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INVESTMENT SECURITIES
 12 Months Ended
Mar. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES
4.
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
  
March 31, 2017
                        
Available for sale:
                        
Municipal securities
  
$
2,936
    
$
-
    
$
(117
)
  
$
2,819
  
Agency securities
    
16,993
      
18
      
(203
)
    
16,808
  
Real estate mortgage investment conduits (1)
    
43,510
      
49
      
(399
)
    
43,160
  
Mortgage-backed securities (1)
    
97,742
      
111
      
(1,242
)
    
96,611
  
Other mortgage-backed securities (2)
    
41,649
      
15
      
(848
)
    
40,816
  
Total available for sale
  
$
202,830
    
$
193
    
$
(2,809
)
  
$
200,214
  
                                 
Held to maturity:
                                
Mortgage-backed securities (3)
  
$
64
    
$
2
    
$
-
    
$
66
  
                                 
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 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 March 31, 2017 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
  
$
16,487
    
$
16,455
    
$
-
    
$
-
  
Due after five years through ten years
    
35,852
      
35,350
      
58
      
59
  
Due after ten years
    
150,491
      
148,409
      
6
      
7
  
Total
  
$
202,830
    
$
200,214
    
$
64
    
$
66
  
 
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
  
March 31, 2017
                                    
                                     
Available for sale:
                                    
Municipal securities
  
$
2,819
    
$
(117
)
  
$
-
    
$
-
    
$
2,819
    
$
(117
)
Agency securities
    
15,785
      
(203
)
    
-
      
-
      
15,785
      
(203
)
Real estate mortgage investment conduits (1)
    
32,221
      
(399
)
    
-
      
-
      
32,221
      
(399
)
Mortgage-backed securities (2)
    
74,388
      
(1,232
)
    
602
      
(10
)
    
74,990
      
(1,242
)
Other mortgage-backed securities (3)
    
36,754
      
(803
)
    
2,840
      
(45
)
    
39,594
      
(848
)
Total available for sale
  
$
161,967
    
$
(2,754
)
  
$
3,442
    
$
(55
)
  
$
165,409
    
$
(2,809
)
                                                 
(1) Comprised of FHLMC and FNMA issued securities.
  
(2) Comprised of FHLMC, FNMA and GNMA issued securities.
  
(3) Comprised of SBA issued and CRE secured securities issued by FNMA.
  
 
             
 
Less than 12 months
  
12 months or longer
  
Total
  
   
Estimated
Fair Value
    
Unrealized
Losses
    
Estimated
Fair Value
    
Unrealized
Losses
    
Estimated
Fair Value
    
Unrealized
Losses
  
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 issued securities.
  
(2) Comprised of FHLMC and FNMA issued securities.
  
(3) Comprised of SBA issued securities.
  
 
At March 31, 2016, the Company's trust preferred securities consisted of a single collateralized debt obligation secured by a pool of trust preferred securities issued by other bank holding companies. The Company held the mezzanine tranche of this security. During the year ended March 31, 2017, the collateralized debt obligation was liquidated and the Company received $1.8 million in proceeds from the liquidation which resulted in a realized gain of $82,000. For the year ended March 31, 2017, the Company recognized OTTI charges of $240,000 on this collateralized debt obligation.
 
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.
 
Gross realized gains on sales of investment securities available for sale totaled $82,000 for the year ended March 31, 2017, which was related to the collateralized debt obligation and the gross realized gain was recorded in other non-interest income in the 2017 consolidated statement of income. The income tax of $29,000 related to these realized gains was recorded in the provision for income taxes in the consolidated statement of income for the year ended March 31, 2017. The Company had no sales and realized no gains or losses on sales of investment securities for the year ended March 31, 2016. Gross realized gains on sales of investment securities available for sale totaled $158,000 for the year ended March 31, 2015 and the gross realized gain was recorded in other non-interest income in the 2015 consolidated statement of income. The income tax of $54,000 related to these realized gains was recorded in the provision for income taxes in the consolidated statement of income for the year ended March 31, 2015.
 
Investment securities available for sale with an amortized cost of $11.1 million and $10.2 million and a fair value of $11.1 million and $10.3 million at March 31, 2017 and 2016, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $20,000 and $23,000 and a fair value of $--20,000 and $24,000 at March 31, 2017 and 2016, respectively, were pledged as collateral for government public funds held by the Bank.