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, 2019

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 every Interactive Data File required to be submitted 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 such files).

Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a 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 ☐	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 ☒

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
None

There were 2,745,658 shares of Registrant’s common stock, no par value, outstanding as of November 4, 2019.

CONSUMERS BANCORP, INC.

FORM 10-Q

QUARTER ENDED September 30, 2019

Table of Contents

	Page Number (s)
Part I – Financial Information
Item 1 – Financial Statements (Unaudited)
Consolidated Balance Sheets at September 30, 2019 and June 30, 2019	1
Consolidated Statements of Income for the three months ended September 30, 2019 and 2018	2
Consolidated Statements of Comprehensive Income for the three months ended September 30, 2019 and 2018	3
Condensed Consolidated Statements of Changes in Shareholders’ Equity for the three months ended September 30, 2019 and 2018	4
Condensed Consolidated Statements of Cash Flows for the three months ended September 30, 2019 and 2018	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, 2019			June 30, 2019
ASSETS
Cash on hand and noninterest-bearing deposits in financial institutions	$	11,642		$	9,322
Federal funds sold and interest-bearing deposits in financial institutions		860			139
Total cash and cash equivalents		12,502			9,461
Certificates of deposit in other financial institutions		1,493			1,983
Securities, available-for-sale		137,603			144,010
Securities, held-to-maturity (fair value of $3,764 at September 30, 2019 and $3,821 at June 30, 2019)		3,686			3,786
Federal bank and other restricted stocks, at cost		1,723			1,723
Loans held for sale		2,436			1,657
Total loans		383,820			369,175
Less allowance for loan losses		(3,909	)		(3,788	)
Net loans		379,911			365,387
Cash surrender value of life insurance		9,245			9,606
Premises and equipment, net		14,539			14,155
Accrued interest receivable and other assets		2,049			2,168
Total assets	$	565,187		$	553,936
LIABILITIES
Deposits
Noninterest-bearing demand	$	122,196		$	116,239
Interest bearing demand		86,887			81,469
Savings		166,937			162,261
Time		111,414			112,205
Total deposits		487,434			472,174
Short-term borrowings		3,754			3,686
Federal Home Loan Bank advances		16,300			22,700
Accrued interest and other liabilities		4,706			4,210
Total liabilities		512,194			502,770
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, 2019 and June 30, 2019)		14,697			14,656
Retained earnings		37,621			36,487
Treasury stock, at cost (108,475 and 120,288 common shares as of September 30, 2019 and June 30, 2019, respectively)		(1,454	)		(1,543	)
Accumulated other comprehensive income		2,129			1,566
Total shareholders’ equity		52,993			51,166
Total liabilities and shareholders’ equity	$	565,187		$	553,936

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)	2019			2018
Interest and dividend income
Loans, including fees	$	4,761		$	3,949
Securities, taxable		510			526
Securities, tax-exempt		399			375
Federal bank and other restricted stocks		20			22
Federal funds sold and other interest-bearing deposits		26			23
Total interest and dividend income		5,716			4,895
Interest expense
Deposits		945			514
Short-term borrowings		11			14
Federal Home Loan Bank advances		79			68
Total interest expense		1,035			596
Net interest income		4,681			4,299
Provision for loan losses		130			115
Net interest income after provision for loan losses		4,551			4,184
Noninterest income
Service charges on deposit accounts		373			316
Debit card interchange income		391			358
Bank owned life insurance death benefit		324			—
Bank owned life insurance income		68			69
Securities gains, net		106			587
Other		207			165
Total noninterest income		1,469			1,495
Noninterest expenses
Salaries and employee benefits		2,173			1,975
Occupancy and equipment		532			488
Data processing expenses		385			150
Debit card processing expenses		201			194
Professional and director fees		257			170
FDIC assessments		(7	)		38
Franchise taxes		95			89
Marketing and advertising		181			104
Telephone and network communications		74			72
Other		414			404
Total noninterest expenses		4,305			3,684
Income before income taxes		1,715			1,995
Income tax expense		212			322
Net income	$	1,503		$	1,673
Basic and diluted earnings per share	$	0.55		$	0.61

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,
	2019			2018
Net income	$	1,503		$	1,673
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		818			(893	)
Reclassification adjustment for gains included in income		(106	)		(587	)
Net unrealized gains (losses)		712			(1,480	)
Income tax effect		(149	)		312
Other comprehensive income (loss)		563			(1,168	)
Total comprehensive income	$	2,066		$	505

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,
	2019			2018
Balance at beginning of period	$	51,166		$	43,761
Net income		1,503			1,673
Other comprehensive income (loss)		563			(1,168	)
11,813 and 4,201 shares issued associated with stock awards during the three months ended September 30, 2019 and 2018, respectively		130			59
Common cash dividends		(369	)		(355	)
Balance at the end of the period	$	52,993		$	43,970
Common cash dividends per share	$	0.135		$	0.13

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,
	2019			2018
Cash flows from operating activities
Net cash from operating activities	$	806		$	533
Cash flow from investing activities
Securities available-for-sale
Purchases		(2,318	)		(2,060	)
Maturities, calls and principal pay downs		4,893			4,730
Proceeds from sales		4,460			2,573
Securities held-to-maturity
Principal pay downs		100			95
Net decrease in certificate of deposit in other financial institutions		490			—
Net increase in loans		(14,654	)		(10,247	)
Proceeds from BOLI death benefit		753			—
Acquisition of premises and equipment		(48	)		(350	)
Net cash from investing activities		(6,324	)		(5,259	)
Cash flow from financing activities
Net increase in deposit accounts		15,260			10,576
Net change in short-term borrowings		68			(10,465	)
Proceeds from Federal Home Loan Bank advances		1,500			8,000
Repayments of Federal Home Loan Bank advances		(7,900	)		(17	)
Dividends paid		(369	)		(355	)
Net cash from financing activities		8,559			7,739
Increase in cash or cash equivalents		3,041			3,013
Cash and cash equivalents, beginning of period		9,461			7,772
Cash and cash equivalents, end of period	$	12,502		$	10,785
Supplemental disclosure of cash flow information:
Cash paid during the period:
Interest	$	1,050		$	576
Federal income taxes		—			—
Non-cash items:
Transfer from loans held for sale to portfolio		—			75
Issuance of treasury stock for stock awards		89			59
Right of use assets obtained in exchange for lease liabilities		582			—

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, 2019. 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 of the Corporation’s 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.

Adoption of New Accounting Standards: In February 2016, FASB issued accounting standards update (ASU) 2016-02, Leases (Topic 842). This ASU requires 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 are required so users can understand more about the nature of an entity’s leasing activities. The new guidance was effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after December 15, 2018. The Corporation has several lease agreements, such as branch locations, which were previously considered operating leases, and therefore, not recognized on the Corporation’s consolidated condensed statements of financial condition. The new guidance requires these lease agreements to now be recognized on the consolidated condensed statements of financial condition as a right-of-use asset and a corresponding lease liability. As of July 1, 2019, the Corporation adopted ASU 2016-02 using the modified retrospective method. There was no cumulative-effect adjustment to the opening balance of retained earnings for the period of adoption. At September 30, 2019, the Corporation had contractual operating lease commitments of $555, before considering renewal options that are generally present.

6

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Recently Issued Accounting Pronouncements Not Yet Effective: In June 2016, Financial Accounting Standards Board (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 the 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. However, during July 2019, FASB unanimously voted for a proposal to delay this ASU to January 2023 for smaller reporting companies. On October 16, 2019, FASB approved a final ASU delaying the effective date. The new guidance is effective for annual and interim periods beginning after December 15, 2022 for certain entities, including smaller reporting companies. The Corporation is a small reporting company.

Note 2 – Acquisition

On June 14, 2019, Consumers entered into an Agreement and Plan of Merger (Merger Agreement) with Peoples Bancorp of Mt. Pleasant, Inc. (Peoples) and its wholly owned subsidiary, The Peoples National Bank of Mount Pleasant. Each Peoples shareholder will receive 63.16 common shares of Consumers common stock or $1,200.00 in cash, subject to total consideration being paid 50% in Consumers common shares and 50% cash as provided in the Merger Agreement. Based on Consumers’ 20-day average closing price of $19.07 on June 13, 2019, the aggregate implied transaction value was approximately $10.3 million. On September 30, 2019, Peoples had approximately $72.4 million in total assets, $54.2 million in loans and $62.7 million in deposits at its three banking centers located in Mt. Pleasant, Adena, and Dillonvale, Ohio. The transaction is expected to close in January 2020, pending the completion of customary closing conditions. All necessary shareholder and regulatory approvals have been received.

Note 3 – Securities

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2019
Obligations of U.S. government-sponsored entities and agencies	$	14,646	$	184	$	(13	)	$	14,817
Obligations of state and political subdivisions		55,737		1,966		(4	)		57,699
U.S. Government-sponsored mortgage-backed securities–residential		54,497		576		(209	)		54,864
U.S. Government-sponsored mortgage-backed securities– commercial		1,651		11		(2	)		1,660
U.S. Government-sponsored collateralized mortgage obligations– residential		8,378		201		(16	)		8,563
Total available-for-sale securities	$	134,909	$	2,938	$	(244	)	$	137,603

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
September 30, 2019
Obligations of state and political subdivisions	$	3,686	$	78	$	—	$	3,764
Total held-to-maturity securities	$	3,686	$	78	$	—	$	3,764

7

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2019
Obligations of U.S. government-sponsored entities and agencies	$	19,227	$	287	$	(1	)	$	19,513
Obligations of state and political subdivisions		56,405		1,557		(33	)		57,929
U.S. Government-sponsored mortgage-backed securities – residential		56,309		450		(448	)		56,311
U.S. Government-sponsored collateralized mortgage obligations – residential		10,087		198		(28	)		10,257
Total available-for-sale securities	$	142,028	$	2,492	$	(510	)	$	144,010

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2019
Obligations of state and political subdivisions	$	3,786	$	35	$	—	$	3,821
Total held-to-maturity securities	$	3,786	$	35	$	—	$	3,821

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

	Three Months Ended September 30,
	2019		2018
Proceeds from sales and calls	$	4,460	$	2,573
Gross realized gains		106		593
Gross realized losses		—		6

The income tax provision related to the net realized gains amounted to $22 for the three months ended September 30, 2019. The income tax benefit related to the net realized losses amounted to $124 for the three months ended September 30, 2018.

The amortized cost and fair values of debt securities at September 30, 2019, 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	$	5,362	$	5,382
Due after one year through five years		14,540		14,802
Due after five years through ten years		23,261		23,727
Due after ten years		27,220		28,605
Total		70,383		72,516
U.S. Government-sponsored mortgage-backed and related securities		64,526		65,087
Total available-for-sale securities	$	134,909	$	137,603
Held-to-Maturity
Due after five years through ten years	$	451	$	472
Due after ten years		3,235		3,292
Total held-to-maturity securities	$	3,686	$	3,764

8

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

The following table summarizes the securities with unrealized losses at September 30, 2019 and June 30, 2019, 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, 2019
Obligations of US government-sponsored entities and agencies	$	2,668	$	(13	)	$	—	$	—		$	2,668	$	(13	)
Obligations of states and political subdivisions		1,780		(3	)		209		(1	)		1,989		(4	)
U.S. Government-sponsored mortgage-backed securities – residential		2,558		(6	)		29,328		(203	)		31,886		(209	)
U.S. Government-sponsored mortgage-backed securities – commercial		705		(2	)		—		—			705		(2	)
U.S. Government-sponsored collateralized mortgage obligations – residential		462		(1	)		1,486		(15	)		1,948		(16	)
Total temporarily impaired	$	8,173	$	(25	)	$	31,023	$	(219	)	$	39,196	$	(244	)

	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, 2019
Obligations of U.S. government-sponsored entities and agencies	$	—	$	—	$	998	$	(1	)	$	998	$	(1	)
Obligations of states and political subdivisions		—		—		5,201		(33	)		5,201		(33	)
U.S. Government-sponsored mortgage-backed securities – residential		—		—		36,362		(448	)		36,362		(448	)
U.S. Government-sponsored collateralized mortgage obligations - residential		—		—		3,277		(28	)		3,277		(28	)
Total temporarily impaired	$	—	$	—	$	45,838	$	(510	)	$	45,838	$	(510	)

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, 2019 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 4 – Loans

Major classifications of loans were as follows:

	September 30, 2019			June 30, 2019
Commercial	$	81,782		$	80,453
Commercial real estate:
Construction		14,583			16,120
Other		205,214			195,269
1 – 4 Family residential real estate:
Owner occupied		58,406			55,941
Non-owner occupied		14,936			14,517
Construction		3,115			1,931
Consumer		5,912			5,150
Subtotal		383,948			369,381
Net Deferred loan fees and costs		(128	)		(206	)
Allowance for loan losses		(3,909	)		(3,788	)
Net Loans	$	379,911		$	365,387

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended September 30, 2019:

						1-4 Family
				Commercial		Residential
				Real		Real
	Commercial			Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	660		$	2,575	$	494	$	59		$	3,788
Provision for loan losses		(11	)		69		56		16			130
Loans charged-off		—			—		—		(16	)		(16	)
Recoveries		—			1		—		6			7
Total ending allowance balance	$	649		$	2,645	$	550	$	65		$	3,909

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

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, 2019. Included in the recorded investment in loans is $764 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	$	2	$	7	$	—	$	—	$	9
Collectively evaluated for impairment		647		2,638		550		65		3,900
Total ending allowance balance	$	649	$	2,645	$	550	$	65	$	3,909
Recorded investment in loans:
Loans individually evaluated for impairment	$	167	$	460	$	266	$	—	$	893
Loans collectively evaluated for impairment		81,639		219,298		76,822		5,932		383,691
Total ending loans balance	$	81,806	$	219,758	$	77,088	$	5,932	$	384,584

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, 2019. Included in the recorded investment in loans is $891 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	$	2	$	7	$	—	$	—	$	9
Collectively evaluated for impairment		658		2,568		494		59		3,779
Total ending allowance balance	$	660	$	2,575	$	494	$	59	$	3,788
Recorded investment in loans:
Loans individually evaluated for impairment	$	174	$	658	$	357	$	—	$	1,189
Loans collectively evaluated for impairment		80,413		210,709		72,591		5,164		368,877
Total ending loans balance	$	80,587	$	211,367	$	72,948	$	5,164	$	370,066

11

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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, 2019 and for the three months ended September 30, 2019:

	As of September 30, 2019						Three Months ended September 30, 2019
	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 real estate:
Other	$	316		240	$	—	$	362	$	86	$	86
1-4 Family residential real estate:
Owner occupied		43		12		—		39		7		7
Non-owner occupied		292		255		—		257		—		—
With an allowance recorded:
Commercial real estate:
Other		218		220		7		220		3		3
Commercial		167		169		2		170		3		3
Total	$	1,036	$	896	$	9	$	1,048	$	99	$	99

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, 2019 and for the three months ended September 30, 2018:

	As of June 30, 2019						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	$	—	$	—	$	—	$	71	$	1	$	1
Commercial real estate:
Other		580		436		—		1,369		11		11
1-4 Family residential real estate:
Owner occupied		124		93		—		99		—		—
Non-owner occupied		297		264		—		292		—		—
With an allowance recorded:
Commercial real estate:
Other		221		222		7		231		3		3
Commercial		173		174		2		—		—		—
Total	$	1,395	$	1,189	$	9	$	2,062	$	15	$	15

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, 2019 and June 30, 2019:

	September 30, 2019				June 30, 2019
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial real estate:
Other	$	185	$	—	$	436	$	—
1 – 4 Family residential:
Owner occupied		5		—		85		—
Non-owner occupied		254		—		264		—
Total	$	444	$	—	$	785	$	—

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, 2019 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	$	—	$	—	$	—	$	—	$	81,806	$	81,806
Commercial real estate:
Construction		—		—		—		—		14,540		14,540
Other		—		8		—		8		205,210		205,218
1-4 Family residential:
Owner occupied		—		5		—		5		58,974		58,979
Non-owner occupied		—		—		—		—		14,936		14,936
Construction		—		—		—		—		3,173		3,173
Consumer		16		—		—		16		5,916		5,932
Total	$	16	$	13	$	—	$	29	$	384,555	$	384,584

The above table of past due loans includes the recorded investment in non-accrual loans of $13 in the 60-89 days category and $431 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, 2019 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	$	—	$	—	$	—	$	—	$	80,587	$	80,587
Commercial real estate:
Construction		—		—		—		—		16,075		16,075
Other		199		—		—		199		195,093		195,292
1-4 Family residential:
Owner occupied		40		—		80		120		56,347		56,467
Non-owner occupied		—		—		—		—		14,518		14,518
Construction		—		—		—		—		1,963		1,963
Consumer		1		—		—		1		5,163		5,164
Total	$	240	$	—	$	80	$	320	$	369,746	$	370,066

The above table of past due loans includes the recorded investment in non-accrual loans of $198 in the 30-59 days, $80 in the 90 days or greater category and $507 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, 2019 and June 30, 2019, the Corporation had $706 and $725, respectively, of loans classified as TDRs which are included in impaired loans above. As of September 30, 2019, the Corporation had not committed to lend any additional funds to customers with outstanding loans that were classified as troubled debt restructurings. As of June 30, 2019, the Corporation had committed to lend an additional $9 to customers with outstanding loans that were classified as troubled debt restructurings. At September 30, 2019 and June 30, 2019, the Corporation had $9 of specific reserves allocated to these loans.

During the three-month periods ended September 30, 2019 and 2018, 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, 2019 and 2018.

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, 2019 and 2018. 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, 2019
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	76,118	$	4,448	$	959	$	—	$	281
Commercial real estate:
Construction		14,540		—		—		—		—
Other		191,044		6,741		5,308		185		1,940
1-4 Family residential real estate:
Owner occupied		2,192		—		23		4		56,760
Non-owner occupied		13,823		200		311		255		347
Construction		105		—		—		—		3,068
Consumer		24		—		—		—		5,908
Total	$	297,846	$	11,389	$	6,601	$	444	$	68,304

As of June 30, 2019, and based on the most recent analysis performed, the recorded investment by risk category of loans by class of loans is as follows:

	As of June 30, 2019
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	74,393	$	4,942	$	1,012	$	—	$	240
Commercial real estate:
Construction		16,075		—		—		—		—
Other		179,952		8,071		5,337		436		1,496
1-4 Family residential real estate:
Owner occupied		2,245		—		24		5		54,193
Non-owner occupied		13,413		205		318		263		319
Construction		—		—		—		—		1,963
Consumer		32		—		—		—		5,132
Total	$	286,110	$	13,218	$	6,691	$	704	$	63,343

Note 5 - 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).

15

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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, 2019 Using
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	14,817	$	—	$	14,817	$	—
Obligations of states and political subdivisions		57,699		—		57,699		—
U.S. Government-sponsored mortgage-backed securities – residential		54,864		—		54,864		—
U.S. Government-sponsored mortgage-backed securities – commercial		1,660		—		1,660		—
U.S. Government-sponsored collateralized mortgage obligations - residential		8,563		—		8,563		—

			Fair Value Measurements at June 30, 2019 Using
	Balance at June 30, 2019		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of government-sponsored entities	$	19,513	$	—	$	19,513	$	—
Obligations of states and political subdivisions		57,929		—		57,929		—
U.S. Government-sponsored mortgage-backed securities - residential		56,311		—		56,311		—
U.S. Government-sponsored collateralized mortgage obligations		10,257		—		10,257		—

There were no transfers between Level 1 and Level 2 during the three-month periods ended September 30, 2019 or 2018.

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 was no other real estate owned being carried at fair value as of September 30, 2019 or June 30, 2019.

16

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Financial assets measured at fair value on a non-recurring basis at September 30, 2019 and June 30, 2019 are summarized below: 

			Fair Value Measurements at September 30, 2019 Using
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	55	$	—	$	—	$	55

			Fair Value Measurements at June 30, 2019 Using
	Balance at June 30, 2019		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	59	$	—	$	—	$	59

Impaired loans, measured for impairment using the fair value of the collateral, had a recorded investment of $55, with no valuation allowance at September 30, 2019. Impaired loans, measured for impairment using the fair value of the collateral, had a recorded investment of $59, with no valuation allowance at June 30, 2019. There was no impact to the provision for loan losses for the three months ended September 30, 2019 and 2018.

The following tables presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis at September 30, 2019 and June 30, 2019:

September 30, 2019	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	55	Settlement Agreement		N/A		0.0	%		0.0	%

June 30, 2019	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	59	Settlement Agreement		N/A		0.0	%		0.0	%

17

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

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, 2019				June 30, 2019
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	12,502	$	12,502	$	9,461	$	9,461
Level 2 inputs:
Certificates of deposits in other financial institutions		1,493		1,495		1,983		1,983
Loans held for sale		2,436		2,485		1,657		1,687
Accrued interest receivable		1,547		1,547		1,607		1,607
Level 3 inputs:
Securities held-to-maturity		3,686		3,764		3,786		3,821
Loans, net		379,911		385,670		365,387		366,911
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		376,020		376,020		359,969		359,969
Time deposits		111,414		112,141		112,205		112,841
Short-term borrowings		3,754		3,754		3,686		3,686
Federal Home Loan Bank advances		16,300		16,287		22,700		22,596
Accrued interest payable		117		117		132		132

Note 6 – 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 4,062 shares of restricted stock that were anti-dilutive for the three-month period ended September 30, 2019. There were no equity instruments that were anti-dilutive for the three-month period ended September 30, 2018. The following table details the calculation of basic and diluted earnings per share:

	For the Three Months Ended September 30,
	2019		2018
Basic:
Net income available to common shareholders	$	1,503	$	1,673
Weighted average common shares outstanding		2,734,578		2,729,103
Basic income per share	$	0.55	$	0.61
Diluted:
Net income available to common shareholders	$	1,503	$	1,673
Weighted average common shares outstanding		2,734,578		2,729,103
Dilutive effect of restricted stock		—		68
Total common shares and dilutive potential common shares		2,734,578		2,729,171
Dilutive income per share	$	0.55	$	0.61

18

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

(Dollars in thousands, except per share amounts)

Note 7 –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, 2019 and 2018, were as follows:

	Pretax			Tax Effect			After-tax			Affected Line Item in Consolidated Statements of Income
Balance as of June 30, 2019	$	1,982		$	(416	)	$	1,566
Unrealized holding gain on available-for-sale securities arising during the period		818			(171	)		647
Amounts reclassified from accumulated other comprehensive income		(106	)		22			(84	)	(a)(b)
Net current period other comprehensive income		712			(149	)		563
Balance as of September 30, 2019	$	2,694		$	(565	)	$	2,129
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	)
Amount reclassified from accumulated other comprehensive income		(587	)		124			(463	)	(a)(b)
Net current period other comprehensive income		(1,480	)		312			(1,168	)
Balance as of September 30, 2018	$	(3,549	)	$	746		$	(2,803	)

(a) Securities (gains) losses, net

(b) Income tax expense

Note 8 – 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, 2019 and 2018.

	For the three months ended September 30,
	2019		2018
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	373	$	316
Debit card interchange income		391		358
Other income		396		66
Noninterest income (in scope of Topic 606)		1,160		740
Noninterest income (out-of-scope of Topic 606)		309		755
Total noninterest income	$	1,469	$	1,495

Note 9 – Leases

Effective July 1, 2019, the Corporation adopted ASU 2016-02, Leases (Topic 842). As of September 30, 2019, the Corporation leases real estate for six office locations and various equipment under operating lease agreements. The lease agreements have maturity dates ranging from one year or less to September 1, 2028, including extension periods. Lease agreements for four locations have a lease term of 12 months or less and are therefore considered short-term leases and are exempt from Topic 842. The weighted average remaining life of the lease term for the leases with a term over 12 months was 60.92 years as of September 30, 2019.

Costs associated with operating leases accounted for under Topic 842 was $27 and the cost of short-term leases was $22 for the three months ended September 30, 2019. The right-of-use asset, included in premises and equipment, and lease liability, included in other liabilities, were $555 as of September 30, 2019.

Total estimated rental commitments for the operating leases within the scope of Topic 842 were as follows as of September 30, 2019:

Period Ending June 30
2020	$	82
2021		105
2022		95
2023		76
2024		51
Thereafter		146
Total	$	555

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, 2019, compared to the same period in 2018, and the consolidated balance sheet at September 30, 2019, compared to June 30, 2019. 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.

On June 14, 2019, Consumers entered into a Merger Agreement with Peoples and its wholly-owned subsidiary, The Peoples National Bank of Mount Pleasant. On September 30, 2019, Peoples had approximately $72.4 million in total assets, $54.2 million in loans and $62.7 million in deposits at its three banking centers located in Mt. Pleasant, Adena, and Dillonvale, Ohio. The transaction is expected to close in January 2020, pending the completion of customary closing conditions. All necessary shareholder and regulatory approvals have been received.

Results of Operations

Three Months Ended September 30, 2019 and 2018

Net income for the first quarter of fiscal year 2020 was $1,503, or $0.55 per common share, compared to $1,673, or $0.61 per common share for the three months ended September 30, 2018. The following are key highlights of our results of operations for the three months ended September 30, 2019 compared to the prior fiscal year comparable period:

● net interest income increased by $382 to $4,681, or by 8.9%, in the first quarter of fiscal year 2020 from the same prior year period;

● noninterest income decreased by $26, or 1.7%, in the first quarter of fiscal year 2020 from the same prior year period and included $324 of income recognized as a result of proceeds received from a bank owned life insurance policy claim. Additionally, a $106 gain from the sale or call of securities was recognized in the first quarter of fiscal year 2020 compared with a $587 gain for the same prior year period; and

● noninterest expenses increased by $621, or 16.9%, in the first quarter of fiscal year 2020 from the same prior year period and include $317 of expenses associated with the expected merger with Peoples.

Return on average equity and return on average assets were 11.42% and 1.07%, respectively, for the first fiscal quarter 2020 compared to 14.92% and 1.32%, 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 2020 and 2019 fiscal years was 21.0%. All average balances are daily average balances. Non-accruing loans are included in average loan balances.

The Corporation’s net interest margin was 3.61% for the three months ended September 30, 2019, compared with 3.70% for the same period in 2018. FTE net interest income for the three months ended September 30, 2019 increased by $324, or 7.3%, to $4,758 from $4,434 for the same year ago period.

Tax-equivalent interest income for the three months ended September 30, 2019 increased by $763, or 15.2%, from the same year ago period. Interest income was positively impacted by a $51,474, or 10.9%, increase in average interest-earning assets from the same prior year period. Additionally, the Corporation’s yield on average interest-earning assets increased to 4.40% for the three months ended September 30, 2019 from 4.20% for the same period last year. The yield on average interest-earning assets was positively impacted by a 0.19% increase in the yield on loans. Additionally, the yield on average interest-earning assets was positively impacted by a change in the earning asset mix with higher yielding loans increasing and lower yielding securities decreasing.

Interest expense for the three months ended September 30, 2019 increased by $439 from the same year ago period. The Corporation’s cost of funds was 1.08% for the three months ended September 30, 2019 compared with 0.69% 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 Federal Home Loan Bank (FHLB) advances.

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) 

	2019								2018
	Average Balance			Interest		Yield/ Rate			Average Balance			Interest		Yield/ Rate
Interest-earning assets:
Taxable securities	$	83,631		$	510		2.44	%	$	86,075		$	526		2.37	%
Nontaxable securities (1)		60,783			474		3.19			59,260			506		3.37
Loans receivable (1)		373,362			4,763		5.06			322,193			3,953		4.87
Federal bank and other restricted stocks		1,723			20		4.61			1,459			22		5.98
Interest bearing deposits and federal funds sold		5,383			26		1.92			4,421			23		2.06
Total interest-earning assets		524,882			5,793		4.40	%		473,408			5,030		4.20	%
Noninterest-earning assets		30,831								30,809
Total Assets	$	555,713							$	504,217
Interest-bearing liabilities:
NOW	$	82,491		$	145		0.70	%	$	82,368		$	125		0.60	%
Savings		166,181			222		0.53			163,262			137		0.33
Time deposits		112,642			578		2.04			78,542			252		1.27
Short-term borrowings		3,929			11		1.11			4,045			14		1.37
FHLB advances		15,378			79		2.04			15,656			68		1.72
Total interest-bearing liabilities		380,621			1,035		1.08	%		343,873			596		0.69	%
Noninterest-bearing liabilities:
Noninterest-bearing checking accounts		118,256								111,677
Other liabilities		4,638								4,185
Total liabilities		503,515								459,735
Shareholders’ equity		52,198								44,482
Total liabilities and shareholders’ equity	$	555,713							$	504,217
Net interest income, interest rate spread (1)				$	4,758		3.32	%				$	4,434		3.51	%
Net interest margin (net interest as a percent of average interest-earning assets) (1)							3.61	%							3.70	%
Federal tax exemption on non-taxable securities and loans included in interest income				$	77							$	135
Average interest-earning assets to interest-bearing liabilities		137.90	%							137.67	%

(1) calculated on a fully taxable equivalent basis utilizing a statutory federal income tax rate of 21.0%

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-month period ended September 30, 2019, the provision for loan losses was $130 compared with $115 for the same prior year period.

