10-Q

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
FORM 10-Q
(Mark One)
T	QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended: March 31, 2014

or

G	TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
For the transition period from		to

Commission file number: 001-35019

HOME FEDERAL BANCORP, INC. OF LOUISIANA
(Exact name of registrant as specified in its charter)
Louisiana	02-0815311
(State or other jurisdiction of incorporation or organization)	(IRS Employer Identification No.)
624 Market Street, Shreveport, Louisiana		71101
(Address of principal executive offices)		(Zip Code)
(318) 222-1145
(Registrant’s telephone number, including area code)
N/A
(Former name, former address and former fiscal year, if changed since last report)
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   TYes     G No
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).         TYes    G No
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act. (Check One):
Large accelerated filer                                                      G                                Accelerated filer                                           G
Non-accelerated filer                                                        G                                Smaller reporting company                        T
(Do not check if a smaller reporting company)
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
G Yes      T No
Shares of common stock, par value $.01 per share, outstanding as of May 9, 2014: The registrant had 2,238,181 shares of common stock outstanding.

INDEX

PART I - FINANCIAL INFORMATION		Page
Item 1:	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders' Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	7
Item 2:	Management's Discussion and Analysis of Financial Condition and Results of Operations	24
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	33
Item 4:	Controls and Procedures	33
PART II - OTHER INFORMATION
Item 1:	Legal Proceedings	33
Item 1A:	Risk Factors	33
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3:	Defaults Upon Senior Securities	34
Item 4:	Mine Safety Disclosures	34
Item 5:	Other Information	34
Item 6:	Exhibits	34
SIGNATURES

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

		March 31, 2014			June 30, 2013
		(Dollars In Thousands)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing              Deposits with Other Banks of $123 and $1,028 for              March 31, 2014 and June 30, 2013, Respectively)	$	6,649		$	3,685
Securities Available-for-Sale		40,094			47,961
Securities Held-to-Maturity		1,113			1,465
Loans Held-for-Sale		6,795			3,464
Loans Receivable, Net of Allowance for Loan Losses of $2,346 and $2,240, Respectively		218,731			206,079
Accrued Interest Receivable		914			774
Premises and Equipment, Net		7,814			6,559
Bank Owned Life Insurance		6,161			6,030
Deferred Tax Asset		813			775
Other Assets		440			363
Total Assets	$	289,524		$	277,155
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits	$	229,246		$	211,922
Advances from Borrowers for Taxes and Insurance		222			277
Advances from Federal Home Loan Bank of Dallas		17,454			21,662
Other Bank Borrowings		--			500
Other Accrued Expenses and Liabilities		623			812
Total Liabilities		247,545			235,173
STOCKHOLDERS’ EQUITY
Preferred Stock – 10,000,000 Shares of $.01 Par Value    Authorized; None Issued and Outstanding		--			--
Common Stock – 40,000,000 Shares of $.01 Par Value    Authorized; 3,062,386 Shares Issued and    2,243,047 Shares Outstanding at March 31, 2014;    2,351,950 Shares Outstanding at June 30, 2013		34			32
Additional Paid-in Capital		32,675			32,218
Treasury Stock, at Cost – 819,339 shares at March 31, 2014;    710,436 at June 30, 2013		(15,486	)		(13,168	)
Unearned ESOP Stock		(1,590	)		(1,676	)
Unearned RRP Trust Stock		(609	)		(863	)
Retained Earnings		26,974			25,395
Accumulated Other Comprehensive (Loss) Income		(19	)		44
Total Stockholders’ Equity		41,979			41,982
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	289,524		$	277,155

See accompanying notes to consolidated financial statements.

1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended March 31,				For the Nine Months Ended March 31,
	2014		2013		2014		2013
	(In Thousands, Except per Share Data)
INTEREST INCOME
Loans, Including Fees	$	2,968	$	2,880	$	8,979	$	8,564
Investment Securities		1		5		4		20
Mortgage-Backed Securities		235		383		780		1,314
Other Interest-Earning Assets		2		2		10		10
Total Interest Income		3,206		3,270		9,773		9,908
INTEREST EXPENSE
Deposits		522		543		1,652		1,693
Federal Home Loan Bank Borrowings		37		1		125		4
Other Bank Borrowings		--		76		14		263
Total Interest Expense		559		620		1,791		1,960
Net Interest Income		2,647		2,650		7,982		7,948
PROVISION FOR LOAN LOSSES		30		214		118		441
Net Interest Income after Provision for Loan Losses		2,617		2,436		7,864		7,507
NON-INTEREST INCOME
Gain on Sale of Real Estate		129		--		129		--
Gain on Sale of Loans		360		655		1,240		1,992
Gain on Sale of Securities		1		--		35		215
Income on Bank Owned Life Insurance		43		44		131		141
Other Income		94		71		264		273
Total Non-Interest Income		627		770		1,799		2,621
NON-INTEREST EXPENSE
Compensation and Benefits		1,474		1,403		4,204		4,068
Occupancy and Equipment		202		148		634		540
Data Processing		152		126		353		313
Audit and Examination Fees		57		52		163		158
Franchise and Bank Shares Tax		85		84		263		224
Advertising		62		61		195		181
Legal Fees		82		151		320		398
Loan and Collection		28		25		92		87
Deposit Insurance Premium		39		32		107		95
Other Expense		123		125		381		338
Total Non-Interest Expense		2,304		2,207		6,712		6,402
Income Before Income Taxes		940		999		2,951		3,726
PROVISION FOR INCOME TAX EXPENSE		302		323		955		1,231
Net Income	$	638	$	676	$	1,996	$	2,495
EARNINGS PER COMMON SHARE:
Basic	$	0.31	$	0.31	$	0.96	$	1.04
Diluted	$	0.31	$	0.30	$	0.94	$	1.01
DIVIDENDS DECLARED	$	0.06	$	0.06	$	0.18	$	0.18

See accompanying notes to consolidated financial statements.

2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2014			2013			2014			2013
	(In Thousands)
Net Income	$	638		$	676		$	1,996		$	2,495
Other Comprehensive Income (Loss), Net of Tax
Unrealized Holding Gain (Loss) on Securities Available-for-Sale,      Net of Tax of $28 and $27 in 2014, respectively, and $121 and      $240 in 2013, respectively		(55	)		(234	)		(53	)		(466	)
Reclassification Adjustment for Gain Included in      Net Income, Net of Tax of $0 and $5 in 2014, respectively, and      $7 and $69 in 2013, respectively		--			(14	)		(10	)		(134	)
Net Other Comprehensive Income (Loss)		(55	)		(248	)		(63	)		(600	)
Total Comprehensive Income	$	583		$	428		$	1,933		$	1,895

See accompanying notes to consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

NINE MONTHS ENDED MARCH 31, 2014 AND 2013

(Unaudited)

	Common Stock		Additional Paid-in Capital		Unearned ESOP Stock			Unearned RRP Trust Stock			Retained Earnings			Treasury Stock			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
								(In Thousands)
BALANCE – June 30, 2012	$	32	$	31,199	$	(1,792	)	$	(1,114	)	$	22,897		$	(2,706	)	$	1,372		$	49,888
Net Income		--		--		--			--			2,495			--			--			2,495
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			--			(600	)		(600	)
RRP Shares Earned		--		--		--			251			--			--			--			251
Stock Options Vested		--		125		--			--			--			--			--			125
Common Stock Issuance for Stock     Option Exercises		--		742		--			--			--			--			--			742
ESOP Compensation Earned		--		62		87			--			--			--			--			149
Acquisition of Treasury Stock		--		--		--			--			--			(10,244	)		--			(10,244	)
Dividends Declared		--		--		--			--			(492	)		--			--			(492	)
BALANCE – March 31, 2013	$	32	$	32,128	$	(1,705	)	$	(863	)	$	24,900		$	(12,950	)	$	772		$	42,314
BALANCE – June 30, 2013	$	32	$	32,218	$	(1,676	)	$	(863	)	$	25,395		$	(13,168	)	$	44		$	41,982
Net Income		--		--		--			--			1,996			--			--			1,996
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			--			(63	)		(63	)
RRP Shares Earned		--		--		--			254			--			--			--			254
Stock Options Vested		--		122		--			--			--			--			--			122
Common Stock Issuance for Stock     Option Exercises		2		270		--			--			--			--			--			272
ESOP Compensation Earned		--		65		86			--			--			--			--			151
Acquisition of Treasury Stock		--		--		--			--			--			(2,318	)		--			(2,318	)
Dividends Declared		--		--		--			--			(417	)		--			--			(417	)
BALANCE – March  31, 2014	$	34	$	32,675	$	(1,590	)	$	(609	)	$	26,974		$	(15,486	)	$	(19	)	$	41,979

See accompanying notes to consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Nine Months Ended
	March 31,
	2014			2013
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,996		$	2,495
Adjustments to Reconcile Net Income to Net
Cash (Used in) Provided by Operating Activities
Net Amortization and Accretion on Securities		50			13
Gain on Sale of Securities		(35	)		(215	)
Gain on Sale of Loans		(1,240	)		(1,991	)
Amortization of Deferred Loan Fees		(65	)		(197	)
Depreciation of Premises and Equipment		223			156
ESOP Expense		151			149
Stock Option Expense		122			125
Recognition and Retention Plan Expense		157			157
Deferred Income Tax		(5	)		(120	)
Provision for Loan Losses		118			441
Increase in Cash Surrender Value on Bank Owned Life Insurance		(131	)		(141	)
Gain on Sale of Real Estate		(129	)		--
Changes in Assets and Liabilities:
Loans Held-for-Sale – Originations		(49,753	)		(84,719	)
Loans Held-for-Sale – Sale and Principal Repayments		47,661			93,693
Accrued Interest Receivable		(140	)		37
Other Operating Assets		(78	)		329
Other Operating Liabilities		(93	)		(623	)
Net Cash (Used In) Provided by Operating Activities		(1,191	)		9,589
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		(12,812	)		(28,480	)
Deferred Loan Fees Collected		108			81
Acquisition of Premises and Equipment		(1,914	)		(1,270	)
Proceeds from Sale of Real Estate		566			--
Activity in Available-for-Sale Securities:
Proceeds from Sales of Securities		13,019			34,638
Principal Payments on Mortgage-Backed Securities		8,029			11,282
Purchases of Securities		(13,292	)		(31,515	)
Activity in Held-to-Maturity Securities:
Redemption Proceeds		488			107
Purchases of Securities		(136	)		(646	)
Net Cash Used in Investing Activities		(5,944	)		(15,803	)

See accompanying notes to consolidated financial statements.

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
	Nine Months Ended
	March 31,
	2014			2013
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits	$	17,324		$	(18,368	)
Proceeds from Federal Home Loan Bank Advances		401,850			162,400
Repayments of Advances from Federal Home Loan Bank		(406,057	)		(156,123	)
Net Decrease in Advances from Borrowers for Taxes and Insurance		(55	)		(40	)
Dividends Paid		(417	)		(492	)
Acquisition of Treasury Stock		(2,113	)		(10,085	)
Proceeds from Stock Options Exercised		67			583
Proceeds from other Bank Borrowings		300			1,500
Repayment of Other Bank Borrowings		(800	)		1,000
Net Cash Provided by (Used In) Financing Activities		10,099			(21,625	)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS		2,964			(27,839	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		3,685			34,863
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	6,649		$	7,024
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	1,797		$	1,979
Income Taxes Paid		884			1,353
Market Value Adjustment for Loss on Securities Available-for-Sale		(95	)		(909	)

See accompanying notes to consolidated financial statements.

6

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.           Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2014, are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2014.

The Company follows accounting standards set by the Financial Accounting Standards Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations and cash flows.  References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2014.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses.

Nature of Operations

Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank located in Shreveport, Louisiana.  The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.  The Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by four full-service banking offices and one agency office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2014, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a significant amount of business.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

7

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.           Summary of Accounting Policies (continued)

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral and prevailing economic conditions.  The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

8

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.           Summary of Accounting Policies (continued)

Allowance for Loan Losses (continued)

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of expected future cash flows or the fair value of the collateral of the loan.  If the present value of expected future cash flows or fair value of the collateral is less than the recorded investment in the loan, the Bank will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.

An allowance is also established for uncollectible interest on loans classified as substandard.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.

It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb possible losses in the existing loan portfolio.

Off-Balance Sheet Credit Related Financial Instruments

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

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.

Premises and Equipment

Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

9

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.           Summary of Accounting Policies (continued)

Income Taxes (continued)

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

2.           Securities

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	March 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	325	$	13	$	--	$	338
FNMA Mortgage-Backed Certificates		15,464		701		101		16,064
GNMA Mortgage-Backed Certificates		24,334		7		649		23,692
Total Debt Securities		40,123		721		750		40,094
Total Securities Available-for-Sale	$	40,123	$	721	$	750	$	40,094
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
8,633 Shares – Federal Home Loan Bank	$	863	$	--	$	--	$	863
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,113		--		--		1,113
Total Securities Held-to-Maturity	$	$1,113	$	--	$	--	$	1,113

10

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities (continued)

	June 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	397	$	19	$	--	$	416
FNMA Mortgage-Backed Certificates		11,185		775		--		11,960
GNMA Mortgage-Backed Certificates		36,312		10		737		35,585
Total Debt Securities		47,894		804		737		47,961
Total Securities Available-for-Sale	$	47,894	$	804	$	737	$	47,961
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
12,149 Shares – Federal Home Loan Bank	$	1,215	$	--	$	--	$	1,215
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,465		--		--		1,465
Total Securities Held-to-Maturity	$	1,465	$	--	$	--	$	1,465

The amortized cost and fair value of debt securities by contractual maturity at March 31, 2014, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Within One Year or Less	$	3	$	3	$	--	$	--
One through Five Years		282		290		--		--
After Five through Ten Years		184		189		--		--
Over Ten Years		39,654		39,612		--		--
Total	$	40,123	$	40,094	$	--	$	--

For the nine months ended March 31, 2014, proceeds from the sale of securities available-for-sale amounted to $13.0 million. Gross realized gains amounted to $35,000 for the nine months ended March 31, 2014.

11

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities (continued)

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2014 and June 30, 2013 aggregated by investment category and length of time that individual securities have been in a continuous loss position.  There were no unrealized losses on securities held-to-maturity at March 31, 2014 or June 30, 2013.

	March 31, 2014
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale:
Debt Securities
Mortgage-Backed Securities	$	101	$	1,879	$	649	$	23,550
Total Securities Available-for-Sale	$	101	$	1,879	$	649	$	23,550

	June 30, 2013
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	737	$	27,875	$	--	$	--
Total Securities Available-for-Sale	$	737	$	27,875	$	--	$	--

The Company’s 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.

At March 31, 2014, securities with a carrying value of $10.5 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $100.1 million were pledged to secure FHLB advances.

12

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2014			June 30, 2013
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One- to Four-Family Residential	$	82,315		$	73,243
Commercial		49,834			51,169
Multi-Family Residential		19,587			19,587
Land		17,577			15,589
Construction		13,464			16,937
Equity and Second Mortgage		2,538			2,305
Equity Lines of Credit		13,368			12,592
Total Mortgage Loans		198,683			191,422
Commercial Loans		22,242			16,776
Consumer Loans
Loans on Savings Accounts		350			259
Automobile and Other Consumer Loans		110			128
Total Consumer and Other Loans		460			387
Total Loans		221,385			208,585
Less:  Allowance for Loan Losses		(2,346	)		(2,240	)
Unamortized Loan Fees		(308	)		(266	)
Net Loans Receivable	$	218,731		$	206,079

Following is a summary of changes in the allowance for loan losses:

	Nine Months Ended March 31,
	2014			2013
	(In Thousands)
Balance - Beginning of Period	$	2,240		$	1,698
Provision for Loan Losses		118			441
Loan Charge-Offs		(12	)		(15	)
Balance - End of Period	$	2,346		$	2,124

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans according to credit risk.  Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until:  (a) they become past due; (b) management becomes aware of deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification.  In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.  The Company uses the following definitions for risk ratings:

Special Mention - Loans identified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

13

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted.  Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans.  Accordingly, these loans are charged-off before period end.

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

			Special
March 31, 2014	Pass		Mention		Substandard		Doubtful		Total
			(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	81,848	$	396	$	71	$	--	$	82,315
Commercial		49,505		329		--		--		49,834
Multi-Family Residential		19,587		--		--		--		19,587
Land		17,577		--		--		--		17,577
Construction		13,464		--		--		--		13,464
Equity and Second Mortgage		2,538		--		--		--		2,538
Equity Lines of Credit		13,252		89		--		27		13,368
Commercial Loans		22,242		--		--		--		22,242
Consumer Loans		460		--		--		--		460
Total	$	220,473	$	814	$	71	$	27	$	221,385

June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	72,595	$	313	$	335	$	--	$	73,243
Commercial		49,457		--		1,712		--		51,169
Multi-Family Residential		19,587		--		--		--		19,587
Land		15,589		--		--		--		15,589
Construction		16,937		--		--		--		16,937
Equity and Second Mortgage		2,305		--		--		--		2,305
Equity Lines of Credit		12,476		89		--		27		12,592
Commercial Loans		13,545		--		3,231		--		16,776
Consumer Loans		387		--		--		--		387
Total	$	202,878	$	402	$	5,278	$	27	$	208,585

14

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when contractually due.  Loans that experience insignificant payment delays or payment shortfalls are generally not classified as impaired.  On a case-by-case basis, management determines the significance of payment delays and payment shortfalls, taking into consideration all of the circumstances related to the loan, including:  the length of the payment delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The following tables present an aging analysis of past due loans, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

													Recorded
													Investment
			60-89		Greater						Total		>90 Days
	30-59 Days		Days Past		Than 90		Total				Loans		and
March 31, 2014	Past Due		Due		Days		Past Due		Current		Receivable		Accruing
					(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	151	$	89	$	267	$	507	$	81,808	$	82,315	$	196
Commercial		--		--		--		--		49,834		49,834		--
Multi-Family Residential		--		--		--		--		19,587		19,587		--
Land		--		--		--		--		17,577		17,577		--
Construction		--		--		--		--		13,464		13,464		--
Equity and Second Mortgage		--		--		--		--		2,538		2,538		--
Equity Lines of Credit		60		27		--		87		13,281		13,368		--
Commercial Loans		--		--		--		--		22,242		22,242		--
Consumer Loans		--		--		--		--		460		460		--
Total	$	211	$	116	$	267	$	594	$	220,791	$	221,385	$	196

June 30, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment  > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	1,437	$	925	$	622	$	2,984	$	70,259	$	73,243	$	236
Commercial		--		--		--		--		51,169		51,169		--
Multi-Family Residential		--		--		--		--		19,587		19,587		--
Land		--		--		--		--		15,589		15,589		--
Construction		--		--		--		--		16,937		16,937		--
Equity and Second Mortgage		--		--		--		--		2,305		2,305		--
Equity Lines of Credit		--		--		27		27		12,565		12,592		--
Commercial Loans		--		--		--		--		16,776		16,776		--
Consumer Loans		--		--		--		--		387		387		--
Total	$	1,437	$	925	$	649	$	3,011	$	205,574	$	208,585	$	236

Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties are considered troubled debt restructurings and designated as impaired.  There were no troubled debt restructurings as of March 31, 2014 or June 30, 2013.

15

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2014 and the year ended June 30, 2013, was as follows:

	Real Estate Loans
													Home
													Equity
													Loans
	1-4 Family				Multi-								and Lines		Commercial			Consumer
March 31, 2014	Residential		Commercial		Family			Land		Construction			of Credit		Loans			Loans		Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	1,023	$	338	$	103		$	127	$	146		$	85	$	412		$	6	$	2,240
Charge-Offs		--		--		--			--		--			--		(12	)		--		(12	)
Recoveries		--		--		--			--		--			--		--			--		--
Current Provision		187		48		(12	)		33		(23	)		3		(122	)		4		118
Ending Balances	$	1,210	$	386	$	91		$	160	$	123		$	88	$	278		$	10	$	2,346
Evaluated for Impairment:
Individually		--		--		--			--		--			--		--			--		--
Collectively		1,210		386		91			160		123			88		278			10		2,346
Loans Receivable:
Ending Balances - Total	$	82,315	$	49,834	$	19,587		$	17,577	$	13,464		$	15,906	$	22,242		$	460	$	221,385
Ending Balances:
Evaluated for Impairment:
Individually		467		329		--			--		--			116		--			--		912
Collectively	$	81,848	$	49,505	$	19,587		$	17,577	$	13,464		$	15,790	$	22,242		$	460	$	220,473

	Real Estate Loans
June 30, 2013	1-4 Family Residential		Commercial		Multi- Family			Land			Construction			Home Equity  Loans and Lines of Credit			Commercial  Loans		Consumer Loans			Total
	(In Thousands)
Allowance for loan losses:
Beginning Balances	$	306	$	185	$	205		$	270		$	311		$	110		$	281	$	30		$	1,698
Charge-Offs		--		--		--			--			--			(16	)		--		--			(16	)
Recoveries		--		--		--			--			--			--			--		--			--
Current Provision		717		153		(102	)		(143	)		(165	)		(9	)		131		(24	)		558
Ending Balances	$	1,023	$	338	$	103		$	127		$	146		$	85		$	412	$	6		$	2,240
Evaluated for Impairment:
Individually		--		--		--			--			--			--			--		--			--
Collectively		1,023		338		103			127			146			85			412		6			2,240
Loans Receivable:
Ending Balances - Total	$	73,243	$	51,169	$	19,587		$	15,589		$	16,937		$	14,897		$	16,776	$	387		$	208,585
Ending Balances:
Evaluated for Impairment:
Individually		648		1,712		--			--			--			116			3,231		--			5,707
Collectively	$	72,595	$	49,457	$	19,587		$	15,589		$	16,937		$	14,781		$	13,545	$	387		$	202,878

16

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for loan losses by loan portfolio class for the nine months ended March 31, 2013, was as follows:

	Real Estate Loans
														Home
														Equity
														Loans
	1-4 Family				Multi-									and Lines			Commercial		Consumer
March 31, 2013	Residential		Commercial		Family			Land			Construction			of Credit			Loans		Loans			Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	306	$	185	$	205		$	270		$	311		$	110		$	281	$	30		$	1,698
Charge-Offs		--		--		--			--			--			(15	)		--		--			(15	)
Recoveries		--		--		--			--			--			--			--		--			--
Current Provision		610		149		(110	)		(138	)		(150	)		(10	)		114		(24	)		441
Ending Balances	$	916	$	334	$	95		$	132		$	161		$	85		$	395	$	6		$	2,124
Evaluated for Impairment:
Individually		--		--		--			--			--			--			--		--			--
Collectively		916		334		95			132			161			85			395		6			2,124
Loans Receivable:
Ending Balances - Total	$	67,352	$	51,450	$	19,976		$	15,899		$	15,298		$	12,828		$	15,600	$	404		$	198,807
Ending Balances:
Evaluated for Impairment:
Individually		768		972		--			--			--			116			3,704		--			5,560
Collectively	$	66,584	$	50,478	$	19,976		$	15,899		$	15,298		$	12,712		$	11,896	$	404		$	193,247

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

March 31, 2014	Unpaid  Principal Balance		Recorded Investment With No Allowance		Recorded  Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	467	$	467	$	--	$	467	$	--	$	487
Commercial		329		329		--		329		--		344
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		116		116		--		116		--		116
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	912	$	912	$	--	$	912	$	--	$	947

June 30, 2013	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	648	$	648	$	--	$	648	$	--	$	650
Commercial		1,712		1,712		--		1,712		--		1,151
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		116		116		--		116		--		116
Commercial Loans		3,231		3,231		--		3,231		--		3,534
Consumer Loans		--		--		--		--		--		--
Total	$	5,707	$	5,707	$	--	$	5,707	$	--	$	5,451

17

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. Loans totaling $98,000 and $413,000 were in non-accrual status at March 31, 2014 and June 30, 2013, respectively. If the non-accrual loans had been accruing interest at their original contracted rates, approximate gross interest income that would have been recorded for the nine months ended March 31, 2014 and 2013, was $2,700 and $13,000, respectively.

4.           Deposits

Deposits at March 31, 2014 and June 30, 2013 consist of the following classifications:

	March 31, 2014		June 30, 2013
	(In Thousands)
Non-Interest Bearing	$	32,476	$	26,027
NOW Accounts		26,977		24,625
Money Markets		43,703		39,482
Passbook Savings		11,846		9,524
		115,002		99,658
Certificates of Deposit		114,244		112,264
Total Deposits	$	229,246	$	211,922

5.           Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and nine months ended March 31, 2014 and 2013 were calculated as follows:

		Three Months Ended				Nine Months Ended
		March 31,				March 31,
		2014		2013		2014		2013
		(In Thousands, Except Per Share Data)
Net income	$	638	$	676	$	1,996	$	2,495
Weighted average shares outstanding - basic		2,030		2,180		2,081		2,400
Effect of dilutive common stock equivalents		52		67		50		68
Adjusted weighted average shares outstanding - diluted		2,082		2,247		2,131		2,468
Basic earnings per share	$	0.31	$	0.31	$	0.96	$	1.04
Diluted earnings per share	$	0.31	$	0.30	$	0.94	$	1.01

For the three months ended March 31, 2014 and 2013, there were outstanding options to purchase 236,935 and 275,162 shares, respectively, at a weighted average exercise price of $13.90 and $13.25 respectively, per share, and for the nine months ended March 31, 2014 and 2013, there were outstanding options to purchase 243,964 and 294,533 shares, respectively, at a weighted average exercise price of $13.85 and $13.20 per share, respectively. For the quarter and nine months ended March 31, 2014, 51,356 and 49,551 options, respectively were included in the computation of diluted earnings per share.

18

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.           Earnings Per Share (continued)

The following table presents the components of weighted average outstanding shares for purposes of calculating earnings per share:

	Three Months Ended March 31,						Nine Months Ended March 31,
	2014			2013			2014			2013
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(160	)		(171	)		(163	)		(174	)
Average unearned RRP shares		(55	)		(69	)		(61	)		(75	)
Average treasury shares		(817	)		(642	)		(757	)		(413	)
Weighted average shares outstanding		2,030			2,180			2,081			2,400

6.           Stock-Based Compensation

Recognition and Retention Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement (the “2005 Recognition Plan”) as an incentive to retain personnel of experience and ability in key positions.  The aggregate number of shares of the Company’s common stock subject to award under the 2005 Recognition Plan totaled 63,547 shares.  As the shares were acquired for the 2005 Recognition Plan, the purchase price of these shares was recorded as a contra equity account.  As the shares are distributed, the contra equity account is reduced.  During the nine months ended March 31, 2014, 561 shares vested and were released from the 2005 Recognition Plan Trust and 1,125 shares remained in the 2005 Recognition Plan Trust at March 31, 2014.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Recognition and Retention Plan and Trust Agreement (the “2011 Recognition Plan”, together with the 2005 Recognition  Plan, the  “Recognition  Plan”) as  an  incentive  to  retain  personnel  of  experience and ability in key positions.  The aggregate number of shares of the Company’s common stock available for award under the 2011 Recognition Plan totaled 77,808 shares.  At March 31, 2014, 50,124 shares remained in the 2011 Recognition Plan Trust.

Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number of shares covered by the Recognition Plan award over five years.  Generally, if the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award, the recipient shall forfeit the right to any shares subject to the award that have not been earned.  In the case of death or disability of the recipient or a change in control of the Company, the Recognition Plan awards will be vested and shall be distributed as soon as practicable thereafter.

The Recognition Plan cost is recognized over the five year vesting period. During the nine months ended March 31, 2014, the Company recognized $157,000 in expense related to the Recognition Plans.

Stock Option Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the “2005 Option Plan”) for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2005 Option Plan totaled 158,868.  Both incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan.  As of March 31, 2014, 49,041 options were outstanding under the 2005 Option Plan and 2,133 were available for future grant.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.           Stock-Based Compensation (continued)

Stock Option Plan (continued)

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Stock Option Plan (the “2011 Option Plan”, together with the 2005 Option Plan, the “Option Plans”) for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2011 Option Plan totaled 194,522.  Both incentive stock options and non-qualified stock options may be granted under the 2011 Option Plan.  As of March 31, 2014, 169,234 options had been granted under the 2011 Option Plan of which 3,516 options had been exercised 3,112 had been forfeited and 28,400 were available for future grant.

Under the Option Plans, the exercise price of each option cannot be less than the fair market value of the underlying common stock as of the date of the option grant and the maximum term is ten years. Incentive stock options and non-qualified stock options granted under the Option 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 the 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 accounts for the Option Plans under the guidance of FASB ASC Topic 718, Compensation – Stock Compensation.

7.           Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2.5 million and $2.2 million at March 31, 2014 and June 30, 2013, respectively.

8.           Fair Value Disclosures

The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments.  Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash.  In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.  The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment.  Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.  These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments:

Cash and Cash Equivalents

The carrying amount approximates the fair value of cash and cash equivalents.

Securities to be Held-to-Maturity and Available-for-Sale

Fair values for investment securities, including mortgage-backed securities, are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.  The carrying values of restricted or non-marketable equity securities approximate their fair values.  The carrying amount of accrued investment income approximates its fair value.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.            Fair Value Disclosures (continued)

Mortgage Loans Held-for-Sale

Because these loans are normally disposed of within ninety days of origination, their carrying value closely approximates the fair value of such loans.

Loans Receivable

For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value.  Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.

Deposit Liabilities

The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts.  Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate is estimated using the rates currently offered for deposits of similar maturities.

Advances from Federal Home Loan Bank

The carrying amount of short-term borrowings approximates their fair value.  The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.

Off-Balance Sheet Credit-Related Instruments

Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.

The fair value of interest rate floors and caps contained in some loan servicing agreements and variable rate mortgage loan contracts are considered immaterial within the context of fair value disclosure requirements.  Accordingly, no fair value estimate is provided for these instruments.

The carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2014				June 30, 2013
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	6,649	$	6,649	$	3,685	$	3,685
Securities Available-for-Sale		40,094		40,094		47,961		47,961
Securities to be Held-to-Maturity		1,113		1,113		1,465		1,465
Loans Held-for-Sale		6,795		6,795		3,464		3,464
Loans Receivable		218,731		221,859		206,079		206,055
Financial Liabilities
Deposits		229,246		226,770		211,922		211,130
Advances from FHLB		17,454		17,770		21,662		22,045
Off-Balance Sheet Items
Mortgage Loan Commitments		249		249		291		291

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.           Fair Value Disclosures (continued)

The estimated fair values presented above could be materially different than net realizable value and are only indicative of the individual financial instrument’s fair value.  Accordingly, these estimates should not be considered an indication of the fair value of the Company taken as a whole.

The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820").  ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.  SFAS No. 157 was issued to establish a uniform definition of fair value.  The definition of fair value is market-based as opposed to company-specific, and includes the following:

· Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value;

· Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date;

· Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique;

· Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and

· Expands disclosures about instrument that are measured at fair value.

The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements.  The valuation hierarchy favors the transparency of inputs to the valuation of an asset or liability as of the measurement date.  The three levels are defined as follows:

· Level 1 – Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate.

· Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

· Level 3 – Fair value is based uponinputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8. Fair Value Disclosures (continued)

Fair values of assets and liabilities measured on a recurring basis at March 31, 2014 and June 30, 2013 are as follows:

	Fair Value Measurements Using:
March 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	338	$	338
FNMA Mortgage-Backed Certificates		--		16,064		16,064
GNMA Mortgage-Backed Certificates		--		23,692		23,692
Total	$	--	$	40,094	$	40,094

	Fair Value Measurements Using:
June 30, 2013	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	416	$	416
FNMA Mortgage-Backed Certificates		--		11,960		11,960
GNMA Mortgage-Backed Certificates		--		35,585		35,585
Total	$	--	$	47,961	$	47,961

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 2. MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

General

The Company’s results of operations are primarily dependent on the results of the Bank, the Company’s wholly owned subsidiary. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings.  Results of operations are also affected by provisions for loan losses and loan sale activities.  Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing and other expense.  Our results of operations are also significantly affected by general economic and competitive conditions, particularly changes in interest rates, government policies and actions of regulatory authorities.  Future changes in applicable law, regulations or government policies may materially impact our financial conditions and results of operations.

Home Federal Bank operates from its main office in Shreveport, Louisiana and three full service branch offices and an agency office located in Shreveport and Bossier City, Louisiana.  The Company’s primary market area is the Shreveport-Bossier City metropolitan area.  The Company offers security brokerage and advisory services through a third party provider at its agency office, which also serves as the office for the commercial lending division and as a loan production office.  During the quarter ended March 31, 2013, the Bank determined to relocate its agency office from leased property to a building at 222 Florida Street, Shreveport, Louisiana that had been held for sale.  The agency office relocation was completed during the quarter ended December 31, 2013.  The Bank completed its purchase of a parcel of land during the quarter ended December 31, 2013, located at 7964 East Texas Street, Bossier City, Louisiana, which will serve as the site of a future branch office.

Critical Accounting Policies

Allowance for Loan Losses.  The Company has identified the calculation of the allowance for loan losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies.  Provisions for loan losses are based upon management’s periodic valuation and assessment of the overall loan portfolio and the underlying collateral, trends in non-performing loans, current economic conditions and other relevant factors in order to maintain the allowance for loan losses at a level believed by management to represent all known and inherent losses in the portfolio that are both probable and reasonably estimable.  Although management uses the best information available, the level of the allowance for loan losses remains an estimate which is subject to significant judgment and short-term change.

Income Taxes. Deferred income tax assets and liabilities are determined using the liability (or balance sheet) method.  Under this method, the net deferred tax asset or liability is determined based on the tax effects of the temporary differences between the book and tax bases of the various assets and liabilities and gives current recognition to changes in tax rates and laws.  The realization of our deferred tax assets principally depends upon our achieving projected future taxable income.  We may change our judgments regarding future profitability due to future market conditions and other factors.  We may adjust our deferred tax asset balances if our judgments change.

Discussion of Financial Condition Changes from June 30, 2013 to March 31, 2014

General

At March 31, 2014, the Company reported total assets of $289.5 million, an increase of $12.4 million, or 4.5%, compared to total assets of $277.2 million at June 30, 2013. The increase in assets was comprised primarily of increases in loans receivable, net of $12.7 million, or 6.1%, from $206.1 million at June 30, 2013, to $218.7 million at March 31, 2014, loans held-for-sale of $3.3 million, or 96.2%, from $3.5 million at June 30, 2013, to $6.8 million at March 31, 2014, cash and cash equivalents of $3.0 million, or 80.4%, from $3.7 million at June 30, 2013 to $6.6 million at March 31, 2014, and an increase in premises and equipment, net of $1.3 million, or 19.1%, from $6.6 million at June 30, 2013 to $7.8 million at March 31, 2014. These increases were partially offset by a decrease in investment securities of $8.2 million, or 16.6%, from $49.4 million at June 30, 2013, to $41.2 million at March 31, 2014. The increase in loans held-for-sale results primarily from an increase at March 31, 2014 in receivables from financial institutions purchasing the Company’s loans held-for-sale.

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Discussion of Financial Condition Changes from June 30, 2013 to March 31, 2014 (continued)

Cash and Cash Equivalents

Cashand cash equivalents increased $3.0 million, or 80.4%, from $3.7 million at June 30, 2013 to $6.6 million at March 31, 2014. The $3.0 million increase in cash and cash equivalents was due to normal increases in demand deposit accounts, partially offset by a decrease in federal funds balances.

Loans Receivable, Net

Loans receivable, net, increased by $12.7 million, or 6.1%, to $218.7 million at March 31, 2014 compared to $206.1 million at June 30, 2013.  During the nine months ended March 31, 2014, our total loan originations amounted to $169.8 million compared to $180.8 million for the nine months ended March 31, 2013.  The increase in loans receivable, net, was primarily due to increases in one- to four-family residential loans of $9.1 million, commercial business loans of $5.5 million and land loans of $2.0 million, partially offset by decreases in residential construction loans of $3.5 million and commercial real estate loans of $1.3 million.

Loans Held-for-Sale

Loans held-for-sale increased $3.3 million, or 96.2%, from $3.5 million at June 30, 2013 to $6.8 million at March 31, 2014.  The increase in loans held-for-sale resulted primarily from an increase at March 31, 2014 in receivables from financial institutions purchasing the Company’s loans held-for-sale.

Investment Securities

Investment securities amounted to $41.2 million at March 31, 2014 compared to $49.4 million at June 30, 2013, a decrease of $8.2 million, or 16.6%. The decrease in investment securities was primarily due to the sale of mortgage backed securities in the amount of $13.0 million, and by principal payments on securities of $8.0 million, partially offset bythe acquisition of $13.3 million of mortgage-backed securities.

Premises and Equipment, Net

Premises and equipment, net, increased $1.3 million, to $7.8 million at March 31, 2014, compared to $6.6 million at June 30, 2013, primarily due to improvements to the new agency office and main office and the acquisition of real estate for future branch office locations.

Asset Quality

At March 31, 2014, the Company had $294,000 of non-performing assets compared to $649,000 at June 30, 2013. Our non-performing assets at both March 31, 2014 and June 30, 2013 consisted of four single family residential loans, two of which were purchased from a local mortgage originator secured by property in our market area that are 90 days or more past due and accruing interest, one single family residential loan we originated that was 90 days or more past due and on non-accrual status, one single family residential loan less than 90 days past due and accruing, and a line of credit totaling $27,000 that was on non-accrual status. Following the expansion of the Company’s mortgage lending operations, the Company has not purchased mortgage loans since fiscal 2008. At March 31, 2014, the Company had one residential mortgage loan classified as substandard in the amount of 71,000 compared to one commercial real estate loan, two commercial business loans and one residential mortgage loan in the aggregate amount of $5.3 million at June 30, 2013. The Company had one line of credit classified as doubtful in the amount of $27,000 at both March 31, 2014 and June 30, 3013.

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Discussion of Financial Condition Changes from June 30, 2013 to March 31, 2014 (continued)

Total Liabilities

The Company’s total liabilities amounted to $247.5 million at March 31, 2014, an increase of approximately $12.4 million, or 5.3%, compared to total liabilities of $235.2 million at June 30, 2013.  The primary reason for the increase in liabilities was due to an increase in deposits of $17.3 million, or 8.2%, from $211.9 million at June 30, 2013 to $229.2 million at March 31, 2014, partially offset by a decrease in advances from the Federal Home Loan Bank of $4.2 million, or 19.4%, to $17.5 million at March 31, 2014 from $21.7 million at June 30, 2013. Non-interest bearing accounts increased $6.4 million, or 24.8%, and passbook savings accounts increased $2.3 million or 24.4%, at March 31, 2014 compared to June 30, 2013. Certificates of Deposit increased $2.0 million, or 1.8%, from $112.3 million at June 30, 2013 to $114.2 million at March 31, 2014. Interest bearing NOW accounts increased $2.4 million, or 9.6%, from $24.6 million at June 30, 2013 to $27.0 million at March 31, 2014. The Company utilizes brokered certificates of deposit as a component of its strategy for lowering Home Federal Bank’s overall cost of funds. The brokered certificates of deposit, all of which have maturity dates greater than twelve months, are callable by Home Federal Bank after twelve months pursuant to early redemption provisions.  At both March 31, 2014 and June 30, 2013, the Company had $12.7 million in brokered deposits.

Shareholders’ Equity

Shareholders’ equity was $42.0 million at both March 31, 2014 and June 30, 2013. The primary changes within shareholders’ equity from June 30, 2013, were dividends paid of $417,000, acquisition of treasury stock of $2.3 million, and a decrease in the Company’s accumulated other comprehensive income of $63,000. These decreases in shareholders’ equity were partially offset by net income of $2.0 million, proceeds from the issuance of common stock from the exercise of stock options of $272,000, and the vesting of restricted stock awards, stock options and release of employee stock ownership plan shares totaling $527,000.

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At March 31, 2014, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements.

Comparison of Operating Results for the Three and Nine month Periods Ended March 31, 2014 and 2013

General

Net income amounted to $638,000 for the three months ended March 31, 2014 compared to $676,000for the same period in 2013, a decrease of $38,000 or 5.6%.  The decrease was primarily due to a $143,000 or 18.6%, decrease in non-interest income, a $97,000 or 4.4%, increase in non-interest expense and a $3,000, or 0.1% decrease in net interest income, partially offset by a $184,000 or 86.0% decrease in the provision for loan losses, and a $21,000 or 6.5% decrease in income tax expense for the 2014 period compared to the same period in 2013.

Net income amounted to $2.0 million for the nine months ended March 31, 2014 compared to net income of $2.5 millionfor the same period in 2013, a decrease of $499,000, or 20.0%.  The decrease was primarily due to an $822,000, or 31.4%, decrease in non-interest income, and a $310,000, or 4.8%, increase in non-interest expense, partially offset by a $323,000, or 73.2%, decrease in the provision for loan losses, an increase of $34,000, or 0.4%, in net interest income and a $276,000 or 22.4% decrease in income tax expense.

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Comparison of Operating Results for the Three and Nine month Periods Ended March 31, 2014 and 2013 (continued)

Net Interest Income

Net interest income for the three months ended March 31, 2014 was $2.6 million, a decrease of $3,000, or 0.1%, in comparison to $2.7 million for the three months ended March 31, 2013.  The decrease in net interest income for the three months ended March 31, 2014, was primarily due to a $64,000, or 2.0%, decrease in total interest income, partially offset by a decrease of $61,000, or 9.8%, in aggregate interest expense on borrowings and deposits primarily due to an overall decrease in rates paid on interest-bearing liabilities.  The Company’s average interest rate spread was 3.71% for the three months ended March 31, 2014, compared to 3.80% for the three months ended March 31, 2013. The Company’s net interest margin was 3.92% for the three months ended March 31, 2014, compared to 4.03% for the quarter ended March 31, 2013. The decrease in the average interest rate spread on a comparative quarterly basis was primarily the result of a decrease of 22 basis points in average yield on interest-earning assets. The decrease in net interest margin was primarily the result of a higher average volume of interest earning assets for the quarter ended March 31, 2014 compared to the prior year quarterly period.

Net interest income for the nine months ended March 31, 2014 was $8.0 million, an increase of $34,000, or 0.4%, in comparison to the nine months ended March 31, 2013.  The increase in net interest income for the nine month period was primarily due to a $169,000, or 8.6% decrease in interest expense on borrowings and deposits due to an overall decline in the average cost of funds partially offset by a $135,000, or 1.4%, decrease in total interest income.  The Company’s average interest rate spread was 3.68% for the nine months ended March 31, 2014, compared to 3.80% for the nine months ended March 31, 2013. The Company’s net interest margin was 3.91% for the nine months ended March 31, 2014, compared to 4.08% for the nine months ended March 31, 2013.  The decrease in net interest margin and average interest rate spread on a comparative nine month basis is attributable primarily to a decrease of 29 basis points in average yield on interest earning assets for the nine months ended March 31, 2014 compared to the prior year nine month period.

Provision for Losses on Loans

Based on an analysis of historical experience, the volume and type of lending conducted by Home Federal Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to our market area and other factors related to the collectability of Home Federal Bank’s loan portfolio, a provision for loan losses of $30,000 and $118,000 was made during the three and nine months ended March 31, 2014, respectively, compared to a $214,000 and $441,000 provision made during the three and nine months ended March 31, 2013,  respectively.   The allowance for loan losses was $2.3 million, or 1.1%  of  total  loans,  at March 31, 2014, compared to $2.1 million, or 1.1%, of total loans at March 31, 2013.  At March 31, 2014, Home Federal Bank had five non-performing loans in the aggregate amount of 294,000 and noother non-performing assets or troubled-debt restructurings.  At March 31, 2013, Home Federal had five non-performing loans in the aggregate amount of $768,000 and no other non-performing assets or troubled debt restructurings.  There can be no assurance that the loan loss allowance will be sufficient to cover losses on non-performing assets in the future.

Non-interest Income

Total non-interest income amounted to $627,000 for the three months ended March 31, 2014, a decrease of $143,000 or 18.6% compared to $770,000 for the same period in 2013.  The decrease was due to decreases of $295,000 in gain on sale of loans held for sale, partially offset by $129,000 in gain on sale of real estate and an increase of $23,000 in other non-interest income.

Total non-interest income amounted to $1.8 million for the nine months ended March 31, 2014, a decrease of $822,000, or 31.4%, compared to $2.6 million for the same period in 2013.  The decrease was primarily due to decreases of $752,000 in gain on sale of loans held for sale, $180,000 in gain on sale of investments, $10,000 in income on bank owned life insurance and $9,000 in other non-interest income, partially offset by $129,000 in gain on sale of real estate.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2014 and 2013 (continued)

The $129,000 gain on sale of real estate during both the three and nine month periods was due to the disposition of a lot in Bossier City, Louisiana that had been held for a possible branch location site.

Non-interest Expense

Total non-interest expense increased $97,000, or 4.4%, for the three months ended March 31, 2014 compared to the prior year period.  The increase in non-interest expense for the quarter ended March 31, 2014, compared to the same period in 2013, is primarily attributable to increases of $71,000 in compensation and benefits expense, $54,000 in occupancy and equipment expense, $26,000 in data processing expense, $7,000 in deposit insurance premiums and $5,000 in audit and examination fees. These increases were partially offset by decreases of $69,000 in legal fees and $2,000 in other non-interest expenses.

Total non-interest expense increased $310,000, or 4.8%, for the nine months ended March 31, 2014 compared to the prior year period. The increase in non-interest expense for the nine months ended March 31, 2014, compared to the same period in 2013, is primarily attributable to increases of $136,000 in compensation and benefits expense, $94,000 in occupancy and equipment expense, $40,000 in data processing, $39,000 in franchise and bank shares taxes, $94,000 in other non-interest expenses and $14,000 in advertising expense. These increases were partially offset by a decrease of $78,000 in legal fees.

The increase in compensation and benefits expense for the three and nine month periods was a result of normal compensation increases including stock options and recognition and retention plan expense and the hiring of additional commercial and residential loan officers.  The aggregate compensation expense recognized by the Company for its Stock Option, ESOP and Recognition and Retention Plans amounted to $145,000 and $430,000 for the three and nine months ended March 31, 2014, compared to $147,000 and $431,000 for the three and nine months ended March 31, 2013, respectively.

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings.  For the three and nine months ended March 31, 2014, the Company recognized franchise and bank shares tax expense of $85,000 and $263,000, respectively, compared to $84,000 and $224,000 for the same periods in 2013.

Income Taxes

Income taxes amounted to $302,000 and $955,000 for the three and nine months ended March 31, 2014, respectively, resulting in effective tax rates of 32.1% and 32.4%, respectively. Income taxes amounted to $323,000 and $1.2 million for the three and nine months ended March 31, 2013, respectively, resulting in effective tax rates of 32.3% and 33.0%, respectively.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2014 and 2013 (continued)

Average Balances, Net Interest Income, Yields Earned and Rates Paid.  The following tables show for the periods indicated the total dollar amount of interest from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates, and the net interest margin. Tax-exempt income and yields have not been adjusted to a tax-equivalent basis. All average balances are based on monthly balances. Management does not believe that the monthly averages differ significantly from what the daily averages would be. 

