HomeTrust Bancshares, Inc. [HTBI] Filings

10-Q 1 htbi-20230930.htm 10-Q htbi-20230930

UNITED STATES SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended September 30, 2023

☐ TRANSITION REPORT UNDER SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from _______ to ________

Commission file number: 001-35593

HOMETRUST BANCSHARES, INC.

(Exact name of registrant as specified in its charter)


Maryland						45-5055422
(State or other jurisdiction of incorporation of organization)						(I.R.S. Employer Identification No.)

10 Woodfin Street, Asheville, North Carolina 28801

(Address of principal executive offices; Zip Code)

(828) 259-3939

(Registrant's telephone number, including area code)

None

(Former name, former address and former fiscal year, if changed since last report)

Securities registered pursuant to Section 12(b) of the Act:


Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $.01 per share	HTBI	The NASDAQ Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 and 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer ☐

Accelerated filer ☒

Non-accelerated filer ☐

Smaller reporting company ☐

Emerging growth company ☐


If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 17,383,307 shares of common stock, par value of $0.01 per share, issued and outstanding as of November 2, 2023.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARIES

FORM 10-Q

TABLE OF CONTENTS


			Page
PART I FINANCIAL INFORMATION

Item 1	Financial Statements

		Consolidated Balance Sheets (Unaudited) at September 30, 2023 and June 30, 2023	3

		Consolidated Statements of Income (Unaudited) for the Three Months Ended September 30, 2023 and 202 2	4

		Consolidated Statements of Comprehensive Income (Unaudited) for the Three Months Ended September 30, 2023 and 2022	5

		Consolidated Statements of Changes in Stockholders' Equity (Unaudited) for the Three Months Ended September 30, 2023 and 2022	6

		Consolidated Statements of Cash Flows (Unaudited) for the Three Months Ended September 30, 2023 and 2022	7

		Notes to Consolidated Financial Statements	9

Item 2	Management's Discussion and Analysis of Financial Condition and Results of Operations		32

Item 3	Quantitative and Qualitative Disclosures about Market Risk		42

Item 4	Controls and Procedures		42

PART II OTHER INFORMATION

Item 1	Legal Proceedings		42

Item 1A	Risk Factors		42

Item 2	Unregistered Sales of Equity Securities and Use of Proceeds		42

Item 3	Defaults Upon Senior Securities		42

Item 4	Mine Safety Disclosures		42

Item 5	Other Information		42

Item 6	Exhibits		42

SIGNATURES			45

Glossary of Defined Terms

The following terms may be used throughout this Form 10-Q, including the Notes to Consolidated Financial Statements in Item 1 and Management's Discussion and Analysis of Financial Condition and Results of Operations in Item 2 of this Form 10-Q.


Term						Definition
ACL						Allowance for Credit Losses
AFS						Available-For-Sale
ASC						Accounting Standards Codification
ASU						Accounting Standards Update

BOLI						Bank Owned Life Insurance
CARES Act						Coronavirus Aid, Relief, and Economic Security Act of 2020
CD						Certificate of Deposit
CDA						Collateral Dependent Asset
CECL						Current Expected Credit Losses
CET1						Common Equity Tier 1
COVID-19						Coronavirus Disease 2019

DCF						Discounted Cash Flows
Dodd-Frank Act						Dodd-Frank Wall Street Reform and Consumer Protection Act
ECL						Expected Credit Losses
EPS						Earnings Per Share
ESOP						Employee Stock Ownership Plan
FASB						Financial Accounting Standards Board
FDIC						Federal Deposit Insurance Corporation
Federal Reserve						Board of Governors of the Federal Reserve System
FHLB or FHLB of Atlanta						Federal Home Loan Bank
FRB						Federal Reserve Bank of Richmond
GSE						Government-Sponsored Enterprises
HELOC						Home Equity Line of Credit
IRLC						Interest Rate Lock Commitments
LIBOR						London Interbank Offered Rate
MBS						Mortgage-Backed Security
NCCOB						North Carolina Office of the Commissioner of Banks
PCD						Purchased Financial Assets with Credit Deterioration
Quantum						Quantum Capital Corp. and its wholly owned subsidiary, Quantum National Bank
REO						Real Estate Owned
ROA						Return on Assets
ROE						Return on Equity
ROU						Right of Use
RSU						Restricted Stock Unit
SBA						U.S. Small Business Administration
SBIC						Small Business Investment Companies
SEC						Securities and Exchange Commission
SOFR						Secured Overnight Financing Rate
TBA						To-be-announced
TDR						Troubled Debt Restructuring
US GAAP						Generally Accepted Accounting Principles in the United States

