3.INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities are as follows (dollars in thousands):


	March 31, 2020
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available for sale:
U.S. Government and agency obligations	$	61,915	$	431	$	—	$	62,346
Mortgage-backed securities - residential		85		—		—		85
Asset-backed securities		67		42		(4)		105
Collateralized mortgage obligations - residential		450		261		(56)		655
Municipal obligations		5,762		10		—		5,772
Total debt securities		68,279		744		(60)		68,963
Preferred stocks		6,007		21		(1,360)		4,668
Total available for sale securities	$	74,286	$	765	$	(1,420)	$	73,631

Securities held to maturity:
Municipal obligations	$	4,139	$	43	$	—	$	4,182


	June 30, 2019
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available for sale:
U.S. Government and agency obligations	$	70,706	$	164	$	(3)	$	70,867
Mortgage-backed securities - residential		109		3		—		112
Asset-backed securities		75		55		(2)		128
Collateralized mortgage obligations - residential		525		401		(37)		889
Municipal obligations		14,666		33		—		14,699
Total debt securities		86,081		656		(42)		86,695
Preferred stocks		6,007		52		(1,019)		5,040
Total available for sale securities	$	92,088	$	708	$	(1,061)	$	91,735

Securities held to maturity:
Municipal obligations	$	3,873	$	14	$	—	$	3,887

The estimated fair value and gross unrealized losses aggregated by security category and length of time such securities have been in a continuous unrealized loss position, is summarized as follows (dollars in thousands):


	March 31, 2020
	Less than 12 Months				12 Months or Longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Securities available for sale:
Mortgage-backed securities - residential (1)	$	14	$	—	$	1	$	—	$	15	$	—
Asset-backed securities		5		(1)		4		(3)		9		(4)
Collateralized mortgage obligations - residential		30		(2)		141		(54)		171		(56)
Preferred stocks		—		—		4,645		(1,360)		4,645		(1,360)
	$	49	$	(3)	$	4,791	$	(1,417)	$	4,840	$	(1,420)


	June 30, 2019
	Less than 12 Months				12 Months or Longer				Total
	Estimated		Unrealized		Estimated		Unrealized		Estimated		Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Securities available for sale:
U.S. Government and agency obligations	$	4,969	$	(1)	$	7,988	$	(2)	$	12,957	$	(3)
Mortgage-backed securities - residential (1)		1		—		2		—		3		—
Asset-backed securities		—		—		5		(2)		5		(2)
Collateralized mortgage obligations - residential		15		(9)		160		(28)		175		(37)
Preferred stocks		—		—		4,986		(1,019)		4,986		(1,019)
	$	4,985	$	(10)	$	13,141	$	(1,051)	$	18,126	$	(1,061)

(1)

Unrealized losses on these securities are less than $500.

At March 31, 2020, there were 48 securities with unrealized losses. Unrealized losses on debt securities are primarily related to increases in credit spreads since the securities were purchased. Unrealized losses on agency-backed and certain private-label mortgage-backed securities, asset-backed securities and collateralized mortgage obligation securities are not considered other-than-temporary based upon analysis completed by management considering credit rating of the instrument, length of time each security has spent in an unrealized loss position and the strength of the underlying collateral. Unrealized losses on two auction rate securities, consisting of U.S. Bancorp and Bank of America preferred stock, are not considered to be other-than-temporary based upon management’s evaluation of the underlying operating results and financial strength of the issuers. The U.S. Bancorp security is investment grade, whereas the Bank of America security, remains non-investment grade as of March 31, 2020. The Bank of America security had a cost basis of $2.2 million and an estimated fair value of $1.9 million, as of March 31, 2020. Management does not have the intent to sell, nor do they believe that they will be required to sell the above mentioned securities in an unrealized loss position before recovery of the amortized cost basis. In management’s opinion, the market conditions are temporary in nature and provide the basis for the Company’s belief that the declines are not other-than-temporary.

At March 31, 2020, management reviewed all private-label mortgage-backed securities, asset-backed securities and collateralized mortgage obligations which were rated less than investment grade for impairment, resulting in no additional impairment charges during the nine months ended March 31, 2020. At March 31, 2020, 57 securities with an amortized cost of $0.4 million and remaining par value of $1.8 million were evaluated.

The table below presents a rollforward of the credit losses recognized in earnings (dollars in thousands):


Balance, July 1, 2019	$	1,477

Reductions for amounts realized for securities transactions		(117)

Balance, March 31, 2020	$	1,360

The fair value of debt securities and carrying amount, if different, by contractual maturity were as follows (dollars in thousands). Securities not due at a single maturity date are shown separately.


	March 31, 2020
	Amortized		Estimated
	Cost		Fair Value
Securities available for sale:
Due in one year or less	$	67,677	$	68,118
Due after one to five years		—		—
Mortgage-backed securities - residential		85		85
Asset-backed securities		67		105
Collateralized mortgage obligations - residential		450		655
Preferred stocks		6,007		4,668
	$	74,286	$	73,631

Securities held to maturity:
Due in one year or less	$	3,803	$	3,846
Due after one to five years		226		226
Due after five to ten years		110		110
	$	4,139	$	4,182

During the three and nine months ended March 31, 2020, the Company received $5.0 million in proceeds from the sale of securities available for sale, realizing gross gains of $83,000. During the nine months ended March 31, 2020, the Company realized gross gains of $51,000 from other securities transactions. There were no sales of securities available for sale for the three and nine months ended March 31, 2019.

There were no sales of securities held to maturity for the three and nine months ended March 31, 2020 and 2019.

At March 31, 2020, there were no holdings of securities of any one issuer, other than the U.S. Government and its agencies, in an amount greater than 10% of our equity. As of March 31, 2020, and June 30, 2019, the carrying value of available for sale securities pledged to secure FHLBNY advances and municipal deposits was $67.0 million and $84.9 million, respectively.