10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

[X] QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2015

or

[  ] TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from               to              

Commission File Number: 0-22444

WVS Financial Corp.
(Exact name of registrant as specified in its charter)
Pennsylvania	25-1710500
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification Number)
9001 Perry Highway Pittsburgh, Pennsylvania	15237
(Address of principal executive offices)	(Zip Code)
(412) 364-1911
(Registrant’s telephone number, including area code)

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirement for the past 90 days.       YES  X   NO     

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).      YES  X   NO     

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer	Accelerated filer
Non-accelerated filer          (Do not check if a smaller reporting company)	Smaller reporting company   X

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12 b-2 of the Exchange Act).       YES        NO  X 

Shares outstanding as of November 9, 2015: 2,039,129 shares of Common Stock, $.01 par value.

WVS FINANCIAL CORP. AND SUBSIDIARY

INDEX

PART I.	Financial Information	Page
Item 1.	Financial Statements
	Consolidated Balance Sheet as of September 30, 2015 and June 30, 2015 (Unaudited)	3
	Consolidated Statement of Income for the Three Months Ended September 30, 2015 and 2014 (Unaudited)	4
	Consolidated Statement of Comprehensive Income for the Three Months Ended September 30, 2015 and 2014 (Unaudited)	5
	Consolidated Statement of Changes in Stockholders’ Equity for the Three Months Ended September 30, 2015 (Unaudited)	6
	Consolidated Statement of Cash Flows for the Three Months Ended September 30, 2015 and 2014 (Unaudited)	7
	Notes to Unaudited Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three Months Ended September 30, 2015	41
Item 3.	Quantitative and Qualitative Disclosures about Market Risk	47
Item 4.	Controls and Procedures	53
PART II.	Other Information	Page
Item 1.	Legal Proceedings	54
Item 1A.	Risk Factors	54
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	54
Item 3.	Defaults Upon Senior Securities	55
Item 4.	Mine Safety Disclosures	55
Item 5.	Other Information	55
Item 6.	Exhibits	56
	Signatures	57

2

WVS FINANCIAL CORP. AND SUBSIDIARY

CONSOLIDATED BALANCE SHEET

(UNAUDITED)

(In thousands)

	September 30, 2015			June 30, 2015
Assets
Cash and due from banks		$      1,575			$      1,839
Interest-earning demand deposits		394			1,734
Total cash and cash equivalents		1,969			3,573
Certificates of deposit		350			350
Investment securities available-for-sale (amortized cost of $89,238 and $66,968)		89,199			66,916
Investment securities held-to-maturity (fair value of $25,592 and $36,979)		25,123			36,618
Mortgage-backed securities held-to-maturity (fair value of $152,281 and $163,265)		151,428			162,639
Net loans receivable (allowance for loan losses of $323 and $304)		52,543			46,163
Accrued interest receivable		1,387			1,198
Federal Home Loan Bank (FHLB) stock, at cost		6,482			6,619
Premises and equipment, net		611			630
Bank owned life insurance		4,310			4,276
Deferred tax assets (net)		495			524
Other assets		192			210
TOTAL ASSETS		$  334,089			$  329,716
Liabilities and Stockholders’ Equity
Liabilities:
Deposits
Non-interest-bearing accounts		$    16,512			$    17,806
NOW accounts		20,205			20,238
Savings accounts		44,686			45,092
Money market accounts		24,183			23,601
Certificates of deposit		30,059			31,326
Advance payments by borrowers for taxes and insurance		853			865
Total deposits		136,498			138,928
Federal Home Loan Bank advances: long-term – fixed rate		12,500			12,500
Federal Home Loan Bank advances: long-term – variable rate		105,305			105,305
Federal Home Loan Bank advances: short-term		38,392			37,830
Other short-term borrowings		7,950			-
Accrued interest payable		164			156
Other liabilities		969			2,954
TOTAL LIABILITIES		301,778			297,673
Stockholders’ equity:
Preferred stock:
5,000,000 shares, no par value per share, authorized; none issued		-			-
Common stock:
10,000,000 shares, $.01 par value per share, authorized; 3,805,636 shares issued; 2,039,129 and 2,040,719 shares outstanding		38			38
Additional paid-in capital		21,485			21,485
Treasury stock: 1,766,507 and 1,764,917 shares at cost, respectively		(26,905	)		(26,886	)
Retained earnings, substantially restricted		39,583			39,353
Accumulated other comprehensive loss		(417	)		(461	)
Unallocated Employee Stock Ownership Plan (“ESOP”) shares		(1,473	)		(1,486	)
TOTAL STOCKHOLDERS’ EQUITY		32,311			32,043
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY		$  334,089			$  329,716

See accompanying notes to unaudited consolidated financial statements.

3

WVS FINANCIAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF INCOME

(UNAUDITED)

(In thousands, except per share data)

	Three Months Ended     September 30,
	2015		2014
INTEREST AND DIVIDEND INCOME:
Loans, including fees		$          522		$          373
Investment securities—taxable		507		295
Mortgage-backed securities		514		796
Certificates of deposit		2		2
FHLB Stock		92		54
Total interest and dividend income		1,637		1,520
INTEREST EXPENSE:
Deposits		52		59
Federal Home Loan Bank advances – long-term – fixed rate		142		142
Federal Home Loan Bank advances – long-term – variable rate		83		70
Federal Home Loan Bank advances – short-term		28		17
Other short-term borrowings		6		-
Total interest expense		311		288
NET INTEREST INCOME		1,326		1,232
PROVISION FOR LOAN LOSSES		19		3
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		1,307		1,229
NON-INTEREST INCOME:
Service charges on deposits		43		41
Earnings on Bank Owned Life Insurance		34		35
Other		62		62
Total non-interest income		139		138
NON-INTEREST EXPENSE:
Salaries and employee benefits		544		533
Occupancy and equipment		84		77
Data processing		59		59
Correspondent bank service charges		9		10
Federal deposit insurance premium		50		46
Other		197		190
Total non-interest expense		943		915
INCOME BEFORE INCOME TAXES		503		452
INCOME TAX EXPENSE		192		153
NET INCOME		$          311		$          299
EARNINGS PER SHARE:
Basic		$         0.16		$         0.15
Diluted		$         0.16		$         0.15
AVERAGE SHARES OUTSTANDING:
Basic		1,909,262		1,959,381
Diluted		1,909,262		1,959,381

See accompanying notes to unaudited consolidated financial statements.

4

WVS FINANCIAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

(UNAUDITED)

(In thousands)

	Three Months Ended September 30,
	2015		2014
NET INCOME	$	311	$	299
OTHER COMPREHENSIVE INCOME (LOSS)
Investment securities available for sale not other-than-temporarily impaired:
Gains (losses) arising during the year		12		(62	)
Less: Income tax effect		4		(21	)
		8		(41	)
Unrealized holding gains (losses) on investment securities available for sale not other-than-temporarily impaired, net of tax		8		(41	)
Investment securities held to maturity other-than-temporarily impaired:
Accretion of other comprehensive loss on other-than-temporarily impaired securities held to maturity		54		61
Less: Income tax effect		18		21
		36		40
Unrealized holding gains on other-than-temporarily impaired securities held to maturity, net of tax		36		40
Other comprehensive income (loss)		44		(1	)
COMPREHENSIVE INCOME	$	355	$	298

See accompanying notes to unaudited consolidated financial statements.

5

WVS FINANCIAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS’ EQUITY

(UNAUDITED)

(In thousands)

	Common     Stock		Additional Paid-in     Capital		Treasury     Stock			Retained Earnings –     Substantially     Restricted			Accumulated Other     Comprehensive     Loss			Unallocated     ESOP Shares			Total
Balance June 30, 2015		$    38		$ 21,485		$(26,886	)		$ 39,353			$ (461	)		$    (1,486	)		$32,043
Net income									311									311
Other comprehensive income												44						44
Purchase of treasury stock (1,590 shares)						(19	)											(19	)
Release of ESOP shares															13			13
Cash dividends declared ($0.04 per share)									(81	)								(81	)
Balance September 30, 2015		$    38		$ 21,485		$(26,905	)		$ 39,583			$ (417	)		$ (1,473	)		$32,311

See accompanying notes to unaudited consolidated financial statements.

6

WVS FINANCIAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

(In thousands)

	Three Months Ended September 30,
	2015			2014
OPERATING ACTIVITIES
Net income	$	311		$	299
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Provision for loan losses		20			3
Depreciation		25			20
Gain on sale of other real estate owned		-			(5	)
Amortization of discounts, premiums and deferred loan fees		487			120
Deferred income taxes		24			(4	)
Increase in prepaid/accrued income taxes		35			37
Earnings on bank owned life insurance		(34	)		(35	)
Increase in accrued interest receivable		(189	)		(285	)
Increase (decrease) in accrued interest payable		8			(2	)
Increase (decrease) in deferred director compensation payable		-			8
Decrease in unsettled security purchases		(1,969	)		-
Other, net		(49	)		(152	)
Net cash provided by (used for) operating activities		(1,331	)		4
INVESTING ACTIVITIES
Available-for-sale:
Purchases of investment securities		(24,838	)		-
Proceeds from repayments of investment securities		2,058			1,208
Held-to-maturity:
Purchases of investment securities		(9,358	)		(18,380	)
Purchases of mortgage-backed securities		-			(6,081	)
Proceeds from repayments of investment securities		20,866			4,158
Proceeds from repayments of mortgage-backed securities		11,274			13,736
Purchases of certificates of deposit		(100	)		(100	)
Maturities/redemptions of certificates of deposit		100			348
Increase in net loans receivable		(6,401	)		(1,377	)
Proceeds from sale of other real estate owned		-			251
Purchase of FHLB stock		(1,643	)		(1,214	)
Redemption of FHLB stock		1,780			745
Acquisition of premises and equipment		(6	)		(46	)
Net cash used for investing activities		(6,268	)		(6,752	)

7

WVS FINANCIAL CORP. AND SUBSIDIARY

CONSOLIDATED STATEMENT OF CASH FLOWS

(UNAUDITED)

(In thousands)

	Three Months Ended September 30,
	2015			2014
FINANCING ACTIVITIES
Net increase (decrease) in transaction and savings accounts		$ (1,151	)		$  1,505
Net decrease in certificates of deposit		(1,267	)		(1,189	)
Net decrease in advance payments by borrowers for taxes and insurance		(12	)		(321	)
Proceeds from FHLB long-term advances – variable rate		-			6,109
Net increase in FHLB short-term advances		562			1,127
Net increase in other short-term borrowings		7,950			-
Purchase of treasury stock		(19	)		(72	)
Increase in unallocated ESOP shares		-			(156	)
Release of ESOP shares		13			-
Cash dividends paid		(81	)		(82	)
Net cash provided by financial activities		5,995			6,921
Increase (decrease) in cash and cash equivalents		(1,604	)		173
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD		3,573			1,360
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD		$  1,969			$  1,533
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid during the period for:
Interest on deposits and borrowings		$     303			$     290
Income taxes		150			127
Non-cash items:
Educational Improvement Tax Credit		$         -			$         9
Mortgage loans transferred to other real estate owned		-			246

See accompanying notes to unaudited consolidated financial statements.

8

WVS FINANCIAL CORP. AND SUBSIDIARY

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

1. BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (GAAP). However, all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation have been included. The results of operations for the three months ended September 30, 2015, are not necessarily indicative of the results which may be expected for the entire fiscal year.

2. RECENT ACCOUNTING PRONOUNCEMENTS

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit). The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014. Early adoption is permitted. This Update did not have a significant impact on the Company’s financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method. This Update did not have a significant impact on the Company’s financial statements.

In May 2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update’s core principle is that a company will recognize revenue to depict the transfer of 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. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December 15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

9

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures. The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting. For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement. The amendments also require enhanced disclosures. The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014. An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited. The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date. The Company has included the disclosures related to this Update in Note 11.

In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period. The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost. This Update is not expected to have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40). The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met: (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed. Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. This Update did not have a significant impact on the Company’s financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40). The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management’s responsibility to evaluate whether there is substantial doubt about an entity’s ability to continue as a going concern and to provide related footnote disclosures. The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

10

In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force). This Update clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company’s financial statements.

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity. An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity’s most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company’s financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards. This Update eliminates from U.S. GAAP the concept of extraordinary items. The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity may also apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption. This Update is not expected to have a significant impact on the Company’s financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810). The amendments in this Update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related-party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds. The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), as part of its initiative to reduce complexity in accounting standards. To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update. For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments

11

in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016. An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2015, the FASB issued ASU 2015-04, Compensation – Retirement Benefits (Topic 715), as part of its initiative to reduce complexity in accounting standards. For an entity with a fiscal year-end that does not coincide with a month-end, the amendments in this Update provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity’s fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Earlier application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract. For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities. This Update is not expected to have a significant impact on the Company’s financial statements.

In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions. Topic 260, Earnings Per Share, contains guidance that addresses master limited partnerships that originated from Emerging Issues Task Force (“EITF”) Issue No. 07-4, Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships. Under Topic 260, master limited partnerships apply the two-class method of calculating earnings per unit because the general partner, limited partners, and incentive distribution rights holders each participate differently in the distribution of available cash in accordance with the contractual rights contained in the partnership agreement. The amendments in this Update specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners (which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method are also required. The amendments in this Update are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

12

In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent). The Update applies to reporting entities that elect to measure the fair value of an investment using the net asset value per share (or its equivalent) practical expedient. Under the amendments in this Update, investments for which fair value is measured at net asset value per share (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy. Removing those investments from the fair value hierarchy not only eliminates the diversity in practice resulting from the way in which investments measured at net asset value per share (or its equivalent) with future redemption dates are classified, but also ensures that all investments categorized in the fair value hierarchy are classified using a consistent approach. Investments that calculate net asset value per share (or its equivalent), but for which the practical expedient is not applied will continue to be included in the fair value hierarchy. A reporting entity should continue to disclose information on investments for which fair value is measured at net asset value (or its equivalent) as a practical expedient to help users understand the nature and risks of the investments and whether the investments, if sold, are probable of being sold at amounts different from net asset value. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity’s financial statements. Earlier application is permitted. This Update is not expected to have a significant impact on the Company’s financial statements.

In May 2015, the FASB issued ASU 2015-08, Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. This Update was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115. This Update did not have a significant impact on the Company’s financial statements.

In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts. The amendments apply to all insurance entities that issue short-duration contracts as defined in Topic 944, Financial Services – Insurance. The amendments require insurance entities to disclose for annual reporting periods certain information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including reasons for the change and the effects on the financial statements. Additionally, the amendments require insurance entities to disclose for annual and interim reporting periods a rollforward of the liability for unpaid claims and claim adjustment expenses, described in Topic 944. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016. For all other entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2017. This Update is not expected to have a significant impact on the Company’s financial statements.

In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements. The amendments in this Update represent changes to clarify the FASB Accounting Standards Codification (“Codification”), correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this Update. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this Update. This Update is not expected to have a significant impact on the Company’s financial statements.

13

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year. Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period. All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019. The Company is evaluating the effect of adopting this new accounting Update.

In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation And Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting. This Update adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements. This Update is not expected to have a significant impact on the Company’s financial statements.

In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805). The amendments in this Update require that an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period’s financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date. The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date. For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. This Update is not expected to have a significant impact on the Company’s financial statements.

3. EARNINGS PER SHARE

The following table sets forth the computation of the weighted-average common shares used to calculate basic and diluted earnings per share.

	Three Months Ended September 30,
	2015			2014
Weighted average common shares issued		3,805,636			3,805,636
Average treasury stock shares		(1,766,351	)		(1,754,526	)
Average unallocated ESOP shares		(130,023	)		(91,729	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share		1,909,262			1,959,381
Additional common stock equivalents (stock options) used to calculate diluted earnings per share		-			-
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share		1,909,262			1,959,381

14

There are no convertible securities that would affect the numerator in calculating basic and diluted earnings per share; therefore, net income as presented on the Consolidated Statement of Income is used.

At September 30, 2015, there were 114,519 options outstanding with an exercise price of $16.20 which were anti-dilutive for the three month period. At September 30, 2014 there were 114,519 options outstanding with an exercise price of $16.20 which were anti-dilutive for the three month period.

4. STOCK BASED COMPENSATION DISCLOSURE

The Company’s 2008 Stock Incentive Plan (the “Plan”), which was approved by shareholders in October 2008, permits the grant of stock options or restricted shares to its directors and employees for up to 152,000 shares (up to 38,000 restricted shares may be issued). Option awards are generally granted with an exercise price equal to the market price of the Company’s stock at the date of grant; those option awards generally vest over five years of continuous service and have ten-year contractual terms.

During the three month periods ended September 30, 2015 and 2014, the Company recorded no compensation expense related to our share-based compensation awards. As of September 30, 2015, there was no unrecognized compensation cost related to unvested share-based compensation awards granted in fiscal 2009.

The Company had no non-vested stock options outstanding at September 30, 2015, and 2014. There were no stock options exercised or issued during the three months ended September 30, 2015 and 2014.

5. INVESTMENT SECURITIES

The amortized cost and fair values of investments are as follows:

		Amortized     Cost			Gross     Unrealized     Gains			Gross     Unrealized     Losses				Fair         Value
		(Dollars in Thousands)
September 30, 2015
AVAILABLE FOR SALE
Corporate debt securities	$		83,791	$		61	$		(102	)	$		83,750
Foreign debt securities 1			4,745			3			(1	)			4,747
Obligations of states and political subdivisions			702			-			-				702
Total	$		89,238	$		64	$		(103	)	$		89,199

¹  U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.

15

		Amortized     Cost			Gross     Unrealized     Gains			Gross     Unrealized     Losses				Fair         Value
		(Dollars in Thousands)
September 30, 2015
HELD TO MATURITY
U.S. government agency securities	$		16,219	$		38	$		(1	)	$		16,256
Corporate debt securities			3,549			306			-				3,855
Obligations of states and political subdivisions			5,355			126			-				5,481
Total	$		25,123	$		470	$		(1	)	$		25,592
		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value
		(Dollars in Thousands)
June 30, 2015
AVAILABLE FOR SALE
Corporate debt securities	$		60,968	$		63	$		(93	)	$		60,938
Foreign debt securities 2			5,298			-			(17	)			5,281
Obligations of states and political subdivisions			702			-			(5	)			697
Total	$		66,968	$		63	$		(115	)	$		66,916
		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value
		(Dollars in Thousands)
June 30, 2015
HELD TO MATURITY
U.S. government agency securities	$		27,395	$		5	$		(94	)	$		27,306
Corporate debt securities			3,868			371			-				4,239
Obligations of states and political subdivisions			5,355			79			-				5,434
Total	$		36,618	$		455	$		(94	)	$		36,979

There were no sales of investment securities for the three months ended September 30, 2015 and 2014.

²  U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.

16

The amortized cost and fair values of debt securities at September 30, 2015, by contractual maturity, are shown below. Expected maturities may differ from the contractual maturities because issuers may have the right to call securities prior to their final maturities.

		Due in one year or less				Due after one through two years				Due after two through three years				Due after three through five years				Due after five through ten years				Due after ten years				Total
		(Dollars in Thousands)
AVAILABLE FOR SALE
Amortized cost	$		32,638		$		55,607		$		-		$		993		$		-		$		-		$		89,238
Fair value			32,620				55,595				-				985				-				-				89,199
Weighted average yield			1.41	%			1.51	%			-	%			1.68	%			-	%			-	%			1.47	%
HELD TO MATURITY
Amortized cost	$		524		$		1,471		$		1,809		$		1,605		$		14,088		$		5,626		$		25,123
Fair value			548				1,499				1,734				1,734				14,216				5,640				25,592
Weighted average yield			6.15	%			3.46	%			5.29	%			4.96	%			1.82	%			1.75	%			2.44	%

At September 30, 2015, investment securities with amortized costs of $14.7 million and fair values of $14.8 million were pledged to secure borrowings with the Federal Home Loan Bank (FHLB) and broker repurchase agreements. Of the securities pledged, $6.2 million of fair value was excess collateral at the FHLB. Excess collateral is maintained to support future borrowings and may be withdrawn by the Company at any time.

At June 30, 2015, no investment securities were pledged to secure public deposits, broker repurchase agreements, or borrowings with the Federal Home Loan Bank.

6. MORTGAGE-BACKED SECURITIES

Mortgage-backed securities (“MBS”) include mortgage pass-through certificates (“PCs”) and collateralized mortgage obligations (“CMOs”). With a pass-through security, investors own an undivided interest in the pool of mortgages that collateralize the PCs. Principal and interest is passed through to the investor as it is generated by the mortgages underlying the pool. PCs and CMOs may be insured or guaranteed by Freddie Mac (“FHLMC”), Fannie Mae (“FNMA”) and the Government National Mortgage Association (“GNMA”). CMOs may also be privately issued with varying degrees of credit enhancements. A CMO reallocates mortgage pool cash flow to a series of bonds (called traunches) with varying stated maturities, estimated average lives, coupon rates and prepayment characteristics.

The Company’s CMO portfolio is comprised of two segments: CMOs backed by U.S. Government Agencies (“Agency CMOs”) and CMOs backed by single-family whole loans not guaranteed by a U.S. Government Agency (“Private-Label CMOs”).

At September 30, 2015, the Company’s Agency CMOs totaled $149.5 million as compared to $160.6 million at June 30, 2015. The Company’s private-label CMOs totaled $1.9 million at September 30, 2015 as compared to $2.0 million at June 30, 2015. The $11.2 million decrease in the CMO segment of our MBS portfolio was primarily due to repayments on our Agency and private-label CMOs which totaled $11.1 million. During the three months ended September 30, 2015, the Company received principal payments totaling $204 thousand on its private-label CMOs. At September 30, 2015, approximately $151.4 million or 100.0% (book value) of the Company’s MBS portfolio, including CMOs, were comprised of adjustable or floating rate investments, as compared to $162.6 million or 100.0% at June 30, 2015. Substantially all of the Company’s floating rate MBS adjust monthly based upon changes in the one month LIBOR. The Company has no investment in multi-family or commercial real estate based MBS.

17

Due to prepayments of the underlying loans, and the prepayment characteristics of the CMO traunches, the actual maturities of the Company’s MBS are expected to be substantially less than the scheduled maturities.

The Company retains an independent third party to assist it in the determination of a fair value for its three private-label CMOs. This valuation is meant to be a “Level Three” valuation as defined by ASC Topic 820, Fair Value Measurements and Disclosures. The valuation does not represent the actual terms or prices at which any party could purchase the securities. There is currently no active secondary market for private-label CMOs and there can be no assurance that any secondary market for private-label CMOs will develop. The private-label CMO portfolio had three previously recorded other-than-temporary impairments at September 30, 2015. During the three months ending September 30, 2015, the Company reversed $54 thousand of non-credit unrealized holding losses on its three private-label CMOs with other than temporary impairments (“OTTI”) due to principal repayments. During the three months ended September 30, 2015, the Company recorded no additional credit impairment charges on its private-label CMO portfolio.

The Company believes that the data and assumptions used to determine the fair values are reasonable. The fair value calculations reflect relevant facts and market conditions. Events and conditions occurring after the valuation date could have a material effect on the private-label CMO segment’s fair value.

The following table sets forth information with respect to the Company’s private-label CMO portfolio as of September 30, 2015. At the time of purchase, all of our private-label CMOs were rated in the highest investment category by at least two ratings agencies.

		At September 30, 2015
		Rating			Book      Value		Fair   Value3		Life to Date Impairment   Recorded in   Earnings
Cusip #	Security Description	S&P	Moody’s	Fitch	(in thousands)
126694CP1	CWHL SER 21 A11	N/A	Caa2	D	$	1,002	$	1,290	$	201
126694KF4	CWHL SER 24 A15	D	N/A	D		221		234		39
126694KF4	CWHL SER 24 A15	D	N/A	D		442		467		79
126694MP0	CWHL SER 26 1A5	D	N/A	D		210		224		36
					$	1,875	$	2,215	$	355

³  Fair value estimate provided by the Company’s independent third party valuation consultant.

18

The amortized cost and fair values of the Company’s mortgage-backed securities are as follows:

		Amortized    Cost			Gross   Unrealized   Gains			Gross   Unrealized   Losses				Fair     Value
		(Dollars in Thousands)
September 30, 2015
HELD TO MATURITY
Collateralized mortgage obligations:
Agency	$		149,553	$		1,224	$		(711	)	$		150,066
Private-label			1,875			340			-				2,215
Total	$		151,428	$		1,564	$		(711	)	$		152,281
		Amortized    Cost			Gross   Unrealized   Gains			Gross   Unrealized   Losses				Fair     Value
		(Dollars in Thousands)
June 30, 2015
HELD TO MATURITY
Collateralized mortgage obligations:
Agency	$		160,614	$		1,130	$		(909	)	$		160,835
Private-label			2,025			405			-				2,430
Total	$		162,639	$		1,535	$		(909	)	$		163,265

The amortized cost and fair value of the Company’s mortgage-backed securities at September 30, 2015, by contractual maturity, are shown below. Expected maturities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

		Due in      one year      or less				Due after   one through   five years				Due after   five through   ten years				Due after     ten years				Total
										(Dollars in Thousands)
HELD TO MATURITY
Amortized cost	$		-		$		-		$		416		$		151,012		$		151,428
Fair value			-				-				430				151,851				152,281
Weighted average yield			-	%			-	%			1.62	%			1.31	%			1.31	%

At September 30, 2015, mortgage-backed securities with amortized costs of $149.6 million and fair values of $150.1 million were pledged to secure public deposits and borrowings with the Federal Home Loan Bank. Of the securities pledged, $19.2 million of fair value was excess collateral. At June 30, 2015 mortgage-backed securities with an amortized cost of $144.1 million and fair values of $144.2 million, were pledged to secure public deposits and borrowings with the Federal Home Loan Bank. Of the securities pledged, $16.5 million of fair value was excess collateral. Excess collateral is maintained to support future borrowings and may be withdrawn by the Company at any time.

19

7. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the changes in accumulated other comprehensive loss by component, for the three months ended September 30, 2015 and 2014.

	Three Months Ended September 30, 2015
	(Dollars in Thousands – net of tax)
	Unrealized Gains         and Losses on         Available-for-Sale         Securities			Unrealized Gains         and Losses on         Held-to-Maturity         Securities			Total
Beginning Balance – June 30, 2015	$	(35	)	$	(426	)	$	(461	)
Other comprehensive income (loss) before reclassifications		8			36			44
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-
Net current-period other comprehensive income (loss)		8			36			44
Ending Balance – September 30, 2015	$	(27	)	$	(390	)	$	(417	)

	Three Months Ended September 30, 2014
	(Dollars in Thousands – net of tax)
	Unrealized Gains         and Losses on         Available-for-Sale         Securities			Unrealized Gains         and Losses on         Held-to-Maturity         Securities			Total
Beginning Balance – June 30, 2014	$	130		$	(550	)	$	(420	)
Other comprehensive income (loss) before reclassifications		(41	)		40			(1	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-
Net current-period other comprehensive income (loss)		(41	)		40			(1	)
Ending Balance – September 30, 2014	$	89		$	(510	)	$	(421	)

There were no amounts reclassified out of accumulated other comprehensive income for the three months ended September 30, 2015 and 2014.

20

8. UNREALIZED LOSSES ON SECURITIES

The following tables show the Company’s gross unrealized losses and fair value, aggregated by category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2015 and June 30, 2015.

		September 30, 2015
		Less Than Six Months							Six through Twelve Months						Twelve Months or Greater							Total
		Fair Value			Gross Unrealized Losses				Fair Value		Gross Unrealized Losses				Fair Value			Gross Unrealized Losses				Fair Value			Gross Unrealized Losses
			(Dollars in Thousands)
Corporate debt securities	$		38,537	$		(73	)	$	8,115	$		(29	)	$		-	$		-		$		46,652	$		(102	)
Foreign Debt Securities 4			1,574			(1	)		-			-				-			-				1,574			(1	)
U.S. government agency securities			499			(1	)		-			-				-			-				499			(1	)
Obligations of states and political subdivisions			702			-			-			-				-			-				702			-
Collateralized mortgage obligations:
Agency			5,788			(9	)		27,285			(480	)			19,768			(222	)			52,841			(711	)
Total	$		47,100	$		(84	)	$	35,400	$		(509	)	$		19,768	$		(222	)	$		102,268	$		(815	)

		June 30, 2015
		Less Than Six Months							Six through Twelve Months						Twelve Months or Greater							Total
		Fair Value			Gross Unrealized Losses				Fair Value		Gross Unrealized Losses				Fair Value			Gross Unrealized Losses				Fair Value			Gross Unrealized Losses
			(Dollars in Thousands)
Corporate debt securities	$		28,284	$		(88	)	$	1,285	$		(5	)	$		-	$		-		$		29,569	$		(93	)
Foreign Debt Securities 4			4,780			(16	)		501			(1	)			-			-				5,281			(17	)
U.S. government agency securities			21,318			(94	)		-			-				-			-				21,318			(94	)
Obligations of states and political subdivisions			697			(5	)		-			-				-			-				697			(5	)
Collateralized mortgage obligations:
Agency			22,504			(121	)		21,243			(663	)			16,092			(125	)			59,839			(909	)
Total	$		77,583	$		(324	)	$	23,029	$		(669	)	$		16,092	$		(125	)	$		116,704	$		(1,118	)

For debt securities, impairment is considered to be other than temporary if an entity (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its amortized cost basis, or (3) does not expect to recover the security’s entire amortized cost basis (even if the entity does not intend to sell the security). In addition, impairment is considered to be other than temporary if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis of the security (any such shortfall is referred to as a credit loss).

The Company evaluates outstanding available-for-sale and held-to-maturity securities in an unrealized loss position (i.e., impaired securities) for OTTI on a quarterly basis. In doing so, the Company considers many factors including, but not limited to: the credit ratings assigned to the securities by the Nationally Recognized Statistical Rating Organizations (“NRSRO”); other indicators of the credit quality of the issuer; the strength of the provider of any guarantees; the length of time and extent that fair value has

⁴  U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.

21

been less than amortized cost; and whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery. In the case of its private label residential MBS, the Company also considers prepayment speeds, the historical and projected performance of the underlying loans and the credit support provided by the subordinate securities. These evaluations are inherently subjective and consider a number of quantitative and qualitative factors.

The following table presents a roll-forward of the credit loss component of the amortized cost of mortgage-backed securities that we have written down for OTTI and the credit component of the loss that is recognized in earnings. OTTI recognized in earnings for credit impaired mortgage-backed securities is presented as additions in two components based upon whether the current period is the first time the mortgage-backed security was credit-impaired (initial credit impairment) or is not the first time the mortgage-backed security was credit impaired (subsequent credit impairments). The credit loss component is reduced if we sell, intend to sell or believe that we will be required to sell previously credit-impaired mortgage-backed securities. Additionally, the credit loss component is reduced if we receive cash flows in excess of what we expected to receive over the remaining life of the credit impaired mortgage-backed securities, the security matures or is fully written down.

	Three Months Ended September 30,
	2015			2014
	(Dollars in Thousands)
Beginning balance		$248			$302
Initial credit impairment		-			-
Subsequent credit impairment		-			-
Reductions for amounts recognized in earnings due to intent or requirement to sell		-			-
Reductions for securities sold		-			-
Reduction for actual realized losses		(14	)		(10	)
Reduction for increase in cash flows expected to be collected		-			-
Ending Balance		$234			$292

During the three months ended September 30, 2015, the Company recorded no credit impairment charge and no non-credit unrealized holding loss to accumulated other comprehensive income. During the three months ended September 30, 2015, the Company accreted back into other comprehensive income $36 thousand (net of income tax effect of $18 thousand), based on principal repayments on private-label CMOs previously identified with OTTI.

In the case of its private-label residential CMOs that exhibit adverse risk characteristics, the Company employs models to determine the cash flows that it is likely to collect from the securities. These models consider borrower characteristics and the particular attributes of the loans underlying the securities, in conjunction with assumptions about future changes in home prices and interest rates, to predict the likelihood a loan will default and the impact on default frequency, loss severity and remaining credit enhancement. A significant input to these models is the forecast of future housing price changes for the relevant states and metropolitan statistical areas, which are based upon an assessment of the various housing markets. In general, since the ultimate receipt of contractual payments on these securities will depend upon the credit and prepayment performance of the underlying loans and, if needed, the credit enhancements for the senior securities owned by the Company, the Company uses these models to assess whether the credit enhancement associated with each security is sufficient to protect against likely losses of principal and interest on the underlying mortgage loans. The development of the modeling assumptions requires significant judgment.

22

In conjunction with our adoption of ASC Topic 820 effective June 30, 2009, the Company retained an independent third party to assist it with assessing its investments within the private-label CMO portfolio. The independent third party utilized certain assumptions for producing the cash flow analyses used in the OTTI assessment. Key assumptions would include interest rates, expected market participant spreads and discount rates, housing prices, projected future delinquency levels and assumed loss rates on any liquidated collateral.

