XML 25 R12.htm IDEA: XBRL DOCUMENT

Investment Securities

3 Months Ended

Sep. 30, 2025

Investment Securities

Investment Securities

Note 4: Investment Securities

The amortized cost and estimated fair value of investment securities as of September 30, 2025 and June 30, 2025 were as follows:


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
September 30, 2025		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS⁽¹⁾		$	99,154		$	124		$	(9,284)		$	89,994		$	99,154
U.S. government sponsored enterprise CMO⁽²⁾			4,466			18			(78)			4,406			4,466
U.S. SBA securities⁽³⁾			257			—			(3)			254			257
Total investment securities - held to maturity			103,877			142			(9,365)			94,654			103,877

Available for sale
U.S. government agency MBS⁽¹⁾			1,027			11			—			1,038			1,038
U.S. government sponsored enterprise MBS⁽¹⁾			422			9			—			431			431
Private issue CMO⁽²⁾			75			—			—			75			75
Total investment securities - available for sale			1,524			20			—			1,544			1,544
Total investment securities		$	105,401		$	162		$	(9,365)		$	96,198		$	105,421

(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, 2025		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS		$	104,549		$	127		$	(10,305)		$	94,371		$	104,549
U.S. government sponsored enterprise CMO			4,525			14			(108)			4,431			4,525
U.S. SBA securities			325			—			(1)			324			325
Total investment securities - held to maturity			109,399			141			(10,414)			99,126			109,399

Available for sale
U.S. government agency MBS			1,072			10			—			1,082			1,082
U.S. government sponsored enterprise MBS			436			10			—			446			446
Private issue CMO			79			—			—			79			79
Total investment securities - available for sale			1,587			20			—			1,607			1,607
Total investment securities		$	110,986		$	161		$	(10,414)		$	100,733		$	111,006

In the first quarter of fiscal 2026 and 2025, the Corporation received MBS principal payments of $5.5 million and $5.7 million, respectively, and there were no purchases or sales of investment securities during both periods.

The Corporation held investments with an unrealized loss position of $9.4 million at September 30, 2025 and $10.4 million at June 30, 2025 as follows:


As of September 30, 2025		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		$	—		$	—		$	85,978		$	9,284		$	85,978		$	9,284
U.S. government sponsored enterprise CMO			—			—			3,405			78			3,405			78
U.S. SBA securities			—			—			255			3			255			3
Total investment securities - held to maturity			—			—			89,638			9,365			89,638			9,365

Available for sale
U.S government agency MBS			37			—			13			—			50			—
Private issue CMO			—			—			16			—			16			—
Total investment securities - available for sale			37			—			29			—			66			—
Total investment securities		$	37		$	—			89,667		$	9,365		$	89,704		$	9,365


As of June 30, 2025		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		$	—		$	—		$	90,022		$	10,305		$	90,022		$	10,305
U.S. government sponsored enterprise CMO			—			—			3,435			108			3,435			108
U.S. SBA securities			324			1			—			—			324			1
Total investment securities - held to maturity			324			1			93,457			10,413			93,781			10,414

Available for sale
U.S government agency MBS			37			—			13			—			50			—
Private issue CMO			—			—			17			—			17			—
Total investment securities - available for sale			37			—			30			—			67			—
Total investment securities		$	361		$	1		$	93,487		$	10,413		$	93,848		$	10,414

On a quarterly basis, the Corporation evaluates the allowance for credit losses for its investment securities held to maturity and the credit losses for its investment securities held for sale based on Accounting Standards Codification (“ASC”) 326, “Financial Instruments – Credit Losses.” At September 30, 2025, all of the $9.4 million of unrealized holding losses were in a loss position for 12 months or more; while at June 30, 2025, all $10.4 million of unrealized holding losses were in a loss position for 12 months or more, except $1,000 of unrealized holding losses that were in a loss position for less than 12 months. 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 securities that are either explicitly or implicitly guaranteed by the U.S. government and have a long history of no credit losses. Therefore, the Corporation has determined that the unrealized

losses are due to the fluctuating nature of interest rates, and not related to any potential credit risks within the investment portfolio. The Bank does not currently intend to sell any investment securities classified as held to maturity recorded at amortized cost or available for sale recorded at fair market value as prescribed by GAAP. As part of the Corporation’s monthly risk assessment, the Corporation prepares a number of stressed liquidity scenarios to determine if it is more likely than not that the Bank will be required to sell the investment securities before the recovery of its amortized cost basis. The results of these liquidity scenarios support the Corporation’s assessment that the Corporation has the ability to hold these held to maturity securities until maturity or available for sale securities until recovery of the amortized cost is realized and it is not more likely than not that the Corporation will be required to sell the securities prior to recovery of the amortized cost. There was no allowance for credit losses (“ACL”) on investment securities held to maturity and there was no impairment of investment securities available for sale at September 30, 2025 and June 30, 2025.

In order to maintain adequate liquidity, the Bank has established borrowing facilities with various counterparties. As of September 30, 2025, the Bank had a remaining borrowing capacity of $279.0 million at the FHLB of San Francisco and an estimated $143.3 million discount window facility at the FRB of San Francisco, collateralized by investment securities totaling $23.0 million and loans held for investment totaling $221.4 million. In addition, the Bank also has an unsecured borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under the Federal Reserve discount window or correspondent bank facility as of September 30, 2025. The total remaining available borrowing capacity across all sources totaled approximately $472.3 million at September 30, 2025.

At June 30, 2025, the Bank had a remaining borrowing capacity of $282.3 million at the FHLB of San Francisco and an estimated $142.5 million discount window facility at the FRB of San Francisco, collateralized by investment securities totaling $24.8 million and loans held for investment totaling $227.0 million. In addition, the Bank also had an unsecured borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under the Federal Reserve discount window or the correspondent bank facility as of June 30, 2025. The total remaining available borrowing capacity across all sources totaled approximately $474.8 million at June 30, 2025.

Contractual maturities of investment securities as of September 30, 2025 and June 30, 2025 were as follows:


		September 30, 2025						June 30, 2025
					Estimated						Estimated
		Amortized			Fair			Amortized			Fair
(In Thousands)		Cost			Value			Cost			Value
Held to maturity
Due in one year or less		$	250		$	248		$	69		$	68
Due after one through five years			11,683			11,187			4,921			4,760
Due after five through ten years			48,290			44,598			40,773			38,224
Due after ten years			43,654			38,621			63,636			56,074
Total investment securities - held to maturity			103,877			94,654			109,399			99,126

Available for sale
Due in one year or less			—			—			—			—
Due after one through five years			—			—			—			—
Due after five through ten years			1,421			1,440			1,483			1,501
Due after ten years			103			104			104			106
Total investment securities - available for sale			1,524			1,544			1,587			1,607
Total investment securities		$	105,401		$	96,198		$	110,986		$	100,733