PART I. FINANCIAL INFORMATION

Item 1. Financial Statements

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Balance Sheets

(Dollars in thousands, except per share data)


	(Unaudited)
	September 30, 2023		June 30, 2023
Assets
Cash	$	18,090	$	19,266
Interest-bearing deposits	306,924		284,231
Cash and cash equivalents	325,014		303,497

Certificates of deposit in other banks	35,380		33,152
Debt securities available for sale, at fair value (amortized cost of $140,316 and $157,251 at September 30, 2023 and June 30, 2023, respectively)	134,348		151,926
FHLB and FRB stock	19,612		20,208
SBIC investments, at cost	14,586		14,927
Loans held for sale, at fair value	4,616		6,947
Loans held for sale, at the lower of cost or fair value	200,834		161,703
Total loans, net of deferred loan fees and costs	3,659,914		3,658,823
Allowance for credit losses – loans	(47,417)		(47,193)
Loans, net	3,612,497		3,611,630
Premises and equipment, net	72,463		73,171
Accrued interest receivable	16,513		14,829

Deferred income taxes, net	9,569		10,912
BOLI	106,059		106,572
Goodwill	34,111		34,111
Core deposit intangibles, net	9,918		10,778
Other assets	56,477		53,124
Total assets	$	4,651,997	$	4,607,487
Liabilities and stockholders' equity
Liabilities
Deposits	$	3,640,961	$	3,601,168
Junior subordinated debt	9,995		9,971
Borrowings	452,263		457,263

Other liabilities	64,367		67,899
Total liabilities	4,167,586		4,136,301
Commitments and contingencies – See Note 12
Stockholders' equity
Preferred stock, $0.01 par value, 10,000,000 shares authorized, none issued or outstanding	—		—
Common stock, $0.01 par value, 60,000,000 shares authorized, 17,380,307 shares issued and outstanding at September 30, 2023; 17,366,673 at June 30, 2023	174		174
Additional paid in capital	171,663		171,222
Retained earnings	321,799		308,651
Unearned ESOP shares	(4,629)		(4,761)
Accumulated other comprehensive loss	(4,596)		(4,100)
Total stockholders' equity	484,411		471,186
Total liabilities and stockholders' equity	$	4,651,997	$	4,607,487

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Income

(Dollars in thousands, except per share data)


	(Unaudited)
	Three Months Ended September 30,
	2023		2022
Interest and dividend income
Loans	$	58,496	$	33,245
Commercial paper	—		1,116
Debt securities available for sale	1,259		678
Other investments and interest-bearing deposits	2,110		888
Total interest and dividend income	61,865		35,927
Interest expense
Deposits	16,429		1,395
Junior subordinated debt	236		—
Borrowings	3,040		12
Total interest expense	19,705		1,407
Net interest income	42,160		34,520
Provision for credit losses	2,570		3,987
Net interest income after provision for credit losses	39,590		30,533
Noninterest income
Service charges and fees on deposit accounts	2,318		2,338
Loan income and fees	559		570
Gain on sale of loans held for sale	1,293		1,586
BOLI income	1,749		527

Operating lease income	1,785		1,585
Loss on sale of premises and equipment	—		(12)
Other	923		804
Total noninterest income	8,627		7,398
Noninterest expense
Salaries and employee benefits	16,514		14,815
Occupancy expense, net	2,489		2,396
Computer services	3,173		2,763
Telephone, postage, and supplies	652		603
Marketing and advertising	487		590
Deposit insurance premiums	717		542

Core deposit intangible amortization	859		34
Merger-related expenses	—		474

Other	4,673		3,872
Total noninterest expense	29,564		26,089
Net income before income taxes	18,653		11,842
Income tax expense	3,820		2,643
Net income	$	14,833	$	9,199
Per share data
Net income per common share
Basic	$	0.88	$	0.61
Diluted	$	0.88	$	0.60

Average shares outstanding
Basic	16,792,177		14,988,006
Diluted	16,800,901		15,130,762

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Comprehensive Income

(Dollars in thousands)


	(Unaudited)
	Three Months Ended September 30,
	2023		2022
Net income	$	14,833	$	9,199
Other comprehensive loss
Unrealized holding losses on debt securities available for sale
Losses arising during the period	(643)		(2,138)
Deferred income tax benefit	147		492


Total other comprehensive loss	(496)		(1,646)
Comprehensive income	$	14,337	$	7,553

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Changes in Stockholders' Equity

(Dollars in thousands)


	(Unaudited)
	Three Months Ended September 30, 2023
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2023	17,366,673	$	174	$	171,222	$	308,651	$	(4,761)	$	(4,100)	$	471,186
Net income	—	—		—		14,833		—		—		14,833

