XML 20 R10.htm IDEA: XBRL DOCUMENT v3.8.0.1
Note 2 - Securities
 6 Months Ended
Dec. 31, 2017
Notes to Financial Statements  
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]
Note
2
– Securities
 
Available
–for-Sale
 
  
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Value
 
December
31, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Obligations of U.S. government-sponsored entities and agencies
   $
13,752
     $
30
     $
(146
)
   $
13,636
  
Obligations of state and political subdivisions
    
56,718
      
746
      
(283
)
    
57,181
  
Mortgage-backed securities
– residential
    
58,051
      
98
      
(631
)
    
57,518
  
Mortgage-backed securities
– commercial
    
1,446
      
—
      
(10
)
    
1,436
  
Collateralized mortgage obligations
– residential
    
5,483
      
—
      
(137
)
    
5,346
  
Pooled trust preferred security
    
178
      
443
      
—
      
621
  
Total available-for-sale securities
   $
135,628
     $
1,317
     $
(1,207
)
   $
135,738
  
 
Held-to-Maturity
 
  
Amortized
Cost
   
Gross
Unrecognized
Gains
   
Gross
Unrecognized Losses
   
Fair
Value
 
December 31, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Obligations of state and
political subdivisions
   $
4,061
     $
22
     $
—
     $
4,083
  
 
Available
–for-Sale
  
Amortized
Cost
   
Gross
Unrealized
Gains
   
Gross
Unrealized
Losses
   
Fair
Value
 
June
30, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Obligations of U.S. government-sponsored entities and agencies
   $
12,571
     $
90
     $
(74
)
   $
12,587
  
Obligations of state and political subdivisions
    
56,824
      
890
      
(254
)
    
57,460
  
Mortgage-backed securities
– residential
    
64,092
      
184
      
(438
)
    
63,838
  
Mortgage-backed securities
– commercial
    
1,459
      
—
      
(1
)
    
1,458
  
Collateralized mortgage obligations - residential
    
6,310
      
1
      
(100
)
    
6,211
  
Pooled trust preferred security
    
155
      
377
      
—
      
532
  
Total available-for-sale securities
   $
141,411
     $
1,542
     $
(867
)
   $
142,086
  
 
Held-to-Maturity
  
Amortized
Cost
   
Gross
Unrecognized
Gains
   
Gross
Unrecognized
Losses
   
Fair
Value
 
June
30, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Obligations of state and political subdivisions
   $
4,259
     $
73
     $
(3
)
   $
4,329
  
 
Proceeds from the sale of available-for-sale securities were as follows:
 
   
Three Months Ended
December
31
    
Six Months Ended
December 31,
  
   
2017
    
2016
    
2017
    
2016
  
Proceeds from sales
   $
—
     $
1,594
     $
1,586
     $
3,383
  
Gross realized gains
    
—
      
24
      
39
      
127
  
Gross r
ealized losses
    
—
      
2
      
1
      
2
  
 
The i
ncome tax provision related to these net realized gains and losses amounted to
$13
for the
six
months ended
December 31, 2017
and
$8
and
$43
for the
three
and
six
months ended
December 31, 2016.
 
The amortized cost and fair values of debt securities at
December 31, 2017,
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
   $
2,170
     $
2,192
  
Due after one year through five years
    
18,053
      
18,167
  
Due after five years through ten years
    
28,838
      
28,992
  
Due after ten years
    
21,409
      
21,466
  
Total
    
70,470
      
70,817
  
                 
U.S. Government-sponsored mortgage-backed and related securities
    
64,980
      
64,300
  
Pooled trust preferred security
    
178
      
621
  
Total available-for-sale securities
   $
135,628
     $
135,738
  
                 
Held-to-Maturity
  
 
 
 
  
 
 
 
                 
Due after five years through ten years
    
564
      
579
  
Due after ten years
    
3,497
      
3,504
  
Total held-to-maturity securities
   $
4,061
     $
4,083
  
 
The following table summarizes the securities with unrealized losses at
December 31, 2017
and
June 
30,
2017,
aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:
 
(Dollars in thousands, except per share amounts)
 
   
Less than 12 Months
   
12 Months or mo
re
   
Total
 
Available-for-sale
  
Fair
Value
   
Unrealized
Loss
   
Fair
Value
   
Unrealized
Loss
    
Fair
Value
   
Unrealized
Loss
  
December 31, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Obligations of US government-sponsored entities and agencies
   $
9,901
     $
(146
)
   $
—
     $
—
     $
9,901
     $
(146
)
Obligations of states and political subdivisions
    
11,862
      
(93
)
    
8,179
      
(190
)
    
20,041
      
(283
)
Mortgage-backed securities - residential
    
27,316
      
(243
)
    
22,415
      
(388
)
    
49,731
      
(631
)
Mortgage-backed securities - commercial
    
1,435
      
(10
)
    
—
      
—
      
1,435
      
(10
)
Collateralized mortgage obligations
– residential
    
—
      
—
      
5,346
      
(137
)
    
5,346
      
(137
)
Total temporarily impaired
   $
50,514
     $
(492
)
   $
35,940
     $
(715
)
   $
86,454
     $
(1,207
)
 
   
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, 2017
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
  
 
 
 
Obligations of US government-sponsored entities and agencies
   $
4,336
     $
(74
)
   $
—
     $
—
     $
4,336
     $
(74
)
Obligations of states and political subdivisions
    
13,881
      
(241
)
    
834
      
(13
)
    
14,715
      
(254
)
Mortgage-backed securities - residential
    
42,071
      
(391
)
    
2,805
      
(47
)
    
44,876
      
(438
)
Mortgage-backed securities - commercial
    
1,458
      
(1
)
    
—
      
—
      
1,458
      
(1
)
Collateral mortgage obligation - residential
    
5,417
      
(88
)
    
654
      
(12
)
    
6,071
      
(100
)
Total temporarily impaired
   $
67,163
     $
(795
)
   $
4,293
     $
(72
)
   $
71,456
     $
(867
)
 
Management evaluates securities for other-than-temporary impairme
nt (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, 2017
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
not
likely that management will 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.