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INVESTMENT SECURITIES

3 Months Ended

Sep. 30, 2023

INVESTMENT SECURITIES

INVESTMENT SECURITIES

4.INVESTMENT SECURITIES

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


					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value
September 30, 2023
U.S. Government and agency obligations		$	401,100		$	—		$	(17,286)		$	383,814
Municipal obligations			28,087			—			(113)			27,974
Other debt securities			247			309			(69)			487
Total available for sale securities		$	429,434		$	309		$	(17,468)		$	412,275

June 30, 2023
U.S. Government and agency obligations		$	396,464		$	2		$	(18,737)		$	377,729
Municipal obligations			53,492			9			(67)			53,434
Other debt securities			261			309			(66)			504
Total available for sale securities		$	450,217		$	320		$	(18,870)		$	431,667

Accrued interest receivable on available for sale debt securities totaled $1.9 million at September 30, 2023 and is excluded from the estimate of credit losses.

There was no allowance for credit losses for securities available for sale as of September 30, 2023.

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


					Gross			Gross
		Amortized			Unrealized			Unrealized			Estimated
		Cost			Gains			Losses			Fair Value
September 30, 2023
Corporate debt securities		$	20,000		$	—		$	(1,870)		$	18,130
Municipal obligations			3,908			—			(135)			3,773
Total held to maturity securities		$	23,908		$	—		$	(2,005)		$	21,903

June 30, 2023
Corporate debt securities		$	20,000		$	—		$	(2,049)		$	17,951
Municipal obligations			3,949			—			(156)			3,793
Total held to maturity securities		$	23,949		$	—		$	(2,205)		$	21,744

Accrued interest receivable on held to maturity debt securities totaled $159,000 at September 30, 2023 and is excluded from the estimate of credit losses.

There was no allowance for credit losses for securities held to maturity as of September 30, 2023.

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):


		September 30, 2023
		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		$	57,422		$	(296)		$	326,392		$	(16,990)		$	383,814		$	(17,286)
Municipal obligations			27,974			(113)			—			—			27,974			(113)
Other debt securities			3			—			111			(69)			114			(69)
		$	85,399		$	(409)		$	326,503		$	(17,059)		$	411,902		$	(17,468)

Securities held to maturity:
Corporate debt securities		$	—		$	—		$	18,130		$	(1,870)		$	18,130		$	(1,870)
Municipal obligations			—			—			3,773			(135)			3,773			(135)
		$	—		$	—		$	21,903		$	(2,005)		$	21,903		$	(2,005)


		June 30, 2023
		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		$	104,145		$	(1,975)		$	268,782		$	(16,762)		$	372,927		$	(18,737)
Municipal obligations			47,781			(67)			—			—			47,781			(67)
Other debt securities			14			(1)			107			(65)			121			(66)
		$	151,940		$	(2,043)		$	268,889		$	(16,827)		$	420,829		$	(18,870)

Securities held to maturity:
Corporate debt securities		$	—		$	—		$	17,951		$	(2,049)		$	17,951		$	(2,049)
Municipal obligations			—			—			3,793			(156)			3,793			(156)
		$	—		$	—		$	21,744		$	(2,205)		$	21,744		$	(2,205)

Unrealized losses on securities available for sale have not been recognized into income because the issuers' debt securities are of high credit quality (rated AA or higher), management does not intend to sell, and it is likely that management will not be required to sell the securities prior to their anticipated recovery, and the decline in fair value is largely due to changes in interest rates and other market conditions. The issuers continue to make timely principal and interest payments on the securities. The fair value is expected to recover as the securities approach maturity.

As a result of the Company adopting ASC 326 using the prospective transition approach for debt securities for which other-than-temporary impairment had been recognized prior to July 1, 2023, the amortized cost basis remains the same before and after the effective date of ASC 326. The effective interest rate on these debt securities was not changed. Amounts previously recognized in accumulated other comprehensive income as of July 1, 2023 relating to improvements in cash flows expected to be collected will be accreted into income over the remaining life of the asset. Recoveries of amounts previously written off relating to improvements in cash flows after July 1, 2023 will be recorded in earnings when received.

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.


		September 30, 2023
		Amortized			Estimated
		Cost			Fair Value
Securities available for sale:
Due in one year or less		$	131,439		$	129,073
Due after one to five years			297,748			282,715
Other debt securities			247			487
		$	429,434		$	412,275

Securities held to maturity:
Due in one year or less		$	2,391		$	2,256
Due after one to five years			1,517			1,517
Due after five to ten years			20,000			18,130
		$	23,908		$	21,903

There were no sales of securities available for sale for the three months ended September 30, 2023 and 2022.

There were no sales of securities held to maturity for the three months ended September 30, 2023 and 2022.

There were no sales of equity securities for the three months ended September 30, 2023 and 2022.

At September 30, 2023, 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 the Company’s equity. As of September 30, 2023 and June 30, 2023, the carrying value of available for sale securities pledged to secure Federal Home Loan Bank of New York (“FHLBNY”) advances and municipal deposits was $407.2 million and $428.5 million, respectively.