Note 12 - Commitments With Off-balance Sheet Risk

12 Months Ended

Jun. 30, 2018

Notes to Financial Statements

Commitments with Off-Balance Sheet Risk Disclosure [Text Block]

 

NOTE

1

2

—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 that 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

$62,764

and

$53,029

as of

June 30, 2018

and

2017,

respectively. Of the

June 

30,

2018

commitments,

$53,082

carried variable rates and

$9,682

carried fixed rates of interest ranging from

3.375%

to

6.50%

with maturity dates from

August 2018

to

June 2048.

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%.

Financial standby letters of credit were

$1,090

as of

June 30, 2018

and

$713

as of

June 30, 2017.

In addition, commitments to extend credit of

$8,493

and

$8,121

as of

June 30, 2018

and

2017,

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.