UNITED STATES
|
|
SECURITIES AND EXCHANGE COMMISSION
|
|
Washington, DC 20549
|
|
FORM
|
|
(Mark One)
|
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
For the quarterly period ended:
|
|
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:
|
|
|
||
(Exact name of registrant as specified in its charter)
|
||
|
|
|
(State or other jurisdiction of incorporation or organization)
|
(IRS Employer Identification No.)
|
|
|
|
|
(Address of principal executive offices)
|
(Zip Code)
|
|
(
|
||
(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
|
|
|
|
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. ☒
|
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). ☒
|
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
|
☐ |
|
☒
|
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). |
☒ No |
Shares of common stock, par value $0.01 per share, outstanding as of February 10, 2022: The registrant had
|
Page
|
||
PART I
|
FINANCIAL INFORMATION
|
|
Item 1:
|
Financial Statements (Unaudited)
|
|
1
|
||
2
|
||
3
|
||
4
|
||
6
|
||
8
|
||
Item 2:
|
30
|
|
Item 3:
|
37
|
|
Item 4:
|
37
|
|
PART II
|
OTHER INFORMATION
|
|
Item 1:
|
38
|
|
Item 1A:
|
38
|
|
Item 2:
|
38
|
|
Item 3:
|
38
|
|
Item 4:
|
38
|
|
Item 5:
|
38
|
|
Item 6:
|
39
|
|
SIGNATURES |
December 31, 2021 (Unaudited) |
June 30, 2021
|
|||||||
(In Thousands)
|
||||||||
ASSETS
|
||||||||
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $
December 31, 2021 and June 30, 2021, Respectively)
|
$
|
|
$
|
|
||||
Securities Available-for-Sale
|
|
|
||||||
Securities Held-to-Maturity (Fair Value of $
|
|
|
||||||
Loans Held-for-Sale
|
|
|
||||||
Loans Receivable, Net of Allowance for Loan Losses of $
|
|
|
||||||
Accrued Interest Receivable
|
|
|
||||||
Premises and Equipment, Net
|
|
|
||||||
Bank Owned Life Insurance
|
|
|
||||||
Deferred Tax Asset
|
|
|
||||||
Other Real Estate Owned
|
|
|
||||||
Other Assets
|
|
|
||||||
Total Assets
|
$
|
|
$
|
|
||||
LIABILITIES AND SHAREHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Deposits:
|
||||||||
Non-interest bearing
|
$
|
|
$
|
|
||||
Interest-bearing
|
|
|
||||||
Total Deposits
|
|
|
||||||
Advances from Borrowers for Taxes and Insurance
|
|
|
||||||
Short-term Federal Home Loan Bank Advances
|
|
|
||||||
Long-term Federal Home Loan Bank Advances
|
|
|
||||||
Other Borrowings
|
|
|
||||||
Other Accrued Expenses and Liabilities
|
|
|
||||||
Total Liabilities
|
|
|
||||||
SHAREHOLDERS’ EQUITY
|
||||||||
Preferred Stock – $
|
|
|
||||||
Common Stock – $
Outstanding at December 31, 2021 and June 30, 2021, Respectively
|
|
|
||||||
Additional Paid-in Capital
|
|
|
||||||
Unearned ESOP Stock
|
(
|
)
|
(
|
)
|
||||
Retained Earnings
|
|
|
||||||
Accumulated Other Comprehensive Income
|
|
|
||||||
Total Shareholders’ Equity
|
|
|
||||||
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
|
$
|
|
$
|
|
For the Three Months Ended
December 31,
|
For the Six Months Ended
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In Thousands, Except per Share Data)
|
||||||||||||||||
INTEREST INCOME
|
||||||||||||||||
Loans, Including Fees
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Investment Securities
|
|
|
|
|
||||||||||||
Mortgage-Backed Securities
|
|
|
|
|
||||||||||||
Other Interest-Earning Assets
|
|
|
|
|
||||||||||||
Total Interest Income
|
|
|
|
|
||||||||||||
INTEREST EXPENSE
|
||||||||||||||||
Deposits
|
|
|
|
|
||||||||||||
Other Borrowings
|
|
|
|
|
||||||||||||
Federal Home Loan Bank Borrowings
|
|
|
|
|
||||||||||||
Total Interest Expense
|
|
|
|
|
||||||||||||
Net Interest Income
|
|
|
|
|
||||||||||||
PROVISION FOR LOAN LOSSES
|
|
|
|
|
||||||||||||
Net Interest Income after Provision for Loan Losses
|
|
|
|
|
||||||||||||
NON-INTEREST INCOME
|
||||||||||||||||
Gain on Sale of Loans
|
|
|
|
|
||||||||||||
Income on Bank Owned Life Insurance
|
|
|
|
|
||||||||||||
Service Charges on Deposit Accounts
|
|
|
|
|
||||||||||||
Other Income
|
|
|
|
|
||||||||||||
Total Non-Interest Income
|
|
|
|
|
||||||||||||
NON-INTEREST EXPENSE
|
||||||||||||||||
Compensation and Benefits
|
|
|
|
|
||||||||||||
Occupancy and Equipment
|
|
|
|
|
||||||||||||
Data Processing
|
|
|
|
|
||||||||||||
Audit and Examination Fees
|
|
|
|
|
||||||||||||
Franchise and Bank Shares Tax
|
|
|
|
|
||||||||||||
Advertising
|
|
|
|
|
||||||||||||
Legal Fees
|
|
|
|
|
||||||||||||
Loan and Collection
|
|
|
|
|
||||||||||||
Deposit Insurance Premium
|
|
|
|
|
||||||||||||
Valuation Adjustment Real Estate Owned
|
|
|
|
|
||||||||||||
Other Expense
|
|
|
|
|
||||||||||||
Total Non-Interest Expense
|
|
|
|
|
||||||||||||
Income Before Income Taxes
|
|
|
|
|
||||||||||||
PROVISION FOR INCOME TAX EXPENSE
|
|
|
|
|
||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
EARNINGS PER COMMON SHARE:
|
||||||||||||||||
Basic
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
DIVIDENDS DECLARED
|
$
|
|
$
|
|
$
|
|
$
|
|
For the Three Months Ended
December 31,
|
For the Six Months Ended
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In Thousands)
|
(In Thousands)
|
|||||||||||||||
Net Income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Other Comprehensive Loss, Net of Tax
|
||||||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||
Net unrealized Losses
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Income Tax Effect
|
|
|
|
|
||||||||||||
Other Comprehensive Loss
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Total Comprehensive Income
|
$
|
|
$
|
|
$
|
|
$
|
|
Common
Stock
|
Additional
Paid-in
Capital
|
Unearned
ESOP
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||
BALANCE – September 30, 2020
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
||||||||||||||||||
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Share Awards Earned
|
|
|
|
|
|
|
||||||||||||||||||
Stock Options Vested
|
|
|
|
|
|
|
||||||||||||||||||
Common Stock Issuance for Stock Option Exercises
|
|
|
|
|
|
|
||||||||||||||||||
ESOP Compensation Earned
|
|
|
|
|
|
|
||||||||||||||||||
Company Stock Purchased
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Dividends Declared
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
BALANCE – December 31, 2020
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
BALANCE – September 30, 2021
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
||||||||||||||||||
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Share Awards Earned
|
|
|
|
|
|
|
||||||||||||||||||
Stock Options Vested
|
|
|
|
|
|
|
||||||||||||||||||
Common Stock Issuance for Stock Option Exercises
|
|
|
|
|
|
|
||||||||||||||||||
ESOP Compensation Earned
|
|
|
|
|
|
|
||||||||||||||||||
Company Stock Purchased
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Dividends Declared
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
BALANCE – December 31, 2021
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Common
Stock
|
Additional
Paid-in
Capital
|
Unearned
ESOP
Stock
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Total
Shareholders’
Equity
|
|||||||||||||||||||
BALANCE – June 30, 2020
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
||||||||||||||||||
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Share Awards Earned
|
|
|
|
|
|
|
||||||||||||||||||
Stock Options Vested
|
|
|
|
|
|
|
||||||||||||||||||
Common Stock Issuance for Stock Option Exercises
|
|
|
|
|
|
|
||||||||||||||||||
ESOP Compensation Earned
|
|
|
|
|
|
|
||||||||||||||||||
Company Stock Purchased
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Dividends Declared
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
BALANCE – December 31, 2020
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
BALANCE – June 30, 2021
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
|||||||||||
Net Income
|
|
|
|
|
|
|
||||||||||||||||||
Changes in Unrealized Gain on Securities Available-for-Sale, Net of Tax Effects
|
|
|
|
|
(
|
)
|
(
|
)
|
||||||||||||||||
Share Awards Earned
|
|
|
|
|
|
|
||||||||||||||||||
Stock Options Vested
|
|
|
|
|
|
|
||||||||||||||||||
Common Stock Issuance for Stock Option Exercises
|
|
|
|
|
|
|
||||||||||||||||||
ESOP Compensation Earned
|
|
|
|
|
|
|
||||||||||||||||||
Company Stock Purchased
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
Dividends Declared
|
|
|
|
(
|
)
|
|
(
|
)
|
||||||||||||||||
BALANCE – December 31, 2021
|
$
|
|
$
|
|
$
|
(
|
)
|
$
|
|
$
|
|
$
|
|
Six Months Ended
|
||||||||
December 31,
|
||||||||
2021
|
2020
|
|||||||
(In Thousands)
|
||||||||
CASH FLOWS FROM OPERATING ACTIVITIES
|
||||||||
Net Income
|
$
|
|
$
|
|
||||
Adjustments to Reconcile Net Income to Net Cash Provided by (Used in) Operating Activities
|
||||||||
Bad Debt Recovery
|
|
|
||||||
Federal Home Loan Bank stock certificate
|
|
(
|
)
|
|||||
Net Amortization and Accretion on Securities
|
|
|
||||||
Gain on Sale of Loans
|
(
|
)
|
(
|
)
|
||||
Amortization of Deferred Loan Fees
|
(
|
)
|
(
|
)
|
||||
Depreciation of Premises and Equipment
|
|
|
||||||
ESOP Expense
|
|
|
||||||
Stock Option Expense
|
|
|
||||||
Deferred Income Tax
|
|
(
|
)
|
|||||
Valuation Adjustment Real Estate Owned |
||||||||
Provision for Loan Losses
|
|
|
||||||
Increase in Cash Surrender Value on Bank Owned Life Insurance
|
(
|
)
|
(
|
)
|
||||
Share Awards Expense
|
|
|
||||||
Changes in Assets and Liabilities:
|
||||||||
Loans Held-for-Sale – Originations and Purchases
|
(
|
)
|
(
|
)
|
||||
Loans Held-for-Sale – Sale and Principal Repayments
|
|
|
||||||
Accrued Interest Receivable
|
|
|
||||||
Other Operating Assets
|
|
(
|
)
|
|||||
Other Operating Liabilities
|
(
|
)
|
(
|
)
|
||||
Net Cash Provided by (Used in) Operating Activities
|
|
(
|
)
|
|||||
CASH FLOWS FROM INVESTING ACTIVITIES
|
||||||||
Loan Originations and Purchases, Net of Principal Collections
|
(
|
)
|
|
|||||
Deferred Loan Fees Collected
|
|
|
||||||
