Securities

9 Months Ended

Mar. 31, 2022

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 on securities, are as follows:


	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available-for-sale securities:
March 31, 2022:
U.S. Treasury	$	8,804	$	1	$	(117	)	$	8,688
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)		9,489		48		(142	)		9,395
Mortgage-backed:
GSE residential		196,180		296		(11,725	)		184,751
Small Business Administration		15,542		—		(847	)		14,695
State and political subdivisions		1,110		—		—			1,110

	$	231,125	$	345	$	(12,831	)	$	218,639

June 30, 2021:
U.S. Treasury	$	990	$	6	$	—		$	996
U.S. Government and federal agency and Government sponsored enterprises (GSE’s)		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 U.S. Treasury securities, U.S. Government and federal agency securities, mortgage-backed GSE residential securities and Small Business Administration securities with a book value of approximately $8,804,000, $9,489,000, $196,180,000 and $15,542,000, and a market value of approximately $8,688,000, $9,395,000, $184,751,000 and $14,695,000 at March 31, 2022, the Company held no securities at March 31, 2022 with a book value that exceeded 10% of total equity.

All mortgage-backed securities at March 31, 2022 and June 30, 2021 were issued by GSEs.

The amortized cost and fair value of

available-for-sale

securities at March 31, 2022, 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	$	998	$	998
One to five years		15,105		15,053
Five to ten years		8,113		7,764
After ten years		10,729		10,073

		34,945		33,888
Mortgage-backed securities		196,180		184,751

Totals	$	231,125	$	218,639

The carrying value of securities pledged as collateral to secure public deposits and for other purposes was $116,110,000 and $96,429,000 as of March 31, 2022 and June 30, 2021, respectively.

The carrying value of securities sold under agreement to repurchase amounted to $7.3 million at March 31, 2022 and $6.2 million at June 30, 2021. At March 31, 2022, all $7.3 million of our repurchase agreements had an overnight maturity and 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 $0 and $327,000 and gross losses of $0 and $7,000, resulting from sales of

available-for-sale

securities were realized for the nine month period ended March 31, 2022, and 2021, respectively. The tax provision applicable to these net realized gains amounted to approximately $0 and $91,000 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 March 31, 2022 and June 30, 2021 was $179,350,000 and $85,118,000, respectively, which is approximately 82% and 45% of the Company’s

available-for-sale

investment portfolio. These declines in fair value at March 31, 2022 and June 30, 2021, resulted from increases in market interest rates and are considered temporary.

The following table shows the gross unrealized losses of the Company’s securities and the fair value of the Company’s securities 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 March 31, 2022 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
March 31, 2022:
U.S. Treasury	$	7,694	$	(117	)	$	—	$	—		$	7,694	$	(117	)
U.S. Government and federal agency		3,324		(142	)		—		—			3,324		(142	)
Mortgage-backed:
GSE residential		113,324		(7,587	)		40,313		(4,138	)		153,637		(11,725	)
Small Business Administration		12,529		(623	)		2,166		(224	)		14,695		(847	)

Total temporarily impaired securities	$	136,871	$	(8,469	)	$	42,479	$	(4,362	)	$	179,350	$	(12,831	)

June 30, 2021:
Mortgage-backed:
GSE residential	$	75,002		(1,259	)		4,160		(48	)		79,162		(1,307	)
State and political subdivisions		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 U.S. Treasury, U.S. Government and federal agency, Mortgage-backed Government sponsored enterprises and Small Business Administration securities at March 31, 2022 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 March 31, 2022 and June 30, 2021.