Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 30, 2015 | Sep. 14, 2015 | Dec. 31, 2014 | |
Document and Entity Information: | |||
Entity Registrant Name | SOUTHERN MISSOURI BANCORP INC | ||
Document Type | 10-K | ||
Document Period End Date | Jun. 30, 2015 | ||
Trading Symbol | smbc | ||
Amendment Flag | false | ||
Entity Central Index Key | 916,907 | ||
Current Fiscal Year End Date | --06-30 | ||
Entity Common Stock, Shares Outstanding | 7,424,666 | ||
Entity Public Float | $ 115.1 | ||
Entity Filer Category | Accelerated Filer | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Well-known Seasoned Issuer | No | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY |
Southern Missouri Bancorp, Inc.
Southern Missouri Bancorp, Inc. -- CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Assets | ||
Cash and cash equivalents | $ 16,775 | $ 14,932 |
Interest-bearing time deposits | 1,944 | 1,655 |
Available for sale securities | 129,593 | 130,222 |
Stock in FHLB of Des Moines | 4,127 | 4,569 |
Stock in Federal Reserve Bank of St. Louis | 2,340 | 1,424 |
Loans receivable, net | 1,053,146 | 801,056 |
Accrued interest receivable | 5,168 | 4,402 |
Premises and equipment, net | 39,726 | 22,467 |
Bank owned life insurance - cash surrender value | 19,692 | 19,123 |
Goodwill | 4,556 | 1,600 |
Intangible assets, net | 4,201 | 2,335 |
Prepaid expenses and other assets | 18,796 | 17,637 |
TOTAL ASSETS | 1,300,064 | 1,021,422 |
Liabilities and Stockholders' Equity | ||
Deposits | 1,055,242 | 785,801 |
Securities sold under agreements to repurchase | 27,332 | 25,561 |
Advances from FHLB of Des Moines | 64,794 | 85,472 |
Accounts payable and other liabilities | 4,618 | 3,181 |
Accrued interest payable | 777 | 569 |
Subordinated debt | 14,658 | 9,727 |
TOTAL LIABILITIES | $ 1,167,421 | $ 910,311 |
Commitments and contingencies | ||
Preferred stock | $ 20,000 | $ 20,000 |
Common stock | 74 | 33 |
Warrants to acquire common stock | 177 | |
Additional paid-in capital | 33,948 | 23,504 |
Retained earnings | 77,760 | 66,809 |
Accumulated other comprehensive income | 861 | 588 |
TOTAL STOCKHOLDERS' EQUITY | 132,643 | 111,111 |
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY | $ 1,300,064 | $ 1,021,422 |
Southern Missouri Bancorp, Inc3
Southern Missouri Bancorp, Inc. -- CONSOLIDATED BALANCE SHEETS (Parentheticals) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Statements of Financial Condition | ||
Allowance for loan losses of loans receivable (in dollars) | $ 12,298 | $ 9,259 |
Preferred stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Preferred stock liquidation value (in dollars) | $ 1,000 | $ 1,000 |
Preferred stock shares authorized | 500,000 | 500,000 |
Preferred stock shares issued | 20,000 | 20,000 |
Preferred stock shares outstanding | 20,000 | 20,000 |
Common stock par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock shares authorized | 10,000,000 | 8,000,000 |
Common stock shares issued | 7,419,666 | 3,340,440 |
Southern Missouri Bancorp, Inc4
Southern Missouri Bancorp, Inc. -- CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Interest Income: | |||
Loans | $ 51,515 | $ 37,552 | $ 34,355 |
Investment securities | 1,996 | 1,951 | 1,528 |
Mortgage-backed securities | 1,674 | 943 | 341 |
Other interest-earning assets | 116 | 25 | 67 |
TOTAL INTEREST INCOME | 55,301 | 40,471 | 36,291 |
Interest Expense: | |||
Deposits | 6,859 | 5,963 | 6,073 |
Securities sold under agreements to repurchase | 117 | 132 | 202 |
Advances from FHLB of Des Moines | 1,278 | 1,085 | 999 |
Subordinated debt | 512 | 305 | 227 |
TOTAL INTEREST EXPENSE | 8,766 | 7,485 | 7,501 |
NET INTEREST INCOME | 46,535 | 32,986 | 28,790 |
Provision for loan losses | 3,185 | 1,646 | 1,716 |
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES | 43,350 | 31,340 | 27,074 |
Noninterest income: | |||
Deposit account charges and related fees | 3,456 | 2,616 | 1,873 |
Bank card interchange income | 2,294 | 1,433 | 1,185 |
Loan late charges | 401 | 241 | 240 |
Loan servicing fees | 143 | 41 | |
Other loan fees | 720 | 443 | 290 |
Net realized gains on sale of loans | 656 | 503 | 303 |
Net realized gains on sale of AFS securities | 6 | 116 | |
Earnings on bank owned life insurance | 569 | 540 | 510 |
Other income | 414 | 199 | 67 |
TOTAL NONINTEREST INCOME | 8,659 | 6,132 | 4,468 |
Noninterest expense: | |||
Compensation and benefits | 17,828 | 12,265 | 10,136 |
Occupancy and equipment, net | 5,879 | 3,846 | 2,817 |
Deposit insurance premiums | 686 | 462 | 378 |
Legal and professional fees | 897 | 1,524 | 477 |
Advertising | 904 | 520 | 313 |
Postage and office supplies | 577 | 568 | 470 |
Intangible amortization | 1,253 | 674 | 417 |
Bank card network fees | 1,019 | 1,114 | 567 |
Other operating expense | 3,242 | 2,673 | 1,946 |
TOTAL NONINTEREST EXPENSE | 32,285 | 23,646 | 17,521 |
INCOME BEFORE INCOME TAXES | 19,724 | 13,826 | 14,021 |
Income Taxes | |||
Current | 6,586 | 4,353 | 3,724 |
Deferred | (530) | (608) | 230 |
Total Income Taxes | 6,056 | 3,745 | 3,954 |
NET INCOME | 13,668 | 10,081 | 10,067 |
Less: dividend on preferred shares | 200 | 200 | 345 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 13,468 | $ 9,881 | $ 9,722 |
Basic earnings per share available to common stockholders | $ 1.84 | $ 1.49 | $ 1.48 |
Diluted earnings per share available to common stockholders | 1.79 | 1.45 | 1.44 |
Dividends paid | $ 0.34 | $ 0.32 | $ 0.30 |
Southern Missouri Bancorp, Inc5
Southern Missouri Bancorp, Inc. -- CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statements of Comprehensive Income | |||
NET INCOME | $ 13,668 | $ 10,081 | $ 10,067 |
Other comprehensive income: | |||
Unrealized gains (losses) on securities available-for-sale | 512 | 1,054 | (1,420) |
Less: reclassification adjustment for realized gains included in net income | 6 | 116 | |
Unrealized gains (losses) on available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income | (58) | 291 | 16 |
Defined benefit pension plan net (loss) gain | (14) | (12) | 6 |
Tax (expense) benefit | (161) | (450) | 519 |
Total other comprehensive income (loss) | 273 | 767 | (879) |
COMPREHENSIVE INCOME | $ 13,941 | $ 10,848 | $ 9,188 |
Southern Missouri Bancorp, Inc6
Southern Missouri Bancorp, Inc. -- CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Preferred Stock | Common Stock | Warrants to Acquire Common Stock | Additional Paid-In Capital | Retained Earnings | Treasury Stock | Accumulated Other Comprehensive Income (Loss) | Total Stockholders' Equity | |
Balance at beginning of period at Jun. 30, 2012 | $ 20,000 | $ 33 | $ 177 | $ 22,479 | $ 51,365 | $ (26) | $ 700 | $ 94,728 | ||
Net Income | $ 10,067 | 10,067 | 10,067 | |||||||
Change in unrealized gain on available for sale securities | (884) | (884) | ||||||||
Defined benefit pension plan net gain (loss) | (6) | 5 | 5 | |||||||
Dividends paid on common stock | (1,975) | (1,975) | (1,975) | [1] | ||||||
Dividends paid on preferred stock | (412) | (411) | (411) | |||||||
Stock option expense | 14 | 14 | ||||||||
Stock grant expense | 199 | 172 | 172 | |||||||
Tax benefit of stock grants | 13 | 13 | ||||||||
Exercise of stock options | 101 | 74 | $ 26 | 100 | ||||||
Balance at end of period at Jun. 30, 2013 | 20,000 | 33 | 177 | 22,752 | 59,046 | (179) | 101,829 | |||
Balance at beginning of period at Jun. 30, 2013 | 20,000 | 33 | 177 | 22,752 | 59,046 | (179) | 101,829 | |||
Net Income | 10,081 | 10,081 | 10,081 | |||||||
Change in unrealized gain on available for sale securities | 775 | 775 | ||||||||
Defined benefit pension plan net gain (loss) | 12 | (8) | (8) | |||||||
Dividends paid on common stock | (2,119) | (2,118) | (2,118) | [2] | ||||||
Dividends paid on preferred stock | (200) | (200) | (200) | |||||||
Stock option expense | 13 | 13 | ||||||||
Stock grant expense | 228 | 172 | 172 | |||||||
Tax benefit of stock grants | 43 | 43 | ||||||||
Exercise of stock options | 524 | 43 | 524 | 524 | ||||||
Balance at end of period at Jun. 30, 2014 | 20,000 | 33 | 177 | 23,504 | 66,809 | 588 | 111,111 | |||
Balance at beginning of period at Jun. 30, 2014 | 20,000 | 33 | 177 | 23,504 | 66,809 | 588 | 111,111 | |||
Net Income | 13,668 | 13,668 | 13,668 | |||||||
Change in unrealized gain on available for sale securities | 282 | 282 | ||||||||
Defined benefit pension plan net gain (loss) | 14 | (9) | (9) | |||||||
Dividends paid on common stock | (2,517) | (2,517) | (2,517) | [3] | ||||||
Dividends paid on preferred stock | (200) | (200) | (200) | |||||||
Stock option expense | 15 | 15 | ||||||||
Stock grant expense | 344 | 275 | 275 | |||||||
Tax benefit of stock grants | 54 | 54 | ||||||||
Exercise of stock options | $ 332 | 332 | 332 | |||||||
Repurchase of warrants to acquire common stock | $ (177) | (2,523) | (2,700) | |||||||
Common stock issued | 4 | 12,328 | 12,332 | |||||||
Two-for-one common stock split in the form of a 100% common stock dividend | 37 | (37) | ||||||||
Balance at end of period at Jun. 30, 2015 | $ 20,000 | $ 74 | $ 33,948 | $ 77,760 | $ 861 | $ 132,643 | ||||
[1] | $.30 per share. | |||||||||
[2] | $.32 per share | |||||||||
[3] | $.34 per share |
Southern Missouri Bancorp, Inc7
Southern Missouri Bancorp, Inc. -- CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Parentheticals) - $ / shares | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Statements of Stockholders Equity | |||
Dividends paid | $ 0.34 | $ 0.32 | $ 0.30 |
Southern Missouri Bancorp, Inc8
Southern Missouri Bancorp, Inc. -- CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Cash Flows From Operating Activities: | |||
NET INCOME | $ 13,668 | $ 10,081 | $ 10,067 |
Items not requiring (providing) cash: | |||
Depreciation | 1,988 | 1,511 | 1,151 |
Loss on disposal of fixed assets | 101 | ||
Stock option and stock grant expense | 344 | 228 | 199 |
Loss on sale of foreclosed assets | 55 | 31 | 69 |
Amortization of intangible assets | 1,253 | 674 | 417 |
Amortization of purchase accounting adjustments | (2,527) | (6) | |
Increase in cash surrender value of bank owned life insurance | (569) | (540) | (510) |
Provision for loan losses and off-balance sheet credit exposures | 3,185 | 1,646 | 1,716 |
Gains realized on sale of AFS securities | (6) | (116) | |
Net amortization of premiums and discounts on securities | 897 | 1,047 | 608 |
Originations of loans held for sale | (16,557) | (15,475) | (7,669) |
Proceeds from sales of loans held for sale | 17,264 | 15,723 | 7,405 |
Gain on sales of loans held for sale | (656) | (503) | (303) |
Changes in: | |||
Accrued interest receivable | (133) | 250 | (275) |
Prepaid expenses and other assets | 1,453 | 459 | 1,383 |
Accounts payable and other liabilities | 659 | (601) | 762 |
Deferred income taxes | (530) | (608) | 230 |
Accrued interest payable | 130 | (459) | (97) |
NET CASH PROVIDED BY OPERATING ACTIVITIES | 19,918 | 13,342 | 15,254 |
Cash flows from investing activities: | |||
Net increase in loans | (64,354) | (104,088) | (68,738) |
Net change in interest-bearing deposits | 9,661 | 293 | |
Proceeds from maturities of available for sale securities | 19,923 | 13,041 | 33,199 |
Proceeds from sales of available for sale securities | 14,021 | 38,050 | |
Net redemptions (purchases) of Federal Home Loan Bank stock | 1,370 | (2,254) | 12 |
Net purchases of Federal Reserve Bank of Saint Louis stock | (916) | (419) | (3) |
Purchases of available-for-sale securities | (2,551) | (16,780) | (40,087) |
Purchases of premises and equipment | (7,476) | (5,681) | (7,557) |
Net cash received in (paid for) acquisitions | 3,221 | (5,585) | |
Investments in state & federal tax credits | (3,588) | (2,744) | |
Proceeds from sale of fixed assets | 14 | 849 | 136 |
Proceeds from sale of foreclosed assets | 790 | 944 | 2,178 |
NET CASH USED IN INVESTING ACTIVITIES | (26,297) | (85,511) | (83,311) |
Cash flows from financing activities: | |||
Net increase in demand deposits and savings accounts | 50,677 | 20,943 | 6,638 |
Net (decrease) increase in certificates of deposits | (2,741) | 91 | 40,927 |
Net increase (decrease) in securities sold under agreements to repurchase | 1,771 | (3,327) | 2,146 |
Proceeds from Federal Home Loan Bank advances | 335,560 | 311,335 | 92,285 |
Repayments of Federal Home Loan Bank advances | (371,960) | (252,935) | (92,285) |
Redemption of common stock warrants | (2,700) | ||
Exercise of stock options | 332 | 524 | 101 |
Dividends paid on preferred stock | (200) | (200) | (412) |
Dividends paid on common stock | (2,517) | (2,119) | (1,975) |
NET CASH PROVIDED BY FINANCING ACTIVITIES | 8,222 | 74,312 | 47,425 |
Increase (decrease) in cash and cash equivalents | 1,843 | 2,143 | (20,632) |
Cash and cash equivalents at beginning of period | 14,932 | 12,789 | 33,421 |
Cash and cash equivalents at end of period | 16,775 | 14,932 | 12,789 |
Noncash investing and financing activities: | |||
Conversion of loans to foreclosed real estate | 1,317 | 418 | 3,691 |
Conversion of foreclosed real estate to loans | 58 | 338 | 68 |
Conversion of loans to repossessed assets | 128 | 79 | 265 |
Cash paid during the period for: | |||
Interest (net of interest credited) | 2,634 | 2,998 | 2,505 |
Income taxes | $ 4,429 | $ 3,513 | $ 2,736 |
Note 1_ Organization and Summar
Note 1: Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 1: Organization and Summary of Significant Accounting Policies | NOTE 1: 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 Companys consolidated balance sheet for the dates presented reflects the full impairment (that is, the difference between the securitys 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 income. 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 Reserve Bank and Federal Home Loan Bank Stock. Loans. Interest on loans is accrued based upon the principal amount outstanding. The accrual of interest on loans is discontinued when, in managements 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 managements 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 managements 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 managements 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 loans circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loans effective interest rate, the loans 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 loans 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 (purchased credit impaired loans), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). 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. Intangible Assets. Goodwill. 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 the managements 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 subsidiary. 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 participants beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. Stock Options. C Earnings Per Share. Comprehensive Income. Treasury Stock. Reclassification. The following paragraphs summarize the impact of new accounting pronouncements: In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-14, "Troubled Debt Restructurings by Creditors, to address the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs (e.g., FHA, VA, HUD). The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is reviewing the ASU, but does not expect adoption will result in a significant effect on the Companys consolidated financial statements. In January 2014, the FASB issued Accounting Standards Update (ASU) 2014-04, "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Companys consolidated financial statements. In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects, to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is reviewing the ASU, but does not expect adoption will result in a significant effect on the Companys consolidated financial statements. |
Note 2_ Available-for-sale Secu
Note 2: Available-for-sale Securities | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 2: Available-for-sale Securities | NOTE 2: Available-for-Sale Securities The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of securities available for sale consisted of the following: June 30, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Debt and equity securities: U.S. government and Federal agency obligations $14,924 $49 $(159) $14,814 Obligations of states and political subdivisions 40,641 1,473 (93) 42,021 Other securities 3,189 184 (669) 2,704 TOTAL DEBT AND EQUITY SECURITIES 58,754 1,706 (921) 59,539 Mortgage-backed securities: FHLMC certificates 24,371 228 (13) 24,586 GNMA certificates 2,230 18 - 2,248 FNMA certificates 32,391 282 (5) 32,668 CMOs issues by government agencies 10,491 69 (8) 10,552 TOTAL MORTGAGE-BACKED SECURITIES 69,483 597 (26) 70,054 TOTAL $128,237 $2,303 $(947) $129,593 June 30, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Debt and equity securities: U.S. government and Federal agency obligations $24,607 $21 $(554) $24,074 Obligations of states and political subdivisions 43,632 1,856 (131) 45,357 Other securities 3,294 264 (918) 2,640 TOTAL DEBT AND EQUITY SECURITIES 71,533 2,141 (1,603) 72,071 Mortgage-backed securities: FHLMC certificates 14,008 198 (18) 14,188 GNMA certificates 4,228 25 (4) 4,249 FNMA certificates 26,470 314 - 26,784 CMOs issues by government agencies 13,074 41 (185) 12,930 TOTAL MORTGAGE-BACKED SECURITIES 57,780 578 (207) 58,151 TOTAL $129,313 $2,719 $(1,810) $130,222 The amortized cost and fair value of available-for-sale 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 call or prepayment penalties. June 30, 2015 Estimated Amortized Fair (dollars in thousands) Cost Value Within one year $1,921 $1,926 After one year but less than five years 15,532 15,572 After five years but less than ten years 16,126 16,433 After ten years 25,175 25,608 Total investment securities 58,754 59,539 Mortgage-backed securities 69,483 70,054 Total investments and mortgage-backed securities $128,237 $129,593 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 $112.6 million and $81.9 million at June 30, 2015 and 2014, respectively. A gain of $6,228 and $116,164 was recognized from sales of available-for-sale securities in 2015 and 2014 respectively. There were no sales in 2013. With the exception of U.S. government agencies and corporations, the Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders equity at June 30, 2015. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2015, was $23.2 million, which is approximately 17.9% of the Companys available for sale investment portfolio, as compared to $39.5 million or approximately 30.3% of the Companys available for sale investment portfolio at June 30, 2014. Except as discussed below, management believes the declines in fair value for these securities to be temporary. The tables below 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 June 30, 2015 and 2014. Less than 12 months More than 12 months Total Unrealized Unrealized Unrealized For the year ended June 30, 2015 Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $2,970 $28 $6,862 $131 $9,832 $159 Obligations of state and political subdivisions 3,872 59 1,507 34 5,379 93 Other securities - - 1,206 669 1,206 669 Mortgage-backed securities 6,787 26 - - 6,787 26 Total investments and mortgage-backed securities $13,629 $113 $9,575 $834 $23,204 $947 Less than 12 months More than 12 months Total Unrealized Unrealized Unrealized For the year ended June 30, 2014 Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $2,676 $26 $18,451 $528 $21,127 $554 Obligations of state and political subdivisions 1,863 3 4,938 128 6,801 131 Other securities 476 2 532 916 1,008 918 Mortgage-backed securities 8,882 77 1,649 130 10,531 207 Total investments and mortgage-backed securities $13,897 $108 $25,570 $1,702 $39,467 $1,810 The unrealized losses on the Companys investments in U.S. government-sponsored enterprises, mortgage-backed securities, and obligations of state and political subdivisions were caused by increases in market interest rates. The contractual terms of these instruments do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investments. Because the Company does not intend to sell the investments and it is not more likely than not the Company will be required to sell the investments before recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at June 30, 2015. Other securities The June 30, 2015, 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%; no recoveries on issuers currently in default; recoveries of zero to 67 percent on currently deferred issuers within the next two years; new defaults of 50 basis points annually; and recoveries of 10% of new defaults. 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. Our cash flow analysis indicates that interest payments are expected to continue for these two securities. 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 June 30, 2015. For the last of these three securities, the Company is receiving PIK, in lieu of cash interest. Pooled trust preferred securities generally allow, under the terms of the issue, for issuers included in the pool to defer interest for up to five consecutive years. After five years, if not cured, the issuer is considered to be in default and the trustee may demand payment in full of principal and accrued interest. Issuers are also considered to be in default in the event of the failure of the issuer or a subsidiary bank. Both deferred and defaulted issuers are considered non-performing, and the trustee calculates, on a quarterly or semi-annual basis, certain coverage tests prior to the payment of cash interest to owners of the various tranches of the securities. The tests must show that performing collateral is sufficient to meet requirements for senior tranches, both in terms of cash flow and collateral value, before cash interest can be paid to subordinate tranches. If the tests are not met, available cash flow is diverted to pay down the principal balance of senior tranches until the coverage tests are met, before cash interest payments to subordinate tranches may resume. The Company is receiving PIK for this security due to failure of the required coverage tests described above at senior tranche levels of the security. The risk to holders of a tranche of a security in PIK status is that the pools total cash flow will not be sufficient to repay all principal and accrued interest related to the investment. The impact of payment of PIK to subordinate tranches is to strengthen the position of senior tranches, by reducing the senior tranches principal balances relative to available collateral and cash flow, while increasing principal balances, decreasing cash flow, and increasing credit risk to the tranches receiving PIK. For this security in receipt of PIK, the principal balance is increasing, cash flow has stopped, and, as a result, credit risk is increasing. The Company expects this security to remain in PIK status for a period of less than one year. Despite these facts, because the Company does not intend to sell this security and it is not more-likely-than-not that the Company will be required to sell this security prior to recovery of its amortized cost basis, which may be maturity, the Company does not consider this investment to be other-than-temporarily impaired at June 30, 2015. 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 June 30, 2015, 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 June 30, 2015, 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. As described above, one of the Companys investments in trust preferred securities experienced fair value deterioration due to credit losses, but is not otherwise other-than-temporarily impaired. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended June 30, 2015 and 2014. Accumulated Credit Losses Twelve-Month Period Ended (dollars in thousands) June 30, 2015 2014 Credit losses on debt securities held Beginning of period $375 $375 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 (10) - End of period $365 $375 |
Note 3_ Loans and Allowance For
Note 3: Loans and Allowance For Loan Losses | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 3: Loans and Allowance For Loan Losses | NOTE 3: Loans and Allowance for Loan Losses Classes of loans are summarized as follows: (dollars in thousands) June 30, 2015 June 30, 2014 Real Estate Loans: Residential $377,465 $303,901 Construction 69,204 40,738 Commercial 404,720 308,520 Consumer loans 46,770 35,223 Commercial loans 191,886 141,072 1,090,045 829,454 Loans in process (24,688) (19,261) Deferred loan fees, net 87 122 Allowance for loan losses (12,298) (9,259) Total loans $1,053,146 $801,056 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 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. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 20 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to five 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 five 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. 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 June 30, 2015, construction loans outstanding included 49 loans, totaling $8.2 million, for which a modification had been agreed to; At June 30, 2014, construction loans outstanding included 31 loans, totaling $13.1 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 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 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 June 30, 2015 and 2014, and activity in the allowance for loan losses for the fiscal years ended June 30, 2015, 2014, and 2013. (dollars in thousands) Residential Construction Commercial June 30, 2015 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $2,462 $355 $4,143 $519 $1,780 $9,259 Provision charged to expense 400 544 775 334 1,132 3,185 Losses charged off (54) - (9) (128) (50) (241) Recoveries 11 - 47 33 4 95 Balance, end of period $2,819 $899 $4,956 $758 $2,866 $12,298 Ending Balance: individually evaluated for impairment $- $- $- $- $160 $160 Ending Balance: collectively evaluated for impairment $2,819 $899 $4,956 $758 $2,706 $12,138 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $675 $675 Ending Balance: collectively evaluated for impairment $374,186 $42,655 $394,028 $46,560 $190,128 $1,047,557 Ending Balance: loans acquired with deteriorated credit quality $3,279 $1,861 $10,692 $210 $1,083 $17,125 (dollars in thousands) Residential Construction Commercial June 30, 2014 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $1,810 $273 $3,602 $472 $2,229 $8,386 Provision charged to expense 805 82 635 89 35 1,646 Losses charged off (169) - (95) (59) (579) (902) Recoveries 16 - 1 17 95 129 Balance, end of period $2,462 $355 $4,143 $519 $1,780 $9,259 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $2,462 $355 $4,143 $519 $1,780 $9,259 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $302,111 $21,477 $307,253 $35,223 $140,957 $807,021 Ending Balance: loans acquired with deteriorated credit quality $1,790 $- $1,267 $- $115 $3,172 (dollars in thousands) Residential Construction Commercial June 30, 2013 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $1,636 $243 $2,985 $484 $2,144 $7,492 Provision charged to expense 472 65 1,034 19 126 1,716 Losses charged off (302) (35) (422) (47) (49) (855) Recoveries 4 - 5 16 8 33 Balance, end of period $1,810 $273 $3,602 $472 $2,229 $8,386 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 allowance 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 provisions 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. The Company considers, as the primary quantitative factor in its allowance methodology, average net charge offs over the most recent twelve-month period. The Company also reviews average net charge offs over the most recent five-year period. 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-classified loans and is based on historical charge-off experience and expected loss given the internal risk rating process. The loan portfolio is stratified into homogeneous groups of loans that possess similar loss characteristics and an appropriate loss ratio adjusted for other 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 June 30, 2015 and 2014. 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: (dollars in thousands) Residential Construction Commercial June 30, 2015 Real Estate Real Estate Real Estate Consumer Commercial Pass $372,797 $44,383 $392,063 $46,513 $188,784 Watch 1,155 - 4,636 72 119 Special Mention - - - - - Substandard 3,513 133 8,021 185 2,983 Doubtful - - - - - Total $377,465 $44,516 $404,720 $46,770 $191,886 (dollars in thousands) Residential Construction Commercial June 30, 2014 Real Estate Real Estate Real Estate Consumer Commercial Pass $300,926 $21,477 $303,853 $35,046 $140,138 Watch 301 - 1,014 40 362 Special Mention - - - - - Substandard 2,674 - 3,653 137 572 Doubtful - - - - - Total $303,901 $21,477 $308,520 $35,223 $141,072 The above amounts include purchased credit impaired loans. At June 30, 2015, purchased credit impaired loans comprised $6.4 million of credits rated “Pass”; $4.0 million of credits rated “Watch”, none rated “Special Mention”, $6.7 million of credits rated “Substandard” and none rated “Doubtful”. At June 30, 2014, purchased credit impaired loans comprised $409,000 of credits rated “Pass”; none rated “Watch” or “Special Mention”; $2.7 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 June 30, 2015 and 2014. These tables include purchased credit impaired loans, which are reported according to aging analysis after acquisition based on the Company’s standards for such classification: (dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Total Loans Total Loans > 90 June 30, 2015 Past Due Past Due 90 Days Past Due Current Receivable Days & Accruing Real Estate Loans: Residential $1,143 $1,645 $439 $3,227 $374,238 $377,465 $- Construction 113 - 132 245 44,271 44,516 - Commercial 350 246 34 630 404,090 404,720 - Consumer loans 260 11 48 319 46,451 46,770 34 Commercial loans 375 127 30 532 191,354 191,886 11 Total loans $2,241 $2,029 $683 $4,953 $1,060,404 $1,065,357 $45 (dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Total Loans Total Loans > 90 June 30, 2014 Past Due Past Due 90 Days Past Due Current Receivable Days & Accruing Real Estate Loans: Residential $1,119 $51 $451 $1,621 $302,280 $303,901 $106 Construction 65 - - 65 21,412 21,477 - Commercial 1,025 - 18 1,043 307,477 308,520 18 Consumer loans 204 30 34 268 34,955 35,223 6 Commercial loans 101 431 347 879 140,193 141,072 - Total loans $2,514 $512 $850 $3,876 $806,317 $810,193 $130 At June 30, 2015 and 2014, no purchased credit impaired loans were greater than 90 days past due. 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 but also include loans modified in troubled debt restructurings (TDRs) 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 following tables present impaired loans (excluding loans in process and deferred loan fees) as of June 30, 2015 and 2014. 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 that, 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. (dollars in thousands) Recorded Unpaid Principal Specific June 30, 2015 Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,552 $3,814 $- Construction real estate 1,861 2,806 - Commercial real estate 12,772 14,602 - Consumer loans 245 241 - Commercial loans 1,340 1,437 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans 675 675 160 Total: Residential real estate $3,552 $3,814 $- Construction real estate $1,861 $2,806 $- Commercial real estate $12,772 $14,602 $- Consumer loans $245 $241 $- Commercial loans $2,015 $2,112 $160 (dollars in thousands) Recorded Unpaid Principal Specific June 30, 2014 Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $1,790 $2,068 $- Construction real estate - - - Commercial real estate 3,383 3,391 - Consumer loans - - - Commercial loans 115 115 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $1,790 $2,068 $- Construction real estate $- $- $- Commercial real estate $3,383 $3,391 $- Consumer loans $- $- $- Commercial loans $115 $115 $- The above amounts include purchased credit impaired loans. At June 30, 2015, purchased credit impaired loans comprised of $17.1 million of impaired loans without a specific valuation allowance; none with a specific valuation allowance, and $17.1 million of total impaired loans. At June 30, 2014, purchased credit impaired loans comprised $3.2 million of impaired loans without a specific valuation allowance; none with a specific valuation allowance, and $3.2 million of total impaired loans. The following tables present information regarding interest income recognized on impaired loans: Fiscal 2015 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $3,417 $219 Construction Real Estate 1,902 142 Commercial Real Estate 9,651 737 Consumer Loans 159 12 Commercial Loans 904 69 Total Loans $16,033 $1,179 Fiscal 2014 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $1,742 $197 Construction Real Estate - - Commercial Real Estate 1,306 131 Consumer Loans - - Commercial Loans 654 1 Total Loans $3,702 $329 Fiscal 2013 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $1,629 $375 Construction Real Estate - - Commercial Real Estate 2,069 254 Consumer Loans - - Commercial Loans 1,273 91 Total Loans $4,971 $720 Interest income on impaired loans recognized on a cash basis in the fiscal years ended June 30, 2015, 2014, and 2013 was immaterial. For the fiscal years ended June 30, 2015, 2014, and 2013, the amount of interest income recorded for impaired loans that represents a change in the present value of future cash flows attributable to the passage of time was approximately $139,000, $164,000, and $391,000, respectively. The following table presents the Company’s nonaccrual loans at June 30, 2015 and 2014. Purchased credit impaired loans are placed on nonaccrual status in the event the Company cannot reasonably estimate cash flows expected to be collected. The table excludes performing troubled debt restructurings. (dollars in thousands) June 30, 2015 June 30, 2014 Residential real estate $2,202 $444 Construction real estate 133 - Commercial real estate 1,271 673 Consumer loans 88 58 Commercial loans 63 91 Total loans $3,757 $1,266 The above amounts include purchased credit impaired loans. At June 30, 2015 and 2014, purchased credit impaired loans comprised $2.4 million and $0 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. At June 30, 2015, and June 30, 2014, the Company had $4.7 million and $2.9 million, respectively, of commercial real estate loans, $602,000 and $1.8 million, respectively, of residential real estate loans, and $1.3 million and $125,000, respectively, of commercial loans that were modified in TDRs and impaired. All loans classified as TDRs at June 30, 2015, and June 30, 2014, were so classified due to interest rate concessions. During Fiscal 2015, three commercial real estate loans totaling $1.7 million, two commercial loans totaling $1.2 million, and four residential real estate loans totaling $542,000 were modified as TDRs and had payment defaults subsequent to the modification. When loans modified as TDRs have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowance reflect amounts considered uncollectible. Performing loans classified as troubled debt restructurings at June 30, 2015 and June 30, 2014 segregated by class, are shown in the table below. Nonperforming TDRs are shown as nonaccrual loans. June 30, 2015 June 30, 2014 (dollars in thousands) Number of Recorded Number of Recorded modifications Investment modifications Investment Residential real estate 7 $602 6 $1,790 Construction real estate - - - - Commercial real estate 14 4,666 12 2,863 Consumer loans - - - - Commercial loans 3 1,280 2 125 Total 24 $6,548 20 $4,778 Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2015 and 2014, respectively: June 30, (dollars in thousands) 2015 2014 Beginning Balance $10,094 $10,318 Additions 3,925 4,806 Repayments (4,147) (5,030) Change in related party (450) - Ending Balance $9,422 $10,094 |
Note 4_ Accounting For Certain
Note 4: Accounting For Certain Loans Acquired in A Transfer | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 4: Accounting For Certain Loans Acquired in A Transfer | NOTE 4: 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 June 30, 2015 and June 30, 2014. The amount of these loans is shown below: June 30, (dollars in thousands) 2015 2014 Residential real estate $3,542 $2,068 Construction real estate 2,806 - Commercial real estate 12,523 1,276 Consumer loans 207 - Commercial loans 1,180 115 Outstanding balance $20,258 $3,459 Carrying amount, net of fair value adjustment of $3,132 and $287 at June 30, 2015 and June 30, 2014, respectively $17,126 $3,172 Accretable yield, or income expected to be collected, is as follows: June 30, (dollars in thousands) 2015 2014 Balance at beginning of period $380 $799 Additions (4) - Accretion (259) (281) Reclassification from nonaccretable difference 431 4 Disposals - (142) Balance at end of period $548 $380 During the fiscal years ended June 30, 2015 and 2014, the Company did not increase the allowance for the loan losses related to these purchased credit impaired loans. During the same periods, allowance for loan losses of $0 and $57,489, respectively, was reversed. |
Note 5_ Premises and Equipment
Note 5: Premises and Equipment | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 5: Premises and Equipment | NOTE 5: Premises and Equipment Following is a summary of premises and equipment: June 30, (dollars in thousands) 2015 2014 Land $9,848 $6,353 Buildings and improvements 26,393 18,308 Construction in progress 5,160 - Furniture, fixtures, and equipment 11,006 8,504 Automobiles 98 76 52,505 33,241 Less accumulated depreciation 12,779 10,774 $39,726 $22,467 Construction in progress at June 30, 2015, includes projects to provide a new corporate headquarters office in Poplar Bluff, and to finish leased space in a new branch facility in Springfield to replace an existing leased branch. The corporate headquarters is estimated at a cost of $11.2 million, of which $4.7 million has been paid through June 30, 2015, and is expected to be completed in March 2016. The Springfield leased space is estimated at a cost of $1.4 million, of which $441,000 has been paid through June 30, 2015, and is expected to be completed in November, 2015. |
Note 6_ Deposits
Note 6: Deposits | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 6: Deposits | NOTE 6: Deposits Deposits are summarized as follows: June 30, (dollars in thousands) 2015 2014 Non-interest bearing accounts $117,471 $68,113 NOW accounts 336,097 271,156 Money market deposit accounts 67,752 28,033 Savings accounts 131,884 95,327 TOTAL NON-MATURITY DEPOSITS $653,204 $462,629 Certificates 0.00-.99% 234,845 182,970 1.00-1.99% 124,608 107,467 2.00-2.99% 30,613 19,113 3.00-3.99% 5,987 13,522 4.00-4.99% - 100 5.00-5.99% 5,985 - TOTAL CERTIFICATES 402,038 323,172 TOTAL DEPOSITS $1,055,242 $785,801 The aggregate amount of deposits with a minimum denomination of $250,000 was $239.8 million and $171.7 million at June 30, 2015 and 2014, respectively. Certificate maturities are summarized as follows: (dollars in thousands) July 1, 2015 to June 30, 2016 $245,286 July 1, 2016 to June 30, 2017 67,285 July 1, 2017 to June 30, 2018 47,698 July 1, 2018 to June 30, 2019 13,058 July 1, 2019 to June 30, 2020 28,711 Thereafter - TOTAL $402,038 Deposits from executive officers, directors, significant shareholders and their affiliates (related parties) held by the Company at June 30, 2015 and 2014 totaled approximately $1.6 million and $2.4 million, respectively. |
Note 7_ Securities Sold Under A
Note 7: Securities Sold Under Agreements To Repurchase | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 7: Securities Sold Under Agreements To Repurchase | NOTE 7: Securities Sold Under Agreements to Repurchase Securities sold under agreements to repurchase, which are classified as borrowings, generally mature within one to four days. The following table presents balance and interest rate information on the securities sold under agreements to repurchase. The market value of the securities underlying the agreements at June 30, 2015 and 2014, was $27.3 million and $25.6 million, respectively. The securities underlying the agreements consist of marketable securities, including U.S. Government and Federal Agency Obligations, Mortgage-Backed Securities, and Collateralized Mortgage Obligations. The securities sold under agreements to repurchase are under the Companys control. June 30, (dollars in thousands) 2015 2014 Year-end balance $27,332 $25,561 Average balance during the year 25,443 24,492 Maximum month-end balance during the year 28,198 26,897 Average interest during the year 0.46% 0.54% Year-end interest rate 0.45% 0.50% |
Note 8_ Advances From Federal H
Note 8: Advances From Federal Home Loan Bank | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 8: Advances From Federal Home Loan Bank | NOTE 8: Advances from Federal Home Loan Bank Advances from Federal Home Loan Bank are summarized as follows: Call Date or June 30, Quarterly Interest 2015 2014 Maturity Thereafter Rate (dollars in thousands) 08/31/15 8/31/2015 4.80% $503 $523 11/29/16 8/31/2015 3.88% 5,000 5,000 11/29/16 8/31/2015 4.36% 5,000 5,000 09/28/17 9/28/2015 3.87% 5,303 - 11/20/17 8/20/2015 3.82% 3,000 3,000 11/27/17 8/27/2015 3.24% 5,248 - 11/29/17 8/31/2015 4.01% 2,500 2,500 01/08/18 7/08/2015 2.75% 5,203 - 08/13/18 8/12/2015 3.32% 537 549 08/14/18 8/14/2015 3.48% 4,000 4,000 08/14/18 8/14/2015 3.98% 5,000 5,000 Overnight 0.29% 23,500 - Overnight 0.28% - 59,900 TOTAL $64,794 $85,472 Weighted-average rate 2.46% 1.38% In addition to the above advances, the Bank had an available line of credit amounting to $307.4 million and $195.8 million with the FHLB at June 30, 2015 and 2014, respectively. Advances from FHLB of Des Moines are secured by FHLB stock and commercial real estate and one- to four-family mortgage loans pledged. To secure outstanding advances and the Banks line of credit, loans totaling $525.5 million and $396.4 million, respectively, were pledged to the FHLB at June 30, 2015 and 2014, respectively. The principal maturities of FHLB advances at June 30, 2015, are below: June 30, 2015 FHLB Advance Maturities (dollars in thousands) July 1, 2015 to June 30, 2016 $24,003 July 1, 2016 to June 30, 2017 10,000 July 1, 2017 to June 30, 2018 21,254 July 1, 2018 to June 30, 2019 9,537 July 1, 2019 to June 30, 2020 - July 1, 2020 to thereafter - TOTAL $64,794 |
Note 9_ Subordinated Debt
Note 9: Subordinated Debt | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 9: Subordinated Debt | NOTE 9: 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 June 30, 2015, the current rate was 3.03%. The securities represent undivided beneficial interests in the trust, which was established by Southern Missouri 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 Southern Missouri Bancorp. Southern Missouri Bancorp, Inc. 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 $2.5 million at June 30, 2015, and June 30, 2014. 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 PSCs 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 $4.9 million at June 30, 2015. |
Note 10_ Employee Benefits
Note 10: Employee Benefits | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 10: Employee Benefits | NOTE 10: Employee Benefits 401(k) Retirement Plan. Management Recognition Plan (MRP) The Board of Directors can terminate the MRP plan at any time, and if it does so, any shares not allocated will revert to the Company. The MRP expense for fiscal 2015, 2014, and 2013, was $13,000 for each year. At June 30, 2015, unvested compensation expense related to the MRP was approximately $26,000. Equity Incentive Plan The Board of Directors can terminate EIP awards at any time, and if it does so, any shares not allocated will revert to the Company. The EIP expense for fiscal 2015, 2014, and 2013 was $275,000, $202,000 and $159,000, respectively. At June 30, 2015, unvested compensation expense related to the EIP was approximately $721,000. Stock Option Plans As of June 30, 2015, there was $43,000 in remaining unrecognized compensation expense related to nonvested stock options, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of stock options outstanding at June 30, 2015, was $729,000, and the aggregate intrinsic value of stock options exercisable at June 30, 2015, was $685,000. During fiscal 2015, options to purchase 41,000 shares were exercised. The intrinsic value of these options, based on the Company’s closing stock price of $18.85, was $441,000. The intrinsic value of options vested in fiscal 2015, 2014, and 2013 was $115,000, $129,000, and $65,000, respectively. Changes in options outstanding were as follows: 2015 2014 2013 Weighted Weighted Weighted Average Average Average Price Number Price Number Price Number Outstanding at beginning of year $7.29 100,000 $7.42 168,800 $7.44 182,000 Granted 17.55 10,000 - - - - Exercised 8.10 (41,000) 7.62 (68,800) 7.62 (13,200) Forfeited - - - - - - Outstanding at year-end $8.28 69,000 $7.29 100,000 $7.42 168,800 Options exercisable at year-end $6.39 55,000 $7.10 86,000 $7.35 142,800 The following is a summary of the assumptions used in the Black-Scholes pricing model in determining the fair values of options granted during fiscal year 2015. (No options were granted in fiscal 2014 or 2013): 2015 2014 2013 Assumptions: Expected dividend yield 1.94% - - Expected volatility 22.48% - - Risk-free interest rate 2.46% - - Weighted-average expected life (years) 10.00 - - Weighted average fair value of options granted during the year $ 4.29 - - The table below summarizes information about stock options outstanding under the plan at June 30, 2015: Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Contractual Number Exercise Number Exercise Life Outstanding Price Exercisable Price 2.4 mo. 5,000 $7.13 5,000 $7.13 40.6 mo. 10,000 6.08 10,000 6.08 54.6 mo. 40,000 6.38 40,000 6.38 76.7 mo. 4,000 11.18 - 11.18 110.3 mo. 10,000 17.55 - 17.55 |
Note 11_ Income Taxes
Note 11: Income Taxes | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 11: Income Taxes | NOTE 11: 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 tax examinations by tax authorities for years before 2011. The Company recognized no interest or penalties related to income taxes. The components of net deferred tax assets are summarized as follows: (dollars in thousands) June 30, 2015 June 30, 2014 Deferred tax assets: Provision for losses on loans $5,037 $3,696 Accrued compensation and benefits 538 450 Other-than-temporary impairment on available for sale securities 137 141 NOL carry forwards acquired 768 853 Minimum Tax Credit 130 130 Unrealized loss on other real estate 6 38 Other 319 - Total deferred tax assets 6,935 5,308 Deferred tax liabilities: FHLB stock dividends 39 157 Purchase accounting adjustments 1,985 1,533 Depreciation 992 767 Prepaid expenses 81 250 Unrealized gain on available for sale securities 502 336 Other - 164 Total deferred tax liabilities 3,599 3,207 Net deferred tax (liability) asset $3,336 $2,101 As of June 30, 2015, the Company had approximately $1.8 million and $5.2 million in federal and state net operating loss carryforwards respectively 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 the 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 Company’s actual income tax expense is shown below: For the year ended June 30 (dollars in thousands) 2015 2014 2013 Tax at statutory rate $6,903 $4,701 $4,767 Increase (reduction) in taxes resulting from: Nontaxable municipal income (530) (524) (506) State tax, net of Federal benefit 523 296 336 Cash surrender value of Bank-owned life insurance (193) (184) (173) Tax credit benefits (364) (391) (342) Other, net (283) (153) (128) Actual provision $6,056 $3,745 $3,954 Tax credit benefits are recognized under the flow-through method of accounting for investments in tax credits. |
Note 12_ Accumulated Other Comp
Note 12: Accumulated Other Comprehensive Income | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 12: Accumulated Other Comprehensive Income | NOTE 12: Accumulated Other Comprehensive Income (AOCI) The components of AOCI, included in stockholders equity, are as follows: June 30, (dollars in thousands) 2015 2014 Net unrealized gain (loss) on securities available-for-sale $1,200 $694 Net unrealized gain (loss) on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income 156 214 Unrealized gain from defined benefit pension plan 11 25 1,367 933 Tax effect (506) (345) Net of tax amount $861 $588 Amounts reclassified from AOCI and the affected line items in the statements of income during the years ended June 30, 2015 and 2014, were as follows: Amounts Reclassified From AOCI (dollars in thousands) 2015 2014 Affected Line Item in the Condensed Consolidated Statements of Income Unrealized gain (loss) on securities available-for-sale $6 $116 Net realized gains on sale of AFS securities Amortization of defined benefit pension items: (14) (12) Compensation and benefits (included in computation of net periodic pension costs) Total reclassified amount before tax (8) 104 Tax (benefit) expense (3) 38 Provision for Income Tax Total reclassification out of AOCI $(5) $66 Net Income |
Note 13_ Stockholders' Equity a
Note 13: Stockholders' Equity and Regulatory Capital | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 13: Stockholders' Equity and Regulatory Capital | NOTE 13: Stockholders Equity and Regulatory Capital The Company and Bank are subject to various regulatory capital requirements administered by the Federal banking agencies. Failure to meet minimum capital requirements can result in certain mandatoryand possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Companys financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company and the Banks assets, liabilities, and certain off-balance sheet items as calculated under U.S. GAAP, regulatory reporting requirements and regulatory capital standards. The Company and Banks capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Furthermore, the Company and Banks regulators could require adjustments to regulatory capital not reflected in the condensed consolidated financial statements. Quantitative measures established by regulatory capital standards to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total capital, Tier 1 capital (as defined), and common equity Tier 1 capital (as defined) to risk-weighted assets (as defined) and of Tier 1 capital (as defined) to average total assets (as defined). Management believes, as of June 30, 2015 and 2014, that the Company and the Bank met all capital adequacy requirements to which they are subject. In July 2013, the Federal banking agencies announced their approval of the final rule to implement the Basel III regulatory reforms, among other changes required by the Dodd-Frank Wall Street Reform and Consumer Protection Act. The approved rule included a new minimum ratio of common equity Tier 1 (CET1) capital of 4.5%, raised the minimum ratio of Tier 1 capital to risk-weighted assets from 4.0% to 6.0%, and included a minimum leverage ratio of 4.0% for all banking institutions. Additionally, the rule created a capital conservation buffer of 2.5% of risk-weighted assets, and prohibited banking organizations from making distributions or discretionary bonus payments during any quarter if its eligible retained income is negative, if the capital conservation buffer is not maintained. This new capital conservation buffer requirement is be phased in beginning in January 2016 at 0.625% of risk-weighted assets and increasing each year until fully implemented in January 2019. The phase-in of the enhanced capital requirements for banking organizations such as the Company and the Bank began January 1, 2015. Other changes included revised risk-weighting of some assets, stricter limitations on mortgage servicing assets and deferred tax assets, and replacement of the ratings-based approach to risk weight securities. As of June 30, 2015, the most recent notification from the Federal banking agencies categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well capitalized the Bank must maintain minimum total risk-based, Tier 1 risk-based, common equity Tier 1 risk-based, and Tier 1 leverage ratios as set forth in the table. There are no conditions or events since that notification that management believes have changed the Banks category. The tables below summarize the Company and Banks actual and required regulatory capital: Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions As of June 30, 2015 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $154,171 14.22% $86,708 8.00% n/a n/a Southern Bank 149,744 13.82% 86,708 8.00% 108,384 10.00% Tier I Capital (to Risk-Weighted Assets) Consolidated 141,168 13.02% 65,031 6.00% n/a n/a Southern Bank 136,741 12.62% 65,031 6.00% 86,708 8.00% Tier I Capital (to Average Assets) Consolidated 141,168 10.98% 51,412 4.00% n/a n/a Southern Bank 136,741 10.65% 51,362 4.00% 64,203 5.00% Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 107,040 9.88% 57,838 4.50% n/a n/a Southern Bank 136,741 12.62% 57,783 4.50% 83,464 6.50% Actual For Capital Adequacy Purposes To Be Well Capitalized Under Prompt Corrective Action Provisions As of June 30, 2014 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $125,930 16.38% $61,522 8.00% n/a n/a Southern Bank 114,811 15.07% 60,968 8.00% 76,211 10.00% Tier I Capital (to Risk-Weighted Assets) Consolidated 116,314 15.12% 30,762 4.00% n/a n/a Southern Bank 105,281 13.81% 30,484 4.00% 45,726 6.00% Tier I Capital (to Average Assets) Consolidated 116,314 11.71% 39,743 4.00% n/a n/a Southern Bank 105,281 10.69% 39,379 4.00% 49,224 5.00% The Banks ability to pay dividends on its common stock to the Company is restricted to maintain adequate capital as shown in the above tables. Additionally, prior regulatory approval is required for the declaration of any dividends generally in excess of the sum of net income for that calendar year and retained net income for the preceding two calendar years. At June 30, 2015, approximately $11.9 million of the equity of the Bank was available for distribution as dividends to the Company without prior regulatory approval. In July 2014, the Bank declared and paid to the Company a special dividend of $10.0 million to facilitate the Companys acquisition of Peoples Service Company. |
Note 14_ Small Business Lending
Note 14: Small Business Lending Fund Implemented by The U.s. Treasury | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 14: Small Business Lending Fund Implemented by The U.s. Treasury | NOTE 14: Small Business Lending Fund Implemented by the U.S. Treasury On July 21, 2011, as part of the Small Business Lending Fund (SBLF) of the United States Department of the Treasury (Treasury), the Company entered into a Small Business Lending Fund-Securities Purchase Agreement (Purchase Agreement) with the Secretary of the Treasury, pursuant to which the Company (i) sold 20,000 shares of the Companys Senior Non-Cumulative Perpetual Preferred Stock, Series A (SBLF Preferred Stock) to the Secretary of the Treasury for a purchase price of $20,000,000. The SBLF Preferred Stock was issued pursuant to the SBLF program, a $30 billion fund established under the Small Business Jobs Act of 2010 that was created to encourage lending to small business by providing capital to qualified community banks with assets of less than $10 billion. The SBLF Preferred Stock qualifies as Tier 1 capital. The SBLF Preferred Stock is entitled to receive non-cumulative dividends, payable quarterly, on each January 1, April 1, July 1 and October 1, beginning October 1, 2011. The dividend rate, as a percentage of the liquidation amount, can fluctuate on a quarterly basis during the first 10 quarters during which the SBLF Preferred Stock is outstanding, based upon changes in the Banks level of Qualified Small Business Lending (QBSL), as defined in the Purchase Agreement. Based upon the increase in the Banks level of QBSL over the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period was set at 2.8155%. For the second through ninth calendar quarters, the dividend rate may be adjusted to between one percent (1%) and five percent (5%) per annum, to reflect the amount of change in the Banks level of QBSL. The dividend rate for the quarter ended June 30, 2015, was 1%. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed at between one percent (1%) and seven percent (7%) based upon the increase in QBSL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to 9% (including a quarterly lending incentive fee of 0.5%). The SBLF Preferred Stock is non-voting, except in limited circumstances. In the event that the Company misses five dividend payments, the holder of the SBLF Preferred Stock will have the right to appoint a representative as an observer on the Companys Board of Directors. In the event that the Company misses six dividend payments, the holder of the SBLF Preferred Stock will have the right to designate two directors to the Board of Directors of the Company. The SBLF Preferred Stock may be redeemed at any time at the Companys option, at a redemption price of 100% of the liquidation amount plus accrued but unpaid dividends to the date of redemption for the current period, subject to the approval of its federal banking regulator. As required by the Purchase Agreement, $9,635,000 of the proceeds from the sale of the SBLF Preferred Stock was used to redeem the 9,550 shares of the Companys Fixed Rate Cumulative Perpetual Preferred Stock, Series A issued in 2008 to the Treasury in the Troubled Asset Relief Program (TARP), plus the accrued dividends owed on those preferred shares. As part of the 2008 TARP transaction, the Company had issued a ten-year warrant to Treasury to purchase 228,652 shares (split-adjusted) of the Companys common stock at an exercise price (split-adjusted) of $6.27 per share. The Company repurchased the warrant on May 29, 2015, for $2.7 million. Immediately prior to repurchase, the warrant had been exercisable for the purchase of 231,891 shares (split-adjusted) at an exercise price of $6.18 per share. |
Note 15_ Commitments and Credit
Note 15: Commitments and Credit Risk | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 15: Commitments and Credit Risk | NOTE 15: Commitments and Credit Risk Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Company had total outstanding standby letters of credit amounting to $2.6 million at June 30, 2015, and $3.4 million at June 30, 2014, with terms ranging from 12 to 24 months. At June 30, 2015, the Companys deferred revenue under standby letters of credit agreements was nominal. Off-balance-sheet and Credit Risk These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customers creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on managements credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on balance sheet instruments. The Company had $130.6 million in commitments to extend credit at June 30, 2015, and $112.8 million at June 30, 2014. At June 30, 2015, total commitments to originate fixed-rate loans with terms in excess of one year were $16.8 million at rates ranging from 2.95% to 10.50%, with a weighted-average rate of 4.56%. Commitments to extend credit and standby letters of credit include exposure to some credit loss in the event of nonperformance of the customer. The Companys policies for credit commitments and financial guarantees are the same as those for extension of credit that are recorded in the balance sheet. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period. The Company originates collateralized commercial, real estate, and consumer loans to customers in Missouri and Arkansas. Although the Company has a diversified portfolio, loans aggregating $435.0 million at June 30, 2015, are secured by single and multi-family residential real estate generally located in the Companys primary lending area. |
Note 16_ Earnings Per Share
Note 16: Earnings Per Share | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 16: Earnings Per Share | NOTE 16: Earnings Per Share The following table sets forth the computations of basic and diluted earnings per common share: Year Ended June 30, (dollars in thousands except per share data) 2015 2014 2013 Net income $13,668 $10,081 $10,067 Less: Effective dividend on preferred shares 200 200 345 Net income available to common stockholders $13,468 $9,881 $9,722 Denominator for basic earnings per share - Weighted-average shares outstanding 7,337,437 6,616,360 6,582,880 Effect of dilutive securities stock options 169,795 184,054 168,226 Denominator for diluted earnings per share 7,507,232 6,800,414 6,751,106 Basic earnings per share available to common stockholders $1.84 $1.49 $1.48 Diluted earnings per share available to common stockholders $1.79 $1.45 $1.44 |
Note 17_ Acquisitions
Note 17: Acquisitions | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 17: Acquisitions | NOTE 17: Acquisitions On August 5, 2014, the Company completed its acquisition of Peoples Service Company (PSC) and its subsidiary, Peoples Bank of the Ozarks (Peoples), Nixa, Missouri. Peoples was merged into the Companys bank subsidiary, Southern Bank, in early December, 2014, in connection with the conversion of Peoples data system. The Company acquired Peoples primarily for the purpose of conducting commercial banking activities in markets where it believes the Companys business model will perform well, and for the long-term value of its core deposit franchise. Through June 30, 2015, the Company incurred $678,000 in third-party acquisition-related costs. Expenses totaling $528,000 are included in noninterest expense in the Companys consolidated statement of income for the year ended June 30, 2015, compared to $150,000 for the year ended June 30, 2014. Notes payable of $2.9 million were contractually required to be repaid on the date of acquisition. The goodwill of $3.0 million arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of the Company and Peoples. Goodwill from this transaction was assigned to the acquisition of the bank holding company, and is not expected to be deductible for tax purposes. The following table summarizes the consideration paid for PSC and Peoples, and the amounts of assets acquired and liabilities assumed recognized at the acquisition date: Peoples Service Company Fair Value of Consideration Transferred (dollars in thousands) Cash $12,094 Common stock, at fair value 12,331 Total consideration $24,425 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $18,236 Interest bearing time deposits 9,950 Investment securities 31,257 Loans 190,445 Premises and equipment 11,785 Identifiable intangible assets 3,000 Miscellaneous other assets 4,045 Deposits (221,887) Advances from FHLB (16,038) Subordinated debt (4,844) Miscellaneous other liabilities (1,558) Notes Payable (2,921) Total identifiable net assets 21,470 Goodwill $2,955 The following unaudited pro forma condensed financial information presents the results of operations of the Company, including the effects of the purchase accounting adjustments and acquisition expenses, had the acquisition taken place at the beginning of the period: For the year ended June 30, 2015 2014 (dollars in thousands except per share data) Interest income $56,368 $52,734 Interest expense 8,864 8,907 Net interest income 47,504 43,827 Provision for loan losses 3,185 1,646 Noninterest income 8,774 7,449 Noninterest expense 34,066 33,159 Income before income taxes 19,027 16,471 Income taxes 5,982 4,743 Net income 13,045 11,728 Dividends on preferred shares 200 200 Net income available to common stockholders $12,845 $11,528 Earnings per share Basic $1.72 $1.58 Diluted $1.70 $1.61 Basic weighted average shares outstanding - split adjusted 7,469,027 7,308,146 Diluted weighted average shares outstanding - split adjusted 7,573,027 7,146,307 |
Note 18_ Fair Value Measurement
Note 18: Fair Value Measurements | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 18: Fair Value Measurements | NOTE 18: Fair Value Measurements ASC Topic 820, Fair Value Measurements, defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. Topic 820 also establishes a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. The standard describes three levels of inputs that may be used to measure fair value: Level 1 Level 2 Level 3 Recurring Measurements . The following table presents the fair value measurements of assets recognized in the accompanying consolidated balance sheets measured at fair value on a recurring basis and the level within the fair value hierarchy in which the fair value measurements fall at June 30, 2015 and 2014: Fair Value Measurements at June 30, 2015 (dollars in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $14,814 $- $14,814 $- State and political subdivisions 42,021 - 42,021 - Other securities 2,704 - 2,478 226 Mortgage-backed GSE residential 70,054 - 70,054 - Fair Value Measurements at June 30, 2014, Using: (dollars in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $24,074 $- $24,074 $- State and political subdivisions 45,357 - 45,357 - Other securities 2,640 - 2,507 133 Mortgage-backed GSE residential 58,151 - 58,151 - 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 year ended June 30, 2015. 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. 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 years ended June 30, 2015 and 2014: (dollars in thousands) 2015 2014 Available-for-sale securities, beginning of period $133 $73 Total unrealized gain (loss) included in comprehensive income 93 60 Transfer from Level 2 to Level 3 - - Available-for-sale securities, end of period $226 $133 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 June 30, 2015 and 2014: Fair Value Measurements at June 30, 2015 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) Impaired loans (collateral dependent) $515 $- $- $515 Foreclosed and repossessed assets held for sale 4,504 - - 4,504 Fair Value Measurements at June 30, 2014, 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) Impaired loans (collateral dependent) $- $- $- $- Foreclosed and repossessed assets held for sale 2,977 - - 2,977 The following table presents gains and (losses) recognized on assets measured on a non-recurring basis for the years ended June 30, 2015 and 2014: (dollars in thousands) 2015 2014 Impaired loans (collateral dependent) $(160) $77 Foreclosed and repossessed assets held for sale (92) (264) Total gains (losses) on assets measured on a non-recurring basis $(252) $(187) 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 pursuant to the valuation hierarch. For assets classified within Level 3 of fair value hierarchy, the process used to develop the reported fair value process is described below. Impaired Loans (Collateral Dependent) On a quarterly basis, loans classified as special mention, substandard, doubtful, or loss are evaluated including the loan officers review of the collateral and its current condition, the Companys knowledge of the current economic environment in the market where the collateral is located, and the Companys recent experience with real estate in the area. The date of the appraisal is also considered in conjunction with the economic environment and any decline in the real estate market since the appraisal was obtained. For all loan types, updated appraisals are obtained if considered necessary. Of the Companys $17.1 million (carrying value) in impaired loans (collateral-dependent and purchased credit-impaired), excluding performing TDRs at June 30, 2015, the Company utilized a real estate appraisal more than 12 months old to serve as the primary basis of our valuation for impaired loans with a carrying value of approximately $16.1 million. The remaining $1.0 million was secured by machinery, equipment and accounts receivable. In instances where the economic environment has worsened and/or the real estate market declined since the last appraisal, a higher distressed sale discount would be applied to the appraised value. The Company records collateral dependent impaired loans based on nonrecurring Level 3 inputs. If a collateral dependent loans fair value, as estimated by the Company, is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a specific reserve as part of the allowance for loan losses. Foreclosed and Repossessed Assets Held for Sale Unobservable (Level 3) Inputs Range of Weighted- Fair value at Valuation Unobservable Discounts average June 30, 2015 technique inputs applied discount applied Recurring Measurements Available-for-sale securities (pooled trust preferred security) $226 Discounted cash flow Discount rate n/a 11.3% Annual prepayment rate n/a 1.0% Projected defaults and deferrals (% of pool balance) n/a 32.1% Anticipated recoveries (% of pool balance) n/a 6.1% Nonrecurring Measurements Impaired loans (collateral dependent) 515 Internal valuation of closely-held stock Discount to reflect realizable value n/a 28.7% Foreclosed and repossessed assets 4,504 Third party appraisal Marketability discount 0.0 76.0% 33.4% Range of Weighted- Fair value at Valuation Unobservable Discounts average June 30, 2014 technique inputs applied discount applied Recurring Measurements Available-for-sale securities $133 Discounted cash flow Discount rate n/a 15.6% Prepayment rate n/a 1% Projected defaults and deferrals (% of pool balance) n/a 38.8% Anticipated recoveries (% of pool balance) n/a 1.0% Nonrecurring Measurements Foreclosed and repossessed assets 2,977 Third party appraisal Marketability discount 0.0 - 76.4% 14.9% Fair Value of Financial Instruments June 30, 2015 Quoted Prices in Active Significant Markets for Significant Other Unobservable (dollars in thousands) Carrying Identical Assets Observable Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $16,775 $16,775 $- $- Interest-bearing time deposits 1,944 - 1,944 - Stock in FHLB 4,127 - 4,127 - Stock in Federal Reserve Bank of St. Louis 2,340 - 2,340 - Loans receivable, net 1,053,146 - - 1,057,677 Accrued interest receivable 5,168 - 5,168 - Financial liabilities Deposits 1,055,242 653,294 - 401,820 Securities sold under agreements to repurchase 27,332 - 27,332 - Advances from FHLB 64,794 23,500 42,870 - Accrued interest payable 777 - 777 - Subordinated debt 14,658 - - 12,290 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - June 30, 2014 Quoted Prices in Active Significant Markets for Significant Other Unobservable (dollars in thousands) Carrying Identical Assets Observable Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $14,932 $14,932 $- $- Interest-bearing time deposits 1,655 - 1,655 - Stock in FHLB 4,569 - 4,569 - Stock in Federal Reserve Bank of St. Louis 1,424 - 1,424 - Loans receivable, net 801,056 - - 805,543 Accrued interest receivable 4,402 - 4,402 - Financial liabilities Deposits 785,801 462,629 - 323,512 Securities sold under agreements to repurchase 25,561 - 25,561 - Advances from FHLB 85,472 59,900 27,714 - Accrued interest payable 570 - 570 - Subordinated debt 9,727 - - 8,059 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, interest-bearing time deposits, accrued interest receivable, and accrued interest payable 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 19_ Significant Estimates
Note 19: Significant Estimates | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 19: Significant Estimates | NOTE 19: Significant Estimates Accounting principles generally accepted in the United States of America require disclosure of certain significant estimates and current vulnerabilities due to certain concentrations. Estimates related to the allowance for loan losses are described in Note 1. |
Note 20_ Condensed Parent Compa
Note 20: Condensed Parent Company Only Financial Statements | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 20: Condensed Parent Company Only Financial Statements | NOTE 20: Condensed Parent Company Only Financial Statements The following condensed balance sheets, statements of income and comprehensive income and cash flows for Southern Missouri Bancorp, Inc. should be read in conjunction with the consolidated financial statements and the notes thereto: (dollars in thousands) June 30 Condensed Balance Sheets 2015 2014 Assets Cash and cash equivalents $902 $5,700 Other assets 8,365 6,856 Investment in common stock of Bank 138,583 108,332 TOTAL ASSETS $147,850 $120,888 Liabilities and Stockholder's Equity Accrued expenses and other liabilities $549 $50 Subordinated debt 14,658 9,727 TOTAL LIABILITIES 15,207 9,777 Stockholder's equity 132,643 111,111 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $147,850 $120,888 (dollars in thousands) Year ended June 30, Condensed Statements of Income 2015 2014 2013 Interest income $115 $255 $311 Interest expense 512 305 227 Net interest income (expense) (397) (50) 84 Dividends from Bank 13,200 3,000 3,000 Operating expenses 940 1,141 369 Income before income taxes and equity in undistributed income of the Bank 11,863 1,809 2,715 Income tax benefit 463 444 107 Income before equity in undistributed income of the Bank 12,326 2,253 2,822 Equity in undistributed income of the Bank 1,342 7,828 7,245 NET INCOME $13,668 $10,081 $10,067 COMPREHENSIVE INCOME $13,941 $10,848 $9,188 (dollars in thousands) Year ended June 30, Condensed Statements of Cash Flow 2015 2014 2013 Cash Flows from operating activities: Net income $13,668 $10,081 $10,067 Changes in: Equity in undistributed income of the Bank (1,342) (7,828) (7,245) Other adjustments, net 78 65 483 NET CASH PROVIDED BY OPERATING ACTIVITES 12,404 2,318 3,305 Cash flows from investing activities: Proceeds from loan participations 2,593 3,913 215 Proceeds from sale of real estate - 849 - Purchases of premises and equipment - (3,257) - Investments in Bank subsidiaries (11,774) (11,988) - Retirement of debt in acquisitions (2,936) (692) - Investments in state and federal tax credits - (225) - NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (12,117) (11,400) 215 Cash flows from financing activities: Dividends on preferred stock (200) (200) (412) Dividends on common stock (2,517) (2,119) (1,975) Exercise of stock options 332 524 101 Redemption of preferred stock (2,700) - - NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (5,085) (1,795) (2,286) Net increase (decrease) in cash and cash equivalents (4,798) (10,877) 1,234 Cash and cash equivalents at beginning of year 5,700 16,577 15,343 CASH AND CASH EQUIVALENTS AT END OF YEAR $902 $5,700 $16,577 |
Note 21_ Quarterly Financial Da
Note 21: Quarterly Financial Data (unaudited) | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Note 21: Quarterly Financial Data (unaudited) | NOTE 21: Quarterly Financial Data (Unaudited) Quarterly operating data is summarized as follows (in thousands): June 30, 2015 (dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $13,219 $14,357 $13,909 $13,816 Interest expense 2,090 2,195 2,211 2,270 Net interest income 11,129 12,162 11,698 11,546 Provision for loan losses 827 862 837 659 Noninterest income 1,980 2,187 2,094 2,398 Noninterest expense 7,602 8,590 8,091 8,002 Income before income taxes 4,680 4,897 4,864 5,283 Income tax expense 1,381 1,460 1,497 1,718 NET INCOME $3,299 $3,437 $3,367 $3,565 June 30, 2014 (dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $9,165 $10,238 $10,316 $10,752 Interest expense 1,792 1,907 1,882 1,904 Net interest income 7,373 8,331 8,434 8,848 Provision for loan losses 500 295 253 598 Noninterest income 1,280 1,666 1,462 1,724 Noninterest expense 4,567 6,226 6,619 6,234 Income before income taxes 3,586 3,476 3,024 3,740 Income tax expense 1,023 957 781 984 NET INCOME $2,563 $2,519 $2,243 $2,756 June 30, 2013 (dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $9,362 $9,198 $8,756 $8,975 Interest expense 1,942 1,867 1,864 1,828 Net interest income 7,420 7,331 6,892 7,147 Provision for loan losses 611 462 228 415 Noninterest income 1,060 1,118 1,144 1,146 Noninterest expense 4,138 4,441 4,441 4,501 Income before income taxes 3,731 3,546 3,367 3,377 Income tax expense 1,141 1,065 901 847 NET INCOME $2,590 $2,481 $2,466 $2,530 |
Note 1_ Organization and Summ30
Note 1: Organization and Summary of Significant Accounting Policies: Business Description and Basis of Presentation (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Business Description and Basis of Presentation | 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 1_ Organization and Summ31
Note 1: Organization and Summary of Significant Accounting Policies: Principles of Consolidation Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Principles of Consolidation Policy | Principles of Consolidation. |
Note 1_ Organization and Summ32
Note 1: Organization and Summary of Significant Accounting Policies: Use of Estimates Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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 1_ Organization and Summ33
Note 1: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Cash and Cash Equivalents, Policy | Cash and Cash Equivalents. |
Note 1_ Organization and Summ34
Note 1: Organization and Summary of Significant Accounting Policies: Interest Bearing Time Deposits Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Interest Bearing Time Deposits Policy | Interest-bearing Time Deposits. |
Note 1_ Organization and Summ35
Note 1: Organization and Summary of Significant Accounting Policies: Marketable Securities, Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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 Companys consolidated balance sheet for the dates presented reflects the full impairment (that is, the difference between the securitys 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 income. 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 1_ Organization and Summ36
Note 1: Organization and Summary of Significant Accounting Policies: Federal Reserve Bank and Federal Home Loan Bank Stock Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Federal Reserve Bank and Federal Home Loan Bank Stock Policy | Federal Reserve Bank and Federal Home Loan Bank Stock. |
Note 1_ Organization and Summ37
Note 1: Organization and Summary of Significant Accounting Policies: Loans Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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 managements 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 managements 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 managements 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 managements 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 loans circumstances, we measure impairment of a loan based upon either the present value of expected future cash flows discounted at the loans effective interest rate, the loans 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 loans 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 (purchased credit impaired loans), the Company recorded a fair value discount and began carrying them at book value less their face amount (see Note 4). 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 1_ Organization and Summ38
Note 1: Organization and Summary of Significant Accounting Policies: Foreclosed Real Estate Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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 1_ Organization and Summ39
Note 1: Organization and Summary of Significant Accounting Policies: Property, Plant and Equipment, Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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 1_ Organization and Summ40
Note 1: Organization and Summary of Significant Accounting Policies: Intangible Assets Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Intangible Assets Policy | Intangible Assets. |
Note 1_ Organization and Summ41
Note 1: Organization and Summary of Significant Accounting Policies: Goodwill Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Goodwill Policy | Goodwill. |
Note 1_ Organization and Summ42
Note 1: Organization and Summary of Significant Accounting Policies: Income Tax, Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
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 the managements 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 subsidiary. |
Note 1_ Organization and Summ43
Note 1: Organization and Summary of Significant Accounting Policies: Share-based Compensation, Option and Incentive Plans Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Share-based Compensation, Option and Incentive Plans Policy | Incentive Plan. |
Note 1_ Organization and Summ44
Note 1: Organization and Summary of Significant Accounting Policies: Outside Directors' Retirement Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Outside Directors' Retirement Policy | Outside Directors Retirement. In the event that the participant dies before collecting any or all of the benefits, the Bank shall pay the participants beneficiary. No benefits shall be payable to anyone other than the beneficiary, and shall terminate on the death of the beneficiary. |
Note 1_ Organization and Summ45
Note 1: Organization and Summary of Significant Accounting Policies: Stock Options Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Stock Options Policy | Stock Options. C |
Note 1_ Organization and Summ46
Note 1: Organization and Summary of Significant Accounting Policies: Earnings Per Share, Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Earnings Per Share, Policy | Earnings Per Share. |
Note 1_ Organization and Summ47
Note 1: Organization and Summary of Significant Accounting Policies: Comprehensive Income, Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Comprehensive Income, Policy | Comprehensive Income. |
Note 1_ Organization and Summ48
Note 1: Organization and Summary of Significant Accounting Policies: Treasury Stock Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Treasury Stock Policy | Treasury Stock. |
Note 1_ Organization and Summ49
Note 1: Organization and Summary of Significant Accounting Policies: Reclassification Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Reclassification Policy | Reclassification. |
Note 1_ Organization and Summ50
Note 1: Organization and Summary of Significant Accounting Policies: The Following Paragraphs Summarize The Impact of New Accounting Pronouncements (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
The Following Paragraphs Summarize The Impact of New Accounting Pronouncements: | The following paragraphs summarize the impact of new accounting pronouncements: In August 2014, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2014-14, "Troubled Debt Restructurings by Creditors, to address the classification of certain foreclosed mortgage loans held by creditors that are either fully or partially guaranteed under government programs (e.g., FHA, VA, HUD). The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is reviewing the ASU, but does not expect adoption will result in a significant effect on the Companys consolidated financial statements. In January 2014, the FASB issued Accounting Standards Update (ASU) 2014-04, "Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure, to reduce diversity by clarifying when a creditor should be considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan such that the loan receivable should be derecognized and the real estate property recognized. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. Adoption of the ASU is not expected to have a significant effect on the Companys consolidated financial statements. In January 2014, the FASB issued ASU 2014-01, "Accounting for Investments in Qualified Affordable Housing Projects, to permit entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. The ASU modifies the conditions that an entity must meet to be eligible to use a method other than the equity or cost methods to account for qualified affordable housing project investments. The ASU is effective for fiscal years, and interim periods within those years, beginning after December 15, 2014. The Company is reviewing the ASU, but does not expect adoption will result in a significant effect on the Companys consolidated financial statements. |
Note 2_ Available-for-sale Se51
Note 2: Available-for-sale Securities: Marketable Securities Available for Sale Securities Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Marketable Securities Available for Sale Securities 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 $112.6 million and $81.9 million at June 30, 2015 and 2014, respectively. A gain of $6,228 and $116,164 was recognized from sales of available-for-sale securities in 2015 and 2014 respectively. There were no sales in 2013. With the exception of U.S. government agencies and corporations, the Company did not hold any securities of a single issuer, payable from and secured by the same source of revenue or taxing authority, the book value of which exceeded 10% of stockholders equity at June 30, 2015. Certain investments in debt securities are reported in the financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2015, was $23.2 million, which is approximately 17.9% of the Companys available for sale investment portfolio, as compared to $39.5 million or approximately 30.3% of the Companys available for sale investment portfolio at June 30, 2014. Except as discussed below, management believes the declines in fair value for these securities to be temporary. |
Note 2_ Available-for-sale Se52
Note 2: Available-for-sale Securities: Other Securities Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Other Securities Policy | Other securities The June 30, 2015, 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%; no recoveries on issuers currently in default; recoveries of zero to 67 percent on currently deferred issuers within the next two years; new defaults of 50 basis points annually; and recoveries of 10% of new defaults. 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. Our cash flow analysis indicates that interest payments are expected to continue for these two securities. 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 June 30, 2015. For the last of these three securities, the Company is receiving PIK, in lieu of cash interest. Pooled trust preferred securities generally allow, under the terms of the issue, for issuers included in the pool to defer interest for up to five consecutive years. After five years, if not cured, the issuer is considered to be in default and the trustee may demand payment in full of principal and accrued interest. Issuers are also considered to be in default in the event of the failure of the issuer or a subsidiary bank. Both deferred and defaulted issuers are considered non-performing, and the trustee calculates, on a quarterly or semi-annual basis, certain coverage tests prior to the payment of cash interest to owners of the various tranches of the securities. The tests must show that performing collateral is sufficient to meet requirements for senior tranches, both in terms of cash flow and collateral value, before cash interest can be paid to subordinate tranches. If the tests are not met, available cash flow is diverted to pay down the principal balance of senior tranches until the coverage tests are met, before cash interest payments to subordinate tranches may resume. The Company is receiving PIK for this security due to failure of the required coverage tests described above at senior tranche levels of the security. The risk to holders of a tranche of a security in PIK status is that the pools total cash flow will not be sufficient to repay all principal and accrued interest related to the investment. The impact of payment of PIK to subordinate tranches is to strengthen the position of senior tranches, by reducing the senior tranches principal balances relative to available collateral and cash flow, while increasing principal balances, decreasing cash flow, and increasing credit risk to the tranches receiving PIK. For this security in receipt of PIK, the principal balance is increasing, cash flow has stopped, and, as a result, credit risk is increasing. The Company expects this security to remain in PIK status for a period of less than one year. Despite these facts, because the Company does not intend to sell this security and it is not more-likely-than-not that the Company will be required to sell this security prior to recovery of its amortized cost basis, which may be maturity, the Company does not consider this investment to be other-than-temporarily impaired at June 30, 2015. 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 June 30, 2015, 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 June 30, 2015, 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 2_ Available-for-sale Se53
Note 2: Available-for-sale Securities: Credit Losses Recognized on Investments Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Credit Losses Recognized on Investments Policy | Credit losses recognized on investments. As described above, one of the Companys investments in trust preferred securities experienced fair value deterioration due to credit losses, but is not otherwise other-than-temporarily impaired. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly. The following table provides information about the trust preferred security for which only a credit loss was recognized in income and other losses are recorded in other comprehensive income (loss) for the years ended June 30, 2015 and 2014. |
Note 3_ Loans and Allowance F54
Note 3: Loans and Allowance For Loan Losses: Residential Mortgage Lending Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Residential Mortgage Lending Policy | Residential Mortgage Lending. The Company also originates loans secured by multi-family residential properties that are often located outside the Companys 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 3_ Loans and Allowance F55
Note 3: Loans and Allowance For Loan Losses: Commercial Real Estate Lending Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Commercial Real Estate Lending Policy | Commercial Real Estate Lending. Most commercial real estate loans originated by the Company generally are based on amortization schedules of up to 20 years with monthly principal and interest payments. Generally, the interest rate received on these loans is fixed for a maturity for up to five 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 five 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 3_ Loans and Allowance F56
Note 3: Loans and Allowance For Loan Losses: Construction Lending Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Construction Lending Policy | Construction Lending. 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 Companys 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 June 30, 2015, construction loans outstanding included 49 loans, totaling $8.2 million, for which a modification had been agreed to; At June 30, 2014, construction loans outstanding included 31 loans, totaling $13.1 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 3_ Loans and Allowance F57
Note 3: Loans and Allowance For Loan Losses: Consumer Lending Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Consumer Lending Policy | Consumer Lending 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 3_ Loans and Allowance F58
Note 3: Loans and Allowance For Loan Losses: Commercial Business Lending Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Commercial Business Lending Policy | Commercial Business Lending |
Note 3_ Loans and Allowance F59
Note 3: Loans and Allowance For Loan Losses: Loans and Leases Receivable, Troubled Debt Restructuring Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Loans and Leases Receivable, Troubled Debt Restructuring Policy | At June 30, 2015, and June 30, 2014, the Company had $4.7 million and $2.9 million, respectively, of commercial real estate loans, $602,000 and $1.8 million, respectively, of residential real estate loans, and $1.3 million and $125,000, respectively, of commercial loans that were modified in TDRs and impaired. All loans classified as TDRs at June 30, 2015, and June 30, 2014, were so classified due to interest rate concessions. During Fiscal 2015, three commercial real estate loans totaling $1.7 million, two commercial loans totaling $1.2 million, and four residential real estate loans totaling $542,000 were modified as TDRs and had payment defaults subsequent to the modification. When loans modified as TDRs have subsequent payment defaults, the defaults are factored into the determination of the allowance for loan losses to ensure specific valuation allowance reflect amounts considered uncollectible. |
Note 10_ Employee Benefits_ 401
Note 10: Employee Benefits: 401(k) Retirement Plan Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
401(k) Retirement Plan Policy | 401(k) Retirement Plan. |
Note 10_ Employee Benefits_ Man
Note 10: Employee Benefits: Management Recognition Plan (MRP) Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Management Recognition Plan (MRP) Policy | Management Recognition Plan (MRP) The Board of Directors can terminate the MRP plan at any time, and if it does so, any shares not allocated will revert to the Company. The MRP expense for fiscal 2015, 2014, and 2013, was $13,000 for each year. At June 30, 2015, unvested compensation expense related to the MRP was approximately $26,000. |
Note 10_ Employee Benefits_ Equ
Note 10: Employee Benefits: Equity Incentive Plan Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Equity Incentive Plan Policy | Equity Incentive Plan The Board of Directors can terminate EIP awards at any time, and if it does so, any shares not allocated will revert to the Company. The EIP expense for fiscal 2015, 2014, and 2013 was $275,000, $202,000 and $159,000, respectively. At June 30, 2015, unvested compensation expense related to the EIP was approximately $721,000. |
Note 10_ Employee Benefits_ Sto
Note 10: Employee Benefits: Stock Option Plans Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Stock Option Plans Policy | Stock Option Plans As of June 30, 2015, there was $43,000 in remaining unrecognized compensation expense related to nonvested stock options, which will be recognized over the remaining weighted average vesting period. The aggregate intrinsic value of stock options outstanding at June 30, 2015, was $729,000, and the aggregate intrinsic value of stock options exercisable at June 30, 2015, was $685,000. During fiscal 2015, options to purchase 41,000 shares were exercised. The intrinsic value of these options, based on the Companys closing stock price of $18.85, was $441,000. The intrinsic value of options vested in fiscal 2015, 2014, and 2013 was $115,000, $129,000, and $65,000, respectively. |
Note 15_ Commitments and Cred64
Note 15: Commitments and Credit Risk: Standby Letters of Credit (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Standby Letters of Credit | Standby Letters of Credit Standby letters of credit are irrevocable conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Financial standby letters of credit are primarily issued to support public and private borrowing arrangements, including commercial paper, bond financing and similar transactions. Performance standby letters of credit are issued to guarantee performance of certain customers under non-financial contractual obligations. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Company had total outstanding standby letters of credit amounting to $2.6 million at June 30, 2015, and $3.4 million at June 30, 2014, with terms ranging from 12 to 24 months. At June 30, 2015, the Companys deferred revenue under standby letters of credit agreements was nominal. |
Note 15_ Commitments and Cred65
Note 15: Commitments and Credit Risk: Off-Balance Sheet Credit Exposure Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Off-Balance Sheet Credit Exposure Policy | Off-balance-sheet and Credit Risk These financial instruments include commitments to extend credit. These instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the balance sheets. Lines of credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Lines of credit generally have fixed expiration dates. Since a portion of the line may expire without being drawn upon, the total unused lines do not necessarily represent future cash requirements. Each customers creditworthiness is evaluated on a case-by-case basis. The amount of collateral obtained, if deemed necessary, is based on managements credit evaluation of the counterparty. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, commercial real estate and residential real estate. Management uses the same credit policies in granting lines of credit as it does for on balance sheet instruments. The Company had $130.6 million in commitments to extend credit at June 30, 2015, and $112.8 million at June 30, 2014. At June 30, 2015, total commitments to originate fixed-rate loans with terms in excess of one year were $16.8 million at rates ranging from 2.95% to 10.50%, with a weighted-average rate of 4.56%. Commitments to extend credit and standby letters of credit include exposure to some credit loss in the event of nonperformance of the customer. The Companys policies for credit commitments and financial guarantees are the same as those for extension of credit that are recorded in the balance sheet. The commitments extend over varying periods of time with the majority being disbursed within a thirty-day period. The Company originates collateralized commercial, real estate, and consumer loans to customers in Missouri and Arkansas. Although the Company has a diversified portfolio, loans aggregating $435.0 million at June 30, 2015, are secured by single and multi-family residential real estate generally located in the Companys primary lending area. |
Note 17_ Acquisitions_ Business
Note 17: Acquisitions: Business Combinations Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Peoples Service Company | |
Business Combinations Policy | On August 5, 2014, the Company completed its acquisition of Peoples Service Company (PSC) and its subsidiary, Peoples Bank of the Ozarks (Peoples), Nixa, Missouri. Peoples was merged into the Companys bank subsidiary, Southern Bank, in early December, 2014, in connection with the conversion of Peoples data system. The Company acquired Peoples primarily for the purpose of conducting commercial banking activities in markets where it believes the Companys business model will perform well, and for the long-term value of its core deposit franchise. Through June 30, 2015, the Company incurred $678,000 in third-party acquisition-related costs. Expenses totaling $528,000 are included in noninterest expense in the Companys consolidated statement of income for the year ended June 30, 2015, compared to $150,000 for the year ended June 30, 2014. Notes payable of $2.9 million were contractually required to be repaid on the date of acquisition. The goodwill of $3.0 million arising from the acquisition consists largely of synergies and economies of scale expected from combining the operations of the Company and Peoples. Goodwill from this transaction was assigned to the acquisition of the bank holding company, and is not expected to be deductible for tax purposes. |
Note 18_ Fair Value Measureme67
Note 18: Fair Value Measurements: Impaired Loans (Collateral Dependent) Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Impaired Loans (Collateral Dependent) Policy | Impaired Loans (Collateral Dependent) On a quarterly basis, loans classified as special mention, substandard, doubtful, or loss are evaluated including the loan officers review of the collateral and its current condition, the Companys knowledge of the current economic environment in the market where the collateral is located, and the Companys recent experience with real estate in the area. The date of the appraisal is also considered in conjunction with the economic environment and any decline in the real estate market since the appraisal was obtained. For all loan types, updated appraisals are obtained if considered necessary. Of the Companys $17.1 million (carrying value) in impaired loans (collateral-dependent and purchased credit-impaired), excluding performing TDRs at June 30, 2015, the Company utilized a real estate appraisal more than 12 months old to serve as the primary basis of our valuation for impaired loans with a carrying value of approximately $16.1 million. The remaining $1.0 million was secured by machinery, equipment and accounts receivable. In instances where the economic environment has worsened and/or the real estate market declined since the last appraisal, a higher distressed sale discount would be applied to the appraised value. The Company records collateral dependent impaired loans based on nonrecurring Level 3 inputs. If a collateral dependent loans fair value, as estimated by the Company, is less than its carrying value, the Company either records a charge-off of the portion of the loan that exceeds the fair value or establishes a specific reserve as part of the allowance for loan losses. |
Note 18_ Fair Value Measureme68
Note 18: Fair Value Measurements: Foreclosed and Repossessed Assets Held for Sale Policy (Policies) | 12 Months Ended |
Jun. 30, 2015 | |
Policies | |
Foreclosed and Repossessed Assets Held for Sale Policy | Foreclosed and Repossessed Assets Held for Sale |
Note 2_ Available-for-sale Se69
Note 2: Available-for-sale Securities: Schedule of Available for Sale Securities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Available for Sale Securities | The amortized cost, gross unrealized gains, gross unrealized losses and approximate fair value of securities available for sale consisted of the following: June 30, 2015 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Debt and equity securities: U.S. government and Federal agency obligations $14,924 $49 $(159) $14,814 Obligations of states and political subdivisions 40,641 1,473 (93) 42,021 Other securities 3,189 184 (669) 2,704 TOTAL DEBT AND EQUITY SECURITIES 58,754 1,706 (921) 59,539 Mortgage-backed securities: FHLMC certificates 24,371 228 (13) 24,586 GNMA certificates 2,230 18 - 2,248 FNMA certificates 32,391 282 (5) 32,668 CMOs issues by government agencies 10,491 69 (8) 10,552 TOTAL MORTGAGE-BACKED SECURITIES 69,483 597 (26) 70,054 TOTAL $128,237 $2,303 $(947) $129,593 June 30, 2014 Gross Gross Estimated Amortized Unrealized Unrealized Fair (dollars in thousands) Cost Gains Losses Value Debt and equity securities: U.S. government and Federal agency obligations $24,607 $21 $(554) $24,074 Obligations of states and political subdivisions 43,632 1,856 (131) 45,357 Other securities 3,294 264 (918) 2,640 TOTAL DEBT AND EQUITY SECURITIES 71,533 2,141 (1,603) 72,071 Mortgage-backed securities: FHLMC certificates 14,008 198 (18) 14,188 GNMA certificates 4,228 25 (4) 4,249 FNMA certificates 26,470 314 - 26,784 CMOs issues by government agencies 13,074 41 (185) 12,930 TOTAL MORTGAGE-BACKED SECURITIES 57,780 578 (207) 58,151 TOTAL $129,313 $2,719 $(1,810) $130,222 |
Note 2_ Available-for-sale Se70
Note 2: Available-for-sale Securities: Schedule of Available for Sale Securities by Contractual Maturity (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Available for Sale Securities by Contractual Maturity | The amortized cost and fair value of available-for-sale 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 call or prepayment penalties. June 30, 2015 Estimated Amortized Fair (dollars in thousands) Cost Value Within one year $1,921 $1,926 After one year but less than five years 15,532 15,572 After five years but less than ten years 16,126 16,433 After ten years 25,175 25,608 Total investment securities 58,754 59,539 Mortgage-backed securities 69,483 70,054 Total investments and mortgage-backed securities $128,237 $129,593 |
Note 2_ Available-for-sale Se71
Note 2: Available-for-sale Securities: Schedule of Unrealized Loss On Investments Table (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Unrealized Loss On Investments Table | The tables below 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 June 30, 2015 and 2014. Less than 12 months More than 12 months Total Unrealized Unrealized Unrealized For the year ended June 30, 2015 Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $2,970 $28 $6,862 $131 $9,832 $159 Obligations of state and political subdivisions 3,872 59 1,507 34 5,379 93 Other securities - - 1,206 669 1,206 669 Mortgage-backed securities 6,787 26 - - 6,787 26 Total investments and mortgage-backed securities $13,629 $113 $9,575 $834 $23,204 $947 Less than 12 months More than 12 months Total Unrealized Unrealized Unrealized For the year ended June 30, 2014 Fair Value Losses Fair Value Losses Fair Value Losses (dollars in thousands) U.S. government-sponsored enterprises (GSEs) $2,676 $26 $18,451 $528 $21,127 $554 Obligations of state and political subdivisions 1,863 3 4,938 128 6,801 131 Other securities 476 2 532 916 1,008 918 Mortgage-backed securities 8,882 77 1,649 130 10,531 207 Total investments and mortgage-backed securities $13,897 $108 $25,570 $1,702 $39,467 $1,810 |
Note 2_ Available-for-sale Se72
Note 2: Available-for-sale Securities: Schedule of Credit Losses Recognized on Investments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Credit Losses Recognized on Investments | Accumulated Credit Losses Twelve-Month Period Ended (dollars in thousands) June 30, 2015 2014 Credit losses on debt securities held Beginning of period $375 $375 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 (10) - End of period $365 $375 |
Note 3_ Loans and Allowance F73
Note 3: Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Accounts, Notes, Loans and Financing Receivable | Classes of loans are summarized as follows: (dollars in thousands) June 30, 2015 June 30, 2014 Real Estate Loans: Residential $377,465 $303,901 Construction 69,204 40,738 Commercial 404,720 308,520 Consumer loans 46,770 35,223 Commercial loans 191,886 141,072 1,090,045 829,454 Loans in process (24,688) (19,261) Deferred loan fees, net 87 122 Allowance for loan losses (12,298) (9,259) Total loans $1,053,146 $801,056 |
Note 3_ Loans and Allowance F74
Note 3: Loans and Allowance For Loan Losses: Schedule of Balance in Allowance for Loan Losses Based On Portfolio Segment and Impairment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Balance in Allowance for Loan Losses Based On Portfolio Segment and Impairment | (dollars in thousands) Residential Construction Commercial June 30, 2015 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $2,462 $355 $4,143 $519 $1,780 $9,259 Provision charged to expense 400 544 775 334 1,132 3,185 Losses charged off (54) - (9) (128) (50) (241) Recoveries 11 - 47 33 4 95 Balance, end of period $2,819 $899 $4,956 $758 $2,866 $12,298 Ending Balance: individually evaluated for impairment $- $- $- $- $160 $160 Ending Balance: collectively evaluated for impairment $2,819 $899 $4,956 $758 $2,706 $12,138 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $675 $675 Ending Balance: collectively evaluated for impairment $374,186 $42,655 $394,028 $46,560 $190,128 $1,047,557 Ending Balance: loans acquired with deteriorated credit quality $3,279 $1,861 $10,692 $210 $1,083 $17,125 (dollars in thousands) Residential Construction Commercial June 30, 2014 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $1,810 $273 $3,602 $472 $2,229 $8,386 Provision charged to expense 805 82 635 89 35 1,646 Losses charged off (169) - (95) (59) (579) (902) Recoveries 16 - 1 17 95 129 Balance, end of period $2,462 $355 $4,143 $519 $1,780 $9,259 Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $2,462 $355 $4,143 $519 $1,780 $9,259 Ending Balance: loans acquired with deteriorated credit quality $- $- $- $- $- $- Loans: Ending Balance: individually evaluated for impairment $- $- $- $- $- $- Ending Balance: collectively evaluated for impairment $302,111 $21,477 $307,253 $35,223 $140,957 $807,021 Ending Balance: loans acquired with deteriorated credit quality $1,790 $- $1,267 $- $115 $3,172 (dollars in thousands) Residential Construction Commercial June 30, 2013 Real Estate Real Estate Real Estate Consumer Commercial Total Allowance for loan losses: Balance, beginning of period $1,636 $243 $2,985 $484 $2,144 $7,492 Provision charged to expense 472 65 1,034 19 126 1,716 Losses charged off (302) (35) (422) (47) (49) (855) Recoveries 4 - 5 16 8 33 Balance, end of period $1,810 $273 $3,602 $472 $2,229 $8,386 |
Note 3_ Loans and Allowance F75
Note 3: Loans and Allowance For Loan Losses: Financing Receivable Credit Quality Indicators (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Financing Receivable Credit Quality Indicators | (dollars in thousands) Residential Construction Commercial June 30, 2015 Real Estate Real Estate Real Estate Consumer Commercial Pass $372,797 $44,383 $392,063 $46,513 $188,784 Watch 1,155 - 4,636 72 119 Special Mention - - - - - Substandard 3,513 133 8,021 185 2,983 Doubtful - - - - - Total $377,465 $44,516 $404,720 $46,770 $191,886 (dollars in thousands) Residential Construction Commercial June 30, 2014 Real Estate Real Estate Real Estate Consumer Commercial Pass $300,926 $21,477 $303,853 $35,046 $140,138 Watch 301 - 1,014 40 362 Special Mention - - - - - Substandard 2,674 - 3,653 137 572 Doubtful - - - - - Total $303,901 $21,477 $308,520 $35,223 $141,072 |
Note 3_ Loans and Allowance F76
Note 3: Loans and Allowance For Loan Losses: Schedule of Loan Portfolio Aging Analysis (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Loan Portfolio Aging Analysis | The following tables present the Companys loan portfolio aging analysis (excluding loans in process and deferred loan fees) as of June 30, 2015 and 2014. These tables include purchased credit impaired loans, which are reported according to aging analysis after acquisition based on the Companys standards for such classification: (dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Total Loans Total Loans > 90 June 30, 2015 Past Due Past Due 90 Days Past Due Current Receivable Days & Accruing Real Estate Loans: Residential $1,143 $1,645 $439 $3,227 $374,238 $377,465 $- Construction 113 - 132 245 44,271 44,516 - Commercial 350 246 34 630 404,090 404,720 - Consumer loans 260 11 48 319 46,451 46,770 34 Commercial loans 375 127 30 532 191,354 191,886 11 Total loans $2,241 $2,029 $683 $4,953 $1,060,404 $1,065,357 $45 (dollars in thousands) 30-59 Days 60-89 Days Greater Than Total Total Loans Total Loans > 90 June 30, 2014 Past Due Past Due 90 Days Past Due Current Receivable Days & Accruing Real Estate Loans: Residential $1,119 $51 $451 $1,621 $302,280 $303,901 $106 Construction 65 - - 65 21,412 21,477 - Commercial 1,025 - 18 1,043 307,477 308,520 18 Consumer loans 204 30 34 268 34,955 35,223 6 Commercial loans 101 431 347 879 140,193 141,072 - Total loans $2,514 $512 $850 $3,876 $806,317 $810,193 $130 |
Note 3_ Loans and Allowance F77
Note 3: Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Impaired Loans | (dollars in thousands) Recorded Unpaid Principal Specific June 30, 2015 Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $3,552 $3,814 $- Construction real estate 1,861 2,806 - Commercial real estate 12,772 14,602 - Consumer loans 245 241 - Commercial loans 1,340 1,437 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans 675 675 160 Total: Residential real estate $3,552 $3,814 $- Construction real estate $1,861 $2,806 $- Commercial real estate $12,772 $14,602 $- Consumer loans $245 $241 $- Commercial loans $2,015 $2,112 $160 (dollars in thousands) Recorded Unpaid Principal Specific June 30, 2014 Balance Balance Allowance Loans without a specific valuation allowance: Residential real estate $1,790 $2,068 $- Construction real estate - - - Commercial real estate 3,383 3,391 - Consumer loans - - - Commercial loans 115 115 - Loans with a specific valuation allowance: Residential real estate $- $- $- Construction real estate - - - Commercial real estate - - - Consumer loans - - - Commercial loans - - - Total: Residential real estate $1,790 $2,068 $- Construction real estate $- $- $- Commercial real estate $3,383 $3,391 $- Consumer loans $- $- $- Commercial loans $115 $115 $- |
Note 3_ Loans and Allowance F78
Note 3: Loans and Allowance For Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Interest Income Recognized on Impaired Loans | Fiscal 2015 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $3,417 $219 Construction Real Estate 1,902 142 Commercial Real Estate 9,651 737 Consumer Loans 159 12 Commercial Loans 904 69 Total Loans $16,033 $1,179 Fiscal 2014 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $1,742 $197 Construction Real Estate - - Commercial Real Estate 1,306 131 Consumer Loans - - Commercial Loans 654 1 Total Loans $3,702 $329 Fiscal 2013 Average (dollars in thousands) Investment in Interest Income Impaired Loans Recognized Residential Real Estate $1,629 $375 Construction Real Estate - - Commercial Real Estate 2,069 254 Consumer Loans - - Commercial Loans 1,273 91 Total Loans $4,971 $720 |
Note 3_ Loans and Allowance F79
Note 3: Loans and Allowance For Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Financing Receivables, Non Accrual Status | The following table presents the Companys nonaccrual loans at June 30, 2015 and 2014. Purchased credit impaired loans are placed on nonaccrual status in the event the Company cannot reasonably estimate cash flows expected to be collected. The table excludes performing troubled debt restructurings. (dollars in thousands) June 30, 2015 June 30, 2014 Residential real estate $2,202 $444 Construction real estate 133 - Commercial real estate 1,271 673 Consumer loans 88 58 Commercial loans 63 91 Total loans $3,757 $1,266 |
Note 3_ Loans and Allowance F80
Note 3: Loans and Allowance For Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Debtor Troubled Debt Restructuring, Current Period | June 30, 2015 June 30, 2014 (dollars in thousands) Number of Recorded Number of Recorded modifications Investment modifications Investment Residential real estate 7 $602 6 $1,790 Construction real estate - - - - Commercial real estate 14 4,666 12 2,863 Consumer loans - - - - Commercial loans 3 1,280 2 125 Total 24 $6,548 20 $4,778 |
Note 3_ Loans and Allowance F81
Note 3: Loans and Allowance For Loan Losses: Schedule of Related Party Transactions (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Related Party Transactions | Following is a summary of loans to executive officers, directors, significant shareholders and their affiliates held by the Company at June 30, 2015 and 2014, respectively: June 30, (dollars in thousands) 2015 2014 Beginning Balance $10,094 $10,318 Additions 3,925 4,806 Repayments (4,147) (5,030) Change in related party (450) - Ending Balance $9,422 $10,094 |
Note 4_ Accounting For Certai82
Note 4: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans with Credit Deterioration (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Acquired Loans with Credit Deterioration | June 30, (dollars in thousands) 2015 2014 Residential real estate $3,542 $2,068 Construction real estate 2,806 - Commercial real estate 12,523 1,276 Consumer loans 207 - Commercial loans 1,180 115 Outstanding balance $20,258 $3,459 Carrying amount, net of fair value adjustment of $3,132 and $287 at June 30, 2015 and June 30, 2014, respectively $17,126 $3,172 |
Note 4_ Accounting For Certai83
Note 4: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans in Transfer Accretable Yield (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Acquired Loans in Transfer Accretable Yield | Accretable yield, or income expected to be collected, is as follows: June 30, (dollars in thousands) 2015 2014 Balance at beginning of period $380 $799 Additions (4) - Accretion (259) (281) Reclassification from nonaccretable difference 431 4 Disposals - (142) Balance at end of period $548 $380 |
Note 5_ Premises and Equipment_
Note 5: Premises and Equipment: Property, Plant and Equipment (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Property, Plant and Equipment | June 30, (dollars in thousands) 2015 2014 Land $9,848 $6,353 Buildings and improvements 26,393 18,308 Construction in progress 5,160 - Furniture, fixtures, and equipment 11,006 8,504 Automobiles 98 76 52,505 33,241 Less accumulated depreciation 12,779 10,774 $39,726 $22,467 |
Note 6_ Deposits_ Schedule of D
Note 6: Deposits: Schedule of Deposit Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Deposit Liabilities | June 30, (dollars in thousands) 2015 2014 Non-interest bearing accounts $117,471 $68,113 NOW accounts 336,097 271,156 Money market deposit accounts 67,752 28,033 Savings accounts 131,884 95,327 TOTAL NON-MATURITY DEPOSITS $653,204 $462,629 Certificates 0.00-.99% 234,845 182,970 1.00-1.99% 124,608 107,467 2.00-2.99% 30,613 19,113 3.00-3.99% 5,987 13,522 4.00-4.99% - 100 5.00-5.99% 5,985 - TOTAL CERTIFICATES 402,038 323,172 TOTAL DEPOSITS $1,055,242 $785,801 |
Note 6_ Deposits_ Schedule of T
Note 6: Deposits: Schedule of Time Deposit Maturities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Time Deposit Maturities | Certificate maturities are summarized as follows: (dollars in thousands) July 1, 2015 to June 30, 2016 $245,286 July 1, 2016 to June 30, 2017 67,285 July 1, 2017 to June 30, 2018 47,698 July 1, 2018 to June 30, 2019 13,058 July 1, 2019 to June 30, 2020 28,711 Thereafter - TOTAL $402,038 |
Note 7_ Securities Sold Under87
Note 7: Securities Sold Under Agreements To Repurchase: Schedule of Securities Sold Under Agreements to Repurchase (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Securities Sold Under Agreements to Repurchase | June 30, (dollars in thousands) 2015 2014 Year-end balance $27,332 $25,561 Average balance during the year 25,443 24,492 Maximum month-end balance during the year 28,198 26,897 Average interest during the year 0.46% 0.54% Year-end interest rate 0.45% 0.50% |
Note 8_ Advances From Federal88
Note 8: Advances From Federal Home Loan Bank: Schedule of Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Federal Home Loan Bank Advances | Call Date or June 30, Quarterly Interest 2015 2014 Maturity Thereafter Rate (dollars in thousands) 08/31/15 8/31/2015 4.80% $503 $523 11/29/16 8/31/2015 3.88% 5,000 5,000 11/29/16 8/31/2015 4.36% 5,000 5,000 09/28/17 9/28/2015 3.87% 5,303 - 11/20/17 8/20/2015 3.82% 3,000 3,000 11/27/17 8/27/2015 3.24% 5,248 - 11/29/17 8/31/2015 4.01% 2,500 2,500 01/08/18 7/08/2015 2.75% 5,203 - 08/13/18 8/12/2015 3.32% 537 549 08/14/18 8/14/2015 3.48% 4,000 4,000 08/14/18 8/14/2015 3.98% 5,000 5,000 Overnight 0.29% 23,500 - Overnight 0.28% - 59,900 TOTAL $64,794 $85,472 Weighted-average rate 2.46% 1.38% |
Note 8_ Advances From Federal89
Note 8: Advances From Federal Home Loan Bank: Schedule of Federal Home Loan Bank Advances Maturities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Federal Home Loan Bank Advances Maturities | June 30, 2015 FHLB Advance Maturities (dollars in thousands) July 1, 2015 to June 30, 2016 $24,003 July 1, 2016 to June 30, 2017 10,000 July 1, 2017 to June 30, 2018 21,254 July 1, 2018 to June 30, 2019 9,537 July 1, 2019 to June 30, 2020 - July 1, 2020 to thereafter - TOTAL $64,794 |
Note 10_ Employee Benefits_ Sch
Note 10: Employee Benefits: Schedule of Share-based Compensation, Stock Options, Activity (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Stock Options, Activity | 2015 2014 2013 Weighted Weighted Weighted Average Average Average Price Number Price Number Price Number Outstanding at beginning of year $7.29 100,000 $7.42 168,800 $7.44 182,000 Granted 17.55 10,000 - - - - Exercised 8.10 (41,000) 7.62 (68,800) 7.62 (13,200) Forfeited - - - - - - Outstanding at year-end $8.28 69,000 $7.29 100,000 $7.42 168,800 Options exercisable at year-end $6.39 55,000 $7.10 86,000 $7.35 142,800 |
Note 10_ Employee Benefits_ S91
Note 10: Employee Benefits: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions | The following is a summary of the assumptions used in the Black-Scholes pricing model in determining the fair values of options granted during fiscal year 2015. (No options were granted in fiscal 2014 or 2013): 2015 2014 2013 Assumptions: Expected dividend yield 1.94% - - Expected volatility 22.48% - - Risk-free interest rate 2.46% - - Weighted-average expected life (years) 10.00 - - Weighted average fair value of options granted during the year $ 4.29 - - |
Note 10_ Employee Benefits_ S92
Note 10: Employee Benefits: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range | Options Outstanding Options Exercisable Weighted Average Weighted Weighted Remaining Average Average Contractual Number Exercise Number Exercise Life Outstanding Price Exercisable Price 2.4 mo. 5,000 $7.13 5,000 $7.13 40.6 mo. 10,000 6.08 10,000 6.08 54.6 mo. 40,000 6.38 40,000 6.38 76.7 mo. 4,000 11.18 - 11.18 110.3 mo. 10,000 17.55 - 17.55 |
Note 11_ Income Taxes_ Schedule
Note 11: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Deferred Tax Assets and Liabilities | The components of net deferred tax assets are summarized as follows: (dollars in thousands) June 30, 2015 June 30, 2014 Deferred tax assets: Provision for losses on loans $5,037 $3,696 Accrued compensation and benefits 538 450 Other-than-temporary impairment on available for sale securities 137 141 NOL carry forwards acquired 768 853 Minimum Tax Credit 130 130 Unrealized loss on other real estate 6 38 Other 319 - Total deferred tax assets 6,935 5,308 Deferred tax liabilities: FHLB stock dividends 39 157 Purchase accounting adjustments 1,985 1,533 Depreciation 992 767 Prepaid expenses 81 250 Unrealized gain on available for sale securities 502 336 Other - 164 Total deferred tax liabilities 3,599 3,207 Net deferred tax (liability) asset $3,336 $2,101 |
Note 11_ Income Taxes_ Schedu94
Note 11: Income Taxes: Schedule of Effective Income Tax Expense (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Effective Income Tax Expense | A reconciliation of income tax expense at the statutory rate to the Company’s actual income tax expense is shown below: For the year ended June 30 (dollars in thousands) 2015 2014 2013 Tax at statutory rate $6,903 $4,701 $4,767 Increase (reduction) in taxes resulting from: Nontaxable municipal income (530) (524) (506) State tax, net of Federal benefit 523 296 336 Cash surrender value of Bank-owned life insurance (193) (184) (173) Tax credit benefits (364) (391) (342) Other, net (283) (153) (128) Actual provision $6,056 $3,745 $3,954 |
Note 12_ Accumulated Other Co95
Note 12: Accumulated Other Comprehensive Income: Schedule of Accumulated Other Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Accumulated Other Comprehensive Income (Loss) | June 30, (dollars in thousands) 2015 2014 Net unrealized gain (loss) on securities available-for-sale $1,200 $694 Net unrealized gain (loss) on securities available-for-sale securities for which a portion of an other-than-temporary impairment has been recognized in income 156 214 Unrealized gain from defined benefit pension plan 11 25 1,367 933 Tax effect (506) (345) Net of tax amount $861 $588 |
Note 12_ Accumulated Other Co96
Note 12: Accumulated Other Comprehensive Income: Reclassification out of Accumulated Other Comprehensive Income (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Reclassification out of Accumulated Other Comprehensive Income | Amounts Reclassified From AOCI (dollars in thousands) 2015 2014 Affected Line Item in the Condensed Consolidated Statements of Income Unrealized gain (loss) on securities available-for-sale $6 $116 Net realized gains on sale of AFS securities Amortization of defined benefit pension items: (14) (12) Compensation and benefits (included in computation of net periodic pension costs) Total reclassified amount before tax (8) 104 Tax (benefit) expense (3) 38 Provision for Income Tax Total reclassification out of AOCI $(5) $66 Net Income |
Note 13_ Stockholders' Equity97
Note 13: Stockholders' Equity and Regulatory Capital (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations | Actual For Capital Adequacy Purposes To Be Well Capitalized As of June 30, 2015 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $ 154,171 14.22 % $ 86,708 8.00 % n/ a n/ a Southern Bank 149,744 13.82 % 86,708 8.00 % 108,384 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 141,168 13.02 % 65,031 6.00 % n/ a n/ a Southern Bank 136,741 12.62 % 65,031 6.00 % 86,708 8.00 % Tier I Capital (to Average Assets) Consolidated 141,168 10.98 % 51,412 4.00 % n/ a n/ a Southern Bank 136,741 10.65 % 51,362 4.00 % 64,203 5.00 % Common Equity Tier I Capital (to Risk-Weighted Assets) Consolidated 107,040 9.88 % 57,838 4.50 % n/ a n/ a Southern Bank 136,741 12.62 % 57,783 4.50 % 83,464 6.50 % Actual For Capital Adequacy Purposes To Be Well Capitalized As of June 30, 2014 Amount Ratio Amount Ratio Amount Ratio (dollars in thousands) Total Capital (to Risk-Weighted Assets) Consolidated $ 125,930 16.38 % $ 61,522 8.00 % n/ a n/ a Southern Bank 114,811 15.07 % 60,968 8.00 % 76,211 10.00 % Tier I Capital (to Risk-Weighted Assets) Consolidated 116,314 15.12 % 30,762 4.00 % n/ a n/ a Southern Bank 105,281 13.81 % 30,484 4.00 % 45,726 6.00 % Tier I Capital (to Average Assets) Consolidated 116,314 11.71 % 39,743 4.00 % n/ a n/ a Southern Bank 105,281 10.69 % 39,379 4.00 % 49,224 5.00 % |
Note 16_ Earnings Per Share_ Sc
Note 16: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Earnings Per Share, Basic and Diluted | Year Ended June 30, (dollars in thousands except per share data) 2015 2014 2013 Net income $13,668 $10,081 $10,067 Less: Effective dividend on preferred shares 200 200 345 Net income available to common stockholders $13,468 $9,881 $9,722 Denominator for basic earnings per share - Weighted-average shares outstanding 7,337,437 6,616,360 6,582,880 Effect of dilutive securities stock options 169,795 184,054 168,226 Denominator for diluted earnings per share 7,507,232 6,800,414 6,751,106 Basic earnings per share available to common stockholders $1.84 $1.49 $1.48 Diluted earnings per share available to common stockholders $1.79 $1.45 $1.44 |
Note 17_ Acquisitions_ Schedule
Note 17: Acquisitions: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Peoples Service Company | |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Peoples Service Company Fair Value of Consideration Transferred (dollars in thousands) Cash $12,094 Common stock, at fair value 12,331 Total consideration $24,425 Recognized amounts of identifiable assets acquired and liabilities assumed Cash and cash equivalents $18,236 Interest bearing time deposits 9,950 Investment securities 31,257 Loans 190,445 Premises and equipment 11,785 Identifiable intangible assets 3,000 Miscellaneous other assets 4,045 Deposits (221,887) Advances from FHLB (16,038) Subordinated debt (4,844) Miscellaneous other liabilities (1,558) Notes Payable (2,921) Total identifiable net assets 21,470 Goodwill $2,955 |
Note 17_ Acquisitions_ Sched100
Note 17: Acquisitions: Schedule of Business Acquisition, Pro Forma Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Business Acquisition, Pro Forma Information | For the year ended June 30, 2015 2014 (dollars in thousands except per share data) Interest income $56,368 $52,734 Interest expense 8,864 8,907 Net interest income 47,504 43,827 Provision for loan losses 3,185 1,646 Noninterest income 8,774 7,449 Noninterest expense 34,066 33,159 Income before income taxes 19,027 16,471 Income taxes 5,982 4,743 Net income 13,045 11,728 Dividends on preferred shares 200 200 Net income available to common stockholders $12,845 $11,528 Earnings per share Basic $1.72 $1.58 Diluted $1.70 $1.61 Basic weighted average shares outstanding - split adjusted 7,469,027 7,308,146 Diluted weighted average shares outstanding - split adjusted 7,573,027 7,146,307 |
Note 18_ Fair Value Measurem101
Note 18: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis | Fair Value Measurements at June 30, 2015 (dollars in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $14,814 $- $14,814 $- State and political subdivisions 42,021 - 42,021 - Other securities 2,704 - 2,478 226 Mortgage-backed GSE residential 70,054 - 70,054 - Fair Value Measurements at June 30, 2014, Using: (dollars in thousands) Quoted Prices in Active Markets for Identical Assets Significant Other Observable Inputs Significant Unobservable Inputs Fair Value (Level 1) (Level 2) (Level 3) U.S. government sponsored enterprises (GSEs) $24,074 $- $24,074 $- State and political subdivisions 45,357 - 45,357 - Other securities 2,640 - 2,507 133 Mortgage-backed GSE residential 58,151 - 58,151 - |
Note 18_ Fair Value Measurem102
Note 18: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation | (dollars in thousands) 2015 2014 Available-for-sale securities, beginning of period $133 $73 Total unrealized gain (loss) included in comprehensive income 93 60 Transfer from Level 2 to Level 3 - - Available-for-sale securities, end of period $226 $133 |
Note 18_ Fair Value Measurem103
Note 18: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value Measurements, Nonrecurring | Fair Value Measurements at June 30, 2015 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) Impaired loans (collateral dependent) $515 $- $- $515 Foreclosed and repossessed assets held for sale 4,504 - - 4,504 Fair Value Measurements at June 30, 2014, 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) Impaired loans (collateral dependent) $- $- $- $- Foreclosed and repossessed assets held for sale 2,977 - - 2,977 |
Note 18_ Fair Value Measurem104
Note 18: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis | The following table presents gains and (losses) recognized on assets measured on a non-recurring basis for the years ended June 30, 2015 and 2014: (dollars in thousands) 2015 2014 Impaired loans (collateral dependent) $(160) $77 Foreclosed and repossessed assets held for sale (92) (264) Total gains (losses) on assets measured on a non-recurring basis $(252) $(187) |
Note 18_ Fair Value Measurem105
Note 18: Fair Value Measurements: Fair Value Inputs, Assets, Quantitative Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Fair Value Inputs, Assets, Quantitative Information | Range of Weighted- Fair value at Valuation Unobservable Discounts average June 30, 2015 technique inputs applied discount applied Recurring Measurements Available-for-sale securities (pooled trust preferred security) $226 Discounted cash flow Discount rate n/a 11.3% Annual prepayment rate n/a 1.0% Projected defaults and deferrals (% of pool balance) n/a 32.1% Anticipated recoveries (% of pool balance) n/a 6.1% Nonrecurring Measurements Impaired loans (collateral dependent) 515 Internal valuation of closely-held stock Discount to reflect realizable value n/a 28.7% Foreclosed and repossessed assets 4,504 Third party appraisal Marketability discount 0.0 76.0% 33.4% Range of Weighted- Fair value at Valuation Unobservable Discounts average June 30, 2014 technique inputs applied discount applied Recurring Measurements Available-for-sale securities $133 Discounted cash flow Discount rate n/a 15.6% Prepayment rate n/a 1% Projected defaults and deferrals (% of pool balance) n/a 38.8% Anticipated recoveries (% of pool balance) n/a 1.0% Nonrecurring Measurements Foreclosed and repossessed assets 2,977 Third party appraisal Marketability discount 0.0 - 76.4% 14.9% |
Note 18_ Fair Value Measurem106
Note 18: Fair Value Measurements: Schedule of Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Fair Value of Financial Instruments | June 30, 2015 Quoted Prices in Active Significant Markets for Significant Other Unobservable (dollars in thousands) Carrying Identical Assets Observable Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $16,775 $16,775 $- $- Interest-bearing time deposits 1,944 - 1,944 - Stock in FHLB 4,127 - 4,127 - Stock in Federal Reserve Bank of St. Louis 2,340 - 2,340 - Loans receivable, net 1,053,146 - - 1,057,677 Accrued interest receivable 5,168 - 5,168 - Financial liabilities Deposits 1,055,242 653,294 - 401,820 Securities sold under agreements to repurchase 27,332 - 27,332 - Advances from FHLB 64,794 23,500 42,870 - Accrued interest payable 777 - 777 - Subordinated debt 14,658 - - 12,290 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - June 30, 2014 Quoted Prices in Active Significant Markets for Significant Other Unobservable (dollars in thousands) Carrying Identical Assets Observable Inputs Inputs Amount (Level 1) (Level 2) (Level 3) Financial assets Cash and cash equivalents $14,932 $14,932 $- $- Interest-bearing time deposits 1,655 - 1,655 - Stock in FHLB 4,569 - 4,569 - Stock in Federal Reserve Bank of St. Louis 1,424 - 1,424 - Loans receivable, net 801,056 - - 805,543 Accrued interest receivable 4,402 - 4,402 - Financial liabilities Deposits 785,801 462,629 - 323,512 Securities sold under agreements to repurchase 25,561 - 25,561 - Advances from FHLB 85,472 59,900 27,714 - Accrued interest payable 570 - 570 - Subordinated debt 9,727 - - 8,059 Unrecognized financial instruments (net of contract amount) Commitments to originate loans - - - - Letters of credit - - - - Lines of credit - - - - |
Note 20_ Condensed Parent Co107
Note 20: Condensed Parent Company Only Financial Statements: Condensed Balance Sheet (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Condensed Balance Sheet | (dollars in thousands) June 30 Condensed Balance Sheets 2015 2014 Assets Cash and cash equivalents $902 $5,700 Other assets 8,365 6,856 Investment in common stock of Bank 138,583 108,332 TOTAL ASSETS $147,850 $120,888 Liabilities and Stockholder's Equity Accrued expenses and other liabilities $549 $50 Subordinated debt 14,658 9,727 TOTAL LIABILITIES 15,207 9,777 Stockholder's equity 132,643 111,111 TOTAL LIABILITIES AND STOCKHOLDER'S EQUITY $147,850 $120,888 |
Note 20_ Condensed Parent Co108
Note 20: Condensed Parent Company Only Financial Statements: Condensed Income Statement (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Condensed Income Statement | (dollars in thousands) Year ended June 30, Condensed Statements of Income 2015 2014 2013 Interest income $115 $255 $311 Interest expense 512 305 227 Net interest income (expense) (397) (50) 84 Dividends from Bank 13,200 3,000 3,000 Operating expenses 940 1,141 369 Income before income taxes and equity in undistributed income of the Bank 11,863 1,809 2,715 Income tax benefit 463 444 107 Income before equity in undistributed income of the Bank 12,326 2,253 2,822 Equity in undistributed income of the Bank 1,342 7,828 7,245 NET INCOME $13,668 $10,081 $10,067 COMPREHENSIVE INCOME $13,941 $10,848 $9,188 |
Note 20_ Condensed Parent Co109
Note 20: Condensed Parent Company Only Financial Statements: Condensed Statements of Cash Flow | 12 Months Ended |
Jun. 30, 2015 | |
Notes | |
Condensed Statements of Cash Flow | Year ended June 30, Condensed Statements of Cash Flow (dollars in thousands) 2015 2014 2013 Cash Flows from operating activities: Net income $ 13,668 $ 10,081 $ 10,067 Changes in: Equity in undistributed income of the Bank (1,342 ) (7,828 ) (7,245 ) Other adjustments, net 78 65 483 NET CASH PROVIDED BY OPERATING ACTIVITES 12,404 2,318 3,305 Cash flows from investing activities: Proceeds from loan participations 2,593 3,913 215 Proceeds from sale of real estate - 849 - Purchases of premises and equipment - (3,257 ) - Investments in Bank subsidiaries (11,774 ) (11,988 ) - Retirement of debt in acquisitions (2,936 ) (692 ) - Investments in state and federal tax credits - (225 ) - NET CASH PROVIDED BY (USED IN) INVESTING ACTIVITIES (12,117 ) (11,400 ) 215 Cash flows from financing activities: Dividends on preferred stock (200 ) (200 ) (412 ) Dividends on common stock (2,517 ) (2,119 ) (1,975 ) Exercise of stock options 332 524 101 Redemption of common stock warrants (2,700 ) - - NET CASH (USED IN) PROVIDED BY FINANCING ACTIVITIES (5,085 ) (1,795 ) (2,286 ) Net increase (decrease) in cash and cash equivalents (4,798 ) (10,877 ) 1,234 Cash and cash equivalents at beginning of year 5,700 16,577 15,343 CASH AND CASH EQUIVALENTS AT END OF YEAR $ 902 $ 5,700 $ 16,577 |
Note 21_ Quarterly Financial110
Note 21: Quarterly Financial Data (unaudited): Schedule of Quarterly Financial Information (Tables) | 12 Months Ended |
Jun. 30, 2015 | |
Tables/Schedules | |
Schedule of Quarterly Financial Information | June 30, 2015 (dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $13,219 $14,357 $13,909 $13,816 Interest expense 2,090 2,195 2,211 2,270 Net interest income 11,129 12,162 11,698 11,546 Provision for loan losses 827 862 837 659 Noninterest income 1,980 2,187 2,094 2,398 Noninterest expense 7,602 8,590 8,091 8,002 Income before income taxes 4,680 4,897 4,864 5,283 Income tax expense 1,381 1,460 1,497 1,718 NET INCOME $3,299 $3,437 $3,367 $3,565 June 30, 2014 (dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $9,165 $10,238 $10,316 $10,752 Interest expense 1,792 1,907 1,882 1,904 Net interest income 7,373 8,331 8,434 8,848 Provision for loan losses 500 295 253 598 Noninterest income 1,280 1,666 1,462 1,724 Noninterest expense 4,567 6,226 6,619 6,234 Income before income taxes 3,586 3,476 3,024 3,740 Income tax expense 1,023 957 781 984 NET INCOME $2,563 $2,519 $2,243 $2,756 June 30, 2013 (dollars in thousands) First Quarter Second Quarter Third Quarter Fourth Quarter Interest income $9,362 $9,198 $8,756 $8,975 Interest expense 1,942 1,867 1,864 1,828 Net interest income 7,420 7,331 6,892 7,147 Provision for loan losses 611 462 228 415 Noninterest income 1,060 1,118 1,144 1,146 Noninterest expense 4,138 4,441 4,441 4,501 Income before income taxes 3,731 3,546 3,367 3,377 Income tax expense 1,141 1,065 901 847 NET INCOME $2,590 $2,481 $2,466 $2,530 |
Note 1_ Organization and Sum111
Note 1: Organization and Summary of Significant Accounting Policies: Cash and Cash Equivalents, Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Cash Due and Interest-Bearing Deposits in Other Depository Institutions | $ 6,600 | $ 8,600 |
Note 1_ Organization and Sum112
Note 1: Organization and Summary of Significant Accounting Policies: Intangible Assets Policy (Details) - USD ($) | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Finite-Lived Core Deposits, Gross | $ 5,900,000 | $ 2,900,000 |
Finite-Lived Intangible Assets, Accumulated Amortization | 1,900,000 | 875,000 |
Other Finite-Lived Intangible Assets, Gross | 3,800,000 | 3,800,000 |
Gross Other Identifiable Intangibles Accumulated Amortization | 3,800,000 | 3,500,000 |
Federal Home Loan Bank Mortgage Servicing Rights on Intangible Assets | $ 157,000 | $ 38,000 |
Finite-Lived Intangible Assets, Amortization Method | The Company’s core deposit and other intangible assets are being amortized using the straight line method | |
Core Deposits and Intangible Assets, Remaining Amortization Period | periods ranging from five to fifteen years | |
Finite-Lived Intangible Assets, Amortization Expense, Next Rolling Twelve Months | $ 1,000,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Two | 911,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Three | 911,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Four | 655,000 | |
Finite-Lived Intangible Assets, Amortization Expense, Rolling Year Five | $ 500,000 |
Note 2_ Available-for-sale S113
Note 2: Available-for-sale Securities: Schedule of Available for Sale Securities (Details) - Investment and mortgage backed securities - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Total Investments Mortgage Backed Securities | ||
Available-for-sale Securities, Amortized Cost Basis | $ 128,237 | $ 129,313 |
Available for sale Securities Gross Unrealized Gain | 2,303 | 2,719 |
Available For Sale Securities Gross Unrealized Losses | (947) | (1,810) |
Available-for-sale Securities Estimated Fair Value | 129,593 | 130,222 |
Debt And Equity Securities | US Government and Federal Agency Obligations | ||
Available-for-sale Securities, Amortized Cost Basis | 14,924 | 24,607 |
Available for sale Securities Gross Unrealized Gain | 49 | 21 |
Available For Sale Securities Gross Unrealized Losses | (159) | (554) |
Available-for-sale Securities Estimated Fair Value | 14,814 | 24,074 |
Debt And Equity Securities | US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 40,641 | 43,632 |
Available for sale Securities Gross Unrealized Gain | 1,473 | 1,856 |
Available For Sale Securities Gross Unrealized Losses | (93) | (131) |
Available-for-sale Securities Estimated Fair Value | 42,021 | 45,357 |
Debt And Equity Securities | Other Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 3,189 | 3,294 |
Available for sale Securities Gross Unrealized Gain | 184 | 264 |
Available For Sale Securities Gross Unrealized Losses | (669) | (918) |
Available-for-sale Securities Estimated Fair Value | 2,704 | 2,640 |
Debt And Equity Securities | Total Debt and Equity Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 58,754 | 71,533 |
Available for sale Securities Gross Unrealized Gain | 1,706 | 2,141 |
Available For Sale Securities Gross Unrealized Losses | (921) | (1,603) |
Available-for-sale Securities Estimated Fair Value | 59,539 | 72,071 |
Collateralized Mortgage Backed Securities | Federal Home Loan Mortgage Corporation Certificates and Obligations (FHLMC) | ||
Available-for-sale Securities, Amortized Cost Basis | 24,371 | 14,008 |
Available for sale Securities Gross Unrealized Gain | 228 | 198 |
Available For Sale Securities Gross Unrealized Losses | (13) | (18) |
Available-for-sale Securities Estimated Fair Value | 24,586 | 14,188 |
Collateralized Mortgage Backed Securities | Government National Mortgage Association Certificates and Obligations (GNMA) | ||
Available-for-sale Securities, Amortized Cost Basis | 2,230 | 4,228 |
Available for sale Securities Gross Unrealized Gain | 18 | 25 |
Available For Sale Securities Gross Unrealized Losses | (4) | |
Available-for-sale Securities Estimated Fair Value | 2,248 | 4,249 |
Collateralized Mortgage Backed Securities | Federal National Mortgage Association Certificates and Obligations (FNMA) | ||
Available-for-sale Securities, Amortized Cost Basis | 32,391 | 26,470 |
Available for sale Securities Gross Unrealized Gain | 282 | 314 |
Available For Sale Securities Gross Unrealized Losses | (5) | |
Available-for-sale Securities Estimated Fair Value | 32,668 | 26,784 |
Collateralized Mortgage Backed Securities | Collateralized Mortgage Obligations | ||
Available-for-sale Securities, Amortized Cost Basis | 10,491 | 13,074 |
Available for sale Securities Gross Unrealized Gain | 69 | 41 |
Available For Sale Securities Gross Unrealized Losses | (8) | (185) |
Available-for-sale Securities Estimated Fair Value | 10,552 | 12,930 |
Collateralized Mortgage Backed Securities | Total Mortgage Backed Securities | ||
Available-for-sale Securities, Amortized Cost Basis | 69,483 | 57,780 |
Available for sale Securities Gross Unrealized Gain | 597 | 578 |
Available For Sale Securities Gross Unrealized Losses | (26) | (207) |
Available-for-sale Securities Estimated Fair Value | $ 70,054 | $ 58,151 |
Note 2_ Available-for-sale S114
Note 2: Available-for-sale Securities: Schedule of Available for Sale Securities by Contractual Maturity (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Details | |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis | $ 1,921 |
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value | 1,926 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis | 15,532 |
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value | 15,572 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis | 16,126 |
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value | 16,433 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis | 25,175 |
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value | 25,608 |
Debt and equity securities amortized cost | 58,754 |
Debt and equity securities fair value | 59,539 |
Mortgage-backed securities GSE residential amortized cost | 69,483 |
Mortgage-backed securities GSE residential fair value | 70,054 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis | 128,237 |
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value | $ 129,593 |
Note 2_ Available-for-sale S115
Note 2: Available-for-sale Securities: Marketable Securities Available for Sale Securities Policy: Securities Pledged as Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Pledged Assets Separately Reported, Other Debt Securities Available-for-sale or Held-for-investment | $ 112,600 | $ 81,900 |
Note 2_ Available-for-sale S116
Note 2: Available-for-sale Securities: Marketable Securities Available for Sale Securities Policy: Gain on Sales of Available for Sale Securities (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | |||
Gain Recognized on Sales of Available for Sale Securities | $ 6,228 | $ 116,164 | $ 0 |
Note 2_ Available-for-sale S117
Note 2: Available-for-sale Securities: Marketable Securities Available for Sale Securities Policy: Fair Value of Investments Owned (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Investment Owned, at Fair Value | $ 23,200 | $ 39,500 |
Percentage of available for sale investment portfolio | 17.90% | 30.30% |
Note 2_ Available-for-sale S118
Note 2: Available-for-sale Securities: Schedule of Unrealized Loss On Investments Table (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
US Government-sponsored Enterprises Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | $ 2,970 | $ 2,676 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregated Losses | 28 | 26 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 6,862 | 18,451 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregated Losses | 131 | 528 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 9,832 | 21,127 |
Available for sale Securities Continuous Unrealized Loss Position Aggregate Losses | 159 | 554 |
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 3,872 | 1,863 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregated Losses | 59 | 3 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,507 | 4,938 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregated Losses | 34 | 128 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 5,379 | 6,801 |
Available for sale Securities Continuous Unrealized Loss Position Aggregate Losses | 93 | 131 |
Other Debt Obligations | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 476 | |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregated Losses | 2 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,206 | 532 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregated Losses | 669 | 916 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 1,206 | 1,008 |
Available for sale Securities Continuous Unrealized Loss Position Aggregate Losses | 669 | 918 |
US States and Political Subdivisions Debt Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 6,787 | 8,882 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregated Losses | 26 | 77 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 1,649 | |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregated Losses | 130 | |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 6,787 | 10,531 |
Available for sale Securities Continuous Unrealized Loss Position Aggregate Losses | 26 | 207 |
Total Investments Mortgage Backed Securities | ||
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value | 13,629 | 13,897 |
Available-for-sale Securities Continuous Unrealized Loss Position Less Than 12 Months Aggregated Losses | 113 | 108 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value | 9,575 | 25,570 |
Available-for-sale Securities Continuous Unrealized Loss Position 12 Months or Longer Aggregated Losses | 834 | 1,702 |
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value | 23,204 | 39,467 |
Available for sale Securities Continuous Unrealized Loss Position Aggregate Losses | $ 947 | $ 1,810 |
Note 2_ Available-for-sale S119
Note 2: Available-for-sale Securities: Other Securities Policy: Pooled Trust Preferred Securities (Details) - Jun. 30, 2015 $ in Thousands | USD ($) |
Details | |
Number of Pooled Trust Preferred Securities | 3 |
Fair Value of Pooled Trust Preferred Securities Held | $ 770,000 |
Unrealized Losses on Pooled Trust Preferred Securities in a Continuous Unrealized Loss Position for 12 Months or More | $ 662,000 |
Note 2_ Available-for-sale S120
Note 2: Available-for-sale Securities: Schedule of Credit Losses Recognized on Investments (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Reductions, Cash Flows | $ (10) | |
Beginning of period | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | 375 | $ 375 |
End of period | ||
Other Than Temporary Impairment Credit Losses Recognized In Earnings Credit Losses On Debt Securities Held | $ 365 | $ 375 |
Note 3_ Loans and Allowance 121
Note 3: Loans and Allowance For Loan Losses: Schedule of Accounts, Notes, Loans and Financing Receivable (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Loans receivable, net | $ 1,053,146 | $ 801,056 |
Consumer Loan | ||
Loans receivable, net | 46,770 | 35,223 |
Commercial Loan | ||
Loans receivable, net | 191,886 | 141,072 |
Loans Receivable Gross | ||
Loans receivable, net | 1,090,045 | 829,454 |
Loans in process | ||
Loans receivable, net | (24,688) | (19,261) |
Deferred loan fees, net | ||
Loans receivable, net | 87 | 122 |
Allowance for Loan and Lease Losses | ||
Loans receivable, net | (12,298) | (9,259) |
Loans Receivable Net | ||
Loans receivable, net | 1,053,146 | 801,056 |
Residential Mortgage | ||
Loans receivable, net | 377,465 | 303,901 |
Construction Real Estate | ||
Loans receivable, net | 69,204 | 40,738 |
Commercial Real Estate | ||
Loans receivable, net | $ 404,720 | $ 308,520 |
Note 3_ Loans and Allowance 122
Note 3: Loans and Allowance For Loan Losses: Commercial Real Estate Lending Policy (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
Commercial Real Estate | |
Loans on Properties Outside Primary Lending Area | $ 73,900 |
Note 3_ Loans and Allowance 123
Note 3: Loans and Allowance For Loan Losses: Construction Lending Policy: Construction Loans Modified for other than TDR (Details) - Construction Loans $ in Thousands | Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) |
Number of Loans Modified for Other Than TDR | 49 | 31 |
Amount of Loans Modified for Other Than TDR | $ 8,200 | $ 13,100 |
Note 3_ Loans and Allowance 124
Note 3: Loans and Allowance For Loan Losses: Schedule of Balance in Allowance for Loan Losses Based On Portfolio Segment and Impairment (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Residential Mortgage | |||
Provision for Loan Losses Expensed | $ 400 | $ 805 | $ 472 |
Allowance for Loan and Lease Losses, Write-offs | (54) | (169) | (302) |
Allowance for Doubtful Accounts Receivable, Recoveries | 11 | 16 | 4 |
Residential Mortgage | Beginning of period | |||
Allowance for loan losses | 2,462 | 1,810 | 1,636 |
Residential Mortgage | End of period | |||
Allowance for loan losses | 2,819 | 2,462 | 1,810 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,819 | 2,462 | |
Financing Receivable, Collectively Evaluated for Impairment | 374,186 | 302,111 | |
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 3,279 | 1,790 | |
Construction Loan Payable | |||
Provision for Loan Losses Expensed | 544 | 82 | 65 |
Allowance for Loan and Lease Losses, Write-offs | (35) | ||
Construction Loan Payable | Beginning of period | |||
Allowance for loan losses | 355 | 273 | 243 |
Construction Loan Payable | End of period | |||
Allowance for loan losses | 899 | 355 | 273 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 899 | 355 | |
Financing Receivable, Collectively Evaluated for Impairment | 42,655 | 21,477 | |
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 1,861 | ||
Commercial Real Estate | |||
Provision for Loan Losses Expensed | 775 | 635 | 1,034 |
Allowance for Loan and Lease Losses, Write-offs | (9) | (95) | (422) |
Allowance for Doubtful Accounts Receivable, Recoveries | 47 | 1 | 5 |
Commercial Real Estate | Beginning of period | |||
Allowance for loan losses | 4,143 | 3,602 | 2,985 |
Commercial Real Estate | End of period | |||
Allowance for loan losses | 4,956 | 4,143 | 3,602 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,956 | 4,143 | |
Financing Receivable, Collectively Evaluated for Impairment | 394,028 | 307,253 | |
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 10,692 | 1,267 | |
Consumer Loan | |||
Provision for Loan Losses Expensed | 334 | 89 | 19 |
Allowance for Loan and Lease Losses, Write-offs | (128) | (59) | (47) |
Allowance for Doubtful Accounts Receivable, Recoveries | 33 | 17 | 16 |
Consumer Loan | Beginning of period | |||
Allowance for loan losses | 519 | 472 | 484 |
Consumer Loan | End of period | |||
Allowance for loan losses | 758 | 519 | 472 |
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 758 | 519 | |
Financing Receivable, Collectively Evaluated for Impairment | 46,560 | 35,223 | |
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 210 | ||
Commercial Loan | |||
Provision for Loan Losses Expensed | 1,132 | 35 | 126 |
Allowance for Loan and Lease Losses, Write-offs | (50) | (579) | (49) |
Allowance for Doubtful Accounts Receivable, Recoveries | 4 | 95 | 8 |
Commercial Loan | Beginning of period | |||
Allowance for loan losses | 1,780 | 2,229 | 2,144 |
Commercial Loan | End of period | |||
Allowance for loan losses | 2,866 | 1,780 | 2,229 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 160 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 2,706 | 1,780 | |
Financing Receivable, Individually Evaluated for Impairment | 675 | ||
Financing Receivable, Collectively Evaluated for Impairment | 190,128 | 140,957 | |
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | 1,083 | 115 | |
Total loans | |||
Provision for Loan Losses Expensed | 3,185 | 1,646 | 1,716 |
Allowance for Loan and Lease Losses, Write-offs | (241) | (902) | (855) |
Allowance for Doubtful Accounts Receivable, Recoveries | 95 | 129 | 33 |
Total loans | Beginning of period | |||
Allowance for loan losses | 9,259 | 8,386 | 7,492 |
Total loans | End of period | |||
Allowance for loan losses | 12,298 | 9,259 | $ 8,386 |
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 160 | ||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 12,138 | 9,259 | |
Financing Receivable, Individually Evaluated for Impairment | 675 | ||
Financing Receivable, Collectively Evaluated for Impairment | 1,047,557 | 807,021 | |
Represents the monetary amount of FinancingReceivableAcquiredWithDeterioratedCreditQuality1, during the indicated time period. | $ 17,125 | $ 3,172 |
Note 3_ Loans and Allowance 125
Note 3: Loans and Allowance For Loan Losses: Financing Receivable Credit Quality Indicators (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Residential Mortgage | Pass | ||
Financing Receivable Credit Quality Indicators | $ 372,797 | $ 300,926 |
Residential Mortgage | Watch | ||
Financing Receivable Credit Quality Indicators | 1,155 | 301 |
Residential Mortgage | Substandard | ||
Financing Receivable Credit Quality Indicators | 3,513 | 2,674 |
Residential Mortgage | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 377,465 | 303,901 |
Construction Loan Payable | Pass | ||
Financing Receivable Credit Quality Indicators | 44,383 | 21,477 |
Construction Loan Payable | Substandard | ||
Financing Receivable Credit Quality Indicators | 133 | |
Construction Loan Payable | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 44,516 | 21,477 |
Commercial Real Estate | Pass | ||
Financing Receivable Credit Quality Indicators | 392,063 | 303,853 |
Commercial Real Estate | Watch | ||
Financing Receivable Credit Quality Indicators | 4,636 | 1,014 |
Commercial Real Estate | Substandard | ||
Financing Receivable Credit Quality Indicators | 8,021 | 3,653 |
Commercial Real Estate | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 404,720 | 308,520 |
Consumer Loan | Pass | ||
Financing Receivable Credit Quality Indicators | 46,513 | 35,046 |
Consumer Loan | Watch | ||
Financing Receivable Credit Quality Indicators | 72 | 40 |
Consumer Loan | Substandard | ||
Financing Receivable Credit Quality Indicators | 185 | 137 |
Consumer Loan | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | 46,770 | 35,223 |
Commercial Loan | Pass | ||
Financing Receivable Credit Quality Indicators | 188,784 | 140,138 |
Commercial Loan | Watch | ||
Financing Receivable Credit Quality Indicators | 119 | 362 |
Commercial Loan | Substandard | ||
Financing Receivable Credit Quality Indicators | 2,983 | 572 |
Commercial Loan | Total By Credit Quality Indicator | ||
Financing Receivable Credit Quality Indicators | $ 191,886 | $ 141,072 |
Note 3_ Loans and Allowance 126
Note 3: Loans and Allowance For Loan Losses: Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Pass | ||
Purchased Credit Impaired Loans | $ 6,400 | $ 409 |
Watch | ||
Purchased Credit Impaired Loans | 4,000 | 0 |
Special Mention | ||
Purchased Credit Impaired Loans | 0 | |
Substandard | ||
Purchased Credit Impaired Loans | 6,700 | 2,700 |
Doubtful | ||
Purchased Credit Impaired Loans | $ 0 | $ 0 |
Note 3_ Loans and Allowance 127
Note 3: Loans and Allowance For Loan Losses (Details) | 12 Months Ended |
Jun. 30, 2015 | |
Details | |
Financing Receivable, Credit Quality, Additional Information | lending relationships over $250,000 are subject to an independent loan review following origination, and lending relationships in excess of $1,000,000 are subject to an independent loan review annually, in order to verify risk ratings |
Note 3_ Loans and Allowance 128
Note 3: Loans and Allowance For Loan Losses: Schedule of Loan Portfolio Aging Analysis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Financing Receivables, 30 to 59 Days Past Due | Residential Mortgage | ||
Financing Receivable Recorded Investment | $ 1,143 | $ 1,119 |
Financing Receivables, 30 to 59 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 113 | 65 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 350 | 1,025 |
Financing Receivables, 30 to 59 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 260 | 204 |
Financing Receivables, 30 to 59 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 375 | 101 |
Financing Receivables, 30 to 59 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 2,241 | 2,514 |
Financing Receivables, 60 to 89 Days Past Due | Residential Mortgage | ||
Financing Receivable Recorded Investment | 1,645 | 51 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 246 | |
Financing Receivables, 60 to 89 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 11 | 30 |
Financing Receivables, 60 to 89 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 127 | 431 |
Financing Receivables, 60 to 89 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 2,029 | 512 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Residential Mortgage | ||
Financing Receivable Recorded Investment | 439 | 451 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 132 | |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 34 | 18 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Consumer Loan | ||
Financing Receivable Recorded Investment | 48 | 34 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Commercial Loan | ||
Financing Receivable Recorded Investment | 30 | 347 |
Financing Receivables, Equal to Greater than 90 Days Past Due | Total loans | ||
Financing Receivable Recorded Investment | 683 | 850 |
Nonperforming Financial Instruments | Residential Mortgage | ||
Financing Receivable Recorded Investment | 3,227 | 1,621 |
Nonperforming Financial Instruments | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 245 | 65 |
Nonperforming Financial Instruments | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 630 | 1,043 |
Nonperforming Financial Instruments | Consumer Loan | ||
Financing Receivable Recorded Investment | 319 | 268 |
Nonperforming Financial Instruments | Commercial Loan | ||
Financing Receivable Recorded Investment | 532 | 879 |
Nonperforming Financial Instruments | Total loans | ||
Financing Receivable Recorded Investment | 4,953 | 3,876 |
Financing Receivables Current | Residential Mortgage | ||
Financing Receivable Recorded Investment | 374,238 | 302,280 |
Financing Receivables Current | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 44,271 | 21,412 |
Financing Receivables Current | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 404,090 | 307,477 |
Financing Receivables Current | Consumer Loan | ||
Financing Receivable Recorded Investment | 46,451 | 34,955 |
Financing Receivables Current | Commercial Loan | ||
Financing Receivable Recorded Investment | 191,354 | 140,193 |
Financing Receivables Current | Total loans | ||
Financing Receivable Recorded Investment | 1,060,404 | 806,317 |
Performing Financial Instruments | Residential Mortgage | ||
Financing Receivable Recorded Investment | 377,465 | 303,901 |
Performing Financial Instruments | Construction Loan Payable | ||
Financing Receivable Recorded Investment | 44,516 | 21,477 |
Performing Financial Instruments | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 404,720 | 308,520 |
Performing Financial Instruments | Consumer Loan | ||
Financing Receivable Recorded Investment | 46,770 | 35,223 |
Performing Financial Instruments | Commercial Loan | ||
Financing Receivable Recorded Investment | 191,886 | 141,072 |
Performing Financial Instruments | Total loans | ||
Financing Receivable Recorded Investment | 1,065,357 | 810,193 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Residential Mortgage | ||
Financing Receivable Recorded Investment | 106 | |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Real Estate | ||
Financing Receivable Recorded Investment | 18 | |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Consumer Loan | ||
Financing Receivable Recorded Investment | 34 | 6 |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Commercial Loan | ||
Financing Receivable Recorded Investment | 11 | |
Financing Receivables Greater Than 90 Days Past Due and Still Accruing | Total loans | ||
Financing Receivable Recorded Investment | $ 45 | $ 130 |
Note 3_ Loans and Allowance 129
Note 3: Loans and Allowance For Loan Losses: Schedule of Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Consumer Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | $ 245 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 241 | |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 245 | |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 241 | |
Commercial Loan | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,340 | $ 115 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 1,437 | 115 |
Impaired Financing Receivable, with Related Allowance, Recorded Investment | 675 | |
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance | 675 | |
Impaired Financing Receivable With Related Allowance Specific Allowance | 160 | |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 2,015 | 115 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 2,112 | 115 |
Impaired Financing Receivable With and Without Related Allowance Specific Allowance | 160 | |
Residential Mortgage | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 3,552 | 1,790 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 3,814 | 2,068 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 3,552 | 1,790 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 3,814 | 2,068 |
Construction Real Estate | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 1,861 | |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 2,806 | |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 1,861 | |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | 2,806 | |
Commercial Real Estate | ||
Impaired Financing Receivable, with No Related Allowance, Recorded Investment | 12,772 | 3,383 |
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance | 14,602 | 3,391 |
Impaired Financing Receivable With and Without Related Allowance Recorded Investment | 12,772 | 3,383 |
Impaired Financial Receivable With and Without Related Allowance Unpaid Principal Balance | $ 14,602 | $ 3,391 |
Note 3_ Loans and Allowance 130
Note 3: Loans and Allowance For Loan Losses: Purchased Credit Impaired Loans With and Without Specific Valuation Allowance (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Loans without a specific valuation allowance | ||
Purchased Credit Impaired Loans | $ 17,100 | $ 3,200 |
Loans with a specific valuation allowance | ||
Purchased Credit Impaired Loans | 0 | |
Loans with and without a specific valuation allowance | ||
Purchased Credit Impaired Loans | $ 17,100 | $ 3,200 |
Note 3_ Loans and Allowance 131
Note 3: Loans and Allowance For Loan Losses: Schedule of Interest Income Recognized on Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Residential Mortgage | |||
Impaired Financing Receivable, Average Recorded Investment | $ 3,417 | $ 1,742 | $ 1,629 |
Impaired Financing Receivable Interest Income Recognized | 219 | 197 | 375 |
Construction Real Estate | |||
Impaired Financing Receivable, Average Recorded Investment | 1,902 | ||
Impaired Financing Receivable Interest Income Recognized | 142 | ||
Commercial Real Estate | |||
Impaired Financing Receivable, Average Recorded Investment | 9,651 | 1,306 | 2,069 |
Impaired Financing Receivable Interest Income Recognized | 737 | 131 | 254 |
Consumer Loan | |||
Impaired Financing Receivable, Average Recorded Investment | 159 | ||
Impaired Financing Receivable Interest Income Recognized | 12 | ||
Commercial Loan | |||
Impaired Financing Receivable, Average Recorded Investment | 904 | 654 | 1,273 |
Impaired Financing Receivable Interest Income Recognized | 69 | 1 | 91 |
Total loans | |||
Impaired Financing Receivable, Average Recorded Investment | 16,033 | 3,702 | 4,971 |
Impaired Financing Receivable Interest Income Recognized | $ 1,179 | $ 329 | $ 720 |
Note 3_ Loans and Allowance 132
Note 3: Loans and Allowance For Loan Losses: Interest Income Recorded for Impaired Loans Representing Change (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | |||
Loans and Leases Receivable, Impaired, Interest Income Recognized, Change in Present Value Attributable to Passage of Time | $ 139 | $ 164 | $ 391 |
Note 3_ Loans and Allowance 133
Note 3: Loans and Allowance For Loan Losses: Schedule of Financing Receivables, Non Accrual Status (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Residential Mortgage | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 2,202 | $ 444 |
Construction Loan Payable | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 133 | |
Commercial Real Estate | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 1,271 | 673 |
Consumer Loan | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 88 | 58 |
Commercial Loan | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | 63 | 91 |
Total loans | ||
Loans and Leases Receivable, Nonperforming, Nonaccrual of Interest | $ 3,757 | $ 1,266 |
Note 3_ Loans and Allowance 134
Note 3: Loans and Allowance For Loan Losses: Purchaed Credit Impaired Loans included in Nonaccrual Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Included in Nonaccrual Loans | ||
Purchased Credit Impaired Loans | $ 2,400 | $ 0 |
Note 3_ Loans and Allowance 135
Note 3: Loans and Allowance For Loan Losses: Loans and Leases Receivable, Troubled Debt Restructuring Policy (Details) | 12 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Commercial Real Estate | ||
Loans Modified in Troubled Debt Restructurings and Impaired | $ 4,700,000 | $ 2,900,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 3 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 1,700,000 | |
Residential Mortgage | ||
Loans Modified in Troubled Debt Restructurings and Impaired | $ 602,000 | 1,800,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 4 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 542,000 | |
Commercial Loan | ||
Loans Modified in Troubled Debt Restructurings and Impaired | $ 1,300,000 | $ 125,000 |
Financing Receivable, Modifications, Subsequent Default, Number of Contracts | 2 | |
Financing Receivable, Modifications, Subsequent Default, Recorded Investment | $ 1,200,000 |
Note 3_ Loans and Allowance 136
Note 3: Loans and Allowance For Loan Losses: Schedule of Debtor Troubled Debt Restructuring, Current Period (Details) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | |
Residential Mortgage | ||
Financing Receivable Modifications Number of Contracts | 7 | 6 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 602 | $ 1,790 |
Commercial Real Estate | ||
Financing Receivable Modifications Number of Contracts | 14 | 12 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 4,666 | $ 2,863 |
Commercial Loan | ||
Financing Receivable Modifications Number of Contracts | 3 | 2 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 1,280 | $ 125 |
Total loans | ||
Financing Receivable Modifications Number of Contracts | 24 | 20 |
Financing Receivable, Modifications, Post-Modification Recorded Investment | $ 6,548 | $ 4,778 |
Note 3_ Loans and Allowance 137
Note 3: Loans and Allowance For Loan Losses: Schedule of Related Party Transactions (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Related Party Transaction, Amounts of Transaction | $ 3,925 | $ 4,806 |
Repayments of Related Party Debt | (4,147) | (5,030) |
Change in related party debt | (450) | |
Beginning of period | ||
Related Party Debt | 10,094 | 10,318 |
End of period | ||
Related Party Debt | $ 9,422 | $ 10,094 |
Note 4_ Accounting For Certa138
Note 4: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans with Credit Deterioration (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | |
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | $ 3,542 | $ 2,068 | |
Construction Loan Payable | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 2,806 | ||
Commercial Real Estate | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 12,523 | 1,276 | |
Consumer Loan | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 207 | ||
Commercial Loan | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 1,180 | 115 | |
Outstanding balance | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | 20,258 | 3,459 | |
Carrying Amount Of Acquired Loans Net | |||
Certain Loans and Debt Securities Acquired in Transfer, Allowance for Credit Losses Due to Subsequent Impairment | [1] | $ 17,126 | $ 3,172 |
[1] | Fair value adjustment of $3,132 and $287 at 2015 and 2014, respectively. |
Note 4_ Accounting For Certa139
Note 4: Accounting For Certain Loans Acquired in A Transfer: Schedule of Acquired Loans in Transfer Accretable Yield (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Certain Loans Acquired In Transfer Accretable Yield Additions | $ (4) | |
Certain Loans Acquired In Transfer Accretable Yield Accretion | (259) | $ (281) |
Certain Loans Acquired In Transfer Accretable Yield Reclassification from Nonaccretable Difference | 431 | 4 |
Certain Loans Acquired In Transfer Accretable Yield Disposals | (142) | |
Beginning of period | ||
Certain Loans Acquired in Transfer, Accretable Yield | 380 | 799 |
End of period | ||
Certain Loans Acquired in Transfer, Accretable Yield | $ 548 | $ 380 |
Note 4_ Accounting For Certa140
Note 4: Accounting For Certain Loans Acquired in A Transfer: Allowance for Loan Losses Increase/Decrease for Purchased Credit Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Fair Value Adjustments For Certain Loans And Debt Securities Acquired In Transfer Allowance For Credit Losses Due To Subsequent Impairment | $ 3,132 | $ 287 |
Purchased Credit Impaired Loans | ||
Allowance for Loan Losses Reversed | $ 0 | $ 57,489 |
Note 5_ Premises and Equipme141
Note 5: Premises and Equipment: Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Land | $ 9,848 | $ 6,353 |
Buildings and Improvements, Gross | 26,393 | 18,308 |
Construction in Progress, Gross | 5,160 | |
Furniture and Fixtures, Gross | 11,006 | 8,504 |
Automobiles | 98 | 76 |
Property, Plant and Equipment, Gross | 52,505 | 33,241 |
Property, Plant, and Equipment, Owned, Accumulated Depreciation | 12,779 | 10,774 |
Premises and equipment, net | $ 39,726 | $ 22,467 |
Note 5_ Premises and Equipme142
Note 5: Premises and Equipment: Property, Plant and Equipment: Construction in progress (Details) $ in Thousands | 12 Months Ended |
Jun. 30, 2015USD ($) | |
New corporate headquarters | |
Property, Plant and Equipment [Line Items] | |
Estimated cost of Construction in progress | $ 11,200 |
Payments for Construction in Process | 4,700 |
New branch facility | |
Property, Plant and Equipment [Line Items] | |
Estimated cost of Construction in progress | 1,400 |
Payments for Construction in Process | $ 441 |
Note 6_ Deposits_ Schedule o143
Note 6: Deposits: Schedule of Deposit Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Noninterest-bearing Deposit Liabilities | $ 117,471 | $ 68,113 |
Deposits, Negotiable Order of Withdrawal (NOW) | 336,097 | 271,156 |
Deposits, Money Market Deposits | 67,752 | 28,033 |
Deposits, Savings Deposits | 131,884 | 95,327 |
Total Non-Maturity Deposits | 653,204 | 462,629 |
Interest-bearing Domestic Deposit, Certificates of Deposits | 402,038 | 323,172 |
Deposits, Domestic | 1,055,242 | 785,801 |
0.00-.99% | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | 234,845 | 182,970 |
1.00-1.99% | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | 124,608 | 107,467 |
2.00-2.99% | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | 30,613 | 19,113 |
3.00-3.99% | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | 5,987 | 13,522 |
4.00-4.99% | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | $ 100 | |
5.00-5.99% | ||
Interest-bearing Domestic Deposit, Certificates of Deposits | $ 5,985 |
Note 6_ Deposits_ Aggregate Amo
Note 6: Deposits: Aggregate Amount of Deposits With Minimum Denominations of $100,000 (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Deposits with Minimum Denominations of $500,000 | $ 239,800 | $ 171,700 |
Note 6_ Deposits_ Schedule o145
Note 6: Deposits: Schedule of Time Deposit Maturities (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Details | |
Time Deposit Maturities, Next Twelve Months | $ 245,286 |
Time Deposit Maturities, Year Two | 67,285 |
Time Deposit Maturities, Year Three | 47,698 |
Time Deposit Maturities, Year Four | 13,058 |
Time Deposit Maturities, Year Five | 28,711 |
Time Deposits | $ 402,038 |
Note 6_ Deposits_ Related Party
Note 6: Deposits: Related Party Deposits (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Related Party Deposit Liabilities | $ 1,600 | $ 2,400 |
Note 7_ Securities Sold Unde147
Note 7: Securities Sold Under Agreements To Repurchase: Market Value of Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Securities Sold under Agreements to Repurchase, Fair Value of Collateral | $ 27,300 | $ 25,600 |
Note 7_ Securities Sold Unde148
Note 7: Securities Sold Under Agreements To Repurchase: Schedule of Securities Sold Under Agreements to Repurchase (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Securities sold under agreements to repurchase | $ 27,332 | $ 25,561 |
Securities Sold Under Agreements to Repurchase Average Balance During Year | 25,443 | 24,492 |
Securities Sold Under Agreements to Repurchase Maximum Month-End Balance During Year | $ 28,198 | $ 26,897 |
Securities Sold Under Agreements to Repurchase Average Interest Rate During Year | 0.46% | 0.54% |
Assets Sold under Agreements to Repurchase, Interest Rate | 0.45% | 0.50% |
End of period | ||
Securities sold under agreements to repurchase | $ 27,332 | $ 25,561 |
Note 8_ Advances From Federa149
Note 8: Advances From Federal Home Loan Bank: Schedule of Federal Home Loan Bank Advances (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Federal Home Loan Bank Advances Maturities Summary | $ 64,794 | $ 85,472 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 2.46% | 1.38% |
Maturity Date 08/31/15 | Call Date 8/31/2015 | 4.80% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 503 | $ 523 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 4.80% | 4.80% |
Maturity Date 11/29/16 | Call Date 8/31/2015 | 3.88% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 5,000 | $ 5,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.88% | 3.88% |
Maturity Date 11/29/16 | Call Date 8/31/2015 | 4.36% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 5,000 | $ 5,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 4.36% | 4.36% |
Maturity Date 09/28/17 | Call Date 9/28/2015 | 3.87% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 5,303 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.87% | 3.87% |
Maturity Date 11/20/17 | Call Date 8/20/2015 | 3.82% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 3,000 | $ 3,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.82% | 3.82% |
Maturity Date 11/27/17 | Call Date 8/27/2015 | 3.24% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 5,248 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.24% | 3.24% |
Maturity Date 11/29/17 | Call Date 8/31/2015 | 4.01% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 2,500 | $ 2,500 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 4.01% | 4.01% |
Maturity Date 01/08/18 | Call Date 7/08/2015 | 2.75% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 5,203 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 2.75% | 2.75% |
Maturity Date 08/13/18 | Call Date 8/12/2015 | 3.32% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 537 | $ 549 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.32% | 3.32% |
Maturity Date 08/14/18 | Call Date 8/14/2015 | 3.48% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 4,000 | $ 4,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.48% | 3.48% |
Maturity Date 08/14/18 | Call Date 8/14/2015 | 3.98% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 5,000 | $ 5,000 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 3.98% | 3.98% |
Overnight | 0.29% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 23,500 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 0.29% | 0.29% |
Overnight | 0.28% | ||
Federal Home Loan Bank Advances Maturities Summary | $ 59,900 | |
Federal Home Loan Bank, Advances, Branch of FHLB Bank, Weighted Average Interest Rate | 0.28% | 0.28% |
Note 8_ Advances From Federa150
Note 8: Advances From Federal Home Loan Bank: Available Line of Credit (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Line of Credit Facility, Remaining Borrowing Capacity | $ 307,400 | $ 195,800 |
Note 8_ Advances From Federa151
Note 8: Advances From Federal Home Loan Bank: Loans Pledged as Collateral (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Loans Pledged as Collateral | $ 525,500 | $ 396,400 |
Note 8_ Advances From Federa152
Note 8: Advances From Federal Home Loan Bank: Schedule of Federal Home Loan Bank Advances Maturities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Federal Home Loan Bank, Advances, Maturities Summary, Due in Next Twelve Months | $ 24,003 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Rolling Year Two | 10,000 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Rolling Year Three | 21,254 | |
Federal Home Loan Bank, Advances, Maturities Summary, Due in Rolling Year Four | 9,537 | |
Federal Home Loan Bank Advances Maturities Summary | $ 64,794 | $ 85,472 |
NOTE 9_ Subordinated Debt (Deta
NOTE 9: Subordinated Debt (Details) - USD ($) $ / shares in Units, $ in Thousands | 1 Months Ended | ||||
Mar. 31, 2004 | Jun. 30, 2015 | Aug. 31, 2014 | Jun. 30, 2014 | Oct. 31, 2013 | |
Ozarks Legacy Community Financial, Inc. (OLCF) | Junior Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Assumed floating rate junior subordinated debt securities | $ 3,100 | ||||
Debt securities carrying value | $ 2,500 | $ 2,500 | |||
Peoples Service Company, Inc. (PSC) | Junior Subordinated Debentures | |||||
Debt Instrument [Line Items] | |||||
Assumed floating rate junior subordinated debt securities | $ 6,500 | ||||
Debt securities carrying value | $ 4,900 | ||||
Southern Missouri Statutory Trust I | Floating Rate Capital Securities (the "Trust Preferred Securities") | |||||
Debt Instrument [Line Items] | |||||
Number of preferred securities issued | $ 7,000 | ||||
Preferred securities liquidation value per share | $ 1,000 | ||||
Preferred securities term | 30 years | ||||
Preferred securities current rate | 3.03% |
Note 10_ Employee Benefits_ 154
Note 10: Employee Benefits: 401(k) Retirement Plan Policy (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Details | |||
401(k) Retirement Plan Expense | $ 752 | $ 485 | $ 446 |
401(k) Retirement Plan Shares Held | 448 |
Note 10_ Employee Benefits_ 155
Note 10: Employee Benefits: Management Recognition Plan (MRP) Policy: Management Recognition Plan (MRP) (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Details | ||||
Management Recognition Plan (MRP) Description | The Bank adopted an MRP for the benefit of non-employee directors and two MRPs for officers and key employees (who may also be directors) in April 1994 | |||
Management Recognition Plan (MRP) Shares Granted to Employees | 6,072 | |||
Management Recognition Plan (MRP) Shares Description of Shares Granted to Employees | The shares granted are in the form of restricted stock vested at the rate of 20% of such shares per year | |||
Management Recognition Plan (MRP) Expense | $ 13 | $ 13 | $ 13 | |
Management Recognition Plan (MRP) Unvested Compensation Expense | $ 26 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested, Number of Shares | 1,214 | 1,214 | 1,214 |
Note 10_ Employee Benefits_ 156
Note 10: Employee Benefits: Equity Incentive Plan Policy: Equity Incentive Plan (Details) - USD ($) | 12 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | Jun. 30, 2012 | |
Equity Incentive Plan Description | The Company adopted an Equity Incentive Plan (EIP) in 2008, reserving for award 132,000 shares (split-adjusted). EIP shares are available for award to directors, officers, and employees of the Company and its affiliates by a committee of outside directors. | |||
Restricted Stock | ||||
Equity Incentive Plan Shares Awarded | 8,000 | 24,000 | 73,928 | |
Equity Incentive Plan Shares Vested | 21,186 | 14,786 | 14,786 | |
Equity Incentive Plan Expense | $ 275,000 | $ 202,000 | $ 159,000 | |
Equity Incentive Plan Unvested Compensation Expense | $ 721,000 |
Note 10_ Employee Benefits_ 157
Note 10: Employee Benefits: Stock Option Plans Policy (Details) - USD ($) | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | |||
Stock Option Plan Description | The Company adopted a stock option plan in October 2003. Under the plan, the Company has granted options to purchase 242,000 shares (split-adjusted) to employees and directors, of which, options to purchase 128,000 shares (split-adjusted) have been exercised, options to purchase 45,000 shares (split-adjusted) have been forfeited, and 69,000 remain outstanding. Under the 2003 Plan, exercised options may be issued from either authorized but unissued shares, or treasury shares. | ||
Stock Option Plan Unrecognized Compensation Expense Related to Nonvested Stock Options | $ 43,000 | ||
Stock Option Plan Aggregate Intrinsic Value of Stock Options Outstanding | 729,000 | ||
Stock Option Plan Aggregate Intrinsic Value of Stock Options Exercisable | $ 685,000 | ||
Stock Option Plan Exercised Options to Purchase | 41,000 | ||
Stock Option Plan Exercised Options to Purchase Intrinsic Value | $ 441,000 | ||
Stock Option Plan Intrinsic Value of Options Vested | $ 115,000 | $ 129,000 | $ 65,000 |
Note 10_ Employee Benefits_ 158
Note 10: Employee Benefits: Schedule of Share-based Compensation, Stock Options, Activity (Details) - $ / shares | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 |
Options outstanding at beginning of year | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 7.29 | $ 7.42 | $ 7.44 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 100,000 | 168,800 | 182,000 |
Options Granted | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 17.55 | ||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 10,000 | ||
Options Exercised | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 8.10 | $ 7.62 | $ 7.62 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | (41,000) | (68,800) | (13,200) |
Options Outstanding at Year-End | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 8.28 | $ 7.29 | $ 7.42 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 69,000 | 100,000 | 168,800 |
Options exercisable at year-end | |||
Share-based Compensation Arrangement by Share-based Payment Award, Per Share Weighted Average Price of Shares Purchased | $ 6.39 | $ 7.10 | $ 7.35 |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range, Number of Outstanding Options | 55,000 | 86,000 | 142,800 |
Note 10_ Employee Benefits_ 159
Note 10: Employee Benefits: Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions (Details) - Jun. 30, 2015 | $ / shares |
Details | |
Fair Value Assumptions, Expected Dividend Yield | 1.94% |
Fair Value Assumptions, Expected Volatility Rate | 22.48% |
Fair Value Assumptions, Risk Free Interest Rate | 2.46% |
Fair value assumptions weighted-average expected life (years) | 10 |
Fair value assumptions weighted-average fair value of | $ 4.29 |
Note 10_ Employee Benefits_ 160
Note 10: Employee Benefits: Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range (Details) - Jun. 30, 2015 - $ / shares | Total |
Weighted Average Remaining Contractual Life 2.4 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 5,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 7.13 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 5,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 7.13 |
Weighted Average Remaining Contractual Life 40.6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 6.08 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 6.08 |
Weighted Average Remaining Contractual Life 54.6 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 6.38 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | 40,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 6.38 |
Weighted Average Remaining Contractual Life 76.7 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 4,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 11.18 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 11.18 |
Weighted Average Remaining Contractual Life 110.3 months | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Number | 10,000 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price | $ 17.55 |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Number | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercisable, Weighted Average Exercise Price | $ 17.55 |
Note 11_ Income Taxes_ Sched161
Note 11: Income Taxes: Schedule of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Deferred Tax Assets Provision for losses on loans | $ 5,037 | $ 3,696 |
Deferred Tax Assets Accrued Compensation and Benefits | 538 | 450 |
Deferred Tax Assets Other-than-Temporary Impairment on Available for Sale Securities | 137 | 141 |
Deferred Tax Assets NOL carry forwards acquired | 768 | 853 |
Deferred Tax Assets, Tax Credit Carryforwards, Alternative Minimum Tax | 130 | 130 |
Deferred Tax Assets Unrealized Loss on Other Real Estate | 6 | 38 |
Deferred Tax Assets, Other | 319 | |
Deferred Tax Assets, Gross | 6,935 | 5,308 |
Deferred Tax Liabilities FHLB Stock Dividends | 39 | 157 |
Deferred Tax Liabilities Purchase Accounting Adjustment | 1,985 | 1,533 |
Deferred Tax Liabilities Depreciation | 992 | 767 |
Deferred Tax Liabilities, Prepaid Expenses | 81 | 250 |
Deferred Tax Liabilities Unrealized Gains On Available for Sale Securities | 502 | 336 |
Deferred Tax Liabilities, Other | 164 | |
Deferred Tax Liabilities, Gross, Current | 3,599 | 3,207 |
Deferred Tax Assets, Net | $ 3,336 | $ 2,101 |
Note 11_ Income Taxes_ Tax Oper
Note 11: Income Taxes: Tax Operating Carryforwards (Details) $ in Thousands | Jun. 30, 2015USD ($) |
Internal Revenue Service (IRS) | |
Operating Loss Carryforwards | $ 1,800 |
Missouri Department Of Revenue | |
Operating Loss Carryforwards | $ 5,200 |
Note 11_ Income Taxes_ Sched163
Note 11: Income Taxes: Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | |||
Effective Income Tax Rate Reconciliation at Federal Statutory Income Tax Rate, Amount | $ 6,903 | $ 4,701 | $ 4,767 |
Nontaxable Municipal Income | (530) | (524) | (506) |
Current State and Local Tax Expense (Benefit) | 523 | 296 | 336 |
Cash Surrender Value of Life Insurance | (193) | (184) | (173) |
Tax credit benefits | (364) | (391) | (342) |
Other Net | (283) | (153) | (128) |
Actual Tax Provision | $ 6,056 | $ 3,745 | $ 3,954 |
Note 12_ Accumulated Other C164
Note 12: Accumulated Other Comprehensive Income: Schedule of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Other comprehensive income unrealized gain (loss) securities available for sale, net | $ 1,200 | $ 694 |
Net unrealized gain (loss) on securities available for sale for which a portion of an other than tempoorary impairment has been recognized in income | 156 | 214 |
Other comprehensive income defined benefit pension plan unrealized gain | 11 | 25 |
Accumulated Other Comprehensive Income (Loss) Gross | 1,367 | 933 |
Accumulated Other Comprehensive Income (Loss) Tax Effect | (506) | (345) |
Accumulated other comprehensive income | $ 861 | $ 588 |
Note 12_ Accumulated Other C165
Note 12: Accumulated Other Comprehensive Income: Reclassification out of Accumulated Other Comprehensive Income (Details) - Reclassification out of Accumulated Other Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | $ (8) | $ 104 |
Net realized gains on sale of AFS securities | ||
Available-for-sale Securities, Gross Unrealized Gain (Loss) | 6 | 116 |
Compensation and benefits (included in computation of net periodic pension costs) | ||
Defined Benefit Plan, Amortization of Gains (Losses) | (14) | (12) |
Provision for Income Tax | ||
Reclassification from AOCI, Current Period, Tax | (3) | 38 |
Net Income | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, Net of Tax | $ (5) | $ 66 |
Note 13_ Stockholders' Equit166
Note 13: Stockholders' Equity and Regulatory Capital (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2013 | Jun. 30, 2015 | Jul. 30, 2014 | Jun. 30, 2014 | |
Equity available for distribution as dividends without prior regulatory approval | $ 11,900 | |||
Special dividend declared and paid for acquisition | $ 10,000 | |||
Percentage Capital Conservation Buffer Of Risk Weighted Assets | 2.50% | |||
Percentage Capital Conservation Buffer Of Risk Weighted Assets To Be Phased | 0.625% | |||
Consolidated | Total Capital (to Risk-Weighted Assets) | ||||
Capital | $ 154,171 | $ 125,930 | ||
Capital to Risk Weighted Assets | 14.22% | 16.38% | ||
Capital Required for Capital Adequacy | $ 86,708 | $ 61,522 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | ||
Consolidated | Tier I Capital (to Risk-Weighted Assets) | ||||
Capital | $ 141,168 | $ 116,314 | ||
Capital to Risk Weighted Assets | 13.02% | 15.12% | ||
Capital Required for Capital Adequacy | $ 65,031 | $ 30,762 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% | ||
Consolidated | Tier I Capital (to Average Assets) | ||||
Capital | $ 141,168 | $ 116,314 | ||
Capital to Risk Weighted Assets | 10.98% | 11.71% | ||
Capital Required for Capital Adequacy | $ 51,412 | $ 39,743 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | 4.00% | ||
Consolidated | Common Equity Tier I Capital (to Risk-Weighted Assets) | ||||
Capital | $ 107,040 | |||
Capital to Risk Weighted Assets | 9.88% | |||
Capital Required for Capital Adequacy | $ 57,838 | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |||
Southern Bank | Total Capital (to Risk-Weighted Assets) | ||||
Capital | $ 149,744 | $ 114,811 | ||
Capital to Risk Weighted Assets | 13.82% | 15.07% | ||
Capital Required for Capital Adequacy | $ 86,708 | $ 60,968 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 8.00% | 8.00% | ||
Capital Required to be Well Capitalized | $ 108,384 | $ 76,211 | ||
Capital Required to be Well Capitalized to Risk Weighted Assets | 10.00% | 10.00% | ||
Southern Bank | Tier I Capital (to Risk-Weighted Assets) | ||||
Capital | $ 136,741 | $ 105,281 | ||
Capital to Risk Weighted Assets | 12.62% | 13.81% | ||
Capital Required for Capital Adequacy | $ 65,031 | $ 30,484 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 6.00% | 4.00% | ||
Capital Required to be Well Capitalized | $ 86,708 | $ 45,726 | ||
Capital Required to be Well Capitalized to Risk Weighted Assets | 8.00% | 6.00% | ||
Southern Bank | Tier I Capital (to Average Assets) | ||||
Capital | $ 136,741 | $ 105,281 | ||
Capital to Risk Weighted Assets | 10.65% | 10.69% | ||
Capital Required for Capital Adequacy | $ 51,362 | $ 39,379 | ||
Capital Required for Capital Adequacy to Risk Weighted Assets | 4.00% | 4.00% | ||
Capital Required to be Well Capitalized | $ 64,203 | $ 49,224 | ||
Capital Required to be Well Capitalized to Risk Weighted Assets | 5.00% | 5.00% | ||
Southern Bank | Common Equity Tier I Capital (to Risk-Weighted Assets) | ||||
Capital | $ 136,741 | |||
Capital to Risk Weighted Assets | 12.62% | |||
Capital Required for Capital Adequacy | $ 57,783 | |||
Capital Required for Capital Adequacy to Risk Weighted Assets | 4.50% | |||
Capital Required to be Well Capitalized | $ 83,464 | |||
Capital Required to be Well Capitalized to Risk Weighted Assets | 6.50% |
Note 14_ Small Business Lend167
Note 14: Small Business Lending Fund Implemented by The U.s. Treasury (Details) - Small Business Lending Fund-Securities Purchase Agreement (Purchase Agreement) - Senior Non-Cumulative Perpetual Preferred Stock - USD ($) | 1 Months Ended | |
May. 21, 2015 | Jul. 21, 2011 | |
Small Business Lending Fund [Line Items] | ||
Value for shares issued | $ 0 | |
Number of shares sold | 20,000 | |
Small Business Lending Fund Preferred Stock Fund Established | $ 30,000,000,000 | |
Minimum Assets Require To Qualify Community Banks | $ 10,000,000,000 | |
Preferred Stock, Dividend Rate, Percentage | 2.8155% | |
Preferred Stock, Dividend Payment Rate, Variable | The dividend rate, as a percentage of the liquidation amount, can fluctuate on a quarterly basis during the first 10 quarters during which the SBLF Preferred Stock is outstanding, based upon changes in the Bank's level of Qualified Small Business Lending (QBSL), as defined in the Purchase Agreement. Based upon the increase in the Bank's level of QBSL over the baseline level calculated under the terms of the Purchase Agreement, the dividend rate for the initial dividend period was set at 2.8155%. For the second through ninth calendar quarters, the dividend rate may be adjusted to between one percent (1%) and five percent (5%) per annum, to reflect the amount of change in the Bank's level of QBSL. The dividend rate for the quarter ended June 30, 2015, was 1%. For the tenth calendar quarter through four and one half years after issuance, the dividend rate will be fixed at between one percent (1%) and seven percent (7%) based upon the increase in QBSL as compared to the baseline. After four and one half years from issuance, the dividend rate will increase to 9% (including a quarterly lending incentive fee of 0.5%). | |
Proceeds from Issuance of Preferred Stock and Preference Stock | $ 9,635,000 | |
Preferred Stock Shares Redeem | 9,550 | |
Class of Warrant or Right, Number of Securities Called by Warrants or Rights | 228,652 | |
Class of Warrant or Right, Exercise Price of Warrants or Rights | $ 6.27 | |
Stock Repurchased During Period, Value | $ 2,700,000 | |
Stock Repurchased During Period, Shares | 231,891 | |
Exercise Price Of Warrants Repurchased | $ 6.18 |
Note 15_ Commitments and Cre168
Note 15: Commitments and Credit Risk: Standby Letters of Credit: Letters of Credit (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Letters of Credit Outstanding, Amount | $ 2,600 | $ 3,400 |
Note 15_ Commitments and Cre169
Note 15: Commitments and Credit Risk: Off-Balance Sheet Credit Exposure Policy (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Unused Commitments to Extend Credit | $ 130,600 | $ 112,800 |
Loans and Leases Receivable, Commitments, Fixed Rates | $ 16,800 | |
Commitments to Originate Fixed Rate Loans Weighted Average Rate | 4.56% | |
Minimum | ||
Commitments to Originate Fixed Rate Loans Rates | 2.95% | |
Maximum | ||
Commitments to Originate Fixed Rate Loans Rates | 10.50% |
Note 16_ Earnings Per Share_170
Note 16: Earnings Per Share: Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Earnings per share net income | $ 13,668 | $ 10,081 | $ 10,067 |
Effective dividend on preferred shares | 200 | 200 | 345 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 13,468 | $ 9,881 | $ 9,722 |
Denominator for diluted earnings per share | 7,507,232 | 6,800,414 | 6,751,106 |
Basic earnings per share available to common stockholders | $ 1.84 | $ 1.49 | $ 1.48 |
Diluted earnings per share available to common stockholders | $ 1.79 | $ 1.45 | $ 1.44 |
Denominator For Basic Earnings Per Share | |||
Weighted Average Number of Shares Outstanding, Basic | 7,337,437 | 6,616,360 | 6,582,880 |
Effect of dilutive securities stock options | 169,795 | 184,054 | 168,226 |
Note 17_ Acquisitions_ Busin171
Note 17: Acquisitions: Business Combinations Policy (Details) - Peoples Bank - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Business Acquisition, Transaction Costs | $ 678 | |
Business Combination, Separately Recognized Transactions, Expenses and Losses Recognized | 528 | $ 150 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Net | $ 3,000 |
Note 17_ Acquisitions_ Sched172
Note 17: Acquisitions: Schedule of Recognized Identified Assets Acquired and Liabilities Assumed (Details) - Peoples Bank $ in Thousands | Aug. 05, 2014USD ($) |
Deposits | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ (221,887) |
Federal Home Loan Bank Advances | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | (16,038) |
Subordinated Debt | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | (4,844) |
Miscellaneous other liabilities | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | (1,558) |
Common Stock | |
Business Combination, Contingent Consideration, Asset | 12,331 |
Cash | |
Business Acquisition Fair Value of Consideration Transferred | 12,094 |
Total consideration | |
Business Combination, Contingent Consideration, Asset | 24,425 |
Cash and Cash Equivalents | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 18,236 |
Interest-bearing time deposits | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 9,950 |
Securities Investment | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 31,257 |
Loans Receivable | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 190,445 |
Property, Plant and Equipment | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 11,785 |
Identifiable intangible assets | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 3,000 |
Miscellaneous other assets | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 4,045 |
Notes Payable to Banks | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | (2,921) |
Total identifiable net assets | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 21,470 |
Goodwill | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 2,955 |
Note 17_ Acquisitions_ Sched173
Note 17: Acquisitions: Schedule of effects of the purchase accounting adjustments and acquisition expenses (Details) - Effects of the purchase accounting adjustments and acquisition expenses - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
TOTAL INTEREST INCOME | $ 55,301 | $ 40,471 | $ 36,291 |
TOTAL INTEREST EXPENSE | 8,766 | 7,485 | 7,501 |
NET INTEREST INCOME | 46,535 | 32,986 | 28,790 |
Provision for loan losses | 3,185 | 1,646 | 1,716 |
TOTAL NONINTEREST INCOME | 8,659 | 6,132 | 4,468 |
TOTAL NONINTEREST EXPENSE | 32,285 | 23,646 | 17,521 |
INCOME BEFORE INCOME TAXES | 19,724 | 13,826 | 14,021 |
Income taxes | 4,429 | 3,513 | 2,736 |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 13,468 | $ 9,881 | $ 9,722 |
Basic earnings per share available to common stockholders | $ 1.84 | $ 1.49 | $ 1.48 |
Diluted earnings per share available to common stockholders | $ 1.79 | $ 1.45 | $ 1.44 |
Unaudited pro forma | |||
TOTAL INTEREST INCOME | $ 56,368 | $ 52,734 | |
TOTAL INTEREST EXPENSE | 8,864 | 8,907 | |
NET INTEREST INCOME | 47,504 | 43,827 | |
Provision for loan losses | 3,185 | 1,646 | |
TOTAL NONINTEREST INCOME | 8,774 | 7,449 | |
TOTAL NONINTEREST EXPENSE | 34,066 | 33,159 | |
INCOME BEFORE INCOME TAXES | 19,027 | 16,471 | |
Income taxes | 5,982 | 4,743 | |
Other Operating Income (Expense), Net | 13,045 | 11,728 | |
Dividends, Preferred Stock | 200 | 200 | |
NET INCOME AVAILABLE TO COMMON STOCKHOLDERS | $ 12,845 | $ 11,528 | |
Basic earnings per share available to common stockholders | $ 1.72 | $ 1.58 | |
Diluted earnings per share available to common stockholders | $ 1.70 | $ 1.61 | |
Weighted Average Basic Shares Outstanding, Pro Forma | 7,469,027 | 7,308,146 | |
Pro Forma Weighted Average Shares Outstanding, Diluted | 7,573,027 | 7,146,307 |
Note 18_ Fair Value Measurem174
Note 18: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
U.S. government sponsored enterprises (GSEs) | ||
Assets, Fair Value Disclosure, Recurring | $ 14,814 | $ 24,074 |
State and political subdivisions | ||
Assets, Fair Value Disclosure, Recurring | 42,021 | 45,357 |
Other securities | ||
Assets, Fair Value Disclosure, Recurring | 2,704 | 2,640 |
Mortgage-backed GSE residential | ||
Assets, Fair Value Disclosure, Recurring | $ 70,054 | $ 58,151 |
Fair Value, Inputs, Level 1 | U.S. government sponsored enterprises (GSEs) | ||
Assets, Fair Value Disclosure, Recurring | ||
Fair Value, Inputs, Level 1 | State and political subdivisions | ||
Assets, Fair Value Disclosure, Recurring | ||
Fair Value, Inputs, Level 1 | Other securities | ||
Assets, Fair Value Disclosure, Recurring | ||
Fair Value, Inputs, Level 1 | Mortgage-backed GSE residential | ||
Assets, Fair Value Disclosure, Recurring | ||
Fair Value, Inputs, Level 2 | U.S. government sponsored enterprises (GSEs) | ||
Assets, Fair Value Disclosure, Recurring | $ 14,814 | $ 24,074 |
Fair Value, Inputs, Level 2 | State and political subdivisions | ||
Assets, Fair Value Disclosure, Recurring | 42,021 | 45,357 |
Fair Value, Inputs, Level 2 | Other securities | ||
Assets, Fair Value Disclosure, Recurring | 2,478 | 2,507 |
Fair Value, Inputs, Level 2 | Mortgage-backed GSE residential | ||
Assets, Fair Value Disclosure, Recurring | $ 70,054 | $ 58,151 |
Fair Value, Inputs, Level 3 | U.S. government sponsored enterprises (GSEs) | ||
Assets, Fair Value Disclosure, Recurring | ||
Fair Value, Inputs, Level 3 | State and political subdivisions | ||
Assets, Fair Value Disclosure, Recurring | ||
Fair Value, Inputs, Level 3 | Other securities | ||
Assets, Fair Value Disclosure, Recurring | $ 226 | $ 133 |
Fair Value, Inputs, Level 3 | Mortgage-backed GSE residential | ||
Assets, Fair Value Disclosure, Recurring |
Note 18_ Fair Value Measurem175
Note 18: Fair Value Measurements: Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Details | ||
Available-for-sale securities, beginning of period | $ 133 | $ 73 |
Fair Value Assets Measured On Recurring Basis Unrealized Gain (Loss) Included in Comprehensive Income | $ 93 | $ 60 |
Fair Value Assets Level 2 To Level 3 Transfers Amount | ||
Available-for-sale securities, end of period | $ 226 | $ 133 |
Note 18_ Fair Value Measurem176
Note 18: Fair Value Measurements: Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Impaired loans (collateral dependent) | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 515 | |
Foreclosed and repossessed assets held for sale | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,504 | $ 2,977 |
Fair Value, Inputs, Level 1 | Impaired loans (collateral dependent) | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Fair Value, Inputs, Level 1 | Foreclosed and repossessed assets held for sale | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Fair Value, Inputs, Level 2 | Impaired loans (collateral dependent) | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Fair Value, Inputs, Level 2 | Foreclosed and repossessed assets held for sale | ||
Assets, Fair Value Disclosure, Nonrecurring | ||
Fair Value, Inputs, Level 3 | Impaired loans (collateral dependent) | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 515 | |
Fair Value, Inputs, Level 3 | Foreclosed and repossessed assets held for sale | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,504 | $ 2,977 |
Note 18_ Fair Value Measurem177
Note 18: Fair Value Measurements: Gains (Losses) Recognized on Assets Measured on a Nonrecurring Basis (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Impaired loans (collateral dependent) | ||
Gain Losses on Assets Measured on a Nonrecurring Basis | $ (160) | $ 77 |
Foreclosed and repossessed assets held for sale | ||
Gain Losses on Assets Measured on a Nonrecurring Basis | (92) | (264) |
Total gains (losses) on assets measured on a non-recurring basis | ||
Gain Losses on Assets Measured on a Nonrecurring Basis | $ (252) | $ (187) |
Note 18_ Fair Value Measurem178
Note 18: Fair Value Measurements: Fair Value Inputs, Assets, Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Impaired loans (collateral dependent) | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 515 | |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | ||
Assets, Fair Value Disclosure, Recurring | $ 226 | $ 133 |
Fair Value Measurements Recurring Valuation Technique | Discounted cash flow | Discounted cash flow |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Discount Rate | ||
Fair Value Measurements Recurring Unobservable Inputs | Discount rate | Discount rate |
Fair Value Measurements Recurring Range of discounts Applied | n/a | n/a |
Fair Value Measurements Recurring Weighted Average Discount Applied | 11.3 | 15.6 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Prepayment Rate | ||
Fair Value Measurements Recurring Unobservable Inputs | Annual prepayment rate | Prepayment rate |
Fair Value Measurements Recurring Range of discounts Applied | n/a | n/a |
Fair Value Measurements Recurring Weighted Average Discount Applied | 1 | 1 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Projected Defaults And Deferrals | ||
Fair Value Measurements Recurring Unobservable Inputs | Projected defaults and deferrals (% of pool balance) | Projected defaults and deferrals (% of pool balance) |
Fair Value Measurements Recurring Range of discounts Applied | n/a | n/a |
Fair Value Measurements Recurring Weighted Average Discount Applied | 32.1 | 38.8 |
Fair Value, Inputs, Level 3 | Available-for-sale Securities | Anticipated recoveries | ||
Fair Value Measurements Recurring Unobservable Inputs | Anticipated recoveries (% of pool balance) | Anticipated recoveries (% of pool balance) |
Fair Value Measurements Recurring Range of discounts Applied | n/a | n/a |
Fair Value Measurements Recurring Weighted Average Discount Applied | 6.1 | 1 |
Fair Value, Inputs, Level 3 | Impaired loans (collateral dependent) | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 515 | |
Fair Value Measurements Nonrecurring Valuation Technique | Internal valuation of closely-held stock | |
Fair Value Measurements Nonrecurring Unobservable Inputs | Discount to reflect realizable value | |
Fair Value Measurements Nonrecurring Range of discounts Applied | n/a | |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 28.7 | |
Fair Value, Inputs, Level 3 | Foreclosed and Repossessed Assets | ||
Assets, Fair Value Disclosure, Nonrecurring | $ 4,504 | $ 2,977 |
Fair Value Measurements Nonrecurring Valuation Technique | Third party appraisal | Third party appraisal |
Fair Value Measurements Nonrecurring Unobservable Inputs | Marketability discount | Marketability discount |
Fair Value Measurements Nonrecurring Range of discounts Applied | 0.0% - 76.0 | 0.0% - 76.4 |
Fair Value Measurements Nonrecurring Weighted Average Discount Applied | 33.4 | 14.9 |
Note 18_ Fair Value Measurem179
Note 18: Fair Value Measurements: Schedule of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | $ 16,775 | $ 14,932 |
Financial Assets | Interest-bearing time deposits | ||
Financial Instruments Owned Carrying Amount | 1,944 | 1,655 |
Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | 4,127 | 4,569 |
Financial Assets | Investment In Stock Of Federal Reserve Bank Of St Louis | ||
Financial Instruments Owned Carrying Amount | 2,340 | 1,424 |
Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | 1,053,146 | 801,056 |
Financial Assets | Accrued interest receivable | ||
Financial Instruments Owned Carrying Amount | 5,168 | 4,402 |
Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | 1,055,242 | 785,801 |
Financial Liabilities | Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned Carrying Amount | 27,332 | 25,561 |
Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | 64,794 | 85,472 |
Financial Liabilities | Accrued interest payable | ||
Financial Instruments Owned Carrying Amount | 777 | 570 |
Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | $ 14,658 | $ 9,727 |
Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit | ||
Fair Value, Inputs, Level 1 | Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | $ 16,775 | $ 14,932 |
Fair Value, Inputs, Level 1 | Financial Assets | Interest-bearing time deposits | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Assets | Investment In Stock Of Federal Reserve Bank Of St Louis | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Assets | Accrued interest receivable | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | $ 653,294 | $ 462,629 |
Fair Value, Inputs, Level 1 | Financial Liabilities | Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | $ 23,500 | $ 59,900 |
Fair Value, Inputs, Level 1 | Financial Liabilities | Accrued interest payable | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 1 | Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit | ||
Fair Value, Inputs, Level 2 | Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 2 | Financial Assets | Interest-bearing time deposits | ||
Financial Instruments Owned Carrying Amount | $ 1,944 | $ 1,655 |
Fair Value, Inputs, Level 2 | Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | 4,127 | 4,569 |
Fair Value, Inputs, Level 2 | Financial Assets | Investment In Stock Of Federal Reserve Bank Of St Louis | ||
Financial Instruments Owned Carrying Amount | $ 2,340 | $ 1,424 |
Fair Value, Inputs, Level 2 | Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 2 | Financial Assets | Accrued interest receivable | ||
Financial Instruments Owned Carrying Amount | $ 5,168 | $ 4,402 |
Fair Value, Inputs, Level 2 | Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 2 | Financial Liabilities | Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned Carrying Amount | $ 27,332 | $ 25,561 |
Fair Value, Inputs, Level 2 | Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | 42,870 | 27,714 |
Fair Value, Inputs, Level 2 | Financial Liabilities | Accrued interest payable | ||
Financial Instruments Owned Carrying Amount | $ 777 | $ 570 |
Fair Value, Inputs, Level 2 | Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 2 | Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit | ||
Fair Value, Inputs, Level 3 | Financial Assets | Cash and Cash Equivalents | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Assets | Interest-bearing time deposits | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Assets | Investment in Federal Home Loan Bank Stock | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Assets | Investment In Stock Of Federal Reserve Bank Of St Louis | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Assets | Loans Receivable | ||
Financial Instruments Owned Carrying Amount | $ 1,057,677 | $ 805,543 |
Fair Value, Inputs, Level 3 | Financial Assets | Accrued interest receivable | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Liabilities | Deposits | ||
Financial Instruments Owned Carrying Amount | $ 401,820 | $ 323,512 |
Fair Value, Inputs, Level 3 | Financial Liabilities | Securities Sold under Agreements to Repurchase | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Liabilities | Federal Home Loan Bank Advances | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Liabilities | Accrued interest payable | ||
Financial Instruments Owned Carrying Amount | ||
Fair Value, Inputs, Level 3 | Financial Liabilities | Subordinated Debt | ||
Financial Instruments Owned Carrying Amount | $ 12,290 | $ 8,059 |
Fair Value, Inputs, Level 3 | Unrecognized financial instruments (net of contract amount) | ||
Commitments to originate loans | ||
Letters of credit | ||
Lines of credit |
Note 20_ Condensed Parent Co180
Note 20: Condensed Parent Company Only Financial Statements: Condensed Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Jun. 30, 2014 |
Details | ||
Cash and cash equivalents, parent company | $ 902 | $ 5,700 |
Other assets, parent company | 8,365 | 6,856 |
Investment in common stock of Bank, parent company | 138,583 | 108,332 |
Total assets, parent company | 147,850 | 120,888 |
Accrued expenses and other liabilities, parent company | 549 | 50 |
Subordinated debt, parent company | 14,658 | 9,727 |
Total liabilities, parent company | 15,207 | 9,777 |
Stockholders' equity, parent company | 132,643 | 111,111 |
Total liabilities and stockholders' equity, parent company | $ 147,850 | $ 120,888 |
Note 20_ Condensed Parent Co181
Note 20: Condensed Parent Company Only Financial Statements: Condensed Income Statement (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Details | |||
Interest income, parent company | $ 115 | $ 255 | $ 311 |
Interest expense, parent company | 512 | 305 | 227 |
Net interest income (expense), parent company | (397) | (50) | 84 |
Dividends from Bank, parent company | 13,200 | 3,000 | 3,000 |
Operating expenses, parent company | 940 | 1,141 | 369 |
Income before income taxes and equity in undistributed income of the Bank, parent company | 11,863 | 1,809 | 2,715 |
Income tax benefit, parent company | 463 | 444 | 107 |
Income before equity in undistributed income of the Bank, parent company | 12,326 | 2,253 | 2,822 |
Equity in undistributed income of the Bank, parent company | 1,342 | 7,828 | 7,245 |
Net income, parent company | 13,668 | 10,081 | 10,067 |
Comprehensive income, parent company | $ 13,941 | $ 10,848 | $ 9,188 |
Note 20_ Condensed Parent Co182
Note 20: Condensed Parent Company Only Financial Statements (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2013 | |
Net increase (decrease) in cash and cash equivalents, parent company | $ (4,798) | $ (10,877) | $ 1,234 |
Cash and cash equivalents beginning of year, parent company | 5,700 | 16,577 | 15,343 |
Cash and cash equivalents end of year, parent company | 902 | 5,700 | 16,577 |
Cash Flows From Operating Activities | |||
Cash flows net income, parent company | 13,668 | 10,081 | 10,067 |
Increase decrease in equity in undistributed income of the Bank, parent company | (1,342) | (7,828) | (7,245) |
Increase decrease in other adjustments, net, parent company | 78 | 65 | 483 |
Net cash provided by operating activities, parent company | 12,404 | 2,318 | 3,305 |
Cash Flows From Investing Activities | |||
Proceeds from (investment in) loan participations, parent company | 2,593 | 3,913 | 215 |
Proceeds from sale of real estate, parent company | 849 | ||
Purchases of premises and equipment, parent company | (3,257) | ||
Investment in Bank subsidiary, parent company | (11,774) | (11,988) | |
Retirement of debt in acquisition | (2,936) | (692) | |
Investment in state and federal tax credits, parent company | (225) | ||
Net cash provided by (used in) investing activities, parent company | (12,117) | (11,400) | 215 |
Cash Flows From Financing Activities | |||
Dividends on preferred stock, parent company | (200) | (200) | (412) |
Dividends on common stock, parent company | (2,517) | (2,119) | (1,975) |
Exercise of stock options, parent company | 332 | 524 | 101 |
Redemption of preferred stock, parent company | (2,700) | ||
Net cash (used in) provided by financing activities, parent company | $ (5,085) | $ (1,795) | $ (2,286) |
Note 21_ Quarterly Financial183
Note 21: Quarterly Financial Data (unaudited): Schedule of Quarterly Financial Information (Details) - Unaudited - USD ($) $ in Thousands | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2012 |
Quarterly interest income | $ 13,816 | $ 13,909 | $ 14,357 | $ 13,219 | $ 10,752 | $ 10,316 | $ 10,238 | $ 9,165 | $ 8,975 | $ 8,756 | $ 9,198 | $ 9,362 |
Quarterly interest expense | 2,270 | 2,211 | 2,195 | 2,090 | 1,904 | 1,882 | 1,907 | 1,792 | 1,828 | 1,864 | 1,867 | 1,942 |
Quarterly net interest income | 11,546 | 11,698 | 12,162 | 11,129 | 8,848 | 8,434 | 8,331 | 7,373 | 7,147 | 6,892 | 7,331 | 7,420 |
Quarterly Provision for loan losses | 659 | 837 | 862 | 827 | 598 | 253 | 295 | 500 | 415 | 228 | 462 | 611 |
Quarterly noninterest income | 2,398 | 2,094 | 2,187 | 1,980 | 1,724 | 1,462 | 1,666 | 1,280 | 1,146 | 1,144 | 1,118 | 1,060 |
Quarterly noninterest expense | 8,002 | 8,091 | 8,590 | 7,602 | 6,234 | 6,619 | 6,226 | 4,567 | 4,501 | 4,441 | 4,441 | 4,138 |
Quarterly income before income taxes | 5,283 | 4,864 | 4,897 | 4,680 | 3,740 | 3,024 | 3,476 | 3,586 | 3,377 | 3,367 | 3,546 | 3,731 |
Quarterly Income tax expense | 1,718 | 1,497 | 1,460 | 1,381 | 984 | 781 | 957 | 1,023 | 847 | 901 | 1,065 | 1,141 |
Quarterly NET INCOME | $ 3,565 | $ 3,367 | $ 3,437 | $ 3,299 | $ 2,756 | $ 2,243 | $ 2,519 | $ 2,563 | $ 2,530 | $ 2,466 | $ 2,481 | $ 2,590 |