Organization, Consolidation and Presentation of Financial Statements Disclosure and Significant Accounting Policies [Text Block]

NOTE

1—SUMMARY

OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation:

The consolidated financial statements include the accounts of Consumers Bancorp, Inc. (Corporation) and its wholly owned subsidiary, Consumers National Bank (Bank), together referred to as the Corporation. All significant intercompany transactions have been eliminated in the consolidation.

Nature of Operations:

Consumers Bancorp, Inc. is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, a broad array of products and services throughout its

primary market area of Carroll, Columbiana, Jefferson, Stark, Summit, Wayne and contiguous counties in Ohio.

The Bank’s business involves attracting deposits from businesses and individual customers and using such deposits to originate commercial, mortgage and consumer loans in its primary market area.

Business Segment Information:

The Corporation is engaged in the business of commercial and retail banking, which accounts for substantially all of its revenues, operating income, and assets. Accordingly, all of its operations are reported in

one

segment, banking.

Use of Estimates:

To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

Cash Flows:

Cash and cash equivalents include cash, deposits with other financial institutions with original maturities of less than

90

days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings. Additional cash flow information was as follows:

	Year Ended June 30,
	2017		2016
Cash paid for interest	$	1,108	$	903
Cash paid for Federal income taxes		300		725
Non-cash transactions:
Transfer from loans to repossessed assets		113		38
Transfer from loans held for sale to portfolio		342		—
Expired and forfeited dividend reinvestment plan shares associated with restricted stock awards that were retired to treasury stock		4		6

Interest–Bearing Deposits in Other Financial Institutions

: Interest-bearing deposits in other financial institutions mature within

one

year and are carried at cost.

Certificates of Deposit in Financial Institutions:

Certificates of deposit in other financial institutions are carried at cost.

Cash Reserves:

The Bank is required to maintain cash on hand and non-interest bearing balances on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements. The required reserve balance at

June 30, 2017

and

2016

was

$304

and

$5,652,

respectively.

Securities:

Securities are generally classified into either held-to-maturity or available-for-sale categories. Held-to-maturity securities are carried at amortized cost and are those that the Corporation has the positive intent and ability to hold to maturity. Available-for-sale securities are those that the Corporation

may

decide to sell before maturity if needed for liquidity, asset-liability management, or other reasons. Available-for-sale securities are reported at fair value, with unrealized gains or losses included in other comprehensive income (loss) as a separate component of equity, net of tax.

Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than

not

that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do

not

meet the aforementioned criteria, the amount of impairment is split into

two

components as follows:

1

) OTTI related to credit loss, which must be recognized in the income statement and

2

) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.

Federal Bank and Other Restricted Stocks:

The Bank is a member of the Federal Home Loan Bank (FHLB) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and

may

invest in additional amounts. FHLB stock, included with Federal bank and other restricted stocks on the Consolidated Balance Sheet, is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Federal Reserve Bank stock is also carried at cost. Since these stocks are viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Loans Held for Sale

: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Loans:

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable.

Interest income on commercial, commercial real estate and

1

-

4

family residential loans is discontinued at the time the loan is

90

days delinquent unless the loan is well-secured and in the process of collection. Consumer loans are typically charged off

no

later than

120

days past due. Past due status is determined by the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but

not

received on loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when the customer has exhibited the ability to repay and demonstrated this ability over at least a consecutive

six

-month period and future payments are reasonably assured.

Loan Commitments and Related Financial Instruments:

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when funded.

Concentrations of Credit Risk:

The Bank grants consumer, real estate and commercial loans primarily to borrowers in Carroll, Columbiana, Jefferson, Stark, Summit and Wayne counties. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economy in these counties. Automobiles and other consumer assets, business assets and residential and commercial real estate secure most loans.

Allowance for Loan Losses:

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required based on past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance

may

be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors.

A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are

not

classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Impairment is evaluated collectively for smaller-balance loans of similar nature such as residential mortgage, consumer loans and on an individual loan basis for other loans. If a loan is impaired, a portion of the allowance is allocated so the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected from the collateral. Loans are evaluated for impairment when payments are delayed, typically

90

days or more, or when it is probable that

not

all principal and interest amounts will be collected according to the original terms of the loan. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Corporation over the most recent

two

-year period. This actual loss experience is supplemented with economic and other factors based on the risks present for each portfolio segment. These factors include consideration of the following: levels of and trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified:

Commercial:

Commercial loans are made for a wide variety of general business purposes, including financing for equipment, inventories and accounts receivable. The term of each commercial loan varies by its purpose.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Current and projected cash flows are evaluated to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however,

may

not

be as expected and the collateral securing these loans

may

fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and usually incorporate a personal guarantee; however, some short-term loans

may

be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans

may

be substantially dependent on the ability of the borrower to collect amounts due from its customers. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the areas where the Bank operates.

Commercial Real Estate:

Commercial real estate loans include mortgage loans to farmers, owners of multi-family investment properties, developers and owners of commercial real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans

may

be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Corporation’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Corporation’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

1

-

4

Family Residential Real Estate

: Residential real estate loans

are secured by

one

to

four

family residential properties and include both owner occupied, non-owner occupied and home equity loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appropriately appraised value of the real estate securing the loan that generally requires that the residential real estate loan amount be

no

more than

80%

of the purchase price or the appraised value of the real estate securing the loan unless the borrower provides private mortgage insurance. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are

not

limited to, a maximum loan-to-value percentage of

80%,

collection remedies, the number of such loans a borrower can have at

one

time and documentation requirements.

Consumer

: The Corporation originates direct and indirect consumer loans, primarily automobile loans, personal lines of credit, and unsecured consumer loans in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.

Other Real Estate Owned:

Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less costs to sell at the date of acquisition, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If the fair value declines after acquisition, a valuation allowance is recorded as a charge to income. Operating costs after acquisition are expensed. Gains and losses on disposition are reported as a charge to income.

Transfers of Financial Assets:

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does

not

maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Premises and Equipment:

Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful life of the owned asset and, for leasehold improvements, generally over the lesser of the remaining term of the lease facility or the estimated economic life of the improvement. Useful lives range from

three

years for software to

thirty-nine

and

one

-half years for buildings.

Cash Surrender Value of Life Insurance:

The Bank has purchased single-premium life insurance policies to insure the lives of current and former participants in the salary continuation plan. As of

June

30,

2017,

the Bank had policies with total death benefits of

$19,728

and total cash surrender values of

$9,065.

As of

June

30,

2016,

the Bank had policies with total death benefits of

$14,106

and total cash surrender values of

$6,819.

Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Tax-exempt income is recognized from the periodic increases in cash surrender value of these policies.

Long-term Assets:

Premises, equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount

may

not

be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase Agreements:

Substantially all repurchase agreement liabilities, which are classified as short-term borrowings, represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are

not

covered by federal deposit insurance.

Retirement Plans:

The Bank maintains a

401

(k) savings and retirement plan covering all eligible employees and matching contributions are expensed as made. Salary continuation plan expense allocates the benefits over years of service.

Income Taxes:

The Corporation files a consolidated federal income tax return. Income tax expense is the sum of the current-year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Corporation applies a more likely than

not

recognition threshold for all tax uncertainties in accordance with U.S. generally accepted accounting principles. A tax position is recognized as a benefit only if it is more likely than

not

the position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit greater than

50%

likely of being realized on examination. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Earnings per Common Share:

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable upon the vesting of restricted stock awards.

Stock-Based Compensation:

Compensation cost is recognized for restricted stock awards issued to employees over the required service period, generally defined as the vesting period. The fair value of restricted stock awards is estimated by using the market price of the Corporation’s common stock at the date of grant. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Comprehensive Income:

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, which are also recognized as a separate component of equity, net of tax.

Loss Contingencies:

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does

not

believe there are such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments:

Fair value of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note

12

of the Consolidated Financial Statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, discounted cash flows, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Dividend Restrictions:

Banking regulations require maintaining certain capital levels and

may

limit the dividends paid by the Bank to the holding company or by the holding company to shareholders.

Reclassifications:

Certain reclassifications have been made to the

June

30,

2016

financial statements to be comparable to the

June

30,

2017

presentation. The reclassifications had

no

impact on prior year net income or shareholders’ equity.

Recently Issued Accounting Pronouncements

Not

Yet Effective:

In

May 2014,

FASB issued Accounting Standards Update (ASU)

2014

-

09,

Revenue from Contracts with Customers (Topic

606

)

. The ASU creates a new topic, Topic

606,

to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after

December 15, 2017.

The adoption of ASU

2014

-

09

as it relates to non-interest income, such as service charges and debit card interchange income, is

not

expected to have a material effect on the Corporation’s financial statements.

In

June 2016,

FASB Issued ASU

2016

-

13,

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments.

This ASU adds a new Topic

326

to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all current loss recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the corporation expects to collect over the instrument’s contractual life. ASU

2016

-

13

also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU

2016

-

13

is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after

December 15, 2019.

Early adoption of the guidance is permitted for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Management is currently evaluating the impact of the adoption of this guidance on the Corporation’s consolidated financial statements, and are in the midst of gathering critical data to evaluate the impact. However, it is too early to estimate the impact.

In

March 2017,

FASB issued ASU

2017

-

08,

Receivables-Nonrefundable Fees and Oher Costs

:

Premium Amortization on Purchased Callable Debt Securities

. The ASU amends the guidance related to amortization for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The adoption of ASU

2017

-

08

will

not

have a material impact on the Corporation’s financial statements.

Note 2 - Securities

12 Months Ended

Jun. 30, 2017

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

NOTE

2—SECURITIES

The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at

June 30, 2017

and

2016

and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2017
Obligations of U.S. government-sponsored entities and agencies	$	12,571	$	90	$	(74	)	$	12,587
Obligations of state and political subdivisions		56,824		890		(254	)		57,460
U.S. Government-sponsored mortgage-backed securities - residential		64,092		184		(438	)		63,838
U.S. Government-sponsored mortgage-backed securities - commercial		1,459		—		(1	)		1,458
U.S. Government-sponsored collateralized mortgage obligations - residential		6,310		1		(100	)		6,211
Pooled trust preferred security		155		377		—			532
Total available-for-sale securities	$	141,411	$	1,542	$	(867	)	$	142,086

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
June 30, 2017
Obligations of state and political subdivisions	$	4,259	$	73	$	(3	)	$	4,329
Total held-to-maturity securities	$	4,259	$	73	$	(3	)	$	4,329

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2016
Obligations of U.S. government-sponsored entities and agencies	$	9,682	$	362	$	—		$	10,044
Obligations of state and political subdivisions		53,952		2,010		(8	)		55,954
U.S. Government-sponsored mortgage-backed securities - residential		58,702		920		(26	)		59,596
U.S. Government-sponsored mortgage-backed securities - commercial		1,485		41		—			1,526
U.S. Government-sponsored collateralized mortgage obligations - residential		5,774		49		(3	)		5,820
Pooled trust preferred security		153		276		—			429
Total available-for-sale securities	$	129,748	$	3,658	$	(37	)	$	133,369

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2016
Obligations of state and political subdivisions	$	3,494	$	125	$	—	$	3,619
Total held-to-maturity securities	$	3,494	$	125	$	—	$	3,619

Proceeds from sales and calls of available-for-sale securities during fiscal year

2017

and fiscal year

2016

were as follows:

	2017		2016
Proceeds from sales and calls	$	14,255	$	10,596
Gross realized gains		213		202
Gross realized losses		4		—

The income tax provision related to these net realized gains and losses amounted to

$71

in fiscal year

2017

and

$69

in fiscal year

2016.

The amortized cost and fair values of debt securities at

June

30,

2017

by expected maturity are shown below. Expected maturities will differ from contractual maturities because borrowers

may

have the right to call or prepay obligations with or without call or prepayment penalties. Securities

not

due at a single maturity date, primarily mortgage-backed securities, collateralized mortgage obligations and the pooled trust preferred security are shown separately.

Available-for-sale	Amortized Cost		Fair Value
Due in one year or less	$	1,552	$	1,555
Due after one year through five years		17,428		17,727
Due after five years through ten years		28,024		28,367
Due after ten years		22,391		22,398
Total		69,395		70,047
U.S. Government-sponsored mortgage-backed and related securities		71,861		71,507
Pooled trust preferred security		155		532
Total	$	141,411	$	142,086

Held-to-maturity	Amortized Cost		Fair Value
Due after five years through ten years	$	601	$	620
Due after ten years		3,658		3,709
Total	$	4,259	$	4,329

Securities with a carrying value of approximately

$55,932

and

$55,140

were pledged at

June 30, 2017

and

2016,

respectively, to secure public deposits and commitments as required or permitted by law. At

June 30, 2017

and

2016,

there were

no

holdings of securities of any

one

issuer, other than the U.S. government and its agencies, with an aggregate book value greater than

10%

of shareholders’ equity.

The following table summarizes the securities with unrealized and unrecognized losses at

June 30, 2017

and

2016,

aggregated by investment category and length of time the individual securities have been in a continuous unrealized loss position:

	Less than 12 Months					12 Months or more					Total
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
June 30, 2017
Obligations of US government-sponsored entities and agencies	$	4,336	$	(74	)	$	—	$	—		$	4,336	$	(74	)
Obligations of states and political subdivisions		13,881		(241	)		834		(13	)		14,715		(254	)
Mortgage-backed securities - residential		42,071		(391	)		2,805		(47	)		44,876		(438	)
Mortgage-backed securities - commercial		1,458		(1	)		—		—			1,458		(1	)
Collateralized mortgage obligations - residential		5,417		(88	)		654		(12	)		6,071		(100	)
Total available-for-sale	$	67,163	$	(795	)	$	4,293	$	(72	)	$	71,456	$	(867	)

	Less than 12 Months					12 Months or more				Total
Held-to-Maturity	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
June 30, 2017
Obligations of states and political subdivisions	$	933	$	(3	)	$	—	$	—	$	933	$	(3	)

	Less than 12 Months					12 Months or more					Total
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

June 30, 2016
Obligations of states and political subdivisions	$	572	$	(6	)	$	641	$	(2	)	$	1,213	$	(8	)
Mortgage-backed securities - residential		4,899		(12	)		4,836		(14	)		9,735		(26	)
Collateralized mortgage obligations - residential		—		—			1,212		(3	)		1,212		(3	)
Total available-for-sale	$	5,471	$	(18	)	$	6,689	$	(19	)	$	12,160	$	(37	)

Management evaluates securities for other-than-temporary impairment (OTTI) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The securities portfolio is evaluated for OTTI by segregating the portfolio into

two

general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC Topic

320,

Accounting for Certain Investments in Debt and Equity Securities

.

In determining OTTI under the ASC Topic

320

model, management considers many factors, including: (

1

) the length of time and the extent to which the fair value has been less than cost, (

2

) the financial condition and near-term prospects of the issuer, (

3

) whether the market decline was affected by macroeconomic conditions, and (

4

) whether the entity has the intent to sell the debt security or more likely than

not

will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

As of

June 30, 2017,

the Corporation’s securities portfolio consisted of

252

available-for-sale securities. There were

100

securities in an unrealized loss position at

June 30, 2017,

seven

of which were in a continuous loss position for

twelve

or more months. The unrealized losses within the securities portfolio were primarily attributed to a change in market rates. At

June 30, 2017,

all of the mortgage-backed securities and collateralized mortgage obligations held by the Corporation were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Also, management monitors the financial condition of the individual municipal securities to ensure they meet minimum credit standards. Since

the Corporation does

not

intend to sell these securities and it is

not

likely the Corporation will be required to sell these securities at an unrealized loss position prior to any anticipated recovery in fair value, which

may

be maturity, management does

not

believe there is any other-than-temporary impairment related to these securities at

June 30, 2017.

Also, there was

no

other-than-temporary impairment recognized at

June 30, 2016.

Note 3 - Loans

12 Months Ended

Jun. 30, 2017

Loans, Notes, Trade and Other Receivables Disclosure [Text Block]

NOTE

3—LOANS

Major classifications of loans were as follows as of

June

30:

	2017			2016
Commercial	$	46,380		$	43,207
Commercial real estate:
Construction		5,604			7,783
Other		158,225			153,097
1 – 4 Family residential real estate:
Owner occupied		41,411			31,012
Non-owner occupied		14,415			14,471
Construction		1,988			1,256
Consumer		5,138			5,812
Subtotal		273,161			256,638
Less: Deferred loan fees and costs		(294	)		(360	)
Allowance for loan losses		(3,086	)		(3,566	)
Net loans	$	269,781		$	252,712

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ending

June 30, 2017:

							1-4 Family
				Commercial			Residential
				Real			Real
	Commercial			Estate			Estate			Consumer			Total

Allowance for loan losses:
Beginning balance	$	505		$	2,518		$	402		$	141		$	3,566
Provision for loan losses		18			581			77			(80	)		596
Loans charged-off		(6	)		(1,061	)		(44	)		(37	)		(1,148	)
Recoveries		1			—			38			33			72
Total ending allowance balance	$	518		$	2,038		$	473		$	57		$	3,086

The following table presents the activity in the allowance for loan losses by portfolio segment for the year ending

June 30, 2016:

						1-4 Family
			Commercial			Residential
			Real			Real
	Commercial		Estate			Estate			Consumer			Total

Allowance for loan losses:
Beginning balance	$	316	$	1,660		$	289		$	167		$	2,432
Provision for loan losses		189		862			414			33			1,498
Loans charged-off		—		(4	)		(311	)		(80	)		(395	)
Recoveries		—		—			10			21			31
Total ending allowance balance	$	505	$	2,518		$	402		$	141		$	3,566

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of

June 30, 2017.

Included in the recorded investment in loans is

$581

of accrued interest receivable.

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	42	$	2	$	—	$	44
Collectively evaluated for impairment		518		1,996		471		57		3,042

Total ending allowance balance	$	518	$	2,038	$	473	$	57	$	3,086

Recorded investment in loans:
Loans individually evaluated for impairment	$	444	$	1,587	$	203	$	—	$	2,234
Loans collectively evaluated for impairment		45,993		162,176		57,901		5,144		271,214

Total ending loans balance	$	46,437	$	163,763	$	58,104	$	5,144	$	273,448

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of

June 30, 2016.

Included in the recorded investment in loans is

$549

of accrued interest receivable.

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	868	$	6	$	—	$	874
Collectively evaluated for impairment		505		1,650		396		141		2,692

Total ending allowance balance	$	505	$	2,518	$	402	$	141	$	3,566

Recorded investment in loans:
Loans individually evaluated for impairment	$	1,029	$	5,105	$	758	$	—	$	6,892
Loans collectively evaluated for impairment		42,219		155,734		46,166		5,816		249,935

Total ending loans balance	$	43,248	$	160,839	$	46,924	$	5,816	$	256,827

The following table presents information related to loans individually evaluated for impairment by class of loans as of and for the year ended

June 30, 2017:

	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Commercial	$	482	$	444	$	—	$	207	$	80	$	80
Commercial real estate:
Construction		—		—		—		87		6		6
Other		1,928		1,039		—		951		105		105
1-4 Family residential real estate:
Owner occupied		104		103		—		119		—		—
Non-owner occupied		—		—		—		183		—		—
With an allowance recorded:
Commercial real estate:
Other		548		548		42		1,884		21		21
1-4 Family residential real estate:
Owner occupied		99		100		2		120		6		6
Total	$	3,161	$	2,234	$	44	$	3,551	$	218	$	218

The following table presents information related to loans individually evaluated for impairment by class of loans as of and for the year ended

June 30, 2016:

	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Commercial	$	1,033	$	1,029	$	—	$	95	$	—	$	—
Commercial real estate:
Construction		386		384		—		52		—		—
Other		2,121		2,106		—		2,344		—		—
1-4 Family residential real estate:
Owner occupied		175		174		—		357		2		2
Non-owner occupied		722		407		—		435		—		—
With an allowance recorded:
Commercial real estate:
Other		2,802		2,615		868		1,103		8		8
1-4 Family residential real estate:
Owner occupied		177		177		6		149		—		—
Non-owner occupied		—		—		—		115		—		—
Total	$	7,416	$	6,892	$	874	$	4,650	$	10	$	10

The following table presents the recorded investment in non-accrual and loans past due over

90

days still on accrual by class of loans as of

June 30, 2017

and

2016:

	June 30, 2017				June 30, 2016
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial	$	368	$	—	$	1,009	$	—
Commercial real estate:
Construction		—		—		384		—
Other		729		—		4,000		—
1 – 4 Family residential:
Owner occupied		90		—		234		—
Non-owner occupied		—		—		407		—
Consumer		—		—		—		—
Total	$	1,187	$	—	$	6,034	$	—

Non-accrual loans and loans past due

90

days still on accrual include both smaller balance homogeneous loans that are collectively evaluated for impairment and individually classified impaired loans.

The following table presents the aging of the recorded investment in past due loans as of

June 30, 2017

by class of loans:

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	—	$	—	$	35	$	35	$	46,402	$	46,437
Commercial real estate:
Construction		—		—		—		—		5,596		5,596
Other		—		—		130		130		158,037		158,167
1-4 Family residential:
Owner occupied		13		—		74		87		41,605		41,692
Non-owner occupied		—		—		—		—		14,416		14,416
Construction		—		—		—		—		1,996		1,996
Consumer		22		—		—		22		5,122		5,144
Total	$	35	$	—	$	239	$	274	$	273,174	$	273,448

The above table of past due loans includes the recorded investment in non-accrual loans of

$239

in the

90

days or greater category and

$948

in the loans

not

past due category.

The following table presents the aging of the recorded investment in past due loans as of

June 30, 2016

by class of loans:

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	123	$	—	$	—	$	123	$	43,125	$	43,248
Commercial real estate:
Construction		—		—		—		—		7,764		7,764
Other		59		—		2,110		2,169		150,906		153,075
1-4 Family residential:
Owner occupied		15		—		218		233		30,947		31,180
Non-owner occupied		—		—		196		196		14,278		14,474
Construction		—		—		—		—		1,270		1,270
Consumer		7		—		—		7		5,809		5,816
Total	$	204	$	—	$	2,524	$	2,728	$	254,099	$	256,827

The above table of past due loans includes the recorded investment in non-accrual loans of

$2,524

in the

90

days or greater category and

$3,510

in the loans

not

past due category.

Troubled Debt Restructurings:

As of

June 30, 2017,

the recorded investment of loans classified as troubled debt restructurings was

$1,740

with

$33

of specific reserves allocated to these loans. As of

June 30, 2016,

the recorded investment of loans classified as troubled debt restructurings was

$3,529

with

$43

of specific reserves allocated to these loans.

During the fiscal year ended

June 30, 2017,

the terms of certain loans were modified as troubled debt restructurings. The modification of the terms of such loans included a combination of an extension of the maturity date and the extension of additional credit to provide operating funds. The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended

June 30, 2017:

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Loans		Investment		Investment
Commercial		2	$	518	$	518
Commercial real estate:
Other		1		512		512
Total		3	$	1,030	$	1,030

The troubled debt restructurings described above did

not

increase the allowance for loan losses or result in any charge-offs during the

twelve

months ended

June 30, 2017.

As of

June 30, 2017,

the Corporation had committed to lend an additional

$175

as part of the restructurings described above. There were

no

loans classified as troubled debt restructurings that were modified within the last

twelve

months for which there was a payment default.

During the fiscal year ended

June 30, 2016,

the terms of certain loans to

one

borrower were modified as troubled debt restructurings. The modification of the terms of such loans included a combination of a reduction in the monthly payment amounts, an extension of the maturity date on

one

loan, and the extension of additional credit to provide operating funds to the borrower. The following table presents loans by class modified as troubled debt restructurings that occurred during the year ended

June 30, 2016:

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Loans		Investment		Investment
Commercial		3	$	1,058	$	1,029
Commercial real estate:
Other		3		1,294		1,487
Total		6	$	2,352	$	2,516

The troubled debt restructurings described above did

not

increase the allowance for loan losses or result in any charge-offs during the

twelve

months ended

June 30, 2016.

As of

June 30, 2016,

the Corporation had committed to lend an additional

$207

as part of the restructuring described above. There were

no

loans classified as troubled debt restructurings that were modified within the last

twelve

months for which there was a payment default.

Credit Quality Indicators:

The Corporation categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information, and current economic trends, among other factors. The Corporation analyzes loans individually by classifying the loans as to credit risk. This analysis includes loans with a total outstanding loan relationship greater than

$100

and non-homogeneous loans, such as commercial and commercial real estate loans. This analysis is performed on a monthly basis. The Corporation uses the following definitions for risk ratings:

Special Mention.

Loans classified as special mention have a potential weakness that deserves management's close attention. If left uncorrected, these potential weaknesses

may

result in deterioration of the repayment prospects for the loan or of the institution's credit position at some future date.

Substandard.

Loans classified as substandard are inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. Loans so classified have a well-defined weakness or weaknesses that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are

not

corrected.

Doubtful.

Loans classified as doubtful have all the weaknesses inherent in those classified as substandard, with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

Loans

not

meeting the criteria above that are analyzed individually as part of the above described process are considered to be pass rated loans. Loans listed as

not

rated are either less than

$100

or are included in groups of homogeneous loans. These loans are evaluated based on delinquency status, which was discussed previously.

As of

June 30, 2017,

and based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans is as follows:

			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	44,435	$	907	$	642	$	—	$	453
Commercial real estate:
Construction		4,514		1,035		—		4		43
Other		150,460		5,110		1,566		470		561
1-4 Family residential real estate:
Owner occupied		2,668		—		11		30		38,983
Non-owner occupied		13,633		210		261		187		125
Construction		1,223		—		—		—		773
Consumer		145		—		—		—		4,999
Total	$	217,078	$	7,262	$	2,480	$	691	$	45,937

As of

June 30, 2016,

and based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans is as follows:

			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	35,243	$	6,190	$	1,162	$	—	$	653
Commercial real estate:
Construction		7,305		—		384		—		75
Other		144,101		2,482		4,026		2,150		316
1-4 Family residential real estate:
Owner occupied		3,506		72		349		47		27,206
Non-owner occupied		12,999		406		486		196		387
Construction		235		—		—		—		1,035
Consumer		210		—		6		—		5,600
Total	$	203,599	$	9,150	$	6,413	$	2,393	$	35,272

The Bank has granted loans to certain of its executive officers, directors and their affiliates. A summary of activity during the year ended

June

30,

2017

of related party loans were as follows:

Principal balance, July 1	$	4,724
New loans		1,620
Effect of changes in composition of related parties		3,565
Repayments		(422	)
Principal balance, June 30	$	9,487

The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses.

+ References + Details

Note 4 - Premised and Equipment

12 Months Ended

Jun. 30, 2017

Property, Plant and Equipment Disclosure [Text Block]

NOTE

4—PREMISES

AND EQUIPMENT

Major classifications of premises and equipment were as follows as of

June

30:

	2017			2016
Land	$	1,469		$	1,469
Land improvements		340			317
Building and leasehold improvements		12,180			11,978
Furniture, fixture and equipment		5,023			4,694
Total premises and equipment		19,012			18,458
Accumulated depreciation and amortization		(5,614	)		(4,873	)
Premises and equipment, net	$	13,398		$	13,585

Depreciation expense was

$781

and

$647

for the years ended

June 30, 2017

and

2016,

respectively.

The Corporation is obligated under non-cancelable operating leases for facilities and equipment. The approximate minimum annual rentals and commitments under these non-cancelable agreements and leases with remaining terms in excess of

one

year are as follows:

Twelve Months Ending June 30
2018	$	97
2019		50
2020		50
2021		25
Total	$	222

Rent expense incurred was

$158

and

$159

during the years ended

June 30, 2017

and

2016,

respectively.

Note 5 - Deposits

12 Months Ended

Jun. 30, 2017

Deposit Liabilities Disclosures [Text Block]

NOTE

5—DEPOSITS

The aggregate amount of time deposits, each with a minimum denomination of

$250

was

$14,252

and

$14,176

as of

June 30, 2017

and

2016,

respectively.

Scheduled maturities of time deposits at

June

30,

2017

were as follows:

Twelve Months Ending June 30
2018	$	34,935
2019		17,962
2020		5,948
2021		3,789
2022		3,172
Thereafter		705
	$	66,511

Related party deposits totaled

$4,828

as of

June

30,

2017

and

$5,386

as of

June

30,

2016.

Note 6 - Short-term Borrowings

12 Months Ended

Jun. 30, 2017

Debt Disclosure [Text Block]

NOTE

6—SHORT

-TERM BORROWINGS

Short-term borrowings consisted of repurchase agreements and federal fund purchased. Securities sold under agreements to repurchase are utilized to facilitate the needs of our customers. Physical control is maintained for all securities pledged to secure repurchase agreements. Information concerning all short-term borrowings at

June

30,

2017

and

2016,

maturing in less than

one

year is summarized as follows:

	2017			2016
Balance at June 30	$	23,986		$	19,129
Average balance during the year		21,053			21,196
Maximum month-end balance		28,073			25,759
Average interest rate during the year		0.43	%		0.18	%
Weighted average rate, June 30		0.82	%		0.20	%

Securities available-for-sale pledged for repurchase agreements as of

June 30, 2017

and

2016

are presented in the following table.

	Overnight and Continuous
	2017		2016
U.S. government-sponsored entities and agencies pledged	$	2,015	$	2,066
Residential mortgage-backed securities pledged		20,923		16,864
Collateralized mortgage obligations pledged		2,355		1,510
Total pledged	$	25,293	$	20,440
Repurchase agreements	$	23,986	$	19,129

Total interest expense on short-term borrowings was

$90

and

$39

for the years ended

June 30, 2017

and

2016,

respectively.

Note 7 - Federal Home Loan Bank Advances

12 Months Ended

Jun. 30, 2017

Federal Home Loan Bank Advances, Disclosure [Text Block]

NOTE

7—FEDERAL

HOME LOAN BANK ADVANCES

A summary of Federal Home Loan Bank (FHLB) advances were as follows:

						June 30, 2017					June 30, 2016
	Stated Interest Rate Range							Weighted Average					Weighted Average
Advance Type	From			To		Amount		Rate			Amount		Rate
Fixed-rate, amortizing		4.30	%	4.30	%	$	120		4.30	%	$	181		4.30	%
Fixed-rate		0.43		3.24			12,200		1.47			17,100		1.45

Each fixed rate advance has a prepayment penalty equal to the present value of

100%

of the lost cash flow based upon the difference between the contract rate on the advance and the current rate on a comparable new advance. The following table is a summary of the scheduled principal payments for all advances:

Twelve Months Ending June 30	Principal Payments
2018	$	570
2019		2,050
2020		1,500
2021		1,500
2022		1,700
Thereafter		5,000
Total	$	12,320

Pursuant to collateral agreements with the FHLB, advances are secured by all the stock invested in the FHLB and certain qualifying

first

mortgage and multi-family loans. The advances were collateralized by

$49,023

of

first

mortgage and multi-family loans and

$28,085

of

first

mortgage loans under a blanket lien arrangement at

June 30, 2017

and

2016,

respectively. Based on this collateral and the Corporation’s holdings of FHLB stock, the Bank was eligible to borrow up to a total of

$14,325

in additional advances at

June 30, 2017.

Note 8 - Employee Benefit Plans

12 Months Ended

Jun. 30, 2017

Compensation and Employee Benefit Plans [Text Block]

NOTE

8—EMPLOYEE

BENEFIT PLANS

The Bank maintains a

401

(k) savings and retirement plan that permits eligible employees to make before- or after-tax contributions to the plan, subject to the dollar limits from Internal Revenue Service regulations. The Bank matches

100%

of the employee’s voluntary contributions to the plan based on the amount of each participant’s contributions up to a maximum of

4%

of eligible compensation. All regular full-time and part-time employees who complete

six

months of service and are at least

21

years of age are eligible to participate.

Amounts charged to operations were

$190

and

$181,

for the years ended

June 30, 2017

and

2016,

respectively.

The Bank maintains a nonqualified Salary Continuation Plan (SCP) to reward and encourage certain Bank executives to remain employees of the Bank. The SCP is considered an unfunded plan for tax and Employee Retirement Income Security Act (ERISA) purposes and all obligations arising under the SCP are payable from the general assets of the Corporation. The estimated present value of future benefits to be paid to certain current and former executives totaled

$2,152

as of

June

30,

2017

and

$2,020

as of

June

30,

2016

and is included in other liabilities. For purposes of calculating the present value of future benefits, the discount rate in effect at

June 30, 2017

and

2016

was

4.5%

.

For the years ended

June 30, 2017

and

2016,

$196

and

$191,

respectively, have been charged to expense in connection with the SCP. Distributions to participants were

$64

for each of the years ending

June 30, 2017

and

2016.

The

2010

Omnibus Incentive Plan (

2010

Plan) is a nonqualified share based compensation plan. The

2010

Plan was established to promote alignment between key employee’s performance and the Corporation’s shareholder interests by motivating performance through the award of stock-based compensation. The

2010

Plan is intended to attract, retain and motivate talented employees and as a means to compensate outside directors for their service to the Corporation. The

2010

Plan has been approved by the Corporation’s shareholders. The Compensation Committee of the Corporation’s Board of Directors has sole authority to select the employees, establish the awards to be issued, and approve the terms and conditions of each award contract.

Under the

2010

Plan, the Corporation

may

grant, among other things, nonqualified stock options, incentive stock options, stock appreciation rights, restricted stock, restricted stock units, or any combination thereof to any employee and outside director. Each award is evidenced by an award agreement that specifies the number of shares awarded, the vesting period, the performance requirements, and such other provisions as the Compensation Committee determines. Upon a change-in-control of the Corporation, as defined in the

2010

Plan, all outstanding awards immediately vest.

The Corporation has granted restricted stock awards to certain employees and directors. Restricted stock awards are issued at

no

cost to the recipient, and can be settled only in shares at the end of the vesting period. Over a

four

-year period, a portion of these awards vest on each anniversary date of the award if certain specified net income performance targets as established by the Compensation Committee are achieved. Restricted stock awards provide the holder with full voting rights and dividends during the vesting period. Cash dividends are reinvested into shares of stock and are subject to the same restrictions and vesting as the initial award. All dividends are forfeitable in the event the shares do

not

vest. The fair value of the restricted stock awards, which is used to measure compensation expense, is the closing market price of the Corporation’s common stock on the date of the grant and compensation expense is recognized over the vesting period of the awards. Restricted stock awarded during the period presented vest under a graduated schedule over a

four

-year period.

The following table summarizes the status of the restricted stock awards:

	Restricted Stock Awards			Weighted-Average Grant Date Fair Value Per Share
Outstanding at June 30, 2016		3,564		$	15.33
Expired		(2,135	)		15.05
Non-vested at June 30, 2017		1,429			15.75

There was

no

expense recognized in the

2016

and

2017

fiscal years in connection with the restricted stock awards since grants scheduled to vest expired due to

not

meeting the performance targets. The

1,429

non-vested awards outstanding as of

June 30, 2017

expired with the issuance of the Corporation’s financial statements.

Note 9 - Income Taxes

12 Months Ended

Jun. 30, 2017

Income Tax Disclosure [Text Block]

NOTE

9—INCOME

TAXES

The provision for income taxes consists of the following for the years ended

June

30:

	2017		2016
Current income taxes	$	513	$	421
Deferred income tax expense (benefit)		128		(142	)
	$	641	$	279

The net deferred income tax asset consists of the following components at

June

30:

	2017			2016
Deferred tax assets:
Allowance for loan losses	$	919		$	1,082
Deferred compensation		771			721
Recognized loss on impairment of security		265			265
AMT credit carryforward		220			143
Deferred income		119			140
Other real estate owned deferred gain		12			13
Other real estate owned write down		10			—
Non-accrual loan interest income		58			72
Gross deferred tax asset		2,374			2,436

Deferred tax liabilities:
Depreciation		(788	)		(761	)
Loan fees		(320	)		(279	)
Prepaid expenses		(89	)		(91	)
FHLB stock dividends		(166	)		(166	)
Net unrealized securities gain		(229	)		(1,231	)
Gross deferred tax liabilities		(1,592	)		(2,528	)
Net deferred asset (liability)	$	782		$	(92	)

The difference between the provision for income taxes and amounts computed by applying the statutory income tax rate of

34%

to statutory income before taxes consists of the following for the years ended

June

30:

	2017			2016
Income taxes computed at the statutory rate on pretax income	$	1,236		$	825
Tax exempt income		(498	)		(491	)
Cash surrender value income		(83	)		(65	)
Tax credit		(25	)		—
Other		11			10
	$	641		$	279

At

June 30, 2017

and

June 30, 2016,

the Corporation had

no

unrecognized tax benefits recorded. The Corporation does

not

expect the total amount of unrecognized tax benefits to significantly increase within the next

twelve

months. There were

no

interest or penalties recorded for the years ended

June 30, 2017

and

2016

and there were

no

amounts accrued for interest and penalties at

June 30, 2017

and

2016.

