Investment Securities

9 Months Ended

Mar. 31, 2024

Investment Securities [Abstract]

Investment Securities

Note 3. Investment Securities

The following table summarizes the amortized cost and fair value of securities available-for-sale and securities held-to-maturity at March 31, 2024 and June 30, 2023, the corresponding amounts of gross unrealized gains recognized in accumulated other comprehensive income and gross unrecognized gains and losses:

	March 31, 2024
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale Securities
Agency mortgage-backed: residential	$	10,752	$	–	$	527	$	10,225
Held-to-maturity Securities
Agency mortgage-backed: residential	$	223	$	–	$	13	$	210

	June 30, 2023
(in thousands)	Amortized cost		Gross unrealized gains		Gross unrealized losses		Estimated fair value
Available-for-sale Securities
Agency mortgage-backed: residential	$	12,649	$	–	$	569	$	12,080
Held-to-maturity Securities
Agency mortgage-backed: residential	$	274	$	–	$	15	$	259

At March 31, 2024 and June 30, 2023 the Company’s debt securities consisted of mortgage-backed securities, which do not have a single maturity date. Actual maturities may differ from contractual maturities, because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.

Our pledged securities totaled $0 and $5.9 million at March 31, 2024 and June 30, 2023, respectively. In addition, at March 31, 2024 and June 30, 2023, our pledged assets included overnight deposits of $0 and $1.5 million, respectively. The Banks began utilizing FHLB letters of credit to secure public deposits in the recently ended quarter.

We evaluated securities in unrealized loss positions for evidence of credit loss, considering duration, severity, financial condition of the issuer, our intention to sell or requirement to sell. Those securities were agency mortgage-backed securities, which carry a very limited amount of risk. Also, we have no intention to sell nor feel that we will be compelled to sell such securities before maturity. Based on our evaluation, no reserve for credit loss was considered necessary. Debt securities in an unrealized loss position as a percent of total debt securities were 100% and 100% at March 31, 2024 and June 30, 2023, respectively. The following table provides the amortized cost, gross unrealized losses, fair value, and length of time the individual securities have been in a continuous unrealized loss position as of March 31, 2024.

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Mortgage-backed securities	$	–		–		–
12 Months or More
Mortgage-backed securities		10,752		527		10,225
Total temporarily impaired AFS securities	$	10,752		527		10,225

Held to Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Mortgage-backed securities	$	–	$	–	$	–
12 Months or More
Mortgage-backed securities		223		13		210
Total temporarily impaired HTM securities	$	223		13		210

As of June 30, 2023:

Available-for-Sale

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Mortgage-backed securities	$	12,649	$	569	$	12,080
12 Months or More
Mortgage-backed securities		-		-		-
Total temporarily impaired AFS securities	$	12,649	$	569	$	12,080

Held to Maturity

(in thousands)	Amortized Cost		Gross Unrealized Losses		Fair Value
Less Than 12 Months
Agency mortgage-backed securities	$	-	$	-	$	-
12 Months or More
Agency mortgage-backed securities		274		15		259
Total temporarily impaired HTM securities	$	274	$	15	$	259