v2.4.0.6
Document And Entity Information (USD $)
12 Months Ended
Jun. 30, 2013
Sep. 03, 2013
Dec. 31, 2012
Document Information [Line Items]      
Entity Registrant Name CONSUMERS BANCORP INC /OH/    
Entity Central Index Key 0001006830    
Current Fiscal Year End Date --06-30    
Entity Filer Category Smaller Reporting Company    
Trading Symbol CBKM    
Entity Common Stock, Shares Outstanding   2,724,388  
Document Type 10-K    
Amendment Flag false    
Document Period End Date Jun. 30, 2013    
Document Fiscal Period Focus FY    
Document Fiscal Year Focus 2013    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Public Float     $ 19,967,759
v2.4.0.6
CONSOLIDATED BALANCE SHEETS (USD $)
In Thousands, unless otherwise specified
Jun. 30, 2013
Jun. 30, 2012
ASSETS:    
Cash on hand and noninterest-bearing deposits in financial institutions $ 6,922 $ 6,663
Federal funds sold and interest-bearing deposits in financial institutions 2,434 7,082
Total cash and cash equivalents 9,356 13,745
Certificate of deposits in financial institutions 4,175 5,645
Securities, available-for-sale 97,229 105,335
Securities, held-to-maturity (fair value 2013 $2,926) 3,000 0
Federal bank and other restricted stocks, at cost 1,186 1,186
Loans held for sale 93 377
Total loans 217,040 197,430
Less allowance for loan losses (2,496) (2,335)
Net loans 214,544 195,095
Cash surrender value of life insurance 5,789 5,605
Premises and equipment, net 5,708 5,752
Accrued interest receivable and other assets 2,409 2,021
Total assets 343,489 334,761
LIABILITIES:    
Non-interest bearing demand 71,148 65,915
Interest bearing demand 37,529 35,055
Savings 106,221 99,041
Time 79,209 84,470
Total deposits 294,107 284,481
Short-term borrowings 12,490 13,722
Federal Home Loan Bank advances 6,366 6,446
Accrued interest payable and other liabilities 2,383 2,222
Total liabilities 315,346 306,871
Commitments and contingent liabilities 0 0
SHAREHOLDERS' EQUITY:    
Preferred stock, no par value; 350,000 shares authorized 0 0
Common shares, no par value; 3,500,000 shares authorized; 2,198,465 and 2,186,791 shares issued as of June 30, 2013 and 2012, respectively 5,393 5,205
Retained earnings 24,416 22,740
Treasury stock, at cost (129,855 and 130,442 common shares at June 30, 2013 and 2012, respectively) (1,650) (1,659)
Accumulated other comprehensive income (16) 1,604
Total shareholders' equity 28,143 27,890
Total liabilities and shareholders' equity $ 343,489 $ 334,761
v2.4.0.6
CONSOLIDATED BALANCE SHEETS [Parenthetical] (USD $)
In Thousands, except Share data, unless otherwise specified
Jun. 30, 2013
Jun. 30, 2012
Preferred stock, shares authorized 350,000 350,000
Common stock, shares authorized 3,500,000 3,500,000
Common stock, shares issued 2,198,465 2,186,791
Treasury stock, shares 129,855 130,442
Held-to-maturity Securities, Fair Value $ 2,926  
v2.4.0.6
CONSOLIDATED STATEMENTS OF INCOME (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Interest income:    
Loans, including fees $ 10,549 $ 10,167
Federal funds sold and interest-bearing deposits in financial institutions 60 57
Securities, taxable 1,263 1,802
Securities, tax-exempt 1,269 1,052
Total interest and dividend income 13,141 13,078
Interest expense:    
Deposits 981 1,200
Short-term borrowings 22 29
Federal Home Loan Bank advances 199 230
Total interest expense 1,202 1,459
Net interest income 11,939 11,619
Provision for loan losses 337 315
Net interest income after provision for loan losses 11,602 11,304
Other income:    
Service charges on deposit accounts 1,328 1,386
Debit card interchange income 796 743
Bank owned life insurance income 184 194
Gain on sale of mortgage loans 121 0
Securities gains, net 157 144
Loss on disposition of other real estate owned 0 (53)
Other 216 190
Total other income 2,802 2,604
Other expenses:    
Salaries and employee benefits 6,090 5,508
Occupancy and equipment 1,270 1,062
Data processing expenses 502 566
Professional and director fees 327 356
Federal Deposit Insurance Corporation assessments 203 194
Franchise taxes 286 267
Marketing and advertising 280 300
Loan and collection expenses 110 123
Amortization of intangible 0 89
Telephone and communications 280 240
Debit card processing expenses 392 389
Other 1,361 1,251
Total other expenses 11,101 10,345
Income before income taxes 3,303 3,563
Income tax expense 634 799
Net income $ 2,669 $ 2,764
Basic and diluted earnings per share (in dollars per share) $ 1.29 $ 1.35
v2.4.0.6
