Investment Securities

3 Months Ended

Sep. 30, 2022

Investment Securities

Investment Securities

Note 4: Investment Securities

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

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
September 30, 2022	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS(1)	$	171,331	$	6	$	(21,346)	$	149,991	$	171,331
U.S. government sponsored enterprise CMO(2)		3,911		—		(317)		3,594		3,911
U.S. SBA securities(3)		720		1		—		721		720
Certificate of deposits		200		—		—		200		200
Total investment securities - held to maturity	$	176,162	$	7	$	(21,663)	$	154,506	$	176,162
Available for sale
U.S. government agency MBS	$	1,629	$	—	$	(19)	$	1,610	$	1,610
U.S. government sponsored enterprise MBS		808		2		(10)		800		800
Private issue CMO		112		—		(5)		107		107
Total investment securities - available for sale	$	2,549	$	2	$	(34)	$	2,517	$	2,517
Total investment securities	$	178,711	$	9	$	(21,697)	$	157,023	$	178,679

(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 first quarter of fiscal 2023 and 2022, the Corporation received MBS principal payments of $9.3 million and $17.0 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase or sell any investment securities in the first quarter of fiscal 2023 and 2022.

The Corporation held investments with an unrealized loss position of $21.7 million at September 30, 2022 and $14.1 million at June 30, 2022.

As of September 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	$	45,920	$	4,527	$	100,612	$	16,819	$	146,532	$	21,346
U.S. government sponsored enterprise CMO		3,594		317		—		—		3,594		317
Total investment securities - held to maturity	$	49,514	$	4,844	$	100,612	$	16,819	$	150,126	$	21,663
Available for sale
U.S government agency MBS	$	1,412	$	19	$	—	$	—	$	1,412	$	19
U.S. government sponsored enterprise MBS		659		10		—		—		659		10
Private issue CMO		107		5		—		—		107		5
Total investment securities - available for sale	$	2,178	$	34	$	—	$	—	$	2,178	$	34
Total investment securities	$	51,692	$	4,878		100,612	$	16,819	$	152,304	$	21,697

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 September 30, 2022, $16.8 million of the $21.7 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 September 30, 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, no impairment losses were recorded for the quarters ended September 30, 2022 and 2021.

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

	September 30, 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	$	1,212	$	1,205	$	1,427	$	1,425
Due after one through five years		9,107		8,806		10,908		10,805
Due after five through ten years		73,049		65,351		77,167		72,625
Due after ten years		92,794		79,144		96,243		86,869
Total investment securities - held to maturity	$	176,162	$	154,506	$	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		202		200		98		98
Due after ten years		2,347		2,317		2,583		2,578
Total investment securities - available for sale	$	2,549	$	2,517	$	2,681	$	2,676
Total investment securities	$	178,711	$	157,023	$	188,426	$	174,400