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:	March 31, 2024
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 May 9, 2024: The registrant had 3,138,588 shares of common stock outstanding.

INDEX

		Page
PART I	FINANCIAL INFORMATION
Item 1:	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Income	2
	Consolidated Statements of Comprehensive Income	3
	Consolidated Statements of Changes in Stockholders’ Equity	4
	Consolidated Statements of Cash Flows	6
	Notes to Consolidated Financial Statements	8
Item 2:	Management’s Discussion and Analysis of Financial Condition and   Results of Operations	37
Item 3:	Quantitative and Qualitative Disclosures About Market Risk	45
Item 4:	Controls and Procedures	45
PART II	OTHER INFORMATION
Item 1:	Legal Proceedings	46
Item 1A:	Risk Factors	46
Item 2:	Unregistered Sales of Equity Securities and Use of Proceeds	46
Item 3:	Defaults Upon Senior Securities	46
Item 4:	Mine Safety Disclosures	46
Item 5:	Other Information	46
Item 6:	Exhibits	47
SIGNATURES

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(In thousands except share and per share data)

	March 31, 2024			June 30, 2023
	(Unaudited)
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $2,681 and $22,215 at March 31, 2024 and June 30, 2023, respectively)	$	8,019		$	24,765
Securities Available-for-Sale, at fair value (amortized cost March 31, 2024: $33,089; June 30, 2023: $42,910, respectively)		29,829			39,551
Securities Held-to-Maturity, at amortized cost (fair value March 31, 2024: $55,660; June 30, 2023: $59,678, respectively)		68,706			72,879
Other Securities		1,596			1,544
Loans Held-for-Sale		1,904			4
Loans Receivable, Net of Allowance for Credit Losses (March 31, 2024: $4,887; June 30, 2023: $5,173, respectively)		499,267			489,493
Accrued Interest Receivable		1,932			1,790
Premises and Equipment, Net		18,161			16,561
Bank Owned Life Insurance		6,782			6,700
Goodwill		2,990			2,990
Core Deposit Intangible		1,275			1,533
Deferred Tax Asset		1,273			1,313
Real Estate Owned		-			368
Other Assets		1,292			1,424
Total Assets	$	643,026		$	660,915
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits:
Non-interest bearing	$	132,577		$	145,553
Interest-bearing		446,304			451,808
Total Deposits		578,881			597,361
Advances from Borrowers for Taxes and Insurance		416			554
Other Borrowings		8,500			8,550
Other Accrued Expenses and Liabilities		2,679			3,908
Total Liabilities		590,476			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: 3,145,236 and 3,133,351 Shares Issued and Outstanding at March 31, 2024 and June 30, 2023, respectively		32			31
Additional Paid-in Capital		41,321			40,981
Unearned ESOP Stock		(437	)		(523	)
Retained Earnings		14,257			12,707
Accumulated Other Comprehensive Loss		(2,623	)		(2,654	)
Total Stockholders’ Equity		52,550			50,542
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	643,026		$	660,915

See accompanying notes to unaudited consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME

(Unaudited) (In thousands except per share data)

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024			2023
INTEREST INCOME
Loans, including fees	$	7,281	$	6,151	$	21,952		$	16,585
Investment securities		124		100		573			105
Mortgage-backed securities		451		492		1,384			1,472
Other interest-earning assets		34		270		135			720
Total interest income		7,890		7,013		24,044			18,882
INTEREST EXPENSE
Deposits		3,194		1,342		8,688			2,387
Federal Home Loan Bank borrowings		87		52		180			72
Other bank borrowings		205		146		586			321
Total interest expense		3,486		1,540		9,454			2,780
Net interest income		4,404		5,473		14,590			16,102
PROVISION FOR (RECOVERY OF) CREDIT LOSSES		11		150		(5	)		718
Net interest income after provision for credit losses		4,393		5,323		14,595			15,384
NON-INTEREST INCOME
Gain on sale of loans		69		87		184			404
Gain (loss) on sale of real estate and fixed assets		-		4		(415	)		4
Gain on sale of securities		26		-		26			-
Income on bank owned life insurance		28		25		82			77
Service charges on deposit accounts		363		380		1,151			1,074
Other income		20		12		50			35
Total non-interest income		506		508		1,078			1,594
NON-INTEREST EXPENSE
Compensation and benefits		2,453		2,319		7,137			6,694
Occupancy and equipment		533		541		1,625			1,540
Data processing		139		163		513			564
Audit and examination fees		83		82		456			243
Franchise and bank shares tax		168		145		488			386
Advertising		77		97		302			238
Professional fees		96		885		443			1,085
Loan and collection		31		34		123			148
Amortization core deposit intangible		79		71		258			71
Deposit insurance premium		90		49		289			150
Other expenses		242		112		794			690
Total non-interest expense		3,991		4,498		12,428			11,809
Income before income taxes		908		1,333		3,245			5,169
PROVISION FOR INCOME TAX EXPENSE		176		271		290			723
NET INCOME	$	732	$	1,062	$	2,955		$	4,446
EARNINGS PER SHARE
Basic	$	0.24	$	0.35	$	0.97		$	1.48
Diluted	$	0.24	$	0.34	$	0.95		$	1.41

See accompanying notes to unaudited consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited) (In thousands)

	For the Three Months Ended March 31,						For the Nine Months Ended March 31,
	2024			2023			2024			2023
Net Income	$	732		$	1,062		$	2,955		$	4,446
Other Comprehensive Income (Loss), Net of Tax
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period		(608	)		763			65			(348	)
Less: reclassification adjustments for securities gains (losses) realized in net income		26			-			26			-
Income tax effect		133			(160	)		(8	)		73
Total Other Comprehensive Income (Loss), Net of Tax		(501	)		603			31			(275	)
Total Comprehensive Income	$	231		$	1,665		$	2,986		$	4,171

See accompanying notes to unaudited consolidated financial statements.

3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

THREE MONTHS ENDED MARCH 31, 2024 and 2023

(Unaudited) (In thousands)

	Common Stock		Additional Paid-in Capital		Unearned ESOP Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
BALANCE – December 31, 2022	$	31	$	40,669	$	(581	)	$	11,147		$	(2,577	)	$	48,689
Net Income		-		-		-			1,062			-			1,062
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects		-		-		-			-			603			603
Share Awards Earned		-		10		-			-			-			10
Stock Options Vested		-		26		-			-			-			26
Common Stock Issuance for Stock Option Exercises		-		19		-			-			-			19
ESOP Compensation Earned		-		70		29			-			-			99
Company Stock Purchased		-		-		-			(1	)		-			(1	)
Dividends Declared		-		-		-			(384	)		-			(384	)
BALANCE – March 31, 2023	$	31	$	40,794	$	(552	)	$	11,824		$	(1,974	)	$	50,123
BALANCE – December 31, 2023	$	31	$	41,224	$	(466	)	$	13,927		$	(2,122	)	$	52,594
Net Income		-		-		-			732			-			732
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects		-		-		-			-			(501	)		(501	)
Share Awards Earned		-		5		-			-			-			5
Stock Options Vested		-		23		-			-			-			23
Common Stock Issuance for Stock Option Exercises		1		19		-			-			-			20
ESOP Compensation Earned		-		50		29			-			-			79
Company Stock Purchased		-		-		-			(9	)		-			(9	)
Dividends Declared		-		-		-			(393	)		-			(393	)
BALANCE – March 31, 2024	$	32	$	41,321	$	(437	)	$	14,257		$	(2,623	)	$	52,550

See accompanying notes to unaudited consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS’ EQUITY

NINE MONTHS ENDED MARCH 31, 2024 and 2023

(Unaudited) (In thousands)

	Common Stock			Additional Paid-in Capital		Unearned ESOP Stock			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Total Stockholders’ Equity
BALANCE – June 30, 2022	$	34		$	40,145	$	(639	)	$	14,506		$	(1,699	)	$	52,347
Net Income		-			-		-			4,446			-			4,446
Changes in Unrealized Loss on Securities Available-for-Sale, Net of Tax Effects		-			-		-			-			(275	)		(275	)
Share Awards Earned		-			123		-			-			-			123
Stock Options Vested		-			80		-			-			-			80
Common Stock Issuance for Stock Option Exercises		(3	)		220		-			-			-			217
ESOP Compensation Earned		-			226		87			-			-			313
Company Stock Purchased		-			-		-			(5,963	)		-			(5,963	)
Dividends Declared		-			-		-			(1,165	)		-			(1,165	)
BALANCE – March 31, 2023	$	31		$	40,794	$	(552	)	$	11,824		$	(1,974	)	$	50,123
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		-			-		-			2,955			-			2,955
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects		-			-		-			-			31			31
Share Awards Earned		-			118		-			-			-			118
Stock Options Vested		-			46		-			-			-			46
Common Stock Issuance for Stock Option Exercises		1			19		-			-			-			20
ESOP Compensation Earned		-			157		86			-			-			243
Company Stock Purchased		-			-		-			(39	)		-			(39	)
Dividends Declared		-			-		-			(1,177	)		-			(1,177	)
BALANCE – March 31, 2024	$	32		$	41,321	$	(437	)	$	14,257		$	(2,623	)	$	52,550

 
See accompanying notes to unaudited consolidated financial statements.

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited) (In thousands)

	Nine Months Ended
	March 31,
	2024			2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$	2,955		$	4,446
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Gain on Sale of Loans		(184	)		(404	)
Gain on Sale of Investments		(26	)		-
Net Amortization and (Accretion) on Securities		(246	)		21
Amortization of Deferred Loan Fees		(95	)		(270	)
Amortization of Purchased Loans		(666	)		-
Provision for (Recovery of) Credit Losses		(5	)		718
Depreciation of Premises and Equipment		712			648
Loss on Sale of Real Estate		415			-
Gain on Sale of Fixed Assets		-			(4	)
ESOP Compensation Expense		243			313
Stock Option Expense		46			80
Deferred Income Tax (Benefit) Expense		(28	)		47
Share Awards Expense		118			92
Increase in Cash Surrender Value on Bank Owned Life Insurance		(82	)		(77	)
Amortization of Core Deposit Intangible		258			71
Loans Held-for-Sale – Originations and Purchases		(10,640	)		(22,065	)
Loans Held-for-Sale – Sale and Principal Repayments		8,924			25,287
Changes in Assets and Liabilities:
Accrued Interest Receivable		(142	)		(496	)
Other Operating Assets		132			(52	)
Other Operating Liabilities		(1,229	)		479
Net Cash Provided by Operating Activities		460			8,834
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections		(9,710	)		(93,678	)
Deferred Loan Fees Collected		48			135
Acquisition of Premises and Equipment		(2,312	)		(997	)
Net Cash Paid in Acquisition		-			(10,244	)
Changes in Federal Home Loan Bank Stock		(52	)		(983	)
Activity in Available-for-Sale Securities:
Principal Payments on Securities		9,388			3,764
Purchase of Securities		(2,667	)		(20,826	)
Proceeds from Sales of Municipals		3,388			-
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities		4,157			5,121
Proceeds from Sale of Other Real Estate Owned		456			-
Improvements to Other Real Estate Owned Prior to Disposition		(38	)		-
Net Cash Provided by (Used in) Investing Activities		2,658			(117,708	)

See accompanying notes to unaudited consolidated financial statements.  

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)

(Unaudited) (In thousands)

	Nine Months Ended
	March 31,
	2024			2023
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease)/ Increase in Deposits	$	(18,480	)	$	82,383
Proceeds from Advances from Federal Home Loan Bank		792,700			163,001
Repayments of Advances from Federal Home Loan Bank		(792,700	)		(153,833	)
Dividends Paid		(1,177	)		(1,165	)
Company Stock Purchased		(39	)		(5,963	)
Net Decrease in Advances from Borrowers for Taxes and Insurance		(138	)		(176	)
Proceeds from Other Bank Borrowings		2,700			5,900
Repayments of Other Bank Borrowings		(2,750	)		-
Proceeds from Stock Options Exercised		20			217
Net Cash Provided by Financing Activities		(19,864	)		90,364
NET DECREASE IN CASH AND CASH EQUIVALENTS		(16,746	)		(18,510	)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD		24,765			64,078
CASH AND CASH EQUIVALENTS - END OF PERIOD	$	8,019		$	45,568
SUPPLEMENTAL CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds	$	9,379		$	2,598
Income Taxes Paid		680			750
Market Value Adjustment for Gain (Loss) on Securities Available-for-Sale		65			(348	)
Transfer from Loans to Other Real Estate Owned		465			-
Acquisitions:
Fair Value of Tangible Assets Acquired		-			82,889
Other Intangible Assets Acquired		-			1,510
Liabilities Assumed		-			77,145
Net Identifiable Assets Acquired Over Liabilities Assumed	$	-		$	7,254

See accompanying notes to unaudited consolidated financial statements.

7

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 and nine month periods ended March 31, 2024 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 March 31, 2024.  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 March 31, 2024, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Cash and Cash Equivalents

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

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HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO 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 debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums and accretion of discounts, using the interest method. Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.

Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities. Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale. Trading account and available-for-sale securities are carried at fair value. Unrealized holding gains and losses on trading securities are included in earnings, while net unrealized holding gains and losses on available-for-sale debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of March 31, 2024 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 in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors. Any impairment of available for sale investments 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 in such situation. Accrued interest 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 are reflected as other securities 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. These securities are periodically evaluated for impairment based on the ultimate recoverability of par value.

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 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. 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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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

Allowance for Credit Losses (continued)

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 and are still considered a pass.

• 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 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.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

Allowance for Credit Losses (continued)

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. 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.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

Income Taxes (continued)

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 $0.97 and $0.95, respectively, for the nine months ended March 31, 2024 compared to basic and diluted earnings per share of $1.48 and $1.41, respectively, for the nine months ended March 31, 2023.  The Company’s basic and diluted earnings per share were $0.24 and $0.24, respectively, for the three months ended March 31, 2024, compared to basic and diluted earnings per share of $0.35 and $0.34, respectively, for the three months ended March 31, 2023.

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 nine months ended March 31, 2024, 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 nine months ended March 31, 2024 that materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1.          Summary of Accounting Policies (continued)

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 immaterial and recognized as a cumulative effect adjustment 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.

