Investment Securities

3 Months Ended

Sep. 30, 2021

Investment Securities

Investment Securities

Note 4: Investment Securities

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

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
September 30, 2021	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS(1)	$	203,749	$	1,689	$	(1,101)	$	204,337	$	203,749
U.S. SBA securities(2)		1,272		11		—		1,283		1,272
Certificate of deposits		800		—		—		800		800
Total investment securities - held to maturity	$	205,821	$	1,700	$	(1,101)	$	206,420	$	205,821
Available for sale
U.S. government agency MBS	$	1,993	$	69	$	—	$	2,062	$	2,062
U.S. government sponsored enterprise MBS		1,091		13		—		1,104		1,104
Private issue CMO(3)		147		3		—		150		150
Total investment securities - available for sale	$	3,231	$	85	$	—	$	3,316	$	3,316
Total investment securities	$	209,052	$	1,785	$	(1,101)	$	209,736	$	209,137

(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, 2021	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS	$	220,448	$	2,209	$	(810)	$	221,847	$	220,448
U.S. SBA securities		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		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

In the first quarter of fiscal 2022 and 2021, the Corporation received MBS principal payments of $17.0 million and $9.4 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the first quarter of fiscal 2022 but purchased $84.9 million of U.S. government sponsored enterprise MBS to be held to maturity in the first quarter of fiscal 2021.

The Corporation held investments with an unrealized loss position of $1.1 million at September 30, 2021 and $810,000 at June 30, 2021.

As of September 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	$	119,650	$	746	$	8,787	$	355	$	128,437	$	1,101
Total investment securities - held to maturity	$	119,650	$	746	$	8,787	$	355	$	128,437	$	1,101
Total investment securities	$	119,650	$	746	$	8,787	$	355	$	128,437	$	1,101

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
U.S. SBA securities		—		—		—		—		—		—
Total investment securities - held to maturity	$	84,600	$	810	$	—	$	—	$	84,600	$	810
Total investment securities	$	84,600	$	810	$	—	$	—	$	84,600	$	810

The Corporation evaluates individual investment securities quarterly for other-than-temporary declines in market value. At September 30, 2021, $355,000 of the $1.1 million of unrealized holding losses were 12 months or more; while at June 30, 2021, none of the $810,000 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 September 30, 2021 and 2020, 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, 2021 and 2020.

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

	September 30, 2021				June 30, 2021
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
(In Thousands)	Cost		Value		Cost		Value
Held to maturity
Due in one year or less	$	1,136	$	1,152	$	1,209	$	1,218
Due after one through five years		13,141		13,696		14,544		15,179
Due after five through ten years		82,772		83,286		90,798		91,780
Due after ten years		108,772		108,286		116,755		116,544
Total investment securities - held to maturity	$	205,821	$	206,420	$	223,306	$	224,721
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		3,231		3,316		3,494		3,587
Total investment securities - available for sale	$	3,231	$	3,316	$	3,494	$	3,587
Total investment securities	$	209,052	$	209,736	$	226,800	$	228,308