Debt Securities |
Note 3- Debt Securities Debt securities have been classified in the consolidated balance sheet according to management’s intent. The carrying value of securities as of March 31, 2023 and June 30, 2022, consists of the following: | | | | | | | | | | | Unaudited | | | | | | | March 31, 2023 | | June 30, 2022 | | Available for sale debt securities, at fair value | | $ | 9,237,899 | | $ | 10,617,238 | | Held to maturity debt securities, at amortized cost | | | 517,035 | | | 532,363 | | | | $ | 9,754,934 | | $ | 11,149,601 | |
The amortized cost and fair value of debt securities, with gross unrealized gains and losses, are as follows: | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | | | | | Cost | | Gains | | Losses | | Fair Value | March 31, 2023 | | | | | | | | | | | | | Available for sale debt securities | | | | | | | | | | | | | States and municipalities | | $ | 904,237 | | $ | 800 | | $ | (7,737) | | $ | 897,300 | Mortgage-backed | | | 2,108,192 | | | 24,202 | | | (104,650) | | | 2,027,744 | Corporate bonds | | | 7,119,172 | | | — | | | (806,317) | | | 6,312,855 | | | $ | 10,131,601 | | $ | 25,002 | | $ | (918,704) | | $ | 9,237,899 | Held to maturity debt securities | | | | | | | | | | | | | Mortgage-backed | | $ | 517,035 | | $ | — | | $ | (124,986) | | $ | 392,049 |
| | | | | | | | | | | | | | | | | | Gross | | Gross | | | | | | Amortized | | Unrealized | | Unrealized | | | | | | Cost | | Gains | | Losses | | Fair Value | June 30, 2022 | | | | | | | | | | | | | Available for sale debt securities | | | | | | | | | | | | | States and municipalities | | $ | 1,050,034 | | $ | 25,395 | | $ | (7,523) | | $ | 1,067,906 | Mortgage-backed | | | 2,825,546 | | | 27,189 | | | (113,681) | | | 2,739,054 | Corporate bonds | | | 7,178,367 | | | — | | | (368,089) | | | 6,810,278 | | | $ | 11,053,947 | | $ | 52,584 | | $ | (489,293) | | $ | 10,617,238 | Held to maturity debt securities | | | | | | | | | | | | | Mortgage-backed | | $ | 532,363 | | $ | — | | $ | (113,363) | | $ | 419,000 |
Securities with a carrying value of approximately $473,000 and $667,000 as of March 31, 2023 and June 30, 2022, were pledged to secure public deposits and debt. The amortized cost and fair value of debt securities by contractual maturity at March 31, 2023, follows: | | | | | | | | | | | | | | | Available for Sale Debt Securities | | Held to Maturity Debt Securities | | | Amortized | | Fair | | Amortized | | Fair | | | Cost | | Value | | Cost | | Value | March 31, 2023 | | | | | | | | | | | | | Due in one year or less | | $ | 508,004 | | $ | 480,048 | | $ | — | | $ | — | Due from more than one to five years | | | 2,871,858 | | | 2,776,526 | | | — | | | — | Due from more than five to ten years | | | 4,643,547 | | | 3,953,581 | | | — | | | — | | | | 8,023,409 | | | 7,210,155 | | | — | | | — | Mortgage-backed securities | | | 2,108,192 | | | 2,027,744 | | | 517,035 | | | 392,049 | | | $ | 10,131,601 | | $ | 9,237,899 | | $ | 517,035 | | $ | 392,049 | | | | | | | | | | | | | |
There were no sales of available for sale debt securities during the three and nine month periods ended March 31, 2023 and 2022. The Company did recognize gains of $24,000 and $14,000, respectively, on bonds that matured during the nine months ended March 31, 2023 and 2022 related to previous other than temporary impairment charges taken on these securities. The following table shows the gross unrealized losses and fair value of the Company’s securities with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2023 and June 30, 2022: | | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | Gross | | | | | Gross | | | | | Gross | | | | | | Unrealized | | | | | Unrealized | | | | | Unrealized | | | | | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | March 31, 2023 | | | | | | | | | | | | | | | | | | | Available for sale debt securities | | | | | | | | | | | | | | | | | | | States and municipalities | | $ | (7,737) | | $ | 777,017 | | $ | — | | $ | — | | $ | (7,737) | | $ | 777,017 | Mortgage-backed | | | (6,748) | | | 288,988 | | | (97,902) | | | 1,610,697 | | | (104,650) | | | 1,899,685 | Corporate bonds | | | (85,000) | | | 415,000 | | | (721,317) | | | 5,897,855 | | | (806,317) | | | 6,312,855 | | | $ | (99,485) | | $ | 1,481,005 | | $ | (819,219) | | $ | 7,508,552 | | $ | (918,704) | | $ | 8,989,557 | Held to maturity debt securities | | | | | | | | | | | | | | | | | | | Mortgage-backed securities | | $ | — | | $ | — | | $ | (124,986) | | $ | 392,049 | | $ | (124,986) | | $ | 392,049 |
| | | | | | | | | | | | | | | | | | | | | Less than 12 Months | | 12 Months or More | | Total | | | Gross | | | | | Gross | | | | | Gross | | | | | | Unrealized | | | | | Unrealized | | | | | Unrealized | | | | | | Losses | | Fair Value | | Losses | | Fair Value | | Losses | | Fair Value | June 30, 2022 | | | | | | | | | | | | | | | | | | | Available for sale debt securities | | | | | | | | | | | | | | | | | | | States and municipalities | | $ | (6,144) | | $ | 688,504 | | $ | (1,379) | | $ | 58,621 | | $ | (7,523) | | $ | 747,125 | Mortgage-backed | | | (98,106) | | | 2,421,426 | | | (15,575) | | | 101,977 | | | (113,681) | | | 2,523,403 | Corporate bonds | | | (302,991) | | | 5,791,516 | | | (65,098) | | | 1,018,762 | | | (368,089) | | | 6,810,278 | | | $ | (407,241) | | $ | 8,901,446 | | $ | (82,052) | | $ | 1,179,360 | | $ | (489,293) | | $ | 10,080,806 | Held to maturity debt securities | | | | | | | | | | | | | | | | | | | Mortgage-backed securities | | $ | (113,363) | | $ | 419,000 | | $ | — | | $ | — | | $ | (113,363) | | $ | 419,000 |
There were 29 securities in an unrealized loss position in the less than 12 months category and 38 securities in the 12 months or more category at March 31, 2023. There were 58 securities in an unrealized loss position in the less than 12 months category and six securities in the 12 months or more category at June 30, 2022. All of these unrealized losses were caused by interest rate changes. The contractual terms of the securities do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investment. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider the securities to be other-than-temporarily impaired.
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