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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

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

For the quarterly period ended September 30, 2024

OR

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

For the transition period from _______ to _______

PIONEER BANCORP, INC.

(Exact Name of Company as Specified in its Charter)

​

Maryland

001-38991

83-4274253

(State of Other Jurisdiction of Incorporation)

(Commission File No.)

(I.R.S. Employer Identification No.)

​

652 Albany Shaker Road, Albany, New York 12211

(Address of Principal Executive Office) (Zip Code)

(518) 730-3025

(Issuer’s Telephone Number including area code)

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 $0.01

 

PBFS

 

The Nasdaq Stock Market, LLC

​

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 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 (Section 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 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   ☒

As of November 8, 2024 there were 25,973,904 shares outstanding of the registrant’s common stock.

​

​

​

​

PIONEER BANCORP, INC.

INDEX

​

​

PART I - FINANCIAL INFORMATION

3

Item 1 – Consolidated Financial Statements-unaudited

3

Consolidated Statements of Condition

3

Consolidated Statements of Operations

4

Consolidated Statements of Comprehensive Income

5

Consolidated Statements of Changes in Shareholders’ Equity

6

Consolidated Statements of Cash Flows

7

Notes to Unaudited Consolidated Financial Statements

8

Item 2 - Management’s Discussion and Analysis of Financial Condition and Results of Operations

37

Item 3 – Quantitative and Qualitative Disclosures About Market Risk

54

Item 4 – Controls and Procedures

54

PART II – OTHER INFORMATION

55

Item 1 – Legal Proceedings

55

Item 1A – Risk Factors

55

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

55

Item 3 – Defaults Upon Senior Securities

55

Item 4 – Mine Safety Disclosures

55

Item 5 – Other Information

55

Item 6 – Exhibits

56

​

​

​

​

2

PART I - FINANCIAL INFORMATION

Item 1 – Consolidated Financial Statements

PIONEER BANCORP, INC.

CONSOLIDATED STATEMENTS OF CONDITION (unaudited)

(in thousands, except share and per share amounts)

​

​

​

​

​

​

​

​

​

    

September 30, 

    

June 30, 

​

​

2024

​

2024

Assets

 

​

  

 

​

  

Cash and due from banks

​

$

78,097

​

$

36,937

Federal funds sold

​

 

2,411

​

 

13,638

Interest-earning deposits with banks

​

 

144,466

​

 

114,615

Cash and cash equivalents

​

 

224,974

​

 

165,190

Securities available for sale, at fair value

​

 

262,533

​

 

257,409

Securities held to maturity, net of allowance for credit losses of $216 at September 30, 2024 and $262 at June 30, 2024 (fair value of $22,863 at September 30, 2024; and $22,437 at June 30, 2024)

​

 

24,589

​

 

25,090

Federal Reserve Bank of New York and Federal Home Loan Bank of New York stock

​

 

3,646

​

 

3,546

Loans receivable

​

​

1,420,963

​

​

1,365,870

Allowance for credit losses

​

​

(21,238)

​

​

(21,801)

Net loans receivable

​

 

1,399,725

​

 

1,344,069

Accrued interest receivable

​

 

7,667

​

 

7,559

Premises and equipment, net

​

 

39,718

​

 

40,105

Bank-owned life insurance

​

 

15,972

​

 

16,009

Goodwill

​

 

10,879

​

 

10,879

Other intangible assets, net

​

 

2,828

​

 

2,951

Other assets

​

 

22,071

​

 

22,597

Total assets

​

$

2,014,602

​

$

1,895,404

​

​

​

​

​

​

​

Liabilities and Shareholders’ Equity

​

 

  

​

 

  

Liabilities

​

 

  

​

 

  

Deposits:

​

 

  

​

 

  

Non-interest bearing deposits

​

$

537,933

​

$

445,328

Interest bearing deposits

​

 

1,137,347

​

 

1,104,924

Total deposits

​

 

1,675,280

​

 

1,550,252

Mortgagors’ escrow deposits

​

 

3,854

​

 

9,701

Other liabilities

​

 

31,667

​

 

38,923

Total liabilities

​

 

1,710,801

​

 

1,598,876

​

​

​

​

​

​

​

Commitments and contingent liabilities – See Note 9

​

​

​

​

​

​

​

​

​

​

​

​

​

Shareholders’ Equity

​

 

  

​

 

  

Preferred stock ($0.01 par value, 5,000,000 shares authorized, no shares issued or outstanding as of September 30, 2024 and June 30, 2024)

​

​

—

​

​

—

Common stock ($0.01 par value, 75,000,000 shares authorized, 26,146,904 and 26,261,293 shares issued and outstanding as of September 30, 2024 and June 30, 2024, respectively)

​

​

261

​

​

263

Additional paid in capital

​

​

113,795

​

​

113,484

Retained earnings

​

 

192,826

​

 

187,731

Unallocated common stock of Employee Stock Ownership Plan (“ESOP”)

​

 

(9,721)

​

 

(9,892)

Accumulated other comprehensive income

​

 

6,640

​

 

4,942

Total shareholders’ equity

​

 

303,801

​

 

296,528

Total liabilities and shareholders’ equity

​

$

2,014,602

​

$

1,895,404

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

See accompanying notes to unaudited consolidated financial statements.

3

PIONEER BANCORP, INC.

CONSOLIDATED STATEMENTS OF OPERATIONS (unaudited)

(in thousands, except share and per share amounts)

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

​

September 30, 

​

    

2024

    

2023

Interest and dividend income:

 

​

  

 

​

  

Loans

​

$

20,930

​

$

16,533

Securities

​

 

2,165

​

 

2,568

Interest-earning deposits with banks and other

​

 

1,284

​

 

1,055

Total interest and dividend income

​

 

24,379

​

 

20,156

​

​

​

​

​

​

​

Interest expense:

​

 

  

​

 

  

Deposits

​

 

6,270

​

 

3,954

Borrowings and other

​

 

212

​

 

312

Total interest expense

​

 

6,482

​

 

4,266

Net interest income

​

 

17,897

​

 

15,890

Provision for credit losses

​

 

(870)

​

 

750

Net interest income after provision for credit losses

​

 

18,767

​

 

15,140

​

​

​

​

​

​

​

Noninterest income:

​

 

  

​

 

  

Bank fees and service charges

​

 

1,466

​

 

1,446

Insurance and wealth management services

​

 

2,171

​

 

1,981

Net gain on equity securities

​

 

—

​

 

80

Net gain on securities available for sale transactions

​

​

165

​

​

—

Other

​

 

316

​

 

67

Total noninterest income

​

 

4,118

​

 

3,574

​

​

​

​

​

​

​

Noninterest expense:

​

 

  

​

 

  

Salaries and employee benefits

​

 

7,666

​

 

6,923

Net occupancy and equipment

​

 

1,833

​

 

1,831

Data processing

​

 

981

​

 

1,189

Advertising and marketing

​

 

224

​

 

141

Insurance premiums

​

​

248

​

​

239

Federal Deposit Insurance Corporation insurance premiums

​

 

263

​

 

262

Professional fees

​

​

1,953

​

​

2,587

Other

​

 

1,521

​

 

1,233

Total noninterest expense

​

 

14,689

​

 

14,405

Income before income taxes

​

 

8,196

​

 

4,309

Income tax expense

​

 

1,888

​

 

890

Net income

​

$

6,308

​

$

3,419

​

​

​

​

​

​

​

Net earnings per common share:

​

​

​

​

​

​

Basic

​

$

0.25

​

$

0.14

Diluted

​

$

0.25

​

$

0.14

​

​

​

​

​

​

​

Weighted average shares outstanding – basic

​

​

25,081,864

​

​

25,194,841

Weighted average shares outstanding – diluted

​

​

25,150,650

​

​

25,194,841

​

​

​

​

See accompanying notes to unaudited consolidated financial statements.

4

PIONEER BANCORP, INC.

