Sounds like it isn't actually doing the reset. I am going to include the correct instructions for it below. If it still does this (or they are the exact steps you followed) and you made sure not to reset it to keep files, then you may want to try starting up in "Safe Mode". I will also include those instructions. If it lets you in that way, then the reset didn't happen and something on the device needs to be removed to resolve the issue. If it won't, even in "Safe Mode" then there may be something more wrong with the device.
NOTE: Doing this will clear 'all' the data on your phone, so it is suggested you not choose this option unless you have to, or aren't worried about losing anything on the phone.
Be sure you back up any data you want to keep, to a computer or cloud account, before doing the reset.
To "Hard Reset" the phone...
1. Make sure that the phone is actually powered off.
2. Remove your SD card, if there is one in the device.
3. Press the "Power" and the "Volume Up" buttons, together, until you see the start-up logo on the screen.
4. Once you can see the logo, release the buttons and allow the device to enter the "System Recovery Mode".
5. Next use "Volume Down" button to get to the "wipe data/factory reset" option When in recovery mode the "Volume Up" and "Volume Down" buttons are how to can navigate and highlight what option you need.
6. Once you have selected the "wipe data/factory reset", press the "Power" button to select that option.
7. On the following screen, repeatedly press the "Volume Down" button until the "Yes - delete all user data" option is what is selected.
8. Then press the "Power" button to hard reset the phone.
9. If you took your SD card out in step 2, when the device is up and running again, reinsert the SD card.
To get into "Safe Mode" please do the following.
1. First turn off the phone.
2. Next press and hold "Power" until you see the manufacturers logo on the screen, then release the power button.
3. "Quickly" press "Volume Down" and hold it for few seconds until you see the message "Safe mode: ON" or something similar.
4. If you wanted disable it, simply repeat the steps above, and you should see "Safe Mode: OFF" rather than on.