Debt Securities

3 Months Ended

Sep. 30, 2020

Investments, Debt and Equity Securities [Abstract]

Securities available for sale consist of the following at the dates indicated:


	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Government Agencies	$	3,961	$	203	$	—	$	4,164
Residential MBS of U.S. Government Agencies and GSEs	42,438		1,785		(42)		44,181
Municipal Bonds	14,252		589		—		14,841
Corporate Bonds	32,691		284		(2)		32,973

Total	$	93,342	$	2,861	$	(44)	$	96,159


	June 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. Government Agencies	$	3,957	$	216	$	—	$	4,173
Residential MBS of U.S. Government Agencies and GSEs	46,629		1,776		(50)		48,355
Municipal Bonds	16,090		541		—		16,631
Corporate Bonds	58,242		270		(134)		58,378

Total	$	124,918	$	2,803	$	(184)	$	127,537

Debt securities available for sale by contractual maturity at September 30, 2020 are shown below. MBS are not included in the maturity categories because the borrowers in the underlying pools may prepay without penalty; therefore, it is unlikely that the securities will pay at their stated maturity schedule.



	September 30, 2020
	Amortized Cost		Estimated Fair Value
Due within one year	$	28,086	$	28,188
Due after one year through five years	18,910		19,640
Due after five years through ten years	3,176		3,418
Due after ten years	732		732
Mortgage-backed securities	42,438		44,181
Total	$	93,342	$	96,159

The Company had no sales of securities available for sale during the three months ended September 30, 2020 and 2019. There were no gross realized gains or losses for the three months ended September 30, 2020 and 2019.

Securities available for sale with costs totaling $86,804 and $82,888 and market values of $88,134 and $84,456 at September 30, 2020 and June 30, 2020, respectively, were pledged as collateral to secure various public deposits and other borrowings.

The gross unrealized losses and the fair value for securities available for sale aggregated by the length of time that individual securities have been in a continuous unrealized loss position as of September 30, 2020 and June 30, 2020 were as follows:


	September 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Residential MBS of U.S. Government Agencies and GSEs	$	64	$	(8)	$	2,100	$	(34)	$	2,164	$	(42)

Corporate Bonds	6,453		(2)		—		—		6,453		(2)
Total	$	6,517	$	(10)	$	2,100	$	(34)	$	8,617	$	(44)


	June 30, 2020
	Less than 12 Months				12 Months or More				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses

Residential MBS of U.S. Government Agencies and GSEs	227		(10)		2,435		(40)		2,662		(50)

Corporate Bonds	11,779		(134)		—		—		11,779		(134)
Total	$	12,006	$	(144)	$	2,435	$	(40)	$	14,441	$	(184)

The total number of securities with unrealized losses at September 30, 2020, and June 30, 2020 were 20 and 24, respectively.

Management evaluates securities for impairment where there has been a decline in fair value below the amortized cost basis of a security to determine whether there is a credit loss associated with the decline in fair value on at least a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. All debt securities available for sale in an unrealized loss position as of September 30, 2020 continue to perform as scheduled and we do not believe that there is a credit loss or that a provision for credit losses is necessary. Also, as part of our evaluation of our intent and ability to hold investments for a period of time sufficient to allow for any anticipated recovery in the market, we consider our investment strategy, cash flow needs, liquidity position, capital adequacy and interest rate risk position. We do not currently intend to sell the securities within the portfolio and it is not more-likely-than-not that we will be required to sell the debt securities. See Note 1 – Summary of Significant Account Policies for further discussion.

Management continues to monitor all of our securities with a high degree of scrutiny. There can be no assurance that we will not conclude in future periods that conditions existing at that time indicate some or all of its securities may be sold or would require a charge to earnings as a provision for credit losses in such periods.