10-Q

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

For the quarterly period ended:	September 30, 2023
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 $0.01 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.  ☒ 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).  ☒ Yes  ☐ No

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company.  See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act. (Check One):

Large accelerated filer	☐	Accelerated filer	☐
Non-accelerated filer	☒	Smaller reporting company	☒
		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  
☒   No

Shares of common stock, par value $0.01 per share, outstanding as of November 9, 2023: The registrant had 3,133,351 shares of common stock outstanding.

INDEX

		Page
PART I	FINANCIAL INFORMATION
Item 1:	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders’ Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	7
Item 2:	Management’s Discussion and Analysis of Financial Condition and  Results of Operations	33
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	40
Item 4:	Controls and Procedures	40
PART II	OTHER INFORMATION
Item 1:	Legal Proceedings	41
Item 1A:	Risk Factors	41
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	41
Item 3:	Defaults Upon Senior Securities	41
Item 4:	Mine Safety Disclosures	41
Item 5:	Other Information	41
Item 6:	Exhibits	41
SIGNATURES		42

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

September 30, 2023 (Unaudited) June 30, 2023 (Audited) (In thousands except share and per share data)

	September 30, 2023			June 30, 2023
	(Unaudited)			(Audited)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $1,557 and $22,215 September 30, 2023 and June 30, 2023, Respectively)	$	8,878		$	24,765
Securities Available-for-Sale (amortized cost September 30, 2023: $44,736; June 30, 2023: $42,910, Respectively)		40,409			39,551
Securities Held-to-Maturity (fair value September 30, 2023: $57,557; June 30, 2023: $61,222, Respectively)		72,806			74,423
Loans Held-for-Sale		589			4
Loans Receivable, Net of Allowance for Credit Losses (September 30, 2023: $5,102; June 30, 2023: $5,173, Respectively)		506,599			489,493
Accrued Interest Receivable		1,907			1,790
Premises and Equipment, Net		16,978			16,561
Bank Owned Life Insurance		6,725			6,700
Goodwill		2,990			2,990
Core Deposit Intangible		1,439			1,533
Deferred Tax Asset		1,460			1,313
Real Estate Owned		561			368
Other Assets		1,261			1,424
Total Assets	$	662,602		$	660,915
LIABILITIES AND SHAREHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing	$	146,057		$	145,553
Interest-bearing		446,448			451,808
Total Deposits		592,505			597,361
Advances from Borrowers for Taxes and Insurance		715			554
Short-term Federal Home Loan Bank Advances		4,600			-
Other Borrowings		8,850			8,550
Other Accrued Expenses and Liabilities		5,459			3,908
Total Liabilities		612,129			610,373
STOCKHOLDERS’ EQUITY
Preferred Stock - $0.01 Par Value; 10,000,000 Shares Authorized; None Issued and Outstanding		-			-
Common Stock - $0.01 Par Value; 40,000,000 Shares Authorized: 3,133,351 Shares Issued and Outstanding at September 30, 2023 and June 30, 2023		31			31
Additional Paid-in Capital		41,057			40,981
Unearned ESOP Stock		(495	)		(523	)
Retained Earnings		13,346			12,707
Accumulated Other Comprehensive Loss		(3,466	)		(2,654	)
Total Stockholders’ Equity		50,473			50,542
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	662,602		$	660,915

See accompanying notes to unaudited consolidated financial statements.

1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (In thousands except share and per share data)

	Three Months Ended September 30,
	2023			2022
INTEREST INCOME
Loans, including fees	$	7,274		$	5,028
Investment securities		150			2
Mortgage-backed securities		473			489
Other interest-earning assets		177			262
Total interest income		8,074			5,781
INTEREST EXPENSE
Deposits		2,592			400
Federal Home Loan Bank borrowings		15			10
Other bank borrowings		183			66
Total interest expense		2,790			476
Net interest income		5,284			5,305
PROVISION FOR CREDIT LOSSES		-			418
Net interest income after provision for credit losses		5,284			4,887
NON-INTEREST INCOME
Gain on sale of loans		38			175
Loss on sale of real estate and fixed assets		(34	)		-
Income on bank owned life insurance		26			26
Service charges on deposit accounts		391			335
Other income		13			10
Total non-interest income		434			546
NON-INTEREST EXPENSE
Compensation and benefits		2,356			2,282
Occupancy and equipment		549			501
Data processing		245			181
Audit and examination fees		102			75
Franchise and bank shares tax		156			119
Advertising		143			74
Professional fees		160			126
Loan and collection		60			52
Amortization core deposit intangible		94			-
Deposit insurance premium		91			47
Other expenses		232			296
Total non-interest expense		4,188			3,753
Income before income taxes		1,530			1,680
PROVISION FOR INCOME TAX EXPENSE		310			9
NET INCOME	$	1,220		$	1,671
EARNINGS PER SHARE
Basic	$	0.40		$	0.55
Diluted	$	0.39		$	0.52

See accompanying notes to unaudited consolidated financial statements.

2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)

	For the Three Months Ended September 30,
	2023			2022
	(In Thousands)
Net Income	$	1,220		$	1,671
Other Comprehensive Loss, Net of Tax
Investment securities available-for-sale:
Net unrealized losses		(1,028	)		(1,109	)
Income tax effect		216			231
Other Comprehensive Loss		(812	)		(878	)
Total Comprehensive Income	$	408		$	793

See accompanying notes to unaudited consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

THREE MONTHS ENDED SEPTEMBER 30, 2023 AND 2022

(Unaudited)

	Common Stock			Additional Paid-in Capital		Unearned ESOP Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
						(In Thousands)
BALANCE – June 30, 2022	$	34		$	40,145	$	(639	)	$	14,506		$	(1,699	)	$	52,347
Net Income		-			-		-			1,671			-			1,671
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects		-			-		-			-			(878	)		(878	)
Stock Options Vested		-			26		-			-			-			26
Common Stock Issuance for Stock Option Exercises		-			147		-			-			-			147
ESOP Compensation Earned		-			82		29			-			-			111
Company Stock Purchased		(3	)		-		-			(5,889	)		-			(5,892	)
Dividends Declared ($0.12 per share)		-			-		-			(407	)		-			(407	)
BALANCE – September 30, 2022	$	31		$	40,400	$	(610	)	$	9,881		$	(2,577	)	$	47,125
BALANCE – June 30, 2023	$	31		$	40,981	$	(523	)	$	12,707		$	(2,654	)	$	50,542
Cumulative Effect of Change in Accounting Principle - ASU 2016-13		-			-		-			(189	)		-			(189	)
Net Income		-			-		-			1,220			-			1,220
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects		-			-		-			-			(812	)		(812	)
Stock Options Vested		-			23		-			-			-			23
ESOP Compensation Earned		-			53		28			-			-			81
Dividends Declared ($0.13 per share)		-			-		-			(392	)		-			(392	)
BALANCE – September 30, 2023	$	31		$	41,057	$	(495	)	$	13,346		$	(3,466	)	$	50,473

See accompanying notes to unaudited consolidated financial statements.

4

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended
	September 30,
	2023			2022
	(In Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	1,220		$	1,671
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Gain on Sale of Loans		(38	)		(175	)
Net Amortization and Accretion on Securities		107			3
Amortization of Deferred Loan Fees		(33	)		(194	)
Amortization of Purchased Loans		(419	)		-
Provision for Credit Losses		-			418
Depreciation of Premises and Equipment		224			218
Loss on Sales of Real Estate and Fixed Assets		34			-
ESOP Compensation Expense		81			111
Stock Option Expense		23			26
Deferred Income Tax Benefit		(147	)		(323	)
Federal Home Loan Bank Stock Dividend		17			1
Share Awards Expense		28			31
Increase in Cash Surrender Value on Bank Owned Life Insurance		(26	)		(26	)
Bad Debt Recovery		362			1
Loans Held-for-Sale – Originations and Purchases		(1,807	)		(9,932	)
Loans Held-for-Sale – Sale and Principal Repayments		1,222			12,097
Changes in Assets and Liabilities:
Accrued Interest Receivable		(117	)		(126	)
Other Operating Assets		163			103
Other Operating Liabilities		1,551			431
Net Cash Provided by Operating Activities		2,445			4,335
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		(17,659	)		(18,717	)
Deferred Loan Fees Collected		16			93
Acquisition of Premises and Equipment		(656	)		(106	)
Proceeds from Sale of Real Estate and Fixed Assets		276			-
Improvements to Real Estate Owned Prior to Disposition		(38	)		-
Activity in Available-for-Sale Securities:
Principal Payments on Securities		952			1,610
Purchase of Municipals		-			(570	)
Purchase of Mortgage-Backed Securities		(2,667	)		(4,806	)
Purchase of US Treasury Notes		-			-
Activity in Held-to-Maturity Securities:
Purchase of Securities		-			-
Purchases of FHLB Stock		-			-
Principal Payments on Mortgage-Backed Securities		1,631			1,870
Net Cash Used in Investing Activities		(18,145	)		(20,626	)

See accompanying notes to unaudited consolidated financial statements.  

5

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited)

	Three Months Ended
	September 30,
	2023			2022
	(In Thousands)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Decrease in Deposits	$	(4,856	)	$	(8,231	)
Proceeds from Advances from Federal Home Loan Bank		77,100			-
Repayments of Advances from Federal Home Loan Bank		(72,500	)		(9	)
Dividends Paid		(392	)		(407	)
Company Stock Purchased		-			(5,892	)
Net Increase in Advances from Borrowers for Taxes and Insurance		161			136
Proceeds from Other Bank Borrowings		300			4,000
Proceeds from Stock Options Exercised		-			147
Net Cash Used in Financing Activities		(187	)		(10,256	)
NET DECREASE IN CASH AND CASH EQUIVALENTS		(15,887	)		(26,547	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	$	24,765		$	64,078
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	8,878		$	37,531
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	2,772		$	468
Market Value Adjustment for Loss on Securities Available-for-Sale		(812	)		(1,109	)
Transfer from Loans to Other Real Estate Owned		465			93

See accompanying notes to unaudited consolidated financial statements.

6

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”). These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended September 30, 2023 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2024.

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 statement of financial condition date for potential recognition in the consolidated financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the statement of financial condition date are recognized in the consolidated financial statements as of September 30, 2023.  In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred through the date these consolidated 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 credit 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 ten full-service banking offices and home office, located in Caddo, Bossier and Webster Parishes, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City-Minden combined statistical area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of September 30, 2023, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Cash and Cash Equivalents

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

7

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

Securities

The discussion that follows describes the methodology for determining the allowance for credit loss (“ACL”) for investments under the ASU 2016-13 model that was adopted effective July 1, 2023. The allowance methodology for prior periods is disclosed in the Company’s 2023 Annual Report on Form 10-K.

Securities are being accounted for in accordance with FASB ASC 320’s, Investments, which requires 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 September 30, 2023 and June 30, 2023.

Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities. Securities are periodically reviewed for impairment. For debt securities in an unrealized loss position, the Company evaluates  the securities to determine whether the decline is in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors.  Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes.  For available for sale investments, credit related impairment is recognized as an ACL on the balance sheet, limited to the amount by which the amortized cost basis exceeds to the fair value, with a corresponding adjustment to earnings. For held to maturity investments, credit related impairment is recognized as an ACL on the balance sheet, for the entire amount of credit loss, with a corresponding adjustment to earnings.   Both the ACL and the adjustment to net income may be reversed if conditions change.  However, if the Company intends to sell an impaired available for sale security, or more likely than not will be required to sell such security before recovering the amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis.  Because the security’s amortized cost basis is adjusted to fair value, there is no ACL is such situation.  Accrued interest is receivable is excluded from the estimate of credit losses.

In evaluating securities in unrealized loss positions, for impairment and the criteria regarding intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by federal governments or its agencies, whether downgrades  by bond rating agencies have occurred, and the results of reviews of the issuer’s financial conditions, among other factors.

The Bank has invested in Federal Home Loan Bank (“FHLB”) stock, and other similar correspondent banks, which is reflected at cost in these consolidated financial statements. As a member of the FHLB System, the Bank is required to purchase and maintain stock in an amount determined by the FHLB. The FHLB stock is redeemable at par value at the discretion of the FHLB.

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.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

Loans  

Loans receivable are stated as unpaid principal balances less allowance for credit losses (“ACL”) 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 Credit Losses

The discussion that follows describes the methodology for determining the ACL under the new current expected credit loss (“CECL”) model that was implemented effective July 1, 2023 in accordance with ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. The allowance methodology for prior periods is disclosed in the Company’s 2023 Annual Report on Form 10-K.

The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

The ACL for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. The ACL is determined for two distinct categories of loans: 1) loans evaluated collectively for expected credit losses and 2) loans evaluated individually for expected credit losses. The ACL also includes certain qualitative adjustments to the ASU 2016-13 model.

Loans Evaluated Collectively. Homogeneous loans are evaluated collectively for expected credit losses. The loan pools/segments with similar risk characteristics were determined by Call Report codes.

Loans Evaluated Individually. Loans evaluated individually for expected credit losses could include loans on non-accrual status.

Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of nonperforming assets, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

Loans evaluated individually may have specific allocations assigned if the measured value of the loan using one of the noted techniques is less than its current carrying value. For loans measured using the fair value of collateral, if the analysis determines that sufficient collateral value would be available for repayment of the debt, then no allocations would be assigned to those loans. Collateral could be in the form of real estate or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification. For all loans, an internal risk rating process is used. The Company believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning risk ratings involves judgment. Risk ratings may be changed based on ongoing monitoring procedures, or if specific loan review assessments identify a deterioration or an improvement in the loan.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

Allowance for Credit Losses (continued)

The following is a summary of the Company’s internal risk rating categories:

• Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.

• Special Mention: These loans have a heightened credit risk, but not to the point of justifying a classification of Substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.

• Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The allocation of the ACL is reviewed to evaluate its appropriateness in relation to the overall risk profile of the loan portfolio. The Company considers risk factors such as: local and national economic conditions; trends in delinquencies and non-accrual loans; the diversity of borrower industry types; and the composition of the portfolio by loan type.

Qualitative and Other Adjustments to Allowance for Credit Losses: In addition to the quantitative credit loss estimates for loans evaluated collectively, qualitative factors that may not be fully captured in the quantitative results are also evaluated. These include changes in lending policy, the nature and volume of the portfolio, overall business conditions in the economy, credit concentrations, competition, model imprecision, and legal and regulatory requirements. Qualitative adjustments are judgmental and are based on Management’s knowledge of the portfolio and the markets in which the Company operates. Qualitative adjustments are evaluated and approved on a quarterly basis. Additionally, the ACL includes other allowance categories that are not directly incorporated in the quantitative results. These include but are not limited to loans-in-process, trade acceptances and overdrafts.

Off Balance Sheet Credit Exposures. The ACL for off balance sheet credit exposures is recorded in other liabilities on the Consolidated Balance Sheet. This ACL represents management’s estimate of expected losses in its unfunded loan commitments and other off balance sheet credit exposures, such as letters of credit and credit recourse on sold residential mortgage loans. The allowance for credit losses specific to unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). The ACL for off balance sheet credit exposures is increased or decreased by charges or reductions to expense, through the provision for credit losses.  In addition to the ACL on loans held for investment, CECL requires a balance sheet liability for unfunded commitments, which is recognized if both of the following conditions are met: (1) the Company has a present contractual obligation to extend credit; and (2) the obligation is not unconditionally cancellable by the Company. Based on the language within the standard loan documents prepared for each HFB commitment, all unfunded commitments are considered unconditionally cancellable and thus no CECL ACL is allocated for the quarter.

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 costs 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.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

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 Bank 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 FASB 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 Company 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. The Company’s basic and diluted earnings per share were $0.40 and $0.39, respectively, for the three months ended September 30, 2023 compared to basic and diluted earnings per share of $0.55 and $0.52, respectively, for the three months ended September 30, 2022.

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 consolidated statements of income 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 UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 statements of financial conditions along with net income, they are components of comprehensive income.

Critical Accounting Policies

During the quarter ended September 30, 2023, the Company implemented CECL accounting policies, procedures, and controls as part of its adoption of ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. There were no other changes made to the Company’s internal control over financial reporting that occurred during the quarter ended September 30, 2023 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Recent Accounting Pronouncements

ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The Company formed a cross-functional working group, who have worked through an implementation plan which includes assessment, review and documentation of various aspects of the implementation plan. After significant evaluation of approved methodologies, the Company determined to utilize a third-party vendor model, in which a weighted average remaining maturity methodology was appropriate for the size and complexity of the Company.  ASU 2016-13 is effective for the Company for annual and interim periods beginning on July 1, 2023. The Company adopted ASU 2016-13 in the first quarter of fiscal 2024. The adoption of the ASU 2016-13 resulted in an increase in the allowance for loan losses as a result of changing from an incurred loss model, which encompasses allowances for current known and inherent losses within the portfolio, to an expected loss model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The amount determined from adoption was recognized as a cumulative effective to the July 1, 2023 retained earnings.

Accounting Standards Update 2022-02 (“ASU 2022-02”), “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” In March 2022, the FASB issued ASU 2022-02 which eliminates the TDR recognition and measurement guidance and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. ASU 2022-02 also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for the Company for annual and interim periods beginning on July 1, 2023. The adoption of ASU 2022-02 did not have a significant impact on the Company’s consolidated financial statements other than the required disclosures.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

The Company adopted ASU 2016-13 using the weighted average maturity method (WARM) for all financial assets measured at amortized cost, net of investments in leases and off balance sheet credit exposures. Results for reporting periods beginning after July 1, 2023 are presented under ASU 2016-13, while prior period results are reported in accordance with the previously applicable incurred loss methodology.

The following table presents the impact of adopting ASU 2016-13 on July 1, 2023 (in thousands):

Allowance for credit losses – loans:	Beginning Balance June 30, 2023		Impact of ASU 2016-13 Adoption			Provision for Credit Losses		Charge-offs			Recoveries		Ending Balance September 30, 2023
Real Estate Loans:
1-4 Family residential	$	1,900	$	688		$	-	$	(428	)	$	1	$	2,161
Commercial		1,673		(119	)		-		-			-		1,554
Multi-Family		228		(139	)		-		-			-		89
Land		274		(85	)		-		-			-		189
Construction		254		(44	)		-		-			-		210
Home Equity Loans and Lines of Credit		251		30			-		-			2		283
Commercial Loans		588		24			-		-			-		612
Consumer Loans		5		4			-		(5	)		-		4
Total allowance for credit losses	$	5,173	$	359		$	-	$	(433	)	$	3	$	5,102

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2. Securities

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

	September 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	11,869	$	-	$	1,376	$	10,493
FNMA Mortgage-Backed Certificates		14,844		-		2,022		12,822
GNMA Mortgage-Backed Certificates		4,414		-		959		3,455
Total Debt Securities		31,127		-		4,357		26,770
US Treasury Securities		9,876		136		4		10,008
Municipals		3,733		2		104		3,631
Total Securities Available-for-Sale	$	44,736	$	138	$	4,465	$	40,409
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	619	$	-	$	80	$	539
FHLMC Mortgage-Backed Certificates		29,312		-		6,572		22,740
FNMA Mortgage-Backed Certificates		40,010		-		8,493		31,517
Total Debt Securities		69,941		-		15,145		54,796
Municipals		1,305		-		104		1,201
Equity Securities (Non-Marketable)
13,098 Shares – Federal Home Loan Bank		1,310		-		-		1,310
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		1,560		-		-		1,560
Total Securities Held-to-Maturity	$	72,806	$	-	$	15,249	$	57,557

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2.          Securities (continued)

	June 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	12,167	$	1	$	1,012	$	11,156
FNMA Mortgage-Backed Certificates		15,318		-		1,604		13,714
GNMA Mortgage-Backed Certificates		4,578		-		814		3,764
Total Debt Securities		32,063		1		3,430		28,634
US Treasury Securities		9,779		68		6		9,841
Municipal Bonds		1,068		11		3		1,076
Total Securities Available-for-Sale	$	42,910	$	80	$	3,439	$	39,551
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	623	$	-	$	63	$	560
FHLMC Mortgage-Backed Certificates		29,921		-		5,781		24,140
FNMA Mortgage-Backed Certificates		41,024		-		7,277		33,747
Total Debt Securities		71,568		-		13,121		58,447
Municipals		1,311		-		80		1,231
Equity Securities (Non-Marketable)
12,935 Shares – Federal Home Loan Bank		1,294		-		-		1,294
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		1,544		-		-		1,544
Total Securities Held-to-Maturity	$	74,423	$	-	$	13,201	$	61,222

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2.          Securities (continued)

The amortized cost and fair value of securities by contractual maturity at September 30, 2023 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
			(In Thousands)
Debt Securities
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		1		1		-		-
After Five through Ten Years		1,725		1,613		582		538
Over Ten Years		29,401		25,156		69,359		54,258
		31,127		26,770		69,941		54,796
US Treasury Securities
Within One Year or Less	$	7,877	$	8,008	$	-	$	-
One through Five Years		1,999		2,000		-		-
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		-		-
		9,876		10,008		-		-
Municipals
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		365		364		219		207
After Five through Ten Years		-		-		-		-
Over Ten Years		3,368		3,267		1,086		994
		3,733		3,631		1,305		1,201
Other Equity Securities		-		-		1,560		1,560
Total	$	44,736	$	40,409	$	72,806	$	57,557

Securities available-for-sale totaling $2.7 million were purchased during the three months ended September 30, 2023. There were no securities sold during the three months ended September 30, 2023.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2.           Securities (continued)

The following tables show information pertaining to gross unrealized losses on securities available-for-sale and held-to-maturity at September 30, 2023 and June 30, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 2023
	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		$	951		$	9,150		$	3,406		$	17,614
Municipals			104			2,293			-			-
US Treasury Securities			4			688			-			-
Total Securities Available-for-Sale		$	1,059		$	12,131		$	3,406		$	17,614

	September 30, 2023
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Held-to-Maturity
Mortgage-Backed Securities	$	-	$	-	$	15,145	$	54,796
Municipals		-		-		104		1,201
Total Securities Held-to-Maturity	$	-	$	-	$	15,249	$	55,997

The number of debt securities in an unrealized loss position was 65 at September 30, 2023.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

2.          Securities (continued)

	June 30, 2023
	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		$	618		$	9,109		$	2,811		$	18,892
Municipals			3			561			-			-
US Treasury Securities			8			2,186			-			-
Total Securities Available-for-Sale		$	629		$	11,856		$	2,811		$	18,892

	June 30, 2023
	Less Than Twelve Months						Over Twelve Months
	Gross						Gross
	Unrealized			Fair			Unrealized			Fair
	Losses			Value			Losses			Value
	(In Thousands)
Securities Held-to-Maturity
Mortgage-Backed Securities		$	215		$	1,859		$	12,907		$	56,587
Municipals			-			-			80		$	1,231
Total Securities Held-to-Maturity		$	215		$	1,859		$	12,987		$	57,818

The unrealized losses on the Company’s investment in mortgage-backed securities at September 30, 2023 and June 30, 2023 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 have an allowance for credit losses for these investments at September 30, 2023.

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

At September 30, 2023, securities with a carrying value of $10.6 million were pledged to secure public deposits and securities and mortgage loans with a carrying value of $198.1 million were pledged to secure FHLB advances.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3. Loans Receivable

Loans receivable are summarized as follows:

	September 30, 2023			June 30, 2023
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	186,002		$	179,579
Commercial		147,971			148,441
Multi-Family Residential		28,781			28,849
Land		30,473			26,841
Construction		33,984			28,035
Equity and Second Mortgage		2,488			2,450
Equity Lines of Credit		24,371			23,817
Total Mortgage Loans		454,070			438,012
Commercial Loans		56,328			55,364
Consumer Loans
Loans on Savings Accounts		367			372
Other Consumer Loans		1,082			1,082
Total Consumer Other Loans		1,449			1,454
Total Loans		511,847			494,830
Less:  Allowance for Credit Losses		(5,102	)		(5,173	)
Unamortized Loan Fees		(146	)		(164	)
Net Loans Receivable	$	506,599		$	489,493

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

	Three Months Ended			Three Months Ended
	September 30, 2023			June 30, 2023
	(In Thousands)
Balance - Beginning of Period	$	5,173		$	4,451
Impact of ASU 2016-13		359			-
Provision for Credit Losses		-			868
Loan Charge-Offs		(433	)		(237	)
Recoveries		3			91
Balance - End of Period	$	5,102		$	5,173

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. Once a loan has been classified as substandard or identified as special mention, management will conduct a quarterly review to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category. The delinquent loan report is monitored monthly to determine if any loan needs to be evaluated for classification or impairment.

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. All loans greater than 90 days past due are generally placed on nonaccrual status. The Company uses the following definitions for risk ratings:

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 costs 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 Bank’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 Bank 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 table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2023:

	Term Loans Amortized Cost by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	71,365	$	39,132	$	37,026	$	20,890	$	2,421	$	12,478	$	41	$	183,353
Special mention		971		-		-		-		-		322		-		1,293
Substandard		297		136		-		768		-		155		-		1,356
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential	$	72,633	$	39,268	$	37,026	$	21,658	$	2,421	$	12,955	$	41	$	186,002
Current period gross charge-offs	$	-	$	428	$	-	$	-	$	-	$	-	$	-	$	428
Commercial
Risk rating
Pass	$	23,431	$	43,795	$	44,350	$	20,007	$	1,900	$	1,013	$	11,560	$	146,056
Special mention		331		-		-		-		-		-		-		331
Substandard		975		-		-		609		-		-		-		1,584
Doubtful		-		-		-		-		-		-		-		-
Total commercial	$	24,737	$	43,795	$	44,350	$	20,616	$	1,900	$	1,013	$	11,560	$	147,971
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

	Term Loans Amortized Cost by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
	(In Thousands)
Multi-family residential
Risk rating
Pass	$	2,118	$	4,051	$	2,291	$	7,168	$	6,006	$	5,873	$	1,274	$	28,781
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	2,118	$	4,051	$	2,291	$	7,168	$	6,006	$	5,873	$	1,274	$	28,781
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	9,086	$	6,581	$	4,972	$	1,257	$	96	$	341	$	7,782	$	30,115
Special mention		50		308		-		-		-		-		-		358
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total land	$	9,136	$	6,889	$	4,972	$	1,257	$	96	$	341	$	7,782	$	30,473
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Risk rating
Pass	$	7,251	$	3,753	$	-	$	-	$	-	$	-	$	22,980	$	33,984
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	7,251	$	3,753	$	-	$	-	$	-	$	-	$	22,980	$	33,984
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	6,733	$	2,106	$	4,354	$	583	$	26	$	1,793	$	11,201	$	26,796
Special mention		-		-		-		-		-		-		-		-
Substandard		63		-		-		-		-		-		-		63
Doubtful		-		-		-		-		-		-		-		-
Total home equity and lines of credit	$	6,796	$	2,106	$	4,354	$	583	$	26	$	1,793	$	11,201	$	26,859
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk rating
Pass	$	15,582	$	9,888	$	7,758	$	6,193	$	2,012	$	11	$	12,091	$	53,535
Special mention		1,198		-		402		19		-		-		990		2,609
Substandard		137		5		42		-		-		-		-		184
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	16,917	$	9,893	$	8,202	$	6,212	$	2,012	$	11	$	13,081	$	56,328
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Risk rating
Pass	$	1,040	$	53	$	-	$	270	$	46	$	-	$	19	$	1,428
Special mention		-		-		-		-		-		-		-		-
Substandard		21		-		-		-		-		-		-		21
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	1,061	$	53	$	-	$	270	$	46	$	-	$	19	$	1,449
Current period gross charge-offs	$	5	$	-	$	-	$	-	$	-	$	-	$	-	$	5
Total
Pass	$	136,606	$	109,359	$	100,751	$	56,368	$	12,507	$	21,509	$	66,948	$	504,048
Special mention		2,550		308		402		19		-		322		990		4,591
Substandard		1,493		141		42		1,377		-		155		-		3,208
Doubtful		-		-		-		-		-		-		-		-
Total	$	140,649	$	109,808	$	101,195	$	57,764	$	12,507	$	21,986	$	67,938	$	511,847
Current period gross charge-offs	$	5	$	428	$	-	$	-	$	-	$	-	$	-	$	433

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents the most comparable required information for the prior period, internal credit risk ratings for the indicated loan class segments as of June 30, 2023:

June 30, 2023	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	176,536	$	810	$	2,233	$	-	$	179,579
Commercial		146,787		-		1,654		-		148,441
Multi-Family Residential		28,849		-		-		-		28,849
Land		26,841		-		-		-		26,841
Construction		28,035		-		-		-		28,035
Equity and Second Mortgage		2,381		-		69		-		2,450
Equity Lines of Credit		23,817		-		-		-		23,817
Commercial Loans		53,025		2,339		-		-		55,364
Consumer Loans		1,432		1		21		-		1,454
Total	$	487,703	$	3,150	$	3,977	$	-	$	494,830

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The following tables present an aging analysis of past due loans, segregated by class of loans, as of September 30, 2023 and June 30, 2023:

September 30, 2023	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	$	216	$	257	$	914	$	1,387	$	184,615	$	186,002	$	-
Commercial		-		-		-		-		147,971		147,971		-
Multi-Family Residential		-		-		-		-		28,781		28,781		-
Land		308		-		-		308		30,165		30,473		-
Construction		-		-		-		-		33,984		33,984		-
Equity and Second Mortgage		-		-		-		-		2,488		2,488		16
Equity Lines of Credit		116		110		16		242		24,129		24,371		-
Commercial Loans		108		43		47		198		56,130		56,328		47
Consumer Loans		1		4		5		10		1,439		1,449		5
Total	$	749	$	414	$	982	$	2,145	$	509,702	$	511,847	$	68

June 30, 2023	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	$	177	$	750	$	1,174	$	2,101	$	177,478	$	179,579	$	-
Commercial		-		-		-		-		148,441		148,441		-
Multi-Family Residential		-		-		-		-		28,849		28,849		-
Land		36		-		-		36		26,805		26,841		-
Construction		-		-		-		-		28,035		28,035		-
Equity and Second Mortgage		54		-		-		54		2,396		2,450		-
Equity Lines of Credit		-		-		-		-		23,817		23,817		-
Commercial Loans		63		-		-		63		55,301		55,364		-
Consumer Loans		-		-		-		-		1,454		1,454		-
Total	$	330	$	750	$	1,174	$	2,254	$	492,576	$	494,830	$	-

There was no interest income recognized on non-accrual loans during the three months ended September 30, 2023 or the year ended June 30, 2023. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the three months ended September 30, 2023 and the year ended June 30, 2023 was approximately $102,000 and $182,000, respectively.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2023 and year ended June 30, 2023 was as follows:

	Real Estate Loans
September 30, 2023	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 credit losses:
Beginning Balances	$	1,900		$	1,673		$	228		$	274		$	254		$	251	$	588	$	5		$	5,173
Impact of ASU 2016-13		688			(119	)		(139	)		(85	)		(44	)		30		24		4			359
Charge-Offs		(428	)		-			-			-			-			-		-		(5	)		(433	)
Recoveries		1			-			-			-			-			2		-		-			3
Current Provision(1)		-			-			-			-			-			-		-		-			-
Ending Balances	$	2,161		$	1,554		$	89		$	189		$	210		$	283	$	612	$	4		$	5,102

(1) Current provision included in the table only includes the portion related to loans receivable.

	Real Estate Loans
June 30, 2023	Residential			Commercial		Multi- Family			Land			Construction			Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans		Total
									(In Thousands)
Allowance for credit losses:
Beginning Balances	$	1,367		$	1,295	$	357		$	305		$	282		$	197		$	646		$	2	$	4,451
Charge-Offs		(41	)		-		-			-			-			(26	)		(170	)		-		(237	)
Recoveries		4			-		-			-			-			5			82			-		91
Current Provision		570			378		(129	)		(31	)		(28	)		75			30			3		868
Ending Balances	$	1,900		$	1,673	$	228		$	274		$	254		$	251		$	588		$	5	$	5,173
Evaluated for Impairment:
Individually		495			100		-			-			-			4			29			-		628
Collectively		1,405			1,573		228			274			254			247			559			5		4,545
Loans Receivable:
Ending Balances – Total	$	179,579		$	148,441	$	28,849		$	26,841		$	28,035		$	26,267		$	55,364		$	1,454	$	494,830
Ending Balances:
Evaluated for Impairment:
Individually		3,043			1,654		-			-			-			69			2,339			22		7,127
Collectively	$	176,536		$	146,787	$	28,849		$	26,841		$	28,035		$	26,198		$	53,025		$	1,432	$	487,703

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of September 30, 2023 and June 30, 2023:

September 30, 2023	Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	3,536	$	127
Commercial		-		-
Multi-Family Residential		-		-
Land		171		6
Construction		69		2
Equity and Second Mortgage		-		-
Equity Lines of Credit		-		-
Commercial Loans		7,840		8
Consumer Loans		346		5
Total	$	11,962	$	148

The balances of loans individually evaluated for impairment were similar at July 1, 2023 and September 30, 2023.

June 30, 2023	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	$	2,559	$	156	$	2,403	$	2,559	$	495	$	3,644
Commercial		1,617		-		1,617		1,617		100		1,675
Multi-Family Residential		-		-		-		-		-		-
Land		-		-		-		-		-		-
Construction		-		-		-		-		-		-
Equity and Second Mortgage		-		-		-		-		-		63
Equity Lines of Credit		-		-		-		-		-		-
Commercial Loans		2,197		37		2,160		2,197		29		2,659
Consumer Loans		-		-		-		-		-		23
Purchased Credit Impaired		754		685		69		754		4		754
Total	$	7,127	$	878	$	6,249	$	7,127	$	628	$	8,818

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. As of September 30, 2023, there were no residential loans in the process of foreclosure.

Prior to the adoption of ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, the Company had granted a variety of concessions to borrowers in the form of loan modifications that were considered TDRs. At June 30, 2023, the Company had one loan totaling $10,000 that was identified as a troubled debt restructuring. This loan was performing in accordance with its modified terms as of June 30, 2023.

As of September 30, 2023, there were no loans whose terms were modified for borrowers who may be experiencing financial difficulties.

At September 30, 2023 and June 30, 2023, accrued interest receivable on loans was $1.7 million and $1.6 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

4. Deposits

Deposits at September 30, 2023 and June 30, 2023 consist of the following classifications:

	September 30, 2023		June 30, 2023
	(In Thousands)
Non-Interest Bearing	$	146,057	$	145,553
NOW Accounts		63,613		65,335
Money Markets		104,580		114,195
Passbook Savings		75,747		81,895
		389,997		406,978
Certificates of Deposit		202,508		190,383
Total Deposits	$	592,505	$	597,361

5. Earnings Per Share

Basic earnings per common share is computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three months ended September 30, 2023 and 2022 were calculated as follows:

	Three Months Ended September 30,
	2023		2022
	(In Thousands, Except Per Share Data)
Net income	$	1,220	$	1,671
Weighted average shares outstanding – basic		3,029		3,066
Effect of dilutive common stock equivalents		79		162
Adjusted weighted average shares outstanding – diluted		3,108		3,228
Basic earnings per share	$	0.40	$	0.55
Diluted earnings per share	$	0.39	$	0.52

For the three months ended September 30, 2023 and 2022, there were outstanding options to purchase 364,916 and 389,616 shares, respectively, at a weighted average exercise price of $11.65 and $11.81 per share, respectively. For the quarter ended September 30, 2023 and 2022, 79,237 options and 161,866 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 September 30,
	2023			2022
	(In Thousands)
Average common shares issued		6,125			6,125
Average unearned ESOP shares		(102	)		(125	)
Average Company stock purchased		(2,994	)		(2,934	)
Weighted average shares outstanding		3,029			3,066

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6. Stock-Based Compensation

Stock Option Plans

On August 10, 2005, the stockholders 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 4,266 outstanding options as of September 30, 2023 will remain in effect for the remainder of their original ten year terms.

On December 23, 2011, the stockholders 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 (as adjusted). The 2011 Option Plan terminated on December 23, 2021; however, the 37,350 outstanding options as of September 30, 2023 will remain in effect for the remainder of their original ten year term.

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 Plans

On November 12, 2014, the stockholders 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 (as adjusted), of which no more than 74,000 shares (as adjusted), 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 (as adjusted), 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 November 13, 2019, the stockholders 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 (as adjusted) reserved for future issuance as stock awards or stock options. No more than 62,500 shares (as adjusted), 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 September 30, 2023, there are 1,600 plan share awards and 23,000 stock options available for future grants under the Stock Incentive Plans.

For both the three months ended September 30, 2023 and 2022, compensation expense charged to operations for stock options granted under the 2011 Option Plan and the Stock Incentive Plans was $26,000.

7. Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $4.2 million and $4.4 million at September 30, 2023 and June 30, 2023, respectively.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 September 30, 2023 and June 30, 2023, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	September 30, 2023				June 30, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,878	$	8,878	$	24,765	$	24,765
Securities Available-for-Sale		40,409		40,409		39,551		39,551
Securities to be Held-to-Maturity		72,806		57,557		74,423		61,222
Loans Held-for-Sale		589		589		4		4
Loans Receivable		506,599		465,463		489,493		444,117
Financial Liabilities
Deposits	$	592,505	$	500,015	$	597,361	$	481,055
Advances from FHLB		4,600		4,600		-		-
Other Borrowings		8,850		8,850		8,550		8,550
Off-Balance Sheet Items
Mortgage Loan Commitments	$	13,127	$	13,127	$	13,277	$	13,277

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 UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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 upon inputs 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 three months ended September 30, 2023.

Fair values of assets and liabilities measured on a recurring basis at September 30, 2023 and June 30, 2023 are as follows:

	Fair Value Measurements
September 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	10,493	$	-	$	10,493
FNMA		-		12,822		-		12,822
GNMA		-		3,455		-		3,455
US Treasury Notes		-		10,008		-		10,008
Municipal Bonds		-		3,631		-		3,631
Total	$	-	$	40,409	$	-	$	40,409

	Fair Value Measurements
June 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	11,156	$	-	$	11,156
FNMA		-		13,714		-		13,714
GNMA		-		3,764		-		3,764
US Treasury Notes		-		9,841		-		9,841
Municipal Bonds		-		1,076		-		1,076
Total	$	-	$	39,551	$	-	$	39,551

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8.          Fair Value Disclosures (continued)

Fair values of assets and liabilities measured on a non-recurring basis at September 30, 2023 and June 30, 2023 are as follows:

	Fair Value Measurements
September 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	11,814	$	11,814
Other Real Estate Owned,
Net of Allowance	$	-	$	-	$	562	$	562
Total	$	-	$	-	$	12,376	$	12,376

	Fair Value Measurements
June 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	701	$	701
Other Real Estate Owned,
Net of Allowance	$	-	$	-	$	330	$	330
Total	$	-	$	-	$	1,031	$	1,031

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

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. 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. Right-of-use (“ROU”) assets and corresponding lease liabilities are recognized on the consolidated statements of condition under other assets and other accrued expenses and liabilities, respectively.

At September 30, 2023 and June 30, 2023, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows.

(In Thousands)		September 30, 2023		June 30, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	829	$	829
Total Lease Right-of-Use Assets		$	829	$	829
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	866	$	866
Total Lease Liabilities		$	866	$	866

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.

	September 30, 2023			June 30, 2023
Weighted-average remaining lease term
Operating leases	35.1 years			35.4 years
Weighted-average discount rate
Operating leases		3.00	%		3.00	%

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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 condition and results of operations.

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

Critical Accounting Policies

The accounting and financial reporting policies of the Company conform to accounting principles generally accepted in the United States of America and to general practices within the banking industry. Accordingly, the consolidated financial statements require certain estimates, judgments, and assumptions, which are believed to be reasonable, based upon the information available. These estimates and assumptions affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of income and expenses during the periods presented. Critical accounting policies comprise those that management believes are the most critical to aid in fully understanding and evaluating our reported financial results.  These policies require numerous estimates or economic assumptions that may prove inaccurate or may be subject to variations which may significantly affect our reported results and financial condition for the period or in future periods.

During the quarter ended September 30, 2023, the Company implemented new current expected credit loss (“CECL”) accounting policies, procedures, and controls as part of its adoption of ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. There were no other changes made to the Company's internal control over financial reporting that occurred during the quarter ended September 30, 2023 that materially affected, or are reasonably likely to materially affect, the Company's internal control over financial reporting.

Allowance for Credit Losses.  The Company has identified the calculation of the allowance for credit losses as a critical accounting policy, due to the higher degree of judgment and complexity than its other significant accounting policies.

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.

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Discussion of Financial Condition Changes from June 30, 2023 to September 30, 2023

General

At September 30, 2023, the Company reported total assets of $662.6 million, an increase of $1.7 million, or 0.3%, compared to total assets of $660.9 million at June 30, 2023. The increase in assets was comprised primarily of increases in loans receivable, net of $17.1 million, or 3.5%, from $489.5 million at June 30, 2023 to $506.6 million at September 30, 2023, loans-held-for-sale of $585,000, from $4,000 at June 30, 2023 to $589,000 at September 30, 2023, premises and equipment of $417,000, or 2.5%, from $16.6 million at June 30, 2023 to $17.0 million at September 30, 2023, real estate owned of $193,000, or 52.4% from $368,000 at June 30, 2023 to $561,000 at September 30, 2023, deferred tax asset of $147,000, or 11.2%, from $1.3 million at June 30, 2023 to $1.5 million at September 30, 2023, accrued interest receivable of $117,000, or 6.5%, from $1.8 million at June 30, 2023 to $1.9 million at September 30, 2023, and bank owned life insurance of $25,000, or 0.4%, from $6.70 million at June 30, 2023 to $6.725 million at September 30, 2023. These increases were partially offset by decreases in cash and cash equivalents of $15.9 million, or 64.2%, from $24.8 million at June 30, 2023 to $8.9 million at September 30, 2023, investment securities of $759,000, or 0.7%, from $114.0 million at June 30, 2023 to $113.2 million at September 30, 2023, other assets of $163,000, or 11.4%, from $1.4 million at June 30, 2023 to $1.3 million at September 30, 2023, and core deposit intangible of $94,000, or 6.1%, from $1.5 million at June 30, 2023 to $1.4 million at September 30, 2023.  The decrease in cash and cash equivalents was primarily due to the funding of additional loan growth.  The decrease in held to maturity securities was due to $1.6 million in principal payments.  The increase in loans held-for-sale primarily reflected an increase in loans originated for sale during the three months ended September 30, 2023.

Cash and Cash Equivalents

Cash and cash equivalents decreased $15.9 million, or 64.2%, from $24.8 million at June 30, 2023 to $8.9 million at September 30, 2023. The decrease in cash and cash equivalents was primarily due to the funding of loan originations.

Loans Receivable, Net

Loans receivable, net, increased by $17.1 million, or 3.5%, to $506.6 million at September 30, 2023 compared to $489.5 million at June 30, 2023.  The increase in loans receivable, net was primarily due to increases in one-to-four-family residential loans of $6.4 million, construction loans of $5.9 million, land loans of $3.6 million, commercial non-real estate loans of $964,000, equity line-of-credit loans of $554,000, equity and second mortgage loans of $38,000, and partially offset by decreases in commercial real estate loans of $470,000, multi-family residential loans of $68,000, and consumer loans of $5,000.

Loans Held-for-Sale

Loans held-for-sale increased $585,000, from $4,000 at June 30, 2023 to $589,000 at September 30, 2023.  The increase in loans held-for-sale results primarily from the increase in the origination volume during the first three months of fiscal year end 2024.

Investment Securities

Investment securities amounted to $113.2 million at September 30, 2023 compared to $114.0 million at June 30, 2023, a decrease of $759,000, or 0.7%.  The decrease in investment securities was primarily due to $2.6 million principal repayments on mortgage backed securities and a $967,000 increase in market value losses on available-for-sale securities, partially offset by security purchases of $2.7 million.

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Discussion of Financial Condition Changes from June 30, 2023 to September 30, 2023 (continued)

Premises and Equipment, Net

Premises and equipment, net increased $417,000, or 2.5%, to $17.0 million at September 30, 2023 compared to $16.6 million at June 30, 2023.  The increase in premises and equipment was primarily due to construction costs of a new Minden branch that will replace an existing temporary location.

Asset Quality

At September 30, 2023, the Company had $1.8 million of non-performing assets (defined as non-accruing loans, accruing loans 90 days or more past due, and other real estate owned) compared to $1.6 million on non-performing assets at June 30, 2023, consisting of five single-family residential loans, six commercial non-real estate loans, three consumer loans, two home equity line-of-credit loans, and three single-family residence loans in real estate owned at September 30, 2023, compared to seven single-family residential loans, three commercial non-real estate loans, one consumer loan and two single-family residences in other real estate owned at June 30, 2023.  At September 30, 2023 the Company had seven single family residential loans, seven commercial non-real-estate loans, three home-equity line-of-credit loans, two commercial real estate loans, and one auto loan compared to ten single family residential loans, three commercial non-real-estate loans, two commercial real estate loans, and three home equity line-of-credit loans classified as substandard at June 30, 2023.  There were no loans classified as doubtful at September 30, 2023 or June 30, 2023.

Total Liabilities

Total liabilities increased $1.8 million, or 0.3%, from $610.4 million at June 30, 2023 to $612.1 million at September 30, 2023. The increase in liabilities was comprised primarily of increases in advances from FHLB of $4.6 million from none at June 30, 2023, other accrued expenses and liabilities of $1.6 million, or 39.7%, to $5.5 million at September 30, 2023 compared to $3.9 million at June 30, 2023, other borrowings of $300,000, or 3.5%, to $8.9 million at September 30, 2023 compared to $8.6 million at June 30, 2023, and advances from borrowers for taxes and insurance of $161,000, or 29.1%, to $715,000 at September 30, 2023 compared to $554,000 at June 30, 2023. The increases were partially offset by a decrease in total deposits of $4.9 million, or 0.8%, to $592.5 million at September 30, 2023 compared to $597.4 million at June 30, 2023.  The decrease in deposits was primarily due to a decrease of $9.6 million, or 8.4%, in money market deposits from $114.2 million at June 30, 2023 to $104.6 million at September 30, 2023, a decrease of $6.1 million, or 7.5%, in savings deposits from $81.9 million at June 30, 2023 to $75.7 million at September 30, 2023, a decrease of $1.7 million, or 2.6%, in NOW accounts from $65.3 million at June 30, 2023 to $63.6 million at September 30, 2023, partially offset by an increase of $12.1 million, or 6.4%, in certificates of deposit from $190.4 million at June 30, 2023 to $202.5 million at September 30, 2023 and an increase of $504,000, or 0.4%, in non-interest deposits from $145.6 million at June 30, 2023 to $146.1 million at September 30, 2023. The Company had $3.0 million in brokered deposits at both September 30, 2023 and June 30, 2023.

Stockholders’ Equity

Stockholders’ equity decreased $69,000, or 0.1%, to $50.47 million at September 30, 2023 from $50.54 million at June 30, 2023. The primary reasons for the changes in stockholders’ equity from June 30, 2023 were a decrease in the Company’s accumulated other comprehensive income of $812,000, dividends paid totaling $392,000, and CECL implementation totaling $189,000, partially offset by net income of $1.2 million, and the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $104,000.

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Discussion of Financial Condition Changes from June 30, 2023 to September 30, 2023 (continued)

Regulatory Capital

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At September 30, 2023, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements. At September 30, 2023, 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 8.91%, 12.76%, 8.91%, and 13.87%, respectively.

Comparison of Operating Results for the Three Months Ended September 30, 2023 and 2022

General

The decrease in net income for the three months ended September 30, 2023, as compared to the prior year quarter resulted primarily from an increase of $435,000, or 11.6%, in non-interest expense, an increase of $301,000 in provision for income taxes, a decrease of $112,000, or 20.5%, in non-interest income, and a decrease of $21,000, or 0.4% in net interest income, partially offset by a decrease of $418,000, or 100.0% in the provision for credit losses.

Net Interest Income

The decrease in net interest income for the three months ended September 30, 2023, was primarily due to a $2.3 million, or 486.1%, increase in total interest expense, partially offset by an increase of $2.3 million, or 39.7%, in total interest income.  The Company’s average interest rate spread was 2.68% for the three months ended September 30, 2023, compared to 3.74% for the three months ended September 30, 2022. The Company’s net interest margin was 3.37% for the three months ended September 30, 2023, compared to 3.90% for the three months ended September 30, 2022.

Provision for Credit Losses

On July 1, 2023, the Company adopted the CECL methodology for estimating credit losses.   This resulted in a $189,000 increase to the allowance for credit losses and a one-time cumulative adjustment resulted in a $149,000, net of tax, decrease to stockholders’ equity.   For purchased credit deteriorated loans, the Company applied the guidance under CECL using the prospective transition approach.  As a result, the Company adjusted the amortized cost basis of the purchased credit deteriorated loans by $170,000 to reclassify the purchase discount to the allowance for credit losses on July 1, 2023.   The ACL account increased $359,000 from these two transactions.  No provision expense was recorded in the first quarter of 2024.  As of September 30, 2023, the ACL was $5.1 million, and the ratio of ACL to gross loans was 1.00%.  As of June 30, 2023, the ACL was $5.2 million, and the ratio of ACL to gross loans was 1.05%. No ACL was recorded for unfunded commitments due to all unfunded commitments being unconditionally cancellable.

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Comparison of Operating Results for the Three Months Ended September 30, 2023 and 2022 (continued)

Non-interest Income

The $112,000 decrease in non-interest income for the three months ended September 30, 2023, compared to the prior year quarterly period, was primarily due to a decrease of $137,000 in gain on sale of loans, and a $34,000 increase in loss on sale of real estate and fixed assets, partially offset by a $56,000 increase in service charges on deposit accounts, and an increase of $3,000 in other non-interest income. The decrease in gain on sale of loans for the quarter ended September 30, 2023, compared to the prior year quarterly period, was primarily due to a decrease in refinance activity causing a decrease in mortgage loan originations. In addition, in recent periods the Company has increased its originations of adjustable rate mortgages for portfolio rather than for sale in the secondary market.

Non-interest Expense

The $435,000 increase in non-interest expense for the three months ended September 30, 2023, compared to the same period in 2022, is primarily attributable to increases of $94,000 in amortization of core deposit intangible expense, $74,000 in compensation and benefits expense, $69,000 in advertising expense, $64,000 in data processing expense, $48,000 in occupancy and equipment expense, $44,000 in deposit insurance premium expense, $37,000 in franchise and bank shares tax expense, $34,000 in professional fees,  $27,000 in audit and examination fees, and $8,000 in loan and collection expense. The increases were partially offset by a decrease of $64,000 in other non-interest expense.

The decrease in other non-operating expense was primarily due to communication expense, correspondent bank fees, and fraud expense related to deposit checking accounts. The aggregate compensation expense recognized by the Company for its Stock Options, Share Awards and employee stock ownership plan, amounted to $132,000 and $168,000 for the three months ended September 30, 2023 and September 30, 2022, respectively.

The Louisiana bank shares tax is assessed on the Bank’s equity and earnings. For the three months ended September 30, 2023, the Company recognized franchise and bank shares tax expense of $156,000 compared to $119,000, for the same period in 2022.

Income Taxes

Income taxes amounted to $310,000 for the three months ended September 30, 2023, resulting in an effective tax rate of 20.3%. Income taxes amounted to $9,000 for the three months ended September 30, 2022, resulting in an effective tax rate of 0.5%.  The increase in provision for income taxes was due to an adjustment in taxes related to stock option exercises for the 2022 period.

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Comparison of Operating Results for the Three Months Ended September 30, 2023 and 2022 (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 September 30,
	2023							2022
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	498,242	$	7,274		5.79	%	$	396,768	$	5,028		5.03	%
Investment securities		113,584		623		2.18			110,602		491		1.76
Interest-earning deposits		10,066		177		6.98			32,706		262		3.18
Total interest-earning assets		621,892		8,074		5.15	%		540,076		5,781		4.25	%
Non-interest-earning assets		40,584							45,074
Total assets	$	662,476						$	585,150
Interest-bearing liabilities:
Savings accounts	$	78,572		75		0.38	%	$	128,749		84		0.26	%
NOW accounts		55,900		67		0.48			58,658		17		0.11
Money market accounts		108,891		621		2.26			94,694		35		0.15
Certificate accounts		194,785		1,829		3.73			84,715		264		1.24
Total interest-bearing deposits		438,148		2,592		2.35			366,816		400		0.43
Other Borrowings		8,654		183		8.39			4,915		66		5.33
FHLB advances		1,138		15		5.23			826		10		4.80
Total interest-bearing liabilities	$	447,940		2,790		2.47	%	$	372,557		476		0.51	%
Non-interest-bearing liabilities:
Non-interest-bearing demand accounts		158,973							161,907
Other liabilities		4,384							3,294
Total liabilities		611,297							537,758
Total Stockholders’ Equity(1)		51,179							47,392
Total liabilities and stockholders’ equity	$	662,476						$	585,150
Net interest-earning assets	$	173,952						$	167,519
Net interest income; average interest rate spread(2)			$	5,284		2.68	%			$	5,305		3.74	%
Net interest margin(3)						3.37	%						3.90	%
Average interest-earning assets to average interest-bearing liabilities						138.83	%						144.96	%

(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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Liquidity and Capital Resources

The 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. The Bank also adjusts liquidity as appropriate to meet asset and liability management objectives.

The 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, the Bank invests excess funds in short-term interest-earning accounts and other assets which provide liquidity to meet lending requirements.  The Bank’s deposit accounts with the Federal Home Loan Bank of Dallas amounted to $97,000 at September 30, 2023.

A significant portion of the Bank’s liquidity consists of securities classified as available-for-sale and cash and cash equivalents. The Bank’s primary sources of cash are net income, principal repayments on loans and mortgage-backed securities, and increases in deposit accounts.  If the Bank requires funds beyond its ability to generate them internally, borrowing agreements exist with the Federal Home Loan Bank of Dallas which provides an additional source of funds.  At September 30, 2023, The Bank had $4.6 million in advances from the Federal Home Loan Bank of Dallas and had $198.1 million in additional borrowing capacity.  Additionally, at September 30, 2023, the 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 September 30, 2023. In addition, the Company had available an $11.0 million line of credit agreement at September 30, 2023 with First National Bankers Bank. At September 30, 2023, there was an $8.9 million balance in the credit line.

At September 30, 2023, the Bank had outstanding loan commitments of $53.0 million to originate loans and commitments under unused lines of credit of $13.1 million. At September 30, 2023, certificates of deposit scheduled to mature in less than one year totaled $179.0 million. Based on prior experience, management believes that a significant portion of such deposits will remain with us, although there can be no assurance that this will be the case. In addition, the cost of such deposits could be significantly higher upon renewal in a rising interest rate environment.  The Bank intends to utilize its high levels of liquidity to fund its lending activities.  If additional funds are required to fund lending activities, Home Federal Bank intends to sell its securities classified as available-for-sale, as needed.

At September 30, 2023, the Bank exceeded each of its regulatory capital requirements with tangible equity, common equity Tier 1, core, and total risk-based capital ratios of 8.91%, 12.76%, 8.91%, and 13.87%, respectively.

Off-Balance Sheet Arrangements

At September 30, 2023, 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; legislative and regulatory changes; 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, 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.

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PART II

ITEM 1. LEGAL PROCEEDINGS

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

ITEM 1A. RISK FACTORS

Not applicable.

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

(a) Not applicable.

(b) Not applicable.

(c) Purchases of Equity Securities

The Company did not repurchase any of its common stock during the quarter ended September 30, 2023, 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)
July 1, 2023 – July 31, 2023		-	$	-		-		-
August 1, 2023 – August 31, 2023		-		-		-		-
September 1, 2023 – September 30, 2023		-		-		-		-
Total		-	$	-		-		-

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	Inline XBRL Instance Document
101.SCH	Inline XBRL Taxonomy Extension Schema Document
101.CAL	Inline XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	Inline XBRL Taxonomy Extension Label Linkbase Document
101.PRE	Inline XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF 104	Inline XBRL Taxonomy Extension Definitions Linkbase Document Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

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SIGNATURES

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

	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Date:   November 13, 2023		/s/ Glen W. Brown
	By:	Glen W. Brown
		Senior Vice President and Chief Financial Officer
		(Duly authorized officer and principal financial and
		accounting officer)

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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: November 13, 2023	/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:November 13, 2023
	/s/ Glen W. Brown
	Glen W. Brown
	Senior Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32

EXHIBIT 32

SECTION 1350 CERTIFICATIONS

The undersigned executive officers of Home Federal Bancorp, Inc. of Louisiana (the “Registrant”) hereby certify that the Registrant's Form 10-Q for the quarter ended September 30, 2023 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	November 13, 2023		/s/ James R. Barlow
		Name:	James R. Barlow
		Title:	Chairman of the Board, President and
			Chief Executive Officer
			(Principal Executive Officer)
Date:	November 13, 2023		/s/ Glen W. Brown
		Name:	Glen W. Brown
		Title:	Senior Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

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

XML

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2023	Nov. 09, 2023
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Sep. 30, 2023
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Document Transition Report	false
Entity File Number	001-35019
Entity Registrant Name	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Entity Central Index Key	0001500375
Entity Incorporation, State or Country Code	LA
Entity Tax Identification Number	02-0815311
Entity Address, Address Line One	624 Market Street
Entity Address, City or Town	Shreveport
Entity Address, State or Province	LA
Entity Address, Postal Zip Code	71101
City Area Code	318
Local Phone Number	222-1145
Title of 12(b) Security	Common Stock (par value $0.01 per share)
Trading Symbol	HFBL
Security Exchange Name	NASDAQ
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		3,133,351

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $1,557 and $22,215 September 30, 2023 and June 30, 2023, Respectively)	$ 8,878	$ 24,765
Securities Available-for-Sale (amortized cost September 30, 2023: $44,736; June 30, 2023: $42,910, Respectively)	40,409	39,551
Securities Held-to-Maturity (fair value September 30, 2023: $57,557; June 30, 2023: $61,222, Respectively)	72,806	74,423
Loans Held-for-Sale	589	4
Loans Receivable, Net of Allowance for Credit Losses (September 30, 2023: $5,102; June 30, 2023: $5,173, Respectively)	506,599	489,493
Accrued Interest Receivable	1,907	1,790
Premises and Equipment, Net	16,978	16,561
Bank Owned Life Insurance	6,725	6,700
Goodwill	2,990	2,990
Core Deposit Intangible	1,439	1,533
Deferred Tax Asset	1,460	1,313
Real Estate Owned	561	368
Other Assets	1,261	1,424
Total Assets	662,602	660,915
Deposits:
Non-interest bearing	146,057	145,553
Interest-bearing	446,448	451,808
Total Deposits	592,505	597,361
Advances from Borrowers for Taxes and Insurance	715	554
Short-term Federal Home Loan Bank Advances	4,600	0
Other Borrowings	8,850	8,550
Other Accrued Expenses and Liabilities	5,459	3,908
Total Liabilities	612,129	610,373
STOCKHOLDERS' EQUITY
Preferred Stock - $0.01 Par Value; 10,000,000 Shares Authorized; None Issued and Outstanding	0	0
Common Stock - $0.01 Par Value; 40,000,000 Shares Authorized: 3,133,351 Shares Issued and Outstanding at September 30, 2023 and June 30, 2023	31	31
Additional Paid-in Capital	41,057	40,981
Unearned ESOP Stock	(495)	(523)
Retained Earnings	13,346	12,707
Accumulated Other Comprehensive Loss	(3,466)	(2,654)
Total Stockholders' Equity	50,473	50,542
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 662,602	$ 660,915

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
ASSETS
Interest-Bearing Deposits with Other Banks	$ 1,557	$ 22,215
Securities Available-for-Sale, Amortized cost	44,736	42,910
Securities Held-to-Maturity, Fair Value	57,557	61,222
Loans Receivable, Allowance for Credit Losses	$ 5,102	$ 5,173
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)	3,133,351	3,133,351
Common Stock, Outstanding (in shares)	3,133,351	3,133,351

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023		Sep. 30, 2022
INTEREST INCOME
Loans, including fees	$ 7,274		$ 5,028
Investment securities	150		2
Mortgage-backed securities	473		489
Other interest-earning assets	177		262
Total interest income	8,074		5,781
INTEREST EXPENSE
Deposits	2,592		400
Federal Home Loan Bank borrowings	183		66
Other bank borrowings	15		10
Total interest expense	2,790		476
Net interest income	5,284		5,305
PROVISION FOR CREDIT LOSSES	0	[1]	418
Net interest income after provision for credit losses	5,284		4,887
NON-INTEREST INCOME
Gain on sale of loans	38		175
Loss on sale of real estate and fixed assets	(34)		0
Income on bank owned life insurance	26		26
Service charges on deposit accounts	391		335
Other income	13		10
Total non-interest income	434		546
NON-INTEREST EXPENSE
Compensation and benefits	2,356		2,282
Occupancy and equipment	549		501
Data processing	245		181
Audit and examination fees	102		75
Franchise and bank shares tax	156		119
Advertising	143		74
Professional fees	160		126
Loan and collection	60		52
Amortization core deposit intangible	94		0
Deposit insurance premium	91		47
Other expenses	232		296
Total non-interest expense	4,188		3,753
Income before income taxes	1,530		1,680
PROVISION FOR INCOME TAX EXPENSE	310		9
NET INCOME	$ 1,220		$ 1,671
EARNINGS PER SHARE:
Basic (in dollars per share)	$ 0.4		$ 0.55
Diluted (in dollars per share)	$ 0.39		$ 0.52

[1] Current provision included in the table only includes the portion related to loans receivable.

