Home Federal Bancorp, Inc. of Louisiana - FORM 10-Q - May 12, 2016

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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 
FORM 10-Q
(Mark One)
[X]
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
 
For the quarterly period ended:
March 31, 2016
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 May 11, 2016: The registrant had 1,988,580 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)   
  
         
    
March 31, 2016
    
June 30, 2015
  
   
(Dollars In Thousands)   
  
ASSETS
            
Cash and Cash Equivalents (Includes Interest-Bearing
Deposits with Other Banks of $5,044 and $16,105 for
March 31, 2016 and June 30, 2015, Respectively)
  
$
7,547
    
$
21,166
  
Securities Available-for-Sale
    
42,486
      
44,885
  
Securities Held-to-Maturity
    
1,509
      
2,010
  
Loans Held-for-Sale
    
7,284
      
14,203
  
Loans Receivable, Net of Allowance for Loan Losses
of $2,749 and $2,515, Respectively
    
282,365
      
268,427
  
Accrued Interest Receivable
    
976
      
927
  
Premises and Equipment, Net
    
12,221
      
10,188
  
Bank Owned Life Insurance
    
6,485
      
6,365
  
Deferred Tax Asset
    
1,047
      
824
  
Other Real Estate Owned
    
--
      
40
  
Other Assets
    
679
      
798
  
                 
Total Assets
  
$
362,599
    
$
369,833
  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
          
                 
LIABILITIES
                
Deposits
  
$
290,653
    
$
286,238
  
Advances from Borrowers for Taxes and Insurance
    
478
      
578
  
Advances from Federal Home Loan Bank of Dallas
    
27,227
      
38,411
  
Other Accrued Expenses and Liabilities
    
1,363
      
1,220
  
 
Total Liabilities
    
319,721
      
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; 1,996,880 and 2,109,606 shares Issued and
   Outstanding at March 31, 2016 and June 30, 2015,
   respectively
    
24
      
25
  
Additional Paid-in Capital
    
33,765
      
33,375
  
Unearned ESOP Stock
    
(1,359
)
    
(1,445
)
Unearned RRP Trust Stock
    
(266
)
    
(333
)
Retained Earnings
    
10,838
      
11,664
  
Accumulated Other Comprehensive Income
    
(124
)
    
100
  
                 
Total Stockholders' Equity
    
42,878
      
43,386
  
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
  
$
362,599
    
$
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
March 31,
    
For the Nine Months Ended
March 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(In Thousands, Except per Share Data)
  
INTEREST INCOME
                        
Loans, Including Fees
  
$
3,644
    
$
3,457
    
$
10,821
    
$
10,201
  
Investment Securities
    
4
      
2
      
7
      
5
  
Mortgage-Backed Securities
    
195
      
246
      
579
      
773
  
Other Interest-Earning Assets
    
19
      
1
      
52
      
6
  
Total Interest Income
    
3,862
      
3,706
      
11,459
      
10,985
  
                                 
INTEREST EXPENSE
                                
Deposits
    
573
      
560
      
1,777
      
1,647
  
Federal Home Loan Bank Borrowings
    
61
      
66
      
186
      
178
  
Other Bank Borrowings
    
11
      
3
      
18
      
3
  
Total Interest Expense
    
645
      
629
      
1,981
      
1,828
  
Net Interest Income
    
3,217
      
3,077
      
9,478
      
9,157
  
                                 
PROVISION FOR LOAN LOSSES
    
90
      
90
      
181
      
210
  
Net Interest Income after
Provision for Loan Losses
    
3,127
      
2,987
      
9,297
      
8,947
  
                                 
NON-INTEREST INCOME
                                
Gain on Sale of Loans
    
590
      
781
      
1,744
      
1,668
  
     Gain on Sale of Securities
    
--
      
--
      
--
      
10
  
Income on Bank Owned Life Insurance
    
39
      
40
      
120
      
123
  
     Service Charges on deposit accounts
    
138
      
116
      
410
      
329
  
Other Income
    
8
      
9
      
34
      
40
  
                 Total Non-Interest Income    
775
      
946
      
2,308
      
2,170
  
                                 
NON-INTEREST EXPENSE
                                
Compensation and Benefits
    
1,749
      
1,669
      
5,059
      
4,616
  
Occupancy and Equipment
    
275
      
280
      
789
      
778
  
Data Processing
    
140
      
133
      
417
      
377
  
Audit and Examination Fees
    
56
      
66
      
189
      
167
  
Franchise and Bank Shares Tax
    
83
      
72
      
266
      
193
  
Advertising
    
55
      
48
      
181
      
183
  
Legal Fees
    
133
      
81
      
351
      
284
  
Loan Collection
    
74
      
144
      
191
      
261
  
Deposit Insurance Premium
    
45
      
45
      
165
      
119
  
Other Expense
    
140
      
139
      
443
      
412
  
Total Non-Interest Expense
    
2,750
      
2,677
      
8,051
      
7,390
  
Income Before Income Taxes
    
1,152
      
1,256
      
3,554
      
3,727
  
                                 
PROVISION FOR INCOME TAX EXPENSE
  
$
378
    
$
413
    
$
1,158
    
$
1,226
  
Net Income
  
$
774
    
$
843
    
$
2,396
    
$
2,501
  
EARNINGS PER COMMON SHARE:
                                
Basic
  
$
0.42
    
$
0.43
    
$
1.27
    
$
1.26
  
Diluted
  
$
0.40
    
$
0.42
    
$
1.22
    
$
1.22
  
DIVIDENDS DECLARED
  
$
0.08
    
$
0.07
    
$
0.24
    
$
0.21
  
 
 
See accompanying notes to unaudited consolidated financial statements.
 
2
HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)
 
 
   
For the Three Months Ended
March 31,
    
For the Nine Months Ended
March 31,
  
   
2016
    
2015
    
2016
    
2015
  
   
(In Thousands)
    
(In Thousands)
  
                         
Net Income
  
$
774
    
$
843
    
$
2,396
    
$
2,501
  
                                 
Other Comprehensive Income (Loss), Net of Tax
                                
   Unrealized Holding Gain (Loss) on Securities Available-for-Sale,
     Net of Tax of $14 and $116 in 2016, respectively, and $104 and $131 in 2015, respectively
    
27
      
(1
)
    
(224
)
    
(29
)
                                 
   Reclassification Adjustment for Gain Included in Net Income,
   Net of Tax of $0 and $0 in 2016 and $0 and $3 in 2015,
   respectively
    
--
      
--
      
--
      
(7
)
                                 
        Net Other Comprehensive Income (Loss)
    
27
      
(1
)
    
(224
)
    
(36
)
        Total Comprehensive Income
  
$
801
    
$
842
    
$
2,172
    
$
2,465
  
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
3
HOME FEDERAL BANCORP, INC. OF LOUISIANA

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
NINE MONTHS ENDED MARCH 31, 2016 AND 2015
(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
    
--
      
--
      
--
      
--
      
2,501
      
--
      
--
      
2,501
  
                                                                 
Changes in Unrealized Gain
    on Securities Available-for-
    Sale, Net of Tax Effects
    
--
      
--
      
--
      
--
      
--
      
--
      
(36
)
    
(36
)
                                                                 
RRP Shares Earned
    
--
      
--
      
--
      
276
      
--
      
--
      
--
      
276
  
                                                                 
Stock Options Vested
    
--
      
134
      
--
      
--
      
--
      
--
      
--
      
134
  
                                                                 
Common Stock Issuance for Stock
    Option Exercises
    
--
      
96
      
--
      
--
      
--
      
--
      
--
      
96
  
                                                                 
ESOP Compensation Earned
    
--
      
81
      
86
      
--
      
--
      
--
      
--
      
167
  
                                                                 
Company Stock Purchased
    
--
      
--
      
--
      
--
      
--
      
(2,305
)
    
--
      
(2,305
)
                                                                 
Reclassification of Treasury Stock
     per Louisiana Law
    
(9
)
    
--
      
--
      
--
      
(17,994
)
    
18,003
      
--
      
--
  
                                                                 
Dividends Declared
    
--
      
--
      
--
      
--
      
(463
)
    
--
      
---
      
(463
)
                                                                 
BALANCE – March  31, 2015
  
$
25
    
$
33,164
    
$
( 1,475
)
  
$
(333
)
  
$
11,632
    
$
--
    
$
136
    
$
43,149
  
                                                                 
BALANCE – June 30, 2015
  
$
25
    
$
33,375
    
$
(1,445
)
  
$
(333
)
  
$
11,664
    
$
--
    
$
100
    
$
43,386
  
                                                                 
Net Income
    
--
      
--
      
--
      
--
      
2,396
      
--
      
--
      
2,396
  
                                                                 
Changes in Unrealized Gain
    on Securities Available-for-
    Sale, Net of Tax Effects
    
--
      
--
      
--
      
--
      
--
      
--
      
(224
)
    
(224
)
                                                                 
RRP Shares Earned
    
--
      
36
      
--
      
67
      
--
      
--
      
--
      
103
  
                                                                 
Stock Options Vested
    
--
      
155
      
--
      
--
      
--
      
--
      
--
      
155
  
                                                                 
Common Stock Issuance for Stock
    Option Exercises
    
--
      
91
      
--
      
--
      
--
      
--
      
--
      
91
  
                                                                 
ESOP Compensation Earned
    
--
      
108
      
86
      
--
      
--
      
--
      
--
      
194
  
                                                                 
Company Stock Purchased
    
(1
 )    
--
      
--
      
--
      
(2,722
 )    
 
 
    
--
      
(2,723
)
                                                                 
Dividends Declared
    
--
      
--
      
--
      
--
      
(500
)
    
--
      
--
      
(500
)
                                                                 
BALANCE – March 31, 2016
  
$
24
    
$
33,765
    
$
(1,359
)
  
$
(266
)
  
$
10,838
    
$
--
    
$
(124
)
  
$
42,878
  

 
 
 
See accompanying notes to unaudited consolidated financial statements.
4
HOME FEDERAL BANCORP, INC. OF LOUISIANA
  
   
CONSOLIDATED STATEMENTS OF CASH FLOWS
  
(Unaudited)
  
   
        
Nine Months Ended
  
        
March 31,
  
   
2016
    
2015
  
        
(In Thousands)
  
CASH FLOWS FROM OPERATING ACTIVITIES
            
Net Income
  
$
2,396
    
$
2,501
  
Adjustments to Reconcile Net Income to Net
                
Cash Provided by Operating Activities
                
Net Amortization and Accretion on Securities
    
12
      
33
  
Gain on Sale of Securities
    
--
      
(10
)
Gain on Sale of Loans
    
(1,744
)
    
(1,668
)
Amortization of Deferred Loan Fees
    
(53
)
    
(120
)
Depreciation of Premises and Equipment
    
313
      
278
  
ESOP Expense
    
194
      
167
  
Stock Option Expense
    
155
      
134
  
RRP and Share Award Expense
    
232
      
176
  
Deferred Income Tax
    
(107
)
    
(43
)
Provision for Loan Losses
    
181
      
210
  
Increase in Cash Surrender Value on Bank Owned Life Insurance
    
(120
)
    
(123
)
Bad Debt Recovery
    
53
      
--
  
Changes in Assets and Liabilities:
                
Loans Held-for-Sale – Originations and Purchases
    
(69,078
)
    
(64,344
)
Loans Held-for-Sale – Sale and Principal Repayments
    
77,741
      
65,093
  
Accrued Interest Receivable
    
(49
)
    
15
  
Other Operating Assets
    
159
      
(339
)
Other Operating Liabilities
    
(21
)
    
(125
)
                 
Net Cash Provided by Operating Activities
    
10,264
      
1,835
  
                 
CASH FLOWS FROM INVESTING ACTIVITIES
                
Loan Originations and Purchases, Net of Principal Collections
    
(14,141
)
    
(26,041
)
Deferred Loan Fees Collected
    
22
      
14
  
Acquisition of Premises and Equipment
    
(2,346
)
    
(1,994
)
Activity in Available-for-Sale Securities:
                
Proceeds from Sale of Securities
    
--
      
1,963
  
Principal Payments on Mortgage-Backed Securities
    
8,038
      
7,895
  
Purchases of Securities
    
(5,992
)
    
( 9,843
)
Activity in Held-to-Maturity Securities:
                
Redemption Proceeds
    
509
      
462
  
Purchases of Securities
    
(8
)
    
(941
)
                 
Net Cash Used in Investing Activities
    
(13,918
)
    
(28,485
)
 
 
 
 
 
See accompanying notes to unaudited consolidated financial statements.
 
