bank has purchased, with recourse from the seller, a significant number of loans
from third-party mortgage originators. These loans are serviced by these entities. At June 30, 2019 and 2018, the balance of the loans outstanding being serviced by these entities was $4.8 million and $5.8 million, respectively.
Interest Rate Floors and Caps
The Bank writes interest rate floors and caps into its variable rate mortgage loan
contracts and loan servicing agreements in an attempt to manage its interest rate exposure. Such floors and caps enable customers to transfer, modify, or reduce their interest rate risk, which, in turn, creates an off-balance sheet
market risk to the Bank. At June 30, 2019, the Bank’s loan portfolio contained approximately $32.6 million of loans in which the loan contracts or servicing agreements possessed interest rate floors and caps. Of this amount, $4.8
million consisted of purchased loans, which were originated by third-party mortgage originators.
Note 15.
|
Related Party Events
|
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.
An analysis of the activity in loans made to such borrowers (both direct and indirect), including lines
of credit, is summarized as follows for the years ended June 30, 2019 and 2018:
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Balance – Beginning of Year
|
|
$
|
2,602
|
|
|
$
|
2,842
|
|
Additions
|
|
|
1,071
|
|
|
|
236
|
|
Principal Payments
|
|
|
(846
|
)
|
|
|
(476
|
)
|
|
|
|
|
|
|
|
|
|
Balance – End of Year
|
|
$
|
2,827
|
|
|
$
|
2,602
|
|
Deposits from related parties held by the Bank at June 30, 2019 and 2018, amounted to $3.9 million and
$3.5 million, respectively.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 16. Regulatory Matters
The Bank is subject to various regulatory capital requirements administered by federal banking agencies.
Failure to meet minimum capital requirements can initiate certain mandatory and possibly other discretionary actions by regulators that, if undertaken, could have a direct material effect on the Bank’s financial statements. Under capital
adequacy guidelines and the regulatory framework for prompt corrective action, the Bank must meet specific capital requirements that involve quantitative measures of the Bank’s assets,
liabilities, and certain off-balance-sheet items, as calculated under regulatory accounting practices. The Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk
weightings, and other factors.
The Bank is required to maintain minimum capital ratios under OCC regulatory guidelines in order to
ensure capital adequacy. Management believes, as of June 30, 2019 and 2018, that the Bank met all OCC capital adequacy requirements to which it is subject.
As of June 30, 2019, the most recent notification from the OCC categorized the Bank as
well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized, the Bank must maintain minimum capital ratios, which are different than those required to meet OCC capital adequacy
requirements.
There are no conditions or events since that notification that management believes may have changed the
Bank’s category. The Bank was also classified as well capitalized at June 30, 2019.
The Bank’s actual and required capital amounts and ratios for OCC regulatory capital adequacy purposes
are presented below as of June 30, 2019 and 2018:
|
|
|
|
|
|
|
|
|
|
Required for Capital
|
|
|
|
|
|
Actual
|
|
|
Adequacy Purposes
|
|
|
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
|
|
|
(Dollars in Thousands)
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Capital
|
|
(1
|
)
|
|
$
|
50,171
|
|
|
|
11.37
|
%
|
|
$
|
13,235
|
|
|
|
3.00
|
%
|
Common Equity Tier 1
|
|
(2
|
)
|
|
|
50,171
|
|
|
|
16.51
|
|
|
|
13,678
|
|
|
|
4.50
|
|
Tangible Capital
|
|
(1
|
)
|
|
|
50,171
|
|
|
|
11.37
|
|
|
|
6,618
|
|
|
|
1.50
|
|
Total Risk-Based Capital
|
|
(2
|
)
|
|
|
53,623
|
|
|
|
17.64
|
|
|
|
24,316
|
|
|
|
8.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Core Capital
|
|
(1
|
)
|
|
$
|
47,981
|
|
|
|
11.36
|
%
|
|
$
|
12,675
|
|
|
|
3.00
|
%
|
Common Equity Tier 1
|
|
(2
|
)
|
|
|
47,981
|
|
|
|
16.65
|
|
|
|
12,969
|
|
|
|
4.50
|
|
Tangible Capital
|
|
(1
|
)
|
|
|
47,981
|
|
|
|
11.36
|
|
|
|
6,337
|
|
|
|
1.50
|
|
Total Risk-Based Capital
|
|
(2
|
)
|
|
|
51,406
|
|
|
|
17.84
|
|
|
|
23,057
|
|
|
|
8.00
|
|
_____________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts and Ratios to Adjusted Total Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Amounts and Ratios to Total Risk-Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 16. Regulatory Matters (Continued)
The Bank’s actual and required capital amounts and ratios to be well capitalized under prompt corrective
action provisions are presented below as of June 30, 2019 and 2018:
|
|
|
|
|
|
|
|
|
|
|
Required to be
|
|
|
|
|
|
|
Actual
|
|
|
Well Capitalized
|
|
|
|
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
|
|
|
|
(Dollars in Thousands)
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Capital
|
|
|
(1
|
)
|
|
$
|
50,171
|
|
|
|
11.37
|
%
|
|
$
|
22,059
|
|
|
|
5.00
|
%
|
Common Equity Tier 1
|
|
|
(2
|
)
|
|
|
50,171
|
|
|
|
16.51
|
|
|
|
19,756
|
|
|
|
6.50
|
|
Tier 1 Risk-Based Capital
|
|
|
(2
|
)
|
|
|
50,171
|
|
|
|
16.51
|
|
|
|
24,316
|
|
|
|
8.00
|
|
Total Risk-Based Capital
|
|
|
(2
|
)
|
|
|
53,623
|
|
|
|
17.64
|
|
|
|
30,395
|
|
|
|
10.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 Leverage Capital
|
|
|
(1
|
)
|
|
$
|
47,981
|
|
|
|
11.36
|
%
|
|
$
|
21,125
|
|
|
|
5.00
|
%
|
Common Equity Tier 1
|
|
|
(2
|
)
|
|
|
47,981
|
|
|
|
16.65
|
|
|
|
18,734
|
|
|
|
6.50
|
|
Tier 1 Risk-Based Capital
|
|
|
(2
|
)
|
|
|
47,981
|
|
|
|
16.65
|
|
|
|
23,057
|
|
|
|
8.00
|
|
Total Risk-Based Capital
|
|
|
(2
|
)
|
|
|
51,406
|
|
|
|
17.84
|
|
|
|
28,821
|
|
|
|
10.00
|
|
__________________________
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Amounts and Ratios to Adjusted Total Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(2) Amounts and Ratios to Total Risk-Weighted Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The actual and required capital amounts and ratios applicable to the Bank for the years ended June 30,
2019 and 2018 are presented in the following tables, including a reconciliation of capital under generally accepted accounting principles (GAAP) to such amounts reported for regulatory purposes:
|
|
|
|
|
|
|
|
Minimum for Capital
|
|
|
|
Actual
|
|
|
Adequacy Purposes
|
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
|
(Dollars in Thousands)
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity, and Ratio to Average Total Assets
|
|
|
11.39
|
%
|
|
$
|
50,559
|
|
|
|
|
|
|
|
Investments in and Advances to Nonincludable Subsidiaries
|
|
|
|
|
|
|
(118
|
)
|
|
|
|
|
|
|
Unrealized Gains on Securities Available-for-Sale
|
|
|
|
|
|
|
(20
|
)
|
|
|
|
|
|
|
Non-significant investments Capital Stock
|
|
|
|
|
|
|
(250
|
)
|
|
|
|
|
|
|
Tangible Capital, and Ratio to Adjusted Total Assets
|
|
|
11.37
|
%
|
|
$
|
50,171
|
|
|
|
1.50
|
%
|
|
$
|
6,618
|
|
Tier 1 (Core) Capital, and Ratio to Adjusted Total Assets
|
|
|
11.37
|
%
|
|
$
|
50,171
|
|
|
|
3.00
|
%
|
|
|
13,235
|
|
Tier 1 (Core) Capital, and Ratio to Risk-Weighted Assets
|
|
|
16.51
|
%
|
|
|
50,171
|
|
|
|
4.50
|
%
|
|
|
13,678
|
|
Allowance for Loan Losses
|
|
|
|
|
|
|
3,452
|
|
|
|
|
|
|
|
|
|
Excess Allowance for Loan Losses
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
Total Risk-Based Capital, and Ratio to Risk-Weighted Assets
|
|
|
17.64
|
%
|
|
$
|
53,623
|
|
|
|
8.00
|
%
|
|
$
|
24,316
|
|
Average Total Assets
|
|
|
|
|
|
$
|
441,564
|
|
|
|
|
|
|
|
|
|
Adjusted Total Assets
|
|
|
|
|
|
$
|
441,176
|
|
|
|
|
|
|
|
|
|
Risk-Weighted Assets
|
|
|
|
|
|
$
|
303,946
|
|
|
|
|
|
|
|
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 16. Regulatory Matters (Continued)
|
|
|
|
|
|
|
|
Minimum for Capital
|
|
|
|
Actual
|
|
|
Adequacy Purposes
|
|
|
|
Ratio
|
|
|
Amount
|
|
|
Ratio
|
|
|
Amount
|
|
|
|
