SHORT-TERM BORROWINGS

12 Months Ended

Jun. 30, 2014

NOTE 6—SHORT-TERM BORROWINGS

Short-term borrowings consisted of repurchase agreements and Federal fund purchased. Repurchase agreements are financing arrangements. Physical control is maintained for all securities pledged to secure repurchase agreements. Information concerning all short-term borrowings at June 30, maturing in less than one year is summarized as follows:

	2014			2013
Balance at June 30	$	19,489		$	12,490
Average balance during the year		15,888			13,457
Maximum month-end balance		20,299			15,005
Average interest rate during the year		0.16	%		0.16	%
Weighted average rate, June 30		0.16	%		0.17	%

Repurchase agreements mature daily. The Bank has pledged obligations of government-sponsored entities and mortgage-backed securities with a carrying value of $20,708 and $14,948 at June 30, 2014 and 2013, respectively, as collateral for the repurchase agreements. Total interest expense on short-term borrowings was $26 and $22 for the years ended June 30, 2014 and 2013, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

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