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INVESTMENT SECURITIES
 12 Months Ended
Sep. 30, 2016
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES

NOTE D - INVESTMENT SECURITIES

 

The amortized cost, gross unrealized gains or losses and fair value of the Company’s investment securities available-for-sale and held-to-maturity are as follows:

 

   September 30, 2016 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government agencies:                    
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential  $5,075   $52   $—   $5,127 
Private label mortgage-backed securities-residential   108    —    (1)   107 
            Total securities available for sale  $5,183   $52   $(1)  $5,234 

 

   September 30, 2016 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (In thousands) 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $4,383   $171   $(90)  $4,464 
Mortgage-backed securities - commercial   1,034    —    (1)   1,033 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage backed securities - residential   40,024    1,098    (16)   41,106 
Debt securities   4,000    1    —    4,001 
Private label mortgage-backed securities - residential   493    —    (6)   487 
Corporate securities   3,000    —    (242)   2,758 
            Total securities held to maturity  $52,934   $1,270   $(355)  $53,849 

 

   At September 30, 2015 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (In thousands) 
Securities available-for-sale:                    
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential  $5,839   $82   $(7)  $5,914 
Private label mortgage-backed securities-residential   151    —    (1)   150 
            Total securities available-for-sale  $5,990   $82   $(8)  $6,064 

 

   At September 30, 2015 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (In thousands) 
Securities held-to-maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $5,414   $156   $(99)  $5,471 
Mortgage-backed securities - commercial   1,101    —    (2)   1,099 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage backed securities - residential   37,563    647    (67)   38,143 
Debt securities   5,000    2    (25)   4,977 
Private label mortgage-backed securities - residential   536    1    (1)   536 
Corporate securities   3,000    22    —    3,022 
            Total securities held-to-maturity  $52,614   $828   $(194)  $53,248 

 

The contractual maturities of mortgage-backed securities generally exceed 10 years; however, the effective lives are expected to be shorter due to anticipated prepayments. The amortized cost and fair value of the Company’s securities available-for-sale at September 30, 2016 are summarized in the following table:

 

   September 30, 2016 
   (In thousands) 
   Amortized   Fair 
   Cost   Value 
Due within 1 year  $—   $— 
Due after 1 but within 5 years   —    — 
Due after 5 but within 10 years   —    — 
Due after 10 years   —    — 
        Total debt securities   —    — 
           
Mortgage-backed securities:          
Residential(1)   5,183    5,234 
Commercial   —    — 
        Total  $5,183   $5,234 

 

(1)Available-for-sale mortgage-backed securities – residential include an amortized cost of $5.1 million and a fair value of $5.1 million for obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation. Also included are residential mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $108,000 and fair value of $107,000.

 

The maturities of the debt securities and the mortgage-backed securities held to maturity at September 30, 2016 are summarized in the following table:

 

   September 30, 2016 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $—   $— 
Due after 1 but within 5 years   2,000    2,000 
Due after 5 but within 10 years   5,000    4,759 
Due after 10 years   —    — 
        Total debt securities   7,000    6,759 
           
Mortgage backed securities:          
Residential(1)   44,900    46,057 
Commercial(2)   1,034    1,033 
        Total  $52,934   $53,849 

 

 

(1)Held-to-maturity mortgage-backed securities – residential include an amortized cost of $4.4 million and a fair value of $4.5 million for obligations of U.S. government agencies issued by the Government National Mortgage Association and obligations of U.S. government-sponsored enterprises issued by Federal National Mortgage Association and Federal Home Loan Mortgage Corporation which had an amortized cost of $40.0 million and a fair value of $41.1 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $493,000 and a fair value of $487,000.

 

(2)Held-to-maturity mortgage-backed securities – commercial include an amortized cost of $1.0 million and a fair value of $1.0 million for obligations of U.S. government agencies issued by the Small Business Administration.

 

There were sales of $6.3 million and $5.4 million from the available-for-sale portfolios during the years ended September 30, 2016 and 2015, respectively. The gross gains on sales of the available-for-sale securities totaled $72,000 and $42,000 for the year ended September 30, 2016 and 2015, respectively.

 

There were no sales of securities from the held-to-maturity portfolios during the years ended September 30, 2016 and 2015.

 

As of September 30, 2016 and 2015, securities having an estimated fair value of approximately $27.8 million and $27.0 million, respectively, were pledged to secure public deposits.

 

Details of securities with unrealized losses at September 30, 2016 and 2015 are as follows:

 

       September 30, 2016 
       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
       (Dollars in thousands) 
Obligations of U.S. government agencies:                                   
Mortgage-backed securities - residential   2   $—   $—   $849   $(90)  $849   $(90)
Mortgage-backed securities - commercial   1    1,033    (1)   —    —    1,033    (1)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   2    1,376    (3)   1,942    (13)   3,318    (16)
Private label mortgage-backed securities residential   3    172    (4)   330    (3)   502    (7)
Corporate securities   1    —    —    2,758    (242)   2,758    (242)
        Total   9   $2,581   $(8)  $5,879   $(348)  $8,460   $(356)

 

       September 30, 2015 
       Less Than 12 Months   12 Months Or Greater   Total 
   Number of   Fair   Unrealized   Fair   Unrealized   Fair   Unrealized 
   Securities   Value   Losses   Value   Losses   Value   Losses 
       (Dollars in thousands) 
Obligations of U.S. government agencies:                                   
Mortgage-backed securities- residential   3   $—   $—   $2,254   $(99)  $2,254   $(99)
Mortgage-backed securities - commercial   1    1,099    (2)   —    —    1,099    (2)
Obligations of U.S. government-sponsored enterprises                                   
Mortgage backed securities- residential   7    4,424    (34)   8,688    (40)   13,112    (74)
Debt securities   1    —    —    1,975    (25)   1,975    (25)
Private label mortgage-backed securities- residential   2    —    —    223    (2)   223    (2)
        Total   14   $5,523   $(36)  $13,140   $(166)  $18,663   $(202)

 

The investment securities listed above currently have fair values less than amortized cost and therefore contain unrealized losses. The Company evaluated these securities and determined that the decline in value was primarily related to fluctuations in the interest rate environment and were not related to any company or industry specific event.

 

The Company anticipates full recovery of amortized costs with respect to these securities. The Company does not intend to sell these securities and has determined that it is not more likely than not that the Company would be required to sell these securities prior to maturity or market price recovery. Management has considered factors regarding other than temporarily impaired securities and determined that there are no securities with impairment that is other than temporary as of September 30, 2016 and 2015.