(Dollars in Thousands)
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Equity, and Ratio to Average Total Assets
|
|
|
11.10
|
%
|
|
$
|
46,775
|
|
|
|
|
|
|
|
Investments in and Advances to
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonincludable Subsidiaries
|
|
|
|
|
|
|
(119
|
)
|
|
|
|
|
|
|
Unrealized Gains on Securities Available-for-Sale
|
|
|
|
|
|
|
1,325
|
|
|
|
|
|
|
|
Tangible Capital, and Ratio to Adjusted Total Assets
|
|
|
11.36
|
%
|
|
$
|
47,981
|
|
|
|
1.50
|
%
|
|
$
|
6,337
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 (Core) Capital, and Ratio to Adjusted Total Assets
|
|
|
11.36
|
%
|
|
$
|
47,981
|
|
|
|
3.00
|
%
|
|
|
12,675
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 (Core) Capital, and Ratio to Risk-Weighted Assets
|
|
|
16.65
|
%
|
|
|
47,981
|
|
|
|
4.50
|
%
|
|
|
12,969
|
|
Allowance for Loan Losses
|
|
|
|
|
|
|
3,425
|
|
|
|
|
|
|
|
|
|
Excess Allowance for Loan Losses
|
|
|
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Risk-Based Capital, and Ratio to Risk-Weighted Assets
|
|
|
17.84
|
%
|
|
$
|
51,406
|
|
|
|
8.00
|
%
|
|
$
|
23,057
|
|
Average Total Assets
|
|
|
|
|
|
$
|
421,548
|
|
|
|
|
|
|
|
|
|
Adjusted Total Assets
|
|
|
|
|
|
$
|
422,504
|
|
|
|
|
|
|
|
|
|
Risk-Weighted Assets
|
|
|
|
|
|
$
|
288,208
|
|
|
|
|
|
|
|
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 17. Restrictions on Dividends
Banking regulations place certain restrictions on dividends paid by the Bank to the
Company. The Company is dependent upon dividends from the Bank to provide funds for the payment of dividends to the Company’s shareholders, interest payments on the subordinated debt and other general corporate purposes. The Bank’s
ability to pay cash dividends directly or indirectly to the Company is governed by federal law, regulations and related guidance. These include the requirement that the Bank must receive approval to declare a dividend if the total amount
of all dividends, including the proposed dividend, declared by the Bank in any current year exceeds the total of the Bank’s net income for the current year to date, combined with its retained net income for the previous two years. The
term “retained net income” as defined by federal regulations means the Bank’s net income for a specified period less the total amount of all dividends declared in that period.
The Bank may not pay dividends to the Company if, after paying those dividends, it
would fail to meet the required minimum levels under risk-based capital guidelines or if the bank regulators have notified the Bank that it is in need of more than normal supervision. Under the Federal Deposit Insurance Act, an insured
depository institution such as the Bank is prohibited from making capital distributions, including the payment of dividends, if, after making such distribution, the institution would become “undercapitalized” (as such term is used in the
Federal Deposit Insurance Act). Payment of dividends by the Bank also may be restricted at any time at the discretion of the appropriate regulator if it deems the payment to constitute an unsafe and unsound banking practice.
For the years ended June 30, 2019 and 2018, the Bank paid a total of $2.5 million
and $2.0 million, respectively, in cash dividends to the Company. At June 30, 2019, the Bank’s retained net income for the calendar years ended December 31, 2018 and 2017 and six months ended June 30, 2019, less the dividends declared
and paid during those periods, totaled $5.3 million.
Note 18. 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.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 18. Fair Value Disclosures (Continued)
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.
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
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.
Off-Balance Sheet Credit-Related Instruments
Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to
enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.
The fair value of interest rate floors and caps contained in some loan servicing agreements and variable
rate mortgage loan contracts are considered immaterial within the context of fair value disclosure requirements. Accordingly, no fair value estimate is provided for these instruments.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 18. Fair Value Disclosures (Continued)
At June 30, 2019 and 2018, the carrying amount and estimated fair values of the Company’s financial
instruments were as follows:
|
|
2019
|
|
|
2018
|
|
|
|
Carrying
|
|
|
Estimated
|
|
|
Carrying
|
|
|
Estimated
|
|
|
|
Value
|
|
|
Fair Value
|
|
|
Value
|
|
|
Fair Value
|
|
|
|
(In Thousands)
|
|
Financial Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
18,108
|
|
|
$
|
18,108
|
|
|
$
|
15,867
|
|
|
$
|
15,867
|
|
Securities Available-for-Sale
|
|
|
41,655
|
|
|
|
41,655
|
|
|
|
29,324
|
|
|
|
29,324
|
|
Securities to be Held-to-Maturity
|
|
|
25,349
|
|
|
|
25,532
|
|
|
|
28,888
|
|
|
|
27,818
|
|
Loans Held-for-Sale
|
|
|
8,608
|
|
|
|
8,608
|
|
|
|
6,762
|
|
|
|
6,762
|
|
Loans Receivable
|
|
$
|
324,134
|
|
|
$
|
310,812
|
|
|
$
|
317,493
|
|
|
$
|
314,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financial Liabilities
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
$
|
388,164
|
|
|
$
|
368,212
|
|
|
$
|
360,260
|
|
|
$
|
345,347
|
|
Advances from FHLB
|
|
|
1,355
|
|
|
|
1,246
|
|
|
|
11,637
|
|
|
|
11,517
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Off-Balance Sheet Items
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Mortgage Loan Commitments
|
|
$
|
8,981
|
|
|
$
|
8,981
|
|
|
$
|
5,827
|
|
|
$
|
5,827
|
|
The estimated fair values presented above could be materially different than net realizable value and are
only indicative of the individual financial instrument’s fair value. Accordingly, these estimates should not be considered an indication of the fair value of the Company taken as a whole.
The Company follows the guidance of ASC 820, Fair Value Measurements.
ASC 820 establishes a framework for measuring fair value and expands disclosures about fair value measurements. This standard was issued to establish a uniform definition of fair value. The definition of fair value under ASC 820 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:
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 18. Fair Value Disclosures (Continued)
•
|
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 year ended June 30, 2019.
Fair values of assets and liabilities measured on a recurring basis at June 30, 2019 and 2018 are as
follows:
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLMC
|
|
$
|
--
|
|
|
$
|
8,080
|
|
|
$
|
--
|
|
|
$
|
8,080
|
|
FNMA
|
|
|
--
|
|
|
|
25,277
|
|
|
|
--
|
|
|
|
25,277
|
|
GNMA
|
|
|
--
|
|
|
|
8,298
|
|
|
|
--
|
|
|
|
8,298
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
--
|
|
|
$
|
41,655
|
|
|
$
|
--
|
|
|
$
|
41,655
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 18. Fair Value Disclosures (Continued)
|
|
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Available-for-Sale
|
|
|
|
|
|
|
|
|
|
|
|
|
Debt Securities
|
|
|
|
|
|
|
|
|
|
|
|
|
FHLMC
|
|
$
|
--
|
|
|
$
|
7,085
|
|
|
$
|
--
|
|
|
$
|
7,085
|
|
FNMA
|
|
|
--
|
|
|
|
11,912
|
|
|
|
--
|
|
|
|
11,912
|
|
GNMA
|
|
|
--
|
|
|
|
10,327
|
|
|
|
--
|
|
|
|
10,327
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
--
|
|
|
$
|
29,324
|
|
|
$
|
--
|
|
|
$
|
29,324
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
The Company did not record any liabilities at fair market value for which measurement of the fair value
was made on a recurring basis at June 30, 2019 or 2018.
The following tables present the Company’s assets and liabilities measured at fair value on a
non-recurring basis at June 30, 2019 and 2018.
|
|
|
|
June 30, 2019
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired Loans,
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Allowance
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
7,000
|
|
|
$
|
7,000
|
|
Other Real Estate Owned
|
|
|
--
|
|
|
|
--
|
|
|
|
1,366
|
|
|
|
1,366
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
8,366
|
|
|
$
|
8,366
|
|
|
|
|
|
June 30, 2018
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Assets:
|
|
|
|
|
|
|
|
|
|
|
|
|
Impaired Loans,
|
|
|
|
|
|
|
|
|
|
|
|
|
Net of Allowance
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
8,448
|
|
|
$
|
8,448
|
|
Other Real Estate Owned
|
|
|
--
|
|
|
|
--
|
|
|
|
1,177
|
|
|
|
1,177
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$
|
--
|
|
|
$
|
--
|
|
|
$
|
9,625
|
|
|
$
|
9,625
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 19. Earnings Per Common Share
The following table presents the components of average outstanding common shares for
the years ended June 30, 2019 and 2018:
|
|
|
|
|
|
|
Average Common Shares Issued
|
|
|
1,873,789
|
|
|
|
1,918,831
|
|
Average Unearned ESOP Shares
|
|
|
(104,195
|
)
|
|
|
(115,724
|
)
|
Average Unearned RRP Trust Shares
|
|
|
(1,858
|
)
|
|
|
(3,572
|
)
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common
|
|
|
|
|
|
|
|
|
Shares Used in Basic EPS
|
|
|
1,767,736
|
|
|
|
1,799,535
|
|
|
|
|
|
|
|
|
|
|
Effect of Dilutive Securities
|
|
|
|
|
|
|
|
|
Stock Options
|
|
|
126,275
|
|
|
|
111,592
|
|
|
|
|
|
|
|
|
|
|
Weighted Average Number of Common
|
|
|
|
|
|
|
|
|
Shares and Dilutive Potential Common
|
|
|
|
|
|
|
|
|
Shares Used in Dilutive EPS
|
|
|
1,894,011
|
|
|
|
1,911,127
|
|
Earnings per share are computed using the weighted average number of shares outstanding as prescribed in
GAAP. For the years ended June 30, 2019 and 2018, there were outstanding options to purchase 284,465 and 292,050 shares, respectively, at a weighted
average share price of $18.07 per share for 2019 and $17.87 per share for 2018.
Note 20. Subsequent Events
In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date that the financial statements were available to be issued.
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 21. Parent Company Financial Statements
Financial information pertaining only to Home Federal Bancorp, Inc. of Louisiana as of June 30, 2019 and
2018 is as follows:
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Condensed Balance Sheets
June 30, 2019 and 2018
|
|
June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Assets
|
|
|
|
|
|
|
Cash and Cash Equivalents
|
|
$
|
64
|
|
|
$
|
128
|
|
Investment in Subsidiary
|
|
|
50,559
|
|
|
|
47,024
|
|
Other Assets
|
|
|
209
|
|
|
|
213
|
|
|
|
|
|
|
|
|
|
|
Total Assets
|
|
$
|
50,832
|
|
|
$
|
47,365
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity
|
|
|
|
|
|
|
|
|
Borrowings
|
|
$
|
450
|
|
|
$
|
300
|
|
Other Liabilities
|
|
|
4
|
|
|
|
28
|
|
Stockholders’ Equity
|
|
|
50,342
|
|
|
|
47,037
|
|
|
|
|
|
|
|
|
|
|
Total Liabilities and Stockholders’ Equity
|
|
$
|
50,832
|
|
|
$
|
47,365
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Condensed Statements of Operations
For the Years Ended June 30, 2019 and 2018
|
|
For the Years Ended June 30,
|
|
|
|
2019
|
|
|
2018
|
|
|
|
(In Thousands)
|
|
Equity in Undistributed Earnings of Subsidiary
|
|
$
|
4,968
|
|
|
$
|
3,791
|
|
Interest Income
|
|
|
68
|
|
|
|
74
|
|
|
|
|
|
|
|
|
|
|
Total Income
|
|
|
5,036
|
|
|
|
3,865
|
|
|
|
|
|
|
|
|
|
|
Operating Expenses
|
|
|
344
|
|
|
|
377
|
|
Interest Expense
|
|
|
9
|
|
|
|
4
|
|
|
|
|
|
|
|
|
|
|
Total Expense
|
|
|
353
|
|
|
|
381
|
|
|
|
|
|
|
|
|
|
|
Income Before Income Tax Benefit
|
|
|
4,683
|
|
|
|
3,484
|
|
Income Tax Benefit
|
|
|
(60
|
)
|
|
|
(84
|
)
|
|
|
|
|
|
|
|
|
|
Net Income
|
|
$
|
4,743
|
|
|
$
|
3,568
|
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA AND SUBSIDIARY
Notes to Consolidated Financial Statements
Note 21. Parent Company Financial Statements (Continued)
HOME FEDERAL BANCORP, INC. OF LOUISIANA
Condensed Statements of Cash Flows
For the Years Ended June 30, 2019 and 2018
|
|
For the Years Ended June 30,
|
|
|
|
|
|
|
|
|
|
|
(In Thousands)
|
|
Operating Activities
|
|
|
|
|
|
|
Net Income
|
|
$
|
4,743
|
|
|
$
|
3,568
|
|
Adjustments to Reconcile Net Income to Net
|
|
|
|
|
|
|
|
|
Cash Used in Operating Activities
|
|
|
|
|
|
|
|
|
Equity in Undistributed Earnings of Subsidiary
|
|
|
(4,968
|
)
|
|
|
(3,791
|
)
|
Decrease (Increase) in Other Assets
|
|
|
4
|
|
|
|
62
|