The Corporation and the Bank are subject to U.S. federal income tax as an income-based tax and a capital-based franchise tax in the state of Ohio. The Corporation and the Bank are

no

longer subject to examination by taxing authorities for years before

2013.

Note 10 - Regulatory Matters

12 Months Ended

Jun. 30, 2017

Regulatory Capital Requirements under Banking Regulations [Text Block]

NOTE

10—REGULATORY

MATTERS

The Bank is subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and prompt corrective-action regulations involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings, and other factors and the regulators can lower classifications in certain cases. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the financial statements. Management believes as of

June 30, 2017,

the Bank has met all capital adequacy requirements to which it is subject.

The prompt corrective action regulations provide

five

classifications, including well capitalized, adequately capitalized, under-capitalized, significantly undercapitalized, and critically undercapitalized, although these terms are

not

used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and plans for capital restoration are required.

As of fiscal year-end

2017

and

2016,

the Corporation met the definition of a small bank holding company and, therefore, was exempt from consolidated risk-based and leverage capital adequacy guidelines for bank holding companies. The Basel III Capital Rules became effective for the Bank on

January

1,

2015

and certain provisions are subject to a phase-in period. The implementation of the capital conservation buffer began on

January

1,

2016

at the

0.625%

level and will be phased in over a

four

-year period (increasing by that amount on each subsequent

January

1,

until it reaches

2.5%

on

January

1,

2019

). The capital conservation buffer for

2017

is

1.250%.

The capital conservation buffer is designed to absorb losses during periods of economic stress. Banking institutions with a ratio of Common Equity Tier

1

capital to risk-weighted assets above the minimum but below the conservation buffer will face constraints on dividends, equity repurchases and compensation based on the amount of the shortfall. The net unrealized gain or loss on available for sale securities is

not

included in computing regulatory capital.

The following table presents actual and required capital ratios as of

June

30,

2017

and

June 30, 2016

for the Bank.

	Actual					Minimum Capital Required For Capital Adequacy Purposes					Minimum Required To Be Considered Well Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
June 30, 2017
Common equity Tier 1 to risk-weighted assets Bank	$	41.4		13.21	%	$	18.0		4.50	%	$	20.4		6.50	%
Tier 1 capital to risk weighted assets Bank		41.4		13.21			22.7		6.00			25.1		8.00
Total Capital to risk weighted assets Bank		44.5		14.20			29.0		8.00			31.4		10.00
Tier 1 capital to average assets Bank		41.4		9.06			18.3		4.00			22.9		5.00

	Actual					Minimum Capital Required - Basel III					Minimum Required To Be Considered Well Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
June 30, 2016
Common equity Tier 1 to risk-weighted assets Bank	$	39.4		13.37	%	$	15.1		4.50	%	$	19.1		6.50	%
Tier 1 capital to risk weighted assets Bank		39.4		13.37			19.5		6.00			23.6		8.00
Total Capital to risk weighted assets Bank		42.9		14.58			25.4		8.00			29.4		10.00
Tier 1 capital to average assets Bank		39.4		9.25			17.0		4.00			21.3		5.00

As of the latest regulatory examination, the Bank was categorized as well capitalized. There are

no

conditions or events since that examination that management believes

may

have changed the Bank’s category.

The Corporation’s principal source of funds for dividend payment is dividends received from the Bank. Banking regulations limit the amount of dividends that

may

be paid without prior approval of regulatory agencies. Under these regulations, the amount of dividends that

may

be paid in any calendar year is limited to the current year’s net profits, combined with the retained net profits of the preceding

two

years, subject to the capital requirements described above. As of

June

30,

2017

the Bank could, without prior approval, declare a dividend of approximately

$3,612.

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1G
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1C
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1E
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1H
-URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1A
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1F
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 505
-Section 50
-Paragraph 1D
-URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826

+ Details

Note 11 - Commitments with Off-balance Sheet Risk	12 Months Ended
Note 11 - Commitments with Off-balance Sheet Risk	Jun. 30, 2017
Notes to Financial Statements
Commitments with Off-Balance Sheet Risk Disclosure [Text Block]	NOTE 11—COMMITMENTS WITH OFF-BALANCE SHEET RISK The Bank is a party to commitments to extend credit in the normal course of business to meet the financing needs of its customers. Commitments are agreements to lend to customers providing there are no violations of any condition established in the contract. Commitments to extend credit have a fixed expiration date or other termination clause. These instruments involve elements of credit and interest rate risk more than the amount recognized in the statements of financial position. The Bank uses the same credit policies in making commitments to extend credit as it does for on-balance sheet instruments. The Bank evaluates each customer’s credit on a case by case basis. The amount of collateral obtained is based on management’s credit evaluation of the customer. The amount of commitments to extend credit and the exposure to credit loss for non-performance by the customer was $53,029 and $46,696 as of June 30, 2017 and 2016, respectively. Of the June 30, 2017 commitments, $41,167 carried variable rates and $11,862 carried fixed rates of interest ranging from 2.45% to 6.50% with maturity dates from July 2017 to June 2048. Of the June 30, 2016 commitments, $44,228 carried variable rates and $2,468 carried fixed rates of interest ranging from 3.10% to 5.99%. Financial standby letters of credit were $713 as of June 30, 2017 and $1,032 as of June 30, 2016. In addition, commitments to extend credit of $8,121 and $7,829 as of June 30, 2017 and 2016, respectively, were available to checking account customers related to the overdraft protection program. Since some loan commitments expire without being used, the amount does not necessarily represent future cash commitments.

Note 12 - Fair Value

12 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Text Block]

NOTE

12—FAIR

VALUE

Fair value is the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants on the measurement date. There are

three

levels of inputs that

may

be used to measure fair values:

Level

1:

Quoted prices (unadjusted) for identical assets or liabilities in active markets that the entity has the ability to access as of the measurement date.

Level

2:

Significant other observable inputs other than Level

1

prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are

not

active; or other inputs that are observable or can be corroborated by observable market data.

Level

3:

Significant unobservable inputs that reflect a company’s own assumptions about the assumptions that market participants would use in pricing an asset or liability.

Financial assets and financial liabilities measured at fair value on a recurring basis include the following:

Securities available-for-sale:

When available, the fair values of available-for-sale securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level

1

inputs). For securities where quoted market prices are

not

available, fair values are calculated based on market prices of similar securities (Level

2

inputs). For securities where quoted prices or market prices of similar securities are

not

available, fair values are calculated using discounted cash flows or other unobservable inputs (Level

3

inputs).

Assets and liabilities measured at fair value on a recurring basis are summarized below, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

			Fair Value Measurements at June 30, 2017 Using
	Balance at June 30, 2017		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of government-sponsored entities	$	12,587	$	—	$	12,587	$	—
Obligations of states and political subdivisions		57,460		—		57,460		—
Mortgage-backed securities - residential		63,838		—		63,838		—
Mortgage-backed securities - commercial		1,458		—		1,458		—
Collateralized mortgage obligations		6,211		—		6,211		—
Pooled trust preferred security		532		—		532		—

			Fair Value Measurements at June 30, 2016 Using
	Balance at June 30, 2016		Level 1		Level 2		Level 3
Securities available-for-sale:
Obligations of government-sponsored entities	$	10,044	$	—	$	10,044	$	—
Obligations of states and political subdivisions		55,954		—		55,954		—
Mortgage-backed securities - residential		59,596		—		59,596		—
Mortgage-backed securities - commercial		1,526		—		1,526		—
Collateralized mortgage obligations		5,820		—		5,820		—
Pooled trust preferred security		429		—		429		—

There were

no

transfers between Level

1

and Level

2

during the

2016

or the

2017

fiscal year.

Certain financial assets and financial liabilities are measured at fair value on a non-recurring basis; that is, the instruments are

not

measured at fair value on an ongoing basis but are subject to fair value adjustments in certain circumstances. Financial assets and financial liabilities measured at fair value on a non-recurring basis include the following:

Impaired Loans:

At the time a loan is considered impaired, it is valued at the lower of cost or fair value. Impaired loans carried at fair value generally receive specific allocations of the allowance for loan losses or are charged down to their fair value. For collateral dependent loans, fair value is commonly based on recent real estate appraisals. These appraisals

may

utilize a single valuation approach or a combination of approaches including comparable sales and the income approach. Adjustments are routinely made in the appraisal process by the appraisers to adjust for differences between the comparable sales and income data available. Such adjustments are usually significant and typically result in a Level

3

classification of the inputs for determining fair value.

Other Real Estate Owned:

Assets acquired through or instead of loan foreclosure are initially recorded at fair value less costs to sell when acquired, establishing a new cost basis. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. Real estate owned properties are evaluated on a quarterly basis for additional impairment and adjusted accordingly.

Financial assets and financial liabilities measured at fair value on a non-recurring basis are summarized below:

			Fair Value Measurements at June 30, 2017 Using
	Balance at June 30, 2017		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	130	$	—	$	—	$	130
Other Real Estate Owned:
1-4 Family residential real estate		71	$	—	$	—		71

			Fair Value Measurements at June 30, 2016 Using
	Balance at June 30, 2016		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	1,206	$	—	$	—	$	1,206
1-4 Family residential real estate – Non-owner occupied		197		—		—		197

Impaired loans, measured for impairment using the fair value of the collateral, had a recorded investment of

$130,

with

no

valuation allowance at

June 30, 2017.

The resulting impact to the provision for loan losses was an increase of

$314

being recorded for the year ended

June 30, 2017.

Collateral dependent impaired loans had a recorded investment of

$2,150,

with a valuation allowance of

$747

at

June 30, 2016.

The resulting impact to the provision for loan losses was an increase of

$1,010

being recorded for the year ended

June 30, 2016.

Other real estate owned which is measured at the lower of carrying or fair value less costs to sell, had a net carrying amount of

$71,

which was made up of the outstanding balance of

$103,

net of a valuation allowance of

$32

at

June 30, 2017,

resulting in a provision for other real estate owned losses of

$32

for the year ended

June 30, 2017.

There were

no

other real estate owned being carried at fair value as of

June 30, 2016.

The following table presents quantitative information about Level

3

fair value measurements for financial instruments measured at fair value on a non-recurring basis at

June 30, 2017:

	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	130	Bid Indication		N/A		0.0	%		0.0	%
Other Real Estate Owned:
1-4 Family residential real estate	$	71	Bid Indication		N/A		0.0	%		0.0	%

The following table presents quantitative information about Level

3

fair value measurements for financial instruments measured at fair value on a non-recurring basis at

June 30, 2016:

	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	459	Settlement Contract		N/A		0.0	%		0.0	%
Commercial Real Estate – Other	$	127	Bid Indications		N/A		0.0	%		0.0	%
Commercial Real Estate – Other	$	620	Bid Indications		N/A		0.0	%		0.0	%
1-4 Family residential real estate – Non-owner occupied	$	197	Bid Indications		N/A		0.0	%		0.0	%

The following table shows the estimated fair values of financial instruments that are reported at amortized cost in the Corporation’s consolidated balance sheets, segregated by the level of the valuation inputs within the fair value hierarchy utilized to measure fair value:

	2017				2016
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	9,912	$	9,912	$	10,181	$	10,181
Level 2 inputs:
Certificates of deposits in other financial institutions		3,921		3,927		5,906		5,906
Loans held for sale		1,252		1,286		1,048		1,067
Accrued interest receivable		1,212		1,212		1,077		1,077
Level 3 inputs:
Securities held-to-maturity		4,259		4,329		3,494		3,619
Loans, net		269,781		266,041		252,712		253,155
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		307,960		307,960		281,640		281,640
Time deposits		66,511		66,535		65,008		65,111
Short-term borrowings		23,986		23,986		19,129		19,129
Federal Home Loan Bank advances		12,320		12,054		17,281		17,486
Accrued interest payable		40		40		40		40

The assumptions used to estimate fair value are described as follows:

Cash and cash equivalents:

The carrying value of cash, deposits in other financial institutions and federal funds sold were considered to approximate fair value resulting in a Level

1

classification.

