Investment Securities

12 Months Ended

Jun. 30, 2026

Investment Securities

Investment Securities

Note 2: Investment Securities

The amortized cost and estimated fair value of investment securities as of June 30, 2026 and 2025 were as follows:


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
June 30, 2026		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS⁽¹⁾		$	85,003		$	116		$	(8,325)		$	76,794		$	85,003
U.S. government sponsored enterprise CMO⁽²⁾			4,096			—			(30)			4,066			4,096
U.S. SBA securities⁽³⁾			152			—			(2)			150			152
Total investment securities - held to maturity			89,251			116			(8,357)			81,010			89,251

Available for sale
U.S. government agency MBS⁽¹⁾			853			7			(1)			859			859
U.S. government sponsored enterprise MBS⁽¹⁾			343			7			—			350			350
Private issue CMO⁽²⁾			63			—			—			63			63
Total investment securities - available for sale			1,259			14			(1)			1,272			1,272
Total investment securities		$	90,510		$	130		$	(8,358)		$	82,282		$	90,523

(1)	Mortgage-backed securities (“MBS”).

(2)	Collateralized mortgage obligations (“CMO”).

(3)	Small Business Administration ("SBA").


					Gross			Gross			Estimated
		Amortized			Unrealized			Unrealized			Fair			Carrying
June 30, 2025		Cost			Gains			(Losses)			Value			Value
(In Thousands)
Held to maturity
U.S. government sponsored enterprise MBS		$	104,549		$	127		$	(10,305)		$	94,371		$	104,549
U.S. government sponsored enterprise CMO			4,525			14			(108)			4,431			4,525
U.S. SBA securities			325			—			(1)			324			325
Total investment securities - held to maturity			109,399			141			(10,414)			99,126			109,399

Available for sale
U.S. government agency MBS			1,072			10			—			1,082			1,082
U.S. government sponsored enterprise MBS			436			10			—			446			446
Private issue CMO			79			—			—			79			79
Total investment securities - available for sale			1,587			20			—			1,607			1,607
Total investment securities		$	110,986		$	161		$	(10,414)		$	100,733		$	111,006

In fiscal year 2026 and 2025, the Corporation received principal repayments on its investment securities of $20.2 million and $21.5 million, respectively, and did not sell any investment securities. The Corporation did not purchase any investment securities in fiscal year 2026, while a total of $981,000 of investment securities were purchased in fiscal year 2025. As of June 30, 2026 and 2025, the Corporation held investments with an unrealized loss position of $8.4 million and $10.4 million, respectively.

The following tables present the fair value and gross unrealized losses of the Corporation’s investment securities, aggregated by investment category and by the length of time individual securities had been in a continuous unrealized loss position as of June 30, 2026 and 2025:


As of June 30, 2026		Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)		Less Than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Held to maturity
U.S. government sponsored enterprise MBS		$	—		$	—		$	73,229		$	8,325		$	73,229		$	8,325
U.S. government sponsored enterprise CMO			981			3			3,085			27			4,066			30
U.S. SBA securities			—		$	—			150			2			150			2
Total investment securities - held to maturity			981			3			76,464			8,354			77,445			8,357

Available for sale
U.S government agency MBS			181			—			28			1			209			1
Private issue CMO			—			—			16			—			16			—
Total investment securities - available for sale			181			—			44			1			225			1
Total investment securities		$	1,162		$	3		$	76,508		$	8,355		$	77,670		$	8,358


As of June 30, 2025		Unrealized Holding Losses						Unrealized Holding Losses						Unrealized Holding Losses
(In Thousands)		Less Than 12 Months						12 Months or More						Total
		Fair			Unrealized			Fair			Unrealized			Fair			Unrealized
Description of Securities		Value			Losses			Value			Losses			Value			Losses
Held to maturity
U.S. government sponsored enterprise MBS		$	—		$	—		$	90,022		$	10,305		$	90,022		$	10,305
U.S. government sponsored enterprise CMO			—			—			3,435			108			3,435			108
U.S. SBA securities			324			1			—			—			324			1
Total investment securities - held to maturity			324			1			93,457			10,413			93,781			10,414

Available for sale
U.S government agency MBS			37			—			13			—			50			—
Private issue CMO			—			—			17			—			17			—
Total investment securities - available for sale			37			—			30			—			67			—
Total investment securities		$	361		$	1		$	93,487		$	10,413		$	93,848		$	10,414

The unrealized losses on investment securities were attributable to changes in interest rates relative to when the investment securities were purchased and not due to the credit quality of the investment securities, which are predominately U.S. government sponsored enterprise (“GSE”) securities that are either explicitly or implicitly guaranteed by the U.S. government and have no history of credit losses. Therefore, the Corporation determined that the unrealized losses are due to the fluctuating nature of interest rates, and not related to any credit risks in the investment portfolio. The Bank does not currently intend to sell any investment securities classified as held to maturity or available for sale. Accordingly, the Corporation continues to account for held to maturity securities at amortized cost and available for sale securities at fair value. As a part of the Corporation’s monthly risk assessment, the Corporation runs a number of stressed liquidity scenarios

to determine if it is more likely than not that the Bank will be required to sell the investment securities before the recovery of its amortized cost basis. These liquidity scenarios support management’s assessment that the Corporation has the ability to hold its held to maturity securities until maturity and its available for sale securities until recovery of their amortized cost basis and that it is not more likely than not that the Corporation will be required to sell the securities before recovery of their amortized cost basis. Accordingly, the Corporation concluded that no allowance for credit losses was required on investment securities held to maturity and available for sale as of June 30, 2026 and 2025.

In order to maintain adequate liquidity, the Bank has established borrowing facilities with various counterparties. The Bank had a remaining borrowing capacity of $255.9 million as of June 30, 2026 at the FHLB of San Francisco. In addition, the Bank has approximately $187.5 million of discount window borrowing capacity at the FRB of San Francisco collateralized by single-family loans held for investment totaling $300.4 million and investment securities totaling $18.8 million as of June 30, 2026. As of June 30, 2026, the Bank also has an unsecured borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under the Federal Reserve discount window or correspondent bank facility as of June 30, 2026. Total available borrowing capacity across all sources was approximately $493.4 million at June 30, 2026.

At June 30, 2025, the Bank had a remaining borrowing capacity of $282.3 million at the FHLB of San Francisco. In addition, the Bank had approximately $142.5 million of discount window borrowing capacity at the FRB of San Francisco collateralized by single-family loans held for investment totaling $227.0 million and investment securities totaling $24.8 million at June 30, 2025. As of June 30, 2025, the Bank also had an unsecured borrowing arrangement in the form of a federal funds facility with its correspondent bank for $50.0 million. The Bank had no advances under the Federal Reserve discount window or the correspondent bank facility as of June 30, 2025. Total available borrowing capacity across all sources was approximately $474.8 million at June 30, 2025.

Contractual maturities of investment securities as of June 30, 2026 and 2025, were as follows:


		June 30, 2026						June 30, 2025
					Estimated						Estimated
		Amortized			Fair			Amortized			Fair
(In Thousands)		Cost			Value			Cost			Value
Held to maturity
Due in one year or less		$	936		$	925		$	69		$	68
Due after one through five years			22,439			21,255			4,921			4,760
Due after five through ten years			47,884			43,239			40,773			38,224
Due after ten years			17,992			15,591			63,636			56,074
Total investment securities - held to maturity			89,251			81,010			109,399			99,126

Available for sale
Due in one year or less			—			—			—			—
Due after one through five years			—			—			—			—
Due after five through ten years			1,169			1,181			1,483			1,501
Due after ten years			90			91			104			106
Total investment securities - available for sale			1,259			1,272			1,587			1,607
Total investment securities		$	90,510		$	82,282		$	110,986		$	100,733