have been classified according to management’s intent and are as follows as of December 31, 2014 and September 30, 2014 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2014
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	956	$	26	$	(1	)	$	981
Private label residential	1,229		978		(8		)	2,199
U.S. agency securities	3,016		12		—			3,028
Total	$	5,201	$	1,016	$	(9	)	$	6,208

Available for sale
MBS:
U.S. government agencies	$	489	$	40	$	(1	)	$	528
Mutual funds	1,000		—		(34		)	966
Total	$	1,489	$	40	$	(35	)	$	1,494

September 30, 2014
Held to maturity
MBS:
U.S. government agencies	$	1,002	$	32	$	(2	)	$	1,032
Private label residential	1,280		965		(7		)	2,238
U.S. agency securities	3,016		1		(13		)	3,004
Total	$	5,298	$	998	$	(22	)	$	6,274

Available for sale
MBS:
U.S. government agencies	$	1,801	$	100	$	(2	)	$	1,899
Mutual funds	1,000		—		(42		)	958
Total	$	2,801	$	100	$	(44	)	$	2,857

The following table summarizes the estimated fair value and gross unrealized losses for all securities and the length of time these unrealized losses existed as of December 31, 2014 (dollars in thousands):



	Less Than 12 Months					12 Months or Longer						Total
	Estimated Fair Value		Gross Unrealized Losses		Qty	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses
Held to maturity
MBS:
U.S. government agencies	$	—	$	—	—	$	73	$	(1	)	8	$	73	$	(1	)
Private label residential	1		—		1	151		(8		)	11	152		(8		)
Total	$	1	$	—	1	$	224	$	(9	)	19	$	225	$	(9	)

Available for sale
MBS:
U.S. government agencies	$	7	$	—	2	$	57	$	(1	)	2	$	64	$	(1	)
Mutual funds	—		—		—	966		(34		)	1	966		(34		)
Total	$	7	$	—	2	$	1,023	$	(35	)	3	$	1,030	$	(35	)

The following table summarizes the estimated fair value and gross unrealized losses for all securities and the length of time these unrealized losses existed as of September 30, 2014 (dollars in thousands):



	Less Than 12 Months						12 Months or Longer						Total
	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses
Held to maturity
MBS:
U.S. government agencies	$	—	$	—		—	$	76	$	(2	)	8	$	76	$	(2	)
Private label residential	9		—			1	188		(7		)	11	197		(7		)
U.S. agency securities	2,989		(13		)	1	—		—			—	2,989		(13		)
Total	$	2,998	$	(13	)	2	$	264	$	(9	)	19	$	3,262	$	(22	)

Available for sale
MBS:
U.S. government agencies	$	19	$	—		1	$	40	$	(2	)	1	$	59	$	(2	)
Mutual funds	—		—			—	958		(42		)	1	958		(42		)
Total	$	19	$	—		1	$	998	$	(44	)	2	$	1,017	$	(44	)

The Company has evaluated these securities and has determined that the decline in their value is temporary. The unrealized losses are primarily due to changes in market interest rates and spreads in the market for mortgage-related products. The fair value of these securities is expected to recover as the securities approach their maturity dates and/or as the pricing spreads narrow on mortgage-related securities. The Company has the ability and the intent to hold the investments until the market value recovers. Furthermore, as of December 31, 2014, management does not have the intent to sell any of the securities classified as available for sale where the estimated fair value is below the recorded value and believes that it is more likely than not that the Company will not have to sell such securities before a recovery of cost or recorded value if previously written down.

In accordance with GAAP, the Company bifurcates OTTI into (1) amounts related to credit losses which are recognized through earnings and (2) amounts related to all other factors which are recognized as a component of other comprehensive income (loss).

To determine the component of the gross OTTI related to credit losses, the Company compared the amortized cost basis of each OTTI security to the present value of its revised expected cash flows, discounted using its pre-impairment yield. The revised expected cash flow estimates for individual securities are based primarily on an analysis of default rates and prepayment speeds included in third-party analytic reports. Significant judgment by management is required in this analysis that includes, but is not limited to, assumptions regarding the collectability of principal and interest, net of related expenses, on the underlying loans.

The following table presents a summary of the significant inputs utilized to measure management’s estimate of the credit loss component on OTTI securities as of December 31, 2014 and September 30, 2014:



	Range				Weighted
	Minimum		Maximum		Average
December 31, 2014
Constant prepayment rate	6.00	%	15.00	%	9.87	%
Collateral default rate	0.01	%	16.97	%	5.96	%
Loss severity rate	0.15	%	60.00	%	35.81	%

September 30, 2014
Constant prepayment rate	6.00	%	15.00	%	10.59	%
Collateral default rate	0.01	%	22.34	%	7.41	%
Loss severity rate	0.16	%	75.17	%	45.81	%

The following tables present the OTTI for the three months ended December 31, 2014 and 2013 (in thousands):



	Three Months Ended December 31, 2014				Three Months Ended December 31, 2013
	Held To Maturity		Available For Sale		Held To Maturity			Available For Sale
Total OTTI	$	—	$	—	$	(3	)	$	—
Adjustment for portion recorded as other comprehensive income (loss) before taxes (1)	—		—		1			—
Net OTTI recognized in earnings (2)	$	—	$	—	$	(2	)	$	—

________________________


(1)	Represents OTTI related to all other factors.


(2)	Represents net recoveries (OTTI) related to credit losses.

The following table presents a roll-forward of the credit loss component of held to maturity and available for sale debt securities that have been written down for OTTI with the credit loss component recognized in earnings and the remaining impairment loss related to all other factors recognized in other comprehensive income (loss) for the three months ended December 31, 2014 and 2013 (in thousands):



	Three Months Ended December 31,
	2014			2013
Beginning balance of credit loss	$	1,654		$	2,084
Additions:
Credit losses for which OTTI was not previously recognized	—			2
Subtractions:
Realized losses previously recorded as credit losses	(17		)	(40		)
Ending balance of credit loss	$	1,637		$	2,046

There was a $45,000 gain on sale of investment securities available for sale for the three months ended December 31, 2014. There was no realized loss on sale of securities for the three months ended December 31, 2013. During the three months ended December 31, 2014, the Company recorded a net $17,000 realized loss (as a result of the securities being deemed worthless) on 11 held to maturity residential MBS, of which the entire amount had been recognized previously as a credit loss. During the three months ended December 31, 2013, the Company recorded a $40,000 realized loss (as a result of the securities being deemed worthless) on 14 held to maturity residential MBS and six available for sale residential MBS, of which the entire amount had been recognized previously as a credit loss.

The amortized cost of residential mortgage-backed and agency securities pledged as collateral for public fund deposits, federal treasury tax and loan deposits, FHLB collateral, retail repurchase agreements and other non-profit organization deposits totaled $4.63 million and $6.22 million at December 31, 2014 and September 30, 2014, respectively.

The contractual maturities of debt securities at December 31, 2014 were as follows (dollars in thousands). Expected maturities may differ from scheduled maturities as a result of the prepayment of principal or call provisions.



	Held to Maturity				Available for Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	—	$	—	$	—	$	—
Due after one year to five years	3,020		3,032		21		17
Due after five to ten years	26		26		—		—
Due after ten years	2,155		3,150		468		511
Total	$	5,201	$	6,208	$	489	$	528