Acquisition of Premises and Equipment
|
(
|
)
|
(
|
)
|
||||
Proceeds Sale of Land
|
|
|
||||||
Activity in Available-for-Sale Securities:
|
||||||||
Principal Payments on Mortgage-Backed Securities
|
|
|
||||||
Purchases of Securities
|
|
(
|
)
|
|||||
Activity in Held-to-Maturity Securities:
|
||||||||
Principal Payments on Mortgage-Backed Securities
|
|
|
||||||
Sale/Redemptions of Securities
|
||||||||
Purchase of Securities
|
(
|
)
|
(
|
)
|
||||
Net Cash Provided by (Used in) Investing Activities
|
(
|
)
|
|
Six Months Ended
|
||||||||
December 31,
|
||||||||
2021
|
2020
|
|||||||
(In Thousands)
|
||||||||
CASH FLOWS FROM FINANCING ACTIVITIES
|
||||||||
Net Increase in Deposits
|
$
|
|
$
|
|
||||
Repayments of Advances from Federal Home Loan Bank
|
(
|
)
|
(
|
)
|
||||
Repayments of Other Borrowings
|
(
|
)
|
(
|
)
|
||||
Net Decrease in Advances from Borrowers for Taxes and Insurance
|
(
|
)
|
(
|
)
|
||||
Dividends Paid
|
(
|
)
|
(
|
)
|
||||
Company Stock Purchased
|
(
|
)
|
(
|
)
|
||||
Proceeds from Stock Options Exercised
|
|
|
||||||
Proceeds from Other Bank Borrowings | ||||||||
Plan Share Distributions
|
|
|
||||||
Net Cash Provided by Financing Activities
|
|
|
||||||
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
|
(
|
)
|
|
|||||
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
|
$
|
|
$
|
|
||||
CASH AND CASH EQUIVALENTS - END OF PERIOD
|
$
|
|
$
|
|
||||
SUPPLEMENTAL CASH FLOW INFORMATION
|
||||||||
Interest Paid on Deposits and Borrowed Funds
|
$
|
|
$
|
|
||||
Income Taxes Paid
|
|
|
||||||
Market Value Adjustment for Unrealized Gain (Loss) on Debt Securities Available-for-Sale
|
(
|
)
|
(
|
)
|
Buildings and Improvements
|
|
|
Furniture and Equipment
|
|
December 31,
2021
|
||||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Securities Available-for-Sale |
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
(In Thousands) |
||||||||||||||||
Debt Securities
|
||||||||||||||||
FHLMC Mortgage-Backed Certificates
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
FNMA Mortgage-Backed Certificates
|
|
|
|
|
||||||||||||
GNMA Mortgage-Backed Certificates
|
|
|
|
|
||||||||||||
Debt Securities
|
||||||||||||||||
Total Debt
Securities
|
|
|
|
|
||||||||||||
Total Securities
Available-for-Sale
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities Held-to-Maturity
|
||||||||||||||||
Debt Securities
|
||||||||||||||||
GNMA Mortgage-Backed
Certificates
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
FHLMC Mortgage-Backed
Certificates
|
|
|
|
|
||||||||||||
FNMA Mortgage-Backed
Certificates
|
|
|
|
|
||||||||||||
Total Debt Securities
|
|
|
|
|
||||||||||||
Municipals
|
|
|
|
|
||||||||||||
Other Securities (Non-Marketable)
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Total Other Securities
|
|
|
|
|||||||||||||
Total Securities Held-to-Maturity
|
$
|
|
$
|
|
$
|
|
$
|
|
|
June 30, 2021
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Amortized
|
Unrealized
|
Unrealized
|
Fair
|
|||||||||||||
Securities Available-for-Sale
|
Cost
|
Gains
|
Losses
|
Value
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Debt Securities
|
||||||||||||||||
FHLMC Mortgage-Backed Certificates
|
$
|
$
|
$
|
$
|
||||||||||||
FNMA Mortgage-Backed Certificates
|
||||||||||||||||
GNMA Mortgage-Backed Certificates
|
||||||||||||||||
Total Debt Securities
|
||||||||||||||||
Total Securities Available-for-Sale
|
$
|
$
|
$
|
$
|
||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||
Debt Securities
|
|
|
|
|
||||||||||||
GNMA Mortgage-Backed Securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
FHLMC Mortgage-Backed Certificates
|
||||||||||||||||
FNMA Mortgage-Backed Securities
|
|
|
|
|
||||||||||||
Total Debt Securities
|
|
|
|
|
||||||||||||
Municipals
|
|
|
|
|
||||||||||||
Equity Securities (Non-Marketable)
|
||||||||||||||||
|
|
|
|
|
||||||||||||
|
|
|
|
|
||||||||||||
Total Equity Securities
|
||||||||||||||||
Total Securities Held-to-Maturity
|
$
|
|
$
|
|
$
|
|
$
|
|
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
|
||||||||||||||||
After Five through Ten Years
|
||||||||||||||||
Over Ten Years
|
||||||||||||||||
Municipals
|
||||||||||||||||
Within One Year or Less
|
$ | $ | $ | $ | ||||||||||||
One through Five Years
|
||||||||||||||||
After Five through Ten Years
|
||||||||||||||||
Over Ten Years
|
||||||||||||||||
Other Equity Securities
|
||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||
Mortgage-Backed Securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
Securities Available-for-Sale
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
||||||||||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||
Mortgage-Backed Securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
Securities Held-to-Maturity
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
||||||||||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Securities Available-for-Sale
|
||||||||||||||||
Mortgage-Backed Securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
Securities Available-for-Sale
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
||||||||||||||||
Less Than Twelve Months
|
Over Twelve Months
|
|||||||||||||||
Gross
|
Gross
|
|||||||||||||||
Unrealized
|
Fair
|
Unrealized
|
Fair
|
|||||||||||||
Losses
|
Value
|
Losses
|
Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Securities Held-to-Maturity
|
||||||||||||||||
Mortgage-Backed Securities
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Total
Securities Held-to-Maturity
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December 31, 2021
|
June 30, 2021
|
||||||
(In Thousands)
|
||||||||
Loans Secured by Mortgages on Real Estate
|
||||||||
One-to-Four Family Residential
|
$
|
|
$
|
|
||||
Commercial
|
|
|
||||||
Multi-Family Residential
|
|
|
||||||
Land
|
|
|
||||||
Construction
|
|
|
||||||
Equity and Second Mortgage
|
|
|
||||||
Equity Lines of Credit
|
|
|
||||||
Total Mortgage
Loans
|
|
|
||||||
Commercial Loans
|
|
|
||||||
Consumer Loans
|
||||||||
Loans on Savings Accounts
|
|
|
||||||
Other Consumer Loans
|
|
|
||||||
Total Consumer
Other Loans
|
|
|
||||||
Total Loans
|
|
|
||||||
Less:
Allowance for Loan Losses
|
(
|
)
|
(
|
)
|
||||
Unamortized Loan Fees
|
(
|
)
|
(
|
)
|
||||
Net Loans
Receivable
|
$
|
|
$
|
|
Six Months Ended December 31,
|
||||||||
|
2021
|
2020
|
||||||
(In Thousands)
|
||||||||
Balance - Beginning of Period
|
$
|
|
$
|
|
||||
Provision for Loan Losses
|
|
|
||||||
Loan Charge-Offs
|
(
|
)
|
(
|
)
|
||||
Recoveries
|
|
|
||||||
Balance - End of Period
|
$
|
|
$
|
|
December 31, 2021
|
Pass and
Pass Watch
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
(In Thousands)
|
||||||||||||||||||||
Real Estate Loans:
|
||||||||||||||||||||
One-to-Four Family Residential
|
$
|
|
$
|
|
$
|
|
$ |
$
|
|
|||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Multi-Family Residential
|
|
|
|
|
|
|||||||||||||||
Land
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Equity and Second Mortgage
|
|
|
|
|
|
|||||||||||||||
Equity Lines of Credit
|
|
|
|
|
|
|||||||||||||||
Commercial Loans
|
|
|
|
|
|
|||||||||||||||
Consumer Loans
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
Pass and
Pass Watch
|
Special
Mention
|
Substandard
|
Doubtful
|
Total
|
|||||||||||||||
(In Thousands) | ||||||||||||||||||||
Real Estate Loans:
|
||||||||||||||||||||
One-to-Four Family Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||
Commercial
|
|
|
|
|
|
|||||||||||||||
Multi-Family Residential
|
|
|
|
|
|
|||||||||||||||
Land
|
|
|
|
|
|
|||||||||||||||
Construction
|
|
|
|
|
|
|||||||||||||||
Equity and Second Mortgage
|
|
|
|
|
|
|||||||||||||||
Equity Lines of Credit
|
|
|
|
|
|
|||||||||||||||
Commercial Loans
|
|
|
|
|
|
|||||||||||||||
Consumer Loans
|
|
|
|
|
|
|||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days or
More
|
Total
Past Due
|
Current |
Total Loans
Receivable
|
Recorded
Investment
>90 Days
and
Accruing
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Real Estate Loans:
|
||||||||||||||||||||||||||||
One-to-Four Family
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Multi-Family Residential
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Land
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity and Second Mortgage
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity Lines of Credit
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
90 Days or
More
|
Total
Past Due
|
Current
|
Total
Loans
Receivable
|
Recorded
Investment
> 90 Days
and
Accruing
|
|||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||
Real Estate Loans:
|
||||||||||||||||||||||||||||
One-to-Four Family
Residential
|
$ |
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||
Commercial
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Multi-Family Residential
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Land
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Construction
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity and Second
Mortgage
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Equity Lines of Credit
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Commercial Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Consumer Loans
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Total
|
$ |
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Real Estate Loans
|
||||||||||||||||||||||||||||||||||||
December 31, 2021
|
1-4 Family
Residential
|
Commercial
|
Multi-
Family
|
Land
|
Construction
|
Home
Equity
Loans and
Lines of
Credit
|
Commercial
Loans
|
Consumer
Loans
|
Total
|
|||||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance
for loan losses:
|
||||||||||||||||||||||||||||||||||||
Beginning Balances
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Charge-Offs
|
(
|
)
|
|
|
|
|
|
|
|
(
|
)
|
|||||||||||||||||||||||||
Recoveries
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Current Provision
|
|
(
|
)
|
(
|
)
|
(
|
)
|
|
(
|
)
|
|
|
|
|||||||||||||||||||||||
Ending Balances
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Evaluated for Impairment:
|
||||||||||||||||||||||||||||||||||||
Individually
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Collectively
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Loans
Receivable:
|
||||||||||||||||||||||||||||||||||||
Ending Balances – Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||||||||
Ending Balances:
|
||||||||||||||||||||||||||||||||||||
Evaluated for Impairment:
|
||||||||||||||||||||||||||||||||||||
Individually
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||||||||||||
Collectively
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
Real Estate Loans
|
||||||||||||||||||||||||||||||||||||
June 30, 2021
|
1-4 Family
Residential
|
Commercial
|
Multi-
Family
|
Land
|
Construction
|
Home
Equity
Loans And
Lines of
Credit
|
Commercial
Loans
|
Consumer
Loans
|
Total
|
|||||||||||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||||||||||||||
Allowance
for loan losses:
|
||||||||||||||||||||||||||||||||||||
Beginning Balances
|
$ | $ | $ | $ | $ |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||||||||
Charge-Offs
|
( |
) | ( |
) |
|
(
|
)
|
|
(
|
)
|
||||||||||||||||||||||||||
Recoveries
|
|
|
|
|
||||||||||||||||||||||||||||||||
Current Provision
|
( |
) | ( |
) | ( |
) | ||||||||||||||||||||||||||||||
Ending Balances
|
$ | $ | $ | $ | $ |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||||||||
Evaluated for Impairment:
|
||||||||||||||||||||||||||||||||||||
Individually
|
|
|
|
|
||||||||||||||||||||||||||||||||
Collectively
|
|
|
|
|
||||||||||||||||||||||||||||||||
Loans
Receivable:
|
||||||||||||||||||||||||||||||||||||
Ending Balances – Total
|
$ | $ | $ | $ | $ |
$
|
|
$
|
|
$
|
|
$
|
|
|||||||||||||||||||||||
Ending Balances:
|
||||||||||||||||||||||||||||||||||||
Evaluated for Impairment:
|
||||||||||||||||||||||||||||||||||||
Individually
|
|
|
|
|
||||||||||||||||||||||||||||||||
Collectively
|
$ | $ | $ | $ | $ |
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
Unpaid
Principal
Balance
|
Recorded
Investment With
No Allowance
|
Recorded
Investment With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average Recorded
Investment
|
||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Real Estate Loans:
|
||||||||||||||||||||||||
One-to-Four Family
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Multi-Family Residential
|
|
|
|
|
|
|
||||||||||||||||||
Land
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Equity and Second Mortgage
|
|
|
|
|
|
|
||||||||||||||||||
Equity Lines of Credit
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer Loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
June 30, 2021
|
Unpaid
Principal
Balance
|
Recorded
Investment With
No Allowance
|
Recorded
Investment With
Allowance
|
Total
Recorded
Investment
|
Related
Allowance
|
Average Recorded
Investment
|
||||||||||||||||||
(In Thousands)
|
||||||||||||||||||||||||
Real
Estate Loans:
|
||||||||||||||||||||||||
One-to-Four Family
Residential
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||||||
Commercial
|
|
|
|
|
|
|
||||||||||||||||||
Multi-Family Residential
|
|
|
|
|
|
|
||||||||||||||||||
Land
|
|
|
|
|
|
|
||||||||||||||||||
Construction
|
|
|
|
|
|
|
||||||||||||||||||
Equity and Second Mortgage
|
|
|
|
|
|
|
||||||||||||||||||
Equity Lines of Credit
|
|
|
|
|
|
|
||||||||||||||||||
Commercial Loans
|
|
|
|
|
|
|
||||||||||||||||||
Consumer Loans
|
|
|
|
|
|
|
||||||||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
$
|
|
|
December 31, 2021
|
|||||||||||||||
|
Current
|
Past Due Greater
Than 30 Days
|
Nonaccrual
TDRs
|
Total TDRs
|
||||||||||||
Commercial real estate
|
$ |
|
$ |
|
$ |
|
$ |
|
|
June 30, 2021
|
|||||||||||||||
|
Current
|
Past Due Greater
Than 30 Days
|
Nonaccrual
TDRs
|
Total TDRs
|
||||||||||||
Commercial business
|
$
|
|
$
|
|
$
|
|
$
|
|
December 31, 2021
|
June 30, 2021
|
|||||||
(In Thousands)
|
||||||||
Non-Interest Bearing
|
$
|
|
$
|
|
||||
NOW Accounts
|
|
|
||||||
Money Markets
|
|
|
||||||
Passbook Savings
|
|
|
||||||
|
|
|||||||
Certificates of Deposit
|
|
|
||||||
Total Deposits
|
$
|
|
$
|
|
|
Three Months Ended
December 31,
|
Six Months Ended
December 31,
|
||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In Thousands, Except Per Share Data)
|
||||||||||||||||
Net income
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Weighted average shares outstanding – basic
|
|
|
|
|
||||||||||||
Effect of dilutive common stock equivalents
|
|
|
|
|
||||||||||||
Adjusted weighted average shares outstanding – diluted
|
|
|
|
|
||||||||||||
Basic earnings per share
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Diluted earnings per share
|
$
|
|
$
|
|
$
|
|
$
|
|
Three Months Ended
December 31,
|
Six Months Ended
December 31,
|
|||||||||||||||
2021
|
2020
|
2021
|
2020
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Average common shares issued
|
|
|
|
|
||||||||||||
Average unearned ESOP shares
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Average Company stock purchased
|
(
|
)
|
(
|
)
|
(
|
)
|
(
|
)
|
||||||||
Weighted average shares outstanding
|
|
|
|
|
December 31, 2021
|
June 30, 2021
|
|||||||||||||||
Carrying
|
Estimated
|
Carrying
|
Estimated
|
|||||||||||||
Value
|
Fair Value
|
Value
|
Fair Value
|
|||||||||||||
(In Thousands)
|
||||||||||||||||
Financial Assets
|
||||||||||||||||
Cash and Cash Equivalents
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Securities Available-for-Sale
|
|
|
|
|
||||||||||||
Securities to be Held-to-Maturity
|
|
|
|
|
||||||||||||
Loans Held-for-Sale
|
|
|
|
|
||||||||||||
Loans Receivable
|
|
|
|
|
||||||||||||
Financial Liabilities
|
||||||||||||||||
Deposits
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
Advances from FHLB
|
|
|
|
|
||||||||||||
Off-Balance Sheet Items
|
||||||||||||||||
Mortgage Loan Commitments
|
$
|
|
$
|
|
$
|
|
$
|
|
•
|
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.
|
•
|
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.
|
Fair Value Measurements Using:
|
||||||||||||||||
December 31, 2021
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
Total
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Available-for-Sale
|
||||||||||||||||
Debt Securities
|
||||||||||||||||
FHLMC
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
FNMA
|
|
|
|
|
||||||||||||
GNMA
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
Fair Value Measurements Using:
|
||||||||||||||||
June 30, 2021
|
Quoted Prices in
Active Markets for
Identical Assets
(Level 1)
|
Significant
Other Observable
Inputs
(Level 2)
|
Unobservable
Inputs
(Level 3)
|
|
||||||||||||
(In Thousands)
|
||||||||||||||||
Available-for-Sale
|
||||||||||||||||
Debt Securities
|
||||||||||||||||
FHLMC
|
$
|
|
$
|
|
$
|
|
$
|
|
||||||||
FNMA
|
|
|
|
|
||||||||||||
GNMA
|
|
|
|
|
||||||||||||
Total
|
$
|
|
$
|
|
$
|
|
$
|
|
(In Thousands)
|
December 31, 2021
|
June 30, 2021 | |||||||
Lease Right-of-Use Assets
|
Classification
|
||||||||
Operating lease right-of-use assets
|
|
$
|
|
$ | |||||
Total Lease Right-of-Use Assets
|
$ | $ | |||||||
Lease Liabilities
|
|||||||||
Operating lease liabilities
|
|
$ | $ | ||||||
Total Lease Liabilities
|
$ | $ |
December 31, 2021
|
June 30, 2021 | |||||||
Weighted-average remaining lease term
|
||||||||
Operating leases
|
||||||||
Weighted-average discount rate
|
||||||||
Operating leases
|
% |
%
|
2022
|
$
|
|
||
2023
|
|
|||
2024
|
|
|||
2025
|
|
|||
2026
|
|
|||
Thereafter
|
|
|||
Total
|
$
|
|
ITEM 2. |
MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
|
Three Months Ended December 31,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$
|
359,186
|
$
|
4,311
|
4.76
|
%
|
$
|
378,516
|
$
|
5,074
|
5.32
|
%
|
||||||||||||
Investment securities
|
96,765
|
345
|
1.41
|
60,890
|
282
|
1.84
|
||||||||||||||||||
Interest-earning deposits
|
70,847
|
30
|
0.17
|
68.242
|
24
|
0.14
|
||||||||||||||||||
Total interest-earning assets
|
$
|
526,798
|
4,686
|
3.53
|
%
|
$
|
507,648
|
5,380
|
4.20
|
%
|
||||||||||||||
Non-interest-earning assets
|
39,730
|
31,566
|
||||||||||||||||||||||
Total assets
|
$
|
566,528
|
$
|
539,214
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings accounts
|
$
|
136,482
|
101
|
0.29
|
%
|
$
|
101,802
|
153
|
0.60
|
%
|
||||||||||||||
NOW accounts
|
47,633
|
14
|
0.12
|
43,605
|
24
|
0.22
|
||||||||||||||||||
Money market accounts
|
87,012
|
26
|
0.12
|
73,316
|
65
|
0.35
|
||||||||||||||||||
Certificate accounts
|
92,477
|
334
|
1.43
|
147,322
|
635
|
1.71
|
||||||||||||||||||
Total interest bearing deposits
|
363,604
|
475
|
0.52
|
366,045
|
877
|
0.95
|
||||||||||||||||||
Other Borrowings
|
1,643
|
16
|
3.86
|
2,043
|
17
|
3.30
|
||||||||||||||||||
FHLB advances
|
857
|
10
|
4.63
|
933
|
11
|
4.68
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
366,104
|
501
|
0.54
|
%
|
$
|
369,021
|
905
|
0.97
|
%
|
||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Non-interest bearing demand accounts
|
143,686
|
114,983
|
||||||||||||||||||||||
Other liabilities
|
2,883
|
3,766
|
||||||||||||||||||||||
Total interest bearing liabilities
|
512,673
|
487,770
|
||||||||||||||||||||||
Total Stockholders’ Equity(1)
|
53,591
|
51,444
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
566,264
|
$
|
539,214
|
||||||||||||||||||||
Net interest-earning assets
|
$
|
160,694
|
$
|
138,627
|
||||||||||||||||||||
Net interest income; average interest rate spread(2)
|
$
|
4,185
|
2.99
|
%
|
$
|
4,475
|
3.23
|
%
|
||||||||||||||||
Net interest margin(3)
|
3.15
|
%
|
3.50
|
%
|
||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
143.89
|
%
|
137.57
|
%
|
(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.