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net Income	$ 1,220	$ 1,671
Investment securities available-for-sale:
Net unrealized losses	(1,028)	(1,109)
Income tax effect	216	231
Other Comprehensive Loss	(812)	(878)
Total Comprehensive Income	$ 408	$ 793

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Common Stock [Member]	Common Stock [Member] Cumulative Effect Of Change In Accounting Principle - ASU 2016-13 [Member]	Additional Paid-In Capital [Member]	Additional Paid-In Capital [Member] Cumulative Effect Of Change In Accounting Principle - ASU 2016-13 [Member]	Unearned ESOP Stock [Member]	Unearned ESOP Stock [Member] Cumulative Effect Of Change In Accounting Principle - ASU 2016-13 [Member]	Retained Earnings [Member]	Retained Earnings [Member] Cumulative Effect Of Change In Accounting Principle - ASU 2016-13 [Member]	Accumulated Other Comprehensive Income (Loss) [Member]	Accumulated Other Comprehensive Income (Loss) [Member] Cumulative Effect Of Change In Accounting Principle - ASU 2016-13 [Member]	Total	Cumulative Effect Of Change In Accounting Principle - ASU 2016-13 [Member]
Beginning Balance at Jun. 30, 2022	$ 34		$ 40,145		$ (639)		$ 14,506		$ (1,699)		$ 52,347
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	0		0		0		1,671		0		1,671
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects	0	$ 0	0	$ 0	0	$ 0	0	$ 0	(878)	$ (812)	(878)	$ (812)
Stock Options Vested	0		26		0		0		0		26
Common Stock Issuance for Stock Option Exercises	0		147		0		0		0		147
ESOP Compensation Earned	0		82		29		0		0		111
Company Stock Purchased	(3)		0		0		(5,889)		0		(5,892)
Dividends Declared	0		0		0		(407)		0		(407)
Ending Balance at Sep. 30, 2022	31		40,400		(610)		9,881		(2,577)		47,125
Beginning Balance at Jun. 30, 2023	31	$ 0	40,981	$ 0	(523)	$ 0	12,707	$ (189)	(2,654)	$ 0	50,542	$ (189)
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Accounting Standards Update [Extensible Enumeration]								ASU 2016-13 [Member]				ASU 2016-13 [Member]
Net Income	0		0		0		1,220		0		1,220
Stock Options Vested	0		23		0		0		0		23
ESOP Compensation Earned	0		53		28		0		0		81
Dividends Declared	0		0		0		(392)		0		(392)
Ending Balance at Sep. 30, 2023	$ 31		$ 41,057		$ (495)		$ 13,346		$ (3,466)		$ 50,473

XML

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Dividends Declared (in dollars per share)	$ 0.13	$ 0.12

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2023		Sep. 30, 2022	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 1,220		$ 1,671
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Gain on Sale of Loans	(38)		(175)
Net Amortization and Accretion on Securities	107		3
Amortization of Deferred Loan Fees	(33)		(194)
Amortization of Purchased Loans	(419)		0
Provision for Credit Losses	0	[1]	418	$ 868
Depreciation of Premises and Equipment	224		218
Loss on Sales of Real Estate and Fixed Assets	34		0
ESOP Compensation Expense	81		111
Stock Option Expense	23		26
Deferred Income Tax Benefit	(147)		(323)
Federal Home Loan Bank Stock Dividend	17		1
Share Awards Expense	28		31
Increase in Cash Surrender Value on Bank Owned Life Insurance	(26)		(26)
Bad Debt Recovery	362		1
Loans Held-for-Sale - Originations and Purchases	(1,807)		(9,932)
Loans Held-for-Sale - Sale and Principal Repayments	1,222		12,097
Changes in Assets and Liabilities:
Accrued Interest Receivable	(117)		(126)
Other Operating Assets	163		103
Other Operating Liabilities	1,551		431
Net Cash Provided by Operating Activities	2,445		4,335
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections	(17,659)		(18,717)
Deferred Loan Fees Collected	16		93
Acquisition of Premises and Equipment	(656)		(106)
Proceeds from Sale of Real Estate and Fixed Assets	276		0
Improvements to Real Estate Owned Prior to Disposition	(38)		0
Activity in Available-for-Sale Securities:
Principal Payments on Securities	952		1,610
Purchase of Municipals	0		(570)
Purchase of Mortgage-Backed Securities	(2,667)		(4,806)
Purchase of US Treasury Notes	0		0
Activity in Held-to-Maturity Securities:
Purchase of Securities	0		0
Purchases of FHLB Stock	0		0
Principal Payments on Mortgage-Backed Securities	1,631		1,870
Net Cash Used in Investing Activities	(18,145)		(20,626)
CASH FLOWS FROM FINANCING ACTIVITIES
Net Decrease in Deposits	(4,856)		(8,231)
Proceeds from Advances from Federal Home Loan Bank	77,100		0
Repayments of Advances from Federal Home Loan Bank	(72,500)		(9)
Dividends Paid	(392)		(407)
Company Stock Purchased	0		(5,892)
Net Increase in Advances from Borrowers for Taxes and Insurance	161		136
Proceeds from Other Bank Borrowings	300		4,000
Proceeds from Stock Options Exercised	0		147
Net Cash Used in Financing Activities	(187)		(10,256)
NET DECREASE IN CASH AND CASH EQUIVALENTS	(15,887)		(26,547)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD	24,765		64,078	64,078
CASH AND CASH EQUIVALENTS - END OF PERIOD	8,878		37,531	$ 24,765
SUPPLEMENTARY CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	2,772		468
Market Value Adjustment for Loss on Securities Available-for-Sale	(812)		(1,109)
Transfer from Loans to Other Real Estate Owned	$ 465		$ 93

[1] Current provision included in the table only includes the portion related to loans receivable.

XML

Summary of Accounting Policies

3 Months Ended

Sep. 30, 2023

Summary of Accounting Policies [Abstract]

Summary of Accounting Policies

1. Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”). These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended September 30, 2023 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2024.

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 statement of financial condition date for potential recognition in the consolidated financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the statement of financial condition date are recognized in the consolidated financial statements as of September 30, 2023.  In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred through the date these consolidated 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 credit 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 ten full-service banking offices and home office, located in Caddo, Bossier and Webster Parishes, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City-Minden combined statistical area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of September 30, 2023, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Cash and Cash Equivalents

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

Securities

The discussion that follows describes the methodology for determining the allowance for credit loss (“ACL”) for investments under the ASU 2016-13 model that was adopted effective July 1, 2023. The allowance methodology for prior periods is disclosed in the Company’s 2023 Annual Report on Form 10-K.

Securities are being accounted for in accordance with FASB ASC 320’s, Investments, which requires 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 September 30, 2023 and June 30, 2023.

Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities. Securities are periodically reviewed for impairment. For debt securities in an unrealized loss position, the Company evaluates  the securities to determine whether the decline is in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors.  Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes.  For available for sale investments, credit related impairment is recognized as an ACL on the balance sheet, limited to the amount by which the amortized cost basis exceeds to the fair value, with a corresponding adjustment to earnings. For held to maturity investments, credit related impairment is recognized as an ACL on the balance sheet, for the entire amount of credit loss, with a corresponding adjustment to earnings.   Both the ACL and the adjustment to net income may be reversed if conditions change.  However, if the Company intends to sell an impaired available for sale security, or more likely than not will be required to sell such security before recovering the amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis.  Because the security’s amortized cost basis is adjusted to fair value, there is no ACL is such situation.  Accrued interest is receivable is excluded from the estimate of credit losses.

In evaluating securities in unrealized loss positions, for impairment and the criteria regarding intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by federal governments or its agencies, whether downgrades  by bond rating agencies have occurred, and the results of reviews of the issuer’s financial conditions, among other factors.

The Bank has invested in Federal Home Loan Bank (“FHLB”) stock, and other similar correspondent banks, which is reflected at cost in these consolidated financial statements. As a member of the FHLB System, the Bank is required to purchase and maintain stock in an amount determined by the FHLB. The FHLB stock is redeemable at par value at the discretion of the FHLB.

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 allowance for credit losses (“ACL”) 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 Credit Losses

The discussion that follows describes the methodology for determining the ACL under the new current expected credit loss (“CECL”) model that was implemented effective July 1, 2023 in accordance with ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. The allowance methodology for prior periods is disclosed in the Company’s 2023 Annual Report on Form 10-K.

The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

The ACL for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. The ACL is determined for two distinct categories of loans: 1) loans evaluated collectively for expected credit losses and 2) loans evaluated individually for expected credit losses. The ACL also includes certain qualitative adjustments to the ASU 2016-13 model.

Loans Evaluated Collectively. Homogeneous loans are evaluated collectively for expected credit losses. The loan pools/segments with similar risk characteristics were determined by Call Report codes.

Loans Evaluated Individually. Loans evaluated individually for expected credit losses could include loans on non-accrual status.

Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of nonperforming assets, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

Loans evaluated individually may have specific allocations assigned if the measured value of the loan using one of the noted techniques is less than its current carrying value. For loans measured using the fair value of collateral, if the analysis determines that sufficient collateral value would be available for repayment of the debt, then no allocations would be assigned to those loans. Collateral could be in the form of real estate or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification. For all loans, an internal risk rating process is used. The Company believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning risk ratings involves judgment. Risk ratings may be changed based on ongoing monitoring procedures, or if specific loan review assessments identify a deterioration or an improvement in the loan.

The following is a summary of the Company’s internal risk rating categories:

• Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.

• Special Mention: These loans have a heightened credit risk, but not to the point of justifying a classification of Substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.

• Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The allocation of the ACL is reviewed to evaluate its appropriateness in relation to the overall risk profile of the loan portfolio. The Company considers risk factors such as: local and national economic conditions; trends in delinquencies and non-accrual loans; the diversity of borrower industry types; and the composition of the portfolio by loan type.

Qualitative and Other Adjustments to Allowance for Credit Losses: In addition to the quantitative credit loss estimates for loans evaluated collectively, qualitative factors that may not be fully captured in the quantitative results are also evaluated. These include changes in lending policy, the nature and volume of the portfolio, overall business conditions in the economy, credit concentrations, competition, model imprecision, and legal and regulatory requirements. Qualitative adjustments are judgmental and are based on Management’s knowledge of the portfolio and the markets in which the Company operates. Qualitative adjustments are evaluated and approved on a quarterly basis. Additionally, the ACL includes other allowance categories that are not directly incorporated in the quantitative results. These include but are not limited to loans-in-process, trade acceptances and overdrafts.

Off Balance Sheet Credit Exposures. The ACL for off balance sheet credit exposures is recorded in other liabilities on the Consolidated Balance Sheet. This ACL represents management’s estimate of expected losses in its unfunded loan commitments and other off balance sheet credit exposures, such as letters of credit and credit recourse on sold residential mortgage loans. The allowance for credit losses specific to unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). The ACL for off balance sheet credit exposures is increased or decreased by charges or reductions to expense, through the provision for credit losses.  In addition to the ACL on loans held for investment, CECL requires a balance sheet liability for unfunded commitments, which is recognized if both of the following conditions are met: (1) the Company has a present contractual obligation to extend credit; and (2) the obligation is not unconditionally cancellable by the Company. Based on the language within the standard loan documents prepared for each HFB commitment, all unfunded commitments are considered unconditionally cancellable and thus no CECL ACL is allocated for the quarter.

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 costs 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 Bank 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 FASB 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 Company 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. The Company’s basic and diluted earnings per share were $0.40 and $0.39, respectively, for the three months ended September 30, 2023 compared to basic and diluted earnings per share of $0.55 and $0.52, respectively, for the three months ended September 30, 2022.

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 consolidated statements of income 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 statements of financial conditions along with net income, they are components of comprehensive income.

Critical Accounting Policies

During the quarter ended September 30, 2023, the Company implemented CECL accounting policies, procedures, and controls as part of its adoption of ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. There were no other changes made to the Company’s internal control over financial reporting that occurred during the quarter ended September 30, 2023 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Recent Accounting Pronouncements

ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The Company formed a cross-functional working group, who have worked through an implementation plan which includes assessment, review and documentation of various aspects of the implementation plan. After significant evaluation of approved methodologies, the Company determined to utilize a third-party vendor model, in which a weighted average remaining maturity methodology was appropriate for the size and complexity of the Company.  ASU 2016-13 is effective for the Company for annual and interim periods beginning on July 1, 2023. The Company adopted ASU 2016-13 in the first quarter of fiscal 2024. The adoption of the ASU 2016-13 resulted in an increase in the allowance for loan losses as a result of changing from an incurred loss model, which encompasses allowances for current known and inherent losses within the portfolio, to an expected loss model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The amount determined from adoption was recognized as a cumulative effective to the July 1, 2023 retained earnings.

Accounting Standards Update 2022-02 (“ASU 2022-02”), “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” In March 2022, the FASB issued ASU 2022-02 which eliminates the TDR recognition and measurement guidance and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. ASU 2022-02 also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for the Company for annual and interim periods beginning on July 1, 2023. The adoption of ASU 2022-02 did not have a significant impact on the Company’s consolidated financial statements other than the required disclosures.

The Company adopted ASU 2016-13 using the weighted average maturity method (WARM) for all financial assets measured at amortized cost, net of investments in leases and off balance sheet credit exposures. Results for reporting periods beginning after July 1, 2023 are presented under ASU 2016-13, while prior period results are reported in accordance with the previously applicable incurred loss methodology.

The following table presents the impact of adopting ASU 2016-13 on July 1, 2023 (in thousands):

Allowance for credit losses – loans:	Beginning Balance June 30, 2023		Impact of ASU 2016-13 Adoption			Provision for Credit Losses		Charge-offs			Recoveries		Ending Balance September 30, 2023
Real Estate Loans:
1-4 Family residential	$	1,900	$	688		$	-	$	(428	)	$	1	$	2,161
Commercial		1,673		(119	)		-		-			-		1,554
Multi-Family		228		(139	)		-		-			-		89
Land		274		(85	)		-		-			-		189
Construction		254		(44	)		-		-			-		210
Home Equity Loans and Lines of Credit		251		30			-		-			2		283
Commercial Loans		588		24			-		-			-		612
Consumer Loans		5		4			-		(5	)		-		4
Total allowance for credit losses	$	5,173	$	359		$	-	$	(433	)	$	3	$	5,102

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Securities

3 Months Ended

Sep. 30, 2023

Securities [Abstract]

Securities

2. Securities

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

	September 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	11,869	$	-	$	1,376	$	10,493
FNMA Mortgage-Backed Certificates		14,844		-		2,022		12,822
GNMA Mortgage-Backed Certificates		4,414		-		959		3,455
Total Debt Securities		31,127		-		4,357		26,770
US Treasury Securities		9,876		136		4		10,008
Municipals		3,733		2		104		3,631
Total Securities Available-for-Sale	$	44,736	$	138	$	4,465	$	40,409
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	619	$	-	$	80	$	539
FHLMC Mortgage-Backed Certificates		29,312		-		6,572		22,740
FNMA Mortgage-Backed Certificates		40,010		-		8,493		31,517
Total Debt Securities		69,941		-		15,145		54,796
Municipals		1,305		-		104		1,201
Equity Securities (Non-Marketable)
13,098 Shares – Federal Home Loan Bank		1,310		-		-		1,310
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		1,560		-		-		1,560
Total Securities Held-to-Maturity	$	72,806	$	-	$	15,249	$	57,557

	June 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	12,167	$	1	$	1,012	$	11,156
FNMA Mortgage-Backed Certificates		15,318		-		1,604		13,714
GNMA Mortgage-Backed Certificates		4,578		-		814		3,764
Total Debt Securities		32,063		1		3,430		28,634
US Treasury Securities		9,779		68		6		9,841
Municipal Bonds		1,068		11		3		1,076
Total Securities Available-for-Sale	$	42,910	$	80	$	3,439	$	39,551
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	623	$	-	$	63	$	560
FHLMC Mortgage-Backed Certificates		29,921		-		5,781		24,140
FNMA Mortgage-Backed Certificates		41,024		-		7,277		33,747
Total Debt Securities		71,568		-		13,121		58,447
Municipals		1,311		-		80		1,231
Equity Securities (Non-Marketable)
12,935 Shares – Federal Home Loan Bank		1,294		-		-		1,294
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		1,544		-		-		1,544
Total Securities Held-to-Maturity	$	74,423	$	-	$	13,201	$	61,222

The amortized cost and fair value of securities by contractual maturity at September 30, 2023 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
			(In Thousands)
Debt Securities
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		1		1		-		-
After Five through Ten Years		1,725		1,613		582		538
Over Ten Years		29,401		25,156		69,359		54,258
		31,127		26,770		69,941		54,796
US Treasury Securities
Within One Year or Less	$	7,877	$	8,008	$	-	$	-
One through Five Years		1,999		2,000		-		-
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		-		-
		9,876		10,008		-		-
Municipals
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		365		364		219		207
After Five through Ten Years		-		-		-		-
Over Ten Years		3,368		3,267		1,086		994
		3,733		3,631		1,305		1,201
Other Equity Securities		-		-		1,560		1,560
Total	$	44,736	$	40,409	$	72,806	$	57,557

Securities available-for-sale totaling $2.7 million were purchased during the three months ended September 30, 2023. There were no securities sold during the three months ended September 30, 2023.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale and held-to-maturity at September 30, 2023 and June 30, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 2023
	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		$	951		$	9,150		$	3,406		$	17,614
Municipals			104			2,293			-			-
US Treasury Securities			4			688			-			-
Total Securities Available-for-Sale		$	1,059		$	12,131		$	3,406		$	17,614

	September 30, 2023
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Held-to-Maturity
Mortgage-Backed Securities	$	-	$	-	$	15,145	$	54,796
Municipals		-		-		104		1,201
Total Securities Held-to-Maturity	$	-	$	-	$	15,249	$	55,997

The number of debt securities in an unrealized loss position was 65 at September 30, 2023.

	June 30, 2023
	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		$	618		$	9,109		$	2,811		$	18,892
Municipals			3			561			-			-
US Treasury Securities			8			2,186			-			-
Total Securities Available-for-Sale		$	629		$	11,856		$	2,811		$	18,892

	June 30, 2023
	Less Than Twelve Months						Over Twelve Months
	Gross						Gross
	Unrealized			Fair			Unrealized			Fair
	Losses			Value			Losses			Value
	(In Thousands)
Securities Held-to-Maturity
Mortgage-Backed Securities		$	215		$	1,859		$	12,907		$	56,587
Municipals			-			-			80		$	1,231
Total Securities Held-to-Maturity		$	215		$	1,859		$	12,987		$	57,818

The unrealized losses on the Company’s investment in mortgage-backed securities at September 30, 2023 and June 30, 2023 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 have an allowance for credit losses for these investments at September 30, 2023.

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

At September 30, 2023, securities with a carrying value of $10.6 million were pledged to secure public deposits and securities and mortgage loans with a carrying value of $198.1 million were pledged to secure FHLB advances.

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Loans Receivable

3 Months Ended

Sep. 30, 2023

Loans Receivable [Abstract]

Loans Receivable

3. Loans Receivable

Loans receivable are summarized as follows:

	September 30, 2023			June 30, 2023
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	186,002		$	179,579
Commercial		147,971			148,441
Multi-Family Residential		28,781			28,849
Land		30,473			26,841
Construction		33,984			28,035
Equity and Second Mortgage		2,488			2,450
Equity Lines of Credit		24,371			23,817
Total Mortgage Loans		454,070			438,012
Commercial Loans		56,328			55,364
Consumer Loans
Loans on Savings Accounts		367			372
Other Consumer Loans		1,082			1,082
Total Consumer Other Loans		1,449			1,454
Total Loans		511,847			494,830
Less:  Allowance for Credit Losses		(5,102	)		(5,173	)
Unamortized Loan Fees		(146	)		(164	)
Net Loans Receivable	$	506,599		$	489,493

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

	Three Months Ended			Three Months Ended
	September 30, 2023			June 30, 2023
	(In Thousands)
Balance - Beginning of Period	$	5,173		$	4,451
Impact of ASU 2016-13		359			-
Provision for Credit Losses		-			868
Loan Charge-Offs		(433	)		(237	)
Recoveries		3			91
Balance - End of Period	$	5,102		$	5,173

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. Once a loan has been classified as substandard or identified as special mention, management will conduct a quarterly review to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category. The delinquent loan report is monitored monthly to determine if any loan needs to be evaluated for classification or impairment.

