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EX-31.2 - EXHIBIT 31.2 - Home Federal Bancorp, Inc. of Louisianaex312.htm
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EX-32.0 - EXHIBIT 32.0 - Home Federal Bancorp, Inc. of Louisianaex320.htm
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 
FORM 10-Q
(Mark One)
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the quarterly period ended:
December 31, 2015
or
 
[   ]
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the transition period from
 
to
 
 
Commission file number:
001-35019
 
HOME FEDERAL BANCORP, INC. OF LOUISIANA
(Exact name of registrant as specified in its charter)
 
Louisiana
 
02-0815311
(State or other jurisdiction of incorporation or organization)
 
(IRS Employer Identification No.)
 
624 Market Street, Shreveport, Louisiana
 
71101
(Address of principal executive offices)
 
(Zip Code)
 
(318) 222-1145
(Registrant's telephone number, including area code)
 
N/A
(Former name, former address and former fiscal year, if changed since last report)
 
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   [X] Yes    [  ]  No
 
Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted 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 and post such files).       [X] Yes   [  ] No
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company.  See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act. (Check One):
 
Large accelerated filer                               [   ]                                                        Accelerated filer                                      [   ]
Non-accelerated filer                                [   ]                                                        Smaller reporting company                     [X]
(Do not check if a smaller reporting company)
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).
[   ] Yes     [X] No
 
Shares of common stock, par value $.01 per share, outstanding as of February 10, 2016: The registrant had 2,003,751 shares of common stock outstanding.
 
 
 

INDEX
 
   
            Page
PART I
FINANCIAL INFORMATION
 
     
Item 1:
Financial Statements (Unaudited)
 
     
 
Consolidated Statements of Financial Condition
  1
     
 
Consolidated Statements of Income
  2
     
 
Consolidated Statements of Comprehensive Income
  3
     
 
Consolidated Statements of Changes in Stockholders' Equity
  4
     
 
Consolidated Statements of Cash Flows
  5
     
 
Notes to Consolidated Financial Statements
  7
     
Item 2:
Management's Discussion and Analysis of Financial Condition and  Results of Operations
27
     
Item 3:
Quantitative and Qualitative Disclosures About Market Risk
35
     
Item 4:
Controls and Procedures
35
     
PART II
OTHER INFORMATION
 
     
Item 1:
Legal Proceedings
35
     
Item 1A:
Risk Factors
35
     
Item 2:
Unregistered Sales of Equity Securities and Use of Proceeds
36
     
Item 3:
Defaults Upon Senior Securities
36
     
Item 4:
Mine Safety Disclosures
36
     
Item 5:
Other Information
36
     
Item 6:
Exhibits
36
     
     
SIGNATURES
   

 
 

HOME FEDERAL BANCORP, INC. OF LOUISIANA  
 
     
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
  
 
     
    
December 31, 2015
   
June 30, 2015
 
   
                   (Dollars In Thousands)
 
ASSETS
       
Cash and Cash Equivalents (Includes Interest-Bearing
Deposits with Other Banks of $22,276 and $16,105 for
December 31, 2015 and June 30, 2015, Respectively)
 
$
24,361
   
$
21,166
 
Securities Available-for-Sale
   
38,914
     
44,885
 
Securities Held-to-Maturity
   
1,504
     
2,010
 
Loans Held-for-Sale
   
6,873
     
14,203
 
Loans Receivable, Net of Allowance for Loan Losses
of $2,650 and $2,515, Respectively
   
268,415
     
268,427
 
Accrued Interest Receivable
   
960
     
927
 
Premises and Equipment, Net
   
11,863
     
10,188
 
Bank Owned Life Insurance
   
6,446
     
6,365
 
Deferred Tax Asset
   
1,015
     
824
 
Other Real Estate Owned
   
--
     
40
 
Other Assets
   
630
     
798
 
                 
Total Assets
 
$
360,981
   
$
369,833
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
         
                 
LIABILITIES
               
Deposits
 
$
288,900
   
$
286,238
 
Advances from Borrowers for Taxes and Insurance
   
300
     
578
 
Advances from Federal Home Loan Bank of Dallas
   
26,289
     
38,411
 
Other Borrowings
   
1,500
     
--
 
Other Accrued Expenses and Liabilities
   
1,163
     
1,220
 
 
Total Liabilities
   
318,152
     
326,447
 
                 
STOCKHOLDERS' EQUITY
               
Preferred Stock – 10,000,000 Shares of $.01 Par Value
   Authorized; None Issued and Outstanding
   
--
     
--
 
Common Stock – 40,000,000 Shares of $.01 Par Value
   Authorized; 2,037,861 and 2,109,606 shares Issued and
   Outstanding at December 31, 2015 and June 30, 2015,
   respectively
   
24
     
25
 
Additional Paid-in Capital
   
33,658
     
33,375
 
Unearned ESOP Stock
   
(1,388
)
   
