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AVAILABLE-FOR-SALE SECURITIES
 6 Months Ended
Dec. 31, 2023
Investments, Debt and Equity Securities [Abstract]  
AVAILABLE-FOR-SALE SECURITIES AVAILABLE-FOR-SALE SECURITIES
The amortized cost and fair value of available-for-sale securities were:
December 31, 2023
(Dollars in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
U.S. agencies1
$31,048 $238 $(2,622)$28,664 
Non-agency2
209,783 911 (2,986)207,708 
Total mortgage-backed securities240,831 1,149 (5,608)236,372 
Non-MBS:
Municipal3,721 — (281)3,440 
Total Non-MBS3,721 — (281)3,440 
Total available-for-sale securities
$244,552 $1,149 $(5,889)$239,812 
June 30, 2023
(Dollars in thousands)Amortized
Cost		Unrealized
Gains		Unrealized
Losses		Fair
Value
Mortgage-backed securities (MBS):
U.S. agencies1
$27,024 $— $(3,077)$23,947 
Non-agency2
210,271 711 (5,977)205,005 
Total mortgage-backed securities237,295 711 (9,054)228,952 
Non-MBS:
Municipal3,656 — (258)3,398 
Total Non-MBS3,656 — (258)3,398 
Total available-for-sale securities
$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 and six months ended December 31, 2023 and December 31, 2022. Based on the underlying government guarantees and other credit protection supporting our securities, no allowance for credit losses for available-for-sale securities was recorded at December 31, 2023 and June 30, 2023. The Company has no allowance for the available-for-sale 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 securities pledged to secure borrowings at December 31, 2023 and June 30, 2023 were $0.8 million and $0.9 million, respectively.
During the three and six months ended December 31, 2023 and 2022, the Company sold a $4.8 million available-for-sale security with no realized gain or loss.
Securities with unrealized losses, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were:
December 31, 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$25 $— $20,762 $(2,622)$20,787 $(2,622)
Non-agency42,324 (71)133,670 (2,915)175,994 (2,986)
Total MBS42,349 (71)154,432 (5,537)196,781 (5,608)
Non-MBS:
Municipal
— — 3,440 (281)3,440 (281)
Total Non-MBS— — 3,440 (281)3,440 (281)
Total available-for-sale securities
$42,349 $(71)$157,872 $(5,818)$200,221 $(5,889)
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-agency107,982 (1,808)95,385 (4,169)203,367 (5,977)
Total MBS111,164 (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 available-for-sale 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)December 31,
2023		June 30,
2023
Available-for-sale securities—net unrealized gains (losses)
$(4,740)$(8,601)
Available-for-sale securities—non-credit related
(845)(845)
Subtotal(5,585)(9,446)
Tax benefit (expense)1,666 2,836 
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss)$(3,919)$(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 maturity distribution of our non-MBS, which is based on the contractual maturity:
As of December 31, 2023
(Dollars in thousands)Total AmountDue Within One YearDue after One but within Five YearsDue after Five but within Ten YearsDue After Ten Years
MBS:
Agency1
$31,048 $6,907 $14,543 $7,222 $2,376 
Non-Agency2
$209,783 $163,929 $43,425 $1,534 $895 
Total MBS$240,831 $170,836 $57,968 $8,756 $3,271 
Non-MBS:
Municipal$3,721 $— $— $— $3,721 
Total Non-MBS$3,721 $— $— $— $3,721 
Available-for-sale—Amortized cost
$244,552 $170,836 $57,968 $8,756 $6,992 
Available-for-sale—Fair value$239,812 $168,400 $56,864 $8,181 $6,367 
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.