Fair Value Measurements (Tables)

9 Months Ended

Jun. 30, 2015

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

June 30, 2015 (in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total
Available for sale investment securities
MBS:
U.S. government agencies	$	—	$	438	$	—	$	438
Mutual funds	963		—		—		963
Total	$	963	$	438	$	—	$	1,401

There were no transfers between Level 1, Level 2 and Level 3 during the three and nine months ended June 30, 2015.

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



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total
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 June 30, 2015, and the total losses resulting from these estimated fair value adjustments for the nine months ended June 30, 2015 (in thousands):



	Estimated Fair Value
	Level 1		Level 2		Level 3		Total Losses
Impaired loans:
Mortgage loans:
One-to four-family	$	—	$	—	$	3,174	$	201
Multi-family	—		—		3,269		—
Commercial	—		—		4,837		—
Land	—		—		2,861		28
Consumer loans:
Home equity and second mortgage	—		—		283		27
Other					11		8
Total impaired loans (1)	—		—		14,435		264
Investment securities – held to maturity (2):
MBS - private label residential	—		31		—		5
OREO and other repossessed assets (3)	—		—		8,063		490
Total	$	—	$	31	$	22,498	$	759

_______________________


(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. Fair value is the recorded investment less the related allowance.


(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 and liabilities 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 (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 costs to sell, if applicable. Fair value is the recorded investment less the related allowance.


(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 June 30, 2015 (dollars in thousands):



	Estimated Fair Value		Valuation Technique(s)	Unobservable Input(s)	Range
Impaired loans	$	14,435	Market approach	Appraised value of underlying collateral less selling costs	NA

OREO and other repossessed assets	$	8,063	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

The estimated fair values of financial instruments were as follows as of June 30, 2015 and September 30, 2014 (in thousands):



	June 30, 2015
			Fair Value Measurements Using:
	Recorded Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	76,173	$	76,173	$	76,173	$	—	$	—
CDs held for investment	47,053		47,053		47,053		—		—
Investment securities	9,419		10,359		3,716		6,643		—
FHLB stock	2,699		2,699		2,699		—		—
Loans receivable, net	594,376		601,820		—		—		601,820
Loans held for sale	3,835		3,918		3,918		—		—
Accrued interest receivable	2,132		2,132		2,132		—		—

Financial liabilities
Deposits:
Non-interest-bearing demand	$	122,133	$	122,133	$	122,133	$	—	$	—
Interest-bearing	532,585		533,174		376,597		—		156,577
Total deposits	654,718		655,307		498,730		—		156,577
FHLB advances	45,000		46,758		—		46,758		—
Accrued interest payable	288		288		288		—		—



	September 30, 2014
			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		—		—
Investment 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		—		—