(1,445
)
Unearned RRP Trust Stock
   
(460
)
   
(333
)
Retained Earnings
   
11,147
     
11,664
 
Accumulated Other Comprehensive Income
   
(152
)
   
100
 
                 
Total Stockholders' Equity
   
42,829
     
43,386
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
360,981
   
$
369,833
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
1

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)

   
For the Three Months Ended
December 31,
   
For the Six Months Ended
December 31
 
   
2015
   
2014
   
2015
   
2014
 
   
(In Thousands, Except per Share Data)    
 
INTEREST INCOME
               
Loans, Including Fees
 
$
3,541
   
$
3,436
   
$
7,177
   
$
6,744
 
Investment Securities
   
1
     
2
     
3
     
3
 
Mortgage-Backed Securities
   
189
     
283
     
384
     
527
 
Other Interest-Earning Assets
   
21
     
2
     
33
     
4
 
Total Interest Income
   
3,752
     
3,723
     
7,597
     
7,278
 
                                 
INTEREST EXPENSE
                               
Deposits
   
599
     
552
     
1,204
     
1,087
 
Federal Home Loan Bank Borrowings
   
63
     
66
     
125
     
111
 
Other Bank Borrowings
   
7
     
-
     
7
     
-
 
Total Interest Expense
   
669
     
618
     
1,336
     
1,198
 
Net Interest Income
   
3,083
     
3,105
     
6,261
     
6,080
 
                                 
PROVISION FOR LOAN LOSSES
   
26
     
80
     
91
     
120
 
Net Interest Income after
Provision for Loan Losses
   
3,057
     
3,025
     
6,170
     
5,960
 
                                 
NON-INTEREST INCOME
                               
Gain on Sale of Loans
   
428
     
415
     
1,154
     
887
 
     Gain on Sale of Securities
   
-
     
10
     
-
     
10
 
Income on Bank Owned Life Insurance
   
40
     
41
     
80
     
83
 
     Service Charges on deposit accounts
   
139
     
113
     
272
     
213
 
Other Income
   
13
     
15
     
26
     
31
 
Total Non-Interest Income
   
620
     
594
     
1,532
     
1,224
 
                                 
NON-INTEREST EXPENSE
                               
Compensation and Benefits
   
1,601
     
1,445
     
3,310
     
2,947
 
Occupancy and Equipment
   
276
     
269
     
514
     
498
 
Data Processing
   
147
     
124
     
277
     
243
 
Audit and Examination Fees
   
83
     
49
     
133
     
101
 
Franchise and Bank Shares Tax
   
91
     
47
     
181
     
122
 
Advertising
   
65
     
60
     
126
     
135
 
Legal Fees
   
151
     
134
     
218
     
203
 
Loan Collection
   
34
     
50
     
117
     
117
 
Deposit Insurance Premium
   
60
     
44
     
120
     
75
 
Other Expense
   
158
     
153
     
303
     
272
 
Total Non-Interest Expense
   
2,666
     
2,375
     
5,299
     
4,713
 
Income Before Income Taxes
   
1,011
     
1,244
     
2,403
     
2,471
 
                                 
PROVISION FOR INCOME TAX EXPENSE
   
330
     
409
     
781
     
813
 
Net Income
 
$
681
   
$
835
   
$
1,622
   
$
1,658
 
EARNINGS PER COMMON SHARE:
                               
Basic
 
$
0.36
   
$
0.42
   
$
0.85
   
$
0.83
 
Diluted
 
$
0.35
   
$
0.41
   
$
0.83
   
$
0.81
 
DIVIDENDS DECLARED
 
$
0.08
   
$
0.07
   
$
0.16
   
$
0.14
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
2

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)

   
For the Three Months Ended
December 31,
   
For the Six Months Ended
December 31,
 
   
2015
   
2014
   
2015
   
2014
 
   
(In Thousands)
   
(In Thousands)
 
                 
Net Income
 
$
681
   
$
835
   
$
1,622
   
$
1,658
 
                                 
Other Comprehensive Income (Loss), Net of Tax
                               
   Unrealized Holding Gain (Loss) on Securities Available-for-Sale,
     Net of Tax of $104 and $131 in 2015, respectively, and $68 and $12 in 2014, respectively
   
(202
)
   
132
     
(252
)
   
(24
)
 
   Reclassification Adjustment for Gain Included in Net Income,
   Net of Tax of $5 and $6 in 2014, respectively
   
-
     
(9
)
   
-
     
(11
)
 
        Net Other Comprehensive Income (Loss)
   
202
)
   
123
     
(252
)
   
(35
)
        Total Comprehensive Income
 
$
479
   
$
958
   
$
1,370
   
$
1,623
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
3

HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
SIX MONTHS ENDED DECEMBER 31, 2015 AND 2014
(Unaudited)

   
Common
Stock
   
Additional
Paid-in
Capital
   
Unearned
ESOP
Stock
   
Unearned RRP
Trust
Stock
   
Retained
Earnings
   
Treasury Stock
   
Accumulated
Other
Comprehensive
Income (Loss)
   
Total
Stockholders'
Equity
 
               
(In Thousands)
             
BALANCE – June 30, 2014
 
$
34
   
$
32,853
   
$
(1,561
)
 
$
(609
)
 
$
27,588
   
$
(15,698
)
 
$
172
   
$
42,779
 
                                                                 
Net Income
   
--
     
--
     
--
     
--
     
1,658
     
--
     
--
     
1,658
 
                                                                 
Changes in Unrealized Gain
    on Securities Available-for-
    Sale, Net of Tax Effects
   
--
     
--
     
--
     
--
     
--
     
--
     
(35
)
   
(35
)
                                                                 
RRP Shares Earned
   
--
     
--
     
--
     
10
     
--
     
--
     
--
     
10
 
                                                                 
Stock Options Vested
   
--
     
88
     
--
     
--
     
--
     
--
     
--
     
88
 
                                                                 
Common Stock Issuance for Stock
    Option Exercises
   
--
     
42
     
--
     
--
     
--
     
--
     
--
     
42
 
                                                                 
ESOP Compensation Earned
   
--
     
54
     
58
     
--
     
--
     
--
     
--
     
112
 
                                                                 
Company Stock Purchased
   
--
     
--
     
--
     
--
     
--
     
(1,052
)
   
--
     
(1,052
)
                                                                 
Dividends Declared
   
--
     
--
     
--
     
--
     
(310
)
   
--
     
---
     
(310
)
                                                                 
BALANCE – December  31, 2014
 
$
34
   
$
33,037
   
$
( 1,503
)
 
$
(599
)
 
$
28,936
   
$
(16,750
)
 
$
137
   
$
43,292
 
                                                                 
BALANCE – June 30, 2015
 
$
25
   
$
33,375
   
$
(1,445
)
 
$
(333
)
 
$
11,664
   
$
--
   
$
100
   
$
43,386
 
                                                                 
Net Income
   
--
     
--
     
--
     
--
     
1,622
     
--
     
--
     
1,622
 
                                                                 
Changes in Unrealized Gain
    on Securities Available-for-
    Sale, Net of Tax Effects
   
--
     
--
     
--
     
--
     
--
     
--
     
(252
)
   
(252
)
                                                                 
RRP Shares Earned
   
--
     
27
     
--
     
(127
)
   
--
     
--
     
--
     
(100
)
                                                                 
Stock Options Vested
   
--
     
97
     
--
     
--
     
--
     
--
     
--
     
97
 
                                                                 
Common Stock Issuance for Stock
    Option Exercises
   
--
     
88
     
--
     
--
     
--
     
--
     
--
     
88
 
                                                                 
ESOP Compensation Earned
   
--
     
71
     
57
     
--
     
--
     
--
     
--
     
128
 
                                                                 
Company Stock Purchased
   
(1
)
   
--
     
--
     
--
     
(1,802
)
   
--
     
--
     
(1,803
)
                                                                 
Dividends Declared
   
--
     
--
     
--
     
--
     
(337
)
   
--
     
--
     
(337
)
                                                                 
BALANCE – December 31, 2015
 
$
24
   
$
33,658
   
$
(1,388
)
 
$
(460
)
 
$
11,147
   
$
--
   
$
(152
)
 
$
42,829
 

 
 
 
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
4

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS
 
(Unaudited)
 
 
        
Six Months Ended
 
        
December 31,
 
   
2015
   
2014
 
        
(In Thousands)
 
CASH FLOWS FROM OPERATING ACTIVITIES
       
Net Income
 
$
1,622
   
$
1,658
 
Adjustments to Reconcile Net Income to Net
               
Cash Provided by Operating Activities
               
Net Amortization and Accretion on Securities
   
9
     
7
 
Gain on Sale of Securities
   
--
     
(10
)
Gain on Sale of Loans
   
(1,154
)
   
(887
)
Amortization of Deferred Loan Fees
   
(38
)
   
(101
)
Depreciation of Premises and Equipment
   
196
     
179
 
ESOP Expense
   
128
     
112
 
Stock Option Expense
   
97
     
88
 
RRP and Share Award Expense
   
140
     
117
 
Deferred Income Tax
   
(61
)
   
(6
)
Provision for Loan Losses
   
91
     
120
 
Increase in Cash Surrender Value on Bank Owned Life Insurance
   
(80
)
   
(83
)
Bad Debt Recovery
   
44
     
--
 
Changes in Assets and Liabilities:
               
Loans Held-for-Sale – Originations and Purchases
   
(46,759
)
   
(40,827
)
Loans Held-for-Sale – Sale and Principal Repayments
   
55,242
     
41,329
 
Accrued Interest Receivable
   
(33
)
   
