Note 9 - Commercial Loans (Commercial Loan [Member])

6 Months Ended

Dec. 31, 2012

Commercial Loan [Member]

Financing Receivables [Text Block]

NOTE 9 – COMMERCIAL LOANS

The Company’s investment in commercial loans consists of the following:

	December 31, 2012			June 30, 2012
	(in thousands)
Commercial term loans	$	81,795		$	69,221
Commercial real estate loans		10,803			13,504
Revolving lines of credit		1,689			3,019
Total commercial loans		94,287			85,744
Less unearned income and discounts		(683	)		(762	)
Less allowance for loan losses		(1,972	)		(2,072	)
Net commercial loans	$	91,632		$	82,910

Commercial loans are reported at their outstanding unpaid principal balances reduced by the allowance for loan losses and net of any deferred fees or costs on originated loans, or unamortized premiums or discounts on purchased loans. Interest income is accrued on the unpaid principal balance. Loan origination fees and certain direct origination costs are capitalized and recognized as an adjustment of the yield of the related commercial loan.

In addition to the amount outstanding on revolving lines of credit set forth above, the Company had additional unused commitments on revolving lines of credit in the amount of $21.2 million at December 31, 2012 and $16.1 million at June 30, 2012. The Company has recorded a liability for unfunded loan commitments of $25,000 at December 31 and June 30, 2012 related to such commitments.