In a recent filing with the Securities and Exchange Commission, Home Federal Bancorp, Inc. of Louisiana (NASDAQ:HFBL), a $39.37 million market cap regional bank trading near its InvestingPro Fair Value, disclosed a new transition agreement for a key executive.
According to the document filed on Friday, the company, which maintains a healthy 4.03% dividend yield and has maintained dividend payments for 20 consecutive years, has entered into an amended and restated agreement with Senior Vice President and Senior Credit Officer Adalberto Cantu, Jr.
Under the terms of the agreement, Mr. Cantu will continue to serve in his current full-time role through the end of 2025. Starting January 1, 2026, he will transition to a part-time Special Assets Manager and consultant for the bank, working no more than 20 hours per week until November 15, 2026, unless a shorter period is mutually agreed upon.
During his remaining time in the full-time position, Mr. Cantu will retain his current annual salary, subject to potential increases, and will be eligible for bonus payments at the discretion of the bank's board of directors. Once he shifts to the part-time role in 2026, his base salary will be reduced to 50% of his final full-time salary.
Mr. Cantu's benefits will continue through 2025, including eligibility for the bank's benefit plans, disability, life, and AD&D insurance coverage. Additionally, the bank will pay for his Medicare supplement and Part D drug coverage through the end of 2026 and provide a monthly mobile phone allowance while he remains employed.
Should Mr. Cantu remain employed through November 15, 2026, adhere to the terms of the agreement, retire on that date, and provide a timely general release of claims, he will receive a $10,000 severance payment. If his employment ends before this date due to disability, death, resignation for good reason, or termination by the bank without cause, he will only receive continued insurance coverage.
The specifics of this arrangement are detailed in Exhibit 10.1 of the 8-K filing, which serves as the source of this information. This filing provides transparency regarding the executive transition plan for one of Home Federal Bancorp's senior officers. InvestingPro analysis reveals the bank maintains a FAIR overall financial health score, with additional insights available to subscribers, including multiple ProTips about the company's financial strength and market position.
In other recent news, Home Federal Bancorp, Inc. of Louisiana announced substantial changes in its board and executive team. Walter T. Colquitt, III, a long-standing board member, announced his immediate retirement, with the board deciding not to fill his position. Simultaneously, Senior Vice President and Chief Financial Officer Glen W. Brown will transition to the role of Treasurer, with Brad Ezernack, the bank's current Vice President and Controller, set to succeed him.
In other developments, the company's Annual Meeting of Shareholders saw the election of two new directors, James R. Barlow and Thomas Steen Trawick, Jr., for a three-year term. Furthermore, shareholders approved the appointment of Carr, Riggs & Ingram, LLC as the company's independent registered public accounting firm for the fiscal year ending June 30, 2025.
Lastly, Ezernack, who has been with Home Federal Bank since August 2023, brings extensive experience from his previous roles at Highland Clinic, APMC, and other financial institutions. These shifts represent the company's recent strategic adjustments in its leadership structure.
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