Securities

9 Months Ended

Mar. 31, 2026

(3)

Securities

The following tables summarize the amortized cost and fair value of securities available-for-sale by major type:



		At March 31, 2026
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value
U.S. Treasury securities	$	5,836	$	-	$	47	$	5,789
U.S. government sponsored enterprises		7,097		-		726		6,371
State and political subdivisions		214,530		1,113		-		215,643
Mortgage-backed securities-residential		53,539		209		2,869		50,879
Mortgage-backed securities-multi-family		88,524		-		12,620		75,904
Corporate debt securities		15,954		57		396		15,615
Total securities available-for-sale	$	385,480	$	1,379	$	16,658	$	370,201



		At June 30, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value
U.S. Treasury securities	$	10,815	$	-	$	362	$	10,453
U.S. government sponsored enterprises		13,029		-		1,385		11,644
State and political subdivisions		208,450		1,394		-		209,844
Mortgage-backed securities-residential		34,382		212		3,007		31,587
Mortgage-backed securities-multi-family		88,874		-		14,277		74,597
Corporate debt securities		18,416		81		560		17,937
Total securities available-for-sale	$	373,966	$	1,687	$	19,591	$	356,062

⁽¹⁾

Amortized cost excludes accrued interest receivable of $5.1 million and $4.5 million at March 31, 2026 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statements of financial condition.

There was no allowance for credit losses on securities available-for-sale as of quarter ended March 31, 2026 and June 30, 2025, as each of the securities in the portfolio are investment grade, current as to principal and interest, and their price changes are consistent with interest and credit spreads when adjusting for convexity, rating, and industry differences.

The following tables summarize the amortized cost, fair value, and allowance for credit loss on securities held-to-maturity by major type:



		At March 31, 2026
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value		Allowance		Net carrying value
U.S. Treasury securities	$	13,890	$	-	$	633	$	13,257	$	-	$	13,890
State and political subdivisions		479,636		10,492		27,595		462,533		52		479,584
Mortgage-backed securities-residential		171,074		1,066		2,489		169,651		-		171,074
Mortgage-backed securities-multi-family		121,738		-		9,727		112,011		-		121,738
Corporate debt securities		28,500		166		1,066		27,600		497		28,003
Other securities		26		-		-		26		1		25
Total securities held-to-maturity	$	814,864	$	11,724	$	41,510	$	785,078	$	550	$	814,314



		At June 30, 2025
(In thousands)		Amortized cost (1)		Unrealized gains		Unrealized losses		Fair value		Allowance		Net carrying value
U.S. Treasury securities	$	15,850	$	-	$	868	$	14,982	$	-	$	15,850
State and political subdivisions		460,959		8,938		32,028		437,869		40		460,919
Mortgage-backed securities-residential		138,468		1,388		2,327		137,529		-		138,468
Mortgage-backed securities-multi-family		130,119		-		11,963		118,156		-		130,119
Corporate debt securities		31,270		55		1,756		29,569		507		30,763
Other securities		29		-		-		29		1		28
Total securities held-to-maturity	$	776,695	$	10,381	$	48,942	$	738,134	$	548	$	776,147

⁽¹⁾

Amortized cost excludes accrued interest receivable of $7.0 million and $4.9 million at March 31, 2026 and June 30, 2025, respectively, which is included in accrued interest receivable in the consolidated statements of financial condition.

U.S. Treasury and mortgage-backed securities are issued by U.S. government entities and agencies. These securities are either explicitly and/or implicitly guaranteed by the U.S. government as to timely repayment of principal and interest, are highly rated by major rating agencies, and have a long history of zero credit losses. Therefore, the Company determined a zero credit loss assumption and did not calculate or record an allowance for credit loss for these securities. An allowance for credit losses on investment securities held-to-maturity has been recorded for certain municipal securities issued by state and political subdivisions and corporate debt securities, to account for expected lifetime credit loss using the Current Expected Credited Losses (“CECL”) methodology.

The Company’s current policies generally limit securities investments to U.S. government and securities of government sponsored enterprises, federal funds sold, municipal bonds, corporate debt obligations, subordinated debt of banks and certain mutual funds. In addition, the Company’s policies permit investments in mortgage-backed securities, including securities issued and guaranteed by Fannie Mae, Freddie Mac, and GNMA, and collateralized mortgage obligations issued by these entities. As of March 31, 2026, all mortgage-backed securities including collateralized mortgage obligations were securities of government sponsored enterprises, no private-label mortgage-backed securities or collateralized mortgage obligations were held in the securities portfolio. The Company’s investments in state and political subdivisions securities generally are municipal obligations that are general obligations supported by the general taxing authority of the issuer, and in some cases are insured. The obligations issued by school districts are supported by state aid. Primarily, these investments are issued by municipalities within New York State.

The Company’s current securities investment strategy utilizes a risk management approach of diversified investing among three categories: short-, intermediate- and long-term. The emphasis of this approach is to increase overall investment securities yields while managing interest rate risk. The Company will only invest in high quality securities, as determined by management’s analysis at the time of purchase. The Company generally does not engage in any balance sheet derivative or hedging investment transactions, such as balance sheet interest rate swaps or caps.

The following table summarizes the activity in the allowance for credit losses on securities held-to-maturity:


	For the three months ended March 31,
(In thousands)		2026			2025
Balance at beginning of period	$	616		$	439
Benefit for credit losses		(66	)		(17	)
Balance at end of period	$	550		$	422


	For the nine months ended March 31,
(In thousands)		2026		2025
Balance at beginning of period	$	548	$	483
Provision (benefit) for credit losses		2		(61	)
Balance at end of period	$	550	$	422

The following table shows fair value and gross unrealized losses, aggregated by security category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2026.








	Less than 12 Months						More than 12 Months						Total
(In thousands, except number of securities)			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities
Securities available-for-sale:
U.S. Treasury securities		$	245	$	-	1		$	5,544	$	47	3		$	5,789	$	47	4
U.S. government sponsored enterprises			-		-	-			6,371		726	2			6,371		726	2
State and political subdivisions			-		-	-			22		-	1			22		-	1
Mortgage-backed securities-residential			18,040		294	7			19,469		2,575	17			37,509		2,869	24
Mortgage-backed securities-multi-family			-		-	-			75,904		12,620	30			75,904		12,620	30
Corporate debt securities			443		57	1			13,160		339	8			13,603		396	9
Total securities available-for-sale			18,728		351	9			120,470		16,307	61			139,198		16,658	70
Securities held-to-maturity:
U.S. Treasury securities			-		-	-			13,257		633	4			13,257		633	4
State and political subdivisions			28,030		742	208			212,156		26,853	1,282			240,186		27,595	1,490
Mortgage-backed securities-residential			72,274		689	21			23,971		1,800	23			96,245		2,489	44
Mortgage-backed securities-multi-family			-		-	-			112,011		9,727	42			112,011		9,727	42
Corporate debt securities			6,876		124	3			14,307		942	16			21,183		1,066	19
Total securities held-to-maturity			107,180		1,555	232			375,702		39,955	1,367			482,882		41,510	1,599
Total securities		$	125,908	$	1,906	241		$	496,172	$	56,262	1,428		$	622,080	$	58,168	1,669







