XML 69 R14.htm IDEA: XBRL DOCUMENT v3.19.3.a.u2
Investment Securities
 9 Months Ended
Dec. 31, 2019
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. GAAP requires that securities be classified into three categories: trading, held-to-maturity, and available-for-sale. At December 31, 2019, $70.4 million, or 87.1%, of the Bank’s total securities were classified as available-for-sale, and $10.4 million, or 12.9%, were classified as held-to-maturity. The Bank had no securities classified as trading at December 31, 2019 and March 31, 2019.

        Equity securities as of December 31, 2019 consist of the Bank's investment in a limited partnership Community Capital Fund. As of December 31, 2018, equity investments also included the Bank's investment in a Community Reinvestment Act ("CRA") mutual fund. As a result of the adoption of ASU 2016-01 in April 2018, the Company determined that these investments fall under the provisions of ASU 2016-01, and accordingly, were transferred from available-for-sale and reclassified into equity securities on the Statement of Financial Condition. These securities are measured at fair value with unrealized holding gains and losses reflected in net income. Effective April 1, 2018, the Company recorded a cumulative effect adjustment of $721 thousand as a reclassification from accumulated other comprehensive loss to retained earnings. Additionally, all subsequent changes in fair value have been recognized in the Statements of Operations. The Bank redeemed its $9.2 million investment in the CRA mutual fund during the third quarter of fiscal year 2019.

        Other investments totaled $629 thousand at December 31, 2019 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, 2019 and March 31, 2019:
At December 31, 2019
AmortizedGross Unrealized
$ in thousandsCostGainsLossesFair Value
Available-for-Sale:    
Mortgage-backed securities:    
Government National Mortgage Association$3,717  $23  $21  $3,719  
Federal Home Loan Mortgage Corporation9,824  116  14  9,926  
Federal National Mortgage Association24,265  287  235  24,317  
Total mortgage-backed securities37,806  426  270  37,962  
U.S. Government Agency Securities28,621  —  225  28,396  
Corporate Bonds4,037  50  2  4,085  
Total available-for-sale$70,464  $476  $497  $70,443  
Held-to-Maturity:            
Mortgage-backed securities:            
Government National Mortgage Association$1,044  $66  $—  $1,110  
Federal National Mortgage Association and Other8,403  90  6  8,487  
Total held-to-maturity mortgage-backed securities9,447  156  6  9,597  
Corporate Bonds1,000  7  —  1,007  
Total held-to maturity$10,447  $163  $6  $10,604  

At March 31, 2019
AmortizedGross Unrealized
$ in thousandsCostGainsLossesFair Value
Available-for-Sale:    
Mortgage-backed securities:    
Government National Mortgage Association$4,443  $25  $86  $4,382  
Federal Home Loan Mortgage Corporation11,104  69  148  11,025  
Federal National Mortgage Association27,094  131  617  26,608  
Total mortgage-backed securities42,641  225  851  42,015  
U.S. Government Agency Securities33,089  —  236  32,853  
Corporate Bonds5,054  —  77  4,977  
Total available-for-sale$80,784  $225  $1,164  $79,845  
Held-to-Maturity:            
Mortgage-backed securities:            
Government National Mortgage Association$1,214  $40  $—  $1,254  
Federal National Mortgage Association and Other8,923  —  87  8,836  
Total held-to-maturity mortgage-backed securities10,137  40  87  10,090  
Corporate Bonds1,000  17  —  1,017  
Total held-to-maturity$11,137  $57  $87  $11,107  


        There were no sales of available-for-sale and held-to-maturity securities for the three and nine months ended December 31, 2019 and 2018.
        The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at December 31, 2019 and March 31, 2019 for less than 12 months and 12 months or longer:
At December 31, 2019
Less than 12 months12 months or longerTotal
$ in thousandsUnrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value
Available-for-Sale:      
Mortgage-backed securities$29  $3,424  $241  $14,598  $270  $18,022  
U.S. Government Agency securities94  10,660  131  17,736  225  28,396  
Corporate Bonds—  —  2  2,010  2  2,010  
Total available-for-sale securities$123  $14,084  $374  $34,344  $497  $48,428  
Held-to-Maturity:
Mortgage-backed securities$—  $—  $6  $1,216  $6  $1,216  
  Total held-to-maturity securities$—  $—  $6  $1,216  $6  $1,216  

At March 31, 2019
Less than 12 months12 months or longerTotal
$ in thousandsUnrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value		Unrealized
Losses		Fair
Value
Available-for-Sale:      
Mortgage-backed securities$—  $—  $851  $26,787  $851  $26,787  
U.S. Government Agency securities23  20,851  213  12,002  236  32,853  
Corporate bonds—  —  77  4,977  77  4,977  
Total available-for-sale securities$23  $20,851  $1,141  $43,766  $1,164  $64,617  
Held-to-Maturity:                  
Mortgage-backed securities$—  $—  $87  $8,752  $87  $8,752  
Total held-to-maturity securities$—  $—  $87  $8,752  $87  $8,752  

        A total of 22 securities had an unrealized loss at December 31, 2019 compared to 35 at March 31, 2019. U.S. government agency securities and mortgage-backed securities represented 58.6% and 37.2%, respectively, of total available-for-sale securities in an unrealized loss position at December 31, 2019. There were 11 mortgage-backed securities, two corporate bonds, and three U.S. government agency securities, that had an unrealized loss position for more than 12 months at December 31, 2019. The Bank had one mortgage-backed security in the held-to-maturity portfolio that had an unrealized loss position for more than 12 months. Given the high credit quality of the securities which are backed by the U.S. government's guarantees, and the corporate securities which are all reputable institutions 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 that the Company has the ability and intent to hold the securities until maturity or until the valuations recover.

        The amount of an other-than-temporary impairment when there are credit and non-credit losses on a debt security which management does not intend to sell, and for which it is more likely than not that the Company will not be required to sell the security prior to the recovery of the non-credit impairment is accounted for as follows: (1) the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and (2) the remaining difference between the debt security's amortized cost basis and its fair value would be included in other comprehensive income (loss). The Bank did not have any other securities that were classified as having other-than-temporary impairment in its investment portfolio at December 31, 2019.
        The following is a summary of the amortized cost and fair value of debt securities at December 31, 2019, 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 thousandsAmortized CostFair ValueWeighted
Average Yield
Available-for-Sale:
Less than one year$3,006  $3,004  1.61 %
One through five years4,952  4,908  1.78 %
Five through ten years14,454  14,438  2.40 %
After ten years48,052  48,093  2.34 %
Total$70,464  $70,443  2.29 %
Held-to-maturity:
One through five years$4,469  $4,515  2.39 %
Five through ten years4,003  4,067  3.33 %
After ten years1,975  2,022  2.86 %
Total$10,447  $10,604  2.84 %