UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

 

FORM 10-Q

 

[X]	Quarterly Report Pursuant to Section 13 or 15 (d) or the Securities Exchange Act of 1934

 

For the quarterly period ended December 31, 2016

 

Or

 

[ ]          Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

 

for the transition period from                                                                    To                                                                

 

Commission File No. 033-79130

 

CONSUMERS BANCORP, INC.

(Exact name of registrant as specified in its charter)

 

OHIO	34-1771400
(State or other jurisdiction	(I.R.S. Employer Identification No.)
of incorporation or organization)
614 East Lincoln Way, P.O. Box 256, Minerva, Ohio	44657
(Address of principal executive offices)	(Zip Code)

 

(330) 868-7701

(Registrant’s telephone number)

 

Not applicable

(Former name, former address and former fiscal year, if changed since last report)

 

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

 

Indicate by check mark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).     Yes ☒     No ☐

 

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of “large accelerated filer,” “accelerated filer” and “smaller reporting company” in Rule 12b-2 of the Exchange Act.

 

Large accelerated filer ☐	Accelerated filer ☐
Non-accelerated filer ☐  (Do not check if smaller reporting company)	Smaller reporting company ☒

                     

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

 

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

 

CommonStock,no par value

Outstanding at February 10, 2017 2,724,956 Common Shares

    

 

  

CONSUMERS BANCORP, INC. FORM 10-Q QUARTER ENDED December 31, 2016
Table of Contents
		Page Number (s)
Part I – Financial Information
Item 1 – Financial Statements (Unaudited)
Consolidated Balance Sheets at December 31, 2016 and June 30, 2016		1
Consolidated Statements of Income for the three and six months ended December 31, 2016 and 2015		2
Consolidated Statements of Comprehensive Income for the three and six months ended December 31, 2016 and 2015		3
Consolidated Statements of Changes in Shareholders’ Equity for the three and six months ended December 31, 2016 and 2015		4
Condensed Consolidated Statements of Cash Flows for the six months ended December 31, 2016 and 2015		5
Notes to the Consolidated Financial Statements		6-30
Item 2 – Management’s Discussion and Analysis of Financial Condition and Results of Operations		31-40
Item 3 – Not Applicable for Smaller Reporting Companies
Item 4 – Controls and Procedures		41
Part II – Other Information
Item 1 – Legal Proceedings		42
Item 1A – Not Applicable for Smaller Reporting Companies
Item 2 – Unregistered Sales of Equity Securities and Use of Proceeds		42
Item 3 – Defaults Upon Senior Securities		42
Item 4 – Mine Safety Disclosure		42
Item 5 – Other Information		42
Item 6 – Exhibits		42
Signatures		43

 

 

PART I – FINANCIAL INFORMATION

Item 1 – Financial Statements

 

CONSUMERS BANCORP, INC.

CONSOLIDATED BALANCE SHEETS (Unaudited)

 