	Three Months Ended March 31,
	2014							2013
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars in thousands)
Interest-earning assets:
Investment securities	$	43,010	$	236		2.19	%	$	55,851	$	388		2.78	%
Loans receivable		224,019		2,969		5.30			201,100		2,880		5.73
Interest-earning deposits		2,940		2		0.26			6,352		2		0.12
Total interest-earning assets		269,969		3,207		4.75			263,303		3,270		4.97
Non-interest-earning assets		22,069							15,781
Total assets	$	292,038						$	279,084
Interest-bearing liabilities:
Savings accounts		11,603		6		0.19			7,948		4		0.22
NOW accounts		26,941		57		0.85			21,776		42		0.77
Money market accounts		45,230		35		0.31			38,533		35		0.37
Certificate accounts		113,963		424		1.49			110,439		462		1.67
Total deposits		197,737		522		1.06			178,696		543		1.22
FHLB advances		17,357		37		0.85			33,567		77		0.91
Total interest-bearing liabilities		215,094		559		1.04	%		212,263		620		1.17	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		32,816							23,258
Other liabilities		907							879
Total liabilities		248,817							236,400
Total Stockholders’ Equity(1)		43,221							42,684
Total liabilities and equity	$	292,038						$	279,084
Net interest-earning assets	$	54,875						$	51,040
Net interest income; average interest rate spread(2)			$	2,648		3.71	%			$	2,650		3.80	%
Net interest margin(3)						3.92	%						4.03	%
Average interest-earning assets to average   interest-bearing liabilities						125.51	%						124.05	%

_____________________

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

(2)           Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average

                rate on interest-bearing liabilities.

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

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2014 and 2013 (continued)

	Nine Months Ended March 31,
	2014							2013
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Investment securities	$	48,080	$	784		2.17	%	$	60,601	$	1,334		2.94	%
Loans receivable		218,796		8,979		5.47			193,450		8,564		5.90
Interest-earning deposits		5,072		10		0.25			5,917		10		0.22
Total interest-earning assets		271,948		9,773		4.79			259,968		9,908		5.08
Non-interest-earning assets		20,336							15,647
Total assets	$	292,284						$	275,615
Interest-bearing liabilities:
Savings accounts		10,851		17		0.21			7,140		14		0.26
NOW accounts		26,445		194		0.98			19,719		118		0.80
Money market accounts		43,617		114		0.35			40,363		131		0.43
Certificate accounts		114,022		1,328		1.55			108,357		1,430		1.76
Total deposits		194,935		1,653		1.13			175,579		1,693		1.29
Other bank borrowings		333		14		5.70			--		--		--
FHLB advances		19,060		125		0.88			28,773		267		1.24
Total interest-bearing liabilities		214,328		1,792		1.11	%		204,352		1,960		1.28	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		32,898							23,691
Other liabilities		1,304							1,352
Total liabilities		248,530							229,395
Total Stockholders’ Equity(1)		43,754							46,220
Total liabilities and equity	$	292,284						$	275,615
Net interest-earning assets	$	57,620						$	55,616
Net interest income; average interest rate spread(2)			$	7,981		3.68	%			$	7,948		3.80	%
Net interest margin(3)						3.91	%						4.08	%
Average interest-earning assets to average   interest-bearing liabilities						126.88	%						127.22	%

 __________________

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

(2) Interest rate spread represents the difference between the weighted-average yield on interest-earning assets and the weighted-average rate on interest-bearing liabilities.

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

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2014 and 2013 (continued)

Liquidity and Capital Resources

Home Federal Bank maintains levels of liquid assets deemed adequate by management.  The Bank adjusts its liquidity levels to fund deposit outflows, repay its borrowings and to fund loan commitments.  Home Federal Bank also adjusts liquidity as appropriate to meet asset and liability management objectives.

Home Federal Bank’s primary sources of funds are deposits, amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, loan sales and earnings and funds provided from operations.  While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions and competition.  The Bank sets the interest rates on its deposits to maintain a desired level of total deposits.  In addition, Home Federal Bank invests excess funds in short-term interest-earning accounts and other assets, which provide liquidity to meet lending requirements.  Home Federal Bank’s deposit accounts with the Federal Home Loan Bank of Dallas amounted to $123,000 at March 31, 2014.

A significant portion of Home Federal Bank’s liquidity consists of securities classified as available-for-sale and cash and cash equivalents.   Home Federal Bank’s primary sources of cash are net income, principal repayments on loans and mortgage-backed securities and increases in deposit accounts.  If Home Federal Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas which provides an additional source of funds.  At March 31, 2014, Home Federal Bank had $17.5 million in advances from the Federal Home Loan Bank of Dallas and had $105.9 million in additional borrowing capacity.  Additionally, at March 31, 2014, 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 $16.7 million. There were no amounts purchased under this agreement as of March 31, 2014.

At March 31, 2014, Home Federal Bank had outstanding loan commitments of $24.9 million to originate loans.  At March 31, 2014, certificates of deposit scheduled to mature in less than one year totaled $49.0 million.Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal in a rising interest rate environment.  Home Federal Bank intends to utilize its high levels of liquidity to fund its lending activities.  If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale as needed.

Home Federal Bank is required to maintain regulatory capital sufficient to meet tangible, core and risk-based capital ratios of at least 1.5%, 3.0% and 8.0%, respectively.  At March 31, 2014, Home Federal Bank exceeded each of its capital requirements with ratios of 14.22%, 14.22% and 23.27%, respectively.

Off-Balance Sheet Arrangements

At March 31, 2014, the Company did not have any off-balance sheet arrangements, as defined by Securities and Exchange Commission rules.

Impact of Inflation and Changing Prices

The financial statements and related financial data presented herein have been prepared in accordance with instructions to Form 10-Q, which require the measurement of financial position and operating results in terms of historical dollars, without considering changes in relative purchasing power over time due to inflation.

Unlike most industrial companies, virtually all of the Company’s assets and liabilities are monetary in nature.  As a result, interest rates generally have a more significant impact on a financial institution’s performance than does the effect of inflation.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

Forward-Looking Statements

This Form 10-Q contains certain forward-looking statements and information relating to the Company that are based on the beliefs of management as well as assumptions made by and information currently available to management.  In addition, in those and other portions of this document, the words “anticipate,” “believe,” “estimate,” “except,” “intend,” “should” and similar expressions, or the negative thereof, as they relate to the Company or the Company’s management, are intended to identify forward-looking statements.  Such statements reflect the current views of the Company with respect to future looking events and are subject to certain risks, uncertainties and assumptions.  Should one or more of these risks or uncertainties materialize or should underlying assumptions prove incorrect, actual results may vary from those described herein as anticipated, believed, estimated, expected or intended.  The Company does not intend to update these forward-looking statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 3.                      QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4.                      CONTROLS AND PROCEDURES

Evaluation of Disclosures Controls and Procedures.   Under the supervision and with the participation of our management, including our Chief Executive Officer and our President and Chief Operating Officer (together, the co-principal executive officers) and our Executive Vice President and Chief Financial Officer (principal financial officer), we evaluated the effectiveness of the design and operation of our disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934) as of the end of the period covered by this report. Based upon that evaluation, the Chief Executive Officer, the President and Chief Operating Officer and the Executive Vice President and Chief Financial Officer have concluded that, as of the end of the period covered by this report, our disclosure controls and procedures are effective to ensure that information required to be disclosed in the reports that the Company files or submits under the Securities Exchange Act of 1934, is recorded, processed, summarized and reported within the applicable time periods specified by the Securities and Exchange Commission’s rules and forms.

Changes in Internal Control over Financial Reporting.  There has been no change in the Company’s internal control over financial reporting during the Company’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Company’s internal control over financial reporting.

PART II

ITEM 1.                      LEGAL PROCEEDINGS

The Company is not involved in any pending legal proceedings other than routine legal proceedings occurring in the ordinary course of business, which involve amounts in the aggregate believed by management to be immaterial to the financial condition of the Company.

ITEM 1A.                      RISK FACTORS

Not applicable.

ITEM 2.                      UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS

(a) Not applicable.

(b) Not applicable.

(c) Purchases of Equity Securities

The Company’s repurchases of its common stock made during the quarter ended March 31, 2014 are set forth in the table below:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (a)(b)
January 1, 2014 – January 31, 2014		6,957	$	17.64		6,957		117,498
February 1, 2014– February 28, 2014		389		17.85		389		117,109
March 1, 2014– March 31, 2014		--		--		--		117,109
Total		7,346	$	17.65		7,346		117,109

______________

Notes to this table:

(a) On January 24, 2013, the Company announced by press release a repurchase program to repurchase up to 120,000 shares, or approximately 5.0% of the Company’s outstanding shares of common stock. The repurchase program does not have an expiration date.

(b) On January 28, 2014, the Company announced by press release a repurchase program to repurchase up to 115,000 shares, or approximately 5.0% of the Company’s outstanding shares of common stock. The repurchase program does not have an expiration date.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 3.                      DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.                      MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.                      OTHER INFORMATION

Not applicable.

ITEM 6.                      EXHIBITS

The following Exhibits are filed as part of this report:

No.		Description
	31.1	Rule 13a-14(a)/15d-14(a) Certification of Co-Principal Executive Officer
	31.2	Rule 13a-14(a)/15d-14(a) Certification of Co-Principal Executive Officer
	31.3	Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
	32.0	Certification Pursuant to 18 U.S.C Section 1350
	101.INS	XBRL Instance Document.
	101.SCH	XBRL Taxonomy Extension Schema Document.
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document.
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document.
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document.
	101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document.

34

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Date: May 12, 2014	By:	/s/Clyde D. Patterson
		Clyde D. Patterson
		Executive Vice President and Chief Financial Officer (Duly authorized officer and principal financial and accounting officer)

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, Daniel R. Herndon, Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 12, 2014

/s/Daniel R. Herndon

Daniel R. Herndon

Chief Executive Officer

(Co-Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

I, James R. Barlow, President and Chief Operating Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date: May 12, 2014

/s/James R. Barlow

James R. Barlow

President and Chief Operating Officer

(Co-Principal Executive Officer)

EX-31.3

EXHIBIT 31.3

CERTIFICATIONS

I, Clyde D. Patterson, Executive Vice President and Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)      Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)      Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)      Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)      Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5. The registrant's other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

(a)      All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

(b)      Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:  May 12, 2014

/s/Clyde D. Patterson

Clyde D. Patterson

Executive Vice President and Chief Financial Officer

(Principal Financial and Accounting Officer)

EX-32.0

EXHIBIT 32.0

SECTION 1350 CERTIFICATIONS

The undersigned executive officers of Home Federal Bancorp, Inc. of Louisiana (the "Registrant") hereby certify that the Registrant's Form 10-Q for the quarter ended March 31, 2014 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: May 12, 2014		/s/Daniel R. Herndon
	Name:	Daniel R. Herndon
	Title:	Chief Executive Officer (Co-Principal Executive Officer)

Date: May 12, 2014		/s/James R. Barlow
	Name:	James R. Barlow
	Title:	President and Chief Operating Officer (Co-Principal Executive Officer)

Date: May 12, 2014		/s/Clyde D. Patterson
	Name:	Clyde D. Patterson
	Title:	Executive Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to Home Federal Bancorp, Inc. of Louisiana and will be retained by Home Federal Bancorp, Inc. of Louisiana and furnished to the Securities and Exchange Commission or its staff upon request.

XML

Related Party Transactions (Details) (USD $)	Mar. 31, 2014	Jun. 30, 2013
Related Party Transactions [Abstract]
Loan made to directors and executive officers	$ 2,470,430	$ 1,400,000

XML

Loans Receivable (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Loan receivable [Abstract]
Gross Loans Receivable	$ 221,385	$ 198,807	$ 208,585
Less: Allowance for Loan Losses	(2,346)	(2,124)
Unamortized Loan Fees	(308)		(266)
Net Loans Receivable	218,731		206,079
Summary of changes in the allowance for loan losses [Roll Forward]
Balance - Beginning of Period	2,240	1,698
Provision for Loan Losses	118	441
Loan Charge-Offs	(12)	(15)
Balance - End of Period	2,346	2,124
Mortgage Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	198,683		191,422
Commercial Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	22,242		16,776
Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	460		387
One-to-Four Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	82,315		73,243
Commercial [Member]
Loan receivable [Abstract]
Gross Loans Receivable	49,834	51,450	51,169
Multi-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	19,587	19,976	19,587
Land [Member]
Loan receivable [Abstract]
Gross Loans Receivable	17,577	15,899	15,589
Construction [Member]
Loan receivable [Abstract]
Gross Loans Receivable	13,464	15,298	16,937
Equity and Second Mortgage [Member]
Loan receivable [Abstract]
Gross Loans Receivable	2,538		2,305
Equity Lines of Credit [Member]
Loan receivable [Abstract]
Gross Loans Receivable	13,368		12,592
Loans on Savings Accounts [Member]
Loan receivable [Abstract]
Gross Loans Receivable	350		259
Automobile and Other Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	110		128
Other Loans Secured by Real Estate [Member]
Loan receivable [Abstract]
Gross Loans Receivable	$ 15,906	$ 12,828	$ 14,897

XML

Summary of Accounting Policies

9 Months Ended

Mar. 31, 2014

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies

1.           Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2014, are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2014.

The Company follows accounting standards set by the Financial Accounting Standards Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations and cash flows.  References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2014.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses.

Nature of Operations

Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank located in Shreveport, Louisiana.  The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.  The Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by four full-service banking offices and one agency office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2014, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a significant amount of business.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral and prevailing economic conditions.  The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of expected future cash flows or the fair value of the collateral of the loan.  If the present value of expected future cash flows or fair value of the collateral is less than the recorded investment in the loan, the Bank will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.

An allowance is also established for uncollectible interest on loans classified as substandard.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.

It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb possible losses in the existing loan portfolio.

Off-Balance Sheet Credit Related Financial Instruments

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

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.

Premises and Equipment

Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

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Loans Receivable, Loans Individually Evaluated for Impairment (Details) (USD $)	9 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	$ 912,000		$ 5,707,000
Recorded Investment With No Allowance	912,000		5,707,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	912,000		5,707,000
Related Allowance	0		0
Average Recorded Investment	947,000		5,451,000
Loan receivables on non-accrual loans	98,000		413,000
Estimated gross interest income	2,700	13,000
Real Estate Loans - One-to-Four Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	467,000		648,000
Recorded Investment With No Allowance	467,000		648,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	467,000		648,000
Related Allowance	0		0
Average Recorded Investment	487,000		650,000
Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	329,000		1,712,000
Recorded Investment With No Allowance	329,000		1,712,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	329,000		1,712,000
Related Allowance	0		0
Average Recorded Investment	344,000		1,151,000
Multi-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		0
Average Recorded Investment	0		0
Land [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		0
Average Recorded Investment	0		0
Construction [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		0
Average Recorded Investment	0		0
Equity and Second Mortgage [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		0
Average Recorded Investment	0		0
Equity Lines of Credit [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	116,000		116,000
Recorded Investment With No Allowance	116,000		116,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	116,000		116,000
Related Allowance	0		0
Average Recorded Investment	116,000		116,000
Commercial Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0		3,231,000
Recorded Investment With No Allowance	0		3,231,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		3,231,000
Related Allowance	0		0
Average Recorded Investment	0		3,534,000
Consumer Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0		0
Recorded Investment With No Allowance	0		0
Recorded Investment With Allowance	0		0
Total Recorded Investment	0		0
Related Allowance	0		0
Average Recorded Investment	$ 0		$ 0

