FEDERAL HOME LOAN BANK (FHLB) ADVANCES

6 Months Ended

Dec. 31, 2016

Federal Home Loan Bank, Advances, General Debt Obligations, Disclosures [Abstract]

FEDERAL HOME LOAN BANK (FHLB) ADVANCES

10. FEDERAL HOME LOAN BANK (FHLB) ADVANCES

The following table presents contractual maturities of FHLB long-term advances as of December 31, 2016 and June 30, 2016.

	Maturity range				Weighted- average		Stated interest rate range							December 31,			June 30,
Description	from		to		interest rate 6		from			to				2016			2016
														(Dollars in Thousands)
Convertible		07/27/17		07/27/17		4.26%		4.26	%		4.26	%	$		10,000	$		10,000
Adjustable		08/11/17		09/01/17		0.81%		0.79	%		0.82	%			6,109			6,109
Total													$		16,109	$		16,109

⁶  As of December 31, 2016.

Maturities of FHLB long-term advances at December 31, 2016, are summarized as follows:

Maturing During Fiscal Year Ended                      June 30:		Amount	Weighted- Average Interest         Rate
		(Dollars in Thousands)
2017	$	-		-
2018		16,109		2.95	%
2019		-		-
2020		-		-
2021 and thereafter		-		-
Total	$	16,109		2.95	%

The terms of the convertible advance reset to the three-month London Interbank Offered Rate (“LIBOR”) and have various spreads and call dates of three months. The FHLB has the right to convert from a fixed rate to a predetermined floating rate on its conversion date or quarterly thereafter. Should the advance be converted, the Company has the right to pay off the advance without penalty. The adjustable rate advances adjust either monthly or quarterly, based on the one-month or three-month LIBOR index, and have various spreads to the LIBOR index. The spread to the applicable LIBOR index range is 0.13%. The adjustable rate advances are not convertible or callable. The FHLB advances are secured by the Company’s FHLB stock, mortgage-backed and investment securities, and loans, and are subject to substantial prepayment penalties.

The Company also utilized revolving and short-term FHLB advances. Short-term FHLB advances generally mature within 90 days, while revolving FHLB advances may be repaid by the Company without penalty. The following table presents information regarding such advances as of December 31, 2016 and June 30, 2016:

		December 31,         2016				June 30,         2016
		(Dollars in Thousands)
FHLB revolving and short-term advances:
Ending balance	$		146,074		$		144,027
Average balance			141,404				47,413
Maximum month-end balance			148,216				144,027
Average interest rate			0.59	%			0.50	%
Weighted-average rate			0.75	%			0.54	%

At December 31, 2016, the Company had remaining borrowing capacity with the FHLB of approximately $5.5 million.

The FHLB advances are secured by the Company’s FHLB stock, loans, and mortgage-backed and investment securities held in safekeeping at the FHLB. FHLB advances are subject to substantial prepayment penalties.