5
HOME FEDERAL BANCORP, INC. OF LOUISIANA
  
   
CONSOLIDATED STATEMENTS OF CASH FLOWS (Continued)
  
(Unaudited)
  
   
   
Nine Months Ended
  
   
March 31,
  
   
2016
    
2015
  
   
(In Thousands)
  
CASH FLOWS FROM FINANCING ACTIVITIES
      
Net Increase in Deposits
  
$
4,415
    
$
2,511
  
Proceeds from Federal Home Loan Bank Advances
    
70,500
      
809,800
  
Repayments of Advances from Federal Home Loan Bank
    
(81,684
)
    
(784,226
)
Net Increase in Advances from Borrowers for Taxes and Insurance
    
(100
)
    
(26
)
Dividends Paid
    
(500
)
    
(463
)
Company Stock Purchased
    
(2,717
)
    
(2,284
)
Proceeds from Stock Options Exercised
    
85
      
76
  
Proceeds from other Bank Borrowings
    
1,800
      
550
  
Repayment of other Bank Borrowings
    
(1,800
)
    
(550
)
Recognition and Retention Plan Share Distributions
    
36
      
--
  
                 
Net Cash (Used In) Provided by Financing Activities
    
(9,965
)
    
25,388
  
                 
NET DECREASE IN CASH AND CASH EQUIVALENTS
    
(13,619
)
    
( 1,262
)
                 
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
  
 
21,166
      
13,633
  
                 
CASH AND CASH EQUIVALENTS - END OF PERIOD
  
$
7,547
    
$
12,371
  
                 
SUPPLEMENTARY CASH FLOW INFORMATION
                
Interest Paid on Deposits and Borrowed Funds
  
$
1,987
    
$
1,804
  
Income Taxes Paid
    
1,223
      
1,089
  
Market Value Adjustment for Loss on Securities Available-for-Sale
    
(341
)
    
(55
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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 nine month period ended March 31, 2016, 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 March 31, 2016.  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 "OCC").  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.  A new North Shreveport branch location is expected to open in May 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 March 31, 2016, 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 March 31, 2016 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:

   
March 31, 2016
  
         
Gross
    
Gross
        
   
Amortized
    
Unrealized
    
Unrealized
    
Fair
  
   
Cost
    
Gains
    
Losses
    
Value
  
   
(In Thousands)
  
Securities Available-for-Sale
                        
                         
Debt Securities
                        
  FHLMC Mortgage-Backed Certificates
  
$
234
    
$
11
    
$
--
    
$
245
  
  FNMA Mortgage-Backed Certificates
    
28,846
      
488
      
307
      
29,027
  
  GNMA Mortgage-Backed Certificates
    
13,595
      
4
      
385
      
13,214
  
                                 
          Total Debt Securities
    
42,675
      
503
      
692
      
42,486
  
                                 
    Total Securities Available-for-Sale
  
$
42,675
    
$
503
    
$
692
    
$
42,486
  
                                 
Securities Held-to-Maturity
                                
                                 
Equity Securities (Non-Marketable)
                                
  12,586 Shares – Federal Home Loan Bank
  
$
1,259
    
$
--
    
$
--
    
$
1,259
  
  630 Shares – First National Bankers Bankshares, Inc.
    
250
      
--
      
--
      
250
  
                                 
          Total Equity Securities
    
1,509
      
--
      
--
      
1,509
  
                                 
    Total Securities Held-to-Maturity
  
$
1,509
    
$
--
    
$
--
    
$
1,509
  
 
 
   
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 March 31, 2016, follows:

   
Available-for-Sale
    
Held-to-Maturity
  
   
Amortized
    
Fair
    
Amortized
    
Fair
  
   
Cost
    
Value
    
Cost
    
Value
  
   
(In Thousands)
  
                         
Debt Securities
                        
    Within One Year or Less
  
$
1
    
$
1
    
$
--
    
$
--
  
    One through Five Years
    
131
      
132
      
--
      
--
  
    After Five through Ten Years
    
71
      
73
      
--
      
--
  
    Over Ten Years
    
42,472
      
42,280
      
--
      
--
  
     
42,675
      
42,486
      
--
      
--
  
                                 
Other Equity Securities
    
--
      
--
      
1,509
      
1,509
  
                                 
   Total
  
$
42,675
    
$
42,486
    
$
1,509
    
$
1,509
  


There were no sales of available-for-sale securities during the nine months ended March 31, 2016.
 
The following tables show information pertaining to gross unrealized losses on securities available-for-sale for at March 31, 2016 and at June 30, 2015 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

   
March 31, 2016
  
   
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
  
$
65
    
$
5,872
    
$
627
    
$
25,098
  
                                 
        Total Securities Available-for-Sale
  
$
65
    
$
5,872
    
$
627
    
$
25,098
  
                                 

   
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 that have unrealized losses should be considered other than temporarily impaired.


14
HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
 
2. Securities (continued)

At March 31, 2016, securities with a carrying value of $1.4 million were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $166.3 million were pledged to secure FHLB advances.

3. Loans Receivable

Loans receivable are summarized as follows:

   
  
March 31, 2016
    
June 30, 2015
  
     
(In Thousands)
  
Loans Secured by Mortgages on Real Estate
            
One- to Four-Family Residential
  
$
112,304
    
$
103,332
  
Commercial
    
69,316
      
62,080
  
Multi-Family Residential
    
15,451
      
15,246
  
 Land
    
24,317
      
19,866
  
Construction
    
15,589
      
17,620
  
Equity and Second Mortgage
    
1,528
      
2,460
  
Equity Lines of Credit
    
17,097
      
22,187
  
     
255,602
      
242,791
  
                 
Commercial Loans
    
29,028
      
28,019
  
Consumer Loans
                
Loans on Savings Accounts
    
549
      
209
  
Automobile and Other Consumer Loans
    
91
      
110
  
Total Consumer and Other Loans
    
640
      
319
  
Total Loans
    
285,270
      
271,129
  
                 
Less:   Allowance for Loan Losses
    
(2,749
)
    
(2,515
)
     Unamortized Loan Fees
    
(156
)
    
(187
)
Net Loans Receivable
  
$
282,365
    
$
268,427
  


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

   
Nine Months Ended March 31,
  
 
  
2016
    
2015
  
   
(In Thousands)
  
             
Balance - Beginning of Period
  
$
2,515
    
$
2,396
  
Provision for Loan Losses
    
181
      
210
  
Loan Charge-Offs
    
--
      
(151
)
Recoveries
    
53
      
--
  
                 
Balance - End of Period
  
$
2,749
    
$
2,455
  

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

The following tables present the grading of loans, segregated by class of loans, as of March 31, 2016 and June 30, 2015:

 
March 31, 2016
    Pass    
 Special
Mention
      Substandard      Doubtful      Total  
                 (In Thousands)              
Real Estate Loans:
                              
  One- to Four-Family Residential
  
$
112,044
    
$
145
    
$
115
    
$
--
    
$
112,304
  
  Commercial
    
68,712
      
339
      
265
      
--
      
69,316
  
  Multi-Family Residential
    
15,451
      
--
      
--
      
--
      
15,451
  
  Land
    
24,317
      
--
      
--
      
--
      
24,317
  
  Construction
    
15,589
      
--
      
--
      
--
      
15,589
  
  Equity and Second Mortgage
    
1,528
      
--
      
--
      
--
      
1,528
  
  Equity Lines of Credit
    
17,097
      
--
      
--
      
--
      
17,097
  
Commercial Loans
    
26,243
      
2,785
      
--
      
--
      
29,028
  
Consumer Loans
    
640
      
--
      
--
      
--
      
640
  
     Total
  
$
281,621
    
$
3,269
    
$
380
    
$
--
    
$
285,270
  
                                         
 
 
 
 
 
 
 
 
 
 
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 March 31, 2016 and June 30, 2015:

March 31, 2016
  
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
  
$
1,543
    
$
1,165
    
$
218
    
$
2,926
    
$
109,378
    
$
112,304
    
$
206
  
  Commercial
    
--
      
--
      
--
      
--
      
69,316
      
69,316
      
--
  
  Multi-Family Residential
    
--
      
--
      
--
      
--
      
15,451
      
15,451
      
--
  
  Land
    
--
      
--
      
--
      
--
      
24,317
      
24,317
      
--
  
  Construction
    
--
      
--
      
--
      
--
      
15,589
      
15,589
      
--
  
  Equity and Second Mortgage
    
--
      
--
      
--
      
--
      
1,528
      
1,528
      
--
  
  Equity Lines of Credit
    
4
      
--
      
--
      
4
      
17,093
      
17,097
      
--
  
Commercial Loans
    
--
      
--
      
--
      
--
      
29,028
      
29,028
      
--
  
Consumer Loans
    
--
      
--
      
--
      
--
      
640
      
640
      
--
  
   
$
1,547
    
$
1,165
    
$
218
    
$
2,930
    
$
282,340
    
$
285,270
    
$
206
  

 
 
 
 
 
 
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