SECURITIES

12 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

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

NOTE 2—SECURITIES

The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at June 30, 2015 and 2014 and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

			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
Trust preferred security		184		356		—		540
Total available-for-sale securities	$	135,781	$	2,059	$	(696)	$	137,144

			Gross		Gross
	Amortized		Unrecognized		Unrecognized		Fair
Held-to-maturity	Cost		Gains		Losses		Value
June 30, 2015
Obligations of state and political subdivisions	$	3,655	$	67	$	—	$	3,722
Total held-to-maturity securities	$	3,655	$	67	$	—	$	3,722

			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 - residential		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
Total held-to-maturity securities	$	3,000	$	40	$	—	$	3,040

Proceeds from sales and calls of available-for-sale securities during 2015 and 2014 were as follows:

	2015		2014
Proceeds from sales	$	16,124	$	4,648
Gross realized gains		283		50
Gross realized losses		123		1

The income tax provision applicable to realized gains amounted to $96 in 2015 and $17 in 2014. The income tax benefit applicable to the net realized losses was $42 for June 30, 2015 and there was no tax benefit recognized from gross realized losses in 2014.

The amortized cost and fair values of debt securities at June 30, 2015 by contractual 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		Fair Value
Due in one year or less	$	3,644	$	3,645
Due after one year through five years		13,394		13,643
Due after five years through ten years		29,385		29,661
Due after ten years		18,545		18,572
Total		64,968		65,521
Mortgage-backed securities – residential		64,441		64,914
Mortgage-backed securities – commercial		1,485		1,486
Collateralized mortgage obligations - residential		4,703		4,683
Trust preferred security		184		540
Total	$	135,781	$	137,144

Held-to-maturity	Amortized Cost		Fair Value
Due after five years through ten years	$	745	$	771
Due after ten years	$	2,910	$	2,951
Total	$	3,655	$	3,722

Securities with a carrying value of approximately $59,805 and $44,720 were pledged at June 30, 2015 and 2014, respectively, to secure public deposits and commitments as required or permitted by law. At June 30, 2015 and 2014, there were no holdings of securities of any one issuer, other than the U.S. government and its agencies, with an aggregate book value greater than 10% of shareholders’ equity.

The following table summarizes the securities with unrealized and unrecognized losses at June 30, 2015 and 2014, aggregated by investment category and length of time the 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
June 30, 2015
Obligations 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)
Collateralized mortgage obligations - residential		3,321		(34)		—		—		3,321		(34)
Total available-for-sale	$	50,158	$	(617)	$	4,176	$	(79)	$	54,334	$	(696)

	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, 2014
Obligations 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 available-for-sale	$	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. 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.

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.

As of June 30, 2015, the Corporation’s securities portfolio consisted of $137,144 available-for-sale securities, of which $54,334 were in an unrealized loss position. There were 84 securities in an unrealized loss position at June 30, 2015, eight of which were in a continuous loss position for twelve or more months. The unrealized losses related to the Corporation’s obligations of U.S. government-sponsored entities and agencies, obligations of states and political subdivisions, residential mortgage-backed securities and collateralized mortgage obligations, as discussed below:

U.S. Government-Sponsored Entities and Agencies: At June 30, 2015, the securities issued by U.S. government-sponsored entities and agencies held by the Corporation were primarily issued by Fannie Mae and Freddie Mac, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to higher interest rates, and not credit quality, and because the Corporation does not have the intent to sell nor is it likely that it will be required to sell the securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired.

Obligations of States and Political Subdivisions: At June 30, 2015, approximately 91.5% of the obligations of states and political subdivisions classified as available-for-sale were general obligation bonds and 8.5% were revenue bonds. The unrealized losses were mainly attributable to the spreads for these types of securities being wider at June 30, 2015 than when these securities were purchased and changes in interest rates. Management monitors the financial data of the individual municipalities to ensure they meet minimum credit standards. Since the Corporation does not intend to sell these securities and it is not likely the Corporation will be required to sell these securities at an unrealized loss position prior to any anticipated recovery in fair value, which may be maturity, management does not believe there is any other-than-temporary impairment related to these securities at June 30, 2015.

Mortgage-Backed Securities and Collateralized Mortgage Obligations: At June 30, 2015, all of the mortgage-backed securities and collateralized mortgage obligations held by the Corporation were issued by U.S. government-sponsored entities and agencies, primarily Fannie Mae, Freddie Mac and Ginnie Mae, institutions which the government has affirmed its commitment to support. Because the decline in fair value is attributable to higher interest rates and higher than projected prepayment speeds increasing the premium amortization, and not credit quality, and because the Corporation does not have the intent to sell nor is it likely that it will be required to sell the securities before their anticipated recovery, the Corporation does not consider these securities to be other-than-temporarily impaired.