XML 26 R12.htm IDEA: XBRL DOCUMENT v3.22.2.2
Securities
 12 Months Ended
Jun. 30, 2022
Investments Debt And Equity Securities [Abstract]  
Securities

Note 4 - Securities

The following tables present the amortized cost, gross unrealized gains and losses and estimated fair values for available for sale securities and the amortized cost, gross unrecognized gains and losses and estimated fair values for held to maturity securities as of the dates indicated.

 

 

June 30, 2022

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for
Credit Losses

 

 

Fair
Value

 

 

(In Thousands)

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political subdivisions

$

28,485

 

 

$

39

 

 

$

89

 

 

$

-

 

 

$

28,435

 

Asset-backed securities

 

169,506

 

 

 

-

 

 

 

2,949

 

 

 

-

 

 

 

166,557

 

Collateralized loan obligations

 

315,693

 

 

 

-

 

 

 

7,880

 

 

 

-

 

 

 

307,813

 

Corporate bonds

 

159,871

 

 

 

175

 

 

 

6,649

 

 

 

-

 

 

 

153,397

 

Total debt securities

 

673,555

 

 

 

214

 

 

 

17,567

 

 

 

-

 

 

 

656,202

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations (1)

 

7,451

 

 

 

-

 

 

 

329

 

 

 

-

 

 

 

7,122

 

Residential pass-through securities (1)

 

595,337

 

 

 

45

 

 

 

80,624

 

 

 

-

 

 

 

514,758

 

Commercial pass-through securities (1)

 

185,781

 

 

 

1

 

 

 

19,771

 

 

 

-

 

 

 

166,011

 

Total mortgage-backed securities

 

788,569

 

 

 

46

 

 

 

100,724

 

 

 

-

 

 

 

687,891

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

$

1,462,124

 

 

$

260

 

 

$

118,291

 

 

$

-

 

 

$

1,344,093

 

 

(1) Government-sponsored enterprises.

Note 4 – Securities (continued)

 

 

June 30, 2021

 

 

Amortized
Cost

 

 

Gross
Unrealized
Gains

 

 

Gross
Unrealized
Losses

 

 

Allowance for
Credit Losses

 

 

Fair
Value

 

 

(In Thousands)

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political subdivisions

$

33,800

 

 

$

803

 

 

$

-

 

 

$

-

 

 

$

34,603

 

Asset-backed securities

 

240,217

 

 

 

2,835

 

 

 

63

 

 

 

-

 

 

 

242,989

 

Collateralized loan obligations

 

189,873

 

 

 

177

 

 

 

170

 

 

 

-

 

 

 

189,880

 

Corporate bonds

 

155,622

 

 

 

2,802

 

 

 

73

 

 

 

-

 

 

 

158,351

 

Total debt securities

 

619,512

 

 

 

6,617

 

 

 

306

 

 

 

-

 

 

 

625,823

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Collateralized mortgage obligations (1)

 

13,420

 

 

 

319

 

 

 

-

 

 

 

-

 

 

 

13,739

 

Residential pass-through securities (1)

 

744,196

 

 

 

7,443

 

 

 

7,148

 

 

 

-

 

 

 

744,491

 

Commercial pass-through securities (1)

 

289,725

 

 

 

5,738

 

 

 

2,652

 

 

 

-

 

 

 

292,811

 

Total mortgage-backed securities

 

1,047,341

 

 

 

13,500

 

 

 

9,800

 

 

 

-

 

 

 

1,051,041

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities available for sale

$

1,666,853

 

 

$

20,117

 

 

$

10,106

 

 

$

-

 

 

$

1,676,864

 

 

(1) Government-sponsored enterprises.

 

 

June 30, 2022

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Allowance for
Credit Losses

 

 

Fair
Value

 

 

(In Thousands)

 

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political subdivisions

$

21,159

 

 

$

44

 

 

$

78

 

 

$

-

 

 

$

21,125

 

Total debt securities

 

21,159

 

 

 

44

 

 

 

78

 

 

 

-

 

 

 

21,125

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Residential pass-through securities (1)

 

84,851

 

 

 

-

 

 

 

8,587

 

 

 

-

 

 

 

76,264

 

Commercial pass-through securities (1)

 

12,281

 

 

 

-

 

 

 

1,552

 

 

 

-

 

 

 

10,729

 

Total mortgage-backed securities

 

97,132

 

 

 

-

 

 

 

10,139

 

 

 

-

 

 

 

86,993

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities held to maturity

$

118,291

 

 

$

44

 

 

$

10,217

 

 

$

-

 

 

$

108,118

 

 

(1) Government-sponsored enterprises.