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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:

	March 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	6,929	$	1	$	775	$	6,155
FNMA Mortgage-Backed Certificates		18,073		-		1,706		16,367
GNMA Mortgage-Backed Certificates		4,223		3		852		3,374
Total Debt Securities		29,225		4		3,333		25,896
US Treasury Securities		3,499		67		-		3,566
Municipals		365		2		-		367
Total Securities Available-for-Sale	$	33,089	$	73	$	3,333	$	29,829
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	28,195	$	-	$	5,716	$	22,479
FHLMC Mortgage-Backed Certificates		38,608		-		7,207		31,401
FNMA Mortgage-Backed Certificates		611		-		65		546
Total Debt Securities		67,414		-		12,988		54,426
Municipals		1,292		-		58		1,234
Total Securities Held-to-Maturity	$	68,706	$	-	$	13,046	$	55,660

	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
Municipals		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
Total Securities Held-to-Maturity	$	72,879	$	-	$	13,201	$	59,678

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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 March 31, 2024 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		2,630		2,512		543		514
Over Ten Years		26,594		23,383		66,871		53,912
		29,225		25,896		67,414		54,426
US Treasury Securities
Within One Year or Less	$	3,000	$	3,063	$	-	$	-
One through Five Years		499		503		-		-
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		-		-
		3,499		3,566		-		-
Municipals
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		365		367		215		207
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		1,077		1,027
		365		367		1,292		1,234
Total	$	33,089	$	29,829	$	68,706	$	55,660

Securities available-for-sale totaling $2.7 million were purchased during the nine months ended March 31, 2024. Securities available-for-sale totaling $3.4 million were sold during the nine months ended March 31, 2024.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale and held-to-maturity at March 31, 2024 and June 30, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2024
	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	$	-	$	4	$	3,333	$	25,352
Total Securities Available-for-Sale	$	-	$	4	$	3,333	$	25,352
Securities Held-to-Maturity
Mortgage-Backed Securities	$	-	$	-	$	12,988	$	54,426
Municipals		-		-		58		1,234
Total Securities Held-to-Maturity	$	-	$	-	$	13,046	$	55,660

The number of debt securities in an unrealized loss position was 54 at March 31, 2024

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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
Securities Held-to-Maturity
Mortgage-Backed Securities	$	215	$	1,859	$	12,906	$	56,587
Municipals		-		-		80	$	1,231
Total Securities Held-to-Maturity	$	215	$	1,859	$	12,986	$	57,818

Management evaluates securities for impairment from credit losses at least quarterly, and more frequently when economic and market conditions warrant such evaluations. Consideration is given to numerous factors including, but not limited to, the extent to which the fair value is less than the amortized cost basis; adverse conditions causing changes in the financial condition of the issuer of the security or underlying loan guarantors; changes to the rating of the security by a rating agency; and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which may extend to maturity. If this evaluation indicates the existence of credit losses, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis. If the present value of expected cash flows is less than the amortized cost basis, an allowance for credit losses is recorded, limited by the amount that the fair value of the security is less than its amortized cost.

The unrealized losses on the Company’s investment in mortgage-backed securities at March 31, 2024 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 March 31, 2024.

At March 31, 2024, securities with a carrying value of $2.6 million were pledged to secure public deposits and securities and mortgage loans with a carrying value of $188.9 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:

	March 31, 2024			June 30, 2023
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	186,023		$	179,579
Commercial		150,130			148,441
Multi-Family Residential		40,603			28,849
Land		31,442			26,841
Construction		16,026			28,035
Equity and Second Mortgage		2,750			2,450
Equity Lines of Credit		18,919			23,817
Total Mortgage Loans		445,893			438,012
Commercial Loans		56,959			55,364
Consumer Loans
Loans on Savings Accounts		489			372
Other Consumer Loans		929			1,082
Total Consumer Other Loans		1,418			1,454
Total Loans		504,270			494,830
Less:  Allowance for Credit Losses		(4,887	)		(5,173	)
Unamortized Loan Fees		(116	)		(164	)
		(5,003	)		(5,337	)
Net Loans Receivable	$	499,267		$	489,493

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.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

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

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 March 31, 2024:

	Term Loans Amortized Cost by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	4,021	$	52,429	$	46,859	$	37,755	$	23,169	$	18,421	$	-	$	182,654
Special mention		-		1,316		-		363		-		463		-		2,142
Substandard		-		292		127		-		677		131		-		1,227
Doubtful		-		-		-		-		-		-		-	$	-
Total one-to-four family residential	$	4,021	$	54,037	$	46,986	$	38,118	$	23,846	$	19,015	$	-	$	186,023
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	136	$	484	$	-	$	620
Commercial
Risk rating
Pass	$	4,442	$	32,698	$	44,147	$	44,285	$	20,826	$	2,195	$	-	$	148,593
Special mention		-		1,366		111		60		-		-		-		1,537
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total commercial	$	4,442	$	34,064	$	44,258	$	44,345	$	20,826	$	2,195	$	-	$	150,130
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 March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
Multi-family residential
Risk rating
Pass	$	2,000	$	4,590	$	13,550	$	2,241	$	7,038	$	11,184	$	-	$	40,603
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	2,000	$	4,590	$	13,550	$	2,241	$	7,038	$	11,184	$	-	$	40,603
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	2,331	$	12,972	$	7,472	$	6,257	$	1,661	$	369	$	-	$	31,062
Special mention		-		73		-		-		-		-		-		73
Substandard		-		-		307		-		-		-		-		307
Doubtful		-		-		-		-		-		-		-		-
Total land	$	2,331	$	13,045	$	7,779	$	6,257	$	1,661	$	369	$	-	$	31,442
Current period gross charge-offs	$	-	$	-	$	7	$	-	$	-	$	-	$	-	$	7
Construction
Risk rating
Pass	$	2,336	$	11,898	$	1,792	$	-	$	-	$	-	$	-	$	16,026
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	2,336	$	11,898	$	1,792	$	-	$	-	$	-	$	-	$	16,026
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	443	$	1,096	$	558	$	108	$	388	$	97	$	18,919	$	21,609
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		7		53		-		-		60
Doubtful		-		-		-		-		-		-		-		-
Total home equity and lines of credit	$	443	$	1,096	$	558	$	115	$	441	$	97	$	18,919	$	21,669
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk rating
Pass	$	6,974	$	25,024	$	9,466	$	6,343	$	4,830	$	2,010	$	-	$	54,647
Special mention		-		1,853		36		198		-		-		-		2,087
Substandard		-		78		107		40		-		-		-		225
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	6,974	$	26,955	$	9,609	$	6,581	$	4,830	$	2,010	$	-	$	56,959
Current period gross charge-offs	$	-	$	1	$	5	$	-	$	-	$	-	$	-	$	6
Consumer loans
Risk rating
Pass	$	132	$	629	$	246	$	26	$	299	$	68	$	-	$	1,400
Special mention		-		-		-		-		-		-		-		-
Substandard		-		18		-		-		-		-		-		18
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	132	$	647	$	246	$	26	$	299	$	68	$	-	$	1,418
Current period gross charge-offs	$	-	$	6	$	3	$	3	$	-	$	5	$	-	$	17
Total
Pass	$	22,679	$	141,336	$	124,090	$	97,015	$	58,211	$	34,344	$	18,919	$	496,594
Special mention		-		4,608		147		621		-		463		-		5,839
Substandard		-		388		541		47		730		131		-		1,837
Doubtful		-		-		-		-		-		-		-		-
Total	$	22,679	$	146,332	$	124,778	$	97,683	$	58,941	$	34,938	$	18,919	$	504,270
Current period gross charge-offs	$	-	$	7	$	15	$	3	$	136	$	489	$	-	$	650

22

Index

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

23

Index

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 March 31, 2024 and June 30, 2023:

March 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,130	$	212	$	1,749	$	4,091	$	181,932	$	186,023	$	930
Commercial		-		-		-		-		150,130		150,130		-
Multi-Family Residential		-		-		-		-		40,603		40,603		-
Land		-		-		308		308		31,134		31,442		-
Construction		-		-		-		-		16,026		16,026		-
Equity and Second Mortgage		-		10		16		26		2,724		2,750		-
Equity Lines of Credit		238		-		-		238		18,681		18,919		-
Commercial Loans		748		-		261		1,009		55,950		56,959		-
Consumer Loans		42		-		-		42		1,376		1,418		-
Total	$	3,158	$	222	$	2,334	$	5,714	$	498,556	$	504,270	$	930

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 nine months ended March 31, 2024 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 nine months ended March 31, 2024 and the year ended June 30, 2023 was approximately $79,000 and $182,000, respectively.

24

Index

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 nine months ended March 31, 2024 and year ended June 30, 2023 was as follows:

	Real Estate Loans
March 31, 2024	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		(620	)		-			-			(7	)		-			-			(6	)		(17	)		(650	)
Recoveries		3			-			-			1			-			6			-			-			10
Current Provision (Recovery)(1)		381			(413	)		53			68			(105	)		(60	)		42			29			(5	)
Ending Balances	$	2,352		$	1,141		$	142		$	251		$	105		$	227		$	648		$	21		$	4,887

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

	Real Estate Loans
June 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	$	1,367		$	1,295	$	357		$	305		$	282		$	197		$	646		$	2	$	4,451
Charge-Offs		(41	)		-		-			-			-			(26	)		(170	)		-		(237	)
Recoveries		4			-		-			-			-			5			82			-		91
Current Provision (Recovery)		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

25

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The Company held loans that were individually evaluated for credit losses at December 31, 2023 and March 31, 2024 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.  The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date.  The following describes the types of collateral that secure collateral dependent loans:

• One-to four-family first mortgages are primarily secured by first liens on residential real estate.

• Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including self-storage facilities, hotels and restaurants.

• Multi-family loans are primarily secured by residential property that include five or more housing units.

• Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.

• Home equity loans and lines are primarily secured by first and junior liens on residential real estate.

• Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment.

• Consumer loans considered collateral dependent are primarily secured by titled vehicles.

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2024 and impaired loans at June 30, 2023:

March 31, 2024	Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,704	$	116
Commercial		128		5
Land		389		2
Home Equity Loans and Lines of Credit		153		3
Commercial Loans		155		77
Consumer Loans		78		4
Total	$	3,607	$	207

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
Equity and Second Mortgage		-		-		-		-		-		63
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

26

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

3.          Loans Receivable (continued)

Credit Quality Indicators (continued)

The Bank has no commitments to loan additional funds to borrowers whose loans were previously in non-accrual status. As of March 31, 2024, 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 March 31, 2024, there were no loans whose terms were modified for borrowers who may be experiencing financial difficulties.

At March 31, 2024 and June 30, 2023, accrued interest receivable on loans was $1.7 million and included within accrued interest receivable on the consolidated balance sheets.

4. Deposits

Deposits at March 31, 2024 and June 30, 2023 consist of the following classifications:

	March 31, 2024		June 30, 2023
	(In Thousands)
Non-Interest Bearing	$	132,577	$	145,553
NOW Accounts		65,372		65,335
Money Markets		80,338		114,195
Passbook Savings		71,792		81,895
		350,079		406,978
Certificates of Deposit		228,802		190,383
Total Deposits	$	578,881	$	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 and nine months ended March 31, 2024 and 2023 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(In Thousands, Except Per Share Data)
Net income	$	732	$	1,062	$	2,955	$	4,446
Weighted average shares outstanding – basic		3,047		3,006		3,040		3,022
Effect of dilutive common stock equivalents		44		126		56		142
Adjusted weighted average shares outstanding – diluted		3,091		3,132		3,096		3,164
Basic earnings per share	$	0.24	$	0.35	$	0.97	$	1.48
Diluted earnings per share	$	0.24	$	0.34	$	0.95	$	1.41

28

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

5. Earnings Per Share (Continued)

For the three months ended March 31, 2024 and 2023, there were outstanding options to purchase 364,037 and 384,789 shares, respectively, at a weighted average exercise price of $11.66 and $11.81 per share, respectively, and for the nine months ended March 31, 2024 and 2023, there were outstanding options to purchase 364,625 and 387,701 shares, respectively, at a weighted average exercise price of $11.66 and $11.81 per share, respectively.  For the quarter ended March 31, 2024 and 2023, 43,676 options and 126,427 options, respectively, were included in the computation of diluted earnings per share. For the nine month period ended March 31, 2024 and 2023, 55,910 options and 142,259 options, respectively, were included in the computation of diluted earnings per share.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2024			2023			2024			2023
	(In Thousands)
Average common shares issued		6,124			6,124			6,124			6,124
Average unearned ESOP shares		(94	)		(113	)		(96	)		(119	)
Average Company stock purchased		(2,983	)		(3,005	)		(2,988	)		(2,983	)
Weighted average shares outstanding		3,047			3,006			3,040			3,022

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 March 31, 2024 remain in effect for the remainder of their original ten year terms and expire July 31, 2024.

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 35,350 outstanding options as of March 31, 2024 remain in effect for the remainder of their original ten year term and expire July 31, 2024.

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.

30

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

6. Stock-Based Compensation (Continued)

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. The 2014 Stock Incentive Plan will terminate on August 13, 2024.

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 March 31, 2024, there are 1,600 plan share awards and 24,600 stock options available for future grants under the Stock Incentive Plans.

For the three months ended March 31, 2024 and 2023, compensation expense charged to operations under the Stock Incentive Plans was $5,000 and $81,000, respectively. Compensation expense pertaining to the Stock Incentive Plans was $118,000 and $173,000, respectively, for the nine months ended March 31, 2024 and 2023.

7. Related Party Transactions

Certain directors and executive officers were indebted to the Bank in the approximate aggregate amounts of $4.3 million and $4.4 million at March 31, 2024 and June 30, 2023, respectively.

8. Fair Value Disclosures

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

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

31

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Fair Value Disclosures (continued)

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.

32

Index

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8. Fair Value Disclosures (continued)

At March 31, 2024 and June 30, 2023, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2024				June 30, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,019	$	8,019	$	24,765	$	24,765
Securities Available-for-Sale		29,829		29,829		39,551		39,551
Securities to be Held-to-Maturity		70,302		57,256		74,423		61,222
Loans Held-for-Sale		1,904		1,904		4		4
Loans Receivable		499,267		461,572		489,493		444,117
Financial Liabilities
Deposits	$	578,881	$	576,895	$	597,361	$	481,055
Other Borrowings		8,500		8,500		8,550		8,550
Off-Balance Sheet Items
Mortgage Loan Commitments	$	14,555	$	14,555	$	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.

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8.          Fair Value Disclosures (continued)

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

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

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

• Level 3 – Fair value is based 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 nine months ended March 31, 2024.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2024 and June 30, 2023 are as follows:

	Fair Value Measurements
March 31, 2024	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	6,155	$	-	$	6,155
FNMA		-		16,367		-		16,367
GNMA		-		3,374		-		3,374
US Treasury Notes		-		3,566		-		3,566
Municipal Bonds		-		367		-		367
Total	$	-	$	29,829	$	-	$	29,829

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NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

8.          Fair Value Disclosures (continued)

	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 March 31, 2024 and June 30, 2023 are as follows:

	Fair Value Measurements
March 31, 2024	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	2,747	$	2,747
Total	$	-	$	-	$	2,747	$	2,747

	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 March 31, 2024 and June 30, 2023, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows:

(In Thousands)		March 31, 2024		June 30, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	818	$	829
Total Lease Right-of-Use Assets		$	818	$	829
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	863	$	866
Total Lease Liabilities		$	863	$	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.

	March 31, 2024			June 30, 2023
Weighted-average remaining lease term
Operating leases	34.7 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 nine months ended March 31, 2024, 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.

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 March 31, 2024

General

Total assets decreased $17.9 million, or 2.7%, from $660.9 million at June 30, 2023 to $643.0 million at March 31, 2024. The decrease in assets was comprised of decreases in cash and cash equivalents of $16.7 million, or 67.6%, from $24.8 million at June 30, 2023 to $8.0 million at March 31, 2024, investment securities of $13.8 million, or 12.1%, from $114.0 million at June 30, 2023 to $100.1 million at March 31, 2024, real estate owned of $368,000, or 100.0% from $368,000 at June 30, 2023 to none at March 31, 2024, core deposit intangible of $258,000, or 16.8%, from $1.5 million at June 30, 2023 to $1.3 million at March 31, 2024, other assets of $132,000, or 9.3%, from $1.4 million at June 30, 2023 to $1.3 million at March 31, 2024, deferred tax asset of $40,000, or 3.0%, from $1.31 million at June 30, 2023 to $1.27 million at March 31, 2024, and partially offset by increases in net loans receivable of $9.8 million, or 2.0%, from $489.5 million at June 30, 2023 to $499.3 million at March 31, 2024, loans-held-for-sale of $1.9 million, from $4,000 at June 30, 2023 to $1.9 million at March 31, 2024, premises and equipment of $1.6 million, or 9.7%, from $16.6 million at June 30, 2023 to $18.2 million at March 31, 2024, accrued interest receivable of $142,000, or 7.9%, from $1.8 million at June 30, 2023 to $1.9 million at March 31, 2024, and bank owned life insurance of $82,000, or 1.2%, from $6.7 million at June 30, 2023 to $6.8 million at March 31, 2024. The decrease in cash and cash equivalents was primarily due to a decrease in total deposits and the funding of additional loan growth.  The decrease in held to maturity securities was primarily due to $4.2 million in principal payments.

