Home Federal Bancorp, Inc. of Louisiana (HFBL): Business Model Canvas [Dec-2025 Updated]

You're looking to see exactly how a long-standing community bank like Home Federal Bancorp, Inc. of Louisiana (HFBL) is navigating today's market, and honestly, their Business Model Canvas tells a clear story. We've broken down how this institution, rooted in Northwest Louisiana since 1924, is balancing a stable core deposit base of \$546.3 million as of June 30, 2025, with a strategic pivot toward higher-yielding commercial loans, all while maintaining a rock-solid capital buffer with a CET1 ratio of 13.59%. This model generated \$18.7 million in Net Interest Income for the year ended June 30, 2025, by focusing on local relationships and disciplined risk management. Dive into the nine building blocks below to see the precise mechanics behind their stability and growth strategy.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Key Partnerships

You're looking at the relationships Home Federal Bancorp, Inc. of Louisiana relies on to keep the gears turning, especially as of late 2025. These aren't just casual acquaintances; these are the vendors and counterparties that enable core operations and market reach.

The financial context for these partnerships is set by the fiscal year ended June 30, 2025. Book value per share stood at $17.66, and net income for the year was $3.9 million. Total deposits were $546.3 million as of that date. This financial footing supports the operational agreements in place.

The partnerships that facilitate the flow of funds and services look like this:

• - Core banking system providers (e.g., Fiserv, Jack Henry)
• - Correspondent banks for check clearing and treasury services
• - Secondary market purchasers for fixed-rate residential mortgages: Loans sold amounted to $18.3 million for fiscal 2025.
• - Local businesses and community organizations for defintely brand visibility: Presenting Sponsor of Cystic Fibrosis Foundation's Annual Fundraiser, which raised over $50,000 for CF research and treatment.

Regarding the Federal Home Loan Bank (FHLB) system, Home Federal Bancorp, Inc. of Louisiana reported zero advances from the FHLB at both June 30, 2025, and June 30, 2024, though other borrowings totaled $4.0 million at June 30, 2025.

The reliance on the secondary market for mortgage assets is clear from the volume. Home Federal Bancorp, Inc. of Louisiana underwrote its mortgage loans to allow for their sale in the secondary market. That activity involved selling $18.3 million in loans in fiscal 2025.

Community engagement is quantified by direct support. The support for the Bossier Military Affairs Council is a stated priority, and the financial commitment to the Cystic Fibrosis Foundation fundraiser was over $50,000 for the year.

Finance: review the impact of the $18.3 million in loan sales on Q3 2025 liquidity by next Tuesday.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Key Activities

You're looking at the core actions Home Federal Bancorp, Inc. of Louisiana takes to make its business run, focusing on the numbers we have as of mid-2025. These activities are all about managing assets, liabilities, and the regulatory environment in northwest Louisiana.

Originate and service commercial real estate and business loans

Home Federal Bancorp, Inc. of Louisiana focuses on growing and diversifying its loan portfolio, with a stated intent to emphasize commercial real estate and business loans to improve portfolio yield. The business primarily originates single-family real estate loans, but commercial lending is a key strategic area. For context, at June 30, 2021, commercial real estate loans stood at $96.2 million, representing 28.18% of the total loan portfolio. The bank offers various commercial financing, including working capital loans, equipment loans, lines of credit, and commercial real estate financing for acquisition, purchase, land development, and construction.

Attract and manage a stable, lower-cost core deposit base

A major activity is securing deposits to fund lending. The bank requires commercial customers to maintain a deposit relationship, typically NOW accounts. Total liabilities decreased to $554.3 million at June 30, 2025, driven largely by a decrease in total deposits to $546.3 million from $574.0 million at June 30, 2024. Still, the management of this base is critical for cost of funds.

Here's the quick math on the deposit composition as of June 30, 2025:

Manage liquidity and capital (CET1 ratio was 13.59% at June 30, 2025)

Capital management is clearly a strength; the Common Equity Tier 1 (CET1) ratio stood at a robust 13.59% on June 30, 2025, against a required ratio for capital adequacy purposes of 4.50%. Total assets for Home Federal Bancorp, Inc. of Louisiana were $609.5 million at that date, with stockholders' equity at $55.2 million. Liquidity is supported by cash and cash equivalents and securities classified as available-for-sale. Other borrowings were reduced to $4.0 million at June 30, 2025, and there were no advances from the FHLB at that date.

Maintain regulatory compliance and risk management

A core activity involves ensuring adherence to OCC regulatory guidelines. Management believes the Bank met all capital adequacy requirements as of June 30, 2025, and was categorized as well capitalized under the prompt corrective action framework. Risk management includes monitoring asset quality; for instance, at December 31, 2024, nonperforming assets were $1.8 million, which was 0.30% of total assets.

Key regulatory metrics as of June 30, 2025 (in thousands):

• Common Equity Tier 1 Ratio: 13.59%
• Tier 1 Capital Ratio: 13.59%
• Total Capital Ratio: 14.67%
• Leverage Ratio: 9.40%

Sell fixed-rate residential mortgage originations for fee income

Home Federal Bancorp, Inc. of Louisiana actively sells a substantial amount of its fixed-rate single-family residential loan originations. This is a direct response to the continued low interest rate environment, which impacts net interest income. The increase in net income for the year ended June 30, 2025, compared to the prior year, resulted partly from an increase of $421,000, or 26.6%, in non-interest income, which would include gains from these sales.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Key Resources

You're looking at the foundational assets Home Federal Bancorp, Inc. of Louisiana (HFBL) relies on to execute its community banking strategy in Northwest Louisiana. These aren't just line items; they are the tangible and intangible pillars supporting operations.

• - Strong capital base and balance sheet stability
• - 10 physical branch locations across Northwest Louisiana
• - Core deposit base of \$546.3 million as of June 30, 2025
• - Experienced local lending officers and management team
• - Digital banking infrastructure (online and mobile platforms)

The capital position is definitely a core strength. As of June 30, 2025, stockholders' equity stood at \$55.2 million, representing a 4.5% increase year-over-year, which speaks to retained earnings and stability. Furthermore, the book value per share climbed to \$17.66 on that date, up from \$16.80 the prior year. That's real backing for the balance sheet.

The physical footprint, while centered in Northwest Louisiana, is substantial for a community bank. Although the provided outline mentions ten locations, public data indicates Home Federal Bank operates 11 offices across four cities, including Shreveport and Bossier City, providing that essential local, in-person touchpoint. This network supports the primary funding source: the core deposit base.

That core deposit base, which excludes volatile brokered funds, was reported at \$546.3 million as of June 30, 2025. This funding structure is key, showing a rotation away from higher-cost Certificates of Deposit (CDs) toward lower-cost savings and NOW accounts, which helps manage funding costs. Honestly, maintaining that deposit level while rotating the mix is a sign of solid customer relationships.

The human capital-the experienced local lending officers and management team-is crucial for underwriting quality in a specific geographic area. The management team's confidence is reflected in the dividend policy; they approved the twelfth consecutive annual increase in the dividend rate, reflecting a payout ratio of approximately 49.5% for the fiscal year ending June 30, 2025. That's a concrete signal of management's view on near-term earnings power.

To support both the physical and lending operations, the digital infrastructure is a necessary resource. While specific investment figures aren't always public, the bank maintains online and mobile platforms to service its deposit base, which supports total assets reported near \$609.6 million in prior periods. Here's a quick look at the key financial metrics underpinning these resources as of the mid-year 2025 reporting period:

The digital side is about accessibility; the physical side is about community depth. Finance: draft 13-week cash view by Friday.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Value Propositions

You're looking at the core value Home Federal Bancorp, Inc. of Louisiana offers its customers and the market. It's not just about the rates; it's about the local structure and the stability that comes with longevity.

Community-focused banking with local decision-making

This bank is defintely rooted in its community, operating as the holding company for Home Federal Bank, which conducts business from ten full-service banking centers in Louisiana, primarily concentrated in northwest Louisiana. The value here is that decisions about your loan or account aren't being made a thousand miles away; they're made locally, which helps build those relationship-based banking ties.

Stability and trust from a bank established in 1924

A century of operation is a powerful value proposition in finance. Home Federal Bancorp, Inc. of Louisiana started way back on April 1, 1924. That long history translates into tangible financial stability, reflected in their strong regulatory capital position as of June 30, 2025. For instance, their Common Equity Tier 1 capital ratio stood at a solid 13.59%, with a Total Capital ratio of 14.67%. Plus, they maintain significant available liquidity, having $56.4 million in borrowing capacity from the Federal Home Loan Bank with no advances outstanding at that date.

Diversified lending products for both retail and commercial clients

Home Federal Bancorp, Inc. of Louisiana's business centers on originating loans, and they offer a broad spectrum of products. As of June 30, 2025, their net loan portfolio totaled $461.0 million, which represented approximately 75.64% of their total assets. This portfolio isn't just one thing; it's spread across several categories, which helps manage risk, even if the concentration is local.

Here's a quick look at how that loan book was shaped at the end of fiscal 2025:

Personalized service for relationship-based banking

The bank's policy emphasizes relationship banking, especially on the funding side. Although they sell a substantial amount of their fixed-rate residential loan originations, they require commercial customers to maintain a deposit relationship, which often consists of NOW accounts or non-interest checking accounts. This focus helps ensure a stable, relationship-driven funding base to support their lending activities. Their net interest income for fiscal 2025 was $18.8 million, showing the core profitability from these relationships.

A strategic focus on higher-yielding commercial loans

While one-to-four family residential loans are the largest single component, the bank's strategy leans toward higher-yielding assets where possible. Their business consists primarily of originating single-family loans, but also, to a lesser extent, commercial real estate loans, commercial business loans, and real estate secured lines of credit, which typically carry higher rates and shorter terms than the single-family loans. This strategy helped their average interest rate spread increase from 2.38% in fiscal 2024 to 2.55% in fiscal 2025. The net interest margin for the three months ended June 30, 2025, was 3.52%.

The bottom line for shareholders in fiscal 2025 was net income of $3.9 million, with book value per share reaching $17.66 at June 30, 2025. Finance: draft the Q4 2025 asset quality review by next Tuesday.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Customer Relationships

You're focused on how Home Federal Bancorp, Inc. of Louisiana (HFBL) maintains its connections with clients in its core North Louisiana market, which is key since the bank has a long history dating back to 1924. The relationship strategy blends traditional, in-person banking with modern digital tools, all while leaning on deep local knowledge to foster loyalty.

The physical presence remains a cornerstone of the relationship model. As of late 2025, Home Federal Bank operates 11 domestic locations across Louisiana. This network supports the commitment to personal, face-to-face service. You can see this commitment in their recent expansion, having opened a new branch in Baton Rouge, which extends their local reach beyond their traditional northwest Louisiana base as reported in their September 26, 2025 filing.

For your commercial clients, the bank deploys dedicated expertise. Greg A. Doyal serves as a Senior Vice President of Commercial Banking, a role explicitly focused on leading business development and working closely with companies to provide tailored banking solutions, which is the essence of a dedicated relationship manager approach. This personalized attention helps HFBL maintain stability, evidenced by their decision to keep zero dependency on wholesale funding, with no brokered deposits or Federal Home Loan Bank (FHLB) advances as of September 30, 2025.

Still, digital access is non-negotiable today. HFBL supports automated self-service through readily available online and mobile banking channels for both consumer and business users. They even provide Digital Banking Guides to help customers get started, showing they are actively supporting the shift to digital tools while maintaining their physical footprint. The bank also allows clients to Apply For Mortgage Loan directly online.

The entire approach is geared toward cultivating long-term customer loyalty, which is a stated strength of Home Federal Bancorp, Inc. of Louisiana. Their differentiation, even against larger institutions, is often cited as resting on their deposit sources, locations, and relationships. This focus on relationships is what underpins their financial health, allowing them to report a book value per share of $18.46 as of September 30, 2025.

Here is a quick look at the relationship touchpoints:

The bank reinforces these connections through a commitment to ethical conduct, where all directors, officers, and employees are expected to act with the highest standards of personal and professional integrity to maintain customer confidence.

You can see the tangible results of this relationship focus in their recent performance metrics:

• Net income for the three months ended September 30, 2025, reached $1.599 million.
• Net interest margin improved to 3.63% for Q3 2025.
• Book value per share stood at $18.46 at the end of September 2025.
• The bank maintained zero dependency on wholesale funding as of September 30, 2025.

