10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q

[X] Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the quarterly period ended September 30, 2018

Commission File No. 033-79130

CONSUMERS BANCORP, INC.

(Exact name of registrant as specified in its charter)

OHIO	34-1771400
(State or other jurisdiction	(I.R.S. Employer Identification No.)
of incorporation or organization)

614 East Lincoln Way, P.O. Box 256, Minerva, Ohio	44657
(Address of principal executive offices)	(Zip Code)

(330) 868-7701

(Registrant’s telephone number)

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes ☒     No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐  (Do not check if smaller reporting company)	Smaller reporting company ☒
Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Securities Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 2,733,845 shares of Registrant’s common stock, no par value, outstanding as of November 12, 2018.

CONSUMERS BANCORP, INC.

FORM 10-Q

QUARTER ENDED September 30, 2018

Table of Contents

Page

Number (s)

Part I – Financial Information
Item 1 – Financial Statements (Unaudited)
Consolidated Balance Sheets at September 30, 2018 and June 30, 2018	1
Consolidated Statements of Income for the three months ended September 30, 2018 and 2017	2
Consolidated Statements of Comprehensive Income for the three months ended September 30, 2018 and 2017	3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended September 30, 2018 and 2017	4
Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2018 and 2017	5
Notes to the Consolidated Financial Statements	6-20
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations	21-27
Item 3 – Not Applicable for Smaller Reporting Companies
Item 4 – Controls and Procedures	28
Part II – Other Information
Item 1 – Legal Proceedings	29
Item 1A – Not Applicable for Smaller Reporting Companies	29
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 3 – Defaults Upon Senior Securities	29
Item 4 – Mine Safety Disclosure	29
Item 5 – Other Information	29
Item 6 – Exhibits	29
Signatures	30

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

CONSUMERS BANCORP, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

(Dollars in thousands, except per share data)	September 30, 2018			June 30, 2018
ASSETS
Cash on hand and noninterest-bearing deposits in financial institutions	$	8,579		$	7,615
Federal funds sold and interest-bearing deposits in financial institutions		2,206			157
Total cash and cash equivalents		10,785			7,772
Certificates of deposit in other financial institutions		2,973			2,973
Securities, available-for-sale		137,668			144,028
Securities, held-to-maturity (fair value of $3,965 at September 30, 2018 and $4,048 at June 30, 2018)		3,929			4,024
Federal bank and other restricted stocks, at cost		1,459			1,459
Loans held for sale		2,663			1,448
Total loans		328,682			318,509
Less allowance for loan losses		(3,538	)		(3,422	)
Net loans		325,144			315,087
Cash surrender value of life insurance		9,404			9,335
Premises and equipment, net		13,474			13,315
Accrued interest receivable and other assets		3,290			3,178
Total assets	$	510,789		$	502,619
LIABILITIES
Deposits
Noninterest-bearing demand	$	113,123		$	107,919
Interest bearing demand		85,618			81,299
Savings		162,749			162,204
Time		79,049			78,541
Total deposits		440,539			429,963
Short-term borrowings		2,902			13,367
Federal Home Loan Bank advances		19,739			11,756
Accrued interest and other liabilities		3,639			3,772
Total liabilities		466,819			458,858
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY
Preferred stock (no par value, 350,000 shares authorized, none outstanding)		—			—
Common stock (no par value, 3,500,000 shares authorized; 2,854,133 shares issued as of September 30, 2018 and June 30, 2018)		14,628			14,630
Retained earnings		33,660			32,342
Treasury stock, at cost (120,288 and 124,489 common shares as of September 30, 2018 and June 30, 2018, respectively)		(1,515	)		(1,576	)
Accumulated other comprehensive loss		(2,803	)		(1,635	)
Total shareholders’ equity		43,970			43,761
Total liabilities and shareholders’ equity	$	510,789		$	502,619

See accompanying notes to consolidated financial statements

1

CONSUMERS BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

	Three Months ended September 30,
(Dollars in thousands, except per share amounts)	2018		2017
Interest and dividend income
Loans, including fees	$	3,949	$	3,228
Securities, taxable		526		490
Securities, tax-exempt		375		367
Federal bank and other restricted stocks		22		21
Federal funds sold and other interest bearing deposits		23		37
Total interest and dividend income		4,895		4,143
Interest expense
Deposits		514		248
Short-term borrowings		14		55
Federal Home Loan Bank advances		68		54
Total interest expense		596		357
Net interest income		4,299		3,786
Provision for loan losses		115		90
Net interest income after provision for loan losses		4,184		3,696
Noninterest income
Service charges on deposit accounts		316		308
Debit card interchange income		358		323
Bank owned life insurance income		69		68
Securities gains, net		587		38
Other		165		135
Total noninterest income		1,495		872
Noninterest expenses
Salaries and employee benefits		1,975		1,810
Occupancy and equipment		488		455
Data processing expenses		150		148
Debit card processing expenses		194		180
Professional and director fees		170		117
FDIC assessments		38		46
Franchise taxes		89		84
Marketing and advertising		104		78
Telephone and network communications		72		82
Other		404		393
Total noninterest expenses		3,684		3,393
Income before income taxes		1,995		1,175
Income tax expense		322		246
Net income	$	1,673	$	929
Basic and diluted earnings per share	$	0.61	$	0.34

See accompanying notes to consolidated financial statements

2

CONSUMERS BANCORP, INC.

Consolidated statements of comprehensive income

(Unaudited)

(Dollars in thousands)
	Three Months ended September 30,
	2018			2017
Net income	$	1,673		$	929
Other comprehensive income (loss), net of tax:
Net change in unrealized gains (losses) on securities available-for-sale:
Unrealized gains (losses) arising during the period		(893	)		104
Reclassification adjustment for gains included in income		(587	)		(38	)
Net unrealized gains (losses)		(1,480	)		66
Income tax effect		312			(22	)
Other comprehensive income (loss)		(1,168	)		44
Total comprehensive income	$	505		$	973

See accompanying notes to consolidated financial statements.

3

CONSUMERS BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY

(Unaudited)

(Dollars in thousands, except per share data)
	Three Months ended September 30,
	2018			2017
Balance at beginning of period	$	43,761		$	43,535
Net income		1,673			929
Other comprehensive income (loss)		(1,168	)		44
4,201 and 6,321 shares issued associated with stock awards during the three months ended September 30, 2018 and 2017, respectively		59			90
204 Dividend reinvestment plan shares associated with forfeited and expired restricted stock awards retired to treasury stock during the three months ended September 30, 2017		—			—
Common cash dividends		(355	)		(327	)
Balance at the end of the period	$	43,970		$	44,271
Common cash dividends per share	$	0.13		$	0.12

See accompanying notes to consolidated financial statements.

4

CONSUMERS BANCORP, INC.

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(Dollars in thousands)	Three Months Ended September 30,
	2018			2017
Cash flows from operating activities
Net cash from operating activities	$	533		$	503
Cash flow from investing activities
Securities available-for-sale
Purchases		(2,060	)		(426	)
Maturities, calls and principal pay downs		4,730			4,412
Proceeds from sales		2,573			1,586
Securities held-to-maturity
Principal pay downs		95			95
Net increase in loans		(10,247	)		(14,833	)
Acquisition of premises and equipment		(350	)		(86	)
Sale of other real estate owned		—			71
Net cash from investing activities		(5,259	)		(9,181	)
Cash flow from financing activities
Net increase in deposit accounts		10,576			9,369
Net change in short-term borrowings		(10,465	)		3,919
Proceeds from Federal Home Loan Bank advances		8,000			—
Repayments of Federal Home Loan Bank advances		(17	)		(16	)
Dividends paid		(355	)		(327	)
Net cash from financing activities		7,739			12,945
Increase in cash or cash equivalents		3,013			4,267
Cash and cash equivalents, beginning of period		7,772			9,912
Cash and cash equivalents, end of period	$	10,785		$	14,179
Supplemental disclosure of cash flow information:
Cash paid during the period:
Interest	$	576		$	347
Federal income taxes		—			—
Non-cash items:
Transfer from loans held for sale to portfolio		75			—
Issuance of treasury stock for stock awards		59			—
Expired and forfeited dividend reinvestment plan shares associated with restricted stock awards that were retired to treasury stock		—			4

See accompanying notes to consolidated financial statements.

5

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited)

(Dollars in thousands, except per share amounts)

Note 1 – Summary of Significant Accounting Policies:

Nature of Operations: Consumers Bancorp, Inc. (the Corporation) is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, Consumers National Bank (the Bank), 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.

Basis of Presentation: The consolidated financial statements for interim periods are unaudited and reflect all adjustments (consisting of only normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the financial position and results of operations and cash flows for the periods presented. The unaudited financial statements are presented in accordance with the requirements of Form 10-Q and do not include all disclosures normally required by accounting principles generally accepted in the United States of America. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Form 10-K for the year ended June 30, 2018. The results of operations for the interim period disclosed herein are not necessarily indicative of the results that may be expected for a full year.

The consolidated financial statements include the accounts of the Corporation and the Bank. All significant inter-company transactions and accounts have been eliminated in consolidation.

Segment Information: The Corporation is a bank holding company engaged in the business of commercial and retail banking, which accounts for substantially all the revenues, operating income, and assets. Accordingly, all its operations are recorded in one segment, banking.

Reclassifications: Certain items in prior financial statements have been reclassified to conform to the current presentation. Any reclassifications had no impact on prior year net income or shareholders’ equity.

Recently Issued Accounting Pronouncements Not Yet Effective: 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. generally accepted accounting principles, 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 in this guidance, that are SEC filers for fiscal years and for interim periods within 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 February 2016, FASB issued ASU 2016-02, Leases (Topic 842). This ASU will require all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures will be required so that users can understand more about the nature of an entity’s leasing activities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after December 15, 2018. Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on the Corporation’s consolidated financial statements and expects to recognize an increase in other assets and other liabilities for the rights and obligations created by leasing of branch offices. Management also expects minimal impact in the income statement with respect to occupancy expense related to leases.

6

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Note 2 – Securities

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2018
Obligations of U.S. government-sponsored entities and agencies	$	16,320	$	—	$	(481	)	$	15,839
Obligations of state and political subdivisions		55,795		237		(974	)		55,058
U.S. Government-sponsored mortgage-backed securities–residential		62,011		—		(2,084	)		59,927
U.S. Government-sponsored mortgage-backed securities– commercial		1,425		—		(17	)		1,408
U.S. Government-sponsored collateralized mortgage obligations– residential		5,666		—		(230	)		5,436
Total available-for-sale securities	$	141,217	$	237	$	(3,786	)	$	137,668

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
September 30, 2018
Obligations of state and political subdivisions	$	3,929	$	45	$	(9	)	$	3,965
Total held-to-maturity securities	$	3,929	$	45	$	(9	)	$	3,965

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2018
Obligations of U.S. government-sponsored entities and agencies	$	16,488	$	6	$	(372	)	$	16,122
Obligations of state and political subdivisions		56,964		339		(713	)		56,590
U.S. Government-sponsored mortgage-backed securities – residential		65,062		6		(1,660	)		63,408
U.S. Government-sponsored mortgage-backed securities – commercial		1,432		—		(17	)		1,415
U.S. Government-sponsored collateralized mortgage obligations - residential		5,973		9		(216	)		5,766
Pooled trust preferred security		178		549		—			727
Total available-for-sale securities	$	146,097	$	909	$	(2,978	)	$	144,028

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2018
Obligations of state and political subdivisions	$	4,024	$	24	$	—	$	4,048
Total held-to-maturity securities	$	4,024	$	24	$	—	$	4,048

7

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Proceeds from the sale of available-for-sale securities were as follows:

	Three Months Ended September 30,
	2018		2017
Proceeds from sales	$	2,573	$	1,586
Gross realized gains		593		39
Gross realized losses		6		1

The income tax provision related to the net realized gains amounted to $124 for the three months ended September 30, 2018. The income tax provision related to the net realized gains amounted to $13 for the three months ended September 30, 2017.

The amortized cost and fair values of debt securities at September 30, 2018, 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 are shown separately.

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,824	$	1,827
Due after one year through five years		19,435		19,201
Due after five years through ten years		27,499		27,112
Due after ten years		23,357		22,757
Total		72,115		70,897
U.S. Government-sponsored mortgage-backed and related securities		69,102		66,771
Total available-for-sale securities	$	141,217	$	137,668
Held-to-Maturity
Due after five years through ten years		527		521
Due after ten years		3,402		3,444
Total held-to-maturity securities	$	3,929	$	3,965

The following table summarizes the securities with unrealized losses at September 30, 2018 and June 30, 2018, aggregated by investment category and length of time that 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
September 30, 2018
Obligations of US government-sponsored entities and agencies	$	12,248	$	(282	)	$	3,591	$	(199	)	$	15,839	$	(481	)
Obligations of states and political subdivisions		29,778		(467	)		9,744		(507	)		39,522		(974	)
Mortgage-backed securities – residential		23,084		(434	)		36,843		(1,650	)		59,927		(2,084	)
Mortgage-backed securities – commercial		—		—			1,408		(17	)		1,408		(17	)
Collateralized mortgage obligations – residential		900		(1	)		4,536		(229	)		5,436		(230	)
Total temporarily impaired	$	66,010	$	(1,184	)	$	56,122	$	(2,602	)	$	122,132	$	(3,786	)

8

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

	Less than 12 Months					12 Months or more				Total
Held-to-maturity	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
September 30, 2018
Obligations of states and political subdivisions	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)
Total temporarily impaired	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)

	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, 2018
Obligations of US government-sponsored entities and agencies	$	12,400	$	(224	)	$	2,747	$	(148	)	$	15,147	$	(372	)
Obligations of states and political subdivisions		26,775		(369	)		7,975		(344	)		34,750		(713	)
Mortgage-backed securities – residential		31,038		(581	)		29,716		(1,079	)		60,754		(1,660	)
Mortgage-backed securities – commercial		1,415		(17	)		—		—			1,415		(17	)
Collateralized mortgage obligation – residential		—		—			4,821		(216	)		4,821		(216	)
Total temporarily impaired	$	71,628	$	(1,191	)	$	45,259	$	(1,787	)	$	116,887	$	(2,978	)

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.

The unrealized losses within the securities portfolio as of September 30, 2018 have not been recognized into income because the decline in fair value is not attributed to credit quality and management does not intend to sell, and it is not likely that management will be required to sell, the securities prior to their anticipated recovery. The decline in fair value within the securities portfolio is largely due to changes in interest rates and the fair value is expected to recover as the securities approach maturity. The mortgage-backed securities and collateralized mortgage obligations were primarily issued by Fannie Mae, Freddie Mac and Ginnie Mae, institutions which the government has affirmed its commitment to support. The Corporation does not own any private label mortgage-backed securities.

9

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Note 3 – Loans

Major classifications of loans were as follows:

	September 30, 2018			June 30, 2018
Commercial	$	62,242		$	60,995
Commercial real estate:
Construction		4,568			5,394
Other		191,096			183,383
1 – 4 Family residential real estate:
Owner occupied		49,573			47,433
Non-owner occupied		14,775			15,516
Construction		1,825			1,171
Consumer		4,856			4,873
Subtotal		328,935			318,765
Net Deferred loan fees and costs		(253	)		(256	)
Allowance for loan losses		(3,538	)		(3,422	)
Net Loans	$	325,144		$	315,087

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2018:

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	586	$	2,277	$	499	$	60		$	3,422
Provision for loan losses		16		100		5		(6	)		115
Loans charged-off		—		—		—		(7	)		(7	)
Recoveries		—		1		3		4			8
Total ending allowance balance	$	602	$	2,378	$	507	$	51		$	3,538

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2017:

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	518	$	2,038	$	473	$	57		$	3,086
Provision for loan losses		52		25		—		13			90
Loans charged-off		—		—		—		(3	)		(3	)
Recoveries		2		18		—		1			21
Total ending allowance balance	$	572	$	2,081	$	473	$	68		$	3,194

10

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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 September 30, 2018. Included in the recorded investment in loans is $859 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	$	—	$	29	$	—	$	—	$	29
Collectively evaluated for impairment		602		2,349		507		51		3,509
Total ending allowance balance	$	602	$	2,378	$	507	$	51	$	3,538
Recorded investment in loans:
Loans individually evaluated for impairment	$	87	$	1,606	$	388	$	—	$	2,081
Loans collectively evaluated for impairment		62,238		194,132		66,229		4,861		327,460
Total ending loans balance	$	62,325	$	195,738	$	66,617	$	4,861	$	329,541

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, 2018. Included in the recorded investment in loans is $732 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	$	—	$	29	$	—	$	—	$	29
Collectively evaluated for impairment		586		2,248		499		60		3,393
Total ending allowance balance	$	586	$	2,277	$	499	$	60	$	3,422
Recorded investment in loans:
Loans individually evaluated for impairment	$	100	$	1,562	$	398	$	—	$	2,060
Loans collectively evaluated for impairment		60,979		187,191		64,135		4,876		317,181
Total ending loans balance	$	61,079	$	188,753	$	64,533	$	4,876	$	319,241

11

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

The following table presents information related to unpaid principal balance, recorded investment and interest income associated with loans individually evaluated for impairment by class of loans as of September 30, 2018 and for the three months ended September 30, 2018:

(Dollars in thousands, except per share amounts)

	As of September 30, 2018						Three Months ended September 30, 2018
	Unpaid				Allowance for Loan		Average		Interest		Cash Basis
	Principal		Recorded		Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	87	$	87	$	—	$	71	$	1	$	1
Commercial real estate:
Other		1,499		1,376		—		1,369		11		11
1-4 Family residential real estate:
Owner occupied		129		99		—		99		—		—
Non-owner occupied		309		289		—		292		—		—
With an allowance recorded:
Commercial real estate:
Other		228		230		29		231		3		3
Total	$	2,252	$	2,081	$	29	$	2,062	$	15	$	15

The following table presents information related to unpaid principal balance, recorded investment and interest income associated with loans individually evaluated for impairment by class of loans as of June 30, 2018 and for the three months ended September 30, 2017:

	As of June 30, 2018						Three Months ended September 30, 2017
	Unpaid				Allowance for Loan		Average		Interest		Cash Basis
	Principal		Recorded		Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	100	$	100	$	—	$	114	$	2	$	2
Commercial real estate:
Other		1,330		1,330		—		1,053		10		10
1-4 Family residential real estate:
Owner occupied		101		101		—		102		—		—
Non-owner occupied		297		297		—		327		—		—
With an allowance recorded:
Commercial real estate:
Other		231		232		29		343		—		—
Total	$	2,059	$	2,060	$	29	$	1,939	$	12	$	12

12

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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 September 30, 2018 and June 30, 2018:

	September 30, 2018				June 30, 2018
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial	$	—	$	—	$	—	$	—
Commercial real estate:
Other		675		—		702		—
1 – 4 Family residential:
Owner occupied		89		1		90		—
Non-owner occupied		289		—		298		—
Total	$	1,053	$	1	$	1,090	$	—

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 September 30, 2018 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	$	—	$	—	$	—	$	—	$	62,325	$	62,325
Commercial real estate:
Construction		—		—		—		—		4,555		4,555
Other		15		—		219		234		190,949		191,183
1-4 Family residential:
Owner occupied		49		—		81		130		49,875		50,005
Non-owner occupied		—		—		—		—		14,775		14,775
Construction		—		—		—		—		1,837		1,837
Consumer		11		3		—		14		4,847		4,861
Total	$	75	$	3	$	300	$	378	$	329,163	$	329,541

The above table of past due loans includes the recorded investment in non-accrual loans of $24 in the 30 – 59 days category, $299 in the 90 days or greater category and $730 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, 2018 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	$	—	$	—	$	—	$	—	$	61,079	$	61,079
Commercial real estate:
Construction		—		—		—		—		5,386		5,386
Other		238		—		—		238		183,129		183,367
1-4 Family residential:
Owner occupied		11		—		80		91		47,738		47,829
Non-owner occupied		—		—		—		—		15,514		15,514
Construction		—		—		—		—		1,190		1,190
Consumer		7		—		—		7		4,869		4,876
Total	$	256	$	—	$	80	$	336	$	318,905	$	319,241

The above table of past due loans includes the recorded investment in non-accrual loans of $249 in the 30-59 days, $80 in the 90 days or greater category and $761 in the loans not past due category.

13

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Troubled Debt Restructurings (TDR):

The Corporation has certain loans that have been modified in order to maximize collection of loan balances. A modified loan is classified as a TDR if, for economic reasons, management grants a concession to the original terms and conditions of the loan to a borrower who is experiencing financial difficulties that it would not have otherwise considered.

At September 30, 2018 and June 30, 2018, the Corporation had $1,318 and $1,269, respectively, of loans classified as TDRs which are included in impaired loans above. As of September 30, 2018 and June 30, 2018, the Corporation had committed to lend an additional $38 and $174, respectively, to customers with outstanding loans that were classified as troubled debt restructurings. At September 30, 2018 and June 30, 2018, the Corporation had $29 of specific reserves allocated to these loans.

During the three-month periods ended September 30, 2018 and 2017, there were no loan modifications completed that were classified as troubled debt restructurings. There were no charge offs from troubled debt restructurings that were completed during the three-month periods ended September 30, 2018 and 2017.

There were no loans classified as troubled debt restructurings for which there was a payment default within 12 months following the modification during the three-month periods ended September 30, 2018 and 2017. A loan is considered in payment default once it is 90 days contractually past due under the modified terms.

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, current economic trends and other relevant information. 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. Management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt and affirms the risk ratings for the loans and leases in their respective portfolio on an annual 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.

14

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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 are disclosed in the previous table within this footnote. Based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans was as follows:

	As of September 30, 2018
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	60,364	$	428	$	1,080	$	—	$	453
Commercial real estate:
Construction		4,555		—		—		—		—
Other		180,579		6,793		2,177		675		959
1-4 Family residential real estate:
Owner occupied		2,375		95		27		9		47,499
Non-owner occupied		13,438		192		410		289		446
Construction		695		—		—		—		1,142
Consumer		80		—		—		—		4,781
Total	$	262,086	$	7,508	$	3,694	$	973	$	55,280

	As of June 30, 2018
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	59,214	$	288	$	1,162	$	—	$	415
Commercial real estate:
Construction		5,386		—		—		—		—
Other		172,471		7,061		1,878		702		1,255
1-4 Family residential real estate:
Owner occupied		2,577		—		27		11		45,214
Non-owner occupied		14,025		195		417		298		579
Construction		8		—		—		—		1,182
Consumer		93		—		—		—		4,783
Total	$	253,774	$	7,544	$	3,484	$	1,011	$	53,428

Note 4 - 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.

15

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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 September 30, 2018 Using
	Balance at September 30, 2018		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	15,839	$	—	$	15,839	$	—
Obligations of states and political subdivisions		55,058		—		55,058		—
Mortgage-backed securities – residential		59,927		—		59,927		—
Mortgage-backed securities – commercial		1,408		—		1,408		—
Collateralized mortgage obligations - residential		5,436		—		5,436		—

			Fair Value Measurements at June 30, 2018 Using
	Balance at June 30, 2018		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	16,122	$	—	$	16,122	$	—
Obligations of states and political subdivisions		56,590		—		56,590		—
Mortgage-backed securities - residential		63,408		—		63,408		—
Mortgage-backed securities - commercial		1,415		—		1,415		—
Collateralized mortgage obligations - residential		5,766		—		5,766		—
Pooled trust preferred security		727		—		727		—

There were no transfers between Level 1 and Level 2 during the three-month periods ended September 30, 2018 or 2017.

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.

16

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

There were no financial assets measured at fair value on a non-recurring basis at September 30, 2018 and June 30, 2018. There was no impact to the provision for loan losses for the three months ended September 30, 2018. The resulting impact to the provision for loan losses was a decrease of $17 being recorded for the three months ended September 30, 2017.

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:

	September 30, 2018				June 30, 2018
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	10,785	$	10,785	$	7,772	$	7,772
Level 2 inputs:
Certificates of deposits in other financial institutions		2,973		2,966		2,973		2,976
Loans held for sale		2,663		2,718		1,448		1,474
Accrued interest receivable		1,648		1,648		1,404		1,404
Level 3 inputs:
Securities held-to-maturity		3,929		3,965		4,024		4,048
Loans, net		325,144		319,824		315,087		311,642
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		361,490		361,490		351,422		351,422
Time deposits		79,049		78,665		78,541		78,332
Short-term borrowings		2,902		2,902		13,367		13,367
Federal Home Loan Bank advances		19,739		19,274		11,756		11,146
Accrued interest payable		88		88		68		68

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: Effective for the current period ended September 30, 2018, the fair value of loans were determined using an exit price methodology as prescribed by ASU 2016-01. The exit price estimation of fair value is based on the future value of expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a current market rate based on the relative credit risk of the loan. In addition, an incremental liquidity discount is applied resulting in a Level 3 classification. In comparison, loan fair values as of June 30, 2018 were estimated based on an entrance price methodology. As a result, the fair value adjustments as of September 30, 2018 and June 30, 2018 are not comparable.

17

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Securities held-to-maturity: The held-to-maturity securities are general obligation and revenue bonds made to local municipalities. The fair values of these securities are estimated 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 September 30, 2018 and June 30, 2018, for deposits of similar remaining maturities, resulting in a Level 2 classification. Estimated fair value does not include the benefit that results 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 September 30, 2018 and June 30, 2018 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.

Note 5 – 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. There were no equity instruments that were anti-dilutive for the three-months ended September 30, 2018. There were 2,062 shares of restricted stock that were anti-dilutive for the three-months ended September 30, 2017. The following table details the calculation of basic and diluted earnings per share:

	For the Three Months Ended September 30,
	2018		2017
Basic:
Net income available to common shareholders	$	1,673	$	929
Weighted average common shares outstanding		2,729,103		2,724,997
Basic income per share	$	0.61	$	0.34
Diluted:
Net income available to common shareholders	$	1,673	$	929
Weighted average common shares outstanding		2,729,103		2,724,997
Dilutive effect of restricted stock		68		—
Total common shares and dilutive potential common shares		2,729,171		2,724,997
Dilutive income per share	$	0.61	$	0.34

18

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Note 6 –Accumulated Other Comprehensive Income (Loss)

The components of other comprehensive income related to unrealized gains and losses on available-for-sale securities for the three-month periods ended September 30, 2018 and 2017, were as follows:

	Pretax			Tax Effect			After-tax			Affected Line Item in Consolidated Statements of Income
Balance as of June 30, 2018	$	(2,069	)	$	434		$	(1,635	)
Unrealized holding loss on available-for-sale securities arising during the period		(893	)		188			(705	)
Amounts reclassified from accumulated other comprehensive income		(587	)		124			(463	)	(a)(b)
Net current period other comprehensive loss		(1,480	)		312			(1,168	)
Balance after reclassification as of September 30, 2018	$	(3,549	)	$	746		$	(2,803	)
Balance as of June 30, 2017	$	675		$	(230	)	$	445
Unrealized holding gains on available-for-sale securities arising during the period		104			(35	)		69
Amounts reclassified from accumulated other comprehensive income		(38	)		13			(25	)	(a)(b)
Net current period other comprehensive income		66			(22	)		44
Balance as of September 30, 2017	$	741		$	(252	)	$	489

(a) Securities (gains) losses, net

(b) Income tax expense

Note 7 – Revenue Recognition

On July 1, 2018, the Corporation adopted ASU 2014-09 "Revenue from Contracts with Customers" (Topic 606) and all subsequent ASUs that modified Topic 606. Interest income, net securities gains (losses), gains from the sale of mortgage loans and bank-owned life insurance are not included within the scope of Topic 606. For the revenue streams in the scope of Topic 606, service charges on deposits and electronic banking fees, there are no significant judgments related to the amount and timing of revenue recognition. All of the Corporation's revenue from contracts with customers is recognized within noninterest income.

Service charges on deposit accounts: The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering and other fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Interchange income: The Corporation earns interchange income from cardholder transactions conducted through the various payment networks. Interchange income from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The gross amount of these fees is processed through noninterest income.

19

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

The following table presents the Corporation's sources of noninterest income for the three months ended September 30, 2018 and 2017.

	For the three months ended September 30,
	2018		2017
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	316	$	308
Debit card interchange income		358		323
Other income		165		135
Noninterest income (in scope of Topic 606)		839		766
Noninterest income (out-of-scope of Topic 606)		656		106
Total noninterest income	$	1,495	$	872

20

Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations

(Dollars in thousands, except per share data)

General

The following is management’s analysis of the Corporation’s results of operations for the three months ended September 30, 2018, compared to the same period in 2017, and the consolidated balance sheet at September 30, 2018, compared to June 30, 2018. This discussion is designed to provide a more comprehensive review of the operating results and financial condition than could be obtained from an examination of the financial statements alone. This analysis should be read in conjunction with the consolidated financial statements and related footnotes and the selected financial data included elsewhere in this report.

Overview

Consumers Bancorp, Inc., a bank holding company incorporated under the laws of the State of Ohio (the Corporation), owns all of the issued and outstanding common shares of Consumers National Bank, a bank chartered under the laws of the United States of America (the Bank). The Corporation’s activities have been limited primarily to holding the common shares of the Bank. 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 market area, consisting primarily of Carroll, Columbiana, Jefferson, Stark, Summit, Wayne and contiguous counties in Ohio. The Bank also invests in securities consisting primarily of U.S. government sponsored entities, municipal obligations, mortgage-backed and collateralized mortgage obligations issued by Fannie Mae, Freddie Mac and Ginnie Mae.

Results of Operations

Three Months Ended September 30, 2018 and 2017

In the first quarter of fiscal year 2019, net income increased by $744, or 80.1% from the same period last year. Net income for the first quarter of fiscal year 2019 was $1,673, or $0.61 per common share, compared to $929, or $0.34 per common share for the three months ended September 30, 2017. The following are key highlights of our results of operations for the three months ended September 30, 2018:

● net interest income increased by $513 to $4,299, or by 13.5%, in the first quarter of fiscal year 2019 from the same prior year period;

● net securities gains in the first quarter of fiscal year 2019 totaled $587 compared to $38 in the same prior year period;

● noninterest income, excluding net securities gains, increased by $74, or 8.9%, in the first quarter of fiscal year 2019 from the same prior year period; and

● noninterest expenses increased by $291, or 8.6%, in the first quarter of fiscal year 2019 from the same prior year period.

Return on average equity and return on average assets were 14.92% and 1.32%, respectively, for the first quarter of fiscal year 2019 compared to 8.35% and 0.79%, respectively, for the same prior year period.

21

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Net Interest Income

Net interest income, the difference between interest income earned on interest-earning assets and interest expense incurred on interest-bearing liabilities, is the largest component of the Corporation’s earnings. Net interest income is affected by changes in the volumes, rates and composition of interest-earning assets and interest-bearing liabilities. Net interest margin is calculated by dividing net interest income on a fully tax equivalent basis (FTE) by total average interest-earning assets. FTE income includes tax-exempt income, restated to a pre-tax equivalent, based on the statutory federal income tax rate. The federal income tax rate in effect for the first quarter of fiscal year 2019 was 21.0% compared with 34.0% for the same period in the 2018 fiscal year. A 21.0% federal tax rate went into effect on January 1, 2018 with the enactment of the Tax Cuts and Jobs Act. All average balances are daily average balances. Non-accruing loans are included in average loan balances.

The Corporation’s net interest margin was 3.70% for the three months ended September 30, 2018, compared with 3.63% for the same period in 2017. FTE net interest income for the three months ended September 30, 2018 increased by $460, or 11.6%, to $4,434 from $3,974 for the same year ago period.

Tax-equivalent interest income for the three months ended September 30, 2018 increased by $699, or 16.1%, from the same year ago period. Interest income was positively impacted by a $38,523, or 8.9%, increase in average interest-earning assets from the same prior year period. Additionally, the Corporation’s yield on average interest-earning assets increased to 4.20% for the three months ended September 30, 2018 from 3.96% for the same period last year. The yield on average interest-earning assets increased despite a decline in the tax-equivalent yield on nontaxable securities which occurred as a result of the decline in the statutory federal tax rate. The increase in the yield on average interest-earning assets was primarily a result of an increase in interest rates as well as a positive change in the earning asset mix with higher yielding loans increasing faster than lower yielding securities.

Interest expense for the three months ended September 30, 2018 increased by $239 from the same year ago period. The Corporation’s cost of funds was 0.69% for the three months ended September 30, 2018 compared with 0.46% for the same year ago period. The increase in short term market interest rates has impacted the rates paid on all interest-bearing deposit products and borrowings.

22

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Average Balance Sheets and Analysis of Net Interest Income for the Three Months Ended September 30, (In thousands, except percentages)
	2018								2017
	Average Balance			Interest		Yield/ Rate			Average Balance			Interest		Yield/ Rate
Interest-earning assets:
Taxable securities	$	86,075		$	526		2.37	%	$	83,792		$	490		2.33	%
Nontaxable securities (1)		59,260			506		3.37			60,714			549		3.63
Loans receivable (1)		322,193			3,953		4.87			280,396			3,234		4.58
Federal bank and other restricted stocks		1,459			22		5.98			1,424			21		5.85
Interest bearing deposits and federal funds sold		4,421			23		2.06			8,559			37		1.72
Total interest-earning assets		473,408			5,030		4.20	%		434,885			4,331		3.96	%
Noninterest-earning assets		30,809								31,752
Total Assets	$	504,217							$	466,637
Interest-bearing liabilities:
NOW	$	82,368		$	125		0.60	%	$	53,199		$	20		0.15	%
Savings		163,262			137		0.33			151,658			80		0.21
Time deposits		78,542			252		1.27			66,420			148		0.88
Short-term borrowings		4,045			14		1.37			26,281			55		0.83
FHLB advances		15,656			68		1.72			12,865			54		1.67
Total interest-bearing liabilities		343,873			596		0.69	%		310,423			357		0.46	%
Noninterest-bearing liabilities:
Noninterest-bearing checking accounts		111,677								108,185
Other liabilities		4,185								3,881
Total liabilities		459,735								422,489
Shareholders’ equity		44,482								44,148
Total liabilities and shareholders’ equity	$	504,217							$	466,637
Net interest income, interest rate spread (1)				$	4,434		3.51	%				$	3,974		3.50	%
Net interest margin (net interest as a percent of average interest-earning assets) (1)							3.70	%							3.63	%
Federal tax exemption on non-taxable securities and loans included in interest income				$	135							$	188
Average interest-earning assets to interest-bearing liabilities		137.67	%							140.09	%

(1) calculated on a fully taxable equivalent basis utilizing a statutory federal income tax rate of 21.0% in the 2019 fiscal year and 34.0% in the 2018 fiscal year

23

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Provision for Loan Losses

The provision for loan losses represents the charge to income necessary to adjust the allowance for loan losses to an amount that represents management’s assessment of the estimated probable incurred credit losses in the Bank’s loan portfolio that have been incurred at each balance sheet date. For the three months ended September 30, 2018, the provision for loan losses was $115 compared to $90 for the same prior year period.

Non-performing loans were $1,054 as of September 30, 2018 compared with $1,090 as of June 30, 2018 and $978 as of September 30, 2017. For the three months ended September 30, 2018, net charge-offs totaled $1 compared with net recoveries of $18 for the same prior year period. The allowance for loan losses as a percentage of loans was 1.08% at September 30, 2018 and 1.07% at June 30, 2018. The provision for loan losses for the period ended September 30, 2018 was considered sufficient by management for maintaining an appropriate allowance for probable incurred credit losses.

Noninterest Income

Noninterest income increased by $623, or 71.4%, for the first quarter of fiscal year 2019 from the same period last year. Net securities gains in the first quarter of fiscal year 2019 totaled $587 compared to $38 in the same prior year period. During the first quarter of fiscal year 2019, the pooled trust preferred security was sold because of the significant increase in the value of this security resulting in a gain of $593. Excluding net securities gains, noninterest income increased by $74, or 8.9%, for the first quarter of fiscal year 2019 from the same period last year. Noninterest income was positively impacted by increases in debit card interchange income and gains from the sale of mortgage loans.

Noninterest Expenses

Total noninterest expenses increased to $3,684, or by 8.6%, during the first quarter of fiscal year 2019, compared with $3,393 during the same year ago period. Total noninterest expenses were impacted by increases in salary, incentive, legal and consulting expenses.

Income Taxes

Income tax expense was $322 for the three months ended September 30, 2018 compared to $246 for the three months ended September 30, 2017. The effective tax rate was 16.1% for the three months ended September 30, 2018 compared to 20.9% for the three months ended September 30, 2017. Income tax expense was higher in the 2019 fiscal year compared to the same prior year period primarily due to an $820 increase in income before income taxes. The effective tax rate was lower in the 2019 fiscal year as a result of the enactment of the Tax Cuts and Jobs Act which lowered the federal corporate tax rate beginning on January 1, 2018. The federal corporate tax rate was 21.0% in the first quarter of fiscal year 2019 compared to 34.0% in the first quarter of fiscal year 2018.

Financial Condition

Total assets at September 30, 2018 were $510,789 compared to $502,619 at June 30, 2018, an increase of $8,170, or an annualized 6.5%.

Total loans increased by $10,173, or an annualized 12.8%, from $318,509 at June 30, 2018 to $328,682 at September 30, 2018. The growth in the loan portfolio was primarily related to growth within the commercial real estate and 1-4 family residential real estate segments to borrowers within the Bank’s primary market area. The loan growth was primarily funded by an increase of $10,576, or an annualized 9.8%, in total deposits.

24

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Non-Performing Assets

The following table presents the aggregate amounts of non-performing assets and respective ratios as of the dates indicated.

	September 30, 2018			June 30, 2018			September 30, 2017
Non-accrual loans	$	1,053		$	1,090		$	978
Loans past due over 90 days and still accruing		1			—			—
Total non-performing loans		1,054			1,090			978
Other real estate owned		—			—			—
Total non-performing assets	$	1,054		$	1,090		$	978
Non-performing loans to total loans		0.32	%		0.34	%		0.34	%
Allowance for loan losses to total non-performing loans		335.67	%		313.94	%		326.58	%

As of September 30, 2018, impaired loans totaled $2,081, of which $1,053 are included in non-accrual loans. Commercial and commercial real estate loans are classified as impaired if management determines that full collection of principal and interest, in accordance with the terms of the loan documents, is not probable. Impaired loans and non-performing loans have been considered in management’s analysis of the appropriateness of the allowance for loan losses. Management and the Board of Directors are closely monitoring these loans and believe that the prospects for recovery of principal and interest, less identified specific reserves, are favorable.

Contractual Obligations, Commitments, Contingent Liabilities and Off-Balance Sheet Arrangements

Liquidity

The objective of liquidity management is to ensure adequate cash flows to accommodate the demands of our customers and provide adequate flexibility for the Corporation to take advantage of market opportunities under both normal operating conditions and under unpredictable circumstances of industry or market stress. Cash is used to fund loans, purchase investments, fund the maturity of liabilities, and at times to fund deposit outflows and operating activities. The Corporation’s principal sources of funds are deposits; amortization and prepayments of loans; maturities, sales and principal receipts from securities; borrowings; and operations. Management considers the asset position of the Corporation to be sufficiently liquid to meet normal operating needs and conditions. The Corporation’s earning assets are mainly comprised of loans and investment securities. Management continually strives to obtain the best mix of loans and investments to both maximize yield and insure the soundness of the portfolio, as well as to provide funding for loan demand as needed.

For the three months ended September 30, 2018, net cash inflow from operating activities was $533, net cash outflows from investing activities was $5,259 and net cash inflows from financing activities was $7,739. A major source of cash was a $10,576 increase in deposits and $7,303 from sales, maturities, calls or principal pay downs on available-for-sale securities. A major use of cash was a $10,247 increase in loans. Total cash and cash equivalents were $10,785 as of September 30, 2018, compared to $7,772 at June 30, 2018 and $14,179 at September 30, 2017.

The Bank offers several types of deposit products to its customers. We believe the rates offered by the Bank and the fees charged for them are competitive with the rates and fees charged by other banks for similar deposit products currently available in the market area. Deposits totaled $440,539 at September 30, 2018 compared with $429,963 at June 30, 2018.

To provide an additional source of liquidity, the Corporation has entered into an agreement with the FHLB of Cincinnati. At September 30, 2018, advances from the FHLB of Cincinnati totaled $19,739 compared with $11,756 at June 30, 2018. As of September 30, 2018, the Bank had the ability to borrow an additional $17,355 from the FHLB of Cincinnati based on a blanket pledge of qualifying first mortgage and multi-family loans. The Corporation considers the FHLB of Cincinnati to be a reliable source of liquidity funding, secondary to its deposit base.

Short-term borrowings consisted of repurchase agreements, which are financing arrangements that mature daily, and federal funds purchased from correspondent banks. The Bank pledges securities as collateral for the repurchase agreements. Short-term borrowings totaled $2,902 at September 30, 2018 and $13,367 at June 30, 2018.

25

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Jumbo time deposits (those with balances of $250 and over) totaled $23,430 at September 30, 2018 and $23,018 at June 30, 2018. These deposits are monitored closely by the Corporation and are mainly priced on an individual basis. When these deposits are from a municipality, certain bank-owned securities are pledged to guarantee the safety of these public fund deposits as required by Ohio law. The Corporation has the option to use a fee-paid broker to obtain deposits from outside its normal service area as an additional source of funding. The Corporation, however, does not rely upon these deposits as a primary source of funding. Although management monitors interest rates on an ongoing basis, a quarterly rate sensitivity report is used to determine the effect of interest rate changes on the financial statements. In the opinion of management, enough assets or liabilities could be repriced over the near term (up to three years) to compensate for such changes. The spread on interest rates, or the difference between the average earning assets and the average interest-bearing liabilities, is monitored quarterly.

Off-Balance Sheet Arrangements

In the normal course of business, to meet the financial needs of our customers, we are a party to financial instruments with off-balance sheet risk. These financial instruments generally include commitments to originate mortgage, commercial and consumer loans, and involve to varying degrees, elements of credit and interest rate risk in excess of amounts recognized in the Consolidated Balance Sheets. The maximum exposure to credit loss in the event of nonperformance by the borrower is represented by the contractual amount of those instruments. Since commitments to extend credit have a fixed expiration date or other termination clause, some commitments will expire without being drawn upon and the total commitment amounts do not necessarily represent future cash requirements. The same credit policies are used in making commitments as are used for on-balance sheet instruments and collateral is required in instances where deemed necessary. Undisbursed balances of loans closed include funds not disbursed but committed for construction projects. Unused lines of credit include funds not disbursed, but committed for home equity, commercial and consumer lines of credit. Financial standby letters of credit are conditional commitments issued to guarantee the performance of a customer to a third party. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. Total unused commitments were $67,113 at September 30, 2018 and $63,854 at June 30, 2018.

Capital Resources

Total shareholders’ equity increased to $43,970 as of September 30, 2018 from $43,761 as of June 30, 2018. The increase was primarily the result of $1,673 of net income for the first quarter of fiscal year 2019. This increase was partially offset by a net increase of $1,168 in the accumulated other comprehensive loss from the unrealized losses on the mark-to-market of available-for-sale securities and cash dividends paid of $355.

