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LOANS
 12 Months Ended
Jun. 30, 2013
Receivables [Abstract]  
Financing Receivables [Text Block]
NOTE C - LOANS
 
The composition of the loan portfolio at June 30 was as follows:
 
(in thousands)
 
2013
 
 
2012
 
 
 
 
 
 
 
 
Residential real estate
 
 
 
 
 
 
 
 
One- to four-family
 
$
209,092
 
 
$
149,086
 
Multi-family
 
 
14,506
 
 
 
15,495
 
Construction
 
 
1,753
 
 
 
964
 
Land
 
 
2,821
 
 
 
1,259
 
Farm
 
 
1,843
 
 
 
—
 
Nonresidential real estate
 
 
22,092
 
 
 
9,839
 
Commercial and industrial
 
 
3,189
 
 
 
—
 
Consumer and other
 
 
 
 
 
 
 
 
Loans on deposits
 
 
2,710
 
 
 
2,281
 
Home equity
 
 
5,757
 
 
 
4,865
 
Automobile
 
 
72
 
 
 
—
 
Unsecured
 
 
708
 
 
 
—
 
 
 
 
264,543
 
 
 
183,789
 
 
 
 
 
 
 
 
 
 
Undisbursed portion of loans in process
 
 
(833
)
 
 
(544
)
Deferred loan origination fees (cost)
 
 
91
 
 
 
103
 
Allowance for loan losses
 
 
(1,310
)
 
 
(875
)
 
 
$
262,491
 
 
$
182,473
 
  
The composition of the loan portfolio at June 30 was as follows:
 
The following tables present the balance in the allowance for loan losses and the recorded investment in loans by portfolio class and based on impairment method as of June 30, 2013 and 2012. There were $4.2 million in loans acquired with deteriorated credit quality at June 30, 2013, while there were no such loans at June 30, 2012.
 
June 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
Loans
individually
evaluated
 
 
Loans
acquired
with
deteriorated
credit
quality
 
 
Ending
loans
balance
 
 
Ending
allowance
attributed to
loans
 
 
Unallocated
allowance
 
 
Total
allowance
 
Loans individually evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
4,715
 
 
$
2,989
 
 
$
7,704
 
 
$
14
 
 
$
—
 
 
$
14
 
Farm
 
 
—
 
 
 
485
 
 
 
485
 
 
 
—
 
 
 
—
 
 
 
—
 
Nonresidential real estate
 
 
—
 
 
 
546
 
 
 
546
 
 
 
—
 
 
 
—
 
 
 
—
 
Commercial and industrial
 
 
—
 
 
 
119
 
 
 
119
 
 
 
—
 
 
 
—
 
 
 
—
 
Consumer and other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automobile
 
 
—
 
 
 
23
 
 
 
23
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
 
4,715
 
 
 
4,162
 
 
 
8,877
 
 
 
14
 
 
 
—
 
 
 
14
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans collectively evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
 
 
 
 
 
 
 
 
$
201,388
 
 
$
860
 
 
$
—
 
 
$
860
 
Multi-family
 
 
 
 
 
 
 
 
 
 
14,506
 
 
 
63
 
 
 
—
 
 
 
63
 
Construction
 
 
 
 
 
 
 
 
 
 
1,753
 
 
 
8
 
 
 
—
 
 
 
8
 
Land
 
 
 
 
 
 
 
 
 
 
2,821
 
 
 
12
 
 
 
—
 
 
 
12
 
Farm
 
 
 
 
 
 
 
 
 
 
1,358
 
 
 
6
 
 
 
—
 
 
 
6
 
Nonresidential real estate
 
 
 
 
 
 
 
 
 
 
21,546
 
 
 
94
 
 
 
—
 
 
 
94
 
Commercial and industrial
 
 
 
 
 
 
 
 
 
 
3,070
 
 
 
13
 
 
 
—
 
 
 
13
 
Consumer and other
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans on deposits
 
 
 
 
 
 
 
 
 
 
2,710
 
 
 
12
 
 
 
—
 
 
 
12
 
Home equity
 
 
 
 
 
 
 
 
 
 
5,757
 
 
 
25
 
 
 
—
 
 
 
25
 
Automobile
 
 
 
 
 
 
 
 
 
 
49
 
 
 
—
 
 
 
—
 
 
 
—
 
Unsecured
 
 
 
 
 
 
 
 
 
 
708
 
 
 
3
 
 
 
—
 
 
 
3
 
Unallocated
 
 
 
 
 
 
 
 
 
 
—
 
 
 
—
 
 
 
200
 
 
 
200
 
 
 
 
 
 
 
 
 
 
 
 
255,666
 
 
 
1,096
 
 
 
200
 
 
 
1,296
 
 
 
 
 
 
 
 
 
 
 
$
264,543
 
 
$
1,110
 
 
$
200
 
 
$
1,310
 
 
June 30, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
Recorded
investment
in loans
 
 
Ending
allowance
attributed to
loans
 
 
Unallocated
allowance
 
 
Total
allowance
 
Loans individually evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
2,757
 
 
$
97
 
 
$
—
 
 
$
97
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans collectively evaluated for impairment:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
146,329
 
 
$
468
 
 
$
—
 
 
$
468
 
Multi-family
 
 
15,495
 
 
 
49
 
 
 
—
 
 
 
49
 
Construction
 
 
964
 
 
 
3
 
 
 
—
 
 
 
3
 
Nonresidential real estate and land
 
 
11,098
 
 
 
35
 
 
 
—
 
 
 
35
 
Loans on deposits
 
 
2,281
 
 
 
7
 
 
 
—
 
 
 
7
 
Consumer and other
 
 
4,865
 
 
 
16
 
 
 
—
 
 
 
16
 
Unallocated
 
 
—
 
 
 
—
 
 
 
200
 
 
 
200
 
 
 
 
181,032
 
 
 
578
 
 
 
200
 
 
 
778
 
 
 
$
183,789
 
 
$
675
 
 
$
200
 
 
$
875
 
 
The following tables present impaired loans by class of loans as of and for the years ended June 30, 2013 and 2012:
 
June 30, 2013:
 
Unpaid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
 
 
Allowance
 
 
 
 
 
 
 
 
 
 
 
 
Balance and
 
 
for Loan
 
 
Average
 
 
Interest
 
 
Cash Basis
 
 
 
Recorded
 
 
Losses
 
 
Recorded
 
 
Income
 
 
Income
 
(in thousands)
 
Investment
 
 
Allocated
 
 
Investment
 
 
Recognized
 
 
Recognized
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
7,491
 
 
$
—
 
 
$
6,108
 
 
$
116
 
 
$
116
 
Farm
 
 
485
 
 
 
—
 
 
 
291
 
 
 
—
 
 
 
—
 
Nonresidential real estate
 
 
546
 
 
 
—
 
 
 
328
 
 
 
—
 
 
 
—
 
Commercial and industrial
 
 
119
 
 
 
—
 
 
 
71
 
 
 
—
 
 
 
—
 
Consumer and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Automobile
 
 
23
 
 
 
—
 
 
 
14
 
 
 
—
 
 
 
—
 
 
 
$
8,664
 
 
$
—
 
 
$
6,812
 
 
$
116
 
 
$
116
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
 
213
 
 
 
14
 
 
 
117
 
 
 
—
 
 
 
—
 
Total
 
$
8,877
 
 
$
14
 
 
$
6,929
 
 
$
116
 
 
$
116
 
 
June 30, 2012:
 
Unpaid
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Principal
 
 
Allowance
 
 
 
 
 
 
 
 
 
 
 
 
Balance and
 
 
for Loan
 
 
Average
 
 
Interest
 
 
 
 
 
 
Recorded
 
 
Losses
 
 
Recorded
 
 
Income
 
 
Cash
 
(in thousands)
 
Investment
 
 
Allocated
 
 
Investment
 
 
Recognized
 
 
Received
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With no related allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
1,222
 
 
$
—
 
 
$
889
 
 
$
45
 
 
$
45
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
With an allowance recorded:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
 
1,535
 
 
 
97
 
 
 
1,434
 
 
 
27
 
 
 