|
(Decrease) Increase in Other Liabilities
|
|
|
11
|
|
|
|
(11
|
)
|
|
|
|
|
|
|
|
|
|
Net Cash Used in Operating Activities
|
|
|
(210
|
)
|
|
|
(172
|
)
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Financing Activities
|
|
|
|
|
|
|
|
|
Distribution from Subsidiary
|
|
|
2,500
|
|
|
|
2,000
|
|
Proceeds from Stock Options Exercised
|
|
|
325
|
|
|
|
53
|
|
Proceeds of Borrowings
|
|
|
900
|
|
|
|
800
|
|
Repayment of Borrowings
|
|
|
(750
|
)
|
|
|
(500
|
)
|
Proceeds Received from Subsidiary on Stock Compensation
|
|
|
|
|
|
|
|
|
Programs
|
|
|
669
|
|
|
|
629
|
|
Company Stock Purchased
|
|
|
(2,447
|
)
|
|
|
(1,955
|
)
|
Dividends Paid
|
|
|
(1,051
|
)
|
|
|
(924
|
)
|
|
|
|
|
|
|
|
|
|
Net Cash Provided by Financing Activities
|
|
|
146
|
|
|
|
103
|
|
|
|
|
|
|
|
|
|
|
Decrease in Cash and Cash Equivalents
|
|
|
(64
|
)
|
|
|
(69
|
)
|
Cash and Cash Equivalents, Beginning of Year
|
|
|
128
|
|
|
|
197
|
|
|
|
|
|
|
|
|
|
|
Cash and Cash Equivalents, End of Year
|
|
$
|
64
|
|
|
$
|
128
|
|
Item 9. Changes in and Disagreements With Accountants on Accounting and Financial Disclosure
Not applicable.
Item 9A. Controls and Procedures
(a)
|
Our management evaluated, with the participation of our principal executive officer and principal financial officer, the effectiveness of our disclosure controls and procedures (as defined in Rule 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 on such evaluation, our principal executive officer and principal financial officer have concluded that our disclosure
controls and procedures are designed to ensure that information required to be disclosed by us in the reports that we file or submit under the Securities Exchange Act of 1934 is recorded, processed, summarized, and reported
within the time periods specified in the SEC’s rules and regulations and are operating in an effective manner.
|
(b)
|
Management’s Report on Internal Control over Financial Reporting
|
Management is responsible for establishing and maintaining adequate internal control over financial
reporting, as such term is defined in Exchange Act Rule 13a-15(f). The Company’s internal control over financial reporting includes those policies and procedures that (i) pertain to the maintenance of records that, in reasonable detail,
accurately and fairly reflect the transactions and dispositions of the assets of the Company; (ii) provide reasonable assurance that transactions are recorded as necessary to permit preparation of financial statements in accordance with
generally accepted accounting principles and that receipts and expenditures of the Company are being made only in accordance with authorizations of management and directors of the Company; and (iii) provide reasonable assurance
regarding prevention or timely detection of unauthorized acquisition, use, or disposition of the Company’s assets that could have a material effect on the financial statements.
Internal control over financial reporting is designed to provide reasonable assurance regarding the
reliability of financial reporting and the preparation of financial statements prepared for external purposes in accordance with generally accepted accounting principles. Because of its inherent limitations, internal control over
financial reporting may not prevent or detect misstatements. Also, projections of any evaluation of effectiveness to future periods are subject to the risk that controls may become inadequate because of changes in conditions, or that
the degree of compliance with the policies or procedures may deteriorate.
Under the supervision and with the participation of management, including our principal executive officer
and principal financial officer, we conducted an evaluation of the effectiveness of our internal control over financial reporting based on the framework in Internal Control — Integrated Framework issued by the Committee of Sponsoring
Organizations of the Treadway Commission. Based on our evaluation under the framework in Internal Control — Integrated Framework, management concluded that our internal control over financial reporting was effective as of June 30, 2019.
(c)
|
No change in the Company’s internal control over financial reporting (as defined in rules 13a-15(f) and 15d-15(f) under the Securities Exchange Act of 1934) occurred during the most recent fiscal quarter that has
materially affected, or is reasonably likely to materially affect, its internal control over financial reporting.
|
Item 9B. Other Information
Not applicable.