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. All loans greater than 90 days past due are generally placed on nonaccrual status. 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 costs 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 Bank’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 Bank 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 table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2023:

	Term Loans Amortized Cost by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	71,365	$	39,132	$	37,026	$	20,890	$	2,421	$	12,478	$	41	$	183,353
Special mention		971		-		-		-		-		322		-		1,293
Substandard		297		136		-		768		-		155		-		1,356
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential	$	72,633	$	39,268	$	37,026	$	21,658	$	2,421	$	12,955	$	41	$	186,002
Current period gross charge-offs	$	-	$	428	$	-	$	-	$	-	$	-	$	-	$	428
Commercial
Risk rating
Pass	$	23,431	$	43,795	$	44,350	$	20,007	$	1,900	$	1,013	$	11,560	$	146,056
Special mention		331		-		-		-		-		-		-		331
Substandard		975		-		-		609		-		-		-		1,584
Doubtful		-		-		-		-		-		-		-		-
Total commercial	$	24,737	$	43,795	$	44,350	$	20,616	$	1,900	$	1,013	$	11,560	$	147,971
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
	(In Thousands)
Multi-family residential
Risk rating
Pass	$	2,118	$	4,051	$	2,291	$	7,168	$	6,006	$	5,873	$	1,274	$	28,781
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	2,118	$	4,051	$	2,291	$	7,168	$	6,006	$	5,873	$	1,274	$	28,781
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	9,086	$	6,581	$	4,972	$	1,257	$	96	$	341	$	7,782	$	30,115
Special mention		50		308		-		-		-		-		-		358
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total land	$	9,136	$	6,889	$	4,972	$	1,257	$	96	$	341	$	7,782	$	30,473
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Risk rating
Pass	$	7,251	$	3,753	$	-	$	-	$	-	$	-	$	22,980	$	33,984
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	7,251	$	3,753	$	-	$	-	$	-	$	-	$	22,980	$	33,984
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	6,733	$	2,106	$	4,354	$	583	$	26	$	1,793	$	11,201	$	26,796
Special mention		-		-		-		-		-		-		-		-
Substandard		63		-		-		-		-		-		-		63
Doubtful		-		-		-		-		-		-		-		-
Total home equity and lines of credit	$	6,796	$	2,106	$	4,354	$	583	$	26	$	1,793	$	11,201	$	26,859
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk rating
Pass	$	15,582	$	9,888	$	7,758	$	6,193	$	2,012	$	11	$	12,091	$	53,535
Special mention		1,198		-		402		19		-		-		990		2,609
Substandard		137		5		42		-		-		-		-		184
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	16,917	$	9,893	$	8,202	$	6,212	$	2,012	$	11	$	13,081	$	56,328
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Risk rating
Pass	$	1,040	$	53	$	-	$	270	$	46	$	-	$	19	$	1,428
Special mention		-		-		-		-		-		-		-		-
Substandard		21		-		-		-		-		-		-		21
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	1,061	$	53	$	-	$	270	$	46	$	-	$	19	$	1,449
Current period gross charge-offs	$	5	$	-	$	-	$	-	$	-	$	-	$	-	$	5
Total
Pass	$	136,606	$	109,359	$	100,751	$	56,368	$	12,507	$	21,509	$	66,948	$	504,048
Special mention		2,550		308		402		19		-		322		990		4,591
Substandard		1,493		141		42		1,377		-		155		-		3,208
Doubtful		-		-		-		-		-		-		-		-
Total	$	140,649	$	109,808	$	101,195	$	57,764	$	12,507	$	21,986	$	67,938	$	511,847
Current period gross charge-offs	$	5	$	428	$	-	$	-	$	-	$	-	$	-	$	433

The information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents the most comparable required information for the prior period, internal credit risk ratings for the indicated loan class segments as of June 30, 2023:

June 30, 2023	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	176,536	$	810	$	2,233	$	-	$	179,579
Commercial		146,787		-		1,654		-		148,441
Multi-Family Residential		28,849		-		-		-		28,849
Land		26,841		-		-		-		26,841
Construction		28,035		-		-		-		28,035
Equity and Second Mortgage		2,381		-		69		-		2,450
Equity Lines of Credit		23,817		-		-		-		23,817
Commercial Loans		53,025		2,339		-		-		55,364
Consumer Loans		1,432		1		21		-		1,454
Total	$	487,703	$	3,150	$	3,977	$	-	$	494,830

The following tables present an aging analysis of past due loans, segregated by class of loans, as of September 30, 2023 and June 30, 2023:

September 30, 2023	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	$	216	$	257	$	914	$	1,387	$	184,615	$	186,002	$	-
Commercial		-		-		-		-		147,971		147,971		-
Multi-Family Residential		-		-		-		-		28,781		28,781		-
Land		308		-		-		308		30,165		30,473		-
Construction		-		-		-		-		33,984		33,984		-
Equity and Second Mortgage		-		-		-		-		2,488		2,488		16
Equity Lines of Credit		116		110		16		242		24,129		24,371		-
Commercial Loans		108		43		47		198		56,130		56,328		47
Consumer Loans		1		4		5		10		1,439		1,449		5
Total	$	749	$	414	$	982	$	2,145	$	509,702	$	511,847	$	68

June 30, 2023	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	$	177	$	750	$	1,174	$	2,101	$	177,478	$	179,579	$	-
Commercial		-		-		-		-		148,441		148,441		-
Multi-Family Residential		-		-		-		-		28,849		28,849		-
Land		36		-		-		36		26,805		26,841		-
Construction		-		-		-		-		28,035		28,035		-
Equity and Second Mortgage		54		-		-		54		2,396		2,450		-
Equity Lines of Credit		-		-		-		-		23,817		23,817		-
Commercial Loans		63		-		-		63		55,301		55,364		-
Consumer Loans		-		-		-		-		1,454		1,454		-
Total	$	330	$	750	$	1,174	$	2,254	$	492,576	$	494,830	$	-

There was no interest income recognized on non-accrual loans during the three months ended September 30, 2023 or the year ended June 30, 2023. If the non-accrual loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the three months ended September 30, 2023 and the year ended June 30, 2023 was approximately $102,000 and $182,000, respectively.

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2023 and year ended June 30, 2023 was as follows:

	Real Estate Loans
September 30, 2023	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 credit losses:
Beginning Balances	$	1,900		$	1,673		$	228		$	274		$	254		$	251	$	588	$	5		$	5,173
Impact of ASU 2016-13		688			(119	)		(139	)		(85	)		(44	)		30		24		4			359
Charge-Offs		(428	)		-			-			-			-			-		-		(5	)		(433	)
Recoveries		1			-			-			-			-			2		-		-			3
Current Provision(1)		-			-			-			-			-			-		-		-			-
Ending Balances	$	2,161		$	1,554		$	89		$	189		$	210		$	283	$	612	$	4		$	5,102

(1) Current provision included in the table only includes the portion related to loans receivable.

	Real Estate Loans
June 30, 2023	Residential			Commercial		Multi- Family			Land			Construction			Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans		Total
									(In Thousands)
Allowance for credit losses:
Beginning Balances	$	1,367		$	1,295	$	357		$	305		$	282		$	197		$	646		$	2	$	4,451
Charge-Offs		(41	)		-		-			-			-			(26	)		(170	)		-		(237	)
Recoveries		4			-		-			-			-			5			82			-		91
Current Provision		570			378		(129	)		(31	)		(28	)		75			30			3		868
Ending Balances	$	1,900		$	1,673	$	228		$	274		$	254		$	251		$	588		$	5	$	5,173
Evaluated for Impairment:
Individually		495			100		-			-			-			4			29			-		628
Collectively		1,405			1,573		228			274			254			247			559			5		4,545
Loans Receivable:
Ending Balances – Total	$	179,579		$	148,441	$	28,849		$	26,841		$	28,035		$	26,267		$	55,364		$	1,454	$	494,830
Ending Balances:
Evaluated for Impairment:
Individually		3,043			1,654		-			-			-			69			2,339			22		7,127
Collectively	$	176,536		$	146,787	$	28,849		$	26,841		$	28,035		$	26,198		$	53,025		$	1,432	$	487,703

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of September 30, 2023 and June 30, 2023:

September 30, 2023	Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	3,536	$	127
Commercial		-		-
Multi-Family Residential		-		-
Land		171		6
Construction		69		2
Equity and Second Mortgage		-		-
Equity Lines of Credit		-		-
Commercial Loans		7,840		8
Consumer Loans		346		5
Total	$	11,962	$	148

The balances of loans individually evaluated for impairment were similar at July 1, 2023 and September 30, 2023.

June 30, 2023	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	$	2,559	$	156	$	2,403	$	2,559	$	495	$	3,644
Commercial		1,617		-		1,617		1,617		100		1,675
Multi-Family Residential		-		-		-		-		-		-
Land		-		-		-		-		-		-
Construction		-		-		-		-		-		-
Equity and Second Mortgage		-		-		-		-		-		63
Equity Lines of Credit		-		-		-		-		-		-
Commercial Loans		2,197		37		2,160		2,197		29		2,659
Consumer Loans		-		-		-		-		-		23
Purchased Credit Impaired		754		685		69		754		4		754
Total	$	7,127	$	878	$	6,249	$	7,127	$	628	$	8,818

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. As of September 30, 2023, there were no residential loans in the process of foreclosure.

Prior to the adoption of ASU 2022-02, Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures, the Company had granted a variety of concessions to borrowers in the form of loan modifications that were considered TDRs. At June 30, 2023, the Company had one loan totaling $10,000 that was identified as a troubled debt restructuring. This loan was performing in accordance with its modified terms as of June 30, 2023.

As of September 30, 2023, there were no loans whose terms were modified for borrowers who may be experiencing financial difficulties.

At September 30, 2023 and June 30, 2023, accrued interest receivable on loans was $1.7 million and $1.6 million, respectively, and included within accrued interest receivable on the consolidated balance sheets.

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Deposits

3 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Deposits

4. Deposits

Deposits at September 30, 2023 and June 30, 2023 consist of the following classifications:

	September 30, 2023		June 30, 2023
	(In Thousands)
Non-Interest Bearing	$	146,057	$	145,553
NOW Accounts		63,613		65,335
Money Markets		104,580		114,195
Passbook Savings		75,747		81,895
		389,997		406,978
Certificates of Deposit		202,508		190,383
Total Deposits	$	592,505	$	597,361

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Earnings Per Share

3 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Share

5. Earnings Per Share

Basic earnings per common share is computed based on the weighted average number of shares outstanding.  Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of dilutive securities. Earnings per share for the three months ended September 30, 2023 and 2022 were calculated as follows:

	Three Months Ended September 30,
	2023		2022
	(In Thousands, Except Per Share Data)
Net income	$	1,220	$	1,671
Weighted average shares outstanding – basic		3,029		3,066
Effect of dilutive common stock equivalents		79		162
Adjusted weighted average shares outstanding – diluted		3,108		3,228
Basic earnings per share	$	0.40	$	0.55
Diluted earnings per share	$	0.39	$	0.52

For the three months ended September 30, 2023 and 2022, there were outstanding options to purchase 364,916 and 389,616 shares, respectively, at a weighted average exercise price of $11.65 and $11.81 per share, respectively. For the quarter ended September 30, 2023 and 2022, 79,237 options and 161,866 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 September 30,
	2023			2022
	(In Thousands)
Average common shares issued		6,125			6,125
Average unearned ESOP shares		(102	)		(125	)
Average Company stock purchased		(2,994	)		(2,934	)
Weighted average shares outstanding		3,029			3,066

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Stock-Based Compensation

3 Months Ended

Sep. 30, 2023

Stock-Based Compensation [Abstract]

Stock-Based Compensation

6. Stock-Based Compensation

Stock Option Plans

On August 10, 2005, the stockholders 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 4,266 outstanding options as of September 30, 2023 will remain in effect for the remainder of their original ten year terms.

On December 23, 2011, the stockholders 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 (as adjusted). The 2011 Option Plan terminated on December 23, 2021; however, the 37,350 outstanding options as of September 30, 2023 will remain in effect for the remainder of their original ten year term.

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 Plans

On November 12, 2014, the stockholders 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 (as adjusted), of which no more than 74,000 shares (as adjusted), 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 (as adjusted), 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 November 13, 2019, the stockholders 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 (as adjusted) reserved for future issuance as stock awards or stock options. No more than 62,500 shares (as adjusted), 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 September 30, 2023, there are 1,600 plan share awards and 23,000 stock options available for future grants under the Stock Incentive Plans.

For both the three months ended September 30, 2023 and 2022, compensation expense charged to operations for stock options granted under the 2011 Option Plan and the Stock Incentive Plans was $26,000.

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Related Party Transactions

3 Months Ended

Sep. 30, 2023

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 $4.2 million and $4.4 million at September 30, 2023 and June 30, 2023, respectively.

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Fair Value Disclosures

3 Months Ended

Sep. 30, 2023

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 September 30, 2023 and June 30, 2023, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	September 30, 2023				June 30, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,878	$	8,878	$	24,765	$	24,765
Securities Available-for-Sale		40,409		40,409		39,551		39,551
Securities to be Held-to-Maturity		72,806		57,557		74,423		61,222
Loans Held-for-Sale		589		589		4		4
Loans Receivable		506,599		465,463		489,493		444,117
Financial Liabilities
Deposits	$	592,505	$	500,015	$	597,361	$	481,055
Advances from FHLB		4,600		4,600		-		-
Other Borrowings		8,850		8,850		8,550		8,550
Off-Balance Sheet Items
Mortgage Loan Commitments	$	13,127	$	13,127	$	13,277	$	13,277

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 upon inputs 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 three months ended September 30, 2023.

Fair values of assets and liabilities measured on a recurring basis at September 30, 2023 and June 30, 2023 are as follows:

	Fair Value Measurements
September 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	10,493	$	-	$	10,493
FNMA		-		12,822		-		12,822
GNMA		-		3,455		-		3,455
US Treasury Notes		-		10,008		-		10,008
Municipal Bonds		-		3,631		-		3,631
Total	$	-	$	40,409	$	-	$	40,409

	Fair Value Measurements
June 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	11,156	$	-	$	11,156
FNMA		-		13,714		-		13,714
GNMA		-		3,764		-		3,764
US Treasury Notes		-		9,841		-		9,841
Municipal Bonds		-		1,076		-		1,076
Total	$	-	$	39,551	$	-	$	39,551

Fair values of assets and liabilities measured on a non-recurring basis at September 30, 2023 and June 30, 2023 are as follows:

	Fair Value Measurements
September 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	11,814	$	11,814
Other Real Estate Owned,
Net of Allowance	$	-	$	-	$	562	$	562
Total	$	-	$	-	$	12,376	$	12,376

	Fair Value Measurements
June 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	701	$	701
Other Real Estate Owned,
Net of Allowance	$	-	$	-	$	330	$	330
Total	$	-	$	-	$	1,031	$	1,031

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Leases

3 Months Ended

Sep. 30, 2023

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. 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. Right-of-use (“ROU”) assets and corresponding lease liabilities are recognized on the consolidated statements of condition under other assets and other accrued expenses and liabilities, respectively.

At September 30, 2023 and June 30, 2023, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows.

(In Thousands)		September 30, 2023		June 30, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	829	$	829
Total Lease Right-of-Use Assets		$	829	$	829
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	866	$	866
Total Lease Liabilities		$	866	$	866

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.

	September 30, 2023			June 30, 2023
Weighted-average remaining lease term
Operating leases	35.1 years			35.4 years
Weighted-average discount rate
Operating leases		3.00	%		3.00	%

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Summary of Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2023

Summary of Accounting Policies [Abstract]

Basis of Presentation

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank (“Home Federal Bank” or the “Bank”). These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended September 30, 2023 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2024.

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 statement of financial condition date for potential recognition in the consolidated financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the statement of financial condition date are recognized in the consolidated financial statements as of September 30, 2023.  In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred through the date these consolidated 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 credit 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 ten full-service banking offices and home office, located in Caddo, Bossier and Webster Parishes, Louisiana. The area served by the Bank is primarily the Shreveport-Bossier City-Minden combined statistical area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of September 30, 2023, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Cash and Cash Equivalents

Cash and Cash Equivalents

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

Securities

Securities

The discussion that follows describes the methodology for determining the allowance for credit loss (“ACL”) for investments under the ASU 2016-13 model that was adopted effective July 1, 2023. The allowance methodology for prior periods is disclosed in the Company’s 2023 Annual Report on Form 10-K.

Securities are being accounted for in accordance with FASB ASC 320’s, Investments, which requires 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 September 30, 2023 and June 30, 2023.

Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities. Securities are periodically reviewed for impairment. For debt securities in an unrealized loss position, the Company evaluates  the securities to determine whether the decline is in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors.  Any impairment that is not credit related is recognized in other comprehensive income, net of applicable taxes.  For available for sale investments, credit related impairment is recognized as an ACL on the balance sheet, limited to the amount by which the amortized cost basis exceeds to the fair value, with a corresponding adjustment to earnings. For held to maturity investments, credit related impairment is recognized as an ACL on the balance sheet, for the entire amount of credit loss, with a corresponding adjustment to earnings.   Both the ACL and the adjustment to net income may be reversed if conditions change.  However, if the Company intends to sell an impaired available for sale security, or more likely than not will be required to sell such security before recovering the amortized cost basis, the entire impairment amount must be recognized in earnings with a corresponding adjustment to the security’s amortized cost basis.  Because the security’s amortized cost basis is adjusted to fair value, there is no ACL is such situation.  Accrued interest is receivable is excluded from the estimate of credit losses.

In evaluating securities in unrealized loss positions, for impairment and the criteria regarding intent or requirement to sell such securities, the Company considers the extent to which fair value is less than amortized cost, whether the securities are issued by federal governments or its agencies, whether downgrades  by bond rating agencies have occurred, and the results of reviews of the issuer’s financial conditions, among other factors.

The Bank has invested in Federal Home Loan Bank (“FHLB”) stock, and other similar correspondent banks, which is reflected at cost in these consolidated financial statements. As a member of the FHLB System, the Bank is required to purchase and maintain stock in an amount determined by the FHLB. The FHLB stock is redeemable at par value at the discretion of the FHLB.

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 allowance for credit losses (“ACL”) 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 Credit Losses

Allowance for Credit Losses

The discussion that follows describes the methodology for determining the ACL under the new current expected credit loss (“CECL”) model that was implemented effective July 1, 2023 in accordance with ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. The allowance methodology for prior periods is disclosed in the Company’s 2023 Annual Report on Form 10-K.

The Company has elected to exclude accrued interest receivable from the measurement of its ACL. When a loan is placed on non-accrual status, any outstanding accrued interest is reversed against interest income.

The ACL for loans is an estimate of the expected losses to be realized over the life of the loans in the portfolio. The ACL is determined for two distinct categories of loans: 1) loans evaluated collectively for expected credit losses and 2) loans evaluated individually for expected credit losses. The ACL also includes certain qualitative adjustments to the ASU 2016-13 model.

Loans Evaluated Collectively. Homogeneous loans are evaluated collectively for expected credit losses. The loan pools/segments with similar risk characteristics were determined by Call Report codes.

Loans Evaluated Individually. Loans evaluated individually for expected credit losses could include loans on non-accrual status.

Management estimates the allowance balance using relevant available information from internal and external sources relating to past events, current conditions and reasonable and supportable forecasts. Adjustments to historical loss information are made to incorporate our reasonable and supportable forecast of future losses at the portfolio segment level, as well as any necessary qualitative adjustments, including, but not limited to, changes in current and expected future economic conditions, changes in industry experience and industry loan concentrations, changes in the volume and severity of nonperforming assets, changes in lending policies and personnel and changes in the competitive and regulatory environment of the banking industry. Loans that do not share similar risk characteristics are individually evaluated and are excluded from the pooled loan analysis.

Loans evaluated individually may have specific allocations assigned if the measured value of the loan using one of the noted techniques is less than its current carrying value. For loans measured using the fair value of collateral, if the analysis determines that sufficient collateral value would be available for repayment of the debt, then no allocations would be assigned to those loans. Collateral could be in the form of real estate or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real estate.

Management regularly reviews loans in the portfolio to assess credit quality indicators and to determine appropriate loan classification. For all loans, an internal risk rating process is used. The Company believes that internal risk ratings are the most relevant credit quality indicator for these types of loans. The migration of loans through the various internal risk rating categories is a significant component of the ACL methodology for these loans, which bases the probability of default on this migration. Assigning risk ratings involves judgment. Risk ratings may be changed based on ongoing monitoring procedures, or if specific loan review assessments identify a deterioration or an improvement in the loan.

The following is a summary of the Company’s internal risk rating categories:

• Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.

• Special Mention: These loans have a heightened credit risk, but not to the point of justifying a classification of Substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.

• Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The allocation of the ACL is reviewed to evaluate its appropriateness in relation to the overall risk profile of the loan portfolio. The Company considers risk factors such as: local and national economic conditions; trends in delinquencies and non-accrual loans; the diversity of borrower industry types; and the composition of the portfolio by loan type.

Qualitative and Other Adjustments to Allowance for Credit Losses: In addition to the quantitative credit loss estimates for loans evaluated collectively, qualitative factors that may not be fully captured in the quantitative results are also evaluated. These include changes in lending policy, the nature and volume of the portfolio, overall business conditions in the economy, credit concentrations, competition, model imprecision, and legal and regulatory requirements. Qualitative adjustments are judgmental and are based on Management’s knowledge of the portfolio and the markets in which the Company operates. Qualitative adjustments are evaluated and approved on a quarterly basis. Additionally, the ACL includes other allowance categories that are not directly incorporated in the quantitative results. These include but are not limited to loans-in-process, trade acceptances and overdrafts.

Off Balance Sheet Credit Exposures. The ACL for off balance sheet credit exposures is recorded in other liabilities on the Consolidated Balance Sheet. This ACL represents management’s estimate of expected losses in its unfunded loan commitments and other off balance sheet credit exposures, such as letters of credit and credit recourse on sold residential mortgage loans. The allowance for credit losses specific to unfunded commitments is determined by estimating future draws and applying the expected loss rates on those draws. Future draws are based on historical averages of utilization rates (i.e., the likelihood of draws taken). The ACL for off balance sheet credit exposures is increased or decreased by charges or reductions to expense, through the provision for credit losses.  In addition to the ACL on loans held for investment, CECL requires a balance sheet liability for unfunded commitments, which is recognized if both of the following conditions are met: (1) the Company has a present contractual obligation to extend credit; and (2) the obligation is not unconditionally cancellable by the Company. Based on the language within the standard loan documents prepared for each HFB commitment, all unfunded commitments are considered unconditionally cancellable and thus no CECL ACL is allocated for the quarter.

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 costs 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 Bank 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 FASB 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 Company 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. The Company’s basic and diluted earnings per share were $0.40 and $0.39, respectively, for the three months ended September 30, 2023 compared to basic and diluted earnings per share of $0.55 and $0.52, respectively, for the three months ended September 30, 2022.

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 consolidated statements of income 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 statements of financial conditions along with net income, they are components of comprehensive income.

Critical Accounting Policies

Critical Accounting Policies

During the quarter ended September 30, 2023, the Company implemented CECL accounting policies, procedures, and controls as part of its adoption of ASU No. 2016-13 and subsequent ASUs issued to amend ASC Topic 326. There were no other changes made to the Company’s internal control over financial reporting that occurred during the quarter ended September 30, 2023 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

Recent Accounting Pronouncements

Recent Accounting Pronouncements

ASU 2016-13, “Financial Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments.” In June 2016, the FASB issued ASU 2016-13 which requires earlier measurement of credit losses and enhances disclosures. The main objective of ASU 2016-13 is to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. The Company formed a cross-functional working group, who have worked through an implementation plan which includes assessment, review and documentation of various aspects of the implementation plan. After significant evaluation of approved methodologies, the Company determined to utilize a third-party vendor model, in which a weighted average remaining maturity methodology was appropriate for the size and complexity of the Company.  ASU 2016-13 is effective for the Company for annual and interim periods beginning on July 1, 2023. The Company adopted ASU 2016-13 in the first quarter of fiscal 2024. The adoption of the ASU 2016-13 resulted in an increase in the allowance for loan losses as a result of changing from an incurred loss model, which encompasses allowances for current known and inherent losses within the portfolio, to an expected loss model, which encompasses allowances for losses expected to be incurred over the life of the portfolio. The amount determined from adoption was recognized as a cumulative effective to the July 1, 2023 retained earnings.

Accounting Standards Update 2022-02 (“ASU 2022-02”), “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures.” In March 2022, the FASB issued ASU 2022-02 which eliminates the TDR recognition and measurement guidance and instead requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. ASU 2022-02 also enhances existing disclosure requirements and introduces new requirements related to certain modifications of receivables made to borrowers experiencing financial difficulty. For public business entities, these amendments require that an entity disclose current period gross write-offs by year of origination for financing receivables and net investment in leases within the scope of Subtopic 326-20. Gross write-off information must be included in the vintage disclosures required for public business entities in accordance with paragraph 326-20-50-6, which requires that an entity disclose the amortized cost basis of financing receivables by credit quality indicator and class of financing receivable by year of origination. ASU 2022-02 is effective for the Company for annual and interim periods beginning on July 1, 2023. The adoption of ASU 2022-02 did not have a significant impact on the Company’s consolidated financial statements other than the required disclosures.

The Company adopted ASU 2016-13 using the weighted average maturity method (WARM) for all financial assets measured at amortized cost, net of investments in leases and off balance sheet credit exposures. Results for reporting periods beginning after July 1, 2023 are presented under ASU 2016-13, while prior period results are reported in accordance with the previously applicable incurred loss methodology.

The following table presents the impact of adopting ASU 2016-13 on July 1, 2023 (in thousands):

Allowance for credit losses – loans:	Beginning Balance June 30, 2023		Impact of ASU 2016-13 Adoption			Provision for Credit Losses		Charge-offs			Recoveries		Ending Balance September 30, 2023
Real Estate Loans:
1-4 Family residential	$	1,900	$	688		$	-	$	(428	)	$	1	$	2,161
Commercial		1,673		(119	)		-		-			-		1,554
Multi-Family		228		(139	)		-		-			-		89
Land		274		(85	)		-		-			-		189
Construction		254		(44	)		-		-			-		210
Home Equity Loans and Lines of Credit		251		30			-		-			2		283
Commercial Loans		588		24			-		-			-		612
Consumer Loans		5		4			-		(5	)		-		4
Total allowance for credit losses	$	5,173	$	359		$	-	$	(433	)	$	3	$	5,102

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Summary of Accounting Policies (Tables)

3 Months Ended

Sep. 30, 2023

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

Impact of Adopting ASU 2016-13

The following table presents the impact of adopting ASU 2016-13 on July 1, 2023 (in thousands):

Allowance for credit losses – loans:	Beginning Balance June 30, 2023		Impact of ASU 2016-13 Adoption			Provision for Credit Losses		Charge-offs			Recoveries		Ending Balance September 30, 2023
Real Estate Loans:
1-4 Family residential	$	1,900	$	688		$	-	$	(428	)	$	1	$	2,161
Commercial		1,673		(119	)		-		-			-		1,554
Multi-Family		228		(139	)		-		-			-		89
Land		274		(85	)		-		-			-		189
Construction		254		(44	)		-		-			-		210
Home Equity Loans and Lines of Credit		251		30			-		-			2		283
Commercial Loans		588		24			-		-			-		612
Consumer Loans		5		4			-		(5	)		-		4
Total allowance for credit losses	$	5,173	$	359		$	-	$	(433	)	$	3	$	5,102

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Securities (Tables)

3 Months Ended

Sep. 30, 2023

Securities [Abstract]

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

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

	September 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	11,869	$	-	$	1,376	$	10,493
FNMA Mortgage-Backed Certificates		14,844		-		2,022		12,822
GNMA Mortgage-Backed Certificates		4,414		-		959		3,455
Total Debt Securities		31,127		-		4,357		26,770
US Treasury Securities		9,876		136		4		10,008
Municipals		3,733		2		104		3,631
Total Securities Available-for-Sale	$	44,736	$	138	$	4,465	$	40,409
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	619	$	-	$	80	$	539
FHLMC Mortgage-Backed Certificates		29,312		-		6,572		22,740
FNMA Mortgage-Backed Certificates		40,010		-		8,493		31,517
Total Debt Securities		69,941		-		15,145		54,796
Municipals		1,305		-		104		1,201
Equity Securities (Non-Marketable)
13,098 Shares – Federal Home Loan Bank		1,310		-		-		1,310
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		1,560		-		-		1,560
Total Securities Held-to-Maturity	$	72,806	$	-	$	15,249	$	57,557

	June 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
	(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	12,167	$	1	$	1,012	$	11,156
FNMA Mortgage-Backed Certificates		15,318		-		1,604		13,714
GNMA Mortgage-Backed Certificates		4,578		-		814		3,764
Total Debt Securities		32,063		1		3,430		28,634
US Treasury Securities		9,779		68		6		9,841
Municipal Bonds		1,068		11		3		1,076
Total Securities Available-for-Sale	$	42,910	$	80	$	3,439	$	39,551
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	623	$	-	$	63	$	560
FHLMC Mortgage-Backed Certificates		29,921		-		5,781		24,140
FNMA Mortgage-Backed Certificates		41,024		-		7,277		33,747
Total Debt Securities		71,568		-		13,121		58,447
Municipals		1,311		-		80		1,231
Equity Securities (Non-Marketable)
12,935 Shares – Federal Home Loan Bank		1,294		-		-		1,294
630 Shares – First National Bankers Bankshares, Inc.		250		-		-		250
Total Equity Securities		1,544		-		-		1,544
Total Securities Held-to-Maturity	$	74,423	$	-	$	13,201	$	61,222

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities by contractual maturity at September 30, 2023 follows:

	Available-for-Sale				Held-to-Maturity
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
			(In Thousands)
Debt Securities
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		1		1		-		-
After Five through Ten Years		1,725		1,613		582		538
Over Ten Years		29,401		25,156		69,359		54,258
		31,127		26,770		69,941		54,796
US Treasury Securities
Within One Year or Less	$	7,877	$	8,008	$	-	$	-
One through Five Years		1,999		2,000		-		-
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		-		-
		9,876		10,008		-		-
Municipals
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		365		364		219		207
After Five through Ten Years		-		-		-		-
Over Ten Years		3,368		3,267		1,086		994
		3,733		3,631		1,305		1,201
Other Equity Securities		-		-		1,560		1,560
Total	$	44,736	$	40,409	$	72,806	$	57,557

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 and held-to-maturity at September 30, 2023 and June 30, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	September 30, 2023
	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		$	951		$	9,150		$	3,406		$	17,614
Municipals			104			2,293			-			-
US Treasury Securities			4			688			-			-
Total Securities Available-for-Sale		$	1,059		$	12,131		$	3,406		$	17,614

	September 30, 2023
	Less Than Twelve Months				Over Twelve Months
	Gross				Gross
	Unrealized		Fair		Unrealized		Fair
	Losses		Value		Losses		Value
	(In Thousands)
Securities Held-to-Maturity
Mortgage-Backed Securities	$	-	$	-	$	15,145	$	54,796
Municipals		-		-		104		1,201
Total Securities Held-to-Maturity	$	-	$	-	$	15,249	$	55,997

	June 30, 2023
	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		$	618		$	9,109		$	2,811		$	18,892
Municipals			3			561			-			-
US Treasury Securities			8			2,186			-			-
Total Securities Available-for-Sale		$	629		$	11,856		$	2,811		$	18,892

	June 30, 2023
	Less Than Twelve Months						Over Twelve Months
	Gross						Gross
	Unrealized			Fair			Unrealized			Fair
	Losses			Value			Losses			Value
	(In Thousands)
Securities Held-to-Maturity
Mortgage-Backed Securities		$	215		$	1,859		$	12,907		$	56,587
Municipals			-			-			80		$	1,231
Total Securities Held-to-Maturity		$	215		$	1,859		$	12,987		$	57,818

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Loans Receivable (Tables)

3 Months Ended

Sep. 30, 2023

Loans Receivable [Abstract]

Loans Receivable

Loans receivable are summarized as follows:

	September 30, 2023			June 30, 2023
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	186,002		$	179,579
Commercial		147,971			148,441
Multi-Family Residential		28,781			28,849
Land		30,473			26,841
Construction		33,984			28,035
Equity and Second Mortgage		2,488			2,450
Equity Lines of Credit		24,371			23,817
Total Mortgage Loans		454,070			438,012
Commercial Loans		56,328			55,364
Consumer Loans
Loans on Savings Accounts		367			372
Other Consumer Loans		1,082			1,082
Total Consumer Other Loans		1,449			1,454
Total Loans		511,847			494,830
Less:  Allowance for Credit Losses		(5,102	)		(5,173	)
Unamortized Loan Fees		(146	)		(164	)
Net Loans Receivable	$	506,599		$	489,493

Summary of Changes in Allowance for Credit Losses

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

	Three Months Ended			Three Months Ended
	September 30, 2023			June 30, 2023
	(In Thousands)
Balance - Beginning of Period	$	5,173		$	4,451
Impact of ASU 2016-13		359			-
Provision for Credit Losses		-			868
Loan Charge-Offs		(433	)		(237	)
Recoveries		3			91
Balance - End of Period	$	5,102		$	5,173

Designated Internal Risk Categories by Portfolio Segment and Loan Class

The following table summarizes designated internal risk categories by portfolio segment and loan class, by origination year, as of September 30, 2023:

	Term Loans Amortized Cost by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	71,365	$	39,132	$	37,026	$	20,890	$	2,421	$	12,478	$	41	$	183,353
Special mention		971		-		-		-		-		322		-		1,293
Substandard		297		136		-		768		-		155		-		1,356
Doubtful		-		-		-		-		-		-		-		-
Total one-to-four family residential	$	72,633	$	39,268	$	37,026	$	21,658	$	2,421	$	12,955	$	41	$	186,002
Current period gross charge-offs	$	-	$	428	$	-	$	-	$	-	$	-	$	-	$	428
Commercial
Risk rating
Pass	$	23,431	$	43,795	$	44,350	$	20,007	$	1,900	$	1,013	$	11,560	$	146,056
Special mention		331		-		-		-		-		-		-		331
Substandard		975		-		-		609		-		-		-		1,584
Doubtful		-		-		-		-		-		-		-		-
Total commercial	$	24,737	$	43,795	$	44,350	$	20,616	$	1,900	$	1,013	$	11,560	$	147,971
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost by Origination Year
As of September 30, 2023	2023		2022		2021		2020		2019		Prior		Revolving Lines		Total
	(In Thousands)
Multi-family residential
Risk rating
Pass	$	2,118	$	4,051	$	2,291	$	7,168	$	6,006	$	5,873	$	1,274	$	28,781
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	2,118	$	4,051	$	2,291	$	7,168	$	6,006	$	5,873	$	1,274	$	28,781
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	9,086	$	6,581	$	4,972	$	1,257	$	96	$	341	$	7,782	$	30,115
Special mention		50		308		-		-		-		-		-		358
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total land	$	9,136	$	6,889	$	4,972	$	1,257	$	96	$	341	$	7,782	$	30,473
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Construction
Risk rating
Pass	$	7,251	$	3,753	$	-	$	-	$	-	$	-	$	22,980	$	33,984
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	7,251	$	3,753	$	-	$	-	$	-	$	-	$	22,980	$	33,984
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	6,733	$	2,106	$	4,354	$	583	$	26	$	1,793	$	11,201	$	26,796
Special mention		-		-		-		-		-		-		-		-
Substandard		63		-		-		-		-		-		-		63
Doubtful		-		-		-		-		-		-		-		-
Total home equity and lines of credit	$	6,796	$	2,106	$	4,354	$	583	$	26	$	1,793	$	11,201	$	26,859
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk rating
Pass	$	15,582	$	9,888	$	7,758	$	6,193	$	2,012	$	11	$	12,091	$	53,535
Special mention		1,198		-		402		19		-		-		990		2,609
Substandard		137		5		42		-		-		-		-		184
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	16,917	$	9,893	$	8,202	$	6,212	$	2,012	$	11	$	13,081	$	56,328
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Consumer loans
Risk rating
Pass	$	1,040	$	53	$	-	$	270	$	46	$	-	$	19	$	1,428
Special mention		-		-		-		-		-		-		-		-
Substandard		21		-		-		-		-		-		-		21
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	1,061	$	53	$	-	$	270	$	46	$	-	$	19	$	1,449
Current period gross charge-offs	$	5	$	-	$	-	$	-	$	-	$	-	$	-	$	5
Total
Pass	$	136,606	$	109,359	$	100,751	$	56,368	$	12,507	$	21,509	$	66,948	$	504,048
Special mention		2,550		308		402		19		-		322		990		4,591
Substandard		1,493		141		42		1,377		-		155		-		3,208
Doubtful		-		-		-		-		-		-		-		-
Total	$	140,649	$	109,808	$	101,195	$	57,764	$	12,507	$	21,986	$	67,938	$	511,847
Current period gross charge-offs	$	5	$	428	$	-	$	-	$	-	$	-	$	-	$	433

Grading of Loans, Segregated by Class of Loans

The information presented in the table above is not required for periods prior to the adoption of ASU 2016-13. The following table presents the most comparable required information for the prior period, internal credit risk ratings for the indicated loan class segments as of June 30, 2023:

June 30, 2023	Pass and Pass Watch		Special Mention		Substandard		Doubtful		Total
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	176,536	$	810	$	2,233	$	-	$	179,579
Commercial		146,787		-		1,654		-		148,441
Multi-Family Residential		28,849		-		-		-		28,849
Land		26,841		-		-		-		26,841
Construction		28,035		-		-		-		28,035
Equity and Second Mortgage		2,381		-		69		-		2,450
Equity Lines of Credit		23,817		-		-		-		23,817
Commercial Loans		53,025		2,339		-		-		55,364
Consumer Loans		1,432		1		21		-		1,454
Total	$	487,703	$	3,150	$	3,977	$	-	$	494,830

Aging Analysis of Past Due Loans Segregated by Class of Loans

The following tables present an aging analysis of past due loans, segregated by class of loans, as of September 30, 2023 and June 30, 2023:

September 30, 2023	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	$	216	$	257	$	914	$	1,387	$	184,615	$	186,002	$	-
Commercial		-		-		-		-		147,971		147,971		-
Multi-Family Residential		-		-		-		-		28,781		28,781		-
Land		308		-		-		308		30,165		30,473		-
Construction		-		-		-		-		33,984		33,984		-
Equity and Second Mortgage		-		-		-		-		2,488		2,488		16
Equity Lines of Credit		116		110		16		242		24,129		24,371		-
Commercial Loans		108		43		47		198		56,130		56,328		47
Consumer Loans		1		4		5		10		1,439		1,449		5
Total	$	749	$	414	$	982	$	2,145	$	509,702	$	511,847	$	68

June 30, 2023	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	$	177	$	750	$	1,174	$	2,101	$	177,478	$	179,579	$	-
Commercial		-		-		-		-		148,441		148,441		-
Multi-Family Residential		-		-		-		-		28,849		28,849		-
Land		36		-		-		36		26,805		26,841		-
Construction		-		-		-		-		28,035		28,035		-
Equity and Second Mortgage		54		-		-		54		2,396		2,450		-
Equity Lines of Credit		-		-		-		-		23,817		23,817		-
Commercial Loans		63		-		-		63		55,301		55,364		-
Consumer Loans		-		-		-		-		1,454		1,454		-
Total	$	330	$	750	$	1,174	$	2,254	$	492,576	$	494,830	$	-

Allowance for Credit Losses and Recorded Investment in Loans

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the three months ended September 30, 2023 and year ended June 30, 2023 was as follows:

	Real Estate Loans
September 30, 2023	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 credit losses:
Beginning Balances	$	1,900		$	1,673		$	228		$	274		$	254		$	251	$	588	$	5		$	5,173
Impact of ASU 2016-13		688			(119	)		(139	)		(85	)		(44	)		30		24		4			359
Charge-Offs		(428	)		-			-			-			-			-		-		(5	)		(433	)
Recoveries		1			-			-			-			-			2		-		-			3
Current Provision(1)		-			-			-			-			-			-		-		-			-
Ending Balances	$	2,161		$	1,554		$	89		$	189		$	210		$	283	$	612	$	4		$	5,102

(1) Current provision included in the table only includes the portion related to loans receivable.

