XML 24 R14.htm IDEA: XBRL DOCUMENT
v3.22.4

Investment Securities | 9 Months Ended
--- | ---
Dec. 31, 2022
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The Bank utilizes mortgage-backed and other investment securities in its asset/liability management strategy. In making investment decisions, the Bank considers, among other things, its yield and interest rate objectives, its interest rate and credit risk position, and its liquidity and cash flow. Generally, the investment policy of the Bank is to invest funds among categories of investments and maturities based upon the Bank’s asset/liability management policies, investment quality, loan and deposit volume and collateral requirements, liquidity needs and performance objectives. Debt securities are classified into three categories: trading, held-to-maturity, and available-for-sale. At December 31, 2022, securities with fair value of $53.4 million, or 95.7%, of the Bank’s total securities were classified as available-for-sale, and securities with amortized cost of $2.4 million, or 4.3%, were classified as held-to-maturity, compared to $67.6 million and $5.3 million at March 31, 2022, respectively. The Bank had no securities classified as trading at December 31, 2022 and March 31, 2022. Other investments as of December 31, 2022 primarily consists of the Bank's investment in a limited partnership Community Capital Fund and a $5.1 million bank-owned life insurance policy ("BOLI") that was purchased during the first quarter of fiscal year 2023 as a channel to add to the Company's non-interest income revenue by means of an investment considered safe and sound by the Company's regulators. The investment in the limited partnership is measured using the equity method. The BOLI is carried at the cash surrender value of the underlying policies. Income generated from the investment and the increase in the cash surrender value of the BOLI is included in other non-interest income on the Statements of Operations. Other investments totaled $6.2 million at December 31, 2022 and are included in Other Assets on the Statements of Financial Condition. The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2022 and March 31, 2022:
|  | At December 31, 2022
|  | Amortized |  | Gross Unrealized |  |
$ in thousands |  | Cost |  | Gains |  | Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |  |
Mortgage-backed Securities: |  |  |  |  |  |  |  |
Government National Mortgage Association |  | $ | 347 |  |  | $ | — |  |  | $ | 4 |  |  | $ | 343 |
Federal Home Loan Mortgage Corporation |  | 22,012 |  |  | — |  |  | 4,518 |  |  | 17,494 |
Federal National Mortgage Association |  | 11,868 |  |  | — |  |  | 2,357 |  |  | 9,511 |
Total mortgage-backed securities |  | 34,227 |  |  | — |  |  | 6,879 |  |  | 27,348 |
U.S. Government Agency Securities |  | 9,860 |  |  | — |  |  | 38 |  |  | 9,822 |
Corporate Bonds |  | 5,269 |  |  | — |  |  | 2,324 |  |  | 2,945 |
Muni Securities |  | 17,724 |  |  | — |  |  | 4,496 |  |  | 13,228 |
Asset-backed Securities |  | 101 |  |  | — |  |  | 1 |  |  | 100 |
Total available-for-sale |  | $ | 67,181 |  |  | $ | — |  |  | $ | 13,738 |  |  | $ | 53,443 |
Held-to-Maturity: |  |  |  |  |  |  |  |
Mortgage-backed Securities: |  |  |  |  |  |  |  |
Government National Mortgage Association |  | $ | 384 |  |  | $ | — |  |  | $ | 8 |  |  | $ | 376 |
Federal National Mortgage Association and Other |  | 2,022 |  |  | — |  |  | 116 |  |  | 1,906 |
Total held-to maturity |  | $ | 2,406 |  |  | $ | — |  |  | $ | 124 |  |  | $ | 2,282 |
|  | At March 31, 2022
|  | Amortized |  | Gross Unrealized |  |
$ in thousands |  | Cost |  | Gains |  | Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |  |
Mortgage-backed Securities: |  |  |  |  |  |  |  |
Government National Mortgage Association |  | $ | 439 |  |  | $ | 9 |  |  | $ | — |  |  | $ | 448 |
Federal Home Loan Mortgage Corporation |  | 23,744 |  |  | — |  |  | 2,197 |  |  | 21,547 |
Federal National Mortgage Association |  | 12,852 |  |  | — |  |  | 1,268 |  |  | 11,584 |
Total mortgage-backed securities |  | 37,035 |  |  | 9 |  |  | 3,465 |  |  | 33,579 |
U.S. Government Agency Securities |  | 13,864 |  |  | — |  |  | 79 |  |  | 13,785 |
Corporate Bonds |  | 5,271 |  |  | — |  |  | 1,150 |  |  | 4,121 |
Muni Securities |  | 17,741 |  |  | — |  |  | 1,973 |  |  | 15,768 |
Asset-backed Securities |  | 347 |  |  | — |  |  | 4 |  |  | 343 |
Total available-for-sale |  | $ | 74,258 |  |  | $ | 9 |  |  | $ | 6,671 |  |  | $ | 67,596 |
Held-to-Maturity: |  |  |  |  |  |  |  |
Mortgage-backed Securities: |  |  |  |  |  |  |  |
Government National Mortgage Association |  | $ | 481 |  |  | $ | 27 |  |  | $ | — |  |  | $ | 508 |
Federal National Mortgage Association and Other |  | 4,773 |  |  | 9 |  |  | 14 |  |  | 4,768 |
Total held-to-maturity |  | $ | 5,254 |  |  | $ | 36 |  |  | $ | 14 |  |  | $ | 5,276 |