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Loans Receivable, Allowance for Loan Losses and Recorded Investment in Loans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013	Jun. 30, 2013
Allowance for loan losses [Abstract]
Beginning Balances			$ 2,240	$ 1,698	$ 1,698
Charge-Offs			(12)	(15)	(16)
Recoveries			0	0	0
Current Provision	30	214	118	441	558
Ending Balances	2,346	2,124	2,346	2,124	2,240
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	2,346	2,124	2,346	2,124	2,240
Loans Receivable [Abstract]
Ending Balances - Total	221,385	198,807	221,385	198,807	208,585
Evaluated for Impairment, Ending Balances [Abstract]
Individually	912	5,560	912	5,560	5,707
Collectively	220,473	193,247	220,473	193,247	202,878
Real Estate Loans - 1-4 Family Residential [Member]
Allowance for loan losses [Abstract]
Beginning Balances			1,023	306	306
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			187	610	717
Ending Balances	1,210	916	1,210	916	1,023
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	1,210	916	1,210	916	1,023
Loans Receivable [Abstract]
Ending Balances - Total	82,315	67,352	82,315	67,352	73,243
Evaluated for Impairment, Ending Balances [Abstract]
Individually	467	768	467	768	648
Collectively	81,848	66,584	81,848	66,584	72,595
Real Estate Loans - Commercial [Member]
Allowance for loan losses [Abstract]
Beginning Balances			338	185	185
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			48	149	153
Ending Balances	386	334	386	334	338
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	386	334	386	334	338
Loans Receivable [Abstract]
Ending Balances - Total	49,834	51,450	49,834	51,450	51,169
Evaluated for Impairment, Ending Balances [Abstract]
Individually	329	972	329	972	1,712
Collectively	49,505	50,478	49,505	50,478	49,457
Real Estate Loans - Multi Family [Member]
Allowance for loan losses [Abstract]
Beginning Balances			103	205	205
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(12)	(110)	(102)
Ending Balances	91	95	91	95	103
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	91	95	91	95	103
Loans Receivable [Abstract]
Ending Balances - Total	19,587	19,976	19,587	19,976	19,587
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	19,587	19,976	19,587	19,976	19,587
Real Estate Loans - Land [Member]
Allowance for loan losses [Abstract]
Beginning Balances			127	270	270
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			33	(138)	(143)
Ending Balances	160	132	160	132	127
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	160	132	160	132	127
Loans Receivable [Abstract]
Ending Balances - Total	17,577	15,899	17,577	15,899	15,589
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	17,577	15,899	17,577	15,899	15,589
Real Estate Loans - Construction [Member]
Allowance for loan losses [Abstract]
Beginning Balances			146	311	311
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(23)	(150)	(165)
Ending Balances	123	161	123	161	146
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	123	161	123	161	146
Loans Receivable [Abstract]
Ending Balances - Total	13,464	15,298	13,464	15,298	16,937
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	13,464	15,298	13,464	15,298	16,937
Real Estate Loans - Home Equity Loans and Lines of Credit [Member]
Allowance for loan losses [Abstract]
Beginning Balances			85	110	110
Charge-Offs			0	(15)	(16)
Recoveries			0	0	0
Current Provision			3	(10)	(9)
Ending Balances	88	85	88	85	85
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	88	85	88	85	85
Loans Receivable [Abstract]
Ending Balances - Total	15,906	12,828	15,906	12,828	14,897
Evaluated for Impairment, Ending Balances [Abstract]
Individually	116	116	116	116	116
Collectively	15,790	12,712	15,790	12,712	14,781
Commercial Loans [Member]
Allowance for loan losses [Abstract]
Beginning Balances			412	281	281
Charge-Offs			(12)	0	0
Recoveries			0	0	0
Current Provision			(122)	114	131
Ending Balances	278	395	278	395	412
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	278	395	278	395	412
Loans Receivable [Abstract]
Ending Balances - Total	22,242	15,600	22,242	15,600	16,776
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	3,704	0	3,704	3,231
Collectively	22,242	11,896	22,242	11,896	13,545
Consumer Loans [Member]
Allowance for loan losses [Abstract]
Beginning Balances			6	30	30
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			4	(24)	(24)
Ending Balances	10	6	10	6	6
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	10	6	10	6	6
Loans Receivable [Abstract]
Ending Balances - Total	460	404	460	404	387
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	$ 460	$ 404	$ 460	$ 404	$ 387

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Deposits (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Amount [Abstract]
Non-Interest Bearing	$ 32,476	$ 26,027
NOW Accounts	26,977	24,625
Money Markets	43,703	39,482
Passbook Savings	11,846	9,524
Deposits in transaction accounts	115,002	99,658
Certificates of Deposit	114,244	112,264
Total Deposits	$ 229,246	$ 211,922

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Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
Calculation of earnings per share [Abstract]
Net income	$ 638	$ 676	$ 1,996	$ 2,495
Weighted average shares outstanding - basic (in shares)	2,030,000	2,180,000	2,081,000	2,400,000
Effect of dilutive common stock equivalents (in shares)	52,000	67,000	50,000	68,000
Adjusted weighted average shares outstanding- diluted (in shares)	2,082,000	2,247,000	2,131,000	2,468,000
Basic earnings per share (in dollars per share)	$ 0.31	$ 0.31	$ 0.96	$ 1.04
Diluted earnings per share (in dollars per share)	$ 0.31	$ 0.30	$ 0.94	$ 1.01
Outstanding options to purchase shares (in shares)	236,935	275,162	243,964	294,533
Per share price of outstanding options (in dollars per share)	$ 13.90	$ 13.25	$ 13.85	$ 13.20
Components of average outstanding common shares [Abstract]
Average common shares issued (in shares)	3,062,000	3,062,000	3,062,000	3,062,000
Average unearned ESOP shares (in shares)	(160,000)	(171,000)	(163,000)	(174,000)
Average unearned RRP shares (in shares)	(55,000)	(69,000)	(61,000)	(75,000)
Average treasury shares (in shares)	(817,000)	(642,000)	(757,000)	(413,000)

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 1,996	$ 2,495
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities
Net Amortization and Accretion on Securities	50	13
Gain on Sale of Securities	(35)	(215)
Gain on Sale of Loans	(1,240)	(1,991)
Amortization of Deferred Loan Fees	(65)	(197)
Depreciation of Premises and Equipment	223	156
ESOP Expense	151	149
Stock Option Expense	122	125
Recognition and Retention Plan Expense	157	157
Deferred Income Tax	(5)	(120)
Provision for Loan Losses	118	441
Increase in Cash Surrender Value on Bank Owned Life Insurance	(131)	(141)
Gain on Sale of Real Estate	(129)	0
Changes in Assets and Liabilities:
Loans Held-for-Sale - Originations	(49,753)	(84,719)
Loans Held-for-Sale - Sale and Principal Repayments	47,661	93,693
Accrued Interest Receivable	(140)	37
Other Operating Assets	(78)	329
Other Operating Liabilities	(93)	(623)
Net Cash (Used In) Provided by Operating Activities	(1,191)	9,589
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections	(12,812)	(28,480)
Deferred Loan Fees Collected	108	81
Acquisition of Premises and Equipment	(1,914)	(1,270)
Proceeds from Sale of Real Estate	566	0
Activity in Available-for-Sale Securities:
Proceeds from Sales of Securities	13,019	34,638
Principal Payments on Mortgage-Backed Securities	8,029	11,282
Purchases of Securities	(13,292)	(31,515)
Activity in Held-to-Maturity Securities:
Redemption Proceeds	488	107
Purchases of Securities	(136)	(646)
Net Cash Used in Investing Activities	(5,944)	(15,803)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase (Decrease) in Deposits	17,324	(18,368)
Proceeds from Federal Home Loan Bank Advances	401,850	162,400
Repayments of Advances from Federal Home Loan Bank	(406,057)	(156,123)
Net Decrease in Advances from Borrowers for Taxes and Insurance	(55)	(40)
Dividends Paid	(417)	(492)
Acquisition of Treasury Stock	(2,113)	(10,085)
Proceeds from Stock Options Exercised	67	583
Proceeds from other Bank Borrowings	300	1,500
Repayment of Other Bank Borrowings	(800)	(1,000)
Net Cash Provided by (Used In) Financing Activities	10,099	(21,625)
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS	2,964	(27,839)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	3,685	34,863
CASH AND CASH EQUIVALENTS - END OF PERIOD	6,649	7,024
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	1,797	1,979
Income Taxes Paid	884	1,353
Market Value Adjustment for Loss on Securities Available-for-Sale	$ (95)	$ (909)

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Stock-Based Compensation (Details) (USD $)	9 Months Ended
	Mar. 31, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Expected Term	10 years
Incentive stock options and non-qualified stock options, vested and exercisable (in hundredths)	20.00%
Period of incentive stock options and non-qualified stock options, vested and exercisable	5 years
Commencement period of incentive and non-qualified options	1 year
Additional percentage vested on each successive anniversary (in hundredths)	20.00%
2005 Recognition and Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	63,547
Number of released vested shares (in shares)	561
Remaining shares under the plan (in shares)	1,125
2011 Recognition and Retention Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	77,808
Remaining shares under the plan (in shares)	50,124
Recognition Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Shares earned by recipients expressed in percentage of aggregate number of shares (in hundredths)	20.00%
Period of plan	5 years
Period of cost recognized	5 years
Compensation expense	$ 157,000
2005 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	2,133
Aggregate number of shares of common stock reserved for issuance (in shares)	158,868
Outstanding stock options under the plan (in shares)	49,041
2011 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)	28,400
Aggregate number of shares of common stock reserved for issuance (in shares)	194,522
Outstanding stock options under the plan (in shares)	169,234
Options exercised (in shares)	3,516
Options forfeited (in shares)	3,112

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $123 and $1,028 for March 31, 2014 and June 30, 2013, Respectively)	$ 6,649	$ 3,685
Securities Available-for-Sale	40,094	47,961
Securities Held-to-Maturity	1,113	1,465
Loans Held-for-Sale	6,795	3,464
Loans Receivable, Net of Allowance for Loan Losses of $2,346 and $2,240, Respectively	218,731	206,079
Accrued Interest Receivable	914	774
Premises and Equipment, Net	7,814	6,559
Bank Owned Life Insurance	6,161	6,030
Deferred Tax Asset	813	775
Other Assets	440	363
Total Assets	289,524	277,155
LIABILITIES
Deposits	229,246	211,922
Advances from Borrowers for Taxes and Insurance	222	277
Advances from Federal Home Loan Bank of Dallas	17,454	21,662
Other Bank Borrowings	0	500
Other Accrued Expenses and Liabilities	623	812
Total Liabilities	247,545	235,173
STOCKHOLDERS' EQUITY
Preferred Stock - 10,000,000 Shares $.01 Par Value Authorized; None Issued and Outstanding	0	0
Common Stock - 40,000,000 Shares of $.01 Par Value Authorized; 3,062,386 Shares Issued and 2,243,047 Shares Outstanding at March 31, 2014; 2,351,950 Shares Outstanding at June 30, 2013	34	32
Additional Paid-in Capital	32,675	32,218
Treasury Stock, at Cost - 819,339 shares at March 31, 2014; 710,436 at June 30, 2013	(15,486)	(13,168)
Unearned ESOP Stock	(1,590)	(1,676)
Unearned RRP Trust Stock	(609)	(863)
Retained Earnings	26,974	25,395
Accumulated Other Comprehensive (Loss) Income	(19)	44
Total Stockholders' Equity	41,979	41,982
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 289,524	$ 277,155

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Tax on unrealized holding gain (loss) on securities available-for-sale	$ 28	$ 121	$ 27	$ 240
Tax on reclassification adjustment gain included in Net Income	$ 0	$ 7	$ 5	$ 69

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Fair Value Disclosures, Recurring (Details) (Recurring [Member], USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
Available for sale debt securities [Abstract]
FHLMC Mortgage-Backed Certificates	$ 338	$ 416
FNMA Mortgage-Backed Certificates	16,064	11,960
GNMA Mortgage-Backed Certificates	23,692	35,585
Available-for-Sale Securities	40,094	47,961
Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage-Backed Certificates	0	0
FNMA Mortgage-Backed Certificates	0	0
GNMA Mortgage-Backed Certificates	0	0
Available-for-Sale Securities	0	0
Significant Other Observable Inputs (Level 2) [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage-Backed Certificates	338	416
FNMA Mortgage-Backed Certificates	16,064	11,960
GNMA Mortgage-Backed Certificates	23,692	35,585
Available-for-Sale Securities	$ 40,094	$ 47,961

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Fair Value Disclosures (Tables)

9 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Carrying amount and estimated fair values of financial instruments

The carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2014				June 30, 2013
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	6,649	$	6,649	$	3,685	$	3,685
Securities Available-for-Sale		40,094		40,094		47,961		47,961
Securities to be Held-to-Maturity		1,113		1,113		1,465		1,465
Loans Held-for-Sale		6,795		6,795		3,464		3,464
Loans Receivable		218,731		221,859		206,079		206,055
Financial Liabilities
Deposits		229,246		226,770		211,922		211,130
Advances from FHLB		17,454		17,770		21,662		22,045
Off-Balance Sheet Items
Mortgage Loan Commitments		249		249		291		291

Fair values of assets and liabilities measured on a recurring basis

Fair values of assets and liabilities measured on a recurring basis at March 31, 2014 and June 30, 2013 are as follows:

	Fair Value Measurements Using:
March 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	338	$	338
FNMA Mortgage-Backed Certificates		--		16,064		16,064
GNMA Mortgage-Backed Certificates		--		23,692		23,692
Total	$	--	$	40,094	$	40,094

	Fair Value Measurements Using:
June 30, 2013	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	416	$	416
FNMA Mortgage-Backed Certificates		--		11,960		11,960
GNMA Mortgage-Backed Certificates		--		35,585		35,585
Total	$	--	$	47,961	$	47,961

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Securities (Details) (USD $)	9 Months Ended
	Mar. 31, 2014	Jun. 30, 2013
Securities Available-for-Sale [Abstract]
Amortized Cost	$ 40,123,000	$ 47,894,000
Gross Unrealized Gains	721,000	804,000
Gross Unrealized Losses	750,000	737,000
Available-for-Sale Securities	40,094,000	47,961,000
Securities Held-to-Maturity [Abstract]
Amortized Cost	1,113,000	1,465,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,113,000	1,465,000
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	3,000
One through Five Years	282,000
After Five through Ten Years	184,000
Over Ten Years	39,654,000
Total	40,123,000
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	3,000
One through Five Years	290,000
After Five through Ten Years	189,000
Over Ten Years	39,612,000
Total	40,094,000
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
Total	0
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
Total	0
Proceeds from sale of securities available-for-sale	13,000,000
Gross realized gains	35,000
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	101,000	737,000
Over Twelve Months	649,000	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	1,879,000	27,875,000
Over Twelve Months	23,550,000	0
Public deposits [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	10,500,000
FHLB advances [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	100,100,000
Available-for-Sale Debt Securities [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	40,123,000	47,894,000
Gross Unrealized Gains	721,000	804,000
Gross Unrealized Losses	750,000	737,000
Available-for-Sale Securities	40,094,000	47,961,000
Available-for-Sale Debt Securities [Member] | FHLMC Mortgage-Backed Certificates [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	325,000	397,000
Gross Unrealized Gains	13,000	19,000
Gross Unrealized Losses	0	0
Available-for-Sale Securities	338,000	416,000
Available-for-Sale Debt Securities [Member] | FNMA Mortgage-Backed Certificates [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	15,464,000	11,185,000
Gross Unrealized Gains	701,000	775,000
Gross Unrealized Losses	101,000	0
Available-for-Sale Securities	16,064,000	11,960,000
Available-for-Sale Debt Securities [Member] | GNMA Mortgage-Backed Certificates [Member]
Securities Available-for-Sale [Abstract]
Amortized Cost	24,334,000	36,312,000
Gross Unrealized Gains	7,000	10,000
Gross Unrealized Losses	649,000	737,000
Available-for-Sale Securities	23,692,000	35,585,000
Available-for-Sale Debt Securities [Member] | Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	101,000	737,000
Over Twelve Months	649,000	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	1,879,000	27,875,000
Over Twelve Months	23,550,000	0
Non-Marketable Equity Securities [Member]
Securities Held-to-Maturity [Abstract]
Amortized Cost	1,113,000	1,465,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,113,000	1,465,000
Non-Marketable Equity Securities [Member] | Federal Home Loan Bank [Member]
Securities Held-to-Maturity [Abstract]
Amortized Cost	863,000	1,215,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	863,000	1,215,000
Number of equity securities (in shares)	8,633	12,149
Non-Marketable Equity Securities [Member] | First National Bankers Bankshares, Inc. [Member]
Securities Held-to-Maturity [Abstract]
Amortized Cost	250,000	250,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 250,000	$ 250,000
Number of equity securities (in shares)	630	630

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Unaudited) (USD $) In Thousands	Common Stock [Member]	Additional Paid-In Capital [Member]	Unearned ESOP Stock [Member]	Unearned RRP Trust Stock [Member]	Retained Earnings [Member]	Treasury Stock [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning Balance at Jun. 30, 2012	$ 32	$ 31,199	$ (1,792)	$ (1,114)	$ 22,897	$ (2,706)	$ 1,372	$ 49,888
Net Income	0	0	0	0	2,495	0	0	2,495
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	0	(600)	(600)
RRP Shares Earned	0	0	0	251	0	0	0	251
Stock Options Vested	0	125	0	0	0	0	0	125
Common Stock Issuance for Stock Option Exercises	0	742	0	0	0	0	0	742
ESOP Compensation Earned	0	62	87	0	0	0	0	149
Acquisition of Treasury Stock	0	0	0	0	0	(10,244)	0	(10,244)
Dividends Declared	0	0	0	0	(492)	0	0	(492)
Ending Balance at Mar. 31, 2013	32	32,128	(1,705)	(863)	24,900	(12,950)	772	42,314
Beginning Balance at Jun. 30, 2013	32	32,218	(1,676)	(863)	25,395	(13,168)	44	41,982
Net Income	0	0	0	0	1,996	0	0	1,996
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	0	(63)	(63)
RRP Shares Earned	0	0	0	254	0	0	0	254
Stock Options Vested	0	122	0	0	0	0	0	122
Common Stock Issuance for Stock Option Exercises	2	270	0	0	0	0	0	272
ESOP Compensation Earned	0	65	86	0	0	0	0	151
Acquisition of Treasury Stock	0	0	0	0	0	(2,318)	0	(2,318)
Dividends Declared	0	0	0	0	(417)	0	0	(417)
Ending Balance at Mar. 31, 2014	$ 34	$ 32,675	$ (1,590)	$ (609)	$ 26,974	$ (15,486)	$ (19)	$ 41,979

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013
ASSETS
Interest-Bearing Deposits with Other Banks	$ 123	$ 1,028
Loans Receivable, Net of Allowance for Loan Losses	$ 2,346	$ 2,240
STOCKHOLDERS' EQUITY
Preferred Stock, authorized (in shares)	10,000,000	10,000,000
Preferred Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, issued (in shares)	0	0
Preferred Stock, outstanding (in shares)	0	0
Common Stock, authorized (in shares)	40,000,000	40,000,000
Common Stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, issued (in shares)	3,062,386	3,062,386
Common Stock, outstanding (in shares)	2,243,047	2,351,950
Treasury Stock (in shares)	819,339	710,436

XML

Summary of Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2014

Summary of Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2014, are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2014.

The Company follows accounting standards set by the Financial Accounting Standards Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations and cash flows.  References to GAAP issued by the FASB in these footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2014.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

Use of Estimates

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for loan losses.

Nature of Operations

Nature of Operations

Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank located in Shreveport, Louisiana.  The Bank is a federally chartered, stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency.  The Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by four full-service banking offices and one agency office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2014, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a significant amount of business.

Cash and Cash Equivalents

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.

Securities

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held-for-Sale

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

Loans

Loans receivable are stated at unpaid principal balances, less allowances for loan losses and unamortized deferred loan fees.  Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Allowance for Loan Losses

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectibility of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectibility of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of the underlying collateral and prevailing economic conditions.  The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of expected future cash flows or the fair value of the collateral of the loan.  If the present value of expected future cash flows or fair value of the collateral is less than the recorded investment in the loan, the Bank will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings.

An allowance is also established for uncollectible interest on loans classified as substandard.  The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received.  When, in management’s judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.

It should be understood that estimates of future loan losses involve an exercise of judgment.  While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses reflected in the accompanying statements of condition is adequate to absorb possible losses in the existing loan portfolio.

Off-Balance Sheet Credit Related Financial Instruments

Off-Balance Sheet Credit Related Financial Instruments

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

Foreclosed Assets

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held-for-sale and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure.  Cost is defined as the lower of the fair value of the property or the recorded investment in the loan.  Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.

Premises and Equipment

Premises and Equipment

Land is carried at cost.  Buildings and equipment are carried at cost less accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets.

Income Taxes

Income Taxes

The Company and its wholly-owned subsidiary file a consolidated Federal income tax return on a fiscal year basis.  Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.

The Company accounts for income taxes on the asset and liability method.  Deferred tax assets and liabilities are recorded based on the difference between the tax bases of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates.  A valuation allowance, if needed, reduces deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years.  Although realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized.  Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of taxes receivable or payable.

While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.

Comprehensive Income

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

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Document and Entity Information	9 Months Ended
	Mar. 31, 2014	May 09, 2014
Document and Entity Information [Abstract]
Entity Registrant Name	Home Federal Bancorp, Inc. of Louisiana
Entity Central Index Key	0001500375
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,238,181
Document Fiscal Year Focus	2014
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2014

XML

Securities (Tables)

9 Months Ended

Mar. 31, 2014

Securities [Abstract ]

Amortized cost and fair value of securities, with gross unrealized gains and losses

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	March 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	325	$	13	$	--	$	338
FNMA Mortgage-Backed Certificates		15,464		701		101		16,064
GNMA Mortgage-Backed Certificates		24,334		7		649		23,692
Total Debt Securities		40,123		721		750		40,094
Total Securities Available-for-Sale	$	40,123	$	721	$	750	$	40,094
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
8,633 Shares – Federal Home Loan Bank	$	863	$	--	$	--	$	863
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,113		--		--		1,113
Total Securities Held-to-Maturity	$	$1,113	$	--	$	--	$	1,113

	June 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	397	$	19	$	--	$	416
FNMA Mortgage-Backed Certificates		11,185		775		--		11,960
GNMA Mortgage-Backed Certificates		36,312		10		737		35,585
Total Debt Securities		47,894		804		737		47,961
Total Securities Available-for-Sale	$	47,894	$	804	$	737	$	47,961
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
12,149 Shares – Federal Home Loan Bank	$	1,215	$	--	$	--	$	1,215
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,465		--		--		1,465
Total Securities Held-to-Maturity	$	1,465	$	--	$	--	$	1,465

Amortized cost and fair value of debt securities by contractual maturity

The amortized cost and fair value of debt securities by contractual maturity at March 31, 2014, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Within One Year or Less	$	3	$	3	$	--	$	--
One through Five Years		282		290		--		--
After Five through Ten Years		184		189		--		--
Over Ten Years		39,654		39,612		--		--
Total	$	40,123	$	40,094	$	--	$	--

Information pertaining to securities with gross unrealized losses, continuous loss position

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2014 and June 30, 2013 aggregated by investment category and length of time that individual securities have been in a continuous loss position.  There were no unrealized losses on securities held-to-maturity at March 31, 2014 or June 30, 2013.

	March 31, 2014
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale:
Debt Securities
Mortgage-Backed Securities	$	101	$	1,879	$	649	$	23,550
Total Securities Available-for-Sale	$	101	$	1,879	$	649	$	23,550

	June 30, 2013
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	737	$	27,875	$	--	$	--
Total Securities Available-for-Sale	$	737	$	27,875	$	--	$	--

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
INTEREST INCOME
Loans, Including Fees	$ 2,968	$ 2,880	$ 8,979	$ 8,564
Investment Securities	1	5	4	20
Mortgage-Backed Securities	235	383	780	1,314
Other Interest-Earning Assets	2	2	10	10
Total Interest Income	3,206	3,270	9,773	9,908
INTEREST EXPENSE
Deposits	522	543	1,652	1,693
Federal Home Loan Bank Borrowings	37	1	125	4
Other Bank Borrowings	0	76	14	263
Total Interest Expense	559	620	1,791	1,960
Net Interest Income	2,647	2,650	7,982	7,948
PROVISION FOR LOAN LOSSES	30	214	118	441
Net Interest Income after Provision for Loan Losses	2,617	2,436	7,864	7,507
NON-INTEREST INCOME
Gain on Sale of Real Estate	129	0	129	0
Gain on Sale of Loans	360	655	1,240	1,992
Gain on Sale of Securities	1	0	35	215
Income on Bank Owned Life Insurance	43	44	131	141
Other Income	94	71	264	273
Total Non-Interest Income	627	770	1,799	2,621
NON-INTEREST EXPENSE
Compensation and Benefits	1,474	1,403	4,204	4,068
Occupancy and Equipment	202	148	634	540
Data Processing	152	126	353	313
Audit and Examination Fees	57	52	163	158
Franchise and Bank Shares Tax	85	84	263	224
Advertising	62	61	195	181
Legal Fees	82	151	320	398
Loan and Collection	28	25	92	87
Deposit Insurance Premiums	39	32	107	95
Other Expenses	123	125	381	338
Total Non-Interest Expense	2,304	2,207	6,712	6,402
Income Before Income Taxes	940	999	2,951	3,726
PROVISION FOR INCOME TAX EXPENSE	302	323	955	1,231
Net Income	$ 638	$ 676	$ 1,996	$ 2,495
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.31	$ 0.31	$ 0.96	$ 1.04
Diluted (in dollars per share)	$ 0.31	$ 0.30	$ 0.94	$ 1.01
DIVIDENDS DECLARED (in dollars per share)	$ 0.06	$ 0.06	$ 0.18	$ 0.18

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Deposits

9 Months Ended

Mar. 31, 2014

Deposits [Abstract]

Deposits

4.           Deposits

Deposits at March 31, 2014 and June 30, 2013 consist of the following classifications:

	March 31, 2014		June 30, 2013
	(In Thousands)
Non-Interest Bearing	$	32,476	$	26,027
NOW Accounts		26,977		24,625
Money Markets		43,703		39,482
Passbook Savings		11,846		9,524
		115,002		99,658
Certificates of Deposit		114,244		112,264
Total Deposits	$	229,246	$	211,922

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Loans Receivable

9 Months Ended

Mar. 31, 2014

Loans Receivable [Abstract]

Loans Receivable

3.           Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2014			June 30, 2013
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One- to Four-Family Residential	$	82,315		$	73,243
Commercial		49,834			51,169
Multi-Family Residential		19,587			19,587
Land		17,577			15,589
Construction		13,464			16,937
Equity and Second Mortgage		2,538			2,305
Equity Lines of Credit		13,368			12,592
Total Mortgage Loans		198,683			191,422
Commercial Loans		22,242			16,776
Consumer Loans
Loans on Savings Accounts		350			259
Automobile and Other Consumer Loans		110			128
Total Consumer and Other Loans		460			387
Total Loans		221,385			208,585
Less:  Allowance for Loan Losses		(2,346	)		(2,240	)
Unamortized Loan Fees		(308	)		(266	)
Net Loans Receivable	$	218,731		$	206,079

Following is a summary of changes in the allowance for loan losses:

	Nine Months Ended March 31,
	2014			2013
	(In Thousands)
Balance - Beginning of Period	$	2,240		$	1,698
Provision for Loan Losses		118			441
Loan Charge-Offs		(12	)		(15	)
Balance - End of Period	$	2,346		$	2,124

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans according to credit risk.  Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.

Loans excluded from the scope of the quarterly review process above are generally identified as pass credits until:  (a) they become past due; (b) management becomes aware of deterioration in the credit worthiness of the borrower; or (c) the customer contacts the Company for a modification.  In these circumstances, the loan is specifically evaluated for potential classification and the need to allocate reserves or charge-off.  The Company uses the following definitions for risk ratings:

Special Mention - Loans identified as special mention have a potential weakness that deserves management’s close attention.  If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s credit position at some future date.

Substandard - Loans classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any.  Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt.  They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loss - This classification includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted.  Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off these basically worthless loans.  Accordingly, these loans are charged-off before period end.

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

			Special
March 31, 2014	Pass		Mention		Substandard		Doubtful		Total
			(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	81,848	$	396	$	71	$	--	$	82,315
Commercial		49,505		329		--		--		49,834
Multi-Family Residential		19,587		--		--		--		19,587
Land		17,577		--		--		--		17,577
Construction		13,464		--		--		--		13,464
Equity and Second Mortgage		2,538		--		--		--		2,538
Equity Lines of Credit		13,252		89		--		27		13,368
Commercial Loans		22,242		--		--		--		22,242
Consumer Loans		460		--		--		--		460
Total	$	220,473	$	814	$	71	$	27	$	221,385

June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	72,595	$	313	$	335	$	--	$	73,243
Commercial		49,457		--		1,712		--		51,169
Multi-Family Residential		19,587		--		--		--		19,587
Land		15,589		--		--		--		15,589
Construction		16,937		--		--		--		16,937
Equity and Second Mortgage		2,305		--		--		--		2,305
Equity Lines of Credit		12,476		89		--		27		12,592
Commercial Loans		13,545		--		3,231		--		16,776
Consumer Loans		387		--		--		--		387
Total	$	202,878	$	402	$	5,278	$	27	$	208,585

Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when contractually due.  Loans that experience insignificant payment delays or payment shortfalls are generally not classified as impaired.  On a case-by-case basis, management determines the significance of payment delays and payment shortfalls, taking into consideration all of the circumstances related to the loan, including:  the length of the payment delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

The following tables present an aging analysis of past due loans, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

													Recorded
													Investment
			60-89		Greater						Total		>90 Days
	30-59 Days		Days Past		Than 90		Total				Loans		and
March 31, 2014	Past Due		Due		Days		Past Due		Current		Receivable		Accruing
					(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	151	$	89	$	267	$	507	$	81,808	$	82,315	$	196
Commercial		--		--		--		--		49,834		49,834		--
Multi-Family Residential		--		--		--		--		19,587		19,587		--
Land		--		--		--		--		17,577		17,577		--
Construction		--		--		--		--		13,464		13,464		--
Equity and Second Mortgage		--		--		--		--		2,538		2,538		--
Equity Lines of Credit		60		27		--		87		13,281		13,368		--
Commercial Loans		--		--		--		--		22,242		22,242		--
Consumer Loans		--		--		--		--		460		460		--
Total	$	211	$	116	$	267	$	594	$	220,791	$	221,385	$	196

June 30, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment  > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	1,437	$	925	$	622	$	2,984	$	70,259	$	73,243	$	236
Commercial		--		--		--		--		51,169		51,169		--
Multi-Family Residential		--		--		--		--		19,587		19,587		--
Land		--		--		--		--		15,589		15,589		--
Construction		--		--		--		--		16,937		16,937		--
Equity and Second Mortgage		--		--		--		--		2,305		2,305		--
Equity Lines of Credit		--		--		27		27		12,565		12,592		--
Commercial Loans		--		--		--		--		16,776		16,776		--
Consumer Loans		--		--		--		--		387		387		--
Total	$	1,437	$	925	$	649	$	3,011	$	205,574	$	208,585	$	236

Loans, for which the terms have been modified, and for which the borrower is experiencing financial difficulties are considered troubled debt restructurings and designated as impaired.  There were no troubled debt restructurings as of March 31, 2014 or June 30, 2013.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2014 and the year ended June 30, 2013, was as follows:

	Real Estate Loans
													Home
													Equity
													Loans
	1-4 Family				Multi-								and Lines		Commercial			Consumer
March 31, 2014	Residential		Commercial		Family			Land		Construction			of Credit		Loans			Loans		Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	1,023	$	338	$	103		$	127	$	146		$	85	$	412		$	6	$	2,240
Charge-Offs		--		--		--			--		--			--		(12	)		--		(12	)
Recoveries		--		--		--			--		--			--		--			--		--
Current Provision		187		48		(12	)		33		(23	)		3		(122	)		4		118
Ending Balances	$	1,210	$	386	$	91		$	160	$	123		$	88	$	278		$	10	$	2,346
Evaluated for Impairment:
Individually		--		--		--			--		--			--		--			--		--
Collectively		1,210		386		91			160		123			88		278			10		2,346
Loans Receivable:
Ending Balances - Total	$	82,315	$	49,834	$	19,587		$	17,577	$	13,464		$	15,906	$	22,242		$	460	$	221,385
Ending Balances:
Evaluated for Impairment:
Individually		467		329		--			--		--			116		--			--		912
Collectively	$	81,848	$	49,505	$	19,587		$	17,577	$	13,464		$	15,790	$	22,242		$	460	$	220,473

	Real Estate Loans
June 30, 2013	1-4 Family Residential		Commercial		Multi- Family			Land			Construction			Home Equity  Loans and Lines of Credit			Commercial  Loans		Consumer Loans			Total
	(In Thousands)
Allowance for loan losses:
Beginning Balances	$	306	$	185	$	205		$	270		$	311		$	110		$	281	$	30		$	1,698
Charge-Offs		--		--		--			--			--			(16	)		--		--			(16	)
Recoveries		--		--		--			--			--			--			--		--			--
Current Provision		717		153		(102	)		(143	)		(165	)		(9	)		131		(24	)		558
Ending Balances	$	1,023	$	338	$	103		$	127		$	146		$	85		$	412	$	6		$	2,240
Evaluated for Impairment:
Individually		--		--		--			--			--			--			--		--			--
Collectively		1,023		338		103			127			146			85			412		6			2,240
Loans Receivable:
Ending Balances - Total	$	73,243	$	51,169	$	19,587		$	15,589		$	16,937		$	14,897		$	16,776	$	387		$	208,585
Ending Balances:
Evaluated for Impairment:
Individually		648		1,712		--			--			--			116			3,231		--			5,707
Collectively	$	72,595	$	49,457	$	19,587		$	15,589		$	16,937		$	14,781		$	13,545	$	387		$	202,878

The change in the allowance for loan losses by loan portfolio class for the nine months ended March 31, 2013, was as follows:

	Real Estate Loans
														Home
														Equity
														Loans
	1-4 Family				Multi-									and Lines			Commercial		Consumer
March 31, 2013	Residential		Commercial		Family			Land			Construction			of Credit			Loans		Loans			Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	306	$	185	$	205		$	270		$	311		$	110		$	281	$	30		$	1,698
Charge-Offs		--		--		--			--			--			(15	)		--		--			(15	)
Recoveries		--		--		--			--			--			--			--		--			--
Current Provision		610		149		(110	)		(138	)		(150	)		(10	)		114		(24	)		441
Ending Balances	$	916	$	334	$	95		$	132		$	161		$	85		$	395	$	6		$	2,124
Evaluated for Impairment:
Individually		--		--		--			--			--			--			--		--			--
Collectively		916		334		95			132			161			85			395		6			2,124
Loans Receivable:
Ending Balances - Total	$	67,352	$	51,450	$	19,976		$	15,899		$	15,298		$	12,828		$	15,600	$	404		$	198,807
Ending Balances:
Evaluated for Impairment:
Individually		768		972		--			--			--			116			3,704		--			5,560
Collectively	$	66,584	$	50,478	$	19,976		$	15,899		$	15,298		$	12,712		$	11,896	$	404		$	193,247

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

March 31, 2014	Unpaid  Principal Balance		Recorded Investment With No Allowance		Recorded  Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	467	$	467	$	--	$	467	$	--	$	487
Commercial		329		329		--		329		--		344
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		116		116		--		116		--		116
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	912	$	912	$	--	$	912	$	--	$	947

June 30, 2013	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	648	$	648	$	--	$	648	$	--	$	650
Commercial		1,712		1,712		--		1,712		--		1,151
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		116		116		--		116		--		116
Commercial Loans		3,231		3,231		--		3,231		--		3,534
Consumer Loans		--		--		--		--		--		--
Total	$	5,707	$	5,707	$	--	$	5,707	$	--	$	5,451

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. Loans totaling $98,000 and $413,000 were in non-accrual status at March 31, 2014 and June 30, 2013, respectively. If the non-accrual loans had been accruing interest at their original contracted rates, approximate gross interest income that would have been recorded for the nine months ended March 31, 2014 and 2013, was $2,700 and $13,000, respectively.

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Summary of Accounting Policies (Details)	9 Months Ended
	Mar. 31, 2014
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents maturity period maximum	90 days

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Loans Receivable (Tables)

9 Months Ended

Mar. 31, 2014

Loans Receivable [Abstract]

Loans receivable

Loans receivable are summarized as follows:

	March 31, 2014			June 30, 2013
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One- to Four-Family Residential	$	82,315		$	73,243
Commercial		49,834			51,169
Multi-Family Residential		19,587			19,587
Land		17,577			15,589
Construction		13,464			16,937
Equity and Second Mortgage		2,538			2,305
Equity Lines of Credit		13,368			12,592
Total Mortgage Loans		198,683			191,422
Commercial Loans		22,242			16,776
Consumer Loans
Loans on Savings Accounts		350			259
Automobile and Other Consumer Loans		110			128
Total Consumer and Other Loans		460			387
Total Loans		221,385			208,585
Less:  Allowance for Loan Losses		(2,346	)		(2,240	)
Unamortized Loan Fees		(308	)		(266	)
Net Loans Receivable	$	218,731		$	206,079

Analysis of allowance for loan losses

Following is a summary of changes in the allowance for loan losses:

	Nine Months Ended March 31,
	2014			2013
	(In Thousands)
Balance - Beginning of Period	$	2,240		$	1,698
Provision for Loan Losses		118			441
Loan Charge-Offs		(12	)		(15	)
Balance - End of Period	$	2,346		$	2,124

Credit Quality Indicators

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

			Special
March 31, 2014	Pass		Mention		Substandard		Doubtful		Total
			(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	81,848	$	396	$	71	$	--	$	82,315
Commercial		49,505		329		--		--		49,834
Multi-Family Residential		19,587		--		--		--		19,587
Land		17,577		--		--		--		17,577
Construction		13,464		--		--		--		13,464
Equity and Second Mortgage		2,538		--		--		--		2,538
Equity Lines of Credit		13,252		89		--		27		13,368
Commercial Loans		22,242		--		--		--		22,242
Consumer Loans		460		--		--		--		460
Total	$	220,473	$	814	$	71	$	27	$	221,385

June 30, 2013	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	72,595	$	313	$	335	$	--	$	73,243
Commercial		49,457		--		1,712		--		51,169
Multi-Family Residential		19,587		--		--		--		19,587
Land		15,589		--		--		--		15,589
Construction		16,937		--		--		--		16,937
Equity and Second Mortgage		2,305		--		--		--		2,305
Equity Lines of Credit		12,476		89		--		27		12,592
Commercial Loans		13,545		--		3,231		--		16,776
Consumer Loans		387		--		--		--		387
Total	$	202,878	$	402	$	5,278	$	27	$	208,585

Aging analysis of past due loans segregated by class of loans

The following tables present an aging analysis of past due loans, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

													Recorded
													Investment
			60-89		Greater						Total		>90 Days
	30-59 Days		Days Past		Than 90		Total				Loans		and
March 31, 2014	Past Due		Due		Days		Past Due		Current		Receivable		Accruing
					(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	151	$	89	$	267	$	507	$	81,808	$	82,315	$	196
Commercial		--		--		--		--		49,834		49,834		--
Multi-Family Residential		--		--		--		--		19,587		19,587		--
Land		--		--		--		--		17,577		17,577		--
Construction		--		--		--		--		13,464		13,464		--
Equity and Second Mortgage		--		--		--		--		2,538		2,538		--
Equity Lines of Credit		60		27		--		87		13,281		13,368		--
Commercial Loans		--		--		--		--		22,242		22,242		--
Consumer Loans		--		--		--		--		460		460		--
Total	$	211	$	116	$	267	$	594	$	220,791	$	221,385	$	196

June 30, 2013	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Current		Total Loans Receivable		Recorded Investment  > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	1,437	$	925	$	622	$	2,984	$	70,259	$	73,243	$	236
Commercial		--		--		--		--		51,169		51,169		--
Multi-Family Residential		--		--		--		--		19,587		19,587		--
Land		--		--		--		--		15,589		15,589		--
Construction		--		--		--		--		16,937		16,937		--
Equity and Second Mortgage		--		--		--		--		2,305		2,305		--
Equity Lines of Credit		--		--		27		27		12,565		12,592		--
Commercial Loans		--		--		--		--		16,776		16,776		--
Consumer Loans		--		--		--		--		387		387		--
Total	$	1,437	$	925	$	649	$	3,011	$	205,574	$	208,585	$	236

Allowance for loan losses and recorded investment in loans

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2014 and the year ended June 30, 2013, was as follows:

	Real Estate Loans
													Home
													Equity
													Loans
	1-4 Family				Multi-								and Lines		Commercial			Consumer
March 31, 2014	Residential		Commercial		Family			Land		Construction			of Credit		Loans			Loans		Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	1,023	$	338	$	103		$	127	$	146		$	85	$	412		$	6	$	2,240
Charge-Offs		--		--		--			--		--			--		(12	)		--		(12	)
Recoveries		--		--		--			--		--			--		--			--		--
Current Provision		187		48		(12	)		33		(23	)		3		(122	)		4		118
Ending Balances	$	1,210	$	386	$	91		$	160	$	123		$	88	$	278		$	10	$	2,346
Evaluated for Impairment:
Individually		--		--		--			--		--			--		--			--		--
Collectively		1,210		386		91			160		123			88		278			10		2,346
Loans Receivable:
Ending Balances - Total	$	82,315	$	49,834	$	19,587		$	17,577	$	13,464		$	15,906	$	22,242		$	460	$	221,385
Ending Balances:
Evaluated for Impairment:
Individually		467		329		--			--		--			116		--			--		912
Collectively	$	81,848	$	49,505	$	19,587		$	17,577	$	13,464		$	15,790	$	22,242		$	460	$	220,473

	Real Estate Loans
June 30, 2013	1-4 Family Residential		Commercial		Multi- Family			Land			Construction			Home Equity  Loans and Lines of Credit			Commercial  Loans		Consumer Loans			Total
	(In Thousands)
Allowance for loan losses:
Beginning Balances	$	306	$	185	$	205		$	270		$	311		$	110		$	281	$	30		$	1,698
Charge-Offs		--		--		--			--			--			(16	)		--		--			(16	)
Recoveries		--		--		--			--			--			--			--		--			--
Current Provision		717		153		(102	)		(143	)		(165	)		(9	)		131		(24	)		558
Ending Balances	$	1,023	$	338	$	103		$	127		$	146		$	85		$	412	$	6		$	2,240
Evaluated for Impairment:
Individually		--		--		--			--			--			--			--		--			--
Collectively		1,023		338		103			127			146			85			412		6			2,240
Loans Receivable:
Ending Balances - Total	$	73,243	$	51,169	$	19,587		$	15,589		$	16,937		$	14,897		$	16,776	$	387		$	208,585
Ending Balances:
Evaluated for Impairment:
Individually		648		1,712		--			--			--			116			3,231		--			5,707
Collectively	$	72,595	$	49,457	$	19,587		$	15,589		$	16,937		$	14,781		$	13,545	$	387		$	202,878

The change in the allowance for loan losses by loan portfolio class for the nine months ended March 31, 2013, was as follows:

	Real Estate Loans
														Home
														Equity
														Loans
	1-4 Family				Multi-									and Lines			Commercial		Consumer
March 31, 2013	Residential		Commercial		Family			Land			Construction			of Credit			Loans		Loans			Total
								(In Thousands)
Allowance for loan losses:
Beginning Balances	$	306	$	185	$	205		$	270		$	311		$	110		$	281	$	30		$	1,698
Charge-Offs		--		--		--			--			--			(15	)		--		--			(15	)
Recoveries		--		--		--			--			--			--			--		--			--
Current Provision		610		149		(110	)		(138	)		(150	)		(10	)		114		(24	)		441
Ending Balances	$	916	$	334	$	95		$	132		$	161		$	85		$	395	$	6		$	2,124
Evaluated for Impairment:
Individually		--		--		--			--			--			--			--		--			--
Collectively		916		334		95			132			161			85			395		6			2,124
Loans Receivable:
Ending Balances - Total	$	67,352	$	51,450	$	19,976		$	15,899		$	15,298		$	12,828		$	15,600	$	404		$	198,807
Ending Balances:
Evaluated for Impairment:
Individually		768		972		--			--			--			116			3,704		--			5,560
Collectively	$	66,584	$	50,478	$	19,976		$	15,899		$	15,298		$	12,712		$	11,896	$	404		$	193,247

Loans individually evaluated for impairment segregated by class of loans

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2014 and June 30, 2013:

March 31, 2014	Unpaid  Principal Balance		Recorded Investment With No Allowance		Recorded  Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	467	$	467	$	--	$	467	$	--	$	487
Commercial		329		329		--		329		--		344
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		116		116		--		116		--		116
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	912	$	912	$	--	$	912	$	--	$	947

June 30, 2013	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	648	$	648	$	--	$	648	$	--	$	650
Commercial		1,712		1,712		--		1,712		--		1,151
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		116		116		--		116		--		116
Commercial Loans		3,231		3,231		--		3,231		--		3,534
Consumer Loans		--		--		--		--		--		--
Total	$	5,707	$	5,707	$	--	$	5,707	$	--	$	5,451

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Related Party Transactions

9 Months Ended

Mar. 31, 2014

Related Party Transactions [Abstract]

Related Party Transactions

7.           Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2,470,430 and $1.4 million at March 31, 2014 and June 30, 2013, respectively.

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Earnings Per Share

9 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Earnings Per Share

5.           Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and nine months ended March 31, 2014 and 2013 were calculated as follows:

		Three Months Ended				Nine Months Ended
		March 31,				March 31,
		2014		2013		2014		2013
		(In Thousands, Except Per Share Data)
Net income	$	638	$	676	$	1,996	$	2,495
Weighted average shares outstanding - basic		2,030		2,180		2,081		2,400
Effect of dilutive common stock equivalents		52		67		50		68
Adjusted weighted average shares outstanding - diluted		2,082		2,247		2,131		2,468
Basic earnings per share	$	0.31	$	0.31	$	0.96	$	1.04
Diluted earnings per share	$	0.31	$	0.30	$	0.94	$	1.01

For the three months ended March 31, 2014 and 2013, there were outstanding options to purchase 236,935 and 275,162 shares, respectively, at a weighted average exercise price of $13.90 and $13.25 respectively, per share, and for the nine months ended March 31, 2014 and 2013, there were outstanding options to purchase 243,964 and 294,533 shares, respectively, at a weighted average exercise price of $13.85 and $13.20 per share, respectively. For the quarter and nine months ended March 31, 2014, 51,356 and 49,551 options, respectively were included in the computation of diluted earnings per share.

The following table presents the components of weighted average outstanding shares for purposes of calculating earnings per share:

	Three Months Ended March 31,						Nine Months Ended March 31,
	2014			2013			2014			2013
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(160	)		(171	)		(163	)		(174	)
Average unearned RRP shares		(55	)		(69	)		(61	)		(75	)
Average treasury shares		(817	)		(642	)		(757	)		(413	)
Weighted average shares outstanding		2,030			2,180			2,081			2,400

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Stock-Based Compensation

9 Months Ended

Mar. 31, 2014

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6.           Stock-Based Compensation

Recognition and Retention Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Recognition and Retention Plan and Trust Agreement (the “2005 Recognition Plan”) as an incentive to retain personnel of experience and ability in key positions.  The aggregate number of shares of the Company’s common stock subject to award under the 2005 Recognition Plan totaled 63,547 shares.  As the shares were acquired for the 2005 Recognition Plan, the purchase price of these shares was recorded as a contra equity account.  As the shares are distributed, the contra equity account is reduced.  During the nine months ended March 31, 2014, 561 shares vested and were released from the 2005 Recognition Plan Trust and 1,125 shares remained in the 2005 Recognition Plan Trust at March 31, 2014.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Recognition and Retention Plan and Trust Agreement (the “2011 Recognition Plan”, together with the 2005 Recognition  Plan, the  “Recognition  Plan”) as  an  incentive  to  retain  personnel  of  experience and ability in key positions.  The aggregate number of shares of the Company’s common stock available for award under the 2011 Recognition Plan totaled 77,808 shares.  At March 31, 2014, 50,124 shares remained in the 2011 Recognition Plan Trust.

