INVESTMENT AND MORTGAGE-BACKED SECURITIES

12 Months Ended

Jun. 30, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities Disclosure [Text Block]

NOTE 2 – INVESTMENT AND MORTGAGE-BACKED SECURITIES

Investment securities available for sale at June 30, 2015 consist of the following:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(In thousands)
Mortgage-backed securities	$	109,793	$	170	$	825	$	109,138
Municipal Bonds		37,631		438		450		37,619
U.S. Government Agency Bonds		2,000		15		—		2,015
Small Business Admin		8,224		18		29		8,213
Collateralized Mortgage Obligations		13,032		9		199		12,842
Other equity securities		210		—		26		184
Total	$	170,890	$	650	$	1,529	$	170,011

Investment securities held to maturity at June 30, 2015 consist of the following:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(In thousands)
Municipal bonds	$	40,653	$	52	$	660	$	40,045

Investment securities available for sale at June 30, 2014 consist of the following:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(In thousands)
Mortgage-backed securities	$	180,563	$	501	$	2,047	$	179,017
Municipal bonds		38,000		479		664		37,815
U.S. Government Agency Bonds		2,000		—		8		1,992
Other equity securities		210		—		52		158
Total	$	220,773	$	980	$	2,771	$	218,982

Investment securities held to maturity at June 30, 2014 consist of the following:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
	(In thousands)
Municipal bonds	$	337	$	14	$	—	$	351

Gross proceeds on the sale of investment and mortgage-backed securities were $49,872,000 and $90,000 for the years ended June 30, 2015 and 2014, respectively. Gross realized gains for the years ended June 30, 2015 and 2014 were $396,000 and $-0-, respectively. Gross realized losses for the years ended June 30, 2015 and 2014 were $828,000 and $-0-, respectively.

The amount of investment securities pledged as security for advances from the FHLB totaled $97.3 million and $138.3 million as of June 30, 2015 and 2014, respectively. There were no pledged securities for municipal deposits as of June 30, 2015 and June 30, 2014. The Bank was notified on June 20, 2015 that it would not be required to pledge securities for municipal deposits during the September 2015 quarter.

The mortgage-backed securities, municipal bonds and U.S. government agency bonds available for sale have the following maturities at June 30, 2015:

	Amortized		Estimated
	cost		market value
	(In thousands)
Due or callable in one year or less	$	175	$	175
Due or callable in 1 - 5 years		112,980		112,272
Due or callable in 5 - 10 years		47,194		47,109
Due or callable in greater than 10 years		10,331		10,271
Total debt securities	$	170,680	$	169,827

All other securities available for sale at June 30, 2015 are saleable within one year. The Company held $40,653,000 and $337,000 in investment securities that are being held to maturity at June 30, 2015 and 2014, respectively. The investment securities held to maturity have annual returns of principal and will be fully matured between 2016 and 2036.

The expected returns of principal of investments held to maturity are as follows as of June 30, 2015 (in thousands):

2016		56
2017		60
2018		64
2019		69
2020		—
Thereafter		40,403
	$	40,653

The table below indicates the length of time individual investment securities and mortgage-backed securities have been in a continuous loss position at June 30, 2015 and 2014:

	Less than 12 Months				12 Months or Longer				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
	(Dollars in thousands)
June 30, 2015
Municipal Bonds	$	44,626	$	1,000	$	2,910	$	110	$	47,536	$	1,110
Mortgage-backed securities		38,317		194		40,120		631		78,437		825
U.S. Government Agency Bonds		—		—		—		—		—		—
Small Business Admin		4,959		29						4,959		29
Collateralized Mortgage Obligations		11,658		199						11,658		199
Other equity securities		—		—		184		26		184		26
	$	99,560	$	1,422	$	43,214	$	767	$	142,774	$	2,189
Number of investments		121				21				142
June 30, 2014
Municipal bonds	$	4,844	$	58	$	17,065	$	606	$	21,909	$	664
Mortgage-backed securities		22,709		98		98,364		1,949		121,073		2,047
U.S. Government agency bonds		1,992		8		—		—		1,992		8
Other equity securities		—		—		158		52		158		52
	$	29,545	$	164	$	115,587	$	2,607	$	145,132	$	2,771
Number of investments		18				70				88

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.

The detail of interest and dividends on investment securities is as follows:

	For the year ended
	June 30,
	2015		2014
	(In thousands)
Taxable interest income	$	2,226	$	2,130
Nontaxable interest income		1,414		808
Dividends		254		280
Total	$	3,894	$	3,218

Mortgage-backed securities available for sale at June 30, 2015 consist of the following:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(In thousands)
FNMA	$	87,934	$	125	$	473	$	87,586
FHLMC		11,855		45		76		11,824
GNMA		10,004		—		276		9,728
	$	109,793	$	170	$	825	$	109,138

Mortgage-backed securities available for sale at June 30, 2014 consist of the following:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Market
	Cost		Gains		Losses		Value
			(In thousands)
FNMA	$	102,026	$	256	$	551	$	101,731
FHLMC		22,176		200		159		22,217
GNMA		56,361		45		1,337		55,069
	$	180,563	$	501	$	2,047	$	179,017