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EX-32.0 - EXHIBIT 32.0 - Home Federal Bancorp, Inc. of Louisianaexh320.htm
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EX-31.1 - EXHIBIT 31.1 - Home Federal Bancorp, Inc. of Louisianaexh311.htm

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, DC  20549
 
FORM 10-Q
(Mark One)
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
 
For the quarterly period ended:
March 31, 2017
 
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.   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).  Yes ☒   No ☐
 
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non- accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.
 
Large accelerated filer
 ☐
Accelerated filer
 ☐
Non-accelerated filer
 ☐
(Do not check if a smaller reporting company)
 
Smaller reporting company
 ☒
Emerging growth company
 ☐
 
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
 
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).  Yes ☐  No ☒
 
Shares of common stock, par value $.01 per share, outstanding as of May 11, 2017.  The registrant had 1,952,266 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
29
     
Item 3:
Quantitative and Qualitative Disclosures About Market Risk
38
     
Item 4:
Controls and Procedures
38
     
PART II
OTHER INFORMATION
 
     
Item 1:
Legal Proceedings
38
     
Item 1A:
Risk Factors
38
     
Item 2:
Unregistered Sales of Equity Securities and Use of Proceeds
39
     
Item 3:
Defaults Upon Senior Securities
39
     
Item 4:
Mine Safety Disclosures
39
     
Item 5:
Other Information
39
     
Item 6:
Exhibits
39
     
     
SIGNATURES
   

HOME FEDERAL BANCORP, INC. OF LOUISIANA
 
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(Unaudited)
 
   
March 31, 2017
   
June 30, 2016
 
             
ASSETS
           
Cash and Cash Equivalents (Includes Interest-Bearing Deposits with Other Banks of $2,543 and $2,529 for March 31, 2017 and June 30, 2016,
   Respectively)
 
$
10,960
   
$
4,756
 
Securities Available-for-Sale
   
38,998
     
50,173
 
Securities Held-to-Maturity (Fair Value of $28,311 and $2,349, Respectively
   
28,897
     
2,349
 
Loans Held-for-Sale
   
5,877
     
11,919
 
Loans Receivable, Net of Allowance for Loan Losses of $3,582 and $2,845, Respectively
   
305,484
     
290,827
 
Accrued Interest Receivable
   
1,112
     
1,024
 
Premises and Equipment, Net
   
12,054
     
12,366
 
Bank Owned Life Insurance
   
6,633
     
6,523
 
Deferred Tax Asset
   
1,587
     
984
 
Other Real Estate Owned
   
3,696
     
--
 
Other Assets
   
743
     
780
 
                 
Total Assets
 
$
416,041
   
$
381,701
 
                 
LIABILITIES AND STOCKHOLDERS' EQUITY
               
                 
LIABILITIES
               
Deposits
 
$
326,444
   
$
287,822
 
Advances from Borrowers for Taxes and Insurance
   
437
     
716
 
Advances from Federal Home Loan Bank of Dallas
   
42,672
     
47,665
 
Other Bank Borrowings
   
--
     
400
 
Other Accrued Expenses and Liabilities
   
1,308
     
1,706
 
 
Total Liabilities
   
370,861
     
338,309
 
                 
STOCKHOLDERS' EQUITY
               
Preferred Stock – $.01 Par Value; 10,000,000 Shares Authorized; None Issued and Outstanding
   
--
     
--
 
Common Stock – $.01 Par Value; 40,000,000 Shares Authorized; 1,954,158 and 1,967,955 Shares Issued and Outstanding at
      March 31, 2017 and June 30, 2016, Respectively
   
23
     
23
 
Additional Paid-in Capital
   
34,396
     
33,863
 
Unearned ESOP Stock
   
(1,244
)
   
(1,331
)
Unearned RRP Trust Stock
   
(46
)
   
(265
)
Retained Earnings
   
12,514
     
11,018
 
Accumulated Other Comprehensive (Loss) Income
   
(463
)
   
84
 
                 
Total Stockholders' Equity
   
45,180
     
43,392
 
                 
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY
 
$
416,041
   
$
381,701
 
                 
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,
 
   
2017
   
2016
   
2017
   
2016
 
   
(In Thousands, Except per Share Data)
 
INTEREST INCOME
                       
Loans, Including Fees
 
$
3,912
   
$
3,644
   
$
11,600
   
$
10,821
 
Investment Securities
   
7
     
4
     
20
     
7
 
Mortgage-Backed Securities
   
302
     
195
     
746
     
579
 
Other Interest-Earning Assets
   
11
     
19
     
23
     
52
 
Total Interest Income
   
4,232
     
3,862
     
12,389
     
11,459
 
                                 
INTEREST EXPENSE
                               
Deposits
   
591
     
573
     
1,694
     
1,777
 
Federal Home Loan Bank Borrowings
   
116
     
61
     
300
     
186
 
Other Bank Borrowings
   
6
     
11
     
14
     
18
 
Total Interest Expense
   
713
     
645
     
2,008
     
1,981
 
Net Interest Income
   
3,519
     
3,217
     
10,381
     
9,478
 
                                 
PROVISION FOR LOAN LOSSES
   
155
     
90
     
755
     
181
 
Net Interest Income after Provision for Loan Losses
   
3,364
     
3,127
     
9,626
     
9,297
 
                                 
NON-INTEREST INCOME
                               
Gain on Sale of Loans
   
541
     
590
     
1,926
     
1,744
 
      Gain on Sale of Real Estate
   
--
     
--
     
110
     
--
 
Income on Bank Owned Life Insurance
   
36
     
39
     
110
     
120
 
      Service Charges on Deposit Accounts
   
194
     
138
     
541
     
410
 
Other Income
   
14
     
8
     
37
     
34
 
Total Non-Interest Income
   
785
     
775
     
2,724
     
2,308
 
                                 
NON-INTEREST EXPENSE
                               
Compensation and Benefits
   
1,778
     
1,749
     
5,237
     
5,059
 
Occupancy and Equipment
   
304
     
275
     
922
     
789
 
Data Processing
   
128
     
140
     
442
     
417
 
Audit and Examination Fees
   
56
     
56
     
189
     
189
 
Franchise and Bank Shares Tax
   
91
     
83
     
292
     
266
 
Advertising
   
121
     
55
     
287
     
181
 
Legal Fees
   
100
     
133
     
328
     
351
 
Loan and Collection
   
92
     
74
     
240
     
191
 
Deposit Insurance Premium
   
27
     
45
     
92
     
165
 
Other Expense
   
172
     
140
     
461
     
443
 
Total Non-Interest Expense
   
2,869
     
2,750
     
8,490
     
8,051
 
Income Before Income Taxes
   
1,280
     
1,152
     
3,860
     
3,554
 
                                 
PROVISION FOR INCOME TAX EXPENSE
 
 
428
   
 
378
   
 
1,243
   
 
1,158
 
Net Income
 
$
852
   
$
774
   
$
2,617
   
$
2,396
 
EARNINGS PER SHARE:
                               
Basic
 
$
0.47
   
$
0.42
   
$
1.44
   
$
1.27
 
Diluted
 
$
0.44
   
$
0.40
   
$
1.38
   
$
1.22
 
DIVIDENDS DECLARED
 
$
0.09
   
$
0.08
   
$
0.27
   
$
0.24
 
 
 
 
 
 
 
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,
 
   
2017
   
2016
   
2017
   
2016
 
   
(In Thousands)
   
(In Thousands)
 
                         
Net Income
 
$
852
   
$
774
   
$
2,617
   
$
2,396
 
                                 
Other Comprehensive Income (Loss), Net of Tax
                               
   Unrealized Holding Gain (Loss) on Securities Available-for-Sale,
     Net of Tax of $40 and $282 in 2017, respectively, and $14 and $116 in 2016, respectively
   
78
     
27
     
(547
)
   
(224
)
                                 
        Total Comprehensive Income
 
$
930
   
$
801
   
$
2,070
   
$
2,172
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
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, 2017 AND 2016
(Unaudited)
 
 
   
 
 
Common
Stock
   
 
Additional
Paid-in
Capital
   
 
Unearned
ESOP
Stock
   
Unearned
RRP
Trust
Stock
   
 
 
Retained
Earnings
   
Accumulated
Other
Comprehensive
Income (Loss)
   
 
Total
Stockholders'
Equity
 
                                           
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
 
                                                         
BALANCE – June 30, 2016
 
$
23
   
$
33,863
   
$
(1,331
)
 
$
(265
)
 
$
11,018
   
$
84
   
$
43,392
 
                                                         
Net Income
   
--
     
--
     
--
     
--
     
2,617
     
--
     
2,617
 
                                                         
Changes in Unrealized Gain on
     Securities Available-for-Sale,
     Net of Tax Effects
   
--
     
--
     
--
     
--
     
--
     
(547
)
   
(547
)
                                                         
RRP Shares Earned
   
--
     
9
     
--
     
219
     
--
     
--
     
228
 
                                                         
Stock Options Vested
   
--
     
194
     
--
     
--
     
--
     
--
     
194
 
                                                         
Common Stock Issuance for
    Share Awards Earned
   
--
     
138
     
--
     
--
     
--
     
--
     
138
 
                                                         
Common Stock Issuance for
     Stock Option Exercises 
--
     
61
     
--
     
--
     
--
     
--
     
61
 
                                                         
ESOP Compensation Earned
   
--
     
131
     
87
     
--
     
--
     
--
     
218
 
                                                         
Company Stock Purchased
   
--
     
--
     
--
     
--
     
(592
)
   
--
     
(592
)
                                                         
Dividends Declared
   
--
     
--
     
--
     
--
     
(529
)
   
--
     
(529
)
                                                         
BALANCE – March 31, 2017
 
$
23
   
$
34,396
   
$
(1,244
)
 
$
(46
)  
$
12,514
   
$
(463
)
 
$
45,180
 

 
 
 
 
 
 
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,
 
   
2017
   
2016
 
   
(In Thousands)
 
CASH FLOWS FROM OPERATING ACTIVITIES
           
Net Income
 
$
2,617
   
$
2,396
 
Adjustments to Reconcile Net Income to Net
               
Cash Provided by Operating Activities
               
Net Amortization and Accretion on Securities
   
28
     
12
 
Gain on Sale of Real Estate
   
(110
)
   
--
 
Gain on Sale of Loans
   
(1,926
)
   
(1,744
)
Amortization of Deferred Loan Fees
   
(51
)
   
(53
)
Depreciation of Premises and Equipment
   
374
     
313
 
ESOP Expense
   
218
     
194
 
Stock Option Expense
   
194
     
155
 
Recognition and Retention Plan Expense
   
140
     
174
 
Share Awards Expense
   
104
     
58
 
Deferred Income Tax
   
(321
)
   
(107
)
Provision for Loan Losses
   
755
     
181
 
Increase in Cash Surrender Value on Bank Owned Life Insurance
   
(110
)
   
(120
)
Bad Debt Recovery
   
12
     
53
 
Changes in Assets and Liabilities:
               
Loans Held-for-Sale – Originations and Purchases
   
(79,773
)
   
(69,078
)
Loans Held-for-Sale – Sale and Principal Repayments
   
87,741
     
77,741
 
Accrued Interest Receivable
   
(88
)
   
(49
)
Other Operating Assets
   
38
     
159
 
Other Operating Liabilities
   
(276
)
   
(21
)
                 
Net Cash Provided by Operating Activities
   
9,566
     
10,264
 
                 
CASH FLOWS FROM INVESTING ACTIVITIES
               
Loan Originations and Purchases, Net of Principal Collections
   
(19,175
)
   
(14,141
)
Deferred Loan Fees Collected
   
105
     
22
 
Acquisition of Premises and Equipment
   
(376
)
   
(2,346
)
Proceeds from Sale of Real Estate
   
423
     
--
 
Activity in Available-for-Sale Securities:
               
Principal Payments on Mortgage-Backed Securities
   
10,335
     
8,038
 
Purchases of Securities
   
--
     
(5,992
)
Activity in Held-to-Maturity Securities:
               
Principal Payments on Mortgage-Backed Securities
   
1,109
     
--
 
Redemption Proceeds
   
--
     
509
 
Purchases of Securities
   
(27,674
)
   
(8
)
                 
Net Cash Used In Investing Activities
   
(35,253
)
   
(13,918
)
                 
 
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,
 
   
2017
   
2016
 
   
(In Thousands)
 
CASH FLOWS FROM FINANCING ACTIVITIES
     
Net Increase in Deposits
 
$
38,622
   
$
4,415
 
Proceeds from Federal Home Loan Bank Advances
   
656,900
     
70,500
 
Repayments of Advances from Federal Home Loan Bank
   
(661,892
)
   
(81,684
)
Net Increase in Advances from Borrowers for Taxes and Insurance
   
(279
)
   
(100
)
Dividends Paid
   
(529
)
   
(500
)
Company Stock Purchased
   
(592
)
   
(2,717
)
Proceeds from Stock Options Exercised
   
61
     
85
 
Proceeds from other Bank Borrowings
   
300
     
1,800
 
Repayment of Other Borrowings
   
(700
)
   
(1,800
)
Recognition and Retention Plan Share Distributions
   
--
     
36
 
                 
Net Cash Provided by (Used In) Financing Activities
   
31,891
     
(9,965
)
                 
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
   
6,204
     
(13,619
)
                 
CASH AND CASH EQUIVALENTS - BEGINNING OF PERIOD
   
4,756
     
21,166
 
                 
CASH AND CASH EQUIVALENTS - END OF PERIOD
 
$
10,960
   
$
7,547
 
                 
SUPPLEMENTARY CASH FLOW INFORMATION
               
Interest Paid on Deposits and Borrowed Funds
 
$
1,998
   
$
1,987
 
Income Taxes Paid
   
1,522
     
1,223
 
Market Value Adjustment for Loss on Securities Available-for-Sale
   
(829
)
   
(341
)
 
 
 
 
 
 
 
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, 2017 are not necessarily indicative of the results which may be expected for the fiscal year ending June 30, 2017.

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 consolidated 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, 2017.  In preparing these consolidated financial statements, the Company evaluated the events and transactions that occurred through the date these consolidated financial statements were issued.

Use of Estimates

In preparing consolidated financial statements in conformity with accounting principles generally accepted in the United States of America, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the Consolidated Statements of Financial Condition and reported amounts of revenues and expenses during the reporting period.  Actual results could differ from those estimates.  Material estimates that are particularly susceptible to significant change in the near term relate to the allowance for 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 six full-service banking offices and home office, located in Caddo and Bossier Parishes, Louisiana.  The area served by the Bank is primarily the Shreveport-Bossier City metropolitan area; however, loan and deposit customers are found dispersed in a wider geographical area covering much of northwest Louisiana. As of March 31, 2017, 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 of origination.

 
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 as unpaid principal balances less allowances for loan losses and unamortized deferred loan fees.  Net nonrefundable fees (loan origination fees, commitment fees, discount points) and costs associated with lending activities are being deferred and subsequently amortized into income as an adjustment of yield on the related interest earning assets using the interest method.  Interest income on contractual loans receivable is recognized on the accrual method.  Unearned discount on property improvement and automobile loans is deferred and amortized on the interest method over the life of the loan.

Allowance for Loan Losses

The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings.  Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed.  Subsequent recoveries, if any, are credited to the allowance.

The allowance for loan losses is evaluated on a regular basis by management and is based upon management's periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower's ability to repay, estimated value of the underlying collateral, and prevailing economic conditions.  The evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available.

A loan is considered impaired when, based on current information or events, it is probable that the Bank will be unable to collect the scheduled payments of principal and interest when due according to the contractual terms of the loan agreement.  When a loan is impaired, the measurement of such impairment is based upon the present value of 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.
 
 
8

HOME FEDERAL BANCORP, INC. OF LOUISIANA

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

Allowance for Loan Losses (continued)

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.

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.



 
 
9

HOME FEDERAL BANCORP, INC. OF LOUISIANA

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

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, 2016 and March 31, 2017 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 May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606).  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.  In August 2015, the FASB issued ASU 2015-14 which deferred the effective date of ASU 2014-09 making it effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period.  In April 2016, the FASB issued ASU 2016-10 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update clarify the following two aspects of Topic 606: identifying performance obligations and the licensing implementation guidance, while retaining the related principles for those areas.  In May 2016, the FASB issued ASU 2016-12 which does not change the core principle of the guidance in Topic 606.  The amendments in this Update affect only certain narrow aspects of Topic 606.  Management is currently assessing the impact to the Company's consolidated financial statements.

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 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 in this Update exempt all entities that are not public business entities from disclosing fair value information for financial instruments measured at amortized cost.  In addition, for public business entities, 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.
 
11

HOME FEDERAL BANCORP, INC. OF LOUISIANA

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

Recent Accounting Pronouncements (continued)

For public business entities, 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 standard is not expected to have a material impact on the Company's consolidated financial statements.

In February 2016, the FASB issued ASU 2016-02, Leases.  From the lessee's perspective, the new standard establishes a right-of-use (ROU) model that requires a lessee to record ROU asset and a lease liability on the balance sheet for all leases with terms longer than 12 months.  Leases will be classified as either finance or operating, with classification affecting pattern of expense recognition in the income statement for a lessee.  The new standard is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years.  A modified retrospective transition approach is required for lessees for capital and operating leases existing at, or entered into after, the beginning of the earliest comparative period presented in the consolidated financial statements, with certain practical expedients available.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In March 2016, the FASB issued ASU 2016-09, Compensation – Stock Compensation (Topic 718).  This Update is being issued as part of the Simplification Initiative.  The areas of simplification in this Update involve several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows.  Some areas only apply to nonpublic entities.  For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within those annual periods.  The adoption of this guidance is not expected to have a material effect on the Company's consolidated financial statements.

In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The amendments in this Update replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates.  For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years.  The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

In January 2017, the FASB issued ASU 2017-03, Accounting Changes and Error Corrections (Topic 250) and Investments - Equity Method and Joint Ventures (Topic 323).   This Update addresses and codifies the practical considerations and application of the required disclosures under SAB Topic 11.M for the implementation of ASU 2014-09, Revenue from Contracts with Customers (Topic 606); ASU 2016-02, Leases (Topic 842); and ASU 2016-13, Financial Instruments-Credit Losses (Topic 326). The SEC Staff has emphasized on a number of occasions, including the December 2016 AICPA National Conference on Current SEC and PCAOB Developments, the requirements to disclose the potential material effects of newly issued standards and the importance of providing investors with this information. Such disclosures should explain the impact the new standard is expected to have on the financial statements and how the adoption of the new standard will affect comparability.  Entities should discuss both quantitative and qualitative information as available when assessing implementation of a new standard.  This ASU was effective immediately for public business entities.
 
In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350).  The amendments in this Update eliminate Step 2 from the goodwill impairment test.  For public business entities that are SEC filers, the amendments in this Update are effective for fiscal years beginning after December 15, 2020.  The adoption of this standard is not expected to have a material impact on the Company's consolidated financial statements.

In March 2017, the FASB issued ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20).  This Update was issued in response to diversity in practice in the amortization period for premiums of callable debt securities and in how the potential for exercise of a call is factored into current impairment assessments.  As such, these amendments reduce the amortization period for certain callable debt securities carried at a premium and require the premium to be amortized over the period not to exceed the earliest call date.  These amendments do not apply to securities carried at a discount.  The effective date of this Update is for fiscal years beginning on or after December 15, 2018. The Company does not expect ASU 2017-08 to have a material impact on its consolidated financial statements.
 
 
12

 
HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
2. Securities

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

   
March 31, 2017
 
         
Gross
   
Gross
       
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
Losses
   
Value
 
   
(In Thousands)
 
Securities Available-for-Sale
                       
                         
Debt Securities
                       
  FHLMC Mortgage-Backed Certificates
 
$
9,345
   
$
6
   
$
382
   
$
8,969
 
  FNMA Mortgage-Backed Certificates
   
21,184
     
273
     
392
     
21,065
 
  GNMA Mortgage-Backed Certificates
   
9,170
     
3
     
209
     
8,964
 
                                 
          Total Debt Securities
   
39,699
     
282
     
983
     
38,998
 
                                 
    Total Securities Available-for-Sale
 
$
39,699
   
$
282
   
$
983
   
$
38,998
 
                                 
Securities Held-to-Maturity
                               
                                 
Debt Securities
                               
  FNMA Mortgage-Backed Certificates
 
$
26,109
   
$
--
   
$
586
   
$
25,523
 
Equity Securities (Non-Marketable)
                               
  25,384 shares – Federal Home Loan Bank
   
2,538
     
--
     
--
     
2,538
 
  630 Shares – First National Bankers Bankshares, Inc.
   
250
     
--
     
--
     
250
 
                                 
Total Equity Securities
   
2,788
     
--
     
--
     
2,788
 
                                 
Total Securities Held-to-Maturity
 
$
28,897
   
$
--
   
$
586
   
$
28,311
 

   
June 30, 2016
 
         
Gross
   
Gross
       
   
Amortized
   
Unrealized
   
Unrealized
   
Fair
 
   
Cost
   
Gains
   
Losses
   
Value
 
   
(In Thousands)
 
Securities Available-for-Sale
     
                         
Debt Securities
                       
  FHLMC Mortgage-Backed Certificates
 
$
10,928
   
$
12
   
$
147
   
$
10,793
 
  FNMA Mortgage-Backed Certificates
   
26,610
     
613
     
--
     
27,223
 
  GNMA Mortgage-Backed Certificates
   
12,507
     
4
     
354
     
12,157
 
                                 
          Total Debt Securities
   
50,045
     
629
     
501
     
50,173
 
                                 
          Total Securities Available-for-Sale
 
$
50,045
   
$
629
   
$
501
   
$
50,173
 
                                 
Securities Held-to-Maturity
                               
                                 
Equity Securities (Non-Marketable)
                               
  20,989 shares – Federal Home Loan Bank
 
$
2,099
   
$
--
   
$
--
   
$
2,099
 
  630 Shares – First National Bankers Bankshares, Inc.
   
250
     
--
     
--
     
250
 
                                 
          Total Equity Securities
   
2,349
     
--
     
--
     
2,349
 
                                 
          Total Securities Held-to-Maturity
 
$
2,349
   
$
--
   
$
--
   
$
2,349
 


13

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
 
2. Securities (continued)

The amortized cost and fair value of securities by contractual maturity at March 31, 2017 follows:

   
Available-for-Sale
   
Held-to-Maturity
 
   
Amortized
   
Fair
   
Amortized
   
Fair
 
   
Cost
   
Value
   
Cost
   
Value
 
   
(In Thousands)
 
Debt Securities
                       
    Within One Year or Less
 
$
16
   
$
17
   
$
--
   
$
--
 
    One through Five Years
   
60
     
62
     
--
     
--
 
    After Five through Ten Years
   
62
     
64
     
--
     
--
 
    Over Ten Years
   
39,561
     
38,855
     
26,109
     
25,523
 
     
39,699
     
38,998
     
26,109
     
25,523
 
                                 
Other Equity Securities
   
--
     
--
     
2,788
     
2,788
 
                                 
   Total
 
$
39,699
   
$
38,998
   
$
28,897
   
$
28,311
 

There were no sales of available-for-sale securities during the nine months ended March 31, 2017.