Finance: draft the 13-week cash view by Friday.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Channels

You're looking at how Home Federal Bancorp, Inc. of Louisiana gets its products and services-loans, deposits, and account access-to its customers in northwest Louisiana. This is where the rubber meets the road for their community-focused model.

The physical branch network remains central, especially given the local market focus. As of mid-2025, Home Federal Bancorp, Inc. of Louisiana, through its subsidiary Home Federal Bank, operates its physical touchpoints primarily across Shreveport and Bossier City.

• - Physical branch network in the Shreveport-Bossier City area
• - Direct loan origination staff for commercial and residential lending
• - Online and mobile banking applications for account access
• - ATMs and debit card services

Let's break down the physical footprint. While reports from mid-2021 mentioned seven full-service banking offices and one commercial lending office, more recent data suggests a total of 11 Offices across the service area. You can definitely find them on the ground in key Shreveport locations like Downtown, Youree Drive, and Northwood, plus Bossier City locations like Stockwell and Viking Drive. This physical presence supports their lending strategy, which relies on direct engagement.

The direct loan origination channel is key for their core business of originating single-family residential loans, commercial real estate loans, and commercial business loans. While I don't have the exact headcount for the direct loan origination staff as of late 2025, the bank's strategy relies on having the same people who make decisions available to customers. This direct channel is supported by the bank's financial strength, evidenced by a Book value per share increasing to $17.66 at June 30, 2025. They actively manage their balance sheet, having reduced Other borrowings to $4.0 million at June 30, 2025, showing reliance on core deposits rather than wholesale funding for loan deployment.

The digital channels are clearly maintained and promoted, as evidenced by the copyright date of © HFBLA 2025 on their site, showing current operational status. They offer both Consumer Online Banking and Business Online Banking portals, complete with login assistance and Digital Banking Guides for new users. You can use these platforms to manage accounts and apply for a Mortgage Loan directly.

Here's a look at the service points available through these channels:

The ATM and debit card services are integrated into the physical locations; for instance, several branches, including the Viking Drive and Stockwell locations, explicitly mention having a 24-hour ATM onsite. This blends the physical convenience with the digital transaction capability, which is important for a community bank competing in the modern landscape. They definitely keep the local feel while offering modern access points.

Finance: draft 13-week cash view by Friday.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Customer Segments

You're looking at the core clientele Home Federal Bancorp, Inc. of Louisiana serves, which is heavily concentrated in a specific geographic area. The primary market area for loans and deposits is in northwest Louisiana, specifically Caddo Parish and neighboring communities in Bossier and Webster Parishes, which fall within the Shreveport-Bossier City-Minden combined statistical area. Home Federal Bancorp, Inc. of Louisiana conducts business from its ten full-service banking offices and home office in this region.

The customer base is fundamentally split between those providing funds (depositors) and those borrowing funds (loan customers). As of June 30, 2025, the total deposits stood at $546.3 million, representing the primary source of funding from the public.

Retail depositors seeking savings, checking, and CD products contribute to the liability side of the balance sheet. Here's the breakdown of total deposits as of June 30, 2025:

Individuals and families in Northwest Louisiana are served through various lending products, including one-to-four family residential loans and consumer loans. The bank also services home equity loans. To give you a snapshot of credit quality within this segment as of June 30, 2025, the substandard loan category included eight one-to-four family residential loans and two home equity loans.

Small to medium-sized businesses (SMBs) seeking commercial loans are the other major lending segment. Home Federal Bank originates commercial real-estate secured loans and commercial business loans. For context on the credit quality within the commercial book as of June 30, 2025, the substandard assets included five commercial non-real-estate loans and two commercial real-estate loans.

Corporate entities and local organizations are served through the general acceptance of deposits and the provision of various financial services. The loan offerings also include construction loans and land loans, which typically cater to business or organizational development projects. The bank also has one consumer loan classified as substandard as of June 30, 2025, which could represent a small business owner or an individual.

The bank's business primarily consists of attracting deposits from the general public and using those funds to originate loans. This means the entire deposit base, totaling $546.3 million on June 30, 2025, is sourced from these customer segments.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Cost Structure

You're looking at the expenses that drive Home Federal Bancorp, Inc. of Louisiana's operations as of late 2025. These are the costs that chip away at the interest income generated from their loan and investment portfolios. It's all about managing these outflows effectively to boost that bottom line.

The most significant cost component, as expected for a bank, is the interest paid to depositors and lenders. For the fiscal year ended June 30, 2025, the Interest expense on deposits totaled \$11,441 thousand, down from \$11,998 thousand in the prior year. This aligns with the strategic focus of reducing high-cost funding, specifically the reported action of reducing high-cost time deposits by \$27.5 million in FY25.

Total interest expense for the year ended June 30, 2025, was \$11,791 thousand. This figure includes interest paid on deposits plus other borrowings, such as Federal Home Loan Bank advances, which were zero for the period.

Next up are the Non-Interest Expenses, which saw a favorable trend for the year ended June 30, 2025. Total non-interest expense decreased by \$278 thousand compared to fiscal 2024.

Here's a breakdown of key non-interest cost drivers:

• - Personnel and compensation costs saw a notable reduction, with compensation and benefits expense decreasing by \$584 thousand for the year ended June 30, 2025, versus fiscal 2024.
• - For executive oversight, the compensation expense recorded for the Supplemental Executive Retirement Agreement for fiscal 2025 was \$47,609.
• - Occupancy and equipment costs are a steady drain, though a decrease of \$7 thousand was noted for the three months ended December 31, 2024, compared to the prior year's quarter.

General and administrative expenses cover a wide range of operational necessities, including regulatory compliance and technology. You can see several expense lines contributing to the overall non-interest expense reduction in FY25:

The management team is clearly focused on controlling these overheads. Honestly, seeing compensation and benefits expense drop by over half a million dollars while simultaneously managing regulatory and IT costs is a good sign of operational discipline.

The general and administrative costs also showed specific movements in the earlier part of the fiscal year, for the three months ended December 31, 2024, versus 2023:

• - Other non-interest expense fell by \$132 thousand.
• - Audit and examination fees were down by \$80 thousand.
• - Occupancy and equipment expense saw a minor reduction of \$7 thousand.

If you're tracking this closely, Finance: draft 13-week cash view by Friday to see how these expense trends are holding up into Q1 2026.

Home Federal Bancorp, Inc. of Louisiana (HFBL) - Canvas Business Model: Revenue Streams

The revenue streams for Home Federal Bancorp, Inc. of Louisiana (HFBL) are fundamentally driven by traditional banking activities, centered on the spread between interest earned on assets and interest paid on liabilities, supplemented by fee-based services.

The core measure of profitability from this spread is the Net Interest Income (NII). For the fiscal year ended June 30, 2025, Home Federal Bancorp, Inc. of Louisiana reported NII of \$18.7 million, which represented a decrease of \$280,000, or 1.5%, compared to fiscal year 2024's NII of \$19.0 million. This annual decrease was primarily driven by a \$1.4 million reduction in total interest income, partially offset by a \$1.1 million decrease in total interest expense. The average balance of interest-earning assets for the year ended June 30, 2025, stood at \$577.2 million. Overall Total Revenue (TTM) as of late 2025 was reported at \$21.71 Million USD.

Interest income is generated predominantly from the loan portfolio, which at June 30, 2025, totaled \$461.0 million, representing 75.64% of total assets. You can see the composition of this key interest-earning asset class below:

The second major component of revenue is Non-interest income, which is derived from service charges, fees, and other non-lending activities. For the year ended June 30, 2025, non-interest income increased by \$421,000 compared to the prior year. Looking specifically at the three months ended June 30, 2025, the increase in non-interest income was \$173,000. This quarterly increase was detailed by specific fee sources:

• - Increase in gain on sale of loans: \$122,000
• - Increase in service charges on deposit accounts: \$30,000
• - Increase in other non-interest income: \$19,000

The specific amount for Gain on sale of fixed-rate residential mortgage loans for the full fiscal year 2025 isn't explicitly stated separately from the general 'gain on sale of loans' figure, but the quarterly data shows this is a meaningful driver of fee income, contributing \$122,000 to the non-interest income growth in the final quarter of the fiscal year. Service charges and fees are a consistent, albeit smaller, revenue stream, with the quarterly increase of \$30,000 in service charges on deposit accounts providing a clear data point for this revenue stream.