Note

Investment Securities Available for Sale

The amortized cost and fair value of securities at

September 30, 2018

and

March 31, 2018,

are summarized as follows:

			Gross		Gross
	Amortized		unrealized		unrealized		Fair
September 30, 2018	cost		gains		losses		value

U.S. government agencies	$	2,746,829	$	-	$	35,162	$	2,711,667
Municipal bonds		12,376,464		-		884,033		11,492,431
Corporate bonds		2,000,000		-		50,868		1,949,132
Mortgage-backed securities		55,208,284		3,390		2,501,915		52,709,759
	$	72,331,577	$	3,390	$	3,471,978	$	68,862,989

			Gross		Gross
	Amortized		unrealized		unrealized		Fair
March 31, 2018	cost		gains		losses		value

U.S. government agencies	$	2,753,346	$	-	$	34,697	$	2,718,649
Municipal bonds		12,435,068		-		729,077		11,705,991
Corporate bonds		2,000,000		-		45,924		1,954,076
Mortgage-backed securities		61,078,665		12,993		2,066,238		59,025,420
	$	78,267,079	$	12,993	$	2,875,936	$	75,404,136

There were

sales of investment securities during the

three

and

six

months ended

September 30, 2018.

Proceeds from the sale of investment securities were

$4,243,760

during the

three

and

six

months ended

September 30, 2017,

with gains of

$23,352

and losses of

$12,971.

As of

September 30, 2018,

and

March 31, 2018,

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

$38,258

and fair value of

$38,858

as of

September 30, 2018.

As of

September 30, 2018,

and

March 31, 2018,

the Company had

one

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

$744,186

at both dates and a fair value of

$713,599

and

$723,023,

respectively.

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

September 30, 2018

and

March 31, 2018

follow. Actual maturities

may

differ from contractual maturities because borrowers

may

have the right to call or prepay obligations.

	Available for Sale
	September 30, 2018				March 31, 2018
	Amortized		Fair		Amortized		Fair
	cost		value		cost		value

Maturing
Within one year	$	2,002,643	$	1,998,068	$	2,009,160	$	1,995,625
Over one to five years		1,228,815		1,180,880		1,231,928		1,196,368
Over five to ten years		3,573,299		3,476,232		3,578,827		3,500,641
Over ten years		10,318,536		9,498,050		10,368,499		9,686,082
Mortgage-backed securities, in monthly installments		55,208,284		52,709,759		61,078,665		59,025,420
	$	72,331,577	$	68,862,989	$	78,267,079	$	75,404,136

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

September 30, 2018

and

March 31, 2018.

	Less than 12 months				12 months or longer				Total
	Gross unrealized		Fair		Gross unrealized		Fair		Gross unrealized		Fair
September 30, 2018	losses		value		losses		value		losses		value

U.S. government agencies	$	-	$	-	$	35,162	$	2,711,667	$	35,162	$	2,711,667
Municipal bonds		-		-		884,033		11,492,431		884,033		11,492,431
Corporate bonds		-		-		50,868		1,949,132		50,868		1,949,132
Mortgage-backed securities		185,975		6,707,755		2,315,940		45,756,778		2,501,915		52,464,533
	$	185,975	$	6,707,755	$	3,286,003	$	61,910,008	$	3,471,978	$	68,617,763

	Less than 12 months				12 months or longer				Total
	Gross unrealized		Fair		Gross unrealized		Fair		Gross unrealized		Fair
March 31, 2018	losses		value		losses		value		losses		value

U.S. government agencies	$	21,163	$	723,023	$	13,534	$	1,995,625	$	34,697	$	2,718,648
Municipal bonds		-		-		729,077		11,705,991		729,077		11,705,991
Corporate bonds		-		-		45,924		1,954,076		45,924		1,954,076
Mortgage-backed securities		383,987		15,880,948		1,682,251		40,684,836		2,066,238		56,565,784
	$	405,150	$	16,603,971	$	2,470,786	$	56,340,528	$	2,875,936	$	72,944,499

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.