Note 9 - Commercial Loans

3 Months Ended

Sep. 30, 2016

NOTE 9 – COMMERCIAL LOANS

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

	September 30,			June 30,
	2016			2016
	(in thousands)
Commercial term loans	$	417,271		$	399,239
Commercial real estate loans		6,571			6,682
Revolving lines of credit		4,414			3,405
Total commercial loans		428,256			409,326
Less unearned income and discounts		(878	)		(1,018	)
Less allowance for loan losses		(4,872	)		(4,572	)
Net commercial loans	$	422,506		$	403,736

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 $2.0 million at September 30, 2016 and $524,000 at June 30, 2016. The Company has a recorded liability for unfunded loan commitments of $50,000 at September 30, 2016 and at June 30, 2016 related to such commitments.