Note 2: Investment Securities

The amortized cost and estimated fair value of investment securities as of June 30, 2020 and 2019 were as follows:


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
June 30, 2020	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS	$	115,763	$	2,636	$	(45)	$	118,354	$	115,763
U.S. SBA securities(1)		2,064		—		(17)		2,047		2,064
Certificate of deposits		800		—		—		800		800
Total investment securities - held to maturity	$	118,627	$	2,636	$	(62)	$	121,201	$	118,627

Available for sale
U.S. government agency MBS	$	2,823	$	120	$	—	$	2,943	$	2,943
U.S. government sponsored enterprise MBS		1,556		21		—		1,577		1,577
Private issue CMO(2)		204		—		(7)		197		197
Total investment securities - available for sale	$	4,583	$	141	$	(7)	$	4,717	$	4,717
Total investment securities	$	123,210	$	2,777	$	(69)	$	125,918	$	123,344

⁽¹⁾

Small Business Administration ("SBA").

⁽²⁾

Collateralized Mortgage Obligations (“CMO”).


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
June 30, 2019	Cost		Gains		(Losses)		Value		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		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		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

In fiscal 2020 and 2019, the Corporation received MBS principal payments of $32.1 million and $34.2 million, respectively and did not sell any investment securities. The Corporation purchased mortgage-backed securities totaling $55.9 million and $39.9 million during fiscal 2020 and 2019, respectively.

As of June 30, 2020 and 2019, the Corporation held investments with an unrealized loss position of $69,000 and $21,000, respectively.


As of June 30, 2020	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	$	12,731	$	45	$	—	$	—	$	12,731	$	45
U.S. SBA securities		—	$	—		2,040		17		2,040		17
Total investment securities - held to maturity	$	12,731	$	45	$	2,040	$	17	$	14,771	$	62

Available for sale
Private issue CMO	$	197	$	7	$	—	$	—	$	197	$	7
Total investment securities - available for sale	$	197	$	7	$	—	$	—	$	197	$	7
Total investment securities	$	12,928	$	52	$	2,040	$	17	$	14,968	$	69


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, 2020, the Corporation had investment securities with unrealized holding losses of $52,000 that were less than 12 months and $17,000 that were in an unrealized loss position for more than 12 months, as compared to investment securities at June 30, 2019 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. The unrealized loss at June 30, 2020 was attributable to two U.S. government sponsored enterprise MBS, one U.S. SBA security and three private issue CMOs and, based on the nature of the investments, management concluded that such unrealized losses were not other than temporary. 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. The Corporation does not believe that there was any OTTI at June 30, 2020 and 2019. 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, 2020 and 2019 were as follows:


	June 30, 2020				June 30, 2019
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
(In Thousands)	Cost		Value		Cost		Value
Held to maturity
Due in one year or less	$	800	$	800	$	400	$	400
Due after one through five years		19,389		20,194		32,584		32,728
Due after five through ten years		50,895		52,315		35,306		36,090
Due after ten years		47,543		47,892		25,800		26,141
Total investment securities - held to maturity	$	118,627	$	121,201	$	94,090	$	95,359

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		4,583		4,717		5,757		5,969
Total investment securities - available for sale	$	4,583	$	4,717	$	5,757	$	5,969
Total investment securities	$	123,210	$	125,918	$	99,847	$	101,328