Debt Securities

3 Months Ended

Sep. 30, 2022

Investments, Debt and Equity Securities [Abstract]

Debt securities available for sale consist of the following at the dates indicated:


	September 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	17,997	$	—	$	(681)	$	17,316
MBS, residential	94,178		—		(2,671)		91,507
Municipal bonds	5,533		1		(114)		5,420
Corporate bonds	49,292		—		(1,794)		47,498

Total	$	167,000	$	1	$	(5,260)	$	161,741


	June 30, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	18,993	$	5	$	(539)	$	18,459
MBS, residential	48,377		3		(1,147)		47,233
Municipal bonds	5,545		31		(18)		5,558
Corporate bonds	57,184		1		(1,457)		55,728

Total	$	130,099	$	40	$	(3,161)	$	126,978

Debt securities available for sale by contractual maturity at September 30, 2022 and June 30, 2022 are shown below. MBS are not included in the maturity categories because the borrowers in the underlying pools may prepay without penalty; therefore, it is unlikely that the securities will pay at their stated maturity schedule.



	September 30, 2022
	Amortized Cost		Estimated Fair Value
Due within one year	$	34,292	$	33,933
Due after one year through five years	33,012		31,271
Due after five years through ten years	5,518		5,030
Due after ten years	—		—
MBS, residential	94,178		91,507
Total	$	167,000	$	161,741



	June 30, 2022
	Amortized Cost		Estimated Fair Value
Due within one year	$	35,350	$	34,956
Due after one year through five years	40,325		39,018
Due after five years through ten years	6,047		5,771
Due after ten years	—		—
MBS, residential	48,377		47,233
Total	$	130,099	$	126,978

The Company had no sales of debt securities available for sale and no gross realized gains or losses were recognized during the three months ended September 30, 2022 and 2021.

Debt securities available for sale with amortized costs totaling $67,877 and $43,187 and market values of $65,439 and $41,876 at September 30, 2022 and June 30, 2022, respectively, were pledged as collateral to secure various public deposits and other borrowings.

The gross unrealized losses and the fair value for debt securities available for sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2022 and June 30, 2022 were as follows:


	September 30, 2022
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	12,544	$	(446)	$	4,765	$	(235)	$	17,309	$	(681)
MBS, residential	84,197		(2,015)		7,281		(656)		91,478		(2,671)
Municipal bonds	4,419		(114)		—		—		4,419		(114)
Corporate bonds	31,983		(809)		14,015		(985)		45,998		(1,794)
Total	$	133,143	$	(3,384)	$	26,061	$	(1,876)	$	159,204	$	(5,260)


	June 30, 2022
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
U.S. government agencies	$	14,461	$	(539)	$	—	$	—	$	14,461	$	(539)
MBS, residential	41,658		(994)		5,269		(153)		46,927		(1,147)
Municipal bonds	1,970		(18)		—		—		1,970		(18)
Corporate bonds	39,454		(730)		14,273		(727)		53,727		(1,457)
Total	$	97,543	$	(2,281)	$	19,542	$	(880)	$	117,085	$	(3,161)

The total number of securities with unrealized losses at September 30, 2022 and June 30, 2022 were 208 and 177, respectively.

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. All debt securities available for sale in an unrealized loss position as of September 30, 2022 continue to perform as scheduled and management does not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of management's evaluation of its intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, management considers its investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. Management does not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that securities will be required to be sold. See "Note 1 – Summary of Significant Accounting Policies" in our 2022 Form 10-K for further discussion.

Management continues to monitor all of its securities with a high degree of scrutiny. There can be no assurance that management will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods.

Management excludes the accrued interest receivable balance from the amortized cost basis in measuring expected credit losses on investment securities and does not record an ACL on accrued interest receivable. As of September 30, 2022, the accrued interest receivable for debt securities available for sale was $600.