XML 37 R13.htm IDEA: XBRL DOCUMENT v3.23.2
SECURITIES
 12 Months Ended
Jun. 30, 2023
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The amortized cost, carrying amount and fair value for the securities available-for-sale for the following periods were:
June 30, 2023
 TradingAvailable-for-sale
(Dollars in thousands)Fair
Value		Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
Agencies1
$— $27,024 $— $(3,077)$23,947 
Non-agency2
— 210,271 711 (5,977)205,005 
Total mortgage-backed securities— 237,295 711 (9,054)228,952 
Non-MBS:
Municipal758 3,656 — (258)3,398 
Asset-backed securities and structured notes— — — — — 
Total Non-MBS758 3,656 — (258)3,398 
Total debt securities$758 $240,951 $711 $(9,312)$232,350 
  June 30, 2022
TradingAvailable-for-sale
(Dollars in thousands)Fair
Value		Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
Agencies1
$— $27,722 $9 $(2,406)$25,325 
Non-agency2
— 187,616 1,832 (2,634)186,814 
Total mortgage-backed securities— 215,338 1,841 (5,040)212,139 
Non-MBS:
Municipal1,758 3,529 — (281)3,248 
Asset-backed securities and structured notes— 47,000 131 — 47,131 
Total Non-MBS1,758 50,529 131 (281)50,379 
Total debt securities$1,758 $265,867 $1,972 $(5,321)$262,518 
1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily by first-lien mortgage loans on commercial properties or by pools of 1-4 family residential first mortgages. Primarily super senior securities secured by prime, Alt-A or pay-option ARM mortgages.
No credit losses were recognized on available-for-sale securities in the years ended June 30, 2023, 2022 and 2021. Based on the underlying government guarantees and other credit protection supporting our securities, there was no amount in the allowance for credit losses for available-for-sale debt securities at June 30, 2023 and June 30, 2022. The Company has no allowance for the available-for-sale debt securities in an unrealized loss position based on an analysis of: (1) the credit characteristics of the securities, such as the forecasted cash flows, credit ratings, credit enhancement, and external government backing as applicable, and (2) whether the Company is intending to sell or is required to sell any securities before recovering the amortized cost basis of the securities. The unrealized losses on available-for-sale securities are primarily driven by the increase in interest rates since the securities were purchased.
The Company’s non-agency MBS available-for-sale portfolio with a total fair value of $205.0 million at June 30, 2023 consists of 17 different issues of senior and super senior securities.
The face amounts of debt securities available-for-sale that were pledged to secure borrowings at June 30, 2023 and 2022 were $0.9 million and $1.2 million, respectively.
The securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position were as follows:
June 30, 2023
 Available-for-sale securities in loss position for
 Less Than 12
Months		More Than 12
Months		Total
(Dollars in thousands)Fair
Value		Gross Unrealized LossesFair
Value		Gross Unrealized LossesFair
Value		Gross Unrealized Losses
MBS:
Agencies$3,182 $(16)$20,642 $(3,061)$23,824 $(3,077)
Non-agency107,982 (1,808)95,385 (4,169)203,367 (5,977)
Total MBS securities111,164 (1,824)116,027 (7,230)227,191 (9,054)
Non-MBS:
Municipal— — 3,398 (258)3,398 (258)
Total Non-MBS— — 3,398 (258)3,398 (258)
Total debt securities$111,164 $(1,824)$119,425 $(7,488)$230,589 $(9,312)
 June 30, 2022
Available-for-sale securities in loss position for
Less Than 12
Months		More Than 12
Months		Total
(Dollars in thousands)Fair
Value		Gross Unrealized LossesFair
Value		Gross Unrealized LossesFair
Value		Gross Unrealized Losses
MBS:
Agencies$16,446 $(1,338)$8,097 $(1,068)$24,543 $(2,406)
Non-agency92,796 (2,204)4,751 (430)97,547 (2,634)
Total MBS securities109,242 (3,542)12,848 (1,498)122,090 (5,040)
Non-MBS:
Municipal3,248 (281)— — 3,248 (281)
Total Non-MBS3,248 (281)— — 3,248 (281)
Total debt securities$112,490 $(3,823)$12,848 $(1,498)$125,338 $(5,321)
There were 37 and 14 securities that were in a continuous loss position as of June 30, 2023 and June 30, 2022 for a period of more than 12 months. There were 17 and 25, respectively, securities that were in a continuous loss position as of June 30, 2023 and June 30, 2022 for a period of less than 12 months.
During the fiscal years ended June 30, 2023 and 2022, there were no sales of securities that realized any gain or loss. Sales of securities occurred in the year ended June 30, 2021 in the amount of $70.8 million with no realized gain or loss, for which cash was collected in the year ended June 30, 2022.
The following table sets forth the expected maturity distribution of our mortgage-backed securities (“MBS”), which is based on assumed prepayment rates, and the contractual maturity distribution of our Non-MBS securities:
At June 30, 2023
(Dollars in thousands)Total AmountDue Within One YearDue after One but within Five YearsDue after Five but within Ten YearsDue After Ten Years
MBS:
Agency1
$27,024 $6,276 $13,110 $5,522 $2,116 
Non-Agency2
$210,271 $92,361 $115,533 $1,729 $648 
Total MBS$237,295 $98,637 $128,643 $7,251 $2,764 
Non-MBS
Municipal$3,656 $— $— $— $3,656 
Total Non-MBS$3,656 $— $— $— $3,656 
Available-for-sale—Amortized Cost$240,951 $98,637 $128,643 $7,251 $6,420 
Available-for-sale—Fair value$232,350 $95,913 $123,730 $6,576 $6,131 
1 Includes securities guaranteed by Ginnie Mae, a U.S. government agency, and the government sponsored enterprises Fannie Mae and Freddie Mac.
2 Private sponsors of securities collateralized primarily by pools of 1-4 family residential, Alt-A or pay-option ARM mortgages and commercial mortgages.

The components of the Company’s accumulated other comprehensive income (loss) are as follows:
At June 30,
(Dollars in thousands)20232022
Available-for-sale debt securities—net unrealized gains (losses)$(8,601)$(3,349)
Available-for-sale debt securities—non-credit related(845)(845)
Subtotal(9,446)(4,194)
Tax benefit (expense)2,836 1,261 
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)$(6,610)$(2,933)