Regulatory Capital

9 Months Ended

Mar. 31, 2017

Banking and Thrift [Abstract]

Regulatory Capital

Note 8. Regulatory Capital

The following is a summary of the Bank’s actual capital amounts and ratios as of March 31, 2017 and June 30, 2016, compared to the required ratios for minimum capital adequacy and for classification as well capitalized (dollars in thousands):

						FDIC Required Ratios
	Bank Actual					Adequacy					Well Capitalized
	Amount		Ratio			Amount		Ratio			Amount		Ratio
March 31, 2017
Leverage (Tier 1)	$	116,357		9.1	%	$	51,258		4.0	%	$	64,073		5.0	%
Risk-based:
Common Tier 1		116,357		14.0			37,426		4.5			54,059		6.5
Tier 1		116,357		14.0			49,901		6.0			66,535		8.0
Total		121,187		14.6			66,535		8.0			83,168		10.0
June 30, 2016
Leverage (Tier 1)	$	110,888		8.9	%	$	49,748		4.0	%	$	62,185		5.0	%
Risk-based:
Common Tier 1		110,888		13.5			37,036		4.5			53,497		6.5
Tier 1		110,888		13.5			49,382		6.0			65,842		8.0
Total		114,930		14.0			65,842		8.0			82,303		10.0

In addition to the ratios above, the Basel III Capital Rules established that community banking institutions must maintain a capital conservation buffer of common equity Tier 1 capital in an amount greater than 2.5% of total risk-weighted assets to avoid being subject to limitations on capital distributions and discretionary bonus payments to executive officers. The implementation of the capital conservation buffer began on January 1, 2016 at the 0.625% level and will be phased in over a four-year period (increasing by that amount on each subsequent January 1, until it reaches 2.5% on January 1, 2019).

Management believes that as of March 31, 2017 and June 30, 2016, the Bank met all capital adequacy requirements to which it was subject, including the capital conservation buffer of 1.250% as of March 31, 2017 and 0.625% as of June 30, 2016. Further, the most recent FDIC notification categorized the Bank as a well-capitalized institution under the prompt corrective action regulations. There have been no conditions or events since that notification that management believes have changed the Bank’s capital classification.