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:   March 31, 2018

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, a smaller reporting company or an emerging growth company.  See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth 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)		Emerging growth 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

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.  [   ]

Shares of common stock, par value $.01 per share, outstanding as of May 11, 2018: The registrant had 1,908,581 shares 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	30
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	39
Item 4:	Controls and Procedures	39
PART II	OTHER INFORMATION
Item 1:	Legal Proceedings	39
Item 1A:	Risk Factors	39
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	40
Item 3:	Defaults Upon Senior Securities	40
Item 4:	Mine Safety Disclosures	40
Item 5:	Other Information	40
Item 6:	Exhibits	40
SIGNATURES

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	March 31, 2018			June 30, 2017
	(In Thousands)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $3,451and $8,212 for March 31, 2018 and June 30, 2017, Respectively)	$	8,441		$	11,905
Securities Available-for-Sale		31,234			36,935
Securities Held-to-Maturity (Fair Value of $28,934 and $27,989, Respectively)		30,100			28,357
Loans Held-for-Sale		5,389			13,631
Loans Receivable, Net of Allowance for Loan Losses of $3,693 and $3,729, Respectively		314,167			312,772
Accrued Interest Receivable		1,175			1,094
Premises and Equipment, Net		12,019			12,219
Bank Owned Life Insurance		6,774			6,668
Deferred Tax Asset		1,157			1,601
Other Real Estate Owned		1,139			540
Other Assets		511			884
Total Assets	$	412,106		$	426,606
LIABILITIES AND STOCKHOLDERS' EQUITY
LIABILITIES
Deposits	$	347,194		$	329,045
Advances from Borrowers for Taxes and Insurance		515			698
Short-term Federal Home Loan Bank advances		10,000			37,000
Long-term Federal Home Loan Bank advances		6,706			11,907
Other Accrued Expenses and Liabilities		1,281			1,710
Total Liabilities		365,696			380,360
STOCKHOLDERS' EQUITY
Preferred Stock – $.01 Par Value; 10,000,000 Shares Authorized; None Issued and Outstanding		--			--
Common Stock – $.01 Par Value; 40,000,000 Shares Authorized; 1,908,581 and 1,953,066 Shares Issued       and Outstanding at March 31, 2018 and June 30, 2017, Respectively		23			23
Additional Paid-in Capital		34,963			34,516
Unearned ESOP Stock		(1,129	)		(1,215	)
Unearned RRP Trust Stock		(22	)		(46	)
Retained Earnings		13,639			13,320
Accumulated Other Comprehensive Loss		(1,064	)		(352	)
Total Stockholders' Equity		46,410			46,246
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$	412,106		$	426,606

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 March 31,				For the Nine Months Ended March 31,
	2018		2017		2018		2017
	(In Thousands, Except per Share Data)
INTEREST INCOME
Loans, Including Fees	$	4,179	$	3,912	$	12,743	$	11,600
Investment Securities		12		7		35		20
Mortgage-Backed Securities		298		302		826		746
Other Interest-Earning Assets		19		11		84		23
Total Interest Income		4,508		4,232		13,688		12,389
INTEREST EXPENSE
Deposits		768		591		2,213		1,694
Federal Home Loan Bank Borrowings		92		116		352		300
Other Bank Borrowings		2		6		4		14
Total Interest Expense		862		713		2,569		2,008
Net Interest Income		3,646		3,519		11,119		10,381
PROVISION FOR LOAN LOSSES		350		155		850		755
Net Interest Income after Provision for Loan Losses		3,296		3,364		10,269		9,626
NON-INTEREST INCOME
Gain on Sale of Loans		285		541		1,320		1,926
Gain on Sale of Real Estate		--		--		1		110
Gain on Sale of Securities		--		--		94		--
Income on Bank Owned Life Insurance		35		36		105		110
Service Charges on Deposit Accounts		223		194		660		541
Other Income		13		14		41		37
Total Non-Interest Income		556		785		2,221		2,724
NON-INTEREST EXPENSE
Compensation and Benefits		1,565		1,778		4,860		5,237
Occupancy and Equipment		345		304		1,017		922
Data Processing		165		128		497		442
Audit and Examination Fees		67		56		194		189
Franchise and Bank Shares Tax		96		91		296		292
Advertising		47		121		117		287
Legal Fees		107		100		396		328
Loan and Collection		53		92		205		240
Deposit Insurance Premium		27		27		95		92
Other Expense		201		172		582		461
Total Non-Interest Expense		2,673		2,869		8,259		8,490
Income Before Income Taxes		1,179		1,280		4,231		3,860
PROVISION FOR INCOME TAX EXPENSE		158		428		1,840		1,243
Net Income	$	1,021	$	852	$	2,391	$	2,617
EARNINGS PER SHARE:
Basic	$	0.57	$	0.47	$	1.33	$	1.44
Diluted	$	0.54	$	0.44	$	1.26	$	1.38
DIVIDENDS DECLARED	$	0.12	$	0.09	$	0.36	$	0.27

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 March 31,					For the Nine Months Ended March 31,
	2018			2017		2018			2017
	(In Thousands)					(In Thousands)
Net Income	$	1,021		$	852	$	2,391		$	2,617
Other Comprehensive (Loss)/Income, Net of Tax
Unrealized Holding (Loss)/Gain on Securities Available-for-Sale,      Net of Tax of $179 and $270 in 2018 and $40 and $282 in 2017		(473	)		78		(712	)		(547	)
Total Comprehensive Income	$	548		$	930	$	1,679		$	2,070

See accompanying notes to unaudited consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY

NINE MONTHS ENDED MARCH 31, 2018 AND 2017

(Unaudited)

	Common  Stock		Additional Paid-in Capital		Unearned ESOP Stock			Unearned RRP Trust Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders' Equity
								(In Thousands)
BALANCE – June 30, 2016	$	23	$	33,863	$	(1,331	)	$	(265	)	$	11,018		$	84		$	43,392
Net Income		--		--		--			--			2,617			--			2,617
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			(547	)		(547	)
RRP Shares Earned		--		9		--			219			--			--			228
Stock Options Vested		--		194		--			--			--			--			194
Common Stock Issuance for Share     Awards Earned		--		138		--			--			--			--			138
Common Stock Issuance for Stock     Option Exercises		--		61		--			--			--			--			61
ESOP Compensation Earned		--		131		87			--			--			--			218
Company Stock Purchased		--		--		--			--			(592	)		--			(592	)
Dividends Declared		--		--		--			--			(529	)		--			(529	)
BALANCE – March 31, 2017	$	23	$	34,396	$	(1,244	)	$	(46	)	$	12,514		$	(463	)	$	45,180
BALANCE – June 30, 2017	$	23	$	34,516	$	(1,215	)	$	(46	)	$	13,320		$	(352	)	$	46,246
Net Income		--		--		--			--			2,391			--			2,391
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			116			(712	)		(596	)
RRP Shares Earned		--		--		--			24			--			--			24
Stock Options Vested		--		102		--			--			--			--			102
Common Stock Issuance for Stock     Option Exercises		--		191		--			--			--			--			191
ESOP Compensation Earned		--		154		86			--			--			--			240
Company Stock Purchased		--		--		--			--			(1,493	)		--			(1,493	)
Dividends Declared		--		--		--			--			(695	)		--			(695	)
BALANCE – March 31, 2018	$	23	$	34,963	$	(1,129	)	$	(22	)	$	13,639		$	(1,064	)	$	46,410

See accompanying notes to unaudited consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months ended
	March 31,
	2018			2017
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	2,391		$	2,617
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Net Amortization and Accretion on Securities		130			28
Gain on Sale of Real Estate		(1	)		(110	)
Gain on Sale of Loans		(1,320	)		(1,926	)
Gain on Sale of Securities		(94	)		--
Amortization of Deferred Loan Fees		(115	)		(51	)
Depreciation of Premises and Equipment		378			374
ESOP Expense		240			218
Stock Option Expense		102			194
Recognition and Retention Plan Expense		21			140
Share Awards Expense		101			104
Deferred Income Tax		444			(321	)
Provision for Loan Losses		850			755
Real Estate Owned Valuation Adjustment		60			--
Increase in Cash Surrender Value on Bank Owned Life Insurance		(105	)		(110	)
Bad Debt Recovery		25			12
Changes in Assets and Liabilities:
Loans Held-for-Sale – Originations and Purchases		(58,068	)		(79,773	)
Loans Held-for-Sale – Sale and Principal Repayments		67,631			87,741
Accrued Interest Receivable		(81	)		(88	)
Other Operating Assets		374			38
Other Operating Liabilities		(428	)		(276	)
Net Cash Provided by Operating Activities		12,535			9,566
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		(2,953	)		(19,175	)
Deferred Loan Fees Collected		221			105
Acquisition of Premises and Equipment		(178	)		(376	)
Proceeds from Sale of Real Estate		--			423
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities		6,262			10,335
Sale of Securities		3,555			--
Purchases of Securities		(7,717	)		--
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities		2,217			1,109
Purchases of Securities		(1,174	)		(27,674	)
Net Cash Used In  Investing Activities		233			(35,253	)

See accompanying notes to unaudited consolidated financial statements.

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
	Nine Months Ended
	March 31,
	2018			2017
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits	$	18,149		$	38,622
Proceeds from Federal Home Loan Bank Advances		183,775			656,900
Repayments of Advances from Federal Home Loan Bank		(215,976	)		(661,892	)
Net Decrease in Advances from Borrowers for Taxes and Insurance		(183	)		(279	)
Dividends Paid		(695	)		(529	)
Company Stock Purchased		(1,493	)		(592	)
Proceeds from Stock Options Exercised		191			61
Proceeds from Other Bank Borrowings		350			300
Repayment of Other Borrowings		(350	)		(700	)
Recognition and Retention Plan Share Distributions		--			--
Net Cash Provided (Used In) Financing Activities		(16,232	)		31,891
NET INCREASE IN CASH AND CASH EQUIVALENTS		(3,464	)		6,204
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		11,905			4,756
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	8,441		$	10,960
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	2,407		$	1,998
Income Taxes Paid		1,236			1,522
Market Value Adjustment for Loss on Securities Available-for-Sale		(814	)		(829	)

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 nine month period ended March 31, 2018 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2018.

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

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2018.  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 six full-service banking offices and home office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2018, 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 as 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 uncollectability 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 collectability 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 fair value of the collateral of the loan.  If the 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.  A loan is considered a troubled debt restructuring ("TDR") if the Company, for economic or legal reasons related to a debtor's financial difficulties, grants a concession to the debtor that it would not otherwise consider.  Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan's stated maturity date at less than a current market rate of interest.  Loans identified as TDRs are designated as impaired.

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 known and inherent losses in the existing loan portfolio both probable and reasonable to estimate.

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. Estimated useful lives are as follows:

Buildings and Improvements          10 - 40 Years

Furniture and Equipment                   3 - 10 Years

Bank-Owned Life Insurance

The Company has purchased life insurance contracts on the lives of certain key employees.  The Bank is the beneficiary of these policies.  These contracts are reported at their cash surrender value, and changes in the cash surrender value are included in non-interest income.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.          Summary of Accounting Policies (continued)

Allowance for Loan Losses (continued)

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.

The Company follows the provisions of the Income Taxes Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740.  ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties, and disclosures required.  The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

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.

Earnings per Share

Earnings per share are computed based upon the weighted average number of common shares outstanding during the period.

Non-Direct Response Advertising

The Company expenses all advertising costs, except for direct-response advertising, as incurred.  Non-direct response advertising costs were $117,000 and $287,000 for the nine months ended March 31, 2018 and 2017, respectively.

In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.  For the nine months ended March 31, 2018 and 2017, the Company did not incur any amount of direct-response advertising.

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.  This guidance applies to awards granted or modified after January 1, 2006 or any unvested awards outstanding prior to that date.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.          Summary of Accounting Policies (continued)

Reclassification

Certain financial statement balances included in the prior year consolidated financial statements have been reclassified to conform to the current period presentation.

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 balance sheets along with net income, they are components of comprehensive income (loss).

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The amendments in ASU 2014-09 supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance.  The general principle of ASU 2014-09 requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to be entitled in exchange for those goods or services.  The guidance sets forth a five-step approach to be utilized for revenue recognition.  In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 making it effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.  In April 2016, the FASB issued ASU 2016-10 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.  In May 2016, the FASB issued ASU 2016-12 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update affect only certain narrow aspects of Topic 606.  Management is currently assessing the impact to the Company's consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet.  This update is effective for fiscal years beginning after December 15, 2017.  The guidance may be adopted prospectively or retrospectively, and early adoption is permitted.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments.  The amendments in this Update supersede the guidance to classify equity securities with readily determinable fair values into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income.  The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of impairment.  The amendments in this Update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period.  In addition, the amendments in this Update exempt all entities that are not public business entities from disclosing fair value information for financial instruments measured at amortized cost.  In addition, for public business entities, the amendments supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial instruments measured at amortized cost on the balance sheet.  The amendments in this Update require public business entities that are required to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion consistent with Topic 820, Fair Value Measurement.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.          Summary of Accounting Policies (continued)

Recent Accounting Pronouncements (continued)

The provisions within this Update require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option.  This amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity.  The amendments in this Update require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements.

For public business entities, the amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases.  From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.  Leases will be classified as either finance or operating, with classification affecting pattern of expense recognition in the income statement for a lessee.

The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.  This Update is being issued as part of the Simplification Initiative.  The areas of simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  Some areas only apply to nonpublic entities.  For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods with those fiscal years.  The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.          Summary of Accounting Policies (continued)

Recent Accounting Pronouncements (continued)

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323).   This Update addresses and codifies the practical considerations and application of the required disclosures under SAB Topic 11.M for the implementation of ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The SEC Staff has emphasized on a number of occasions, including the December 2016 AICPA National Conference on Current SEC and PCAOB Developments, the requirements to disclose the potential material effects of newly issued standards, and the importance of providing investors with this information. Such disclosures should explain the impact the new standard is expected to have on the financial statements, and how the adoption of the new standard will affect comparability.  Entities should discuss both quantitative and qualitative information as available when assessing implementation of a new standard.  This ASU was effective immediately for public business entities.

In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20).  This Update was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the potential for exercise of a call is factored into current impairment assessments.  As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over the period not to exceed the earliest call date.  These amendments do not apply to securities carried at a discount.  The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company does not expect ASU 2017-08 to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718).  The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in FASB ASC 718.  The effective date of this Update is for fiscal years beginning after December 15, 2018.  Early adoption is permitted, including adoption in an interim period.  The Company does not expect ASU 2017-09 to have a material impact on its consolidated financial statements.

In February 2018, the FASB issued Accounting Standards Update ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  The ASU allows reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate tax rate.  The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption of the amendments is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued.  The amendments in this update should be applied retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 is recognized.  The Company early adopted this guidance retrospectively, which resulted in a reclassification of $216,000 from accumulated other comprehensive income to retained earnings reflected in the Company's consolidated statements of financial condition as of March 31, 2018.  

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.          Securities

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

	March 31, 2018
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	7,960	$	2	$	517	$	7,445
FNMA Mortgage-Backed Certificates		13,414		1		577		12,838
GNMA Mortgage-Backed Certificates		11,207		2		258		10,951
Total Debt Securities		32,581		5		1,352		31,234
Total Securities Available-for-Sale	$	32,581	$	5	$	1,352	$	31,234
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,165	$	-	$	47	$	1,118
FNMA Mortgage-Backed Certificates		26,101		-		1,119		24,982
Total Debt Securities		27,266		-		1,166		26,100
Equity Securities (Non-Marketable)
25,840Shares – Federal Home Loan Bank		2,584		-		-		2,584
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		2,834		-		-		2,834
Total Securities Held-to-Maturity	$	30,100	$	-	$	1,166	$	28,934

	June 30, 2017
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	9,140	$	5	$	297	$	8,848
FNMA Mortgage-Backed Certificates		19,986		256		285		19,957
GNMA Mortgage-Backed Certificates		8,342		3		215		8,130
Total Debt Securities		37,468		264		797		36,935
Total Securities Available-for-Sale	$	37,468	$	264	$	797	$	36,935
Securities Held-to-Maturity
Debt Securities
FNMA Mortgage-Backed Securities	$	25,558	$	2	$	370	$	25,190
Equity Securities (Non-Marketable)
25,488 Shares – Federal Home Loan Bank		2,549		--		--		2,549
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,799		--		--		2,799
Total Securities Held-to-Maturity	$	28,357	$	2	$	370	$	27,989

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.          Securities (continued)

The amortized cost and fair value of securities by contractual maturity at March 31, 2018 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	2	$	2	$	--	$	--
One through Five Years		25		26		--		--
After Five through Ten Years		40		41		--		--
Over Ten Years		32,514		31,165		27,266		26,100
		32,581		31,234		27,266		26,100
Other Equity Securities		--		--		2,834		2,834
Total	$	32,581	$	31,234	$	30,100	$	28,934

Securities available-for-sale totaling $3.5 million were sold for $3.6 million during the nine months ended March 31, 2018 resulting in a gain on sale of securities of $94,000.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2018 and June 30, 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2018
	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	$	--	$	--	$	1,352	$	31,119
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	--	$	--	$	1,352	$	31,119

	June 30, 2017
	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	$	144	$	10,278	$	653	$	21,719
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	144	$	10,278	$	653	$	21,719

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.          Securities (continued)

The unrealized losses on the Company's investment in mortgage-backed securities at March 31, 2018 and June 30, 2017 were caused by interest rate changes.  The contractual cash flows of these investments are guaranteed by agencies of the U.S. government.  Accordingly, it is expected that these securities would not be settled at a price less than the amortized cost of the Company's investment.  Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2018.

