Washington, D.C. 20549

FORM 10-K

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  Yes  ☒  No  ☐

General.  At June 30, 2026, our net loan portfolio amounted to $475.491 million, representing approximately 73.91% of total assets at that date. Historically, our principal lending activity was the origination of one-to-four family residential loans. At June 30, 2026, one-to-four family residential loans amounted to $164.214 million, or 34.18% of the total loan portfolio. We have sold a substantial amount of our fixed-rate conforming one-to-four family residential loans to correspondent banks. Commercial real estate loans amounted to $141.002 million, or 29.34% of the total loan portfolio, at June 30, 2026.

A savings institution generally may not make loans to one borrower and related entities in an amount which exceeds 15% of its unimpaired capital and surplus, although loans in an amount equal to an additional 10% of unimpaired capital and surplus may be made to a borrower, if the loans are fully secured by readily marketable securities. In addition, upon application, the Office of the Comptroller of the Currency permits a savings institution to lend up to an additional 15% of unimpaired capital and surplus to one borrower to develop domestic residential housing units. At June 30, 2026, our regulatory limit on loans to one borrower was $10.195 million, and the five largest loans or groups of loans to one borrower, including related entities, aggregated $6.751 million, $5.678 million, $5.411 million, $5.222 million, and $5.051 million. Each of our five largest loans or groups of loans was originated with strong guarantor support to known borrowers in our market area and was performing in accordance with its terms at June 30, 2026.

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Although federal laws and regulations permit savings institutions to originate and purchase loans secured by real estate located throughout the United States, we concentrate our lending activity in our primary market area in Caddo, Bossier and Webster Parishes, Louisiana and the surrounding area. Subject to our loans-to-one borrower limitation, we are permitted to invest without limitation in residential mortgage loans and up to 400% of our capital in loans secured by non-residential or commercial real estate. We also may invest in secured and unsecured consumer loans in an amount not exceeding 35% of total assets. This 35% limitation may be exceeded for certain types of consumer loans, such as home equity and property improvement loans secured by residential real property. In addition, we may invest up to 10% of our total assets in secured and unsecured loans for commercial, corporate, business, or agricultural purposes. At June 30, 2026, we were within each of the above lending limits.

One-to-Four Family Residential Real Estate Loans.  As of June 30, 2026, one-to-four family residential loans were $164.214 million, or 34.18%, of the total loan portfolio, before net items.

 

The loan-to-value ratios, maturities, and other provisions of the loans made by us generally have reflected the policy of making less than the maximum loan permissible under applicable regulations, in accordance with sound lending practices, market conditions, and underwriting standards established by us. Our current lending policy on one-to-four family residential loans generally limits the maximum loan-to-value ratio to 90% or less of the appraised value of the property, although we will lend up to a 100% loan-to-value ratio with private mortgage insurance. These loans are amortized on a monthly basis with principal and interest due each month, terms not in excess of 30 years, and generally include “due-on-sale” clauses.

 

At June 30, 2026, $108.894 million, or 66.31%, of our one-to-four family residential mortgage loans were fixed-rate loans. Fixed-rate loans generally have maturities ranging from 15 to 30 years and are fully amortizing with monthly loan payments sufficient to repay the total amount of the loan with interest by the end of the loan term. Our fixed-rate loans generally are originated under terms, conditions, and documentation which permit them to be sold to U.S. Government-sponsored agencies, such as the Federal Home Loan Mortgage Corporation and other investors in the secondary mortgage market. Consistent with our asset/liability management, we have sold a significant portion of our long-term, fixed rate loans.  Servicing is released on all loans sold.

Commercial Business Loans.  As of June 30, 2026, non-real estate secured commercial loans were $58.866 million, or 12.25%, of the total loan portfolio, before net items. The business lending products we offer include lines of credit, inventory financing, and equipment loans. Commercial business loans and lines of credit carry more credit risk than other types of commercial loans. We attempt to limit such risk by making loans predominantly to small- and mid-sized businesses located within our market area and having the loans personally guaranteed by the principals involved. We have established underwriting standards in regard to business loans which set forth the criteria for sources of repayment, borrower’s capacity to repay, specific financial and collateral margins, and financial enhancements such as guarantees. The primary source of repayment is cash flow from the business and the general financial strength of the borrower.

Land Loans.  As of June 30, 2026, land loans were $34.825 million, or 7.25%, of the total loan portfolio, before net items. Land loans include land which has been acquired for the purpose of development and unimproved land. Our loan policy provides for loan-to-value ratios of 50% for unimproved land loans. Land loans are originated with fixed rates and terms up to five years with longer amortizations. Although land loans generally are considered to have greater credit risk than certain other types of loans, we expect to mitigate such risk by requiring personal guarantees and identifying other secondary sources of repayment for the land loan other than the sale of the collateral. It is our practice to only originate a limited amount of loans for speculative development to borrowers with whom our lenders have a prior relationship.

Construction Loans.  As of June 30, 2026, construction loans were $25.435 million, or 5.29%, of the total loan portfolio, before net items. These included loans for the construction of residential and commercial property. Our residential construction loans typically have terms of six to twelve months with a takeout letter from Home Federal for the permanent mortgage. Our commercial construction loans include owner occupied commercial properties, pre-sold property, and speculative office property. As of June 30, 2026, we held $1.030 million of speculative construction loans.

Home Equity and Second Mortgage Loans.  As of June 30, 2026, home equity and second mortgage loans were $3.177 million, or 0.66%, of the total loan portfolio, before net items. These loans are secured by the underlying equity in the borrower’s residence. We do not require that we hold the first mortgage on the properties that secure the second mortgage loans. The amount of our second mortgage loans generally cannot exceed a loan-to-value ratio of 90% after taking into consideration the first mortgage loan. These loans are typically three-to-five year balloon loans with fixed rates and terms that will not exceed 10 years and contain an on-demand clause that allows us to call the loan in at any time.

 

Equity Lines of Credit.  As of June 30, 2026, lines of credit secured by a borrower’s equity in real estate were $21.657 million, or 4.51%, of the total loan portfolio, before net items. The unused portion of equity lines was $14.911 million at June 30, 2026.  The rates and terms of such lines of credit depend on the history and income of the borrower, purpose of the loan, and collateral. Lines of credit will not exceed 90% of the value of the equity in the collateral.

 

Real estate and other assets we acquire as a result of foreclosure or by deed-in-lieu of foreclosure are classified as real estate owned until sold.  At June 30, 2026, we had $613,000 in other real estate owned consisting of one commercial real estate property and two residential lots compared to $970,000 of other real estate owned at June 30, 2025 consisting of one single family residence.

Allowance for Credit Losses. At June 30, 2026, our allowance for credit losses amounted to $4.926 million. The Company has elected to exclude accrued interest receivable from the measurement of its allowance for credit losses. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income. The allowance for credit losses for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of nonperforming assets, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

While management believes that it determines the size of the allowance based on the best information available at the time, the allowance will need to be adjusted as circumstances change and assumptions are updated. Future adjustments to the allowance could significantly affect net income.

The following table shows changes in our allowance for credit losses during the periods presented. We had $256,000 and $323,000 of loan charge-offs during fiscal 2026 and 2025, respectively. Bad debt recoveries amounted to $104,000 and $359,000 during fiscal 2026 and 2025, respectively.

