Investment Securities (Tables)

3 Months Ended

Dec. 31, 2017

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, 2017 and September 30, 2017 (dollars in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
December 31, 2017
Held to maturity
Mortgage-backed securities ("MBS"):
U.S. government agencies	$	502	$	9	$	—		$	511
Private label residential	580		561		(2		)	1,139
U.S. Treasury and U.S government agency securities	5,995		—		(36		)	5,959
Total	$	7,077	$	570	$	(38	)	$	7,609

Available for sale
MBS: U.S. government agencies	$	260	$	15	$	—		$	275
Mutual funds	1,000		—		(54		)	946
Total	$	1,260	$	15	$	(54	)	$	1,221

September 30, 2017
Held to maturity
MBS:
U.S. government agencies	$	532	$	11	$	(1	)	$	542
Private label residential	599		596		(2		)	1,193
U.S. Treasury and U.S. government agency securities	6,008		10		(9		)	6,009
Total	$	7,139	$	617	$	(12	)	$	7,744

Available for sale
MBS: U.S. government agencies	$	271	$	18	$	—		$	289
Mutual funds	1,000		—		(48		)	952
Total	$	1,271	$	18	$	(48	)	$	1,241

Unrealized Gain (Loss) on Investments

December 31, 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	$	8	$	—		2	$	74	$	—		5	$	82	$	—
Private label residential	—		—			—	81		(2		)	10	81		(2		)
U.S. Treasury and U.S. government agency securities	5,959		(36		)	2	—		—			—	5,959		(36		)
Total	$	5,967	$	(36	)	4	$	155	$	(2	)	15	$	6,122	$	(38	)

Available for sale
Mutual funds	$	—	$	—		—	$	946	$	(54	)	1	$	946	$	(54	)
Total	$	—	$	—		—	$	946	$	(54	)	1	$	946	$	(54	)

Held to maturity and available for sale investment securities with unrealized losses were as follows for September 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	$	—	$	—		—	$	114	$	(1	)	6	$	114	$	(1	)
Private label residential	—		—			—	85		(2		)	10	85		(2		)
U.S. Treasury and U.S. government agency securities	2,984		(9		)	1	—		—			—	2,984		(9		)
Total	$	2,984	$	(9	)	1	$	199	$	(3	)	16	$	3,183	$	(12	)

Available for sale
Mutual funds	$	—	$	—		—	$	952	$	(48	)	1	$	952	$	(48	)
Total	$	—	$	—		—	$	952	$	(48	)	1	$	952	$	(48	)

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, 2017 and 2016:



	Range				Weighted
	Minimum		Maximum		Average
December 31, 2017
Constant prepayment rate	6.00	%	15.00	%	9.91	%
Collateral default rate	—	%	11.08	%	4.77	%
Loss severity rate	—	%	62.00	%	37.32	%

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	%

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, 2017 and 2016 (dollars in thousands):



	Three Months Ended December 31,
	2017			2016
Beginning balance of credit loss	$	1,301		$	1,505
Additions:
Additional increases to the amount related to credit loss for which OTTI was previously recognized	6			—
Subtractions:
Realized losses previously recorded as credit losses	(22		)	(13		)
Recovery of prior credit loss	(26		)	—
Ending balance of credit loss	$	1,259		$	1,492

Schedule of Contractual Maturities of Debt Securities

The contractual maturities of debt securities at December 31, 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 after one year to five years	$	5,997	$	5,961	$	—	$	—
Due after five years to ten years	34		34		—		—
Due after ten years	1,046		1,614		260		275
Total	$	7,077	$	7,609	$	260	$	275