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Net income $ 2,669 $ 2,764
Other comprehensive income (loss), net of tax:    
Unrealized gains (loss) arising during the period (2,296) 1,076
Reclassification adjustment for gains included in income (157) (144)
Net unrealized gain (loss) (2,453) 932
Income tax effect (833) 316
Other Comprehensive Income (Loss), Available-for-sale Securities Adjustment, Net of Tax (1,620) 616
Other comprehensive income (loss) (1,620) 616
Total comprehensive income $ 1,049 $ 3,380
v2.4.0.6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (USD $)
In Thousands
Total
Common Stock [Member]
Retained Earnings [Member]
Treasury Stock [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Balance at Jun. 30, 2011 $ 25,324 $ 5,114 $ 20,881 $ (1,659) $ 988
Net income 2,764   2,764    
Other comprehensive income (loss) 616       616
Issuance of shares for dividend reinvestment and stock purchase plan 91 91      
Cash dividends declared (905)   (905)    
Balance at Jun. 30, 2012 27,890 5,205 22,740 (1,659) 1,604
Net income 2,669   2,669    
Other comprehensive income (loss) (1,620)       (1,620)
Issuance of shares for dividend reinvestment and stock purchase plan 188 188      
Cash dividends declared (993)   (993)    
Issuance of 691 shares for vested restricted stock awards, including tax benefit 104 Dividend reinvestment plan shares associated with forfeited and expired restricted stock awards transferred to treasury 9     9  
Balance at Jun. 30, 2013 $ 28,143 $ 5,393 $ 24,416 $ (1,650) $ (16)
v2.4.0.6
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY [Parenthetical] (USD $)
In Thousands, except Per Share data, unless otherwise specified
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Issuance of shares for vested restricted stock awards 691  
Common shares issued for dividend reinvestment and stock purchase plan (in shares) 11,674 6,476
Cash dividends declared (in dollars per share) $ 0.48 $ 0.44
Issuance of shares for vested restricted stock awards, including tax benefit $ 104  
v2.4.0.6
CONSOLIDATED STATEMENTS OF CASH FLOWS (USD $)
In Thousands, unless otherwise specified
12 Months Ended
Jun. 30, 2013
Jun. 30, 2012
Cash flows from operating activities:    
Net income $ 2,669 $ 2,764
Adjustments to reconcile net income to net cash flows from operating activities:    
Depreciation 558 369
Securities amortization and accretion, net 1,423 1,367
Provision for loan losses 337 315
Loss on disposition of other real estate owned 0 53
Net gain on sale of loans (121) 0
Deferred income taxes (96) (271)
Gain on sale of securities (157) (144)
Intangible amortization 0 89
Origination of loans held for sale (4,274) (377)
Proceeds from loans held for sale 4,679 0
Increase in cash surrender value of life insurance (184) (194)
Change in:    
Accrued interest receivable (1) (63)
Accrued interest payable (8) (26)
Other assets and other liabilities 721 757
Net cash flows from operating activities 5,546 4,639
Cash flows from investing activities:    
Purchases (24,791) (49,613)
Maturities, calls and principal pay downs 21,379 21,308
Proceeds from sales of available-for-sale securities 7,798 14,568
Securities held-to-maturity:    
Purchases (3,000) 0
Net (increase) decrease in certificates of deposit with other financial institutions 1,470 (745)
Net increase in loans (19,786) (19,960)
Acquisition of premises and equipment (514) (1,345)
Proceeds from sale of other real estate owned 0 23
Net cash flows from investing activities (17,444) (35,764)
Cash flows from financing activities:    
Net increase in deposit accounts 9,626 36,235
Repayments of FHLB advances (80) (1,089)
Change in short-term borrowings (1,232) (3,290)
Proceeds from dividend reinvestment and stock purchase plan 188 91
Dividends paid (993) (905)
Net cash flows from financing activities 7,509 31,042
Decrease in cash and cash equivalents (4,389) (83)
Cash and cash equivalents, beginning of year 13,745 13,828
Cash and cash equivalents, end of year 9,356 13,745
Supplemental disclosures of cash flow information:    
Interest 1,210 1,485
Federal income taxes paid 680 721
Noncash transactions:    
Issuance of treasury stock for restricted stock awards $ 9 $ 0
v2.4.0.6
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
12 Months Ended
Jun. 30, 2013
Organization, Consolidation and Presentation Of Financial Statements [Abstract]  
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
Unless otherwise indicated, dollar amounts are in thousands, except per share data.
 
