XML 23 R13.htm IDEA: XBRL DOCUMENT
v3.5.0.2

Investment Securities | 3 Months Ended
--- | ---
Jun. 30, 2016
Notes |
Investment Securities | 5. INVESTMENT SECURITIES The amortized cost and approximate fair value of investment securities consisted of the following at the dates indicated (in thousands):
| Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized Losses |  | Estimated Fair Value
June 30, 2016 |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |
Trust preferred | $ | 1,919 |  | $ | - |  | $ | (142 | ) | $ | 1,777
Agency securities |  | 17,008 |  |  | 75 |  |  | - |  |  | 17,083
Real estate mortgage investment conduits (1) |  | 44,357 |  |  | 908 |  |  | - |  |  | 45,265
Mortgage-backed securities (1) |  | 80,517 |  |  | 1,281 |  |  | (15 | ) |  | 81,783
Other mortgage-backed securities (2) |  | 17,519 |  |  | 287 |  |  | (30 | ) |  | 17,776
Total available for sale | $ | 161,320 |  | $ | 2,551 |  | $ | (187 | ) | $ | 163,684
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (3) | $ | 72 |  | $ | 2 |  | $ | - |  | $ | 74
March 31, 2016 |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |
Trust preferred | $ | 1,919 |  | $ | - |  | $ | (111 | ) | $ | 1,808
Agency securities |  | 19,520 |  |  | 63 |  |  | (14 | ) |  | 19,569
Real estate mortgage investment conduits (1) |  | 43,293 |  |  | 632 |  |  | (1 | ) |  | 43,924
Mortgage-backed securities (1) |  | 75,404 |  |  | 980 |  |  | (31 | ) |  | 76,353
Other mortgage-backed securities (2) |  | 8,875 |  |  | 185 |  |  | (24 | ) |  | 9,036
Total available for sale | $ | 149,011 |  | $ | 1,860 |  | $ | (181 | ) | $ | 150,690
Held to maturity: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (3) | $ | 75 |  | $ | 1 |  | $ | - |  | $ | 76
(1) Comprised of Federal Home Loan Mortgage Corporation (“FHLMC”), Federal National Mortgage Association (“FNMA”) and Ginnie Mae (“GNMA”) issued securities.
(2) Comprised of U.S. Small Business Administration (“SBA”) issued securities and commercial real estate (“CRE”) secured securities issued by FNMA.
(3) Comprised of FHLMC and FNMA issued securities.
The contractual maturities of investment securities as of June 30, 2016 are as follows (in thousands):
|  | Available for Sale |  |  | Held to Maturity
|  | Amortized Cost |  |  | Estimated Fair Value |  |  | Amortized Cost |  |  | Estimated Fair Value
Due after one year through five years | $ | 16,483 |  | $ | 16,631 |  | $ | - |  | $ | -
Due after five years through ten years |  | 16,787 |  |  | 17,082 |  |  | 64 |  |  | 65
Due after ten years |  | 128,050 |  |  | 129,971 |  |  | 8 |  |  | 9
Total | $ | 161,320 |  | $ | 163,684 |  | $ | 72 |  | $ | 74
Expected maturities of investment securities may differ from contractual maturities because borrowers may have the right to prepay obligations with or without prepayment penalties. The fair value of temporarily impaired investment 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
|  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses |  |  | Estimated Fair Value |  |  | Unrealized Losses
June 30, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust preferred | $ | - |  | $ | - |  | $ | 1,777 |  | $ | (142) |  | $ | 1,777 |  | $ | (142)
Mortgage-backed securities (1) |  | 3,125 |  |  | (4) |  |  | 772 |  |  | (11) |  |  | 3,897 |  |  | (15)
Other mortgage-backed securities (2) |  | 1,868 |  |  | (11) |  |  | 1,164 |  |  | (19) |  |  | 3,032 |  |  | (30)
Total available for sale | $ | 4,993 |  | $ | (15) |  | $ | 3,713 |  | $ | (172) |  | $ | 8,706 |  | $ | (187)
(1) Comprised of FHLMC and FNMA issued securities. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(2) Comprised of SBA issued securities. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
March 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Trust preferred | $ | - |  | $ | - |  | $ | 1,808 |  | $ | (111) |  | $ | 1,808 |  | $ | (111)
Agency securities |  | 5,508 |  |  | (6) |  |  | 4,991 |  |  | (8) |  |  | 10,499 |  |  | (14)
Real estate mortgage investment conduits (1) |  | 1,636 |  |  | (1) |  |  | - |  |  | - |  |  | 1,636 |  |  | (1)
Mortgage-backed securities (2) |  | 831 |  |  | (10) |  |  | 3,051 |  |  | (21) |  |  | 3,882 |  |  | (31)
Other mortgage-backed securities (3) |  | 1,891 |  |  | (6) |  |  | 1,229 |  |  | (18) |  |  | 3,120 |  |  | (24)
Total available for sale | $ | 9,866 |  | $ | (23) |  | $ | 11,079 |  | $ | (158) |  | $ | 20,945 |  | $ | (181)
(1) Comprised of FHLMC securities.[ACI1] |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(2) Comprised of FHLMC and FNMA issued securities. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
(3) Comprised of SBA issued securities. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
At June 30, 2016, the Company had a single collateralized debt obligation which is secured by a pool of trust preferred securities issued by 15 other bank holding companies. The Company holds the mezzanine tranche of this security. All tranches senior to the mezzanine tranche have been repaid by the issuer. Four of the issuers of trust preferred securities in this pool have defaulted (representing 51% of the remaining collateral, including excess collateral), and one other issuer is currently deferring interest payments (representing 2% of the remaining collateral). The Company has estimated an expected default rate of 44% for its portion of this security. The expected default rate was estimated based primarily on an analysis of the financial condition of the underlying issuers. The Company estimates that a default rate of 74% would trigger additional other than temporary impairment (“OTTI”) of this security. The Company utilized a discount rate of 10% to estimate the fair value of this security. There was no excess subordination on this security. During the three months ended June 30, 2016, the Company determined that there was no additional OTTI charge on this collateralized debt obligation. The Company does not intend to sell this security and it is not more likely than not that the Company will be required to sell the security before the anticipated recovery of the remaining amortized cost basis. To determine the component of gross OTTI related to credit losses, the Company compared the amortized cost basis of the collateralized debt obligation to the present value of the revised expected cash flows, discounted using the current pre-impairment yield. The revised expected cash flow estimates are based primarily on an analysis of default rates, prepayment speeds and third-party analytical reports. Significant judgment of management is required in this analysis that includes, but is not limited to, assumptions regarding the ultimate collectability of principal and interest on the underlying collateral. The unrealized losses on the Company’s investment securities were primarily attributable to increases in market interest rates subsequent to their purchase by the Company. The Company expects the fair value of these securities to recover as the securities approach their maturity dates or sooner if market yields for such securities decline. The Company does not believe that these securities are other than temporarily 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 investment securities in the above tables are considered temporary. The Company had no sales and realized no gains or losses on sales of investment securities for the three months ended June 30, 2016 and 2015. Investment securities available for sale with an amortized cost of $12.7 million and $10.2 million and a fair value of $12.9 million and $10.3 million at June 30, 2016 and March 31, 2016, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $22,000 and $23,000 and a fair value of $23,000 and $24,000 at June 30, 2016 and March 31, 2016, respectively, were pledged as collateral for government public funds held by the Bank.

X
- References No definition available. + Details
Name: | us-gaap_DisclosureTextBlockAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=27724398&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration