Investment Securities

12 Months Ended

Jun. 30, 2021

Investment Securities

Investment Securities

Note 2: Investment Securities

The amortized cost and estimated fair value of investment securities as of June 30, 2021 and 2020 were as follows:

			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(1)	$	220,448	$	2,209	$	(810)	$	221,847	$	220,448
U.S. SBA securities(2)		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(3)		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

(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 fiscal 2021 and 2020, the Corporation received MBS principal payments of $52.6 million and $32.1 million, respectively and did not sell any investment securities.  The Corporation purchased MBS totaling $158.0 million and $55.9 million during fiscal 2021 and 2020, respectively.

As of June 30, 2021 and 2020, the Corporation held investments with an unrealized loss position of $810,000 and $69,000, respectively.

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

As of June 30, 2020	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	$	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

As of June 30, 2021, the Corporation had investment securities with unrealized holding losses of $810,000 that were less than 12 months and none that were in an unrealized loss position for more than 12 months, as compared to investment securities at June 30, 2020 with unrealized holding losses of $52,000 that were less than 12 months and $17,000 that were in an unrealized loss position for more than 12 months. The unrealized loss at June 30, 2021 was attributable to 16 U.S. government sponsored enterprise MBS and, based on the nature of the investments, management concluded that such unrealized losses were not other than temporary. The unrealized loss at June 30, 2020 was attributable to two U.S. government agency MBS, one U.S. SBA security and three private issue CMOs, and, based on the nature of the investments, management concluded that such unrealized losses were not other than temporary.  The Corporation does not believe that there was any OTTI at June 30, 2021 and 2020.  At each of these dates, the Corporation intended and had the ability to hold the investment securities and was not likely to be required to sell the securities before realizing a full recovery.

Contractual maturities of investment securities as of June 30, 2021 and 2020 were as follows:

	June 30, 2021				June 30, 2020
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
(In Thousands)	Cost		Value		Cost		Value
Held to maturity
Due in one year or less	$	1,209	$	1,218	$	800	$	800
Due after one through five years		14,544		15,179		19,389		20,194
Due after five through ten years		90,798		91,780		50,895		52,315
Due after ten years		116,755		116,544		47,543		47,892
Total investment securities - held to maturity	$	223,306	$	224,721	$	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		3,494		3,587		4,583		4,717
Total investment securities - available for sale	$	3,494	$	3,587	$	4,583	$	4,717
Total investment securities	$	226,800	$	228,308	$	123,210	$	125,918