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v3.23.2

Investment Securities | 12 Months Ended
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Jun. 30, 2023
Investment Securities |
Investment Securities | Note 2: Investment Securities ​ The amortized cost and estimated fair value of investment securities as of June 30, 2023 and 2022 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ |  |  | ​ |  | Gross |  | Gross |  | Estimated |  | ​
​ | ​ | Amortized | ​ | Unrealized | ​ | Unrealized | ​ | Fair | ​ | Carrying
June 30, 2023 | ​ | Cost | ​ | Gains | ​ | (Losses) | ​ | Value | ​ | Value
(In Thousands) |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Held to maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. government sponsored enterprise MBS(1) | ​ | $ | 149,803 | ​ | $ | — | ​ | $ | (18,459) | ​ | $ | 131,344 | ​ | $ | 149,803
U.S. government sponsored enterprise CMO(2) | ​ | ​ | 3,883 | ​ | ​ | — | ​ | ​ | (336) | ​ | ​ | 3,547 | ​ | ​ | 3,883
U.S. SBA securities(3) | ​ |  | 651 | ​ |  | — | ​ |  | (1) | ​ |  | 650 | ​ |  | 651
Total investment securities - held to maturity | ​ | ​ | 154,337 | ​ | ​ | — | ​ | ​ | (18,796) | ​ | ​ | 135,541 | ​ | ​ | 154,337
​ | ​ |  |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Available for sale | ​ |  |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
U.S. government agency MBS(1) | ​ | ​ | 1,417 | ​ | ​ | — | ​ | ​ | (47) | ​ | ​ | 1,370 | ​ | ​ | 1,370
U.S. government sponsored enterprise MBS(1) | ​ |  | 697 | ​ | ​ | — | ​ | ​ | (14) | ​ | ​ | 683 | ​ | ​ | 683
Private issue CMO(2) | ​ |  | 103 | ​ | ​ | — | ​ | ​ | (1) | ​ | ​ | 102 | ​ | ​ | 102
Total investment securities - available for sale | ​ | ​ | 2,217 | ​ | ​ | — | ​ | ​ | (62) | ​ | ​ | 2,155 | ​ | ​ | 2,155
Total investment securities | ​ | $ | 156,554 | ​ | $ | — | ​ | $ | (18,858) | ​ | $ | 137,696 | ​ | $ | 156,492
​
(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, 2022 | ​ | Cost | ​ | Gains | ​ | (Losses) | ​ | Value | ​ | Value
(In Thousands) |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Held to maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
U.S. government sponsored enterprise MBS | ​ | $ | 180,492 | ​ | $ | 63 | ​ | $ | (13,945) | ​ | $ | 166,610 | ​ | $ | 180,492
U.S. government sponsored enterprise CMO | ​ | ​ | 3,913 | ​ | ​ | — | ​ | ​ | (150) | ​ | ​ | 3,763 | ​ | ​ | 3,913
U.S. SBA securities | ​ |  | 940 | ​ |  | 11 | ​ |  | — | ​ |  | 951 | ​ |  | 940
Certificates of deposit | ​ |  | 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 | ​ | ​ | 1,698 | ​ | ​ | 6 | ​ | ​ | (6) | ​ | ​ | 1,698 | ​ | ​ | 1,698
U.S. government sponsored enterprise MBS | ​ | ​ | 865 | ​ | ​ | 4 | ​ | ​ | (4) | ​ | ​ | 865 | ​ | ​ | 865
Private issue CMO | ​ | ​ | 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
​ In fiscal 2023 and 2022, the Corporation received principal payments from its investment securities of $30.7 million and $55.3 million, respectively and did not sell any investment securities. The Corporation did not purchase any investment securities in fiscal 2023, while in fiscal 2022, the Corporation purchased investment securities totaling $19.0 million. ​ As of June 30, 2023 and 2022, the Corporation held investments with an unrealized loss position of $18.9 million and $14.1 million, respectively. ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
As of June 30, 2023 | ​ | 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 | ​ | $ | 10,839 | ​ | $ | 253 | ​ | $ | 120,506 | ​ | $ | 18,206 | ​ | $ | 131,345 | ​ | $ | 18,459
U.S. government sponsored enterprise CMO | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 3,547 | ​ | ​ | 336 | ​ | ​ | 3,547 | ​ | ​ | 336
U.S. SBA securities | ​ | ​ | 650 | ​ | $ | 1 | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 650 | ​ | ​ | 1
Total investment securities - held to maturity | ​ | ​ | 11,489 | ​ | ​ | 254 | ​ | ​ | 124,053 | ​ | ​ | 18,542 | ​ | ​ | 135,542 | ​ | ​ | 18,796
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
Available for sale | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
U.S government agency MBS | ​ | ​ | 696 | ​ | ​ | 20 | ​ | ​ | 673 | ​ | ​ | 27 | ​ | ​ | 1,369 | ​ | ​ | 47
U.S. government sponsored enterprise MBS | ​ | ​ | 87 | ​ | ​ | 2 | ​ | ​ | 558 | ​ | ​ | 12 | ​ | ​ | 645 | ​ | ​ | 14
Private issue CMO | ​ | ​ | — | ​ | ​ | — | ​ | ​ | 102 | ​ | ​ | 1 | ​ | ​ | 102 | ​ | ​ | 1
Total investment securities - available for sale | ​ | ​ | 783 | ​ | ​ | 22 | ​ | ​ | 1,333 | ​ | ​ | 40 | ​ | ​ | 2,116 | ​ | ​ | 62
Total investment securities | ​ | $ | 12,272 | ​ | $ | 276 | ​ | $ | 125,386 | ​ | $ | 18,582 | ​ | $ | 137,658 | ​ | $ | 18,858
​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
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