27
 
Total
 
$
2,757
 
 
$
97
 
 
$
2,323
 
 
$
72
 
 
$
72
 
 
The following tables present the recorded investment in nonaccrual and loans past due over 90 days still on accrual by class of loans as of June 30, 2013 and 2012:
 
 
 
June 30, 2013
 
 
June 30, 2012
 
(in thousands)
 
Nonaccrual
 
 
Loans Past
Due Over 90
Days Still
Accruing
 
 
Nonaccrual
 
 
Loans Past
Due Over 90
Days Still
Accruing
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family residential real estate
 
$
5,989
 
 
$
1,972
 
 
$
1,593
 
 
$
201
 
 
Troubled Debt Restructurings:
 
During the year ended June 30, 2013, the terms of 29 loans were modified as a troubled debt restructuring (“TDR.”) Ten of the loans were classified as TDRs because the borrower filed Chapter 7 bankruptcy without reaffirming their personal obligation to pay the debt. The other loans were modified because the borrower was exhibiting financial difficulty in making the original debt payments. Some of the loans are modified to lower the interest rate to prevailing rates offered by the bank at the time, while some other loans have the terms extended to provide the borrower with lower monthly payments.
 
In order to determine whether a borrower is experiencing financial difficulty, we consider the probability that the borrower will be in payment default on any of its debt in the foreseeable future without the modification. This evaluation is performed under the Company’s internal underwriting policy.
 
The following table presents loans by class modified as TDRs as of June 30, 2013, and their performance, by modification type:
 
(Dollars in thousands)
 
Number
of Loans
 
 
Pre-
Modification
Outstanding
Recorded
Investment
 
 
Post-
Modification
Outstanding
Recorded
Investment
 
 
TDRs
Performing
to Modified
Terms
 
 
TDRs Not
Performing
to
Modified
Terms
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential Real Estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
1-4 Family
 
 
33
 
 
$
3,115
 
 
$
3,123
 
 
$
827
 
 
$
2,043
 
 
The Company had no allocated specific reserves to customers whose loan terms have been modified in troubled debt restructurings as of June 30, 2013, and had $2,000 of specific reserves at June 30, 2012. At June 30, 2013, $2.2 million in TDR loans were on nonaccrual status. The Company had no commitments to lend additional amounts as of June 30, 2013 and 2012, to customers with outstanding loans that are classified as troubled debt restructurings. The Company had one TDR loan to default during the year just ended. This loan, which was considered a TDR because of a bankruptcy without reaffirmation by the borrower, had a carrying value of $474,000, and was in the process of foreclosure at June 30, 2013. Subsequent to June 30, 2013, the Company was notified that a credit with a carrying value of $624,000 had filed for bankruptcy.
 
The following tables present the aging of the principal balance outstanding in past due loans as of June 30, 2013 and 2012, by class of loans:
 
June 30, 2013:
(in thousands)
 
30-89 Days
Past Due
 
 
Greater than
90 Days
Past Due
 
 
Total
Past
Due
 
 
Loans Not
Past Due
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to four-family
 
$
5,290
 
 
$
5,034
 
 
$
10,324
 
 
$
198,768
 
 
$
209,092
 
Multi-family
 
 
—
 
 
 
—
 
 
 
—
 
 
 
14,506
 
 
 
14,506
 
Construction
 
 
42
 
 
 
—
 
 
 
42
 
 
 
1,711
 
 
 
1,753
 
Land
 
 
—
 
 
 
—
 
 
 
—
 
 
 
2,821
 
 
 
2,821
 
Farm
 
 
—
 
 
 
—
 
 
 
—
 
 
 
1,843
 
 
 
1,843
 
Nonresidential real estate
 
 
35
 
 
 
140
 
 
 
175
 
 
 
21,917
 
 
 
22,092
 
Commercial and industrial
 
 
—
 
 
 
—
 
 
 
—
 
 
 
3,189
 
 
 
3,189
 
Consumer and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans on deposits
 
 
—
 
 
 
—
 
 
 
—
 
 
 
2,710
 
 
 
2,710
 
Home equity
 
 
23
 
 
 
23
 
 
 
