10-Q

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

For the quarterly period ended:	March 31, 2021
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 May 13, 2021: The registrant had 3,358,566 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	37
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)

	March 31, 2021			June 30, 2020
	(In Thousands)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $91,167 and $50,417       March 31, 2021 and June 30, 2020, Respectively)	$	100,971		$	54,871
Securities Available-for-Sale		28,565			42,060
Securities Held-to-Maturity (Fair Value of $41,731 and $21,879, Respectively)		41,802			20,858
Loans Held-for-Sale		22,254			14,798
Loans Receivable, Net of Allowance for Loan Losses of $4,387 and $4,081, Respectively		342,313			359,927
Accrued Interest Receivable		1,273			1,860
Premises and Equipment, Net		14,814			13,235
Bank Owned Life Insurance		7,185			7,087
Deferred Tax Asset		1,002			757
Foreclosed Assets		1,258			950
Other Assets		1,823			1,817
Total Assets	$	563,260		$	518,220
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing	$	129,305		$	103,422
Interest-bearing		376,091			357,388
Total Deposits		505,396			460,810
Advances from Borrowers for Taxes and Insurance		385			522
Short-term Federal Home Loan Bank Advances		35			193
Long-term Federal Home Loan Bank Advances		841			867
Other Borrowings		1,600			2,300
Other Accrued Expenses and Liabilities		2,861			2,993
Total Liabilities		511,118			467,685
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; 3,369,966 and 3,449,024 Shares Issued and       Outstanding (split adjusted) at March 31, 2021 and June 30, 2020, Respectively		34			22
Additional Paid-in Capital		37,116			36,531
Unearned ESOP Stock		(783	)		(870	)
Retained Earnings		15,508			13,937
Accumulated Other Comprehensive Income		267			915
Total Stockholders’ Equity		52,142			50,535
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	563,260		$	518,220

See accompanying notes to unaudited consolidated financial statements.

1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited)

	For the Three Months Ended March 31,					For the Nine Months Ended March 31,
	2021		2020			2021		2020
	(In Thousands, Except per Share Data)
INTEREST INCOME
Loans, Including Fees	$	4,853	$	4,378		$	14,574	$	13,662
Investment Securities		1		12			5		43
Mortgage-Backed Securities		307		401			905		1,218
Other Interest-Earning Assets		34		83			76		281
Total Interest Income		5,195		4,874			15,560		15,204
INTEREST EXPENSE
Deposits		723		1,298			2,571		3,992
Other Borrowings		19		19			50		36
Federal Home Loan Bank Borrowings		11		14			34		44
Total Interest Expense		753		1,331			2,655		4,072
Net Interest Income		4,442		3,543			12,905		11,132
PROVISION FOR LOAN LOSSES		450		316			1,750		1,441
Net Interest Income after Provision for Loan Losses		3,992		3,227			11,155		9,691
NON-INTEREST INCOME
Gain on Sale of Loans		936		604			3,553		1,751
Gainon Sale of Real Estate		--		(76	)		--		4
Gain on Sale of Securities		--		219			--		219
Income on Bank Owned Life Insurance		31		34			99		105
Service Charges on Deposit Accounts		231		258			731		821
Other Income		15		8			43		28
Total Non-Interest Income		1,213		1,047			4,426		2,928
NON-INTEREST EXPENSE
Compensation and Benefits		2,200		1,961			6,552		5,657
Occupancy and Equipment		387		353			1,157		1,081
Data Processing		176		144			571		435
Audit and Examination Fees		49		51			178		165
Franchise and Bank Shares Tax		105		111			302		348
Advertising		45		45			118		257
Legal Fees		91		113			355		376
Loan and Collection		89		58			266		226
Deposit Insurance Premium		35		12			103		12
Valuation Adjustment Real Estate Owned		--		--			200		--
Other Expense		215		185			603		560
Total Non-Interest Expense		3,392		3,033			10,405		9,117
Income Before Income Taxes		1,813		1,241			5,176		3,502
PROVISION FOR INCOME TAX EXPENSE		395		264			1,108		690
Net Income	$	1,418	$	977		$	4,068	$	2,812
EARNINGS PER COMMON SHARE:
Basic	$	0.44	$	0.29		$	1.26	$	0.83
Diluted	$	0.41	$	0.27		$	1.20	$	0.77
DIVIDENDS DECLARED	$	0.08	$	0.08		$	0.25	$	0.24

See accompanying notes to unaudited consolidated financial statements.

2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2021			2020			2021			2020
	(In Thousands)						(In Thousands)
Net Income	$	1,418		$	977		$	4,068		$	2,812
Other Comprehensive (Loss) Net of Tax
Investment securities available-for-sale:
Net unrealized (Losses) Gains		(488	)		989			(819	)		875
Income Tax Effect		102			(208	)		171			(184	)
Reclassification adjustments for net (gains) losses realized in net income		--			(219	)		--			(219	)
Income tax effect		--			46			--			46
Other Comprehensive (Loss) Income		(386	)		608			(648	)		518
Total Comprehensive Income	$	1,032		$	1,585		$	3,420		$	3,330

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 MARCH 31, 2021 AND 2020

(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 – December 31, 2019	$	23	$	36,327		$	(927	)	$	--	$	14,621		$	(70	)	$	49,974
Net Income		--		--			--			--		977			--			977
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--			--			--		--			608			608
Share Awards Earned		--		19			--			--		--			--			19
RRP Shares Earned		--		--			--			--		--			--			--
Stock Options Vested		--		34			--			--		--			--			34
Common Stock Issuance for Stock     Option Exercises		--		15			--			--		--			--			15
ESOP Compensation Earned		--		59			28			--		--			--			87
Company Stock Purchased		--		--			--			--		(1,774	)		--			(1,774	)
Dividends Declared		--		--			--			--		(286	)		--			(286	)
BALANCE – March 31, 2020	$	23	$	36,454		$	(899	)	$	--	$	13,538		$	538		$	49,654
BALANCE – December 31, 2020	$	22	$	36,981		$	(812	)	$	--	$	14,618		$	653		$	51,462
Net Income		--		--			--			--		1,418			--			1,418
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--			--			--		--			(386	)		(386	)
Share Awards Earned		--		19			--			--		--			--			19
RRP Shares Earned		--		--			--			--		--			--			--
Stock Split		12		(12	)		--			--		--			--			--
Stock Options Vested		--		26			--			--		--			--			26
Common Stock Issuance for Stock     Option Exercises – Split Adjusted		--		44			--			--		--			--			44
ESOP Compensation Earned		--		58			29			--		--			--			87
Company Stock Purchased		--		--			--			--		(249	)		--			(249	)
Dividends Declared		--		--			--			--		(279	)		--			(279	)
BALANCE – March 31, 2021	$	34	$	37,116		$	(783	)	$	--	$	15,508		$	267		$	52,142

See accompanying notes to unaudited consolidated financial statements.

4

FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

NINE MONTHS ENDED MARCH 31, 2021 AND 2020

(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, 2019	$	23	$	35,914		$	(985	)	$	--	$	15,370		$	20		$	50,342
Net Income		--		--			--			--		2,812			--			2,812
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--			--			--		--			518			518
Share Awards Earned		--		153			--			--		--			--			153
RRP Shares Earned		--		24			--			--		--			--			24
Stock Options Vested		--		103			--			--		--			--			103
Common Stock Issuance for Stock     Option Exercises – Split Adjusted		--		65			--			--		--			--			65
ESOP Compensation Earned		--		195			86			--		--			--			281
Company Stock Purchased		--		--			--			--		(3,779	)		--			(3,779	)
Dividends Declared		--		--			--			--		(865	)		--			(865	)
BALANCE – March 31, 2020	$	23	$	36,454		$	(899	)	$	--	$	13,538		$	538		$	49,654
BALANCE – June 30, 2020	$	22	$	36,531		$	(870	)	$	--	$	13,937		$	915		$	50,535
Net Income		--		--			--			--		4,068			--			4,068
Changes in Unrealized Gain     on Securities Available-for-     Sale, Net of Tax Effects		--		--			--			--		--			(648	)		(648	)
Share Awards Earned		--		153			--			--		--			--			153
RRP Shares Earned		--		--			--			--		--			--			--
Stock Split		12		(12	)		--			--		--			--			--
Stock Options Vested		--		81			--			--		--			--			81
Common Stock Issuance for Stock     Option Exercises		--		219			--			--	--`				--			219
ESOP Compensation Earned		--		144			87			--		--			--			231
Company Stock Purchased		--		--			--			--		(1,653	)		--			(1,653	)
Dividends Declared		--		--			--			--		(844	)		--			(844	)
BALANCE – March 31, 2021	$	34	$	37,116		$	(783	)	$	--	$	15,508		$	267		$	52,142

See accompanying notes to unaudited consolidated financial statements.

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended
	March 31,
	2021			2020
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	4,068		$	2,812
Adjustments to Reconcile Net Income to Net
Cash (Used in) Provided by Operating Activities
Bad Debt Recovery		202			8
Federal Home Loan Bank Stock Certificate		(5	)		(43	)
Net Amortization and Accretion on Securities		101			70
(Gain) Loss on Sale of Real Estate		--			(4	)
Gain on Sale of Loans		(3,553	)		(1,751	)
Gain on Sale of Securities		--			(219	)
Amortization of Deferred Loan Fees		(1,157	)		(107	)
Depreciation of Premises and Equipment		495			487
ESOP Expense		231			281
Stock Option Expense		81			103
Recognition and Retention Plan Expense		--			2
Deferred Income Tax		(245	)		61
Valuation Adjustment Real Estate Owned		200			--
Provision for Loan Losses		1,750			1,441
Increase in Cash Surrender Value on Bank Owned Life Insurance		(99	)		(105	)
Share Awards Expense		94			111
Changes in Assets and Liabilities:
Loans Held-for-Sale – Originations and Purchases		(159,954	)		(75,089	)
Loans Held-for-Sale – Sale and Principal Repayments		156,051			74,970
Accrued Interest Receivable		587			100
Other Operating Assets		(6	)		(114	)
Other Operating Liabilities		(132	)		(86	)
Net Cash (Used in) Provided by Operating Activities		(1,291	)		2,928
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		15,829			3,284
Deferred Loan Fees Collected		560			120
Acquisition of Premises and Equipment		(2,074	)		(701	)
Proceeds from Sale of Real Estate		--			2,343
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities		17,695			8,991
Sale of Securities		--			9,856
Purchases of Securities		(5,077	)		(21,250	)
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities		4,487			3,785
Sale/Redemptions of Securities		2,437			--
Purchase of Securities		(27,907	)		(245	)
Net Cash Provided by Investing Activities		5,951			6,183

See accompanying notes to unaudited consolidated financial statements.

6

HOME FEDERAL BANCORP, INC. OF LOUISIANA
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
(Unaudited)
	Nine Months Ended
	March 31,
	2021			2020
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits	$	44,586		$	17,900
Repayments of Advances from Federal Home Loan Bank		(184	)		(220	)
Proceeds from Other Borrowings		1,800			1,800
Repayments of Other Borrowings		(2,500	)		(450	)
Net Decrease in Advances from Borrowers for Taxes and Insurance		(137	)		(211	)
Dividends Paid		(844	)		(865	)
Company Stock Purchased		(1,653	)		(3,779	)
Proceeds from Stock Options Exercised		219			65
Plan Share Distributions		153			153
Net Cash Provided byFinancing Activities		41,440			14,393
NET INCREASE IN CASH AND CASH EQUIVALENTS		46,100			23,504
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		54,871			18,108
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	100,971		$	41,612
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	2,680		$	3,002
Income Taxes Paid		925			760
Market Value Adjustment for (Loss) Gain on Debt Securities Available-for-Sale		(819	)		656

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 nine month period ended March 31, 2021 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2021.

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

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2021.  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 March 31, 2021, 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.

8

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1.Summary of Accounting Policies (continued)

Securities

Securities are being accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320’s, Investments whichrequires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity.  Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically.

Investments in non-marketable 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 cost, adjusted for amortization of the related premiums, and accretion of discounts, using the interest method.  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 debt securities are excluded from earnings and reported in other comprehensive income.  

The Company held no trading securities as of March 31, 2021 and June 30, 2020.

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 Company 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.

9

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.Summary of Accounting Policies (continued)

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 Improvements10 - 40 Years

Furniture and Equipment         3 - 10 Years

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.Summary of Accounting Policies (continued)

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 $118,000 and $257,000 for the nine months ended March 31, 2021 and 2020, respectively.

In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.  For the nine months ended March 31, 2021 and 2020, the Company did not incur any amount of direct-response advertising.

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

1.Summary of Accounting Policies (continued)

Reclassification

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

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains, and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale debt 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 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, 2022, 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 December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)." The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improved the consistent application of and simplified GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in the ASU are effective for fiscal years and interim periods beginning after December 15, 2020. The Company does not expect the adoption of this ASU to impact the consolidated financial statements.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.Securities

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

	March 31, 2021
		Gross		Gross
	Amortized	Unrealized		Unrealized		Fair
	Cost	Gains		Losses		Value
		(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	2,161	$	47	$	--	$	2,208
FNMA Mortgage-Backed Certificates	19,238		550		--		19,788
GNMA Mortgage-Backed Certificates	6,827		1		259		6,569
Debt Securities
Total Debt Securities	28,226		598		259		28,565
Total Securities Available-for-Sale	28,226	$	598	$	259	$	28,565
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	787	$	16	$	--	$	803
FNMA Mortgage-Backed Certificates	4,955		--		104		4,851
FHLMC Mortgage-Backed Certificates	34,167		639		622		34,184
Total Debt Securities	39,909		655		726		39,838
Municipals	1,366		--		--		1,366
Equity Securities (Non-Marketable)
2,766 Shares – Federal Home Loan Bank	277		--		--		277
630 Shares – First National Bankers Bankshares, Inc.	250		--		--		250
Total Equity Securities	527		--		--		527
Total Securities Held-to-Maturity	41,802	$	655	$	726	$	41,731

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.Securities (continued)

	June 30, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
	(In Thousands)
Securities Available-for-Sale
Debt Securities
FHLMC Mortgage-Backed Certificates	$	5,018	$	141	$	--	$	5,159
FNMA Mortgage-Backed Certificates		30,820		1,032		--		31,852
GNMA Mortgage-Backed Certificates		5,064		23		38		5,049
Total Debt Securities		40,902		1,196		38		42,060
Total Securities Available-for-Sale	$	40,902	$	1,196	$	38	$	42,060
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Securities	$	1,109	$	20	$	--	$	1,129
FNMA Mortgage-Backed Securities		16,546		997		--		17,543
Total Debt Securities		17,655		1,017		--		18,672
Municipals		243		4		--		247
Equity Securities (Non-Marketable)
27,094 Shares – Federal Home Loan Bank		2,710		--		--		2,710
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,960		--		--		2,960
Total Securities Held-to-Maturity	$	20,858	$	1,021	$	--	$	21,879

The amortized cost and fair value of securities by contractual maturity at March 31, 2021 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
			(In Thousands)
Debt Securities
Within One Year or Less	$	629	$	617	$	--	$	--
One through Five Years		5,815		5,979		--		--
After Five through Ten Years		16,898		17,307		--		--
Over Ten Years		4,884		4,662		39,909		39,838
		28,226		28,565		39,909		39,838
Municipals
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		--		--		241		241
After Five through Ten Years		--		--		--		--
Over Ten Years		--		--		1,125		1,125
		--		--		1,366		1,366
Other Equity Securities		--		--		527		527
Total	$	28,226	$	28,565	$	41,802	$	41,731

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

2.Securities (continued)

Securities available-for-sale totaling $5.1 million were purchased during the nine months ending March 31, 2021.  Securities held-to-maturity totaling $27.9 million were purchased during the nine months ending March 31, 2021.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2021 and June 30, 2020 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2021
	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	$	222	$	4,662	$	37	$	1,856
Total Securities Available-for-Sale	$	222	$	4,662	$	37	$	1,856

	June 30, 2020
	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	$	--	$	--	$	38	$	2,816
Total Securities Available-for-Sale	$	--	$	--	$	38	$	2,816

The unrealized losses on the Company’s investment in mortgage-backed securities at March 31, 2021 and June 30, 2020 were caused by interest rate changes.  The contractual cash flows of these investments are guaranteed by agencies of the U.S. Government.  Accordingly, it is expected that these securities would not be settled at a price less than the amortized cost of the Company’s investment.  Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2021.

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

At March 31, 2021, securities with a carrying value of $1.3 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $187.6 million were pledged to secure FHLB advances.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2021			June 30, 2020
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	99,480		$	108,146
Commercial		93,282			87,088
Multi-Family Residential		45,241			47,432
Land		16,690			18,068
Construction		11,305			8,159
Equity and Second Mortgage		1,289			1,410
Equity Lines of Credit		9,488			12,252
Total Mortgage Loans		276,775			282,555
Commercial Loans		69,789			81,909
Consumer Loans
Loans on Savings Accounts		458			364
Other Consumer Loans		518			615
Total Consumer Other Loans		976			979
Total Loans		347,540			365,443
Less:  Allowance for Loan Losses		(4,387	)		(4,081	)
Unamortized Loan Fees		(840	)		(1,435	)
Net Loans Receivable	$	342,313		$	359,927

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

	Nine Months Ended March 31,
	2021			2020
	(In Thousands)
Balance - Beginning of Period	$	4,081		$	3,452
Provision for Loan Losses		1,750			1,441
Loan Charge-Offs		(1,646	)		(1,118	)
Recoveries		202			8
Balance - End of Period	$	4,387		$	3,783

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:

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

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

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

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

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

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

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

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	98,876	$	359	$	245	$		$	99,480
Commercial		90,193		--		3,089		--		93,282
Multi-Family Residential		45,241		--		--		--		45,241
Land		16,690		--		--		--		16,690
Construction		11,305		--		--		--		11,305
Equity and Second Mortgage		1,289		--		--		--		1,289
Equity Lines of Credit		9,488		--		--		--		9,488
Commercial Loans		69,789		--		--		--		69,789
Consumer Loans		976		--		--		--		976
Total	$	343,847	$	359	$	3,334	$	--	$	347,540

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

 

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

June 30, 2020	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	106,886	$	475	$	785	$	--	$	108,146
Commercial		83,376		1,915		1,797		--		87,088
Multi-Family Residential		47,432		--		--		--		47,432
Land		15,087		--		2,981		--		18,068
Construction		8,159		--		--		--		8,159
Equity and Second Mortgage		1,410		--		--		--		1,410
Equity Lines of Credit		12,235		17		--		--		12,252
Commercial Loans		81,452		--		457		--		81,909
Consumer Loans		979		--		--		--		979
Total	$	357,016	$	2,407	$	6,020	$	--	$	365,443

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

The following tables present an aging analysis of past due loans, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	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	$	--	$	--	$	254	$	254	$	99,226	$	99,480	$	--
Commercial		--		--		1,183		1,183		92,099		93,282		--
Multi-Family Residential		--		--		--		--		45,241		45,241		--
Land		--		--		--		--		16,690		16,690		--
Construction		--		--		--		--		11,305		11,305		--
Equity and Second Mortgage		--		--		--		--		1,289		1,289		--
Equity Lines of Credit		29		--		--		29		9,459		9,488		--
Commercial Loans		--		--		--		--		69,789		69,789		--
Consumer Loans		--		--		--		--		976		976		--
Total	$	29	$	--	$	1,437	$	1,466	$	346,074	$	347,540	$	--

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

June 30, 2020	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	$	1,312	$	557	$	1,003	$	2,872	$	105,274	$	108,146	$	319
Commercial		--		--		1,797		1,797		85,291		87,088		--
Multi-Family Residential		--		--		--		--		47,432		47,432		--
Land		--		--		2,981		2,981		15,087		18,068		--
Construction		--		--		--		--		8,159		8,159		--
Equity and Second Mortgage		--		--		--		--		1,410		1,410		--
Equity Lines of Credit		--		--		--		--		12,252		12,252		--
Commercial Loans		--		--		457		457		81,452		81,909		--
Consumer Loans		--		--		--		--		979		979		--
Total	$	1,312	$	557	$	6,238	$	8,107	$	357,336	$	365,443	$	319

There was no interest income recognized on non-accrual loans during the nine months ended March 31, 2021 or year ended June 30, 2020. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the nine months ended March 31, 2021 and the year ended June 30, 2020 was approximately $53,000 and $464,000, respectively.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2021 and year ended June 30, 2020 was as follows:

	Real Estate Loans
March 31, 2021	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	$	966		$	568		$	364	$	1,024		$	80	$	126	$	949		$	4	$	4,081
Charge-Offs		(41	)		(698	)		--		(907	)		--		--		--			--		(1,646	)
Recoveries		3			--			--		120			--		5		74			--		202
Current Provision		128			1,494			306		224			50		34		(486	)		--		1,750
Ending Balances	$	1,056		$	1,364		$	670	$	461		$	130	$	165	$	537		$	4	$	4,387
Evaluated for Impairment:
Individually		--			411			--		--			--		--		--			--		411
Collectively		1,056			953			670		461			130		165		537			4		3,976
Loans Receivable:
Ending Balances – Total	$	99,480		$	93,282		$	45,241	$	16,690		$	11,305	$	10,777	$	69,789		$	976	$	347,540
Ending Balances:
Evaluated for Impairment:
Individually		--			3,089			--		--			--		--		--			--		3,089
Collectively	$	99,480		$	90,193		$	45,241	$	16,690		$	11,305	$	10,777	$	69,789		$	976	$	344,451

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

	Real Estate Loans
June 30, 2020	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		(40	)		(100	)		--		--		--			(107	)		(1,135	)		--		(1,382	)
Recoveries		2			--			--		--		--			9			109			--		120
Current Provision		(13	)		160			26		924		(35	)		80			748			1		1,891
Ending Balances	$	966		$	568		$	364	$	1,024	$	80		$	126		$	949		$	4	$	4,081
Evaluated for Impairment:
Individually		34			23			--		907		--			--			--			--		964
Collectively		932			545			364		117		80			126			949			4		3,117
Loans Receivable:
Ending Balances – Total	$	108,146		$	87,088		$	47,432	$	18,068	$	8,159		$	13,662		$	81,909		$	979	$	365,443
Ending Balances:
Evaluated for Impairment:
Individually		1,260			3,712			--		2,981		--			17			457			--		8,427
Collectively	$	106,886		$	83,376		$	47,432	$	15,087	$	8,159		$	13,645		$	81,452		$	979	$	357,016

The following table’s present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	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	$	604	$	604	$	--	$	604	$	--	$	607
Commercial		3,089		775		2,314		3,089		411		3,496
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	3,693	$	1,379	$	2,314	$	3,693	$	411	$	4,103

June 30, 2020	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,260	$	1,260	$	--	$	1,260	$	--	$	1,271
Commercial		3,712		3,712		--		3,712		--		5,108
Multi-Family Residential		--		--		--		--		--		--
Land		2,981		--		2,981		2,981		907		2,981
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		17		17		--		17		--		17
Commercial Loans		457		457		--		457		--		457
Consumer Loans		--		--		--		--		--		--
Total	$	8,427	$	5,446	$	2,981	$	8,427	$	907	$	9,834

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

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

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

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

	March 31, 2021
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial real estate		$	--		$	1,183		$	1,183		$	1,183
	June 30, 2020
	Current			Past Due Greater Than 30 Days			Nonaccrual TDRs			Total TDRs
Commercial business		$	--		$	457		$	457		$	457
1-4 Family Residential			--			76			76			76
Commercial real estate			--			1,797			1,797			1,797

For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology.  If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans.  As of March 31, 2021, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.

Loan Modifications/Troubled Debt Restructurings. Under the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (“TDR”), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either January 1, 2022 or the 60^th day after the end of the COVID-19 national emergency. Home Federal Bank has made that election. Similarly, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief will not be considered TDRs.

Prior to the enactment of the CARES Act, the banking regulatory agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act.

The Bank handles loan payment modification requests on a case-by-case basis considering the effects of the COVID-19 pandemic, related economic slow-down and stay-at-home orders on our customer and their current and projected cash flows through the term of the loan. Through March 31, 2021, we modified 3 loans with principal balances totaling $5.0 million representing 1.4% of our loans outstanding as of March 31, 2021. A majority of deferrals are three-month payment deferrals of principal and interest, with payments after deferral increased to collect amounts deferred. It is too early to determine if these modified loans will perform in accordance with their modified terms.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

3.Loans Receivable (continued)

Credit Quality Indicators (continued)

Details with respect to actual loan modifications are as follows:

	Number of Covid-19 Remaining Deferments at March 31, 2021		Balance (in thousands)		Percent of Total Loans at March 31, 2021
One-to-Four family residential		1	$	2,237		2.2	%
Commercial real estate		1		2,553		2.7
Multi-family residential		--		--		--
Land		--		--		--
Construction		--		--		--
Equity and second mortgage		--		--		--
Equity lines of credit		1		180		1.9
Commercial business		--		--		--
Consumer		--		--		--
Total		3	$	4,970		1.4	%

	Number of Covid-19 Deferments Year Ended June 30, 2020		Balance (in thousands)		Percent of Total Loans at June 30, 2020
One-to-Four family residential		101	$	27,705		25.6	%
Commercial real estate		40		28,278		32.5
Multi-family residential		9		18,046		38.0
Land		7		1,190		6.6
Construction		1		680		8.3
Equity and second mortgage		--		--		--
Equity lines of credit		19		1,586		12.9
Commercial business		39		6,609		8.1
Consumer		--		--		--
Total		216	$	84,094		23.0	%

4.Deposits

Deposits at March 31, 2021 and June 30, 2020 consist of the following classifications:

	March 31, 2021		June 30, 2020
	(In Thousands)
Non-Interest Bearing	$	129,305	$	103,422
NOW Accounts		46,538		41,365
Money Markets		81,362		74,637
Passbook Savings		122,956		83,797
		380,161		303,221
Certificates of Deposit		125,235		157,589
Total Deposits	$	505,396	$	460,810

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

5.Earnings Per Share

Home Federal Bank announced that its Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend, payable March 31, 2021, to stockholders of record as of March 22, 2021. Under the terms of the stock split, the Company’s stockholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Company. The par value of the Company's stock was not affected by the split and will remain at $0.01 per share. The outstanding shares of stock after the split increased from approximately 1.7 million shares to 3.4 million shares. The Company’s most recent quarterly cash dividend was $0.165 per share payable on February 15, 2021. The Board of Directors maintained a similar level of total cash dividends to shareholders post-split and declared a quarterly cash dividend of $0.0825 per share on April 21, 2021, payable on May 17, 2021 to shareholders of record at the close of business on May 3, 2021.

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and nine months ended March 31, 2021 and 2020 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
	(In Thousands, Except Per Share Data)
Net income	$	1,418	$	977	$	4,068	$	2,812
Weighted average shares outstanding – basic		3,219		3,364		3,238		3,406
Effect of dilutive common stock equivalents		235		246		153		254
Adjusted weighted average shares outstanding – diluted		3,454		3,610		3,391		3,660
Basic earnings per share	$	0.44	$	0.29	$	1.26	$	0.83
Diluted earnings per share	$	0.41	$	0.27	$	1.20	$	0.77

For the three months ended March 31, 2021 and 2020, there were outstanding options to purchase 691,445 and 545,196 shares, respectively, at a weighted average exercise price of $9.94 and $9.03 per share, respectively and for the nine months ended March 31, 2021 and 2020, there were outstanding options to purchase 614,261 and 548,362 shares, respectively, at a weighted average exercise price of $9.94 and $9.00 per share, respectively. For the quarter ended March 31, 2021 and 2020, 235,171 options and 245,998 options, respectively, were included in the computation of diluted earnings per share. For the nine month period ended March 31, 2021 and 2020, 153,115 options and 253,654 options, respectively, were included in the computation of diluted earnings per share.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2021			2020
	(In Thousands)
Average common shares issued		6,124			6,124			6,124			6,124
Average unearned ESOP shares		(159	)		(182	)		(165	)		(188	)
Average unearned RRP shares		--			--			--			(2	)
Average Company stock purchased		(2,746	)		(2,578	)		(2,721	)		(2,528	)
Weighted average shares outstanding		3,219			3,364			3,238			3,406

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

6.Stock-Based Compensation

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 317,736 (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 866 outstanding options as of March 31, 2021 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 389,044.  Both incentive stock options and non-qualified stock options may be granted under the 2011 Option Plan.  On January 31, 2012 and July 31, 2014, 330,688 options and 58,356 options, respectively, were granted to directors and employees at an exercise price of $7.35 and $9.46 per share, respectively, under the 2011 Option Plan.  As of March 31, 2021, there were 778 stock options available for future grant under the 2011 Option Plan.

Incentive stock options and non-qualified stock options granted under the Option Plans become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee’s employment or service as a director is terminated.  In the event of 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 Plan

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 300,000 shares, of which no more than 74,000 shares, or 25% of the plan, may be share rewards.  The balance of the plan is reserved for stock option awards which would total 225,000 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 69,000 plan share awards and 207,000 stock options to directors, officers, and other key employees vesting ratably over five years. On February 5, 2019, the Company granted a total of 6,000 plan share awards and 27,000 stock options (which includes 9,000 stock options forfeited from the October 26, 2015 grants) to key employees vesting ratably over five years.

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,” together with the 2014 Stock Incentive Plan, the “Stock Incentive Plans”) which provides for a total of 250,000 shares reserved for future issuance as stock awards or stock options. No more than 62,500 shares, or 25%, may be granted as stock awards.  The balance of the plan is reserved for stock option awards. On November 11, 2020, the Company granted a total of 62,500 plan share awards and 187,500 stock options to directors, officers and other key employees vesting ratably over five years. The Stock Incentive Plans costs are recognized over the five year vesting period.  As of March 31, 2021, there are no plan share awards or stock options available for future grants under the Stock Incentive Plans.

Compensation expense pertaining to the 2011 Recognition Plan and the share awards under the Stock Incentive Plans was approximately $153,000 and $177,000 for the nine months ended March 31, 2021 and 2020, respectively. For the nine months ended March 31, 2021 and 2020, compensation expense charged to operations for stock options granted under the 2011 Option Plan and the Stock Incentive Plans was $81,000 and $103,000, respectively.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

7.Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $3.3 million and $3.8 million at March 31, 2021 and June 30, 2020, respectively.

8.Fair Value Disclosures

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

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

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

Cash and Cash Equivalents

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

Investment Securities

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

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.Fair Value Disclosures (continued)

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

At March 31, 2021 and June 30, 2020, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2021				June 30, 2020
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	100,971	$	100,971	$	54,871	$	54,871
Securities Available-for-Sale		28,565		28,565		42,060		42,060
Securities to be Held-to-Maturity		41,802		41,731		20,858		21,879
Loans Held-for-Sale		22,254		22,254		14,798		14,798
Loans Receivable		342,313		341,914		359,927	$	359,581
Financial Liabilities
Deposits	$	505,396	$	501,187	$	460,810	$	458,994
Advances from FHLB		876		940		1,060		1,150
Off-Balance Sheet Items
Mortgage Loan Commitments	$	8,555	$	8,555	$	8,536	$	8,536

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.

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

8.Fair Value Disclosures (continued)

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

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

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

The preceding methods described may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values.  Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.  There have been no changes in the methodologies used during the nine months ended March 31, 2021.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2021 and June 30, 2020 are as follows:

	Fair Value Measurements Using:
March 31, 2021	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	$	--	$	2,208	$	--	$	2,208
FNMA		--		19,788		--		19,788
GNMA		--		6,569		--		6,569
Total	$	--	$	28,565	$	--	$	28,565

	Fair Value Measurements Using:
June 30, 2020	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	$	--	$	5,159	$	--	$	5,159
FNMA		--		31,852		--		31,852
GNMA		--		5,049		--		5,049
Total	$	--	$	42,060	$	--	$	42,060

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NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)

9.           Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On July 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches with terms extending through 2058. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities.

(In Thousands)		March 31, 2021	June 30, 2020
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$   862	$   877
Totoal Lease Right-of-Use assets		$   862	$   877
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$   877	$   887
Total Lease Liabilities		$   877	$   887

The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to July 1, 2019, the rate for the remaining lease term as of July 1, 2019, was the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception.