(1)	Does not include loans held for sale.

(2)	Includes loans held for sale.

The following table shows how our allowance for credit losses is allocated by type of loan at each of the dates indicated.

We have authority to invest in various types of securities, including mortgage-backed securities, U.S. Treasury obligations, securities of various federal agencies and of state and municipal governments, certificates of deposit at federally insured banks and savings institutions, certain bankers’ acceptances, and federal funds. Our investment strategy is established by the board of directors.

The following tables set forth the amortized cost of debt securities which contractually mature during each of the periods indicated and the weighted average yields for each range of maturities at June 30, 2026. Weighted average yields are calculated using the book yield of each debt security, weighted by the security’s amortized cost within the applicable security category and maturity range. Book yield reflects the amortization of premiums and accretion of discounts. Yields on tax-exempt debt securities have not been adjusted to a tax-equivalent basis.

Mortgage-backed securities represent a participation interest in a pool of one-to-four family or multi-family mortgages. The mortgage originators use intermediaries (generally U.S. Government agencies and government-sponsored enterprises) to pool and repackage the participation interests in the form of securities, with investors receiving the principal and interest payments on the mortgages. Such U.S. Government agencies and government-sponsored enterprises guarantee the payment of principal and interest to investors.

Mortgage-backed securities are typically issued with stated principal amounts, and the securities are backed by pools of mortgages that have loans with interest rates that are within a range and have varying maturities. The underlying pool of mortgages, i.e., fixed-rate or adjustable-rate, as well as prepayment risk, are passed on to the certificate holder. The life of a mortgage-backed pass-through security approximates the life of the underlying mortgages.

Our mortgage-backed securities consist of Ginnie Mae securities (“GNMA”), Freddie Mac securities (“FHLMC”), and Fannie Mae securities (“FNMA”). Ginnie Mae is a government agency within the Department of Housing and Urban Development, which is intended to help finance government-assisted housing programs. Ginnie Mae securities are backed by loans insured by the Federal Housing Administration or guaranteed by the Veterans Administration. The timely payment of principal and interest on Ginnie Mae securities is guaranteed by Ginnie Mae and backed by the full faith and credit of the U.S. Government. Freddie Mac is a private corporation chartered by the U.S. Government. Freddie Mac issues participation certificates backed principally by conventional mortgage loans. Freddie Mac guarantees the timely payment of interest and the ultimate return of principal on participation certificates. Fannie Mae is a private corporation chartered by the U.S. Congress with a mandate to establish a secondary market for mortgage loans. Fannie Mae guarantees the timely payment of principal and interest on Fannie Mae securities. Freddie Mac and Fannie Mae securities are not backed by the full faith and credit of the U.S. Government. In September 2008, the Federal Housing Finance Agency was appointed as conservator of Fannie Mae and Freddie Mac. The U.S. Department of the Treasury agreed to provide capital, as needed, to ensure that Fannie Mae and Freddie Mac continue to provide liquidity to the housing and mortgage markets.

Mortgage-backed securities generally yield less than the loans which underlie such securities because of their payment guarantees or credit enhancements, which offer nominal credit risk. In addition, mortgage-backed securities are more liquid than individual mortgage loans and may be used to collateralize our borrowings or other obligations.

Sources of Funds

General. Deposits are our primary source of funds for lending and other investment purposes. In addition to deposits, principal and interest payments on loans and investment securities are a source of funds. Loan repayments are a relatively stable source of funds, while deposit inflows and outflows are significantly influenced by general interest rates and money market conditions. Borrowings may also be used on a short-term basis to compensate for reductions in the availability of funds from other sources and on a longer-term basis for general business purposes.

Deposits. We attract deposits principally from residents of Louisiana and particularly from Caddo, Webster, and Bossier Parishes. Deposit account terms vary, with the principal differences being the minimum balance required, the time periods the funds must remain on deposit, and the interest rate. At June 30, 2026 and 2025, we had no balances in brokered deposits.

We establish interest rates paid, maturity terms, service fees, and withdrawal penalties on a periodic basis. Management determines the rates and terms based on rates paid by competitors, the need for funds or liquidity, growth goals, and federal regulations. We attempt to control the flow of deposits by pricing our accounts to remain generally competitive with other financial institutions in the market area.

The following table shows the portion of our certificates of deposit in excess of the FDIC insurance limit (generally, $250,000) at June 30, 2026 by time remaining to maturity.

Borrowings. We may obtain advances from the Federal Home Loan Bank of Dallas upon the security of the common stock we own in that bank and certain of our residential mortgage loans and mortgage-backed and other investment securities, provided certain standards related to creditworthiness have been met. These advances are made pursuant to several credit programs, each of which has its own interest rate and range of maturities. Federal Home Loan Bank advances are generally available to meet seasonal and other withdrawals of deposit accounts and to permit increased lending.

As of June 30, 2026, we were permitted to borrow up to an aggregate total of $136.376 million from the Federal Home Loan Bank of Dallas. We had no Federal Home Loan Bank advances outstanding at June 30, 2026 or June 30, 2025. Additionally, at June 30, 2026, Home Federal Bank was a party to a Master Purchase Agreement with First National Bankers Bank whereby Home Federal Bank may purchase Federal Funds from First National Bankers Bank in an amount not to exceed $19.9 million. There were no amounts purchased under this agreement as of June 30, 2026. At June 30, 2026, Home Federal Bancorp had a $3.556 million outstanding loan with First National Bankers Bank, which matures on February 5, 2034. The loan is secured by Home Federal Bank’s common stock and bears interest at the Prime Rate, which is subject to change when adjustments are made to Wall Street Journal Prime.

The following table shows certain information regarding our borrowings at or for the dates indicated:

At June 30, 2026, we had no outstanding advances from the Federal Home Loan Bank of Dallas.

Subsidiaries

At June 30, 2026, the Company had one subsidiary, Home Federal Bank. The Bank’s only subsidiary at such date was Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Employees

Home Federal Bank had 72 full-time employees and 4 part-time employees at June 30, 2026. None of these employees are covered by a collective bargaining agreement, and we believe that we enjoy good relations with our personnel.

REGULATION

Regulation of Home Federal Bancorp

Home Federal Bancorp, a Louisiana corporation, is a registered savings and loan holding company within the meaning of Section 10 of the Home Owners’ Loan Act and is subject to regulation, examination and supervision by the Federal Reserve Board, as well as certain reporting requirements. In addition, the Federal Reserve Board has enforcement authority over Home Federal Bancorp and its non-savings institution subsidiaries which also permits the Federal Reserve Board to restrict or prohibit activities that are determined to present a serious risk to Home Federal Bank.

Holding Company Activities. Home Federal Bancorp is a unitary savings and loan holding company under the Home Owners’ Loan Act, as amended. Federal law generally prohibits a savings and loan holding company, without prior approval of the Federal Reserve Board, from acquiring the ownership or control of any other savings institution or savings and loan holding company, or all, or substantially all, of the assets, or more than 5% of the voting shares of the savings institution or savings and loan holding company. These provisions also prohibit, among other things, any director or officer of a savings and loan holding company, or any individual who owns or controls more than 25% of the voting shares of such holding company, from acquiring control of any savings institution not a subsidiary of such savings and loan holding company, unless the acquisition is approved by the Federal Reserve Board.

The Federal Reserve Board may not approve any acquisition that would result in a multiple savings and loan holding company controlling a savings institutions in more than one state, subject to two exceptions: (i) the approval of interstate supervisory acquisitions by savings and loan holding companies and (ii) the acquisition of a savings institution in another state, if the laws of the state of the target savings institution specifically permit such acquisitions. The states vary in the extent to which they permit interstate savings and loan holding company acquisitions.

In evaluating applications by savings and loan holding companies to acquire savings institutions, the Federal Reserve Board must consider the financial and managerial resources and future prospects of the company and institution involved, the effect of the acquisition on the risk to the insurance funds, the convenience and needs of the community, competitive factors, and other factors. The Federal Reserve Board has long set forth in its regulations its “source of strength” policy, which requires bank holding companies to act as a source of strength to their subsidiary depository institutions by providing capital, liquidity and other support in times of financial stress. This policy now also applies to savings and loan holding companies.

The Federal Reserve Board has promulgated consolidated capital requirements for depository institution holding companies that are no less stringent, both quantitatively and in terms of components of capital, than those applicable to their subsidiary depository institutions, including a community bank leverage ratio alternative. However, holding companies with less than $3.0 billion of consolidated assets, such as Home Federal Bancorp, are generally not subject to consolidated capital requirements unless otherwise advised by the FRB.

The Federal Reserve Board has issued a policy statement regarding the payment of dividends and the repurchase of shares of common stock by bank holding companies that is applicable to savings and loan holding companies as well. In general, the policy provides that dividends should be paid only out of current earnings and only if the prospective rate of earnings retention by the holding company appears consistent with the organization’s capital needs, asset quality and overall financial condition. Regulatory guidance provides for prior regulatory consultation with respect to capital distributions in certain circumstances such as where the company’s net income for the past four quarters, net of dividends previously paid over that period, is insufficient to fully fund the dividend or the company’s overall rate of earnings retention is inconsistent with the company’s capital needs and overall financial condition. The ability of a holding company to pay dividends may be restricted if a subsidiary bank becomes undercapitalized. The policy statement also provides for regulatory consultation prior to a holding company redeeming or repurchasing regulatory capital instruments when the holding company is experiencing financial weaknesses or redeeming or repurchasing common stock or perpetual preferred stock that would result in a net reduction as of the end of a quarter in the amount of such equity instruments outstanding compared with the beginning of the quarter in which the redemption or repurchase occurred. These regulatory policies could affect the ability of Home Federal Bancorp to pay dividends, repurchase shares of common stock or otherwise engage in capital distributions.

All savings institution subsidiaries of savings and loan holding companies like Home Federal Bank are required to meet a qualified thrift lender, or QTL, test to avoid certain restrictions on their operations. If the subsidiary savings institution fails to meet the QTL, as discussed below, then the savings and loan holding company must register with the Federal Reserve Board as a bank holding company, unless the savings institution requalifies as a QTL within one year thereafter.

Federal Securities Laws. Home Federal Bancorp registered its common stock with the Securities and Exchange Commission under Section 12(b) of the Securities Exchange Act of 1934. Home Federal Bancorp is subject to the proxy and tender offer rules, insider trading reporting requirements and restrictions, and certain other requirements under the Securities Exchange Act of 1934.

Regulation of Home Federal Bank

Insurance of Accounts. The deposits of Home Federal Bank are insured up to $250,000 per separately insured deposit ownership right or category by the Deposit Insurance Fund of the Federal Deposit Insurance Corporation (“FDIC”) and are backed by the full faith and credit of the U.S. Government. The FDIC has examination, reporting and enforcement authority over insured institutions and assesses deposit insurance premiums based on risk. For insured institutions with less than $10 billion in total assets, assessments are generally based on financial measures and supervisory ratings, including measures derived from statistical modeling. The FDIC may increase assessment rates, and a significant increase in deposit insurance premiums could adversely affect the Bank’s operating expenses and results of operations.

The Federal Deposit Insurance Corporation may terminate the deposit insurance of any insured depository institution, including Home Federal Bank, if it determines after a hearing that the institution has engaged or is engaging in unsafe or unsound practices, is in an unsafe or unsound condition to continue operations, or has violated any applicable law, regulation, order, or any condition imposed by an agreement with the Federal Deposit Insurance Corporation. It also may suspend deposit insurance temporarily during the hearing process for the permanent termination of insurance, if the institution has no tangible capital. If insurance of accounts is terminated, the accounts at the institution at the time of the termination, less subsequent withdrawals, shall continue to be insured for a period of six months to two years, as determined by the Federal Deposit Insurance Corporation. Management is aware of no existing circumstances which would result in termination of Home Federal Bank’s deposit insurance.

Regulatory Capital Regulations. Federally insured savings institutions are subject to minimum regulatory capital requirements established by the OCC.  Qualifying community banking organizations with less than $10 billion in total consolidated assets such as Home Federal Bank may elect to use the Community Bank Leverage Ratio (“CBLR”) framework in lieu of the generally applicable risk-based capital framework. Under the CBLR framework, a qualifying institution that elects the framework is required to maintain a Tier 1 leverage ratio greater than 8%, effective July 1, 2026. An institution that satisfies the applicable CBLR requirements is not required to calculate or report the generally applicable risk-based capital ratios and is considered to have met the capital requirements for the “well-capitalized” category under the prompt corrective action framework.

A qualifying community banking organization such as Home Federal Bank may elect to use or discontinue use of the CBLR framework through its quarterly Call Report. Home Federal Bank intends to opt in to the CBLR framework in its quarterly Call Report for the quarter ending September 30, 2026. An institution that elects the CBLR framework but subsequently fails to satisfy one or more of the qualifying criteria generally may continue to use the framework during a four-quarter grace period, subject to applicable requirements, including maintaining a leverage ratio greater than 7%. An institution that does not satisfy the applicable CBLR requirements following the grace period, or that otherwise ceases to qualify for the framework, must comply with the generally applicable regulatory capital requirements.

The CBLR framework provides a simplified alternative to the generally applicable risk-based capital framework. A qualifying community banking organization that elects to use the CBLR framework and satisfies its applicable requirements is not required to calculate or report the generally applicable risk-based capital ratios and is considered to have met the capital ratio requirements for the “well-capitalized” category under the prompt corrective action framework. Accordingly, the Bank’s compliance with the CBLR framework, rather than the generally applicable risk-based capital ratios and capital conservation buffer, is the primary measure of the Bank’s regulatory capital adequacy.

Prompt Corrective Action

Federal banking law establishes five capital categories for insured depository institutions under the prompt corrective action framework: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized and critically undercapitalized. An institution that elects to use the CBLR framework and satisfies the applicable CBLR requirements is considered to have met the capital ratio requirements for the “well-capitalized” category under the prompt corrective action framework.

At June 30, 2026, Home Federal Bank was deemed a well-capitalized institution for purposes of the prompt corrective action regulations applicable as of such date. As a result, the Bank was not subject to the restrictions applicable to institutions in the lower capital categories. See Note 16 to the Notes to Consolidated Financial Statements contained in Item 8 of this Form 10-K.

