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:	December 31, 2019
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)

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock (par value $.01 per share)	HFBL	Nasdaq Stock Market, LLC

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 every Interactive Data File required to be submitted 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 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.

Large accelerated filer	[  ]	Accelerated filer	[  ]
Non-accelerated filer	[X]	Smaller reporting company	[X]
		Emerging growth company	[  ]

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.  [  ]

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[  ]  Yes
[X]   No

Shares of common stock, par value $.01 per share, outstanding as of February 13, 2020: The registrant had 1,783,634 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	6
	Notes to Consolidated Financial Statements	8
Item 2:	Management's Discussion and Analysis of Financial Condition and Results of Operations	29
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	36
Item 4:	Controls and Procedures	37
PART II	OTHER INFORMATION
Item 1:	Legal Proceedings	37
Item 1A:	Risk Factors	37
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	38
Item 3:	Defaults Upon Senior Securities	38
Item 4:	Mine Safety Disclosures	38
Item 5:	Other Information	38
Item 6:	Exhibits	38
SIGNATURES

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

	December 31, 2019			June 30, 2019
	(In Thousands)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $11,180 and $10,632 for  December 31, 2019 and June 30, 2019, Respectively)	$	14,896		$	18,108
Securities Available-for-Sale		57,013			41,655
Securities Held-to-Maturity (Fair Value of $22,682 and $25,532, Respectively)		22,428			25,349
Loans Held-for-Sale		13,793			8,608
Loans Receivable, Net of Allowance for Loan Losses of $3,497 and $3,452, Respectively		323,568			324,134
Accrued Interest Receivable		1,110			1,172
Premises and Equipment, Net		13,249			13,554
Bank Owned Life Insurance		7,019			6,948
Deferred Tax Asset		894			849
Foreclosed Assets		480			1,366
Other Assets		845			710
Total Assets	$	455,295		$	442,453
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits	$	401,365		$	388,164
Advances from Borrowers for Taxes and Insurance		272			584
Short-term Federal Home Loan Bank Advances		302			295
Long-term Federal Home Loan Bank Advances		907			1,060
Other Borrowings		1,200			450
Other Accrued Expenses and Liabilities		1,275			1,558
Total Liabilities		405,321			392,111
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; 1,792,763, and 1,845,482 Shares Issued and        Outstanding at December 31, 2019 and June 30, 2019, Respectively		23			23
Additional Paid-in Capital		36,327			35,914
Unearned ESOP Stock		(927	)		(985	)
Retained Earnings		14,621			15,370
Accumulated Other Comprehensive (Loss) Income		(70	)		20
Total Stockholders’ Equity		49,974			50,342
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	455,295		$	442,453

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 December 31,					For the Six Months Ended December 31,
	2019		2018			2019		2018
	(In Thousands, Except per Share Data)
INTEREST INCOME
Loans, Including Fees	$	4,632	$	4,569		$	9,284	$	9,063
Investment Securities		15		15			31		29
Mortgage-Backed Securities		427		318			817		616
Other Interest-Earning Assets		88		94			198		174
Total Interest Income		5,162		4,996			10,330		9,882
INTEREST EXPENSE
Deposits		1,360		1,030			2,695		1,959
Other Borrowings		13		3			17		4
Federal Home Loan Bank Borrowings		14		42			30		110
Total Interest Expense		1,387		1,075			2,742		2,073
Net Interest Income		3,775		3,921			7,588		7,809
PROVISION FOR LOAN LOSSES		950		100			1,125		350
Net Interest Income after Provision for Loan Losses		2,825		3,821			6,463		7,459
NON-INTEREST INCOME
Gain on Sale of Loans		580		374			1,147		766
Gain (Loss) on Sale of Real Estate and Fixed Assets		--		(230	)		80		(228	)
Income on Bank Owned Life Insurance		35		35			71		70
Service Charges on Deposit Accounts		291		238			564		465
Other Income		11		22			20		35
Total Non-Interest Income		917		439			1,882		1,108
NON-INTEREST EXPENSE
Compensation and Benefits		1,890		1,547			3,696		3,163
Occupancy and Equipment		356		329			728		649
Data Processing		131		147			291		297
Audit and Examination Fees		57		73			114		127
Franchise and Bank Shares Tax		122		97			237		197
Advertising		65		84			212		142
Legal Fees		153		158			262		297
Loan and Collection		50		64			169		126
Deposit Insurance Premium		--		22			--		52
Valuation Adjustment Real Estate Owned		--		--			--		75
Other Expense		183		201			375		372
Total Non-Interest Expense		3,007		2,722			6,084		5,497
Income Before Income Taxes		735		1,538			2,261		3,070
PROVISION FOR INCOME TAX EXPENSE		147		363			426		677
Net Income	$	588	$	1,175		$	1,835	$	2,393
EARNINGS PER COMMON SHARE:
Basic	$	0.35	$	0.66		$	1.07	$	1.34
Diluted	$	0.32	$	0.62		$	1.00	$	1.25
DIVIDENDS DECLARED	$	0.16	$	0.14		$	0.32	$	0.28

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 December 31,					For the Six Months Ended December 31,
	2019			2018		2019			2018
	(In Thousands)					(In Thousands)
Net Income	$	588		$	1,175	$	1,835		$	2,393
Other Comprehensive (Loss) Income, Net of Tax
Unrealized Holding Gain (Loss)on Securities Available-for-Sale,      Net of Tax of $41 and $24 in 2019 and $63 and $43 in 2018		(156	)		238		(90	)		163
Total Comprehensive Income	$	432		$	1,413	$	1,745		$	2,556

See accompanying notes to unaudited consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

THREE MONTHS ENDED DECEMBER 31, 2019 AND 2018

(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 – September 30, 2018	$	23	$	35,246	$	(1,071	)	$	2	$	14,880		$	(1,121	)	$	47,959
Net Income		--		--		--			--		1,175			--			1,175
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--		--			238			238
Share Awards Earned		--		135		--			--		--			--			135
RRP Shares Earned		--		--		--			--		--			--			--
Stock Options Vested		--		34		--			--		--			--			34
Common Stock Issuance for Stock     Option Exercises		--		108		--			--		--			--			108
ESOP Compensation Earned		--		63		29			--		--			--			92
Company Stock Purchased		--		--		--			--		(839	)		--			(839	)
Dividends Declared		--		--		--			--		(264	)		--			(264	)
BALANCE – December 31, 2018	$	23	$	35,586	$	(1,042	)	$	2	$	14,952		$	(883	)	$	48,638
BALANCE – September 30, 2019	$	23	$	36,043	$	(956	)	$	--	$	14,541		$	86		$	49,737
Net Income		--		--		--			--		588			--			588
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--		--			(156	)		(156	)
Share Awards Earned		--		134		--			--		--			--			134
RRP Shares Earned		--		--		--			--		--			--			--
Stock Options Vested		--		34		--			--		--			--			34
Common Stock Issuance for Stock     Option Exercises		--		46		--			--		--			--			46
ESOP Compensation Earned		--		70		29			--		--			--			99
Company Stock Purchased		--		--		--			--		(222	)		--			(222	)
Dividends Declared		--		--		--			--		(286	)		--			(286	)
BALANCE – December 31, 2019	$	23	$	36,327	$	(927	)	$	--	$	14,621		$	(70	)	$	49,974

See accompanying notes to unaudited consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

SIX MONTHS ENDED DECEMBER 31, 2019 AND 2018

(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, 2018	$	23	$	35,057	$	(1,100	)	$	(22	)	$	14,125		$	(1,046	)	$	47,037
Net Income		--		--		--			--			2,393			--			2,393
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			163			163
Share Awards Earned		--		135		--			--			--			--			135
RRP Shares Earned		--		--		--			24			--			--			24
Stock Options Vested		--		68		--			--			--			--			68
Common Stock Issuance for Stock     Option Exercises		--		198		--			--			--			--			198
ESOP Compensation Earned		--		128		58			--			--			--			186
Company Stock Purchased		--		--		--			--			(1,037	)		--			(1,037	)
Dividends Declared		--		--		--			--			(529	)		--			(529	)
BALANCE – December 31, 2018	$	23	$	35,586	$	(1,042	)	$	2		$	14,952		$	(883	)	$	48,638
BALANCE – June 30, 2019	$	23	$	35,914	$	(985	)	$	--		$	15,370		$	20		$	50,342
Net Income		--		--		--			--			1,835			--			1,835
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--		--			--			--			(90	)		(90	)
Share Awards Earned		--		134		--			--			--			--			134
RRP Shares Earned		--		24		--			--			--			--			24
Stock Options Vested		--		69		--			--			--			--			69
Common Stock Issuance for Stock     Option Exercises		--		50		--			--			--			--			50
ESOP Compensation Earned		--		136		58			--			--			--			194
Company Stock Purchased		--		--		--			--			(2,005	)		--			(2,005	)
Dividends Declared		--		--		--			--			(579	)		--			(579	)
BALANCE – December 31, 2019	$	23	$	36,327	$	(927	)	$	--		$	14,621		$	(70	)	$	49,974

See accompanying notes to unaudited consolidated financial statements.

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Six Months Ended
	December 31,
	2019			2018
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,835		$	2,393
Adjustments to Reconcile Net Income to Net
Cash (Used in) Provided by Operating Activities
Bad Debt Recovery		5			1
Federal Home Loan Bank stock certificate		31			29
Net Amortization and Accretion on Securities		51			57
(Gain) Loss on Sale of Real Estate		(80	)		228
Gain on Sale of Loans		(1,147	)		(766	)
Amortization of Deferred Loan Fees		(76	)		(97	)
Depreciation of Premises and Equipment		323			241
ESOP Expense		194			186
Stock Option Expense		69			68
Recognition and Retention Plan Expense		2			14
Deferred Income Tax		(45	)		(26	)
Valuation Adjustment Real Estate Owned		--			75
Provision for Loan Losses		1,125			350
Increase in Cash Surrender Value on Bank Owned Life Insurance		(71	)		(70	)
Share Awards Expense		74			68
Changes in Assets and Liabilities:
Loans Held-for-Sale – Originations and Purchases		(50,982	)		(28,395	)
Loans Held-for-Sale – Sale and Principal Repayments		46,944			32,065
Accrued Interest Receivable		62			(18	)
Other Operating Assets		(135	)		253
Other Operating Liabilities		(283	)		(442	)
Net Cash (Used in) Provided by Operating Activities		(2,104	)		6,214
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		121			(4,675	)
Deferred Loan Fees Collected		107			85
Acquisition of Premises and Equipment		(653	)		(1,923	)
Proceeds from Sale of Real Estate		796			536
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities		5,735			3,369
Purchases of Securities		(21,250	)		(12,522	)
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities		2,943			2,396
Purchase of Securities		--			--
Net Cash Used in Investing Activities		(12,201	)		(12,734	)

See accompanying notes to unaudited consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
	Six Months Ended
	December 31,
	2019			2018
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits	$	13,201		$	13,147
Repayments of Advances from Federal Home Loan Bank		(146	)		(10,140	)
Repayments of Other Borrowings		(450	)		(300	)
Net Decrease in Advances from Borrowers for Taxes and Insurance		(312	)		(397	)
Dividends Paid		(579	)		(529	)
Company Stock Purchased		(2,005	)		(1,037	)
Proceeds from Stock Options Exercised		50			198
Proceeds from Other Bank Borrowings		1,200			450
Plan Share Distributions		134			135
Net Cash Provided byFinancing Activities		11,093			1,527
NET DECREASE IN CASH AND CASH EQUIVALENTS		(3,212	)		(4,993	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		18,108			15,867
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	14,896		$	10,874
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	1,887		$	1,403
Income Taxes Paid		580			787
Market Value Adjustment for Gain (Loss) on Securities Available-for-Sale		(115	)		206

See accompanying notes to unaudited consolidated financial statements.

7

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 six month period ended December 31, 2019 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2020.

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 December 31, 2019.  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 seven 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 December 31, 2019, 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.

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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.

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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)

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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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 basis 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 $212,000 and $142,000 for the six months ended December 31, 2019 and 2018, 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 six months ended December 31, 2019 and 2018, 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, plan share awards 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, plan share awards 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, plan share awards or recognition and retention awards.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

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 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.  In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities.  The amendments in this Update include items brought to the FASB Board’s attention regarding ASU 2016-01.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 1.Summary of Significant 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 did not 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 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 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 extent of the impact upon adoption is not known and will depend on the characteristics of the Company’s loan portfolio and economic conditions on that date as well as forecasted conditions thereafter.

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 adoption of this guidance is not expected to have a material effect on the Company’s 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 adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements

In November 2017, the FASB issued ASU 2017-14, Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) (SEC Update).  This Update adds, amends, and supersedes SEC paragraphs of the ASC pursuant to Staff Accounting Bulletin No. 116 and SEC Release 33-10403.  This ASU was effective upon issuance.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

Note 1.Summary of Significant Accounting Policies (Continued)

Recent Accounting Pronouncements (Continued)

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220):  Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  On December 22, 2017, the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.  Consequently, the amendments in this Update eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financials statement users.  However, because the amendments in this Update only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected.  The amendments in this Update are affective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption of this Update is permitted, including adoption in any interim period (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance.  The amendments in this Update should be applied either in the period of adoption or 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 is recognized.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In May 2018, the FASB issued ASU 2018-06, Codification Improvements to Topic 942, Financial Services – Depository and Lending.  The amendments in this Update supersede the guidance in Subtopic 942-740, Financial Services – Depository and Lending – Income Taxes, that is related to Circular 202 because that guidance has been rescinded by the Office of the Comptroller of the Currency (OCC) and is no longer relevant.  This ASU was effective upon issuance.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718):  Improvements to Nonemployee Share-Based Payment Accounting.  Topic 718 improves several areas of nonemployee share-based payment accounting.  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.  Early adoption is permitted, but no earlier than an entity’s adoption on Topic 606.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.”  The ASU removes, modifies, and adds certain disclosure requirements for fair value measurements.  ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019.  In addition, entities may early adopt the modified or eliminated disclosure requirements and delay adoption of the additional disclosure requirements until effective date.  The Company is currently assessing the impact of adoption of this guidance upon its disclosures.  ASU No. 2018-13 will not impact our consolidated financial statements, as the update only revises disclosure requirements.

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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:

	December 31, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	7,117	$	34	$	107	$	7,044
FNMA Mortgage-Backed Certificates		42,958		336		285		43,009
GNMA Mortgage-Backed Certificates		7,027		24		91		6,960
Total Debt Securities		57,102		394		483		57,013
Total Securities Available-for-Sale	$	57,102	$	394	$	483	$	57,013
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,121	$	--	$	17	$	1,104
FNMA Mortgage-Backed Certificates		18,369		358		87		18,640
Total Debt Securities		19,490		358		104		19,744
Equity Securities (Non-Marketable)
26,879Shares – Federal Home Loan Bank		2,688		--		--		2,688
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,938		--		--		2,938
Total Securities Held-to-Maturity	$	22,428	$	358	$	104	$	22,682

	June 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	8,168	$	43	$	131	$	8,080
FNMA Mortgage-Backed Certificates		25,071		355		149		25,277
GNMA Mortgage-Backed Certificates		8,390		19		111		8,298
Total Debt Securities		41,629		417		391		41,655
Total Securities Available-for-Sale	$	41,629	$	417	$	391	$	41,655
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,134	$	--	$	18	$	1,116
FNMA Mortgage-Backed Certificates		21,308		338		137		21,509
Total Debt Securities		22,442		338		155		22,625
Equity Securities (Non-Marketable)
26,571Shares – Federal Home Loan Bank		2,657		--		--		2,657
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,907		--		--		2,907
Total Securities Held-to-Maturity	$	25,349	$	338	$	155	$	25,532

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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 December 31, 2019 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	29	$	30	$	--	$	--
One through Five Years		20,272		20,343		--		--
After Five through Ten Years		32,314		32,020		--		--
Over Ten Years		4,487		4,620		19,490		19,744
		57,102		57,013		19,490		19,744
Other Equity Securities		--		--		2,938		2,938
Total	$	57,102	$	57,013	$	22,428	$	22,682

Securities available-for-sale totaling $21.3 million were purchased during the six months ending December 31, 2019.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at December 31, 2019 and June 30, 2019 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	December 31, 2019
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Mortgage-Backed Securities	$	178	$	14,048	$	305	$	14,553
Total Securities Available-for-Sale	$	178	$	14,048	$	305	$	14,553

	June 30, 2019
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Mortgage-Backed Securities	$	--	$	--	$	391	$	19,149
Total Securities Available-for-Sale	$	--	$	--	$	391	$	19,149

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.Securities (continued)

The unrealized losses on the Company’s investment in mortgage-backed securities at December 31, 2019 and June 30, 2019 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 December 31, 2019.

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 December 31, 2019 and June 30, 2019, securities with a carrying value of $1.9 million and $2.3 million, respectively, were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $161.4 million and $152.2 million, respectively, were pledged to secure FHLB advances.

3.Loans Receivable

Loans receivable are summarized as follows:

	December 31, 2019			June 30, 2019
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	115,081		$	118,945
Commercial		87,939			83,397
Multi-Family Residential		42,427			46,171
Land		17,384			16,106
Construction		12,936			9,502
Equity and Second Mortgage		1,294			1,262
Equity Lines of Credit		14,172			15,619
Total Mortgage Loans		291,233			291,002
Commercial Loans		35,377			35,990
Consumer Loans
Loans on Savings Accounts		385			439
Other Consumer Loans		275			329
Total Consumer Loans		660			768
Total Loans		327,270			327,760
Less:   Allowance for Loan Losses		(3,497	)		(3,452	)
Unamortized Loan Fees		(205	)		(174	)
Net Loans Receivable	$	323,568		$	324,134

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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:

	Six Months Ended December 31,
	2019			2018
	(In Thousands)
Balance - Beginning of Period	$	3,452		$	3,425
Provision for Loan Losses		1,125			350
Loan Charge-Offs		(1,084	)		(297	)
Recoveries		4			1
Balance - End of Period	$	3,497		$	3,479

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 December 31, 2019 and June 30, 2019:

December 31, 2019	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	114,388	$	366	$	327	$	--	$	115,081
Commercial		84,854		--		3,085		--		87,939
Multi-Family Residential		42,427		--		--		--		42,427
Land		14,404		--		2,980		--		17,384
Construction		12,936		--		--		--		12,936
Equity and Second Mortgage		1,294		--		--		--		1,294
Equity Lines of Credit		14,172		--		--		--		14,172
Commercial Loans		34,871		--		506		--		35,377
Consumer Loans		660		--		--		--		660
Total	$	320,006	$	366	$	6,898	$	--	$	327,270

June 30, 2019	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	118,459	$	17	$	469	$	--	$	118,945
Commercial		80,087		--		3,310		--		83,397
Multi-Family Residential		46,171		--		--		--		46,171
Land		13,126		--		2,980		--		16,106
Construction		9,502		--		--		--		9,502
Equity and Second Mortgage		1,168		64		30		--		1,262
Equity Lines of Credit		15,619		--		--		--		15,619
Commercial Loans		35,367		--		623		--		35,990
Consumer Loans		768		--		--		--		768
Total	$	320,267	$	81	$	7,412	$	--	$	327,760

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 of December 31, 2019 and June 30, 2019:

December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment >90 days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,246	$	1,311	$	684	$	3,241	$	111,840	$	115,081	$	510
Commercial		--		--		--		--		87,939		87,939		--
Multi-Family Residential		--		--		--		--		42,427		42,427		--
Land		46		--		2,981		3,027		14,357		17,384		--
Construction		--		--		--		--		12,936		12,936		--
Equity and Second Mortgage		--		--		--		--		1,294		1,294		--
Equity Lines of Credit		19		208		--		227		13,945		14,172		--
Commercial Loans		--		--		49		49		35,328		35,377		49
Consumer Loans		--		--		--		--		660		660		--
Total	$	1,311	$	1,519	$	3,714	$	6,544	$	320,726	$	327,270	$	559

June 30, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,204	$	715	$	596	$	3,515	$	115,430	$	118,945	$	420
Commercial		--		--		--		--		83,397		83,397		--
Multi-Family Residential		--		--		--		--		46,171		46,171		--
Land		--		--		2,981		2,981		13,125		16,106		--
Construction		--		--		--		--		9,502		9,502		--
Equity and Second Mortgage		120		--		--		120		1,142		1,262		--
Equity Lines of Credit		--		49		--		49		15,570		15,619		--
Commercial Loans		--		--		215		215		35,775		35,990		49
Consumer Loans		--		--		--		--		768		768		--
Total	$	2,324	$	764	$	3,792	$	6,880	$	320,880	$	327,760	$	469

There was no interest income recognized on non-accrual loans during the six months ended December 31, 2019 or year ended June 30, 2019. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the six months ended December 31, 2019 and the year ended June 30, 2019 was approximately $341,000 and $274,000, 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 six months ended December 31, 2019 and year ended June 30, 2019 was as follows:

	Real Estate Loans
December 31, 2019	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	$	1,017		$	508	$	338		$	100	$	115	$	144		$	1,227		$	3	$	3,452
Charge-Offs		(39	)		--		--			--		--		--			(1,045	)		--		(1,084	)
Recoveries		--			--		--			--		--		4			--			--		4
Current Provision		7			67		(12	)		469		12		(17	)		599			--		1,125
Ending Balances	$	985		$	575	$	326		$	569	$	127	$	131		$	781		$	3	$	3,497
Evaluated for Impairment:
Individually		--			13		--			433		--		--			--			--		446
Collectively		985			562		326			136		127		131			781			3		3,051
Loans Receivable:
Ending Balances – Total	$	115,081		$	87,939	$	42,427		$	17,384	$	12,936	$	15,466		$	35,377		$	660	$	327,270
Ending Balances:
Evaluated for Impairment:
Individually		326			3,085		--			2,981		--		--			506			--		6,898
Collectively	$	114,755		$	84,854	$	42,427		$	14,403	$	12,936	$	15,466		$	34,871		$	660	$	320,372

	Real Estate Loans
June 30, 2019	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	$	1,166		$	436	$	256	$	161		$	163		$	311		$	929	$	3	$	3,425
Charge-Offs		(277	)		--		--		(289	)		--			(20	)		--		--		(586	)
Recoveries		--			--		--		--			--			13			--		--		13
Current Provision		128			72		82		228			(48	)		(160	)		298		--		600
Ending Balances	$	1,017		$	508	$	338	$	100		$	115		$	144		$	1,227	$	3	$	3,452
Evaluated for Impairment:
Individually		--			238		--		--			--			--			--		--		238
Collectively		1,017			270		338		100			115			144			1,227		3		3,214
Loans Receivable:
Ending Balances - Total	$	118,945		$	83,397	$	46,171	$	16,106		$	9,502		$	16,881		$	35,990	$	768	$	327,760
Ending Balances:
Evaluated for Impairment:
Individually		469			3,310		--		2,980			--			30			623		--		7,412
Collectively	$	118,476		$	80,087	$	46,171	$	13,126		$	9,502		$	16,851		$	35,367	$	768	$	320,348

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of December 31, 2019 and June 30, 2019:

December 31, 2019	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	$	326	$	326	$	--	$	326	$	--	$	328
Commercial		3,085		--		3,085		3,085		13		3,116
Multi-Family Residential		--		--		--		--		--		--
Land		2,981		--		2,981		2,981		433		2,981
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		506		506		--		506		--		506
Consumer Loans		--		--		--		--		--		--
Total	$	6,898	$	832	$	6,066	$	6,898	$	446	$	6,931

June 30, 2019	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	$	469	$	469	$	--	$	469	$	--	$	474
Commercial		3,310		--		3,310		3,310		238		3,877
Multi-Family Residential		--		--		--		--		--		--
Land		2,980		2,980		--		2,980		--		2,951
Construction		--		--		--		--		--		--
Equity and Second Mortgage		30		30		--		30		--		30
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		623		623		--		623		--		630
Consumer Loans		--		--		--		--		--		--
Total	$	7,412	$	4,102	$	3,310	$	7,412	$	238	$	7,962

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):

	December 31, 2019
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	457		$	--		$	--		$	457
1-4 Family Residential			76			--			--			76
Commercial real estate			3,085			--			--			3,085
	June 30, 2019
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	457		$	122		$	122		$	579
1-4 Family Residential			76			--			--			76
Commercial real estate			3,310			--			--			3,310

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

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 December 31, 2019, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.

4.Deposits

Deposits at December 31, 2019 and June 30, 2019 consist of the following classifications:

	December 31, 2019		June 30, 2019
	(In Thousands)
Non-Interest Bearing	$	65,066	$	59,351
NOW Accounts		33,777		31,045
Money Markets		71,820		74,934
Passbook Savings		63,506		39,569
		234,169		204,899
Certificates of Deposit		167,196		183,265
Total Deposits	$	401,365	$	388,164

5.Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three months and six months ended December 31, 2019 and 2018 were calculated as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
	(In Thousands, Except Per Share Data)
Net income	$	588	$	1,175	$	1,835	$	2,393
Weighted average shares outstanding – basic		1,699		1,776		1,707		1,782
Effect of dilutive common stock equivalents		133		126		129		131
Adjusted weighted average shares outstanding – diluted		1,832		1,902		1,836		1,913
Basic earnings per share	$	0.35	$	0.66	$	1.07	$	1.34
Diluted earnings per share	$	0.32	$	0.62	$	1.00	$	1.25

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.Earnings Per Share (continued)

For the three months ended December 31, 2019 and 2018, there were outstanding options to purchase 274,294 and 284,048 shares, respectively, at a weighted average exercise price of $18.04 and $17.98 per share, respectively and for the six months ended December 31, 2019 and 2018, there were outstanding options to purchase 274,963 and 290,715 shares, respectively, at a weighted average exercise price of $18.04 and $17.94 per share, respectively. For the quarter ended December 31, 2019 and 2018, 133,516 options and 125,890 were included in the computation of diluted earnings per share. For the six month period ended December 31, 2019 and 2018, 128,785 options and 131,177 options were included in the computation of diluted earnings per share.

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

	Three Months Ended December 31,						Six Months Ended December 31,
	2019			2018			2019			2018
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(94	)		(105	)		(95	)		(107	)
Average unearned RRP shares		--			(2	)		(1	)		(1	)
Average Company stock purchased		(1,269	)		(1,179	)		(1,259	)		(1,172	)
Weighted average shares outstanding		1,699			1,776			1,707			1,782

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 vested as of July 31, 2019 such that there are no shares remaining in the Recognition Plan.

The cost associated with the Recognition Plan is based on the share price of $18.92 on July 31, 2014, which represents the fair market price of the Company’s stock on the date on which the Recognition Plan shares were granted. The cost of the Recognition Plan was recognized over the five year vesting period.

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).  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, the 12,705 outstanding options as of December 31, 2019 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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.Stock-Based Compensation (continued)

Stock Option Plan (continued)

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 December 31, 2019, there were 389 stock options available for future grant under the 2011 Option Plan.

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.

Stock Incentive Plans

On November 12, 2014, the shareholders of the Company approved the adoption of the Company’s 2014 Stock Incentive Plan (the “2014 Stock Incentive Plan”) for the benefit of employees and non-employee directors as an incentive to contribute to the success of the Company and reward employees for outstanding performance and the attainment of targeted goals.  The 2014 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 2014 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. On February 5, 2019, the Company granted a total of 3,000 plan share awards and 13,500 stock options to key employees vesting ratably over five years. The 2014 Stock Incentive Plan cost is recognized over the five year vesting period.

On November 13, 2019, the shareholders of the Company approved the adoption of the Company’s 2019 Stock Incentive Plan (the “2019 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 2019 Stock Incentive Plan covers a total of 125,000 shares, of which no more than 31,250 shares, or 25% of the plan, may be share rewards.  The balance of the plan is reserved for stock option awards which would total 93,750 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.  As of December 31, 2019, there were no outstanding plan share awards or stock options granted pursuant to the 2019 Stock Incentive Plan.

Compensation expense pertaining to the 2011 Recognition Plan and the share awards under the 2014 Stock Incentive Plan was approximately $158,000 and $159,000 for the six months ended December 31, 2019 and 2018, respectively. For the six months ended December 31, 2019 and 2018, compensation expense charged to operations for stock options granted under the Option Plan and the 2014 Stock Incentive Plan was $69,000 and $68,000, respectively.

7.Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2.8 million and $2.8 million at December 31, 2019 and June 30, 2019, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.Fair Value Disclosures

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

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

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

Cash and Cash Equivalents

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

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

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.Fair Value Disclosures (continued)

At December 31, 2019 and June 30, 2019, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	December 31, 2019				June 30, 2019
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	14,896	$	14,896	$	18,108	$	18,108
Securities Available-for-Sale		57,013		57,013		41,655		41,655
Securities to be Held-to-Maturity		22,428		22,682		25,349		25,532
Loans Held-for-Sale		13,793		13,793		8,608		8,608
Loans Receivable	$	323,568	$	312,100	$	324,134	$	310,812
Financial Liabilities
Deposits	$	401,365	$	385,130	$	388,164	$	368,212
Advances from FHLB		1,209		1,259		1,355		1,246
Off-Balance Sheet Items
Mortgage Loan Commitments	$	8,754	$	8,754	$	8,981	$	8,981

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.Fair Value Disclosures (continued)

• 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 six months ended December 31, 2019.

Fair values of assets and liabilities measured on a recurring basis at December 31, 2019 and June 30, 2019 are as follows:

	Fair Value Measurements Using:
December 31, 2019	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	$	--	$	7,044	$	--	$	7,044
FNMA		--		43,009		--		43,009
GNMA		--		6,960		--		6,960
Total	$	--	$	57,013	$	--	$	57,013

	Fair Value Measurements Using:
June 30, 2019	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	$	--	$	8,080	$	--	$	8,080
FNMA		--		25,277		--		25,277
GNMA		--		8,298		--		8,298
Total	$	--	$	41,655	$	--	$	41,655

9.Subsequent Events

In accordance with FASB ASC 855, Subsequent Events, the Company has evaluated subsequent events through the date that the financial statements were available to be 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 Home Federal Bank (the “Bank”), its wholly owned subsidiary. The Bank’s results of operations depend, to a large extent, on net interest income, which is the difference between the income earned on its loan and investment portfolios and the cost of funds, consisting of the interest paid on deposits and borrowings.  Results of operations are also affected by provisions for loan losses and loan sale activities.  Non-interest expense principally consists of compensation and employee benefits, office occupancy and equipment expense, data processing, and other expenses.  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.

The Bank operates from its main office in Shreveport, Louisiana and seven full service branch offices located in Shreveport and Bossier City, Louisiana.  The Company’s primary market area is the Shreveport-Bossier City metropolitan area.

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 basis 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, 2019 to December 31, 2019

At December 31, 2019, the Company reported total assets of $455.3 million, an increase of $12.8 million, or 2.9%, compared to total assets of $442.5 million at June 30, 2019. The increase in assets was comprised primarily of increases in investment securities of $12.4 million, or 18.6%, from $67.0 million at June 30, 2019 to $79.4 million at December 31, 2019, loans held-for-sale of $5.2 million, or 60.2%, from $8.6 million at June 30, 2019 to $13.8 million at December 31, 2019, other assets of $135,000, or 19.0%, from $710,000 at June 30, 2019 to $845,000 at December 31, 2019, bank owned life insurance of $71,000, or 1.0%, from $6.9 million at June 30, 2019 to $7.0 million at December 31, 2019, and deferred tax assets of $45,000, or 5.3%, from $849,000 at June 30, 2019 to $894,000 at December 31, 2019.  These increases were partially offset by decreases in cash and cash equivalents of $3.2 million, or 17.7%, from $18.1 million at June 30, 2019 to $14.9 million at December 31, 2019, real estate owned of $886,000, or 64.9%, from $1.4 million at June 30, 2019 to $480,000 at December 31, 2019, loans receivable net of $566,000, or 0.2%, from $324.1 million at June 30, 2019 to $323.6 million at December 31, 2019, and premises and equipment of $305,000, or 2.3%, from $13.6 million at June 30, 2019 to $13.3 million at December 31, 2019.  The increase in investment securities was primarily due to the purchase of $15.3 million of mortgage-backed securities partially offset by $2.7 million of principal repayments on mortgage-backed securities.  The increase in loans held-for-sale resulted primarily from an increase in loans originated for sale during the six months ended December 31, 2019.  The decrease in real estate owned was due to the sale of three one-to-four family residences during the six months ended December 31, 2019.

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Discussion of Financial Condition Changes from June 30, 2019 to December 31, 2019 (continued)

Cash and Cash Equivalents

Cashand cash equivalents decreased $3.2 million, or 17.7%, from $18.1 million at June 30, 2019 to $14.9 million at December 31, 2019. The $3.2 million decrease in cash and cash equivalents was due to purchases of investment securities.

Loans Receivable, Net

Loans receivable, net, decreased by $566,000, or 0.2%, to $323.6 million at December 31, 2019 compared to $324.1 million at June 30, 2019.  The decrease in loans receivable, net was primarily due to decreases in one-to-four family residential loans of $3.9 million, multi-family loans of $3.7 million, equity line-of-credit loans of $1.4 million, commercial non-real estate loans of $613,000, and consumer loans of $108,000, partially offset by increases in commercial real estate loans $4.5 million, construction loans of $3.4 million, land loans of $1.3 million, and equity and second mortgage loans of $32,000.

Loans Held-for-Sale

Loans held-for-sale increased $5.2 million, or 60.2%, from $8.6 million at June 30, 2019 to $13.8 million at December 31, 2019.  The increase in loans held-for-sale results primarily from an increase in the origination volume during the six months ended December 31, 2019.

Investment Securities

Investment securities amounted to $79.4 million at December 31, 2019 compared to $67.0 million at June 30, 2019, an increase of $12.4 million, or 18.6%.  The increase in investment securities was primarily due to the purchase of mortgage-backed securities of $21.2 million, offset by $8.7 million of principal repayments on mortgage-backed securities.

Premises and Equipment, Net

Premises and equipment, net decreased $305,000, or 2.3%, to $13.3 million at December 31, 2019 compared to $13.6 million at June 30, 2019.

Asset Quality

At December 31, 2019, the Company had $3.8 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 $5.1 million of non-performing assets at June 30, 2019, consisting of one commercial business loan, three single-family residential loans, onelot loan, one land loan, and one residential lot in other real estate owned at December 31, 2019 compared to five single-family residential loans, two line of credit loans, two commercial business loans, one lot loan, one land loan, one residential lot in other real estate owned, and two properties that secured single-family residential loans in other real estate owned at June 30, 2019. At December 31, 2019, the Company had two single family residential loans, one commercial business loan, two commercial land and lot development loans, and six loans to one borrowerconsisting of threecommercial real estate loans, two non-real estate loans, and one single family residential loan classified as substandard compared to four single family residential loans, one line of credit loan, two commercial business loans, two commercial land and lot development loans, and five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one single family residential loan classified as substandard at June 30, 2019. There were no loans classified as doubtful at December 31, 2019 or June 30, 2019.There was a charge-off of $917,000 against the provision for loan losses related to one commercial business loan to one borrower that declared bankruptcy during the six month period ended December 31, 2019.

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Discussion of Financial Condition Changes from June 30, 2019 to December 31, 2019 (continued)

Total Liabilities

Total liabilities increased $13.2 million, or 3.4%, from $392.1 million at June 30, 2019 to $405.3 million at December 31, 2019 primarily due to an increase in total deposits of $13.2 million, or 3.4%, to $401.4 million at December 31, 2019 compared to $388.2 million at June 30, 2019, an increase in other borrowings of $750,000, or 166.7%, from $450,000 at June 30, 2019 to $1.2 million at December 31, 2019,  partially offset by a decrease of $312,000, or 53.4%, in advances from borrowers for taxes and insurance from $584,000 at June 30, 2019 to $272,000 at December 31, 2019, a decrease of $283,000, or 18.2%, in other accrued expenses and liabilities from $1.6 million at June 30, 2019 to $1.3 million at December 31, 2019, and a decrease of $146,000, or 10.8%, in advances from the Federal Home Loan Bank from $1.4 million at June 30, 2019 to $1.2 million at December 31, 2019.  The increase in deposits was primarily due to a $23.9 million, or 60.5%, increase in savings deposits from $39.6 million at June 30, 2019 to $63.5 million at December 31, 2019, a $5.7 million, or 9.6%, increase in non-interest bearing deposits from $59.4 million at June 30, 2019 to $65.1 million at December 31, 2019, and a $2.7 million, or 8.8%, increase in NOW accounts from $31.0 million at June 30, 2019 to $33.8 million at December 31, 2019,  partially offset by a decrease of $16.1  million, or 8.8%, in certificates of deposit from $183.3 million at June 30, 2019 to $167.2 million at December 31, 2019, and a decrease in money market deposits of $3.1 million, or 4.2%, from $74.9 million at June 30, 2019 to $71.8 million at December 31, 2019. The Company had $16.0 million in brokered deposits at December 31, 2019 compared to $11.2 million at June 30, 2019. 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 decrease in advances from the Federal Home Loan Bank was primarily due to principal paydowns on amortizing advances.

Shareholders’ Equity

Shareholders’ equity decreased $368,000, or 0.7%, to $50.0 million at December 31, 2019 from $50.3 million at June 30, 2019.  The primary reasons for the changes in shareholders’ equity from June 30, 2019 were the acquisition of Company stock of $2.0 million, and dividends paid totaling $579,000, and a decrease in the Company’s accumulated other comprehensive income of $90,000, partially offset by net income of $1.8 million, the vesting of restricted stock awards, share awards, stock options, and the release of employee stock ownership plan shares totaling $421,000, and proceeds from the issuance of common stock from the exercise of stock options of $50,000.

Regulatory Capital

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At December 31, 2019, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements.

Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2019 and 2018

General

The decrease in net income for the three months ended December 31, 2019 resulted primarily from an $850,000, or 850.0%, increase in provision for loan losses, an increase of $285,000, or 10.5%, in non-interest expense, and a decrease of $146,000, or 3.7%, in net interest income, partially offset by an increase of $478,000, or 108.9%, in non-interest income and a $216,000, or 59.5%, decrease in provision for income taxes.  The increase in the provision for loan losses for the three months ended December 21, 2019, was primarily due to a $917,000 charge-off during the quarter related to one commercial business loan to one borrower that declared bankruptcy.  The decrease in net interest income for the three months ended December 31, 2019 was primarily due to a $312,000, or 29.0%, increase in total interest expense, primarily due to an increase of 32 basis points in the average rate on total interest-bearing deposits, partially offset by an increase of $166,000, or 3.3%, in total interest income.  The Company’s average interest rate spread was 3.18% for the three months ended December 31, 2019 compared to 3.58% for the three months ended December 31, 2018. The Company’s net interest margin was 3.52% for the three months ended December 31, 2019 compared to 3.86% for the three months ended December 31, 2018. The decrease in net interest margin on a comparative quarterly basis was primarily the result of an increase of 32 basis points in average cost of interest-bearing deposits for the three months ended December 31, 2019 compared to the prior year quarterly period.

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Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2019 and 2018 (continued)

The decrease in net income for the six months ended December 31, 2019 resulted primarily from a $775,000, or 221.4%, increase in provision for loan losses, an increase of $587,000, or 10.7%, in non-interest expense, and a decrease of $221,000, or 2.8%, in net interest income, partially offset by an increase of $774,000, or 69.9%, in non-interest income and a $251,000, or 37.1%, decrease in provision for income taxes.  The increase in the provision for loan losses for the six-month period was primarily due to the $917,000 charge-off described above that occurred during the quarter ended December 31, 2019.  The decrease in net interest income for the six month period was primarily due to a $669,000, or 32.3%, increase in total interest expense, partially offset by a $448,000, or 4.5%, increase in total interest income. The Company’s average interest rate spread was 3.21% for the six months ended December 31, 2019 compared to 3.59% for the six months ended December 31, 2018. The Company’s net interest margin was 3.56% for the six months ended December 31, 2019 compared to 3.86% for the six months ended December 31, 2018.  The increase in the average interest rate spread is attributable primarily to an increase of 36 basis points in average cost of interest-bearing deposits for the six months ended December 31, 2019 compared to the prior year six month period.

Net Interest Income

The decrease in net interest income for the three months ended December 31, 2019 was primarily due to a $312,000, or 29.0%, increase in total interest expense, primarily due to an increase of 32 basis points in the average rate on interest-bearing deposits, partially offset by an increase of $166,000, or 3.3%, in total interest income. The cost of funds from Federal Home Loan Bank borrowings decreased $28,000, or 66.7%, compared to the prior year three month period and interest paid on deposits increased $330,000, or 32.0%, compared to the prior year three month period. Interest paid on other borrowings increased $10,000 compared to the prior year three month period. The Company’s average interest rate spread was 3.18% for the three months ended December 31, 2019 compared to 3.58% for the three months ended December 31, 2018. The Company’s net interest margin was 3.52% for the three months ended December 31, 2019 compared to 3.86% for the three months ended December 31, 2018. The decrease in net interest margin on a comparative quarterly basis was primarily the result of an increase of 32 basis points in average cost of interest-bearing deposits for the three months ended December 31, 2019 compared to the prior year quarterly period.

Net interest income for the six months ended December 31, 2019 was $7.6 million, a decrease of $221,000, or 2.8%, in comparison to the six months ended December 31, 2018.  The decrease in net interest income for the six month period was primarily due to a $669,000, or 32.3%, increase in total interest expense, partially offset by an increase of $448,000, or 4.5%, in interest income.  The cost of funds from Federal Home Loan Bank borrowings decreased $80,000, or 72.7%, compared to the prior year six month period and interest paid on deposits increased $736,000, or 37.6%, compared to the prior year six month period.  Interest paid on other borrowing increased $13,000 compared to the prior year six month period.  The Company’s average interest rate spread was 3.21% for the six months ended December 31, 2019, compared to 3.59% for the six months ended December 31, 2018. The Company’s net interest margin was 3.56% for the six months ended December 31, 2019, compared to 3.86% for the six months ended December 31, 2018.  The increase in the average interest rate spread is attributable primarily to an increase of 36 basis points in average cost of interest-bearing deposits for the six months ended December 31, 2019 compared to the prior year six month period.

Provision for Losses on Loans

Based on an analysis of historical experience, the volume and type of lending conducted by Home Federal Bank, the status of past due principal and interest payments, general economic conditions, particularly as such conditions relate to our market area, and other factors related to the collectability of Home Federal Bank’s loan portfolio, a provision for loan losses of $950,000 and $1.1 million was made during the three and six months ended December  31, 2019, respectively, compared to a $100,000 and $350,000 provision made during the three and six months ended December 31, 2018. The allowance for loan losses was $3.5 million, or 1.7% of total loans receivable, at December 31, 2019 compared to $3.5 million, or 1.06% of total loans receivable, at December 31, 2018.  At December 31, 2019, Home Federal Bank had $3.3 million in non-performing loans and $480,000 in foreclosed assets which totaled $3.8 million in non-performing assets.  At December 31, 2018, Home Federal Bank had $670,000 in non-performing loans and $747,000 in foreclosed assets. At December 31, 2019, the Company had two single family residential loans, one commercial business loan, two commercial land and lot development loans, and six loans to one borrower consisting of three commercial real estate loans, two commercial business loans and one single family residential loan classified as substandard compared to four single family residential loans, one commercial business loan, and five loans to one borrower consisting of two commercial real estate loans, two non-real estate loans, and one single family residential substandard at December 31, 2018. There were no loans classified as doubtful at December 31, 2019 or December 31, 2018.  At December 31, 2019 the Bank had troubled debt restructurings involving six loans to one borrower consisting of three commercial real estate loans, two commercial loans, and one one-to-four family residential loan totaling 3.6 million.  At December 31, 2018 the Bank had troubled debt restructurings involving one commercial loan contract to one borrower with a recorded investment of approximately $122,000, one single family residential loan totoaling$273,000, along with another troubled debt restructuring at December 31, 2018 consisting of five loans to one borrower consisting of two commercial real estate loans, two commercial loans, and one one-to-four family residential loan totaling $4.6 million   There can be no assurance that the loan loss allowance will be sufficient to cover losses on non-performing assets in the future.

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Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2019 and 2018 (continued)

Non-interest Income

The $478,000 decrease in non-interest income for the three months ended December 31, 2019, compared to the prior year quarterly period, was primarily due to a $230,000 loss on sale of real estate during the 2018 period compared to none in the 2019 period, an increase of $206,000 in gain on sale of mortgage loans, and a $53,000 increase in service charges on deposit accounts, partially offset by a decrease of $11,000 in other income. The $774,000 increase in non-interest income for the six months ended December 31, 2019 compared to the prior year six month period was primarily due to a increase of $381,000 in gain on sale of loans, a decrease of $308,000 in loss on sale of real estate, an increase of $99,000 in service charges on deposit accounts, and a $1,000 increase in income from bank owned life insurance, partially offset by a $15,000 decrease in other non-interest 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

The $285,000 increase in non-interest expense for the three months ended December 31, 2019, compared to the same period in 2018, is primarily attributable to increases of $343,000 in compensation and benefits expense, $27,000 in occupancy and equipment expense, and $25,000 in franchise and bank shares tax expense. The increases were partially offset by decreases of $22,000 in deposit insurance premiums, $19,000 in advertising expense, $18,000 in other non-interest expense, $16,000 in audit and examination fees, $16,000 in data processing expense, $14,000 in loan and collection expense, and $5,000 in legal fees. The $587,000 increase in non-interest expense for the six months ended December 31, 2019, compared to the same six month period in 2018, is primarily attributable to increases of $533,000 in compensation and benefits expense, $79,000 in occupancy and equipment expense, $70,000 in advertising expense, $43,000 in loan and collection expense, $40,000 in franchise and bank shares tax, and $3,000 in other non-interest expenses, partially offset by decreases of $75,000 in real estate owned valuation expense, $52,000 in deposit insurance premiums, $35,000 in legal fees, $13,000 in audit and examination fees, and $6,000 in data processing expense.

The aggregate compensation expense recognized by the Company for its Stock Option, Share Award, ESOP, and Recognition and Retention Plans amounted to $267,000 and $421,000 for the three and six months ended December 31, 2019, respectively, compared to $261,000 and $413,000 for three and six months ended December 31, 2018, respectively.

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings.  For the three and six months ended December 31, 2019, the Company recognized franchise and bank shares tax expense of $122,000 and $237,000, respectively, compared to $97,000 and $197,000 for the same periods in 2018.

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Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2019 and 2018 (continued)

Income Taxes

Income taxes amounted to $147,000 and $426,000 for the three and six months ended December 31, 2019, respectively, resulting in an effective tax rate of 20.0% and 18.8%.  Income taxes amounted to $363,000 and $677,000 for the three and six months ended December 31, 2018, respectively.

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 December 31,
	2019							2018
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	331,368	$	4,632		5.55	%	$	327,893	$	4,569		5.53	%
Investment securities		72,291		442		2.43			58,704		333		2.25
Interest-earning deposits		21.481		88		1.63			16.526		94		2.26
Total interest-earning assets	$	425,140		5,162		4.82	%	$	403,123		4,996		4.92	%
Non-interest-earning assets		32,515							28,394
Total assets	$	457,655						$	431,517
Interest-bearing liabilities:
Savings accounts	$	57,878		194		1.33	%	$	35,685		48		0.53	%
NOW accounts		31,133		50		0.64			30,172		41		0.54
Money market accounts		75,371		230		1.21			70,292		168		0.95
Certificate accounts		168,834		886		2.08			177,615		773		1.73
Total interest bearing deposits		333,216		1,360		1.62			313,764		1,030		1.30
Other Borrowings		1,063		13		4.85			206		3		3.85
FHLB advances		1,233		14		4.66			5,334		42		3.12
Total interest-bearing liabilities	$	335,512		1,387		1.64	%	$	319,304		1,075		1.34	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		67,460							60,827
Other liabilities		4,340							2,996
Total interest bearing liabilities		407,312							383,127
Total Stockholders’ Equity(1)		50,343							48,390
Total liabilities and equity	$	457,655						$	431,517
Net interest-earning assets	$	89,628						$	83,819
Net interest income; average interest rate spread(2)			$	3,775		3.18	%			$	3,921		3.58	%
Net interest margin(3)						3.52	%						3.86	%
Average interest-earning assets to average   interest-bearing liabilities						126.71	%						126.25	%

__________________

(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 Six Month Periods Ended December 31, 2019 and 2018 (continued)

	Six Months Ended December 31,
	2019							2018
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	333,955	$	9,284		5.52	%	$	326,807	$	9,063		5.50	%
Investment securities		68,905		848		2.44			58,179		645		2.20
Interest-earning deposits		20,570		198		1.91			16,374		174		2.11
Total interest-earning assets	$	423,430		10,330		4.84	%	$	401,360		9,882		4.88	%
Non-interest-earning assets		27,415							28,511
Total assets	$	450,845						$	429,871
Interest-bearing liabilities:
Savings accounts	$	52,906		314		1.18	%	$	35,890		97		0.54	%
NOW accounts		31,321		99		0.62			31,626		83		0.52
Money market accounts		74,889		459		1.22			70,294		319		0.90
Certificate accounts		172,866		1,823		2.09			172,252		1,460		1.68
Total interest-bearing deposits		331,982		2,695		1.61			310,062		1,959		1.25
Other bank borrowings		703		17		4.80			202		4		3.93
FHLB advances		1,270		30		4.69			7,924		110		2.75
Total interest-bearing liabilities	$	333,955		2,742		1.63	%	$	318,188		2,073		1.29	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		64,815							61,012
Other liabilities		2,471							2,902
Total liabilities		401,241							382,102
Total Stockholders’ Equity(1)		49,604							47,769
Total liabilities and equity	$	450,845						$	429,871
Net interest-earning assets	$	89,475						$	83,172
Net interest income; average interest rate spread(2)			$	7.588		3.21	%			$	7.809		3.59	%
Net interest margin(3)						3.56	%						3.86	%
Average interest-earning assets to average   interest-bearing liabilities						126.79	%						126.14	%

_____________

(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 $2.7 million at December 31, 2019.

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 December 31, 2019, Home Federal Bank had $1.2 million in advances from the Federal Home Loan Bank of Dallas and had $161.5 million in additional borrowing capacity.  Additionally, at December 31, 2019, 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 December 31, 2019. In addition, the Company had available a 2.0 million line of credit agreement at December 31, 2019 with First National Bankers Bank. At December 31, 2019 there was a $1.2 million balance in the credit line.

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Comparison of Operating Results for the Three and Six Month Periods Ended December 31, 2019 and 2018 (continued)

At December 31, 2019, Home Federal Bank had outstanding loan commitments of $35.6 million to originate loans and commitments under unused lines of credit of $8.8 million.  At December 31, 2019, certificates of deposit scheduled to mature in less than one year totaled $92.0 million.Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal in a rising interest rate environment.  Home Federal Bank intends to utilize its high levels of liquidity to fund its lending activities.  If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale, as needed.

At December 31, 2019, Home Federal Bank exceeded each of its regulatory capital requirements with tangible equity, common equity Tier 1, core, and total risk-based capital ratios of 11.10%, 16.38%, 11.10%, and 17.51%, respectively.

Off-Balance Sheet Arrangements

At December 31, 2019, 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.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

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.

37

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 December 31, 2019 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)
October 1, 2020 – October 31, 2019		1,428	$	33.03		1,428		88,968
November 1, 2020 – November 30, 2019		4,189		32.62		4,189		84,779
December 1, 2020–December 31, 2019		1,000		37.90		1,000		83,779
Total		6,617	$	33.51		6,617

______________

Notes to this table:

(a) On December 12, 2018, the Company announced that its Board of Directors approved an eighth stock repurchase program for the repurchase of up to 95,000 shares to commence after the completion of the seventh stock repurchase program. The eighth repurchase program was completed on October 26, 2019.

(b) On September 11, 2019 the Company announced that its Board of Directors approved a ninth stock repurchase program for the repurchase of up to 90,000 shares, or approximately 5.0% of its outstanding shares of common stock.  The repurchase program does not have an expiration date.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.OTHER INFORMATION

Not applicable.

38

HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 6.EXHIBITS

No.		Description
10.1		Separation Agreement by and among Home Federal Bancorp, Inc. of Louisiana, Home Federal Bank and Daniel R. Herndon, dated as of November 22, 2019*(1)
10.2		Home Federal Bancorp, Inc. of Louisiana 2019 Stock Incentive Plan *(2)
31.1		Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
31.2		Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
32.0		Certification Pursuant to 18 U.S.C Section 1350
	101.INS	XBRL Instance Document
	101.SCH	XBRL Taxonomy Extension Schema Document
	101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
	101.LAB	XBRL Taxonomy Extension Label Linkbase Document
	101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
	101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document

__________

* Denotes a management contract or compensatory plan or arrangement.

(1) Incorporated herein by reference from the Company’s Current Report on Form 8-K filed with the SEC on November 22, 2019 (File No. 001-35019).

(2) Incorporated herein by reference from the Company’s definitive proxy statement for the Annual Meeting of Shareholders held on November 13, 2019 filed with the Commission on October 9, 2019 (File No. 001-35019).

39

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:   February 13, 2020	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: February 13, 2020

/s/James R. Barlow

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:  February 13, 2020

/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 December 31, 2019 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:         February 13, 2020		/s/James R. Barlow
	Name:	James R. Barlow
	Title	President and Chief Executive Officer
		(Principal Executive Officer)

Date:          February 13, 2020		/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

Loans Receivable, Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Allowance for loan losses [Roll Forward]
Beginning Balances			$ 3,452	$ 3,425	$ 3,425
Charge-Offs			(1,084)	(297)	(586)
Recoveries			4	1	13
Current Provision	$ 950	$ 100	1,125	350	600
Ending Balances	3,497	$ 3,479	3,497	3,479	3,452
Evaluated for Impairment [Abstract]
Individually	446		446		238
Collectively	3,051		3,051		3,214
Loans Receivable [Abstract]
Ending Balances - Total	327,270		327,270		327,760
Ending Balances, Evaluated for Impairment [Abstract]
Individually	6,898		6,898		7,412
Collectively	320,372		320,372		320,348
Real Estate Loans [Member]
Loans Receivable [Abstract]
Ending Balances - Total	291,233		291,233		291,002
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			1,017	1,166	1,166
Charge-Offs			(39)		(277)
Recoveries			0		0
Current Provision			7		128
Ending Balances	985		985		1,017
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	985		985		1,017
Loans Receivable [Abstract]
Ending Balances - Total	115,081		115,081		118,945
Ending Balances, Evaluated for Impairment [Abstract]
Individually	326		326		469
Collectively	114,755		114,755		118,476
Real Estate Loans [Member] | Commercial [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			508	436	436
Charge-Offs			0		0
Recoveries			0		0
Current Provision			67		72
Ending Balances	575		575		508
Evaluated for Impairment [Abstract]
Individually	13		13		238
Collectively	562		562		270
Loans Receivable [Abstract]
Ending Balances - Total	87,939		87,939		83,397
Ending Balances, Evaluated for Impairment [Abstract]
Individually	3,085		3,085		3,310
Collectively	84,854		84,854		80,087
Real Estate Loans [Member] | Multi Family [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			338	256	256
Charge-Offs			0		0
Recoveries			0		0
Current Provision			(12)		82
Ending Balances	326		326		338
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	326		326		338
Loans Receivable [Abstract]
Ending Balances - Total	42,427		42,427		46,171
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	42,427		42,427		46,171
Real Estate Loans [Member] | Land [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			100	161	161
Charge-Offs			0		(289)
Recoveries			0		0
Current Provision			469		228
Ending Balances	569		569		100
Evaluated for Impairment [Abstract]
Individually	433		433		0
Collectively	136		136		100
Loans Receivable [Abstract]
Ending Balances - Total	17,384		17,384		16,106
Ending Balances, Evaluated for Impairment [Abstract]
Individually	2,981		2,981		2,980
Collectively	14,403		14,403		13,126
Real Estate Loans [Member] | Construction [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			115	163	163
Charge-Offs			0		0
Recoveries			0		0
Current Provision			12		(48)
Ending Balances	127		127		115
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	127		127		115
Loans Receivable [Abstract]
Ending Balances - Total	12,936		12,936		9,502
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	12,936		12,936		9,502
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			144	311	311
Charge-Offs			0		(20)
Recoveries			4		13
Current Provision			(17)		(160)
Ending Balances	131		131		144
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	131		131		144
Loans Receivable [Abstract]
Ending Balances - Total	15,466		15,466		16,881
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		30
Collectively	15,466		15,466		16,851
Commercial Loans [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			1,227	929	929
Charge-Offs			(1,045)		0
Recoveries			0		0
Current Provision			599		298
Ending Balances	781		781		1,227
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	781		781		1,227
Loans Receivable [Abstract]
Ending Balances - Total	35,377		35,377		35,990
Ending Balances, Evaluated for Impairment [Abstract]
Individually	506		506		623
Collectively	34,871		34,871		35,367
Consumer Loans [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			3	$ 3	3
Charge-Offs			0		0
Recoveries			0		0
Current Provision			0		0
Ending Balances	3		3		3
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	3		3		3
Loans Receivable [Abstract]
Ending Balances - Total	660		660		768
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	$ 660		$ 660		$ 768

XML

Loans Receivable (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019	Dec. 31, 2018	Jun. 30, 2018
Loan receivable [Abstract]
Gross Loans Receivable	$ 327,270	$ 327,760
Less: Allowance for Loan Losses	(3,497)	(3,452)	$ (3,479)	$ (3,425)
Unamortized Loan Fees	(205)	(174)
Net Loans Receivable	323,568	324,134
Loans Secured by Mortgages on Real Estate [Member]
Loan receivable [Abstract]
Gross Loans Receivable	291,233	291,002
Loans Secured by Mortgages on Real Estate [Member] | One-to-Four-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	115,081	118,945
Loans Secured by Mortgages on Real Estate [Member] | Commercial [Member]
Loan receivable [Abstract]
Gross Loans Receivable	87,939	83,397
Less: Allowance for Loan Losses	(575)	(508)		(436)
Loans Secured by Mortgages on Real Estate [Member] | Multi-Family Residential [Member]
Loan receivable [Abstract]
Gross Loans Receivable	42,427	46,171
Less: Allowance for Loan Losses	(326)	(338)		(256)
Loans Secured by Mortgages on Real Estate [Member] | Land [Member]
Loan receivable [Abstract]
Gross Loans Receivable	17,384	16,106
Less: Allowance for Loan Losses	(569)	(100)		(161)
Loans Secured by Mortgages on Real Estate [Member] | Construction [Member]
Loan receivable [Abstract]
Gross Loans Receivable	12,936	9,502
Less: Allowance for Loan Losses	(127)	(115)		(163)
Loans Secured by Mortgages on Real Estate [Member] | Equity and Second Mortgage [Member]
Loan receivable [Abstract]
Gross Loans Receivable	1,294	1,262
Loans Secured by Mortgages on Real Estate [Member] | Equity Lines of Credit [Member]
Loan receivable [Abstract]
Gross Loans Receivable	14,172	15,619
Commercial Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	35,377	35,990
Less: Allowance for Loan Losses	(781)	(1,227)		(929)
Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	660	768
Less: Allowance for Loan Losses	(3)	(3)		$ (3)
Consumer Loans [Member] | Loans on Savings Accounts [Member]
Loan receivable [Abstract]
Gross Loans Receivable	385	439
Consumer Loans [Member] | Other Consumer Loans [Member]
Loan receivable [Abstract]
Gross Loans Receivable	$ 275	$ 329

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Calculation of earnings per share [Abstract]
Net income	$ 588	$ 1,175	$ 1,835	$ 2,393
Weighted average shares outstanding - basic (in shares)	1,699,000	1,776,000	1,707,000	1,782,000
Effect of dilutive common stock equivalents (in shares)	133,000	126,000	129,000	131,000
Adjusted weighted average shares outstanding- diluted (in shares)	1,832,000	1,902,000	1,836,000	1,913,000
Basic earnings per share (in dollars per share)	$ 0.35	$ 0.66	$ 1.07	$ 1.34
Diluted earnings per share (in dollars per share)	$ 0.32	$ 0.62	$ 1.00	$ 1.25
Outstanding options to purchase shares (in shares)	274,294	284,048	274,963	290,715
Weighted average price per share of outstanding options (in dollars per share)	$ 18.04	$ 17.98	$ 18.04	$ 17.94
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)	(94,000)	(105,000)	(95,000)	(107,000)
Average unearned RRP shares (in shares)	0	(2,000)	(1,000)	(1,000)
Average Company stock purchased	(1,269,000)	(1,179,000)	(1,259,000)	(1,172,000)
Weighted average shares outstanding (in shares)	1,699,000	1,776,000	1,707,000	1,782,000
Stock Options [Member]
Calculation of earnings per share [Abstract]
Effect of dilutive common stock equivalents (in shares)	133,516	125,890	128,785	131,177

XML

Earnings Per Share

6 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three months and six months ended December 31, 2019 and 2018 were calculated as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
	(In Thousands, Except Per Share Data)
Net income	$	588	$	1,175	$	1,835	$	2,393
Weighted average shares outstanding – basic		1,699		1,776		1,707		1,782
Effect of dilutive common stock equivalents		133		126		129		131
Adjusted weighted average shares outstanding – diluted		1,832		1,902		1,836		1,913
Basic earnings per share	$	0.35	$	0.66	$	1.07	$	1.34
Diluted earnings per share	$	0.32	$	0.62	$	1.00	$	1.25

For the three months ended December 31, 2019 and 2018, there were outstanding options to purchase 274,294 and 284,048 shares, respectively, at a weighted average exercise price of $18.04 and $17.98 per share, respectively and for the six months ended December 31, 2019 and 2018, there were outstanding options to purchase 274,963 and 290,715 shares, respectively, at a weighted average exercise price of $18.04 and $17.94 per share, respectively. For the quarter ended December 31, 2019 and 2018, 133,516 options and 125,890 were included in the computation of diluted earnings per share. For the six month period ended December 31, 2019 and 2018, 128,785 options and 131,177 options were included in the computation of diluted earnings per share.

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

	Three Months Ended December 31,						Six Months Ended December 31,
	2019			2018			2019			2018
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(94	)		(105	)		(95	)		(107	)
Average unearned RRP shares		--			(2	)		(1	)		(1	)
Average Company stock purchased		(1,269	)		(1,179	)		(1,259	)		(1,172	)
Weighted average shares outstanding		1,699			1,776			1,707			1,782

XML

Subsequent Events

6 Months Ended

Dec. 31, 2019

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 financial statements were available to be issued.

XML

Securities, Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	$ 178	$ 0
Over Twelve Months	305	391
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	14,048	0
Over Twelve Months	14,553	19,149
Public Deposits [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	1,900	2,300
FHLB Advances [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	161,400	152,200
Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	178	0
Over Twelve Months	305	391
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	14,048	0
Over Twelve Months	$ 14,553	$ 19,149

XML

Loans Receivable (Tables)

6 Months Ended

Dec. 31, 2019

Loans Receivable [Abstract]

Loans Receivable

Loans receivable are summarized as follows:

	December 31, 2019			June 30, 2019
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	115,081		$	118,945
Commercial		87,939			83,397
Multi-Family Residential		42,427			46,171
Land		17,384			16,106
Construction		12,936			9,502
Equity and Second Mortgage		1,294			1,262
Equity Lines of Credit		14,172			15,619
Total Mortgage Loans		291,233			291,002
Commercial Loans		35,377			35,990
Consumer Loans
Loans on Savings Accounts		385			439
Other Consumer Loans		275			329
Total Consumer Loans		660			768
Total Loans		327,270			327,760
Less:   Allowance for Loan Losses		(3,497	)		(3,452	)
Unamortized Loan Fees		(205	)		(174	)
Net Loans Receivable	$	323,568		$	324,134

Analysis of Allowance for Loan Losses

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

	Six Months Ended December 31,
	2019			2018
	(In Thousands)
Balance - Beginning of Period	$	3,452		$	3,425
Provision for Loan Losses		1,125			350
Loan Charge-Offs		(1,084	)		(297	)
Recoveries		4			1
Balance - End of Period	$	3,497		$	3,479

Grading of Loans, Segregated by Class of Loans

The following tables present the grading of loans, segregated by class of loans, as of December 31, 2019 and June 30, 2019:

December 31, 2019	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	114,388	$	366	$	327	$	--	$	115,081
Commercial		84,854		--		3,085		--		87,939
Multi-Family Residential		42,427		--		--		--		42,427
Land		14,404		--		2,980		--		17,384
Construction		12,936		--		--		--		12,936
Equity and Second Mortgage		1,294		--		--		--		1,294
Equity Lines of Credit		14,172		--		--		--		14,172
Commercial Loans		34,871		--		506		--		35,377
Consumer Loans		660		--		--		--		660
Total	$	320,006	$	366	$	6,898	$	--	$	327,270

June 30, 2019	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	118,459	$	17	$	469	$	--	$	118,945
Commercial		80,087		--		3,310		--		83,397
Multi-Family Residential		46,171		--		--		--		46,171
Land		13,126		--		2,980		--		16,106
Construction		9,502		--		--		--		9,502
Equity and Second Mortgage		1,168		64		30		--		1,262
Equity Lines of Credit		15,619		--		--		--		15,619
Commercial Loans		35,367		--		623		--		35,990
Consumer Loans		768		--		--		--		768
Total	$	320,267	$	81	$	7,412	$	--	$	327,760

Aging Analysis of Past Due Loans Segregated by Class of Loans

The following tables present an aging analysis of past due loans, segregated by class of loans, as of December 31, 2019 and June 30, 2019:

December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment  > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,246	$	1,311	$	684	$	3,241	$	111,840	$	115,081	$	510
Commercial		--		--		--		--		87,939		87,939		--
Multi-Family Residential		--		--		--		--		42,427		42,427		--
Land		46		--		2,981		3,027		14,357		17,384		--
Construction		--		--		--		--		12,936		12,936		--
Equity and Second Mortgage		--		--		--		--		1,294		1,294		--
Equity Lines of Credit		19		208		--		227		13,945		14,172		--
Commercial Loans		--		--		49		49		35,328		35,377		49
Consumer Loans		--		--		--		--		660		660		--
Total	$	1,311	$	1,519	$	3,714	$	6,544	$	320,726	$	327,270	$	559

June 30, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,204	$	715	$	596	$	3,515	$	115,430	$	118,945	$	420
Commercial		--		--		--		--		83,397		83,397		--
Multi-Family Residential		--		--		--		--		46,171		46,171		--
Land		--		--		2,981		2,981		13,125		16,106		--
Construction		--		--		--		--		9,502		9,502		--
Equity and Second Mortgage		120		--		--		120		1,142		1,262		--
Equity Lines of Credit		--		49		--		49		15,570		15,619		--
Commercial Loans		--		--		215		215		35,775		35,990		49
Consumer Loans		--		--		--		--		768		768		--
Total	$	2,324	$	764	$	3,792	$	6,880	$	320,880	$	327,760	$	469

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 six months ended December 31, 2019 and year ended June 30, 2019 was as follows:

	Real Estate Loans
December 31, 2019	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	$	1,017		$	508	$	338		$	100	$	115	$	144		$	1,227		$	3	$	3,452
Charge-Offs		(39	)		--		--			--		--		--			(1,045	)		--		(1,084	)
Recoveries		--			--		--			--		--		4			--			--		4
Current Provision		7			67		(12	)		469		12		(17	)		599			--		1,125
Ending Balances	$	985		$	575	$	326		$	569	$	127	$	131		$	781		$	3	$	3,497
Evaluated for Impairment:
Individually		--			13		--			433		--		--			--			--		446
Collectively		985			562		326			136		127		131			781			3		3,051
Loans Receivable:
Ending Balances – Total	$	115,081		$	87,939	$	42,427		$	17,384	$	12,936	$	15,466		$	35,377		$	660	$	327,270
Ending Balances:
Evaluated for Impairment:
Individually		326			3,085		--			2,981		--		--			506			--		6,898
Collectively	$	114,755		$	84,854	$	42,427		$	14,403	$	12,936	$	15,466		$	34,871		$	660	$	320,372

	Real Estate Loans
June 30, 2019	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	$	1,166		$	436	$	256	$	161		$	163		$	311		$	929	$	3	$	3,425
Charge-Offs		(277	)		--		--		(289	)		--			(20	)		--		--		(586	)
Recoveries		--			--		--		--			--			13			--		--		13
Current Provision		128			72		82		228			(48	)		(160	)		298		--		600
Ending Balances	$	1,017		$	508	$	338	$	100		$	115		$	144		$	1,227	$	3	$	3,452
Evaluated for Impairment:
Individually		--			238		--		--			--			--			--		--		238
Collectively		1,017			270		338		100			115			144			1,227		3		3,214
Loans Receivable:
Ending Balances - Total	$	118,945		$	83,397	$	46,171	$	16,106		$	9,502		$	16,881		$	35,990	$	768	$	327,760
Ending Balances:
Evaluated for Impairment:
Individually		469			3,310		--		2,980			--			30			623		--		7,412
Collectively	$	118,476		$	80,087	$	46,171	$	13,126		$	9,502		$	16,851		$	35,367	$	768	$	320,348

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 December 31, 2019 and June 30, 2019:

December 31, 2019	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	$	326	$	326	$	--	$	326	$	--	$	328
Commercial		3,085		--		3,085		3,085		13		3,116
Multi-Family Residential		--		--		--		--		--		--
Land		2,981		--		2,981		2,981		433		2,981
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		506		506		--		506		--		506
Consumer Loans		--		--		--		--		--		--
Total	$	6,898	$	832	$	6,066	$	6,898	$	446	$	6,931

June 30, 2019	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	$	469	$	469	$	--	$	469	$	--	$	474
Commercial		3,310		--		3,310		3,310		238		3,877
Multi-Family Residential		--		--		--		--		--		--
Land		2,980		2,980		--		2,980		--		2,951
Construction		--		--		--		--		--		--
Equity and Second Mortgage		30		30		--		30		--		30
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		623		623		--		623		--		630
Consumer Loans		--		--		--		--		--		--
Total	$	7,412	$	4,102	$	3,310	$	7,412	$	238	$	7,962

Information about TDRs

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

	December 31, 2019
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	457		$	--		$	--		$	457
1-4 Family Residential			76			--			--			76
Commercial real estate			3,085			--			--			3,085

	June 30, 2019
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	457		$	122		$	122		$	579
1-4 Family Residential			76			--			--			76
Commercial real estate			3,310			--			--			3,310

XML

Summary of Accounting Policies (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)	Dec. 31, 2019 USD ($) Office Subsidiary	Dec. 31, 2018 USD ($)
Nature of Operations [Abstract]
Number of wholly-owned subsidiaries | Subsidiary			1
Non-Direct Response Advertising [Abstract]
Non-direct response advertising costs	$ 65	$ 84	$ 212	$ 142
Direct-response advertising costs			$ 0	$ 0
Buildings and Improvements [Member] | Minimum [Member]
Premises and Equipment [Abstract]
Estimated useful lives			10 years
Buildings and Improvements [Member] | Maximum [Member]
Premises and Equipment [Abstract]
Estimated useful lives			40 years
Furniture and Equipment [Member] | Minimum [Member]
Premises and Equipment [Abstract]
Estimated useful lives			3 years
Furniture and Equipment [Member] | Maximum [Member]
Premises and Equipment [Abstract]
Estimated useful lives			10 years
Caddo and Bossier Parishes, Louisiana [Member]
Nature of Operations [Abstract]
Number of full-service banking offices | Office			7

XML

Fair Value Disclosures, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	$ 57,013	$ 41,655
FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	7,044	8,080
FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	43,009	25,277
GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	6,960	8,298
Recurring [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	57,013	41,655
Recurring [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	7,044	8,080
Recurring [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	43,009	25,277
Recurring [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	6,960	8,298
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	57,013	41,655
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	7,044	8,080
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	43,009	25,277
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	6,960	8,298
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

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Stock-Based Compensation, Stock Option Plan (Details) - $ / shares				6 Months Ended
	Jul. 31, 2014	Jan. 31, 2012	Aug. 19, 2010	Dec. 31, 2019	Dec. 23, 2011	Aug. 10, 2005
Stock Options [Member]
Weighted Average Exercise Price [Abstract]
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%
2005 Stock Option Plan [Member]
Stock Option Plans [Abstract]
Aggregate number of shares of common stock reserved for issuance (in shares)						158,868
Termination date				Jun. 08, 2015
Outstanding stock options (in shares)				12,705
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]
Stock Option Plans [Abstract]
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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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, 2018	$ 23	$ 35,057	$ (1,100)	$ (22)	$ 14,125	$ (1,046)	$ 47,037
Net Income	0	0	0	0	2,393	0	2,393
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	163	163
Share Awards Earned	0	135	0	0	0	0	135
RRP Shares Earned	0	0	0	24	0	0	24
Stock Options Vested	0	68	0	0	0	0	68
Common Stock Issuance for Stock Option Exercises	0	198	0	0	0	0	198
ESOP Compensation Earned	0	128	58	0	0	0	186
Company Stock Purchased	0	0	0	0	(1,037)	0	(1,037)
Dividends Declared	0	0	0	0	(529)	0	(529)
Ending Balance at Dec. 31, 2018	23	35,586	(1,042)	2	14,952	(883)	48,638
Beginning Balance at Sep. 30, 2018	23	35,246	(1,071)	2	14,880	(1,121)	47,959
Net Income	0	0	0	0	1,175	0	1,175
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	238	238
Share Awards Earned	0	135	0	0	0	0	135
RRP Shares Earned	0	0	0	0	0	0	0
Stock Options Vested	0	34	0	0	0	0	34
Common Stock Issuance for Stock Option Exercises	0	108	0	0	0	0	108
ESOP Compensation Earned	0	63	29	0	0	0	92
Company Stock Purchased	0	0	0	0	(839)	0	(839)
Dividends Declared	0	0	0	0	(264)	0	(264)
Ending Balance at Dec. 31, 2018	23	35,586	(1,042)	2	14,952	(883)	48,638
Beginning Balance at Jun. 30, 2019	23	35,914	(985)	0	15,370	20	50,342
Net Income	0	0	0	0	1,835	0	1,835
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	(90)	(90)
Share Awards Earned	0	134	0	0	0	0	134
RRP Shares Earned	0	24	0	0	0	0	24
Stock Options Vested	0	69	0	0	0	0	69
Common Stock Issuance for Stock Option Exercises	0	50	0	0	0	0	50
ESOP Compensation Earned	0	136	58	0	0	0	194
Company Stock Purchased	0	0	0	0	(2,005)	0	(2,005)
Dividends Declared	0	0	0	0	(579)	0	(579)
Ending Balance at Dec. 31, 2019	23	36,327	(927)	0	14,621	(70)	49,974
Beginning Balance at Sep. 30, 2019	23	36,043	(956)	0	14,541	86	49,737
Net Income	0	0	0	0	588	0	588
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	(156)	(156)
Share Awards Earned	0	134	0	0	0	0	134
RRP Shares Earned	0	0	0	0	0	0	0
Stock Options Vested	0	34	0	0	0	0	34
Common Stock Issuance for Stock Option Exercises	0	46	0	0	0	0	46
ESOP Compensation Earned	0	70	29	0	0	0	99
Company Stock Purchased	0	0	0	0	(222)	0	(222)
Dividends Declared	0	0	0	0	(286)	0	(286)
Ending Balance at Dec. 31, 2019	$ 23	$ 36,327	$ (927)	$ 0	$ 14,621	$ (70)	$ 49,974

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
ASSETS
Interest-Bearing Deposits with Other Banks	$ 11,180	$ 10,632
Securities Held-to-Maturity, Fair Value	22,682	25,532
Loans Receivable, Allowance for Loan Losses	$ 3,497	$ 3,452
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)	1,792,763	1,845,482
Common Stock, Outstanding (in shares)	1,792,763	1,845,482

XML

Securities (Tables)

6 Months Ended

Dec. 31, 2019

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:

	December 31, 2019
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	7,117	$	34	$	107	$	7,044
FNMA Mortgage-Backed Certificates		42,958		336		285		43,009
GNMA Mortgage-Backed Certificates		7,027		24		91		6,960
Total Debt Securities		57,102		394		483		57,013
Total Securities Available-for-Sale	$	57,102	$	394	$	483	$	57,013
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,121	$	--	$	17	$	1,104
FNMA Mortgage-Backed Certificates		18,369		358		87		18,640
Total Debt Securities		19,490		358		104		19,744
Equity Securities (Non-Marketable)
26,879Shares – Federal Home Loan Bank		2,688		--		--		2,688
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,938		--		--		2,938
Total Securities Held-to-Maturity	$	22,428	$	358	$	104	$	22,682

	June 30, 2019
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	8,168	$	43	$	131	$	8,080
FNMA Mortgage-Backed Certificates		25,071		355		149		25,277
GNMA Mortgage-Backed Certificates		8,390		19		111		8,298
Total Debt Securities		41,629		417		391		41,655
Total Securities Available-for-Sale	$	41,629	$	417	$	391	$	41,655
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,134	$	--	$	18	$	1,116
FNMA Mortgage-Backed Certificates		21,308		338		137		21,509
Total Debt Securities		22,442		338		155		22,625
Equity Securities (Non-Marketable)
26,571Shares – Federal Home Loan Bank		2,657		--		--		2,657
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,907		--		--		2,907
Total Securities Held-to-Maturity	$	25,349	$	338	$	155	$	25,532

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities by contractual maturity at December 31, 2019 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	29	$	30	$	--	$	--
One through Five Years		20,272		20,343		--		--
After Five through Ten Years		32,314		32,020		--		--
Over Ten Years		4,487		4,620		19,490		19,744
		57,102		57,013		19,490		19,744
Other Equity Securities		--		--		2,938		2,938
Total	$	57,102	$	57,013	$	22,428	$	22,682

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 December 31, 2019 and June 30, 2019 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	December 31, 2019
	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Mortgage-Backed Securities	$	178	$	14,048	$	305	$	14,553
Total Securities Available-for-Sale	$	178	$	14,048	$	305	$	14,553

	June 30, 2019
	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Mortgage-Backed Securities	$	--	$	--	$	391	$	19,149
Total Securities Available-for-Sale	$	--	$	--	$	391	$	19,149

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Fair Value Disclosures (Tables)

6 Months Ended

Dec. 31, 2019

Fair Value Disclosures [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

At December 31, 2019 and June 30, 2019, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	December 31, 2019				June 30, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	14,896	$	14,896	$	18,108	$	18,108
Securities Available-for-Sale		57,013		57,013		41,655		41,655
Securities to be Held-to-Maturity		22,428		22,682		25,349		25,532
Loans Held-for-Sale		13,793		13,793		8,608		8,608
Loans Receivable	$	323,568	$	312,100	$	324,134	$	310,812
Financial Liabilities
Deposits	$	401,365	$	385,130	$	388,164	$	368,212
Advances from FHLB		1,209		1,259		1,355		1,246
Off-Balance Sheet Items
Mortgage Loan Commitments	$	8,754	$	8,754	$	8,981	$	8,981

Fair Values of Assets and Liabilities Measured on a Recurring Basis

Fair values of assets and liabilities measured on a recurring basis at December 31, 2019 and June 30, 2019 are as follows:

	Fair Value Measurements Using:
December 31, 2019	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	$	--	$	7,044	$	--	$	7,044
FNMA		--		43,009		--		43,009
GNMA		--		6,960		--		6,960
Total	$	--	$	57,013	$	--	$	57,013

	Fair Value Measurements Using:
June 30, 2019	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	$	--	$	8,080	$	--	$	8,080
FNMA		--		25,277		--		25,277
GNMA		--		8,298		--		8,298
Total	$	--	$	41,655	$	--	$	41,655

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Securities, Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	$ 29
One through Five Years	20,272
After Five through Ten Years	32,314
Over Ten Years	4,487
Amortized Cost	57,102	$ 41,629
Other Equity Securities	0
Amortized Cost	57,102	41,629
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	30
One through Five Years	20,343
After Five through Ten Years	32,020
Over Ten Years	4,620
Fair Value	57,013	41,655
Other Equity Securities	0
Fair Value	57,013	41,655
Cost of available-for-sale securities sold	21,300
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	19,490
Amortized Cost	19,490
Other Equity Securities	2,938
Amortized Cost	22,428	25,349
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	19,744
Fair Value	19,744
Other Equity Securities	2,938
Fair Value	$ 22,682	$ 25,532

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
Other Comprehensive (Loss) Income, Net of Tax
Unrealized Holding Gain (Loss) on Securities Available-for-Sale, Tax	$ 41	$ 24	$ 63	$ 43

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Unaudited) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $11,180 and $10,632 for December 31, 2019 and June 30, 2019, Respectively)	$ 14,896	$ 18,108
Securities Available-for-Sale	57,013	41,655
Securities Held-to-Maturity (Fair Value of $22,682 and $25,532, Respectively)	22,428	25,349
Loans Held-for-Sale	13,793	8,608
Loans Receivable, Net of Allowance for Loan Losses of $3,497 and $3,452, Respectively	323,568	324,134
Accrued Interest Receivable	1,110	1,172
Premises and Equipment, Net	13,249	13,554
Bank Owned Life Insurance	7,019	6,948
Deferred Tax Asset	894	849
Foreclosed Assets	480	1,366
Other Assets	845	710
Total Assets	455,295	442,453
LIABILITIES
Deposits	401,365	388,164
Advances from Borrowers for Taxes and Insurance	272	584
Short-term Federal Home Loan Bank Advances	302	295
Long-term Federal Home Loan Bank Advances	907	1,060
Other Borrowings	1,200	450
Other Accrued Expenses and Liabilities	1,275	1,558
Total Liabilities	405,321	392,111
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; 1,792,763, and 1,845,482 Shares Issued and Outstanding at December 31, 2019 and June 30, 2019, Respectively	23	23
Additional Paid-in Capital	36,327	35,914
Unearned ESOP Stock	(927)	(985)
Retained Earnings	14,621	15,370
Accumulated Other Comprehensive (Loss) Income	(70)	20
Total Stockholders' Equity	49,974	50,342
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 455,295	$ 442,453

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Stock-Based Compensation, Stock Incentive Plans (Details) - USD ($) $ in Thousands				6 Months Ended
	Nov. 13, 2019	Oct. 26, 2015	Nov. 12, 2014	Dec. 31, 2019	Dec. 31, 2018	Feb. 05, 2019
Stock Options [Member]
Stock Incentive Plans [Abstract]
Award vesting period				5 years
Compensation expense				$ 69	$ 68
2014 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Number of shares authorized under plan (in shares)			150,000
Award vesting period				5 years
2014 Stock Incentive Plan [Member] | Share Awards [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares of common stock subject to award (in shares)						3,000
Granted (in shares)		34,500
2014 Stock Incentive Plan [Member] | Share Awards [Member] | Maximum [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares of common stock subject to award (in shares)			37,500
Percentage of shares available for grant			25.00%
2014 Stock Incentive Plan [Member] | Stock Options [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares of common stock subject to award (in shares)						13,500
Aggregate number of shares of common stock reserved for issuance (in shares)			112,500
Granted (in shares)		103,500
Award vesting period				5 years
2011 Recognition Plan and 2014 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Compensation expense				$ 158	$ 159
2019 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Number of shares authorized under plan (in shares)	125,000
2019 Stock Incentive Plan [Member] | Share Awards [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares of common stock subject to award (in shares)				0
Granted (in shares)				0
2019 Stock Incentive Plan [Member] | Share Awards [Member] | Maximum [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares of common stock subject to award (in shares)	31,250
Percentage of shares available for grant	25.00%
2019 Stock Incentive Plan [Member] | Stock Options [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares of common stock subject to award (in shares)				0
Aggregate number of shares of common stock reserved for issuance (in shares)	93,750
Granted (in shares)				0

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Stock-Based Compensation, Recognition and Retention Plan (Details) - $ / shares		6 Months Ended
	Jul. 31, 2019	Dec. 31, 2019	Jul. 31, 2014
2011 Recognition and Retention Plan [Member]
Recognition and Retention Plans [Abstract]
Aggregate number of shares of common stock (in shares)	77,808	0
Vested (in shares)	77,808
Recognition Plan [Member]
Recognition and Retention Plans [Abstract]
Share price (in dollars per share)			$ 18.92
Award vesting period		5 years

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Loans Receivable, Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	$ 6,898	$ 7,412
Recorded Investment With No Allowance	832	4,102
Recorded Investment With Allowance	6,066	3,310
Total Recorded Investment	6,898	7,412
Related Allowance	446	238
Average Recorded Investment	6,931	7,962
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	326	469
Recorded Investment With No Allowance	326	469
Recorded Investment With Allowance	0	0
Total Recorded Investment	326	469
Related Allowance	0	0
Average Recorded Investment	328	474
Real Estate Loans [Member] | Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	3,085	3,310
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	3,085	3,310
Total Recorded Investment	3,085	3,310
Related Allowance	13	238
Average Recorded Investment	3,116	3,877
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	2,981	2,980
Recorded Investment With No Allowance	0	2,980
Recorded Investment With Allowance	2,981	0
Total Recorded Investment	2,981	2,980
Related Allowance	433	0
Average Recorded Investment	2,981	2,951
Real Estate Loans [Member] | Construction [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	30
Recorded Investment With No Allowance	0	30
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	30
Related Allowance	0	0
Average Recorded Investment	0	30
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	506	623
Recorded Investment With No Allowance	506	623
Recorded Investment With Allowance	0	0
Total Recorded Investment	506	623
Related Allowance	0	0
Average Recorded Investment	506	630
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, Analysis of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
Summary of changes in the allowance for loan losses [Roll Forward]
Beginning Balances			$ 3,452	$ 3,425	$ 3,425
Provision for Loan Losses	$ 950	$ 100	1,125	350	600
Loan Charge-Offs			(1,084)	(297)	(586)
Recoveries			4	1	13
Ending Balances	$ 3,497	$ 3,479	$ 3,497	$ 3,479	$ 3,452

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Deposits

6 Months Ended

Dec. 31, 2019

Deposits [Abstract]

Deposits

4. Deposits

Deposits at December 31, 2019 and June 30, 2019 consist of the following classifications:

	December 31, 2019		June 30, 2019
	(In Thousands)
Non-Interest Bearing	$	65,066	$	59,351
NOW Accounts		33,777		31,045
Money Markets		71,820		74,934
Passbook Savings		63,506		39,569
		234,169		204,899
Certificates of Deposit		167,196		183,265
Total Deposits	$	401,365	$	388,164

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Fair Value Disclosures

6 Months Ended

Dec. 31, 2019

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 December 31, 2019 and June 30, 2019, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	December 31, 2019				June 30, 2019
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	14,896	$	14,896	$	18,108	$	18,108
Securities Available-for-Sale		57,013		57,013		41,655		41,655
Securities to be Held-to-Maturity		22,428		22,682		25,349		25,532
Loans Held-for-Sale		13,793		13,793		8,608		8,608
Loans Receivable	$	323,568	$	312,100	$	324,134	$	310,812
Financial Liabilities
Deposits	$	401,365	$	385,130	$	388,164	$	368,212
Advances from FHLB		1,209		1,259		1,355		1,246
Off-Balance Sheet Items
Mortgage Loan Commitments	$	8,754	$	8,754	$	8,981	$	8,981

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 six months ended December 31, 2019.

Fair values of assets and liabilities measured on a recurring basis at December 31, 2019 and June 30, 2019 are as follows:

	Fair Value Measurements Using:
December 31, 2019	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	$	--	$	7,044	$	--	$	7,044
FNMA		--		43,009		--		43,009
GNMA		--		6,960		--		6,960
Total	$	--	$	57,013	$	--	$	57,013

	Fair Value Measurements Using:
June 30, 2019	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	$	--	$	8,080	$	--	$	8,080
FNMA		--		25,277		--		25,277
GNMA		--		8,298		--		8,298
Total	$	--	$	41,655	$	--	$	41,655

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Deposits (Tables)

6 Months Ended

Dec. 31, 2019

Deposits [Abstract]

Deposits

Deposits at December 31, 2019 and June 30, 2019 consist of the following classifications:

	December 31, 2019		June 30, 2019
	(In Thousands)
Non-Interest Bearing	$	65,066	$	59,351
NOW Accounts		33,777		31,045
Money Markets		71,820		74,934
Passbook Savings		63,506		39,569
		234,169		204,899
Certificates of Deposit		167,196		183,265
Total Deposits	$	401,365	$	388,164

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Securities, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 57,102	$ 41,629
Gross Unrealized Gains	394	417
Gross Unrealized Losses	483	391
Fair Value	57,013	41,655
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	57,102	41,629
Gross Unrealized Gains	394	417
Gross Unrealized Losses	483	391
Fair value	57,013	41,655
FHLMC Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	7,117	8,168
Gross Unrealized Gains	34	43
Gross Unrealized Losses	107	131
Fair Value	7,044	8,080
FNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	42,958	25,071
Gross Unrealized Gains	336	355
Gross Unrealized Losses	285	149
Fair Value	43,009	25,277
GNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	7,027	8,390
Gross Unrealized Gains	24	19
Gross Unrealized Losses	91	111
Fair Value	$ 6,960	$ 8,298

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
INTEREST INCOME
Loans, Including Fees	$ 4,632	$ 4,569	$ 9,284	$ 9,063
Investment Securities	15	15	31	29
Mortgage-Backed Securities	427	318	817	616
Other Interest-Earning Assets	88	94	198	174
Total Interest Income	5,162	4,996	10,330	9,882
INTEREST EXPENSE
Deposits	1,360	1,030	2,695	1,959
Other Borrowings	13	3	17	4
Federal Home Loan Bank Borrowings	14	42	30	110
Total Interest Expense	1,387	1,075	2,742	2,073
Net Interest Income	3,775	3,921	7,588	7,809
PROVISION FOR LOAN LOSSES	950	100	1,125	350
Net Interest Income after Provision for Loan Losses	2,825	3,821	6,463	7,459
NON-INTEREST INCOME
Gain on Sale of Loans	580	374	1,147	766
Gain (Loss) on Sale of Real Estate and Fixed Assets	0	(230)	80	(228)
Income on Bank Owned Life Insurance	35	35	71	70
Service Charges on Deposit Accounts	291	238	564	465
Other Income	11	22	20	35
Total Non-Interest Income	917	439	1,882	1,108
NON-INTEREST EXPENSE
Compensation and Benefits	1,890	1,547	3,696	3,163
Occupancy and Equipment	356	329	728	649
Data Processing	131	147	291	297
Audit and Examination Fees	57	73	114	127
Franchise and Bank Shares Tax	122	97	237	197
Advertising	65	84	212	142
Legal Fees	153	158	262	297
Loan and Collection	50	64	169	126
Deposit Insurance Premium	0	22	0	52
Valuation Adjustment Real Estate Owned	0	0	0	75
Other Expense	183	201	375	372
Total Non-Interest Expense	3,007	2,722	6,084	5,497
Income Before Income Taxes	735	1,538	2,261	3,070
PROVISION FOR INCOME TAX EXPENSE	147	363	426	677
Net Income	$ 588	$ 1,175	$ 1,835	$ 2,393
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.35	$ 0.66	$ 1.07	$ 1.34
Diluted (in dollars per share)	0.32	0.62	1.00	1.25
DIVIDENDS DECLARED (in dollars per share)	$ 0.16	$ 0.14	$ 0.32	$ 0.28