Cash and Cash Equivalents

Cash and cash equivalents decreased $16.7 million, or 67.6%, from $24.8 million at June 30, 2023 to $8.0 million at March 31, 2024. The decrease in cash and cash equivalents was primarily due to the funding of loan originations along with a reduction in total deposits.

Loans Receivable, Net

Loans receivable, net, increased by $9.8 million, or 2.0%, from $489.5 million at June 30, 2023 to $499.3 million at March 31, 2024.  The increase in loans receivable, net was primarily due to increases in multi-family residential loans of $11.8 million, one-to-four family residential loans of $6.4 million, land loans of $4.6 million, commercial real estate loans of $1.7 million, commercial non-real estate loans of $1.6 million, equity and second mortgage loans of $300,000, partially offset by decreases in construction loans of $12.0 million, equity line-of-credit loans of $4.9 million, and consumer loans of $30,000.

Loans Held-for-Sale

Loans held-for-sale increased $1.9 million, from $4,000 at June 30, 2023 to $1.9 million at March 31, 2024.The increase in loans held for sale at March 31, 2024, was due to the timing of loans originated and sold rather than an increase in loan originations during the period.

Investment Securities

Investment securities decreased $13.8 million, or 12.1%, from $114.0 million at June 30, 2023 to $100.1 million at March 31, 2024. The decrease in investment securities was primarily due to $13.5 million in principal repayments on mortgage backed securities and securities sold of $3.4 million, partially offset by security purchases of $2.7 million.

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Discussion of Financial Condition Changes from June 30, 2023 to March 31, 2024 (continued)

Premises and Equipment, Net

Premises and equipment, net increased $1.6 million, or 9.7%, from $16.6 million at June 30, 2023 to $18.2 million at March 31, 2024. The increase in premises and equipment was primarily due to construction costs of a new Minden branch that will replace an existing temporary location and is expected to open in May 2024.

Asset Quality

At March 31, 2024, the Company had $2.4 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 six commercial non-real estate loans, six single-family residential loans, three home equity line-of-credit loans, and one land loan at March 31, 2024, 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 March 31, 2024 the Company had seven commercial non-real-estate loans, seven single family residential loans, four home-equity line-of-credit loans, one land loan, and one auto loan classified as substandard, 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 March 31, 2024 or June 30, 2023.

Total Liabilities

Total liabilities decreased $19.9 million, or 3.3%, from $610.4 million at June 30, 2023 to $590.5 million at March 31, 2024. The decrease in liabilities was comprised of decreases in total deposits of $18.5 million, or 3.1%, from $597.4 million at June 30, 2023 to $578.9 million at March 31, 2024, other accrued expenses and liabilities of $1.2 million, or 31.4%, from $3.9 million at June 30, 2023 to $2.7 million at March 31, 2024, advances from borrowers for taxes and insurance of $138,000, or 24.9 %, from $554,000 at June 30, 2023 to $416,000 at March 31, 2024, and other borrowings of $50,000, or 0.6%, from $8.6 million at June 30, 2023 to $8.5 million at March 31, 2024. The decrease in deposits resulted from decreases in money market deposits of $33.9 million, or 29.6%, from $114.2 million at June 30, 2023 to $80.3 million at March 31, 2024, non-interest deposits of $13.0 million, or 8.9%, from $145.6 million at June 30, 2023 to $132.6 million at March 31, 2024, and savings deposits of $10.1 million, or 12.3%, from $81.9 million at June 30, 2023 to $71.8 million at March 31, 2024, partially offset by increases in certificates of deposit of $38.4 million, or 20.2%, from $190.4 million at June 30, 2023 to $228.8 million at March 31, 2024, and NOW accounts of $37,000, or 0.1%, from $65.3 million at June 30, 2023 to $65.4 million at March 31, 2024. The Company  had no balances in brokered deposits at March 31, 2024 compared to $3.0 million at  June 30, 2023. There was a shift of balances between deposit categories due to customers moving funds from lower yielding categories to higher yielding categories. The $18.5 million decrease in deposits from June 30, 2023 to March 31, 2024 was primarily due to an estate settlement totaling $24.8 million. $15.4 million of the settlement has been paid out to date, with the remaining $9.4 million expected to be paid out in the future.

Stockholders’ Equity

Stockholders’ equity increased $2.0 million, or 4.0%, from $50.5 million at June 30, 2023 to $52.6 million at March 31, 2024. The increase in stockholders’ equity was comprised of current year net income of $3.0 million, a decrease in the Company’s accumulated other comprehensive loss of $31,000, the vesting of restricted stock awards, stock options, and the release of employee stock ownership plan shares totaling $407,000, and proceeds from the issuance of common stock from the exercise of stock options of $19,000, partially offset by dividends paid totaling $1.2 million, CECL implementation totaling $189,000, and stock repurchases of $39,000.

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Discussion of Financial Condition Changes from June 30, 2023 to March 31, 2024 (continued)

Regulatory Capital

The Bank is required to meet minimum capital standards promulgated by the Office of the Comptroller of the Currency (“OCC”).  At March 31, 2024, Home Federal Bank’s regulatory capital was well in excess of the minimum capital requirements. At March 31, 2024, Home Federal Bank exceeded each of its regulatory capital requirements with tangible equity, common equity Tier 1, core, and total risk-based capital ratios of 9.05%, 12.97%, 9.05%, and 14.05%, respectively.

Comparison of Operating Results for the Three and Nine Months Ended March 31, 2024 and 2023

General

The decrease in net income for the three months ended March 31, 2024, compared to the same period in 2023, resulted from a decrease in net interest income of $1.1 million, or 19.5%, and a decrease in non-interest income of $2,000, or 0.4%, partially offset by a decrease in non-interest expense of $507,000, or 11.3%, a decrease in the provision of credit losses of $139,000, or 92.7%, and a decrease in provision for income taxes of $95,000, or 35.1%. The decrease in net interest income for the three months ended March 31, 2024, compared to the same period in 2023, resulted from an increase in total interest expense of $1.9 million, or 126.4%, partially offset by an increase in total interest income of $877,000, or 12.5%.  The Company’s average interest rate spread was 2.16% for the three months ended March 31, 2024, compared to 3.15% for the three months ended March 31, 2023. The Company’s net interest margin was 2.89% for the three months ended March 31, 2024, compared to 3.56% for the three months ended March 31, 2023.

The decrease in net income for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from a decrease in net interest income of $1.5 million, or 9.4%, an increase in non-interest expense of $619,000, or 5.2%, and a decrease in non-interest income of $516,000, or 32.4%, partially offset by a decrease in the provision of credit losses of $723,000, or 100.7%, and a decrease in provision for income taxes of $433,000, or 59.9%. The decrease in net interest income for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from an increase in total interest expense of $6.7 million, or 240.1%, partially offset by an increase in total interest income of $5.2 million, or 27.3%.  The Company’s average interest rate spread was 2.46% for the nine months ended March 31, 2024 compared to 3.55% for the nine months ended March 31, 2023. The Company’s net interest margin was 3.14% for the nine months ended March 31, 2024 compared to 3.84% for the nine months ended March 31, 2023.

Provision for Credit Losses

On July 1, 2023, the Company adopted the new current expected credit loss (“CECL”) methodology for estimating credit losses.   This resulted in a $189,000 increase to the allowance for credit losses (the “ACL”) and a one-time cumulative adjustment resulted in a $189,000 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 fiscal 2024, a recovery of credit losses of $16,000 was recorded in the second quarter of fiscal 2024 and a provision of $11,000 was recorded in the third quarter of fiscal 2024.  As of March 31, 2024, the ACL was $4.9 million, and the ratio of ACL to gross loans was 0.97%.  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 and Nine Months Ended March 31, 2024 and 2023 (continued)

Non-interest Income

The $2,000 decrease in non-interest income for the three months ended March 31, 2024, compared to the same period in 2023, resulted from a decrease in gain on sale of loans of $18,000, a decrease in service charges on deposit accounts of $17,000, and a decrease in gain on sale of fixed assets of $4,000, partially offset by an increase in gain on sale of securities of $26,000, an increase in other non-interest income of $8,000, and an increase in income on bank owned life insurance of $3,000. The $516,000 decrease in non-interest income for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from an increase in loss on sale of real estate of $415,000, a decrease in gain on sale of loans of $220,000, and a decrease in gain on sale of fixed assets of $4,000, partially offset by an increase in service charges on deposit accounts of $77,000, an increase in gain on sale of securities of $26,000, an increase in other non-interest income of $15,000, and an increase in income from bank owned life insurance of $5,000. The decreases in gain on sale of loans for both the quarter and nine months ended March 31, 2024, were primarily due to a decrease in mortgage loan originations caused by the higher interest rate environment.  The loss on sale of real estate for the nine months ended March 31, 2024, was primarily due to the bulk sale of twenty-one distressed rental properties.

Non-interest Expense

The $507,000 decrease in non-interest expense for the three months ended March 31, 2024, compared to the same period in 2023, resulted from decreases in professional fees of $789,000, data processing expense of $24,000, advertising expense of $20,000, occupancy and equipment expense of $8,000, and loan and collection expense of $3,000, partially offset by increases in compensation and benefits expense of $134,000, other non-interest expense of $130,000, deposit insurance premium expense of $41,000, franchise and bank shares tax expense of $23,000, amortization of core deposit intangible expense of $8,000, and audit and examination fees of $1,000. The $619,000 increase in non-interest expense for the nine months ended March 31, 2024, compared to the same period in 2023, resulted from increases in compensation and benefits expense of $443,000, audit and examination fees of $213,000, amortization of core deposit intangible expense of $187,000, deposit insurance premium expense of $139,000, other non-interest expense of $104,000, franchise and bank shares tax expense of $102,000,  occupancy and equipment expense of $85,000, and advertising expense of $64,000, partially offset by decreases in professional fees of $642,000, data processing expense of $51,000, and loan and collection expense of $25,000. The decrease in professional fees for both periods was due to the acquisition of First National Bank of Benton, which increased professional fees for the March 31, 2023 quarter. The increases in compensation and benefits expense were primarily due to additional branch and back office staff.

Income Taxes

There was an income tax expense of $176,000 and $290,000 for the three and nine months ended March 31, 2024, respectively, resulting in an effective tax rate of 19.4% and 8.9%. Income taxes amounted to $271,000 and $723,000 for the three and nine months ended March 31, 2023, respectively.

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Comparison of Operating Results for the Three and Nine Months Ended March 31, 2024 and 2023 (continued)

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

	Three Months Ended March 31,
	2024							2023
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	504,918	$	7,281		5.80	%	$	476,721	$	6,151		5.23	%
Investment securities		104,646		575		2.21			120,852		592		1.99
Interest-earning deposits		3,607		34		3.79			25,867		270		4.22
Total interest-earning assets		613,171		7,890		5.18	%		623,440		7,013		4.56	%
Non-interest-earning assets		40,349							43,545
Total assets	$	653,520						$	666,985
Interest-bearing liabilities:
Savings accounts	$	69,178		107		0.62	%	$	99,252		75		0.31	%
NOW accounts		68,170		98		0.58			70,064		44		0.26
Money market accounts		89,313		578		2.60			121,256		380		1.27
Certificate accounts		222,534		2,411		4.36			141,358		843		2.42
Total interest-bearing deposits		449,195		3,194		2.86			431,930		1,342		1.26
Other Borrowings		9,448		205		8.73			7,513		146		7.88
FHLB advances		5,956		87		5.87			4,313		52		4.89
Total interest-bearing liabilities	$	464,599		3,486		3.02	%	$	443,756		1,540		1.41	%
Non-interest-bearing liabilities:
Non-interest-bearing demand accounts		132,649							167,516
Other liabilities		3,911							3,031
Total liabilities		601,159							614,303
Total Stockholders’ Equity(1)		52,361							52,682
Total liabilities and stockholders’ equity	$	653,520						$	666,985
Net interest-earning assets	$	148,572						$	179,684
Net interest income; average interest rate spread(2)			$	4,404		2.16	%			$	5,473		3.15	%
Net interest margin(3)						2.89	%						3.56	%
Average interest-earning assets to average interest-bearing liabilities						131.98	%						140.49	%

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

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

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

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Comparison of Operating Results for the Three and Nine Months Ended March 31, 2024 and 2023 (continued)

	Nine Months Ended March 31,
	2024							2023
	Average Balance		Interest		Average Yield/ Rate			Average Balance		Interest		Average Yield/ Rate
	(Dollars In Thousands)
Interest-earning assets:
Loans receivable	$	503,664	$	21,952		5.80	%	$	423,451	$	16,586		5.22	%
Investment securities		109,255		1,957		2.38			111,448		1,577		1.88
Interest-earning deposits		5,060		135		3.55			23,950		719		4.00
Total interest-earning assets		617,979		24,044		5.18	%	$	558,849		18,882		4.50	%
Non-interest-earning assets		40,788							40,952
Total assets	$	658,767						$	599,801
Interest-bearing liabilities:
Savings accounts	$	73,676		257		0.46	%	$	111,948		239		0.28	%
NOW accounts		67,145		235		0.47			61,509		103		0.22
Money market accounts		98,021		1,800		2.44			100,919		509		0.67
Certificate accounts		209,985		6,396		4.05			108,211		1,536		1.89
Total interest-bearing deposits		448,827		8,688		2.58			382,587		2,387		0.83
Other bank borrowings		9,100		586		8.57			6,274		321		6.82
FHLB advances		4,151		180		5.77			1,969		72		4.87
Total interest-bearing liabilities	$	462,078		9,454		2.72	%	$	390,830		2,780		0.95	%
Non-interest-bearing liabilities:
Non-interest bearing demand accounts		140,869							157,356
Other liabilities		4,335							3,245
Total liabilities		607,282							551,431
Total Stockholders’ Equity(1)		51,485							48,370
Total liabilities and equity	$	658,767						$	599,801
Net interest-earning assets	$	155,901						$	168,019
Net interest income; average interest rate spread(2)			$	14,590		2.46	%			$	16,102		3.55	%
Net interest margin(3)						3.14	%						3.84	%
Average interest-earning assets to average interest-bearing liabilities						133.74	%						142.99	%

(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.

43

HOME FEDERAL BANCORP, INC. OF LOUISIANA

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 $23,000 at March 31, 2024.

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 March 31, 2024, The Bank had no advances from the Federal Home Loan Bank of Dallas and had $188.9 million in additional borrowing capacity.  Additionally, at March 31, 2024, 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 March 31, 2024. In addition, the Company had available an $11.0 million line of credit agreement at March 31, 2024 with First National Bankers Bank. At March 31, 2024, there was an $8.5 million balance in the credit line.

At March 31, 2024, the Bank had outstanding loan commitments of $41.0 million to originate loans and commitments under unused lines of credit of $14.6 million. At March 31, 2024, certificates of deposit scheduled to mature in less than one year totaled $185.1 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 can utilize available borrowing capacity, if necessary.

At March 31, 2024, the Bank exceeded each of its regulatory capital requirements with tangible equity, common equity Tier 1, core, and total risk-based capital ratios of 9.05 %, 12.97%, 9.05%, and 14.05%, respectively.

Off-Balance Sheet Arrangements

At March 31, 2024, 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.

44

HOME FEDERAL BANCORP, INC. OF LOUISIANA

Forward-Looking Statements

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

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.