	March 31, 2021	June 30, 2020
Weighted-average remaining lease term
Operating leases	37.7 years	38.4 years
Weighted-average discount rate
Operating leases	3.00%	3.00%

10.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, 2020 to March 31, 2021

General

At March 31, 2021, the Company reported total assets of $563.3 million, an increase of $45.0 million, or 8.7%, compared to total assets of $518.2 million at June 30, 2020. The increase in assets was comprised primarily of increases in cash and cash equivalents of $46.1 million, or 84.0%, from $54.9 million at June 30, 2020 to $101.0 million at March 31, 2021, loans held-for-sale of $7.5 million, or 50.4%, from $14.8 million at June 30, 2020 to $22.3 million at March 31, 2021, investment securities of $7.4 million, or 11.8%, from $62.9 million at June 30, 2020 to $70.4 million at March 31, 2021, premises and equipment of $1.6 million, or 11.9%, from $13.2 million at June 30, 2020 to $14.8 million at March 31, 2021, foreclosed assets of $308,000, or 32.4%, from $950,000 at June 30, 2020 to $1.3 million at March 31, 2021, deferred tax assets of $245,000, or 32.4%, from $757,000 at June 30, 2020 to $1.0 million at March 31, 2021, bank owned life insurance of $98,000, or 1.4%, from $7.1 million at June 30, 2020 to $7.2 million at March 31, 2021, and other assets of $6,000, or 0.3%, totaling $1.8 million at both June 30, 2020 and March 31, 2021. These increases were partially offset by decreases in loans receivable, net of $17.6 million, or 4.9%, from $359.9 million at June 30, 2020 to $342.3 million at March 31, 2021, and accrued interest receivable of $587,000, or 31.6%, from $1.9 million at June 30, 2020 to $1.3 million at March 31, 2021. The increase in investment securities was primarily due to security purchases of $33.0 million offset by principal repayments on mortgage backed securities of $22.2 million and a redemption of FHLB stock for $2.4 million.  The increase in loans held-for-sale resulted primarily from an increase in loans originated for sale during the nine months ended March 31, 2021.  The decrease in loans receivable was primarily due to $33.4 million of SBA PPP loans being forgiven and paid off by the SBA.

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Discussion of Financial Condition Changes from June 30, 2020 to March 31, 2021 (continued)

Cash and Cash Equivalents

Cashand cash equivalents increased $46.1 million, or 84.0%, from $54.9 million at June 30, 2020 to $101.0 million at March 31, 2021. The $46.1 million increase in cash and cash equivalents was primarily due to deposit growth and principal payoffs on loans.

Loans Receivable, Net

Loans receivable, net, decreased by $17.6 million, or 4.9%, to $342.3 million at March 31, 2021 compared to $359.9 million at June 30, 2020.  The decrease in loans receivable, net was primarily due to decreases in commercial non-real estate loans of $12.1 million, one-to-four-family residential loans of $8.7 million, equity line-of-credit loans of $2.8 million, multi-family residential loans of $2.2 million, land loans of $1.4 million, equity and second mortgage loans of $121,000, and consumer loans of $3,000, partially offset by increases in commercial real estate loans of $6.2 million, and construction loans of $3.1 million.

Loans Held-for-Sale

Loans held-for-sale increased $7.5 million, or 50.4%, from $14.8 million at June 30, 2020 to $22.3 million at March 31, 2021.  The increase in loans held-for-sale results primarily from an increase in the origination volume during the first nine months of fiscal 2021.

Investment Securities

Investment securities amounted to $70.4 million at March 31, 2021 compared to $62.9 million at June 30, 2020, an increase of $7.4 million, or 11.8%.  The increase in investment securities was primarily due to security purchases of $33.0 million offset by principal repayments on mortgage backed securities of $22.2 million and a redemption of FHLB stock for $2.4 million.

Premises and Equipment, Net

Premises and equipment, net increased $1.6 million, or 11.9%, to $14.8 million at March 31, 2021 compared to $13.2 million at June 30, 2020.  The increase in premises and equipment was primarily due to the relocation of the Company’s Mansfield Road Branch which was a leased property to a new location in Southern Hills in December 2020.

Asset Quality

At March 31, 2021, the Company had $2.7 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 $7.2 million of non-performing assets at June 30, 2020, consisting of six commercial real estate loans to one borrower, twosingle-family residential loans, one single-family residential property and two commercial real estate properties in other real estate owned at March 31, 2021, compared to five single-family residential loans, five commercial real estate loans to one borrower, one lot loan, one land loan and two commercial real estate properties in other real estate owned at June 30, 2020.  The decrease in non-performing assets from $7.2 million at June 30, 2020 to $2.7 million at March 31, 2021 was primarily due to a payoff of $2.0 million on one lot loan and one land loan to the same borrower, a write-down of $907,000 on a lot loan, a write-down of $698,000 on a commercial real estate loan, and the paydown of a portion of the collateral on the same commercial real estate loan totaling $449,000.  At March 31, 2021, the Company had twosingle family residential loans, sixcommercial real estate loans to one borrower, and two commercial real estate loans to one borrower classified as substandard compared to four single family residential loans, two commercial land and lot development loans, and six commercial real estate loans to one borrower classified as substandard at June 30, 2020. There were no loans classified as doubtful at March 31, 2021 or June 30, 2020.

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Discussion of Financial Condition Changes from June 30, 2020 to March 31, 2021 (continued)

Total Liabilities

Total liabilities increased $43.4 million, or 9.3%, from $467.7 million at June 30, 2020 to $511.1 million at March 31, 2021 primarily due to an increase in total deposits of $44.6 million, or 9.7%, to $505.4 million at March 31, 2021 compared to $460.8 million at June 30, 2020, partially offset by a decrease of $700,000, or 30.4%, in other borrowings from $2.3 million at June 30, 2020 to $1.6 million at March 31, 2021, a decrease of $184,000, or 17.4%, in advances from the Federal Home Loan Bank from $1.1 million at June 30, 2020 to $876,000 at March 31, 2021, a decrease of $137,000, or 26.2%, in advances from borrowers for taxes and insurance from $522,000 at June 30, 2020 to $385,000 at March 31, 2021, and a decrease of $132,000, or 4.4%, in other accrued expenses and liabilities from $3.0 million at June 30, 2020 to $2.9 million at March 31, 2021.  The increase in deposits was primarily due to a $39.2 million, or 46.7%, increase in savings deposits from $83.8 million at June 30, 2020 to $123.0 million at March 31, 2021, a $25.9 million, or 25.0%, increase in non-interest bearing deposits from $103.4 million at June 30, 2020 to $129.3 million at March 31, 2021, an increase in money market deposits of $6.8 million, or 9.0%, from $74.6 million at June 30, 2020 to $81.4 million at March 31, 2021, and an increase in NOW accounts of $5.2 million, or 12.5%, from $41.4 million at June 30, 2020 to $46.5 million at March 31, 2021, partially offset by a decrease of $32.4 million, or 20.5%, in certificates of deposit from $157.6 million at June 30, 2020 to $125.2 million at March 31, 2021. The Company had $10.7 million in brokered deposits at March 31, 2021 compared to $16.1 million at June 30, 2020.  The decrease in advances from the Federal Home Loan Bank was primarily due to principal paydowns on amortizing advances.

Shareholders’ Equity

Shareholders’ equity increased $1.6 million, or 3.2%, to $52.1 million at March 31, 2021 from $50.5 million at June 30, 2020.  The primary reasons for the changes in shareholders’ equity from June 30, 2020 were net income of $4.1 million, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $465,000, and proceeds from the issuance of common stock from the exercise of stock options of $219,000, partially offset by the acquisition of Company stock of $1.7 million, dividends paid totaling $844,000, and a decrease in the Company’s accumulated other comprehensive income of $648,000.

Regulatory Capital

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At March 31, 2021, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements.

Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2021 and 2020

General

The increase in net income for the three months ended March 31, 2021, as compared to the prior year quarter resulted primarily from a $899,000, or 25.4%, increase in net interest income, and an increase of $166,000, or 15.9%, in non-interest income, partially offset by an increase of $359,000, or 11.8%, in non-interest expense, an increase of $134,000, or 42.4%, in provision for loan losses, and a $131,000, or 49.7%, increase in provision for income taxes.

The increase in net income for the nine months ended March 31, 2021 resulted primarily from an $1.8 million, or 15.9%, increase in net interest income, an increase of $1.5 million, or 51.2%, in non-interest income, partially offset by an increase of $1.3 million, or 14.1%, in non-interest expense, an increase of $418,000, or 60.6%, in provision for income taxes and a $309,000, or 21.4%, increase in provision for loan losses.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2021 and 2020 (continued)

Net Interest Income

The increase in net interest income for the three months ended March 31, 2021 was primarily due to a $578,000, or 43.4%, decrease in total interest expense, primarily due to a decrease of 74 basis points in the average rate on interest-bearing deposits, and an increase of $321,000, or 6.6%, in total interest income. The cost of funds from Federal Home Loan Bank borrowings decreased $3,000, or 21.4%, compared to the prior year three month period and interest paid on deposits decreased $575,000, or 44.3%, compared to the prior year three month period. The Company’s average interest rate spread was 3.31% for the three months ended March 31, 2021 compared to 2.98% for the three months ended March 31, 2020. The Company’s net interest margin was 3.53% for the three months ended March 31, 2021 compared to 3.30% for the three months ended March 31, 2020.

Net interest income for the nine months ended March 31, 2021 was $12.9 million, an increase of $1.8 million, or 15.9%, in comparison to the nine months ended March 31, 2020.  The increase in net interest income for the nine month period was primarily due to a $1.4 million, or 34.8%, decrease in total interest expense, and by an increase of $356,000, or 2.3%, in total interest income.  The cost of funds from Federal Home Loan Bank borrowings decreased $10,000, or 22.7%, compared to the prior year nine month period and interest paid on deposits decreased $1.4 million, or 35.6%, compared to the prior year nine month period.  Interest paid on other borrowing increased $14,000, or 38.9% compared to the prior year nine month period.  The Company’s average interest rate spread was 3.15% for the nine months ended March 31, 2021, compared to 3.13% for the nine months ended March 31, 2020. The Company’s net interest margin was 3.41% for the nine months ended March 31, 2021, compared to 3.47% for the nine months ended March 31, 2020.

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 $450,000 and $1.8 million was made during the three and nine months ended March 31, 2021, respectively, compared to a $316,000 and $1.4 million provision made during the three and nine months ended March 31, 2020. The allowance for loan losses was $4.4 million, or 1.26% of total loans receivable, at March 31, 2021 compared to $3.8 million, or 1.17% of total loans receivable, at March 31, 2020.  At March 31, 2021, Home Federal Bank had $1.4 million in non-performing loans and $1.3 million in foreclosed assets which totaled $2.7 million in non-performing assets.

At March 31, 2021, the Company had $2.7 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 $7.2 million of non-performing assets at June 30, 2020, consisting of six commercial real estate loans to one borrower, two single-family residential loans,one single-family residential property and two commercial real estate properties in other real estate owned at March 31, 2021, compared to five single-family residential loans, five commercial real estate loans to one borrower, one lot loan, one land loan and two commercial real estate properties in other real estate owned at June 30, 2020.  The decrease in non-performing assets from $7.2 million at June 30, 2020 to $2.7 million at March 31, 2021 was primarily due to a payoff of $2.0 million on one lot loan and one land loan to the same borrower, a write-down of $907,000 on a lot loan, a write-down of $698,000 on a commercial real estate loan, and the paydown of a portion of the collateral on the same commercial real estate loan totaling $449,000. At March 31, 2021, the Company had twosingle family residential loans, sixcommercial real estate loans to one borrower, and two commercial real estate loans to one borrower classified as substandard compared to four single family residential loans, two commercial land and lot development loans, and six commercial real estate loans to one borrower classified as substandard at June 30, 2020. There were no loans classified as doubtful at March 31, 2021 or June 30, 2020.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2021 and 2020 (continued)

Non-interest Income

The $166,000 increase in non-interest income for the three months ended March 31, 2021, compared to the prior year quarterly period, was primarily due to an increase of $332,000 in gain on sale of loans, a $76,000 loss on sale of real estate during the 2020 period compared to none for the 2021 period, and a $7,000 increase in other non-interest income, partially offset by a $219,000 gain on sale of securities during the 2020 period compared to none for the 2021 period, a decrease of $27,000 in service charges on deposit accounts, and a $3,000 decrease in income from bank owned life insurance. The $1.5 million increase in non-interest income for the nine months ended March 31, 2021 compared to the prior year nine month period was primarily due to an increase of $1.8 million in gain on sale of loans, and an increase of $15,000 in other non-interest income, partially offset by a $219,000 decrease in gain on sale of securities during the 2020 period compared to none for the 2021 period, a $90,000 decrease in service charges on deposit accounts, a $6,000 decrease in income from bank owned life insurance, and a $4,000 gain on sale of real estate during the 2020 period compared to none for the 2021 period. 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 $359,000 increase in non-interest expense for the three months ended March 31, 2021, compared to the same period in 2020, is primarily attributable to increases of $239,000 in compensation and benefits expense, $34,000 in occupancy and equipment expense, $32,000 in data processing expense, $31,000 in loan and collection expense, $30,000 in other non-interest expenses, and $23,000 in deposit insurance premiums expense. The increases were partially offset by decreases of $22,000 in legal fees, $6,000 in franchise and bank shares tax expense, and $2,000 in audit and examination fees.  The $1.3 million increase in non-interest expense for the nine months ended March 31, 2021, compared to the same nine month period in 2020, is primarily attributable to increases of $895,000 in compensation and benefits expense, $200,000 in real estate owned valuation adjustment expense, $136,000 in data processing expense, $91,000 in deposit insurance premium expense, $76,000 in occupancy and equipment expense, $43,000 in other non-interest expenses, $40,000 in loan and collection expense, and $13,000 in audit and examination fees expense, partially offset by decreases of $139,000 in advertising expense, $46,000 in franchise and bank shares tax expense, and $21,000 in legal fees.

The aggregate compensation expense recognized by the Company for its Stock Option, Share Award, ESOP, and Recognition and Retention Plans amounted to $139,000 and $473,000 for the three and nine months ended March 31, 2021, respectively, compared to $140,000 and $561,000 for three and nine months ended March 31, 2020, respectively.

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings.  For the three and nine months ended March 31, 2021, the Company recognized franchise and bank shares tax expense of $105,000 and $302,000, respectively, compared to $111,000 and $348,000, respectively, for the same periods in 2020.

Income Taxes

Income taxes amounted to $395,000 and $1.1 million for the three and nine months ended March 31, 2021, respectively, resulting in an effective tax rate of 21.8% and 21.4%, respectively. Income taxes amounted to $264,000 and $690,000 for the three and nine months ended March 31, 2020, respectively, resulting in an effective tax rate of 21.3% and 19.7%, respectively.

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2021 and 2020 (continued)

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

	Three Months Ended March 31,
	2021							2020
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	359,414	$	4,853		5.48	%	$	327,521	$	4,378		5.36	%
Investment securities		66,428		308		1.88			73,229		401		2.20
Interest-earning deposits		84.661		34		0.16			29.700		95		1.28
Total interest-earning assets	$	510,503		5,195		4.13	%	$	430,450		4,874		4.54	%
Non-interest-earning assets		33,938							28,494
Total assets	$	544,441						$	458,944
Interest-bearing liabilities:
Savings accounts	$	115,788		131		0.46	%	$	70,123		226		1.29	%
NOW accounts		45,920		19		0.17			32,505		45		0.56
Money market accounts		77,451		45		0.24			72,781		185		1.02
Certificate accounts		132,423		528		1.62			164,786		842		2.05
Total interest-bearing deposits		371,582		723		0.79			340,195		1,298		1.53
Other Borrowings		2,399		19		3.21			1,591		19		4.67
FHLB advances		879		11		5.07			1,160		14		5.01
Total interest-bearing liabilities	$	374,860		753		0.81	%	$	342,946		1,331		1.56	%
Non-interest-bearing liabilities:
Non-interest-bearing demand accounts		115,396							64,869
Other liabilities		2,433							1,709
Total liabilities		492,689							409,524
Total Stockholders’ Equity(1)		51,752							49,420
Total liabilities and equity	$	544,441						$	458,944
Net interest-earning assets	$	135,643						$	87,504
Net interest income; average interest rate spread(2)			$	4,442		3.31	%			$	3,543		2.98	%
Net interest margin(3)						3.53	%						3.30	%
Average interest-earning assets to average interest-bearing liabilities						136.18	%						125.52	%

 __________________

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

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

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

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2021 and 2020 (continued)

	Nine Months Ended December 31,
	2021							2020
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	371,247	$	14,574		5.23	%	$	331,827	$	13,662		5.46	%
Investment securities		62,039		910		1.95			70,336		1,218		2.30
Interest-earning deposits		71,087		76		0.14			23,590		324		1.82
Total interest-earning assets	$	504,373		15,560		4.11	%	$	425,753		15,204		4.74	%
Non-interest-earning assets		32,781							27,772
Total assets	$	537,154						$	453,525
Interest-bearing liabilities:
Savings accounts	$	102,642		442		0.57	%	$	58,604		540		1.22	%
NOW accounts		43,360		75		0.23			31,713		144		0.60
Money market accounts		74,629		185		0.33			74,192		644		1.15
Certificate accounts		145,450		1,869		1.71			170,192		2,664		2.08
Total interest bearing deposits		366,081		2,571		0.94			334,701		3,992		1.59
Other Borrowings		2,062		50		3.23			997		36		4.78
FHLB advances		941		34		4.81			1,234		44		4.72
Total interest-bearing liabilities	$	369,084		2,655		0.96	%	$	336,932		4,072		1.61	%
Non-interest-bearing liabilities:
Non-interest-bearing demand accounts		113,897							64,831
Other liabilities		3,239							2,219
Total liabilities		486,220							403,982
Total Stockholders’ Equity(1)		50,934							49,543
Total liabilities and equity	$	537,154						$	453,525
Net interest-earning assets	$	135,289						$	88,821
Net interest income; average interest rate spread(2)			$	12,905		3.15	%			$	11,132		3.13	%
Net interest margin(3)						3.41	%						3.47	%
Average interest-earning assets to average  interest-bearing liabilities						136.66	%						126.36	%

__________________

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

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

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

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Comparison of Operating Results for the Three and Nine Month Periods Ended March 31, 2021 and 2020 (continued)

Liquidity and Capital Resources

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

Home Federal Bank’s primary sources of funds are deposits, amortization and prepayment of loans and mortgage-backed securities, maturities of investment securities and other short-term investments, loan sales, and earnings and funds provided from operations.  While scheduled principal repayments on loans and mortgage-backed securities are a relatively predictable source of funds, deposit flows and loan prepayments are greatly influenced by general interest rates, economic conditions, and competition.  The Bank sets the interest rates on its deposits to maintain a desired level of total deposits.  In addition, Home Federal Bank invests excess funds in short-term interest-earning accounts and other assets which provide liquidity to meet lending requirements.  Home Federal Bank’s deposit accounts with the Federal Home Loan Bank of Dallas amounted to $46.5 million at March 31, 2021.

