Debt Securities

3 Months Ended

Sep. 30, 2022

Debt Securities

Debt Securities

Note 3- Debt Securities

Debt securities have been classified in the consolidated balance sheet according to management’s intent. The carrying value of securities as of September 30, 2022 and June 30, 2022, consists of the following:

	September 30,		June 30,
	2022		2022
Available for sale debt securities, at fair value	$	10,089,176	$	10,617,238
Held to maturity debt securities, at amortized cost		526,517		532,363
	$	10,615,693	$	11,149,601

The amortized cost and fair value of debt securities, with gross unrealized gains and losses, are as follows:

			Gross			Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
September 30, 2022
Available for sale debt securities
States and municipalities	$	940,100	$	24,706	$	(18,363)	$	946,443
Mortgage-backed		2,602,734		24,857		(136,854)		2,490,737
Corporate bonds		7,161,541		—		(509,545)		6,651,996
	$	10,704,375	$	49,563	$	(664,762)	$	10,089,176
Held to maturity debt securities
Mortgage-backed	$	526,517	$	—	$	(142,775)	$	383,742

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
June 30, 2022
Available for sale debt securities
States and municipalities	$	1,050,034	$	25,395	$	(7,523)	$	1,067,906
Mortgage-backed		2,825,546		27,189		(113,681)		2,739,054
Corporate bonds		7,178,367		—		(368,089)		6,810,278
	$	11,053,947	$	52,584	$	(489,293)	$	10,617,238
Held to maturity debt securities
Mortgage-backed	$	532,363	$	—	$	(113,363)	$	419,000

Securities with a carrying value of approximately $582,000 and $667,000 as of September 30, 2022 and June 30, 2022, were pledged to secure public deposits and debt.

The amortized cost and fair value of debt securities by contractual maturity at September 30, 2022, follows:

	Available for Sale Debt Securities				Held to Maturity Debt Securities
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
September 30, 2022
Due in one year or less	$	60,000	$	59,542	$	—	$	—
Due from more than one to five years		3,381,685		3,279,527		—		—
Due from more than five to ten years		4,659,956		4,259,370		—		—
		8,101,641		7,598,439		—		—
Mortgage-backed securities		2,602,734		2,490,737		526,517		383,742
	$	10,704,375	$	10,089,176	$	526,517	$	383,742

There were no sales of available for sale debt securities during the three month periods ended September 30, 2022 and 2021.

The following table shows the gross unrealized losses and 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 September 30, 2022 and June 30, 2022:

	Less than 12 Months				12 Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
September 30, 2022
Available for sale debt securities
States and municipalities	$	(17,905)	$	766,778	$	(458)	$	59,542	$	(18,363)	$	826,320
Mortgage-backed		(119,823)		2,225,270		(17,031)		96,648		(136,854)		2,321,918
Corporate bonds		(427,837)		5,653,748		(81,708)		995,395		(509,545)		6,649,143
	$	(565,565)	$	8,645,796	$	(99,197)	$	1,151,585	$	(664,762)	$	9,797,381
Held to maturity debt securities
Mortgage-backed securities	$	(142,775)	$	383,742	$	—	$	—	$	(142,775)	$	383,742

	Less than 12 Months				12 Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
June 30, 2022
Available for sale debt securities
States and municipalities	$	(6,144)	$	688,504	$	(1,379)	$	58,621	$	(7,523)	$	747,125
Mortgage-backed		(98,106)		2,421,426		(15,575)		101,977		(113,681)		2,523,403
Corporate bonds		(302,991)		5,791,516		(65,098)		1,018,762		(368,089)		6,810,278
	$	(407,241)	$	8,901,446	$	(82,052)	$	1,179,360	$	(489,293)	$	10,080,806
Held to maturity debt securities
Mortgage-backed securities	$	(113,363)	$	419,000	$	—	$	—	$	(113,363)	$	419,000

There were 61 securities in an unrealized loss position in the less than 12 months category and eight securities in the 12 months or more category at September 30, 2022. There were 58 securities in an unrealized loss position in the less than 12 months category and six securities in the 12 months or more category at June 30, 2022. All of these unrealized losses were caused by interest rate changes. The contractual terms of the securities do not permit the issuer to settle the securities at a price less than the amortized cost basis of the investment. Because the Company does not intend to sell the securities and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, the Company does not consider the securities to be other-than-temporarily impaired.