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

At March 31, 2018, securities with a carrying value of $230,903 were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $155.0 million were pledged to secure FHLB advances.

3.          Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2018			June 30, 2017
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	123,555		$	125,306
Commercial		75,029			77,945
Multi-Family Residential		34,092			21,281
Land		19,690			25,038
Construction		10,264			9,529
Equity and Second Mortgage		1,566			1,710
Equity Lines of Credit		19,538			20,976
Total Mortgage Loans		283,734			281,785
Commercial Loans		33,810			34,429
Consumer Loans
Loans on Savings Accounts		429			420
Other Consumer Loans		189			63
Total Consumer Loans		618			483
Total Loans		318,162			316,697
Less:   Allowance for Loan Losses		(3,693	)		(3,729	)
Unamortized Loan Fees		(302	)		(196	)
Net Loans Receivable	$	314,167		$	312,772

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.          Loans Receivable (continued)

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

	Nine Months Ended March 31,
	2018			2017
	(In Thousands)
Balance - Beginning of Period	$	3,729		$	2,845
Provision for Loan Losses		850			755
Loan Charge-Offs		(911	)		(30	)
Recoveries		25			12
Balance - End of Period	$	3,693		$	3,582

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:

Pass - Loans classified as pass are well protected by the current net worth or paying capacity of the obligor or by the fair value, less cost to acquire and sell the underlying collateral in a timely manner.

Pass Watch - Loans are considered marginal, meaning some weakness has been identified which could cause future impairment of repayment. However, these relationships are currently protected from any apparent loss by collateral.

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2018 and June 30, 2017:

			Special
March 31, 2018	Pass		Mention		Substandard		Doubtful		Total
			(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	122,300	$	108	$	1,147	$	-	$	123,555
Commercial		70,817		-		4,212		-		75,029
Multi-Family Residential		34,092		-		-		-		34,092
Land		19,690		-		-		-		19,690
Construction		10,264		-		-		-		10,264
Equity and Second Mortgage		1,394		59		113		-		1,566
Equity Lines of Credit		19,538		-		-		-		19,538
Commercial Loans		31,749		-		2,061		-		33,810
Consumer Loans		618		-		-		-		618
Total	$	310,462	$	167	$	7,533	$	-	$	318,162

June 30, 2017	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	124,450	$	303	$	553	$	--	$	125,306
Commercial		77,690		--		255		--		77,945
Multi-Family Residential		21,281		--		--		--		21,281
Land		24,915		123		--		--		25,038
Construction		9,232		297		--		--		9,529
Equity and Second Mortgage		1,710		--		--		--		1,710
Equity Lines of Credit		20,976		--		--		--		20,976
Commercial Loans		31,926		--		2,503		--		34,429
Consumer Loans		483		--		--		--		483
Total	$	312,663	$	723	$	3,311	$	--	$	316,697

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The following tables present an aging analysis of past due loans, segregated by class of loans, as March 31, 2018 and June 30, 2017:

													Recorded
													Investment
													> 90 Days
	30-59 Days		60-89 Days		Greater Than		Total				Total Loans		and
March 31, 2018	Past Due		Past Due		90 Days		Past due		Current		Receivable		Accruing
							(In Thousands)
Real Estate Loans:
One-to-Four Family      Residential	$	3,112	$	390	$	1,055	$	4,557	$	118,998	$	123,555	$	86
Commercial		--		--		--		--		75,029		75,029		--
Multi-Family Residential		--		--		--		--		34,092		34,092		--
Land		--		--		--		--		19,690		19,690		--
Construction		--		--		--		--		10,264		10,264		--
Equity and Second Mortgage		87		--		--		87		1,479		1,566		--
Equity Lines of Credit		205		97		190		492		19,046		19,538		170
Commercial Loans		--		--		1,604		1,604		32,206		33,810		--
Consumer Loans		--		--		--		--		618		618		--
Total	$	3,404	$	487	$	2,849	$	6,740	$	311,422	$	318,162	$	256

June 30, 2017	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	$	1,650	$	350	$	662	$	2,662	$	122,644	$	125,306	$	181
Commercial		8		--		--		8		77,937		77,945		--
Multi-Family Residential		--		--		--		--		21,281		21,281		--
Land		--		--		--		--		25,038		25,038		--
Construction		--		--		--		--		9,529		9,529		--
Equity and Second Mortgage		--		--		--		--		1,710		1,710		--
Equity Lines of Credit		194		--		4		198		20,778		20,976		4
Commercial Loans		--		--		2,503		2,503		31,926		34,429		--
Consumer Loans		--		--		--		--		483		483		--
Total	$	1,852	$	350	$	3,169	$	5,371	$	311,326	$	316,697	$	185

There was no interest income recognized on non-accrual loans during the nine months ended March 31, 2018 or year ended June 30, 2017. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the nine months ended March 31, 2018 and year ended June 30, 2017 was approximately $78,000 and $79,000, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2018 was as follows:

	Real Estate Loans
March 31, 2018	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	$	1,822		$	353	$	73	$	203		$	147	$	142		$	979		$	10		$	3,729
Charge-Offs		--			--		--		(109	)		--		(5	)		(797	)		--			(911	)
Recoveries		5			--		--		20			--		--			--			--			25
Current Provision		(735	)		146		99		41			67		58			1,181			(7	)		850
Ending Balances	$	1,092		$	499	$	172	$	155		$	214	$	195		$	1,363		$	3		$	3,693
Evaluated for Impairment:
Individually		--			--		--		--			--		--			--			--			--
Collectively	$	1,092		$	499	$	172	$	155			214	$	195		$	1,363		$	3			3,693
Loans Receivable:
Ending Balances –   Total	$	123,555		$	75,029	$	34,092	$	19,690		$	10,264	$	21,104		$	33,810		$	618		$	318,162
Ending Balances Evaluated
for Impairment:
Individually		1,255			4,212		--		--			--		172			2,061			--			7,700
Collectively	$	122,300		$	70,817	$	34,092	$	19,690		$	10,264	$	20,932		$	31,749		$	618		$	310,462

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the year ended June 30, 2017 was as follows:

	Real Estate Loans
June 30, 2017	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	$	1,517	$	321	$	111		$	201		$	126	$	117		$	444	$	8	$	2,845
Charge-Offs		--		--		--			(16	)		--		(14	)		--		--		(30	)
Recoveries		14		--		--			--			--		--			--		--		14
Current Provision		291		32		(38	)		18			21		39			535		2		900
Ending Balances	$	1,822	$	353	$	73		$	203		$	147	$	142		$	979	$	10	$	3,729
Evaluated for Impairment:
Individually		--		--		--			--			--		--			--		--		--
Collectively		1,822		353		73			203			147		142			979		10		3,729
Loans Receivable:
Ending Balances -   Total	$	125,306	$	77,945	$	21,281		$	25,038		$	9,529	$	22,686		$	34,429	$	483	$	316,697
Ending Balances Evaluated
for Impairment:
Individually		856		255		--			123			297		--			2,503		--		4,034
Collectively	$	124,450	$	77,690	$	21,281		$	24,915		$	9,232	$	22,686		$	31,926	$	483	$	312,663

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2017 was as follows:

	Real Estate Loans
March 31, 2017	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	$	1,517	$	321	$	111		$	201		$	126	$	117		$	444	$	8		$	2,845
Charge-Offs		--		--		--			(16	)		--		(14	)		--		--			(30	)
Recoveries		12		--		--			--			--		--			--		--			12
Current Provision		212		17		(31	)		14			31		35			485		(8	)		755
Ending Balances	$	1,741	$	338	$	80		$	199		$	157	$	138		$	929	$	--		$	3,582
Evaluated for Impairment:
Individually		--		--		--			--			--		--			--		--			--
Collectively		1,741		338		80			199			157		138			929		--			3,582
Loans Receivable:
Ending Balances –   Total	$	120,446	$	73,948	$	19,050		$	24,399		$	13,821	$	21,636		$	35,540	$	442		$	309,282
Ending Balances
Evaluated for Impairment:
Individually		803		261		--			123			298		--			2,513		--			3,998
Collectively	$	119,643	$	73,687	$	19,050		$	24,276		$	13,523	$	21,636		$	33,027	$	442		$	305,284

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2018 and June 30, 2017:

March 31, 2018	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	$	1,255	$	1,255	$	--	$	1,255	$	--	$	1,146
Commercial		4,212		4,212		--		4,212		--		4,205
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		172		172		--		172		--		188
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		2,061		2,061		--		2,061		--		2,102
Consumer Loans		--		--		--		--		--		--
Total	$	7,700	$	7,700	$	--	$	7,700	$	--	$	7,641

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.          Loans Receivable (continued)

June 30, 2017	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	$	856	$	856	$	--	$	856	$	--	$	861
Commercial		255		255		--		255		--		261
Multi-Family Residential		--		--		--		--		--		--
Land		123		123		--		123		--		125
Construction		297		297		--		297		--		299
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		2,513		2,513		--		2,513		--		2,649
Consumer Loans		--		--		--		--		--		--
Total	$	4,044	$	4,044	$	--	$	4,044	$	--	$	4,195

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

A troubled debt restructuring ("TDR") is a restructuring of a debt made by the Company to a debtor for economic or legal reasons related to the debtor's financial difficulties that it would not otherwise consider.  The Company grants the concession in an attempt to protect as much of its investment as possible.

Information about the Company's TDRs is as follows (in thousands):

	March 31, 2018
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	4,745		$	1,604		$	1,604		$	6,349
	June 30, 2017
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	--		$	1,717		$	1,717		$	1,717

At bothMarch 31, 2018 and June 30, 2017, the bank had troubled debt restructuring involving nine commercial loan contracts to one borrower with a recorded investment of approximately $1.6 million along with another troubled debt restructuring classification during the quarter ending March 31, 2018 involving five commercial loans totaling $4.7 million that are current on all interest payments due with no expected losses at this time.  For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company's allowance for loan loss methodology.  If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans. As of March 31, 2018, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

4.          Deposits

Deposits at March 31, 2018 and June 30, 2017 consist of the following classifications:

	March 31, 2018		June 30, 2017
	(In Thousands)
Non-Interest Bearing	$	53,194	$	54,420
NOW Accounts		32,811		34,500
Money Markets		61,685		42,439
Passbook Savings		36,257		35,050
		183,947		166,409
Certificates of Deposit		163,247		162,636
Total Deposits	$	347,194	$	329,045

5.          Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and nine months ended March 31, 2018 and 2017 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(In Thousands, Except Per Share Data)
Net income	$	1,021	$	852	$	2,391	$	2,617
Weighted average shares outstanding - basic		1,793		1,819		1,804		1,814
Effect of dilutive common stock equivalents		102		109		100		88
Adjusted weighted average shares outstanding - diluted		1,895		1,928		1,904		1,902
Basic earnings per share	$	0.57	$	0.47	$	1.33	$	1.44
Diluted earnings per share	$	0.54	$	0.44	$	1.26	$	1.38

For the three months ended March 31, 2018 and 2017, there were outstanding options to purchase 296,551 and 301,334 shares, respectively, at a weighted average exercise price of $17.88 and $17.82 per share, respectively and for the nine months ended March 31, 2018 and 2017, there were outstanding options to purchase 296,551 and 302,517 shares, respectively, at a weighted average exercise price of $17.88 and $17.81 per share, respectively. For the quarter ended March 31, 2018 and 2017, 102,413 options and 109,145 options, respectively, were included in the computation of diluted earnings per share.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(114	)		(125	)		(116	)		(129	)
Average unearned RRP shares		(3	)		(10	)		(3	)		(16	)
Average Company stock purchased		(1,152	)		(1,108	)		(1,139	)		(1,103	)
Weighted average shares outstanding		1,793			1,819			1,804			1,814

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.          Stock-Based Compensation

Recognition and Retention Plan

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 "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 Recognition Plan totaled 77,808 shares, all of which were awarded as of March 31, 2018.

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 will 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 cost associated with the Recognition Plan is based on share prices of $14.70 and $18.92 on January 31, 2012 and July 31, 2014, respectively, which represents the fair market price of the Company's stock on the dates on which the Recognition Plan shares were granted. The cost of the Recognition Plan is being recognized over the five year vesting period.  Compensation expense pertaining to the Recognition Plan was $21,000 and $140,000, for the nine months ended March 31, 2018 and 2017, respectively.

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.  The 2005 Stock Option Plan terminated on June 8, 2015, however outstanding stock options will remain in effect for the remainder of their original ten year terms.

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.

On August 19, 2010 and July 31, 2014, the Company granted 21,616 options and 2,133 options, respectively, under the 2005 Option Plan that were previously forfeited (as adjusted for the conversion) at an exercise price of $10.93 and $18.92 per share, respectively.  On January 31, 2012 and July 31, 2014, 165,344 options and 29,178 options, respectively, were granted to directors and employees at an exercise price of $14.70 and $18.92 per share, respectively, under the 2011 Option Plan.  As of March 31, 2018, there were 389 stock options available for future grant under the 2011 Option Plan.

Under the Option Plans, the exercise price of each option cannot be less than the fair market value of the underlying common stock as of the date of the option grant, and the maximum term is ten years. Incentive stock options and non-qualified stock options granted under the Option Plans become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee's employment or service as a director is terminated.  In the event of the death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable.  The Company accounts for the Option Plans under the guidance of FASB ASC Topic 718, Compensation – Stock Compensation.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.          Stock-Based Compensation (continued)

Incentive stock options and non-qualified stock options granted under the Option Plan become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee's employment or service as a director is terminated.  In the event of death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable.  The Company recognizes compensation expense during the vesting period based on the fair value of the option on the date of the grant.  For both nine months ended March 31, 2018 and 2017, compensation expense charged to operations was $101,000.

Stock Incentive Plan

On November 12, 2014, the shareholders of the Company approved the adoption of the Company's 2014 Stock Incentive Plan (the "Stock Incentive Plan") for the benefit of employees and non-employee directors as an incentive to contribute to the success of the Company and reward employees for outstanding performance and the attainment of targeted goals.  The Stock Incentive Plan covers a total of 150,000 shares, of which no more than 37,500 shares, or 25% of the plan, may be share rewards.  The balance of the plan is reserved for stock option awards which would total 112,500 stock options, assuming all the share awards are issued. All incentive stock options granted under the Stock Incentive Plan are intended to comply with the requirements of Section 422 of the Internal Revenue Code.  On October 26, 2015, the Company granted a total of 34,500 plan share awards and 103,500 stock options to directors, officers, and other key employees vesting ratably over five years. The Stock Incentive Plan cost is recognized over the five year vesting period. During the nine months ended March 31, 2018 and March 31, 2017 the Company recognized $102,000 and $197,000, respectively, in expenses related to the Stock Incentive Plan.

7.          Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2.6 million and $2.8 million at March 31, 2018 and June 30, 2017, respectively.

8.          Fair Value Disclosures

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

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

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

Cash and Cash Equivalents

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

Investment Securities

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.          Fair Value Disclosures (continued)

Mortgage Loans Held-for-Sale

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

Loans Receivable

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

Deposit Liabilities

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

Advances from Federal Home Loan Bank

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

Off-Balance Sheet Credit-Related Instruments

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.          Fair Value Disclosures (continued)

At March 31, 2018 and June 30, 2017, the carrying amount and estimated fair values of the Company's financial instruments were as follows:

	March 31, 2018				June 30, 2017
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,441	$	8,441	$	11,905	$	11,905
Securities Available-for-Sale		31,234		31,234		36,935		36,935
Securities to be Held-to-Maturity		30,100		28,934		28,357		27,989
Loans Held-for-Sale		5,389		5,389		13,631		13,631
Loans Receivable		314,167		310,038		312,772		301,741
Financial Liabilities
Deposits		347,194		333,617	$	329,045	$	313,514
Advances from FHLB		16,706		16,575		48,907		48,918
Off-Balance Sheet Items
Mortgage Loan Commitments	$	5,152	$	5,152	$	457	$	457

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 instruments 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:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.          Fair Value Disclosures (continued)

● 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.

