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Investment Securities

6 Months Ended

Dec. 31, 2022

Investment Securities

Investment Securities

Note 4: Investment Securities

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


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
December 31, 2022		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS⁽¹⁾		$	163,612		$	—		$	(19,500)		$	144,112		$	163,612
U.S. government sponsored enterprise CMO⁽²⁾			3,907			—			(313)			3,594			3,907
U.S. SBA securities⁽³⁾			713			—			—			713			713
Total investment securities - held to maturity			168,232			—			(19,813)			148,419			168,232

Available for sale
U.S. government agency MBS			1,569			—			(36)			1,533			1,533
U.S. government sponsored enterprise MBS			754			—			(12)			742			742
Private issue CMO			110			—			(8)			102			102
Total investment securities - available for sale			2,433			—			(56)			2,377			2,377
Total investment securities		$	170,665		$	—		$	(19,869)		$	150,796		$	170,609

(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
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			1,698			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 the second quarters of fiscal 2023 and 2022, the Corporation received MBS principal payments of $7.6 million and $15.5 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the second quarter of fiscal 2023; while in the second quarter of fiscal 2022, the Corporation purchased $15.0 million of U.S. government sponsored enterprise MBS to be held to maturity.

For the first six months of fiscal 2023 and 2022, the Corporation received MBS principal payments of $16.9 million and $32.5 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the first six months of fiscal 2023, while in the first six months of fiscal 2022, the Corporation purchased $15.0 million of U.S. government sponsored enterprise MBS to be held to maturity.

The Corporation held investments with an unrealized loss position of $19.9 million at December 31, 2022 and $14.1 million at June 30, 2022.


As of December 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		$	15,934		$	369		$	128,178		$	19,131		$	144,112		$	19,500
U.S. government sponsored enterprise CMO			3,594			313			—			—			3,594			313
Total investment securities - held to maturity			19,528			682			128,178			19,131			147,706			19,813

Available for sale
U.S government agency MBS			1,533			36			—			—			1,533			36
U.S. government sponsored enterprise MBS			669			11			22			1			691			12
Private issue CMO			102			8			—			—			102			8
Total investment securities - available for sale			2,304			55			22			1			2,326			56
Total investment securities		$	21,832		$	737			128,200		$	19,132		$	150,032		$	19,869


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 in market value. At December 31, 2022, $19.1 million of the $19.9 million of unrealized holding losses were 12 months or more; while at June 30, 2022, $4.9 million of the $14.1 million 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 December 31, 2022 and 2021, the Corporation did not hold 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, n/o impairment losses were recorded for the quarters and six months ended December 31, 2022 and 2021.

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


		December 31, 2022						June 30, 2022
					Estimated						Estimated
		Amortized			Fair			Amortized			Fair
(In Thousands)		Cost			Value			Cost			Value
Held to maturity
Due in one year or less		$	1,209		$	1,198		$	1,427		$	1,425
Due after one through five years			7,405			7,129			10,908			10,805
Due after five through ten years			69,583			62,622			77,167			72,625
Due after ten years			90,035			77,470			96,243			86,869
Total investment securities - held to maturity			168,232			148,419			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			233			229			98			98
Due after ten years			2,200			2,148			2,583			2,578
Total investment securities - available for sale			2,433			2,377			2,681			2,676
Total investment securities		$	170,665		$	150,796		$	188,426		$	174,400