|
Six Months Ended December 31,
|
||||||||||||||||||||||||
2021
|
2020
|
|||||||||||||||||||||||
Average
Balance
|
Interest
|
Average
Yield/
Rate
|
Average
Balance
|
Interest
|
Average
Yield/
Rate
|
|||||||||||||||||||
(Dollars In Thousands)
|
||||||||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$
|
351,063
|
$
|
8,708
|
4.92
|
%
|
$
|
379,377
|
$
|
9,721
|
5.08
|
%
|
||||||||||||
Investment securities
|
91,518
|
686
|
1.49
|
59,021
|
601
|
2.02
|
||||||||||||||||||
Interest-earning deposits
|
86,289
|
66
|
0.15
|
64,447
|
42
|
0.13
|
||||||||||||||||||
Total interest-earning assets
|
$
|
528,870
|
9,460
|
3.55
|
%
|
$
|
502,845
|
10,364
|
4.09
|
%
|
||||||||||||||
Non-interest-earning assets
|
37,951
|
30,744
|
||||||||||||||||||||||
Total assets
|
$
|
566,821
|
$
|
533,589
|
||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Savings accounts
|
$
|
134,811
|
208
|
0.31
|
%
|
$
|
98,211
|
311
|
0.63
|
%
|
||||||||||||||
NOW accounts
|
49,011
|
28
|
0.11
|
42,108
|
56
|
0.26
|
||||||||||||||||||
Money market accounts
|
87,002
|
51
|
0.12
|
73,248
|
141
|
0.38
|
||||||||||||||||||
Certificate accounts
|
96,920
|
717
|
1.47
|
151,821
|
1,340
|
1.75
|
||||||||||||||||||
Total interest-bearing deposits
|
367,744
|
1,004
|
0.54
|
365,388
|
1,848
|
1.00
|
||||||||||||||||||
Other bank borrowings
|
1,643
|
26
|
3.14
|
1,898
|
30
|
3.24
|
||||||||||||||||||
FHLB advances
|
857
|
21
|
4.86
|
971
|
23
|
4.70
|
||||||||||||||||||
Total interest-bearing liabilities
|
$
|
370,244
|
1,051
|
0.56
|
%
|
$
|
368,257
|
1,901
|
1.02
|
%
|
||||||||||||||
Non-interest-bearing liabilities:
|
||||||||||||||||||||||||
Non-interest bearing demand accounts
|
142,858
|
113,057
|
||||||||||||||||||||||
Other liabilities
|
839
|
1,741
|
||||||||||||||||||||||
Total liabilities
|
513,941
|
483,055
|
||||||||||||||||||||||
Total Stockholders’ Equity(1)
|
52,880
|
50,534
|
||||||||||||||||||||||
Total liabilities and equity
|
$
|
566,821
|
$
|
533,589
|
||||||||||||||||||||
Net interest-earning assets
|
$
|
158,626
|
$
|
134,588
|
||||||||||||||||||||
Net interest income; average interest rate spread(2)
|
$
|
8.409
|
2.99
|
%
|
$
|
8.463
|
3.06
|
%
|
||||||||||||||||
Net interest margin(3)
|
3.15
|
%
|
3.34
|
%
|
||||||||||||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
142.84
|
%
|
136.55
|
%
|
(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.
|
ITEM 3. |
QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK
|
(a) |
Not applicable.
|
(b) |
Not applicable.
|
(c) |
Purchases of Equity Securities
|
Period
|
Total Number of
Shares
Purchased
|
Average
Price Paid
per Share
|
Total Number of
Shares Purchased as
Part of Publicly
Announced Plans or
Programs
|
Maximum Number
of Shares that May
Yet Be Purchased
Under the Plans or
Programs (a)
|
||||||||||||
October 1, 2021 – October 31, 2021
|
59,414
|
$
|
18.97
|
-
|
56,914
|
|||||||||||
November 1, 2021 – November 30, 2021
|
20,960
|
$
|
19.36
|
-
|
35,954
|
|||||||||||
December 1, 2021 – December 31, 2021
|
34,459
|
$
|
19.52
|
-
|
1,495
|
|||||||||||
Total
|
114,833
|
$
|
19.21
|
-
|
1,495
|
(a) |
On November 18, 2020, the Company announced that its Board of Directors approved a tenth stock repurchase program for the repurchase of up to 170,000 shares
(split adjusted), or approximately 5.0% of its then outstanding shares of common stock. The repurchase program does not have an expiration date.
|
No.
|
Description
|
||
Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer
|
|||
Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer
|
|||
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)
|
HOME FEDERAL BANCORP, INC. OF LOUISIANA
|
||
Date: February 11, 2022
|
By:
|
/s/ Glen W. Brown
|
Glen W. Brown
|
||
Senior Vice President and Chief Financial Officer
|
||
(Duly authorized officer and principal financial and
accounting officer)
|
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:
|
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):
|
Date: February 11, 2022
|
/s/ James R. Barlow
|
James R. Barlow
|
|
Chairman of the Board, President and
|
|
Chief Executive Officer
|
|
(Principal Executive Officer)
|
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:
|
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):
|
Date: February 11, 2022
|
/s/ Glen W. Brown
|
Glen W. Brown
|
|
Senior Vice President and Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
Date: February 11, 2022
|
/s/ James R. Barlow
|
|
Name:
|
James R. Barlow
|
|
Title:
|
Chairman of the Board, President and
|
|
Chief Executive Officer
|
||
(Principal Executive Officer)
|
Date: February 11, 2022
|
/s/ Glen W. Brown
|
|
Name:
|
Glen W. Brown
|
|
Title:
|
Senior Vice President and Chief Financial Officer
|
|
(Principal Financial and Accounting Officer)
|
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|
ASSETS | ||
Interest-Bearing Deposits with Other Banks | $ 62,561 | $ 94,325 |
Securities Held-to-Maturity, Fair Value | 73,023 | 54,608 |
Loans Receivable, Allowance for Loan Losses | $ 4,184 | $ 4,122 |
SHAREHOLDERS' 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) | 3,398,407 | 3,350,966 |
Common Stock, Outstanding (in shares) | 3,398,407 | 3,350,966 |
CONSOLIDATED STATEMENTS OF INCOME - USD ($) |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
INTEREST INCOME | ||||
Loans, Including Fees | $ 4,311,000 | $ 5,074,000 | $ 8,708,000 | $ 9,721,000 |
Investment Securities | 0 | 1,000 | 0 | 4,000 |
Mortgage-Backed Securities | 345,000 | 281,000 | 686,000 | 597,000 |
Other Interest-Earning Assets | 30,000 | 24,000 | 66,000 | 42,000 |
Total Interest Income | 4,686,000 | 5,380,000 | 9,460,000 | 10,364,000 |
INTEREST EXPENSE | ||||
Deposits | 475,000 | 877,000 | 1,004,000 | 1,848,000 |
Other Borrowings | 16,000 | 17,000 | 26,000 | 30,000 |
Federal Home Loan Bank Borrowings | 10,000 | 11,000 | 21,000 | 23,000 |
Total Interest Expense | 501,000 | 905,000 | 1,051,000 | 1,901,000 |
Net Interest Income | 4,185,000 | 4,475,000 | 8,409,000 | 8,463,000 |
PROVISION FOR LOAN LOSSES | 61,000 | 600,000 | 61,000 | 1,300,000 |
Net Interest Income after Provision for Loan Losses | 4,124,000 | 3,875,000 | 8,348,000 | 7,163,000 |
NON-INTEREST INCOME | ||||
Gain on Sale of Loans | 710,000 | 1,207,000 | 1,420,000 | 2,618,000 |
Income on Bank Owned Life Insurance | 28,000 | 33,000 | 55,000 | 67,000 |
Service Charges on Deposit Accounts | 282,000 | 253,000 | 549,000 | 500,000 |
Other Income | 16,000 | 15,000 | 28,000 | 28,000 |
Total Non-Interest Income | 1,036,000 | 1,508,000 | 2,052,000 | 3,213,000 |
NON-INTEREST EXPENSE | ||||
Compensation and Benefits | 2,306,000 | 2,138,000 | 4,516,000 | 4,352,000 |
Occupancy and Equipment | 443,000 | 393,000 | 871,000 | 769,000 |
Data Processing | 176,000 | 201,000 | 385,000 | 395,000 |
Audit and Examination Fees | 118,000 | 63,000 | 190,000 | 129,000 |
Franchise and Bank Shares Tax | 142,000 | 89,000 | 271,000 | 198,000 |
Advertising | 70,000 | 47,000 | 144,000 | 73,000 |
Legal Fees | 105,000 | 134,000 | 205,000 | 264,000 |
Loan and Collection | 68,000 | 83,000 | 140,000 | 177,000 |
Deposit Insurance Premium | 39,000 | 38,000 | 77,000 | 68,000 |
Valuation Adjustment Real Estate Owned | 0 | 200,000 | 0 | 200,000 |
Other Expense | 217,000 | 204,000 | 420,000 | 388,000 |
Total Non-Interest Expense | 3,684,000 | 3,590,000 | 7,219,000 | 7,013,000 |
Income Before Income Taxes | 1,476,000 | 1,793,000 | 3,181,000 | 3,363,000 |
PROVISION FOR INCOME TAX EXPENSE | 300,000 | 390,000 | 653,000 | 713,000 |
Net Income | $ 1,176,000 | $ 1,403,000 | $ 2,528,000 | $ 2,650,000 |
EARNINGS PER COMMON SHARE: | ||||
Basic (in dollars per share) | $ 0.36 | $ 0.44 | $ 0.79 | $ 0.82 |
Diluted (in dollars per share) | 0.34 | 0.42 | 0.73 | 0.79 |
DIVIDENDS DECLARED (in dollars per share) | $ 0.10 | $ 0.08 | $ 0.20 | $ 0.17 |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
|
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME [Abstract] | ||||
Net Income | $ 1,176 | $ 1,403 | $ 2,528 | $ 2,650 |
Investment securities available-for-sale: | ||||
Net unrealized Losses | (235) | (75) | (270) | (331) |
Income Tax Effect | 49 | 15 | 57 | 69 |
Other Comprehensive Loss | (186) | (60) | (213) | (262) |
Total Comprehensive Income | $ 990 | $ 1,343 | $ 2,315 | $ 2,388 |
Summary of Accounting Policies |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||
Summary of Accounting Policies [Abstract] | |||||||
Summary of Accounting Policies |
1. Summary of Accounting Policies
Basis of Presentation
The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank
(“Home Federal Bank” or the “Bank”). These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of
financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring
adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended December 31, 2021 are not necessarily indicative of the results which may be expected for the
fiscal year ending June 30, 2022.
The Company follows accounting standards set by the Financial Accounting Standards
Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these
footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).
In accordance with the subsequent events topic of the ASC, the Company evaluates
events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are
recognized in the financial statements as of December 31, 2021. In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.
Use of Estimates
In preparing consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition
and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for
loan losses.
Nature of Operations
Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank
located in Shreveport, Louisiana. The Bank is a federally chartered stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. The
Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by nine 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
metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of December 31, 2021, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.
Cash and Cash Equivalents
For purposes of the Consolidated Statements of Cash Flows, cash and cash
equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.
Securities
Securities are being accounted for in accordance with Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC) 320’s, Investments which requires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity. Management determines the appropriate
classification of debt securities at the time of purchase and re-evaluates this classification periodically.
Investments in non-marketable equity securities and debt securities, in which the
Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums, and accretion of discounts, using the interest method. Investments in
debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.
Securities that are acquired and held principally for the purpose of selling in the
near term are classified as trading securities. Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale. Trading account and available-for-sale securities are carried at fair value.
Unrealized holding gains and losses on trading securities are included in earnings, while net unrealized holding gains and losses on available-for-sale debt securities are excluded from earnings and reported in other comprehensive income.
The Company held no trading securities as of December 31, 2021 and June 30, 2021.
Purchase premiums and discounts are recognized in interest income using the interest method over the term of the
securities. Securities are periodically reviewed for other-than-temporary impairment. For debt securities, management considers whether the present value of future cash flows expected to be collected are less than the security’s amortized cost
basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be
required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, if the Company does not intend to
sell the security, and it is more-likely-than-not that it will not be required to sell the security before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference
between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. A decline in value that is considered to be other-than-temporary is recorded as a
loss within noninterest income in the consolidated statement of income.
The Bank has invested in Federal Home Loan Bank (“FHLB”) stock, and other similar correspondent banks, which is
reflected at cost in these financial statements. As a member of the FHLB System, the Bank is required to purchase and maintain stock in an amount determined by the FHLB. The FHLB stock is redeemable at par value at the discretion of the FHLB.
Loans Held-for-Sale
Loans originated and intended for sale in the secondary market are carried at the
lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.
Loans
Loans receivable are stated as unpaid principal balances less allowances for loan
losses and unamortized deferred loan fees. Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment
of yield on the related interest earning assets using the interest method. Interest income on contractual loans receivable is recognized on the accrual method. Unearned discount on property improvement and automobile loans is deferred and
amortized on the interest method over the life of the loan.
Allowance for Loan Losses
The allowance for loan losses is established as losses are estimated to have
occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the
allowance.
The allowance for loan losses is evaluated on a regular basis by management and
is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value
of the underlying collateral, and prevailing economic conditions. The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A loan is considered
impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. When a loan is
impaired, the measurement of such impairment is based upon the present value of future cash flows or fair value of the collateral of the loan. If the fair value of the collateral is less than the recorded investment in the loan, the Bank
will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings. A loan is considered a troubled debt restructuring (“TDR”) if the Company, for economic or legal reasons related to a debtor’s
financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan’s
stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.
An allowance is also established for uncollectible interest on loans
classified as substandard. The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received. When, in management’s
judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.
It should be understood that estimates of future loan losses involve an
exercise of judgment. While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses
reflected in the accompanying statements of condition is adequate to absorb known and inherent losses in the existing loan portfolio both probable and reasonable to estimate. All loans greater than 90 days past due are generally placed on
nonaccrual status.
Off-Balance Sheet Credit Related Financial Instruments
In the ordinary course of business, the Bank has entered into commitments to
extend credit. Such financial instruments are recorded when they are funded.
Foreclosed Assets
Assets acquired through, or in lieu of, loan foreclosure are held-for-sale
and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure. Cost is defined as the lower of the fair value of the property or the recorded investment
in the loan. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.
Premises and Equipment
Land is carried at cost. Buildings and equipment are carried at cost less
accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows:
Bank-Owned Life Insurance
The Company has purchased life insurance contracts on the lives of certain key
employees. The Bank is the beneficiary of these policies. These contracts are reported at their cash surrender value, and changes in the cash surrender value are included in non-interest income.
Income Taxes
The Company and its wholly-owned subsidiary file a consolidated Federal income tax
return on a fiscal year basis. Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.
The Company accounts for income taxes on the asset and liability method. Deferred
tax assets and liabilities are recorded based on the difference between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates. A valuation allowance, if needed, reduces
deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although
realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of
taxes receivable or payable.
The Company follows the provisions of the Income
Taxes Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740. ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties, and disclosures required. The Company recognizes interest and penalties, if any, related to
unrecognized tax benefits in income tax expense.
While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana
Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.
Earnings per Share
Earnings per share are computed based upon the weighted average number of common
shares outstanding during the period. The Company’s basic and diluted earnings per share were $0.79 and $0.73, respectively, for the six months ended December 31, 2021 compared to basic and diluted earnings per share (split adjusted) of $0.82 and $0.79, respectively, for the six
months ended December 31, 2020.
Non-Direct Response Advertising
The Company expenses all advertising costs, except for direct-response
advertising, as incurred. Non-direct response advertising costs were $144,000 and $73,000 for the six months ended December 31, 2021 and 2020, respectively.
In the event the Company incurs expense for material direct-response advertising,
it will be amortized over the estimated benefit period. Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in
probable future benefits. For the three months ended December 31, 2021 and 2020, the Company did not incur any amount of
direct-response advertising.
Stock-Based Compensation
GAAP requires all share-based payments to employees, including grants of employee
stock options and share awards, to be recognized as expense in the statement of operations based on their fair values. The amount of compensation is measured at the fair value of the options or share awards when granted, and this cost is expensed
over the required service period, which is normally the vesting period of the options or share awards.
Reclassification
Certain financial statement balances included in the prior
year consolidated financial statements have been reclassified to conform to the current period presentation.
Comprehensive Income
Accounting principles generally accepted in the United
States of America require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale debt securities, are reported
as a separate component of the equity section of the consolidated balance sheets along with net income, they are components of comprehensive income (loss).
Recent Accounting
Pronouncements
In June 2016, the FASB issued ASU 2016-13, Financial
Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses
and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning
after December 15, 2022, including interim periods with those fiscal years. The extent of the impact upon adoption is not known and will depend on the characteristics of the Company’s loan portfolio and economic conditions on that date as well
as forecasted conditions thereafter. The Company has established an implementation team and are in the process of engaging third-party consultants who have jointly
developed a project plan to provide implementation oversight. The Company is in the process of developing and implementing current expected credit loss model that satisfy the requirements of ASU 2016-13. The future adoption of this ASU may have
a material effect on the Company’s consolidated financial statements.
In March 2020, the FASB
issued No. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January of 2021, issued No. ASU 2021-01, Reference Rate Reform (Topic 848). These ASUs are effective
as of March 12, 2020 through December 31, 2022. The adoption of these ASU’s is not expected to have a significant impact on the financial position or results of operations of the Company. The Company will be replacing the LIBOR index with
the 1 Year Treasury-bill rate and all customers will be notified.
|
Securities |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities |
2. Securities
The amortized cost and fair value of securities with gross
unrealized gains and losses follows:
The amortized cost and fair value of securities by contractual maturity at
December 31, 2021 follows:
Securities held-to-maturity totaling $24.8 million were purchased during the three months ending December 31, 2021.
The following tables show information pertaining to
gross unrealized losses on securities available-for-sale and held-to-maturity at December 31, 2021 and June 30, 2021 aggregated by investment category and length of time that individual securities have been in a continuous loss position.
The unrealized losses on the Company’s investment in
mortgage-backed securities at December 31, 2021 and June 30, 2021 were caused by interest rate changes. The contractual cash flows of these investments are guaranteed by agencies of the U.S. Government. Accordingly, it is expected that
these securities would not be settled at a price less than the amortized cost of the Company’s investment. Because the decline in market value is attributable to changes in interest rates and not credit quality and because the Company has
the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2021.
The Company’s investment in equity securities
consists primarily of FHLB stock and shares of First National Bankers Bankshares, Inc. (“FNBB”). Management monitors its investment portfolio to determine whether any investment securities which have unrealized losses should be considered
other than temporarily impaired.
At December 31, 2021, securities with a carrying
value of $727,000 were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $174.5 million were pledged to secure FHLB advances.
|
Loans Receivable |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable |
3. Loans Receivable
Loans receivable are summarized as
follows:
Following is a summary of changes in the
allowance for loan losses:
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 cost to acquire and sell the underlying collateral in a timely manner.
Pass Watch - Loans are
considered marginal, meaning some weakness has been identified which could cause future impairment of repayment. However, these relationships are currently protected from any apparent loss by collateral.
Special Mention - Loans
identified as special mention have a potential weakness that deserves management’s close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the loan or of the institution’s
credit position at some future date.
Substandard - Loans
classified as substandard are inadequately protected by the current net worth and payment capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the
liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful - Loans classified
as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly
questionable and improbable.
Loss - This classification
includes those loans which are considered uncollectible and of such little value that their continuance as loans is not warranted. Even though partial recovery may be possible in the future, it is not practical or desirable to defer writing off
these basically worthless loans. Accordingly, these loans are charged-off before period end.
The following
tables present the grading of loans, segregated by class of loans, as of December 31, 2021 and June 30, 2021:
Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when contractually due. Loans
that experience insignificant payment delays or payment shortfalls are generally not classified as impaired. On a case-by-case basis, management determines the significance of payment delays and payment shortfalls, taking into
consideration all of the circumstances related to the loan, including the length of the payment delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest
owed.
The following tables present an aging
analysis of past due loans, segregated by class of loans, as of December 31, 2021 and June 30, 2021:
There was no interest income recognized on non-accrual loans during the six months ended December 31, 2021 or year ended June 30, 2021. If the non-accrual
loans had been accruing interest at their original contracted rates, gross interest income that would have been recorded for the six months ended December 31, 2021 and the year ended June 30, 2021 was approximately $20,000 and $63,000, respectively.
The change in the allowance for loan losses by
loan portfolio class and recorded investment in loans for the three months ended December 31, 2021 and year ended June 30, 2021 was as follows:
The following tables present loans individually evaluated for
impairment, segregated by class of loans, as of December 31, 2021 and June 30, 2021:
The Bank has no commitments to loan additional funds to borrowers
whose loans were previously in non-accrual status. As of December 31, 2021, there were no residential loans in foreclosure or in the process of foreclosure.
A troubled debt restructuring (“TDR”) is a restructuring of a debt
made by the Company to a debtor for economic or legal reasons related to the debtor’s financial difficulties that it would not otherwise consider. The Company grants the concession in an attempt to protect as much of its investment as possible.
Information about the Company’s TDRs is as follows (in thousands):
For purposes of the determination of an allowance for loan losses on
these TDRs, as an identified TDR, the Company considers a loss probable on the loan and, as a result, the loan is reviewed for specific impairment in accordance with the Company’s allowance for loan loss methodology. If it is determined losses
are probable on such TDRs, either because of delinquency or other credit quality indicator, the Company establishes specific reserves for these loans. As of December 31, 2021, there were no commitments to lend additional funds to debtors owing sums to the Company whose terms have been modified in TDRs.
The Company had no trouble debt restructuring that has subsequently defaulted in the last 12 months.
Loan Modifications/Troubled Debt Restructurings.
Under the CARES Act, loans less than 30 days past due as of December 31, 2019 will be considered current for COVID-19 modifications. A financial institution can then suspend the requirements under GAAP for loan modifications related to COVID-19
that would otherwise be categorized as a troubled debt restructuring (“TDR”), and suspend any determination of a loan modified as a result of COVID-19 as being a TDR, including the requirement to determine impairment for accounting purposes.
Financial institutions wishing to utilize this authority must make a policy election, which applies to any COVID-19 modification made between March 1, 2020 and the earlier of either January 1, 2022 or the 60th day after the end of the COVID-19
national emergency. Home Federal Bank has made that election. Similarly, the Financial Accounting Standards Board has confirmed that short-term modifications made on a good-faith basis in response to COVID-19 to loan customers who were current
prior to any relief will not be considered TDRs.
Prior to the enactment of the CARES Act, the banking regulatory
agencies provided guidance as to how certain short-term modifications would not be considered TDRs, and have subsequently confirmed that such guidance could be applicable for loans that do not qualify for favorable accounting treatment under
Section 4013 of the CARES Act.
|
Deposits |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits |
4. Deposits
Deposits at December 31, 2021 and June 30, 2021 consist of the following classifications:
|
Earnings Per Share |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share |
5. Earnings Per Share
Home Federal Bank announced that its Board of Directors declared a two-for-one stock split in the form of a 100%
stock dividend, payable March 31, 2021, to stockholders of record as of March 22, 2021. Under the terms of the stock split, the Company’s stockholders received a dividend of one share for every share held on the record date. The dividend was paid in authorized but unissued shares of common stock of the Company. The par value of the Company’s stock was
not affected by the split and will remain at $0.01 per share. The outstanding shares of stock after the split increased from
approximately 1.7 million shares to 3.4 million shares.
Basic earnings per common share are
computed based on the weighted average number of shares outstanding. Diluted earnings per share is computed based on the weighted average number of shares outstanding and common share equivalents that would arise from the exercise of
dilutive securities.
Earnings per share for the three and six months ended December 31, 2021 and 2020 were calculated as follows:
For the three months ended December 31,
2021 and 2020, there were outstanding options to purchase 637,281 and 619,566 shares, respectively, at a weighted average exercise price of $11.03
and $9.92 per share, respectively, and for the six months ended December 31, 2021 and 2020, there were outstanding options to
purchase 594,364 and 576,508
shares, respectively, at a weighted average exercise price of $11.03 and $9.92 per share, respectively. For the quarter ended December 31, 2021 and 2020, 245,971
options and 134,600 options, respectively, were included in the computation of diluted earnings per share. For the six month
period ended December 31, 2021 and 2020, 259,807 options and 113,536 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:
|
Stock-Based Compensation |
6 Months Ended |
---|---|
Dec. 31, 2021 | |
Stock-Based Compensation [Abstract] | |
Stock-Based Compensation |
6. Stock-Based Compensation
Stock
Option Plan
On
August 10, 2005, the shareholders of the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2005 Stock Option Plan (the “2005 Option Plan”) for the benefit of directors, officers, and other key employees. The
aggregate number of shares of common stock reserved for issuance under the 2005 Option Plan totaled 317,736 (as adjusted). Both
incentive stock options and non-qualified stock options may be granted under the 2005 Option Plan. The 2005 Stock Option Plan terminated on June 8, 2015, however, the 866 outstanding options as of December 31, 2021 will remain in effect for the remainder of
their original ten year terms.
On December 23, 2011, the shareholders of
the Company approved the establishment of the Home Federal Bancorp, Inc. of Louisiana 2011 Stock Option Plan (the “2011 Option Plan,” together with the 2005 Option Plan, the “Option Plans”) for the benefit of directors, officers, and other
key employees. The aggregate number of shares of common stock reserved for issuance under the 2011 Option Plan totaled 389,044.
Both incentive stock options and non-qualified stock options may be granted under the 2011 Option Plan.The 2011 Option Plan terminated on December 23, 2021, however, the outstanding options will remain in effect for the remainder of their original ten year
terms.
Incentive
stock options and non-qualified stock options granted under the Option Plans become vested and exercisable at a rate of 20% per year
over five years, commencing one year
from the date of the grant, with an additional 20% vesting on each successive anniversary of the date the option was granted. No
vesting shall occur after an employee’s employment or service as a director is terminated. In the event of death or disability of an employee or director or change in control of the Company, the unvested options shall become vested and
exercisable. The Company recognizes compensation expense during the vesting period based on the fair value of the option on the date of the grant.
Stock
Incentive Plan
On
November 12, 2014, the shareholders of the Company approved the adoption of the Company’s 2014 Stock Incentive Plan (the “2014 Stock Incentive Plan”) for the benefit of employees and non-employee directors as an incentive to contribute to the
success of the Company and reward employees for outstanding performance and the attainment of targeted goals. The 2014 Stock Incentive Plan covers a total of 300,000 shares, of which no more than 74,000 shares, or 25% of the plan, may be share rewards. The balance of the plan is reserved for stock option awards which would total 225,000 stock options, assuming all the share awards are issued. All incentive stock options granted under the 2014 Stock Incentive Plan are
intended to comply with the requirements of Section 422 of the Internal Revenue Code. On October 26, 2015, the Company granted a total of 69,000
plan share awards and 207,000 stock options to directors, officers, and other key employees vesting ratably over five years. On February 5, 2019, the Company granted a total of 6,000 plan share awards and 27,000 stock options (which includes 9,000 stock options forfeited from the October 26, 2015 grants) to key employees vesting ratably over five years.
On November 13,
2019, the shareholders of the Company approved the adoption of the Company’s 2019 Stock Incentive Plan (the “2019 Stock Incentive Plan,” together with the 2014 Stock Incentive Plan, the “Stock Incentive Plans”) which provides for a total of 250,000 shares reserved for future issuance as stock awards or stock options. No more than 62,500 shares, or 25%, may be granted as stock awards.
The balance of the plan is reserved for stock option awards. On November 11, 2020, the Company granted a total of 62,500 plan share
awards and 187,500 stock options to directors, officers and other key employees vesting ratably over five years. The Stock Incentive Plans costs are recognized over the five year vesting period. As of December 31, 2021, there were 1,200 plan share awards and 5,400
stock options available for future grant under the Stock Incentive Plans.
Compensation
expense pertaining to the 2011 Recognition Plan and the share awards under the Stock Incentive Plans was $107,000 and $134,000 for the six months ended December 31, 2021 and 2020, respectively. For the three months ended December 31, 2021 and 2020, compensation
expense charged to operations for stock options granted under the 2011 Option Plan and the Stock Incentive Plans was $52,000 and $55,000, respectively.
|
Related Party Transactions |
6 Months Ended |
---|---|
Dec. 31, 2021 | |
Related Party Transactions [Abstract] | |
Related Party Transactions |
7. Related Party Transactions
Certain directors and
executive officers were indebted to the Bank in the approximate aggregate amounts of $3.0 million and $3.4 million at December 31, 2021 and June 30, 2021, respectively.
|
Fair Value Disclosures |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures |
8. Fair Value Disclosures
The following disclosure is made in accordance with the requirements
of ASC 825, Financial Instruments. Financial instruments are defined as cash and contractual rights and obligations that require settlement, directly or indirectly, in cash. In cases where quoted market prices are not available, fair values
have been estimated using the present value of future cash flows or other valuation techniques. The results of these techniques are highly sensitive to the assumptions used, such as those concerning appropriate discount rates and estimates of
future cash flows, which require considerable judgment. Accordingly, estimates presented herein are not necessarily indicative of the amounts the Company could realize in a current settlement of the underlying financial instruments.
ASC 825 excludes certain financial instruments and all nonfinancial
instruments from its disclosure requirements. These disclosures should not be interpreted as representing an aggregate measure of the underlying value of the Company.
The following methods and assumptions were used by the Company in
estimating fair values of financial instruments:
Cash and
Cash Equivalents
The carrying amount
approximates the fair value of cash and cash equivalents.
Investment Securities
Fair values for investment securities, including
mortgage-backed securities, are based on quoted market prices, where available. If quoted market prices are not available, fair values are based on quoted market prices of comparable instruments. The carrying values of restricted or
non-marketable equity securities approximate their fair values. The carrying amount of accrued investment income approximates its fair value.
Mortgage
Loans Held-for-Sale
Because these loans are normally disposed of
within ninety days of origination, their carrying value closely approximates the fair value of such loans.
Loans Receivable
For variable-rate loans that
re-price frequently and with no significant changes in credit risk, fair value approximates the carrying value. Fair values for other loans are estimated using the discounted value of expected future cash flows. Interest rates used are those
being offered currently for loans with similar terms to borrowers of similar credit quality. The carrying amount of accrued interest receivable approximates its fair value.
Deposit Liabilities
The fair values for demand deposit accounts
are, by definition, equal to the amount payable on demand at the reporting date, that is, their carrying amounts. Fair values for other deposit accounts are estimated using the discounted value of expected future cash flows. The discount rate
is estimated using the rates currently offered for deposits of similar maturities.
Advances from Federal Home
Loan Bank
The carrying amount of short-term borrowings
approximates their fair value. The fair value of long-term debt is estimated using discounted cash flow analyses based on current incremental borrowing rates for similar borrowing arrangements.
Off-Balance Sheet
Credit-Related Instruments
Fair values for outstanding mortgage loan
commitments to lend are based on fees currently charged to enter into similar agreements, taking into account the remaining term of the agreements, customer credit quality, and changes in lending rates.
The fair value of interest rate floors and caps
contained in some loan servicing agreements and variable rate mortgage loan contracts are considered immaterial within the context of fair value disclosure requirements. Accordingly, no fair value estimate is provided for these instruments.
At December 31, 2021 and June 30, 2021, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:
The estimated fair values presented above could be materially
different than net realizable value and are only indicative of the individual financial instrument’s fair value. Accordingly, these estimates should not be considered an indication of the fair value of the Company taken as a whole.
The Company follows the guidance of FASB ASC Topic 820, Fair Value Measurements and Disclosures (“ASC 820”). ASC 820 affirms a framework for measuring fair value and expands disclosures about fair value measurements. ASC 820 was issued to establish a uniform
definition of fair value. The definition of fair value is market-based as opposed to company-specific and includes the following:
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:
A financial instrument’s categorization within the valuation hierarchy
is based upon the lowest level of input that is significant to the fair value measurement.
