Securities

9 Months Ended

Mar. 31, 2014

Investments, Debt and Equity Securities [Abstract]

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2 – Securities

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
March 31, 2014
Obligations of U.S. government-sponsored entities and agencies	$	16,490	$	34	$	(96)	$	16,428
Obligations of state and political subdivisions		42,386		819		(495)		42,710
Mortgage-backed securities – residential		60,545		619		(411)		60,753
Collateralized mortgage obligations		4,206		25		(19)		4,212
Trust preferred security		202		171		—		373
Total securities	$	123,829	$	1,668	$	(1,021)	$	124,476

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
March 31, 2014
Obligations of state and political subdivisions	$	3,000	$	—	$	(43)	$	2,957

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
June 30, 2013
Obligations of U.S. government-sponsored entities and agencies	$	4,700	$	6	$	(48)	$	4,658
Obligations of state and political subdivisions		39,777		805		(770)		39,812
Mortgage-backed securities - residential		46,834		552		(497)		46,889
Collateralized mortgage obligations		5,740		11		(43)		5,708
Trust preferred security		202		—		(40)		162
Total securities	$	97,253	$	1,374	$	(1,398)	$	97,229

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2013
Obligations of state and political subdivisions	$	3,000	$	—	$	(74)	$	2,926

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2014		2013		2014		2013
Proceeds from sales	$	216	$	3,780	$	2,981	$	4,459
Gross realized gains		4		125		37		148
Gross realized losses		—		24		1		24

The amortized cost and fair values of debt securities at March 31, 2014, 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 trust preferred security are shown separately.

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	2,028	$	2,081
Due after one year through five years		5,331		5,409
Due after five years through ten years		30,715		30,754
Due after ten years		20,802		20,894
Total		58,876		59,138
Mortgage-backed securities – residential		60,545		60,753
Collateralized mortgage obligations		4,206		4,212
Trust preferred security		202		373
Total available-for-sale securities	$	123,829	$	124,476
Held-to-Maturity
Due after ten years		3,000		2,957
Total held-to-maturity securities	$	3,000	$	2,957

The following table summarizes the securities with unrealized and unrecognized losses at March 31, 2014 and June 30, 2013, aggregated by investment category and length of time that individual securities have been in a continuous unrealized or unrecognized loss position:

	Less than 12 Months				12 Months or more				Total
Available-for-sale	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
March 31, 2014
Obligations of U.S. government- sponsored entities and agencies	$	13,045	$	(96)	$	—	$	—	$	13,045	$	(96)
Obligations of states and political subdivisions		11,008		(301)		4,227		(194)		15,235		(495)
Mortgage-backed securities - residential		20,115		(197)		6,896		(214)		27,011		(411)
Collateralized mortgage obligations		1,480		(19)		—		—		1,480		(19)
Total temporarily impaired	$	45,648	$	(613)	$	11,123	$	(408)	$	56,771	$	(1,021)

	Less than 12 Months				12 Months or more				Total
Held-to-maturity	Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss
March 31, 2014
Obligations of states and political subdivisions	$	3,000	$	(43)	$	—	$	—	$	2,957	$	(43)

	Less than 12 Months				12 Months or more				Total
Available-for-sale	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
June 30, 2013
Obligation of U.S. government- sponsored entities and agencies	$	4,418	$	(48)	$	—	$	—	$	4,418	$	(48)
Obligations of states and political subdivisions		17,826		(766)		107		(4)		17,933		(770)
Mortgage-backed securities - residential		28,836		(497)		—		—		28,836		(497)
Collateralized mortgage obligations		4,696		(43)		—		—		4,696		(43)
Trust preferred security		—		—		162		(40)		162		(40)
Total temporarily impaired	$	55,776	$	(1,354)	$	269	$	(44)	$	56,045	$	(1,398)

	Less than 12 Months				12 Months or more				Total
Held-to-maturity	Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss
June 30, 2013
Obligations of states and political subdivisions	$	2,926	$	(74)	$	—	$	—	$	2,926	$	(74)

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. However, the trust preferred security is evaluated using the model outlined in FASB ASC Topic 325, Recognition of Interest Income and Impairment on Purchased Beneficial Interests and Beneficial Interests that Continue to be Held by a Transfer in Securitized Financial Assets.

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 and unrecognized losses within the securities portfolio as of March 31, 2014 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 residential mortgage-backed securities, obligations of state and political subdivisions and obligations of U.S. government-sponsored agencies is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity.

Under the ASC Topic 325 model, the present value of the remaining cash flows as estimated at the preceding evaluation date are compared to the current expected remaining cash flows. An OTTI is deemed to have occurred if there has been an adverse change in the remaining expected future cash flows. The analysis of the trust preferred security falls within the scope of ASC Topic 325.

The Corporation owns a trust preferred security, which represents collateralized debt obligations (CDOs) issued by other banks, bank holding companies and insurance companies. It was unclear whether the Corporation would be able to continue to hold this trust preferred security under the Volcker Rule that was issued on December 10, 2013. On January 14, 2014, an interim rule amending the treatment of certain CDOs under the Volcker Rule, allows the Corporation to continue to hold this trust preferred security since it is primarily invested in qualifying collateral. Management has the intent to hold this security for the foreseeable future. The security is part of a pool of issuers that support a more senior tranche of securities. The cash interest payments for the trust preferred security are being deferred as a result of an increase in principal and/or interest deferrals by the issuers of the underlying securities during the period of 2008 through 2011. The accumulated other-than-temporary impairment loss recognized in earnings in periods prior to 2012 was $780. According to the March 31, 2014 cash flow analysis, the expected cash flows were above the recorded amortized cost of the trust preferred security and the Corporation has received pricing indications that are above the securities adjusted amortized cost of $202. Therefore, management does not believe there is any additional other-than-temporary impairment related to this security at March 31, 2014.