PART III
Item 10. Directors, Executive Officers, and Corporate Governance
The information required herein is incorporated by reference from the sections captioned “Information with Respect to
Nominees for Director, Continuing Directors, and Executive Officers” and “Beneficial Ownership of Common Stock by Certain Beneficial Owners and Management -Section 16(a) Beneficial Ownership Reporting Compliance” in the Registrant’s
Proxy Statement to be filed with the Securities and Exchange Commission within 120 days of June 30, 2019 (“Proxy Statement”).
Code of Ethics. Home Federal Bancorp has adopted
a Code of Ethics that applies to its principal executive officer and principal financial officer, as well as directors, other officers, and employees of Home Federal Bancorp and Home Federal Bank. A copy of the Code of Ethics may be
obtained without charge upon request made to Glen W. Brown, Home Federal Bank, 222 Florida Street, Shreveport, Louisiana 71105.
Item 11. Executive Compensation
The information required herein is incorporated by reference from the section captioned “Management Compensation” in the
Proxy Statement to be filed with the Securities and Exchange Commission within 120 days of June 30, 2019.
Item 12. Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters
Security Ownership of Certain Beneficial Owners and Management. The information required herein is incorporated by reference from the section captioned “Beneficial Ownership of Common Stock by Certain Beneficial Owners and Management” in the Proxy Statement to be
filed with the Securities and Exchange Commission within 120 days of June 30, 2019.
Equity Compensation Plan Information. The
following table provides information as of June 30, 2019 with respect to shares of common stock that may be issued under our existing equity compensation plans, which consist of the 2005 and 2011 Stock Option Plans, 2011 Recognition
and Retention Plan, and 2014 Stock Incentive Plan, all of which were approved by our shareholders.
|
|
Number of Securities to be
Issued Upon Exercise of
Outstanding Options,
Warrants
and Rights
(a)
|
|
|
Weighted-Average
Exercise Price of
Outstanding
Options, Warrants
and Rights
(b)
|
|
|
Number of Securities
Remaining Available for
Future Issuance Under Equity
Compensation Plans
(Excluding Securities
Reflected in Column(a))
(c)
|
|
Equity compensation plans approved by security holders
|
|
|
302,749
|
|
|
$
|
18.65
|
|
|
|
389
|
|
Equity compensation plans not approved by security holders
|
|
|
--
|
|
|
|
--
|
|
|
|
--
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
|
302,749
|
|
|
$
|
18.65
|
|
|
|
389
|
|
Item 13. Certain Relationships and Related Transactions and Director Independence
The information required herein is incorporated by reference from the section captioned “Indebtedness of Management and
Related Party Transactions” in the Proxy Statement to be filed with the Securities and Exchange Commission within 120 days of June 30, 2019.
Item 14. Principal Accounting Fees and Services
The information required herein is incorporated by reference from the section captioned “Ratification of Appointment of
Independent Registered Public Accounting Firm — Audit Fees” in the Proxy Statement to be filed with the Securities and Exchange Commission within 120 days of June 30, 2019.
PART IV
Item 15. Exhibits and Financial Statement Schedules
(a) The following documents are filed as part of this report and are incorporated herein by reference from Item 8 hereof:
Report of Independent Registered Public Accounting Firm
Consolidated Balance Sheets as of June 30, 2019 and 2018
Consolidated Statements of Operations for the Years Ended June 30, 2019 and 2018
Consolidated Statements of Comprehensive Income for the Years Ended June 30, 2019 and 2018
Consolidated Statements of Changes in Stockholders’ Equity for the Years Ended June 30, 2019 and 2018
Consolidated Statements of Cash Flows for the Years Ended June 30, 2019 and 2018
Notes to Consolidated Financial Statements
The following exhibits are filed as part of the Form 10-K, and this list includes the Exhibit Index:
|
|
|
|
|
3.1
|
|
|
|
(1)
|
3.2
|
|
|
|
(1)
|
4.1
|
|
|
|
(1)
|
4.2
|
|
|
|
Filed Herewith
|
10.1
|
|
|
|
(2)
|
10.2
|
|
|
|
(3)
|
10.3
|
|
|
|
(3)
|
10.4
|
|
|
|
(4)
|
10.5
|
|
|
|
(4)
|
10.6
|
|
|
|
(4)
|
10.7
|
|
|
|
(5)
|
10.8
|
|
|
|
(6)
|
10.9
|
|
|
|
(7)
|
10.10
|
|
|
|
(8)
|
10.11
|
|
|
|
(9)
|
10.12
|
|
|
|
(10)
|
23.0
|
|
|
|
Filed Herewith
|
31.1
|
|
|
|
Filed Herewith
|
31.2
|
|
|
|
Filed Herewith
|
32.0
|
|
|
|
Filed Herewith
|
__________________
(Table continued and footnotes on following page)
|
|
|
|
|
101.INS
|
|
XBRL Instance Document.