Non-performing loans were $444 as of September 30, 2019 compared with $785 as of June 30, 2019 and $1,054 as of September 30, 2018. Net charge-offs of $9 were recorded for the three-month period ended September 30, 2019 and a $1 net recovery was recorded for the three-month period ended September 30, 2018. The allowance for loan losses as a percentage of loans was 1.01% at September 30, 2019 and 1.03% at June 30, 2019. The provision for loan losses for the period ended September 30, 2019 was considered sufficient by management for maintaining an appropriate allowance for probable incurred credit losses.

Noninterest Income

Noninterest income decreased by $26, or 1.7%, for the first quarter of fiscal year 2020 from the same period last year. Noninterest income for the three months ended September 30, 2019 included a $106 gain on sale of securities compared with a $587 gain for the three months ended September 30, 2018. During the 2019 fiscal year, a pooled trust preferred security was sold because of the significant increase in the value of this security. The Corporation does not own any other securities of this type. For the three-month period ended September 30, 2019, $324 of income was recognized as a result of proceeds received from a bank owned life insurance policy claim. In addition, gains from the sale of mortgage loans increased by 36.4%, service charges on deposit accounts increased by 18.0% and debit card interchange income increased by 9.2% from the same prior year period.

Noninterest Expenses

Total noninterest expenses increased by $621, or by 16.9%, during the first quarter of fiscal year 2020 compared with the same year ago period primarily as a result of $317 of expenses associated with the expected merger between Consumers and Peoples. The expenses associated with the merger were primarily legal and consulting fees that were charged to professional and director fees and the system deconversion files that were charged to data processing expenses. Total noninterest expenses were also impacted by increases in salary and incentive expenses. FDIC assessments were positively impacted since the Small Bank Assessment Credits were applied to the current FDIC insurance invoice since the Deposit Insurance Fund reserve ratio was above 1.38%.

Income Taxes

Income tax expense was $212 for the three-month period ended September 30, 2019 compared to $322 for the three-month period ended September 30, 2018. The effective tax rate was 12.4% for the three-month period ended September 30, 2019 compared to 16.1% for the three-month period ended September 30, 2018. Income tax expense and the effective tax rate were lower in the 2020 fiscal year primarily due to a higher amount of tax-free income during the three-month period ended September 30, 2019.

Financial Condition

Total assets at September 30, 2019 were $565,187 compared to $553,936 at June 30, 2019, an increase of $11,251, or an annualized 8.1%.

Total loans increased by $14,645, or an annualized 15.9%, from $369,175 at June 30, 2019 to $383,820 at September 30, 2019. 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 $15,260, or an annualized 12.9%, 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, 2019			June 30, 2019			September 30, 2018
Non-accrual loans	$	444		$	785		$	1,053
Loans past due over 90 days and still accruing		—			—			1
Total non-performing loans		444			785			1,054
Other real estate owned		—			—			—
Total non-performing assets	$	444		$	785		$	1,054
Non-performing loans to total loans		0.12	%		0.21	%		0.32	%
Allowance for loan losses to total non-performing loans		880.41	%		482.55	%		335.67	%

As of September 30, 2019, impaired loans totaled $896, of which $444 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, 2019, net cash inflow from operating activities was $1,130, net cash outflows from investing activities was $6,648 and net cash inflows from financing activities was $8,559. A major source of cash was a $15,260 increase in deposits and $9,353 from sales, maturities, calls or principal pay downs on available-for-sale securities. A major use of cash was a $14,654 increase in loans. Total cash and cash equivalents were $12,502 as of September 30, 2019, compared to $9,461 at June 30, 2019 and $10,785 at September 30, 2018.

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 $487,434 at September 30, 2019 compared with $472,174 at June 30, 2019.

To provide an additional source of liquidity, the Corporation has entered into an agreement with the FHLB of Cincinnati. At September 30, 2019, advances from the FHLB of Cincinnati totaled $16,300 compared with $22,700 at June 30, 2019. As of September 30, 2019, the Bank had the ability to borrow an additional $29,966 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 $3,754 at September 30, 2019 and $3,686 at June 30, 2019.

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 $37,804 at September 30, 2019 and $39,034 at June 30, 2019. 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 $89,167 at September 30, 2019 and $86,265 at June 30, 2019.

Capital Resources

Total shareholders’ equity increased to $52,993 as of September 30, 2019 from $51,166 as of June 30, 2019. The increase was primarily the result of $1,503 of net income for the first quarter of fiscal year 2020 and $563 in accumulated other comprehensive income from an increase in the unrealized gains in the mark-to-market of available-for-sale securities. These increases were partially offset by cash dividends paid of $369.

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, 2019, the Bank’s common equity tier 1 capital and tier 1 capital ratios were 11.55% and the leverage and total capital ratios were 8.87% and 12.47%, respectively. This compares with common equity tier 1 capital and tier 1 capital ratios of 11.68% and leverage and total risk-based capital ratios of 8.88% and 12.60%, respectively, as of June 30, 2019. 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, 2019 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 four (Loans) and Management’s Discussion and Analysis of Financial Condition and Results of Operation (Critical Accounting Policies and Use of Significant Estimates) of the 2019 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, 2019.

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. These statements include statements relating to the proposed merger of Peoples Bancorp with and into Consumers, the risk that the proposed transaction may not be completed in a timely manner, or at all; the failure to satisfy the conditions precedent to the consummation of the proposed transaction; unanticipated difficulties or expenditures relating to the proposed transaction; legal proceedings, including those that may be instituted against Consumers, its board of directors, its executive officers and others; disruptions of current plans and operations caused by the announcement and pendency of the proposed transaction and the resulting integration of Peoples Bancorp with Consumers; potential difficulties in employee retention due to the announcement and pendency of the proposed transaction; any failure to meet expected cost savings, synergies and other financial and strategic benefits in connection with the proposed transaction within anticipated time frames or at all; the response of customers, suppliers and business partners to the announcement of the proposed transaction; and risks related to diverting management’s attention from Consumers’ ongoing business operations.  The words “may,” “continue,” “estimate,” “intend,” “plan,” “seek,” “will,” “believe,” “project,” “expect,” “anticipate” and similar expressions are intended to identify forward-looking statements.  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.

While the list of factors presented here is, and the Risk Factors starting on page 16 of the registration statement on Form S-4/A filed with the SEC on September 4, 2019 related to the merger of Consumers/Peoples are, considered representative no such list should be considered to be a complete statement of all potential risks and uncertainties. Unlisted factors may present significant additional obstacles to the realization of forward-looking statements.

27

CONSUMERS BANCORP, INC.

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, 2019.

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 3.1	Amended and Restated Articles of Incorporation of the Corporation.
Exhibit 11	Statement regarding Computation of Per Share Earnings (included in Note 6 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, 2019, 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 8, 2019	/s/ Ralph J. Lober
	Ralph J. Lober, II
	President & Chief Executive Officer
	(principal executive officer)
Date: November 8, 2019	/s/ Renee K. Wood
	Renee K. Wood
	Chief Financial Officer & Treasurer
	(principal financial officer)

30

EX-3.1

EXHIBIT 3.1

AMENDED AND RESTATED

(approved 10/17/19 – filed 11/4/19)

ARTICLES OF INCORPORATION

OF

CONSUMERS BANCORP, INC.

The undersigned, desiring to form a corporation for profit; under the General Corporation Law of Ohio, does hereby certify:

FIRST: The name of this Corporation shall be Consumers Bancorp, Inc.

SECOND: The place in Ohio where its principal office is to be located is Minerva, Stark County, Ohio.

THIRD: The purpose for which the Corporation is formed is to engage in any lawful act or activity for which corporations may be formed under Sections 1701.01 to 1701.98 of the Ohio Revised Code.

FOURTH: The aggregate number of shares of stock of all classes which the corporation shall have authority to issue is eight million eight hundred and fifty thousand shares (8,850,000), of which eight million five hundred thousand (8,500,000) shares shall be common stock with no par value (“Common Stock”) and of which three hundred fifty thousand (350,000) shares shall be preferred stock, with no par value (“Preferred Shares”).

The shares of such classes shall have the following express terms:

EXPRESS TERMS OF THE PREFERRED SHARES

(A) The Board of Directors of the corporation is hereby granted the authority, subject to the provisions of this FOURTH Article and to the limitations prescribed by law, to classify the unissued shares of Preferred Shares into one or more series of Preferred Shares and with respect to each such series to fix by resolution or resolutions providing for the issuance of such series the terms, including the preferences, rights and limitations, of such series. Each series shall consist of such number of shares as shall be stated in the resolution or resolutions providing for the issuance of such series together with such additional number of shares as the Board of Directors by resolution or resolutions may from time to time determine to issue as a part of the series. The Board of Directors may from time to time decrease the number of shares of any series of Preferred Shares (but not below the number thereof then outstanding) by providing that any unissued shares previously assigned to such series shall no longer constitute part thereof and restoring such unissued shares to the status of authorized but unissued shares of Preferred Shares.

The authority of the Board of Directors with respect to each series of Preferred Shares shall include, but not be limited to, the determination or fixing of the following:

(i)     The number of shares constituting such series, including the authority to increase or decrease such number, and the distinctive designation of the series.

(ii)     The dividend rate, if any, of the series, the conditions and dates upon which any dividends shall be payable, the relation which the dividends payable on the series shall bear to the dividends payable on any other class or classes of stock or any other series of Preferred Shares, and whether the dividends shall be cumulative, noncumulative or partially cumulative.

(iii)     Whether the shares of the series shall be subject to redemption by the Corporation and whether such redemption is at the option of the Corporation, the holder of shares of the series or any other person, and, if made subject to redemption, the times, prices and other terms and conditions of the redemption.

(iv)     The rights of the holders of the shares of the series upon the dissolution of, or upon the distribution of assets of, the Corporation, and the amount payable on the shares of the series in the event of voluntary or involuntary liquidation of the Corporation.

(v)     The terms and amount of any sinking fund provided for the purchase or redemption of the shares of the series.

(vi)     Whether or not the shares of the series shall be convertible into or exchangeable for shares of any other classes or of any other series of any class or classes of stock of the Corporation and, if provision be made for conversion or exchange, the times, prices, rates, adjustments, and other terms and conditions of the conversion or exchange.

(vii)     The extent, if any, to which the holders of the shares of the series shall be entitled to vote with respect to the election of directors or otherwise.

(viii)     Any other rights, preferences or limitations of the shares of such series as may be permitted by law.

The Board of Directors is authorized to adopt from time to time amendments to the Articles of Incorporation fixing, with respect to each such series, the matters described in clauses (i) through (viii), inclusive, of this Section A.

(B) The holders of shares of each series of Preferred Shares shall be senior to the Common Stock in payment of dividends and payment in respect of liquidation or dissolution.

(C) Except as otherwise required by law and except for such voting rights with respect to the election of directors or other matters as may be stated in the resolution or resolutions of the Board of Directors providing for the issuance of any series of Preferred Shares, no holder of any series of Preferred Shares shall have any right to vote shares of Preferred Shares on any matters voted upon by shareholders of the Corporation.

EXPRESS TERMS OF THE COMMON STOCK

The Common Stock shall be subject to the express terms of the Preferred Shares and any series thereof. Each share of Common Stock shall be equal to every other share of Common Stock and except as otherwise provided by law; the holders thereof shall be entitled to one vote for each share of such stock on all matters voted upon by shareholders of the Corporation. (approved 10/28/09, filed 12/16/09).

FIFTH: The number of Directors of the Corporation shall be fixed from time to time by its Code of Regulations and may be increased or decreased as therein provided, but the number thereof shall in no event be less than seven (7). The Board of Directors shall be divided into three (3) classes, as nearly equal in number as the then total number of Directors constituting the whole Board permits, it not being required that each class have the same number of members if such is mathematically impossible, with the term of office of one class expiring each year. At the Organization Meeting of Shareholders, Directors of the first class shall be elected to hold office for a term expiring at the next succeeding Annual Meeting, Directors of the second class shall be elected to hold office for a term expiring at the second succeeding Annual Meeting and Directors of the third class shall be elected to hold office for a term expiring at the third succeeding Annual Meeting. Thereafter, at each Annual Meeting of shareholders the successors to the class of Directors whose term shall then expire shall be elected to hold office for a term expiring at the third succeeding Annual Meeting after such election. In the event of any increase in the number of Directors of the Corporation, the additional Directors shall be so classified that all classes of Directors shall be increased equally as nearly as may be possible. In the event of any decrease in the number of Directors of the Corporation, all classes of Directors shall be decrease equally as nearly as possible and, if necessary to comply with Ohio law concerning the minimum number of Directors permitted to constitute a class of Directors, the number of classes of Directors shall be decreased.

SIXTH: (A) Except as otherwise provided in Clause (B) of this Article SIXTH:

(i) any merger or consolidation of the Corporation with or into any other corporation;

(ii) any sale, lease, exchange or other disposition of all or any substantial part of the assets of the Corporation to or with any other corporation, person or other entity;

(iii) the issuance or transfer of any securities of the Corporation by the Corporation to any other corporation, person or other entity for cash;

shall require the affirmative vote of the holders of at least eighty percent (80%) of the outstanding shares of capital stock of the Corporation which are not beneficially owned by such other corporation, person or other entity if, as of the record date for the determination of shareholders entitled to notice thereof and to vote thereon, such other corporation, person or entity is the beneficial owner, directly or indirectly, of 10% or more of the outstanding shares of capital stock of the Corporation entitled to vote generally in the election of Directors, considered for the purposes of this Article SIXTH as one class. Such affirmative vote shall be required notwithstanding the fact that no vote may be required, or that some lesser percentage may be specified, by law or in any agreement with any national securities exchange.