The preceding methods described may produce a fair value calculation
that may not be indicative of the net realizable value or reflective of future fair values. Furthermore, although the Company believes its valuation methods are appropriate and consistent with other market participants, the use of different
methodologies or assumptions to determine the fair value of certain financial instruments could result in a different fair value measurement at the reporting date. There have been no changes in the methodologies used during the six months ended
December 31, 2021.
Fair values of assets and liabilities measured on a recurring basis at
December 31, 2021 and June 30, 2021 are as follows:
|
Leases |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases |
9. Leases
A lease is defined as
a contract, or part of a contract, that conveys the right to control the use of identified property, plant or equipment for a period of time in exchange for consideration. On July 1, 2019, the Company adopted ASU No. 2016-02 “Leases” (Topic
842) and all subsequent ASUs that modified Topic 842. For the Company, Topic 842 primarily affected the accounting treatment for operating lease agreements in which the Company is the lessee. Substantially all of the leases in which the Company
is the lessee are comprised of real estate property for branches with terms extending through 2058. Substantially all of the Company’s leases are classified as operating leases, and therefore, were previously not recognized on the Company’s
consolidated statements of condition. With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities.
The calculated amount
of the ROU assets and lease liabilities in the table above are impacted by the length of the lease term and the discount rate used to present value the minimum lease payments. The Company’s lease agreements often include one or more options to
renew at the Company’s discretion. If at lease inception, the Company considers the exercising of a renewal option to be reasonably certain, the Company will include the extended term in the calculation of the ROU asset and lease liability.
Regarding the discount rate, Topic 842 requires the use of the rate implicit in the lease whenever this rate is readily determinable. As this rate is rarely determinable, the Company utilizes its incremental borrowing rate at lease inception,
on a collateralized basis, over a similar term. For operating leases existing prior to July 1, 2019, the rate for the remaining lease term as of July 1, 2019, was the Company’s only finance
lease, the Company utilized its incremental borrowing rate at lease inception.
At December 31, 2021, the Company’s lease ROU assets and related lease liabilities were $851,000 and $8744,000, respectively, and have a remaining term of
36.9 years, including extension options if the Company is reasonably certain they will be exercised.
Future minimum lease payments due under non-cancelable operating leases at December 31, 2021 are presented below (dollars in thousands).
|
Subsequent Events |
6 Months Ended |
---|---|
Dec. 31, 2021 | |
Subsequent Events [Abstract] | |
Subsequent Events |
10. Subsequent Events
There have been no subsequent events that have
occurred after December 31, 2021, through the date of the financial statements, that would require disclosure or have an adverse impact on the financial statement.
|
Summary of Accounting Policies (Policies) |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||
Summary of Accounting Policies [Abstract] | |||||||
Basis of Presentation |
Basis of Presentation
The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the “Company”) and its subsidiary, Home Federal Bank
(“Home Federal Bank” or the “Bank”). These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of
financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring
adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the three month period ended December 31, 2021 are not necessarily indicative of the results which may be expected for the
fiscal year ending June 30, 2022.
The Company follows accounting standards set by the Financial Accounting Standards
Board (the “FASB”). The FASB sets generally accepted accounting principles (“GAAP”) that we follow to ensure we consistently report our financial condition, results of operations, and cash flows. References to GAAP issued by the FASB in these
footnotes are to the FASB Accounting Standards Codification (the “Codification” or the “ASC”).
In accordance with the subsequent events topic of the ASC, the Company evaluates
events and transactions that occur after the balance sheet date for potential recognition in the financial statements. The effect of all subsequent events that provide additional evidence of conditions that existed at the balance sheet date are
recognized in the financial statements as of December 31, 2021. In preparing these financial statements, the Company evaluated the events and transactions that occurred through the date these financial statements were issued.
|
||||||
Use of Estimates |
Use of Estimates
In preparing consolidated financial statements in conformity with accounting
principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition
and reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for
loan losses.
|
||||||
Nature of Operations |
Nature of Operations
Home Federal Bancorp, Inc. of Louisiana, a Louisiana corporation, is the fully public stock holding company for Home Federal Bank
located in Shreveport, Louisiana. The Bank is a federally chartered stock savings and loan association and is subject to federal regulation by the Federal Deposit Insurance Corporation and the Office of the Comptroller of the Currency. The
Company is a savings and loan holding company regulated by the Board of Governors of the Federal Reserve System. Services are provided to the Bank’s customers by nine 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
metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of December 31, 2021, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.
|
||||||
Cash and Cash Equivalents |
Cash and Cash Equivalents
For purposes of the Consolidated Statements of Cash Flows, cash and cash
equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.
|
||||||
Securities |
Securities
Securities are being accounted for in accordance with Financial Accounting Standards
Board (FASB) Accounting Standards Codification (ASC) 320’s, Investments which requires the classification of securities into one of three categories: Trading, Available-for-Sale, or Held-to-Maturity. Management determines the appropriate
classification of debt securities at the time of purchase and re-evaluates this classification periodically.
Investments in non-marketable equity securities and debt securities, in which the
Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at cost, adjusted for amortization of the related premiums, and accretion of discounts, using the interest method. Investments in
debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.
Securities that are acquired and held principally for the purpose of selling in the
near term are classified as trading securities. Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale. Trading account and available-for-sale securities are carried at fair value.
Unrealized holding gains and losses on trading securities are included in earnings, while net unrealized holding gains and losses on available-for-sale debt securities are excluded from earnings and reported in other comprehensive income.
The Company held no trading securities as of December 31, 2021 and June 30, 2021.
Purchase premiums and discounts are recognized in interest income using the interest method over the term of the
securities. Securities are periodically reviewed for other-than-temporary impairment. For debt securities, management considers whether the present value of future cash flows expected to be collected are less than the security’s amortized cost
basis (the difference defined as the credit loss), the magnitude and duration of the decline, the reasons underlying the decline and the Company’s intent to sell the security or whether it is more likely than not that the Company would be
required to sell the security before its anticipated recovery in market value, to determine whether the loss in value is other than temporary. If a decline in value is determined to be other than temporary, if the Company does not intend to
sell the security, and it is more-likely-than-not that it will not be required to sell the security before recovery of the security’s amortized cost basis, the charge to earnings is limited to the amount of credit loss. Any remaining difference
between fair value and amortized cost (the difference defined as the non-credit portion) is recognized in other comprehensive income, net of applicable taxes. A decline in value that is considered to be other-than-temporary is recorded as a
loss within noninterest income in the consolidated statement of income.
The Bank has invested in Federal Home Loan Bank (“FHLB”) stock, and other similar correspondent banks, which is
reflected at cost in these financial statements. As a member of the FHLB System, the Bank is required to purchase and maintain stock in an amount determined by the FHLB. The FHLB stock is redeemable at par value at the discretion of the FHLB.
|
||||||
Loans Held-for-Sale |
Loans Held-for-Sale
Loans originated and intended for sale in the secondary market are carried at the
lower of cost or estimated fair value in the aggregate. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.
|
||||||
Loans |
Loans
Loans receivable are stated as unpaid principal balances less allowances for loan
losses and unamortized deferred loan fees. Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment
of yield on the related interest earning assets using the interest method. Interest income on contractual loans receivable is recognized on the accrual method. Unearned discount on property improvement and automobile loans is deferred and
amortized on the interest method over the life of the loan.
|
||||||
Allowance for Loan Losses |
Allowance for Loan Losses
The allowance for loan losses is established as losses are estimated to have
occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the
allowance.
The allowance for loan losses is evaluated on a regular basis by management and
is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value
of the underlying collateral, and prevailing economic conditions. The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. A loan is considered
impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement. When a loan is
impaired, the measurement of such impairment is based upon the present value of future cash flows or fair value of the collateral of the loan. If the fair value of the collateral is less than the recorded investment in the loan, the Bank
will recognize the impairment by creating a valuation allowance with a corresponding charge against earnings. A loan is considered a troubled debt restructuring (“TDR”) if the Company, for economic or legal reasons related to a debtor’s
financial difficulties, grants a concession to the debtor that it would not otherwise consider. Concessions granted under a TDR typically involve a temporary or permanent reduction in payments or interest rate or an extension of a loan’s
stated maturity date at less than a current market rate of interest. Loans identified as TDRs are designated as impaired.
An allowance is also established for uncollectible interest on loans
classified as substandard. The allowance is established by a charge to interest income equal to all interest previously accrued and income is subsequently recognized only to the extent that cash payments are received. When, in management’s
judgment, the borrower’s ability to make periodic interest and principal payments is back to normal, the loan is returned to accrual status.
It should be understood that estimates of future loan losses involve an
exercise of judgment. While it is possible that in particular periods the Company may sustain losses which are substantial relative to the allowance for loan losses, it is the judgment of management that the allowance for loan losses
reflected in the accompanying statements of condition is adequate to absorb known and inherent losses in the existing loan portfolio both probable and reasonable to estimate. All loans greater than 90 days past due are generally placed on
nonaccrual status.
|
||||||
Off-Balance Sheet Credit Related Financial Instruments |
Off-Balance Sheet Credit Related Financial Instruments
In the ordinary course of business, the Bank has entered into commitments to
extend credit. Such financial instruments are recorded when they are funded.
|
||||||
Foreclosed Assets |
Foreclosed Assets
Assets acquired through, or in lieu of, loan foreclosure are held-for-sale
and are transferred to other real estate owned at the lower of cost or current fair value minus estimated cost to sell as of the date of foreclosure. Cost is defined as the lower of the fair value of the property or the recorded investment
in the loan. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less cost to sell.
|
||||||
Premises and Equipment |
Premises and Equipment
Land is carried at cost. Buildings and equipment are carried at cost less
accumulated depreciation computed on the straight-line method over the estimated useful lives of the assets. Estimated useful lives are as follows:
|
||||||
Bank-Owned Life Insurance |
Bank-Owned Life Insurance
The Company has purchased life insurance contracts on the lives of certain key
employees. The Bank is the beneficiary of these policies. These contracts are reported at their cash surrender value, and changes in the cash surrender value are included in non-interest income.
|
||||||
Income Taxes |
Income Taxes
The Company and its wholly-owned subsidiary file a consolidated Federal income tax
return on a fiscal year basis. Each entity pays its pro-rata share of income taxes in accordance with a written tax-sharing agreement.
The Company accounts for income taxes on the asset and liability method. Deferred
tax assets and liabilities are recorded based on the difference between the tax basis of assets and liabilities and their carrying amounts for financial reporting purposes, computed using enacted tax rates. A valuation allowance, if needed, reduces
deferred tax assets to the expected amount most likely to be realized. Realization of deferred tax assets is dependent upon the generation of a sufficient level of future taxable income and recoverable taxes paid in prior years. Although
realization is not assured, management believes it is more likely than not that all of the deferred tax assets will be realized. Current taxes are measured by applying the provisions of enacted tax laws to taxable income to determine the amount of
taxes receivable or payable.
The Company follows the provisions of the Income
Taxes Topic of the Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) 740. ASC 740 prescribes a recognition threshold and measurement attribute for financial statement recognition and measurement of a tax
position taken or expected to be taken in a tax return and also provides guidance on various related matters such as derecognition, interest, penalties, and disclosures required. The Company recognizes interest and penalties, if any, related to
unrecognized tax benefits in income tax expense.
While the Bank is exempt from Louisiana income tax, it is subject to the Louisiana
Ad Valorem Tax, commonly referred to as the Louisiana Shares Tax, which is based on stockholders’ equity and net income.
|
||||||
Earnings per Share |
Earnings per Share
Earnings per share are computed based upon the weighted average number of common
shares outstanding during the period. The Company’s basic and diluted earnings per share were $0.79 and $0.73, respectively, for the six months ended December 31, 2021 compared to basic and diluted earnings per share (split adjusted) of $0.82 and $0.79, respectively, for the six
months ended December 31, 2020.
|
||||||
Non-Direct Response Advertising |
Non-Direct Response Advertising
The Company expenses all advertising costs, except for direct-response
advertising, as incurred. Non-direct response advertising costs were $144,000 and $73,000 for the six months ended December 31, 2021 and 2020, respectively.
In the event the Company incurs expense for material direct-response advertising,
it will be amortized over the estimated benefit period. Direct-response advertising consists of advertising whose primary purpose is to elicit sales to customers who could be shown to have responded specifically to the advertising and results in
probable future benefits. For the three months ended December 31, 2021 and 2020, the Company did not incur any amount of
direct-response advertising.
|
||||||
Stock-Based Compensation |
Stock-Based Compensation
GAAP requires all share-based payments to employees, including grants of employee
stock options and share awards, to be recognized as expense in the statement of operations based on their fair values. The amount of compensation is measured at the fair value of the options or share awards when granted, and this cost is expensed
over the required service period, which is normally the vesting period of the options or share awards.
|
||||||
Reclassification |
Reclassification
Certain financial statement balances included in the prior
year consolidated financial statements have been reclassified to conform to the current period presentation.
|
||||||
Comprehensive Income |
Comprehensive Income
Accounting principles generally accepted in the United
States of America require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale debt securities, are reported
as a separate component of the equity section of the consolidated balance sheets along with net income, they are components of comprehensive income (loss).
|
||||||
Recent Accounting Pronouncements |
Recent Accounting
Pronouncements
In June 2016, the FASB issued ASU 2016-13, Financial
Instruments – Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses
and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning
after December 15, 2022, including interim periods with those fiscal years. The extent of the impact upon adoption is not known and will depend on the characteristics of the Company’s loan portfolio and economic conditions on that date as well
as forecasted conditions thereafter. The Company has established an implementation team and are in the process of engaging third-party consultants who have jointly
developed a project plan to provide implementation oversight. The Company is in the process of developing and implementing current expected credit loss model that satisfy the requirements of ASU 2016-13. The future adoption of this ASU may have
a material effect on the Company’s consolidated financial statements.
In March 2020, the FASB
issued No. ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting and in January of 2021, issued No. ASU 2021-01, Reference Rate Reform (Topic 848). These ASUs are effective
as of March 12, 2020 through December 31, 2022. The adoption of these ASU’s is not expected to have a significant impact on the financial position or results of operations of the Company. The Company will be replacing the LIBOR index with
the 1 Year Treasury-bill rate and all customers will be notified.
|
Summary of Accounting Policies (Tables) |
6 Months Ended | ||||||
---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||
Summary of Accounting Policies [Abstract] | |||||||
Estimated Useful Lives | Estimated useful lives are as follows:
|
Securities (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Securities, with Gross Unrealized Gains and Losses |
The amortized cost and fair value of securities with gross
unrealized gains and losses follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost and Fair Value of Securities by Contractual Maturity |
The amortized cost and fair value of securities by contractual maturity at
December 31, 2021 follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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 December 31, 2021 and June 30, 2021 aggregated by investment category and length of time that individual securities have been in a continuous loss position.
|
Loans Receivable (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Receivable |
Loans receivable are summarized as
follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Analysis of Allowance for Loan Losses |
Following is a summary of changes in the
allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Grading of Loans, Segregated by Class of Loans |
The following
tables present the grading of loans, segregated by class of loans, as of December 31, 2021 and June 30, 2021:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Aging Analysis of Past Due Loans Segregated by Class of Loans |
The following tables present an aging
analysis of past due loans, segregated by class of loans, as of December 31, 2021 and June 30, 2021:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Allowance for Loan Losses and Recorded Investment in Loans |
The change in the allowance for loan losses by
loan portfolio class and recorded investment in loans for the three months ended December 31, 2021 and year ended June 30, 2021 was as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loans Individually Evaluated for Impairment Segregated by Class of Loans |
The following tables present loans individually evaluated for
impairment, segregated by class of loans, as of December 31, 2021 and June 30, 2021:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Information about TDRs |
Information about the Company’s TDRs is as follows (in thousands):
|
Deposits (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Deposits |
Deposits at December 31, 2021 and June 30, 2021 consist of the following classifications:
|
Earnings Per Share (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Calculation of Earnings per Share |
Earnings per share for the three and six months ended December 31, 2021 and 2020 were calculated as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Weighted Average Outstanding Shares |
The following table presents the components of weighted average
outstanding shares for purposes of calculating earnings per share:
|
Fair Value Disclosures (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Carrying Amount and Estimated Fair Values of Financial Instruments |
At December 31, 2021 and June 30, 2021, the carrying amount and estimated fair values of the Company’s financial instruments were as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Values of Assets and Liabilities Measured on a Recurring Basis |
Fair values of assets and liabilities measured on a recurring basis at
December 31, 2021 and June 30, 2021 are as follows:
|
Leases (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Dec. 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Right-of-Use Assets and Lease Liabilities | With the adoption of Topic 842, operating lease agreements are required to be recognized on the consolidated statements of condition as right-of-use (“ROU”) assets and corresponding lease liabilities.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Weighted-Average Remaining Lease Term and Discount rate | For operating leases existing prior to July 1, 2019, the rate for the remaining lease term as of July 1, 2019, was the Company’s only finance
lease, the Company utilized its incremental borrowing rate at lease inception.
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Future Minimum Lease Payments Due under Non-Cancelable Operating Leases |
Future minimum lease payments due under non-cancelable operating leases at December 31, 2021 are presented below (dollars in thousands).
|
Loans Receivable, Analysis of Allowance for Loan Losses (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|---|
Dec. 31, 2021 |
Dec. 31, 2020 |
Dec. 31, 2021 |
Dec. 31, 2020 |
Jun. 30, 2021 |
|
Summary of changes in the allowance for loan losses [Roll Forward] | |||||
Beginning Balances | $ 4,122 | $ 4,081 | $ 4,081 | ||
Provision for Loan Losses | $ 61 | $ 600 | 61 | 1,300 | 1,800 |
Loan Charge-Offs | (8) | (1,646) | (1,961) | ||
Recoveries | 9 | 55 | 202 | ||
Ending Balances | $ 4,184 | $ 3,790 | $ 4,184 | $ 3,790 | $ 4,122 |
Deposits (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|
Summary of Deposits [Abstract] | ||
Non-Interest Bearing | $ 142,001 | $ 131,014 |
NOW Accounts | 56,287 | 49,262 |
Money Markets | 90,572 | 88,181 |
Passbook Savings | 138,925 | 129,130 |
Total transaction accounts | 427,785 | 397,587 |
Certificates of Deposit | 84,389 | 109,009 |
Total Deposits | $ 512,174 | $ 506,596 |
Stock-Based Compensation, Stock Option Plan (Details) - shares |
6 Months Ended | ||
---|---|---|---|
Dec. 31, 2021 |
Dec. 23, 2011 |
Aug. 10, 2005 |
|
Stock Options [Member] | |||
Stock Option Plans [Abstract] | |||
Incentive stock options and non-qualified stock options, vested and exercisable | 20.00% | ||
Award vesting period | 5 years | ||
Commencement period of incentive and non-qualified options | 1 year | ||
Additional percentage vested on each successive anniversary | 20.00% | ||
2005 Stock Option Plan [Member] | |||
Stock Option Plans [Abstract] | |||
Aggregate number of shares of common stock reserved for future issuance (in shares) | 317,736 | ||
Termination date | Jun. 08, 2015 | ||
Outstanding stock options (in shares) | 866 | ||
Term of share-based payment award | 10 years | ||
2011 Stock Option Plan [Member] | |||
Stock Option Plans [Abstract] | |||
Aggregate number of shares of common stock reserved for future issuance (in shares) | 389,044 | ||
Termination date | Dec. 23, 2021 | ||
Term of share-based payment award | 10 years |
Related Party Transactions (Details) - USD ($) $ in Millions |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|
Related Party Transactions [Abstract] | ||
Loan made to directors and executive officers | $ 3.0 | $ 3.4 |
Leases (Details) - USD ($) $ in Thousands |
Dec. 31, 2021 |
Jun. 30, 2021 |
---|---|---|
Lease Right-of-Use Assets [Abstract] | ||
Operating lease right-of-use assets | $ 851 | $ 858 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other Assets | Other Assets |
Lease Liabilities [Abstract] | ||
Operating lease liabilities | $ 874 | $ 876 |
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 | 36 years 10 months 24 days | 37 years 4 months 24 days |
Weighted-average discount rate [Abstract] | ||
Operating leases | 3.00% | 3.00% |
Future minimum lease payments due under non-cancelable operating leases [Abstract] | ||
2022 | $ 31 | |
2023 | 31 | |
2024 | 31 | |
2025 | 31 | |
2026 | 31 | |
Thereafter | 719 | |
Total | $ 874 |
^..R3[$[GKL0_RPX[ /"<9Z?Z/6
MWVC0WXIG0-& Q[RJLK7S P\;_A86&))
MEHF3!XD*)[2GT&2*F ESGOE=)P)I"?:PB42/&F>>UL*_%LJT0AX@!$ ([8(*
M-%YL;Q<:0Y?PYK%A> *'77#T"KN6A
MGTX8R3(_RB*RY%K;::-W_ FI-?)E?LY2$K',J=G>LL$ 6)R(D%I2B1VU 4:DMEO+T#4=I&^/2
MW"K/<5EO2F/NP^?=/%:J:3 YB(Y'<%5X/CJVA>T$/0EC+I9R%.K%DQ](D
'$\FWRT"6TZ?2>5!S*Y[F77-->^
M(;Z]=&S/@X8)PO:$E G*:4/6K
#HLI;06*U<+8'%[R9%HR8:HQF
M<=*$G[(AQ[N2XVBUZ0J/SQT:@KL=?_TB)<:&S;3<(]8#(G\%<0'WUE#CX