INVESTMENT SECURITIES

3 Months Ended

Sep. 30, 2013

Investments, Debt and Equity Securities [Abstract]

Investment Securities Disclosure [Text Block]

8.          INVESTMENT SECURITIES

Investment securities available for sale at September 30, 2013 consisted of the following:

	Amortized  Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses		Estimated  Market  Value
Mortgage-backed securities	$	178,533	$	213	$	3,485	$	175,261
Municipal bonds		34,351		201		1,542		33,010
Other equity securities		210		—		46		164
	$	213,094	$	414	$	5,073	$	208,435

Investment securities held to maturity at September 30, 2013 consisted of the following:

	Amortized  Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses		Estimated  Market  Value
Municipal Bonds	$	393	$	—	$	—	$	393

Investment securities available for sale at June 30, 2013 consisted of the following:

	Amortized  Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses		Estimated  Market  Value
Mortgage-backed securities	$	172,478	$	181	$	2,542	$	170,117
Municipal bonds		32,894		239		1,282		31,851
Other equity securities		210		—		48		162
	$	205,582	$	420	$	3,872	$	202,130

Investment securities held to maturity at June 30, 2013 consisted of the following:

	Amortized  Cost		Gross  Unrealized  Gains		Gross  Unrealized  Losses		Estimated  Market  Value
Municipal Bonds	$	417	$	—	$	—	$	417

The mortgage-backed securities, callable bonds and municipal bonds available for sale have the following maturities at September 30, 2013:

	Amortized  cost		Estimated  market value
Due or callable in one year or less	$	-	$	-
Due or callable in 1 - 5 years		136,834		134,839
Due or callable in 5 - 10 years		66,609		64,641
Due or callable in greater than 10 years		9,441		8,791
Total debt securities	$	212,884	$	208,271

All other securities available for sale at September 30, 2013 are saleable within one year. The Bank held $393,000 and $417,000 in investment securities that are being held to maturity at September 30, 2013 and June 30, 2013, respectively. The investment securities held to maturity have annual returns of principal and will be fully matured between 2014 and 2019.

The expected returns of principal of investments held to maturity are as follows as of September 30, 2013

(dollars in thousands):

October 1, 2013 through June 30, 2014	$	25
2015		117
2016		56
2017		61
2018		65
2018 and thereafter		69
	$	393

Gross proceeds on the sale of investment and mortgage-backed securities were $45,000 and $-0- for the three-month periods ended September 30, 2013 and 2012, respectively. There were no gross realized gains or losses for the three-month periods ended September 30, 2013 and 2012.

The table below indicates the length of time individual investment securities and mortgage-backed securities have been in a continuous loss position at September 30, 2013:

	Less than 12 months				12 months or longer				Total
	Fair Value		Unrealized  Losses		Fair Value		Unrealized  Losses		Fair Value		Unrealized  Losses
	(In thousands)
Mortgage-backed securities	$	130,399	$	3,150	$	18,939	$	335	$	149,338	$	3,485
Municipal bonds		26,503		1,541		238		1		26,741		1,542
Other equity securities		-		-		164		46		164		46
	$	156,902	$	4,691	$	19,341	$	382	$	176,243	$	5,073
Number of investments		93				8				101

Securities available for sale are reviewed for possible other-than-temporary impairment on a quarterly basis. During this review, management considers the severity and duration of the unrealized losses as well as its intent and ability to hold the securities until recovery, taking into account balance sheet management strategies and its market view and outlook. Management also assesses the nature of the unrealized losses taking into consideration factors such as changes in risk-free interest rates, general credit spread widening, market supply and demand, creditworthiness of the issuer or any credit enhancement providers, and the quality of the underlying collateral. Management does not intend to sell these securities in the foreseeable future, and does not believe that it is more likely than not that the Bank will be required to sell a security in an unrealized loss position prior to a recovery in its value. The decline in market value is due to changes in market interest rates. The fair values are expected to recover as the securities approach maturity dates.