A significant portion of Home Federal Bank’s liquidity consists of securities classified as available-for-sale and cash and cash equivalents.   Home Federal Bank’s primary sources of cash are net income, principal repayments on loans and mortgage-backed securities, and increases in deposit accounts.  If Home Federal Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas which provides an additional source of funds.  At March 31, 2021, Home Federal Bank had $876,000 in advances from the Federal Home Loan Bank of Dallas and had $187.6 million in additional borrowing capacity.  Additionally, at March 31, 2021, 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 $20.4 million. There were no amounts purchased under this agreement as of March 31, 2021. In addition, the Company had available a $5.0 million line of credit agreement at March 31, 2021 with First National Bankers Bank. At March 31, 2021 there was a $1.6 million balance in the credit line.

At March 31, 2021, Home Federal Bank had outstanding loan commitments of $64.5 million to originate loans and commitments under unused lines of credit of $8.6 million. At March 31, 2021, certificates of deposit scheduled to mature in less than one year totaled $75.9 million.Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal in a rising interest rate environment.  Home Federal Bank intends to utilize its high levels of liquidity to fund its lending activities.  If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale, as needed.

At March 31, 2021, 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 9.69%, 15.97%, 9.69%, and 17.2%, respectively.

Off-Balance Sheet Arrangements

At March 31, 2021, the Company did not have any off-balance sheet arrangements as defined by Securities and Exchange Commission rules.

Impact of Inflation and Changing Prices

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

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

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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.

In addition to factors previously disclosed in the reports filed by the Company with the Securities and Exchange Commission and those identified elsewhere in this Form 10-Q, the following factors, among others, could cause actual results to differ materially from forward-looking statements or historical performance: the strength of the United States economy in general and the strength of the local economies in which the Company conducts its operations; general economic conditions; the scope and duration of the COVID-19 pandemic; the effects of the COVID-19 pandemic, including on the Company’s credit quality and operations as well as its impact on general economic conditions; legislative and regulatory changes including actions taken by governmental authorities in response to the COVID-19 pandemic; monetary and fiscal policies of the federal government; changes in tax policies, rates and regulations of federal, state and local tax authorities including the effects of the Tax Reform Act; changes in interest rates, deposit flows, the cost of funds, demand for loan products and the demand for financial services, in each case as may be affected by the COVID-19 pandemic, competition, changes in the quality or composition of the Company’s loans, investment and mortgage-backed securities portfolios; geographic concentration of the Company’s business; fluctuations in real estate values; the adequacy of loan loss reserves; the risk that goodwill and intangibles recorded in the Company’s financial statements will become impaired; changes in accounting principles, policies or guidelines and other economic, competitive, governmental and technological factors affecting the Company’s operations, markets, products, services and fees.

ITEM 3.QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

Not applicable.

ITEM 4.CONTROLS AND PROCEDURES

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

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

PART II

ITEM 1.LEGAL PROCEEDINGS

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

ITEM 1A.RISK FACTORS

Not applicable.

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 (split adjusted) made during the quarter ended March 31, 2021 are set forth in the table below, including stock-for-stock option exercises:

Period	Total Number of Shares Purchased		Average Price Paid per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs		Maximum Number of Shares that May Yet Be Purchased Under the Plans or Programs (a)
January 1, 2021 – January 31, 2021		--	$	--		--		170,000
February 1, 2020 – February 28, 2021		--		--		--		170,000
March 1, 2020 – March 31, 2021		16,000		15.27		16,000		154,000
Total		16,000	$	15.27		16,000		154,000

______________

Notes to this table:

(a) On November 18, 2020, the Company announced that its Board of Directors approved a tenth stock repurchase program for the repurchase of up to 170,000 shares (split adjusted), or approximately 5.0% of its then outstanding shares of common stock. The repurchase program does not have an expiration date.

ITEM 3.DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4.MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5.OTHER INFORMATION

Not applicable.

ITEM 6.EXHIBITS

No.		Description
31.1		Rule 13a-14(a)/15d-14(a) Certification of 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

38

SIGNATURES

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

	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Date:  May 14, 2021	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, Chairman of the Board, President and Chief Executive Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana;

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

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

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

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

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

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

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

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

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

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

Date: May 14, 2021	/s/James R. Barlow
	James R. Barlow Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Glen W. Brown, Senior Vice President and Chief Financial Officer, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Home Federal Bancorp, Inc. of Louisiana;

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

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

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

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

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

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

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

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

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

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

Date: May 14, 2021	/s/Glen W. Brown
	Glen W. Brown Secior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

EX-32.0

Exhibit 32.0

SECTION 1350 CERTIFICATIONS

The undersigned executive officers of Home Federal Bancorp, Inc. of Louisiana (the “Registrant”) hereby certify that the Registrant's Form 10-Q for the quarter ended March 31, 2021 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date: May 14, 2021		/s/James R. Barlow
	Name: Title:	James R. Barlow Chairman of the Board, President and Chief Executive Officer (Principal Executive Officer)

Date: May 14, 2021		/s/Glen W. Brown
	Name: Title:	Glen W. Brown Senior Vice President and Chief Financial Officer (Principal Financial and Accounting Officer)

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

XML

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2021	May 13, 2021
Cover [Abstract]
Entity Registrant Name	Home Federal Bancorp, Inc. of Louisiana
Entity Central Index Key	0001500375
Current Fiscal Year End Date	--06-30
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2021
Document Fiscal Year Focus	2021
Document Fiscal Period Focus	Q3
Entity Address, State or Province	LA
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Small Business	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		3,358,566

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $91,167 and $50,417 March 31, 2021 and June 30, 2020, Respectively)	$ 100,971	$ 54,871
Securities Available-for-Sale	28,565	42,060
Securities Held-to-Maturity (Fair Value of $41,731 and $21,879, Respectively)	41,802	20,858
Loans Held-for-Sale	22,254	14,798
Loans Receivable, Net of Allowance for Loan Losses of $4,387 and $4,081, Respectively	342,313	359,927
Accrued Interest Receivable	1,273	1,860
Premises and Equipment, Net	14,814	13,235
Bank Owned Life Insurance	7,185	7,087
Deferred Tax Asset	1,002	757
Foreclosed Assets	1,258	950
Other Assets	1,823	1,817
Total Assets	563,260	518,220
Deposits:
Non-interest bearing	129,305	103,422
Interest-bearing	376,091	357,388
Total Deposits	505,396	460,810
Advances from Borrowers for Taxes and Insurance	385	522
Short-term Federal Home Loan Bank Advances	35	193
Long-term Federal Home Loan Bank Advances	841	867
Other Borrowings	1,600	2,300
Other Accrued Expenses and Liabilities	2,861	2,993
Total Liabilities	511,118	467,685
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; 3,369,966 and 3,449,024 Shares Issued and Outstanding (split adjusted) at March 31, 2021 and June 30, 2020, Respectively	34	22
Additional Paid-in Capital	37,116	36,531
Unearned ESOP Stock	(783)	(870)
Retained Earnings	15,508	13,937
Accumulated Other Comprehensive Income	267	915
Total Stockholders' Equity	52,142	50,535
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 563,260	$ 518,220

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
ASSETS
Interest-Bearing Deposits with Other Banks	$ 91,167	$ 50,417
Securities Held-to-Maturity, Fair Value	41,731	21,879
Loans Receivable, Allowance for Loan Losses	$ 4,387	$ 4,081
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)	3,369,966	3,449,024
Common Stock, Outstanding (in shares)	3,369,966	3,449,024

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
INTEREST INCOME
Loans, Including Fees	$ 4,853	$ 4,378	$ 14,574	$ 13,662
Investment Securities	1	12	5	43
Mortgage-Backed Securities	307	401	905	1,218
Other Interest-Earning Assets	34	83	76	281
Total Interest Income	5,195	4,874	15,560	15,204
INTEREST EXPENSE
Deposits	723	1,298	2,571	3,992
Other Borrowings	19	19	50	36
Federal Home Loan Bank Borrowings	11	14	34	44
Total Interest Expense	753	1,331	2,655	4,072
Net Interest Income	4,442	3,543	12,905	11,132
PROVISION FOR LOAN LOSSES	450	316	1,750	1,441
Net Interest Income after Provision for Loan Losses	3,992	3,227	11,155	9,691
NON-INTEREST INCOME
Gain on Sale of Loans	936	604	3,553	1,751
Gain on Sale of Real Estate	0	(76)	0	4
Gain on Sale of Securities	0	219	0	219
Income on Bank Owned Life Insurance	31	34	99	105
Service Charges on Deposit Accounts	231	258	731	821
Other Income	15	8	43	28
Total Non-Interest Income	1,213	1,047	4,426	2,928
NON-INTEREST EXPENSE
Compensation and Benefits	2,200	1,961	6,552	5,657
Occupancy and Equipment	387	353	1,157	1,081
Data Processing	176	144	571	435
Audit and Examination Fees	49	51	178	165
Franchise and Bank Shares Tax	105	111	302	348
Advertising	45	45	118	257
Legal Fees	91	113	355	376
Loan and Collection	89	58	266	226
Deposit Insurance Premium	35	12	103	12
Valuation Adjustment Real Estate Owned	0	0	200	0
Other Expense	215	185	603	560
Total Non-Interest Expense	3,392	3,033	10,405	9,117
Income Before Income Taxes	1,813	1,241	5,176	3,502
PROVISION FOR INCOME TAX EXPENSE	395	264	1,108	690
Net Income	$ 1,418	$ 977	$ 4,068	$ 2,812
EARNINGS PER COMMON SHARE:
Basic (in dollars per share)	$ 0.44	$ 0.29	$ 1.26	$ 0.83
Diluted (in dollars per share)	0.41	0.27	1.20	0.77
DIVIDENDS DECLARED (in dollars per share)	$ 0.08	$ 0.08	$ 0.25	$ 0.24

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net Income	$ 1,418	$ 977	$ 4,068	$ 2,812
Investment securities available-for-sale:
Net unrealized (Losses) Gains	(488)	989	(819)	875
Income Tax Effect	102	(208)	171	(184)
Reclassification adjustments for net (gains) losses realized in net income	0	(219)	0	(219)
Income tax effect	0	46	0	46
Other Comprehensive (Loss) Income	(386)	608	(648)	518
Total Comprehensive Income	$ 1,032	$ 1,585	$ 3,420	$ 3,330

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - 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, 2019	$ 23	$ 35,914	$ (985)	$ 0	$ 15,370	$ 20	$ 50,342
Net Income	0	0	0	0	2,812	0	2,812
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	518	518
Share Awards Earned	0	153	0	0	0	0	153
RRP Shares Earned	0	24	0	0	0	0	24
Stock Options Vested	0	103	0	0	0	0	103
Common Stock Issuance for Stock Option Exercises - Split Adjusted	0	65	0	0	0	0	65
ESOP Compensation Earned	0	195	86	0	0	0	281
Company Stock Purchased	0	0	0	0	(3,779)	0	(3,779)
Dividends Declared	0	0	0	0	(865)	0	(865)
Ending Balance at Mar. 31, 2020	23	36,454	(899)	0	13,538	538	49,654
Beginning Balance at Dec. 31, 2019	23	36,327	(927)	0	14,621	(70)	49,974
Net Income	0	0	0	0	977	0	977
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	608	608
Share Awards Earned	0	19	0	0	0	0	19
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 - Split Adjusted	0	15	0	0	0	0	15
ESOP Compensation Earned	0	59	28	0	0	0	87
Company Stock Purchased	0	0	0	0	(1,774)	0	(1,774)
Dividends Declared	0	0	0	0	(286)	0	(286)
Ending Balance at Mar. 31, 2020	23	36,454	(899)	0	13,538	538	49,654
Beginning Balance at Jun. 30, 2020	22	36,531	(870)	0	13,937	915	50,535
Net Income	0	0	0	0	4,068	0	4,068
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	(648)	(648)
Share Awards Earned	0	153	0	0	0	0	153
RRP Shares Earned	0	0	0	0	0	0	0
Stock Split	12	(12)	0	0	0	0	0
Stock Options Vested	0	81	0	0	0	0	81
Common Stock Issuance for Stock Option Exercises - Split Adjusted	0	219	0	0	0	0	219
ESOP Compensation Earned	0	144	87	0	0	0	231
Company Stock Purchased	0	0	0	0	(1,653)	0	(1,653)
Dividends Declared	0	0	0	0	(844)	0	(844)
Ending Balance at Mar. 31, 2021	34	37,116	(783)	0	15,508	267	52,142
Beginning Balance at Dec. 31, 2020	22	36,981	(812)	0	14,618	653	51,462
Net Income	0	0	0	0	1,418	0	1,418
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects	0	0	0	0	0	(386)	(386)
Share Awards Earned	0	19	0	0	0	0	19
RRP Shares Earned	0	0	0	0	0	0	0
Stock Split	12	(12)	0	0	0	0	0
Stock Options Vested	0	26	0	0	0	0	26
Common Stock Issuance for Stock Option Exercises - Split Adjusted	0	44	0	0	0	0	44
ESOP Compensation Earned	0	58	29	0	0	0	87
Company Stock Purchased	0	0	0	0	(249)	0	(249)
Dividends Declared	0	0	0	0	(279)	0	(279)
Ending Balance at Mar. 31, 2021	$ 34	$ 37,116	$ (783)	$ 0	$ 15,508	$ 267	$ 52,142

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 1,418	$ 977	$ 4,068	$ 2,812
Adjustments to Reconcile Net Income to Net Cash (Used in) Provided by Operating Activities
Bad Debt Recovery			202	8
Federal Home Loan Bank Stock Certificate			(5)	(43)
Net Amortization and Accretion on Securities			101	70
(Gain) Loss on Sale of Real Estate			0	(4)
Gain on Sale of Loans	(936)	(604)	(3,553)	(1,751)
Gain on Sale of Securities	0	(219)	0	(219)
Amortization of Deferred Loan Fees			(1,157)	(107)
Depreciation of Premises and Equipment			495	487
ESOP Expense			231	281
Stock Option Expense			81	103
Recognition and Retention Plan Expense			0	2
Deferred Income Tax			(245)	61
Valuation Adjustment Real Estate Owned	0	0	200	0
Provision for Loan Losses	450	316	1,750	1,441	$ 1,891
Increase in Cash Surrender Value on Bank Owned Life Insurance	(31)	(34)	(99)	(105)
Share Awards Expense			94	111
Changes in Assets and Liabilities:
Loans Held-for-Sale - Originations and Purchases			(159,954)	(75,089)
Loans Held-for-Sale - Sale and Principal Repayments			156,051	74,970
Accrued Interest Receivable			587	100
Other Operating Assets			(6)	(114)
Other Operating Liabilities			(132)	(86)
Net Cash (Used in) Provided by Operating Activities			(1,291)	2,928
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections			15,830	3,284
Deferred Loan Fees Collected			560	120
Acquisition of Premises and Equipment			(2,074)	(701)
Proceeds from Sale of Real Estate			0	2,343
Activity in Available-for-Sale Securities:
Principal Payments on Mortgage-Backed Securities			17,695	8,991
Sale of Securities			0	9,856
Purchases of Securities			(5,077)	(21,250)
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities			4,487	3,785
Sale/Redemptions of Securities			2,437	0
Purchase of Securities			(27,907)	(245)
Net Cash Provided by Investing Activities			5,951	6,183
CASH FLOWS FROM FINANCING ACTIVITIES
Net Increase in Deposits			44,586	17,900
Repayments of Advances from Federal Home Loan Bank			(184)	(220)
Proceeds from Other Borrowings			1,800	1,800
Repayments of Other Borrowings			(2,500)	(450)
Net Decrease in Advances from Borrowers for Taxes and Insurance			(137)	(211)
Dividends Paid			(844)	(865)
Company Stock Purchased			(1,653)	(3,779)
Proceeds from Stock Options Exercised			219	65
Plan Share Distributions			153	153
Net Cash Provided by Financing Activities			41,440	14,393
NET INCREASE IN CASH AND CASH EQUIVALENTS			46,100	23,504
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			54,871	18,108	18,108
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 100,971	$ 41,612	100,971	41,612	$ 54,871
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds			2,680	3,002
Income Taxes Paid			925	760
Market Value Adjustment for (Loss)/Gain on Debt Securities Available-for-Sale			$ (819)	$ 656

XML

Summary of Accounting Policies

9 Months Ended

Mar. 31, 2021

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies

1. Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2021 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2021.

