LOANS AND LEASES RECEIVABLE (Tables)

6 Months Ended

Dec. 31, 2015

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Loans and Leases Receivable by Classes Within Portfolio Segments

Loans and leases receivable by classes within portfolio segments, consist of the following:



	December 31, 2015				June 30, 2015
	Amount		Percent		Amount		Percent
Residential:
One-to four-family	$	59,911	6.6	%	$	55,572	6.1	%
Construction	7,336		0.8		6,308		0.7
Commercial:
Commercial business ⁽¹⁾	69,547		7.7		78,493		8.6
Equipment finance leases	101		—		158		—
Commercial real estate:
Commercial real estate	334,600		37.0		325,453		35.6
Multi-family real estate	108,816		12.0		111,354		12.2
Construction	71,629		7.9		48,224		5.3
Agricultural:
Agricultural real estate	85,451		9.4		96,952		10.6
Agricultural business	100,434		11.1		123,988		13.5
Consumer:
Consumer direct	14,477		1.6		14,837		1.6
Consumer home equity	50,734		5.6		50,377		5.5
Consumer overdraft & reserve	2,534		0.3		2,703		0.3
Total loans and leases receivable ⁽²⁾	$	905,570	100.0	%	$	914,419	100.0	%

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⁽¹⁾	Includes $1,238 and $1,377 tax exempt leases at December 31, 2015 and June 30, 2015, respectively.


⁽²⁾	Exclusive of undisbursed portion of loans in process and net of deferred loan fees and discounts.

Schedule of Allowance for Loan and Lease Losses

The following tables summarize the activity in the allowance for loan and lease losses by portfolio segment for the three months ended:



December 31, 2015
	Residential		Commercial			Commercial Real Estate		Agricultural			Consumer			Total
Balance at beginning of period	$	269	$	773		$	5,197	$	3,773		$	1,244		$	11,256
Charge-offs	—		—			—		(96		)	(91		)	(187		)
Recoveries	—		38			—		125			35			198
Provisions	42		(97		)	226		45			(24		)	192
Balance at end of period	$	311	$	714		$	5,423	$	3,847		$	1,164		$	11,459



December 31, 2014
	Residential		Commercial			Commercial Real Estate		Agricultural			Consumer			Total
Balance at beginning of period	$	260	$	925		$	4,156	$	3,569		$	1,469		$	10,379
Charge-offs	—		—			—		(344		)	(89		)	(433		)
Recoveries	—		10			4		2			30			46
Provisions	12		(62		)	311		638			42			941
Balance at end of period	$	272	$	873		$	4,471	$	3,865		$	1,452		$	10,933

The following tables summarize the activity in the allowance for loan and lease losses by portfolio segment for the six months ended:



December 31, 2015
	Residential			Commercial			Commercial Real Estate		Agricultural			Consumer			Total
Balance at beginning of period	$	301		$	795		$	4,761	$	4,037		$	1,336		$	11,230
Charge-offs	—			—			—		(96		)	(284		)	(380		)
Recoveries	—			49			—		125			65			239
Provisions	10			(130		)	662		(219		)	47			370
Balance at end of period	$	311		$	714		$	5,423	$	3,847		$	1,164		$	11,459

December 31, 2014
	Residential			Commercial			Commercial Real Estate		Agricultural			Consumer			Total
Balance at beginning of period	$	283		$	932		$	3,819	$	3,842		$	1,626		$	10,502
Charge-offs	—			—			—		(344		)	(230		)	(574		)
Recoveries	—			17			4		2			63			86
Provisions	(11		)	(76		)	648		365			(7		)	919
Balance at end of period	$	272		$	873		$	4,471	$	3,865		$	1,452		$	10,933

The following tables summarize the related statement balances by portfolio segment:



	December 31, 2015
	Residential		Commercial		Commercial Real Estate		Agricultural		Consumer		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	27	$	7	$	68	$	—	$	142	$	244
Collectively evaluated for impairment	284		707		5,355		3,847		1,022		11,215
Total allowance for loan and lease losses	$	311	$	714	$	5,423	$	3,847	$	1,164	$	11,459
Loans and leases receivable:
Individually evaluated for impairment	$	143	$	1,495	$	770	$	13,377	$	999	$	16,784
Collectively evaluated for impairment	67,104		68,153		514,275		172,508		66,746		888,786
Total loans and leases receivable	$	67,247	$	69,648	$	515,045	$	185,885	$	67,745	$	905,570

