Note 2 - Securities

6 Months Ended

Dec. 31, 2024

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 amortized cost, fair value, and the corresponding amounts of gross unrealized gains and losses recognized in accumulated other comprehensive loss on the Company’s debt securities available-for-sale and gross unrecognized losses on the Company’s debt securities held-to-maturity as of December 31, 2024, and June 30, 2024:

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2024
Obligations of U.S. Treasury	$	2,981	$	—	$	(102	)	$	2,879
Obligations of U.S. government-sponsored entities and agencies		26,442		—		(3,149	)		23,293
Obligations of state and political subdivisions		81,246		20		(7,860	)		73,406
U.S. Government-sponsored mortgage-backed securities–residential		95,553		—		(14,470	)		81,083
U.S. Government-sponsored mortgage-backed securities– commercial		8,576		—		(1,737	)		6,839
U.S. Government-sponsored collateralized mortgage obligations– residential		69,126		234		(5,422	)		63,938
Other debt securities		19,227		—		(760	)		18,467
Total securities available-for-sale	$	303,151	$	254	$	(33,500	)	$	269,905

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
December 31, 2024
Obligations of state and political subdivisions	$	5,504	$	—	$	(210	)	$	5,294

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2024
Obligation of U.S Treasury	$	6,471	$	—	$	(219	)	$	6,252
Obligations of U.S. government-sponsored entities and agencies		28,019		4		(3,356	)		24,667
Obligations of state and political subdivisions		85,917		46		(8,233	)		77,730
U.S. Government-sponsored mortgage-backed securities - residential		94,303		—		(14,936	)		79,367
U.S. Government-sponsored mortgage-backed securities - commercial		8,584		—		(1,752	)		6,832
U.S. Government-sponsored collateralized mortgage obligations – residential		60,333		92		(5,757	)		54,668
Other debt securities		17,039		—		(1,753	)		15,286
Total securities available-for-sale	$	300,666	$	142	$	(36,006	)	$	264,802

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
June 30, 2024
Obligations of state and political subdivisions	$	6,054	$	—	$	(524	)	$	5,530

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

	Three Months Ended December 31,				Six Months Ended December 31,
	2024		2023		2024		2023
Proceeds from sales	$	—	$	—	$	—	$	4,002
Gross realized gains		—		—		—		—
Gross realized losses		—		—		—		79

The income tax benefit related to the realized losses was $16 for the six-month period ended December 31, 2023.

The amortized cost and fair values of debt securities as of December 31, 2024, 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	$	6,841	$	6,760
Due after one year through five years		27,390		25,905
Due after five years through ten years		36,858		34,282
Due after ten years		58,807		51,098
Total		129,896		118,045
U.S. Government-sponsored mortgage-backed and related securities		173,255		151,860
Total securities available-for-sale	$	303,151	$	269,905
Held-to-Maturity
Due after one year through five years		1,969		1,891
Due after five years through ten years		3,535		3,403
Total securities held-to-maturity	$	5,504	$	5,294

Securities with a carrying value of approximately $157,695 and $153,908 were pledged at December 31, 2024 and June 30, 2024, respectively, to secure public deposits and commitments as required or permitted by law.

The following table summarizes the debt securities with unrealized and unrecognized losses as of December 31, 2024 and June 30, 2024, 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
December 31, 2024
Obligation of U.S. Treasury	$	—	$	—		$	2,879	$	(102	)	$	2,879	$	(102	)
Obligations of U.S. government-sponsored entities and agencies		1,057		(6	)		21,665		(3,143	)		22,722		(3,149	)
Obligations of state and political subdivisions		10,257		(359	)		58,669		(7,501	)		68,926		(7,860	)
U.S. Government-sponsored mortgage-backed securities – residential		8,088		(135	)		72,754		(14,335	)		80,842		(14,470	)
U.S. Government-sponsored mortgage-backed securities – commercial		—		—			6,839		(1,737	)		6,839		(1,737	)
Collateralized mortgage obligations - residential		17,474		(191	)		32,383		(5,231	)		49,857		(5,422	)
Other debt securities		1,975		(15	)		16,242		(745	)		18,217		(760	)
Total	$	38,851	$	(706	)	$	211,431	$	(32,794	)	$	250,282	$	(33,500	)

	Less than 12 Months				12 Months or more					Total
Held to Maturity	Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss
December 31, 2024
Obligations of state and political subdivisions	$	—	$	—	$	5,294	$	(210	)	$	5,294	$	(210	)
Total	$	—	$	—	$	5,294	$	(210	)	$	5,294	$	(210	)

	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, 2024
Obligations of U.S. Treasury	$	—	$	—		$	6,252	$	(219	)	$	6,252	$	(219	)
Obligations of U.S. government-sponsored entities and agencies		153		(4	)		22,899		(3,352	)		23,052		(3,356	)
Obligations of state and political subdivisions		8,110		(148	)		63,612		(8,085	)		71,722		(8,233	)
Mortgage-backed securities – residential		1,010		(3	)		78,357		(14,933	)		79,367		(14,936	)
Mortgage-backed securities – commercial		—		—			6,832		(1,752	)		6,832		(1,752	)
Collateralized mortgage obligations - residential		10,363		(96	)		36,049		(5,661	)		46,412		(5,757	)
Other debt securities		—		—			15,286		(1,753	)		15,286		(1,753	)
Total	$	19,636	$	(251	)	$	229,287	$	(35,755	)	$	248,923	$	(36,006	)

	Less than 12 Months				12 Months or more					Total
Held to Maturity	Fair Value		Unrecognized Loss		Fair Value		Unrecognized Loss			Fair Value		Unrecognized Loss
June 30, 2024
Obligations of state and political subdivisions	$	—	$	—	$	5,530	$	(524	)	$	5,530	$	(524	)
Total	$	—	$	—	$	5,530	$	(524	)	$	5,530	$	(524	)

At December 31, 2024, the Company’s portfolio consisted of 418 securities, of which 385 were available-for-sale and 3 were held-to-maturity securities in unrealized or unrecognized loss positions. As of December 31, 2024, no allowance for credit losses has been recognized on securities in an unrealized loss position as management does not believe any of the securities are impaired due to reasons of credit quality. This is based upon our analysis of the underlying risk characteristics, including credit ratings, and other qualitative factors related to our available-for-sale securities.

The Company’s mortgage-backed securities and collateralized mortgage obligations were issued by U.S. government-sponsored entities and agencies. The Company does not own any private label mortgage-backed securities. The Company’s municipal bond portfolio consists of tax-exempt and taxable general obligation and revenue bonds to a broad range of counties, towns, school districts, and other essential service providers. As of December 31, 2024, 97.3% of the municipal bonds held in the available-for-sale portfolio had an S&P or Moody’s investment grade rating, and 2.7% 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. The other debt securities consist of subordinated notes issued by other bank holding companies.

The issuers of all securities owned by the Company continue to make timely principal and interest payments under the securities’ contractual terms. The unrealized losses related to these securities have not been recognized into income because the decline in fair value is not attributed to credit quality, management does not intend to sell the securities, and it is not likely that management will be required to sell the securities prior to their anticipated recovery. The unrealized losses on these securities are primarily due to increases in market interest rates over the yields available at the time the underlying securities were purchased. The securities’ fair value is expected to recover as the securities approach their maturity date or repricing date or if market yields for such investments decline.

Equity Securities

The Company owns equity securities with an amortized cost of $400 and a fair value of $381 as of December 31, 2024, and June 30, 2024. Changes in the fair value of these securities are included in noninterest income on the consolidated statements of income. There were no net unrealized gains or losses on equity securities recognized in earnings and there were no sales of equity securities during the three- and six-month periods ended December 31, 2024 and 2023.