Recognition Plan shares are earned by recipients at a rate of 20% of the aggregate number of shares covered by the Recognition Plan award over five years.  Generally, if the employment of an employee or service as a non-employee director is terminated prior to the fifth anniversary of the date of grant of Recognition Plan share award, the recipient shall forfeit the right to any shares subject to the award that have not been earned.  In the case of death or disability of the recipient or a change in control of the Company, the Recognition Plan awards will be vested and shall be distributed as soon as practicable thereafter.

The Recognition Plan cost is recognized over the five year vesting period. During the nine months ended March 31, 2014, the Company recognized $157,000 in expense related to the Recognition Plans.

Stock Option Plan

On August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the “2005 Option Plan”) for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2005 Option Plan totaled 158,868.  Both incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan.  As of March 31, 2014, 49,041 options were outstanding under the 2005 Option Plan and 2,133 were available for future grant.

On December 23, 2011, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Stock Option Plan (the “2011 Option Plan”, together with the 2005 Option Plan, the “Option Plans”) for the benefit of directors, officers, and other key employees.  The aggregate number of shares of common stock reserved for issuance under the 2011 Option Plan totaled 194,522.  Both incentive stock options and non-qualified stock options may be granted under the 2011 Option Plan.  As of March 31, 2014, 169,234 options had been granted under the 2011 Option Plan of which 3,516 options had been exercised 3,112 had been forfeited and 28,400 were available for future grant.

Under the Option Plans, the exercise price of each option cannot be less than the fair market value of the underlying common stock as of the date of the option grant and the maximum term is ten years. Incentive stock options and non-qualified stock options granted under the Option 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 the 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 accounts for the Option Plans under the guidance of FASB ASC Topic 718, Compensation – Stock Compensation.

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Fair Value Disclosures

9 Months Ended

Mar. 31, 2014

Fair Value Disclosures [Abstract]

Fair Value Disclosures

8.           Fair Value Disclosures

The following disclosure is made in accordance with the requirements of ASC 825, Financial Instruments.  Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash.  In cases where quoted market prices are not available, fair values have been estimated using the present value of future cash flows or other valuation techniques.  The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of future cash flows, which require considerable judgment.  Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.

ASC 825 excludes certain financial instruments and all nonfinancial instruments from its disclosure requirements.  These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.

The following methods and assumptions were used by the Company in estimating fair values of financial instruments:

Cash and Cash Equivalents

The carrying amount approximates the fair value of cash and cash equivalents.

Securities to be Held-to-Maturity and Available-for-Sale

Fair values for investment securities, including mortgage-backed securities, are based on quoted market prices, where available.  If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments.  The carrying values of restricted or non-marketable equity securities approximate their fair values.  The carrying amount of accrued investment income approximates its fair value.

Mortgage Loans Held-for-Sale

Because these loans are normally disposed of within ninety days of origination, their carrying value closely approximates the fair value of such loans.

Loans Receivable

For variable-rate loans that re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value. Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.

Deposit Liabilities

The fair values for demand deposit accounts are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts.  Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate is estimated using the rates currently offered for deposits of similar maturities.

Advances from Federal Home Loan Bank

The carrying amount of short-term borrowings approximates their fair value.  The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.

Off-Balance Sheet Credit-Related Instruments

Fair values for outstanding mortgage loan commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.

The fair value of interest rate floors and caps contained in some loan servicing agreements and variable rate mortgage loan contracts are considered immaterial within the context of fair value disclosure requirements.  Accordingly, no fair value estimate is provided for these instruments.

The carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2014				June 30, 2013
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	6,649	$	6,649	$	3,685	$	3,685
Securities Available-for-Sale		40,094		40,094		47,961		47,961
Securities to be Held-to-Maturity		1,113		1,113		1,465		1,465
Loans Held-for-Sale		6,795		6,795		3,464		3,464
Loans Receivable		218,731		221,859		206,079		206,055
Financial Liabilities
Deposits		229,246		226,770		211,922		211,130
Advances from FHLB		17,454		17,770		21,662		22,045
Off-Balance Sheet Items
Mortgage Loan Commitments		249		249		291		291

The estimated fair values presented above could be materially different than net realizable value and are only indicative of the individual financial instrument’s fair value.  Accordingly, these estimates should not be considered an indication of the fair value of the Company taken as a whole.

The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820").  ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.  SFAS No. 157 was issued to establish a uniform definition of fair value.  The definition of fair value is market-based as opposed to company-specific, and includes the following:

· Defines fair value as the price that would be received to sell an asset or paid to transfer a liability, in either case, through an orderly transaction between market participants at a measurement date and establishes a framework for measuring fair value;

· Establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date;

· Nullifies the guidance in EITF 02-3, which required the deferral of profit at inception of a transaction involving a derivative financial instrument in the absence of observable data supporting the valuation technique;

· Eliminates large position discounts for financial instruments quoted in active markets and requires consideration of the company’s creditworthiness when valuing liabilities; and

· Expands disclosures about instrument that are measured at fair value.

The standard establishes a three-level valuation hierarchy for disclosure of fair value measurements.  The valuation hierarchy favors the transparency of inputs to the valuation of an asset or liability as of the measurement date.  The three levels are defined as follows:

· Level 1 – Fair value is based upon quoted prices (unadjusted) for identical assets or liabilities in active markets in which the Company can participate.

· Level 2 – Fair value is based upon (a) quoted prices for similar assets or liabilities in active markets; (b) quoted prices for identical or similar assets or liabilities in markets that are not active, that is, markets in which there are few transactions for the asset or liability, the prices are not current, or price quotations vary substantially either over time or among market makers, or in which little information is released publicly; (c) inputs other than quoted prices that are observable for the asset or liability or (d) inputs that are derived principally from or corroborated by observable market data by correlation or other means.

· Level 3 – Fair value is based uponinputs that are unobservable for the asset or liability.  These inputs reflect the Company’s own assumptions about the assumptions that market participants would use in pricing the asset or liability (including assumptions about risk).  These inputs are developed based on the best information available in the circumstances, which include the Company’s own data. The Company’s own data used to develop unobservable inputs are adjusted if information indicates that market participants would use different assumptions.

A financial instrument’s categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2014 and June 30, 2013 are as follows:

	Fair Value Measurements Using:
March 31, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	338	$	338
FNMA Mortgage-Backed Certificates		--		16,064		16,064
GNMA Mortgage-Backed Certificates		--		23,692		23,692
Total	$	--	$	40,094	$	40,094

	Fair Value Measurements Using:
June 30, 2013	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	--	$	416	$	416
FNMA Mortgage-Backed Certificates		--		11,960		11,960
GNMA Mortgage-Backed Certificates		--		35,585		35,585
Total	$	--	$	47,961	$	47,961

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Fair Value Disclosures (Details) (USD $) In Thousands, unless otherwise specified	9 Months Ended
	Mar. 31, 2014	Mar. 31, 2014 Carrying Value [Member]	Jun. 30, 2013 Carrying Value [Member]	Mar. 31, 2014 Estimated Fair Value [Member]	Jun. 30, 2013 Estimated Fair Value [Member]
Mortgage Loans Held-for-Sale [Abstract]
Number of days from origination to dispose Mortgage Loans Held-for-Sale, maximum	90 days
Financial Assets [Abstract]
Cash and Cash Equivalents		$ 6,649	$ 3,685	$ 6,649	$ 3,685
Securities Available-for-Sale		40,094	47,961	40,094	47,961
Securities to be Held-to-Maturity		1,113	1,465	1,113	1,465
Loans Held-for-Sale		6,795	3,464	6,795	3,464
Loans Receivable		218,731	206,079	221,859	206,055
Financial Liabilities [Abstract]
Deposits		229,246	211,922	226,770	211,130
Advances from FHLB		17,454	21,662	17,770	22,045
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments		$ 249	$ 291	$ 249	$ 291

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Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2014

Earnings Per Share [Abstract]

Calculation of earnings per share

Earnings per share for the three and nine months ended March 31, 2014 and 2013 were calculated as follows:

		Three Months Ended				Nine Months Ended
		March 31,				March 31,
		2014		2013		2014		2013
		(In Thousands, Except Per Share Data)
Net income	$	638	$	676	$	1,996	$	2,495
Weighted average shares outstanding - basic		2,030		2,180		2,081		2,400
Effect of dilutive common stock equivalents		52		67		50		68
Adjusted weighted average shares outstanding - diluted		2,082		2,247		2,131		2,468
Basic earnings per share	$	0.31	$	0.31	$	0.96	$	1.04
Diluted earnings per share	$	0.31	$	0.30	$	0.94	$	1.01

Components of average outstanding common shares

The following table presents the components of weighted average outstanding shares for purposes of calculating earnings per share:

	Three Months Ended March 31,						Nine Months Ended March 31,
	2014			2013			2014			2013
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(160	)		(171	)		(163	)		(174	)
Average unearned RRP shares		(55	)		(69	)		(61	)		(75	)
Average treasury shares		(817	)		(642	)		(757	)		(413	)
Weighted average shares outstanding		2,030			2,180			2,081			2,400

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Loans Receivable, Credit Quality Indicators (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 221,385	$ 208,585	$ 198,807
One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	82,315	73,243
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	49,834	51,169	51,450
Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,587	19,587	19,976
Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	17,577	15,589	15,899
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,464	16,937	15,298
Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,538	2,305
Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,368	12,592
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	22,242	16,776	15,600
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	460	387	404
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	220,473	202,878
Pass [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	81,848	72,595
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	49,505	49,457
Pass [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,587	19,587
Pass [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	17,577	15,589
Pass [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,464	16,937
Pass [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,538	2,305
Pass [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,252	12,476
Pass [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	22,242	13,545
Pass [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	460	387
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	814	402
Special Mention [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	396	313
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	329	0
Special Mention [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	89	89
Special Mention [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Special Mention [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	71	5,278
Substandard [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	71	335
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	1,712
Substandard [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Substandard [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	3,231
Substandard [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	27	27
Doubtful [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	27	27
Doubtful [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Doubtful [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 0	$ 0

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended		9 Months Ended
	Mar. 31, 2014	Mar. 31, 2013	Mar. 31, 2014	Mar. 31, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net Income	$ 638	$ 676	$ 1,996	$ 2,495
Other Comprehensive Income (Loss), Net of Tax
Unrealized Holding Gain (Loss) on Securities Available-for-Sale, Net of Tax of $28 and $27 in 2014, respectively, and $121 and $240 in 2013, respectively	(55)	(234)	(53)	(466)
Reclassification Adjustment for Gain Included in Net Income, Net of Tax of $0 and $5 in 2014, respectively, and $7 and $69 in 2013, respectively	0	(14)	(10)	(134)
Net Other Comprehensive Income (Loss)	(55)	(248)	(63)	(600)
Total Comprehensive Income	$ 583	$ 428	$ 1,933	$ 1,895

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Securities

9 Months Ended

Mar. 31, 2014

Securities [Abstract ]

Securities

2.           Securities

The amortized cost and fair value of securities, with gross unrealized gains and losses, follows:

	March 31, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	325	$	13	$	--	$	338
FNMA Mortgage-Backed Certificates		15,464		701		101		16,064
GNMA Mortgage-Backed Certificates		24,334		7		649		23,692
Total Debt Securities		40,123		721		750		40,094
Total Securities Available-for-Sale	$	40,123	$	721	$	750	$	40,094
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
8,633 Shares – Federal Home Loan Bank	$	863	$	--	$	--	$	863
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,113		--		--		1,113
Total Securities Held-to-Maturity	$	$1,113	$	--	$	--	$	1,113

	June 30, 2013
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	397	$	19	$	--	$	416
FNMA Mortgage-Backed Certificates		11,185		775		--		11,960
GNMA Mortgage-Backed Certificates		36,312		10		737		35,585
Total Debt Securities		47,894		804		737		47,961
Total Securities Available-for-Sale	$	47,894	$	804	$	737	$	47,961
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
12,149 Shares – Federal Home Loan Bank	$	1,215	$	--	$	--	$	1,215
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,465		--		--		1,465
Total Securities Held-to-Maturity	$	1,465	$	--	$	--	$	1,465

The amortized cost and fair value of debt securities by contractual maturity at March 31, 2014, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Within One Year or Less	$	3	$	3	$	--	$	--
One through Five Years		282		290		--		--
After Five through Ten Years		184		189		--		--
Over Ten Years		39,654		39,612		--		--
Total	$	40,123	$	40,094	$	--	$	--

For the nine months ended March 31, 2014, proceeds from the sale of securities available-for-sale amounted to $13.0 million. Gross realized gains amounted to $35,000 for the nine months ended March 31, 2014.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2014 and June 30, 2013 aggregated by investment category and length of time that individual securities have been in a continuous loss position.  There were no unrealized losses on securities held-to-maturity at March 31, 2014 or June 30, 2013.

	March 31, 2014
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale:
Debt Securities
Mortgage-Backed Securities	$	101	$	1,879	$	649	$	23,550
Total Securities Available-for-Sale	$	101	$	1,879	$	649	$	23,550

	June 30, 2013
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	737	$	27,875	$	--	$	--
Total Securities Available-for-Sale	$	737	$	27,875	$	--	$	--

The Company’s 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.

At March 31, 2014, securities with a carrying value of $10.5 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $100.1 million were pledged to secure FHLB advances.

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Loans Receivable, Aging Analysis of Past Due Loans (Details) (USD $) In Thousands, unless otherwise specified	Mar. 31, 2014	Jun. 30, 2013	Mar. 31, 2013
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	$ 211	$ 1,437
60-89 Days Past Due	116	925
Greater than 90 Days	267	649
Total Past Due	594	3,011
Current	220,791	205,574
Total Loans Receivable	221,385	208,585	198,807
Recorded Investment > 90 Days and Accruing	196	236
One-to-Four Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	151	1,437
60-89 Days Past Due	89	925
Greater than 90 Days	267	622
Total Past Due	507	2,984
Current	81,808	70,259
Total Loans Receivable	82,315	73,243
Recorded Investment > 90 Days and Accruing	196	236
Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	49,834	51,169
Total Loans Receivable	49,834	51,169	51,450
Recorded Investment > 90 Days and Accruing	0	0
Multi-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	19,587	19,587
Total Loans Receivable	19,587	19,587	19,976
Recorded Investment > 90 Days and Accruing	0	0
Land [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	17,577	15,589
Total Loans Receivable	17,577	15,589	15,899
Recorded Investment > 90 Days and Accruing	0	0
Construction [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	13,464	16,937
Total Loans Receivable	13,464	16,937	15,298
Recorded Investment > 90 Days and Accruing	0	0
Equity and Second Mortgage [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	2,538	2,305
Total Loans Receivable	2,538	2,305
Recorded Investment > 90 Days and Accruing	0	0
Equity Lines of Credit [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	60	0
60-89 Days Past Due	27	0
Greater than 90 Days	0	27
Total Past Due	87	27
Current	13,281	12,565
Total Loans Receivable	13,368	12,592
Recorded Investment > 90 Days and Accruing	0	0
Commercial Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	22,242	16,776
Total Loans Receivable	22,242	16,776	15,600
Recorded Investment > 90 Days and Accruing	0	0
Consumer Loan [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	0
Current	460	387
Total Loans Receivable	460	387	404
Recorded Investment > 90 Days and Accruing	$ 0	$ 0

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Deposits (Tables)

9 Months Ended

Mar. 31, 2014

Deposits [Abstract]

Classification of Deposits

Deposits at March 31, 2014 and June 30, 2013 consist of the following classifications:

	March 31, 2014		June 30, 2013
	(In Thousands)
Non-Interest Bearing	$	32,476	$	26,027
NOW Accounts		26,977		24,625
Money Markets		43,703		39,482
Passbook Savings		11,846		9,524
		115,002		99,658
Certificates of Deposit		114,244		112,264
Total Deposits	$	229,246	$	211,922