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INVESTMENT SECURITIES

12 Months Ended

Sep. 30, 2017

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, 2017
						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		$	9,442			$	9			$	(125	)		$	9,326
Debt securities			2,500				—				(51	)			2,449
Private label mortgage-backed securities-residential			40				—				—				40
Total securities available for sale		$	11,982			$	9			$	(176	)		$	11,815

		September 30, 2017
						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		$	3,466			$	123			$	(96	)		$	3,493
Mortgage-backed securities - commercial			968				—				(10	)			958
Obligations of U.S. government-sponsored enterprises:
Mortgage backed securities - residential			39,016				349				(251	)			39,114
Debt securities			4,461				—				(24	)			4,437
Private label mortgage-backed securities - residential			457				—				(2	)			455
Corporate securities			3,000				—				(216	)			2,784
Total securities held to maturity		$	51,368			$	472			$	(599	)		$	51,241

		At September 30, 2016
						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		$	5,075			$	52			$	—			$	5,127
Private label mortgage-backed securities-residential			108				—				(1	)			107
Total securities available-for-sale		$	5,183			$	52			$	(1	)		$	5,234

		At 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

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, 2017 are summarized in the following table:

		September 30, 2017
		(In thousands)
		Amortized				Fair
		Cost				Value
Due within 1 year		$	—			$	—
Due after 1 but within 5 years			—				—
Due after 5 but within 10 years			2,500				2,449
Due after 10 years			—				—
Total debt securities			2,500				2,449

Mortgage-backed securities:
Residential⁽¹⁾			9,482				9,366
Commercial			—				—
Total		$	11,982			$	11,815

⁽¹⁾

Available-for-sale mortgage-backed securities – residential include an amortized cost of $9.4 million and a fair value of $9.3 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 $40,000 and fair value of $40,000.

The maturities of the debt securities and the mortgage-backed securities held to maturity at September 30, 2017 are summarized in the following table:

		September 30, 2017
		Amortized				Fair
		Cost				Value
		(In thousands)
Due within 1 year		$	2,000			$	1,996
Due after 1 but within 5 years			—				—
Due after 5 but within 10 years			4,499				4,280
Due after 10 years			962				945
Total debt securities			7,461				7,221

Mortgage backed securities:
Residential⁽¹⁾			42,939				43,062
Commercial⁽²⁾			968				958
Total		$	51,368			$	51,241

⁽¹⁾

Held-to-maturity mortgage-backed securities – residential include an amortized cost of $3.5 million and a fair value of $3.5 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 $39.0 million and a fair value of $39.1 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $457,000 and a fair value of $455,000.

⁽²⁾

Held-to-maturity mortgage-backed securities – commercial include an amortized cost of $968,000 and a fair value of $958,000 for obligations of U.S. government agencies issued by the Small Business Administration.

There were no sales of securities from the available-for-sale portfolios during the year ended September 30, 2017 and there were sales totaling $6.3 million from the available-for-sale portfolio during the year ended September 30, 2016. The gross gains on sales of available-for-sale securities totaled $72,000 for the year ended September 30, 2016.

There were no sales of securities from the held-to-maturity portfolios during the years ended September 30, 2017 and 2016.

As of September 30, 2017 and 2016, securities having an estimated fair value of approximately $21.8 million and $27.8 million, respectively, were pledged to secure public deposits.

Details of securities with unrealized losses at September 30, 2017 and 2016 are as follows:

						September 30, 2017
						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			$	—			$	—			$	605			$	(96	)		$	605			$	(96	)
Mortgage-backed securities - commercial			1				958				(10	)			—				—				958				(10	)
Obligations of U.S. government-sponsored enterprises
Mortgage-backed securities - residential			20				6,582				(92	)			21,713				(284	)			28,295				(376	)
Debt securities			5				4,890				(71	)			1,996				(4	)			6,886				(75	)
Private label mortgage-backed securities residential			2				—				—				193				(2	)			193				(2	)
Corporate securities			1				—				—				2,784				(216	)			2,784				(216	)
Total			31			$	12,430			$	(173	)		$	27,291			$	(602	)		$	39,721			$	(775	)

						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	)

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, 2017 and 2016.