Document_and_Entity_Informatio
Document and Entity Information (USD $) | 9 Months Ended | |
Mar. 31, 2014 | 15-May-14 | |
Document And Entity Information | ' | ' |
Entity Registrant Name | 'JEFFERSON BANCSHARES INC | ' |
Entity Central Index Key | '0001222915 | ' |
Document Type | '10-Q | ' |
Document Period End Date | 31-Mar-14 | ' |
Amendment Flag | 'false | ' |
Current Fiscal Year End Date | '--06-30 | ' |
Entity a Well-known Seasoned Issuer | 'No | ' |
Entity a Voluntary Filer | 'No | ' |
Entity's Reporting Status Current | 'Yes | ' |
Entity Filer Category | 'Smaller Reporting Company | ' |
Entity Common Stock, Par Value Per Share | $0.01 | ' |
Entity Common Stock, Shares Outstanding | ' | 6,595,301 |
Document Fiscal Period Focus | 'Q3 | ' |
Document Fiscal Year Focus | '2014 | ' |
Consolidated_Balance_Sheets_Un
Consolidated Balance Sheets (Unaudited) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Assets | ' | ' |
Cash and cash equivalents | $12,526 | $8,837 |
Interest-earning deposits | 8,362 | 15,677 |
Investment securities classified as available for sale, net | 88,008 | 96,024 |
Federal Home Loan Bank stock | 4,635 | 4,735 |
Bank owned life insurance | 7,281 | 7,100 |
Loans receivable, net of allowance for loan losses of $3,919 and $5,660 | 342,303 | 321,299 |
Loans held-for-sale | 165 | 97 |
Premises and equipment, net | 25,025 | 25,636 |
Foreclosed real estate, net | 4,928 | 5,433 |
Accrued interest receivable: | ' | ' |
Investments | 305 | 349 |
Loans receivable | 1,016 | 1,060 |
Deferred tax asset | 10,342 | 10,911 |
Core deposit intangible | 898 | 1,151 |
Other assets | 1,012 | 4,719 |
Total Assets | 506,806 | 503,028 |
Deposits | ' | ' |
Noninterest-bearing | 55,396 | 54,765 |
Interest-bearing | 328,578 | 344,877 |
Repurchase agreements | 593 | 551 |
Federal Home Loan Bank advances | 59,899 | 37,626 |
Subordinated debentures | 7,442 | 7,358 |
Other liabilities | 500 | 4,826 |
Total liabilities | 452,408 | 450,003 |
Commitments and contingent liabilities | ' | ' |
Stockholders' equity | ' | ' |
Preferred stock, $.01 par value; 10,000,000 shares authorized; no shares issued or outstanding | ' | ' |
Common stock, $.01 par value; 30,000,000 shares authorized; 9,182,372 shares issued and 6,595,301 shares outstanding at March 31, 2014 and 6,601,091 shares outstanding at June 30, 2013 | 92 | 92 |
Additional paid-in capital | 78,218 | 78,302 |
Unearned ESOP shares | -2,160 | -2,376 |
Unearned compensation | -1,046 | -1,046 |
Accumulated other comprehensive income | -217 | -111 |
Retained earnings | 11,043 | 9,661 |
Treasury stock, at cost (2,587,070 and 2,581,280 shares) | -31,532 | -31,497 |
Total stockholders' equity | 54,398 | 53,025 |
Total liabilities and stockholders' equity | $506,806 | $503,028 |
Consolidated_Balance_Sheets_Un1
Consolidated Balance Sheets (Unaudited) (Parenthetical) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, except Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ' | ' |
Allowance for loan losses | $3,919 | $5,660 |
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Common stock, par value | $0.01 | $0.01 |
Common stock, shares authorized | 30,000,000 | 30,000,000 |
Common stock, shares issued | 9,182,372 | 9,182,372 |
Common stock, shares outstanding | 6,595,301 | 6,601,091 |
Treasury stock, shares | 2,587,070 | 2,581,280 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | $0 | $0 |
Consolidated_Statements_of_Ear
Consolidated Statements of Earnings (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Interest income: | ' | ' | ' | ' |
Interest on loans receivable | $4,094 | $4,277 | $12,364 | $13,197 |
Interest on investment securities | 475 | 437 | 1,429 | 1,266 |
Other interest | 52 | 67 | 166 | 218 |
Total interest income | 4,621 | 4,781 | 13,959 | 14,681 |
Interest expense: | ' | ' | ' | ' |
Deposits | 302 | 358 | 959 | 1,190 |
Repurchase agreements | ' | 1 | 1 | 4 |
Advances from FHLB | 226 | 313 | 720 | 950 |
Subordinated debentures | 77 | 79 | 235 | 242 |
Total interest expense | 605 | 751 | 1,915 | 2,386 |
Net interest income | 4,016 | 4,030 | 12,044 | 12,295 |
Provision for loan losses | ' | 200 | ' | 800 |
Net interest income after provision for loan losses | 4,016 | 3,830 | 12,044 | 11,495 |
Noninterest income: | ' | ' | ' | ' |
Mortgage origination fee income | 31 | 97 | 111 | 374 |
Service charges and fees | 237 | 251 | 732 | 780 |
Gain on investments | ' | ' | 1 | 12 |
Gain (loss) on sale of fixed assets | ' | ' | ' | 1 |
BOLI increase in cash value | 60 | 61 | 182 | 181 |
Other | 165 | 145 | 508 | 452 |
Total noninterest income | 493 | 554 | 1,534 | 1,800 |
Noninterest expense: | ' | ' | ' | ' |
Compensation and benefits | 1,638 | 1,712 | 5,165 | 5,159 |
Occupancy expense | 345 | 322 | 1,005 | 1,025 |
Equipment and data processing expense | 615 | 589 | 1,872 | 1,805 |
Deposit insurance premiums | 166 | 278 | 504 | 695 |
Advertising | 10 | 82 | 165 | 171 |
Legal and professional services | 189 | 123 | 399 | 368 |
Valuation adjustment and expenses on OREO | 96 | 128 | 329 | 607 |
Gain (loss) on sale of foreclosed real estate, net | 17 | -28 | 81 | 181 |
Amortization of intangible assets | 78 | 92 | 252 | 294 |
Other | 687 | 547 | 1,773 | 1,616 |
Total noninterest expense | 3,841 | 3,845 | 11,545 | 11,921 |
Earnings before income taxes | 668 | 539 | 2,033 | 1,374 |
Income taxes: | ' | ' | ' | ' |
Current | 17 | 4 | 17 | 27 |
Deferred | 211 | 149 | 634 | 318 |
Total income taxes | 228 | 153 | 651 | 345 |
Net earnings | $440 | $386 | $1,382 | $1,029 |
Net earnings per share, basic | $0.07 | $0.06 | $0.22 | $0.16 |
Net earnings per share, diluted | $0.07 | $0.06 | $0.22 | $0.16 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (Unaudited) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Statement of Comprehensive Income [Abstract] | ' | ' | ' | ' |
Net earnings | $440 | $386 | $1,382 | $1,029 |
Other comprehensive income: | ' | ' | ' | ' |
Unrealized holding gain (loss) | 670 | -272 | -171 | -71 |
Income tax benefit (expense) | -257 | 104 | 65 | 27 |
Comprehensive income (loss) | $853 | $218 | $1,276 | $985 |
Consolidated_Statements_of_Cha
Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (USD $) | Common Stock [Member] | Additional Paid-in Capital [Member] | Unallocated Common Stock in ESOP [Member] | Unearned Compensation [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] | Treasury Stock [Member] | Total |
In Thousands | ||||||||
Balance, beginning at Jun. 30, 2012 | $92 | $78,571 | ($2,809) | ($1,046) | $1,095 | $8,067 | ($31,341) | $52,629 |
Net earnings | ' | ' | ' | ' | ' | 1,028 | ' | 1,029 |
Other comprehensive income | ' | ' | ' | ' | -44 | ' | ' | -44 |
Shares committed to be released by the ESOP | ' | -226 | 325 | ' | ' | ' | ' | 99 |
Stock options expensed | ' | 4 | ' | ' | ' | ' | ' | 4 |
Purchase of common stock | ' | ' | ' | ' | ' | ' | -137 | -137 |
Balance, ending at Mar. 31, 2013 | 92 | 78,349 | -2,484 | -1,046 | 1,051 | 9,095 | -31,478 | 53,579 |
Balance, beginning at Jun. 30, 2013 | 92 | 78,302 | -2,376 | -1,046 | -111 | 9,661 | -31,497 | 53,025 |
Net earnings | ' | ' | ' | ' | ' | 1,382 | ' | 1,382 |
Other comprehensive income | ' | ' | ' | ' | -106 | ' | ' | -106 |
Shares committed to be released by the ESOP | ' | -87 | 216 | ' | ' | ' | ' | 129 |
Stock options expensed | ' | 3 | ' | ' | ' | ' | ' | 3 |
Purchase of common stock | ' | ' | ' | ' | ' | ' | -35 | -35 |
Balance, ending at Mar. 31, 2014 | $92 | $78,218 | ($2,160) | ($1,046) | ($217) | ($11,043) | ($31,532) | $54,398 |
Consolidated_Statements_of_Cha1
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) | 9 Months Ended | |
Mar. 31, 2014 | Mar. 31, 2013 | |
Statement of Stockholders' Equity [Abstract] | ' | ' |
Purchase of common stock, shares | 5,790 | 27,403 |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (Unaudited) (USD $) | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Mar. 31, 2013 |
Cash flows from operating activities: | ' | ' |
Net earnings | $1,382 | $1,029 |
Adjustments to reconcile net earnings to net cash provided by (used for) operating activities: | ' | ' |
Allocated ESOP shares | 129 | 98 |
Depreciation and amortization expense | 1,365 | 1,352 |
Amortization of premiums (discounts), net on investment securities | 466 | 474 |
Provision for loan losses | ' | 800 |
Amortization of deferred loan fees, net | -87 | -132 |
(Gain) loss on sale of investment securities | -1 | -12 |
(Gain) loss on sale of foreclosed real estate, net | 81 | 181 |
(Gain) loss on sale of fixed assets, net | ' | -1 |
Deferred tax expense (benefit) | 634 | 318 |
Stock options expensed | 4 | 4 |
Originations of mortgage loans held for sale | -4,242 | -15,004 |
Proceeds from sale of mortgage loans | 4,174 | 14,910 |
Increase in cash value of life insurance | -182 | -181 |
Decrease (increase) in: | ' | ' |
Accrued interest receivable | 88 | 140 |
Other assets | 3,707 | 182 |
Increase (decrease) in other liabilities and accrued income taxes | -4,326 | 580 |
Net cash provided by (used for) operating activities | 3,192 | 4,738 |
Cash flows used for investing activities: | ' | ' |
Loan originations, net of principal collections | -22,258 | 7,934 |
Investment securities classified as available-for-sale: | ' | ' |
Proceeds from maturities, calls and prepayments | 18,279 | 23,373 |
Proceeds from sale | ' | 80 |
Purchase of securities | -10,900 | -39,889 |
Purchase of premises and equipment | -163 | -281 |
Proceeds from sale of (additions to) foreclosed real estate, net | 1,382 | 1,440 |
Net cash provided by (used for) investing activities | -13,660 | -7,343 |
Cash flows from financing activities: | ' | ' |
Net decrease in deposits | -15,668 | -18,517 |
Net increase (decrease) in repurchase agreements | 42 | 209 |
Repayment of FHLB advances | 56,000 | -178 |
Proceeds from FHLB advances | -33,497 | ' |
Purchase of treasury stock | -35 | -137 |
Net cash provided by (used for) financing activities | 6,842 | -18,623 |
Net increase (decrease) in cash, cash equivalents and interest-earning deposits | -3,626 | -21,228 |
Cash, cash equivalents and interest-earning deposits at beginning of period | 24,514 | 56,693 |
Cash, cash equivalents and interest-earning deposits at end of period | 20,888 | 35,465 |
Cash paid during period for: | ' | ' |
Interest on deposits | 961 | 1,201 |
Interest on borrowed funds | 477 | 782 |
Interest on subordinated debentures | 151 | 158 |
Income taxes | ' | 45 |
Real estate acquired in settlement of loans | $1,275 | $3,689 |
Basis_of_Presentation
Basis of Presentation | 9 Months Ended | |
Mar. 31, 2014 | ||
Basis Of Presentation | ' | |
Basis of Presentation | ' | |
-1 | Basis of Presentation | |
The condensed consolidated financial statements include the accounts of Jefferson Bancshares, Inc. (the “Company” or “Jefferson Bancshares”) and its wholly-owned subsidiary, Jefferson Federal Bank (the “Bank” or “Jefferson Federal”). The accompanying interim condensed consolidated financial statements, presented in accordance with accounting principles generally accepted in the United States of America (“GAAP”), are unaudited and reflect all adjustments which, in the opinion of management, are necessary for a fair statement of financial condition and results of operations for the interim periods. The results of operations for the three and nine months ended March 31, 2014 are not necessarily indicative of the results which may be expected for the entire fiscal year or any other period. These unaudited consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K for the year ended June 30, 2013, which was filed with the Securities and Exchange Commission on September 30, 2013. All dollar amounts, other than per-share amounts, are in thousands unless otherwise noted. |
Principles_of_Consolidation
Principles of Consolidation | 9 Months Ended | |
Mar. 31, 2014 | ||
Principles Of Consolidation | ' | |
Principles of Consolidation | ' | |
-2 | Principles of Consolidation | |
The consolidated financial statements include the accounts of Jefferson Bancshares, Inc. and its wholly-owned subsidiary, the Bank. All significant intercompany balances and transactions have been eliminated in consolidation. |
Use_of_Estimates
Use of Estimates | 9 Months Ended | |
Mar. 31, 2014 | ||
Use Of Estimates | ' | |
Use of Estimates | ' | |
-3 | Use of Estimates | |
In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the statement of condition dates and revenues and expenses for the periods shown. Actual results could differ from the estimates and assumptions used in the consolidated financial statements. Material estimates that are particularly susceptible to significant change in the near term relate to the determination of the allowance for loan losses, the valuation of foreclosed real estate and deferred tax assets. |
Limitation_on_Capital_Distribu
Limitation on Capital Distributions | 9 Months Ended | ||
Mar. 31, 2014 | |||
Limitation On Capital Distributions | ' | ||
Limitation on Capital Distributions | ' | ||
-4 | Limitation on Capital Distributions | ||
Jefferson Federal may not pay dividends on its capital stock if its regulatory capital would thereby be reduced below the amount then required for the liquidation account established for the benefit of certain depositors of Jefferson Federal at the time of its conversion to stock form. | |||
Under applicable regulations, Jefferson Federal is prohibited from making any capital distributions if, after making the distribution, the Bank would have: (i) a total risk-based capital ratio of less than 8.0%; (ii) a Tier 1 risk-based capital ratio of less than 4.0%; or (iii) a leverage ratio of less than 4.0%. | |||
Under the banking laws of the State of Tennessee, a Tennessee chartered savings bank may not declare dividends in any calendar year in which the dividend would exceed the total of its net income for that year, combined with its retained net income for the preceding two years, without the prior approval of the Commissioner of the Tennessee Department of Financial Institutions. |
Earnings_Per_Common_Share
Earnings Per Common Share | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Earnings Per Common Share | ' | ||||||||||||||||
Earnings Per Common Share | ' | ||||||||||||||||
-5 | Earnings Per Common Share | ||||||||||||||||
Earnings per common share and diluted earnings per common share have been computed on the basis of dividing net earnings by the weighted-average number of shares of common stock outstanding, exclusive of unallocated employee stock ownership plan (“ESOP”) shares. Diluted earnings per common share reflect additional common shares that would have been outstanding if dilutive potential common shares had been issued. Potential common shares that may be issued by the Company relate to outstanding stock options and are determined using the treasury stock method. For the three and nine months ended March 31, 2014, stock options to purchase 360,638 shares were not included in the computation of diluted net income per share as their effect would have been anti-dilutive. The following table illustrates the number of weighted-average shares of common stock used in each corresponding earnings per common share calculation: | |||||||||||||||||
Weighted-Average Shares | Weighted-Average Shares | ||||||||||||||||
Outstanding for the | Outstanding for the | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average number of common shares used in computing basic earnings per common share | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 | |||||||||||||
Effect of dilutive stock options | — | — | — | — | |||||||||||||
Weighted average number of common shares and dilutive potential common shares used in computing earnings per common share assuming dilution | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 |
Accounting_for_Allowance_for_L
Accounting for Allowance for Loan Losses and Impairment of a Loan | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Accounting For Allowance For Loan Losses And Impairment Of Loan | ' | ||||||||||||||||||||||||||||||||||||
Accounting for Allowance for Loan Losses and Impairment of a Loan | ' | ||||||||||||||||||||||||||||||||||||
-6 | Accounting for Allowance for Loan Losses and Impairment of a Loan | ||||||||||||||||||||||||||||||||||||
The allowance for loan and lease losses is an estimate of the losses that are inherent in the loan and lease portfolio. The allowance 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 uncollectibility of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. The Bank’s charge-off policy is consistent with bank regulatory standards. Generally, loans are charged off when the loan becomes over 120 days delinquent. Real estate acquired as a result of foreclosure is initially recorded at the lower of the amount of the loan or the fair value, less estimated selling costs. Any writedown to fair value is charged to the allowance for loan and lease losses. Any subsequent writedown of foreclosed real estate is charged against earnings. | |||||||||||||||||||||||||||||||||||||
The allowance consists of specific and general components. The specific component relates to loans that are classified as doubtful, substandard or special mention. The general component covers non-classified loans and is based on historical loss experience adjusted for qualitative factors. | |||||||||||||||||||||||||||||||||||||
In connection with assessing the allowance, we have established a systematic methodology for determining the adequacy of the allowance for loan losses. Loans are grouped into pools based on loan type and include residential mortgage loans, multi-family loans, construction and land development loans, non-residential real estate loans (owner occupied and non-owner occupied), commercial loans, HELOC and junior lien, and consumer loans. Commercial business loans and loans secured by commercial real estate are generally larger and involve a greater degree of risk than residential mortgage loans. In addition, loans secured by commercial real estate are more likely to be negatively impacted by adverse conditions in the real estate market or the economy. | |||||||||||||||||||||||||||||||||||||
Specific valuation allowances are established for impaired loans. The Company considers a loan to be impaired when, based on current information and events, it is probable that the Company will be unable to collect all amounts due according to the contractual terms of the loan agreement on a timely basis. A specific reserve represents the difference between the recorded value of the loan and either its estimated fair value less estimated disposition costs, or the net present value as determined by a discounted cash flow analysis. On a quarterly basis, management evaluates individual loans and lending relationships which have outstanding principal balances of $250,000 or more and which are classified as either substandard, doubtful or loss according to the loan grading policy for impairment. Troubled debt restructurings (“TDRs”) are also considered to be impaired, except for those that have been performing under the new terms for at least six consecutive months. | |||||||||||||||||||||||||||||||||||||
A TDR occurs when the Bank grants a concession to a borrower with financial difficulties that it would not otherwise consider. The Bank has adopted the guidance and definitions found in ASU 2011-02 in determining if a borrower is experiencing financial difficulties and if a concession has been granted. The majority of the Bank’s TDRs involve a modification involving changes in amortization terms, reductions in interest rates, interest only payments and, in limited cases, concessions to outstanding loan balances. A TDR may be non-accruing or it may accrue interest. A nonaccrual TDR will be returned to accruing status at such time when the borrower successfully performs under the new terms for at least six consecutive months. The Bank’s TDRs totaled $3.9 million at March 31, 2014 compared to $9.1 million at June 30, 2013. | |||||||||||||||||||||||||||||||||||||
The following table presents the Bank’s loans classified as TDRs by loan type and accrual status as of March 31, 2014: | |||||||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||||||
Accrual | Non-accrual | Total | |||||||||||||||||||||||||||||||||||
Status | Status | TDRs | |||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 952 | $ | — | $ | 952 | |||||||||||||||||||||||||||||||
Multi-family | 612 | — | 612 | ||||||||||||||||||||||||||||||||||
Construction and land development | 262 | — | 262 | ||||||||||||||||||||||||||||||||||
Non-residential real estate | 182 | 1,134 | 1,316 | ||||||||||||||||||||||||||||||||||
Owner occupied | 254 | 299 | 553 | ||||||||||||||||||||||||||||||||||
Commercial | — | 157 | 157 | ||||||||||||||||||||||||||||||||||
HELOC and junior Lien | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 2,262 | $ | 1,590 | $ | 3,852 | |||||||||||||||||||||||||||||||
The accrual of interest on all loans is discontinued at the time the loan is 90 days delinquent. All interest accrued but not collected for loans considered impaired, placed on non-accrual or charged off is reversed against interest income. The interest on these loans is accounted for on the cash basis or cost-recovery method until the loan is returned to accrual status. Loans are returned to accrual status when future payments are reasonably assured. | |||||||||||||||||||||||||||||||||||||
The evaluation of the allowance for loan and lease losses is inherently subjective, as it requires estimates that are susceptible to significant revision as more information becomes available. The Company and the Bank are subject to periodic examination by regulatory agencies, which may require the Bank to record increases in the allowances based on the regulator’s evaluation of available information. There can be no assurance that the Company’s or the Bank’s regulators will not require further increases to the allowances. | |||||||||||||||||||||||||||||||||||||
The following table summarizes the activity in the allowance for loan losses for the nine months ended March 31, 2014: | |||||||||||||||||||||||||||||||||||||
Resid. Mtg | Multi- family | Constr and land dev. | Non- residential real estate | Owner occupied | Comm’l | HELOC and junior lien | Consumer | Total | |||||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 665 | $ | 475 | $ | 491 | $ | 981 | $ | 347 | $ | 2,481 | $ | 168 | $ | 52 | $ | 5,660 | |||||||||||||||||||
Charge Offs | (75 | ) | (398 | ) | (248 | ) | (619 | ) | — | (539 | ) | (4 | ) | (62 | ) | (1,945 | ) | ||||||||||||||||||||
Recoveries | — | — | 49 | — | 66 | 77 | — | 12 | 204 | ||||||||||||||||||||||||||||
Provision | 298 | (26 | ) | 576 | 510 | (4 | ) | (1,379 | ) | (16 | ) | 41 | — | ||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 888 | $ | 51 | $ | 868 | $ | 872 | $ | 409 | $ | 640 | $ | 148 | $ | 43 | $ | 3,919 | |||||||||||||||||||
Ending balance, Individually Evaluated | $ | — | $ | — | $ | — | $ | 54 | $ | — | $ | 97 | $ | — | $ | — | $ | 151 | |||||||||||||||||||
Ending balance, Collectively Evaluated | $ | 888 | $ | 51 | $ | 868 | $ | 818 | $ | 409 | $ | 543 | $ | 148 | $ | 43 | $ | 3,768 | |||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 78,449 | $ | 9,351 | $ | 37,836 | $ | 63,232 | $ | 74,570 | $ | 63,269 | $ | 17,392 | $ | 2,588 | $ | 346,687 | |||||||||||||||||||
Ending balance, Individually Evaluated | $ | — | $ | — | $ | 122 | $ | 1,134 | $ | — | $ | 540 | $ | — | $ | — | $ | 1,796 | |||||||||||||||||||
Ending balance, Collectively Evaluated | $ | 78,449 | $ | 9,351 | $ | 37,714 | $ | 62,098 | $ | 74,570 | $ | 62,729 | $ | 17,392 | $ | 2,588 | $ | 344,891 | |||||||||||||||||||
The following table is an aging analysis of the loan portfolio at March 31, 2014: | |||||||||||||||||||||||||||||||||||||
30-59 days past due | 60-89 days past due | 90 or more days past due and still accruing | Nonaccrual | Total past due and nonaccrual | Total Current | Total loans receivable | |||||||||||||||||||||||||||||||
Residential Mortgage | $ | 1,565 | $ | 17 | $ | — | $ | 1,917 | $ | 3,499 | $ | 74,950 | $ | 78,449 | |||||||||||||||||||||||
Multi-family | — | — | — | — | — | 9,351 | 9,351 | ||||||||||||||||||||||||||||||
Construction/land development | 9 | — | — | 600 | 609 | 37,227 | 37,836 | ||||||||||||||||||||||||||||||
Non-residential real estate | 347 | — | — | 1,598 | 1,945 | 61,287 | 63,232 | ||||||||||||||||||||||||||||||
Owner occupied | — | — | — | 1,061 | 1,061 | 73,509 | 74,570 | ||||||||||||||||||||||||||||||
Commercial | 80 | — | — | 1,626 | 1,706 | 61,563 | 63,269 | ||||||||||||||||||||||||||||||
HELOC and Junior Lien | — | — | — | 25 | 25 | 17,367 | 17,392 | ||||||||||||||||||||||||||||||
Consumer | 6 | — | — | — | 6 | 2,582 | 2,588 | ||||||||||||||||||||||||||||||
Total | $ | 2,007 | $ | 17 | $ | — | $ | 6,827 | $ | 8,851 | $ | 337,836 | $ | 346,687 | |||||||||||||||||||||||
The following table summarizes the credit risk profile by internally assigned grade at March 31, 2014: | |||||||||||||||||||||||||||||||||||||
Residential Mortgage | Multi-family | Constr and land dev. | Non-residential real estate | Owner occupied | Comm’l | HELOC and Junior Lien | Consumer | Total | |||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||
Pass | $ | 73,104 | $ | 8,648 | $ | 35,607 | $ | 52,991 | $ | 71,905 | $ | 60,942 | $ | 17,112 | $ | 2,586 | $ | 322,895 | |||||||||||||||||||
Watch | 2,996 | 612 | 700 | 7,096 | 1,604 | 605 | 255 | 2 | 13,870 | ||||||||||||||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Substandard | 2,349 | 91 | 1,529 | 3,145 | 1,061 | 1,722 | 25 | — | 9,922 | ||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total: | $ | 78,449 | $ | 9,351 | $ | 37,836 | $ | 63,232 | $ | 74,570 | $ | 63,269 | $ | 17,392 | $ | 2,588 | $ | 346,687 | |||||||||||||||||||
The following table summarizes the composition of impaired loans, the associated specific reserves, and interest income recognized on impaired loans at March 31, 2014: | |||||||||||||||||||||||||||||||||||||
Recorded investment | Unpaid principal balance | Specific allowance | Interest income recognized | ||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||||||||||||||||||
Construction and land development | 122 | 122 | — | 7 | |||||||||||||||||||||||||||||||||
Non-residential real estate | 1,080 | 1,134 | 54 | — | |||||||||||||||||||||||||||||||||
Owner occupied | — | — | — | — | |||||||||||||||||||||||||||||||||
Commercial | 443 | 540 | 97 | 5 | |||||||||||||||||||||||||||||||||
HELOC and junior lien | — | — | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 1,645 | $ | 1,796 | $ | 151 | $ | 12 | |||||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 1,399 | $ | 1,399 | $ | — | $ | 47 | |||||||||||||||||||||||||||||
Multi-family | 612 | 612 | — | 39 | |||||||||||||||||||||||||||||||||
Construction and land development | 1,050 | 1,050 | — | 8 | |||||||||||||||||||||||||||||||||
Non-residential real estate | 1,286 | 1,286 | — | 33 | |||||||||||||||||||||||||||||||||
Owner occupied | 810 | 810 | — | 1 | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | |||||||||||||||||||||||||||||||||
HELOC and junior lien | — | — | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 5,157 | $ | 5,157 | $ | — | $ | 128 | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 1,399 | $ | 1,399 | $ | — | $ | 47 | |||||||||||||||||||||||||||||
Multi-family | 612 | 612 | — | 39 | |||||||||||||||||||||||||||||||||
Construction and land development | 1,172 | 1,172 | — | 15 | |||||||||||||||||||||||||||||||||
Non-residential real estate | 2,366 | 2,420 | 54 | 33 | |||||||||||||||||||||||||||||||||
Owner occupied | 810 | 810 | — | 1 | |||||||||||||||||||||||||||||||||
Commercial | 443 | 540 | 97 | 5 | |||||||||||||||||||||||||||||||||
HELOC and junior lien | — | — | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 6,802 | $ | 6,953 | $ | 151 | $ | 140 | |||||||||||||||||||||||||||||
Average impaired loans for the nine months ended March 31, 2014 | $ | 9,320 | |||||||||||||||||||||||||||||||||||
Financial_Instruments_with_Off
Financial Instruments with Off-Balance Sheet Risk | 9 Months Ended | |
Mar. 31, 2014 | ||
Financial Instruments With Off-Balance Sheet Risk | ' | |
Financial Instruments with Off-Balance Sheet Risk | ' | |
-7 | Financial Instruments With Off-Balance Sheet Risk | |
Jefferson Bancshares is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments generally include commitments to originate mortgage loans. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheet. The Company’s maximum exposure to credit loss in the event of nonperformance by the borrower is represented by the contractual amount and related accrued interest receivable of those instruments. The Company minimizes this risk by evaluating each borrower’s creditworthiness on a case-by-case basis. Collateral held by the Company consists of a first or second mortgage on the borrower’s property. The amount of collateral obtained is based upon an appraisal of the property. | ||
At March 31, 2014, we had approximately $16.6 million in commitments to extend credit, consisting entirely of commitments to fund real estate loans. In addition to commitments to originate loans, at March 31, 2014, we had $547,000 in unused letters of credit and approximately $30.1 million in unused lines of credit. | ||
Dividends
Dividends | 9 Months Ended | |
Mar. 31, 2014 | ||
Dividends [Abstract] | ' | |
Dividends | ' | |
-8 | Dividends | |
On February 2, 2010, the Company announced that the Board of Directors had voted to suspend the payment of the quarterly cash dividend on the Company’s common stock in an effort to conserve capital. |
Stock_Incentive_Plans
Stock Incentive Plans | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Stock Incentive Plans | ' | ||||||||
Stock Incentive Plans | ' | ||||||||
-9 | Stock Incentive Plans | ||||||||
The Company maintains stock-based benefit plans under which certain employees and directors are eligible to receive stock grants or options. Under the 2004 Stock-Based Benefit Plan, a maximum of 279,500 shares may be granted as restricted stock and a maximum of 698,750 shares may be issued through the exercise of nonstatutory or incentive stock options. The exercise price of each option equals the market price of the Company’s stock on the date of grant and an option’s maximum term is ten years. | |||||||||
The table below summarizes the status of the Company’s stock option plans as of March 31, 2014: | |||||||||
Nine Months Ended | |||||||||
31-Mar-14 | |||||||||
Weighted- | |||||||||
average | |||||||||
Shares | exercise price | ||||||||
Outstanding at beginning of period | 360,638 | $ | 13.04 | ||||||
Granted during the nine-month period | — | — | |||||||
Options forfeited | (340,638 | ) | 13.69 | ||||||
Options exercised | — | — | |||||||
Outstanding at March 31, 2014 | 20,000 | $ | 1.97 | ||||||
Options exercisable at March 31, 2014 | 4,000 | $ | 1.97 | ||||||
The following information applies to options outstanding at March 31, 2014: | |||||||||
Number outstanding | 20,000 | ||||||||
Range of exercise prices | $ | 1.97 | |||||||
Weighted-average exercise price | $ | 1.97 | |||||||
Weighted-average remaining contractual life | 8.33 | ||||||||
Number of options remaining for future issuance | 678,750 | ||||||||
The fair value of stock options granted is amortized as compensation expense on a straight-line basis over the five year vesting period of the grant. Compensation expense related to stock options was approximately $4,000 for the nine months ended March 31, 2014. |
Investment_Securities
Investment Securities | 9 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
Investment Securities | ' | ||||||||||||||||||||||||
-10 | Investment Securities | ||||||||||||||||||||||||
Investment securities are summarized as follows: | |||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
Federal agency | $ | 17,420 | $ | 46 | $ | (504 | ) | $ | 16,962 | ||||||||||||||||
Mortgage-backed | 62,392 | 887 | (711 | ) | 62,568 | ||||||||||||||||||||
Municipals | 7,940 | 192 | (147 | ) | 7,985 | ||||||||||||||||||||
Other Securities | 607 | — | (114 | ) | 493 | ||||||||||||||||||||
Total securities available-for-sale | $ | 88,359 | $ | 1,125 | $ | (1,476 | ) | $ | 88,008 | ||||||||||||||||
Weighted-average rate | 2.13 | % | |||||||||||||||||||||||
Pledged at March 31, 2014 | $ | 39,673 | |||||||||||||||||||||||
At June 30, 2013 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
Federal agency | $ | 21,985 | $ | 88 | $ | (420 | ) | $ | 21,653 | ||||||||||||||||
Mortgage-backed | 65,607 | 1,096 | (835 | ) | 65,868 | ||||||||||||||||||||
Municipals | 8,004 | 172 | (171 | ) | 8,005 | ||||||||||||||||||||
Other Securities | 607 | — | (109 | ) | 498 | ||||||||||||||||||||
Total securities available-for-sale | $ | 96,203 | $ | 1,356 | $ | (1,535 | ) | $ | 96,024 | ||||||||||||||||
Weighted-average rate | 1.83 | % | |||||||||||||||||||||||
Pledged at June 30, 2013 | $ | 11,017 | |||||||||||||||||||||||
Securities with unrealized losses not recognized in income are as follows: | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Federal agency securities | $ | 9,527 | $ | (440 | ) | $ | 936 | $ | (64 | ) | $ | 10,463 | $ | (504 | ) | ||||||||||
Mortgage-backed securities | 20,387 | (429 | ) | 7,042 | (282 | ) | 27,429 | (711 | ) | ||||||||||||||||
Municipal securities | 2,373 | (114 | ) | 902 | (33 | ) | 3,275 | (147 | ) | ||||||||||||||||
Other securities | — | — | 493 | (114 | ) | 493 | (114 | ) | |||||||||||||||||
$ | 32,287 | $ | (983 | ) | $ | 9,373 | $ | (493 | ) | $ | 41,660 | $ | (1,476 | ) | |||||||||||
The Company evaluates its securities with significant declines in fair value on a quarterly basis to determine whether they should be considered temporarily or other than temporarily impaired. The Company has recognized all of the unrealized losses reflected in the foregoing table in other comprehensive income. The Company neither has the intent to sell nor is forecasting the need or requirement to sell the securities before their anticipated recovery. | |||||||||||||||||||||||||
Federal Agency Securities – The unrealized losses of $504,000 for these eleven federal agency securities were caused by changes in market interest rates. The contractual cash flows of these investments are guaranteed by an agency of the U.S. Government. Because the decline in market value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments before recovery of their amortized cost bases and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||
GSE Residential Mortgage-Backed Securities – The unrealized losses of $711,000 for these thirty-eight GSE mortgage-backed securities were caused by changes in market interest rates. The contractual cash flows of these investments are guaranteed by an agency of the U.S. Government. Accordingly it is expected that the securities would not be settled at a price less than the amortized bases of the Company’s investments. Because the decline in market value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments before recovery of their amortized cost bases and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||
Municipal Securities – The unrealized losses of $147,000 for these seven investments in municipal securities were caused by changes in market interest rates. The contractual cash flows of these investments are guaranteed by municipal agencies themselves. Accordingly it is expected that the securities would not be settled at a price less than the amortized bases of the Company’s investments. Because the decline in market value is attributable to changes in market interest rates and not credit quality, and because the Company does not intend to sell the investments before recovery of their amortized cost bases and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost bases, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||
Other Securities – The unrealized loss of $114,000 on this collateralized debt obligation (“CDO”) was a result of updated variables and inputs that comprise the model used in the semi-annual independent valuation of this security. The collateral for the CDO investment is comprised of trust preferred securities and senior and subordinated debt issued by banks, insurance companies, REITs, real estate operating companies and homebuilding companies. The CDO is valued by evaluating all relevant credit and structural aspects of the instrument, determining appropriate performance assumptions and performing a discounted cash flow analysis. Given the expected improvement in the future performance of the collateral, the unrealized loss is not deemed to be attributable to credit quality. Since the Company does not intend to sell this investment before recovery of its amortized cost basis, which may be maturity, the Company does not consider this investment to be other-than-temporarily impaired at March 31, 2014. | |||||||||||||||||||||||||
Maturities of debt securities at March 31, 2014 are summarized as follows: | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Amortized | Fair | Average | |||||||||||||||||||||||
Cost | Value | Yield | |||||||||||||||||||||||
Within 1 year | $ | 2,790 | $ | 2,798 | 1.36 | % | |||||||||||||||||||
Over 1 year through 5 years | 6,842 | 6,769 | 1.53 | % | |||||||||||||||||||||
After 5 years through 10 years | 20,500 | 20,368 | 1.88 | % | |||||||||||||||||||||
Over 10 years | 58,227 | 58,073 | 2.2 | % | |||||||||||||||||||||
$ | 88,359 | $ | 88,008 | 2.05 | % |
Fair_Value_Disclosures
Fair Value Disclosures | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures [Abstract] | ' | ||||||||||||||||||||
Fair Value Disclosures | ' | ||||||||||||||||||||
-11 | Fair Value Disclosures | ||||||||||||||||||||
Fair value is defined as the price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. The Company utilizes fair value measurements to record fair value adjustments to certain assets and liabilities and to determine fair value disclosures. When measuring fair value, the Company uses valuation techniques that are appropriate and consistently applied. A hierarchy is also established under the standard and is used to prioritize valuation inputs into the following three levels used to measure fair value: | |||||||||||||||||||||
Level 1 | |||||||||||||||||||||
Quoted prices in active markets for identical assets or liabilities. Level 1 assets and liabilities include debt and equity securities and derivative contracts that are traded in an active exchange market, as well as certain U.S. Treasury, other U.S. Government and agency mortgage-backed debt securities that are highly liquid and are actively traded in over-the-counter markets. | |||||||||||||||||||||
Level 2 | |||||||||||||||||||||
Observable inputs other than Level 1 prices, such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 2 assets and liabilities include debt securities with quoted prices that are traded less frequently than exchange-traded instruments and derivative contracts whose value is determined using a pricing model with inputs that are observable in the market or can be derived principally from or corroborated by observable market data. This category generally includes certain U.S. Government and agency mortgage-backed debt securities, corporate debt securities, derivative contracts and residential mortgage loans held-for-sale. | |||||||||||||||||||||
Level 3 | |||||||||||||||||||||
Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities. Level 3 assets and liabilities include financial instruments whose value is determined using pricing models, discounted cash flow methodologies, or similar techniques, as well as instruments for which the determination of fair value requires significant management judgment or estimation. This category generally includes certain private equity investments, retained residual interests in securitizations, residential mortgage servicing rights, and highly structured or long-term derivative contracts. | |||||||||||||||||||||
The following is a description of valuation methodologies used for assets recorded at fair value. | |||||||||||||||||||||
Investment Securities Available for Sale | |||||||||||||||||||||
Level 2 investment securities classified as “available-for-sale” are recorded at fair value on a recurring basis. Fair value measurements are based upon independent pricing models or other model-based valuation techniques with inputs that are observable in the market or that can be derived principally from or corroborated by observable market data. Level 2 securities include mortgage-backed securities issued by government-sponsored entities, municipal bonds, bonds issued by government agencies, and corporate debt securities. Level 3 investment securities classified as “available-for-sale” are recorded at fair value on at least a semi-annual basis. Fair value measurements are based upon independent pricing models based upon unobservable inputs which require significant management judgment or estimation. Level 3 securities include certain mortgage-backed securities and other debt securities. | |||||||||||||||||||||
Impaired Loans | |||||||||||||||||||||
The Company records loans at fair value on a non-recurring basis. However, from time to time, a loan is considered impaired and an allowance for loan losses is established. Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment using one of several methods, including collateral value, market value of similar debt, enterprise value, liquidation value and discounted cash flows. | |||||||||||||||||||||
Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. At March 31, 2014, substantially all of the total impaired loans were evaluated based on either the fair value of the collateral or its liquidation value. In accordance with GAAP, impaired loans where an allowance is established based on the fair value of collateral require classification in the fair value hierarchy. When the fair value of the collateral is based on an observable market price, the Company records the impaired loan as nonrecurring Level 2. | |||||||||||||||||||||
The fair value of collateral dependent impaired loans and other real estate owned is generally based on recent real estate appraisals and other available observable market information. These appraisals may utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. The Company generally uses independent external appraisers in this process who routinely make adjustments to adjust for differences between the comparable sales and income data available. Such adjustments are typically significant and result in a Level 3 classification of the inputs for determining fair value. | |||||||||||||||||||||
Assets and Liabilities Recorded at Fair Value on a Recurring Basis | |||||||||||||||||||||
Below is a table that presents information about certain assets and liabilities measured at fair value: | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Total Carrying | |||||||||||||||||||||
Amount in | Assets/Liabilities | ||||||||||||||||||||
Statement of | Measured at | ||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Financial Condition | Fair Value | ||||||||||||||||
Securities available for sale | — | $ | 87,136 | $ | 872 | $ | 88,008 | $ | 88,008 | ||||||||||||
Assets and Liabilities Recorded at Fair Value on a Nonrecurring Basis | |||||||||||||||||||||
The Company may be required, from time to time, to measure certain assets at fair value on a nonrecurring basis in accordance with GAAP. These include assets that are measured at the lower of cost or market that were recognized at fair value below cost at the end of the period. Assets measured at fair value on a nonrecurring basis are included in the table below. | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Total Gains | |||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
Impaired Loans | — | — | $ | 6,802 | — | ||||||||||||||||
Other real estate owned | — | — | 4,928 | — | |||||||||||||||||
The carrying value and estimated fair value of the Company’s financial instruments are as follows: | |||||||||||||||||||||
At | At | ||||||||||||||||||||
31-Mar-14 | 30-Jun-13 | ||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks and interest-earning deposits with banks | $ | 20,888 | $ | 20,888 | $ | 24,514 | $ | 24,514 | |||||||||||||
Available-for-sale securities | 88,008 | 88,008 | 96,024 | 96,024 | |||||||||||||||||
Federal Home Loan Bank stock | 4,635 | 4,635 | 4,735 | 4,735 | |||||||||||||||||
Bank owned life insurance | 7,281 | 7,281 | 7,100 | 7,100 | |||||||||||||||||
Loans receivable, net | 342,303 | 344,897 | 321,299 | 329,268 | |||||||||||||||||
Accrued interest receivable | 1,321 | 1,321 | 1,409 | 1,409 | |||||||||||||||||
Loans held-for-sale | 165 | 165 | 97 | 97 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | (383,974 | ) | (375,586 | ) | (399,642 | ) | (391,442 | ) | |||||||||||||
Borrowed funds | (60,492 | ) | (61,124 | ) | (38,177 | ) | (39,505 | ) | |||||||||||||
Subordinated debentures | (7,442 | ) | (5,650 | ) | (7,358 | ) | (4,950 | ) | |||||||||||||
Off-balance sheet assets (liabilities): | |||||||||||||||||||||
Commitments to extend credit | — | 16,577 | — | 15,330 | |||||||||||||||||
Unused letters of credit | — | 547 | — | 320 | |||||||||||||||||
Unused lines of credit | — | 30,142 | — | 27,663 | |||||||||||||||||
The following methods and assumptions were used by the Company in estimating its fair value disclosures for financial instruments: | |||||||||||||||||||||
Cash and due from banks and interest-earning deposits with banks - The carrying amounts for these assets approximate fair value. | |||||||||||||||||||||
Investment securities – See the discussion beginning on Page 17 concerning assets measured at fair value on a recurring basis. | |||||||||||||||||||||
Federal Home Loan Bank stock - The fair value for FHLB stock is the carrying value due to restrictions placed on transferability. | |||||||||||||||||||||
Loans held-for-sale – The fair value of loans held-for-sale is the carrying value since these loans have a commitment to be purchased by a third party. | |||||||||||||||||||||
Loans receivable, net - The fair value is based on discounted cash flow analyses, using interest rates currently being offered for loans with similar terms and for similar maturities. The estimated fair value of loans is adjusted for the allowance for loan losses. | |||||||||||||||||||||
Accrued interest receivable - The carrying amounts of accrued interest receivable approximate fair value. | |||||||||||||||||||||
. | |||||||||||||||||||||
Bank-owned life insurance - The carrying value of this asset is the cash surrender value, which approximates fair value. | |||||||||||||||||||||
Deposits - The fair value of deposits with no stated maturity is equal to the amount payable on demand. The fair value of time deposits is estimated using discounted cash flow analyses. The discount rate is estimated using rates currently offered for deposits of similar remaining maturities. | |||||||||||||||||||||
Borrowed Money - The estimated fair value of debt is based on current rates for similar financing. | |||||||||||||||||||||
Subordinated debt - The fair value for subordinated debt is estimated based on a third party indication of fair value at the respective dates. |
Subordinated_Debt
Subordinated Debt | 9 Months Ended | |
Mar. 31, 2014 | ||
Subordinated Debt | ' | |
Subordinated Debt | ' | |
-12 | Subordinated Debt | |
In connection with its October 2008 acquisition of State of Franklin Bancshares, Inc. (“State of Franklin”), the Company acquired State of Franklin Statutory Trust II (the “Trust”) and assumed the Trust’s obligation with respect to certain capital securities described below. On December 13, 2006, State of Franklin issued $10.3 million of junior subordinated debentures to the Trust, a Delaware business trust wholly owned by State of Franklin. The Trust (a) sold $10.0 million of capital securities through its underwriters to institutional investors and upstreamed the proceeds to State of Franklin and (b) issued $310,000 of common securities to State of Franklin. The sole assets of the Trust are the $10.3 million of junior subordinated debentures issued by State of Franklin. The securities are redeemable at par after January 30, 2013, and have a final maturity of January 30, 2037. The interest is payable quarterly at a floating rate equal to 3-month LIBOR plus 1.7%. | ||
On September 25, 2013, the Company notified the Trustee of the Trust that, beginning with the October 30, 2013 interest payment period, the Company would end its prior election to defer all payments of interest on the junior subordinated debentures and pay all deferred interest and additional interest due on the junior subordinated debentures as of October 30, 2013. |
Subsequent_Events
Subsequent Events | 9 Months Ended | |
Mar. 31, 2014 | ||
Subsequent Events [Abstract] | ' | |
Subsequent Events | ' | |
-13 | Subsequent Events | |
The Company has evaluated subsequent events for potential recognition and disclosure for the three months ended March 31, 2014. No items were identified during this evaluation that required adjustment to or disclosure in the accompanying financial statements. |
Agreement_and_Plan_of_Merger
Agreement and Plan of Merger | 9 Months Ended | |
Mar. 31, 2014 | ||
Business Combinations [Abstract] | ' | |
Agreement and Plan of Merger | ' | |
-14 | Agreement and Plan of Merger | |
On January 22, 2014, the Company and HomeTrust Bancshares, Inc., a Maryland corporation (“HomeTrust”), entered into an Agreement and Plan of Merger (the “Merger Agreement”) pursuant to which, upon the terms and subject to the conditions set forth therein, the Company will merge with and into HomeTrust (the “Merger”), with HomeTrust as the surviving corporation in the Merger. Immediately after the effective time of the Merger (the “Effective Time”), HomeTrust intends to merge the Bank with and into HomeTrust Bank, a wholly owned subsidiary of HomeTrust (the “Bank Merger”), with HomeTrust Bank as the surviving institution in the Bank Merger. | ||
Subject to the terms and conditions of the Merger Agreement, at the Effective Time, each share of the common stock of the Company outstanding immediately prior to the Effective Time will be converted into the right to receive $4.00 in cash plus a fraction of a share of the common stock of HomeTrust equal to the quotient of $4.00 divided by the average of the volume weighted price of HomeTrust common stock on the NASDAQ Stock Market for the ten trading days ending on the fifth trading day immediately preceding the Merger closing date, with the exchange ratio fixed at .2667 if the average HomeTrust price is equal to or less than $15.00 and at .2222 if the average HomeTrust price is equal to or greater than $18.00. All in-the-money Company stock options outstanding immediately prior to the Effective Time will be canceled in exchange for a cash payment as provided in the Merger Agreement. | ||
The completion of the Merger is subject to customary conditions, including approval of the Merger Agreement by the Company’s shareholders and the receipt of required regulatory approvals. The Merger is expected to be completed in the second calendar quarter of 2014. The Merger Agreement provides certain termination rights for both HomeTrust and the Company and further provides that a termination fee of $1,950,000 will be payable by the Company upon termination of the Merger Agreement under certain circumstances. |
Earnings_Per_Common_Share_Tabl
Earnings Per Common Share (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||
Earnings Per Common Share Tables | ' | ||||||||||||||||
Schedule of weighted average shares | ' | ||||||||||||||||
The following table illustrates the number of weighted-average shares of common stock used in each corresponding earnings per common share calculation: | |||||||||||||||||
Weighted-Average Shares | Weighted-Average Shares | ||||||||||||||||
Outstanding for the | Outstanding for the | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 31, | March 31, | ||||||||||||||||
2014 | 2013 | 2014 | 2013 | ||||||||||||||
Weighted average number of common shares used in computing basic earnings per common share | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 | |||||||||||||
Effect of dilutive stock options | — | — | — | — | |||||||||||||
Weighted average number of common shares and dilutive potential common shares used in computing earnings per common share assuming dilution | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 |
Accounting_for_Allowance_for_L1
Accounting for Allowance for Loan Losses and Impairment of a Loan (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||||||||||||||
Accounting For Allowance For Loan Losses And Impairment Of Loan Tables | ' | ||||||||||||||||||||||||||||||||||||
Schedule of troubled debt restructuring and modifications of loans | ' | ||||||||||||||||||||||||||||||||||||
The following table presents the Bank’s loans classified as TDRs by loan type and accrual status as of March 31, 2014: | |||||||||||||||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||||||||||||||
Accrual | Non-accrual | Total | |||||||||||||||||||||||||||||||||||
Status | Status | TDRs | |||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 952 | $ | — | $ | 952 | |||||||||||||||||||||||||||||||
Multi-family | 612 | — | 612 | ||||||||||||||||||||||||||||||||||
Construction and land development | 262 | — | 262 | ||||||||||||||||||||||||||||||||||
Non-residential real estate | 182 | 1,134 | 1,316 | ||||||||||||||||||||||||||||||||||
Owner occupied | 254 | 299 | 553 | ||||||||||||||||||||||||||||||||||
Commercial | — | 157 | 157 | ||||||||||||||||||||||||||||||||||
HELOC and junior Lien | — | — | — | ||||||||||||||||||||||||||||||||||
Total | $ | 2,262 | $ | 1,590 | $ | 3,852 | |||||||||||||||||||||||||||||||
Schedule of activity in the allowance for loan losses | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes the activity in the allowance for loan losses for the nine months ended March 31, 2014: | |||||||||||||||||||||||||||||||||||||
Resid. Mtg | Multi- family | Constr and land dev. | Non- residential real estate | Owner occupied | Comm’l | HELOC and junior lien | Consumer | Total | |||||||||||||||||||||||||||||
Allowance for Credit Losses: | |||||||||||||||||||||||||||||||||||||
Balance at June 30, 2013 | $ | 665 | $ | 475 | $ | 491 | $ | 981 | $ | 347 | $ | 2,481 | $ | 168 | $ | 52 | $ | 5,660 | |||||||||||||||||||
Charge Offs | (75 | ) | (398 | ) | (248 | ) | (619 | ) | — | (539 | ) | (4 | ) | (62 | ) | (1,945 | ) | ||||||||||||||||||||
Recoveries | — | — | 49 | — | 66 | 77 | — | 12 | 204 | ||||||||||||||||||||||||||||
Provision | 298 | (26 | ) | 576 | 510 | (4 | ) | (1,379 | ) | (16 | ) | 41 | — | ||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 888 | $ | 51 | $ | 868 | $ | 872 | $ | 409 | $ | 640 | $ | 148 | $ | 43 | $ | 3,919 | |||||||||||||||||||
Ending balance, Individually Evaluated | $ | — | $ | — | $ | — | $ | 54 | $ | — | $ | 97 | $ | — | $ | — | $ | 151 | |||||||||||||||||||
Ending balance, Collectively Evaluated | $ | 888 | $ | 51 | $ | 868 | $ | 818 | $ | 409 | $ | 543 | $ | 148 | $ | 43 | $ | 3,768 | |||||||||||||||||||
Loans: | |||||||||||||||||||||||||||||||||||||
Balance at March 31, 2014 | $ | 78,449 | $ | 9,351 | $ | 37,836 | $ | 63,232 | $ | 74,570 | $ | 63,269 | $ | 17,392 | $ | 2,588 | $ | 346,687 | |||||||||||||||||||
Ending balance, Individually Evaluated | $ | — | $ | — | $ | 122 | $ | 1,134 | $ | — | $ | 540 | $ | — | $ | — | $ | 1,796 | |||||||||||||||||||
Ending balance, Collectively Evaluated | $ | 78,449 | $ | 9,351 | $ | 37,714 | $ | 62,098 | $ | 74,570 | $ | 62,729 | $ | 17,392 | $ | 2,588 | $ | 344,891 | |||||||||||||||||||
Schedule of aging analysis of the loan portfolio | ' | ||||||||||||||||||||||||||||||||||||
The following table is an aging analysis of the loan portfolio at March 31, 2014: | |||||||||||||||||||||||||||||||||||||
30-59 days past due | 60-89 days past due | 90 or more days past due and still accruing | Nonaccrual | Total past due and nonaccrual | Total Current | Total loans receivable | |||||||||||||||||||||||||||||||
Residential Mortgage | $ | 1,565 | $ | 17 | $ | — | $ | 1,917 | $ | 3,499 | $ | 74,950 | $ | 78,449 | |||||||||||||||||||||||
Multi-family | — | — | — | — | — | 9,351 | 9,351 | ||||||||||||||||||||||||||||||
Construction/land development | 9 | — | — | 600 | 609 | 37,227 | 37,836 | ||||||||||||||||||||||||||||||
Non-residential real estate | 347 | — | — | 1,598 | 1,945 | 61,287 | 63,232 | ||||||||||||||||||||||||||||||
Owner occupied | — | — | — | 1,061 | 1,061 | 73,509 | 74,570 | ||||||||||||||||||||||||||||||
Commercial | 80 | — | — | 1,626 | 1,706 | 61,563 | 63,269 | ||||||||||||||||||||||||||||||
HELOC and Junior Lien | — | — | — | 25 | 25 | 17,367 | 17,392 | ||||||||||||||||||||||||||||||
Consumer | 6 | — | — | — | 6 | 2,582 | 2,588 | ||||||||||||||||||||||||||||||
Total | $ | 2,007 | $ | 17 | $ | — | $ | 6,827 | $ | 8,851 | $ | 337,836 | $ | 346,687 | |||||||||||||||||||||||
Schedule of credit risk profile by internally assigned grade | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes the credit risk profile by internally assigned grade at March 31, 2014: | |||||||||||||||||||||||||||||||||||||
Residential Mortgage | Multi-family | Constr and land dev. | Non-residential real estate | Owner occupied | Comm’l | HELOC and Junior Lien | Consumer | Total | |||||||||||||||||||||||||||||
Grade: | |||||||||||||||||||||||||||||||||||||
Pass | $ | 73,104 | $ | 8,648 | $ | 35,607 | $ | 52,991 | $ | 71,905 | $ | 60,942 | $ | 17,112 | $ | 2,586 | $ | 322,895 | |||||||||||||||||||
Watch | 2,996 | 612 | 700 | 7,096 | 1,604 | 605 | 255 | 2 | 13,870 | ||||||||||||||||||||||||||||
Special mention | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Substandard | 2,349 | 91 | 1,529 | 3,145 | 1,061 | 1,722 | 25 | — | 9,922 | ||||||||||||||||||||||||||||
Doubtful | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Loss | — | — | — | — | — | — | — | — | — | ||||||||||||||||||||||||||||
Total: | $ | 78,449 | $ | 9,351 | $ | 37,836 | $ | 63,232 | $ | 74,570 | $ | 63,269 | $ | 17,392 | $ | 2,588 | $ | 346,687 | |||||||||||||||||||
Schedule of composition of impaired loans | ' | ||||||||||||||||||||||||||||||||||||
The following table summarizes the composition of impaired loans, the associated specific reserves, and interest income recognized on impaired loans at March 31, 2014: | |||||||||||||||||||||||||||||||||||||
Recorded investment | Unpaid principal balance | Specific allowance | Interest income recognized | ||||||||||||||||||||||||||||||||||
With an allowance recorded: | |||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | — | $ | — | $ | — | $ | — | |||||||||||||||||||||||||||||
Multi-family | — | — | — | — | |||||||||||||||||||||||||||||||||
Construction and land development | 122 | 122 | — | 7 | |||||||||||||||||||||||||||||||||
Non-residential real estate | 1,080 | 1,134 | 54 | — | |||||||||||||||||||||||||||||||||
Owner occupied | — | — | — | — | |||||||||||||||||||||||||||||||||
Commercial | 443 | 540 | 97 | 5 | |||||||||||||||||||||||||||||||||
HELOC and junior lien | — | — | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 1,645 | $ | 1,796 | $ | 151 | $ | 12 | |||||||||||||||||||||||||||||
With no related allowance: | |||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 1,399 | $ | 1,399 | $ | — | $ | 47 | |||||||||||||||||||||||||||||
Multi-family | 612 | 612 | — | 39 | |||||||||||||||||||||||||||||||||
Construction and land development | 1,050 | 1,050 | — | 8 | |||||||||||||||||||||||||||||||||
Non-residential real estate | 1,286 | 1,286 | — | 33 | |||||||||||||||||||||||||||||||||
Owner occupied | 810 | 810 | — | 1 | |||||||||||||||||||||||||||||||||
Commercial | — | — | — | — | |||||||||||||||||||||||||||||||||
HELOC and junior lien | — | — | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 5,157 | $ | 5,157 | $ | — | $ | 128 | |||||||||||||||||||||||||||||
Total: | |||||||||||||||||||||||||||||||||||||
Residential mortgage | $ | 1,399 | $ | 1,399 | $ | — | $ | 47 | |||||||||||||||||||||||||||||
Multi-family | 612 | 612 | — | 39 | |||||||||||||||||||||||||||||||||
Construction and land development | 1,172 | 1,172 | — | 15 | |||||||||||||||||||||||||||||||||
Non-residential real estate | 2,366 | 2,420 | 54 | 33 | |||||||||||||||||||||||||||||||||
Owner occupied | 810 | 810 | — | 1 | |||||||||||||||||||||||||||||||||
Commercial | 443 | 540 | 97 | 5 | |||||||||||||||||||||||||||||||||
HELOC and junior lien | — | — | — | — | |||||||||||||||||||||||||||||||||
Consumer | — | — | — | — | |||||||||||||||||||||||||||||||||
Total | $ | 6,802 | $ | 6,953 | $ | 151 | $ | 140 | |||||||||||||||||||||||||||||
Average impaired loans for the nine months ended March 31, 2014 | $ | 9,320 |
Stock_Incentive_Plans_Tables
Stock Incentive Plans (Tables) | 9 Months Ended | ||||||||
Mar. 31, 2014 | |||||||||
Stock Incentive Plans Tables | ' | ||||||||
Schedule of the Company's stock option plans | ' | ||||||||
The table below summarizes the status of the Company’s stock option plans as of March 31, 2014: | |||||||||
Nine Months Ended | |||||||||
31-Mar-14 | |||||||||
Weighted- | |||||||||
average | |||||||||
Shares | exercise price | ||||||||
Outstanding at beginning of period | 360,638 | $ | 13.04 | ||||||
Granted during the nine-month period | — | — | |||||||
Options forfeited | (340,638 | ) | 13.69 | ||||||
Options exercised | — | — | |||||||
Outstanding at March 31, 2014 | 20,000 | $ | 1.97 | ||||||
Options exercisable at March 31, 2014 | 4,000 | $ | 1.97 | ||||||
The following information applies to options outstanding at March 31, 2014: | |||||||||
Number outstanding | 20,000 | ||||||||
Range of exercise prices | $ | 1.97 | |||||||
Weighted-average exercise price | $ | 1.97 | |||||||
Weighted-average remaining contractual life | 8.33 | ||||||||
Number of options remaining for future issuance | 678,750 |
Investment_Securities_Tables
Investment Securities (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||||||
Investment Securities Tables | ' | ||||||||||||||||||||||||
Schedule of investment securities | ' | ||||||||||||||||||||||||
Investment securities are summarized as follows: | |||||||||||||||||||||||||
At March 31, 2014 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
Federal agency | $ | 17,420 | $ | 46 | $ | (504 | ) | $ | 16,962 | ||||||||||||||||
Mortgage-backed | 62,392 | 887 | (711 | ) | 62,568 | ||||||||||||||||||||
Municipals | 7,940 | 192 | (147 | ) | 7,985 | ||||||||||||||||||||
Other Securities | 607 | — | (114 | ) | 493 | ||||||||||||||||||||
Total securities available-for-sale | $ | 88,359 | $ | 1,125 | $ | (1,476 | ) | $ | 88,008 | ||||||||||||||||
Weighted-average rate | 2.13 | % | |||||||||||||||||||||||
Pledged at March 31, 2014 | $ | 39,673 | |||||||||||||||||||||||
At June 30, 2013 | |||||||||||||||||||||||||
Amortized | Unrealized | Unrealized | Fair | ||||||||||||||||||||||
Cost | Gains | Losses | Value | ||||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
Securities available-for-sale | |||||||||||||||||||||||||
Debt securities: | |||||||||||||||||||||||||
Federal agency | $ | 21,985 | $ | 88 | $ | (420 | ) | $ | 21,653 | ||||||||||||||||
Mortgage-backed | 65,607 | 1,096 | (835 | ) | 65,868 | ||||||||||||||||||||
Municipals | 8,004 | 172 | (171 | ) | 8,005 | ||||||||||||||||||||
Other Securities | 607 | — | (109 | ) | 498 | ||||||||||||||||||||
Total securities available-for-sale | $ | 96,203 | $ | 1,356 | $ | (1,535 | ) | $ | 96,024 | ||||||||||||||||
Weighted-average rate | 1.83 | % | |||||||||||||||||||||||
Pledged at June 30, 2013 | $ | 11,017 | |||||||||||||||||||||||
Schedule of securities with unrealized losses not recognized in income | ' | ||||||||||||||||||||||||
Securities with unrealized losses not recognized in income are as follows: | |||||||||||||||||||||||||
Less than 12 months | 12 months or more | Total | |||||||||||||||||||||||
Fair | Unrealized | Fair | Unrealized | Fair | Unrealized | ||||||||||||||||||||
Value | Losses | Value | Losses | Value | Losses | ||||||||||||||||||||
(Dollars in thousands) | |||||||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||||||
Federal agency securities | $ | 9,527 | $ | (440 | ) | $ | 936 | $ | (64 | ) | $ | 10,463 | $ | (504 | ) | ||||||||||
Mortgage-backed securities | 20,387 | (429 | ) | 7,042 | (282 | ) | 27,429 | (711 | ) | ||||||||||||||||
Municipal securities | 2,373 | (114 | ) | 902 | (33 | ) | 3,275 | (147 | ) | ||||||||||||||||
Other securities | — | — | 493 | (114 | ) | 493 | (114 | ) | |||||||||||||||||
$ | 32,287 | $ | (983 | ) | $ | 9,373 | $ | (493 | ) | $ | 41,660 | $ | (1,476 | ) | |||||||||||
Schedule of maturities of debt securities | ' | ||||||||||||||||||||||||
Maturities of debt securities at March 31, 2014 are summarized as follows: | |||||||||||||||||||||||||
Weighted | |||||||||||||||||||||||||
Amortized | Fair | Average | |||||||||||||||||||||||
Cost | Value | Yield | |||||||||||||||||||||||
Within 1 year | $ | 2,790 | $ | 2,798 | 1.36 | % | |||||||||||||||||||
Over 1 year through 5 years | 6,842 | 6,769 | 1.53 | % | |||||||||||||||||||||
After 5 years through 10 years | 20,500 | 20,368 | 1.88 | % | |||||||||||||||||||||
Over 10 years | 58,227 | 58,073 | 2.2 | % | |||||||||||||||||||||
$ | 88,359 | $ | 88,008 | 2.05 | % |
Fair_Value_Disclosures_Tables
Fair Value Disclosures (Tables) | 9 Months Ended | ||||||||||||||||||||
Mar. 31, 2014 | |||||||||||||||||||||
Fair Value Disclosures Tables | ' | ||||||||||||||||||||
Schedule of assets and liabilities recorded at fair value on a recurring basis | ' | ||||||||||||||||||||
Below is a table that presents information about certain assets and liabilities measured at fair value: | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Total Carrying | |||||||||||||||||||||
Amount in | Assets/Liabilities | ||||||||||||||||||||
Statement of | Measured at | ||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | Financial Condition | Fair Value | ||||||||||||||||
Securities available for sale | — | $ | 87,136 | $ | 872 | $ | 88,008 | $ | 88,008 | ||||||||||||
Schedule of assets and liabilities recorded at fair value on a nonrecurring basis | ' | ||||||||||||||||||||
Assets measured at fair value on a nonrecurring basis are included in the table below. | |||||||||||||||||||||
31-Mar-14 | |||||||||||||||||||||
Total Gains | |||||||||||||||||||||
Description | Level 1 | Level 2 | Level 3 | (Losses) | |||||||||||||||||
Impaired Loans | — | — | $ | 6,802 | — | ||||||||||||||||
Other real estate owned | — | — | 4,928 | — | |||||||||||||||||
Schedule of carrying value and estimated fair value of financial instruments | ' | ||||||||||||||||||||
The carrying value and estimated fair value of the Company’s financial instruments are as follows: | |||||||||||||||||||||
At | At | ||||||||||||||||||||
31-Mar-14 | 30-Jun-13 | ||||||||||||||||||||
Carrying | Fair | Carrying | Fair | ||||||||||||||||||
Amount | Value | Amount | Value | ||||||||||||||||||
Financial assets: | |||||||||||||||||||||
Cash and due from banks and interest-earning deposits with banks | $ | 20,888 | $ | 20,888 | $ | 24,514 | $ | 24,514 | |||||||||||||
Available-for-sale securities | 88,008 | 88,008 | 96,024 | 96,024 | |||||||||||||||||
Federal Home Loan Bank stock | 4,635 | 4,635 | 4,735 | 4,735 | |||||||||||||||||
Bank owned life insurance | 7,281 | 7,281 | 7,100 | 7,100 | |||||||||||||||||
Loans receivable, net | 342,303 | 344,897 | 321,299 | 329,268 | |||||||||||||||||
Accrued interest receivable | 1,321 | 1,321 | 1,409 | 1,409 | |||||||||||||||||
Loans held-for-sale | 165 | 165 | 97 | 97 | |||||||||||||||||
Financial liabilities: | |||||||||||||||||||||
Deposits | (383,974 | ) | (375,586 | ) | (399,642 | ) | (391,442 | ) | |||||||||||||
Borrowed funds | (60,492 | ) | (61,124 | ) | (38,177 | ) | (39,505 | ) | |||||||||||||
Subordinated debentures | (7,442 | ) | (5,650 | ) | (7,358 | ) | (4,950 | ) | |||||||||||||
Off-balance sheet assets (liabilities): | |||||||||||||||||||||
Commitments to extend credit | — | 16,577 | — | 15,330 | |||||||||||||||||
Unused letters of credit | — | 547 | — | 320 | |||||||||||||||||
Unused lines of credit | — | 30,142 | — | 27,663 |
Limitation_on_Capital_Distribu1
Limitation on Capital Distributions (Details Narrative) | Mar. 31, 2014 |
Limitation On Capital Distributions Details Narrative | ' |
Total Risk-based capital ratio, maximum requirement | 8.00% |
Tier 1 Risk-based capital ratio, maximum requirement | 4.00% |
Tier 1 Leverage Ratio, maximum requirement | 4.00% |
Earnings_Per_Common_Share_Deta
Earnings Per Common Share (Details Narrative) | 9 Months Ended |
Mar. 31, 2014 | |
Earnings Per Common Share Details Narrative | ' |
Antidilutive stock options | 360,638 |
Earnings_Per_Common_Share_Deta1
Earnings Per Common Share (Details) | 3 Months Ended | 9 Months Ended | ||
Mar. 31, 2014 | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 | |
Earnings Per Common Share | ' | ' | ' | ' |
Weighted average number of common shares used in computing basic earnings per common share | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 |
Weighted average number of common shares and dilutive potential common shares used in computing earnings per common share assuming dilution | 6,311,614 | 6,292,214 | 6,284,605 | 6,271,036 |
Accounting_for_Allowance_for_L2
Accounting for Allowance for Loan Losses and Impairment of a Loan (Details Narrative) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Accounting For Allowance For Loan Losses And Impairment Of Loan Details Narrative | ' | ' |
Total TDRs | $3,852 | $9,100 |
Accounting_for_Allowance_for_L3
Accounting for Allowance for Loan Losses and Impairment of a Loan (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Loans classified as TDRs: | ' | ' |
Accrual Status | $2,262 | ' |
Non-accrual status | 1,590 | ' |
Total TDRs | 3,852 | 9,100 |
Residential Mortgage [Member] | ' | ' |
Loans classified as TDRs: | ' | ' |
Accrual Status | 952 | ' |
Total TDRs | 952 | ' |
Multi-family Real Estate Loans [Member] | ' | ' |
Loans classified as TDRs: | ' | ' |
Accrual Status | 612 | ' |
Total TDRs | 612 | ' |
Construction and Land Development Loans [Member] | ' | ' |
Loans classified as TDRs: | ' | ' |
Accrual Status | 262 | ' |
Total TDRs | 262 | ' |
Nonresidential Real Estate Loans [Member] | ' | ' |
Loans classified as TDRs: | ' | ' |
Accrual Status | 182 | ' |
Non-accrual status | 1,134 | ' |
Total TDRs | 1,316 | ' |
Owner Occupied Loans [Member] | ' | ' |
Loans classified as TDRs: | ' | ' |
Non-accrual status | 299 | ' |
Total TDRs | 553 | ' |
Commercial Loans [Member] | ' | ' |
Loans classified as TDRs: | ' | ' |
Non-accrual status | 157 | ' |
Total TDRs | $157 | ' |
Accounting_for_Allowance_for_L4
Accounting for Allowance for Loan Losses and Impairment of a Loan (Details 1) (USD $) | 3 Months Ended | 9 Months Ended | |
In Thousands, unless otherwise specified | Mar. 31, 2013 | Mar. 31, 2014 | Mar. 31, 2013 |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | $5,660 | ' |
Charge offs | ' | -1,945 | ' |
Recoveries | ' | 204 | ' |
Provision | 200 | ' | 800 |
Ending balance | ' | 3,919 | ' |
Individually evaluated for impairment | ' | 151 | ' |
Collectively evaluated for impairment | ' | 3,768 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 346,687 | ' |
Individually evaluated for impairment | ' | 1,796 | ' |
Collectively evaluated for impairment | ' | 344,891 | ' |
Residential Mortgage [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 665 | ' |
Charge offs | ' | -75 | ' |
Provision | ' | 298 | ' |
Ending balance | ' | 888 | ' |
Collectively evaluated for impairment | ' | 888 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 78,449 | ' |
Collectively evaluated for impairment | ' | 78,449 | ' |
Multi-family Real Estate Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 475 | ' |
Charge offs | ' | -398 | ' |
Provision | ' | -26 | ' |
Ending balance | ' | 51 | ' |
Collectively evaluated for impairment | ' | 51 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 9,351 | ' |
Collectively evaluated for impairment | ' | 9,351 | ' |
Construction and Land Development Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 491 | ' |
Charge offs | ' | -248 | ' |
Recoveries | ' | 49 | ' |
Provision | ' | 576 | ' |
Ending balance | ' | 868 | ' |
Collectively evaluated for impairment | ' | 868 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 37,836 | ' |
Individually evaluated for impairment | ' | 122 | ' |
Collectively evaluated for impairment | ' | 37,714 | ' |
Nonresidential Real Estate Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 981 | ' |
Charge offs | ' | -619 | ' |
Provision | ' | 510 | ' |
Ending balance | ' | 872 | ' |
Individually evaluated for impairment | ' | 54 | ' |
Collectively evaluated for impairment | ' | 818 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 63,232 | ' |
Individually evaluated for impairment | ' | 1,134 | ' |
Collectively evaluated for impairment | ' | 62,098 | ' |
Owner Occupied Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 347 | ' |
Recoveries | ' | 66 | ' |
Provision | ' | -4 | ' |
Ending balance | ' | 409 | ' |
Collectively evaluated for impairment | ' | 409 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 74,570 | ' |
Collectively evaluated for impairment | ' | 74,570 | ' |
Commercial Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 2,481 | ' |
Charge offs | ' | -539 | ' |
Recoveries | ' | 77 | ' |
Provision | ' | -1,379 | ' |
Ending balance | ' | 640 | ' |
Individually evaluated for impairment | ' | 97 | ' |
Collectively evaluated for impairment | ' | 543 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 63,269 | ' |
Individually evaluated for impairment | ' | 540 | ' |
Collectively evaluated for impairment | ' | 62,729 | ' |
HELOC and Junior Liens [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 168 | ' |
Charge offs | ' | -4 | ' |
Provision | ' | -16 | ' |
Ending balance | ' | 148 | ' |
Collectively evaluated for impairment | ' | 148 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 17,392 | ' |
Collectively evaluated for impairment | ' | 17,392 | ' |
Consumer Loans [Member] | ' | ' | ' |
Allowance for loan losses: | ' | ' | ' |
Beginning Balance | ' | 52 | ' |
Charge offs | ' | -62 | ' |
Recoveries | ' | 12 | ' |
Provision | ' | 41 | ' |
Ending balance | ' | 43 | ' |
Collectively evaluated for impairment | ' | 43 | ' |
Net Loans receivable: | ' | ' | ' |
Gross Loans | ' | 2,588 | ' |
Collectively evaluated for impairment | ' | $2,588 | ' |
Accounting_for_Allowance_for_L5
Accounting for Allowance for Loan Losses and Impairment of a Loan (Details 2) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Loans Receivable Payment Age Analysis | ' |
30-59 days past due | $2,007 |
60-89 days past due | 17 |
Nonaccrual | 6,827 |
Total past due | 8,851 |
Total Current | 337,836 |
Total loans receivable | 346,687 |
Residential Mortgage [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
30-59 days past due | 1,565 |
60-89 days past due | 17 |
Nonaccrual | 1,917 |
Total past due | 3,499 |
Total Current | 74,950 |
Total loans receivable | 78,449 |
Multi-family Real Estate Loans [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
Total Current | 9,351 |
Total loans receivable | 9,351 |
Construction and Land Development Loans [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
30-59 days past due | 9 |
Nonaccrual | 600 |
Total past due | 609 |
Total Current | 37,227 |
Total loans receivable | 37,836 |
Nonresidential Real Estate Loans [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
30-59 days past due | 347 |
Nonaccrual | 1,598 |
Total past due | 1,945 |
Total Current | 61,287 |
Total loans receivable | 63,232 |
Owner Occupied Loans [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
Nonaccrual | 1,061 |
Total past due | 1,061 |
Total Current | 73,509 |
Total loans receivable | 74,570 |
Commercial Loans [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
30-59 days past due | 80 |
Nonaccrual | 1,626 |
Total past due | 1,706 |
Total Current | 61,563 |
Total loans receivable | 63,269 |
HELOC and Junior Liens [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
Nonaccrual | 25 |
Total past due | 25 |
Total Current | 17,367 |
Total loans receivable | 17,392 |
Consumer Loans [Member] | ' |
Loans Receivable Payment Age Analysis | ' |
30-59 days past due | 6 |
Total past due | 6 |
Total Current | 2,582 |
Total loans receivable | $2,588 |
Accounting_for_Allowance_for_L6
Accounting for Allowance for Loan Losses and Impairment of a Loan (Details 3) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | $346,687 |
Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 322,895 |
Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 13,870 |
Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 9,922 |
Residential Mortgage [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 78,449 |
Residential Mortgage [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 73,104 |
Residential Mortgage [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 2,996 |
Residential Mortgage [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 2,349 |
Multi-family Real Estate Loans [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 9,351 |
Multi-family Real Estate Loans [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 8,648 |
Multi-family Real Estate Loans [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 612 |
Multi-family Real Estate Loans [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 91 |
Construction and Land Development Loans [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 37,836 |
Construction and Land Development Loans [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 35,607 |
Construction and Land Development Loans [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 700 |
Construction and Land Development Loans [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 1,529 |
Nonresidential Real Estate Loans [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 63,232 |
Nonresidential Real Estate Loans [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 52,991 |
Nonresidential Real Estate Loans [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 7,096 |
Nonresidential Real Estate Loans [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 3,145 |
Owner Occupied Loans [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 74,570 |
Owner Occupied Loans [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 71,905 |
Owner Occupied Loans [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 1,604 |
Owner Occupied Loans [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 1,061 |
Commercial Loans [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 63,269 |
Commercial Loans [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 60,942 |
Commercial Loans [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 605 |
Commercial Loans [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 1,722 |
HELOC and Junior Liens [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 17,392 |
HELOC and Junior Liens [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 17,112 |
HELOC and Junior Liens [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 255 |
HELOC and Junior Liens [Member] | Substandard [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 25 |
Consumer Loans [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 2,588 |
Consumer Loans [Member] | Pass [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | 2,586 |
Consumer Loans [Member] | Watch [Member] | ' |
Credit risk profile by internally assigned grade: | ' |
Gross Loans | $2 |
Accounting_for_Allowance_for_L7
Accounting for Allowance for Loan Losses and Impairment of a Loan (Details 4) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
With an allowance recorded: | ' |
Recorded Investment | $1,645 |
Unpaid Principal Balance | 1,796 |
Specific Allowance | 151 |
Interest Income Recognized | 12 |
With no related allowance: | ' |
Recorded Investment | 5,157 |
Unpaid Principal Balance | 5,157 |
Interest Income Recognized | 128 |
Total Impaired Loans: | ' |
Recorded Investment | 6,802 |
Unpaid Principal Balance | 6,953 |
Interest Income | 140 |
Average impaired loans | 9,320 |
Residential Mortgage [Member] | ' |
With no related allowance: | ' |
Recorded Investment | 1,399 |
Unpaid Principal Balance | 1,399 |
Interest Income Recognized | 47 |
Total Impaired Loans: | ' |
Recorded Investment | 1,399 |
Unpaid Principal Balance | 1,399 |
Interest Income | 47 |
Multi-family Real Estate Loans [Member] | ' |
With no related allowance: | ' |
Recorded Investment | 612 |
Unpaid Principal Balance | 612 |
Interest Income Recognized | 39 |
Total Impaired Loans: | ' |
Recorded Investment | 612 |
Unpaid Principal Balance | 612 |
Interest Income | 39 |
Construction and Land Development Loans [Member] | ' |
With an allowance recorded: | ' |
Recorded Investment | 122 |
Unpaid Principal Balance | 122 |
Interest Income Recognized | 7 |
With no related allowance: | ' |
Recorded Investment | 1,050 |
Unpaid Principal Balance | 1,050 |
Interest Income Recognized | 8 |
Total Impaired Loans: | ' |
Recorded Investment | 1,172 |
Unpaid Principal Balance | 1,172 |
Interest Income | 15 |
Nonresidential Real Estate Loans [Member] | ' |
With an allowance recorded: | ' |
Recorded Investment | 1,080 |
Unpaid Principal Balance | 1,134 |
Specific Allowance | 54 |
With no related allowance: | ' |
Recorded Investment | 1,286 |
Unpaid Principal Balance | 1,286 |
Interest Income Recognized | 33 |
Total Impaired Loans: | ' |
Recorded Investment | 2,366 |
Unpaid Principal Balance | 2,420 |
Interest Income | 33 |
Owner Occupied Loans [Member] | ' |
With no related allowance: | ' |
Recorded Investment | 810 |
Unpaid Principal Balance | 810 |
Interest Income Recognized | 1 |
Total Impaired Loans: | ' |
Recorded Investment | 810 |
Unpaid Principal Balance | 810 |
Interest Income | 1 |
Commercial Loans [Member] | ' |
With an allowance recorded: | ' |
Recorded Investment | 443 |
Unpaid Principal Balance | 540 |
Specific Allowance | 97 |
Interest Income Recognized | 5 |
Total Impaired Loans: | ' |
Recorded Investment | 443 |
Unpaid Principal Balance | 540 |
Interest Income | $5 |
Recovered_Sheet1
Financial Instruments with off-Balance Sheet Risk (Details Narrative) (USD $) | Mar. 31, 2014 |
In Thousands, unless otherwise specified | |
Commitment to extend credit [Member] | ' |
Unfunded commitments | $16,600 |
Unused letters of credit [Member] | ' |
Unfunded commitments | 547 |
Unused lines of credit [Member] | ' |
Unfunded commitments | $30,100 |
Stock_Incentive_Plans_Details_
Stock Incentive Plans (Details Narrative) (USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Compensation expense for grants vesting | $4 |
Restricted Stock Units [Member] | ' |
Maximum number of shares authorized | 279,500 |
Stock Option Plan [Member] | ' |
Maximum number of shares authorized | 698,750 |
Stock_Incentive_Plans_Details
Stock Incentive Plans (Details) (USD $) | 9 Months Ended |
Mar. 31, 2014 | |
Number of Shares | ' |
Options outstanding, beginning | 360,638 |
Options forfeited | -340,638 |
Options outstanding, ending | 20,000 |
Options exercisable, ending | 4,000 |
Weighted Average Exercise Price | ' |
Options outstanding, beginning | $13.04 |
Options forfeited | $13.69 |
Options outstanding, ending | $1.97 |
Options exercisable, ending | $1.97 |
Stock_Incentive_Plans_Details_1
Stock Incentive Plans (Details 1) (USD $) | 9 Months Ended | |
Mar. 31, 2014 | Jun. 30, 2013 | |
Stock Incentive Plans Details 1 | ' | ' |
Options outstanding | 20,000 | 360,638 |
Weighted average exercise price | $1.97 | $13.04 |
Weighted average remaining contractual life | '8 years 4 months | ' |
Number of options remaining for future issuance | 678,750 | ' |
Investment_Securities_Details_
Investment Securities (Details Narrative) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 |
Unrealized losses on securities | $1,476 | ($1,535) |
Federal agency [Member] | ' | ' |
Unrealized losses on securities | 504 | 420 |
Number of securities in unrealized loss position | 11 | ' |
GSE Residential Mortgage-Backed Securities | ' | ' |
Unrealized losses on securities | 711 | ' |
Number of securities in unrealized loss position | 38 | ' |
Municipals [Member] | ' | ' |
Unrealized losses on securities | 147 | 171 |
Number of securities in unrealized loss position | 7 | ' |
Other Securities [Member] | ' | ' |
Unrealized losses on securities | $114 | $109 |
Number of securities in unrealized loss position | 1 | ' |
Investment_Securities_Details
Investment Securities (Details) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 |
Available For Sale Securities | ' | ' |
Amortized Cost | $88,359 | $96,203 |
Unrealized Gains | 1,125 | 1,356 |
Unrealized Losses | -1,476 | 1,535 |
Securities available for sale fair value | 88,008 | 96,024 |
Weighted-average rate | 2.05% | 1.83% |
Pledged | 39,673 | 11,017 |
Federal agency [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Amortized Cost | 17,420 | 21,985 |
Unrealized Gains | 46 | 88 |
Unrealized Losses | -504 | -420 |
Securities available for sale fair value | 16,962 | 21,653 |
Mortgage-backed [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Amortized Cost | 62,392 | 65,607 |
Unrealized Gains | 887 | 1,096 |
Unrealized Losses | -711 | -835 |
Securities available for sale fair value | 62,568 | 65,868 |
Municipals [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Amortized Cost | 7,940 | 8,004 |
Unrealized Gains | 192 | 172 |
Unrealized Losses | -147 | -171 |
Securities available for sale fair value | 7,985 | 8,005 |
Other Securities [Member] | ' | ' |
Available For Sale Securities | ' | ' |
Amortized Cost | 607 | 607 |
Unrealized Losses | -114 | -109 |
Securities available for sale fair value | $493 | $498 |
Investment_Securities_Details_1
Investment Securities (Details 1) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 |
Available For Sale Securities | ' |
Less than 12 Months, Fair Value | $32,287 |
Less than 12 Months, Unrealized Losses | -983 |
12 Months or Longer, Fair Value | 9,373 |
12 Months or Longer, Unrealized Losses | -493 |
Total, Fair Value | 41,660 |
Total, Unrealized Losses | -1,476 |
Federal agency [Member] | ' |
Available For Sale Securities | ' |
Less than 12 Months, Fair Value | 9,527 |
Less than 12 Months, Unrealized Losses | -440 |
12 Months or Longer, Fair Value | 936 |
12 Months or Longer, Unrealized Losses | -64 |
Total, Fair Value | 10,463 |
Total, Unrealized Losses | -504 |
Mortgage-backed [Member] | ' |
Available For Sale Securities | ' |
Less than 12 Months, Fair Value | 20,387 |
Less than 12 Months, Unrealized Losses | -429 |
12 Months or Longer, Fair Value | 7,042 |
12 Months or Longer, Unrealized Losses | -282 |
Total, Fair Value | 27,429 |
Total, Unrealized Losses | -711 |
Municipals [Member] | ' |
Available For Sale Securities | ' |
Less than 12 Months, Fair Value | 2,373 |
Less than 12 Months, Unrealized Losses | -114 |
12 Months or Longer, Fair Value | 902 |
12 Months or Longer, Unrealized Losses | -33 |
Total, Fair Value | 3,275 |
Total, Unrealized Losses | -147 |
Other Securities [Member] | ' |
Available For Sale Securities | ' |
12 Months or Longer, Fair Value | 493 |
12 Months or Longer, Unrealized Losses | -114 |
Total, Fair Value | 493 |
Total, Unrealized Losses | ($114) |
Investment_Securities_Details_2
Investment Securities (Details 2) (USD $) | 9 Months Ended | 12 Months Ended |
In Thousands, unless otherwise specified | Mar. 31, 2014 | Jun. 30, 2013 |
Available For Sale Debt securities, Amortized Cost | ' | ' |
Within 1 year | $2,790 | ' |
Over 1 year through 5 years | 6,842 | ' |
After 5 years through 10 years | 20,500 | ' |
Over 10 years | 58,227 | ' |
Total | 88,359 | ' |
Available For Sale Debt securities, Fair Value | ' | ' |
Within 1 year | 2,798 | ' |
Over 1 year through 5 years | 6,769 | ' |
After 5 years through 10 years | 20,368 | ' |
Over 10 years | 58,073 | ' |
Total | $88,008 | ' |
Available For Sale Debt securities, Weighted Average Yield | ' | ' |
Within 1 year (as a percent) | 1.36% | ' |
Over 1 year through 5 years (as a percent) | 1.53% | ' |
After 5 years through 10 years (as a percent) | 1.88% | ' |
Over 10 years (as a percent) | 2.20% | ' |
Weighted-average yield (as a percent) | 2.05% | 1.83% |
Fair_Value_Disclosures_Details
Fair Value Disclosures (Details) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Securities available for sale fair value | $88,008 | $96,024 |
Carrying Amount [Member] | ' | ' |
Securities available for sale fair value | 88,008 | 96,024 |
Fair Value [Member] | ' | ' |
Securities available for sale fair value | 88,008 | 96,024 |
Fair Value measured on a Recurring Basis [Member] | Level 2 [Member] | ' | ' |
Securities available for sale fair value | 87,136 | ' |
Fair Value measured on a Recurring Basis [Member] | Level 3 [Member] | ' | ' |
Securities available for sale fair value | 872 | ' |
Fair Value measured on a Recurring Basis [Member] | Carrying Amount [Member] | ' | ' |
Securities available for sale fair value | 88,008 | ' |
Fair Value measured on a Recurring Basis [Member] | Fair Value [Member] | ' | ' |
Securities available for sale fair value | $88,008 | ' |
Fair_Value_Disclosures_Details1
Fair Value Disclosures (Details 1) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Other real estate owned | $4,928 | $5,433 |
Fair Value measured on a Non-Recurring Basis [Member] | Level 3 [Member] | ' | ' |
Impaired Loans | 6,802 | ' |
Other real estate owned | $4,928 | ' |
Fair_Value_Disclosures_Details2
Fair Value Disclosures (Details 2) (USD $) | Mar. 31, 2014 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Financial assets: | ' | ' |
Securities available for sale | $88,008 | $96,024 |
Bank owned life insurance | 7,281 | 7,100 |
Accrued interest receivable | 305 | 349 |
Carrying Amount [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks and interest-earning deposits with banks | 20,888 | 24,514 |
Securities available for sale | 88,008 | 96,024 |
Federal Home Loan Bank stock | 4,635 | 4,735 |
Bank owned life insurance | 7,281 | 7,100 |
Loans receivable, net | 342,303 | 321,299 |
Accrued interest receivable | 1,321 | 1,409 |
Loans held-for-sale | 165 | 97 |
Financial liabilities: | ' | ' |
Deposits | -383,974 | -399,642 |
Borrowed funds | -60,492 | -38,177 |
Subordinated debentures | -7,442 | -7,358 |
Fair Value [Member] | ' | ' |
Financial assets: | ' | ' |
Cash and due from banks and interest-earning deposits with banks | 20,888 | 24,514 |
Securities available for sale | 88,008 | 96,024 |
Federal Home Loan Bank stock | 4,635 | 4,735 |
Bank owned life insurance | 7,281 | 7,100 |
Loans receivable, net | 344,897 | 329,268 |
Accrued interest receivable | 1,321 | 1,409 |
Loans held-for-sale | 165 | 97 |
Financial liabilities: | ' | ' |
Deposits | -375,586 | -391,442 |
Borrowed funds | -61,124 | -39,505 |
Subordinated debentures | -5,650 | -4,950 |
Fair Value [Member] | Commitment to extend credit [Member] | ' | ' |
Off-balance sheet assets (liabilities): | ' | ' |
Fair Value Off-balance sheet assets (liabilities) | 16,577 | 15,330 |
Fair Value [Member] | Unused letters of credit [Member] | ' | ' |
Off-balance sheet assets (liabilities): | ' | ' |
Fair Value Off-balance sheet assets (liabilities) | 547 | 320 |
Fair Value [Member] | Unused lines of credit [Member] | ' | ' |
Off-balance sheet assets (liabilities): | ' | ' |
Fair Value Off-balance sheet assets (liabilities) | $30,142 | $27,663 |
Subordinated_Debt_Details_Narr
Subordinated Debt (Details Narrative) (USD $) | 0 Months Ended |
In Thousands, unless otherwise specified | Dec. 13, 2006 |
Subordinated Debt Details Narrative | ' |
Issue of junior subordinated debenture to third party investors | $10,000 |
Common securites issued to State of Franklin by trust | 310 |
Junior subordinated debentures owned by trust issued by State of Franklin | $10,310 |
Junior subordinated debentures, variable rate | '3-month LIBOR |
Junior subordinated debentures, variable rate spread | 1.70% |
Agreement_and_Plan_of_Merger_D
Agreement and Plan of Merger (Details Narrative) (Merger Agreement [Member], USD $) | 9 Months Ended |
In Thousands, except Share data, unless otherwise specified | Mar. 31, 2014 |
Business acquisition date | 22-Jan-14 |
Common stock price | $4 |
Merger agreement termination fee | $1,950 |
Lower Range [Member] | ' |
Exchange ratio | 0.2667 |
Weighted average common stock price | 15 |
Upper Range [Member] | ' |
Exchange ratio | 0.2222 |
Weighted average common stock price | 18 |