Cash dividends declared on common stock, $0.10/common share	—	—		—		(1,685)		—		—		(1,685)

Forfeited restricted stock	(1,630)	—		—		—		—		—		—
Retired stock	(5,730)	—		(133)		—		—		—		(133)
Granted restricted stock	1,000	—		—		—		—		—		—
Stock issued for RSUs	18,494	—		—		—		—		—		—

Exercised stock options	1,500	—		24		—		—		—		24
Share-based compensation expense	—	—		383		—		—		—		383
ESOP compensation expense	—	—		167		—		132		—		299
Other comprehensive loss	—	—		—		—		—		(496)		(496)
Balance at September 30, 2023	17,380,307	$	174	$	171,663	$	321,799	$	(4,629)	$	(4,596)	$	484,411

	(Unaudited)
	Three Months Ended September 30, 2022
	Common Stock			Additional Paid In Capital		Retained Earnings		Unearned ESOP Shares		Accumulated Other Comprehensive Loss		Total Stockholders' Equity
	Shares	Amount
Balance at June 30, 2022	15,591,466	$	156	$	126,106	$	270,276	$	(5,290)	$	(2,403)	$	388,845
Net income	—	—		—		9,199		—		—		9,199

Cash dividends declared on common stock, $0.09/common share	—	—		—		(1,355)		—		—		(1,355)

Forfeited restricted stock	(400)	—		—		—		—		—		—
Retired stock	(4,079)	—		(95)		—		—		—		(95)
Granted restricted stock	4,500	—		—		—		—		—		—
Stock issued for RSUs	13,861	—		—		—		—		—		—

Exercised stock options	27,000	—		388		—		—		—		388
Share-based compensation expense	—	—		567		—		—		—		567
ESOP compensation expense	—	—		187		—		132		—		319
Other comprehensive loss	—	—		—		—		—		(1,646)		(1,646)
Balance at September 30, 2022	15,632,348	$	156	$	127,153	$	278,120	$	(5,158)	$	(4,049)	$	396,222

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows

(Dollars in thousands)


	(Unaudited)
	Three Months Ended September 30,
	2023		2022
Operating activities
Net income	$	14,833	$	9,199
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	2,570		3,987
Depreciation and amortization of premises and equipment and equipment for operating leases	2,401		2,169
Deferred income tax expense	1,490		141
Net accretion of purchase accounting adjustments on loans	(378)		(178)
Net amortization and accretion	1,693		(105)
SBIC investments income	(540)		(349)

Loss from sale of premises and equipment	—		12


Gain incurred at the end of operating leases	(51)		(148)
BOLI income	(1,749)		(527)
Gain on sale of loans held for sale	(1,293)		(1,586)
Origination of loans held for sale	(107,559)		(58,035)
Proceeds from sale of loans held for sale	65,451		57,570
New deferred loan origination fees, net	(1,139)		(1,856)
(Increase) decrease in accrued interest receivable and other assets	(6,279)		1,291
ESOP compensation expense	299		319
Share-based compensation expense	383		567
Decrease in other liabilities	(3,093)		(4,697)
Net cash (used in) provided by operating activities	(32,961)		7,774
Investing activities
Purchases of debt securities available for sale	(601)		(48,014)
Proceeds from maturities, calls and paydowns of debt securities available for sale	17,859		11,045
Purchases of commercial paper	—		(210,292)
Proceeds from maturities and calls of commercial paper	—		320,689
Purchases of CDs in other banks	(3,972)		(4,980)
Proceeds from maturities of CDs in other banks	1,744		996
Net (purchases) redemptions of FHLB and FRB stock	596		(78)
Net capital distributions from SBIC investments, at cost	881		872

Net decrease (increase) in loans	3,498		(92,109)
Purchase of BOLI	(23)		(29)
Death benefit proceeds from BOLI policies	2,285		—
Purchase of equipment for operating leases	(5,261)		(577)
Sale of equipment for operating leases	4,749		1,239
Purchase of premises and equipment	(276)		(616)
Proceeds from sale of premises and equipment and assets held for sale	—		1,275




Net cash provided by (used in) investing activities	21,479		(20,579)
Financing activities
Net increase in deposits	39,793		2,907

Net decrease in short-term borrowings	(5,000)		—



Cash dividends paid	(1,685)		(1,355)
Retired stock	(133)		(95)
Exercised stock options	24		388
Net cash provided by financing activities	32,999		1,845
Net increase (decrease) in cash and cash equivalents	21,517		(10,960)
Cash and cash equivalents at beginning of period	303,497		105,119
Cash and cash equivalents at end of period	$	325,014	$	94,159

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Consolidated Statements of Cash Flows (continued)

(Dollars in thousands)


	(Unaudited)
	Three Months Ended September 30,
	2023		2022
Supplemental disclosures
Cash paid during the period for
Interest	$	17,191	$	1,296
Income taxes	5,400		127
Noncash transactions
Unrealized loss in value of debt securities available for sale, net of income taxes	(496)		(1,646)

Transfer of loans held for sale to loans held for investment	8,214		5,219



ROU asset and lease liabilities for operating lease accounting	846		—

The accompanying notes are an integral part of these consolidated financial statements.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

1. Summary of Significant Accounting Policies

The consolidated unaudited financial statements presented in this report include the accounts of HomeTrust Bancshares, Inc., a Maryland corporation (“HomeTrust”), and its wholly-owned subsidiary, HomeTrust Bank (the “Bank”). As used throughout this report, the term the “Company” refers to HomeTrust and its consolidated subsidiary, unless the context otherwise requires. HomeTrust is a bank holding company primarily engaged in the business of planning, directing, and coordinating the business activities of the Bank. The Bank is a North Carolina state chartered bank and provides a wide range of retail and commercial banking products within its geographic footprint, which includes: North Carolina (the Asheville metropolitan area, Greensboro/"Piedmont" region, Charlotte, and Raleigh/Cary), Upstate South Carolina (Greenville), East Tennessee (Kingsport/Johnson City, Knoxville, and Morristown), Southwest Virginia (the Roanoke Valley) and Georgia (Greater Atlanta). The Bank operates under a single set of corporate policies and procedures and is recognized as a single banking segment for financial reporting purposes.

As a result of its merger with Quantum on February 12, 2023, HomeTrust became the 100% successor owner of the Quantum Capital Statutory Trust II Delaware trust. The sole assets of the trust represent the proceeds of offerings loaned in exchange for subordinated debentures with similar terms to the trust preferred securities.

The accompanying unaudited consolidated financial statements have been prepared in accordance with US GAAP for interim financial information and in accordance with the instructions to Form 10-Q and Article 10 of Regulation S-X as promulgated by the SEC. Accordingly, they do not include all the information and footnotes required by US GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation of the financial position and results of operations for the periods presented have been included. It is recommended that these unaudited interim consolidated financial statements be read in conjunction with the audited consolidated financial statements and notes thereto included in the Company's Annual Report on Form 10-K for the year ended June 30, 2023 ("2023 Form 10-K") filed with the SEC on September 11, 2023. The results of operations for the three months ended September 30, 2023 are not necessarily indicative of results that may be expected for the six-month transition period ending December 31, 2023, the period which will be covered on a Transition Report Form 10-KT associated with the Company's change in fiscal year end.

The preparation of financial statements in conformity with US GAAP requires management to make estimates and assumptions that affect amounts reported in the financial statements. Various elements of the Company's accounting policies, by their nature, are inherently subject to estimation techniques, valuation assumptions, and other subjective assessments. In particular, management has identified the determination of the provision and the ACL on loans; the accounting for business combinations, core deposit intangible, and acquired loans; and goodwill as accounting policies that, due to the judgments, estimates and assumptions inherent in these policies, are critical to an understanding of the Company's financial statements. These policies and the related judgments, estimates and assumptions are described in greater detail in the notes to the Consolidated Financial Statements and Management's Discussion and Analysis of Financial Condition and Results of Operations (Critical Accounting Policies) in the 2023 Form 10-K. Management believes that the judgments, estimates, and assumptions used in the preparation of the financial statements are appropriate based on the factual circumstances at the time. However, given the sensitivity of the financial statements to these critical accounting policies, the use of other judgments, estimates, and assumptions could result in material differences in the Company's results of operations or financial condition. Further, subsequent changes in economic or market conditions could have a material impact on these estimates and the Company's financial condition and operating results in future periods.

Reclassifications

To maintain consistency and comparability, certain amounts from prior periods have been reclassified to conform to current period presentation with no effect on net income or stockholders’ equity as previously reported.

2. Recent Accounting Pronouncements

Adoption of New Accounting Standards

ASU 2022-02, "Financial Instruments—Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures." This ASU eliminates the TDR recognition and measurement guidance and requires that an entity evaluate whether the modification represents a new loan or a continuation of an existing loan. The amendment also adjusts the disclosures related to modifications and requires entities to disclose current-period gross write-offs by year of origination within the existing vintage disclosures.

