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SECURITIES | 12 Months Ended
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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
| Trading |  | Available-for-sale |  |
(Dollars in thousands) | Fair Value |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  |  |  |  |  |  |  |
Mortgage-backed securities (MBS): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agencies 1 | $ | — |  |  | $ | 27,024 |  |  | $ | — |  |  | $ | (3,077) |  |  | $ | 23,947 |  |  |  |  |  |  |  |  |
Non-agency 2 | — |  |  | 210,271 |  |  | 711 |  |  | (5,977) |  |  | 205,005 |  |  |  |  |  |  |  |  |
Total mortgage-backed securities | — |  |  | 237,295 |  |  | 711 |  |  | (9,054) |  |  | 228,952 |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | 758 |  |  | 3,656 |  |  | — |  |  | (258) |  |  | 3,398 |  |  |  |  |  |  |  |  |
Asset-backed securities and structured notes | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  |  |  |  |  |  |  |
Total Non-MBS | 758 |  |  | 3,656 |  |  | — |  |  | (258) |  |  | 3,398 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 758 |  |  | $ | 240,951 |  |  | $ | 711 |  |  | $ | (9,312) |  |  | $ | 232,350 |  |  |  |  |  |  |  |  |
| June 30, 2022
| Trading |  | Available-for-sale |  |
(Dollars in thousands) | Fair Value |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  |  |  |  |  |  |  |
Mortgage-backed securities (MBS): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agencies 1 | $ | — |  |  | $ | 27,722 |  |  | $ | 9 |  |  | $ | (2,406) |  |  | $ | 25,325 |  |  |  |  |  |  |  |  |
Non-agency 2 | — |  |  | 187,616 |  |  | 1,832 |  |  | (2,634) |  |  | 186,814 |  |  |  |  |  |  |  |  |
Total mortgage-backed securities | — |  |  | 215,338 |  |  | 1,841 |  |  | (5,040) |  |  | 212,139 |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | 1,758 |  |  | 3,529 |  |  | — |  |  | (281) |  |  | 3,248 |  |  |  |  |  |  |  |  |
Asset-backed securities and structured notes | — |  |  | 47,000 |  |  | 131 |  |  | — |  |  | 47,131 |  |  |  |  |  |  |  |  |
Total Non-MBS | 1,758 |  |  | 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 Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  |  |  |  |  |  |  |  |  |  |  |
MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agencies | $ | 3,182 |  |  | $ | (16) |  |  | $ | 20,642 |  |  | $ | (3,061) |  |  | $ | 23,824 |  |  | $ | (3,077) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-agency | 107,982 |  |  | (1,808) |  |  | 95,385 |  |  | (4,169) |  |  | 203,367 |  |  | (5,977) |  |  |  |  |  |  |  |  |  |  |  |  |
Total MBS securities | 111,164 |  |  | (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 Losses |  | Fair Value |  | Gross Unrealized Losses |  | Fair Value |  | Gross Unrealized Losses |  |  |  |  |  |  |  |  |  |  |  |
MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agencies | $ | 16,446 |  |  | $ | (1,338) |  |  | $ | 8,097 |  |  | $ | (1,068) |  |  | $ | 24,543 |  |  | $ | (2,406) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-agency | 92,796 |  |  | (2,204) |  |  | 4,751 |  |  | (430) |  |  | 97,547 |  |  | (2,634) |  |  |  |  |  |  |  |  |  |  |  |  |
Total MBS securities | 109,242 |  |  | (3,542) |  |  | 12,848 |  |  | (1,498) |  |  | 122,090 |  |  | (5,040) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | 3,248 |  |  | (281) |  |  | — |  |  | — |  |  | 3,248 |  |  | (281) |  |  |  |  |  |  |  |  |  |  |  |  |
Total Non-MBS | 3,248 |  |  | (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 Amount |  | Due Within One Year |  | Due after One but within Five Years |  | Due after Five but within Ten Years |  | Due After Ten Years
MBS: |  |  |  |  |  |  |  |  |
Agency 1 | $ | 27,024 |  |  | $ | 6,276 |  |  | $ | 13,110 |  |  | $ | 5,522 |  |  | $ | 2,116 |
Non-Agency 2 | $ | 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) | 2023 |  | 2022
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) |

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