The following tables show information pertaining to gross unrealized losses on securities available-for-sale at March 31, 2017 and at June 30, 2016 aggregated by investment category and length of time that individual securities have been in a continuous loss position.

   
March 31, 2017
 
   
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
 
$
404
   
$
13,055
   
$
579
   
$
21,693
 
                                 
        Total Securities Available-for-Sale
 
$
404
   
$
13,055
   
$
579
   
$
21,693
 

   
June 30, 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
 
$
147
   
$
17,852
   
$
354
   
$
12,066
 
                                 
        Total Securities Available-for-Sale
 
$
147
   
$
17,852
   
$
354
   
$
12,066
 

Management evaluates each quarter whether unrealized losses on securities represent impairment that is other than temporary. For debt securities, the Company considers its intent to sell the securities or if it is more likely than not the Company will be required to sell the securities.  If such impairment is identified, based upon the intent to sell or the more likely than not threshold, the carrying amount of the security is reduced to fair value with a charge to earnings. Upon the result of the aforementioned review, management then reviews for potential other than temporary impairment based upon other qualitative factors. In making this evaluation, management considers changes in market rates relative to those available when the security was acquired, changes in market expectations about the timing of cash flows from securities that can be prepaid, performance of the debt security, and changes in the market's perception of the issuer's financial health and the security's credit quality.  If determined that a debt security has incurred other than temporary impairment, then the amount of the credit related impairment is determined.

14

 
HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
2. Securities (continued)

The unrealized losses as of March 31, 2017 and June 30, 2016 on the Company's investments were caused by interest rate changes.  Because the decline in market value is attributable to changes in interest rates and not credit quality, and because the Company has the ability and intent to hold these investments until a recovery of fair value, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired.
 
At March 31, 2017, securities with a carrying value of $920,000 were pledged to secure public deposits, and securities and mortgage loans with a carrying value of $205.4 million were pledged to secure FHLB advances.

3. Loans Receivable

Loans receivable are summarized as follows:

   
 
March 31, 2017
   
June 30, 2016
 
     
(In Thousands)
 
Loans Secured by Mortgages on Real Estate
           
One- to Four-Family Residential
 
$
120,446
   
$
118,035
 
Commercial
   
73,948
     
69,197
 
Multi-Family Residential
   
19,050
     
20,661
 
 Land
   
24,399
     
24,308
 
Construction
   
13,821
     
14,442
 
Equity and Second Mortgage
   
1,486
     
1,526
 
Equity Lines of Credit
   
20,150
     
17,290
 
Total Mortgage Loans
   
273,300
     
265,459
 
                 
Commercial Loans
   
35,540
     
27,886
 
Consumer Loans
               
Loans on Savings Accounts
   
377
     
404
 
Automobile and Other Consumer Loans
   
65
     
86
 
Total Consumer and Other Loans
   
442
     
490
 
Total Loans
   
309,282
     
293,835
 
                 
Less:  Allowance for Loan Losses
   
(3,582
)
   
(2,845
)
     Unamortized Loan Fees
   
(216
)
   
(163
)
Net Loans Receivable
 
$
305,484
   
$
290,827
 

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

   
Nine Months Ended March 31,
 
 
 
2017
   
2016
 
   
(In Thousands)
 
             
Balance - Beginning of Period
 
$
2,845
   
$
2,515
 
Provision for Loan Losses
   
755
     
181
 
Loan Charge-Offs
   
(30
)
   
--
 
Recoveries
   
12
     
53
 
Balance - End of Period
 
$
3,582
   
$
2,749
 

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

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
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 March 31, 2017 and June 30, 2016:

           Special                    
March 31, 2017     Pass      Mention      Substandard      Doubtful      Total  
                 (In Thousands)              
Real Estate Loans:
                             
  One- to Four-Family Residential
 
$
119,643
   
$
520
   
$
283
   
$
--
   
$
120,446
 
  Commercial
   
73,687
     
--
     
261
     
--
     
73,948
 
  Multi-Family Residential
   
19,050
     
--
     
--
     
--
     
19,050
 
  Land
   
24,276
     
123
     
--
     
--
     
24,399
 
  Construction
   
13,523
     
298
     
--
     
--
     
13,821
 
  Equity and Second Mortgage
   
1,486
     
--
     
--
     
--
     
1,486
 
  Equity Lines of Credit
   
20,150
     
--
     
--
     
--
     
20,150
 
Commercial Loans
   
33,027
     
--
     
2,513
     
--
     
35,540
 
Consumer Loans
   
442
     
--
     
--
     
--
     
442
 
     Total
 
$
305,284
   
$
941
   
$
3,057
   
$
--
   
$
309,282
 
                                         

 
 
 
 
16

HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
3. Loans Receivable (continued)
 
Credit Quality Indicators (continued)
 
                     
June 30, 2016
 
Pass
   
Special
Mention
   
Substandard
   
Doubtful
   
Total
 
   
(In Thousands)
 
Real Estate Loans:
                             
  One- to Four-Family Residential
 
$
117,881
   
$
40
   
$
114
   
$
--
   
$
118,035
 
  Commercial
   
68,899
     
30
     
268
     
--
     
69,197
 
  Multi-Family Residential
   
20,661
     
--
     
--
     
--
     
20,661
 
  Land
   
23,753
     
555
     
--
     
--
     
24,308
 
  Construction
   
14,442
     
--
     
--
     
--
     
14,442
 
  Equity and Second Mortgage
   
1,526
     
--
     
--
     
--
     
1,526
 
  Equity Lines of Credit
   
17,290
     
--
     
--
     
--
     
17,290
 
Commercial Loans
   
25,896
     
--
     
1,990
     
--
     
27,886
 
Consumer Loans
   
490
     
--
     
--
     
--
     
490
 
                                         
     Total
 
$
290,838
   
$
625
   
$
2,372
   
$
--
   
$
293,835
 

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, 2017 and June 30, 2016:

March 31, 2017
 
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
 
$
790
   
$
136
   
$
318
   
$
1,244
   
$
119,202
   
$
120,446
   
$
--
 
  Commercial
   
--
     
--
     
--
     
--
     
73,948
     
73,948
     
--
 
  Multi-Family Residential
   
--
     
--
     
--
     
--
     
19,050
     
19,050
     
--
 
  Land
   
--
     
--
     
--
     
--
     
24,399
     
24,399
     
--
 
  Construction
   
--
     
--
     
--
     
--
     
13,821
     
13,821
     
--
 
  Equity and Second Mortgage
   
--
     
--
     
--
     
--
     
1,486
     
1,486
     
--
 
  Equity Lines of Credit
   
132
     
--
     
--
     
132
     
20,018
     
20,150
     
--
 
Commercial Loans
   
9
     
--
     
2,513
     
2,522
     
33,018
     
35,540
     
--
 
Consumer Loans
   
--
     
--
     
--
     
--
     
442
     
442
     
--
 
     Total
 
$
931
   
$
136
   
$
2,831
   
$
3,898
   
$
305,384
   
$
309,282
   
$
--
 
 
 
 
 
 
 
 
17

 
HOME FEDERAL BANCORP, INC. OF LOUISIANA

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued)
 
3. Loans Receivable (continued)

Credit Quality Indicators (continued)

 June 30, 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
 
$
2,646
   
$
1,674
   
$
114
   
$
4,434
   
$
113,601
   
$
118,035
   
$
101
 
  Commercial
   
--
     
--
     
--
     
--
     
69,197
     
69,197
     
--
 
  Multi-Family Residential
   
--
     
--
     
--
     
--
     
20,661
     
20,661
     
--
 
  Land
   
--
     
555
     
--
     
555
     
23,753
     
24,308
     
--
 
  Construction
   
--
     
--
     
--
     
--
     
14,442
     
14,442
     
--
 
  Equity and Second Mortgage