Principles of Consolidation: The consolidated financial statements include the accounts of Consumers Bancorp, Inc. (Corporation) and its wholly owned subsidiary, Consumers National Bank (Bank), together referred to as the Corporation. All significant intercompany transactions have been eliminated in the consolidation.
 
Nature of Operations: Consumers Bancorp, Inc. is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, a broad array of products and services throughout its primary market area of Stark, Columbiana, Carroll and contiguous counties in Ohio. The Bank’s business involves attracting deposits from businesses and individual customers and using such deposits to originate commercial, mortgage and consumer loans in its primary market area.
 
Business Segment Information: Consumers Bancorp, Inc. is a bank holding company engaged in the business of commercial and retail banking, which accounts for substantially all of its revenues, operating income, and assets. Accordingly, all of its operations are reported in one segment, banking.
 
Use of Estimates: To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ. The allowance for loan losses, fair values of financial instruments, and determination of other-than-temporary impairment of securities are particularly subject to change.
 
Cash Flows: Cash and cash equivalents include cash, deposits with other financial institutions with original maturities of less than 90 days and federal funds sold.  Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings.
 
Interest–Bearing Deposits in Other Financial Institutions: Interest-bearing deposits in other financial institutions mature within one year and are carried at cost.
 
Cash Reserves: The Bank is required to maintain cash on hand and non-interest bearing balances on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements. The required reserve balance at June 30, 2013 and 2012 was $4,291 and $3,991, respectively.
 
Securities: Securities are generally classified into either held-to-maturity or available-for-sale categories. Held-to-maturity securities are carried at amortized cost and are those that the Corporation has the positive intent and ability to hold to maturity. Available-for-sale securities are those that the Corporation may decide to sell before maturity if needed for liquidity, asset-liability management, or other reasons. Available-for-sale securities are reported at fair value, with unrealized gains or losses included in other comprehensive income (loss) as a separate component of equity, net of tax.
 
Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.
 
Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than not that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do not meet the aforementioned criteria, the amount of impairment is split into two components as follows: 1) OTTI related to credit loss, which must be recognized in the income statement and 2) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.
 
Federal Bank and Other Restricted Stocks: The Bank is a member of the Federal Home Loan Bank (FHLB) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and may invest in additional amounts. FHLB stock, included with Federal bank and other restricted stocks on the Consolidated Balance Sheet, is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Federal Reserve Bank stock is also carried at cost. Since these stocks are viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income.
 
Loans Held for Sale: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.
 
Loans: Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable.
 
Interest income on commercial, commercial real estate and 1-4 family residential loans is discontinued at the time the loan is 90 days delinquent unless the loan is well-secured and in the process of collection. Consumer loans are typically charged off no later than 120 days past due. Past due status is determined by the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.
 
All interest accrued but not received on loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when the customer has exhibited the ability to repay and demonstrated this ability over at least a consecutive six month period and future payments are reasonably assured.
 
Loan Commitments and Related Financial Instruments: Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when funded.
 
Concentrations of Credit Risk: The Bank grants consumer, real estate and commercial loans primarily to borrowers in Stark, Columbiana and Carroll counties. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economy in this tri-county area. Automobiles and other consumer assets, business assets and residential and commercial real estate secure most loans.
 