|
|
Filed Herewith
|
101.SCH
|
|
XBRL Taxonomy Extension Schema Document.
|
|
Filed Herewith
|
101.CAL
|
|
XBRL Taxonomy Extension Calculation Linkbase Document.
|
|
Filed Herewith
|
101.LAB
|
|
XBRL Taxonomy Extension Label Linkbase Document.
|
|
Filed Herewith
|
101.PRE
|
|
XBRL Taxonomy Extension Presentation Linkbase Document.
|
|
Filed Herewith
|
101.DEF
|
|
XBRL Taxonomy Extension Definitions Linkbase Document.
|
|
Filed Herewith
|
__________________
*
|
Denotes a management contract or compensatory plan or arrangement.
|
(1)
|
Incorporated herein by reference from the Company’s Registration Statement on Form S-1, as amended, filed with the SEC on September 3, 2010 (File No. 333-169230).
|
(2)
|
Incorporated herein by reference from the Company’s Definitive Schedule 14A filed with the SEC on June 29, 2005 (File No. 000-51117).
|
(3)
|
Incorporated by reference from the Company’s definitive proxy statement for the Annual Meeting of Shareholders held on December 23, 2011 filed with the Commission on October 28, 2011 (File No.
001-35019).
|
(4)
|
Incorporated by reference from the Company’s Current Report on Form 8-K filed with the SEC on December 28, 2012 (File No. 001-35019).
|
(5)
|
Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed with the SEC on May 10, 2013 (File No. 001-35019).
|
(6)
|
Incorporated by reference from the Company’s Current Report on Form 8-K filed with the SEC on July 9, 2014 (File No. 001-35019).
|
(7)
|
Incorporated by reference from the Company’s definitive proxy statement for the Annual Meeting of Shareholders held on November 12, 2014 (File No. 001-35019).
|
(8)
|
Incorporated by reference from the Company’s Current Report on Form 8-K filed with the SEC on February 11, 2016 (File No. 001-35019).
|
(9)
|
Incorporated by reference from the Company’s Quarterly Report on Form 10-Q filed with the SEC on February 9, 2018 (File No. 001-35019).
|
(10)
|
Incorporated herein by reference from the Company’s Current Report on Form 8-K filed with the SEC on December 18, 2017 (File No. 001-35019).
|
Item 16. Form 10-K Summary
None.
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant had duly caused
this report to be signed on its behalf by the undersigned, thereunto duly authorized.
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA
|
|
Date: September 30, 2019
|
By:
|
/s/James R. Barlow
|
|
|
|
James R. Barlow
|
|
|
|
President and Chief Executive Officer
|
|
Pursuant to the requirements of the Securities Exchange Act of 1934, this report has been signed below by the following
persons on behalf of the registrant and in the capacities and on the dates indicated.
Name
|
|
Title
|
|
Date
|
|
|
|
|
|
/s/Daniel R. Herndon
|
|
|
|
|
Daniel R. Herndon
|
|
Chairman of the Board and Special Projects Manager
|
|
September 30, 2019
|
|
|
|
|
|
/s/James R. Barlow
|
|
|
|
|
James R. Barlow
|
|
Director, President and Chief Executive Officer
(Principal Executive Officer)
|
|
September 30, 2019
|
/s/Glen W. Brown
|
|
|
|
|
Glen W. Brown
|
|
Senior Vice President and Chief Financial Officer
(Principal Financial and Accounting Officer)
|
|
September 30, 2019
|
/s/Walter T. Colquitt, III
|
|
|
|
|
Walter T. Colquitt, III
|
|
Director
|
|
September 30, 2019
|
/s/Scott D. Lawrence
|
|
|
|
|
Scott D. Lawrence
|
|
Director
|
|
September 30, 2019
|
/s/Mark M. Harrison
|
|
|
|
|
Mark M. Harrison
|
|
Director
|
|
September 30, 2019
|
|
|
|
|
|
Woodus K. Humphrey
|
|
Director
|
|
September __, 2019
|
/s/Thomas Steen Trawick, Jr.
|
|
|
|
|
Thomas Steen Trawick, Jr.
|
|
Director
|
|
September 30, 2019
|
/s/Timothy W. Wilhite, Esq.
|
|
|
|
|
Timothy W. Wilhite, Esq.
|
|
Director
|
|
September 30, 2019
|
|
|
|
|
|