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Securities

12 Months Ended

Jun. 30, 2021

Investments, Debt and Equity Securities [Abstract]

Note 2: Securities

The amortized cost and approximate fair values, together with gross unrealized gains and losses, of securities are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale Securities:
June 30, 2021:
U.S. Treasury	$	990	$	6	$	—		$	996
U.S. Government and federal agency and Government sponsored enterprises (GSEs)		7,522		517		—			8,039
Mortgage-backed:
GSE residential		167,711		4,011		(1,307	)		170,415
Small Business Administration		9,115		105		(30	)		9,190
State and political subdivisions		1,251		—		—			1,251

	$	186,589	$	4,639	$	(1,337	)	$	189,891

June 30, 2020:
U.S. Government and federal agency and Government sponsored enterprises (GSEs)	$	7,528	$	708	$	—		$	8,236
Mortgage-backed:
GSE residential		143,033		6,044		(222	)		148,855
Small Business Administration		3,578		62		—			3,640
State and political subdivisions		1,449		215		(1	)		1,663

	$	155,588	$	7,029	$	(223	)	$	162,394

With the exception of

Mortgage-backed-GSE

residential securities and Small Business Administration securities with a book value of $167,711,000 and $9,115,000, respectively, and a market value of $170,415,000 and $9,190,000, respectively, at June 30, 2021, the Company held no securities at June 30, 2021 with a book value that exceeded 10% of total equity.

All mortgage-backed securities at June 30, 2021 and 2020 were issued by government sponsored enterprises.

The amortized cost and fair value of

available-for-sale

securities at June 30, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		6,030		6,447
Five to ten years		4,963		5,103
After ten years		7,885		7,926

		18,878		19,476
Mortgage-backed securities		167,711		170,415

Totals	$	186,589	$	189,891

The carrying value of securities pledged as collateral, to secure public deposits and for other purposes, was $96,429,000 at June 30, 2021 and $66,186,000 at June 30, 2020.

Gross gains of $327,000 and $295,000 and gross losses of $7,000 and $28,000 resulting from sales of

available-for-sale

securities were realized for 2021 and 2020, respectively. The tax provision applicable to these net realized gains amounted to approximately $92,000 and $76,000 for 2021 and 2020, respectively.

Certain investments in debt securities are reported in the consolidated financial statements at an amount less than their historical cost. Total fair value of these investments at June 30, 2021 and 2020, was $85,118,000 and $24,574,000, respectively, which is approximately 45% and 16% of the Company’s

available-for-sale

investment portfolio. These declines in fair value at June 30, 2021 and 2020, resulted from changes in market interest rates and are considered temporary.

The following table shows the Company’s gross unrealized investment losses and the fair value of the Company’s investments with unrealized losses that are not deemed to be other-than-temporarily impaired, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2021 and 2020:


	Less Than 12 Months					12 Months or More					Total
Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
June 30, 2021:
Mortgage-backed:
GSE residential	$	75,002		(1,259	)		4,160		(48	)		79,162		(1,307	)
Small Business Administration		5,956		(30	)		—		—			5,956		(30	)

Total temporarily impaired securities	$	80,958	$	(1,289	)	$	4,160	$	(48	)	$	85,118	$	(1,337	)

June 30, 2020:
Mortgage-backed:
GSE residential	$	22,162	$	(116	)	$	2,351	$	(106	)	$	24,513	$	(222	)
Small Business Administration		61		(1	)		—		—			61		(1	)

Total temporarily impaired securities	$	22,223	$	(117	)	$	2,351	$	(106	)	$	24,574	$	(223	)

The unrealized losses on the Company’s investment in residential mortgage-backed securities and Small Business Administration securities at June 30, 2021 and 2020, were mostly the result of a decline in market value that was attributable to changes in interest rates and not credit quality, and the Company does not consider those investments to be other-than-temporarily impaired at June 30, 2021 and 2020.