Allowance for Loan Losses: The allowance for loan losses is a valuation allowance for probable incurred credit losses. 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. Management estimates the allowance balance required based on past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance may be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.
 
The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors.
 
A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered trouble debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the 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.
 
Impairment is evaluated in total for smaller-balance loans of similar nature such as residential mortgage, consumer loans and on an individual loan basis for other loans. If a loan is impaired, a portion of the allowance is allocated so the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected from the collateral. Loans are evaluated for impairment when payments are delayed, typically 90 days or more, or when it is probable that not all principal and interest amounts will be collected according to the original terms of the loan. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.
 
The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Corporation over the most recent three year period. This actual loss experience is supplemented with other economic factors based on the risks present for each portfolio segment. These economic factors include consideration of the following: levels of and trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified:
 
Commercial Loans: Commercial loans are made for a wide variety of general business purposes, including financing for equipment, inventories and accounts receivable. The term of each commercial loan varies by its purpose. Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Current and projected cash flows are evaluated to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and usually incorporate a personal guarantee; however, some short-term loans may be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans may be substantially dependent on the ability of the borrower to collect amounts due from its customers. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the areas where the Bank operates.
 
Commercial Real Estate: Commercial real estate loans include mortgage loans to farmers, multi-family investment properties, developers and owners of commercial real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Corporation’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Corporation’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.
 
Residential real estate: Residential real estate loans are secured by one to four family residential properties and include both owner occupied, non-owner occupied and home equity loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appropriately appraised value of the real estate securing the loan that generally requires that the residential real estate loan amount be no more than 80% of the purchase price or the appraised value of the real estate securing the loan. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are not limited to, a maximum loan-to-value percentage of 80%, collection remedies, the number of such loans a borrower can have at one time and documentation requirements.
 
Consumer Loans: The Corporation originates direct and indirect consumer loans, primarily automobile loans, personal lines of credit, and unsecured consumer loans in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.
 
Other Real Estate Owned: Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less costs to sell at the date of acquisition, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If the fair value declines after acquisition, a valuation allowance is recorded as a charge to income. Operating costs after acquisition are expensed. Gains and losses on disposition are reported as a charge to income.
 
Premises and Equipment: Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful life of the owned asset and, for leasehold improvements, generally over the lesser of the remaining term of the lease facility or the estimated economic life of the improvement. Useful lives range from three years for software to thirty-nine and one-half years for buildings.
 
Cash Surrender Value of Life Insurance: The Bank has purchased single-premium life insurance policies to insure the lives of current and former participants in the salary continuation plan. As of June 30, 2013, the Bank had policies with total death benefits of $12,103 and total cash surrender values of $5,789. As of June 30, 2012, the Bank had policies with total death benefits of $12,044 and total cash surrender values of $5,605. Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other changes or other amounts due that are probable at settlement. Tax-exempt income is recognized from the periodic increases in cash surrender value of these policies.
 
Long-term Assets: Premises, equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount may not be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.
 
Repurchase Agreements: Substantially all repurchase agreement liabilities, which are classified as short-term borrowings, represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are not covered by federal deposit insurance.
 
Retirement Plan: The Bank maintains a 401(k) savings and retirement plan covering all eligible employees. Matching contributions are made and expensed annually.
 
Income Taxes: The Corporation files a consolidated federal income tax return. Income tax expense is the sum of the current-year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Corporation applies a more likely than not recognition threshold for all tax uncertainties in accordance with U.S. generally accepted accounting principles. A tax position is recognized as a benefit only if it is more likely than not the position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit greater than 50% likely of being realized on examination. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.
 
Earnings per Common Share: Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable upon the vesting of restricted stock awards.
 
Stock-Based Compensation: Compensation cost is recognized for restricted stock awards issued to employees over the required service period, generally defined as the vesting period. The fair value of restricted stock awards is estimated by using the market price of the Corporation’s common stock at the date of grant. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.
 
Comprehensive Income (Loss): Comprehensive income (loss) consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, which are also recognized as a separate component of equity, net of tax.
 
Loss Contingencies: Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does not believe there are such matters that will have a material effect on the financial statements.
 
Fair Value of Financial Instruments: Fair values of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in a separate note. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, discounted cash flows, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.
 
 Dividend Restrictions: Banking regulations require maintaining certain capital levels and may limit the dividends paid by the Bank to the holding company or by the holding company to shareholders. As of June 30, 2013 the Bank could, without prior approval, declare a dividend of approximately $4,494.
 
Reclassifications: Certain reclassifications have been made to the June 30, 2012 financial statements to be comparable to the June 30, 2013 presentation. The reclassifications had no impact on prior year net income or shareholders’ equity.
 
Adoption of New Accounting Standards: In February 2013, the Financial Accounting Standards Board issued Accounting Standards Update (ASU) 2013-02, Comprehensive Income: Reporting of Amounts Classified out of Accumulated Other Comprehensive Income, with the primary objective of improving the reporting of reclassifications out of accumulated other comprehensive income. This ASU requires an entity to provide information about the amounts reclassified out of accumulated other comprehensive income by component. In addition, an entity is required to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income but only if the amount reclassified is required under U.S. GAAP to be reclassified to net income in its entirety in the same reporting period. The amendments are effective prospectively for fiscal years, and interim periods within those years, beginning after December 15, 2012. The Corporation early adopted the ASU as of March 31, 2013. The amendments did not have a material impact on Corporation’s Consolidated Financial Statements. See Note 15 for the additional disclosure.
v2.4.0.6
SECURITIES
12 Months Ended
Jun. 30, 2013
Investments, Debt and Equity Securities [Abstract]  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
NOTE 2—SECURITIES
 
The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at June 30, 2013 and 2012 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:
 
Available-for-sale
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored entities and agencies
 
$
4,700
 
$
6
 
$
(48)
 
$
4,658
 
Obligations of state and political subdivisions
 
 
39,777
 
 
805
 
 
(770)
 
 
39,812
 
Mortgage-backed securities - residential
 
 
46,834
 
 
552
 
 
(497)
 
 
46,889
 
Collateralized mortgage obligations
 
 
5,740
 
 
11
 
 
(43)
 
 
5,708
 
Trust preferred security
 
 
202
 
 
 
 
(40)
 
 
162
 
Total available-for-sale securities
 
$
97,253
 
$
1,374
 
$
(1,398)
 
$
97,229
 
 
Held-to-maturity
 
Amortized
Cost
 
Gross
Unrecognized
Gains
 
Gross
Unrecognized
Losses
 
Fair
Value
 
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of state and political subdivisions
 
$
3,000
 
$
 
$
(74)
 
$
2,926
 
Total held-to-maturity securities
 
$
3,000
 
$
 
$
(74)
 
$
2,926
 
 
Available-for-sale
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair
Value
 
June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of U.S. government sponsored entities and agencies
 
$
8,487
 
$
80
 
$
 
$
8,567
 
Obligations of state and political subdivisions
 
 
33,808
 
 
1,577
 
 
(109)
 
 
35,276
 
Mortgage-backed securities - residential
 
 
48,255
 
 
1,108
 
 
(32)
 
 
49,331
 
Collateralized mortgage obligations
 
 
12,154
 
 
25
 
 
(82)
 
 
12,097
 
Trust preferred security
 
 
202
 
 
 
 
(138)
 
 
64
 
Total available-for-sale securities
 
$
102,906
 
$
2,790
 
$
(361)
 
$
105,335
 
 
Proceeds from sales of debt securities during 2013 and 2012 were as follows:
 
 
2013
 
2012
 
Proceeds from sales
 
$
7,798
 
$
14,568
 
Gross realized gains
 
 
181
 
 
204
 
Gross realized losses
 
 
24
 
 
60
 
 
The amortized cost and fair values of debt securities at June 30, 2013 by contractual maturity are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, collateralized mortgage obligations and the trust preferred security are shown separately.
 
