Note 2 - Securities

6 Months Ended

Dec. 31, 2025

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, 2025, and June 30, 2025:

Available –for-Sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
December 31, 2025
Obligations of U.S. Treasury	$	998	$	—	$	(17	)	$	981
Obligations of U.S. government-sponsored entities and agencies		25,424		34		(2,038	)		23,420
Obligations of state and political subdivisions		84,110		203		(5,170	)		79,143
U.S. Government-sponsored mortgage-backed securities–residential		85,123		175		(9,815	)		75,483
U.S. Government-sponsored mortgage-backed securities– commercial		8,558		—		(1,297	)		7,261
U.S. Government-sponsored collateralized mortgage obligations– residential		66,742		463		(3,915	)		63,290
Other debt securities		12,917		122		(270	)		12,769
Total securities available-for-sale	$	283,872	$	997	$	(22,522	)	$	262,347

Held-to-Maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
December 31, 2025
Obligations of state and political subdivisions	$	4,651	$	—	$	(46	)	$	4,605

Available-for-sale	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
June 30, 2025
Obligation of U.S Treasury	$	2,991	$	—	$	(54	)	$	2,937
Obligations of U.S. government-sponsored entities and agencies		26,117		47		(2,427	)		23,737
Obligations of state and political subdivisions		84,120		24		(8,685	)		75,459
U.S. Government-sponsored mortgage-backed securities - residential		91,676		96		(11,440	)		80,332
U.S. Government-sponsored mortgage-backed securities - commercial		8,567		—		(1,461	)		7,106
U.S. Government-sponsored collateralized mortgage obligations – residential		71,134		470		(4,543	)		67,061
Other debt securities		17,819		58		(634	)		17,243
Total securities available-for-sale	$	302,424	$	695	$	(29,244	)	$	273,875

Held-to-maturity	Amortized Cost		Gross Unrecognized Gains		Gross Unrecognized Losses			Fair Value
June 30, 2025
Obligations of state and political subdivisions	$	5,167	$	—	$	(141	)	$	5,026

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

	Three Months Ended December 31,					Six Months Ended December 31,
	2025			2024		2025			2024
Proceeds from sales	$	919		$	—	$	919		$	—
Gross realized losses		(26	)		—		(26	)		—

The income tax benefit related to the realized losses was $5 for the three- and six-month periods ended December 31, 2025.

The amortized cost and fair values of debt securities as of December 31, 2025, 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	$	5,238	$	5,201
Due after one year through five years		36,510		35,159
Due after five years through ten years		27,242		26,436
Due after ten years		54,459		49,517
Total		123,449		116,313
U.S. Government-sponsored mortgage-backed and related securities		160,423		146,034
Total securities available-for-sale	$	283,872	$	262,347
Held-to-Maturity
Due after one year through five years	$	1,625	$	1,599
Due after five years through ten years		3,026		3,006
Total securities held-to-maturity	$	4,651	$	4,605

Securities with a carrying value of approximately $156,352 and $164,473 were pledged at December 31, 2025 and June 30, 2025, respectively, to secure public deposits and commitments as required or permitted by law.

The following tables summarize the debt securities with unrealized and unrecognized losses as of December 31, 2025 and June 30, 2025, 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, 2025
Obligation of U.S. Treasury	$	—	$	—		$	981		(17	)	$	981	$	(17	)
Obligations of U.S. government-sponsored entities and agencies		—		—			20,699		(2,038	)		20,699		(2,038	)
Obligations of state and political subdivisions		3,000		(11	)		60,850		(5,159	)		63,850		(5,170	)
U.S. Government-sponsored mortgage-backed securities – residential		—		—			66,873		(9,815	)		66,873		(9,815	)
U.S. Government-sponsored mortgage-backed securities – commercial		—		—			7,261		(1,297	)		7,261		(1,297	)
U.S. Government-sponsored collateralized mortgage obligations - residential		5,666		(15	)		31,681		(3,900	)		37,347		(3,915	)
Other debt securities		1,477		(23	)		8,805		(247	)		10,282		(270	)
Total	$	10,143	$	(49	)	$	197,150	$	(22,473	)	$	207,293	$	(22,522	)

	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, 2025
Obligations of state and political subdivisions	$	332	$	(1	)	$	4,273	$	(45	)	$	4,605	$	(46	)

	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, 2025
Obligations of U.S. Treasury	$	—	$	—		$	2,937	$	(54	)	$	2,937	$	(54	)
Obligations of U.S. government-sponsored entities and agencies		—		—			20,898		(2,427	)		20,898		(2,427	)
Obligations of state and political subdivisions		6,867		(308	)		62,570		(8,377	)		69,437		(8,685	)
U.S. Government-sponsored mortgage-backed securities – residential		1,134		(5	)		70,955		(11,435	)		72,089		(11,440	)
U.S. Government-sponsored mortgage-backed securities – commercial		—		—			7,106		(1,461	)		7,106		(1,461	)
U.S. Government-sponsored collateralized mortgage obligations - residential		7,018		(76	)		32,632		(4,467	)		39,650		(4,543	)
Other debt securities		970		(12	)		13,327		(622	)		14,297		(634	)
Total	$	15,989	$	(401	)	$	210,425	$	(28,843	)	$	226,414	$	(29,244	)

	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, 2025
Obligations of state and political subdivisions	$	—	$	—	$	5,026	$	(141	)	$	5,026	$	(141	)

At December 31, 2025, the Company’s portfolio consisted of 404 securities, of which 318 were available-for-sale and 3 were held-to-maturity securities in unrealized or unrecognized loss positions. As of December 31, 2025, 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, 2025, 97.5% of the municipal bonds held in the available-for-sale portfolio had an S&P or Moody’s investment grade rating, and 2.5% were non-rated issues. The municipal bonds in the held-to-maturity portfolio are all non-rated issues to local entities that also are 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 owned equity securities with an amortized cost of $400 and a fair value of $392 as of June 30, 2025. The equity securities were redeemed on December 31, 2025 for their original cost of $400. Therefore, the Company recognized a net gain of $8 in other noninterest income for the three- and six-month periods ended December 31, 2025. There was no gain or loss on equity securities recognized in earnings during the three- and six-month periods ended December 31, 2024.