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Investment Securities

12 Months Ended

Jun. 30, 2022

Investment Securities

Investment Securities

Note 2: Investment Securities

The amortized cost and estimated fair value of investment securities as of June 30, 2022 and 2021 were as follows:


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
June 30, 2022		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS⁽¹⁾		$	180,492		$	63		$	(13,945)		$	166,610		$	180,492
U.S. government sponsored enterprise CMO⁽²⁾			3,913			—			(150)			3,763			3,913
U.S. SBA securities⁽³⁾			940			11			—			951			940
Certificate of deposits			400			—			—			400			400
Total investment securities - held to maturity			185,745			74			(14,095)			171,724			185,745

Available for sale
U.S. government agency MBS⁽¹⁾			1,698			6			(6)			1,698			1,698
U.S. government sponsored enterprise MBS⁽¹⁾			865			4			(4)			865			865
Private issue CMO⁽²⁾			118			—			(5)			113			113
Total investment securities - available for sale			2,681			10			(15)			2,676			2,676
Total investment securities		$	188,426		$	84		$	(14,110)		$	174,400		$	188,421

(1)	Mortgage-backed securities (“MBS”).

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

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


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
June 30, 2021		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS		$	220,448		$	2,209		$	(810)		$	221,847		$	220,448
U.S. SBA securities			1,858			16			—			1,874			1,858
Certificate of deposits			1,000			—			—			1,000			1,000
Total investment securities - held to maturity			223,306			2,225			(810)			224,721			223,306

Available for sale
U.S. government agency MBS			2,146			76			—			2,222			2,222
U.S. government sponsored enterprise MBS			1,197			14			—			1,211			1,211
Private issue CMO			151			3			—			154			154
Total investment securities - available for sale			3,494			93			—			3,587			3,587
Total investment securities		$	226,800		$	2,318		$	(810)		$	228,308		$	226,893

In fiscal 2022 and 2021, the Corporation received MBS principal payments of $55.3 million and $52.6 million, respectively and did not sell any investment securities. The Corporation purchased MBS totaling $19.0 million and $158.0 million during fiscal 2022 and 2021, respectively.

As of June 30, 2022 and 2021, the Corporation held investments with an unrealized loss position of $14.1 million and $810,000, respectively.


As of June 30, 2022		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		$	121,844		$	9,018		$	35,528		$	4,927		$	157,372		$	13,945
U.S. government sponsored enterprise CMO			3,764			150			—			—			3,764			150
Total investment securities - held to maturity			125,608			9,168			35,528			4,927			161,136			14,095

Available for sale
U.S government agency MBS			826			6			—			—			826			6
U.S. government sponsored enterprise MBS			671			4			—			—			671			4
Private issue CMO			113			5			—			—			113			5
Total investment securities - available for sale			1,610			15			—			—			1,610			15
Total investment securities		$	127,218		$	9,183		$	35,528		$	4,927		$	162,746		$	14,110


As of June 30, 2021		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		$	84,600		$	810		$	—		$	—		$	84,600		$	810
Total investment securities - held to maturity			84,600			810			—			—			84,600			810

Total investment securities		$	84,600		$	810		$	—		$	—		$	84,600		$	810

As of June 30, 2022, the Corporation had investment securities with unrealized holding losses of $9.2 million that were less than 12 months and $4.9 million that were in an unrealized loss position for more than 12 months, as compared to investment securities at June 30, 2021 with unrealized holding losses of $810,000 that were less than 12 months and none that were in an unrealized loss position for more than 12 months. The unrealized loss at June 30, 2022 was primarily attributable to 39 U.S. government sponsored enterprise MBS, two U.S. government sponsored enterprise CMOs 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, 2021 was attributable to 16 U.S. government sponsored enterprise MBS 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, 2022 and 2021. 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, 2022 and 2021 were as follows:


		June 30, 2022						June 30, 2021
					Estimated						Estimated
		Amortized			Fair			Amortized			Fair
(In Thousands)		Cost			Value			Cost			Value
Held to maturity
Due in one year or less		$	1,427		$	1,425		$	1,209		$	1,218
Due after one through five years			10,908			10,805			14,544			15,179
Due after five through ten years			77,167			72,625			90,798			91,780
Due after ten years			96,243			86,869			116,755			116,544
Total investment securities - held to maturity		$	185,745		$	171,724		$	223,306		$	224,721

Available for sale
Due in one year or less		$	—		$	—		$	—		$	—
Due after one through five years			—			—			—			—
Due after five through ten years			98			98			—			—
Due after ten years			2,583			2,578			3,494			3,587
Total investment securities - available for sale		$	2,681		$	2,676		$	3,494		$	3,587
Total investment securities		$	188,426		$	174,400		$	226,800		$	228,308