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended		12 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018	Jun. 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 588	$ 1,175	$ 1,835	$ 2,393
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities
Bad Debt Recovery			5	1
Federal Home Loan Bank stock certificate			31	29
Net Amortization and Accretion on Securities			51	57
(Gain) Loss on Sale of Real Estate			(80)	228
Gain on Sale of Loans	(580)	(374)	(1,147)	(766)
Amortization of Deferred Loan Fees			(76)	(97)
Depreciation of Premises and Equipment			323	241
ESOP Expense			194	186
Stock Option Expense			69	68
Recognition and Retention Plan Expense			2	14
Deferred Income Tax			(45)	(26)
Valuation Adjustment Real Estate Owned			0	75
Provision for Loan Losses	950	100	1,125	350	$ 600
Increase in Cash Surrender Value on Bank Owned Life Insurance	(35)	(35)	(71)	(70)
Share Awards Expense			74	68
Changes in Assets and Liabilities:
Loans Held-for-Sale - Originations and Purchases			(50,982)	(28,395)
Loans Held-for-Sale - Sale and Principal Repayments			46,944	32,065
Accrued Interest Receivable			62	(18)
Other Operating Assets			(135)	253
Other Operating Liabilities			(283)	(442)
Net Cash (Used in) Provided by Operating Activities			(2,104)	6,214
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections			121	(4,675)
Deferred Loan Fees Collected			107	85
Acquisition of Premises and Equipment			(653)	(1,923)
Proceeds from Sale of Real Estate			796	536
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities			5,735	3,369
Purchases of Securities			(21,250)	(12,522)
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities			2,943	2,396
Purchases of Securities			0	0
Net Cash Used in Investing Activities			(12,201)	(12,734)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits			13,201	13,147
Repayments of Advances from Federal Home Loan Bank			(146)	(10,140)
Repayment of Other Borrowings			(450)	(300)
Net Decrease in Advances from Borrowers for Taxes and Insurance			(312)	(397)
Dividends Paid			(579)	(529)
Company Stock Purchased			(2,005)	(1,037)
Proceeds from Stock Options Exercised			50	198
Proceeds from Other Bank Borrowings			1,200	450
Plan Share Distributions			134	135
Net Cash Provided by Financing Activities			11,093	1,527
NET DECREASE IN CASH AND CASH EQUIVALENTS			(3,212)	(4,993)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			18,108	15,867	15,867
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 14,896	$ 10,874	14,896	10,874	$ 18,108
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds			1,887	1,403
Income Taxes Paid			580	787
Market Value Adjustment for Gain (Loss) on Securities Available-for-Sale			$ (115)	$ 206

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Fair Value Disclosures (Details) - USD ($) $ in Thousands	6 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
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	$ 57,013	$ 41,655
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	14,896	18,108
Securities Available-for-Sale	57,013	41,655
Securities to be Held-to-Maturity	22,428	25,349
Loans Held-for-Sale	13,793	8,608
Loans Receivable	323,568	324,134
Financial Liabilities [Abstract]
Deposits	401,365	388,164
Advances from FHLB	1,209	1,355
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	14,896	18,108
Securities Available-for-Sale	57,013	41,655
Securities to be Held-to-Maturity	22,682	25,532
Loans Held-for-Sale	13,793	8,608
Loans Receivable	312,100	310,812
Financial Liabilities [Abstract]
Deposits	385,130	368,212
Advances from FHLB	1,259	1,246
Mortgage Loan Commitments [Member] | Carrying Value [Member]
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	8,754	8,981
Mortgage Loan Commitments [Member] | Estimated Fair Value [Member]
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 8,754	$ 8,981

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Summary of Accounting Policies (Policies)

6 Months Ended

Dec. 31, 2019

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 six month period ended December 31, 2019 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2020.

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 December 31, 2019.  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 seven 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 December 31, 2019, 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 basis 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 $212,000 and $142,000 for the six months ended December 31, 2019 and 2018, 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 six months ended December 31, 2019 and 2018, 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, plan share awards 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, plan share awards 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, plan share awards or recognition and retention awards.

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 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.  In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities.  The amendments in this Update include items brought to the FASB Board’s attention regarding ASU 2016-01.

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 did not 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 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 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 extent of the impact upon adoption is not known and will depend on the characteristics of the Company’s portfolio and economic conditions on that date as well as forecasted conditions thereafter.

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 adoption of this guidance is not expected to have a material effect on the Company’s 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 adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In November 2017, the FASB issued ASU 2017-14, Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) (SEC Update).  This Update adds, amends, and supersedes SEC paragraphs of the ASC pursuant to Staff Accounting Bulletin No. 116 and SEC Release 33-10403.  This ASU was effective upon issuance.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220):  Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  On December 22, 2017, the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.  Consequently, the amendments in this Update eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financials statement users.  However, because the amendments in this Update only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected.  The amendments in this Update are affective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption of this Update is permitted, including adoption in any interim period (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance.  The amendments in this Update should be applied either in the period of adoption or 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 is recognized. We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In May 2018, the FASB issued ASU 2018-06, Codification Improvements to Topic 942, Financial Services – Depository and Lending.  The amendments in this Update supersede the guidance in Subtopic 942-740, Financial Services – Depository and Lending – Income Taxes, that is related to Circular 202 because that guidance has been rescinded by the Office of the Comptroller of the Currency (OCC) and is no longer relevant.  This ASU was effective upon issuance.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718):  Improvements to Nonemployee Share-Based Payment Accounting.  Topic 718 improves several areas of nonemployee share-based payment accounting.  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.  Early adoption is permitted, but no earlier than an entity’s adoption on Topic 606.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.”  The ASU removes, modifies, and adds certain disclosure requirements for fair value measurements.  ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019.  In addition, entities may early adopt the modified or eliminated disclosure requirements and delay adoption of the additional disclosure requirements until effective date.  The Company is currently assessing the impact of adoption of this guidance upon its disclosures.  ASU No. 2018-13 will not impact our consolidated financial statements, as the update only revises disclosure requirements.

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Securities

6 Months Ended

Dec. 31, 2019

Securities [Abstract]

Securities

2. Securities

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

	December 31, 2019
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	7,117	$	34	$	107	$	7,044
FNMA Mortgage-Backed Certificates		42,958		336		285		43,009
GNMA Mortgage-Backed Certificates		7,027		24		91		6,960
Total Debt Securities		57,102		394		483		57,013
Total Securities Available-for-Sale	$	57,102	$	394	$	483	$	57,013
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,121	$	--	$	17	$	1,104
FNMA Mortgage-Backed Certificates		18,369		358		87		18,640
Total Debt Securities		19,490		358		104		19,744
Equity Securities (Non-Marketable)
26,879Shares – Federal Home Loan Bank		2,688		--		--		2,688
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,938		--		--		2,938
Total Securities Held-to-Maturity	$	22,428	$	358	$	104	$	22,682

	June 30, 2019
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	8,168	$	43	$	131	$	8,080
FNMA Mortgage-Backed Certificates		25,071		355		149		25,277
GNMA Mortgage-Backed Certificates		8,390		19		111		8,298
Total Debt Securities		41,629		417		391		41,655
Total Securities Available-for-Sale	$	41,629	$	417	$	391	$	41,655
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	1,134	$	--	$	18	$	1,116
FNMA Mortgage-Backed Certificates		21,308		338		137		21,509
Total Debt Securities		22,442		338		155		22,625
Equity Securities (Non-Marketable)
26,571Shares – Federal Home Loan Bank		2,657		--		--		2,657
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,907		--		--		2,907
Total Securities Held-to-Maturity	$	25,349	$	338	$	155	$	25,532

The amortized cost and fair value of securities by contractual maturity at December 31, 2019 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	29	$	30	$	--	$	--
One through Five Years		20,272		20,343		--		--
After Five through Ten Years		32,314		32,020		--		--
Over Ten Years		4,487		4,620		19,490		19,744
		57,102		57,013		19,490		19,744
Other Equity Securities		--		--		2,938		2,938
Total	$	57,102	$	57,013	$	22,428	$	22,682

Securities available-for-sale totaling $21.3 million were purchased during the six months ending December 31, 2019.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at December 31, 2019 and June 30, 2019 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	December 31, 2019
	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Mortgage-Backed Securities	$	178	$	14,048	$	305	$	14,553
Total Securities Available-for-Sale	$	178	$	14,048	$	305	$	14,553

	June 30, 2019
	Less Than Twelve Months				Over Twelve Months
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
Securities Available-for-Sale
Mortgage-Backed Securities	$	--	$	--	$	391	$	19,149
Total Securities Available-for-Sale	$	--	$	--	$	391	$	19,149

The unrealized losses on the Company’s investment in mortgage-backed securities at December 31, 2019 and June 30, 2019 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 December 31, 2019.

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 December 31, 2019 and June 30, 2019, securities with a carrying value of $1.9 million and $2.3 million, respectively, were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $161.4 million and $152.2 million, respectively, were pledged to secure FHLB advances.

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Stock-Based Compensation

6 Months Ended

Dec. 31, 2019

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 vested as of July 31, 2019 such that there are no shares remaining in the Recognition Plan.

The cost associated with the Recognition Plan is based on the share price of $18.92 on July 31, 2014, which represents the fair market price of the Company’s stock on the date on which the Recognition Plan shares were granted. The cost of the Recognition Plan was recognized over the five year vesting period.

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).  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, the 12,705 outstanding options as of December 31, 2019 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 December 31, 2019, there were 389 stock options available for future grant under the 2011 Option Plan.

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.

Stock Incentive Plans

On November 12, 2014, the shareholders of the Company approved the adoption of the Company’s 2014 Stock Incentive Plan (the “2014 Stock Incentive Plan”) for the benefit of employees and non-employee directors as an incentive to contribute to the success of the Company and reward employees for outstanding performance and the attainment of targeted goals.  The 2014 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 2014 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. On February 5, 2019, the Company granted a total of 3,000 plan share awards and 13,500 stock options to key employees vesting ratably over five years. The 2014 Stock Incentive Plan cost is recognized over the five year vesting period.

On November 13, 2019, the shareholders of the Company approved the adoption of the Company’s 2019 Stock Incentive Plan (the “2019 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 2019 Stock Incentive Plan covers a total of 125,000 shares, of which no more than 31,250 shares, or 25% of the plan, may be share rewards.  The balance of the plan is reserved for stock option awards which would total 93,750 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.  As of December 31, 2019, there were no outstanding plan share awards or stock options granted pursuant to the 2019 Stock Incentive Plan.

Compensation expense pertaining to the 2011 Recognition Plan and the share awards under the 2014 Stock Incentive Plan was approximately $158,000 and $159,000 for the six months ended December 31, 2019 and 2018, respectively. For the six months ended December 31, 2019 and 2018, compensation expense charged to operations for stock options granted under the Option Plan and the 2014 Stock Incentive Plan was $69,000 and $68,000, respectively.

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Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Summary of Deposits [Abstract]
Non-Interest Bearing	$ 65,066	$ 59,351
NOW Accounts	33,777	31,045
Money Markets	71,820	74,934
Passbook Savings	63,506	39,569
Deposits in transaction accounts	234,169	204,899
Certificates of Deposit	167,196	183,265
Total Deposits	$ 401,365	$ 388,164

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Loans Receivable, Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	6 Months Ended	12 Months Ended
	Dec. 31, 2019	Jun. 30, 2019
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	$ 6,544	$ 6,880
Current	320,726	320,880
Total Loans Receivable	327,270	327,760
Recorded Investment > 90 Days and Accruing	559	469
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	341	274
30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,311	2,324
60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,519	764
90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	3,714	3,792
Real Estate Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans Receivable	291,233	291,002
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	3,241	3,515
Current	111,840	115,430
Total Loans Receivable	115,081	118,945
Recorded Investment > 90 Days and Accruing	510	420
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	1,246	2,204
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	1,311	715
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	684	596
Real Estate Loans [Member] | Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	87,939	83,397
Total Loans Receivable	87,939	83,397
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	0
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] | 90 Days or More [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	42,427	46,171
Total Loans Receivable	42,427	46,171
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] | 90 Days or More [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	3,027	2,981
Current	14,357	13,125
Total Loans Receivable	17,384	16,106
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	46	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] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	2,981	2,981
Real Estate Loans [Member] | Construction [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	12,936	9,502
Total Loans Receivable	12,936	9,502
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] | 90 Days or More [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	0	120
Current	1,294	1,142
Total Loans Receivable	1,294	1,262
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	0	120
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] | 90 Days or More [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	227	49
Current	13,945	15,570
Total Loans Receivable	14,172	15,619
Recorded Investment > 90 Days and Accruing	0	0
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	19	0
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	208	49
Real Estate Loans [Member] | Equity Lines of Credit [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Commercial Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	49	215
Current	35,328	35,775
Total Loans Receivable	35,377	35,990
Recorded Investment > 90 Days and Accruing	49	49
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] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	49	215
Consumer Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	660	768
Total Loans Receivable	660	768
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] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	$ 0	$ 0

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Loans Receivable

6 Months Ended

Dec. 31, 2019

Loans Receivable [Abstract]

Loans Receivable

3. Loans Receivable

Loans receivable are summarized as follows:

	December 31, 2019			June 30, 2019
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	115,081		$	118,945
Commercial		87,939			83,397
Multi-Family Residential		42,427			46,171
Land		17,384			16,106
Construction		12,936			9,502
Equity and Second Mortgage		1,294			1,262
Equity Lines of Credit		14,172			15,619
Total Mortgage Loans		291,233			291,002
Commercial Loans		35,377			35,990
Consumer Loans
Loans on Savings Accounts		385			439
Other Consumer Loans		275			329
Total Consumer Loans		660			768
Total Loans		327,270			327,760
Less:   Allowance for Loan Losses		(3,497	)		(3,452	)
Unamortized Loan Fees		(205	)		(174	)
Net Loans Receivable	$	323,568		$	324,134

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

	Six Months Ended December 31,
	2019			2018
	(In Thousands)
Balance - Beginning of Period	$	3,452		$	3,425
Provision for Loan Losses		1,125			350
Loan Charge-Offs		(1,084	)		(297	)
Recoveries		4			1
Balance - End of Period	$	3,497		$	3,479

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 December 31, 2019 and June 30, 2019:

December 31, 2019	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	114,388	$	366	$	327	$	--	$	115,081
Commercial		84,854		--		3,085		--		87,939
Multi-Family Residential		42,427		--		--		--		42,427
Land		14,404		--		2,980		--		17,384
Construction		12,936		--		--		--		12,936
Equity and Second Mortgage		1,294		--		--		--		1,294
Equity Lines of Credit		14,172		--		--		--		14,172
Commercial Loans		34,871		--		506		--		35,377
Consumer Loans		660		--		--		--		660
Total	$	320,006	$	366	$	6,898	$	--	$	327,270

June 30, 2019	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	118,459	$	17	$	469	$	--	$	118,945
Commercial		80,087		--		3,310		--		83,397
Multi-Family Residential		46,171		--		--		--		46,171
Land		13,126		--		2,980		--		16,106
Construction		9,502		--		--		--		9,502
Equity and Second Mortgage		1,168		64		30		--		1,262
Equity Lines of Credit		15,619		--		--		--		15,619
Commercial Loans		35,367		--		623		--		35,990
Consumer Loans		768		--		--		--		768
Total	$	320,267	$	81	$	7,412	$	--	$	327,760

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

The following tables present an aging analysis of past due loans, segregated by class of loans, as of December 31, 2019 and June 30, 2019:

December 31, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment  > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,246	$	1,311	$	684	$	3,241	$	111,840	$	115,081	$	510
Commercial		--		--		--		--		87,939		87,939		--
Multi-Family Residential		--		--		--		--		42,427		42,427		--
Land		46		--		2,981		3,027		14,357		17,384		--
Construction		--		--		--		--		12,936		12,936		--
Equity and Second Mortgage		--		--		--		--		1,294		1,294		--
Equity Lines of Credit		19		208		--		227		13,945		14,172		--
Commercial Loans		--		--		49		49		35,328		35,377		49
Consumer Loans		--		--		--		--		660		660		--
Total	$	1,311	$	1,519	$	3,714	$	6,544	$	320,726	$	327,270	$	559

June 30, 2019	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,204	$	715	$	596	$	3,515	$	115,430	$	118,945	$	420
Commercial		--		--		--		--		83,397		83,397		--
Multi-Family Residential		--		--		--		--		46,171		46,171		--
Land		--		--		2,981		2,981		13,125		16,106		--
Construction		--		--		--		--		9,502		9,502		--
Equity and Second Mortgage		120		--		--		120		1,142		1,262		--
Equity Lines of Credit		--		49		--		49		15,570		15,619		--
Commercial Loans		--		--		215		215		35,775		35,990		49
Consumer Loans		--		--		--		--		768		768		--
Total	$	2,324	$	764	$	3,792	$	6,880	$	320,880	$	327,760	$	469

There was no interest income recognized on non-accrual loans during the six months ended December 31, 2019 or year ended June 30, 2019. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the six months ended December 31, 2019 and the year ended June 30, 2019 was approximately $341,000 and $274,000, respectively.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the six months ended December 31, 2019 and year ended June 30, 2019 was as follows:

	Real Estate Loans
December 31, 2019	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	$	1,017		$	508	$	338		$	100	$	115	$	144		$	1,227		$	3	$	3,452
Charge-Offs		(39	)		--		--			--		--		--			(1,045	)		--		(1,084	)
Recoveries		--			--		--			--		--		4			--			--		4
Current Provision		7			67		(12	)		469		12		(17	)		599			--		1,125
Ending Balances	$	985		$	575	$	326		$	569	$	127	$	131		$	781		$	3	$	3,497
Evaluated for Impairment:
Individually		--			13		--			433		--		--			--			--		446
Collectively		985			562		326			136		127		131			781			3		3,051
Loans Receivable:
Ending Balances – Total	$	115,081		$	87,939	$	42,427		$	17,384	$	12,936	$	15,466		$	35,377		$	660	$	327,270
Ending Balances:
Evaluated for Impairment:
Individually		326			3,085		--			2,981		--		--			506			--		6,898
Collectively	$	114,755		$	84,854	$	42,427		$	14,403	$	12,936	$	15,466		$	34,871		$	660	$	320,372

	Real Estate Loans
June 30, 2019	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	$	1,166		$	436	$	256	$	161		$	163		$	311		$	929	$	3	$	3,425
Charge-Offs		(277	)		--		--		(289	)		--			(20	)		--		--		(586	)
Recoveries		--			--		--		--			--			13			--		--		13
Current Provision		128			72		82		228			(48	)		(160	)		298		--		600
Ending Balances	$	1,017		$	508	$	338	$	100		$	115		$	144		$	1,227	$	3	$	3,452
Evaluated for Impairment:
Individually		--			238		--		--			--			--			--		--		238
Collectively		1,017			270		338		100			115			144			1,227		3		3,214
Loans Receivable:
Ending Balances - Total	$	118,945		$	83,397	$	46,171	$	16,106		$	9,502		$	16,881		$	35,990	$	768	$	327,760
Ending Balances:
Evaluated for Impairment:
Individually		469			3,310		--		2,980			--			30			623		--		7,412
Collectively	$	118,476		$	80,087	$	46,171	$	13,126		$	9,502		$	16,851		$	35,367	$	768	$	320,348

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of December 31, 2019 and June 30, 2019:

December 31, 2019	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	$	326	$	326	$	--	$	326	$	--	$	328
Commercial		3,085		--		3,085		3,085		13		3,116
Multi-Family Residential		--		--		--		--		--		--
Land		2,981		--		2,981		2,981		433		2,981
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		506		506		--		506		--		506
Consumer Loans		--		--		--		--		--		--
Total	$	6,898	$	832	$	6,066	$	6,898	$	446	$	6,931

June 30, 2019	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	$	469	$	469	$	--	$	469	$	--	$	474
Commercial		3,310		--		3,310		3,310		238		3,877
Multi-Family Residential		--		--		--		--		--		--
Land		2,980		2,980		--		2,980		--		2,951
Construction		--		--		--		--		--		--
Equity and Second Mortgage		30		30		--		30		--		30
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		623		623		--		623		--		630
Consumer Loans		--		--		--		--		--		--
Total	$	7,412	$	4,102	$	3,310	$	7,412	$	238	$	7,962

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):

	December 31, 2019
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	457		$	--		$	--		$	457
1-4 Family Residential			76			--			--			76
Commercial real estate			3,085			--			--			3,085

	June 30, 2019
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	457		$	122		$	122		$	579
1-4 Family Residential			76			--			--			76
Commercial real estate			3,310			--			--			3,310

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 December 31, 2019, 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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Related Party Transactions

6 Months Ended

Dec. 31, 2019

Related Party Transactions [Abstract]

Related Party Transactions

7. Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $2.8 million and $2.8 million at December 31, 2019 and June 30, 2019, respectively.

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Summary of Accounting Policies (Tables)

6 Months Ended

Dec. 31, 2019

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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Loans Receivable, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Troubled Debt Restructurings [Abstract]
Commitments to loan additional funds to borrowers whose loans were previously in non-accrual status	$ 0
Commercial Business Loans [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	457	$ 579
Commercial Business Loans [Member] | Nonaccrual [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	0	122
Commercial Business Loans [Member] | Current [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	457	457
Commercial Business Loans [Member] | Past Due Greater than 30 Days [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	0	122
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	76	76
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Nonaccrual [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	0	0
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Current [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	76	76
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Past Due Greater than 30 Days [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	0	0
Real Estate Loans [Member] | Commercial Real Estate [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	3,085	3,310
Real Estate Loans [Member] | Commercial Real Estate [Member] | Nonaccrual [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	0	0
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	3,085	3,310
Real Estate Loans [Member] | Commercial Real Estate [Member] | Past Due Greater than 30 Days [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	$ 0	$ 0

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Loans Receivable, Grading of Loans, Segregated by Class of Loans (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	$ 327,270	$ 327,760
Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	320,006	320,267
Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	366	81
Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	6,898	7,412
Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	291,233	291,002
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	115,081	118,945
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	114,388	118,459
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	366	17
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	327	469
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Commercial [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	87,939	83,397
Real Estate Loans [Member] | Commercial [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	84,854	80,087
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	3,085	3,310
Real Estate Loans [Member] | Commercial [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	42,427	46,171
Real Estate Loans [Member] | Multi-Family Residential [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	42,427	46,171
Real Estate Loans [Member] | Multi-Family Residential [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Land [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	17,384	16,106
Real Estate Loans [Member] | Land [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	14,404	13,126
Real Estate Loans [Member] | Land [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Land [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	2,980	2,980
Real Estate Loans [Member] | Land [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Construction [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	12,936	9,502
Real Estate Loans [Member] | Construction [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	12,936	9,502
Real Estate Loans [Member] | Construction [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Construction [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Construction [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,294	1,262
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,294	1,168
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	64
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	30
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	14,172	15,619
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	14,172	15,619
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Commercial Loans [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	35,377	35,990
Commercial Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	34,871	35,367
Commercial Loans [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Commercial Loans [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	506	623
Commercial Loans [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Consumer Loans [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	660	768
Consumer Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	660	768
Consumer Loans [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Consumer Loans [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
Consumer Loans [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	$ 0	$ 0

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Earnings Per Share (Tables)

6 Months Ended

Dec. 31, 2019

Earnings Per Share [Abstract]

Calculation of Earnings per Share

Earnings per share for the three months and six months ended December 31, 2019 and 2018 were calculated as follows:

	Three Months Ended December 31,				Six Months Ended December 31,
	2019		2018		2019		2018
	(In Thousands, Except Per Share Data)
Net income	$	588	$	1,175	$	1,835	$	2,393
Weighted average shares outstanding – basic		1,699		1,776		1,707		1,782
Effect of dilutive common stock equivalents		133		126		129		131
Adjusted weighted average shares outstanding – diluted		1,832		1,902		1,836		1,913
Basic earnings per share	$	0.35	$	0.66	$	1.07	$	1.34
Diluted earnings per share	$	0.32	$	0.62	$	1.00	$	1.25

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 December 31,						Six Months Ended December 31,
	2019			2018			2019			2018
	(In Thousands)
Average common shares issued		3,062			3,062			3,062			3,062
Average unearned ESOP shares		(94	)		(105	)		(95	)		(107	)
Average unearned RRP shares		--			(2	)		(1	)		(1	)
Average Company stock purchased		(1,269	)		(1,179	)		(1,259	)		(1,172	)
Weighted average shares outstanding		1,699			1,776			1,707			1,782

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Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Dec. 31, 2019	Jun. 30, 2019
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 22,428	$ 25,349
Gross Unrealized Gains	358	338
Gross Unrealized Losses	104	155
Fair Value	22,682	25,532
Debt Securities [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	19,490	22,442
Gross Unrealized Gains	358	338
Gross Unrealized Losses	104	155
Fair Value	19,744	22,625
GNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,121	1,134
Gross Unrealized Gains	0	0
Gross Unrealized Losses	17	18
Fair Value	1,104	1,116
FNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	18,369	21,308
Gross Unrealized Gains	358	338
Gross Unrealized Losses	87	137
Fair Value	18,640	21,509
Equity Securities (Non-Marketable) [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	2,938	2,907
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	2,938	2,907
Federal Home Loan Bank [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	2,688	2,657
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 2,688	$ 2,657
Number of equity securities (in shares)	26,879	26,571
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

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Summary of Accounting Policies

6 Months Ended

Dec. 31, 2019

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 six month period ended December 31, 2019 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2020.

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 December 31, 2019.  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 seven 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 December 31, 2019, 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 basis 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 $212,000 and $142,000 for the six months ended December 31, 2019 and 2018, 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 six months ended December 31, 2019 and 2018, 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, plan share awards 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, plan share awards 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, plan share awards or recognition and retention awards.

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 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.  In February 2018, the FASB issued ASU 2018-03, Technical Corrections and Improvements to Financial Instruments – Overall (Subtopic 825-10):  Recognition and Measurement of Financial Assets and Financial Liabilities.  The amendments in this Update include items brought to the FASB Board’s attention regarding ASU 2016-01.

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 did not 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 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 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 extent of the impact upon adoption is not known and will depend on the characteristics of the Company’s portfolio and economic conditions on that date as well as forecasted conditions thereafter.

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 adoption of this guidance is not expected to have a material effect on the Company’s 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 adoption of this guidance is not expected to have a material effect on the Company’s consolidated financial statements.

In November 2017, the FASB issued ASU 2017-14, Income Statement – Reporting Comprehensive Income (Topic 220), Revenue Recognition (Topic 605), and Revenue from Contracts with Customers (Topic 606) (SEC Update).  This Update adds, amends, and supersedes SEC paragraphs of the ASC pursuant to Staff Accounting Bulletin No. 116 and SEC Release 33-10403.  This ASU was effective upon issuance.

In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220):  Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.  On December 22, 2017, the U.S. federal government enacted a tax bill, H.R.1, An Act to Provide for Reconciliation Pursuant to Titles II and V of the Concurrent Resolution on the Budget for Fiscal Year 2018 (Tax Cuts and Jobs Act). The amendments in this Update allow a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Cuts and Jobs Act.  Consequently, the amendments in this Update eliminate the stranded tax effects resulting from the Tax Cuts and Jobs Act and will improve the usefulness of information reported to financials statement users.  However, because the amendments in this Update only relate to the reclassification of the income tax effects of the Tax Cuts and Jobs Act, the underlying guidance that requires that the effect of a change in tax laws or rates be included in income from continuing operations is not affected.  The amendments in this Update are affective for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years.  Early adoption of this Update is permitted, including adoption in any interim period (1) for public business entities for reporting periods for which financial statements have not yet been issued and (2) for all other entities for reporting periods for which financial statements have not yet been made available for issuance.  The amendments in this Update should be applied either in the period of adoption or 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 is recognized. We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In May 2018, the FASB issued ASU 2018-06, Codification Improvements to Topic 942, Financial Services – Depository and Lending.  The amendments in this Update supersede the guidance in Subtopic 942-740, Financial Services – Depository and Lending – Income Taxes, that is related to Circular 202 because that guidance has been rescinded by the Office of the Comptroller of the Currency (OCC) and is no longer relevant.  This ASU was effective upon issuance.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In June 2018, the FASB issued ASU 2018-07, Compensation – Stock Compensation (Topic 718):  Improvements to Nonemployee Share-Based Payment Accounting.  Topic 718 improves several areas of nonemployee share-based payment accounting.  The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2018, including interim periods within that fiscal year.  Early adoption is permitted, but no earlier than an entity’s adoption on Topic 606.  We do not expect the adoption of this ASU to have a material effect on our consolidated financial statements.

In August 2018, the FASB issued ASU No. 2018-13, “Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurement.”  The ASU removes, modifies, and adds certain disclosure requirements for fair value measurements.  ASU No. 2018-13 is effective for interim and annual reporting periods beginning after December 15, 2019.  In addition, entities may early adopt the modified or eliminated disclosure requirements and delay adoption of the additional disclosure requirements until effective date.  The Company is currently assessing the impact of adoption of this guidance upon its disclosures.  ASU No. 2018-13 will not impact our consolidated financial statements, as the update only revises disclosure requirements.

XML

Related Party Transactions (Details) - USD ($) $ in Millions	Dec. 31, 2019	Jun. 30, 2019
Related Party Transactions [Abstract]
Loan made to directors and executive officers	$ 2.8	$ 2.8

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Dec. 31, 2019	Dec. 31, 2018	Dec. 31, 2019	Dec. 31, 2018
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract]
Net Income	$ 588	$ 1,175	$ 1,835	$ 2,393
Other Comprehensive (Loss) Income, Net of Tax
Unrealized Holding Gain (Loss) on Securities Available-for-Sale, Net of Tax of $41 and $24 in 2019 and $63 and $43 in 2018	(156)	238	(90)	163
Total Comprehensive Income	$ 432	$ 1,413	$ 1,745	$ 2,556

XML

Document and Entity Information - shares	6 Months Ended
	Dec. 31, 2019	Feb. 13, 2020
Cover [Abstract]
Entity Registrant Name	Home Federal Bancorp, Inc. of Louisiana
Entity Central Index Key	0001500375
Current Fiscal Year End Date	--06-30
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Shell Company	false
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Common Stock, Shares Outstanding		1,783,634
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Dec. 31, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q2
Entity Address, State or Province	LA