XML 173 R27.htm IDEA: XBRL DOCUMENT v2.4.1.9
Fair Value Of Financial Instruments
 12 Months Ended
Mar. 31, 2015
Notes  
Fair Value Of Financial Instruments

19.   FAIR VALUE OF FINANCIAL INSTRUMENTS

 

The following disclosure of the estimated fair value of financial instruments is made in accordance with applicable accounting standards. The Company, using available market information and appropriate valuation methodologies, has determined the estimated fair value amounts. However, considerable judgment is necessary to interpret market data in the development of the estimates of fair value. Accordingly, the estimates presented herein are not necessarily indicative of the amounts the Company could realize in the future. The use of different market assumptions and/or estimation methodologies may have a material effect on the estimated fair value amounts.

 

The estimated fair value of financial instruments is as follows at the dates indicated (in thousands):

 

 

 

 

 

Quoted prices in active markets for identical assets

 

Other observable inputs

 

Significant unobservable inputs

 

 

 

March 31, 2015

Carry Value

 

(Level 1)

  

(Level 2)

  

(Level 3)

 

 

Fair Value

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

58,659

 

$

58,659

 

$

-

 

$

-

 

$

58,659

Certificates of deposit held for investment

 

25,969

 

 

-

 

 

26,256

 

 

-

 

 

26,256

Investment securities available for sale

 

15,751

 

 

-

 

 

13,939

 

 

1,812

 

 

15,751

Mortgage-backed securities held to maturity

 

86

 

 

-

 

 

88

 

 

-

 

 

88

Mortgage-backed securities available for sale

 

96,712

 

 

-

 

 

96,712

 

 

-

 

 

96,712

Loans receivable, net

 

569,010

 

 

-

 

 

-

 

 

548,908

 

 

548,908

Loans held for sale

 

778

 

 

-

 

 

778

 

 

-

 

 

778

Federal Home Loan Bank stock

 

5,924

 

 

-

 

 

5,924

 

 

-

 

 

5,924

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand – savings deposits

 

582,011

 

 

582,011

 

 

-

 

 

-

 

 

582,011

Time deposits

 

138,839

 

 

-

 

 

138,744

 

 

-

 

 

138,744

Junior subordinated debentures

 

22,681

 

 

-

 

 

-

 

 

9,769

 

 

9,769

 

 

 

    

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

March 31, 2014

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash

$

68,577

 

$

68,577

 

$

-

 

$

-

 

$

68,577

Certificates of deposit held for investment

 

36,925

 

 

-

 

 

37,176

 

 

-

 

 

37,176

Investment securities available for sale

 

23,394

 

 

-

 

 

21,491

 

 

1,903

 

 

23,394

Mortgage-backed securities held to maturity

 

101

 

 

-

 

 

104

 

 

-

 

 

104

Mortgage-backed securities available for sale

 

78,575

 

 

-

 

 

78,575

 

 

-

 

 

78,575

Loans receivable, net

 

520,937

 

 

-

 

 

-

 

 

480,454

 

 

480,454

Loans held for sale

 

1,024

 

 

-

 

 

1,024

 

 

-

 

 

1,024

Federal Home Loan Bank stock

 

6,744

 

 

-

 

 

6,744

 

 

-

 

 

6,744

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Demand – savings deposits

$

527,813

 

 

527,813

 

 

-

 

 

-

 

 

527,813

Time deposits

 

162,253

 

 

-

 

 

162,020

 

 

-

 

 

162,020

Junior subordinated debentures

 

22,681

 

 

-

 

 

-

 

 

11,233

 

 

11,233

 

Fair value estimates were based on existing financial instruments without attempting to estimate the value of anticipated future business. The fair value was not estimated for assets and liabilities that were not considered financial instruments.

 

Fair value estimates, methods and assumptions are set forth below.

 

Cash – Fair value approximates the carrying amount.

 

Certificates of Deposit held for investment – The fair value of certificates of deposit with stated maturity was based on the discounted value of contractual cash flows. The discount rate was estimated using rates currently available in the local market.

 

Investments and Mortgage-Backed Securities – Fair values were based on quoted market rates and dealer quotes. The fair value of the trust preferred investment was determined using a discounted cash flow method (see also Note 18 – Fair Value Measurement).

 

Loans Receivable and Loans Held for Sale – Loans were priced using a discounted cash flow analysis. The fair value of loans held for sale was based on the loans carrying value as the agreements to sell these loans are short term fixed rate commitments and no material difference between the carrying value is likely.

 

Federal Home Loan Bank stock – The carrying amount approximates the estimated fair value of this investment.

 

Deposits – The fair value of deposits with no stated maturity such as non-interest-bearing demand deposits, interest checking, money market and savings accounts was equal to the amount payable on demand. The fair value of time deposits with stated maturity was based on the discounted value of contractual cash flows. The discount rate was estimated using rates currently available in the local market.

 

Junior Subordinated Debentures – The fair value of the Debentures was based on the discounted cash flow method. Management believes that the discount rate utilized is indicative of those that would be used by market participants for similar types of debentures.

 

Off-Balance Sheet Financial Instruments – The estimated fair value of loan commitments approximates fees recorded associated with such commitments. Since the majority of the Company’s off-balance-sheet instruments consist of non-fee producing, variable rate commitments, the Company has determined they do not have a distinguishable fair value.