The Company reviewed the independent third party’s assumptions used in the September 30, 2015 OTTI process. Based on the results of this review, the Company deemed the independent third party’s assumptions to be reasonable and adopted them. However, different assumptions could produce materially different results, which could impact the Company’s conclusions as to whether an impairment is considered other-than-temporary and the magnitude of the credit loss. Management believes that no additional private-label CMOs in the portfolio had an other-than-temporary impairment at September 30, 2015, keeping the total at three private-label CMOs with OTTI at September 30, 2015.

If the Company intends to sell an impaired debt security, or more likely than not will be required to sell the security before recovery of its amortized cost basis, the impairment is other-than-temporary and is recognized currently in earnings in an amount equal to the entire difference between fair value and amortized cost. The Company does not anticipate selling its private-label CMO portfolio, nor does Management believe that the Company will be required to sell these securities before recovery of this amortized cost basis.

In instances in which the Company determines that a credit loss exists but the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before the anticipated recovery of its remaining amortized cost basis, the OTTI is separated into (1) the amount of the total impairment related to the credit loss and (2) the amount of the total impairment related to all other factors (i.e., the noncredit portion). The amount of the total OTTI related to the credit loss is recognized in earnings and the amount of the total OTTI related to all other factors is recognized in accumulated other comprehensive loss. The total OTTI is presented in the Consolidated Statement of Income with an offset for the amount of the total OTTI that is recognized in accumulated other comprehensive loss. Absent the intent or requirement to sell a security, if a credit loss does not exist, any impairment is considered to be temporary.

Regardless of whether an OTTI is recognized in its entirety in earnings or if the credit portion is recognized in earnings and the noncredit portion is recognized in other comprehensive income (loss), the estimation of fair values has a significant impact on the amount(s) of any impairment that is recorded.

The noncredit portion of any OTTI losses on securities classified as available-for-sale is adjusted to fair value with an offsetting adjustment to the carrying value of the security. The fair value adjustment could increase or decrease the carrying value of the security. All of the Company’s private-label CMOs were originally, and continue to be classified, as held to maturity.

In periods subsequent to the recognition of an OTTI loss, the other-than-temporarily impaired debt security is accounted for as if it had been purchased on the measurement date of the OTTI at an amount equal to the previous amortized cost basis less the credit-related OTTI recognized in earnings. For debt securities for which credit-related OTTI is recognized in earnings, the difference between the new cost basis and the cash flows expected to be collected is accreted into interest income over the remaining life of the security in a prospective manner based on the amount and timing of future estimated cash flows.

The Company had investments in 48 positions that were temporarily impaired at September 30, 2015. Based on its analysis, management has concluded that three private-label CMOs are other-than-temporarily impaired, while the remaining securities portfolio has experienced unrealized losses and a decrease in fair value due to interest rate volatility, illiquidity in the marketplace, or credit deterioration in the U.S. mortgage markets.

23

9. LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES

The following table summarizes the primary segments of the loan portfolio as of September 30, 2015 and June 30, 2015.

		September 30, 2015									June 30, 2015
		Total       Loans				Individually evaluated for impairment			Collectively evaluated for impairment			Total Loans				Individually evaluated for impairment			Collectively evaluated for impairment
			(Dollars in Thousands)
First mortgage loans:
1 – 4 family dwellings	$		33,733		$		-	$		33,733	$		28,620		$		-	$		28,620
Construction			4,935				-			4,935			3,032				-			3,032
Land acquisition & development			763				-			763			653				-			653
Multi-family dwellings			5,992				-			5,992			6,084				-			6,084
Commercial			3,110				-			3,110			3,395				49			3,346
Consumer Loans
Home equity			811				-			811			1,175				-			1,175
Home equity lines of credit			1,967				-			1,967			1,917				-			1,917
Other			170				-			170			211				-			211
Commercial Loans			1,206				-			1,206			1,251				-			1,251
Obligations (other than securities and leases) of states and political subdivisons			-				-			-			-				-			-
	$		52,687		$		-	$		52,687	$		46,338		$		49	$		46,289
Plus: Deferred loan costs			179										129
Allowance for loan losses			(323	)									(304	)
Total	$		52,543								$		46,163

Impaired loans are loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement. The following loan categories are collectively evaluated for impairment. First mortgage loans: 1 – 4 family dwellings and all consumer loan categories (home equity, home equity lines of credit, and other). The following loan categories are individually evaluated for impairment. First mortgage loans: construction, land acquisition and development, multi-family dwellings, and commercial. The Company evaluates commercial loans not secured by real property individually for impairment.

The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap. The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial or commercial real estate loan. Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of impaired loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans. When foreclosure is probable, impairment is measured based on the fair value of the collateral.

Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired. Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower, including the length of the delay, the borrower’s prior payment record, and the amount of shortfall in relation to the principal and interest owed.

24

The following tables are a summary of the loans considered to be impaired as of September 30, 2015 and June 30, 2015, and the related interest income recognized for the three months ended September 30, 2015 and September 30, 2014:

		September 30,         2015			June 30,         2015
		(Dollars in Thousands)
Impaired loans with an allocated allowance:
Home equity lines of credit	$		-	$		-
Impaired loans without an allocated allowance:
Commercial real estate loans			-			49
Total impaired loans	$		-	$		49
Allocated allowance on impaired loans:
Home equity lines of credit	$		-	$		-
Total	$		-	$		-

		Three Months Ended
		September 30,     2015			September 30,     2014
		(Dollars in Thousands)
Average impaired loans
Construction loans	$		-	$		-
Land acquisition & development loans			-			-
Commercial real estate loans			48			49
Home equity lines of credit			-			150
Total	$		48	$		199
Income recognized on impaired loans
Construction loans	$		-	$		-
Land acquisition & development loans			-			-
Commercial real estate loans			1			-
Home equity lines of credit			-			1
Total	$		1	$		1

Total nonaccrual loans as of September 30, 2015 and June 30, 2015 and the related interest income recognized for the three months ended September 30, 2015 and September 30, 2014 are as follows:

		September 30,         2015			June 30,         2015
		(Dollars in Thousands)
Principal outstanding
1 – 4 family dwellings	$		259	$		260
Construction			-			-
Land acquisition & development			-			-
Commercial real estate			-			49
Home equity lines of credit			-			-
Total	$		259	$		309

25

		Three Months Ended
		September 30,         2015			September 30,         2014
		(Dollars in Thousands)
Average nonaccrual loans
1 – 4 family dwellings	$		260	$		366
Construction			-			-
Land acquisition & development			-			-
Commercial real estate			48			49
Home equity lines of credit			-			150
Total	$		308	$		565
Income that would have been recognized	$		5	$		8
Interest income recognized	$		6	$		9
Interest income foregone	$		-	$		3

The Company’s loan portfolio also includes troubled debt restructurings (TDRs), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties. These concessions typically result from the Company’s loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions. Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower’s sustained repayment performance for a reasonable period, generally six months.

During the three months ended September 30, 2015, there were no trouble debt restructurings, and no trouble debt restructurings that subsequently defaulted. One previously modified TDR, secured by commercial real estate, was paid off in full during the three months ended September 30, 2015.

The following table includes the recorded investment and number of modifications for modified loans, as of September 30, 2014. The Company reports the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured.

	For the Three Months Ended
	September 30, 2014
	Number of     Contracts			Pre-Modification     Outstanding Recorded Investment			Post-Modification     Outstanding Recorded Investment
	(Dollars in Thousands)
Troubled debt restructurings:
Commercial real estate		1	$		49	$		49
Troubled debt restructurings that subsequently defaulted:		-	$		-	$		-

26

When the Company modifies a loan, management evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral. In these cases, management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows. If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized by segment or class of loan, as applicable, through an allowance estimate or a charge-off to the allowance. Segment and class status is determined by the loan’s classification at origination.

The allowance for loan losses is established through provisions for loan losses charged against income. Loans deemed to be uncollectible are charged against the allowance account. Subsequent recoveries, if any, are credited to the allowance. The allowance is maintained at a level believed adequate by management to absorb estimated potential loan losses. Management’s determination of the adequacy of the allowance is based on periodic evaluations of the loan portfolio considering past experience, current economic conditions, composition of the loan portfolio and other relevant factors. This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change.

Effective December 13, 2006, the FDIC, in conjunction with the other federal banking agencies adopted a Revised Interagency Policy Statement on the Allowance for Loan and Lease Losses (“ALLL”). The revised policy statement revised and replaced the banking agencies’ 1993 policy statement on the ALLL. The revised policy statement provides that an institution must maintain an ALLL at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio. The banking agencies also revised the policy to ensure consistency with generally accepted accounting principles (“GAAP”). The revised policy statement updates the previous guidance that describes the responsibilities of the board of directors, management, and bank examiners regarding the ALLL, factors to be considered in the estimation of the ALLL, and the objectives and elements of an effective loan review system.

Federal regulations require that each insured savings institution classify its assets on a regular basis. In addition, in connection with examinations of insured institutions, federal examiners have authority to identify problem assets and, if appropriate, classify them. There are three classifications for problem assets: “substandard”, “doubtful” and “loss”. Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected. Doubtful assets have the weaknesses of those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss. An asset classified as loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted. Another category designated “asset watch” is also utilized by the Bank for assets which do not currently expose an insured institution to a sufficient degree of risk to warrant classification as substandard, doubtful or loss. Assets classified as substandard or doubtful require the institution to establish general allowances for loan losses. If an asset or portion thereof is classified as loss, the insured institution must either establish specific allowances for loan losses in the amount of 100% of the portion of the asset classified loss, or charge-off such amount. General loss allowances established to cover possible losses related to assets classified substandard or doubtful may be included in determining an institution’s regulatory capital, while specific valuation allowances for loan losses do not qualify as regulatory capital.

The Company’s general policy is to internally classify its assets on a regular basis and establish prudent general valuation allowances that are adequate to absorb losses that have not been identified but that are inherent in the loan portfolio. The Company maintains general valuation allowances that it believes are adequate to absorb losses in its loan portfolio that are not clearly attributable to specific loans. The Company’s general valuation allowances are within the following general ranges: (1) 0% to 5% of assets subject to special mention; (2) 1.00% to 100% of assets classified substandard; and (3) 50% to 100% of assets classified doubtful. Any loan classified as loss is charged-off. To further monitor and assess the risk characteristics of the loan portfolio, loan delinquencies are reviewed to consider any developing problem loans. Based upon the procedures in place, considering the Company’s past charge-offs and recoveries and assessing the current risk elements in the portfolio, management believes the allowance for loan losses at September 30, 2015, is adequate.

27

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of September 30, 2015 and June 30, 2015:

		Current			30 – 59   Days Past   Due			60 – 89   Days Past   Due			90 Days +   Past Due Accruing			90 Days +   Past Due Non-accrual			Total   Past   Due			Total Loans
		(Dollars in Thousands)
September 30, 2015
First mortgage loans:
1 – 4 family dwellings	$		33,406	$		68	$		-	$		-	$		259	$		327	$		33,733
Construction			4,935			-			-			-			-			-			4,935
Land acquisition & development			763			-			-			-			-			-			763
Multi-family dwellings			5,992			-			-			-			-			-			5,992
Commercial			3,110			-			-			-			-			-			3,110
Consumer Loans:
Home equity			811			-			-			-			-			-			811
Home equity lines of credit			1,967			-			-			-			-			-			1,967
Other			170			-			-			-			-			-			170
Commercial Loans			1,206			-			-			-			-			-			1,206
Obligations (other than securities and leases) of states and political subdivisions			-			-			-			-			-			-			-
	$		52,360	$		68	$		-	$		-	$		259	$		327			52,687
Plus: Deferred loan fees																					179
Allowance for loan losses																					(323	)
Net Loans Receivable																			$		52,543
		Current			30 – 59   Days Past   Due			60 – 89   Days Past   Due			90 Days +   Past Due Accruing			90 Days +   Past Due Non-accrual			Total   Past   Due			Total Loans
		(Dollars in Thousands)
June 30, 2015
First mortgage loans:
1 – 4 family dwellings	$		28,327	$		-	$		33	$		-	$		260	$		293	$		28,620
Construction			3,032			-			-			-			-			-			3,032
Land acquisition & development			653			-			-			-			-			-			653
Multi-family dwellings			6,084			-			-			-			-			-			6,084
Commercial			3,335			11			-			-			49			60			3,395
Consumer Loans
Home equity			1,175			-			-			-			-			-			1,175
Home equity lines of credit			1,917			-			-			-			-			-			1,917
Other			211			-			-			-			-			-			211
Commercial Loans			1,251			-			-			-			-			-			1,251
Obligations (other than securities and leases) of states and political subdivisions			-			-			-			-			-			-			-
	$		45,985	$		11	$		33	$		-	$		309	$		353			46,338
Plus: Deferred loan fees																					129
Allowance for loan losses																					(304	)
Net Loans Receivable																			$		46,163

28

Credit quality information

The following tables represent credit exposure by internally assigned grades for the period ended September 30, 2015. The grading system analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or not at all. The Company’s internal credit risk grading system is based on experiences with similarly graded loans.

The Company’s internally assigned grades are as follows:

Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

Substandard – loans that have a well-defined weakness based on objective evidence and can be characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard loan. In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

Loss – loans classified as loss are considered uncollectible, or of such value that continuance as a loan is not warranted.

The primary credit quality indicator used by management in the 1 – 4 family and consumer loan portfolios is the performance status of the loans. Payment activity is reviewed by Management on a monthly basis to determine how loans are performing. Loans are considered to be non-performing when they become 90 days delinquent, have a history of delinquency, or have other inherent characteristics which Management deems to be weaknesses.

The following tables presents the Company’s internally classified construction, land acquisition and development, multi-family residential, commercial real estate and commercial (not secured by real estate) loans at September 30, 2015 and June 30, 2015.

		September 30, 2015
		Construction			Land Acquisition &   Development   Loans			Multi-family   Residential			Commercial   Real Estate			Commercial			Obligations (other than securities and leases) of States and Political   Subdivisions
		(Dollars in Thousands)
Pass	$		4,935	$		559	$		5,992	$		3,110	$		1,206	$		-
Special Mention			-			-			-			-			-			-
Substandard			-			204			-			-			-			-
Doubtful			-			-			-			-			-			-
Ending Balance	$		4,935	$		763	$		5,992	$		3,110	$		1,206	$		-

29

		June 30, 2015
		Construction			Land Acquisition &   Development   Loans			Multi-family   Residential			Commercial   Real Estate			Commercial			Obligations (other than securities and leases) of States and Political   Subdivisions
		(Dollars in Thousands)
Pass	$		3,032	$		445	$		6,084	$		3,346	$		1,251	$		-
Special Mention			-			-			-			-			-			-
Substandard			-			208			-			49			-			-
Doubtful			-			-			-			-			-			-
Ending Balance	$		3,032	$		653	$		6,084	$		3,395	$		1,251	$		-

The following table presents performing and non-performing 1 – 4 family residential and consumer loans based on payment activity for the periods ended September 30, 2015 and June 30, 2015.

		September 30, 2015
		1 – 4 Family			Consumer
		(Dollars in Thousands)
Performing	$		33,474	$		2,948
Non-performing			259			-
Total	$		33,733	$		2,948

		June 30, 2015
		1 – 4 Family			Consumer
		(Dollars in Thousands)
Performing	$		28,360	$		3,303
Non-performing			260			-
Total	$		28,620	$		3,303

The Company determines its allowance for loan losses in accordance with generally accepted accounting principles. The Company uses a systematic methodology as required by Financial Reporting Release No. 28 and the various Federal Financial Institutions Examination Council guidelines. The Company also endeavors to adhere to SEC Staff Accounting Bulletin No. 102 in connection with loan loss allowance methodology and documentation issues.

Our methodology used to determine the allocated portion of the allowance is as follows. For groups of homogenous loans, we apply a loss rate to the groups’ aggregate balance. Our group loss rate reflects our historical loss experience. We may adjust these group rates to compensate for changes in environmental factors; but our adjustments have not been frequent due to a relatively stable charge-off experience. The Company also monitors industry loss experience on similar loan portfolio segments. We then identify loans for individual evaluation under ASC Topic 310. If the individually identified loans are performing, we apply a segment specific loss rate adjusted for relevant environmental factors, if necessary, for those loans reviewed individually and considered individually impaired, we use one of the three methods for measuring impairment mandated by ASC Topic 310. Generally the fair value of collateral is used since our impaired loans are generally real estate based. In connection with the fair value of collateral measurement, the Company generally uses an independent appraisal and determines costs to sell. The Company’s appraisals for

30

commercial income based loans, such as multi-family and commercial real estate loans, assess value based upon the operating cash flows of the business as opposed to merely “as built” values. The Company then validates the reasonableness of our calculated allowances by: (1) reviewing trends in loan volume, delinquencies, restructurings and concentrations; (2) reviewing prior period (historical) charge-offs and recoveries; and (3) presenting the results of this process, quarterly, to the Asset Classification Committee and the Savings Bank’s Board of Directors. We then tabulate, format and summarize the current loan loss allowance balance for financial and regulatory reporting purposes.

The Company had no unallocated loss allowance balance at September 30, 2015.

The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio. The allowance method is used in providing for loan losses. Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses charged to operations. The provision for loan losses is based on management’s periodic evaluation of individual loans, economic factors, past loan loss experience, changes in the composition and volume of the portfolio, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to changes in the near term.

The following tables summarize the primary segments of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2015 and 2014. Activity in the allowance is presented for the three months ended September 30, 2015 and 2014.

		As of September 30, 2015
		First Mortgage Loans
		1 – 4     Family			Construction			Land   Acquisition &   Development			Multi-     family			Commercial				Consumer   Loans				Commercial   Loans			Total
		(Dollars in Thousands)
Beginning ALLL Balance at June 30, 2015	$		125	$		63	$		9	$		30	$		34		$		37		$		6	$		304
Charge-offs			-			-			-			-			-				-				-			-
Recoveries			-			-			-			-			-				-				-			-
Provisions			18			9			-			-			(3	)			(5	)			-			19
Ending ALLL Balance at September 30, 2015	$		143	$		72	$		9	$		30	$		31		$		32		$		6	$		323
Individually evaluated for impairment	$		-	$		-	$		-	$		-	$		-		$		-		$		-	$		-
Collectively evaluated for impairment			143			72			9			30			31				32				6			323
	$		143	$		72	$		9	$		30	$		31		$		32		$		6	$		323

31

		As of September 30, 2014
		First Mortgage Loans
		1 – 4     Family				Construction			Land   Acquisition &   Development			Multi-     family				Commercial				Consumer   Loans			Commercial   Loans			Total
		(Dollars in Thousands)
Beginning ALLL Balance at June 30, 2014	$		103		$		14	$		5	$		12		$		45		$		47	$		8	$		234
Charge-offs			-				-			-			-				-				-			-			-
Recoveries			-				-			-			-				-				-			-			-
Provisions			(28	)			7			5			(1	)			(2	)			22			-			-
Ending ALLL Balance at September 30, 2014	$		75		$		21	$		10	$		11		$		43		$		69	$		8	$		3
Individually evaluated for impairment	$		-		$		-	$		-	$		-		$		-		$		37	$		-	$		37
Collectively evaluated for impairment			75				21			10			11				43				32			8			200
	$		75		$		21	$		10	$		11		$		43		$		69	$		8	$		237

During the three months ended September 30, 2015, the ALLL associated with the 1 – 4 family and construction loan portfolios increased by $18 thousand and $9 thousand, respectively. The primary reason for the increases in the ALLL associated with these segments were the increases in associated loan balances. The ALLL for consumer loans and commercial real estate loans decreased $5 thousand and $3 thousand, respectively. The decrease in the ALLL associated with consumer loans was primarily due to lower loan balances within this segment, while the decrease in the ALLL associated with commercial real estate loans was primarily due to the payoff of one non-performing loan in this segment. The decrease in the ALLL associated with the commercial (non-real estate) loan segment was primarily related to the lower loan balances within this segment.

During the fiscal year ended June 30, 2015, the Company also increased its ALLL reserve factors, due to increases in associated loan balances and qualitative factors throughout fiscal 2015, for the following loan segments:

Loan Segment	09/30/2015 Factor	09/30/2014 Factor
1 – 4 family	0.35%	0.25%
Construction:
1 – 4 family	0.75%	0.25%
5+ family	1.00%	0.50%

During the three months ended September 30, 2014, the ALLL associated with 1-4 family permanent loans decreased $28 thousand, while the ALLL associated with consumer loans increased $22 thousand. The decrease in the ALLL associated with the 1-4 family permanent loan segment was primarily due to the payoff of one non-performing loan within this segment. The increase in the ALLL associated with the consumer loan segment was primarily due to an increase in the ALLL associated with one non-performing home equity line of credit within this segment.

32

10. FEDERAL HOME LOAN BANK (FHLB) ADVANCES

The following table presents contractual maturities of FHLB long-term advances as of September 30, 2015 and June 30, 2015

	Maturity range		Weighted- average			Stated interest rate range							September 30,			June 30,
Description	from	to	interest rate 5			from			to				2015			2015
													(Dollars in Thousands)
Convertible	06/22/16	07/27/17		4.44	%		4.26	%		5.16	%	$		12,500	$		12,500
Adjustable	05/06/16	09/01/17		0.32	%		0.30	%		0.39	%			105,305			105,305
Total												$		117,805	$		117,805

Maturities of FHLB long-term advances at September 30, 2015, are summarized as follows:

Maturing During Fiscal Year Ended                     June 30:		Amount	Weighted- Average Interest         Rate
		(Dollars in Thousands)
2016	$	101,696		0.43	%
2017		-		-
2018		16,109		2.78
2019		-		-
2020 and thereafter		-		-
Total	$	117,805		0.76	%

The terms of the convertible advances reset to the three-month London Interbank Offered Rate (“LIBOR”) and have various spreads and call dates of three months. The FHLB has the right to convert from a fixed rate to a predetermined floating rate on its conversion date or quarterly thereafter. Should the advance be converted, the Company has the right to pay off the advance without penalty. The adjustable rate advances adjust either monthly or quarterly, based on the one-month or three-month LIBOR index, and have various spreads to the LIBOR index. The spreads to the applicable LIBOR index range from 0.05% to 0.16%. The adjustable rate advances are not convertible or callable. The FHLB advances are secured by the Company’s FHLB stock, mortgage-backed and investment securities, and loans, and are subject to substantial prepayment penalties.

⁵  As of September 30, 2015.

33

The Company also utilized revolving and short-term FHLB advances. Short-term FHLB advances generally mature within 90 days, while revolving FHLB advances may be repaid by the Company without penalty. The following table presents information regarding such advances as of September 30, 2015 and June 30, 2015:

		September 30,         2015				June 30,         2015
		(Dollars in Thousands)
FHLB revolving and short-term advances:
Ending balance	$		38,392		$		37,830
Average balance			31,675				23,496
Maximum month-end balance			38,392				37,830
Average interest rate			0.35	%			0.31	%
Weighted-average rate			0.35	%			0.32	%

At September 30, 2015, the Company had remaining borrowing capacity with the FHLB of approximately $22.6 million.

The FHLB advances are secured by the Company’s FHLB stock, loans, and mortgage-backed and investment securities held in safekeeping at the FHLB. FHLB advances are subject to substantial prepayment penalties.

11. OTHER BORROWINGS

Other borrowings include securities sold under agreements to repurchase with securities brokers (“repurchase agreements”). These borrowings generally mature within 1 to 90 days from the transaction date and require a collateral pledge. Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.

The following table presents information regarding other borrowings as of September 30, 2015 and June 30, 2015:

		September 30,         2015				June 30,         2015
		(Dollars in Thousands)
Other short-term borrowings:
Ending balance	$		7,950		$		-
Average balance			6,317				1,378
Maximum month-end balance			9,700				9,464
Average interest rate			0.38	%			0.36	%
Weighted-average rate			0.41	%			-	%

The remaining contractual maturity of repurchase agreements in the consolidated balance sheet as of September 30, 2015 is presented in the following table.

		Remaining Contractual Maturity of the  Repurchase Agreements
		Overnight and Continuous			Up to 30 Days			30 – 90 Days			Greater than 90 Days			Total
September 30, 2015
Repurchase agreements:	$		-	$		7,950	$		-	$		-	$		7,950
Total borrowings	$		-	$		7,950	$		-	$		-	$		7,950
Gross amount of recognized liabilities for repurchase agreements													$		7,950
Amounts related to agreements not included in offsetting disclosures above													$		-

34

12. FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date. GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level I:	Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
Level II:	Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.
Level III:	Assets and liabilities that have little to no pricing observability as of the reported date. These items do not have two-way markets and are measured using management’s best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Assets Measured at Fair Value on a Recurring Basis

Investment Securities Available-for-Sale

Fair values for securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. The Company has no Level I or Level III investment securities. Level II investment securities were primarily comprised of investment-grade corporate bonds and U.S. dollar-denominated investment-grade corporate bonds of large foreign issuers.

The following tables present the assets reported on a recurring basis on the Consolidated Balance Sheet at their fair value as of September 30, 2015 and June 30, 2015, by level within the fair value hierarchy. As required by GAAP, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

		September 30, 2015
		Level I			Level II			Level III			Total
		(Dollars in Thousands)
Assets measured on a recurring basis:
Investment securities – available for sale:
Obligations of states and political subdivisions	$		-	$		702	$		-	$		702
Corporate securities			-			83,750			-			83,750
Foreign debt securities 6			-			4,747			-			4,747
	$		-	$		89,199	$		-	$		89,199

⁶  U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.

35

		June 30, 2015
		Level I			Level II			Level III			Total
		(Dollars in Thousands)
Assets measured on a recurring basis:
Investment securities – available for sale:
Obligations of states and political subdivisions	$		-	$		697	$		-	$		697
Corporate securities			-			60,938			-			60,938
Foreign debt securities 7			-			5,281			-			5,281
	$		-	$		66,916	$		-	$		66,916

Assets Measured at Fair Value on a Nonrecurring Basis

The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period.

Impaired Loans

Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310. The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. For a majority of impaired real estate related loans, the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information. The Company has no Level I, Level II or Level III impaired loans at September 30, 2015. At June 30, 2015, Level III impaired loans were primarily comprised of one commercial real estate loan.

The following tables present the assets reported on a non-recurring basis on the consolidated balance sheet at their fair values as of September 30, 2015 and June 30, 2015, by level within the fair value hierarchy. As required by GAAP, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

September 30, 2015

Level I

Level II

Level III

Total

(Dollars in Thousands)

Assets measured on a non-recurring basis:

Impaired loans

$

-

$

-

$

-

$

-

Total

$

-

$

-

$

-

$

-

⁷ U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.

36

		June 30, 2015
		Level I			Level II			Level III			Total
		(Dollars in Thousands)
Assets measured on a non-recurring basis:
Impaired loans	$		-	$		-	$		49	$		49
Total	$		-	$		-	$		49	$		49

For Level III assets measured at fair value on a recurring and non-recurring basis as of September 30, 2015 and June 30, 2015, the significant observable inputs used in the fair value measurements were as follows:

		Fair Value at
		September 30,         2015		June 30,     2015		Valuation       Technique	Significant     Unobservable     Inputs	Significant Unobservable       Input Range (Weighted Average)
		(Dollars in Thousands)
Impaired loans	$		-	$	49	Appraisal of collateral8	Discounted appraisal9	0%/0%

When evaluating the value of the collateral on impaired loans, the Company will consider the age of the most current appraisal, and may discount the appraised value from 1.0% to 15.0%.

The Company classifies financial instruments in Level III of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to these unobservable inputs, the valuation model for Level III financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly.

⁸  Fair value is generally determined through independent appraisals of the underlying collateral, which generally include various level III inputs which are not identifiable.

⁹  Appraisals may be adjusted by management for qualitative factors such as economic conditions. The range and weighted average of appraisal adjustments are presented as a percentage of the appraisals.

37

13. FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts and estimated fair values are as follows:

		September 30, 2015
		Carrying Amount			Fair Value			Level I		Level II		Level III
		(Dollars in Thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$		1,969	$		1,969	$		1,969	$	-	$	-
Certificates of deposit			350			350			350		-		-
Investment securities – available for sale			89,199			89,199			-		89,199		-
Investment securities – held to maturity			25,123			25,592			-		25,592		-
Mortgage-backed securities – held to maturity:
Agency			149,553			150,066			-		150,066		-
Private-label			1,875			2,215			-		-		2,215
Net loans receivable			52,543			53,616			-		-		53,616
Accrued interest receivable			1,387			1,387			1,387		-		-
FHLB stock			6,482			6,482			6,482		-		-
Bank owned life insurance			4,310			4,310			4,310		-		-
FINANCIAL LIABILITIES
Deposits:
Non-interest bearing deposits	$		16,512	$		16,512	$		16,512	$	-	$	-
NOW accounts			20,205			20,205			20,205		-		-
Savings accounts			44,686			44,686			44,686		-		-
Money market accounts			24,183			24,183			24,183		-		-
Certificates of deposit			30,059			30,030			-		-		30,030
Advance payments by borrowers for taxes and insurance			853			853			853		-		-
FHLB long-term advances – fixed rate			12,500			13,051			-		-		13,051
FHLB long-term advances – variable rate			105,305			105,305			105,305		-		-
FHLB short-term advances			38,392			38,392			38,392		-		-
Other short-term borrowings			7,950			7,950			7,950		-		-
Accrued interest payable			164			164			164		-		-

38

		June 30, 2015
		Carrying Amount			Fair Value			Level I			Level II			Level III
		(Dollars in Thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$		3,573	$		3,573	$		3,573	$		-	$		-
Certificates of deposit			350			350			350			-			-
Investment securities – available for sale			66,916			66,916			-			66,916			-
Investment securities – held to maturity			36,618			36,979			-			36,979			-
Mortgage-backed securities – held to maturity:
Agency			160,614			160,835			-			160,835			-
Private-label			2,025			2,430			-			-			2,430
Net loans receivable			46,163			46,897			-			-			46,897
Accrued interest receivable			1,198			1,198			1,198			-			-
FHLB stock			6,619			6,619			6,619			-			-
Bank owned life insurance			4,276			4,276			4,276			-			-
FINANCIAL LIABILITIES
Deposits:
Non-interest bearing deposits	$		17,806	$		17,806	$		17,806	$		-	$		-
NOW accounts			20,238			20,238			20,238			-			-
Savings accounts			45,092			45,092			45,092			-			-
Money market accounts			23,601			23,601			23,601			-			-
Certificates of deposit			31,326			31,267			-			-			31,267
Advance payments by borrowers for taxes and insurance			865			865			865			-			-
FHLB long-term advances – fixed rate			12,500			13,174			-			-			13,174
FHLB long-term advances – variable rate			105,305			105,305			105,305			-			-
FHLB short-term advances			37,830			37,830			37,830			-			-
Other short-term borrowings			-			-			-			-			-
Accrued interest payable			156			156			156			-			-

Financial instruments are defined as cash, evidence of an ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from or to a second entity on potentially favorable or unfavorable terms.

Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale. If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument.

If no readily available market exists, the fair value estimates for financial instruments should be based upon management’s judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors, as determined through various option pricing formulas or simulation modeling. As many of these assumptions result from judgments made by management based upon estimates, which are inherently uncertain, the resulting estimated values may not be indicative of the amount realizable in the sale of a particular financial instrument. In addition, changes in the assumptions on which the estimated values are based may have a significant impact on the resulting estimated values.

As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Company, are not considered financial instruments, but have value, this estimated fair value of financial instruments would not represent the full market value of the Company.

39

Estimated fair values have been determined by the Company using the best available data, as generally provided in internal Savings Bank regulatory, or third party valuation reports, using an estimation methodology suitable for each category of financial instruments. The estimation methodologies used are as follows:

Cash and Cash Equivalents, Certificates of Deposit, Accrued Interest Receivable and Payable, FHLB Short-term Advances, and Other Short-term Borrowings

The fair value approximates the current carrying value.

Investment Securities, Mortgage-Backed Securities, and FHLB Stock

The fair value of investment and mortgage-backed securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. For discussion of valuation of private-label CMOs, see Note 8 “Unrealized Losses on Securities”. Since the FHLB stock is not actively traded on a secondary market and held exclusively by member financial institutions, the estimated fair market value approximates the carrying amount.

Net Loans Receivable, Deposits, and Advance Payments by Borrowers for Taxes and Insurance

Fair value for consumer mortgage loans is estimated using market quotes or discounting contractual cash flows for prepayment estimates. Discount rates were obtained from secondary market sources, adjusted to reflect differences in servicing, credit, and other characteristics.

The estimated fair values for consumer, fixed-rate commercial, and multi-family real estate loans are estimated by discounting contractual cash flows for prepayment estimates. Discount rates are based upon rates generally charged for such loans with similar credit characteristics.

