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Securities | 6 Months Ended
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Dec. 31, 2022
Securities [Abstract] |
Securities | (4) Securities Securities at December 31, 2022 consisted of the following:
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government sponsored enterprises |  | $ | 13,061 |  |  | $ | - |  |  | $ | 2,332 |  |  | $ | 10,729 |
U.S. treasury securities |  |  | 18,176 |  |  |  | - |  |  |  | 2,070 |  |  |  | 16,106 |
State and political subdivisions |  |  | 193,612 |  |  |  | 546 |  |  |  | 261 |  |  |  | 193,897 |
Mortgage-backed securities-residential |  |  | 31,025 |  |  |  | - |  |  |  | 4,329 |  |  |  | 26,696 |
Mortgage-backed securities-multi-family |  |  | 91,243 |  |  |  | - |  |  |  | 19,612 |  |  |  | 71,631 |
Corporate debt securities |  |  | 17,899 |  |  |  | - |  |  |  | 1,840 |  |  |  | 16,059 |
Total securities available-for-sale |  |  | 365,016 |  |  |  | 546 |  |  |  | 30,444 |  |  |  | 335,118 |
Securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  |  | 33,664 |  |  |  | - |  |  |  | 2,566 |  |  |  | 31,098 |
State and political subdivisions |  |  | 487,495 |  |  |  | 3,479 |  |  |  | 35,181 |  |  |  | 455,793 |
Mortgage-backed securities-residential |  |  | 39,530 |  |  |  | - |  |  |  | 3,721 |  |  |  | 35,809 |
Mortgage-backed securities-multi-family |  |  | 160,100 |  |  |  | - |  |  |  | 20,795 |  |  |  | 139,305 |
Corporate debt securities |  |  | 21,641 |  |  |  | 2 |  |  |  | 1,478 |  |  |  | 20,165 |
Other securities |  |  | 40 |  |  |  | - |  |  |  | - |  |  |  | 40 |
Total securities held-to-maturity |  |  | 742,470 |  |  |  | 3,481 |  |  |  | 63,741 |  |  |  | 682,210 |
Total securities |  | $ | 1,107,486 |  |  | $ | 4,027 |  |  | $ | 94,185 |  |  | $ | 1,017,328 |
Securities at June 30, 2022 consisted of the following:
(In thousands) |  | Amortized Cost |  |  | Gross Unrealized Gains |  |  | Gross Unrealized Losses |  |  | Estimated Fair Value |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |
U.S. government sponsored enterprises |  | $ | 13,066 |  |  | $ | - |  |  | $ | 1,747 |  |  | $ | 11,319 |
U.S. treasury securities |  |  | 20,158 |  |  |  | - |  |  |  | 1,731 |  |  |  | 18,427 |
State and political subdivisions |  |  | 247,978 |  |  |  | 374 |  |  |  | 276 |  |  |  | 248,076 |
Mortgage-backed securities-residential |  |  | 33,186 |  |  |  | - |  |  |  | 3,289 |  |  |  | 29,897 |
Mortgage-backed securities-multi-family |  |  | 99,353 |  |  |  | - |  |  |  | 15,644 |  |  |  | 83,709 |
Corporate debt securities |  |  | 17,884 |  |  |  | - |  |  |  | 1,250 |  |  |  | 16,634 |
Total securities available-for-sale |  |  | 431,625 |  |  |  | 374 |  |  |  | 23,937 |  |  |  | 408,062 |
Securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  |  | 33,623 |  |  |  | - |  |  |  | 1,643 |  |  |  | 31,980 |
State and political subdivisions |  |  | 493,897 |  |  |  | 2,760 |  |  |  | 35,747 |  |  |  | 460,910 |
Mortgage-backed securities-residential |  |  | 42,461 |  |  |  | 1 |  |  |  | 2,242 |  |  |  | 40,220 |
Mortgage-backed securities-multi-family |  |  | 171,921 |  |  |  | 2 |  |  |  | 13,895 |  |  |  | 158,028 |
Corporate debt securities |  |  | 19,900 |  |  |  | 16 |  |  |  | 651 |  |  |  | 19,265 |
Other securities |  |  | 50 |  |  |  | - |  |  |  | - |  |  |  | 50 |
Total securities held-to-maturity |  |  | 761,852 |  |  |  | 2,779 |  |  |  | 54,178 |  |  |  | 710,453 |
Total securities |  | $ | 1,193,477 |  |  | $ | 3,153 |  |  | $ | 78,115 |  |  | $ | 1,118,515 |
The Company’s current policies generally limit securities investments to U.S. Government and securities of government sponsored enterprises, federal funds sold, municipal bonds, corporate debt obligations, subordinated debt of banks and certain mutual funds. In addition, the Company’s policies permit investments in mortgage-backed securities, including securities issued and guaranteed by Fannie Mae, Freddie Mac, and GNMA, and collateralized mortgage obligations issued by these entities. As of December 31, 2022, all mortgage-backed securities including collateralized mortgage obligations were securities of government sponsored enterprises, no private-label mortgage-backed securities or collateralized mortgage obligations were held in the securities portfolio. The Company’s investments in state and political subdivisions securities generally are municipal obligations that are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. The obligations issued by school districts are supported by state aid. Primarily, these investments are issued by municipalities within New York State. The Company’s current securities investment strategy utilizes a risk management approach of diversified investing among three categories: short-, intermediate- and long-term. The emphasis of this approach is to increase overall investment securities yields while managing interest rate risk. The Company will only invest in high quality securities as determined by management’s analysis at the time of purchase. The Company generally does not engage in any derivative or hedging transactions, such as interest rate swaps or caps. The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at December 31, 2022.
