Investment Securities

3 Months Ended

Sep. 30, 2014

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The amortized cost and estimated fair value of the Company's investment securities, with gross unrealized gains and losses, follows:

	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available for Sale
Debt securities:
Corporate bonds	$	3,023	$	52	$	—		$	3,075
Residential mortgage-backed securities:
Agency	126,711		1,495		(1,743		)	126,463
Non-agency	1,607		17		(5		)	1,619
Total debt securities	131,341		1,564		(1,748		)	131,157
Marketable equity securities	51		27		—			78
Total securities available for sale	$	131,392	$	1,591	$	(1,748	)	$	131,235
Held to Maturity
Municipal bonds	$	10,615	$	—	$	—		$	10,615
Total securities held to maturity	$	10,615	$	—	$	—		$	10,615

	June 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(In Thousands)
Available for Sale
Debt securities:
Corporate bonds	$	3,026	$	60	$	—		$	3,086
Residential mortgage-backed securities:
Agency	128,938		1,629		(1,494		)	129,073
Non-agency	1,688		15		(5		)	1,698
Total debt securities	133,652		1,704		(1,499		)	133,857
Marketable equity securities	51		28		—			79
Total securities available for sale	$	133,703	$	1,732	$	(1,499	)	$	133,936
Held to Maturity
Municipal bonds	$	9,302	$	—	$	—		$	9,302
Total securities held to maturity	$	9,302	$	—	$	—		$	9,302

Residential mortgage-backed agency securities are mortgage-backed securities that have been issued by the federal government or its agencies or government-sponsored enterprises. Residential mortgage-backed non-agency securities are mortgage-backed securities that have been issued by private mortgage originators.

The amortized cost and estimated fair value of debt securities by contractual maturity at September 30, 2014 are set forth below. Expected maturities will differ from contractual maturities because the issuer may have the right to call or prepay obligations with or without call or prepayment penalties.

	Securities Available for Sale				Securities Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In Thousands)
Within 1 year	$	999	$	1,006	$	8,027	$	8,027
After 1 year but within 5 years	2,024		2,069		2,588		2,588
Total bonds, obligations, and municipals	3,023		3,075		10,615		10,615
Residential mortgage-backed securities:
Agency	126,711		126,463		—		—
Non-agency	1,607		1,619		—		—
Total debt securities	$	131,341	$	131,157	$	10,615	$	10,615

Information pertaining to securities with gross unrealized losses at September 30, 2014 and June 30, 2014, aggregated by investment category and length of time that individual securities have been in a continuous loss position, are as follows:

	Less Than Twelve Months				Over Twelve Months				Total
	Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses		Fair Value
	(In Thousands)
September 30, 2014:
Residential mortgage-backed securities:
Agency	$	115	$	32,523	$	1,628	$	50,022	$	1,743	$	82,545
Non-agency	1		135		4		218		5		353
	$	116	$	32,658	$	1,632	$	50,240	$	1,748	$	82,898
June 30, 2014:
Corporate bonds	$	—			$	—	$	—	$	—	$	—
Residential mortgage-backed securities:
Agency	$	38	$	7,357	$	1,456	$	51,094	$	1,494	$	58,451
Non-agency	1		143		4		234		5		377
	$	39	$	7,500	$	1,460	$	51,328	$	1,499	$	58,828

Management conducts, at least on a quarterly basis, a review of our investment securities to determine if the value of any security has declined below its cost or amortized cost and whether such decline represents other-than-temporary impairment (“OTTI”). There was no impairment charge recognized for the three months ended September 30, 2014 and 2013.

 At September 30, 2014, 59 debt securities had unrealized losses with aggregate depreciation of 2.1% from the Company's amortized cost basis. In analyzing an issuer's financial condition, management considers whether the securities are issued by the federal government, its agencies or government-sponsored enterprises, whether downgrades by bond rating agencies have occurred, and industry analyst's reports. The unrealized losses in residential mortgage-backed securities were primarily caused by interest rate changes. As management has not decided to sell these securities, nor is it likely that the Company will be required to sell these securities, no declines are deemed to be other than temporary. At September 30, 2014, eight securities issued by private mortgage originators had unrealized losses. Such securities had an amortized cost of $358,000 and a fair value of $353,000. All of these investments are “Senior” Class tranches and have underlying credit enhancement. These securities were originated in the period 2002-2005 and are performing in accordance with contractual terms. Management estimates the loss projections for each security by evaluating the industry rating, amount of delinquencies, amount of foreclosure, amount of other real estate owned, average credit scores, average amortized loan to value and credit enhancement. Based on this review, management determined that no OTTI existed as of September 30, 2014.