45

HOME FEDERAL BANCORP, INC. OF LOUISIANA

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’s repurchases of its common stock made during the quarter ended March 31, 2024 are set forth in the table below, including stock-for-stock option exercises.

Period	Total Number of Shares Purchased (a)		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 (b)
January 1, 2024 – January 31, 2024		-	$	-		-		-
February 1, 2024 – February 29, 2024		415		13.30		-		-
March 1, 2024 – March 31, 2024		281		12.00		281		59,719
Total		553	$	12.78		281		59,719

Notes to this table:

(a) Includes 143 shares withheld on February 5, 2024, upon the vesting of share awards to cover payment of employee withholding tax. This withholding took place outside of a publicly announced repurchase plan.

(b) On March 7, 2024, the Company announced that its Board of Directors approved the twelfth stock repurchase program for the repurchase of up to 60,000 shares. The twelfth stock repurchase program does not have an expiration date.

ITEM 3. DEFAULTS UPON SENIOR SECURITIES

Not applicable.

ITEM 4. MINE SAFETY DISCLOSURES

Not applicable.

ITEM 5. OTHER INFORMATION

Not applicable.

46

HOME FEDERAL BANCORP, INC. OF LOUISIANA

ITEM 6.
EXHIBITS

No.	Description
10.1	Transition Agreement between Home Federal Bancorp, Inc. of Louisiana, Home Federal Bank and Glen W. Brown dated February 14, 2024(1)
10.2	Transition Agreement between Home Federal Bank and Adalberto Cantu, Jr. dated February 14, 2024(1)
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	Inline XBRL Taxonomy Extension Definitions Linkbase Document
104	Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101)

(1) Incorporated by reference from the Company’s Current Report on Form 8-K filed with the SEC on February 16, 2024 (File No. 001-35019).

47

SIGNATURES

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

	HOME FEDERAL BANCORP, INC. OF LOUISIANA
Date:   May 14, 2024	By:	/s/ Glen W. Brown
		Glen W. Brown
		Senior Vice President and Chief Financial Officer
		(Duly authorized officer and principal financial and
		accounting officer)

EX-31.1

EXHIBIT 31.1

CERTIFICATIONS

I, James R. Barlow, Chairman of the Board, President and Chief Executive Officer, certify that:

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

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

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

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

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

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

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

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

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

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

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

Date: May 14, 2024	/s/ James R. Barlow
	James R. Barlow
	Chairman of the Board, President and
	Chief Executive Officer
	(Principal Executive Officer)

EX-31.2

EXHIBIT 31.2

CERTIFICATIONS

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

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

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

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

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

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

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

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

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

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

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

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

Date: May 14, 2024	/s/ Glen W. Brown
	Glen W. Brown
	Senior Vice President and Chief Financial Officer
	(Principal Financial and Accounting Officer)

EX-32.0

EXHIBIT 32.0

SECTION 1350 CERTIFICATIONS

The undersigned executive officers of Home Federal Bancorp, Inc. of Louisiana (the “Registrant”) hereby certify that the Registrant's Form 10-Q for the quarter ended March 31, 2024 fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

Date:	May 14, 2024	/s/ James R. Barlow
		Name:	James R. Barlow
		Title:	Chairman of the Board, President and
			Chief Executive Officer
			(Principal Executive Officer)

Date:	May 14, 2024	/s/ Glen W. Brown
		Name:	Glen W. Brown
		Title:	Senior Vice President and Chief Financial Officer
			(Principal Financial and Accounting Officer)

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

XML

Document and Entity Information - shares	9 Months Ended
	Mar. 31, 2024	May 09, 2024
Cover [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2024
Current Fiscal Year End Date	--06-30
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q3
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		3,138,588

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
ASSETS
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $2,681 and $22,215 at March 31, 2024 and June 30, 2023, respectively)	$ 8,019	$ 24,765
Securities Available-for-Sale, at fair value (amortized cost March 31, 2024: $33,089; June 30, 2023: $42,910, respectively)	29,829	39,551
Securities Held-to-Maturity, at amortized cost (fair value March 31, 2024: $55,660; June 30, 2023: $59,678, respectively)	68,706	72,879
Other Securities	1,596	1,544
Loans Held-for-Sale	1,904	4
Loans Receivable, Net of Allowance for Credit Losses (March 31, 2024: $4,887; June 30, 2023: $5,173, respectively)	499,267	489,493
Accrued Interest Receivable	1,932	1,790
Premises and Equipment, Net	18,161	16,561
Bank Owned Life Insurance	6,782	6,700
Goodwill	2,990	2,990
Core Deposit Intangible	1,275	1,533
Deferred Tax Asset	1,273	1,313
Real Estate Owned	0	368
Other Assets	1,292	1,424
Total Assets	643,026	660,915
Deposits:
Non-interest bearing	132,577	145,553
Interest-bearing	446,304	451,808
Total Deposits	578,881	597,361
Advances from Borrowers for Taxes and Insurance	416	554
Other Borrowings	8,500	8,550
Other Accrued Expenses and Liabilities	2,679	3,908
Total Liabilities	590,476	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: 3,145,236 and 3,133,351 Shares Issued and Outstanding at March 31, 2024 and June 30, 2023, respectively	32	31
Additional Paid-in Capital	41,321	40,981
Unearned ESOP Stock	(437)	(523)
Retained Earnings	14,257	12,707
Accumulated Other Comprehensive Loss	(2,623)	(2,654)
Total Stockholders' Equity	52,550	50,542
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 643,026	$ 660,915

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
ASSETS
Interest-Bearing Deposits with Other Banks	$ 2,681	$ 22,215
Securities Available-for-Sale, Amortized cost	33,089	42,910
Securities Held-to-Maturity, Fair Value	55,660	59,678
Loans Receivable, Allowance for Credit Losses	$ 4,887	$ 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)	3,145,236	3,133,351
Common Stock, Outstanding (in shares)	3,145,236	3,133,351

XML

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024		Mar. 31, 2023
INTEREST INCOME
Loans, including fees	$ 7,281	$ 6,151	$ 21,952		$ 16,585
Investment securities	124	100	573		105
Mortgage-backed securities	451	492	1,384		1,472
Other interest-earning assets	34	270	135		720
Total interest income	7,890	7,013	24,044		18,882
INTEREST EXPENSE
Deposits	3,194	1,342	8,688		2,387
Federal Home Loan Bank borrowings	87	52	180		72
Other bank borrowings	205	146	586		321
Total interest expense	3,486	1,540	9,454		2,780
Net interest income	4,404	5,473	14,590		16,102
PROVISION FOR (RECOVERY OF) CREDIT LOSSES	11	150	(5)	[1]	718
Net interest income after provision for credit losses	4,393	5,323	14,595		15,384
NON-INTEREST INCOME
Gain on sale of loans	69	87	184		404
Gain (loss) on sale of real estate and fixed assets	0	4	(415)		4
Gain on sale of securities	26	0	26		0
Income on bank owned life insurance	28	25	82		77
Service charges on deposit accounts	363	380	1,151		1,074
Other income	20	12	50		35
Total non-interest income	506	508	1,078		1,594
NON-INTEREST EXPENSE
Compensation and benefits	2,453	2,319	7,137		6,694
Occupancy and equipment	533	541	1,625		1,540
Data processing	139	163	513		564
Audit and examination fees	83	82	456		243
Franchise and bank shares tax	168	145	488		386
Advertising	77	97	302		238
Professional fees	96	885	443		1,085
Loan and collection	31	34	123		148
Amortization core deposit intangible	79	71	258		71
Deposit insurance premium	90	49	289		150
Other expenses	242	112	794		690
Total non-interest expense	3,991	4,498	12,428		11,809
Income before income taxes	908	1,333	3,245		5,169
PROVISION FOR INCOME TAX EXPENSE	176	271	290		723
NET INCOME	$ 732	$ 1,062	$ 2,955		$ 4,446
EARNINGS PER SHARE
Basic (in dollars per share)	$ 0.24	$ 0.35	$ 0.97		$ 1.48
Diluted (in dollars per share)	$ 0.24	$ 0.34	$ 0.95		$ 1.41

[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		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract]
Net Income	$ 732	$ 1,062	$ 2,955	$ 4,446
Unrealized gains (losses) on securities available for sale:
Unrealized holding gains (losses) arising during the period	(608)	763	65	(348)
Less: reclassification adjustments for securities gains (losses) realized in net income	26	0	26	0
Income tax effect	133	(160)	(8)	73
Total Other Comprehensive Income (Loss), Net of Tax	(501)	603	31	(275)
Total Comprehensive Income	$ 231	$ 1,665	$ 2,986	$ 4,171

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		4,446		0		4,446
Changes in Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Tax Effects	0		0		0		0		(275)		(275)
Share Awards Earned	0		123		0		0		0		123
Stock Options Vested	0		80		0		0		0		80
Common Stock Issuance for Stock Option Exercises	(3)		220		0		0		0		217
ESOP Compensation Earned	0		226		87		0		0		313
Company Stock Purchased	0		0		0		(5,963)		0		(5,963)
Dividends Declared	0		0		0		(1,165)		0		(1,165)
Ending Balance at Mar. 31, 2023	31		40,794		(552)		11,824		(1,974)		50,123
Beginning Balance at Dec. 31, 2022	31		40,669		(581)		11,147		(2,577)		48,689
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	0		0		0		1,062		0		1,062
Changes in Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Tax Effects	0		0		0		0		603		603
Share Awards Earned	0		10		0		0		0		10
Stock Options Vested	0		26		0		0		0		26
Common Stock Issuance for Stock Option Exercises	0		19		0		0		0		19
ESOP Compensation Earned	0		70		29		0		0		99
Company Stock Purchased	0		0		0		(1)		0		(1)
Dividends Declared	0		0		0		(384)		0		(384)
Ending Balance at Mar. 31, 2023	31		40,794		(552)		11,824		(1,974)		50,123
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		2,955		0		2,955
Changes in Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Tax Effects	0		0		0		0		31		31
Share Awards Earned	0		118		0		0		0		118
Stock Options Vested	0		46		0		0		0		46
Common Stock Issuance for Stock Option Exercises	1		19		0		0		0		20
ESOP Compensation Earned	0		157		86		0		0		243
Company Stock Purchased	0		0		0		(39)		0		(39)
Dividends Declared	0		0		0		(1,177)		0		(1,177)
Ending Balance at Mar. 31, 2024	32		41,321		(437)		14,257		(2,623)		52,550
Beginning Balance at Dec. 31, 2023	31		41,224		(466)		13,927		(2,122)		52,594
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	0		0		0		732		0		732
Changes in Unrealized Gain (Loss) on Securities Available-for-Sale, Net of Tax Effects	0		0		0		0		(501)		(501)
Share Awards Earned	0		5		0		0		0		5
Stock Options Vested	0		23		0		0		0		23
Common Stock Issuance for Stock Option Exercises	1		19		0		0		0		20
ESOP Compensation Earned	0		50		29		0		0		79
Company Stock Purchased	0		0		0		(9)		0		(9)
Dividends Declared	0		0		0		(393)		0		(393)
Ending Balance at Mar. 31, 2024	$ 32		$ 41,321		$ (437)		$ 14,257		$ (2,623)		$ 52,550

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CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended		9 Months Ended			12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024		Mar. 31, 2023	Jun. 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Net Income	$ 732	$ 1,062	$ 2,955		$ 4,446
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Gain on Sale of Loans	(69)	(87)	(184)		(404)
Gain on Sale of Investments			(26)		0
Net Amortization and (Accretion) on Securities			(246)		21
Amortization of Deferred Loan Fees			(95)		(270)
Amortization of Purchased Loans			(666)		0
Provision for (Recovery of) Credit Losses	11	150	(5)	[1]	718	$ 868
Depreciation of Premises and Equipment			712		648
Loss on Sale of Real Estate			415		0
Gain on Sale of Fixed Assets			0		(4)
ESOP Compensation Expense			243		313
Stock Option Expense			46		80
Deferred Income Tax (Benefit) Expense			(28)		47
Share Awards Expense			118		92
Increase in Cash Surrender Value on Bank Owned Life Insurance			(82)		(77)
Amortization of Core Deposit Intangible	79	71	258		71
Loans Held-for-Sale - Originations and Purchases			(10,640)		(22,065)
Loans Held-for-Sale - Sale and Principal Repayments			8,924		25,287
Changes in Assets and Liabilities:
Accrued Interest Receivable			(142)		(496)
Other Operating Assets			132		(52)
Other Operating Liabilities			(1,229)		479
Net Cash Provided by Operating Activities			460		8,834
CASH FLOWS FROM INVESTING ACTIVITIES
Loan Originations and Purchases, Net of Principal Collections			(9,710)		(93,678)
Deferred Loan Fees Collected			48		135
Acquisition of Premises and Equipment			(2,312)		(997)
Net Cash Paid in Acquisition			0		(10,244)
Changes in Federal Home Loan Bank Stock			(52)		(983)
Activity in Available-for-Sale Securities:
Principal Payments on Securities			9,388		3,764
Purchase of Securities			(2,667)		(20,826)
Proceeds from Sales of Municipals			3,388		0
Activity in Held-to-Maturity Securities:
Principal Payments on Mortgage-Backed Securities			4,157		5,121
Proceeds from Sale of Other Real Estate Owned			456		0
Improvements to Other Real Estate Owned Prior to Disposition			(38)		0
Net Cash Provided by (Used in) Investing Activities			2,658		(117,708)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (Decrease)/ Increase in Deposits			(18,480)		82,383
Proceeds from Advances from Federal Home Loan Bank			792,700		163,001
Repayments of Advances from Federal Home Loan Bank			(792,700)		(153,833)
Dividends Paid			(1,177)		(1,165)
Company Stock Purchased			(39)		(5,963)
Net Decrease in Advances from Borrowers for Taxes and Insurance			(138)		(176)
Proceeds from Other Bank Borrowings			2,700		5,900
Repayments of Other Bank Borrowings			(2,750)		0
Proceeds from Stock Options Exercised			20		217
Net Cash Provided by Financing Activities			(19,864)		90,364
NET DECREASE IN CASH AND CASH EQUIVALENTS			(16,746)		(18,510)
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD			24,765		64,078	64,078
CASH AND CASH EQUIVALENTS - END OF PERIOD	$ 8,019	$ 45,568	8,019		45,568	$ 24,765
SUPPLEMENTAL CASH FLOW INFORMATION
Interest Paid on Deposits and Borrowed Funds			9,379		2,598
Income Taxes Paid			680		750
Market Value Adjustment for Gain (Loss) on Securities Available-for-Sale			65		(348)
Transfer from Loans to Other Real Estate Owned			465		0
Acquisitions:
Fair Value of Tangible Assets Acquired			0		82,889
Other Intangible Assets Acquired			0		1,510
Liabilities Assumed			0		77,145
Net Identifiable Assets Acquired Over Liabilities Assumed			$ 0		$ 7,254

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

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Summary of Accounting Policies

9 Months Ended

Mar. 31, 2024

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 and nine month periods ended March 31, 2024 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 March 31, 2024.  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 March 31, 2024, 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 debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums and accretion of discounts, using the interest method. Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.

Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities. Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale. Trading account and available-for-sale securities are carried at fair value. Unrealized holding gains and losses on trading securities are included in earnings, while net unrealized holding gains and losses on available-for-sale debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of March 31, 2024 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 in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors. Any impairment of available for sale investments 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 in such situation. Accrued interest 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 are reflected as other securities 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. These securities are periodically evaluated for impairment based on the ultimate recoverability of par value.

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 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. 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 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 and are still considered a pass.

