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Investment Securities

9 Months Ended

Mar. 31, 2022

Investment Securities

Investment Securities

Note 4: Investment Securities

The amortized cost and estimated fair value of investment securities as of March 31, 2022 and June 30, 2021 were as follows:


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
March 31, 2022		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS⁽¹⁾		$	191,074		$	270		$	(9,890)		$	181,454		$	191,074
U.S. government sponsored enterprise CMO⁽²⁾			2,955			—			(74)			2,881			2,955
U.S. SBA securities⁽³⁾			950			7			—			957			950
Certificate of deposits			600			—			—			600			600
Total investment securities - held to maturity		$	195,579		$	277		$	(9,964)		$	185,892		$	195,579

Available for sale
U.S. government agency MBS		$	1,793		$	39		$	—		$	1,832		$	1,832
U.S. government sponsored enterprise MBS			969			8			—			977			977
Private issue CMO⁽²⁾			135			—			—			135			135
Total investment securities - available for sale		$	2,897		$	47		$	—		$	2,944		$	2,944
Total investment securities		$	198,476		$	324		$	(9,964)		$	188,836		$	198,523

(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 the third quarter of fiscal 2022 and 2021, the Corporation received MBS principal payments of $12.3 million and $15.0 million, respectively, and there were no sales of investment securities during these periods. The Corporation purchased $3.0 million of U.S. government sponsored enterprise CMO to be held to maturity in the third quarter of fiscal 2022 and purchased $51.6 million of U.S. government sponsored enterprise MBS to be held to maturity in the third quarter of fiscal 2021.

For the first nine months of fiscal 2022 and 2021, the Corporation received MBS principal payments of $44.8 million and $36.8 million, respectively, and there were no sales of investment securities during these periods. The Corporation purchased $15.2 million of U.S. government sponsored enterprise MBS and $3.0 million of U.S. government sponsored enterprise CMO to be held to maturity in the first nine months of fiscal 2022 and purchased $158.0 million of U.S. government sponsored enterprise MBS to be held to maturity in the same period of fiscal 2021.

The Corporation held investments with an unrealized loss position of $10.0 million at March 31, 2022 and $810,000 at June 30, 2021.


As of March 31, 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		$	126,029		$	6,534		$	38,467		$	3,356		$	164,496		$	9,890
U.S. government sponsored enterprise CMO			2,881			74			—			—			2,881			74
Total investment securities - held to maturity		$	128,910		$	6,608		$	38,467		$	3,356		$	167,377		$	9,964

Total investment securities		$	128,910		$	6,608		$	38,467		$	3,356		$	167,377		$	9,964


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

The Corporation evaluates individual investment securities quarterly for other-than-temporary declines in market value. At March 31, 2022, $3.4 million of the $10.0 million of unrealized holding losses were 12 months or more; while at June 30, 2021, none of the $810,000 of unrealized holding losses were 12 months or more. The unrealized losses on investment securities were attributable to changes in interest rates, relative to when the investment securities were purchased, and not due to the credit quality of the investment securities. At March 31, 2022 and 2021, the Corporation did not have any investment securities with the intent to sell and determined it was more likely than not that the Corporation would not be required to sell the securities prior to recovery of the amortized cost basis; therefore, no impairment losses were recorded for the quarters and nine months ended March 31, 2022 and 2021.

Contractual maturities of investment securities as of March 31, 2022 and June 30, 2021 were as follows:


		March 31, 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		$	1,237		$	1,229		$	1,209		$	1,218
Due after one through five years			12,546			12,541			14,544			15,179
Due after five through ten years			81,622			77,986			90,798			91,780
Due after ten years			100,174			94,136			116,755			116,544
Total investment securities - held to maturity		$	195,579		$	185,892		$	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			71			71			—			—
Due after ten years			2,826			2,873			3,494			3,587
Total investment securities - available for sale		$	2,897		$	2,944		$	3,494		$	3,587
Total investment securities		$	198,476		$	188,836		$	226,800		$	228,308