Capital Distributions. There are various restrictions on a bank’s ability to make capital distributions, including cash dividends, payments to repurchase or otherwise acquire its shares and other distributions charged against capital. A savings institution that is the subsidiary of a savings and loan holding company, such as Home Federal Bank, must file a notice with the FRB at least 30 days before making a capital distribution and receive the FRB’s nonobjection. Home Federal Bank must also file an application or notice for prior approval with the Office of the Comptroller of the Currency if the total amount of its capital distributions (including each proposed distribution), for the applicable calendar year would exceed Home Federal Bank’s net income for that year plus its retained net income for the previous two years, if Home Federal Bank is not an “eligible savings association” as defined in Office of the Comptroller of the Currency regulations or the capital distributions would violate a prohibition contained in any statute, regulation or agreement.

Qualified Thrift Lender Test. Like all savings institutions, federal regulations require that Home Federal Bank comply with a Qualified Thrift Lender test to avoid certain restrictions on its operations. Under this test, Home Federal Bank is required to maintain at least 65% of its “portfolio assets” in certain “qualified thrift investments” on a monthly basis in at least nine months of the most recent twelve-month period. “Portfolio assets” means, in general, an institution’s total assets less the sum of (a) specified liquid assets up to 20% of total assets, (b) goodwill and other intangible assets and (c) the value of property used to conduct the institution’s business. “Qualified thrift investments” include various types of loans made for residential and housing purposes, investments related to such purposes, including certain mortgage-backed and related securities and consumer loans. If Home Federal Bank fails the QTL test, it must operate under certain restrictions on its activities and may be required to convert to a national bank. At June 30, 2026, Home Federal Bank believes it meets the QTL test.

Community Reinvestment Act. Home Federal Bank is subject to the provisions of the Community Reinvestment Act of 1977 (“CRA”), which require the appropriate federal bank regulatory agency to assess a bank’s performance under the CRA in meeting the credit needs of the community serviced by Home Federal Bank, including low and moderate income neighborhoods. The regulatory agency’s assessment of Home Federal Bank’s record is made available to the public. Further, a bank’s CRA performance must be considered in connection with a bank’s application to, among other things, establish a new branch office that will accept deposits, relocate an existing office or merge or consolidate with, or acquire the assets or assume the liabilities of, a federally regulated financial institution. An unsatisfactory rating may be the basis for denial of certain applications. Home Federal Bank received a “satisfactory” rating during its most recent CRA examination.

On October 24, 2023, the Office of the Comptroller of the Currency and the other federal banking agencies issued a final rule to strengthen and modernize the CRA regulations. The 2023 CRA final rule, however, did not take effect due to pending litigation. On July 16, 2025, the banking regulators including the OCC issued a joint notice of proposed rulemaking to rescind the 2023 CRA final rule and replace it with the 1995/2021 regulation. The OCC continues to assess a bank’s CRA performance under the OCC’s 1995/2021 CRA regulation and is not applying any provisions of the 2023 Final Rule

Limitations on Transactions with Affiliates. Home Federal Bank’s authority to engage in transactions with its “affiliates” is limited by federal regulations and by Sections 23A and 23B of the Federal Reserve Act. In general, these transactions must be on terms which are as favorable to Home Federal Bank as comparable transactions with non-affiliates. Additionally, certain types of these transactions are restricted to an aggregate percentage of Home Federal Bank’s capital. Collateral in specified amounts must usually be provided by affiliates to receive loans from Home Federal Bank. In addition, Office of Comptroller of the Currency regulations prohibit a savings bank from lending to any affiliate that is engaged in activities that are not permissible for bank holding companies and from purchasing the securities of any affiliate other than a subsidiary.

Home Federal Bank’s authority to extend credit to its directors, executive officers, and 10% shareholders (“insiders”), as well as to entities controlled by such persons, is currently governed by the requirements of Sections 22(g) and 22(h) of the Federal Reserve Act and Regulation O of the Federal Reserve Board. Among other things, these provisions require that all loans or extensions of credit to insiders (a) be made on terms that are substantially the same as and follow credit underwriting procedures that are not less stringent than those prevailing for comparable transactions with unaffiliated persons and that do not involve more than the normal risk of repayment or present other unfavorable features and (b) not exceed certain limitations, individually and in the aggregate, which limits are based, in part, on the amount of the Home Federal Bank’s capital. In addition, extensions of credit in excess of certain limits must be approved by the Home Federal Bank’s Board. At June 30, 2026, Home Federal was in compliance with the above restrictions.

Incentive Compensation. Federal banking agencies have issued guidance addressing incentive compensation arrangements to promote safety and soundness and discourage excessive risk-taking. The guidance emphasizes that incentive compensation should be appropriately balanced with risk management, internal controls and effective corporate governance. Banking organizations may be subject to supervisory or enforcement actions if their compensation practices create undue risks to safety and soundness.

The proposed rule would prohibit incentive-based compensation arrangements that encourage inappropriate risks by a covered institution (1) by providing an executive officer, employee, director, or principal shareholder of the covered institution with excessive compensation, fees, or benefits; or (2) that could lead to material financial loss to the covered financial institution. The proposed rule has not yet been finalized. No assurance can be given as to whether or when this proposal will be adopted in final form or its impact on Home Federal Bank.

Regulation of Residential Mortgage Loan Originators. Under the final rule adopted by the federal bank regulatory authorities pursuant to the Secure and Fair Enforcement for Mortgage Licensing Act of 2008, residential mortgage loan originators employed by financial institutions, such as Home Federal Bank, must register with the Nationwide Mortgage Licensing System and Registry, obtain a unique identifier from the registry, and maintain their registration. Any residential mortgage loan originator who fails to satisfy these requirements will not be permitted to originate residential mortgage loans.

Anti-Money Laundering. All financial institutions, including savings associations, are subject to federal laws that are designed to prevent the use of the U.S. financial system to fund terrorist activities. Financial institutions operating in the United States must develop anti-money laundering compliance programs, due diligence policies, and controls to ensure the detection and reporting of money laundering. Such compliance programs are intended to supplement compliance requirements, also applicable to financial institutions, under the Bank Secrecy Act and the Office of Foreign Assets Control Regulations. Home Federal Bank has established policies and procedures to ensure compliance with these provisions.

Volcker Rule Regulations. The federal banking agencies have adopted regulations implementing the Volcker Rule, which generally restricts proprietary trading and certain investments in, and relationships with, hedge funds and private equity funds. However, federal regulations exclude from the Volcker Rule restrictions community banks with $10 billion or less in total consolidated assets and total trading assets and liabilities of five percent or less of total consolidated assets. Home Federal Bank qualifies for the exclusion from the Volcker Rule restrictions.

Privacy Standards and Cybersecurity. The Gramm-Leach-Bliley Financial Services Modernization Act of 1999 modernized the financial services industry by establishing a comprehensive framework to permit affiliations among commercial banks, insurance companies, securities firms and other financial service providers. Federal banking agencies, including the FDIC, have adopted guidelines for establishing information security standards and cybersecurity programs for implementing safeguards under the supervision of the board of directors. These guidelines, along with related regulatory materials, increasingly focus on risk management and processes related to information technology and the use of third parties in the provision of financial services. These regulations require Home Federal Bank to disclose its privacy policy, including informing consumers of its information sharing practices and informing consumers of their rights to opt out of certain practices. In addition, Louisiana State and other federal and state cybersecurity and data privacy laws and regulations may expose Home Federal Bank to risk and result in certain risk management costs. In addition, on November 18, 2021, the federal banking agencies announced the adoption of a final rule providing for new notification requirements for banking organizations and their service providers for significant cybersecurity incidents. Specifically, the new rule requires a banking organization to notify its primary federal regulator as soon as possible, and no later than 36 hours after, the banking organization determines that a “computer-security incident” rising to the level of a “notification incident” has occurred. Notification is required for incidents that have materially affected or are reasonably likely to materially affect the viability of a banking organization’s operations, its ability to deliver banking products and services, or the stability of the financial sector. Service providers are required under the rule to notify affected banking organization customers as soon as possible when the provider determines that it has experienced a computer-security incident that has materially affected or is reasonably likely to materially affect the banking organization’s customers for four or more hours. Compliance with the new rule was required by May 1, 2022. Non-compliance with federal or similar state privacy and cybersecurity laws and regulations could lead to substantial regulatory imposed fines and penalties, damages from private causes of action and/or reputational harm.

Federal Home Loan Bank System. Home Federal Bank is a member of the Federal Home Loan Bank of Dallas, which is one of 11 regional Federal Home Loan Banks that administer a home financing credit function primarily for its members. Each Federal Home Loan Bank serves as a reserve or central bank for its members within its assigned region. The Federal Home Loan Bank of Dallas is funded primarily from proceeds derived from the sale of consolidated obligations of the Federal Home Loan Bank System. It makes loans to members (i.e., advances) in accordance with policies and procedures established by the board of directors of the Federal Home Loan Bank. At June 30, 2026, Home Federal Bank had no advances from the Federal Home Loan Bank and $136.376 million available on its credit line with the Federal Home Loan Bank.

As a member, Home Federal Bank is required to purchase and maintain stock in the Federal Home Loan Bank of Dallas. At June 30, 2026, Home Federal Bank had $705,000 in Federal Home Loan Bank stock, which was in compliance with the applicable requirement.

The Federal Home Loan Banks are required to provide funds for the resolution of troubled savings institutions and to contribute to affordable housing programs through direct loans or interest subsidies on advances targeted for community investment and low- and moderate-income housing projects. These contributions have adversely affected the level of Federal Home Loan Bank dividends paid in the past and could do so in the future. These contributions also could have an adverse effect on the value of Federal Home Loan Bank stock in the future.

Federal Reserve System. The Federal Reserve Board requires all depository institutions to maintain reserves against their transaction accounts (primarily NOW and Super NOW checking accounts) and non-personal time deposits. In response to the COVID-19 pandemic, the Federal Reserve reduced reserve requirement ratios to zero percent effective May 26, 2020 to support lending to households and businesses. The required reserves must be maintained in the form of vault cash or an account at a Federal Reserve Bank. As of June 30, 2026, the reserve ratio requirement remained at zero percent and Home Federal Bank was not required to maintain any reserve balance.

TAXATION

Federal Taxation

General. Home Federal Bancorp and Home Federal Bank are subject to federal income taxation in the same general manner as other corporations with some exceptions listed below. The following discussion of federal and state income taxation is only intended to summarize certain pertinent income tax matters and is not a comprehensive description of the applicable tax rules. Our tax returns have not been audited during the past five years.

Method of Accounting. For federal income tax purposes, Home Federal Bank reports income and expenses on the accrual method of accounting and used a June 30 tax year in 2026 for filing its federal income tax return.

Taxable Distributions and Recapture. Prior to the Small Business Job Protection Act of 1996, bad debt reserves created prior to January 1, 1988 were subject to recapture into taxable income if Home Federal Bank failed to meet certain thrift asset and definitional tests. The federal legislation eliminated these savings association related recapture rules. However, under current law, pre-1988 reserves remain subject to recapture should Home Federal Bank make certain non-dividend distributions or cease to maintain a bank charter.

At June 30, 2026, the total federal pre-1988 reserve was approximately $3.3 million. The reserve reflects the cumulative effects of federal tax deductions by Home Federal Bank for which no federal income tax provisions have been made.

Corporate Dividends-Received Deduction. Home Federal Bancorp may exclude from its income 100% of dividends received from Home Federal Bank as a member of the same affiliated group of corporations. The corporate dividends received deduction is 65% in the case of dividends received from corporations which a corporate recipient owns less than 80% but at least 20% of the distribution corporation. Corporations which own less than 20% of the stock of a corporation distributing a dividend may deduct only 50 % of dividends received.

State and Local Taxation

Home Federal Bancorp is subject to Louisiana corporation income tax based on its Louisiana taxable income. For taxable periods beginning on or after January 1, 2025, including our fiscal year ended June 30, 2026, Louisiana corporation income tax is imposed at a flat rate of 5.5%. For these purposes, “Louisiana taxable income” generally means net income derived from sources within the State of Louisiana, subject to the adjustments and deductions permitted under Louisiana law. In addition, Home Federal Bank is subject to the Louisiana Shares Tax which is imposed on the assessed value of a company’s retained earnings and capital stock accounts. The formula for deriving the assessed value is to calculate 15% of the sum of:

(a) 20% of Home Federal Bank’s capitalized earnings, plus

(b) 80% of Home Federal Bank’s taxable stockholders’ equity, minus

(c) 100% of Home Federal Bank’s real and personal property assessment. (1)

(1) For the 2025 property tax year, the deduction was 50% of the assessed value of such property. Effective January 1, 2026, the deduction increased to 100% for the 2026 property tax year and subsequent property tax years.

Various items may also be subtracted in calculating a company’s capitalized earnings.

Not applicable.

Not applicable.

We currently conduct business from our home office located in Shreveport, Louisiana and six full-service banking offices located in Shreveport, Louisiana, two full-service banking offices located in Bossier City, Louisiana, one full-service banking office located in Minden, Louisiana and one full-service banking office located in Benton, Louisiana. The following table sets forth certain information, as of June 30, 2026, relating to Home Federal Bank’s offices, and one property acquired for potential future administrative offices which is presently vacant.

Home Federal Bancorp and Home Federal Bank are not involved in any pending legal proceedings other than nonmaterial legal proceedings occurring in the ordinary course of business.

Not applicable.

PART II

---

General

Our profitability depends primarily on our net interest income, which is the difference between interest and dividend income on interest-earning assets, principally loans, investment securities, and interest-earning deposits in other institutions, and interest expense on interest-bearing deposits and borrowings from the Federal Home Loan Bank of Dallas. Net interest income is dependent upon the level of interest rates and the extent to which such rates are changing. Our profitability also depends, to a lesser extent, on non-interest income, provision for loan losses, non-interest expenses, and federal income taxes. Home Federal Bancorp, Inc. of Louisiana had net income of $6.174 million in fiscal 2026 compared to net income of $3.888 million in fiscal 2025.

