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Mortgage-backed Securities
 9 Months Ended
Dec. 31, 2013
Notes  
Mortgage-backed Securities

6.      MORTGAGE-BACKED SECURITIES

 

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

 

 

 

 

Amortized

Cost

 

 

Gross Unrealized

Gains

 

 

Gross Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC mortgage-backed securities (1)

$

27

 

$

2

 

$

-

 

$

29

 

FNMA mortgage-backed securities (2)

 

77

 

 

1

 

 

-

 

 

78

 

Total

$

104

 

$

3

 

$

-

 

$

107

 

March 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC mortgage-backed securities

$

31

 

$

3

 

$

-

 

$

34

 

FNMA mortgage-backed securities

 

94

 

 

1

 

 

-

 

 

95

 

Total

$

125

 

$

4

 

$

-

 

$

129

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Federal Home Loan Mortgage Corporation (“FHLMC”)

 

 

 

 

 

 

 

 

 

 

 

 

(2) Federal National Mortgage Association (“FNMA”)

 

 

 

 

 

 

 

 

 

 

 

 

 

The contractual maturities of mortgage-backed securities classified as held to maturity at December 31, 2013 are as follows (in thousands):

 

 

December 31, 2013

 

Amortized

Cost

 

 

Estimated

Fair Value

 

 

 

 

 

 

Due in one year or less

$

1

 

$

1

Due after one year through five years

 

-

 

 

-

Due after five years through ten years

 

83

 

 

84

Due after ten years

 

20

 

 

22

Total

$

104

 

$

107

 

Mortgage-backed securities held to maturity with an amortized cost of $37,000 and $53,000 and a fair value of $38,000 and $55,000 at December 31, 2013 and March 31, 2013, respectively, were pledged as collateral for governmental public funds held by the Company.

 

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

 

December 31, 2013

 

Amortized

Cost

 

 

Gross Unrealized

Gains

 

 

Gross Unrealized

Losses

 

 

Estimated

Fair

Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Real estate mortgage investment conduits

$

174

 

$

4

 

$

-

 

$

178

 

FHLMC mortgage-backed securities

 

10,027

 

 

8

7

 

(143

)

 

9,892

 

FNMA mortgage-backed securities

 

19,581

 

 

19

 

 

(331

)

 

19,269

 

SBA mortgage-backed securities (1)

 

4,072

 

 

13

 

 

(5

)

 

4,080

 

GNMA mortgage-backed securities (2)

 

1,125

 

 

-

 

 

(15

)

 

1,110

 

Total

$

34,979

 

$

44

 

$

(494

)

$

34,529

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1) Small Business Administration (“SBA”)

 

 

 

 

 

 

 

 

 

 

 

 

(2) Ginnie Mae (“GNMA”)

 

 

 

 

 

 

 

 

 

 

 

 

 

The contractual maturities of mortgage-backed securities available for sale at December 31, 2013 are as follows (in thousands):

 

December 31, 2013

 

Amortized

Cost

 

 

Estimated

Fair Value

 

 

 

 

 

 

Due in one year or less

$

26

 

$

27

Due after one year through five years

 

33

 

 

34

Due after five years through ten years

 

8,350

 

 

8,355

Due after ten years

 

26,570

 

 

26,113

Total

$

34,979

 

$

34,529

 

 

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

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

December 31, 2013

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

FHLMC mortgage-backed securities

$

7,414

 

$

(143

)

$

-

 

$

-

 

$

7,414

 

$

(143

)

FNMA mortgage-backed securities

 

14,455

 

 

(331

)

 

-

 

 

-

 

 

14,455

 

 

(331

)

SBA mortgage-backed securities

 

1,318

 

 

(5

)

 

-

 

 

-

 

 

1,318

 

 

(5

)

GNMA mortgage-backed securities

 

1,110

 

 

(15

)

 

-

 

 

-

 

 

1,110

 

 

(15

)

Total

$

24,297

 

$

(494

)

$

-

 

$

-

 

$

24,297

 

$

(494

)

 

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 $710,000 and $416,000 and a fair value of $713,000 and $431,000 at December 31, 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 FHLMC and FNMA securities.