(Dollars in thousands, except per share data)		December 31, 2016				June 30, 2016
ASSETS
Cash on hand and noninterest-bearing deposits in financial institutions		$	8,139			$	8,164
Federal funds sold and interest-bearing deposits in financial institutions			2,711				2,017
Total cash and cash equivalents			10,850				10,181
Certificates of deposit in other financial institutions			4,916				5,906
Securities, available-for-sale			131,285				133,369
Securities, held-to-maturity (fair value of $4,293 at December 31, 2016 and $3,619 at June 30, 2016)			4,296				3,494
Federal bank and other restricted stocks, at cost			1,396				1,396
Loans held for sale			1,774				1,048
Total loans			264,804				256,278
Less allowance for loan losses			(3,123	)			(3,566	)
Net loans			261,681				252,712
Cash surrender value of life insurance			8,930				6,819
Premises and equipment, net			13,451				13,585
Accrued interest receivable and other assets			2,856				1,880
Total assets		$	441,435			$	430,390
LIABILITIES
Deposits
Non-interest bearing demand		$	100,161			$	98,224
Interest bearing demand			48,991				48,810
Savings			140,123				134,606
Time			66,170				65,008
Total deposits			355,445				346,648
Short-term borrowings			19,352				19,129
Federal Home Loan Bank advances			20,976				17,281
Accrued interest and other liabilities			3,452				3,539
Total liabilities			399,225				386,597
Commitments and contingent liabilities
SHAREHOLDERS’ EQUITY
Preferred stock (no par value, 350,000 shares authorized, none outstanding)			—				—
Common stock (no par value, 3,500,000 shares authorized; 2,854,133 shares issued as of December 31, 2016 and June 30, 2016)			14,630				14,630
Retained earnings			29,405				28,432
Treasury stock, at cost (130,606 and 130,375 common shares as of December 31, 2016 and June 30, 2016, respectively)			(1,662	)			(1,658	)
Accumulated other comprehensive income			(163	)			2,389
Total shareholders’ equity			42,210				43,793
Total liabilities and shareholders’ equity		$	441,435			$	430,390

 

 

See accompanying notes to consolidated financial statements

 

 

CONSUMERS BANCORP, INC.

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

 

		Three Months ended December 31,								Six Months ended December 31,
(Dollars in thousands, except per share amounts)		2016				2015				2016				2015
Interest income
Loans, including fees		$	3,022			$	2,789			$	6,206			$	5,584
Securities, taxable			377				488				779				945
Securities, tax-exempt			357				351				708				695
Federal funds sold and other interest bearing deposits			30				30				60				54
Total interest income			3,786				3,658				7,753				7,278
Interest expense
Deposits			183				171				353				347
Short-term borrowings			11				10				23				18
Federal Home Loan Bank advances			56				40				114				83
Total interest expense			250				221				490				448
Net interest income			3,536				3,437				7,263				6,830
Provision for loan losses			140				192				276				284
Net interest income after provision for loan losses			3,396				3,245				6,987				6,546
Non-interest income
Service charges on deposit accounts			314				320				644				634
Debit card interchange income			285				240				536				474
Bank owned life insurance income			63				49				112				95
Securities gains, net			22				—				125				35
Loss on disposition of other real estate owned			(3	)			—				(3	)			—
Other			116				113				231				219
Total non-interest income			797				722				1,645				1,457
Non-interest expenses
Salaries and employee benefits			1,790				1,746				3,528				3,478
Occupancy and equipment			478				352				930				694
Data processing expenses			145				143				290				287
Debit card processing expenses			149				115				282				231
Professional and director fees			146				177				278				274
FDIC assessments			46				70				101				128
Franchise taxes			84				83				168				165
Marketing and advertising			65				79				144				172
Telephone and network communications			76				75				157				150
Other			347				366				734				764
Total non-interest expenses			3,326				3,206				6,612				6,343
Income before income taxes			867				761				2,020				1,660
Income tax expense			145				122				397				294
Net income		$	722			$	639			$	1,623			$	1,366
Basic and diluted earnings per share		$	0.27			$	0.23			$	0.60			$	0.50

 

 

See accompanying notes to consolidated financial statements

 

 

CONSUMERS BANCORP, INC.

Consolidated statements of comprehensive income

(Unaudited)

 

 

 

(Dollars in thousands)		Three Months ended December 31,								Six Months ended December 31,
		2016				2015				2016				2015
Net income		$	722			$	639			$	1,623			$	1,366
Other comprehensive income (loss), net of tax:
Net change in unrealized gains (losses) on securities available-for-sale:
Unrealized gains (losses) arising during the period			(3,319	)			(410	)			(3,742	)			403
Reclassification adjustment for gains included in income			(22	)			—				(125	)			(35	)
Net unrealized gain (losses)			(3,341	)			(410	)			(3,867	)			368
Income tax effect			1,136				139				1,315				(125	)
Other comprehensive income (losses)			(2,205	)			(271	)			(2,552	)			243
Total comprehensive income (loss)		$	(1,483	)		$	368			$	(929	)		$	1,609

 

 

See accompanying notes to consolidated financial statements.

 

 

CONSUMERS BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

 

(Dollars in thousands, except per share data)		Three Months ended December 31,								Six Months ended December 31,
		2016				2015				2016				2015
Balance at beginning of period		$	44,020			$	42,379			$	43,793			$	41,466
Net income			722				639				1,623				1,366
Other comprehensive income (loss)			(2,205	)			(271	)			(2,552	)			243
231 Dividend reinvestment plan shares associated with forfeited and expired restricted stock awards retired to treasury stock during the six months ended December 31, 2016 and 27 and 275 shares during the three and six months ended December 31, 2015, respectively			—				—				—				—
Common cash dividends			(327	)			(327	)			(654	)			(655	)
Balance at the end of the period		$	42,210			$	42,420			$	42,210			$	42,420
Common cash dividends per share		$	0.12			$	0.12			$	0.24			$	0.24

 

 

See accompanying notes to consolidated financial statements.

 

 

CONSUMERS BANCORP, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

 

(Dollars in thousands)		Six Months Ended December 31,
		2016				2015
Cash flows from operating activities
Net cash from operating activities		$	2,152			$	2,068
Cash flow from investing activities
Securities available-for-sale
Purchases			(17,368	)			(14,993	)
Maturities, calls and principal pay downs			11,753				12,712
Proceeds from sales of available-for-sale securities			3,383				1,990
Securities held-to-maturity
Purchases			(1,000	)			—
Principal pay downs			198				125
Net (increase) decrease in certificates of deposits in other financial institutions			990				(945	)
Net increase in loans			(9,255	)			(12,649	)
Purchase of Bank owned life insurance			(2,000	)			—
Acquisition of premises and equipment			(252	)			(1,967	)
Sale of other real estate owned			7				—
Net cash from investing activities			(13,544	)			(15,727	)
Cash flow from financing activities
Net increase in deposit accounts			8,797				9,671
Net change in short-term borrowings			223				(184	)
Proceeds from Federal Home Loan Bank advances			18,325				4,700
Repayments of Federal Home Loan Bank advances			(14,630	)			(529	)
Dividends paid			(654	)			(655	)
Net cash from financing activities			12,061				13,003
Increase (decrease) in cash or cash equivalents			669				(656	)
Cash and cash equivalents, beginning of period			10,181				10,544
Cash and cash equivalents, end of period		$	10,850			$	9,888
Supplemental disclosure of cash flow information:
Cash paid during the period:
Interest		$	484			$	449
Federal income taxes			150				475
Non-cash items:
Transfer from loans to other real estate owned			10				38
Expired and forfeited dividend reinvestment plan shares associated with restricted stock awards that were retired to treasury stock			4				5

 

 

See accompanying notes to consolidated financial statements.

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

  

Note 1 – Summary of Significant Accounting Policies:

 

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, 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 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, 2016. 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 Information: The Corporation is a bank holding company engaged in the business of commercial and retail banking, which accounts for substantially all of the revenues, operating income, and assets. Accordingly, all of its operations are recorded in one segment, banking.

 

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.

 

Recently Issued Accounting Pronouncements Not Yet Effective: In June 2016, 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. GAAP, 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, that are SEC filers for fiscal years and for interim periods with 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. Management is currently evaluating the impact of the adoption of this guidance on the Corporation’s consolidated financial statements and it is too early to estimate any impact.

 

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

Note 2 – Securities

 

Available –for-Sale		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
December 31, 2016
Obligations of U.S. government-sponsored entities and agencies		$	10,081			$	69			$	(89	)		$	10,061
Obligations of state and political subdivisions			56,809				520				(668	)			56,661
Mortgage-backed securities – residential			56,055				294				(506	)			55,843
Mortgage-backed securities– commercial			1,472				—				(3	)			1,469
Collateralized mortgage obligations– residential			6,960				3				(132	)			6,831
Pooled trust preferred security			154				266				—				420
Total available-for-sale securities		$	131,531			$	1,152			$	(1,398	)		$	131,285

 

Held-to-Maturity		Amortized Cost				Gross Unrecognized Gains				Gross Unrecognized Losses				Fair Value
December 31, 2016
Obligations of state and political subdivisions		$	4,296			$	8			$	(11	)		$	4,293

 

Available–for-Sale		Amortized Cost				Gross Unrealized Gains				Gross Unrealized Losses				Fair Value
June 30, 2016
Obligations of U.S. government-sponsored entities and agencies		$	9,682			$	362			$	—			$	10,044
Obligations of state and political subdivisions			53,952				2,010				(8	)			55,954
Mortgage-backed securities – residential			58,702				920				(26	)			59,596
Mortgage-backed securities – commercial			1,485				41				—				1,526
Collateralized mortgage obligations - residential			5,774				49				(3	)			5,820
Pooled trust preferred security			153				276				—				429
Total available-for-sale securities		$	129,748			$	3,658			$	(37	)		$	133,369

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

Held-to-Maturity		Amortized Cost				Gross Unrecognized Gains				Gross Unrecognized Losses				Fair Value
June 30, 2016
Obligations of state and political subdivisions		$	3,494			$	125			$	—			$	3,619

 

Proceeds from the sale of available-for-sale securities were as follows:

 

		Three Months Ended December 31,								Six Months Ended December 31,
		2016				2015				2016				2015
Proceeds from sales		$	1,594			$	—			$	3,383			$	1,990
Gross realized gains			24				—				127				35
Gross realized losses			2				—				2				—

 

The income tax provision applicable to these net realized gains amounted to $8 and $43 for the three and six months ended December 31, 2016 and $12 for the six months ended December 31, 2015.

 

The amortized cost and fair values of debt securities at December 31, 2016, by expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, collateralized mortgage obligations and the pooled trust preferred security are shown separately.

 

Available-for-Sale		Amortized Cost				Estimated Fair Value
Due in one year or less		$	1,484			$	1,493
Due after one year through five years			17,504				17,684
Due after five years through ten years			26,182				26,174
Due after ten years			21,720				21,371
Total			66,890				66,722
U.S. Government-sponsored mortgage-backed and related securities			64,487				64,143
Pooled trust preferred security			154				420
Total available-for-sale securities		$	131,531			$	131,285
Held-to-Maturity
Due after five years through ten years			638				645
Due after ten years			3,658				3,648
Total held-to-maturity securities		$	4,296			$	4,293

 

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

The following table summarizes the securities with unrealized losses at December 31, 2016 and June 30, 2016, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

 

		Less than 12 Months								12 Months or more								Total
Available-for-sale		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
December 31, 2016
Obligations of US government-sponsored entities and agencies		$	6,303			$	(89	)		$	—			$	—			$	6,303			$	(89	)
Obligations of states and political subdivisions			28,565				(663	)			271				(5	)			28,836				(668	)
Mortgage-backed securities - residential			35,797				(449	)			3,197				(57	)			38,994				(506	)
Mortgage-backed securities - commercial			1,469				(3	)			—				—				1,469				(3	)
Collateralized mortgage obligations – residential816(1)——816(1)			5,590				(117	)			988				(15	)			6,578				(132	)
Total temporarily impaired		$	77,724			$	(1,321	)		$	4,456			$	(77	)		$	82,180			$	(1,398	)

 

		Less than 12 Months								12 Months or more								Total
Held-to-Maturity		Amortized Cost				Gross Unrecognized Loss				Amortized Cost				Gross Unrecognized Loss				Amortized Cost				Gross Unrecognized Loss
December 31, 2016
Obligations of states and political subdivisions		$	933			$	(11	)		$	—			$	—			$	933			$	(11	)
Total temporarily impaired		$	933			$	(11	)		$	—			$	—			$	933			$	(11	)

 

		Less than 12 Months								12 Months or more								Total
Available-for-sale		Fair Value				Unrealized Loss				Fair Value				Unrealized Loss				Fair Value				Unrealized Loss
June 30, 2016
Obligations of states and political subdivisions		$	572			$	(6	)		$	641			$	(2	)		$	1,213			$	(8	)
Mortgage-backed securities - residential			4,899				(12	)			4,836				(14	)			9,735				(26	)
Collateral mortgage obligation - residential			—				—				1,212				(3	)			1,212				(3	)
Total temporarily impaired		$	5,471			$	(18	)		$	6,689			$	(19	)		$	12,160			$	(37	)

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

Management evaluates securities for other-than-temporary impairment (OTTI) on a quarterly basis, and more frequently when economic or market conditions warrant such an evaluation. The securities portfolio is evaluated for OTTI by segregating the portfolio into two general segments and applying the appropriate OTTI model. Investment securities are generally evaluated for OTTI under FASB ASC Topic 320, Accounting for Certain Investments in Debt and Equity Securities.

 

In determining OTTI under the ASC Topic 320 model, management considers many factors, including: (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, (3) whether the market decline was affected by macroeconomic conditions, and (4) whether the entity has the intent to sell the debt security or more likely than not will be required to sell the debt security before its anticipated recovery. The assessment of whether an other-than-temporary decline exists involves a high degree of subjectivity and judgment and is based on the information available to management at a point in time.

 

The unrealized losses within the securities portfolio as of December 31, 2016 have not been recognized into income because the decline in fair value is not attributed to credit quality, management does not intend to sell and it is likely that management will not be required to sell the securities prior to their anticipated recovery. The decline in fair value within the securities portfolio is largely due to changes in interest rates and the fair value is expected to recover as the securities approach maturity. The mortgage-backed securities and collateralized mortgage obligations were primarily issued by Fannie Mae, Freddie Mac and Ginnie Mae, institutions which the government has affirmed its commitment to support. The Corporation does not own any private label mortgage-backed securities.

 

Note 3 – Loans

 

Major classifications of loans were as follows:

 

		December 31, 2016				June 30, 2016
Commercial		$	41,938			$	43,156
Commercial real estate:
Construction			8,831				7,755
Other			153,563				152,766
1 – 4 Family residential real estate:
Owner occupied			37,652				31,091
Non-owner occupied			14,489				14,438
Construction			2,981				1,269
Consumer			5,350				5,803
Subtotal			264,804				256,278
Allowance for loan losses			(3,123	)			(3,566	)
Net Loans		$	261,681			$	252,712

 

Loans presented above are net of deferred loan fees and costs of $310 and $360 for December 31, 2016 and June 30, 2016, respectively.

 

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2016:

 

										1-4 Family
						Commercial				Residential
						Real				Real
		Commercial				Estate				Estate				Consumer				Total
Allowance for loan losses:
Beginning balance		$	510			$	2,643			$	411			$	120			$	3,684
Provision for loan losses			(14	)			157				51				(54	)			140
Loans charged-off			—				(700	)			(23	)			(8	)			(731	)
Recoveries			1				—				26				3				30
Total ending allowance balance		$	497			$	2,100			$	465			$	61			$	3,123

 

 

The following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December 31, 2016:

  

										1-4 Family
						Commercial				Residential
						Real				Real
		Commercial				Estate				Estate				Consumer				Total
Allowance for loan losses:
Beginning balance		$	505			$	2,518			$	402			$	141			$	3,566
Provision for loan losses			(9	)			282				78				(75	)			276
Loans charged-off			—				(700	)			(44	)			(12	)			(756	)
Recoveries			1				—				29				7				37
Total ending allowance balance		$	497			$	2,100			$	465			$	61			$	3,123