​ The Corporation evaluates individual investment securities quarterly for other-than-temporary impairment. At June 30, 2023, $18.6 million of the $18.9 million of unrealized holding losses were in a loss position for 12 months or more; while at June 30, 2022, $4.9 million of the $14.1 million of unrealized holding losses were in a loss position for 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; which are predominately U.S. government sponsored enterprise (GSE) securities. The Corporation performs an analysis of evaluating factors such as cash and working capital requirements, contractual and regulatory obligations, and specific company/industry considerations. Based on its analysis, the Corporation has determined that the unrealized losses are temporary in nature due to the fluctuating nature of interest rates, as well as the Corporation’s intent and ability to hold these investments until maturity. As a part of the Corporation’s monthly risk assessment, the Corporation runs a number of stressed liquidity scenarios. These liquidity scenarios support the Corporation’s assessment that the Corporation has the ability to hold these securities until maturity and does not need to liquidate these investment securities in order to maintain adequate liquidity. In order to maintain adequate liquidity, the Bank has established borrowing facilities with various counterparties. The Bank had a remaining borrowing capacity of $287.9 million as of June 30, 2023 at the Federal Home Loan Bank of San Francisco. In addition, the Bank has secured an estimated $139.0 million discount window facility at the Federal Reserve Bank of San Francisco collateralized by investment securities with June 30, 2023 balances of $150.3 million. As of June 30, 2023, the Bank also has a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The total available borrowing capacity across all sources totals approximately $476.9 million at June 30, 2023. The Bank had no advances under the Federal Reserve Bank of San Francisco discount window or correspondent bank facility as of June 30, 2023. At June 30, 2022, the Bank had a remaining borrowing capacity of $310.3 million at the Federal Home Loan Bank of San Francisco. In addition, the Bank had secured an estimated $153.9 million discount window facility at the Federal Reserve Bank of San Francisco collateralized by investment securities with June 30, 2022 balances of $180.6 million. As of June 30, 2022, the Bank also had a borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The total available borrowing capacity across all sources totals approximately $514.2 million at June 30, 2022. The Bank had no advances under the Federal Reserve Bank of San Francisco discount window or correspondent bank facility as of June 30, 2022. At June 30, 2023 and 2022, the Corporation did not hold any investment securities with the intent to sell and determined it had the ability to hold these investment securities until maturity. It also determined that 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 fiscal years ended June 30, 2023 and 2022. ​ Contractual maturities of investment securities as of June 30, 2023 and 2022 were as follows: ​
​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​ | ​
​ | ​ | June 30, 2023 | ​ | June 30, 2022
​ |  | ​ | ​ |  | Estimated |  | ​ | ​ |  | Estimated
​ | ​ | Amortized | ​ | Fair | ​ | Amortized | ​ | Fair
(In Thousands) | ​ | Cost | ​ | Value | ​ | Cost | ​ | Value
Held to maturity |  | ​ |  |  | ​ |  |  | ​ |  |  | ​ |
Due in one year or less | ​ | $ | 303 | ​ | $ | 300 | ​ | $ | 1,427 | ​ | $ | 1,425
Due after one through five years | ​ |  | 7,686 | ​ |  | 7,365 | ​ |  | 10,908 | ​ |  | 10,805
Due after five through ten years | ​ |  | 61,043 | ​ |  | 54,686 | ​ |  | 77,167 | ​ |  | 72,625
Due after ten years | ​ |  | 85,305 | ​ |  | 73,190 | ​ |  | 96,243 | ​ |  | 86,869
Total investment securities - held to maturity | ​ | ​ | 154,337 | ​ | ​ | 135,541 | ​ | ​ | 185,745 | ​ | ​ | 171,724
​ | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Available for sale | ​ | ​ |  | ​ | ​ |  | ​ | ​ |  | ​ | ​ |
Due in one year or less | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Due after one through five years | ​ | ​ | — | ​ | ​ | — | ​ | ​ | — | ​ | ​ | —
Due after five through ten years | ​ | ​ | 590 | ​ | ​ | 580 | ​ | ​ | 98 | ​ | ​ | 98
Due after ten years | ​ | ​ | 1,627 | ​ | ​ | 1,575 | ​ | ​ | 2,583 | ​ | ​ | 2,578
Total investment securities - available for sale | ​ | ​ | 2,217 | ​ | ​ | 2,155 | ​ | ​ | 2,681 | ​ | ​ | 2,676
Total investment securities | ​ | $ | 156,554 | ​ | $ | 137,696 | ​ | $ | 188,426 | ​ | $ | 174,400
​

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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