Note 2 - Recent Accounting Pronouncements	6 Months Ended
Dec. 31, 2018
Notes to Financial Statements
New Accounting Pronouncements and Changes in Accounting Principles [Text Block]	2. Recent Accounting Pronouncements In May 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014 - 09, Revenue from Contracts with Customers (Topic 606 ) (“ASU 2014 - 09” ). ASU 2014 - 09 implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU 2014 - 09 is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU 2015 - 14, Revenue from Contracts with Customers (Topic 606 ) (“ASU 2015 - 14” ) was issued in August 2015 which deferred adoption to annual reporting periods beginning after December 15, 2017, which was adopted during the three months ended September 30, 2018. The timing of the Company’s revenue recognition did not change. The Company’s largest portions of revenue, interest and fees on loans, interest and dividend income on securities and short-term investments, bank-owned life insurance income, and gain on sales of loans, are specifically excluded from the scope of the guidance. Additionally, fees for other services to customers includes loan servicing fee income which is accounted for under ASC Topic 860, Transfers and Servicing , (“Topic 860” ), and is not subject to Topic 606. The other component of fees for other services to customers is deposit fees. The majority of the Company’s deposit fees are specifically related to a customer accessing its funds, in which case the revenue is currently recognized in a consistent manner with Topic 606. Revenue that is not specifically related to a customer accessing its funds (i.e. account maintenance fees), can be waived; however, the amount of waived fees is not considered material, and thus the revenue is consistently recognized with Topic 606. All other revenue is also recognized in a manner consistent with Topic 606. Because of the above, management believes that revenue recognized under the new guidance approximates revenue recognized under current GAAP. In January 2016, the FASB issued ASU 2016 - 01, Financial Instruments—Overall (Subtopic 825 - 10 ): Recognition and Measurement of Financial Assets and Financial Liabilities (“ASU 2016 - 01” ). This guidance changes how entities account for equity investments that do not result in consolidation and are not accounted for under the equity method of accounting. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do not have readily determinable fair values; however, the exception requires the Company to adjust the carrying amount for impairment and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This guidance also changes certain disclosure requirements and other aspects of current GAAP. The Company adopted this guidance during the three months ended September 30, 2018. This adoption resulted in a reclassification of $180 thousand from accumulated other comprehensive loss to retained earnings in the consolidated financial statements, with no net effect on shareholders' equity. In addition, the disclosure of the fair value of “Loans, net” in “Notes to Unaudited Consolidated Financial Statements – Note 10: Fair Value Measurements” is now calculated based on an exit pricing strategy versus an entry pricing strategy. In February 2016, the FASB issued ASU 2016 - 02, Leases (Topic 842 ) (“ASU 2016 - 02” ). The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities will be required to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. This guidance is effective for fiscal years beginning after December 15, 2018, including interim periods within the fiscal year. The Company is currently evaluating the impact of the adoption of ASU 2016 - 02 to determine the potential impact it will have on its consolidated financial statements. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments for leases in place at the adoption date; however, this is not expected to be material to the Company’s results of operations. In June 2016, the FASB issued ASU 2016 - 13, Financial Instruments – Credit Losses (Topic 326 ) (“ASU 2016 - 13” ). This guidance is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this guidance replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for fiscal years beginning after December 15, 2019. Early adoption is available as of the fiscal year beginning after December 15, 2018. The Company is evaluating the provisions of the guidance, and will closely monitor developments and additional guidance to determine the potential impact on the Company’s consolidated financial statements. Management is in the process of identifying the methodologies and the additional data requirements necessary to implement the guidance and has engaged an existing third -party service provider to assist in implementation. In May 2017, the FASB issued ASU 2017 - 09, Compensation – Stock Compensation (Topic 718 ): Scope of Modification Accounting (“ASU 2017 - 09” ) which amends the scope of modification accounting for share-based payment arrangements. This update provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. Specifically, an entity would not apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. This update was adopted during the three months ended September 30, 2018 and did not have an impact on the Company’s consolidated financial statements. In August 2017, the FASB issued ASU 2017 - 12, Derivatives and Hedging (Topic 815 ) (“ASU 2017 - 12” ). This guidance permits hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk, and improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2018, and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In July 2018, the FASB issued ASU 2018 - 10, Codification Improvements to Topic 842, Leases (“ASU 2018 - 10” ) and ASU 2018 - 11, Leases (Topic 842 ) (“ASU 2018 - 11” ). The guidance provides clarification on the application of ASU 2016 - 02, specifically on certain narrow aspects of the guidance issued under ASU 2016 - 02, including comparative reporting requirements for initial adoption and, for lessors only, separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components. For entities that have not adopted ASU 2016 - 02 before the issuance of these updates, the amendments in this guidance are the same as the effective date and transition requirements in ASU 2016 - 02. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements. In August 2018, the FASB issued ASU 2018 - 13, Fair Value Measurements (Topic 820 ) (“ASU 2018 - 13” ). This update modifies disclosure requirements on fair value measurements in Topic 820, Fair Value Measurement. This includes removing requirements related to transfers between Level 1 and Level 2, the policy of timing of transfers between levels, and the valuation process for Level 3 fair value measurements, modifying disclosure requirements related to investments in certain entities that calculate net asset value, and adding disclosure requirements for changes in unrealized gains and losses for recurring Level 3 fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level 3 fair value measurements. The amendments in this guidance are effective for public business entities for fiscal years beginning after December 15, 2019, and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is not expected to have a significant impact on the Company’s consolidated financial statements.

Recent Accounting Pronouncements

May 2014,

the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”)

2014

09,

Revenue from Contracts with Customers (Topic

606

)

(“ASU

2014

09”

). ASU

2014

implements a common revenue standard that clarifies the principles for recognizing revenue. The core principle of ASU

2014

is that an entity should recognize revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. To achieve that core principle, an entity should apply the following steps: (i) identify the contract(s) with a customer, (ii) identify the performance obligations in the contract, (iii) determine the transaction price, (iv) allocate the transaction price to the performance obligations in the contract and (v) recognize revenue when (or as) the entity satisfies a performance obligation. ASU

2015

14,

Revenue from Contracts with Customers

(Topic

606

)

(“ASU

2015

14”

) was issued in

August 2015

which deferred adoption to annual reporting periods beginning after

December 15, 2017,

which was adopted during the

three

months ended

September 30, 2018.

The timing of the Company’s revenue recognition did

not

change. The Company’s largest portions of revenue, interest and fees on loans, interest and dividend income on securities and short-term investments, bank-owned life insurance income, and gain on sales of loans, are specifically excluded from the scope of the guidance. Additionally, fees for other services to customers includes loan servicing fee income which is accounted for under ASC Topic

860,

Transfers and Servicing

, (“Topic

860”

), and is

not

subject to Topic

606.

The other component of fees for other services to customers is deposit fees. The majority of the Company’s deposit fees are specifically related to a customer accessing its funds, in which case the revenue is currently recognized in a consistent manner with Topic

606.

Revenue that is

not

specifically related to a customer accessing its funds (i.e. account maintenance fees), can be waived; however, the amount of waived fees is

not

considered material, and thus the revenue is consistently recognized with Topic

606.

All other revenue is also recognized in a manner consistent with Topic

606.

Because of the above, management believes that revenue recognized under the new guidance approximates revenue recognized under current GAAP.

January 2016,

the FASB issued ASU

2016

01,

Financial Instruments—Overall (Subtopic

825

): Recognition and Measurement of Financial Assets and Financial Liabilities

(“ASU

2016

01”

). This guidance changes how entities account for equity investments that do

not

result in consolidation and are

not

accounted for under the equity method of accounting. Entities will be required to measure these investments at fair value at the end of each reporting period and recognize changes in fair value in net income. A practicability exception will be available for equity investments that do

not

have readily determinable fair values; however, the exception requires the Company to adjust the carrying amount for impairment and observable price changes in orderly transactions for the identical or a similar investment of the same issuer. This guidance also changes certain disclosure requirements and other aspects of current GAAP. The Company adopted this guidance during the

three

months ended

September 30, 2018.

This adoption resulted in a reclassification of

$180

thousand from accumulated other comprehensive loss to retained earnings in the consolidated financial statements, with

net effect on shareholders' equity. In addition, the disclosure of the fair value of “Loans, net” in “Notes to Unaudited Consolidated Financial Statements – Note

10:

Fair Value Measurements” is now calculated based on an exit pricing strategy versus an entry pricing strategy.