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

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2021.  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 March 31, 2021, 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

Securities are being accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320’s, Investments whichrequires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity.  Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically.

Investments in non-marketable 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 cost, adjusted for amortization of the related premiums, and accretion of discounts, using the interest method.  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 debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of March 31, 2021 and June 30, 2020.

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 Company 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 $118,000 and $257,000 for the nine months ended March 31, 2021 and 2020, respectively.

In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.  For the nine months ended March 31, 2021 and 2020, the Company did not incur any amount of direct-response advertising.

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.

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 debt 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 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, 2022, 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 December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)." The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improved the consistent application of and simplified GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in the ASU are effective for fiscal years and interim periods beginning after December 15, 2020. The Company does not expect the adoption of this ASU to impact the consolidated financial statements.

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Securities

9 Months Ended

Mar. 31, 2021

Securities [Abstract]

Securities

2. Securities

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

	March 31, 2021
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	2,161	$	47	$	--	$	2,208
FNMA Mortgage-Backed Certificates		19,238		550		--		19,788
GNMA Mortgage-Backed Certificates		6,827		1		259		6,569
Debt Securities
Total Debt Securities		28,226		598		259		28,565
Total Securities Available-for-Sale	$	28,226	$	598	$	259	$	28,565
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	787	$	16	$	--	$	803
FNMA Mortgage-Backed Certificates		4,955		--		104		4,851
FHLMC Mortgage-Backed Certificates		34,167		639		622		34,184
Total Debt Securities		39,909		655		726		39,838
Municipals		1,366		--		--		1,366
Equity Securities (Non-Marketable)
2,766 Shares – Federal Home Loan Bank		277		--		--		277
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		527		--		--		527
Total Securities Held-to-Maturity	$	41,802	$	655	$	726	$	41,731

	June 30, 2020
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	5,018	$	141	$	--	$	5,159
FNMA Mortgage-Backed Certificates		30,820		1,032		--		31,852
GNMA Mortgage-Backed Certificates		5,064		23		38		5,049
Total Debt Securities		40,902		1,196		38		42,060
Total Securities Available-for-Sale	$	40,902	$	1,196	$	38	$	42,060
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Securities	$	1,109	$	20	$	--	$	1,129
FNMA Mortgage-Backed Securities		16,546		997		--		17,543
Total Debt Securities		17,655		1,017		--		18,672
Municipals		243		4		--		247
Equity Securities (Non-Marketable)
27,094 Shares – Federal Home Loan Bank		2,710		--		--		2,710
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,960		--		--		2,960
Total Securities Held-to-Maturity	$	20,858	$	1,021	$	--	$	21,879

The amortized cost and fair value of securities by contractual maturity at March 31, 2021 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	629	$	617	$	--	$	--
One through Five Years		5,815		5,979		--		--
After Five through Ten Years		16,898		17,307		--		--
Over Ten Years		4,884		4,662		39,909		39,838
		28,226		28,565		39,909		39,838
Municipals
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		--		--		241		241
After Five through Ten Years		--		--		--		--
Over Ten Years		--		--		1,125		1,125
		--		--		1,366		1,366
Other Equity Securities		--		--		527		527
Total	$	28,226	$	28,565	$	41,802	$	41,731

Securities available-for-sale totaling $5.1 million were purchased during the nine months ending March 31, 2021.  Securities held-to-maturity totaling $27.9 million were purchased during the nine months ending March 31, 2021.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2021 and June 30, 2020 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2021
	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	$	222	$	4,662	$	37	$	1,856
Total Securities Available-for-Sale	$	222	$	4,662	$	37	$	1,856

	June 30, 2020
	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	$	--	$	--	$	38	$	2,816
Total Securities Available-for-Sale	$	--	$	--	$	38	$	2,816

The unrealized losses on the Company’s investment in mortgage-backed securities at March 31, 2021 and June 30, 2020 were caused by interest rate changes.  The contractual cash flows of these investments are guaranteed by agencies of the U.S. Government.  Accordingly, it is expected that these securities would not be settled at a price less than the amortized cost of the Company’s investment.  Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2021.

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

At March 31, 2021, securities with a carrying value of $1.1 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $187.6 million were pledged to secure FHLB advances.

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Loans Receivable

9 Months Ended

Mar. 31, 2021

Loans Receivable [Abstract]

Loans Receivable

3. Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2021			June 30, 2020
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	99,480		$	108,146
Commercial		93,282			87,088
Multi-Family Residential		45,241			47,432
Land		16,690			18,068
Construction		11,305			8,159
Equity and Second Mortgage		1,289			1,410
Equity Lines of Credit		9,488			12,252
Total Mortgage Loans		276,775			282,555
Commercial Loans		69,789			81,909
Consumer Loans
Loans on Savings Accounts		458			364
Other Consumer Loans		518			615
Total Consumer Other Loans		976			979
Total Loans		347,540			365,443
Less:  Allowance for Loan Losses		(4,387	)		(4,081	)
Unamortized Loan Fees		(840	)		(1,435	)
Net Loans Receivable	$	342,313		$	359,927

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

	Nine Months Ended March 31,
	2021			2020
	(In Thousands)
Balance - Beginning of Period	$	4,081		$	3,452
Provision for Loan Losses		1,750			1,441
Loan Charge-Offs		(1,646	)		(1,118	)
Recoveries		202			8
Balance - End of Period	$	4,387		$	3,783

Credit Quality Indicators

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

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

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

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

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

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

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

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

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	98,876	$	359	$	245	$		$	99,480
Commercial		90,193		--		3,089		--		93,282
Multi-Family Residential		45,241		--		--		--		45,241
Land		16,690		--		--		--		16,690
Construction		11,305		--		--		--		11,305
Equity and Second Mortgage		1,289		--		--		--		1,289
Equity Lines of Credit		9,488		--		--		--		9,488
Commercial Loans		69,789		--		--		--		69,789
Consumer Loans		976		--		--		--		976
Total	$	343,847	$	359	$	3,334	$	--	$	347,540

June 30, 2020	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	106,886	$	475	$	785	$	--	$	108,146
Commercial		83,376		1,915		1,797		--		87,088
Multi-Family Residential		47,432		--		--		--		47,432
Land		15,087		--		2,981		--		18,068
Construction		8,159		--		--		--		8,159
Equity and Second Mortgage		1,410		--		--		--		1,410
Equity Lines of Credit		12,235		17		--		--		12,252
Commercial Loans		81,452		--		457		--		81,909
Consumer Loans		979		--		--		--		979
Total	$	357,016	$	2,407	$	6,020	$	--	$	365,443

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

The following tables present an aging analysis of past due loans, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	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	$	--	$	--	$	254	$	254	$	99,226	$	99,480	$	--
Commercial		--		--		1,183		1,183		92,099		93,282		--
Multi-Family Residential		--		--		--		--		45,241		45,241		--
Land		--		--		--		--		16,690		16,690		--
Construction		--		--		--		--		11,305		11,305		--
Equity and Second Mortgage		--		--		--		--		1,289		1,289		--
Equity Lines of Credit		29		--		--		29		9,459		9,488		--
Commercial Loans		--		--		--		--		69,789		69,789		--
Consumer Loans		--		--		--		--		976		976		--
Total	$	29	$	--	$	1,437	$	1,466	$	346,074	$	347,540	$	--

June 30, 2020	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	$	1,312	$	557	$	1,003	$	2,872	$	105,274	$	108,146	$	319
Commercial		--		--		1,797		1,797		85,291		87,088		--
Multi-Family Residential		--		--		--		--		47,432		47,432		--
Land		--		--		2,981		2,981		15,087		18,068		--
Construction		--		--		--		--		8,159		8,159		--
Equity and Second Mortgage		--		--		--		--		1,410		1,410		--
Equity Lines of Credit		--		--		--		--		12,252		12,252		--
Commercial Loans		--		--		457		457		81,452		81,909		--
Consumer Loans		--		--		--		--		979		979		--
Total	$	1,312	$	557	$	6,238	$	8,107	$	357,336	$	365,443	$	319

There was no interest income recognized on non-accrual loans during the nine months ended March 31, 2021 or year ended June 30, 2020. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the nine months ended March 31, 2021 and the year ended June 30, 2020 was approximately $53,000 and $464,000, respectively.

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2021 and year ended June 30, 2020 was as follows:

	Real Estate Loans
March 31, 2021	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	$	966		$	568		$	364	$	1,024		$	80	$	126	$	949		$	4	$	4,081
Charge-Offs		(41	)		(698	)		--		(907	)		--		--		--			--		(1,646	)
Recoveries		3			--			--		120			--		5		74			--		202
Current Provision		128			1,494			306		224			50		34		(486	)		--		1,750
Ending Balances	$	1,056		$	1,364		$	670	$	461		$	130	$	165	$	537		$	4	$	4,387
Evaluated for Impairment:
Individually		--			411			--		--			--		--		--			--		411
Collectively		1,056			953			670		461			130		165		537			4		3,976
Loans Receivable:
Ending Balances – Total	$	99,480		$	93,282		$	45,241	$	16,690		$	11,305	$	10,777	$	69,789		$	976	$	347,540
Ending Balances:
Evaluated for Impairment:
Individually		--			3,089			--		--			--		--		--			--		3,089
Collectively	$	99,480		$	90,193		$	45,241	$	16,690		$	11,305	$	10,777	$	69,789		$	976	$	344,451

	Real Estate Loans
June 30, 2020	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		(40	)		(100	)		--		--		--			(107	)		(1,135	)		--		(1,382	)
Recoveries		2			--			--		--		--			9			109			--		120
Current Provision		(13	)		160			26		924		(35	)		80			748			1		1,891
Ending Balances	$	966		$	568		$	364	$	1,024	$	80		$	126		$	949		$	4	$	4,081
Evaluated for Impairment:
Individually		34			23			--		907		--			--			--			--		964
Collectively		932			545			364		117		80			126			949			4		3,117
Loans Receivable:
Ending Balances – Total	$	108,146		$	87,088		$	47,432	$	18,068	$	8,159		$	13,662		$	81,909		$	979	$	365,443
Ending Balances:
Evaluated for Impairment:
Individually		1,260			3,712			--		2,981		--			17			457			--		8,427
Collectively	$	106,886		$	83,376		$	47,432	$	15,087	$	8,159		$	13,645		$	81,452		$	979	$	357,016

The following table’s present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	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	$	604	$	604	$	--	$	604	$	--	$	607
Commercial		3,089		775		2,314		3,089		411		3,496
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	3,693	$	1,379	$	2,314	$	3,693	$	411	$	4,103

June 30, 2020	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,260	$	1,260	$	--	$	1,260	$	--	$	1,271
Commercial		3,712		3,712		--		3,712		--		5,108
Multi-Family Residential		--		--		--		--		--		--
Land		2,981		--		2,981		2,981		907		2,981
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		17		17		--		17		--		17
Commercial Loans		457		457		--		457		--		457
Consumer Loans		--		--		--		--		--		--
Total	$	8,427	$	5,446	$	2,981	$	8,427	$	907	$	9,834

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

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

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

	March 31, 2021
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial real estate	$	--	$	1,183	$	1,183	$	1,183
	June 30, 2020
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial business	$	--	$	457	$	457	$	457
1-4 Family Residential		--		76		76		76
Commercial real estate		--		1,797		1,797		1,797

For purposes of the determination of an allowance for loan losses on these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology.  If it is determined losses are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans.  As of March 31, 2021, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.

Loan Modifications/Troubled Debt Restructurings. Under the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19 that would otherwise be categorized as a troubled debt restructuring (“TDR”), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes. Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either January 1, 2022 or the 60^th day after the end of the COVID-19 national emergency. Home Federal Bank has made that election. Similarly, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current prior to any relief will not be considered TDRs.

Prior to the enactment of the CARES Act, the banking regulatory agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under Section 4013 of the CARES Act.

The Bank handles loan payment modification requests on a case-by-case basis considering the effects of the COVID-19 pandemic, related economic slow-down and stay-at-home orders on our customer and their current and projected cash flows through the term of the loan. Through March 31, 2021, we modified 3 loans with principal balances totaling $5.0 million representing 1.4% of our loans outstanding as of March 31, 2021. A majority of deferrals are three-month payment deferrals of principal and interest, with payments after deferral  increased to collect amounts deferred. It is too early to determine if these modified loans will perform in accordance with their modified terms.

Details with respect to actual loan modifications are as follows:

	Number of Covid-19 Remaining Deferments at March 31, 2021		Balance (in thousands)		Percent of Total Loans at March 31, 2021
One-to-Four family residential		1	$	2,237		2.2	%
Commercial real estate		1		2,553		2.7
Multi-family residential		--		--		--
Land		--		--		--
Construction		--		--		--
Equity and second mortgage		--		--		--
Equity lines of credit		1		180		1.9
Commercial business		--		--		--
Consumer		--		--		--
Total		3	$	4,970		1.4	%

	Number of Covid-19 Deferments Year Ended June 30, 2020		Balance (in thousands)		Percent of Total Loans at June 30, 2020
One-to-Four family residential		101	$	27,705		25.6	%
Commercial real estate		40		28,278		32.5
Multi-family residential		9		18,046		38.0
Land		7		1,190		6.6
Construction		1		680		8.3
Equity and second mortgage		--		--		--
Equity lines of credit		19		1,586		12.9
Commercial business		39		6,609		8.1
Consumer		--		--		--
Total		216	$	84,094		23.0	%

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Deposits

9 Months Ended

Mar. 31, 2021

Deposits [Abstract]

Deposits

4. Deposits

Deposits at March 31, 2021 and June 30, 2020 consist of the following classifications:

	March 31, 2021		June 30, 2020
	(In Thousands)
Non-Interest Bearing	$	129,305	$	103,422
NOW Accounts		46,538		41,365
Money Markets		81,362		74,637
Passbook Savings		122,956		83,797
		380,161		303,221
Certificates of Deposit		125,235		157,589
Total Deposits	$	505,396	$	460,810

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Earnings Per Share

9 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

Home Federal Bank announced that its Board of Directors declared a two-for-one stock split in the form of a 100% stock dividend, payable March 31, 2021, to stockholders of record as of March 22, 2021. Under the terms of the stock split, the Company’s stockholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Company. The par value of the Company's stock was not affected by the split and will remain at $0.01 per share. The outstanding shares of stock after the split increased from approximately 1.7 million shares to 3.4 million shares. The Company’s most recent quarterly cash dividend was $0.165 per share payable on February 15, 2021. The Board of Directors maintained a similar level of total cash dividends to shareholders post-split and declared a quarterly cash dividend of $0.0825 per share on April 21, 2021, payable on May 17, 2021 to shareholders of record at the close of business on May 3, 2021.