The Bank is subject to various regulatory capital requirements administered by federal regulatory 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. Failure to meet various capital requirements can initiate regulatory action that could have a direct material effect on the Corporation’s financial statements.

As of September 30, 2018, the Bank’s common equity tier 1 capital and tier 1 capital ratios were 12.41% and the leverage and total capital ratios were 8.94% and 13.39%, respectively. This compares with common equity tier 1 capital and tier 1 capital ratios of 12.20% and leverage and total risk-based capital ratios of 8.74% and 13.15%, respectively, as of June 30, 2018. The Bank exceeded minimum regulatory capital requirements to be considered well-capitalized for both periods. Management is not aware of any matters occurring subsequent to September 30, 2018 that would cause the Bank’s capital category to change.

26

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Critical Accounting Policies

The financial condition and results of operations for the Corporation presented in the Consolidated Financial Statements, accompanying notes to the Consolidated Financial Statements and Management’s Discussion and Analysis of Financial Condition and Results of Operations are, to a large degree, dependent upon the Corporation’s accounting policies. The selection and application of these accounting policies involve judgments, estimates and uncertainties that are susceptible to change.

The Corporation has identified the appropriateness of the allowance for loan losses as a critical accounting policy and an understanding of this policy is necessary to understand the financial statements. Critical accounting policies are those policies that require management’s most difficult, subjective or complex judgments often as a result of the need to make estimates about the effect of matters that are inherently uncertain. Note one (Summary of Significant Accounting Policies - Allowance for Loan Losses), note three (Loans) and Management’s Discussion and Analysis of Financial Condition and Results of Operation (Critical Accounting Policies and Use of Significant Estimates) of the 2018 Form 10-K provide detail with regard to the Corporation’s accounting for the allowance for loan losses. There have been no significant changes in the application of accounting policies since June 30, 2018.

Forward-Looking Statements

Certain statements contained in this Quarterly Report on Form 10-Q, which are not statements of historical fact, constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. In addition, all statements set forth in future filings by the Corporation with the SEC, or other public or shareholder communications, or in oral statements made with the approval of an authorized executive officer, that are not historical in nature, including words or phrases such as “will likely result,” “are expected to,” “will continue,” “is anticipated,” “estimate,” “project,” “believe” or similar expressions are intended to identify “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. These forward-looking statements may involve risks and uncertainties that are difficult to predict, may be beyond our control, and could cause actual results to differ materially from those described in such statements. Any such forward-looking statements are made only as of the date of this report or the respective dates of the relevant incorporated documents, as the case may be, and, except as required by law, we undertake no obligation to update these forward-looking statements to reflect subsequent events or circumstances. Factors that could cause actual results for future periods to differ materially from those anticipated or projected include, but are not limited to:

● changes in local, regional and national economic conditions becoming less favorable than we expect, resulting in a deterioration in credit quality of our loan assets, among other things;

● the effects of, and changes in, trade, monetary and fiscal policies and laws, including interest rate policies of the Federal Reserve Board;

● inflation, interest rate, securities market and monetary fluctuations;

● changes in the level of non-performing assets and charge-offs;

● declining asset values impacting the underlying value of collateral;

● the effect of changes in laws and regulations (including laws and regulations concerning taxes, banking, securities and insurance) with which we must comply;

● competitive pressures on product pricing and services;

● breaches of security or failures of our technology systems due to technological or other factors and cybersecurity threats;

● changes in the reliability of our vendors, internal control systems or information systems;

● our ability to attract and retain qualified employees;

● changes in accounting policies, rules and interpretations;

● unanticipated changes in our liquidity position, including, but not limited to, changes in the cost of liquidity and our ability to find alternative funding sources; and

● changes in consumer spending, borrowing and savings habits.

The risks and uncertainties identified above are not the only risks we face. Additional risks and uncertainties not presently known to us or that we currently believe to be immaterial also may adversely affect us. Should any known or unknown risks and uncertainties develop into actual events, those developments could have material adverse effects on our business, financial condition and results of operations. 

27

CONSUMERS BANCORP, INC.

Management's Discussion and Analysis of Financial Condition

and Results of Operations (continued)

(Dollars in thousands, except per share data)

Item 4 – Controls and Procedures

Evaluation of Disclosure Controls and Procedures

As of the end of the period covered by the report, an evaluation was performed under the supervision and with the participation of the Corporation’s management, including the Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures pursuant to Exchange Act Rule 13a-15e. Based on the evaluation, the Chief Executive Officer and Chief Financial Officer concluded that the Corporation’s disclosure controls and procedures were effective as of September 30, 2018.

Changes in Internal Controls Over Financial Reporting

There have not been any changes in the Corporation’s internal control over financial reporting that occurred during the Corporation’s last quarter that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

28

CONSUMERS BANCORP, INC.

PART II – OTHER INFORMATION

Item 1 – Legal Proceedings

None

Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds

None

Item 3 – Defaults Upon Senior Securities

None

Item 4 – Mine Safety Disclosures

Not Applicable

Item 5 – Other Information

None 

Item 6 – Exhibits

Exhibit Number	Description
Exhibit 11	Statement regarding Computation of Per Share Earnings (included in Note 5 to the Consolidated Financial Statements).

Exhibit 31.1 Rule 13a-14(a)/15d-14(a) Certification of Chief Executive Officer.

Exhibit 31.2 Rule 13a-14(a)/15d-14(a) Certification of Chief Financial Officer.

Exhibit 32.1 Certification of Chief Executive Officer and Chief Financial Officer Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes Oxley Act of 2002.

Exhibit 101 The following materials from Consumers Bancorp, Inc.’s Form 10-Q Report for the quarterly period ended September 30, 2018, formatted in XBRL (Extensible Business Reporting Language) include: (1) Unaudited Consolidated Balance Sheets, (2) Unaudited Consolidated Statements of Income, (3) Unaudited Consolidated Statements of Comprehensive Income, (4) Unaudited Consolidated Statement of Changes in Shareholders’ Equity, (5) Unaudited Condensed Consolidated Statements of Cash Flows, and (6) the Notes to Unaudited Condensed Consolidated Financial Statements.

29

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	CONSUMERS BANCORP, INC.                   (Registrant)
Date: November 14, 2018	/s/ Ralph J. Lober                       Ralph J. Lober, II President & Chief Executive Officer (principal executive officer)
Date: November 14, 2018	/s/ Renee K. Wood                     Renee K. Wood Chief Financial Officer & Treasurer (principal financial officer)

30

EX-31.1

EXHIBIT 31.1

I, Ralph J. Lober, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Consumers Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 14, 2018	By:      /s/ Ralph J. Lober
Date	Ralph J. Lober, II President & Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Renee K. Wood, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Consumers Bancorp, Inc.;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a – 15(e) and 15d – 15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors:

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

November 14, 2018	By:      /s/ Renee K. Wood
Date	Renee K. Wood Chief Financial Officer & Treasurer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO 18 U.S.C. SECTION 1350, AS ADOPTED PURSUANT TO SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report of Consumers Bancorp, Inc. (the “Corporation”) on Form 10-Q for the period ended September 30, 2018 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), each undersigned officer of the Corporation does hereby certify that:

a) The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, as amended; and

b) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Corporation.

Date: November 14, 2018

/s/ Ralph J. Lober, II

Ralph J. Lober, II

President & Chief Executive Officer

/s/ Renee K. Wood 

Renee K. Wood

Chief Financial Officer & Treasurer

XML

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2018	Nov. 12, 2018
Document Information [Line Items]
Entity Registrant Name	CONSUMERS BANCORP INC /OH/
Entity Central Index Key	0001006830
Trading Symbol	cbkm
Current Fiscal Year End Date	--06-30
Entity Filer Category	Non-accelerated Filer
Entity Current Reporting Status	Yes
Entity Emerging Growth Company	false
Entity Small Business	true
Entity Common Stock, Shares Outstanding (in shares)		2,733,845
Document Type	10-Q
Document Period End Date	Sep. 30, 2018
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
ASSETS
Cash on hand and noninterest-bearing deposits in financial institutions	$ 8,579	$ 7,615
Federal funds sold and interest-bearing deposits in financial institutions	2,206	157
Total cash and cash equivalents	10,785	7,772
Certificates of deposit in other financial institutions	2,973	2,973
Securities, available-for-sale	137,668	144,028
Securities, held-to-maturity (fair value of $3,965 at September 30, 2018 and $4,048 at June 30, 2018)	3,929	4,024
Federal bank and other restricted stocks, at cost	1,459	1,459
Loans held for sale	2,663	1,448
Total loans	328,682	318,509
Less allowance for loan losses	(3,538)	(3,422)
Net loans	325,144	315,087
Cash surrender value of life insurance	9,404	9,335
Premises and equipment, net	13,474	13,315
Accrued interest receivable and other assets	3,290	3,178
Total assets	510,789	502,619
LIABILITIES
Noninterest-bearing demand	113,123	107,919
Interest bearing demand	85,618	81,299
Savings	162,749	162,204
Time	79,049	78,541
Total deposits	440,539	429,963
Short-term borrowings	2,902	13,367
Federal Home Loan Bank advances	19,739	11,756
Accrued interest and other liabilities	3,639	3,772
Total liabilities	466,819	458,858
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY
Preferred stock (no par value, 350,000 shares authorized, none outstanding)	0	0
Common stock (no par value, 3,500,000 shares authorized; 2,854,133 shares issued as of September 30, 2018 and June 30, 2018)	14,628	14,630
Retained earnings	33,660	32,342
Treasury stock, at cost (120,288 and 124,489 common shares as of September 30, 2018 and June 30, 2018, respectively)	(1,515)	(1,576)
Accumulated other comprehensive loss	(2,803)	(1,635)
Total shareholders’ equity	43,970	43,761
Total liabilities and shareholders’ equity	$ 510,789	$ 502,619

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Held-to-maturity securities, fair value	$ 3,965	$ 4,048
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	350,000	350,000
Common shares, par value (in dollars per share)	$ 0	$ 0
Common shares, shares authorized (in shares)	3,500,000	3,500,000
Common shares, shares issued (in shares)	2,854,133	2,854,133
Treasury stock, shares (in shares)	120,288	124,489

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Interest and dividend income
Loans, including fees	$ 3,949	$ 3,228
Securities, taxable	526	490
Securities, tax-exempt	375	367
Federal bank and other restricted stocks	22	21
Federal funds sold and other interest bearing deposits	23	37
Total interest and dividend income	4,895	4,143
Interest expense
Deposits	514	248
Short-term borrowings	14	55
Federal Home Loan Bank advances	68	54
Total interest expense	596	357
Net interest income	4,299	3,786
Provision for loan losses	115	90
Net interest income after provision for loan losses	4,184	3,696
Noninterest income
Noninterest income (in scope of Topic 606)	839	766
Bank owned life insurance income	69	68
Securities gains, net	587	38
Total noninterest income	1,495	872
Noninterest expenses
Salaries and employee benefits	1,975	1,810
Occupancy and equipment	488	455
Data processing expenses	150	148
Debit card processing expenses	194	180
Professional and director fees	170	117
FDIC assessments	38	46
Franchise taxes	89	84
Marketing and advertising	104	78
Telephone and network communications	72	82
Other	404	393
Total noninterest expenses	3,684	3,393
Income before income taxes	1,995	1,175
Income tax expense	322	246
Net income	$ 1,673	$ 929
Basic and diluted earnings per share (in dollars per share)	$ 0.61	$ 0.34
Deposit Account [Member]
Noninterest income
Noninterest income (in scope of Topic 606)	$ 316	$ 308
Debit Card [Member]
Noninterest income
Noninterest income (in scope of Topic 606)	358	323
Financial Service, Other [Member]
Noninterest income
Noninterest income (in scope of Topic 606)	$ 165	$ 135

XML

Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net income	$ 1,673	$ 929
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) arising during the period	(893)	104
Reclassification adjustment for gains included in income	(587)	(38)	[1],[2]
Net unrealized gains (losses)	(1,480)	66
Income tax effect	312	(22)
Other comprehensive income (loss)	(1,168)	44
Total comprehensive income	$ 505	$ 973

[1] Income tax expense

[2] Securities (gains) losses, net

XML

Condensed Consolidated Statements of Changes In Shareholders' Equity (Unaudited) $ in Thousands	USD ($) $ / shares
Balance at beginning of period at Jun. 30, 2017	$ 43,535
Net income	929
Other comprehensive income (loss)	44
4,201 and 6,321 shares issued associated with stock awards during the three months ended September 30, 2018 and 2017, respectively	90
204 Dividend reinvestment plan shares associated with forfeited and expired restricted stock awards retired to treasury stock during the three months ended September 30, 2017
Common cash dividends	(327)
Balance at the end of the period at Sep. 30, 2017	$ 44,271
Common cash dividends per share (in dollars per share) | $ / shares	$ 0.12
Balance at beginning of period at Jun. 30, 2018	$ 43,761
Net income	1,673
Other comprehensive income (loss)	(1,168)
4,201 and 6,321 shares issued associated with stock awards during the three months ended September 30, 2018 and 2017, respectively	59
204 Dividend reinvestment plan shares associated with forfeited and expired restricted stock awards retired to treasury stock during the three months ended September 30, 2017
Common cash dividends	(355)
Balance at the end of the period at Sep. 30, 2018	$ 43,970
Common cash dividends per share (in dollars per share) | $ / shares	$ 0.13

XML

Condensed Consolidated Statements of Changes In Shareholders' Equity (Unaudited) (Parentheticals) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Shares associated with stock awards (in shares)	4,201	6,321
Dividend reinvestment plan and restricted award forfeited and expired (in shares)		204

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Cash flows from operating activities
Net cash from operating activities	$ 533	$ 503
Cash flow from investing activities
Purchases	(2,060)	(426)
Maturities, calls and principal pay downs	4,730	4,412
Proceeds from sales	2,573	1,586
Securities held-to-maturity
Principal pay downs	95	95
Net increase in loans	(10,247)	(14,833)
Acquisition of premises and equipment	(350)	(86)
Sale of other real estate owned		71
Net cash from investing activities	(5,259)	(9,181)
Cash flow from financing activities
Net increase in deposit accounts	10,576	9,369
Net change in short-term borrowings	(10,465)	3,919
Proceeds from Federal Home Loan Bank advances	8,000
Repayments of Federal Home Loan Bank advances	(17)	(16)
Dividends paid	(355)	(327)
Net cash from financing activities	7,739	12,945
Increase in cash or cash equivalents	3,013	4,267
Cash and cash equivalents, beginning of period	7,772	9,912
Cash and cash equivalents, end of period	10,785	14,179
Supplemental disclosure of cash flow information:
Interest	576	347
Federal income taxes
Non-cash items:
Transfer from loans held for sale to portfolio	75
Issuance of treasury stock for stock awards	59
Expired and forfeited dividend reinvestment plan shares associated with restricted stock awards that were retired to treasury stock		$ 4

XML

Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

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

Note

1

– Summary of Significant Accounting Policies

:

Nature of Operations:

Consumers Bancorp, Inc. (the Corporation) is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, Consumers National Bank (the Bank), 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.

Basis of Presentation

: The consolidated financial statements for interim periods are unaudited and reflect all adjustments (consisting of only normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the financial position and results of operations and cash flows for the periods presented. The unaudited financial statements are presented in accordance with the requirements of Form

10

-Q and do

not

include all disclosures normally required by accounting principles generally accepted in the United States of America. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Form

10

-K for the year ended

June 30, 2018.

The results of operations for the interim period disclosed herein are

not

necessarily indicative of the results that

may

be expected for a full year.

The consolidated financial statements include the accounts of the Corporation and the Bank. All significant inter-company transactions and accounts have been eliminated in consolidation.

Segment Information:

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

one

segment, banking.

Reclassifications:

Certain items in prior financial statements have been reclassified to conform to the current presentation. Any reclassifications had

no

impact on prior year net income or shareholders’ equity.

Recently Issued Accounting Pronouncements

Not

Yet Effective:

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. generally accepted accounting principles, 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 in this guidance, that are SEC filers for fiscal years and for interim periods within 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

February 2016,

FASB issued ASU

2016

-

02,

Leases (Topic

842

)

. This ASU will require all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures will be required so that users can understand more about the nature of an entity’s leasing activities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after

December 15, 2018.

Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on the Corporation’s consolidated financial statements and expects to recognize an increase in other assets and other liabilities for the rights and obligations created by leasing of branch offices. Management also expects minimal impact in the income statement with respect to occupancy expense related to leases.

XML

Note 2 - Securities

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

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

Note

2

– Securities

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2018
Obligations of U.S. government-sponsored entities and agencies	$	16,320	$	—	$	(481	)	$	15,839
Obligations of state and political subdivisions		55,795		237		(974	)		55,058
U.S. Government-sponsored mortgage-backed securities–residential		62,011		—		(2,084	)		59,927
U.S. Government-sponsored mortgage-backed securities– commercial		1,425		—		(17	)		1,408
U.S. Government-sponsored collateralized mortgage obligations– residential		5,666		—		(230	)		5,436
Total available-for-sale securities	$	141,217	$	237	$	(3,786	)	$	137,668

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
September 30, 2018
Obligations of state and political subdivisions	$	3,929	$	45	$	(9	)	$	3,965
Total held-to-maturity securities	$	3,929	$	45	$	(9	)	$	3,965

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 201 8
Obligations of U.S. government-sponsored entities and agencies	$	16,488	$	6	$	(372	)	$	16,122
Obligations of state and political subdivisions		56,964		339		(713	)		56,590
U.S. Government-sponsored mortgage-backed securities – residential		65,062		6		(1,660	)		63,408
U.S. Government-sponsored mortgage-backed securities – commercial		1,432		—		(17	)		1,415
U.S. Government-sponsored collateralized mortgage obligations - residential		5,973		9		(216	)		5,766
Pooled trust preferred security		178		549		—			727
Total available-for-sale securities	$	146,097	$	909	$	(2,978	)	$	144,028

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 201 8
Obligations of state and political subdivisions	$	4,024	$	24	$	—	$	4,048
Total held-to-maturity securities	$	4,024	$	24	$	—	$	4,048

Proceeds from the sale of available-for-sale securities were as follows:

	Three Months Ended September 30,
	2018		2017
Proceeds from sales	$	2,573	$	1,586
Gross realized gains		593		39
Gross realized losses		6		1

The income tax provision related to the net realized gains amounted to

$124

for the

three

months ended

September 30, 2018.

The income tax provision related to the net realized gains amounted to

$13

for the

three

months ended

September 30, 2017.

The amortized cost and fair values of debt securities at

September 30, 2018,

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 are shown separately.

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,824	$	1,827
Due after one year through five years		19,435		19,201
Due after five years through ten years		27,499		27,112
Due after ten years		23,357		22,757
Total		72,115		70,897
U.S. Government-sponsored mortgage-backed and related securities		69,102		66,771
Total available-for-sale securities	$	141,217	$	137,668
Held-to-Maturity
Due after five years through ten years		527		521
Due after ten years		3,402		3,444
Total held-to-maturity securities	$	3,929	$	3,965

The following table summarizes the securities with unrealized losses at

September 30, 2018

and

June 30, 2018,

aggregated by investment category and length of time that 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
September 30 , 2018
Obligations of US government-sponsored entities and agencies	$	12,248	$	(282	)	$	3,591	$	(199	)	$	15,839	$	(481	)
Obligations of states and political subdivisions		29,778		(467	)		9,744		(507	)		39,522		(974	)
Mortgage-backed securities – residential		23,084		(434	)		36,843		(1,650	)		59,927		(2,084	)
Mortgage-backed securities – commercial		—		—			1,408		(17	)		1,408		(17	)
Collateralized mortgage obligations – residential		900		(1	)		4,536		(229	)		5,436		(230	)
Total temporarily impaired	$	66,010	$	(1,184	)	$	56,122	$	(2,602	)	$	122,132	$	(3,786	)

	Less than 12 Months					12 Months or more				Total
Held-to-maturity	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
September 30, 2018
Obligations of states and political subdivisions	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)
Total temporarily impaired	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)

	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, 201 8
Obligations of US government-sponsored entities and agencies	$	12,400	$	(224	)	$	2,747	$	(148	)	$	15,147	$	(372	)
Obligations of states and political subdivisions		26,775		(369	)		7,975		(344	)		34,750		(713	)
Mortgage-backed securities – residential		31,038		(581	)		29,716		(1,079	)		60,754		(1,660	)
Mortgage-backed securities – commercial		1,415		(17	)		—		—			1,415		(17	)
Collateralized mortgage obligation – residential		—		—			4,821		(216	)		4,821		(216	)
Total temporarily impaired	$	71,628	$	(1,191	)	$	45,259	$	(1,787	)	$	116,887	$	(2,978	)

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.

The unrealized losses within the securities portfolio as of

September 30, 2018

have

not

been recognized into income because the decline in fair value is

not

attributed to credit quality and management does

not

intend to sell, and it is

not

likely that management will be required to sell, the securities prior to their anticipated recovery. The decline in fair value within the securities portfolio is largely due to changes in interest rates and the fair value is expected to recover as the securities approach maturity. The mortgage-backed securities and collateralized mortgage obligations were primarily issued by Fannie Mae, Freddie Mac and Ginnie Mae, institutions which the government has affirmed its commitment to support. The Corporation does

not

own any private label mortgage-backed securities.

XML

Note 3 - Loans

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

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

Note

3

– Loans

Major classifications of loans were as follows:

	September 30, 2018			June 30, 2018
Commercial	$	62,242		$	60,995
Commercial real estate:
Construction		4,568			5,394
Other		191,096			183,383
1 – 4 Family residential real estate:
Owner occupied		49,573			47,433
Non-owner occupied		14,775			15,516
Construction		1,825			1,171
Consumer		4,856			4,873
Subtotal		328,935			318,765
Net Deferred loan fees and costs		(253	)		(256	)
Allowance for loan losses		(3,538	)		(3,422	)
Net Loans	$	325,144		$	315,087

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

three

months ended

September 30, 2018:

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	586	$	2,277	$	499	$	60		$	3,422
Provision for loan losses		16		100		5		(6	)		115
Loans charged-off		—		—		—		(7	)		(7	)
Recoveries		—		1		3		4			8
Total ending allowance balance	$	602	$	2,378	$	507	$	51		$	3,538

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

three

months ended

September 30, 2017:

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	518	$	2,038	$	473	$	57		$	3,086
Provision for loan losses		52		25		—		13			90
Loans charged-off		—		—		—		(3	)		(3	)
Recoveries		2		18		—		1			21
Total ending allowance balance	$	572	$	2,081	$	473	$	68		$	3,194

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

September 30, 2018.

Included in the recorded investment in loans is

$859

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	$	—	$	29	$	—	$	—	$	29
Collectively evaluated for impairment		602		2,349		507		51		3,509
Total ending allowance balance	$	602	$	2,378	$	507	$	51	$	3,538
Recorded investment in loans:
Loans individually evaluated for impairment	$	87	$	1,606	$	388	$	—	$	2,081
Loans collectively evaluated for impairment		62,238		194,132		66,229		4,861		327,460
Total ending loans balance	$	62,325	$	195,738	$	66,617	$	4,861	$	329,541

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, 2018.

Included in the recorded investment in loans is

$732

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	$	—	$	29	$	—	$	—	$	29
Collectively evaluated for impairment		586		2,248		499		60		3,393
Total ending allowance balance	$	586	$	2,277	$	499	$	60	$	3,422
Recorded investment in loans:
Loans individually evaluated for impairment	$	100	$	1,562	$	398	$	—	$	2,060
Loans collectively evaluated for impairment		60,979		187,191		64,135		4,876		317,181
Total ending loans balance	$	61,079	$	188,753	$	64,533	$	4,876	$	319,241

The following table presents information related to unpaid principal balance, recorded investment and interest income associated with loans individually evaluated for impairment by class of loans as of

September 30, 2018

and for the

three

months ended

September 30, 2018:

(Dollars in thousands, except per share amounts)

	As of September 30, 2018						Three Months ended September 30, 2018
	Unpaid				Allowance for Loan		Average		Interest		Cash Basis
	Principal		Recorded		Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	87	$	87	$	—	$	71	$	1	$	1
Commercial real estate:
Other		1,499		1,376		—		1,369		11		11
1-4 Family residential real estate:
Owner occupied		129		99		—		99		—		—
Non-owner occupied		309		289		—		292		—		—
With an allowance recorded:
Commercial real estate:
Other		228		230		29		231		3		3
Total	$	2,252	$	2,081	$	29	$	2,062	$	15	$	15

The following table presents information related to unpaid principal balance, recorded investment and interest income associated with loans individually evaluated for impairment by class of loans as of

June 30, 2018

and for the

three

months ended

September 30, 2017:

	As of June 30, 2018						Three Months ended September 30, 2017
	Unpaid				Allowance for Loan		Average		Interest		Cash Basis
	Principal		Recorded		Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	100	$	100	$	—	$	114	$	2	$	2
Commercial real estate:
Other		1,330		1,330		—		1,053		10		10
1-4 Family residential real estate:
Owner occupied		101		101		—		102		—		—
Non-owner occupied		297		297		—		327		—		—
With an allowance recorded:
Commercial real estate:
Other		231		232		29		343		—		—
Total	$	2,059	$	2,060	$	29	$	1,939	$	12	$	12

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

September 30, 2018

and

June 30, 2018:

	September 30, 2018				June 30, 2018
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial	$	—	$	—	$	—	$	—
Commercial real estate:
Other		675		—		702		—
1 – 4 Family residential:
Owner occupied		89		1		90		—
Non-owner occupied		289		—		298		—
Total	$	1,053	$	1	$	1,090	$	—

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

September 30, 2018

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	$	—	$	—	$	—	$	—	$	62,325	$	62,325
Commercial real estate:
Construction		—		—		—		—		4,555		4,555
Other		15		—		219		234		190,949		191,183
1-4 Family residential:
Owner occupied		49		—		81		130		49,875		50,005
Non-owner occupied		—		—		—		—		14,775		14,775
Construction		—		—		—		—		1,837		1,837
Consumer		11		3		—		14		4,847		4,861
Total	$	75	$	3	$	300	$	378	$	329,163	$	329,541

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

$24

in the

30

–

59

days category,

$299

in the

90

days or greater category and

$730

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, 2018

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	$	—	$	—	$	—	$	—	$	61,079	$	61,079
Commercial real estate:
Construction		—		—		—		—		5,386		5,386
Other		238		—		—		238		183,129		183,367
1-4 Family residential:
Owner occupied		11		—		80		91		47,738		47,829
Non-owner occupied		—		—		—		—		15,514		15,514
Construction		—		—		—		—		1,190		1,190
Consumer		7		—		—		7		4,869		4,876
Total	$	256	$	—	$	80	$	336	$	318,905	$	319,241

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

$249

in the

30

-

59

days,

$80

in the

90

days or greater category and

$761

in the loans

not

past due category.

Troubled Debt Restructurings

(TDR)

:

The Corporation has certain loans that have been modified in order to maximize collection of loan balances. A modified loan is classified as a TDR if, for economic reasons, management grants a concession to the original terms and conditions of the loan to a borrower who is experiencing financial difficulties that it would

not

have otherwise considered.

At

September 30, 2018

and

June 30, 2018,

the Corporation had

$1,318

and

$1,269,

respectively, of loans classified as TDRs which are included in impaired loans above. As of

September 30, 2018

and

June 30, 2018,

the Corporation had committed to lend an additional

$38

and

$174,

respectively, to customers with outstanding loans that were classified as troubled debt restructurings. At

September 30, 2018

and

June 30, 2018,

the Corporation had

$29

of specific reserves allocated to these loans.

During the

three

-month periods ended

September 30, 2018

and

2017,

there were

no

loan modifications completed that were classified as troubled debt restructurings. There were

no

charge offs from troubled debt restructurings that were completed during the

three

-month periods ended

September 30, 2018

and

2017.

There were

no

loans classified as troubled debt restructurings for which there was a payment default within

12

months following the modification during the

three

-month periods ended

September 30, 2018

and

2017.

A loan is considered in payment default once it is

90

days contractually past due under the modified terms.

