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Mortgage-backed Securities

12 Months Ended

Mar. 31, 2015

4. MORTGAGE-BACKED SECURITIES

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

March 31, 2015		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value

Mortgage-backed securities ⁽¹⁾	$	86	$	2	$	-	$	88

March 31, 2014
Mortgage-backed securities ⁽¹⁾	$	101	$	3	$	-	$	104

⁽¹⁾ Comprised of Federal National Mortgage Association (“FNMA”) and FHLMC issued securities.

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

March 31, 2015		Amortized Cost		Estimated Fair Value

Due in one year or less	$	-	$	-
Due after one year through five years		-		-
Due after five years through ten years		74		75
Due after ten years		12		13
Total	$	86	$	88

Mortgage-backed securities held to maturity with an amortized cost of $27,000 and $36,000 and a fair value of $27,000 and $37,000 at March 31, 2015 and 2014, respectively, were pledged as collateral for governmental public funds.

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

March 31, 2015		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value

Real estate mortgage investment conduits ⁽¹⁾	$	22,455	$	255	$	(1	)	$	22,709
Mortgage-backed securities ⁽²⁾		67,568		1,006		(60	)		68,514
Other mortgage-backed securities ⁽³⁾		5,359		142		(12	)		5,489
Total	$	95,382	$	1,403	$	(73	)	$	96,712

March 31, 2014		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Real estate mortgage investment conduits ⁽¹⁾	$	7,218	$	9	$	(77	)	$	7,150
Mortgage-backed securities ⁽²⁾		65,858		102		(547	)		65,413
Other mortgage-backed securities ⁽³⁾		6,007		18		(13	)		6,012
Total	$	79,083	$	129	$	(637	)	$	78,575

⁽¹⁾ Comprised of FHLMC and FNMA issued securities.
⁽²⁾ Comprised of FHLMC, FNMA and Ginnie Mae issued securities.
⁽³⁾ Comprised of U.S. Small Business Administration (“SBA”) issued securities and commercial real estate secured securities issued by FNMA.

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

March 31, 2015		Amortized Cost		Estimated Fair Value

Due in one year or less	$	-	$	-
Due after one year through five years		2,476		2,535
Due after five years through ten years		5,306		5,378
Due after ten years		87,600		88,799
Total	$	95,382	$	96,712

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

	Less than 12 months					12 months or longer					Total
		Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses

March 31, 2015

Real estate mortgage investment conduits ⁽¹⁾	$	1,323	$	(1	)	$	-	$	-		$	1,323	$	(1	)
Mortgage-backed securities ⁽²⁾		-		-			5,098		(60	)		5,098		(60	)
Other mortgage-backed securities ⁽³⁾		-		-			1,417		(12	)		1,417		(12	)
Total	$	1,323	$	(1	)	$	6,515	$	(72	)	$	7,838	$	(73	)

March 31, 2014

Real estate mortgage investment conduits ⁽⁴⁾	$	4,996	$	(77	)	$	-	$	-		$	4,996	$	(77	)
Mortgage-backed securities ⁽²⁾		49,177		(547	)		-		-			49,177		(547	)
Other mortgage-backed securities ⁽³⁾		1,526		(13	)		-		-			1,526		(13	)
Total	$	55,699	$	(637	)	$	-	$	-		$	55,699	$	(637	)

⁽¹⁾ Comprised of a FHLMC security
⁽²⁾ Comprised of FHLMC and FNMA issued securities
⁽³⁾ Comprised of SBA issued securities
⁽⁴⁾ Comprised of FHLMC, FNMA and Ginnie Mae issued securities.

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 approach 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 held to maturity and available for sale will differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties.

Proceeds from sale of mortgage-backed securities totaled $14.2 million for the year ended March 31, 2015. Gross realized gains on sales of mortgage-backed securities totaled $127,000 for the year ended March 31, 2015. The Company had no sales and no realized gains or losses on mortgage-backed securities for the year ended March 31, 2014 or 2013. Mortgage-backed securities available for sale with an amortized cost of $1.3 million and $1.7 million and a fair value of $1.3 million and $1.7 million at March 31, 2015 and 2014, respectively, were pledged as collateral for government public funds held by the Bank.