Note 12 - Fair Value of Financial Instruments

12 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Text Block]

Note

– Fair Value of Financial Instruments:

In accordance with ASC

825

50,

the following table summarizes the estimated fair value of financial instruments as of

June 30, 2017,

and

June

30,

2016,

and includes financial instruments that are

not

accounted for or carried at fair value. In accordance with disclosure guidance, certain financial instruments, including all lease related assets and liabilities and all non-financial instruments are excluded from fair value of financial instrument disclosure requirements. Accordingly, the aggregate of the fair values presented does

not

represent the total underlying value of the Company. These fair value estimates are based on relevant market information and data, however, given there is

active market or observable market transactions for certain financial instruments, the Company has made estimates of fair values which are subjective in nature, involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimated values.

For cash and cash equivalents and demand and savings deposits, because of their short-term nature, the carrying amounts approximate the fair value and are classified as Level

in the fair value hierarchy. Values for investments and available-for-sale securities are determined as set forth in Note

and

11.

The fair values of loan participations that trade regularly in the secondary market are based upon current bid prices in such market at the measurement date and are classified as Level

in the fair value hierarchy. For other loans, the estimated fair value is calculated based on discounted cash flow analyses, using interest rates currently being offered for loans with similar terms to borrowers of similar credit quality and are classified as Level

in the fair value hierarchy. These calculations have been adjusted for credit risk based on the Company’s historical credit loss experience. The fair value of certificates of deposit and short-term borrowings are estimated based on discounted cash flows using current offered market rates or interest rates for borrowings of similar maturity and are classified as Level

in the fair value hierarchy.

The estimated fair values of financial instruments were as follows:

	June 30, 2017				June 30, 2016
	Carrying		Estimated		Carrying		Estimated
	Amount		Fair Value		Amount		Fair Value
	(in thousands)
Financial Assets:
Cash and cash equivalents	$	96,055	$	96,055	$	105,094	$	105,094
Investments		4,281		4,294		3,957		3,972
Securities available-for-sale		95,509		95,509		95,844		95,844
Commercial loan participations		295,280		295,556		389,511		388,781
Other loans		10,729		10,726		14,225		14,512
Financial Liabilities:
Demand and savings deposits		90,867		90,867		81,989		81,989
Time certificate of deposits		377,767		379,963		551,158		551,508
Short-term borrowings	$	40,000	$	40,000	$	40,000	$	40,001

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

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