(B) The provisions of this Article SIXTH shall not apply to any transaction described in clauses (i), (ii) or (iii) of Clause (A) of this Article SIXTH, (i) with another corporation if a majority, by vote, of the outstanding shares of all classes of capital stock of such other corporation entitled to vote generally in the election of Directors, considered for this purpose as one class, is owned of record or beneficially by the Corporation and/or its subsidiaries; (ii) with another corporation, person or other entity if the Board of Directors of the Corporation shall by resolution have approved a memorandum of understanding with such other corporation, person or other entity with respect to and substantially consistent with such transaction prior to the time such other corporation, person or other entity became the beneficial owner, directly or indirectly, of 10% or more of the outstanding shares of capital stock of the Corporation entitled to vote generally in the election of Directors; (iii) approved by resolution adopted by the affirmative vote of at least a majority of the members of the whole Board of Directors of the Corporation at any time prior to the consummation thereof; (iv) with another corporation, person or other entity if, as of the date of the amendment of these Articles of Incorporation to include this Article SIXTH, such corporation, person or entity owned 10% or more of the outstanding shares of capital stock of the Corporation entitled to vote in the election of Directors; or (v) with another corporation, person or entity if such corporation, person or entity is an heir, devisee or assign of a shareholder described in (iv) above that, as a result of such inheritance, devise or assignment from a shareholder described in (iv) above, owns 10% or more of the capital stock of the Corporation entitled to vote in the election of the Directors.

(C) For the purposes of this Article SIXTH, a corporation, person or other entity shall be deemed to be the beneficial owner of any shares of capital stock of the corporation (i) which it has the right to acquire pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise; or (ii) which are beneficially owned, directly or indirectly (including shares deemed owned through application of clause (i) above), by any other corporation, person or other entity with which it or its "affiliate" or "associate" (as defined below) has any agreement, arrangement or understanding for the purpose of acquiring, holding, voting or disposing of capital stock of the Corporation, or which is its "affiliate" or "associate" as those terms were defined in Rule 12b-2 of the general rules and regulations under the Securities Exchange Act of 1934. For the purposes of this Article SIXTH, the outstanding shares of any class of capital stock of the Corporation shall include shares deemed owned through the application of clauses (i) and (ii) of this Clause (C) but shall not include any other shares which may be issuable pursuant to any agreement, or upon exercise of conversion rights, warrants or options, or otherwise.

(D) The Board of Directors of the Corporation shall have the power and duty to determine for the purposes of this Article SIXTH, on the basis of information then known to it, whether (i) any other corporation, person or other entity beneficially owns, directly or indirectly, 10% or more of the outstanding shares of capital stock of the Corporation entitled to vote generally in the election of Directors, or is an "affiliate" or an "associate" (as defined above) of another, (ii) any proposed sale, lease, exchange or other disposition of part of the assets of the Corporation involves a substantial part of the assets of the Corporation, and (iii) the memorandum of understanding referred to above is substantially consistent with the transaction to which it relates. Any such determination by the Board shall be conclusive and binding for all purposes of this Article SIXTH.

SEVENTH: The Board of Directors of the Corporation, when evaluating any offer of another party to (i) purchase or exchange any securities of property for any outstanding equity securities of the Corporation, (ii) merge or consolidate the Corporation with another corporation, or (iii) purchase or otherwise acquire all of substantially of the properties and assets of the Corporation, shall, in connection with the exercise of its judgment in determining what is in the best interests of the Corporation and its shareholder, give due consideration not only to the price or other consideration being offered but also to all other relevant factors, including without limitation the financial and managerial resources and future prospects and its subsidiaries and other depositors, employees, and other constituents of the Corporation and its subsidiaries; and the possible effects on the communities and the public interest which the Corporation and its subsidiaries serve. In evaluation any such offer, the Board of Directors shall be deemed to be performing their duly authorized duties and acting in good faith and in the best interests of the Corporation within the meaning of Section 1701.13 of the Ohio Revised Code as it may be amended from time to time, and the Corporation's Code of Regulations.

EIGHTH: When authorized by the affirmative vote of a majority of the Board of Directors, without the action of approval of the shareholders of this Corporation, this Corporation may redeem, purchase, or contract to purchase at any time and from time to time, shares of any class issued by this Corporation for such prices and upon and subject to such terms and conditions as the Board of Directors may determine.

NINTH: The statutes of Ohio require that action on certain specified matters at a shareholders' meeting shall be taken by the affirmative vote of the holders of more than a majority of shares entitled to vote thereon, unless other provision is made in the Articles of Incorporation. On all these specified matters, action may be taken by the affirmative vote of a two-thirds majority of shares entitled to vote thereon or, if the vote is required to be by classes, by the affirmative vote of a two-thirds majority of each class of shares entitled to vote thereon as a class, except that any amendment, alteration, addition to or repeal of Article SIXTH or this Article NINTH and of any of the matters specified above in Article SIXTH as requiring a vote other than the affirmative vote of the holders of a two-thirds majority of the shares entitled to vote thereon, may only be taken by the affirmative vote of the holders of at least eighty percent (80%) of the outstanding shares of capital stock of the Corporation entitled to vote thereon, considered for the purposes of this Article as one class.

TENTH: The holder of any share or shares of any class issued by the Corporation shall, upon the offering or sale for cash of shares of the same class by the Corporation, have the right to purchase, during a reasonable time and pursuant to reasonable terms fixed by the Board of Directors, shares in proportion to that shareholder's respective holdings of shares of such class, unless the shares offered or sold by the Corporation are in any of categories precluded from such pre-emptive rights pursuant to Section 1701.15 of the Ohio Revised Code.

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 8, 2019	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 8, 2019	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, 2019 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 8, 2019

/s/ Ralph J. Lober

Ralph J. Lober, II

President & Chief Executive Officer

/s/ Renee K. Wood

Renee K. Wood

Chief Financial Officer & Treasurer

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Note 8 - Revenue Recognition (Tables)

3 Months Ended

Sep. 30, 2019

Notes Tables

Disaggregation of Revenue [Table Text Block]

	For the three months ended September 30,
	2019		2018
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	373	$	316
Debit card interchange income		391		358
Other income		396		66
Noninterest income (in scope of Topic 606)		1,160		740
Noninterest income (out-of-scope of Topic 606)		309		755
Total noninterest income	$	1,469	$	1,495

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Note 4 - Loans (Tables)

3 Months Ended

Sep. 30, 2019

Notes Tables

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

	September 30, 2019			June 30, 2019
Commercial	$	81,782		$	80,453
Commercial real estate:
Construction		14,583			16,120
Other		205,214			195,269
1 – 4 Family residential real estate:
Owner occupied		58,406			55,941
Non-owner occupied		14,936			14,517
Construction		3,115			1,931
Consumer		5,912			5,150
Subtotal		383,948			369,381
Net Deferred loan fees and costs		(128	)		(206	)
Allowance for loan losses		(3,909	)		(3,788	)
Net Loans	$	379,911		$	365,387

Financing Receivable, Allowance for Credit Loss [Table Text Block]

						1-4 Family
				Commercial		Residential
				Real		Real
	Commercial			Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	660		$	2,575	$	494	$	59		$	3,788
Provision for loan losses		(11	)		69		56		16			130
Loans charged-off		—			—		—		(16	)		(16	)
Recoveries		—			1		—		6			7
Total ending allowance balance	$	649		$	2,645	$	550	$	65		$	3,909

					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:
Ending allowance balance attributable to loans:
Individually evaluated for impairment	$	2	$	7	$	—	$	—	$	9
Collectively evaluated for impairment		647		2,638		550		65		3,900
Total ending allowance balance	$	649	$	2,645	$	550	$	65	$	3,909
Recorded investment in loans:
Loans individually evaluated for impairment	$	167	$	460	$	266	$	—	$	893
Loans collectively evaluated for impairment		81,639		219,298		76,822		5,932		383,691
Total ending loans balance	$	81,806	$	219,758	$	77,088	$	5,932	$	384,584

					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	$	2	$	7	$	—	$	—	$	9
Collectively evaluated for impairment		658		2,568		494		59		3,779
Total ending allowance balance	$	660	$	2,575	$	494	$	59	$	3,788
Recorded investment in loans:
Loans individually evaluated for impairment	$	174	$	658	$	357	$	—	$	1,189
Loans collectively evaluated for impairment		80,413		210,709		72,591		5,164		368,877
Total ending loans balance	$	80,587	$	211,367	$	72,948	$	5,164	$	370,066

Impaired Financing Receivables [Table Text Block]

	As of September 30, 2019						Three Months ended September 30, 2019
	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 real estate:
Other	$	316		240	$	—	$	362	$	86	$	86
1-4 Family residential real estate:
Owner occupied		43		12		—		39		7		7
Non-owner occupied		292		255		—		257		—		—
With an allowance recorded:
Commercial real estate:
Other		218		220		7		220		3		3
Commercial		167		169		2		170		3		3
Total	$	1,036	$	896	$	9	$	1,048	$	99	$	99

	As of June 30, 2019						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	$	—	$	—	$	—	$	71	$	1	$	1
Commercial real estate:
Other		580		436		—		1,369		11		11
1-4 Family residential real estate:
Owner occupied		124		93		—		99		—		—
Non-owner occupied		297		264		—		292		—		—
With an allowance recorded:
Commercial real estate:
Other		221		222		7		231		3		3
Commercial		173		174		2		—		—		—
Total	$	1,395	$	1,189	$	9	$	2,062	$	15	$	15

Financing Receivable, Past Due [Table Text Block]

	September 30, 2019				June 30, 2019
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial real estate:
Other	$	185	$	—	$	436	$	—
1 – 4 Family residential:
Owner occupied		5		—		85		—
Non-owner occupied		254		—		264		—
Total	$	444	$	—	$	785	$	—

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	—	$	—	$	—	$	—	$	81,806	$	81,806
Commercial real estate:
Construction		—		—		—		—		14,540		14,540
Other		—		8		—		8		205,210		205,218
1-4 Family residential:
Owner occupied		—		5		—		5		58,974		58,979
Non-owner occupied		—		—		—		—		14,936		14,936
Construction		—		—		—		—		3,173		3,173
Consumer		16		—		—		16		5,916		5,932
Total	$	16	$	13	$	—	$	29	$	384,555	$	384,584

	Days Past Due
	30 - 59		60 - 89		90 Days or		Total		Loans Not
	Days		Days		Greater		Past Due		Past Due		Total
Commercial	$	—	$	—	$	—	$	—	$	80,587	$	80,587
Commercial real estate:
Construction		—		—		—		—		16,075		16,075
Other		199		—		—		199		195,093		195,292
1-4 Family residential:
Owner occupied		40		—		80		120		56,347		56,467
Non-owner occupied		—		—		—		—		14,518		14,518
Construction		—		—		—		—		1,963		1,963
Consumer		1		—		—		1		5,163		5,164
Total	$	240	$	—	$	80	$	320	$	369,746	$	370,066

Financing Receivable Credit Quality Indicators [Table Text Block]

	As of September 30, 2019
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	76,118	$	4,448	$	959	$	—	$	281
Commercial real estate:
Construction		14,540		—		—		—		—
Other		191,044		6,741		5,308		185		1,940
1-4 Family residential real estate:
Owner occupied		2,192		—		23		4		56,760
Non-owner occupied		13,823		200		311		255		347
Construction		105		—		—		—		3,068
Consumer		24		—		—		—		5,908
Total	$	297,846	$	11,389	$	6,601	$	444	$	68,304

	As of June 30, 2019
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	74,393	$	4,942	$	1,012	$	—	$	240
Commercial real estate:
Construction		16,075		—		—		—		—
Other		179,952		8,071		5,337		436		1,496
1-4 Family residential real estate:
Owner occupied		2,245		—		24		5		54,193
Non-owner occupied		13,413		205		318		263		319
Construction		—		—		—		—		1,963
Consumer		32		—		—		—		5,132
Total	$	286,110	$	13,218	$	6,691	$	704	$	63,343

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Note 3 - Securities (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Available-for-sale Securities Income Tax Provision on Gross Realized Gains	$ 22	$ 124

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Note 9 - Leases - Maturities of Lease Liabilities (Details) $ in Thousands	Sep. 30, 2019 USD ($)
2020	$ 82
2021	105
2022	95
2023	76
2024	51
Thereafter	146
Total	$ 555

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Note 5 - Fair Value - Financial Assets and Liabilities Measured at Fair Value on a Non-recurring Basis (Details) - Commercial Real Estate - Other [Member] - Fair Value, Nonrecurring [Member] - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Fair Value	$ 55	$ 59
Fair Value, Inputs, Level 1 [Member]
Fair Value
Fair Value, Inputs, Level 2 [Member]
Fair Value
Fair Value, Inputs, Level 3 [Member]
Fair Value	$ 55	$ 59

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Note 6 - Earnings Per Share - Schedule of Earnings Per Share, Basic and Diluted (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Net income available to common shareholders	$ 1,503	$ 1,673
Weighted average common shares outstanding (in shares)	2,734,578	2,729,103
Basic income per share (in dollars per share)	$ 0.55	$ 0.61
Net income available to common shareholders	$ 1,503	$ 1,673
Dilutive effect of restricted stock (in shares)		68
Total common shares and dilutive potential common shares (in shares)	2,734,578	2,729,171
Dilutive income per share (in dollars per share)	$ 0.55	$ 0.61

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Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) $ in Thousands	USD ($) $ / shares
Balance at beginning of period at Jun. 30, 2018	$ 43,761
Net income	1,673
Other comprehensive income (loss)	(1,168)
11,813 and 4,201 shares issued associated with stock awards during the three months ended September 30, 2019 and 2018, respectively	59
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
Balance at beginning of period at Jun. 30, 2019	$ 51,166
Net income	1,503
Other comprehensive income (loss)	563
11,813 and 4,201 shares issued associated with stock awards during the three months ended September 30, 2019 and 2018, respectively	130
Common cash dividends	(369)
Balance at the end of the period at Sep. 30, 2019	$ 52,993
Common cash dividends per share (in dollars per share) | $ / shares	$ 0.135

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Consolidated Balance Sheets (Current Period Unaudited) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
ASSETS
Cash on hand and noninterest-bearing deposits in financial institutions	$ 11,642	$ 9,322
Federal funds sold and interest-bearing deposits in financial institutions	860	139
Total cash and cash equivalents	12,502	9,461
Certificates of deposit in other financial institutions	1,493	1,983
Securities, available-for-sale	137,603	144,010
Securities, held-to-maturity (fair value of $3,764 at September 30, 2019 and $3,821 at June 30, 2019)	3,686	3,786
Federal bank and other restricted stocks, at cost	1,723	1,723
Loans held for sale	2,436	1,657
Total loans	383,820	369,175
Less allowance for loan losses	(3,909)	(3,788)
Net loans	379,911	365,387
Cash surrender value of life insurance	9,245	9,606
Premises and equipment, net	14,539	14,155
Accrued interest receivable and other assets	2,049	2,168
Total assets	565,187	553,936
LIABILITIES
Noninterest-bearing demand	122,196	116,239
Interest bearing demand	86,887	81,469
Savings	166,937	162,261
Time	111,414	112,205
Total deposits	487,434	472,174
Short-term borrowings	3,754	3,686
Federal Home Loan Bank advances	16,300	22,700
Accrued interest and other liabilities	4,706	4,210
Total liabilities	512,194	502,770
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, 2019 and June 30, 2019)	14,697	14,656
Retained earnings	37,621	36,487
Treasury stock, at cost (108,475 and 120,288 common shares as of September 30, 2019 and June 30, 2019, respectively)	(1,454)	(1,543)
Accumulated other comprehensive income	2,129	1,566
Total shareholders’ equity	52,993	51,166
Total liabilities and shareholders’ equity	$ 565,187	$ 553,936

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Note 5 - Fair Value (Details Textual) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Other Real Estate Owned, Fair Value Disclosure	$ 0		$ 0
Impaired Financing Receivable, Recorded Investment, Total	896		1,189
Impaired Financing Receivable, Related Allowance	9		9
Fair Value, Nonrecurring [Member] | Impaired Loans [Member]
Impaired Financing Receivable, Recorded Investment, Total	55		59
Impaired Financing Receivable, Related Allowance	0		$ 0
Allowance for Loan and Lease Losses, Period Increase (Decrease), Total	$ 0	$ 0

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Note 3 - Securities - Amortized Cost and Fair Values of Debt Securities by Contractual Maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Amortized Cost Basis	$ 5,362
Available-for-sale Securities, Debt Maturities, Next Twelve Months, Fair Value	5,382
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Amortized Cost Basis	14,540
Available-for-sale Securities, Debt Maturities, Year Two Through Five, Fair Value	14,802
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Amortized Cost Basis	23,261
Available-for-sale Securities, Debt Maturities, Year Six Through Ten, Fair Value	23,727
Available-for-sale Securities, Debt Maturities, after Ten Years, Amortized Cost Basis	27,220
Available-for-sale Securities, Debt Maturities, after Ten Years, Fair Value	28,605
Available-for-sale Securities, Debt Maturities, Single Maturity Date, Amortized Cost Basis	70,383
Available-for-sale Securities, Debt Maturities, Single Maturity Date	72,516
Total available-for-sale securities, Amortized Cost Basis	134,909	$ 142,028
Total available-for-sale securities	137,603	144,010
Held-to-maturity Securities, Debt Maturities, after Five Through Ten Years, Net Carrying Amount	451
Held-to-maturity Securities, Debt Maturities, Year Five Through Ten Years, Fair Value	472
Held-to-maturity Securities, Debt Maturities, after Ten Years, Net Carrying Amount	3,235
Held-to-maturity Securities, Debt Maturities, after Ten Years, Fair Value	3,292
Held-to-maturity Securities	3,686	3,786
Total held-to-maturity securities, Fair Value	3,764	$ 3,821
U.S. Government-sponsored Mortgage-backed and Related Securities [Member]
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Amortized Cost Basis	64,526
Available-for-sale Securities, Debt Maturities, without Single Maturity Date, Fair Value	$ 65,087

XML

Note 4 - Loans - Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018
Beginning balance	$ 3,788	$ 3,422
Provision for loan losses	130	115
Loans charged-off	(16)	(7)
Recoveries	7	8
Individually evaluated for impairment			$ 9	$ 9
Collectively evaluated for impairment			3,900	3,779
Total ending allowance balance	3,788	3,422	3,909	3,788	$ 3,538
Loans individually evaluated for impairment			893	1,189
Loans collectively evaluated for impairment			383,691	368,877
Total ending loans balance			384,584	370,066
Commercial Portfolio Segment [Member]
Beginning balance	660	586
Provision for loan losses	(11)	16
Loans charged-off
Recoveries
Individually evaluated for impairment			2	2
Collectively evaluated for impairment			647	658
Total ending allowance balance	660	586	649	660	602
Loans individually evaluated for impairment			167	174
Loans collectively evaluated for impairment			81,639	80,413
Total ending loans balance			81,806	80,587
Commercial Real Estate Portfolio Segment [Member]
Beginning balance	2,575	2,277
Provision for loan losses	69	100
Loans charged-off
Recoveries	1	1
Individually evaluated for impairment			7	7
Collectively evaluated for impairment			2,638	2,568
Total ending allowance balance	2,575	2,277	2,645	2,575	2,378
Loans individually evaluated for impairment			460	658
Loans collectively evaluated for impairment			219,298	210,709
Total ending loans balance			219,758	211,367
Residential Portfolio Segment [Member]
Beginning balance	494	499
Provision for loan losses	56	5
Loans charged-off
Recoveries		3
Individually evaluated for impairment
Collectively evaluated for impairment			550	494
Total ending allowance balance	494	499	550	494	507
Loans individually evaluated for impairment			266	357
Loans collectively evaluated for impairment			76,822	72,591
Total ending loans balance			77,088	72,948
Consumer Portfolio Segment [Member]
Beginning balance	59	60
Provision for loan losses	16	(6)
Loans charged-off	(16)	(7)
Recoveries	6	4
Individually evaluated for impairment
Collectively evaluated for impairment			65	59
Total ending allowance balance	$ 59	$ 60	65	59	$ 51
Loans individually evaluated for impairment
Loans collectively evaluated for impairment			5,932	5,164
Total ending loans balance			$ 5,932	$ 5,164

XML

Note 8 - Revenue Recognition

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Revenue from Contract with Customer [Text Block]

Note

8

– 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, 2019

and

2018.

	For the three months ended September 30,
	2019		2018
Noninterest income
In scope of Topic 606:
Service charges on deposit accounts	$	373	$	316
Debit card interchange income		391		358
Other income		396		66
Noninterest income (in scope of Topic 606)		1,160		740
Noninterest income (out-of-scope of Topic 606)		309		755
Total noninterest income	$	1,469	$	1,495

XML

Note 4 - Loans

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

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

Note

4

– Loans

Major classifications of loans were as follows:

	September 30, 2019			June 30, 2019
Commercial	$	81,782		$	80,453
Commercial real estate:
Construction		14,583			16,120
Other		205,214			195,269
1 – 4 Family residential real estate:
Owner occupied		58,406			55,941
Non-owner occupied		14,936			14,517
Construction		3,115			1,931
Consumer		5,912			5,150
Subtotal		383,948			369,381
Net Deferred loan fees and costs		(128	)		(206	)
Allowance for loan losses		(3,909	)		(3,788	)
Net Loans	$	379,911		$	365,387

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

three

months ended

September 30, 2019:

						1-4 Family
				Commercial		Residential
				Real		Real
	Commercial			Estate		Estate		Consumer			Total
Allowance for loan losses:
Beginning balance	$	660		$	2,575	$	494	$	59		$	3,788
Provision for loan losses		(11	)		69		56		16			130
Loans charged-off		—			—		—		(16	)		(16	)
Recoveries		—			1		—		6			7
Total ending allowance balance	$	649		$	2,645	$	550	$	65		$	3,909

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 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, 2019.

Included in the recorded investment in loans is

$764

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	$	2	$	7	$	—	$	—	$	9
Collectively evaluated for impairment		647		2,638		550		65		3,900
Total ending allowance balance	$	649	$	2,645	$	550	$	65	$	3,909
Recorded investment in loans:
Loans individually evaluated for impairment	$	167	$	460	$	266	$	—	$	893
Loans collectively evaluated for impairment		81,639		219,298		76,822		5,932		383,691
Total ending loans balance	$	81,806	$	219,758	$	77,088	$	5,932	$	384,584

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, 2019.

Included in the recorded investment in loans is

$891

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	$	2	$	7	$	—	$	—	$	9
Collectively evaluated for impairment		658		2,568		494		59		3,779
Total ending allowance balance	$	660	$	2,575	$	494	$	59	$	3,788
Recorded investment in loans:
Loans individually evaluated for impairment	$	174	$	658	$	357	$	—	$	1,189
Loans collectively evaluated for impairment		80,413		210,709		72,591		5,164		368,877
Total ending loans balance	$	80,587	$	211,367	$	72,948	$	5,164	$	370,066

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, 2019

and for the

three

months ended

September 30, 2019:

	As of September 30, 2019						Three Months ended September 30, 2019
	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 real estate:
Other	$	316		240	$	—	$	362	$	86	$	86
1-4 Family residential real estate:
Owner occupied		43		12		—		39		7		7
Non-owner occupied		292		255		—		257		—		—
With an allowance recorded:
Commercial real estate:
Other		218		220		7		220		3		3
Commercial		167		169		2		170		3		3
Total	$	1,036	$	896	$	9	$	1,048	$	99	$	99

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, 2019

and for the

three

months ended

September 30, 2018:

	As of June 30, 2019						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	$	—	$	—	$	—	$	71	$	1	$	1
Commercial real estate:
Other		580		436		—		1,369		11		11
1-4 Family residential real estate:
Owner occupied		124		93		—		99		—		—
Non-owner occupied		297		264		—		292		—		—
With an allowance recorded:
Commercial real estate:
Other		221		222		7		231		3		3
Commercial		173		174		2		—		—		—
Total	$	1,395	$	1,189	$	9	$	2,062	$	15	$	15

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, 2019

and

June 30, 2019:

	September 30, 2019				June 30, 2019
			Loans Past Due				Loans Past Due
			Over 90 Days				Over 90 Days
			Still				Still
	Non-accrual		Accruing		Non-accrual		Accruing
Commercial real estate:
Other	$	185	$	—	$	436	$	—
1 – 4 Family residential:
Owner occupied		5		—		85		—
Non-owner occupied		254		—		264		—
Total	$	444	$	—	$	785	$	—

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, 2019

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	$	—	$	—	$	—	$	—	$	81,806	$	81,806
Commercial real estate:
Construction		—		—		—		—		14,540		14,540
Other		—		8		—		8		205,210		205,218
1-4 Family residential:
Owner occupied		—		5		—		5		58,974		58,979
Non-owner occupied		—		—		—		—		14,936		14,936
Construction		—		—		—		—		3,173		3,173
Consumer		16		—		—		16		5,916		5,932
Total	$	16	$	13	$	—	$	29	$	384,555	$	384,584

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

$13

in the

60

-

89

days category and

$431

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, 2019

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	$	—	$	—	$	—	$	—	$	80,587	$	80,587
Commercial real estate:
Construction		—		—		—		—		16,075		16,075
Other		199		—		—		199		195,093		195,292
1-4 Family residential:
Owner occupied		40		—		80		120		56,347		56,467
Non-owner occupied		—		—		—		—		14,518		14,518
Construction		—		—		—		—		1,963		1,963
Consumer		1		—		—		1		5,163		5,164
Total	$	240	$	—	$	80	$	320	$	369,746	$	370,066

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

$198

in the

30

-

59

days,

$80

in the

90

days or greater category and

$507

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, 2019

and

June 30, 2019,

the Corporation had

$706

and

$725,

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

September 30, 2019,

the Corporation had

not

committed to lend any additional funds to customers with outstanding loans that were classified as troubled debt restructurings. As of

June 30, 2019,

the Corporation had committed to lend an additional

$9

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

September 30, 2019

and

June 30, 2019,

the Corporation had

$9

of specific reserves allocated to these loans.

During the

three

-month periods ended

September 30, 2019

and

2018,

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, 2019

and

2018.

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, 2019

and

2018.

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, 2019
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	76,118	$	4,448	$	959	$	—	$	281
Commercial real estate:
Construction		14,540		—		—		—		—
Other		191,044		6,741		5,308		185		1,940
1-4 Family residential real estate:
Owner occupied		2,192		—		23		4		56,760
Non-owner occupied		13,823		200		311		255		347
Construction		105		—		—		—		3,068
Consumer		24		—		—		—		5,908
Total	$	297,846	$	11,389	$	6,601	$	444	$	68,304

As of

June 30, 2019,

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

	As of June 30, 2019
			Special						Not
	Pass		Mention		Substandard		Doubtful		Rated
Commercial	$	74,393	$	4,942	$	1,012	$	—	$	240
Commercial real estate:
Construction		16,075		—		—		—		—
Other		179,952		8,071		5,337		436		1,496
1-4 Family residential real estate:
Owner occupied		2,245		—		24		5		54,193
Non-owner occupied		13,413		205		318		263		319
Construction		—		—		—		—		1,963
Consumer		32		—		—		—		5,132
Total	$	286,110	$	13,218	$	6,691	$	704	$	63,343

XML

Condensed Consolidated Statements of Changes in Shareholders' Equity (Unaudited) (Parentheticals) - shares	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Shares associated with stock awards (in shares)	11,813	4,201

XML

Consolidated Balance Sheets (Current Period Unaudited) (Parentheticals) - USD ($) $ / shares in Thousands, $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Held-to-maturity securities, fair value	$ 3,764	$ 3,821
Preferred stock, par value (in dollars per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	350,000	350,000
Preferred stock, shares outstanding (in shares)	0	0
Common stock, par value (in dollars per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	3,500,000	3,500,000
Common stock, shares issued (in shares)	2,854,133	2,854,133
Treasury stock, shares (in shares)	108,475	120,288

XML

Note 3 - Securities - Proceeds From Sales and Calls of Available-for-sale Securities (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Proceeds from sales and calls	$ 4,460	$ 2,573
Gross realized gains	106	593
Gross realized losses		$ 6