23
 
Other Operating Assets
   
208
     
(138
)
Other Operating Liabilities
   
(324
)
   
(281
)
                 
Net Cash Provided by Operating Activities
   
9,328
     
1,300
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
Loan Originations and Purchases, Net of Principal Collections
   
(88
)
   
(20,611
)
Deferred Loan Fees Collected
   
3
     
7
 
Acquisition of Premises and Equipment
   
(1,871
)
   
(1,810
)
Activity in Available-for-Sale Securities:
               
Proceeds from Sale of Securities
   
--
     
1,964
 
Principal Payments on Mortgage-Backed Securities
   
5,578
     
5,464
 
Purchases of Securities
   
--
     
( 9,843
)
Activity in Held-to-Maturity Securities:
               
Redemption Proceeds
   
509
     
297
 
Purchases of Securities
   
(3
)
   
(908
)
                 
Net Cash Provided by (Used In) Investing Activities
   
4,128
     
(25,440
)
 
 
 
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
5

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
 
(Unaudited)
 
 
   
Six Months Ended
 
   
December 31,
 
   
2015
   
2014
 
   
(In Thousands)
 
CASH FLOWS FROM FINANCING ACTIVITIES
   
Net Increase (Decrease) in Deposits
 
$
2,662
   
$
( 19,531
)
Proceeds from Federal Home Loan Bank Advances
   
44,000
     
523,700
 
Repayments of Advances from Federal Home Loan Bank
   
(56,122
)
   
( 487,567
)
Net Increase in Advances from Borrowers for Taxes and Insurance
   
(278
)
   
(164
)
Dividends Paid
   
(337
)
   
(310
)
Company Stock Purchased
   
(1,796
)
   
(1,031
)
Proceeds from Stock Options Exercised
   
83
     
21
 
Proceeds from other Bank Borrowings
   
1,500
     
--
 
Recognition and Retention Plan Share Distributions
   
27
     
--
 
                 
Net Cash (Used in) Provided by Financing Activities
   
(10,261
)
   
15,118
 
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
3,195
     
( 9,022
)
                 
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
   
21,166
     
13,633
 
                 
CASH AND CASH EQUIVALENTS - END OF PERIOD
 
$
24,361
   
$
4,611
 
                 
SUPPLEMENTARY CASH FLOW INFORMATION
               
Interest Paid on Deposits and Borrowed Funds
 
$
1,343
   
$
1,153
 
Income Taxes Paid
   
865
     
785
 
Market Value Adjustment for Loss on Securities Available-for-Sale
   
(383
)
   
( 53
)
 
 
 
 
 
 
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
6

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
 
1.            Summary of Accounting Policies

Basis of Presentation

The consolidated financial statements include the accounts of Home Federal Bancorp, Inc. of Louisiana (the "Company") and its subsidiary, Home Federal Bank ("Home Federal Bank" or the "Bank").  These consolidated financial statements were prepared in accordance with instructions for Form 10-Q and Regulation S-X and do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with accounting principles generally accepted in the United States of America. However, in the opinion of management, all adjustments (consisting of normal recurring adjustments) necessary for a fair presentation of the financial statements have been included. The results of operations for the six month period ended December 31, 2015, is not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2016.

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, 2015.  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 five full service banking offices and home office, located in Caddo and Bossier Parishes, Louisiana.  Construction has begun on a new North Shreveport branch location expected to open in April 2016. 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, 2015, the Bank had one wholly-owned subsidiary, Metro Financial Services, Inc., which previously engaged in the sale of annuity contracts and does not currently engage in a meaningful amount of business.

Cash and Cash Equivalents

For purposes of the Consolidated Statements of Cash Flows, cash and cash equivalents include cash on hand, balances due from banks, and federal funds sold, all of which mature within ninety days.
 
 
 
 
 
7

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
1.            Summary of Accounting Policies (continued)

Securities

The Company classifies its debt and equity investment securities into one of three categories:  held-to-maturity, available-for-sale, or trading.  Investments in nonmarketable equity securities and debt securities, in which the Company has the positive intent and ability to hold to maturity, are classified as held-to-maturity and carried at amortized cost.  Investments in debt securities that are not classified as held-to-maturity and marketable equity securities that have readily determinable fair values are classified as either trading or available-for-sale securities.  Securities that are acquired and held principally for the purpose of selling in the near term are classified as trading securities.  Investments in securities not classified as trading or held-to-maturity are classified as available-for-sale.

Trading account and available-for-sale securities are carried at fair value.  Unrealized holding gains and losses on trading securities are included in earnings while net unrealized holding gains and losses on available-for-sale securities are excluded from earnings and reported in other comprehensive income.  Purchase premiums and discounts are recognized in interest income using the interest method over the term of the securities.  Declines in the fair value of held-to-maturity and available-for-sale securities below their cost that are deemed to be other than temporary are reflected in earnings as realized losses.  In estimating other-than-temporary impairment losses, management considers (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.  Gains and losses on the sale of securities are recorded on the trade date and are determined using the specific identification method.