There were no sales of available-for-sale and held-to-maturity securities for the nine months ended December 31, 2022 and December 31, 2021. The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at December 31, 2022 and March 31, 2022 for less than 12 months and 12 months or longer:
|  | At December 31, 2022
|  | Less than 12 months |  | 12 months or longer |  | Total
$ in thousands |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 41 |  |  | $ | 1,225 |  |  | $ | 6,838 |  |  | $ | 26,123 |  |  | $ | 6,879 |  |  | $ | 27,348 |
U.S. Government Agency securities |  | 12 |  |  | 4,107 |  |  | 26 |  |  | 5,715 |  |  | 38 |  |  | 9,822 |
Corporate bonds |  | — |  |  | — |  |  | 2,324 |  |  | 2,945 |  |  | 2,324 |  |  | 2,945 |
Muni securities |  | 456 |  |  | 2,222 |  |  | 4,040 |  |  | 11,006 |  |  | 4,496 |  |  | 13,228 |
Asset-backed securities |  | — |  |  | — |  |  | 1 |  |  | 100 |  |  | 1 |  |  | 100 |
Total available-for-sale securities |  | $ | 509 |  |  | $ | 7,554 |  |  | $ | 13,229 |  |  | $ | 45,889 |  |  | $ | 13,738 |  |  | $ | 53,443 |
Held-to-Maturity: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 124 |  |  | $ | 2,246 |  |  | $ | — |  |  | $ | — |  |  | $ | 124 |  |  | $ | 2,246 |
Total held-to-maturity securities |  | $ | 124 |  |  | $ | 2,246 |  |  | $ | — |  |  | $ | — |  |  | $ | 124 |  |  | $ | 2,246 |
|  | At March 31, 2022
|  | Less than 12 months |  | 12 months or longer |  | Total
$ in thousands |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value |  | Unrealized Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 519 |  |  | $ | 7,057 |  |  | $ | 2,946 |  |  | $ | 26,128 |  |  | $ | 3,465 |  |  | $ | 33,185 |
U.S. Government Agency securities |  | — |  |  | — |  |  | 79 |  |  | 13,785 |  |  | 79 |  |  | 13,785 |
Corporate bonds |  | — |  |  | — |  |  | 1,150 |  |  | 4,121 |  |  | 1,150 |  |  | 4,121 |
Muni securities |  | 1,640 |  |  | 13,512 |  |  | 333 |  |  | 2,256 |  |  | 1,973 |  |  | 15,768 |
Asset-backed securities |  | 4 |  |  | 343 |  |  | — |  |  | — |  |  | 4 |  |  | 343 |
Total available-for-sale securities |  | $ | 2,163 |  |  | $ | 20,912 |  |  | $ | 4,508 |  |  | $ | 46,290 |  |  | $ | 6,671 |  |  | $ | 67,202 |
Held-to-Maturity: |  |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities |  | $ | 14 |  |  | $ | 2,204 |  |  | $ | — |  |  | $ | — |  |  | $ | 14 |  |  | $ | 2,204 |
Total held-to-maturity securities |  | $ | 14 |  |  | $ | 2,204 |  |  | $ | — |  |  | $ | — |  |  | $ | 14 |  |  | $ | 2,204 |
A total of 26 securities had an unrealized loss at December 31, 2022 compared to 23 at March 31, 2022. Mortgage-backed securities, U.S. government agency securities, municipal securities and a corporate bond security represented 51.2%, 18.4%, 24.8% and 5.5%, respectively, of total available-for-sale securities in an unrealized loss position at December 31, 2022. There were six mortgage-backed securities, two U.S. government agency securities, one corporate bond, five municipal securities and one asset-backed security that had an unrealized loss position for more than 12 months at December 31, 2022. Given the high credit quality of the mortgage-backed securities, which are backed by the U.S. government's guarantees, the high credit quality and strong financial performance of the U.S. Government Agency and the results of the individual analyses performed for and continuous surveillance on the municipal securities, as well as the corporate security that is a reputable institution in good financial standing, the risk of credit loss is minimal. Management believes that these unrealized losses are a direct result of the current rate environment and the Company has the ability and intent to hold the securities until maturity or the valuations recover. The Bank did not have any securities that were classified as having other-than-temporary impairment in its investment portfolio at December 31, 2022. The following is a summary of the amortized cost and fair value of debt securities at December 31, 2022, by remaining period to contractual maturity (ignoring earlier call dates, if any). Actual maturities may differ from contractual maturities because certain security issuers have the right to call or prepay their obligations. The table below does not consider the effects of possible prepayments or unscheduled repayments.
$ in thousands | Amortized Cost |  | Fair Value |  | Weighted Average Yield
Available-for-Sale: |  |  |  |  |
Less than one year | $ | 101 |  |  | $ | 100 |  |  | (0.85) | %
One through five years | — |  |  | — |  |  | — | %
Five through ten years | 6,127 |  |  | 5,655 |  |  | 4.08 | %
After ten years | 26,726 |  |  | 20,340 |  |  | 3.10 | %
Mortgage-backed securities | 34,227 |  |  | 27,348 |  |  | 1.59 | %
Total | $ | 67,181 |  |  | $ | 53,443 |  |  | 2.26 | %
Held-to-maturity: |  |  |  |  |
Mortgage-backed securities | $ | 2,406 |  |  | $ | 2,282 |  |  | 2.74 | %

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
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://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI https://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration