NASDAQ: HFBL

Pursuant to the regulations under Sections 23A and 23B of the Federal Reserve Act, Home Federal Bank and Home Federal Bancorp have entered into an expense sharing agreement. Under this
agreement, Home Federal Bancorp will reimburse Home Federal Bank for the time that employees of Home Federal Bank devote to activities of Home Federal Bancorp, the portion of the expense of the annual independent audit attributable to Home
Federal Bancorp, and all expenses attributable to Home Federal Bancorp’s public filing obligations under the Securities Exchange Act of 1934.

Market Area

Our primary market area for loans and deposits is in northwest Louisiana, particularly Caddo Parish and neighboring communities in Bossier and Webster Parishes, which are located in the Shreveport-Bossier
City-Minden combined statistical area.

Our primary market area in northern Louisiana has a diversified economy with employment in services, government, and wholesale/retail trade constituting the basis of the local economy, with service jobs being the
largest component. The majority of the services are health care related as Shreveport has become a regional hub for health care. The casino gaming industry also supports a significant number of the service jobs. The energy sector has a
prominent role in the regional economy, resulting from oil and gas exploration and drilling.

Competition. We face significant competition both in attracting deposits and in making loans. Our most direct competition for deposits has come
historically from commercial banks, credit unions, and other savings institutions located in our primary market area, including many large financial institutions which have greater financial and marketing resources available to them. In
addition, we face significant competition for investors’ funds from short-term money market securities, mutual funds, and other corporate and government securities. We do not rely upon any individual group or entity for a material portion of
our deposits. Our ability to attract and retain deposits depends on our ability to generally provide a rate of return, liquidity, and risk comparable to that offered by competing investment opportunities.

Our competition for real estate loans comes principally from mortgage banking companies, commercial banks, other savings institutions, and credit unions. We compete for loan originations
primarily through the interest rates and loan fees we charge and the efficiency and quality of services we provide borrowers. Factors which affect competition include general and local economic conditions, current interest rate levels, and
volatility in the mortgage markets. Competition may increase as a result of the continuing reduction of restrictions on the interstate operations of financial institutions.

Lending Activities

General. At June 30, 2025, our net loan portfolio amounted to $461.0 million, representing approximately 75.64% of total
assets at that date. Historically, our principal lending activity was the origination of one-to-four family residential loans. At June 30, 2025, one-to-four family residential loans amounted to $175.0 million, or 37.59% 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 $138.9 million, or 29.84% of the total loan portfolio, at June 30, 2025.

The types of loans that we may originate are subject to federal and state laws and regulations. Interest rates charged on loans are affected principally by the demand for such loans, the supply of
money available for lending purposes, and the rates offered by our competitors. These factors are, in turn, affected by general and economic conditions, the monetary policy of the federal government, including the Federal Reserve Board,
legislative and tax policies, and governmental budgetary matters.

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, 2025, our regulatory limit on loans to one borrower was $9.6 million, and the five largest loans or groups of loans to one borrower, including related entities, aggregated $5.6 million, $5.4 million, $5.2 million, $5.2 million, and $4.9 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, 2025.

Loans to or guaranteed by general obligations of a state or political subdivision are not subject to the foregoing lending limits.

Loan Portfolio Composition. The following table shows the composition of our loan portfolio by type of loan at the dates indicated.

June 30,

2025

2024

Percent

Percent

of Total

of Total

Amount

Loans

Amount

Loans

(Dollars in thousands)

Real estate loans:

One-to-four family residential(1)

$

174,978

37.59

%

$

178,347

37.51

%

Commercial – real estate secured:

Owner occupied

85,761

18.82

97,571

20.52

Non-owner occupied

53,159

11.42

45,889

9.65

Total commercial-real estate secured

138,920

29.84

143,460

30.17

Multi-family residential

32,283

6.93

37,092

7.80

Land

30,054

6.45

30,737

6.46

Construction

11,226

2.41

15,704

3.30

Home equity loans and second mortgage loans

2,520

0.54

2,634

0.56

Equity lines of credit

20,354

4.37

17,046

3.58

Total real estate loans

410,335

88.13

425,020

89.38

Commercial business

54,138

11.63

49,256

10.36

Consumer non-real estate loans:

Savings accounts

381

0.08

393

0.08

Consumer loans

739

0.16

855

0.18

Total non-real estate loans

55,258

11.87

50,504

10.62

Total loans

465,593

100.00

%

475,524

100.00

%

Less:

Allowance for credit losses

(4,484

)

(4,574

)

Deferred loan fees

(105

)

(98

)

Net loans receivable (1)

$

461,004

$

470,852

(1)

Does not include loans held-for-sale amounting to $1.5 million and $1.7 million at June 30, 2025 and 2024, respectively.

Origination of Loans. Our lending activities are subject to written underwriting standards and loan origination procedures established by the board of
directors and management. When applicable, loans originated are also subject to the underwriting standards of Fannie Mae, Freddie Mac, HUD, VA, USDA, and correspondent banks that purchase loans we originate. Loan originations are obtained
through a variety of sources, primarily from existing customers, local realtors, and builders. Written loan applications are taken by one of our loan officers. The loan officer also supervises the procurement of credit reports, income and
asset documentation, and other documentation involved with a loan. All appraisals are ordered through an approved appraisal management company in compliance with the Dodd-Frank Consumer Protection Act. Under our lending policy, a title
insurance policy is required on most mortgage loans, with the exception of certain smaller loan amounts where our policy requires a title opinion only. We also require fire and extended coverage casualty insurance in order to protect the
properties securing the real estate loans. Borrowers must also obtain flood insurance policies when the property is in a flood hazard area.

