XML 24 R10.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Note 3: Securities | 6 Months Ended
--- | ---
Dec. 31, 2019
Notes |
Note 3: Securities | Note 3: Securities The amortized cost, gross unrealized gains, gross unrealized losses, and approximate fair value of securities available for sale consisted of the following:
| December 31, 2019
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair
(dollars in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value
Investment and mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government-sponsored enterprises (GSEs) | $ | 3,291 |  | $ | 5 |  | $ | (1) |  | $ | 3,295
State and political subdivisions |  | 41,445 |  |  | 811 |  |  | (18) |  |  | 42,238
Other securities |  | 5,172 |  |  | 78 |  |  | (227) |  |  | 5,023
Mortgage-backed GSE residential |  | 123,769 |  |  | 1,724 |  |  | (206) |  |  | 125,287
Total investments and mortgage-backed securities | $ | 173,677 |  | $ | 2,618 |  | $ | (452) |  | $ | 175,843
| June 30, 2019
|  |  |  |  | Gross |  |  | Gross |  |  | Estimated
|  | Amortized |  |  | Unrealized |  |  | Unrealized |  |  | Fair
(dollars in thousands) |  | Cost |  |  | Gains |  |  | Losses |  |  | Value
Investment and mortgage backed securities: |  |  |  |  |  |  |  |  |  |  |
U.S. government-sponsored enterprises (GSEs) | $ | 7,284 |  | $ | 1 |  | $ | (15) |  | $ | 7,270
State and political subdivisions |  | 42,123 |  |  | 728 |  |  | (68) |  |  | 42,783
Other securities |  | 5,176 |  |  | 75 |  |  | (198) |  |  | 5,053
Mortgage-backed GSE residential |  | 109,297 |  |  | 1,449 |  |  | (317) |  |  | 110,429
Total investments and mortgage-backed securities | $ | 163,880 |  | $ | 2,253 |  | $ | (598) |  | $ | 165,535
The amortized cost and estimated fair value of investment and mortgage-backed securities, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without penalties.
| December 31, 2019
| Amortized | Estimated
(dollars in thousands) | Cost | Fair Value
Within one year | $ 4,801 | $ 4,805
After one year but less than five years | 8,495 | 8,569
After five years but less than ten years | 17,376 | 17,663
After ten years | 19,236 | 19,519
Total investment securities | 49,908 | 50,556
Mortgage-backed securities | 123,769 | 125,287
Total investments and mortgage-backed securities | $ 173,677 | $ 175,843
The carrying value of investment and mortgage-backed securities pledged as collateral to secure public deposits and securities sold under agreements to repurchase amounted to $123.8 million at December 31, 2019 and $143.7 million at June 30, 2019. The securities pledged consist of marketable securities, including $1.6 million and $5.6 million of U.S. Government and Federal Agency Obligations, $36.5 million and $47.3 million of Mortgage-Backed Securities, $51.8 million and $55.7 million of Collateralized Mortgage Obligations, $33.8 million and $34.9 million of State and Political Subdivisions Obligations, and $200,000 and $300,000 of Other Securities at December 31 and June 30, 2019, respectively. The following tables reflect the Company’s investments’ gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31 and June 30, 2019:
| December 31, 2019
| Less than 12 months |  | 12 months or more |  | Total
|  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
| Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government-sponsored enterprises (GSEs) | $ | - |  | $ | - |  | $ | 998 |  | $ | 1 |  | $ | 998 |  | $ | 1
Obligations of state and political subdivisions |  | 2,293 |  |  | 9 |  |  | 2,192 |  |  | 9 |  |  | 4,485 |  |  | 18
Other securities |  | - |  |  | - |  |  | 949 |  |  | 227 |  |  | 949 |  |  | 227
Mortgage-backed securities |  | 33,472 |  |  | 141 |  |  | 10,263 |  |  | 65 |  |  | 43,735 |  |  | 206
Total investments and mortgage- backed securities | $ | 35,765 |  | $ | 150 |  | $ | 14,402 |  | $ | 302 |  | $ | 50,167 |  | $ | 452
| June 30, 2019
| Less than 12 months |  | 12 months or more |  | Total
|  |  | Unrealized |  |  |  | Unrealized |  |  |  | Unrealized
| Fair Value |  | Losses |  | Fair Value |  | Losses |  | Fair Value |  | Losses
(dollars in thousands) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
U.S. government-sponsored enterprises (GSEs) | $ | - |  | $ | - |  | $ | $6,969 |  | $ | 15 |  | $ | 6,969 |  | $ | 15
Obligations of state and political subdivisions |  | - |  |  | - |  |  | 8,531 |  |  | 68 |  |  | 8,531 |  |  | 68
Other securities |  | - |  |  | - |  |  | 985 |  |  | 198 |  |  | 985 |  |  | 198
Mortgage-backed securities |  | 1,175 |  |  | 1 |  |  | 34,148 |  |  | 316 |  |  | 35,323 |  |  | 317
Total investments and mortgage- backed securities | $ | 1,175 |  | $ | 1 |  | $ | 50,633 |  | $ | 597 |  | $ | 51,808 |  | $ | 598
Other securities. At December 31, 2019, there were two pooled trust preferred securities with an estimated fair value of $752,000 and unrealized losses of $222,000 in a continuous unrealized loss position for twelve months or more. These unrealized losses were primarily due to the long-term nature of the pooled trust preferred securities and a reduced demand for these securities, and concerns regarding the financial institutions that issued the underlying trust preferred securities. The December 31, 2019, cash flow analysis for these two securities indicated it is probable the Company will receive all contracted principal and related interest projected. The cash flow analysis used in making this determination was based on anticipated default, recovery, and prepayment rates, and the resulting cash flows were discounted based on the yield spread anticipated at the time the securities were purchased. Other inputs include the actual collateral attributes, which include credit ratings and other performance indicators of the underlying financial institutions, including profitability, capital ratios, and asset quality. Assumptions for these two securities included prepayments averaging 1.6 percent, annually, annual defaults averaging 50 basis points, and a recovery rate averaging 10 percent of gross defaults, lagged two years. One of these two securities has continued to receive cash interest payments in full since purchase; the other security received principal-in-kind (PIK), in lieu of cash interest, for a period of time following the recession and financial crisis which began in 2008, but resumed cash interest payments during fiscal 2014. The Company’s cash flow analysis indicates that cash interest payments are expected to continue for both securities. Because the Company does not intend to sell these securities and it is not more-likely-than-not that the Company will be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company does not consider these investments to be other-than-temporarily impaired at December 31, 2019. The Company does not believe any other individual unrealized loss as of December 31, 2019, represents other-than-temporary impairment (OTTI). However, the Company could be required to recognize OTTI losses in future periods with respect to its available for sale investment securities portfolio. The amount and timing of any required OTTI will depend on the decline in the underlying cash flows of the securities. Should the impairment of any of these securities become other-than-temporary, the cost basis of the investment will be reduced and the resulting loss recognized in the period the OTTI is identified. Credit losses recognized on investments. During fiscal 2009, the Company adopted ASC 820, formerly FASB Staff Position 157-4, “Determining Fair Value When the Volume and Level of Activity for the Asset or Liability Have Significantly Decreased and Identifying Transactions That Are Not Orderly.” There were no credit losses recognized in income and other losses or recorded in other comprehensive income for the three- and six- month periods ended December 31, 2019 and 2018.

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

X
- Definition Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets. + References No definition available. + Details
Name: | us-gaap_MarketableSecuritiesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration