Fair Value Measurement (Tables)

12 Months Ended

Sep. 30, 2015

Fair Value, Assets Measured on Recurring Basis

assets measured at estimated fair value on a recurring basis at September 30, 2015 and 2014 are as follows (dollars in thousands):



	Estimated Fair Value
September 30, 2015	Level 1		Level 2		Level 3		Total
Available for sale investment securities
MBS: U.S. government agencies	$	—	$	421	$	—	$	421
Mutual funds	971		—		—		971
Total	$	971	$	421	$	—	$	1,392




September 30, 2014
Available for sale investment securities
MBS: U.S. government agencies	$	—	$	1,899	$	—	$	1,899
Mutual funds	958		—		—		958
Total	$	958	$	1,899	$	—	$	2,857

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, 2015, and the total losses resulting from these estimated fair value adjustments for the year ended September 30, 2015 (dollars in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total Losses
Impaired loans:
Mortgage loans:
One-to four-family	$	—	$	—	$	2,663	$	220
Multi-family	—		—		3,261		—
Commercial	—		—		5,388		—
Land	—		—		654		145
Consumer loans:
Home equity and second mortgage	—		—		383		50
Other					12		9
Total impaired loans (1)	—		—		12,361		424

Investment securities – held to maturity (2):
MBS - Private label residential	—		31		—		13
OREO and other repossessed assets (3)	—		—		7,854		644
Total	$	—	$	31	$	20,215	$	1,081

_______________________


(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, 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

Investment securities – held to maturity (2):
MBS - 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 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, 2015 (dollars in thousands):



	Estimated Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
Impaired loans	$	12,361	Market approach	Appraised value less selling costs	NA

OREO and other repossessed assets	7,854		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, 2015 (dollars in thousands):



			Fair Value Measurements Using:
	Recorded Amount		Estimated Fair Value		Level 1			Level 2		Level 3
Financial Assets
Cash and cash equivalents	$	92,289	$	92,289	$	92,289		$	—	$	—
CDs held for investment	48,611		48,611		48,611			—		—
Investment securities	9,305		10,286		3,996		6,676	6,290		—
FHLB stock	2,699		2,699		2,699			—		—
Loans receivable, net	604,277		614,734		—			—		614,734
Loans held for sale	3,051		3,139		3,139			—		—
Accrued interest receivable	2,170		2,170		2,170			—		—

Financial Liabilities
Deposits:
Non-interest bearing demand	141,388		141,388		141,388			—		—
Interest-bearing	537,524		538,092		383,419			—		154,673
Total deposits	678,912		679,480		524,807			—		154,673
FHLB advances	45,000		46,742		—			46,742		—
Accrued interest payable	289		289		289			—		—

The 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		—		—
Invesment securities	8,155		9,131		958		8,173		—
FHLB stock	5,246		5,246		5,246		—		—
Loans receivable, net	564,853		571,411		—		—		571,411
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		—		—