Note 4 – Securities (continued)

 

 

June 30, 2021

 

 

Amortized
Cost

 

 

Gross
Unrecognized
Gains

 

 

Gross
Unrecognized
Losses

 

 

Allowance for
Credit Losses

 

 

Fair
Value

 

 

(In Thousands)

 

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Debt securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political subdivisions

$

25,824

 

 

$

1,204

 

 

$

-

 

 

$

-

 

 

$

27,028

 

Total debt securities

 

25,824

 

 

 

1,204

 

 

 

-

 

 

 

-

 

 

 

27,028

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Mortgage-backed securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial pass-through securities (1)

 

12,314

 

 

 

268

 

 

 

-

 

 

 

-

 

 

 

12,582

 

Total mortgage-backed securities

 

12,314

 

 

 

268

 

 

 

-

 

 

 

-

 

 

 

12,582

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total securities held to maturity

$

38,138

 

 

$

1,472

 

 

$

-

 

 

$

-

 

 

$

39,610

 

 

(1) Government-sponsored enterprises.

 

Excluding the balances of mortgage-backed securities, the following tables present the amortized cost and estimated fair values of debt securities available for sale and held to maturity, by contractual maturity, at June 30, 2022:

 

 

 

 

June 30, 2022

 

 

 

 

 

 

Amortized
Cost

 

 

Fair
Value

 

 

 

 

(In Thousands)

 

Available for sale debt securities:

 

 

 

 

 

 

 

 

 

Due in one year or less

 

 

 

 

$

2,621

 

 

$

2,625

 

Due after one year through five years

 

 

 

 

 

18,736

 

 

 

18,725

 

Due after five years through ten years

 

 

 

 

 

336,005

 

 

 

327,737

 

Due after ten years

 

 

 

 

 

316,193

 

 

 

307,115

 

Total

 

 

 

 

$

673,555

 

 

$

656,202

 

 

 

 

 

June 30, 2022

 

 

 

 

 

 

Amortized
Cost

 

 

Fair
Value

 

 

 

 

(In Thousands)

 

Held to maturity debt securities:

 

 

 

 

 

 

 

 

 

Due in one year or less

 

 

 

 

$

5,048

 

 

$

5,056

 

Due after one year through five years

 

 

 

 

 

14,409

 

 

 

14,377

 

Due after five years through ten years

 

 

 

 

 

1,702

 

 

 

1,692

 

Due after ten years

 

 

 

 

 

-

 

 

 

-

 

Total

 

 

 

 

$

21,159

 

 

$

21,125

 

 

Sales of securities available for sale were as follows for the periods presented below:

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

2022

 

 

2021

 

 

2020

 

 

(In Thousands)

 

Available for sale securities sold:

 

 

 

 

 

 

 

 

Proceeds from sales of securities

$

100,336

 

 

$

98,084

 

 

$

164,299

 

 

 

 

 

 

 

 

 

 

Gross realized gains

$

-

 

 

$

1,196

 

 

$

2,363

 

Gross realized losses

 

(565

)

 

 

(470

)

 

 

(145

)

Net (loss) gain on sales of securities

$

(565

)

 

$

726

 

 

$

2,218

 

 

Note 4 – Securities (continued)

Gains resulting from calls of securities available for sale were as follows for the periods presented below:

 

 

June 30,

 

 

June 30,

 

 

June 30,

 

 

2022

 

 

2021

 

 

2020

 

 

(In Thousands)

 

Available for sale securities called:

 

 

 

 

 

 

 

 

Gross realized gains

$

6

 

 

$

41

 

 

$

32

 

Gross realized losses

 

-

 

 

 

-

 

 

 

-

 

Net gain on calls of securities

$

6

 

 

$

41

 

 

$

32

 

 

During the years ended June 30, 2022, 2021 and 2020, there were no gains or losses recorded on sales or calls of securities held to maturity.

The carrying value of securities pledged for borrowings at the FHLB and other institutions, and securities pledged for public funds and other purposes, were as follows as of the dates presented below:

 

 

 

 

 

 

June 30,

 

 

June 30,

 

 

 

 

 

 

2022

 

 

2021

 

 

 

 

 

 

(In Thousands)

 

Securities pledged:

 

 

 

 

 

 

 

 

 

  Pledged for borrowings at the FHLB of New York

 

$

178,048

 

 

$

170,120

 

  Pledged to secure public funds on deposit

 

 

357,841

 

 

 

137,778

 

  Pledged for potential borrowings at the Federal Reserve Bank of New York

 

 

378,071

 

 

 

274,076

 

Total carrying value of securities pledged

 

 

 

 

$

913,960

 

 

$

581,974

 

 

The following tables present the gross unrealized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrealized loss position within the available for sale portfolio at June 30, 2022 and June 30, 2021:

 

 

June 30, 2022

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Number of Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

(Dollars in Thousands)

 

Securities Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and political
  subdivisions

$

11,310

 

 

$

89

 

 

$

-

 

 

$

-

 

 

 

30

 

 

$

11,310

 

 

$

89

 

Asset-backed securities

 

161,303

 

 

 

2,928

 

 

 

5,254

 

 

 

21

 

 

 

15

 

 

 

166,557

 

 

 

2,949

 

Collateralized loan obligations

 

236,967

 

 

 

6,435

 

 

 

70,846

 

 

 

1,445

 

 

 

24

 

 

 

307,813

 

 

 

7,880

 

Corporate bonds

 

129,407

 

 

 

6,464

 

 

 

3,815

 

 

 

185

 

 

 

27

 

 

 

133,222

 

 

 

6,649

 

Collateralized mortgage obligations

 

7,122

 

 

 

329

 

 

 

-

 

 

 

-

 

 

 

6

 

 

 

7,122

 

 

 

329

 

Commercial pass-through securities

 

63,045

 

 

 

3,194

 

 

 

102,817

 

 

 

16,577

 

 

 

21

 

 

 

165,862

 

 

 

19,771

 

Residential pass-through securities

 

237,928

 

 

 

26,566

 

 

 

274,197

 

 

 

54,058

 

 

 

106

 

 

 

512,125

 

 

 

80,624

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

847,082

 

 

$

46,005

 

 

$

456,929

 

 

$

72,286

 

 

 

229

 

 

$

1,304,011

 

 

$

118,291

 

 

Note 4 – Securities (continued)

 

 

June 30, 2021

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

Number of Securities

 

 

Fair
Value

 

 

Unrealized
Losses

 

 

(Dollars in Thousands)

 

Securities Available for Sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset-backed securities

$

12,159

 

 

$

63

 

 

$

-

 

 

$

-

 

 

 

2

 

 

$

12,159

 

 

$

63

 

Collateralized loan obligations

 

36,741

 

 

 

9

 

 

 

58,605

 

 

 

161

 

 

 

8

 

 

 

95,346

 

 

 

170

 

Corporate bonds

 

15,952

 

 

 

73

 

 

 

-

 

 

 

-

 

 

 

4

 

 

 

15,952

 

 

 

73

 

Commercial pass-through securities

 

145,055

 

 

 

2,652

 

 

 

-

 

 

 

-

 

 

 

7

 

 

 

145,055

 

 

 

2,652

 

Residential pass-through securities

 

424,112

 

 

 

7,148

 

 

 

-

 

 

 

-

 

 

 

10

 

 

 

424,112

 

 

 

7,148

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

634,019

 

 

$

9,945

 

 

$

58,605

 

 

$

161

 

 

 

31

 

 

$

692,624

 

 

$

10,106

 

 

The following table presents the gross unrecognized losses on securities and the estimated fair value of the related securities, aggregated by investment category and length of time that securities have been in a continuous unrecognized loss position within the held to maturity portfolio at June 30, 2022:

 

 

June 30, 2022

 

 

Less than 12 Months

 

 

12 Months or More

 

 

Total

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

Number of Securities

 

 

Fair
Value

 

 

Unrecognized
Losses

 

 

(Dollars in Thousands)

 

Securities Held to Maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Obligations of state and
  political subdivisions

$

8,681

 

 

$

78

 

 

$

-

 

 

$

-

 

 

 

15

 

 

$

8,681

 

 

$

78

 

Commercial pass-through
  securities

 

10,729

 

 

 

1,552

 

 

 

-

 

 

 

-

 

 

 

1

 

 

 

10,729

 

 

 

1,552

 

Residential pass-through
  securities

 

76,264

 

 

 

8,587

 

 

 

-

 

 

 

-

 

 

 

8

 

 

 

76,264

 

 

 

8,587

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total

$

95,674

 

 

$

10,217

 

 

$

-

 

 

$

-

 

 

 

24

 

 

$

95,674

 

 

$

10,217

 

 

At June 30, 2021, there were no held to maturity securities with unrecognized losses.

Available for sale securities are evaluated to determine if a decline in fair value below the amortized cost basis has resulted from a credit loss or from other factors. An impairment related to credit factors would be recorded through an allowance for credit losses. The allowance is limited to the amount by which the security’s amortized cost basis exceeds the fair value. An impairment that has not been recorded through an allowance for credit losses shall be recorded through other comprehensive income, net of applicable taxes. Investment securities will be written down to fair value through the Consolidated Statement of Income if management intends to sell, or may be required to sell, the securities before they recover in value. The issuers of these securities continue to make timely principal and interest payments and none of these securities were past due or were placed in nonaccrual status at June 30, 2022. Management believes that the unrealized losses on these securities are a function of changes in market interest rates and credit spreads, not changes in credit quality. No allowance for credit losses was recorded at June 30, 2022 on available for sale securities.

At June 30, 2022, the held to maturity securities portfolio consisted of agency mortgage-backed securities and obligations of state and political subdivisions. The mortgage-backed securities are issued by U.S. government agencies and are implicitly guaranteed by the U.S. government. The obligations of state and political subdivisions in the portfolio are highly rated by major rating agencies and have a long history of no credit losses. The Company regularly monitors the obligations of state and political subdivisions sector of the market and reviews collectability including such factors as the financial condition of the issuers as well as credit ratings in effect as of the reporting period. No allowance for credit losses was recorded at June 30, 2022 on held to maturity securities.