INVESTMENT SECURITIES

6 Months Ended

Dec. 31, 2016

Investments, Debt and Equity 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)
December 31, 2016
AVAILABLE FOR SALE
Corporate debt securities	$		98,415	$		67	$		(61	)	$		98,421
Foreign debt securities 1			7,028			-			(1	)			7,027
Obligations of states and political subdivisions			1,330			-			(24	)			1,306
Total	$		106,773	$		67	$		(86	)	$		106,754
		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value
		(Dollars in Thousands)
December 31, 2016
HELD TO MATURITY
U.S. government agency securities	$		625	$		-	$		(6	)	$		619
Corporate debt securities			2,703			148			-				2,851
Obligations of states and political subdivisions			5,356			35			-				5,391
Total	$		8,684	$		183	$		(6	)	$		8,861
		Amortized Cost			Gross Unrealized Gains			Gross Unrealized Losses				Fair Value
		(Dollars in Thousands)
June 30, 2016
AVAILABLE FOR SALE
Corporate debt securities	$		96,742	$		150	$		(40	)	$		96,852
Foreign debt securities 1			8,780			5			(2	)			8,783
Obligations of states and political subdivisions			2,034			7			-				2,041
Total	$		107,556	$		162	$		(42	)	$		107,676

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

		Amortized     Cost			Gross     Unrealized     Gains			Gross     Unrealized     Losses			Fair     Value
		(Dollars in Thousands)
June 30, 2016
HELD TO MATURITY
U.S. government agency securities	$		625	$		5	$		-	$		630
Corporate debt securities			3,543			228			-			3,771
Obligations of states and political subdivisions 2			5,355			234			-			5,589
Total	$		9,523	$		467	$		-	$		9,990

There were no sales of investment securities for the three and six months ended December 31, 2016.

During the three and six months ended December 31, 2015, the Company recorded gross realized investment securities gains of $21 thousand. Proceeds from sales of investment during the three and six months ended December 31, 2015 were $1.0 million.

The amortized cost and fair values of debt securities at December 31, 2016, 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 five years			Due after five through ten years			Due after ten years			Total
		(Dollars in Thousands)
AVAILABLE FOR SALE
Amortized cost	$		70,872	$		33,897	$		2,004	$		-	$		106,773
Fair value			70,862			33,861			2,031			-			106,754
HELD TO MATURITY
Amortized cost	$		2,032	$		3,822	$		2,205	$		625	$		8,684
Fair value			2,073			3,948			2,221			619			8,861

At December 31, 2016, investment securities with amortized costs of $126.125 million, and fair values of $127.063 million were pledged to secure borrowings with the Federal Home Loan Bank (“FHLB”). Of the securities pledged, $5.599 million of amortized cost was excess collateral at the FHLB. Excess collateral is maintained to support future borrowings and may be withdrawn by the Company at any time.

As of December 31, 2016, investment securities with amortized costs of $3.053 million and fair values of $3.195 million were pledged to secure future borrowings with the Federal Reserve Bank of Cleveland (FRBC). Since the Company had no FRBC borrowings outstanding on December 31, 2016, all FRBC collateral pledges may be withdrawn by the Company at any time.

As of December 31, 2016, no investment securities were pledged to secure broker repurchase agreements.

²  U.S. dollar denominated investment-grade corporate bonds of large foreign corporate issuers.