The estimated fair value for nonperforming loans is the appraised value of the underlying collateral adjusted for estimated credit risk.

Demand, savings, money market deposit accounts, and advance payments by borrowers for taxes and insurance are reported at book value. The fair value of certificates of deposit is based upon the discounted value of the contractual cash flows. The discount rate is estimated using average market rates for deposits with similar average terms.

Bank Owned Life Insurance (“BOLI”)

The fair value of BOLI approximates the cash surrender value of the policies at these dates.

FHLB Long-term Advances

The fair values of fixed-rate advances are estimated using discounted cash flows, based on current incremental borrowing rates for similar types of borrowing arrangements. The carrying amount on variable rate advances approximates their fair value.

Commitments to Extend Credit

These financial instruments are generally not subject to sale, and estimated fair values are not readily available. The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure.

40

ITEM 2.

MANAGEMENT’S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS FOR THE THREE MONTHS ENDED SEPTEMBER 30, 2015

FORWARD LOOKING STATEMENTS

In the normal course of business, we, in an effort to help keep our shareholders and the public informed about our operations, may from time to time issue or make certain statements, either in writing or orally, that are or contain forward-looking statements, as that term is defined in the U.S. federal securities laws. Generally, these statements relate to business plans or strategies, projected or anticipated benefits from acquisitions made by or to be made by us, projections involving anticipated revenues, earnings, profitability or other aspects of operating results or other future developments in our affairs or the industry in which we conduct business. Forward-looking statements may be identified by reference to a future period or periods or by the use of forward-looking terminology such as “anticipated,” “believe,” “expect,” “intend,” “plan,” “estimate” or similar expressions.

Although we believe that the anticipated results or other expectations reflected in our forward-looking statements are based on reasonable assumptions, we can give no assurance that those results or expectations will be attained. Forward-looking statements involve risks, uncertainties and assumptions (some of which are beyond our control), and as a result actual results may differ materially from those expressed in forward-looking statements. Factors that could cause actual results to differ from forward-looking statements include, but are not limited to, the following, as well as those discussed elsewhere herein:

• our investments in our businesses and in related technology could require additional incremental spending, and might not produce expected deposit and loan growth and anticipated contributions to our earnings;

• general economic or industry conditions could be less favorable than expected, resulting in a deterioration in credit quality, a change in the allowance for loan losses or a reduced demand for credit or fee-based products and services;

• changes in the interest rate environment could reduce net interest income and could increase credit losses;

• the conditions of the securities markets could change, which could adversely affect, among other things, the value or credit quality of our assets, the availability and terms of funding necessary to meet our liquidity needs and our ability to originate loans and leases;

• changes in the extensive laws, regulations and policies governing financial holding companies and their subsidiaries could alter our business environment or affect our operations;

• the potential need to adapt to industry changes in information technology systems, on which we are highly dependent, could present operational issues or require significant capital spending;

• competitive pressures could intensify and affect our profitability, including as a result of continued industry consolidation, the increased availability of financial services from non-banks, technological developments such as the internet or bank regulatory reform; and

• acts or threats of terrorism and actions taken by the United States or other governments as a result of such acts or threats, including possible military action, could further adversely affect business and economic conditions in the United States generally and in our principal markets, which could have an adverse effect on our financial performance and that of our borrowers and on the financial markets and the price of our common stock.

41

You should not put undue reliance on any forward-looking statements. Forward-looking statements speak only as of the date they are made, and we undertake no obligation to update them in light of new or future events except to the extent required by federal securities laws.

GENERAL

WVS Financial Corp. (the “Company”) is the parent holding company of West View Savings Bank (“West View” or the “Savings Bank”). The Company was organized in July 1993 as a Pennsylvania-chartered unitary bank holding company and acquired 100% of the common stock of the Savings Bank in November 1993.

West View Savings Bank is a Pennsylvania-chartered, FDIC-insured stock savings bank conducting business from six offices in the North Hills suburbs of Pittsburgh. The Savings Bank converted from the mutual to the stock form of ownership in November 1993. The Savings Bank had no subsidiaries at September 30, 2015.

The operating results of the Company depend primarily upon its net interest income, which is determined by the difference between income on interest-earning assets, principally loans, mortgage-backed securities and investment securities, and interest expense on interest-bearing liabilities, which consist primarily of deposits and borrowings. The Company’s net income is also affected by its provision for loan losses, as well as the level of its non-interest income, including loan fees and service charges, and its non-interest expenses, such as compensation and employee benefits, income taxes, deposit insurance and occupancy costs.

FINANCIAL CONDITION

The Company’s assets totaled $334.1 million at September 30, 2015, as compared to $329.7 million at June 30, 2015. The $4.4 million or 1.3% increase in total assets was primarily comprised of a $22.3 million increase in investment securities – available for sale, a $6.4 million increase in net loans receivable, a $189 thousand increase in accrued interest receivable, and a $34 thousand increase in bank owned life insurance, which were partially offset by a $11.5 million decrease in investment securities - held to maturity, a $11.2 million decrease in mortgage-backed securities – held to maturity, and a $1.6 million decrease in cash and cash equivalents. The increase in investment securities available for sale was primarily due to purchases of investment-grade corporate bonds totaling $23.8 million, which were partially offset by repayments on investment-grade fixed-rate corporate bonds totaling $2.1 million. The investment-grade fixed rate corporate bonds purchased were primarily used to offset maturities and repayments of U.S. Government agency multiple step-up and mortgage-backed securities (discussed below) and to bolster interest revenue and liquidity. The increase in net loans receivable was primarily attributable to increases in single-family real estate loans, and construction loans, totaling $5.1 million and $1.9 million, respectively, which were partially offset by decreases in home equity loans, commercial real estate loans, multi-family real estate loans, commercial loans, and other consumer loans, totaling $364 thousand, $285 thousand, $92 thousand, $45 thousand, and $41 thousand, respectively. The decrease in investment securities held to maturity was primarily due to early redemptions of U.S. Government agency multi-step up bonds totaling $20.6 million. The decrease in mortgage-backed securities held to maturity was primarily due to repayments on floating rate U.S. Government agency CMOs and floating rate private-label CMOs totaling $11.1 million and $204 thousand, respectively. See Quantitative and Qualitative Disclosures About Market Risk “Asset and Liability Management”.

The Company’s total liabilities increased $4.1 million or 1.4% to $301.8 million as of September 30, 2015 from $297.7 million as of June 30, 2015. The $4.1 million increase in total liabilities was primarily comprised of a $7.9 million or 100.0% increase in other short-term borrowings, and a $562 thousand or 1.5% increase in FHLB short-term advances, which were partially offset by a $2.4 million or 1.7% decrease in total deposits, and a $2.0 million or 67.2% decrease in other liabilities. The increases in other short-term borrowings and FHLB short-term advances were primarily a result of funding needs for the purchase of investment securities. The decrease in total deposits was primarily attributable to decrease in non-interest bearing accounts, time deposits, and savings accounts, totaling $1.3 million, $1.3 million, and $406 thousand,

42

respectively, which were partially offset by increases in money market accounts, totaling $582 thousand. The $2.0 million decrease in other liabilities was primarily due to a decrease in security purchase commitments. See also Quantitative and Qualitative Disclosures About Market Risk “Asset and Liability Management”.

Total stockholders’ equity increased $268 thousand or 0.8% to $32.3 million as of September 30, 2015, from $32.0 million as of June 30, 2015. The increase was primarily attributable to Company net income of $311 thousand, and other comprehensive income of $44 thousand, which were partially offset by $81 thousand of cash dividends paid on the Company’s common stock, and $19 thousand paid for the acquisition of Treasury stock. The other comprehensive income was primarily attributable to a $36 thousand (net of tax effect) reversal of unrealized holding losses on three private-label CMOs with previously identified OTTI, and $8 thousand (net of tax effect) of unrealized holding gains on the Company’s available for sale investment portfolio.

RESULTS OF OPERATIONS

General.    WVS reported net income of $311 thousand or $0.16 earnings per share (basic and diluted) for the three months ended September 30, 2015. Net income increased by $12 thousand or 4.0% and earnings per share (basic and diluted) increased $0.01 or 6.7% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase in net income for the three months ended September 30, 2015 was primarily attributable to a $94 thousand increase in net interest income, and a $2 thousand increase in non-interest income, which were partially offset by a $39 thousand increase in income tax expense, a $28 thousand increase in non-interest expense, and a $17 thousand increase in provisions for loan losses.

Net Interest Income.    The Company’s net interest income increased by $94 thousand or 7.6% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase in net interest income is attributable to a $117 thousand increase in interest income, which was partially offset by a $23 thousand increase in interest expense. The increase in interest income was primarily due to higher average balances of investments and loan portfolios, and a higher yield earned on FHLB stock, which were partially offset by lower average yields earned on the Company’s investment and loan portfolios, during the quarter ended September 30, 2015, when compared to the same period in 2014. The increase in interest expense was primarily attributable to higher rates paid on FHLB long-term variable rate and FHLB short-term advances, and higher average balances of, and higher rates paid on other short-term borrowings during the three months ended September 30, 2015, which were partially offset by lower average balances and lower rates paid on time deposits, when compared to the same period in 2014.

Interest Income.    Interest income on investment securities increased $212 thousand or 71.9% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily attributable to a $60.3 million increase in the average balance of investment securities outstanding, which was partially offset by a 37 basis point decrease in the weighted average yield on investment securities, when compared to the same period in 2014.

Interest income on net loans receivable increased $149 thousand or 39.9% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily attributable to a $19.2 million increase in the average balance of net loans receivable outstanding, which was partially offset by a decrease of 72 basis points in the weighted average yield earned on net loans receivable for the three months ended September 30, 2015, when compared to the same period in 2014. The increase in the average balance of loans outstanding was primarily attributable to loan originations in excess of repayments, while the decrease in the average yield earned on net loans receivable was primarily attributable to lower rates on new loans originated. During fiscal 2015 and into fiscal 2016, the Company enjoyed higher demand for single-family home purchase loans. Substantially off of our loan originations and purchases were fixed-rate with a mix of 15, 20, and 30 year terms.

Interest income on FHLB stock increased $38 thousand or 70.4% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase in dividends on FHLB stock for the three months ended September 30, 2015 was attributable to a 246 basis point increase in the yield

43

earned on FHLB stock, which was partially offset by a $136 thousand decrease in the average balance of FHLB stock held during the three months ended September 30, 2015, when compared to the same period in 2014.

Interest income on mortgage-backed securities decreased $282 thousand or 35.4% for the three months ended September 30, 2015, when compared to the same period in 2014. The decrease for the three months ended September 30, 2015 was primarily attributable to a $56.2 million decrease in the average balance of U.S. Government agency mortgage-backed securities outstanding, an 18 basis point decrease in the weighted average yield earned on U.S. Government agency mortgage-backed securities, and an 18 basis point decrease in the weighted average yield earned on private-label mortgage-backed securities, for the three months ended September 30, 2015, when compared to the same period in 2014. The decrease in the average balances of U.S. Government agency and private-label mortgage-backed securities during the three months ended September 30, 2015 was attributable to principal paydowns of U.S. Government agency and private-label mortgage-backed securities during the period.

Interest Expense.    Interest paid on FHLB long-term advances increased $13 thousand or 6.1% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily attributable to a $3.5 million increase in the average balance of FHLB long-term variable-rate advances, for the three months ended September 30, 2015, when compared to the same period in 2014.

Interest paid on FHLB short-term advances increased $11 thousand or 64.7% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily attributable to a $9.1 million increase in the average balance of FHLB short-term advances outstanding, and a 5 basis point increase in the weighted average rate paid on FHLB short-term advances, for the three months ended September 30, 2015, when compared to the same period in 2014.

Interest on other short-term borrowings increased $6 thousand, or 100.0% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily attributable to a $6.3 million increase in the average balance of other short-term borrowings outstanding for the three months ended September 30, 2015, when compared to the same period in 2014.

Interest expense on deposits decreased $7 thousand or 11.9% for the three months ended September 30, 2015, when compared to the same period in 2014. The decrease in interest expense on deposits for the three months ended September 30, 2015 was primarily attributable to a 6 basis point decrease in the weighted average rate paid on time deposits, and a 2 basis point decrease in the weighted average rate paid on money market accounts, and a $1.8 million decrease in the average balance of time deposits for the three months ended September 30, 2015, when compared to the same period in 2014.

Provision for Loan Losses.    A provision for loan losses is charged to earnings (while credit provision for loan losses are accretive to earnings) to maintain the total allowance at a level considered adequate by management to absorb potential losses in the portfolio. Management’s determination of the adequacy of the allowance is based on an evaluation of the portfolio considering past experience, current economic conditions, volume, growth and composition of the loan portfolio, and other relevant factors.

Provisions for loan losses increased $16 thousand for the three months ended September 30, 2015, when compared to the same period in 2014. The increase in the provisions for loan losses for the three months ended September 30, 2015, was primarily attributable to an increase in the Company’s loan portfolio and increases in qualitative factors for 1-4 family first mortgages, and 1-4 family and multi-family construction loans since September 30, 2014. At September 30, 2015, the Company’s total allowance for loan losses amounted to $323 thousand or 0.61% of the Company’s total loan portfolio, as compared to $304 thousand or 0.65% at June 30, 2015. At September 30, 2015, the Company’s non-performing loans totaled $259 thousand as compared to $309 thousand at June 30, 2015.

44

Non-Interest Income.    Non-interest income increased by $1 thousand or 0.7% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily attributable to a $2 thousand increase in service charges on deposits for the three months ended September 30, 2015, when compared to the same period in 2014.

Non-Interest Expense.    Non-interest expense increased $28 thousand or 3.1% for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was principally attributable to a $11 thousand increase in employee related expense, a $17 thousand increase in ATM network expense, a $10 thousand increase in provisions for off-balance sheet (loan origination) commitments, a $7 thousand increase in occupancy and equipment costs, and a $4 thousand increase in federal deposit insurance premiums, which were partially offset by an $11 thousand decrease in legal expense and $10 thousand decrease in charitable contributions eligible for PA tax credits, when compared to the same period in 2014.

Income Tax Expense.    Income tax expense increased $39 thousand for the three months ended September 30, 2015, when compared to the same period in 2014. The increase for the three months ended September 30, 2015 was primarily due to higher levels of taxable income, during the three months ended September 30, 2015, when compared to the same period in 2014, and lower levels of PA tax credits.

LIQUIDITY AND CAPITAL RESOURCES

Net cash used for operating activities totaled $1.3 million during the three months ended September 30, 2015. Net cash used for operating activities was primarily comprised of net income of a $2.0 million decrease in unsettled security purchases, a $189 thousand increase in accrued interest receivable, and $34 thousand of earnings on bank owned life insurance, which were partially offset by net income of $311 thousand, $487 thousand of amortization of investment premiums, a $35 thousand increase in accrued income taxes, and $25 thousand of depreciation expense.

Funds used for investing activities totaled $6.3 million during the three months ended September 30, 2015. Primary uses of funds during the three months ended September 30, 2015 included purchases of investment securities available for sale totaling $24.8 million, purchases of investment securities held to maturity totaling $9.4 million, and an increase in net loans receivable totaling $6.4 million. Primary sources of funds during the three months ended September 30, 2015 included proceeds from investments and mortgage-backed securities in the held-to-maturity portfolio totaling $20.9 million and $11.3 million, respectively, proceeds from investment securities in the available-for-sale portfolio totaling $2.1 million, and net redemptions of FHLB stock totaling $137 thousand. The mortgage-backed securities repayments were primarily used to offset purchases of securities in the investment portfolio.

Funds provided by financing activities totaled $6.0 million for the three months ended September 30, 2015. The primary sources included a $7.9 million increase in other short-term borrowings, and a $562 thousand increase in FHLB short-term advances, which were partially offset by a $1.3 million decrease in retail certificates of deposit, a $1.2 million decrease in transaction and savings deposits, and $81 thousand in cash dividends paid on the Company’s common stock. Management believes that a significant portion of our local maturing deposits will remain with the Company. Management has determined that it currently is maintaining adequate liquidity and continues to match funding sources with lending and investment opportunities.

The Company’s primary sources of funds are deposits, amortization, repayments and maturities of existing loans, mortgage-backed securities and investment securities, funds from operations, and funds obtained through FHLB advances and other borrowings. Certificates of deposit scheduled to mature in one year or less at September 30, 2015 totaled $22.5 million.

Historically, the Company used its sources of funds primarily to meet its ongoing commitments to pay maturing savings certificates and savings withdrawals, fund loan commitments and maintain a substantial portfolio of investment securities. At September 30, 2015, total approved loan commitments outstanding were $6.0 million. At the same date, commitments under unused lines of credit amounted to $6.5 million and

45

the unadvanced portion of construction loans approximated $4.7 million. The Company has been able to generate sufficient cash through the retail deposit market, its traditional funding source, and through FHLB advances, and other borrowings, to provide the cash utilized in investing activities. The Company’s available for sale segment of the investment portfolio totaled $89.2 million at September 30, 2015. Management believes that the Company currently has adequate liquidity available to respond to liquidity demands.

On October 27, 2015, the Company’s Board of Directors declared a quarterly cash dividend of $0.04 per share, and a special cash dividend of $0.04 per share, both payable on November 19, 2015, to shareholders of record at the close of business on November 9, 2015. Dividends are subject to determination and declaration by the Board of Directors, which take into account the Company’s financial condition, statutory and regulatory restrictions, general economic conditions and other factors. There can be no assurance that dividends will in fact be paid on the Common Stock in future periods or that, if paid, such dividends will not be reduced or eliminated.

As of September 30, 2015, WVS Financial Corp. exceeded all regulatory capital requirements and maintained Common Equity Tier I Capital, Tier I, and total risk-based capital equal to $32.7 million or 19.2%, $32.7 million or 19.2%, and $33.1 million or 19.5%, respectively, of total risk-weighted assets, and Tier I leverage capital of $32.7 million or 9.7% of average quarterly assets.

Nonperforming assets consist of nonaccrual loans and real estate owned. A loan is placed on nonaccrual status when, in the judgment of management, the probability of collection of interest is deemed insufficient to warrant further accrual. When a loan is placed on nonaccrual status, previously accrued but uncollected interest is deducted from interest income. The Company normally does not accrue interest on loans past due 90 days or more, however, interest may be accrued if management believes that it will collect on the loan.

The Company’s nonperforming assets at September 30, 2015 totaled $259 thousand or 0.08% of total assets as compared to $309 thousand or 0.09% of total assets at June 30, 2015. Nonperforming assets at September 30, 2015 consisted of one single-family real estate loan totaling $259 thousand. The loan is currently under a bankruptcy order and making payments as agreed.

The $50 thousand decrease in nonperforming assets during the three months ended September 30, 2015 was primarily attributable to the payoff in full of one non-accrual commercial real estate loan totaling $49 thousand, and principal repayments on one non-accrual single-family real estate loan totaling $2 thousand.

During the three months ended September 30, 2015, the Company collected $6 thousand of interest income on non-accrual loans. Approximately $5 thousand of interest income would have been recorded during the three months ended September 30, 2015, on non-accrual loans if such loans had been current according to the original loan agreements for the entire periods. These amounts were not included in the Company’s interest income for the three months ended September 30, 2015.

46

ITEM 3.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

ASSET AND LIABILITY MANAGEMENT

The Company’s primary market risk exposure is interest rate risk and, to a lesser extent, liquidity risk. All of the Company’s transactions are denominated in US dollars with no specific foreign exchange exposure. The Savings Bank has no agricultural loan assets and therefore would not have a specific exposure to changes in commodity prices. Any impacts that changes in foreign exchange rates and commodity prices would have on interest rates are assumed to be exogenous and will be analyzed on an ex post basis.

Interest rate risk (“IRR”) is the exposure of a banking organization’s financial condition to adverse movements in interest rates. Accepting this risk can be an important source of profitability and shareholder value, however excessive levels of IRR can pose a significant threat to the Company’s earnings and capital base. Accordingly, effective risk management that maintains IRR at prudent levels is essential to the Company’s safety and soundness.

Evaluating a financial institution’s exposure to changes in interest rates includes assessing both the adequacy of the management process used to control IRR and the organization’s quantitative level of exposure. When assessing the IRR management process, the Company seeks to ensure that appropriate policies, procedures, management information systems and internal controls are in place to maintain IRR at prudent levels with consistency and continuity. Evaluating the quantitative level of IRR exposure requires the Company to assess the existing and potential future effects of changes in interest rates on its consolidated financial condition, including capital adequacy, earnings, liquidity, and, where appropriate, asset quality.

On September 17 and October 28, 2015, the Federal Reserve Open Market Committee (FOMC) issued two press releases. Both press releases affirmed the FOMC’s view that the current 0 to  ¹⁄₄ percent target range for the federal funds rate remained appropriate. The FOMC also maintained its existing policy of reinvesting principal payments from its holdings of agency debt and agency mortgage-backed securities and rolling over maturing Treasury securities at auction. The FOMC further indicated it anticipates that, even after employment and inflation are near mandate consistent levels, economic conditions may, for some time, warrant keeping the target federal funds rate below levels the FOMC views as normal in the longer run.

Financial institutions derive their income primarily from the excess of interest collected over interest paid. The rates of interest an institution earns on its assets and owes on its liabilities generally are established contractually for a period of time. Since market interest rates change over time, an institution is exposed to lower profit margins (or losses) if it cannot adapt to interest-rate changes. For example, assume that an institution’s assets carry intermediate- or long-term fixed rates and that those assets were funded with short-term liabilities. If market interest rates rise by the time the short-term liabilities must be refinanced, the increase in the institution’s interest expense on its liabilities may not be sufficiently offset if assets continue to earn at the long-term fixed rates. Accordingly, an institution’s profits could decrease on existing assets because the institution will either have lower net interest income or, possibly, net interest expense. Similar risks exist when assets are subject to contractual interest-rate ceilings, or rate sensitive assets are funded by longer-term, fixed-rate liabilities in a decreasing-rate environment.

During the fiscal years 2013, 2014, 2015 and into fiscal year 2016, intermediate and long-term market interest rates fluctuated considerably. Many central banks, including the Federal Reserve, continued above normal levels of monetary accommodation including quantitative easing and targeted asset purchase programs. The desired outcomes of these programs are to stimulate aggregate demand, reduce high levels of unemployment and to further lower market interest rates.

47

The table below shows the targeted federal funds rate and the benchmark two and ten year treasury yields at quarter ends beginning in June 30, 2007, and extending through September 30, 2015. The difference in yields on the two year and ten year Treasury’s is often used to determine the steepness of the yield curve and to assess the term premium of market interest rates.

		Yield on:
	Targeted       Federal Funds	Two (2) Year       Treasury	Ten (10) Year       Treasury	Shape of Yield Curve
June 30, 2007	5.25%	4.87%	5.03%	Slightly Positive
September 30, 2007	4.75%	3.97%	4.59%	Moderately Positive
December 31, 2007	4.25%	3.05%	4.04%	Positive
March 31, 2008	2.25%	1.62%	3.45%	Positive
June 30, 2008	2.00%	2.63%	3.99%	Positive
September 30, 2008	2.00%	2.00%	3.85%	Positive
December 31, 2008	0.00% to 0.25%	0.76%	2.25%	Positive
March 31, 2009	0.00% to 0.25%	0.81%	2.71%	Positive
June 30, 2009	0.00% to 0.25%	1.11%	3.53%	Positive
September 30, 2009	0.00% to 0.25%	0.95%	3.31%	Positive
December 31, 2009	0.00% to 0.25%	1.14%	3.85%	Positive
March 31, 2010	0.00% to 0.25%	1.02%	3.84%	Positive
June 30, 2010	0.00% to 0.25%	0.61%	2.97%	Positive
September 30, 2010	0.00% to 0.25%	0.42%	2.53%	Positive
December 31, 2010	0.00% to 0.25%	0.61%	3.30%	Positive
March 31, 2011	0.00% to 0.25%	0.80%	3.47%	Positive
June 30, 2011	0.00% to 0.25%	0.45%	3.18%	Positive
September 30, 2011	0.00% to 0.25%	0.25%	1.92%	Positive
December 31, 2011	0.00% to 0.25%	0.25%	1.89%	Positive
March 31, 2012	0.00% to 0.25%	0.33%	2.23%	Positive
June 30, 2012	0.00% to 0.25%	0.33%	1.67%	Positive
September 30, 2012	0.00% to 0.25%	0.23%	1.65%	Positive
December 31, 2012	0.00% to 0.25%	0.24%	1.85%	Positive
March 31, 2013	0.00% to 0.25%	0.25%	1.87%	Positive
June 30, 2013	0.00% to 0.25%	0.36%	2.52%	Positive
September 30, 2013	0.00% to 0.25%	0.33%	2.64%	Positive
December 31, 2013	0.00% to 0.25%	0.30%	2.84%	Positive
March 31, 2014	0.00% to 0.25%	0.44%	2.73%	Positive
June 30, 2014	0.00% to 0.25%	0.47%	2.53%	Positive
September 30, 2014	0.00% to 0.25%	0.58%	2.52%	Positive
December 31, 2014	0.00% to 0.25%	0.53%	1.90%	Positive
March 31, 2015	0.00% to 0.25%	0.56%	1.99%	Positive
June 30, 2015	0.00% to 0.25%	0.64%	2.33%	Positive
September 30, 2015	0.00% to 0.25%	0.64%	2.06%	Positive

48

These changes in intermediate and long-term market interest rates, the changing slope of the Treasury yield curve, and higher levels of interest rate volatility have impacted prepayments on the Company’s loan, investment and mortgage-backed securities portfolios. Principal repayments on the Company’s loan, investment, and mortgage-backed securities portfolios for the three months ended September 30, 2015, totaled $3.6 million, $22.9 million, and $11.3 million, respectively. Despite stagnant global interest rates and Treasury yields the Company continued to grow its balance sheet and used proceeds from maturities and calls of bonds, repayments on its mortgage-backed securities, and borrowings to purchase investment and mortgage-backed securities and to fund loan growth.

During the three months ended September 30, 2015, the Company increased its portfolio of: single-family mortgages by approximately $5.1 million, and construction loans by $1.9 million, which were partially offset by a $364 thousand decrease in home equity loans, and a $285 thousand decrease in commercial real estate loans. The Company continued to more aggressively pursue 15, 20, 30 year fixed-rate single-family residential real estate loans. The Company also makes available for origination residential mortgage loans with interest rates which adjust pursuant to a designated index, although customer acceptance has been somewhat limited in the Savings Bank’s market area. We expect that the housing market will modestly grow throughout fiscal 2016. The Company will continue to selectively offer commercial real estate, land acquisition and development, and shorter-term construction loans (primarily on residential properties), and commercial loans on business assets to partially increase interest income while managing credit and interest rate risk. The Company also offers higher yielding multi-family loans to existing, and seasoned prospective, customers.

During the three months ended September 30, 2015, principal investment purchases were comprised of: $24.8 million of investment grade fixed-rate corporate bonds with a weighted average yield to maturity of 1.50%; $9.4 million of U.S. Government agency multiple step-up bonds with initial lock out periods from 1 – 7 months and a weighted average yield to first call of 1.35%, and a weighted average yield to maturity of 3.97%. Single step-up bonds have one “step” or increase in coupon. Multiple step-up bonds have more than one “step” or increase in coupon. All of the corporate bond purchases were classified as available for sale for accounting purposes, while the U.S. Government agency bonds were classified as held to maturity. The Company believes that the purchases will earn a return above the Company’s cost of funds.

Major investment proceeds received during the three months ended September 30, 2015 were: U.S. Government agency multi step-up bonds - $20.6 million with a weighted average yield of 1.52%; investment grade corporate bonds - $1.6 million with a weighted average yield of 1.66%; and U.S. dollar denominated investment grade corporate bonds of large foreign issuers - $500 thousand with a weighted average yield of 1.12%.

As of September 30, 2015, the implementation of these asset and liability management initiatives resulted in the following:

1) $153.4 million or 45.3% of the Company’s assets were comprised of floating rate investment and mortgage-backed securities. Of this $153.4 million, approximately $151.2 million float on a monthly basis based upon changes in the one-month London Interbank Offered Rate (LIBOR) and about $2.0 million reprice on a quarterly basis based upon the three-month LIBOR.

2) $151.4 million or 57.0% of the Company’s total investment portfolio was comprised of floating rate mortgage-backed securities (including collateralized mortgage obligations – “CMOs”) that reprice on a monthly basis;

3) $84.3 million or 31.7% of the Company’s investment portfolio consisted of investment grade fixed-rate corporate bonds with remaining maturities as follows: 3 months or less - $6.7 million or 7.9%; 3 – 12 months - $23.9 million or 28.4%; 1 – 2 years - $48.1 million or 57.0%; 2 – 3 years - $4.6 million or 5.4% and 3 – 5 years - $1.1 million or 1.3%;

4) $16.2 million or 6.1% of the Company’s investment portfolio was comprised of callable U.S. Government Agency multiple step-up bonds with call features. Approximately $14.6 million are callable within three months, and the remainder are callable within nine months. These bonds may or may not actually be redeemed prior to maturity (i.e. called) depending upon the level of market interest rates at their respective call dates;

49

5) $89.2 million or 26.7% of the Company’s assets were comprised of investment securities classified as available for sale;

6) An aggregate of $15.5 million or 29.5% of the Company’s net loan portfolio had adjustable interest rates or maturities of less than 12 months;

7) Approximately $100.3 million of the Company’s total FHLB long-term advances of $117.8 million are comprised of floating rate instruments which adjust on a monthly basis based upon changes in the one-month LIBOR;

8) Approximately $5.0 million of the Company’s total FHLB long-term advances of $117.8 million are comprised of floating rate instruments which adjust on a quarterly basis based upon changes in the three-month LIBOR; and

9) The maturity distribution of the Company’s borrowings is as follows: 3 months or less - $46.3 million or 28.2%; 3 – 12 months - $101.7 million or 62.0%; and over 1 year - $16.1 million or 9.8%.

The effect of interest rate changes on a financial institution’s assets and liabilities may be analyzed by examining the “interest rate sensitivity” of the assets and liabilities and by monitoring an institution’s interest rate sensitivity “gap”. An asset or liability is said to be interest rate sensitive within a specific time period if it will mature or reprice within a given time period. A gap is considered positive (negative) when the amount of rate sensitive assets (liabilities) exceeds the amount of rate sensitive liabilities (assets). During a period of falling interest rates, a negative gap would tend to result in an increase in net interest income. During a period of rising interest rates, a positive gap would tend to result in an increase in net interest income.

As part of its asset/liability management strategy, the Company maintained an asset sensitive financial position due to unusually low market interest rates. An asset sensitive financial position may benefit earnings during a period of rising interest rates and reduce earnings during a period of declining interest rates.

The following table sets forth certain information at the dates indicated relating to the Company’s interest-earning assets and interest-bearing liabilities which are estimated to mature or are scheduled to reprice within one year.

	September 30,     2015			June 30,
				2015			2014
				(Dollars in Thousands)
Interest-earning assets maturing or repricing within one year		$229,803			$227,461			$256,902
Interest-bearing liabilities maturing or repricing within one year		236,745			228,335			209,986
Interest sensitivity gap		$(6,942	)		$      (874	)		$  46,916
Interest sensitivity gap as a percentage of total assets		-2.08	%		-0.27	%		15.14	%
Ratio of assets to liabilities maturing or repricing within one year		97.07	%		99.62	%		122.34	%

50

During the three months ended September 30, 2015, the Company managed its one-year interest sensitivity gap by increasing by approximately $8.5 million the Company’s borrowings that mature or reprice within one year. At September 30, 2015, investments available for sale totaled $89.2 million or 26.7% of total assets.

The following table illustrates the Company’s estimated stressed cumulative repricing gap – the difference between the amount of interest-earning assets and interest-bearing liabilities expected to reprice at a given point in time – at September 30, 2015. The table estimates the impact of an upward or downward change in market interest rates of 100 and 200 basis points.

