SECURITIES

The following is a summary of securities at March 31, 2012:



$ in thousands	Amortized		Gross Unrealized					Estimated
	Cost		Gains		Losses			Fair-Value
Available-for-Sale:
Mortgage-backed securities:
Government National Mortgage Association	$	31,100	$	269	$	(23	)	$	31,346
Federal Home Loan Mortgage Corporation	7,468		8		(1		)	7,475
Federal National Mortgage Association	7,214		50		(1		)	7,263
Other	—		—		—			—
Total mortgage-backed securities	45,782		327		(25		)	46,084
U.S. Government Agency Securities	23,176		91		(63		)	23,204
U.S. Government Securities	3,356		6		(1		)	3,361
Corporate Bonds	1,890		58		—			1,948
Other	10,536		—		(27		)	10,509
Total available-for-sale	84,740		482		(116		)	85,106

Held-to-Maturity:
Mortgage-backed securities:
Government National Mortgage Association	6,659		473		—			7,132
Federal Home Loan Mortgage Corporation	2,794		134		—			2,928
Federal National Mortgage Association	1,628		86		—			1,714
Total mortgage-backed securities	11,081		693		—			11,774
Total held-to-maturity	11,081		693		—			11,774
Total securities	$	95,821	$	1,175	$	(116	)	$	96,880

The following is a summary of securities at March 31, 2011:



$ in thousands	Amortized		Gross Unrealized					Estimated
	Cost		Gains		Losses			Fair-Value
Available-for-Sale:
Mortgage-backed securities:
Government National Mortgage Association	$	30,162	$	150	$	(115	)	$	30,197
Federal Home Loan Mortgage Corporation	1,864		—		(13		)	1,851
Federal National Mortgage Association	4,286		—		(63		)	4,223
Other	45		—		—			45
Total mortgage-backed securities	36,357		150		(191		)	36,316
U.S. Government Agency Securities	14,968		—		(277		)	14,691
U.S. Government Securities	$	2,547	$	—	$	(3	)	$	2,544
Total available-for-sale	$	53,872	$	150	$	(471	)	$	53,551

Held-to-Maturity:
Mortgage-backed securities:
Government National Mortgage Association	$	7,598	$	206	$	—		$	7,804
Federal Home Loan Mortgage Corporation	8,210		131		—			8,341
Federal National Mortgage Association	1,889		90		—			1,979
Total mortgage-backed securities	17,697		427		—			18,124
Total held-to-maturity	17,697		427		—			18,124
Total securities	$	71,569	$	577	$	(471	)	$	71,675

The following is a summary regarding securities sales and/or calls of the available-for-sale portfolio for the years ended March 31:



$ in thousands	2012		2011		2010
Available-for-Sale:
Proceeds	$	16,847	$	48,399	$	25,239
Gross gains	8		871		457
Gross losses	—		107		11

The Bank's investment portfolio is comprised primarily of fixed-rate mortgage-backed securities guaranteed by a Government Sponsored Enterprise (“GSE”) as issuer, commercial mortgage obligations ("CMOs") and Agency securities. Carver maintains a portfolio of mortgage-backed securities in the form of Government National Mortgage Association (“GNMA”) pass-through certificates, Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corp (“FHLMC”) participation certificates. GNMA pass-through certificates are guaranteed as to the payment of principal and interest by the full faith and credit of the United States Government while FNMA and FHLMC certificates are each guaranteed by their respective agencies as to principal and interest. Based on the high quality of the Bank's investment portfolio, current market conditions have not significantly impacted the pricing of the portfolio or the Bank's ability to obtain reliable prices.

The net unrealized gain on available-for-sale securities was $0.4 million after taxes at March 31, 2012 compared to a net unrealized loss of $0.2 million after taxes at March 31, 2011. There were no sales of held-to-maturity securities in fiscal 2012, 2011 or 2010.

At March 31, 2012 the Bank pledged securities of $22 million as collateral for advances from the FHLB-NY, and $127 thousand against certain large deposits.

The following is a summary of the carrying value (amortized cost) and fair value of securities at March 31, 2012, 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 Avg Rate
Available-for-Sale:
Less than one year	$	3,356	$	3,361	0.63	%
One through five years	16,085		16,219		1.28	%
Five through ten years	14,160		14,144		2.28	%
After ten years	51,139		51,382		2.59	%
	$	84,740	$	85,106	2.21	%

Held-to-maturity:
One through five years	$	—	$	—	- %
Five through ten years	229		239		4.42	%
After ten years	10,852		11,535		4.53	%
	$	11,081	$	11,774	4.53	%

The unrealized losses and fair value of securities in an unrealized loss position at March 31, 2012 for less than 12 months and 12 months or longer were as follows:



$ in thousands	Less than 12 months					12 months or longer				Total
	Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value
Available-for-Sale:
Mortgage-backed securities	$	(24	)	$	13,699	$	—	$	—	$	(24	)	$	13,699
Agencies	(64		)	9,917		—		—		(64		)	9,917
Treasuries	(1		)	1,555		—		—		(1		)	1,555
Others	(27		)	9,973		—		—		(27		)	9,973
Total available-for-sale securities	(116		)	35,144		—		—		(116		)	35,144

The unrealized losses and fair value of securities in an unrealized loss position at March 31, 2011 were as follows:



$ in thousands	Less than 12 months					12 months or longer				Total
	Unrealized Losses			Fair Value		Unrealized Losses		Fair Value		Unrealized Losses			Fair Value
Available-for-Sale:
Mortgage-backed securities	$	(191	)	$	11,534	$	—	$	—	$	(191	)	$	11,534
Agencies	(280		)	17,235		—		—		(280		)	17,235
Total available-for-sale	$	(471	)	$	28,769	$	—	$	—	$	(471	)	$	28,769

Held-to-Maturity:
Mortgage-backed securities	$	—		$	345	$	—	$	—	$	—		$	345
Other	—			—		—		—		—			—
Total held-to-maturity	—			345		—		—		—			345
Total securities	$	(471	)	$	29,114	$	—	$	—	$	(471	)	$	29,114

A total of 14 securities had an unrealized loss at March 31, 2012 compared to 16 at March 31, 2011, based on estimated fair value. The majority of the securities in an unrealized loss position were mortgage backed securities, and U.S. Treasury securities, which represented 87.6% and 91.2% of total securities which had an unrealized loss at March 31, 2012 and 2011, respectively. The cause of the temporary impairment is directly related to changes in interest rates. In general, as interest rates decline, the fair value of securities will rise, and conversely as interest rates rise, the fair value of securities will decline. Management considers fluctuations in fair value as a result of interest rate changes to be temporary, which is consistent with the Bank's experience. The impairments are deemed temporary based on the direct relationship of the rise in fair value to movements in interest rates, the life of the investments and their high credit quality. Unrealized losses identified as other than temporary are recognized in earnings when there are losses on a debt security which management does not intend to sell, and for which it is more-likely-than-not that the entity will not be required to sell the security prior to the recovery of the non-credit impairment. In those situations, the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and the remaining difference between the debt security's amortized cost basis and its fair value would be included in other comprehensive income. At March 31, 2012 and 2011 the Bank does not have any other securities that may be classified as having other than temporary impairment in its investment portfolio.