Certificates of deposits in other financial institutions:

Fair value of certificates of deposits in other financial institutions was estimated using current rates for deposits of similar remaining maturities resulting in a Level

2

classification.

Accrued interest receivable and payable, demand and savings deposits and short-term borrowings

: The carrying value of accrued interest receivable and payable, demand and savings deposits and short-term borrowings were considered to approximate fair value due to their short-term duration resulting in a Level

2

classification.

Loans held for sale:

The fair value of loans held for sale is estimated based upon binding contracts and quotes from

third

party investors resulting in a Level

2

classification.

Loans:

Fair value for loans was estimated for portfolios of loans with similar financial characteristics. For adjustable rate loans that reprice at least annually and for fixed rate commercial loans with maturities of

six

months or less which possess normal risk characteristics, carrying value was determined to be fair value. Fair value of other types of loans (including adjustable rate loans which reprice less frequently than annually and fixed rate term loans or loans which possess higher risk characteristics) was estimated by discounting future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar anticipated maturities resulting in a Level

3

classification. The methods utilized to estimate the fair value of loans do

not

necessarily represent an exit price.

Securities held-to-maturity:

The held-to-maturity securities are general obligation and revenue bonds issued by local municipalities.

The fair value of these securities are calculated using a spread to the applicable municipal fair market curve resulting in a Level

3

classification.

Time deposits:

Fair value of fixed-maturity certificates of deposit was estimated using the rates offered at

June 30, 2017

and

2016,

for deposits of similar remaining maturities, resulting in Level

2

calassification. Estimated fair value does

not

include the benefit that result from low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market.

Federal Home Loan Bank advances:

Fair value of Federal Home Loan Bank advances was estimated using current rates at

June 30, 2017

and

2016

for similar financing resulting in a Level

2

classification.

Federal bank and other restricted stocks, at cost:

Federal bank and other restricted stocks include stock acquired for regulatory purposes, such as Federal Home Loan Bank stock and Federal Reserve Bank stock that are accounted for at cost due to restrictions placed on their transferability; and therefore, are

not

subject to the fair value disclosure requirements.

Off-balance sheet commitments:

The Corporation’s lending commitments have variable interest rates and “escape” clauses if the customer’s credit quality deteriorates. Therefore, the fair values of these items are

not

significant and are

not

included in the above table.

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

Note 13 - Parent Company Financial Statements

12 Months Ended

Jun. 30, 2017

Condensed Financial Information of Parent Company Only Disclosure [Text Block]

NOTE

13—PARENT

COMPANY FINANCIAL STATEMENTS

Condensed financial information of Consumers Bancorp. Inc. (parent company only) follows:

	June 30, 2017		June 30, 2016
Condensed Balance Sheets
Assets
Cash	$	36	$	46
Securities, available-for-sale		1,651		2,050
Other assets		61		50
Investment in subsidiary		41,843		41,708
Total assets	$	43,591	$	43,854
Liabilities
Other liabilities	$	56	$	61
Shareholders’ equity		43,535		43,793
Total liabilities & shareholders’ equity	$	43,591	$	43,854

	Year Ended June 30, 2017			Year Ended June 30, 2016
Condensed Statements of Income and Comprehensive Income
Cash dividends from Bank subsidiary	$	1,065		$	1,425
Other income		51			46
Other expense		213			206
Income before income taxes and equity in undistributed net income of subsidiary		903			1,265
Income tax benefit		(53	)		(50	)
Income before equity in undistributed net income of Bank subsidiary		956			1,315
Equity in undistributed net income of subsidiary		2,038			832
Net income	$	2,994		$	2,147
Comprehensive income	$	1,050		$	3,637

Condensed Statements of Cash Flows	Year Ended June 30, 2017			Year Ended June 30, 2016
Cash flows from operating activities
Net income	$	2,994		$	2,147
Equity in undistributed net income of Bank subsidiary		(2,038	)		(832	)
Securities amortization and accretion, net		(10	)		(11	)
Gain on sale of securities		(11	)		—
Change in other assets and liabilities		6			(2	)
Net cash flows from operating activities		941			1,302
Cash flows from investing activities
Proceeds from the sale of available-for-sale securities		357			—
Net cash flows from investing activities		357			—
Cash flows from financing activities
Dividend paid		(1,308	)		(1,310	)
Net cash flows from financing activities		(1,308	)		(1,310	)
Change in cash and cash equivalents		(10	)		(8	)
Beginning cash and cash equivalents		46			54
Ending cash and cash equivalents	$	36		$	46

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Note 14 - Earnings Per Share

12 Months Ended

Jun. 30, 2017

Earnings Per Share [Text Block]

Note

14

– EARNINGS PER SHARE

Basic earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period and is equal to net income divided by the weighted average number of shares outstanding during the period. Diluted earnings per share is the amount of earnings available to each share of common stock outstanding during the reporting period adjusted to include the effect of potentially dilutive common shares that

may

be issued upon the vesting of restricted stock awards. The following table details the calculation of basic and diluted earnings per share:

	For the year Ended June 30,
	201 7		2016
Basic:
Net income available to common shareholders	$	2,994	$	2,147
Weighted average common shares outstanding		2,724,293		2,725,276
Basic income per share	$	1.10	$	0.79

Diluted:
Net income available to common shareholders	$	2,994	$	2,147
Weighted average common shares outstanding		2,724,293		2,725,276
Dilutive effect of restricted stock		32		103
Total common shares and dilutive potential common shares		2,724,325		2,725,379
Dilutive income per share	$	1.10	$	0.79

Note 15 - Accumulated Other Comprehensive Income (Loss)

12 Months Ended

Jun. 30, 2017

Comprehensive Income (Loss) Note [Text Block]

Note

15

–ACCUMULATED OTHER COMPREHENSIVE INCOME (LOSS)

The components of other comprehensive income related to unrealized gains and losses on available-for-sale securities for the periods ended

June 30, 2017

and

June 30, 2016,

were as follows:

	Pretax			Tax Effect			After-tax			Affected Line Item in Consolidated Statements of Income

Balance as of June 30, 2015	$	1,363		$	(464	)	$	899
Unrealized holding loss on available-for-sale securities arising during the period		2,460			(837	)		1,623
Amounts reclassified from accumulated other comprehensive income		(202	)		69			(133	)	(a)(b)
Net current period other comprehensive gain		2,258			(768	)		1,490
Balance as of June 30, 2016		3,621			(1,232	)		2,389
Unrealized holding gain on available-for-sale securities arising during the period		(2,737	)		931			(1,806	)
Amounts reclassified from accumulated other comprehensive income		(209	)		71			(138	)	(a)(b)
Net current period other comprehensive loss		(2,946	)		1,002			(1,944	)
Balance as of June 30, 201 7	$	675		$	(230	)	$	445

(a) Securities gain, net

(b) Income tax expense

Significant Accounting Policies (Policies)

12 Months Ended

Jun. 30, 2017

Accounting Policies [Abstract]

Consolidation, Policy [Policy Text Block]

Principles of Consolidation:

The consolidated financial statements include the accounts of Consumers Bancorp, Inc. (Corporation) and its wholly owned subsidiary, Consumers National Bank (Bank), together referred to as the Corporation. All significant intercompany transactions have been eliminated in the consolidation.

Nature of Operations [Policy Text Block]

Nature of Operations:

Consumers Bancorp, Inc. is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, a broad array of products and services throughout its

primary market area of Carroll, Columbiana, Jefferson, Stark, Summit, Wayne and contiguous counties in Ohio.

The Bank’s business involves attracting deposits from businesses and individual customers and using such deposits to originate commercial, mortgage and consumer loans in its primary market area.

Segment Reporting, Policy [Policy Text Block]

Business Segment Information:

The Corporation is engaged in the business of commercial and retail banking, which accounts for substantially all of its revenues, operating income, and assets. Accordingly, all of its operations are reported in

one

segment, banking.

Use of Estimates, Policy [Policy Text Block]

Use of Estimates:

To prepare financial statements in conformity with U.S. generally accepted accounting principles, management makes estimates and assumptions based on available information. These estimates and assumptions affect the amounts reported in the financial statements and the disclosures provided, and actual results could differ.

Cash and Cash Equivalents, Policy [Policy Text Block]

Cash Flows:

Cash and cash equivalents include cash, deposits with other financial institutions with original maturities of less than

90

days and federal funds sold. Net cash flows are reported for customer loan and deposit transactions, interest bearing deposits in other financial institutions and short-term borrowings. Additional cash flow information was as follows:

	Year Ended June 30,
	2017		2016
Cash paid for interest	$	1,108	$	903
Cash paid for Federal income taxes		300		725
Non-cash transactions:
Transfer from loans to repossessed assets		113		38
Transfer from loans held for sale to portfolio		342		—
Expired and forfeited dividend reinvestment plan shares associated with restricted stock awards that were retired to treasury stock		4		6

Interest Bearing Deposits in Other Financial Institutions [Policy Text Block]

Interest–Bearing Deposits in Other Financial Institutions

: Interest-bearing deposits in other financial institutions mature within

one

year and are carried at cost.

Certificate of Deposits in Financial Institutions [Policy Text Block]

Certificates of Deposit in Financial Institutions:

Certificates of deposit in other financial institutions are carried at cost.

Cash Reserves [Policy Text Block]

Cash Reserves:

The Bank is required to maintain cash on hand and non-interest bearing balances on deposit with the Federal Reserve Bank to meet regulatory reserve and clearing requirements. The required reserve balance at

June 30, 2017

and

2016

was

$304

and

$5,652,

respectively.

Marketable Securities, Policy [Policy Text Block]

Securities:

Securities are generally classified into either held-to-maturity or available-for-sale categories. Held-to-maturity securities are carried at amortized cost and are those that the Corporation has the positive intent and ability to hold to maturity. Available-for-sale securities are those that the Corporation

may

decide to sell before maturity if needed for liquidity, asset-liability management, or other reasons. Available-for-sale securities are reported at fair value, with unrealized gains or losses included in other comprehensive income (loss) as a separate component of equity, net of tax.

Interest income includes amortization of purchase premiums and accretion of discounts. Premiums and discounts on securities are amortized on the level-yield method without anticipating prepayments, except for mortgage-backed securities where prepayments are anticipated. Gains and losses on sales are recorded on the trade date and determined using the specific identification method.

Management evaluates securities for other-than-temporary impairment (OTTI) at least on a quarterly basis and more frequently when economic or market conditions warrant such an evaluation. For securities in an unrealized loss position, management considers the extent and duration of the unrealized loss, and the financial condition and near-term prospects of the issuer. Management also assesses whether it intends to sell, or it is more likely than

not

that it will be required to sell, a security in an unrealized loss position before recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the entire difference between amortized cost and fair value is recognized as impairment through earnings. For debt securities that do

not

meet the aforementioned criteria, the amount of impairment is split into

two

components as follows:

1

) OTTI related to credit loss, which must be recognized in the income statement and

2

) OTTI related to other factors, which is recognized in other comprehensive income. The credit loss is defined as the difference between the present value of the cash flows expected to be collected and the amortized cost basis. For equity securities, the entire amount of impairment is recognized through earnings.

Federal Home Loan Bank FHLB Stock [Policy Text Block]

Federal Bank and Other Restricted Stocks:

The Bank is a member of the Federal Home Loan Bank (FHLB) system. Members are required to own a certain amount of stock based on the level of borrowings and other factors, and

may

invest in additional amounts. FHLB stock, included with Federal bank and other restricted stocks on the Consolidated Balance Sheet, is carried at cost, classified as a restricted security and periodically evaluated for impairment based on ultimate recovery of par value. Federal Reserve Bank stock is also carried at cost. Since these stocks are viewed as a long-term investment, impairment is based on ultimate recovery of par value. Both cash and stock dividends are reported as income.

Finance, Loan and Lease Receivables, Held-for-sale, Policy [Policy Text Block]

Loans Held for Sale

: Mortgage loans originated and intended for sale in the secondary market are carried at the lower of aggregate cost or fair value, as determined by outstanding commitments from investors. Mortgage loans held for sale are generally sold with servicing rights released. Net unrealized losses, if any, are recorded as a valuation allowance and charged to earnings. Gains and losses on sales of mortgage loans are based on the difference between the selling price and the carrying value of the related loan sold.

Policy Loans Receivable, Policy [Policy Text Block]

Loans:

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or payoff are reported at the principal balance outstanding, net of deferred loan fees and costs, and an allowance for loan losses. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, are deferred and recognized in interest income using the level-yield method without anticipating prepayments. The recorded investment in loans includes accrued interest receivable.

Interest income on commercial, commercial real estate and

1

-

4

family residential loans is discontinued at the time the loan is

90

days delinquent unless the loan is well-secured and in the process of collection. Consumer loans are typically charged off

no

later than

120

days past due. Past due status is determined by the contractual terms of the loan. In all cases, loans are placed on non-accrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but

not

received on loans placed on non-accrual is reversed against interest income. Interest received on such loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when the customer has exhibited the ability to repay and demonstrated this ability over at least a consecutive

six

-month period and future payments are reasonably assured.

Loan Commitments, Policy [Policy Text Block]

Loan Commitments and Related Financial Instruments:

Financial instruments include off-balance sheet credit instruments, such as commitments to make loans and commercial letters of credit, issued to meet customer financing needs. The face amount for these items represents the exposure to loss, before considering customer collateral or ability to repay. Such financial instruments are recorded when funded.

Concentration Risk, Credit Risk, Policy [Policy Text Block]

Concentrations of Credit Risk:

The Bank grants consumer, real estate and commercial loans primarily to borrowers in Carroll, Columbiana, Jefferson, Stark, Summit and Wayne counties. Therefore, the Corporation’s exposure to credit risk is significantly affected by changes in the economy in these counties. Automobiles and other consumer assets, business assets and residential and commercial real estate secure most loans.

Loans and Leases Receivable, Allowance for Loan Losses Policy [Policy Text Block]

Allowance for Loan Losses:

The allowance for loan losses is a valuation allowance for probable incurred credit losses. Loan losses are charged against the allowance when management believes the uncollectability of a loan balance is confirmed. Subsequent recoveries, if any, are credited to the allowance. Management estimates the allowance balance required based on past loan loss experience, the nature and volume of the portfolio, information about specific borrower situations and estimated collateral values, economic conditions and other factors. Allocations of the allowance

may

be made for specific loans, but the entire allowance is available for any loan that, in management’s judgment, should be charged-off.

The allowance consists of specific and general components. The specific component relates to loans that are individually classified as impaired. The general component covers non-classified loans and is based on historical loss experience adjusted for current factors.

A loan is considered impaired when, based on current information and events, it is probable that the Corporation will be unable to collect all amounts due according to the contractual terms of the loan agreement. Loans, for which the terms have been modified resulting in a concession, and for which the borrower is experiencing financial difficulties, are considered troubled debt restructurings and classified as impaired. Factors considered by management in determining impairment include payment status, collateral value, and the probability of collecting scheduled principal and interest payments when due. Loans that experience insignificant payment delays and payment shortfalls generally are

not

classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed.

Impairment is evaluated collectively for smaller-balance loans of similar nature such as residential mortgage, consumer loans and on an individual loan basis for other loans. If a loan is impaired, a portion of the allowance is allocated so the loan is reported, net, at the present value of estimated future cash flows using the loan’s existing rate or at the fair value of collateral if repayment is expected from the collateral. Loans are evaluated for impairment when payments are delayed, typically

90

days or more, or when it is probable that

not

all principal and interest amounts will be collected according to the original terms of the loan. Troubled debt restructurings are separately identified for impairment disclosures and are measured at the present value of estimated future cash flows using the loan’s effective interest rate at inception. If a troubled debt restructuring is considered to be a collateral dependent loan, the loan is reported, net, at the fair value of the collateral. For troubled debt restructurings that subsequently default, the Corporation determines the amount of reserve in accordance with the accounting policy for the allowance for loan losses.

The general component covers non-impaired loans and is based on historical loss experience adjusted for current factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Corporation over the most recent

two

-year period. This actual loss experience is supplemented with economic and other factors based on the risks present for each portfolio segment. These factors include consideration of the following: levels of and trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures and practices; experience, ability and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. The following portfolio segments have been identified:

Commercial:

Commercial loans are made for a wide variety of general business purposes, including financing for equipment, inventories and accounts receivable. The term of each commercial loan varies by its purpose.

Commercial loans are underwritten after evaluating and understanding the borrower’s ability to operate profitably and prudently expand its business. Current and projected cash flows are evaluated to determine the ability of the borrower to repay their obligations as agreed. Commercial loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The cash flows of borrowers, however,

may

not

be as expected and the collateral securing these loans

may

fluctuate in value. Most commercial loans are secured by the assets being financed or other business assets such as accounts receivable or inventory and usually incorporate a personal guarantee; however, some short-term loans

may

be made on an unsecured basis. In the case of loans secured by accounts receivable, the availability of funds for the repayment of these loans

may

be substantially dependent on the ability of the borrower to collect amounts due from its customers. The commercial loan portfolio includes loans to a wide variety of corporations and businesses across many industrial classifications in the areas where the Bank operates.

Commercial Real Estate:

Commercial real estate loans include mortgage loans to farmers, owners of multi-family investment properties, developers and owners of commercial real estate. Commercial real estate lending typically involves higher loan principal amounts and the repayment of these loans is generally largely dependent on the successful operation of the property securing the loan or the business conducted on the property securing the loan. Commercial real estate loans

may

be more adversely affected by conditions in the real estate markets or in the general economy. The properties securing the Corporation’s commercial real estate portfolio are diverse in terms of type and geographic location. This diversity helps reduce the Corporation’s exposure to adverse economic events that affect any single market or industry. Management monitors and evaluates commercial real estate loans based on collateral, geography and risk grade criteria. In addition, management tracks the level of owner-occupied commercial real estate loans versus non-owner occupied loans.

1

-

4

Family Residential Real Estate

: Residential real estate loans

are secured by

one

to

four

family residential properties and include both owner occupied, non-owner occupied and home equity loans. Credit approval for residential real estate loans requires demonstration of sufficient income to repay the principal and interest and the real estate taxes and insurance, stability of employment, an established credit record and an appropriately appraised value of the real estate securing the loan that generally requires that the residential real estate loan amount be

no

more than

80%

of the purchase price or the appraised value of the real estate securing the loan unless the borrower provides private mortgage insurance. Underwriting standards for home equity loans are heavily influenced by statutory requirements, which include, but are

not

limited to, a maximum loan-to-value percentage of

80%,

collection remedies, the number of such loans a borrower can have at

one

time and documentation requirements.

Consumer

: The Corporation originates direct and indirect consumer loans, primarily automobile loans, personal lines of credit, and unsecured consumer loans in its primary market areas. Credit approval for consumer loans requires income sufficient to repay principal and interest due, stability of employment, an established credit record and sufficient collateral for secured loans. Consumer loans typically have shorter terms and lower balances with higher yields as compared to real estate mortgage loans, but generally carry higher risks of default. Consumer loan collections are dependent on the borrower’s continuing financial stability, and thus are more likely to be affected by adverse personal circumstances.

Finance, Loan and Lease Receivables, Held for Investments, Foreclosed Assets Policy [Policy Text Block]

Other Real Estate Owned:

Real estate properties acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less costs to sell at the date of acquisition, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss. These assets are subsequently accounted for at lower of cost or fair value less estimated costs to sell. If the fair value declines after acquisition, a valuation allowance is recorded as a charge to income. Operating costs after acquisition are expensed. Gains and losses on disposition are reported as a charge to income.

Transfers and Servicing of Financial Assets, Policy [Policy Text Block]

Transfers of Financial Assets:

Transfers of financial assets are accounted for as sales, when control over the assets has been relinquished. Control over transferred assets is deemed to be surrendered when the assets have been isolated from the Corporation, the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and the Corporation does

not

maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

Property, Plant and Equipment, Policy [Policy Text Block]

Premises and Equipment:

Land is carried at cost. Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed primarily using the straight-line method over the estimated useful life of the owned asset and, for leasehold improvements, generally over the lesser of the remaining term of the lease facility or the estimated economic life of the improvement. Useful lives range from

three

years for software to

thirty-nine

and

one

-half years for buildings.

Cash Surrender Value of Life Insurance [Policy Text Block]

Cash Surrender Value of Life Insurance:

The Bank has purchased single-premium life insurance policies to insure the lives of current and former participants in the salary continuation plan. As of

June

30,

2017,

the Bank had policies with total death benefits of

$19,728

and total cash surrender values of

$9,065.

As of

June

30,

2016,

the Bank had policies with total death benefits of

$14,106

and total cash surrender values of

$6,819.

Bank owned life insurance is recorded at the amount that can be realized under the insurance contract at the balance sheet date, which is the cash surrender value adjusted for other charges or other amounts due that are probable at settlement. Tax-exempt income is recognized from the periodic increases in cash surrender value of these policies.

Long-term Assets [Policy Text Block]

Long-term Assets:

Premises, equipment and other long-term assets are reviewed for impairment when events indicate their carrying amount

may

not

be recoverable from future undiscounted cash flows. If impaired, the assets are recorded at fair value.

Repurchase and Resale Agreements Policy [Policy Text Block]

Repurchase Agreements:

Substantially all repurchase agreement liabilities, which are classified as short-term borrowings, represent amounts advanced by various customers. Securities are pledged to cover these liabilities, which are

not

covered by federal deposit insurance.

Pension and Other Postretirement Plans, Policy [Policy Text Block]

Retirement Plans:

The Bank maintains a

401

(k) savings and retirement plan covering all eligible employees and matching contributions are expensed as made. Salary continuation plan expense allocates the benefits over years of service.

Income Tax, Policy [Policy Text Block]

Income Taxes:

The Corporation files a consolidated federal income tax return. Income tax expense is the sum of the current-year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax consequences of temporary differences between the carrying amounts and tax basis of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. The Corporation applies a more likely than

not

recognition threshold for all tax uncertainties in accordance with U.S. generally accepted accounting principles. A tax position is recognized as a benefit only if it is more likely than

not

the position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit greater than

50%

likely of being realized on examination. The Corporation recognizes interest and/or penalties related to income tax matters in income tax expense.

Earnings Per Share, Policy [Policy Text Block]

Earnings per Common Share:

Basic earnings per common share is net income divided by the weighted average number of common shares outstanding during the period. Diluted earnings per common share includes the dilutive effect of additional potential common shares issuable upon the vesting of restricted stock awards.

Share-based Compensation, Option and Incentive Plans Policy [Policy Text Block]

Stock-Based Compensation:

Compensation cost is recognized for restricted stock awards issued to employees over the required service period, generally defined as the vesting period. The fair value of restricted stock awards is estimated by using the market price of the Corporation’s common stock at the date of grant. For awards with graded vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award.

Comprehensive Income, Policy [Policy Text Block]

Comprehensive Income:

Comprehensive income consists of net income and other comprehensive income (loss). Other comprehensive income (loss) includes unrealized gains and losses on securities available-for-sale, which are also recognized as a separate component of equity, net of tax.

Malpractice Loss Contingency, Policy [Policy Text Block]

Loss Contingencies:

Loss contingencies, including claims and legal actions arising in the ordinary course of business, are recorded as liabilities when the likelihood of loss is probable and an amount or range of loss can be reasonably estimated. Management does

not

believe there are such matters that will have a material effect on the financial statements.

Fair Value of Financial Instruments, Policy [Policy Text Block]

Fair Value of Financial Instruments:

Fair value of financial instruments are estimated using relevant market information and other assumptions, as more fully disclosed in Note

12

of the Consolidated Financial Statements. Fair value estimates involve uncertainties and matters of significant judgment regarding interest rates, credit risk, discounted cash flows, prepayments, and other factors, especially in the absence of broad markets for particular items. Changes in assumptions or in market conditions could significantly affect the estimates.

Dividend Restrictions [Policy Text Block]

Dividend Restrictions:

Banking regulations require maintaining certain capital levels and

may

limit the dividends paid by the Bank to the holding company or by the holding company to shareholders.

Reclassification, Policy [Policy Text Block]

Reclassifications:

Certain reclassifications have been made to the

June

30,

2016

financial statements to be comparable to the

June

30,

2017

presentation. The reclassifications had

no

impact on prior year net income or shareholders’ equity.