46
 
 
 
5,711
 
 
 
5,757
 
Automobile
 
 
29
 
 
 
—
 
 
 
29
 
 
 
43
 
 
 
72
 
Unsecured
 
 
—
 
 
 
48
 
 
 
48
 
 
 
660
 
 
 
708
 
Total
 
$
5,419
 
 
$
5,245
 
 
$
10,664
 
 
$
253,879
 
 
$
264,543
 
 
June 30, 2012:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
30-89 Days
Past Due
 
 
Greater than
90 Days
Past Due
 
 
Total
Past
Due
 
 
Loans Not
Past Due
 
 
Total
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One-to four-family
 
$
4,332
 
 
$
1,794
 
 
$
6,126
 
 
$
142,960
 
 
$
149,086
 
Multi-family
 
 
—
 
 
 
—
 
 
 
—
 
 
 
15,495
 
 
 
15,495
 
Construction
 
 
—
 
 
 
—
 
 
 
—
 
 
 
964
 
 
 
964
 
Nonresidential real estate and land
 
 
—
 
 
 
—
 
 
 
—
 
 
 
11,098
 
 
 
11,098
 
Loans on deposits
 
 
—
 
 
 
—
 
 
 
—
 
 
 
2,281
 
 
 
2,281
 
Consumer and other
 
 
—
 
 
 
—
 
 
 
—
 
 
 
4,865
 
 
 
4,865
 
Total
 
$
4,332
 
 
$
1,794
 
 
$
6,126
 
 
$
177,663
 
 
$
183,789
 
 
Credit Quality Indicators:
 
The Company 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, and current economic trends, among other factors. The Company analyzes loans individually by classifying the loans as to credit risk. This analysis is performed on an annual basis. The Company 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 that are not rated are included in groups of homogeneous loans and are evaluated for credit quality based on performing status. See the aging of past due loan table above. As of June 30, 2013, and 2012, and based on the most recent analysis performed, the risk category of loans by class of loans was as follows:
 
June 30, 2013:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands)
 
Pass
 
 
Special
Mention
 
 
Substandard
 
 
Doubtful
 
 
Not
 rated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
—
 
 
$
4,923
 
 
$
9,832
 
 
$
—
 
 
$
194,337
 
Multi-family
 
 
12,956
 
 
 
—
 
 
 
1,550
 
 
 
—
 
 
 
—
 
Construction
 
 
1,753
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Land
 
 
2,050
 
 
 
—
 
 
 
771
 
 
 
—
 
 
 
—
 
Farm
 
 
1,843
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Nonresidential real estate
 
 
19,246
 
 
 
—
 
 
 
2,846
 
 
 
—
 
 
 
—
 
Commercial and industrial
 
 
3,071
 
 
 
—
 
 
 
118
 
 
 
—
 
 
 
—
 
Consumer and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans on deposits
 
 
2,710
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Home equity
 
 
5,757
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Automobile
 
 
37
 
 
 
—
 
 
 
35
 
 
 
—
 
 
 
—
 
Unsecured
 
 
681
 
 
 
27
 
 
 
—
 
 
 
—
 
 
 
—
 
  
June 30, 2012:
(in thousands)
 
Pass
 
 
Special
Mention
 
 
Substandard
 
 
Doubtful
 
 
Not
rated
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
—
 
 
$
64
 
 
$
3,057
 
 
$
—
 
 
$
145,965
 
Multi-family
 
 
12,692
 
 
 
—
 
 
 
2,803
 
 
 
—
 
 
 
—
 
Construction
 
 
964
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Nonresidential real estate and land
 
 
10,831
 
 
 
267
 
 
 
—
 
 
 
—
 
 
 
—
 
Loans on deposits
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
2,281
 
Consumer and other
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
4,865
 
 
The activity in the allowance for loan losses is summarized as follows for the years ended June 30:
 
(in thousands)
 
2013
 
 
2012
 
 
 
 
 
 
 
 
Balance at beginning of year
 
$
875
 
 
$
764
 
Provision for losses on loans
 
 
662
 
 
 
139
 
Charge-offs
 
 
(227
)
 