Our loan approval process is intended to assess the borrower’s ability to repay the loan, the viability of the loan, and the value of the property that will secure the loan. All residential
loans originated for sale to FNMA or other investor banks that receive an Approve-Eligible recommendation on the automated underwriting feedback certificate that is applicable for each loan type must be approved by a Bank mortgage
underwriter. Loans that do not receive an Approve-Eligible recommendation must be approved by a Bank mortgage underwriter and the Senior Vice President of Mortgage. In addition, all loans originated to be held on the Bank’s portfolio must be
approved by a Bank mortgage underwriter and the Senior Vice President of Mortgage for loans up to $500,000, and for loans up to $1.0 million by the Senior Credit Officer. Commercial real estate secured loans and lines of credit and commercial
business loans up to $1.0 million must be approved by the Senior Credit Officer or the Chairman of the Board, President and Chief Executive Officer, up to $2.0 million by the Senior Credit Officer and the Chairman of the Board, President and
Chief Executive Officer, and in excess of $2.0 million by the Executive Committee. In accordance with past practice, all loans are ratified by our board of directors.

In recent periods, we have originated and sold a substantial amount of our fixed-rate conforming mortgages to correspondent banks. For the year ended June 30, 2025, we originated $43.2

million of one-to-four family residential loans and sold $18.3 million of such loans. Our residential loan originations primarily consist of conventional, rural
development, FHA, and VA loans.

The following table shows total loans originated, sold, and repaid during the periods indicated.

Year Ended June 30,

2025

2024

(In thousands)

Loan originations:

One-to-four family residential

$

43,174

$

49,685

Commercial — real estate secured:

Owner occupied

18,505

13,060

Non-owner occupied

5,897

10,069

Multi-family residential

23

4,289

Commercial business

61,830

72,577

Land

7,748

19,564

Construction

5,796

23,256

Home equity loans and lines of credit and other consumer

13,457

17,538

Total loan originations

156,430

210,038

Loans purchased

16,047

395

Total loan originations and loans purchased

172,477

210,433

Loans Sold

(18,312

)

(15,982

)

Loan principal repayments

(163,590

)

(211,072

)

Total loan originations and purchases, net of loans sold and principal repayments

(9,425

)

(16,621

)

(Decrease) increase due to other items, net(1)

(616

)

(291

)

Less: (Decrease) increase in loans held for sale

Net (decrease) increase in loan portfolio(2)

$

$ (10,041

)

$

(16,912

)

(1)

Other items consist of deferred loan fees, the allowance for credit losses, loans transferred to other real estate owned, and mark to market amortization for purchased loans.

(2)

Includes net change of loans held for sale

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, 2025, we were within each of the above lending limits.

During fiscal 2025 and 2024, we sold $18.3 million and $16.0 million of loans, respectively. We recognized gain on sale of loans of $384,000 and $265,000 during fiscal 2025 and 2024, respectively.
Loans were sold during these periods primarily to other financial institutions. Such loans were sold against forward sales commitments with servicing released and without recourse after a certain period of time, typically 90 days. The loans
sold primarily consisted of long-term, fixed rate residential real estate loans. We will continue to sell loans in the future to the extent we believe the interest rate environment is unfavorable and interest rate risk is unacceptable.

Contractual Terms to Final Maturities. The following table shows the scheduled contractual maturities of our loans as of June 30, 2025, before giving
effect to net items. Demand loans, loans having no stated schedule of repayments and no stated maturity, and overdrafts are reported as due in one year or less. The amounts shown below do not take into account loan prepayments.

One-to-

Four

Family

Residential

Commercial

Real Estate

Secured

Multi

Family

Residential

Commercial

Business

Land

Construction

Home

Equity

Loans

and Lines

of Credit

and Other

Consumer

Total

(In thousands)

Amounts due after June 30, 2025 in:

One year or less

$

15,027

$

16,918

$

7,265

$

14,738

$

16,605

$

5,045

$

4,309

$

79,907

After one year through two years

18,825

21,699

7,158

2,646

4,060

4,551

5,710

64,649

After two years through three years

27,259

23,571

462

8,220

2,115

130

1,993

63,750

After three years through five years

21,467

44,754

2,473

18,895

5,888

1,500

232

95,209

After five years through ten years

7,779

29,174

2,637

7,909

653

-

1,551

49,703

After ten years through fifteen years

9,040

1,159

11,161

1,730

86

-

10,036

33,212

After fifteen years

75,581

1,645

1,127

-

647

-

163

79,163

Total

$

174,978

$

138,920

$

32,283

$

54,138

$

30,054

$

11,226

$

23,994

$

465,593

The following table sets forth the dollar amount of all loans at June 30, 2025, before net items, due after June 30, 2026, which have fixed interest rates or which have floating or adjustable
interest rates.

Floating or

Fixed-Rate

Adjustable-Rate

Total

(In thousands)

One-to-four family residential

$

103,697

$

56,254

$

159,951

Commercial — real estate secured

116,162

5,840

122,002

Multi-family residential

25,008

10

25,018

Commercial business

37,287

2,113

39,400

Land

9,289

4,160

13,449

Construction

6,026

155

6,181

Home equity loans and lines of credit and other consumer

7,421

12,264

19,685

Total

$

304,890

$

80,796

$

385,686

Scheduled contractual maturities of loans do not necessarily reflect the actual expected term of the loan portfolio. The average life of mortgage loans is substantially less than their average
contractual terms because of prepayments. The average life of mortgage loans tends to increase when current mortgage loan rates are higher than rates on existing mortgage loans and, conversely, decrease when rates on current mortgage loans
are lower than existing mortgage loan rates (due to refinancing of adjustable-rate and fixed-rate loans at lower rates). Under the latter circumstance, the weighted average yield on loans decreases as higher yielding loans are repaid or
refinanced at lower rates.

One-to-Four Family Residential Real Estate Loans. As of June 30, 2025, one-to-four family residential loans were $175.0 million, or 37.59%, 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, 2025, $118.7 million, or 67.85%, 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.

Although we offer adjustable rate loans, substantially all of the single-family loan originations over the last few years have consisted of fixed-rate loans due to the low interest
rate environment. The adjustable-rate loans held in portfolio typically have interest rates which adjust on an annual basis. These loans generally have an annual cap of 1% on any increase or decrease and a cap of 6% above or below the
initial rate over the life of the loan. Such loans are underwritten based on the initial rate plus 2%. At June 30, 2025, $56.3 million, or 32.15%, of our one-to-four family residential mortgage
loans were adjustable rate loans.

Commercial Real Estate Secured Loans. As of June 30, 2025, loans secured by commercial real estate were $138.9 million, or 29.84% of the total loan portfolio, before net items. Of those loans, $85.8 million, or 61.73%, were owner occupied. It is the current policy of Home Federal Bank to lend in a first lien position on real property occupied as a commercial business
property. Home Federal Bank offers fixed and variable rate commercial real estate loans. Home Federal Bank’s commercial real estate loans are limited to a maximum of 85% of the appraised value and have terms up to 15 years, however, the terms
are generally no more than five years with amortization periods of 20 years or less. It is our policy that commercial real estate secured lines of credit are limited to a maximum of 85% of the appraised value of the property and shall not
exceed three to five year amortizations.

Multi-Family Residential Loans. As of June 30, 2025, multi-family residential loans were $32.3 million, or 6.93%, of the total loan portfolio, before net items. Our multi-family residential loan portfolio includes income producing properties of five or more units and low
income housing developments. We obtain personal guarantees on all properties other than those of the public housing authority for which they are not permitted.

Commercial Business Loans. As of June 30, 2025, non-real estate secured commercial loans were $54.1 million, or 11.63%, 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, 2025, land loans were $30.1 million, or 6.45%, 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, 2025, construction loans were $11.2 million, or 2.41%, 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, 2025, we held $940,000

of speculative construction loans.

Home Equity and Second Mortgage Loans. As of June 30, 2025, home equity and second mortgage loans were $2.5 million, or 0.54%, 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, 2025, lines of credit secured by a borrower’s equity in real estate were $20.4 million, or 4.37%, of the total loan portfolio, before net items. The unused portion of equity lines was $13.1 million at June
30, 2025. 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.

Consumer Non-Real Estate Loans. We are authorized to make loans for a wide variety of
personal or consumer purposes. We originate consumer loans primarily in order to accommodate our customers. The consumer loans at June 30, 2025 consist of loans secured by deposit accounts with us, automobile loans, overdraft, and other
unsecured loans.

Consumer non-real estate loans generally have shorter terms and higher interest rates than residential mortgage loans and generally entail greater credit risk than residential mortgage loans,
particularly those loans secured by assets that depreciate rapidly, such as automobiles, boats, and recreational vehicles. In such cases, repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment for
the outstanding loan, and the remaining deficiency often does not warrant further substantial collection efforts against the borrower. In particular, amounts realizable on the sale of repossessed automobiles may be significantly reduced based
upon the condition of the automobiles and the fluctuating demand for used automobiles.

We offer loans secured by deposit accounts held with us. These loans amounted to $381,000, or 0.08%
of the total loan portfolio, before net items, at June 30, 2025. Such loans are originated for up to 100% of the account balance, with a hold placed on the account restricting the withdrawal of the account balance. The interest rate on the
loan is equal to the interest rate paid on the account plus 2%. These loans typically are payable on demand with a maturity date of one year.

Loan Origination and Other Fees. In addition to interest earned on loans, we generally receive loan origination fees or “points” for originating loans.
Loan points are a percentage of the principal amount of the mortgage loan and are charged to the borrower in connection with the origination of the loan. In accordance with accounting guidance, loan origination fees and points are deferred
and amortized into income as an adjustment of yield over the life of the loan.

Asset Quality

General. During fiscal 2025 our annual review commenced in August 2024 and was completed in October 2024. Our next annual review is tentatively scheduled for
January 2026. The scope of the services provided included testing of credit underwriting, adherence to our loan policies, as well as regulatory policies, and recommendations regarding reserve allocations. We expect these reviews will be done
roughly every twelve to eighteen months.

Our collection procedures provide that when a loan is 10 days past due personal contact efforts are attempted, either in person or by telephone. At 15 days past due, a late charge notice is sent
to the borrower requesting payment. If the loan is still past due at 30 days, a formal letter is sent to the borrower stating that the loan is past due and that legal action, including foreclosure proceedings, may be necessary. If a loan
becomes 60 days past due and no progress has been made in resolving the delinquency, a collection letter from legal counsel is sent and personal contact is attempted. When a loan continues in a delinquent status for 90 days or more, and a
repayment schedule has not been made or kept by the borrower, generally a notice of intent to foreclose is sent to the borrower. If the delinquency is not cured, foreclosure proceedings are initiated. In most cases, deficiencies are cured
promptly. While we generally prefer to work with borrowers to resolve such problems, we will institute foreclosure or other collection proceedings, when necessary, to minimize any potential loss.

