Investment Securities

12 Months Ended

Jun. 30, 2019

Investments, Debt and Equity Securities [Abstract]

Note 2: Investment Securities

The amortized cost and estimated fair value of investment securities as of June 30, 2019 and 2018 were as follows:

June 30, 2019	Amortized Cost		Gross Unrealized Gains		Gross Unrealized (Losses)			Estimated Fair Value		Carrying Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS	$	90,394	$	1,289	$	(14	)	$	91,669	$	90,394
U.S. SBA securities⁽¹⁾	2,896		—		(6		)	2,890		2,896
Certificate of deposits	800		—		—			800		800
Total investment securities - held to maturity	$	94,090	$	1,289	$	(20	)	$	95,359	$	94,090

Available for sale
U.S. government agency MBS	$	3,498	$	116	$	(1	)	$	3,613	$	3,613
U.S. government sponsored enterprise MBS	1,998		89		—			2,087		2,087
Private issue CMO⁽²⁾	261		8		—			269		269
Total investment securities - available for sale	$	5,757	$	213	$	(1	)	$	5,969	$	5,969
Total investment securities	$	99,847	$	1,502	$	(21	)	$	101,328	$	100,059

⁽¹⁾	Small Business Administration ("SBA").

⁽²⁾	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⁽¹⁾	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⁽²⁾	346		4		—			350		350
Total investment securities - available for sale	$	7,220	$	276	$	—		$	7,496	$	7,496
Total investment securities	$	95,033	$	479	$	(777	)	$	94,735	$	95,309

⁽¹⁾	Small Business Administration ("SBA").

⁽²⁾	Collateralized Mortgage Obligations (“CMO”).

In fiscal 2019 and 2018, the Corporation received MBS principal payments of $34.2 million and $27.2 million, respectively and did not sell any investment securities. The Corporation purchased mortgage-backed securities totaling $39.9 million and $53.9 million during fiscal 2019 and 2018, respectively.

As of June 30, 2019 and 2018, the Corporation held investments with unrealized loss position of $21,000 and $777,000, respectively.

As of June 30, 2019	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	$	6,507	$	8	$	1,657	$	6	$	8,164	$	14
U.S. SBA securities		—	$	—		2,883		6		2,883		6
Total investment securities – held to maturity	$	6,507	$	8	$	4,540	$	12	$	11,047	$	20

Available for sale
U.S. government agency MBS	$	289	$	1	$	—	$	—	$	289	$	1
Total investment securities – available for sale	$	289	$	1	$	—	$	—	$	289	$	1
Total investment securities	$	6,796	$	9	$	4,540	$	12	$	11,336	$	21

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

As of June 30, 2019, the Corporation had investment securities with unrealized holding losses of $9,000 that were less than 12 months and $12,000 that were in an unrealized loss position for more than 12 months, as compared to investment securities at June 30, 2018 with unrealized holding losses of $777,000 that were less than 12 months. The unrealized loss at June 30, 2019 was attributable to one U.S. government agency MBS, three U.S. government sponsored enterprise MBS and one U.S. SBA security and, based on the nature of the investments, management concluded that such unrealized losses were not other than temporary; while the unrealized loss at June 30, 2018 was attributable to 13 U.S. government sponsored enterprise MBS and one U.S. SBA security, and based on the nature of the investments, management concluded that such unrealized losses were not other than temporary. The Corporation does not believe that there was any OTTI at June 30, 2019 and 2018. At each of these dates, the Corporation intended and had the ability to hold the investment securities and was not likely to be required to sell the securities before realizing a full recovery.

Contractual maturities of investment securities as of June 30, 2019 and 2018 were as follows:

	June 30, 2019				June 30, 2018
(In Thousands)	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Held to maturity
Due in one year or less	$	400	$	400	$	600	$	600
Due after one through five years	32,584		32,728		24,961		24,569
Due after five through ten years	35,306		36,090		22,847		22,477
Due after ten years	25,800		26,141		39,405		39,593
Total investment securities - held to maturity	$	94,090	$	95,359	$	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	5,757		5,969		7,220		7,496
No stated maturity (common stock)	—		—		—		—
Total investment securities - available for sale	$	5,757	$	5,969	$	7,220	$	7,496
Total investment securities	$	99,847	$	101,328	$	95,033	$	94,735