Securities (Tables)

3 Months Ended

Sep. 30, 2023

Securities [Abstract]

Amortized Cost and Fair Value of Securities Available-for-Sale

The following tables summarize the amortized cost and fair value of securities available-for-sale by major type:

	At September 30, 2023
(In thousands)	Amortized Cost (1)		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	13,051	$	-	$	2,584	$	10,467
U.S. Treasury securities		18,321		-		2,113		16,208
State and political subdivisions		171,032		593		5		171,620
Mortgage-backed securities-residential		28,661		-		5,069		23,592
Mortgage-backed securities-multi-family		90,918		-		22,034		68,884
Corporate debt securities		19,818		-		1,873		17,945
Total securities available-for-sale	$	341,801	$	593	$	33,678	$	308,716

	At June 30, 2023
(In thousands)	Amortized Cost (1)		Unrealized Gains		Unrealized Losses		Fair Value
U.S. government sponsored enterprises	$	13,054	$	-	$	2,231	$	10,823
U.S. Treasury securities		18,349		-		1,849		16,500
State and political subdivisions		137,343		670		2		138,011
Mortgage-backed securities-residential		29,586		-		3,985		25,601
Mortgage-backed securities-multi-family		91,016		-		18,930		72,086
Corporate debt securities		19,805		-		1,693		18,112
Total securities available-for-sale	$	309,153	$	670	$	28,690	$	281,133

(1) Amortized cost excludes accrued interest receivable of $3.1 million and $2.9 million at September 30, 2023 and June 30, 2023, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

Amortized Cost, Fair Value and Allowance for Credit Loss on Securities Held-to-Maturity

The following tables summarize the amortized cost, fair value, and allowance for credit loss on securities held-to-maturity by major type:

	At September 30, 2023
(In thousands)	Amortized Cost (1)		Unrealized Gains		Unrealized Losses		Fair Value		Allowance(2)		Net Carrying Value
U.S. Treasury securities	$	33,726	$	-	$	2,525	$	31,201	$	-	$	33,726
State and political subdivisions		467,693		1,945		48,799		420,839		46		467,647
Mortgage-backed securities-residential		35,927		-		4,507		31,420		-		35,927
Mortgage-backed securities-multi-family		152,504		-		23,140		129,364		-		152,504
Corporate debt securities		22,327		-		3,025		19,302		451		21,876
Other securities		37		-		-		37		1		36
Total securities held-to-maturity	$	712,214	$	1,945	$	81,996	$	632,163	$	498	$	711,716

	At June 30, 2023
(In thousands)	Amortized Cost (1)		Unrealized Gains		Unrealized Losses		Fair Value		Allowance(2)		Net Carrying Value
U.S. Treasury securities	$	33,705	$	-	$	2,438	$	31,267	$	-	$	33,705
State and political subdivisions		478,756		5,178		30,662		453,272		-		478,756
Mortgage-backed securities-residential		37,186		-		3,625		33,561		-		37,186
Mortgage-backed securities-multi-family		155,046		-		20,324		134,722		-		155,046
Corporate debt securities		21,632		-		3,426		18,206		-		21,632
Other securities		38		-		-		38		-		38
Total securities held-to-maturity	$	726,363	$	5,178	$	60,475	$	671,066	$	-	$	726,363

(1) Amortized cost excludes accrued interest receivable of $4.6 million and $3.9 million at September 30, 2023 and June 30, 2023, respectively, which is included in accrued interest receivable in the consolidated statement of financial condition.

(2) The Company adopted ASU 2016-13 (CECL) on July 1, 2023. For periods subsequent to adoption, an allowance is calculated under the CECL methodology. The periods prior to adoption did not have an allowance for credit losses under applicable GAAP for those periods.

Allowance for Credit Losses on Securities Held-to-Maturity

The following table summarizes the activity in the allowance for credit losses on securities held-to-maturity:

(In thousands)	Three months ended September 30, 2023
Balance beginning of period	$	-
Adoption of ASU 2016-13 (CECL) on July 1, 2023		503
Benefit for credit losses		(5	)
Balance end of period	$	498

Securities in Continuous Unrealized Loss Position

The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at September 30, 2023.

	Less Than 12 Months						More Than 12 Months						Total
(In thousands, except number of securities)	Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Number of Securities
Securities available-for-sale:
U.S. government sponsored enterprises	$	-	$	-		-	$	10,467	$	2,584		5	$	10,467	$	2,584		5
U.S. Treasury securities		756		63		2		15,452		2,050		6		16,208		2,113		8
State and political subdivisions		5,022		3		3		81		2		1		5,103		5		4
Mortgage-backed securities-residential		-		-		-		23,592		5,069		27		23,592		5,069		27
Mortgage-backed securities-multi-family		-		-		-		68,884		22,034		31		68,884		22,034		31
Corporate debt securities		1,847		49		1		16,098		1,824		16		17,945		1,873		17
Total securities available-for-sale		7,625		115		6		134,574		33,563		86		142,199		33,678		92
Securities held-to-maturity:
U.S. Treasury securities		-		-		-		31,201		2,525		8		31,201		2,525		8
State and political subdivisions		64,946		1,994		649		293,513		46,805		2,215		358,459		48,799		2,864
Mortgage-backed securities-residential		5		-		2		31,415		4,507		27		31,420		4,507		29
Mortgage-backed securities-multi-family		-		-		-		129,364		23,140		55		129,364		23,140		55
Corporate debt securities		6,753		995		6		12,549		2,030		13		19,302		3,025		19
Total securities held-to-maturity		71,704		2,989		657		498,042		79,007		2,318		569,746		81,996		2,975
Total securities	$	79,329	$	3,104		663	$	632,616	$	112,570		2,404	$	711,945	$	115,674		3,067

The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2023.

	Less Than 12 Months						More Than 12 Months						Total
(In thousands, except number of securities)	Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Number of Securities		Fair Value		Unrealized Losses		Number of Securities
Securities available-for-sale:
U.S. government sponsored enterprises	$	-	$	-		-	$	10,823	$	2,231		5	$	10,823	$	2,231		5
U.S. Treasury securities		761		57		2		15,739		1,792		6		16,500		1,849		8
State and political subdivisions		-		-		-		82		2		1		82		2		1
Mortgage-backed securities-residential		476		29		7		25,125		3,956		21		25,601		3,985		28
Mortgage-backed securities-multi-family		2,679		182		1		69,407		18,748		30		72,086		18,930		31
Corporate debt securities		2,352		40		2		15,760		1,653		15		18,112		1,693		17
Total securities available-for-sale		6,268		308		12		136,936		28,382		78		143,204		28,690		90
Securities held-to-maturity:
U.S. Treasury securities		-		-		-		31,267		2,438		8		31,267		2,438		8
State and political subdivisions		40,412		520		448		295,479		30,142		2,018		335,891		30,662		2,466
Mortgage-backed securities-residential		1,982		120		12		31,579		3,505		18		33,561		3,625		30
Mortgage-backed securities-multi-family		5,362		245		2		129,360		20,079		54		134,722		20,324		56
Corporate debt securities		10,236		2,012		9		7,970		1,414		10		18,206		3,426		19
Total securities held-to-maturity		57,992		2,897		471		495,655		57,578		2,108		553,647		60,475		2,579
Total securities	$	64,260	$	3,205		483	$	632,591	$	85,960		2,186	$	696,851	$	89,165		2,669

Investments Classified by Contractual Maturity Date

The estimated fair values of debt securities at September 30, 2023, by contractual maturity are shown below. Expected maturities may differ from contractual maturities, because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.

(In thousands)

Securities available-for-sale	Amortized Cost		Fair Value
Within one year	$	171,471	$	172,049
After one year through five years		38,162		34,285
After five years through ten years		11,089		8,757
After ten years		1,500		1,149
Total securities available-for-sale		222,222		216,240
Mortgage-backed and asset-backed securities		119,579		92,476
Total securities available-for-sale		341,801		308,716
Securities held-to-maturity
Within one year		60,158		58,999
After one year through five years		167,354		158,761
After five years through ten years		149,902		133,552
After ten years		146,369		120,067
Total securities held-to-maturity		523,783		471,379
Mortgage-backed securities		188,431		160,784
Total securities held-to-maturity		712,214		632,163
Total securities	$	1,054,015	$	940,879