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June 30, 2013

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Document and Entity Information - USD ($)	12 Months Ended
Document and Entity Information - USD ($)	Jun. 30, 2013	Sep. 16, 2013	Dec. 31, 2012
Document and Entity Information
Entity Registrant Name	NORTHEAST BANCORP /ME/
Entity Central Index Key	0000811831
Document Type	10-K
Document Period End Date	Jun. 30, 2013
Amendment Flag	false
Current Fiscal Year End Date	--06-30
Entity Well-known Seasoned Issuer	No
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Smaller Reporting Company
Entity Public Float			$ 65,996,772
Document Fiscal Year Focus	2013
Document Fiscal Period Focus	FY
Voting common stock
Document and Entity Information
Entity Common Stock, Shares Outstanding		9,552,587
Non-voting common stock
Document and Entity Information
Entity Common Stock, Shares Outstanding		880,963

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Assets
Cash and due from banks	$ 3,238	$ 2,538
Short-term investments	62,696	125,736
Total cash and cash equivalents	65,934	128,274
Available-for-sale securities, at fair value	121,597	133,264
Loans held for sale	8,594	9,882
Loans	435,376	356,254
Less: Allowance for loan losses	1,143	824
Loans, net	434,233	355,430
Premises and equipment, net	10,075	9,205
Real estate owned and other possessed collateral, net	2,134	834
Federal Home Loan Bank and Federal Reserve Bank stock, at cost	5,721	5,473
Intangible assets, net	3,544	4,487
Bank owned life insurance	14,385	14,295
Other assets	4,422	8,052
Total assets	670,639	669,196
Deposits:
Noninterest bearing	46,425	45,323
Interest bearing	438,198	376,865
Total deposits	484,623	422,188
Federal Home Loan Bank advances	28,040	43,450
Wholesale repurchase agreements	25,397	66,183
Short-term borrowings	625	1,209
Junior subordinated debentures issued to affiliated trusts	8,268	8,106
Capital lease obligation	1,739	1,911
Other liabilities	8,145	7,010
Total liabilities	556,837	550,057
Commitments and contingencies
Stockholders' equity
Preferred stock, $1.00 par value, 1,000,000 shares authorized; no shares issued and outstanding at June 30, 2013; 4,227 shares issued and outstanding at June 30, 2012; liquidation preference of $1,000 per share		4
Additional paid-in capital	92,745	96,359
Retained earnings	12,524	12,235
Accumulated other comprehensive (loss) income	(1,914)	158
Total stockholders' equity	113,802	119,139
Total liabilities and stockholders' equity	670,639	669,196
Voting common stock
Stockholders' equity
Common stock	9,566	9,307
Total stockholders' equity	9,566	9,307
Non-voting common stock
Stockholders' equity
Common stock	881	1,076
Total stockholders' equity	$ 881	$ 1,076

CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares	Jun. 30, 2013	Jun. 30, 2012
Preferred stock, par value (in dollars per share)	$ 1.00	$ 1.00
Preferred stock, shares authorized	1,000,000	1,000,000
Preferred stock, shares issued	0	4,227
Preferred stock, shares outstanding	0	4,227
Preferred stock, liquidation preference per share (in dollars per share)	$ 1,000	$ 1,000
Voting common stock
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	25,000,000	13,500,000
Common stock, issued	9,565,680	9,307,127
Common stock, outstanding	9,565,680	9,307,127
Non-voting common stock
Common stock, par value (in dollars per share)	$ 1.00	$ 1.00
Common stock, shares authorized	3,000,000	1,500,000
Common stock, issued	880,963	1,076,314
Common stock, outstanding	880,963	1,076,314

CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Interest and dividend income:
Interest on loans	$ 35,017	$ 24,734
Interest and dividends on available-for-sale securities	1,138	2,019
Other interest and dividend income	388	261
Total interest and dividend income	36,543	27,014
Interest expense:
Deposits	4,098	3,426
Federal Home Loan Bank advances	967	1,028
Wholesale repurchase agreements	651	991
Short-term borrowings	19	21
Junior subordinated debentures issued to affiliated trusts	769	751
Obligation under capital lease agreement	92	100
Total interest expense	6,596	6,317
Net interest and dividend income before provision for loan losses	29,947	20,697
Provision for loan losses	1,122	946
Net interest and dividend income after provision for loan losses	28,825	19,751
Noninterest income:
Fees for other services to customers	1,648	1,383
Net securities gains	792	1,111
Gain on sales of loans held for sale	3,009	2,761
Gain on sales of portfolio loans	2,311	1,071
Gain (loss) recognized on real estate owned and other repossessed collateral, net	746	(5)
Investment commissions	2,919	2,782
Bank-owned life insurance income	718	501
Other noninterest income	82	72
Total noninterest income	12,225	9,676
Noninterest expense:
Salaries and employee benefits	19,218	15,634
Occupancy and equipment expense	4,766	3,826
Professional fees	1,634	1,708
Data processing fees	1,141	1,088
Marketing expense	1,049	691
Loan acquisition and collection expense	1,766	1,106
FDIC insurance premiums	454	482
Intangible asset amortization	943	1,198
Legal settlement expense	980
Other noninterest expense	2,734	2,497
Total noninterest expense	34,685	28,230
Income from continuing operations before income tax expense	6,365	1,197
Income tax expense	1,945	181
Net income from continuing operations	4,420	1,016
Income from discontinued operations		186
Gain on sale of discontinued operations		1,566
Income tax expense		605
Net income from discontinued operations		1,147
Net income	4,420	2,163
Net income available to common stockholders	$ 4,065	$ 1,771
Weighted-average shares outstanding:
Basic (in shares)	10,409,588	4,277,777
Diluted (in shares)	10,409,588	4,291,352
Basic:
Income from continuing operations (in dollars per share)	$ 0.39	$ 0.15
Income from discontinued operations (in dollars per share)		0.26
Net income (in dollars per share)	0.39	0.41
Diluted:
Income from continuing operations (in dollars per share)	0.39	0.15
Income from discontinued operations (in dollars per share)		0.26
Net income (in dollars per share)	0.39	0.41
Cash dividends declared per common share: (in dollars per share)	$ 0.36	$ 0.36

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
Net income	$ 4,420	$ 2,163
Available-for-sale securities:
Change in net unrealized gain or loss on available-for-sale securities	(2,469)	1,896
Reclassification adjustment for net gains included in net income	(792)	(1,111)
Total available-for-sale securities	(3,261)	785
Derivatives and hedging activities:
Change in accumulated loss on effective cash flow hedges	192	(122)
Reclassification adjustments for net gains included in net income	(70)	(80)
Total derivatives and hedging activities	122	(202)
Total other comprehensive (loss) income, before tax	(3,139)	583
Income tax (benefit) expense related to other comprehensive (loss) income	(1,067)	199
Other comprehensive (loss) income, net of tax	(2,072)	384
Comprehensive income	$ 2,348	$ 2,547

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Total	Voting Common Stock	Non-voting Common Stock	Preferred Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)
Balance at Jun. 30, 2011	$ 64,954	$ 3,312	$ 195	$ 4	$ 49,943	$ 11,726	$ (226)
Balance (in shares) at Jun. 30, 2011		3,312,173	195,351	4,227
Net income	2,163					2,163
Other comprehensive income, net of tax	384						384
Issuance of common stock	52,667	$ 5,995	$ 881		45,791
Issuance of common stock (in shares)		5,994,954	880,963
Dividends on preferred stock	(212)					(212)
Dividends on common stock at $0.36 per share for the period ended June 30, 2013 and 2012, respectively	(1,262)					(1,262)
Stock-based compensation	445				445
Accretion of preferred stock					180	(180)
Balance at Jun. 30, 2012	119,139	$ 9,307	$ 1,076	$ 4	96,359	12,235	158
Balance (in shares) at Jun. 30, 2012		9,307,127	1,076,314	4,227
Net income	4,420					4,420
Other comprehensive income, net of tax	(2,072)						(2,072)
Conversion of non-voting common stock to voting common stock		$ 195	$ (195)
Conversion of non-voting common stock to voting common stock (in shares)		195,351	(195,351)
Stock offering costs	(59)				(59)
Issuance of restricted common stock		$ 64			(64)
Issuance of restricted common stock (in shares)		63,202
Dividends on preferred stock	(113)					(113)
Dividends on common stock at $0.36 per share for the period ended June 30, 2013 and 2012, respectively	(3,750)					(3,750)
Stock-based compensation	563				563
Redemption of preferred stock and warrants	(4,326)			$ (4)	(4,322)
Redemption of preferred stock and warrants (in shares)				(4,227)
Accretion of preferred stock					268	(268)
Balance at Jun. 30, 2013	$ 113,802	$ 9,566	$ 881		$ 92,745	$ 12,524	$ (1,914)
Balance (in shares) at Jun. 30, 2013		9,565,680	880,963

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY
Dividends on common stock (in dollars per share)	$ 0.36	$ 0.36

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Operating activities:
Net income	$ 4,420	$ 2,163
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Provision for loan losses	1,122	946
(Gain) loss on sale or impairment of repossessed collateral, net	(746)	5
Originations of loans held for sale	(141,870)	(126,130)
Net proceeds from sales of loans held for sale	146,167	124,185
Gain on sales of loans held for sale	(3,009)	(2,761)
Gain on sales of portfolio loans	(2,311)	(1,071)
Amortization of intangible assets	943	1,266
Bank-owned life insurance income, net	(718)	(501)
Depreciation of premises and equipment	1,745	1,299
Loss on disposition of premises and equipment	12	4
Net gain on sale of available-for-sale securities	(792)	(1,111)
Deferred income tax (benefit) provision	(428)	1,827
Stock-based compensation	563	445
Gain on sale of assets of insurance division		(1,566)
Amortization of securities, net	1,710	1,671
Changes in other assets and liabilities:
Other assets	3,630	(1,253)
Other liabilities	2,834	693
Net cash provided by (used in) operating activities	1,323	(6,974)
Investing activities:
Proceeds from sales of available-for-sale securities	159,579	179,045
Purchases of available-for-sale securities	(167,294)	(185,991)
Proceeds from maturities and principal payments on available-for-sale securities	15,203	22,869
Loan purchases	(121,336)	(101,779)
Loan originations and principal collections, net	42,217	50,333
Purchases of premises and equipment	(2,897)	(2,565)
Proceeds from sales of premises and equipment		163
Proceeds from sales of portfolio loans	7,140	8,284
Proceeds from sales of real estate owned and other repossessed collateral	3,925	826
Proceeds from life insurance benefits	628
(Purchase) redemption of regulatory stock, net	(248)	287
Proceeds from sale of assets of insurance division		9,889
Net cash used in investing activities	(63,083)	(18,639)
Financing activities:
Net increase in deposits	63,424	22,362
Net decrease short-term borrowings	(584)	(1,306)
Dividends paid on preferred stock	(113)	(212)
Dividends paid on common stock	(3,750)	(1,262)
Net proceeds from issuance of common stock	(59)	52,667
Repayment of FHLB borrowings and wholesale repurchase agreements	(55,000)
Repayment of other borrowings		(2,129)
Redemption of preferred stock and warrants	(4,326)
Repayment of capital lease obligation	(172)	(164)
Net cash (used in) provided by financing activities	(580)	69,956
Net (decrease) increase in cash and cash equivalents	(62,340)	44,343
Cash and cash equivalents, beginning of year	128,274	83,931
Cash and cash equivalents, end of year	65,934	128,274
Supplemental schedule of cash flow information:
Interest paid	8,751	9,774
Income taxes paid, net	954	321
Supplemental schedule of noncash investing and financing activities:
Transfers from loans to real estate owned and other repossessed collateral	5,264	1,019
Transfers from real estate owned to loans	1,055	44
Loans
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion of fair value adjustments, net	(9,926)	(3,642)
Deposits
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion of fair value adjustments, net	(989)	(1,292)
Borrowings
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Accretion of fair value adjustments, net	$ (1,034)	$ (2,151)

Summary of Significant Accounting Policies	12 Months Ended
Summary of Significant Accounting Policies	Jun. 30, 2013
Summary of Significant Accounting Policies
Summary of Significant Accounting Policies	1. Summary of Significant Accounting Policies The accounting and reporting policies of Northeast Bancorp and Subsidiary (“Company” or “Northeast”) conform to accounting principles generally accepted in the United States of America (“GAAP”) and conform to practices within the financial services industry. Business The Company is a Maine corporation and a bank holding company registered with the Federal Reserve Bank of Boston (“FRB”) under the Bank Holding Company Act of 1956. The Company provides a full range of banking services to individual and corporate customers throughout south-central and western Maine and conducts loan purchasing activities nationwide through its wholly-owned subsidiary, Northeast Bank (the “Bank”), a Maine state-chartered universal bank and a member of the Federal Reserve Bank of Boston. As a result, the Bank is subject to the joint regulatory oversight by the FRB and the State of Maine Bureau of Financial Institutions. The Bank is also subject to the regulations of the Federal Deposit Insurance Corporation (“FDIC”). The Bank faces competition from banks and other financial institutions. Business Combination Accounting On December 29, 2010, the Company merged with FHB Formation LLC (the “Merger”). The Company applied the acquisition method of accounting to this business combination, which represented an acquisition by FHB Formation LLC (“FHB”) of Northeast, with Northeast as the surviving company. Under the acquisition method, the acquiring entity in a business combination recognizes the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. In the Merger, amounts allocated to assets acquired and liabilities assumed were greater than the purchase price, which resulted in the recognition of a bargain purchase gain. Acquisition-related costs were expensed as incurred. Principles of Consolidation The accompanying consolidated financial statements include the accounts of Northeast Bancorp, and its wholly-owned subsidiary, Northeast Bank (including the Bank’s wholly-owned subsidiaries). All significant intercompany transactions and balances have been eliminated in consolidation. NBN Capital Trust II, NBN Capital Trust III and NBN Capital Trust IV are considered affiliates and are deconsolidated pursuant to criteria established by Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). The investments in these affiliates were $496 thousand in aggregate and are included in other assets. Reclassifications Certain previously reported amounts have been reclassified to conform to the current year’s presentation. Use of Estimates The financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the statement of financial condition and income and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the determination of fair values in conjunction with the application of acquisition accounting, and the on-going evaluation of assets for potential impairment. Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the State of Maine. However, the Company’s loan purchasing activities are diversified across the country. In all regions, the Company has emphasized the origination and purchase of commercial real estate loans. Repayment of loans is expected to come from cash flows of the borrower. Losses on secured loans are limited by the value of the collateral upon default of the borrowers. The Company does not have any significant concentrations to any one industry or customer. Cash and Cash Equivalents For purposes of presentation in the consolidated statements of cash flow, cash and cash equivalents consist of cash and due from banks and short-term investments. The Company is required to maintain a certain reserve balance in the form of cash or deposits with other financial institutions. At June 30, 2013 and 2012, such reserve balances totaled $5.3 million and $3.8 million, respectively. Investment Securities Securities for which the Company has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Those securities held for indefinite periods of time but not necessarily to maturity are classified as available for sale. Securities held for indefinite periods of time include securities that management intends to use as part of its asset/liability, liquidity, or capital management strategies and may be sold in response to changes in interest rates, maturities, asset/liability mix, liquidity needs, regulatory capital needs or other business factors. Securities available for sale are carried at estimated fair value with unrealized gains and losses reported on an after-tax basis in stockholders’ equity as accumulated other comprehensive income or loss. Interest and dividends on securities are recorded on the accrual method. Premiums and discounts on securities are amortized or accreted into interest income by the level-yield method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities. These estimates of prepayment assumptions are made based upon the actual performance of the underlying security, current interest rates, the general market consensus regarding changes in mortgage interest rates, the contractual repayment terms of the underlying loans, the priority rights of the investors to the cash flows from the mortgage securities and other economic conditions. When differences arise between anticipated prepayments and actual prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. Unamortized premium or discount is adjusted to the amount that would have existed had the new effective yield been applied since purchase, with a corresponding charge or credit to interest income. Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and are recorded in non-interest income. Management evaluates securities for other-than-temporary impairment on a periodic basis. Factors considered in determining whether an impairment is other-than-temporary include: (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 and (3) the intent and ability of the Company to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income. Federal Home Loan Bank and Federal Reserve Bank Stock The Company owns investments in the stock of the FRB and the Federal Home Loan Bank of Boston (“FHLBB”). No ready market exists for these stocks, and they have no quoted market values. FRB stock is redeemable at par; therefore, fair value equals cost. The Bank, as a member of the FHLBB, is required to maintain investments in the capital stock of the FHLBB equal to their membership base investments plus an activity-based investment determined according to the Bank’s level of outstanding FHLBB advances. The Company reviews its investments in FHLBB and FRB stock periodically to determine if other-than-temporary impairment exists. The Company reviews recent public filings, rating agency analysis and other factors, when making the determination. Loans Held for Sale and Loan Servicing Residential real estate mortgage loans are designated as held for sale based on intent, which is determined when loans are underwritten. Loans originated and held for sale in the secondary market are carried at the lower of cost or fair value. Realized gains and losses on sales of loans are determined using the specific identification method. Direct loan originations costs and fees related to loans held for sale are deferred upon origination and are recognized on the date of sale. In its mortgage banking activities, the Company sells loans both on a servicing released and servicing retained basis. The Company recognizes as separate assets the rights to service mortgage loans for others, and performs an assessment of capitalized mortgage servicing rights for impairment based on the current fair value of those rights. The Company capitalizes mortgage servicing rights at their allocated cost (based on the relative fair values of the rights and the related loans) upon the sale of the related loans. Mortgage servicing rights are amortized over the estimated weighted average life of the loans. The Company’s assumptions with respect to prepayments, which affect the estimated average life of the loans, are adjusted periodically to reflect current circumstances. The Company evaluates the estimated life and fair value of its servicing portfolio based on data that is disaggregated to reflect note rate, type, and term on the underlying loans. In connection with loans to be held for sale, the Company often offers interest rate lock commitments to prospective borrowers. The Company manages this interest rate risk by entering into offsetting forward sale agreements with third party investors for certain funded loans and loan commitments. The Company uses “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments. Loans Loans are carried at the principal amounts outstanding, or amortized acquired fair value in the case of acquired loans, adjusted by partial charge-offs and net of deferred loan costs or fees. Loan fees and certain direct origination costs are deferred and amortized into interest income over the expected term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. Interest income is accrued based upon the daily principal amount outstanding except for loans on nonaccrual status. All loans purchased by the Company in the secondary market by the Bank’s Loan Acquisition and Servicing Group (“LASG”) are accounted for under ASC 310-30, Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). At acquisition, the effective interest rate is determined based on the discount rate that equates the present value of the Company’s estimate of cash flows with the purchase price of the loan. Prepayments are not assumed in determining a purchased loan’s effective interest rate and income accretion. The application of ASC 310-30 limits the yield that may be accreted on the purchased loan, or the “accretable yield,” to the excess of the Company’s estimate, at acquisition, of the expected undiscounted principal, interest, and other cash flows over the Company’s initial investment in the loan. The excess of contractually required payments receivable over the cash flows expected to be collected on the loan represents the purchased loan’s “nonaccretable difference.” Subsequent improvements in expected cash flows of loans with nonaccretable differences result in a prospective increase to the loan’s effective yield through a reclassification of some, or all, of the nonaccretable difference to accretable yield. The effect of subsequent declines in expected cash flows of purchased loans are recorded through a specific allocation in the allowance for loan losses. Loans are generally placed on nonaccrual status when they are past due 90 days as to either principal or interest, or when in management’s judgment the collectability of interest or principal of the loan has been significantly impaired. Loans accounted for under ASC 310-30 are placed on nonaccrual when it is not possible to reach a reasonable expectation of the timing and amount of cash flows to be collected on the loan. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. Interest on nonaccrual loans is accounted for on a cash-basis or using the cost-recovery method when collectability is doubtful. A loan is returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a reasonable period of time. In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructuring (“TDR”). Concessionary modifications may include adjustments to interest rates, extensions of maturity, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. For loans accounted for under ASC 310-30, the Company evaluates whether it has granted a concession by comparing the restructured debt terms to the expected cash flows at acquisition plus any additional cash flows expected to be collected arising from changes in estimate after acquisition. As a result, if an ASC 310-30 loan is modified to be consistent with, or better than, the Company’s expectations at acquisition, the loan would not qualify as a TDR. Nonaccrual loans that are restructured generally remain on nonaccrual for a minimum period of six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a nonaccrual loan. With limited exceptions, loans classified as TDRs remain classified as such until the loan is paid off. Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. For residential and consumer loans, a charge-off is recorded no later than 180 days past due if the loan balance exceeds the fair value of the collateral, less costs to sell. For commercial loans, a charge-off is recorded on a case-by-case basis when all or a portion of the loan is deemed to be uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses consists of general, specific, and unallocated reserves and reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for loan losses on a quarterly basis. The calculation of the allowance for loan losses is segregated by portfolio segments, which include: commercial real estate, commercial business, consumer, residential real estate, and purchased loans. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate: All loans in this segment are collateralized by residential real estate and repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, particularly unemployment rates and housing prices, has a significant effect on the credit quality in this segment. For purposes of the Company’s allowance for loan loss calculation, home equity loans and lines of credit are included in residential real estate. Commercial real estate: Loans in this segment are primarily income-producing properties. For owner-occupied properties, the cash flows are derived from an operating business, and the underlying cash flows may be adversely affected by deterioration in the financial condition of the operating business. The underlying cash flows generated by non-owner occupied properties may be adversely affected by increased vacancy rates. Management periodically obtains rent rolls, with which it monitors the cash flows of these loans. Adverse developments in either of these areas will have an adverse effect on the credit quality of this segment. For purposes of the allowance for loan losses, this segment also includes construction loans. Commercial business: Loans in this segment are made to businesses and are generally secured by the assets of the business. Repayment is expected from the cash flows of the business. Continued weakness in national or regional economic conditions, and a corresponding weakness in consumer or business spending, will have an adverse effect on the credit quality of this segment. Consumer: Loans in this segment are generally secured, and repayment is dependent on the credit quality of the individual borrower. Repayment of consumer loans is generally based on the earnings of individual borrowers, which may be adversely impacted by regional labor market conditions. Purchased: Loans in this segment are secured by commercial real estate, multi-family residential real estate, or business assets and have been acquired by the LASG. Loans acquired by the LASG are, with limited exceptions, performing loans at the date of purchase. Loans in this segment acquired with specific material credit deterioration since origination are identified as purchased credit-impaired. Repayment of loans in this segment is largely dependent on cash flow from the successful operation of the property, in the case of non-owner occupied property, or operating business, in the case of owner-occupied property. Loan performance may be adversely affected by factors affecting the general economy or conditions specific to the real estate market, such as geographic location or property type. Loans in this segment are evaluated for impairment under ASC 310-30. The Company reviews expected cash flows from purchased loans on a quarterly basis. The effect of a decline in expected cash flows subsequent to the acquisition of the loan is recognized through a specific allocation in the allowance for loan losses. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segment. The Company does not weight periods used in that analysis to determine the average loss rate in each portfolio segment. This historical loss factor is adjusted for the following qualitative factors: · Levels and trends in delinquencies · Trends in the volume and nature of loans · Trends in credit terms and policies, including underwriting standards, procedures and practices, and the experience and ability of lending management and staff · Trends in portfolio concentration · National and local economic trends and conditions. · Effects of changes or trends in internal risk ratings · Other effects resulting from trends in the valuation of underlying collateral There were no significant changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during the years ended June 30, 2013 or 2012. The allocated component of the allowance for loan losses relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial business and commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment based on the group’s historical loss experience adjusted for qualitative factors. Accordingly, the Company does not separately identify individual consumer and residential loans for individual impairment and disclosure. However, all loans modified in troubled debt restructurings are individually reviewed for impairment. For all portfolio segments, except the purchased loan segment, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For the purchased loan segment, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to realize cash flows as estimated at acquisition. Loan impairment of purchased loans is measured based on the decrease in expected cash flows from those estimated at acquisition, excluding changes due to decreases in interest rate indices, discounted at the loan’s effective rate assumed at acquisition. Factors considered by management in determining impairment include payment status, collateral value, and the probability of the collecting scheduled principal and interest payments when due. Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Premises and equipment under capital leases are amortized over the estimated useful lives of the assets or the respective lease terms, whichever is shorter. Maintenance and repairs are charged to expense as incurred and the cost of major renewals and betterments are capitalized. Intangible Assets Identifiable intangible assets subject to amortization are amortized over the estimated lives of the intangibles using a method that approximates the amount of economic benefits that are realized by the Company. Identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable. Real Estate Owned and Other Repossessed Collateral Assets in control of the Company or acquired through foreclosure or repossession are held for sale and are initially recorded at fair value less cost to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated cost to sell) of the foreclosed asset is charged to the allowance for loan losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance or through a direct write-off. Subsequent increases in the fair value may only be recorded to the extent of any previously recognized valuation allowance. Rental revenue received on foreclosed assets is included in other noninterest income, whereas operating expenses and changes in the valuation allowance relating to foreclosed assets are included in other noninterest expense. Impairment of Long-Lived Assets The Company reviews long-lived assets, including premises and equipment, for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal. Bank Owned Life Insurance Increases in the cash surrender value of life insurance policies, as well as death benefits received net of any cash surrender value, are recorded in other noninterest income, and are not subject to income taxes. The cash surrender value of the policies not previously endorsed to participants are recorded as assets of the Company. Any amounts owed to participants relating to these policies are recorded as liabilities of the Company. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter. Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company’s policy is to recognize interest and penalties assessed on tax positions in income tax expense. Advertising Expense Advertising costs are expensed as incurred. Stock-Based Compensation The Company’s stock-based compensation plans provide for awards of stock options, restricted stock and other stock-based compensation to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses the Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards. Discontinued Operations During the first quarter of fiscal 2012, substantially all of the assets of the Company’s insurance division, Northeast Bank Insurance Group, Inc. (“NBIG”) were sold in two separate transactions. The results of NBIG are classified as discontinued operations in the statements of income for each period presented. The Company has eliminated all intercompany transactions related to discontinued operations for each period presented. Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, unrealized losses related to factors other than credit on debt securities, unrealized gains and losses on cash flow hedges and deferred gains on hedge accounting transactions. Earnings Per Share Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method. Derivatives Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income, net of related tax, and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period. For derivative instruments designated and qualifying as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or liability or an identified portion thereof that is attributable to the hedged risk), the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings during the period of the change in fair values. For derivative instruments not designated as hedging instruments, the gain or loss on the derivative is recognized in current earnings during the period of change. At the inception of a hedge, the Company documents certain items, including but not limited to the following: the relationship between hedging instruments and hedged items, Company risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions. Hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is sold, (3) a derivative is de-designated as a hedge, because it is unlikely that a forecasted transaction will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate. Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. Recent Accounting Pronouncements In December 2011, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). The update requires entities to disclose information about offsetting and related arrangements of financial instruments and derivative instruments. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current literature or (ii) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current literature. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company does not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements. In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (“ASU 2011-05”). The objective of this update is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments in this update require that all non-owner changes in stockholders’ equity be presented either in as single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments are effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the consolidated financial statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. The amendments in this update defer those changes in ASU 2011-05 that relate to the presentation of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. All other requirements in ASU 2011-05 are not affected by this update. The amendments are effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the consolidated financial statements. In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01). The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The new standards are effective for annual periods beginning January 1, 2013 and for interim periods within those annual periods. Retrospective application is required. The Company does not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements. In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income (“ASU 2013-02”). This ASU requires entities to (1) present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income—but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period and (2) cross-reference to other disclosures currently required under GAAP for other reclassification items (that are not required under GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly to income or expense. The new standards are effective for reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s financial statements.

Available-for-sale Securities

12 Months Ended

Jun. 30, 2013

Available-for-sale Securities

Available-for-sale Securities

2. Available-for-sale Securities

Securities available-for-sale at amortized cost and approximate fair values are summarized below:

	June 30, 2013				June 30, 2012
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars in thousands)
U.S. Government agency securities	$	45,289	$	45,333	$	45,824	$	45,808
Agency mortgage-backed securities	78,944		76,264		86,816		87,456
	$	124,233	$	121,597	$	132,640	$	133,264

At June 30, 2013, the Company held no securities of any single issuer (excluding the U. S. Government and federal agencies) with a book value that exceeded 10 percent of stockholders’ equity.

The gross unrealized gains and unrealized losses on available-for-sale securities are as follows:

	June 30, 2013					June 30, 2012
	Gross		Gross			Gross		Gross
	Unrealized		Unrealized			Unrealized		Unrealized
	Gains		Losses			Gains		Losses
	(Dollars in thousands)
U.S. Government agency securities	$	44	$	—		$	5	$	(21	)
Agency mortgage-backed securities	—		(2,680		)	640		—
	$	44	$	(2,680	)	$	645	$	(21	)

When securities are sold, the adjusted cost of the specific security sold is used to compute the gain or loss on sale. The following table summarizes realized gains and losses on available-for-sale securities.

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Gross realized gains	$	831		$	1,178
Gross realized losses	(39		)	(67		)
Net security gains	$	792		$	1,111

At June 30, 2013, investment securities with a fair value of approximately $53.5 million were pledged as collateral to secure outstanding wholesale repurchase agreements and FHLB advances.

The following summarizes the Company’s gross unrealized losses and fair values aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position.

	June 30, 2013
	Less than 12 Months					More than 12 Months				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
	(Dollars in thousands)
U.S. Government agency securities	$	—	$	—		$	—	$	—	$	—	$	—
Agency mortgage-backed securities	76,264		(2,680		)	—		—		76,264		(2,680		)
	$	76,264	$	(2,680	)	$	—	$	—	$	76,264	$	(2,680	)

	June 30, 2012
	Less than 12 Months					More than 12 Months				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
	(Dollars in thousands)
U.S. Government agency securities	$	36,585	$	(21	)	$	—	$	—	$	36,585	$	(21	)
Agency mortgage-backed securities	—		—			—		—		—		—
	$	36,585	$	(21	)	$	—	$	—	$	36,585	$	(21	)

There were no other-than-temporary impairment losses on securities during the year ended June 30, 2013 and 2012.

At June 30, 2013, the Company did not have any securities in a continuous loss position for greater than twelve months. At June 30, 2013, all of the Company’s available-for-sale securities were issued or guaranteed by either government agencies or government-sponsored enterprises. The decline in fair value of the Company’s available-for-sale securities at June 30, 2013 is attributable to changes in interest rates.

Management of the Company, in addition to considering current trends and economic conditions that may affect the quality of individual securities within the Company’s investment portfolio, also considers the Company’s ability and intent to hold such securities to maturity or recovery of cost. Management does not believe any of the Company’s available-for-sale securities are other-than-temporarily impaired at June 30, 2013.

The amortized cost and fair values of available-for-sale debt securities by contractual maturity are shown below as of June 30, 2013. Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Due within one year	$	45,288	$	45,332
Due after one year through five years	—		—
Due after five years through ten years	41,845		40,622
Due after ten years	37,100		35,643
	$	124,233	$	121,597

- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Debt Security
-URI http://asc.fasb.org/extlink&oid=6509901

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 310
-SubTopic 30
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-Glossary Equity Security
-URI http://asc.fasb.org/extlink&oid=6511694

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 5
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27232-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 10
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27405-111563

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 3, 19, 20, 21, 22, 137
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Loans, Allowance for Loan Losses and Credit Quality

12 Months Ended

Jun. 30, 2013

Loans, Allowance for Loan Losses and Credit Quality

Loans, Allowance for Loan Losses and Credit Quality

3. Loans, Allowance for Loan Losses and Credit Quality

The composition of the Company’s loan portfolio is as follows on the dates indicated.

	June 30, 2013						June 30, 2012
	Originated		Purchased		Total		Originated		Purchased		Total
	(Dollars in thousands)						(Dollars in thousands)
Residential real estate	$	89,734	$	2,706	$	92,440	$	90,944	$	3,931	$	94,875
Home equity	35,389		—		35,389		42,696		—		42,696
Commercial real estate	100,402		164,046		264,448		100,196		80,539		180,735
Construction	42		—		42		1,187		—		1,187
Commercial business	29,686		34		29,720		19,612		—		19,612
Consumer	13,337		—		13,337		17,149		—		17,149
Total loans	$	268,590	$	166,786	$	435,376	$	271,784	$	84,470	$	356,254

Loans pledged as collateral with the FHLB for borrowings totaled $56.7 and $67.9 at June 30, 2013 and 2012, respectively.

Loans serviced for others totaled $97.1 million and $33.8 million at June 30, 2013 and 2012, respectively.

Activity in the allowance for loan losses follows:

	Year ended June 30, 2013
	Residential			Commercial			Commercial
	Real Estate			Real Estate			& Industrial			Consumer			Purchased			Unallocated		Total
	(Dollars in thousands)
Beginning balance	$	214		$	93		$	292		$	225		$	—		$	—	$	824
Provision	743			158			(26		)	83			123			41		1,122
Recoveries	6			10			7			29			—			—		52
Charge-offs	(369		)	(88		)	(203		)	(148		)	(47		)	—		(855		)
Ending balance	$	594		$	173		$	70		$	189		$	76		$	41	$	1,143

	Year ended June 30, 2012
	Residential			Commercial			Commercial
	Real Estate			Real Estate			& Industrial			Consumer			Purchased		Unallocated		Total
	(Dollars in thousands)
Beginning balance	$	34		$	147		$	238		$	18		$	—	$	—	$	437
Provision	425			(28		)	27			522			—		—		946
Recoveries	3			—			44			37			—		—		84
Charge-offs	(248		)	(26		)	(17		)	(352		)	—		—		(643		)
Ending balance	$	214		$	93		$	292		$	225		$	—	$	—	824

The following table sets forth information regarding the allowance for loan losses by portfolio segment and impairment methodology.

	June 30, 2013
	Residential		Commercial		Commercial
	Real Estate		Real Estate		& Industrial		Consumer		Purchased		Unallocated		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	235	$	85	$	63	$	23	$	65	$	—	$	471
Collectively evaluated	359		88		7		166		—		41		661
ASC 310-30	—		—		—		—		11		—		11
Total	$	594	$	173	$	70	$	189	$	76	$	41	$	1,143

Loans:
Individually evaluated	$	2,626	$	1,558	$	110	$	149	$	1,129	$	—	$	5,572
Collectively evaluated	122,497		98,886		29,576		13,188		—		—		264,147
ASC 310-30	—		—		—		—		165,657		—		165,657
Total	$	125,123	$	100,444	$	29,686	$	13,337	$	166,786	$	—	$	435,376

	June 30, 2012
	Residential		Commercial		Commercial
	Real Estate		Real Estate		& Industrial		Consumer		Purchased		Unallocated		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	3	$	41	$	284	$	—	$	—	$	—	$	328
Collectively evaluated	211		52		8		225		—		—		496
ASC 310-30	—		—		—		—		—		—		—
Total	$	214	$	93	$	292	$	225	$	—	$	—	$	824

Loans:
Individually evaluated	$	399	$	2,057	$	1,127	$	—	$	1,055	$	—	$	4,638
Collectively evaluated	133,241		99,326		18,485		17,149		—		—		268,201
ASC 310-30	—		—		—		—		83,415		—		83,415
Total	$	133,640	$	101,383	$	19,612	$	17,149	$	84,470	$	—	$	356,254

The following table sets forth information regarding impaired loans. The recorded investment in impaired loans includes discounts or premiums from acquisition through purchase or merger. Interest income recognized includes interest received or accrued based on loan principal and contractual interest rates.

							For the Year Ended
	At June 30, 2013						June 30, 2013
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(Dollars in thousands)						(Dollars in thousands)
Impaired loans without a valuation allowance:
Originated:
Residential real estate	$	1,158	$	1,225	$	—	$	891	$	42
Consumer	88		93		—		59		4
Commercial real estate	434		479		—		1,183		70
Commercial business	47		101		—		144		3
Purchased:
Commercial real estate	928		1,279		—		397		18
Residential real estate	—		—		—		—		—
Total	2,655		3,177		—		2,674		137
Impaired loans with a valuation allowance:
Originated:
Residential real estate	1,468		1,420		235		1,045		75
Consumer	61		61		23		55		4
Commercial real estate	1,124		1,131		85		750		32
Commercial business	63		98		63		189		—
Purchased:
Commercial real estate	201		276		65		40		3
Residential real estate	—		—		—		—		—
Total	2,917		2,986		471		2,079		114
Total impaired loans	$	5,572	$	6,163	$	471	$	4,753	$	251

							For the Year Ended
	At June 30, 2012						June 30, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(Dollars in thousands)						(Dollars in thousands)
Impaired loans without a valuation allowance:
Originated:
Residential real estate	$	293	$	483	$	—	$	235	$	21
Consumer	—		—		—		—		—
Commercial real estate	1,482		1,738		—		1,119		99
Commercial business	377		692		—		520		15
Purchased:
Commercial real estate	1,055		1,462		—		211		—
Residential real estate	—		—		—		—		—
Total	3,207		4,375		—		2,085		135
Impaired loans with a valuation allowance:
Originated:
Residential real estate	106		103		3		73		—
Consumer	—		—		—		—		—
Commercial real estate	575		565		41		647		27
Commercial business	750		817		284		732		—
Purchased:
Commercial real estate	—		—		—		—		—
Residential real estate	—		—		—		—		—
Total	1,431		1,485		328		1,452		27
Total impaired loans	$	4,638	$	5,860	$	328	$	3,537	$	162

The following is a summary of past due and non-accrual loans:

	June 30, 2013
					Past Due		Past Due
					90 Days or		90 Days or		Total						Non-
	30-59		60-89		More-Still		More-		Past		Total		Total		Accrual
	Days		Days		Accruing		Nonaccrual		Due		Current		Loans		Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	278	$	408	$	—	$	1,965	$	2,651	$	87,083	$	89,734	$	2,346
Home equity	53		47		—		253		353		35,036		35,389		334
Commercial real estate	91		326		—		98		515		99,887		100,402		473
Construction	—		—		—		—		—		42		42		—
Commercial business	—		—		—		44		44		29,642		29,686		110
Consumer	193		77		—		117		387		12,950		13,337		136
Total originated portfolio	615		858		—		2,477		3,950		264,640		268,590		3,399

Purchased portfolio:
Residential real estate	—		—		—		—		—		2,706		2,706		—
Commercial business	—		—		—		—		—		34		34		—
Commercial real estate	—		2,210		—		1,135		3,345		160,701		164,046		1,457
Total purchased portfolio	—		2,210		—		1,135		3,345		163,441		166,786		1,457
Total loans	$	615	$	3,068	$	—	$	3,612	$	7,295	$	428,081	$	435,376	$	4,856

	June 30, 2012
					Past Due		Past Due
					90 Days or		90 Days or		Total						Non-
	30-59		60-89		More-Still		More-		Past		Total		Total		Accrual
	Days		Days		Accruing		Nonaccrual		Due		Current		Loans		Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	261	$	183	$	—	$	2,907	$	3,351	$	87,593	$	90,944	$	3,090
Home equity	16		160		—		136		312		42,384		42,696		220
Commercial real estate	—		208		—		417		625		99,571		100,196		417
Construction	—		—		—		—		—		1,187		1,187		—
Commercial business	—		107		—		901		1,008		18,604		19,612		1,008
Consumer	259		137		—		206		602		16,547		17,149		324
Total originated portfolio	536		795		—		4,567		5,898		265,886		271,784		5,059

Purchased portfolio:
Residential real estate	—		—		—		—		—		3,931		3,931		—
Commercial real estate	—		—		—		1,055		1,055		79,484		80,539		1,055
Total purchased portfolio	—		—		—		1,055		1,055		83,415		84,470		1,055
Total loans	$	536	$	795	$	—	$	5,622	$	6,953	$	349,301	$	356,254	$	6,114

The following tables present a summary of purchased credit-impaired loans acquired by the LASG:

	PCI Loans Acquired
	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Contractually required payments receivable	$	62,182		$	35,455
Nonaccretable difference	(12,942		)	(8,765		)
Cash flows expected to be collected	49,240			26,690
Accretable yield	(19,280		)	(8,589		)
Fair value of loans acquired	$	29,960		$	18,101

	PCI Loans: Activity in Accretable Yield
	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Beginning balance	$	7,169		$	—
Accretion	(5,278		)	(1,912		)
Acquisitions	19,280			8,589
Reclassifications from nonaccretable difference	1,257			1,156
Other changes	(5,984		)	(664		)
End balance	$	16,444		$	7,169

The following table provides information related to the unpaid principal balance and carrying amounts of PCI loans.

	June 30, 2013		June 30, 2012
	(Dollars in thousands)
Unpaid principal balance	$	48,340	$	21,359
Carrying amount	$	30,775	$	13,866

The following table shows loans modified in a TDR and the change in the recorded investment subsequent to the modifications.

	Year Ended June 30,
	2013					2012
		Recorded		Recorded			Recorded		Recorded
	Number of	Investment		Investment		Number of	Investment		Investment
	Contracts	Pre-Modification		Post-Modification		Contracts	Pre-Modification		Post-Modification
	(Dollars in thousands)
Originated portfolio:
Residential real estate	12	$	1,113	$	1,113	1	$	139	$	139
Home equity	4	158		158		1	20		20
Commercial real estate	1	103		50		1	184		184
Commercial business	—	—		—		—	—		—
Consumer	6	16		16		—	—		—
Total originated portfolio	23	1,390		1,337		3	343		343

Purchased portfolio:
Residential real estate	—	—		—		—	—		—
Commercial real estate	2	207		280		—	—		—
Total purchased portfolio	2	207		280		—	—		—
Total	25	$	1,597	$	1,617	3	$	343	$	343

Further, during the first quarter of fiscal 2013, the Company identified approximately $1.1 million of residential and consumer loans for which the borrower’s obligation had been discharged in bankruptcy in a prior period. Under recent regulatory guidance, these loans are required to be classified as TDRs and are considered collateral dependent impaired loans.

The following table shows the Company’s post-modification balance of TDRs by type of modification.

	Year Ended June 30,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Extended maturity	4	$	180	1	$	20
Adjusted interest rate	5	240		—	—
Rate and maturity	6	736		1	184
Principal deferment	2	72		1	139
Protective advance	1	201		—	—
Court ordered concession	4	184		—	—
Other	3	4		—	—
	25	$	1,617	3	$	343

There were no defaults of loans previously modified in a TDR during the years ended June 30, 2013 or 2012.

As of June 30, 2013, there were no further commitments to lend associated with loans modified in a TDR.

The following table shows the Company’s total TDRs as of the dates indicated.

	June 30,		June 30,
	2013		2012
	(Dollars in thousands)
Nonaccrual	$	1,110	$	139
Accrual	2,632		1,165
Total TDRs	$	3,742	$	1,304

Credit Quality Indicators

The Company utilizes a ten-point internal loan rating system for its purchased loan portfolio and originated commercial real estate, construction and commercial business loans as follows:

Loans rated 1 — 6: Loans in these categories are considered “pass” rated loans. Loans in categories 1-5 are considered to have low to average risk. Loans rated 6 are considered marginally acceptable business credits and have more than average risk.

Loans rated 7: Loans in this category are considered “special mention.” These loans show signs of potential weakness and are being closely monitored by management.

Loans rated 8: Loans in this category are considered “substandard.” Loans classified as substandard are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified have a well defined weakness or weaknesses that jeopardize the orderly liquidation of the debt.

Loans rated 9: Loans in this category are considered “doubtful.” Loans classified as doubtful have all the weaknesses inherent in one graded 8 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 rated 10: Loans in this category are considered “loss” and of such little value that their continuance as loans is not warranted.

On an annual basis, or more often if needed, the Company formally reviews the ratings of all commercial real estate, construction, and commercial business loans. Semi-annually, the Company engages an independent third-party to review a significant portion of loans within these segments. Management uses the results of these reviews as part of its annual review process. Risk ratings on purchased loans, with and without evidence of credit deterioration at acquisition, are determined relative to the Company’s recorded investment in that loan, which may be significantly lower than the loan’s unpaid principal balance.

The following tables present the Company’s commercial loans by risk rating.

	June 30, 2013
	Originated Portfolio
	Commercial				Commercial
	Real Estate		Construction		and Industrial		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	95,834	$	42	$	29,340	$	161,965
Loans rated 7	3,537		—		82		3,226
Loans rated 8	1,031		—		264		1,595
Loans rated 9	—		—		—		—
Loans rated 10	—		—		—		—
	$	100,402	$	42	$	29,686	$	166,786

	June 30, 2012
	Originated Portfolio
	Commercial				Commercial
	Real Estate		Construction		and Industrial		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	96,963	$	1,187	$	18,223	$	83,415
Loans rated 7	1,886		—		250		1,055
Loans rated 8	1,347		—		1,139		—
Loans rated 9	—		—		—		—
Loans rated 10	—		—		—		—
	$	100,196	$	1,187	$	19,612	$	84,470

Premises and Equipment

12 Months Ended

Jun. 30, 2013

Premises and Equipment

Premises and Equipment

4. Premises and Equipment

Premises and equipment consists of the following:

	June 30, 2013		June 30, 2012		Estimated Useful Life
	(Dollars in thousands)				(In years)
Land	$	940	$	1,210	n/a
Buildings	2,120		2,120		39
Assets recorded under capital lease	1,850		1,850		Term of lease
Leasehold and building improvements	2,310		940		5-39 (or term of lease, if shorter)
Furniture, fixtures and equipment	6,295		4,909		3-7
	13,515		11,029
Less accumulated depreciation	3,440		1,824
Net premises and equipment	$	10,075	$	9,205

Depreciation and amortization of premises and equipment included in occupancy and equipment expense was $1.7 million for the year ended June 30, 2013 and $1.3 million for the year ended June 30, 2012.

- Definition

The entire disclosure for long-lived, physical assets that are used in the normal conduct of business to produce goods and services and not intended for resale. Examples include land, buildings, machinery and equipment, and other types of furniture and equipment including, but not limited to, office equipment, furniture and fixtures, and computer equipment and software. This disclosure may include property plant and equipment accounting policies and methodology, a schedule of property, plant and equipment gross, additions, deletions, transfers and other changes, depreciation, depletion and amortization expense, net, accumulated depreciation, depletion and amortization expense and useful lives, income statement disclosures, assets held for sale and public utility disclosures.

+ References + Details

Intangible Assets

12 Months Ended

Jun. 30, 2013

Intangible Assets

Intangible Assets

5. Intangible Assets

At June 30, 2013 and 2012, intangible assets consisted of a core deposit intangible. During the year ended June 30, 2012, intangible assets consisting of customer lists and non-compete agreements were included in the sale of the assets of the Company’s insurance division. The Company’s core deposit intangible is being amortized on an accelerated basis over 9.5 years.

The changes in the carrying amount of intangible assets follow:

	Identifiable Intangibles
	Core						Total
	Deposit			Other			Identifiable
	Intangible			Intangibles			Intangibles

Balance, June 30, 2011	$	5,685		$	7,448		$	13,133
Amortization	(1,198		)	(68		)	(1,266		)
Assets sold or disposed	—			(7,380		)	(7,380		)
Balance, June 30, 2012		4,487			—			4,487
Amortization	(943		)	—			(943		)
Assets sold or disposed	—			—			—
Balance, June 30, 2013	$	3,544		$	—		$	3,544

The components of identifiable intangible assets follow at June 30:

	2013			2012
	(Dollars in thousands)
Core Deposit Intangible:
Gross carrying amount	$	6,348		$	6,348
Accumulated amortization	(2,804		)	(1,861		)
	$	3,544		$	4,487

Estimated annual amortization expense associated with intangible assets follows for the fiscal years ending June 30 (dollars in thousands):

2014	$	746
2015	589
2016	477
2017	432
2018	433
Thereafter	867
	$	3,544

- Definition

The entire disclosure for the aggregate amount of goodwill and a description of intangible assets, which may include (a) for amortizable intangible assets (also referred to as finite-lived intangible assets), the carrying amount, the amount of any significant residual value, and the weighted-average amortization period, (b) for intangible assets not subject to amortization (also referred to as indefinite-lived intangible assets), the carrying amount, and (c) the amount of research and development assets acquired and written off in the period, including the line item in the income statement in which the amounts written off are aggregated, if not readily apparent from the income statement. Also discloses (a) for amortizable intangibles assets in total and by major class, the gross carrying amount and accumulated amortization, the total amortization expense for the period, and the estimated aggregate amortization expense for each of the five succeeding fiscal years, (b) for intangible assets not subject to amortization the carrying amount in total and by major class, and (c) for goodwill, in total and for each reportable segment, the changes in the carrying amount of goodwill during the period (including the aggregate amount of goodwill acquired, the aggregate amount of impairment losses recognized, and the amount of goodwill included in the gain (loss) on disposal of a reporting unit). If any part of goodwill has not been allocated to a reportable segment, discloses the unallocated amount and the reasons for not allocating. For each impairment loss recognized related to an intangible asset (excluding goodwill), discloses: (a) a description of the impaired intangible asset and the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method for determining fair value, (c) the caption in the income statement or the statement of activities in which the impairment loss is aggregated, and (d) the segment in which the impaired intangible asset is reported. For each goodwill impairment loss recognized, discloses: (a) a description of the facts and circumstances leading to the impairment, (b) the amount of the impairment loss and the method of determining the fair value of the associated reporting unit, and (c) if a recognized impairment loss is an estimate not finalized and the reasons why the estimate is not final. May also disclose the nature and amount of any significant adjustments made to a previous estimate of an impairment loss.

+ References + Details

Deposits

12 Months Ended

Jun. 30, 2013

Deposits

Deposits

6. Deposits

The composition of deposits at June 30 follows:

	2013		2012
	(Dollars in thousands)
Demand	$	46,425	$	45,323
NOW	57,334		57,477
Money market	84,416		45,024
Regular savings	33,636		32,727
Time certificates of less than $100	99,373		100,292
Other time certificates	163,439		141,345
	$	484,623	$	422,188

The scheduled maturities of time certificates at June 30, 2013 by fiscal year follow (dollars in thousands):

2014	$	103,557
2015	59,172
2016	48,218
2017	15,139
2018	32,586
Thereafter	4,140
	$	262,812

- Definition

The entire disclosure for deposit liabilities including data and tables. It may include a description of the entity's deposit liabilities, the aggregate amount of time deposits (including certificates of deposit) in denominations of $100,000 or more at the balance sheet date; the aggregate amount of any demand deposits that have been reclassified as loan balances, such as overdrafts, at the balance sheet date; deposits that are received on terms other than those in the normal course of business, the amount of accrued interest on deposit liabilities; securities, mortgage loans or other financial instruments that serve as collateral for deposits; for time deposits having a remaining term of more than one year, the aggregate amount of maturities for each of the five years following the balance sheet date; and the weighted average interest rate for all deposit liabilities held by the entity.

+ References + Details

Borrowings

12 Months Ended

Jun. 30, 2013

Borrowings

Borrowings

7. Borrowings

Federal Home Loan Bank

A summary of fixed-rate long term advances from the Federal Home Loan Bank of Boston as of June 30 follows:

Maturity
By Fiscal	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
Year	2013		2012		2013		2012		2013		2012
	(Dollars in thousands)
2013	$	—	$	15,000	$	—	$	15,194	—	%	1.46	%
2014	—		—		—		—		—		—
2015	12,500		12,500		12,626		12,728		2.08		2.30
2016	—		—		—		—		—		—
2017	10,000		10,000		10,296		10,382		3.28		3.48
2018	5,000		5,000		5,118		5,146		3.68		3.84
	$	27,500	$	42,500	$	28,040	$	43,450	2.81		2.47

At June 30, 2013, FHLB advances with unpaid principal of $10.0 million were subject to call provisions and may be called prior to the stated maturity.

Certain mortgage loans, free of liens, pledges and encumbrances and certain investment securities maintained at the FHLB not otherwise pledged have been pledged under a blanket agreement to secure these advances. The Company is required to own stock in the Federal Home Loan Bank of Boston in order to borrow from the FHLB.

As of June 30, 2013, the Company had a $2.1 million line of credit arrangement with the FHLB which was fully available. Also at June 30, 2013, the Company had approximately $44.0 million of additional capacity to borrow from the FHLB.

Wholesale Repurchase Agreements

A summary of wholesale repurchase agreements as of June 30 follows:

Maturity
By Fiscal	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
Year	2013		2012		2013		2012		2013		2012
	(Dollars in thousands)
2013	$	—	$	40,000	$	—	$	40,302	—	%	1.22	%
2014	15,000		15,000		15,035		15,358		0.80		1.64
2015	—		—		—		—		—		—
2016	10,000		10,000		10,362		10,523		2.74		2.74
	$	25,000	$	65,000	$	25,397	$	66,183	1.59		1.56

At June 30, 2013, $10.0 million of wholesale repurchase agreements maturing in fiscal 2016 are callable on a quarterly basis.

The Company is subject to margin calls on each transaction to maintain the necessary collateral in the form of cash or other mortgage-backed securities during the borrowing term.

Capital Lease Obligation

In fiscal 2006, the Company recognized a capital lease obligation for its Lewiston, Maine, headquarters. The present value of the lease payments over fifteen years exceeded 90% of the fair value of the property.

The future minimum lease payments over the remaining term of the lease and the outstanding capital lease obligation at June 30, 2013 are as follows for years ending June 30 (dollars in thousands):

2014	$	264
2015	264
2016	303
2017	306
2018	306
2019 and thereafter	637
	2,080
Imputed interest	(341		)
Capital lease obligation	$	1,739

Short-Term Borrowings

Short-term borrowings are sweep accounts, which are a demand account product that moves balances in excess of an agreed upon target amount from a demand deposit account into an interest-bearing account overnight. The sweep account is collateralized with a letter of credit issued by the FHLBB. The Company ceased offering securities sold under agreements to repurchase in fiscal 2011. The weighted average interest rate on short-term borrowings was 0.00% and 2.00% at June 30, 2013 and 2012, respectively.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References + Details

Junior Subordinated Debentures Issued to Affiliated Trusts

12 Months Ended

Jun. 30, 2013

Junior Subordinated Debentures Issued to Affiliated Trusts

Junior Subordinated Debentures Issued to Affiliated Trusts

8. Junior Subordinated Debentures Issued to Affiliated Trusts

NBN Capital Trust II and NBN Capital Trust III were created in December 2003. NBN Capital Trust IV was created in December 2004. Each such trust is a Delaware statutory trust (together, the “Private Trusts”). The exclusive purpose of the Private Trusts was (i) issuing and selling common securities and preferred securities in a private placement offering (the “Private Trust Securities”), (ii) using the proceeds of the sale of the Private Trust Securities to acquire Junior Subordinated Deferrable Interest Notes (“Junior Subordinated Debentures”); and (iii) engaging only in those other activities necessary, convenient or incidental thereto. Accordingly, the Junior Subordinated Debentures are the sole assets of each of the Private Trusts.

The following table summarizes the Junior Subordinated Debentures issued by the Company to each affiliated trust and the Private Trust Securities issued by each affiliated trust at June 30, 2013. Amounts include the junior subordinated debentures acquired by the affiliated trusts from the Company with the capital contributed by the Company in exchange for the common securities of such trust, which were $93 thousand each for NBN Capital Trust II and III and $310 thousand for NBN Capital Trust IV. The trust preferred securities (the “Preferred Securities”) were sold in two separate private placement offerings. The Company has the right to redeem the Junior Subordinated Debentures, in whole or in part, on or after March 30, 2009, for NBN Capital Trust II and III, and on or after February 23, 2010, for NBN Capital Trust IV, at the redemption price specified in the associated Indenture, plus accrued but unpaid interest to the redemption date.

	Maturity	Unpaid Principal Balance				Carrying Amount
	Date	2013		2012		2013		2012
		(Dollars in thousands)
NBN Capital Trust II	March 30, 2034	$	3,093	$	3,093	$	1,775	$	1,747
NBN Capital Trust III	March 30, 2034	3,093		3,093		1,775		1,747
NBN Capital Trust IV	February 23, 2035	10,310		10,310		4,718		4,612
		$	16,496	$	16,496	$	8,268	$	8,106

NBN Capital Trust II and III pay a variable rate based on three month LIBOR plus 2.80%, and NBN Capital Trust IV pays a variable rate based on three month LIBOR plus 1.89%. Accordingly, the Preferred Securities of the Private Trusts currently pay quarterly distributions at an annual rate of 3.26% for the stated liquidation amount of $1,000 per Preferred Security for NBN Capital Trust II and III and an annual rate of 2.36% for the stated liquidation amount of $1,000 per Preferred Security for NBN Capital Trust IV. The Company has fully and unconditionally guaranteed all of the obligations of each trust. The guaranty covers the quarterly distributions and payments on liquidation or redemption of the Private Trust Securities, but only to the extent of funds held by the trusts.

The Junior Subordinated Debentures each have variable rates indexed to three-month LIBOR. During the fiscal year ended June 30, 2010, the Company purchased two interest rate caps and an interest rate swap to hedge the interest rate risk on notional amounts of $6 million and $10 million, respectively, of the Company’s Junior Subordinated Debentures. Each was a cash flow hedge to manage the risk to net interest income in a period of rising rates.

The interest rate caps hedge the junior subordinated debt resulting from the issuance of trust preferred securities by our affiliates NBN Capital Trust II and NBN Capital Trust III. The notional amount of $3 million for each interest rate cap represents the outstanding junior subordinated debt from each trust. The strike rate is 2.505%. The Company will recognize higher interest expense on the junior subordinated debt for the first 200 basis points increase in three-month LIBOR. Once the three-month LIBOR rate exceeds 2.505% on a quarterly reset date, there will be a payment by the counterparty to the Company at the following quarter end. The effective date of the purchased interest rate caps was September 30, 2009 and mature five years thereafer.

The interest rate swap hedges the junior subordinated debt resulting from the issuance of trust preferred stock by our affiliate NBN Capital Trust IV. The notional amount of $10 million represents the outstanding junior subordinated debt from this trust. Under the

terms of the interest rate swap, the Company pays a fixed rate of 4.69% quarterly for a period of five years from the effective date of February 23, 2010. The Company receives quarterly interest payments of three month LIBOR plus 1.89% over the same term.

Capital and Regulatory Matters

12 Months Ended

Jun. 30, 2013

Capital and Regulatory Matters

Capital and Regulatory Matters

9. Capital and Regulatory Matters

The Company and the Bank are subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory and possibly additional discretionary actions by regulators that, if undertaken, could have a direct material effect on the Company’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.

The prompt corrective action regulations define specific capital categories based on an institution’s capital ratios. The capital categories, in declining order, are “well capitalized,” “adequately capitalized,” “undercapitalized,” “significantly undercapitalized” and “critically undercapitalized.”

As of June 30, 2013 and 2012, the most recent notification from the Company’s and the Bank’s regulator categorized the Company and the Bank as “well capitalized” under the regulatory framework for prompt corrective action. To be categorized as “well capitalized,” the Company and the Bank must maintain minimum total risk-based, Tier 1 risk-based and Tier 1 leverage ratios as set forth in the table below. There are no conditions or events since that notification that management believes have changed the institution’s regulatory designation as “well-capitalized” under the regulatory framework for prompt corrective action.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios as set forth in the table below. At June 30, 2013 and 2012, the Company’s and the Bank’s ratios exceeded the regulatory requirements. Management believes that the Company and the Bank met all capital adequacy requirements to which they were subject as of June 30, 2013 and 2012. The Company’s and the Bank’s regulatory capital ratios are set forth below.

									Minimum
									To Be Well
					Minimum				Capitalized Under
					Capital				Prompt Correction
	Actual				Requirements				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
June 30, 2013:
Total capital to risk weighted assets:
Company	$	122,291	27.54	%	$	35,520	>8.0	%	$	N/A	N/A
Bank	99,527		22.30	%	35,709		>8.0	%	44,637		>10.0	%

Tier 1 capital to risk weighted assets:
Company	121,148		27.29	%	17,760		>4.0	%	N/A		N/A
Bank	95,485		21.39	%	17,855		>4.0	%	26,782		>6.0	%

Tier 1 capital to average assets:
Company	121,148		17.78	%	27,255		>4.0	%	N/A		N/A
Bank	95,485		14.08	%	27,121		>4.0	%	33,902		>5.0	%

June 30, 2012:
Total capital to risk weighted assets:
Company	$	124,452	33.34	%	$	29,863	>8.0	%	$	N/A	N/A
Bank	75,081		20.14	%	29,824		>8.0	%	37,280		>10.0	%

Tier 1 capital to risk weighted assets:
Company	123,628		33.12	%	14,931		>4.0	%	N/A		N/A
Bank	70,414		18.89	%	14,910		>4.0	%	22,365		>6.0	%

Tier 1 capital to average assets:
Company	123,628		19.91	%	24,837		>4.0	%	N/A		N/A
Bank	70,414		11.43	%	24,642		>4.0	%	30,802		>5.0	%

The Bank may not declare or pay a cash dividend on, or repurchase, any of its capital stock from the Parent if the effect thereof would cause the capital of the Bank to be reduced below the capital requirements imposed by the regulatory authorities or if such amount exceeds the otherwise allowable amount under FRB rules.

In connection with the Merger, as part of the regulatory approval process, the Company and the Bank made certain commitments to the Federal Reserve, the most significant of which are (i) to maintain a Tier 1 leverage ratio of at least 10%, (ii) to maintain a total risk-based capital ratio of at least 15%, (iii) to limit purchased loans to 40% of total loans, (iv) to fund 100% of the Company’s loans with core deposits (defined as non-maturity deposits and non-brokered insured time deposits), and (v) to hold commercial real estate loans (including owner-occupied commercial real estate) to within 300% of total risk-based capital. On June 28, 2013, the Federal Reserve approved the amendment of the commitment to hold commercial real estate loans to within 300% of total risk-based capital to exclude owner-occupied commercial real estate loans. All other commitments made to the Federal Reserve in connection with the merger remain unchanged. The Company and the Bank are currently in compliance with all commitments to the Federal Reserve.

- Definition

The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
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Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Audit and Accounting Guide (AAG)
-Number AAG-DEP
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-Chapter 17
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Earnings Per Common Share

12 Months Ended

Jun. 30, 2013

Earnings Per Common Share

Earnings Per Common Share

10. Earnings Per Common Share

EPS is computed by dividing net income allocated to common shareholders by the weighted average common shares outstanding. The following table shows the weighted average number of shares outstanding for the periods indicated. Shares issuable relative to stock options granted have been reflected as an increase in the shares outstanding used to calculate diluted EPS, after applying the treasury stock method. The number of shares outstanding for basic and diluted EPS is presented as follows:

	Year ended June 30,
	2013			2012
	(Dollars in thousands, except share and per share data)
Net income from continuing operations	$	4,420		$	1,016
Preferred stock dividends and accretion	(355		)	(392		)
Net income from continuing operations available to common shareholders	$	4,065		$	624

Weighted average shares used in calculation of basic earnings per share	10,409,588			4,277,777
Incremental shares from assumed exercise of dilutive securities	—			13,575
Weighted average shares used in calculation of diluted earnings per share	10,409,588			4,291,352

Earnings per common share:
Income from continuing operations	$	0.39		$	0.15
Income from discontinued operations	—			0.26
Earnings per common share	$	0.39		$	0.41

Diluted earnings per common share:
Income from continuing operations	$	0.39		$	0.15
Income from discontinued operations	—			0.26
Diluted earnings per common share	$	0.39		$	0.41

Average anti-dilutive options and warrants excluded from the calculation of dilutive earnings per share follow:

	Year ended June 30,
	2013	2012
Stock options	963,549	796,049
Warrants	31,365	—
	994,914	796,049

Income Taxes

12 Months Ended

Jun. 30, 2013

Income Taxes

Income Taxes

11. Income Taxes

The current and deferred components of income tax expense from continuing operations follows:

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Current provision (benefit)
Federal	$	2,179		$	(1,033	)
State	194			71
Total current provision (benefit)	2,373			(962		)
Deferred (benefit) provision
Federal	(428		)	1,143
Total deferred (benefit) provision	(428		)	1,143
Total tax provision	$	1,945		$	181

The reconciliation between the statutory federal income tax rate of 34% and the effective tax rate on income from continuing operations follows:

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Expected income tax expense at federal tax rate	$	2,164		$	407
State tax, net of federal tax benefit	128			47
Non-taxable BOLI income	(244		)	(170		)
Low-income housing tax credit	(118		)	(118		)
Other	15			15
Total tax provision	$	1,945		$	181

The tax effect of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities at June 30 follows:

	2013			2012
	(Dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	378		$	280
Loan basis differential	931			629
Time deposit basis differential	252			589
Derivative basis differential	89			146
Capital lease	127			120
Deferred compensation	138			213
Stock-based compensation	584			418
Unrealized loss on derivatives	89			130
Unrealized loss on available for sale securities	896			—
Interest on nonperforming loans	266			212
Limited partnerships	123			97
Other	232			205
Total deferred tax asset	4,105			3,039
Deferred tax liabilities
Goodwill and other intangible assets	(1,205		)	(1,526		)
Prepaid expenses	(56		)	(268		)
Premises and equipment	(761		)	(801		)
Borrowings basis differential	(2,479		)	(2,127		)
Unrealized gain on available for sale securities	—			(212		)
Other	(63		)	(59		)
Total deferred tax liability	(4,564		)	(4,993		)
Net deferred tax liability	$	(459	)	$	(1,954	)

The net deferred tax liability was included in other liabilities in the accompanying balance sheet as of June 30, 2013 and 2012.

At June 30, 2013, the Company has determined that a valuation allowance is not required for any of its deferred tax assets since it is more likely than not that these assets will be realized.

For federal tax purposes, the Company has a $2.0 million reserve for loan losses which remains subject to recapture. If any portion of the reserve is used for purposes other than to absorb the losses for which it was established, approximately 150% of the amount actually used (limited to the amount of the reserve) would be subject to taxation in the year in which used. As the Company intends to use the reserve only to absorb loan losses, no provision has been made for potential liability that would result if 100% of the reserve were recaptured.

It is the Company’s policy to provide for uncertain tax positions and the related interest and penalties based upon management’s assessment of whether a tax benefit is more likely than not to be sustained upon examination by tax authorities. As of June 30, 2013 and 2012, there were no material uncertain tax positions related to federal and state income tax matters. The Company is currently open to audit under the statute of limitations by the Internal Revenue Service and state taxing authorities for the fiscal 2010 tax return and forward.

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
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Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 136, 172
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 43, 44, 45, 46, 47, 48, 49
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Employee Benefit Plans	12 Months Ended
Employee Benefit Plans	Jun. 30, 2013
Employee Benefit Plans
Employee Benefit Plans	12. Employee Benefit Plans 401(k) Plan The Company offers a contributory 401(k) plan that is available to all full-time salaried and hourly-paid employees who have attained age 18, and completed 90 days of employment. Employees may contribute up to 100% of their base compensation, subject to IRS limitations. The Company will match 50% of each employee’s contribution up to the first 6% contributed. For the years ended June 30, 2013 and 2012, the Company contributed $350 thousand and $308 thousand, respectively. Deferred Compensation The Company has individual deferred compensation agreements with five senior officers. The Company recognized deferred compensation expense of $160 thousand and $159 thousand for the years ended June 30, 2013 and 2012, respectively. At June 30, 2013 and 2012, the Company’s deferred compensation liability was $405 thousand and $245 thousand, respectively.

- Definition

The entire disclosure for pension and other postretirement benefits.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 715
-URI http://asc.fasb.org/topic&trid=2235017

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Implementation Guide (Q and A)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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-Name Statement of Financial Accounting Standard (FAS)
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+ Details

Stock-Based Compensation

12 Months Ended

Jun. 30, 2013

Stock-Based Compensation

Stock-Based Compensation

13. Stock-Based Compensation

At the 2012 annual meeting of shareholders, the Company’s shareholders approved the Northeast Bancorp Amended and Restated 2010 Stock Option and Incentive Plan (the “Restated Plan”). The Restated Plan amends and restates the Northeast Bancorp 2010 Option and Incentive Plan (the “2010 Plan”). The key material differences between the 2010 Plan and the Restated Plan are:

· The maximum number of shares of common stock to be issued under the Restated Plan is increased by 600,000 shares, from 810,054 shares to 1,410,054 shares;

· The method by which shares subject to previously granted awards are added back to the Restated Plan has been revised so that the only shares added back to the Restated Plan are those subject to awards that are forfeited, canceled or otherwise terminated. The following shares shall not be added back to the Restated Plan: (i) shares tendered or held back upon exercise of an option or settlement of an award to cover the exercise price or tax withholding, and (ii) shares subject to a stock appreciation right that are not issued in connection with the stock settlement of the stock appreciation right upon exercise thereof.

· Minimum vesting periods are required for grants of restricted stock, restricted stock units and performance share awards; and

· The term of the Restated Plan will now expire on November 28, 2022, while grants of incentive options under the Restated Plan may be made until September 21, 2022.

A summary of stock option activity for the year ended June 30, 2013 follows:

			Weighted
			Average
	Shares		Exercise Price
Outstanding at beginning of year	796,049		$	13.98
Granted	395,919		9.38
Exercised	—		—
Forfeited	(18,301	)	13.40
Outstanding at end of year	1,173,667		12.44
Exercisable	126,714		14.08

			Weighted
			Average Grant
	Shares		Date Fair Value
Exercisable, beginning of year	54,175		$	3.86
Vested	75,239		3.86
Exercised	—		—
Forfeited or expired	(2,700	)	3.85
Exercisable, end of year	126,714		3.86

The fair values of options granted have been estimated on the date of grant using the Black-Scholes option-pricing model using the following weighted-average assumptions.

	Year Ended June 30,
	2013	2012
Assumptions:
Dividend yield	3.86%	2.81%
Expected life	6.5 years	6.0 years
Expected volatility	30.47%	33.86%
Risk-free interest rate	1.26%	0.98%
Weighted average fair value per option	$1.79	$4.39

The expected volatility is based on historical volatility. The risk-free interest rate is for periods within the expected life of the awards, and is based on the U.S. Treasury yield curve in effect at the time of the grant. The expected life is based on expected exercise experience.

During the year ended June 30, 2013, certain provisions of outstanding stock options with market-based conditions were modified. The options, consisting of 237,616 shares, were granted to three executives of the Company in December of 2010 and were to vest in three equal tranches upon the Company’s common stock reaching applicable hurdle prices over specified time periods. The applicable hurdle price varies depending on the number of years that have elapsed since the date of grant. With respect to the first tranche, the applicable hurdle price was $27.86 for the period from December 29, 2010 through December 29, 2015; $31.34 for the period from December 29, 2015 through December 29, 2016; and $34.83 for the period from December 29, 2016 through December 29, 2017. With respect to the second tranche, the hurdle price was $31.34 for the period from December 29, 2010 through December 29, 2016; and $34.83 for the period from December 29, 2016 through December 29, 2017. With respect to the third tranche, the hurdle price was $34.83 for the period from December 29, 2010 through December 29, 2017.

The Company’s Compensation Committee approved amending the hurdle prices as follows:

With respect to the first tranche, the applicable hurdle price is $16.43 for the period from December 29, 2010 through December 28, 2015; $18.58 for the period from December 29, 2015 through December 28, 2016; and $20.77 for the period from December 29, 2016 through December 28, 2017. With respect to the second tranche, the hurdle price is $18.58 for the period from December 29, 2010 through December 28, 2016; and $20.77 for the period from December 29, 2016 through December 28, 2017. With respect to the third tranche, the hurdle price is $20.77 for the period from December 29, 2010 through December 28, 2017.

Except as modified by this amendment, all other terms and conditions of each of the outstanding performance-based stock options, including the option exercise price of $13.93 per share, remain in full force and effect.

The incremental expense resulting from the modification was calculated as the difference between the stock option’s fair value immediately before and after the modification using the Hull-White option pricing model and the following weighted-average assumptions:

Assumptions:
Dividend yield		3.72%
Expected life		7.8 years
Expected volatility		28.45% - 32.84%
Risk-free interest rate		0.07% - 1.54%
Incremental weighted average fair value per option		$0.52

The following table summarizes information about stock options outstanding at June 30, 2013.

Options Outstanding							Options Exercisable
(Dollars in thousands, except per share data)
Weighted Average			Weighted Average		Aggregate		Weighted Average			Weighted Average		Aggregate
Exercise Price		Number	Remaining Life		Intrinsic Value		Exercise Price		Number	Remaining Life		Intrinsic Value
$	9.38	395,919		9.58 years	$	115	$	9.38	—		9.58 years	$	—
12.63		32,500		8.58	—		12.63		—		8.58	—
13.93		583,238		7.50	—		13.93		94,312		7.50	—
14.52		162,010		7.50	—		14.52		32,402		7.50	—
12.44		1,173,667		8.23	$	115	12.44		126,714		7.50	$	—

A summary of restricted stock activity for the year ended June 30, 2013 follows:

			Weighted
			Average Grant Date
	Shares		Fair Value
Unvested at beginning of period	13,026		$	13.93
Granted	63,202		9.33
Vested	(5,210	)	13.93
Forfeited	—		—
Unvested at end of period	71,018		9.84

At June 30, 2013 and 2012, the Company has accrued a liability of $48 thousand representing the maximum cash payment for performance-based stock appreciation rights (“SARs”) granted in the fiscal year ended June 30, 2011. The SARs expire in December of 2020.

Stock-based compensation totaled $563 thousand for the year ended June 30, 2013 and $445 thousand for the year ended June 30, 2012. The tax benefit related to stock-based compensation expensed totaled $191thousand for the year ended June 30, 2013 and $151 thousand for the year ended June 30, 2012. The estimated amount and timing of future pre-tax stock-based compensation expense to be recognized are as follows.

	Year Ending June 30,
	2014		2015		2016		2017		2018		Total
	(Dollars in thousands)
Stock options	$	523	$	549	$	424	$	223	$	83	$	1,802
Restricted stock	118		118		118		118		69		541
	$	641	$	667	$	542	$	341	$	152	$	2,343

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 50
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6406099&loc=d3e25284-112666

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 718
-SubTopic 40
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6418621&loc=d3e17540-113929

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5070-113901

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5047-113901

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-SubTopic 10
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-Paragraph 4
-URI http://asc.fasb.org/extlink&oid=6415400&loc=d3e5444-113901

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 14

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 123R
-Paragraph 64, 65, A240
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Statement of Position (SOP)
-Number 93-6
-Paragraph 53
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

12 Months Ended

Jun. 30, 2013

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

14. Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and to reduce its own exposure to fluctuations in interest rates. These financial instruments include commitments to extend credit and standby letters of credit. Those instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets. The contract amounts of those instruments reflect the extent of involvement the Company has in particular classes of financial instruments.

The Company’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Company uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Financial instruments with contract amounts which represent credit risk are as follows as of June 30:

	2013		2012
	(Dollars in thousands)
Commitments to originate loans:
Residential real estate mortgages	$	12,445	$	10,279
Construction loans	—		106
Consumer	—		25
Commercial real estate mortgages	—		361
Commercial business loans	904		1,145
	$	13,349	$	11,916

Unused lines of credit	$	30,809	$	36,276
Standby letters of credit	420		602
Unadvanced portions of construction loans	—		162

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Company evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Company upon extension of credit, is based on management’s credit evaluation of the counter party. Collateral held varies but may include accounts receivable, inventory, property, plant and equipment, and income-producing commercial properties. The Company has recorded an allowance for possible losses on commitments and unfunded loans totaling $10 thousand and $6 thousand recorded in other liabilities at June 30, 2013 and 2012, respectively.

Standby letters of credit are conditional commitments issued by the Company to guarantee the performance of a customer to a third party. Those guarantees are issued to support private borrowing arrangements. The credit risk involved in issuing letters of credit is essentially the same as that involved in extending loan facilities to customers. As of June 30, 2013 and 2012, the maximum potential amount of the Company’s obligation was $420 thousand and $602 thousand, respectively, for financial and standby letters of credit. The Company’s outstanding letters of credit generally have a term of less than one year. If a letter of credit is drawn upon, the Company may seek recourse through the customer’s underlying line of credit. If the customer’s line of credit is also in default, the Company may take possession of the collateral, if any, securing the line of credit.

Lease Obligations

The Company leases certain properties used in operations under terms of operating leases that include renewal options. Rental expense under leases totaled $1.0 million for the year ended June 30, 2013 and $817 thousand for the year ended June 30, 2012.

Approximate future minimum lease payments over the remaining terms of the Company’s leases at June 30, 2013 are as follows for fiscal years ending June 30 (dollars in thousands):

2014	$	1,120
2015	1,168
2016	1,080
2017	939
2018	955
2019 and thereafter	4,279
Total	$	9,541

Legal Proceedings

The Company and its subsidiary are parties to litigation and claims arising in the normal course of business. Management believes that the liabilities, if any, arising from such litigation and claims will not be material to the Company’s consolidated financial position or results of operations.

- Definition

The entire disclosure for commitments and contingencies.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 825
-SubTopic 20
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6449706&loc=d3e16207-108621

Reference 2: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=6398077&loc=d3e12565-110249

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 210
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.5-02.25)
-URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6394976&loc=d3e25287-109308

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Interpretation (FIN)
-Number 14
-Paragraph 3
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 5
-Paragraph 9, 10, 11, 12
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Condensed Parent Information

12 Months Ended

Jun. 30, 2013

Condensed Parent Information

Condensed Parent Information

15. Condensed Parent Information

Condensed financial information for Northeast Bancorp follows:

	June 30, 2013		June 30, 2012
	(Dollars in thousands)
Balance Sheets
Assets:
Cash	$	26,366	$	54,996
Investment in subsidiary	96,294		72,849
Investment in common securities of affiliated trusts	496		496
Other assets	1,445		2,047
Total assets	$	124,601	$	130,388

Liabilities and Stockholders’ Equity:
Junior subordinated debentures issued to affiliated trusts	$	8,268	$	8,106
Other liabilities	2,531		3,143
Total liabilities	10,799		11,249
Stockholders’ equity	113,802		119,139
Total liabilities and stockholders’ equity	$	124,601	$	130,388

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Statements of Income
Income:
Dividends from banking subsidiary	$	—		$	1,500
Other income	14			26
Total income	14			1,526

Expenses:
Interest expense	769			751
General and administrative expenses	1,037			993
Total expenses	1,806			1,744
Loss before income tax benefit and equity in undistributed net income of subsidiary	(1,792		)	(218		)
Income tax benefit	(615		)	(589		)
(Loss) income before equity in undistributed net income of subsidiary	(1,177		)	371
Equity in undistributed net income of subsidiary	5,597			1,792
Net income	$	4,420		$	2,163
Net income available to common stockholders	$	4,065		$	1,771

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Statements of Cash Flow
Operating activities:
Net income	$	4,420		$	2,163
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of fair value adjustment for borrowings	162			149
Stock-based compensation	563			445
Undistributed earnings of subsidiary	(5,597		)	(1,792		)
Increase in other assets and liabilities	70			(700		)
Net cash (used in) provided by operating activities	(382		)	265

Investing activities:
Increase in investment of bank subsidiary	(20,000		)	—
Net cash used in investing activities	(20,000		)	—

Financing activities:
Proceeds from issuance of common stock	(59		)	52,667
Redemption of preferred stock and warrants	(4,326		)	—
Dividends paid to stockholders	(3,863		)	(1,474		)
Net cash (used in) provided by financing activities	(8,248		)	51,193

Net (decrease) increase in cash	(28,630		)	51,458
Cash, beginning of year	54,996			3,538
Cash, end of year	$	26,366		$	54,996

- Definition

The entire disclosure for condensed financial information, including the financial position, cash flows, and the results of operations of the registrant (parent company) as of the same dates or for the same periods for which audited consolidated financial statements are being presented. Alternatively, the details of this disclosure can be reported by the specific parent company taxonomy elements, indicating the appropriate date and period contexts in an instance document.

+ References + Details

Other Comprehensive Income

12 Months Ended

Jun. 30, 2013

Other Comprehensive Income

Other Comprehensive Income

16. Other Comprehensive Income

The components of other comprehensive (loss) income follow:

	Year Ended June 30,
	2013									2012
	Pre-tax			Tax Expense			After-tax			Pre-tax			Tax Expense			After-tax
	Amount			(Benefit)			Amount			Amount			(Benefit)			Amount
	(Dollars in thousands)
Change in net unrealized gain or loss on available-for-sale securities	$	(2,469	)	$	(840	)	$	(1,629	)	$	1,896		$	645		$	1,251
Reclassification adjustment for net gains included in net income	(792		)	(269		)	(523		)	(1,111		)	(378		)	(733		)
Total available-for-sale securities	(3,261		)	(1,109		)	(2,152		)	785			267			518
Change in accumulated loss on effective cash flow hedges	192			66			126			(122		)	(41		)	(81		)
Reclassification adjustment for net gains included in net income	(70		)	(24		)	(46		)	(80		)	(27		)	(53		)
Total derivatives and hedging activities	122			42			80			(202		)	(68		)	(134		)
Total other comprehensive (loss) income	$	(3,139	)	$	(1,067	)	$	(2,072	)	$	583		$	199		$	384

Accumulated other comprehensive (loss) income is comprised of the following components:

	June 30, 2013			June 30, 2012
	(Dollars in thousands)
Unrealized (loss) gain on available-for-sale securities	$	(2,636	)	$	624
Tax effect	896			(212		)
Net-of-tax amount	(1,740		)	412
Unrealized loss on cash flow hedges	(263		)	(384		)
Tax effect	89			130
Net-of-tax amount	(174		)	(254		)
Accumulated other comprehensive (loss) income	$	(1,914	)	$	158

- Definition

The entire disclosure for comprehensive income, which includes, but is not limited to, 1) the amount of income tax expense or benefit allocated to each component of other comprehensive income, including reclassification adjustments, 2) the reclassification adjustments for each classification of other comprehensive income and 3) the ending accumulated balances for each component of comprehensive income.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 15
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e689-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669619-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e716-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e640-108580

Reference 5: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e709-108580

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 505
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.3-04)
-URI http://asc.fasb.org/extlink&oid=6959260&loc=d3e187085-122770

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Reclassification Adjustments
-URI http://asc.fasb.org/extlink&oid=6522872

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
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-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14-26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Fair Value Measurements

12 Months Ended

Jun. 30, 2013

Fair Value Measurements

Fair Value Measurements

17. Fair Value Measurements

Fair value is a market-based measure considered from the perspective of a market participant rather than an entity-specific measure. Therefore, even when market assumptions are not readily available, the Company’s own assumptions are set to reflect those that market participants would use in pricing the asset or liability at the measurement date. If there has been a significant decrease in the volume and level of activity for the asset or liability, regardless of the valuation technique(s) used, the objective of a fair value measurement remains the same. Fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction (that is, not a forced liquidation or distressed sale) between market participants at the measurement date under current market conditions. The Company uses prices and inputs that are current as of the measurement date, including during periods of market dislocation. In periods of market dislocation, the observability of prices and inputs may be reduced for many instruments. This condition could cause an instrument to be reclassified from one level to another.

ASC 820 defines fair value and establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy under ASC 820 are described below:

Level 1 — Inputs are quoted prices (unadjusted) in active markets for identical assets or liabilities that the reporting entity has the ability to access at the measurement date.

Level 2 — Valuations based on significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 — Prices or valuations that require inputs that are both significant to the fair value measurement and unobservable.

To the extent that valuation is based on models or inputs that are less observable or unobservable in the market, the determination of fair value requires more judgment. Accordingly, the degree of judgment exercised by the Company in determining fair value is greatest for instruments categorized in Level 3. A financial instrument’s level within the fair value hierarchy is based on the lowest level of any input that is significant to the fair value measurement.

Valuation techniques - There have been no changes in the valuation techniques used during the current period.

Transfers — There were no transfers of assets and liabilities measured at fair value on a recurring or nonrecurring basis during the current period.

Assets and Liabilities Measured at Fair Value on a Recurring Basis:

Available-for-sale securities - Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Examples of such instruments include publicly-traded common and preferred stocks. If quoted prices are not available, then fair values are estimated by using pricing models (i.e., matrix pricing) and market interest rates and credit assumptions or quoted prices of securities with similar characteristics and are classified within Level 2 of the valuation hierarchy. Examples of such instruments include government agency and government sponsored agency mortgage-backed securities, as well as certain preferred and trust preferred stocks. Level 3 securities are securities for which significant unobservable inputs are utilized.

Derivative financial instruments - The valuation of the Company’s interest rate swaps and caps are determined using widely accepted valuation techniques including discounted cash flow analyses on the expected cash flows of derivatives. These analyses reflect the contractual terms of the derivatives, including the period to maturity, and use observable market-based inputs, including interest rate curves and implied volatilities. Unobservable inputs, such as credit valuation adjustments are insignificant to the overall valuation of the Company’s derivative financial instruments. Accordingly, the Company has determined that its interest rate derivatives fall within Level 2 of the fair value hierarchy.

The fair value of derivative loan commitments and forward loan sale agreements are estimated using the anticipated market price based on pricing indications provided from syndicate banks. These commitments and agreements are categorized as Level 2. The fair value of such instruments was nominal at each date presented.

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis:

Impaired Loans - Valuations of impaired loans measured at fair value are determined by a review of collateral values. Certain inputs used in appraisals are not always observable, and therefore impaired loans are generally categorized as Level 3 within the fair value hierarchy.

Real Estate Owned and Other Repossessed collateral - The fair values of real estate owned and other repossessed collateral are estimated based upon appraised values less estimated costs to sell. Certain inputs used in appraisals are not always observable, and therefore may be categorized as Level 3 within the fair value hierarchy. When inputs used in appraisals are primarily observable, they are classified as Level 2.

Fair Value of other Financial Instruments:

Cash and cash equivalents - The fair value of cash, due from banks, interest bearing deposits and FHLB overnight deposits approximates their relative book values, as these financial instruments have short maturities.

FHLB and Federal Reserve stock - The carrying value of FHLB stock and Federal Reserve stock approximates fair value based on redemption provisions of the FHLB and the Federal Reserve.

Loans - Fair values are estimated for portfolios of loans with similar financial characteristics. The fair value of performing loans is calculated by discounting scheduled cash flows through the estimated maturity using estimated market discount rates that reflect the credit and interest rate risk inherent in the loan. The estimates of maturity are based on the Company’s historical experience with repayments for each loan classification, modified, as required, by an estimate of the effect of current economic conditions, lending conditions and the effects of estimated prepayments.

Loans held for sale - The fair value of loans held-for-sale is estimated based on bid quotations received from loan dealers.

Interest receivable - The fair value of this financial instrument approximates the book value as this financial instrument has a short maturity. It is the Company’s policy to stop accruing interest on loans past due by more than 90 days. Therefore, this financial instrument has been adjusted for estimated credit loss.

Deposits - The fair value of deposits with no stated maturity, such as noninterest-bearing demand deposits, savings, NOW accounts and money market accounts, is equal to the amount payable on demand. The fair values of time deposits are based on the discounted value of contractual cash flows. The discount rate is estimated using the rates currently offered for deposits of similar remaining maturities. The fair value estimates do not include the benefit that results from the low-cost funding provided by the deposit liabilities compared to the cost of borrowing funds in the market. If that value were considered, the fair value of the Company’s net assets could increase.

Borrowings - The fair value of the Company’s borrowings with the FHLB is estimated by discounting the cash flows through maturity or the next repricing date based on current rates available to the Company for borrowings with similar maturities. The fair value of the Company’s short-term borrowings, capital lease obligations, wholesale repurchase agreements and other borrowings is estimated by discounting the cash flows through maturity based on current rates available to the Company for borrowings with similar maturities.

Off-Balance Sheet Credit-Related Instruments - Fair values for off-balance-sheet, credit-related financial instruments are based on fees currently charged to enter into similar agreements, taking into account the remaining terms of the agreements and the counterparties’ credit standing. The fair value of such instruments was nominal at each date presented.

Assets and liabilities measured at fair value on a recurring basis are summarized below.

	June 30, 2013
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale:
U.S. Government agency securities	$	45,333	$	—	$	45,333	$	—
Agency mortgage-backed securities	76,264		—		76,264		—
Other assets — interest rate caps	—		—		—		—
Liabilities
Other liabilities - interest rate swap	$	389	$	—	$	389	$	—

	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale:
U.S. Government agency securities	$	45,808	$	—	$	45,808	$	—
Agency mortgage-backed securities	87,456		—		87,456		—
Other assets —interest rate caps	1		—		1		—
Liabilities
Other liabilities - interest rate swap	$	580	$	—	$	580	$	—

Assets measured at fair value on a nonrecurring basis are summarized below.

	June 30, 2013
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Collateral dependent impaired loans	$	894	$	—	$	—	$	894
Real estate owned and other repossessed collateral	2,134		—		—		2,134

	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Collateral dependent impaired loans	$	1,103	$	—	$	—	$	1,103
Real estate owned and other repossessed collateral	834		—		—		834

The following table presents the estimated fair value of the Company’s financial instruments.

	Carrying		Fair Value Measurements at June 30, 2013
	Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	65,934	$	65,934	$	65,934	$	—	$	—
Available-for-sale securities	121,597		121,597		—		121,597		—
Regulatory stock	5,721		5,721		—		5,721		—
Loans held for sale	8,594		8,602		—		8,602		—
Loans, net	434,233		444,988		—		—		444,988
Accrued interest receivable	1,396		1,396		—		1,396		—
Interest rate caps	—		—		—		—		—

Financial liabilities:
Deposits	484,623		449,857		—		449,857		—
FHLB advances	28,040		29,404		—		29,404		—
Wholesale repurchase agreements	25,397		26,092		—		26,092		—
Short-term borrowings	625		625		—		625		—
Capital lease obligation	1,739		1,926		—		1,926		—
Subordinated debentures	8,268		7,594		—		—		7,594
Interest rate swaps	389		389		—		389		—

	Carrying		Fair Value Measurements at June 30, 2012
	Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	128,274	$	128,274	$	128,274	$	—	$	—
Available-for-sale securities	133,264		133,264		—		133,264		—
Regulatory stock	5,473		5,473		—		5,473		—
Loans held for sale	9,882		9,896		—		9,896		—
Loans, net	355,430		374,062		—		—		374,062
Accrued interest receivable	1,840		1,840		—		1,840		—
Interest rate caps	1		1		—		1		—

Financial liabilities:
Deposits	422,188		425,782		—		425,782		—
FHLB advances	43,450		45,747		—		45,747		—
Wholesale repurchase agreements	66,183		67,314		—		67,314		—
Short-term borrowings	1,209		1,209		—		1,209		—
Capital lease obligation	1,911		2,202		—		2,202		—
Subordinated debentures	8,106		8,597		—		—		8,597
Interest rate swaps	580		580		—		580		—

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References

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+ Details

Derivatives

12 Months Ended

Jun. 30, 2013

Derivatives

Derivatives

18. Derivatives

The Company has stand alone derivative financial instruments in the form of interest rate caps that derive their value from a fee paid and are adjusted to fair value based on index and strike rate, and a swap agreement that derives its value from the underlying interest rate. These transactions involve both credit and market risk. The notional amounts are amounts on which calculations, payments and the value of the derivative are based. Notional amounts do not represent direct credit exposures. Direct credit exposure is limited to the net difference between the calculated amounts to be received and paid, if any. Such differences, which represent the fair value of the derivative instruments, are reflected on the Company’s balance sheet as derivative assets and derivative liabilities.

The Company is exposed to credit-related losses in the event of nonperformance by the counterparties to these agreements. The Company controls the credit risk of its financial contracts through credit approvals, limits and monitoring procedures, and does not expect any counterparties to fail their obligations. Institutional counterparties must have an investment grade credit rating and be approved by the Company’s Board of Directors. The Company deals only with primary dealers. The Company’s credit exposure on interest rate swaps is limited to the net positive fair value and accrued interest of all swaps with each counterparty.

The Company currently holds derivative instruments that contain credit-risk related features that are in a net liability position, which may require that collateral be assigned to dealer banks. At June 30, 2013 and 2012, the Company had cash totaling $800 thousand in a margin account with the dealer bank associated with its interest rate swap; no additional collateral was necessary at these dates to immediately settle the interest rate swap.

The Company does not offset fair value amounts recognized for derivative instruments. The Company does not net the amount recognized for the right to reclaim cash collateral against the obligation to return cash collateral arising from derivative instruments executed with the same counterparty under a master netting arrangement.

Risk Management Policies — Hedging Instruments

The Company evaluates the effectiveness of entering into any derivative instrument agreement by measuring the cost of such an agreement in relation to the reduction in net income volatility within an assumed range of interest rates.

Interest Rate Risk Management — Cash Flow Hedging Instruments

The Company uses long-term variable rate debt as a source of funds for use in the Company’s lending and investment activities and other general business purposes. These debt obligations expose the Company to variability in interest payments due to changes in interest rates. If interest rates increase, interest expense increases. Conversely, if interest rates decrease, interest expense decreases. Management believes it is prudent to limit the variability of a portion of its interest payments and, therefore, generally hedges a portion of its variable-rate interest payments. To meet this objective, management entered into interest rate caps whereby the Company receives variable interest payments above a specified interest rate and swap agreements whereby the Company receives variable interest rate payments and makes fixed interest rate payments during the contract period.

The Company holds two interest rate caps that expire on September 30, 2014. The swap agreement provides for the Company to receive payments at a variable rate determined by a specified index (three month LIBOR) in exchange for making payments at a fixed rate.

Information pertaining to outstanding interest rate caps and swap agreements used to hedge variable rate debt is as follows.

During the years ended June 30, 2013 and 2012, no interest rate cap or swap agreements were terminated prior to maturity. Changes in the fair value of interest rate caps and swaps designated as hedging instruments of the variability of cash flows associated with long-term debt are reported in other comprehensive income. These amounts subsequently are reclassified into interest expense as a yield adjustment in the same period in which the related interest on the long-term debt affects earnings. Risk management results for the year ended June 30, 2013 and 2012 related to the balance sheet hedging of long-term debt indicates that the hedges were effective.

The table below presents amounts recognized in income related to both hedge ineffectiveness and amounts excluded from effectiveness testing.

	Year ended June 30,
	2013			2012
	(Dollars in thousands)
Interest income (expense):
Interest rate caps	$	(30	)	$	(20	)
Interest rate swap	100			100
Total	$	70		$	80

The Company expects to record interest income of $100 thousand related to interest rate swap ineffectiveness in the next twelve months. The Company expects to record interest expense of $32 thousand related to its purchased interest rate caps in the next twelve months.

Information pertaining to outstanding interest rate caps and swap agreements used to hedge variable rate debt is as follows.

	June 30, 2013						June 30, 2012
	Interest			Interest			Interest			Interest
	Rate Caps			Rate Swap			Rate Caps			Rate Swap
	(Dollars in thousands)
Notional amount	$	6,000		$	10,000		$	6,000		$	10,000
Weighted average pay rate				4.69		%				4.69		%
Weighted average receive rate				2.25		%				2.36		%
Strike rate based on three month LIBOR	2.51		%				2.51		%
Weighted average maturity in years	1.25			1.67			2.25			2.67
Unrealized loss	$	40		$	223		$	69		$	315

The following sets forth the fair values and location of derivatives designated as hedging instruments.

Liability Derivatives	Balance Sheet Location	Fair Value
Interest rate swap	Other liabilities	$	389

Liability Derivatives	Balance Sheet Location	Fair Value
Interest rate swap	Other liabilities	$	580

- Definition

The entire disclosure for the entity's entire derivative instruments and hedging activities. Describes an entity's risk management strategies, derivatives in hedging activities and non-hedging derivative instruments, the assets, obligations, liabilities, revenues and expenses arising therefrom, and the amounts of and methodologies and assumptions used in determining the amounts of such items.

+ References

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+ Details

Troubled Asset Relief Capital Purchase Program	12 Months Ended
Troubled Asset Relief Capital Purchase Program	Jun. 30, 2013
Troubled Asset Relief Capital Purchase Program
Troubled Asset Relief Capital Purchase Program	19. Troubled Asset Relief Capital Purchase Program During the quarter ended December 31, 2012, the Company paid $4.2 million to redeem, at par value, all shares of preferred stock issued to the U.S. Department of the Treasury (the “UST”) under the Troubled Asset Relief Program (“TARP”). The Company also repurchased the warrant for 67,958 shares of common stock issued to the UST in connection with TARP for $95 thousand during the quarter ended December 31, 2012.

Discontinued Operations

12 Months Ended

Jun. 30, 2013

Discontinued Operations

Discontinued Operations

20. Discontinued Operations

On August 31, 2011, the Company sold customer lists and certain fixed assets of NBIG to local insurance agencies in two separate transactions. The operations of the Company’s wholly-owned subsidiary, Northeast Bank Insurance Group (“NBIG”), have been reclassified as discontinued operations in the consolidated statements of income for the year ended June 30, 2012, with no effect on previously reported net income or stockholders’ equity.

The following is a summary of the sale transactions (dollars in thousands).

Sale proceeds	$	9,889
Less:
Customer lists and other intangible assets, net	7,380
Fixed assets, net of accumulated depreciation	164
Severance and other direct expenses	779
Pre-tax gain recognized	$	1,566

The following summarizes the operations of NBIG.

	Year Ended June 30,
	2013		2012
	(Dollars in thousands)
Interest expense	$	—	$	14

Noninterest income:
Insurance commissions	—		965
Other noninterest income (expense)	—		(4		)
Total noninterest income	—		961

Noninterest expense:
Salaries and employee benefits	—		494
Occupancy and equipment expense	—		88
Professional fees	—		16
Data processing fees	—		38
Intangible assets amortization	—		68
Other	—		57
Total noninterest expense	—		761

Income from discontinued operations	—		186
Gain on sale of assets	—		1,566
Income from discontinued operations before income tax expense	—		1,752
Income tax expense	—		605
Net income from discontinued operations	$	—	$	1,147

- Definition

The entire disclosure for the facts and circumstances leading to the completed or expected disposal, manner and timing of disposal, the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the segment in which the disposal group was reported, and the classification (whether sold or classified as held for sale) and carrying value of the assets and liabilities comprising the disposal group. Includes all disposal groups, including those classified as components of the entity (discontinued operations).

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+ Details

Subsequent Events	12 Months Ended
Subsequent Events	Jun. 30, 2013
Subsequent Events
Subsequent Events	21. Subsequent Events The Company has evaluated the impact of events that have occurred subsequent to June 30, 2013 through the date the consolidated financial statements were filed with the United States Securities and Exchange Commission. Based on this evaluation, the Company has determined none of these events were required to be recognized or disclosed in the consolidated financial statements and related notes.

Summary of Significant Accounting Policies (Policies)	12 Months Ended
Summary of Significant Accounting Policies (Policies)	Jun. 30, 2013
Summary of Significant Accounting Policies
Business Combination Accounting	Business Combination Accounting On December 29, 2010, the Company merged with FHB Formation LLC (the “Merger”). The Company applied the acquisition method of accounting to this business combination, which represented an acquisition by FHB Formation LLC (“FHB”) of Northeast, with Northeast as the surviving company. Under the acquisition method, the acquiring entity in a business combination recognizes the assets acquired and liabilities assumed at their acquisition date fair values. Management utilizes valuation techniques appropriate for the asset or liability being measured in determining these fair values. Any excess of the purchase price over amounts allocated to assets acquired, including identifiable intangible assets, and liabilities assumed is recorded as goodwill. In the Merger, amounts allocated to assets acquired and liabilities assumed were greater than the purchase price, which resulted in the recognition of a bargain purchase gain. Acquisition-related costs were expensed as incurred.
Principles of Consolidation	Principles of Consolidation The accompanying consolidated financial statements include the accounts of Northeast Bancorp, and its wholly-owned subsidiary, Northeast Bank (including the Bank’s wholly-owned subsidiaries). All significant intercompany transactions and balances have been eliminated in consolidation. NBN Capital Trust II, NBN Capital Trust III and NBN Capital Trust IV are considered affiliates and are deconsolidated pursuant to criteria established by Accounting Standards Codification (“ASC”) 810, Consolidation (“ASC 810”). The investments in these affiliates were $496 thousand in aggregate and are included in other assets.
Reclassifications	Reclassifications Certain previously reported amounts have been reclassified to conform to the current year’s presentation.
Use of Estimates	Use of Estimates The financial statements have been prepared in conformity with GAAP. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities and the disclosure of contingent assets and liabilities as of the date of the statement of financial condition and income and expenses for the period. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant change relate to the determination of the allowance for loan losses, the determination of fair values in conjunction with the application of acquisition accounting, and the on-going evaluation of assets for potential impairment.
Concentrations of Credit Risk	Concentrations of Credit Risk Most of the Company’s business activity is with customers located within the State of Maine. However, the Company’s loan purchasing activities are diversified across the country. In all regions, the Company has emphasized the origination and purchase of commercial real estate loans. Repayment of loans is expected to come from cash flows of the borrower. Losses on secured loans are limited by the value of the collateral upon default of the borrowers. The Company does not have any significant concentrations to any one industry or customer.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of presentation in the consolidated statements of cash flow, cash and cash equivalents consist of cash and due from banks and short-term investments. The Company is required to maintain a certain reserve balance in the form of cash or deposits with other financial institutions. At June 30, 2013 and 2012, such reserve balances totaled $5.3 million and $3.8 million, respectively.
Investment Securities	Investment Securities Securities for which the Company has the positive intent and ability to hold to maturity are classified as held to maturity and carried at amortized cost. Those securities held for indefinite periods of time but not necessarily to maturity are classified as available for sale. Securities held for indefinite periods of time include securities that management intends to use as part of its asset/liability, liquidity, or capital management strategies and may be sold in response to changes in interest rates, maturities, asset/liability mix, liquidity needs, regulatory capital needs or other business factors. Securities available for sale are carried at estimated fair value with unrealized gains and losses reported on an after-tax basis in stockholders’ equity as accumulated other comprehensive income or loss. Interest and dividends on securities are recorded on the accrual method. Premiums and discounts on securities are amortized or accreted into interest income by the level-yield method over the remaining period to contractual maturity, adjusted for the effect of actual prepayments in the case of mortgage-backed securities. These estimates of prepayment assumptions are made based upon the actual performance of the underlying security, current interest rates, the general market consensus regarding changes in mortgage interest rates, the contractual repayment terms of the underlying loans, the priority rights of the investors to the cash flows from the mortgage securities and other economic conditions. When differences arise between anticipated prepayments and actual prepayments, the effective yield is recalculated to reflect actual payments to date and anticipated future payments. Unamortized premium or discount is adjusted to the amount that would have existed had the new effective yield been applied since purchase, with a corresponding charge or credit to interest income. Security transactions are recorded on the trade date. Realized gains and losses are determined using the specific identification method and are recorded in non-interest income. Management evaluates securities for other-than-temporary impairment on a periodic basis. Factors considered in determining whether an impairment is other-than-temporary include: (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 and (3) the intent and ability of the Company to hold the investment for a period of time sufficient to allow for any anticipated recovery in fair value. If the Company intends to sell an impaired security, the Company records an other-than-temporary loss in an amount equal to the entire difference between the fair value and amortized cost. If a security is determined to be other-than-temporarily impaired but the Company does not intend to sell the security, only the credit portion of the estimated loss is recognized in earnings, with the other portion of the loss recognized in other comprehensive income.
Federal Home Loan Bank and Federal Reserve Bank Stock	Federal Home Loan Bank and Federal Reserve Bank Stock The Company owns investments in the stock of the FRB and the Federal Home Loan Bank of Boston (“FHLBB”). No ready market exists for these stocks, and they have no quoted market values. FRB stock is redeemable at par; therefore, fair value equals cost. The Bank, as a member of the FHLBB, is required to maintain investments in the capital stock of the FHLBB equal to their membership base investments plus an activity-based investment determined according to the Bank’s level of outstanding FHLBB advances. The Company reviews its investments in FHLBB and FRB stock periodically to determine if other-than-temporary impairment exists. The Company reviews recent public filings, rating agency analysis and other factors, when making the determination.
Loans Held for Sale and Loan Servicing	Loans Held for Sale and Loan Servicing Residential real estate mortgage loans are designated as held for sale based on intent, which is determined when loans are underwritten. Loans originated and held for sale in the secondary market are carried at the lower of cost or fair value. Realized gains and losses on sales of loans are determined using the specific identification method. Direct loan originations costs and fees related to loans held for sale are deferred upon origination and are recognized on the date of sale. In its mortgage banking activities, the Company sells loans both on a servicing released and servicing retained basis. The Company recognizes as separate assets the rights to service mortgage loans for others, and performs an assessment of capitalized mortgage servicing rights for impairment based on the current fair value of those rights. The Company capitalizes mortgage servicing rights at their allocated cost (based on the relative fair values of the rights and the related loans) upon the sale of the related loans. Mortgage servicing rights are amortized over the estimated weighted average life of the loans. The Company’s assumptions with respect to prepayments, which affect the estimated average life of the loans, are adjusted periodically to reflect current circumstances. The Company evaluates the estimated life and fair value of its servicing portfolio based on data that is disaggregated to reflect note rate, type, and term on the underlying loans. In connection with loans to be held for sale, the Company often offers interest rate lock commitments to prospective borrowers. The Company manages this interest rate risk by entering into offsetting forward sale agreements with third party investors for certain funded loans and loan commitments. The Company uses “best efforts” forward loan sale commitments to mitigate the risk of potential decreases in the values of loans that would result from the exercise of the derivative loan commitments.
Loans	Loans Loans are carried at the principal amounts outstanding, or amortized acquired fair value in the case of acquired loans, adjusted by partial charge-offs and net of deferred loan costs or fees. Loan fees and certain direct origination costs are deferred and amortized into interest income over the expected term of the loan using the level-yield method. When a loan is paid off, the unamortized portion is recognized in interest income. Interest income is accrued based upon the daily principal amount outstanding except for loans on nonaccrual status. All loans purchased by the Company in the secondary market by the Bank’s Loan Acquisition and Servicing Group (“LASG”) are accounted for under ASC 310-30, Receivables — Loans and Debt Securities Acquired with Deteriorated Credit Quality (“ASC 310-30”). At acquisition, the effective interest rate is determined based on the discount rate that equates the present value of the Company’s estimate of cash flows with the purchase price of the loan. Prepayments are not assumed in determining a purchased loan’s effective interest rate and income accretion. The application of ASC 310-30 limits the yield that may be accreted on the purchased loan, or the “accretable yield,” to the excess of the Company’s estimate, at acquisition, of the expected undiscounted principal, interest, and other cash flows over the Company’s initial investment in the loan. The excess of contractually required payments receivable over the cash flows expected to be collected on the loan represents the purchased loan’s “nonaccretable difference.” Subsequent improvements in expected cash flows of loans with nonaccretable differences result in a prospective increase to the loan’s effective yield through a reclassification of some, or all, of the nonaccretable difference to accretable yield. The effect of subsequent declines in expected cash flows of purchased loans are recorded through a specific allocation in the allowance for loan losses. Loans are generally placed on nonaccrual status when they are past due 90 days as to either principal or interest, or when in management’s judgment the collectability of interest or principal of the loan has been significantly impaired. Loans accounted for under ASC 310-30 are placed on nonaccrual when it is not possible to reach a reasonable expectation of the timing and amount of cash flows to be collected on the loan. When a loan has been placed on nonaccrual status, previously accrued and uncollected interest is reversed against interest on loans. Interest on nonaccrual loans is accounted for on a cash-basis or using the cost-recovery method when collectability is doubtful. A loan is returned to accrual status when collectability of principal is reasonably assured and the loan has performed for a reasonable period of time. In cases where a borrower experiences financial difficulties and the Company makes certain concessionary modifications to contractual terms, the loan is classified as a troubled debt restructuring (“TDR”). Concessionary modifications may include adjustments to interest rates, extensions of maturity, and other actions intended to minimize economic loss and avoid foreclosure or repossession of collateral. For loans accounted for under ASC 310-30, the Company evaluates whether it has granted a concession by comparing the restructured debt terms to the expected cash flows at acquisition plus any additional cash flows expected to be collected arising from changes in estimate after acquisition. As a result, if an ASC 310-30 loan is modified to be consistent with, or better than, the Company’s expectations at acquisition, the loan would not qualify as a TDR. Nonaccrual loans that are restructured generally remain on nonaccrual for a minimum period of six months to demonstrate that the borrower can meet the restructured terms. If the restructured loan is on accrual status prior to being modified, it is reviewed to determine if the modified loan should remain on accrual status. If the borrower’s ability to meet the revised payment schedule is not reasonably assured, the loan is classified as a nonaccrual loan. With limited exceptions, loans classified as TDRs remain classified as such until the loan is paid off.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses is established as losses are estimated to have occurred through a provision for loan losses charged to earnings. For residential and consumer loans, a charge-off is recorded no later than 180 days past due if the loan balance exceeds the fair value of the collateral, less costs to sell. For commercial loans, a charge-off is recorded on a case-by-case basis when all or a portion of the loan is deemed to be uncollectible. Subsequent recoveries, if any, are credited to the allowance. The allowance for loan losses consists of general, specific, and unallocated reserves and reflects management’s estimate of probable loan losses inherent in the loan portfolio at the balance sheet date. Management uses a consistent and systematic process and methodology to evaluate the adequacy of the allowance for loan losses on a quarterly basis. The calculation of the allowance for loan losses is segregated by portfolio segments, which include: commercial real estate, commercial business, consumer, residential real estate, and purchased loans. Risk characteristics relevant to each portfolio segment are as follows: Residential real estate: All loans in this segment are collateralized by residential real estate and repayment is primarily dependent on the credit quality of the individual borrower. The overall health of the economy, particularly unemployment rates and housing prices, has a significant effect on the credit quality in this segment. For purposes of the Company’s allowance for loan loss calculation, home equity loans and lines of credit are included in residential real estate. Commercial real estate: Loans in this segment are primarily income-producing properties. For owner-occupied properties, the cash flows are derived from an operating business, and the underlying cash flows may be adversely affected by deterioration in the financial condition of the operating business. The underlying cash flows generated by non-owner occupied properties may be adversely affected by increased vacancy rates. Management periodically obtains rent rolls, with which it monitors the cash flows of these loans. Adverse developments in either of these areas will have an adverse effect on the credit quality of this segment. For purposes of the allowance for loan losses, this segment also includes construction loans. Commercial business: Loans in this segment are made to businesses and are generally secured by the assets of the business. Repayment is expected from the cash flows of the business. Continued weakness in national or regional economic conditions, and a corresponding weakness in consumer or business spending, will have an adverse effect on the credit quality of this segment. Consumer: Loans in this segment are generally secured, and repayment is dependent on the credit quality of the individual borrower. Repayment of consumer loans is generally based on the earnings of individual borrowers, which may be adversely impacted by regional labor market conditions. Purchased: Loans in this segment are secured by commercial real estate, multi-family residential real estate, or business assets and have been acquired by the LASG. Loans acquired by the LASG are, with limited exceptions, performing loans at the date of purchase. Loans in this segment acquired with specific material credit deterioration since origination are identified as purchased credit-impaired. Repayment of loans in this segment is largely dependent on cash flow from the successful operation of the property, in the case of non-owner occupied property, or operating business, in the case of owner-occupied property. Loan performance may be adversely affected by factors affecting the general economy or conditions specific to the real estate market, such as geographic location or property type. Loans in this segment are evaluated for impairment under ASC 310-30. The Company reviews expected cash flows from purchased loans on a quarterly basis. The effect of a decline in expected cash flows subsequent to the acquisition of the loan is recognized through a specific allocation in the allowance for loan losses. The general component of the allowance for loan losses is based on historical loss experience adjusted for qualitative factors stratified by loan segment. The Company does not weight periods used in that analysis to determine the average loss rate in each portfolio segment. This historical loss factor is adjusted for the following qualitative factors: · Levels and trends in delinquencies · Trends in the volume and nature of loans · Trends in credit terms and policies, including underwriting standards, procedures and practices, and the experience and ability of lending management and staff · Trends in portfolio concentration · National and local economic trends and conditions. · Effects of changes or trends in internal risk ratings · Other effects resulting from trends in the valuation of underlying collateral There were no significant changes in the Company’s policies or methodology pertaining to the general component of the allowance for loan losses during the years ended June 30, 2013 or 2012. The allocated component of the allowance for loan losses relates to loans that are classified as impaired. Impairment is measured on a loan-by-loan basis for commercial business and commercial real estate loans by either the present value of expected future cash flows discounted at the loan’s effective interest rate or the fair value of the collateral if the loan is collateral dependent. An allowance is established when the discounted cash flows or collateral value of the impaired loan is lower than the carrying value of that loan. Large groups of smaller-balance homogeneous loans, such as consumer and residential real estate loans are collectively evaluated for impairment based on the group’s historical loss experience adjusted for qualitative factors. Accordingly, the Company does not separately identify individual consumer and residential loans for individual impairment and disclosure. However, all loans modified in troubled debt restructurings are individually reviewed for impairment. For all portfolio segments, except the purchased loan segment, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. Loans that experience insignificant payment delays and payment shortfalls generally are not classified as impaired. Management determines the significance of payment delays and payment shortfalls on a case-by-case basis, taking into consideration all of the circumstances surrounding the loan and the borrower, including the length of the delay, the reasons for the delay, the borrower’s prior payment record, and the amount of the shortfall in relation to the principal and interest owed. For the purchased loan segment, a loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to realize cash flows as estimated at acquisition. Loan impairment of purchased loans is measured based on the decrease in expected cash flows from those estimated at acquisition, excluding changes due to decreases in interest rate indices, discounted at the loan’s effective rate assumed at acquisition. Factors considered by management in determining impairment include payment status, collateral value, and the probability of the collecting scheduled principal and interest payments when due.
Premises and Equipment	Premises and Equipment Premises and equipment are stated at cost less accumulated depreciation. Depreciation is computed by the straight-line method over the estimated useful lives of the assets. Premises and equipment under capital leases are amortized over the estimated useful lives of the assets or the respective lease terms, whichever is shorter. Maintenance and repairs are charged to expense as incurred and the cost of major renewals and betterments are capitalized.
Intangible Assets	Intangible Assets Identifiable intangible assets subject to amortization are amortized over the estimated lives of the intangibles using a method that approximates the amount of economic benefits that are realized by the Company. Identifiable intangible assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount of the assets may not be recoverable.
Real Estate Owned and Other Repossessed Collateral	Real Estate Owned and Other Repossessed Collateral Assets in control of the Company or acquired through foreclosure or repossession are held for sale and are initially recorded at fair value less cost to sell at the date control is established, resulting in a new cost basis. The amount by which the recorded investment in the loan exceeds the fair value (net of estimated cost to sell) of the foreclosed asset is charged to the allowance for loan losses. Subsequent declines in the fair value of the foreclosed asset below the new cost basis are recorded through the use of a valuation allowance or through a direct write-off. Subsequent increases in the fair value may only be recorded to the extent of any previously recognized valuation allowance. Rental revenue received on foreclosed assets is included in other noninterest income, whereas operating expenses and changes in the valuation allowance relating to foreclosed assets are included in other noninterest expense.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets, including premises and equipment, for impairment whenever events or changes in business circumstances indicate that the remaining useful life may warrant revision or that the carrying amount of the long-lived asset may not be fully recoverable. The Company performs undiscounted cash flow analyses to determine if impairment exists. If impairment is determined to exist, any related impairment loss is calculated based on fair value. Impairment losses on assets to be disposed of, if any, are based on the estimated proceeds to be received, less costs of disposal.
Bank Owned Life Insurance	Bank Owned Life Insurance Increases in the cash surrender value of life insurance policies, as well as death benefits received net of any cash surrender value, are recorded in other noninterest income, and are not subject to income taxes. The cash surrender value of the policies not previously endorsed to participants are recorded as assets of the Company. Any amounts owed to participants relating to these policies are recorded as liabilities of the Company. The Company reviews the financial strength of the insurance carriers prior to the purchase of life insurance policies and no less than annually thereafter.
Income Taxes	Income Taxes Deferred tax assets and liabilities are recognized for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets and liabilities are measured using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. The effect on deferred tax assets and liabilities of a change in tax rates is recognized in the period that includes the enactment date. The Company’s policy is to recognize interest and penalties assessed on tax positions in income tax expense.
Advertising Expense	Advertising Expense Advertising costs are expensed as incurred.
Stock-Based Compensation	Stock-Based Compensation The Company’s stock-based compensation plans provide for awards of stock options, restricted stock and other stock-based compensation to directors, officers and employees. The cost of employee services received in exchange for awards of equity instruments is based on the grant-date fair value of those awards. Compensation cost is recognized over the requisite service period as a component of compensation expense. For awards with graded-vesting, compensation cost is recognized on a straight-line basis over the requisite service period for the entire award. The Company uses the Black-Scholes model to estimate the fair value of stock options, while the market price of the Company’s common stock at the date of grant is used for restricted stock awards.
Discontinued Operations	Discontinued Operations During the first quarter of fiscal 2012, substantially all of the assets of the Company’s insurance division, Northeast Bank Insurance Group, Inc. (“NBIG”) were sold in two separate transactions. The results of NBIG are classified as discontinued operations in the statements of income for each period presented. The Company has eliminated all intercompany transactions related to discontinued operations for each period presented.
Comprehensive Income	Comprehensive Income Comprehensive income consists of net income and other comprehensive income. Other comprehensive income includes unrealized gains and losses on securities available for sale, unrealized losses related to factors other than credit on debt securities, unrealized gains and losses on cash flow hedges and deferred gains on hedge accounting transactions.
Earnings Per Share	Earnings Per Share Basic earnings per share is calculated using the two-class method. The two-class method is an earnings allocation formula under which earnings per share is calculated from common stock and participating securities according to dividends declared and participation rights in undistributed earnings. Under this method, all earnings distributed and undistributed, are allocated to participating securities and common shares based on their respective rights to receive dividends. Unvested share-based payment awards that contain non-forfeitable rights to dividends are considered participating securities (i.e. unvested restricted stock), not subject to performance based measures. Basic earnings per share is calculated by dividing net income available to common shareholders by the weighted average number of common shares outstanding (inclusive of participating securities). Diluted earnings per share have been calculated in a manner similar to that of basic earnings per share except that the weighted average number of common shares outstanding is increased to include the number of additional common shares that would have been outstanding if all potentially dilutive common shares (such as those resulting from the exercise of stock options or the attainment of performance measures) were issued during the period, computed using the treasury stock method.
Derivatives	Derivatives Derivative instruments are carried at fair value in the Company’s financial statements. The accounting for changes in the fair value of a derivative instrument is determined by whether it has been designated and qualifies as part of a hedging relationship, and further, by the type of hedging relationship. For those derivative instruments that are designated and qualify as hedging instruments, the Company designates the hedging instrument, based upon the exposure being hedged, as either a fair value hedge or a cash flow hedge. For derivative instruments that are designated and qualify as a cash flow hedge (i.e., hedging the exposure to variability in expected future cash flows that is attributable to a particular risk), the effective portion of the gain or loss on the derivative instrument is reported as a component of other comprehensive income, net of related tax, and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings. The remaining gain or loss on the derivative instrument in excess of the cumulative change in the present value of future cash flows of the hedged item (i.e., the ineffective portion), if any, is recognized in current earnings during the period. For derivative instruments designated and qualifying as a fair value hedge (i.e., hedging the exposure to changes in the fair value of an asset or liability or an identified portion thereof that is attributable to the hedged risk), the gain or loss on the derivative instrument, as well as the offsetting gain or loss on the hedged item attributable to the hedged risk, are recognized in current earnings during the period of the change in fair values. For derivative instruments not designated as hedging instruments, the gain or loss on the derivative is recognized in current earnings during the period of change. At the inception of a hedge, the Company documents certain items, including but not limited to the following: the relationship between hedging instruments and hedged items, Company risk management objectives, hedging strategies, and the evaluation of hedge transaction effectiveness. Documentation includes linking all derivatives designated as fair value or cash flow hedges to specific assets and liabilities on the balance sheet or to specific forecasted transactions. Hedge accounting is discontinued prospectively when (1) a derivative is no longer highly effective in offsetting changes in the fair value or cash flow of a hedged item, (2) a derivative expires or is sold, (3) a derivative is de-designated as a hedge, because it is unlikely that a forecasted transaction will occur, or (4) it is determined that designation of a derivative as a hedge is no longer appropriate.
Transfer of Financial Assets	Transfer of Financial Assets Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In December 2011, the Financial Accounting Standards Board (“FASB”) issued ASU No. 2011-11, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2011-11”). The update requires entities to disclose information about offsetting and related arrangements of financial instruments and derivative instruments. The amendments require enhanced disclosures by requiring improved information about financial instruments and derivative instruments that are either (i) offset in accordance with current literature or (ii) subject to an enforceable master netting arrangement or similar agreement, irrespective of whether they are offset in accordance with current literature. ASU 2011-11 is effective for fiscal years, and interim periods within those years, beginning on or after January 1, 2013. The Company does not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements. In June 2011, the FASB issued ASU No. 2011-05, Comprehensive Income (Topic 220): Presentation of Comprehensive Income (“ASU 2011-05”). The objective of this update is to improve the comparability, consistency, and transparency of financial reporting and to increase the prominence of items reported in other comprehensive income. The amendments in this update require that all non-owner changes in stockholders’ equity be presented either in as single continuous statement of comprehensive income or in two separate but consecutive statements. The amendments are effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the consolidated financial statements. In December 2011, the FASB issued ASU No. 2011-12, Comprehensive Income (Topic 220): Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05. The amendments in this update defer those changes in ASU 2011-05 that relate to the presentation of reclassifications out of accumulated other comprehensive income on the components of net income and other comprehensive income for all periods presented. All other requirements in ASU 2011-05 are not affected by this update. The amendments are effective for interim and annual periods beginning after December 15, 2011. The adoption of this guidance did not have a material impact on the consolidated financial statements. In January 2013, the FASB issued ASU No. 2013-01, Balance Sheet (Topic 210): Disclosures about Offsetting Assets and Liabilities (“ASU 2013-01). The amendments clarify that the scope of Update 2011-11 applies to derivatives accounted for in accordance with Topic 815, Derivatives and Hedging, including bifurcated embedded derivatives, repurchase agreements and reverse repurchase agreements, and securities borrowing and securities lending transactions that are either offset in accordance with Section 210-20-45 or Section 815-10-45 or subject to an enforceable master netting arrangement or similar agreement. The new standards are effective for annual periods beginning January 1, 2013 and for interim periods within those annual periods. Retrospective application is required. The Company does not anticipate that the adoption of this guidance will have a material impact on the consolidated financial statements. In February 2013, the FASB issued ASU No. 2013-02, Comprehensive Income (Topic 220): Reporting of Amounts Reclassified out of Accumulated Other Comprehensive Income (“ASU 2013-02”). This ASU requires entities to (1) present (either on the face of the statement where net income is presented or in the notes) the effects on the line items of net income of significant amounts reclassified out of accumulated other comprehensive income—but only if the item reclassified is required under GAAP to be reclassified to net income in its entirety in the same reporting period and (2) cross-reference to other disclosures currently required under GAAP for other reclassification items (that are not required under GAAP) to be reclassified directly to net income in their entirety in the same reporting period. This would be the case when a portion of the amount reclassified out of accumulated other comprehensive income is initially transferred to a balance sheet account instead of directly to income or expense. The new standards are effective for reporting periods beginning after December 15, 2012. The adoption of ASU No. 2013-02 did not have a material impact on the Company’s financial statements.

Available-for-sale Securities (Tables)

12 Months Ended

Jun. 30, 2013

Available-for-sale Securities

Securities Available-for-Sale at Amortized Cost and Approximate Fair Values

	June 30, 2013				June 30, 2012
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
	(Dollars in thousands)
U.S. Government agency securities	$	45,289	$	45,333	$	45,824	$	45,808
Agency mortgage-backed securities	78,944		76,264		86,816		87,456
	$	124,233	$	121,597	$	132,640	$	133,264

Gross Unrealized Gains and Unrealized Losses on Available-for-Sale Securities

	June 30, 2013					June 30, 2012
	Gross		Gross			Gross		Gross
	Unrealized		Unrealized			Unrealized		Unrealized
	Gains		Losses			Gains		Losses
	(Dollars in thousands)
U.S. Government agency securities	$	44	$	—		$	5	$	(21	)
Agency mortgage-backed securities	—		(2,680		)	640		—
	$	44	$	(2,680	)	$	645	$	(21	)

Realized Gains and Losses on Available-for-Sale Securities

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Gross realized gains	$	831		$	1,178
Gross realized losses	(39		)	(67		)
Net security gains	$	792		$	1,111

Gross Unrealized Losses and Fair Values Aggregated by Investment Category and Length of Time in Continuous Unrealized Loss Position

	June 30, 2013
	Less than 12 Months					More than 12 Months				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
	(Dollars in thousands)
U.S. Government agency securities	$	—	$	—		$	—	$	—	$	—	$	—
Agency mortgage-backed securities	76,264		(2,680		)	—		—		76,264		(2,680		)
	$	76,264	$	(2,680	)	$	—	$	—	$	76,264	$	(2,680	)

	June 30, 2012
	Less than 12 Months					More than 12 Months				Total
	Fair		Unrealized			Fair		Unrealized		Fair		Unrealized
	Value		Losses			Value		Losses		Value		Losses
	(Dollars in thousands)
U.S. Government agency securities	$	36,585	$	(21	)	$	—	$	—	$	36,585	$	(21	)
Agency mortgage-backed securities	—		—			—		—		—		—
	$	36,585	$	(21	)	$	—	$	—	$	36,585	$	(21	)

Amortized Cost and Fair Values of Available-for-Sale Debt Securities by Contractual Maturity

	Amortized		Fair
	Cost		Value
	(Dollars in thousands)
Due within one year	$	45,288	$	45,332
Due after one year through five years	—		—
Due after five years through ten years	41,845		40,622
Due after ten years	37,100		35,643
	$	124,233	$	121,597

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 7
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27337-111563

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27198-111563

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-Section 50
-Paragraph 3
-URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62586-112803

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27161-111563

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 9
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27357-111563

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-SubTopic 10
-Section 50
-Paragraph 6
-URI http://asc.fasb.org/extlink&oid=6872113&loc=d3e27290-111563

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 115
-Paragraph 19, 20, 21
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 17
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 03-1
-Paragraph 21
-Subparagraph a, b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Loans, Allowance for Loan Losses and Credit Quality (Tables)

12 Months Ended

Jun. 30, 2013

Loans, Allowance for Loan Losses and Credit Quality

Composition of Company Loan Portfolio

	June 30, 2013						June 30, 2012
	Originated		Purchased		Total		Originated		Purchased		Total
	(Dollars in thousands)						(Dollars in thousands)
Residential real estate	$	89,734	$	2,706	$	92,440	$	90,944	$	3,931	$	94,875
Home equity	35,389		—		35,389		42,696		—		42,696
Commercial real estate	100,402		164,046		264,448		100,196		80,539		180,735
Construction	42		—		42		1,187		—		1,187
Commercial business	29,686		34		29,720		19,612		—		19,612
Consumer	13,337		—		13,337		17,149		—		17,149
Total loans	$	268,590	$	166,786	$	435,376	$	271,784	$	84,470	$	356,254

Allowance for Loan Losses by Portfolio Segment

	Year ended June 30, 2013
	Residential			Commercial			Commercial
	Real Estate			Real Estate			& Industrial			Consumer			Purchased			Unallocated		Total
	(Dollars in thousands)
Beginning balance	$	214		$	93		$	292		$	225		$	—		$	—	$	824
Provision	743			158			(26		)	83			123			41		1,122
Recoveries	6			10			7			29			—			—		52
Charge-offs	(369		)	(88		)	(203		)	(148		)	(47		)	—		(855		)
Ending balance	$	594		$	173		$	70		$	189		$	76		$	41	$	1,143

	Year ended June 30, 2012
	Residential			Commercial			Commercial
	Real Estate			Real Estate			& Industrial			Consumer			Purchased		Unallocated		Total
	(Dollars in thousands)
Beginning balance	$	34		$	147		$	238		$	18		$	—	$	—	$	437
Provision	425			(28		)	27			522			—		—		946
Recoveries	3			—			44			37			—		—		84
Charge-offs	(248		)	(26		)	(17		)	(352		)	—		—		(643		)
Ending balance	$	214		$	93		$	292		$	225		$	—	$	—	824

Allowance for Loan Losses by Portfolio Segment and Impairment Methodology

	June 30, 2013
	Residential		Commercial		Commercial
	Real Estate		Real Estate		& Industrial		Consumer		Purchased		Unallocated		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	235	$	85	$	63	$	23	$	65	$	—	$	471
Collectively evaluated	359		88		7		166		—		41		661
ASC 310-30	—		—		—		—		11		—		11
Total	$	594	$	173	$	70	$	189	$	76	$	41	$	1,143

Loans:
Individually evaluated	$	2,626	$	1,558	$	110	$	149	$	1,129	$	—	$	5,572
Collectively evaluated	122,497		98,886		29,576		13,188		—		—		264,147
ASC 310-30	—		—		—		—		165,657		—		165,657
Total	$	125,123	$	100,444	$	29,686	$	13,337	$	166,786	$	—	$	435,376

	June 30, 2012
	Residential		Commercial		Commercial
	Real Estate		Real Estate		& Industrial		Consumer		Purchased		Unallocated		Total
	(Dollars in thousands)
Allowance for loan losses:
Individually evaluated	$	3	$	41	$	284	$	—	$	—	$	—	$	328
Collectively evaluated	211		52		8		225		—		—		496
ASC 310-30	—		—		—		—		—		—		—
Total	$	214	$	93	$	292	$	225	$	—	$	—	$	824

Loans:
Individually evaluated	$	399	$	2,057	$	1,127	$	—	$	1,055	$	—	$	4,638
Collectively evaluated	133,241		99,326		18,485		17,149		—		—		268,201
ASC 310-30	—		—		—		—		83,415		—		83,415
Total	$	133,640	$	101,383	$	19,612	$	17,149	$	84,470	$	—	$	356,254

Impaired Loans

							For the Year Ended
	At June 30, 2013						June 30, 2013
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(Dollars in thousands)						(Dollars in thousands)
Impaired loans without a valuation allowance:
Originated:
Residential real estate	$	1,158	$	1,225	$	—	$	891	$	42
Consumer	88		93		—		59		4
Commercial real estate	434		479		—		1,183		70
Commercial business	47		101		—		144		3
Purchased:
Commercial real estate	928		1,279		—		397		18
Residential real estate	—		—		—		—		—
Total	2,655		3,177		—		2,674		137
Impaired loans with a valuation allowance:
Originated:
Residential real estate	1,468		1,420		235		1,045		75
Consumer	61		61		23		55		4
Commercial real estate	1,124		1,131		85		750		32
Commercial business	63		98		63		189		—
Purchased:
Commercial real estate	201		276		65		40		3
Residential real estate	—		—		—		—		—
Total	2,917		2,986		471		2,079		114
Total impaired loans	$	5,572	$	6,163	$	471	$	4,753	$	251

							For the Year Ended
	At June 30, 2012						June 30, 2012
			Unpaid				Average		Interest
	Recorded		Principal		Related		Recorded		Income
	Investment		Balance		Allowance		Investment		Recognized
	(Dollars in thousands)						(Dollars in thousands)
Impaired loans without a valuation allowance:
Originated:
Residential real estate	$	293	$	483	$	—	$	235	$	21
Consumer	—		—		—		—		—
Commercial real estate	1,482		1,738		—		1,119		99
Commercial business	377		692		—		520		15
Purchased:
Commercial real estate	1,055		1,462		—		211		—
Residential real estate	—		—		—		—		—
Total	3,207		4,375		—		2,085		135
Impaired loans with a valuation allowance:
Originated:
Residential real estate	106		103		3		73		—
Consumer	—		—		—		—		—
Commercial real estate	575		565		41		647		27
Commercial business	750		817		284		732		—
Purchased:
Commercial real estate	—		—		—		—		—
Residential real estate	—		—		—		—		—
Total	1,431		1,485		328		1,452		27
Total impaired loans	$	4,638	$	5,860	$	328	$	3,537	$	162

Past Due and Non-Accrual Loans

	June 30, 2013
					Past Due		Past Due
					90 Days or		90 Days or		Total						Non-
	30-59		60-89		More-Still		More-		Past		Total		Total		Accrual
	Days		Days		Accruing		Nonaccrual		Due		Current		Loans		Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	278	$	408	$	—	$	1,965	$	2,651	$	87,083	$	89,734	$	2,346
Home equity	53		47		—		253		353		35,036		35,389		334
Commercial real estate	91		326		—		98		515		99,887		100,402		473
Construction	—		—		—		—		—		42		42		—
Commercial business	—		—		—		44		44		29,642		29,686		110
Consumer	193		77		—		117		387		12,950		13,337		136
Total originated portfolio	615		858		—		2,477		3,950		264,640		268,590		3,399

Purchased portfolio:
Residential real estate	—		—		—		—		—		2,706		2,706		—
Commercial business	—		—		—		—		—		34		34		—
Commercial real estate	—		2,210		—		1,135		3,345		160,701		164,046		1,457
Total purchased portfolio	—		2,210		—		1,135		3,345		163,441		166,786		1,457
Total loans	$	615	$	3,068	$	—	$	3,612	$	7,295	$	428,081	$	435,376	$	4,856

	June 30, 2012
					Past Due		Past Due
					90 Days or		90 Days or		Total						Non-
	30-59		60-89		More-Still		More-		Past		Total		Total		Accrual
	Days		Days		Accruing		Nonaccrual		Due		Current		Loans		Loans
	(Dollars in thousands)
Originated portfolio:
Residential real estate	$	261	$	183	$	—	$	2,907	$	3,351	$	87,593	$	90,944	$	3,090
Home equity	16		160		—		136		312		42,384		42,696		220
Commercial real estate	—		208		—		417		625		99,571		100,196		417
Construction	—		—		—		—		—		1,187		1,187		—
Commercial business	—		107		—		901		1,008		18,604		19,612		1,008
Consumer	259		137		—		206		602		16,547		17,149		324
Total originated portfolio	536		795		—		4,567		5,898		265,886		271,784		5,059

Purchased portfolio:
Residential real estate	—		—		—		—		—		3,931		3,931		—
Commercial real estate	—		—		—		1,055		1,055		79,484		80,539		1,055
Total purchased portfolio	—		—		—		1,055		1,055		83,415		84,470		1,055
Total loans	$	536	$	795	$	—	$	5,622	$	6,953	$	349,301	$	356,254	$	6,114

Summary of Purchased credit impaired loans (PCI)

	PCI Loans Acquired
	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Contractually required payments receivable	$	62,182		$	35,455
Nonaccretable difference	(12,942		)	(8,765		)
Cash flows expected to be collected	49,240			26,690
Accretable yield	(19,280		)	(8,589		)
Fair value of loans acquired	$	29,960		$	18,101

	PCI Loans: Activity in Accretable Yield
	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Beginning balance	$	7,169		$	—
Accretion	(5,278		)	(1,912		)
Acquisitions	19,280			8,589
Reclassifications from nonaccretable difference	1,257			1,156
Other changes	(5,984		)	(664		)
End balance	$	16,444		$	7,169

	June 30, 2013		June 30, 2012
	(Dollars in thousands)
Unpaid principal balance	$	48,340	$	21,359
Carrying amount	$	30,775	$	13,866

Loans modified in a TDR and the change in the recorded investment subsequent to the modifications

	Year Ended June 30,
	2013					2012
		Recorded		Recorded			Recorded		Recorded
	Number of	Investment		Investment		Number of	Investment		Investment
	Contracts	Pre-Modification		Post-Modification		Contracts	Pre-Modification		Post-Modification
	(Dollars in thousands)
Originated portfolio:
Residential real estate	12	$	1,113	$	1,113	1	$	139	$	139
Home equity	4	158		158		1	20		20
Commercial real estate	1	103		50		1	184		184
Commercial business	—	—		—		—	—		—
Consumer	6	16		16		—	—		—
Total originated portfolio	23	1,390		1,337		3	343		343

Purchased portfolio:
Residential real estate	—	—		—		—	—		—
Commercial real estate	2	207		280		—	—		—
Total purchased portfolio	2	207		280		—	—		—
Total	25	$	1,597	$	1,617	3	$	343	$	343

Schedule of company's post modification balance of TDRs by type of modification

	Year Ended June 30,
	2013			2012
	Number of	Recorded		Number of	Recorded
	Contracts	Investment		Contracts	Investment
	(Dollars in thousands)
Extended maturity	4	$	180	1	$	20
Adjusted interest rate	5	240		—	—
Rate and maturity	6	736		1	184
Principal deferment	2	72		1	139
Protective advance	1	201		—	—
Court ordered concession	4	184		—	—
Other	3	4		—	—
	25	$	1,617	3	$	343

Troubled debt restructurings by accrual status

	June 30,		June 30,
	2013		2012
	(Dollars in thousands)
Nonaccrual	$	1,110	$	139
Accrual	2,632		1,165
Total TDRs	$	3,742	$	1,304

Commercial Loans by Risk Rating

	June 30, 2013
	Originated Portfolio
	Commercial				Commercial
	Real Estate		Construction		and Industrial		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	95,834	$	42	$	29,340	$	161,965
Loans rated 7	3,537		—		82		3,226
Loans rated 8	1,031		—		264		1,595
Loans rated 9	—		—		—		—
Loans rated 10	—		—		—		—
	$	100,402	$	42	$	29,686	$	166,786

	June 30, 2012
	Originated Portfolio
	Commercial				Commercial
	Real Estate		Construction		and Industrial		Purchased Portfolio
	(Dollars in thousands)
Loans rated 1- 6	$	96,963	$	1,187	$	18,223	$	83,415
Loans rated 7	1,886		—		250		1,055
Loans rated 8	1,347		—		1,139		—
Loans rated 9	—		—		—		—
Loans rated 10	—		—		—		—
	$	100,196	$	1,187	$	19,612	$	84,470

Premises and Equipment (Tables)

12 Months Ended

Jun. 30, 2013

Premises and Equipment

Schedule of premises and equipment

	June 30, 2013		June 30, 2012		Estimated Useful Life
	(Dollars in thousands)				(In years)
Land	$	940	$	1,210	n/a
Buildings	2,120		2,120		39
Assets recorded under capital lease	1,850		1,850		Term of lease
Leasehold and building improvements	2,310		940		5-39 (or term of lease, if shorter)
Furniture, fixtures and equipment	6,295		4,909		3-7
	13,515		11,029
Less accumulated depreciation	3,440		1,824
Net premises and equipment	$	10,075	$	9,205

Intangible Assets (Tables)

12 Months Ended

Jun. 30, 2013

Intangible Assets

Schedule of changes in the carrying amount of intangible assets

	Identifiable Intangibles
	Core						Total
	Deposit			Other			Identifiable
	Intangible			Intangibles			Intangibles

Balance, June 30, 2011	$	5,685		$	7,448		$	13,133
Amortization	(1,198		)	(68		)	(1,266		)
Assets sold or disposed	—			(7,380		)	(7,380		)
Balance, June 30, 2012		4,487			—			4,487
Amortization	(943		)	—			(943		)
Assets sold or disposed	—			—			—
Balance, June 30, 2013	$	3,544		$	—		$	3,544

Schedule of components of identifiable intangible assets

	2013			2012
	(Dollars in thousands)
Core Deposit Intangible:
Gross carrying amount	$	6,348		$	6,348
Accumulated amortization	(2,804		)	(1,861		)
	$	3,544		$	4,487

Schedule of estimated annual amortization expense associated with intangible assets

Estimated annual amortization expense associated with intangible assets follows for the fiscal years ending June 30 (dollars in thousands):

2014	$	746
2015	589
2016	477
2017	432
2018	433
Thereafter	867
	$	3,544

Deposits (Tables)

12 Months Ended

Jun. 30, 2013

Deposits

Schedule of composition of deposits

	2013		2012
	(Dollars in thousands)
Demand	$	46,425	$	45,323
NOW	57,334		57,477
Money market	84,416		45,024
Regular savings	33,636		32,727
Time certificates of less than $100	99,373		100,292
Other time certificates	163,439		141,345
	$	484,623	$	422,188

Schedule of maturities of time certificates

The scheduled maturities of time certificates at June 30, 2013 by fiscal year follow (dollars in thousands):

2014	$	103,557
2015	59,172
2016	48,218
2017	15,139
2018	32,586
Thereafter	4,140
	$	262,812

Borrowings (Tables)

12 Months Ended

Jun. 30, 2013

Borrowings

Summary of fixed-rate long term advances from the Federal Home Loan Bank of Boston

Maturity
By Fiscal	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
Year	2013		2012		2013		2012		2013		2012
	(Dollars in thousands)
2013	$	—	$	15,000	$	—	$	15,194	—	%	1.46	%
2014	—		—		—		—		—		—
2015	12,500		12,500		12,626		12,728		2.08		2.30
2016	—		—		—		—		—		—
2017	10,000		10,000		10,296		10,382		3.28		3.48
2018	5,000		5,000		5,118		5,146		3.68		3.84
	$	27,500	$	42,500	$	28,040	$	43,450	2.81		2.47

Summary of wholesale repurchase agreements

Maturity
By Fiscal	Unpaid Principal Balance				Carrying Amount				Weighted Average Cost
Year	2013		2012		2013		2012		2013		2012
	(Dollars in thousands)
2013	$	—	$	40,000	$	—	$	40,302	—	%	1.22	%
2014	15,000		15,000		15,035		15,358		0.80		1.64
2015	—		—		—		—		—		—
2016	10,000		10,000		10,362		10,523		2.74		2.74
	$	25,000	$	65,000	$	25,397	$	66,183	1.59		1.56

Schedule of future minimum lease payments over the remaining term of the lease and the outstanding capital lease obligation

The future minimum lease payments over the remaining term of the lease and the outstanding capital lease obligation at June 30, 2013 are as follows for years ending June 30 (dollars in thousands):

2014	$	264
2015	264
2016	303
2017	306
2018	306
2019 and thereafter	637
	2,080
Imputed interest	(341		)
Capital lease obligation	$	1,739

- Definition

Tabular disclosure of advances by federal home loan bank by branch.

