Debt Securities

6 Months Ended

Dec. 31, 2023

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 December 31, 2023 and June 30, 2023, consists of the following:

		Unaudited
	December 31, 2023		June 30, 2023
Available for sale debt securities, at fair value	$	7,538,953	$	8,921,715
Held to maturity debt securities, at amortized cost		509,758		516,089
	$	8,048,711	$	9,437,804

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
December 31, 2023
Available for sale debt securities
States and municipalities	$	904,448	$	572	$	(3,572)	$	901,448
Mortgage-backed		1,628,792		23,163		(105,573)		1,546,382
Corporate bonds		6,061,523		—		(970,400)		5,091,123
	$	8,594,763	$	23,735	$	(1,079,545)	$	7,538,953
Held to maturity debt securities
Mortgage-backed	$	509,758	$	—	$	(99,856)	$	409,902

			Gross		Gross
	Amortized		Unrealized		Unrealized
	Cost		Gains		Losses		Fair Value
June 30, 2023
Available for sale debt securities
States and municipalities	$	904,308	$	503	$	(16,739)	$	888,072
Mortgage-backed		1,935,106		23,125		(111,217)		1,847,014
Corporate bonds		7,099,328		—		(912,699)		6,186,629
	$	9,938,742	$	23,628	$	(1,040,655)	$	8,921,715
Held to maturity debt securities
Mortgage-backed	$	516,089	$	—	$	(138,043)	$	378,046

There is no allowance for credit losses on available for sale and held to maturity debt securities at December 31, 2023. Securities with a carrying value of approximately $307,000 and $415,000 as of December 31, 2023 and June 30, 2023, respectively, were pledged to secure public deposits and debt.

The amortized cost and fair value of debt securities by contractual maturity at December 31, 2023, follows:

	Available for Sale Debt Securities				Held to Maturity Debt Securities
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
December 31, 2023
Due in one year or less	$	740,018	$	736,729	$	—	$	—
Due from more than one to five years		1,603,069		1,566,808		—		—
Due from more than five to ten years		4,622,884		3,689,034		—		—
		6,965,971		5,992,571		—		—
Mortgage-backed securities		1,628,792		1,546,382		509,758		409,902
	$	8,594,763	$	7,538,953	$	509,758	$	409,902

There were no sales of available for sale debt securities during the three and six month periods ended December 31, 2023 and 2022. The Company did recognize a gain of $24,000 on bonds that matured during the six months ended December 31, 2022 related to previous other than temporary impairment charges taken on these securities.

The following table shows the gross unrealized losses and fair value of the Company’s securities for which an allowance for credit losses has not been recorded, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2023 and June 30, 2023:

	Less than 12 Months				12 Months or More				Total
	Gross				Gross				Gross
	Unrealized				Unrealized				Unrealized
	Losses		Fair Value		Losses		Fair Value		Losses		Fair Value
December 31, 2023
Available for sale debt securities
States and municipalities	$	(1,831)	$	203,169	$	(1,741)	$	363,122	$	(3,572)	$	566,291
Mortgage-backed		(8)		1,179		(105,565)		1,411,574		(105,573)		1,412,753
Corporate bonds		—		—		(970,400)		5,091,123		(970,400)		5,091,123
	$	(1,839)	$	204,348	$	(1,077,706)	$	6,865,819	$	(1,079,545)	$	7,070,167
Held to maturity debt securities
Mortgage-backed securities	$	—	$	—	$	(99,856)	$	409,902	$	(99,856)	$	409,902

	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, 2023
Available for sale debt securities
States and municipalities	$	(16,739)	$	768,052	$	—	$	—	$	(16,739)	$	768,052
Mortgage-backed		(2,879)		109,037		(108,338)		1,615,016		(111,217)		1,724,053
Corporate bonds		(90,000)		410,000		(822,699)		5,776,629		(912,699)		6,186,629
	$	(109,618)	$	1,287,089	$	(931,037)	$	7,391,645	$	(1,040,655)	$	8,678,734
Held to maturity debt securities
Mortgage-backed securities	$	(138,043)	$	378,046	$	—	$	—	$	(138,043)	$	378,046

There were three securities in an unrealized loss position in the less than 12 months category and 55 securities in the 12 months or more category at December 31, 2023. There were 15 securities in an unrealized loss position in the less than 12 months category and 52 securities in the 12 months or more category at June 30, 2023. Unrealized losses have not been recognized into income because the decline in fair value is largely due to changes in interest rates and other market conditions. 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. 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.