Available-for-sale
 
Amortized
Cost
 
Fair Value
 
Due after one year through five years
 
$
4,969
 
$
5,084
 
Due after five years through ten years
 
 
15,420
 
 
15,484
 
Due after ten years
 
 
24,088
 
 
23,902
 
Total
 
 
44,477
 
 
44,470
 
Mortgage-backed securities – residential
 
 
46,834
 
 
46,889
 
Collateralized mortgage obligations
 
 
5,740
 
 
5,708
 
Trust preferred security
 
 
202
 
 
162
 
Total
 
$
97,253
 
$
97,229
 
 
Held-to-maturity
 
Amortized
Cost
 
Fair Value
 
Due after ten years
 
$
3,000
 
$
2,926
 
Total
 
$
3,000
 
$
2,926
 
 
Securities with a carrying value of approximately $27,781 and $35,411 were pledged at June 30, 2013 and 2012, respectively, to secure public deposits and commitments as required or permitted by law. At June 30, 2013 and 2012, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, with an aggregate book value greater than 10% of shareholders’ equity.
 
The following table summarizes the securities with unrealized and unrecognized losses at June 30, 2013 and 2012, aggregated by investment category and length of time the individual securities have been in a continuous unrealized or unrecognized loss position:
 
 
 
Less than 12 Months
 
12 Months or more
 
Total
 
Available-for-sale
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of US government-sponsored entities and agencies
 
$
4,418
 
$
(48)
 
$
 
$
 
$
4,418
 
$
(48)
 
Obligations of states and political subdivisions
 
 
17,826
 
 
(766)
 
 
107
 
 
(4)
 
 
17,933
 
 
(770)
 
Mortgage-backed securities - residential
 
 
28,836
 
 
(497)
 
 
 
 
 
 
28,836
 
 
(497)
 
Collateralized mortgage obligations
 
 
4,696
 
 
(43)
 
 
 
 
 
 
4,696
 
 
(43)
 
Trust preferred security
 
 
 
 
 
 
162
 
 
(40)
 
 
162
 
 
(40)
 
Total temporarily impaired
 
$
55,776
 
$
(1,354)
 
$
269
 
$
(44)
 
$
56,045
 
$
(1,398)
 
 
 
 
Less than 12 Months
 
12 Months or more
 
Total
 
Held-to-maturity
 
Fair
Value
 
Unrecognized
Loss
 
Fair
Value
 
Unrecognized
Loss
 
Fair
Value
 
Unrecognized
Loss
 
June 30, 2013
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
 
$
3,000
 
$
(74)
 
$
 
$
 
$
2,926
 
$
(74)
 
Total temporarily impaired
 
$
3,000
 
$
(74)
 
$
 
$
 
$
2,926
 
$
(74)
 
 
 
 
Less than 12 Months
 
12 Months or more
 
Total
 
Available-for-sale
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
Fair
Value
 
Unrealized
Loss
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
June 30, 2012
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Obligations of U.S. government-sponsored entities
 
$
6,002
 
$
(109)
 
$
 
$
 
$
6,002
 
$
(109)
 
Obligations of states and political subdivisions
 
 
11,135
 
 
(32)
 
 
 
 
 
 
11,135
 
 
(32)
 
Collateralized mortgage obligations
 
 
6,411
 
 
(62)
 
 
2,314
 
 
(20)
 
 
8,725
 
 
(82)
 
Trust preferred security
 
 
 
 
 
 
64
 
 
(138)
 
 
64
 
 
(138)
 
Total temporarily impaired
 
$
23,548
 
$
(203)
 
$
2,378
 
$
(158)
 
$
25,926
 
$
(361)
 
 
Management evaluates securities for other-than-temporary impairment (OTTI) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC Topic 320, Accounting for Certain Investments in Debt and Equity Securities. However, the trust preferred security is evaluated using the model outlined in FASB ASC Topic 325, Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests that Continue to be Held by a Transfer in Securitized Financial Assets.
 
In determining OTTI under the ASC Topic 320 model, management considers many factors, including: (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, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.
 
Under the ASC Topic 325 model, the present value of the remaining cash flows as estimated at the preceding evaluation date are compared to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. The analysis of the trust preferred security falls within the scope of ASC Topic 325.
 
As of June 30, 2013, the Corporation’s securities portfolio consisted of $97,229 available-for-sale securities, of which $56,045 were in an unrealized loss position and a $3,000 held-to-maturity security with a $74 unrecognized loss. The majority of the unrealized losses are related to the Corporation’s obligations of states and political subdivisions and residential mortgage-backed securities, as discussed below:
 
Obligations of States and Political Subdivisions: At June 30, 2013, approximately 95.7% of the obligations of states and political subdivisions classified as available-for-sale were general obligation bonds and 4.3% were revenue bonds. The $3,000 security held-to-maturity is a revenue bond made to a local municipality. The unrealized and unrecognized losses were mainly attributable to the spreads for these types of securities being wider at June 30, 2013 than when these securities were purchased and changes in interest rates. Management monitors the financial data of the individual municipalities to ensure they meet minimum credit standards. Since the Corporation does not intend to sell these securities and it is not likely the Corporation will be required to sell these securities at an unrealized loss position prior to any anticipated recovery in fair value, which may be maturity, management does not believe there is any other-than-temporary impairment related to these securities at June 30, 2013.
 
Mortgage-Backed Securities and Collateralized Mortgage Obligations: At June 30, 2013, all of the mortgage-backed securities and collateralized mortgage obligations held by the Corporation were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae, Freddie Mac and Ginnie Mae, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to higher interest rates and higher than projected prepayment speeds increasing the premium amortization, and not credit quality, and because the Corporation does not have the intent to sell nor is it likely that it will be required to sell the securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired.
 
Trust Preferred Security: The Corporation owns a trust preferred security, which represents collateralized debt obligations (CDOs) issued by other banks, bank holding companies and insurance companies. The security is part of a pool of issuers that support a more senior tranche of securities. The cash interest payments for the trust preferred security are being deferred as a result of an increase in principal and/or interest deferrals by the issuers of the underlying securities during the period of 2008 through 2011. The accumulated other-than-temporary impairment loss recognized in earnings in periods prior to 2012 was $780. According to the June 30, 2013 cash flow analysis, the expected cash flows were above the recorded amortized cost of the trust preferred security and the Corporation has received pricing indications that are very near the securities adjusted amortized cost of $202. Therefore, management does not believe there is any additional other-than-temporary impairment related to this security at June 30, 2013. 
v2.4.0.6
LOANS
12 Months Ended
Jun. 30, 2013
Receivables [Abstract]  
Loans, Notes, Trade and Other Receivables Disclosure [Text Block]
NOTE 3—LOANS
 
Major classifications of loans were as follows as of June 30:
 
 
 
2013
 
2012
 
Commercial
 
$
26,678
 
$
23,041
 
Commercial real estate:
 
 
 
 
 
 
 
Construction
 
 
2,096
 
 
1,546
 
Other
 
 
125,630
 
 
110,775
 
1 – 4 Family residential real estate:
 
 
 
 
 
 
 
Owner occupied
 
 
32,755
 
 
34,000
 
Non-owner occupied
 
 
17,941
 
 
18,794
 
Construction
 
 
377
 
 
187
 
Consumer
 
 
11,866
 
 
9,407
 
Subtotal
 
 
217,343
 
 
197,750
 
Less: Deferred loan fees and costs
 
 
(303)
 
 
(320)
 
Allowance for loan losses
 
 
(2,496)
 
 
(2,335)
 
Net loans
 
$
214,544
 
$
195,095
 
 
The following table presents the activity in the allowance for loan losses by portfolio segment for the year ending June 30, 2013:
 
 
 
 
 
 
 
 
 
1-4 Family
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
 
 
 
Real
 
Real
 
 
 
 
 
 
 
 
 
Commercial
 
Estate
 
Estate
 
Consumer
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
143
 
$
1,283
 
$
712
 
$
197
 
$
2,335
 
Provision for loan losses
 
 
53
 
 
212
 
 
(35)
 
 
107
 
 
337
 
Loans charged-off
 
 
(35)
 
 
(24)
 
 
(64)
 
 
(115)
 
 
(238)
 
Recoveries
 
 
 
 
 
 
1
 
 
61
 
 
62
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total ending allowance balance
 
$
161
 
$
1,471
 
$
614
 
$
250
 
$
2,496
 
 
The following table presents the activity in the allowance for loan losses by portfolio segment for the year ending June 30, 2012:
 
 
 
 
 
 
 
 
 
1-4 Family
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
 
 
 
Real
 
Real
 
 
 
 
 
 
 
 
 
Commercial
 
Estate
 
Estate
 
Consumer
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
 
$
179
 
$
882
 
$
947
 
$
93
 
$
2,101
 
Provision for loan losses
 
 
(36)
 
 
336
 
 
(171)
 
 
186
 
 
315
 
Loans charged-off
 
 
 
 
 
 
(69)
 
 
(158)
 
 
(227)
 
Recoveries
 
 
 
 
65
 
 
5
 
 
76
 
 
146
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total ending allowance balance
 
$
143
 
$
1,283
 
$
712
 
$
197
 
$
2,335
 
 
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2013. Included in the recorded investment in loans is $546 of accrued interest receivable net of deferred loans fees of $303.
 
 
 
 
 
 
 
 
 
1-4 Family
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
 
 
 
Real
 
Real
 
 
 
 
 
 
 
 
 
Commercial
 
Estate
 
Estate
 
Consumer
 
Total
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
3
 
$
89
 
$
243
 
$
 
$
335
 
Collectively evaluated for impairment
 
 
158
 
 
1,382
 
 
371
 
 
250
 
 
2,161
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total ending allowance balance
 
$
161
 
$
1,471
 
$
614
 
$
250
 
$
2,496
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
51
 
$
865
 
$
1,396
 
$
 
$
2,312
 
Loans collectively evaluated for impairment
 
 
26,683
 
 
126,881
 
 
49,780
 
 
11,930
 
 
215,274
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total ending loans balance
 
$
26,734
 
$
127,746
 
$
51,176
 
$
11,930
 
$
217,586
 
 
The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2012. Included in the recorded investment in loans is $494 of accrued interest receivable net of deferred loans fees of $320.
 
 
 
 
 
 
 
 
 
1-4 Family
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
Residential
 
 
 
 
 
 
 
 
 
 
 
 
Real
 
Real
 
 
 
 
 
 
 
 
 
Commercial
 
Estate
 
Estate
 
Consumer
 
Total
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Ending allowance balance attributable to loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
 
$
50
 
$
82
 
$
258
 
$
 
$
390
 
Collectively evaluated for impairment
 
 
93
 
 
1,201
 
 
454
 
 
197
 
 
1,945
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total ending allowance balance
 
$
143
 
$
1,283
 
$
712
 
$
197
 
$
2,335
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Recorded investment in loans:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans individually evaluated for impairment
 
$
148
 
$
996
 
$
1,417
 
$
 
$
2,561
 
Loans collectively evaluated for impairment
 
 
22,940
 
 
111,352
 
 
51,683
 
 
9,388
 
 
195,363
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Total ending loans balance
 
$
23,088
 
$
112,348
 
$
53,100
 
$
9,388
 
$
197,924
 
  
The following table presents information related to loans individually evaluated for impairment by class of loans as of and for the year ended June 30, 2013:
 
 
 
Unpaid
 
 
 
 
Allowance for
 
Average
 
Interest
 
Cash Basis
 
 
 
Principal
 
Recorded
 
Loan Losses
 
Recorded
 
Income
 
Interest
 
 
 
Balance
 
Investment
 
Allocated
 
Investment
 
Recognized
 
Recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
$
65
 
$
65
 
$
 
$
63
 
$
 
$
 
1-4 Family residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
125
 
 
125
 
 
 
 
103
 
 
 
 
 
Non-owner occupied
 
 
56
 
 
56
 
 
 
 
57
 
 
5
 
 
5
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial
 
 
51
 
 
51
 
 
3
 
 
88
 
 
8
 
 
8
 
Commercial real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Other
 
 
793
 
 
800
 
 
89
 
 
808
 
 
72
 
 
72
 
1-4 Family residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Owner occupied
 
 
283
 
 
281
 
 
56
 
 
298
 
 
 
 
 
Non-owner occupied
 
 
933
 
 
934
 
 
187
 
 
927
 
 
24
 
 
24
 
Total
 
$
2,306
 
$
2,312
 
$
335
 
$
2,344
 
$
109
 
$
109
 
 
The following table presents information related to loans individually evaluated for impairment by class of loans as of and for the year ended June 30, 2012:
 
 
 
Unpaid