XML 24 R14.htm IDEA: XBRL DOCUMENT v3.19.2
INVESTMENT SECURITIES
 3 Months Ended
Jun. 30, 2019
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
June 30, 2019
                      
Available for sale:
                      
Municipal securities
$
8,846
  
$
172
  
$
(4
)
$
9,014
Agency securities
  
9,428
    
89
    
(47
)
  
9,470
Real estate mortgage investment conduits (1)
  
38,598
    
116
    
(124
)
  
38,590
Residential mortgage-backed securities (1)
  
73,736
    
84
    
(718
)
  
73,102
Other mortgage-backed securities (2)
  
40,799
    
114
    
(327
)
  
40,586
Total available for sale
$
171,407
  
$
575
  
$
(1,220
)
$
170,762
                       
Held to maturity:
                      
Residential mortgage-backed securities (3)
$
33
  
$
-
  
$
-
  
$
33
                       
March 31, 2019
                      
Available for sale:
                      
Municipal securities
$
8,885
  
$
30
  
$
(34
)
$
8,881
Agency securities
  
12,426
    
22
    
(107
)
  
12,341
Real estate mortgage investment conduits (1)
  
40,835
    
-
    
(673
)
  
40,162
Residential mortgage-backed securities (1)
  
77,402
    
7
    
(1,588
)
  
75,821
Other mortgage-backed securities (2)
  
42,133
    
12
    
(1,124
)
  
41,021
Total available for sale
$
181,681
  
$
71
  
$
(3,526
)
$
178,226
                       
Held to maturity:
                      
Residential mortgage-backed securities (3)
$
35
  
$
-
  
$
-
  
$
35
 
(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, 2019 are as follows (in thousands):
 
 
   
Available for Sale
    
Held to Maturity
   
Amortized
Cost
    
Estimated
Fair Value
    
Amortized
Cost
    
Estimated
Fair Value
Due in one year or less
  
$
1,399
    
$
1,397
    
$
-
    
$
-
Due after one year through five years
    
9,639
      
9,672
      
30
      
30
Due after five years through ten years
    
45,109
      
45,262
      
3
      
3
Due after ten years
    
115,260
      
114,431
      
-
      
-
Total
  
$
171,407
    
$
170,762
    
$
33
     $
33
 
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, 2019
                                      
                                       
Available for sale:
                                      
Municipal securities
$
-
  
$
-
  
$
2,464
  
$
(4
)
  
$
2,464
  
$
(4
)
Agency securities
  
-
    
-
    
2,952
    
(47
)
    
2,952
    
(47
)
Real estate mortgage investment conduits (1)
  
-
    
-
    
21,818
    
(124
)
    
21,818
    
(124
)
Residential mortgage-backed securities (1)
  
-
    
-
    
54,629
    
(718
)
    
54,629
    
(718
)
Other mortgage-backed securities (2)
  
2,023
    
(20
)
  
22,207
    
(307
)
    
24,230
    
(327
)
Total available for sale
$
2,023
  
$
(20
)
$
104,070
  
$
(1,200
)
  
$
106,093
  
$
(1,220
)
 
 
March 31, 2019
                                      
                                       
Available for sale:
                                      
Municipal securities
$
-
  
$
-
  
$
6,554
  
$
(34
)
  
$
6,554
  
$
(34
)
Agency securities
  
-
    
-
    
6,861
    
(107
)
    
6,861
    
(107
)
Real estate mortgage investment conduits (1)
  
-
    
-
    
40,126
    
(673
)
    
40,126
    
(673
)
Residential mortgage-backed securities (1)
  
-
    
-
    
74,288
    
(1,588
)
    
74,288
    
(1,588
)
Other mortgage-backed securities (2)
  
-
    
-
    
40,409
    
(1,124
)
    
40,409
    
(1,124
)
Total available for sale
$
-
  
$
-
  
$
168,238
  
$
(3,526
)
  
$
168,238
  
$
(3,526
)
                                       
(1) Comprised of FHLMC, FNMA and GNMA issued securities.
(2) Comprised of SBA issued and CRE secured securities issued by FNMA.
 
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, 2019 and 2018. Investment securities available for sale with an amortized cost of $5.5 million and $5.8 million and an estimated fair value of $5.5 million and $5.7 million at June 30, 2019 and March 31, 2019, respectively, were pledged as collateral for government public funds held by the Bank. There were no held to maturity securities pledged as collateral for government public funds held by the Bank at June 30, 2019 and March 31, 2019.