• 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 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. 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 $0.97 and $0.95, respectively, for the nine months ended March 31, 2024 compared to basic and diluted earnings per share of $1.48 and $1.41, respectively, for the nine months ended March 31, 2023.  The Company’s basic and diluted earnings per share were $0.24 and $0.24, respectively, for the three months ended March 31, 2024, compared to basic and diluted earnings per share of $0.35 and $0.34, respectively, for the three months ended March 31, 2023.

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 nine months ended March 31, 2024, 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 nine months ended March 31, 2024 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 immaterial and recognized as a cumulative effect adjustment 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.

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Securities

9 Months Ended

Mar. 31, 2024

Securities [Abstract]

Securities

2. Securities

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

	March 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	6,929	$	1	$	775	$	6,155
FNMA Mortgage-Backed Certificates		18,073		-		1,706		16,367
GNMA Mortgage-Backed Certificates		4,223		3		852		3,374
Total Debt Securities		29,225		4		3,333		25,896
US Treasury Securities		3,499		67		-		3,566
Municipals		365		2		-		367
Total Securities Available-for-Sale	$	33,089	$	73	$	3,333	$	29,829
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	28,195	$	-	$	5,716	$	22,479
FHLMC Mortgage-Backed Certificates		38,608		-		7,207		31,401
FNMA Mortgage-Backed Certificates		611		-		65		546
Total Debt Securities		67,414		-		12,988		54,426
Municipals		1,292		-		58		1,234
Total Securities Held-to-Maturity	$	68,706	$	-	$	13,046	$	55,660

	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
Municipals		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
Total Securities Held-to-Maturity	$	72,879	$	-	$	13,201	$	59,678

The amortized cost and fair value of securities by contractual maturity at March 31, 2024 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		2,630		2,512		543		514
Over Ten Years		26,594		23,383		66,871		53,912
		29,225		25,896		67,414		54,426
US Treasury Securities
Within One Year or Less	$	3,000	$	3,063	$	-	$	-
One through Five Years		499		503		-		-
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		-		-
		3,499		3,566		-		-
Municipals
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		365		367		215		207
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		1,077		1,027
		365		367		1,292		1,234
Total	$	33,089	$	29,829	$	68,706	$	55,660

Securities available-for-sale totaling $2.7 million were purchased during the nine months ended March 31, 2024. Securities available-for-sale totaling $3.4 million were sold during the nine months ended March 31, 2024.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale and held-to-maturity at March 31, 2024 and June 30, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2024
	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	$	-	$	4	$	3,333	$	25,352
Total Securities Available-for-Sale	$	-	$	4	$	3,333	$	25,352
Securities Held-to-Maturity
Mortgage-Backed Securities	$	-	$	-	$	12,988	$	54,426
Municipals		-		-		58		1,234
Total Securities Held-to-Maturity	$	-	$	-	$	13,046	$	55,660

The number of debt securities in an unrealized loss position was 54 at March 31, 2024

	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
Securities Held-to-Maturity
Mortgage-Backed Securities	$	215	$	1,859	$	12,906	$	56,587
Municipals		-		-		80	$	1,231
Total Securities Held-to-Maturity	$	215	$	1,859	$	12,986	$	57,818

Management evaluates securities for impairment from credit losses at least quarterly, and more frequently when economic and market conditions warrant such evaluations. Consideration is given to numerous factors including, but not limited to, the extent to which the fair value is less than the amortized cost basis; adverse conditions causing changes in the financial condition of the issuer of the security or underlying loan guarantors; changes to the rating of the security by a rating agency; and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which may extend to maturity. If this evaluation indicates the existence of credit losses, the Company compares the present value of cash flows expected to be collected from the security with the amortized cost basis. If the present value of expected cash flows is less than the amortized cost basis, an allowance for credit losses is recorded, limited by the amount that the fair value of the security is less than its amortized cost.

The unrealized losses on the Company’s investment in mortgage-backed securities at March 31, 2024 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 March 31, 2024.

At March 31, 2024, securities with a carrying value of $2.6 million were pledged to secure public deposits and securities and mortgage loans with a carrying value of $188.9 million were pledged to secure FHLB advances.

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Loans Receivable

9 Months Ended

Mar. 31, 2024

Loans Receivable [Abstract]

Loans Receivable

3. Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2024			June 30, 2023
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	186,023		$	179,579
Commercial		150,130			148,441
Multi-Family Residential		40,603			28,849
Land		31,442			26,841
Construction		16,026			28,035
Equity and Second Mortgage		2,750			2,450
Equity Lines of Credit		18,919			23,817
Total Mortgage Loans		445,893			438,012
Commercial Loans		56,959			55,364
Consumer Loans
Loans on Savings Accounts		489			372
Other Consumer Loans		929			1,082
Total Consumer Other Loans		1,418			1,454
Total Loans		504,270			494,830
Less:  Allowance for Credit Losses		(4,887	)		(5,173	)
Unamortized Loan Fees		(116	)		(164	)
		(5,003	)		(5,337	)
Net Loans Receivable	$	499,267		$	489,493

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 and are still considered a pass.

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 March 31, 2024:

	Term Loans Amortized Cost by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	4,021	$	52,429	$	46,859	$	37,755	$	23,169	$	18,421	$	-	$	182,654
Special mention		-		1,316		-		363		-		463		-		2,142
Substandard		-		292		127		-		677		131		-		1,227
Doubtful		-		-		-		-		-		-		-	$	-
Total one-to-four family residential	$	4,021	$	54,037	$	46,986	$	38,118	$	23,846	$	19,015	$	-	$	186,023
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	136	$	484	$	-	$	620
Commercial
Risk rating
Pass	$	4,442	$	32,698	$	44,147	$	44,285	$	20,826	$	2,195	$	-	$	148,593
Special mention		-		1,366		111		60		-		-		-		1,537
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total commercial	$	4,442	$	34,064	$	44,258	$	44,345	$	20,826	$	2,195	$	-	$	150,130
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
Multi-family residential
Risk rating
Pass	$	2,000	$	4,590	$	13,550	$	2,241	$	7,038	$	11,184	$	-	$	40,603
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	2,000	$	4,590	$	13,550	$	2,241	$	7,038	$	11,184	$	-	$	40,603
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	2,331	$	12,972	$	7,472	$	6,257	$	1,661	$	369	$	-	$	31,062
Special mention		-		73		-		-		-		-		-		73
Substandard		-		-		307		-		-		-		-		307
Doubtful		-		-		-		-		-		-		-		-
Total land	$	2,331	$	13,045	$	7,779	$	6,257	$	1,661	$	369	$	-	$	31,442
Current period gross charge-offs	$	-	$	-	$	7	$	-	$	-	$	-	$	-	$	7
Construction
Risk rating
Pass	$	2,336	$	11,898	$	1,792	$	-	$	-	$	-	$	-	$	16,026
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	2,336	$	11,898	$	1,792	$	-	$	-	$	-	$	-	$	16,026
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	443	$	1,096	$	558	$	108	$	388	$	97	$	18,919	$	21,609
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		7		53		-		-		60
Doubtful		-		-		-		-		-		-		-		-
Total home equity and lines of credit	$	443	$	1,096	$	558	$	115	$	441	$	97	$	18,919	$	21,669
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk rating
Pass	$	6,974	$	25,024	$	9,466	$	6,343	$	4,830	$	2,010	$	-	$	54,647
Special mention		-		1,853		36		198		-		-		-		2,087
Substandard		-		78		107		40		-		-		-		225
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	6,974	$	26,955	$	9,609	$	6,581	$	4,830	$	2,010	$	-	$	56,959
Current period gross charge-offs	$	-	$	1	$	5	$	-	$	-	$	-	$	-	$	6
Consumer loans
Risk rating
Pass	$	132	$	629	$	246	$	26	$	299	$	68	$	-	$	1,400
Special mention		-		-		-		-		-		-		-		-
Substandard		-		18		-		-		-		-		-		18
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	132	$	647	$	246	$	26	$	299	$	68	$	-	$	1,418
Current period gross charge-offs	$	-	$	6	$	3	$	3	$	-	$	5	$	-	$	17
Total
Pass	$	22,679	$	141,336	$	124,090	$	97,015	$	58,211	$	34,344	$	18,919	$	496,594
Special mention		-		4,608		147		621		-		463		-		5,839
Substandard		-		388		541		47		730		131		-		1,837
Doubtful		-		-		-		-		-		-		-		-
Total	$	22,679	$	146,332	$	124,778	$	97,683	$	58,941	$	34,938	$	18,919	$	504,270
Current period gross charge-offs	$	-	$	7	$	15	$	3	$	136	$	489	$	-	$	650

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 March 31, 2024 and June 30, 2023:

March 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,130	$	212	$	1,749	$	4,091	$	181,932	$	186,023	$	930
Commercial		-		-		-		-		150,130		150,130		-
Multi-Family Residential		-		-		-		-		40,603		40,603		-
Land		-		-		308		308		31,134		31,442		-
Construction		-		-		-		-		16,026		16,026		-
Equity and Second Mortgage		-		10		16		26		2,724		2,750		-
Equity Lines of Credit		238		-		-		238		18,681		18,919		-
Commercial Loans		748		-		261		1,009		55,950		56,959		-
Consumer Loans		42		-		-		42		1,376		1,418		-
Total	$	3,158	$	222	$	2,334	$	5,714	$	498,556	$	504,270	$	930

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 nine months ended March 31, 2024 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 nine months ended March 31, 2024 and the year ended June 30, 2023 was approximately $79,000 and $182,000, respectively.

The change in the allowance for credit losses by loan portfolio class and recorded investment in loans for the nine months ended March 31, 2024 and year ended June 30, 2023 was as follows:

	Real Estate Loans
March 31, 2024	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		(620	)		-			-			(7	)		-			-			(6	)		(17	)		(650	)
Recoveries		3			-			-			1			-			6			-			-			10
Current Provision (Recovery)(1)		381			(413	)		53			68			(105	)		(60	)		42			29			(5	)
Ending Balances	$	2,352		$	1,141		$	142		$	251		$	105		$	227		$	648		$	21		$	4,887

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

	Real Estate Loans
June 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	$	1,367		$	1,295	$	357		$	305		$	282		$	197		$	646		$	2	$	4,451
Charge-Offs		(41	)		-		-			-			-			(26	)		(170	)		-		(237	)
Recoveries		4			-		-			-			-			5			82			-		91
Current Provision (Recovery)		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 Company held loans that were individually evaluated for credit losses at December 31, 2023 and March 31, 2024 for which the repayment, on the basis of our assessment at the reporting date, is expected to be provided substantially through the operation or sale of the collateral and the borrower is experiencing financial difficulty.  The ACL for these collateral-dependent loans is primarily based on the fair value of the underlying collateral at the reporting date.  The following describes the types of collateral that secure collateral dependent loans:

• One-to four-family first mortgages are primarily secured by first liens on residential real estate.

• Commercial real estate loans are primarily secured by office and industrial buildings, warehouses, retail shopping facilities and various special purpose properties, including self-storage facilities, hotels and restaurants.

• Multi-family loans are primarily secured by residential property that include five or more housing units.

• Construction and land loans are primarily secured by residential and commercial properties, which are under construction and/or redevelopment, and by raw land.

• Home equity loans and lines are primarily secured by first and junior liens on residential real estate.

• Commercial and industrial loans considered collateral dependent are primarily secured by accounts receivable, inventory and equipment.

• Consumer loans considered collateral dependent are primarily secured by titled vehicles.

The following tables present loans individually evaluated for impairment, segregated by class of loans, as of March 31, 2024 and impaired loans at June 30, 2023:

March 31, 2024	Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,704	$	116
Commercial		128		5
Land		389		2
Home Equity Loans and Lines of Credit		153		3
Commercial Loans		155		77
Consumer Loans		78		4
Total	$	3,607	$	207

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
Equity and Second Mortgage		-		-		-		-		-		63
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 March 31, 2024, 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 March 31, 2024, there were no loans whose terms were modified for borrowers who may be experiencing financial difficulties.

At March 31, 2024 and June 30, 2023, accrued interest receivable on loans was $1.7 million and included within accrued interest receivable on the consolidated balance sheets.

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Deposits

9 Months Ended

Mar. 31, 2024

Deposits [Abstract]

Deposits

4. Deposits

Deposits at March 31, 2024 and June 30, 2023 consist of the following classifications:

	March 31, 2024		June 30, 2023
	(In Thousands)
Non-Interest Bearing	$	132,577	$	145,553
NOW Accounts		65,372		65,335
Money Markets		80,338		114,195
Passbook Savings		71,792		81,895
		350,079		406,978
Certificates of Deposit		228,802		190,383
Total Deposits	$	578,881	$	597,361

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Earnings Per Share

9 Months Ended

Mar. 31, 2024

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 and nine months ended March 31, 2024 and 2023 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(In Thousands, Except Per Share Data)
Net income	$	732	$	1,062	$	2,955	$	4,446
Weighted average shares outstanding – basic		3,047		3,006		3,040		3,022
Effect of dilutive common stock equivalents		44		126		56		142
Adjusted weighted average shares outstanding – diluted		3,091		3,132		3,096		3,164
Basic earnings per share	$	0.24	$	0.35	$	0.97	$	1.48
Diluted earnings per share	$	0.24	$	0.34	$	0.95	$	1.41

For the three months ended March 31, 2024 and 2023, there were outstanding options to purchase 364,037 and 384,789 shares, respectively, at a weighted average exercise price of $11.66 and $11.81 per share, respectively, and for the nine months ended March 31, 2024 and 2023, there were outstanding options to purchase 364,625 and 387,701 shares, respectively, at a weighted average exercise price of $11.66 and $11.81 per share, respectively.  For the quarter ended March 31, 2024 and 2023, 43,676 options and 126,427 options, respectively, were included in the computation of diluted earnings per share. For the nine month period ended March 31, 2024 and 2023, 55,910 options and 142,259 options, respectively, were included in the computation of diluted earnings per share.

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2024			2023			2024			2023
	(In Thousands)
Average common shares issued		6,124			6,124			6,124			6,124
Average unearned ESOP shares		(94	)		(113	)		(96	)		(119	)
Average Company stock purchased		(2,983	)		(3,005	)		(2,988	)		(2,983	)
Weighted average shares outstanding		3,047			3,006			3,040			3,022

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Stock-Based Compensation

9 Months Ended

Mar. 31, 2024

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 March 31, 2024 remain in effect for the remainder of their original ten year terms and expire July 31, 2024.

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 35,350 outstanding options as of March 31, 2024 remain in effect for the remainder of their original ten year term and expire July 31, 2024.

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. The 2014 Stock Incentive Plan will terminate on August 13, 2024.

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 March 31, 2024, there are 1,600 plan share awards and 24,600 stock options available for future grants under the Stock Incentive Plans.

For the three months ended March 31, 2024 and 2023, compensation expense charged to operations under the Stock Incentive Plans was $5,000 and $81,000, respectively. Compensation expense pertaining to the Stock Incentive Plans was $118,000 and $173,000, respectively, for the nine months ended March 31, 2024 and 2023.

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Related Party Transactions

9 Months Ended

Mar. 31, 2024

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 $4.3 million and $4.4 million at March 31, 2024 and June 30, 2023, respectively.

