NOTE

—

SECURITIES

The following table summarizes the amortized cost and fair value of securities available-for-sale and held-to-maturity at

June 30, 2021

and

2020

and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive income (loss) and gross unrecognized gains and losses:

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2021
Obligations of U.S. government-sponsored entities and agencies	$	14,746	$	301	$	(14	)	$	15,033
Obligations of state and political subdivisions		73,013		3,561		(75	)		76,499
U.S. Government-sponsored mortgage-backed securities - residential		90,065		1,136		(684	)		90,517
U.S. Government-sponsored mortgage-backed securities - commercial		8,641		204		—			8,845
U.S. Government-sponsored collateralized mortgage obligations – residential		16,302		129		(57	)		16,374
Other debt securities		500		—		(8	)		492
Total available-for-sale securities	$	203,267	$	5,331	$	(838	)	$	207,760

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2021
Obligations of state and political subdivisions	$	7,996	$	356	$	—	$	8,352

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2020
Obligations of U.S. Treasury	$	1,248	$	8	$	—		$	1,256
Obligations of U.S. government-sponsored entities and agencies		10,133		399		—			10,532
Obligations of state and political subdivisions		60,343		3,149		—			63,492
U.S. Government-sponsored mortgage-backed securities - residential		48,645		1,515		(4	)		50,156
U.S. Government-sponsored mortgage-backed securities – commercial		8,444		55		(2	)		8,497
U.S. Government-sponsored collateralized mortgage obligations – residential		9,712		285		(12	)		9,985
Total available-for-sale securities	$	138,525	$	5,411	$	(18	)	$	143,918

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses		Fair Value
June 30, 2020
Obligations of state and political subdivisions	$	3,541	$	327	$	—	$	3,868

Proceeds from sales of available-for-sale securities during fiscal year

2021

and fiscal year

2020

were as follows:

	2021			2020
Proceeds from sales	$	5,545		$	18,421
Gross realized gains		44			355
Gross realized losses		(30	)		—

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

in fiscal year

2021

and

$74

in fiscal year

2020.

The amortized cost and fair values of debt securities at

June

30,

2021

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 and collateralized mortgage obligations are shown separately.

Available-for-sale	Amortized Cost		Fair Value
Due in one year or less	$	5,642	$	5,712
Due after one year through five years		12,346		12,800
Due after five years through ten years		20,295		20,824
Due after ten years		49,976		52,688
Total		88,259		92,024
U.S. Government-sponsored mortgage-backed and related securities		115,008		115,736
Total	$	203,267	$	207,760

Held-to-maturity	Amortized Cost		Fair Value
Due after one year through five years	$	294	$	309
Due after five years through ten years		5,367		5,547
Due after ten years		2,335		2,496
Total	$	7,996	$	8,352

Securities with a carrying value of approximately

$96,970

and

$69,048

were pledged at

June 30, 2021

and

2020,

respectively, to secure public deposits and commitments as required or permitted by law. At

June 30, 2021

and

2020,

there were

holdings of securities of any

one

issuer, other than obligations of U.S. government-sponsored entities and 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, 2021

and

2020,

aggregated by investment category and length of time that the 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

June 30, 2021
Obligations of U.S. government-sponsored entities and agencies	$	2,003	$	(14	)	$	—	$	—		$	2,003	$	(14	)
Obligations of state and political subdivisions		7,398		(75	)		—		—			7,398		(75	)
Mortgage-backed securities – residential		42,378		(684	)		—		—			42,378		(684	)
Collateralized mortgage obligations - residential		7,707		(56	)		552		(1	)		8,259		(57	)
Other		492		(8	)		—		—			492		(8	)
Total temporarily impaired	$	59,978	$	(837	)	$	552	$	(1	)	$	60,530	$	(838	)

	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, 2020
Mortgage-backed securities – residential	$	—	$	—		$	625	$	(4	)	$	625	$	(4	)
Mortgage-backed securities – commercial		1,806		(2	)		—		—			1,806		(2	)
Collateralized mortgage obligations – residential		1,700		(12	)		—		—			1,700		(12	)
Total temporarily impaired	$	3,506	$	(14	)	$	625	$	(4	)	$	4,131	$	(18	)

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: (

) the length of time and the extent to which the fair value has been less than cost, (

) the financial condition and near-term prospects of the issuer, (

) whether the market decline was affected by macroeconomic conditions, and (

) 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.

As of

June 30, 2021,

the Corporation's securities portfolio consisted of

312

available-for-sale and

four

held-to-maturity securities. There were

available-for-sale securities in an unrealized loss position at

June 30, 2021,

one

of which was in a continuous loss position for

twelve

or more months. There were

held-to-maturity securities in an unrealized loss position at

June 30, 2021.

The unrealized losses within the available-for-sale securities portfolio in the

2021

fiscal year was primarily attributed to a change in rates. 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. Also, management monitors the financial condition of the individual municipal securities 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 OTTI related to these securities at

June 30, 2021.

Also, there was

OTTI recognized at

June 30, 2020.

As of

June 30, 2021,

the Corporation owned equity securities with an amortized cost of

$400.

The following table presents the net unrealized gains and losses on equity securities recognized in earnings for the

twelve

months ended

June 30, 2021

and

2020.

There were

realized gains or losses on the sale of equity securities during the periods presented. The Corporation did

not

own any equity securities as of

June 30, 2020.

		2021				2020
Unrealized gains recognized on equity securities held at the end of the period		$	24			$	—