Note 2 - Securities

3 Months Ended

Sep. 30, 2018

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
September 30, 2018
Obligations of U.S. government-sponsored entities and agencies	$	16,320	$	—	$	(481	)	$	15,839
Obligations of state and political subdivisions		55,795		237		(974	)		55,058
U.S. Government-sponsored mortgage-backed securities–residential		62,011		—		(2,084	)		59,927
U.S. Government-sponsored mortgage-backed securities– commercial		1,425		—		(17	)		1,408
U.S. Government-sponsored collateralized mortgage obligations– residential		5,666		—		(230	)		5,436
Total available-for-sale securities	$	141,217	$	237	$	(3,786	)	$	137,668

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
September 30, 2018
Obligations of state and political subdivisions	$	3,929	$	45	$	(9	)	$	3,965
Total held-to-maturity securities	$	3,929	$	45	$	(9	)	$	3,965

Available–for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 201 8
Obligations of U.S. government-sponsored entities and agencies	$	16,488	$	6	$	(372	)	$	16,122
Obligations of state and political subdivisions		56,964		339		(713	)		56,590
U.S. Government-sponsored mortgage-backed securities – residential		65,062		6		(1,660	)		63,408
U.S. Government-sponsored mortgage-backed securities – commercial		1,432		—		(17	)		1,415
U.S. Government-sponsored collateralized mortgage obligations - residential		5,973		9		(216	)		5,766
Pooled trust preferred security		178		549		—			727
Total available-for-sale securities	$	146,097	$	909	$	(2,978	)	$	144,028

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 201 8
Obligations of state and political subdivisions	$	4,024	$	24	$	—	$	4,048
Total held-to-maturity securities	$	4,024	$	24	$	—	$	4,048

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

	Three Months Ended September 30,
	2018		2017
Proceeds from sales	$	2,573	$	1,586
Gross realized gains		593		39
Gross realized losses		6		1

The income tax provision related to the net realized gains amounted to

$124

for the

three

months ended

September 30, 2018.

The income tax provision related to the net realized gains amounted to

$13

for the

three

months ended

September 30, 2017.

The amortized cost and fair values of debt securities at

September 30, 2018,

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 are shown separately.

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	1,824	$	1,827
Due after one year through five years		19,435		19,201
Due after five years through ten years		27,499		27,112
Due after ten years		23,357		22,757
Total		72,115		70,897
U.S. Government-sponsored mortgage-backed and related securities		69,102		66,771
Total available-for-sale securities	$	141,217	$	137,668
Held-to-Maturity
Due after five years through ten years		527		521
Due after ten years		3,402		3,444
Total held-to-maturity securities	$	3,929	$	3,965

The following table summarizes the securities with unrealized losses at

September 30, 2018

and

June 30, 2018,

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 , 2018
Obligations of US government-sponsored entities and agencies	$	12,248	$	(282	)	$	3,591	$	(199	)	$	15,839	$	(481	)
Obligations of states and political subdivisions		29,778		(467	)		9,744		(507	)		39,522		(974	)
Mortgage-backed securities – residential		23,084		(434	)		36,843		(1,650	)		59,927		(2,084	)
Mortgage-backed securities – commercial		—		—			1,408		(17	)		1,408		(17	)
Collateralized mortgage obligations – residential		900		(1	)		4,536		(229	)		5,436		(230	)
Total temporarily impaired	$	66,010	$	(1,184	)	$	56,122	$	(2,602	)	$	122,132	$	(3,786	)

	Less than 12 Months					12 Months or more				Total
Held-to-maturity	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
September 30, 2018
Obligations of states and political subdivisions	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)
Total temporarily impaired	$	3,053	$	(9	)	$	—	$	—	$	3,053	$	(9	)

	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 8
Obligations of US government-sponsored entities and agencies	$	12,400	$	(224	)	$	2,747	$	(148	)	$	15,147	$	(372	)
Obligations of states and political subdivisions		26,775		(369	)		7,975		(344	)		34,750		(713	)
Mortgage-backed securities – residential		31,038		(581	)		29,716		(1,079	)		60,754		(1,660	)
Mortgage-backed securities – commercial		1,415		(17	)		—		—			1,415		(17	)
Collateralized mortgage obligation – residential		—		—			4,821		(216	)		4,821		(216	)
Total temporarily impaired	$	71,628	$	(1,191	)	$	45,259	$	(1,787	)	$	116,887	$	(2,978	)

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, 2018

have

not

been recognized into income because the decline in fair value is

not

attributed to credit quality and 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.