	June 30, 2015
	Residential		Commercial		Commercial Real Estate		Agricultural		Consumer		Total
Allowance for loan and lease losses:
Individually evaluated for impairment	$	32	$	7	$	4	$	—	$	236	$	279
Collectively evaluated for impairment	269		788		4,757		4,037		1,100		10,951
Total allowance for loan and lease losses	$	301	$	795	$	4,761	$	4,037	$	1,336	$	11,230
Loans and leases receivable:
Individually evaluated for impairment	$	148	$	2,731	$	712	$	14,009	$	1,192	$	18,792
Collectively evaluated for impairment	61,732		75,920		484,319		206,931		66,725		895,627
Total loans and leases receivable	$	61,880	$	78,651	$	485,031	$	220,940	$	67,917	$	914,419

Schedule of Credit Quality Indicators by Classes Within the Portfolio Segments

redit Quality Indicators

The Company categorizes loans into risk categories based on relevant information about the ability of borrowers to service their debt such as: current financial information, historical payment experience, credit documentation, public information and current economic trends, among other factors. For loans other than residential and consumer, the Company analyzes loans individually, by classifying the loans as to credit risk. This analysis includes non-term loans, regardless of balance and term loans with an outstanding balance greater than $100. Each loan is reviewed annually, at a minimum. Specific events applicable to the loan may trigger an additional review prior to its scheduled review, if such event is determined to possibly modify the risk classification. The summary of the analysis for the portfolio is calculated on a monthly basis. The Company uses the following definitions for risk ratings:

Pass—Loans classified as pass represent loans that are evaluated and are performing under the stated terms. Pass rated assets are analyzed by the pay capacity, the current net worth, and the value of the loan collateral of the obligor.

Special Mention—Loans classified as special mention possess potential weaknesses that require management attention, but do not yet warrant adverse classification. While the status of a loan put on this list may not technically trigger their classification as Substandard or Doubtful, it is considered a proactive way to identify potential issues and address them before the situation deteriorates further and does result in a loss for the Company.

Substandard—Loans classified as substandard are inadequately protected by the current net worth, paying capacity of the obligor, or by the collateral pledged. Substandard loans must have a well-defined weakness or weaknesses that jeopardize the repayment of the debt as originally contracted. They are characterized by the distinct possibility that the Company will sustain a loss if the deficiencies are not corrected.

Doubtful—Loans classified as doubtful 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, highly questionable and improbable. Loans that fall into this class are deemed collateral dependent and an individual impairment analysis is performed on all relationships. Loans in this category are allocated a specific reserve if the estimated discounted cash flows from the loan (or collateral value less cost to sell for collateral dependent loans) does not support the outstanding loan balance or charged off if deemed uncollectible.

The following tables summarize the credit quality indicators used to determine the credit quality by class within the portfolio segments:

Credit risk profile by internally assigned grade—Commercial, Commercial real estate and Agricultural portfolio segments



	December 31, 2015								June 30, 2015
	Pass		Special Mention		Substandard		Doubtful		Pass		Special Mention		Substandard		Doubtful
Commercial:
Commercial business	$	67,188	$	39	$	2,320	$	—	$	74,660	$	1,047	$	2,795	$	—
Equip. finance leases	101		—		—		—		158		—		—		—
Commercial real estate:
Commercial real estate	331,157		—		3,478		—		316,790		4,277		4,386		—
Multi-family real estate	101,820		5,898		1,098		—		110,239		—		1,115		—
Construction	71,629		—		—		—		48,224		—		—		—
Agricultural:
Agricultural real estate	76,352		302		8,802		—		89,772		595		6,599		—
Agricultural business	95,696		646		4,732		—		118,937		912		4,303		—
	$	743,943	$	6,885	$	20,430	$	—	$	758,780	$	6,831	$	19,198	$	—

Credit risk profile based on payment activity—Residential and Consumer portfolio segments



	December 31, 2015				June 30, 2015
	Performing		Nonperforming		Performing		Nonperforming
Residential:
One-to four- family	$	59,803	$	108	$	55,460	$	112
Construction	7,336		—		6,308		—
Consumer:
Consumer direct	14,447		30		14,792		45
Consumer home equity	50,527		207		50,140		237
Consumer OD & reserves	2,534		—		2,703		—
	$	134,647	$	345	$	129,403	$	394

Schedule of Past Due Financing Receivables by Classes Within the Portfolio Segments

The following table summarizes the aging of the past due financing receivables by classes within the portfolio segments and related accruing and nonaccruing balances:



December 31, 2015	Accruing and Nonaccruing Loans										Nonperforming Loans
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days		Total Past Due		Current⁽²⁾		Recorded Investment >90 Days and Accruing⁽¹⁾		Nonaccrual Balance		Total
Residential:
One-to four-family	$	—	$	—	$	—	$	—	$	59,911	$	—	$	108	$	108
Construction	—		—		—		—		7,336		—		—		—
Commercial:
Commercial business	—		476		3		479		69,068		—		1,495		1,495
Equipment finance leases	—		—		—		—		101		—		—		—
Commercial real estate:
Commercial real estate	—		—		247		247		334,353		—		522		522
Multi-family real estate	—		—		—		—		108,816		—		—		—
Construction	—		—		—		—		71,629		—		—		—
Agricultural:
Agricultural real estate	—		—		767		767		84,684		—		3,900		3,900
Agricultural business	—		—		772		772		99,662		—		4,626		4,626
Consumer:
Consumer direct	37		40		156		233		14,244		—		30		30
Consumer home equity	—		—		—		—		50,734		—		207		207
Consumer OD & reserve	4		—		—		4		2,530		—		—		—
Total	$	41	$	516	$	1,945	$	2,502	$	903,068	$	—	$	10,888	$	10,888

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⁽¹⁾	Loans accruing and delinquent greater than 90 days have either government guarantees or acceptable loan-to-value ratios.


⁽²⁾	Net of deferred loan fees and discounts and exclusive of undisbursed portion of loans in process.



June 30, 2015	Accruing and Nonaccruing Loans										Nonperforming Loans
	30 - 59 Days Past Due		60 - 89 Days Past Due		Greater Than 89 Days		Total Past Due		Current⁽²⁾		Recorded Investment >90 Days and Accruing⁽¹⁾		Nonaccrual Balance		Total
Residential:
One-to four-family	$	—	$	—	$	—	$	—	$	55,572	$	—	$	112	$	112
Construction	4		—		—		4		6,304		—		—		—
Commercial:
Commercial business	26		—		485		511		77,982		—		2,398		2,398
Equipment finance leases	—		—		—		—		158		—		—		—
Commercial real estate:
Commercial real estate	23		—		—		23		325,430		—		359		359
Multi-family real estate	—		—		—		—		111,354		—		—		—
Construction	—		—		—		—		48,224		—		—		—
Agricultural:
Agricultural real estate	375		139		1,203		1,717		95,235		—		4,482		4,482
Agricultural business	720		521		1,206		2,447		121,541		—		5,474		5,474
Consumer:
Consumer direct	18		3		3		24		14,813		—		45		45
Consumer home equity	190		—		135		325		50,052		—		237		237
Consumer OD & reserve	5		—		—		5		2,698		—		—		—
Total	$	1,361	$	663	$	3,032	$	5,056	$	909,363	$	—	$	13,107	$	13,107

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⁽¹⁾	Loans accruing and delinquent greater than 90 days have either government guarantees or acceptable loan-to-value ratios.


⁽²⁾	Net of deferred loan fees and discounts and exclusive of undisbursed portion of loans in process.

Schedule of Impaired Loans by Class of Loans

The following table summarizes impaired loans by class of loans and the specific valuation allowance:



	December 31, 2015						June 30, 2015
	Recorded Investment		Unpaid Principal Balance⁽¹⁾		Related Allowance		Recorded Investment		Unpaid Principal Balance⁽¹⁾		Related Allowance
With no related allowance recorded:
Commercial business	$	1,345	$	1,345	$	—	$	2,571	$	2,571	$	—
Commercial real estate	622		622		—		689		689		—
Agricultural real estate	7,598		7,598		—		7,633		7,633		—
Agricultural business	5,779		5,779		—		6,376		6,376		—
Consumer direct	6		6		—		9		24		—
Consumer home equity	546		546		—		580		580		—
	15,896		15,896		—		17,858		17,873		—
With an allowance recorded:
One-to four-family	143		143		27		148		148		32
Commercial business	150		150		7		160		160		7
Commercial real estate	148		148		68		23		23		4
Consumer direct	24		24		24		36		36		36
Consumer home equity	423		438		118		567		567		200
	888		903		244		934		934		279
Total:
One-to four-family	143		143		27		148		148		32
Commercial business	1,495		1,495		7		2,731		2,731		7
Commercial real estate	770		770		68		712		712		4
Agricultural real estate	7,598		7,598		—		7,633		7,633		—
Agricultural business	5,779		5,779		—		6,376		6,376		—
Consumer direct	30		30		24		45		60		36
Consumer home equity	969		984		118		1,147		1,147		200
	$	16,784	$	16,799	$	244	$	18,792	$	18,807	$	279

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⁽¹⁾	Represents the borrower's loan obligation, gross of any previously charged-off amounts.