Our business consists primarily of originating single-family real estate loans secured by property in our market area and to a lesser extent, commercial real estate loans, commercial business loans, and real estate secured lines of credit which typically have higher rates and shorter terms than single-family loans. Although our loans are primarily funded by the acquisition of deposits and it is our policy to require commercial customers to have a deposit relationship with us, which primarily consists of NOW accounts or non-interest checking accounts. Due to the continued low interest rate environment, we have sold a substantial amount of our fixed rate single-family residential loan originations in recent periods. Because of an increase in the weighted-average yield on our interest-earning assets, together with a decrease in our rate on total interest bearing liabilities, our average interest rate spread increased from 2.55% to 3.07% during fiscal 2026 compared to 2025, and our net interest income increased $3.118 million to $21.789 million for fiscal 2026 as compared to $18.671 million for fiscal 2025, primarily due to a $9.218 million increase in average balance of interest earning assets. We expect to continue to emphasize commercial lending in the future in order to improve the yield on our portfolio.

Home Federal Bancorp’s operations and profitability are subject to changes in interest rates, applicable statutes and regulations, and general economic conditions, as well as other factors beyond our control.

Business Strategy

Our business strategy is focused on operating a growing and profitable community-oriented financial institution. Our current business strategy includes:

•

Continuing to Grow and Diversify Our Loan Portfolio. We intend to grow and continue to diversify our loan portfolio by, among other things, emphasizing the origination of commercial real estate and business loans.  At June 30, 2026, our commercial real estate loans amounted to $141.002 million, or 29.3% of the total loan portfolio.  Our commercial business loans amounted to $58.866 million, or 12.3% of the total loan portfolio. Commercial real estate, commercial business, construction and development, and consumer loans all typically have higher yields and are more interest sensitive than long-term single-family residential mortgage loans.

Critical Accounting Policies

In reviewing and understanding financial information for Home Federal Bancorp, you are encouraged to read and understand the significant accounting policies used in preparing our consolidated financial statements. These policies are described in Note 1 of the notes to our consolidated financial statements included in Item 8 of this document. Our accounting and financial reporting policies conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. The following accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results. These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

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

		At June 30,
		2026				2025
		(In thousands)
Selected Financial and Other Data:
Total assets		$	643,330			$	609,492
Cash and cash equivalents			34,304				17,347
Securities available for sale			43,624				34,246
Securities held to maturity			55,439				61,334
Loans held-for-sale			1,654				1,540
Loans receivable, net			475,491				461,004
Deposits			577,292				546,290
Other Borrowings			3,556				4,000
Total Stockholders’ equity			58,757				55,205

		As of or for the Year Ended June 30,
		2026				2025
Selected Operating Ratios(1):
Average yield on interest-earning assets			5.54	%			5.28	%
Average rate on interest-bearing liabilities			2.47				2.73
Average interest rate spread(2)			3.07				2.55
Net interest margin(2)			3.72				3.23
Average interest-earning assets to average interest-bearing liabilities			135.13				133.86
Net interest income after provision for loan losses to non-interest expense			131.80				116.40
Total non-interest expense to average assets			2.57				2.62
Efficiency ratio(3)			65.74				78.11
Return on average assets			0.99				0.63
Return on average equity			10.70				7.31
Average equity to average assets			9.23				8.62
Dividend payout ratio(4)			26.94				41.90

Selected Financial and Other Data (Continued)		As of or for the Year Ended June 30,
		2026				2025
Selected Quality Ratios(5):
Non-performing loans as a percent of loans receivable, net			0.64	%			0.51	%
Non-performing assets as a percent of total assets			0.57				0.54
Allowance for credit losses as a percent of total loans receivable			1.03				0.96
Net charge-offs to average loans receivable			0.03				(0.01	)
Allowance for credit losses as a percent of non-performing loans			162.25				191.99
Bank Capital Ratios(5):
Common Equity Tier 1			13.11	%			13.59	%
Tier 1 Capital			13.11				13.59
Total Capital			14.20				14.67
Leverage			9.29				9.40
Tangible Capital			9.29				9.40
Other Data:
Offices (branch and home)			11				11
Employees (full-time)			74				67

		June 30,
		2026												2025
		Average Balance				Interest				Average Yield/ Rate				Average Balance				Interest				Average Yield/ Rate
		(Dollars in thousands)
Interest-earning assets:
Loans receivable(1)		$	472,273			$	29,510				6.25	%		$	460,356			$	27,346				5.94	%
Investment securities			97,900				2,322				2.37				96,178				2,266				2.36
Interest-earning deposits			16,226				666				4.10				20,647				850				4.12
Total interest-earning assets			586,399				32,498				5.54	%			577,181				30,462				5.28	%
Non-interest-earning assets			38,823												40,105
Total assets		$	625,222											$	617,286
Interest-bearing liabilities:
Savings accounts			92,442				1,422				1.54	%			90,458				1,544				1.71	%
NOW accounts			64,807				734				1.13				70,375				821				1.17
Money market accounts			69,522				1,370				1.97				76,494				1,656				2.16
Certificates of deposit accounts			202,987				6,898				3.40				189,204				7,420				3.92
Total interest-bearing deposits			429,758				10,424				2.43				426,531				11,441				2.68
FHLB advances			350				13				3.71				14				-				4.65
Other bank borrowings			3,852				272				7.06				4,650				350				7.53
Total interest-bearing liabilities			433,960				10,709				2.47	%			431,195				11,791				2.73	%
Non-interest-bearing liabilities:
Non-interest-bearing demand accounts			129,344												128,336
Other liabilities			4,218												4,538
Total liabilities			567,522												564,069
Total stockholders’ equity(2)			57,700												53,217
Total liabilities and equity		$	625,222											$	617,286
Net interest-earning assets		$	152,439											$	145,986
Net interest income; average interest rate spread(3)						$	21,789				3.07	%						$	18,671				2.55	%
Net interest margin(4)											3.72	%											3.23	%
Average interest-earning assets to average interest-bearing liabilities											135.13	%											133.86	%

(1)	Includes loans held for sale.

(2)	Includes retained earnings and accumulated other comprehensive loss.

(4)	Net interest margin is net interest income divided by net average interest-earning assets.

		2026 vs. 2025												2025 vs. 2024
		Increase (Decrease) Due to								Total Increase				Increase (Decrease) Due to								Total Increase
		Rate				Volume				(Decrease)				Rate				Volume				(Decrease)
		(In thousands)
Interest income:
Investment securities		$	15			$	41			$	56			$	30			$	(241	)		$	(211	)
Loans receivable, net			1,456				708				2,164				590				(2,260	)			(1,670	)
Interest-earning deposits			(2	)			(182	)			(184	)			(46	)			525				479
Total interest-earning assets			1,469				567				2,036				574				(1,976	)			(1,402	)
Interest expense:
Savings accounts			(156	)			34				(122	)			960				105				1,065
NOW accounts			(22	)			(65	)			(87	)			449				17				466
Money market accounts			(135	)			(151	)			(286	)			(229	)			(411	)			(640	)
Certificate accounts			(1,063	)			541				(522	)			(433	)			(1,015	)			(1,448	)
Total deposits			(1,376	)			359				(1,017	)			747				(1,304	)			(557	)
FHLB advances and other borrowings			(5	)			(60	)			(65	)			(44	)			(521	)			(565	)
Total interest-bearing liabilities			(1,381	)			299				(1,082	)			703				(1,825	)			(1,122	)
Increase (Decrease) in net interest income		$	2,850			$	268			$	3,118			$	(129	)		$	(151	)		$	(280	)

