Note 5 - Investment Securities Available for Sale

3 Months Ended

Jun. 30, 2017

Notes to Financial Statements

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

Note 5: Investment Securities Available for Sale

The amortized cost and fair value of securities at

June 30, 2017

and

March 31, 2017,

are summarized as follows:

			Gross		Gross
	Amortized		unrealized		unrealized		Fair
June 30, 2017	cost		gains		losses		value
U.S. government agencies	$	3,521,460	$	310	$	13,142	$	3,508,628
Municipal bonds		17,051,933		30,894		618,977		16,463,850
Corporate bonds		2,000,000		-		80,504		1,919,496
Mortgage-backed securities		77,678,074		74,001		1,030,266		76,721,809
	$	100,251,467	$	105,205	$	1,742,889	$	98,613,783

			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

There were

no

sales of investment securities during the

three

months ended

June 30, 2017

or

2016.

As of

June 30, 2017

and

March 31, 2017,

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

one

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

May 2016

with a book value of

$93,282

and fair value of

$98,333

as of

June 30, 2017.

As of

June 30, 2017

and

March 31, 2017,

the Company had

one

pledged security to the Federal Reserve Bank with a book value of

$744,186

and a fair value of

$739,203

and

$736,412,

respectively.

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

June 30, 2017

and

March 31, 2017

follow. Actual maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations.

	Available for Sale
	June 30, 2017				March 31, 2017
	Amortized		Fair		Amortized		Fair
	cost		value		cost		value
Maturing
Within one year	$	-	$	-	$	-	$	-
Over one to five years		4,228,385		4,238,868		4,234,642		4,240,740
Over five to ten years		5,216,084		5,098,347		5,538,313		5,404,810
Over ten years		13,128,924		12,554,759		12,848,895		11,951,114
Mortgage-backed, in monthly installments		77,678,074		76,721,809		81,994,305		80,832,464
	$	100,251,467	$	98,613,783	$	104,616,155	$	102,429,128

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

June 30, 2017

and

March 31, 2017.

	Less than 12 months				12 months or longer				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		Unrealized		Fair
June 30, 2017	losses		value		losses		value		losses		value
U.S. government agencies	$	13,142	$	2,749,979	$	-	$	-	$	13,142	$	2,749,979
Municipal bonds		618,977		14,273,701		-		-		618,977		14,273,701
Corporate bonds		-		-		80,504		1,919,496		80,504		1,919,496
Mortgage-backed securities		761,162		57,857,120		269,104		7,075,161		1,030,266		64,932,281
	$	1,393,281	$	74,880,800	$	349,608	$	8,994,657	$	1,742,889	$	83,875,457

	Less than 12 months				12 months or longer				Total
	Gross				Gross				Gross
	Unrealized		Fair		Unrealized		Fair		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

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 (

1

) duration and magnitude of the decline in value, (

2

) the financial condition of the issuer or issuers and (

3

) structure of the security.

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

1

) the Company intends to sell the debt security; (

2

) it is more likely than

not

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

3

) 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.