Investment Securities

6 Months Ended

Dec. 31, 2023

Investment Securities

Investment Securities

Note 5 – Investment Securities

Debt Securities

The amortized cost, gross unrealized gains and losses, and fair value of investments in debt securities are as follows:

	December 31, 2023
			Gross		Gross		Allowance
	Amortized		Unrealized		Unrealized		for Credit		Fair
(Dollars in thousands)	Cost		Gains		Losses		Losses		Value
Available For Sale:
Mortgage-backed securities	$	120,420	$	99	$	(15,664)	$	—	$	104,855
U.S. agency collateralized mortgage obligations		9,586		—		(1,705)		—		7,881
U.S. government agency securities		890		—		(81)		—		809
Municipal bonds		20,040		—		(4,814)		—		15,226
Corporate bonds		37,200		—		(5,033)		—		32,167
Total Available For Sale	$	188,136	$	99	$	(27,297)	$	—	$	160,938
	December 31, 2023
			Gross		Gross				Allowance
	Amortized		Unrealized		Unrealized		Fair		for Credit
(Dollars in thousands)	Cost		Gains		Losses		Value		Losses
Held To Maturity:
Mortgage-backed securities	$	90,904	$	—	$	(15,121)	$	75,783	$	—
U.S. government agency securities		5,452		4		(48)		5,408		—
Municipal bonds		48		—		—		48		—
Total Held To Maturity	$	96,404	$	4	$	(15,169)	$	81,239	$	—

	June 30, 2023
			Gross		Gross
	Amortized		Unrealized		Unrealized		Fair
(Dollars in thousands)	Cost		Gains		Losses		Value
Available For Sale:
Mortgage-backed securities	$	124,252	$	21	$	(17,517)	$	106,756
U.S. agency collateralized mortgage obligations		10,074		—		(1,782)		8,292
U.S. government agency securities		3,881		140		(89)		3,932
Municipal bonds		20,081		—		(5,102)		14,979
Corporate bonds		37,200		—		(6,032)		31,168
Total Available For Sale	$	195,488	$	161	$	(30,522)	$	165,127
Held To Maturity:
Mortgage-backed securities	$	94,648	$	—	$	(17,275)	$	77,373
U.S. government agency securities		4,982		—		(102)		4,880
Municipal bonds		60		—		—		60
Total Held To Maturity	$	99,690	$	—	$	(17,377)	$	82,313

The Company recognized $85 thousand of gross gains on the sale of $2.4 million of investment securities during the three and six months ended December 31, 2023. The Company did not sell any investment securities during the three and six months ended December 31, 2022.

The amortized cost and fair value of debt securities, by contractual maturity, are shown below. Maturities for mortgage-backed securities are dependent upon the rate environment and prepayments of the underlying loans. Expected maturities may differ from contractual maturities because the securities may be called or prepaid with or without penalties.

	December 31, 2023
	Available For Sale				Held To Maturity
	Amortized		Fair		Amortized		Fair
(Dollars in thousands)	Cost		Value		Cost		Value
Due in one year or less	$	—	$	—	$	5,500	$	5,456
Due after one year through five years		8		8		—		—
Due after five years through ten years		41,872		35,944		—		—
Due after ten years		146,256		124,986		90,904		75,783
	$	188,136	$	160,938	$	96,404	$	81,239

The following tables provide information on the gross unrealized losses and fair market value of the Company's investments for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and June 30, 2023:

	December 31, 2023
	Less than 12 Months				12 Months or More				Total		Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Available For Sale:
Mortgage-backed securities	$	—	$	—	$	100,300	$	(15,664)	$	100,300	$	(15,664)
U.S. agency collateralized mortgage obligations		—		—		7,881		(1,705)		7,881		(1,705)
U.S. government agency securities		—		—		809		(81)		809		(81)
Municipal bonds		—		—		15,226		(4,814)		15,226		(4,814)
Corporate bonds		2,889		(361)		29,278		(4,672)		32,167		(5,033)
		2,889		(361)		153,494		(26,936)		156,383		(27,297)
Held To Maturity:
Mortgage-backed securities		—		—		75,783		(15,121)		75,783		(15,121)
U.S. government agency securities		—		—		4,447		(48)		4,447		(48)
		—		—		80,230		(15,169)		80,230		(15,169)
Total Temporarily Impaired Securities	$	2,889	$	(361)	$	233,724	$	(42,105)	$	236,613	$	(42,466)

	June 30, 2023
	Less than 12 Months				12 Months or More				Total		Total
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
(Dollars in thousands)	Value		Losses		Value		Losses		Value		Losses
Available For Sale:
Mortgage-backed securities	$	16,794	$	(967)	$	86,371	$	(16,550)	$	103,165	$	(17,517)
U.S. agency collateralized mortgage obligations		—		—		8,292		(1,782)		8,292		(1,782)
U.S. government agency securities		—		—		943		(89)		943		(89)
Municipal bonds		—		—		14,979		(5,102)		14,979		(5,102)
Corporate bonds		10,715		(1,435)		20,453		(4,597)		31,168		(6,032)
		27,509		(2,402)		131,038		(28,120)		158,547		(30,522)
Held To Maturity:
Mortgage-backed securities		—		—		77,373		(17,275)		77,373		(17,275)
U.S. government agency securities		4,880		(102)		—		—		4,880		(102)
		4,880		(102)		77,373		(17,275)		82,253		(17,377)
Total Temporarily Impaired Securities	$	32,389	$	(2,504)	$	208,411	$	(45,395)	$	240,800	$	(47,899)

At December 31, 2023, the Company had two securities in the less than 12 months loss position and 123 securities in the 12 month or greater loss position.  The unrealized loss on securities is due to current interest rate levels relative to the Company’s cost. Because the unrealized losses are due to current interest rate levels relative to the Company’s cost and not credit quality, and because the Company does not intend to sell the investments and it is not more likely than not that the Company will be required to sell these investments before recovery of its amortized cost, which may be at maturity, the Company does not consider the unrealized losses to be credit losses  at December 31, 2023 and the Company does not consider these investments to be other-than temporarily impaired at June 30, 2023. There were 126 investment securities that were temporarily impaired at June 30, 2023.  The Company did not recognize any credit losses on these securities for the three and six months ended December 31, 2023, or other-than temporary impairment charges for the three and six months ended December 31, 2022.

At December 31, 2023 and June 30, 2023, $2.9 million and $2.5 million, respectively, in the carrying value of investment securities were pledged to secure municipal deposits.

Equity Securities

The Company had one equity security with a fair value of $1.9 million as of December 31, 2023 and $1.6 million as of June 30, 2023.  During the three and six months ended December 31, 2023, the Company recorded $148 thousand and $221 thousand of unrealized gains, respectively, and during the three and six months ended December 31, 2022, the Company recorded $54 thousand of unrealized gains and $219 thousand of unrealized losses, respectively, which were recorded in Unrealized gain (loss) on equity securities in the Consolidated Statements of Income.