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.
|