Fair Value Measurement (Tables)

12 Months Ended

Sep. 30, 2014

Fair Value, Assets Measured on Recurring Basis

The following table summarizes the balances of assets and liabilities measured at estimated fair value on a recurring basis at September 30, 2014 (dollars in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total
Available for Sale Securities
MBS: U.S. government agencies	$	—	$	1,899	$	—	$	1,899
Mutual funds	958		—		—		958
Total	$	958	$	1,899	$	—	$	2,857

There were no transfers among Level 1, Level 2 and Level 3 during the year ended September 30, 2014.

The following table summarizes the balances of assets and liabilities measured at estimated fair value on a recurring basis at September 30, 2013 (dollars in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total
Available for Sale Securities
MBS:
U.S. government agencies	$	—	$	2,229	$	—	$	2,229
Private label residential	—		914		—		914
Mutual funds	958		—		—		958
Total	$	958	$	3,143	$	—	$	4,101

Balances of Assets Measured at Estimated Fair Value, Nonrecurring Basis

The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2014, and the total losses resulting from these estimated fair value adjustments for the year ended September 30, 2014 (dollars in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total Losses
Impaired loans:
Mortgage Loans:
One-to four-family	$	—	$	—	$	3,655	$	1,106
Multi-family	—		—		3,278		—
Commercial	—		—		5,334		463
Land	—		—		3,779		260
Consumer loans:
Home equity and second mortgage	—		—		284		47
Total impaired loans (1)	—		—		16,330		1,876
MBS – held to maturity (2):
Private label residential	—		40		—		31
OREO and other repossessed assets (3)	—		—		9,092		605
Total	$	—	$	40	$	25,422	$	2,512

_______________________


(1)	The loss represents charge-offs on collateral dependent loans for estimated fair value adjustments based on the estimated fair value of the collateral net of estimated costs to sell, if applicable.


(2)	The loss represents OTTI credit-related charges on held-to-maturity MBS.


(3)	The loss represents adjustments resulting from management’s periodic reviews of the recorded value to determine whether the property continues to be recorded at the lower of its recorded book value or estimated fair value, net of estimated costs to sell.

The following table summarizes the balances of assets measured at estimated fair value on a non-recurring basis at September 30, 2013 and the total losses resulting from these estimated fair value adjustments for the year ended September 30, 2013 (dollars in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total Losses
Impaired loans:
Mortgage Loans:
One-to four-family	$	—	$	—	$	3,042	$	769
Multi-family	—		—		4,850		—
Commercial	—		—		12,868		667
Construction – speculative one-to four-family	—		—		599		—
Land	—		—		969		2,307
Consumer loans:
Home equity and second mortgage	—		—		242		184
Total impaired loans (1)	—		—		22,570		3,927
MBS – held to maturity (2):
Private label residential	—		83		—		45
OREO and other repossessed assets (3)	—		—		11,720		2,064
Total	$	—	$	83	$	34,290	$	6,036

_______________________


(1)	The loss represents charge-offs on collateral dependent loans for estimated fair value adjustments based on the estimated fair value of the collateral, net of estimated cost to sell, if applicable.


(2)	The loss represents OTTI credit-related charges on held-to-maturity MBS.


(3)	The loss represents adjustments resulting from management’s periodic reviews of the recorded value to determine whether the property continues to be recorded at the lower of its recorded book value or estimated fair value, net of estimated costs to sell.

Level 3 Fair Value Measurements, Nonrecurring Basis

The following table presents quantitative information about Level 3 fair value measurements for financial instruments measured at fair value on a non-recurring basis as of September 30, 2014 (dollars in thousands):



	Estimated Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
Impaired loans	$	16,330	Market approach	Appraised value less selling costs	NA

OREO and other repossessed assets	$	9,092	Market approach	Lower of appraised value or listing price less selling costs	NA

Balances of Assets and Liabilities Measured at Estimated Fair Value, Recurring Basis

he estimated fair values of financial instruments were as follows as of September 30, 2014 (dollars in thousands):



			Fair Value Measurements Using:
	Recorded Amount		Estimated Fair Value		Level 1			Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	72,354	$	72,354	$	72,354		$	—	$	—
CDs held for investment	35,845		35,845		35,845			—		—
Securities	8,155		9,131		958		6,676	8,173		—
FHLB stock	5,246		5,246		5,246			—		—
Loans receivable, net	564,853		563,802		—			—		563,802
Loans held for sale	899		921		921			—		—
Accrued interest receivable	1,910		1,910		1,910			—		—

Financial Liabilities
Deposits:
Non-interest bearing demand	$	106,417	$	106,417	$	106,417		$	—	$	—
Interest-bearing	508,699		509,406		345,412			—		163,994
Total deposits	615,116		615,823		451,829			—		163,994
FHLB advances	45,000		47,279		—			47,279		—
Accrued interest payable	298		298		298			—		—

The estimated fair values of financial instruments were as follows as of September 30, 2013 (dollars in thousands):



			Fair Value Measurements Using:
	Recorded Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	94,496	$	94,496	$	94,496	$	—	$	—
CDs held for investment	30,042		30,042		30,042		—		—
Securities	6,838		7,634		973		6,661		—
FHLB stock	5,452		5,452		5,452		—		—
Loans receivable, net	546,193		514,616		—		—		514,616
Loans held for sale	1,911		1,973		1,973		—		—
Accrued interest receivable	1,972		1,972		1,972		—		—

Financial Liabilities
Deposits:
Non-interest bearing demand	$	87,657	$	87,657	$	87,657	$	—	$	—
Interest-bearing	520,605		522,021		346,455		—		175,566
Total deposits	608,262		609,678		434,112		—		175,566
FHLB advances	45,000		48,445		—		48,445		—
Accrued interest payable	320		320		320		—		—