	Less than 12 months						More than 12 months						Total
(In thousands, except number of securities)			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities			Fair value		Unrealized losses	Number of securities
Securities available-for-sale:
U.S. Treasury securities		$	241	$	1	1		$	10,212	$	361	5		$	10,453	$	362	6
U.S. government sponsored enterprises			-		-	-			11,644		1,385	5			11,644		1,385	5
State and political subdivisions			-		-	-			43		-	1			43		-	1
Mortgage-backed securities-residential			-		-	-			20,872		3,007	21			20,872		3,007	21
Mortgage-backed securities-multi-family			-		-	-			74,597		14,277	30			74,597		14,277	30
Corporate debt securities			-		-	-			15,919		560	11			15,919		560	11
Total securities available-for-sale			241		1	1			133,287		19,590	73			133,528		19,591	74
Securities held-to-maturity:
U.S. Treasury securities			-		-	-			14,982		868	5			14,982		868	5
State and political subdivisions			23,577		339	154			231,645		31,689	1,511			255,222		32,028	1,665
Mortgage-backed securities-residential			9,470		151	4			26,541		2,176	26			36,011		2,327	30
Mortgage-backed securities-multi-family			-		-	-			118,156		11,963	45			118,156		11,963	45
Corporate debt securities			3,705		45	3			22,209		1,711	17			25,914		1,756	20
Total securities held-to-maturity			36,752		535	161			413,533		48,407	1,604			450,285		48,942	1,765
Total securities		$	36,993	$	536	162		$	546,820	$	67,997	1,677		$	583,813	$	68,533	1,839

There were no transfers of securities available-for-sale to held-to-maturity during the three and nine months ended March 31, 2026 and 2025. During the nine months ended March 31, 2026, a loss of $576,000 was recognized from a sale of four securities available-for-sale with a total par value of $8.3 million. During the three and nine months ended March 31, 2025, a loss of $665,000 was recognized from a sale of two securities available-for-sale with a total par value of $7.0 million. The proceeds were used to fund higher yielding investments.

The estimated fair values of debt securities at March 31, 2026, by contractual maturity are shown below. Expected maturities may differ from contractual maturities because issuers may have the right to call or prepay obligations, with or without call or prepayment penalties.

(In thousands)


Securities available-for-sale		Amortized cost		Fair value
Within one year	$	224,210	$	225,189
After one year through five years		17,707		16,915
After five years through ten years		1,500		1,314
After ten years		-		-
Total securities available-for-sale		243,417		243,418
Mortgage-backed securities		142,063		126,783
Total securities available-for-sale		385,480		370,201

Securities held-to-maturity
Within one year		59,684		59,855
After one year through five years		165,386		166,259
After five years through ten years		219,887		204,021
After ten years		77,095		73,281
Total securities held-to-maturity		522,052		503,416
Mortgage-backed securities		292,812		281,662
Total securities held-to-maturity		814,864		785,078
Total securities	$	1,200,344	$	1,155,279

At March 31, 2026 and June 30, 2025, securities with an aggregate fair value of $1.1 billion and $1.0 billion, respectively, were pledged as collateral for deposits in excess of FDIC insurance limits for various municipalities placing deposits with the Commercial Bank. At March 31, 2026 and June 30, 2025, securities with an aggregate fair value of $15.9 million and $18.2 million, respectively, were pledged as collateral for potential borrowings at the Federal Reserve Bank discount window. The Company did not participate in any securities lending programs during the three and nine months ended March 31, 2026 or 2025.

Federal Home Loan Bank Stock

Federal law requires a member institution of the Federal Home Loan Bank (“FHLB”) system to hold stock of its district FHLB according to a predetermined formula. This stock is restricted in that it can only be sold to the FHLB or to another member institution, and all sales of FHLB stock must be at par. As a result of these restrictions FHLB stock is carried at cost. FHLB stock is held as a long-term investment and its value is determined based on the ultimate recoverability of the par value. Estimated impairment of this investment is evaluated quarterly and is a matter of judgment that reflects management’s view of the FHLB’s long-term performance, which includes factors such as the following: its operating performance; the severity and duration of declines in the fair value of its net assets related to its capital stock amount; its commitment to make payments required by law or regulation and the level of such payments in relation to its operating performance; the impact of legislative and regulatory changes on the FHLB, and accordingly, on the members of the FHLB; and its liquidity and funding position. After evaluating these considerations, the Company concluded that the par value of its investment in FHLB stock will be recovered and therefore, no impairment was recorded during the three and nine months ended March 31, 2026 or 2025.