Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Dec. 31, 2016 | Feb. 08, 2017 | |
Document and Entity Information: | ||
Entity Registrant Name | Southern Missouri Bancorp Inc | |
Document Type | 10-Q | |
Document Period End Date | Dec. 31, 2016 | |
Trading Symbol | smbc | |
Amendment Flag | false | |
Entity Central Index Key | 916,907 | |
Current Fiscal Year End Date | --06-30 | |
Entity Common Stock, Shares Outstanding | 7,450,041 | |
Entity Filer Category | Accelerated Filer | |
Entity Current Reporting Status | Yes | |
Entity Voluntary Filers | No | |
Entity Well-known Seasoned Issuer | No | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 |
SOUTHERN MISSOURI BANCORP, INC.
SOUTHERN MISSOURI BANCORP, INC. -- CONDENSED CONSOLIDATED BALANCE SHEETS (December 31, 2016 figures unaudited) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Statements of Financial Condition | ||
Cash and cash equivalents | $ 30,367 | $ 22,554 |
Interest-bearing time deposits | 498 | 723 |
Available for sale securities | 132,116 | 129,224 |
Stock in FHLB of Des Moines | 5,906 | 6,009 |
Stock in Federal Reserve Bank of St. Louis | 2,350 | 2,343 |
Loans receivable, net | 1,209,836 | 1,135,453 |
Accrued interest receivable | 6,791 | 5,512 |
Premises and equipment, net | 46,371 | 46,943 |
Bank owned life insurance - cash surrender value | 30,491 | 30,071 |
Goodwill | 4,556 | 4,556 |
Other intangible assets, net | 2,922 | 3,295 |
Prepaid expenses and other assets | 20,145 | 17,227 |
Total assets | 1,492,349 | 1,403,910 |
Liabilities and Stockholders' Equity | ||
Deposits | 1,211,816 | 1,120,693 |
Securities sold under agreements to repurchase | 22,542 | 27,085 |
Advances from FHLB of Des Moines | 107,502 | 110,216 |
Accounts payable and other liabilities | 4,573 | 4,477 |
Accrued interest payable | 763 | 720 |
Subordinated debt | 14,800 | 14,753 |
Total liabilities | 1,361,996 | 1,277,944 |
Common stock | 75 | 74 |
Additional paid-in capital | 34,724 | 34,432 |
Retained earnings | 96,192 | 89,798 |
Accumulated other comprehensive income (loss) | (638) | 1,662 |
Total stockholders' equity | 130,353 | 125,966 |
Total liabilities and stockholders' equity | $ 1,492,349 | $ 1,403,910 |
SOUTHERN MISSOURI BANCORP, INC3
SOUTHERN MISSOURI BANCORP, INC. -- CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Statements of Financial Condition | ||
Allowance for loan losses of loans receivable | $ 14,992 | $ 13,791 |
Common stock par value | $ 0.01 | $ 0.01 |
Common stock shares authorized | 10,000,000 | 10,000,000 |
Common stock shares issued | 7,450,041 | 7,437,616 |
SOUTHERN MISSOURI BANCORP, INC
SOUTHERN MISSOURI BANCORP, INC -- CONDENSED CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
INTEREST INCOME: | ||||
Loans | $ 14,229 | $ 13,362 | $ 28,479 | $ 26,460 |
Investment securities | 500 | 496 | 1,006 | 992 |
Mortgage-backed securities | 350 | 368 | 695 | 738 |
Other interest-earning assets | 4 | 9 | 8 | 17 |
Total interest income | 15,083 | 14,235 | 30,188 | 28,207 |
INTEREST EXPENSE: | ||||
Deposits | 2,043 | 1,847 | 3,975 | 3,633 |
Securities sold under agreements to repurchase | 25 | 29 | 52 | 58 |
Advances from FHLB of Des Moines | 282 | 320 | 700 | 637 |
Subordinated debt | 160 | 139 | 312 | 274 |
Total interest expense | 2,510 | 2,335 | 5,039 | 4,602 |
NET INTEREST INCOME | 12,573 | 11,900 | 25,149 | 23,605 |
PROVISION FOR LOAN LOSSES | 656 | 496 | 1,581 | 1,114 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 11,917 | 11,404 | 23,568 | 22,491 |
NONINTEREST INCOME: | ||||
Deposit account charges and related fees | 952 | 901 | 1,894 | 1,825 |
Bank card interchange income | 719 | 632 | 1,404 | 1,268 |
Loan late charges | 100 | 81 | 185 | 158 |
Loan servicing fees | 74 | 40 | 130 | 75 |
Other loan fees | 319 | 178 | 557 | 347 |
Net realized gains on sale of loans | 241 | 153 | 513 | 287 |
Earnings on bank owned life insurance | 210 | 466 | 421 | 611 |
Other income | 85 | 340 | 171 | 421 |
Total noninterest income | 2,700 | 2,791 | 5,275 | 4,992 |
NONINTEREST EXPENSE: | ||||
Compensation and benefits | 4,513 | 4,399 | 9,300 | 8,757 |
Occupancy and equipment, net | 1,991 | 1,676 | 4,021 | 3,341 |
Deposit insurance premiums | 146 | 163 | 320 | 323 |
Legal and professional fees | 325 | 144 | 528 | 270 |
Advertising | 242 | 219 | 482 | 473 |
Postage and office supplies | 145 | 154 | 277 | 313 |
Intangible amortization | 228 | 259 | 456 | 569 |
Bank card network expense | 274 | 230 | 553 | 483 |
Other operating expense | 842 | 922 | 1,928 | 1,625 |
Total noninterest expense | 8,706 | 8,166 | 17,865 | 16,154 |
INCOME BEFORE INCOME TAXES | 5,911 | 6,029 | 10,978 | 11,329 |
INCOME TAXES | 1,735 | 1,820 | 3,093 | 3,485 |
NET INCOME | 4,176 | 4,209 | 7,885 | 7,844 |
Less: dividend on preferred shares | 35 | 85 | ||
Net income available to common shareholders | $ 4,176 | $ 4,174 | $ 7,885 | $ 7,759 |
Basic earnings per common share | $ 0.56 | $ 0.56 | $ 1.06 | $ 1.05 |
Diluted earnings per common share | 0.56 | 0.56 | 1.06 | 1.04 |
Dividends per common share | $ 0.10 | $ 0.09 | $ 0.20 | $ 0.18 |
SOUTHERN MISSOURI BANCORP, INC5
SOUTHERN MISSOURI BANCORP, INC. -- CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Statements of Comprehensive Income | ||||
Net income | $ 4,176 | $ 4,209 | $ 7,885 | $ 7,844 |
Other comprehensive income (loss): | ||||
Unrealized gains (losses) on securities available-for-sale | (3,401) | (343) | (3,631) | 47 |
Unrealized gains (losses) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income | 10 | (4) | (20) | (8) |
Tax benefit (expense) | 1,255 | 129 | 1,351 | (14) |
Total other comprehensive income (loss) | (2,136) | (218) | (2,300) | 25 |
Comprehensive income | $ 2,040 | $ 3,991 | $ 5,585 | $ 7,869 |
SOUTHERN MISSOURI BANCORP, INC6
SOUTHERN MISSOURI BANCORP, INC. -- CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Cash Flows From Operating Activities: | ||
Net income | $ 7,885 | $ 7,844 |
Items not requiring (providing) cash: | ||
Depreciation | 1,507 | 1,139 |
(Gain) loss on disposal of fixed assets | (9) | 33 |
Stock option and stock grant expense | 232 | 133 |
Amortization of intangible assets | 456 | 569 |
Amortization of purchase accounting adjustments | (577) | (1,450) |
Increase in cash surrender value of bank owned life insurance | (420) | (611) |
(Gain) loss on sale of foreclosed assets | (5) | 70 |
Provision for loan losses | 1,581 | 1,114 |
Net amortization of premiums and discounts on securities | 526 | 400 |
Originations of loans held for sale | (17,999) | (10,781) |
Proceeds from sales of loans held for sale | 18,193 | 10,630 |
Gain on sales of loans held for sale | (513) | (287) |
Changes in: | ||
Accrued interest receivable | (1,279) | (478) |
Prepaid expenses and other assets | 958 | 551 |
Accounts payable and other liabilities | (1,100) | (546) |
Deferred income taxes | 235 | (640) |
Accrued interest payable | 43 | (77) |
Net cash provided by operating activities | 9,714 | 7,613 |
Cash flows from investing activities: | ||
Net increase in loans | (75,726) | (26,154) |
Net change in interest-bearing deposits | 225 | 723 |
Proceeds from maturities of available for sale securities | 13,371 | 8,271 |
Net redemptions of Federal Home Loan Bank stock | 103 | 229 |
Net purchases of Federal Reserve Bank of Saint Louis stock | (7) | |
Purchases of available-for-sale securities | (20,440) | (8,124) |
Purchases of premises and equipment | (939) | (6,951) |
Investments in state & federal tax credits | (1,661) | (162) |
Proceeds from sale of fixed assets | 11 | |
Proceeds from sale of foreclosed assets | 484 | 1,121 |
Proceeds from BOLI claim | 549 | |
Net cash used in investing activities | (84,579) | (30,498) |
Cash flows from financing activities: | ||
Net increase in demand deposits and savings accounts | 55,029 | 60,536 |
Net increase in certificates of deposits | 36,172 | 1,548 |
Net decrease in securities sold under agreements to repurchase | (4,543) | (4,266) |
Proceeds from Federal Home Loan Bank advances | 336,055 | 247,950 |
Repayments of Federal Home Loan Bank advances | (338,605) | (253,650) |
Exercise of stock options | 61 | 36 |
Dividends paid on preferred stock | (135) | |
Dividends paid on common stock | (1,491) | (1,336) |
Redemption of preferred stock | (20,000) | |
Net cash provided by financing activities | 82,678 | 30,683 |
Increase in cash and cash equivalents | 7,813 | 7,798 |
Cash and cash equivalents at beginning of period | 22,554 | 16,775 |
Cash and cash equivalents at end of period | 30,367 | 24,573 |
Noncash investing and financing activities: | ||
Conversion of loans to foreclosed real estate | 472 | 281 |
Conversion of foreclosed real estate to loans | 54 | 185 |
Conversion of loans to repossessed assets | 44 | 141 |
Cash paid during the period for: | ||
Interest (net of interest credited) | 1,930 | 1,652 |
Income taxes | $ 2,582 | $ 2,500 |
Note 1_ Basis of Presentation
Note 1: Basis of Presentation | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 1: Basis of Presentation | Note 1: Basis of Presentation The accompanying unaudited interim consolidated financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Securities and Exchange Commission (SEC) Regulation S-X. Accordingly, they do not include all of the information and footnotes required by accounting principles generally accepted in the United States of America for complete financial statements. In the opinion of management, all material adjustments (consisting only of normal recurring accruals) considered necessary for a fair presentation have been included. The consolidated balance sheet of the Company as of June 30, 2016, has been derived from the audited consolidated balance sheet of the Company as of that date. Operating results for the three- and six- month periods ended December 31, 2016, are not necessarily indicative of the results that may be expected for the entire fiscal year. For additional information, refer to the audited consolidated financial statements included in the CompanyÂ’s June 30, 2016, Form 10-K, which was filed with the SEC. The accompanying consolidated financial statements include the accounts of the Company and its wholly-owned subsidiary, Southern Bank. All significant intercompany accounts and transactions have been eliminated in consolidation. |
Note 2_ Organization and Summar
Note 2: Organization and Summary of Significant Accounting Policies | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 2: Organization and Summary of Significant Accounting Policies | Note 2: Organization and Summary of Significant Accounting Policies Organization. The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. Principles of Consolidation. Use of Estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, estimated fair values of purchased loans, other-than-temporary impairments (OTTI), and fair value of financial instruments. Cash and Cash Equivalents. Interest-bearing Time Deposits. Available for Sale Securities. Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The Company does not invest in collateralized mortgage obligations that are considered high risk. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. As a result of this guidance, the Company’s consolidated balance sheet as of the dates presented reflects the full impairment (that is, the difference between the security’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. Federal Home Loan Bank and Federal Reserve Bank Stock. Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated. The allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans and the results of regulatory examinations. Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan. Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans, the Company initially recorded the loans at fair value, which includes estimated future losses expected to be incurred over the life of the loan. For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments, including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans. Foreclosed Real Estate. Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs. Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method. Premises and Equipment. Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software. Bank Owned Life Insurance. Goodwill. The Company’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. Intangible Assets. The Company’s intangible assets at , 201 included gross core deposit intangibles of $ .9 million with $ accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3. million , and mortgage servicing rights of $ ,000. At June 30, 201 , the Company’s intangible assets included gross core deposit intangibles of $ with $ accumulated amortization, and gross other identifiable intangibles of $3.8 million with accumulated amortization of $3. million . The Company’s core deposit intangible assets are being amortized using the straight line method , over periods ranging from five to years , with amortization expense expected to be approximately $ in fiscal 201 , $ in fiscal 201 , $ ,000 in fiscal 201 , $ ,000 in fiscal 20 , Income Taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to management’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. Incentive Plan. Outside Directors’ Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participant’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. Stock Options. Earnings Per Share. Comprehensive Income. Transfers Between Fair Value Hierarchy Levels. The following paragraphs summarize the impact of new accounting pronouncements: In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The objective of the Update is to expand the simplification of the subsequent measurement of goodwill to include public business entities and not-for-profit entities. The simplification eliminates Step 2 from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. For public companies that are U.S. Securities and Exchange Commission (SEC) filers, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740). The Update provides guidance to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, companies should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Intellectual property and property, plant, and equipment, are two common examples of assets included in the scope of this Update. For public companies, the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash payments. The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice. The Update addresses eight specific cash flow issues. F or public companies, the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is evaluating the impact that this new guidance will have on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The objective of the Update is to simplify the accounting for share-based payment transactions, including the accounting for income taxes and forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public companies, the ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting. Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Adoption of the standard requires the use of a modified retrospective transition approach for all periods presented at the time of adoption. Management is evaluating the impact of the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is evaluating the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides a five-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are included in the scope of other standards). The guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied either retrospectively or using the modified retrospective approach. In April 2015, the FASB voted to propose a one-year deferral of the effective date of ASU 2014-09 and issued an exposure draft. Management is evaluating the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. Early adoption would be permitted, but not before the original public entity effective date. |
Note 3_ Securities
Note 3: Securities | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 3: Securities | Note 3: Securities The amortized cost, gross unrealized gains, gross unrealized losses, and approximate fair value of securities available for sale consisted of the following: December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $6,470 $22 $(36) $6,456 State and political subdivisions 45,963 819 (580) 46,202 Other securities 6,572 161 (689) 6,044 Mortgage-backed: GSE residential 74,120 110 (816) 73,414 Total investments and mortgage-backed securities $133,125 $1,112 $(2,121) $132,116 June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $6,460 $57 $- $6,517 State and political subdivisions 44,368 1,820 (3) 46,185 Other securities 5,861 206 (776) 5,291 Mortgage-backed GSE residential 69,893 1,342 (4) 71,231 Total investments and mortgage-backed securities $126,582 $3,425 $(783) $129,224 The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties. December 31, 2016 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $607 $610 After one year but less than five years 11,530 11,577 After five years but less than ten years 20,986 21,072 After ten years 25,882 25,443 Total investment securities 59,005 58,702 Mortgage-backed securities 74,120 73,414 Total investments and mortgage-backed securities $133,125 $132,116 The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $112.4 million at December 31, 2016 and $106.7 million at June 30, 2016. The securities pledged consist of marketable securities, including $6.4 million and $5.5 million of U.S. Government and Federal Agency Obligations, $52.5 million and $52.2 million of Mortgage-Backed Securities, $14.1 million and $13.6 million of Collateralized Mortgage Obligations, $38.8 million and $34.8 million of State and Political Subdivisions Obligations, and $600,000 and $600,000 of Other Securities at December 31, 2016 and June 30, 2016, respectively. The following tables show our investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31 and June 30, 2016: December 31, 2016 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $3,460 $36 $- $- $3,460 $36 Obligations of state and political subdivisions 18,946 580 - - 18,946 580 Other securities - - 1,147 689 1,147 689 Mortgage-backed securities 54,732 806 343 10 55,075 816 Total investments and mortgage-backed securities $77,138 $1,422 $1,490 $699 $78,628 $2,121 June 30, 2016 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Obligations of state and political subdivisions $720 $3 $- $- $720 $3 Other securities - - 1,080 776 1,080 776 Mortgage-backed securities 2,912 4 - - 2,912 4 Total investments and mortgage-backed securities $3,632 $7 $1,080 $776 $4,712 $783 Other securities. At December 31, 2016, there were three pooled trust preferred securities with an estimated fair value of $753 ,000 and unrealized losses of $681 ,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. Rules adopted by the federal banking agencies in December 2013 to implement Section 619 of the Dodd-Frank Act (the “Volcker Rule”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund. All pooled trust preferred securities owned by the Company were included in a January 2014 listing of securities which the agencies considered to be grandfathered with regard to these prohibitions; as such, banking entities are permitted to retain their interest in these securities, provided the interest was acquired on or before December 10, 2013, unless acquired pursuant to a merger or acquisition. The December 31, 2016, cash flow analysis for these three securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these three securities included annualized prepayments of 1.3 to 1.7 percent; recoveries of 31 percent on currently deferred issuers within the next two years; new deferrals of 47 to 50 basis points annually; and eventual recoveries of eight to nine percent of new deferrals. One of these three securities has continued to receive cash interest payments in full since our purchase. The second of the three securities received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed interest payments during fiscal 2014. The third security received PIK for a period of time following the recession and financial crisis which began in 2008, but resumed interest payments during the second quarter of fiscal 2017. Our cash flow analysis indicates that interest payments are expected to continue for these three securities, and that all contracted principal and interest will be received. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2016. At December 31, 2008, analysis of a fourth pooled trust preferred security indicated other-than-temporary impairment (OTTI). The loss recognized at that time reduced the amortized cost basis for the security, and as of December 31, 2016, the estimated fair value of the security exceeds the new, lower amortized cost basis. The Company does not believe any other individual unrealized loss as of December 31, 2016, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any additional OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the other-than-temporary impairment is identified. Credit losses recognized on investments. Accumulated Credit Losses Six-Month Period Ended (dollars in thousands) December 31, 2016 2015 Credit losses on debt securities held Beginning of period $352 $365 Additions related to OTTI losses not previously recognized - - Reductions due to sales - - Reductions due to change in intent or likelihood of sale - - Additions related to increases in previously-recognized OTTI losses - - Reductions due to increases in expected cash flows (4) (5) End of period $348 $360 |
Note 4_ Loans and Allowance For
Note 4: Loans and Allowance For Loan Losses | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 4: Loans and Allowance For Loan Losses | Note 4: Loans and Allowance for Loan Losses Classes of loans are summarized as follows: (dollars in thousands) December 31, 2016 June 30, 2016 Real Estate Loans: Residential $404,397 $392,974 Construction 61,680 77,369 Commercial 519,429 452,052 Consumer loans 49,562 46,541 Commercial loans 201,645 202,045 1,236,713 1,170,981 Loans in process (11,898) (21,779) Deferred loan fees, net 13 42 Allowance for loan losses (14,992) (13,791) Total loans $1,209,836 $1,135,453 The Company’s lending activities consist of origination of loans secured by mortgages on one- to four-family residences and commercial and agricultural real estate, construction loans on residential and commercial properties, commercial and agricultural business loans and consumer loans. The Company has also occasionally purchased loan participation interests originated by other lenders and secured by properties generally located in the states of Missouri and Arkansas. Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the primary market area. The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity of up to seven years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally secured by mortgage loans for the construction of owner occupied residential real estate or to finance speculative construction secured by residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, loans may be converted to permanent status with monthly payments using amortization schedules of up to 30 years on residential and generally up to 20 years on commercial real estate. While the Company typically utilizes maturity periods ranging from 6 to 12 months to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The Company’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically obtains interim inspections completed by an independent third party. This monitoring further allows the Company opportunity to assess risk. At December 31, 2016, construction loans outstanding included 52 loans, totaling $10.2 million , for which a modification had been agreed to. At June 30, 2016, construction loans outstanding included 42 loans, totaling $10.3 million , for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs . Consumer Lending . The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years. Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. Commercial Business Lending . The Company’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans. The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. The following tables present the balance in the allowance for loan losses and the recorded investment in loans (excluding loans in process and deferred loan fees) based on portfolio segment and impairment methods as of December 31 and June 30, 2016, and activity in the allowance for loan losses for the three- and six-month periods ended December 31, 2016 and 2015: At period end and for the six months ended December 31, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,247 $1,091 $5,711 $738 $3,004 $13,791 Provision charged to expense 316 (170) 1,124 52 259 1,581 Losses charged off (97) (31) - (39) (270) (437) Recoveries 6 1 16 5 29 57 Balance, end of period $3,472 $891 $6,851 $756 $3,022 $14,992 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,472 $891 $6,851 $756 $3,022 $14,992 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $401,588 $48,412 $509,705 $49,562 $200,748 $1,210,015 Ending Balance: loans acquired with deteriorated credit quality $2,809 $1,370 $9,724 $- $897 $14,800 For the three months ended December 31, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,153 $1,121 $6,370 $738 $3,074 $14,456 Provision charged to expense 316 (200) 465 53 22 656 Losses charged off - (31) - (35) (101) (167) Recoveries 3 1 16 - 27 47 Balance, end of period $3,472 $891 $6,851 $756 $3,022 $14,992 At period end and for the six months ended December 31, 2015 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $2,819 $899 $4,956 $758 $2,866 $12,298 Provision charged to expense 475 147 324 60 108 1,114 Losses charged off (90) - (77) (35) (100) (302) Recoveries 3 - 46 3 10 62 Balance, end of period $3,207 $1,046 $5,249 $786 $2,884 $13,172 Ending Balance: individually evaluated for impairment $- $- $- $- $144 $144 Ending Balance: collectively evaluated for impairment $3,207 $1,046 $5,249 $786 $2,740 $13,028 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- For the three months ended December 31, 2015 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,295 $865 $5,049 $750 $2,853 $12,812 Provision charged to expense (64) 181 210 59 110 496 Losses charged off (26) - (56) (25) (88) (195) Recoveries 2 - 46 2 9 59 Balance, end of period $3,207 $1,046 $5,249 $786 $2,884 $13,172 At June 30, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, end of period $3,247 $1,091 $5,711 $738 $3,004 $13,791 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,247 $1,091 $5,711 $738 $3,004 $13,791 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $389,978 $54,187 $442,173 $46,541 $201,013 $1,133,892 Ending Balance: loans acquired with deteriorated credit quality $2,996 $1,403 $9,879 $- $1,032 $15,310 Management’s opinion as to the ultimate collectability of loans is subject to estimates regarding future cash flows from operations and the value of property, real and personal, pledged as collateral. These estimates are affected by changing economic conditions and the economic prospects of borrowers. The allowance for loan losses is maintained at a level that, in management’s judgment, is adequate to cover probable credit losses inherent in the loan portfolio at the balance sheet date. The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. Loan losses are charged against the allowance when an amount is determined to be uncollectible, based on management’s analysis of expected cash flow (for non-collateral-dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses is evaluated on a regular basis by management and is based upon management’s periodic review of the collectability of the loans in light of historical experience, the nature and volume of the loan portfolio, adverse situations that may affect the borrower’s ability to repay, estimated value of any underlying collateral and prevailing economic conditions. This evaluation is inherently subjective as it requires estimates that are susceptible to significant revision as more information becomes available. The allowance consists of allocated and general components. The allocated component relates to loans that are classified as impaired. For those loans that are classified as impaired, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. Under the Company’s methodology, loans are first segmented into 1) those comprising large groups of smaller-balance homogeneous loans, including single-family mortgages and installment loans, which are collectively evaluated for impairment, and 2) all other loans which are individually evaluated. Those loans in the second category are further segmented utilizing a defined grading system which involves categorizing loans by severity of risk based on conditions that may affect the ability of the borrowers to repay their debt, such as current financial information, collateral valuations, historical payment experience, credit documentation, public information, and current trends. The loans subject to credit classification represent the portion of the portfolio subject to the greatest credit risk and where adjustments to the allowance for losses on loans as a result of provision and charge offs are most likely to have a significant impact on operations. A periodic review of selected credits (based on loan size and type) is conducted to identify loans with heightened risk or probable losses and to assign risk grades. The primary responsibility for this review rests with loan administration personnel. This review is supplemented with periodic examinations of both selected credits and the credit review process by the Company’s internal audit function and applicable regulatory agencies. The information from these reviews assists management in the timely identification of problems and potential problems and provides a basis for deciding whether the credit represents a probable loss or risk that should be recognized. A loan is considered impaired when, based on current information and events, it is probable that the scheduled payments of principal or interest will not be able to be collected when due according to the contractual terms of the loan agreement. Factors considered by management in determining impairment include payment status, collateral value and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record and the amount of the shortfall in relation to the principal and interest owed. Impairment is measured on a loan-by-loan basis for commercial and agricultural loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s obtainable market price or the fair value of the collateral if the loan is collateral dependent. Groups of loans with similar risk characteristics are collectively evaluated for impairment based on the group’s historical loss experience adjusted for changes in trends, conditions and other relevant factors that affect repayment of the loans. Accordingly, individual consumer and residential loans are not separately identified for impairment measurements, unless such loans are the subject of a restructuring agreement due to financial difficulties of the borrower. The general component covers non-impaired loans and is based on quantitative and qualitative factors. The loan portfolio is stratified into homogeneous groups of loans that possess similar loss characteristics and an appropriate loss ratio adjusted for qualitative factors is applied to the homogeneous pools of loans to estimate the incurred losses in the loan portfolio. Included in the Company’s loan portfolio are certain loans accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. These loans were written down at acquisition to an amount estimated to be collectible. As a result, certain ratios regarding the Company’s loan portfolio and credit quality cannot be used to compare the Company to peer companies or to compare the Company’s current credit quality to prior periods. The ratios particularly affected by accounting under ASC 310-30 include the allowance for loan losses as a percentage of loans, nonaccrual loans, and nonperforming assets, and nonaccrual loans and nonperforming loans as a percentage of total loans. The following tables present the credit risk profile of the Company’s loan portfolio (excluding loans in process and deferred loan fees) based on rating category and payment activity as of December 31, 2016 and June 30, 2016. These tables include purchased credit impaired loans, which are reported according to risk categorization after acquisition based on the Company’s standards for such classification: December 31, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $400,627 $49,590 $510,861 $49,423 $200,460 Watch 252 - 3,050 - - Special Mention - - - - - Substandard 3,518 192 5,518 139 1,185 Doubtful - - - - - Total $404,397 $49,782 $519,429 $49,562 $201,645 June 30, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $388,733 $55,202 $443,933 $46,341 $200,252 Watch 583 - 3,095 24 16 Special Mention - - - - - Substandard 3,658 388 5,024 176 1,777 Doubtful - - - - - Total $392,974 $55,590 $452,052 $46,541 $202,045 The above amounts include purchased credit impaired loans. At December 31, 2016, purchased credited impaired loans comprised $8.9 million of credits rated “Pass”; $3.0 million of credits rated “Watch”; none rated “Special Mention”; $2.9 million of credits rated “Substandard”; and none rated “Doubtful”. At June 30, 2016, purchased credit impaired loans accounted for $9.2 million of credits rated “Pass”; $3.0 million of credits rated “Watch”; none rated “Special Mention”; $3.1 million of credits rated “Substandard”; and none rated “Doubtful”. Credit Quality Indicators Watch Special Mention Substandard Doubtful Loans not meeting the criteria above that are analyzed individually as part of the above described process are considered to be Pass The following tables present the Company’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of December 31, 2016 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $2,675 $456 $710 $3,841 $400,556 $404,397 $- Construction - - - - 49,782 49,782 - Commercial 1,087 725 100 1,912 517,517 519,429 - Consumer loans 335 121 4 460 49,102 49,562 3 Commercial loans 120 222 92 434 201,211 201,645 82 Total loans $4,217 $1,524 $906 $6,647 $1,218,168 $1,224,815 $85 June 30, 2016 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $1,157 $457 $1,970 $3,584 $389,390 $392,974 $- Construction 165 - 207 372 55,218 55,590 - Commercial - - 33 33 452,019 452,052 - Consumer loans 169 99 39 307 46,234 46,541 7 Commercial loans 209 138 623 970 201,075 202,045 31 Total loans $1,700 $694 $2,872 $5,266 $1,143,936 $1,149,202 $38 At December 31, 2016, there was one purchased credit impaired loan with a net fair value of $4,000 that was greater than 90 days past due, and there were three at June 30, 2016 with a net fair value of $1.4 million. A loan is considered impaired, in accordance with the impairment accounting guidance (ASC 310-10-35-16), when based on current information and events, it is probable the Company will be unable to collect all amounts due from the borrower in accordance with the contractual terms of the loan. Impaired loans include nonperforming loans, as well as performing loans modified in troubled debt restructurings where concessions have been granted to borrowers experiencing financial difficulties. These concessions could include a reduction in the interest rate on the loan, payment extensions, forgiveness of principal, forbearance or other actions intended to maximize collection. The tables below present impaired loans (excluding loans in process and deferred loan fees) as of . These tables include purchased credit impaired loans. Purchased credit impaired loans are those for which it was deemed probable, at acquisition, that the Company would be unable to collect all contractually required payments receivable. In an instance where, subsequent to the acquisition, the Company determines it is probable, for a specific loan, that cash flows received will exceed the amount previously expected, the Company will recalculate the amount of accretable yield in order to recognize the improved cash flow expectation as additional interest income over the remaining life of the loan. These loans, however, will continue to be reported as impaired loans. In an instance where, subsequent to the acquisition, the Company determines it is probable, for a specific loan, that cash flows received will be less than the amount previously expected, the Company will allocate a specific allowance under the terms of ASC 310-10-35. December 31, 2016 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,107 $3,352 $- Construction real estate 1,407 1,641 - Commercial real estate 13,453 14,984 - Consumer loans 35 153 - Commercial loans 1,392 1,451 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $3,107 $3,352 $- Construction real estate $1,407 $1,641 $- Commercial real estate $13,453 $14,984 $- Consumer loans $35 $153 $- Commercial loans $1,392 $1,451 $- June 30, 2016 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,300 $3,558 $- Construction real estate 1,404 1,777 - Commercial real estate 11,681 13,326 - Consumer loans 36 36 - Commercial loans 1,461 1,532 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $3,300 $3,558 $- Construction real estate $1,404 $1,777 $- Commercial real estate $11,681 $13,326 $- Consumer loans $36 $36 $- Commercial loans $1,461 $1,532 $- The above amounts include purchased credit impaired loans. At , 201 , purchased credit impaired loans $ million of impaired loans without a specific valuation allowance; with a specific valuation allowance; and $ million of total impaired loans. At June 30, 201 , purchased credit impaired loans $ million of impaired loans without a specific valuation allowance; with a specific valuation allowance; and $ million of total impaired loans. The following tables present information regarding interest income recognized on impaired loans: For the three-month period ended December 31, 2016 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $2,836 $21 Construction Real Estate 1,378 37 Commercial Real Estate 9,772 186 Consumer Loans - - Commercial Loans 958 18 Total Loans $14,944 $262 For the three-month period ended December 31, 2015 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $3,115 $16 Construction Real Estate 1,629 25 Commercial Real Estate 10,575 390 Consumer Loans - - Commercial Loans 1,064 20 Total Loans $16,383 $451 For the six-month period ended December 31, 2016 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $2,889 $51 Construction Real Estate 1,387 71 Commercial Real Estate 9,807 367 Consumer Loans - - Commercial Loans 983 37 Total Loans $15,066 $526 For the six-month period ended December 31, 2015 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $3,170 $44 Construction Real Estate 1,706 62 Commercial Real Estate 10,614 574 Consumer Loans 70 2 Commercial Loans 1,071 39 Total Loans $16,631 $721 Interest income on impaired loans recognized on a cash basis in the three- and six-month periods ended December 31, 2016 and 2015, was immaterial. For the three- and six-month periods ended December 31, 2016, the amount of interest income recorded for impaired loans that represented a change in the present value of cash flows attributable to the passage of time was approximately $79,000 and $161,000, respectively, as compared to $48,000 and $97,000, respectively, for the three- and six-month periods ended December 31, 2015. The following table presents the Company’s nonaccrual loans at December 31 and June 30, 2016. The table excludes performing troubled debt restructurings. (dollars in thousands) December 31, 2016 June 30, 2016 Residential real estate $2,453 $2,676 Construction real estate 36 388 Commercial real estate 2,547 1,797 Consumer loans 123 160 Commercial loans 413 603 Total loans $5,572 $5,624 The above amounts include purchased credit impaired loans. At December 31 and June 30, 2016, these loans comprised $2.4 million and $2.6 million of nonaccrual loans, respectively. Included in certain loan categories in the impaired loans are troubled debt restructurings (TDRs), where economic concessions have been granted to borrowers who have experienced financial difficulties. These concessions typically result from our loss mitigation activities, and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance, or other actions. Certain TDRs are classified as nonperforming at the time of restructuring and typically are returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period of at least six months. When loans and leases are modified into a TDR, the Company evaluates any possible impairment similar to other impaired loans based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan or lease agreement, and uses the current fair value of the collateral, less selling costs, for collateral dependent loans. If the Company determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs, and unamortized premium or discount), impairment is recognized through an allowance estimate or a charge-off to the allowance. In periods subsequent to modification, the Company evaluates all TDRs, including those that have payment defaults, for possible impairment and recognizes impairment through the allowance. During the three- and six-month periods ended December 31, 2016 and 2015, certain loans were classified as TDRs. They are shown, segregated by class, in the table below: For the three-month periods ended December 31, 2016 December 31, 2015 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate - $- - $- Construction real estate - - - - Commercial real estate 1 366 - - Consumer loans 1 1 - - Commercial loans - - - - Total 2 $367 - $- For the six-month periods ended December 31, 2016 December 31, 2015 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate - $- 2 $49 Construction real estate 1 36 - - Commercial real estate 4 2,303 - - Consumer loans 2 1 - - Commercial loans 1 2 - - Total 8 $2,342 2 $49 Performing loans classified as TDRs and outstanding at December 31 and June 30, 2016, segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans. December 31, 2016 June 30, 2016 (dollars in thousands) Number of Recorded Number of Recorded modifications Investment modifications Investment Residential real estate 7 $487 7 $479 Construction real estate - - - - Commercial real estate 13 5,783 12 4,134 Consumer loans 1 35 1 36 Commercial loans 4 1,368 5 1,429 Total 25 $7,673 25 $6,078 |
Note 5_ Accounting For Certain
Note 5: Accounting For Certain Loans Acquired in A Transfer | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 5: Accounting For Certain Loans Acquired in A Transfer | Note 5: Accounting for Certain Loans Acquired in a Transfer The Company acquired loans in transfers during the fiscal years ended June 30, 2011 and June 30, 2015. At acquisition, certain transferred loans evidenced deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. Loans purchased with evidence of credit deterioration since origination and for which it is probable that all contractually required payments will not be collected are considered to be credit impaired. Evidence of credit quality deterioration as of the purchase date may include information such as past-due and nonaccrual status, borrower credit scores and recent loan to value percentages. Purchased credit-impaired loans are accounted for under the accounting guidance for loans and debt securities acquired with deteriorated credit quality (ASC 310-30) and initially measured at fair value, which includes estimated future credit losses expected to be incurred over the life of the loan. Accordingly, an allowance for credit losses related to these loans is not carried over and recorded at the acquisition date. Management estimated the cash flows expected to be collected at acquisition using our internal risk models, which incorporate the estimate of current key assumptions, such as default rates, severity and prepayment speeds. The carrying amount of those loans is included in the balance sheet amounts of loans receivable at December 31 and June 30, 2016. The amount of these loans is shown below: (dollars in thousands) December 31, 2016 June 30, 2016 Residential real estate $3,053 $3,254 Construction real estate 1,605 1,777 Commercial real estate 11,255 11,523 Consumer loans 118 - Commercial loans 955 1,103 Outstanding balance $16,986 $17,657 Carrying amount, net of fair value adjustment of $2,185 and $2,347 at December 31, 2016 and June 30, 2016, respectively $14,801 $15,310 Accretable yield, or income expected to be collected, is as follows: For the three-month period ended (dollars in thousands) December 31, 2016 December 31, 2015 Balance at beginning of period $640 $582 Additions - - Accretion (79) (255) Reclassification from nonaccretable difference 65 339 Disposals - - Balance at end of period $626 $666 For the six-month period ended (dollars in thousands) December 31, 2016 December 31, 2015 Balance at beginning of period $656 $547 Additions - - Accretion (161) (304) Reclassification from nonaccretable difference 131 423 Disposals - - Balance at end of period $626 $666 During the three- and six-month periods ended December 31, 2016 and 2015, the Company did not increase or reverse the allowance for loan losses related to these purchased credit impaired loans. |
Note 6_ Deposits
Note 6: Deposits | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 6: Deposits | Note 6: Deposits Deposits are summarized as follows: (dollars in thousands) December 31, 2016 June 30, 2016 Non-interest bearing accounts $136,024 $131,997 NOW accounts 436,175 396,104 Money market deposit accounts 88,208 78,155 Savings accounts 116,514 115,714 Certificates 434,895 398,723 Total Deposit Accounts $1,211,816 $1,120,693 |
Note 7_ Earnings Per Share
Note 7: Earnings Per Share | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 7: Earnings Per Share | Note 7: Earnings Per Share The following table sets forth the computation of basic and diluted earnings per share: Three months ended Six months ended December 31, December 31, 2016 2015 2016 2015 (dollars in thousands except per share data) Net income $4,176 $4,209 $7,885 $7,844 Dividend on preferred stock - 35 - 85 Net income available to common shareholders $4,176 $4,174 $7,885 $7,759 Average Common shares – outstanding basic 7,440,620 7,425,351 7,438,767 7,423,853 Stock options under treasury stock method 26,388 34,833 25,195 32,804 Average Common shares – outstanding diluted 7,467,008 7,460,184 7,463,962 7,456,657 Basic earnings per common share $0.56 $0.56 $1.06 $1.05 Diluted earnings per common share $0.56 $0.56 $1.06 $1.04 At December 31, 2016 and 2015, no options outstanding had an exercise price exceeding the market price. |
Note 8_ Income Taxes
Note 8: Income Taxes | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 8: Income Taxes | Note 8: Income Taxes The Company and its subsidiary files income tax returns in the U.S. Federal jurisdiction and various states. The Company is no longer subject to U.S. federal and state examinations by tax authorities for fiscal years before 2011. The Company recognized no interest or penalties related to income taxes. The CompanyÂ’s income tax provision is comprised of the following components: For the three-month period ended For the six-month periods ended (dollars in thousands) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Income taxes Current $386 $1,921 $2,859 $4,125 Deferred 1,349 (101) 234 (640) Total income tax provision $1,735 $1,820 $3,093 $3,485 The components of net deferred tax assets are summarized as follows: (dollars in thousands) December 31, 2016 June 30, 2016 Deferred tax assets: Provision for losses on loans $5,019 $4,760 Accrued compensation and benefits 717 885 Other-than-temporary impairment on available for sale securities 131 139 NOL carry forwards acquired 557 631 Minimum Tax Credit 130 130 Unrealized loss on other real estate 118 183 Unrealized loss on available for sale securities 373 - Other - - Total deferred tax assets 7,044 6,728 Deferred tax liabilities: Purchase accounting adjustments 1,060 1,132 Depreciation 1,958 1,781 FHLB stock dividends 184 194 Prepaid expenses 199 177 Unrealized gain on available for sale securities - 977 Other 142 82 Total deferred tax liabilities 3,543 4,343 Net deferred tax (liability) asset $3,501 $2,385 As of December 31 and June 30, 2016, the Company had approximately $1.8 million and $3.9 million in federal and state net operating loss carryforwards, which were acquired in the July 2009 acquisition of Southern Bank of Commerce, the February 2014 acquisition of Citizens State Bankshares of Bald Knob, Inc. and the August 2014 acquisition of Peoples Service Company. The amount reported is net of the IRC Sec. 382 limitation, or state equivalent, related to utilization of net operating loss carryforwards of acquired corporations. Unless otherwise utilized, the net operating losses will begin to expire in 2027. A reconciliation of income tax expense at the statutory rate to the CompanyÂ’s actual income tax is shown below: For the three-month period ended For the six-month periods ended (dollars in thousands) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Tax at statutory rate $2,069 $2,109 $3,842 $3,965 Increase (reduction) in taxes resulting from: Nontaxable municipal income (129) (145) (261) (279) State tax, net of Federal benefit 60 163 108 317 Cash surrender value of Bank-owned life insurance (74) (163) (147) (208) Tax credit benefits (93) (63) (187) (125) Other, net (98) (81) (262) (185) Actual provision $1,735 $1,820 $3,093 $3,485 Tax credit benefits are recognized under the flow-through method of accounting for investments in tax credits. |
Note 9_ 401(k) Retirement Plan
Note 9: 401(k) Retirement Plan | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 9: 401(k) Retirement Plan | Note 9: 401(k) Retirement Plan The Bank has a 401(k) retirement plan that covers substantially all eligible employees. The Bank makes “safe harbor” matching contributions of up to 4% of eligible compensation, depending upon the percentage of eligible pay deferred into the plan by the employee. Additional profit-sharing contributions of 4% of eligible salary were accrued for the plan year ended June 30, 2016, based on the financial performance for fiscal 2015. During the three- and six-month periods ended December 31, 2016, retirement plan expenses recognized for the Plan totaled approximately $205,000 and $448,000, respectively, as compared to $207,000 and $421,000, respectively, for the same period of the prior fiscal year. |
Note 10_ Corporate Obligated Fl
Note 10: Corporate Obligated Floating Rate Trust Preferred Securities | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 10: Corporate Obligated Floating Rate Trust Preferred Securities | Note 10: Subordinated Debt Southern Missouri Statutory Trust I issued $7.0 million of Floating Rate Capital Securities (the “Trust Preferred Securities”) with a liquidation value of $1,000 per share in March 2004. The securities are due in 30 years, redeemable after five years and bear interest at a floating rate based on LIBOR. At December 31, 2016, the current rate was 3.74%. The securities represent undivided beneficial interests in the trust, which was established by the Company for the purpose of issuing the securities. The Trust Preferred Securities were sold in a private transaction exempt from registration under the Securities Act of 1933, as amended (the “Act”) and have not been registered under the Act. The securities may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements. Southern Missouri Statutory Trust I used the proceeds from the sale of the Trust Preferred Securities to purchase Junior Subordinated Debentures of the Company. The Company used its net proceeds for working capital and investment in its subsidiaries. In connection with its October 2013 acquisition of Ozarks Legacy Community Financial, Inc. (OLCF), the Company assumed $3.1 million in floating rate junior subordinated debt securities. The debt securities had been issued in June 2005 by OLCF in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. The carrying value of the debt securities was approximately $2.6 million at December 31, 2016, and $2.6 million at June 30, 2016. In connection with its August 2014 acquisition of Peoples Service Company, Inc. (PSC), the Company assumed $6.5 million in floating rate junior subordinated debt securities. The debt securities had been issued in 2005 by PSC’s subsidiary bank holding company, Peoples Banking Company, in connection with the sale of trust preferred securities, bear interest at a floating rate based on LIBOR, are now redeemable at par, and mature in 2035. The carrying value of the debt securities was approximately $5.0 million at December 31, 2016, and $5.0 million at June 30, 2016. |
Note 11_ Fair Value Measurement
Note 11: Fair Value Measurements | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 11: Fair Value Measurements | Note 11: Fair Value Measurements ASC Topic 820, Fair Value Measurements Level 1 Level 2 Level 3 Recurring Measurements. Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $6,456 $- $6,456 $- State and political subdivisions 46,202 - 46,202 - Other securities 6,044 - 6,044 - Mortgage-backed GSE residential 73,414 - 73,414 - Fair Value Measurements at June 30, 2016, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $6,517 $- $6,517 $- State and political subdivisions 46,185 - 46,185 - Other securities 5,291 - 5,291 - Mortgage-backed GSE residential 71,231 - 71,231 - Following is a description of the valuation methodologies and inputs used for assets measured at fair value on a recurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets pursuant to the valuation hierarchy. There have been no significant changes in the valuation techniques during the period ended December 31, 2016. Available-for-sale Securities. During fiscal 2011, a pooled trust preferred security was reclassified from Level 2 to Level 3 due to the unavailability of third-party vendor valuations determined by observable inputs – either quoted prices for similar assets; quoted prices in active markets that are not active; or other inputs that are observable or can be corroborated by observable market data for substantially the full terms of the assets. During the six-months ended December 31, 2015, the third party vendor began providing valuations for this pooled trust preferred security again, so it was reclassified from Level 3 back to Level 2. The following table presents a reconciliation of activity for available for sale securities measured at fair value based on significant unobservable (Level 3) information for the three-and six-month periods ended December 31, 2016 and 2015: For the three months ended (dollars in thousands) December 31, 2016 December 31, 2015 Available-for-sale securities, beginning of period $- $- Total unrealized gain (loss) included in comprehensive income - - Transfer from Level 2 to Level 3 - - Available-for-sale securities, end of period $- $- For the six months ended (dollars in thousands) December 31, 2016 December 31, 2015 Available-for-sale securities, beginning of period $- $226 Total unrealized gain (loss) included in comprehensive income - 26 Transfer from Level 3 to Level 2 - (252) Available-for-sale securities, end of period $- $- Nonrecurring Measurements. The following tables present the fair value measurement of assets measured at fair value on a nonrecurring basis and the level within the ASC 820 fair value hierarchy in which the fair value measurements fell at December 31 and June 30, 2016: Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $3,349 $- $- $3,349 Fair Value Measurements at June 30, 2016, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $3,366 $- $- $3,366 The following table presents gains and (losses) recognized on assets measured on a non-recurring basis for the six-month periods ended December 31, 2016 and 2015: For the six months ended (dollars in thousands) December 31, 2016 December 31, 2015 Foreclosed and repossessed assets held for sale $(167) $(176) Total losses on assets measured on a non-recurring basis $(167) $(176) The following is a description of valuation methodologies and inputs used for assets measured at fair value on a nonrecurring basis and recognized in the accompanying consolidated balance sheets, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below. Foreclosed and Repossessed A ssets H eld for Sal e. are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets held for sale. The value of the asset is based on third party appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and management’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed assets held for sale are evaluated for additional impairment and are adjusted accordingly if is identified. Unobservable (Level 3) Inputs. The following table presents quantitative information about unobservable inputs used in recurring and nonrecurring Level 3 fair value measurements. (dollars in thousands) Fair value at December 31, 2016 Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $3,349 Third party appraisal Marketability discount 0.0% - 76.0% 33.4% (dollars in thousands) Fair value at Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $3,366 Third party appraisal Marketability discount 0.0% - 76.0% 35.6% Fair Value of Financial Instruments. December 31, 2016 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $30,367 $30,367 $- $- Interest-bearing time deposits 498 - 498 - Stock in FHLB 5,906 - 5,906 - Stock in Federal Reserve Bank of St. Louis 2,350 - 2,350 - Loans receivable, net 1,209,836 - - 1,213,884 Accrued interest receivable 6,791 - 6,791 - Financial liabilities Deposits 1,211,816 776,973 - 434,280 Securities sold under agreements to repurchase 22,542 - 22,542 - Advances from FHLB 107,502 83,700 24,068 - Accrued interest payable 763 - 763 - Subordinated debt 14,800 - - 10,473 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - June 30, 2016 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $22,554 $22,554 $- $- Interest-bearing time deposits 723 - 723 - Stock in FHLB 6,009 - 6,009 - Stock in Federal Reserve Bank of St. Louis 2,343 - 2,343 - Loans receivable, net 1,135,453 - - 1,136,723 Accrued interest receivable 5,512 - 5,512 - Financial liabilities Deposits 1,120,693 721,973 - 398,505 Securities sold under agreements to repurchase 27,085 - 27,085 - Advances from FHLB 110,216 69,750 41,442 - Accrued interest payable 720 - 720 - Subordinated debt 14,753 - - 11,992 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - The following methods and assumptions were used in estimating the fair values of financial instruments: Cash and cash equivalents and interest-bearing time deposits are valued at their carrying amounts, which approximates book value. Stock in FHLB and the Federal Reserve Bank of St. Louis is valued at cost, which approximates fair value. Fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for the same remaining maturities. Loans with similar characteristics are aggregated for purposes of the calculations. The carrying amounts of accrued interest approximate their fair values. The fair value of fixed-maturity time deposits is estimated using a discounted cash flow calculation that applies the rates currently offered for deposits of similar remaining maturities. Non-maturity deposits and securities sold under agreements are valued at their carrying value, which approximates fair value. Fair value of advances from the FHLB is estimated by discounting maturities using an estimate of the current market for similar instruments. The fair value of subordinated debt is estimated using rates currently available to the Company for debt with similar terms and maturities. The fair value of commitments to originate loans is estimated using the fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the present creditworthiness of the counterparties. For fixed-rate loan commitments, fair value also considers the difference between current levels of interest rates and committed rates. The fair value of letters of credit and lines of credit are based on fees currently charged for similar agreements or on the estimated cost to terminate or otherwise settle the obligations with the counterparties at the reporting date. |
Note 12_ Business Combinations
Note 12: Business Combinations | 3 Months Ended |
Dec. 31, 2016 | |
Notes | |
Note 12: Business Combinations | Note 12: Business Combinations On January 11, 2017, the Company announced the signing of an agreement and plan of merger whereby Tammcorp, Inc. (Tammcorp) will be acquired by the Company in a stock and cash transaction valued at approximately $23.4 million, (representing 140% of TammcorpÂ’s anticipated capital, as adjusted, at closing). Tammcorp is the 91% owner of Capaha Bank (Capaha). In connection with the acquisition, the minority shareholders of Capaha will be given the opportunity to exchange their shares of Capaha for shares of Tammcorp and to receive the merger consideration payable under the terms of the merger agreement. At September 30, 2016, Tammcorp held consolidated assets of $193.8 million, loans, net, of $157.0 million, and deposits of $165.4 million. The transaction is expected to close in the second quarter of calendar year 2017, subject to satisfaction of customary closing conditions, including regulatory and shareholder approvals, and consummation of the exchange transaction involving the minority shareholders of Capaha. The acquired financial institution is expected to be merged with and into Southern Bank simultaneously with the acquisition of Tammcorp in the second quarter of calendar year 2017. Through December 31, 2016, the Company incurred $100,000 of third-party acquisition-related costs. The expenses are included in noninterest expense in the CompanyÂ’s consolidated statement of income for the period ended December 31, 2016. |
Note 2_ Organization and Summ19
Note 2: Organization and Summary of Significant Accounting Policies: Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies | Organization. The Bank is primarily engaged in providing a full range of banking and financial services to individuals and corporate customers in its market areas. The Bank and Company are subject to competition from other financial institutions. The Bank and Company are subject to the regulation of certain federal and state agencies and undergo periodic examinations by those regulatory authorities. Basis of Financial Statement Presentation. |
Note 2_ Organization and Summ20
Note 2: Organization and Summary of Significant Accounting Policies: Principles of Consolidation Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Principles of Consolidation Policy | Principles of Consolidation. |
Note 2_ Organization and Summ21
Note 2: Organization and Summary of Significant Accounting Policies: Use of Estimates Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Use of Estimates Policy | Use of Estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, estimated fair values of purchased loans, other-than-temporary impairments (OTTI), and fair value of financial instruments. |
Note 2_ Organization and Summ22
Note 2: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents. |
Note 2_ Organization and Summ23
Note 2: Organization and Summary of Significant Accounting Policies: Interest-bearing Time Deposits (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Interest-bearing Time Deposits | Interest-bearing Time Deposits. |
Note 2_ Organization and Summ24
Note 2: Organization and Summary of Significant Accounting Policies: Marketable Securities, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Marketable Securities, Policy | Available for Sale Securities. Premiums and discounts on debt securities are amortized or accreted as adjustments to income over the estimated life of the security using the level yield method. Realized gains or losses on the sale of securities is based on the specific identification method. The fair value of securities is based on quoted market prices or dealer quotes. If a quoted market price is not available, fair value is estimated using quoted market prices for similar securities. The Company does not invest in collateralized mortgage obligations that are considered high risk. When the Company does not intend to sell a debt security, and it is more likely than not the Company will not have to sell the security before recovery of its cost basis, it recognizes the credit component of an other-than-temporary impairment of a debt security in earnings and the remaining portion in other comprehensive income. As a result of this guidance, the CompanyÂ’s consolidated balance sheet as of the dates presented reflects the full impairment (that is, the difference between the securityÂ’s amortized cost basis and fair value) on debt securities that the Company intends to sell or would more likely than not be required to sell before the expected recovery of the amortized cost basis. For available-for-sale debt securities that management has no intent to sell and believes that it more likely than not will not be required to sell prior to recovery, only the credit loss component of the impairment is recognized in earnings, while the noncredit loss is recognized in accumulated other comprehensive loss. The credit loss component recognized in earnings is identified as the amount of principal cash flows not expected to be received over the remaining term of the security as projected based on cash flow projections. |
Note 2_ Organization and Summ25
Note 2: Organization and Summary of Significant Accounting Policies: Federal Home Loan Bank and Federal Reserve Bank Stock (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Federal Home Loan Bank and Federal Reserve Bank Stock | Federal Home Loan Bank and Federal Reserve Bank Stock. |
Note 2_ Organization and Summ26
Note 2: Organization and Summary of Significant Accounting Policies: Loans Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Loans Policy | Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in management’s judgment, the collectability of interest or principal in the normal course of business is doubtful. The Company complies with regulatory guidance which indicates that loans should be placed in nonaccrual status when 90 days past due, unless the loan is both well-secured and in the process of collection. A loan that is “in the process of collection” may be subject to legal action or, in appropriate circumstances, through other collection efforts reasonably expected to result in repayment or restoration to current status in the near future. A loan is considered delinquent when a payment has not been made by the contractual due date. Interest income previously accrued but not collected at the date a loan is placed on nonaccrual status is reversed against interest income. Cash receipts on a nonaccrual loan are applied to principal and interest in accordance with its contractual terms unless full payment of principal is not expected, in which case cash receipts, whether designated as principal or interest, are applied as a reduction of the carrying value of the loan. A nonaccrual loan is generally returned to accrual status when principal and interest payments are current, full collectability of principal and interest is reasonably assured, and a consistent record of performance has been demonstrated. The allowance for losses on loans represents management’s best estimate of losses probable in the existing loan portfolio. The allowance for losses on loans is increased by the provision for losses on loans charged to expense and reduced by loans charged off, net of recoveries. Loans are charged off in the period deemed uncollectible, based on management’s analysis of expected cash flows (for non-collateral dependent loans) or collateral value (for collateral-dependent loans). Subsequent recoveries of loans previously charged off, if any, are credited to the allowance when received. The provision for losses on loans is determined based on management’s assessment of several factors: reviews and evaluations of specific loans, changes in the nature and volume of the loan portfolio, current economic conditions and the related impact on specific borrowers and industry groups, historical loan loss experience, the level of classified and nonperforming loans and the results of regulatory examinations. Loans are considered impaired if, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Depending on a particular loan’s circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loan’s effective interest rate, the loan’s observable market price, or the fair value of the collateral less estimated costs to sell if the loan is collateral dependent. Valuation allowances are established for collateral-dependent impaired loans for the difference between the loan amount and fair value of collateral less estimated selling costs. For impaired loans that are not collateral dependent, a valuation allowance is established for the difference between the loan amount and the present value of expected future cash flows discounted at the historical effective interest rate or the observable market price of the loan. Impairment losses are recognized through an increase in the required allowance for loan losses. Cash receipts on loans deemed impaired are recorded based on the loan’s separate status as a nonaccrual loan or an accrual status loan. Some loans are accounted for in accordance with ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality. For these loans, the Company initially recorded the loans at fair value, which includes estimated future losses expected to be incurred over the life of the loan. For these loans, we determined the contractual amount and timing of undiscounted principal and interest payments (the “undiscounted contractual cash flows”), and estimated the amount and timing of undiscounted expected principal and interest payments, including expected prepayments (the “undiscounted expected cash flows”). Under acquired impaired loan accounting, the difference between the undiscounted contractual cash flows and the undiscounted expected cash flows is the nonaccretable difference. The nonaccretable difference is an estimate of the loss exposure of principal and interest related to the purchased credit impaired loans, and the amount is subject to change over time based on the performance of the loans. The carrying value of purchased credit impaired loans is initially determined as the discounted expected cash flows. The excess of expected cash flows at acquisition over the initial fair value of the purchased credit impaired loans is referred to as the “accretable yield” and is recorded as interest income over the estimated life of the acquired loans using the level-yield method, if the timing and amount of the future cash flows is reasonably estimable. The carrying value of purchased credit impaired loans is reduced by payments received, both principal and interest, and increased by the portion of the accretable yield recognized as interest income. Subsequent to acquisition, the Company evaluates the purchased credit impaired loans on a quarterly basis. Increases in expected cash flows compared to those previously estimated increase the accretable yield and are recognized as interest income prospectively. Decreases in expected cash flows compared to those previously estimated decrease the accretable yield and may result in the establishment of an allowance for loan losses and a provision for loan losses. Purchased credit impaired loans are generally considered accruing and performing loans, as the loans accrete interest income over the estimated life of the loan when expected cash flows are reasonably estimable. Accordingly, purchased credit impaired loans that are contractually past due are still considered to be accruing and performing as long as there is an expectation that the estimated cash flows will be received. If the timing and amount of cash flows is not reasonably estimable, the loans may be classified as nonaccrual loans. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method over the contractual life of the loans. |
Note 2_ Organization and Summ27
Note 2: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Foreclosed Real Estate Policy | Foreclosed Real Estate. Valuations are periodically performed by management, and an allowance for losses is established by a charge to operations if the carrying value of a property exceeds its estimated fair value, less estimated selling costs. Loans to facilitate the sale of real estate acquired in foreclosure are discounted if made at less than market rates. Discounts are amortized over the fixed interest period of each loan using the interest method. |
Note 2_ Organization and Summ28
Note 2: Organization and Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Property, Plant and Equipment, Policy | Premises and Equipment. Depreciation is computed by use of straight-line and accelerated methods over the estimated useful lives of the assets. Estimated lives are generally seven to forty years for premises, three to seven years for equipment, and three years for software. |
Note 2_ Organization and Summ29
Note 2: Organization and Summary of Significant Accounting Policies: Bank Owned Life Insurance Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Bank Owned Life Insurance Policy | Bank Owned Life Insurance. |
Note 2_ Organization and Summ30
Note 2: Organization and Summary of Significant Accounting Policies: Goodwill Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Goodwill Policy | Goodwill. The CompanyÂ’s goodwill is evaluated annually for impairment or more frequently if impairment indicators are present. A qualitative assessment is performed to determine whether the existence of events or circumstances leads to a determination that it is more likely than not the fair value is less than the carrying amount, including goodwill. If, based on the evaluation, it is determined to be more likely than not that the fair value is less than the carrying value, then goodwill is tested further for impairment. If the implied fair value of goodwill is lower than its carrying amount, a goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill value are not recognized in the financial statements. |
Note 2_ Organization and Summ31
Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Intangible Assets, Finite-Lived, Policy | Intangible Assets. The CompanyÂ’s intangible assets at , 201 included gross core deposit intangibles of $ .9 million with $ accumulated amortization, gross other identifiable intangibles of $3.8 million with accumulated amortization of $3. million , and mortgage servicing rights of $ ,000. At June 30, 201 , the CompanyÂ’s intangible assets included gross core deposit intangibles of $ with $ accumulated amortization, and gross other identifiable intangibles of $3.8 million with accumulated amortization of $3. million . The CompanyÂ’s core deposit intangible assets are being amortized using the straight line method , over periods ranging from five to years , with amortization expense expected to be approximately $ in fiscal 201 , $ in fiscal 201 , $ ,000 in fiscal 201 , $ ,000 in fiscal 20 , |
Note 2_ Organization and Summ32
Note 2: Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Income Tax, Policy | Income Taxes. Deferred income tax expense results from changes in deferred tax assets and liabilities between periods. Deferred tax assets are recognized if it is more likely than not, based on the technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more-likely-than-not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more-likely-than-not recognition threshold considers the facts, circumstances, and information available at the reporting date and is subject to managementÂ’s judgment. Deferred tax assets are reduced by a valuation allowance if, based on the weight of evidence available, it is more likely than not that some portion or all of a deferred tax asset will not be realized. The Company recognizes interest and penalties on income taxes as a component of income tax expense. The Company files consolidated income tax returns with its subsidiaries. |
Note 2_ Organization and Summ33
Note 2: Organization and Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Share-based Compensation, Option and Incentive Plans Policy | Incentive Plan. |
Note 2_ Organization and Summ34
Note 2: Organization and Summary of Significant Accounting Policies: Outside Directors Retirement Plan Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Outside Directors Retirement Plan Policy | Outside DirectorsÂ’ Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participantÂ’s beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. |
Note 2_ Organization and Summ35
Note 2: Organization and Summary of Significant Accounting Policies: Stock Options Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Stock Options Policy | Stock Options. |
Note 2_ Organization and Summ36
Note 2: Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Earnings Per Share, Policy | Earnings Per Share. |
Note 2_ Organization and Summ37
Note 2: Organization and Summary of Significant Accounting Policies: Comprehensive Income, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Comprehensive Income, Policy | Comprehensive Income. |
Note 2_ Organization and Summ38
Note 2: Organization and Summary of Significant Accounting Policies: Fair Value Transfer Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Fair Value Transfer Policy | Transfers Between Fair Value Hierarchy Levels. |
Note 2_ Organization and Summ39
Note 2: Organization and Summary of Significant Accounting Policies: New Accounting Pronouncements (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
New Accounting Pronouncements | The following paragraphs summarize the impact of new accounting pronouncements: In January 2017, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2017-04, Intangibles - Goodwill and Other (Topic 350), Simplifying the Test for Goodwill Impairment. The objective of the Update is to expand the simplification of the subsequent measurement of goodwill to include public business entities and not-for-profit entities. The simplification eliminates Step 2 from the goodwill impairment test, which measures a goodwill impairment loss by comparing the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. For public companies that are U.S. Securities and Exchange Commission (SEC) filers, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods, and should be applied on a prospective basis. Early adoption is permitted for interim or annual goodwill impairment tests performed on testing dates after January 1, 2017. In October 2016, the FASB issued ASU 2016-16, Income Taxes (Topic 740). The Update provides guidance to improve the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Under the new guidance, companies should recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Intellectual property and property, plant, and equipment, are two common examples of assets included in the scope of this Update. For public companies, the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. In August 2016, the FASB issued ASU 2016-15, Statement of Cash Flows (Topic 230), Classification of Certain Cash Receipts and Cash payments. The Update provides guidance on how certain cash receipts and payments are presented and classified in the statement of cash flows, with the objective of reducing the diversity in practice. The Update addresses eight specific cash flow issues. F or public companies, the ASU is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years, and should be applied retrospectively. In June 2016, the FASB issued ASU 2016-13, Financial Instruments – Credit Losses (Topic 326). The Update amends guidance on reporting credit losses for assets held at amortized cost basis and available for sale debt securities. For assets held at amortized cost basis, Topic 326 eliminates the probable initial recognition threshold in current GAAP and, instead, requires an entity to reflect its current estimate of all expected credit losses. The update affects loans, debt securities, trade receivables, net investments in leases, off balance sheet credit exposures, and any other financial assets not excluded from the scope that have the contractual right to receive cash. For public companies, the ASU is effective for fiscal years beginning after December 15, 2019, including interim periods within those fiscal years. Management is evaluating the impact that this new guidance will have on the Company’s consolidated financial statements. In March 2016, the FASB issued ASU 2016-09, Compensation - Stock Compensation (Topic 718), Improvements to Employee Share-Based Payment Accounting. The objective of the Update is to simplify the accounting for share-based payment transactions, including the accounting for income taxes and forfeitures, statutory tax withholding requirements, classification of awards as either equity or liabilities, and classification on the statement of cash flows. For public companies, the ASU is effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. In February 2016, the FASB issued ASU 2016-02, “Leases,” to revise the accounting related to lease accounting. Under the new guidance, a lessee is required to record a right-of-use (ROU) asset and a lease liability on the balance sheet for all leases with terms longer than 12 months. The ASU is effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years. Adoption of the standard requires the use of a modified retrospective transition approach for all periods presented at the time of adoption. Management is evaluating the impact of the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, “Recognition and Measurement of Financial Assets and Financial Liabilities,” to generally require equity investments be measured at fair value with changes in fair value recognized in net income, simplify the impairment assessment of equity investments without readily-determinable fair value, and change disclosure and presentation requirements regarding financial instruments and other comprehensive income, and clarify that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to available-for-sale securities in combination with the entity’s other deferred tax assets. For public entities, the guidance is effective for fiscal years beginning after December 15, 2017, including interim periods within those fiscal years. Management is evaluating the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (Topic 606). The update provides a five-step revenue recognition model for all revenue arising from contracts with customers and affects all entities that enter into contracts to provide goods or services to their customers (unless the contracts are included in the scope of other standards). The guidance requires an entity to recognize the revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. For public entities, the guidance is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period, and must be applied either retrospectively or using the modified retrospective approach. In April 2015, the FASB voted to propose a one-year deferral of the effective date of ASU 2014-09 and issued an exposure draft. Management is evaluating the new guidance, but does not expect the adoption of this guidance to have a material impact on the Company’s consolidated financial statements. Early adoption would be permitted, but not before the original public entity effective date. |
Note 3_ Securities_ Repurchase
Note 3: Securities: Repurchase Agreements, Collateral, Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Repurchase Agreements, Collateral, Policy | The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $112.4 million at December 31, 2016 and $106.7 million at June 30, 2016. The securities pledged consist of marketable securities, including $6.4 million and $5.5 million of U.S. Government and Federal Agency Obligations, $52.5 million and $52.2 million of Mortgage-Backed Securities, $14.1 million and $13.6 million of Collateralized Mortgage Obligations, $38.8 million and $34.8 million of State and Political Subdivisions Obligations, and $600,000 and $600,000 of Other Securities at December 31, 2016 and June 30, 2016, respectively. |
Note 3_ Securities_ Other Secur
Note 3: Securities: Other Securities Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Other Securities Policy | Other securities. At December 31, 2016, there were three pooled trust preferred securities with an estimated fair value of $753 ,000 and unrealized losses of $681 ,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. Rules adopted by the federal banking agencies in December 2013 to implement Section 619 of the Dodd-Frank Act (the “Volcker Rule”) generally prohibit banking entities from engaging in proprietary trading and from investing in, sponsoring, or having certain relationships with a hedge fund or private equity fund. All pooled trust preferred securities owned by the Company were included in a January 2014 listing of securities which the agencies considered to be grandfathered with regard to these prohibitions; as such, banking entities are permitted to retain their interest in these securities, provided the interest was acquired on or before December 10, 2013, unless acquired pursuant to a merger or acquisition. The December 31, 2016, cash flow analysis for these three securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these three securities included annualized prepayments of 1.3 to 1.7 percent; recoveries of 31 percent on currently deferred issuers within the next two years; new deferrals of 47 to 50 basis points annually; and eventual recoveries of eight to nine percent of new deferrals. One of these three securities has continued to receive cash interest payments in full since our purchase. The second of the three securities received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed interest payments during fiscal 2014. The third security received PIK for a period of time following the recession and financial crisis which began in 2008, but resumed interest payments during the second quarter of fiscal 2017. Our cash flow analysis indicates that interest payments are expected to continue for these three securities, and that all contracted principal and interest will be received. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2016. At December 31, 2008, analysis of a fourth pooled trust preferred security indicated other-than-temporary impairment (OTTI). The loss recognized at that time reduced the amortized cost basis for the security, and as of December 31, 2016, the estimated fair value of the security exceeds the new, lower amortized cost basis. The Company does not believe any other individual unrealized loss as of December 31, 2016, represents OTTI. However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any additional OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the other-than-temporary impairment is identified. |
Note 3_ Securities_ Credit Loss
Note 3: Securities: Credit Losses Recognized on Investments Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Credit Losses Recognized on Investments Policy | Credit losses recognized on investments. |
Note 4_ Loans and Allowance F43
Note 4: Loans and Allowance For Loan Losses: Residential Mortgage Lending Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Residential Mortgage Lending Policy | Residential Mortgage Lending. The Company actively originates loans for the acquisition or refinance of one- to four-family residences. This category includes both fixed-rate and adjustable-rate mortgage (“ARM”) loans amortizing over periods of up to 30 years, and the properties securing such loans may be owner-occupied or non-owner-occupied. Single-family residential loans do not generally exceed 90% of the lower of the appraised value or purchase price of the secured property. Substantially all of the one- to four-family residential mortgage originations in the Company’s portfolio are located within the Company’s primary lending area. The Company also originates loans secured by multi-family residential properties that are often located outside the Company’s primary lending area but made to borrowers who operate within the primary market area. The majority of the multi-family residential loans that are originated by the Bank are amortized over periods generally up to 25 years, with balloon maturities typically up to ten years. Both fixed and adjustable interest rates are offered and it is typical for the Company to include an interest rate “floor” and “ceiling” in the loan agreement. Generally, multi-family residential loans do not exceed 85% of the lower of the appraised value or purchase price of the secured property. |
Note 4_ Loans and Allowance F44
Note 4: Loans and Allowance For Loan Losses: Commercial Real Estate Lending Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Commercial Real Estate Lending Policy | Commercial Real Estate Lending. The Company actively originates loans secured by commercial real estate including land (improved, unimproved, and farmland), strip shopping centers, retail establishments and other businesses. These properties are typically owned and operated by borrowers headquartered within the Company’s primary lending area, however, the property may be located outside our primary lending area. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 25 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity of up to seven years, with a balloon payment due at maturity. Alternatively, for some loans, the interest rate adjusts at least annually after an initial period up to seven years. The Company typically includes an interest rate “floor” in the loan agreement. Generally, improved commercial real estate loan amounts do not exceed 80% of the lower of the appraised value or the purchase price of the secured property. Agricultural real estate terms offered differ slightly, with amortization schedules of up to 25 years with an 80% loan-to-value ratio, or 30 years with a 75% loan-to-value ratio. |
Note 4_ Loans and Allowance F45
Note 4: Loans and Allowance For Loan Losses: Construction Lending Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Construction Lending Policy | Construction Lending. The Company originates real estate loans secured by property or land that is under construction or development. Construction loans originated by the Company are generally secured by mortgage loans for the construction of owner occupied residential real estate or to finance speculative construction secured by residential real estate, land development, or owner-operated or non-owner occupied commercial real estate. During construction, these loans typically require monthly interest-only payments and have maturities ranging from six to twelve months. Once construction is completed, loans may be converted to permanent status with monthly payments using amortization schedules of up to 30 years on residential and generally up to 20 years on commercial real estate. While the Company typically utilizes maturity periods ranging from 6 to 12 months to closely monitor the inherent risks associated with construction loans for these loans, weather conditions, change orders, availability of materials and/or labor, and other factors may contribute to the lengthening of a project, thus necessitating the need to renew the construction loan at the balloon maturity. Such extensions are typically executed in incremental three month periods to facilitate project completion. The CompanyÂ’s average term of construction loans is approximately eight months. During construction, loans typically require monthly interest only payments which may allow the Company an opportunity to monitor for early signs of financial difficulty should the borrower fail to make a required monthly payment. Additionally, during the construction phase, the Company typically obtains interim inspections completed by an independent third party. This monitoring further allows the Company opportunity to assess risk. At December 31, 2016, construction loans outstanding included 52 loans, totaling $10.2 million , for which a modification had been agreed to. At June 30, 2016, construction loans outstanding included 42 loans, totaling $10.3 million , for which a modification had been agreed to. All modifications were solely for the purpose of extending the maturity date due to conditions described above. None of these modifications were executed due to financial difficulty on the part of the borrower and, therefore, were not accounted for as TDRs . |
Note 4_ Loans and Allowance F46
Note 4: Loans and Allowance For Loan Losses: Consumer Lending Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Consumer Lending Policy | Consumer Lending . The Company offers a variety of secured consumer loans, including home equity, direct and indirect automobile loans, second mortgages, mobile home loans and loans secured by deposits. The Company originates substantially all of its consumer loans in its primary lending area. Usually, consumer loans are originated with fixed rates for terms of up to five years, with the exception of home equity lines of credit, which are variable, tied to the prime rate of interest and are for a period of ten years. Home equity lines of credit (HELOCs) are secured with a deed of trust and are issued up to 100% of the appraised or assessed value of the property securing the line of credit, less the outstanding balance on the first mortgage and are typically issued for a term of ten years. Interest rates on the HELOCs are generally adjustable. Interest rates are based upon the loan-to-value ratio of the property with better rates given to borrowers with more equity. Automobile loans originated by the Company include both direct loans and a smaller amount of loans originated by auto dealers. The Company generally pays a negotiated fee back to the dealer for indirect loans. Typically, automobile loans are made for terms of up to 60 months for new and used vehicles. Loans secured by automobiles have fixed rates and are generally made in amounts up to 100% of the purchase price of the vehicle. |
Note 4_ Loans and Allowance F47
Note 4: Loans and Allowance For Loan Losses: Commercial Business Lending Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Commercial Business Lending Policy | Commercial Business Lending . The CompanyÂ’s commercial business lending activities encompass loans with a variety of purposes and security, including loans to finance accounts receivable, inventory, equipment and operating lines of credit, including agricultural production and equipment loans. The Company offers both fixed and adjustable rate commercial business loans. Generally, commercial loans secured by fixed assets are amortized over periods up to five years, while commercial operating lines of credit or agricultural production lines are generally for a one year period. |
Note 11_ Fair Value Measureme48
Note 11: Fair Value Measurements: Foreclosed and Repossessed Assets Held for Sale Policy (Policies) | 3 Months Ended |
Dec. 31, 2016 | |
Policies | |
Foreclosed and Repossessed Assets Held for Sale Policy | Foreclosed and Repossessed A ssets H eld for Sal e. are valued at the time the loan is foreclosed upon and the asset is transferred to foreclosed assets held for sale. The value of the asset is based on third party appraisals, less estimated costs to sell and appropriate discounts, if any. The appraisals are generally discounted based on current and expected market conditions that may impact the sale or value of the asset and managementÂ’s knowledge and experience with similar assets. Such discounts typically may be significant and result in a Level 3 classification of the inputs for determining fair value of these assets. Foreclosed assets held for sale are evaluated for additional impairment and are adjusted accordingly if is identified. |
Note 3_ Securities_ Schedule of
Note 3: Securities: Schedule of Available for Sale Securities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Available for Sale Securities | December 31, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $6,470 $22 $(36) $6,456 State and political subdivisions 45,963 819 (580) 46,202 Other securities 6,572 161 (689) 6,044 Mortgage-backed: GSE residential 74,120 110 (816) 73,414 Total investments and mortgage-backed securities $133,125 $1,112 $(2,121) $132,116 June 30, 2016 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Investment and mortgage backed securities: U.S. government-sponsored enterprises (GSEs) $6,460 $57 $- $6,517 State and political subdivisions 44,368 1,820 (3) 46,185 Other securities 5,861 206 (776) 5,291 Mortgage-backed GSE residential 69,893 1,342 (4) 71,231 Total investments and mortgage-backed securities $126,582 $3,425 $(783) $129,224 |
Note 3_ Securities_ Contractual
Note 3: Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Contractual Obligation, Fiscal Year Maturity Schedule | December 31, 2016 Amortized Estimated (dollars in thousands) Cost Fair Value Within one year $607 $610 After one year but less than five years 11,530 11,577 After five years but less than ten years 20,986 21,072 After ten years 25,882 25,443 Total investment securities 59,005 58,702 Mortgage-backed securities 74,120 73,414 Total investments and mortgage-backed securities $133,125 $132,116 |
Note 3_ Securities_ Available-f
Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | December 31, 2016 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $3,460 $36 $- $- $3,460 $36 Obligations of state and political subdivisions 18,946 580 - - 18,946 580 Other securities - - 1,147 689 1,147 689 Mortgage-backed securities 54,732 806 343 10 55,075 816 Total investments and mortgage-backed securities $77,138 $1,422 $1,490 $699 $78,628 $2,121 June 30, 2016 Less than 12 months 12 months or more Total Fair Unrealized Fair Unrealized Fair Unrealized Value Losses Value Losses Value Losses (dollars in thousands) Obligations of state and political subdivisions $720 $3 $- $- $720 $3 Other securities - - 1,080 776 1,080 776 Mortgage-backed securities 2,912 4 - - 2,912 4 Total investments and mortgage-backed securities $3,632 $7 $1,080 $776 $4,712 $783 |
Note 3_ Securities_ Other than
Note 3: Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings | Accumulated Credit Losses Six-Month Period Ended (dollars in thousands) December 31, 2016 2015 Credit losses on debt securities held Beginning of period $352 $365 Additions related to OTTI losses not previously recognized - - Reductions due to sales - - Reductions due to change in intent or likelihood of sale - - Additions related to increases in previously-recognized OTTI losses - - Reductions due to increases in expected cash flows (4) (5) End of period $348 $360 |
Note 4_ Loans and Allowance F53
Note 4: Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Classes of loans are summarized as follows: (dollars in thousands) December 31, 2016 June 30, 2016 Real Estate Loans: Residential $404,397 $392,974 Construction 61,680 77,369 Commercial 519,429 452,052 Consumer loans 49,562 46,541 Commercial loans 201,645 202,045 1,236,713 1,170,981 Loans in process (11,898) (21,779) Deferred loan fees, net 13 42 Allowance for loan losses (14,992) (13,791) Total loans $1,209,836 $1,135,453 |
Note 4_ Loans and Allowance F54
Note 4: Loans and Allowance For Loan Losses: Schedule of balance in the allowance for loan losses and recorded investment (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of balance in the allowance for loan losses and recorded investment | At period end and for the six months ended December 31, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,247 $1,091 $5,711 $738 $3,004 $13,791 Provision charged to expense 316 (170) 1,124 52 259 1,581 Losses charged off (97) (31) - (39) (270) (437) Recoveries 6 1 16 5 29 57 Balance, end of period $3,472 $891 $6,851 $756 $3,022 $14,992 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,472 $891 $6,851 $756 $3,022 $14,992 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $401,588 $48,412 $509,705 $49,562 $200,748 $1,210,015 Ending Balance: loans acquired with deteriorated credit quality $2,809 $1,370 $9,724 $- $897 $14,800 For the three months ended December 31, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,153 $1,121 $6,370 $738 $3,074 $14,456 Provision charged to expense 316 (200) 465 53 22 656 Losses charged off - (31) - (35) (101) (167) Recoveries 3 1 16 - 27 47 Balance, end of period $3,472 $891 $6,851 $756 $3,022 $14,992 At period end and for the six months ended December 31, 2015 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $2,819 $899 $4,956 $758 $2,866 $12,298 Provision charged to expense 475 147 324 60 108 1,114 Losses charged off (90) - (77) (35) (100) (302) Recoveries 3 - 46 3 10 62 Balance, end of period $3,207 $1,046 $5,249 $786 $2,884 $13,172 Ending Balance: individually evaluated for impairment $- $- $- $- $144 $144 Ending Balance: collectively evaluated for impairment $3,207 $1,046 $5,249 $786 $2,740 $13,028 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- For the three months ended December 31, 2015 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $3,295 $865 $5,049 $750 $2,853 $12,812 Provision charged to expense (64) 181 210 59 110 496 Losses charged off (26) - (56) (25) (88) (195) Recoveries 2 - 46 2 9 59 Balance, end of period $3,207 $1,046 $5,249 $786 $2,884 $13,172 At June 30, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, end of period $3,247 $1,091 $5,711 $738 $3,004 $13,791 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $3,247 $1,091 $5,711 $738 $3,004 $13,791 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $389,978 $54,187 $442,173 $46,541 $201,013 $1,133,892 Ending Balance: loans acquired with deteriorated credit quality $2,996 $1,403 $9,879 $- $1,032 $15,310 |
Note 4_ Loans and Allowance F55
Note 4: Loans and Allowance For Loan Losses: Financing Receivable Credit Quality Indicators (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Financing Receivable Credit Quality Indicators | December 31, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $400,627 $49,590 $510,861 $49,423 $200,460 Watch 252 - 3,050 - - Special Mention - - - - - Substandard 3,518 192 5,518 139 1,185 Doubtful - - - - - Total $404,397 $49,782 $519,429 $49,562 $201,645 June 30, 2016 Residential Construction Commercial (dollars in thousands) Real Estate Real Estate Real Estate Consumer Commercial Pass $388,733 $55,202 $443,933 $46,341 $200,252 Watch 583 - 3,095 24 16 Special Mention - - - - - Substandard 3,658 388 5,024 176 1,777 Doubtful - - - - - Total $392,974 $55,590 $452,052 $46,541 $202,045 |
Note 4_ Loans and Allowance F56
Note 4: Loans and Allowance For Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Loan Portfolio Aging Analysis | The following tables present the CompanyÂ’s loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of December 31, 2016 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $2,675 $456 $710 $3,841 $400,556 $404,397 $- Construction - - - - 49,782 49,782 - Commercial 1,087 725 100 1,912 517,517 519,429 - Consumer loans 335 121 4 460 49,102 49,562 3 Commercial loans 120 222 92 434 201,211 201,645 82 Total loans $4,217 $1,524 $906 $6,647 $1,218,168 $1,224,815 $85 June 30, 2016 Greater Than Greater Than 90 30-59 Days 60-89 Days 90 Days Total Total Loans Days Past Due (dollars in thousands) Past Due Past Due Past Due Past Due Current Receivable and Accruing Real Estate Loans: Residential $1,157 $457 $1,970 $3,584 $389,390 $392,974 $- Construction 165 - 207 372 55,218 55,590 - Commercial - - 33 33 452,019 452,052 - Consumer loans 169 99 39 307 46,234 46,541 7 Commercial loans 209 138 623 970 201,075 202,045 31 Total loans $1,700 $694 $2,872 $5,266 $1,143,936 $1,149,202 $38 |
Note 4_ Loans and Allowance F57
Note 4: Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Impaired Loans | December 31, 2016 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,107 $3,352 $- Construction real estate 1,407 1,641 - Commercial real estate 13,453 14,984 - Consumer loans 35 153 - Commercial loans 1,392 1,451 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $3,107 $3,352 $- Construction real estate $1,407 $1,641 $- Commercial real estate $13,453 $14,984 $- Consumer loans $35 $153 $- Commercial loans $1,392 $1,451 $- June 30, 2016 Recorded Unpaid Principal Specific (dollars in thousands) Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,300 $3,558 $- Construction real estate 1,404 1,777 - Commercial real estate 11,681 13,326 - Consumer loans 36 36 - Commercial loans 1,461 1,532 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $3,300 $3,558 $- Construction real estate $1,404 $1,777 $- Commercial real estate $11,681 $13,326 $- Consumer loans $36 $36 $- Commercial loans $1,461 $1,532 $- |
Note 4_ Loans and Allowance F58
Note 4: Loans and Allowance For Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Interest Income Recognized on Impaired Loans | For the three-month period ended December 31, 2016 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $2,836 $21 Construction Real Estate 1,378 37 Commercial Real Estate 9,772 186 Consumer Loans - - Commercial Loans 958 18 Total Loans $14,944 $262 For the three-month period ended December 31, 2015 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $3,115 $16 Construction Real Estate 1,629 25 Commercial Real Estate 10,575 390 Consumer Loans - - Commercial Loans 1,064 20 Total Loans $16,383 $451 For the six-month period ended December 31, 2016 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $2,889 $51 Construction Real Estate 1,387 71 Commercial Real Estate 9,807 367 Consumer Loans - - Commercial Loans 983 37 Total Loans $15,066 $526 For the six-month period ended December 31, 2015 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $3,170 $44 Construction Real Estate 1,706 62 Commercial Real Estate 10,614 574 Consumer Loans 70 2 Commercial Loans 1,071 39 Total Loans $16,631 $721 |
Note 4_ Loans and Allowance F59
Note 4: Loans and Allowance For Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Financing Receivables, Non Accrual Status | (dollars in thousands) December 31, 2016 June 30, 2016 Residential real estate $2,453 $2,676 Construction real estate 36 388 Commercial real estate 2,547 1,797 Consumer loans 123 160 Commercial loans 413 603 Total loans $5,572 $5,624 |
Note 4_ Loans and Allowance F60
Note 4: Loans and Allowance For Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Debtor Troubled Debt Restructuring, Current Period | For the three-month periods ended December 31, 2016 December 31, 2015 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate - $- - $- Construction real estate - - - - Commercial real estate 1 366 - - Consumer loans 1 1 - - Commercial loans - - - - Total 2 $367 - $- For the six-month periods ended December 31, 2016 December 31, 2015 Number of Recorded Number of Recorded (dollars in thousands) modifications Investment modifications Investment Residential real estate - $- 2 $49 Construction real estate 1 36 - - Commercial real estate 4 2,303 - - Consumer loans 2 1 - - Commercial loans 1 2 - - Total 8 $2,342 2 $49 |
Note 4_ Loans and Allowance F61
Note 4: Loans and Allowance For Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Performing Loans Classified as Troubled Debt Restructuring Loans | December 31, 2016 June 30, 2016 (dollars in thousands) Number of Recorded Number of Recorded modifications Investment modifications Investment Residential real estate 7 $487 7 $479 Construction real estate - - - - Commercial real estate 13 5,783 12 4,134 Consumer loans 1 35 1 36 Commercial loans 4 1,368 5 1,429 Total 25 $7,673 25 $6,078 |
Note 5_ Accounting For Certai62
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans with Credit Deterioration (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Acquired Loans with Credit Deterioration | (dollars in thousands) December 31, 2016 June 30, 2016 Residential real estate $3,053 $3,254 Construction real estate 1,605 1,777 Commercial real estate 11,255 11,523 Consumer loans 118 - Commercial loans 955 1,103 Outstanding balance $16,986 $17,657 Carrying amount, net of fair value adjustment of $2,185 and $2,347 at December 31, 2016 and June 30, 2016, respectively $14,801 $15,310 |
Note 5_ Accounting For Certai63
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans in Transfer Accretable Yield (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Acquired Loans in Transfer Accretable Yield | For the three-month period ended (dollars in thousands) December 31, 2016 December 31, 2015 Balance at beginning of period $640 $582 Additions - - Accretion (79) (255) Reclassification from nonaccretable difference 65 339 Disposals - - Balance at end of period $626 $666 For the six-month period ended (dollars in thousands) December 31, 2016 December 31, 2015 Balance at beginning of period $656 $547 Additions - - Accretion (161) (304) Reclassification from nonaccretable difference 131 423 Disposals - - Balance at end of period $626 $666 |
Note 6_ Deposits_ Schedule of D
Note 6: Deposits: Schedule of Deposit Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Deposit Liabilities | (dollars in thousands) December 31, 2016 June 30, 2016 Non-interest bearing accounts $136,024 $131,997 NOW accounts 436,175 396,104 Money market deposit accounts 88,208 78,155 Savings accounts 116,514 115,714 Certificates 434,895 398,723 Total Deposit Accounts $1,211,816 $1,120,693 |
Note 8_ Income Taxes_ Schedule
Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Effective Income Tax Rate Reconciliation | For the three-month period ended For the six-month periods ended (dollars in thousands) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Income taxes Current $386 $1,921 $2,859 $4,125 Deferred 1,349 (101) 234 (640) Total income tax provision $1,735 $1,820 $3,093 $3,485 |
Note 8_ Income Taxes_ Schedul66
Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | (dollars in thousands) December 31, 2016 June 30, 2016 Deferred tax assets: Provision for losses on loans $5,019 $4,760 Accrued compensation and benefits 717 885 Other-than-temporary impairment on available for sale securities 131 139 NOL carry forwards acquired 557 631 Minimum Tax Credit 130 130 Unrealized loss on other real estate 118 183 Unrealized loss on available for sale securities 373 - Other - - Total deferred tax assets 7,044 6,728 Deferred tax liabilities: Purchase accounting adjustments 1,060 1,132 Depreciation 1,958 1,781 FHLB stock dividends 184 194 Prepaid expenses 199 177 Unrealized gain on available for sale securities - 977 Other 142 82 Total deferred tax liabilities 3,543 4,343 Net deferred tax (liability) asset $3,501 $2,385 |
Note 8_ Income Taxes_ Schedul67
Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax | For the three-month period ended For the six-month periods ended (dollars in thousands) December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Tax at statutory rate $2,069 $2,109 $3,842 $3,965 Increase (reduction) in taxes resulting from: Nontaxable municipal income (129) (145) (261) (279) State tax, net of Federal benefit 60 163 108 317 Cash surrender value of Bank-owned life insurance (74) (163) (147) (208) Tax credit benefits (93) (63) (187) (125) Other, net (98) (81) (262) (185) Actual provision $1,735 $1,820 $3,093 $3,485 |
Note 11_ Fair Value Measureme68
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $6,456 $- $6,456 $- State and political subdivisions 46,202 - 46,202 - Other securities 6,044 - 6,044 - Mortgage-backed GSE residential 73,414 - 73,414 - Fair Value Measurements at June 30, 2016, Using: Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $6,517 $- $6,517 $- State and political subdivisions 46,185 - 46,185 - Other securities 5,291 - 5,291 - Mortgage-backed GSE residential 71,231 - 71,231 - |
Note 11_ Fair Value Measureme69
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | For the three months ended (dollars in thousands) December 31, 2016 December 31, 2015 Available-for-sale securities, beginning of period $- $- Total unrealized gain (loss) included in comprehensive income - - Transfer from Level 2 to Level 3 - - Available-for-sale securities, end of period $- $- For the six months ended (dollars in thousands) December 31, 2016 December 31, 2015 Available-for-sale securities, beginning of period $- $226 Total unrealized gain (loss) included in comprehensive income - 26 Transfer from Level 3 to Level 2 - (252) Available-for-sale securities, end of period $- $- |
Note 11_ Fair Value Measureme70
Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at December 31, 2016 Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $3,349 $- $- $3,349 Fair Value Measurements at June 30, 2016, Using: Quoted Prices in Active Markets for Significant Other Significant Identical Assets Observable Inputs Unobservable Inputs (dollars in thousands) Fair Value (Level 1) (Level 2) (Level 3) Foreclosed and repossessed assets held for sale $3,366 $- $- $3,366 |
Note 11_ Fair Value Measureme71
Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis | For the six months ended (dollars in thousands) December 31, 2016 December 31, 2015 Foreclosed and repossessed assets held for sale $(167) $(176) Total losses on assets measured on a non-recurring basis $(167) $(176) |
Note 11_ Fair Value Measureme72
Note 11: Fair Value Measurements: Fair Value Inputs, Assets, Quantitative Information (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Fair Value Inputs, Assets, Quantitative Information | (dollars in thousands) Fair value at December 31, 2016 Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $3,349 Third party appraisal Marketability discount 0.0% - 76.0% 33.4% (dollars in thousands) Fair value at Valuation technique Unobservable inputs Range of inputs applied Weighted-average inputs applied Nonrecurring Measurements Foreclosed and repossessed assets $3,366 Third party appraisal Marketability discount 0.0% - 76.0% 35.6% |
Note 11_ Fair Value Measureme73
Note 11: Fair Value Measurements: Schedule of Financial Instruments (Tables) | 3 Months Ended |
Dec. 31, 2016 | |
Tables/Schedules | |
Schedule of Financial Instruments | December 31, 2016 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $30,367 $30,367 $- $- Interest-bearing time deposits 498 - 498 - Stock in FHLB 5,906 - 5,906 - Stock in Federal Reserve Bank of St. Louis 2,350 - 2,350 - Loans receivable, net 1,209,836 - - 1,213,884 Accrued interest receivable 6,791 - 6,791 - Financial liabilities Deposits 1,211,816 776,973 - 434,280 Securities sold under agreements to repurchase 22,542 - 22,542 - Advances from FHLB 107,502 83,700 24,068 - Accrued interest payable 763 - 763 - Subordinated debt 14,800 - - 10,473 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - June 30, 2016 Quoted Prices in Active Significant Markets for Significant Other Unobservable Carrying Identical Assets Observable Inputs Inputs (dollars in thousands) Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $22,554 $22,554 $- $- Interest-bearing time deposits 723 - 723 - Stock in FHLB 6,009 - 6,009 - Stock in Federal Reserve Bank of St. Louis 2,343 - 2,343 - Loans receivable, net 1,135,453 - - 1,136,723 Accrued interest receivable 5,512 - 5,512 - Financial liabilities Deposits 1,120,693 721,973 - 398,505 Securities sold under agreements to repurchase 27,085 - 27,085 - Advances from FHLB 110,216 69,750 41,442 - Accrued interest payable 720 - 720 - Subordinated debt 14,753 - - 11,992 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - |
Note 2_ Organization and Summ74
Note 2: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 |
Details | ||
Cash Due and Interest-Bearing Deposits in Other Depository Institutions | $ 1,100 | $ 10,500 |
Note 2_ Organization and Summ75
Note 2: Organization and Summary of Significant Accounting Policies: Intangible Assets, Finite-Lived, Policy (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Dec. 31, 2016 | Jun. 30, 2021 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2016 | |
Details | ||||||
Finite-Lived Core Deposits, Gross | $ 5,900 | $ 5,900 | ||||
Finite-Lived Intangible Assets, Accumulated Amortization | 3,300 | 3,000 | ||||
Other Finite-Lived Intangible Assets, Gross | 3,800 | 3,800 | ||||
Gross Other Identifiable Intangibles Accumulated Amortization | 3,800 | 3,800 | ||||
FHLB Mortgage Servicing Rights | $ 359 | $ 275 | ||||
Finite-Lived Intangible Assets, Amortization Method | The Company’s core deposit intangible assets are being amortized using the straight line method | |||||
Core Deposits and Intangible Assets, Remaining Amortization Period | periods ranging from five to six years | |||||
Finite-Lived Intangible Assets, Amortization Expense, Remainder of Fiscal Year | $ 456 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | $ 911 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Three | $ 655 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Four | $ 500 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Five | $ 42 |
Note 3_ Securities_ Schedule 76
Note 3: Securities: Schedule of Available for Sale Securities (Details) - Investment and mortgage backed securities - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Available-for-sale Securities, Amortized Cost Basis | $ 133,125 | $ 126,582 |
Available for sale Securities Gross Unrealized Gain | 1,112 | 3,425 |
Available For Sale Securities Gross Unrealized Losses | (2,121) | (783) |
Available-for-sale Securities Estimated Fair Value | 132,116 | 129,224 |
US Government-sponsored Enterprises Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 6,470 | 6,460 |
Available for sale Securities Gross Unrealized Gain | 22 | 57 |
Available For Sale Securities Gross Unrealized Losses | (36) | |
Available-for-sale Securities Estimated Fair Value | 6,456 | 6,517 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 45,963 | 44,368 |
Available for sale Securities Gross Unrealized Gain | 819 | 1,820 |
Available For Sale Securities Gross Unrealized Losses | (580) | (3) |
Available-for-sale Securities Estimated Fair Value | 46,202 | 46,185 |
Other Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 6,572 | 5,861 |
Available for sale Securities Gross Unrealized Gain | 161 | 206 |
Available For Sale Securities Gross Unrealized Losses | (689) | (776) |
Available-for-sale Securities Estimated Fair Value | 6,044 | 5,291 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Amortized Cost Basis | 74,120 | 69,893 |
Available for sale Securities Gross Unrealized Gain | 110 | 1,342 |
Available For Sale Securities Gross Unrealized Losses | (816) | (4) |
Available-for-sale Securities Estimated Fair Value | $ 73,414 | $ 71,231 |
Note 3_ Securities_ Contractu77
Note 3: Securities: Contractual Obligation, Fiscal Year Maturity Schedule (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Details | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 607 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 610 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 11,530 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 11,577 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 20,986 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 21,072 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 25,882 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 25,443 |
Debt and equity securities amortized cost | 59,005 |
Debt and equity securities fair value | 58,702 |
Mortgage-backed securities GSE residential amortized cost | 74,120 |
Mortgage-backed securities GSE residential fair value | 73,414 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 133,125 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $ 132,116 |
Note 3_ Securities_ Repurchas78
Note 3: Securities: Repurchase Agreements, Collateral, Policy (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Assets Sold under Agreements to Repurchase, Carrying Amount | $ 112,400 | $ 106,700 |
US Government and Federal Agency Obligations | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 6,400 | 5,500 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 52,500 | 52,200 |
Collateralized Mortgage Obligations | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 14,100 | 13,600 |
US States and Political Subdivisions Debt Securities | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | 38,800 | 34,800 |
Other Securities | ||
Assets Sold under Agreements to Repurchase, Carrying Amount | $ 600 | $ 600 |
Note 3_ Securities_ Available79
Note 3: Securities: Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Investment and mortgage backed securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 77,138 | $ 3,632 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 1,422 | 7 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,490 | 1,080 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 699 | 776 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 78,628 | 4,712 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 2,121 | 783 |
US Government-sponsored Enterprises Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,460 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 36 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 3,460 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 36 | |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 18,946 | 720 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 580 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 18,946 | 720 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 580 | 3 |
Other Debt Obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,147 | 1,080 |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 689 | 776 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,147 | 1,080 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | 689 | 776 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 54,732 | 2,912 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss | 806 | 4 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 343 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss | 10 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 55,075 | 2,912 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss | $ 816 | $ 4 |
Note 3_ Securities_ Other Sec80
Note 3: Securities: Other Securities Policy: Pooled Trust Preferred Securities (Details) $ in Thousands | Dec. 31, 2016USD ($) |
Details | |
Number of Pooled Trust Preferred Securities | 3 |
Fair Value of Pooled Trust Preferred Securities Held | $ 753 |
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More | $ 681 |
Note 3_ Securities_ Other tha81
Note 3: Securities: Other than Temporary Impairment, Credit Losses Recognized in Earnings (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | $ (4) | $ (5) |
Beginning of period | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | 352 | 365 |
End of period | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | $ 348 | $ 360 |
Note 4_ Loans and Allowance F82
Note 4: Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Loans receivable, net | $ 1,209,836 | $ 1,135,453 |
Consumer Loan | ||
Loans receivable, net | 49,562 | 46,541 |
Commercial Loan | ||
Loans receivable, net | 201,645 | 202,045 |
Loans Receivable Gross | ||
Loans receivable, net | 1,236,713 | 1,170,981 |
Loans in process | ||
Loans receivable, net | (11,898) | (21,779) |
Deferred loan fees, net | ||
Loans receivable, net | 13 | 42 |
Allowance for Loan and Lease Losses | ||
Loans receivable, net | (14,992) | (13,791) |
Loans Receivable Net | ||
Loans receivable, net | 1,209,836 | 1,135,453 |
Residential Mortgage | ||
Loans receivable, net | 404,397 | 392,974 |
Construction Real Estate | ||
Loans receivable, net | 61,680 | 77,369 |
Commercial Real Estate | ||
Loans receivable, net | $ 519,429 | $ 452,052 |
Note 4_ Loans and Allowance F83
Note 4: Loans and Allowance For Loan Losses: Construction Lending Policy: Construction Loans Modified for other than TDR (Details) - Construction Loans $ in Thousands | Dec. 31, 2016USD ($) | Jun. 30, 2016USD ($) |
Number of Loans Modified for Other Than TDR | 52 | 42 |
Amount of Loans Modified for Other Than TDR | $ 10,200 | $ 10,300 |
Note 4_ Loans and Allowance F84
Note 4: Loans and Allowance For Loan Losses: Schedule of balance in the allowance for loan losses and recorded investment (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Jun. 30, 2016 | |
Residential Mortgage | |||||
Provision for Loan Losses Expensed | $ 316 | $ (64) | $ 316 | $ 475 | |
Allowance for Loan and Lease Losses, Write-offs | (26) | (97) | (90) | ||
Allowance for Doubtful Accounts Receivable, Recoveries | 3 | 2 | 6 | 3 | |
Residential Mortgage | Beginning of period | |||||
Allowance for loan losses | 3,153 | 3,295 | 3,247 | 2,819 | |
Residential Mortgage | End of period | |||||
Allowance for loan losses | 3,472 | 3,207 | 3,472 | 3,207 | $ 3,247 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,472 | 3,207 | 3,472 | 3,207 | 3,247 |
Financing Receivable, Collectively Evaluated for Impairment | 401,588 | 401,588 | 389,978 | ||
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 2,809 | 2,996 | |||
Construction Loan Payable | |||||
Provision for Loan Losses Expensed | (200) | 181 | (170) | 147 | |
Allowance for Loan and Lease Losses, Write-offs | (31) | (31) | |||
Allowance for Doubtful Accounts Receivable, Recoveries | 1 | 1 | |||
Construction Loan Payable | Beginning of period | |||||
Allowance for loan losses | 1,121 | 865 | 1,091 | 899 | |
Construction Loan Payable | End of period | |||||
Allowance for loan losses | 891 | 1,046 | 891 | 1,046 | 1,091 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 891 | 1,046 | 891 | 1,046 | 1,091 |
Financing Receivable, Collectively Evaluated for Impairment | 48,412 | 48,412 | 54,187 | ||
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 1,370 | 1,403 | |||
Commercial Real Estate | |||||
Provision for Loan Losses Expensed | 465 | 210 | 1,124 | 324 | |
Allowance for Loan and Lease Losses, Write-offs | (56) | (77) | |||
Allowance for Doubtful Accounts Receivable, Recoveries | 16 | 46 | 16 | 46 | |
Commercial Real Estate | Beginning of period | |||||
Allowance for loan losses | 6,370 | 5,049 | 5,711 | 4,956 | |
Commercial Real Estate | End of period | |||||
Allowance for loan losses | 6,851 | 5,249 | 6,851 | 5,249 | 5,711 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 6,851 | 5,249 | 6,851 | 5,249 | 5,711 |
Financing Receivable, Collectively Evaluated for Impairment | 509,705 | 509,705 | 442,173 | ||
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 9,724 | 9,879 | |||
Consumer Loan | |||||
Provision for Loan Losses Expensed | 53 | 59 | 52 | 60 | |
Allowance for Loan and Lease Losses, Write-offs | (35) | (25) | (39) | (35) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 2 | 5 | 3 | ||
Consumer Loan | Beginning of period | |||||
Allowance for loan losses | 738 | 750 | 738 | 758 | |
Consumer Loan | End of period | |||||
Allowance for loan losses | 756 | 786 | 756 | 786 | 738 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 756 | 786 | 756 | 786 | 738 |
Financing Receivable, Collectively Evaluated for Impairment | 49,562 | 49,562 | 46,541 | ||
Commercial Loan | |||||
Provision for Loan Losses Expensed | 22 | 110 | 259 | 108 | |
Allowance for Loan and Lease Losses, Write-offs | (101) | (88) | (270) | (100) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 27 | 9 | 29 | 10 | |
Commercial Loan | Beginning of period | |||||
Allowance for loan losses | 3,074 | 2,853 | 3,004 | 2,866 | |
Commercial Loan | End of period | |||||
Allowance for loan losses | 3,022 | 2,884 | 3,022 | 2,884 | 3,004 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 144 | 144 | |||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,022 | 2,740 | 3,022 | 2,740 | 3,004 |
Financing Receivable, Collectively Evaluated for Impairment | 200,748 | 200,748 | 201,013 | ||
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 897 | 1,032 | |||
Total loans | |||||
Provision for Loan Losses Expensed | 656 | 496 | 1,581 | 1,114 | |
Allowance for Loan and Lease Losses, Write-offs | (167) | (195) | (437) | (302) | |
Allowance for Doubtful Accounts Receivable, Recoveries | 47 | 59 | 57 | 62 | |
Total loans | Beginning of period | |||||
Allowance for loan losses | 14,456 | 12,812 | 13,791 | 12,298 | |
Total loans | End of period | |||||
Allowance for loan losses | 14,992 | 13,172 | 14,992 | 13,172 | 13,791 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 144 | 144 | |||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 14,992 | $ 13,028 | 14,992 | $ 13,028 | 13,791 |
Financing Receivable, Collectively Evaluated for Impairment | $ 1,210,015 | 1,210,015 | 1,133,892 | ||
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | $ 14,800 | $ 15,310 |
Note 4_ Loans and Allowance F85
Note 4: Loans and Allowance For Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Residential Mortgage | Pass | ||
Financing Receivable Credit Quality Indicators | $ 400,627 | $ 388,733 |
Residential Mortgage | Watch | ||
Financing Receivable Credit Quality Indicators | 252 | 583 |
Residential Mortgage | Substandard | ||
Financing Receivable Credit Quality Indicators | 3,518 | 3,658 |
Residential Mortgage | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 404,397 | 392,974 |
Construction Loan Payable | Pass | ||
Financing Receivable Credit Quality Indicators | 49,590 | 55,202 |
Construction Loan Payable | Substandard | ||
Financing Receivable Credit Quality Indicators | 192 | 388 |
Construction Loan Payable | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 49,782 | 55,590 |
Commercial Real Estate | Pass | ||
Financing Receivable Credit Quality Indicators | 510,861 | 443,933 |
Commercial Real Estate | Watch | ||
Financing Receivable Credit Quality Indicators | 3,050 | 3,095 |
Commercial Real Estate | Substandard | ||
Financing Receivable Credit Quality Indicators | 5,518 | 5,024 |
Commercial Real Estate | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 519,429 | 452,052 |
Consumer Loan | Pass | ||
Financing Receivable Credit Quality Indicators | 49,423 | 46,341 |
Consumer Loan | Watch | ||
Financing Receivable Credit Quality Indicators | 24 | |
Consumer Loan | Substandard | ||
Financing Receivable Credit Quality Indicators | 139 | 176 |
Consumer Loan | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 49,562 | 46,541 |
Commercial Loan | Pass | ||
Financing Receivable Credit Quality Indicators | 200,460 | 200,252 |
Commercial Loan | Watch | ||
Financing Receivable Credit Quality Indicators | 16 | |
Commercial Loan | Substandard | ||
Financing Receivable Credit Quality Indicators | 1,185 | 1,777 |
Commercial Loan | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | $ 201,645 | $ 202,045 |
Note 4_ Loans and Allowance F86
Note 4: Loans and Allowance For Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Dec. 31, 2016 | Jun. 30, 2016 | |
Financing Receivable, Credit Quality, Additional Information | lending relationships of $1 million or more, exclusive of any consumer or owner-occupied residential loan, are subject to an annual credit analysis which is prepared by the loan administration department and presented to a loan committee with appropriate lending authority. A sample of lending relationships in excess of $2.5 million are subject to an independent loan review annually, in order to verify risk ratings | |
Loans without a specific valuation allowance | ||
Purchased Credit Impaired Loans | $ 14,800 | $ 15,300 |
Loans with a specific valuation allowance | ||
Purchased Credit Impaired Loans | 0 | |
Loans with and without a specific valuation allowance | ||
Purchased Credit Impaired Loans | 14,800 | 15,300 |
Pass | ||
Purchased Credit Impaired Loans | 8,900 | 9,200 |
Watch | ||
Purchased Credit Impaired Loans | 3,000 | 3,000 |
Special Mention | ||
Purchased Credit Impaired Loans | 0 | |
Substandard | ||
Purchased Credit Impaired Loans | 2,900 | 3,100 |
Doubtful | ||
Purchased Credit Impaired Loans | $ 0 | $ 0 |
Note 4_ Loans and Allowance F87
Note 4: Loans and Allowance For Loan Losses: Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Financing Receivables, 30 to 59 Days Past Due | Residential Mortgage | ||
Financing Receivable Recorded Investment | $ 2,675 | $ 1,157 |
Financing Receivables, 30 to 59 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 165 | |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 1,087 | |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 335 | 169 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 120 | 209 |
Financing Receivables, 30 to 59 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 4,217 | 1,700 |
Financing Receivables, 60 to 89 Days Past Due | Residential Mortgage | ||
Financing Receivable Recorded Investment | 456 | 457 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 725 | |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 121 | 99 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 222 | 138 |
Financing Receivables, 60 to 89 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 1,524 | 694 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Mortgage | ||
Financing Receivable Recorded Investment | 710 | 1,970 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 207 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 100 | 33 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 4 | 39 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 92 | 623 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 906 | 2,872 |
Nonperforming Financial Instruments | Residential Mortgage | ||
Financing Receivable Recorded Investment | 3,841 | 3,584 |
Nonperforming Financial Instruments | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 372 | |
Nonperforming Financial Instruments | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 1,912 | 33 |
Nonperforming Financial Instruments | Consumer Loan | ||
Financing Receivable Recorded Investment | 460 | 307 |
Nonperforming Financial Instruments | Commercial Loan | ||
Financing Receivable Recorded Investment | 434 | 970 |
Nonperforming Financial Instruments | Total loans | ||
Financing Receivable Recorded Investment | 6,647 | 5,266 |
Financing Receivables Current | Residential Mortgage | ||
Financing Receivable Recorded Investment | 400,556 | 389,390 |
Financing Receivables Current | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 49,782 | 55,218 |
Financing Receivables Current | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 517,517 | 452,019 |
Financing Receivables Current | Consumer Loan | ||
Financing Receivable Recorded Investment | 49,102 | 46,234 |
Financing Receivables Current | Commercial Loan | ||
Financing Receivable Recorded Investment | 201,211 | 201,075 |
Financing Receivables Current | Total loans | ||
Financing Receivable Recorded Investment | 1,218,168 | 1,143,936 |
Performing Financial Instruments | Residential Mortgage | ||
Financing Receivable Recorded Investment | 404,397 | 392,974 |
Performing Financial Instruments | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 49,782 | 55,590 |
Performing Financial Instruments | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 519,429 | 452,052 |
Performing Financial Instruments | Consumer Loan | ||
Financing Receivable Recorded Investment | 49,562 | 46,541 |
Performing Financial Instruments | Commercial Loan | ||
Financing Receivable Recorded Investment | 201,645 | 202,045 |
Performing Financial Instruments | Total loans | ||
Financing Receivable Recorded Investment | 1,224,815 | 1,149,202 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Consumer Loan | ||
Financing Receivable Recorded Investment | 3 | 7 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Loan | ||
Financing Receivable Recorded Investment | 82 | 31 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Total loans | ||
Financing Receivable Recorded Investment | $ 85 | $ 38 |
Note 4_ Loans and Allowance F88
Note 4: Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Consumer Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 35 | $ 36 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 153 | 36 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 35 | 36 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 153 | 36 |
Commercial Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,392 | 1,461 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,451 | 1,532 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 1,392 | 1,461 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 1,451 | 1,532 |
Residential Mortgage | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,107 | 3,300 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,352 | 3,558 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 3,107 | 3,300 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 3,352 | 3,558 |
Construction Real Estate | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,407 | 1,404 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,641 | 1,777 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 1,407 | 1,404 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 1,641 | 1,777 |
Commercial Real Estate | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 13,453 | 11,681 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 14,984 | 13,326 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 13,453 | 11,681 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | $ 14,984 | $ 13,326 |
Note 4_ Loans and Allowance F89
Note 4: Loans and Allowance For Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Residential Mortgage | ||||
Impaired Financing Receivable, Average Recorded Investment | $ 2,836 | $ 3,115 | $ 2,889 | $ 3,170 |
Impaired Financing Receivable Interest Income Recognized | 21 | 16 | 51 | 44 |
Construction Real Estate | ||||
Impaired Financing Receivable, Average Recorded Investment | 1,378 | 1,629 | 1,387 | 1,706 |
Impaired Financing Receivable Interest Income Recognized | 37 | 25 | 71 | 62 |
Commercial Real Estate | ||||
Impaired Financing Receivable, Average Recorded Investment | 9,772 | 10,575 | 9,807 | 10,614 |
Impaired Financing Receivable Interest Income Recognized | 186 | 390 | 367 | 574 |
Consumer Loan | ||||
Impaired Financing Receivable, Average Recorded Investment | 70 | |||
Impaired Financing Receivable Interest Income Recognized | 2 | |||
Commercial Loan | ||||
Impaired Financing Receivable, Average Recorded Investment | 958 | 1,064 | 983 | 1,071 |
Impaired Financing Receivable Interest Income Recognized | 18 | 20 | 37 | 39 |
Total loans | ||||
Impaired Financing Receivable, Average Recorded Investment | 14,944 | 16,383 | 15,066 | 16,631 |
Impaired Financing Receivable Interest Income Recognized | $ 262 | $ 451 | $ 526 | $ 721 |
Note 4_ Loans and Allowance F90
Note 4: Loans and Allowance For Loan Losses: Loans and Leases Receivable Impaired Interest Income Recognized Change in Present Value Attributable to Passage of Time (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||||
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time | $ 79 | $ 48 | $ 161 | $ 97 |
Note 4_ Loans and Allowance F91
Note 4: Loans and Allowance For Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 2,453 | $ 2,676 |
Construction Real Estate | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 36 | 388 |
Commercial Real Estate | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 2,547 | 1,797 |
Consumer Loan | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 123 | 160 |
Commercial Loan | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 413 | 603 |
Total loans | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 5,572 | $ 5,624 |
Note 4_ Loans and Allowance F92
Note 4: Loans and Allowance For Loan Losses: Purchased Credit Impaired Loans Nonaccrual (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Included in Nonaccrual Loans | ||
Purchased Credit Impaired Loans | $ 2,400 | $ 2,600 |
Note 4_ Loans and Allowance F93
Note 4: Loans and Allowance For Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 31, 2016USD ($) | Dec. 31, 2016USD ($) | Dec. 31, 2015USD ($) | |
Residential Mortgage | |||
Financing Receivable Modifications Number of Contracts | 2 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 49 | ||
Construction Real Estate | |||
Financing Receivable Modifications Number of Contracts | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 36 | ||
Commercial Real Estate | |||
Financing Receivable Modifications Number of Contracts | 1 | 4 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 366 | $ 2,303 | |
Consumer Loan | |||
Financing Receivable Modifications Number of Contracts | 1 | 2 | |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 1 | $ 1 | |
Commercial Loan | |||
Financing Receivable Modifications Number of Contracts | 1 | ||
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 2 | ||
Total loans | |||
Financing Receivable Modifications Number of Contracts | 2 | 8 | 2 |
Financing Receivable, Modifications, Pre-Modification Recorded Investment | $ 367 | $ 2,342 | $ 49 |
Note 4_ Loans and Allowance F94
Note 4: Loans and Allowance For Loan Losses: Performing Loans Classified as Troubled Debt Restructuring Loans (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2016USD ($) | |
Residential Mortgage | |
Troubled Debt Restructuring Performing Loans, Number | 7 |
Commercial Real Estate | |
Troubled Debt Restructuring Performing Loans, Number | 13 |
Consumer Loan | |
Troubled Debt Restructuring Performing Loans, Number | 1 |
Commercial Loan | |
Troubled Debt Restructuring Performing Loans, Number | 4 |
Total loans | |
Troubled Debt Restructuring Performing Loans, Number | 25 |
Performing Financial Instruments | Residential Mortgage | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 487 |
Performing Financial Instruments | Commercial Real Estate | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 5,783 |
Performing Financial Instruments | Consumer Loan | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 35 |
Performing Financial Instruments | Commercial Loan | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | 1,368 |
Performing Financial Instruments | Total loans | |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 7,673 |
Note 5_ Accounting For Certai95
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans with Credit Deterioration (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 | |
Construction Real Estate | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 1,605 | $ 1,777 | |
Commercial Real Estate | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 11,255 | 11,523 | |
Consumer Loan | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 118 | ||
Commercial Loan | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 955 | 1,103 | |
Outstanding balance | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 16,986 | 17,657 | |
Carrying Amount Of Acquired Loans Net | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | [1] | 14,801 | 15,310 |
Residential Mortgage | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 3,053 | $ 3,254 | |
[1] | Fair value adjustment of $2,419 and 3,132 at March 31, 2016 and June 30, 2015, respectively. |
Note 5_ Accounting For Certai96
Note 5: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans in Transfer Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Certain Loans Acquired In Transfer Accretable Yield Accretion | $ (79) | $ (255) | $ (161) | $ (304) |
Certain Loans Acquired In Transfer Accretable Yield Reclassification from Nonaccretable Difference | 65 | 339 | 131 | 423 |
Beginning of period | ||||
Certain Loans Acquired In Transfer Accretable Yield | 640 | 582 | 656 | 547 |
End of period | ||||
Certain Loans Acquired In Transfer Accretable Yield | $ 626 | $ 666 | $ 626 | $ 666 |
Note 6_ Deposits_ Schedule of97
Note 6: Deposits: Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Details | ||
Noninterest-bearing Deposit Liabilities | $ 136,024 | $ 131,997 |
Deposits, Negotiable Order of Withdrawal (NOW) | 436,175 | 396,104 |
Deposits, Money Market Deposits | 88,208 | 78,155 |
Deposits, Savings Deposits | 116,514 | 115,714 |
Interest-bearing Domestic Deposit, Certificates of Deposits | 434,895 | 398,723 |
Deposits, Domestic | $ 1,211,816 | $ 1,120,693 |
Note 7_ Earnings Per Share (Det
Note 7: Earnings Per Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||||
Earnings per share net income | $ 4,176 | $ 4,209 | $ 7,885 | $ 7,844 |
Dividends, Preferred Stock | 35 | 85 | ||
Net income available to common shareholders | $ 4,176 | $ 4,174 | $ 7,885 | $ 7,759 |
Weighted Average Number of Shares Outstanding, Basic | 7,440,620 | 7,425,351 | 7,438,767 | 7,423,853 |
Stock options under treasury stock method | 26,388 | 34,833 | 25,195 | 32,804 |
Weighted Average Number of Shares Outstanding, Diluted | 7,467,008 | 7,460,184 | 7,463,962 | 7,456,657 |
Basic earnings per common share | $ 0.56 | $ 0.56 | $ 1.06 | $ 1.05 |
Diluted earnings per common share | $ 0.56 | $ 0.56 | $ 1.06 | $ 1.04 |
Note 8_ Income Taxes_ Schedul99
Note 8: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||||
Current Income Tax Expense (Benefit) | $ 386 | $ 1,921 | $ 2,859 | $ 4,125 |
Deferred Income Taxes and Tax Credits | 1,349 | (101) | 234 | (640) |
Income tax provision, total | $ 1,735 | $ 1,820 | $ 3,093 | $ 3,485 |
Note 8_ Income Taxes_ Schedu100
Note 8: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Details | ||
Deferred Tax Assets Provision for Losses on Loans | $ 5,019 | $ 4,760 |
Deferred Tax Assets Accrued Compensation and Benefits | 717 | 885 |
Deferred Tax Assets Other-than-Temporary Impairment on Available for Sale Securities | 131 | 139 |
Deferred Tax Assets NOL Carry Forwards Acquired | 557 | 631 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 130 | 130 |
Deferred Tax Assets Unrealized Loss on Other Real Estate | 118 | 183 |
Deferred Tax Assets, Unrealized Losses on Available-for-Sale Securities, Gross | 373 | |
Deferred Tax Assets, Gross | 7,044 | 6,728 |
Deferred tax liabilities purchase accounting adjustments | 1,060 | 1,132 |
Deferred Tax Liabilities Depreciation | 1,958 | 1,781 |
Deferred Tax Liabilities FHLB Stock Dividends | 184 | 194 |
Deferred Tax Liabilities, Prepaid Expenses | 199 | 177 |
Deferred Tax Liabilities, Unrealized Gains on Trading Securities | 977 | |
Deferred Tax Liabilities, Other | 142 | 82 |
Deferred Tax Liabilities, Net | 3,543 | 4,343 |
Deferred Tax Assets, Net of Valuation Allowance | $ 3,501 | $ 2,385 |
Note 8_ Income Taxes (Details)
Note 8: Income Taxes (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Details | ||
Deferred Tax Assets, Operating Loss Carryforwards | $ 1,800 | $ 3,900 |
Note 8_ Income Taxes_ Schedu102
Note 8: Income Taxes: Schedule of Reconciliation of Income Tax Expense at the Statutory Rate to Actual Income Tax (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 2,069 | $ 2,109 | $ 3,842 | $ 3,965 |
Income Tax Expense, Actual | 1,735 | 1,820 | 3,093 | 3,485 |
Increase (decrease) in taxes | ||||
Nontaxable Municipal Income | (129) | (145) | (261) | (279) |
Current State and Local Tax Expense (Benefit) | 60 | 163 | 108 | 317 |
Cash Surrender Value Of Bank-owned Life Insurance | (74) | (163) | (147) | (208) |
Tax Credit Benefits | (93) | (63) | (187) | (125) |
Taxes, Other | $ (98) | $ (81) | $ (262) | $ (185) |
Note 9_ 401(k) Retirement Plan
Note 9: 401(k) Retirement Plan (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Details | ||||
Defined Contribution Plan, Administrative Expenses | $ 205 | $ 207 | $ 448 | $ 421 |
Note 11_ Fair Value Measurem104
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
US Government-sponsored Enterprises Debt Securities | ||
Assets, Fair Value Disclosure, Recurring | $ 6,456 | $ 6,517 |
US States and Political Subdivisions Debt Securities | ||
Assets, Fair Value Disclosure, Recurring | 46,202 | 46,185 |
Other Debt Obligations | ||
Assets, Fair Value Disclosure, Recurring | 6,044 | 5,291 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Assets, Fair Value Disclosure, Recurring | $ 73,414 | $ 71,231 |
Note 11_ Fair Value Measurem105
Note 11: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) $ in Thousands | 6 Months Ended |
Dec. 31, 2015USD ($) | |
Details | |
Fair Value Assets Measured On Recurring Basis Unrealized Gain (Loss) Included in Comprehensive Income | $ 26 |
Fair Value Assets Level 2 To Level 3 Transfers Amount | $ (252) |
Note 11_ Fair Value Measurem106
Note 11: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Foreclosed and repossessed assets held for sale | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 3,349 | $ 3,366 |
Note 11_ Fair Value Measurem107
Note 11: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Foreclosed and repossessed assets held for sale | ||
Gains (losses) recognized on assets measured on a non-recurring basis | $ (167) | $ (176) |
Total Gains Losses on Assets Measured on a Nonrecurring Basis | ||
Gains (losses) recognized on assets measured on a non-recurring basis | $ (167) | $ (176) |
Note 11_ Fair Value Measurem108
Note 11: Fair Value Measurements: Fair Value Inputs, Assets, Quantitative Information (Details) - Fair Value, Inputs, Level 3 - Foreclosed and Repossessed Assets - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Dec. 31, 2016 | Dec. 31, 2016 | Jun. 30, 2016 | |
Fair Value Asset Liability Measured On Nonrecurring Basis With Unobservable Inputs | $ 3,349 | $ 3,366 | |
Third party appraisal | |||
Fair Value Measurements Nonrecurring Valuation Technique | Third party appraisal | Third party appraisal | |
Third party appraisal | Marketability discount | |||
Fair Value Measurements Nonrecurring Unobservable Inputs | Marketability discount | Marketability discount | |
Fair Value Measurements Nonrecurring Range of discounts Applied | 0.0% - 76.0% | 0.0% - 76.0% | |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 33.4% | 35.6% |
Note 11_ Fair Value Measurem109
Note 11: Fair Value Measurements: Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Jun. 30, 2016 |
Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | $ 30,367 | $ 22,554 |
Financial Assets | Interest-bearing time deposits | ||
Financial Instruments Owned Carrying Amount | 498 | 723 |
Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | 5,906 | 6,009 |
Financial Assets | Investment In Stock Of Federal Reserve Bank Of St Louis | ||
Financial Instruments Owned Carrying Amount | 2,350 | 2,343 |
Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | 1,209,836 | 1,135,453 |
Financial Assets | Accrued interest receivable | ||
Financial Instruments Owned Carrying Amount | 6,791 | 5,512 |
Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | 1,211,816 | 1,120,693 |
Financial Liabilities | Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned Carrying Amount | 22,542 | 27,085 |
Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | 107,502 | 110,216 |
Financial Liabilities | Accrued interest payable | ||
Financial Instruments Owned Carrying Amount | 763 | 720 |
Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | $ 14,800 | $ 14,753 |