Note 10 - Investment Securities

3 Months Ended

Jun. 30, 2011

Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure [Text Block]

(10)           Investment Securities

Investment securities have been classified according to management’s intent.  The amortized cost of securities and their approximate fair values as of March 31, 2011 and 2011 are as follows:

	Held-to-Maturity June 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	4,746	$	14	$	(61	)	$	4,699
Federal Farm Credit Bonds		1,000		-		(3	)		997
Federal Home Loan Mortgage
Corporation Bonds		1,000		-		(2	)		998
Federal National Mortgage Association		2,000		12		(9	)		2,003
Municipal Bond		144		-		(-	)		144
		8,890		26		(75	)		8,841
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		1,931		100		(10	)		2,021
Federal National Mortgage Association		4,061		144		(10	)		4,195
Government National Mortgage Corporation		383		13		(-	)		396
		6,375		257		(20	)		6,612
Total	$	15,265	$	283	$	(95	)	$	15,453

	Held-to-Maturity March 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	4,747	$	-	$	(163	)	$	4,584
Federal Farm Credit Bonds		1,000		-		(22	)		978
Federal Home Loan Mortgage
Corporation Bonds		999		-		(14	)		985
Federal National Mortgage Association		2,000		3		(44	)		1,959
Municipal Bond		144		-		-			144
		8,890		3		(243	)		8,650

Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		2,028		72		(-	)		2,100
Federal National Mortgage Association		4,358		139		(-	)		4,497
Government National Mortgage Corporation		420		14		(-	)		434
		6,806		225		(-	)		7,031
Total	$	15,696	$	228	$	(243	)	$	15,681

	Available for Sale
	June 30, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mutual Fund Shares	$	247	$	4	$	(-	)	$	251

	Available for Sale
	March 31, 2011
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Mutual Fund Shares	$	249	$	-	$	(1	)	$	248

The following is a summary of maturities of securities held-to-maturity and available-for-sale as of June 30, 2011 and March 31, 2011:

June 30, 2011
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	1,834	$	1,834		-		-
After one year through five years		1,874		1,920		-		-
After five years through ten years		6,753		6,735		-		-
After ten years		4,804		4,964		-		-
Equity securities		-		-		247		251
		15,265		15,453		247		251

March 31, 2011
	Held to Maturity				Available for Sale
(Dollars in Thousands)	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Amounts maturing in:
One year or less	$	2,020	$	2,035		-		-
After one year through five years		1,880		1,899		-		-
After five years through ten years		6,755		6,606		-		-
After ten years		5,041		5,141		-		-
Equity securities		-		-		249		248
		15,696		15,681		249		248

The amortized cost and fair value of mortgage-backed securities are presented in the held-to-maturity category by contractual maturity in the preceding table.  Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations without call or prepayment penalties.

Information pertaining to securities with gross unrealized losses at June 30, 2011 and March 31, 2011, aggregated by investment category and length of time that individual securities have been in a continuous loss position, follows:

	June 30, 2011
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	2,685	$	(61	)		-		-		$	2,685	$	(61	)
Federal Farm Credit Bonds		497		(3	)		-		-			497		(3	)
Federal Home Loan Mortgage Corporation Bonds		497		(2	)		-		-			497		(2	)
Federal National Mortgage Association		991		(9	)		-		-			991		(9	)
		4,670		(75	)		-		-			4,670		(75	)
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		489		(10	)		-		-			489		(10	)
Federal National Mortgage Association		2,117		(10	)		-		-			2,117		(10	)
		2,606		(20	)		-		-			2,606		(20	)
Total	$	7,276	$	( 95	)	$	-	$	( -	)	$	7,276	$	( 95	)

	March 31, 2011
	Less Than 12 Months					12 Months or Greater					Total
	Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
(Dollars in Thousands)
Federal Home Loan Bank Bonds	$	4,582	$	(163	)		-		-		$	4,582	$	(163	)
Federal Farm Credit Bonds		978		(22	)		-		-			978		(22	)
Federal Home Loan Mortgage Corporation Bonds		985		(15	)		-		-			985		(15	)
Federal National Mortgage Association		1,457		(43	)		-		-			1,457		(43	)
		8,002		(243	)		-		-			8,002		(243	)
Mortgage-Backed Securities:
Federal Home Loan Mortgage Corporation		-		-			-		-			-		-
Federal National Mortgage Association		146		-			-		-			146		-
Government National Mortgage Corporation		-		-			-		-			-		-
		146		-			-		-			146		-
Mutual Fund Shares		-		-			248	$	( 1	)		248	$	( 1	)
Total	$	8,148	$	( 243	)	$	248	$	( 1	)	$	8,396	$	( 244	)

Management evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation.  Consideration is given to (1) the length of time and the extent to which the fair value has been less than cost, (2) the financial condition and near-term prospects of the issuer, and (3) the intent and ability of the Bank to retain its investment in the issuer for a period of time sufficient to allow for any anticipated recovery in fair value.

At March 31, 2011, the twenty debt securities with unrealized losses have depreciated 3.0% from the Bank’s amortized cost basis.  These unrealized losses relate principally to current interest rates for similar types of securities.  In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government, its agencies, or other governments, whether downgrades by bond rating agencies have occurred, and the results of reviews of the issuer’s financial condition.  As management has the ability to hold debt securities until maturity, or for the foreseeable future if classified as available-for-sale, no declines are deemed to be other-than-temporary.