have been classified according to management’s intent and are as follows as of March 31, 2015 and September 30, 2014 (in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2015
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	914	$	26	$	(1	)	$	939
Private label residential	1,176		975		(7		)	2,144
U.S. agency securities	3,016		36		—			3,052
Total	$	5,106	$	1,037	$	(8	)	$	6,135

Available for sale
MBS:
U.S. government agencies	$	468	$	44	$	(1	)	$	511
Mutual funds	1,000		—		(25		)	975
Total	$	1,468	$	44	$	(26	)	$	1,486

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 March 31, 2015 (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	$	—	$	—	—	$	70	$	(1	)	5	$	70	$	(1	)
Private label residential	1		—		1	146		(7		)	10	147		(7		)
Total	$	1	$	—	1	$	216	$	(8	)	15	$	217	$	(8	)

Available for sale
MBS:
U.S. government agencies	$	4	$	—	2	$	53	$	(1	)	2	$	57	$	(1	)
Mutual funds	—		—		—	975		(25		)	1	975		(25		)
Total	$	4	$	—	2	$	1,028	$	(26	)	3	$	1,032	$	(26	)

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 March 31, 2015, 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 March 31, 2015 and September 30, 2014:



	Range				Weighted
	Minimum		Maximum		Average
March 31, 2015
Constant prepayment rate	6.00	%	15.00	%	9.40	%
Collateral default rate	0.09	%	16.68	%	6.26	%
Loss severity rate	0.98	%	63.18	%	41.54	%

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 and six months ended March 31, 2015 and 2014 (in thousands):



	Three Months Ended March 31, 2015					Three Months Ended March 31, 2014
	Held To Maturity			Available For Sale		Held To Maturity		Available For Sale
Total (OTTI) recoveries	$	—		$	—	$	89	$	—
Adjustment for portion recorded as (transfered from) other comprehensive income (loss) before taxes (1)	(1		)	—		—		—
Net (OTTI) recoveries recognized in earnings (2)	$	(1	)	$	—	$	89	$	—



	Six Months Ended March 31, 2015					Six Months Ended March 31, 2014
	Held To Maturity			Available For Sale		Held To Maturity		Available For Sale
Total (OTTI) recoveries	$	—		$	—	$	86	$	—
Adjustment for portion recorded as (transferred from) other comprehensive income (loss) before taxes (1)	(1		)	—		1		—
Net (OTTI) recoveries recognized in earnings (2)	$	(1	)	$	—	$	87	$	—

________________________


(1)	Represents (OTTI) recoveries 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 six months ended March 31, 2015 and 2014 (in thousands):



	Six Months Ended March 31,
	2015			2014
Beginning balance of credit loss	$	1,654		$	2,084
Additions:
Credit losses for which OTTI was not previously recognized	1			2
Subtractions:
Realized losses previously recorded as credit losses	(38		)	(492		)
Recovery of prior credit loss	—			87
Ending balance of credit loss	$	1,617		$	1,681

There was no realized gain on the sale of investment securities for the three months ended March 31, 2015. There was a $45,000 realized gain on the sale of investment securities for the six months ended March 31, 2015. There was a $32,000 realized loss on the sale of investment securities for both the three and six months ended March 31, 2014. During the three months ended March 31, 2015, the Company recorded a net $21,000 realized loss (as a result of the securities being deemed worthless) on 12 held to maturity residential MBS, of which the entire amount had been recognized previously as a credit loss. During the six months ended March 31, 2015, the Company recorded a net $38,000 realized loss (as a result of securities being deemed worthless) on 14 held to maturity residential MBS, of which the entire amount had been recognized previously as a credit loss. During the three months ended March 31, 2014, the Company recorded a $365,000 realized loss (as a result of the securities being deemed worthless) on 12 held to maturity residential MBS and five available for sale residential MBS, of which the entire amount had been recognized previously as a credit loss. During the six months ended March 31, 2014, the Company recorded a net $405,000 realized loss (as a result of securities being deemed worthless) on 15 held to maturity residential MBS and six available for sale MBS, of which the entire amount had previously been recognized 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 $4.50 million and $6.22 million at March 31, 2015 and September 30, 2014, respectively.

The contractual maturities of debt securities at March 31, 2015 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	3,019		3,055		15		15
Due after five to ten years	25		25		—		—
Due after ten years	2,062		3,055		453		496
Total	$	5,106	$	6,135	$	468	$	511