Note 4 - Investment Securities

9 Months Ended

Dec. 31, 2013

Investments In Debt And Marketable Equity Securities And Certain Trading Assets [Abstract]

Investments In Debt And Marketable Equity Securities And Certain Trading Assets [Text Block]

Note 4. Investment Securities

The amortized cost and estimated fair value of investment securities at December 31, 2013 and March 31, 2013, are summarized as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
December 31, 2013
Investment securities available-for-sale:
U.S. government agencies	$	15,386,705	$	0	$	891,201	$	14,495,504
Brokered certificates of deposit		5,146,000		17,100		5,276		5,157,824
Mortgage-backed securities (Agency)		21,558,982		95,272		627,982		21,026,272
Collateralized mortgage obligations (Agency)		11,157,396		21,071		191,770		10,986,697
	$	53,249,083	$	133,443	$	1,716,229	$	51,666,297

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2013
Investment securities available-for-sale:
U.S. government agencies	$	15,137,211	$	18,332	$	33,765	$	15,121,778
Brokered certificates of deposit		8,444,000		36,394		1,119		8,479,275
Mortgage-backed securities (Agency)		18,802,845		256,680		37,871		19,021,654
Collateralized mortgage obligations (Agency)		13,598,841		76,606		15,979		13,659,468
	$	55,982,897	$	388,012	$	88,734	$	56,282,175

The Bank has arranged for two lines of credit with large financial institutions for liquidity to meet expected and unexpected cash needs. One line of credit is unsecured and the other is collateralized by brokered certificates of deposit if any advances are disbursed. As of December 31, 2013 and March 31, 2013, there were no borrowings or securities pledged under these lines of credit.

The following is a summary of contractual maturities of securities available-for-sale as of December 31, 2013:

	Available-for-Sale
	Amortized Cost		Estimated Fair Value

Amounts maturing in:
One year or less	$	1,900,000	$	1,904,114
After one year through five years		8,618,607		8,525,724
After five years through ten years		8,364,098		7,697,533
After ten years		1,650,000		1,525,957
		20,532,705		19,653,328

Mortgage-backed securities (Agency)		21,558,982		21,026,272
Collateralized mortgage obligations (Agency)		11,157,396		10,986,697
	$	53,249,083	$	51,666,297

Proceeds from the sale of investment securities were $2,315,202 and $17,469,413 during the nine months ended December 31, 2013 and 2012, respectively, with gains of $14,347 and losses of $8,857 for the nine months ended December 31, 2013 and gains of $302,785 and losses of $16,670 for the nine months ended December 31, 2012.

The following table presents Madison’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 December 31, 2013 and March 31, 2013.

	Less than 12 Months				12 Months or More				Total
December 31, 2013	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

Investment securities available-for-sale:
U.S. Government agencies	$	11,348,595	$	586,302	$	3,146,909	$	304,899	$	14,495,504	$	891,201
Brokered certificates of deposit		664,724		5,276		0		0		664,724		5,276
Mortgage-backed securities (Agency)		13,880,726		627,981		0		0		13,880,726		627,981
Collateralized mortgage obligations (Agency)		3,697,198		168,982		2,395,870		22,789		6,093,068		191,771
	$	29,591,243	$	1,388,541	$	5,542,779	$	327,688	$	35,134,022	$	1,716,229

	Less than 12 Months				12 Months or More				Total
March 31, 2013	Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses		Estimated Fair Value		Gross Unrealized Losses

Investment securities available-for-sale:
U.S. Government agencies	$	7,592,327	$	33,765	$	0	$	0	$	7,592,327	$	33,765
Brokered certificates of deposit		431,881		1,119		0		0		431,881		1,119
Mortgage-backed securities (Agency)		4,318,861		37,871		0		0		4,318,861		37,871
Collateralized mortgage obligations (Agency)		2,214,670		11,111		1,117,261		4,868		3,331,931		15,979
	$	14,557,739	$	83,866	$	1,117,261	$	4,868	$	15,675,000	$	88,734

The gross unrealized losses are not considered by management to be other-than-temporary impairments. Management has the intent and ability to hold these securities until maturity. In most cases, temporary impairment is caused by market interest rate fluctuations.

Madison Bancorp Inc 10-Q