Note

– Securities

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

December 31, 2016
Obligations of U.S. government-sponsored entities and agencies	$	10,081	$	69	$	(89	)	$	10,061
Obligations of state and political subdivisions		56,809		520		(668	)		56,661
Mortgage-backed securities – residential		56,055		294		(506	)		55,843
Mortgage-backed securities– commercial		1,472		—		(3	)		1,469
Collateralized mortgage obligations– residential		6,960		3		(132	)		6,831
Pooled trust preferred security		154		266		—			420

Total available-for-sale securities	$	131,531	$	1,152	$	(1,398	)	$	131,285

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value

December 31, 2016
Obligations of state and political subdivisions	$	4,296	$	8	$	(11	)	$	4,293

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

June 30, 2016
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, 2016
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 December 31,				Six Months Ended December 31,
	2016		2015		2016		2015
Proceeds from sales	$	1,594	$	—	$	3,383	$	1,990
Gross realized gains		24		—		127		35
Gross realized losses		2		—		2		—

The income tax provision applicable to these net realized gains amounted to

and

$43

for the

three

and

six

months ended

December

31,

2016

and

$12

for the

six

months ended

December

31,

2015.

The amortized cost and fair values of debt securities at

December

31,

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	$	1,484	$	1,493
Due after one year through five years		17,504		17,684
Due after five years through ten years		26,182		26,174
Due after ten years		21,720		21,371
Total		66,890		66,722

U.S. Government-sponsored mortgage-backed and related securities		64,487		64,143
Pooled trust preferred security		154		420
Total available-for-sale securities	$	131,531	$	131,285

Held-to-Maturity

Due after five years through ten years		638		645
Due after ten years		3,658		3,648
Total held-to-maturity securities	$	4,296	$	4,293

The following table summarizes the securities with unrealized losses at

December

31,

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
December 31, 2016
Obligations of US government-sponsored entities and agencies	$	6,303	$	(89	)	$	—	$	—		$	6,303	$	(89	)
Obligations of states and political subdivisions		28,565		(663	)		271		(5	)		28,836		(668	)
Mortgage-backed securities - residential		35,797		(449	)		3,197		(57	)		38,994		(506	)
Mortgage-backed securities - commercial		1,469		(3	)		—		—			1,469		(3	)
Collateralized mortgage obligations – residential816(1)——816(1)		5,590		(117	)		988		(15	)		6,578		(132	)

Total temporarily impaired	$	77,724	$	(1,321	)	$	4,456	$	(77	)	$	82,180	$	(1,398	)

	Less than 12 Months					12 Months or more				Total
Held - to - Maturity	Amortized Cost		Gross Unrecognized Loss			Amortized Cost		Gross Unrecognized Loss		Amortized Cost		Gross Unrecognized Loss
December 3 1 , 2016
Obligations of states and political subdivisions	$	933	$	(11	)	$	—	$	—	$	933	$	(11	)
Total temporarily impaired	$	933	$	(11	)	$	—	$	—	$	933	$	(11	)

	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, 2016
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

December

31,

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 within the securities portfolio is largely due to changes in interest rates and 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.