Note

Investment Securities Available for Sale

The amortized cost and fair value of securities at

March 31, 2017

and

2016,

is summarized as follows:

			Gross		Gross
	Amortized		unrealized		unrealized		Fair
March 31, 2017	cost		gains		losses		value

U.S. government agencies	$	3,525,373	$	323	$	13,393	$	3,512,303
Municipal bonds		17,096,477		21,858		950,496		16,167,839
Corporate bonds		2,000,000		-		83,478		1,916,522
Mortgage-backed securities		81,994,305		65,094		1,226,935		80,832,464
	$	104,616,155	$	87,275	$	2,274,302	$	102,429,128

			Gross		Gross
	Amortized		unrealized		unrealized		Fair
March 31, 2016	cost		gains		losses		value

U.S. government agencies	$	10,519,126	$	20,622	$	6,752	$	10,532,996
Municipal bonds		4,061,599		51,105		140		4,112,564
Corporate bonds		2,000,000		-		101,360		1,898,640
Mortgage-backed securities		53,939,706		300,731		300,237		53,940,200
	$	70,520,431	$	372,458	$	408,489	$	70,484,400

Proceeds from sales of investment securities were

$4,273,234

and

$19,228,336

during the years ended

March 31, 2017

and

2016,

respectively, with gains of

$35,441

and losses of

$9,995

for the year ended

March 31, 2017

and gains of

$325,259

and losses of

$53,700

for the year ended

March 31, 2016.

During fiscal

2017,

we also sold certificates of deposits that were held as investments. Proceeds associated with those certificates of deposits were

$2,228,273

with losses of

$1,726.

As of

March 31, 2017

and

2016,

all mortgage-backed securities are backed by U.S. Government- Sponsored Enterprises (GSE), except

one

private label mortgage-backed security that was acquired in the Fraternity acquisition in

May 2016

with a book value of

$94,390

and fair value of

$94,381

as of

March 31, 2017.

As of

March 31, 2017

and

2016,

the Company had pledged

one

security to the Federal Reserve Bank with a book value of

$744,186

and

$2,000,000

and a fair value of

$736,412

and

$1,993,226,

respectively.

The amortized cost and estimated fair value of debt securities by contractual maturity at

March 31, 2017

and

2016

follow. Actual maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations.

	Available for Sale
	March 31, 2017				March 31, 2016
	Amortized		Fair		Amortized		Fair
	cost		value		cost		value

Maturing
Within one year	$	-	$	-	$	731,217	$	731,060
Over one to five years		4,234,642		4,240,740		3,268,217		3,287,589
Over five to ten years		5,538,313		5,404,810		9,830,135		9,751,610
Over ten years		12,848,895		11,951,114		2,751,156		2,773,941
Mortgage-backed, in monthly installments		81,994,305		80,832,464		53,939,706		53,940,200
	$	104,616,155	$	102,429,128	$	70,520,431	$	70,484,400

The following table presents the Company's investments' gross unrealized losses and the corresponding fair values by investment category and length of time that the securities have been in a continuous unrealized loss position at

March 31, 2017

and

2016.

	Less than 12 months				12 months or longer				Total
	Gross unrealized		Fair		Gross unrealized		Fair		Gross unrealized		Fair
March 31, 2017	losses		value		losses		value		losses		value

U.S. government agencies	$	13,393	$	3,256,964	$	-	$	-	$	13,393	$	3,256,964
Municipal bonds		950,496		13,982,251		-		-		950,496		13,982,251
Corporate bonds		-		-		83,478		1,916,522		83,478		1,916,522
Mortgage-backed securities		941,183		66,953,532		285,752		7,016,746		1,226,935		73,970,278
	$	1,905,072	$	84,192,747	$	369,230	$	8,933,268	$	2,274,302	$	93,126,015

	Less than 12 months				12 months or longer				Total
	Gross unrealized		Fair		Gross unrealized		Fair		Gross unrealized		Fair
March 31, 2016	losses		value		losses		value		losses		value

U.S. government agencies	$	6,752	$	2,244,157	$	-	$	-	$	6,752	$	2,244,157
Municipal bonds		140		480,168		-		-		140		480,168
Corporate bonds		-		-		101,360		1,898,640		101,360		1,898,640
Mortgage-backed securities		33,080		4,367,962		267,157		20,274,037		300,237		24,641,999
	$	39,972	$	7,092,287	$	368,517	$	22,172,677	$	408,489	$	29,264,964

The unrealized losses that exist are a result of market changes in interest rates since the original purchase. Management systematically evaluates investment securities for other-than-temporary declines in fair value on an annual basis from the date of purchase if the respective security is in a loss position. This analysis requires management to consider various factors, which include (

) duration and magnitude of the decline in value, (

) the financial condition of the issuer or issuers and (

) structure of the security.

An impairment loss is recognized in earnings if any of the following are true: (

) the Company intends to sell the debt security; (

) it is more likely than

not

that the Company will be required to sell the security before recovery of its amortized cost basis; or (

) the Company does

not

expect to recover the entire amortized cost basis of the security. In situations where the Company intends to sell or when it is more likely than

not

that the Company will be required to sell the security, the entire impairment loss must be recognized in earnings. In all other situations, only the portion of the impairment loss representing the credit loss must be recognized in earnings, with the remaining portion being recognized in shareholders’ equity as a component of other comprehensive income, net of deferred tax.