HVBC 2016 Annual Report

HV Bancorp, Inc. and Subsidiary Notes to the Consolidated Financial Statements Years Ended June 30, 2017 and 2016 66 At June 30, 2017 and 2016, the investment portfolio included thirty-five and thirty-two collateralized mortgage obligations (CMOs) with total market values of $12.6 and $9.8 million at June 30, 2017 and 2016. Of these securities, twenty-eight and nineteen were in an unrealized loss position as of June 30, 2017 and June 30, 2016, respectively. The CMO portfolio is comprised of 100% agency (FHLMC, FNMA and GNMA) investment grade bonds. As of June 30, 2017 and 2016, management found no evidence of OTTI on any of the CMOs 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 fifteen and nineteen Mortgage backed securities (MBS) with a total market value of $4.4 million and $7.0 million at the end of each period, respectively. Of these securities, twelve and four were in an unrealized loss position as of June 30, 2017 and 2016, respectively. The MBS portfolio is comprised of 100% agency (FHLMC, FNMA and GNMA) investment grade bonds. As of June 30, 2017 and June 30, 2016, management found no evidence of OTTI on any of the MBS 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 thirty and twenty-four municipal securities with a total market value of $13.4 million and $9.5 million, respectively. Of these securities, thirteen and one were in an unrealized loss position as of June 30, 2017 and June 30, 2016, respectively. The Company’s municipal portfolio issuers are located in Pennsylvania and were purchased and, as of June 30, 2017 and June 30, 2016, continue to maintain investment grade ratings. Each of the municipal securities is reviewed quarterly for impairment. This includes research on each issuer to ensure the financial stability of the municipal entity. As of June 30, 2017 and June 30, 2016, management found no evidence of OTTI on any of the Municipal 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-six and eleven Bank CDs with a total market value of $6.7 million and $3.0 million at the end of each period, respectively. Of these securities, twelve and three were in an unrealized loss position as of June 30, 2017 and 2016, respectively. The Bank CDs are fully insured by the FDIC. As of June 30, 2017 and June 30, 2016, management found no evidence of OTTI on any of the Bank CDs held in the investment securities portfolio and The Company has no intentions to sell the securities before a recovery of the cost has occurred.