MBS And Other Investments (Tables)

3 Months Ended

Dec. 31, 2015

have been classified according to management’s intent and were as follows as of December 31, 2015 and September 30, 2015 (dollars in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2015
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	786	$	23	$	(1	)	$	808
Private label residential	1,033		850		(5		)	1,878
U.S. Treasury and U.S government agency securities	6,005		19		(25		)	5,999
Total	$	7,824	$	892	$	(31	)	$	8,685

Available for sale
MBS:
U.S. government agencies	$	374	$	28	$	(1	)	$	401
Mutual funds	1,000		—		(39		)	961
Total	$	1,374	$	28	$	(40	)	$	1,362

September 30, 2015
Held to maturity
MBS:
U.S. government agencies	$	828	$	23	$	(1	)	$	850
Private label residential	1,081		894		(12		)	1,963
U.S. Treasury and U.S. government agency securities	6,004		77		—			6,081
Total	$	7,913	$	994	$	(13	)	$	8,894

Available for sale
MBS:
U.S. government agencies	$	387	$	34	$	—		$	421
Mutual funds	1,000		—		(29		)	971
Total	$	1,387	$	34	$	(29	)	$	1,392

Unrealized Gain (Loss) on Investments

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, 2015 (dollars in thousands):



	Less Than 12 Months						12 Months or Longer						Total
	Estimated Fair Value		Gross Unrealized Losses			Quantity	Estimated Fair Value		Gross Unrealized Losses			Quantity	Estimated Fair Value		Gross Unrealized Losses
Held to maturity
MBS:
U.S. government agencies	$	106	$	—		3	$	61	$	(1	)	4	$	167	$	(1	)
Private label residential	42		—			2	155		(5		)	11	197		(5		)
U.S. Treasury and U.S. government agency securities	2,964		(25		)	1	—		—			—	2,964		(25		)
Total	$	3,112	$	(25	)	6	$	216	$	(6	)	15	$	3,328	$	(31	)

Available for sale
MBS:
U.S. government agencies	$	—	$	—		—	$	36	$	(1	)	1	$	36	$	(1	)
Mutual funds	—		—			—	961		(39		)	1	961		(39		)
Total	$	—	$	—		—	$	997	$	(40	)	2	$	997	$	(40	)

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, 2015 (dollars in thousands):



	Less Than 12 Months					12 Months or Longer						Total
	Estimated Fair Value		Gross Unrealized Losses		Quantity	Estimated Fair Value		Gross Unrealized Losses			Quantity	Estimated Fair Value		Gross Unrealized Losses
Held to maturity
MBS:
U.S. government agencies	$	49	$	—	4	$	63	$	(1	)	5	$	112	$	(1	)
Private label residential	1		—		1	157		(12		)	11	158		(12		)
Total	$	50	$	—	5	$	220	$	(13	)	16	$	270	$	(13	)

Available for sale
MBS:
U.S. government agencies	$	1	$	—	1	$	48	$	—		2	$	49	$	—
Mutual funds	—		—		—	971		(29		)	1	971		(29		)
Total	$	1	$	—	1	$	1,019	$	(29	)	3	$	1,020	$	(29	)

Schedule of Significant Inputs Utilized to Measure Estimate of Credit Loss Component on OTTI Securities

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, 2015 and September 30, 2015:



	Range				Weighted
	Minimum		Maximum		Average
December 31, 2015
Constant prepayment rate	6.00	%	15.00	%	9.63	%
Collateral default rate	0.11	%	15.97	%	5.33	%
Loss severity rate	1.00	%	77.00	%	40.54	%

September 30, 2015
Constant prepayment rate	6.00	%	15.00	%	11.49	%
Collateral default rate	0.16	%	14.65	%	6.08	%
Loss severity rate	3.92	%	65.00	%	39.83	%

Schedule of Other than Temporary Impairments

The following table presents the OTTI for the three months ended December 31, 2015 and 2014 (dollars in thousands):

Three Months Ended December 31, 2015

Three Months Ended
December 31, 2014

Held To

Maturity

Available

For Sale

Held To

Maturity

Available

For Sale

Total OTTI

—

Adjustment for portion of OTTI recorded as (transfered from)

other comprehensive income (loss) before income taxes (1)

—

Net OTTI recognized in earnings (2)

—

________________________


(1)	Represents OTTI related to all other factors.


(2)	Represents OTTI related to credit losses.

Other than Temporary Impairment, Credit Losses Recognized in Earnings

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 for the three months ended December 31, 2015 and 2014 (dollars in thousands):



	Three Months Ended December 31,
	2015			2014
Beginning balance of credit loss	$	1,576		$	1,654
Subtractions:
Realized losses previously recorded as credit losses	(28		)	(17		)
Ending balance of credit loss	$	1,548		$	1,637

Schedule of Contractual Maturities of Debt Securities

The contractual maturities of debt securities at December 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	$	—	$	—	$	8	$	8
Due after one year to five years	6,006		6,001		—		—
Due after five to ten years	20		20		—		—
Due after ten years	1,798		2,664		366		393
Total	$	7,824	$	8,685	$	374	$	401