February 2016,

the FASB issued ASU

2016

02,

Leases (Topic

842

)

(“ASU

2016

02”

). The new guidance establishes the principles to report transparent and economically neutral information about the assets and liabilities that arise from leases. Entities will be required to recognize the lease assets and lease liabilities that arise from leases in the statement of financial position and to disclose qualitative and quantitative information about lease transactions, such as information about variable lease payments and options to renew and terminate leases. This guidance is effective for fiscal years beginning after

December 15, 2018,

including interim periods within the fiscal year. The Company is currently evaluating the impact of the adoption of ASU

2016

to determine the potential impact it will have on its consolidated financial statements. The Company’s assets and liabilities will increase based on the present value of the remaining lease payments for leases in place at the adoption date; however, this is

not

expected to be material to the Company’s results of operations.

June 2016,

the FASB issued ASU

2016

13,

Financial Instruments

–

Credit Losses (Topic

326

)

(“ASU

2016

13”

). This guidance is intended to provide financial statement users with more decision-useful information about the expected credit losses on financial instruments and other commitments to extend credit held by a reporting entity at each reporting date. To achieve this objective, the amendments in this guidance replace the incurred loss impairment methodology in current GAAP with a methodology that reflects expected credit losses and requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. This ASU will be effective for fiscal years beginning after

December 15, 2019.

Early adoption is available as of the fiscal year beginning after

December 15, 2018.

The Company is evaluating the provisions of the guidance, and will closely monitor developments and additional guidance to determine the potential impact on the Company’s consolidated financial statements. Management is in the process of identifying the methodologies and the additional data requirements necessary to implement the guidance and has engaged an existing

third

-party service provider to assist in implementation.

May 2017,

the FASB issued ASU

2017

09,

Compensation

–

Stock Compensation

(Topic

718

): Scope of Modification Accounting

(“ASU

2017

09”

) which amends the scope of modification accounting for share-based payment arrangements. This update provides guidance on the types of changes to the terms or conditions of share-based payment awards to which an entity would be required to apply modification accounting. Specifically, an entity would

not

apply modification accounting if the fair value, vesting conditions, and classification of the awards are the same immediately before and after the modification. This update was adopted during the

three

months ended

September 30, 2018

and did

not

have an impact on the Company’s consolidated financial statements.

August 2017,

the FASB issued ASU

2017

12,

Derivatives and Hedging (Topic

815

)

(“ASU

2017

12”

). This guidance permits hedge accounting for risk components in hedging relationships involving nonfinancial risk and interest rate risk, and improves the financial reporting of hedging relationships to better portray the economic results of an entity’s risk management activities in its financial statements. The amendments in this guidance are effective for public business entities for fiscal years beginning after

December 15, 2018,

and interim periods within those fiscal years. Early adoption is permitted, including adoption in an interim period. The adoption of this guidance is

not

expected to have a significant impact on the Company’s consolidated financial statements.

July 2018,

the FASB issued ASU

2018

10,

Codification Improvements to Topic

842,

Leases

(“ASU

2018

10”

) and ASU

2018

11,

Leases (Topic

842

)

(“ASU

2018

11”

). The guidance provides clarification on the application of ASU

2016

02,

specifically on certain narrow aspects of the guidance issued under ASU

2016

02,

including comparative reporting requirements for initial adoption and, for lessors only, separating lease and non-lease components in a contract and allocating the consideration in the contract to the separate components. For entities that have

not

adopted ASU

2016

before the issuance of these updates, the amendments in this guidance are the same as the effective date and transition requirements in ASU

2016

02.

The adoption of this guidance is

not

expected to have a significant impact on the Company’s consolidated financial statements.

August 2018,

the FASB issued ASU

2018

13,

Fair Value Measurements (Topic

820

)

(“ASU

2018

13”

). This update modifies disclosure requirements on fair value measurements in Topic

820,

Fair Value Measurement. This includes removing requirements related to transfers between Level

and Level

the policy of timing of transfers between levels, and the valuation process for Level

fair value measurements, modifying disclosure requirements related to investments in certain entities that calculate net asset value, and adding disclosure requirements for changes in unrealized gains and losses for recurring Level

fair value measurements and the range and weighted average of significant unobservable inputs used to develop Level

fair value measurements. The amendments in this guidance are effective for public business entities for fiscal years beginning after

December 15, 2019,

and interim periods within those fiscal years. Early adoption is permitted. The adoption of this guidance is

not

expected to have a significant impact on the Company’s consolidated financial statements.