Investment Securities

3 Months Ended

Sep. 30, 2024

Investments, Debt and Equity Securities [Abstract]

The Company owned no investment securities available-for-sale at September 30, 2024 or June 30, 2024. The amortized cost and approximate fair value of securities held-to-maturity are as follows at the dates indicated:


	September 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Federal National Mortgage Association	$	93,233	$	4	$	(14,940	)	$	78,297
Federal Home Loan Mortgage Corporation		48,655		25		(7,045	)		41,635
Government National Mortgage Association		262		2		—			264
Subordinated Debt		7,750		—		(1,303	)		6,447
CMO		2,316		—		(140	)		2,176
Foreign Government Bonds		300		—		—			300
Total	$	152,516	$	31	$	(23,428	)	$	129,119


	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(Dollars in thousands)
Federal National Mortgage Association	$	95,338	$	1	$	(16,822	)	$	78,517
Federal Home Loan Mortgage Corporation		50,060		78		(8,252	)		41,886
Government National Mortgage Association		273		—		(3	)		270
Subordinated Debt		7,750		—		(1,488	)		6,262
CMO		2,423		—		(222	)		2,201
Foreign Government Bonds		300		—		—			300
Total	$	156,144	$	79	$	(26,787	)	$	129,436

There were no purchases or sales of available-for sale securities in the three months ended September 30, 2024. During the three months ended September 30, 2023, the Company acquired $20.9 million of available-for-sale securities from the Regal Bancorp acquisition. Following the completion of the Merger, the Company sold $19.2 million of its available-for-sale portfolio, which resulted in a realized gain of $17,000 in the three months ended September 30, 2023. The Company did not purchase or sell any other available-for-sale securities during the three months ended September 30, 2023.

The amortized cost and fair value of securities held-to-maturity by contractual maturity at September 30, 2024 are shown in the following table. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations. Securities are assigned to categories based on contractual maturity except for mortgage-backed securities and CMOs, which are based on the estimated average life of the securities.


	September 30, 2024
	Amortized Cost		Fair Value
	(Dollars in thousands)
Due within 1 year	$	100	$	100
Due after 1 but within 5 years		200		200
Due after 5 but within 10 years		7,750		6,447
Due after 10 years		—		—
Mortgage-backed securities		144,466		122,372
Total	$	152,516	$	129,119

The unrealized losses as of September 30, 2024 and June 30, 2024, categorized by the length of time of continuous loss position, and the fair value of related securities held-to-maturity are as follows:


	September 30, 2024
	Less than 12 Months					More than 12 Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
Federal National Mortgage Association	$	539	$	(49	)	$	77,405	$	(14,891	)	$	77,944	$	(14,940	)
Federal Home Loan Mortgage Corporation		—		—			41,204		(7,045	)		41,204		(7,045	)
Subordinated Debt		—		—			6,447		(1,303	)		6,447		(1,303	)
CMO		—		—			2,175		(140	)		2,175		(140	)
Total	$	539	$	(49	)	$	127,231	$	(23,379	)	$	127,770	$	(23,428	)


	June 30, 2024
	Less than 12 Months				More than 12 Months					Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(Dollars in thousands)
Federal National Mortgage Association	$	—	$	—	$	78,160	$	(16,822	)	$	78,160	$	(16,822	)
Federal Home Loan Mortgage Corporation		—		—		41,838		(8,252	)		41,838		(8,252	)
Government National Mortgage Association		—		—		270		(3	)		270		(3	)
Subordinated Debt		—		—		6,262		(1,488	)		6,262		(1,488	)
CMO		—		—		2,201		(222	)		2,201		(222	)
Total	$	—	$	—	$	128,731	$	(26,787	)	$	128,731	$	(26,787	)

On a quarterly basis, management evaluates whether there is a credit loss associated with any declines in fair value. Management considers the nature of the collateral, default rates, delinquency rates, credit ratings and interest rate changes, among other factors. However, the Company has determined that highly rated issues and mortgage-backed securities of U.S. government and government-sponsored agencies have a zero expected credit loss.


	Three Months Ended September 30,
	2024		2023
	(Dollars in thousands)
Net gains (losses) recognized on equity securities	$	2	$	(3	)
Less: Net gains (losses) recognized on equity securities sold/acquired		—		—
Net unrealized gains (losses) recognized on equity securities	$	2	$	(3	)

At September 30, 2024 and June 30, 2024, mortgage-backed securities with a carrying value of approximately $1.7 million and $1.8 million, respectively, were pledged as collateral to secure public funds on deposit. During the three months ended September 30, 2024 and 2023, there were no sales of securities held-to-maturity.