|  | Less Than 12 Months |  |  | More Than 12 Months |  |  | Total |
(In thousands, except number of securities) |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government sponsored enterprises |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 10,729 |  |  | $ | 2,332 |  |  |  | 5 |  |  | $ | 10,729 |  |  | $ | 2,332 |  |  |  | 5 |
U.S. treasury securities |  |  | 535 |  |  |  | 53 |  |  |  | 1 |  |  |  | 15,571 |  |  |  | 2,017 |  |  |  | 6 |  |  |  | 16,106 |  |  |  | 2,070 |  |  |  | 7 |
State and political subdivisions |  |  | 110,058 |  |  |  | 261 |  |  |  | 69 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 110,058 |  |  |  | 261 |  |  |  | 69 |
Mortgage-backed securities-residential |  |  | 7,537 |  |  |  | 687 |  |  |  | 21 |  |  |  | 19,159 |  |  |  | 3,642 |  |  |  | 9 |  |  |  | 26,696 |  |  |  | 4,329 |  |  |  | 30 |
Mortgage-backed securities-multi-family |  |  | 7,920 |  |  |  | 1,118 |  |  |  | 4 |  |  |  | 63,711 |  |  |  | 18,494 |  |  |  | 27 |  |  |  | 71,631 |  |  |  | 19,612 |  |  |  | 31 |
Corporate debt securities |  |  | 14,903 |  |  |  | 1,497 |  |  |  | 13 |  |  |  | 1,157 |  |  |  | 343 |  |  |  | 2 |  |  |  | 16,060 |  |  |  | 1,840 |  |  |  | 15 |
Total securities available-for-sale |  |  | 140,953 |  |  |  | 3,616 |  |  |  | 108 |  |  |  | 110,327 |  |  |  | 26,828 |  |  |  | 49 |  |  |  | 251,280 |  |  |  | 30,444 |  |  |  | 157 |
Securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  |  | 21,508 |  |  |  | 1,202 |  |  |  | 5 |  |  |  | 9,590 |  |  |  | 1,364 |  |  |  | 4 |  |  |  | 31,098 |  |  |  | 2,566 |  |  |  | 9 |
State and political subdivisions |  |  | 255,862 |  |  |  | 12,094 |  |  |  | 3,457 |  |  |  | 105,314 |  |  |  | 23,087 |  |  |  | 604 |  |  |  | 361,176 |  |  |  | 35,181 |  |  |  | 4,061 |
Mortgage-backed securities-residential |  |  | 24,620 |  |  |  | 1,808 |  |  |  | 30 |  |  |  | 11,189 |  |  |  | 1,913 |  |  |  | 3 |  |  |  | 35,809 |  |  |  | 3,721 |  |  |  | 33 |
Mortgage-backed securities-multi-family |  |  | 75,500 |  |  |  | 6,316 |  |  |  | 40 |  |  |  | 63,806 |  |  |  | 14,479 |  |  |  | 22 |  |  |  | 139,306 |  |  |  | 20,795 |  |  |  | 62 |
Corporate debt securities |  |  | 5,998 |  |  |  | 602 |  |  |  | 5 |  |  |  | 6,417 |  |  |  | 876 |  |  |  | 8 |  |  |  | 12,415 |  |  |  | 1,478 |  |  |  | 13 |
Total securities held-to-maturity |  |  | 383,488 |  |  |  | 22,022 |  |  |  | 3,537 |  |  |  | 196,316 |  |  |  | 41,719 |  |  |  | 641 |  |  |  | 579,804 |  |  |  | 63,741 |  |  |  | 4,178 |
Total securities |  | $ | 524,441 |  |  | $ | 25,638 |  |  |  | 3,645 |  |  | $ | 306,643 |  |  | $ | 68,547 |  |  |  | 690 |  |  | $ | 831,084 |  |  | $ | 94,185 |  |  |  | 4,335 |
The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2022.
