10-Q

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

For the quarterly period ended:	September 30, 2014
or

[   ] 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.    [X]  Yes     [   ]  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).         [X]  Yes    [   ]   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                             [   ]                                                 Accelerated filer                                           [   ]

Non-accelerated filer                              [   ]                                                  Smaller reporting company                         [X]

(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).

[   ]  Yes    [X]   No

Shares of common stock, par value $.01 per share, outstanding as of November 7, 2014: The registrant had 2,198,442shares of common stock outstanding.

INDEX

		Page
PART I	FINANCIAL INFORMATION
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	25
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4:	Controls and Procedures	31
PART II	OTHER INFORMATION
Item 1:	Legal Proceedings	31
Item 1A:	Risk Factors	31
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	32
Item 3:	Defaults Upon Senior Securities	32
Item 4:	Mine Safety Disclosures	32
Item 5:	Other Information	32
Item 6:	Exhibits	32
SIGNATURES

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	September 30, 2014			June 30, 2014
	(Dollars In Thousands)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing        Deposits with Other Banks of $1,859 and $9,317 for        September 30, 2014 and June 30, 2014, Respectively)	$	4,794		$	13,633
Securities Available-for-Sale		55,494			48,434
Securities Held-to-Maturity		2,399			1,765
Loans Held-for-Sale		11,035			9,375
Loans Receivable, Net of Allowance for Loan Losses        of $2,285 and $2,396, Respectively		248,309			239,563
Accrued Interest Receivable		987			965
Premises and Equipment, Net		9,994			8,454
Bank Owned Life Insurance		6,244			6,203
Deferred Tax Asset		776			723
Other Assets		453			414
Total Assets	$	340,485		$	329,529
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits	$	252,011		$	272,295
Advances from Borrowers for Taxes and Insurance		615			428
Advances from Federal Home Loan Bank of Dallas		43,589			12,897
Other Accrued Expenses and Liabilities		1,612			1,130
Total Liabilities		297,827			286,750
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        2,203,442 Shares Outstanding at September 30, 2014;        2,241,967 Shares Outstanding at June 30, 2014		34			34
Additional Paid-in Capital		32,940			32,853
Treasury Stock, at Cost – 858,944 shares at September 30, 2014;        820,419 at June 30, 2014		(16,454	)		(15,658	)
Unearned ESOP Stock		(1,532	)		(1,561	)
Unearned RRP Trust Stock		(599	)		(609	)
Retained Earnings		28,255			27,588
Accumulated Other Comprehensive Income		14			172
Total Stockholders’ Equity		42,658			42,779
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	340,485		$	329,529

See accompanying notes to unaudited consolidated financial statements.

1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended September 30,
	2014		2013
	(In Thousands, Except per Share Data)
INTEREST INCOME
Loans, Including Fees	$	3,307	$	3,050
Investment Securities		1		1
Mortgage-Backed Securities		244		276
Other Interest-Earning Assets		3		4
Total Interest Income		3,555		3,331
INTEREST EXPENSE
Deposits		535		575
Federal Home Loan Bank Borrowings		45		48
Other Bank Borrowings		--		7
Total Interest Expense		580		630
Net Interest Income		2,975		2,701
PROVISION FOR LOAN LOSSES		40		66
Net Interest Income after Provision for Loan Losses		2,935		2,635
NON-INTEREST INCOME
Gain on Sale of Loans		472		476
Income on Bank Owned Life Insurance		41		44
Service Charges on deposit accounts		101		75
Other Income		15		9
Total Non-Interest Income		629		604
NON-INTEREST EXPENSE
Compensation and Benefits		1,502		1,384
Occupancy and Equipment		229		195
Data Processing		119		115
Audit and Examination Fees		53		57
Franchise and Bank Shares Tax		73		93
Advertising		75		64
Legal Fees		69		93
Loan and Collection		66		32
Deposit Insurance Premium		31		33
Other Expense		120		116
Total Non-Interest Expense		2,337		2,182
Income Before Income Taxes		1,227		1,057
PROVISION FOR INCOME TAX EXPENSE		404		344
Net Income	$	823	$	713
EARNINGS PER COMMON SHARE:
Basic	$	0.41	$	0.34
Diluted	$	0.40	$	0.33
DIVIDENDS DECLARED	$	0.07	$	0.06

See accompanying notes to unaudited consolidated financial statements.

2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended September 30,
	2014			2013
	(In Thousands)
Net Income	$	823		$	713
Other Comprehensive (Loss), Net of Tax
Unrealized Holding (Loss) on Securities Available-for-Sale,      Net of Tax of $81 in 2014 and $135 in 2013		(158	)		(262	)
Total Comprehensive Income	$	665		$	451

See accompanying notes to unaudited consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

THREE MONTHS ENDED SEPTEMBER 30, 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, 2013	$	32	$	32,218	$	(1,676	)	$	(863	)	$	25,395		$	(13,168	)	$	44		$	41,982
Net Income		--		--		--			--			713			--			--			713
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			--			(262	)		(262	)
RRP Shares Earned		--		--		--			10			--			--			--			10
Stock Options Vested		--		41		--			--			--			--			--			41
Common Stock Issuance for Stock     Option Exercises		1		245		--			--			--			--			--			246
ESOP Compensation Earned		--		21		28			--			--			--			--			49
Acquisition of Treasury Stock		--		--		--			--			--			(473	)		--			(473	)
Dividends Declared		--		--		--			--			(141	)		--			--			(141	)
BALANCE – September  30, 2013	$	33	$	32,525	$	(1,648	)	$	(853	)	$	25,967		$	(13,641	)	$	(218	)	$	42,165
BALANCE – June 30, 2014	$	34	$	32,853	$	(1,561	)	$	(609	)	$	27,588		$	(15,698	)	$	172		$	42,779
Net Income		--		--		--			--			823			--			--			823
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			--			(158	)		(158	)
RRP Shares Earned		--		--		--			10			--			--			--			10
Stock Options Vested		--		43		--			--			--			--			--			43
Common Stock Issuance for Stock     Option Exercises		--		17		--			--			--			--			--			17
ESOP Compensation Earned		--		27		29			--			--			--			--			56
Acquisition of Treasury Stock		--		--		--			--			--			(756	)		--			(756	)
Dividends Declared		--		--		--			--			(156	)		--			---			(156	)
BALANCE – September  30, 2014	$	34	$	32,940	$	(1,532	)	$	(599	)	$	28,255		$	(16,454	)	$	14		$	42,658

See accompanying notes to unaudited consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
	Three Months Ended
	September 30,
	2014			2013
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	823		$	713
Adjustments to Reconcile Net Income to Net
Cash Used in Operating Activities
Net Amortization and Accretion on Securities		3			18
Gain on Sale of Loans		(472	)		(476	)
Amortization of Deferred Loan Fees		(76	)		(18	)
Depreciation of Premises and Equipment		84			69
ESOP Expense		56			49
Stock Option Expense		44			41
Recognition and Retention Plan Expense		57			53
Deferred Income Tax		29			(17	)
Provision for Loan Losses		40			66
Increase in Cash Surrender Value on Bank Owned Life Insurance		(41	)		(44	)
Changes in Assets and Liabilities:
Loans Held-for-Sale – Originations and Purchases		(23,062	)		(20,378	)
Loans Held-for-Sale – Sale and Principal Repayments		21,874			18,341
Accrued Interest Receivable		(21	)		(4	)
Other Operating Assets		(40	)		46
Other Operating Liabilities		435			419
Net Cash Used In Operating Activities		(267	)		(1,122	)
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		(8,714	)		(849	)
Deferred Loan Fees Collected		4			17
Acquisition of Premises and Equipment		(1,624	)		(445	)
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities		2,540			3,401
Purchases of Securities		(9,843	)		(8,798	)
Activity in Held-to-Maturity Securities:
Redemption Proceeds		128			--
Purchases of Securities		(762	)		(134	)
Net Cash Used in Investing Activities		(18,271	)		(6,808	)

See accompanying notes to unaudited consolidated financial statements.

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
	Three Months Ended
	September 30,
	2014			2013
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	$	(20,284	)	$	20,603
Proceeds from Federal Home Loan Bank Advances		349,750			217,750
Repayments of Advances from Federal Home Loan Bank		(319,058	)		(223,879	)
Net Increase in Advances from Borrowers for Taxes and Insurance		186			115
Dividends Paid		(156	)		(141	)
Acquisition of Treasury Stock		(756	)		(473	)
Proceeds from Stock Options Exercised		17			245
Proceeds from other Bank Borrowings		--			300
Net Cash Provided by Financing Activities		9,699			14,520
NET (DECREASE)  INCREASE  IN CASH AND CASH EQUIVALENTS		(8,839	)		6,590
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		13,633			3,685
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	4,794		$	10,275
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	571		$	636
Income Taxes Paid		1			--
Market Value Adjustment for Loss on Securities Available-for-Sale		(240	)		(397	)

See accompanying notes to unaudited 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 three month period ended September 30, 2014, is not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2015.

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 September 30, 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 five 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 September 30, 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 meaningful 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.

Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.   ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted.  The Company’s current accounting treatment of performance conditions for employees who are or become eligible prior to the achievement of the performance target are consistent with ASU 2014-12, and as such does not expect the new guidance to have a material effect on the Corporation's financial condition and results of operations.  The Company expects to prospectively adopt ASU 2014-12 in the first quarter of 2015.

10

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities

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

	September 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	301	$	11	$	--	$	312
FNMA Mortgage-Backed Certificates		33,901		732		121		34,512
GNMA Mortgage-Backed Certificates		21,271		6		607		20,670
Total Debt Securities		55,473		749		728		55,494
Total Securities Available-for-Sale	$	55,473	$	749	$	728	$	55,494
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
21,487Shares – Federal Home Loan Bank	$	2,149	$	--	$	--	$	2,149
630 Shares – First National Bankers     Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,399		--		--		2,399
Total Securities Held-to-Maturity	$	2,399	$	--	$	--	$	2,399

	June 30, 2014
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	311	$	12	$	--	$	323
FNMA Mortgage-Backed Certificates		24,947		857		24		25,780
GNMA Mortgage-Backed Certificates		22,915		6		590		22,331
Total Debt Securities		48,173		875		614		48,434
Total Securities Available-for-Sale	$	48,173	$	875	$	614	$	48,434
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
15,145 Shares – Federal Home Loan Bank	$	1,515	$	--	$	--	$	1,515
630 Shares – First National Bankers     Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,765		--		--		1,765
Total Securities Held-to-Maturity	$	1,765	$	--	$	--	$	1,765

11

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities (continued)

The amortized cost and fair value of securities by contractual maturity at September 30, 2014, follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		239		246		--		--
After Five through Ten Years		152		157		--		--
Over Ten Years		55,082		55,091		--		--
		55,473		55,494		--		--
Other Equity Securities		--		--		2,399		2,399
Total	$	55,473	$	55,494	$	2,399	$	2,399

There were no sales of available-for-sale securities during the three months ended September 30, 2014.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at September 30, 2014 and June 30, 2014 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 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	$             91	$   19,697	$         637	$     22,471
Marketable Equity Securities	--	--	--	--
Total Securities Available-for-Sale	$             91	$    19,697	$         637	$     22,471

	June 30, 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	$             24	$       1,947	$          590	$     22,193
Marketable Equity Securities	--	--	--	--
Total Securities Available-for-Sale	$             24	$       1,947	$          590	$     22,193

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.

12

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.           Securities (continued)

At September 30, 2014, securities with a carrying value of $9.1 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $149.9 million were pledged to secure FHLB advances.

3.           Loans Receivable

Loans receivable are summarized as follows:

	September 30, 2014			June 30, 2014
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One- to Four-Family Residential	$	96,279		$	89,545
Commercial		55,554			56,266
Multi-Family Residential		15,967			20,368
Land		22,513			19,945
Construction		13,366			12,505
Equity and Second Mortgage		2,318			2,563
Equity Lines of Credit		17,380			14,950
Total Mortgage Loans		223,377			216,142
Commercial Loans		27,032			25,749
Consumer Loans
Loans on Savings Accounts		304			255
Automobile and Other Consumer Loans		107			111
Total Consumer and Other Loans		411			366
Total Loans		250,820			242,257
Less:  Allowance for Loan Losses		(2,285	)		(2,396	)
Unamortized Loan Fees		(226	)		(298	)
Net Loans Receivable	$	248,309		$	239,563

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

	Three Months Ended September 30,
	2014			2013
	(In Thousands)
Balance - Beginning of Period	$	2,396		$	2,240
Provision for Loan Losses		40			66
Loan Charge-Offs		(151	)		--
Balance - End of Period	$	2,285		$	2,306

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.

13

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

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 September 30, 2014 and June 30, 2014:

			Special
September 30, 2014	Pass		Mention		Substandard		Doubtful		Total
			(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	96,151	$	115	$	13	$	--	$	96,279
Commercial		54,937		553		--		64		55,554
Multi-Family Residential		15,967		--		--		--		15,967
Land		22,513		--		--		--		22,513
Construction		13,366		--		--		--		13,366
Equity and Second Mortgage		2,318		--		--		--		2,318
Equity Lines of Credit		17,353		--		--		27		17,380
Commercial Loans		27,032		--		--		--		27,032
Consumer Loans		411		--		--		--		411
Total	$	250,048	$	668	$	13	$	91	$	250,820

14

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

			Special
June 30, 2014	Pass		Mention		Substandard		Doubtful		Total
					(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	89,345	$	49	$	--	$	151	$	89,545
Commercial		53,621		2,645		--		--		56,266
Multi-Family Residential		20,368		--		--		--		20,368
Land		19,945		--		--		--		19,945
Construction		12,505		--		--		--		12,505
Equity and Second Mortgage		2,563		--		--		--		2,563
Equity Lines of Credit		14,923		--		--		27		14,950
Commercial Loans		25,749		--		--		--		25,749
Consumer Loans		366		--		--		--		366
Total	$	239,385	$	2,694	$	--	$	178	$	242,257

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 September 30, 2014 and June 30, 2014:

													Recorded
													Investment
			60-89		Greater						Total		> 90 Days
	30-59 Days		Days Past		Than 90		Total				Loans		and
September 30, 2014	Past Due		Due		Days		Past Due		Current		Receivable		Accruing
					(In Thousands)
Real Estate Loans:
One- to Four-Family      Residential	$	1,138	$	923	$	81	$	2,142	$	94,137	$	96,279	$	68
Commercial		--		--		--		--		55,554		55,554		--
Multi-Family      Residential		--		--		--		--		15,967		15,967		--
Land		--		--		--		--		22,513		22,513		--
Construction		--		--		--		--		13,366		13,366		--
Equity and Second       Mortgage		--		--		--		--		2,318		2,318		--
Equity Lines of Credit		--		--		27		27		17,353		17,380		--
Commercial Loans		--		--		--		--		27,032		27,032		--
Consumer Loans		--		--		--		--		411		411		--
Total	$	1,138	$	923	$	108	$	2,169	$	248,651	$	250,820	$	68

15

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

June 30, 2014	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	$	1,326	$	435	$	164	$	1,925	$	87,620	$	89,545	$	13
Commercial		--		--		--		--		56,266		56,266		--
Multi-Family      Residential		--		--		--		--		20,368		20,368		--
Land		--		--		--		--		19,945		19,945		--
Construction		--		--		--		--		12,505		12,505		--
Equity and Second      Mortgage		--		--		--		--		2,563		2,563		--
Equity Lines of Credit		--		--		27		27		14,923		14,950		--
Commercial Loans		259		--		--		259		25,490		25,749		--
Consumer Loans		--		--		--		--		366		366		--
Total	$	1,585	$	435	$	191	$	2,211	$	240,046	$	242,257	$	13

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 September 30, 2014 or June 30, 2014.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2014 was as follows:

		Real Estate Loans
															Home
															Equity
															Loans
															and
		1-4 Family						Multi-							Lines		Commercial		Consumer
September 30, 2014		Residential			Commercial			Family			Land		Construction		of  Credit		Loans		Loans		Total
											(In Thousands)
Allowance for loan losses:
Beginning Balances	$	1,224		$	464		$	128		$	168	$	105	$	99	$	202	$	6	$	2,396
Charge-Offs		(151	)		--			--			--		--		--		--		--		(151	)
Recoveries		--			--			--			--		--		--		--		--		--
Current Provision		96			(108	)		(56	)		12		22		29		45		--		40
Ending Balances	$	1,169		$	356		$	72		$	180	$	127	$	128	$	247	$	6	$	2,285
Evaluated for    Impairment:
Individually		--			--			--			--		--		--		--		--		--
Collectively		1,169			356			72			180		127		128		247		6		2,285
Loans Receivable:
Ending Balances – Total	$	96,279		$	55,554		$	15,967		$	22,513	$	13,366	$	19,698	$	27,032	$	411	$	250,820
Ending Balances:
Evaluated for    Impairment:
Individually		128			617			--			--		--		27		--		--		772
Collectively	$	96,151		$	54,937		$	15,967		$	22,513	$	13,366	$	19,671	$	27,032	$	411	$	250,048

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 and recorded investment in loans for the year ended June 30, 2014 and three months ended September 30, 2013, was as follows:

	Real Estate Loans
June 30, 2014	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	$	1,023	$	338	$	103	$	127	$	146		$	85		$	412		$	6	$	2,240
Charge-Offs		--		--		--		--		--			(12	)		--			--		(12	)
Recoveries		--		--		--		--		--			--			--			--		--
Current Provision		201		126		25		41		(41	)		26			(210	)		--		168
Ending Balances	$	1,224	$	464	$	128	$	168	$	105		$	99		$	202		$	6	$	2,396
Evaluated for Impairment:
Individually		--		--		--		--		--			--			--			--		--
Collectively		1,224		464		128		168		105			99			202			6		2,396
Loans Receivable:
Ending Balances - Total	$	89,545	$	56,266	$	20,368	$	19,945	$	12,505		$	17,513		$	25,749		$	366	$	242,257
Ending Balances:
Evaluated for Impairment:
Individually		200		2,645		--		--		--			27			--			--		2,872
Collectively	$	89,345	$	53,621	$	20,368	$	19,945	$	12,505		$	17,486		$	25,749		$	366	$	239,385

	Real Estate Loans
September 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	$	1,023	$	338	$	103		$	127	$	146		$	85		$	412		$	6	$	2,240
Charge-Offs		--		--		--			--		--			--			--			--		--
Recoveries		--		--		--			--		--			--			--			--		--
Current Provision		94		74		(13	)		2		(17	)		(5	)		(71	)		2		66
Ending Balances	$	1,117	$	412	$	90		$	129	$	129		$	80		$	341		$	8	$	2,306
Evaluated for Impairment:
Individually		--		--		--			--		--			--			--			--		--
Collectively		1,117		412		90			129		129			80			341			8		2,306
Loans Receivable:
Ending Balances - Total	$	76,379	$	50,310	$	19,567		$	15,317	$	16,152		$	14,165		$	17,176		$	368	$	209,434
Ending Balances:
Evaluated for Impairment:
Individually		565		1,699		--			--		--			116			2,937			--		5,317
Collectively	$	75,814	$	48,611	$	19,567		$	15,317	$	16,152		$	14,049		$	14,239		$	368	$	204,117

17

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.           Loans Receivable (continued)

Credit Quality Indicators (continued)

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

September 30, 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	$	128	$	128	$	--	$	128	$	--	$	137
Commercial		617		617		--		617		--		658
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		27		27		--		27		--		27
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	772	$	772	$	--	$	772	$	--	$	822

June 30, 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	$	200	$	200	$	--	$	200	$	--	$	216
Commercial		2,645		2,645		--		2,645		--		2,661
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		27		27		--		27		--		27
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	2,872	$	2,872	$	--	$	2,872	$	--	$	2,904

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status.

There was no interest income recognized on non-accrual loans during the three months ended September 30, 2014 or year ended June 30, 2014. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the three months ended September 30, 2014 and year ended June 30, 2014 was $0 and $3,000, respectively.

4.           Deposits

Deposits at September 30, 2014 and June 30, 2014 consist of the following classifications:

	September 30, 2014		June 30, 2014
	(In Thousands)
Non-Interest Bearing	$	40,433	$	43,447
NOW Accounts		26,278		24,015
Money Markets		45,198		72,240
Passbook Savings		13,195		12,165
		125,104		151,867
Certificates of Deposit		126,907		120,428
Total Deposits	$	252,011	$	272,295

18

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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 months ended September 30, 2014 and 2013 were calculated as follows:

	Three Months Ended September 30,
	2014		2013
	(In Thousands, Except Per Share Data)
Net income	$	823	$	713
Weighted average shares outstanding - basic		2,006		2,113
Effect of dilutive common stock equivalents		52		53
Adjusted weighted average shares outstanding - diluted		2,058		2,166
Basic earnings per share	$	0.41	$	0.34
Diluted earnings per share	$	0.40	$	0.33

For the three months ended September 30, 2014 and 2013, there were outstanding options to purchase 228,259 and 241,886 shares, respectively, at a weighted average exercise price of $14.68 and $13.25 per share, respectively. For the quarter ended September 30, 2014, 52,316 options, 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 September 30,
	2014			2013
	(In Thousands)
Average common shares issued		3,062			3,062
Average unearned ESOP shares		(154	)		(165	)
Average unearned RRP shares		(50	)		(64	)
Average treasury shares		(852	)		(720	)
Weighted average shares outstanding		2,006			2,113

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 adjusted for the exchange ratio of 0.9110 on December 22, 2010).  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 three months ended September 30, 2014, 561 shares vested and were released from the 2005 Recognition Plan Trust and 564 shares remained in the 2005 Recognition Plan Trust at September 30, 2014.

19

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.           Stock – Based Compensation (continued)

Recognition and Retention Plan (continued)

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.  During the three months ended September 30, 2014, 8,557 shares were awarded under the 2011 Recognition Plan and no shares are available for future awards. At September 30, 2014, 50,124 unvested awards 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 three months ended September 30, 2014, the Company recognized$57,000 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 (as adjusted for the exchange ratio).  Both incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan.  During the three months ended September 30, 2014, 2,133 options were granted under the 2005 Option Plan at an exercise price of $18.92. As of September 30, 2014, 37,543 options were outstanding under the 2005 Option Plan and none 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. During the three months ended September 30, 2014, 29,178 options were granted under the 2011 Option Plan at an exercise price of $18.92. As of September 30, 2014, 190,715 options were outstanding under the 2011 Option Plan and none 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 $2.8 million and $2.5 million at September 30, 2014 and June 30, 2014, respectively.

20

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

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.

21

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.           Fair Value Disclosures (continued)

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:

	September 30, 2014				June 30, 2014
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	4,794	$	4,794	$	13,633	$	13,633
Securities Available-for-Sale		55,494		55,494		48,434		48,434
Securities to be Held-to-Maturity		2,399		2,399		1,765		1,765
Loans Held-for-Sale		11,035		11,035		9,375		9,375
Loans Receivable		248,309		248,301		239,563		242,240
Financial Liabilities
Deposits		252,011		238,510		272,295		259,411
Advances from FHLB		43,589		43,574		12,897		13,266
Off-Balance Sheet Items
Mortgage Loan Commitments		319		319		349		349

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.  ASC 820 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.

22

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.           Fair Value Disclosures (continued)

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 September 30, 2014 and June 30, 2014 are as follows:

	Fair Value Measurements Using:
September 30, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	--	$	312	$	--	$	312
FNMA		--		34,512		--		34.512
GNMA		--		20,670		--		20,670
Total	$	--	$	55,494	$	--	$	55,494

	Fair Value Measurements Using:
June 30, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	--	$	323	$	--	$	323
FNMA		--		25,780		--		25,780
GNMA		--		22,331		--		22,331
Total	$	--	$	48,434	$	--	$	48,434

23

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.           Subsequent Events

In accordance with FASB ASC 855, Subsequent Events, 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 September 30, 2014.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

24

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, which became a wholly owned subsidiary upon completion of the second-step conversion and reorganization of the Bank on December 22, 2010. 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, four 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 September 30, 2014, the Bank opened its fifth full service banking office in Bossier City, Louisiana.

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, 2014 to September 30, 2014

General

At September 30, 2014, total assets amounted to $340.5 million compared to $329.5 million at June 30, 2014, an increase of approximately $11.0 million, or 3.3%. The increase in assets was comprised primarily of increases in investment securities of $7.7 million, or 15.3%, from $50.2 million at June 30, 2014, to $57.9 million at September 30, 2014, loans held-for-sale of $1.7 million, or 17.7%, from $9.4 million at June 30, 2014 to $11.0 million at September 30, 2014, and loans receivable net of $8.7 million, or 3.7%, from $239.6 million at June 30, 2014, to $248.3 million at September 30, 2014, partially offset by a decrease in cash and cash equivalents of $8.8 million, or 64.8%, from $13.6 million at June 30, 2014 to $4.8 million at September 30, 2014.

25

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Discussion of Financial Condition Changes from June 30, 2014 to September 30, 2014 (continued)

Cash and Cash Equivalents

Cashand cash equivalents decreased $8.8 million, or 64.8%, from $13.6 million at June 30, 2014 to $4.8 million at September 30, 2014. The $8.8 million decrease in cash and cash equivalents was due in large part to a single deposit relationship with a transitory deposit during the fourth quarter which had a balance of approximately $30.6 million at June 30, 2014, that was fully withdrawn at September 30, 2014.

Loans Receivable, Net

Loans receivable, net, increased by $8.7 million, or 3.7%, to $248.3 million at September 30, 2014 compared to $239.6 million at June 30, 2014.  During the three months ended September 30, 2014, our total loan originations amounted to $71.9 million compared to $54.6 million for the three months ended September 30, 2013.  The increase in loans receivable, net, was primarily due to increases in one- to four-family residential loans of $6.7 million, home equity lines of credit of $2.4 million, land loans of $2.6 million, commercial business loans of $1.3 million, residential construction loans of $861,000 and consumer loans of $45,000, partially offset by decreases in  multi-family residential loans of $4.4 million, commercial real estate loans of $712,000 and equity and second mortgage loans of $245,000.

Loans Held-for-Sale

Loans held-for-sale increased $1.7 million, or 17.7%, from $9.4 million at June 30, 2014 to $11.0 million at September 30, 2014.  The increase in loans held-for-sale results primarily from an increase at September 30, 2014 in receivables from financial institutions purchasing the Company’s loans held-for-sale and an increase in the origination volume during the first quarter of fiscal 2015.

Investment Securities

Investment securities amounted to $57.9 million at September 30, 2014 compared to $50.2 million at June 30, 2014, an increase of $7.7 million, or 15.3%. The increase in investment securities was primarily due to the acquisition of mortgage backed securities in the amount of $9.8 million, partially offset by principal payments on securities of $2.5 million.

Premises and Equipment, Net

Premises and equipment, net, increased $1.5 million, to $10.0 million at September 30, 2014, compared to $8.5 million at June 30, 2014, primarily due to the completion costs on a new branch location in Bossier City and the acquisition of real estate for a future branch location.

Asset Quality

At September 30, 2014, the Company had $108,000 of non-performing assets compared to $178,000 of non-performing assets at June 30, 2014, consisting of two single-family residential loans and one non-performing line of credit at September 30, 2014, compared to one single family residential loan and one non-performing line of credit at June 30, 2014. At September 30, 2014, the Company had one single family residential loan classified as substandard compared to none at June 30, 2014. The Company had one commercial loan secured by real estate classified as doubtful at September 30, 2014 in the amount of $64,000, one single-family residential loan classified as doubtful in the amount of $151,000 at June 30, 2014 and one line of credit classified as doubtful in the amount of $27,000 at both September 30, 2014and June 30, 2014.

26

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Discussion of Financial Condition Changes from June 30, 2014 to September 30, 2014 (continued)

Total Liabilities

Total liabilities increased $11.1 million, or 3.9%, from $286.8 million at June 30, 2014, to $297.8 million at September 30, 2014, primarily due to an increase in advances from the Federal Home Loan Bank in Dallas of $30.7 million, or 238.0%, to $43.6 million at September 30, 2014, compared to $12.9 million at June 30, 2014, partially offset by a decrease in total deposits of $20.3 million, or 7.4%, to $252.0 million at September 30, 2014, compared to $272.3 million at June 30, 2014.  The decrease in deposits was primarily due to a $27.0 million, or 37.4% decrease in money market deposits from $72.2 million at June 30, 2014 to $45.2 million at September 30, 2014, and a decrease in non-interest bearing demand deposits of $3.0 million, or 6.9%, from $43.4 million at June 30, 2014 to $40.4 million at September 30, 2014, partially offset by increases in certificates of deposit of $6.5 million, or 5.4%, from $120.4 million at June 30, 2014 to $126.9 million at September 30, 2014 and NOW accounts of $2.3 million, or 9.4%, from $24.0 million at June 30, 2014 to $26.3 million at September 30, 2014. The decrease in money market deposits was primarily due to a transitory deposit in the fourth quarter of fiscal 2014 which had a balance of approximately $30.6 million at June 30, 2014. The deposit was short-term in nature and was fully withdrawn as of September 30, 2014.  At both September 30, 2014 and June 30, 2014 the Company had $12.7 million in brokered deposits. 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 which have maturity dates greater than twelve months are callable by Home Federal Bank after twelve months pursuant to early redemption provisions.  The increase in advances from the Federal Home Loan Bank of Dallas was related to the $30.6 million withdrawal from a money market account as described above.

Shareholders’ Equity

Shareholders’ equity decreased $121,000, or 0.3%, to $42.7 million at September 30, 2014, from $42.8 million at June 30, 2014.  The primary reasons for the decrease in shareholders’ equity from June 30, 2014, were the acquisition of treasury stock in the amount of $756,000, a decrease in the Company’s accumulated other comprehensive income of $158,000, and dividends paid of $156,000.  These decreases were partially offset by net income of $823,000, the vesting of restricted stock awards, stock options and the release of employee stock ownership shares totaling $109,000, and proceeds from the issuance of common stock from the exercise of stock options of $17,000.  The Company’s book value per share increased from $19.08 at June 30, 2014 to $19.36 at September 30, 2014 based on shares outstanding of 2,241,967 and 2,203,442, respectively.

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At September 30, 2014, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements.

Comparison of Operating Results for the Three Month Periods Ended September 30, 2014 and 2013

General

Net income amounted to $823,000 for the three months ended September 30, 2014 compared to $713,000for the same period in 2013, an increase of $110,000 or 15.4%.  The increase was primarily due to a $274,000 or 10.1%, increase in net interest income, a $25,000 or 4.1%, increase in non-interest income, and a $26,000 or 39.4%, decrease in the provision for loan losses, partially offset by an increase of $155,000, or 7.1%, in non-interest expense and a $60,000 or 17.4%, increase in income tax expense for the 2014 period compared to the same period in 2013.

The increase in net interest income for the three months ended September 30, 2014 was primarily due to an increase in total interest income and a decrease in the Company’s cost of funds for the three months ended September 30, 2014, compared to the prior year period.  The increase in non-interest expense was primarily due to increases in compensation and benefit expense, loan and collection expense, data processing expense, advertising, occupancy and equipment expense and other non-interest expense, partially offset by decreases in legal fees, audit and examination fees, deposit insurance premiums and franchise and bank shares tax.

27

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three Month Periods Ended September 30, 2014 and 2013 (continued)

Net Interest Income

Net interest income for the three months ended September 30, 2014 was $3.0 million, an increase of $274,000, or 10.1%, in comparison to $2.7 million for the three months ended September 30, 2013.  This increase was primarily due to an increase of $224,000, or 6.7%, in total interest income and a decrease of $50,000 or 7.9%, in the Company’s cost of funds. The cost of funds from Federal Home Loan Bank borrowings decreased $3,000, or 6.3%, compared to the prior year three month period while interest paid on deposits decreased $40,000, or 7.0%, compared to the prior year three month period.

The Company’s average interest rate spread was 3.63% for the three months ended September 30, 2014, compared to 3.65% for the three months ended September 30, 2013.  The Company’s net interest margin was 3.83% for the three months ended September 30, 2014 compared to 3.91% for the three months ended September 30, 2013.  The decrease in net interest margin and average interest rate spread for the three month periods is attributable primarily to a higher volume of interest earning assets and decreasing interest rates.

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 $40,000 was made during the three months ended September 30, 2014, compared to a $66,000 provision made during the three months ended September 30, 2013. The allowance for loan losses was $2.3 million, or 0.91% of total loans receivable, at September 30, 2014 compared to $2.3 million, or 1.10%, of total loans receivable at September 30, 2013.  At September 30, 2014, Home Federal Bank had threenon-performing loans in the aggregate amount of $108,000 and noother non-performing assets or troubled-debt restructurings. At June 30, 2014, Home Federal had two non-performing loans in the amount of $178,000. 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 $629,000 for the three months ended September 30, 2014, an increase of $25,000 or 4.1% compared to $604,000 for the same period in 2013.  The increase was due to an increase of $26,000 in service charges on deposit accounts and $6,000 in other non-interest income, partially offset by decreases of $4,000 in gain on sale of loans and $3,000 in income on bank owned life insurance compared to the same period in 2013.

Non-interest Expense

Total non-interest expense increased $155,000, or 7.1%, for the three months ended September 30, 2014 compared to the prior year period.  The increase in non-interest expense was primarily due to increases of $118,000 in compensation and benefits expense, $34,000 in occupancy and equipment expense, $34,000 in loan collection expense, $11,000 in advertising expense, $4,000 in other non-interest expense and $4,000 in data processing expense.  These increases were partially offset by decreases of $24,000 in legal fees, $20,000 in franchise and bank shares tax, $4,000 in audit and examination fees, and $2,000 in deposit insurance premiums.

The increases in compensation and benefits expense were a result of normal compensation and benefits increases, including stock option 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 $157,000 for the three months ended September 30, 2014, compared to $143,000 for the three months ended September 30, 2013.

28

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three Month Periods Ended September 30, 2014 and 2013 (continued)

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings.  For the three months ended September 30, 2014, the Company recognized franchise and bank shares tax expense of $73,000 compared to $93,000 for the same period in 2013.

Income Taxes

Income taxes amounted to $404,000 for the three months ended September 30, 2014, resulting in an effective tax rate of 32.9%. Income taxes amounted to $344,000 for the three months ended September 30, 2013, resulting in an effective tax rate of 32.5%.  The increase in the effective income tax rate for the three months ended September 30, 2014, compared to the prior year period, is primarily the result of the effect of non-taxable income resulting in a 0.4% increase, in rate for the three months ended September 30, 2014.

Average Balances, Net Interest Income, Yields Earned and Rates Paid.  The following table shows 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 September 30,
	2014							2013
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Investment securities	$	53,820	$	245		1.82	%	$	55,312	$	277		2.00	%
Loans receivable		252,870		3,307		5.23			215,741		3,050		5.65
Interest-earning deposits		4,191		3		0.28			5,314		4		0.31
Total interest-earning assets		310,881		3,555		4.57			276,367		3,331		4.82
Non-interest-earning assets		22,595							19,241
Total assets	$	333,476						$	295,608
Interest-bearing liabilities:
Savings accounts		12,788		6		0.20			10,001		6		0.24
NOW accounts		26,227		45		0.69			25,535		68		1.06
Money market accounts		45,002		41		0.36			44,026		45		0.41
Certificate accounts		125,386		443		1.41			113,641		456		1.61
Total deposits		209,403		535		1.02			193,203		575		1.19
Other Borrowings		--		--		--			733		7		4.01
FHLB advances		36,608		45		0.49			21,864		48		0.88
Total interest-bearing liabilities		246,011		580		0.94	%		215,800		630		1.17	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		38,805							33,963
Other liabilities		2,278							1,601
Total liabilities		287,094							251,364
Total Stockholders’ Equity(1)		46,382							44,244
Total liabilities and equity	$	333,476						$	295,608
Net interest-earning assets	$	64,870						$	60,567
Net interest income; average interest rate spread(2)			$	2,975		3.63	%			$	2,701		3.65	%
Net interest margin(3)						3.83	%						3.91	%
Average interest-earning assets to average   interest-bearing liabilities						126.37	%						128.07	%

 __________________

(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.

29

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Comparison of Operating Results for the Three Month Periods Ended September 30, 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 $40,000 at September 30, 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 September 30, 2014, Home Federal Bank had $43.6 million in advances from the Federal Home Loan Bank of Dallas and had $106.4 million in additional borrowing capacity.  Additionally, at September 30, 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 $16.3 million. There were no amounts purchased under this agreement as of September 30, 2014.

At September 30, 2014, Home Federal Bank had outstanding loan commitments of $31.9 million to originate loans.  At September 30, 2014, certificates of deposit scheduled to mature in less than one year totaled $58.7 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.

At September 30, 2014, Home Federal Bank exceeded each of its regulatory capital requirements with tangible, core and risk-based capital ratios of 12.29%, 12.29% and 20.83%, respectively.

Off-Balance Sheet Arrangements

At September 30, 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.

30

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.

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 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 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.

31

HOME FEDERAL BANCORP, INC. OF LOUISIANA\

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 September 30, 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)
July 1, 2014 – July 31, 2014		31,000	$	18.83		31,000		74,772
August 1, 2014 – August 31, 2014		9,057		19.05		9,057		65,712
September 1, 2014 –September 30, 2014		--		--		--		65,715
Total		40,057	$	18.88		40,057		65,715

______________

Notes to this table:

(a) 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.

ITEM 3.                      DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.                      MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.                      OTHER INFORMATION

Not applicable.

ITEM 6.                      EXHIBITS

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

32

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:   November 10, 2014	By:	/s/Glen W. Brown
		Glen W. Brown Senior 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;

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: November 10, 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;

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: November 10, 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, Glen W. Brown, Senior 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;

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:  November 10, 2014

/s/Glen W. Brown

Glen W. Brown

Senior 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 September 30, 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:  November 10, 2014	/s/Daniel R. Herndon
	Name:  Daniel R. Herndon
	Title:    Chief Executive Officer
	(Co-Principal Executive Officer)

Date:  November 10, 2014	/s/James R. Barlow
	Name:  James R. Barlow
	Title:    President and Chief Operating Officer
	(Co-Principal Executive Officer)

Date:  November 10, 2014	/s/Glen W. Brown
	Name:  Glen W. Brown
	Title:    Senior 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

Earnings Per Share (Details) (USD $) In Thousands, except Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
Calculation of earnings per share [Abstract]
Net income	$ 823	$ 713
Weighted average shares outstanding - basic (in shares)	2,006,000	2,113,000
Effect of dilutive common stock equivalents (in shares)	52,000	53,000
Adjusted weighted average shares outstanding- diluted (in shares)	2,058,000	2,166,000
Basic earnings per share (in dollars per share)	$ 0.41	$ 0.34
Diluted earnings per share (in dollars per share)	$ 0.40	$ 0.33
Outstanding options to purchase shares (in shares)	228,259	241,886
Per share price of outstanding options (in dollars per share)	$ 14.68	$ 13.25
Components of average outstanding common shares [Abstract]
Average common shares issued (in shares)	3,062,000	3,062,000
Average unearned ESOP shares (in shares)	(154,000)	(165,000)
Average unearned RRP shares (in shares)	(50,000)	(64,000)
Average treasury shares (in shares)	(852,000)	(720,000)

XML

Securities, Schedule of Available-for-sale Securities (Details) (USD $)	3 Months Ended	12 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Available-for-sale, Debt Securities [Abstract]
Total	$ 55,473,000	$ 48,173,000
Debt Securities, Gross Unrealized Gain	749,000	875,000
Debt Securities, Gross Unrealized Loss	728,000	614,000
Debt Securities, Fair Value	55,494,000	48,434,000
Amortized Cost	55,473,000	48,173,000
Gross Unrealized Gains	749,000	875,000
Gross Unrealized Losses	728,000	614,000
Available-for-Sale Securities	55,494,000	48,434,000
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	239,000
After Five through Ten Years	152,000
Over Ten Years	55,082,000
Total	55,473,000	48,173,000
Other Equity Securities	0
Amortized Cost	55,473,000	48,173,000
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	246,000
After Five through Ten Years	157,000
Over Ten Years	55,091,000
Total	55,494,000	48,434,000
Other Equity Securities	0
Available-for-Sale Securities	55,494,000	48,434,000
Proceeds from sale of securities available-for-sale	0
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	91,000	24,000
Over Twelve Months	637,000	590,000
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	19,697,000	1,947,000
Over Twelve Months	22,471,000	22,193,000
FHLMC Mortgage-Backed Certificates [Member]
Available-for-sale, Debt Securities [Abstract]
Total	301,000	311,000
Debt Securities, Gross Unrealized Gain	11,000	12,000
Debt Securities, Gross Unrealized Loss	0	0
Debt Securities, Fair Value	312,000	323,000
Available-for-Sale, Amortized Cost [Abstract]
Total	301,000	311,000
Available-for-Sale, Fair Value [Abstract]
Total	312,000	323,000
FNMA Mortgage-Backed Certificates [Member]
Available-for-sale, Debt Securities [Abstract]
Total	33,901,000	24,947,000
Debt Securities, Gross Unrealized Gain	732,000	857,000
Debt Securities, Gross Unrealized Loss	121,000	24,000
Debt Securities, Fair Value	34,512,000	25,780,000
Available-for-Sale, Amortized Cost [Abstract]
Total	33,901,000	24,947,000
Available-for-Sale, Fair Value [Abstract]
Total	34,512,000	25,780,000
GNMA Mortgage-Backed Certificates [Member]
Available-for-sale, Debt Securities [Abstract]
Total	21,271,000	22,915,000
Debt Securities, Gross Unrealized Gain	6,000	6,000
Debt Securities, Gross Unrealized Loss	607,000	590,000
Debt Securities, Fair Value	20,670,000	22,331,000
Available-for-Sale, Amortized Cost [Abstract]
Total	21,271,000	22,915,000
Available-for-Sale, Fair Value [Abstract]
Total	20,670,000	22,331,000
Debt Securities [Member] | Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	91,000	24,000
Over Twelve Months	637,000	590,000
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	19,697,000	1,947,000
Over Twelve Months	22,471,000	22,193,000
Marketable Equity Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	0
Over Twelve Months	0	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	0	0
Over Twelve Months	$ 0	$ 0

XML

Fair Value Disclosures, Recurring (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
Available for sale debt securities [Abstract]
Available-for-Sale Securities	$ 55,494	$ 48,434
Recurring [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage-Backed Certificates	312	323
FNMA Mortgage-Backed Certificates	34,512	25,780
GNMA Mortgage-Backed Certificates	20,670	22,331
Available-for-Sale Securities	55,494	48,434
Recurring [Member] | 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
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Available for sale debt securities [Abstract]
FHLMC Mortgage-Backed Certificates	312	323
FNMA Mortgage-Backed Certificates	34,512	25,780
GNMA Mortgage-Backed Certificates	20,670	22,331
Available-for-Sale Securities	55,494	48,434
Recurring [Member] | Unobservable Inputs (Level 3) [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

XML

Summary of Accounting Policies

3 Months Ended

Sep. 30, 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 three month period ended September 30, 2014, is not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2015.

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 September 30, 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 five 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 September 30, 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 meaningful 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.

Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.   ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted.  The Company’s current accounting treatment of performance conditions for employees who are or become eligible prior to the achievement of the performance target are consistent with ASU 2014-12, and as such does not expect the new guidance to have a material effect on the Corporation's financial condition and results of operations.  The Company expects to prospectively adopt ASU 2014-12 in the first quarter of 2015.

XML

Loans Receivable, Aging Analysis of Past Due Loans (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	$ 1,138	$ 1,585
60-89 Days Past Due	923	435
Greater than 90 Days	108	191
Total Past Due	2,169	2,211
Current	248,651	240,046
Total Loans Receivable	250,820	242,257	209,434
Recorded Investment > 90 Days and Accruing	68	13
One-to-Four Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
30-59 Days Past Due	1,138	1,326
60-89 Days Past Due	923	435
Greater than 90 Days	81	164
Total Past Due	2,142	1,925
Current	94,137	87,620
Total Loans Receivable	96,279	89,545
Recorded Investment > 90 Days and Accruing	68	13
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	55,554	56,266
Total Loans Receivable	55,554	56,266	50,310
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	15,967	20,368
Total Loans Receivable	15,967	20,368	19,567
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	22,513	19,945
Total Loans Receivable	22,513	19,945	15,317
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	13,366	12,505
Total Loans Receivable	13,366	12,505	16,152
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	2,318	2,563
Total Loans Receivable	2,318	2,563
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	0	0
60-89 Days Past Due	0	0
Greater than 90 Days	27	27
Total Past Due	27	27
Current	17,353	14,923
Total Loans Receivable	17,380	14,950
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	259
60-89 Days Past Due	0	0
Greater than 90 Days	0	0
Total Past Due	0	259
Current	27,032	25,490
Total Loans Receivable	27,032	25,749	17,176
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	411	366
Total Loans Receivable	411	366	368
Recorded Investment > 90 Days and Accruing	$ 0	$ 0

XML

Loans Receivable, Credit Quality Indicators (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014	Sep. 30, 2013
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 250,820	$ 242,257	$ 209,434
One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	96,279	89,545
Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	55,554	56,266	50,310
Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	15,967	20,368	19,567
Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	22,513	19,945	15,317
Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,366	12,505	16,152
Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,318	2,563
Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	17,380	14,950
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	27,032	25,749	17,176
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	411	366	368
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	250,048	239,385
Pass [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	96,151	89,345
Pass [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	54,937	53,621
Pass [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	15,967	20,368
Pass [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	22,513	19,945
Pass [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13,366	12,505
Pass [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,318	2,563
Pass [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	17,353	14,923
Pass [Member] | Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	27,032	25,749
Pass [Member] | Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	411	366
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	668	2,694
Special Mention [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	115	49
Special Mention [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	553	2,645
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	0	0
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	13	0
Substandard [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	13	0
Substandard [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
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	0
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	91	178
Doubtful [Member] | One-to-Four Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	151
Doubtful [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	64	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

XML

Loans Receivable, Allowance for Loan Losses and Recorded Investment in Loans (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Allowance for loan losses [Abstract]
Beginning Balances	$ 2,396	$ 2,240	$ 2,240
Charge-Offs	(151)	0	(12)
Recoveries	0	0	0
Current Provision	40	66	168
Ending Balances	2,285	2,306	2,396
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	2,285	2,306	2,396
Loans Receivable [Abstract]
Ending Balances - Total	250,820	209,434	242,257
Evaluated for Impairment, Ending Balances [Abstract]
Individually	772	5,317	2,872
Collectively	250,048	204,117	239,385
Real Estate Loans - 1-4 Family Residential [Member]
Allowance for loan losses [Abstract]
Beginning Balances	1,224	1,023	1,023
Charge-Offs	(151)	0	0
Recoveries	0	0	0
Current Provision	96	94	201
Ending Balances	1,169	1,117	1,224
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	1,169	1,117	1,224
Loans Receivable [Abstract]
Ending Balances - Total	96,279	76,379	89,545
Evaluated for Impairment, Ending Balances [Abstract]
Individually	128	565	200
Collectively	96,151	75,814	89,345
Real Estate Loans - Commercial [Member]
Allowance for loan losses [Abstract]
Beginning Balances	464	338	338
Charge-Offs	0	0	0
Recoveries	0	0	0
Current Provision	(108)	74	126
Ending Balances	356	412	464
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	356	412	464
Loans Receivable [Abstract]
Ending Balances - Total	55,554	50,310	56,266
Evaluated for Impairment, Ending Balances [Abstract]
Individually	617	1,699	2,645
Collectively	54,937	48,611	53,621
Real Estate Loans - Multi Family [Member]
Allowance for loan losses [Abstract]
Beginning Balances	128	103	103
Charge-Offs	0	0	0
Recoveries	0	0	0
Current Provision	(56)	(13)	25
Ending Balances	72	90	128
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	72	90	128
Loans Receivable [Abstract]
Ending Balances - Total	15,967	19,567	20,368
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0
Collectively	15,967	19,567	20,368
Real Estate Loans - Land [Member]
Allowance for loan losses [Abstract]
Beginning Balances	168	127	127
Charge-Offs	0	0	0
Recoveries	0	0	0
Current Provision	12	2	41
Ending Balances	180	129	168
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	180	129	168
Loans Receivable [Abstract]
Ending Balances - Total	22,513	15,317	19,945
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0
Collectively	22,513	15,317	19,945
Real Estate Loans - Construction [Member]
Allowance for loan losses [Abstract]
Beginning Balances	105	146	146
Charge-Offs	0	0	0
Recoveries	0	0	0
Current Provision	22	(17)	(41)
Ending Balances	127	129	105
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	127	129	105
Loans Receivable [Abstract]
Ending Balances - Total	13,366	16,152	12,505
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0
Collectively	13,366	16,152	12,505
Real Estate Loans - Home Equity Loans and Lines of Credit [Member]
Allowance for loan losses [Abstract]
Beginning Balances	99	85	85
Charge-Offs	0	0	(12)
Recoveries	0	0	0
Current Provision	29	(5)	26
Ending Balances	128	80	99
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	128	80	99
Loans Receivable [Abstract]
Ending Balances - Total	19,698	14,165	17,513
Evaluated for Impairment, Ending Balances [Abstract]
Individually	27	116	27
Collectively	19,671	14,049	17,486
Commercial Loans [Member]
Allowance for loan losses [Abstract]
Beginning Balances	202	412	412
Charge-Offs	0	0	0
Recoveries	0	0	0
Current Provision	45	(71)	(210)
Ending Balances	247	341	202
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	247	341	202
Loans Receivable [Abstract]
Ending Balances - Total	27,032	17,176	25,749
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	2,937	0
Collectively	27,032	14,239	25,749
Consumer Loans [Member]
Allowance for loan losses [Abstract]
Beginning Balances	6	6	6
Charge-Offs	0	0	0
Recoveries	0	0	0
Current Provision	0	2	0
Ending Balances	6	8	6
Evaluated for Impairment [Abstract]
Individually	0	0	0
Collectively	6	8	6
Loans Receivable [Abstract]
Ending Balances - Total	411	368	366
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0
Collectively	$ 411	$ 368	$ 366

XML

Loans Receivable, Loans Individually Evaluated for Impairment (Details) (USD $)	3 Months Ended		12 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	$ 772,000		$ 2,872,000
Recorded Investment With No Allowance	772,000		2,872,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	772,000		2,872,000
Related Allowance	0		0
Average Recorded Investment	822,000		2,904,000
Loan receivables on non-accrual loans	0		0
Estimated gross interest income	0	3,000
Real Estate Loans - One-to-Four Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	128,000		200,000
Recorded Investment With No Allowance	128,000		200,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	128,000		200,000
Related Allowance	0		0
Average Recorded Investment	137,000		216,000
Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	617,000		2,645,000
Recorded Investment With No Allowance	617,000		2,645,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	617,000		2,645,000
Related Allowance	0		0
Average Recorded Investment	658,000		2,661,000
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	27,000		27,000
Recorded Investment With No Allowance	27,000		27,000
Recorded Investment With Allowance	0		0
Total Recorded Investment	27,000		27,000
Related Allowance	0		0
Average Recorded Investment	27,000		27,000
Commercial 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
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

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 823	$ 713
Adjustments to Reconcile Net Income to Net Cash Used in Operating Activities
Net Amortization and Accretion on Securities	3	18
Gain on Sale of Loans	(472)	(476)
Amortization of Deferred Loan Fees	(76)	(18)
Depreciation of Premises and Equipment	84	69
ESOP Expense	56	49
Stock Option Expense	44	41
Recognition and Retention Plan Expense	57	53
Deferred Income Tax	29	(17)
Provision for Loan Losses	40	66
Increase in Cash Surrender Value on Bank Owned Life Insurance	(41)	(44)
Changes in Assets and Liabilities:
Loans Held-for-Sale-Originations and Purchases	(23,062)	(20,378)
Loans Held-for-Sale - Sale and Principal Repayments	21,874	18,341
Accrued Interest Receivable	(21)	(4)
Other Operating Assets	(40)	46
Other Operating Liabilities	435	419
Net Cash Used In Operating Activities	(267)	(1,122)
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections	(8,714)	(849)
Deferred Loan Fees Collected	4	17
Acquisition of Premises and Equipment	(1,624)	(445)
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities	2,540	3,401
Purchases of Securities	(9,843)	(8,798)
Activity in Held-to-Maturity Securities:
Redemption Proceeds	128	0
Purchases of Securities	(762)	(134)
Net Cash Used in Investing Activities	(18,271)	(6,808)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease) Increase in Deposits	(20,284)	20,603
Proceeds from Federal Home Loan Bank Advances	349,750	217,750
Repayments of Advances from Federal Home Loan Bank	(319,058)	(223,879)
Net Increase in Advances from Borrowers for Taxes and Insurance	186	115
Dividends Paid	(156)	(141)
Acquisition of Treasury Stock	(756)	(473)
Proceeds from Stock Options Exercised	17	245
Proceeds from other Bank Borrowings	0	300
Net Cash Provided by Financing Activities	9,699	14,520
NET (DECREASE) INCREASE IN CASH AND CASH EQUIVALENTS	(8,839)	6,590
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	13,633	3,685
CASH AND CASH EQUIVALENTS - END OF PERIOD	4,794	10,275
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	571	636
Income Taxes Paid	1	0
Market Value Adjustment for Loss on Securities Available-for-Sale	$ (240)	$ (397)

XML

Deposits (Details) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
Amount [Abstract]
Non-Interest Bearing	$ 40,433	$ 43,447
NOW Accounts	26,278	24,015
Money Markets	45,198	72,240
Passbook Savings	13,195	12,165
Deposits in transaction accounts	125,104	151,867
Certificates of Deposit	126,907	120,428
Total Deposits	$ 252,011	$ 272,295

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (USD $) In Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $1,859 and $9,317 for September 30, 2014 and June 30, 2014, Respectively)	$ 4,794	$ 13,633
Securities Available-for-Sale	55,494	48,434
Securities Held-to-Maturity	2,399	1,765
Loans Held-for-Sale	11,035	9,375
Loans Receivable, Net of Allowance for Loan Losses of $2,285 and $2,396, Respectively	248,309	239,563
Accrued Interest Receivable	987	965
Premises and Equipment, Net	9,994	8,454
Bank Owned Life Insurance	6,244	6,203
Deferred Tax Asset	776	723
Other Assets	453	414
Total Assets	340,485	329,529
LIABILITIES
Deposits	252,011	272,295
Advances from Borrowers for Taxes and Insurance	615	428
Advances from Federal Home Loan Bank of Dallas	43,589	12,897
Other Accrued Expenses and Liabilities	1,612	1,130
Total Liabilities	297,827	286,750
STOCKHOLDERS' EQUITY
Preferred Stock - 10,000,000 Shares of $.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 2,203,442 Shares Outstanding at September 30, 2014; 2,241,967 Shares Outstanding at June 30, 2014	34	34
Additional Paid-in Capital	32,940	32,853
Treasury Stock, at Cost - 858,944 shares at September 30, 2014; 820,419 at June 30, 2014	(16,454)	(15,698)
Unearned ESOP Stock	(1,532)	(1,561)
Unearned RRP Trust Stock	(599)	(609)
Retained Earnings	28,255	27,588
Accumulated Other Comprehensive Income	14	172
Total Stockholders' Equity	42,658	42,779
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 340,485	$ 329,529

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Tax on unrealized holding gain (loss) on securities available-for-sale	$ 81	$ 135

XML

Related Party Transactions (Details) (USD $) In Millions, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
Related Party Transactions [Abstract]
Loan made to directors and executive officers	$ 2.8	$ 2.5

XML

Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2014

Earnings Per Share [Abstract]

Calculation of earnings per share

Earnings per share for the three months ended September 30, 2014 and 2013 were calculated as follows:

	Three Months Ended September 30,
	2014		2013
	(In Thousands, Except Per Share Data)
Net income	$	823	$	713
Weighted average shares outstanding - basic		2,006		2,113
Effect of dilutive common stock equivalents		52		53
Adjusted weighted average shares outstanding - diluted		2,058		2,166
Basic earnings per share	$	0.41	$	0.34
Diluted earnings per share	$	0.40	$	0.33

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 September 30,
	2014			2013
	(In Thousands)
Average common shares issued		3,062			3,062
Average unearned ESOP shares		(154	)		(165	)
Average unearned RRP shares		(50	)		(64	)
Average treasury shares		(852	)		(720	)
Weighted average shares outstanding		2,006			2,113

XML

Fair Value Disclosures (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Jun. 30, 2014
Mortgage Loans Held-for-Sale [Abstract]
Number of days from origination to dispose Mortgage Loans Held-for-Sale, maximum	90 days
Financial Assets [Abstract]
Securities Available-for-Sale	$ 55,494	$ 48,434
Securities to be Held-to-Maturity	2,399	1,765
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	4,794	13,633
Securities Available-for-Sale	55,494	48,434
Securities to be Held-to-Maturity	2,399	1,765
Loans Held-for-Sale	11,035	9,375
Loans Receivable	248,309	239,563
Financial Liabilities [Abstract]
Deposits	252,011	272,295
Advances from FHLB	43,589	12,897
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	319	349
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	4,794	13,633
Securities Available-for-Sale	55,494	48,434
Securities to be Held-to-Maturity	2,399	1,765
Loans Held-for-Sale	11,035	9,375
Loans Receivable	248,301	242,240
Financial Liabilities [Abstract]
Deposits	238,510	259,411
Advances from FHLB	43,574	13,266
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 319	$ 349

XML

Summary of Accounting Policies (Details)	3 Months Ended
	Sep. 30, 2014
Cash and Cash Equivalents [Abstract]
Cash and cash equivalents maturity period maximum	90 days

XML

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, 2013	$ 32	$ 32,218	$ (1,676)	$ (863)	$ 25,395	$ (13,168)	$ 44	$ 41,982
Net Income	0	0	0	0	713	0	0	713
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	0	(262)	(262)
RRP Shares Earned	0	0	0	10	0	0	0	10
Stock Options Vested	0	41	0	0	0	0	0	41
Common Stock Issuance for Stock Option Exercises	1	245	0	0	0	0	0	246
ESOP Compensation Earned	0	21	28	0	0	0	0	49
Acquisition of Treasury Stock	0	0	0	0	0	(473)	0	(473)
Dividends Declared	0	0	0	0	(141)	0	0	(141)
Ending Balance at Sep. 30, 2013	33	32,525	(1,648)	(853)	25,967	(13,641)	(218)	42,165
Beginning Balance at Jun. 30, 2014	34	32,853	(1,561)	(609)	27,588	(15,698)	172	42,779
Net Income	0	0	0	0	823	0	0	823
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	0	(158)	(158)
RRP Shares Earned	0	0	0	10	0	0	0	10
Stock Options Vested	0	43	0	0	0	0	0	43
Common Stock Issuance for Stock Option Exercises	0	17	0	0	0	0	0	17
ESOP Compensation Earned	0	27	29	0	0	0	0	56
Acquisition of Treasury Stock	0	0	0	0	0	(756)	0	(756)
Dividends Declared	0	0	0	0	(156)	0	0	(156)
Ending Balance at Sep. 30, 2014	$ 34	$ 32,940	$ (1,532)	$ (599)	$ 28,255	$ (16,454)	$ 14	$ 42,658

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) (USD $) In Thousands, except Share data, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
ASSETS
Interest-Bearing Deposits with Other Banks	$ 1,859	$ 9,317
Loans Receivable, Net of Allowance for Loan Losses	$ 2,285	$ 2,396
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
Common Stock, outstanding (in shares)	2,203,442	2,241,967
Treasury Stock (in shares)	858,944	820,419

XML

Subsequent Events

3 Months Ended

Sep. 30, 2014

Subsequent Events [Abstract]

Subsequent Events

9.Subsequent Events

In accordance with FASB ASC 855, Subsequent Events, 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 September 30, 2014.  In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.

XML

Document and Entity Information	3 Months Ended
	Sep. 30, 2014	Nov. 07, 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		2,198,442
Document Fiscal Year Focus	2015
Document Fiscal Period Focus	Q1
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2014

XML

Summary of Accounting Policies (Policies)

3 Months Ended

Sep. 30, 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 three month period ended September 30, 2014, is not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2015.

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 September 30, 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 five 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 September 30, 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 meaningful 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.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method.  This ASU is not expected to have a significant impact on the Company’s financial statements.

In June 2014, the FASB issued ASU No. 2014-12, Compensation-Stock Compensation (Topic 718), Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  The new guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.   ASU 2014-12 is effective for annual and interim periods beginning after December 15, 2015, with early adoption permitted.  The Company’s current accounting treatment of performance conditions for employees who are or become eligible prior to the achievement of the performance target are consistent with ASU 2014-12, and as such does not expect the new guidance to have a material effect on the Corporation's financial condition and results of operations.  The Company expects to prospectively adopt ASU 2014-12 in the first quarter of 2015.

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (USD $) In Thousands, except Per Share data, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
INTEREST INCOME
Loans, Including Fees	$ 3,307	$ 3,050
Investment Securities	1	1
Mortgage-Backed Securities	244	276
Other Interest-Earning Assets	3	4
Total Interest Income	3,555	3,331
INTEREST EXPENSE
Deposits	535	575
Federal Home Loan Bank Borrowings	45	48
Other Bank Borrowings	0	7
Total Interest Expense	580	630
Net Interest Income	2,975	2,701
PROVISION FOR LOAN LOSSES	40	66
Net Interest Income after Provision for Loan Losses	2,935	2,635
NON-INTEREST INCOME
Gain on Sale of Loans	472	476
Income on Bank Owned Life Insurance	41	44
Service Charges on deposit accounts	101	75
Other Income	15	9
Total Non-Interest Income	629	604
NON-INTEREST EXPENSE
Compensation and Benefits	1,502	1,384
Occupancy and Equipment	229	195
Data Processing	119	115
Audit and Examination Fees	53	57
Franchise and Bank Shares Tax	73	93
Advertising	75	64
Legal Fees	69	93
Loan and Collection	66	32
Deposit Insurance Premium	31	33
Other Expense	120	116
Total Non-Interest Expense	2,337	2,182
Income Before Income Taxes	1,227	1,057
PROVISION FOR INCOME TAX EXPENSE	404	344
Net Income	$ 823	$ 713
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.41	$ 0.34
Diluted (in dollars per share)	$ 0.40	$ 0.33
DIVIDENDS DECLARED (in dollars per share)	$ 0.07	$ 0.06

XML

Deposits

3 Months Ended

Sep. 30, 2014

Deposits [Abstract]

Deposits

4. Deposits

Deposits at September 30, 2014 and June 30, 2014 consist of the following classifications:

	September 30, 2014		June 30, 2014
	(In Thousands)
Non-Interest Bearing	$	40,433	$	43,447
NOW Accounts		26,278		24,015
Money Markets		45,198		72,240
Passbook Savings		13,195		12,165
		125,104		151,867
Certificates of Deposit		126,907		120,428
Total Deposits	$	252,011	$	272,295

XML

Loans Receivable

3 Months Ended

Sep. 30, 2014

Loans Receivable [Abstract]

Loans Receivable

3.Loans Receivable

Loans receivable are summarized as follows:

	September 30, 2014			June 30, 2014
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One- to Four-Family Residential	$	96,279		$	89,545
Commercial		55,554			56,266
Multi-Family Residential		15,967			20,368
Land		22,513			19,945
Construction		13,366			12,505
Equity and Second Mortgage		2,318			2,563
Equity Lines of Credit		17,380			14,950
Total Mortgage Loans		223,377			216,142
Commercial Loans		27,032			25,749
Consumer Loans
Loans on Savings Accounts		304			255
Automobile and Other Consumer Loans		107			111
Total Consumer and Other Loans		411			366
Total Loans		250,820			242,257
Less:   Allowance for Loan Losses		(2,285	)		(2,396	)
Unamortized Loan Fees		(226	)		(298	)
Net Loans Receivable	$	248,309		$	239,563

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

	Three Months Ended September 30,
	2014			2013
	(In Thousands)
Balance - Beginning of Period	$	2,396		$	2,240
Provision for Loan Losses		40			66
Loan Charge-Offs		(151	)		--
Balance - End of Period	$	2,285		$	2,306

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 September 30, 2014 and June 30, 2014:

September 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	96,151	$	115	$	13	$	--	$	96,279
Commercial		54,937		553		--		64		55,554
Multi-Family Residential		15,967		--		--		--		15,967
Land		22,513		--		--		--		22,513
Construction		13,366		--		--		--		13,366
Equity and Second Mortgage		2,318		--		--		--		2,318
Equity Lines of Credit		17,353		--		--		27		17,380
Commercial Loans		27,032		--		--		--		27,032
Consumer Loans		411		--		--		--		411
Total	$	250,048	$	668	$	13	$	91	$	250,820

June 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	89,345	$	49	$	--	$	151	$	89,545
Commercial		53,621		2,645		--		--		56,266
Multi-Family Residential		20,368		--		--		--		20,368
Land		19,945		--		--		--		19,945
Construction		12,505		--		--		--		12,505
Equity and Second Mortgage		2,563		--		--		--		2,563
Equity Lines of Credit		14,923		--		--		27		14,950
Commercial Loans		25,749		--		--		--		25,749
Consumer Loans		366		--		--		--		366
Total	$	239,385	$	2,694	$	--	$	178	$	242,257

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 September 30, 2014 and June 30, 2014:

September 30, 2014	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
							Past Due
	(In Thousands)
Real Estate Loans:
One- to Four-Family	$	1,138	$	923	$	81	$	2,142	$	94,137	$	96,279	$	68
Residential
Commercial		--		--		--		--		55,554		55,554		--
Multi-Family Residential		--		--		--		--		15,967		15,967		--
Land		--		--		--		--		22,513		22,513		--
Construction		--		--		--		--		13,366		13,366		--
Equity and Second Mortgage		--		--		--		--		2,318		2,318		--
Equity Lines of Credit		--		--		27		27		17,353		17,380		--
Commercial Loans		--		--		--		--		27,032		27,032		--
Consumer Loans		--		--		--		--		411		411		--
Total	$	1,138	$	923	$	108	$	2,169	$	248,651	$	250,820	$	68

June 30, 2014	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	$	1,326	$	435	$	164	$	1,925	$	87,620	$	89,545	$	13
Commercial		--		--		--		--		56,266		56,266		--
Multi-Family Residential		--		--		--		--		20,368		20,368		--
Land		--		--		--		--		19,945		19,945		--
Construction		--		--		--		--		12,505		12,505		--
Equity and Second Mortgage		--		--		--		--		2,563		2,563		--
Equity Lines of Credit		--		--		27		27		14,923		14,950		--
Commercial Loans		259		--		--		259		25,490		25,749		--
Consumer Loans		--		--		--		--		366		366		--
Total	$	1,585	$	435	$	191	$	2,211	$	240,046	$	242,257	$	13

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 September 30, 2014 or June 30, 2014.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2014 was as follows:

	Real Estate Loans
September 30, 2014	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	$	1,224		$	464		$	128		$	168	$	105	$	99	$	202	$	6	$	2,396
Charge-Offs		(151	)		--			--			--		--		--		--		--		(151	)
Recoveries		--			--			--			--		--		--		--		--		--
Current Provision		96			(108	)		(56	)		12		22		29		45		--		40
Ending Balances	$	1,169		$	356		$	72		$	180	$	127	$	128	$	247	$	6	$	2,285
Evaluated for Impairment:
Individually		--			--			--			--		--		--		--		--		--
Collectively		1,169			356			72			180		127		128		247		6		2,285
Loans Receivable:
Ending Balances – Total	$	96,279		$	55,554		$	15,967		$	22,513	$	13,366	$	19,698	$	27,032	$	411	$	250,820
Ending Balances:
Evaluated for Impairment:
Individually		128			617			--			--		--		27		--		--		772
Collectively	$	96,151		$	54,937		$	15,967		$	22,513	$	13,366	$	19,671	$	27,032	$	411	$	250,048

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

	Real Estate Loans
June 30, 2014	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	$	1,023	$	338	$	103	$	127	$	146		$	85		$	412		$	6	$	2,240
Charge-Offs		--		--		--		--		--			(12	)		--			--		(12	)
Recoveries		--		--		--		--		--			--			--			--		--
Current Provision		201		126		25		41		(41	)		26			(210	)		--		168
Ending Balances	$	1,224	$	464	$	128	$	168	$	105		$	99		$	202		$	6	$	2,396
Evaluated for Impairment:
Individually		--		--		--		--		--			--			--			--		--
Collectively		1,224		464		128		168		105			99			202			6		2,396
Loans Receivable:
Ending Balances - Total	$	89,545	$	56,266	$	20,368	$	19,945	$	12,505		$	17,513		$	25,749		$	366	$	242,257
Ending Balances:
Evaluated for Impairment:
Individually		200		2,645		--		--		--			27			--			--		2,872
Collectively	$	89,345	$	53,621	$	20,368	$	19,945	$	12,505		$	17,486		$	25,749		$	366	$	239,385

	Real Estate Loans
September 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	$	1,023	$	338	$	103		$	127	$	146		$	85		$	412		$	6	$	2,240
Charge-Offs		--		--		--			--		--			--			--			--		--
Recoveries		--		--		--			--		--			--			--			--		--
Current Provision		94		74		(13	)		2		(17	)		(5	)		(71	)		2		66
Ending Balances	$	1,117	$	412	$	90		$	129	$	129		$	80		$	341		$	8	$	2,306
Evaluated for Impairment:
Individually		--		--		--			--		--			--			--			--		--
Collectively		1,117		412		90			129		129			80			341			8		2,306
Loans Receivable:
Ending Balances - Total	$	76,379	$	50,310	$	19,567		$	15,317	$	16,152		$	14,165		$	17,176		$	368	$	209,434
Ending Balances:
Evaluated for Impairment:
Individually		565		1,699		--			--		--			116			2,937			--		5,317
Collectively	$	75,814	$	48,611	$	19,567		$	15,317	$	16,152		$	14,049		$	14,239		$	368	$	204,117

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

September 30, 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	$	128	$	128	$	--	$	128	$	--	$	137
Commercial		617		617		--		617		--		658
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		27		27		--		27		--		27
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	772	$	772	$	--	$	772	$	--	$	822

June 30, 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	$	200	$	200	$	--	$	200	$	--	$	216
Commercial		2,645		2,645		--		2,645		--		2,661
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		27		27		--		27		--		27
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	2,872	$	2,872	$	--	$	2,872	$	--	$	2,904

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status.

There was no interest income recognized on non-accrual loans during the three months ended September 30, 2014 or year ended June 30, 2014. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the three months ended September 30, 2014 and year ended June 30, 2014 was $0 and $3,000, respectively.

XML

Fair Value Disclosures (Tables)

3 Months Ended

Sep. 30, 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:

	September 30, 2014				June 30, 2014
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	4,794	$	4,794	$	13,633	$	13,633
Securities Available-for-Sale		55,494		55,494		48,434		48,434
Securities to be Held-to-Maturity		2,399		2,399		1,765		1,765
Loans Held-for-Sale		11,035		11,035		9,375		9,375
Loans Receivable		248,309		248,301		239,563		242,240
Financial Liabilities
Deposits		252,011		238,510		272,295		259,411
Advances from FHLB		43,589		43,574		12,897		13,266
Off-Balance Sheet Items
Mortgage Loan Commitments		319		319		349		349

Fair values of assets and liabilities measured on a recurring basis

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

	Fair Value Measurements Using:
September 30, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	--	$	312	$	--	$	312
FNMA		--		34,512		--		34.512
GNMA		--		20,670		--		20,670
Total	$	--	$	55,494	$	--	$	55,494

	Fair Value Measurements Using:
June 30, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	--	$	323	$	--	$	323
FNMA		--		25,780		--		25,780
GNMA		--		22,331		--		22,331
Total	$	--	$	48,434	$	--	$	48,434

XML

Securities (Tables)

3 Months Ended

Sep. 30, 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:

	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	301	$	11	$	--	$	312
FNMA Mortgage-Backed Certificates		33,901		732		121		34,512
GNMA Mortgage-Backed Certificates		21,271		6		607		20,670
Total Debt Securities		55,473		749		728		55,494
Total Securities Available-for-Sale	$	55,473	$	749	$	728	$	55,494
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
21,487Shares – Federal Home Loan Bank	$	2,149	$	--	$	--	$	2,149
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,399		--		--		2,399
Total Securities Held-to-Maturity	$	2,399	$	--	$	--	$	2,399

	June 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	311	$	12	$	--	$	323
FNMA Mortgage-Backed Certificates		24,947		857		24		25,780
GNMA Mortgage-Backed Certificates		22,915		6		590		22,331
Total Debt Securities		48,173		875		614		48,434
Total Securities Available-for-Sale	$	48,173	$	875	$	614	$	48,434
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
15,145 Shares – Federal Home Loan Bank	$	1,515	$	--	$	--	$	1,515
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,765		--		--		1,765
Total Securities Held-to-Maturity	$	1,765	$	--	$	--	$	1,765

Amortized cost and fair value of debt securities by contractual maturity

The amortized cost and fair value of securities by contractual maturity at September 30, 2014, follows:

	Available-for-Sale						Held-to-Maturity
	Amortized Cost			Fair Value			Amortized Cost			Fair Value
	(In Thousands)
Debt Securities
Within One Year or Less		$	--		$	--		$	--		$	--
One through Five Years			239			246			--			--
After Five through Ten Years			152			157			--			--
Over Ten Years			55,082			55,091			--			--
			55,473			55,494			--			--
Other Equity Securities			--			--			2,399			2,399
Total		$	55,473		$	55,494		$	2,399		$	2,399

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 September 30, 2014 and June 30, 2014 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 2014
	Less Than Twelve Months				Over Twelve Months
	GrossUnrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	91	$	19,697	$	637	$	22,471
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	91	$	19,697	$	637	$	22,471

	June 30, 2014
	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	24	$	1,947	$	590	$	22,193
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	24	$	1,947	$	590	$	22,193

XML

Related Party Transactions

3 Months Ended

Sep. 30, 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 $2.8 million and $2.5 million at September 30, 2014 and June 30, 2014, respectively.

XML

Earnings Per Share

3 Months Ended

Sep. 30, 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 months ended September 30, 2014 and 2013 were calculated as follows:

	Three Months Ended September 30,
	2014		2013
	(In Thousands, Except Per Share Data)
Net income	$	823	$	713
Weighted average shares outstanding - basic		2,006		2,113
Effect of dilutive common stock equivalents		52		53
Adjusted weighted average shares outstanding - diluted		2,058		2,166
Basic earnings per share	$	0.41	$	0.34
Diluted earnings per share	$	0.40	$	0.33

For the three months ended September 30, 2014 and 2013, there were outstanding options to purchase 228,259 and 241,886 shares, respectively, at a weighted average exercise price of $14.68 and $13.25 per share, respectively. For the quarter ended September 30, 2014, 52,316 options, 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 September 30,
	2014			2013
	(In Thousands)
Average common shares issued		3,062			3,062
Average unearned ESOP shares		(154	)		(165	)
Average unearned RRP shares		(50	)		(64	)
Average treasury shares		(852	)		(720	)
Weighted average shares outstanding		2,006			2,113

XML

Stock-Based Compensation

3 Months Ended

Sep. 30, 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 adjusted for the exchange ratio of 0.9110 on December 22, 2010).  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 three months ended September 30, 2014, 561 shares vested and were released from the 2005 Recognition Plan Trust and 564 shares remained in the 2005 Recognition Plan Trust at September 30, 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.  During the three months ended September 30, 2014, 8,557 shares were awarded under the 2011 Recognition Plan and no shares are available for future awards. At September 30, 2014, 50,124 unvested awards 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 three months ended September 30, 2014, the Company recognized$57,000 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 (as adjusted for the exchange ratio).  Both incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan.  During the three months ended September 30, 2014, 2,133 options were granted under the 2005 Option Plan at an exercise price of $18.92. As of September 30, 2014, 37,543 options were outstanding under the 2005 Option Plan and none 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. During the three months ended September 30, 2014, 29,178 options were granted under the 2011 Option Plan at an exercise price of $18.92. As of September 30, 2014, 190,715 options were outstanding under the 2011 Option Plan and none 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.

XML

Fair Value Disclosures

3 Months Ended

Sep. 30, 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:

	September 30, 2014				June 30, 2014
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	4,794	$	4,794	$	13,633	$	13,633
Securities Available-for-Sale		55,494		55,494		48,434		48,434
Securities to be Held-to-Maturity		2,399		2,399		1,765		1,765
Loans Held-for-Sale		11,035		11,035		9,375		9,375
Loans Receivable		248,309		248,301		239,563		242,240
Financial Liabilities
Deposits		252,011		238,510		272,295		259,411
Advances from FHLB		43,589		43,574		12,897		13,266
Off-Balance Sheet Items
Mortgage Loan Commitments		319		319		349		349

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.  ASC 820 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 September 30, 2014 and June 30, 2014 are as follows:

	Fair Value Measurements Using:
September 30, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	--	$	312	$	--	$	312
FNMA		--		34,512		--		34.512
GNMA		--		20,670		--		20,670
Total	$	--	$	55,494	$	--	$	55,494

	Fair Value Measurements Using:
June 30, 2014	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Unobservable Inputs (Level 3)		Total
			(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	--	$	323	$	--	$	323
FNMA		--		25,780		--		25,780
GNMA		--		22,331		--		22,331
Total	$	--	$	48,434	$	--	$	48,434

XML

Stock-Based Compensation (Details) (USD $)	3 Months Ended
	Sep. 30, 2014
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)	564
Exchange ratio	0.9110
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%
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
Number of released vested shares (in shares)	8,557
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	$ 57,000
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
Share price (in dollars per share)	$ 18.92
Aggregate number of shares of common stock reserved for issuance (in shares)	158,868
Outstanding stock options under the plan (in shares)	37,543
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)	29,178
Share price (in dollars per share)	$ 18.92
Aggregate number of shares of common stock reserved for issuance (in shares)	194,522
Outstanding stock options under the plan (in shares)	190,715

XML

Deposits (Tables)

3 Months Ended

Sep. 30, 2014

Deposits [Abstract]

Interest expense on deposits

Deposits at September 30, 2014 and June 30, 2014 consist of the following classifications:

	September 30, 2014		June 30, 2014
	(In Thousands)
Non-Interest Bearing	$	40,433	$	43,447
NOW Accounts		26,278		24,015
Money Markets		45,198		72,240
Passbook Savings		13,195		12,165
		125,104		151,867
Certificates of Deposit		126,907		120,428
Total Deposits	$	252,011	$	272,295

XML

Securities, Schedule of Held-to-maturity Securities (Details) (USD $) Share data in Thousands, unless otherwise specified	Sep. 30, 2014	Jun. 30, 2014
Held to Maturity Equity Securities Amortized Cost Basis [Abstract]
Equity Securities, Amortized Cost Basis	$ 2,399,000	$ 1,765,000
Equity Securities, Gross Unrealized Gains	0	0
Equity Securities, Gross Unrealized Losses	0	0
Available for sale, Equity Securities	2,399,000	1,765,000
Total	2,399,000	1,765,000
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,399,000	1,765,000
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
Other Equity Securities	2,399,000	1,765,000
Total	2,399,000	1,765,000
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
Other Equity Securities	2,399,000
Total	2,399,000	1,765,000
Public deposits [Member]
Held-to-Maturity, Fair Value [Abstract]
Securities pledged with carrying value	9,100
FHLB advances [Member]
Held-to-Maturity, Fair Value [Abstract]
Securities pledged with carrying value	149,900
Federal Home Loan Bank [Member]
Held to Maturity Equity Securities Amortized Cost Basis [Abstract]
Equity Securities, Amortized Cost Basis	2,149,000	1,515,000
Equity Securities, Gross Unrealized Gains	0	0
Equity Securities, Gross Unrealized Losses	0	0
Available for sale, Equity Securities	2,149,000	1,515,000
Held-to-Maturity, Amortized Cost [Abstract]
Other Equity Securities	2,149,000	1,515,000
First National Bankers Bankshares, Inc. [Member]
Held to Maturity Equity Securities Amortized Cost Basis [Abstract]
Equity Securities, Amortized Cost Basis	250,000	250,000
Equity Securities, Gross Unrealized Gains	0	0
Equity Securities, Gross Unrealized Losses	0	0
Available for sale, Equity Securities	250,000	250,000
Held-to-Maturity, Amortized Cost [Abstract]
Other Equity Securities	$ 250,000	$ 250,000
Non-Marketable Equity Securities [Member] | Federal Home Loan Bank [Member]
Held-to-Maturity, Fair Value [Abstract]
Number of equity securities (in shares)	21,487	15,145
Non-Marketable Equity Securities [Member] | First National Bankers Bankshares, Inc. [Member]
Held-to-Maturity, Fair Value [Abstract]
Number of equity securities (in shares)	630	630

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net Income	$ 823	$ 713
Other Comprehensive (Loss), Net of Tax
Unrealized Holding (Loss) on Securities Available-for-Sale, Net of Tax of $81 in 2014 and $135 in 2013	(158)	(262)
Total Comprehensive Income	$ 665	$ 451

XML

Securities

3 Months Ended

Sep. 30, 2014

Securities [Abstract]

Securities

2.Securities

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

	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	301	$	11	$	--	$	312
FNMA Mortgage-Backed Certificates		33,901		732		121		34,512
GNMA Mortgage-Backed Certificates		21,271		6		607		20,670
Total Debt Securities		55,473		749		728		55,494
Total Securities Available-for-Sale	$	55,473	$	749	$	728	$	55,494
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
21,487Shares – Federal Home Loan Bank	$	2,149	$	--	$	--	$	2,149
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,399		--		--		2,399
Total Securities Held-to-Maturity	$	2,399	$	--	$	--	$	2,399

	June 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Securities Available-for-Sale	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	311	$	12	$	--	$	323
FNMA Mortgage-Backed Certificates		24,947		857		24		25,780
GNMA Mortgage-Backed Certificates		22,915		6		590		22,331
Total Debt Securities		48,173		875		614		48,434
Total Securities Available-for-Sale	$	48,173	$	875	$	614	$	48,434
Securities Held-to-Maturity
Equity Securities (Non-Marketable)
15,145 Shares – Federal Home Loan Bank	$	1,515	$	--	$	--	$	1,515
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		1,765		--		--		1,765
Total Securities Held-to-Maturity	$	1,765	$	--	$	--	$	1,765

The amortized cost and fair value of securities by contractual maturity at September 30, 2014, follows:

	Available-for-Sale						Held-to-Maturity
	Amortized Cost			Fair Value			Amortized Cost			Fair Value
	(In Thousands)
Debt Securities
Within One Year or Less		$	--		$	--		$	--		$	--
One through Five Years			239			246			--			--
After Five through Ten Years			152			157			--			--
Over Ten Years			55,082			55,091			--			--
			55,473			55,494			--			--
Other Equity Securities			--			--			2,399			2,399
Total		$	55,473		$	55,494		$	2,399		$	2,399

There were no sales of available-for-sale securities during the three months ended September 30, 2014.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at September 30, 2014 and June 30, 2014 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 2014
	Less Than Twelve Months				Over Twelve Months
	GrossUnrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	91	$	19,697	$	637	$	22,471
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	91	$	19,697	$	637	$	22,471

	June 30, 2014
	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
Mortgage-Backed Securities	$	24	$	1,947	$	590	$	22,193
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	24	$	1,947	$	590	$	22,193

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 September 30, 2014, securities with a carrying value of $9.1 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $149.9 million were pledged to secure FHLB advances.

XML

Loans Receivable (Details) (USD $) In Thousands, unless otherwise specified	3 Months Ended
	Sep. 30, 2014	Sep. 30, 2013	Jun. 30, 2014
Loan receivable [Abstract]
Gross Loans Receivable	$ 250,820	$ 209,434	$ 242,257
Less: Allowance for Loan Losses	(2,285)	(2,306)
Unamortized Loan Fees	(226)		(298)
Net Loans Receivable	248,309		239,563
Summary of changes in the allowance for loan losses [Roll Forward]
Balance - Beginning of Period	2,396	2,240
Provision for Loan Losses	40	66
Loan Charge-Offs	(151)	0
Balance - End of Period	2,285	2,306
Mortgage Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	223,377		216,142
Commercial Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	27,032		25,749
Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	411		366
One-to-Four Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	96,279		89,545
Commercial [Member]
Loan receivable [Abstract]
Gross Loans Receivable	55,554	50,310	56,266
Multi-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	15,967	19,567	20,368
Land [Member]
Loan receivable [Abstract]
Gross Loans Receivable	22,513	15,317	19,945
Construction [Member]
Loan receivable [Abstract]
Gross Loans Receivable	13,366	16,152	12,505
Equity and Second Mortgage [Member]
Loan receivable [Abstract]
Gross Loans Receivable	2,318		2,563
Equity Lines of Credit [Member]
Loan receivable [Abstract]
Gross Loans Receivable	17,380		14,950
Loans on Savings Accounts [Member]
Loan receivable [Abstract]
Gross Loans Receivable	304		255
Automobile and Other Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	107		111
Other Loans Secured by Real Estate [Member]
Loan receivable [Abstract]
Gross Loans Receivable	$ 19,698	$ 14,165	$ 17,513

XML

Loans Receivable (Tables)

3 Months Ended

Sep. 30, 2014

Loans Receivable [Abstract]

Loans receivable

Loans receivable are summarized as follows:

	September 30, 2014			June 30, 2014
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One- to Four-Family Residential	$	96,279		$	89,545
Commercial		55,554			56,266
Multi-Family Residential		15,967			20,368
Land		22,513			19,945
Construction		13,366			12,505
Equity and Second Mortgage		2,318			2,563
Equity Lines of Credit		17,380			14,950
Total Mortgage Loans		223,377			216,142
Commercial Loans		27,032			25,749
Consumer Loans
Loans on Savings Accounts		304			255
Automobile and Other Consumer Loans		107			111
Total Consumer and Other Loans		411			366
Total Loans		250,820			242,257
Less:   Allowance for Loan Losses		(2,285	)		(2,396	)
Unamortized Loan Fees		(226	)		(298	)
Net Loans Receivable	$	248,309		$	239,563

Analysis of allowance for loan losses

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

	Three Months Ended September 30,
	2014			2013
	(In Thousands)
Balance - Beginning of Period	$	2,396		$	2,240
Provision for Loan Losses		40			66
Loan Charge-Offs		(151	)		--
Balance - End of Period	$	2,285		$	2,306

Credit quality indicators

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

September 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	96,151	$	115	$	13	$	--	$	96,279
Commercial		54,937		553		--		64		55,554
Multi-Family Residential		15,967		--		--		--		15,967
Land		22,513		--		--		--		22,513
Construction		13,366		--		--		--		13,366
Equity and Second Mortgage		2,318		--		--		--		2,318
Equity Lines of Credit		17,353		--		--		27		17,380
Commercial Loans		27,032		--		--		--		27,032
Consumer Loans		411		--		--		--		411
Total	$	250,048	$	668	$	13	$	91	$	250,820

June 30, 2014	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One- to Four-Family Residential	$	89,345	$	49	$	--	$	151	$	89,545
Commercial		53,621		2,645		--		--		56,266
Multi-Family Residential		20,368		--		--		--		20,368
Land		19,945		--		--		--		19,945
Construction		12,505		--		--		--		12,505
Equity and Second Mortgage		2,563		--		--		--		2,563
Equity Lines of Credit		14,923		--		--		27		14,950
Commercial Loans		25,749		--		--		--		25,749
Consumer Loans		366		--		--		--		366
Total	$	239,385	$	2,694	$	--	$	178	$	242,257

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 September 30, 2014 and June 30, 2014:

September 30, 2014	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
							Past Due
	(In Thousands)
Real Estate Loans:
One- to Four-Family	$	1,138	$	923	$	81	$	2,142	$	94,137	$	96,279	$	68
Residential
Commercial		--		--		--		--		55,554		55,554		--
Multi-Family Residential		--		--		--		--		15,967		15,967		--
Land		--		--		--		--		22,513		22,513		--
Construction		--		--		--		--		13,366		13,366		--
Equity and Second Mortgage		--		--		--		--		2,318		2,318		--
Equity Lines of Credit		--		--		27		27		17,353		17,380		--
Commercial Loans		--		--		--		--		27,032		27,032		--
Consumer Loans		--		--		--		--		411		411		--
Total	$	1,138	$	923	$	108	$	2,169	$	248,651	$	250,820	$	68

June 30, 2014	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	$	1,326	$	435	$	164	$	1,925	$	87,620	$	89,545	$	13
Commercial		--		--		--		--		56,266		56,266		--
Multi-Family Residential		--		--		--		--		20,368		20,368		--
Land		--		--		--		--		19,945		19,945		--
Construction		--		--		--		--		12,505		12,505		--
Equity and Second Mortgage		--		--		--		--		2,563		2,563		--
Equity Lines of Credit		--		--		27		27		14,923		14,950		--
Commercial Loans		259		--		--		259		25,490		25,749		--
Consumer Loans		--		--		--		--		366		366		--
Total	$	1,585	$	435	$	191	$	2,211	$	240,046	$	242,257	$	13

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 three months ended September 30, 2014 was as follows:

	Real Estate Loans
September 30, 2014	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	$	1,224		$	464		$	128		$	168	$	105	$	99	$	202	$	6	$	2,396
Charge-Offs		(151	)		--			--			--		--		--		--		--		(151	)
Recoveries		--			--			--			--		--		--		--		--		--
Current Provision		96			(108	)		(56	)		12		22		29		45		--		40
Ending Balances	$	1,169		$	356		$	72		$	180	$	127	$	128	$	247	$	6	$	2,285
Evaluated for Impairment:
Individually		--			--			--			--		--		--		--		--		--
Collectively		1,169			356			72			180		127		128		247		6		2,285
Loans Receivable:
Ending Balances – Total	$	96,279		$	55,554		$	15,967		$	22,513	$	13,366	$	19,698	$	27,032	$	411	$	250,820
Ending Balances:
Evaluated for Impairment:
Individually		128			617			--			--		--		27		--		--		772
Collectively	$	96,151		$	54,937		$	15,967		$	22,513	$	13,366	$	19,671	$	27,032	$	411	$	250,048

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

	Real Estate Loans
June 30, 2014	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	$	1,023	$	338	$	103	$	127	$	146		$	85		$	412		$	6	$	2,240
Charge-Offs		--		--		--		--		--			(12	)		--			--		(12	)
Recoveries		--		--		--		--		--			--			--			--		--
Current Provision		201		126		25		41		(41	)		26			(210	)		--		168
Ending Balances	$	1,224	$	464	$	128	$	168	$	105		$	99		$	202		$	6	$	2,396
Evaluated for Impairment:
Individually		--		--		--		--		--			--			--			--		--
Collectively		1,224		464		128		168		105			99			202			6		2,396
Loans Receivable:
Ending Balances - Total	$	89,545	$	56,266	$	20,368	$	19,945	$	12,505		$	17,513		$	25,749		$	366	$	242,257
Ending Balances:
Evaluated for Impairment:
Individually		200		2,645		--		--		--			27			--			--		2,872
Collectively	$	89,345	$	53,621	$	20,368	$	19,945	$	12,505		$	17,486		$	25,749		$	366	$	239,385

	Real Estate Loans
September 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	$	1,023	$	338	$	103		$	127	$	146		$	85		$	412		$	6	$	2,240
Charge-Offs		--		--		--			--		--			--			--			--		--
Recoveries		--		--		--			--		--			--			--			--		--
Current Provision		94		74		(13	)		2		(17	)		(5	)		(71	)		2		66
Ending Balances	$	1,117	$	412	$	90		$	129	$	129		$	80		$	341		$	8	$	2,306
Evaluated for Impairment:
Individually		--		--		--			--		--			--			--			--		--
Collectively		1,117		412		90			129		129			80			341			8		2,306
Loans Receivable:
Ending Balances - Total	$	76,379	$	50,310	$	19,567		$	15,317	$	16,152		$	14,165		$	17,176		$	368	$	209,434
Ending Balances:
Evaluated for Impairment:
Individually		565		1,699		--			--		--			116			2,937			--		5,317
Collectively	$	75,814	$	48,611	$	19,567		$	15,317	$	16,152		$	14,049		$	14,239		$	368	$	204,117

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 September 30, 2014 and June 30, 2014:

September 30, 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	$	128	$	128	$	--	$	128	$	--	$	137
Commercial		617		617		--		617		--		658
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		27		27		--		27		--		27
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	772	$	772	$	--	$	772	$	--	$	822

June 30, 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	$	200	$	200	$	--	$	200	$	--	$	216
Commercial		2,645		2,645		--		2,645		--		2,661
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		27		27		--		27		--		27
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	2,872	$	2,872	$	--	$	2,872	$	--	$	2,904