Investment Securities

9 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Note 5: Investment Securities

The amortized cost and estimated fair value of investment securities as of March 31, 2019 and June 30, 2018 were as follows:

March 31, 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 ⁽¹⁾	$	99,193	$	728	$	(163	)	$	99,758	$	99,193
U.S. SBA securities ⁽²⁾		2,917		—		(19	)		2,898		2,917
Certificate of deposits		400		—		—			400		400
Total investment securities - held to maturity	$	102,510	$	728	$	(182	)	$	103,056	$	102,510

Available for sale:
U.S. government agency MBS	$	3,677	$	119	$	—		$	3,796	$	3,796
U.S. government sponsored enterprise MBS		2,107		91		—			2,198		2,198
Private issue CMO ⁽³⁾		296		4		—			300		300
Total investment securities - available for sale	$	6,080	$	214	$	—		$	6,294	$	6,294
Total investment securities	$	108,590	$	942	$	(182	)	$	109,350	$	108,804

⁽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	$	479	$	(777	)	$	94,735	$	95,309

In the third quarters of fiscal 2019 and 2018, the Corporation received MBS principal payments of $8.6 million and $7.4 million, respectively, and there were no sales of investment securities during these periods. The Corporation purchased U.S. government sponsored enterprise MBS totaling $26.2 million and $12.4 million, to be held to maturity, respectively. For the first nine months of fiscal 2019 and 2018, the Corporation received MBS principal payments of $25.2 million and $19.1 million, respectively, and there were no sales of investment securities during these periods. In the first nine months of fiscal 2019 and 2018, the Corporation purchased U.S. government sponsored enterprise MBS totaling $39.7 million and $50.9 million, to be held to maturity, respectively. In addition, the Corporation also purchased $3.0 million in U.S. SBA loan pool securities to be held to maturity in the third quarter and first nine months of fiscal 2018.

The Corporation held investments with an unrealized loss position of $182,000 at March 31, 2019 and $777,000 at June 30, 2018.

As of March 31, 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		$	—		$	—		$	26,758		$	163		$	26,758		$	163
U.S. SBA securities			2,892			19			—			—			2,892			19
Total investment securities		$	2,892		$	19		$	26,758		$	163		$	29,650		$	182

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 March 31, 2019, $163,000 of the $182,000 unrealized holding losses were 12 months or more; while at June 30, 2018, all of the unrealized holding losses were less than 12 months. The Corporation does not believe that there were any other-than-temporary impairments on the investment securities at March 31, 2019 and 2018; therefore, no impairment losses were recorded for the quarters and nine months ended March 31, 2019 and 2018.

Contractual maturities of investment securities as of March 31, 2019 and June 30, 2018 were as follows:

	March 31, 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	$	200	$	200	$	600	$	600
Due after one through five years		35,345		35,259		24,961		24,569
Due after five through ten years		38,691		39,126		22,847		22,477
Due after ten years		28,274		28,471		39,405		39,593
Total investment securities - held to maturity	$	102,510	$	103,056	$	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		6,080		6,294		7,220		7,496
Total investment securities - available for sale	$	6,080	$	6,294	$	7,220	$	7,496
Total investment securities	$	108,590	$	109,350	$	95,033	$	94,735