Note 4: Investment Securities

The amortized cost and estimated fair value of investment securities as of September 30, 2020 and June 30, 2020 were as follows:


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
September 30, 2020	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity:
U.S. government sponsored enterprise MBS (1)	$	191,224	$	2,844	$	(147)	$	193,921	$	191,224
U.S. SBA securities (2)		2,044		—		(18)		2,026		2,044
Certificate of deposits		600		—		—		600		600
Total investment securities - held to maturity	$	193,868	$	2,844	$	(165)	$	196,547	$	193,868

Available for sale:
U.S. government agency MBS	$	2,612	$	114	$	—	$	2,726	$	2,726
U.S. government sponsored enterprise MBS		1,489		17		—		1,506		1,506
Private issue CMO (3)		188		—		(4)		184		184
Total investment securities - available for sale	$	4,289	$	131	$	(4)	$	4,416	$	4,416
Total investment securities	$	198,157	$	2,975	$	(169)	$	200,963	$	198,284

⁽¹⁾

Mortgage-Backed Securities ("MBS").

⁽²⁾

Small Business Administration ("SBA").

⁽³⁾

Collateralized Mortgage Obligations ("CMO").


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
June 30, 2020	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS	$	115,763	$	2,636	$	(45)	$	118,354	$	115,763
U.S. SBA securities		2,064		—		(17)		2,047		2,064
Certificate of deposits		800		—		—		800		800
Total investment securities - held to maturity	$	118,627	$	2,636	$	(62)	$	121,201	$	118,627

Available for sale
U.S. government agency MBS	$	2,823	$	120	$	—	$	2,943	$	2,943
U.S. government sponsored enterprise MBS		1,556		21		—		1,577		1,577
Private issue CMO		204		—		(7)		197		197
Total investment securities - available for sale	$	4,583	$	141	$	(7)	$	4,717	$	4,717
Total investment securities	$	123,210	$	2,777	$	(69)	$	125,918	$	123,344

In the first quarter of fiscal 2021 and 2020, the Corporation received MBS principal payments of $9.4 million and $9.3 million, respectively, and there were no sales of investment securities during these periods. The Corporation purchased $84.9 million of U.S. government sponsored enterprise MBS to be held to maturity in the first quarter of fiscal 2021 but did not purchase any investment securities in the first quarter of fiscal 2020.

The Corporation held investments with an unrealized loss position of $169,000 at September 30, 2020 and $69,000 at June 30, 2020.


	Unrealized Holding				Unrealized Holding				Unrealized Holding
As of September 30, 2020	Losses				Losses				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	$	63,446	$	147	$	—	$	—	$	63,446	$	147
U.S. SBA securities		—	$	—		2,026		18		2,026		18
Total investment securities - held to maturity	$	63,446	$	147	$	2,026	$	18	$	65,472	$	165

Available for sale

Private issue CMO	$	184	$	4	$	—	$	—	$	184	$	4
Total investment securities – available for sale	$	184	$	4	$	—	$	—	$	184	$	4
Total investment securities	$	63,630	$	151	$	2,026	$	18	$	65,656	$	169


	Unrealized Holding				Unrealized Holding				Unrealized Holding
As of June 30, 2020	Losses				Losses				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	$	12,731	$	45	$	—	$	—	$	12,731	$	45
U.S. SBA securities		—	$	—		2,040		17		2,040		17
Total investment securities - held to maturity	$	12,731	$	45	$	2,040	$	17	$	14,771	$	62

Available for sale
Private issue CMO	$	197	$	7	$	—	$	—	$	197	$	7
Total investment securities - available for sale	$	197	$	7	$	—	$	—	$	197	$	7
Total investment securities	$	12,928	$	52	$	2,040	$	17	$	14,968	$	69

The Corporation evaluates individual investment securities quarterly for other-than-temporary declines in market value. At September 30, 2020, $18,000 of the $169,000 unrealized holding losses were 12 months or more; while at June 30, 2020, $17,000 of the $69,000 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 September 30, 2020 and 2019, 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 quarter ended September 30, 2020 and 2019.

Contractual maturities of investment securities as of September 30, 2020 and June 30, 2020 were as follows:


	September 30, 2020				June 30, 2020
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
(In Thousands)	Cost		Value		Cost		Value

Held to maturity:
Due in one year or less	$	600	$	600	$	800	$	800
Due after one through five years		21,057		21,956		19,389		20,194
Due after five through ten years		69,215		70,425		50,895		52,315
Due after ten years		102,996		103,566		47,543		47,892
Total investment securities - held to maturity	$	193,868	$	196,547	$	118,627	$	121,201

Available for sale:
Due in one year or less	$	—	$	—	$	—	$	—
Due after one through five years		—		—		—		—
Due after five through ten years		—		—		—		—
Due after ten years		4,289		4,416		4,583		4,717
Total investment securities - available for sale	$	4,289	$	4,416	$	4,583	$	4,717
Total investment securities	$	198,157	$	200,963	$	123,210	$	125,918