Available for Sale Securities

6 Months Ended

Dec. 31, 2024

Available for Sale Securities

Available for Sale Securities

Note 3:  Available for Sale Securities

The amortized cost, gross unrealized gains, gross unrealized losses, ACL, and approximate fair value of securities available for sale consisted of the following:

	December 31, 2024
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for		Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Value
Debt securities:
Obligations of states and political subdivisions	$	29,855	$	3	$	(2,133)	$	—	$	27,725
Corporate obligations		33,075		114		(1,156)		—		32,033
Asset-backed securities		40,962		995		(189)		—		41,768
Other securities		4,968		20		(66)		—		4,922
Total debt securities		108,860		1,132		(3,544)		—		106,448
Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		137,613		721		(6,566)		—		131,768
Commercial MBS issued by GSEs		64,937		201		(5,385)		—		59,753
CMOs issued by GSEs		177,676		87		(7,672)		—		170,091
Total MBS and CMOs		380,226		1,009		(19,623)		—		361,612
Total AFS securities	$	489,086	$	2,141	$	(23,167)	$	—	$	468,060

	June 30, 2024
			Gross		Gross		Allowance		Estimated
	Amortized		Unrealized		Unrealized		for		Fair
(dollars in thousands)	Cost		Gains		Losses		Credit Losses		Value
Debt securities:
Obligations of states and political subdivisions	$	29,960	$	4	$	(2,211)	$	—	$	27,753
Corporate obligations		32,998		60		(1,781)		—		31,277
Asset-backed securities		57,403		1,525		(249)		—		58,679
Other securities		5,387		20		(74)		—		5,333
Total debt securities		125,748		1,609		(4,315)		—		123,042
Mortgage-backed securities (MBS) and collateralized mortgage obligations (CMOs):
Residential MBS issued by governmental sponsored enterprises (GSEs)		110,918		692		(6,855)		—		104,755
Commercial MBS issued by GSEs		65,195		297		(5,746)		—		59,746
CMOs issued by GSEs		148,382		82		(8,104)		—		140,360
Total MBS and CMOs		324,495		1,071		(20,705)		—		304,861
Total AFS securities	$	450,243	$	2,680	$	(25,020)	$	—	$	427,903

The amortized cost and estimated fair value of available for sale securities, by contractual 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 penalties.

	December 31, 2024
	Amortized		Estimated
(dollars in thousands)	Cost		Fair Value
Within one year	$	1,444	$	1,442
After one year but less than five years		26,914		26,638
After five years but less than ten years		43,751		41,755
After ten years		36,751		36,613
Total investment securities		108,860		106,448
MBS and CMOs		380,226		361,612
Total AFS securities	$	489,086	$	468,060

The carrying value of marketable securities pledged as collateral to secure public deposits amounted to $274.2 million and $265.5 million at December 31, 2024 and June 30, 2024, respectively. The securities pledged consist of $146.4 million and $137.0 million of MBS, $100.8 million and $103.5 million of CMOs, $23.2 million and $20.8 million of Obligations of State and Political Subdivisions Obligations, and $3.9 million and $4.3 million of Other Securities at December 31, 2024 and June 30, 2024, respectively.

The following tables show the gross unrealized losses and fair value of the Company’s investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position for which an ACL has not been recorded at December 31, 2024 and June 30, 2024:

	December 31, 2024
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
(dollars in thousands)
Obligations of state and political subdivisions	$	7,789	$	166	$	17,649	$	1,967	$	25,438	$	2,133
Corporate obligations		981		3		20,575		1,153		21,556		1,156
Asset-backed securities		—		—		3,682		189		3,682		189
Other securities		33		—		4,302		66		4,335		66
MBS and CMOs		127,978		1,075		161,370		18,548		289,348		19,623
Total AFS securities	$	136,781	$	1,244	$	207,578	$	21,923	$	344,359	$	23,167

	June 30, 2024
	Less than 12 months				12 months or more				Total
			Unrealized				Unrealized				Unrealized
	Fair Value		Losses		Fair Value		Losses		Fair Value		Losses
(dollars in thousands)
Obligations of state and political subdivisions	$	3,720	$	38	$	21,762	$	2,173	$	25,482	$	2,211
Corporate obligations		—		—		25,295		1,781		25,295		1,781
Asset-backed securities		—		—		7,234		249		7,234		249
Other securities		4,404		31		287		43		4,691		74
MBS and CMOs		56,820		621		193,382		20,084		250,202		20,705
Total AFS securities	$	64,944	$	690	$	247,960	$	24,330	$	312,904	$	25,020

The following information pertaining to unrealized losses and ACL on securities, by security type, is presented as of December 31, 2024.

Obligations of state and political subdivisions. The unrealized losses on the Company’s investments in obligations of state and political subdivisions include 14 individual securities which have been in an unrealized loss position for less than 12 months and 40 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Corporate and Other Obligations. The unrealized losses on the Company’s investments in corporate obligations include three securities which have been in an unrealized loss position for less than 12 months and 15 individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

Asset-Backed Securities. The unrealized losses on the Company’s investments in asset-backed securities include no individual securities which have been in an unrealized loss position for less than 12 months and four individual securities which have been in an unrealized loss position for more than 12 months. The securities are performing and are of high credit quality. The unrealized loss was caused by variations in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

MBS and CMOs. The unrealized losses on the Company’s investments in MBS and CMOs include 33 individual securities which have been in an unrealized loss position for less than 12 months, and 105 individual securities which have been in an unrealized loss position for 12 months or more. The securities are performing and are of high credit quality. The unrealized losses were caused by increases in market interest rates since purchase or acquisition. Because the Company does not intend to sell these securities and it is more likely than not that the Company will not be required to sell these securities prior to recovery of their amortized cost basis, which may be maturity, the Company has not recorded an ACL on these securities.

The Company does not believe that any individual unrealized loss as of December 31, 2024, is the result of a credit loss. However, the Company could be required to recognize an ACL in future periods with respect to its available for sale investment securities portfolio.

Credit Losses Recognized on Investments.  There were no credit losses recognized in income and other losses or recorded in other comprehensive loss for the three- or six- month periods ended December 31, 2024 and 2023.