Note 2 – Securities

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Available –for-Sale	Cost		Gains		Losses		Value

September 30, 2014
Obligations of U.S. government-sponsored entities and agencies	$	21,650	$	67	$	(132)	$	21,585
Obligations of state and political subdivisions		44,520		1,144		(145)		45,519
Mortgage-backed securities – residential		61,674		768		(277)		62,165
Collateralized mortgage obligations		3,553		37		(3)		3,587
Trust preferred security		202		357		—		559
Total available-for-sale securities	$	131,599	$	2,373	$	(557)	$	133,415

Gross

Amortized

Unrecognized

Fair

Held-to-Maturity

Cost

Gains

Losses

Value

September 30, 2014

Obligations of state and political subdivisions

2,910

—

2,957

			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Available–for-Sale	Cost		Gains		Losses		Value

June 30, 2014
Obligations of U.S. government-sponsored entities and agencies	$	18,345	$	126	$	(35)	$	18,436
Obligations of state and political subdivisions		44,645		1,124		(257)		45,512
Mortgage-backed securities – residential		57,370		965		(231)		58,104
Collateralized mortgage obligations		3,887		42		—		3,929
Trust preferred security		202		210		—		412
Total available-for-sale securities	$	124,449	$	2,467	$	(523)	$	126,393

Gross

Amortized

Unrecognized

Fair

Held-to-Maturity

Cost

Gains

Losses

Value

June 30, 2014

Obligations of state and political subdivisions

3,000

—

3,040

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

	Three Months Ended
	September 30,
	2014		2013
Proceeds from sales	$	4,372	$	—
Gross realized gains		37		—

The income tax provision applicable to realized gains amounted to $12 in 2014.

The amortized cost and fair values of debt securities at September 30, 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.

	Amortized		Estimated Fair
	Cost		Value
Available-for-Sale
Due in one year or less	$	2,184	$	2,210
Due after one year through five years		10,758		10,818
Due after five years through ten years		33,709		34,130
Due after ten years		19,519		19,946
Total		66,170		67,104

Mortgage-backed securities – residential		61,674		62,165
Collateralized mortgage obligations		3,553		3,587
Trust preferred security		202		559
Total available-for-sale securities	$	131,599	$	133,415

Held-to-Maturity

Due after ten years		2,910		2,957
Total held-to-maturity securities	$	2,910	$	2,957

The following table summarizes the securities with unrealized losses at September 30, 2014 and June 30, 2014, 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

September 30, 2014
Obligations of U.S. government- sponsored entities and agencies	$	12,614	$	(111)	$	1,479	$	(21)	$	14,093	$	(132)
Obligations of states and political subdivisions		2,532		(11)		8,574		(134)		11,106		(145)
Mortgage-backed securities - residential		11,020		(59)		9,707		(218)		20,727		(277)
Collateralized mortgage obligations		1,331		(3)		—		—		1,331		(3)
Total temporarily impaired	$	27,497	$	(184)	$	19,760	$	(373)	$	47,257	$	(557)

	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, 2014
Obligation of U.S. government- sponsored entities and agencies	$	1,492	$	(7)	$	5,411	$	(28)	$	6,903	$	(35)
Obligations of states and political subdivisions		9,929		(223)		3,719		(34)		13,648		(257)
Mortgage-backed securities - residential		10,403		(210)		2,342		(21)		12,745		(231)
Total temporarily impaired	$	21,824	$	(440)	$	11,472	$	(83)	$	33,296	$	(523)

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 September 30, 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 entities and agencies is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity.