Securities

6 Months Ended

Dec. 31, 2020

Investments, Debt and Equity Securities [Abstract]

Note 5: Securities

The amortized cost and approximate fair value of securities, 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:
December 31, 2020:
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)	$	7,525	$	645	$	—		$	8,170
Mortgage-backed:
GSE residential		148,886		5,908		(273	)		154,521
Small Business Administration		3,471		138		—			3,609
State and political subdivisions		1,251		—		—			1,251

	$	161,133	$	6,691	$	(273	)	$	167,551

June 30, 2020:
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)	$	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 with a book value of approximately $148,886,000 and a market value of approximately $154,521,000 at December 31, 2020, the Company held no securities at December 31, 2020 with a book value that exceeded 10% of total equity.

All mortgage-backed securities at December 31, 2020 and June 30, 2020 were issued by GSEs.

The amortized cost and fair value of

available-for-sale

securities at December 31, 2020, 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.


	Available-for-sale Securities
	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		6,034		6,545
Five to ten years		4,246		4,435
After ten years		1,967		2,050

		12,247		13,030
Mortgage-backed securities		148,886		154,521

Totals	$	161,133	$	167,551

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $78,898,000 and $66,186,000 as of December 31, 2020 and June 30, 2020, respectively.

The carrying value of securities sold under agreement to repurchase amounted to $4.6 million at December 31, 2020 and $3.7 million at June 30, 2020. At December 31, 2020, approximately $2.8 million of our repurchase agreements had an overnight maturity, while the remaining $1.8 million in repurchase agreements had a term of 30 to 90 days. All of our repurchase agreements were secured by U.S. Government, federal agency and GSE securities. The right of offset for a repurchase agreement resembles a secured borrowing, whereby the collateral pledged by the Company would be used to settle the fair value of the repurchase agreement should the Company be in default. The collateral is held by the Company in a segregated custodial account. In the event the collateral fair value falls below stipulated levels, the Company will pledge additional securities. The Company closely monitors collateral levels to ensure adequate levels are maintained.

Gross gains of $204,000 and $21,000 and gross losses of $0 and $28,000 resulting from sales of

available-for-sale

securities were realized for the six months ended December 31, 2020, and 2019, respectively. Tax provision applicable to these net realized gains was $58,000 and $(2,000), 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 December 31, 2020 and June 30, 2020, was $24,150,000 and $24,574,000, respectively, which is approximately 14% and 15% of the Company’s

available-for-sale

investment portfolio. These declines in fair value at December 31, 2020 and June 30, 2020, resulted from increases 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 December 31, 2020 and June 30, 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
December 31, 2020:
Mortgage-backed:
GSE residential		21,456		(256	)		2,421		(17	)		23,877		(273	)

Total temporarily impaired securities	$	21,456	$	(256	)	$	2,421	$	(17	)	$	23,877	$	(273	)

June 30, 2020:
Mortgage-backed:
GSE residential	$	22,162	$	(116	)	$	2,351	$	(106	)	$	24,513	$	(222	)
State and political subdivisions		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 U.S. Government and federal agency and Government sponsored enterprises at December 31, 2020 and June 30, 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 December 31, 2020 and June 30, 2020.