Note 2 – Securities

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2016
Obligations of U.S. government-sponsored entities and agencies	$	10,078	$	250	$	—		$	10,328
Obligations of state and political subdivisions		54,131		1,737		(9	)		55,859
Mortgage-backed securities – residential		54,013		832		(33	)		54,812
Mortgage-backed securities– commercial		1,479		24		—			1,503
Collateralized mortgage obligations– residential		5,360		29		(1	)		5,388
Pooled trust preferred security		154		266		—			420

Total available-for-sale securities	$	125,215	$	3,138	$	(43	)	$	128,310

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
September 30, 2016
Obligations of state and political subdivisions	$	4,399	$	111	$	—	$	4,510

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 201 6
Obligations of U.S. government-sponsored entities and agencies	$	9,682	$	362	$	—		$	10,044
Obligations of state and political subdivisions		53,952		2,010		(8	)		55,954
Mortgage-backed securities – residential		58,702		920		(26	)		59,596
Mortgage-backed securities – commercial		1,485		41		—			1,526
Collateralized mortgage obligations - residential		5,774		49		(3	)		5,820
Pooled trust preferred security		153		276		—			429

Total available-for-sale securities	$	129,748	$	3,658	$	(37	)	$	133,369

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 201 6
Obligations of state and political subdivisions	$	3,494	$	125	$	—	$	3,619

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

	Three Months Ended September 30,
	2016		2015
Proceeds from sales	$	1,789	$	1,990
Gross realized gains		103		35
Gross realized losses		—		—

The income tax provision applicable to these net realized gains amounted to $35 for the three months ended September 30, 2016 and $12 for the three months ended September 30, 2015.

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

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	3,697	$	3,724
Due after one year through five years		14,804		15,287
Due after five years through ten years		27,972		28,917
Due after ten years		17,736		18,259
Total		64,209		66,187

U.S. Government-sponsored mortgage-backed and related securities		60,852		61,703
Pooled trust preferred security		154		420
Total available-for-sale securities	$	125,215	$	128,310

Held-to-Maturity

Due after five years through ten years		674		702
Due after ten years		3,725		3,808
Total held-to-maturity securities	$	4,399	$	4,510

The following table summarizes the securities with unrealized losses at September 30, 2016 and June 30, 2016, 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
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2016
Obligations of states and political subdivisions	$	2,018	$	(6	)	$	275	$	(3	)	$	2,293	$	(9	)
Mortgage-backed securities - residential		7,573		(15	)		3,427		(18	)		11,000		(33	)
Collateralized mortgage obligations – residential816(1)——816(1)		—		—			1,103		(1	)		1,103		(1	)

Total temporarily impaired	$	9,591	$	(21	)	$	4,805	$	(22	)	$	14,396	$	(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, 201 6
Obligations of states and political subdivisions	$	572	$	(6	)	$	641	$	(2	)	$	1,213	$	(8	)
Mortgage-backed securities - residential		4,899		(12	)		4,836		(14	)		9,735		(26	)
Collateral mortgage obligation - residential		—		—			1,212		(3	)		1,212		(3	)

Total temporarily impaired	$	5,471	$	(18	)	$	6,689	$	(19	)	$	12,160	$	(37	)

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, 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.