The preceding methods described may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values.  Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.  There have been no changes in the methodologies used during the nine months ended March 31, 2018.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2018 and June 30, 2017 are as follows:

	Fair Value Measurements Using:
March 31, 2018	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	$	--	$	7,445	$	--	$	7,445
FNMA		--		12,838		--		12,838
GNMA		--		10,951		--		10,951
Total	$	--	$	31,234	$	--	$	31,234

	Fair Value Measurements Using:
June 30, 2017	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	$	--	$	8,848	$	--	$	8,848
FNMA		--		19,957		--		19,957
GNMA		--		8,130		--		8,130
Total	$	--	$	36,935	$	--	$	36,935

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.          Subsequent Events

In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date that the consolidated financial statements were available to be issued.  The effect of all subsequent events that provided additional evidence of conditions that existed at the balance sheet date are recognized in the consolidated financial statements as of March 31, 2018.  In preparing these consolidated financial statements, the company evaluated the events and transactions that occurred through the date these consolidated financial statements were issued.

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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 and an administrative office in Shreveport, Louisiana and five full service branch offices 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.

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, 2017 to March 31, 2018

General

At March 31, 2018, the Company reported total assets of $412.1 million, a decrease of $14.5 million, or 3.4%, compared to total assets of $426.6 million at June 30, 2017. The decrease in assets was comprised primarily of decreases in loans held-for-sale of $8.2 million, or 60.5%, from $13.6 million at June 30, 2017 to $5.4 million at March 31, 2018, investment securities of $4.0 million, or 6.1%, from $65.3 million at June 30, 2017 to $61.3 million at March 31, 2018, cash and cash equivalents of $3.5 million, or 29.1%, from $11.9 million at June 30, 2017 to $8.4 million at March 31, 2018, deferred tax assets of $444,000, or 27.7%, from $1.6 million at June 30, 2017 to $1.2 at March 31, 2018, and other assets of $373,000, or 3.4%, from $884,000 at June 30, 2017 to $511,000 at March 31, 2018.  These decreases were partially offset by an increase in loans receivable, net of $1.4 million, or 0.4%, from $312.8 million at June 30, 2017 to $314.2 million at March 31, 2018. The decrease in investment securities was primarily due to the sale of $3.5 million of mortgage-backed securities along with $8.5 million of principal repayments on mortgage-backed securities partially offset by purchases of mortgage-backed securities that totaled $8.9 million during the nine months ended March 31, 2018.

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Discussion of Financial Condition Changes from June 30, 2017 to March 31, 2018 (continued)

We realized a gain of $94,000 from the sale of the securities during the nine months ended March 31, 2018.  The decrease in loans held-for-sale resulted primarily from a decrease in loans originated for sale during the nine months ended March 31, 2018.  The balance of real estate owned increased $599,000, or 110.9%, from $540,000 at June 30, 2017 to $1.1 million at March 31, 2018.  The increase in real estate owned was due to the acquisition of two one-to-four family residences during the quarter ended March 31, 2018.

Cash and Cash Equivalents

Cashand cash equivalents decreased $3.5 million, or 29.1%, from $11.9 million at June 30, 2017 to $8.4 million at March 31, 2018.  The $3.5 million decrease in cash and cash equivalents was used in large part to pay down advances from Federal Home Loan Bank.

Loans Receivable, Net

Loans receivable, net, increased by $1.4 million, or 0.4%, to $314.2 million at March 31, 2018 compared to $312.8 million at June 30, 2017.  The increase in loans receivable, net was primarily due to increases in multi-family  residential loans of $12.8 million, construction real estate loans of $735,000, and consumer loans of $135,000, partially offset by decreases in land loans of $5.3 million, commercial real estate loans of $2.9 million, one-to-four family real estate loans of $1.8 million, home equity lines of credit of $1.4 million, commercial non-real estate loans of $619,000, and $144,000 in home equity and second mortgage real estate loans.

Loans Held-for-Sale

Loans held-for-sale decreased $8.2 million, or 60.5%, from $13.6 million at June 30, 2017 to $5.4 million at March 31, 2018.  The decrease in loans held-for-sale results primarily from a decrease in the origination volume during the nine months ended March 31, 2018.

Investment Securities

Investment securities amounted to $61.3 million at March 31, 2018 compared to $65.3 million at June 30, 2017, a decrease of $4.0 million, or 6.1%. The decrease in investment securities was primarily due to the sale of mortgage-backed securities available-for-sale of $3.5 million and partial principal repayments on mortgage-backed securities of $8.5 million partially offset by purchases of mortgage backed securities that totaled $8.9 million.

Premises and Equipment, Net

Premises and equipment, net decreased $200,000, or 1.6%, to $12.0 million at March 31, 2018 compared to $12.2 million at June 30, 2017.

Asset Quality

At March 31, 2018, the Company had $4.0 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $3.5 million of non-performing assets at June 30, 2017, consisting of nine commercial business loans to one borrower, five single-family residential loans, four line of credit loans, and one residential lot in other real estate owned along with two single family residential loans in other real estate owned at March 31, 2018 compared to four single family residential loans, two line of credit loans, one residential lot in other real estate, and fifteen commercial business loans to two borrowers classified as substandard, at June 30, 2017. We had $7.5 million of loans classified as substandard at March 31, 2018 consisting of seven single-family residential loans, nine commercial non-real estate business loans to one borrower, and five loans to one borrower consisting of two commercial real estate loans, two commercial non-real estate loans, and one single family residential loan classified as substandard compared to four single family

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Discussion of Financial Condition Changes from June 30, 2017 to March 31, 2018 (continued)

residential loans, one line of credit loan, one commercial real estate loan and fifteen commercial business loans to two borrowers classified as substandard at June 30, 2017.  There were no loans classified as doubtful at March 31, 2018 or June 30, 2017. During the quarter ended December 31, 2016, webecame aware that one of two related borrowers of fifteen commercial business loans in the aggregate amount of $2.8 million that were classified as substandard filed for Chapter 11 (reorganization) bankruptcy protection during that period.  We charged off nine of the fifteen commercial business loans in the amount of $797,000 against the allowance for loan losses during the three months ended September 30, 2017.  We received principal payments in March 2017 for $272,000, May 2017 for $10,000 and monthly payments of $15,000 from August 2017 through March 2018 totaling $90,000 during the nine months ended March 31, 2018 reducing our exposure to $1.6 million.  These loans continue to be classified as substandard and are on non-accrual at March 31, 2018.  We are continuing to monitor these credits and presently believe that our allowance for loan losses at March 31, 2018 is adequate.

Total Liabilities

Total liabilities decreased $14.7 million, or 3.9%, from $380.4 million at June 30, 2017 to $365.7 million at March 31, 2018, primarily due to a decrease in advances from the Federal Home Loan Bank of $32.2 million, or 65.8%, to $16.7 million at March 31, 2018 compared to $48.9 million at June 30, 2017, partially offset by an increase of $18.2 million in total deposits, or 5.5%, in total deposits to $347.2 million at March 31, 2018 compared to $329.0 million at June 30, 2017.  The increase in deposits was primarily due to a $19.3 million, or 45.3%, increase in money market deposits from $42.4 million at June 30, 2017 to $61.7 million at March 31, 2018, and  a $1.2 million, or 3.4%, increase in savings deposits from $35.0 million at June 30, 2017 to $36.3 million at March 31, 2018, and a $611,000, or 0.4%, increase in certificates of deposit from $162.6 million at June 30, 2017 to $163.2 million at March 31, 2018 partially offset by a decrease of $1.7 million, or 4.9%, in NOW accounts from $34.5 million at June 30, 2017 to $32.8 million at March 31, 2018 and a decrease of $1.2 million, or 2.3%, in non-interest bearing deposits from $54.4 million at June 30, 2017 to $53.2 million at March 31, 2018.  At March 31, 2018, the Company had $10.0 million in brokered deposits compared to $11.5 million at June 30, 2017.  The decrease in brokered deposits is due to brokered deposits that matured during the nine month period ended March 31, 2018. 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 $429,000 decrease in other liabilities was primarily due to payment of property taxes out of loan escrow accounts.

Shareholders' Equity

Shareholders' equity increased $164,000, or 0.4%, to $46.4 million at March 31, 2018 from $46.2 million at June 30, 2017.  The primary reasons for the changes in shareholders' equity from June 30, 2017 were net income of $2.4 million, the vesting of restricted stock awards, stock options and the release of employee stock ownership plan shares totaling $366,000, adjustment to retained earnings related to the tax rate change totaling $116,000, and proceeds from the issuance of common stock from the exercise of stock options of $191,000.  These increases in shareholders' equity were partially offset by dividends paid totaling $695,000, acquisition of Company stock of $1.5 million, and a decrease in the Company's accumulated other comprehensive income of $712,000.

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency ("OCC").  At March 31, 2018, Home Federal Bank's regulatory capital was well in excess of the minimum capital requirements.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2018 and 2017

General

Net income amounted to $1.0 million for the three months ended March 31, 2018 compared to $852,000for the same period in 2017, an increase of $169,000, or 19.8%.  The increase was primarily due to a $270,000, or 63.1%, decrease in provision for income taxes, a $196,000, or 6.8%, decrease in non-interest expense along with an increase of $127,000, or 3.6%, in net interest income, partially offset by a decrease of $229,000, or 29.2%, in non-interest income along with an increase of $195,000, or 125.8%, in provision for loan losses.

Net income amounted to $2.4 million for the nine months ended March 31, 2018 compared to net income of $2.6 million for the same period in 2017, a decrease of $226,000, or 8.6%. The decrease was primarily due to a $597,000, or 48.0%, increase in the provision for income taxes, a $503,000, or 18.5% decrease in non-interest income, and an increase of $95,000, or 12.6%, in provision for loan losses, partially offset by an increase of $738,000, or 7.1%, in net interest income and a decrease of $231,000, or 2.7%, in non-interest expense.

Net Interest Income

The increase in net income for the three months ended March 31, 2018 resulted primarily from a $270,000, or 63.1%, decrease in provision for income taxes, a $196,000, or 6.8%, decrease in non-interest expense along with an increase of $127,000, or 3.6%, in net interest income partially offset by a decrease of $229,000, or 29.2%, in non-interest income along with an increase of $195,000, or 125.8%, in provision for loan losses.  The decrease in the provision for income taxes was primarily due to the Tax Cuts and Jobs Act (the "Tax Act") signed into law on December 22, 2017, which reduced the Company's effective tax rate for the quarter ended March 31, 2018.  The increase in net interest income for the three months ended March 31, 2018 was primarily due to a $276,000, or 6.5%, increase in total interest income, partially offset by an increase of $149,000, or 20.9%, in aggregate interest expense primarily due to an increase in the average volume of interest loans receivable. The Company's average interest rate spread was 3.58% for the three months ended March 31, 2018 compared to 3.49% for the three months ended March 31, 2017. The Company's net interest margin was 3.76% for the three months ended March 31, 2018 compared to 3.65% for the three months ended March 31, 2017. The increase in the average interest rate spread and net interest margin on a comparative quarterly basis was primarily the result of an increase of 26 basis points in average rate on interest-earning assets.

The decrease in net income for the nine months ended March 31, 2018 resulted primarily from an increase of $597,000, or 48.0%, in the provision for income taxes, a $503,000, or 18.5%, decrease in non-interest income, and a $95,000, or 12.6%, increase in provision for loan losses, partially offset by an increase of $738,000, or 7.1%, in net interest income, and a decrease of $231,000, or 2.7%, in non-interest expense.  The increase in the provision for income taxes for the nine months ended March 31, 2018 over the same prior year period was primarily due to the $642,000 re-measurement charge of the Company's net deferred tax asset as a result of the Tax Act signed into law on December 22, 2017. The increase in net interest income for the nine month period was primarily due to a $1.3 million, or 10.5%, increase in total interest income, partially offset by a $561,000, or 27.9%, increase in interest expense on borrowings and deposits. The Company's average interest rate spread was 3.55% for the nine months ended March 31, 2018 compared to 3.57% for the nine months ended March 31, 2017. The Company's net interest margin was 3.78% for the nine months ended March 31, 2018 compared to 3.74% for the nine months ended March 31, 2017.  The decrease in the average interest rate spread is attributable primarily to an increase of 21 basis points in average rate on interest bearing liabilities. The increase in net interest margin was primarily the result of an increase in rates on interest bearing assets for the nine months ended March 31, 2018 compared to the prior year nine month period.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2018 and 2017 (continued)

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 $350,000 and $850,000 was made during the three and nine months ended March 31, 2018, respectively, compared to a $155,000 and $755,000 provision made during the three and nine months ended March 31, 2017. The allowance for loan losses was $3.7 million, or 1.16% of total loans receivable, at March 31, 2018 compared to $3.8 million, or 1.16% of total loans receivable, at March 31, 2017.  At March 31, 2018, Home Federal Bank had $2.6 million in non-performing loans and $1.1 million in other real estate owned which totaled $3.7 million in non-performing assets.  At March 31, 2017, Home Federal Bank had $2.8 million in non-performing loans and 3.7 million inreal-estate owned. At March 31, 2018, the Company had eight single family residential loans, three line of credit loans, nine commercial business loans to one borrower, and five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one single family residential loans classified as substandard compared to two single family residential loans, one commercial real estate loan and fifteen commercial business loans to two borrowers classified as substandard at March 31, 2017. There were no loans classified as doubtful at March 31, 2018 or March 31, 2017. At both March 31, 2018 and March 31, 2017, the Bank had troubled debt restructurings involving nine commercial loan contracts to one borrower with a recorded investment of approximately $1.6million along with another troubled debt restructuring at March 31, 2018 involving fivecommercial loans totaling $4.7 million that are current on all interest payments due with no expected losses at this time.  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 $556,000 for the three months ended March 31, 2018, a decrease of $229,000, or 29.2%, compared to $785,000 for the same period in 2017.  The decrease was due to decreases of $256,000 in gain on sale of loans offset by an increase of $29,000 in service charges on deposit accounts.

Total non-interest income amounted to $2.2 million for the nine months ended March 31, 2018, a decrease of $503,000, or 18.5%, compared to $2.7 million for the same period in 2017.  The decrease was primarily due to decreases of $606,000 in gain on sale of loans, $109,000 in gain on sale of real estate, and a $5,000 decrease in bank owned life insurance income partially offset by a $119,000 increase in service charges on deposit accounts, $94,000 increase in gain on sale of securities, and a $4,000 increase in other income. The Company sells most of its long term fixed rate residential mortgage loan originations primarily in order to manage interest rate risk.

Non-interest Expense

Total non-interest expense decreased $196,000, or 6.8%, for the three months ended March 31, 2018 compared to the prior year period.  The decrease in non-interest expense was primarily due to decreases of $213,000 in compensation and benefits expenses, $74,000 in advertising expense, and $39,000 in loan and collection expense. The decreases were partially offset by increases of $41,000 in occupancy and equipment expense, $37,000 in data processing expense, $29,000 in other non-interest expense, $11,000 in audit and examination fees, $7,000 in legal fees, and $5,000 in franchise and bank shares tax expense.

Total non-interest expense decreased $231,000, or 2.7%, for the nine months ended March 31, 2018 compared to the prior year period. The decrease in non-interest expense for the nine months ended March 31, 2018, compared to the same period in 2017, is primarily attributable to decreases of $377,000 in compensation and benefits expense, $170,000 in advertising expense, and $35,000 in loan and collection expense.  These decreases were partially offset by increases of $121,000 in other non-interest expense, $95,000 in occupancy and equipment expense, $68,000 in legal fees, $55,000 in data processing expense, $5,000 in audit and examination fees, $4,000 in franchise and bank shares tax expense and $3,000 in deposit insurance premiums

The aggregate compensation expense recognized by the Company for its Stock Option, Share Award, ESOP, and Recognition and Retention Plans amounted to $159,000 and $464,000 for the three and nine months ended March 31, 2018, respectively, compared to $187,000 and $654,000 for the three and nine months ended March 31, 2017, respectively.

