Investment Securities (Tables)

6 Months Ended

Mar. 31, 2016

Held to maturity and available for sale investment securities have been classified according to management’s intent and were as follows as of March 31, 2016 and September 30, 2015 (dollars in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
March 31, 2016
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	745	$	21	$	(1	)	$	765
Private label residential	993		799		(6		)	1,786
U.S. Treasury and U.S government agency securities	6,005		72		—			6,077
Total	$	7,743	$	892	$	(7	)	$	8,628

Available for sale
MBS:
U.S. government agencies	$	361	$	30	$	—		$	391
Mutual funds	1,000		—		(26		)	974
Total	$	1,361	$	30	$	(26	)	$	1,365

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 March 31, 2016 (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	$	91	$	—		2	$	59	$	(1	)	4	$	150	$	(1	)
Private label residential	40		(1		)	3	163		(5		)	12	203		(6		)
Total	$	131	$	(1	)	5	$	222	$	(6	)	16	$	353	$	(7	)

Available for sale
Mutual funds	$	—	$	—		—	$	974	$	(26	)	1	$	974	$	(26	)
Total	$	—	$	—		—	$	974	$	(26	)	1	$	974	$	(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, 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 March 31, 2016 and September 30, 2015:



	Range				Weighted
	Minimum		Maximum		Average
March 31, 2016
Constant prepayment rate	6.00	%	15.00	%	9.16	%
Collateral default rate	0.24	%	17.64	%	5.70	%
Loss severity rate	7.00	%	77.00	%	41.97	%

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 and six months ended March 31, 2016 and 2015 (dollars in thousands):



	Three Months Ended March 31, 2016					Three Months Ended March 31, 2015
	Held To Maturity			Available For Sale		Held To Maturity			Available For Sale
Total OTTI	$	(24	)	$	—	$	—		$	—
Adjustment for portion of OTTI recorded as (transfered from) other comprehensive income (loss) before income taxes (1)	1			—		(1		)	—
Net OTTI recognized in earnings (2)	$	(23	)	$	—	$	(1	)	$	—



	Six Months Ended March 31, 2016					Six Months Ended March 31, 2015
	Held To Maturity			Available For Sale		Held To Maturity			Available For Sale
Total OTTI	$	(24	)	$	—	$	—		$	—
Adjustment for portion recorded as (transferred from) other comprehensive income (loss) before income taxes (1)	1			—		(1		)	—
Net OTTI recognized in earnings (2)	$	(23	)	$	—	$	(1	)	$	—

________________________


(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 six months ended March 31, 2016 and 2015 (dollars in thousands):



	Six Months Ended March 31,
	2016			2015
Beginning balance of credit loss	$	1,576		$	1,654
Additions:
Credit losses for which OTTI was not previously recognized	—			1
Additional increases to the amount related to credit loss for which OTTI was previously recognized	20			—
Subtractions:
Realized losses previously recorded as credit losses	(59		)	(38		)
Ending balance of credit loss	$	1,537		$	1,617

Schedule of Contractual Maturities of Debt Securities

The contractual maturities of debt securities at March 31, 2016 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	$	—	$	—	$	5	$	6
Due after one year to five years	6,005		6,077		—		—
Due after five to ten years	22		23		—		—
Due after ten years	1,716		2,528		356		385
Total	$	7,743	$	8,628	$	361	$	391