Basic earnings per common share are computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three and nine months ended March 31, 2021 and 2020 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
	(In Thousands, Except Per Share Data)
Net income	$	1,418	$	977	$	4,068	$	2,812
Weighted average shares outstanding – basic		3,219		3,364		3,238		3,406
Effect of dilutive common stock equivalents		235		246		153		254
Adjusted weighted average shares outstanding – diluted		3,454		3,610		3,391		3,660
Basic earnings per share	$	0.44	$	0.29	$	1.26	$	0.83
Diluted earnings per share	$	0.41	$	0.27	$	1.20	$	0.77

For the three months ended March 31, 2021 and 2020, there were outstanding options to purchase 691,445 and 545,196 shares, respectively, at a weighted average exercise price of $9.94 and $9.03 per share, respectively and for the nine months ended March 31, 2021 and 2020, there were outstanding options to purchase 614,261 and 548,362 shares, respectively, at a weighted average exercise price of $9.94 and $9.03 per share, respectively. For the quarter ended March 31, 2021 and 2020, 235,171 options and 245,998 options, respectively, were included in the computation of diluted earnings per share. For the nine month period ended March 31, 2021 and 2020, 153,115 options and 253,654 options, respectively, were included in the computation of diluted earnings per share.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2021			2020
	(In Thousands)
Average common shares issued		6,124			6,124			6,124			6,124
Average unearned ESOP shares		(159	)		(182	)		(165	)		(188	)
Average unearned RRP shares		--			--			--			(2	)
Average Company stock purchased		(2,746	)		(2,578	)		(2,721	)		(2,528	)
Weighted average shares outstanding		3,219			3,364			3,238			3,406

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Stock-Based Compensation

9 Months Ended

Mar. 31, 2021

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6. Stock-Based Compensation

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 317,736 (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 866 outstanding options as of March 31, 2021 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 389,044.  Both incentive stock options and non-qualified stock options may be granted under the 2011 Option Plan.  On January 31, 2012 and July 31, 2014, 330,688 options and 58,356 options, respectively, were granted to directors and employees at an exercise price of $7.35 and $9.46 per share, respectively, under the 2011 Option Plan.  As of March 31, 2021, there were 778 stock options available for future grant under the 2011 Option Plan.

Incentive stock options and non-qualified stock options granted under the Option Plans become vested and exercisable at a rate of 20% per year over five years, commencing one year from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted.  No vesting shall occur after an employee’s employment or service as a director is terminated.  In the event of 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 Plan

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 300,000 shares, of which no more than 74,000 shares, or 25% of the plan, may be share rewards.  The balance of the plan is reserved for stock option awards which would total 225,000 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 69,000 plan share awards and 207,000 stock options to directors, officers, and other key employees vesting ratably over five years. On February 5, 2019, the Company granted a total of 6,000 plan share awards and 27,000 stock options (which includes 9,000 stock options forfeited from the October 26, 2015 grants) to key employees vesting ratably over five years.

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,” together with the 2014 Stock Incentive Plan, the “Stock Incentive Plans”) which provides for a total of 250,000 shares reserved for future issuance as stock awards or stock options. No more than 62,500 shares, or 25%, may be granted as stock awards.  The balance of the plan is reserved for stock option awards. On November 11, 2020, the Company granted a total of 62,500 plan share awards and 187,500 stock options to directors, officers and other key employees vesting ratably over five years. The Stock Incentive Plans costs are recognized over the five year vesting period.  As of March 31, 2021, there are no plan share awards or stock options available for future grants under the Stock Incentive Plans.

Compensation expense pertaining to the 2011 Recognition Plan and the share awards under the Stock Incentive Plans was approximately $153,000 and $177,000 for the nine months ended March 31, 2021 and 2020, respectively. For the nine months ended March 31, 2021 and 2020, compensation expense charged to operations for stock options granted under the 2011 Option Plan and the Stock Incentive Plans was $81,000 and $103,000, respectively.

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Related Party Transactions

9 Months Ended

Mar. 31, 2021

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 $3.3 million and $3.8 million at March 31, 2021 and June 30, 2020, respectively.

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Fair Value Disclosures

9 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Fair Value Disclosures

8. Fair Value Disclosures

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

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

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

Cash and Cash Equivalents

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

Investment Securities

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

Mortgage Loans Held-for-Sale

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

Loans Receivable

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

Deposit Liabilities

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

Advances from Federal Home Loan Bank

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

Off-Balance Sheet Credit-Related Instruments

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

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

At March 31, 2021 and June 30, 2020, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2021				June 30, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	100,971	$	100,971	$	54,871	$	54,871
Securities Available-for-Sale		28,565		28,565		42,060		42,060
Securities to be Held-to-Maturity		41,802		41,731		20,858		21,879
Loans Held-for-Sale		22,254		22,254		14,798		14,798
Loans Receivable		342,313		341,914		359,927	$	359,581
Financial Liabilities
Deposits	$	505,396	$	501,187	$	460,810	$	458,994
Advances from FHLB		876		940		1,060		1,150
Off-Balance Sheet Items
Mortgage Loan Commitments	$	8,555	$	8,555	$	8,536	$	8,536

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

The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures ("ASC 820").  ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements.  ASC 820 was issued to establish a uniform definition of fair value.  The definition of fair value is market-based as opposed to company-specific and includes the following:

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

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

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

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

• Expands disclosures about instruments that are measured at fair value.

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

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

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

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

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

The preceding methods described may produce a fair value calculation that may not be indicative of the net realizable value or reflective of future fair values.  Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date.  There have been no changes in the methodologies used during the nine months ended March 31, 2021.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2021 and June 30, 2020 are as follows:

	Fair Value Measurements Using:
March 31, 2021	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	$	--	$	2,208	$	--	$	2,208
FNMA		--		19,788		--		19,788
GNMA		--		6,569		--		6,569
Total	$	--	$	28,565	$	--	$	28,565

	Fair Value Measurements Using:
June 30, 2020	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	$	--	$	5,159	$	--	$	5,159
FNMA		--		31,852		--		31,852
GNMA		--		5,049		--		5,049
Total	$	--	$	42,060	$	--	$	42,060

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Leases

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Leases

9. Leases

A lease is defined as a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On July 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic 842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company is the lessee are comprised of real estate property for branches with terms extending through 2058. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s consolidated statements of condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities.

(In Thousands)		March 31, 2021		June 30, 2020
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	862	$	877
Total Lease Right-of-Use Assets		$	862	$	877
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	877	$	887
Total Lease Liabilities		$	877	$	887

The calculated amount of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability. Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception, on a collateralized basis, over a similar term. For operating leases existing prior to July 1, 2019, the rate for the remaining lease term as of July 1, 2019, was the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception.

	March 31, 2021	June 30, 2020
Weighted-average remaining lease term
Operating leases	37.7 years	38.4 years
Weighted-average discount rate
Operating leases	3.00%	3.00%

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Subsequent Events

9 Months Ended

Mar. 31, 2021

Subsequent Events [Abstract]

Subsequent Events

10. 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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Summary of Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2021

Summary of Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”).  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the nine month period ended March 31, 2021 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2021.

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

In accordance with the subsequent events topic of the ASC, the Company evaluates events and transactions that occur after the balance sheet date for potential recognition in the financial statements.  The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are recognized in the financial statements as of March 31, 2021.  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 March 31, 2021, 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

Securities are being accounted for in accordance with Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 320’s, Investments whichrequires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity.  Management determines the appropriate classification of debt securities at the time of purchase and re-evaluates this classification periodically.

Investments in non-marketable 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 cost, adjusted for amortization of the related premiums, and accretion of discounts, using the interest method.  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 debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of March 31, 2021 and June 30, 2020.

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 Company 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 $118,000 and $257,000 for the nine months ended March 31, 2021 and 2020, respectively.

In the event the Company incurs expense for material direct-response advertising, it will be amortized over the estimated benefit period.  Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in probable future benefits.  For the nine months ended March 31, 2021 and 2020, the Company did not incur any amount of direct-response advertising.

Stock-Based Compensation

Stock-Based Compensation

GAAP requires all share-based payments to employees, including grants of employee stock options and recognition and retention share awards, to be recognized as expense in the statement of operations based on their fair values.  The amount of compensation is measured at the fair value of the options or recognition and retention share awards when granted, and this cost is expensed over the required service period, which is normally the vesting period of the options or recognition and retention awards.

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 debt 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 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, 2022, 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 December 2019, the FASB issued ASU No. 2019-12, "Simplifying the Accounting for Income Taxes (Topic 740)." The amendments in this ASU simplified the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The amendments also improved the consistent application of and simplified GAAP for other areas of Topic 740 by clarifying and amending existing guidance. The amendments in the ASU are effective for fiscal years and interim periods beginning after December 15, 2020. The Company does not expect the adoption of this ASU to impact the consolidated financial statements.

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Summary of Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2021

Summary of Accounting Policies [Abstract]

Estimated Useful Lives

Estimated useful lives are as follows:

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

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Securities (Tables)

9 Months Ended

Mar. 31, 2021

Securities [Abstract]

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

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

	March 31, 2021
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	2,161	$	47	$	--	$	2,208
FNMA Mortgage-Backed Certificates		19,238		550		--		19,788
GNMA Mortgage-Backed Certificates		6,827		1		259		6,569
Debt Securities
Total Debt Securities		28,226		598		259		28,565
Total Securities Available-for-Sale	$	28,226	$	598	$	259	$	28,565
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	787	$	16	$	--	$	803
FNMA Mortgage-Backed Certificates		4,955		--		104		4,851
FHLMC Mortgage-Backed Certificates		34,167		639		622		34,184
Total Debt Securities		39,909		655		726		39,838
Municipals		1,366		--		--		1,366
Equity Securities (Non-Marketable)
2,766 Shares – Federal Home Loan Bank		277		--		--		277
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		527		--		--		527
Total Securities Held-to-Maturity	$	41,802	$	655	$	726	$	41,731

	June 30, 2020
Securities Available-for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	5,018	$	141	$	--	$	5,159
FNMA Mortgage-Backed Certificates		30,820		1,032		--		31,852
GNMA Mortgage-Backed Certificates		5,064		23		38		5,049
Total Debt Securities		40,902		1,196		38		42,060
Total Securities Available-for-Sale	$	40,902	$	1,196	$	38	$	42,060
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Securities	$	1,109	$	20	$	--	$	1,129
FNMA Mortgage-Backed Securities		16,546		997		--		17,543
Total Debt Securities		17,655		1,017		--		18,672
Municipals		243		4		--		247
Equity Securities (Non-Marketable)
27,094 Shares – Federal Home Loan Bank		2,710		--		--		2,710
630 Shares – First National Bankers Bankshares, Inc.		250		--		--		250
Total Equity Securities		2,960		--		--		2,960
Total Securities Held-to-Maturity	$	20,858	$	1,021	$	--	$	21,879

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities by contractual maturity at March 31, 2021 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(In Thousands)
Debt Securities
Within One Year or Less	$	629	$	617	$	--	$	--
One through Five Years		5,815		5,979		--		--
After Five through Ten Years		16,898		17,307		--		--
Over Ten Years		4,884		4,662		39,909		39,838
		28,226		28,565		39,909		39,838
Municipals
Within One Year or Less	$	--	$	--	$	--	$	--
One through Five Years		--		--		241		241
After Five through Ten Years		--		--		--		--
Over Ten Years		--		--		1,125		1,125
		--		--		1,366		1,366
Other Equity Securities		--		--		527		527
Total	$	28,226	$	28,565	$	41,802	$	41,731

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

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2021 and June 30, 2020 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2021
	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	$	222	$	4,662	$	37	$	1,856
Total Securities Available-for-Sale	$	222	$	4,662	$	37	$	1,856

	June 30, 2020
	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	$	--	$	--	$	38	$	2,816
Total Securities Available-for-Sale	$	--	$	--	$	38	$	2,816

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Loans Receivable (Tables)

9 Months Ended

Mar. 31, 2021

Loans Receivable [Abstract]

Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2021			June 30, 2020
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	99,480		$	108,146
Commercial		93,282			87,088
Multi-Family Residential		45,241			47,432
Land		16,690			18,068
Construction		11,305			8,159
Equity and Second Mortgage		1,289			1,410
Equity Lines of Credit		9,488			12,252
Total Mortgage Loans		276,775			282,555
Commercial Loans		69,789			81,909
Consumer Loans
Loans on Savings Accounts		458			364
Other Consumer Loans		518			615
Total Consumer Other Loans		976			979
Total Loans		347,540			365,443
Less:  Allowance for Loan Losses		(4,387	)		(4,081	)
Unamortized Loan Fees		(840	)		(1,435	)
Net Loans Receivable	$	342,313		$	359,927

Analysis of Allowance for Loan Losses

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

	Nine Months Ended March 31,
	2021			2020
	(In Thousands)
Balance - Beginning of Period	$	4,081		$	3,452
Provision for Loan Losses		1,750			1,441
Loan Charge-Offs		(1,646	)		(1,118	)
Recoveries		202			8
Balance - End of Period	$	4,387		$	3,783

Grading of Loans, Segregated by Class of Loans

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	98,876	$	359	$	245	$		$	99,480
Commercial		90,193		--		3,089		--		93,282
Multi-Family Residential		45,241		--		--		--		45,241
Land		16,690		--		--		--		16,690
Construction		11,305		--		--		--		11,305
Equity and Second Mortgage		1,289		--		--		--		1,289
Equity Lines of Credit		9,488		--		--		--		9,488
Commercial Loans		69,789		--		--		--		69,789
Consumer Loans		976		--		--		--		976
Total	$	343,847	$	359	$	3,334	$	--	$	347,540

June 30, 2020	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	106,886	$	475	$	785	$	--	$	108,146
Commercial		83,376		1,915		1,797		--		87,088
Multi-Family Residential		47,432		--		--		--		47,432
Land		15,087		--		2,981		--		18,068
Construction		8,159		--		--		--		8,159
Equity and Second Mortgage		1,410		--		--		--		1,410
Equity Lines of Credit		12,235		17		--		--		12,252
Commercial Loans		81,452		--		457		--		81,909
Consumer Loans		979		--		--		--		979
Total	$	357,016	$	2,407	$	6,020	$	--	$	365,443

Aging Analysis of Past Due Loans Segregated by Class of Loans

The following tables present an aging analysis of past due loans, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	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	$	--	$	--	$	254	$	254	$	99,226	$	99,480	$	--
Commercial		--		--		1,183		1,183		92,099		93,282		--
Multi-Family Residential		--		--		--		--		45,241		45,241		--
Land		--		--		--		--		16,690		16,690		--
Construction		--		--		--		--		11,305		11,305		--
Equity and Second Mortgage		--		--		--		--		1,289		1,289		--
Equity Lines of Credit		29		--		--		29		9,459		9,488		--
Commercial Loans		--		--		--		--		69,789		69,789		--
Consumer Loans		--		--		--		--		976		976		--
Total	$	29	$	--	$	1,437	$	1,466	$	346,074	$	347,540	$	--

June 30, 2020	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	$	1,312	$	557	$	1,003	$	2,872	$	105,274	$	108,146	$	319
Commercial		--		--		1,797		1,797		85,291		87,088		--
Multi-Family Residential		--		--		--		--		47,432		47,432		--
Land		--		--		2,981		2,981		15,087		18,068		--
Construction		--		--		--		--		8,159		8,159		--
Equity and Second Mortgage		--		--		--		--		1,410		1,410		--
Equity Lines of Credit		--		--		--		--		12,252		12,252		--
Commercial Loans		--		--		457		457		81,452		81,909		--
Consumer Loans		--		--		--		--		979		979		--
Total	$	1,312	$	557	$	6,238	$	8,107	$	357,336	$	365,443	$	319

Allowance for Loan Losses and Recorded Investment in Loans

The change in the allowance for loan losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2021 and year ended June 30, 2020 was as follows:

	Real Estate Loans
March 31, 2021	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	$	966		$	568		$	364	$	1,024		$	80	$	126	$	949		$	4	$	4,081
Charge-Offs		(41	)		(698	)		--		(907	)		--		--		--			--		(1,646	)
Recoveries		3			--			--		120			--		5		74			--		202
Current Provision		128			1,494			306		224			50		34		(486	)		--		1,750
Ending Balances	$	1,056		$	1,364		$	670	$	461		$	130	$	165	$	537		$	4	$	4,387
Evaluated for Impairment:
Individually		--			411			--		--			--		--		--			--		411
Collectively		1,056			953			670		461			130		165		537			4		3,976
Loans Receivable:
Ending Balances – Total	$	99,480		$	93,282		$	45,241	$	16,690		$	11,305	$	10,777	$	69,789		$	976	$	347,540
Ending Balances:
Evaluated for Impairment:
Individually		--			3,089			--		--			--		--		--			--		3,089
Collectively	$	99,480		$	90,193		$	45,241	$	16,690		$	11,305	$	10,777	$	69,789		$	976	$	344,451

	Real Estate Loans
June 30, 2020	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		(40	)		(100	)		--		--		--			(107	)		(1,135	)		--		(1,382	)
Recoveries		2			--			--		--		--			9			109			--		120
Current Provision		(13	)		160			26		924		(35	)		80			748			1		1,891
Ending Balances	$	966		$	568		$	364	$	1,024	$	80		$	126		$	949		$	4	$	4,081
Evaluated for Impairment:
Individually		34			23			--		907		--			--			--			--		964
Collectively		932			545			364		117		80			126			949			4		3,117
Loans Receivable:
Ending Balances – Total	$	108,146		$	87,088		$	47,432	$	18,068	$	8,159		$	13,662		$	81,909		$	979	$	365,443
Ending Balances:
Evaluated for Impairment:
Individually		1,260			3,712			--		2,981		--			17			457			--		8,427
Collectively	$	106,886		$	83,376		$	47,432	$	15,087	$	8,159		$	13,645		$	81,452		$	979	$	357,016

Loans Individually Evaluated for Impairment Segregated by Class of Loans

The following table’s present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2021 and June 30, 2020:

March 31, 2021	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	$	604	$	604	$	--	$	604	$	--	$	607
Commercial		3,089		775		2,314		3,089		411		3,496
Multi-Family Residential		--		--		--		--		--		--
Land		--		--		--		--		--		--
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		--		--		--		--		--		--
Commercial Loans		--		--		--		--		--		--
Consumer Loans		--		--		--		--		--		--
Total	$	3,693	$	1,379	$	2,314	$	3,693	$	411	$	4,103

June 30, 2020	Unpaid Principal Balance		Recorded Investment With No Allowance		Recorded Investment With Allowance		Total Recorded Investment		Related Allowance		Average Recorded Investment
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	1,260	$	1,260	$	--	$	1,260	$	--	$	1,271
Commercial		3,712		3,712		--		3,712		--		5,108
Multi-Family Residential		--		--		--		--		--		--
Land		2,981		--		2,981		2,981		907		2,981
Construction		--		--		--		--		--		--
Equity and Second Mortgage		--		--		--		--		--		--
Equity Lines of Credit		17		17		--		17		--		17
Commercial Loans		457		457		--		457		--		457
Consumer Loans		--		--		--		--		--		--
Total	$	8,427	$	5,446	$	2,981	$	8,427	$	907	$	9,834

Information about TDRs

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

	March 31, 2021
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial real estate	$	--	$	1,183	$	1,183	$	1,183
	June 30, 2020
	Current		Past Due Greater Than 30 Days		Nonaccrual TDRs		Total TDRs
Commercial business	$	--	$	457	$	457	$	457
1-4 Family Residential		--		76		76		76
Commercial real estate		--		1,797		1,797		1,797

Loan Modifications

Details with respect to actual loan modifications are as follows:

	Number of Covid-19 Remaining Deferments at March 31, 2021		Balance (in thousands)		Percent of Total Loans at March 31, 2021
One-to-Four family residential		1	$	2,237		2.2	%
Commercial real estate		1		2,553		2.7
Multi-family residential		--		--		--
Land		--		--		--
Construction		--		--		--
Equity and second mortgage		--		--		--
Equity lines of credit		1		180		1.9
Commercial business		--		--		--
Consumer		--		--		--
Total		3	$	4,970		1.4	%

	Number of Covid-19 Deferments Year Ended June 30, 2020		Balance (in thousands)		Percent of Total Loans at June 30, 2020
One-to-Four family residential		101	$	27,705		25.6	%
Commercial real estate		40		28,278		32.5
Multi-family residential		9		18,046		38.0
Land		7		1,190		6.6
Construction		1		680		8.3
Equity and second mortgage		--		--		--
Equity lines of credit		19		1,586		12.9
Commercial business		39		6,609		8.1
Consumer		--		--		--
Total		216	$	84,094		23.0	%

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Deposits (Tables)

9 Months Ended

Mar. 31, 2021

Deposits [Abstract]

Deposits

Deposits at March 31, 2021 and June 30, 2020 consist of the following classifications:

	March 31, 2021		June 30, 2020
	(In Thousands)
Non-Interest Bearing	$	129,305	$	103,422
NOW Accounts		46,538		41,365
Money Markets		81,362		74,637
Passbook Savings		122,956		83,797
		380,161		303,221
Certificates of Deposit		125,235		157,589
Total Deposits	$	505,396	$	460,810

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Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2021

Earnings Per Share [Abstract]

Calculation of Earnings per Share

Earnings per share for the three and nine months ended March 31, 2021 and 2020 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2021		2020		2021		2020
	(In Thousands, Except Per Share Data)
Net income	$	1,418	$	977	$	4,068	$	2,812
Weighted average shares outstanding – basic		3,219		3,364		3,238		3,406
Effect of dilutive common stock equivalents		235		246		153		254
Adjusted weighted average shares outstanding – diluted		3,454		3,610		3,391		3,660
Basic earnings per share	$	0.44	$	0.29	$	1.26	$	0.83
Diluted earnings per share	$	0.41	$	0.27	$	1.20	$	0.77

Components of Weighted Average Outstanding Shares

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2021			2020			2021			2020
	(In Thousands)
Average common shares issued		6,124			6,124			6,124			6,124
Average unearned ESOP shares		(159	)		(182	)		(165	)		(188	)
Average unearned RRP shares		--			--			--			(2	)
Average Company stock purchased		(2,746	)		(2,578	)		(2,721	)		(2,528	)
Weighted average shares outstanding		3,219			3,364			3,238			3,406

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Fair Value Disclosures (Tables)

9 Months Ended

Mar. 31, 2021

Fair Value Disclosures [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

At March 31, 2021 and June 30, 2020, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2021				June 30, 2020
	Carrying Value		Estimated Fair Value		Carrying Value		Estimated Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	100,971	$	100,971	$	54,871	$	54,871
Securities Available-for-Sale		28,565		28,565		42,060		42,060
Securities to be Held-to-Maturity		41,802		41,731		20,858		21,879
Loans Held-for-Sale		22,254		22,254		14,798		14,798
Loans Receivable		342,313		341,914		359,927	$	359,581
Financial Liabilities
Deposits	$	505,396	$	501,187	$	460,810	$	458,994
Advances from FHLB		876		940		1,060		1,150
Off-Balance Sheet Items
Mortgage Loan Commitments	$	8,555	$	8,555	$	8,536	$	8,536

Fair Values of Assets and Liabilities Measured on a Recurring Basis

Fair values of assets and liabilities measured on a recurring basis at March 31, 2021 and June 30, 2020 are as follows:

	Fair Value Measurements Using:
March 31, 2021	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	$	--	$	2,208	$	--	$	2,208
FNMA		--		19,788		--		19,788
GNMA		--		6,569		--		6,569
Total	$	--	$	28,565	$	--	$	28,565

	Fair Value Measurements Using:
June 30, 2020	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	$	--	$	5,159	$	--	$	5,159
FNMA		--		31,852		--		31,852
GNMA		--		5,049		--		5,049
Total	$	--	$	42,060	$	--	$	42,060

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Leases (Tables)

9 Months Ended

Mar. 31, 2021

Leases [Abstract]

Right-of-Use Assets and Lease Liabilities

With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities.

(In Thousands)		March 31, 2021		June 30, 2020
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	862	$	877
Total Lease Right-of-Use Assets		$	862	$	877
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	877	$	887
Total Lease Liabilities		$	877	$	887

Weighted-Average Remaining Lease Term and Discount rate

For operating leases existing prior to July 1, 2019, the rate for the remaining lease term as of July 1, 2019, was the Company’s only finance lease, the Company utilized its incremental borrowing rate at lease inception.

	March 31, 2021	June 30, 2020
Weighted-average remaining lease term
Operating leases	37.7 years	38.4 years
Weighted-average discount rate
Operating leases	3.00%	3.00%

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Summary of Accounting Policies (Details) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2021 USD ($)	Mar. 31, 2020 USD ($)	Mar. 31, 2021 USD ($) Office Subsidiary	Mar. 31, 2020 USD ($)	Jun. 30, 2020 USD ($)
Nature of Operations [Abstract]
Number of wholly-owned subsidiaries | Subsidiary			1
Securities [Abstract]
Trading securities	$ 0		$ 0		$ 0
Non-Direct Response Advertising [Abstract]
Non-direct response advertising costs	$ 45	$ 45	118	$ 257
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

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Securities, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	$ 28,226	$ 40,902
Gross Unrealized Gains	598	1,196
Gross Unrealized Losses	259	38
Fair Value	28,565	42,060
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	28,226	40,902
Gross Unrealized Gains	598	1,196
Gross Unrealized Losses	259	38
Fair Value	28,565	42,060
FHLMC Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	2,161	5,018
Gross Unrealized Gains	47	141
Gross Unrealized Losses	0	0
Fair Value	2,208	5,159
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	2,161	5,018
Fair Value	2,208	5,159
FNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	19,238	30,820
Gross Unrealized Gains	550	1,032
Gross Unrealized Losses	0	0
Fair Value	19,788	31,852
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	19,238	30,820
Fair Value	19,788	31,852
GNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Amortized Cost Basis [Abstract]
Amortized Cost	6,827	5,064
Gross Unrealized Gains	1	23
Gross Unrealized Losses	259	38
Fair Value	6,569	5,049
Available-for-sale Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	6,827	5,064
Fair Value	$ 6,569	$ 5,049

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Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 41,802	$ 20,858
Gross Unrealized Gains	655	1,021
Gross Unrealized Losses	726	0
Fair Value	41,731	21,879
Debt Securities [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	39,909	17,655
Gross Unrealized Gains	655	1,017
Gross Unrealized Losses	726	0
Fair Value	39,838	18,672
GNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	787	1,109
Gross Unrealized Gains	16	20
Gross Unrealized Losses	0	0
Fair Value	803	1,129
FNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	4,955	16,546
Gross Unrealized Gains	0	997
Gross Unrealized Losses	104	0
Fair Value	4,851	17,543
FHLMC Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	34,167
Gross Unrealized Gains	639
Gross Unrealized Losses	622
Fair Value	34,184
Municipals [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,366	243
Gross Unrealized Gains	0	4
Gross Unrealized Losses	0	0
Fair Value	1,366	247
Equity Securities (Non-Marketable) [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	527	2,960
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	527	2,960
Federal Home Loan Bank [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	277	2,710
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 277	$ 2,710
Number of equity securities (in shares)	2,766	27,094
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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Securities, Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Available-for-Sale, Amortized Cost [Abstract]
Amortized Cost	$ 28,226	$ 40,902
Available-for-Sale, Fair Value [Abstract]
Fair Value	28,565	42,060
Held-to-Maturity, Amortized Cost [Abstract]
Amortized Cost	41,802	20,858
Held-to-Maturity, Fair Value [Abstract]
Fair Value	41,731	21,879
Cost of available-for-sale securities purchased	5,100
Cost of held-to-maturity securities purchased	27,900
Debt Securities [Member]
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	629
One through Five Years	5,815
After Five through Ten Years	16,898
Over Ten Years	4,884
With Single Maturity Date	28,226
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	617
One through Five Years	5,979
After Five through Ten Years	17,307
Over Ten Years	4,662
With Single Maturity Date	28,565
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	39,909
With Single Maturity Date	39,909
Amortized Cost	39,909	17,655
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	39,838
With Single Maturity Date	39,838
Fair Value	39,838	18,672
Municipals [Member]
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	0
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	0
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	241
After Five through Ten Years	0
Over Ten Years	1,125
With Single Maturity Date	1,366
Amortized Cost	1,366	243
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	241
After Five through Ten Years	0
Over Ten Years	1,125
With Single Maturity Date	1,366
Fair Value	1,366	247
Other Equity Securities [Member]
Available-for-Sale, Amortized Cost [Abstract]
Without Single Maturity Date	0
Available-for-Sale, Fair Value [Abstract]
Without Single Maturity Date	0
Held-to-Maturity, Amortized Cost [Abstract]
Without Single Maturity Date	527
Amortized Cost	527	2,960
Held-to-Maturity, Fair Value [Abstract]
Without Single Maturity Date	527
Fair Value	$ 527	$ 2,960

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Securities, Securities with Gross Unrealized Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	$ 222	$ 0
Over Twelve Months	37	38
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	4,662	0
Over Twelve Months	1,856	2,816
Public Deposits [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	1,100
FHLB Advances [Member]
Securities Available-for-sale Securities, Fair Value [Abstract]
Securities pledged with carrying value	187,600
Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	222	0
Over Twelve Months	37	38
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	4,662	0
Over Twelve Months	$ 1,856	$ 2,816

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Loans Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020	Mar. 31, 2020	Jun. 30, 2019
Loan receivable [Abstract]
Total Loans	$ 347,540	$ 365,443
Less: Allowance for Loan Losses	(4,387)	(4,081)	$ (3,783)	$ (3,452)
Unamortized Loan Fees	(840)	(1,435)
Net Loans Receivable	342,313	359,927
Loans Secured by Mortgages on Real Estate [Member]
Loan receivable [Abstract]
Total Loans	276,775	282,555
Loans Secured by Mortgages on Real Estate [Member] | One-to-Four-Family Residential [Member]
Loan receivable [Abstract]
Total Loans	99,480	108,146
Less: Allowance for Loan Losses	(1,056)	(966)		(1,017)
Loans Secured by Mortgages on Real Estate [Member] | Commercial [Member]
Loan receivable [Abstract]
Total Loans	93,282	87,088
Less: Allowance for Loan Losses	(1,364)	(568)		(508)
Loans Secured by Mortgages on Real Estate [Member] | Multi-Family Residential [Member]
Loan receivable [Abstract]
Total Loans	45,241	47,432
Less: Allowance for Loan Losses	(670)	(364)		(338)
Loans Secured by Mortgages on Real Estate [Member] | Land [Member]
Loan receivable [Abstract]
Total Loans	16,690	18,068
Less: Allowance for Loan Losses	(461)	(1,024)		(100)
Loans Secured by Mortgages on Real Estate [Member] | Construction [Member]
Loan receivable [Abstract]
Total Loans	11,305	8,159
Less: Allowance for Loan Losses	(130)	(80)		(115)
Loans Secured by Mortgages on Real Estate [Member] | Equity and Second Mortgage [Member]
Loan receivable [Abstract]
Total Loans	1,289	1,410
Loans Secured by Mortgages on Real Estate [Member] | Equity Lines of Credit [Member]
Loan receivable [Abstract]
Total Loans	9,488	12,252
Commercial Loans [Member]
Loan receivable [Abstract]
Total Loans	69,789	81,909
Less: Allowance for Loan Losses	(537)	(949)		(1,227)
Consumer Loans [Member]
Loan receivable [Abstract]
Total Loans	976	979
Less: Allowance for Loan Losses	(4)	(4)		$ (3)
Consumer Loans [Member] | Loans on Savings Accounts [Member]
Loan receivable [Abstract]
Total Loans	458	364
Consumer Loans [Member] | Other Consumer Loans [Member]
Loan receivable [Abstract]
Total Loans	$ 518	$ 615

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Loans Receivable, Analysis of Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Summary of changes in the allowance for loan losses [Roll Forward]
Beginning Balances			$ 4,081	$ 3,452	$ 3,452
Provision for Loan Losses	$ 450	$ 316	1,750	1,441	1,891
Loan Charge-Offs			(1,646)	(1,118)	(1,382)
Recoveries			202	8	120
Ending Balances	$ 4,387	$ 3,783	$ 4,387	$ 3,783	$ 4,081

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Loans Receivable, Grading of Loans, Segregated by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	$ 347,540	$ 365,443
Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	343,847	357,016
Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	359	2,407
Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	3,334	6,020
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	276,775	282,555
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	99,480	108,146
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	98,876	106,886
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	359	475
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	245	785
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	93,282	87,088
Real Estate Loans [Member] | Commercial [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	90,193	83,376
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	1,915
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	3,089	1,797
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	45,241	47,432
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	45,241	47,432
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	16,690	18,068
Real Estate Loans [Member] | Land [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	16,690	15,087
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	0	2,981
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	11,305	8,159
Real Estate Loans [Member] | Construction [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	11,305	8,159
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	1,289	1,410
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	1,289	1,410
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	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
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	9,488	12,252
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	9,488	12,235
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	17
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	69,789	81,909
Commercial Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	69,789	81,452
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	0	457
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	976	979
Consumer Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	976	979
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

XML

Loans Receivable, Aging Analysis of Past Due Loans (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	$ 1,466	$ 8,107
Current	346,074	357,336
Total Loans Receivable	347,540	365,443
Recorded Investment > 90 Days and Accruing	0	319
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	53	464
30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	29	1,312
60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	557
90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,437	6,238
Real Estate Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans Receivable	276,775	282,555
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	254	2,872
Current	99,226	105,274
Total Loans Receivable	99,480	108,146
Recorded Investment > 90 Days and Accruing	0	319
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	0	1,312
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	0	557
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	254	1,003
Real Estate Loans [Member] | Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	1,183	1,797
Current	92,099	85,291
Total Loans Receivable	93,282	87,088
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	1,183	1,797
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	45,241	47,432
Total Loans Receivable	45,241	47,432
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	0	2,981
Current	16,690	15,087
Total Loans Receivable	16,690	18,068
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Land [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Land [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Land [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	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	11,305	8,159
Total Loans Receivable	11,305	8,159
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	0
Current	1,289	1,410
Total Loans Receivable	1,289	1,410
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	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | 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	29	0
Current	9,459	12,252
Total Loans Receivable	9,488	12,252
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	29	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	0	0
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	0	457
Current	69,789	81,452
Total Loans Receivable	69,789	81,909
Recorded Investment > 90 Days and Accruing	0	0
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Commercial Loans [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	457
Consumer Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Past Due	0	0
Current	976	979
Total Loans Receivable	976	979
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