Change in Interest Rates in			Net Portfolio Value												NPV as % of Portfolio Value of Assets
Basis Points (Rate Shock)			Amount				$ Change				% Change				NPV Ratio				Change
			(Dollars in thousands)
300			$	88,339			$	(2,094	)			(2.32	)%			15.40	%			0.62	%
200				90,341				(92	)			(0.10	)			15.40				0.62
100				91,378				945				1.04				15.25				0.47
Static				90,433				-				-				14.78				-
(100)				89,848				(585	)			(0.65	)			14.38				(0.39	)
(200)				89,090				(1,343	)			(1.49	)			13.97				(0.81	)

		June 30,
		2026				2025
Assets
Cash and cash equivalents (includes interest-bearing deposits with other banks of $28,135 and $10,380 at June 30, 2026 and June 30, 2025, respectively)		$	34,304			$	17,347
Securities available-for-sale (amortized cost June 30, 2026: $45,980; June 30, 2025: $36,695, respectively)			43,624				34,246
Securities held-to-maturity (fair value June 30, 2026: $46,658; June 30, 2025: $51,139, respectively)			55,439				61,334
Other securities			954				650
Loans held-for-sale			1,654				1,540
Loans receivable, net of allowance for credit losses (June 30, 2026: $4,926; June 30, 2025: $4,484, respectively)			475,491				461,004
Accrued interest receivable			1,895				1,836
Premises and equipment, net			16,173				17,266
Bank owned life insurance			7,040				6,926
Goodwill			2,990				2,990
Core deposit intangible			675				915
Deferred tax asset			1,058				1,163
Other real estate owned			613				970
Other assets			1,420				1,305
Total assets		$	643,330			$	609,492
Liabilities
Deposits:
Non-interest bearing			138,059				122,416
Interest bearing			439,233				423,874
Total deposits			577,292				546,290
Advances from borrowers for taxes and insurance			511				543
Other borrowings			3,556				4,000
Other accrued expenses and liabilities			3,214				3,454
Total liabilities			584,573				554,287
Stockholders’ equity
Preferred stock - $0.01 par value; 10,000,000 shares authorized: none issued and outstanding			-				-
Common stock - $0.01 par value; 40,000,000 shares authorized: 3,042,451 and 3,084,764 shares issued and outstanding at June 30, 2026 and June 30, 2025, respectively			30				32
Additional paid-in capital			44,429				42,187
Unearned ESOP stock			(263	)			(321	)
Retained earnings			16,423				15,241
Accumulated other comprehensive loss			(1,862	)			(1,934	)
Total stockholders’ equity			58,757				55,205
Total liabilities and stockholders’ equity		$	643,330			$	609,492

		Years ended June 30,
		2026				2025
Interest income
Loans, including fees		$	29,510			$	27,346
Investment securities			56				325
Mortgage-backed securities			2,266				1,941
Other interest-earning assets			666				850
Total interest income			32,498				30,462
Interest expense
Deposits			10,424				11,441
Federal Home Loan Bank borrowings			13				-
Other bank borrowings			272				350
Total interest expense			10,709				11,791
Net interest income			21,789				18,671
Provision for (recovery of) credit losses			594				(126	)
Net interest income after provision for credit losses			21,195				18,797
Non-interest income
Loss on sale of real estate			(18	)			(265	)
Gain on sale of loans			642				384
Loss on sale of securities			-				(6	)
Income on bank owned life insurance			114				116
Service charges on deposit accounts			1,712				1,568
Other income			222				208
Total non-interest income			2,672				2,005
Non-interest expense
Compensation and benefits			8,851				8,940
Occupancy and equipment			2,384				2,354
Data processing			1,350				1,439
Audit and examination fees			411				597
Franchise and bank shares tax			429				439
Advertising			123				145
Professional fees			477				495
Loan and collection			158				134
Amortization of core deposit intangible			240				284
Deposit insurance premium			380				347
Other real estate owned write-down expense			200				-
Other expenses			1,079				974
Total non-interest expense			16,082				16,148
Income before income taxes			7,785				4,654
Provision for income tax expense			1,611				766
Net income		$	6,174			$	3,888
Earnings per share
Basic		$	2.05			$	1.27
Diluted		$	2.02			$	1.26

		Years ended June 30,
		2026				2025
Net income		$	6,174			$	3,888
Other comprehensive gain (loss), net of tax
Unrealized gains on securities available-for-sale:
Unrealized holding gains arising during the period			93				856
Less: reclassification adjustments for securities gains (losses) realized in net income			-				(6	)
Income tax effect			(21	)			(181	)
Total other comprehensive gain, net of tax			72				681
Total comprehensive income		$	6,246			$	4,569

		Common Stock				Additional Paid-in Capital				Unearned ESOP Shares				Retained Earnings				Accumulated Other Comprehensive Income				Total
Balance at June 30, 2024		$	32			$	41,739			$	(408	)		$	14,055			$	(2,615	)		$	52,803
Net income			-				-				-				3,888				-				3,888
ESOP compensation earned			-				131				87				-				-				218
Stock options exercised			-				111				-				-				-				111
Dividends paid			-				-				-				(1,629	)			-				(1,629	)
Stock options vested			-				94				-				-				-				94
Company stock purchased			-				-				-				(1,073	)			-				(1,073	)
Other comprehensive income, unrealized gain on debt securities, net of tax			-				-				-				-				681				681
Share awards earned			-				112				-				-				-				112
Balance at June 30, 2025		$	32			$	42,187			$	(321	)		$	15,241			$	(1,934	)		$	55,205
Net income			-				-				-				6,174				-				6,174
ESOP compensation earned			-				136				58				-				-				194
Stock options exercised			2				1,836				-				-				-				1,838
Dividends paid			-				-				-				(1,663	)			-				(1,663	)
Stock options vested			-				114				-				-				-				114
Company stock purchased			(4	)			-				-				(3,329	)			-				(3,333	)
Other comprehensive income, unrealized gain on debt securities, net of tax			-				-				-				-				72				72
Share awards earned			-				156				-				-				-				156
Balance at June 30, 2026		$	30			$	44,429			$	(263	)		$	16,423			$	(1,862	)		$	58,757

		Years ended June 30,
		2026				2025
Cash flows from operating activities
Net income		$	6,174			$	3,888
Adjustments to reconcile net income to net
Cash provided by operating activities
Gain on sale of loans			(642	)			(384	)
Loss on sale of investments			-				6
Net amortization and accretion on securities			(378	)			(189	)
Amortization of deferred loan fees			(78	)			(71	)
Amortization of purchased loans			(178	)			(263	)
Provision for (recovery of) credit losses			594				(126	)
Depreciation of premises and equipment			1,122				1,083
Loss on sale of real estate			18				265
ESOP compensation expense			194				218
Stock option expense			114				94
Deferred income tax expense (benefit)			84				(163	)
Share awards expense			156				112
Increase in cash surrender value on bank owned life insurance			(114	)			(116	)
Amortization of core deposit intangible			240				284
Write-down of other real estate owned			200				-
Changes in assets and liabilities:
Loans held-for-sale – originations and purchases			(30,160	)			(18,119	)
Loans held-for-sale – sale and principal repayments			30,688				18,696
Accrued interest receivable			(59	)			(61	)
Other operating assets			(115	)			45
Other operating liabilities			(240	)			273
Net cash from operating activities			7,620				5,472
Cash flows from investing activities
Loan originations and purchases, net			(15,813	)			9,268
Deferred loan fees collected			55				78
Acquisition of premises and equipment			(29	)			(46	)
Proceeds from sale of real estate			1,106				262
Improvements to real estate owned prior to disposition			(34	)			(117	)
Changes in FHLB stock			(304	)			964
Activity in available-for-sale securities:
Maturities, prepayments and calls			6,292				5,900
Purchases			(15,169	)			(12,695	)
Sales			-				651
Activity in held-to-maturity securities:
Maturities, prepayments and calls			5,865				5,948
Net cash from investing activities			(18,031	)			10,213

		Years ended June 30,
		2026				2025
Cash flows from financing activities
Net increase (decrease) in deposits		$	31,002			$	(27,717	)
Proceeds from advances from federal home loan bank			2,000				-
Repayments of advances from federal home loan bank			(2,000	)			-
Dividends paid			(1,663	)			(1,629	)
Company stock purchased			(3,333	)			(1,073	)
Net (decrease) increase in advances from borrowers for taxes and insurance			(32	)			22
Repayments of other bank borrowings			(444	)			(3,000	)
Proceeds from stock options exercised			1,838				111
Net cash from financing activities			27,368				(33,286	)
Net increase (decrease) in cash and cash equivalents			16,957				(17,601	)
Cash and cash equivalents - beginning of period		$	17,347			$	34,948
Cash and cash equivalents - end of period		$	34,304			$	17,347
Supplemental cash flow information
Interest paid on deposits and borrowed funds		$	10,685			$	11,752
Income taxes paid			1,650				685
Market value adjustment for gain on securities available-for-sale			93				862
Transfer from loans to other real estate owned			934				961

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Notes to Consolidated Financial Statements

Note 1. Summary of Significant Accounting Policies

Nature of Operations

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana, a Louisiana chartered corporation (the “Company” or “Home Federal Bancorp”) and its wholly owned subsidiary, Home Federal Bank, a federally chartered stock savings bank (the “Bank”), along with its wholly owned subsidiary, Metro Financial Services, Inc.

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 savings, certificates of deposit, and demand deposit accounts. Services are provided by ten branch offices, six of which are located in Shreveport, Louisiana, two in Bossier City, one in Minden, Louisiana and one in Benton, 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.

Segment Reporting

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

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (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 credit losses, deferred taxes, and those related to acquisition accounting.

Significant Group Concentrations of Credit Risk

Most of the Company’s activities are provided to customers of the Bank by ten branch offices, six of which are located in the city of Shreveport, Louisiana, two in Bossier City, Louisiana, one in Minden, Louisiana and one in Benton, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City-Minden combined statistical area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana.

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, 2026 and 2025, cash and cash equivalents consisted of the following:

		2026				2025
		(In thousands)
Cash on Hand		$	2,105			$	2,070
Demand Deposits at Other Institutions			30,274				14,127
Federal Funds Sold			1,925				1,150
Total		$	34,304			$	17,347

Securities

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

Investments in debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums and accretion of discounts, using the interest method. Investments in debt securities that are not classified as held-to-maturity 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 debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of June 30, 2026 and 2025.

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

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

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

Acquisition Accounting

Acquisitions are accounted for under the purchase method of accounting. The acquisition method of accounting requires the Company as the acquirer to recognize the fair value of assets acquired and liabilities assumed at the acquisition date, as well as recognize goodwill. If the purchase price exceeds the sum of the estimated fair values of the tangible and identifiable intangible assets acquired less the estimated fair value of the liabilities assumed in an acquisition, goodwill is recognized. The Company records provisional amounts of fair value at the time of acquisition. The provisional fair values are subject to modification for up to one year after the acquisition.

Loans Held-for-Sale

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

Loans Receivable

Loans receivable are stated 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.

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

 

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

 

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

Allowance for Credit Losses

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

 

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

 

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

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

 

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

 

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

possible in the future, it is not practical or desirable to defer writing off these basically worthless loans. Accordingly, these loans are charged-off before period end.

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

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

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

Off-Balance Sheet Credit Related Financial Instruments

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

Real Estate Owned

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and 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

Goodwill

Goodwill represents the excess of the purchase price over the fair value of the net identifiable assets acquired. Goodwill has an indefinite useful life and is evaluated for impairment annually, or more frequently if events and circumstances indicate that the asset might be impaired. If, as a result of impairment testing, the fair value of goodwill is lower than its carrying amount, goodwill must be written down to its implied fair value. Goodwill impairment was neither indicated nor recorded during the years ended June 30, 2026 or 2025.

Core Deposit Intangible

Core deposit intangibles represent the estimated value of long-term deposit relationships acquired in business combinations. The accumulated amortization of the Core deposit intangible is $1.033 million, and the carrying value as of June 30, 2026 was $675,000, to be expensed over 79 months. The Company’s policy is to amortize these intangibles on an accelerated basis over their estimated useful life, which the estimated useful lives are periodically reviewed for reasonableness. Core deposit intangibles are tested for impairment if events and circumstances indicate the carrying amount of the asset may not be recoverable from future cash flows.

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

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

Non-Direct Response Advertising

The Company expenses all advertising costs, except for direct-response advertising, as incurred. Non-direct response advertising costs were $123,000 and $145,000 for the years ended June 30, 2026 and 2025, 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, 2026 and 2025, 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 (Loss)

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 debt 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 (loss).

The components of accumulated other comprehensive income (loss), included in stockholders’ equity, are as follows:

		2026				2025
		(In thousands)
Net Unrealized Loss on Debt Securities Available-for-Sale		$	(2,356	)		$	(2,449	)
Tax Effect			494				515
Net-of-Tax Amount		$	(1,862	)		$	(1,934	)

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

Note 2. Securities

The following tables summarize the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at June 30, 2026 and 2025 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

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

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

June 30, 2025		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
		(In thousands)
Available-for-sale
Mortgage-backed securities: residential		$	36,330			$	76			$	2,525			$	33,881
State and political subdivision			365				-				-				365
Total available-for-sale		$	36,695			$	76			$	2,525			$	34,246

June 30, 2025		Amortized Cost				Gross Unrecognized Gains				Gross Unrecognized Losses				Fair Value
		(In thousands)
Held-to-maturity
Mortgage-backed securities: residential		$	60,075			$	-			$	10,140			$	49,935
State and political subdivision			1,259				-				55				1,204
Total held-to-maturity		$	61,334			$	-			$	10,195			$	51,139

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

June 30, 2026		Amortized Cost				Fair Value
		(In thousands)
Available-for-sale
One to five years		$	2,426			$	2,372
Five to ten years			12,118				11,533
Beyond ten years			31,436				29,719
Total available-for-sale		$	45,980			$	43,624
Held-to-maturity
Five to ten years		$	7,013			$	6,244
Beyond ten years			48,426				40,414
Total held-to-maturity		$	55,439			$	46,658