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INVESTMENT SECURITIES

9 Months Ended

Mar. 31, 2022

INVESTMENT SECURITIES

INVESTMENT SECURITIES

5.INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities are as follows (dollars in thousands):


		March 31, 2022
					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value
Securities available for sale:
U.S. Government and agency obligations		$	339,414		$	1		$	(12,154)		$	327,261
Municipal obligations			90,109			—			(270)			89,839
Other debt securities			324			371			(52)			643
Total available for sale securities		$	429,847		$	372		$	(12,476)		$	417,743

Securities held to maturity:
Corporate debt securities		$	20,000		$	—		$	(1,017)		$	18,983
Municipal obligations			5,009			—			(115)			4,894
Total held to maturity securities		$	25,009		$	—		$	(1,132)		$	23,877

Equity securities:
Common stock		$	1,040		$	1,180		$	—		$	2,220
Total equity securities		$	1,040		$	1,180		$	—		$	2,220


		June 30, 2021
					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value
Securities available for sale:
U.S. Government and agency obligations		$	216,155		$	121		$	(235)		$	216,041
Municipal obligations			47,800			6			(9)			47,797
Other debt securities			424			385			(45)			764
Total available for sale securities		$	264,379		$	512		$	(289)		$	264,602

Securities held to maturity:
Corporate debt securities		$	7,000		$	—		$	(20)		$	6,980
Municipal obligations			3,878			61			—			3,939
Total held to maturity securities		$	10,878		$	61		$	(20)		$	10,919

Equity securities:
Common stock		$	1,463		$	1,416		$	—		$	2,879
Total equity securities		$	1,463		$	1,416		$	—		$	2,879

The estimated fair value and gross unrealized losses aggregated by security category and length of time such securities have been in a continuous unrealized loss position, is summarized as follows (dollars in thousands):


		March 31, 2022
		Less than 12 Months						12 Months or Longer						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Securities available for sale:
U.S. Government and agency obligations		$	246,632		$	(8,003)		$	75,613		$	(4,151)		$	322,245		$	(12,154)
Municipal obligations			88,883			(270)			—			—			88,883			(270)
Other debt securities			45			(1)			154			(51)			199			(52)
		$	335,560		$	(8,274)		$	75,767		$	(4,202)		$	411,327		$	(12,476)

Securities held to maturity:
Corporate debt securities		$	18,983		$	(1,017)		$	—		$	—		$	18,983		$	(1,017)
Municipal obligations			4,894			(115)			—			—			4,894			(115)
		$	23,877		$	(1,132)		$	—		$	—		$	23,877		$	(1,132)


		June 30, 2021
		Less than 12 Months						12 Months or Longer						Total
		Estimated			Unrealized			Estimated			Unrealized			Estimated			Unrealized
		Fair Value			Losses			Fair Value			Losses			Fair Value			Losses
Securities available for sale:
U.S. Government and agency obligations		$	85,518		$	(235)		$	—		$	—		$	85,518		$	(235)
Municipal obligations			21,484			(9)			—			—			21,484			(9)
Other debt securities			9			(1)			165			(44)			174			(45)
		$	107,011		$	(245)		$	165		$	(44)		$	107,176		$	(289)

Securities held to maturity:
Corporate debt securities		$	6,980		$	(20)		$	—		$	—		$	6,980		$	(20)
		$	6,980		$	(20)		$	—		$	—		$	6,980		$	(20)

At March 31, 2022, there were 164 securities with unrealized losses. Unrealized losses on debt securities are primarily related to increases in credit spreads since the securities were purchased. Unrealized losses on other debt securities (agency-backed and certain private-label mortgage-backed securities, asset-backed securities and collateralized mortgage obligation securities) are not considered other-than-temporary based upon analysis completed by management considering credit rating of the instrument, length of time each security has spent in an unrealized loss position and the strength of the underlying collateral.

At March 31, 2022, management reviewed all other debt securities which were rated less than investment grade for impairment, resulting in no additional impairment charges during the three or nine months ended March 31, 2022. At March 31, 2022, 55 securities with an amortized cost of $255,000 and remaining par value of $1.6 million were evaluated.

The table below presents a rollforward of the credit losses recognized in earnings (dollars in thousands):


Balance, July 1, 2021		$	1,214

Reductions for amounts realized for securities transactions			—

Balance, March 31, 2022		$	1,214

The fair value of debt securities and carrying amount, if different, by contractual maturity were as follows (dollars in thousands). Securities not due at a single maturity date are shown separately.


		March 31, 2022
		Amortized			Estimated
		Cost			Fair Value
Securities available for sale:
Due in one year or less		$	149,523		$	148,892
Due after one to five years			280,000			268,208
Other debt securities			324			643
		$	429,847		$	417,743

Securities held to maturity:
Due in one year or less		$	3,019		$	2,904
Due after one to five years			1,990			1,990
Due after five to ten years			20,000			18,983
		$	25,009		$	23,877

During the nine months ended March 31, 2022, the Company received $5.3 million in proceeds from the sale of securities available for sale, realizing gross gains of $4,000. There were no sales of securities available for sale for the three months ended March 31, 2022. There were no sales of securities available for sale for the three and nine months ended March 31, 2021.

There were no sales of securities held to maturity for the three and nine months ended March 31, 2022 and 2021.

During the nine months ended March 31, 2022 and 2021, the Company received $803,000 and $7.5 million, respectively in proceeds from the sale of equity securities. There were no sales of equity securities for the three months ended March 31, 2022 and 2021.

The portion of unrealized gains and losses for the period that relates to equity securities still held at the reporting date are as follows (dollars in thousands):


		For the Three Months Ended March 31,						For the Nine Months Ended March 31,
		2022			2021			2022			2021
Net gains recognized during the period on equity securities		$	26		$	217		$	144		$	1,632
Less: Net gains recognized during the period on equity securities sold during the period			—			—			17			1,190
Unrealized gains recognized during reporting period on equity securities still held at reporting date		$	26		$	217		$	127		$	442

At March 31, 2022, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our equity. As of March 31, 2022, and June 30, 2021, the carrying value of available for sale securities pledged to secure FHLBNY advances and municipal deposits was $413.3 million and $252.8 million, respectively.