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Fair Value Disclosures

9 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Fair Value Disclosures

8. Fair Value Disclosures

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

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

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

Cash and Cash Equivalents

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

Investment Securities

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

Mortgage Loans Held-for-Sale

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

Loans Receivable

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

Deposit Liabilities

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

Advances from Federal Home Loan Bank

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

Off-Balance Sheet Credit-Related Instruments

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

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

At March 31, 2024 and June 30, 2023, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2024				June 30, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,019	$	8,019	$	24,765	$	24,765
Securities Available-for-Sale		29,829		29,829		39,551		39,551
Securities to be Held-to-Maturity		70,302		57,256		74,423		61,222
Loans Held-for-Sale		1,904		1,904		4		4
Loans Receivable		499,267		461,572		489,493		444,117
Financial Liabilities
Deposits	$	578,881	$	576,895	$	597,361	$	481,055
Other Borrowings		8,500		8,500		8,550		8,550
Off-Balance Sheet Items
Mortgage Loan Commitments	$	14,555	$	14,555	$	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 nine months ended March 31, 2024.

Fair values of assets and liabilities measured on a recurring basis at March 31, 2024 and June 30, 2023 are as follows:

	Fair Value Measurements
March 31, 2024	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	6,155	$	-	$	6,155
FNMA		-		16,367		-		16,367
GNMA		-		3,374		-		3,374
US Treasury Notes		-		3,566		-		3,566
Municipal Bonds		-		367		-		367
Total	$	-	$	29,829	$	-	$	29,829

	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 March 31, 2024 and June 30, 2023 are as follows:

	Fair Value Measurements
March 31, 2024	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	2,747	$	2,747
Total	$	-	$	-	$	2,747	$	2,747

	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

9 Months Ended

Mar. 31, 2024

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 March 31, 2024 and June 30, 2023, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows:

(In Thousands)		March 31, 2024		June 30, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	818	$	829
Total Lease Right-of-Use Assets		$	818	$	829
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	863	$	866
Total Lease Liabilities		$	863	$	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.

	March 31, 2024			June 30, 2023
Weighted-average remaining lease term
Operating leases	34.7 years			35.4 years
Weighted-average discount rate
Operating leases		3.00	%		3.00	%

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Insider Trading Arrangements	3 Months Ended
	Mar. 31, 2024
Insider Trading Arrangements [Line Items]
Rule 10b5-1 Arrangement Adopted	false
Non-Rule 10b5-1 Arrangement Adopted	false
Rule 10b5-1 Arrangement Terminated	false
Non-Rule 10b5-1 Arrangement Terminated	false

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Summary of Accounting Policies (Policies)

9 Months Ended

Mar. 31, 2024

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 and nine month periods ended March 31, 2024 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 March 31, 2024.  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 March 31, 2024, 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 debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums and accretion of discounts, using the interest method. Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.

Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities. Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale. Trading account and available-for-sale securities are carried at fair value. Unrealized holding gains and losses on trading securities are included in earnings, while net unrealized holding gains and losses on available-for-sale debt securities are excluded from earnings and reported in other comprehensive income.

The Company held no trading securities as of March 31, 2024 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 in the fair value below amortized cost basis (impairment) is due to credit or non-credit related factors. Any impairment of available for sale investments 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 in such situation. Accrued interest 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 are reflected as other securities 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. These securities are periodically evaluated for impairment based on the ultimate recoverability of par value.

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 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. 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 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 and are still considered a pass.

• 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 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. 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 $0.97 and $0.95, respectively, for the nine months ended March 31, 2024 compared to basic and diluted earnings per share of $1.48 and $1.41, respectively, for the nine months ended March 31, 2023.  The Company’s basic and diluted earnings per share were $0.24 and $0.24, respectively, for the three months ended March 31, 2024, compared to basic and diluted earnings per share of $0.35 and $0.34, respectively, for the three months ended March 31, 2023.

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 nine months ended March 31, 2024, 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 nine months ended March 31, 2024 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 immaterial and recognized as a cumulative effect adjustment 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.

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Summary of Accounting Policies (Tables)

9 Months Ended

Mar. 31, 2024

Summary of Accounting Policies [Abstract]

Estimated Useful Lives

Estimated useful lives are as follows:

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

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Securities (Tables)

9 Months Ended

Mar. 31, 2024

Securities [Abstract]

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

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

	March 31, 2024
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Securities Available-for-Sale	Cost		Gains		Losses		Value
			(In Thousands)
Debt Securities
FHLMC Mortgage-Backed Certificates	$	6,929	$	1	$	775	$	6,155
FNMA Mortgage-Backed Certificates		18,073		-		1,706		16,367
GNMA Mortgage-Backed Certificates		4,223		3		852		3,374
Total Debt Securities		29,225		4		3,333		25,896
US Treasury Securities		3,499		67		-		3,566
Municipals		365		2		-		367
Total Securities Available-for-Sale	$	33,089	$	73	$	3,333	$	29,829
Securities Held-to-Maturity
Debt Securities
GNMA Mortgage-Backed Certificates	$	28,195	$	-	$	5,716	$	22,479
FHLMC Mortgage-Backed Certificates		38,608		-		7,207		31,401
FNMA Mortgage-Backed Certificates		611		-		65		546
Total Debt Securities		67,414		-		12,988		54,426
Municipals		1,292		-		58		1,234
Total Securities Held-to-Maturity	$	68,706	$	-	$	13,046	$	55,660

	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
Municipals		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
Total Securities Held-to-Maturity	$	72,879	$	-	$	13,201	$	59,678

Amortized Cost and Fair Value of Securities by Contractual Maturity

The amortized cost and fair value of securities by contractual maturity at March 31, 2024 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		2,630		2,512		543		514
Over Ten Years		26,594		23,383		66,871		53,912
		29,225		25,896		67,414		54,426
US Treasury Securities
Within One Year or Less	$	3,000	$	3,063	$	-	$	-
One through Five Years		499		503		-		-
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		-		-
		3,499		3,566		-		-
Municipals
Within One Year or Less	$	-	$	-	$	-	$	-
One through Five Years		365		367		215		207
After Five through Ten Years		-		-		-		-
Over Ten Years		-		-		1,077		1,027
		365		367		1,292		1,234
Total	$	33,089	$	29,829	$	68,706	$	55,660

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 March 31, 2024 and June 30, 2023 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

	March 31, 2024
	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	$	-	$	4	$	3,333	$	25,352
Total Securities Available-for-Sale	$	-	$	4	$	3,333	$	25,352
Securities Held-to-Maturity
Mortgage-Backed Securities	$	-	$	-	$	12,988	$	54,426
Municipals		-		-		58		1,234
Total Securities Held-to-Maturity	$	-	$	-	$	13,046	$	55,660

	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
Securities Held-to-Maturity
Mortgage-Backed Securities	$	215	$	1,859	$	12,906	$	56,587
Municipals		-		-		80	$	1,231
Total Securities Held-to-Maturity	$	215	$	1,859	$	12,986	$	57,818

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Loans Receivable (Tables)

9 Months Ended

Mar. 31, 2024

Loans Receivable [Abstract]

Loans Receivable

Loans receivable are summarized as follows:

	March 31, 2024			June 30, 2023
	(In Thousands)
Loans Secured by Mortgages on Real Estate
One-to-Four Family Residential	$	186,023		$	179,579
Commercial		150,130			148,441
Multi-Family Residential		40,603			28,849
Land		31,442			26,841
Construction		16,026			28,035
Equity and Second Mortgage		2,750			2,450
Equity Lines of Credit		18,919			23,817
Total Mortgage Loans		445,893			438,012
Commercial Loans		56,959			55,364
Consumer Loans
Loans on Savings Accounts		489			372
Other Consumer Loans		929			1,082
Total Consumer Other Loans		1,418			1,454
Total Loans		504,270			494,830
Less:  Allowance for Credit Losses		(4,887	)		(5,173	)
Unamortized Loan Fees		(116	)		(164	)
		(5,003	)		(5,337	)
Net Loans Receivable	$	499,267		$	489,493

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 March 31, 2024:

	Term Loans Amortized Cost by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
One-to-four family residential
Risk rating
Pass	$	4,021	$	52,429	$	46,859	$	37,755	$	23,169	$	18,421	$	-	$	182,654
Special mention		-		1,316		-		363		-		463		-		2,142
Substandard		-		292		127		-		677		131		-		1,227
Doubtful		-		-		-		-		-		-		-	$	-
Total one-to-four family residential	$	4,021	$	54,037	$	46,986	$	38,118	$	23,846	$	19,015	$	-	$	186,023
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	136	$	484	$	-	$	620
Commercial
Risk rating
Pass	$	4,442	$	32,698	$	44,147	$	44,285	$	20,826	$	2,195	$	-	$	148,593
Special mention		-		1,366		111		60		-		-		-		1,537
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total commercial	$	4,442	$	34,064	$	44,258	$	44,345	$	20,826	$	2,195	$	-	$	150,130
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-

	Term Loans Amortized Cost by Origination Year
As of March 31, 2024	2024		2023		2022		2021		2020		Prior		Revolving Lines		Total
	(In Thousands)
Multi-family residential
Risk rating
Pass	$	2,000	$	4,590	$	13,550	$	2,241	$	7,038	$	11,184	$	-	$	40,603
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total multi-family residential	$	2,000	$	4,590	$	13,550	$	2,241	$	7,038	$	11,184	$	-	$	40,603
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Land
Risk rating
Pass	$	2,331	$	12,972	$	7,472	$	6,257	$	1,661	$	369	$	-	$	31,062
Special mention		-		73		-		-		-		-		-		73
Substandard		-		-		307		-		-		-		-		307
Doubtful		-		-		-		-		-		-		-		-
Total land	$	2,331	$	13,045	$	7,779	$	6,257	$	1,661	$	369	$	-	$	31,442
Current period gross charge-offs	$	-	$	-	$	7	$	-	$	-	$	-	$	-	$	7
Construction
Risk rating
Pass	$	2,336	$	11,898	$	1,792	$	-	$	-	$	-	$	-	$	16,026
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		-		-		-		-		-
Doubtful		-		-		-		-		-		-		-		-
Total construction	$	2,336	$	11,898	$	1,792	$	-	$	-	$	-	$	-	$	16,026
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Equity loans and lines of credit
Risk rating
Pass	$	443	$	1,096	$	558	$	108	$	388	$	97	$	18,919	$	21,609
Special mention		-		-		-		-		-		-		-		-
Substandard		-		-		-		7		53		-		-		60
Doubtful		-		-		-		-		-		-		-		-
Total home equity and lines of credit	$	443	$	1,096	$	558	$	115	$	441	$	97	$	18,919	$	21,669
Current period gross charge-offs	$	-	$	-	$	-	$	-	$	-	$	-	$	-	$	-
Commercial loans
Risk rating
Pass	$	6,974	$	25,024	$	9,466	$	6,343	$	4,830	$	2,010	$	-	$	54,647
Special mention		-		1,853		36		198		-		-		-		2,087
Substandard		-		78		107		40		-		-		-		225
Doubtful		-		-		-		-		-		-		-		-
Total commercial loans	$	6,974	$	26,955	$	9,609	$	6,581	$	4,830	$	2,010	$	-	$	56,959
Current period gross charge-offs	$	-	$	1	$	5	$	-	$	-	$	-	$	-	$	6
Consumer loans
Risk rating
Pass	$	132	$	629	$	246	$	26	$	299	$	68	$	-	$	1,400
Special mention		-		-		-		-		-		-		-		-
Substandard		-		18		-		-		-		-		-		18
Doubtful		-		-		-		-		-		-		-		-
Total consumer loans	$	132	$	647	$	246	$	26	$	299	$	68	$	-	$	1,418
Current period gross charge-offs	$	-	$	6	$	3	$	3	$	-	$	5	$	-	$	17
Total
Pass	$	22,679	$	141,336	$	124,090	$	97,015	$	58,211	$	34,344	$	18,919	$	496,594
Special mention		-		4,608		147		621		-		463		-		5,839
Substandard		-		388		541		47		730		131		-		1,837
Doubtful		-		-		-		-		-		-		-		-
Total	$	22,679	$	146,332	$	124,778	$	97,683	$	58,941	$	34,938	$	18,919	$	504,270
Current period gross charge-offs	$	-	$	7	$	15	$	3	$	136	$	489	$	-	$	650

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 March 31, 2024 and June 30, 2023:

March 31, 2024	30-59 Days Past Due		60-89 Days Past Due		90 Days or More		Total Past Due		Current		Total Loans Receivable		Recorded Investment > 90 Days and Accruing
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,130	$	212	$	1,749	$	4,091	$	181,932	$	186,023	$	930
Commercial		-		-		-		-		150,130		150,130		-
Multi-Family Residential		-		-		-		-		40,603		40,603		-
Land		-		-		308		308		31,134		31,442		-
Construction		-		-		-		-		16,026		16,026		-
Equity and Second Mortgage		-		10		16		26		2,724		2,750		-
Equity Lines of Credit		238		-		-		238		18,681		18,919		-
Commercial Loans		748		-		261		1,009		55,950		56,959		-
Consumer Loans		42		-		-		42		1,376		1,418		-
Total	$	3,158	$	222	$	2,334	$	5,714	$	498,556	$	504,270	$	930

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 nine months ended March 31, 2024 and year ended June 30, 2023 was as follows:

	Real Estate Loans
March 31, 2024	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		(620	)		-			-			(7	)		-			-			(6	)		(17	)		(650	)
Recoveries		3			-			-			1			-			6			-			-			10
Current Provision (Recovery)(1)		381			(413	)		53			68			(105	)		(60	)		42			29			(5	)
Ending Balances	$	2,352		$	1,141		$	142		$	251		$	105		$	227		$	648		$	21		$	4,887

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

	Real Estate Loans
June 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	$	1,367		$	1,295	$	357		$	305		$	282		$	197		$	646		$	2	$	4,451
Charge-Offs		(41	)		-		-			-			-			(26	)		(170	)		-		(237	)
Recoveries		4			-		-			-			-			5			82			-		91
Current Provision (Recovery)		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 March 31, 2024 and impaired loans at June 30, 2023:

March 31, 2024	Loan Balance		Specific Allocations
	(In Thousands)
Real Estate Loans:
One-to-Four Family Residential	$	2,704	$	116
Commercial		128		5
Land		389		2
Home Equity Loans and Lines of Credit		153		3
Commercial Loans		155		77
Consumer Loans		78		4
Total	$	3,607	$	207

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
Equity and Second Mortgage		-		-		-		-		-		63
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)

9 Months Ended

Mar. 31, 2024

Deposits [Abstract]

Deposits

Deposits at March 31, 2024 and June 30, 2023 consist of the following classifications:

	March 31, 2024		June 30, 2023
	(In Thousands)
Non-Interest Bearing	$	132,577	$	145,553
NOW Accounts		65,372		65,335
Money Markets		80,338		114,195
Passbook Savings		71,792		81,895
		350,079		406,978
Certificates of Deposit		228,802		190,383
Total Deposits	$	578,881	$	597,361

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Earnings Per Share (Tables)

9 Months Ended

Mar. 31, 2024

Earnings Per Share [Abstract]

Calculation of Earnings per Share

Earnings per share for the three and nine months ended March 31, 2024 and 2023 were calculated as follows:

	Three Months Ended March 31,				Nine Months Ended March 31,
	2024		2023		2024		2023
	(In Thousands, Except Per Share Data)
Net income	$	732	$	1,062	$	2,955	$	4,446
Weighted average shares outstanding – basic		3,047		3,006		3,040		3,022
Effect of dilutive common stock equivalents		44		126		56		142
Adjusted weighted average shares outstanding – diluted		3,091		3,132		3,096		3,164
Basic earnings per share	$	0.24	$	0.35	$	0.97	$	1.48
Diluted earnings per share	$	0.24	$	0.34	$	0.95	$	1.41

Components of Weighted Average Outstanding Shares

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

	Three Months Ended March 31,						Nine Months Ended March 31,
	2024			2023			2024			2023
	(In Thousands)
Average common shares issued		6,124			6,124			6,124			6,124
Average unearned ESOP shares		(94	)		(113	)		(96	)		(119	)
Average Company stock purchased		(2,983	)		(3,005	)		(2,988	)		(2,983	)
Weighted average shares outstanding		3,047			3,006			3,040			3,022

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Fair Value Disclosures (Tables)

9 Months Ended

Mar. 31, 2024

Fair Value Disclosures [Abstract]

Carrying Amount and Estimated Fair Values of Financial Instruments

At March 31, 2024 and June 30, 2023, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:

	March 31, 2024				June 30, 2023
	Carrying		Estimated		Carrying		Estimated
	Value		Fair Value		Value		Fair Value
	(In Thousands)
Financial Assets
Cash and Cash Equivalents	$	8,019	$	8,019	$	24,765	$	24,765
Securities Available-for-Sale		29,829		29,829		39,551		39,551
Securities to be Held-to-Maturity		70,302		57,256		74,423		61,222
Loans Held-for-Sale		1,904		1,904		4		4
Loans Receivable		499,267		461,572		489,493		444,117
Financial Liabilities
Deposits	$	578,881	$	576,895	$	597,361	$	481,055
Other Borrowings		8,500		8,500		8,550		8,550
Off-Balance Sheet Items
Mortgage Loan Commitments	$	14,555	$	14,555	$	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 March 31, 2024 and June 30, 2023 are as follows:

	Fair Value Measurements
March 31, 2024	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Available-for-Sale
Debt Securities
FHLMC	$	-	$	6,155	$	-	$	6,155
FNMA		-		16,367		-		16,367
GNMA		-		3,374		-		3,374
US Treasury Notes		-		3,566		-		3,566
Municipal Bonds		-		367		-		367
Total	$	-	$	29,829	$	-	$	29,829

	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 March 31, 2024 and June 30, 2023 are as follows:

	Fair Value Measurements
March 31, 2024	(Level 1)		(Level 2)		(Level 3)		Total
	(In Thousands)
Assets:
Impaired Loans,
Net of Allowance	$	-	$	-	$	2,747	$	2,747
Total	$	-	$	-	$	2,747	$	2,747

	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)

9 Months Ended

Mar. 31, 2024

Leases [Abstract]

Carrying Amounts of ROU Assets and Corresponding Lease Liabilities

At March 31, 2024 and June 30, 2023, the carrying amounts of the ROU assets and corresponding lease liabilities were as follows:

(In Thousands)		March 31, 2024		June 30, 2023
Lease Right-of-Use Assets	Classification
Operating lease right-of-use assets	Other Assets	$	818	$	829
Total Lease Right-of-Use Assets		$	818	$	829
Lease Liabilities
Operating lease liabilities	Other Accrued Expenses and Liabilities	$	863	$	866
Total Lease Liabilities		$	863	$	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.

	March 31, 2024			June 30, 2023
Weighted-average remaining lease term
Operating leases	34.7 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		9 Months Ended
	Mar. 31, 2024 USD ($) $ / shares	Mar. 31, 2023 $ / shares	Mar. 31, 2024 USD ($) Category Subsidiary Office $ / shares	Mar. 31, 2023 $ / shares	Jun. 30, 2023 USD ($)
Securities [Abstract]
Trading securities | $	$ 0		$ 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)	$ 0.24	$ 0.35	$ 0.97	$ 1.48
Diluted earnings per share (in dollars per share)	$ 0.24	$ 0.34	$ 0.95	$ 1.41
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		10 years
Buildings and Improvements [Member] | Maximum [Member]
Premises and Equipment [Abstract]
Estimated useful lives	40 years		40 years
Furniture and Equipment [Member] | Minimum [Member]
Premises and Equipment [Abstract]
Estimated useful lives	3 years		3 years
Furniture and Equipment [Member] | Maximum [Member]
Premises and Equipment [Abstract]
Estimated useful lives	10 years		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

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Securities, Available-for-sale Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 33,089	$ 42,910
Gross Unrealized Gains	73	80
Gross Unrealized Losses	3,333	3,439
Fair Value	29,829	39,551
Debt Securities [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	29,225	32,063
Gross Unrealized Gains	4	1
Gross Unrealized Losses	3,333	3,430
Fair Value	25,896	28,634
FHLMC Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	6,929	12,167
Gross Unrealized Gains	1	1
Gross Unrealized Losses	775	1,012
Fair Value	6,155	11,156
FNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	18,073	15,318
Gross Unrealized Gains	0	0
Gross Unrealized Losses	1,706	1,604
Fair Value	16,367	13,714
GNMA Mortgage-Backed Certificates [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	4,223	4,578
Gross Unrealized Gains	3	0
Gross Unrealized Losses	852	814
Fair Value	3,374	3,764
US Treasury Securities [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	3,499	9,779
Gross Unrealized Gains	67	68
Gross Unrealized Losses	0	6
Fair Value	3,566	9,841
Municipals [Member]
Available-for-sale Debt Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	365	1,068
Gross Unrealized Gains	2	11
Gross Unrealized Losses	0	3
Fair Value	$ 367	$ 1,076

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Securities, Held-to-maturity Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	$ 68,706	$ 72,879
Gross Unrealized Gains	0	0
Gross Unrealized Losses	13,046	13,201
Fair Value	55,660	59,678
Debt Securities [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	67,414	71,568
Gross Unrealized Gains	0	0
Gross Unrealized Losses	12,988	13,121
Fair Value	54,426	58,447
GNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	28,195	623
Gross Unrealized Gains	0	0
Gross Unrealized Losses	5,716	63
Fair Value	22,479	560
FHLMC Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	38,608	29,921
Gross Unrealized Gains	0	0
Gross Unrealized Losses	7,207	5,781
Fair Value	31,401	24,140
FNMA Mortgage-Backed Certificates [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	611	41,024
Gross Unrealized Gains	0	0
Gross Unrealized Losses	65	7,277
Fair Value	546	33,747
Municipals [Member]
Held-to-Maturity Securities, Fair Value to Amortized Cost Basis [Abstract]
Amortized Cost	1,292	1,311
Gross Unrealized Gains	0	0
Gross Unrealized Losses	58	80
Fair Value	$ 1,234	$ 1,231

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Securities, Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Available-for-Sale, Amortized Cost [Abstract]
Amortized Cost	$ 33,089	$ 42,910
Available-for-Sale, Fair Value [Abstract]
Fair Value	29,829	39,551
Held-to-Maturity, Amortized Cost [Abstract]
Amortized Cost	68,706	72,879
Held-to-Maturity, Fair Value [Abstract]
Fair Value	55,660	59,678
Cost of available-for-sale securities purchased	2,700
Securities sold	3,400
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	2,630
Over Ten Years	26,594
With Single Maturity Date	29,225
Amortized Cost	29,225	32,063
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	1
After Five through Ten Years	2,512
Over Ten Years	23,383
With Single Maturity Date	25,896
Fair Value	25,896	28,634
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	543
Over Ten Years	66,871
With Single Maturity Date	67,414
Amortized Cost	67,414	71,568
Held-to-Maturity, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	0
After Five through Ten Years	514
Over Ten Years	53,912
With Single Maturity Date	54,426
Fair Value	54,426	58,447
US Treasury Securities [Member]
Available-for-Sale, Amortized Cost [Abstract]
Within One Year or Less	3,000
One through Five Years	499
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	3,499
Amortized Cost	3,499	9,779
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	3,063
One through Five Years	503
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	3,566
Fair Value	3,566	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	0
With Single Maturity Date	365
Amortized Cost	365	1,068
Available-for-Sale, Fair Value [Abstract]
Within One Year or Less	0
One through Five Years	367
After Five through Ten Years	0
Over Ten Years	0
With Single Maturity Date	367
Fair Value	367	1,076
Held-to-Maturity, Amortized Cost [Abstract]
Within One Year or Less	0
One through Five Years	215
After Five through Ten Years	0
Over Ten Years	1,077
With Single Maturity Date	1,292
Amortized Cost	1,292	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	1,027
With Single Maturity Date	1,234
Fair Value	$ 1,234	$ 1,231

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Securities, Securities with Gross Unrealized Losses (Details) $ in Thousands	Mar. 31, 2024 USD ($) Security	Jun. 30, 2023 USD ($)
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	$ 0	$ 629
Over Twelve Months	3,333	2,811
Securities Available-for-sale Securities, Fair Value [Abstract]
Less Than Twelve Months	4	11,856
Over Twelve Months	25,352	18,892
Securities Held-to-maturity, Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	215
Over Twelve Months	13,046	12,986
Securities Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months	0	1,859
Over Twelve Months	$ 55,660	57,818
Number of debt securities in an unrealized loss position | Security	54
Asset Pledged as Collateral [Member] | Public Deposits [Member]
Securities Pledged [Abstract]
Securities	$ 2,600
Asset Pledged as Collateral [Member] | FHLB Advances [Member]
Securities Pledged [Abstract]
Securities and mortgage loans	188,900
Mortgage-Backed Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	618
Over Twelve Months	3,333	2,811
Securities Available-for-sale Securities, Fair Value [Abstract]
Less Than Twelve Months	4	9,109
Over Twelve Months	25,352	18,892
Securities Held-to-maturity, Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	215
Over Twelve Months	12,988	12,906
Securities Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months	0	1,859
Over Twelve Months	54,426	56,587
Municipals [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months		3
Over Twelve Months		0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less Than Twelve Months		561
Over Twelve Months		0
Securities Held-to-maturity, Unrealized Loss Position, Gross Unrealized Losses [Abstract]
Less Than Twelve Months	0	0
Over Twelve Months	58	80
Securities Held-to-maturity, Continuous Unrealized Loss Position, Fair Value [Abstract]
Less Than Twelve Months	0	0
Over Twelve Months	$ 1,234	1,231
US Treasury Securities [Member]
Securities Available-for-sale Securities, Gross Unrealized Losses [Abstract]
Less Than Twelve Months		8
Over Twelve Months		0
Securities Available-for-sale Securities, Fair Value [Abstract]
Less Than Twelve Months		2,186
Over Twelve Months		$ 0

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Loans Receivable, Components of Loans Receivable (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023	Jun. 30, 2022
Loans receivable [Abstract]
Total Loans	$ 504,270	$ 494,830
Less: Allowance for Credit Losses	(4,887)	(5,173)	$ (4,451)
Unamortized Loan Fees	(116)	(164)
Allowance for Credit Losses and Unamortized Loan Fees	(5,003)	(5,337)
Net Loans Receivable	499,267	489,493
Loans Secured by Mortgages on Real Estate [Member]
Loans receivable [Abstract]
Total Loans	445,893	438,012
Loans Secured by Mortgages on Real Estate [Member] | One-to-Four-Family Residential [Member]
Loans receivable [Abstract]
Total Loans	186,023	179,579
Less: Allowance for Credit Losses	(2,352)	(1,900)	(1,367)
Loans Secured by Mortgages on Real Estate [Member] | Commercial [Member]
Loans receivable [Abstract]
Total Loans	150,130	148,441
Less: Allowance for Credit Losses	(1,141)	(1,673)	(1,295)
Loans Secured by Mortgages on Real Estate [Member] | Multi-Family Residential [Member]
Loans receivable [Abstract]
Total Loans	40,603	28,849
Less: Allowance for Credit Losses	(142)	(228)	(357)
Loans Secured by Mortgages on Real Estate [Member] | Land [Member]
Loans receivable [Abstract]
Total Loans	31,442	26,841
Less: Allowance for Credit Losses	(251)	(274)	(305)
Loans Secured by Mortgages on Real Estate [Member] | Construction [Member]
Loans receivable [Abstract]
Total Loans	16,026	28,035
Less: Allowance for Credit Losses	(105)	(254)	(282)
Loans Secured by Mortgages on Real Estate [Member] | Equity and Second Mortgage [Member]
Loans receivable [Abstract]
Total Loans	2,750	2,450
Loans Secured by Mortgages on Real Estate [Member] | Equity Lines of Credit [Member]
Loans receivable [Abstract]
Total Loans	18,919	23,817
Commercial Loans [Member]
Loans receivable [Abstract]
Total Loans	56,959	55,364
Less: Allowance for Credit Losses	(648)	(588)	(646)
Consumer Loans [Member]
Loans receivable [Abstract]
Total Loans	1,418	1,454
Less: Allowance for Credit Losses	(21)	(5)	$ (2)
Consumer Loans [Member] | Loans on Savings Accounts [Member]
Loans receivable [Abstract]
Total Loans	489	372
Consumer Loans [Member] | Other Consumer Loans [Member]
Loans receivable [Abstract]
Total Loans	$ 929	$ 1,082

XML

Loans Receivable, Summarizes Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year (Details) - USD ($) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	$ 22,679
2023	146,332
2022	124,778
2021	97,683
2020	58,941
Prior	34,938
Revolving Lines	18,919
Total	504,270	$ 494,830
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	7
2022	15
2021	3
2020	136
Prior	489
Revolving Lines	0
Total	650	237
Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	22,679
2023	141,336
2022	124,090
2021	97,015
2020	58,211
Prior	34,344
Revolving Lines	18,919
Total	496,594	487,703
Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	4,608
2022	147
2021	621
2020	0
Prior	463
Revolving Lines	0
Total	5,839	3,150
Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	388
2022	541
2021	47
2020	730
Prior	131
Revolving Lines	0
Total	1,837	3,977
Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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	445,893	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]
2024	4,021
2023	54,037
2022	46,986
2021	38,118
2020	23,846
Prior	19,015
Revolving Lines	0
Total	186,023	179,579
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	136
Prior	484
Revolving Lines	0
Total	620	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]
2024	4,021
2023	52,429
2022	46,859
2021	37,755
2020	23,169
Prior	18,421
Revolving Lines	0
Total	182,654	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]
2024	0
2023	1,316
2022	0
2021	363
2020	0
Prior	463
Revolving Lines	0
Total	2,142	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]
2024	0
2023	292
2022	127
2021	0
2020	677
Prior	131
Revolving Lines	0
Total	1,227	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	4,442
2023	34,064
2022	44,258
2021	44,345
2020	20,826
Prior	2,195
Revolving Lines	0
Total	150,130	148,441
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	4,442
2023	32,698
2022	44,147
2021	44,285
2020	20,826
Prior	2,195
Revolving Lines	0
Total	148,593	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]
2024	0
2023	1,366
2022	111
2021	60
2020	0
Prior	0
Revolving Lines	0
Total	1,537	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	0	1,654
Real Estate Loans [Member] | Commercial [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	2,000
2023	4,590
2022	13,550
2021	2,241
2020	7,038
Prior	11,184
Revolving Lines	0
Total	40,603	28,849
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	2,000
2023	4,590
2022	13,550
2021	2,241
2020	7,038
Prior	11,184
Revolving Lines	0
Total	40,603	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	2,331
2023	13,045
2022	7,779
2021	6,257
2020	1,661
Prior	369
Revolving Lines	0
Total	31,442	26,841
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	0
2022	7
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	7	0
Real Estate Loans [Member] | Land [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	2,331
2023	12,972
2022	7,472
2021	6,257
2020	1,661
Prior	369
Revolving Lines	0
Total	31,062	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]
2024	0
2023	73
2022	0
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	73	0
Real Estate Loans [Member] | Land [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	307
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	307	0
Real Estate Loans [Member] | Land [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	2,336
2023	11,898
2022	1,792
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	16,026	28,035
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	2,336
2023	11,898
2022	1,792
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	16,026	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	443
2023	1,096
2022	558
2021	115
2020	441
Prior	97
Revolving Lines	18,919
Total	21,669	26,267
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	443
2023	1,096
2022	558
2021	108
2020	388
Prior	97
Revolving Lines	18,919
Total	21,609
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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	0
2023	0
2022	0
2021	7
2020	53
Prior	0
Revolving Lines	0
Total	60
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]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	6,974
2023	26,955
2022	9,609
2021	6,581
2020	4,830
Prior	2,010
Revolving Lines	0
Total	56,959	55,364
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	1
2022	5
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	6	170
Commercial Loans [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	6,974
2023	25,024
2022	9,466
2021	6,343
2020	4,830
Prior	2,010
Revolving Lines	0
Total	54,647	53,025
Commercial Loans [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	1,853
2022	36
2021	198
2020	0
Prior	0
Revolving Lines	0
Total	2,087	2,339
Commercial Loans [Member] | Substandard [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	78
2022	107
2021	40
2020	0
Prior	0
Revolving Lines	0
Total	225	0
Commercial Loans [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	132
2023	647
2022	246
2021	26
2020	299
Prior	68
Revolving Lines	0
Total	1,418	1,454
Current Period Gross Charge-Offs [Abstract]
2024	0
2023	6
2022	3
2021	3
2020	0
Prior	5
Revolving Lines	0
Total	17	0
Consumer Loans [Member] | Pass [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	132
2023	629
2022	246
2021	26
2020	299
Prior	68
Revolving Lines	0
Total	1,400	1,432
Consumer Loans [Member] | Special Mention [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	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]
2024	0
2023	18
2022	0
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	18	21
Consumer Loans [Member] | Doubtful [Member]
Designated Internal Risk Categories by Portfolio Segment and Loan Class, by Origination Year [Abstract]
2024	0
2023	0
2022	0
2021	0
2020	0
Prior	0
Revolving Lines	0
Total	$ 0	$ 0