Loans are placed on non-accrual status when management believes the probability of collection of interest is doubtful. When a loan is placed on non-accrual status, previously accrued but unpaid
interest is deducted from interest income. We generally discontinue the accrual of interest income when the loan becomes 90 days past due, as to principal or interest, unless the credit is well secured and we believe we will fully collect.

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, 2025, we had $970,000 in other real
estate owned consisting of one single family residence compared to $418,000 of real estate owned at June 30, 2024 consisting of two single family residences.

Delinquent Loans. The following table shows the delinquencies in our loan portfolio as of the dates indicated.

June 30,

2025

2024

30 – 89

Days Overdue

90 or More Days

Overdue

30 – 89

Days Overdue

90 or More Days

Overdue

Number

Principal

Number

Principal

Number

Principal

Number

Principal

of Loans

Balance

of Loans

Balance

of Loans

Balance

of Loans

Balance

(Dollars in thousands)

One-to-four family residential

9

$

1,027

6

$

963

7

$

1,319

4

$

1,189

Commercial – real estate secured

1

99

2

967

-

-

-

-

Multi-family residential

-

-

-

-

-

-

-

-

Commercial business

1

8

3

38

-

-

2

90

Land

1

17

-

-

-

-

-

-

Construction

-

-

-

-

-

-

-

-

Home equity loans and lines of credit and other consumer

2

77

2

367

3

62

3

240

Total delinquent loans

14

$

1,228

13

$

2,335

10

$

1,381

9

$

1,519

Delinquent loans to total net loans

0.27

%

0.51

%

0.29

%

0.32

%

Delinquent loans to total loans

0.26

%

0.50

%

0.29

%

0.32

%

Non-Performing Assets. The following table shows the amounts of our non-performing assets (defined as non-accruing loans, accruing loans 90 days or more
past due, and real estate owned) at the dates indicated.

June 30,

2025

2024

(Dollars in thousands)

Non-accruing loans:

One-to-four family residential

$

711

$

1,073

Commercial — real estate secured

967

-

Multi-family residential

-

-

Commercial business

38

90

Land

-

-

Construction

-

-

Home equity loans and lines of credit and other consumer

367

240

Total non-accruing loans

2,083

1,403

Accruing loans 90 days or more past due:

One-to-four family residential

252

116

Commercial — real estate secured

-

-

Multi-family residential

-

-

Commercial business

-

-

Land

-

-

Construction

-

-

Home equity loans and lines of credit and other consumer

-

-

Total non-performing loans(1)

2,335

1,519

Real estate owned, net

970

418

Total non-performing assets

$

3,305

$

1,937

Troubled debt restructurings and modified loans to borrowers experiencing financial difficulty(2)

10

10

Total non-performing assets and troubled debt restructurings and modified loans to borrowers experiencing financial difficulty

$

3,315

$

1,947

Total non-performing loans as a percent of loans, net

0.51

%

0.32

%

Total non-performing assets as a percent of total assets

0.54

%

0.30

%

Total non-performing assets and troubled debt restructurings and modified loans to borrowers experiencing financial difficulty as a percentage of total assets

0.54

%

0.31

%

(1)

Non-performing loans consist of non-accruing loans plus accruing loans 90 days or more past due.

(2)

Troubled debt restructurings and modified loans to borrowers experiencing financial difficulty are not included in non-accruing loans and accruing loans 90 days or more past due.

At June 30, 2025, the Company had $3.3 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $1.9
million of non-performing assets at June 30, 2024, consisting of six one-to-four family residential loans, two home equity loans, three commercial non-real estate loans, two commercial real-estate loans and one single-family residence in other real estate owned at June 30, 2025, compared to five one-to-four family residential loans, four home equity loans, three commercial non-real estate loans,
and two single-family residences in other real estate owned at June 30, 2024.

Classified Assets. Federal regulations require that each insured savings institution classify its assets on a regular basis and the amount of its valuation
allowance is subject to review by Federal bank regulators. There are three classifications for problem assets: “substandard”, “doubtful”, and “loss”. Substandard assets have one or more defined weaknesses and are characterized by the distinct
possibility that the insured institution will sustain some loss, if the deficiencies are not corrected. Doubtful assets have the weaknesses of substandard assets with the additional characteristic that the weaknesses make collection or
liquidation in full on the basis of currently existing facts, conditions, and values questionable, and there is a higher possibility of loss. An asset classified as loss is considered uncollectible and of such little value that continuance as
an asset of the institution is not warranted. Another category designated “special mention” also must be established and maintained for assets which do not currently expose an insured institution to a sufficient degree of risk to warrant
classification as substandard, doubtful, or loss. Assets classified as substandard or doubtful require the institution to establish general allowances for loan losses. If an asset, or portion thereof, is classified as loss, the insured
institution must either establish specific allowances for loan losses in the amount of 100% of the portion of the asset classified loss, or charge-off such amount. General loss allowances established to cover possible losses related to assets
classified substandard or doubtful may be included in determining an institution’s regulatory capital, while specific valuation allowances for loan losses do not qualify as regulatory capital. Federal examiners may disagree with an insured
institution’s classifications and amounts reserved. At June 30, 2025, we had $4.5 million in classified assets. At June 30, 2025 the Company had eight one-to-four family residential loans, two home equity loans, five commercial
non-real-estate loans, two commercial real-estate loans, and one consumer loan classified as substandard. There were no loans classified as doubtful or loss at June 30, 2025. There were four one-to-four family residential mortgage loans,
eleven commercial non-real estate loans, one home equity loan, and one consumer loan designated as special mention at June 30, 2025.

