Home Federal Bancorp, Inc. of LouisianaHFBL
Home Federal Bancorp, Inc. of Louisiana Stock Compensation Disclosure
|
Note 13.
|
Stock-Based Compensation
|
Stock Incentive Plans
On November 12, 2014, the stockholders of the Company approved the adoption of the Company’s 2014 Stock Incentive Plan (the 2014 Stock
Incentive Plan) for the benefit of employees and non-employee directors as an incentive to contribute to the success of the Company and to reward employees for outstanding performance and the attainment of targeted goals. The 2014 Stock
Incentive Plan covers a total of 300,000 shares (as adjusted), of which no more than 75,000 shares (as adjusted), or 25% of the plan, may be
share awards. The balance of the plan is reserved for stock option awards which would total 225,000 (as adjusted) stock options
assuming all the stock awards are issued. All incentive stock options granted under the 2014 Stock Incentive Plan are intended to comply with the requirements of Section 422 of the Internal Revenue Code. On January 31, 2024, the Company
granted a total of 4,000 stock options to a key employee vesting ratably over three years commencing February 1, 2024. On July 24, 2024, the Company granted a total of 1,600 plan share awards and 23,000 stock options to directors, officers
and key employees vesting ratably over five years. The 2014 Stock Incentive Plan cost is recognized over the five year vesting
period. The 2014 Stock Incentive Plan terminated on August 13, 2024, however, the 1,600 plan share awards and 155,600 outstanding options as
of June 30, 2025 will remain in effect for the remainder of their five-year vesting and original ten year terms, respectively.
On November 13, 2019, the stockholders of the Company approved the adoption of the Company’s 2019 Stock Incentive Plan (the 2019 Stock
Incentive Plan, together with the 2014 Stock Incentive Plan, the “Stock Incentive Plans”) which provides for a total of 250,000
shares (as adjusted) reserved for future issuance as stock awards or stock options. No more than 62,500 (as adjusted) shares, or 25%, may be granted as stock awards. The balance of the plan is reserved for stock option awards. On November 11, 2020, the Company granted a
total of 62,500 (as adjusted) plan stock awards and 187,500 (as adjusted) stock options to directors, officers and other key employees vesting ratably over five years, with the final vesting November 11, 2025. On July 24, 2024, the Company granted 1,600
stock options to a key employee vesting ratably over five years. The Stock Incentive Plans costs are recognized over the five year vesting period. As of June 30, 2025, there are 800 stock options available for future grant under the 2019 Stock Incentive Plan.
Incentive stock options and non-qualified stock options granted under the Stock Incentive Plans become vested and exercisable at a rate of 20% per year over five years commencing one year from the date of the grant with an additional 20% vesting on each successive anniversary of the date the option was granted. No vesting shall occur after an employee’s employment or service as a director is terminated. In the event of death or
disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable. The Company recognizes compensation expense during the vesting period based on the fair value of the
option on the date of the grant.
Stock Awards
Following is a summary of the status of the stock awards outstanding under the Stock Incentive Plans during the fiscal years
ended June 30, 2025 and 2024 (split adjusted):
|
Awarded Shares
|
||||||||
|
2025
|
2024
|
|||||||
|
Balance - Beginning of Year
|
25,000
|
37,900
|
||||||
|
Granted
|
1,600
|
-
|
||||||
|
Forfeited
|
-
|
-
|
||||||
|
Earned and Issued
|
(13,300
|
)
|
(12,900
|
)
|
||||
|
Balance - End of Year
|
13,300
|
25,000
|
||||||
Compensation expense pertaining to the share awards under the Stock Incentive Plans was approximately $112,000 and $118,000 for the years
ended June 30, 2025 and 2024, respectively.
Stock Options
Following is a summary of the status of the options outstanding during the fiscal years ended June 30, 2025 and 2024 (split adjusted):
|
|
Weighted
|
|||||||||||||||
|
|
Weighted
|
Average
|
||||||||||||||
|
|
Average
|
Remaining
|
Aggregate
|
|||||||||||||
|
|
Number of
|
Exercise
|
Contract
|
Intrinsic
|
||||||||||||
|
|
Shares
|
Price
|
Term
|
Value
|
||||||||||||
|
Outstanding at June 30, 2024
|
319,700
|
$
|
11.83
|
4.30 | $ | 115,197 | ||||||||||
|
Granted
|
24,600
|
11.79
|
||||||||||||||
|
Exercised
|
(10,000
|
)
|
11.09
|
|||||||||||||
|
Forfeited
|
(800
|
)
|
11.86
|
|||||||||||||
|
Outstanding at June 30, 2025
|
333,500
|
$
|
11.85
|
3.82 |
$
|
583,818
|
||||||||||
|
|
||||||||||||||||
|
Options Exercisable at June 30, 2025
|
274,467
|
$
|
11.84
|
3.14 |
$
|
481,818
|
||||||||||
|
Outstanding at June 30, 2023
|
364,916
|
$
|
11.64
|
4.81 | $ | 874,321 | ||||||||||
|
Granted
|
4,000
|
13.69
|
||||||||||||||
|
Exercised
|
(39,616
|
)
|
9.46
|
|||||||||||||
|
Forfeited
|
(9,600
|
)
|
15.31
|
|||||||||||||
|
Outstanding at June 30, 2024
|
319,700 |
$
|
11.83
|
4.30
|
$
|
115,197
|
||||||||||
|
|
||||||||||||||||
|
Options Exercisable at June 30, 2024
|
242,834
|
$
|
11.80
|
3.62
|
$
|
(80,340
|
)
|
|||||||||
The fair value of each option granted is estimated on the grant date using the Black-Scholes model. The following assumptions were made in
estimating fair value.
|
2014/2019 Stock
|
2014 Stock
|
2019 Stock
|
||||||||||
|
Incentive Plan
|
Incentive Plan
|
Incentive Plan
|
||||||||||
|
July 24, 2024
|
January 31, 2024
|
November 11, 2020
|
||||||||||
|
Dividend Yield
|
4.41 |
% |
3.65 |
% |
2.78 |
% |
||||||
|
Expected Term
|
10 years
|
10 years
|
10 years
|
|||||||||
|
Risk-Free Interest Rate
|
4.28 |
% |
3.99 |
% |
0.98 |
% |
||||||
|
Expected Life
|
10 years
|
10 years
|
10 years
|
|||||||||
|
Expected Volatility (1)
|
35.51 |
% |
36.58 |
% |
25.56 |
% |
||||||
(1) Weekly volatility is annualized by multiplying by the square root of 52.
A summary of the status of the Company’s nonvested options as of June 30, 2025 and changes during the year ended June 30, 2025 is as follows
(split adjusted):
|
Weighted
|
||||||||
|
Number of
|
Average
|
|||||||
|
|
Shares
|
Exercise Price
|
||||||
|
Nonvested at June 30, 2024
|
76,066
|
$
|
11.92
|
|||||
|
Vested
|
(41,633
|
)
|
11.92
|
|||||
|
Granted
|
24,600
|
11.79
|
||||||
|
Forfeited
|
-
|
-
|
||||||
|
Nonvested at June 30, 2025
|
59,033
|
$
|
11.87
|
|||||
For the years ended June 30, 2025 and 2024, compensation expense charged to operations for stock options granted under the Stock Incentive
Plans was $94,000 and $69,000,
respectively.
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Sep 26, 2025 | Showing above |
| 2024 | Sep 30, 2024 | |
| 2023 | Oct 2, 2023 | |
| 2022 | Sep 26, 2022 | |
| 2021 | Sep 28, 2021 | |
| 2020 | Sep 29, 2020 | |
| 2017 | Sep 21, 2017 | |
About Stock Compensation Disclosures
Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.
Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.