XML

Loans Receivable, Grading of Loans, Segregated by Class of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	$ 504,270	$ 494,830
Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	496,594	487,703
Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	5,839	3,150
Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,837	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	445,893	438,012
Real Estate Loans [Member] | One-to-Four-Family Residential [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	186,023	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	182,654	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	2,142	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	1,227	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	150,130	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	148,593	146,787
Real Estate Loans [Member] | Commercial [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,537	0
Real Estate Loans [Member] | Commercial [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	0	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	40,603	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	40,603	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	31,442	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	31,062	26,841
Real Estate Loans [Member] | Land [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	73	0
Real Estate Loans [Member] | Land [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	307	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	16,026	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	16,026	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	2,750	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	18,919	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	56,959	55,364
Commercial Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	54,647	53,025
Commercial Loans [Member] | Special Mention [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	2,087	2,339
Commercial Loans [Member] | Substandard [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	225	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	1,418	1,454
Consumer Loans [Member] | Pass and Pass Watch [Member]
Grading of Loans, Segregated by Class of Loans [Abstract]
Gross loans receivable	1,400	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	18	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	9 Months Ended	12 Months Ended
	Mar. 31, 2024	Jun. 30, 2023
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	$ 504,270	$ 494,830
Recorded Investment > 90 Days and Accruing	930	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	79	182
Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	5,714	2,254
30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	3,158	330
60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	222	750
90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	2,334	1,174
Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	498,556	492,576
Real Estate Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	445,893	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	186,023	179,579
Recorded Investment > 90 Days and Accruing	930	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	4,091	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	2,130	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	212	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	1,749	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	181,932	177,478
Real Estate Loans [Member] | Commercial [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	150,130	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	150,130	148,441
Real Estate Loans [Member] | Multi-Family Residential [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	40,603	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	40,603	28,849
Real Estate Loans [Member] | Land [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	31,442	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	0	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	308	0
Real Estate Loans [Member] | Land [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	31,134	26,805
Real Estate Loans [Member] | Construction [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	16,026	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	16,026	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	2,750	2,450
Recorded Investment > 90 Days and Accruing	0	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	26	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	10	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	16	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	2,724	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	18,919	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	238	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	238	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	0	0
Real Estate Loans [Member] | Equity Lines of Credit [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	0	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	18,681	23,817
Commercial Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	56,959	55,364
Recorded Investment > 90 Days and Accruing	0	0
Commercial Loans [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	1,009	63
Commercial Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	748	63
Commercial Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	0	0
Commercial Loans [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	261	0
Commercial Loans [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	55,950	55,301
Consumer Loans [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	1,418	1,454
Recorded Investment > 90 Days and Accruing	0	0
Consumer Loans [Member] | Total Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	42	0
Consumer Loans [Member] | 30-59 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	42	0
Consumer Loans [Member] | 60-89 Days Past Due [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	0	0
Consumer Loans [Member] | 90 Days or More [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	0	0
Consumer Loans [Member] | Current [Member]
Aging analysis of past due loans segregated by class of loans [Abstract]
Total Loans	$ 1,376	$ 1,454

XML

Loans Receivable, Allowance for Credit Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		9 Months Ended			12 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024		Mar. 31, 2023	Jun. 30, 2023
Allowance for credit losses [Roll Forward]
Beginning Balances			$ 5,173		$ 4,451	$ 4,451
Charge-Offs			(650)			(237)
Recoveries			10			91
Current Provision (Recovery)	$ 11	$ 150	(5)	[1]	718	868
Ending Balances	4,887		4,887			5,173
Evaluated for Impairment [Abstract]
Individually	207		207			628
Collectively						4,545
Loans Receivable [Abstract]
Ending Balances - Total	504,270		504,270			494,830
Ending Balances, Evaluated for Impairment [Abstract]
Individually	3,607		3,607			7,127
Collectively						487,703
Impact of ASU 326 [Member] | ASU 2016-13 [Member]
Allowance for credit losses [Roll Forward]
Beginning Balances			359
Ending Balances						359
Real Estate Loans [Member]
Loans Receivable [Abstract]
Ending Balances - Total	445,893		445,893			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			(620)			(41)
Recoveries			3			4
Current Provision (Recovery)			381	[1]		570
Ending Balances	2,352		2,352			1,900
Evaluated for Impairment [Abstract]
Individually	116		116			495
Collectively						1,405
Loans Receivable [Abstract]
Ending Balances - Total	186,023		186,023			179,579
Ending Balances, Evaluated for Impairment [Abstract]
Individually	2,704		2,704			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 (Recovery)			(413)	[1]		378
Ending Balances	1,141		1,141			1,673
Evaluated for Impairment [Abstract]
Individually	5		5			100
Collectively						1,573
Loans Receivable [Abstract]
Ending Balances - Total	150,130		150,130			148,441
Ending Balances, Evaluated for Impairment [Abstract]
Individually	128		128			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 (Recovery)			53	[1]		(129)
Ending Balances	142		142			228
Evaluated for Impairment [Abstract]
Individually						0
Collectively						228
Loans Receivable [Abstract]
Ending Balances - Total	40,603		40,603			28,849
Ending Balances, Evaluated for Impairment [Abstract]
Individually						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			(7)			0
Recoveries			1			0
Current Provision (Recovery)			68	[1]		(31)
Ending Balances	251		251			274
Evaluated for Impairment [Abstract]
Individually	2		2			0
Collectively						274
Loans Receivable [Abstract]
Ending Balances - Total	31,442		31,442			26,841
Ending Balances, Evaluated for Impairment [Abstract]
Individually	389		389			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 (Recovery)			(105)	[1]		(28)
Ending Balances	105		105			254
Evaluated for Impairment [Abstract]
Individually						0
Collectively						254
Loans Receivable [Abstract]
Ending Balances - Total	16,026		16,026			28,035
Ending Balances, Evaluated for Impairment [Abstract]
Individually						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			6			5
Current Provision (Recovery)			(60)	[1]		75
Ending Balances	227		227			251
Evaluated for Impairment [Abstract]
Individually	3		3			4
Collectively						247
Loans Receivable [Abstract]
Ending Balances - Total	21,669		21,669			26,267
Ending Balances, Evaluated for Impairment [Abstract]
Individually	153		153			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			(6)			(170)
Recoveries			0			82
Current Provision (Recovery)			42	[1]		30
Ending Balances	648		648			588
Evaluated for Impairment [Abstract]
Individually	77		77			29
Collectively						559
Loans Receivable [Abstract]
Ending Balances - Total	56,959		56,959			55,364
Ending Balances, Evaluated for Impairment [Abstract]
Individually	155		155			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			(17)			0
Recoveries			0			0
Current Provision (Recovery)			29	[1]		3
Ending Balances	21		21			5
Evaluated for Impairment [Abstract]
Individually	4		4			0
Collectively						5
Loans Receivable [Abstract]
Ending Balances - Total	1,418		1,418			1,454
Ending Balances, Evaluated for Impairment [Abstract]
Individually	$ 78		78			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.

XML

Loans Receivable, Loans Individually Evaluated for Impairment (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2024 USD ($) Unit	Jun. 30, 2023 USD ($)
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	$ 3,607	$ 7,127
Specific allocations	207	628
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	2,704	3,043
Specific allocations	116	495
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	128	1,654
Specific allocations	$ 5	100
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
Specific allocations		0
Real Estate Loans [Member] | Multi-Family Residential [Member] | Residential Property [Member] | Minimum [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Number of housing units included in collateralized property | Unit	5
Real Estate Loans [Member] | Land [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	$ 389	0
Specific allocations	2	0
Real Estate Loans [Member] | Equity and Second Mortgage [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Unpaid Principal Balance		0
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] | Home Equity Loans and Lines of Credit [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	153	69
Specific allocations	3	4
Commercial Loans [Member]
Loans individually evaluated for impairment, segregated by class of loans [Abstract]
Loan balance	155	2,339
Specific allocations	77	29
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	78	22
Specific allocations	$ 4	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		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

XML

Loans Receivable, Troubled Debt Restructurings (Details) $ in Thousands	9 Months Ended	12 Months Ended
	Mar. 31, 2024 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	$ 1,700

XML

Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Summary of Deposits [Abstract]
Non-Interest Bearing	$ 132,577	$ 145,553
NOW Accounts	65,372	65,335
Money Markets	80,338	114,195
Passbook Savings	71,792	81,895
Total transaction accounts	350,079	406,978
Certificates of Deposit	228,802	190,383
Total Deposits	$ 578,881	$ 597,361

XML

Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended		9 Months Ended
	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023
Calculation of earnings per share [Abstract]
Net income	$ 732	$ 1,062	$ 2,955	$ 4,446
Weighted average shares outstanding - basic (in shares)	3,047,000	3,006,000	3,040,000	3,022,000
Effect of dilutive common stock equivalents (in shares)	44,000	126,000	56,000	142,000
Adjusted weighted average shares outstanding - diluted (in shares)	3,091,000	3,132,000	3,096,000	3,164,000
Basic earnings per share (in dollars per share)	$ 0.24	$ 0.35	$ 0.97	$ 1.48
Diluted earnings per share (in dollars per share)	$ 0.24	$ 0.34	$ 0.95	$ 1.41
Outstanding options to purchase shares (in shares)	364,037	384,789	364,625	387,701
Weighted average price per share of outstanding options (in dollars per share)	$ 11.66	$ 11.81	$ 11.66	$ 11.81
Components of weighted average outstanding shares [Abstract]
Average common shares issued (in shares)	6,124,000	6,124,000	6,124,000	6,124,000
Average unearned ESOP shares (in shares)	(94,000)	(113,000)	(96,000)	(119,000)
Average Company stock purchased (in shares)	(2,983,000)	(3,005,000)	(2,988,000)	(2,983,000)
Weighted average shares outstanding (in shares)	3,047,000	3,006,000	3,040,000	3,022,000
Stock Options [Member]
Calculation of earnings per share [Abstract]
Effect of dilutive common stock equivalents (in shares)	43,676	126,427	55,910	142,259

XML

Stock-Based Compensation, Stock Option Plans (Details) - shares	9 Months Ended
	Mar. 31, 2024	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
Expiration date	Jul. 31, 2024
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
Expiration date	Jul. 31, 2024
Outstanding stock options (in shares)	35,350
Term of share-based payment award	10 years

XML

Stock-Based Compensation, Stock Incentive Plans (Details) - USD ($) $ in Thousands			3 Months Ended		9 Months Ended
	Nov. 13, 2019	Nov. 12, 2014	Mar. 31, 2024	Mar. 31, 2023	Mar. 31, 2024	Mar. 31, 2023	Nov. 11, 2020
Stock Options [Member]
Stock Incentive Plans [Abstract]
Award vesting period					5 years
Stock Incentive Plans [Member]
Stock Incentive Plans [Abstract]
Compensation expense			$ 5	$ 81	$ 118	$ 173
2014 Stock Incentive Plan [Member]
Stock Incentive Plans [Abstract]
Number of shares authorized under plan (in shares)		300,000
Termination date					Aug. 13, 2024
2014 Stock Incentive Plan [Member] | Share Awards [Member]
Stock Incentive Plans [Abstract]
Aggregate number of shares available for grant (in shares)			1,600		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)			24,600		24,600
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

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Related Party Transactions (Details) - USD ($) $ in Millions	Mar. 31, 2024	Jun. 30, 2023
Related Party Transactions [Abstract]
Loans made to directors and executive officers	$ 4.3	$ 4.4

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Fair Value Disclosures, Carrying Amount and Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	9 Months Ended
	Mar. 31, 2024	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	$ 29,829	$ 39,551
Carrying Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	8,019	24,765
Securities Available-for-Sale	29,829	39,551
Securities to be Held-to-Maturity	70,302	74,423
Loans Held-for-Sale	1,904	4
Loans Receivable	499,267	489,493
Financial Liabilities [Abstract]
Deposits	578,881	597,361
Other Borrowings	8,500	8,550
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	14,555	13,277
Estimated Fair Value [Member]
Financial Assets [Abstract]
Cash and Cash Equivalents	8,019	24,765
Securities Available-for-Sale	29,829	39,551
Securities to be Held-to-Maturity	57,256	61,222
Loans Held-for-Sale	1,904	4
Loans Receivable	461,572	444,117
Financial Liabilities [Abstract]
Deposits	576,895	481,055
Other Borrowings	8,500	8,550
Off-Balance Sheet Items [Abstract]
Mortgage Loan Commitments	$ 14,555	$ 13,277

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Fair Value Disclosures, Recurring and Non-recurring (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	$ 29,829	$ 39,551
Debt Securities [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	25,896	28,634
FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	6,155	11,156
FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	16,367	13,714
GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,374	3,764
US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,566	9,841
Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	367	1,076
Recurring [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	29,829	39,551
Recurring [Member] | FHLMC [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	6,155	11,156
Recurring [Member] | FNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	16,367	13,714
Recurring [Member] | GNMA [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,374	3,764
Recurring [Member] | US Treasury Notes [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	3,566	9,841
Recurring [Member] | Municipal Bonds [Member]
Fair values of assets and liabilities measured on a recurring basis [Abstract]
Securities Available-for-Sale	367	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	29,829	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	6,155	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	16,367	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	3,374	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	3,566	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	367	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	2,747	701
Other Real Estate Owned, Net of Allowance		330
Total	2,747	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
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
Total	0	0
Non-recurring [Member] | Level 3 [Member]
Assets [Abstract]
Impaired Loans, Net of Allowance	2,747	701
Other Real Estate Owned, Net of Allowance		330
Total	$ 2,747	$ 1,031

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Leases (Details) - USD ($) $ in Thousands	Mar. 31, 2024	Jun. 30, 2023
Lease Right-of-Use Assets [Abstract]
Operating lease right-of-use assets	$ 818	$ 829
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List]	Other Assets	Other Assets
Lease Liabilities [Abstract]
Operating lease liabilities	$ 863	$ 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	34 years 8 months 12 days	35 years 4 months 24 days
Weighted-average discount rate [Abstract]
Operating leases	3.00%	3.00%