Note 2 – Securities


			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
Available –for-Sale	Cost		Gains		Losses		Value
December 31, 2014
Obligations of U.S. government-sponsored entities and agencies	$	17,384	$	152	$	(24)	$	17,512
Obligations of state and political subdivisions		44,930		1,071		(111)		45,890
Mortgage-backed securities – residential		63,129		957		(124)		63,962
Collateralized mortgage obligations		4,439		26		(3)		4,462
Trust preferred security		198		318		—		516
Total available-for-sale securities	$	130,080	$	2,524	$	(262)	$	132,342

			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
Held-to-Maturity	Cost		Gains		Losses		Value
December 31, 2014
Obligations of state and political subdivisions	$	3,690	$	36	$	—	$	3,726

			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		Gross
	Amortized		Unrecognized		Unrecognized		Fair
Held-to-Maturity	Cost		Gains		Losses		Value
June 30, 2014
Obligations of state and political subdivisions	$	3,000	$	40	$	—	$	3,040

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

	Three Months Ended				Six Months Ended
	December 31,				December 31,
	2014		2013		2014		2013
Proceeds	$	8,672	$	2,765	$	13,044	$	2,765
Gross realized gains		154		33		191		33
Gross realized losses		69		1		69		1

The income tax provision applicable to these net realized gains and losses was $29 and $42 for the three and six months ended December 31, 2014, respectively and $11 for the three and six months ended December 31, 2013.

The amortized cost and fair values of debt securities at December 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.

	Amortized		Fair
Available-for-Sale	Cost		Value
Due in one year or less	$	3,309	$	3,317
Due after one year through five years		10,534		10,612
Due after five years through ten years		32,514		33,114
Due after ten years		15,957		16,359
Total		62,314		63,402

Mortgage-backed securities – residential		63,129		63,962
Collateralized mortgage obligations		4,439		4,462
Trust preferred security		198		516
Total available-for-sale securities	$	130,080	$	132,342

Held-to-Maturity

Due after five years through ten years		780		780
Due after ten years		2,910		2,946
Total held-to-maturity securities	$	3,690	$	3,726

The following table summarizes the securities with unrealized losses at December 31, 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
December 31, 2014
Obligations of U.S. government- sponsored entities and agencies	$	5,460	$	(24)	$	—	$	—	$	5,460	$	(24)
Obligations of states and political subdivisions		5,646		(41)		4,910		(70)		10,556		(111)
Mortgage-backed securities – residential		8,437		(25)		6,669		(99)		15,106		(124)
Collateralized mortgage obligations		1,263		(3)		—		—		1,263		(3)

Total temporarily impaired	$	20,806	$	(93)	$	11,579	$	(169)	$	32,385	$	(262)

	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 certain point in time.

The unrealized losses within the securities portfolio as of December 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 entities and agencies is largely due to changes in interest rates. The fair value is expected to recover as the securities approach maturity.