XML

Loans Receivable, Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended		12 Months Ended
	Mar. 31, 2021	Mar. 31, 2020	Mar. 31, 2021	Mar. 31, 2020	Jun. 30, 2020
Allowance for loan losses [Roll Forward]
Beginning Balances			$ 4,081	$ 3,452	$ 3,452
Charge-Offs			(1,646)	(1,118)	(1,382)
Recoveries			202	8	120
Current Provision	$ 450	$ 316	1,750	1,441	1,891
Ending Balances	4,387	$ 3,783	4,387	3,783	4,081
Evaluated for Impairment [Abstract]
Individually	411		411		964
Collectively	3,976		3,976		3,117
Loans Receivable [Abstract]
Ending Balances - Total	347,540		347,540		365,443
Ending Balances, Evaluated for Impairment [Abstract]
Individually	3,089		3,089		8,427
Collectively	344,451		344,451		357,016
Real Estate Loans [Member]
Loans Receivable [Abstract]
Ending Balances - Total	276,775		276,775		282,555
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			966	1,017	1,017
Charge-Offs			(41)		(40)
Recoveries			3		2
Current Provision			128		(13)
Ending Balances	1,056		1,056		966
Evaluated for Impairment [Abstract]
Individually	0		0		34
Collectively	1,056		1,056		932
Loans Receivable [Abstract]
Ending Balances - Total	99,480		99,480		108,146
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		1,260
Collectively	99,480		99,480		106,886
Real Estate Loans [Member] | Commercial [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			568	508	508
Charge-Offs			(698)		(100)
Recoveries			0		0
Current Provision			1,494		160
Ending Balances	1,364		1,364		568
Evaluated for Impairment [Abstract]
Individually	411		411		23
Collectively	953		953		545
Loans Receivable [Abstract]
Ending Balances - Total	93,282		93,282		87,088
Ending Balances, Evaluated for Impairment [Abstract]
Individually	3,089		3,089		3,712
Collectively	90,193		90,193		83,376
Real Estate Loans [Member] | Multi Family [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			364	338	338
Charge-Offs			0		0
Recoveries			0		0
Current Provision			306		26
Ending Balances	670		670		364
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	670		670		364
Loans Receivable [Abstract]
Ending Balances - Total	45,241		45,241		47,432
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	45,241		45,241		47,432
Real Estate Loans [Member] | Land [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			1,024	100	100
Charge-Offs			(907)		0
Recoveries			120		0
Current Provision			224		924
Ending Balances	461		461		1,024
Evaluated for Impairment [Abstract]
Individually	0		0		907
Collectively	461		461		117
Loans Receivable [Abstract]
Ending Balances - Total	16,690		16,690		18,068
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		2,981
Collectively	16,690		16,690		15,087
Real Estate Loans [Member] | Construction [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			80	115	115
Charge-Offs			0		0
Recoveries			0		0
Current Provision			50		(35)
Ending Balances	130		130		80
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	130		130		80
Loans Receivable [Abstract]
Ending Balances - Total	11,305		11,305		8,159
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	11,305		11,305		8,159
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			126	144	144
Charge-Offs			0		(107)
Recoveries			5		9
Current Provision			34		80
Ending Balances	165		165		126
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	165		165		126
Loans Receivable [Abstract]
Ending Balances - Total	10,777		10,777		13,662
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		17
Collectively	10,777		10,777		13,645
Commercial Loans [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			949	1,227	1,227
Charge-Offs			0		(1,135)
Recoveries			74		109
Current Provision			(486)		748
Ending Balances	537		537		949
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	537		537		949
Loans Receivable [Abstract]
Ending Balances - Total	69,789		69,789		81,909
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		457
Collectively	69,789		69,789		81,452
Consumer Loans [Member]
Allowance for loan losses [Roll Forward]
Beginning Balances			4	$ 3	3
Charge-Offs			0		0
Recoveries			0		0
Current Provision			0		1
Ending Balances	4		4		4
Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	4		4		4
Loans Receivable [Abstract]
Ending Balances - Total	976		976		979
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0		0		0
Collectively	$ 976		$ 976		$ 979

XML

Loans Receivable, Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	$ 3,693	$ 8,427
Recorded Investment With No Allowance	1,379	5,446
Recorded Investment With Allowance	2,314	2,981
Total Recorded Investment	3,693	8,427
Related Allowance	411	907
Average Recorded Investment	4,103	9,834
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	604	1,260
Recorded Investment With No Allowance	604	1,260
Recorded Investment With Allowance	0	0
Total Recorded Investment	604	1,260
Related Allowance	0	0
Average Recorded Investment	607	1,271
Real Estate Loans [Member] | Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	3,089	3,712
Recorded Investment With No Allowance	775	3,712
Recorded Investment With Allowance	2,314	0
Total Recorded Investment	3,089	3,712
Related Allowance	411	0
Average Recorded Investment	3,496	5,108
Real Estate Loans [Member] | Multi-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	0	0
Real Estate Loans [Member] | Land [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	2,981
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	2,981
Total Recorded Investment	0	2,981
Related Allowance	0	907
Average Recorded Investment	0	2,981
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	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 Lines of Credit [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	17
Recorded Investment With No Allowance	0	17
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	17
Related Allowance	0	0
Average Recorded Investment	0	17
Commercial Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	457
Recorded Investment With No Allowance	0	457
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	457
Related Allowance	0	0
Average Recorded Investment	0	457
Consumer Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	0	0
Recorded Investment With No Allowance	0	0
Recorded Investment With Allowance	0	0
Total Recorded Investment	0	0
Related Allowance	0	0
Average Recorded Investment	$ 0	$ 0

XML

Loans Receivable, Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
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
Commercial Business Loans [Member] | Nonaccrual [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		457
Commercial Business Loans [Member] | Current [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		0
Commercial Business Loans [Member] | Past Due Greater than 30 Days [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		457
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		76
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Nonaccrual [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		76
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Current [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		0
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Past Due Greater than 30 Days [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs		76
Real Estate Loans [Member] | Commercial Real Estate [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	1,183	1,797
Real Estate Loans [Member] | Commercial Real Estate [Member] | Nonaccrual [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	1,183	1,797
Real Estate Loans [Member] | Commercial Real Estate [Member] | Current [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	0	0
Real Estate Loans [Member] | Commercial Real Estate [Member] | Past Due Greater than 30 Days [Member]
Troubled Debt Restructurings [Abstract]
Total TDRs	$ 1,183	$ 1,797

XML

Loans Receivable, Loan Modifications and Troubled Debt Restructurings (Details) - COVID-19 [Member] - Payment Deferral of Principal and Interest [Member] $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2021 USD ($) Loan	Jun. 30, 2020 USD ($) Loan
Loan Modifications and Troubled Debt Restructurings [Abstract]
Period of payment deferrals	3 months
Number of Covid-19 Deferments | Loan	3	216
Total Loans | $	$ 4,970	$ 84,094
Percent of Total Loans	1.40%	23.00%
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	1	101
Total Loans | $	$ 2,237	$ 27,705
Percent of Total Loans	2.20%	25.60%
Real Estate Loans [Member] | Commercial Real Estate [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	1	40
Total Loans | $	$ 2,553	$ 28,278
Percent of Total Loans	2.70%	32.50%
Real Estate Loans [Member] | Multi-Family Residential [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	0	9
Total Loans | $	$ 0	$ 18,046
Percent of Total Loans	0.00%	38.00%
Real Estate Loans [Member] | Land [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	0	7
Total Loans | $	$ 0	$ 1,190
Percent of Total Loans	0.00%	6.60%
Real Estate Loans [Member] | Construction [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	0	1
Total Loans | $	$ 0	$ 680
Percent of Total Loans	0.00%	8.30%
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	0	0
Total Loans | $	$ 0	$ 0
Percent of Total Loans	0.00%	0.00%
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	1	19
Total Loans | $	$ 180	$ 1,586
Percent of Total Loans	1.90%	12.90%
Commercial Business Loans [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	0	39
Total Loans | $	$ 0	$ 6,609
Percent of Total Loans	0.00%	8.10%
Consumer Loans [Member]
Loan Modifications and Troubled Debt Restructurings [Abstract]
Number of Covid-19 Deferments | Loan	0	0
Total Loans | $	$ 0	$ 0
Percent of Total Loans	0.00%	0.00%

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Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Summary of Deposits [Abstract]
Non-Interest Bearing	$ 129,305	$ 103,422
NOW Accounts	46,538	41,365
Money Markets	81,362	74,637
Passbook Savings	122,956	83,797
Total transaction accounts	380,161	303,221
Certificates of Deposit	125,235	157,589
Total Deposits	$ 505,396	$ 460,810

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Earnings Per Share (Details) $ / shares in Units, $ in Thousands		3 Months Ended		9 Months Ended
	Apr. 21, 2021 $ / shares	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 31, 2021 USD ($) $ / shares shares	Mar. 31, 2020 USD ($) $ / shares shares	Mar. 30, 2021 shares	Feb. 15, 2021 $ / shares	Jun. 30, 2020 $ / shares shares
Earnings Per Share [Abstract]
Stock split, conversion ratio				2
Percentage of stock dividend				100.00%
Dividend payable date				Mar. 31, 2021
Dividend record date				Mar. 22, 2021
Common stock, par value (in dollars per share) | $ / shares		$ 0.01		$ 0.01				$ 0.01
Common stock, outstanding (in shares)		3,369,966		3,369,966		1,700,000		3,449,024
Calculation of earnings per share [Abstract]
Net income | $		$ 1,418	$ 977	$ 4,068	$ 2,812
Weighted average shares outstanding - basic (in shares)		3,219,000	3,364,000	3,238,000	3,406,000
Effect of dilutive common stock equivalents (in shares)		235,000	246,000	153,000	254,000
Adjusted weighted average shares outstanding - diluted (in shares)		3,454,000	3,610,000	3,391,000	3,660,000
Basic earnings per share (in dollars per share) | $ / shares		$ 0.44	$ 0.29	$ 1.26	$ 0.83
Diluted earnings per share (in dollars per share) | $ / shares		$ 0.41	$ 0.27	$ 1.20	$ 0.77
Outstanding options to purchase shares (in shares)		691,445	545,196	614,261	548,362
Weighted average price per share of outstanding options (in dollars per share) | $ / shares		$ 9.94	$ 9.03	$ 9.94	$ 9.03
Components of average outstanding common shares [Abstract]
Average common shares issued (in shares)		6,124,000	6,124,000	6,124,000	6,124,000
Average unearned ESOP shares (in shares)		(159,000)	(182,000)	(165,000)	(188,000)
Average unearned RRP shares (in shares)		0	0	0	(2,000)
Average Company stock purchased (in shares)		(2,746,000)	(2,578,000)	(2,721,000)	(2,528,000)
Weighted average shares outstanding (in shares)		3,219,000	3,364,000	3,238,000	3,406,000
Stock Options [Member]
Calculation of earnings per share [Abstract]
Effect of dilutive common stock equivalents (in shares)		235,171	245,998	153,115	253,654
Dividend Paid [Member]
Earnings Per Share [Abstract]
Cash dividend (in dollars per share) | $ / shares							$ 0.165
Dividend declared date				Feb. 15, 2021
Stock Dividend [Member]
Earnings Per Share [Abstract]
Stock declared as dividends (in shares)				1
Quarterly Dividend Declared in Q4 2021 [Member] | Subsequent Event [Member]
Earnings Per Share [Abstract]
Cash dividend (in dollars per share) | $ / shares	$ 0.0825
Dividend declared date	Apr. 21, 2021
Dividend payable date	May 17, 2021
Dividend record date	May 03, 2021

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Stock-Based Compensation, Stock Option Plan (Details) - $ / shares			9 Months Ended
	Jul. 31, 2014	Jan. 31, 2012	Mar. 31, 2021	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 future issuance (in shares)					317,736
Termination date			Jun. 08, 2015
Outstanding stock options (in shares)			866
Term of share-based payment award			10 years
2011 Stock Option Plan [Member]
Stock Option Plans [Abstract]
Aggregate number of shares of common stock reserved for future issuance (in shares)			778	389,044
Number of Shares [Abstract]
Granted (in shares)	58,356	330,688
Weighted Average Exercise Price [Abstract]
Exercised (in dollars per share)	$ 9.46	$ 7.35

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Stock-Based Compensation, Stock Incentive Plans (Details) - USD ($) $ in Thousands						9 Months Ended
	Nov. 11, 2020	Nov. 13, 2019	Feb. 05, 2019	Oct. 26, 2015	Nov. 12, 2014	Mar. 31, 2021	Mar. 31, 2020
Stock Options [Member]
Stock Incentive Plans [Abstract]
Award vesting period						5 years
Compensation expense						$ 81	$ 103
2014 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Number of shares authorized under plan (in shares)					300,000
Award vesting period						5 years
2014 Stock Incentive Plan [Member] | Share Awards [Member]
Stock Incentive Plans [Abstract]
Granted (in shares)			6,000	69,000
2014 Stock Incentive Plan [Member] | Share Awards [Member] | Maximum [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares available for grant (in shares)					74,000
Percentage of shares available for grant					25.00%
2014 Stock Incentive Plan [Member] | Stock Options [Member]
Stock Incentive Plans [Abstract]
Number of shares forfeited (in shares)			9,000
Aggregate number of shares of common stock reserved for future issuance (in shares)					225,000
Granted (in shares)			27,000	207,000
Award vesting period						5 years
2019 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Number of shares authorized under plan (in shares)		250,000
Aggregate number of shares of common stock reserved for future issuance (in shares)		250,000
2019 Stock Incentive Plan [Member] | Share Awards [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares available for grant (in shares)	62,500					0
Percentage of shares available for grant	25.00%
2019 Stock Incentive Plan [Member] | Share Awards [Member] | Maximum [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares available for grant (in shares)		62,500
Percentage of shares available for grant		25.00%
2019 Stock Incentive Plan [Member] | Stock Options [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares available for grant (in shares)	187,500					0
Percentage of shares available for grant	25.00%
Award vesting period						5 years
2011 Recognition Plan and Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Compensation expense						$ 153	$ 177

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Related Party Transactions (Details) - USD ($) $ in Millions	Mar. 31, 2021	Jun. 30, 2020
Related Party Transactions [Abstract]
Loan made to directors and executive officers	$ 3.3	$ 3.8

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Fair Value Disclosures (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2021	Jun. 30, 2020
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	$ 28,565	$ 42,060
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	100,971	54,871
Securities Available-for-Sale	28,565	42,060
Securities to be Held-to-Maturity	41,802	20,858
Loans Held-for-Sale	22,254	14,798
Loans Receivable	342,313	359,927
Financial Liabilities [Abstract]
Deposits	505,396	460,810
Advances from FHLB	876	1,060
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	8,555	8,536
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	100,971	54,871
Securities Available-for-Sale	28,565	42,060
Securities to be Held-to-Maturity	41,731	21,879
Loans Held-for-Sale	22,254	14,798
Loans Receivable	341,914	359,581
Financial Liabilities [Abstract]
Deposits	501,187	458,994
Advances from FHLB	940	1,150
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 8,555	$ 8,536

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Fair Value Disclosures, Recurring and Nonrecurring (Details) - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	$ 28,565	$ 42,060
FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	2,208	5,159
FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	19,788	31,852
GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	6,569	5,049
Recurring [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	28,565	42,060
Recurring [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	2,208	5,159
Recurring [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	19,788	31,852
Recurring [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Available-for-sale debt securities	6,569	5,049
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	28,565	42,060
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	2,208	5,159
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	19,788	31,852
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	6,569	5,049
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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Leases (Details) - ASU 2016-02 [Member] - USD ($) $ in Thousands	Mar. 31, 2021	Jun. 30, 2020
Lease Right-of-Use Assets [Abstract]
Operating lease right-of-use assets	$ 862	$ 877
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Lease Liabilities [Abstract]
Operating lease liabilities	$ 877	$ 887
Operating Lease, Liability, Statement of Financial Position [Extensible List]	Other Accrued Expenses and Liabilities	Other Accrued Expenses and Liabilities
Weighted-average remaining lease term [Abstract]
Operating leases	37 years 8 months 12 days	38 years 4 months 24 days
Weighted-average discount rate [Abstract]
Operating leases	3.00%	3.00%