FUNDS HELD FOR CLIENTS

3 Months Ended

Sep. 30, 2024

FUNDS HELD FOR CLIENTS:

Funds held for clients are as follows:


	September 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Demand deposit accounts and other cash equivalents	$	641,643	$	—	$	—	$	641,643
U.S. Treasury and direct obligations of U.S. government agencies	70,221		1,221		(20)		71,422
Corporate bonds	230,102		2,940		(500)		232,542

Other securities	21,424		244		(86)		21,582
	$	963,390	$	4,405	$	(606)	$	967,189


	June 30, 2024
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Demand deposit accounts and other cash equivalents	$	792,622	$	—	$	—	$	792,622
U.S. Treasury and direct obligations of U.S. government agencies	91,378		18		(413)		90,983
Corporate bonds	206,981		123		(1,178)		205,926

Other securities	19,783		9		(187)		19,605
	$	1,110,764	$	150	$	(1,778)	$	1,109,136

Other securities are primarily comprised of municipal obligations.

Proceeds from sales and maturities of investment securities for the three months ended September 30, 2024 and 2023, were approximately $78,135 and $23,652, respectively.

The Company is exposed to interest rate risk as rate volatility will cause fluctuations in the earnings potential of future investments. The Company does not utilize derivative financial instruments to manage interest rate risk.

The Company reviews its investments on an ongoing basis to determine if any allowance for credit loss is warranted due to changes in credit risk or other potential valuation concerns. The Company has no material individual securities that have been in a continuous unrealized loss position greater than twelve months. The Company believes unrealized losses, to the extent they exist, generally result from changes in interest rates rather than credit risk, and therefore does not believe the related investments need to be assessed to determine whether an allowance for the credit loss is warranted. Additionally, the Company believes it will recover its cost basis in the securities with unrealized losses and has the ability to hold the securities until they recover in value and had no intent to sell them at September 30, 2024.

Expected maturities as of September 30, 2024 for client fund assets are as follows:


Due within fiscal year 2025	$	686,358
Due within fiscal year 2026	89,683
Due within fiscal year 2027	112,231
Due within fiscal year 2028	48,595
Due within fiscal year 2029	16,374
Thereafter	13,948
Total	$	967,189

PAYCOR HCM, INC. 10-Q