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited)

(in thousands)

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

​

September 30, 

​

    

2024

    

2023

​

​

​

​

​

​

Net income

​

$

6,308

​

$

3,419

​

​

​

​

​

​

​

Other comprehensive income:

​

 

  

​

 

  

Unrealized gains on securities:

​

 

  

​

 

  

Unrealized holding gains arising during the period

​

 

2,465

​

 

1,391

Reclassification adjustment for gains included in net income

​

 

(165)

​

 

—

​

​

 

2,300

​

 

1,391

Tax expense

​

 

602

​

 

363

​

​

 

1,698

​

 

1,028

Defined benefit plan:

​

 

  

​

 

  

Change in funded status of defined benefit plans

​

 

—

​

 

—

Reclassification adjustment for amortization of net actuarial gain

​

 

—

​

 

—

​

​

 

—

​

 

—

Tax expense

​

 

—

​

 

—

​

​

 

—

​

 

—

Total other comprehensive income

​

 

1,698

​

 

1,028

Comprehensive income

​

$

8,006

​

$

4,447

​

​

​

See accompanying notes to unaudited consolidated financial statements.

5

PIONEER BANCORP, INC.

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (unaudited)

(in thousands, except share amounts)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Additional

​

​

​

Unallocated

​

Accumulated Other

​

Total

​

​

Common Stock

​

Paid-in

​

Retained

​

Common

​

Comprehensive

​

Shareholders’

​

    

Shares

​

Amount

    

Capital

    

Earnings

    

Stock of ESOP

    

Loss

    

Equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance as of July 1, 2023

​

​

25,977,679

​

$

260

​

$

113,543

​

$

173,038

​

​

(10,573)

​

$

(9,568)

​

$

266,700

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Cumulative effect of change in accounting principle - Current Expected Credit Losses (1)

​

​

—

​

​

—

​

​

—

​

​

507

​

​

—

​

​

—

​

​

507

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

—

​

​

—

​

​

—

​

​

3,419

​

​

—

​

​

—

​

​

3,419

Other comprehensive income

​

​

—

​

​

—

​

​

—

​

 

—

​

 

—

​

 

1,028

​

 

1,028

ESOP shares committed to be released (12,729 shares)

​

​

—

​

​

—

​

​

(52)

​

​

—

​

​

169

​

​

—

​

​

117

Balance as of September 30, 2023

​

​

25,977,679

​

$

260

​

$

113,491

​

$

176,964

​

$

(10,404)

​

$

(8,540)

​

$

271,771

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Additional

​

​

​

Unallocated

​

Accumulated Other

​

Total

​

​

Common Stock

​

Paid-in

​

Retained

​

Common

​

Comprehensive

​

Shareholders’

​

​

Shares

​

Amount

    

Capital

    

Earnings

    

Stock of ESOP

    

Income

    

Equity

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Balance as of July 1, 2024

​

​

26,261,293

​

$

263

​

$

113,484

​

$

187,731

​

$

(9,892)

​

$

4,942

​

$

296,528

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Net income

​

​

—

​

​

—

​

​

—

​

​

6,308

​

​

—

​

​

—

​

​

6,308

Other comprehensive income

​

​

—

​

​

—

​

​

—

​

 

—

​

 

—

​

 

1,698

​

 

1,698

ESOP shares committed to be released (12,729 shares)

​

​

—

​

​

—

​

​

(32)

​

​

—

​

​

171

​

​

—

​

​

139

Stock-based compensation expense

​

​

—

​

​

—

​

​

343

​

​

—

​

​

—

​

​

—

​

​

343

Repurchases of common stock

​

​

(114,389)

​

​

(2)

​

​

—

​

​

(1,213)

​

​

—

​

​

—

​

​

(1,215)

Balance as of September 30, 2024

​

​

26,146,904

​

$

261

​

$

113,795

​

$

192,826

​

$

(9,721)

​

$

6,640

​

$

303,801

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

(1)Adoption of Accounting Standard Update 2016-13.

​

See accompanying notes to unaudited consolidated financial statements.

6

PIONEER BANCORP, INC.

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited)

(in thousands)

​

​

​

​

​

​

​

​

​

​

For the Three Months Ended

​

​

September 30, 

​

    

2024

    

2023

​

​

​

​

​

​

Cash flows from operating activities:

 

​

  

 

​

  

Net income

​

$

6,308

​

$

3,419

Adjustments to reconcile net income to net cash provided by operating activities:

​

 

  

​

 

  

Depreciation and amortization

​

 

629

​

 

671

Provision for credit losses

​

 

(870)

​

 

750

Net accretion on securities

​

 

(582)

​

 

(370)

ESOP compensation

​

​

138

​

​

117

Loss on bank-owned life insurance

​

 

37

​

 

56

Net gain on sale or write-down of other real estate owned

​

 

(35)

​

 

—

Proceeds from sale of loans

​

 

2,823

​

 

—

Net gain on sale of loans

​

 

(29)

​

 

—

Loss on sale, disposal or write-down of premise and equipment, net

​

​

3

​

​

—

Net gain on equity securities

​

 

—

​

 

(80)

Net gain on securities available for sale transactions

​

​

(165)

​

​

—

Stock-based compensation expense

​

​

343

​

​

—

Deferred tax expense

​

 

834

​

 

37

(Increase) decrease in accrued interest receivable

​

 

(108)

​

 

70

Increase in other assets

​

 

(1,062)

​

 

(156)

(Decrease) increase in other liabilities

​

 

(6,356)

​

 

7,920

Changes in operating leases

​

​

3

​

​

8

Net cash provided by operating activities

​

 

1,911

​

 

12,442

​

​

​

​

​

​

​

Cash flows from investing activities:

​

 

  

​

 

  

Proceeds from maturities, paydowns and calls of securities available for sale

​

 

34,745

​

 

45,077

Proceeds from sales of securities available for sale

​

 

350

​

 

—

Purchases of securities available for sale

​

 

(37,174)

​

 

(23,924)

Proceeds from maturities and paydowns of securities held to maturity

​

 

2,343

​

 

1,617

Purchases of securities held to maturity

​

 

(1,796)

​

 

(1,576)

Net purchases of FHLBNY and FRBNY stock

​

 

(100)

​

 

(38)

Net increase in loans receivable

​

 

(57,753)

​

 

(57,774)

Purchases of premises and equipment

​

 

(120)

​

 

(373)

Proceeds from sale of other real estate owned

​

 

188

​

 

—

Cash paid for acquisitions

​

​

—

​

​

(1,980)

Net cash used in investing activities

​

 

(59,317)

​

 

(38,971)

​

​

​

​

​

​

​

Cash flows from financing activities:

​

 

  

​

 

  

Net increase in deposits

​

 

125,028

​

 

96,984

Net decreases in mortgagors’ escrow deposits

​

 

(5,847)

​

 

(4,364)

Payments on acquisition contingent consideration

​

​

(750)

​

​

—

Repurchase of common stock

​

​

(1,215)

​

​

—

Repayment of finance lease liability

​

​

(26)

​

​

(25)

Net cash provided by financing activities

​

 

117,190

​

 

92,595

​

​

​

​

​

​

​

Net increase in cash and cash equivalents

​

 

59,784

​

 

66,066

Cash and cash equivalents at beginning of period

​

 

165,190

​

 

150,478

Cash and cash equivalents at end of period

​

$

224,974

​

$

216,544

​

​

​

​

​

​

​

Supplemental disclosure of cash flow information:

​

 

​

​

 

  

Cash paid during the period for:

​

 

  

​

 

  

Interest

​

$

6,503

​

$

4,280

Income taxes

​

$

1,000

​

$

1,000

Non-cash investing and financing activity:

​

 

​

​

 

  

Acquisition contingent consideration payable

​

$

—

​

$

1,499

​

​

​

See accompanying notes to unaudited consolidated financial statements.

7

​

PIONEER BANCORP, INC.

NOTES TO UNAUDITED CONSOLIDATED FINANCIAL STATEMENTS

September 30, 2024

1.NATURE OF OPERATIONS

Pioneer Bancorp, Inc. (the “Company”) is a mid-tier stock holding company whose wholly owned subsidiary is Pioneer Bank, National Association (the “Bank”). The Bank’s wholly owned subsidiaries are Pioneer Commercial Bank, Pioneer Insurance Agency, Inc. and Pioneer Financial Services, Inc. On September 16, 2024, the Office of the Comptroller of the Currency (the “OCC”) approved the merger of Pioneer Commercial Bank with and into the Bank with the Bank as the resulting entity (the “Commercial Bank Merger”). The Commercial Bank Merger closed on October 1, 2024. Following the completion of the Commercial Bank Merger, the Bank now directly offers full municipal deposit banking services which were previously provided through Pioneer Commercial Bank.

The Company provides diversified financial services through the Bank and its subsidiaries, with 23 offices in the Capital Region of New York State. The Company, through its subsidiaries, offers a broad array of deposit, lending, and other financial services to individuals, businesses, and municipalities.

The interim financial data as of September 30, 2024 and for the three months ended September 30, 2024 and 2023, respectively, is unaudited and reflects all normal recurring adjustments that are, in the opinion of management, necessary for a fair presentation of the results for the interim periods presented in conformance with accounting principles generally accepted in the United States of America (“GAAP”). On October 18, 2024, the Company announced it would change its fiscal year end from June 30 to December 31 of each calendar year. The results of operations for the three months ended September 30, 2024 are not necessarily indicative of the results to be achieved for the remainder of the six month transition period ending December 31, 2024 or any other period.

These unaudited interim consolidated financial statements should be read in conjunction with the Company’s Annual Report on Form 10-K, for the year ended June 30, 2024.

2.SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Principles of Consolidation

The consolidated financial statements include the accounts of the Company, the Bank, and the Bank’s wholly owned subsidiaries. All significant intercompany accounts and transactions have been eliminated in consolidation.

Use of Estimates

The preparation of consolidated financial statements in conformity with GAAP requires management to make estimates and assumptions that affect the reported amount of assets and liabilities and disclosure of contingent assets and liabilities at the date of the consolidated financial statements and the reported amounts of revenues and expenses during the reporting period. Actual results could differ substantially from those estimates. The allowance for credit losses, valuation of securities and other financial instruments, the funded status and expense of employee benefit plans, legal proceedings and other contingent liabilities, and the realizability of deferred tax assets are particularly subject to change.

Reclassifications

Amounts in the prior period’s consolidated financial statements are reclassified whenever necessary to conform to the current period’s presentation.

​

8

Impact of Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board (the “FASB”) issued Accounting Standards Update (“ASU”) No. 2023-09 – Income Taxes (Topic 740) – Improvements to Income Tax Disclosures, to provide more transparency about income tax information through improvements to income tax disclosures. Specifically, the update requires enhancements to the rate reconciliation, including disclosure of specific categories and additional information for reconciling items meeting a quantitative threshold, and greater disaggregation of income tax disclosures related to income taxes paid. The amendments in this update are effective for fiscal years beginning after December 15, 2024 and early adoption is permitted. The Company does not expect this new standard will have a material impact on the consolidated financial statements.

In November 2023, the FASB issued ASU No. 2023-07 – Segment Reporting (Topic 280) – Improvements to Reportable Segment Disclosures, to improve the reportable segment disclosures by requiring disclosure of incremental segment information on an annual and interim basis. In addition, the amendments will enhance interim disclosure requirements, clarify circumstances in which an entity can disclose multiple segment measures of profit or loss, provide new segment disclosure requirements for entities with a single reportable segment and contain other disclosure requirements.  The ASU does not change how a public entity identifies its operating segments or determines its reportable segments, or applies the quantitative thresholds to determine its reportable segments. The amendments in this ASU are effective for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption is permitted.  The Company does not expect this new standard will have a material impact on the consolidated financial statements.

​

3.ACQUISITIONS

On July 13, 2023, the Company, through its subsidiary, Pioneer Financial Services, Inc., completed the acquisition of certain assets of Hudson Financial LLC, a company engaged in the wealth management services business in the Hudson Valley Region of New York. The Company paid an aggregate of $2.0 million in cash and recorded $1.5 million in contingent consideration payable to acquire the assets and recorded a $1.4 million customer list intangible asset and goodwill in the amount of $2.1 million in conjunction with the acquisitions. The goodwill from the acquisition is expected to be deductible for tax purposes. During the three months ended September 30, 2024, contingent consideration of $750,000 was paid. The effects of the acquired assets have been included in the consolidated financial statements since the acquisition date. The above referenced acquisition was made to expand the Company’s wealth management services activities.

​

9

4.INVESTMENT SECURITIES

The amortized cost and estimated fair value of securities available for sale are as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

Gross

​

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Estimated

​

    

Cost

    

Gains

    

Losses

    

Fair Value

September 30, 2024

 

​

  

 

​

  

​

​

​

 

​

  

U.S. Treasury

​

$

218,050

​

$

281

​

$

(1,571)

​

$

216,760

Mortgage-backed securities:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Government agency securities

​

​

10,021

​

​

—

​

​

(220)

​

​

9,801

Collateralized mortgage obligations:

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Government agency securities

​

​

4,830

​

​

85

​

​

—

​

​

4,915

Government-sponsored enterprises

​

​

15,350

​

​

—

​

​

(66)

​

​

15,284

Municipal obligations

​

 

15,683

​

 

90

​

 

—

​

 

15,773

Total available for sale securities

​

$

263,934

​

$

456

​

$

(1,857)

​

$

262,533

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

​

​

​

​

​

​

​

​

​

​

​

U.S. Treasury

​

$

247,479

​

$

1

​

$

(3,931)

​

$

243,549

Municipal obligations

​

 

13,419

​

 

5

​

 

(8)

​

 

13,416

Other debt securities

​

​

212

​

​

305

​

​

(73)

​

​

444

Total available for sale securities

​

$

261,110

​

$

311

​

$

(4,012)

​

$

257,409

​

The Company elected to exclude accrued interest receivable from the amortized cost basis of debt securities. Accrued interest receivable on available for sale debt securities totaled $1.3 million and $1.4 million at September 30, 2024 and June 30, 2024, respectively, and is excluded from the estimate of credit losses and reported in accrued interest receivable in the consolidated statement of condition.

There was no allowance for credit losses for securities available for sale as of September 30, 2024 and June 30, 2024.

The amortized cost and estimated fair value of securities held to maturity are as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Gross

​

Gross

​

​

​

​

​

​

​

​

​

​

​

Amortized

​

Unrealized

​

Unrealized

​

Estimated

​

Allowance for

​

Net Carrying

​

    

Cost

    

Gains

    

Losses

    

Fair Value

    

Credit Losses

    

Value

September 30, 2024

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Corporate debt securities

​

$

22,000

​

​

27

​

​

(1,931)

​

$

20,096

​

$

216

​

$

21,784

Municipal obligations

​

​

2,805

​

​

—

​

​

(38)

​

​

2,767

​

​

—

​

​

2,805

Total held to maturity securities

​

$

24,805

​

$

27

​

$

(1,969)

​

$

22,863

​

$

216

​

$

24,589

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

June 30, 2024

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Corporate debt securities

​

$

22,000

​

$

55

​

$

(2,898)

​

$

19,157

​

$

262

​

$

21,738

Municipal obligations

​

​

3,352

​

​

—

​

​

(72)

​

​

3,280

​

​

—

​

​

3,352

Total held to maturity securities

​

$

25,352

​

$

55

​

$

(2,970)

​

$

22,437

​

$

262

​

$

25,090

​

Accrued interest receivable on held to maturity debt securities totaled $232,000 and $220,000 at September 30, 2024 and June 30, 2024, respectively, and is excluded from the estimate of credit losses and is reported in accrued interest receivable in the consolidated statement of condition.

There were no held to maturity securities that were 30 days or more past due or classified as non-accrual as of September 30, 2024 and June 30, 2024.

10

The following tables present the activity in the allowance for credit losses on securities held to maturity (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

For the Three Months Ended September 30, 2024

​

​

Beginning

​

​

​

​

​

​

​

Ending

​

    

Balance

    

Provisions

    

Charge-offs

    

Recoveries

    

Balance

Corporate debt securities

​

$

262

​

$

(46)

​

$

—

​

$

—

​

$

216

Municipal obligations

​

​

—

​

​

—

​

​

—

​

​

—

​

​

—

Total allowance for credit losses on securities held to maturity

​

$

262

​

$

(46)

​

$

—

​

$

—

​

$

216

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

 

For the Three Months Ended September 30, 2023

​

​

Beginning

 

​

​

​

​

​

​

​

​

Ending

​

    

Balance

    

Provisions

    

Charge-offs

    

Recoveries

    

Balance

Corporate debt securities

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

Municipal obligations

​

 

—

​

 

—

​

 

—

​

 

—

​

 

—

Total allowance for credit losses on securities held to maturity

​

$

—

​

$

—

​

$

—

​

$

—

​

$

—

​

The estimated fair value and gross unrealized losses aggregated by security category and length of time such securities have been in a continuous unrealized loss position, is summarized as follows (dollars in thousands):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

September 30, 2024

​

​

Less than 12 Months

​

12 Months or Longer

​

Total

​