HVBC 2016 Annual Report

11 Delinquent Loans . The following table sets forth our loan delinquencies, including non-accrual loans, by type and amount at the dates indicated. Loans Delinquent For 60-89 Days 90 Days and Over Total Number Amount Number Amount Number Amount (Dollars in thousands) At June 30, 2017 Residential: One- to four-family 4 $ 381 10 $ 950 14 $ 1,331 Home equity & HELOCs — — 2 110 2 110 Commercial real estate — — 1 100 1 100 Commercial business — — — — — — Construction — — — — — — Consumer — — — — — — Total 4 $ 381 13 $ 1,160 17 $ 1,541 At June 30, 2016 Residential: One- to four-family 3 $ 317 5 $ 659 8 $ 976 Home equity & HELOCs 1 79 2 227 3 306 Commercial real estate — — 1 100 1 100 Commercial business — — — — — — Construction — — — — — — Consumer — — — — — — Total 4 $ 396 8 $ 986 12 $ 1,382 At June 30, 2015 Residential: One- to four-family 2 $ 156 12 $ 1,277 14 $ 1,433 Home equity & HELOCs — — 2 147 2 147 Commercial real estate — — 2 226 2 226 Commercial business — — — — — — Construction — — — — — — Consumer — — — — — — Total 2 $ 156 16 $ 1,650 18 $ 1,806 Non-Performing Loans. Loans are automatically placed on non-accrual status when payment of principal or interest is more than 90 days delinquent. Loans are also placed on non-accrual status if collection of principal or interest in full is in doubt or if the loan has been restructured. Loans are classified as restructured when certain modifications are made to the loan terms and concessions are granted to the borrowers due to financial difficulty experienced by those borrowers. At June 30, 2017, we had no non-accruing troubled debt restructurings. When loans are placed on non-accrual status, unpaid accrued interest is fully reversed, and further income is recognized only to the extent received. The loan may be returned to accrual status if unpaid principal and interest are repaid so that the loan is less than 90 days delinquent. Interest income that would have been recorded for the year ended June 30, 2017 had non-accruing loans been current according to their original terms amounted to $84,000. We recognized $63,000 of interest income for these loans for the year ended June 30, 2017. Other Real Estate Owned . Other real estate owned includes assets acquired through, or in lieu of, loan foreclosure and are held for sale and are initially recorded at fair value less estimated selling costs at the date of foreclosure establishing a new cost basis. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of the new cost basis or fair value less estimated selling costs. Revenue and expenses from operations and changes in the valuation allowance are included in operations. We had no other real estate owned at June 30, 2017 as compared to $115,000 as of June 30, 2016.