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AVAILABLE-FOR-SALE SECURITIES | 3 Months Ended
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Sep. 30, 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:
| September 30, 2024
(Dollars in thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Mortgage-backed securities (MBS): |  |  |  |  |  |  |
Agency 1 | $ | 44,702 |  |  | $ | 359 |  |  | $ | (1,941) |  |  | $ | 43,120 |
Non-agency 2 | 90,258 |  |  | 1,295 |  |  | (244) |  |  | 91,309 |
Total mortgage-backed securities | 134,960 |  |  | 1,654 |  |  | (2,185) |  |  | 134,429 |
Municipal | 3,822 |  |  | — |  |  | (255) |  |  | 3,567 |
Total available-for-sale securities | $ | 138,782 |  |  | $ | 1,654 |  |  | $ | (2,440) |  |  | $ | 137,996 |
| June 30, 2024
(Dollars in thousands) | Amortized Cost |  | Unrealized Gains |  | Unrealized Losses |  | Fair Value
Mortgage-backed securities (MBS): |  |  |  |  |  |  |
Agency 1 | $ | 29,835 |  |  | $ | 83 |  |  | $ | (2,659) |  |  | $ | 27,259 |
Non-agency 2 | 110,658 |  |  | 838 |  |  | (568) |  |  | 110,928 |
Total mortgage-backed securities | 140,493 |  |  | 921 |  |  | (3,227) |  |  | 138,187 |
Municipal | 3,788 |  |  | — |  |  | (364) |  |  | 3,424 |
Total available-for-sale securities | $ | 144,281 |  |  | $ | 921 |  |  | $ | (3,591) |  |  | $ | 141,611 |
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. The Company evaluates available-for-sale securities in an unrealized loss position based on an analysis of a number of factors, including, but not limited to: (1) the credit characteristics of the securities, such as the forecasted cash flows, credit ratings, credit enhancement, and government agency or government sponsored enterprise backing, as applicable, and (2) whether the Company intends to sell or will be required to sell any of the securities before recovering the amortized cost basis. Based on its analysis, the Company determined the unrealized losses on available-for-sale securities are primarily driven by the increase in interest rates since the securities were purchased and, accordingly, no credit losses were recognized on available-for-sale securities in the three months ended September 30, 2024 and September 30, 2023. There was no amount in the allowance for credit losses for available-for-sale securities at September 30, 2024 and June 30, 2024. The face amounts of available-for-sale securities pledged to secure borrowings were $0.8 million as of September 30, 2024 and June 30, 2024.
There were no sales of available-for-sale securities during the three months ended September 30, 2024 and September 30, 2023.
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, 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 | $ | 15,991 |  |  | $ | (8) |  |  | $ | 18,741 |  |  | $ | (1,933) |  |  | $ | 34,732 |  |  | $ | (1,941) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-agency | — |  |  | — |  |  | 58,565 |  |  | (244) |  |  | 58,565 |  |  | (244) |  |  |  |  |  |  |  |  |  |  |  |  |
Total MBS | 15,991 |  |  | (8) |  |  | 77,306 |  |  | (2,177) |  |  | 93,297 |  |  | (2,185) |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | — |  |  | — |  |  | 3,567 |  |  | (255) |  |  | 3,567 |  |  | (255) |  |  |  |  |  |  |  |  |  |  |  |  |
Total available-for-sale securities | $ | 15,991 |  |  | $ | (8) |  |  | $ | 80,873 |  |  | $ | (2,432) |  |  | $ | 96,864 |  |  | $ | (2,440) |  |  |  |  |  |  |  |  |  |  |  |  |
| June 30, 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 | $ | 2,644 |  |  | $ | (31) |  |  | $ | 19,298 |  |  | $ | (2,628) |  |  | $ | 21,942 |  |  | $ | (2,659) |  |  |  |  |  |  |  |  |  |  |  |  |
Non-agency | 15 |  |  | — |  |  | 78,364 |  |  | (568) |  |  | 78,379 |  |  | (568) |  |  |  |  |  |  |  |  |  |  |  |  |
Total MBS | 2,659 |  |  | (31) |  |  | 97,662 |  |  | (3,196) |  |  | 100,321 |  |  | (3,227) |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal | — |  |  | — |  |  | 3,424 |  |  | (364) |  |  | 3,424 |  |  | (364) |  |  |  |  |  |  |  |  |  |  |  |  |
Total available-for-sale securities | $ | 2,659 |  |  | $ | (31) |  |  | $ | 101,086 |  |  | $ | (3,560) |  |  | $ | 103,745 |  |  | $ | (3,591) |  |  |  |  |  |  |  |  |  |  |  |  |
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 September 30, 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 | $ | 44,702 |  |  | $ | 10,367 |  |  | $ | 25,954 |  |  | $ | 6,323 |  |  | $ | 2,058 |
Non-Agency | $ | 90,258 |  |  | $ | 86,452 |  |  | $ | 1,817 |  |  | $ | 1,389 |  |  | $ | 600 |
Total MBS | $ | 134,960 |  |  | $ | 96,819 |  |  | $ | 27,771 |  |  | $ | 7,712 |  |  | $ | 2,658 |
Municipal | $ | 3,822 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 3,822 |
Available-for-sale—Amortized cost | $ | 138,782 |  |  | $ | 96,819 |  |  | $ | 27,771 |  |  | $ | 7,712 |  |  | $ | 6,480 |
Available-for-sale—Fair value | $ | 137,996 |  |  | $ | 96,543 |  |  | $ | 27,421 |  |  | $ | 7,735 |  |  | $ | 6,297 |

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