Fair Value Measurements

12 Months Ended

Mar. 31, 2012

FAIR VALUE MEASUREMENTS [Abstract]

Fair Value Disclosures [Text Block]

FAIR VALUE MEASUREMENTS

On April 1, 2008, the Company adopted ASC Topic 820 which, among other things, defines fair value; establishes a consistent framework for measuring fair value; and expands disclosure for each major asset and liability category measured at fair value on either a recurring or nonrecurring basis.  ASC 820 clarifies that fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is thus a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. As a basis for considering such assumptions, ASC 820 establishes a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

• Level 1— Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

• Level 2— Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

• Level 3— Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table presents, by valuation hierarchy, assets that are measured at fair value on a recurring basis as of March 31, 2012 and 2011, and that are included in the Company's Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at March 31, 2012, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	491	$	491
Investment securities:
Available for sale:
U.S. Treasuries	3,361		—		—		3,361
Government National Mortgage Association	—		27,612		—		27,612
Federal Home Loan Mortgage Corporation	—		5,305		—		5,305
Federal National Mortgage Association	—		6,141		—		6,141
Corporates	—		1,949		—		1,949
Other	—		40,686		52		40,738
Total available for sale securities	$	3,361	$	81,693	$	52	$	85,106
Total assets	$	3,361	$	81,693	$	543	$	85,597
	Fair Value Measurements at March 31, 2011, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	626	$	626
Investment securities:
Available for sale:
U.S. Treasuries	2,544		—		—		2,544
Government National Mortgage Association	—		30,197		—		30,197
Federal Home Loan Mortgage Corporation	—		1,851		—		1,851
Federal National Mortgage Association	—		4,223		—		4,223
Other	—		14,691		45		14,736
Total available for sale securities	$	2,544	$	50,962	$	45	$	53,551
Total assets	$	2,544	$	50,962	$	671	$	54,177

 Instruments for which unobservable inputs are significant to their fair value measurement (i.e., Level 3) include mortgage servicing rights.  Level 3 assets accounted for 0.1% of the Company's total assets at March 31, 2012 and 2011.

 The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next that are related to the observable inputs to a fair value measurement may result in a reclassification from one hierarchy level to another.

Below is a description of the methods and significant assumptions utilized in estimating the fair value of available-for-sale securities and mortgage servicing rights (“MSR”):

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy. Level 1 securities include highly liquid government securities and exchange-traded securities. 

If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to market information, models also incorporate transaction details, such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy and primarily include such instruments as mortgage-related securities and corporate debt.

In the period ended March 31, 2012, there were no transfers of investments between the Level 1 and Level 2 categories.

In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. In valuing certain securities, the determination of fair value may require benchmarking to similar instruments or analyzing default and recovery rates. Quoted price information for the MSRs is not available. Therefore, MSRs are valued using market-standard models to model the specific cash flow structure. Key inputs to the model consist of principal balance of loans being serviced, servicing fees and prepayment rates.

 The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The following table presents information for assets classified by the Company within Level 3 of the valuation hierarchy for the years ended March 31, 2012 and 2011:

$ in thousands	Mortgage Servicing Rights			Securities Available for Sale
Beginning balance, April 1, 2011	$	626		$	45
Additions	—			6
Total unrealized loss	(135		)	—
Ending balance, March 31, 2012	$	491		$	51
$ in thousands	Mortgage Servicing Rights			Securities Available for Sale
Beginning balance, April 1, 2010	$	721		$	45
Total unrealized loss	(95		)	—
Ending balance, March 31, 2011	$	626		$	45

Certain assets are measured at fair value on a non-recurring basis. Such instruments are subject to fair value adjustments under certain circumstances (e.g. when there is evidence of impairment). The following table presents assets and liabilities that were measured at fair value on a non-recurring basis as of March 31, 2012 and 2011, and that are included in the Company's Consolidated Statements of Financial Condition as these dates:

	Fair Value Measurements at March 31, 2012, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Loans held for sale	$	—	$	29,626	—		$	29,626
Certain impaired loans	$	—	$	—	17,784		$	17,784
	Fair Value Measurements at March 31, 2011, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Loans held for sale	$	—	$	9,205	$	—	$	9,205
Certain impaired loans (1)	$	—	$	—	$	38,962	$	38,962
(1) The Company adjusted the presentation of certain impaired loans recorded at at March 31, 2011. After review, it was determined that the appropriate fair value measurement of impaired loans was level 3.

Loans held-for-sale are carried at the lower of cost or market value. The valuation methodology for loans held for sale for the period ended March 31, 2012 was based upon significant observable inputs such as offered purchase prices, broker price opinions or discounted cash flows.

The fair values of collateral-dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate market data.