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Investment Securities
 9 Months Ended
Mar. 31, 2022
Investments Debt And Equity Securities [Abstract]  
Investment Securities

Note 3. Investment Securities

The amortized cost, gross unrealized/unrecognized gains and losses and fair value of available for sale and held to maturity debt securities at March 31, 2022 and June 30, 2021 were as follows (in thousands):

 

 

 

March 31, 2022

 

 

 

Amortized

 

 

Gross Unrealized/Unrecognized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Available for sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

10,939

 

 

$

-

 

 

$

(710

)

 

$

10,229

 

Corporate

 

 

5,000

 

 

 

8

 

 

 

(30

)

 

 

4,978

 

State and municipal

 

 

7,040

 

 

 

-

 

 

 

(1,507

)

 

 

5,533

 

Mortgage-backed securities – residential

 

 

14,960

 

 

 

23

 

 

 

(941

)

 

 

14,042

 

Mortgage-backed securities – commercial

 

 

2,435

 

 

 

-

 

 

 

(32

)

 

 

2,403

 

Total available for sale debt securities

 

$

40,374

 

 

$

31

 

 

$

(3,220

)

 

$

37,185

 

Held to maturity debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

49,995

 

 

$

44

 

 

$

(1,989

)

 

$

48,050

 

Corporate

 

 

52,083

 

 

 

562

 

 

 

(2,075

)

 

 

50,570

 

State and municipal

 

 

87,407

 

 

 

-

 

 

 

(15,294

)

 

 

72,113

 

Mortgage-backed securities – residential

 

 

106,302

 

 

 

97

 

 

 

(5,158

)

 

 

101,241

 

Mortgage-backed securities – collateralized
mortgage obligations

 

 

26,076

 

 

 

2

 

 

 

(1,373

)

 

 

24,705

 

Mortgage-backed securities – commercial

 

 

89,033

 

 

 

62

 

 

 

(6,274

)

 

 

82,821

 

Total held to maturity debt securities

 

$

410,896

 

 

$

767

 

 

$

(32,163

)

 

$

379,500

 

 

 

 

June 30, 2021

 

 

 

Amortized

 

 

Gross Unrealized/Unrecognized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Available for sale debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

21,931

 

 

$

6

 

 

$

(121

)

 

$

21,816

 

Corporate

 

 

8,013

 

 

 

176

 

 

 

-

 

 

 

8,189

 

State and municipal

 

 

7,041

 

 

 

104

 

 

 

(30

)

 

 

7,115

 

Mortgage-backed securities – residential

 

 

17,738

 

 

 

148

 

 

 

(232

)

 

 

17,654

 

Mortgage-backed securities – commercial

 

 

2,490

 

 

 

123

 

 

 

-

 

 

 

2,613

 

Total available for sale debt securities

 

$

57,213

 

 

$

557

 

 

$

(383

)

 

$

57,387

 

Held to maturity debt securities

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

33,994

 

 

$

202

 

 

$

(84

)

 

$

34,112

 

Corporate

 

 

43,605

 

 

 

1,312

 

 

 

(38

)

 

 

44,879

 

State and municipal

 

 

57,625

 

 

 

440

 

 

 

(248

)

 

 

57,817

 

Mortgage-backed securities – residential

 

 

96,181

 

 

 

2,713

 

 

 

(107

)

 

 

98,787

 

Mortgage-backed securities – collateralized
 mortgage obligations

 

 

33,300

 

 

 

376

 

 

 

(328

)

 

 

33,348

 

Mortgage-backed securities – commercial

 

 

72,879

 

 

 

937

 

 

 

(622

)

 

 

73,194

 

Total held to maturity debt securities

 

$

337,584

 

 

$

5,980

 

 

$

(1,427

)

 

$

342,137

 

 

No securities were sold during the three or nine months ended March 31, 2022. During the three and nine months ended March 31, 2021, the Company sold $5.0 million of securities which resulted in $113,000 of realized gains, which included the disposal of $1.6 million of securities classified as held to maturity, resulting in $61,000 of realized gains. These held to maturity securities were comprised of seasoned mortgage-backed securities where the Company collected a substantial portion (at least 85%) of the principal outstanding at acquisition due to prepayments or scheduled payments payable in equal installments, comparing both principal and interest over terms.

The following table presents the fair value and carrying amount of debt securities at March 31, 2022, by contractual maturity (in thousands). Expected maturities may differ from contractual maturities if borrowers have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately.

 

 

 

Held to maturity

 

 

Available for sale

 

 

 

Carrying

 

 

Fair

 

 

Amortized

 

 

Fair

 

 

 

Amount

 

 

Value

 

 

Cost

 

 

Value

 

1 year or less

 

$

5,115

 

 

$

5,157

 

 

$

-

 

 

$

-

 

1 to 5 years

 

 

55,970

 

 

 

53,720

 

 

 

5,000

 

 

 

4,849

 

5 to 10 years

 

 

43,463

 

 

 

42,030

 

 

 

10,939

 

 

 

10,357

 

over 10 years

 

 

81,068

 

 

 

66,179

 

 

 

7,040

 

 

 

5,534

 

Mortgage-backed securities and other

 

 

225,280

 

 

 

212,414

 

 

 

17,395

 

 

 

16,445

 

Total

 

$

410,896

 

 

$

379,500

 

 

$

40,374

 

 

$

37,185

 

 

Securities pledged had carrying amounts of $206.3 million and $180.1 million at March 31, 2022 and June 30, 2021, respectively, and were pledged principally to secure FHLB advances and public deposits.

The following table provides information regarding investment securities with unrealized/unrecognized losses, aggregated by investment category and length of time that individual securities had been in a continuous unrealized loss position at March 31, 2022 and June 30, 2021 (in thousands):

 

 

 

March 31, 2022

 

 

 

Less than 12 months

 

 

12 months or greater

 

 

Total

 

 

 

 

 

 

Unrealized/

 

 

 

 

 

Unrealized/

 

 

 

 

 

Unrealized/

 

 

 

Fair

 

 

Unrecognized

 

 

Fair

 

 

Unrecognized

 

 

Fair

 

 

Unrecognized

 

 

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

10,229

 

 

$

(710

)

 

$

-

 

 

$

-

 

 

$

10,229

 

 

$

(710

)

Corporate

 

 

2,970

 

 

 

(30

)

 

 

-

 

 

 

-

 

 

 

2,970

 

 

 

(30

)

State and municipal

 

 

3,312

 

 

 

(710

)

 

 

2,221

 

 

 

(797

)

 

 

5,533

 

 

 

(1,507

)

Mortgage-backed securities – residential

 

 

1,234

 

 

 

(12

)

 

 

9,234

 

 

 

(929

)

 

 

10,468

 

 

 

(941

)

Mortgage-backed securities – commercial

 

 

2,403

 

 

 

(32

)

 

 

-

 

 

 

-

 

 

 

2,403

 

 

 

(32

)

Total available for sale

 

$

20,148

 

 

$

(1,494

)

 

$

11,455

 

 

$

(1,726

)

 

$

31,603

 

 

$

(3,220

)

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

37,198

 

 

$

(1,801

)

 

$

2,807

 

 

$

(188

)

 

$

40,005

 

 

$

(1,989

)

Corporate

 

 

40,483

 

 

 

(2,075

)

 

 

-

 

 

 

-

 

 

 

40,483

 

 

 

(2,075

)

State and municipal

 

 

68,772

 

 

 

(14,064

)

 

 

3,341

 

 

 

(1,230

)

 

 

72,113

 

 

 

(15,294

)

Mortgage-backed securities – residential

 

 

90,221

 

 

 

(4,751

)

 

 

4,410

 

 

 

(407

)

 

 

94,631

 

 

 

(5,158

)

Mortgage-backed securities – collateralized
mortgage obligations

 

 

13,899

 

 

 

(540

)

 

 

7,483

 

 

 

(833

)

 

 

21,382

 

 

 

(1,373

)

Mortgage-backed securities – commercial

 

 

58,089

 

 

 

(4,013

)

 

 

18,146

 

 

 

(2,261

)

 

 

76,235

 

 

 

(6,274

)

Total held to maturity

 

$

308,662

 

 

$

(27,244

)

 

$

36,187

 

 

$

(4,919

)

 

$

344,849

 

 

$

(32,163

)

 

 

 

 

June 30, 2021

 

 

 

Less than 12 months

 

 

12 months or greater

 

 

Total

 

 

 

 

 

 

Unrealized/

 

 

 

 

 

Unrealized/

 

 

 

 

 

Unrealized/

 

 

 

Fair

 

 

Unrecognized

 

 

Fair

 

 

Unrecognized

 

 

Fair

 

 

Unrecognized

 

 

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

 

Value

 

 

Loss

 

Available for sale

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

14,811

 

 

$

(121

)

 

$

-

 

 

$

-

 

 

$

14,811

 

 

$

(121

)

State and municipal

 

 

2,990

 

 

 

(30

)

 

 

-

 

 

 

-

 

 

 

2,990

 

 

 

(30

)

Mortgage-backed securities – residential

 

 

9,615

 

 

 

(222

)

 

 

1,339

 

 

 

(10

)

 

 

10,954

 

 

 

(232

)

Total available for sale

 

$

27,416

 

 

$

(373

)

 

$

1,339

 

 

$

(10

)

 

$

28,755

 

 

$

(383

)

Held to maturity

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

19,409

 

 

$

(84

)

 

$

-

 

 

$

-

 

 

$

19,409

 

 

$

(84

)

Corporate

 

 

2,488

 

 

 

(13

)

 

 

4,975

 

 

 

(25

)

 

 

7,463

 

 

 

(38

)

State and municipal

 

 

19,980

 

 

 

(248

)

 

 

-

 

 

 

-

 

 

 

19,980

 

 

 

(248

)

Mortgage-backed securities – residential

 

 

30,335

 

 

 

(107

)

 

 

-

 

 

 

-

 

 

 

30,335

 

 

 

(107

)

Mortgage-backed securities – collateralized
mortgage obligations

 

 

15,133

 

 

 

(328

)

 

 

-

 

 

 

-

 

 

 

15,133

 

 

 

(328

)

Mortgage-backed securities – commercial

 

 

47,580

 

 

 

(622

)

 

 

-

 

 

 

-

 

 

 

47,580

 

 

 

(622

)

Total held to maturity

 

$

134,925

 

 

$

(1,402

)

 

$

4,975

 

 

$

(25

)

 

$

139,900

 

 

$

(1,427

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of March 31, 2022, the Company’s securities portfolio consisted of $448.1 million in securities, of which 275 securities with a fair value of $376.5 million were in an unrealized/unrecognized loss position. Non-U.S. government and agency obligations are internally pass rated and are subject to quarterly credit monitoring.

There were no securities for which the Company believes it is not probable that it will collect all amounts due according to the contractual terms of the security as of March 31, 2022 or June 30, 2021. Management believes the unrealized losses are primarily a result of changes in market interest rates. The Company has determined that it does not intend to sell, or it is not more likely than not that it will be required to sell, its securities that are in an unrealized loss position prior to the recovery of its amortized cost basis. Therefore, the Company did not consider any securities to be other-than-temporarily impaired as of March 31, 2022 or June 30, 2021.