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6. Mortgage-backed Securities

3 Months Ended

Jun. 30, 2013

6. MORTGAGE-BACKED SECURITIES

Mortgage-backed securities held to maturity consisted of the following (in thousands):

		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

June 30, 2013
FHLMC mortgage-backed securities	$	30	$	2	$	-	$	32
FNMA mortgage-backed securities		92		1		-		93
Total	$	122	$	3	$	-	$	125
March 31, 2013
FHLMC mortgage-backed securities	$	31	$	3	$	-	$	34
FNMA mortgage-backed securities		94		1		-		95
Total	$	125	$	4	$	-	$	129

The contractual maturities of mortgage-backed securities classified as held to maturity are as follows (in thousands):

June 30, 2013		Amortized Cost		Estimated Fair Value

Due in one year or less	$	-	$	-
Due after one year through five years		2		2
Due after five years through ten years		11		12
Due after ten years		109		111
Total	$	122	$	125

Mortgage-backed securities held to maturity with an amortized cost of $51,000 and $53,000 and a fair value of $53,000 and $55,000 at June 30, 2013 and March 31, 2013, respectively, were pledged as collateral for governmental public funds held by the Bank.

Mortgage-backed securities available for sale consisted of the following (in thousands):

June 30, 2013		Amortized Cost		Gross Unrealized Gains			Gross Unrealized Losses			Estimated Fair Value

Real estate mortgage investment conduits	$	210	$	6		$	-		$	216
FHLMC mortgage-backed securities		2,128		5	7		(92	)		2,041
FNMA mortgage-backed securities		4,048		-			(237	)		3,811
Total	$	6,386	$	11		$	(329	)	$	6,068
March 31, 2013
Real estate mortgage investment conduits	$	230	$	7		$	-		$	237
FHLMC mortgage-backed securities		183		8			-			191
FNMA mortgage-backed securities		3		-			-			3
Total	$	416	$	15		$	-		$	431

The contractual maturities of mortgage-backed securities available for sale are as follows (in thousands):

June 30, 2013		Amortized Cost		Estimated Fair Value

Due in one year or less	$	110	$	115
Due after one year through five years		48		50
Due after five years through ten years		-		-
Due after ten years		6,228		5,903
Total	$	6,386	$	6,068

The fair value of temporarily impaired securities, the amount of unrealized losses and the length of time these unrealized losses existed are as follows (in thousands):

	Less than 12 months					12 months or longer				Total
		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
June 30, 2013

FHLMC mortgage-backed securities	$	1,925	$	(92	)	$	-	$	-	$	1,925	$	(92	)
FNMA mortgage-backed securities		3,811		(237	)		-		-		3,811		(237	)
Total	$	5,736	$	(329	)	$	-	$	-	$	5,736	$	(329	)

There were no mortgage-backed securities that were temporarily impaired at March 31, 2013.

The unrealized losses on the above mortgage-backed securities were primarily attributable to increases in market interest rates subsequent to their purchase by the Company. The Company expects the fair value of the mortgage-backed securities to recover as the mortgage-backed securities approaches their maturity dates or sooner if market yields for such securities decline. The Company does not believe that the mortgage-backed securities are impaired because of their credit quality or related to any issuer or industry specific event. Based on management’s evaluation and intent, the unrealized losses related to the mortgage-backed securities in this table are considered temporary.

Expected maturities of mortgage-backed securities will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

Mortgage-backed securities available for sale with an amortized cost of $322,000 and $416,000 and a fair value of $333,000 and $431,000 at June 30, 2013 and March 31, 2013, respectively, were pledged as collateral for government public funds held by the Bank. The real estate mortgage investment conduits consist of Federal Home Loan Mortgage Corporation (“FHLMC”) and Federal National Mortgage Association (“FNMA”) securities.