Allowance for Credit Losses. At June 30, 2025, our allowance for credit losses amounted to $4.5 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 $323,000 and $1.0 million of loan charge-offs during fiscal 2025 and 2024,
respectively. Bad debt recoveries amounted to $359,000 and $13,000 during fiscal 2025 and 2024, respectively.

June 30,

2025

2024

(Dollars in thousands)

Total loans outstanding at end of period (1)

$

465,593

$

475,524

Average loans outstanding (2)

460,356

499,237

Allowance for credit losses, beginning of period

4,574

5,173

Impact of ASU 2016-13

-

359

Provision for (recovery of) credit losses

(126

)

40

Recoveries

359

13

Charge-offs

(323

)

(1,011

)

Allowance for credit losses, end of period

$

4,484

$

4,574

Allowance for credit losses as a percent of non-performing loans

191.99

%

300.72

%

Allowance for credit losses as a percent of loans receivable

0.96

%

0.96

%

(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.

June 30,

2025

2024

Amount of

Allowance

Loan

Category

as a %

of Total

Loans

Amount of

Allowance

Loan

Category

as a %

of Total

Loans

(Dollars in thousands)

One-to-four family residential

$

2,202

49.10

%

$

2,346

51.29

%

Commercial – real estate secured

1,202

26.81

1,088

23.79

Multi-family residential

113

2.52

130

2.84

Land

165

3.68

175

3.83

Construction

74

1.65

103

2.25

Home Equity Loans and Lines of Credit

182

4.06

165

3.61

Commercial business

538

12.00

548

11.98

Consumer

8

0.18

19

0.41

Total

$

4,484

100.00

%

$

4,574

100.00

%

Investment Securities

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 table sets forth certain information relating to our investment securities portfolio at the dates indicated.

June 30,

2025

2024

Amortized

Cost

Fair

Value

Amortized

Cost

Fair

Value

(In thousands)

Securities Held-to-Maturity:

Mortgage-backed securities

$

60,075

$

49,935

$

66,017

$

53,230

Municipals

1,259

1,204

1,285

1,220

Total Securities Held-to-Maturity

61,334

51,139

67,302

54,450

Securities Available-for-Sale:

Mortgage-backed securities

36,330

33,881

27,982

24,671

Municipals

365

365

365

366

US Treasury Securities

-

-

2,000

2,000

Total Securities Available for sale…

36,695

34,246

30,347

27,037

Equity Securities

FNBB stock

250

250

250

250

FHLB stock

400

400

1,364

1,364

650

650

1,614

1,614

Total Investment Securities

$

98,679

$

86,035

$

99,263

$

83,101

The following table sets forth the amount of investment securities which contractually mature during each of the periods indicated and the weighted average yields for each range of maturities
at June 30, 2025. The amounts reflect the fair value of our securities at June 30, 2025.

Amounts at June 30, 2025 which Mature in

One

Year

or Less

Weighted

Average

Yield

Over One

Year

Through

Five Years

Weighted

Average

Yield

Over Five

Through

Ten

Years

Weighted

Average

Yield

Over

Ten

Years

Weighted

Average

Yield

(Dollars in thousands)

Bonds and other debt securities:

Mortgage-backed securities

$

-

-

%

$

8

5.73

%

$

8,762

1.83

%

$

75,046

1.84

%

Municipals

567

5.35

-

-

1,002

0.51

-

-

Equity securities(1):

FNBB stock

-

-

-

-

-

-

250

0.01

FHLB stock

-

-

-

-

-

-

400

0.03

Total investment securities

$

567

5.35

%

$

8

5.73

%

$

9,764

2.34

%

$

75,696

1.87

%

(1)

None of the listed equity securities has a stated maturity.

Our investment in equity securities consists primarily of FHLB stock and shares of First National Bankers Bankshares, Inc. (“FNBB”). Management monitors its investment portfolio to determine
whether any investment securities which have unrealized losses should be considered other than temporarily impaired.

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.

The following table sets forth the composition of our mortgage-backed securities portfolio at fair value at each of the dates indicated. The amounts reflect the fair value of our
mortgage-backed securities at June 30, 2025 and 2024.

June 30,

2025

2024

(In thousands)

Fixed rate:

GNMA

$

5,326

$

2,813

FHLMC

31,257

27,979

FNMA

46,538

46,135

Total fixed rate

83,121

76,927

Adjustable rate:

GNMA

692

971

FHLMC

3

3

FNMA

-

-

Total adjustable-rate

695

974

Total mortgage-backed securities

$

83,816

$

77,901

Information regarding the contractual maturities and weighted average yield of our mortgage-backed securities portfolio at June 30, 2025 is presented below. Due to repayments of the
underlying loans, the actual maturities of mortgage-backed securities generally are substantially less than the scheduled maturities. The amounts reflect the fair value of our mortgage-backed securities at June 30, 2025.

Amounts at June 30, 2025 Which Mature in

One Year

or Less

Weighted

Average

Yield

Over One

through

Five Years

Weighted

Average

Yield

Over Five

Through

Ten Years

Weighted

Average

Yield

Over Ten

Years

Weighted

Average

Yield

(In thousands)

Fixed rate:

GNMA

$

-

-

%

$

2

2.61

%

$

-

-

%

$

5,324

0.15

%

FHLMC

-

-

3

3.97

1,428

0.37

29,826

0.67

FNMA

-

-

-

-

7,327

1.66

39,211

1.01

Total fixed-rate

-

-

%

5

6.58

%

8,755

2.03

%

74,361

1.83

%

Adjustable rate:

GNMA

$

-

-

%

$

-

-

%

$

7

5.63

%

$

685

4.68

%

FHLMC

-

-

3

4.29

-

-

-

-

FNMA

-

-

-

-

-

-

-

-

Total adjustable rate

-

-

%

3

4.29

%

5.63

%

685

4.68

%

Total

$

-

-

%

$

8

5.73

%

$

8.762

2.04

%

$

75,046

1.86

%

The following table sets forth the purchases, sales, and principal repayments of our mortgage-backed securities during the periods indicated.

At or For the

Year Ended June 30,

2025

2024

(Dollars in thousands)

Mortgage-backed securities at beginning of period

$

94,000

$

103,631

Purchases

12,695

-

Repayments

(10,348

)

(9,702

)

Sales

(157

)

-

Amortizations of premiums and discounts, net

215

71

Mortgage-backed securities at end of period

$

96,405

$

94,000

Weighted average yield at end of period

1.85

%

1.80

%

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, 2025 and 2024, 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 distribution of, and certain other information relating to, our deposits by type of deposit, as of the dates indicated.

June 30,

2025

2024

Amount

Percent of

Total

Deposits

Amount

Percent of

Total

Deposits

(Dollars in thousands)

Certificate accounts:

0.00% - 0.99%

$

9,207

1.69

%

$

13,964

2.43

%

1.00% - 1.99%

6

-

1,323

0.23

2.00% - 2.99%

22,739

4.16

698

0.12

3.00% - 3.99%

84,775

15.52

2,137

0.37

4.00% - 4.99%

64,248

11.76

146,242

25.48

5.00% - 5.99%

6,382

1.17

50,528

8.81

Total certificate accounts

187,357

34.30

214,892

37.44

Transaction accounts:

Savings accounts

95,627

17.50

76,643

13.35

Non-interest-bearing demand accounts

122,416

22.41

130,334

22.71

NOW accounts

67,119

12.29

66,613

11.60

Money market

73,771

13.50

85,525

14.90

Total transaction accounts

358,933

65.70

359,115

62.56

Total deposits

$

546,290

100.00

%

$

574,007

100.00

%

The following table shows the average balance of each type of deposit and the average rate paid on each type of deposit for the periods indicated.

Year Ended June 30,

2025

2024

Average

Average

Average

Interest

Rate

Average

Interest

Rate

Balance

Expense

Paid

Balance

Expense

Paid

(Dollars in thousands)

Savings accounts

$

90,458

$

1,544

1.71

%

$

74,135

$

479

0.65

%

NOW accounts

70,375

821

1.17

67,224

355

0.53

Money market

76,494

1,656

2.16

93,178

2,296

2.46

Certificates of deposit

189,204

7,420

3.92

213,661

8,868

4.15

Total interest-bearing deposits

426,531

11,441

2.68

%

448,198

11,998

2.68

%

Non-Interest bearing demand accounts

$

128,336

$

-

-

%

$

139,330

$

-

-

%

Total deposits

$

554,867

$

11,441

2.68

%

$

587,528

$

11,998

2.68

%

The following table shows our deposit flows during the periods indicated.

Year Ended June 30,

2025

2024

(In thousands)

Net deposits (withdrawals)

$

(38,817

)

$

(35,365

)

Interest credited

11,100

12,011

Total (decrease) increase in deposits

$

(27,717

)

$

(23,354

)

The following table presents, by various interest rate categories and maturities, the amount of certificates of deposit at June 30, 2025.

Balance at June 30, 2025

Maturing in the 12 Months

Ending June 30,

Certificates of Deposit

2026

2027

2028

Thereafter

Total

(In thousands)

0.00% - 0.99%

$

3,583

$

3,174

$

594

$

1,856

$

9,207

1.00% - 1.99%

-

6

-

-

6

2.00% - 2.99%

20,871

1,867

-

1

22,739

3.00% - 3.99%

78,691

5,834

250

-

84,775

4.00% - 4.99%

63,101

741

194

212

64,248

5.00% - 5.99%

6,382

-

-

-

6,382

Total certificate accounts

$

172,628

$

11,622

$

1,038

$

2,069

$

187,357

The following table shows the maturities of our certificates of deposit in excess of the FDIC insurance limit (generally, $250,000) at June 30, 2025 by time remaining to maturity.

Weighted

Amount

Average Rate

(Dollars in thousands)

September 30, 2025

$

10,311

3.21

%

December 31, 2025

24,502

3.87

March 31, 2026

8,339

3.70

June 30, 2026

4,344

2.80

After June 30, 2026

2,873

2.27

Total certificates of deposit with balances in excess of $250,000

$

50,369

3.53

%

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, 2025, we were permitted to borrow up to an aggregate total of $56.4 million from the Federal Home Loan Bank of Dallas. We
had no Federal Home Loan Bank advances outstanding at June 30, 2025 or June 30, 2024. Additionally, at June 30, 2025, 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 $20.4 million. There were no amounts purchased under this agreement as of June 30, 2025. At June 30, 2025, Home Federal Bancorp had a $4.0
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 or For the Year

Ended June 30,

2025

2024

(Dollars in thousands)

FHLB advances:

Average balance outstanding

$

14

$

3,119

Maximum amount outstanding at any month-end during the period

-

14,100

Balance outstanding at end of period

-

-

Average interest rate during the period

4.65

%

5.77

%

Weighted average interest rate at end of period

-

%

-

%

At June 30, 2025, we had no outstanding advances from the Federal Home Bank of Dallas.

Subsidiaries

At June 30, 2025, 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 67 full-time employees and 9 part-time employees at June 30, 2025. 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.

Volcker Rule Regulations. Regulations have been adopted by the federal banking agencies to implement the provisions of the Dodd-Frank Act, commonly
referred to as the Volcker Rule. The regulations contain prohibitions and restrictions on the ability of financial institutions holding companies and their affiliates to engage in proprietary trading and to hold certain interests in, or to
have certain relationships with, various types of investment funds, including 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 Bancorp qualifies for the exclusion from the Volcker Rule restrictions.

Regulation of Home Federal Bank

General. Home Federal Bank is subject to the regulation of the Office of the Comptroller of the Currency, as its primary federal regulator, the Federal
Deposit Insurance Corporation, as the insurer of its deposit accounts, and, to a limited extent, the Federal Reserve Board.

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 and are backed by the full faith and credit of the U.S. Government. As insurer, the Federal Deposit Insurance Corporation
is authorized to conduct examinations of and to require reporting by insured institutions. It also may prohibit any insured institution from engaging in any activity determined by regulation or order to pose a serious threat to the Deposit
Insurance Fund of the Federal Deposit Insurance Corporation. The Federal Deposit Insurance Corporation also has the authority to initiate enforcement actions against savings institutions after giving the Office of the Comptroller of the
Currency an opportunity to take such action. The Federal Deposit Insurance Corporation assesses deposit insurance premiums on each insured institution. Under the Federal Deposit Insurance
Corporation’s risk-based assessment system, institutions deemed less risky pay lower assessments. Assessments for institutions of less than $10 billion of assets are now based on financial measures and supervisory ratings derived from
statistical modeling estimating the probability of an institution’s failure within three years.

The Dodd-Frank Act required the Federal Deposit Insurance Corporation to revise its procedures to base assessments upon each
insured institution’s total assets less tangible equity instead of deposits. The current assessment range (inclusive of possible adjustments) for insured institutions of less than $10 billion of total assets is 2.5 basis points to 32 basis
points. The Federal Deposit Insurance Corporation has authority to further increase insurance assessments; and therefore
management cannot predict what insurance assessment rates will be in the future. A significant increase in insurance premiums may have an adverse effect on the operating expenses and results of operations of Home Federal Bank

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 required by the OCC to meet several minimum levels of capital
including: a common equity Tier 1 capital to risk-based assets ratio of 4.5%, a Tier 1 capital to risk-based assets ratio of 6.0%, a total capital to risk-based assets ratio of 8%, and a Tier 1 capital to total assets leverage ratio of 4%.
Federal savings institutions must also meet a tangible capital ratio of 1.5%.

For purposes of the regulatory capital requirements, a higher risk weight (150%) is assigned to exposures that are more than 90 days past due or are on nonaccrual status and
to certain commercial real estate facilities that finance the acquisition, development or construction of real property. Unrealized gains and losses on certain “available-for-sale” securities holdings are required to be included for purposes
of calculating regulatory capital unless a one-time opt-out is exercised. Additional constraints are also imposed on the inclusion in regulatory capital of certain mortgage-servicing assets, deferred tax assets and minority interests.
Calculation of all types of regulatory capital is subject to deductions and adjustments specified in the regulations. In assessing an institution’s capital adequacy, the Office of the Comptroller of the Currency takes into consideration, not
only these numeric factors, but qualitative factors as well, and has the authority to establish higher capital requirements for individual institutions when deemed necessary.

In addition to establishing the minimum regulatory capital requirements, the regulations limit a banking organization’s capital distributions and certain discretionary bonus
payments if the banking organization does not hold a “capital conservation buffer” consisting of a minimum of 2.5% of common equity Tier 1 capital to risk-weighted assets in addition to the amount necessary to meet its minimum risk-based
capital requirements.

Legislation enacted in May 2018 required the federal banking agencies, including the Office of the Comptroller of the Currency, to establish for qualifying institutions with
assets of less than $10 billion a “community bank leverage ratio” that ranges between 8% to 10% of consolidated assets. Institutions with capital complying with the ratio and otherwise meeting the specified requirements (including off-balance
sheet exposures of 25% or less of total assets and trading assets and liabilities of 5% or less of total assets) and electing the alternative framework are considered to comply with the applicable regulatory capital requirements, including
the risk-based requirements. Such institutions are also considered “well-capitalized” for prompt corrective action purposes.

The community bank leverage ratio was established at 9% Tier 1 capital to total average assets, effective January 1, 2020. Pursuant to federal legislation enacted in 2020, the
community bank leverage ratio was temporarily lowered to 8% for 2020. Another rule was issued to increase the ratio to 8.5% for calendar year 2021 and to 9% thereafter. A qualifying bank may opt in and out of the community bank leverage ratio
framework on its quarterly call report. A bank that ceases to meet any qualifying criteria is provided with a two-quarter grace period to comply with the community bank leverage ratio requirements or the general capital regulations by the
federal regulators. As of June 30, 2025, Home Federal Bank has not opted into the alternative framework.

At June 30, 2025, Home Federal Bank exceeded each of its capital requirements with common equity tier 1, tier 1 capital, total capital, leverage, and tangible capital ratios of 13.59%,
13.59%, 14.67%, 9.40%, and 9.40%, respectively.

Any savings institution that fails any of the capital requirements is subject to possible enforcement actions by the Office of the Comptroller of the Currency. Such actions could include a
capital directive, a cease and desist order, civil money penalties, establishment of restrictions on the institution’s operations, termination of federal deposit insurance, and the appointment of a conservator or receiver. The Office of the
Comptroller of the Currency’s capital regulation provides that such actions, through enforcement proceedings or otherwise, could require one or more of a variety of corrective actions.

Prompt Corrective Action. The following table shows the amount of capital associated with the different capital categories set forth in
the prompt corrective action regulations.

Capital Category

Total

Risk-Based

Capital

Tier 1

Risk-Based

Capital

Common

Equity Tier 1

Capital

Tier 1

Leverage

Capital

Well capitalized

10% or more

8% or more

6.5% or more

5% or more

Adequately capitalized

8% or more

6% or more

4.5% or more

4% or more

Undercapitalized

Less than 8%

Less than 6%

Less than 4.5%

Less than 4%

Significantly undercapitalized

Less than 6%

Less than 4%

Less than 3%

Less than 3%

In addition, an institution is “critically undercapitalized” if it has a ratio of tangible equity to total assets that is equal to or less than 2.0%. Under specified circumstances, a federal
banking agency may reclassify a well-capitalized institution as adequately capitalized and may require an adequately capitalized institution or an undercapitalized institution to comply with supervisory actions as if it were in the next lower
category (except that the Office of the Comptroller of the Currency may not reclassify a significantly undercapitalized institution as critically undercapitalized).

An institution, generally, must file a written capital restoration plan which meets specified requirements within 45 days of the date that the institution receives notice or is deemed to have
notice that it is undercapitalized, significantly undercapitalized, or critically undercapitalized. A federal banking agency must provide the institution with written notice of approval or disapproval within 60 days after receiving a capital
restoration plan, subject to extensions by the agency. An institution which is required to submit a capital restoration plan must concurrently submit a performance guaranty by each company that controls the institution. In addition,
undercapitalized institutions are subject to various regulatory restrictions, and the appropriate federal banking agency also may take any number of discretionary supervisory actions.

At June 30, 2025, Home Federal Bank was deemed a well-capitalized institution for purposes of the prompt corrective action regulations and as such is not subject to the above mentioned
restrictions.

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.

Home Federal Bank may be prohibited from making capital distributions and its application or notice disapproved if (i) Home Federal Bank would be
undercapitalized following the distribution; (ii) the proposed capital distribution raises safety and soundness concerns;
or (iii) the capital distribution 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, 2025, 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. 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, 2025, Home Federal was in compliance with the above restrictions.

Incentive Compensation. Guidelines adopted by the federal banking agencies pursuant to the FDIA prohibit excessive compensation as an unsafe and unsound practice and
describe compensation as excessive when the amounts paid are unreasonable or disproportionate to the services performed by an executive officer, employee, director, or principal stockholder.

In June 2010, the federal banking agencies issued comprehensive guidance on incentive compensation policies (the “Incentive Compensation Guidance”) intended to ensure that the incentive compensation policies of
banking organizations do not undermine the safety and soundness of such organizations by encouraging excessive risk-taking. The Incentive Compensation Guidance, which covers all employees that have the ability to materially affect the risk
profile of an organization, either individually or as part of a group, is based upon the key principles that a banking organization’s incentive compensation arrangements should (i) provide incentives that do not encourage risk-taking beyond the
organization’s ability to effectively identify and manage risks, (ii) be compatible with effective internal controls and risk management, and (iii) be supported by strong corporate governance, including active and effective oversight by the
organization’s board of directors. Any deficiencies in compensation practices that are identified may be incorporated into the organization’s supervisory ratings, which can affect its ability to make acquisitions or perform other actions. The
Incentive Compensation Guidance provides that enforcement actions may be taken against a banking organization if its incentive compensation arrangements or related risk-management control or governance processes pose a risk to the
organization’s safety and soundness and the organization is not taking prompt and effective measures to correct the deficiencies.

On May 6, 2024, the Office of the Comptroller of the Currency approved a notice of proposed rule-making to implement section 956 of the Dodd–Frank
Act. The proposal would establish new requirements for incentive-based compensation at certain covered institutions. Office of the Comptroller of the Currency-supervised institutions that would be subject to the proposed rule include national
banks, federal savings associations, and federal branches and agencies, as well as these institutions’ subsidiaries (other than brokers, dealers, insurance providers, investment companies, and investment advisers), that offer incentive-based
compensation and have average total consolidated assets of at least $1 billion.

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.

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.

On July 26, 2023, the Securities and Exchange Commission issued a final rule that requires registrants, such as Home Federal Bancorp, to (i) report material cybersecurity incidents on Form 8-K,
(ii) include updated disclosure in Forms 10-K and 10-Q of previously disclosed cybersecurity incidents and disclose previously undisclosed individually immaterial incidents when a determination is made that they have become material on an
aggregated basis, (iii) disclose cybersecurity policies and procedures and governance practices, including at the board and management levels in Form 10-K, and (iv) disclose the board of directors’ cybersecurity expertise. An Item 1.05 Form
8-K will generally be due four business days after a registrant determines that a cybersecurity incident is material. See Item 1C. Cybersecurity for annual disclosures herein.

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, 2025, Home Federal Bank had no advances from the Federal Home Loan Bank and $56.4 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, 2025, Home Federal Bank had $400,000

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, 2025, 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 2025 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, 2025, 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 the Louisiana Corporation Income Tax based on our Louisiana taxable income. The Corporation Income Tax applies at graduated rates from 4% upon the first $25,000
of Louisiana taxable income to 8% on all Louisiana taxable income in excess of $200,000. For these purposes, “Louisiana taxable income” means net income which is earned by us within or derived from sources within the State of Louisiana, after
adjustments permitted under Louisiana law, including a federal income tax deduction. 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) 50% of Home Federal Bank’s real and personal property assessment.

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