|  | Less Than 12 Months |  |  | More Than 12 Months |  |  | Total |
(In thousands, except number of securities) |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |  |  | Fair Value |  |  | Unrealized Losses |  |  | Number of Securities |
Securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government sponsored enterprises |  | $ | 11,319 |  |  | $ | 1,747 |  |  |  | 5 |  |  | $ | - |  |  | $ | - |  |  |  | - |  |  | $ | 11,319 |  |  | $ | 1,747 |  |  |  | 5 |
U.S. treasury securities |  |  | 18,427 |  |  |  | 1,731 |  |  |  | 8 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 18,427 |  |  |  | 1,731 |  |  |  | 8 |
State and political subdivisions |  |  | 140,324 |  |  |  | 276 |  |  |  | 148 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 140,324 |  |  |  | 276 |  |  |  | 148 |
Mortgage-backed securities-residential |  |  | 29,872 |  |  |  | 3,289 |  |  |  | 27 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 29,872 |  |  |  | 3,289 |  |  |  | 27 |
Mortgage-backed securities-multi-family |  |  | 71,631 |  |  |  | 12,868 |  |  |  | 29 |  |  |  | 12,078 |  |  |  | 2,776 |  |  |  | 5 |  |  |  | 83,709 |  |  |  | 15,644 |  |  |  | 34 |
Corporate debt securities |  |  | 16,634 |  |  |  | 1,250 |  |  |  | 16 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 16,634 |  |  |  | 1,250 |  |  |  | 16 |
Total securities available-for-sale |  |  | 288,207 |  |  |  | 21,161 |  |  |  | 233 |  |  |  | 12,078 |  |  |  | 2,776 |  |  |  | 5 |  |  |  | 300,285 |  |  |  | 23,937 |  |  |  | 238 |
Securities held-to-maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. treasury securities |  |  | 31,980 |  |  |  | 1,643 |  |  |  | 9 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 31,980 |  |  |  | 1,643 |  |  |  | 9 |
State and political subdivisions |  |  | 353,837 |  |  |  | 35,564 |  |  |  | 2,362 |  |  |  | 735 |  |  |  | 183 |  |  |  | 5 |  |  |  | 354,572 |  |  |  | 35,747 |  |  |  | 2,367 |
Mortgage-backed securities-residential |  |  | 39,865 |  |  |  | 2,242 |  |  |  | 27 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 39,865 |  |  |  | 2,242 |  |  |  | 27 |
Mortgage-backed securities-multi-family |  |  | 155,726 |  |  |  | 13,895 |  |  |  | 68 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 155,726 |  |  |  | 13,895 |  |  |  | 68 |
Corporate debt securities |  |  | 10,751 |  |  |  | 651 |  |  |  | 11 |  |  |  | - |  |  |  | - |  |  |  | - |  |  |  | 10,751 |  |  |  | 651 |  |  |  | 11 |
Total securities held-to-maturity |  |  | 592,159 |  |  |  | 53,995 |  |  |  | 2,477 |  |  |  | 735 |  |  |  | 183 |  |  |  | 5 |  |  |  | 592,894 |  |  |  | 54,178 |  |  |  | 2,482 |
Total securities |  | $ | 880,366 |  |  | $ | 75,156 |  |  |  | 2,710 |  |  | $ | 12,813 |  |  | $ | 2,959 |  |  |  | 10 |  |  | $ | 893,179 |  |  | $ | 78,115 |  |  |  | 2,720 |
When the fair value of a held-to-maturity or available-for-sale security is less than its amortized cost basis, an assessment is made as to whether other-than-temporary impairment (“OTTI”) is present. The Company considers numerous factors when determining whether a potential OTTI exists and the period over which the debt security is expected to recover. The principal factors considered are (1) the length of time and the extent to which the fair value has been less than the amortized cost basis, (2) the financial condition of the issuer (and guarantor, if any) and adverse conditions specifically related to the security, industry or geographic area, (3) failure of the issuer of the security to make scheduled interest or principal payments, (4) any changes to the rating of the security by a rating agency, and (5) the presence of credit enhancements, if any, including the guarantee of the federal government or any of its agencies. OTTI is considered to have occurred if (1) the Company intends to sell the security before recovery of its amortized cost basis, (2) it is more likely than not the Company will be required to sell the security before recovery of its amortized cost basis, or (3) if the present value of expected cash flows is not sufficient to recover the entire amortized cost basis. In determining the present value of expected cash flows, the Company discounts the expected cash flows at the effective interest rate implicit in the security at the date of acquisition. In estimating cash flows expected to be collected, the Company uses available information with respect to security prepayment speeds, default rates and severity. Credit-related OTTI is recognized in earnings while noncredit-related OTTI on securities not expected to be sold is recognized in other comprehensive income/loss (“OCI”). Credit-related OTTI is measured as the difference between the present value of an impaired security’s expected cash flows and its amortized cost basis. Noncredit-related OTTI is measured as the difference between the fair value of the security and its amortized cost less any credit-related losses recognized. For securities classified as held-to-maturity, the amount of OTTI recognized in OCI is accreted to the credit-adjusted expected cash flow amounts of the securities over future periods. During the six months ended December 31, 2022, interest rates have increased, causing the unrealized loss on debt securities to increase, which does not indicate OTTI. Management has evaluated securities considering the other factors as outlined above, and based on this evaluation the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2022. There were no transfers of securities available-for-sale to held-to-maturity during the three and six months ended December 31, 2022 or 2021. During the three and six months ended December 31, 2022, a loss of $251,000 was recognized from one sale of an available-for-sale security. The proceeds were used to fund higher yielding loans. During the three and six months ended December 31, 2021, there were no sales of securities and no gains or losses were recognized. There was no other-than-temporary impairment loss recognized during the three and six months ended December 31, 2022 and 2021. The estimated fair values of debt securities at December 31, 2022, by contractual maturity are shown below. Expected maturities may differ from contractual maturities, because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. (In thousands)
Available-for-sale debt securities |  | Amortized Cost |  |  | Fair Value |
Within one year |  | $ | 193,528 |  |  | $ | 193,814 |
After one year through five years |  |  | 27,017 |  |  |  | 24,345 |
After five years through ten years |  |  | 20,703 |  |  |  | 17,475 |
After ten years |  |  | 1,500 |  |  |  | 1,157 |
Total |  |  | 242,748 |  |  |  | 236,791 |
Mortgage-backed securities |  |  | 122,268 |  |  |  | 98,327 |
Total available-for-sale securities |  |  | 365,016 |  |  |  | 335,118 |
Held-to-maturity debt securities |  |  |  |  |  |  |  |
Within one year |  |  | 59,578 |  |  |  | 59,044 |
After one year through five years |  |  | 167,831 |  |  |  | 163,465 |
After five years through ten years |  |  | 141,455 |  |  |  | 133,712 |
After ten years |  |  | 173,976 |  |  |  | 150,875 |
Total |  |  | 542,840 |  |  |  | 507,096 |
Mortgage-backed securities |  |  | 199,630 |  |  |  | 175,114 |
Total held-to-maturity securities |  |  | 742,470 |  |  |  | 682,210 |
Total debt securities |  | $ | 1,107,486 |  |  | $ | 1,017,328 |
At December 31, 2022 and June 30, 2022, securities with an aggregate fair value of $843.3 million and $892.9 million, respectively, were pledged as collateral for deposits in excess of FDIC insurance limits for various municipalities placing deposits with the Commercial Bank. At December 31, 2022 and June 30, 2022, securities with an aggregate fair value of $16.8 million and $17.4 million, respectively, were pledged as collateral for potential borrowings at the Federal Reserve Bank discount window. The Company did not participate in any securities lending programs during the three and six months ended December 31, 2022 or 2021. Federal Home Loan Bank Stock Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions, FHLB stock is carried at cost. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. Impairment of this investment is evaluated quarterly and is a matter of judgment that reflects management’s view of the FHLB’s long-term performance, which includes factors such as the following: its operating performance; the severity and duration of declines in the fair value of its net assets related to its capital stock amount; its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance; the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of the FHLB; and its liquidity and funding position. After evaluating these considerations, the Company concluded that the par value of its investment in FHLB stock will be recovered and, therefore, no impairment charge was recorded during the three and six months ended December 31, 2022 or 2021.

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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 https://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 https://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 https://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 https://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) + Details
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