FAIR VALUE DISCLOSURES (Tables)

9 Months Ended

Jun. 30, 2015

Schedule of assets measured at fair value on a recurring basis

	Fair Value at June 30, 2015
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Securities available for sale:
Obligations of U.S. government-sponsored enterprises:
Mortgage-backed securities-residential	$	5,897	$	—	$	5,897	$	—
Private label mortgage-backed securities-residential		207		—		207		—
Total securities available for sale	$	6,104	$	—	$	6,104	$	—

	Fair Value at September 30, 2014
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)
Securities available for sale:
Obligations of U.S. government agencies:
Mortgage-backed securities - residential	$	1,295	$	—	$	1,295	$	—
Obligations of U.S. government-sponsored enterprises:
Mortgage-backed securities-residential		10,369		—		10,369		—
Private label mortgage-backed securities-residential		406		—		406		—
Total securities available for sale	$	12,070	$	—	$	12,070	$	—

Schedule of assets measured at fair value on a non-recurring basis

	Fair Value at June 30, 2015
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)

Impaired loans	$	1,453	$	—	$	—	$	1,453
Other real estate owned		15,747		—		—		15,747
	$	17,200	$	—	$	—	$	17,200

	Fair Value at September 30, 2014
	Total		Level 1		Level 2		Level 3
	(Dollars in thousands)

Impaired loans	$	1,801	$	—	$	—	$	1,801
Other real estate owned		17,342		—		—		17,342
	$	19,143	$	—	$	—	$	19,143

Schedule of quantitative information about assets measured at fair value on a nonrecurring bassis for which Level 3 inputs were used to determine fair value

Quantitative Information about Level 3 Fair Value Measurements
(Dollars in thousands)
	Fair Value		Valuation
June 30, 2015	Estimate		Techniques	Unobservable Input	Range (Weighted Average)

Impaired loans	$	1,453	Appraisal of collateral ⁽¹⁾	Appraisal adjustments (2)	0.0% to -18.0% (-6.0%)
Other real estate owned	$	15,747	Appraisal of collateral ⁽¹⁾	Liquidation expenses (2)	0.0% to -41.2% (-16.7%)
Quantitative Information about Level 3 Fair Value Measurements (Dollars in thousands)
		Fair Value	Valuation
September 30, 2014		Estimate	Techniques	Unobservable Input	Range (Weighted Average)

Impaired loans	$	1,801	Appraisal of collateral ⁽¹⁾	Appraisal adjustments (2)	0% to -21.0% (-10.7%)
Other real estate owned	$	17,342	Appraisal of collateral ⁽¹⁾	Liquidation expenses (2)	-3.2% to -39.1% (-15.6%)

(1)

Fair value is generally determined through independent appraisals for the underlying collateral, which generally include various level 3 inputs which are not identifiable.

(2)

Appraisals may be adjusted by management for qualitative factors such as economic conditions and estimated liquidation expenses. The range and weighted average of liquidation expenses and other appraisal adjustments are presented as a percent of the appraisal.

Schedule of the carrying amount, fair value, and placement in the fair value hierarchy of financial instruments carried at cost or amortized cost

	Carrying		Fair		Fair Value Measurement Placement
	Value		Value		(Level 1)		(Level 2)		(Level 3)
	(Dollars in thousands)
June 30, 2015
Financial instruments - assets
Investment securities held-to-maturity	$	53,977	$	53,974	$	—	$	53,974	$	—
Loans		417,413		422,797		—		—		422,797

Financial instruments - liabilities
Certificates of deposit		132,586		133,883		—		133,883		—
Borrowings		43,113		43,650		—		43,650		—

September 30, 2014
Financial instruments - assets
Investment securities held to maturity	$	48,963	$	48,822		—	$	48,822	$	—
Loans		404,195		407,947		—		—		407,947

Financial instruments - liabilities
Certificate of deposit		149,875		151,652		—		151,652		—
Borrowings		30,500		31,045		—		31,045		—