3. INVESTMENT SECURITIES

The amortized cost and approximate fair value of investment securities consisted of the following at the dates indicated (in thousands):


			Gross		Gross		Estimated
	Amortized		Unrealized		Unrealized		Fair
	Cost		Gains		Losses		Value
March 31, 2021
Available for sale:
Municipal securities	$	23,883	$	238	$	(555)	$	23,566
Agency securities		25,996		5		(686)		25,315
Real estate mortgage investment conduits (1)		55,826		469		(480)		55,815
Residential mortgage-backed securities (1)		71,787		1,075		(614)		72,248
Other mortgage-backed securities (2)		39,022		514		(176)		39,360
Total available for sale	$	216,514	$	2,301	$	(2,511)	$	216,304

Held to maturity:
Municipal securities	$	10,391	$	—	$	(509)	$	9,882
Agency securities		7,688		—		(220)		7,468
Real estate mortgage investment conduits (1)		9,207		—		(141)		9,066
Residential mortgage-backed securities (3)		6,175		—		(119)		6,056
Other mortgage-backed securities (2)		6,113		—		(365)		5,748
Total held to maturity	$	39,574	$	—	$	(1,354)	$	38,220


			Gross		Gross
	Amortized		Unrealized		Unrealized		Estimated
	Cost		Gains		Losses		Fair Value
March 31, 2020
Available for sale:
Municipal securities	$	4,740	$	137	$	—	$	4,877
Agency securities		6,009		17		(10)		6,016
Real estate mortgage investment conduits (1)		42,663		1,128		—		43,791
Residential mortgage-backed securities (1)		58,700		1,415		(30)		60,085
Other mortgage-backed securities (2)		33,417		256		(151)		33,522
Total available for sale	$	145,529	$	2,953	$	(191)	$	148,291

Held to maturity:
Residential mortgage-backed securities (3)	$	28	$	—	$	—	$	28

(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 March 31, 2021 are as follows (in thousands):


	Available for Sale				Held to Maturity
			Estimated				Estimated
	Amortized		Fair		Amortized		Fair
	Cost		Value		Cost		Value
Due in one year or less	$	—	$	—	$	—	$	—
Due after one year through five years		5,919		5,992		18		18
Due after five years through ten years		57,704		57,409		8,595		8,193
Due after ten years		152,891		152,903		30,961		30,009
Total	$	216,514	$	216,304	$	39,574	$	38,220

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				Estimated				Estimated
	Fair		Unrealized		Fair		Unrealized		Fair		Unrealized
	Value		Losses		Value		Losses		Value		Losses
March 31, 2021

Available for sale:
Municipal securities	$	17,529	$	(555)	$	—	$	—	$	17,529	$	(555)
Agency securities		23,306		(686)		—		—		23,306		(686)
Real estate mortgage investment conduits (1)		25,462		(480)		—		—		25,462		(480)
Residential mortgage-backed securities		33,164		(614)		—		—		33,164		(614)
Other mortgage-backed securities (2)		5,856		(125)		2,225		(51)		8,081		(176)
Total available for sale	$	105,317	$	(2,460)	$	2,225	$	(51)	$	107,542	$	(2,511)

Held to maturity:
Municipal securities	$	9,882	$	(509)	$	—	$	—	$	9,882	$	(509)
Agency securities		7,468		(220)		—		—		7,468		(220)
Real estate mortgage investment conduits (4)		9,066		(141)		—		—		9,066		(141)
Residential mortgage-backed securities (5)		6,035		(119)		—		—		6,035		(119)
Other mortgage-backed securities		5,748		(365)		—		—		5,748		(365)
Total held to maturity	$	38,199	$	(1,354)	$	—	$	—	$	38,199	$	(1,354)

March 31, 2020

Available for sale:
Agency securities	$	1,998	$	(10)	$	—	$	—	$	1,998	$	(10)
Residential mortgage-backed securities (5)		2,509		(22)		409		(8)		2,918		(30)
Other mortgage-backed securities (6)		11,726		(58)		4,911		(93)		16,637		(151)
Total available for sale	$	16,233	$	(90)	$	5,320	$	(101)	$	21,553	$	(191)

(1) Comprised of FHLMC, FNMA and GNMA issued securities.

(2) Comprised of SBA issued securities.

(3) Comprised of FHLMC issued securities.

(4) Comprised of FNMA issued securities.

(5) Comprised of FHLMC and FNMA issued securities.

(6) Comprised of SBA 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 year ended March 31, 2021. Proceeds from the sale of investment securities totaled $17.8 million for the year ended March 31, 2020. Gross realized gains on sales of investment securities totaled $30,000 for the year ended March 31, 2020 and are included in other non-interest income in the accompanying consolidated statements of income. The Company had no sales and realized no gains or losses on sales of investment securities for the year ended March 31, 2019.

Investment securities available for sale with an amortized cost of $5.3 million and $6.6 million and a fair value of $5.4 million and $6.8 million at March 31, 2021 and 2020, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $3.1 million and a fair value of $3.0 million at March 31, 2021 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 March 31, 2020.