JUNIOR SUBORDINATED DEBTURES AND OTHER BORROWINGS

12 Months Ended

Jun. 30, 2015

Debt Disclosure [Abstract]

JUNIOR SUBORDINATED DEBENTURES AND OTHER BORROWINGS

JUNIOR SUBORDINATED DEBENTURES AND OTHER BORROWINGS

Junior Subordinated Debentures. On December 13, 2004, the Company entered into an agreement to form an unconsolidated trust which issued $5,000 of trust preferred securities in a transaction that closed on December 16, 2004. The net proceeds from the offering were used to purchase $5,155 of junior subordinated debentures (“Debentures”) of the Company with a stated maturity date of February 23, 2035. The Debentures are the sole assets of the trust. The trust preferred securities are mandatorily redeemable upon maturity, or upon earlier redemption as provided in the indenture. The Company has the right to redeem the Debentures in whole (but not in part) on or after specific dates, at a redemption price specified in the indenture plus any accrued but unpaid interest through the redemption date. Interest accrues at the rate of three-month LIBOR plus 2.4% (with LIBOR at 2.68% as of June 30, 2015), with interest paid quarterly starting February 16, 2005.

The Bank has the ability to borrow short-term from the Federal Reserve Bank Discount Window. At June 30, 2015 and 2014 there were no amounts outstanding and the available borrowings from this source were $8,705 and $16,582, respectively. The 2015 available borrowings would be collateralized by consumer loans and mortgage-backed securities totaling $11,321 and $13,938, respectively. The Bank has additional unencumbered collateral that could be pledged to the Federal Reserve Bank Discount Window to increase borrowing liquidity.

The Bank has federal funds lines of credit with two major banks totaling $35.0 million. At June 30, 2015 and 2014 the Bank had no outstanding balances on these lines.