XML

Note 4 - Loans - Major Classifications (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019	Sep. 30, 2018	Jun. 30, 2018
Loans Receivable, Gross	$ 383,948	$ 369,381
Net Deferred loan fees and costs	(128)	(206)
Allowance for loan losses	(3,909)	(3,788)	$ (3,538)	$ (3,422)
Net Loans	379,911	365,387
Commercial Portfolio Segment [Member]
Loans Receivable, Gross	81,782	80,453
Allowance for loan losses	(649)	(660)	(602)	(586)
Commercial Real Estate Portfolio Segment [Member]
Allowance for loan losses	(2,645)	(2,575)	(2,378)	(2,277)
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Loans Receivable, Gross	14,583	16,120
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member]
Loans Receivable, Gross	205,214	195,269
Residential Portfolio Segment [Member]
Allowance for loan losses	(550)	(494)	(507)	(499)
Residential Portfolio Segment [Member] | Construction Loans [Member]
Loans Receivable, Gross	3,115	1,931
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member]
Loans Receivable, Gross	58,406	55,941
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Loans Receivable, Gross	14,936	14,517
Consumer Portfolio Segment [Member]
Loans Receivable, Gross	5,912	5,150
Allowance for loan losses	$ (65)	$ (59)	$ (51)	$ (60)

XML

Note 4 - Loans - Recorded Investment by Risk Category (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Pass [Member]
Financing Receivable, Net	$ 297,846	$ 286,110
Special Mention [Member]
Financing Receivable, Net	11,389	13,218
Substandard [Member]
Financing Receivable, Net	6,601	6,691
Doubtful [Member]
Financing Receivable, Net	444	704
Not Rated [Member]
Financing Receivable, Net	68,304	63,343
Commercial Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Net	76,118	74,393
Commercial Portfolio Segment [Member] | Special Mention [Member]
Financing Receivable, Net	4,448	4,942
Commercial Portfolio Segment [Member] | Substandard [Member]
Financing Receivable, Net	959	1,012
Commercial Portfolio Segment [Member] | Doubtful [Member]
Financing Receivable, Net
Commercial Portfolio Segment [Member] | Not Rated [Member]
Financing Receivable, Net	281	240
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member]
Financing Receivable, Net	14,540	16,075
Commercial Real Estate Portfolio Segment [Member] | Pass [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Net	191,044	179,952
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	6,741	8,071
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	5,308	5,337
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	185	436
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	1,940	1,496
Residential Portfolio Segment [Member] | Pass [Member] | Construction Loans [Member]
Financing Receivable, Net	105
Residential Portfolio Segment [Member] | Pass [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	2,192	2,245
Residential Portfolio Segment [Member] | Pass [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	13,823	13,413
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
Residential Portfolio Segment [Member] | Special Mention [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	200	205
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	23	24
Residential Portfolio Segment [Member] | Substandard [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	311	318
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	4	5
Residential Portfolio Segment [Member] | Doubtful [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	255	263
Residential Portfolio Segment [Member] | Not Rated [Member] | Construction Loans [Member]
Financing Receivable, Net	3,068	1,963
Residential Portfolio Segment [Member] | Not Rated [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Net	56,760	54,193
Residential Portfolio Segment [Member] | Not Rated [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Net	347	319
Consumer Portfolio Segment [Member] | Pass [Member]
Financing Receivable, Net	24	32
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	$ 5,908	$ 5,132

XML

Note 9 - Leases

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Lessee, Operating Leases [Text Block]

Note

9

– Leases

Effective

July 1, 2019,

the Corporation adopted ASU

2016

-

02,

Leases (Topic

842

). As of

September 30, 2019,

the Corporation leases real estate for

six

office locations and various equipment under operating lease agreements. The lease agreements have maturity dates ranging from

one

year or less to

September 1, 2028,

including extension periods. Lease agreements for

four

locations have a lease term of

12

months or less and are therefore considered short-term leases and are exempt from Topic

842.

The weighted average remaining life of the lease term for the leases with a term over

12

months was

60.92

years as of

September 30, 2019.

Costs associated with operating leases accounted for under Topic

842

was

$27

and the cost of short-term leases was

$22

for the

three

months ended

September 30, 2019.

The right-of-use asset, included in premises and equipment, and lease liability, included in other liabilities, were

$555

as of

September 30, 2019.

Total estimated rental commitments for the operating leases within the scope of Topic

842

were as follows as of

September 30, 2019:

Period Ending June 30
2020	$	82
2021		105
2022		95
2023		76
2024		51
Thereafter		146
Total	$	555

XML

Note 5 - Fair Value

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Fair Value Disclosures [Text Block]

Note

5

- 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, 2019 Using
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	14,817	$	—	$	14,817	$	—
Obligations of states and political subdivisions		57,699		—		57,699		—
U.S. Government-sponsored mortgage-backed securities – residential		54,864		—		54,864		—
U.S. Government-sponsored mortgage-backed securities – commercial		1,660		—		1,660		—
U.S. Government-sponsored collateralized mortgage obligations - residential		8,563		—		8,563		—

			Fair Value Measurements at June 30, 2019 Using
	Balance at June 30, 2019		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of government-sponsored entities	$	19,513	$	—	$	19,513	$	—
Obligations of states and political subdivisions		57,929		—		57,929		—
U.S. Government-sponsored mortgage-backed securities - residential		56,311		—		56,311		—
U.S. Government-sponsored collateralized mortgage obligations		10,257		—		10,257		—

There were

no

transfers between Level

1

and Level

2

during the

three

-month periods ended

September 30, 2019

or

2018.

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 was

no

other real estate owned being carried at fair value as of

September 30, 2019

or

June 30, 2019.

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

September 30, 2019

and

June 30, 2019

are summarized below: 

			Fair Value Measurements at September 30, 2019 Using
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	55	$	—	$	—	$	55

			Fair Value Measurements at June 30, 2019 Using
	Balance at June 30, 2019		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	59	$	—	$	—	$	59

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

$55,

with

no

valuation allowance at

September 30, 2019.

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

$59,

with

no

valuation allowance at

June 30, 2019.

There was

no

impact to the provision for loan losses for the

three

months ended

September 30, 2019

and

2018.

The following tables presents quantitative information about Level

3

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

September 30, 2019

and

June 30, 2019:

September 30, 2019	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	55	Settlement Agreement		N/A		0.0	%		0.0	%

June 30, 2019	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	59	Settlement Agreement		N/A		0.0	%		0.0	%

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

	September 30 , 2019				June 30, 201 9
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	12,502	$	12,502	$	9,461	$	9,461
Level 2 inputs:
Certificates of deposits in other financial institutions		1,493		1,495		1,983		1,983
Loans held for sale		2,436		2,485		1,657		1,687
Accrued interest receivable		1,547		1,547		1,607		1,607
Level 3 inputs:
Securities held-to-maturity		3,686		3,764		3,786		3,821
Loans, net		379,911		385,670		365,387		366,911
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		376,020		376,020		359,969		359,969
Time deposits		111,414		112,141		112,205		112,841
Short-term borrowings		3,754		3,754		3,686		3,686
Federal Home Loan Bank advances		16,300		16,287		22,700		22,596
Accrued interest payable		117		117		132		132

XML

Note 3 - Securities - Amortized Cost and Fair Value of Securities Available-for-sale and Securities Held-to-maturity (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Available-for-sale securities, amortized cost	$ 134,909	$ 142,028
Available-for-sale securities, gross unrealized gains	2,938	2,492
Available-for-sale securities, gross unrealized losses	(244)	(510)
Available-for-sale securities, fair value	137,603	144,010
Held-to-maturity, amortized cost	3,686	3,786
Held-to-maturity, gross unrecognized gains	78	35
Held-to-maturity, gross unrecognized losses
Held-to-maturity, fair value	3,764	3,821
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale securities, amortized cost	14,646	19,227
Available-for-sale securities, gross unrealized gains	184	287
Available-for-sale securities, gross unrealized losses	(13)	(1)
Available-for-sale securities, fair value	14,817	19,513
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale securities, amortized cost	55,737	56,405
Available-for-sale securities, gross unrealized gains	1,966	1,557
Available-for-sale securities, gross unrealized losses	(4)	(33)
Available-for-sale securities, fair value	57,699	57,929
Held-to-maturity, amortized cost	3,686	3,786
Held-to-maturity, gross unrecognized gains	78	35
Held-to-maturity, gross unrecognized losses
Held-to-maturity, fair value	3,764	3,821
Residential Mortgage Backed Securities [Member]
Available-for-sale securities, amortized cost	54,497	56,309
Available-for-sale securities, gross unrealized gains	576	450
Available-for-sale securities, gross unrealized losses	(209)	(448)
Available-for-sale securities, fair value	54,864	56,311
Commercial Mortgage Backed Securities [Member]
Available-for-sale securities, amortized cost	1,651
Available-for-sale securities, gross unrealized gains	11
Available-for-sale securities, gross unrealized losses	(2)
Available-for-sale securities, fair value	1,660
Collateralized Mortgage Obligations [Member]
Available-for-sale securities, amortized cost	8,378	10,087
Available-for-sale securities, gross unrealized gains	201	198
Available-for-sale securities, gross unrealized losses	(16)	(28)
Available-for-sale securities, fair value	$ 8,563	$ 10,257

XML

Note 9 - Leases (Tables)

3 Months Ended

Sep. 30, 2019

Notes Tables

Lessee, Operating Lease, Liability, Maturity [Table Text Block]

Period Ending June 30
2020	$	82
2021		105
2022		95
2023		76
2024		51
Thereafter		146
Total	$	555

XML

Note 5 - Fair Value (Tables)

3 Months Ended

Sep. 30, 2019

Notes Tables

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

			Fair Value Measurements at September 30, 2019 Using
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Assets:
Obligations of U.S. government-sponsored entities and agencies	$	14,817	$	—	$	14,817	$	—
Obligations of states and political subdivisions		57,699		—		57,699		—
U.S. Government-sponsored mortgage-backed securities – residential		54,864		—		54,864		—
U.S. Government-sponsored mortgage-backed securities – commercial		1,660		—		1,660		—
U.S. Government-sponsored collateralized mortgage obligations - residential		8,563		—		8,563		—

			Fair Value Measurements at June 30, 2019 Using
	Balance at June 30, 2019		Level 1		Level 2		Level 3
Assets:
Securities available-for-sale:
Obligations of government-sponsored entities	$	19,513	$	—	$	19,513	$	—
Obligations of states and political subdivisions		57,929		—		57,929		—
U.S. Government-sponsored mortgage-backed securities - residential		56,311		—		56,311		—
U.S. Government-sponsored collateralized mortgage obligations		10,257		—		10,257		—

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

			Fair Value Measurements at September 30, 2019 Using
	Balance at September 30, 2019		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	55	$	—	$	—	$	55

			Fair Value Measurements at June 30, 2019 Using
	Balance at June 30, 2019		Level 1		Level 2		Level 3
Impaired loans:
Commercial Real Estate - Other	$	59	$	—	$	—	$	59

Fair Value Measurement Inputs and Valuation Techniques [Table Text Block]

September 30, 2019	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	55	Settlement Agreement		N/A		0.0	%		0.0	%

June 30, 2019	Fair Value		Valuation Technique	Unobservable Inputs		Range			Weighted Average
Impaired loans:
Commercial Real Estate – Other	$	59	Settlement Agreement		N/A		0.0	%		0.0	%

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

	September 30 , 2019				June 30, 201 9
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
Financial Assets:
Level 1 inputs:
Cash and cash equivalents	$	12,502	$	12,502	$	9,461	$	9,461
Level 2 inputs:
Certificates of deposits in other financial institutions		1,493		1,495		1,983		1,983
Loans held for sale		2,436		2,485		1,657		1,687
Accrued interest receivable		1,547		1,547		1,607		1,607
Level 3 inputs:
Securities held-to-maturity		3,686		3,764		3,786		3,821
Loans, net		379,911		385,670		365,387		366,911
Financial Liabilities:
Level 2 inputs:
Demand and savings deposits		376,020		376,020		359,969		359,969
Time deposits		111,414		112,141		112,205		112,841
Short-term borrowings		3,754		3,754		3,686		3,686
Federal Home Loan Bank advances		16,300		16,287		22,700		22,596
Accrued interest payable		117		117		132		132

XML

Note 5 - Fair Value - Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Total available-for-sale securities	$ 137,603	$ 144,010
US Government-sponsored Enterprises Debt Securities [Member]
Total available-for-sale securities	14,817	19,513
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Total available-for-sale securities
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Total available-for-sale securities	14,817	19,513
US Government-sponsored Enterprises Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Total available-for-sale securities
US States and Political Subdivisions Debt Securities [Member]
Total available-for-sale securities	57,699	57,929
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Total available-for-sale securities
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Total available-for-sale securities	57,699	57,929
US States and Political Subdivisions Debt Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Total available-for-sale securities
Residential Mortgage Backed Securities [Member]
Total available-for-sale securities	54,864	56,311
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Total available-for-sale securities
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Total available-for-sale securities	54,864	56,311
Residential Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Total available-for-sale securities
Commercial Mortgage Backed Securities [Member]
Total available-for-sale securities	1,660
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 1 [Member]
Total available-for-sale securities
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 2 [Member]
Total available-for-sale securities	1,660
Commercial Mortgage Backed Securities [Member] | Fair Value, Inputs, Level 3 [Member]
Total available-for-sale securities
Collateralized Debt Obligations [Member]
Total available-for-sale securities	8,563	10,257
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 1 [Member]
Total available-for-sale securities
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 2 [Member]
Total available-for-sale securities	8,563	10,257
Collateralized Debt Obligations [Member] | Fair Value, Inputs, Level 3 [Member]
Total available-for-sale securities

XML

Note 6 - Earnings Per Share (Details Textual) - shares shares in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Restricted Stock [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share, Amount	4,062	0

XML

Note 9 - Leases (Details Textual) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)
Operating Lease, Weighted Average Remaining Lease Term	60 years 335 days
Operating Lease, Cost	$ 27
Short-term Lease, Cost	22
Operating Lease, Right-of-Use Asset	555
Operating Lease, Liability, Total	$ 555

XML

Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Net income		$ 1,503	$ 1,673
Other comprehensive income (loss), net of tax:
Unrealized gains (losses) arising during the period		818	(893)
Reclassification adjustment for gains included in income	[1],[2]	(106)	(587)
Net unrealized gains (losses)		712	(1,480)
Income tax effect		(149)	312
Net current period other comprehensive loss		563	(1,168)
Total comprehensive income		$ 2,066	$ 505

[1] Income tax expense

[2] Securities (gains) losses, net

XML

Document And Entity Information - shares	3 Months Ended
	Sep. 30, 2019	Nov. 04, 2019
Document Information [Line Items]
Entity Registrant Name	CONSUMERS BANCORP INC /OH/
Entity Central Index Key	0001006830
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)		2,745,658
Entity Shell Company	false
Document Type	10-Q
Document Period End Date	Sep. 30, 2019
Document Fiscal Year Focus	2020
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Note 1 - Summary of Significant Accounting Policies

3 Months Ended

Sep. 30, 2019

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, 2019.