+ References + Details

Junior Subordinated Debentures Issued to Affiliated Trusts (Tables)

12 Months Ended

Jun. 30, 2013

Junior Subordinated Debentures Issued to Affiliated Trusts

Summary of Junior Subordinated Debentures issued by the Company

	Maturity	Unpaid Principal Balance				Carrying Amount
	Date	2013		2012		2013		2012
		(Dollars in thousands)
NBN Capital Trust II	March 30, 2034	$	3,093	$	3,093	$	1,775	$	1,747
NBN Capital Trust III	March 30, 2034	3,093		3,093		1,775		1,747
NBN Capital Trust IV	February 23, 2035	10,310		10,310		4,718		4,612
		$	16,496	$	16,496	$	8,268	$	8,106

Capital and Regulatory Matters (Tables)

12 Months Ended

Jun. 30, 2013

Capital and Regulatory Matters

Schedule of Company's and Bank's regulatory capital ratios

									Minimum
									To Be Well
					Minimum				Capitalized Under
					Capital				Prompt Correction
	Actual				Requirements				Action Provisions
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	(Dollars in thousands)
June 30, 2013:
Total capital to risk weighted assets:
Company	$	122,291	27.54	%	$	35,520	>8.0	%	$	N/A	N/A
Bank	99,527		22.30	%	35,709		>8.0	%	44,637		>10.0	%

Tier 1 capital to risk weighted assets:
Company	121,148		27.29	%	17,760		>4.0	%	N/A		N/A
Bank	95,485		21.39	%	17,855		>4.0	%	26,782		>6.0	%

Tier 1 capital to average assets:
Company	121,148		17.78	%	27,255		>4.0	%	N/A		N/A
Bank	95,485		14.08	%	27,121		>4.0	%	33,902		>5.0	%

June 30, 2012:
Total capital to risk weighted assets:
Company	$	124,452	33.34	%	$	29,863	>8.0	%	$	N/A	N/A
Bank	75,081		20.14	%	29,824		>8.0	%	37,280		>10.0	%

Tier 1 capital to risk weighted assets:
Company	123,628		33.12	%	14,931		>4.0	%	N/A		N/A
Bank	70,414		18.89	%	14,910		>4.0	%	22,365		>6.0	%

Tier 1 capital to average assets:
Company	123,628		19.91	%	24,837		>4.0	%	N/A		N/A
Bank	70,414		11.43	%	24,642		>4.0	%	30,802		>5.0	%

Earnings Per Common Share (Tables)

12 Months Ended

Jun. 30, 2013

Earnings Per Common Share

Number of Shares Outstanding for Basic and Diluted EPS

	Year ended June 30,
	2013			2012
	(Dollars in thousands, except share and per share data)
Net income from continuing operations	$	4,420		$	1,016
Preferred stock dividends and accretion	(355		)	(392		)
Net income from continuing operations available to common shareholders	$	4,065		$	624

Weighted average shares used in calculation of basic earnings per share	10,409,588			4,277,777
Incremental shares from assumed exercise of dilutive securities	—			13,575
Weighted average shares used in calculation of diluted earnings per share	10,409,588			4,291,352

Earnings per common share:
Income from continuing operations	$	0.39		$	0.15
Income from discontinued operations	—			0.26
Earnings per common share	$	0.39		$	0.41

Diluted earnings per common share:
Income from continuing operations	$	0.39		$	0.15
Income from discontinued operations	—			0.26
Diluted earnings per common share	$	0.39		$	0.41

Average Anti-dilutive Options and Warrants

	Year ended June 30,
	2013	2012
Stock options	963,549	796,049
Warrants	31,365	—
	994,914	796,049

Income Taxes (Tables)

12 Months Ended

Jun. 30, 2013

Income Taxes

Schedule of current and deferred components of income tax expense from continuing operations

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Current provision (benefit)
Federal	$	2,179		$	(1,033	)
State	194			71
Total current provision (benefit)	2,373			(962		)
Deferred (benefit) provision
Federal	(428		)	1,143
Total deferred (benefit) provision	(428		)	1,143
Total tax provision	$	1,945		$	181

Schedule of reconciliation between the statutory federal income tax rate and the effective tax rate on income from continuing operations

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Expected income tax expense at federal tax rate	$	2,164		$	407
State tax, net of federal tax benefit	128			47
Non-taxable BOLI income	(244		)	(170		)
Low-income housing tax credit	(118		)	(118		)
Other	15			15
Total tax provision	$	1,945		$	181

Schedule of significant portions of the deferred tax assets and deferred tax liabilities

	2013			2012
	(Dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	378		$	280
Loan basis differential	931			629
Time deposit basis differential	252			589
Derivative basis differential	89			146
Capital lease	127			120
Deferred compensation	138			213
Stock-based compensation	584			418
Unrealized loss on derivatives	89			130
Unrealized loss on available for sale securities	896			—
Interest on nonperforming loans	266			212
Limited partnerships	123			97
Other	232			205
Total deferred tax asset	4,105			3,039
Deferred tax liabilities
Goodwill and other intangible assets	(1,205		)	(1,526		)
Prepaid expenses	(56		)	(268		)
Premises and equipment	(761		)	(801		)
Borrowings basis differential	(2,479		)	(2,127		)
Unrealized gain on available for sale securities	—			(212		)
Other	(63		)	(59		)
Total deferred tax liability	(4,564		)	(4,993		)
Net deferred tax liability	$	(459	)	$	(1,954	)

Stock-Based Compensation (Tables)

12 Months Ended

Jun. 30, 2013

Stock-Based Compensation

Stock Option Activity

			Weighted
			Average
	Shares		Exercise Price
Outstanding at beginning of year	796,049		$	13.98
Granted	395,919		9.38
Exercised	—		—
Forfeited	(18,301	)	13.40
Outstanding at end of year	1,173,667		12.44
Exercisable	126,714		14.08

			Weighted
			Average Grant
	Shares		Date Fair Value
Exercisable, beginning of year	54,175		$	3.86
Vested	75,239		3.86
Exercised	—		—
Forfeited or expired	(2,700	)	3.85
Exercisable, end of year	126,714		3.86

Information about Stock Options Outstanding

Options Outstanding							Options Exercisable
(Dollars in thousands, except per share data)
Weighted Average			Weighted Average		Aggregate		Weighted Average			Weighted Average		Aggregate
Exercise Price		Number	Remaining Life		Intrinsic Value		Exercise Price		Number	Remaining Life		Intrinsic Value
$	9.38	395,919		9.58 years	$	115	$	9.38	—		9.58 years	$	—
12.63		32,500		8.58	—		12.63		—		8.58	—
13.93		583,238		7.50	—		13.93		94,312		7.50	—
14.52		162,010		7.50	—		14.52		32,402		7.50	—
12.44		1,173,667		8.23	$	115	12.44		126,714		7.50	$	—

Summary of restricted stock activity

			Weighted
			Average Grant Date
	Shares		Fair Value
Unvested at beginning of period	13,026		$	13.93
Granted	63,202		9.33
Vested	(5,210	)	13.93
Forfeited	—		—
Unvested at end of period	71,018		9.84

Estimated Amount and Timing of Future Pre-tax Stock-based Compensation Expense

	Year Ending June 30,
	2014		2015		2016		2017		2018		Total
	(Dollars in thousands)
Stock options	$	523	$	549	$	424	$	223	$	83	$	1,802
Restricted stock	118		118		118		118		69		541
	$	641	$	667	$	542	$	341	$	152	$	2,343

Black-Scholes option-pricing model

Stock-Based Compensation

Schedule of a option-pricing model weighted-average assumptions

	Year Ended June 30,
	2013	2012
Assumptions:
Dividend yield	3.86%	2.81%
Expected life	6.5 years	6.0 years
Expected volatility	30.47%	33.86%
Risk-free interest rate	1.26%	0.98%
Weighted average fair value per option	$1.79	$4.39

Hull-White option pricing model

Stock-Based Compensation

Schedule of a option-pricing model weighted-average assumptions

Assumptions:
Dividend yield		3.72%
Expected life		7.8 years
Expected volatility		28.45% - 32.84%
Risk-free interest rate		0.07% - 1.54%
Incremental weighted average fair value per option		$0.52

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks (Tables)

12 Months Ended

Jun. 30, 2013

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks

Financial Instruments with Contract Amounts Represent Credit Risk

	2013		2012
	(Dollars in thousands)
Commitments to originate loans:
Residential real estate mortgages	$	12,445	$	10,279
Construction loans	—		106
Consumer	—		25
Commercial real estate mortgages	—		361
Commercial business loans	904		1,145
	$	13,349	$	11,916

Unused lines of credit	$	30,809	$	36,276
Standby letters of credit	420		602
Unadvanced portions of construction loans	—		162

Schedule of approximate future minimum lease payments over the remaining terms of the Company's leases

Approximate future minimum lease payments over the remaining terms of the Company’s leases at June 30, 2013 are as follows for fiscal years ending June 30 (dollars in thousands):

2014	$	1,120
2015	1,168
2016	1,080
2017	939
2018	955
2019 and thereafter	4,279
Total	$	9,541

Condensed Parent Information (Tables)

12 Months Ended

Jun. 30, 2013

Condensed Parent Information

Condensed Financial Information Balance Sheet

	June 30, 2013		June 30, 2012
	(Dollars in thousands)
Balance Sheets
Assets:
Cash	$	26,366	$	54,996
Investment in subsidiary	96,294		72,849
Investment in common securities of affiliated trusts	496		496
Other assets	1,445		2,047
Total assets	$	124,601	$	130,388

Liabilities and Stockholders’ Equity:
Junior subordinated debentures issued to affiliated trusts	$	8,268	$	8,106
Other liabilities	2,531		3,143
Total liabilities	10,799		11,249
Stockholders’ equity	113,802		119,139
Total liabilities and stockholders’ equity	$	124,601	$	130,388

Condensed Financial Information Statements of Income

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Statements of Income
Income:
Dividends from banking subsidiary	$	—		$	1,500
Other income	14			26
Total income	14			1,526

Expenses:
Interest expense	769			751
General and administrative expenses	1,037			993
Total expenses	1,806			1,744
Loss before income tax benefit and equity in undistributed net income of subsidiary	(1,792		)	(218		)
Income tax benefit	(615		)	(589		)
(Loss) income before equity in undistributed net income of subsidiary	(1,177		)	371
Equity in undistributed net income of subsidiary	5,597			1,792
Net income	$	4,420		$	2,163
Net income available to common stockholders	$	4,065		$	1,771

Condensed Financial Information Statements of Cash Flow

	Year Ended June 30,
	2013			2012
	(Dollars in thousands)
Statements of Cash Flow
Operating activities:
Net income	$	4,420		$	2,163
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of fair value adjustment for borrowings	162			149
Stock-based compensation	563			445
Undistributed earnings of subsidiary	(5,597		)	(1,792		)
Increase in other assets and liabilities	70			(700		)
Net cash (used in) provided by operating activities	(382		)	265

Investing activities:
Increase in investment of bank subsidiary	(20,000		)	—
Net cash used in investing activities	(20,000		)	—

Financing activities:
Proceeds from issuance of common stock	(59		)	52,667
Redemption of preferred stock and warrants	(4,326		)	—
Dividends paid to stockholders	(3,863		)	(1,474		)
Net cash (used in) provided by financing activities	(8,248		)	51,193

Net (decrease) increase in cash	(28,630		)	51,458
Cash, beginning of year	54,996			3,538
Cash, end of year	$	26,366		$	54,996

Other Comprehensive Income (Tables)

12 Months Ended

Jun. 30, 2013

Other Comprehensive Income

Schedule of components of other comprehensive (loss) income

	Year Ended June 30,
	2013									2012
	Pre-tax			Tax Expense			After-tax			Pre-tax			Tax Expense			After-tax
	Amount			(Benefit)			Amount			Amount			(Benefit)			Amount
	(Dollars in thousands)
Change in net unrealized gain or loss on available-for-sale securities	$	(2,469	)	$	(840	)	$	(1,629	)	$	1,896		$	645		$	1,251
Reclassification adjustment for net gains included in net income	(792		)	(269		)	(523		)	(1,111		)	(378		)	(733		)
Total available-for-sale securities	(3,261		)	(1,109		)	(2,152		)	785			267			518
Change in accumulated loss on effective cash flow hedges	192			66			126			(122		)	(41		)	(81		)
Reclassification adjustment for net gains included in net income	(70		)	(24		)	(46		)	(80		)	(27		)	(53		)
Total derivatives and hedging activities	122			42			80			(202		)	(68		)	(134		)
Total other comprehensive (loss) income	$	(3,139	)	$	(1,067	)	$	(2,072	)	$	583		$	199		$	384

Schedule of components of accumulated other comprehensive (loss) income

	June 30, 2013			June 30, 2012
	(Dollars in thousands)
Unrealized (loss) gain on available-for-sale securities	$	(2,636	)	$	624
Tax effect	896			(212		)
Net-of-tax amount	(1,740		)	412
Unrealized loss on cash flow hedges	(263		)	(384		)
Tax effect	89			130
Net-of-tax amount	(174		)	(254		)
Accumulated other comprehensive (loss) income	$	(1,914	)	$	158

Fair Value Measurements (Tables)

12 Months Ended

Jun. 30, 2013

Fair Value Measurements

Assets and Liabilities Measured at Fair Value on Recurring Basis

	June 30, 2013
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale:
U.S. Government agency securities	$	45,333	$	—	$	45,333	$	—
Agency mortgage-backed securities	76,264		—		76,264		—
Other assets — interest rate caps	—		—		—		—
Liabilities
Other liabilities - interest rate swap	$	389	$	—	$	389	$	—

	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Assets
Securities available-for-sale:
U.S. Government agency securities	$	45,808	$	—	$	45,808	$	—
Agency mortgage-backed securities	87,456		—		87,456		—
Other assets —interest rate caps	1		—		1		—
Liabilities
Other liabilities - interest rate swap	$	580	$	—	$	580	$	—

Assets Measured at Fair Value on Nonrecurring Basis

	June 30, 2013
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Collateral dependent impaired loans	$	894	$	—	$	—	$	894
Real estate owned and other repossessed collateral	2,134		—		—		2,134

	June 30, 2012
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Collateral dependent impaired loans	$	1,103	$	—	$	—	$	1,103
Real estate owned and other repossessed collateral	834		—		—		834

Estimated Fair Value of Company's Financial Instruments

	Carrying		Fair Value Measurements at June 30, 2013
	Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	65,934	$	65,934	$	65,934	$	—	$	—
Available-for-sale securities	121,597		121,597		—		121,597		—
Regulatory stock	5,721		5,721		—		5,721		—
Loans held for sale	8,594		8,602		—		8,602		—
Loans, net	434,233		444,988		—		—		444,988
Accrued interest receivable	1,396		1,396		—		1,396		—
Interest rate caps	—		—		—		—		—

Financial liabilities:
Deposits	484,623		449,857		—		449,857		—
FHLB advances	28,040		29,404		—		29,404		—
Wholesale repurchase agreements	25,397		26,092		—		26,092		—
Short-term borrowings	625		625		—		625		—
Capital lease obligation	1,739		1,926		—		1,926		—
Subordinated debentures	8,268		7,594		—		—		7,594
Interest rate swaps	389		389		—		389		—

	Carrying		Fair Value Measurements at June 30, 2012
	Amount		Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Financial assets:
Cash and cash equivalents	$	128,274	$	128,274	$	128,274	$	—	$	—
Available-for-sale securities	133,264		133,264		—		133,264		—
Regulatory stock	5,473		5,473		—		5,473		—
Loans held for sale	9,882		9,896		—		9,896		—
Loans, net	355,430		374,062		—		—		374,062
Accrued interest receivable	1,840		1,840		—		1,840		—
Interest rate caps	1		1		—		1		—

Financial liabilities:
Deposits	422,188		425,782		—		425,782		—
FHLB advances	43,450		45,747		—		45,747		—
Wholesale repurchase agreements	66,183		67,314		—		67,314		—
Short-term borrowings	1,209		1,209		—		1,209		—
Capital lease obligation	1,911		2,202		—		2,202		—
Subordinated debentures	8,106		8,597		—		—		8,597
Interest rate swaps	580		580		—		580		—

- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

+ References

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-Name Accounting Standards Codification
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-SubTopic 10
-Section 50
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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Reference 9: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 10: http://www.xbrl.org/2003/role/presentationRef
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-Name Statement of Financial Accounting Standard (FAS)
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Reference 11: http://www.xbrl.org/2003/role/presentationRef
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Reference 12: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Derivatives (Tables)

12 Months Ended

Jun. 30, 2013

Derivatives

Schedule of amounts recognized in income related to both hedge ineffectiveness and amounts excluded from effectiveness testing

	Year ended June 30,
	2013			2012
	(Dollars in thousands)
Interest income (expense):
Interest rate caps	$	(30	)	$	(20	)
Interest rate swap	100			100
Total	$	70		$	80

Outstanding Interest Rate Caps and Swap Agreements Used to Hedge Variable Rate Debt

	June 30, 2013						June 30, 2012
	Interest			Interest			Interest			Interest
	Rate Caps			Rate Swap			Rate Caps			Rate Swap
	(Dollars in thousands)
Notional amount	$	6,000		$	10,000		$	6,000		$	10,000
Weighted average pay rate				4.69		%				4.69		%
Weighted average receive rate				2.25		%				2.36		%
Strike rate based on three month LIBOR	2.51		%				2.51		%
Weighted average maturity in years	1.25			1.67			2.25			2.67
Unrealized loss	$	40		$	223		$	69		$	315

Fair Values and Location of Derivatives Designated as Hedging Instruments

Liability Derivatives	Balance Sheet Location	Fair Value
Interest rate swap	Other liabilities	$	389

Liability Derivatives	Balance Sheet Location	Fair Value
Interest rate swap	Other liabilities	$	580

- Definition

Tabular disclosure of pertinent information about a derivative or group of derivatives on a disaggregated basis, such as for individual instruments, or small groups of similar instruments. May include a combination of the type of instrument, risks being hedged, notional amount, hedge designation, related hedged item, inception date, maturity date, or other relevant item.

+ References

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-Subparagraph (SX 210.4-08.(n)(2))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 11: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 815
-SubTopic 10
-Section 50
-Paragraph 2
-URI http://asc.fasb.org/extlink&oid=7476318&loc=d3e41620-113959

+ Details

Discontinued Operations (Tables)

12 Months Ended

Jun. 30, 2013

Discontinued Operations

Summary of Sale Transactions

The following is a summary of the sale transactions (dollars in thousands).

Sale proceeds	$	9,889
Less:
Customer lists and other intangible assets, net	7,380
Fixed assets, net of accumulated depreciation	164
Severance and other direct expenses	779
Pre-tax gain recognized	$	1,566

Summary of operations of NBIG

	Year Ended June 30,
	2013		2012
	(Dollars in thousands)
Interest expense	$	—	$	14

Noninterest income:
Insurance commissions	—		965
Other noninterest income (expense)	—		(4		)
Total noninterest income	—		961

Noninterest expense:
Salaries and employee benefits	—		494
Occupancy and equipment expense	—		88
Professional fees	—		16
Data processing fees	—		38
Intangible assets amortization	—		68
Other	—		57
Total noninterest expense	—		761

Income from discontinued operations	—		186
Gain on sale of assets	—		1,566
Income from discontinued operations before income tax expense	—		1,752
Income tax expense	—		605
Net income from discontinued operations	$	—	$	1,147

- Definition

Tabular disclosure of disposal groups, which may include the gain (loss) recognized in the income statement and the income statement caption that includes that gain (loss), amounts of revenues and pretax profit or loss reported in discontinued operations, the classification and carrying value of the assets and liabilities comprising the disposal group, and the segment in which the disposal group was reported. Also may include the amount of adjustments to amounts previously reported in discontinued operations such as resolution of contingencies arising from the disposal transaction or the operations of the component prior to disposal.

+ References + Details

Summary of Significant Accounting Policies (Details) $ in Thousands	12 Months Ended
	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Sep. 30, 2011 item	Aug. 31, 2011 item
Summary of Significant Accounting Policies
Investments in NBN Capital Trust affiliates	$ 496
Cash or deposits reserve balances	$ 5,300	$ 3,800
NGIB
Summary of Significant Accounting Policies
Number of separate transactions in which substantially all assets sold \| item			2	2
Residential and consumer loans
Summary of Significant Accounting Policies
Maximum charge-off period	180 days

Available-for-sale Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Schedule of Available-for-sale Securities
Total securities available for sale, Amortized Cost	$ 124,233	$ 132,640
Total securities available for sale, Fair Value	121,597	133,264
U.S. Government agency securities
Schedule of Available-for-sale Securities
Total securities available for sale, Amortized Cost	45,289	45,824
Total securities available for sale, Fair Value	45,333	45,808
Agency mortgage-backed securities
Schedule of Available-for-sale Securities
Total securities available for sale, Amortized Cost	78,944	86,816
Total securities available for sale, Fair Value	$ 76,264	$ 87,456

- Definition

This element represents the portion of the balance sheet assertion valued at fair value by the entity whether such amount is presented as a separate caption or as a parenthetical disclosure. Additionally, this element may be used in connection with the fair value disclosures required in the footnote disclosures to the financial statements. The element may be used in both the balance sheet and disclosure in the same submission. This item represents Available-for-sale Securities which consist of all investments in certain debt and equity securities neither classified as trading or held-to-maturity securities. A debt security represents a creditor relationship with an enterprise. Debt securities include, among other items, US Treasury securities, US government securities, municipal securities, corporate bonds, convertible debt, commercial paper, and all securitized debt instruments. An equity security represents an ownership interest in an enterprise or the right to acquire or dispose of an ownership interest in an enterprise at fixed or determinable prices. Equity securities include, among other things, common stock, certain preferred stock, warrant rights, call options, and put options, but do not include convertible debt. An entity may opt to provide the reader with additional narrative text to better understand the nature of investments in debt and equity securities which are categorized as Available-for-sale.

+ References + Details

Available-for-sale Securities (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Available-for-sale Securities
Securities of any single issuer held whose book value exceeds specified percentage of stockholder's equity other than U. S. Government and federal agencies securities (in shares)	0
Specified percentage by which book value exceeds stockholder's equity of securities of any single issuer other than U. S. Government and federal agencies securities	10.00%
Schedule of Available-for-sale Securities
Gross Unrealized Gains	$ 44	$ 645
Gross Unrealized Losses	(2,680)	(21)
U.S. Government agency securities
Schedule of Available-for-sale Securities
Gross Unrealized Gains	44	5
Gross Unrealized Losses		(21)
Agency mortgage-backed securities
Schedule of Available-for-sale Securities
Gross Unrealized Gains		$ 640
Gross Unrealized Losses	$ (2,680)

Available-for-sale Securities (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Available-for-sale Securities
Gross realized gains	$ 831	$ 1,178
Gross realized losses	(39)	(67)
Net security gains	$ 792	$ 1,111

Available-for-sale Securities (Details 4) $ in Millions	Jun. 30, 2013 USD ($)
Available-for-sale Securities
Investment securities at fair value pledged as collateral for wholesale repurchase agreements and FHLB advances	$ 53.5

Available-for-sale Securities (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Schedule of Available-for-sale Securities
Fair Value, Less than 12 Months	$ 76,264	$ 36,585
Unrealized Losses, Less than 12 Months	(2,680)	(21)
Fair Value, Total Fair Value	76,264	36,585
Unrealized Losses, Total Unrealized Losses	(2,680)	(21)
Other-than-temporary impairment losses on securities	0	0
U.S. Government agency securities
Schedule of Available-for-sale Securities
Fair Value, Less than 12 Months		36,585
Unrealized Losses, Less than 12 Months		(21)
Fair Value, Total Fair Value		36,585
Unrealized Losses, Total Unrealized Losses		$ (21)
Agency mortgage-backed securities
Schedule of Available-for-sale Securities
Fair Value, Less than 12 Months	76,264
Unrealized Losses, Less than 12 Months	(2,680)
Fair Value, Total Fair Value	76,264
Unrealized Losses, Total Unrealized Losses	$ (2,680)

Available-for-sale Securities (Details 6) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Available-for-sale Securities
Due within one year, Amortized Cost	$ 45,288
Due after five years through ten years, Amortized Cost	41,845
Due after ten years, Amortized Cost	37,100
Available-for-sale securities, Amortized Cost	124,233	$ 132,640
Due within one year, Fair Value	45,332
Due after five years through ten years, Fair Value	40,622
Due after ten years, Fair Value	35,643
Available-for-sale securities, Fair Value	$ 121,597	$ 133,264

- Definition

+ References + Details

Loans, Allowance for Loan Losses and Credit Quality (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable
Loans	$ 435,376	$ 356,254
Loans pledged as collateral with the FHLB for borrowings	56,700	67,900
Loans serviced for others	97,100	33,800
Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	92,440	94,875
Home equity
Accounts, Notes, Loans and Financing Receivable
Loans	35,389	42,696
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	264,448	180,735
Construction
Accounts, Notes, Loans and Financing Receivable
Loans	42	1,187
Commercial business
Accounts, Notes, Loans and Financing Receivable
Loans	29,720	19,612
Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	13,337	17,149
Originated
Accounts, Notes, Loans and Financing Receivable
Loans	268,590	271,784
Originated \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	89,734	90,944
Originated \| Home equity
Accounts, Notes, Loans and Financing Receivable
Loans	35,389	42,696
Originated \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	100,402	100,196
Originated \| Construction
Accounts, Notes, Loans and Financing Receivable
Loans	42	1,187
Originated \| Commercial business
Accounts, Notes, Loans and Financing Receivable
Loans	29,686	19,612
Originated \| Consumer
Accounts, Notes, Loans and Financing Receivable
Loans	13,337	17,149
Purchased
Accounts, Notes, Loans and Financing Receivable
Loans	166,786	84,470
Purchased \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Loans	2,706	3,931
Purchased \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Loans	164,046	$ 80,539
Purchased \| Commercial business
Accounts, Notes, Loans and Financing Receivable
Loans	$ 34

Loans, Allowance for Loan Losses and Credit Quality (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Financing Receivable, Allowance for Credit Losses
Beginning balance	$ 824	$ 437
Provision	1,122	946
Recoveries	52	84
Charge-offs	(855)	(643)
Ending balance	1,143	824
Purchased
Financing Receivable, Allowance for Credit Losses
Provision	123
Charge-offs	(47)
Ending balance	76
Residential Real Estate
Financing Receivable, Allowance for Credit Losses
Beginning balance	214	34
Provision	743	425
Recoveries	6	3
Charge-offs	(369)	(248)
Ending balance	594	214
Commercial Real Estate
Financing Receivable, Allowance for Credit Losses
Beginning balance	93	147
Provision	158	(28)
Recoveries	10
Charge-offs	(88)	(26)
Ending balance	173	93
Commercial & Industrial
Financing Receivable, Allowance for Credit Losses
Beginning balance	292	238
Provision	(26)	27
Recoveries	7	44
Charge-offs	(203)	(17)
Ending balance	70	292
Consumer
Financing Receivable, Allowance for Credit Losses
Beginning balance	225	18
Provision	83	522
Recoveries	29	37
Charge-offs	(148)	(352)
Ending balance	189	$ 225
Unallocated
Financing Receivable, Allowance for Credit Losses
Provision	41
Ending balance	$ 41

Loans, Allowance for Loan Losses and Credit Quality (Details 3) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Allowance for loan losses:
Individually evaluated	$ 471	$ 328
Collectively evaluated	661	496
ASC 310-30	11
Total	1,143	824	$ 437
Loans:
Individually evaluated	5,572	4,638
Collectively evaluated	264,147	268,201
ASC 310-30	165,657	83,415
Total Loans	435,376	356,254
Purchased
Allowance for loan losses:
Individually evaluated	65
ASC 310-30	11
Total	76
Loans:
Individually evaluated	1,129	1,055
ASC 310-30	165,657	83,415
Total Loans	166,786	84,470
Residential Real Estate
Allowance for loan losses:
Individually evaluated	235	3
Collectively evaluated	359	211
Total	594	214	34
Loans:
Individually evaluated	2,626	399
Collectively evaluated	122,497	133,241
Total Loans	125,123	133,640
Commercial Real Estate
Allowance for loan losses:
Individually evaluated	85	41
Collectively evaluated	88	52
Total	173	93	147
Loans:
Individually evaluated	1,558	2,057
Collectively evaluated	98,886	99,326
Total Loans	100,444	101,383
Commercial & Industrial
Allowance for loan losses:
Individually evaluated	63	284
Collectively evaluated	7	8
Total	70	292	238
Loans:
Individually evaluated	110	1,127
Collectively evaluated	29,576	18,485
Total Loans	29,686	19,612
Consumer
Allowance for loan losses:
Individually evaluated	23
Collectively evaluated	166	225
Total	189	225	$ 18
Loans:
Individually evaluated	149
Collectively evaluated	13,188	17,149
Total Loans	13,337	$ 17,149
Unallocated
Allowance for loan losses:
Collectively evaluated	41
Total	$ 41

Loans, Allowance for Loan Losses and Credit Quality (Details 4) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Financing Receivable, Impaired
Recorded Investment, without a valuation allowance	$ 2,655	$ 3,207
Unpaid Principal Balance, without a valuation allowance	3,177	4,375
Average Recorded Investment, without a valuation allowance	2,674	2,085
Interest Income Recognized, without a valuation allowance	137	135
Recorded Investment, with a valuation allowance	2,917	1,431
Unpaid Principal Balance, with a valuation allowance	2,986	1,485
Related Allowance	471	328
Average Recorded Investment, with a valuation allowance	2,079	1,452
Interest Income Recognized, with a valuation allowance	114	27
Recorded Investment	5,572	4,638
Unpaid Principal Balance	6,163	5,860
Average Recorded Investment	4,753	3,537
Interest Income Recognized	251	162
Originated \| Residential Real Estate
Financing Receivable, Impaired
Recorded Investment, without a valuation allowance	1,158	293
Unpaid Principal Balance, without a valuation allowance	1,225	483
Average Recorded Investment, without a valuation allowance	891	235
Interest Income Recognized, without a valuation allowance	42	21
Recorded Investment, with a valuation allowance	1,468	106
Unpaid Principal Balance, with a valuation allowance	1,420	103
Related Allowance	235	3
Average Recorded Investment, with a valuation allowance	1,045	73
Interest Income Recognized, with a valuation allowance	75
Originated \| Consumer
Financing Receivable, Impaired
Recorded Investment, without a valuation allowance	88
Unpaid Principal Balance, without a valuation allowance	93
Average Recorded Investment, without a valuation allowance	59
Interest Income Recognized, without a valuation allowance	4
Recorded Investment, with a valuation allowance	61
Unpaid Principal Balance, with a valuation allowance	61
Related Allowance	23
Average Recorded Investment, with a valuation allowance	55
Interest Income Recognized, with a valuation allowance	4
Originated \| Commercial Real Estate
Financing Receivable, Impaired
Recorded Investment, without a valuation allowance	434	1,482
Unpaid Principal Balance, without a valuation allowance	479	1,738
Average Recorded Investment, without a valuation allowance	1,183	1,119
Interest Income Recognized, without a valuation allowance	70	99
Recorded Investment, with a valuation allowance	1,124	575
Unpaid Principal Balance, with a valuation allowance	1,131	565
Related Allowance	85	41
Average Recorded Investment, with a valuation allowance	750	647
Interest Income Recognized, with a valuation allowance	32	27
Originated \| Commercial business
Financing Receivable, Impaired
Recorded Investment, without a valuation allowance	47	377
Unpaid Principal Balance, without a valuation allowance	101	692
Average Recorded Investment, without a valuation allowance	144	520
Interest Income Recognized, without a valuation allowance	3	15
Recorded Investment, with a valuation allowance	63	750
Unpaid Principal Balance, with a valuation allowance	98	817
Related Allowance	63	284
Average Recorded Investment, with a valuation allowance	189	732
Purchased \| Commercial Real Estate
Financing Receivable, Impaired
Recorded Investment, without a valuation allowance	928	1,055
Unpaid Principal Balance, without a valuation allowance	1,279	1,462
Average Recorded Investment, without a valuation allowance	397	$ 211
Interest Income Recognized, without a valuation allowance	18
Recorded Investment, with a valuation allowance	201
Unpaid Principal Balance, with a valuation allowance	276
Related Allowance	65
Average Recorded Investment, with a valuation allowance	40
Interest Income Recognized, with a valuation allowance	$ 3