Cumulative Stressed Repricing Gap

	Month 3			Month 6			Month 12			Month 24			Month 36			Month 60			Long Term
	(Dollars in Thousands)
Base Case Up 200 bp
Cumulative Gap ($’s)		$(15,540	)		$(32,499	)		$(10,128	)		$20,281			$25,925			$23,310			$25,884
% of Total Assets		-4.7	%		-9.7	%		-3.0	%		6.1	%		7.8	%		7.0	%		7.7	%
Base Case Up 100 bp
Cumulative Gap ($’s)		$(15,302	)		$(32,045	)		$  (9,314	)		$21,648			$27,652			$25,396			$25,884
% of Total Assets		-4.6	%		-9.6	%		-2.8	%		6.5	%		8.3	%		7.6	%		7.7	%
Base Case No Change
Cumulative Gap ($’s)		$(14,588	)		$(30,704	)		$  (6,942	)		$25,585			$32,557			$30,970			$25,884
% of Total Assets		-4.4	%		-9.2	%		-2.1	%		7.7	%		9.7	%		9.3	%		7.7	%
Base Case Down 100 bp
Cumulative Gap ($’s)		$(14,177	)		$(29,938	)		$  (5,619	)		$27,653			$34,976			$33,331			$25,884
% of Total Assets		-4.2	%		-9.0	%		-1.7	%		8.3	%		10.5	%		10.0	%		7.7	%
Base Case Down 200 bp
Cumulative Gap ($’s)		$(13,657	)		$(28,970	)		$  (3,953	)		$30,121			$37,702			$35,714			$25,884
% of Total Assets		-4.1	%		-8.7	%		-1.2	%		9.0	%		11.3	%		10.7	%		7.7	%

The Company utilizes an income simulation model to measure interest rate risk and to manage interest rate sensitivity. The Company believes that income simulation modeling may enable the Company to better estimate the possible effects on net interest income due to changing market interest rates. Other key model parameters include: estimated prepayment rates on the Company’s loan, mortgage-backed securities and investment portfolios; savings decay rate assumptions; and the repayment terms and embedded options of the Company’s borrowings.

51

The following table presents the simulated impact of a 100 and 200 basis point upward or downward (parallel) shift in market interest rates on net interest income, return on average equity, return on average assets and the market value of portfolio equity at September 30, 2015. This analysis was done assuming that the interest-earning assets will average approximately $345 million and $366 million over a projected twelve and twenty-four month period, respectively, for the estimated impact on change in net interest income, return on average equity and return on average assets. The estimated changes in market value of equity were calculated using balance sheet levels at September 30, 2015. Actual future results could differ materially from our estimates primarily due to unknown future interest rate changes and the level of prepayments on our investment and loan portfolios and future FDIC regular and special assessments.

Analysis of Sensitivity to Changes in Market Interest Rates

	Twelve Month Forward Modeled Change in Market Interest Rates
	September 30, 2016															September 30, 2017
Estimated impact on:	-200			-100			0			+100			+200			-200			-100			0			+100			+200
Change in net interest income		-8.7	%		-7.5	%		-			-6.5	%		-6.8	%		-21.5	%		-19.0	%		-			-5.3	%		3.4	%
Return on average equity		3.83	%		3.78	%		4.63	%		3.89	%		3.86	%		3.67	%		4.00	%		6.42	%		5.81	%		6.95	%
Return on average assets		0.36	%		0.38	%		0.44	%		0.38	%		0.38	%		0.38	%		0.42	%		0.61	%		0.59	%		0.71	%
Market value of equity (in thousands)	$	37,178		$	37,149			$37,371			$36,720			$34,694

The table below provides information about the Company’s anticipated transactions comprised of firm loan commitments and other commitments, including undisbursed letters and lines of credit, at September 30, 2015. The Company used no derivative financial instruments to hedge such anticipated transactions as of September 30, 2015.

Anticipated Transactions
(Dollars in Thousands)
Undisbursed construction and development loans
Fixed rate	$	3,416
		4.06	%
Adjustable rate	$	1,329
		5.00	%
Undisbursed lines of credit
Adjustable rate	$	6,458
		3.85	%
Loan origination commitments
Fixed rate	$	5,980
		3.57	%
Letters of credit
Adjustable rate	$	130
		4.25	%
	$	17,313

52

In the ordinary course of its construction lending business, the Savings Bank enters into performance standby letters of credit. Typically, the standby letters of credit are issued on behalf of a builder to a third party to ensure the timely completion of a certain aspect of a construction project or land development. At September 30, 2015, the Savings Bank had two performance standby letters of credit outstanding totaling approximately $130 thousand. Both performance letters of credit are secured by developed property. The letters of credit will mature within fifteen months. In the event that the obligor is unable to perform its obligations as specified in the applicable letter of credit agreement, the Savings Bank would be obligated to disburse funds up to the amount specified in the letter of credit agreement. The Savings Bank maintains adequate collateral that could be liquidated to fund these contingent obligations.

ITEM 4.     CONTROLS AND PROCEDURES

As of September 30, 2015, an evaluation was performed under the supervision and with the participation of the Company’s management, including the Chief Executive Officer and Chief Accounting Officer, on the effectiveness of the design and operation of the Company’s disclosure controls and procedures (as defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934). Based on that evaluation, the Company’s management, including the Chief Executive Officer and Chief Accounting Officer, concluded that the Company’s disclosure controls and procedures were effective as of September 30, 2015.

Disclosure controls and procedures are the controls and other procedures that are designed to ensure that the information required to be disclosed by the Company in its reports filed and submitted under the Securities Exchange Act of 1934, as amended (“Exchange Act”) is recorded, processed, summarized and reported, within the time periods specified in the Securities and Exchange Commission’s rules and forms. Disclosure controls and procedures include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in its reports filed under the Exchange Act is accumulated and communicated to the Company’s management, including the principal executive officer and principal accounting officer, as appropriate to allow timely decisions regarding required disclosure.

During the quarter ended September 30, 2015, no change in the Company’s internal controls over financial reporting (as defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) has occurred that has materially affected, or is reasonably likely to materially affect, the Company’s internal controls over financial reporting.

53

PART II - OTHER INFORMATION

ITEM 1. Legal Proceedings

(a) The Company is involved with various legal actions arising in the ordinary course of business. Management believes the outcome of these matters will have no material effect on the consolidated operations or consolidated financial condition of WVS Financial Corp.

(b) Not applicable.

ITEM 1A. Risk Factors

There are no material changes to the risk factors included in Item 1A of the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2015.

ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a) Not applicable.

(b) Not applicable.

(c) The following table sets forth information with respect to purchases of common stock of the Company made by the WVS Financial Corp. Employee Stock Ownership Plan (ESOP) during the three months ended September 30, 2015.

AFFILIATE PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares     Purchased(1)		Average Price   Paid per Share ($)		Total Number of Shares Purchased as part of Publicly   Announced Plans   or Programs(2)		Approximate Dollar Value of Shares that May Yet Be Purchased   Under the Plans or   Programs(3)
07/01/15 – 07/31/15		-		-		-	$	630,400
08/01/15 – 08/31/15		-		-		-	$	630,400
09/01/15 – 09/30/15		-		-		-	$	630,400
Total		-		-		-	$	630,400

(1) All shares indicated were purchased under the Company’s ESOP Stock Purchase Program.

(2) Shares purchased using funds borrowed from the Company.

(3) ESOP Stock Purchase Program

(a) Announced March 31, 2015.

(b) $750,000 of common shares approved for purchase.

(c) No fixed date of expiration.

(d) This Program has not expired and has $630,400 of shares remaining to be purchased at September 30, 2015.

(e) Not applicable.

54

The following table sets forth information with respect to purchases of common stock of the Company made by WVS Financial Corp. during the three months ended September 30, 2015.

COMPANY PURCHASES OF EQUITY SECURITIES
Period	Total Number of Shares   Purchased(1)		Average Price   Paid per Share ($)		Total Number of Shares Purchased as part of Publicly   Announced Plans   or Programs(1)		Maximum Number of Shares that May Yet Be Repurchased   Under the Plans or   Programs(2)
07/01/15 – 07/31/15		1,590	$	11.50		1,590		22,944
08/01/15 – 08/31/15		-		-		-		22,944
09/01/15 – 09/30/15		-		-		-		22,944
Total		1,590	$	11.50		1,590		22,944

(1) All shares indicated were purchased under the Company’s reopened Tenth Stock Repurchase Program.

(2) Tenth Stock Repurchase Program

(a) Announced April 30, 2014.

(b) 41,745 common shares approved for repurchase.

(c) No fixed date of expiration.

(d) This Program has not expired and has 22,944 shares remaining to be purchased at September 30, 2015.

(e) Not applicable.

ITEM 3. Defaults Upon Senior Securities

Not applicable.

ITEM 4. Mine Safety Disclosures

Not applicable.

ITEM 5. Other Information

(a) Not applicable.

(b) Not applicable.

55

ITEM 6. Exhibits

The following exhibits are filed as part of this Form 10-Q, and this list includes the Exhibit Index.

Number	Description	Page
31.1	Rule 13a-14(a) / 15d-14(a) Certification of the Chief Executive Officer	E-1
31.2	Rule 13a-14(a) / 15d-14(a) Certification of the Chief Accounting Officer	E-2
32.1	Section 1350 Certification of the Chief Executive Officer	E-3
32.2	Section 1350 Certification of the Chief Accounting Officer	E-4
99	Report of Independent Registered Public Accounting Firm	E-5
101.INS	XBRL Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definitions Linkbase Document

56

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

	WVS FINANCIAL CORP.
November 13, 2015	BY:	/s/ David J. Bursic
Date		David J. Bursic   President and Chief Executive Officer   (Principal Executive Officer)
November 13, 2015	BY:	/s/ Keith A. Simpson
Date		Keith A. Simpson   Vice-President, Treasurer and Chief Accounting Officer   (Principal Accounting Officer)

57

EX-31.1

EXHIBIT 31.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, David J. Bursic, certify that:

1. I have reviewed this quarterly report on Form 10-Q of WVS Financial Corp. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2015	/s/ David J. Bursic
	David J. Bursic
	President and Chief Executive Officer

E-1

EX-31.2

EXHIBIT 31.2

CERTIFICATION OF CHIEF FINANCIAL OFFICER

Pursuant to Rules 13a-14 and 15d-14 of the Securities Exchange Act of 1934

and Section 302 of the Sarbanes-Oxley Act of 2002

I, Keith A. Simpson, certify that:

1. I have reviewed this quarterly report on Form 10-Q of WVS Financial Corp. (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a) Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b) Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c) Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d) Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officers and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of registrant’s board of directors (or persons performing the equivalent functions):

(a) All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b) Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: November 13, 2015	/s/ Keith A. Simpson
	Keith A. Simpson
	Vice-President and Chief Accounting Officer

E-2

EX-32.1

Exhibit 32.1

CERTIFICATION OF CHIEF EXECUTIVE OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

The undersigned executive officer of WVS Financial Corp. (the “Registrant”) hereby certifies that the Registrant’s Quarterly Report on Form 10-Q for the three months ended September 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ David J. Bursic

David J. Bursic

President and

Chief Executive Officer

Date:  November 13, 2015

Note:     A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to WVS Financial Corp. and will be retained by WVS Financial Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

E-3

EX-32.2

Exhibit 32.2

CERTIFICATION OF CHIEF ACCOUNTING OFFICER

Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 (18 U.S.C. 1350)

The undersigned executive officer of WVS Financial Corp. (the “Registrant”) hereby certifies that the Registrant’s Quarterly Report on Form 10-Q for the three months ended September 30, 2015 fully complies with the requirements of Section 13(a) of the Securities Exchange Act of 1934 and that the information contained therein fairly presents, in all material respects, the financial condition and results of operations of the Registrant.

/s/ Keith A. Simpson

Keith A. Simpson

Vice-President and

Chief Accounting Officer

Date:  November 13, 2015

Note:    A signed original of this written statement required by Section 906 of the Sarbanes-Oxley Act has been provided to WVS Financial Corp. and will be retained by WVS Financial Corp. and furnished to the Securities and Exchange Commission or its staff upon request.

E-4

EX-99

Exhibit 99

REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM

Board of Directors and Stockholders

WVS Financial Corp.

We have reviewed the accompanying consolidated balance sheet of WVS Financial Corp. (the “Company”) and subsidiary as of September 30, 2015; the related consolidated statements of income and comprehensive income for the three-month periods ended September 30, 2015 and 2014; the related consolidated statement of changes in stockholders’ equity for the three-month period ended September 30, 2015; and the related consolidated statement of cash flows for the three-month periods ended September 30, 2015 and 2014. These consolidated financial statements are the responsibility of the Company’s management.

We conducted our reviews in accordance with standards of the Public Company Accounting Oversight Board (United States). A review of interim financial information consists principally of applying analytical procedures to financial data and making inquiries of persons responsible for financial and accounting matters. It is substantially less in scope than an audit conducted in accordance with standards of the Public Company Accounting Oversight Board (United States), the objective of which is the expression of an opinion regarding the financial statements taken as a whole. Accordingly, we do not express such an opinion.

Based on our reviews, we are not aware of any material modifications that should be made to the accompanying financial statements referred to above for them to be in conformity with U.S. generally accepted accounting principles.

We have previously audited, in accordance with standards of the Public Company Accounting Oversight Board (United States), the consolidated balance sheet of WVS Financial Corp. as of June 30, 2015, and the related consolidated statements of income, comprehensive income, changes in stockholders’ equity, and cash flows for the year then ended (not presented herein), and in our report dated September 17, 2015, we expressed an unqualified opinion on those consolidated financial statements. In our opinion, the information set forth in the accompanying consolidated balance sheet as of June 30, 2015, is fairly stated, in all material respects, in relation to the consolidated balance sheet from which it has been derived.

/s/ S.R. Snodgrass, P.C.

Wexford, PA

November 13, 2015

E-5

XML

MORTGAGE-BACKED SECURITIES (Schedule of Amortized Cost and Fair Values of Mortgage-Backed Securities) (Details) - USD ($) $ in Thousands	3 Months Ended		12 Months Ended
	Sep. 30, 2015		Jun. 30, 2015
HELD TO MATURITY
Amortized Cost	$ 25,123		$ 36,618
Gross Unrealized Gains	470		455
Gross Unrealized Losses	(1)		(94)
Total	25,592		36,979
Collateralized Mortgage Obligations [Member]
HELD TO MATURITY
Amortized Cost	151,428		162,639
Gross Unrealized Gains	1,564		1,535
Gross Unrealized Losses	(711)		(909)
Total	152,281		163,265
Agency [Member]
HELD TO MATURITY
Amortized Cost	149,553		160,614
Gross Unrealized Gains	1,224		1,130
Gross Unrealized Losses	(711)		(909)
Total	150,066		160,835
Private-label [Member]
HELD TO MATURITY
Amortized Cost	1,875		2,025
Gross Unrealized Gains	$ 340		$ 405
Gross Unrealized Losses
Total	$ 2,215	[1]	$ 2,430

[1] Fair value estimate provided by the Company's independent third party valuation consultant.

XML

FEDERAL HOME LOAN BANK (FHLB) ADVANCES (Schedule of Contractual Maturities of Federal Home Loan Bank Long-Term Advances) (Details) - USD ($) $ in Thousands		3 Months Ended
		Sep. 30, 2015	Jun. 30, 2015
Debt Instrument [Line Items]
Federal Home Loan Bank advances: long-term		$ 117,805	$ 117,805
Convertible Debt [Member]
Debt Instrument [Line Items]
Maturity range, minimum		Jun. 22, 2016
Maturity range, maximum		Jul. 27, 2017
Weighted-average interest rate	[1]	4.44%
Stated interest rate range, minimum		4.26%
Stated interest rate range, maximum		5.16%
Federal Home Loan Bank advances: long-term		$ 12,500	12,500
Adjustable Debt [Member]
Debt Instrument [Line Items]
Maturity range, minimum		May 06, 2016
Maturity range, maximum		Sep. 01, 2017
Weighted-average interest rate	[1]	0.32%
Stated interest rate range, minimum		0.30%
Stated interest rate range, maximum		0.39%
Federal Home Loan Bank advances: long-term		$ 105,305	$ 105,305
Federal Home Loan Bank Advances [Member]
Debt Instrument [Line Items]
Weighted-average interest rate		0.76%
Federal Home Loan Bank advances: long-term		$ 117,805

[1] As of September 30, 2015.

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Recorded Investment) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2014 USD ($)
Troubled Debt Restructurings Commercial Real Estate
Financing Receivable, Modifications [Line Items]
Number of contracts	1
Pre-Modification Outstanding Recorded Investment	$ 49
Post-Modification Outstanding Recorded Investment	$ 49
Troubled Debt Restructurings That Subsequently Defaulted Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Number of contracts
Pre-Modification Outstanding Recorded Investment
Post-Modification Outstanding Recorded Investment

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Impaired Loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Financing Receivable, Impaired [Line Items]
Total impaired loans			$ 49
Allocated allowance on impaired loans
Average impaired loans	$ 48	$ 199
Income recognized on impaired loans	$ 1	$ 1
First Mortgage Loans - Construction [Member]
Financing Receivable, Impaired [Line Items]
Average impaired loans
Income recognized on impaired loans
First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Impaired [Line Items]
Average impaired loans
Income recognized on impaired loans
Commercial real estate loans
Financing Receivable, Impaired [Line Items]
Impaired loans without an allocated allowance			$ 49
Average impaired loans	$ 48	$ 49
Income recognized on impaired loans	$ 1
Consumer Loans - Home Equity Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Impaired loans with an allocated allowance
Allocated allowance on impaired loans
Average impaired loans		$ 150
Income recognized on impaired loans		$ 1

XML

STOCK BASED COMPENSATION DISCLOSURE (Details)	3 Months Ended
	Sep. 30, 2015 shares
STOCK BASED COMPENSATION DISCLOSURE [Abstract]
Number of options and restricted shares authorized for issuance under the 2008 Stock Incentive Plan	152,000
Number of restricted shares authorized for issuance under the 2008 Incentive Plan	38,000
Vesting period for plan	5 years
Contractual term	10 years

XML

OTHER BORROWINGS (Schedule of Other Short-Term Borrowings) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Short-term Debt [Line Items]
Ending balance	$ 7,950
Other Short Term Borrowings [Member]
Short-term Debt [Line Items]
Ending balance	7,950
Average balance	6,317	$ 1,378
Maximum month-end balance	$ 9,700	$ 9,464
Average interest rate	0.38%	0.36%
Weighted-average rate	0.41%

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables)

3 Months Ended

Sep. 30, 2015

ACCUMULATED OTHER COMPREHENSIVE LOSS

Schedule of Changes in Accumulated Other Comprehensive loss

	Three Months Ended September 30, 2015
	(Dollars in Thousands – net of tax)
	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Held-to-Maturity Securities			Total
Beginning Balance – June 30, 2015	$	(35	)	$	(426	)	$	(461	)
Other comprehensive income (loss) before reclassifications		8			36			44
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-
Net current-period other comprehensive income (loss)		8			36			44
Ending Balance – September 30, 2015	$	(27	)	$	(390	)	$	(417	)

	Three Months Ended September 30, 2014
	(Dollars in Thousands – net of tax)
	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Held-to-Maturity Securities			Total
Beginning Balance – June 30, 2014	$	130		$	(550	)	$	(420	)
Other comprehensive income (loss) before reclassifications		(41	)		40			(1	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-
Net current-period other comprehensive income (loss)		(41	)		40			(1	)
Ending Balance – September 30, 2014	$	89		$	(510	)	$	(421	)

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Loans by Internal Classification) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
First Mortgage Loans - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 4,935	$ 3,032
First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	763	653
First Mortgage Loans - Multi-family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	5,992	6,084
First Mortgage Loans - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	3,110	3,395
Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 1,206	$ 1,251
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Pass [Member] | First Mortgage Loans - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 4,935	$ 3,032
Pass [Member] | First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	559	445
Pass [Member] | First Mortgage Loans - Multi-family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	5,992	6,084
Pass [Member] | First Mortgage Loans - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	3,110	3,346
Pass [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 1,206	$ 1,251
Pass [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Special Mention [Member] | First Mortgage Loans - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Special Mention [Member] | First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Special Mention [Member] | First Mortgage Loans - Multi-family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Special Mention [Member] | First Mortgage Loans - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Special Mention [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Special Mention [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Substandard [Member] | First Mortgage Loans - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Substandard [Member] | First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 204	$ 208
Substandard [Member] | First Mortgage Loans - Multi-family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Substandard [Member] | First Mortgage Loans - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable		$ 49
Substandard [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Substandard [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Doubtful [Member] | First Mortgage Loans - Construction [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Doubtful [Member] | First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Doubtful [Member] | First Mortgage Loans - Multi-family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Doubtful [Member] | First Mortgage Loans - Commercial [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Doubtful [Member] | Commercial Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable
Doubtful [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable

XML

UNREALIZED LOSSES ON SECURITIES (Schedule of Gross Unrealized Losses and Fair Value) (Details) - USD ($) $ in Thousands		Sep. 30, 2015	Jun. 30, 2015
Less Than Six Months
Fair Value		$ 47,100	$ 77,583
Gross Unrealized Losses		(84)	(324)
Six through Twelve Months
Fair Value		35,400	23,029
Gross Unrealized Losses		(509)	(669)
Twelve Months or Greater
Fair Value		19,768	16,092
Gross Unrealized Losses		(222)	(125)
Total
Fair Value		102,268	116,704
Gross Unrealized Losses		(815)	(1,118)
Corporate Debt Securities [Member]
Less Than Six Months
Fair Value		38,537	28,284
Gross Unrealized Losses		(73)	(88)
Six through Twelve Months
Fair Value		8,115	1,285
Gross Unrealized Losses		$ (29)	$ (5)
Twelve Months or Greater
Fair Value
Gross Unrealized Losses
Total
Fair Value		$ 46,652	$ 29,569
Gross Unrealized Losses		(102)	(93)
Foreign Debt Securities [Member]
Less Than Six Months
Fair Value	[1]	1,574	4,780
Gross Unrealized Losses	[1]	$ (1)	(16)
Six through Twelve Months
Fair Value	[1]		501
Gross Unrealized Losses	[1]		$ (1)
Twelve Months or Greater
Fair Value	[1]
Gross Unrealized Losses	[1]
Total
Fair Value	[1]	$ 1,574	$ 5,281
Gross Unrealized Losses	[1]	(1)	(17)
U.S. Government Agency Securities [Member]
Less Than Six Months
Fair Value		499	21,318
Gross Unrealized Losses		$ (1)	$ (94)
Six through Twelve Months
Fair Value
Gross Unrealized Losses
Twelve Months or Greater
Fair Value
Gross Unrealized Losses
Total
Fair Value		$ 499	$ 21,318
Gross Unrealized Losses		(1)	(94)
Collateralized Mortgage Obligations [Member]
Less Than Six Months
Fair Value		5,788	22,504
Gross Unrealized Losses		(9)	(121)
Six through Twelve Months
Fair Value		27,285	21,243
Gross Unrealized Losses		(480)	(663)
Twelve Months or Greater
Fair Value		19,768	16,092
Gross Unrealized Losses		(222)	(125)
Total
Fair Value		52,841	59,839
Gross Unrealized Losses		(711)	(909)
Obligations of States and Political Subdivisions [Member]
Less Than Six Months
Fair Value		$ 702	697
Gross Unrealized Losses			$ (5)
Six through Twelve Months
Fair Value
Gross Unrealized Losses
Twelve Months or Greater
Fair Value
Gross Unrealized Losses
Total
Fair Value		$ 702	$ 697
Gross Unrealized Losses			$ (5)

[1] U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.

XML

MORTGAGE-BACKED SECURITIES (Narrative) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Schedule of Held-to-maturity Securities [Line Items]
Investment securities - held to maturity	$ 25,123		$ 36,618
Purchases of mortgage-backed securities		$ 6,081
Accretion of other comprehensive loss on other-than-temporarily impaired securities held to maturity	$ 54	$ 61
Mortgage-backed securities pledged as collateral	149,600		144,100
Mortgage-backed securities pledged as collateral, fair value	150,100		144,200
Mortgage-backed securities pledged as collateral, excess collateral	19,200		16,500
Collateralized Mortgage Obligations [Member]
Schedule of Held-to-maturity Securities [Line Items]
Investment securities - held to maturity	151,428		162,639
Proceeds from repayments mortgage-backed securities	204
MBS comprised of adjustable or floating rate investments	$ 151,400		$ 162,600
Percent of MBS comprised of adjustable or floating rate investments	100.00%		100.00%
Mortgage-backed Securities, Issued by US Government Sponsored Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Investment securities - held to maturity	$ 149,553		$ 160,614
Proceeds from repayments mortgage-backed securities	11,200
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Schedule of Held-to-maturity Securities [Line Items]
Investment securities - held to maturity	1,875		$ 2,025
Proceeds from repayments mortgage-backed securities	11,100
Accretion of other comprehensive loss on other-than-temporarily impaired securities held to maturity	$ 54

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Primary Segments of Allowance for Loan Losses) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 304	$ 234
Charge-offs
Recoveries
Provisions	$ 19	$ 3
ALLL Balance, Ending	$ 323	237
Individually evaluated for impairment		37
Collectively evaluated for impairment	$ 323	200
1 - 4 Family [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 125	$ 103
Charge-offs
Recoveries
Provisions	$ 18	$ (28)
ALLL Balance, Ending	$ 143	$ 75
Individually evaluated for impairment
Collectively evaluated for impairment	$ 143	$ 75
Construction [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 63	$ 14
Charge-offs
Recoveries
Provisions	$ 9	$ 7
ALLL Balance, Ending	$ 72	$ 21
Individually evaluated for impairment
Collectively evaluated for impairment	$ 72	$ 21
Land Acquisition & Development [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 9	$ 5
Charge-offs
Recoveries
Provisions		$ 5
ALLL Balance, Ending	$ 9	$ 10
Individually evaluated for impairment
Collectively evaluated for impairment	$ 9	$ 10
Multi-family [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 30	$ 12
Charge-offs
Recoveries
Provisions		$ (1)
ALLL Balance, Ending	$ 30	$ 11
Individually evaluated for impairment
Collectively evaluated for impairment	$ 30	$ 11
Commercial [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 34	$ 45
Charge-offs
Recoveries
Provisions	$ (3)	$ (2)
ALLL Balance, Ending	$ 31	$ 43
Individually evaluated for impairment
Collectively evaluated for impairment	$ 31	$ 43
Consumer Loans [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 37	$ 47
Charge-offs
Recoveries
Provisions	$ (5)	$ 22
ALLL Balance, Ending	$ 32	69
Individually evaluated for impairment		37
Collectively evaluated for impairment	$ 32	32
Commercial Loans [Member]
Summary of the changes in the allowance for loan losses:
ALLL Balance, Beginning	$ 6	$ 8
Charge-offs
Recoveries
Provisions
ALLL Balance, Ending	$ 6	$ 8
Individually evaluated for impairment
Collectively evaluated for impairment	$ 6	$ 8

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015	Sep. 30, 2014	Jun. 30, 2014
FINANCIAL ASSETS
Cash and cash equivalents	$ 1,969	$ 3,573	$ 1,533	$ 1,360
Certificates of deposit	350	350
Investment securities - available for sale	89,199	66,916
Investment securities - held to maturity	25,123	36,618
Mortgage-backed securities - held to maturity	151,428	162,639
Net loans receivable	52,543	46,163
Accrued interest receivable	1,387	1,198
FHLB stock	6,482	6,619
Bank owned life insurance	4,310	4,276
Deposits
Non-interest bearing deposits	16,512	17,806
NOW accounts	20,205	20,238
Savings accounts	44,686	45,092
Money market accounts	24,183	23,601
Long-term Federal Home Loan Bank Advances	117,805	117,805
FHLB short-term advances	38,392	$ 37,830
Other short-term borrowings	7,950
Accrued interest payable	164	$ 156
Agency [Member]
FINANCIAL ASSETS
Investment securities - held to maturity	149,553	160,614
Private-label [Member]
FINANCIAL ASSETS
Investment securities - held to maturity	1,875	2,025
Level 1 [Member]
FINANCIAL ASSETS
Cash and cash equivalents	1,969	3,573
Certificates of deposit	$ 350	$ 350
Investment securities - available for sale
Investment securities - held to maturity
Net loans receivable
Accrued interest receivable	$ 1,387	$ 1,198
FHLB stock	6,482	6,619
Bank owned life insurance	4,310	4,276
Deposits
Non-interest bearing deposits	16,512	17,806
NOW accounts	20,205	20,238
Savings accounts	44,686	45,092
Money market accounts	$ 24,183	$ 23,601
Certificates of deposit
Advance payments by borrowers for taxes and insurance	$ 853	$ 865
Long-term Federal Home Loan Bank Advances
FHLB long-term advances - variable rate	$ 105,305	$ 105,305
FHLB short-term advances	38,392	$ 37,830
Other short-term borrowings	7,950
Accrued interest payable	$ 164	$ 156
Level 1 [Member] | Agency [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity
Level 1 [Member] | Private-label [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity
Level 2 [Member]
FINANCIAL ASSETS
Cash and cash equivalents
Certificates of deposit
Investment securities - available for sale	$ 89,199	$ 66,916
Investment securities - held to maturity	$ 25,592	$ 36,979
Net loans receivable
Accrued interest receivable
FHLB stock
Bank owned life insurance
Deposits
Non-interest bearing deposits
NOW accounts
Savings accounts
Money market accounts
Certificates of deposit
Advance payments by borrowers for taxes and insurance
Long-term Federal Home Loan Bank Advances
FHLB long-term advances - variable rate
FHLB short-term advances
Other short-term borrowings
Accrued interest payable
Level 2 [Member] | Agency [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity	$ 150,066	$ 160,835
Level 2 [Member] | Private-label [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity
Level 3 [Member]
FINANCIAL ASSETS
Cash and cash equivalents
Certificates of deposit
Investment securities - available for sale
Investment securities - held to maturity
Net loans receivable	$ 53,616	$ 46,897
Accrued interest receivable
FHLB stock
Bank owned life insurance
Deposits
Non-interest bearing deposits
NOW accounts
Savings accounts
Money market accounts
Certificates of deposit	$ 30,030	$ 31,267
Advance payments by borrowers for taxes and insurance
Long-term Federal Home Loan Bank Advances	$ 13,051	$ 13,174
FHLB long-term advances - variable rate
FHLB short-term advances
Other short-term borrowings
Accrued interest payable
Level 3 [Member] | Agency [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity
Level 3 [Member] | Private-label [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity	$ 2,215	$ 2,430
Carrying Amount [Member]
FINANCIAL ASSETS
Cash and cash equivalents	1,969	3,573
Certificates of deposit	350	350
Investment securities - available for sale	89,199	66,916
Investment securities - held to maturity	25,123	36,618
Net loans receivable	52,543	46,163
Accrued interest receivable	1,387	1,198
FHLB stock	6,482	6,619
Bank owned life insurance	4,310	4,276
Deposits
Non-interest bearing deposits	16,512	17,806
NOW accounts	20,205	20,238
Savings accounts	44,686	45,092
Money market accounts	24,183	23,601
Certificates of deposit	30,059	31,326
Advance payments by borrowers for taxes and insurance	853	865
Long-term Federal Home Loan Bank Advances	12,500	12,500
FHLB long-term advances - variable rate	105,305	105,305
FHLB short-term advances	38,392	$ 37,830
Other short-term borrowings	7,950
Accrued interest payable	164	$ 156
Carrying Amount [Member] | Agency [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity	149,553	160,614
Carrying Amount [Member] | Private-label [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity	1,875	2,025
Fair Value [Member]
FINANCIAL ASSETS
Cash and cash equivalents	1,969	3,573
Certificates of deposit	350	350
Investment securities - available for sale	89,199	66,916
Investment securities - held to maturity	25,592	36,979
Net loans receivable	53,616	46,897
Accrued interest receivable	1,387	1,198
FHLB stock	6,482	6,619
Bank owned life insurance	4,310	4,276
Deposits
Non-interest bearing deposits	16,512	17,806
NOW accounts	20,205	20,238
Savings accounts	44,686	45,092
Money market accounts	24,183	23,601
Certificates of deposit	30,030	31,267
Advance payments by borrowers for taxes and insurance	853	865
Long-term Federal Home Loan Bank Advances	13,051	13,174
FHLB long-term advances - variable rate	105,305	105,305
FHLB short-term advances	38,392	$ 37,830
Other short-term borrowings	7,950
Accrued interest payable	164	$ 156
Fair Value [Member] | Agency [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity	150,066	160,835
Fair Value [Member] | Private-label [Member]
FINANCIAL ASSETS
Mortgage-backed securities - held to maturity	$ 2,215	$ 2,430

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Nonaccrual Loans) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014	Jun. 30, 2015
Financing Receivable, Impaired [Line Items]
Principal outstanding on nonaccrual loans	$ 259		$ 309
Average nonaccrual loans	308	$ 565
Interest income that would have been recognized	5	8
Interest income recognized	$ 6	9
Interest income foregone		3
First Mortgage Loans - 1 - 4 Family Dwellings [Member]
Financing Receivable, Impaired [Line Items]
Principal outstanding on nonaccrual loans	$ 259		$ 260
Average nonaccrual loans	$ 260	$ 366
First Mortgage Loans - Construction [Member]
Financing Receivable, Impaired [Line Items]
Principal outstanding on nonaccrual loans
Average nonaccrual loans
First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Impaired [Line Items]
Principal outstanding on nonaccrual loans
Average nonaccrual loans
Commercial Real Estate [Member]
Financing Receivable, Impaired [Line Items]
Principal outstanding on nonaccrual loans			$ 49
Average nonaccrual loans	$ 48	$ 49
Consumer Loans - Home Equity Lines of Credit [Member]
Financing Receivable, Impaired [Line Items]
Principal outstanding on nonaccrual loans
Average nonaccrual loans		$ 150

XML

BASIS OF PRESENTATION

3 Months Ended

Sep. 30, 2015

BASIS OF PRESENTATION [Abstract]

BASIS OF PRESENTATION

1.BASIS OF PRESENTATION

The accompanying unaudited consolidated financial statements have been prepared in accordance with the instructions for Form 10-Q and therefore do not include information or footnotes necessary for a complete presentation of financial condition, results of operations, and cash flows in conformity with U.S. generally accepted accounting principles (GAAP).   However, all adjustments (consisting only of normal recurring adjustments) which, in the opinion of management, are necessary for a fair presentation have been included.  The results of operations for the threemonths ended September 30, 2015, are not necessarily indicative of the results which may be expected for the entire fiscal year.

XML

UNREALIZED LOSSES ON SECURITIES (Schedule of Changes in the Credit Loss) (Details) - Collateralized Mortgage Obligations [Member] - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Changes in the credit loss component of credit impaired mortgage-backed securities:
Beginning balance	$ 248	$ 302
Initial credit impairment
Subsequent credit impairment
Reductions for amounts recognized in earnings due to intent or requirement to sell
Reductions for securities sold
Reduction for actual realized losses	$ (14)	$ (10)
Reduction for increase in cash flows expected to be collected
Ending Balance	$ 234	$ 292

XML

OTHER BORROWINGS (Tables)

3 Months Ended

Sep. 30, 2015

OTHER BORROWINGS [Abstract]

Schedule of Other Short-Term Borrowings

	September 30,			June 30,
	2015			2015
	(Dollars in Thousands)
Other short-term borrowings:
Ending balance	$	7,950		$	-
Average balance		6,317			1,378
Maximum month-end balance		9,700			9,464
Average interest rate		0.38	%		0.36	%
Weighted-average rate		0.41	%		-	%

Schedule of Contractual Maturity of Repurchase Agreements

	Remaining Contractual Maturity of the Repurchase Agreements
	Overnight and Continuous		Up to 30 Days		30 – 90    Days		Greater than   90 Days		Total
September 30, 2015
Repurchase agreements:	$	-	$	7,950	$	-	$	-	$	7,950
Total borrowings	$	-	$	7,950	$	-	$	-	$	7,950
Gross amount of recognized liabilities for repurchase agreements									$	7,950
Amounts related to agreements not included in offsetting disclosures above									$	-

XML

FEDERAL HOME LOAN BANK (FHLB) ADVANCES (Tables)

3 Months Ended

Sep. 30, 2015

FEDERAL HOME LOAN BANK (FHLB) ADVANCES [Abstract]

Schedule of Contractual Maturities of Federal Home Loan Bank Long-Term Advances

			Weighted-	Stated interest
	Maturity range		average	rate range			September 30,		June 30,
Description	from	to	interest rate(5)	from	to		2015		2015
							(Dollars in Thousands)
Convertible	06/22/16	07/27/17	4.44%	4.26%	5.16%	$		12,500	$	12,500
Adjustable	05/06/16	09/01/17	0.32%	0.30%	0.39%			105,305		105,305
Total						$		117,805	$	117,805

[5] As of September 30, 2015.

Maturities of Federal Home Loan Bank Long-Term Advances

				Weighted-
	Maturing During			Average
	Fiscal Year Ended			Interest
	June 30:		Amount	Rate
(Dollars in Thousands)
	2016	$	101,696	0.43	%
	2017		-	-
	2018		16,109	2.78
	2019		-	-
	2020 and thereafter		-	-
	Total	$	117,805	0.76

Schedule of Federal Home Loan Bank Short-Term Advances

	September 30,			June 30,
	2015			2015
	(Dollars in Thousands)
Ending balance	$	38,392		$	37,830
Average balance		31,675			23,496
Maximum month-end balance		38,392			37,830
Average interest rate		0.35	%		0.31	%
Weighted-average rate		0.35	%		0.32	%

XML

FEDERAL HOME LOAN BANK (FHLB) ADVANCES (Schedule of Federal Home Loan Bank Short-Term Advances) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
FHLB revolving and short-term advances:
Ending balance	$ 38,392	$ 37,830
Average balance	31,675	23,496
Maximum month-end balance	$ 38,392	$ 37,830
Average interest rate	0.35%	0.31%
Weighted-average rate	0.35%	0.32%
Remaining borrowing capacity	$ 22,600
Minimum [Member]
Federal Home Loan Bank, Advances [Line Items]
Spread over variable rate	0.05%
Maximum [Member]
Federal Home Loan Bank, Advances [Line Items]
Spread over variable rate	0.16%

XML

UNREALIZED LOSSES ON SECURITIES (Narrative) (Details) $ in Thousands	3 Months Ended
	Sep. 30, 2015 USD ($)	Sep. 30, 2014 USD ($)
Schedule of Investment Securities [Line Items]
Net accretion	$ 36	$ 40
Less: Income tax effect	$ 18	$ 21
Number of positions that are impaired	48
Mortgage-backed Securities, Issued by Private Enterprises [Member]
Schedule of Investment Securities [Line Items]
Net accretion	$ 36
Less: Income tax effect	$ 18

XML

FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Sep. 30, 2015

FAIR VALUE MEASUREMENTS [Abstract]

Assets Measured at Fair Value on a Recurring Basis

			September 30, 2015
			Level I		Level II		Level III		Total
			(Dollars in Thousands)
Assets measured on a recurring basis:
Investment securities – available for sale:
	Obligations of states and political
	subdivisions	$	-	$	702	$	-	$	702
	Corporate securities		-		83,750		-		83,750
	Foreign debt securities (6)		-		4,747		-		4,747
		$	-	$	89,199	$	-	$	89,199

			June 30, 2015
			Level I		Level II		Level III		Total
			(Dollars in Thousands)
Assets measured on a recurring basis:
Investment securities – available for sale:
	Obligations of states and political
	subdivisions	$	-	$	697	$	-	$	697
	Corporate securities		-		60,938		-		60,938
	Foreign debt securities (7)		-		5,281		-		5,281
		$	-	$	66,916	$	-	$	66,916

[6]	U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.
[7]	U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.

Assets Measured at Fair Value on a Nonrecurring Basis

	September 30, 2015
	Level I		Level II		Level III		Total
	(Dollars in Thousands)
Assets measured on a non-recurring basis:
Impaired loans	$	-	$	-	$	-		-
Total	$	-	$	-	$	-	$	-

	September 30, 2015
	Level I		Level II		Level III		Total
	(Dollars in Thousands)
Assets measured on a non-recurring basis:
Impaired loans	$	-	$	-	$	49	$	49
Total	$	-	$	-	$	49	$	49

Schedule of Significant Observable Inputs

		Fair Value at
		September 30, 2015		June 30, 2015	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Range (Weighted Average)
		(Dollars in Thousands)
Impaired loans	$	-	$	49	Appraisal of collateral[8]	Discounted appraisal[9]	0%/0%

8	Fair value is generally determined through independent appraisals of the underlying collateral, which generallyinclude various level III inputs which are not identifiable.
9	Appraisals may be adjusted by management for qualitative factors such as economic conditions. The range and weighted average of appraisal adjustments are presented as a percentage of the appraisals.

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

3 Months Ended

Sep. 30, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

Schedule of Carrying Amounts and Fair Values of Financial Instruments

		September 30, 2015
	Carrying		Fair
	Amount		Value		Level I		Level II		Level III
		(Dollars in Thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	1,969	$	1,969	$	1,969	$	-	$	-
Certificates of deposit		350		350		350		-		-
Investment securities – available for sale		89,199		89,199		-		89,199		-
Investment securities – held to maturity		25,123		25,592		-		25,592		-
Mortgage-backed securities – held to maturity:
Agency		149,553		150,066		-		150,066		-
Private-label		1,875		2,215		-		-		2,215
Net loans receivable		52,543		53,616		-		-		53,616
Accrued interest receivable		1,387		1,387		1,387		-		-
FHLB stock		6,482		6,482		6,482		-		-
Bank owned life insurance		4,310		4,310		4,310		-		-
FINANCIAL LIABILITIES
Deposits:
Non-interest bearing deposits	$	16,512	$	16,512	$	16,512	$	-	$	-
NOW accounts		20,205		20,205		20,205		-		-
Savings accounts		44,686		44,686		44,686		-		-
Money market accounts		24,183		24,183		24,183		-		-
Certificates of deposit		30,059		30,030		-		-		30,030
Advance payments by borrowers for taxes     and insurance		853		853		853		-		-
FHLB long-term advances – fixed rate		12,500		13,051		-		-		13,051
FHLB long-term advances – variable rate		105,305		105,305		105,305		-		-
FHLB short-term advances		38,392		38,392		38,392		-		-
Other short-term borrowings		7,950		7,950		7,950		-		-
Accrued interest payable		164		164		164		-		-

		June 30, 2015
	Carrying		Fair
	Amount		Value		Level I		Level II		Level III
		(Dollars in Thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	3,573	$	3,573	$	3,573	$	-	$	-
Certificates of deposit		350		350		350		-		-
Investment securities – available for sale		66,916		66,916		-		66,916		-
Investment securities – held to maturity		36,618		36,979		-		36,979		-
Mortgage-backed securities – held to maturity:
Agency		160,614		160,835		-		160,835		-
Private-label		2,025		2,430		-		-		2,430
Net loans receivable		46,163		46,897		-		-		46,897
Accrued interest receivable		1,198		1,198		1,198		-		-
FHLB stock		6,619		6,619		6,619		-		-
Bank owned life insurance		4,276		4,276		4,276		-		-
FINANCIAL LIABILITIES
Deposits:
Non-interest bearing deposits	$	17,806	$	17,806	$	17,806	$	-	$	-
NOW accounts		20,238		20,238		20,238		-		-
Savings accounts		45,092		45,092		45,092		-		-
Money market accounts		23,601		23,601		23,601		-		-
Certificates of deposit		31,326		31,267		-		-		31,267
Advance payments by borrowers for taxes     and insurance		865		865		865		-		-
FHLB long-term advances – fixed rate		12,500		13,174		-		-		13,174
FHLB long-term advances- variable rate		105,305		105,305		105,305		-		-
FHLB short-term advances		37,830		37,830		37,830		-		-
Other short-term borrowings		-		-		-		-		-
Accrued interest payable		156		156		156		-		-

XML

CONSOLIDATED STATEMENT OF CASH FLOWS - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
OPERATING ACTIVITIES
Net income	$ 311	$ 299
Adjustments to reconcile net income to cash provided by (used for) operating activities:
Provision for loan losses	20	3
Depreciation	$ 25	20
Gain on sale of other real estate owned		(5)
Amortization of discounts, premiums and deferred loan fees	$ 487	120
Deferred income taxes	24	(4)
Increase in prepaid/accrued income taxes	35	37
Earnings on bank owned life insurance	(34)	(35)
Increase in accrued interest receivable	(189)	(285)
Increase (decrease) in accrued interest payable	$ 8	(2)
Increase (decrease) in deferred director compensation payable		$ 8
Decrease in unsettled security purchases	$ (1,969)
Other, net	(49)	$ (152)
Net cash provided by (used for) operating activities	(1,331)	$ 4
Available-for-sale:
Purchase of investment securities	(24,838)
Proceeds from repayments of investment securities	2,058	$ 1,208
Held-to-maturity:
Purchases of investment securities	$ (9,358)	(18,380)
Purchases of mortgage-backed securities		(6,081)
Proceeds from repayments of investment securities	$ 20,866	4,158
Proceeds from repayments of mortgage-backed securities	11,274	13,736
Purchase of certificates of deposit	(100)	(100)
Maturities/redemptions of certificates of deposit	100	348
Increase in net loans receivable	$ (6,401)	(1,377)
Proceeds from sale of other real estate owned		251
Purchase of FHLB stock	$ (1,643)	(1,214)
Redemption of FHLB stock	1,780	745
Acquisition of premises and equipment	(6)	(46)
Net cash used for investing activities	(6,268)	(6,752)
FINANCING ACTIVITIES
Net increase (decrease) in transaction and savings accounts	(1,151)	1,505
Net decrease in certificates of deposit	(1,267)	(1,189)
Net decrease in advance payments by borrowers for taxes and insurance	$ (12)	(321)
Proceeds from FHLB long-term advances - variable rate		6,109
Net increase in FHLB short-term advances	$ 562	$ 1,127
Net increase in other short-term borrowings	7,950
Purchase of treasury stock	$ (19)	$ (72)
Increase in unallocated ESOP shares		$ (156)
Release of ESOP shares	$ 13
Cash dividends paid	(81)	$ (82)
Net cash provided by financing activities	5,995	6,921
Increase (decrease) in cash and cash equivalents	(1,604)	173
CASH AND CASH EQUIVALENTS AT BEGINNING OF THE PERIOD	3,573	1,360
CASH AND CASH EQUIVALENTS AT END OF THE PERIOD	1,969	1,533
Cash paid during the period for:
Interest on deposits and borrowings	303	290
Income taxes	$ 150	127
Non-cash items:
Educational Improvement Tax Credit		9
Mortgage loans transferred to other real estate owned		$ 246

XML

EARNINGS PER SHARE (Details) - $ / shares	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
EARNINGS PER SHARE [Abstract]
Weighted average common shares outstanding	3,805,636	3,805,636
Average treasury stock shares	(1,766,351)	(1,754,526)
Average unallocated ESOP shares	(130,023)	(91,729)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share	1,909,262	1,959,381
Additional common stock equivalents (stock options) used to calculate diluted earnings per share
Weighted average common shares and common stock equivalents used to calculate diluted earnings per share	1,909,262	1,959,381
Employee Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Anti-dilutive securities	114,519	114,519
Exercise price	$ 16.20	$ 16.20

XML

MORTGAGE-BACKED SECURITIES (Schedule of Mortgage-Backed Securities by Contractual Maturity) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Amortized cost
Due in one year or less	$ 524
Due after five through ten years	14,088
Due after ten years	5,626
Total	25,123	$ 36,618
Fair value
Due in one year or less	548
Due after five through ten years	14,216
Due after ten years	5,640
Total	$ 25,592	36,979
HELD TO MATURITY, Weighted average yield
Due in one year or less	6.15%
Collateralized Mortgage Obligations [Member]
Amortized cost
Due after five through ten years	$ 416
Due after ten years	151,012
Total	151,428	162,639
Fair value
Due after five through ten years	430
Due after ten years	151,851
Total	$ 152,281	$ 163,265
HELD TO MATURITY, Weighted average yield
Due after five through ten years	1.62%
Due after ten years	1.31%
Total	1.31%

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of increased ALL reserve factors) (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
1 - 4 Family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Increase (decrease) in allowance for credit losses	$ 18	$ (28)
ALL reserve factor (as a percent)	0.35%	0.25%
Construction [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Increase (decrease) in allowance for credit losses	$ 9
1 - 4 family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
ALL reserve factor (as a percent)	0.75%	0.25%
5+ family [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
ALL reserve factor (as a percent)	1.00%	0.50%
Consumer Loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Increase (decrease) in allowance for credit losses	$ (5)	$ 22
Commercial real estate loans [Member]
Financing Receivable, Allowance for Credit Losses [Line Items]
Increase (decrease) in allowance for credit losses	$ (3)

XML

CONSOLIDATED BALANCE SHEET - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Assets
Cash and due from banks	$ 1,575	$ 1,839
Interest-earning demand deposits	394	1,734
Total cash and cash equivalents	1,969	3,573
Certificates of deposit	350	350
Investment securities available-for-sale (amortized cost of $89,238 and $66,968)	89,199	66,916
Investment securities held-to-maturity (fair value of $25,592 and $36,979)	25,123	36,618
Mortgage-backed securities held-to-maturity (fair value of $152,281 and $163,265)	151,428	162,639
Net loans receivable (allowance for loan losses of $323 and $304)	52,543	46,163
Accrued interest receivable	1,387	1,198
Federal Home Loan Bank (FHLB) stock, at cost	6,482	6,619
Premises and equipment, net	611	630
Bank owned life insurance	4,310	4,276
Deferred tax assets (net)	495	524
Other assets	192	210
TOTAL ASSETS	334,089	329,716
Deposits
Non-interest-bearing accounts	16,512	17,806
NOW accounts	20,205	20,238
Savings accounts	44,686	45,092
Money market accounts	24,183	23,601
Certificates of deposit	30,059	31,326
Advance payments by borrowers for taxes and insurance	853	865
Total deposits	136,498	138,928
Federal Home Loan Bank advances: long-term - fixed rate	12,500	12,500
Federal Home Loan Bank advances: long-term - variable rate	105,305	105,305
Federal Home Loan Bank advances: short-term	38,392	$ 37,830
Other Short-term Borrowings	7,950
Accrued interest payable	164	$ 156
Other liabilities	969	2,954
TOTAL LIABILITIES	$ 301,778	$ 297,673
Stockholders' equity:
Preferred stock: 5,000,000 shares, no par value per share, authorized; none Issued
Common stock: 10,000,000 shares, $.01 par value per share, authorized; 3,805,636 shares issued; 2,039,129 and 2,040,719 shares outstanding	$ 38	$ 38
Additional paid-in capital	21,485	21,485
Treasury stock: 1,766,507 and 1,764,917 shares at cost, respectively	(26,905)	(26,886)
Retained earnings, substantially restricted	39,583	39,353
Accumulated other comprehensive loss	(417)	(461)
Unallocated Employee Stock Ownership Plan ("ESOP") shares	(1,473)	(1,486)
TOTAL STOCKHOLDERS' EQUITY	32,311	32,043
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY	$ 334,089	$ 329,716

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Primary Segments of Loan Portfolio) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 52,687	$ 46,338
Individually evaluated for impairment		49
Collectively evaluated for impairment	$ 52,687	46,289
Plus: Deferred loan fees	179	129
Allowance for loan losses	(323)	(304)
Net Loans Receivable	52,543	46,163
First Mortgage Loans - 1 - 4 Family Dwellings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 33,733	$ 28,620
Individually evaluated for impairment
Collectively evaluated for impairment	$ 33,733	$ 28,620
First Mortgage Loans - Construction [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 4,935	$ 3,032
Individually evaluated for impairment
Collectively evaluated for impairment	$ 4,935	$ 3,032
First Mortgage Loans - Land Acquisition and Development [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 763	$ 653
Individually evaluated for impairment
Collectively evaluated for impairment	$ 763	$ 653
First Mortgage Loans - Multi-family Dwellings [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 5,992	$ 6,084
Individually evaluated for impairment
Collectively evaluated for impairment	$ 5,992	$ 6,084
First Mortgage Loans - Commercial [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 3,110	3,395
Individually evaluated for impairment		49
Collectively evaluated for impairment	$ 3,110	3,346
Consumer Loans - Home Equity [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 811	$ 1,175
Individually evaluated for impairment
Collectively evaluated for impairment	$ 811	$ 1,175
Consumer Loans - Home Equity Lines of Credit [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 1,967	$ 1,917
Individually evaluated for impairment
Collectively evaluated for impairment	$ 1,967	$ 1,917
Consumer Loans - Other [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 170	$ 211
Individually evaluated for impairment
Collectively evaluated for impairment	$ 170	$ 211
Commercial Loan [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans	$ 1,206	$ 1,251
Individually evaluated for impairment
Collectively evaluated for impairment	$ 1,206	$ 1,251
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans
Individually evaluated for impairment
Collectively evaluated for impairment

XML

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY - 3 months ended Sep. 30, 2015 - USD ($) $ in Thousands	Total	Common Stock [Member]	Additional Paid-in Capital [Member]	Treasury Stock [Member]	Retained Earnings - Substantially Restricted [Member]	Accumulated Other Comprehensive Loss [Member]	Unallocated ESOP Shares [Member]
Balance at Jun. 30, 2015	$ 32,043	$ 38	$ 21,485	$ (26,886)	$ 39,353	$ (461)	$ (1,486)
Net income	311				311
Other comprehensive income	44					44
Purchase of treasury stock (1,590 shares)	$ (19)			(19)
Increase in unallocated ESOP shares
Release of ESOP shares	$ 13						13
Cash dividends declared ($0.04 per share)	(81)				(81)
Balance at Sep. 30, 2015	$ 32,311	$ 38	$ 21,485	$ (26,905)	$ 39,583	$ (417)	$ (1,473)

XML

FAIR VALUE MEASUREMENTS (Assets Measured at Fair Value on a Recurring and Nonrecurring Basis) (Details) - USD ($) $ in Thousands		Sep. 30, 2015	Jun. 30, 2015
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis		$ 89,199	$ 66,916
Assets measured on non-recurring basis			49
Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on non-recurring basis			49
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis		$ 702	697
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis		83,750	60,938
Foreign Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis	[1]	$ 4,747	$ 5,281
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis
Assets measured on non-recurring basis
Fair Value, Inputs, Level 1 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on non-recurring basis
Fair Value, Inputs, Level 1 [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis
Fair Value, Inputs, Level 1 [Member] | Foreign Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis	[1]
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis		$ 89,199	$ 66,916
Assets measured on non-recurring basis
Fair Value, Inputs, Level 2 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on non-recurring basis
Fair Value, Inputs, Level 2 [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis		$ 702	$ 697
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis		83,750	60,938
Fair Value, Inputs, Level 2 [Member] | Foreign Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis	[1]	$ 4,747	$ 5,281
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis
Assets measured on non-recurring basis			$ 49
Fair Value, Inputs, Level 3 [Member] | Impaired Loans [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on non-recurring basis			$ 49
Fair Value, Inputs, Level 3 [Member] | Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis
Fair Value, Inputs, Level 3 [Member] | Foreign Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Assets measured on a recurring basis	[1]

[1] U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.

XML

INVESTMENT SECURITIES (Schedule of Investments by Contractual Maturity) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
AVAILABLE FOR SALE, Amortized cost
Due in one year or less	$ 32,638
Due after one through two years	$ 55,607
Due after two through three years
Due after three through five years	$ 993
Due after five through ten years
Due after ten years
Total	$ 89,238
AVAILABLE FOR SALE, Fair value
Due in one year or less	32,620
Due after one through two years	$ 55,595
Due after two through three years
Due after three through five years	$ 985
Due after five through ten years
Due after ten years
Total	$ 89,199
AVAILABLE FOR SALE, Weighted average yield
Due in one year or less	1.41%
Due after one through two years	1.51%
Due after two through three years
Due after three through five years	1.68%
Due after five through ten years
Due after ten years
Total	1.47%
HELD TO MATURITY, Amortized cost
Due in one year or less	$ 524
Due after one through two years	1,471
Due after two through three years	1,809
Due after three through five years	1,605
Due after five through ten years	14,088
Due after ten years	5,626
Total	25,123	$ 36,618
HELD TO MATURITY, Fair value
Due in one year or less	548
Due after one through two years	1,499
Due after two through three years	1,734
Due after three through five years	1,734
Due after five through ten years	14,216
Due after ten years	5,640
Total	$ 25,592	$ 36,979
HELD TO MATURITY, Weighted average yield
Due in one year or less	6.15%
Due after one through two years	3.46%
Due after two through three years	5.29%
Due after three through five years	4.96%
Due after five through ten years	1.82%
Due after ten years	1.75%
Total	2.44%

XML

EARNINGS PER SHARE (Tables)

3 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE [Abstract]

Schedule of Basic and Diluted Earnings Per Share

	Three Months Ended September 30,
	2015			2014
Weighted average common shares issued		3,805,636			3,805,636
Average treasury stock shares		(1,766,351	)		(1,754,526	)
Average unallocated ESOP shares		(130,023	)		(91,729	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share		1,909,262			1,959,381
Additional common stock equivalents (stock options) used to calculate diluted earnings per share		-			-
Weighted average common shares and common stock equivalents   used to calculate diluted earnings per share		1,909,262			1,959,381

XML

INVESTMENT SECURITIES (Narrative) (Details) $ in Millions	Sep. 30, 2015 USD ($)
INVESTMENT SECURITIES [Abstract]
Investment securities pledged as collateral	$ 14.7
Investment securities pledged as collateral, fair value	14.8
Excess collateral	$ 6.2

XML

MORTGAGE-BACKED SECURITIES (Tables)

3 Months Ended

Sep. 30, 2015

MORTGAGE-BACKED SECURITIES [Abstract]

Schedule of Information Relating To Private Label CMO Portfolio

		At September 30, 2015
		Rating					Book Value		Fair Value[3]		Life to Date Impairment Recorded in Earnings
Cusip #	Security Description	S&P		Moody's		Fitch	(in thousands)
126694CP1	CWHL SER 21 A11		N/A		Caa2	D	$	1,002	$	1,290	$	201
126694KF4	CWHL SER 24 A15		D		N/A	D		221		234		39
126694KF4	CWHL SER 24 A15		D		N/A	D		442		467		79
126694MP0	CWHL SER 26 1A5		D		N/A	D		210		224		36
							$	1,875	$	2,215	$	355

[3] Fair value estimate provided by the Company's independent third party valuation consultant.

Schedule of Amortized Cost and Fair Values of Mortgage-Backed Securities

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
September 30, 2015
HELD TO MATURITY
Collateralized mortgage obligations:
Agency	$	149,553	$	1,224	$	(711	)	$	150,066
Private-label		1,875		340		-			2,215
Total	$	151,428	$	1,564	$	(711	)	$	152,281

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2015		(Dollars in Thousands)
HELD TO MATURITY
Collateralized mortgage obligations:
Agency	$	160,614	$	1,130	$	(909	)	$	160,835
Private-label		2,025		405		-			2,430
Total	$	162,639	$	1,535	$	(909	)	$	163,265

Schedule of Mortgage-Backed Securities by Contractual Maturity

	Due in			Due after			Due after
	one year			one through			five through			Due after
	or less			five years			ten years			ten years			Total
		(Dollars in Thousands)
HELD TO MATURITY
Amortized cost	$	-		$	-		$	416		$	151,012		$	151,428
Fair value		-			-			430			151,851			152,281
Weighted average yield		-	%		-	%		1.62	%		1.31	%		1.31	%

XML

CONSOLIDATED STATEMENT OF STOCKHOLDERS' EQUITY (Parenthetical)	3 Months Ended
	Sep. 30, 2015 $ / shares shares
CONSOLIDATED STATEMENT OF CHANGES IN STOCKHOLDERS' EQUITY [Abstract]
Purchase of treasury stock, shares | shares	1,590
Cash dividends declared, per share	$ 0.04

XML

CONSOLIDATED BALANCE SHEET (Parenthetical) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Assets
Investment securities available-for-sale, amortized cost	$ 89,238	$ 66,968
Investment securities held-to-maturity, fair value	25,592	36,979
Mortgage-backed securities held-to-maturity, fair value	152,281	163,265
Net loans receivable, allowance for loan losses	$ 323	$ 304
Stockholders' equity:
Preferred stock, shares authorized	5,000,000	5,000,000
Preferred stock, no par value per share	$ 0.00	$ 0.00
Preferred stock, shares issued	0	0
Common stock, shares authorized	10,000,000	10,000,000
Common stock, par value per share	$ 0.01	$ 0.01
Common stock, shares issued	3,805,636	3,805,636
Common stock, shares outstanding	2,039,129	2,040,719
Treasury stock, shares at cost	1,766,507	1,764,917

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES

3 Months Ended

Sep. 30, 2015

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES

9.LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES

The following table summarizes the primary segments of the loan portfolio as of September 30, 2015 and June 30, 2015.

		September 30, 2015						June 30, 2015
	Total Loans			Individually evaluated for impairment		Collectively evaluated for impairment		Total Loans			Individually evaluated for impairment		Collectively evaluated for impairment
		(Dollars in Thousands)
First mortgage loans:
1 – 4 family dwellings	$	33,733	$		-	$	33,733	$	28,620		$	-	$	28,620
Construction		4,935			-		4,935		3,032			-		3,032
Land acquisition & development		763			-		763		653			-		653
Multi-family dwellings		5,992			-		5,992		6,084			-		6,084
Commercial		3,110			-		3,110		3,395			49		3,346
Consumer Loans
Home equity		811			-		811		1,175			-		1,175
Home equity lines of credit		1,967			-		1,967		1,917			-		1,917
Other		170			-		170		211			-		211
Commercial Loans		1,206			-		1,206		1,251			-		1,251
Obligations (other than securities and leases) of states and political subdivisons		-			-		-		-			-		-
	$	52,687	$		-	$	52,687	$	46,338		$	49	$	46,289
Plus: Deferred loan costs		179							129
Allowance for loan losses		(323	)						(304	)
Total	$	52,543						$	46,163

Impaired loans are loans for which it is probable the Company will not be able to collect all amounts due according to the contractual terms of the loan agreement.  The following loan categories are collectively evaluated for impairment.  First mortgage loans:  1 – 4 family dwellings and all consumer loan categories (home equity, home equity lines of credit, and other).  The following loan categories are individually evaluated for impairment.  First mortgage loans:  construction, land acquisition and development, multi-family dwellings, and commercial.  The Company evaluates commercial loans not secured by real property individually for impairment.

The definition of “impaired loans” is not the same as the definition of “nonaccrual loans,” although the two categories overlap.  The Company may choose to place a loan on nonaccrual status due to payment delinquency or uncertain collectability, while not classifying the loan as impaired if the loan is not a commercial or commercial real estate loan.  Factors considered by management in determining impairment include payment status and collateral value. The amount of impairment for these types of impaired loans is determined by the difference between the present value of the expected cash flows related to the loan, using the original interest rate, and its recorded value, or as a practical expedient in the case of collateralized loans, the difference between the fair value of the collateral and the recorded amount of the loans.  When foreclosure is probable, impairment is measured based on the fair value of the collateral.

Loans that experience insignificant payment delays, which are defined as 90 days or less, generally are not classified as impaired.  Management determines the significance of payment delays on a case-by-case basis taking into consideration all circumstances surrounding the loan and the borrower, includingthe length of the delay, the borrower's prior payment record, and the amount of shortfall in relation to the principal and interest owed.

The following tablesare a summary of the loans considered to be impaired as of September 30, 2015 and June 30, 2015, and the related interest income recognized for the threemonths ended September 30, 2015 and September 30, 2014:

	September 30,		June 30,
	2015		2015
		(Dollars in Thousands)
Impaired loans with an allocated allowance:
Home equity lines of credit	$	-	$	-
Impaired loans without an allocated allowance:
Commercial real estate loans		-		49
Total impaired loans	$	-	$	49
Allocated allowance on impaired loans:
Home equity lines of credit	$	-	$	-
Total	$	-	$	-

		Three Months Ended
	September 30,		September 30,
	2015		2014
		(Dollars in Thousands)
Average impaired loans
Construction loans	$	-	$	-
Land acquisition & development loans		-		-
Commercial real estate loans		48		49
Home equity lines of credit		-		150
Total	$	48	$	199
Income recognized on impaired loans
Construction loans	$	-	$	-
Land acquisition & development loans		-		-
Commercial real estate loans		1		-
Home equity lines of credit		-		1
Total	$	1	$	1

Total nonaccrual loans as of September 30, 2015 and June 30, 2015and the related interest income recognized for the threemonths ended September 30, 2015 and September 30, 2014 are as follows:

	September 30,		June 30,
	2015		2015
		(Dollars in Thousands)
Principal outstanding
1 – 4 family dwellings	$	259	$	260
Construction		-		-
Land acquisition & development		-		-
Commercial real estate		-		49
Home equity lines of credit		-		-
Total	$	259	$	309

		Three Months Ended
	September 30,		September 30,
	2015		2014
		(Dollars in Thousands)
Average nonaccrual loans
1 – 4 family dwellings	$	260	$	366
Construction		-		-
Land acquisition & development		-		-
Commercial real estate		48		49
Home equity lines of credit		-		150
Total	$	308	$	565
Income that would have been recognized	$	5	$	8
Interest income recognized	$	6	$	9
Interest income foregone	$	-	$	3

The Company's loan portfolio also includes troubled debt restructurings (TDRs), where economic concessions have been granted to borrowers who have experienced or are expected to experience financial difficulties.  These concessions typically result from the Company's loss mitigation activities and could include reductions in the interest rate, payment extensions, forgiveness of principal, forbearance or other actions.  Certain TDRs are classified as nonperforming at the time of restructure and may only be returned to performing status after considering the borrower's sustained repayment performance for a reasonable period, generally six months.

During the three months ended September 30, 2015, there were no trouble debt restructurings, and no trouble debt restructurings that subsequently defaulted.  One previously modified TDR, secured by commercial real estate, was paid off in full during the three months ended September 30, 2015.

The following table includes the recorded investment and number of modifications for modified loans, as of September 30, 2014.  The Company reports the recorded investment in the loans prior to a modification and also the recorded investment in the loans after the loans were restructured.

	For the Three Months Ended
	September 30, 2014
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in Thousands)
Troubled debt restructurings:
Commercial real estate	1	$	49	$	49
Troubled debt restructurings that subsequently defaulted:	-	$	-	$	-

When the Company modifies a loan, management evaluates any possible impairment based on the present value of expected future cash flows, discounted at the contractual interest rate of the original loan agreement, except when the sole (remaining) source of repayment for the loan is the operation or liquidation of the collateral.  In these cases, management uses the current fair value of the collateral, less selling costs, instead of discounted cash flows.  If management determines that the value of the modified loan is less than the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount), impairment is recognized by segment or class of loan, as applicable, through an allowance estimate or a charge-off to the allowance.  Segment and class status is determined by the loan's classification at origination.

The allowance for loan losses is established through provisions for loan losses charged against income.  Loans deemed to be uncollectible are charged against the allowance account.  Subsequent recoveries, if any, are credited to the allowance.  The allowance is maintained at a level believed adequate by management to absorb estimated potential loan losses.  Management's determination of the adequacy of the allowance is based on periodic evaluations of the loan portfolio considering past experience, current economic conditions, composition of the loan portfolio and other relevant factors.  This evaluation is inherently subjective, as it requires material estimates that may be susceptible to significant change.

Effective December 13, 2006, the FDIC, in conjunction with the other federal banking agencies adopted a Revised Interagency Policy Statement on the Allowance for Loan and Lease Losses (“ALLL”). Therevised policy statement revised and replaced the banking agencies' 1993 policy statement on the ALLL.  The revised policy statement provides that an institution must maintain an ALLL at a level that is appropriate to cover estimated credit losses on individually evaluated loans determined to be impaired, as well as estimated credit losses inherent in the remainder of the loan and lease portfolio.  The banking agencies also revised the policy to ensure consistency with generally accepted accounting principles (“GAAP”).  The revised policy statement updates the previous guidance that describes the responsibilities of the board of directors, management, and bank examiners regarding the ALLL, factors to be considered in the estimation of the ALLL, and the objectives and elements of an effective loan review system.

Federal regulations require that each insured savings institution classify its assets on a regular basis.  In addition, in connection with examinations of insured institutions, federal examiners have authority to identify problem assets and, if appropriate, classify them.  There are three classifications for problem assets: "substandard", "doubtful" and "loss".  Substandard assets have one or more defined weaknesses and are characterized by the distinct possibility that the insured institution will sustain some loss if the deficiencies are not corrected.  Doubtful assets have the weaknesses of those classified as substandard with the added characteristic that the weaknesses make collection or liquidation in full on the basis of currently existing facts, conditions and values questionable, and there is a high possibility of loss.  An asset classified as loss is considered uncollectible and of such little value that continuance as an asset of the institution is not warranted.  Another category designated "asset watch" is also utilized by the Bank for assets which do notcurrently expose an insured institution to a sufficient degree of risk to warrant classification as substandard, doubtful or loss.  Assets classified as substandard or doubtful require the institution to establish generalallowances for loan losses.  If an asset or portion thereof is classified as loss, the insured institution must either establish specific allowances for loan losses in the amount of 100% of the portion of the asset classified loss, or charge-off such amount.  General loss allowances established to cover possible lossesrelated to assets classified substandard or doubtful may be included in determining an institution's regulatory capital, while specific valuation allowances for loan losses do not qualify as regulatory capital.

The Company's general policy is to internally classify its assets on a regular basis and establish prudent general valuation allowances that are adequate to absorb losses that have not been identified but that are inherent in the loan portfolio.  The Company maintains general valuation allowances that it believes are adequate to absorb losses in its loan portfolio that are not clearly attributable to specific loans.  The Company's general valuation allowances are within the following general ranges: (1) 0% to 5% of assets subject to special mention; (2) 1.00% to 100% of assets classified substandard; and (3) 50% to 100% of assets classified doubtful.  Any loan classified as loss is charged-off.  To further monitor and assess the risk characteristics of the loan portfolio, loan delinquencies are reviewed to consider any developing problem loans.  Based upon the procedures in place, considering the Company's past charge-offs and recoveries and assessing the current risk elements in the portfolio, management believes the allowance for loan losses at September 30, 2015, is adequate.

The following tables present the classes of the loan portfolio summarized by the aging categories of performing loans and nonaccrual loans as of September 30, 2015 and June 30, 2015:

	Current		30 – 59 Days Past Due			60 – 89 Days Past Due			90 Days + Past Due Accruing		90 Days + Past Due Non-accrual		Total Past Due		Total Loans
		(Dollars in Thousands)
September 30, 2015
First mortgage loans:
1 – 4 family dwellings	$	33,406	$	68	$		-	$		-	$	259	$	327	$	33,733
Construction		4,935		-			-			-		-		-		4,935
Land acquisition & development		763		-			-			-		-		-		763
Multi-family dwellings		5,992		-			-			-		-		-		5,992
Commercial		3,110		-			-			-		-		-	﷐	3,110
Consumer Loans:
Home equity		811		-			-			-		-		-		811
Home equity lines of credit		1,967		-			-			-		-		-		1,967
Other		170		-			-			-		-		-		170
Commercial Loans		1,206		-			-			-		-		-		1,206
Obligations (other than securities and leases) of states and political subdivisions		-		-			-			-		-		-		-
	$	52,360	$	68	$		-	$		-	$	259	$	327		52,687
Plus: Deferred loan fees																179
Allowance for loan losses																(323	)
Net Loans Receivable															$	52,543

	Current		30 – 59 Days Past Due		60 – 89 Days Past Due			90 Days + Past Due Accruing		90 Days + Past Due Non-accrual		Total Past Due		Total Loans
		(Dollars in Thousands)
June 30, 2015
First mortgage loans:
1 – 4 family dwellings	$	28,327	$	-	$	33	$		-	$	260	$	293	$	28,620
Construction		3,032		-		-			-		-		-		3,032
Land acquisition & development		653		-		-			-		-		-		653
Multi-family dwellings		6,084		-		-			-		-		-		6,084
Commercial		3,335		11		-			-		49		60		3,395
Consumer Loans
Home equity		1,175		-		-			-		-		-		1,175
Home equity lines of credit		1,917		-		-			-		-		-		1,917
Other		211		-		-			-		-		-		211
Commercial Loans		1,251		-		-			-		-		-		1,251
Obligations (other than securities and leases) of states and political subdivisions		-		-		-			-		-		-		-
	$	45,985	$	11	$	33	$		-	$	309	$	353		46,338
Plus: Deferred loan fees															129
Allowance for loan losses															(304	)
Net Loans Receivable														$	46,163

Credit quality information

The following tables represent credit exposure by internally assigned grades for the period ended September 30, 2015.  The grading system analysis estimates the capability of the borrower to repay the contractual obligations of the loan agreements as scheduled or not at all.  The Company's internal credit risk grading system is based on experiences with similarly graded loans.

The Company's internally assigned grades are as follows:

Pass – loans which are protected by the current net worth and paying capacity of the obligor or by the value of the underlying collateral.

Special Mention – loans where a potential weakness or risk exists, which could cause a more serious problem if not corrected.

Substandard – loans that have a well-defined weakness based on objective evidence and can be characterized by the distinct possibility that the Company will sustain some loss if the deficiencies are not corrected.

Doubtful – loans classified as doubtful have all the weaknesses inherent in a substandard loan.  In addition, these weaknesses make collection or liquidation in full highly questionable and improbable, based on existing circumstances.

Loss – loans classified as loss are considered uncollectible, or of such value that continuance as a loan is not warranted.

The primary credit quality indicator used by management in the 1 – 4 family and consumer loan portfolios is the performance status of the loans.  Payment activity is reviewed by Management on a monthly basis to determine how loans are performing.  Loans are considered to be non-performing when they become 90 days delinquent, have a history of delinquency, or have other inherent characteristics which Management deems to be weaknesses.

The following tables presents the Company's internally classified construction, land acquisition and development, multi-family residential, commercial real estate and commercial (not secured by real estate) loans at September 30, 2015 and June 30, 2015.

		September 30, 2015
	Construction		Land Acquisition & Development Loans		Multi-family Residential		Commercial Real Estate		Commercial			Obligations (other than securities and leases) of States and Political Subdivisions
	(Dollars in Thousands)
Pass	$	4,935	$	559	$	5,992	$	3,110	$	1,206	$		-
Special Mention		-		-		-		-		-			-
Substandard		-		204		-		-		-			-
Doubtful		-		-		-		-		-			-
Ending Balance	$	4,935	$	763	$	5,992	$	3,110	$	1,206	$		-

		June 30, 2015
	Construction		Land Acquisition & Development Loans		Multi-family Residential		Commercial Real Estate		Commercial			Obligations (other than securities and leases) of States and Political Subdivisions
	(Dollars in Thousands)
Pass	$	3,032	$	445	$	6,084	$	3,346	$	1,251	$		-
Special Mention		-		-		-		-		-			-
Substandard		-		208		-		49		-			-
Doubtful		-		-		-		-		-			-
Ending Balance	$	3,032	$	653	$	6,084	$	3,395	$	1,251	$		-

The following table presents performing and non-performing 1 – 4 family residential and consumer loans based on payment activity for the periods ended September 30, 2015 and June 30, 2015. 

	September 30, 2015
	1 – 4 Family		Consumer
		(Dollars in Thousands)
Performing	$	33,474	$	2,948
Non-performing		259		-
Total	$	33,733	$	2,948

	June 30, 2015
	1 – 4 Family		Consumer
		(Dollars in Thousands)
Performing	$	28,360	$	3,303
Non-performing		260		-
Total	$	28,620	$	3,303

The Company determines its allowance for loan losses in accordance with generally accepted accounting principles.  The Company uses a systematic methodology as required by Financial Reporting Release No. 28 and the various Federal Financial Institutions Examination Council guidelines.  The Company also endeavors to adhere to SEC Staff Accounting Bulletin No. 102 in connection with loan loss allowance methodology and documentation issues.

Our methodology used to determine the allocated portion of the allowance is as follows.  For groups of homogenous loans, we apply a loss rate to the groups' aggregate balance.  Our group loss rate reflects our historical loss experience.  We may adjust these group rates to compensate for changes in environmental factors; but our adjustments have not been frequent due to a relatively stable charge-off experience.  The Company also monitors industry loss experience on similar loan portfolio segments.  We then identify loans for individual evaluation under ASC Topic 310.  If the individually identified loans are performing, we apply a segment specific loss rate adjusted for relevant environmental factors, if necessary, for those loans reviewed individually and considered individually impaired, we use one of the three methods for measuring impairment mandated by ASC Topic 310.  Generally the fair value of collateral is used since our impaired loans are generally real estate based.  In connection with the fair value of collateral measurement, the Company generally uses an independent appraisal and determines costs to sell.  The Company's appraisals for commercial income based loans, such as multi-family and commercial real estate loans, assess value based upon the operating cash flows of the business as opposed to merely “as built” values.  The Company then validates the reasonableness of our calculated allowances by: (1) reviewing trends in loan volume, delinquencies, restructurings and concentrations; (2) reviewing prior period (historical) charge-offs and recoveries; and (3) presenting the results of this process, quarterly, to the Asset Classification Committee and the Savings Bank's Board of Directors.  We then tabulate, format and summarize the current loan loss allowance balance for financial and regulatory reporting purposes.

The Company had no unallocated loss allowance balance at September 30, 2015.

The allowance for loan losses represents the amount which management estimates is adequate to provide for probable losses inherent in its loan portfolio.  The allowance method is used in providing for loan losses.  Accordingly, all loan losses are charged to the allowance, and all recoveries are credited to it. The allowance for loan losses is established through a provision for loan losses charged to operations. The provision for loan losses is based on management's periodic evaluation of individual loans, economic factors, past loan loss experience, changes in the composition and volume of the portfolio, and other relevant factors. The estimates used in determining the adequacy of the allowance for loan losses, including the amounts and timing of future cash flows expected on impaired loans, are particularly susceptible to changes in the near term.

The following tables summarize the primary segments of the allowance for loan losses (“ALLL”), segregated into the amount required for loans individually evaluated for impairment and the amount required for loans collectively evaluated for impairment as of September 30, 2015 and 2014.  Activity in the allowance is presented for the three months ended September 30, 2015 and 2014.

		As of September 30, 2015
		First Mortgage Loans
	1 – 4 Family		Construction			Land Acquisition & Development		Multi-family		Commercial			Consumer Loans			Commercial Loans		Total
		(Dollars in Thousands)
Beginning ALLL Balance at June 30,2015	$	125	$	63	$		9	$	30	$	34		$	37	$		6	$	304
Charge-offs		-		-			-		-		-			-			-		-
Recoveries		-		-			-		-		-			-			-		-
Provisions		18		9			-		-		(3	)		(5	)		-		19
Ending ALLL Balance at September 30, 2015	$	143	$	72	$		9	$	30	$	31		$	32	$		6	$	323
Individually evaluated for impairment	$	-	$	-	$		-	$	-	$	-		$	-	$		-	$	-
Collectively evaluated for impairment		143		72			9		30		31			32			6		323
	$	143	$	72	$		9	$	30	$	31		$	32	$		6	$	323

		As of September 30, 2014
		First Mortgage Loans
	1 – 4 Family			Construction		Land Acquisition & Development		Multi-family			Commercial			Consumer Loans			Commercial Loans		Total
		(Dollars in Thousands)
Beginning ALLL Balance at June 30,2014	$	103		$	14	$	5	$	12		$	45		$	47	$		8	$	234
Charge-offs		-			-		-		-			-			-			-		-
Recoveries		-			-		-		-			-			-			-		-
Provisions		(28	)		7		5		(1	)		(2	)		22			-		3
Ending ALLL Balance  at September 30, 2014	$	75		$	21	$	10	$	11		$	43		$	69	$		8	$	237
Individually evaluated for impairment	$	-		$	-	$	-	$	-		$	-		$	37	$		-	$	37
Collectively evaluated for impairment		75			21		10		11			43			32			8		200
	$	75		$	21	$	10	$	11		$	43		$	69	$		8	$	237

During the three months ended September30, 2015, the ALLL associated with the 1 – 4 family and construction loan portfolios increased by $18 thousand and $9 thousand, respectively.  The primary reason for the increases in the ALLL associated with thesesegments were the increases in associated loan balances.  The ALLL for consumer loans and commercial real estate loans decreased $5 thousand and $3 thousand, respectively.The decrease in the ALLL associated with consumer loans was primarily due to lower loan balances within this segment, while the decrease in the ALLL associated with commercial real estate loans was primarily due to the payoff of one non-performing loan in this segment. The decrease in the ALLL associated with the commercial (non-real estate) loan segment was primarily related to the lower loan balances within this segment. 

During the fiscal year ended June 30, 2015, the Company also increased its ALLL reserve factors, due to increases in associated loan balances and qualitative factors throughout fiscal 2015, for the following loan segments:

Loan Segment	09/30/2015 Factor			09/30/2014 Factor
1 – 4 family		0.35	%		0.25	%
Construction:
1 – 4 family		0.75	%		0.25	%
5+ family		1.00	%		0.50	%

During the three months ended September 30, 2014, the ALLL associated with 1-4 family permanent loans decreased $28 thousand, while the ALLL associated with consumer loans increased $22 thousand.  The decrease in the ALLL associated with the 1-4 family permanent loan segment was primarily due to the payoff of one non-performing loan within this segment.  The increase in the ALLL associated with the consumer loan segment was primarily due to an increase in the ALLL associated with one non-performing home equity line of credit within this segment.

XML

Document and Entity Information - shares	3 Months Ended
	Sep. 30, 2015	Nov. 09, 2015
Document and Entity Information [Abstract]
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Sep. 30, 2015
Entity Registrant Name	WVS FINANCIAL CORP
Entity Central Index Key	0000910679
Current Fiscal Year End Date	--06-30
Document Fiscal Period Focus	Q1
Document Fiscal Year Focus	2016
Entity Filer Category	Smaller Reporting Company
Entity Common Stock, Shares Outstanding		2,039,129

XML

FEDERAL HOME LOAN BANK (FHLB) ADVANCES

3 Months Ended

Sep. 30, 2015

FEDERAL HOME LOAN BANK (FHLB) ADVANCES [Abstract]

FEDERAL HOME LOAN BANK (FHLB) ADVANCES

10.FEDERAL HOME LOAN BANK (FHLB) ADVANCES

The following table presents contractual maturities of FHLB long-term advances as of September 30, 2015 and June 30, 2015 

			Weighted-	Stated interest
	Maturity range		average	rate range			September 30,		June 30,
Description	from	to	interest rate(5)	from	to		2015		2015
							(Dollars in Thousands)
Convertible	06/22/16	07/27/17	4.44%	4.26%	5.16%	$		12,500	$	12,500
Adjustable	05/06/16	09/01/17	0.32%	0.30%	0.39%			105,305		105,305
Total						$		117,805	$	117,805

[5] As of September 30, 2015.

Maturities of FHLB long-term advances at September 30, 2015, are summarized as follows:

				Weighted-
	Maturing During			Average
	Fiscal Year Ended			Interest
	June 30:		Amount	Rate
(Dollars in Thousands)
	2016	$	101,696	0.43	%
	2017		-	-
	2018		16,109	2.78
	2019		-	-
	2020 and thereafter		-	-
	Total	$	117,805	0.76

The terms of the convertible advances reset to the three-month London Interbank Offered Rate (“LIBOR”) and have various spreads and call dates of three months.  The FHLB has the right to convert from a fixed rate to a predetermined floating rate on its conversion date or quarterly thereafter.  Should the advance be converted, the Company has the right to pay off the advance without penalty.  The adjustable rate advances adjust either monthly or quarterly, based on the one-month or three-month LIBOR index, and have various spreads to the LIBOR index.  The spreads to the applicable LIBOR index range from 0.05% to 0.16%.  The adjustable rate advances are not convertible or callable. The FHLB advances are secured by the Company's FHLB stock, mortgage-backed and investment securities, and loans, and are subject to substantial prepayment penalties.

The Company also utilized revolving and short-term FHLB advances.  Short-term FHLB advances generally mature within 90 days, while revolving FHLB advances may be repaid by the Company without penalty. The following table presents information regarding such advances as of September 30, 2015 and June 30, 2015:

	September 30,			June 30,
	2015			2015
	(Dollars in Thousands)
Ending balance	$	38,392		$	37,830
Average balance		31,675			23,496
Maximum month-end balance		38,392			37,830
Average interest rate		0.35	%		0.31	%
Weighted-average rate		0.35	%		0.32	%

At September 30, 2015, the Company had remaining borrowing capacity with the FHLB of approximately $22.6 million.

The FHLB advances are secured by the Company's FHLB stock, loans, and mortgage-backed and investment securities held in safekeeping at the FHLB.  FHLB advances are subject to substantial prepayment penalties.

XML

CONSOLIDATED STATEMENT OF INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
INTEREST AND DIVIDEND INCOME:
Loans, including fees	$ 522	$ 373
Investment securities - taxable	507	295
Mortgage-backed securities	514	796
Certificates of deposit	2	2
FHLB Stock	92	54
Total interest and dividend income	1,637	1,520
INTEREST EXPENSE:
Deposits	52	59
Federal Home Loan Bank advances - long-term - fixed rate	142	142
Federal Home Loan Bank advances - long-term - variable rate	83	70
Federal Home Loan Bank advances - short-term	28	$ 17
Other short-term borrowings	6
Total interest expense	311	$ 288
NET INTEREST INCOME	1,326	1,232
PROVISION FOR LOAN LOSSES	19	3
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES	1,307	1,229
NON-INTEREST INCOME:
Service charges on deposits	43	41
Earnings on Bank Owned Life Insurance	34	35
Other	62	62
Total non-interest income	139	138
NON-INTEREST EXPENSE:
Salaries and employee benefits	544	533
Occupancy and equipment	84	77
Data processing	59	59
Correspondent bank service charges	9	10
Federal deposit insurance premium	50	46
Other	197	190
Total non-interest expense	943	915
INCOME BEFORE INCOME TAXES	503	452
INCOME TAX EXPENSE	192	153
NET INCOME	$ 311	$ 299
EARNINGS PER SHARE:
Basic	$ 0.16	$ 0.15
Diluted	$ 0.16	$ 0.15
AVERAGE SHARES OUTSTANDING:
Basic	1,909,262	1,959,381
Diluted	1,909,262	1,959,381

XML

STOCK BASED COMPENSATION DISCLOSURE

3 Months Ended

Sep. 30, 2015

STOCK BASED COMPENSATION DISCLOSURE [Abstract]

STOCK BASED COMPENSATION DISCLOSURE

4.STOCK BASED COMPENSATION DISCLOSURE

The Company's 2008 Stock Incentive Plan (the “Plan”), which was approved by shareholders in October 2008, permits the grant of stock options or restricted shares to its directors and employees for up to 152,000 shares (up to 38,000 restricted shares may be issued).  Option awards are generally granted with an exercise price equal to the market price of the Company's stock at the date of grant; those option awards generally vest over five years of continuous service and have ten-year contractual terms.

During the three month periods ended September 30, 2015and 2014, the Company recorded no compensation expense related to our share-based compensation awards. As of September 30, 2015, there was no unrecognized compensation cost related to unvested share-based compensation awards granted in fiscal 2009.

The Company had no non-vested stock options outstanding at September 30,2015, and 2014.There were no stock options exercised or issued during the three monthsended September 30, 2015 and 2014.

XML

EARNINGS PER SHARE

3 Months Ended

Sep. 30, 2015

EARNINGS PER SHARE [Abstract]

EARNINGS PER SHARE

3.EARNINGS PER SHARE

The following table sets forth the computation of the weighted-average common shares used to calculate basic and diluted earnings per share.

	Three Months Ended September 30,
	2015			2014
Weighted average common shares issued		3,805,636			3,805,636
Average treasury stock shares		(1,766,351	)		(1,754,526	)
Average unallocated ESOP shares		(130,023	)		(91,729	)
Weighted average common shares and common stock equivalents used to calculate basic earnings per share		1,909,262			1,959,381
Additional common stock equivalents (stock options) used to calculate diluted earnings per share		-			-
Weighted average common shares and common stock equivalents   used to calculate diluted earnings per share		1,909,262			1,959,381

There are no convertible securities that would affect the numerator in calculating basic and diluted earnings per share; therefore, net income as presented on the Consolidated Statement of Income is used.

At September 30, 2015, there were 114,519 options outstanding with an exercise price of $16.20 which were anti-dilutive for the threemonth period.  At September 30, 2014there were 114,519options outstanding with an exercise price of$16.20 which were anti-dilutive for the three month period. 

XML

INVESTMENT SECURITIES (Tables)

3 Months Ended

Sep. 30, 2015

INVESTMENT SECURITIES [Abstract]

Schedule of Amortized Cost and Fair Values of Investments

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
September 30, 2015
AVAILABLE FOR SALE
Corporate debt securities	$	83,791	$	61	$	(102	)	$	83,750
Foreign debt securities [1]		4,745		3		(1	)		4,747
Obligations of states and political
subdivisions		702		-		-			702
Total	$	89,238	$	64	$	(103	)	$	89,199

[1] U.S. dollar denominated investment-grade corporate bonds of large foreign issuers.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
September 30, 2015
HELD TO MATURITY
U.S. government agency securities	$	16,219	$	38	$	(1	)	$	16,256
Corporate debt securities		3,549		306		-			3,855
Obligations of states and political
subdivisions		5,355		126		-			5,481
Total	$	25,123	$	470	$	(1	)	$	25,592

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
June 30, 2015
AVAILABLE FOR SALE
Corporate debt securities	$	60,968	$	63	$	(93	)	$	60,938
Foreign debt securities [2]		5,298		-		(17	)		5,281
Obligations of states and political
subdivisions		702		-		(5	)		697
Total	$	66,968	$	63	$	(115	)	$	66,916

[2] U.S. dollar denominated investment-grade corporate bonds of large foreign issuers.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
June 30, 2015
HELD TO MATURITY
U.S. government agency securities	$	27,395	$	5	$	(94	)	$	27,306
Corporate debt securities		3,868		371		-			4,239
Obligations of states and political
subdivisions		5,355		79		-			5,434
Total	$	36,618	$	455	$	(94	)	$	36,979

Schedule of Investments by Contractual Maturity

	Due in			Due after			Due after			Due after			Due after
	one year			one through			two through			three through			five through			Due after
	or less			two years			three years			five years			ten years			ten years			Total
		(Dollars in Thousands)
AVAILABLE FOR SALE
Amortized cost	$	32,638		$	55,607		$	-		$	993		$	-		$	-		$	89,238
Fair value		32,620			55,595			-			985			-			-			89,199
Weighted average yield		1.41	%		1.51	%		-	%		1.68	%		-	%		-	%		1.47	%
HELD TO MATURITY
Amortized cost	$	524		$	1,471		$	1,809		$	1,605		$	14,088		$	5,626		$	25,123
Fair value		548			1,499			1,734			1,734			14,216			5,640			25,592
Weighted average yield		6.15	%		3.46	%		5.29	%		4.96	%		1.82	%		1.75	%		2.44	%

XML

OTHER BORROWINGS

3 Months Ended

Sep. 30, 2015

OTHER BORROWINGS [Abstract]

OTHER BORROWINGS

11.OTHER BORROWINGS

Other borrowings include securities sold under agreements to repurchase with securities brokers (“repurchase agreements”).  These borrowings generally mature within 1 to 90 days from the transaction date and require a collateral pledge.  Securities sold under agreements to repurchase are stated at the amount of cash received in connection with the transaction. We monitor collateral levels on a continuous basis. We may be required to provide additional collateral based on the fair value of the underlying securities. Securities pledged as collateral under repurchase agreements are maintained with our safekeeping agents.

The following table presents information regarding other borrowings as of September 30, 2015 and June 30, 2015:

	September 30,			June 30,
	2015			2015
	(Dollars in Thousands)
Other short-term borrowings:
Ending balance	$	7,950		$	-
Average balance		6,317			1,378
Maximum month-end balance		9,700			9,464
Average interest rate		0.38	%		0.36	%
Weighted-average rate		0.41	%		-	%

The remaining contractual maturity of repurchase agreements in the consolidated balance sheet as of September30, 2015 is presented in the following table.

	Remaining Contractual Maturity of the Repurchase Agreements
	Overnight and Continuous		Up to 30 Days		30 – 90    Days		Greater than   90 Days		Total
September 30, 2015
Repurchase agreements:	$	-	$	7,950	$	-	$	-	$	7,950
Total borrowings	$	-	$	7,950	$	-	$	-	$	7,950
Gross amount of recognized liabilities for repurchase agreements									$	7,950
Amounts related to agreements not included in offsetting disclosures above									$	-

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS

3 Months Ended

Sep. 30, 2015

ACCUMULATED OTHER COMPREHENSIVE LOSS

ACCUMULATED OTHER COMPREHENSIVE LOSS

7.ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables present the changes in accumulated other comprehensive loss by component, for the three months ended September 30, 2015 and 2014.

	Three Months Ended September 30, 2015
	(Dollars in Thousands – net of tax)
	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Held-to-Maturity Securities			Total
Beginning Balance – June 30, 2015	$	(35	)	$	(426	)	$	(461	)
Other comprehensive income (loss) before reclassifications		8			36			44
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-
Net current-period other comprehensive income (loss)		8			36			44
Ending Balance – September 30, 2015	$	(27	)	$	(390	)	$	(417	)

	Three Months Ended September 30, 2014
	(Dollars in Thousands – net of tax)
	Unrealized Gains and Losses on Available-for-Sale Securities			Unrealized Gains and Losses on Held-to-Maturity Securities			Total
Beginning Balance – June 30, 2014	$	130		$	(550	)	$	(420	)
Other comprehensive income (loss) before reclassifications		(41	)		40			(1	)
Amounts reclassified from accumulated other comprehensive income (loss)		-			-			-
Net current-period other comprehensive income (loss)		(41	)		40			(1	)
Ending Balance – September 30, 2014	$	89		$	(510	)	$	(421	)

There were no amounts reclassified out of accumulated other comprehensive income for the three months ended September 30, 2015 and 2014.

XML

FAIR VALUE MEASUREMENTS (Schedule of Significant Observable Inputs) (Details) - USD ($) $ in Thousands	3 Months Ended	12 Months Ended
	Sep. 30, 2015	Jun. 30, 2015
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured on non-recurring basis		$ 49
Impaired Loans [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Assets measured on non-recurring basis		$ 49
Significant Unobservable Input Value	0.00%	0.00%
Impaired Loans [Member] | Minimum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input Value	1.00%
Impaired Loans [Member] | Maximum [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Significant Unobservable Input Value	15.00%

XML

INVESTMENT SECURITIES

3 Months Ended

Sep. 30, 2015

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

5.INVESTMENT SECURITIES

The amortized cost and fair values of investments are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
September 30, 2015
AVAILABLE FOR SALE
Corporate debt securities	$	83,791	$	61	$	(102	)	$	83,750
Foreign debt securities [1]		4,745		3		(1	)		4,747
Obligations of states and political
subdivisions		702		-		-			702
Total	$	89,238	$	64	$	(103	)	$	89,199

[1] U.S. dollar denominated investment-grade corporate bonds of large foreign issuers.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
September 30, 2015
HELD TO MATURITY
U.S. government agency securities	$	16,219	$	38	$	(1	)	$	16,256
Corporate debt securities		3,549		306		-			3,855
Obligations of states and political
subdivisions		5,355		126		-			5,481
Total	$	25,123	$	470	$	(1	)	$	25,592

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
June 30, 2015
AVAILABLE FOR SALE
Corporate debt securities	$	60,968	$	63	$	(93	)	$	60,938
Foreign debt securities [2]		5,298		-		(17	)		5,281
Obligations of states and political
subdivisions		702		-		(5	)		697
Total	$	66,968	$	63	$	(115	)	$	66,916

[2] U.S. dollar denominated investment-grade corporate bonds of large foreign issuers.

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
June 30, 2015
HELD TO MATURITY
U.S. government agency securities	$	27,395	$	5	$	(94	)	$	27,306
Corporate debt securities		3,868		371		-			4,239
Obligations of states and political
subdivisions		5,355		79		-			5,434
Total	$	36,618	$	455	$	(94	)	$	36,979

There were no sales of investment securities for the three months ended September 30, 2015 and 2014. 

The amortized cost and fair values of debt securities at September 30, 2015, by contractual maturity, are shown below.  Expected maturities may differ from the contractual maturities because issuers may have the right to call securities prior to their final maturities.

	Due in			Due after			Due after			Due after			Due after
	one year			one through			two through			three through			five through			Due after
	or less			two years			three years			five years			ten years			ten years			Total
		(Dollars in Thousands)
AVAILABLE FOR SALE
Amortized cost	$	32,638		$	55,607		$	-		$	993		$	-		$	-		$	89,238
Fair value		32,620			55,595			-			985			-			-			89,199
Weighted average yield		1.41	%		1.51	%		-	%		1.68	%		-	%		-	%		1.47	%
HELD TO MATURITY
Amortized cost	$	524		$	1,471		$	1,809		$	1,605		$	14,088		$	5,626		$	25,123
Fair value		548			1,499			1,734			1,734			14,216			5,640			25,592
Weighted average yield		6.15	%		3.46	%		5.29	%		4.96	%		1.82	%		1.75	%		2.44	%

At September 30, 2015, investment securities with amortized costs of $14.7 million and fair values of $14.8 million were pledged to secure borrowings with the Federal Home Loan Bank (FHLB) and broker repurchase agreements.  Of the securities pledged, $6.2 million of fair value was excess collateral at the FHLB. Excess collateral is maintained to support future borrowings and may be withdrawn by the Company at any time. 

At June 30, 2015, no investment securities were pledged to secure public deposits, broker repurchase agreements, or borrowings with the Federal Home Loan Bank.

XML

MORTGAGE-BACKED SECURITIES

3 Months Ended

Sep. 30, 2015

MORTGAGE-BACKED SECURITIES [Abstract]

MORTGAGE-BACKED SECURITIES

6.MORTGAGE-BACKED SECURITIES

Mortgage-backed securities ("MBS") include mortgage pass-through certificates ("PCs") and collateralized mortgage obligations ("CMOs").  With a pass-through security, investors own an undivided interest in the pool of mortgages that collateralize the PCs.  Principal and interest is passed through to the investor as it is generated by the mortgages underlying the pool.  PCs and CMOs may be insured or guaranteed by Freddie Mac ("FHLMC"), Fannie Mae ("FNMA") and the Government National Mortgage Association ("GNMA").  CMOs may also be privately issued with varying degrees of credit enhancements.  A CMO reallocates mortgage pool cash flow to a series of bonds (called traunches) with varying stated maturities, estimated average lives, coupon rates and prepayment characteristics. 

The Company's CMO portfolio is comprised of two segments: CMOs backed by U.S. Government Agencies (“Agency CMOs”) and CMOs backed by single-family whole loans not guaranteed by a U.S. Government Agency (“Private-Label CMOs”).

