Investment Securities

6 Months Ended

Dec. 31, 2022

Investment Securities

Investment Securities

Note 4: Investment Securities

The amortized cost and estimated fair value of investment securities as of December 31, 2022 and June 30, 2022 were as follows:

			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair		Carrying
December 31, 2022	Cost		Gains		(Losses)		Value		Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS(1)	$	163,612	$	—	$	(19,500)	$	144,112	$	163,612
U.S. government sponsored enterprise CMO(2)		3,907		—		(313)		3,594		3,907
U.S. SBA securities(3)		713		—		—		713		713
Total investment securities - held to maturity		168,232		—		(19,813)		148,419		168,232
Available for sale
U.S. government agency MBS		1,569		—		(36)		1,533		1,533
U.S. government sponsored enterprise MBS		754		—		(12)		742		742
Private issue CMO		110		—		(8)		102		102
Total investment securities - available for sale		2,433		—		(56)		2,377		2,377
Total investment securities	$	170,665	$	—	$	(19,869)	$	150,796	$	170,609

(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 second quarters of fiscal 2023 and 2022, the Corporation received MBS principal payments of $7.6 million and $15.5 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the second quarter of fiscal 2023; while in the second quarter of fiscal 2022, the Corporation purchased $15.0 million of U.S. government sponsored enterprise MBS to be held to maturity.

For the first six months of fiscal 2023 and 2022, the Corporation received MBS principal payments of $16.9 million and $32.5 million, respectively, and there were no sales of investment securities during these periods. The Corporation did not purchase any investment securities in the first six months of fiscal 2023, while in the first six months of fiscal 2022, the Corporation purchased $15.0 million of U.S. government sponsored enterprise MBS to be held to maturity.

The Corporation held investments with an unrealized loss position of $19.9 million at December 31, 2022 and $14.1 million at June 30, 2022.

As of December 31, 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	$	15,934	$	369	$	128,178	$	19,131	$	144,112	$	19,500
U.S. government sponsored enterprise CMO		3,594		313		—		—		3,594		313
Total investment securities - held to maturity		19,528		682		128,178		19,131		147,706		19,813
Available for sale
U.S government agency MBS		1,533		36		—		—		1,533		36
U.S. government sponsored enterprise MBS		669		11		22		1		691		12
Private issue CMO		102		8		—		—		102		8
Total investment securities - available for sale		2,304		55		22		1		2,326		56
Total investment securities	$	21,832	$	737		128,200	$	19,132	$	150,032	$	19,869

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 December 31, 2022, $19.1 million of the $19.9 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 December 31, 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, n/o impairment losses were recorded for the quarters and six months ended December 31, 2022 and 2021.

Contractual maturities of investment securities as of December 31, 2022 and June 30, 2022 were as follows:

	December 31, 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	$	1,209	$	1,198	$	1,427	$	1,425
Due after one through five years		7,405		7,129		10,908		10,805
Due after five through ten years		69,583		62,622		77,167		72,625
Due after ten years		90,035		77,470		96,243		86,869
Total investment securities - held to maturity		168,232		148,419		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		233		229		98		98
Due after ten years		2,200		2,148		2,583		2,578
Total investment securities - available for sale		2,433		2,377		2,681		2,676
Total investment securities	$	170,665	$	150,796	$	188,426	$	174,400