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INVESTMENT SECURITIES
9 Months Ended
Dec. 31, 2022
INVESTMENT SECURITIES  
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):

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Gross

    

Estimated 

​

​

Amortized

​

Unrealized

​

Unrealized 

​

Fair

​

​

Cost

​

 Gains

​

Losses

​

Value

December 31, 2022

 

​

  

 

​

  

 

​

  

 

​

  

Available for sale:

 

​

​

 

​

  

 

​

  

 

​

  

Municipal securities

​

$

47,904

​

$

15

​

$

(9,396)

​

$

38,523

Agency securities

​

 

93,745

​

​

—

​

​

(7,084)

​

​

86,661

Real estate mortgage investment conduits (1)

​

 

34,952

​

​

—

​

​

(6,041)

​

​

28,911

Residential mortgage-backed securities (1)

​

 

17,272

​

​

—

​

​

(1,216)

​

​

16,056

Other mortgage-backed securities (2)

​

 

46,198

​

​

13

​

​

(4,656)

​

​

41,555

Total available for sale

​

$

240,071

​

$

28

​

$

(28,393)

​

$

211,706

​

​

​

​

​

​

​

​

​

​

​

​

​

Held to maturity:

​

 

​

​

​

​

​

​

​

​

​

​

Municipal securities

​

$

10,350

​

$

—

​

$

(3,244)

​

$

7,106

Agency securities

​

​

53,896

​

​

—

​

​

(5,887)

​

​

48,009

Real estate mortgage investment conduits (1)

​

​

36,008

​

​

—

​

​

(5,346)

​

​

30,662

Residential mortgage-backed securities (1)

​

​

126,271

​

​

—

​

​

(19,254)

​

​

107,017

Other mortgage-backed securities (3)

​

​

20,622

​

​

—

​

​

(3,683)

​

​

16,939

Total held to maturity

​

$

247,147

​

$

—

​

$

(37,414)

​

$

209,733

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

    

​

​

    

Gross

    

Gross

    

​

​

​

​

Amortized

​

Unrealized 

​

Unrealized

​

Estimated 

​

​

Cost

​

Gains

​

 Losses

​

Fair Value

March 31, 2022

 

​

  

 

​

  

 

​

  

 

​

  

Available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

Municipal securities

​

$

44,104

​

$

14

​

$

(4,514)

​

$

39,604

Agency securities

​

 

43,848

​

​

1

​

​

(3,144)

​

​

40,705

Real estate mortgage investment conduits (1)

​

 

35,563

​

​

1

​

​

(2,847)

​

​

32,717

Residential mortgage-backed securities (1)

​

 

17,368

​

​

13

​

​

(436)

​

​

16,945

Other mortgage-backed securities (2)

​

 

37,991

​

​

28

​

​

(2,208)

​

​

35,811

Total available for sale

​

$

178,874

​

$

57

​

$

(13,149)

​

$

165,782

​

​

​

​

​

​

​

​

​

​

​

​

​

Held to maturity:

​

 

​

​

​

​

​

​

​

​

​

​

Municipal securities

​

$

10,368

​

$

—

​

$

(1,422)

​

$

8,946

Agency securities

​

​

45,277

​

​

—

​

​

(2,450)

​

​

42,827

Real estate mortgage investment conduits (1)

​

​

39,394

​

​

—

​

​

(2,457)

​

​

36,937

Residential mortgage-backed securities (1)

​

​

137,343

​

​

—

​

​

(8,883)

​

​

128,460

Other mortgage-backed securities (3)

​

​

20,718

​

​

—

​

​

(1,859)

​

​

18,859

Total held to maturity

​

$

253,100

​

$

—

​

$

(17,071)

​

$

236,029

​

(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 and FHLMC.
(3)Comprised of FHLMC and FNMA issued securities.

The contractual maturities of investment securities as of December 31, 2022 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

​

$

5,618

​

$

5,576

​

$

5

​

$

5

Due after one year through five years

​

 

84,927

​

 

80,879

​

 

42,168

​

 

38,799

Due after five years through ten years

​

 

57,980

​

 

49,934

​

 

29,798

​

 

24,514

Due after ten years

​

 

91,546

​

 

75,317

​

 

175,176

​

 

146,415

Total

​

$

240,071

​

$

211,706

​

$

247,147

​

$

209,733

​

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

December 31, 2022

​

 Value

​

Losses

​

 Value

​

Losses

​

 Value

​

Losses

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available for sale:

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

​

 

  

Municipal securities

​

$

14,341

​

$

(2,024)

​

$

22,996

​

$

(7,372)

​

$

37,337

​

$

(9,396)