New Accounting Pronouncements, Policy [Policy Text Block]

Recently Issued Accounting Pronouncements

Not

Yet Effective:

In

May 2014,

FASB issued Accounting Standards Update (ASU)

2014

-

09,

Revenue from Contracts with Customers (Topic

606

)

. The ASU creates a new topic, Topic

606,

to provide guidance on revenue recognition for entities that enter into contracts with customers to transfer goods or services or enter into contracts for the transfer of nonfinancial assets. The core principle of the guidance is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. Additional disclosures are required to provide quantitative and qualitative information regarding the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The new guidance is effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after

December 15, 2017.

The adoption of ASU

2014

-

09

as it relates to non-interest income, such as service charges and debit card interchange income, is

not

expected to have a material effect on the Corporation’s financial statements.

In

June 2016,

FASB Issued ASU

2016

-

13,

Financial Instruments—Credit Losses (Topic

326

): Measurement of Credit Losses on Financial Instruments.

This ASU adds a new Topic

326

to the Codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. GAAP, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all current loss recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the corporation expects to collect over the instrument’s contractual life. ASU

2016

-

13

also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU

2016

-

13

is effective for “public business entities,” as defined, that are SEC filers for fiscal years and for interim periods with those fiscal years beginning after

December 15, 2019.

Early adoption of the guidance is permitted for fiscal years beginning after

December 15, 2018,

including interim periods within those fiscal years. Management is currently evaluating the impact of the adoption of this guidance on the Corporation’s consolidated financial statements, and are in the midst of gathering critical data to evaluate the impact. However, it is too early to estimate the impact.

In

March 2017,

FASB issued ASU

2017

-

08,

Receivables-Nonrefundable Fees and Oher Costs

:

Premium Amortization on Purchased Callable Debt Securities

. The ASU amends the guidance related to amortization for certain callable debt securities held at a premium, requiring the premium to be amortized to the earliest call date. The adoption of ASU

2017

-

08

will

not

have a material impact on the Corporation’s financial statements.

Note 1 - Summary of Significant Accounting Policies (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Cash Flow, Supplemental Disclosures [Table Text Block]

	Year Ended June 30,
	2017		2016
Cash paid for interest	$	1,108	$	903
Cash paid for Federal income taxes		300		725
Non-cash transactions:
Transfer from loans to repossessed assets		113		38
Transfer from loans held for sale to portfolio		342		—
Expired and forfeited dividend reinvestment plan shares associated with restricted stock awards that were retired to treasury stock		4		6

Note 2 - Securities (Tables)

12 Months Ended

Jun. 30, 2017

Marketable Securities [Table Text Block]

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2017
Obligations of U.S. government-sponsored entities and agencies	$	12,571	$	90	$	(74	)	$	12,587
Obligations of state and political subdivisions		56,824		890		(254	)		57,460
U.S. Government-sponsored mortgage-backed securities - residential		64,092		184		(438	)		63,838
U.S. Government-sponsored mortgage-backed securities - commercial		1,459		—		(1	)		1,458
U.S. Government-sponsored collateralized mortgage obligations - residential		6,310		1		(100	)		6,211
Pooled trust preferred security		155		377		—			532
Total available-for-sale securities	$	141,411	$	1,542	$	(867	)	$	142,086

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
June 30, 2017
Obligations of state and political subdivisions	$	4,259	$	73	$	(3	)	$	4,329
Total held-to-maturity securities	$	4,259	$	73	$	(3	)	$	4,329

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2016
Obligations of U.S. government-sponsored entities and agencies	$	9,682	$	362	$	—		$	10,044
Obligations of state and political subdivisions		53,952		2,010		(8	)		55,954
U.S. Government-sponsored mortgage-backed securities - residential		58,702		920		(26	)		59,596
U.S. Government-sponsored mortgage-backed securities - commercial		1,485		41		—			1,526
U.S. Government-sponsored collateralized mortgage obligations - residential		5,774		49		(3	)		5,820
Pooled trust preferred security		153		276		—			429
Total available-for-sale securities	$	129,748	$	3,658	$	(37	)	$	133,369

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2016
Obligations of state and political subdivisions	$	3,494	$	125	$	—	$	3,619
Total held-to-maturity securities	$	3,494	$	125	$	—	$	3,619

Schedule of Realized Gain (Loss) [Table Text Block]

	2017		2016
Proceeds from sales and calls	$	14,255	$	10,596
Gross realized gains		213		202
Gross realized losses		4		—

Investments Classified by Contractual Maturity Date [Table Text Block]

Available-for-sale	Amortized Cost		Fair Value
Due in one year or less	$	1,552	$	1,555
Due after one year through five years		17,428		17,727
Due after five years through ten years		28,024		28,367
Due after ten years		22,391		22,398
Total		69,395		70,047
U.S. Government-sponsored mortgage-backed and related securities		71,861		71,507
Pooled trust preferred security		155		532
Total	$	141,411	$	142,086

Held-to-maturity	Amortized Cost		Fair Value
Due after five years through ten years	$	601	$	620
Due after ten years		3,658		3,709
Total	$	4,259	$	4,329

Schedule of Unrealized Loss on Investments [Table Text Block]

	Less than 12 Months					12 Months or more					Total
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
June 30, 2017
Obligations of US government-sponsored entities and agencies	$	4,336	$	(74	)	$	—	$	—		$	4,336	$	(74	)
Obligations of states and political subdivisions		13,881		(241	)		834		(13	)		14,715		(254	)
Mortgage-backed securities - residential		42,071		(391	)		2,805		(47	)		44,876		(438	)
Mortgage-backed securities - commercial		1,458		(1	)		—		—			1,458		(1	)
Collateralized mortgage obligations - residential		5,417		(88	)		654		(12	)		6,071		(100	)
Total available-for-sale	$	67,163	$	(795	)	$	4,293	$	(72	)	$	71,456	$	(867	)

	Less than 12 Months					12 Months or more				Total
Held-to-Maturity	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
June 30, 2017
Obligations of states and political subdivisions	$	933	$	(3	)	$	—	$	—	$	933	$	(3	)

	Less than 12 Months					12 Months or more					Total
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss

June 30, 2016
Obligations of states and political subdivisions	$	572	$	(6	)	$	641	$	(2	)	$	1,213	$	(8	)
Mortgage-backed securities - residential		4,899		(12	)		4,836		(14	)		9,735		(26	)
Collateralized mortgage obligations - residential		—		—			1,212		(3	)		1,212		(3	)
Total available-for-sale	$	5,471	$	(18	)	$	6,689	$	(19	)	$	12,160	$	(37	)

Note 3 - Loans (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

	2017			2016
Commercial	$	46,380		$	43,207
Commercial real estate:
Construction		5,604			7,783
Other		158,225			153,097
1 – 4 Family residential real estate:
Owner occupied		41,411			31,012
Non-owner occupied		14,415			14,471
Construction		1,988			1,256
Consumer		5,138			5,812
Subtotal		273,161			256,638
Less: Deferred loan fees and costs		(294	)		(360	)
Allowance for loan losses		(3,086	)		(3,566	)
Net loans	$	269,781		$	252,712

Allowance for Credit Losses on Financing Receivables [Table Text Block]

							1-4 Family
				Commercial			Residential
				Real			Real
	Commercial			Estate			Estate			Consumer			Total

Allowance for loan losses:
Beginning balance	$	505		$	2,518		$	402		$	141		$	3,566
Provision for loan losses		18			581			77			(80	)		596
Loans charged-off		(6	)		(1,061	)		(44	)		(37	)		(1,148	)
Recoveries		1			—			38			33			72
Total ending allowance balance	$	518		$	2,038		$	473		$	57		$	3,086

						1-4 Family
			Commercial			Residential
			Real			Real
	Commercial		Estate			Estate			Consumer			Total

Allowance for loan losses:
Beginning balance	$	316	$	1,660		$	289		$	167		$	2,432
Provision for loan losses		189		862			414			33			1,498
Loans charged-off		—		(4	)		(311	)		(80	)		(395	)
Recoveries		—		—			10			21			31
Total ending allowance balance	$	505	$	2,518		$	402		$	141		$	3,566

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	42	$	2	$	—	$	44
Collectively evaluated for impairment		518		1,996		471		57		3,042

Total ending allowance balance	$	518	$	2,038	$	473	$	57	$	3,086

Recorded investment in loans:
Loans individually evaluated for impairment	$	444	$	1,587	$	203	$	—	$	2,234
Loans collectively evaluated for impairment		45,993		162,176		57,901		5,144		271,214

Total ending loans balance	$	46,437	$	163,763	$	58,104	$	5,144	$	273,448

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer		Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	—	$	868	$	6	$	—	$	874
Collectively evaluated for impairment		505		1,650		396		141		2,692

Total ending allowance balance	$	505	$	2,518	$	402	$	141	$	3,566

Recorded investment in loans:
Loans individually evaluated for impairment	$	1,029	$	5,105	$	758	$	—	$	6,892
Loans collectively evaluated for impairment		42,219		155,734		46,166		5,816		249,935

Total ending loans balance	$	43,248	$	160,839	$	46,924	$	5,816	$	256,827

Impaired Financing Receivables [Table Text Block]

	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Commercial	$	482	$	444	$	—	$	207	$	80	$	80
Commercial real estate:
Construction		—		—		—		87		6		6
Other		1,928		1,039		—		951		105		105
1-4 Family residential real estate:
Owner occupied		104		103		—		119		—		—
Non-owner occupied		—		—		—		183		—		—
With an allowance recorded:
Commercial real estate:
Other		548		548		42		1,884		21		21
1-4 Family residential real estate:
Owner occupied		99		100		2		120		6		6
Total	$	3,161	$	2,234	$	44	$	3,551	$	218	$	218

	Unpaid				Allowance for		Average		Interest		Cash Basis
	Principal		Recorded		Loan Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized

With no related allowance recorded:
Commercial	$	1,033	$	1,029	$	—	$	95	$	—	$	—
Commercial real estate:
Construction		386		384		—		52		—		—
Other		2,121		2,106		—		2,344		—		—
1-4 Family residential real estate:
Owner occupied		175		174		—		357		2		2
Non-owner occupied		722		407		—		435		—		—
With an allowance recorded:
Commercial real estate:
Other		2,802		2,615		868		1,103		8		8
1-4 Family residential real estate:
Owner occupied		177		177		6		149		—		—
Non-owner occupied		—		—		—		115		—		—
Total	$	7,416	$	6,892	$	874	$	4,650	$	10	$	10

Past Due Financing Receivables [Table Text Block]

	June 30, 2017				June 30, 2016
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial	$	368	$	—	$	1,009	$	—
Commercial real estate:
Construction		—		—		384		—
Other		729		—		4,000		—
1 – 4 Family residential:
Owner occupied		90		—		234		—
Non-owner occupied		—		—		407		—
Consumer		—		—		—		—
Total	$	1,187	$	—	$	6,034	$	—

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	—	$	—	$	35	$	35	$	46,402	$	46,437
Commercial real estate:
Construction		—		—		—		—		5,596		5,596
Other		—		—		130		130		158,037		158,167
1-4 Family residential:
Owner occupied		13		—		74		87		41,605		41,692
Non-owner occupied		—		—		—		—		14,416		14,416
Construction		—		—		—		—		1,996		1,996
Consumer		22		—		—		22		5,122		5,144
Total	$	35	$	—	$	239	$	274	$	273,174	$	273,448

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	123	$	—	$	—	$	123	$	43,125	$	43,248
Commercial real estate:
Construction		—		—		—		—		7,764		7,764
Other		59		—		2,110		2,169		150,906		153,075
1-4 Family residential:
Owner occupied		15		—		218		233		30,947		31,180
Non-owner occupied		—		—		196		196		14,278		14,474
Construction		—		—		—		—		1,270		1,270
Consumer		7		—		—		7		5,809		5,816
Total	$	204	$	—	$	2,524	$	2,728	$	254,099	$	256,827

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Loans		Investment		Investment
Commercial		2	$	518	$	518
Commercial real estate:
Other		1		512		512
Total		3	$	1,030	$	1,030

			Pre-Modification		Post-Modification
	Number of		Outstanding Recorded		Outstanding Recorded
	Loans		Investment		Investment
Commercial		3	$	1,058	$	1,029
Commercial real estate:
Other		3		1,294		1,487
Total		6	$	2,352	$	2,516

Financing Receivable Credit Quality Indicators [Table Text Block]

			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	44,435	$	907	$	642	$	—	$	453
Commercial real estate:
Construction		4,514		1,035		—		4		43
Other		150,460		5,110		1,566		470		561
1-4 Family residential real estate:
Owner occupied		2,668		—		11		30		38,983
Non-owner occupied		13,633		210		261		187		125
Construction		1,223		—		—		—		773
Consumer		145		—		—		—		4,999
Total	$	217,078	$	7,262	$	2,480	$	691	$	45,937

			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	35,243	$	6,190	$	1,162	$	—	$	653
Commercial real estate:
Construction		7,305		—		384		—		75
Other		144,101		2,482		4,026		2,150		316
1-4 Family residential real estate:
Owner occupied		3,506		72		349		47		27,206
Non-owner occupied		12,999		406		486		196		387
Construction		235		—		—		—		1,035
Consumer		210		—		6		—		5,600
Total	$	203,599	$	9,150	$	6,413	$	2,393	$	35,272

Loans and Leases Receivable, Related Parties Disclosure [Table Text Block]

Principal balance, July 1	$	4,724
New loans		1,620
Effect of changes in composition of related parties		3,565
Repayments		(422	)
Principal balance, June 30	$	9,487

Note 4 - Premised and Equipment (Tables)

12 Months Ended

Jun. 30, 2017

Property, Plant and Equipment [Table Text Block]

	2017			2016
Land	$	1,469		$	1,469
Land improvements		340			317
Building and leasehold improvements		12,180			11,978
Furniture, fixture and equipment		5,023			4,694
Total premises and equipment		19,012			18,458
Accumulated depreciation and amortization		(5,614	)		(4,873	)
Premises and equipment, net	$	13,398		$	13,585

Lessee, Operating Lease, Disclosure [Table Text Block]

Twelve Months Ending June 30
2018	$	97
2019		50
2020		50
2021		25
Total	$	222

Note 5 - Deposits (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Time Deposit Maturities [Table Text Block]

Twelve Months Ending June 30
2018	$	34,935
2019		17,962
2020		5,948
2021		3,789
2022		3,172
Thereafter		705
	$	66,511

Note 6 - Short-term Borrowings (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Short-term Debt [Table Text Block]

	2017			2016
Balance at June 30	$	23,986		$	19,129
Average balance during the year		21,053			21,196
Maximum month-end balance		28,073			25,759
Average interest rate during the year		0.43	%		0.18	%
Weighted average rate, June 30		0.82	%		0.20	%

Schedule of Repurchase Agreements [Table Text Block]

	Overnight and Continuous
	2017		2016
U.S. government-sponsored entities and agencies pledged	$	2,015	$	2,066
Residential mortgage-backed securities pledged		20,923		16,864
Collateralized mortgage obligations pledged		2,355		1,510
Total pledged	$	25,293	$	20,440
Repurchase agreements	$	23,986	$	19,129

Note 7 - Federal Home Loan Bank Advances (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Federal Home Loan Bank, Advances, by Branch of FHLB Bank [Table Text Block]

						June 30, 2017					June 30, 2016
	Stated Interest Rate Range							Weighted Average					Weighted Average
Advance Type	From			To		Amount		Rate			Amount		Rate
Fixed-rate, amortizing		4.30	%	4.30	%	$	120		4.30	%	$	181		4.30	%
Fixed-rate		0.43		3.24			12,200		1.47			17,100		1.45

Schedule of Principal Payments [Table Text Block]

Twelve Months Ending June 30	Principal Payments
2018	$	570
2019		2,050
2020		1,500
2021		1,500
2022		1,700
Thereafter		5,000
Total	$	12,320

Note 8 - Employee Benefit Plans (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Share-based Compensation, Restricted Stock Units Award Activity [Table Text Block]

	Restricted Stock Awards			Weighted-Average Grant Date Fair Value Per Share
Outstanding at June 30, 2016		3,564		$	15.33
Expired		(2,135	)		15.05
Non-vested at June 30, 2017		1,429			15.75

Note 9 - Income Taxes (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Components of Income Tax Expense (Benefit) [Table Text Block]

	2017		2016
Current income taxes	$	513	$	421
Deferred income tax expense (benefit)		128		(142	)
	$	641	$	279

Schedule of Deferred Tax Assets and Liabilities [Table Text Block]

	2017			2016
Deferred tax assets:
Allowance for loan losses	$	919		$	1,082
Deferred compensation		771			721
Recognized loss on impairment of security		265			265
AMT credit carryforward		220			143
Deferred income		119			140
Other real estate owned deferred gain		12			13
Other real estate owned write down		10			—
Non-accrual loan interest income		58			72
Gross deferred tax asset		2,374			2,436

Deferred tax liabilities:
Depreciation		(788	)		(761	)
Loan fees		(320	)		(279	)
Prepaid expenses		(89	)		(91	)
FHLB stock dividends		(166	)		(166	)
Net unrealized securities gain		(229	)		(1,231	)
Gross deferred tax liabilities		(1,592	)		(2,528	)
Net deferred asset (liability)	$	782		$	(92	)

Schedule of Effective Income Tax Rate Reconciliation [Table Text Block]

	2017			2016
Income taxes computed at the statutory rate on pretax income	$	1,236		$	825
Tax exempt income		(498	)		(491	)
Cash surrender value income		(83	)		(65	)
Tax credit		(25	)		—
Other		11			10
	$	641		$	279

Note 10 - Regulatory Matters (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Compliance with Regulatory Capital Requirements under Banking Regulations [Table Text Block]

	Actual					Minimum Capital Required For Capital Adequacy Purposes					Minimum Required To Be Considered Well Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
June 30, 2017
Common equity Tier 1 to risk-weighted assets Bank	$	41.4		13.21	%	$	18.0		4.50	%	$	20.4		6.50	%
Tier 1 capital to risk weighted assets Bank		41.4		13.21			22.7		6.00			25.1		8.00
Total Capital to risk weighted assets Bank		44.5		14.20			29.0		8.00			31.4		10.00
Tier 1 capital to average assets Bank		41.4		9.06			18.3		4.00			22.9		5.00

	Actual					Minimum Capital Required - Basel III					Minimum Required To Be Considered Well Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
June 30, 2016
Common equity Tier 1 to risk-weighted assets Bank	$	39.4		13.37	%	$	15.1		4.50	%	$	19.1		6.50	%
Tier 1 capital to risk weighted assets Bank		39.4		13.37			19.5		6.00			23.6		8.00
Total Capital to risk weighted assets Bank		42.9		14.58			25.4		8.00			29.4		10.00
Tier 1 capital to average assets Bank		39.4		9.25			17.0		4.00			21.3		5.00

Note 12 - Fair Value (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block]

			Fair Value Measurements at June 30, 2017 Using
	Balance at June 30, 2017		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of government-sponsored entities	$	12,587	$	—	$	12,587	$	—
Obligations of states and political subdivisions		57,460		—		57,460		—
Mortgage-backed securities - residential		63,838		—		63,838		—
Mortgage-backed securities - commercial		1,458		—		1,458		—
Collateralized mortgage obligations		6,211		—		6,211		—
Pooled trust preferred security		532		—		532		—

			Fair Value Measurements at June 30, 2016 Using
	Balance at June 30, 2016		Level 1		Level 2		Level 3
Securities available-for-sale:
Obligations of government-sponsored entities	$	10,044	$	—	$	10,044	$	—
Obligations of states and political subdivisions		55,954		—		55,954		—
Mortgage-backed securities - residential		59,596		—		59,596		—
Mortgage-backed securities - commercial		1,526		—		1,526		—
Collateralized mortgage obligations		5,820		—		5,820		—
Pooled trust preferred security		429		—		429		—

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques [Table Text Block]

			Fair Value Measurements at June 30, 2017 Using
	Balance at June 30, 2017		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	130	$	—	$	—	$	130
Other Real Estate Owned:
1-4 Family residential real estate		71	$	—	$	—		71

			Fair Value Measurements at June 30, 2016 Using
	Balance at June 30, 2016		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	1,206	$	—	$	—	$	1,206
1-4 Family residential real estate – Non-owner occupied		197		—		—		197

Fair Value Measurements, Recurring and Nonrecurring, Valuation Techniques [Table Text Block]

	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	130	Bid Indication		N/A		0.0	%		0.0	%
Other Real Estate Owned:
1-4 Family residential real estate	$	71	Bid Indication		N/A		0.0	%		0.0	%

	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	459	Settlement Contract		N/A		0.0	%		0.0	%
Commercial Real Estate – Other	$	127	Bid Indications		N/A		0.0	%		0.0	%
Commercial Real Estate – Other	$	620	Bid Indications		N/A		0.0	%		0.0	%
1-4 Family residential real estate – Non-owner occupied	$	197	Bid Indications		N/A		0.0	%		0.0	%

Fair Value, by Balance Sheet Grouping [Table Text Block]

	2017				2016
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	9,912	$	9,912	$	10,181	$	10,181
Level 2 inputs:
Certificates of deposits in other financial institutions		3,921		3,927		5,906		5,906
Loans held for sale		1,252		1,286		1,048		1,067
Accrued interest receivable		1,212		1,212		1,077		1,077
Level 3 inputs:
Securities held-to-maturity		4,259		4,329		3,494		3,619
Loans, net		269,781		266,041		252,712		253,155
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		307,960		307,960		281,640		281,640
Time deposits		66,511		66,535		65,008		65,111
Short-term borrowings		23,986		23,986		19,129		19,129
Federal Home Loan Bank advances		12,320		12,054		17,281		17,486
Accrued interest payable		40		40		40		40

Note 13 - Parent Company Financial Statements (Tables)

12 Months Ended

Jun. 30, 2017

Condensed Balance Sheet [Table Text Block]

	June 30, 2017		June 30, 2016
Condensed Balance Sheets
Assets
Cash	$	36	$	46
Securities, available-for-sale		1,651		2,050
Other assets		61		50
Investment in subsidiary		41,843		41,708
Total assets	$	43,591	$	43,854
Liabilities
Other liabilities	$	56	$	61
Shareholders’ equity		43,535		43,793
Total liabilities & shareholders’ equity	$	43,591	$	43,854

Condensed Income Statement [Table Text Block]

	Year Ended June 30, 2017			Year Ended June 30, 2016
Condensed Statements of Income and Comprehensive Income
Cash dividends from Bank subsidiary	$	1,065		$	1,425
Other income		51			46
Other expense		213			206
Income before income taxes and equity in undistributed net income of subsidiary		903			1,265
Income tax benefit		(53	)		(50	)
Income before equity in undistributed net income of Bank subsidiary		956			1,315
Equity in undistributed net income of subsidiary		2,038			832
Net income	$	2,994		$	2,147
Comprehensive income	$	1,050		$	3,637

Condensed Cash Flow Statement [Table Text Block]

Condensed Statements of Cash Flows	Year Ended June 30, 2017			Year Ended June 30, 2016
Cash flows from operating activities
Net income	$	2,994		$	2,147
Equity in undistributed net income of Bank subsidiary		(2,038	)		(832	)
Securities amortization and accretion, net		(10	)		(11	)
Gain on sale of securities		(11	)		—
Change in other assets and liabilities		6			(2	)
Net cash flows from operating activities		941			1,302
Cash flows from investing activities
Proceeds from the sale of available-for-sale securities		357			—
Net cash flows from investing activities		357			—
Cash flows from financing activities
Dividend paid		(1,308	)		(1,310	)
Net cash flows from financing activities		(1,308	)		(1,310	)
Change in cash and cash equivalents		(10	)		(8	)
Beginning cash and cash equivalents		46			54
Ending cash and cash equivalents	$	36		$	46

Note 14 - Earnings Per Share (Tables)

12 Months Ended

Jun. 30, 2017

Schedule of Earnings Per Share, Basic and Diluted [Table Text Block]

	For the year Ended June 30,
	201 7		2016
Basic:
Net income available to common shareholders	$	2,994	$	2,147
Weighted average common shares outstanding		2,724,293		2,725,276
Basic income per share	$	1.10	$	0.79

Diluted:
Net income available to common shareholders	$	2,994	$	2,147
Weighted average common shares outstanding		2,724,293		2,725,276
Dilutive effect of restricted stock		32		103
Total common shares and dilutive potential common shares		2,724,325		2,725,379
Dilutive income per share	$	1.10	$	0.79

Note 15 - Accumulated Other Comprehensive Income (Loss) (Tables)

12 Months Ended

Jun. 30, 2017