Note 3 - Investments

3 Months Ended

Dec. 31, 2022

Notes to Financial Statements

Investment [Text Block]

Note 3. Investments

The Company invests in certificates of deposit (“CDs”) that are fully insured by the Federal Deposit Insurance Corporation (“FDIC”) and United States (U.S.) Treasury securities with terms of not more than five years, as well as money market accounts. Historically, the Company’s investment portfolio had been classified as held-to-maturity and recorded at amortized cost. During the second quarter of fiscal 2022, the Company sold investments and reclassified its investment portfolio to available-for-sale, which is reported at fair value. The unrealized gain or loss on investment securities is recorded in other comprehensive income, net of tax. Realized gains and losses on available-for-sale securities are recognized upon sale and are included in net investment income in the consolidated statement of earnings.

At December 31, 2022, available-for-sale investments consisted of the following:

	December 31, 2022
(In thousands)	Cost		Unrealized Gains		Unrealized Losses		Fair Value
Short-Term
U.S. Treasury securities	$	108,580	$	10	$	327	$	108,263
Certificates of deposit		9,513		-		238		9,275
Investment securities – short-term	$	118,093	$	10	$	565	$	117,538
Long-Term
U.S Treasury securities	$	6,694	$	-	$	650	$	6,044
Certificates of deposit		4,449		-		200		4,249
Investment securities – long-term	$	11,143	$	-	$	850	$	10,293

As of December 31, 2022, investments in debt securities in an unrealized loss position were as follows:

	In Unrealized Loss Position For Less Than 12 Months				In Unrealized Loss Position For Greater Than 12 Months
(In thousands)	Fair Value		Gross Unrealized Losses		Fair Value		Gross Unrealized Losses
U.S Treasury securities	$	-	$	-	$	15,210	$	976
Certificates of deposit		4,201		89		9,323		350
Investment securities	$	4,201	$	89	$	24,532	$	1,326

As of December 31, 2022, there were 62 securities in an unrealized loss position which is due to the market paying a higher interest rate than the coupon rate on these securities. As of December 31, 2022, there are no securities which are other than temporarily impaired as the Company intends to hold these securities until their value recovers and there is negligible credit risk due to the nature of the securities which are backed by the FDIC and U.S. federal government.