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Securities

6 Months Ended

Dec. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Securities

SECURITIES

The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated:

			December 31, 2022
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
			(In Thousands)
Available for sale:
Debt securities:
Asset-backed securities			$	161,509					$	—					$	2,886					$	—					$	158,623
Collateralized loan obligations			393,027						31						8,999						—						384,059
Corporate bonds			159,769						3						14,817						—						144,955
Total debt securities			714,305						34						26,702						—						687,637
Mortgage-backed securities:
Residential pass-through securities (1)			557,294						8						107,146						—						450,156
Commercial pass-through securities (1)			165,596						—						17,035						—						148,561
Total mortgage-backed securities			722,890						8						124,181						—						598,717
Total securities available for sale			$	1,437,195					$	42					$	150,883					$	—					$	1,286,354

___________________________

(1)Government-sponsored enterprises.

			June 30, 2022
			Amortized Cost						Gross Unrealized Gains						Gross Unrealized Losses						Allowance for Credit Losses						Fair Value
			(In Thousands)
Available for sale:
Debt securities:
Obligations of state and political subdivisions			$	28,485					$	39					$	89					$	—					$	28,435
Asset-backed securities			169,506						—						2,949						—						166,557
Collateralized loan obligations			315,693						—						7,880						—						307,813
Corporate bonds			159,871						175						6,649						—						153,397
Total debt securities			673,555						214						17,567						—						656,202
Mortgage-backed securities:
Collateralized mortgage obligations (1)			7,451						—						329						—						7,122
Residential pass-through securities (1)			595,337						45						80,624						—						514,758
Commercial pass-through securities (1)			185,781						1						19,771						—						166,011
Total mortgage-backed securities			788,569						46						100,724						—						687,891
Total securities available for sale			$	1,462,124					$	260					$	118,291					$	—					$	1,344,093

___________________________

(1)Government-sponsored enterprises.

			December 31, 2022
			Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Allowance for Credit Losses						Fair Value
			(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions			$	18,806					$	—					$	285					$	—					$	18,521
Total debt securities			18,806						—						285						—						18,521
Mortgage-backed securities:
Residential pass-through securities (1)			122,715						—						12,898						—						109,817
Commercial pass-through securities (1)			12,265						—						2,210						—						10,055
Total mortgage-backed securities			134,980						—						15,108						—						119,872
Total securities held to maturity			$	153,786					$	—					$	15,393					$	—					$	138,393

___________________________

(1)Government-sponsored enterprises.

			June 30, 2022
			Amortized Cost						Gross Unrecognized Gains						Gross Unrecognized Losses						Allowance for Credit Losses						Fair Value
			(In Thousands)
Held to maturity:
Debt securities:
Obligations of state and political subdivisions			$	21,159					$	44					$	78					$	—					$	21,125
Total debt securities			21,159						44						78						—						21,125
Mortgage-backed securities:
Residential pass-through securities (1)			84,851						—						8,587						—						76,264
Commercial pass-through securities (1)			12,281						—						1,552						—						10,729
Total mortgage-backed securities			97,132						—						10,139						—						86,993
Total securities held to maturity			$	118,291					$	44					$	10,217					$	—					$	108,118

___________________________

(1)Government-sponsored enterprises.

Excluding the balances of mortgage-backed securities, the following tables present the amortized cost and estimated fair values of debt securities available for sale and held to maturity, by contractual maturity, at December 31, 2022:

			December 31, 2022
			Amortized Cost						Fair Value
			(In Thousands)
Available for sale debt securities:
Due in one year or less			$	—					$	—
Due after one year through five years			11,865						11,783
Due after five years through ten years			342,467						326,847
Due after ten years			359,973						349,007
Total			$	714,305					$	687,637

			December 31, 2022
			Amortized Cost						Fair Value
			(In Thousands)
Held to maturity debt securities:
Due in one year or less			$	4,160					$	4,143
Due after one year through five years			12,946						12,713
Due after five years through ten years			1,700						1,665
Due after ten years			—						—
Total			$	18,806					$	18,521

Sales of securities available for sale were as follows for the periods presented below:

			Three Months Ended December 31,												Six Months Ended December 31,
			2022						2021						2022						2021
			(In Thousands)
Available for sale securities sold:
Proceeds from sales of securities			$	105,199					$	—					$	105,199					$	—
Gross realized gains			$	—					$	—					$	—					$	—
Gross realized losses			(15,227)						—						(15,227)						—
Net loss on sales of securities			$	(15,227)					$	—					$	(15,227)					$	—

Gains resulting from calls of securities available for sale were as follows for the periods presented below:

			Three Months Ended December 31,												Six Months Ended December 31,
			2022						2021						2022						2021
			(In Thousands)
Available for sale securities called:
Gross realized gains			$	—					$	—					$	—					$	1
Gross realized losses			—						—						—						—
Net gain on calls of securities			$	—					$	—					$	—					$	1

The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below:

			December 31, 2022						June 30, 2022
			(In Thousands)
Securities pledged:
Pledged for borrowings at the FHLB of New York			$	—					$	178,048
Pledged to secure public funds on deposit			397,855						357,841
Pledged for potential borrowings at the Federal Reserve Bank of New York			410,481						378,071
Total carrying value of securities pledged			$	808,336					$	913,960

The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at December 31, 2022 and June 30, 2022:

			December 31, 2022
			Less than 12 Months												12 Months or More												Total
			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Number of Securities						Fair Value						Unrealized Losses
			(Dollars in Thousands)
Securities Available for Sale:
Asset-backed securities			$	137,203					$	2,406					$	21,420					$	480					15						$	158,623					$	2,886
Collateralized loan obligations			177,907						3,631						192,556						5,368						28						370,463						8,999
Corporate bonds			87,731						7,972						50,356						6,845						29						138,087						14,817
Commercial pass-through securities			93,772						4,262						54,789						12,773						12						148,561						17,035
Residential pass-through securities			50,897						5,161						398,511						101,985						106						449,408						107,146
Total			$	547,510					$	23,432					$	717,632					$	127,451					190						$	1,265,142					$	150,883

			June 30, 2022
			Less than 12 Months												12 Months or More												Total
			Fair Value						Unrealized Losses						Fair Value						Unrealized Losses						Number of Securities						Fair Value						Unrealized Losses
			(Dollars in Thousands)
Securities Available for Sale:
Obligations of state and political subdivisions			$	11,310					$	89					$	—					$	—					30						$	11,310					$	89
Asset-backed securities			161,303						2,928						5,254						21						15						166,557						2,949
Collateralized loan obligations			236,967						6,435						70,846						1,445						24						307,813						7,880
Corporate bonds			129,407						6,464						3,815						185						27						133,222						6,649
Collateralized mortgage obligations			7,122						329						—						—						6						7,122						329
Commercial pass-through securities			63,045						3,194						102,817						16,577						21						165,862						19,771
Residential pass-through securities			237,928						26,566						274,197						54,058						106						512,125						80,624
Total			$	847,082					$	46,005					$	456,929					$	72,286					229						$	1,304,011					$	118,291

The following table presents the gross unrecognized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrecognized loss position within the held to maturity portfolio at December 31, 2022 and June 30, 2022:

			December 31, 2022
			Less than 12 Months												12 Months or More												Total
			Fair Value						Unrecognized Losses						Fair Value						Unrecognized Losses						Number of Securities						Fair Value						Unrecognized Losses
			(Dollars in Thousands)
Securities Held to Maturity:
Obligations of state and political subdivisions			$	18,057					$	285					$	—					$	—					36						$	18,057					$	285
Commercial pass-through securities			—						—						10,055						2,210						1						10,055						2,210
Residential pass-through securities			93,068						9,092						16,749						3,806						9						109,817						12,898
Total			$	111,125					$	9,377					$	26,804					$	6,016					46						$	137,929					$	15,393

			June 30, 2022
			Less than 12 Months												12 Months or More												Total
			Fair Value						Unrecognized Losses						Fair Value						Unrecognized Losses						Number of Securities						Fair Value						Unrecognized Losses
			(Dollars in Thousands)
Securities Held to Maturity:
Obligations of state and political subdivisions			$	8,681					$	78					$	—					$	—					15						$	8,681					$	78
Commercial pass-through securities			10,729						1,552						—						—						1						10,729						1,552
Residential pass-through securities			76,264						8,587						—						—						8						76,264						8,587
Total			$	95,674					$	10,217					$	—					$	—					24						$	95,674					$	10,217

Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or from other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statement of Income if management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at December 31, 2022. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. No allowance for credit losses was recorded at December 31, 2022 on available for sale securities.

The sale of available for sale securities during the three months ended December 31, 2022 was part of a wholesale restructuring and the proceeds were reinvested in higher yielding securities. The Company was not required to sell these securities.At December 31, 2022, the held to maturity securities portfolio consists of agency mortgage-backed securities and obligations of state and political subdivisions. The mortgage-backed securities are issued by U.S. government agencies and are implicitly guaranteed by the U.S. government. The obligations of state and political subdivisions in the portfolio are highly rated by major rating agencies and have a long history of no credit losses. The Company regularly monitors the obligations of state and political subdivisions sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period. No allowance for credit losses was recorded at December 31, 2022 on held to maturity securities.

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- References

No definition available.

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- Definition

The entire disclosure for investments in certain debt and equity securities.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2209399

Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 946
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2324412

Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 320
-URI http://asc.fasb.org/topic&trid=2196928

Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 940
-SubTopic 320
-URI http://asc.fasb.org/subtopic&trid=2176304

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher SEC
-Name Regulation S-K (SK)
-Number 229
-Section 1403
-Paragraph (b)

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