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INVESTMENT SECURITIES | 9 Months Ended
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Dec. 31, 2016
Investments, Debt and Equity Securities [Abstract] |
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 |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 2,951 |  |  | $ | - |  |  | $ | (141 | ) |  | $ | 2,810 |
Agency securities |  |  | 16,992 |  |  |  | 17 |  |  |  | (212 | ) |  |  | 16,797 |
Real estate mortgage investment conduits (1) |  |  | 45,505 |  |  |  | 64 |  |  |  | (420 | ) |  |  | 45,149 |
Residential mortgage-backed securities (1) |  |  | 102,193 |  |  |  | 82 |  |  |  | (1,312 | ) |  |  | 100,963 |
Other mortgage-backed securities (2) |  |  | 42,607 |  |  |  | 18 |  |  |  | (1,073 | ) |  |  | 41,552 |
Total available for sale |  | $ | 210,248 |  |  | $ | 181 |  |  | $ | (3,158 | ) |  | $ | 207,271 |
Held to maturity: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities (3) |  | $ | 67 |  |  | $ | 1 |  |  | $ | - |  |  | $ | 68 |
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 |
Residential 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: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential 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 FNMA and FHLMC issued securities. |
The contractual maturities of investment securities as of December 31, 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 |  | $ | 16,486 |  |  | $ | 16,433 |  |  | $ | - |  |  | $ | - |
Due after five years through ten years |  |  | 34,178 |  |  |  | 33,578 |  |  |  | 60 |  |  |  | 61 |
Due after ten years |  |  | 159,584 |  |  |  | 157,260 |  |  |  | 7 |  |  |  | 7 |
Total |  | $ | 210,248 |  |  | $ | 207,271 |  |  | $ | 67 |  |  | $ | 68 |
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 |
December 31, 2016 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Available for sale: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Municipal securities |  | $ | 2,810 |  |  | $ | (141 | ) |  | $ | - |  |  | $ | - |  |  | $ | 2,810 |  |  | $ | (141 | )
Agency securities |  |  | 15,774 |  |  |  | (212 | ) |  |  | - |  |  |  | - |  |  |  | 15,774 |  |  |  | (212 | )
Real estate mortgage investment conduits (1) |  |  | 33,074 |  |  |  | (420 | ) |  |  | - |  |  |  | - |  |  |  | 33,074 |  |  |  | (420 | )
Residential mortgage-backed securities (1) |  |  | 82,188 |  |  |  | (1,297 | ) |  |  | 651 |  |  |  | (15 | ) |  |  | 82,839 |  |  |  | (1,312 | )
Other mortgage-backed securities (2) |  |  | 36,760 |  |  |  | (1,029 | ) |  |  | 2,873 |  |  |  | (44 | ) |  |  | 39,633 |  |  |  | (1,073 | )
Total available for sale |  | $ | 170,606 |  |  | $ | (3,099 | ) |  | $ | 3,524 |  |  | $ | (59 | ) |  | $ | 174,130 |  |  | $ | (3,158 | )
(1) Comprised of FHLMC, FNMA and GNMA issued securities. |
(2) Comprised of SBA and CRE issued securities. |
| 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 | )
Residential 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 a FHLMC security. |
(2) Comprised of FHLMC and FNMA issued securities. |
(3) Comprised of SBA issued securities. |
For the three and nine months ended December 31, 2016, the Company recognized other than temporary impairment ("OTTI") charges of $108,000 and $240,000, respectively, on a collateralized debt obligation secured by a pool of trust preferred securities issued by other bank holding companies. In September 2016, the Company was notified that this collateralized debt obligation will be liquidated in accordance with provisions contained within the collateralized debt obligation indenture agreement. Management concluded that the collateralized debt obligation was other than temporarily impaired based upon the liquidation notice and has recorded the OTTI charges through other non-interest income. As of December 31, 2016, the collateralized debt obligation was reclassified from investment securities available for sale to other assets on the consolidated balance sheets. As of December 31, 2016, the collateralized debt obligation had been liquidated and proceeds from the liquidation were distributed on January 25, 2017. The unrealized losses on the Company's investment securities at December 31, 2016 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 available for sale for the three and nine months ended December 31, 2016 and 2015. Investment securities available for sale with an amortized cost of $11.6 million and $10.2 million and a fair value of $11.5 million and $10.3 million at December 31, 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 $20,000 and $23,000 and a fair value of $21,000 and $24,000 at December 31, 2016 and March 31, 2016, respectively, were pledged as collateral for government public funds held by the Bank.

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