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, current economic trends and other relevant information. 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. Management monitors the loans on an ongoing basis for any changes in the borrower’s ability to service their debt and affirms the risk ratings for the loans and leases in their respective portfolio on an annual 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 are disclosed in the previous table within this footnote. Based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans was as follows:

	As of September 30, 2018
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	60,364	$	428	$	1,080	$	—	$	453
Commercial real estate:
Construction		4,555		—		—		—		—
Other		180,579		6,793		2,177		675		959
1-4 Family residential real estate:
Owner occupied		2,375		95		27		9		47,499
Non-owner occupied		13,438		192		410		289		446
Construction		695		—		—		—		1,142
Consumer		80		—		—		—		4,781
Total	$	262,086	$	7,508	$	3,694	$	973	$	55,280

	As of June 30, 2018
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	59,214	$	288	$	1,162	$	—	$	415
Commercial real estate:
Construction		5,386		—		—		—		—
Other		172,471		7,061		1,878		702		1,255
1-4 Family residential real estate:
Owner occupied		2,577		—		27		11		45,214
Non-owner occupied		14,025		195		417		298		579
Construction		8		—		—		—		1,182
Consumer		93		—		—		—		4,783
Total	$	253,774	$	7,544	$	3,484	$	1,011	$	53,428

XML

Note 4 - Fair Value

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

4

- 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 September 30, 2018 Using
	Balance at September 30, 2018		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	15,839	$	—	$	15,839	$	—
Obligations of states and political subdivisions		55,058		—		55,058		—
Mortgage-backed securities – residential		59,927		—		59,927		—
Mortgage-backed securities – commercial		1,408		—		1,408		—
Collateralized mortgage obligations - residential		5,436		—		5,436		—

			Fair Value Measurements at June 30, 2018 Using
	Balance at June 30, 2018		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	16,122	$	—	$	16,122	$	—
Obligations of states and political subdivisions		56,590		—		56,590		—
Mortgage-backed securities - residential		63,408		—		63,408		—
Mortgage-backed securities - commercial		1,415		—		1,415		—
Collateralized mortgage obligations - residential		5,766		—		5,766		—
Pooled trust preferred security		727		—		727		—

There were

no

transfers between Level

1

and Level

2

during the

three

-month periods ended

September 30, 2018

or

2017.

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.

There were

no

financial assets measured at fair value on a non-recurring basis at

September 30, 2018

and

June 30, 2018. 

There was

no

impact to the provision for loan losses for the

three

months ended

September 30, 2018.

The resulting impact to the provision for loan losses was a decrease of

$17

being recorded for the

three

months ended

September 30, 2017.

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:

	September 30 , 2018				June 30, 201 8
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	10,785	$	10,785	$	7,772	$	7,772
Level 2 inputs:
Certificates of deposits in other financial institutions		2,973		2,966		2,973		2,976
Loans held for sale		2,663		2,718		1,448		1,474
Accrued interest receivable		1,648		1,648		1,404		1,404
Level 3 inputs:
Securities held-to-maturity		3,929		3,965		4,024		4,048
Loans, net		325,144		319,824		315,087		311,642
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		361,490		361,490		351,422		351,422
Time deposits		79,049		78,665		78,541		78,332
Short-term borrowings		2,902		2,902		13,367		13,367
Federal Home Loan Bank advances		19,739		19,274		11,756		11,146
Accrued interest payable		88		88		68		68

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:

Effective for the current period ended

September 30, 2018,

the fair value of loans were determined using an exit price methodology as prescribed by ASU

2016

-

01.

The exit price estimation of fair value is based on the future value of expected cash flows. The projected cash flows are based on the contractual terms of the loans, adjusted for prepayments and use of a current market rate based on the relative credit risk of the loan. In addition, an incremental liquidity discount is applied resulting in a Level

3

classification. In comparison, loan fair values as of

June 30, 2018

were estimated based on an entrance price methodology. As a result, the fair value adjustments as of

September 30, 2018

and

June 30, 2018

are

not

comparable.

Securities held-to-maturity:

The held-to-maturity securities are general obligation and revenue bonds made to local municipalities. The fair values of these securities are estimated 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

September 30, 2018

and

June 30, 2018,

for deposits of similar remaining maturities, resulting in a Level

2

classification. Estimated fair value does

not

include the benefit that results 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

September 30, 2018

and

June 30, 2018

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.

XML

Note 5 - Earnings Per Share

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

5

– 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. There were

no

equity instruments that were anti-dilutive for the

three

-months ended

September 30, 2018. 

There were

2,062

shares of restricted stock that were anti-dilutive for the

three

-months ended

September 30, 2017.

The following table details the calculation of basic and diluted earnings per share:

	For the Three Months Ended September 30,
	2018		201 7
Basic:
Net income available to common shareholders	$	1,673	$	929
Weighted average common shares outstanding		2,729,103		2,724,997
Basic income per share	$	0.61	$	0.34
Diluted:
Net income available to common shareholders	$	1,673	$	929
Weighted average common shares outstanding		2,729,103		2,724,997
Dilutive effect of restricted stock		68		—
Total common shares and dilutive potential common shares		2,729,171		2,724,997
Dilutive income per share	$	0.61	$	0.34

XML

Note 6 - Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

Note

6

–Accumulated Other Comprehensive Income

(Loss)

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

three

-month periods ended

September 30, 2018

and

2017,

were as follows:

	Pretax			Tax Effect			After-tax			Affected Line Item in Consolidated Statements of Income
Balance as of June 30, 2018	$	(2,069	)	$	434		$	(1,635	)
Unrealized holding loss on available-for-sale securities arising during the period		(893	)		188			(705	)
Amounts reclassified from accumulated other comprehensive income		(587	)		124			(463	)	(a)(b)
Net current period other comprehensive loss		(1,480	)		312			(1,168	)
Balance after reclassification as of September 30, 2018	$	(3,549	)	$	746		$	(2,803	)
Balance as of June 30, 2017	$	675		$	(230	)	$	445
Unrealized holding gains on available-for-sale securities arising during the period		104			(35	)		69
Amounts reclassified from accumulated other comprehensive income		(38	)		13			(25	)	(a)(b)
Net current period other comprehensive income		66			(22	)		44
Balance as of September 30, 2017	$	741		$	(252	)	$	489

(a) Securities (gains) losses, net

(b) Income tax expense

XML

Note 7 - Revenue Recognition

3 Months Ended

Sep. 30, 2018

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note

7

–

Revenue Recognition

On

July 1, 2018,

the Corporation adopted ASU

2014

-

09

"Revenue from Contracts with Customers" (Topic

606

) and all subsequent ASUs that modified Topic

606.

Interest income, net securities gains (losses), gains from the sale of mortgage loans and bank-owned life insurance are

not

included within the scope of Topic

606.

For the revenue streams in the scope of Topic

606,

service charges on deposits and electronic banking fees, there are

no

significant judgments related to the amount and timing of revenue recognition. All of the Corporation's revenue from contracts with customers is recognized within noninterest income.

Service charges on deposit

accounts

:

The Corporation earns fees from its deposit customers for transaction-based, account maintenance and overdraft services. Transaction-based fees, which include services such as stop payment charges, statement rendering and other fees, are recognized at the time the transaction is executed as that is the point in time the Corporation fulfills the customer's request. Account maintenance fees, which relate primarily to monthly maintenance, are earned over the course of a month, representing the period over which the Corporation satisfies the performance obligation. Overdraft fees are recognized at the point in time that the overdraft occurs. Service charges on deposits are withdrawn from the customer's account balance.

Interchange income

:

The Corporation earns interchange income from cardholder transactions conducted through the various payment networks. Interchange income from cardholder transactions represent a percentage of the underlying transaction value and are recognized daily, concurrently with the transaction processing services provided to the cardholder. The gross amount of these fees is processed through noninterest income.

The following table presents the Corporation's sources of noninterest income for the

three

months ended

September 30, 2018

and

2017.

	For the three months ended September 30,
	2018		2017
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	316	$	308
Debit card interchange income		358		323
Other income		165		135
Noninterest income (in scope of Topic 606)		839		766
Noninterest income (out-of-scope of Topic 606)		656		106
Total noninterest income	$	1,495	$	872

XML

Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2018

Accounting Policies [Abstract]

Nature of Operations [Policy Text Block]

Nature of Operations:

Consumers Bancorp, Inc. (the Corporation) is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, Consumers National Bank (the Bank), 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.

Basis of Accounting, Policy [Policy Text Block]

Basis of Presentation

: The consolidated financial statements for interim periods are unaudited and reflect all adjustments (consisting of only normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the financial position and results of operations and cash flows for the periods presented. The unaudited financial statements are presented in accordance with the requirements of Form

10

-Q and do

not

include all disclosures normally required by accounting principles generally accepted in the United States of America. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Form

10

-K for the year ended

June 30, 2018.

The results of operations for the interim period disclosed herein are

not

necessarily indicative of the results that

may

be expected for a full year.

The consolidated financial statements include the accounts of the Corporation and the Bank. All significant inter-company transactions and accounts have been eliminated in consolidation.

Segment Reporting, Policy [Policy Text Block]

Segment Information:

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

one

segment, banking.

Reclassification, Policy [Policy Text Block]

Reclassifications:

Certain items in prior financial statements have been reclassified to conform to the current presentation. Any 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

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. generally accepted accounting principles, 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 in this guidance, that are SEC filers for fiscal years and for interim periods within 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

February 2016,

FASB issued ASU

2016

-

02,

Leases (Topic

842

)

. This ASU will require all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures will be required so that users can understand more about the nature of an entity’s leasing activities. The new guidance is effective for annual reporting periods and interim reporting periods within those annual periods, beginning after

December 15, 2018.

Early adoption is permitted. Management is currently evaluating the impact of the adoption of this guidance on the Corporation’s consolidated financial statements and expects to recognize an increase in other assets and other liabilities for the rights and obligations created by leasing of branch offices. Management also expects minimal impact in the income statement with respect to occupancy expense related to leases.

XML

Note 2 - Securities (Tables)

3 Months Ended

Sep. 30, 2018

Notes Tables

Marketable Securities [Table Text Block]

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2018
Obligations of U.S. government-sponsored entities and agencies	$	16,320	$	—	$	(481	)	$	15,839
Obligations of state and political subdivisions		55,795		237		(974	)		55,058
U.S. Government-sponsored mortgage-backed securities–residential		62,011		—		(2,084	)		59,927
U.S. Government-sponsored mortgage-backed securities– commercial		1,425		—		(17	)		1,408
U.S. Government-sponsored collateralized mortgage obligations– residential		5,666		—		(230	)		5,436
Total available-for-sale securities	$	141,217	$	237	$	(3,786	)	$	137,668

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
September 30, 2018
Obligations of state and political subdivisions	$	3,929	$	45	$	(9	)	$	3,965
Total held-to-maturity securities	$	3,929	$	45	$	(9	)	$	3,965

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 201 8
Obligations of U.S. government-sponsored entities and agencies	$	16,488	$	6	$	(372	)	$	16,122
Obligations of state and political subdivisions		56,964		339		(713	)		56,590
U.S. Government-sponsored mortgage-backed securities – residential		65,062		6		(1,660	)		63,408
U.S. Government-sponsored mortgage-backed securities – commercial		1,432		—		(17	)		1,415
U.S. Government-sponsored collateralized mortgage obligations - residential		5,973		9		(216	)		5,766
Pooled trust preferred security		178		549		—			727
Total available-for-sale securities	$	146,097	$	909	$	(2,978	)	$	144,028

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 201 8
Obligations of state and political subdivisions	$	4,024	$	24	$	—	$	4,048
Total held-to-maturity securities	$	4,024	$	24	$	—	$	4,048

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

	Three Months Ended September 30,
	2018		2017
Proceeds from sales	$	2,573	$	1,586
Gross realized gains		593		39
Gross realized losses		6		1

Investments Classified by Contractual Maturity Date [Table Text Block]

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,824	$	1,827
Due after one year through five years		19,435		19,201
Due after five years through ten years		27,499		27,112
Due after ten years		23,357		22,757
Total		72,115		70,897
U.S. Government-sponsored mortgage-backed and related securities		69,102		66,771
Total available-for-sale securities	$	141,217	$	137,668
Held-to-Maturity
Due after five years through ten years		527		521
Due after ten years		3,402		3,444
Total held-to-maturity securities	$	3,929	$	3,965

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
September 30 , 2018
Obligations of US government-sponsored entities and agencies	$	12,248	$	(282	)	$	3,591	$	(199	)	$	15,839	$	(481	)
Obligations of states and political subdivisions		29,778		(467	)		9,744		(507	)		39,522		(974	)
Mortgage-backed securities – residential		23,084		(434	)		36,843		(1,650	)		59,927		(2,084	)
Mortgage-backed securities – commercial		—		—			1,408		(17	)		1,408		(17	)
Collateralized mortgage obligations – residential		900		(1	)		4,536		(229	)		5,436		(230	)
Total temporarily impaired	$	66,010	$	(1,184	)	$	56,122	$	(2,602	)	$	122,132	$	(3,786	)

	Less than 12 Months					12 Months or more				Total
Held-to-maturity	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
September 30, 2018
Obligations of states and political subdivisions	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)
Total temporarily impaired	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)

	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, 201 8
Obligations of US government-sponsored entities and agencies	$	12,400	$	(224	)	$	2,747	$	(148	)	$	15,147	$	(372	)
Obligations of states and political subdivisions		26,775		(369	)		7,975		(344	)		34,750		(713	)
Mortgage-backed securities – residential		31,038		(581	)		29,716		(1,079	)		60,754		(1,660	)
Mortgage-backed securities – commercial		1,415		(17	)		—		—			1,415		(17	)
Collateralized mortgage obligation – residential		—		—			4,821		(216	)		4,821		(216	)
Total temporarily impaired	$	71,628	$	(1,191	)	$	45,259	$	(1,787	)	$	116,887	$	(2,978	)

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Note 3 - Loans (Tables)

3 Months Ended

Sep. 30, 2018

Notes Tables

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

	September 30, 2018			June 30, 2018
Commercial	$	62,242		$	60,995
Commercial real estate:
Construction		4,568			5,394
Other		191,096			183,383
1 – 4 Family residential real estate:
Owner occupied		49,573			47,433
Non-owner occupied		14,775			15,516
Construction		1,825			1,171
Consumer		4,856			4,873
Subtotal		328,935			318,765
Net Deferred loan fees and costs		(253	)		(256	)
Allowance for loan losses		(3,538	)		(3,422	)
Net Loans	$	325,144		$	315,087

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	$	586	$	2,277	$	499	$	60		$	3,422
Provision for loan losses		16		100		5		(6	)		115
Loans charged-off		—		—		—		(7	)		(7	)
Recoveries		—		1		3		4			8
Total ending allowance balance	$	602	$	2,378	$	507	$	51		$	3,538

					1-4 Family
			Commercial		Residential
			Real		Real
	Commercial		Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	518	$	2,038	$	473	$	57		$	3,086
Provision for loan losses		52		25		—		13			90
Loans charged-off		—		—		—		(3	)		(3	)
Recoveries		2		18		—		1			21
Total ending allowance balance	$	572	$	2,081	$	473	$	68		$	3,194

					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	$	—	$	29	$	—	$	—	$	29
Collectively evaluated for impairment		602		2,349		507		51		3,509
Total ending allowance balance	$	602	$	2,378	$	507	$	51	$	3,538
Recorded investment in loans:
Loans individually evaluated for impairment	$	87	$	1,606	$	388	$	—	$	2,081
Loans collectively evaluated for impairment		62,238		194,132		66,229		4,861		327,460
Total ending loans balance	$	62,325	$	195,738	$	66,617	$	4,861	$	329,541

					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	$	—	$	29	$	—	$	—	$	29
Collectively evaluated for impairment		586		2,248		499		60		3,393
Total ending allowance balance	$	586	$	2,277	$	499	$	60	$	3,422
Recorded investment in loans:
Loans individually evaluated for impairment	$	100	$	1,562	$	398	$	—	$	2,060
Loans collectively evaluated for impairment		60,979		187,191		64,135		4,876		317,181
Total ending loans balance	$	61,079	$	188,753	$	64,533	$	4,876	$	319,241

Impaired Financing Receivables [Table Text Block]

	As of September 30, 2018						Three Months ended September 30, 2018
	Unpaid				Allowance for Loan		Average		Interest		Cash Basis
	Principal		Recorded		Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	87	$	87	$	—	$	71	$	1	$	1
Commercial real estate:
Other		1,499		1,376		—		1,369		11		11
1-4 Family residential real estate:
Owner occupied		129		99		—		99		—		—
Non-owner occupied		309		289		—		292		—		—
With an allowance recorded:
Commercial real estate:
Other		228		230		29		231		3		3
Total	$	2,252	$	2,081	$	29	$	2,062	$	15	$	15

	As of June 30, 2018						Three Months ended September 30, 2017
	Unpaid				Allowance for Loan		Average		Interest		Cash Basis
	Principal		Recorded		Losses		Recorded		Income		Interest
	Balance		Investment		Allocated		Investment		Recognized		Recognized
With no related allowance recorded:
Commercial	$	100	$	100	$	—	$	114	$	2	$	2
Commercial real estate:
Other		1,330		1,330		—		1,053		10		10
1-4 Family residential real estate:
Owner occupied		101		101		—		102		—		—
Non-owner occupied		297		297		—		327		—		—
With an allowance recorded:
Commercial real estate:
Other		231		232		29		343		—		—
Total	$	2,059	$	2,060	$	29	$	1,939	$	12	$	12

Past Due Financing Receivables [Table Text Block]

	September 30, 2018				June 30, 2018
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial	$	—	$	—	$	—	$	—
Commercial real estate:
Other		675		—		702		—
1 – 4 Family residential:
Owner occupied		89		1		90		—
Non-owner occupied		289		—		298		—
Total	$	1,053	$	1	$	1,090	$	—

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	—	$	—	$	—	$	—	$	62,325	$	62,325
Commercial real estate:
Construction		—		—		—		—		4,555		4,555
Other		15		—		219		234		190,949		191,183
1-4 Family residential:
Owner occupied		49		—		81		130		49,875		50,005
Non-owner occupied		—		—		—		—		14,775		14,775
Construction		—		—		—		—		1,837		1,837
Consumer		11		3		—		14		4,847		4,861
Total	$	75	$	3	$	300	$	378	$	329,163	$	329,541

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	—	$	—	$	—	$	—	$	61,079	$	61,079
Commercial real estate:
Construction		—		—		—		—		5,386		5,386
Other		238		—		—		238		183,129		183,367
1-4 Family residential:
Owner occupied		11		—		80		91		47,738		47,829
Non-owner occupied		—		—		—		—		15,514		15,514
Construction		—		—		—		—		1,190		1,190
Consumer		7		—		—		7		4,869		4,876
Total	$	256	$	—	$	80	$	336	$	318,905	$	319,241

Financing Receivable Credit Quality Indicators [Table Text Block]

	As of September 30, 2018
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	60,364	$	428	$	1,080	$	—	$	453
Commercial real estate:
Construction		4,555		—		—		—		—
Other		180,579		6,793		2,177		675		959
1-4 Family residential real estate:
Owner occupied		2,375		95		27		9		47,499
Non-owner occupied		13,438		192		410		289		446
Construction		695		—		—		—		1,142
Consumer		80		—		—		—		4,781
Total	$	262,086	$	7,508	$	3,694	$	973	$	55,280

	As of June 30, 2018
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	59,214	$	288	$	1,162	$	—	$	415
Commercial real estate:
Construction		5,386		—		—		—		—
Other		172,471		7,061		1,878		702		1,255
1-4 Family residential real estate:
Owner occupied		2,577		—		27		11		45,214
Non-owner occupied		14,025		195		417		298		579
Construction		8		—		—		—		1,182
Consumer		93		—		—		—		4,783
Total	$	253,774	$	7,544	$	3,484	$	1,011	$	53,428

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Note 4 - Fair Value (Tables)

3 Months Ended

Sep. 30, 2018

Notes Tables

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

			Fair Value Measurements at September 30, 2018 Using
	Balance at September 30, 2018		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	15,839	$	—	$	15,839	$	—
Obligations of states and political subdivisions		55,058		—		55,058		—
Mortgage-backed securities – residential		59,927		—		59,927		—
Mortgage-backed securities – commercial		1,408		—		1,408		—
Collateralized mortgage obligations - residential		5,436		—		5,436		—

			Fair Value Measurements at June 30, 2018 Using
	Balance at June 30, 2018		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	16,122	$	—	$	16,122	$	—
Obligations of states and political subdivisions		56,590		—		56,590		—
Mortgage-backed securities - residential		63,408		—		63,408		—
Mortgage-backed securities - commercial		1,415		—		1,415		—
Collateralized mortgage obligations - residential		5,766		—		5,766		—
Pooled trust preferred security		727		—		727		—

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

	September 30 , 2018				June 30, 201 8
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	10,785	$	10,785	$	7,772	$	7,772
Level 2 inputs:
Certificates of deposits in other financial institutions		2,973		2,966		2,973		2,976
Loans held for sale		2,663		2,718		1,448		1,474
Accrued interest receivable		1,648		1,648		1,404		1,404
Level 3 inputs:
Securities held-to-maturity		3,929		3,965		4,024		4,048
Loans, net		325,144		319,824		315,087		311,642
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		361,490		361,490		351,422		351,422
Time deposits		79,049		78,665		78,541		78,332
Short-term borrowings		2,902		2,902		13,367		13,367
Federal Home Loan Bank advances		19,739		19,274		11,756		11,146
Accrued interest payable		88		88		68		68

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Note 5 - Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2018

Notes Tables

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

	For the Three Months Ended September 30,
	2018		201 7
Basic:
Net income available to common shareholders	$	1,673	$	929
Weighted average common shares outstanding		2,729,103		2,724,997
Basic income per share	$	0.61	$	0.34
Diluted:
Net income available to common shareholders	$	1,673	$	929
Weighted average common shares outstanding		2,729,103		2,724,997
Dilutive effect of restricted stock		68		—
Total common shares and dilutive potential common shares		2,729,171		2,724,997
Dilutive income per share	$	0.61	$	0.34

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Note 6 - Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Sep. 30, 2018

Notes Tables

Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block]

	Pretax			Tax Effect			After-tax			Affected Line Item in Consolidated Statements of Income
Balance as of June 30, 2018	$	(2,069	)	$	434		$	(1,635	)
Unrealized holding loss on available-for-sale securities arising during the period		(893	)		188			(705	)
Amounts reclassified from accumulated other comprehensive income		(587	)		124			(463	)	(a)(b)
Net current period other comprehensive loss		(1,480	)		312			(1,168	)
Balance after reclassification as of September 30, 2018	$	(3,549	)	$	746		$	(2,803	)
Balance as of June 30, 2017	$	675		$	(230	)	$	445
Unrealized holding gains on available-for-sale securities arising during the period		104			(35	)		69
Amounts reclassified from accumulated other comprehensive income		(38	)		13			(25	)	(a)(b)
Net current period other comprehensive income		66			(22	)		44
Balance as of September 30, 2017	$	741		$	(252	)	$	489

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Note 7 - Revenue Recognition (Tables)

3 Months Ended

Sep. 30, 2018

Notes Tables

Disaggregation of Revenue [Table Text Block]

	For the three months ended September 30,
	2018		2017
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	316	$	308
Debit card interchange income		358		323
Other income		165		135
Noninterest income (in scope of Topic 606)		839		766
Noninterest income (out-of-scope of Topic 606)		656		106
Total noninterest income	$	1,495	$	872

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Note 1 - Summary of Significant Accounting Policies (Details Textual)	3 Months Ended
	Sep. 30, 2018
Number of Reportable Segments	1

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Note 2 - Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Available-for-sale Securities Income Tax Provision on Gross Realized Gains	$ 124	$ 13

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Note 2 - Securities - Amortized Cost and Fair Value of Securities Available-for-sale and Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Available-for-sale securities, amortized cost	$ 141,217	$ 146,097
Available-for-sale securities, gross unrealized gains	237	909
Available-for-sale securities, gross unrealized losses	(3,786)	(2,978)
Available-for-sale securities, fair value	137,668	144,028
Held-to-maturity, amortized cost	3,929	4,024
Held-to-maturity, gross unrecognized gains	45	24
Held-to-maturity, gross unrecognized losses	(9)
Held-to-maturity, fair value	3,965	4,048
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale securities, amortized cost	16,320	16,488
Available-for-sale securities, gross unrealized gains		6
Available-for-sale securities, gross unrealized losses	(481)	(372)
Available-for-sale securities, fair value	15,839	16,122
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale securities, amortized cost	55,795	56,964
Available-for-sale securities, gross unrealized gains	237	339
Available-for-sale securities, gross unrealized losses	(974)	(713)
Available-for-sale securities, fair value	55,058	56,590
Held-to-maturity, amortized cost	3,929	4,024
Held-to-maturity, gross unrecognized gains	45	24
Held-to-maturity, gross unrecognized losses	(9)
Held-to-maturity, fair value	3,965	4,048
Residential Mortgage Backed Securities [Member]
Available-for-sale securities, amortized cost	62,011	65,062
Available-for-sale securities, gross unrealized gains		6
Available-for-sale securities, gross unrealized losses	(2,084)	(1,660)
Available-for-sale securities, fair value	59,927	63,408
Commercial Mortgage Backed Securities [Member]
Available-for-sale securities, amortized cost	1,425	1,432
Available-for-sale securities, gross unrealized gains
Available-for-sale securities, gross unrealized losses	(17)	(17)
Available-for-sale securities, fair value	1,408	1,415
Collateralized Mortgage Obligations [Member]
Available-for-sale securities, amortized cost	5,666	5,973
Available-for-sale securities, gross unrealized gains		9
Available-for-sale securities, gross unrealized losses	(230)	(216)
Available-for-sale securities, fair value	$ 5,436	5,766
Pooled Trust Preferred Securities Subject to Mandatory Redemption [Member]
Available-for-sale securities, amortized cost		178
Available-for-sale securities, gross unrealized gains		549
Available-for-sale securities, gross unrealized losses
Available-for-sale securities, fair value		$ 727

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Note 2 - Securities - Proceeds From Sales and Calls of Available-for-sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Proceeds from sales	$ 2,573	$ 1,586
Gross realized gains	593	39
Gross realized losses	$ 6	$ 1

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Note 2 - Securities - Amortized Cost and Fair Values of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 1,824
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	1,827
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	19,435
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	19,201
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	27,499
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	27,112
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis	23,357
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	22,757
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis	72,115
Available-for-sale Securities, Debt Maturities, Single Maturity Date	70,897
Available-for-sale Debt Securities, Amortized Cost Basis	141,217	$ 146,097
Securities, available-for-sale	137,668	144,028
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	527
Held-to-maturity Securities, Debt Maturities, Year Six Through Ten, Fair Value	521
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	3,402
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	3,444
Held-to-maturity Securities	3,929	4,024
Held-to-maturity Securities, Fair Value	3,965	$ 4,048
U.S. Government-sponsored Mortgage-backed and Related Securities [Member]
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	69,102
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	$ 66,771

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Note 2 - Securities - Securities With Unrealized and Unrecognized Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 66,010	$ 71,628
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(1,184)	(1,191)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	56,122	45,259
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(2,602)	(1,787)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	122,132	116,887
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(3,786)	(2,978)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	3,053
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(9)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	3,053
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss	(9)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	1,184	1,191
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	12,248	12,400
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(282)	(224)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	3,591	2,747
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(199)	(148)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	15,839	15,147
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(481)	(372)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	282	224
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	29,778	26,775
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(467)	(369)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	9,744	7,975
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(507)	(344)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	39,522	34,750
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(974)	(713)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	3,053
Held-to-maturity Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(9)
Held-to-maturity Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
Held-to-maturity Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss
Held-to-maturity Securities, Continuous Unrealized Loss Position, Fair Value	3,053
Held-to-maturity Securities, Continuous Unrealized Loss Position, Aggregate Loss	(9)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	467	369
Residential Mortgage Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	23,084	31,038
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(434)	(581)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	36,843	29,716
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(1,650)	(1,079)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	59,927	60,754
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(2,084)	(1,660)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	434	581
Commercial Mortgage Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value		1,415
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss		(17)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	1,408
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(17)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,408	1,415
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(17)	(17)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss		17
Collateralized Debt Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	900
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(1)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	4,536	4,821
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(229)	(216)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	5,436	4,821
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(230)	(216)
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	$ 1

XML

Note 3 - Loans (Details Textual) xbrli-pure in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)	Jun. 30, 2018 USD ($)
Interest Receivable	$ 859		$ 732
Financing Receivable, Recorded Investment, Nonaccrual Status	1,053		1,090
Financing Receivable, Modifications, Recorded Investment	1,318		1,269
Loans and Leases Receivable, Impaired, Commitment to Lend	38		174
Troubled Debt Restructuring, Debtor, Subsequent Periods, Contingent Payments, Amount, Total	$ 29		29
Financing Receivable, Modifications, Number of Contracts	0	0
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	$ 0	$ 0
Financing Receivable, Modifications, Subsequent Default, Number of Contracts	0	0
Threshold Amount of Loans Outstanding to Perform Credit Analysis	$ 100
Non-accrual Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	730		761
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	24		249
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 299		$ 80

XML

Note 3 - Loans - Major Classifications (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018	Sep. 30, 2017	Jun. 30, 2017
Loans Receivable, Gross	$ 328,935	$ 318,765
Net Deferred loan fees and costs	(253)	(256)
Allowance for loan losses	(3,538)	(3,422)	$ (3,194)	$ (3,086)
Net Loans	325,144	315,087
Commercial Portfolio Segment [Member]
Loans Receivable, Gross	62,242	60,995
Allowance for loan losses	(602)	(586)	(572)	(518)
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses	(2,378)	(2,277)	(2,081)	(2,038)
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans Receivable, Gross	4,568	5,394
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member]
Loans Receivable, Gross	191,096	183,383
Residential Portfolio Segment [Member]
Allowance for loan losses	(507)	(499)	(473)	(473)
Residential Portfolio Segment [Member] | Construction Loans [Member]
Loans Receivable, Gross	1,825	1,171
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member]
Loans Receivable, Gross	49,573	47,433
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Loans Receivable, Gross	14,775	15,516
Consumer Portfolio Segment [Member]
Loans Receivable, Gross	4,856	4,873
Allowance for loan losses	$ (51)	$ (60)	$ (68)	$ (57)

XML

Note 3 - Loans - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Sep. 30, 2018	Jun. 30, 2018
Beginning balance	$ 3,422	$ 3,086
Provision for loan losses	115	90
Loans charged-off	(7)	(3)
Recoveries	8	21
Total ending allowance balance	3,538	3,194
Individually evaluated for impairment			$ 29	$ 29
Collectively evaluated for impairment			3,509	3,393
Total ending allowance balance	3,538	3,086	3,538	3,422
Loans individually evaluated for impairment			2,081	2,060
Loans collectively evaluated for impairment			327,460	317,181
Total ending loans balance			329,541	319,241
Commercial Portfolio Segment [Member]
Beginning balance	586	518
Provision for loan losses	16	52
Loans charged-off
Recoveries		2
Total ending allowance balance	602	572
Individually evaluated for impairment
Collectively evaluated for impairment			602	586
Total ending allowance balance	586	518	602	586
Loans individually evaluated for impairment			87	100
Loans collectively evaluated for impairment			62,238	60,979
Total ending loans balance			62,325	61,079
Commercial Real Estate Portfolio Segment [Member]
Beginning balance	2,277	2,038
Provision for loan losses	100	25
Loans charged-off
Recoveries	1	18
Total ending allowance balance	2,378	2,081
Individually evaluated for impairment			29	29
Collectively evaluated for impairment			2,349	2,248
Total ending allowance balance	2,277	2,038	2,378	2,277
Loans individually evaluated for impairment			1,606	1,562
Loans collectively evaluated for impairment			194,132	187,191
Total ending loans balance			195,738	188,753
Residential Portfolio Segment [Member]
Beginning balance	499	473
Provision for loan losses	5
Loans charged-off
Recoveries	3
Total ending allowance balance	507	473
Individually evaluated for impairment
Collectively evaluated for impairment			507	499
Total ending allowance balance	499	473	507	499
Loans individually evaluated for impairment			388	398
Loans collectively evaluated for impairment			66,229	64,135
Total ending loans balance			66,617	64,533
Consumer Portfolio Segment [Member]
Beginning balance	60	57
Provision for loan losses	(6)	13
Loans charged-off	(7)	(3)
Recoveries	4	1
Total ending allowance balance	51	68
Individually evaluated for impairment
Collectively evaluated for impairment			51	60
Total ending allowance balance	$ 60	$ 57	51	60
Loans individually evaluated for impairment
Loans collectively evaluated for impairment			4,861	4,876
Total ending loans balance			$ 4,861	$ 4,876

XML

Note 3 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Impaired Financing Receivable, Related Allowance	$ 29		$ 29
Impaired Financing Receivable, Unpaid Principal Balance	2,252		2,059
Impaired Financing Receivable, Recorded Investment	2,081		2,060
Impaired Financing Receivable, Average Recorded Investment	2,062	$ 1,939
Impaired Financing Receivable, Interest Income, Accrual Method	15	12
Impaired Financing Receivable, Interest Income, Cash Basis Method	15	12
Commercial Portfolio Segment [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	87		100
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	87		100
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	71	114
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	1	2
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	1	2
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,499		1,330
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,376		1,330
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	1,369	1,053
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	11	10
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	11	10
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	228		231
Impaired Financing Receivable, with Related Allowance, Recorded Investment	230		232
Impaired Financing Receivable, Related Allowance	29		29
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	231	343
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	3
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	3
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	129		101
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	99		101
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	99	102
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	309		297
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	289		$ 297
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	292	327
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method

XML

Note 3 - Loans - Loans Past Due (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 1,053	$ 1,090
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	1
Financing Receivable, Recorded Investment, Past Due	378	336
Financing Receivable, Recorded Investment, Not Past Due	329,163	318,905
Financing Receivable, Recorded Investment, Total	329,541	319,241
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	24	249
Financing Receivable, Recorded Investment, Past Due	75	256
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due	3
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	299	80
Financing Receivable, Recorded Investment, Past Due	300	80
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	62,325	61,079
Financing Receivable, Recorded Investment, Total	62,325	61,079
Commercial Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Total	195,738	188,753
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	675	702
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due	234	238
Financing Receivable, Recorded Investment, Not Past Due	190,949	183,129
Financing Receivable, Recorded Investment, Total	191,183	183,367
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	4,555	5,386
Financing Receivable, Recorded Investment, Total	4,555	5,386
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due	15	238
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Past Due	219
Commercial Real Estate Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Total	66,617	64,533
Residential Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	1,837	1,190
Financing Receivable, Recorded Investment, Total	1,837	1,190
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	89	90
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing	1
Financing Receivable, Recorded Investment, Past Due	130	91
Financing Receivable, Recorded Investment, Not Past Due	49,875	47,738
Financing Receivable, Recorded Investment, Total	50,005	47,829
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	289	298
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	14,775	15,514
Financing Receivable, Recorded Investment, Total	14,775	15,514
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due	49	11
Residential Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due	81	80
Residential Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due	14	7
Financing Receivable, Recorded Investment, Not Past Due	4,847	4,869
Financing Receivable, Recorded Investment, Total	4,861	4,876
Consumer Portfolio Segment [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due	11	7
Consumer Portfolio Segment [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due	3
Consumer Portfolio Segment [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due

XML

Note 3 - Loans - Recorded Investment by Risk Category (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Pass [Member]
Financing Receivable, Net	$ 262,086	$ 253,774
Special Mention [Member]
Financing Receivable, Net	7,508	7,544
Substandard [Member]
Financing Receivable, Net	3,694	3,484
Doubtful [Member]
Financing Receivable, Net	973	1,011
Not Rated [Member]
Financing Receivable, Net	55,280	53,428
Commercial Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Net	60,364	59,214
Commercial Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Net	428	288
Commercial Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Net	1,080	1,162
Commercial Portfolio Segment [Member] | Doubtful [Member]
Financing Receivable, Net
Commercial Portfolio Segment [Member] | Not Rated [Member]
Financing Receivable, Net	453	415
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member]
Financing Receivable, Net	4,555	5,386
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Net	180,579	172,471
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member]
Financing Receivable, Net
Commercial Real Estate Portfolio Segment [Member] | Special Mention [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Net	6,793	7,061
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member]
Financing Receivable, Net
Commercial Real Estate Portfolio Segment [Member] | Substandard [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Net	2,177	1,878
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | Construction Loans [Member]
Financing Receivable, Net
Commercial Real Estate Portfolio Segment [Member] | Doubtful [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Net	675	702
Commercial Real Estate Portfolio Segment [Member] | Not Rated [Member] | Construction Loans [Member]
Financing Receivable, Net
Commercial Real Estate Portfolio Segment [Member] | Not Rated [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Net	959	1,255
Residential Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member]
Financing Receivable, Net	695	8
Residential Portfolio Segment [Member] | Pass [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	2,375	2,577
Residential Portfolio Segment [Member] | Pass [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	13,438	14,025
Residential Portfolio Segment [Member] | Special Mention [Member] | Construction Loans [Member]
Financing Receivable, Net
Residential Portfolio Segment [Member] | Special Mention [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	95
Residential Portfolio Segment [Member] | Special Mention [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	192	195
Residential Portfolio Segment [Member] | Substandard [Member] | Construction Loans [Member]
Financing Receivable, Net
Residential Portfolio Segment [Member] | Substandard [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	27	27
Residential Portfolio Segment [Member] | Substandard [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	410	417
Residential Portfolio Segment [Member] | Doubtful [Member] | Construction Loans [Member]
Financing Receivable, Net
Residential Portfolio Segment [Member] | Doubtful [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	9	11
Residential Portfolio Segment [Member] | Doubtful [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	289	298
Residential Portfolio Segment [Member] | Not Rated [Member] | Construction Loans [Member]
Financing Receivable, Net	1,142	1,182
Residential Portfolio Segment [Member] | Not Rated [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	47,499	45,214
Residential Portfolio Segment [Member] | Not Rated [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	446	579
Consumer Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Net	80	93
Consumer Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Net
Consumer Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Net
Consumer Portfolio Segment [Member] | Doubtful [Member]
Financing Receivable, Net
Consumer Portfolio Segment [Member] | Not Rated [Member]
Financing Receivable, Net	$ 4,781	$ 4,783

XML

Note 4 - Fair Value (Details Textual) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017	Jun. 30, 2018
Assets, Fair Value Disclosure	$ 0		$ 0
Impaired Loans [Member]
Allowance for Loan and Lease Losses, Period Increase (Decrease), Total	$ 0	$ (17)

XML

Note 4 - Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Securities, available-for-sale	$ 137,668	$ 144,028
US Government-sponsored Enterprises Debt Securities [Member]
Securities, available-for-sale	15,839	16,122
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Securities, available-for-sale
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities, available-for-sale	15,839	16,122
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Securities, available-for-sale
US States and Political Subdivisions Debt Securities [Member]
Securities, available-for-sale	55,058	56,590
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Securities, available-for-sale
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities, available-for-sale	55,058	56,590
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Securities, available-for-sale
Residential Mortgage Backed Securities [Member]
Securities, available-for-sale	59,927	63,408
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Securities, available-for-sale
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities, available-for-sale	59,927	63,408
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Securities, available-for-sale
Commercial Mortgage Backed Securities [Member]
Securities, available-for-sale	1,408	1,415
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Securities, available-for-sale
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Securities, available-for-sale	1,408	1,415
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Securities, available-for-sale
Collateralized Debt Obligations [Member]
Securities, available-for-sale	5,436	5,766
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 1 [Member]
Securities, available-for-sale
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 2 [Member]
Securities, available-for-sale	5,436	5,766
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member]
Securities, available-for-sale
Pooled Trust Preferred Securities Subject to Mandatory Redemption [Member]
Securities, available-for-sale		727
Pooled Trust Preferred Securities Subject to Mandatory Redemption [Member] | Fair Value, Inputs, Level 1 [Member]
Securities, available-for-sale
Pooled Trust Preferred Securities Subject to Mandatory Redemption [Member] | Fair Value, Inputs, Level 2 [Member]
Securities, available-for-sale		727
Pooled Trust Preferred Securities Subject to Mandatory Redemption [Member] | Fair Value, Inputs, Level 3 [Member]
Securities, available-for-sale

XML

Note 4 - Fair Value - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2018	Jun. 30, 2018
Held-to-maturity, fair value	$ 3,965	$ 4,048
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member]
Cash and cash equivalents	10,785	7,772
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Cash and cash equivalents	10,785	7,772
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member]
Certificates of deposits in other financial institutions	2,973	2,973
Loans held for sale	2,663	1,448
Accrued interest receivable	1,648	1,404
Short-term borrowings	2,902	13,367
Federal Home Loan Bank advances	19,739	11,756
Accrued interest payable	88	68
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Demand and Savings Deposits [Member]
Demand and savings deposits	361,490	351,422
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Time Deposits [Member]
Demand and savings deposits	79,049	78,541
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Certificates of deposits in other financial institutions	2,966	2,976
Loans held for sale	2,718	1,474
Accrued interest receivable	1,648	1,404
Short-term borrowings	2,902	13,367
Federal Home Loan Bank advances	19,274	11,146
Accrued interest payable	88	68
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Demand and Savings Deposits [Member]
Demand and savings deposits	361,490	351,422
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Time Deposits [Member]
Demand and savings deposits	78,665	78,332
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member]
Held-to-maturity, fair value	3,929	4,024
Loans, net	325,144	315,087
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Held-to-maturity, fair value	3,965	4,048
Loans, net	$ 319,824	$ 311,642

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Note 5 - Earnings Per Share (Details Textual) - shares	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	0	2,062

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Note 5 - Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Net income available to common shareholders	$ 1,673	$ 929
Weighted average common shares outstanding (in shares)	2,729,103	2,724,997
Basic income per share (in dollars per share)	$ 0.61	$ 0.34
Net income available to common shareholders	$ 1,673	$ 929
Weighted average common shares outstanding (in shares)	2,729,103	2,724,997
Dilutive effect of restricted stock (in shares)	68
Total common shares and dilutive potential common shares (in shares)	2,729,171	2,724,997
Dilutive income per share (in dollars per share)	$ 0.61	$ 0.34

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Note 6 - Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Accumulated other comprehensive income (loss), before tax	$ (2,069)	$ 675
Accumulated other comprehensive income (loss), tax	434	(230)
Accumulated other comprehensive income (loss), net	(1,635)	445
Unrealized holding gain on available-for-sale securities arising during the period, before tax	(893)	104
Unrealized holding loss on available-for-sale securities arising during the period, tax	188	(35)
Unrealized holding gain on available-for-sale securities arising during the period, net	(705)	69
Amounts reclassified from accumulated other comprehensive income, before tax	(587)	(38)	[1],[2]
Amounts reclassified from accumulated other comprehensive income, tax	124	13	[1],[2]
Amounts reclassified from accumulated other comprehensive income, net	(463)	(25)	[1],[2]
Net current period other comprehensive income (loss), before tax	(1,480)	66
Net current period other comprehensive loss, tax	312	(22)
Other comprehensive income (loss)	(1,168)	44
Accumulated other comprehensive income (loss), before tax	(3,549)	741
Accumulated other comprehensive income (loss), tax	746	(252)
Accumulated other comprehensive income (loss), net	$ (2,803)	$ 489

[1] Income tax expense

[2] Securities (gains) losses, net

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Note 7 - Revenue Recognition - Noninterest Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2018	Sep. 30, 2017
Noninterest income (in scope of Topic 606)	$ 839	$ 766
Noninterest income	1,495	872
Deposit Account [Member]
Noninterest income (in scope of Topic 606)	316	308
Debit Card [Member]
Noninterest income (in scope of Topic 606)	358	323
Financial Service, Other [Member]
Noninterest income (in scope of Topic 606)	165	135
Product and Service, Out of Scope of ASC 606 [Member]
Noninterest income	$ 656	$ 106