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 of the Corporation’s 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.

Adoption of New Accounting Standards

: In

February 2016,

FASB issued accounting standards update (ASU)

2016

-

02,

Leases (Topic

842

)

. This ASU requires 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 are required so users can understand more about the nature of an entity’s leasing activities. The new guidance was effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after

December 15, 2018.

The Corporation has several lease agreements, such as branch locations, which were previously considered operating leases, and therefore,

not

recognized on the Corporation’s consolidated condensed statements of financial condition. The new guidance requires these lease agreements to now be recognized on the consolidated condensed statements of financial condition as a right-of-use asset and a corresponding lease liability. As of

July 1, 2019,

the Corporation adopted ASU

2016

-

02

using the modified retrospective method. There was

no

cumulative-effect adjustment to the opening balance of retained earnings for the period of adoption. At

September 30, 2019,

the Corporation had contractual operating lease commitments of

$555,

before considering renewal options that are generally present.

Recently Issued Accounting Pronouncements

Not

Yet Effective:

In

June 2016,

Financial Accounting Standards Board (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 the 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. However, during

July 2019,

FASB unanimously voted for a proposal to delay this ASU to

January 2023

for smaller reporting companies. On

October 16, 2019,

FASB approved a final ASU delaying the effective date. The new guidance is effective for annual and interim periods beginning after

December 15, 2022

for certain entities, including smaller reporting companies. The Corporation is a small reporting company.

XML

Note 7 - Accumulated Other Comprehensive Income (Loss)

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Comprehensive Income (Loss) Note [Text Block]

Note

7

–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, 2019

and

2018,

were as follows:

	Pretax			Tax Effect			After-tax			Affected Line Item in Consolidated Statements of Income
Balance as of June 30, 2019	$	1,982		$	(416	)	$	1,566
Unrealized holding gain on available-for-sale securities arising during the period		818			(171	)		647
Amounts reclassified from accumulated other comprehensive income		(106	)		22			(84	)	(a)(b)
Net current period other comprehensive income		712			(149	)		563
Balance as of September 30, 2019	$	2,694		$	(565	)	$	2,129
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	)
Amount reclassified from accumulated other comprehensive income		(587	)		124			(463	)	(a)(b)
Net current period other comprehensive income		(1,480	)		312			(1,168	)
Balance as of September 30, 2018	$	(3,549	)	$	746		$	(2,803	)

(a) Securities (gains) losses, net

(b) Income tax expense

XML

Note 3 - Securities

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

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

Note

3

– Securities

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30 , 2019
Obligations of U.S. government-sponsored entities and agencies	$	14,646	$	184	$	(13	)	$	14,817
Obligations of state and political subdivisions		55,737		1,966		(4	)		57,699
U.S. Government-sponsored mortgage-backed securities–residential		54,497		576		(209	)		54,864
U.S. Government-sponsored mortgage-backed securities– commercial		1,651		11		(2	)		1,660
U.S. Government-sponsored collateralized mortgage obligations– residential		8,378		201		(16	)		8,563
Total available-for-sale securities	$	134,909	$	2,938	$	(244	)	$	137,603

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
September 30 , 2019
Obligations of state and political subdivisions	$	3,686	$	78	$	—	$	3,764
Total held-to-maturity securities	$	3,686	$	78	$	—	$	3,764

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 201 9
Obligations of U.S. government-sponsored entities and agencies	$	19,227	$	287	$	(1	)	$	19,513
Obligations of state and political subdivisions		56,405		1,557		(33	)		57,929
U.S. Government-sponsored mortgage-backed securities – residential		56,309		450		(448	)		56,311
U.S. Government-sponsored collateralized mortgage obligations – residential		10,087		198		(28	)		10,257
Total available-for-sale securities	$	142,028	$	2,492	$	(510	)	$	144,010

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 201 9
Obligations of state and political subdivisions	$	3,786	$	35	$	—	$	3,821
Total held-to-maturity securities	$	3,786	$	35	$	—	$	3,821

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

	Three Months Ended September 30,
	2019		2018
Proceeds from sales and calls	$	4,460	$	2,573
Gross realized gains		106		593
Gross realized losses		—		6

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

$22

for the

three

months ended

September 30, 2019.

The income tax benefit related to the net realized losses amounted to

$124

for the

three

months ended

September 30, 2018.

The amortized cost and fair values of debt securities at

September 30, 2019,

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	$	5,362	$	5,382
Due after one year through five years		14,540		14,802
Due after five years through ten years		23,261		23,727
Due after ten years		27,220		28,605
Total		70,383		72,516
U.S. Government-sponsored mortgage-backed and related securities		64,526		65,087
Total available-for-sale securities	$	134,909	$	137,603
Held-to-Maturity
Due after five years through ten years	$	451	$	472
Due after ten years		3,235		3,292
Total held-to-maturity securities	$	3,686	$	3,764

The following table summarizes the securities with unrealized losses at

September 30, 2019

and

June 30, 2019,

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, 2019
Obligations of US government-sponsored entities and agencies	$	2,668	$	(13	)	$	—	$	—		$	2,668	$	(13	)
Obligations of states and political subdivisions		1,780		(3	)		209		(1	)		1,989		(4	)
U.S. Government-sponsored mortgage-backed securities – residential		2,558		(6	)		29,328		(203	)		31,886		(209	)
U.S. Government-sponsored mortgage-backed securities – commercial		705		(2	)		—		—			705		(2	)
U.S. Government-sponsored collateralized mortgage obligations – residential		462		(1	)		1,486		(15	)		1,948		(16	)
Total temporarily impaired	$	8,173	$	(25	)	$	31,023	$	(219	)	$	39,196	$	(244	)

	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 9
Obligations of U.S. government-sponsored entities and agencies	$	—	$	—	$	998	$	(1	)	$	998	$	(1	)
Obligations of states and political subdivisions		—		—		5,201		(33	)		5,201		(33	)
U.S. Government-sponsored mortgage-backed securities – residential		—		—		36,362		(448	)		36,362		(448	)
U.S. Government-sponsored collateralized mortgage obligations - residential		—		—		3,277		(28	)		3,277		(28	)
Total temporarily impaired	$	—	$	—	$	45,838	$	(510	)	$	45,838	$	(510	)

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, 2019

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 - Securities (Tables)

3 Months Ended

Sep. 30, 2019

Notes Tables

Marketable Securities [Table Text Block]

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30 , 2019
Obligations of U.S. government-sponsored entities and agencies	$	14,646	$	184	$	(13	)	$	14,817
Obligations of state and political subdivisions		55,737		1,966		(4	)		57,699
U.S. Government-sponsored mortgage-backed securities–residential		54,497		576		(209	)		54,864
U.S. Government-sponsored mortgage-backed securities– commercial		1,651		11		(2	)		1,660
U.S. Government-sponsored collateralized mortgage obligations– residential		8,378		201		(16	)		8,563
Total available-for-sale securities	$	134,909	$	2,938	$	(244	)	$	137,603

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
September 30 , 2019
Obligations of state and political subdivisions	$	3,686	$	78	$	—	$	3,764
Total held-to-maturity securities	$	3,686	$	78	$	—	$	3,764

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 201 9
Obligations of U.S. government-sponsored entities and agencies	$	19,227	$	287	$	(1	)	$	19,513
Obligations of state and political subdivisions		56,405		1,557		(33	)		57,929
U.S. Government-sponsored mortgage-backed securities – residential		56,309		450		(448	)		56,311
U.S. Government-sponsored collateralized mortgage obligations – residential		10,087		198		(28	)		10,257
Total available-for-sale securities	$	142,028	$	2,492	$	(510	)	$	144,010

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 201 9
Obligations of state and political subdivisions	$	3,786	$	35	$	—	$	3,821
Total held-to-maturity securities	$	3,786	$	35	$	—	$	3,821

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

	Three Months Ended September 30,
	2019		2018
Proceeds from sales and calls	$	4,460	$	2,573
Gross realized gains		106		593
Gross realized losses		—		6

Investments Classified by Contractual Maturity Date [Table Text Block]

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	5,362	$	5,382
Due after one year through five years		14,540		14,802
Due after five years through ten years		23,261		23,727
Due after ten years		27,220		28,605
Total		70,383		72,516
U.S. Government-sponsored mortgage-backed and related securities		64,526		65,087
Total available-for-sale securities	$	134,909	$	137,603
Held-to-Maturity
Due after five years through ten years	$	451	$	472
Due after ten years		3,235		3,292
Total held-to-maturity securities	$	3,686	$	3,764

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, 2019
Obligations of US government-sponsored entities and agencies	$	2,668	$	(13	)	$	—	$	—		$	2,668	$	(13	)
Obligations of states and political subdivisions		1,780		(3	)		209		(1	)		1,989		(4	)
U.S. Government-sponsored mortgage-backed securities – residential		2,558		(6	)		29,328		(203	)		31,886		(209	)
U.S. Government-sponsored mortgage-backed securities – commercial		705		(2	)		—		—			705		(2	)
U.S. Government-sponsored collateralized mortgage obligations – residential		462		(1	)		1,486		(15	)		1,948		(16	)
Total temporarily impaired	$	8,173	$	(25	)	$	31,023	$	(219	)	$	39,196	$	(244	)

	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 9
Obligations of U.S. government-sponsored entities and agencies	$	—	$	—	$	998	$	(1	)	$	998	$	(1	)
Obligations of states and political subdivisions		—		—		5,201		(33	)		5,201		(33	)
U.S. Government-sponsored mortgage-backed securities – residential		—		—		36,362		(448	)		36,362		(448	)
U.S. Government-sponsored collateralized mortgage obligations - residential		—		—		3,277		(28	)		3,277		(28	)
Total temporarily impaired	$	—	$	—	$	45,838	$	(510	)	$	45,838	$	(510	)

XML

Note 3 - Securities - Securities With Unrealized and Unrecognized Losses (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 8,173
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(25)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	31,023	45,838
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(219)	(510)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	39,196	45,838
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(244)	(510)
US Government-sponsored Enterprises Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	2,668
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(13)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value		998
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss		(1)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	2,668	998
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(13)	(1)
US States and Political Subdivisions Debt Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,780
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(3)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	209	5,201
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(1)	(33)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,989	5,201
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(4)	(33)
Residential Mortgage Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	2,558
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(6)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	29,328	36,362
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(203)	(448)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	31,886	36,362
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(209)	(448)
Commercial Mortgage Backed Securities [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	705
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Aggregate Loss	(2)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	705
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	(2)
Collateralized Debt Obligations [Member]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	462
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	1,486	3,277
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Aggregate Loss	(15)	(28)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,948	3,277
Available-for-sale Securities, Continuous Unrealized Loss Position, Aggregate Loss	$ (16)	$ (28)

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Note 4 - Loans - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018	Jun. 30, 2019
Impaired Financing Receivable, Related Allowance	$ 9		$ 9
Impaired Financing Receivable, Unpaid Principal Balance	1,036		1,395
Impaired Financing Receivable, Recorded Investment, Total	896		1,189
Impaired Financing Receivable, Average Recorded Investment	1,048	$ 2,062
Impaired Financing Receivable, Interest Income, Accrual Method	99	15
Impaired Financing Receivable, Interest Income, Cash Basis Method	99	15
Commercial Portfolio Segment [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	167
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	169
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	170	71
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	3	1
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	3	1
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance			173
Impaired Financing Receivable, with Related Allowance, Recorded Investment			174
Impaired Financing Receivable, Related Allowance	2		2
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	316		580
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	240		436
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	362	1,369
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	86	11
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	86	11
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	218		221
Impaired Financing Receivable, with Related Allowance, Recorded Investment	220		222
Impaired Financing Receivable, Related Allowance	7		7
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	220	231
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	3	3
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	3	3
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	43		124
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	12		93
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	39	99
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	7
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	7
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	292		297
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	255		$ 264
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	257	292
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 2 - Acquisition (Details Textual) - Peoples Bancorp of Mt. Pleasant, Inc. [Member] - USD ($)	7 Months Ended
	Dec. 31, 2019	Jun. 13, 2019
Business Acquisition, Average Closing Share Price		$ 19.07
Business Acquisition, Aggregate Implied Transaction Value		$ 10,300,000
Forecast [Member]
Business Acquisition, Equity Interest Issued or Issuable to Each Shareholder, Number of Shares	63.16
Payments to Each Shareholder to Acquire Businesses, Gross	$ 1,200
Business Acquisition, Percentage of Total Consideration Transferred to be Paid in Common Shares	50.00%
Business Acquisition, Percentage of Total Consideration Transferred to be Paid in Cash	50.00%
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets, Total	$ 72,400,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Loans	54,200,000
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Deposits	$ 62,700,000

XML

Note 7 - Accumulated Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Sep. 30, 2019

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, 2019	$	1,982		$	(416	)	$	1,566
Unrealized holding gain on available-for-sale securities arising during the period		818			(171	)		647
Amounts reclassified from accumulated other comprehensive income		(106	)		22			(84	)	(a)(b)
Net current period other comprehensive income		712			(149	)		563
Balance as of September 30, 2019	$	2,694		$	(565	)	$	2,129
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	)
Amount reclassified from accumulated other comprehensive income		(587	)		124			(463	)	(a)(b)
Net current period other comprehensive income		(1,480	)		312			(1,168	)
Balance as of September 30, 2018	$	(3,549	)	$	746		$	(2,803	)

XML

Note 5 - Fair Value - Quantitative Information About Level 3 Fair Value Measurements (Details) - Commercial Real Estate - Other [Member] - Bid Indications [Member] $ in Thousands	Sep. 30, 2019 USD ($)	Jun. 30, 2019 USD ($)
Fair Value	$ 55	$ 59
Measurement Input, Discount Rate [Member]
Discount Rate	0	0
Measurement Input, Discount Rate [Member] | Weighted Average [Member]
Discount Rate	0	0

XML

Note 7 - Accumulated Other Comprehensive Income (Loss) - Components of Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2019	Sep. 30, 2018
Accumulated other comprehensive income (loss), before tax		$ 1,982	$ (2,069)
Unrealized holding gain (loss) on available-for-sale securities arising during the period, before tax		818	(893)
Amounts reclassified from accumulated other comprehensive income, before tax	[1],[2]	(106)	(587)
Net current period other comprehensive income (loss), before tax		712	(1,480)
Accumulated other comprehensive income (loss), before tax		2,694	(3,549)
Accumulated other comprehensive income (loss), tax		(416)	434
Unrealized holding gain (loss) on available-for-sale securities arising during the period, tax		(171)	188
Amounts reclassified from accumulated other comprehensive income, tax	[1],[2]	22	124
Net current period other comprehensive income (loss), tax		(149)	312
Accumulated other comprehensive income (loss), tax		(565)	746
Accumulated other comprehensive income (loss), net		1,566	(1,635)
Unrealized holding gain (loss) on available-for-sale securities arising during the period, net		647	(705)
Amounts reclassified from accumulated other comprehensive income, net	[1],[2]	(84)	(463)
Net current period other comprehensive loss		563	(1,168)
Accumulated other comprehensive income (loss), net		$ 2,129	$ (2,803)

[1] Income tax expense

[2] Securities (gains) losses, net

XML

Note 1 - Summary of Significant Accounting Policies (Details Textual) $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)	Jul. 01, 2019 USD ($)
Number of Reportable Segments	1
Operating Leases, Future Minimum Payments Due, Total	$ 555
Accounting Standards Update 2016-02 [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 0

XML

Note 6 - Earnings Per Share (Tables)

3 Months Ended

Sep. 30, 2019

Notes Tables

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

	For the Three Months Ended September 30,
	2019		2018
Basic:
Net income available to common shareholders	$	1,503	$	1,673
Weighted average common shares outstanding		2,734,578		2,729,103
Basic income per share	$	0.55	$	0.61
Diluted:
Net income available to common shareholders	$	1,503	$	1,673
Weighted average common shares outstanding		2,734,578		2,729,103
Dilutive effect of restricted stock		—		68
Total common shares and dilutive potential common shares		2,734,578		2,729,171
Dilutive income per share	$	0.55	$	0.61

XML

Note 5 - Fair Value - Estimated Fair Values of Financial Instruments (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Held-to-maturity, fair value	$ 3,764	$ 3,821
Fair Value, Inputs, Level 1 [Member] | Reported Value Measurement [Member]
Cash and cash equivalents	12,502	9,461
Fair Value, Inputs, Level 1 [Member] | Estimate of Fair Value Measurement [Member]
Cash and cash equivalents	12,502	9,461
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member]
Certificates of deposits in other financial institutions	1,493	1,983
Loans held for sale	2,436	1,657
Accrued interest receivable	1,547	1,607
Short-term borrowings	3,754	3,686
Federal Home Loan Bank advances	16,300	22,700
Accrued interest payable	117	132
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Demand and Savings Deposits [Member]
Demand and savings deposits	376,020	359,969
Fair Value, Inputs, Level 2 [Member] | Reported Value Measurement [Member] | Time Deposits [Member]
Demand and savings deposits	111,414	112,205
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member]
Certificates of deposits in other financial institutions	1,495	1,983
Loans held for sale	2,485	1,687
Accrued interest receivable	1,547	1,607
Short-term borrowings	3,754	3,686
Federal Home Loan Bank advances	16,287	22,596
Accrued interest payable	117	132
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Demand and Savings Deposits [Member]
Demand and savings deposits	376,020	359,969
Fair Value, Inputs, Level 2 [Member] | Estimate of Fair Value Measurement [Member] | Time Deposits [Member]
Demand and savings deposits	112,141	112,841
Fair Value, Inputs, Level 3 [Member] | Reported Value Measurement [Member]
Held-to-maturity, fair value	3,686	3,786
Loans, net	379,911	365,387
Fair Value, Inputs, Level 3 [Member] | Estimate of Fair Value Measurement [Member]
Held-to-maturity, fair value	3,764	3,821
Loans, net	$ 385,670	$ 366,911

XML

Note 8 - Revenue Recognition - Noninterest Income (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Noninterest income (in scope of Topic 606)	$ 1,160	$ 740
Noninterest income	1,469	1,495
Deposit Account [Member]
Noninterest income (in scope of Topic 606)	373	316
Debit Card [Member]
Noninterest income (in scope of Topic 606)	391	358
Financial Service, Other [Member]
Noninterest income (in scope of Topic 606)	396	66
Product and Service, Out of Scope of ASC 606 [Member]
Noninterest income	$ 309	$ 755

XML

Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Cash flows from operating activities
Net cash from operating activities	$ 806	$ 533
Securities available-for-sale
Purchases	(2,318)	(2,060)
Maturities, calls and principal pay downs	4,893	4,730
Proceeds from sales	4,460	2,573
Securities held-to-maturity
Principal pay downs	100	95
Net decrease in certificate of deposit in other financial institutions	490
Net increase in loans	(14,654)	(10,247)
Proceeds from BOLI death benefit	753
Acquisition of premises and equipment	(48)	(350)
Net cash from investing activities	(6,324)	(5,259)
Cash flow from financing activities
Net increase in deposit accounts	15,260	10,576
Net change in short-term borrowings	68	(10,465)
Proceeds from Federal Home Loan Bank advances	1,500	8,000
Repayments of Federal Home Loan Bank advances	(7,900)	(17)
Dividends paid	(369)	(355)
Net cash from financing activities	8,559	7,739
Increase in cash or cash equivalents	3,041	3,013
Cash and cash equivalents, beginning of period	9,461	7,772
Cash and cash equivalents, end of period	12,502	10,785
Supplemental disclosure of cash flow information:
Interest	1,050	576
Federal income taxes
Non-cash items:
Transfer from loans held for sale to portfolio		75
Issuance of treasury stock for stock awards	89	59
Right of use assets obtained in exchange for lease liabilities	$ 582

XML

Consolidated Statements of Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2019	Sep. 30, 2018
Interest and dividend income
Loans, including fees	$ 4,761	$ 3,949
Securities, taxable	510	526
Securities, tax-exempt	399	375
Federal bank and other restricted stocks	20	22
Federal funds sold and other interest-bearing deposits	26	23
Total interest and dividend income	5,716	4,895
Interest expense
Deposits	945	514
Short-term borrowings	11	14
Federal Home Loan Bank advances	79	68
Total interest expense	1,035	596
Net interest income	4,681	4,299
Provision for loan losses	130	115
Net interest income after provision for loan losses	4,551	4,184
Noninterest income
Noninterest income (in scope of Topic 606)	1,160	740
Bank owned life insurance death benefit	324
Bank owned life insurance income	68	69
Securities gains, net	106	587
Other	207	165
Total noninterest income	1,469	1,495
Noninterest expenses
Salaries and employee benefits	2,173	1,975
Occupancy and equipment	532	488
Data processing expenses	385	150
Debit card processing expenses	201	194
Professional and director fees	257	170
FDIC assessments	(7)	38
Franchise taxes	95	89
Marketing and advertising	181	104
Telephone and network communications	74	72
Other	414	404
Total noninterest expenses	4,305	3,684
Income before income taxes	1,715	1,995
Income tax expense	212	322
Net income	$ 1,503	$ 1,673
Basic and diluted earnings per share (in dollars per share)	$ 0.55	$ 0.61
Deposit Account [Member]
Noninterest income
Noninterest income (in scope of Topic 606)	$ 373	$ 316
Debit Card [Member]
Noninterest income
Noninterest income (in scope of Topic 606)	$ 391	$ 358

XML

Significant Accounting Policies (Policies)

3 Months Ended

Sep. 30, 2019

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, 2019.

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 of the Corporation’s 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]

Adoption of New Accounting Standards

: In

February 2016,

FASB issued accounting standards update (ASU)

2016

-

02,

Leases (Topic

842

)

. This ASU requires 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 are required so users can understand more about the nature of an entity’s leasing activities. The new guidance was effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after

December 15, 2018.

The Corporation has several lease agreements, such as branch locations, which were previously considered operating leases, and therefore,

not

recognized on the Corporation’s consolidated condensed statements of financial condition. The new guidance requires these lease agreements to now be recognized on the consolidated condensed statements of financial condition as a right-of-use asset and a corresponding lease liability. As of

July 1, 2019,

the Corporation adopted ASU

2016

-

02

using the modified retrospective method. There was

no

cumulative-effect adjustment to the opening balance of retained earnings for the period of adoption. At

September 30, 2019,

the Corporation had contractual operating lease commitments of

$555,

before considering renewal options that are generally present.

Recently Issued Accounting Pronouncements

Not

Yet Effective:

In

June 2016,

Financial Accounting Standards Board (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 the 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. However, during

July 2019,

FASB unanimously voted for a proposal to delay this ASU to

January 2023

for smaller reporting companies. On

October 16, 2019,

FASB approved a final ASU delaying the effective date. The new guidance is effective for annual and interim periods beginning after

December 15, 2022

for certain entities, including smaller reporting companies. The Corporation is a small reporting company.

XML

Note 6 - Earnings Per Share

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Earnings Per Share [Text Block]

Note

6

– 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

4,062

shares of restricted stock that were anti-dilutive for the

three

-month period ended

September 30, 2019. 

There were

no

equity instruments that were anti-dilutive for the

three

-month period ended

September 30, 2018.

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

	For the Three Months Ended September 30,
	2019		2018
Basic:
Net income available to common shareholders	$	1,503	$	1,673
Weighted average common shares outstanding		2,734,578		2,729,103
Basic income per share	$	0.55	$	0.61
Diluted:
Net income available to common shareholders	$	1,503	$	1,673
Weighted average common shares outstanding		2,734,578		2,729,103
Dilutive effect of restricted stock		—		68
Total common shares and dilutive potential common shares		2,734,578		2,729,171
Dilutive income per share	$	0.55	$	0.61

XML

Note 2 - Acquisition

3 Months Ended

Sep. 30, 2019

Notes to Financial Statements

Business Combination Disclosure [Text Block]

Note

2

–

Acquisition

On

June 14, 2019,

Consumers entered into an Agreement and Plan of Merger (Merger Agreement) with Peoples Bancorp of Mt. Pleasant, Inc. (Peoples) and its wholly owned subsidiary, The Peoples National Bank of Mount Pleasant. Each Peoples shareholder will receive

63.16

common shares of Consumers common stock or

$1,200.00

in cash, subject to total consideration being paid

50%

in Consumers common shares and

50%

cash as provided in the Merger Agreement. Based on Consumers’

20

-day average closing price of

$19.07

on

June 13, 2019,

the aggregate implied transaction value was approximately

$10.3

million. On

September 30, 2019,

Peoples had approximately

$72.4

million in total assets,

$54.2

million in loans and

$62.7

million in deposits at its

three

banking centers located in Mt. Pleasant, Adena, and Dillonvale, Ohio. The transaction is expected to close in

January 2020,

pending the completion of customary closing conditions. All necessary shareholder and regulatory approvals have been received.

XML

Note 4 - Loans (Details Textual) xbrli-pure in Thousands, $ in Thousands	3 Months Ended
	Sep. 30, 2019 USD ($)	Sep. 30, 2018 USD ($)	Jun. 30, 2019 USD ($)
Interest Receivable	$ 764		$ 891
Financing Receivable, Nonaccrual	444		785
Financing Receivable, Troubled Debt Restructuring	706		725
Financing Receivable, Troubled Debt Restructuring, Commitment to Lend	0		9
Troubled Debt Restructuring, Debtor, Subsequent Periods, Contingent Payments, Amount, Total	$ 9		9
Financing Receivable, Modifications, Number of Contracts	0	0
Financing Receivables, Impaired, Troubled Debt Restructuring, Write-down	$ 0	$ 0
Financing Receivable, Troubled Debt Restructuring, Subsequent Default, Number of Contracts	0	0
Threshold Amount of Loans Outstanding to Perform Credit Analysis	$ 100
Non-accrual Loans [Member]
Financing Receivable, Nonaccrual	431		507
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Nonaccrual	$ 13
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Nonaccrual			198
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Nonaccrual			$ 80

XML

Note 4 - Loans - Loans Past Due (Details) - USD ($) $ in Thousands	Sep. 30, 2019	Jun. 30, 2019
Financing Receivable, Recorded Investment, Nonaccrual Status	$ 444	$ 785
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due	29	320
Financing Receivable, Recorded Investment, Not Past Due	384,555	369,746
Financing Receivable, Recorded Investment, Total	384,584	370,066
Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status		198
Financing Receivable, Recorded Investment, Past Due	16	240
Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	13
Financing Receivable, Recorded Investment, Past Due	13
Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status		80
Financing Receivable, Recorded Investment, Past Due		80
Commercial Real Estate Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Total	219,758	211,367
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	185	436
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due	8	199
Financing Receivable, Recorded Investment, Not Past Due	205,210	195,093
Financing Receivable, Recorded Investment, Total	205,218	195,292
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due		199
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due	8
Commercial Real Estate Portfolio Segment [Member] | Other Commercial Real Estate Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	14,540	16,075
Financing Receivable, Recorded Investment, Total	14,540	16,075
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Real Estate Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	81,806	80,587
Financing Receivable, Recorded Investment, Total	81,806	80,587
Commercial Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Commercial Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Total	77,088	72,948
Residential Portfolio Segment [Member] | Construction Loans [Member]
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	3,173	1,963
Financing Receivable, Recorded Investment, Total	3,173	1,963
Residential Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Construction Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	5	85
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due	5	120
Financing Receivable, Recorded Investment, Not Past Due	58,974	56,347
Financing Receivable, Recorded Investment, Total	58,979	56,467
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due		40
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due	5
Residential Portfolio Segment [Member] | Residential Real Estate Owner Occupied Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due		80
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member]
Financing Receivable, Recorded Investment, Nonaccrual Status	254	264
Financing Receivable, Recorded Investment, 90 Days Past Due and Still Accruing
Financing Receivable, Recorded Investment, Past Due
Financing Receivable, Recorded Investment, Not Past Due	14,936	14,518
Financing Receivable, Recorded Investment, Total	14,936	14,518
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Residential Portfolio Segment [Member] | Residential Real Estate Non-owner Occupied Loans [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Consumer Portfolio Segment [Member]
Financing Receivable, Recorded Investment, Past Due	16	1
Financing Receivable, Recorded Investment, Not Past Due	5,916	5,163
Financing Receivable, Recorded Investment, Total	5,932	5,164
Consumer Portfolio Segment [Member] | Financial Asset, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due	16	1
Consumer Portfolio Segment [Member] | Financial Asset, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due
Consumer Portfolio Segment [Member] | Financial Asset, Equal to or Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due