At September 30, 2015, the Company's Agency CMOs totaled $149.5 million as compared to $160.6 million at June 30, 2015.  The Company's private-label CMOs totaled $1.9million at September 30, 2015 as compared to $2.0 million at June 30, 2015.  The $11.2 million decrease in the CMO segment of our MBS portfolio was primarily due to repayments on our Agency and private-label CMOs which totaled $11.1 million.During the three months ended September 30, 2015, the Company received principal payments totaling $204thousand on its private-label CMOs.  At September 30, 2015, approximately $151.4 million or 100.0% (book value) of the Company's MBS portfolio, including CMOs, were comprised of adjustable or floating rate investments, as compared to $162.6 million or 100.0% at June 30, 2015.  Substantially all of the Company's floating rate MBS adjust monthly based upon changes in the one month LIBOR.  The Company has no investment in multi-family or commercial real estate based MBS.

Due to prepayments of the underlying loans, and the prepayment characteristics of the CMO traunches, the actual maturities of the Company's MBS are expected to be substantially less than the scheduled maturities.

The Company retains an independent third party to assist it in the determination of a fair value for its three private-label CMOs.  This valuation is meant to be a “Level Three” valuation as defined by ASC Topic 820, Fair Value Measurements and Disclosures.  The valuation does not represent the actual terms or prices at which any party could purchase the securities.  There is currently no active secondary market for private-label CMOs and there can be no assurance that any secondary market for private-label CMOs will develop.  The private-label CMO portfolio had threepreviously recorded other-than-temporary impairments at September 30, 2015.  During the three months ending September 30, 2015, the Company reversed $54 thousand of non-credit unrealized holding losses on its three private-label CMOs with other than temporary impairments ("OTTI") due to principal repayments.  During the three months ended September 30, 2015, the Company recorded no additional credit impairment charges on its private-label CMO portfolio.

The Company believes that the data and assumptions used to determine the fair values are reasonable.  The fair value calculations reflect relevant facts and market conditions.  Events and conditions occurring after the valuation date could have a material effect on the private-label CMO segment's fair value.

The following table sets forth information with respect to the Company's private-label CMO portfolio as of September 30, 2015.  At the time of purchase, all of our private-label CMOs were rated in the highest investment category by at least two ratings agencies.

		At September 30, 2015
		Rating					Book Value		Fair Value[3]		Life to Date Impairment Recorded in Earnings
Cusip #	Security Description	S&P		Moody's		Fitch	(in thousands)
126694CP1	CWHL SER 21 A11		N/A		Caa2	D	$	1,002	$	1,290	$	201
126694KF4	CWHL SER 24 A15		D		N/A	D		221		234		39
126694KF4	CWHL SER 24 A15		D		N/A	D		442		467		79
126694MP0	CWHL SER 26 1A5		D		N/A	D		210		224		36
							$	1,875	$	2,215	$	355

[3] Fair value estimate provided by the Company's independent third party valuation consultant.

The amortized cost and fair values of the Company's mortgage-backed securities are as follows:

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
		(Dollars in Thousands)
September 30, 2015
HELD TO MATURITY
Collateralized mortgage obligations:
Agency	$	149,553	$	1,224	$	(711	)	$	150,066
Private-label		1,875		340		-			2,215
Total	$	151,428	$	1,564	$	(711	)	$	152,281

			Gross		Gross
	Amortized		Unrealized		Unrealized			Fair
	Cost		Gains		Losses			Value
June 30, 2015		(Dollars in Thousands)
HELD TO MATURITY
Collateralized mortgage obligations:
Agency	$	160,614	$	1,130	$	(909	)	$	160,835
Private-label		2,025		405		-			2,430
Total	$	162,639	$	1,535	$	(909	)	$	163,265

The amortized cost and fair value of the Company's mortgage-backed securities at September 30, 2015, by contractual maturity, are shown below.  Expected maturities may differ from the contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Due in			Due after			Due after
	one year			one through			five through			Due after
	or less			five years			ten years			ten years			Total
		(Dollars in Thousands)
HELD TO MATURITY
Amortized cost	$	-		$	-		$	416		$	151,012		$	151,428
Fair value		-			-			430			151,851			152,281
Weighted average yield		-	%		-	%		1.62	%		1.31	%		1.31	%

At September 30, 2015,mortgage-backed securities with amortized costs of $149.6 million and fair values of $150.1 million were pledged to secure public deposits and borrowings with the Federal Home Loan Bank.  Of the securities pledged, $19.2 million of fair value was excess collateral.  At June 30, 2015 mortgage-backed securities with an amortized cost of $144.1 million and fair values of $144.2 million, were pledged to secure public deposits and borrowings with the Federal Home Loan Bank.  Of the securities pledged, $16.5 million of fair value was excess collateral.  Excess collateral is maintained to support future borrowings and may be withdrawn by the Company at any time.

XML

UNREALIZED LOSSES ON SECURITIES

3 Months Ended

Sep. 30, 2015

UNREALIZED LOSSES ON SECURITIES [Abstract]

UNREALIZED LOSSES ON SECURITIES

8.UNREALIZED LOSSES ON SECURITIES

The following tables show the Company's gross unrealized losses and fair value, aggregated by category and length of time that the individual securities have been in a continuous unrealized loss position, at September 30, 2015 and June 30, 2015.

	September 30, 2015
	Less Than Six Months					Six through Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses			Value		Losses
		(Dollars in Thousands)
Corporate debt securities	$	38,537	$	(73	)	$	8,115	$	(29	)	$	-	$	-		$	46,652	$	(102	)
Foreign Debt Securities (4)		1,574		(1	)		-		-			-		-			1,574		(1	)
U.S. government agency securities		499		(1	)		-		-			-		-			499		(1	)
Obligations of states and political subdivisions		702		-			-		-			-		-			702		-
Collateralized mortgage obligations:
Agency		5,788		(9	)		27,285		(480	)		19,768		(222	)		52,841		(711	)
Total	$	47,100	$	(84	)	$	35,400	$	(509	)	$	19,768	$	(222	)	$	102,268	$	(815	)

	June 30, 2015
	Less Than Six Months					Six through Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses			Value		Losses
		(Dollars in Thousands)
Corporate debt securities	$	28,284	$	(88	)	$	1,285	$	(5	)	$	-	$	-		$	29,569	$	(93	)
Foreign Debt Securities (4)		4,780		(16	)		501		(1	)		-		-			5,281		(17	)
U.S. government agency securities		21,318		(94	)		-		-			-		-			21,318		(94	)
Obligations of states and political subdivisions		697		(5	)		-		-			-		-			697		(5	)
Collateralized mortgage obligations:
Agency		22,504		(121	)		21,243		(663	)		16,092		(125	)		59,839		(909	)
Total	$	77,583	$	(324	)	$	23,029	$	(669	)	$	16,092	$	(125	)	$	116,704	$	(1,118	)

[3] 

Fair value estimate provided by the Company's independent third party valuation consultant.

[4]

U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.

For debt securities, impairment is considered to be other than temporary if an entity (1) intends to sell the security, (2) more likely than not will be required to sell the security before recovering its amortized cost basis, or (3) does not expect to recover the security's entire amortized cost basis (even if the entity does not intend to sell the security). In addition, impairment is considered to be other thantemporary if the present value of cash flows expected to be collected from the debt security is less than the amortized cost basis of the security (any such shortfall is referred to as a credit loss).

The Company evaluates outstanding available-for-sale and held-to-maturity securities in an unrealized loss position (i.e., impaired securities) for OTTI on a quarterly basis.  In doing so, the Company considers many factors including, but not limited to: the credit ratings assigned to the securities by the Nationally Recognized Statistical Rating Organizations ("NRSRO"); other indicators of the credit quality of the issuer; the strength of the provider of any guarantees; the length of time and extent that fair value has been less than amortized cost; and whether the Company has the intent to sell the security or more likely than not will be required to sell the security before its anticipated recovery.  In the case of its private label residential MBS, the Company also considers prepayment speeds, the historical and projectedperformance of the underlying loans and the credit support provided by the subordinate securities.  These evaluations are inherently subjective and consider a number of quantitative and qualitative factors.

The following table presents a roll-forward of the credit loss component of the amortized cost of mortgage-backed securities that we have written down for OTTI and the credit component of the loss that is recognized in earnings.  OTTI recognized in earnings for credit impaired mortgage-backed securities is presented as additions in twocomponents based upon whether the current period is the first time the mortgage-backed security wascredit-impaired (initial credit impairment) or is not the first time the mortgage-backed security was credit impaired (subsequent credit impairments).  The credit loss component is reduced if we sell, intend to sell or believe that we will be required to sell previously credit-impaired mortgage-backed securities.  Additionally, the credit loss component is reduced if we receivecash flows in excess of what we expected to receive over the remaining life of the credit impaired mortgage-backed securities, the security matures or is fully written down.

	Three Months Ended
	September 30,
	2015			2014
	(Dollars in Thousands)
Beginning balance	$	248		$	302
Initial credit impairment		-			-
Subsequent credit impairment		-			-
Reductions for amounts recognized in earnings due to intent or requirement to sell		-			-
Reductions for securities sold		-			-
Reduction for actual realized losses		(14	)		(10	)
Reduction for increase in cash flows expected to be collected		-			-
Ending Balance	$	234		$	292

During the three months ended September 30, 2015, the Company recorded no credit impairment charge and no non-credit unrealized holding loss to accumulated other comprehensive income.During the three months ended September 30, 2015, the Company accreted back into other comprehensive income $36 thousand (net of income tax effect of $18 thousand), based on principal repayments on private-label CMOs previously identified with OTTI.

In the case of its private-label residential CMOs that exhibit adverse risk characteristics, the Company employs models to determine the cash flows that it is likely to collect from the securities. These models consider borrower characteristics and the particular attributes of the loans underlying the securities, in conjunction with assumptions about future changes in home prices and interest rates, to predict the likelihood a loan will default and the impact on default frequency, loss severity and remaining credit enhancement. A significant input to these models is the forecast of future housing price changes for the relevant states and metropolitan statistical areas, which are based upon an assessment of the various housing markets. In general, since the ultimate receipt of contractual payments on these securities will depend upon the credit and prepayment performance of the underlying loans and, if needed, the credit enhancements for the senior securities owned by the Company, the Company uses these models toassess whether the credit enhancement associated with each security is sufficient to protect against likely losses of principal and interest on the underlying mortgage loans. The development of the modeling assumptions requires significant judgment.

In conjunction with our adoption of ASC Topic 820 effective June 30, 2009, the Company retained an independent third party to assist it with assessing its investments within the private-label CMO portfolio. The independent third party utilized certain assumptions for producing the cash flow analyses used in the OTTI assessment. Key assumptions would include interest rates, expected market participant spreads and discount rates, housing prices, projected future delinquency levels and assumed loss rates on any liquidated collateral.

The Company reviewed the independent third party's assumptions used in the September 30, 2015 OTTI process. Based on the results of this review, the Company deemed the independent third party's assumptions to be reasonable and adopted them. However, different assumptions could produce materially different results, which could impact the Company's conclusions as to whether an impairment is considered other-than-temporary and the magnitude of the credit loss.  Management believes that no additional private-label CMOs in the portfolio had an other-than-temporary impairment at September 30, 2015, keeping the total at three private-label CMOs with OTTI at September 30, 2015.

If the Company intends to sell an impaired debt security, or more likely than not will be required to sell the security before recovery of its amortized cost basis, the impairment is other-than-temporary and is recognized currently in earnings in an amount equal to the entire difference between fair value and amortized cost.  The Company does not anticipate selling its private-label CMO portfolio, nor does Management believe that the Company will be required to sell these securities before recovery of this amortized cost basis.

In instances in which the Company determines that a credit loss exists but the Company does not intend to sell the security and it is not more likely than not that the Company will be required to sell the security before the anticipated recovery of its remaining amortized cost basis, the OTTI is separated into (1)the amount of the total impairment related to the credit loss and (2)the amount of the total impairment related to all other factors (i.e., the noncredit portion). The amount of the total OTTI related to the credit loss is recognized in earnings and the amount of the total OTTI related to all other factors is recognized in accumulated other comprehensive loss. The total OTTI is presented in the Consolidated Statement of Income with an offset for the amount of the total OTTI that is recognized in accumulated other comprehensive loss. Absent the intent or requirement to sell a security, if a credit loss does not exist, any impairment is considered to be temporary.

Regardless of whether an OTTI is recognized in its entirety in earnings or if the credit portion is recognized in earnings and the noncredit portion is recognized in other comprehensive income (loss), the estimation of fair values has a significant impact on the amount(s) of any impairment that is recorded.

The noncredit portion of any OTTI losses on securities classified as available-for-sale is adjusted to fair value with an offsetting adjustment to the carrying value of the security. The fair value adjustment could increase or decrease the carrying value of the security.  All of the Company's private-label CMOs were originally, and continue to be classified, as held to maturity.

In periods subsequent to the recognition of an OTTI loss, the other-than-temporarily impaired debt security is accounted for as if it had been purchased on the measurement date of the OTTI at an amount equal to the previous amortized cost basis less the credit-related OTTI recognized in earnings. For debt securities for which credit-related OTTI is recognized in earnings, the difference between the new cost basis and the cash flows expected to be collected is accreted into interest income over the remaining life of the security in a prospective manner based on the amount and timing of future estimated cash flows.

The Company had investments in 48 positions that weretemporarily impaired at September 30, 2015.Based on its analysis, management has concluded that three private-label CMOs are other-than-temporarily impaired, while the remaining securities portfolio has experienced unrealized losses and a decrease in fair value due to interest rate volatility, illiquidity in the marketplace, or credit deterioration in theU.S.mortgagemarkets.

XML

INVESTMENT SECURITIES (Schedule of Amortized Cost and Fair Values of Investments) (Details) - USD ($) $ in Thousands		3 Months Ended	12 Months Ended
		Sep. 30, 2015	Jun. 30, 2015
AVAILABLE FOR SALE
Amortized Cost		$ 89,238	$ 66,968
Gross Unrealized Gains		64	63
Gross Unrealized Losses		(103)	(115)
Investment securities - available for sale		89,199	66,916
HELD TO MATURITY
Amortized Cost		25,123	36,618
Gross Unrealized Gains		470	455
Gross Unrealized Losses		(1)	(94)
Held-to-maturity		25,592	36,979
U.S. Government Agency Securities [Member]
HELD TO MATURITY
Amortized Cost		16,219	27,395
Gross Unrealized Gains		38	5
Gross Unrealized Losses		(1)	(94)
Held-to-maturity		16,256	27,306
Corporate Debt Securities [Member]
AVAILABLE FOR SALE
Amortized Cost		83,791	60,968
Gross Unrealized Gains		61	63
Gross Unrealized Losses		(102)	(93)
Investment securities - available for sale		83,750	60,938
HELD TO MATURITY
Amortized Cost		3,549	3,868
Gross Unrealized Gains		$ 306	$ 371
Gross Unrealized Losses
Held-to-maturity		$ 3,855	$ 4,239
Foreign Debt Securities [Member]
AVAILABLE FOR SALE
Amortized Cost	[1]	4,745	$ 5,298
Gross Unrealized Gains	[1]	3
Gross Unrealized Losses	[1]	(1)	$ (17)
Investment securities - available for sale	[1]	4,747	5,281
Obligations of States and Political Subdivisions [Member]
AVAILABLE FOR SALE
Amortized Cost		$ 702	$ 702
Gross Unrealized Gains
Gross Unrealized Losses			$ (5)
Investment securities - available for sale		$ 702	697
HELD TO MATURITY
Amortized Cost		5,355	5,355
Gross Unrealized Gains		$ 126	$ 79
Gross Unrealized Losses
Held-to-maturity		$ 5,481	$ 5,434

[1] U.S. dollar denominated investment-grade corporate bonds of large foreign issuers.

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Performing and Non-Performing Loans) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
First Mortgage Loans - 1 - 4 Family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 33,733	$ 28,620
Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	2,948	3,303
Performing Financing Receivable [Member] | First Mortgage Loans - 1 - 4 Family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	33,474	28,360
Performing Financing Receivable [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	2,948	3,303
Nonperforming Financing Receivable [Member] | First Mortgage Loans - 1 - 4 Family Dwellings [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable	$ 259	$ 260
Nonperforming Financing Receivable [Member] | Consumer Loan [Member]
Financing Receivable, Recorded Investment [Line Items]
Loans receivable

XML

FAIR VALUE OF FINANCIAL INSTRUMENTS

3 Months Ended

Sep. 30, 2015

FAIR VALUE OF FINANCIAL INSTRUMENTS [Abstract]

FAIR VALUE OF FINANCIAL INSTRUMENTS

13.FAIR VALUE OF FINANCIAL INSTRUMENTS

The carrying amounts and estimated fair values are as follows:

		September 30, 2015
	Carrying		Fair
	Amount		Value		Level I		Level II		Level III
		(Dollars in Thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	1,969	$	1,969	$	1,969	$	-	$	-
Certificates of deposit		350		350		350		-		-
Investment securities – available for sale		89,199		89,199		-		89,199		-
Investment securities – held to maturity		25,123		25,592		-		25,592		-
Mortgage-backed securities – held to maturity:
Agency		149,553		150,066		-		150,066		-
Private-label		1,875		2,215		-		-		2,215
Net loans receivable		52,543		53,616		-		-		53,616
Accrued interest receivable		1,387		1,387		1,387		-		-
FHLB stock		6,482		6,482		6,482		-		-
Bank owned life insurance		4,310		4,310		4,310		-		-
FINANCIAL LIABILITIES
Deposits:
Non-interest bearing deposits	$	16,512	$	16,512	$	16,512	$	-	$	-
NOW accounts		20,205		20,205		20,205		-		-
Savings accounts		44,686		44,686		44,686		-		-
Money market accounts		24,183		24,183		24,183		-		-
Certificates of deposit		30,059		30,030		-		-		30,030
Advance payments by borrowers for taxes     and insurance		853		853		853		-		-
FHLB long-term advances – fixed rate		12,500		13,051		-		-		13,051
FHLB long-term advances – variable rate		105,305		105,305		105,305		-		-
FHLB short-term advances		38,392		38,392		38,392		-		-
Other short-term borrowings		7,950		7,950		7,950		-		-
Accrued interest payable		164		164		164		-		-

		June 30, 2015
	Carrying		Fair
	Amount		Value		Level I		Level II		Level III
		(Dollars in Thousands)
FINANCIAL ASSETS
Cash and cash equivalents	$	3,573	$	3,573	$	3,573	$	-	$	-
Certificates of deposit		350		350		350		-		-
Investment securities – available for sale		66,916		66,916		-		66,916		-
Investment securities – held to maturity		36,618		36,979		-		36,979		-
Mortgage-backed securities – held to maturity:
Agency		160,614		160,835		-		160,835		-
Private-label		2,025		2,430		-		-		2,430
Net loans receivable		46,163		46,897		-		-		46,897
Accrued interest receivable		1,198		1,198		1,198		-		-
FHLB stock		6,619		6,619		6,619		-		-
Bank owned life insurance		4,276		4,276		4,276		-		-
FINANCIAL LIABILITIES
Deposits:
Non-interest bearing deposits	$	17,806	$	17,806	$	17,806	$	-	$	-
NOW accounts		20,238		20,238		20,238		-		-
Savings accounts		45,092		45,092		45,092		-		-
Money market accounts		23,601		23,601		23,601		-		-
Certificates of deposit		31,326		31,267		-		-		31,267
Advance payments by borrowers for taxes     and insurance		865		865		865		-		-
FHLB long-term advances – fixed rate		12,500		13,174		-		-		13,174
FHLB long-term advances- variable rate		105,305		105,305		105,305		-		-
FHLB short-term advances		37,830		37,830		37,830		-		-
Other short-term borrowings		-		-		-		-		-
Accrued interest payable		156		156		156		-		-

Financial instruments are defined as cash, evidence of an ownership interest in an entity, or a contract which creates an obligation or right to receive or deliver cash or another financial instrument from or to a second entity on potentially favorable or unfavorable terms.

Fair value is defined as the amount at which a financial instrument could be exchanged in a current transaction between willing parties, other than in a forced or liquidation sale.  If a quoted market price is available for a financial instrument, the estimated fair value would be calculated based upon the market price per trading unit of the instrument.

If no readily available market exists, the fair value estimates for financial instruments should be based upon management's judgment regarding current economic conditions, interest rate risk, expected cash flows, future estimated losses, and other factors, as determined through various option pricing formulas or simulation modeling.  As many of these assumptions result from judgments made by management based upon estimates, which are inherently uncertain, the resulting estimated values may not be indicative of the amount realizable in the sale of a particular financial instrument.  In addition, changes in the assumptions on which the estimated values are based may have a significant impact on the resulting estimated values.

As certain assets and liabilities, such as deferred tax assets, premises and equipment, and many other operational elements of the Company, are not considered financial instruments, but have value, this estimated fair value of financial instruments would not represent the full market value of the Company.

Estimated fair values have been determined by the Company using the best available data, as generally provided in internal Savings Bank regulatory, or third party valuation reports, using an estimation methodology suitable for each category of financial instruments.  The estimation methodologies used are as follows:

Cash and Cash Equivalents, Certificates of Deposit, Accrued Interest Receivable and Payable, FHLBShort-term Advances, and Other Short-term Borrowings

The fair value approximates the current carrying value.

Investment Securities, Mortgage-Backed Securities, and FHLB Stock

The fair value of investment and mortgage-backed securities is equal to the available quoted market price. If no quoted market price is available, fair value is estimated using the quoted market price for similar securities. For discussion of valuation of private-label CMOs, see Note 8 “Unrealized Losses on Securities”.  Since the FHLB stock is not actively traded on a secondary market and held exclusively by member financial institutions, the estimated fair market value approximates the carrying amount.

Net Loans Receivable, Deposits, and Advance Payments by Borrowers for Taxes and Insurance

Fair value for consumer mortgage loans is estimated using market quotes or discounting contractual cash flows for prepayment estimates.  Discount rates were obtained from secondary market sources, adjusted to reflect differences in servicing, credit, and other characteristics.

The estimated fair values for consumer, fixed-rate commercial, and multi-family real estate loans are estimated by discounting contractual cash flows for prepayment estimates.  Discount rates are based upon rates generally charged for such loans with similar credit characteristics.

The estimated fair value for nonperforming loans is the appraised value of the underlying collateral adjusted for estimated credit risk.

Demand, savings, money market deposit accounts, and advance payments by borrowers for taxes and insurance are reported at book value.  The fair value of certificates of deposit is based upon the discounted value of the contractual cash flows.  The discount rate is estimated using average market rates for deposits with similar average terms.

Bank Owned Life Insurance (“BOLI”)

The fair value of BOLI approximates the cash surrender value of the policies at these dates.

FHLB Long-term Advances

The fair values of fixed-rate advances are estimated using discounted cash flows, based on current incremental borrowing rates for similar types of borrowing arrangements.  The carrying amount on variable rate advances approximates their fair value.

Commitments to Extend Credit

These financial instruments are generally not subject to sale, and estimated fair values are not readily available.  The carrying value, represented by the net deferred fee arising from the unrecognized commitment, and the fair value, determined by discounting the remaining contractual fee over the term of the commitment using fees currently charged to enter into similar agreements with similar credit risk, is not considered material for disclosure.

XML

UNREALIZED LOSSES ON SECURITIES (Tables)

3 Months Ended

Sep. 30, 2015

UNREALIZED LOSSES ON SECURITIES [Abstract]

Schedule of Gross Unrealized Losses and Fair Value

	September 30, 2015
	Less Than Six Months					Six through Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses			Value		Losses
		(Dollars in Thousands)
Corporate debt securities	$	38,537	$	(73	)	$	8,115	$	(29	)	$	-	$	-		$	46,652	$	(102	)
Foreign Debt Securities (4)		1,574		(1	)		-		-			-		-			1,574		(1	)
U.S. government agency securities		499		(1	)		-		-			-		-			499		(1	)
Obligations of states and political subdivisions		702		-			-		-			-		-			702		-
Collateralized mortgage obligations:
Agency		5,788		(9	)		27,285		(480	)		19,768		(222	)		52,841		(711	)
Total	$	47,100	$	(84	)	$	35,400	$	(509	)	$	19,768	$	(222	)	$	102,268	$	(815	)

	June 30, 2015
	Less Than Six Months					Six through Twelve Months					Twelve Months or Greater					Total
			Gross					Gross					Gross					Gross
	Fair		Unrealized			Fair		Unrealized			Fair		Unrealized			Fair		Unrealized
	Value		Losses			Value		Losses			Value		Losses			Value		Losses
		(Dollars in Thousands)
Corporate debt securities	$	28,284	$	(88	)	$	1,285	$	(5	)	$	-	$	-		$	29,569	$	(93	)
Foreign Debt Securities (4)		4,780		(16	)		501		(1	)		-		-			5,281		(17	)
U.S. government agency securities		21,318		(94	)		-		-			-		-			21,318		(94	)
Obligations of states and political subdivisions		697		(5	)		-		-			-		-			697		(5	)
Collateralized mortgage obligations:
Agency		22,504		(121	)		21,243		(663	)		16,092		(125	)		59,839		(909	)
Total	$	77,583	$	(324	)	$	23,029	$	(669	)	$	16,092	$	(125	)	$	116,704	$	(1,118	)

[3] 

Fair value estimate provided by the Company's independent third party valuation consultant.

[4]

U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.

Schedule of Changes in the Credit Loss

	Three Months Ended
	September 30,
	2015			2014
	(Dollars in Thousands)
Beginning balance	$	248		$	302
Initial credit impairment		-			-
Subsequent credit impairment		-			-
Reductions for amounts recognized in earnings due to intent or requirement to sell		-			-
Reductions for securities sold		-			-
Reduction for actual realized losses		(14	)		(10	)
Reduction for increase in cash flows expected to be collected		-			-
Ending Balance	$	234		$	292

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Schedule of Loan Portfolio by Aging Categories) (Details) - USD ($) $ in Thousands	Sep. 30, 2015	Jun. 30, 2015
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 52,360	$ 45,985
Total Past Due	327	353
90 Days + Past Due Non-accrual	259	309
Total Loans	52,687	46,338
Plus: Deferred loan fees	179	129
Allowance for loan losses	(323)	(304)
Net Loans Receivable	52,543	46,163
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 68	11
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 33
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - 1 - 4 Family Dwellings [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 33,406	$ 28,327
Total Past Due	327	293
90 Days + Past Due Non-accrual	259	260
Total Loans	33,733	$ 28,620
First Mortgage Loans - 1 - 4 Family Dwellings [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 68
First Mortgage Loans - 1 - 4 Family Dwellings [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 33
First Mortgage Loans - 1 - 4 Family Dwellings [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Construction [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 4,935	$ 3,032
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 4,935	$ 3,032
First Mortgage Loans - Construction [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Construction [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Construction [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Land Acquisition and Development [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 763	$ 653
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 763	$ 653
First Mortgage Loans - Land Acquisition and Development [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Land Acquisition and Development [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Land Acquisition and Development [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Multi-family Dwellings [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 5,992	$ 6,084
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 5,992	$ 6,084
First Mortgage Loans - Multi-family Dwellings [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Multi-family Dwellings [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Multi-family Dwellings [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Commercial [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 3,110	$ 3,335
Total Past Due		60
90 Days + Past Due Non-accrual		49
Total Loans	$ 3,110	3,395
First Mortgage Loans - Commercial [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due		$ 11
First Mortgage Loans - Commercial [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
First Mortgage Loans - Commercial [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Home Equity [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 811	$ 1,175
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 811	$ 1,175
Consumer Loans - Home Equity [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Home Equity [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Home Equity [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Home Equity Lines of Credit [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,967	$ 1,917
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 1,967	$ 1,917
Consumer Loans - Home Equity Lines of Credit [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Home Equity Lines of Credit [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Home Equity Lines of Credit [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Other [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 170	$ 211
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 170	$ 211
Consumer Loans - Other [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Other [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Consumer Loans - Other [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Commercial Loan [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current	$ 1,206	$ 1,251
Total Past Due
90 Days + Past Due Non-accrual
Total Loans	$ 1,206	$ 1,251
Commercial Loan [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Commercial Loan [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Commercial Loan [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Current
Total Past Due
90 Days + Past Due Non-accrual
Total Loans
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member] | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member] | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due
Obligations (Other Than Securities and Leases) of States and Political Subdivisions [Member] | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due

XML

ACCUMULATED OTHER COMPREHENSIVE LOSS (Details) - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	$ (461)	$ (420)
Other comprehensive income (loss) before reclassifications	$ 44	$ (1)
Amounts reclassified from accumulated other comprehensive income (loss)
Net current-period other comprehensive income (loss)	$ 44	$ (1)
Ending Balance	(417)	(421)
Available-for-sale Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(35)	130
Other comprehensive income (loss) before reclassifications	$ 8	$ (41)
Amounts reclassified from accumulated other comprehensive income (loss)
Net current-period other comprehensive income (loss)	$ 8	$ (41)
Ending Balance	(27)	89
Held-to-maturity Securities [Member]
Accumulated Other Comprehensive Income (Loss) [Line Items]
Beginning Balance	(426)	(550)
Other comprehensive income (loss) before reclassifications	$ 36	$ 40
Amounts reclassified from accumulated other comprehensive income (loss)
Net current-period other comprehensive income (loss)	$ 36	$ 40
Ending Balance	$ (390)	$ (510)

XML

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	3 Months Ended
	Sep. 30, 2015	Sep. 30, 2014
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME [Abstract]
NET INCOME	$ 311	$ 299
Investment securities available for sale not other-than-temporarily impaired:
Gains (losses) arising during the year	12	(62)
Less: Income tax effect	4	(21)
Net gains (losses)	8	(41)
Unrealized holdings gains (losses) on investment securities available for sale not other-than-temporarily impaired, net of tax	8	(41)
Investment securities held to maturity other-than-temporarily impaired:
Accretion of other comprehensive loss on other-than-temporarily impaired securities held to maturity	54	61
Less: Income tax effect	18	21
Net accretion	36	40
Unrealized holding gains on other-than-temporarily impaired securities held to maturity, net of tax	36	40
Other comprehensive income (loss)	44	(1)
COMPREHENSIVE INCOME	$ 355	$ 298

XML

RECENT ACCOUNTING PRONOUNCEMENTS

3 Months Ended

Sep. 30, 2015

RECENT ACCOUNTING PRONOUNCEMENTS [Abstract]

RECENT ACCOUNTING PRONOUNCEMENTS

2.        RECENT ACCOUNTING PRONOUNCEMENTS

In January 2014, the Financial Accounting Standards Board (“FASB”) issued Accounting Standards Update (“ASU”) 2014-01, Investments – Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Qualified Affordable Housing Projects. The amendments in this Update permit reporting entities to make an accounting policy election to account for their investments in qualified affordable housing projects using the proportional amortization method if certain conditions are met. Under the proportional amortization method, an entity amortizes the initial cost of the investment in proportion to the tax credits and other tax benefits received and recognizes the net investment performance in the income statement as a component of income tax expense (benefit).  The amendments in this Update should be applied retrospectively to all periods presented. A reporting entity that uses the effective yield method to account for its investments in qualified affordable housing projects before the date of adoption may continue to apply the effective yield method for those preexisting investments. The amendments in this Update are effective for public business entities for annual periods and interim reporting periods within those annual periods, beginning after December 15, 2014.  Early adoption is permitted. This Update did not have a significant impact on the Company's financial statements.

In January 2014, the FASB issued ASU 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans upon Foreclosure. The amendments in this Update clarify that an in substance repossession or foreclosure occurs, and a creditor is considered to have received physical possession of residential real estate property collateralizing a consumer mortgage loan, upon either (1) the creditor obtaining legal title to the residential real estate property upon completion of a foreclosure or (2) the borrower conveying all interest in the residential real estate property to the creditor to satisfy that loan through completion of a deed in lieu of foreclosure or through a similar legal agreement. Additionally, the amendments require interim and annual disclosure of both (1) the amount of foreclosed residential real estate property held by the creditor and (2) the recorded investment in consumer mortgage loans collateralized by residential real estate property that are in the process of foreclosure according to local requirements of the applicable jurisdiction. The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014. An entity can elect to adopt the amendments in this Update using either a modified retrospective transition method or a prospective transition method.  This Update did not have a significant impact on the Company's financial statements.

In May2014, the FASB issued ASU 2014-09, Revenue from Contracts with Customers (a new revenue recognition standard). The Update's core principle is that a company will recognize revenue to depict the transfer of 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. In addition, this update specifies the accounting for certain costs to obtain or fulfill a contract with a customer and expands disclosure requirements for revenue recognition. This Update is effective for annual reporting periods beginning after December15, 2016, including interim periods within that reporting period. The Company is evaluating the effect of adopting this new accounting Update.