Loans, Allowance for Loan Losses and Credit Quality (Details 5) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Accounts, Notes, Loans and Financing Receivable
30-59 Days	$ 615	$ 536
60-89 Days	3,068	795
Past Due 90 Days or More-Nonaccrual	3,612	5,622
Total Past Due	7,295	6,953
Total Current	428,081	349,301
Total Loans	435,376	356,254
Non-Accrual Loans	4,856	6,114
Residential real estate
Accounts, Notes, Loans and Financing Receivable
Total Loans	92,440	94,875
Home equity
Accounts, Notes, Loans and Financing Receivable
Total Loans	35,389	42,696
Commercial real estate
Accounts, Notes, Loans and Financing Receivable
Total Loans	264,448	180,735
Construction
Accounts, Notes, Loans and Financing Receivable
Total Loans	42	1,187
Commercial business
Accounts, Notes, Loans and Financing Receivable
Total Loans	29,720	19,612
Consumer
Accounts, Notes, Loans and Financing Receivable
Total Loans	13,337	17,149
Originated
Accounts, Notes, Loans and Financing Receivable
30-59 Days	615	536
60-89 Days	858	795
Past Due 90 Days or More-Nonaccrual	2,477	4,567
Total Past Due	3,950	5,898
Total Current	264,640	265,886
Total Loans	268,590	271,784
Non-Accrual Loans	3,399	5,059
Originated \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
30-59 Days	278	261
60-89 Days	408	183
Past Due 90 Days or More-Nonaccrual	1,965	2,907
Total Past Due	2,651	3,351
Total Current	87,083	87,593
Total Loans	89,734	90,944
Non-Accrual Loans	2,346	3,090
Originated \| Home equity
Accounts, Notes, Loans and Financing Receivable
30-59 Days	53	16
60-89 Days	47	160
Past Due 90 Days or More-Nonaccrual	253	136
Total Past Due	353	312
Total Current	35,036	42,384
Total Loans	35,389	42,696
Non-Accrual Loans	334	220
Originated \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
30-59 Days	91
60-89 Days	326	208
Past Due 90 Days or More-Nonaccrual	98	417
Total Past Due	515	625
Total Current	99,887	99,571
Total Loans	100,402	100,196
Non-Accrual Loans	473	417
Originated \| Construction
Accounts, Notes, Loans and Financing Receivable
Total Current	42	1,187
Total Loans	42	1,187
Originated \| Commercial business
Accounts, Notes, Loans and Financing Receivable
60-89 Days		107
Past Due 90 Days or More-Nonaccrual	44	901
Total Past Due	44	1,008
Total Current	29,642	18,604
Total Loans	29,686	19,612
Non-Accrual Loans	110	1,008
Originated \| Consumer
Accounts, Notes, Loans and Financing Receivable
30-59 Days	193	259
60-89 Days	77	137
Past Due 90 Days or More-Nonaccrual	117	206
Total Past Due	387	602
Total Current	12,950	16,547
Total Loans	13,337	17,149
Non-Accrual Loans	136	324
Purchased
Accounts, Notes, Loans and Financing Receivable
60-89 Days	2,210
Past Due 90 Days or More-Nonaccrual	1,135	1,055
Total Past Due	3,345	1,055
Total Current	163,441	83,415
Total Loans	166,786	84,470
Non-Accrual Loans	1,457	1,055
Purchased \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Total Loans	2,706	3,931
Purchased \| Commercial real estate
Accounts, Notes, Loans and Financing Receivable
60-89 Days	2,210
Past Due 90 Days or More-Nonaccrual	1,135	1,055
Total Past Due	3,345	1,055
Total Current	160,701	79,484
Total Loans	164,046	80,539
Non-Accrual Loans	1,457	1,055
Purchased \| Commercial business
Accounts, Notes, Loans and Financing Receivable
Total Current	34
Total Loans	34
Purchased \| Residential real estate
Accounts, Notes, Loans and Financing Receivable
Total Current	2,706	3,931
Total Loans	$ 2,706	$ 3,931

Loans, Allowance for Loan Losses and Credit Quality (Details 6) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities Acquired During Period
Contractually required payments receivable	$ 62,182	$ 35,455
Nonaccretable difference	(12,942)	(8,765)
Cash flows expected to be collected	49,240	26,690
Accretable yield	(19,280)	(8,589)
Fair value of loans acquired	29,960	18,101
Beginning balance	7,169
Accretion	(5,278)	(1,912)
Acquisitions	19,280	8,589
Reclassifications from nonaccretable difference	1,257	1,156
Other changes	(5,984)	(664)
End balance	16,444	7,169
Unpaid principal balance	48,340	21,359
Carrying amount	$ 30,775	$ 13,866

Loans, Allowance for Loan Losses and Credit Quality (Details 7) $ in Thousands	12 Months Ended
	Jun. 30, 2013 USD ($) contract	Jun. 30, 2012 USD ($) contract
Financing Receivable, Modifications
Number of Contracts \| contract	25	3
Recorded Investment Pre-Modification	$ 1,597	$ 343
Recorded Investment Post-Modification	$ 1,617	$ 343
Originated
Financing Receivable, Modifications
Number of Contracts \| contract	23	3
Recorded Investment Pre-Modification	$ 1,390	$ 343
Recorded Investment Post-Modification	$ 1,337	$ 343
Originated \| Residential real estate
Financing Receivable, Modifications
Number of Contracts \| contract	12	1
Recorded Investment Pre-Modification	$ 1,113	$ 139
Recorded Investment Post-Modification	$ 1,113	$ 139
Originated \| Home equity
Financing Receivable, Modifications
Number of Contracts \| contract	4	1
Recorded Investment Pre-Modification	$ 158	$ 20
Recorded Investment Post-Modification	$ 158	$ 20
Originated \| Commercial real estate
Financing Receivable, Modifications
Number of Contracts \| contract	1	1
Recorded Investment Pre-Modification	$ 103	$ 184
Recorded Investment Post-Modification	$ 50	$ 184
Originated \| Consumer
Financing Receivable, Modifications
Number of Contracts \| contract	6
Recorded Investment Pre-Modification	$ 16
Recorded Investment Post-Modification	$ 16
Purchased
Financing Receivable, Modifications
Number of Contracts \| contract	2
Recorded Investment Pre-Modification	$ 207
Recorded Investment Post-Modification	$ 280
Purchased \| Commercial real estate
Financing Receivable, Modifications
Number of Contracts \| contract	2
Recorded Investment Pre-Modification	$ 207
Recorded Investment Post-Modification	$ 280

Loans, Allowance for Loan Losses and Credit Quality (Details 8) $ in Millions	Sep. 30, 2012 USD ($)
Residential and consumer loans
Financing Receivable, Impaired
Collateral dependent impaired loans	$ 1.1

Loans, Allowance for Loan Losses and Credit Quality (Details 9) $ in Thousands	12 Months Ended
	Jun. 30, 2013 USD ($) contract loans	Jun. 30, 2012 USD ($) contract loans
Financing Receivable, Modifications
Number of Contracts \| contract	25	3
Recorded Investment \| $	$ 1,617	$ 343
Number of loans modified by TDR subsequently defaulted \| loans	0	0
Extended maturity
Financing Receivable, Modifications
Number of Contracts \| contract	4	1
Recorded Investment \| $	$ 180	$ 20
Adjusted interest rate
Financing Receivable, Modifications
Number of Contracts \| contract	5
Recorded Investment \| $	$ 240
Rate and maturity
Financing Receivable, Modifications
Number of Contracts \| contract	6	1
Recorded Investment \| $	$ 736	$ 184
Principal deferment
Financing Receivable, Modifications
Number of Contracts \| contract	2	1
Recorded Investment \| $	$ 72	$ 139
Protective advance
Financing Receivable, Modifications
Number of Contracts \| contract	1
Recorded Investment \| $	$ 201
Court ordered concession
Financing Receivable, Modifications
Number of Contracts \| contract	4
Recorded Investment \| $	$ 184
Other
Financing Receivable, Modifications
Number of Contracts \| contract	3
Recorded Investment \| $	$ 4

Loans, Allowance for Loan Losses and Credit Quality (Details 10) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Financing Receivable, Modifications
Nonaccrual	$ 1,110	$ 139
Accrual	2,632	1,165
Total TDRs	$ 3,742	$ 1,304

Loans, Allowance for Loan Losses and Credit Quality (Details 11) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Originated \| Commercial Real Estate
Financing Receivable, Recorded Investment
Loan by risk rating	$ 100,402	$ 100,196
Originated \| Construction
Financing Receivable, Recorded Investment
Loan by risk rating	42	1,187
Originated \| Commercial and Industrial
Financing Receivable, Recorded Investment
Loan by risk rating	29,686	19,612
Originated \| Loans rated 1- 6 \| Commercial Real Estate
Financing Receivable, Recorded Investment
Loan by risk rating	95,834	96,963
Originated \| Loans rated 1- 6 \| Construction
Financing Receivable, Recorded Investment
Loan by risk rating	42	1,187
Originated \| Loans rated 1- 6 \| Commercial and Industrial
Financing Receivable, Recorded Investment
Loan by risk rating	29,340	18,223
Originated \| Loans rated 7 \| Commercial Real Estate
Financing Receivable, Recorded Investment
Loan by risk rating	3,537	1,886
Originated \| Loans rated 7 \| Commercial and Industrial
Financing Receivable, Recorded Investment
Loan by risk rating	82	250
Originated \| Loans rated 8 \| Commercial Real Estate
Financing Receivable, Recorded Investment
Loan by risk rating	1,031	1,347
Originated \| Loans rated 8 \| Commercial and Industrial
Financing Receivable, Recorded Investment
Loan by risk rating	264	1,139
Purchased
Financing Receivable, Recorded Investment
Loan by risk rating	166,786	84,470
Purchased \| Loans rated 1- 6
Financing Receivable, Recorded Investment
Loan by risk rating	161,965	83,415
Purchased \| Loans rated 7
Financing Receivable, Recorded Investment
Loan by risk rating	3,226	$ 1,055
Purchased \| Loans rated 8
Financing Receivable, Recorded Investment
Loan by risk rating	$ 1,595

Premises and Equipment (Details) - USD ($) $ in Thousands	12 Months Ended
Premises and Equipment (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Premises and Equipment
Gross premises and equipment	$ 13,515	$ 11,029
Less accumulated depreciation	3,440	1,824
Net premises and equipment	10,075	9,205
Depreciation and amortization of premises and equipment included in occupancy and equipment expense	1,700	1,300
Land
Premises and Equipment
Gross premises and equipment	940	1,210
Buildings
Premises and Equipment
Gross premises and equipment	$ 2,120	2,120
Estimated useful life	39 years
Assets recorded under capital lease
Premises and Equipment
Gross premises and equipment	$ 1,850	1,850
Leasehold and building improvements
Premises and Equipment
Gross premises and equipment	$ 2,310	940
Leasehold and building improvements \| Minimum
Premises and Equipment
Estimated useful life	5 years
Leasehold and building improvements \| Maximum
Premises and Equipment
Estimated useful life	39 years
Furniture, fixtures and equipment
Premises and Equipment
Gross premises and equipment	$ 6,295	$ 4,909
Furniture, fixtures and equipment \| Minimum
Premises and Equipment
Estimated useful life	3 years
Furniture, fixtures and equipment \| Maximum
Premises and Equipment
Estimated useful life	7 years

Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
Intangible Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Identifiable Intangibles
Balance at the beginning of period	$ 4,487	$ 13,133
Amortization	943	1,266
Assets sold or disposed		(7,380)
Balance at the end of period	$ 3,544	4,487
Core Deposit Intangible
Changes in the carrying amount of intangible assets
Amortization period	9 years 6 months
Identifiable Intangibles
Balance at the beginning of period	$ 4,487	5,685
Amortization	(943)	(1,198)
Balance at the end of period	$ 3,544	4,487
Other Intangibles
Identifiable Intangibles
Balance at the beginning of period		7,448
Amortization		(68)
Assets sold or disposed		$ (7,380)

Intangible Assets (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Components of identifiable intangible assets
Net carrying amount	$ 3,544	$ 4,487	$ 13,133
Estimated annual amortization expense associated with intangible assets
2014	746
2015	589
2016	477
2017	432
2018	433
Thereafter	867
Net carrying amount	3,544	4,487	13,133
Core Deposit Intangible
Components of identifiable intangible assets
Gross carrying amount	6,348	6,348
Accumulated amortization	(2,804)	(1,861)
Net carrying amount	3,544	4,487	5,685
Estimated annual amortization expense associated with intangible assets
Net carrying amount	$ 3,544	$ 4,487	$ 5,685

Deposits (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Composition of deposits
Demand	$ 46,425	$ 45,323
NOW	57,334	57,477
Money market	84,416	45,024
Regular savings	33,636	32,727
Time certificates of less than $100	99,373	100,292
Other time certificates	163,439	141,345
Total deposits	$ 484,623	$ 422,188

Deposits (Details 2) $ in Thousands	Jun. 30, 2013 USD ($)
Scheduled maturities of time certificates
2014	$ 103,557
2015	59,172
2016	48,218
2017	15,139
2018	32,586
Thereafter	4,140
Total	$ 262,812

Borrowings (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Weighted average
Weighted Average Cost
2013		1.46%
2015	2.08%	2.30%
2017	3.28%	3.48%
2018	3.68%	3.84%
Total (as a percent)	2.81%	2.47%
Carrying amount of FHLB advances
Carrying Amount
2013		$ 15,194
2015	$ 12,626	12,728
2017	10,296	10,382
2018	5,118	5,146
Total	28,040	43,450
Advances from FHLB Boston
Carrying Amount
2013		15,000
2015	12,500	12,500
2017	10,000	10,000
2018	5,000	5,000
Total	27,500	$ 42,500
General disclosures
Unpaid principal balance of FHLB advances, subject to call provisions	10,000
Additional capacity to borrow	44,000
Line of credit FHLB Boston
General disclosures
Available line of credit arrangement with the FHLB	$ 2,100

Borrowings (Details 2) - USD ($) $ in Thousands	12 Months Ended
Borrowings (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Wholesale Repurchase Agreements
Carrying Amount	$ 25,397	$ 66,183
Capital lease obligation
Term of capital leases	15 years
Present value of the lease payments as a percentage of the fair value of the property	90.00%
Minimum lease payments over the remaining term of the lease and the outstanding capital lease obligation
2014	$ 264
2015	264
2016	303
2017	306
2018	306
2019 and thereafter	637
Total	2,080
Imputed interest	(341)
Capital lease obligation	$ 1,739	$ 1,911
Short-Term Borrowings
Weighted average interest rate on short-term borrowings (as a percent)	0.00%	2.00%
Securities sold under wholesale repurchase agreements
Wholesale Repurchase Agreements
Unpaid Principal Balance	$ 25,000	$ 65,000
Carrying Amount	$ 25,397	$ 66,183
Weighted Average Cost	1.59%	1.56%
Securities sold under wholesale repurchase agreements \| Maturities in year one
Wholesale Repurchase Agreements
Unpaid Principal Balance		$ 40,000
Carrying Amount		$ 40,302
Weighted Average Cost		1.22%
Securities sold under wholesale repurchase agreements \| Maturities in year two
Wholesale Repurchase Agreements
Unpaid Principal Balance	$ 15,000	$ 15,000
Carrying Amount	$ 15,035	$ 15,358
Weighted Average Cost	0.80%	1.64%
Securities sold under wholesale repurchase agreements \| Maturities in year four
Wholesale Repurchase Agreements
Unpaid Principal Balance	$ 10,000	$ 10,000
Carrying Amount	$ 10,362	$ 10,523
Weighted Average Cost	2.74%	2.74%

Junior Subordinated Debentures Issued to Affiliated Trusts (Details) $ / shares in Units, $ in Thousands		1 Months Ended	12 Months Ended
	Feb. 23, 2010	Sep. 30, 2009	Jun. 30, 2013 USD ($) item $ / shares	Jun. 30, 2012 USD ($)	Jun. 30, 2010 USD ($)
Junior Subordinated Debentures Issued to Affiliated Trusts
Carrying Amount of Junior Subordinated Debentures issued to affiliated trusts			$ 8,268	$ 8,106
Interest rate cap
Junior Subordinated Debentures Issued to Affiliated Trusts
Number of derivative instruments \| item			2
Notional amount					$ 6,000
Strike rate (as a percent)			2.51%	2.51%
Variable rate basis of derivative			three month LIBOR
Interest rate swap
Junior Subordinated Debentures Issued to Affiliated Trusts
Interest rate paid			4.69%	4.69%
Interest rate received over base rate			2.25%	2.36%
Junior Subordinated Debentures
Junior Subordinated Debentures Issued to Affiliated Trusts
Carrying Amount of Junior Subordinated Debentures issued to affiliated trusts			$ 8,268	$ 8,106
NBN Capital Trust II Debenture maturing March 30, 2034
Junior Subordinated Debentures Issued to Affiliated Trusts
Carrying Amount of Junior Subordinated Debentures issued to affiliated trusts			$ 1,775	1,747
Variable interest rate basis			three month LIBOR
Spread on variable rate basis (as a percent)			2.80%
NBN Capital Trust II Debenture maturing March 30, 2034 \| Interest rate cap
Junior Subordinated Debentures Issued to Affiliated Trusts
Notional amount			$ 3,000
Strike rate (as a percent)			2.505%
Percentage increase in three-month LIBOR for recognition of higher interest expense			2.00%
Maturity term		5 years
NBN Capital Trust III Debenture maturing March 30, 2034
Junior Subordinated Debentures Issued to Affiliated Trusts
Carrying Amount of Junior Subordinated Debentures issued to affiliated trusts			$ 1,775	1,747
Variable interest rate basis			three month LIBOR
Spread on variable rate basis (as a percent)			2.80%
NBN Capital Trust III Debenture maturing March 30, 2034 \| Interest rate cap
Junior Subordinated Debentures Issued to Affiliated Trusts
Notional amount			$ 3,000
Strike rate (as a percent)			2.505%
Percentage increase in three-month LIBOR for recognition of higher interest expense			2.00%
Maturity term		5 years
NBN Capital Trust IV Debenture maturing February 23, 2035
Junior Subordinated Debentures Issued to Affiliated Trusts
Carrying Amount of Junior Subordinated Debentures issued to affiliated trusts			$ 4,718	4,612
Variable interest rate basis			three month LIBOR
Spread on variable rate basis (as a percent)			1.89%
NBN Capital Trust IV Debenture maturing February 23, 2035 \| Interest rate swap
Junior Subordinated Debentures Issued to Affiliated Trusts
Notional amount					$ 10,000
Maturity term	5 years
Interest rate paid			4.69%
Variable rate basis of derivative			three month LIBOR
Interest rate received over base rate			1.89%
Trust preferred securities
Junior Subordinated Debentures Issued to Affiliated Trusts
Number of private placement offerings in which securities are sold \| item			2
Unpaid Principal Balance of Private Trust Securities issued			$ 16,496	16,496
NBN Capital Trust II
Junior Subordinated Debentures Issued to Affiliated Trusts
Common securities of trust			93
NBN Capital Trust II \| Trust preferred securities
Junior Subordinated Debentures Issued to Affiliated Trusts
Unpaid Principal Balance of Private Trust Securities issued			$ 3,093	3,093
Contractual Rate of Private Trust Securities issued (as a percent)			3.26%
Liquidation amount per Preferred Security \| $ / shares			$ 1,000
NBN Capital Trust III
Junior Subordinated Debentures Issued to Affiliated Trusts
Common securities of trust			$ 93
NBN Capital Trust III \| Trust preferred securities
Junior Subordinated Debentures Issued to Affiliated Trusts
Unpaid Principal Balance of Private Trust Securities issued			$ 3,093	3,093
Contractual Rate of Private Trust Securities issued (as a percent)			3.26%
Liquidation amount per Preferred Security \| $ / shares			$ 1,000
NBN Capital Trust IV
Junior Subordinated Debentures Issued to Affiliated Trusts
Common securities of trust			$ 310
NBN Capital Trust IV \| Trust preferred securities
Junior Subordinated Debentures Issued to Affiliated Trusts
Unpaid Principal Balance of Private Trust Securities issued			$ 10,310	$ 10,310
Contractual Rate of Private Trust Securities issued (as a percent)			2.36%
Liquidation amount per Preferred Security \| $ / shares			$ 1,000

Capital and Regulatory Matters (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Additional disclosures
Percentage of loans funded with core deposits	100.00%
Minimum
Total capital to risk weighted assets
Minimum Capital Requirements Ratio (as a percent)	15.00%
Tier 1 capital to average assets
Minimum Capital Requirements Ratio (as a percent)	10.00%
Additional disclosures
Tier 1 leverage ratio (as a percent)	10.00%
Total risk-based capital ratio (as a percent)	15.00%
Maximum
Additional disclosures
Purchased loans as a percentage of total loans	40.00%
Commercial real estate held as a percentage of total risk-based capital	300.00%
Company
Total capital to risk weighted assets
Actual Amount	$ 122,291	$ 124,452
Actual Ratio (as a percent)	27.54%	33.34%
Minimum Capital Requirements Amount	$ 35,520	$ 29,863
Minimum Capital Requirements Ratio (as a percent)	8.00%	8.00%
Tier 1 capital to risk weighted assets
Actual Amount	$ 121,148	$ 123,628
Actual Ratio (as a percent)	27.29%	33.12%
Minimum Capital Requirements Amount	$ 17,760	$ 14,931
Minimum Capital Requirements Ratio (as a percent)	4.00%	4.00%
Tier 1 capital to average assets
Actual Amount	$ 121,148	$ 123,628
Actual Ratio (as a percent)	17.78%	19.91%
Minimum Capital Requirements Amount	$ 27,255	$ 24,837
Minimum Capital Requirements Ratio (as a percent)	4.00%	4.00%
Additional disclosures
Tier 1 leverage ratio (as a percent)	4.00%	4.00%
Total risk-based capital ratio (as a percent)	8.00%	8.00%
Bank
Total capital to risk weighted assets
Actual Amount	$ 99,527	$ 75,081
Actual Ratio (as a percent)	22.30%	20.14%
Minimum Capital Requirements Amount	$ 35,709	$ 29,824
Minimum Capital Requirements Ratio (as a percent)	8.00%	8.00%
Minimum To Be Well Capitalized Under Prompt Correction Action Provisions Amount	$ 44,637	$ 37,280
Minimum To Be Well Capitalized Under Prompt Correction Action Provisions Ratio (as a percent)	10.00%	10.00%
Tier 1 capital to risk weighted assets
Actual Amount	$ 95,485	$ 70,414
Actual Ratio (as a percent)	21.39%	18.89%
Minimum Capital Requirements Amount	$ 17,855	$ 14,910
Minimum Capital Requirements Ratio (as a percent)	4.00%	4.00%
Minimum To Be Well Capitalized Under Prompt Correction Action Provisions Amount	$ 26,782	$ 22,365
Minimum To Be Well Capitalized Under Prompt Correction Action Provisions Ratio (as a percent)	6.00%	6.00%
Tier 1 capital to average assets
Actual Amount	$ 95,485	$ 70,414
Actual Ratio (as a percent)	14.08%	11.43%
Minimum Capital Requirements Amount	$ 27,121	$ 24,642
Minimum Capital Requirements Ratio (as a percent)	4.00%	4.00%
Minimum To Be Well Capitalized Under Prompt Correction Action Provisions Amount	$ 33,902	$ 30,802
Minimum To Be Well Capitalized Under Prompt Correction Action Provisions Ratio (as a percent)	5.00%	5.00%
Additional disclosures
Tier 1 leverage ratio (as a percent)	4.00%	4.00%
Total risk-based capital ratio (as a percent)	8.00%	8.00%

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Common Share
Net income from continuing operations	$ 4,420	$ 1,016
Preferred stock dividends and accretion	(355)	(392)
Net income from continuing operations available to common shareholders	$ 4,065	$ 624
Weighted average shares used in calculation of basic earnings per share	10,409,588	4,277,777
Incremental shares from assumed exercise of dilutive securities		13,575
Weighted average shares used in calculation of diluted earnings per share	10,409,588	4,291,352
Earnings per common share:
Income from continuing operations (in dollars per share)	$ 0.39	$ 0.15
Income from discontinued operations (in dollars per share)		0.26
Earnings per common share (in dollars per share)	0.39	0.41
Diluted earnings per common share:
Income from continuing operations (in dollars per share)	0.39	0.15
Income from discontinued operations (in dollars per share)		0.26
Diluted earnings per common share (in dollars per share)	$ 0.39	$ 0.41

Earnings Per Common Share (Details 2) - shares	12 Months Ended
Earnings Per Common Share (Details 2) - shares	Jun. 30, 2013	Jun. 30, 2012
Earnings Per Share
Anti-dilutive securities	994,914	796,049
Stock options
Earnings Per Share
Anti-dilutive securities	963,549	796,049
Warrants
Earnings Per Share
Anti-dilutive securities	31,365

- Definition

Securities (including those issuable pursuant to contingent stock agreements) that could potentially dilute basic earnings per share (EPS) or earnings per unit (EPU) in the future that were not included in the computation of diluted EPS or EPU because to do so would increase EPS or EPU amounts or decrease loss per share or unit amounts for the period presented.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Antidilution
-URI http://asc.fasb.org/extlink&oid=6505113

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Diluted Earnings Per Share
-URI http://asc.fasb.org/extlink&oid=6510752

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Contingent Stock Agreement
-URI http://asc.fasb.org/extlink&oid=6508534

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 260
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=6371337&loc=d3e3550-109257

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 40
-Subparagraph c
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 13, 14
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Emerging Issues Task Force (EITF)
-Number 07-4
-Paragraph 4
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 128
-Paragraph 171
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes (Details) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Current provision (benefit)
Federal	$ 2,179	$ (1,033)
State	194	71
Total current provision (benefit)	2,373	(962)
Deferred (benefit) provision
Federal	(428)	1,143
Total deferred (benefit) provision		1,143
Total deferred (benefit) provision	(428)	1,827
Total tax provision	$ 1,945	$ 181

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted federal tax law to the domestic taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
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-Section S99
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-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
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Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Paragraph Question 1-7

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

+ Details

- Definition

The component of income tax expense for the period representing amounts of income taxes paid or payable (or refundable) for the period for all income tax obligations as determined by applying the provisions of relevant enacted tax laws to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (a)
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-Name Accounting Standards Codification
-Glossary Current Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6509736

Reference 4: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of income tax expense for the period representing amounts paid or payable (or refundable) as determined by applying the provisions of enacted state and local tax law to relevant amounts of taxable Income or Loss from continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
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-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
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-Publisher FASB
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-URI http://asc.fasb.org/extlink&oid=6509736

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-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

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-Name Statement of Financial Accounting Standard (FAS)
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
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Reference 8: http://www.xbrl.org/2003/role/presentationRef
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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of total income tax expense for the period comprised of the increase (decrease) during the period in the entity's domestic deferred tax assets and liabilities attributable to continuing operations as determined by applying the provisions of the federally enacted tax law.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 8, 16, 17, 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

- Definition

The component of income tax expense for the period representing the increase (decrease) in the entity's deferred tax assets and liabilities pertaining to continuing operations.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 230
-SubTopic 10
-Section 45
-Paragraph 28
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6943989&loc=d3e3602-108585

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Glossary Deferred Tax Expense (or Benefit)
-URI http://asc.fasb.org/extlink&oid=6510177

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 9
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=6907707&loc=d3e32639-109319

