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IMPAIRMENT OF INVESTMENT SECURITIES

9 Months Ended

Jun. 30, 2016

Schedule of Investments [Abstract]

IMPAIRMENT OF INVESTMENT SECURITIES

NOTE I – IMPAIRMENT OF INVESTMENT SECURITIES

The Company recognizes credit-related other-than-temporary impairment on debt securities in earnings while noncredit-related other-than-temporary impairment on debt securities not expected to be sold are recognized in other comprehensive income (“OCI”).

The Company reviews its investment portfolio on a quarterly basis for indications of impairment. This review includes analyzing the length of time and the extent to which the fair value has been lower than the cost, the financial condition and near-term prospects of the issuer, including any specific events which may influence the operations of the issuer and the intent and ability to hold the investment for a period of time sufficient to allow for any anticipated recovery in the market. The Company evaluates its intent and ability to hold debt securities based upon its investment strategy for the particular type of security and its cash flow needs, liquidity position, capital adequacy and interest rate risk position. In addition, the risk of future other-than-temporary impairment may be influenced by prolonged recession in the U.S. economy, changes in real estate values and interest deferrals.

Investment securities with fair values more than their amortized cost contain unrealized gains. The Company also evaluated the securities with unrealized losses. The following tables present the gross unrealized losses and fair value at June 30, 2016 and September 30, 2015 for both available for sale and held to maturity securities by investment category and time frame for which the loss has been outstanding:

						June 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			$	—			$	—			$	884			$	(92	)		$	884			$	(92	)
Obligations of U.S. government-sponsored enterprises
Mortgage-backed securities - residential			1				—				—				1,962				(6	)			1,962				(6	)
Private label mortgage-backed securities residential			3				504				(8	)			16				(1	)			520				(9	)
Corporate securities			1				2,821				(179	)			—				—				2,821				(179	)
Total			7			$	3,325			$	(187	)		$	2,862			$	(99	)		$	6,187			$	(286	)

						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 Company also evaluated securities with unrealized losses. At June 30, 2016 and September 30, 2015, there were seven and fourteen, respectively, investment securities with unrealized losses. The Company anticipates full recovery of amortized costs with respect to these securities with unrealized losses. 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 June 30, 2016 and September 30, 2015.