Available for Sale Securities

9 Months Ended

Mar. 31, 2024

Available for Sale Securities

Available for Sale Securities

Note 3:  Available for Sale Securities

The amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale consisted of the following:

	March 31, 2024
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for		Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Value
Debt and equity securities:
Obligations of states and political subdivisions	$	30,008	$	25	$	(1,925)	$	—	$	28,108
Corporate obligations		35,826		126		(2,139)		—		33,813
Asset backed securities		63,561		1,514		(280)		—		64,795
Other securities		5,657		21		(70)		—		5,608
Total debt and equity securities		135,052		1,686		(4,414)		—		132,324
Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		107,807		645		(7,471)		—		100,981
Commercial MBS issued by GSEs		65,311		150		(6,404)		—		59,057
CMOs issued by GSEs		149,899		58		(8,630)		—		141,327
Total MBS and CMOs		323,017		853		(22,505)		—		301,365
Total AFS securities	$	458,069	$	2,539	$	(26,919)	$	—	$	433,689

	June 30, 2023
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for		Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Value
Debt and equity securities:
Obligations of states and political subdivisions	$	45,285	$	20	$	(2,737)	$	—	$	42,568
Corporate obligations		35,700		19		(3,181)		—		32,538
Asset backed securities		67,897		1,274		(545)				68,626
Other securities		3,587		39		(56)		—		3,570
Total debt and equity securities		152,469		1,352		(6,519)		—		147,302
Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		97,612		122		(7,610)		—		90,124
Commercial MBS issued by GSEs		60,333		11		(6,959)		—		53,385
CMOs issued by GSEs		135,202		9		(8,468)		—		126,743
Total MBS and CMOs		293,147		142		(23,037)		—		270,252
Total AFS securities	$	445,616	$	1,494	$	(29,556)	$	—	$	417,554

The amortized cost and estimated fair value of investment and MBS, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.

	March 31, 2024
	Amortized		Estimated
(dollars in thousands)	Cost		Fair Value
Within one year	$	1,455	$	1,438
After one year but less than five years		25,465		24,522
After five years but less than ten years		59,624		57,701
After ten years		48,508		48,663
Total investment securities		135,052		132,324
MBS and CMOs		323,017		301,365
Total AFS securities	$	458,069	$	433,689

The carrying value of investment and MBS pledged as collateral to secure public deposits amounted to $268.0 million and $253.9 million at March 31, 2024 and June 30, 2023, respectively. The securities pledged consist of marketable securities, including $137.3 million and $129.2 million of MBS, $107.5 million and $94.8 million of CMOs, $18.7 million and $26.5 million of State and Political Subdivisions Obligations, and $4.5 million and $3.4 million of Other Securities at March 31, 2024 and June 30, 2023, respectively.

The following tables show the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at March 31, 2024 and June 30, 2023:

	March 31, 2024
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	1,831	$	8	$	21,855	$	1,917	$	23,686	$	1,925
Corporate obligations		—		—		26,908		2,139		26,908		2,139
Asset backed securities		—		—		10,464		280		10,464		280
Other securities		4,709		24		284		46		4,993		70
MBS and CMOs		72,766		831		188,120		21,674		260,886		22,505
Total AFS securities	$	79,306	$	863	$	247,631	$	26,056	$	326,937	$	26,919

	June 30, 2023
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
(dollars in thousands)	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
Obligations of state and political subdivisions	$	11,574	$	184	$	26,763	$	2,553	$	38,337	$	2,737
Corporate obligations		14,709		1,074		13,821		2,107		28,530		3,181
Asset backed securities		22,628		263		698		282		23,326		545
Other securities		1,970		11		350		45		2,320		56
MBS and CMOs		87,354		1,525		145,673		21,512		233,027		23,037
Total AFS securities	$	138,235	$	3,057	$	187,305	$	26,499	$	325,540	$	29,556

Obligations of state and political subdivisions. The unrealized losses on the Company’s investments in obligations of state and political subdivisions include five individual securities which have been in an unrealized loss position for less than 12 months and 45 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Corporate and other Obligations. The unrealized losses on the Company’s investments in corporate obligations include one security which has been in an unrealized loss position for less than 12 months and 19 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Asset-Backed securities. The unrealized losses on the Company’s investments in asset-backed securities include no individual securities which have been in an unrealized loss position for less than 12 months and six individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized loss was caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

MBS and CMOs. The unrealized losses on the Company’s investments in MBS and CMOs include 21 individual securities which have been in an unrealized loss position for less than 12 months, and 113 individual securities which have been in an unrealized loss position for 12 months or more. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

The Company does not believe that any individual unrealized loss as of March 31, 2024, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

Credit losses recognized on investments.  There were no credit losses recognized in income and other losses or recorded in other comprehensive loss for the three- and nine- month periods ended March 31, 2024 and 2023.