In June 2014, the FASB issued ASU 2014-11, Transfers and Servicing (Topic 860): Repurchase-to-Maturity Transactions, Repurchase Financings, and Disclosures.  The amendments in this Update change the accounting for repurchase-to-maturity transactions to secured borrowing accounting.  For repurchase financing arrangements, the amendments require separate accounting for a transfer of a financial asset executed contemporaneously with a repurchase agreement with the same counterparty, which will result in secured borrowing accounting for the repurchase agreement.  The amendments also require enhanced disclosures.  The accounting changes in this Update are effective for the first interim or annual period beginning after December 15, 2014.  An entity is required to present changes in accounting for transactions outstanding on the effective date as a cumulative-effect adjustment to retained earnings as of the beginning of the period of adoption. Earlier application is prohibited.  The disclosure for certain transactions accounted for as a sale is required to be presented for interim and annual periods beginning after December 15, 2014, and the disclosure for repurchase agreements, securities lending transactions, and repurchase-to-maturity transactions accounted for as secured borrowings is required to be presented for annual periods beginning after December 15, 2014, and for interim periods beginning after March 15, 2015. The disclosures are not required to be presented for comparative periods before the effective date.  The Company has included the disclosures related to this Update in Note 11.

In June 2014, the FASB issued ASU 2014-12, Compensation – Stock Compensation (Topic 718): Accounting for Share-Based Payments when the Terms of an Award Provide that a Performance Target Could Be Achieved After the Requisite Service Period.  The amendments require that a performance target that affects vesting and that could be achieved after the requisite service period be treated as a performance condition. The amendments in this Update are effective for annual periods and interim periods within those annual periods beginning after December 15, 2015. Earlier adoption is permitted. Entities may apply the amendments in this Update either (a) prospectively to all awards granted or modified after the effective date or (b) retrospectively to all awards with performance targets that are outstanding as of the beginning of the earliest annual period presented in the financial statements and to all new or modified awards thereafter. If retrospective transition is adopted, the cumulative effect of applying this Update as of the beginning of the earliest annual period presented in the financial statements should be recognized as an adjustment to the opening retained earnings balance at that date. Additionally, if retrospective transition is adopted, an entity may use hindsight in measuring and recognizing the compensation cost.  This Update is not expected to have a significant impact on the Company's financial statements.

In August 2014, the FASB issued ASU 2014-14, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40).  The amendments in this Update require that a mortgage loan be derecognized and that a separate other receivable be recognized upon foreclosure if the following conditions are met:  (1) the loan has a government guarantee that is not separable from the loan before foreclosure, (2) at the time of foreclosure, the creditor has the intent to convey the real estate property to the guarantor and make a claim on the guarantee, and the creditor has the ability to recover under that claim, and (3) at the time of foreclosure, any amount of the claim that is determined on the basis of the fair value of the real estate is fixed.  Upon foreclosure, the separate other receivable should be measured based on the amount of the loan balance (principal and interest) expected to be recovered from the guarantor.  The amendments in this Update are effective for public business entities for annual periods, and interim periods within those annual periods, beginning after December 15, 2014.  This Update did not have a significant impact on the Company's financial statements.

In August 2014, the FASB issued ASU 2014-15, Presentation of Financial Statements – Going Concern (Subtopic 205-40).  The amendments in this Update provide guidance in accounting principles generally accepted in the United States of America about management's responsibility to evaluate whether there is substantial doubt about an entity's ability to continue as a going concern and to provide related footnote disclosures.  The amendments in this Update are effective for the annual period ending after December 15, 2016, and for annual periods and interim periods thereafter. Early application is permitted.  This Update is not expected to have a significant impact on the Company's financial statements.

In November 2014, the FASB issued ASU 2014-16, Derivatives and Hedging (Topic 815): Determining Whether the Host Contract in a Hybrid Financial Instrument Issued in the Form of a Share Is More Akin to Debt or to Equity (a consensus of the FASB Emerging Issues Task Force).  This Update clarifies how current U.S. GAAP should be interpreted in subjectively evaluating the economic characteristics and risks of a host contract in a hybrid financial instrument that is issued in the form of a share. Public business entities are required to implement the new requirements in fiscal years and interim periods within those fiscal years beginning after December 15, 2015. This Update is not expected to have a significant impact on the Company's financial statements.

In November 2014, the FASB issued ASU 2014-17, Business Combinations (Topic 805): Pushdown Accounting. The amendments in this Update apply to the separate financial statements of an acquired entity and its subsidiaries that are a business or nonprofit activity (either public or nonpublic) upon the occurrence of an event in which an acquirer (an individual or an entity) obtains control of the acquired entity.  An acquired entity may elect the option to apply pushdown accounting in the reporting period in which the change-in-control event occurs. If pushdown accounting is not applied in the reporting period in which the change-in-control event occurs, an acquired entity will have the option to elect to apply pushdown accounting in a subsequent reporting period to the acquired entity's most recent change-in-control event. The amendments in this Update are effective on November 18, 2014. After the effective date, an acquired entity can make an election to apply the guidance to future change-in-control events or to its most recent change-in-control event. This Update is not expected to have a significant impact on the Company's financial statements.

In January 2015, the FASB issued ASU 2015-01, Income Statement – Extraordinary and Unusual Items, as part of its initiative to reduce complexity in accounting standards.  This Update eliminates from U.S. GAAP the concept of extraordinary items.  The amendments in this Update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. A reporting entity may apply the amendments prospectively. A reporting entity may also apply the amendments retrospectively to all prior periods presented in the financial statements. Early adoption is permitted provided that the guidance is applied from the beginning of the fiscal year of adoption.  This Update is not expected to have a significant impact on the Company's financial statements.

In February 2015, the FASB issued ASU 2015-02, Consolidation (Topic 810). The amendments in this Update affect reporting entities that are required to evaluate whether they should consolidate certain legal entities. All legal entities are subject to reevaluation under the revised consolidation model. Specifically, the amendments (1) modify the evaluation of whether limited partnerships and similar legal entities are variable interest entities (“VIEs”) or voting interest entities; (2) eliminate the presumption that a general partner should consolidate a limited partnership; (3) affect the consolidation analysis of reporting entities that are involved with VIEs, particularly those that have fee arrangements and related-party relationships; and (4) provide a scope exception from consolidation guidance for reporting entities with interests in legal entities that are required to comply with or operate in accordance with requirements that are similar to those in Rule 2a-7 of the Investment Company Act of 1940 for registered money market funds.  The amendments in this Update are effective for public business entities for fiscal years, and for interim periods within those fiscal years, beginning after December 15, 2015.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and for interim periods within fiscal years beginning after December 15, 2017.  This Update is not expected to have a significant impact on the Company's financial statements.

In April 2015, the FASB issued ASU 2015-03, Interest – Imputation of Interest (Subtopic 835-30), as part of its initiative to reduce complexity in accounting standards.  To simplify presentation of debt issuance costs, the amendments in this Update require that debt issuance costs related to a recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The recognition and measurement guidance for debt issuance costs are not affected by the amendments in this Update.  For public business entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years.  For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within fiscal years beginning after December 15, 2016.  An entity should apply the new guidance on a retrospective basis, wherein the balance sheet of each individual period presented should be adjusted to reflect the period-specific effects of applying the new guidance. This Update is not expected to have a significant impact on the Company's financial statements.

In April 2015, the FASB issued ASU 2015-04, Compensation – Retirement Benefits (Topic 715), as part of its initiative to reduce complexity in accounting standards.  For an entity with a fiscal year-end that does not coincide with a month-end, the amendments in this Update provide a practical expedient that permits the entity to measure defined benefit plan assets and obligations using the month-end that is closest to the entity's fiscal year-end and apply that practical expedient consistently from year to year. The practical expedient should be applied consistently to all plans if an entity has more than one plan. The amendments in this Update are effective for public business entities for financial statements issued for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for financial statements issued for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. Earlier application is permitted. This Update is not expected to have a significant impact on the Company's financial statements.

In April 2015, the FASB issued ASU 2015-05, Intangibles – Goodwill and Other – Internal-Use Software (Subtopic 350-40), as part of its initiative to reduce complexity in accounting standards. This guidance will help entities evaluate the accounting for fees paid by a customer in a cloud computing arrangement. The amendments in this Update provide guidance to customers about whether a cloud computing arrangement includes a software license. If a cloud computing arrangement includes a software license, then the customer should account for the software license element of the arrangement consistent with the acquisition of other software licenses. If a cloud computing arrangement does not include a software license, the customer should account for the arrangement as a service contract.  For public business entities, the FASB decided that the amendments will be effective for annual periods, including interim periods within those annual periods, beginning after December 15, 2015. For all other entities, the amendments will be effective for annual periods beginning after December 15, 2015, and interim periods in annual periods beginning after December 15, 2016. Early adoption is permitted for all entities.  This Update is not expected to have a significant impact on the Company's financial statements.

In April 2015, the FASB issued ASU 2015-06, Earnings Per Share (Topic 260): Effects on Historical Earnings per Unit of Master Limited Partnership Dropdown Transactions.  Topic 260, Earnings Per Share, contains guidance that addresses master limited partnerships that originated from Emerging Issues Task Force (“EITF”) Issue No. 07-4, Application of the Two-Class Method Under FASB Statement No. 128 to Master Limited Partnerships. Under Topic 260, master limited partnerships apply the two-class method of calculating earnings per unit because the general partner, limited partners, and incentive distribution rights holders each participate differently in the distribution of available cash in accordance with the contractual rights contained in the partnership agreement. The amendments in this Update specify that for purposes of calculating historical earnings per unit under the two-class method, the earnings (losses) of a transferred business before the date of a dropdown transaction should be allocated entirely to the general partner. In that circumstance, the previously reported earnings per unit of the limited partners (which is typically the earnings per unit measure presented in the financial statements) would not change as a result of the dropdown transaction. Qualitative disclosures about how the rights to the earnings (losses) differ before and after the dropdown transaction occurs for purposes of computing earnings per unit under the two-class method are also required. The amendments in this Update are effective for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. Earlier application is permitted.  This Update is not expected to have a significant impact on the Company's financial statements.

In May 2015, the FASB issued ASU 2015-07, Disclosures for Investments in Certain Entities that Calculate Net Asset Value per Share (or Its Equivalent).  The Update applies to reporting entities that elect to measure the fair value of an investment using the net asset value per share (or its equivalent) practical expedient. Under the amendments in this Update, investments for which fair value is measured at net asset value per share (or its equivalent) using the practical expedient should not be categorized in the fair value hierarchy. Removing those investments from the fair value hierarchy not only eliminates the diversity in practice resulting from the way in which investments measured at net asset value per share (or its equivalent) with future redemption dates are classified, but also ensures that all investments categorized in the fair value hierarchy are classified using a consistent approach. Investments that calculate net asset value per share (or its equivalent), but for which the practical expedient is not applied will continue to be included in the fair value hierarchy. A reporting entity should continue to disclose information on investments for which fair value is measured at net asset value (or its equivalent) as a practical expedient to help users understand the nature and risks of the investments and whether the investments, if sold, are probable of being sold at amounts different from net asset value. The amendments in this Update are effective for public business entities for fiscal years beginning after December 15, 2015, and interim periods within those fiscal years. For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within those fiscal years. A reporting entity should apply the amendments retrospectively to all periods presented. The retrospective approach requires that an investment for which fair value is measured using the net asset value per share practical expedient be removed from the fair value hierarchy in all periods presented in an entity's financial statements. Earlier application is permitted. This Update is not expected to have a significant impact on the Company's financial statements. 

In May 2015, the FASB issued ASU 2015-08, Business Combinations – Pushdown Accounting – Amendment to SEC Paragraphs Pursuant to Staff Accounting Bulletin No. 115. This Update was issued to amend various SEC paragraphs pursuant to the issuance of Staff Accounting Bulletin No. 115.  This Update did not have a significant impact on the Company's financial statements.

         In May 2015, the FASB issued ASU 2015-09, Financial Services – Insurance (Topic 944): Disclosure About Short-Duration Contracts. The amendments apply to all insurance entities that issue short-duration contracts as defined in Topic 944, Financial Services – Insurance. The amendments require insurance entities to disclose for annual reporting periods certain information about the liability for unpaid claims and claim adjustment expenses. The amendments also require insurance entities to disclose information about significant changes in methodologies and assumptions used to calculate the liability for unpaid claims and claim adjustment expenses, including reasons for the change and the effects on the financial statements.  Additionally, the amendments require insurance entities to disclose for annual and interim reporting periods a rollforward of the liability for unpaid claims and claim adjustment expenses, described in Topic 944. For health insurance claims, the amendments require the disclosure of the total of incurred-but-not-reported liabilities plus expected development on reported claims included in the liability for unpaid claims and claim adjustment expenses. For public business entities, the amendments in this Update are effective for annual periods beginning after December 15, 2015, and interim periods within annual periods beginning after December 15, 2016.  For all other entities, the amendments in this Update are effective for annual periods beginning after December 15, 2016, and interim periods within annual periods beginning after December 15, 2017.  This Update is not expected to have a significant impact on the Company's financial statements.

In June 2015, the FASB issued ASU 2015-10, Technical Corrections and Improvements. The amendments in this Update represent changes to clarify the FASB Accounting Standards Codification (“Codification”), correct unintended application of guidance, or make minor improvements to the Codification that are not expected to have a significant effect on current accounting practice or create a significant administrative cost to most entities. Transition guidance varies based on the amendments in this Update. The amendments in this Update that require transition guidance are effective for all entities for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2015. Early adoption is permitted, including adoption in an interim period. All other amendments will be effective upon the issuance of this Update.  This Update is not expected to have a significant impact on the Company's financial statements.

In August 2015, the FASB issued ASU 2015-14, Revenue from Contracts with Customers (Topic 606). The amendments in this Update defer the effective date of ASU 2014-09 for all entities by one year.  Public business entities, certain not-for-profit entities, and certain employee benefit plans should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2017, including interim reporting periods within that reporting period.  All other entities should apply the guidance in ASU 2014-09 to annual reporting periods beginning after December 15, 2018, and interim reporting periods within annual reporting periods beginning after December 15, 2019.  The Company is evaluating the effect of adopting this new accounting Update.

In August 2015, the FASB issued ASU 2015-15, Interest – Imputation of Interest (Subtopic 835-30): Presentation And Subsequent Measurement of Debt Issuance Costs Associated with Line-of-Credit Arrangements - Amendments to SEC Paragraphs Pursuant to Staff Announcement at June 18, 2015 EITF Meeting.  This Update adds SEC paragraphs pursuant to the SEC Staff Announcement at the June 18, 2015 Emerging Issues Task Force meeting about the presentation and subsequent measurement of debt issuance costs associated with line-of-credit arrangements.  This Update is not expected to have a significant impact on the Company's financial statements.

         In September 2015, the FASB issued ASU 2015-16, Business Combinations (Topic 805).  The amendments in this Update require that an acquirer recognizes adjustments to provisional amounts that are identified during the measurement period in the reporting period in which the adjustment amounts are determined. The amendments in this Update require that the acquirer record, in the same period's financial statements, the effect on earnings of changes in depreciation, amortization, or other income effects, if any, as a result of the change to the provisional amounts, calculated as if the accounting had been completed at the acquisition date.  The amendments in this Update require an entity to present separately on the face of the income statement or disclose in the notes the portion of the amount recorded in current-period earnings by line item that would have been recorded in previous reporting periods if the adjustment to the provisional amounts had been recognized as of the acquisition date.  For public business entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2015, including interim periods within those fiscal years.  For all other entities, the amendments in this Update are effective for fiscal years beginning after December 15, 2016, and interim periods within fiscal years beginning after December 15, 2017. This Update is not expected to have a significant impact on the Company's financial statements.

XML

OTHER BORROWINGS (Schedule of Contractual Maturity of Repurchase Agreements) (Details) $ in Thousands	Sep. 30, 2015 USD ($)
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 7,950
Gross amount of recognized liabilities for repurchase agreements	$ 7,950
Amounts related to agreements not included in offsetting disclosures above
Maturity Overnight [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings
Maturity Less than 30 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 7,950
Maturity 30 to 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings
Maturity Greater than 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings
Loans [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 7,950
Loans [Member] | Maturity Overnight [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings
Loans [Member] | Maturity Less than 30 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings	$ 7,950
Loans [Member] | Maturity 30 to 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings
Loans [Member] | Maturity Greater than 90 Days [Member]
Assets Sold under Agreements to Repurchase [Line Items]
Total borrowings

XML

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES (Tables)

3 Months Ended

Sep. 30, 2015

LOANS AND RELATED ALLOWANCE FOR LOAN LOSSES [Abstract]

Schedule of Primary Segments of Loan Portfolio

		September 30, 2015						June 30, 2015
	Total Loans			Individually evaluated for impairment		Collectively evaluated for impairment		Total Loans			Individually evaluated for impairment		Collectively evaluated for impairment
		(Dollars in Thousands)
First mortgage loans:
1 – 4 family dwellings	$	33,733	$		-	$	33,733	$	28,620		$	-	$	28,620
Construction		4,935			-		4,935		3,032			-		3,032
Land acquisition & development		763			-		763		653			-		653
Multi-family dwellings		5,992			-		5,992		6,084			-		6,084
Commercial		3,110			-		3,110		3,395			49		3,346
Consumer Loans
Home equity		811			-		811		1,175			-		1,175
Home equity lines of credit		1,967			-		1,967		1,917			-		1,917
Other		170			-		170		211			-		211
Commercial Loans		1,206			-		1,206		1,251			-		1,251
Obligations (other than securities and leases) of states and political subdivisons		-			-		-		-			-		-
	$	52,687	$		-	$	52,687	$	46,338		$	49	$	46,289
Plus: Deferred loan costs		179							129
Allowance for loan losses		(323	)						(304	)
Total	$	52,543						$	46,163

Schedule of Impaired Loans

	September 30,		June 30,
	2015		2015
		(Dollars in Thousands)
Impaired loans with an allocated allowance:
Home equity lines of credit	$	-	$	-
Impaired loans without an allocated allowance:
Commercial real estate loans		-		49
Total impaired loans	$	-	$	49
Allocated allowance on impaired loans:
Home equity lines of credit	$	-	$	-
Total	$	-	$	-

		Three Months Ended
	September 30,		September 30,
	2015		2014
		(Dollars in Thousands)
Average impaired loans
Construction loans	$	-	$	-
Land acquisition & development loans		-		-
Commercial real estate loans		48		49
Home equity lines of credit		-		150
Total	$	48	$	199
Income recognized on impaired loans
Construction loans	$	-	$	-
Land acquisition & development loans		-		-
Commercial real estate loans		1		-
Home equity lines of credit		-		1
Total	$	1	$	1

Schedule of Nonaccrual Loans

	September 30,		June 30,
	2015		2015
		(Dollars in Thousands)
Principal outstanding
1 – 4 family dwellings	$	259	$	260
Construction		-		-
Land acquisition & development		-		-
Commercial real estate		-		49
Home equity lines of credit		-		-
Total	$	259	$	309

		Three Months Ended
	September 30,		September 30,
	2015		2014
		(Dollars in Thousands)
Average nonaccrual loans
1 – 4 family dwellings	$	260	$	366
Construction		-		-
Land acquisition & development		-		-
Commercial real estate		48		49
Home equity lines of credit		-		150
Total	$	308	$	565
Income that would have been recognized	$	5	$	8
Interest income recognized	$	6	$	9
Interest income foregone	$	-	$	3

Schedule of Recorded Investment

	For the Three Months Ended
	September 30, 2014
	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	(Dollars in Thousands)
Troubled debt restructurings:
Commercial real estate	1	$	49	$	49
Troubled debt restructurings that subsequently defaulted:	-	$	-	$	-

Schedule of Loan Portfolio by Aging Categories

	Current		30 – 59 Days Past Due			60 – 89 Days Past Due			90 Days + Past Due Accruing		90 Days + Past Due Non-accrual		Total Past Due		Total Loans
		(Dollars in Thousands)
September 30, 2015
First mortgage loans:
1 – 4 family dwellings	$	33,406	$	68	$		-	$		-	$	259	$	327	$	33,733
Construction		4,935		-			-			-		-		-		4,935
Land acquisition & development		763		-			-			-		-		-		763
Multi-family dwellings		5,992		-			-			-		-		-		5,992
Commercial		3,110		-			-			-		-		-	﷐	3,110
Consumer Loans:
Home equity		811		-			-			-		-		-		811
Home equity lines of credit		1,967		-			-			-		-		-		1,967
Other		170		-			-			-		-		-		170
Commercial Loans		1,206		-			-			-		-		-		1,206
Obligations (other than securities and leases) of states and political subdivisions		-		-			-			-		-		-		-
	$	52,360	$	68	$		-	$		-	$	259	$	327		52,687
Plus: Deferred loan fees																179
Allowance for loan losses																(323	)
Net Loans Receivable															$	52,543

	Current		30 – 59 Days Past Due		60 – 89 Days Past Due			90 Days + Past Due Accruing		90 Days + Past Due Non-accrual		Total Past Due		Total Loans
		(Dollars in Thousands)
June 30, 2015
First mortgage loans:
1 – 4 family dwellings	$	28,327	$	-	$	33	$		-	$	260	$	293	$	28,620
Construction		3,032		-		-			-		-		-		3,032
Land acquisition & development		653		-		-			-		-		-		653
Multi-family dwellings		6,084		-		-			-		-		-		6,084
Commercial		3,335		11		-			-		49		60		3,395
Consumer Loans
Home equity		1,175		-		-			-		-		-		1,175
Home equity lines of credit		1,917		-		-			-		-		-		1,917
Other		211		-		-			-		-		-		211
Commercial Loans		1,251		-		-			-		-		-		1,251
Obligations (other than securities and leases) of states and political subdivisions		-		-		-			-		-		-		-
	$	45,985	$	11	$	33	$		-	$	309	$	353		46,338
Plus: Deferred loan fees															129
Allowance for loan losses															(304	)
Net Loans Receivable														$	46,163

Schedule of Loans by Internal Classification

		September 30, 2015
	Construction		Land Acquisition & Development Loans		Multi-family Residential		Commercial Real Estate		Commercial			Obligations (other than securities and leases) of States and Political Subdivisions
	(Dollars in Thousands)
Pass	$	4,935	$	559	$	5,992	$	3,110	$	1,206	$		-
Special Mention		-		-		-		-		-			-
Substandard		-		204		-		-		-			-
Doubtful		-		-		-		-		-			-
Ending Balance	$	4,935	$	763	$	5,992	$	3,110	$	1,206	$		-

		June 30, 2015
	Construction		Land Acquisition & Development Loans		Multi-family Residential		Commercial Real Estate		Commercial			Obligations (other than securities and leases) of States and Political Subdivisions
	(Dollars in Thousands)
Pass	$	3,032	$	445	$	6,084	$	3,346	$	1,251	$		-
Special Mention		-		-		-		-		-			-
Substandard		-		208		-		49		-			-
Doubtful		-		-		-		-		-			-
Ending Balance	$	3,032	$	653	$	6,084	$	3,395	$	1,251	$		-

Schedule of Performing and Non-Performing Loans

	September 30, 2015
	1 – 4 Family		Consumer
		(Dollars in Thousands)
Performing	$	33,474	$	2,948
Non-performing		259		-
Total	$	33,733	$	2,948

	June 30, 2015
	1 – 4 Family		Consumer
		(Dollars in Thousands)
Performing	$	28,360	$	3,303
Non-performing		260		-
Total	$	28,620	$	3,303

Schedule of Primary Segments of Allowance for Loan Losses

		As of September 30, 2015
		First Mortgage Loans
	1 – 4 Family		Construction			Land Acquisition & Development		Multi-family		Commercial			Consumer Loans			Commercial Loans		Total
		(Dollars in Thousands)
Beginning ALLL Balance at June 30,2015	$	125	$	63	$		9	$	30	$	34		$	37	$		6	$	304
Charge-offs		-		-			-		-		-			-			-		-
Recoveries		-		-			-		-		-			-			-		-
Provisions		18		9			-		-		(3	)		(5	)		-		19
Ending ALLL Balance at September 30, 2015	$	143	$	72	$		9	$	30	$	31		$	32	$		6	$	323
Individually evaluated for impairment	$	-	$	-	$		-	$	-	$	-		$	-	$		-	$	-
Collectively evaluated for impairment		143		72			9		30		31			32			6		323
	$	143	$	72	$		9	$	30	$	31		$	32	$		6	$	323

		As of September 30, 2014
		First Mortgage Loans
	1 – 4 Family			Construction		Land Acquisition & Development		Multi-family			Commercial			Consumer Loans			Commercial Loans		Total
		(Dollars in Thousands)
Beginning ALLL Balance at June 30,2014	$	103		$	14	$	5	$	12		$	45		$	47	$		8	$	234
Charge-offs		-			-		-		-			-			-			-		-
Recoveries		-			-		-		-			-			-			-		-
Provisions		(28	)		7		5		(1	)		(2	)		22			-		3
Ending ALLL Balance  at September 30, 2014	$	75		$	21	$	10	$	11		$	43		$	69	$		8	$	237
Individually evaluated for impairment	$	-		$	-	$	-	$	-		$	-		$	37	$		-	$	37
Collectively evaluated for impairment		75			21		10		11			43			32			8		200
	$	75		$	21	$	10	$	11		$	43		$	69	$		8	$	237

Schedule of increased ALL reserve factors, due to increases in associated loan balances

Loan Segment	09/30/2015 Factor			09/30/2014 Factor
1 – 4 family		0.35	%		0.25	%
Construction:
1 – 4 family		0.75	%		0.25	%
5+ family		1.00	%		0.50	%

XML

MORTGAGE-BACKED SECURITIES (Schedule of Information Relating To Private Label CMO Portfolio) (Details) - USD ($)
$ in Thousands

3 Months Ended

Sep. 30, 2015

Jun. 30, 2015

Schedule of Held-to-maturity Securities [Line Items]

Investment securities - held to maturity

$ 25,123

$ 36,618

Investment securities held-to-maturity, fair value

25,592

36,979

Mortgage-backed Securities, Issued by Private Enterprises [Member]

Schedule of Held-to-maturity Securities [Line Items]

Investment securities - held to maturity

1,875

2,025

Investment securities held-to-maturity, fair value

2,215

^[1]

$ 2,430

Life to date impairment recorded in earnings

$ 355

Mortgage-backed Securities, Issued by Private Enterprises [Member] | Cusip No. 126694CP1 [Member]

Schedule of Held-to-maturity Securities [Line Items]

Standard & Poor's Rating

N/A

Moodys Rating

Caa2

Fitch Rating

D

Investment securities - held to maturity

$ 1,002

Investment securities held-to-maturity, fair value

^[1]

1,290

Life to date impairment recorded in earnings

$ 201

Mortgage-backed Securities, Issued by Private Enterprises [Member] | Cusip No. 126694KF4 [Member]

Schedule of Held-to-maturity Securities [Line Items]

Standard & Poor's Rating

D

Moodys Rating

N/A

Fitch Rating

D

Investment securities - held to maturity

$ 221

Investment securities held-to-maturity, fair value

^[1]

234

Life to date impairment recorded in earnings

$ 39

Mortgage-backed Securities, Issued by Private Enterprises [Member] | Cusip No. 126694KF4 [Member]

Schedule of Held-to-maturity Securities [Line Items]

Standard & Poor's Rating

D

Moodys Rating

N/A

Fitch Rating

D

Investment securities - held to maturity

$ 442

Investment securities held-to-maturity, fair value

^[1]

467

Life to date impairment recorded in earnings

$ 79

Mortgage-backed Securities, Issued by Private Enterprises [Member] | Cusip No. 126694MP0 [Member]

Schedule of Held-to-maturity Securities [Line Items]

Standard & Poor's Rating

D

Moodys Rating

N/A

Fitch Rating

D

Investment securities - held to maturity

$ 210

Investment securities held-to-maturity, fair value

^[1]

224

Life to date impairment recorded in earnings

$ 36

[1] Fair value estimate provided by the Company's independent third party valuation consultant.

XML

FAIR VALUE MEASUREMENTS

3 Months Ended

Sep. 30, 2015

FAIR VALUE MEASUREMENTS [Abstract]

FAIR VALUE MEASUREMENTS

12.FAIR VALUE MEASUREMENTS

Fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in the principal or most advantageous market for an asset or liability in an orderly transaction between market participants at the measurement date.  GAAP established a fair value hierarchy that prioritizes the use of inputs used in valuation methodologies into the following three levels:

Level I:	Quoted prices are available in active markets for identical assets or liabilities as of the reported date.
Level II:	Pricing inputs are other than the quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities includes items for which quoted prices are available but traded less frequently and items that are fair-valued using other financial instruments, the parameters of which can be directly observed.
Level III:	Assets and liabilities that have little to no pricing observability as of the reported date.  These items do not have two-way markets and are measured using management's  best estimate of fair value, where the inputs into the determination of fair value require significant management judgment or estimation.

Assets Measured at Fair Value on a Recurring Basis

Investment Securities Available-for-Sale

              Fair values for securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities' relationship to other benchmark quoted securities.  The Company has no Level I or Level III investment securities.  Level II investment securities were primarily comprised of investment-grade corporate bonds and U.S. dollar-denominated investment-grade corporate bonds of large foreign issuers.

              The following tables present the assets reported on a recurring basis on the Consolidated Balance Sheet at their fair value as of September 30, 2015 and June 30, 2015, by level within the fair value hierarchy.  As required by GAAP, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

			September 30, 2015
			Level I		Level II		Level III		Total
			(Dollars in Thousands)
Assets measured on a recurring basis:
Investment securities – available for sale:
	Obligations of states and political
	subdivisions	$	-	$	702	$	-	$	702
	Corporate securities		-		83,750		-		83,750
	Foreign debt securities (6)		-		4,747		-		4,747
		$	-	$	89,199	$	-	$	89,199

			June 30, 2015
			Level I		Level II		Level III		Total
			(Dollars in Thousands)
Assets measured on a recurring basis:
Investment securities – available for sale:
	Obligations of states and political
	subdivisions	$	-	$	697	$	-	$	697
	Corporate securities		-		60,938		-		60,938
	Foreign debt securities (7)		-		5,281		-		5,281
		$	-	$	66,916	$	-	$	66,916

[6]	U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.
[7]	U.S. dollar-denominated investment-grade corporate bonds of large foreign corporate issuers.

Assets Measured at Fair Value on a Nonrecurring Basis

              The Company may be required, from time to time, to measure certain financial assets and financial liabilities at fair value on a nonrecurring basis in accordance with U.S. generally accepted accounting principles. These include assets that are measured at the lower of cost or market value that were recognized at fair value below cost at the end of the period.

Impaired Loans

              Loans for which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement are considered impaired. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC Topic 310. The fair value of impaired loans is estimated using one of several methods, including collateral value, liquidation value and discounted cash flows. Those impaired loans not requiring an allowance represent loans for which the fair value of the expected repayments or collateral exceed the recorded investments in such loans. Collateral values are estimated using Level II inputs based on observable market data or Level III inputs based on customized discounting criteria. For a majority of impaired real estate related loans, the Company obtains a current external appraisal. Other valuation techniques are used as well, including internal valuations, comparable property analysis and contractual sales information.  The Company has no Level I, Level II or Level III impaired loans at September 30, 2015.  At June 30, 2015, Level III impaired loans were primarily comprised of one commercial real estate loan.

              The following tables present the assets reported on a non-recurring basis on the consolidated balance sheet at their fair values as of September 30, 2015 and June 30, 2015, by level within the fair value hierarchy.  As required by GAAP, financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

	September 30, 2015
	Level I		Level II		Level III		Total
	(Dollars in Thousands)
Assets measured on a non-recurring basis:
Impaired loans	$	-	$	-	$	-		-
Total	$	-	$	-	$	-	$	-

	September 30, 2015
	Level I		Level II		Level III		Total
	(Dollars in Thousands)
Assets measured on a non-recurring basis:
Impaired loans	$	-	$	-	$	49	$	49
Total	$	-	$	-	$	49	$	49

              For Level III assets measured at fair value on a recurring and non-recurring basis as of September 30, 2015 and June 30, 2015, the significant observable inputs used in the fair value measurements were as follows:

		Fair Value at
		September 30, 2015		June 30, 2015	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Range (Weighted Average)
		(Dollars in Thousands)
Impaired loans	$	-	$	49	Appraisal of collateral[8]	Discounted appraisal[9]	0%/0%

8	Fair value is generally determined through independent appraisals of the underlying collateral, which generallyinclude various level III inputs which are not identifiable.
9	Appraisals may be adjusted by management for qualitative factors such as economic conditions. The range and weighted average of appraisal adjustments are presented as a percentage of the appraisals.

              When evaluating the value of the collateral on impaired loans, the Company will consider the age of the most current appraisal, and may discount the appraised value from 1.0% to 15.0%.

              The Company classifies financial instruments in Level III of the fair value hierarchy when there is reliance on at least one significant unobservable input to the valuation model.  In addition to these unobservable inputs, the valuation model for Level III financial instruments typically also rely on a number of inputs that are readily observable, either directly or indirectly.