INVESTMENT SECURITIES

6 Months Ended

Dec. 31, 2022

INVESTMENT SECURITIES

INVESTMENT SECURITIES

5.INVESTMENT SECURITIES

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

	December 31, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available for sale:
U.S. Government and agency obligations	$	412,584	$	86	$	(20,750)	$	391,920
Municipal obligations		115,654		14		(508)		115,160
Other debt securities		287		308		(64)		531
Total available for sale securities	$	528,525	$	408	$	(21,322)	$	507,611
Securities held to maturity:
Corporate debt securities	$	20,000	$	—	$	(1,889)	$	18,111
Municipal obligations		4,296		—		(171)		4,125
Total held to maturity securities	$	24,296	$	—	$	(2,060)	$	22,236
Equity securities:
Common stock	$	1,040	$	1,240	$	(13)	$	2,267
Total equity securities	$	1,040	$	1,240	$	(13)	$	2,267

	June 30, 2022
			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
Securities available for sale:
U.S. Government and agency obligations	$	380,708	$	143	$	(15,005)	$	365,846
Municipal obligations		115,480		55		(182)		115,353
Other debt securities		320		326		(55)		591
Total available for sale securities	$	496,508	$	524	$	(15,242)	$	481,790
Securities held to maturity:
Corporate debt securities	$	20,000	$	—	$	(1,349)	$	18,651
Municipal obligations		3,952		—		(136)		3,816
Total held to maturity securities	$	23,952	$	—	$	(1,485)	$	22,467
Equity securities:
Common stock	$	1,040	$	999	$	—	$	2,039
Total equity securities	$	1,040	$	999	$	—	$	2,039

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):

	December 31, 2022
	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	$	176,416	$	(4,662)	$	205,944	$	(16,088)	$	382,360	$	(20,750)
Municipal obligations		97,521		(508)		—		—		97,521		(508)
Other debt securities		37		(1)		90		(63)		127		(64)
	$	273,974	$	(5,171)	$	206,034	$	(16,151)	$	480,008	$	(21,322)
Securities held to maturity:
Corporate debt securities	$	18,111	$	(1,889)	$	—	$	—	$	18,111	$	(1,889)
Municipal obligations		4,125		(171)		—		—		4,125		(171)
	$	22,236	$	(2,060)	$	—	$	—	$	22,236	$	(2,060)

	June 30, 2022
	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	$	76,252	$	(3,771)	$	265,828	$	(11,234)	$	342,080	$	(15,005)
Municipal obligations		81,522		(182)		—		—		81,522		(182)
Other debt securities		53		(3)		137		(52)		190		(55)
	$	157,827	$	(3,956)	$	265,965	$	(11,286)	$	423,792	$	(15,242)
Securities held to maturity:
Corporate debt securities	$	18,651	$	(1,349)	$	—	$	—	$	18,651	$	(1,349)
Municipal obligations		3,816		(136)		—		—		3,816		(136)
	$	22,467	$	(1,485)	$	—	$	—	$	22,467	$	(1,485)

At December 31, 2022, there were 184 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 other debt securities (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.

At December 31, 2022, management reviewed all other debt securities which were rated less than investment grade for impairment, resulting in no additional impairment charges during the three or six months ended December 31, 2022. At December 31, 2022, 54 securities with an amortized cost of $235,000 and remaining par value of $1.5 million were evaluated.

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

Balance, July 1, 2022	$	1,180
Reductions for amounts realized for securities transactions		—
Balance, December 31, 2022	$	1,180

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.

	December 31, 2022
	Amortized		Estimated
	Cost		Fair Value
Securities available for sale:
Due in one year or less	$	191,196	$	189,158
Due after one to five years		337,042		317,922
Other debt securities		287		531
	$	528,525	$	507,611
Securities held to maturity:
Due in one year or less	$	2,185	$	2,014
Due after one to five years		2,111		2,111
Due after five to ten years		20,000		18,111
	$	24,296	$	22,236

There were no sales of securities available for sale for the three and six months ended December 31, 2022. There were no sales of securities available for sale for the three months ended December 31, 2021. During the six months ended December 31, 2021, the Company received $5.3 million in proceeds from the sale of securities available for sale, realizing gross gains of $4,000.

There were no sales of securities held to maturity for the three and six months ended December 31, 2022 and 2021.

There were no sales of equity securities for the three and six months ended December 31, 2022. During the six months ended December 31, 2021, the Company received $803,000 in proceeds from the sale of equity securities. There were no sales of equity securities for the three months ended December 31, 2021.

The portion of unrealized gains and losses for the period that relates to equity securities still held at the reporting date are as follows (dollars in thousands):

	For the Three Months Ended December 31,				For the Six Months Ended December 31,
	2022		2021		2022		2021
Net gain recognized during the period on equity securities	$	268	$	160	$	228	$	118
Less: Net gains recognized during the period on equity securities sold during the period		—		—		—		17
Unrealized gains recognized during reporting period on equity securities still held at reporting date	$	268	$	160	$	228	$	101

At December 31, 2022, 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 the Company’s equity. As of December 31, 2022 and June 30, 2022, the carrying value of available for sale securities pledged to secure Federal Home Loan Bank of New York (“FHLBNY”) advances and municipal deposits was $504.8 million and $470.6 million, respectively.