	Real Estate Loans
June 30, 2023	Residential			Commercial		Multi- Family			Land			Construction			Home Equity Loans and Lines of Credit			Commercial Loans			Consumer Loans		Total
									(In Thousands)
Allowance for credit losses:
Beginning Balances	$	1,367		$	1,295	$	357		$	305		$	282		$	197		$	646		$	2	$	4,451
Charge-Offs		(41	)		-		-			-			-			(26	)		(170	)		-		(237	)
Recoveries		4			-		-			-			-			5			82			-		91
Current Provision		570			378		(129	)		(31	)		(28	)		75			30			3		868
Ending Balances	$	1,900		$	1,673	$	228		$	274		$	254		$	251		$	588		$	5	$	5,173
Evaluated for Impairment:
Individually		495			100		-			-			-			4			29			-		628
Collectively		1,405			1,573		228			274			254			247			559			5		4,545
Loans Receivable:
Ending Balances – Total	$	179,579		$	148,441	$	28,849		$	26,841		$	28,035		$	26,267		$	55,364		$	1,454	$	494,830
Ending Balances:
Evaluated for Impairment:
Individually		3,043			1,654		-			-			-			69			2,339			22		7,127
Collectively	$	176,536		$	146,787	$	28,849		$	26,841		$	28,035		$	26,198		$	53,025		$	1,432	$	487,703

Loans Individually Evaluated for Impairment Segregated by Class of Loans

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of September 30, 2023 and June 30, 2023:

September 30, 2023	Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	3,536	$	127
Commercial		-		-
Multi-Family Residential		-		-
Land		171		6
Construction		69		2
Equity and Second Mortgage		-		-
Equity Lines of Credit		-		-
Commercial Loans		7,840		8
Consumer Loans		346		5
Total	$	11,962	$	148

The balances of loans individually evaluated for impairment were similar at July 1, 2023 and September 30, 2023.

June 30, 2023	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	$	2,559	$	156	$	2,403	$	2,559	$	495	$	3,644
Commercial		1,617		-		1,617		1,617		100		1,675
Multi-Family Residential		-		-		-		-		-		-
Land		-		-		-		-		-		-
Construction		-		-		-		-		-		-
Equity and Second Mortgage		-		-		-		-		-		63
Equity Lines of Credit		-		-		-		-		-		-
Commercial Loans		2,197		37		2,160		2,197		29		2,659
Consumer Loans		-		-		-		-		-		23
Purchased Credit Impaired		754		685		69		754		4		754
Total	$	7,127	$	878	$	6,249	$	7,127	$	628	$	8,818

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Deposits (Tables)

3 Months Ended

Sep. 30, 2023

Deposits [Abstract]

Deposits

Deposits at September 30, 2023 and June 30, 2023 consist of the following classifications:

	September 30, 2023		June 30, 2023
	(In Thousands)
Non-Interest Bearing	$	146,057	$	145,553
NOW Accounts		63,613		65,335
Money Markets		104,580		114,195
Passbook Savings		75,747		81,895
		389,997		406,978
Certificates of Deposit		202,508		190,383
Total Deposits	$	592,505	$	597,361

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Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2023

Earnings Per Share [Abstract]

Calculation of Earnings per Share

Earnings per share for the three months ended September 30, 2023 and 2022 were calculated as follows:

	Three Months Ended September 30,
	2023		2022
	(In Thousands, Except Per Share Data)
Net income	$	1,220	$	1,671
Weighted average shares outstanding – basic		3,029		3,066
Effect of dilutive common stock equivalents		79		162
Adjusted weighted average shares outstanding – diluted		3,108		3,228
Basic earnings per share	$	0.40	$	0.55
Diluted earnings per share	$	0.39	$	0.52

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 September 30,
	2023			2022
	(In Thousands)
Average common shares issued		6,125			6,125
Average unearned ESOP shares		(102	)		(125	)
Average Company stock purchased		(2,994	)		(2,934	)
Weighted average shares outstanding		3,029			3,066

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Fair Value Disclosures (Tables)

3 Months Ended

Sep. 30, 2023

Fair Value Disclosures [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

At September 30, 2023 and June 30, 2023, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	September 30, 2023				June 30, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,878	$	8,878	$	24,765	$	24,765
Securities Available-for-Sale		40,409		40,409		39,551		39,551
Securities to be Held-to-Maturity		72,806		57,557		74,423		61,222
Loans Held-for-Sale		589		589		4		4
Loans Receivable		506,599		465,463		489,493		444,117
Financial Liabilities
Deposits	$	592,505	$	500,015	$	597,361	$	481,055
Advances from FHLB		4,600		4,600		-		-
Other Borrowings		8,850		8,850		8,550		8,550
Off-Balance Sheet Items
Mortgage Loan Commitments	$	13,127	$	13,127	$	13,277	$	13,277

Fair Values of Assets and Liabilities Measured on a Recurring Basis

Fair values of assets and liabilities measured on a recurring basis at September 30, 2023 and June 30, 2023 are as follows:

	Fair Value Measurements
September 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	10,493	$	-	$	10,493
FNMA		-		12,822		-		12,822
GNMA		-		3,455		-		3,455
US Treasury Notes		-		10,008		-		10,008
Municipal Bonds		-		3,631		-		3,631
Total	$	-	$	40,409	$	-	$	40,409

	Fair Value Measurements
June 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	11,156	$	-	$	11,156
FNMA		-		13,714		-		13,714
GNMA		-		3,764		-		3,764
US Treasury Notes		-		9,841		-		9,841
Municipal Bonds		-		1,076		-		1,076
Total	$	-	$	39,551	$	-	$	39,551

Assets and Liabilities Measured at Fair Value on a Non-Recurring Basis

Fair values of assets and liabilities measured on a non-recurring basis at September 30, 2023 and June 30, 2023 are as follows:

	Fair Value Measurements
September 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	11,814	$	11,814
Other Real Estate Owned,
Net of Allowance	$	-	$	-	$	562	$	562
Total	$	-	$	-	$	12,376	$	12,376

	Fair Value Measurements
June 30, 2023	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	701	$	701
Other Real Estate Owned,
Net of Allowance	$	-	$	-	$	330	$	330
Total	$	-	$	-	$	1,031	$	1,031

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Leases (Tables)

3 Months Ended

Sep. 30, 2023

Leases [Abstract]

Carrying Amounts of ROU Assets and Corresponding Lease Liabilities

At September 30, 2023 and June 30, 2023, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows.

(In Thousands)		September 30, 2023		June 30, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	829	$	829
Total Lease Right-of-Use Assets		$	829	$	829
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	866	$	866
Total Lease Liabilities		$	866	$	866

Weighted-Average Remaining Lease Term and Discount rate

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.

	September 30, 2023			June 30, 2023
Weighted-average remaining lease term
Operating leases	35.1 years			35.4 years
Weighted-average discount rate
Operating leases		3.00	%		3.00	%

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Summary of Accounting Policies (Details) $ / shares in Units, $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2023 USD ($) Office Category Subsidiary $ / shares		Sep. 30, 2022 USD ($) $ / shares	Jun. 30, 2023 USD ($)
Securities [Abstract]
Trading securities	$ 0			$ 0
Allowance for Credit Losses [Abstract]
Number of distinct categories of loans | Category	2
Earnings per Share [Abstract]
Basic earnings per share (in dollars per share) | $ / shares	$ 0.4		$ 0.55
Diluted earnings per share (in dollars per share) | $ / shares	$ 0.39		$ 0.52
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	$ 5,173		$ 4,451	4,451
Provision for Credit Losses	0	[1]	418	868
Charge-Offs	(433)			(237)
Recoveries	3			91
Ending Balances	5,102			5,173
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	1,900		1,367	1,367
Provision for Credit Losses	0	[1]		570
Charge-Offs	(428)			(41)
Recoveries	1			4
Ending Balances	2,161			1,900
Real Estate Loans [Member] | Commercial [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	1,673		1,295	1,295
Provision for Credit Losses	0	[1]		378
Charge-Offs	0			0
Recoveries	0			0
Ending Balances	1,554			1,673
Real Estate Loans [Member] | Multi Family [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	228		357	357
Provision for Credit Losses	0	[1]		(129)
Charge-Offs	0			0
Recoveries	0			0
Ending Balances	89			228
Real Estate Loans [Member] | Land [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	274		305	305
Provision for Credit Losses	0	[1]		(31)
Charge-Offs	0			0
Recoveries	0			0
Ending Balances	189			274
Real Estate Loans [Member] | Construction [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	254		282	282
Provision for Credit Losses	0	[1]		(28)
Charge-Offs	0			0
Recoveries	0			0
Ending Balances	210			254
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	251		197	197
Provision for Credit Losses	0	[1]		75
Charge-Offs	0			(26)
Recoveries	2			5
Ending Balances	283			251
Commercial Loans [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	588		646	646
Provision for Credit Losses	0	[1]		30
Charge-Offs	0			(170)
Recoveries	0			82
Ending Balances	612			588
Consumer Loans [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	5		2	2
Provision for Credit Losses	0	[1]		3
Charge-Offs	(5)			0
Recoveries	0			0
Ending Balances	$ 4			5
Concentrations of Credit Risk [Member]
Significant Group Concentrations of Credit Risk [Abstract]
Number of wholly-owned subsidiaries | Subsidiary	1
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, Bossier and Webster Parishes, Louisiana [Member] | Concentrations of Credit Risk [Member]
Significant Group Concentrations of Credit Risk [Abstract]
Number of full-service banking offices | Office	10
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	$ 359		$ 0	0
Ending Balances				359
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Real Estate Loans [Member] | 1-4 Family Residential [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	688
Ending Balances				688
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Real Estate Loans [Member] | Commercial [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	(119)
Ending Balances				(119)
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Real Estate Loans [Member] | Multi Family [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	(139)
Ending Balances				(139)
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Real Estate Loans [Member] | Land [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	(85)
Ending Balances				(85)
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Real Estate Loans [Member] | Construction [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	(44)
Ending Balances				(44)
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	30
Ending Balances				30
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Commercial Loans [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	24
Ending Balances				24
ASU 2016-13 [Member] | Impact of ASU 2016-13 Adoption [Member] | Consumer Loans [Member]
Summary of Changes in Allowance for Loan Losses [Roll Forward]
Beginning Balances	$ 4
Ending Balances				$ 4

[1] Current provision included in the table only includes the portion related to loans receivable.

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Securities, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 44,736	$ 42,910
Gross Unrealized Gains	138	80
Gross Unrealized Losses	4,465	3,439
Fair Value	40,409	39,551
Debt Securities [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	31,127	32,063
Gross Unrealized Gains	0	1
Gross Unrealized Losses	4,357	3,430
Fair Value	26,770	28,634
FHLMC Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	11,869	12,167
Gross Unrealized Gains	0	1
Gross Unrealized Losses	1,376	1,012
Fair Value	10,493	11,156
FNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	14,844	15,318
Gross Unrealized Gains	0	0
Gross Unrealized Losses	2,022	1,604
Fair Value	12,822	13,714
GNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	4,414	4,578
Gross Unrealized Gains	0	0
Gross Unrealized Losses	959	814
Fair Value	3,455	3,764
US Treasury Securities [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	9,876	9,779
Gross Unrealized Gains	136	68
Gross Unrealized Losses	4	6
Fair Value	10,008	9,841
Municipals [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	3,733	1,068
Gross Unrealized Gains	2	11
Gross Unrealized Losses	104	3
Fair Value	$ 3,631	$ 1,076

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Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 72,806	$ 74,423
Gross Unrealized Gains	0	0
Gross Unrealized Losses	15,249	13,201
Fair Value	57,557	61,222
Debt Securities [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	69,941	71,568
Gross Unrealized Gains	0	0
Gross Unrealized Losses	15,145	13,121
Fair Value	54,796	58,447
GNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	619	623
Gross Unrealized Gains	0	0
Gross Unrealized Losses	80	63
Fair Value	539	560
FHLMC Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	29,312	29,921
Gross Unrealized Gains	0	0
Gross Unrealized Losses	6,572	5,781
Fair Value	22,740	24,140
FNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	40,010	41,024
Gross Unrealized Gains	0	0
Gross Unrealized Losses	8,493	7,277
Fair Value	31,517	33,747
Municipals [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,305	1,311
Gross Unrealized Gains	0	0
Gross Unrealized Losses	104	80
Fair Value	1,201	1,231
Equity Securities (Non-Marketable) [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,560	1,544
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	1,560	1,544
Federal Home Loan Bank [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,310	1,294
Gross Unrealized Gains	0	0
Gross Unrealized Losses	0	0
Fair Value	$ 1,310	$ 1,294
Number of equity securities (in shares)	13,098	12,935
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	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
Available-for-Sale, Amortized Cost [Abstract]
Amortized Cost	$ 44,736	$ 42,910
Available-for-Sale, Fair Value [Abstract]
Fair Value	40,409	39,551
Held-to-Maturity, Amortized Cost [Abstract]
Amortized Cost	72,806	74,423
Held-to-Maturity, Fair Value [Abstract]
Fair Value	57,557	61,222
Cost of available-for-sale securities purchased	2,700
Securities sold	0
Debt Securities [Member]
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	1
After Five through Ten Years	1,725
Over Ten Years	29,401
With Single Maturity Date	31,127
Amortized Cost	31,127	32,063
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	1
After Five through Ten Years	1,613
Over Ten Years	25,156
With Single Maturity Date	26,770
Fair Value	26,770	28,634
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	582
Over Ten Years	69,359
With Single Maturity Date	69,941
Amortized Cost	69,941	71,568
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	538
Over Ten Years	54,258
With Single Maturity Date	54,796
Fair Value	54,796	58,447
US Treasury Securities [Member]
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	7,877
One through Five Years	1,999
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	9,876
Amortized Cost	9,876	9,779
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	8,008
One through Five Years	2,000
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	10,008
Fair Value	10,008	9,841
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	0
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	0
Municipals [Member]
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	365
After Five through Ten Years	0
Over Ten Years	3,368
With Single Maturity Date	3,733
Amortized Cost	3,733	1,068
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	364
After Five through Ten Years	0
Over Ten Years	3,267
With Single Maturity Date	3,631
Fair Value	3,631	1,076
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	219
After Five through Ten Years	0
Over Ten Years	1,086
With Single Maturity Date	1,305
Amortized Cost	1,305	1,311
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	207
After Five through Ten Years	0
Over Ten Years	994
With Single Maturity Date	1,201
Fair Value	1,201	1,231
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	1,560
Amortized Cost	1,560	1,544
Held-to-Maturity, Fair Value [Abstract]
Without Single Maturity Date	1,560
Fair Value	$ 1,560	$ 1,544

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Securities, Securities with Gross Unrealized Losses (Details) $ in Thousands	Sep. 30, 2023 USD ($) Security	Jun. 30, 2023 USD ($)
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	$ 1,059	$ 629
Over Twelve Months	3,406	2,811
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	12,131	11,856
Over Twelve Months	17,614	18,892
Debt Securities, Held-to-maturity, Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	215
Over Twelve Months	15,249	12,987
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months	0	1,859
Over Twelve Months	$ 55,997	57,818
Number of debt securities in an unrealized loss position | Security	65
Asset Pledged as Collateral [Member] | Public Deposits [Member]
Securities Pledged [Abstract]
Securities	$ 10,600
Asset Pledged as Collateral [Member] | FHLB Advances [Member]
Securities Pledged [Abstract]
Securities and mortgage loans	198,100
Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	951	618
Over Twelve Months	3,406	2,811
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	9,150	9,109
Over Twelve Months	17,614	18,892
Debt Securities, Held-to-maturity, Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	215
Over Twelve Months	15,145	12,907
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months	0	1,859
Over Twelve Months	54,796	56,587
Municipals [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	104	3
Over Twelve Months	0	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	2,293	561
Over Twelve Months	0	0
Debt Securities, Held-to-maturity, Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	0
Over Twelve Months	104	80
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months	0	0
Over Twelve Months	1,201	1,231
US Treasury Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	4	8
Over Twelve Months	0	0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less than Twelve Months	688	2,186
Over Twelve Months	$ 0	$ 0

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Loans Receivable, Components of Loans Receivable (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023	Jun. 30, 2022
Loans receivable [Abstract]
Total Loans	$ 511,847	$ 494,830
Less: Allowance for Credit Losses	(5,102)	(5,173)	$ (4,451)
Unamortized Loan Fees	(146)	(164)
Net Loans Receivable	506,599	489,493
Loans Secured by Mortgages on Real Estate [Member]
Loans receivable [Abstract]
Total Loans	454,070	438,012
Loans Secured by Mortgages on Real Estate [Member] | One-to-Four-Family Residential [Member]
Loans receivable [Abstract]
Total Loans	186,002	179,579
Less: Allowance for Credit Losses	(2,161)	(1,900)	(1,367)
Loans Secured by Mortgages on Real Estate [Member] | Commercial [Member]
Loans receivable [Abstract]
Total Loans	147,971	148,441
Less: Allowance for Credit Losses	(1,554)	(1,673)	(1,295)
Loans Secured by Mortgages on Real Estate [Member] | Multi-Family Residential [Member]
Loans receivable [Abstract]
Total Loans	28,781	28,849
Less: Allowance for Credit Losses	(89)	(228)	(357)
Loans Secured by Mortgages on Real Estate [Member] | Land [Member]
Loans receivable [Abstract]
Total Loans	30,473	26,841
Less: Allowance for Credit Losses	(189)	(274)	(305)
Loans Secured by Mortgages on Real Estate [Member] | Construction [Member]
Loans receivable [Abstract]
Total Loans	33,984	28,035
Less: Allowance for Credit Losses	(210)	(254)	(282)
Loans Secured by Mortgages on Real Estate [Member] | Equity and Second Mortgage [Member]
Loans receivable [Abstract]
Total Loans	2,488	2,450
Loans Secured by Mortgages on Real Estate [Member] | Equity Lines of Credit [Member]
Loans receivable [Abstract]
Total Loans	24,371	23,817
Commercial Loans [Member]
Loans receivable [Abstract]
Total Loans	56,328	55,364
Less: Allowance for Credit Losses	(612)	(588)	(646)
Consumer Loans [Member]
Loans receivable [Abstract]
Total Loans	1,449	1,454
Less: Allowance for Credit Losses	(4)	(5)	$ (2)
Consumer Loans [Member] | Loans on Savings Accounts [Member]
Loans receivable [Abstract]
Total Loans	367	372
Consumer Loans [Member] | Other Consumer Loans [Member]
Loans receivable [Abstract]
Total Loans	$ 1,082	$ 1,082

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Loans Receivable, Summary of Changes in Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2023		Sep. 30, 2022	Jun. 30, 2023
Summary of changes in the allowance for credit losses [Roll Forward]
Beginning Balances	$ 5,173		$ 4,451	$ 4,451
Provision for Credit Losses	0	[1]	418	868
Loan Charge-Offs	(433)			(237)
Recoveries	3			91
Ending Balances	5,102			5,173
Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Summary of changes in the allowance for credit losses [Roll Forward]
Beginning Balances	$ 359		$ 0	0
Ending Balances				$ 359

[1] Current provision included in the table only includes the portion related to loans receivable.

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Loans Receivable, Summarizes Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	$ 140,649
2022	109,808
2021	101,195
2020	57,764
2019	12,507
Prior	21,986
Revolving Lines	67,938
Total	511,847	$ 494,830
Current Period Gross Charge-Offs [Abstract]
2023	5
2022	428
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	433	237
Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	136,606
2022	109,359
2021	100,751
2020	56,368
2019	12,507
Prior	21,509
Revolving Lines	66,948
Total	504,048	487,703
Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	2,550
2022	308
2021	402
2020	19
2019	0
Prior	322
Revolving Lines	990
Total	4,591	3,150
Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	1,493
2022	141
2021	42
2020	1,377
2019	0
Prior	155
Revolving Lines	0
Total	3,208	3,977
Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
Total	454,070	438,012
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	72,633
2022	39,268
2021	37,026
2020	21,658
2019	2,421
Prior	12,955
Revolving Lines	41
Total	186,002	179,579
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	428
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	428	41
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	71,365
2022	39,132
2021	37,026
2020	20,890
2019	2,421
Prior	12,478
Revolving Lines	41
Total	183,353	176,536
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	971
2022	0
2021	0
2020	0
2019	0
Prior	322
Revolving Lines	0
Total	1,293	810
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	297
2022	136
2021	0
2020	768
2019	0
Prior	155
Revolving Lines	0
Total	1,356	2,233
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Commercial [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	24,737
2022	43,795
2021	44,350
2020	20,616
2019	1,900
Prior	1,013
Revolving Lines	11,560
Total	147,971	148,441
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Commercial [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	23,431
2022	43,795
2021	44,350
2020	20,007
2019	1,900
Prior	1,013
Revolving Lines	11,560
Total	146,056	146,787
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	331
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	331	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	975
2022	0
2021	0
2020	609
2019	0
Prior	0
Revolving Lines	0
Total	1,584	1,654
Real Estate Loans [Member] | Commercial [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	2,118
2022	4,051
2021	2,291
2020	7,168
2019	6,006
Prior	5,873
Revolving Lines	1,274
Total	28,781	28,849
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	2,118
2022	4,051
2021	2,291
2020	7,168
2019	6,006
Prior	5,873
Revolving Lines	1,274
Total	28,781	28,849
Real Estate Loans [Member] | Multi-Family Residential [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Land [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	9,136
2022	6,889
2021	4,972
2020	1,257
2019	96
Prior	341
Revolving Lines	7,782
Total	30,473	26,841
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Land [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	9,086
2022	6,581
2021	4,972
2020	1,257
2019	96
Prior	341
Revolving Lines	7,782
Total	30,115	26,841
Real Estate Loans [Member] | Land [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	50
2022	308
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	358	0
Real Estate Loans [Member] | Land [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Land [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Construction [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	7,251
2022	3,753
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	22,980
Total	33,984	28,035
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Construction [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	7,251
2022	3,753
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	22,980
Total	33,984	28,035
Real Estate Loans [Member] | Construction [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Construction [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Construction [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Real Estate Loans [Member] | Equity Loans and Lines of Credit [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	6,796
2022	2,106
2021	4,354
2020	583
2019	26
Prior	1,793
Revolving Lines	11,201
Total	26,859	26,267
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	26
Real Estate Loans [Member] | Equity Loans and Lines of Credit [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	6,733
2022	2,106
2021	4,354
2020	583
2019	26
Prior	1,793
Revolving Lines	11,201
Total	26,796
Real Estate Loans [Member] | Equity Loans and Lines of Credit [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0
Real Estate Loans [Member] | Equity Loans and Lines of Credit [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	63
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	63
Real Estate Loans [Member] | Equity Loans and Lines of Credit [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0
Commercial Loans [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	16,917
2022	9,893
2021	8,202
2020	6,212
2019	2,012
Prior	11
Revolving Lines	13,081
Total	56,328	55,364
Current Period Gross Charge-Offs [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	170
Commercial Loans [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	15,582
2022	9,888
2021	7,758
2020	6,193
2019	2,012
Prior	11
Revolving Lines	12,091
Total	53,535	53,025
Commercial Loans [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	1,198
2022	0
2021	402
2020	19
2019	0
Prior	0
Revolving Lines	990
Total	2,609	2,339
Commercial Loans [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	137
2022	5
2021	42
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	184	0
Commercial Loans [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	0
Consumer Loans [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	1,061
2022	53
2021	0
2020	270
2019	46
Prior	0
Revolving Lines	19
Total	1,449	1,454
Current Period Gross Charge-Offs [Abstract]
2023	5
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	5	0
Consumer Loans [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	1,040
2022	53
2021	0
2020	270
2019	46
Prior	0
Revolving Lines	19
Total	1,428	1,432
Consumer Loans [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	0	1
Consumer Loans [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	21
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	21	21
Consumer Loans [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2023	0
2022	0
2021	0
2020	0
2019	0
Prior	0
Revolving Lines	0
Total	$ 0	$ 0

XML

Loans Receivable, Grading of Loans, Segregated by Class of Loans (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	$ 511,847	$ 494,830
Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	504,048	487,703
Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	4,591	3,150
Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	3,208	3,977
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	454,070	438,012
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	186,002	179,579
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	183,353	176,536
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	1,293	810
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,356	2,233
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	147,971	148,441
Real Estate Loans [Member] | Commercial [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	146,056	146,787
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	331	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,584	1,654
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	28,781	28,849
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	28,781	28,849
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	30,473	26,841
Real Estate Loans [Member] | Land [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	30,115	26,841
Real Estate Loans [Member] | Land [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	358	0
Real Estate Loans [Member] | Land [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	0
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	33,984	28,035
Real Estate Loans [Member] | Construction [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	33,984	28,035
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	2,488	2,450
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		2,381
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
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable		69
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Doubtful [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable		0
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	24,371	23,817
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		23,817
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
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable		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
Commercial Loans [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	56,328	55,364
Commercial Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	53,535	53,025
Commercial Loans [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	2,609	2,339
Commercial Loans [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	184	0
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	1,449	1,454
Consumer Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,428	1,432
Consumer Loans [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	1
Consumer Loans [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	21	21
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	3 Months Ended	12 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	$ 511,847	$ 494,830
Recorded Investment > 90 Days and Accruing	68	0
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	102	182
Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	2,145	2,254
30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	749	330
60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	414	750
90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	982	1,174
Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	509,702	492,576
Real Estate Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	454,070	438,012
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	186,002	179,579
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	1,387	2,101
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 Loans	216	177
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 Loans	257	750
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 Loans	914	1,174
Real Estate Loans [Member] | One-to-Four-Family Residential [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	184,615	177,478
Real Estate Loans [Member] | Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	147,971	148,441
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Commercial [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	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 Loans	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 Loans	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 Loans	0	0
Real Estate Loans [Member] | Commercial [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	147,971	148,441
Real Estate Loans [Member] | Multi-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	28,781	28,849
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	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 Loans	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 Loans	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 Loans	0	0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	28,781	28,849
Real Estate Loans [Member] | Land [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	30,473	26,841
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Land [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	308	36
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 Loans	308	36
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 Loans	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 Loans	0	0
Real Estate Loans [Member] | Land [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	30,165	26,805
Real Estate Loans [Member] | Construction [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	33,984	28,035
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Construction [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	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 Loans	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 Loans	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 Loans	0	0
Real Estate Loans [Member] | Construction [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	33,984	28,035
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	2,488	2,450
Recorded Investment > 90 Days and Accruing	16	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	0	54
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 Loans	0	54
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 Loans	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 Loans	0	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	2,488	2,396
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	24,371	23,817
Recorded Investment > 90 Days and Accruing	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	242	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 Loans	116	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 Loans	110	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 Loans	16	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	24,129	23,817
Commercial Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	56,328	55,364
Recorded Investment > 90 Days and Accruing	47	0
Commercial Loans [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	198	63
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	108	63
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	43	0
Commercial Loans [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	47	0
Commercial Loans [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	56,130	55,301
Consumer Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	1,449	1,454
Recorded Investment > 90 Days and Accruing	5	0
Consumer Loans [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	10	0
Consumer Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	1	0
Consumer Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	4	0
Consumer Loans [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	5	0
Consumer Loans [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	$ 1,439	$ 1,454

XML

Loans Receivable, Allowance for Credit Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended			12 Months Ended
	Sep. 30, 2023		Sep. 30, 2022	Jun. 30, 2023
Allowance for credit losses [Roll Forward]
Beginning Balances	$ 5,173		$ 4,451	$ 4,451
Charge-Offs	(433)			(237)
Recoveries	3			91
Current Provision	0	[1]	418	868
Ending Balances	5,102			5,173
Evaluated for Impairment [Abstract]
Individually	148			628
Collectively				4,545
Loans Receivable [Abstract]
Ending Balances - Total	511,847			494,830
Ending Balances, Evaluated for Impairment [Abstract]
Individually	11,962			7,127
Collectively				487,703
Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	359		0	0
Ending Balances				359
Real Estate Loans [Member]
Loans Receivable [Abstract]
Ending Balances - Total	454,070			438,012
Real Estate Loans [Member] | 1-4 Family Residential [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	1,900		1,367	1,367
Charge-Offs	(428)			(41)
Recoveries	1			4
Current Provision	0	[1]		570
Ending Balances	2,161			1,900
Evaluated for Impairment [Abstract]
Individually	127			495
Collectively				1,405
Loans Receivable [Abstract]
Ending Balances - Total	186,002			179,579
Ending Balances, Evaluated for Impairment [Abstract]
Individually	3,536			3,043
Collectively				176,536
Real Estate Loans [Member] | 1-4 Family Residential [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	688
Ending Balances				688
Real Estate Loans [Member] | Commercial [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	1,673		1,295	1,295
Charge-Offs	0			0
Recoveries	0			0
Current Provision	0	[1]		378
Ending Balances	1,554			1,673
Evaluated for Impairment [Abstract]
Individually	0			100
Collectively				1,573
Loans Receivable [Abstract]
Ending Balances - Total	147,971			148,441
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0			1,654
Collectively				146,787
Real Estate Loans [Member] | Commercial [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	(119)
Ending Balances				(119)
Real Estate Loans [Member] | Multi Family [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	228		357	357
Charge-Offs	0			0
Recoveries	0			0
Current Provision	0	[1]		(129)
Ending Balances	89			228
Evaluated for Impairment [Abstract]
Individually	0			0
Collectively				228
Loans Receivable [Abstract]
Ending Balances - Total	28,781			28,849
Ending Balances, Evaluated for Impairment [Abstract]
Individually	0			0
Collectively				28,849
Real Estate Loans [Member] | Multi Family [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	(139)
Ending Balances				(139)
Real Estate Loans [Member] | Land [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	274		305	305
Charge-Offs	0			0
Recoveries	0			0
Current Provision	0	[1]		(31)
Ending Balances	189			274
Evaluated for Impairment [Abstract]
Individually	6			0
Collectively				274
Loans Receivable [Abstract]
Ending Balances - Total	30,473			26,841
Ending Balances, Evaluated for Impairment [Abstract]
Individually	171			0
Collectively				26,841
Real Estate Loans [Member] | Land [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	(85)
Ending Balances				(85)
Real Estate Loans [Member] | Construction [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	254		282	282
Charge-Offs	0			0
Recoveries	0			0
Current Provision	0	[1]		(28)
Ending Balances	210			254
Evaluated for Impairment [Abstract]
Individually	2			0
Collectively				254
Loans Receivable [Abstract]
Ending Balances - Total	33,984			28,035
Ending Balances, Evaluated for Impairment [Abstract]
Individually	69			0
Collectively				28,035
Real Estate Loans [Member] | Construction [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	(44)
Ending Balances				(44)
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	251		197	197
Charge-Offs	0			(26)
Recoveries	2			5
Current Provision	0	[1]		75
Ending Balances	283			251
Evaluated for Impairment [Abstract]
Individually				4
Collectively				247
Loans Receivable [Abstract]
Ending Balances - Total	26,859			26,267
Ending Balances, Evaluated for Impairment [Abstract]
Individually				69
Collectively				26,198
Real Estate Loans [Member] | Home Equity Loans and Lines of Credit [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	30
Ending Balances				30
Commercial Loans [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	588		646	646
Charge-Offs	0			(170)
Recoveries	0			82
Current Provision	0	[1]		30
Ending Balances	612			588
Evaluated for Impairment [Abstract]
Individually	8			29
Collectively				559
Loans Receivable [Abstract]
Ending Balances - Total	56,328			55,364
Ending Balances, Evaluated for Impairment [Abstract]
Individually	7,840			2,339
Collectively				53,025
Commercial Loans [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	24
Ending Balances				24
Consumer Loans [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	5		$ 2	2
Charge-Offs	(5)			0
Recoveries	0			0
Current Provision	0	[1]		3
Ending Balances	4			5
Evaluated for Impairment [Abstract]
Individually	5			0
Collectively				5
Loans Receivable [Abstract]
Ending Balances - Total	1,449			1,454
Ending Balances, Evaluated for Impairment [Abstract]
Individually	346			22
Collectively				1,432
Consumer Loans [Member] | Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances	$ 4
Ending Balances				$ 4

[1] Current provision included in the table only includes the portion related to loans receivable.

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Loans Receivable, Loans Individually Evaluated for Impairment (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2023	Sep. 30, 2023
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	$ 7,127	$ 11,962
Specific allocations	628	148
Unpaid Principal Balance	7,127
Recorded Investment With No Allowance	878
Recorded Investment With Allowance	6,249
Total Recorded Investment	7,127
Related Allowance	628
Average Recorded Investment	8,818
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	3,043	3,536
Specific allocations	495	127
Unpaid Principal Balance	2,559
Recorded Investment With No Allowance	156
Recorded Investment With Allowance	2,403
Total Recorded Investment	2,559
Related Allowance	495
Average Recorded Investment	3,644
Real Estate Loans [Member] | Commercial [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	1,654	0
Specific allocations	100	0
Unpaid Principal Balance	1,617
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	1,617
Total Recorded Investment	1,617
Related Allowance	100
Average Recorded Investment	1,675
Real Estate Loans [Member] | Multi-Family Residential [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	0	0
Specific allocations	0	0
Unpaid Principal Balance	0
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Real Estate Loans [Member] | Land [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	0	171
Specific allocations	0	6
Unpaid Principal Balance	0
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Real Estate Loans [Member] | Construction [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	0	69
Specific allocations	0	2
Unpaid Principal Balance	0
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance		0
Specific allocations		0
Unpaid Principal Balance	0
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	63
Real Estate Loans [Member] | Equity Lines of Credit [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance		0
Specific allocations		0
Unpaid Principal Balance	0
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	0
Commercial Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	2,339	7,840
Specific allocations	29	8
Unpaid Principal Balance	2,197
Recorded Investment With No Allowance	37
Recorded Investment With Allowance	2,160
Total Recorded Investment	2,197
Related Allowance	29
Average Recorded Investment	2,659
Consumer Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	22	346
Specific allocations	0	$ 5
Unpaid Principal Balance	0
Recorded Investment With No Allowance	0
Recorded Investment With Allowance	0
Total Recorded Investment	0
Related Allowance	0
Average Recorded Investment	23
Purchased Credit Impaired [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance	754
Recorded Investment With No Allowance	685
Recorded Investment With Allowance	69
Total Recorded Investment	754
Related Allowance	4
Average Recorded Investment	$ 754

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Loans Receivable, Troubled Debt Restructurings (Details) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2023 USD ($) Loan	Jun. 30, 2023 USD ($) Loan
Troubled Debt Restructurings [Abstract]
Number of loans in process of foreclosure | Loan	0
Number of loans identified as troubled debt restructuring | Loan	0	1
Troubled debt restructuring | $		$ 10
Financing Receivable, Accrued Interest, after Allowance for Credit Loss | $	$ 1,700	$ 1,600

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Deposits (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Summary of Deposits [Abstract]
Non-Interest Bearing	$ 146,057	$ 145,553
NOW Accounts	63,613	65,335
Money Markets	104,580	114,195
Passbook Savings	75,747	81,895
Total transaction accounts	389,997	406,978
Certificates of Deposit	202,508	190,383
Total Deposits	$ 592,505	$ 597,361

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Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2023	Sep. 30, 2022
Calculation of earnings per share [Abstract]
Net income	$ 1,220	$ 1,671
Weighted average shares outstanding - basic (in shares)	3,029,000	3,066,000
Effect of dilutive common stock equivalents (in shares)	79,000	162,000
Adjusted weighted average shares outstanding - diluted (in shares)	3,108,000	3,228,000
Basic earnings per share (in dollars per share)	$ 0.4	$ 0.55
Diluted earnings per share (in dollars per share)	$ 0.39	$ 0.52
Outstanding options to purchase shares (in shares)	364,916	389,616
Weighted average price per share of outstanding options (in dollars per share)	$ 11.65	$ 11.81
Components of weighted average outstanding shares [Abstract]
Average common shares issued (in shares)	6,125,000	6,125,000
Average unearned ESOP shares (in shares)	(102,000)	(125,000)
Average Company stock purchased (in shares)	(2,994,000)	(2,934,000)
Weighted average shares outstanding (in shares)	3,029,000	3,066,000
Stock Options [Member]
Calculation of earnings per share [Abstract]
Effect of dilutive common stock equivalents (in shares)	79,237	161,866

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Stock-Based Compensation, Stock Option Plans (Details) - shares	3 Months Ended
	Sep. 30, 2023	Dec. 23, 2011	Aug. 10, 2005
Stock Options [Member]
Stock Option Plans [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)	4,266
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)		389,044
Termination date	Dec. 23, 2021
Outstanding stock options (in shares)	37,350
Term of share-based payment award	10 years

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Stock-Based Compensation, Stock Incentive Plans (Details) - USD ($) $ in Thousands			3 Months Ended
	Nov. 13, 2019	Nov. 12, 2014	Sep. 30, 2023	Sep. 30, 2022	Nov. 11, 2020
Stock Options [Member]
Stock Incentive Plans [Abstract]
Award vesting period			5 years
2014 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Number of shares authorized under plan (in shares)		300,000
2014 Stock Incentive Plan [Member] | Share Awards [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares available for grant (in shares)			1,600
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]
Aggregate number of shares available for grant (in shares)			23,000
Aggregate number of shares of common stock reserved for future issuance (in shares)		225,000
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
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
Award vesting period			5 years
2011 Option Plan and the Stock Incentive Plans [Member]
Stock Incentive Plans [Abstract]
Compensation expense			$ 26	$ 26

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Related Party Transactions (Details) - USD ($) $ in Millions	Sep. 30, 2023	Jun. 30, 2023
Related Party Transactions [Abstract]
Loans made to directors and executive officers	$ 4.2	$ 4.4

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Fair Value Disclosures, Carrying Amount and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2023	Jun. 30, 2023
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	$ 40,409	$ 39,551
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	8,878	24,765
Securities Available-for-Sale	40,409	39,551
Securities to be Held-to-Maturity	72,806	74,423
Loans Held-for-Sale	589	4
Loans Receivable	506,599	489,493
Financial Liabilities [Abstract]
Deposits	592,505	597,361
Advances from FHLB	4,600	0
Other Borrowings	8,850	8,550
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	13,127	13,277
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	8,878	24,765
Securities Available-for-Sale	40,409	39,551
Securities to be Held-to-Maturity	57,557	61,222
Loans Held-for-Sale	589	4
Loans Receivable	465,463	444,117
Financial Liabilities [Abstract]
Deposits	500,015	481,055
Advances from FHLB	4,600	0
Other Borrowings	8,850	8,550
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 13,127	$ 13,277

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Fair Value Disclosures, Recurring and Non-recurring (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	$ 40,409	$ 39,551
Debt Securities [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	26,770	28,634
FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	10,493	11,156
FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	12,822	13,714
GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,455	3,764
US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	10,008	9,841
Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,631	1,076
Recurring [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	40,409	39,551
Recurring [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	10,493	11,156
Recurring [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	12,822	13,714
Recurring [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,455	3,764
Recurring [Member] | US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	10,008	9,841
Recurring [Member] | Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,631	1,076
Recurring [Member] | Level 1 [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 1 [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 1 [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 1 [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 1 [Member] | US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 1 [Member] | Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 2 [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	40,409	39,551
Recurring [Member] | Level 2 [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	10,493	11,156
Recurring [Member] | Level 2 [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	12,822	13,714
Recurring [Member] | Level 2 [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,455	3,764
Recurring [Member] | Level 2 [Member] | US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	10,008	9,841
Recurring [Member] | Level 2 [Member] | Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,631	1,076
Recurring [Member] | Level 3 [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 3 [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 3 [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 3 [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 3 [Member] | US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Recurring [Member] | Level 3 [Member] | Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	0	0
Non-recurring [Member]
Assets [Abstract]
Impaired Loans, Net of Allowance	11,814	701
Other Real Estate Owned, Net of Allowance	562	330
Total	12,376	1,031
Non-recurring [Member] | Level 1 [Member]
Assets [Abstract]
Impaired Loans, Net of Allowance	0	0
Other Real Estate Owned, Net of Allowance	0	0
Total	0	0
Non-recurring [Member] | Level 2 [Member]
Assets [Abstract]
Impaired Loans, Net of Allowance	0	0
Other Real Estate Owned, Net of Allowance	0	0
Total	0	0
Non-recurring [Member] | Level 3 [Member]
Assets [Abstract]
Impaired Loans, Net of Allowance	11,814	701
Other Real Estate Owned, Net of Allowance	562	330
Total	$ 12,376	$ 1,031

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Leases (Details) - USD ($) $ in Thousands	Sep. 30, 2023	Jun. 30, 2023
Lease Right-of-Use Assets [Abstract]
Operating lease right-of-use assets	$ 829	$ 829
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Lease Liabilities [Abstract]
Operating lease liabilities	$ 866	$ 866
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	35 years 1 month 6 days	35 years 4 months 24 days
Weighted-average discount rate [Abstract]
Operating leases	3.00%	3.00%