Fair Value Measurements and Fair Value of Financial Instruments (Tables)

3 Months Ended

Sep. 30, 2014

Fair Value Measurements and Fair Value of Financial Instruments [Abstract]

Fair Value, Assets Measured on Recurring Basis

For assets measured at fair value on a recurring basis, the fair value measurements by level within the fair value hierarchy used are as follows:

			Fair Value Measurements Using
			Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	September 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
U.S. Government sponsored enterprises	$	8,844	$	-	$	8,844	$	-
State and political subdivisions		14,232		-		14,232		-
Mortgage-backed securities-residential		9,083		-		9,083		-
Mortgage-backed securities-multi-family		28,105		-		28,105		-
Asset-backed securities		13		13		-		-
Corporate debt securities		4,878		4,878		-		-
Equity securities		160		160		-		-
Securities available for sale	$	65,315	$	5,051	$	60,264	$	-

			Fair Value Measurements Using
			Quoted Prices In Active Markets For Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
(In thousands)	June 30, 2014		(Level 1)		(Level 2)		(Level 3)
Assets:
U.S. Government sponsored enterprises	$	10,898	$	-	$	10,898	$	-
State and political subdivisions		1,347		-		1,347		-
Mortgage-backed securities-residential		9,545		-		9,545		-
Mortgage-backed securities-multi-family		29,018		-		29,018		-
Asset-backed securities		13		13		-		-
Corporate debt securities		5,170		5,170		-		-
Equity securities		160		160		-		-
Securities available for sale	$	56,151	$	5,343	$	50,808	$	-

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis, Valuation Techniques

In addition to disclosures of the fair value of assets on a recurring basis, FASB ASC Topic on “Fair Value Measurement” requires disclosures for assets and liabilities measured at fair value on a nonrecurring basis, such as impaired assets, in the period in which a re-measurement at fair value is performed. Loans are generally not recorded at fair value on a recurring basis. Periodically, the Company records nonrecurring adjustments to the carrying value of loans based on fair value measurements for partial charge-offs of the uncollectible portions of those loans. Nonrecurring adjustments also include certain impairment amounts for collateral-dependent loans calculated as required by the “Receivables –Loan Impairment” subtopic of the FASB ASC when establishing the allowance for credit losses. Impaired loans are those loans for which the Company has re-measured impairment generally based on the fair value of the underlying collateral supporting the loan and, as a result, the carrying value of the loan less the calculated valuation amount may not necessarily represent the actual fair value of the loan. Real estate collateral is typically valued using independent appraisals or other indications of value based on recent comparable sales of similar properties or assumptions generally observable in the marketplace and the related nonrecurring fair value measurement adjustments have generally been classified as Level 3. Estimates of fair value used for other collateral supporting commercial loans generally are based on assumptions not observable in the marketplace and therefore such valuations have been classified as Level 3. The Company has also re-measured impairment based on the discounted cash flows for those loans that have been modified as a troubled-debt restructuring. The cash flows of the restructured debt have been discounted by the original interest rate prior to the restructuring of the loan to establish the fair value and is therefore classified as Level 3.

			Fair Value Measurements Using
(In thousands)	Fair Value		(Level 1)		(Level 2)		(Level 3)
September 30, 2014
Impaired loans	$	3,268	$	-	$	-	$	3,268
Foreclosed real estate		245		-		-		245

June 30, 2014
Impaired loans	$	3,527	$	-	$	-	$	3,527
Foreclosed real estate		382						382

Fair Value Inputs, Assets, Quantitative Information

The following table presents additional quantitative information about assets measured at fair value on a nonrecurring basis and for which Level 3 inputs were utilized to determine fair value:

(Dollars in thousands)	Fair Value		Valuation Technique	Unobservable Input	Range			Weighted Average
September 30, 2014
Impaired Loans	$	3,268	Appraisal of collateral⁽¹⁾	Appraisal adjustments⁽²⁾		0.00%-38.85	%		13.44	%
				Liquidation expenses⁽³⁾		0.00%-9.22	%		3.96	%
Foreclosed real estate		245	Appraisal of collateral⁽¹⁾	Appraisal adjustments⁽²⁾		7.41%-19.00	%		10.72	%
				Liquidation expenses⁽³⁾		7.59%-10.86	%		8.52	%
June 30, 2014
Impaired loans	$	3,527	Appraisal of collateral⁽¹⁾	Appraisal adjustments⁽²⁾		0.00%-38.85	%		15.26	%
				Liquidation expenses⁽³⁾	0.00%-9.22%			3.82%
Foreclosed real estate		382	Appraisal of collateral⁽¹⁾	Appraisal adjustments⁽²⁾		9.30%-19.00	%		12.18	%
				Liquidation expenses⁽³⁾		6.00%-10.86	%	7.95%

⁽¹⁾

Fair value is generally determined through independent third-party appraisals of the underlying collateral, which generally includes various Level 3 inputs which are not observable.

⁽²⁾

Appraisals may be adjusted downwards by management for qualitative factors such as economic conditions. Higher downward adjustments are caused by negative changes to the collateral or conditions in the real estate market, actual offers or sales contracts received or age of the appraisal.

⁽³⁾

Appraisals may be adjusted downwards by management for qualitative factors such as the estimated costs to liquidate the collateral.

Carrying Amounts and Estimated Fair Value

The carrying amounts and estimated fair value of financial instruments are as follows:

(In thousands)	September 30, 2014				Fair Value Measurements Using
	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	19,735	$	19,735	$	19,735	$	-	$	-
Long term certificate of deposit		250		250		250		-		-
Securities available for sale		65,315		65,315		5,051		60,264		-
Securities held to maturity		184,235		184,608		-		184,608		-
Federal Home Loan Bank stock		1,444		1,444		-		1,444		-
Net loans		406,694		415,237		-		-		415,237
Accrued interest receivable		2,918		2,918		-		2,918		-
Deposits		611,308		611,448		-		611,448		-
Federal Home Loan Bank borrowings		19,300		19,145		-		19,145		-
Accrued interest payable		56		56		-		56		-

(In thousands)	June 30, 2014				Fair Value Measurements Using
	Carrying Amount		Fair Value		(Level 1)		(Level 2)		(Level 3)
Cash and cash equivalents	$	13,809	$	13,809	$	13,809	$	-	$	-
Long term certificate of deposit		250		250		250		-		-
Securities available for sale		56,151		56,151		5,343		50,808		-
Securities held to maturity		181,946		181,932		-		181,932		-
Federal Home Loan Bank stock		1,561		1,561		-		1,561		-
Net loans		399,309		406,718		-		-		406,718
Accrued interest receivable		2,710		2,710		-		2,710		-
Deposits		589,574		589,681		-		589,681		-
Federal Home Loan Bank borrowings		17,650		17,465		-		17,465		-
Accrued interest payable		66		66		-		66		-

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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