Agency securities

​

 

50,832

​

 

(1,047)

​

 

35,829

​

 

(6,037)

​

 

86,661

​

 

(7,084)

Real estate mortgage investment conduits (1)

​

 

5,903

​

 

(462)

​

 

23,005

​

 

(5,579)

​

 

28,908

​

 

(6,041)

Residential mortgage-backed securities (1)

​

 

13,985

​

 

(968)

​

 

2,071

​

 

(248)

​

 

16,056

​

 

(1,216)

Other mortgage-backed securities (2)

​

 

25,409

​

 

(1,540)

​

 

14,384

​

 

(3,116)

​

 

39,793

​

 

(4,656)

Total available for sale

​

$

110,470

​

$

(6,041)

​

$

98,285

​

$

(22,352)

​

$

208,755

​

$

(28,393)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Municipal securities

​

$

1,649

​

$

(777)

​

$

5,457

​

$

(2,467)

​

$

7,106

​

$

(3,244)

Agency securities

​

​

20,800

​

​

(1,473)

​

​

27,209

​

​

(4,414)

​

​

48,009

​

​

(5,887)

Real estate mortgage investment conduits (1)

​

​

12,891

​

​

(1,517)

​

​

17,771

​

​

(3,829)

​

​

30,662

​

​

(5,346)

Residential mortgage-backed securities (1)

​

​

28,800

​

​

(3,641)

​

​

78,217

​

​

(15,613)

​

​

107,017

​

​

(19,254)

Other mortgage-backed securities (3)

​

​

5,457

​

​

(760)

​

​

11,482

​

​

(2,923)

​

​

16,939

​

​

(3,683)

Total held to maturity

​

$

69,597

​

$

(8,168)

​

$

140,136

​

$

(29,246)

​

$

209,733

​

$

(37,414)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

March 31, 2022

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Available for sale:

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

 

​

  

Municipal securities

​

$

32,767

​

$

(4,293)

​

$

3,282

​

$

(221)

​

$

36,049

​

$

(4,514)

Agency securities

​

 

22,288

​

 

(1,565)

​

 

16,414

​

 

(1,579)

​

​

38,702

​

​

(3,144)

Real estate mortgage investment conduits (1)

​

 

17,334

​

 

(1,310)

​

 

15,275

​

 

(1,537)

​

​

32,609

​

​

(2,847)

Residential mortgage-backed securities (1)

​

 

15,702

​

 

(436)

​

 

—

​

 

—

​

​

15,702

​

 

(436)

Other mortgage-backed securities (2)

​

 

32,408

​

 

(2,194)

​

 

769

​

 

(14)

​

​

33,177

​

​

(2,208)

Total available for sale

​

$

120,499

​

$

(9,798)

​

$

35,740

​

$

(3,351)

​

$

156,239

​

$

(13,149)

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Held to maturity:

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

​

Municipal securities

​

$

5,911

​

$

(816)

​

$

3,036

​

$

(606)

​

$

8,947

​

$

(1,422)

Agency securities

​

​

35,930

​

​

(1,708)

​

​

6,897

​

​

(742)

​

​

42,827

​

​

(2,450)

Real estate mortgage investment conduits (1)

​

​

26,233

​

​

(1,715)

​

​

7,735

​

​

(742)

​

​

33,968

​

​

(2,457)

Residential mortgage-backed securities (1)

​

​

111,096

​

​

(7,160)

​

​

17,363

​

​

(1,723)

​

​

128,459

​

​

(8,883)

Other mortgage-backed securities (3)

​

​

13,472

​

​

(1,153)

​

​

5,386

​

​

(706)

​

​

18,858

​

​

(1,859)

Total held to maturity

​

$

192,642

​

$

(12,552)

​

$

40,417

​

$

(4,519)

​

$

233,059

​

$

(17,071)

​

(1)Comprised of FHLMC, FNMA and GNMA issued securities.
(2)Comprised of SBA and CRE secured securities issued by FHLMC and FNMA.
(3)Comprised of CRE secured securities issued by FHLMC and 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. The Company has the ability and intent to hold the investments until the fair value recovers. 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 and nine months ended December 31, 2022 and 2021. Investment securities available for sale with an amortized cost of $3.4 million and $1.3 million and an estimated fair value of $3.1 million and $1.2 million at December 31, 2022 and March 31, 2022, respectively, were pledged as collateral for government public funds held by the Bank. Investment securities held to maturity with an amortized cost of $12.6 million and $13.7 million and a fair value of $10.5 million and $12.6 million at December 31, 2022 and March 31, 2022, respectively, were pledged as collateral for government public funds held by the Bank.