Note 7 - Allowance for Credit Losses

12 Months Ended

Jun. 30, 2017

Notes to Financial Statements

Allowance for Credit Losses [Text Block]

Note

7

– Allowance for Credit Losses

:

The allowance for credit losses includes amounts to cover losses related to the net investment in leases, commercial loans, and transactions-in-process (“risk assets”). A summary of the allocation of the allowance for credit losses and selected statistics is as follows:

	June 30,
	2017			2016
	(dollars in thousands)
Allowance for credit losses at beginning of year	$	6,862		$	6,456
Charge-off of leases		(168	)		(1,120	)
Recovery of lease amounts previously written off		203			51
Provision for credit losses		250			1,475
Allowance for credit losses at end of year	$	7,147		$	6,862
Components of allowance for credit losses:
Allowance for lease losses	$	1,943		$	2,290
Allowance for loan losses		5,204			4,572
	$	7,147		$	6,862
Allowance for credit losses as percent of net investment in leases and loans before allowances		1.42	%		1.06	%
Net recoveries (charge-offs) as percent of average leases and loans		0.0	%		-0.2	%

In addition to the allowance for credit losses, the Company has recorded a liability for unfunded loan commitments of

$50,000

at

June 30, 2017

and

2016.