Loans Held-for-Sale

Loans originated and intended for sale in the secondary market are carried at the lower of cost or estimated fair value in the aggregate.  Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Loans

Loans receivable are stated at 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.
 
 
 
 
 
 
8

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
1.            Summary of Accounting Policies (continued)

Allowance for Loan Losses (continued)

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of expected future cash flows or the fair value of the collateral of the loan.  If the present value of expected future cash flows or 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.

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 possible losses in the existing loan portfolio.

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.

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 bases 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.
 
 
 
 
 
 
9

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
1.            Summary of Accounting Policies (continued)

Income Taxes (continued)

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.

Comprehensive Income

Accounting principles generally accepted in the United States of America require that recognized revenue, expenses, gains and losses be included in net income.  Although certain changes in assets and liabilities, such as unrealized gains and losses on available-for-sale securities, are reported as a separate component of the equity section of the Consolidated Statements of Financial Condition, such items, along with net income, are components of comprehensive income.

Stockholders' Equity

On January 1, 2015, the Louisiana Business Corporation Act (the Act) became effective.  Under the provisions of the Act, there is no concept of "Treasury Shares".  Rather, shares purchased by the Company constitute authorized but unissued shares.  Under Accounting Standards Codification (ASC) 505-30, Treasury Stock, accounting for treasury stock shall conform to state law.  Accordingly, the Company's Consolidated Statements of Financial Condition as of June 30, 2015 and December 31, 2015 reflect this change.  The cost of shares purchased by the Company has been allocated to Common Stock and Retained Earnings balances.


Recent Accounting Pronouncements

In January 2014, the FASB issued ASU 2014-04, Reclassification of Residential Real Estate - Collateralized Consumer Mortgage Loans upon Foreclosure.  The guidance within ASU 2014-04 clarifies that an in-substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (a) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure, or (b) the borrower conveying all interest in the residential real estate property to the creditor to satisfy the loan through completion of a deed in lieu of foreclosure or through a similar legal agreement.  Additionally, the amendments require interim and annual disclosure of both (a) the amount of foreclosed residential real estate property held by the creditor and (b) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction.  ASU 2014-04 is effective for public business entities for annual periods beginning after December 15, 2014.  The adoption of this guidance did not have a material effect on the Company's consolidated financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606):  Revenue from Contracts with Customers.  The amendments in ASU 2014-09 supersede the revenue recognition requirements in Topic 605, Revenue Recognition, and most industry-specific guidance.  The general principle of ASU 2014-09 requires an entity to recognize revenue upon the transfer of promised goods or services to customers in an amount that reflects the consideration of which the entity expects to be entitled in exchange for those goods or services.  The guidance sets forth a five step approach to be utilized for revenue recognition.  The amendments are effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period.  Management is currently assessing the impact to the Company's consolidated financial statements.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860):  Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  The amendments in ASU 2014-11 require repurchase-to-maturity transactions to be recorded and accounted for as secured borrowings.  Amendments to Topic 860 also require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement, as well as additional disclosures.  The accounting amendments and disclosures are effective for interim and annual periods
 
 
 
10

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
1.
Summary of Accounting Policies (continued)

Recent Accounting Pronouncements (continued)

beginning after December 15, 2014.  The disclosures for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings are required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015.  The adoption of this guidance did not have a material effect on the Company's consolidated financial statements.

In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718):  Accounting for Share-Based Payments When the Terms of an Award Provide That a Performance Target Could Be Achieved after the Requisite Service Period.  This guidance requires that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition.  ASU 2014-12 is effective for annual and interim periods beginning after December, 15, 2015.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In August 2014, the FASB issued ASU 2014-13, Consolidation (Topic 810):  Measuring the Financial Assets and the Financial Liabilities of a Consolidated Collateralized Financing Entity.  The amendments of ASU 2014-13 allow for a reporting entity that consolidates a collateralized financing entity within the scope of the guidance to elect to measure the financial assets and the financial liabilities of that collateralized financing entity using the measurement alternative.  Under the measurement alternative, the reporting entity should measure both the financial assets and the financial liabilities of that collateralized financing entity in its consolidated financial statements using the more observable of the fair value of the financial assets and the fair value of the financial liabilities.  The amendments are effective for annual periods, and interim periods within those annual periods, beginning after December 15, 2015.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40).  The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is non-separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor, and make a claim on the guaranty, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed.  Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.  The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  This Update did not have a significant impact on the Company's consolidated financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement—Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items, which eliminates the concept of extraordinary item from U.S. GAAP and the need for entities to evaluate whether transactions or events are both unusual in nature and infrequently occurring. However, the ASU does not affect the reporting and disclosure requirements for an event or transaction that is unusual in nature or that occurs infrequently. The amendments in Update 2015-01 are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments. This ASU eliminates the requirement to retrospectively account for changes to provisional amounts initially recorded in a business combination.  ASU 2015-16 requires that an acquirer recognize adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustments are determined, including the effect of the change in provisional amount as if the accounting had been completed at the acquisition date.  The provisions of this ASU are effective for fiscal years beginning after December 15, 2015, and should be applied prospectively to adjustments to provisional amounts that occur after the effective date.  The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements.
 
 
 
11

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
1.            Summary of Accounting Policies (continued)

Recent Accounting Pronouncements (continued)

In January 2016, the FASB issued ASU 2016-01, Financial Instruments.  The amendments in this Update supersede the guidance to classify equity securities with readily determinable fair values into different categories and require equity securities to be measured at fair value with changes in the fair value recognized through net income.  The amendments allow equity investments that do not have readily determinable fair values to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment.  The amendments in this Update also simplify the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period.  In addition, the amendments supersede the requirement to disclose the methods and significant assumptions used in calculating the fair value of financial instruments required to be disclosed for financial instruments measured at amortized cost on the balance sheet.  The amendments in this Update require public business entities that are required to disclose fair value of financial instruments measured at amortized cost on the balance sheet to measure that fair value using the exit price notion consistent with Topic 820, Fair Value Measurement.

The provisions within this Update require an entity to present separately in other comprehensive income the portion of the total change in the fair value of a liability resulting from a change in the instrument-specific credit risk when the entity has elected to measure the liability at fair value in accordance with the fair value option.  This amendment excludes from net income gains or losses that the entity may not realize because those financial liabilities are not usually transferred or settled at their fair values before maturity.  The amendments in this Update require separate presentation of financial assets and financial liabilities by measurement category and form of financial asset (that is, securities or loans and receivables) on the balance sheet or in the accompanying notes to the financial statements.

The amendments in ASU 2016-01 are effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years.  The adoption of this guidance is not expected to have a material impact on the Company's consolidated financial statements.
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 

12

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
2.            Securities

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

   
December 31, 2015
 
       
Gross
   
Gross
     
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
Losses
   
Value
 
   
(In Thousands)
 
Securities Available-for-Sale
               
                 
Debt Securities
               
  FHLMC Mortgage-Backed Certificates
 
$
246
   
$
14
   
$
--
   
$
260
 
  FNMA Mortgage-Backed Certificates
   
24,242
     
483
     
324
     
24,401
 
  GNMA Mortgage-Backed Certificates
   
14,657
     
3
     
407
     
14,253
 
                                 
          Total Debt Securities
   
39,145
     
500
     
731
     
38,914
 
                                 
    Total Securities Available-for-Sale
 
$
39,145
   
$
500
   
$
731
   
$
38,914
 
                                 
Securities Held-to-Maturity
                               
                                 
Equity Securities (Non-Marketable)
                               
  12,535 Shares – Federal Home Loan Bank
 
$
1,254
   
$
--
   
$
--
   
$
1,254
 
  630 Shares – First National Bankers Bankshares, Inc.
   
250
     
--
     
--
     
250
 
                                 
          Total Equity Securities
   
1,504
     
--
     
--
     
1,504
 
                                 
    Total Securities Held-to-Maturity
 
$
1,504
   
$
--
   
$
--
   
$
1,504
 

   
June 30, 2015
 
       
Gross
   
Gross
     
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
Losses
   
Value
 
   
(In Thousands)
 
Securities Available-for-Sale
   
                 
Debt Securities
               
  FHLMC Mortgage-Backed Certificates
 
$
267
   
$
17
   
$
--
   
$
284
 
  FNMA Mortgage-Backed Certificates
   
27,263
     
605
     
61
     
27,807
 
  GNMA Mortgage-Backed Certificates
   
17,203
     
5
     
414
     
16,794
 
                                 
          Total Debt Securities
   
44,733
     
627
     
475
     
44,885
 
                                 
          Total Securities Available-for-Sale
 
$
44,733
   
$
627
   
$
475
   
$
44,885
 
                                 
Securities Held-to-Maturity
                               
                                 
Equity Securities (Non-Marketable)
                               
  17,600 Shares – Federal Home Loan Bank
 
$
1,760
   
$
--
   
$
--
   
$
1,760
 
  630 Shares – First National Bankers Bankshares, Inc.
   
250
     
--
     
--
     
250
 
                                 
          Total Equity Securities
   
2,010
     
--
     
--
     
2,010
 
                                 
          Total Securities Held-to-Maturity
 
$
2,010
   
$
--
   
$
--
   
$
2,010
 
 
 
 
 
13

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
 
2.            Securities (continued)

The amortized cost and fair value of securities by contractual maturity at December 31, 2015, follows:

   
Available-for-Sale
   
Held-to-Maturity
 
   
Amortized
   
Fair
   
Amortized
   
Fair
 
   
Cost
   
Value
   
Cost
   
Value
 
        (In Thousands)        
Debt Securities
               
    Within One Year or Less
 
$
--
   
$
--
   
$
--
   
$
--
 
    One through Five Years
   
148
     
152
     
--
     
--
 
    After Five through Ten Years
   
83
     
86
     
--
     
--
 
    Over Ten Years
   
38,914
     
38,676
     
--
     
--
 
     
39,145
     
38,914
     
--
     
--
 
                                 
Other Equity Securities
   
--
     
--
     
1,504
     
1,504
 
                                 
   Total
 
$
39,145
   
$
38,914
   
$
1,504
   
$
1,504
 
 
There were no sales of available-for-sale securities during the six months ended December 31, 2015.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale for the six months ended December 31, 2015 and at June 30, 2015 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

   
December 31, 2015
 
   
Less Than Twelve Months
   
Over Twelve Months
 
   
Gross
       
Gross
     
   
Unrealized
   
Fair
   
Unrealized
   
Fair
 
   
Losses
   
Value
   
Losses
   
Value
 
   
(In Thousands)
 
Securities Available-for-Sale
               
                 
Debt Securities
               
    Mortgage-Backed Securities
 
$
306
   
$
15,277
   
$
425
   
$
17,454
 
                                 
        Total Securities Available-for-Sale
 
$
306
   
$
15,277
   
$
425
   
$
17,454
 
                                 

   
June 30, 2015
 
   
Less Than Twelve Months
   
Over Twelve Months
 
   
Gross
       
Gross
     
   
Unrealized
   
Fair
   
Unrealized
   
Fair
 
   
Losses
   
Value
   
Losses
   
Value
 
   
(In Thousands)
 
Securities Available-for-Sale
               
                 
Debt Securities
               
    Mortgage-Backed Securities
 
$
61
   
$
10,345
   
$
414
   
$
16,683
 
                                 
        Total Securities Available-for-Sale
 
$
61
   
$
10,345
   
$
414
   
$
16,683
 

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.

 
14

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
2.            Securities (continued)

At December 31, 2015, securities with a carrying value of $ 1.5 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $ 164.1 million were pledged to secure FHLB advances.

3.            Loans Receivable

Loans receivable are summarized as follows:

   
 
December 31, 2015
   
June 30, 2015
 
     
(In Thousands)
 
Loans Secured by Mortgages on Real Estate
       
One- to Four-Family Residential
 
$
109,464
   
$
103,332
 
Commercial
   
60,184
     
62,080
 
Multi-Family Residential
   
15,022
     
15,246
 
 Land
   
21,350
     
19,866
 
Construction
   
17,418
     
17,620
 
Equity and Second Mortgage
   
1,777
     
2,460
 
Equity Lines of Credit
   
17,074
     
22,187
 
     
242,289
     
242,791
 
                 
Commercial Loans
   
28,528
     
28,019
 
Consumer Loans
               
Loans on Savings Accounts
   
305
     
209
 
Automobile and Other Consumer Loans
   
95
     
110
 
Total Consumer and Other Loans
   
400
     
319
 
Total Loans
   
271,217
     
271,129
 
                 
Less:   Allowance for Loan Losses
   
(2,650
)
   
(2,515
)
     Unamortized Loan Fees
   
(152
)
   
(187
)
Net Loans Receivable
 
$
268,415
   
$
268,427
 


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

   
Six Months Ended December 31,
 
 
 
2015
   
2014
 
   
(In Thousands)
 
         
Balance - Beginning of Period
 
$
2,515
   
$
2,396
 
Provision for Loan Losses
   
91
     
120
 
Loan Charge-Offs
   
--
     
(151
)
Recoveries
   
44
     
--
 
                 
Balance - End of Period
 
$
2,650
   
$
2,365
 

Credit Quality Indicators

The Company segregates loans into risk categories based on the pertinent information about the ability of borrowers to service their debt such as:  current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors.  The Company analyzes loans individually by classifying the loans according to credit risk.  Loans classified as substandard or identified as special mention are reviewed quarterly by management to evaluate the level of deterioration, improvement, and impairment, if any, as well as assign the appropriate risk category.
 
 
 
15

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
3.            Loans Receivable (continued)

Credit Quality Indicators (continued)

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

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, 2015 and June 30, 2015:

December 31, 2015
 
Pass
   
Special
Mention
    Substandard     Doubtful     Total  
   
(In Thousands)
 
Real Estate Loans:
                   
  One- to Four-Family Residential
 
$
109,174
   
$
175
   
$
115
   
$
--
   
$
109,464
 
  Commercial
   
59,572
     
343
     
269
     
--
     
60,184
 
  Multi-Family Residential
   
15,022
     
--
     
--
     
--
     
15,022
 
  Land
   
21,350
     
--
     
--
     
--
     
21,350
 
  Construction
   
17,418
     
--
     
--
     
--
     
17,418
 
  Equity and Second Mortgage
   
1,777
     
--
     
--
     
--
     
1,777
 
  Equity Lines of Credit
   
17,074
     
--
     
--
     
--
     
17,074
 
Commercial Loans
   
28,528
     
--
     
--
     
--
     
28,528
 
Consumer Loans
   
400
     
--
     
--
     
--
     
400
 
     Total
 
$
270,315
   
$
518
   
$
384
   
$
--
   
$
271,217
 
                                         
 
 
 
 
 
 
 
 
 
 
 
 
16

 
HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
3. Loans Receivable (continued)
 
Credit Quality Indicators (continued)
             
June 30, 2015
 
Pass
   
Special
Mention
   
Substandard
   
Doubtful
   
Total
 
   
(In Thousands)
 
Real Estate Loans:
                   
  One- to Four-Family Residential
 
$
103,207
   
$
112
   
$
13
   
$
--
   
$
103,332
 
  Commercial
   
61,542
     
538
     
--
     
--
     
62,080
 
  Multi-Family Residential
   
15,246
     
--
     
--
     
--
     
15,246
 
  Land
   
19,866
     
--
     
--
     
--
     
19,866
 
  Construction
   
17,620
     
--
     
--
     
--
     
17,620
 
  Equity and Second Mortgage
   
2,460
     
--
     
--
     
--
     
2,460
 
  Equity Lines of Credit
   
22,163
     
--
     
24
     
--
     
22,187
 
Commercial Loans
   
28,019
     
--
     
--
     
--
     
28,019
 
Consumer Loans
   
319
     
--
     
--
     
--
     
319
 
                                         
     Total
 
$
270,442
   
$
650
   
$
37
   
$
--
   
$
271,129
 

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, 2015 and June 30, 2015:

 December 31, 2015
 
30-59 Days
Past Due
   
60-89
Days Past Due
   
Greater
Than 90 Days
   
Total
Past Due
   
Current
   
Total
Loans
Receivable
   
Recorded
Investment
> 90 Days
and
Accruing
 
   
(In Thousands)
 
Real Estate Loans:
                           
One- to Four-Family
    Residential
 
$
2,734
   
$
1,164
   
$
248
   
$
4,146
   
$
105,318
   
$
109,464
   
$
235
 
  Commercial
   
--
     
--
     
--
     
--
     
60,184
     
60,184
     
--
 
  Multi-Family Residential
   
--
     
--
     
--
     
--
     
15,022
     
15,022
     
--
 
  Land
   
563
     
--
     
--
     
563
     
20,787
     
21,350
     
--
 
  Construction
   
--
     
--
     
--
     
--
     
17,418
     
17,418
     
--
 
  Equity and Second Mortgage
   
--
     
--
     
--
     
--
     
1,777
     
1,777
     
--
 
  Equity Lines of Credit
   
--
     
--
     
--
     
--
     
17,074
     
17,074
     
--
 
Commercial Loans
   
--
     
--
     
--
     
--
     
28,528
     
28,528
     
--
 
Consumer Loans
   
--
     
--
     
--
     
--
     
400
     
400
     
--
 
   
$
3,297
   
$
1,164
   
$
248
   
$
4,709
   
$
266,508
   
$
271,217
   
$
235
 

 
 
 
 
 
 
 
 
 
 
17

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
3.            Loans Receivable (continued)

Credit Quality Indicators (continued)

 June 30, 2015
 
30-59 Days
Past Due
   
60-89
Days Past Due
   
Greater
Than 90 Days
   
Total
Past Due
   
Current
   
Total Loans
Receivable
   
Recorded
Investment
> 90 Days
and
Accruing
 
   
(In Thousands)
 
Real Estate Loans:
                           
One- to Four-Family
    Residential
 
$
2,137
   
$
1,100
   
$
80
   
$
3,317
   
$
100,015
   
$
103,332
   
$
67
 
  Commercial
   
--
     
--
     
--
     
--
     
62,080
     
62,080
     
--
 
  Multi-Family Residential
   
--
     
--
     
--
     
--
     
15,246
     
15,246
     
--
 
  Land
   
--
     
--
     
--
     
--
     
19,866
     
19,866
     
--
 
  Construction
   
--
     
--
     
--
     
--
     
17,620
     
17,620
     
--
 
  Equity and Second Mortgage
   
--
     
--
     
--
     
--
     
2,460
     
2,460
     
--
 
  Equity Lines of Credit
   
--
     
--
     
--
     
--
     
22,187
     
22,187
     
--
 
Commercial Loans
   
--
     
--
     
--
     
--
     
28,019
     
28,019
     
--
 
Consumer Loans
   
3
     
--
     
--
     
3
     
316
     
319
     
--
 
                                                         
     Total
 
$
2,140
   
$
1,100