XML 45 R19.htm IDEA: XBRL DOCUMENT v3.20.1
Significant Accounting Policies (Policies)
9 Months Ended
Mar. 31, 2020
Accounting Policies [Abstract]  
Nature of Operations [Policy Text Block]
Nature of Operations:
Consumers Bancorp, Inc. (the Corporation) is a bank holding company headquartered in Minerva, Ohio that provides, through its banking subsidiary, Consumers National Bank (the Bank), a broad array of products and services throughout its primary market area of Carroll, Columbiana, Jefferson, Stark, Summit, Wayne and contiguous counties in Ohio. The Bank’s business involves attracting deposits from businesses and individual customers and using such deposits to originate commercial, mortgage and consumer loans in its primary market area.
Basis of Accounting, Policy [Policy Text Block]
Basis of Presentation
: The consolidated financial statements for interim periods are unaudited and reflect all adjustments (consisting of only normal recurring adjustments), which, in the opinion of management, are necessary to present fairly the financial position and results of operations and cash flows for the periods presented. The unaudited financial statements are presented in accordance with the requirements of Form
10
-Q and do
not
include all disclosures normally required by accounting principles generally accepted in the United States of America. The financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Corporation’s Form
10
-K for the year ended
June 30, 2019.
The results of operations for the interim period disclosed herein are
not
necessarily indicative of the results that
may
be expected for a full year.
 
The consolidated financial statements include the accounts of the Corporation and the Bank. All significant inter-company transactions and accounts have been eliminated in consolidation.
Segment Reporting, Policy [Policy Text Block]
Segment Information:
The Corporation is a bank holding company engaged in the business of commercial and retail banking, which accounts for substantially all the revenues, operating income, and assets. Accordingly, all of the Corporation’s operations are recorded in
one
segment, banking.
Business Combinations Policy [Policy Text Block]
Acquisition:
At the date of acquisition the Corporation records the assets and liabilities of acquired companies on the Consolidated Balance Sheet at their fair value. The results of operations for acquired companies are included in the Corporation’s Consolidated Statements of Income beginning at the acquisition date. Expenses arising from acquisition activities are recorded in the Consolidated Statements of Income during the periods incurred.
Reclassification, Comparability Adjustment [Policy Text Block]
Reclassifications:
Certain items in prior financial statements have been reclassified to conform to the current presentation. Any reclassifications had
no
impact on prior year net income or shareholders’ equity.
New Accounting Pronouncements, Policy [Policy Text Block]
Adoption of New Accounting Standards
: In
February 2016,
FASB issued accounting standards update (ASU)
2016
-
02,
Leases (Topic
842
)
. This ASU requires all organizations that lease assets to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. Additional qualitative and quantitative disclosures are required so users can understand more about the nature of an entity’s leasing activities. The new guidance was effective for annual reporting periods, and interim reporting periods within those annual periods, beginning after
December 15, 2018.
The Corporation has several lease agreements, such as branch locations, which were previously considered operating leases, and therefore,
not
recognized on the Corporation’s consolidated condensed statements of financial condition. The new guidance requires these lease agreements to now be recognized on the consolidated condensed statements of financial condition as a right-of-use asset and a corresponding lease liability. As of
July 1, 2019,
the Corporation adopted ASU
2016
-
02
using the modified retrospective method. There was
no
cumulative-effect adjustment to the opening balance of retained earnings for the period of adoption. As of
March 31, 2020,
the Corporation had contractual operating lease commitments of
$500.
 
Recently Issued Accounting Pronouncements
Not
Yet Effective:
In
June 2016,
Financial Accounting Standards Board (FASB) issued ASU
2016
-
13,
Financial Instruments—Credit Losses (Topic
326
): Measurement of Credit Losses on Financial Instruments. This ASU adds a new Topic
326
to the codification and removes the thresholds that companies apply to measure credit losses on financial instruments measured at amortized cost, such as loans, receivables, and held-to-maturity debt securities. Under current U.S. generally accepted accounting principles, companies generally recognize credit losses when it is probable that the loss has been incurred. The revised guidance will remove all current loss recognition thresholds and will require companies to recognize an allowance for credit losses for the difference between the amortized cost basis of a financial instrument and the amount of amortized cost that the corporation expects to collect over the instrument’s contractual life. ASU
2016
-
13
also amends the credit loss measurement guidance for available-for-sale debt securities and beneficial interests in securitized financial assets. The guidance in ASU
2016
-
13
is effective for “public business entities,” as defined in the guidance, that are SEC filers for fiscal years and for interim periods within those fiscal years beginning after
December 15, 2019.
Early adoption of the guidance is permitted for fiscal years beginning after
December 15, 2018,
including interim periods within those fiscal years. However, during
July 2019,
FASB unanimously voted for a proposal to delay this ASU to
January 2023
for smaller reporting companies. On
October 16, 2019,
FASB approved a final ASU delaying the effective date. The new guidance is effective for annual and interim periods beginning after
December 15, 2022
for certain entities, including smaller reporting companies. The Corporation is a smaller reporting company.