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SECURITIES | 3 Months Ended
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Sep. 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:
| September 30, 2023
| Trading |  | Available-for-sale |  |
(Dollars in thousands) | Fair Value |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  |  |  |  |  |  |  |
Mortgage-backed securities (MBS): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agencies 1 | $ | — |  |  | $ | 31,277 |  |  | $ | 1 |  |  | $ | (3,654) |  |  | $ | 27,624 |  |  |  |  |  |  |  |  |
Non-agency 2 | — |  |  | 210,027 |  |  | 723 |  |  | (4,674) |  |  | 206,076 |  |  |  |  |  |  |  |  |
Total mortgage-backed securities | — |  |  | 241,304 |  |  | 724 |  |  | (8,328) |  |  | 233,700 |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | 640 |  |  | 3,689 |  |  | — |  |  | (663) |  |  | 3,026 |  |  |  |  |  |  |  |  |
Total Non-MBS | 640 |  |  | 3,689 |  |  | — |  |  | (663) |  |  | 3,026 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 640 |  |  | $ | 244,993 |  |  | $ | 724 |  |  | $ | (8,991) |  |  | $ | 236,726 |  |  |  |  |  |  |  |  |
| June 30, 2023
| Trading |  | Available-for-sale |  |
(Dollars in thousands) | Fair Value |  | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value |  |  |  |  |  |  |  |
Mortgage-backed securities (MBS): |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. 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 |  |  |  |  |  |  |  |  |
Total Non-MBS | 758 |  |  | 3,656 |  |  | — |  |  | (258) |  |  | 3,398 |  |  |  |  |  |  |  |  |
Total debt securities | $ | 758 |  |  | $ | 240,951 |  |  | $ | 711 |  |  | $ | (9,312) |  |  | $ | 232,350 |  |  |  |  |  |  |  |  |
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 Alt-A or pay-option ARM mortgages. No credit losses were recognized on available-for-sale securities in the three months ended September 30, 2023 and September 30, 2022. Based on the underlying government guarantees and other credit protection supporting our securities, no allowance for credit losses for available-for-sale debt securities was recorded at September 30, 2023 and June 30, 2023. 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, including 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 face amounts of available-for-sale debt securities pledged to secure borrowings at both September 30, 2023 and June 30, 2023 were $0.9 million. During the three months ended September 30, 2023 and 2022, the Company sold no available-for-sale securities. Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:
| September 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. agencies | $ | 7,321 |  |  | $ | (174) |  |  | $ | 20,134 |  |  | $ | (3,480) |  |  | $ | 27,455 |  |  | $ | (3,654) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-agency | 72,567 |  |  | (53) |  |  | 131,874 |  |  | (4,621) |  |  | 204,441 |  |  | (4,674) |  |  |  |  |  |  |  |  |  |  |  |  |
Total MBS | 79,888 |  |  | (227) |  |  | 152,008 |  |  | (8,101) |  |  | 231,896 |  |  | (8,328) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-MBS: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | — |  |  | — |  |  | 3,026 |  |  | (663) |  |  | 3,026 |  |  | (663) |  |  |  |  |  |  |  |  |  |  |  |  |
Total Non-MBS | — |  |  | — |  |  | 3,026 |  |  | (663) |  |  | 3,026 |  |  | (663) |  |  |  |  |  |  |  |  |  |  |  |  |
Total debt securities | $ | 79,888 |  |  | $ | (227) |  |  | $ | 155,034 |  |  | $ | (8,764) |  |  | $ | 234,922 |  |  | $ | (8,991) |  |  |  |  |  |  |  |  |  |  |  |  |
| 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. 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 | 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) |  |  |  |  |  |  |  |  |  |  |  |  |
The components of the Company’s accumulated other comprehensive income (loss) are as follows:
(Dollars in thousands) | September 30, 2023 |  | June 30, 2023
Available-for-sale debt securities—net unrealized gains (losses) | $ | (8,266) |  |  | $ | (8,601) |
Available-for-sale debt securities—non-credit related | (845) |  |  | (845) |
Subtotal | (9,111) |  |  | (9,446) |
Tax benefit (expense) | 2,723 |  |  | 2,836 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ | (6,388) |  |  | $ | (6,610) |
The following table sets forth the expected maturity distribution of our mortgage-backed securities, which is based on assumed prepayment rates, and the contractual maturity distribution of our non-MBS securities:
| At September 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 | $ | 31,277 |  |  | $ | 6,444 |  |  | $ | 14,821 |  |  | $ | 7,460 |  |  | $ | 2,552 |
Non-Agency 2 | $ | 210,027 |  |  | $ | 127,741 |  |  | $ | 79,585 |  |  | $ | 1,640 |  |  | $ | 1,061 |
Total MBS | $ | 241,304 |  |  | $ | 134,185 |  |  | $ | 94,406 |  |  | $ | 9,100 |  |  | $ | 3,613 |
Non-MBS: |  |  |  |  |  |  |  |  |
Municipal | $ | 3,689 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,689 |
Total Non-MBS | $ | 3,689 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,689 |
Available-for-sale—Amortized Cost | $ | 244,993 |  |  | $ | 134,185 |  |  | $ | 94,406 |  |  | $ | 9,100 |  |  | $ | 7,302 |
Available-for-sale—Fair value | $ | 236,726 |  |  | $ | 130,977 |  |  | $ | 91,040 |  |  | $ | 8,203 |  |  | $ | 6,506 |
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.

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