The following tables summarize the Company's average recorded investment in impaired loans by class of loans and the related interest income recognized for the periods indicated:



	Three Months Ended December 31,
	2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
One-to four-family	$	146	$	—	$	156	$	1
Commercial business	1,683		—		3,538		16
Commercial real estate	762		3		617		1
Multi-family real estate	—		—		6,190		—
Agricultural real estate	7,560		54		7,948		45
Agricultural business	5,858		8		4,490		—
Consumer direct	32		—		72		—
Consumer home equity	985		13		1,587		16
	$	17,026	$	78	$	24,598	$	79



	Six Months Ended December 31,
	2015				2014
	Average Recorded Investment		Interest Income Recognized		Average Recorded Investment		Interest Income Recognized
One-to four-family	$	146	$	1	$	158	$	1
Commercial business	2,032		—		3,766		29
Commercial real estate	745		6		747		1
Multi-family real estate	—		—		6,225		70
Agricultural real estate	7,584		57		8,947		91
Agricultural business	6,031		14		4,259		—
Consumer direct	36		—		67		—
Consumer home equity	1,039		27		1,647		31
	$	17,613	$	105	$	25,816	$	223

Schedule of Troubled Debt Restructurings by Portfolio Segments

Modifications of terms for the Company's loans and their inclusion as troubled debt restructurings are based on individual facts and circumstances. Loan modifications that are included as troubled debt restructurings may involve reduction of the interest rate or renewing at an interest rate below current market rates, extension of the term of the loan and/or forgiveness of principal, regardless of the period of the modification.

Loans and leases that are considered troubled debt restructurings are factored into the determination of the allowance for loan and lease losses through impaired loan analysis and any subsequent allocation of specific valuation allowance, if applicable. The Company measures impairment on an individual loan and the extent to which a specific valuation allowance is necessary by comparing the loan's outstanding balance to either the fair value of the collateral, less the estimated cost to sell or the present value of expected cash flows, discounted at the loan's effective interest rate. During fiscal 2016, new TDRs consisted of two agricultural loans and four consumer loans. Of these new TDRs, one was evaluated for impairment based on collateral adequacy.

The following is a summary of the Company's performing troubled debt restructurings which are in-compliance with their modified terms:



December 31, 2015	Number of Contracts⁽¹⁾	Pre-Modification Recorded Balance		Post-Modification Outstanding Recorded Balance⁽¹⁾
Residential	2	$	143	$	143
Commercial business	5	1,426		1,426
Commercial real estate	3	374		374
Agricultural	10	8,830		8,830
Consumer	30	945		930
	50	$	11,718	$	11,703

June 30, 2015	Number of Contracts⁽²⁾	Pre-Modification Recorded Balance		Post-Modification Outstanding Recorded Balance⁽²⁾
Residential	2	$	148	$	148
Commercial business	5	2,234		2,234
Commercial real estate	5	712		712
Agricultural	8	8,045		8,045
Consumer	39	1,142		1,127
	59	$	12,281	$	12,266

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⁽¹⁾	Includes 19 customers, which are in compliance with their restructured terms, that are not accruing interest and have a recorded investment balance of $9,560.


⁽²⁾	Includes 18 customers, which are in compliance with their restructured terms, that are not accruing interest and have a recorded investment balance of $9,499.

Schedule of Troubled Debt Restructuring, Current Period

New TDRs initially classified as a TDR during the six months ended December 31, were as follows:



	2015					2014
	Number of Contracts	Pre-Modification Recorded Balance		Post-Modification Outstanding Recorded Balance		Number of Contracts	Pre-Modification Recorded Balance		Post-Modification Outstanding Recorded Balance
Commercial business	—	$	—	$	—	1	$	11	$	11
Agricultural	2	1,496		1,496		—	—		—
Consumer	4	200		200		15	425		425
	6	$	1,696	$	1,696	16	$	436	$	436