Note 2 – Securities

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Available –for-Sale	Cost		Gains		Losses		Value
March 31, 2016
Obligations of U.S. government-sponsored entities and agencies	$	13,186	$	311	$	—	$	13,497
Obligations of state and political subdivisions		52,037		1,509		(12)		53,534
Mortgage-backed securities – residential		60,683		818		(39)		61,462
Mortgage-backed securities– commercial		1,487		27		—		1,514
Collateralized mortgage obligations– residential		4,643		30		(8)		4,665
Pooled trust preferred security		159		296		—		455
Total available-for-sale securities	$	132,195	$	2,991	$	(59)	$	135,127

Gross

Amortized

Unrecognized

Fair

Held-to-Maturity

Cost

Gains

Losses

Value

March 31, 2016

Obligations of state and political subdivisions

3,530

121

—

3,651

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Available–for-Sale	Cost		Gains		Losses		Value
June 30, 2015
Obligations of U.S. government-sponsored entities and agencies	$	16,411	$	178	$	(31)	$	16,558
Obligations of state and political subdivisions		48,557		811		(405)		48,963
Mortgage-backed securities – residential		64,441		699		(226)		64,914
Mortgage-backed securities – commercial		1,485		1		—		1,486
Collateralized mortgage obligations - residential		4,703		14		(34)		4,683
Pooled trust preferred security		184		356		—		540
Total available-for-sale securities	$	135,781	$	2,059	$	(696)	$	137,144

Gross

Amortized

Unrecognized

Fair

Held-to-Maturity

Cost

Gains

Losses

Value

June 30, 2015

Obligations of state and political subdivisions

3,655

—

3,722

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2016		2015		2016		2015
Proceeds from sales	$	4,675	$	3,080	$	6,665	$	16,124
Gross realized gains		87		50		122		241
Gross realized losses		—		54		—		123

The income tax provision applicable to these net realized gains amounted to $30 and $41 for the three and nine months ended March 31, 2016, respectively, and $39 for the nine month period ended March 31, 2015. The income tax benefit applicable to the net realized loss was $1 for the three month period ended March 31, 2015.

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

	Amortized		Estimated Fair
Available-for-Sale	Cost		Value
Due in one year or less	$	6,120	$	6,216
Due after one year through five years		15,868		16,371
Due after five years through ten years		26,880		27,669
Due after ten years		16,355		16,775
Total		65,223		67,031

U.S. Government-sponsored mortgage-backed and related securities		66,813		67,641
Pooled trust preferred security		159		455
Total available-for-sale securities	$	132,195	$	135,127

Held-to-Maturity

Due after five years through ten years		710		740
Due after ten years		2,820		2,911
Total held-to-maturity securities	$	3,530	$	3,651

The following table summarizes the securities with unrealized losses at March 31, 2016 and June 30, 2015, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-sale	Value		Loss		Value		Loss		Value		Loss
March 31, 2016
Obligations of states and political subdivisions	$	3,009	$	(10)	$	279	$	(2)	$	3,288	$	(12)
Mortgage-backed securities - residential		9,630		(23)		2,497		(16)		12,127		(39)
Collateralized mortgage obligations – residential		838		(7)		462		(1)		1,300		(8)
Total temporarily impaired	$	13,477	$	(40)	$	3,238	$	(19)	$	16,715	$	(59)

	Less than 12 Months				12 Months or more				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Available-for-sale	Value		Loss		Value		Loss		Value		Loss
June 30, 2015
Obligation of U.S. government- sponsored entities and agencies	$	3,719	$	(31)	$	—	$	—	$	3,719	$	(31)
Obligations of states and political subdivisions		18,796		(352)		2,145		(53)		20,941		(405)
Mortgage-backed securities - residential		24,322		(200)		2,031		(26)		26,353		(226)
Collateral mortgage obligation - residential		3,321		(34)		—		—		3,321		(34)
Total temporarily impaired	$	50,158	$	(617)	$	4,176	$	(79)	$	54,334	$	(696)

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

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

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