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08.(h))
-URI http://asc.fasb.org/extlink&oid=6881521&loc=d3e23780-122690

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.7)
-URI http://asc.fasb.org/extlink&oid=6889476&loc=d3e330036-122817

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 08
-Paragraph h
-Article 4

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 289
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 109
-Paragraph 45
-Subparagraph b
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 9: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Staff Accounting Bulletin (SAB)
-Number Topic 6
-Section I
-Subsection 7

Reference 10: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 95
-Paragraph 28
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

+ Details

Income Taxes (Details 2) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Income Taxes
Statutory federal income tax rate (as a percent)	34.00%
Reconciliation between the statutory federal income tax rate and the effective tax rate on income from continuing operations
Expected income tax expense at federal tax rate	$ 2,164	$ 407
State tax, net of federal tax benefit	128	47
Non-taxable BOLI income	(244)	(170)
Low-income housing tax credit	(118)	(118)
Other	15	15
Total tax provision	$ 1,945	$ 181

Income Taxes (Details 3) - USD ($) $ in Thousands	12 Months Ended
Income Taxes (Details 3) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Deferred tax assets
Allowance for loan losses	$ 378	$ 280
Loan basis differential	931	629
Time deposit basis differential	252	589
Derivative basis differential	89	146
Capital lease	127	120
Deferred compensation	138	213
Stock-based compensation	584	418
Unrealized loss on derivatives	89	130
Unrealized loss on available for sale securities	896
Interest on nonperforming loans	266	212
Limited partnerships	123	97
Other	232	205
Total deferred tax asset	4,105	3,039
Deferred tax liabilities
Goodwill and other intangible assets	(1,205)	(1,526)
Prepaid expenses	(56)	(268)
Premises and equipment	(761)	(801)
Borrowings basis differential	(2,479)	(2,127)
Unrealized gain on available for sale securities		(212)
Other	(63)	(59)
Total deferred tax liability	(4,564)	(4,993)
Net deferred tax liability	(459)	(1,954)
Additional disclosures
Reserve for loan losses	$ 2,000
Percentage of amount actually used for purposes other than to absorb losses subject to taxation in the year in which used	150.00%
Amount of provision for potential liability that would result, if 100% of the reserve were recaptured	$ 0
Percentage of reserves recaptured	100.00%
Uncertain tax positions related to federal and state income tax matters	$ 0	$ 0

Employee Benefit Plans (Details) $ in Thousands	12 Months Ended
Employee Benefit Plans (Details) $ in Thousands	Jun. 30, 2013 USD ($) item	Jun. 30, 2012 USD ($)
401(k) Plan
Eligible age for full-time salaried and hourly-paid employees under 401(k) plan	18 years
Completed employment required for full-time salaried and hourly-paid employees under 401(k) plan	90 days
Maximum employees contribution as a percentage of their base compensation	100.00%
Employer match of employee contributions of first 6% of base compensation (as a percent)	50.00%
Percentage of base compensation, matched 50% by employer	6.00%
Employer contributions	$ 350	$ 308
Deferred Compensation
Number of senior officers \| item	5
Deferred compensation expense	$ 160	159
Deferred compensation liability	$ 405	$ 245

Stock-Based Compensation (Details) - $ / shares	12 Months Ended
Stock-Based Compensation (Details) - $ / shares	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2013	Jun. 30, 2012
Stock-Based Compensation
Outstanding at beginning of year, Shares	796,049
Granted, shares	395,919
Forfeited, shares	(18,301)
Outstanding at end of year, Shares	1,173,667	796,049
Options Exercisable, Shares	126,714	54,175	126,714	54,175
Options outstanding at beginning of year, Weighted Average Exercise Price (in dollars per share)	$ 13.98
Granted, Weighted Average Exercise Price	9.38
Forfeited, Weighted Average Exercise Price	13.40
Options outstanding at end of year, Weighted Average Exercise Price (in dollars per share)	$ 12.44	$ 13.98
Options Exercisable, Weighted Average Exercise Price			$ 14.08
Shares
Exercisable, beginning of year (in shares)	54,175
Vested (in shares)	75,239
Forfeited or expired (in shares)	(2,700)
Exercisable, end of year (in shares)	126,714	54,175
Weighted Average Grant Date Fair Value
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageGrantDateFairValue	$ 3.86	$ 3.86
Vested (in dollars per share)	3.86
Forfeited or expired (in dollars per share)	3.85
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageGrantDateFairValue	$ 3.86	$ 3.86
2010 Plan
Stock-Based Compensation
Number of shares authorized				810,054
Restated Plan
Stock-Based Compensation
Number of additional shares authorized		600,000
Number of shares authorized				1,410,054

Stock-Based Compensation (Details 2)	12 Months Ended
Stock-Based Compensation (Details 2)	Jun. 30, 2013 item $ / shares shares	Jun. 30, 2012 $ / shares
Stock Awards
Granted, shares \| shares	395,919
Number of tranches in which options were granted \| item	3
Stock options with market-based conditions
Stock Awards
Granted, shares \| shares	237,616
Number of executives to whom options were granted \| item	3
Stock options with market-based conditions \| First tranche \| December 29, 2010 through December 29, 2015
Stock Awards
Applicable hurdle price (in dollar per share)	$ 27.86
Stock options with market-based conditions \| First tranche \| December 29, 2015 through December 29, 2016
Stock Awards
Applicable hurdle price (in dollar per share)	31.34
Stock options with market-based conditions \| First tranche \| December 29, 2016 through December 29, 2017
Stock Awards
Applicable hurdle price (in dollar per share)	34.83
Stock options with market-based conditions \| First tranche \| December 29, 2010 through December 28, 2015
Stock Awards
Amended hurdle price (in dollar per share)	16.43
Stock options with market-based conditions \| First tranche \| December 29, 2015 through December 28, 2016
Stock Awards
Amended hurdle price (in dollar per share)	18.58
Stock options with market-based conditions \| First tranche \| December 29, 2016 through December 28, 2017
Stock Awards
Amended hurdle price (in dollar per share)	20.77
Stock options with market-based conditions \| Second tranche \| December 29, 2016 through December 29, 2017
Stock Awards
Applicable hurdle price (in dollar per share)	34.83
Stock options with market-based conditions \| Second tranche \| December 29, 2010 through December 29, 2016
Stock Awards
Applicable hurdle price (in dollar per share)	31.34
Stock options with market-based conditions \| Second tranche \| December 29, 2016 through December 28, 2017
Stock Awards
Amended hurdle price (in dollar per share)	20.77
Stock options with market-based conditions \| Second tranche \| December 29, 2010 through December 28, 2016
Stock Awards
Amended hurdle price (in dollar per share)	18.58
Stock options with market-based conditions \| Third tranche \| December 29, 2010 through December 29, 2017
Stock Awards
Applicable hurdle price (in dollar per share)	34.83
Stock options with market-based conditions \| Third tranche \| December 29, 2010 through December 28, 2017
Stock Awards
Amended hurdle price (in dollar per share)	$ 20.77
Black-Scholes option-pricing model
Assumptions:
Dividend yield (as a percent)	3.86%	2.81%
Expected life	6 years 6 months	6 years
Expected volatility (as a percent)	30.47%	33.86%
Risk-free interest rate (as a percent)	1.26%	0.98%
Weighted average fair value per option (in dollar per share)	$ 1.79	$ 4.39
Hull-White option pricing model
Assumptions:
Dividend yield (as a percent)	3.72%
Expected life	7 years 9 months 18 days
Incremental weighted average fair value per option (in dollar per share)	$ 0.52
Stock Awards
Expected volatility, minimum (as a percent)	28.45%
Expected volatility, maximum (as a percent)	32.84%
Risk-free interest rate, minimum (as a percent)	0.07%
Risk-free interest rate, maximum (as a percent)	1.54%

Stock-Based Compensation (Details 3) $ / shares in Units, $ in Thousands	12 Months Ended
	Jun. 30, 2013 USD ($) $ / shares shares
$9.38
Information by exercise price
Options outstanding at end of period, Weighted Average Exercise Price	$ 9.38
Options Outstanding Number \| shares	395,919
Outstanding Weighted Average Remaining Life	9 years 6 months 29 days
Outstanding Aggregate Intrinsic Value \| $	$ 115
Exercisable Weighted Average Exercise Price	$ 9.38
Exercisable Weighted Average Remaining Life	9 years 6 months 29 days
$12.63
Information by exercise price
Options outstanding at end of period, Weighted Average Exercise Price	$ 12.63
Options Outstanding Number \| shares	32,500
Outstanding Weighted Average Remaining Life	8 years 6 months 29 days
Exercisable Weighted Average Exercise Price	$ 12.63
Exercisable Weighted Average Remaining Life	8 years 6 months 29 days
$13.93
Information by exercise price
Options outstanding at end of period, Weighted Average Exercise Price	$ 13.93
Options Outstanding Number \| shares	583,238
Outstanding Weighted Average Remaining Life	7 years 6 months
Exercisable Weighted Average Exercise Price	$ 13.93
Options Exercisable Number \| shares	94,312
Exercisable Weighted Average Remaining Life	7 years 6 months
$14.52
Information by exercise price
Options outstanding at end of period, Weighted Average Exercise Price	$ 14.52
Options Outstanding Number \| shares	162,010
Outstanding Weighted Average Remaining Life	7 years 6 months
Exercisable Weighted Average Exercise Price	$ 14.52
Options Exercisable Number \| shares	32,402
Exercisable Weighted Average Remaining Life	7 years 6 months
$12.44
Information by exercise price
Options outstanding at end of period, Weighted Average Exercise Price	$ 12.44
Options Outstanding Number \| shares	1,173,667
Outstanding Weighted Average Remaining Life	8 years 2 months 23 days
Outstanding Aggregate Intrinsic Value \| $	$ 115
Exercisable Weighted Average Exercise Price	$ 12.44
Options Exercisable Number \| shares	126,714
Exercisable Weighted Average Remaining Life	7 years 6 months

Stock-Based Compensation (Details 4) - Restricted stock	12 Months Ended
Stock-Based Compensation (Details 4) - Restricted stock	Jun. 30, 2013 $ / shares shares
Shares
Unvested at beginning of period (in shares) \| shares	13,026
Granted (in shares) \| shares	63,202
Vested (in shares) \| shares	(5,210)
Unvested at end of period (in shares) \| shares	71,018
Weighted Average Grant-Date Fair Value
Unvested at beginning of period (in dollars per share) \| $ / shares	$ 13.93
Granted (in dollars per share) \| $ / shares	9.33
Vested (in dollars per share) \| $ / shares	13.93
Unvested at end of period (in dollars per share) \| $ / shares	$ 9.84

- Definition

The weighted average fair value of nonvested awards on equity-based plans excluding option plans (for example, phantom stock or unit plan, stock or unit appreciation rights plan, revenue or profit achievement stock award plan) for which the employer is contingently obligated to issue equity instruments or transfer assets to an employee who has not yet satisfied service or performance criteria necessary to gain title to proceeds from the sale of the award or underlying shares or units.

+ References + Details

Stock-Based Compensation (Details 5) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Share-based Compensation Arrangement by Share-based Payment Award
Stock-based compensation expense	$ 563	$ 445
Tax benefit related to stock-based compensation expense	191	151
2014	641
2015	667
2016	542
2017	341
2018	152
Total	2,343
Stock appreciation rights
Share-based Compensation Arrangement by Share-based Payment Award
Unrecognized compensation expense	48	$ 48
Stock options
Share-based Compensation Arrangement by Share-based Payment Award
2014	523
2015	549
2016	424
2017	223
2018	83
Total	1,802
Restricted stock
Share-based Compensation Arrangement by Share-based Payment Award
2014	118
2015	118
2016	118
2017	118
2018	69
Total	$ 541

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Residential real estate mortgages
Commitments
Financial instruments which represent credit risk	$ 12,445	$ 10,279
Construction loans
Commitments
Financial instruments which represent credit risk		106
Consumer
Commitments
Financial instruments which represent credit risk		25
Commercial real estate mortgages
Commitments
Financial instruments which represent credit risk		361
Commercial business loans
Commitments
Financial instruments which represent credit risk	904	1,145
Commitments to originate loans
Commitments
Financial instruments which represent credit risk	13,349	11,916
Unused lines of credit
Commitments
Financial instruments which represent credit risk	30,809	36,276
Standby letters of credit
Commitments
Financial instruments which represent credit risk	$ 420	602
Unadvanced portions of construction loans
Commitments
Financial instruments which represent credit risk		$ 162

Commitments, Contingent Liabilities and Other Off-Balance Sheet Risks (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Contingencies
Allowance for possible losses on commitments and unfunded loans	$ 10	$ 6
Lease Obligations
Rental expense	1,000	$ 817
Future minimum lease payments over the remaining terms of leases
2014	1,120
2015	1,168
2016	1,080
2017	939
2018	955
2019 and thereafter	4,279
Total	$ 9,541
Maximum
Contingencies
Term of outstanding letters of credit	1 year

Condensed Parent Information (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012	Jun. 30, 2011
Assets:
Other assets	$ 4,422	$ 8,052
Total assets	670,639	669,196
Liabilities and Stockholders' Equity:
Junior subordinated debentures issued to affiliated trusts	8,268	8,106
Other liabilities	8,145	7,010
Total liabilities	556,837	550,057
Stockholders' equity	113,802	119,139	$ 64,954
Total liabilities and stockholders' equity	670,639	669,196
Northeast Bancorp
Assets:
Cash	26,366	54,996
Investment in subsidiary	96,294	72,849
Investment in common securities of affiliated trusts	496	496
Other assets	1,445	2,047
Total assets	124,601	130,388
Liabilities and Stockholders' Equity:
Junior subordinated debentures issued to affiliated trusts	8,268	8,106
Other liabilities	2,531	3,143
Total liabilities	10,799	11,249
Stockholders' equity	113,802	119,139
Total liabilities and stockholders' equity	$ 124,601	$ 130,388

Condensed Parent Information (Details 2) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Income:
Other income	$ 388	$ 261
Total interest and dividend income	36,543	27,014
Expenses:
Interest expense	769	751
Income tax benefit	1,945	181
Net income	4,420	2,163
Net income available to common stockholders	4,065	1,771
Northeast Bancorp
Income:
Dividends from banking subsidiary		1,500
Other income	14	26
Total interest and dividend income	14	1,526
Expenses:
Interest expense	769	751
General and administrative expenses	1,037	993
Total expenses	1,806	1,744
Loss before income tax benefit and equity in undistributed net income of subsidiary	(1,792)	(218)
Income tax benefit	(615)	(589)
(Loss) income before equity in undistributed net income of subsidiary	(1,177)	371
Equity in undistributed net income of subsidiary	5,597	1,792
Net income	4,420	2,163
Net income available to common stockholders	$ 4,065	$ 1,771

Condensed Parent Information (Details 3) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Operating activities:
Net income	$ 4,420	$ 2,163
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Stock-based compensation	563	445
Increase in other assets and liabilities		(512)
Net cash provided by (used in) operating activities	1,323	(6,974)
Investing activities:
Net cash used in investing activities	(63,083)	(18,639)
Financing activities:
Proceeds from issuance of common stock	(59)	52,667
Redemption of preferred stock and warrants	(4,326)
Net cash (used in) provided by financing activities	(580)	69,956
Net (decrease) increase in cash and cash equivalents	(62,340)	44,343
Cash and cash equivalents, beginning of year	128,274	83,931
Cash and cash equivalents, end of year	65,934	128,274
Northeast Bancorp
Operating activities:
Net income	4,420	2,163
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Amortization of fair value adjustment for borrowings	162	149
Stock-based compensation	563	445
Undistributed earnings of subsidiary	(5,597)	(1,792)
Increase in other assets and liabilities	70	(700)
Net cash provided by (used in) operating activities	(382)	265
Investing activities:
Increase in investment of bank subsidiary	(20,000)
Net cash used in investing activities	(20,000)
Financing activities:
Proceeds from issuance of common stock	(59)	52,667
Redemption of preferred stock and warrants	(4,326)
Dividends paid to stockholders	(3,863)	(1,474)
Net cash (used in) provided by financing activities	(8,248)	51,193
Net (decrease) increase in cash and cash equivalents	(28,630)	51,458
Cash and cash equivalents, beginning of year	54,996	3,538
Cash and cash equivalents, end of year	$ 26,366	$ 54,996

Other Comprehensive Income (Details) - USD ($) $ in Thousands	12 Months Ended
	Jun. 30, 2013	Jun. 30, 2012
Other Comprehensive Income
Change in net unrealized gain or loss on available-for-sale securities	$ (2,469)	$ 1,896
Reclassification adjustment for net gains included in net income	792	1,111
Total available-for-sale securities	(3,261)	785
Change in accumulated loss on effective cash flow hedges	192	(122)
Reclassification adjustment for net gains included in net income	70	80
Total derivatives and hedging activities	122	(202)
Total other comprehensive (loss) income	(3,139)	583
Change in net unrealized gain or loss on available-for-sale securities	(840)	645
Reclassification adjustment for net gains included in net income	(269)	(378)
Total available-for-sale securities	(1,109)	267
Change in accumulated loss on effective cash flow hedges	66	(41)
Reclassification adjustment for net gains included in net income	(24)	(27)
Total derivatives and hedging activities	42	(68)
Total other comprehensive (loss) income	(1,067)	199
Change in net unrealized gain or loss on available-for-sale securities	(1,629)	1,251
Reclassification adjustment for net gains included in net income	(523)	(733)
Total available-for-sale securities	(2,152)	518
Change in accumulated loss on effective cash flow hedges	126	(81)
Reclassification adjustment for net gains included in net income	(46)	(53)
Total derivatives and hedging activities	80	(134)
Total other comprehensive (loss) income	$ (2,072)	$ 384

Other Comprehensive Income (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Accumulated other comprehensive (loss) income components
Net-of tax amount	$ (1,914)	$ 158
Unrealized (loss) gain on available-for-sale securities
Accumulated other comprehensive (loss) income components
Before tax	(2,636)	624
Tax effect	896	(212)
Net-of tax amount	(1,740)	412
Unrealized loss on cash flow hedges
Accumulated other comprehensive (loss) income components
Before tax	(263)	(384)
Tax effect	89	130
Net-of tax amount	$ (174)	$ (254)

- Definition

Accumulated change in equity from transactions and other events and circumstances from non-owner sources, net of tax effect, at period end. Excludes Net Income (Loss), and accumulated changes in equity from transactions resulting from investments by owners and distributions to owners. Includes foreign currency translation items, certain pension adjustments, unrealized gains and losses on certain investments in debt and equity securities, other than temporary impairment (OTTI) losses related to factors other than credit losses on available-for-sale and held-to-maturity debt securities that an entity does not intend to sell and it is not more likely than not that the entity will be required to sell before recovery of the amortized cost basis, as well as changes in the fair value of derivatives related to the effective portion of a designated cash flow hedge.

+ References

Reference 1: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 11
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e637-108580

Reference 2: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=20435746&loc=d3e681-108580

Reference 3: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 220
-SubTopic 10
-Section 45
-Paragraph 14A
-URI http://asc.fasb.org/extlink&oid=20435746&loc=SL7669686-108580

Reference 4: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 02
-Paragraph 31
-Article 5

Reference 5: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name FASB Staff Position (FSP)
-Number FAS115-1/124-1
-Paragraph 15D
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 6: http://www.xbrl.org/2003/role/presentationRef
-Publisher AICPA
-Name Accounting Principles Board Opinion (APB)
-Number 12
-Paragraph 10
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 7: http://www.xbrl.org/2003/role/presentationRef
-Publisher FASB
-Name Statement of Financial Accounting Standard (FAS)
-Number 130
-Paragraph 14, 17, 26
-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef
-Publisher SEC
-Name Regulation S-X (SX)
-Number 210
-Section 04
-Article 3

+ Details

Fair Value Measurements (Details) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Fair Value Measurements
Transfers of assets and liabilities measured at fair value on a recurring or nonrecurring basis	$ 0
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	121,597	$ 133,264
U.S. Government agency securities
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	45,333	45,808
Agency mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	76,264	87,456
Level 2
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	121,597	133,264
Level 2 \| Interest rate caps
Fair Value Assets And Liabilities Measured On Recurring Basis
Other assets - interest rate caps		1
Level 2 \| Interest rate swap
Fair Value Assets And Liabilities Measured On Recurring Basis
Other liabilities - interest rate swap	389	580
Recurring \| Interest rate caps
Fair Value Assets And Liabilities Measured On Recurring Basis
Other assets - interest rate caps		1
Recurring \| Interest rate swap
Fair Value Assets And Liabilities Measured On Recurring Basis
Other liabilities - interest rate swap	389	580
Recurring \| U.S. Government agency securities
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	45,333	45,808
Recurring \| Agency mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	76,264	87,456
Recurring \| Level 2 \| Interest rate caps
Fair Value Assets And Liabilities Measured On Recurring Basis
Other assets - interest rate caps		1
Recurring \| Level 2 \| Interest rate swap
Fair Value Assets And Liabilities Measured On Recurring Basis
Other liabilities - interest rate swap	389	580
Recurring \| Level 2 \| U.S. Government agency securities
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	45,333	45,808
Recurring \| Level 2 \| Agency mortgage-backed securities
Fair Value Assets And Liabilities Measured On Recurring Basis
Available-for-sale securities	$ 76,264	$ 87,456

Fair Value Measurements (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Fair Value Assets And Liabilities Measured On Nonrecurring Basis
Collateral dependent impaired loans	$ 5,572	$ 4,638
Real estate owned and other repossessed collateral	2,134	834
Nonrecurring
Fair Value Assets And Liabilities Measured On Nonrecurring Basis
Collateral dependent impaired loans	894	1,103
Real estate owned and other repossessed collateral	2,134	834
Nonrecurring \| Level 3
Fair Value Assets And Liabilities Measured On Nonrecurring Basis
Collateral dependent impaired loans	894	1,103
Real estate owned and other repossessed collateral	$ 2,134	$ 834

Fair Value Measurements (Details 3) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Financial assets:
Available-for-sale securities	$ 121,597	$ 133,264
Regulatory stock	5,721	5,473
Financial liabilities:
Capital lease obligation	1,739	1,911
Total Fair Value Measurement
Financial assets:
Cash and cash equivalents	65,934	128,274
Available-for-sale securities	121,597	133,264
Regulatory stock	5,721	5,473
Loans held for sale	8,602	9,896
Loans, net	444,988	374,062
Accrued interest receivable	1,396	1,840
Financial liabilities:
Deposits	449,857	425,782
FHLB advances	29,404	45,747
Wholesale repurchase agreements	26,092	67,314
Short-term borrowings	625	1,209
Capital lease obligation	1,926	2,202
Subordinated debentures	7,594	8,597
Total Fair Value Measurement \| Interest Rate Caps
Financial assets:
Interest rate caps		1
Total Fair Value Measurement \| Interest Rate Swap
Financial liabilities:
Interest rate swaps	389	580
Level 1
Financial assets:
Cash and cash equivalents	65,934	128,274
Level 2
Financial assets:
Available-for-sale securities	121,597	133,264
Regulatory stock	5,721	5,473
Loans held for sale	8,602	9,896
Accrued interest receivable	1,396	1,840
Financial liabilities:
Deposits	449,857	425,782
FHLB advances	29,404	45,747
Wholesale repurchase agreements	26,092	67,314
Short-term borrowings	625	1,209
Capital lease obligation	1,926	2,202
Level 2 \| Interest Rate Caps
Financial assets:
Interest rate caps		1
Level 2 \| Interest Rate Swap
Financial liabilities:
Interest rate swaps	389	580
Level 3
Financial assets:
Loans, net	444,988	374,062
Financial liabilities:
Subordinated debentures	7,594	8,597
Carrying Amount
Financial assets:
Cash and cash equivalents	65,934	128,274
Available-for-sale securities	121,597	133,264
Regulatory stock	5,721	5,473
Loans held for sale	8,594	9,882
Loans, net	434,233	355,430
Accrued interest receivable	1,396	1,840
Financial liabilities:
Deposits	484,623	422,188
FHLB advances	28,040	43,450
Wholesale repurchase agreements	25,397	66,183
Short-term borrowings	625	1,209
Capital lease obligation	1,739	1,911
Subordinated debentures	8,268	8,106
Carrying Amount \| Interest Rate Caps
Financial assets:
Interest rate caps		1
Carrying Amount \| Interest Rate Swap
Financial liabilities:
Interest rate swaps	$ 389	$ 580

Derivatives (Details) $ in Thousands	12 Months Ended
Derivatives (Details) $ in Thousands	Jun. 30, 2013 USD ($) item	Jun. 30, 2012 USD ($) item
Derivative
Margin account balance	$ 800	$ 800
Additional collateral requirements	0	0
Interest income (expense) on hedge ineffectiveness and excluded from effectiveness testing	$ 70	$ 80
Interest rate caps
Derivative
Number of derivative instruments held \| item	2
Variable rate basis	three month LIBOR
Number of derivative agreements terminated prior to maturity \| item	0	0
Interest income (expense) on hedge ineffectiveness and excluded from effectiveness testing	$ (30)	$ (20)
Interest Income (Expense) on hedge ineffectiveness related to next twelve months	$ 32
Interest rate swap
Derivative
Number of derivative agreements terminated prior to maturity \| item	0	0
Interest income (expense) on hedge ineffectiveness and excluded from effectiveness testing	$ 100	$ 100
Interest Income (Expense) on hedge ineffectiveness related to next twelve months	$ 100

Derivatives (Details 2) - USD ($) $ in Thousands	12 Months Ended
Derivatives (Details 2) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Interest Rate Caps
Derivative
Notional amount	$ 6,000	$ 6,000
Strike rate based on three month LIBOR	2.51%	2.51%
Variable rate basis	three month LIBOR
Weighted average maturity	1 year 3 months	2 years 3 months
Unrealized loss	$ 40	$ 69
Interest Rate Swap
Derivative
Notional amount	$ 10,000	$ 10,000
Weighted average pay rate	4.69%	4.69%
Weighted average receive rate	2.25%	2.36%
Weighted average maturity	1 year 8 months 1 day	2 years 8 months 1 day
Unrealized loss	$ 223	$ 315

Derivatives (Details 3) - USD ($) $ in Thousands	Jun. 30, 2013	Jun. 30, 2012
Interest rate caps \| Other assets
Derivative
Fair value of interest rate caps		$ 1
Interest rate swap \| Other liabilities
Derivative
Fair value of interest rate swaps	$ 389	$ 580

- Definition

Fair values as of the balance sheet date of all assets resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements.

+ References + Details

- Definition

Fair values as of the balance sheet date of all liabilities resulting from contracts that meet the criteria of being accounted for as derivative instruments, net of the effects of master netting arrangements.

+ References + Details

Troubled Asset Relief Capital Purchase Program (Details) $ in Thousands	3 Months Ended
	Dec. 31, 2012 USD ($) shares
Troubled Asset Relief Capital Purchase Program
Amount paid to redeem shares of preferred stock	$ 4,200
TARP warrant
Troubled Asset Relief Capital Purchase Program
Number of shares repurchased by common stock warrant \| shares	67,958
Amount of warrants repurchased	$ 95

Discontinued Operations (Details) $ in Thousands		12 Months Ended
Discontinued Operations (Details) $ in Thousands	Aug. 31, 2011 USD ($) item	Jun. 30, 2013 USD ($)	Jun. 30, 2012 USD ($)	Sep. 30, 2011 item
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Sale proceeds			$ 9,889
Pretax gain on sale of customer lists and certain fixed assets of an agency office			1,566
Summary of operations
Interest expense		$ 6,596	6,317
Noninterest income:
Total noninterest income		12,225	9,676
Noninterest expense:
Salaries and employee benefits		19,218	15,634
Occupancy and equipment expense		4,766	3,826
Professional fees		1,634	1,708
Data processing fees		1,141	1,088
Intangible asset amortization		943	1,266
Other		2,734	2,497
Total noninterest expense		$ 34,685	28,230
Income from discontinued operations			186
Gain on sale of assets			1,566
Income tax expense			605
Net income from discontinued operations			1,147
NGIB
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Number of separate transactions in which customer list and certain fixed assets sold \| item	2			2
Sale proceeds	$ 9,889
Customer lists and other intangible assets, net	7,380
Fixed assets, net of accumulated depreciation	164
Severance and other direct expenses	779
Pre-tax gain recognized	$ 1,566
NGIB \| Segment, Discontinued Operations
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations
Pretax gain on sale of customer lists and certain fixed assets of an agency office			1,566
Summary of operations
Interest expense			14
Noninterest income:
Insurance commissions			965
Other noninterest income (expense)			(4)
Total noninterest income			961
Noninterest expense:
Salaries and employee benefits			494
Occupancy and equipment expense			88
Professional fees			16
Data processing fees			38
Intangible asset amortization			68
Other			57
Total noninterest expense			761
Income from discontinued operations			186
Gain on sale of assets			1,566
Income from discontinued operations before income tax expense			1,752
Income tax expense			605
Net income from discontinued operations			$ 1,147