XML 25 R12.htm IDEA: XBRL DOCUMENT
v3.24.1.u1

AVAILABLE-FOR-SALE SECURITIES | 9 Months Ended
--- | ---
Mar. 31, 2024
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:
| March 31, 2024
(Dollars in thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Mortgage-backed securities (MBS): |  |  |  |  |  |  |
Agency 1 | $ | 30,121 |  |  | $ | 122 |  |  | $ | (2,762) |  |  | $ | 27,481 |
Non-agency 2 | 177,236 |  |  | 950 |  |  | (1,507) |  |  | 176,679 |
Total mortgage-backed securities | 207,357 |  |  | 1,072 |  |  | (4,269) |  |  | 204,160 |
Municipal | 3,754 |  |  | — |  |  | (332) |  |  | 3,422 |
Total available-for-sale securities | $ | 211,111 |  |  | $ | 1,072 |  |  | $ | (4,601) |  |  | $ | 207,582 |
| June 30, 2023
(Dollars in thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Mortgage-backed securities (MBS): |  |  |  |  |  |  |
Agency 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 |
Municipal | 3,656 |  |  | — |  |  | (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 nine months ended March 31, 2024 and March 31, 2023. Based on the underlying government guarantees and other credit protection supporting the Company’s securities, no allowance for credit losses for available-for-sale securities was recorded at March 31, 2024 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 March 31, 2024 and June 30, 2023 were $0.8 million and $0.9 million, respectively.
During the nine months ended March 31, 2024, the Company sold a $4.8 million available-for-sale security with no realized gain or loss. There were no sales of available-for sale securities during the three months ended March 31, 2024 and 2023, and during the nine months ended March 31, 2023.
Securities in an unrealized loss position based on the length of time the individual securities have been in a continuous unrealized loss position were:
| March 31, 2024
| 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | $ | 2,650 |  |  | $ | (26) |  |  | $ | 19,725 |  |  | $ | (2,736) |  |  | $ | 22,375 |  |  | $ | (2,762) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-agency | 10,407 |  |  | (27) |  |  | 133,506 |  |  | (1,480) |  |  | 143,913 |  |  | (1,507) |  |  |  |  |  |  |  |  |  |  |  |  |
Total MBS | 13,057 |  |  | (53) |  |  | 153,231 |  |  | (4,216) |  |  | 166,288 |  |  | (4,269) |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | — |  |  | — |  |  | 3,422 |  |  | (332) |  |  | 3,422 |  |  | (332) |  |  |  |  |  |  |  |  |  |  |  |  |
Total available-for-sale securities | $ | 13,057 |  |  | $ | (53) |  |  | $ | 156,653 |  |  | $ | (4,548) |  |  | $ | 169,710 |  |  | $ | (4,601) |  |  |  |  |  |  |  |  |  |  |  |  |
| 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Agency | $ | 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) |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | — |  |  | — |  |  | 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) | March 31, 2024 |  | June 30, 2023
Available-for-sale securities—net unrealized gains (losses) | $ | (3,529) |  |  | $ | (8,601) |
Available-for-sale securities—non-credit related | (845) |  |  | (845) |
Subtotal | (4,374) |  |  | (9,446) |
Tax benefit (expense) | 1,310 |  |  | 2,836 |
Net unrealized gain (loss) on investment securities in accumulated other comprehensive income (loss) | $ | (3,064) |  |  | $ | (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 municipal securities, which is based on the contractual maturity:
| As of March 31, 2024
(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 | $ | 30,121 |  |  | $ | 7,085 |  |  | $ | 13,840 |  |  | $ | 6,950 |  |  | $ | 2,246 |
Non-Agency | $ | 177,236 |  |  | $ | 153,214 |  |  | $ | 21,652 |  |  | $ | 1,322 |  |  | $ | 1,048 |
Total MBS | $ | 207,357 |  |  | $ | 160,299 |  |  | $ | 35,492 |  |  | $ | 8,272 |  |  | $ | 3,294 |
Municipal | $ | 3,754 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,754 |
Available-for-sale—Amortized cost | $ | 211,111 |  |  | $ | 160,299 |  |  | $ | 35,492 |  |  | $ | 8,272 |  |  | $ | 7,048 |
Available-for-sale—Fair value | $ | 207,582 |  |  | $ | 158,860 |  |  | $ | 34,292 |  |  | $ | 7,794 |  |  | $ | 6,636 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//320/tableOfContent Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 320 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 10 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org//1943274/2147481800/320-10-50-10 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (b) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Topic 820 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 6B -Subparagraph (c) -Publisher FASB -URI https://asc.fasb.org//1943274/2147482106/820-10-50-6B Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) -Publisher SEC Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 946 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//946-320/tableOfContent Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 940 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//940-320/tableOfContent Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 942 -SubTopic 320 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org//942-320/tableOfContent + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration