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Investment Securities
3 Months Ended
Sep. 30, 2021
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 September 30, 2021 and June 30, 2021 were as follows (in thousands):

 

 

 

September 30, 2021

 

 

 

Amortized

 

 

Gross Unrealized/Unrecognized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

10,933

 

 

$

-

 

 

$

(72

)

 

$

10,861

 

Corporate

 

 

8,008

 

 

 

188

 

 

 

-

 

 

 

8,196

 

State and municipal

 

 

7,041

 

 

 

57

 

 

 

(162

)

 

 

6,936

 

Mortgage-backed securities – residential

 

 

16,575

 

 

 

111

 

 

 

(242

)

 

 

16,444

 

Mortgage-backed securities – commercial

 

 

2,471

 

 

 

107

 

 

 

-

 

 

 

2,578

 

Total available for sale

 

$

45,028

 

 

$

463

 

 

$

(476

)

 

$

45,015

 

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

35,994

 

 

$

150

 

 

$

(82

)

 

$

36,062

 

Corporate

 

 

49,098

 

 

 

1,454

 

 

 

(75

)

 

 

50,477

 

State and municipal

 

 

84,707

 

 

 

320

 

 

 

(1,172

)

 

 

83,855

 

Mortgage-backed securities – residential

 

 

100,800

 

 

 

2,698

 

 

 

(247

)

 

 

103,251

 

Mortgage-backed securities – collateralized mortgage obligations

 

 

29,230

 

 

 

287

 

 

 

(287

)

 

 

29,230

 

Mortgage-backed securities – commercial

 

 

78,681

 

 

 

755

 

 

 

(790

)

 

 

78,646

 

Total held to maturity

 

$

378,510

 

 

$

5,664

 

 

$

(2,653

)

 

$

381,521

 

 

 

 

June 30, 2021

 

 

 

Amortized

 

 

Gross Unrealized/Unrecognized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Available for sale:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

57,213

 

 

$

557

 

 

$

(383

)

 

$

57,387

 

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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

 

$

337,584

 

 

$

5,980

 

 

$

(1,427

)

 

$

342,137

 

 

No securities were sold during the three months ended September 30, 2021 or 2020.              

The following table presents the fair value and carrying amount of debt securities at September 30, 2021, 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

 

$

2,040

 

 

$

2,052

 

 

$

3,008

 

 

$

3,026

 

1 to 5 years

 

 

44,664

 

 

 

44,809

 

 

 

5,000

 

 

 

5,016

 

5 to 10 years

 

 

37,109

 

 

 

38,392

 

 

 

10,933

 

 

 

11,015

 

over 10 years

 

 

82,087

 

 

 

81,040

 

 

 

7,041

 

 

 

6,936

 

Mortgage-backed securities and other

 

 

212,610

 

 

 

215,228

 

 

 

19,046

 

 

 

19,022

 

Total

 

$

378,510

 

 

$

381,521

 

 

$

45,028

 

 

$

45,015

 

 

Securities pledged had carrying amounts of $162.5 million and $180.1 million at September 30, 2021 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 September 30, 2021 and June 30, 2021 (in thousands):

 

 

 

September 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

 

$

10,861

 

 

 

 

$

(72

)

 

$

-

 

 

$

-

 

 

$

10,861

 

 

$

(72

)

State and municipal

 

 

2,858

 

 

 

 

 

(162

)

 

 

-

 

 

 

-

 

 

 

2,858

 

 

 

(162

)

Mortgage-backed securities – residential

 

 

9,232

 

 

 

 

 

(232

)

 

 

1,309

 

 

 

(10

)

 

 

10,541

 

 

 

(242

)

Total available for sale

 

$

22,951

 

 

 

 

$

(466

)

 

$

1,309

 

 

$

(10

)

 

$

24,260

 

 

$

(476

)

Held to maturity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

U.S. Government and agency obligations

 

$

26,411

 

 

 

 

$

(82

)

 

$

-

 

 

$

-

 

 

$

26,411

 

 

$

(82

)

Corporate

 

 

2,475

 

 

 

 

 

(25

)

 

 

4,950

 

 

 

(50

)

 

 

7,425

 

 

 

(75

)

State and municipal

 

 

56,561

 

 

 

 

 

(1,172

)

 

 

-

 

 

 

-

 

 

 

56,561

 

 

 

(1,172

)

Mortgage-backed securities – residential

 

 

35,528

 

 

 

 

 

(247

)

 

 

-

 

 

 

-

 

 

 

35,528

 

 

 

(247

)

Mortgage-backed securities – collateralized mortgage obligations

 

 

15,110

 

 

 

 

 

(287

)

 

 

-

 

 

 

-

 

 

 

15,110

 

 

 

(287

)

Mortgage-backed securities – commercial

 

 

56,202

 

 

 

 

 

(761

)

 

 

1,323

 

 

 

(29

)

 

 

57,525

 

 

 

(790

)

Total held to maturity

 

$

192,287

 

 

 

 

$

(2,574

)

 

$

6,273

 

 

$

(79

)

 

$

198,560

 

 

$

(2,653

)

 

 

 

 

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 September 30, 2021, the Company’s securities portfolio consisted of $423.5 million in securities, of which 115 securities with a fair value of $222.8 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 September 30, 2021 or June 30, 2021. Management believes the unrealized losses are primarily a result of changes in 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 September 30, 2021 or June 30, 2021.