 

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

The following table presents the activity in the allowance for loan losses by portfolio segment for the three months ended December 31, 2015:

 

										1-4 Family
						Commercial				Residential
						Real				Real
		Commercial				Estate				Estate				Consumer				Total
Allowance for loan losses:
Beginning balance		$	387			$	1,727			$	278			$	122			$	2,514
Provision for loan losses			10				3				149				30				192
Loans charged-off			—				(2	)			(120	)			(33	)			(155	)
Recoveries			—				—				—				4				4
Total ending allowance balance		$	397			$	1,728			$	307			$	123			$	2,555

 

The following table presents the activity in the allowance for loan losses by portfolio segment for the six months ended December 31, 2015:

  

										1-4 Family
						Commercial				Residential
						Real				Real
		Commercial				Estate				Estate				Consumer				Total
Allowance for loan losses:
Beginning balance		$	316			$	1,660			$	289			$	167			$	2,432
Provision for loan losses			81				73				138				(8	)			284
Loans charged-off			—				(5	)			(120	)			(51	)			(176	)
Recoveries			—				—				—				15				15
Total ending allowance balance		$	397			$	1,728			$	307			$	123			$	2,555

 

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of December 31, 2016. Included in the recorded investment in loans is $614 of accrued interest receivable.

  

										1-4 Family
						Commercial				Residential
						Real				Real
		Commercial				Estate				Estate				Consumer				Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment		$	4			$	56			$	2			$	—			$	62
Collectively evaluated for impairment			493				2,044				463				61				3,061
Total ending allowance balance		$	497			$	2,100			$	465			$	61			$	3,123
Recorded investment in loans:
Loans individually evaluated for impairment		$	41			$	1,482			$	427			$	—			$	1,950
Loans collectively evaluated for impairment			41,992				161,271				54,843				5,362				263,468
Total ending loans balance		$	42,033			$	162,753			$	55,270			$	5,362			$	265,418

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

The following table presents the balance in the allowance for loan losses and the recorded investment in loans by portfolio segment and based on impairment method as of June 30, 2016. Included in the recorded investment in loans is $549 of accrued interest receivable net of deferred loans fees and cost of $360.

 

										1-4 Family
						Commercial				Residential
						Real				Real
		Commercial				Estate				Estate				Consumer				Total
Allowance for loan losses:
Ending allowance balance attributable to loans:
Individually evaluated for impairment		$	—			$	868			$	6			$	—			$	874
Collectively evaluated for impairment			505				1,650				396				141				2,692
Total ending allowance balance		$	505			$	2,518			$	402			$	141			$	3,566
Recorded investment in loans:
Loans individually evaluated for impairment		$	1,029			$	5,105			$	758			$	—			$	6,892
Loans collectively evaluated for impairment			42,219				155,734				46,166				5,816				249,935
Total ending loans balance		$	43,248			$	160,839			$	46,924			$	5,816			$	256,827

 

 

CONSUMERS BANCORP, INC.

Notes to the Consolidated Financial Statements

(Unaudited) (continued)

 

(Dollars in thousands, except per share amounts)

 

The following table presents information related to average recorded investment and interest income associated with loans individually evaluated for impairment by class of loans as of December 31, 2016 and for the six months ended December 31, 2016:

 

		As of December 31, 2016												Six Months ended December 31, 2016
		Unpaid								Allowance for				Average				Interest				Cash Basis
		Principal				Recorded				Loan Losses				Recorded				Income				Interest
		Balance				Investment				Allocated				Investment				Recognized				Recognized
With no related allowance recorded:
Commercial		$	—			$	—			$	—			$	330			$	80			$	80
Commercial real estate:
Construction			7				7				—				170				6				6
Other			1,779				891				—				1,081				105				105
1-4 Family residential real estate:
Owner occupied			127