Investment Securities (Tables)

3 Months Ended

Dec. 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 December 31, 2016 and September 30, 2016 (dollars in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2016
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	636	$	15	$	(1	)	$	650
Private label residential	775		709		(5		)	1,479
U.S. Treasury and U.S government agency securities	6,007		19		(21		)	6,005
Total	$	7,418	$	743	$	(27	)	$	8,134

Available for sale
MBS: U.S. government agencies	$	323	$	22	$	(1	)	$	344
Mutual funds	1,000		—		(56		)	944
Total	$	1,323	$	22	$	(57	)	$	1,288

September 30, 2016
Held to maturity
MBS:
U.S. government agencies	$	670	$	18	$	(1	)	$	687
Private label residential	835		762		(2		)	1,595
U.S. Treasury and U.S. government agency securities	6,006		107		—			6,113
Total	$	7,511	$	887	$	(3	)	$	8,395

Available for sale
MBS: U.S. government agencies	$	336	$	30	$	—		$	366
Mutual funds	1,000		—		(24		)	976
Total	$	1,336	$	30	$	(24	)	$	1,342

Unrealized Gain (Loss) on Investments

December 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	$	50	$	—		2	$	91	$	(1	)	5	$	141	$	(1	)
Private label residential	13		—			1	103		(5		)	11	116		(5		)
U.S. Treasury and U.S. government agency securities	2,971		(21		)	1	—		—			—	2,971		(21		)
Total	$	3,034	$	(21	)	4	$	194	$	(6	)	16	$	3,228	$	(27	)

Available for sale
MBS: U.S. government agency	$	35	$	(1	)	1	$	—	$	—		—	$	35	$	(1	)
Mutual funds	—		—			—	944		(56		)	1	944		(56		)
Total	$	35	$	(1	)	1	$	944	$	(56	)	1	$	979	$	(57	)

Held to maturity and available for sale investment securities with unrealized losses were as follows for September 30, 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	$	9	$	—	1	$	96	$	(1	)	5	$	105	$	(1	)
Private label residential	1		—		1	112		(2		)	10	113		(2		)
Total	$	10	$	—	2	$	208	$	(3	)	15	$	218	$	(3	)

Available for sale
Mutual funds	$	—	$	—	—	$	976	$	(24	)	1	$	976	$	(24	)
Total	$	—	$	—	—	$	976	$	(24	)	1	$	976	$	(24	)

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 estimates of the credit loss component on OTTI securities as of December 31, 2016 and September 30, 2016:



	Range				Weighted
	Minimum		Maximum		Average
December 31, 2016
Constant prepayment rate	6.00	%	15.00	%	12.28	%
Collateral default rate	0.34	%	13.35	%	5.66	%
Loss severity rate	5.00	%	81.00	%	46.05	%

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	%

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, 2016 and 2015 (dollars in thousands):



	Three Months Ended December 31,
	2016			2015
Beginning balance of credit loss	$	1,505		$	1,576
Subtractions:
Realized losses previously recorded as credit losses	(13		)	(28		)
Ending balance of credit loss	$	1,492		$	1,548

Schedule of Contractual Maturities of Debt Securities

The contractual maturities of debt securities at December 31, 2016 were as follows (dollars in thousands). Expected maturities may differ from scheduled maturities due to 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	$	14	$	14	$	—	$	—
Due after one year to five years	5,995		5,993		—		—
Due after five to ten years	15		15		—		—
Due after ten years	1,394		2,112		323		344
Total	$	7,418	$	8,134	$	323	$	344