Investment Securities

3 Months Ended

Sep. 30, 2018

Investments, Debt and Equity Securities [Abstract]

Note 5: Investment Securities

The amortized cost and estimated fair value of investment securities as of September 30, 2018 and June 30, 2018 were as follows:

September 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value		Carrying Value
(In Thousands)
Held to maturity:
U.S. government sponsored enterprise MBS ⁽¹⁾	$	76,051	$	215	$	(835	)	$	75,431	$	76,051
U.S. SBA securities ⁽²⁾		2,960		—		(17	)		2,943		2,960
Certificate of deposits		600		—		—			600		600
Total investment securities - held to maturity	$	79,611	$	215	$	(852	)	$	78,974	$	79,611

Available for sale:
U.S. government agency MBS	$	4,024	$	132	$	—		$	4,156	$	4,156
U.S. government sponsored enterprise MBS		2,451		110		—			2,561		2,561
Private issue CMO ⁽³⁾		313		3		—			316		316
Total investment securities - available for sale	$	6,788	$	245	$	—		$	7,033	$	7,033
Total investment securities	$	86,399	$	460	$	(852	)	$	86,007	$	86,644

⁽¹⁾	Mortgage-Backed Securities ("MBS").

⁽²⁾	Small Business Administration ("SBA").

⁽³⁾	Collateralized Mortgage Obligations ("CMO").

June 30, 2018	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value		Carrying Value
(In Thousands)
Held to maturity:
U.S. government sponsored enterprise MBS	$	84,227	$	203	$	(762	)	$	83,668	$	84,227
U.S. SBA securities		2,986		—		(15	)		2,971		2,986
Certificate of deposits		600		—		—			600		600
Total investment securities - held to maturity	$	87,813	$	203	$	(777	)	$	87,239	$	87,813

Available for sale:
U.S. government agency MBS	$	4,234	$	150	$	—		$	4,384	$	4,384
U.S. government sponsored enterprise MBS		2,640		122		—			2,762		2,762
Private issue CMO		346		4		—			350		350
Total investment securities - available for sale	$	7,220	$	276	$	—		$	7,496	$	7,496
Total investment securities	$	95,033	$	497	$	(777	)	$	94,735	$	95,309

In the first quarters of fiscal 2019 and 2018, the Corporation received MBS principal payments of $8.3 million and $6.0 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the first quarter of fiscal 2019; while the Corporation purchased U.S. government sponsored enterprise MBS totaling $10.1 million, to be held to maturity, during the first quarter of fiscal 2018.

The Corporation held investments with an unrealized loss position of $852,000 at September 30, 2018 and $777,000 at June 30, 2018.

As of September 30, 2018	Unrealized Holding Losses				Unrealized Holding Losses				Unrealized Holding Losses
(In Thousands)	Less Than 12 Months				12 Months or More				Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
Description of Securities	Value		Losses		Value		Losses		Value		Losses
Held to maturity:
U.S. government sponsored enterprise MBS	$	16,232	$	264	$	26,623	$	571	$	42,855	$	835
U.S. SBA securities		2,936		17		—		—		2,936		17
Total investment securities	$	19,168	$	281	$	26,623	$	571	$	45,791	$	852

As of June 30, 2018	Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)	Less Than 12 Months						12 Months or More						Total
	Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities	Value			Losses			Value			Losses			Value			Losses
Held to maturity:
U.S. government sponsored enterprise MBS		$	47,045		$	762		$	—		$	—		$	47,045		$	762
U.S. SBA securities			2,964			15			—			—			2,964			15
Total investment securities		$	50,009		$	777		$	—		$	—		$	50,009		$	777

The Corporation evaluates individual investment securities quarterly for other-than-temporary declines in market value. At September 30, 2018, $571,000 of the total $852,000 unrealized holding losses were more than 12 months; while at June 30, 2018, all of the unrealized holding loss was less than 12 months. The Corporation does not believe that there were any other-than-temporary impairments on the investment securities at September 30, 2018 and 2017; therefore, no impairment losses were recorded for the quarters ended September 30, 2018 and 2017.

Contractual maturities of investment securities as of September 30, 2018 and June 30, 2018 were as follows:

	September 30, 2018				June 30, 2018
(In Thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value

Held to maturity:
Due in one year or less	$	600	$	600	$	600	$	600
Due after one through five years		29,549		28,969		24,961		24,569
Due after five through ten years		14,141		13,886		22,847		22,477
Due after ten years		35,321		35,519		39,405		39,593
Total investment securities - held to maturity	$	79,611	$	78,974	$	87,813	$	87,239

Available for sale:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one through five years		—		—		—		—
Due after five through ten years		—		—		—		—
Due after ten years		6,788		7,033		7,220		7,496
Total investment securities - available for sale	$	6,788	$	7,033	$	7,220	$	7,496
Total investment securities	$	86,399	$	86,007	$	95,033	$	94,735