Note 2 - Investments

12 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Investment [Text Block]

Note

2

– Investments

Investments are carried at cost and consist of the following:

	June 30, 2017				June 30, 2016
	Carrying Cost		Fair Value		Carrying Cost		Fair Value
	(in thousands)
Federal Reserve Bank Stock	$	1,955	$	1,955	$	1,955	$	1,955
Federal Home Loan Bank Stock		2,213		2,213		1,886		1,886
Mortgage-backed investment		113		126		116		131
	$	4,281	$	4,294	$	3,957	$	3,972

The investment in Federal Home Loan Bank of San Francisco (“FHLB”) stock is a required investment related to CalFirst Bank’s borrowing relationship with the FHLB. The FHLB obtains its funding primarily through issuance of consolidated obligations of the Federal Home Loan Bank system. The U.S. Government does

not

guarantee these obligations, and each of the

twelve

FHLB’s are generally jointly and severally liable for repayment of each other’s debt. Therefore, the Company’s investment could be adversely impacted by the financial operations of the FHLB and actions by the Federal Housing Finance Agency. These investments have

no

stated maturity.

CalFirst Bank is required to hold Federal Reserve Bank stock equal to

6%

of its capital surplus, which is defined as additional paid-in capital stock, less any gains (losses) on available for sale securities as of the current period end.

The mortgage-backed investment consists of

one

U.S. agency issued security. The Company has determined that it has the ability to hold this investment until maturity and, given the Company’s intent to do so, anticipates that it will realize the full carrying value of its investment and carries the security at amortized cost.