The Louisiana bank shares tax is assessed on the Bank's equity and earnings.  For the three and nine months ended March 31, 2018, the Company recognized franchise and bank shares tax expense of $96,000 and $296,000, respectively, compared to $91,000 and $292,000, respectively, for the same periods in 2017.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2018 and 2017 (continued)

Income Taxes

Income taxes amounted to $158,000 and $1.8 million for the three and nine months ended March 31, 2018, respectively.  Income taxes amounted to $428,000 and $1.2 million for the three and nine months ended March 31 2017, respectively.  The increase in income taxes for the nine month ended March 31, 2018, is primarily due to the impact of the Tax Cuts and Jobs Act (the "Tax Act") which President Trump signed into law on December 22, 2017.  The Tax Act reduced the corporate tax rate to 21% effective January 1, 2018, and resulted in a re-measurement change to the Company's deferred tax asset.  The decrease in income taxes for the three month ended March 31, 2018 was due to the recalculation of tax accruals from the 34% tax rate to our blended tax rate of $27.50% for our fiscal year ending on June 30, 2018.   In accordance with the Financial Accounting Standards Board (FASB) ASC Topic 740, Income Taxes, the effects of the new legislation are recognized upon enactment, which for federal legislation is the date the President signs a bill into law.  Therefore, the Company's deferred tax assets and deferred tax liabilities were re-measured at the enacted tax rate expected to apply when these assets and liabilities are expected to be realized or settled.  As a result of the tax law change, the Company recorded a decrease in its net deferred tax assets of $642,000 with a corresponding increase in income tax expense of $642,000 for the nine months ended March 31, 2018.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2018 and 2017 (continued)

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

	Three Months Ended March 31,
	2018							2017
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	319,163	$	4,179		5.19	%	$	309,587	$	3,912		5.01	%
Investment securities		60,542		310		2.03			67,177		309		1.82
Interest-earning deposits		4,605		19		1.64			6,072		11		0.72
Total interest-earning assets	$	384,310		4,508		4.65	%	$	382,836		4,232		4.39	%
Non-interest-earning assets		26,588							26,589
Total assets	$	410,898						$	409,425
Interest-bearing liabilities:
Savings accounts	$	36,480		48		0.52	%	$	35,646		45		0.50	%
NOW accounts		30,824		38		0.49			33,503		45		0.53
Money market accounts		54,205		80		0.59			44,387		34		0.30
Certificate accounts		166,522		602		1.43			145,998		467		1.27
Total interest-bearing deposits		288,031		768		1.06			259,534		591		0.90
Other bank borrowings		226		2		3.51			692		6		3.44
FHLB advances		30,828		92		1.18			53,156		116		0.87
Total interest-bearing liabilities	$	319,085		862		1.07	%	$	313,382		713		0.90	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		56,302							50,401
Other liabilities		1,460							1,430
Total liabilities		376,847							365,213
Total Stockholders' Equity(1)		46,045							44,212
Total liabilities and equity	$	422,892						$	409,425
Net interest-earning assets	$	65,225						$	69,454
Net interest income; average interest rate spread(2)			$	3,646		3.58	%			$	3,519		3.49	%
Net interest margin(3)						3.76	%						3.65	%
Average interest-earning assets to average   interest-bearing liabilities						120.44	%						122.16	%

 __________________

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

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

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

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2018 and 2017 (continued)

	Nine Months Ended March 31,
	2018							2017
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	323,650	$	12,743		5.24	%	$	304,550	$	11,600		5.07	%
Investment securities		59,941		861		1.91			60,186		766		1.70
Interest-earning deposits		8,157		84		1.37			5,286		23		0.58
Total interest-earning assets	$	391,748		13,688		4.65	%	$	370,022		12,389		4.46	%
Non-interest-earning assets		27,147							25,511
Total assets	$	418,895						$	395,533
Interest-bearing liabilities:
Savings accounts	$	36,518		146		0.53	%	$	32,456		114		0.47	%
NOW accounts		32,359		123		0.51			34,929		144		0.55
Money market accounts		45,780		160		0.47			46,178		109		0.31
Certificate accounts		166,364		1,784		1.43			139,296		1,327		1.27
Total interest-bearing deposits		281,021		2,213		1.05			252,859		1,694		0.89
Other bank borrowings		116		4		4.59			515		14		3.62
FHLB advances		30,829		352		1.52			47,229		300		0.85
Total interest-bearing liabilities	$	311,966		2,569		1.10	%	$	300,603		2,008		0.89	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		58,474							48,855
Other liabilities		2,156							1,862
Total liabilities		372,596							351,320
Total Stockholders' Equity(1)		46,299							44,213
Total liabilities and equity	$	418,895						$	395,533
Net interest-earning assets	$	79,782						$	69,419
Net interest income; average interest rate spread(2)			$	11.119		3.55	%			$	10.381		3.57	%
Net interest margin(3)						3.78	%						3.74	%
Average interest-earning assets to average   interest-bearing liabilities						125.57	%						123.09	%

____________________

(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.

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 $401,000 at March 31, 2018.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2018 and 2017 (continued)

A significant portion of Home Federal Bank's liquidity consists of securities classified as available-for-sale and cash and cash equivalents.   Home Federal Bank's primary sources of cash are net income, principal repayments on loans and mortgage-backed securities, and increases in deposit accounts.  If Home Federal Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas which provides an additional source of funds.  At March 31, 2018, Home Federal Bank had $16.7 million in advances from the Federal Home Loan Bank of Dallas and had $144.4 million in additional borrowing capacity.  Additionally, at March 31, 2018, 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 $15.5 million. There were no amounts purchased under this agreement as of March 31, 2018.

At March 31, 2018, Home Federal Bank had outstanding loan commitments of $49.3 million to originate loans and commitments under unused lines of credit of $10.9 million.  At March 31, 2018, certificates of deposit scheduled to mature in less than one year totaled $61.9 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 March 31, 2018, Home Federal Bank exceeded each of its regulatory capital requirements with tangible, common equity Tier 1, core, and risk-based capital ratios of 11.38%, 16.34%, 11.38%, and 17.59%, respectively.

Off-Balance Sheet Arrangements

At March 31, 2018, 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.

Forward-Looking Statements

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

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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 President and Chief Executive Officer (principal executive officer) 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 President and Chief Executive 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.

39

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 March 31, 2018 are set forth in the table below, including stock-for-stock option exercises:

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)
January 1, 2018 – January 31, 2018		--	$	--		--		--
February 1, 2018 – February 28, 2018		546	$	28.21		546		51,689
March 1, 2018 –March 31, 2018		2,000	$	30.04		2,000		49,689
Total		2,546	$	29.65		2,546		49,689

______________

Notes to this table:

(a) On October 12, 2016, the Company announced that its Board of Directors approved a seventh stock repurchase program for the repurchase of up to 97,000 shares to commence after the completion of the sixth stock repurchase program.  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 Principal Executive Officer
31.2		Rule 13a-14(a)/15d-14(a) Certification of Principal 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

40

SIGNATURES

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

	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Date:   May 14, 2018	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, James R. Barlow, President and 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: May 14, 2018
	/s/James R. Brown
	James R. Barlow
	President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

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: May 14, 2018
	/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 March 31, 2018 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: May 14, 2018
	/s/James R. Barlow
	Name:     James R. Barlow
	Title:       President and Chief Executive Officer                 (Principal Executive Officer)

Date: May 14, 2018
	/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

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2018	May 11, 2018
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		1,908,581
Document Fiscal Year Focus	2018
Document Fiscal Period Focus	Q3
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2018

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $3,451 and $8,212 for March 31, 2018 and June 30, 2017, Respectively)	$ 8,441	$ 11,905
Securities Available-for-Sale	31,234	36,935
Securities Held-to-Maturity (Fair Value of $28,934 and $27,989, Respectively)	30,100	28,357
Loans Held-for-Sale	5,389	13,631
Loans Receivable, Net of Allowance for Loan Losses of $3,693 and $3,729, Respectively	314,167	312,772
Accrued Interest Receivable	1,175	1,094
Premises and Equipment, Net	12,019	12,219
Bank Owned Life Insurance	6,774	6,668
Deferred Tax Asset	1,157	1,601
Other Real Estate Owned	1,139	540
Other Assets	511	884
Total Assets	412,106	426,606
LIABILITIES
Deposits	347,194	329,045
Advances from Borrowers for Taxes and Insurance	515	698
Short-term Federal Home Loan Bank advances	10,000	37,000
Long-term Federal Home Loan Bank advances	6,706	11,907
Other Accrued Expenses and Liabilities	1,281	1,710
Total Liabilities	365,696	380,360
STOCKHOLDERS' EQUITY
Preferred Stock - $.01 Par Value; 10,000,000 Shares Authorized; None Issued and Outstanding	0	0
Common Stock - $.01 Par Value; 40,000,000 Shares Authorized; 1,908,581 and 1,953,066 Shares Issued and Outstanding at March 31, 2018 and June 30, 2017, Respectively	23	23
Additional Paid-in Capital	34,963	34,516
Unearned ESOP Stock	(1,129)	(1,215)
Unearned RRP Trust Stock	(22)	(46)
Retained Earnings	13,639	13,320
Accumulated Other Comprehensive Loss	(1,064)	(352)
Total Stockholders' Equity	46,410	46,246
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 412,106	$ 426,606

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
ASSETS
Interest-Bearing Deposits with Other Banks	$ 3,451	$ 8,212
Securities Held-to-Maturity, Fair Value	28,934	27,989
Loans Receivable, Allowance for Loan Losses	$ 3,693	$ 3,729
STOCKHOLDERS' EQUITY
Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Preferred Stock, Authorized (in shares)	10,000,000	10,000,000
Preferred Stock, Issued (in shares)	0	0
Preferred Stock, Outstanding (in shares)	0	0
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Authorized (in shares)	40,000,000	40,000,000
Common Stock, Issued (in shares)	1,908,581	1,953,066
Common Stock, Outstanding (in shares)	1,908,581	1,953,066

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
INTEREST INCOME
Loans, Including Fees	$ 4,179	$ 3,912	$ 12,743	$ 11,600
Investment Securities	12	7	35	20
Mortgage-Backed Securities	298	302	826	746
Other Interest-Earning Assets	19	11	84	23
Total Interest Income	4,508	4,232	13,688	12,389
INTEREST EXPENSE
Deposits	768	591	2,213	1,694
Federal Home Loan Bank Borrowings	92	116	352	300
Other Bank Borrowings	2	6	4	14
Total Interest Expense	862	713	2,569	2,008
Net Interest Income	3,646	3,519	11,119	10,381
PROVISION FOR LOAN LOSSES	350	155	850	755
Net Interest Income after Provision for Loan Losses	3,296	3,364	10,269	9,626
NON-INTEREST INCOME
Gain on Sale of Loans	285	541	1,320	1,926
Gain on Sale of Real Estate	0	0	1	110
Gain on Sale of Securities	0	0	94	0
Income on Bank Owned Life Insurance	35	36	105	110
Service Charges on Deposit Accounts	223	194	660	541
Other Income	13	14	41	37
Total Non-Interest Income	556	785	2,221	2,724
NON-INTEREST EXPENSE
Compensation and Benefits	1,565	1,778	4,860	5,237
Occupancy and Equipment	345	304	1,017	922
Data Processing	165	128	497	442
Audit and Examination Fees	67	56	194	189
Franchise and Bank Shares Tax	96	91	296	292
Advertising	47	121	117	287
Legal Fees	107	100	396	328
Loan and Collection	53	92	205	240
Deposit Insurance Premium	27	27	95	92
Other Expense	201	172	582	461
Total Non-Interest Expense	2,673	2,869	8,259	8,490
Income Before Income Taxes	1,179	1,280	4,231	3,860
PROVISION FOR INCOME TAX EXPENSE	158	428	1,840	1,243
Net Income	$ 1,021	$ 852	$ 2,391	$ 2,617
EARNINGS PER SHARE:
Basic (in dollars per share)	$ 0.57	$ 0.47	$ 1.33	$ 1.44
Diluted (in dollars per share)	0.54	0.44	1.26	1.38
DIVIDENDS DECLARED (in dollars per share)	$ 0.12	$ 0.09	$ 0.36	$ 0.27

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net Income	$ 1,021	$ 852	$ 2,391	$ 2,617
Other Comprehensive (Loss)/Income, Net of Tax
Unrealized Holding (Loss)/Gain on Securities Available-for-Sale, Net of Tax of $179 and $270 in 2018 and $40 and $282 in 2017	(473)	78	(712)	(547)
Total Comprehensive Income	$ 548	$ 930	$ 1,679	$ 2,070

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Other Comprehensive (Loss)/Income, Net of Tax
Unrealized Holding (Loss)/Gain on Securities Available-for-Sale, Tax	$ (179)	$ 40	$ (270)	$ (282)

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]	Accumulated Other Comprehensive Income (Loss) [Member]	Total
Beginning Balance at Jun. 30, 2016	$ 23	$ 33,863	$ (1,331)	$ (265)	$ 11,018	$ 84	$ 43,392
Net Income	0	0	0	0	2,617	0	2,617
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	(547)	(547)
RRP Shares Earned	0	9	0	219	0	0	228
Stock Options Vested	0	194	0	0	0	0	194
Common Stock Issuance for Share Awards Earned	0	138	0	0	0	0	138
Common Stock Issuance for Stock Option Exercises	0	61	0	0	0	0	61
ESOP Compensation Earned	0	131	87	0	0	0	218
Company Stock Purchased	0	0	0	0	(592)	0	(592)
Dividends Declared	0	0	0	0	(529)	0	(529)
Ending Balance at Mar. 31, 2017	23	34,396	(1,244)	(46)	12,514	(463)	45,180
Beginning Balance at Jun. 30, 2017	23	34,516	(1,215)	(46)	13,320	(352)	46,246
Net Income	0	0	0	0	2,391	0	2,391
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	116	(712)	(596)
RRP Shares Earned	0	0	0	24	0	0	24
Stock Options Vested	0	102	0	0	0	0	102
Common Stock Issuance for Stock Option Exercises	0	191	0	0	0	0	191
ESOP Compensation Earned	0	154	86	0	0	0	240
Company Stock Purchased	0	0	0	0	(1,493)	0	(1,493)
Dividends Declared	0	0	0	0	(695)	0	(695)
Ending Balance at Mar. 31, 2018	$ 23	$ 34,963	$ (1,129)	$ (22)	$ 13,639	$ (1,064)	$ 46,410

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 2,391	$ 2,617
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Net Amortization and Accretion on Securities	130	28
Gain on Sale of Real Estate	(1)	(110)
Gain on Sale of Loans	(1,320)	(1,926)
Gain on Sale of Securities	(94)	0
Amortization of Deferred Loan Fees	(115)	(51)
Depreciation of Premises and Equipment	378	374
ESOP Expense	240	218
Stock Option Expense	102	194
Recognition and Retention Plan Expense	21	140
Share Awards Expense	101	104
Deferred Income Tax	444	(321)
Provision for Loan Losses	850	755
Real Estate Owned Valuation Adjustment	60	0
Increase in Cash Surrender Value on Bank Owned Life Insurance	(105)	(110)
Bad Debt Recovery	25	12
Changes in Assets and Liabilities:
Loans Held-for-Sale - Originations and Purchases	(58,068)	(79,773)
Loans Held-for-Sale - Sale and Principal Repayments	67,631	87,741
Accrued Interest Receivable	(81)	(88)
Other Operating Assets	374	38
Other Operating Liabilities	(428)	(276)
Net Cash Provided by Operating Activities	12,535	9,566
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections	(2,953)	(19,175)
Deferred Loan Fees Collected	221	105
Acquisition of Premises and Equipment	(178)	(376)
Proceeds from Sale of Real Estate	0	423
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities	6,262	10,335
Sale of Securities	3,555	0
Purchases of Securities	(7,717)	0
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities	2,217	1,109
Purchases of Securities	(1,174)	(27,674)
Net Cash Used In Investing Activities	233	(35,253)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits	18,149	38,622
Proceeds from Federal Home Loan Bank Advances	183,775	656,900
Repayments of Advances from Federal Home Loan Bank	(215,976)	(661,892)
Net Decrease in Advances from Borrowers for Taxes and Insurance	(183)	(279)
Dividends Paid	(695)	(529)
Company Stock Purchased	(1,493)	(592)
Proceeds from Stock Options Exercised	191	61
Proceeds from other Bank Borrowings	350	300
Repayment of Other Borrowings	(350)	(700)
Recognition and Retention Plan Share Distributions	0	0
Net Cash Provided (Used In) Financing Activities	(16,232)	31,891
NET INCREASE IN CASH AND CASH EQUIVALENTS	(3,464)	6,204
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	11,905	4,756
CASH AND CASH EQUIVALENTS - END OF PERIOD	8,441	10,960
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	2,407	1,998
Income Taxes Paid	1,236	1,522
Market Value Adjustment for Loss on Securities Available-for-Sale	$ (814)	$ (829)

XML

Summary of Accounting Policies

9 Months Ended

Mar. 31, 2018

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies

1. Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2018 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2018.

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

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2018.  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 six full-service banking offices and home office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2018, 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 as 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 uncollectability 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 collectability 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 fair value of the collateral of the loan.  If the 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.  A loan is considered a troubled debt restructuring (“TDR”) if the Company, for economic or legal reasons related to a debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider.  Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan’s stated maturity date at less than a current market rate of interest.  Loans identified as TDRs are designated as impaired.

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 known and inherent losses in the existing loan portfolio both probable and reasonable to estimate.