 
(28
)
Balance at end of year
 
$
1,310
 
 
$
875
 
 
The following tables present the activity in the allowance for loan losses by portfolio segment for the years ended June 30, 2013 and 2012:
 
June 30, 2013:
(in thousands)
 
Beginning
balance
 
 
Provision
for loan
losses
 
 
Loans
charged off
 
 
Recoveries
 
 
Ending
balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
565
 
 
$
535
 
 
$
(229
)
 
$
—
 
 
$
871
 
Multi-family
 
 
49
 
 
 
14
 
 
 
—
 
 
 
—
 
 
 
63
 
Construction
 
 
3
 
 
 
5
 
 
 
—
 
 
 
—
 
 
 
8
 
Land
 
 
—
 
 
 
12
 
 
 
—
 
 
 
—
 
 
 
12
 
Farm
 
 
—
 
 
 
6
 
 
 
—
 
 
 
—
 
 
 
6
 
Nonresidential real estate
 
 
35
 
 
 
59
 
 
 
—
 
 
 
—
 
 
 
94
 
Commercial and industrial
 
 
—
 
 
 
13
 
 
 
—
 
 
 
—
 
 
 
13
 
Consumer and other:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Loans on deposits
 
 
7
 
 
 
5
 
 
 
—
 
 
 
—
 
 
 
12
 
Home equity
 
 
16
 
 
 
9
 
 
 
—
 
 
 
—
 
 
 
25
 
Automobile
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
—
 
Unsecured
 
 
—
 
 
 
4
 
 
 
—
 
 
 
2
 
 
 
6
 
Unallocated
 
 
200
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
200
 
Totals
 
$
875
 
 
$
662
 
 
$
(229
)
 
$
2
 
 
$
1,310
 
 
June 30, 2012:
(in thousands)
 
Beginning
balance
 
 
Provision
for loan
losses
 
 
Loans
charged off
 
 
Recoveries
 
 
Ending
balance
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Residential real estate:
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
One- to four-family
 
$
490
 
 
$
79
 
 
$
(4
)
 
$
—
 
 
$
565
 
Multi-family
 
 
11
 
 
 
38
 
 
 
—
 
 
 
—
 
 
 
49
 
Construction
 
 
5
 
 
 
(2
)
 
 
—
 
 
 
—
 
 
 
3
 
Nonresidential real estate and land
 
 
36
 
 
 
(1
)
 
 
—
 
 
 
—
 
 
 
35
 
Loans on deposits
 
 
8
 
 
 
(1
)
 
 
—
 
 
 
—
 
 
 
7
 
Consumer and other
 
 
14
 
 
 
26
 
 
 
(24
)
 
 
—
 
 
 
16
 
Unallocated
 
 
200
 
 
 
—
 
 
 
—
 
 
 
—
 
 
 
200
 
Totals
 
$
764
 
 
$
139
 
 
$
(28
)
 
$
—
 
 
$
875
 
   
Purchased Loans:
 
The Company purchased loans during the fiscal year just ended for which there was, at acquisition, evidence of deterioration of credit quality since origination and it was probable, at acquisition, that all contractually required payments would not be collected. The carrying amount of those loans, net of a credit quality component of $1.2 million, is as follows:
 
(in thousands)
 
2013
 
 
 
 
 
Residential real estate:
 
 
 
 
One- to four-family
 
$
2,989
 
Land
 
 
485
 
Nonresidential real estate
 
 
546
 
Commercial non-mortgage loans
 
 
119
 
Consumer loans
 
 
23
 
Outstanding balance
 
$
4,162
 
 
Accretable yield, or income expected to be collected, is as follows
 
(in thousands)
 
 
 
 
 
 
 
 
 
Balance at July 1, 2012
 
$
—
 
New loans purchased
 
 
1,423
 
Accretion of income
 
 
(129)
 
Reclassifications from nonaccretable difference
 
 
—
 
Disposals
 
 
—
 
Balance at June 30, 2013
 
$
1,294
 
 
For those purchased loans disclosed above, the Company made no increase in allowance for loan losses for the year ended June 30, 2013, nor were any allowance for loan losses reversed during that year.