INVESTMENT SECURITIES

3 Months Ended

Sep. 30, 2012

INVESTMENT SECURITIES [Abstract]

INVESTMENT SECURITIES

5. INVESTMENT SECURITIES

The amortized cost and fair values of investments are as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
September 30, 2012
AVAILABLE FOR SALE
Corporate debt securities	$	76,566	$	337	$	(8	)	$	76,895
Foreign debt securities 1		4,468		19		-			4,487
Total	$	81,034	$	356	$	(8	)	$	81,382

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
September 30, 2012
HELD TO MATURITY
U.S. government agency securities	$	55,344	$	143	$	(1	)	$	55,486
Corporate debt securities		20,535		1,376		-			21,911
Foreign debt securities 1		2,001		74		-			2,075
Total	$	77,880	$	1,593	$	(1	)	$	79,472

¹ U.S. dollar-denominated investment-grade corporate bonds of large foreign issuers.

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
June 30, 2012
AVAILABLE FOR SALE
Corporate debt securities	$	55,965	$	116	$	(129	)	$	55,952
Foreign debt securities 1		1,671		-		(3	)		1,668
Total	$	57,636	$	116	$	(132	)	$	57,620

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in Thousands)
June 30, 2012
HELD TO MATURITY
U.S. government agency securities	$	57,588	$	131	$	(4	)	$	57,715
Corporate debt securities		22,810		1,442		-			24,252
Foreign debt securities 1		2,002		90		-			2,092
Total	$	82,400	$	1,663	$	(4	)	$	84,059

During the three months ended September 30, 2012, and 2011, the Company recorded gross realized investment security gains of $8 thousand, and $0, respectively. Proceeds from sales of investment securities during the three months ended September 30, 2012 and 2011, were $1.891 million and $0, respectively.

The amortized cost and fair values of debt securities at September 30, 2012, by contractual maturity, are shown below. Expected maturities may differ from the contractual maturities because issuers may have the right to call securities prior to their final maturities.

	Due in one year or less		Due after one through two years		Due after two through three years		Due after three through five years		Due after five through ten years		Due after ten years		Total
	(Dollars in Thousands)
AVAILABLE FOR SALE
Amortized cost	$	25,007	$	37,110	$	17,092	$	1,825	$	-	$	-	$	81,034
Fair value		25,096		37,280		17,172		1,834		-		-		81,382
HELD TO MATURITY
Amortized cost	$	8,766	$	8,229	$	998	$	2,100	$	57,787	$	-	$	77,880
Fair value		8,946		8,635		1,125		2,326		58,440		-		79,472

At September 30, 2012, investment securities with amortized costs of $50.308 million and fair values of $50.434 million were pledged to secure public deposits, and borrowings with the Federal Home Loan Bank. Of the securities pledged, $6.554 million of fair value was excess collateral. At September 30, 2011, investment securities with amortized costs of $378 thousand and fair values of $375 thousand were pledged to secure public deposits, and borrowings with the Federal Home Loan Bank. Of the securities pledged, there was no fair value of excess collateral. Excess collateral is maintained to support future borrowings and may be withdrawn by the Company at any time.

¹ U.S. dollar-denominated investment-grade corporate bonds of large foreign issuers.