Securities

3 Months Ended

Sep. 30, 2021

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:
September 30, 2021:
U.S. Treasury	$	991	$	4	$	—		$	995
U.S. Government and federal agency		7,519		472		—			7,991
Mortgage-backed:
GSE residential		177,066		3,549		(1,853	)		178,762
Small Business Administration		10,872		85		(147	)		10,810
State and political subdivisions		1,251		—		—			1,251

	$	197,699	$	4,110	$	(2,000	)	$	199,809

June 30, 2021:
U.S. Treasury	$	990	$	6	$	—		$	996
U.S. Government and federal agency		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

With the exception of Mortgage-backed GSE residential securities and Small Business Administration securities with a book value of approximately $177,066,000 and $10,872,000, respectively, and a market value of approximately $178,762,000 and $10,810,000, respectively, at September 30, 2021, the Company did not hold securities of any one issuer at September 30, 2021 with a book value that exceeded 10% of the Company’s total equity.

All mortgage-backed securities at September 30, 2021, and June 30, 2021 were issued by GSEs.

The amortized cost and fair value of

available-for-sale

securities at September 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.


	Available-for-sale Securities

	Amortized Cost		Fair Value
Within one year	$	—	$	—
One to five years		6,027		6,407
Five to ten years		6,765		6,883
After ten years		7,841		7,757

		20,633		21,047
Mortgage-backed securities		177,066		178,762

Totals	$	197,699	$	199,809

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $96,131,000 and $96,429,000 as of September 30, 2021 and June 30, 2021, respectively.

The carrying value of securities sold under agreement to repurchase amounted to $6.7 million at September 30, 2021 and $6.2 million at June 30, 2021. At September 30, 2021, all $6.7 million of our repurchase agreements had an overnight maturity, and all 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 $0 and $204,000 and gross losses of $0 and $0 resulting from sales of

available-for-sale

securities were realized for the three months ended September 30, 2021, and 2020, respectively. Tax provision applicable to these net realized gains was $0 for the three months ended September 30, 2021, and $58,000 for the three months ended September 30, 2020.

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 September 30, 2021 and June 30, 2021, was $90,661,000 and $85,118,000, respectively, which is approximately 45% and 45% of the Company’s

available-for-sale

investment portfolio. These declines in fair value at September 30, 2021 and June 30, 2021, 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 September 30, 2021 and June 30, 2021:


	Less Than 12 Months					12 Months or More					Total

Description of Securities	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
September 30, 2021:
Mortgage-backed:
GSE residential	$	75,522	$	(1,604	)	$	9,343	$	(249	)	$	84,865	$	(1,853	)
Small Business Administration		5,796		(147	)		—		—			5,796		(147	)

Total temporarily impaired securities	$	81,318	$	(1,751	)	$	9,343	$	(249	)	$	90,661	$	(2,000	)

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	)

The unrealized losses on the Company’s investment in residential mortgage-backed securities and state and political subdivisions at September 30, 2021 and June 30, 2021, 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 September 30, 2021 and June 30, 2021.