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. Estimated useful lives are as follows:

Buildings and Improvements	10 - 40 Years
Furniture and Equipment	3 - 10 Years

Bank-Owned Life Insurance

The Company has purchased life insurance contracts on the lives of certain key employees.  The Bank is the beneficiary of these policies.  These contracts are reported at their cash surrender value, and changes in the cash surrender value are included in non-interest income.

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.

The Company follows the provisions of the Income Taxes Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740.  ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties, and disclosures required.  The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

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.

Earnings per Share

Earnings per share are computed based upon the weighted average number of common shares outstanding during the period.

Non-Direct Response Advertising

The Company expenses all advertising costs, except for direct-response advertising, as incurred.  Non-direct response advertising costs were $117,000 and $287,000 for the nine months ended March 31, 2018 and 2017, respectively.

In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.  For the nine months ended March 31, 2018 and 2017, the Company did not incur any amount of direct-response advertising.

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.  This guidance applies to awards granted or modified after January 1, 2006 or any unvested awards outstanding prior to that date.

Reclassification

Certain financial statement balances included in the prior year consolidated financial statements have been reclassified to conform to the current period presentation.

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 balance sheets along with net income, they are components of comprehensive income (loss).

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The amendments in ASU 2014-09 supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance.  The general principle of ASU 2014-09 requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to be entitled in exchange for those goods or services.  The guidance sets forth a five-step approach to be utilized for revenue recognition.  In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 making it effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.  In April 2016, the FASB issued ASU 2016-10 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.  In May 2016, the FASB issued ASU 2016-12 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update affect only certain narrow aspects of Topic 606.  Management is currently assessing the impact to the Company’s consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet.  This update is effective for fiscal years beginning after December 15, 2017.  The guidance may be adopted prospectively or retrospectively, and early adoption is permitted.  The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments.  The amendments in this Update supersede the guidance to classify equity securities with readily determinable fair values into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income.  The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of impairment.  The amendments in this Update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period.  In addition, the amendments in this Update exempt all entities that are not public business entities from disclosing fair value information for financial instruments measured at amortized cost.  In addition, for public business entities, the amendments supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial instruments measured at amortized cost on the balance sheet.  The amendments in this Update require public business entities that are required to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion consistent with Topic 820, Fair Value Measurement.

The provisions within this Update require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option.  This amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity.  The amendments in this Update require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements.

For public business entities, the amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases.  From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.  Leases will be classified as either finance or operating, with classification affecting pattern of expense recognition in the income statement for a lessee.

The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available.  The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.  This Update is being issued as part of the Simplification Initiative.  The areas of simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  Some areas only apply to nonpublic entities.  For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods with those fiscal years.  The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323).   This Update addresses and codifies the practical considerations and application of the required disclosures under SAB Topic 11.M for the implementation of ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The SEC Staff has emphasized on a number of occasions, including the December 2016 AICPA National Conference on Current SEC and PCAOB Developments, the requirements to disclose the potential material effects of newly issued standards, and the importance of providing investors with this information. Such disclosures should explain the impact the new standard is expected to have on the financial statements, and how the adoption of the new standard will affect comparability.  Entities should discuss both quantitative and qualitative information as available when assessing implementation of a new standard.  This ASU was effective immediately for public business entities.

In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20).  This Update was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the potential for exercise of a call is factored into current impairment assessments.  As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over the period not to exceed the earliest call date.  These amendments do not apply to securities carried at a discount.  The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company does not expect ASU 2017-08 to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718).  The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in FASB ASC 718.  The effective date of this Update is for fiscal years beginning after December 15, 2018.  Early adoption is permitted, including adoption in an interim period.  The Company does not expect ASU 2017-09 to have a material impact on its consolidated financial statements.

In February 2018, the FASB issued Accounting Standards Update ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  The ASU allows reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate tax rate.  The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption of the amendments is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued.  The amendments in this update should be applied retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 is recognized.  The Company early adopted this guidance retrospectively, which resulted in a reclassification of $216,000 from accumulated other comprehensive income to retained earnings reflected in the Company's consolidated statements of financial condition as of March 31, 2018.

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Securities

9 Months Ended

Mar. 31, 2018

Securities [Abstract]

Securities

2. Securities

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

	March 31, 2018
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	7,960	$	2	$	517	$	7.445
FNMA Mortgage-Backed Certificates		13,414		1		577		12,838
GNMA Mortgage-Backed Certificates		11,207		2		258		10,951
Total Debt Securities		32,581		5		1,352		31,234
Total Securities Available-for-Sale	$	32,581	$	5	$	1,352	$	31,234
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,165	$	-	$	47	$	1,118
FNMA Mortgage-Backed Certificates		26,101		-		1,119		24,982
Total Debt Securities		27,266		-		1,166		26,100
Equity Securities (Non-Marketable)
25,840 Shares – Federal Home Loan Bank		2,584		-		-		2,584
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		2,834		-		-		2,834
Total Securities Held-to-Maturity	$	30,100	$	-	$	1,166	$	28,934

	June 30, 2017
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	9,140	$	5	$	297	$	8,848
FNMA Mortgage-Backed Certificates		19,986		256		285		19,957
GNMA Mortgage-Backed Certificates		8,342		3		215		8,130
Total Debt Securities		37,468		264		797		36,935
Total Securities Available-for-Sale	$	37,468	$	264	$	797	$	36,935
Securities Held-to-Maturity
Debt Securities
FNMA Mortgage-Backed Securities	$	25,558	$	2	$	370	$	25,190
Equity Securities (Non-Marketable)
25,488 Shares – Federal Home Loan Bank		2,549		--		--		2,549
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,799		--		--		2,799
Total Securities Held-to-Maturity	$	28,357	$	2	$	370	$	27,989

The amortized cost and fair value of securities by contractual maturity at March 31, 2018 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	2	$	2	$	-	$	-
One through Five Years		25		26		-		-
After Five through Ten Years		40		41		-		-
Over Ten Years		32,514		31,165		27,266		26,100
		32,581		31,234		27,266		26,100
Other Equity Securities		-		-		2,834		2,834
Total	$	32,581	$	31,234	$	30,100	$	28,934

Securities available-for-sale totaling $3.5 million were sold for $3.6 million during the nine months ended March 31, 2018 resulting in a gain on sale of securities of $94,000.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2018 and June 30, 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2018
	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	$	-	$	-	$	1,352	$	31,119
Marketable Equity Securities		-		-		-		-
Total Securities Available-for-Sale	$	-	$	-	$	1,352	$	31,119

	June 30, 2017
	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	$	144	$	10,278	$	653	$	21,719
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	144	$	10,278	$	653	$	21,719

The unrealized losses on the Company’s investment in mortgage-backed securities at March 31, 2018 and June 30, 2017 were caused by interest rate changes.  The contractual cash flows of these investments are guaranteed by agencies of the U.S. government.  Accordingly, it is expected that these securities would not be settled at a price less than the amortized cost of the Company’s investment.  Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2018.

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

At March 31, 2018, securities with a carrying value of $230,903 were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $155.0 million were pledged to secure FHLB advances.

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Loans Receivable

9 Months Ended

Mar. 31, 2018

Loans Receivable [Abstract]

Loans Receivable

3. Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2018			June 30, 2017
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	123,555		$	125,306
Commercial		75,029			77,945
Multi-Family Residential		34,092			21,281
Land		19,690			25,038
Construction		10,264			9,529
Equity and Second Mortgage		1,566			1,710
Equity Lines of Credit		19,538			20,976
Total Mortgage Loans		283,734			281,785
Commercial Loans		33,810			34,429
Consumer Loans
Loans on Savings Accounts		429			420
Other Consumer Loans		189			63
Total Consumer Loans		618			483
Total Loans		318,162			316,697
Less:   Allowance for Loan Losses		(3,693	)		(3,729	)
Unamortized Loan Fees		(302	)		(196	)
Net Loans Receivable	$	314,167		$	312,772

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

	Nine Months Ended March 31,
	2018			2017
	(In Thousands)
Balance - Beginning of Period	$	3,729		$	2,845
Provision for Loan Losses		850			755
Loan Charge-Offs		(911	)		(30	)
Recoveries		25			12
Balance - End of Period	$	3,693		$	3,582

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:

Pass - Loans classified as pass are well protected by the current net worth or paying capacity of the obligor or by the fair value, less cost to acquire and sell the underlying collateral in a timely manner.

Pass Watch - Loans are considered marginal, meaning some weakness has been identified which could cause future impairment of repayment. However, these relationships are currently protected from any apparent loss by collateral.

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

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

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

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

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2018 and June 30, 2017:

March 31, 2018	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	122,300	$	108	$	1,147	$	-	$	123,555
Commercial		70,817		-		4,212		-		75,029
Multi-Family Residential		34,092		-		-		-		34,092
Land		19,690		-		-		-		19,690
Construction		10,264		-		-		-		10,264
Equity and Second Mortgage		1,394		59		113		-		1,566
Equity Lines of Credit		19,538		-		-		-		19,538
Commercial Loans		31,749		-		2,061		-		33,810
Consumer Loans		618		-		-		-		618
Total	$	310,462	$	167	$	7,533	$	-	$	318,162

June 30, 2017	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	124,450	$	303	$	553	$	--	$	125,306
Commercial		77,690		--		255		--		77,945
Multi-Family Residential		21,281		--		--		--		21,281
Land		24,915		123		--		--		25,038
Construction		9,232		297		--		--		9,529
Equity and Second Mortgage		1,710		--		--		--		1,710
Equity Lines of Credit		20,976		--		--		--		20,976
Commercial Loans		31,926		--		2,503		--		34,429
Consumer Loans		483		--		--		--		483
Total	$	312,663	$	723	$	3,311	$	--	$	316,697

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 March 31, 2018 and June 30, 2017:

March 31, 2018	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	$	3,112	$	390	$	1,055	$	4,557	$	118,998	$	123,555	$	86
Commercial		--		--		--		--		75,029		75,029		--
Multi-Family Residential		--		--		--		--		34,092		34,092		--
Land		--		--		--		--		19,690		19,690		--
Construction		--		--		--		--		10,264		10,264		--
Equity and Second Mortgage		87		--		--		87		1,479		1,566		--
Equity Lines of Credit		205		97		190		492		19,046		19,538		170
Commercial Loans		--		--		1,604		1,604		32,206		33,810		--
Consumer Loans		--		--		--		--		618		618		--
Total	$	3,404	$	487	$	2,849	$	6,740	$	311,422	$	318,162	$	256

June 30, 2017	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	$	1,650	$	350	$	662	$	2,662	$	122,644	$	125,306	$	181
Commercial		8		--		--		8		77,937		77,945		--
Multi-Family Residential		--		--		--		--		21,281		21,281		--
Land		--		--		--		--		25,038		25,038		--
Construction		--		--		--		--		9,529		9,529		--
Equity and Second Mortgage		--		--		--		--		1,710		1,710		--
Equity Lines of Credit		194		--		4		198		20,778		20,976		4
Commercial Loans		--		--		2,503		2,503		31,926		34,429		--
Consumer Loans		--		--		--		--		483		483		--
Total	$	1,852	$	350	$	3,169	$	5,371	$	311,326	$	316,697	$	185

There was no interest income recognized on non-accrual loans during the nine months ended March 31, 2018 or year ended June 30, 2017. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the nine months ended March 31, 2018 and year ended June 30, 2017 was approximately $78,000 and $79,000, respectively.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2018 was as follows:

	Real Estate Loans
March 31, 2018	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	$	1,822		$	353	$	73	$	203		$	147	$	142		$	979		$	10		$	3,729
Charge-Offs		--			--		--		(109	)		--		(5	)		(797	)		--			(911	)
Recoveries		5			--		--		20			--		--			--			--			25
Current Provision		(735	)		146		99		41			67		58			1,181			(7	)		850
Ending Balances	$	1,092		$	499	$	172	$	155		$	214	$	195		$	1,363		$	3		$	3,693
Evaluated for Impairment:
Individually		--			--		--		--			--		--			--			--			--
Collectively	$	1,092		$	499	$	172	$	155			214	$	195		$	1,363		$	3			3,693
Loans Receivable:
Ending Balances – Total	$	123,555		$	75,029	$	34,092	$	19,690		$	10,264	$	21,104		$	33,810		$	618		$	318,162
Ending Balances Evaluated
for Impairment:
Individually		1,255			4,212		--		--			--		172			2,061			--			7,700
Collectively	$	122,300		$	70,817	$	34,092	$	19,690		$	10,264	$	20,932		$	31,749		$	618		$	310,462

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the year ended June 30, 2017 was as follows:

	Real Estate Loans
June 30, 2017	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	$	1,517	$	321	$	111		$	201		$	126	$	117		$	444	$	8	$	2,845
Charge-Offs		--		--		--			(16	)		--		(14	)		--		--		(30	)
Recoveries		14		--		--			--			--		--			--		--		14
Current Provision		291		32		(38	)		18			21		39			535		2		900
Ending Balances	$	1,822	$	353	$	73		$	203		$	147	$	142		$	979	$	10	$	3,729
Evaluated for Impairment:
Individually		--		--		--			--			--		--			--		--		--
Collectively		1,822		353		73			203			147		142			979		10		3,729
Loans Receivable:
Ending Balances - Total	$	125,306	$	77,945	$	21,281		$	25,038		$	9,529	$	22,686		$	34,429	$	483	$	316,697
Ending Balances Evaluated
for Impairment:
Individually		856		255		--			123			297		--			2,503		--		4,034
Collectively	$	124,450	$	77,690	$	21,281		$	24,915		$	9,232	$	22,686		$	31,926	$	483	$	312,663

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2017 was as follows:

	Real Estate Loans
March 31, 2017	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	$	1,517	$	321	$	111		$	201		$	126	$	117		$	444	$	8		$	2,845
Charge-Offs		--		--		--			(16	)		--		(14	)		--		--			(30	)
Recoveries		12		--		--			--			--		--			--		--			12
Current Provision		212		17		(31	)		14			31		35			485		(8	)		755
Ending Balances	$	1,741	$	338	$	80		$	199		$	157	$	138		$	929	$	--		$	3,582
Evaluated for Impairment:
Individually		--		--		--			--			--		--			--		--			--
Collectively		1,741		338		80			199			157		138			929		--			3,582
Loans Receivable:
Ending Balances – Total	$	120,446	$	73,948	$	19,050		$	24,399		$	13,821	$	21,636		$	35,540	$	442		$	309,282
Ending Balances:
Evaluated for Impairment:
Individually		803		261		--			123			298		--			2,513		--			3,998
Collectively	$	119,643	$	73,687	$	19,050		$	24,276		$	13,523	$	21,636		$	33,027	$	442		$	305,284

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2018 and June 30, 2017:

March 31, 2018	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	$	1,255	$	1,255	$	--	$	1,255	$	--	$	1,146
Commercial		4,212		4,212		--		4,212		--		4,205
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		172		172		--		172		--		188
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		2,061		2,061		--		2,061		--		2,102
Consumer Loans		--		--		--		--		--		--
Total	$	7,700	$	7,700	$	--	$	7,700	$	--	$	7,641

June 30, 2017	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	$	856	$	856	$	--	$	856	$	--	$	861
Commercial		255		255		--		255		--		261
Multi-Family Residential		--		--		--		--		--		--
Land		123		123		--		123		--		125
Construction		297		297		--		297		--		299
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		2,513		2,513		--		2,513		--		2,649
Consumer Loans		--		--		--		--		--		--
Total	$	4,044	$	4,044	$	--	$	4,044	$	--	$	4,195

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

A troubled debt restructuring (“TDR”) is a restructuring of a debt made by the Company to a debtor for economic or legal reasons related to the debtor’s financial difficulties that it would not otherwise consider.  The Company grants the concession in an attempt to protect as much of its investment as possible.

Information about the Company’s TDRs is as follows (in thousands):

	March 31, 2018
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial business	$	4,745	$	1,604	$	1,604	$	6,349
	June 30, 2017
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial business	$	--	$	1,717	$	1,717	$	1,717

At bothMarch 31, 2018 and June 30, 2017, the bank had troubled debt restructuring involving nine commercial loan contracts to one borrower with a recorded investment of approximately $1.6 million along with another troubled debt restructuring classification during the quarter ending March 31, 2018 involving five commercial loans totaling $4.7 million that are current on all interest payments due with no expected losses at this time.  For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology.  If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans. As of March 31, 2018, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.

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Deposits

9 Months Ended

Mar. 31, 2018

Deposits [Abstract]

Deposits

4. Deposits

Deposits at March 31, 2018 and June 30, 2017 consist of the following classifications:

	March 31, 2018		June 30, 2017
	(In Thousands)
Non-Interest Bearing	$	53,194	$	54,420
NOW Accounts		32,811		34,500
Money Markets		61,685		42,439
Passbook Savings		36,257		35,050
		183,947		166,409
Certificates of Deposit		163,247		162,636
Total Deposits	$	347,194	$	329,045

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Earnings Per Share

9 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and nine months ended March 31, 2018 and 2017 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(In Thousands, Except Per Share Data)
Net income	$	1,021	$	852	$	2,391	$	2,617
Weighted average shares outstanding - basic		1,793		1,819		1,804		1,814
Effect of dilutive common stock equivalents		102		109		100		88
Adjusted weighted average shares outstanding - diluted		1,895		1,928		1,904		1,902
Basic earnings per share	$	0.57	$	0.47	$	1.33	$	1.44
Diluted earnings per share	$	0.54	$	0.44	$	1.26	$	1.38

For the three months ended March 31, 2018 and 2017, there were outstanding options to purchase 296,551 and 301,334 shares, respectively, at a weighted average exercise price of $17.88 and $17.82 per share, respectively and for the nine months ended March 31, 2018 and 2017, there were outstanding options to purchase 296,551 and 302,517 shares, respectively, at a weighted average exercise price of $17.88 and $17.81 per share, respectively. For the quarter ended March 31, 2018 and 2017, 102,413 options and 109,145 options, respectively, were included in the computation of diluted earnings per share.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(114	)		(125	)		(116	)		(129	)
Average unearned RRP shares		(3	)		(10	)		(3	)		(16	)
Average Company stock purchased		(1,152	)		(1,108	)		(1,139	)		(1,103	)
Weighted average shares outstanding		1,793			1,819			1,804			1,814

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Stock-Based Compensation

9 Months Ended

Mar. 31, 2018

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6. Stock-Based Compensation

Recognition and Retention Plan

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 “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 Recognition Plan totaled 77,808 shares, all of which were awarded as of March 31, 2018.

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 will 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 cost associated with the Recognition Plan is based on share prices of $14.70 and $18.92 on January 31, 2012 and July 31, 2014, respectively, which represents the fair market price of the Company’s stock on the dates on which the Recognition Plan shares were granted. The cost of the Recognition Plan is being recognized over the five year vesting period.  Compensation expense pertaining to the Recognition Plan was $21,000 and $140,000, for the nine months ended March 31, 2018 and 2017, respectively.

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.  The 2005 Stock Option Plan terminated on June 8, 2015, however outstanding stock options will remain in effect for the remainder of their original ten year terms.

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.

On August 19, 2010 and July 31, 2014, the Company granted 21,616 options and 2,133 options, respectively, under the 2005 Option Plan that were previously forfeited (as adjusted for the conversion) at an exercise price of $10.93 and $18.92 per share, respectively.  On January 31, 2012 and July 31, 2014, 165,344 options and 29,178 options, respectively, were granted to directors and employees at an exercise price of $14.70 and $18.92 per share, respectively, under the 2011 Option Plan.  As of March 31, 2018, there were 389 stock options available for future grant under the 2011 Option Plan.

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.

Incentive stock options and non-qualified stock options granted under the Option Plan become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee’s employment or service as a director is terminated.  In the event of death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and exercisable.  The Company recognizes compensation expense during the vesting period based on the fair value of the option on the date of the grant.  For both nine months ended March 31, 2018 and 2017, compensation expense charged to operations was $101,000.

Stock Incentive Plan

On November 12, 2014, the shareholders of the Company approved the adoption of the Company’s 2014 Stock Incentive Plan (the “Stock Incentive Plan”) for the benefit of employees and non-employee directors as an incentive to contribute to the success of the Company and reward employees for outstanding performance and the attainment of targeted goals.  The Stock Incentive Plan covers a total of 150,000 shares, of which no more than 37,500 shares, or 25% of the plan, may be share rewards.  The balance of the plan is reserved for stock option awards which would total 112,500 stock options, assuming all the share awards are issued. All incentive stock options granted under the Stock Incentive Plan are intended to comply with the requirements of Section 422 of the Internal Revenue Code.  On October 26, 2015, the Company granted a total of 34,500 plan share awards and 103,500 stock options to directors, officers, and other key employees vesting ratably over five years. The Stock Incentive Plan cost is recognized over the five year vesting period. During the nine months ended March 31, 2018 and March 31, 2017 the Company recognized $102,000 and $197,000, respectively, in expenses related to the Stock Incentive Plan.

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Related Party Transactions

9 Months Ended

Mar. 31, 2018

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 $2.6 million and $2.8 million at March 31, 2018 and June 30, 2017, respectively.

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Fair Value Disclosures

9 Months Ended

Mar. 31, 2018

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.

Investment Securities

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.

At March 31, 2018 and June 30, 2017, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2018				June 30, 2017
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,441	$	8,441	$	11,905	$	11,905
Securities Available-for-Sale		31,234		31,234		36,935		36,935
Securities to be Held-to-Maturity		30,100	28,934			28,357		27,989
Loans Held-for-Sale		5,389		5,389		13,631		13,631
Loans Receivable		314,167	310,038			312,772		301,741
Financial Liabilities
Deposits		347,194	333,617		$	329,045	$	313,514
Advances from FHLB		16,706	16,575			48,907		48,918
Off-Balance Sheet Items
Mortgage Loan Commitments	$	5,152	$	5,152	$	457	$	457

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 instruments 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.

The preceding methods described may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values.  Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.  There have been no changes in the methodologies used during the nine months ended March 31, 2018.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2018 and June 30, 2017 are as follows:

	Fair Value Measurements Using:
March 31, 2018	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	$	-	$	7,445	$	-	$	7,445
FNMA		-		12,838		-		12,838
GNMA		-		10,951		-		10,951
Total	$	-	$	31,234	$	-	$	31,234

	Fair Value Measurements Using:
June 30, 2017	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	$	--	$	8,848	$	--	$	8,848
FNMA		--		19,957		--		19,957
GNMA		--		8,130		--		8,130
Total	$	--	$	36,935	$	--	$	36,935

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Subsequent Events

9 Months Ended

Mar. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

9. Subsequent Events

In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date that the consolidated financial statements were available to be issued.  The effect of all subsequent events that provided additional evidence of conditions that existed at the balance sheet date are recognized in the consolidated financial statements as of March 31, 2018.  In preparing these consolidated financial statements, the company evaluated the events and transactions that occurred through the date these consolidated financial statements were issued.

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Summary of Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2018

Summary of Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2018 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2018.

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

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2018.  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 six full-service banking offices and home office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2018, 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 as 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 uncollectability 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 collectability 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 fair value of the collateral of the loan.  If the 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.  A loan is considered a troubled debt restructuring (“TDR”) if the Company, for economic or legal reasons related to a debtor’s financial difficulties, grants a concession to the debtor that it would not otherwise consider.  Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan’s stated maturity date at less than a current market rate of interest.  Loans identified as TDRs are designated as impaired.

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 known and inherent losses in the existing loan portfolio both probable and reasonable to estimate.

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. Estimated useful lives are as follows:

Buildings and Improvements	10 - 40 Years
Furniture and Equipment	3 - 10 Years

Bank-Owned Life Insurance

Bank-Owned Life Insurance

The Company has purchased life insurance contracts on the lives of certain key employees.  The Bank is the beneficiary of these policies.  These contracts are reported at their cash surrender value, and changes in the cash surrender value are included in non-interest income.

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.

The Company follows the provisions of the Income Taxes Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740.  ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties, and disclosures required.  The Company recognizes interest and penalties, if any, related to unrecognized tax benefits in income tax expense.

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.

Earnings per Share

Earnings per Share

Earnings per share are computed based upon the weighted average number of common shares outstanding during the period.

Non-Direct Response Advertising

Non-Direct Response Advertising

The Company expenses all advertising costs, except for direct-response advertising, as incurred.  Non-direct response advertising costs were $117,000 and $287,000 for the nine months ended March 31, 2018 and 2017, respectively.

In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.  For the nine months ended March 31, 2018 and 2017, the Company did not incur any amount of direct-response advertising.

Stock-Based Compensation

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.  This guidance applies to awards granted or modified after January 1, 2006 or any unvested awards outstanding prior to that date.

Reclassification

Reclassification

Certain financial statement balances included in the prior year consolidated financial statements have been reclassified to conform to the current period presentation.

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 balance sheets along with net income, they are components of comprehensive income (loss).

Recent Accounting Pronouncements

Recent Accounting Pronouncements

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  The amendments in ASU 2014-09 supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance.  The general principle of ASU 2014-09 requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to be entitled in exchange for those goods or services.  The guidance sets forth a five-step approach to be utilized for revenue recognition.  In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 making it effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.  In April 2016, the FASB issued ASU 2016-10 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.  In May 2016, the FASB issued ASU 2016-12 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update affect only certain narrow aspects of Topic 606.  Management is currently assessing the impact to the Company’s consolidated financial statements.

In November 2015, the FASB issued ASU No. 2015-17, Income Taxes: Balance Sheet Classification of Deferred Taxes, which simplifies the presentation of deferred taxes by requiring deferred tax assets and liabilities to be classified as non-current on the balance sheet.  This update is effective for fiscal years beginning after December 15, 2017.  The guidance may be adopted prospectively or retrospectively, and early adoption is permitted.  The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In January 2016, the FASB issued ASU 2016-01, Financial Instruments.  The amendments in this Update supersede the guidance to classify equity securities with readily determinable fair values into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income.  The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of impairment.  The amendments in this Update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period.  In addition, the amendments in this Update exempt all entities that are not public business entities from disclosing fair value information for financial instruments measured at amortized cost.  In addition, for public business entities, the amendments supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial instruments measured at amortized cost on the balance sheet.  The amendments in this Update require public business entities that are required to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion consistent with Topic 820, Fair Value Measurement.

The provisions within this Update require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option.  This amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity.  The amendments in this Update require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements.

For public business entities, the amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases.  From the lessee’s perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record a ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.  Leases will be classified as either finance or operating, with classification affecting pattern of expense recognition in the income statement for a lessee.

The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available.  The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting.  This Update is being issued as part of the Simplification Initiative.  The areas of simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  Some areas only apply to nonpublic entities.  For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  The adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods with those fiscal years.  The adoption of this standard is not expected to have a material impact on the Company’s consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323).   This Update addresses and codifies the practical considerations and application of the required disclosures under SAB Topic 11.M for the implementation of ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The SEC Staff has emphasized on a number of occasions, including the December 2016 AICPA National Conference on Current SEC and PCAOB Developments, the requirements to disclose the potential material effects of newly issued standards, and the importance of providing investors with this information. Such disclosures should explain the impact the new standard is expected to have on the financial statements, and how the adoption of the new standard will affect comparability.  Entities should discuss both quantitative and qualitative information as available when assessing implementation of a new standard.  This ASU was effective immediately for public business entities.

In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20).  This Update was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the potential for exercise of a call is factored into current impairment assessments.  As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over the period not to exceed the earliest call date.  These amendments do not apply to securities carried at a discount.  The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company does not expect ASU 2017-08 to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASU 2017-09, Compensation – Stock Compensation (Topic 718).  The amendments in this ASU provide guidance about which changes to the terms or conditions of a share-based payment award require an entity to apply modification accounting in FASB ASC 718.  The effective date of this Update is for fiscal years beginning after December 15, 2018.  Early adoption is permitted, including adoption in an interim period.  The Company does not expect ASU 2017-09 to have a material impact on its consolidated financial statements.

In February 2018, the FASB issued Accounting Standards Update ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  The ASU allows reclassification from accumulated other comprehensive income (loss) to retained earnings for stranded tax effects resulting from the newly enacted federal corporate tax rate.  The amendments in this update are effective for all entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption of the amendments is permitted, including adoption in any interim period, for public business entities for reporting periods for which financial statements have not yet been issued.  The amendments in this update should be applied retrospectively to each period (or periods) in which the effect of the change in the U.S. federal corporate income tax rate in the Tax Cuts and Jobs Act of 2017 is recognized.  The Company early adopted this guidance retrospectively, which resulted in a reclassification of $216,000 from accumulated other comprehensive income to retained earnings reflected in the Company's consolidated statements of financial condition as of March 31, 2018.

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Summary of Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2018

Summary of Accounting Policies [Abstract]

Estimated Useful Lives

Estimated useful lives are as follows:

Buildings and Improvements	10 - 40 Years
Furniture and Equipment	3 - 10 Years

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Securities (Tables)

9 Months Ended

Mar. 31, 2018

Securities [Abstract]

Amortized Cost and Fair Value of Securities, with Gross Unrealized Gains and Losses

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

	March 31, 2018
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	7,960	$	2	$	517	$	7.445
FNMA Mortgage-Backed Certificates		13,414		1		577		12,838
GNMA Mortgage-Backed Certificates		11,207		2		258		10,951
Total Debt Securities		32,581		5		1,352		31,234
Total Securities Available-for-Sale	$	32,581	$	5	$	1,352	$	31,234
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,165	$	-	$	47	$	1,118
FNMA Mortgage-Backed Certificates		26,101		-		1,119		24,982
Total Debt Securities		27,266		-		1,166		26,100
Equity Securities (Non-Marketable)
25,840 Shares – Federal Home Loan Bank		2,584		-		-		2,584
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		2,834		-		-		2,834
Total Securities Held-to-Maturity	$	30,100	$	-	$	1,166	$	28,934

	June 30, 2017
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	9,140	$	5	$	297	$	8,848
FNMA Mortgage-Backed Certificates		19,986		256		285		19,957
GNMA Mortgage-Backed Certificates		8,342		3		215		8,130
Total Debt Securities		37,468		264		797		36,935
Total Securities Available-for-Sale	$	37,468	$	264	$	797	$	36,935
Securities Held-to-Maturity
Debt Securities
FNMA Mortgage-Backed Securities	$	25,558	$	2	$	370	$	25,190
Equity Securities (Non-Marketable)
25,488 Shares – Federal Home Loan Bank		2,549		--		--		2,549
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,799		--		--		2,799
Total Securities Held-to-Maturity	$	28,357	$	2	$	370	$	27,989

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities by contractual maturity at March 31, 2018 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	2	$	2	$	-	$	-
One through Five Years		25		26		-		-
After Five through Ten Years		40		41		-		-
Over Ten Years		32,514		31,165		27,266		26,100
		32,581		31,234		27,266		26,100
Other Equity Securities		-		-		2,834		2,834
Total	$	32,581	$	31,234	$	30,100	$	28,934

Information Pertaining to Securities with Gross Unrealized Losses, Continuous Loss Position

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2018 and June 30, 2017 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2018
	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	$	-	$	-	$	1,352	$	31,119
Marketable Equity Securities		-		-		-		-
Total Securities Available-for-Sale	$	-	$	-	$	1,352	$	31,119

	June 30, 2017
	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	$	144	$	10,278	$	653	$	21,719
Marketable Equity Securities		--		--		--		--
Total Securities Available-for-Sale	$	144	$	10,278	$	653	$	21,719

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Loans Receivable (Tables)

9 Months Ended

Mar. 31, 2018

Loans Receivable [Abstract]

Summary of Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2018			June 30, 2017
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	123,555		$	125,306
Commercial		75,029			77,945
Multi-Family Residential		34,092			21,281
Land		19,690			25,038
Construction		10,264			9,529
Equity and Second Mortgage		1,566			1,710
Equity Lines of Credit		19,538			20,976
Total Mortgage Loans		283,734			281,785
Commercial Loans		33,810			34,429
Consumer Loans
Loans on Savings Accounts		429			420
Other Consumer Loans		189			63
Total Consumer Loans		618			483
Total Loans		318,162			316,697
Less:   Allowance for Loan Losses		(3,693	)		(3,729	)
Unamortized Loan Fees		(302	)		(196	)
Net Loans Receivable	$	314,167		$	312,772

Analysis of Allowance for Loan Losses

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

	Nine Months Ended March 31,
	2018			2017
	(In Thousands)
Balance - Beginning of Period	$	3,729		$	2,845
Provision for Loan Losses		850			755
Loan Charge-Offs		(911	)		(30	)
Recoveries		25			12
Balance - End of Period	$	3,693		$	3,582

Grading of Loans, Segregated by Class of Loans

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2018 and June 30, 2017:

March 31, 2018	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	122,300	$	108	$	1,147	$	-	$	123,555
Commercial		70,817		-		4,212		-		75,029
Multi-Family Residential		34,092		-		-		-		34,092
Land		19,690		-		-		-		19,690
Construction		10,264		-		-		-		10,264
Equity and Second Mortgage		1,394		59		113		-		1,566
Equity Lines of Credit		19,538		-		-		-		19,538
Commercial Loans		31,749		-		2,061		-		33,810
Consumer Loans		618		-		-		-		618
Total	$	310,462	$	167	$	7,533	$	-	$	318,162

June 30, 2017	Pass		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	124,450	$	303	$	553	$	--	$	125,306
Commercial		77,690		--		255		--		77,945
Multi-Family Residential		21,281		--		--		--		21,281
Land		24,915		123		--		--		25,038
Construction		9,232		297		--		--		9,529
Equity and Second Mortgage		1,710		--		--		--		1,710
Equity Lines of Credit		20,976		--		--		--		20,976
Commercial Loans		31,926		--		2,503		--		34,429
Consumer Loans		483		--		--		--		483
Total	$	312,663	$	723	$	3,311	$	--	$	316,697

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 March 31, 2018 and June 30, 2017:

March 31, 2018	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	$	3,112	$	390	$	1,055	$	4,557	$	118,998	$	123,555	$	86
Commercial		--		--		--		--		75,029		75,029		--
Multi-Family Residential		--		--		--		--		34,092		34,092		--
Land		--		--		--		--		19,690		19,690		--
Construction		--		--		--		--		10,264		10,264		--
Equity and Second Mortgage		87		--		--		87		1,479		1,566		--
Equity Lines of Credit		205		97		190		492		19,046		19,538		170
Commercial Loans		--		--		1,604		1,604		32,206		33,810		--
Consumer Loans		--		--		--		--		618		618		--
Total	$	3,404	$	487	$	2,849	$	6,740	$	311,422	$	318,162	$	256

June 30, 2017	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	$	1,650	$	350	$	662	$	2,662	$	122,644	$	125,306	$	181
Commercial		8		--		--		8		77,937		77,945		--
Multi-Family Residential		--		--		--		--		21,281		21,281		--
Land		--		--		--		--		25,038		25,038		--
Construction		--		--		--		--		9,529		9,529		--
Equity and Second Mortgage		--		--		--		--		1,710		1,710		--
Equity Lines of Credit		194		--		4		198		20,778		20,976		4
Commercial Loans		--		--		2,503		2,503		31,926		34,429		--
Consumer Loans		--		--		--		--		483		483		--
Total	$	1,852	$	350	$	3,169	$	5,371	$	311,326	$	316,697	$	185

Allowance for Loan Losses and Recorded Investment in Loans

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2018 was as follows:

	Real Estate Loans
March 31, 2018	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	$	1,822		$	353	$	73	$	203		$	147	$	142		$	979		$	10		$	3,729
Charge-Offs		--			--		--		(109	)		--		(5	)		(797	)		--			(911	)
Recoveries		5			--		--		20			--		--			--			--			25
Current Provision		(735	)		146		99		41			67		58			1,181			(7	)		850
Ending Balances	$	1,092		$	499	$	172	$	155		$	214	$	195		$	1,363		$	3		$	3,693
Evaluated for Impairment:
Individually		--			--		--		--			--		--			--			--			--
Collectively	$	1,092		$	499	$	172	$	155			214	$	195		$	1,363		$	3			3,693
Loans Receivable:
Ending Balances – Total	$	123,555		$	75,029	$	34,092	$	19,690		$	10,264	$	21,104		$	33,810		$	618		$	318,162
Ending Balances Evaluated
for Impairment:
Individually		1,255			4,212		--		--			--		172			2,061			--			7,700
Collectively	$	122,300		$	70,817	$	34,092	$	19,690		$	10,264	$	20,932		$	31,749		$	618		$	310,462

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the year ended June 30, 2017 was as follows:

	Real Estate Loans
June 30, 2017	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	$	1,517	$	321	$	111		$	201		$	126	$	117		$	444	$	8	$	2,845
Charge-Offs		--		--		--			(16	)		--		(14	)		--		--		(30	)
Recoveries		14		--		--			--			--		--			--		--		14
Current Provision		291		32		(38	)		18			21		39			535		2		900
Ending Balances	$	1,822	$	353	$	73		$	203		$	147	$	142		$	979	$	10	$	3,729
Evaluated for Impairment:
Individually		--		--		--			--			--		--			--		--		--
Collectively		1,822		353		73			203			147		142			979		10		3,729
Loans Receivable:
Ending Balances - Total	$	125,306	$	77,945	$	21,281		$	25,038		$	9,529	$	22,686		$	34,429	$	483	$	316,697
Ending Balances Evaluated
for Impairment:
Individually		856		255		--			123			297		--			2,503		--		4,034
Collectively	$	124,450	$	77,690	$	21,281		$	24,915		$	9,232	$	22,686		$	31,926	$	483	$	312,663

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2017 was as follows:

	Real Estate Loans
March 31, 2017	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	$	1,517	$	321	$	111		$	201		$	126	$	117		$	444	$	8		$	2,845
Charge-Offs		--		--		--			(16	)		--		(14	)		--		--			(30	)
Recoveries		12		--		--			--			--		--			--		--			12
Current Provision		212		17		(31	)		14			31		35			485		(8	)		755
Ending Balances	$	1,741	$	338	$	80		$	199		$	157	$	138		$	929	$	--		$	3,582
Evaluated for Impairment:
Individually		--		--		--			--			--		--			--		--			--
Collectively		1,741		338		80			199			157		138			929		--			3,582
Loans Receivable:
Ending Balances – Total	$	120,446	$	73,948	$	19,050		$	24,399		$	13,821	$	21,636		$	35,540	$	442		$	309,282
Ending Balances:
Evaluated for Impairment:
Individually		803		261		--			123			298		--			2,513		--			3,998
Collectively	$	119,643	$	73,687	$	19,050		$	24,276		$	13,523	$	21,636		$	33,027	$	442		$	305,284

Loans Individually Evaluated for Impairment Segregated by Class of Loans

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2018 and June 30, 2017:

March 31, 2018	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	$	1,255	$	1,255	$	--	$	1,255	$	--	$	1,146
Commercial		4,212		4,212		--		4,212		--		4,205
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		172		172		--		172		--		188
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		2,061		2,061		--		2,061		--		2,102
Consumer Loans		--		--		--		--		--		--
Total	$	7,700	$	7,700	$	--	$	7,700	$	--	$	7,641

June 30, 2017	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	$	856	$	856	$	--	$	856	$	--	$	861
Commercial		255		255		--		255		--		261
Multi-Family Residential		--		--		--		--		--		--
Land		123		123		--		123		--		125
Construction		297		297		--		297		--		299
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		2,513		2,513		--		2,513		--		2,649
Consumer Loans		--		--		--		--		--		--
Total	$	4,044	$	4,044	$	--	$	4,044	$	--	$	4,195

Information about TDRs

Information about the Company’s TDRs is as follows (in thousands):

	March 31, 2018
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial business	$	4,745	$	1,604	$	1,604	$	6,349
	June 30, 2017
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial business	$	--	$	1,717	$	1,717	$	1,717

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Deposits (Tables)

9 Months Ended

Mar. 31, 2018

Deposits [Abstract]

Components of Deposits

Deposits at March 31, 2018 and June 30, 2017 consist of the following classifications:

	March 31, 2018		June 30, 2017
	(In Thousands)
Non-Interest Bearing	$	53,194	$	54,420
NOW Accounts		32,811		34,500
Money Markets		61,685		42,439
Passbook Savings		36,257		35,050
		183,947		166,409
Certificates of Deposit		163,247		162,636
Total Deposits	$	347,194	$	329,045

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Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2018

Earnings Per Share [Abstract]

Calculation of Earnings per Share

Earnings per share for the three and nine months ended March 31, 2018 and 2017 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2018		2017		2018		2017
	(In Thousands, Except Per Share Data)
Net income	$	1,021	$	852	$	2,391	$	2,617
Weighted average shares outstanding - basic		1,793		1,819		1,804		1,814
Effect of dilutive common stock equivalents		102		109		100		88
Adjusted weighted average shares outstanding - diluted		1,895		1,928		1,904		1,902
Basic earnings per share	$	0.57	$	0.47	$	1.33	$	1.44
Diluted earnings per share	$	0.54	$	0.44	$	1.26	$	1.38

Components of Weighted Average Outstanding Shares

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2018			2017			2018			2017
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(114	)		(125	)		(116	)		(129	)
Average unearned RRP shares		(3	)		(10	)		(3	)		(16	)
Average Company stock purchased		(1,152	)		(1,108	)		(1,139	)		(1,103	)
Weighted average shares outstanding		1,793			1,819			1,804			1,814

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Fair Value Disclosures (Tables)

9 Months Ended

Mar. 31, 2018

Fair Value Disclosures [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

At March 31, 2018 and June 30, 2017, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2018				June 30, 2017
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,441	$	8,441	$	11,905	$	11,905
Securities Available-for-Sale		31,234		31,234		36,935		36,935
Securities to be Held-to-Maturity		30,100	28,934			28,357		27,989
Loans Held-for-Sale		5,389		5,389		13,631		13,631
Loans Receivable		314,167	310,038			312,772		301,741
Financial Liabilities
Deposits		347,194	333,617		$	329,045	$	313,514
Advances from FHLB		16,706	16,575			48,907		48,918
Off-Balance Sheet Items
Mortgage Loan Commitments	$	5,152	$	5,152	$	457	$	457

Fair Values of Assets and Liabilities Measured on a Recurring Basis

Fair values of assets and liabilities measured on a recurring basis at March 31, 2018 and June 30, 2017 are as follows:

	Fair Value Measurements Using:
March 31, 2018	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	$	-	$	7,445	$	-	$	7,445
FNMA		-		12,838		-		12,838
GNMA		-		10,951		-		10,951
Total	$	-	$	31,234	$	-	$	31,234

	Fair Value Measurements Using:
June 30, 2017	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	$	--	$	8,848	$	--	$	8,848
FNMA		--		19,957		--		19,957
GNMA		--		8,130		--		8,130
Total	$	--	$	36,935	$	--	$	36,935

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Summary of Accounting Policies (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018 USD ($)	Mar. 31, 2017 USD ($)	Mar. 31, 2018 USD ($) Office Subsidiary	Mar. 31, 2017 USD ($)
Nature of Operations [Abstract]
Number of wholly-owned subsidiaries | Subsidiary			1
Non-Direct Response Advertising [Abstract]
Non-direct response advertising costs	$ 47	$ 121	$ 117	$ 287
Direct-response advertising costs			$ 0	$ 0
Buildings and Improvements [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives			10 years
Buildings and Improvements [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives			40 years
Furniture and Equipment [Member] | Minimum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives			3 years
Furniture and Equipment [Member] | Maximum [Member]
Property, Plant and Equipment [Line Items]
Estimated useful lives			10 years
Shreveport [Member]
Nature of Operations [Abstract]
Number of full-service banking offices | Office			6
ASU 2018-02 [Member] | Retained Earnings [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclsssification from accumulated other comprehensive income to retained earnings resulting from adoption of new accounting guidance	216		$ 216
ASU 2018-02 [Member] | Accumulated Other Comprehensive Income [Member]
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Reclsssification from accumulated other comprehensive income to retained earnings resulting from adoption of new accounting guidance	$ (216)		$ (216)

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Securities, Amortized Cost and Fair Value of Securities, with Gross Unrealized Gains and Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 32,581	$ 37,468
Gross Unrealized Gains	5	264
Gross Unrealized Losses	1,352	797
Fair Value	31,234	36,935
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	32,581	37,468
Gross Unrealized Gains	5	264
Gross Unrealized Losses	1,352	797
Fair value	31,234	36,935
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	30,100	28,357
Gross Unrealized Gains	0	2
Gross Unrealized Losses	1,166	370
Fair Value	28,934	27,989
Debt Securities [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	27,266
Gross Unrealized Gains	0
Gross Unrealized Losses	1,166
Fair Value	26,100
GNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,165
Gross Unrealized Gains	0
Gross Unrealized Losses	47
Fair Value	1,118
FNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	26,101	25,558
Gross Unrealized Gains	0	2
Gross Unrealized Losses	1,119	370
Fair Value	24,982	25,190
Equity Securities (Non-Marketable) [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	2,834	2,799
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,834	2,799
Federal Home Loan Bank [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	2,584	2,549
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 2,584	$ 2,549
Number of equity securities (in shares)	25,840	25,488
First National Bankers Bankshares, Inc. [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 250	$ 250
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 250	$ 250
Number of equity securities (in shares)	630	630
FHLMC Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 7,960	$ 9,140
Gross Unrealized Gains	2	5
Gross Unrealized Losses	517	297
Fair Value	7,445	8,848
FNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	13,414	19,986
Gross Unrealized Gains	1	256
Gross Unrealized Losses	577	285
Fair Value	12,838	19,957
GNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	11,207	8,342
Gross Unrealized Gains	2	3
Gross Unrealized Losses	258	215
Fair Value	$ 10,951	$ 8,130

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Securities, Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	$ 2
One through Five Years	25
After Five through Ten Years	40
Over Ten Years	32,514
Amortized Cost	32,581		$ 37,468
Other Equity Securities	0
Amortized Cost	32,581		37,468
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	2
One through Five Years	26
After Five through Ten Years	41
Over Ten Years	31,165
Fair Value	31,234		36,935
Other Equity Securities	0
Fair Value	31,234		36,935
Cost of available-for-sale securities sold	3,500
Proceeds from sale of securities available-for-sale	3,555	$ 0
Gain on sale of securities	94	$ 0
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	27,266
Amortized Cost	27,266
Other Equity Securities	2,834
Amortized Cost	30,100		28,357
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	26,100
Fair Value	26,100
Other Equity Securities	2,834
Fair Value	$ 28,934		$ 27,989

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Securities, Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	$ 0	$ 144
Over Twelve Months	1,352	653
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	0	10,278
Over Twelve Months	31,119	21,719
Public Deposits [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	230,903
FHLB Advances [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	155,000
Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	144
Over Twelve Months	1,352	653
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	0	10,278
Over Twelve Months	31,119	21,719
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

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Loans Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017	Jun. 30, 2016
Loan receivable [Abstract]
Gross Loans Receivable	$ 318,162	$ 316,697	$ 309,282
Less: Allowance for Loan Losses	(3,693)	(3,729)	(3,582)	$ (2,845)
Unamortized Loan Fees	(302)	(196)
Net Loans Receivable	314,167	312,772
Loans Secured by Mortgages on Real Estate [Member]
Loan receivable [Abstract]
Gross Loans Receivable	283,734	281,785
Loans Secured by Mortgages on Real Estate [Member] | One-to-Four-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	123,555	125,306
Loans Secured by Mortgages on Real Estate [Member] | Commercial [Member]
Loan receivable [Abstract]
Gross Loans Receivable	75,029	77,945	73,948
Less: Allowance for Loan Losses	(499)	(353)	(338)	(321)
Loans Secured by Mortgages on Real Estate [Member] | Multi-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	34,092	21,281	19,050
Less: Allowance for Loan Losses	(172)	(73)	(80)	(111)
Loans Secured by Mortgages on Real Estate [Member] | Land [Member]
Loan receivable [Abstract]
Gross Loans Receivable	19,690	25,038	24,399
Less: Allowance for Loan Losses	(155)	(203)	(199)	(201)
Loans Secured by Mortgages on Real Estate [Member] | Construction [Member]
Loan receivable [Abstract]
Gross Loans Receivable	10,264	9,529	13,821
Less: Allowance for Loan Losses	(214)	(147)	(157)	(126)
Loans Secured by Mortgages on Real Estate [Member] | Equity and Second Mortgage [Member]
Loan receivable [Abstract]
Gross Loans Receivable	1,566	1,710
Loans Secured by Mortgages on Real Estate [Member] | Equity Lines of Credit [Member]
Loan receivable [Abstract]
Gross Loans Receivable	19,538	20,976
Commercial Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	33,810	34,429	35,540
Less: Allowance for Loan Losses	(1,363)	(979)	(929)	(444)
Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	618	483	442
Less: Allowance for Loan Losses	(3)	(10)	$ 0	$ (8)
Consumer Loans [Member] | Loans on Savings Accounts [Member]
Loan receivable [Abstract]
Gross Loans Receivable	429	420
Consumer Loans [Member] | Other Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	$ 189	$ 63

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Loans Receivable, Analysis of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Summary of changes in the allowance for loan losses [Roll Forward]
Beginning Balances			$ 3,729	$ 2,845	$ 2,845
Provision for Loan Losses	$ 350	$ 155	850	755	900
Loan Charge-Offs			(911)	(30)	(30)
Recoveries			25	12	14
Ending Balances	$ 3,693	$ 3,582	$ 3,693	$ 3,582	$ 3,729

XML

Loans Receivable, Credit Quality Indicators (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 318,162	$ 316,697	$ 309,282
Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	310,462	312,663
Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	167	723
Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	7,533	3,311
Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	283,734	281,785
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	123,555	125,306
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	122,300	124,450
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	108	303
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	1,147	553
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	75,029	77,945	73,948
Real Estate Loans [Member] | Commercial [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	70,817	77,690
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	4,212	255
Real Estate Loans [Member] | Commercial [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	34,092	21,281	19,050
Real Estate Loans [Member] | Multi-Family Residential [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	34,092	21,281
Real Estate Loans [Member] | Multi-Family Residential [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Land [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,690	25,038	24,399
Real Estate Loans [Member] | Land [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,690	24,915
Real Estate Loans [Member] | Land [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	123
Real Estate Loans [Member] | Land [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Land [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	10,264	9,529	13,821
Real Estate Loans [Member] | Construction [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	10,264	9,232
Real Estate Loans [Member] | Construction [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	297
Real Estate Loans [Member] | Construction [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Construction [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	1,566	1,710
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	1,394	1,710
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	59	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	113	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,538	20,976
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	19,538	20,976
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Commercial Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	33,810	34,429	35,540
Commercial Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	31,749	31,926
Commercial Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Commercial Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	2,061	2,503
Commercial Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Consumer Loans [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	618	483	$ 442
Consumer Loans [Member] | Pass [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	618	483
Consumer Loans [Member] | Special Mention [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Consumer Loans [Member] | Substandard [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	0	0
Consumer Loans [Member] | Doubtful [Member]
Financing Receivable, Recorded Investment [Line Items]
Gross loans receivable	$ 0	$ 0

XML

Loans Receivable, Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017	Mar. 31, 2017
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	$ 6,740	$ 5,371
Current	311,422	311,326
Total Loans Receivable	318,162	316,697	$ 309,282
Recorded Investment > 90 Days and Accruing	256	185
Loan receivables on nonaccrual status	0	0
Interest income recognized on non-accrual loans	0	0
Estimated gross interest income that would have been recorded if non-accrual loans had been accruing interest at their original contracted rates	78	79
30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	3,404	1,852
60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	487	350
Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	2,849	3,169
Real Estate Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans Receivable	283,734	281,785
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	4,557	2,662
Current	118,998	122,644
Total Loans Receivable	123,555	125,306
Recorded Investment > 90 Days and Accruing	86	181
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	3,112	1,650
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	390	350
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,055	662
Real Estate Loans [Member] | Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	8
Current	75,029	77,937
Total Loans Receivable	75,029	77,945	73,948
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Commercial [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	8
Real Estate Loans [Member] | Commercial [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Commercial [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	34,092	21,281
Total Loans Receivable	34,092	21,281	19,050
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Land [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	19,690	25,038
Total Loans Receivable	19,690	25,038	24,399
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Land [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Land [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Land [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	10,264	9,529
Total Loans Receivable	10,264	9,529	13,821
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Construction [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Construction [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	87	0
Current	1,479	1,710
Total Loans Receivable	1,566	1,710
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	87	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	492	198
Current	19,046	20,778
Total Loans Receivable	19,538	20,976
Recorded Investment > 90 Days and Accruing	170	4
Real Estate Loans [Member] | Equity Lines of Credit [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	205	194
Real Estate Loans [Member] | Equity Lines of Credit [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	97	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	190	4
Commercial Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,604	2,503
Current	32,206	31,926
Total Loans Receivable	33,810	34,429	35,540
Recorded Investment > 90 Days and Accruing	0	0
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Commercial Loans [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,604	2,503
Consumer Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	618	483
Total Loans Receivable	618	483	$ 442
Recorded Investment > 90 Days and Accruing	0	0
Consumer Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Consumer Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Consumer Loans [Member] | Greater Than 90 Days [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	$ 0	$ 0

XML

Loans Receivable, Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017	Jun. 30, 2017
Allowance for loan losses [Roll Forward]
Beginning Balances			$ 3,729	$ 2,845	$ 2,845
Charge-Offs			(911)	(30)	(30)
Recoveries			25	12	14
Current Provision	$ 350	$ 155	850	755	900
Ending Balances	3,693	3,582	3,693	3,582	3,729
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	3,693	3,582	3,693	3,582	3,729
Loans Receivable [Abstract]
Ending Balances - Total	318,162	309,282	318,162	309,282	316,697
Evaluated for Impairment, Ending Balances [Abstract]
Individually	7,700	3,998	7,700	3,998	4,044
Collectively	310,462	305,284	310,462	305,284	312,653
Real Estate Loans [Member]
Loans Receivable [Abstract]
Ending Balances - Total	283,734		283,734		281,785
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			1,822	1,517	1,517
Charge-Offs			0	0	0
Recoveries			5	12	14
Current Provision			(735)	212	291
Ending Balances	1,092	1,741	1,092	1,741	1,822
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	1,092	1,741	1,092	1,741	1,822
Loans Receivable [Abstract]
Ending Balances - Total	123,555	120,446	123,555	120,446	125,306
Evaluated for Impairment, Ending Balances [Abstract]
Individually	1,255	803	1,255	803	856
Collectively	122,300	119,643	122,300	119,643	124,450
Real Estate Loans [Member] | Commercial [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			353	321	321
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			146	17	32
Ending Balances	499	338	499	338	353
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	499	338	499	338	353
Loans Receivable [Abstract]
Ending Balances - Total	75,029	73,948	75,029	73,948	77,945
Evaluated for Impairment, Ending Balances [Abstract]
Individually	4,212	261	4,212	261	255
Collectively	70,817	73,687	70,817	73,687	77,690
Real Estate Loans [Member] | Multi Family [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			73	111	111
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			99	(31)	(38)
Ending Balances	172	80	172	80	73
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	172	80	172	80	73
Loans Receivable [Abstract]
Ending Balances - Total	34,092	19,050	34,092	19,050	21,281
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	34,092	19,050	34,092	19,050	21,281
Real Estate Loans [Member] | Land [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			203	201	201
Charge-Offs			(109)	(16)	(16)
Recoveries			20	0	0
Current Provision			41	14	18
Ending Balances	155	199	155	199	203
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	155	199	155	199	203
Loans Receivable [Abstract]
Ending Balances - Total	19,690	24,399	19,690	24,399	25,038
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	123	0	123	123
Collectively	19,690	24,276	19,690	24,276	24,915
Real Estate Loans [Member] | Construction [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			147	126	126
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			67	31	21
Ending Balances	214	157	214	157	147
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	214	157	214	157	147
Loans Receivable [Abstract]
Ending Balances - Total	10,264	13,821	10,264	13,821	9,529
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	298	0	298	297
Collectively	10,264	13,523	10,264	13,523	9,232
Real Estate Loans [Member] | Home Equity Loans And Lines of Credit [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			142	117	117
Charge-Offs			(5)	(14)	(14)
Recoveries			0	0	0
Current Provision			58	35	39
Ending Balances	195	138	195	138	142
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	195	138	195	138	142
Loans Receivable [Abstract]
Ending Balances - Total	21,104	21,636	21,104	21,636	22,686
Evaluated for Impairment, Ending Balances [Abstract]
Individually	172	0	172	0	0
Collectively	20,932	21,636	20,932	21,636	22,686
Commercial Loans [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			979	444	444
Charge-Offs			(797)	0	0
Recoveries			0	0	0
Current Provision			1,181	485	535
Ending Balances	1,363	929	1,363	929	979
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	1,363	929	1,363	929	979
Loans Receivable [Abstract]
Ending Balances - Total	33,810	35,540	33,810	35,540	34,429
Evaluated for Impairment, Ending Balances [Abstract]
Individually	2,061	2,513	2,061	2,513	2,513
Collectively	31,749	33,027	31,749	33,027	31,916
Consumer Loans [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			10	8	8
Charge-Offs			0	0	0
Recoveries			0	0	0
Current Provision			(7)	(8)	2
Ending Balances	3	0	3	0	10
Evaluated for Impairment [Abstract]
Individually	0	0	0	0	0
Collectively	3	0	3	0	10
Loans Receivable [Abstract]
Ending Balances - Total	618	442	618	442	483
Evaluated for Impairment, Ending Balances [Abstract]
Individually	0	0	0	0	0
Collectively	$ 618	$ 442	$ 618	$ 442	$ 483

XML

Loans Receivable, Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	$ 7,700	$ 4,044
Recorded Investment With No Allowance	7,700	4,044
Recorded Investment With Allowance	0	0
Total Recorded Investment	7,700	4,044
Related Allowance	0	0
Average Recorded Investment	7,641	4,195
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	1,255	856
Recorded Investment With No Allowance	1,255	856
Recorded Investment With Allowance	0	0
Total Recorded Investment	1,255	856
Related Allowance	0	0
Average Recorded Investment	1,146	861
Real Estate Loans [Member] | Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	4,212	255
Recorded Investment With No Allowance	4,212	255
Recorded Investment With Allowance	0	0
Total Recorded Investment	4,212	255
Related Allowance	0	0
Average Recorded Investment	4,205	261
Real Estate Loans [Member] | 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
Real Estate Loans [Member] | Land [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	123
Recorded Investment With No Allowance	0	123
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	123
Related Allowance	0	0
Average Recorded Investment	0	125
Real Estate Loans [Member] | Construction [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	297
Recorded Investment With No Allowance	0	297
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	297
Related Allowance	0	0
Average Recorded Investment	0	299
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	172	0
Recorded Investment With No Allowance	172	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	172	0
Related Allowance	0	0
Average Recorded Investment	188	0
Real Estate Loans [Member] | Equity Lines of Credit [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
Commercial Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	2,061	2,513
Recorded Investment With No Allowance	2,061	2,513
Recorded Investment With Allowance	0	0
Total Recorded Investment	2,061	2,513
Related Allowance	0	0
Average Recorded Investment	2,102	2,649
Consumer Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	$ 0	$ 0

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Loans Receivable, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	9 Months Ended	12 Months Ended
	Mar. 31, 2018 USD ($) Contract	Mar. 31, 2018 USD ($) Contract Borrower	Jun. 30, 2017 USD ($) Contract Borrower
Financing Receivable, Modifications [Line Items]
Commitments to loan additional funds to borrowers whose loans were previously in non-accrual status	$ 0	$ 0	$ 0
Commercial Business Loans [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs	6,349	6,349	1,717
Commercial Business Loans [Member] | Nonaccrual [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs	$ 1,604	1,604	1,717
Commercial Business Loans [Member] | Current [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | Contract	5
Total TDRs	$ 4,745	4,745	0
Commercial Business Loans [Member] | Past Due Greater than 30 Days [Member]
Financing Receivable, Modifications [Line Items]
Total TDRs	1,604	$ 1,604	$ 1,717
Commercial Business Loans [Member] | Commercial Borrower [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts | Contract		9	9
Number of borrowers involved in troubled debt restructuring | Borrower		1	1
Total TDRs	$ 1,600	$ 1,600	$ 1,600

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Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Summary of Deposits [Abstract]
Non-Interest Bearing	$ 53,194	$ 54,420
NOW Accounts	32,811	34,500
Money Markets	61,685	42,439
Passbook Savings	36,257	35,050
Deposits in transaction accounts	183,947	166,409
Certificates of Deposit	163,247	162,636
Total Deposits	$ 347,194	$ 329,045

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Mar. 31, 2018	Mar. 31, 2017
Calculation of earnings per share [Abstract]
Net income	$ 1,021	$ 852	$ 2,391	$ 2,617
Weighted average shares outstanding - basic (in shares)	1,793,000	1,819,000	1,804,000	1,814,000
Effect of dilutive common stock equivalents (in shares)	102,000	109,000	100,000	88,000
Adjusted weighted average shares outstanding- diluted (in shares)	1,895,000	1,928,000	1,904,000	1,902,000
Basic earnings per share (in dollars per share)	$ 0.57	$ 0.47	$ 1.33	$ 1.44
Diluted earnings per share (in dollars per share)	$ 0.54	$ 0.44	$ 1.26	$ 1.38
Outstanding options to purchase shares (in shares)	296,551	301,334	296,551	302,517
Weighted average price per share of outstanding options (in dollars per share)	$ 17.88	$ 17.82	$ 17.88	$ 17.81
Components of average outstanding common shares [Abstract]
Average common shares issued (in shares)	3,062,000	3,062,000	3,062,000	3,062,000
Average unearned ESOP shares (in shares)	(114,000)	(125,000)	(116,000)	(129,000)
Average unearned RRP shares (in shares)	(3,000)	(10,000)	(3,000)	(16,000)
Average Company stock purchased (in shares)	(1,152,000)	(1,108,000)	(1,139,000)	(1,103,000)
Weighted average shares outstanding (in shares)	1,793,000	1,819,000	1,804,000	1,814,000
Stock Option [Member]
Calculation of earnings per share [Abstract]
Effect of dilutive common stock equivalents (in shares)	102,413	109,145

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Stock-Based Compensation, Recognition and Retention Plan (Details) - USD ($) $ / shares in Units, $ in Thousands	9 Months Ended
	Mar. 31, 2018	Mar. 31, 2017	Jul. 31, 2014	Jan. 31, 2012
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
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	20.00%
Period of plan	5 years
Share price (in dollars per share)			$ 18.92	$ 14.70
Award vesting period	5 years
Compensation expense	$ 21	$ 140

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Stock-Based Compensation, Stock Option Plan (Details) - USD ($) $ / shares in Units, $ in Thousands				9 Months Ended
	Jul. 31, 2014	Jan. 31, 2012	Aug. 19, 2010	Mar. 31, 2018	Mar. 31, 2017	Dec. 23, 2011	Aug. 10, 2005
Stock Option [Member]
Weighted Average Exercise Price [Abstract]
Expected Term				10 years
Incentive stock options and non-qualified stock options, vested and exercisable				20.00%
Award vesting period				5 years
Commencement period of incentive and non-qualified options				1 year
Additional percentage vested on each successive anniversary				20.00%
Compensation expense				$ 101	$ 101
2005 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock reserved for issuance (in shares)							158,868
Termination date				Jun. 08, 2015
Term of share-based payment award				10 years
Number of Shares [Abstract]
Granted (in shares)	2,133		21,616
Weighted Average Exercise Price [Abstract]
Exercised (in dollars per share)	$ 18.92		$ 10.93
2011 Stock Option Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock reserved for issuance (in shares)				389		194,522
Number of Shares [Abstract]
Granted (in shares)	29,178	165,344
Weighted Average Exercise Price [Abstract]
Exercised (in dollars per share)	$ 18.92	$ 14.70

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Stock-Based Compensation, Stock Incentive Plan (Details) - USD ($) $ in Thousands			9 Months Ended
	Oct. 26, 2015	Nov. 12, 2014	Mar. 31, 2018	Mar. 31, 2017
Stock Option [Member]
Number of Shares [Abstract]
Award vesting period			5 years
Compensation expense			$ 101	$ 101
2014 Stock Incentive Plan [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized under plan (in shares)		150,000
Percentage of shares available for grant		25.00%
Aggregate number of shares of common stock reserved for issuance (in shares)		112,500
Number of Shares [Abstract]
Granted (in shares)	34,500
Compensation expense			$ 102	$ 197
2014 Stock Incentive Plan [Member] | Maximum [Member]
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Aggregate number of shares of common stock (in shares)		37,500
2014 Stock Incentive Plan [Member] | Stock Option [Member]
Number of Shares [Abstract]
Granted (in shares)	103,500
Award vesting period			5 years

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Related Party Transactions (Details) - USD ($) $ in Millions	Mar. 31, 2018	Jun. 30, 2017
Related Party Transactions [Abstract]
Loan made to directors and executive officers	$ 2.6	$ 2.8

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Fair Value Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2018	Jun. 30, 2017
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	$ 31,234	$ 36,935
Securities to be Held-to-Maturity	28,934	27,989
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	8,441	11,905
Securities Available-for-Sale	31,234	36,935
Securities to be Held-to-Maturity	30,100	28,357
Loans Held-for-Sale	5,389	13,631
Loans Receivable	314,167	312,772
Financial Liabilities [Abstract]
Deposits	347,194	329,045
Advances from FHLB	16,706	48,907
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	8,441	11,905
Securities Available-for-Sale	31,234	36,935
Securities to be Held-to-Maturity	28,934	27,989
Loans Held-for-Sale	5,389	13,631
Loans Receivable	310,038	301,741
Financial Liabilities [Abstract]
Deposits	333,167	313,514
Advances from FHLB	16,575	48,918
Mortgage Loan Commitments [Member] | Carrying Value [Member]
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	5,152	457
Mortgage Loan Commitments [Member] | Estimated Fair Value [Member]
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 5,152	$ 457

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Fair Value Disclosures, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2018	Jun. 30, 2017
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	$ 31,234	$ 36,935
FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	7,445	8,848
FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	12,838	19,957
GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	10,951	8,130
Recurring [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	31,234	36,935
Recurring [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	7,445	8,848
Recurring [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	12,838	19,957
Recurring [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	10,951	8,130
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Quoted Prices in Active Markets for Identical Assets (Level 1) [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	31,234	36,935
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	7,445	8,848
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	12,838	19,957
Recurring [Member] | Significant Other Observable Inputs (Level 2) [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	10,951	8,130
Recurring [Member] | Unobservable Inputs (Level 3) [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Unobservable Inputs (Level 3) [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Unobservable Inputs (Level 3) [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	0	0
Recurring [Member] | Unobservable Inputs (Level 3) [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	$ 0	$ 0