Investment Securities (Tables)

9 Months Ended

Jun. 30, 2017

Held to maturity and available for sale investment securities have been classified according to management’s intent and were as follows as of June 30, 2017 and September 30, 2016 (dollars in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2017
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	565	$	12	$	(1	)	$	576
Private label residential	671		651		(4		)	1,318
U.S. Treasury and U.S government agency securities	6,008		16		(6		)	6,018
Total	$	7,244	$	679	$	(11	)	$	7,912

Available for sale
MBS: U.S. government agencies	$	288	$	21	$	—		$	309
Mutual funds	1,000		—		(49		)	951
Total	$	1,288	$	21	$	(49	)	$	1,260

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

June 30, 2017 (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	$	46	$	(1	)	2	$	81	$	—		5	$	127	$	(1	)
Private label residential	21		(1		)	2	92		(3		)	11	113		(4		)
U.S. Treasury and U.S. government agency securities	2,987		(6		)	1	—		—			—	2,987		(6		)
Total	$	3,054	$	(8	)	5	$	173	$	(3	)	16	$	3,227	$	(11	)

Available for sale
Mutual funds	$	—	$	—		—	$	951	$	(49	)	1	$	951	$	(49	)
Total	$	—	$	—		—	$	951	$	(49	)	1	$	951	$	(49	)

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 June 30, 2017 and 2016:



	Range				Weighted
	Minimum		Maximum		Average
June 30, 2017
Constant prepayment rate	6.00	%	15.00	%	11.54	%
Collateral default rate	0.09	%	9.88	%	4.66	%
Loss severity rate	6.00	%	62.00	%	41.93	%

June 30, 2016
Constant prepayment rate	6.00	%	15.00	%	11.17	%
Collateral default rate	0.06	%	15.44	%	5.50	%
Loss severity rate	1.00	%	75.00	%	41.23	%

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 nine months ended June 30, 2017 and 2016 (dollars in thousands):



	Nine Months Ended June 30,
	2017			2016
Beginning balance of credit loss	$	1,505		$	1,576
Additions:
Additional increases to the amount related to credit loss for which OTTI was previously recognized	—			22
Subtractions:
Realized losses previously recorded as credit losses	(48		)	(74		)
Ending balance of credit loss	$	1,457		$	1,524

Schedule of Contractual Maturities of Debt Securities

The contractual maturities of debt securities at June 30, 2017 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		6,005		—		—
Due after five to ten years	14		14		—		—
Due after ten years	1,221		1,879		288		309
Total	$	7,244	$	7,912	$	288	$	309