Note 2 - Securities

3 Months Ended

Sep. 30, 2023

Notes to Financial Statements

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

Note 2 – Securities

Debt securities

The following tables summarize the Company’s debt securities as of September 30, 2023 and June 30, 2022:

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
September 30, 2023
Obligations of U.S. Treasury	$	8,949	$	—	$	(470	)	$	8,479
Obligations of U.S. government-sponsored entities and agencies		28,908		—		(4,405	)		24,503
Obligations of state and political subdivisions		87,795		2		(13,077	)		74,720
U.S. Government-sponsored mortgage-backed securities–residential		101,834		—		(19,292	)		82,542
U.S. Government-sponsored mortgage-backed securities– commercial		8,599		—		(2,175	)		6,424
U.S. Government-sponsored collateralized mortgage obligations– residential		55,516		28		(6,262	)		49,282
Other debt securities		17,127		—		(2,047	)		15,080
Total securities available-for-sale	$	308,728	$	30	$	(47,728	)	$	261,030

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
September 30, 2023
Obligations of state and political subdivisions	$	6,866	$	—	$	(743	)	$	6,123

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2023
Obligation of U.S Treasury	$	8,941	$	—	$	(533	)	$	8,408
Obligations of U.S. government-sponsored entities and agencies		29,430		7		(3,745	)		25,692
Obligations of state and political subdivisions		92,891		63		(8,982	)		83,972
U.S. Government-sponsored mortgage-backed securities - residential		104,689		12		(15,066	)		89,635
U.S. Government-sponsored mortgage-backed securities - commercial		8,604		—		(1,809	)		6,795
U.S. Government-sponsored collateralized mortgage obligations – residential		55,800		8		(5,738	)		50,070
Other debt securities		17,175		—		(2,142	)		15,033
Total available-for-sale securities	$	317,530	$	90	$	(38,015	)	$	279,605

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
June 30, 2023
Obligations of state and political subdivisions	$	6,970	$	—	$	(676	)	$	6,294

Proceeds from the sale of available-for-sale securities were as follows:

	Three Months Ended September 30,
	2023		2022
Proceeds from sales	$	4,002	$	2,069
Gross realized gains		—		7
Gross realized losses		79		18

The income tax benefit related to the net realized losses amounted to $16 for the three-month period ended September 30, 2023 and $2 for the three-month period ended September 30, 2022.

The amortized cost and fair values of debt securities as of September 30, 2023, by expected maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Securities not due at a single maturity date, primarily mortgage-backed securities, are shown separately. 

Available-for-Sale	Amortized Cost		Estimated Fair Value
Due in one year or less	$	6,575	$	6,445
Due after one year through five years		26,884		25,275
Due after five years through ten years		52,244		45,075
Due after ten years		57,076		45,987
Total		142,779		122,782
U.S. Government-sponsored mortgage-backed and related securities		165,949		138,248
Total securities available-for-sale	$	308,728	$	261,030
Held-to-Maturity
Due after one year through five years	$	3,092	$	2,954
Due after five years through ten years		533		518
Due after ten years		3,241		2,651
Total securities held-to-maturity	$	6,866	$	6,123

Securities with a carrying value of approximately $137,347 and $137,896 were pledged at September 30, 2023 and June 30, 2023, respectively, to secure public deposits and commitments as required or permitted by law.

The following table summarizes the securities with unrealized losses as of September 30, 2023 and June 30, 2023, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position:

	Less than 12 Months					12 Months or more					Total
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2023
Obligation of U.S. Treasury	$	—	$	—		$	8,479	$	(470	)	$	8,479	$	(470	)
Obligations of U.S. government-sponsored entities and agencies		1,896		(62	)		22,607		(4,343	)		24,503		(4,405	)
Obligations of state and political subdivisions		11,781		(606	)		60,475		(12,471	)		72,256		(13,077	)
U.S. Government-sponsored mortgage-backed securities – residential		3,555		(136	)		78,987		(19,156	)		82,542		(19,292	)
U.S. Government-sponsored mortgage-backed securities – commercial		—		—			6,424		(2,175	)		6,424		(2,175	)
Collateralized mortgage obligations - residential		13,676		(276	)		31,518		(5,986	)		45,194		(6,262	)
Other debt securities		—		—			15,080		(2,047	)		15,080		(2,047	)
Total temporarily impaired	$	30,908	$	(1,080	)	$	223,570	$	(46,648	)	$	254,478	$	(47,728	)

	Less than 12 Months				12 Months or more					Total
Held to Maturity	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
September 30, 2023
Obligations of state and political subdivisions	$	—	$	—	$	6,123	$	(743	)	$	6,123	$	(743	)
Total temporarily impaired	$	—	$	—	$	6,123	$	(743	)	$	6,123	$	(743	)

	Less than 12 Months					12 Months or more					Total
Available-for-sale	Fair Value		Unrealized Loss			Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
June 30, 2023
Obligations of U.S. Treasury	$	—	$	—		$	8,408	$	(533	)	$	8,408	$	(533	)
Obligations of U.S. government-sponsored entities and agencies		1,008		(10	)		23,551		(3,735	)		24,559		(3,745	)
Obligations of state and political subdivisions		16,009		(344	)		62,492		(8,638	)		78,501		(8,982	)
Mortgage-backed securities – residential		3,334		(84	)		85,096		(14,982	)		88,430		(15,066	)
Mortgage-backed securities – commercial		—		—			6,795		(1,809	)		6,795		(1,809	)
Collateralized mortgage obligations - residential		22,039		(638	)		27,023		(5,100	)		49,062		(5,738	)
Other debt securities		—		—			15,033		(2,142	)		15,033		(2,142	)
Total temporarily impaired	$	42,390	$	(1,076	)	$	228,398	$	(36,939	)	$	270,788	$	(38,015	)

	Less than 12 Months				12 Months or more					Total
Held to Maturity	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss			Fair Value		Unrealized Loss
June 30, 2023
Obligations of state and political subdivisions	$	—	$	—	$	6,294	$	(676	)	$	6,294	$	(676	)
Total temporarily impaired	$	—	$	—	$	6,294	$	(676	)	$	6,294	$	(676	)

At September 30, 2023, there were a total of 407 available-for-sale and four held-to-maturity securities in the portfolio with unrealized losses due to an increase in market interest rates when compared to the time of purchase. The unrealized losses have not been recognized into income because the decline in fair value is not attributed to credit quality and management does not intend to sell, and it is not likely that management will be required to sell, the securities prior to their anticipated recovery.

The mortgage-backed securities and collateralized mortgage obligations were primarily issued by Fannie Mae, Freddie Mac and Ginnie Mae, institutions which the government has affirmed its commitment to support. The Company does not own any private label mortgage-backed securities. The municipal bond portfolio consists of tax-exempt and taxable general obligations and revenue bonds to a broad range of counties, towns, school districts, and other essential service providers. As of September 30, 2023, 98.7% of the municipal bonds held in the available-for-sale portfolio had an S&P or Moody’s investment grade rating, and 1.3% were non-rated issues. The municipal bonds in the held-to-maturity portfolio are all non-rated issues to local entities that are also deposit customers. All the municipal bonds are paying as agreed, and there have been no missed payments.

Equity Securities

The Company owned equity securities with an amortized cost of $400 as of September 30, 2023, and June 30, 2023. Changes in the fair value of these securities are included in noninterest income on the consolidated statements of income. The following table presents the net unrealized losses on equity securities recognized in earnings for the three-month periods ended September 30, 2023 and 2022. There were no sales of equity securities during the three-month periods ended September 30, 2023 and 2022.

	Three Months Ended September 30,
	2023		2022
Unrealized loss recognized on equity securities held at the end of the period	$	—	$	(24	)