The Company adopted the standard using the modified retrospective transition method on July 1, 2023. The adoption of this ASU did not have a material impact on the Company's ACL, but as a result of the elimination of the concept of TDRs, the balance of individually evaluated loans decreased by $1.9 million. The changes to financial statement disclosures have been reflected in this filing, specifically "Note 6 – Loans and Allowance for Credit Losses on Loans".

3. Merger with Quantum

On February 12, 2023, the Company merged with Quantum which operated two locations in the Atlanta metro area. The aggregate amount of consideration paid per the purchase agreement of approximately $70,771, inclusive of consideration of common stock, other cash consideration, and cash in lieu of fractional shares, included $15,869 of cash consideration paid by Quantum to its stockholders in advance of the closing date as is further described below. These distributions reduced Quantum's stockholders' equity by an equal amount prior to the transaction closing date.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

The following table provides a summary of the assets acquired, liabilities assumed, associated preliminary fair value adjustments, and provisional period adjustments by the Company as of the merger date. As provided for under US GAAP, management has up to 12 months following the date of merger to finalize the fair value adjustments.


	Quantum		Fair Value Adjustments		Provisional Period Adjustments		As Recorded by HomeTrust
Assets acquired
Cash and cash equivalents	$	47,769	$	—	$	—	$	47,769
Debt securities available for sale	10,608		—		—		10,608
FHLB and FRB stock	1,125		—		—		1,125
Loans(1)	567,140		(5,207)		—		561,933
Premises and equipment	4,415		4,668		—		9,083
Accrued interest receivable	1,706		—		—		1,706

BOLI	9,066		—		—		9,066

Core deposit intangibles	—		12,210		—		12,210
Other assets	2,727		569		(179)		3,117
Total assets acquired	$	644,556	$	12,240	$	(179)	$	656,617
Liabilities assumed
Deposits	$	570,419	$	183	$	—	$	570,602
Junior subordinated debt	11,341		(1,408)		—		9,933
Other borrowings	24,728		—		—		24,728
Deferred income taxes	—		1,341		250		1,591
Other liabilities	3,334		—		—		3,334
Total liabilities assumed	$	609,822	$	116	$	250	$	610,188

Net assets acquired							$	46,429

Consideration paid
Common stock consideration
Shares of Quantum							574,157
Exchange ratio							2.3942
HomeTrust common stock issued							1,374,647
Price per share of HomeTrust common stock on February 10, 2023							$	27.45
HomeTrust common stock consideration							$	37,734
Cash consideration(2)							17,168
Total consideration							$	54,902

Goodwill							$	8,473

(1)Adjustments to Quantum's total loans include the elimination of Quantum's existing allowance for loan losses of $5,972, the recognition of an ACL at close on PCD loans of $369, and adjustments to reflect the estimated credit fair value mark on the non-PCD loan portfolio of $2,932 and the estimated interest rate fair value adjustment on the loan portfolio as a whole (non-PCD and PCD) of $7,878.

(2)As indicated in the Current Report on Form 8-K/A filed with the SEC on March 30, 2023, the amount of cash consideration paid at closing differs from the $57.54 per share, or $33,037, reported in the Current Report on Form 8-K filed on February 13, 2023, which announced the closing of the merger. Consistent with the merger agreement, between the execution of the merger agreement and the transaction closing date, Quantum's principal stockholders had the option to withdraw some or all of the amount of cash consideration to eventually be paid at closing in advance of the closing date. The amount of cash consideration paid at closing was reduced by the amount withdrawn during this time period.

Goodwill of $8,473 arising from the merger consisted largely of synergies and the cost saves resulting from the combining of operations of the companies, and is not expected to be deductible for income tax purposes.

HOMETRUST BANCSHARES, INC. AND SUBSIDIARY

Notes to Consolidated Financial Statements

(Dollars in thousands, except per share data)

4. Debt Securities

Debt securities available for sale consist of the following at the dates indicated:


	September 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	15,000	$	—	$	(92)	$	14,908
MBS, residential	101,820		—		(4,469)		97,351
Municipal bonds	3,496		—		(144)		3,352
Corporate bonds	20,000		—		(1,263)		18,737

Total	$	140,316	$	—	$	(5,968)	$	134,348


	June 30, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
U.S. government agencies	$	15,000	$	—	$	(286)	$	14,714
MBS, residential	110,865		—		(3,451)		107,414
Municipal bonds	3,505		—		(117)		3,388
Corporate bonds	27,881		—		(1,471)		26,410

Total	$	157,251	$	—	$	(5,325)	$	151,926

Debt securities available for sale by contractual maturity at September 30, 2023 and June 30, 2023 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