HVBC 2016 Annual Report

HV Bancorp, Inc. and Subsidiary Notes to the Consolidated Financial Statements Years Ended June 30, 2017 and 2016 65 The following tables summarize the unrealized loss positions of securities available-for-sale and held-to- maturity at June 30, 2017 and 2016: 2017 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale: U.S. Governmental securities $ 1,115 $ (16) $ — $ — $ 1,115 $ (16) Corporate notes 2,045 (6) 2,492 (58) 4,537 (64) Collateralized mortgage obligations 2,218 (40) 4,278 (120) 6,496 (160) Mortgage-backed securities 3,297 (46) 1,133 (39) 4,430 (85) Municipal securities 2,214 (9) 238 (2) 2,452 (11) Bank CDs 2,736 (13) 243 (7) 2,979 (20) $ 13,625 $ (130) $ 8,384 $ (226) $ 22,009 $ (356) Held-to-maturity: Municipal securities $ 3,227 $ (11) $ 501 $ (2) $ 3,728 $ (13) $ 3,227 $ (11) $ 501 $ (2) $ 3,728 $ (13) 2016 Less than 12 Months 12 Months or Longer Total Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in thousands) Value Loss Value Loss Value Loss Available-for-sale: U.S. Governmental securities $ — $ — $ — $ — $ — $ — Corporate notes 1,000 (13) 3,677 (123) 4,677 (136) Collateralized mortgage obligations — — 5,792 (93) 5,792 (93) Mortgage-backed securities — — 1,885 (15) 1,885 (15) Municipal securities — — — — — — Bank CDs 249 (1) 493 (7) 742 (8) $ 1,249 $ (14) $ 11,847 $ (238) $ 13,096 $ (252) Held-to-maturity: Municipal securities $ 506 $ (1) $ — $ — $ 506 $ (1) $ 506 $ (1) $ — $ — $ 506 $ (1) At June 30, 2017 and 2016, the investment portfolio included ten and five U.S. Government securities, with total market values of $4.3 million and $1.5 million, respectively. Of these securities, three and zero were in an unrealized loss position as of June 30, 2017 and June 30, 2016, respectively. These securities are zero risk weighted for capital purposes and are guaranteed for repayment of principal and interest. As of June 30, 2017 and 2016, management found no evidence of OTTI on any of the U.S. Governmental securities held in the investment securities portfolio. The Company has the ability to hold to maturity and has no intentions to sell the securities before a recovery of the cost has occurred. At June 30, 2017 and 2016, the investment portfolio included twenty-four and sixteen corporate notes with total market values of $13.2 million and $8.3 million, respectively. Of these securities, nine were in an unrealized loss position as of June 30, 2017 and June 30, 2016. At the time of purchase and as of June 30, 2017 and June 30, 2016, these bonds continue to maintain investment grade ratings. As of June 30, 2017 and June 30, 2016, management found no evidence of OTTI on any of the Corporate notes held in the investment securities portfolio. The Company has the ability to hold to maturity and has no intentions to sell the securities before a recovery of the cost has occurred.