SECURITIES

9 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

SECURITIES

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:

	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Allowance for Credit Losses		Fair Value
	(In Thousands)
Available for sale:
Debt securities:
Asset-backed securities	$	145,616	$	22	$	2,585	$	—	$	143,053
Collateralized loan obligations	388,265		172		6,500		—		381,937
Corporate bonds	159,718		—		17,264		—		142,454
Total debt securities	693,599		194		26,349		—		667,444
Mortgage-backed securities:
Residential pass-through securities (1)	549,550		11		98,320		—		451,241
Commercial pass-through securities (1)	165,045		694		17,358		—		148,381
Total mortgage-backed securities	714,595		705		115,678		—		599,622
Total securities available for sale	$	1,408,194	$	899	$	142,027	$	—	$	1,267,066

___________________________

(1)Government-sponsored enterprises.

	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.

	March 31, 2023
	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	$	16,666	$	10	$	130	$	—	$	16,546
Total debt securities	16,666		10		130		—		16,546
Mortgage-backed securities:
Residential pass-through securities (1)	120,841		114		11,642		—		109,313
Commercial pass-through securities (1)	12,257		—		1,991		—		10,266
Total mortgage-backed securities	133,098		114		13,633		—		119,579
Total securities held to maturity	$	149,764	$	124	$	13,763	$	—	$	136,125

___________________________

(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.

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 March 31, 2023:

	March 31, 2023
	Amortized Cost		Fair Value
	(In Thousands)
Available for sale debt securities:
Due in one year or less	$	—	$	—
Due after one year through five years	11,865		11,757
Due after five years through ten years	350,025		331,980
Due after ten years	331,709		323,707
Total	$	693,599	$	667,444

	March 31, 2023
	Amortized Cost		Fair Value
	(In Thousands)
Held to maturity debt securities:
Due in one year or less	$	2,568	$	2,559
Due after one year through five years	12,399		12,286
Due after five years through ten years	1,699		1,701
Due after ten years	—		—
Total	$	16,666	$	16,546

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
	(In Thousands)
Available for sale securities sold:
Proceeds from sales of securities	$	—	$	—	$	105,199	$	—
Gross realized gains	$	—	$	—	$	—	$	—
Gross realized losses	—		—		(15,227)		—
Net loss on sales of securities	$	—	$	—	$	(15,227)	$	—

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

	Three Months Ended March 31,				Nine Months Ended March 31,
	2023		2022		2023		2022
	(In Thousands)
Available for sale securities called:
Gross realized gains	$	—	$	3	$	—	$	4
Gross realized losses	—		—		—		—
Net gain on calls of securities	$	—	$	3	$	—	$	4

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:

	March 31, 2023		June 30, 2022
	(In Thousands)
Securities pledged:
Pledged for borrowings at the FHLB of New York	$	—	$	178,048
Pledged to secure public funds on deposit	207,602		357,841
Pledged for potential borrowings at the Federal Reserve Bank of New York	541,656		378,071
Total carrying value of securities pledged	$	749,258	$	913,960

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 March 31, 2023 and June 30, 2022:

	March 31, 2023
	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	$	22,203	$	289	$	104,001	$	2,296	14	$	126,204	$	2,585
Collateralized loan obligations	33,732		381		277,809		6,119		25	311,541		6,500
Corporate bonds	38,792		1,695		103,662		15,569		31	142,454		17,264
Commercial pass-through securities	17,754		107		81,590		17,251		10	99,344		17,358
Residential pass-through securities	10,682		546		439,817		97,774		106	450,499		98,320
Total	$	123,163	$	3,018	$	1,006,879	$	139,009	186	$	1,130,042	$	142,027

	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

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 March 31, 2023 and June 30, 2022:

	March 31, 2023
	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	$	13,434	$	95	$	2,109	$	35	32	$	15,543	$	130
Commercial pass-through securities	—		—		10,266		1,991		1	10,266		1,991
Residential pass-through securities	—		—		69,725		11,642		8	69,725		11,642
Total	$	13,434	$	95	$	82,100	$	13,668	41	$	95,534	$	13,763

	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

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 March 31, 2023. 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 March 31, 2023 on available for sale securities.

The sale of available for sale securities during the nine months ended March 31, 2023 was part of a wholesale restructuring and the proceeds were reinvested in higher yielding securities. The Company was not required to sell these securities.At March 31, 2023, the held to maturity securities portfolio consists 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 March 31, 2023 on held to maturity securities.