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INVESTMENT SECURITIES
 3 Months Ended
Dec. 31, 2017
Investments, Debt and Equity Securities [Abstract]  
INVESTMENT SECURITIES

NOTE H - INVESTMENT SECURITIES

 

The following tables summarize the amortized cost and fair values of securities available for sale at December 31, 2017 and September 30, 2017:

 

   December 31, 2017 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (Dollars in thousands) 
Securities available for sale:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $1,559   $67   $—   $1,626 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   19,123    85    (215)   18,993 
Debt securities   2,500    —    (74)   2,426 
Private label mortgage-backed securities-residential   26    —    —    26 
            Total securities available for sale  $23,208   $152   $(289)  $23,071 

 

   September 30, 2017 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (Dollars 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 

 

The maturities of the debt securities and mortgage-backed securities available for sale at December 31, 2017 are summarized in the following table:

 

   December 31, 2017 
   Amortized   Fair 
   Cost   Value 
   (Dollars in thousands) 
Due within 1 year  $—   $— 
Due after 1 but within 5 years   1,500    1,435 
Due after 5 but within 10 years   1,000    991 
Due after 10 years   —    — 
        Total debt securities   2,500    2,426 
           
Mortgage-backed securities:          
Residential   20,708    20,645 
Commercial   —    — 
        Total  $23,208   $23,071 

 

The Company adopted ASU 2017-12 during the three months ended December 31, 2017 and reclassified ten mortgage-backed securities totaling $12.6 million from the held-to-maturity portfolio to the available-for-sale portfolio that are eligible to be hedged under the last-of-layer method established by the ASU. These securities had unrealized gains of $104,000 at December 31, 2017.

 

The following tables summarize the amortized cost and fair values of securities held to maturity at December 31, 2017 and September 30, 2017:

 

   December 31, 2017 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (Dollars in thousands) 
Securities held to maturity:                    
Obligations of U.S. government agencies:                    
Mortgage-backed securities - residential  $631   $—   $(97)  $534 
Mortgage-backed securities - commercial   951    —    (9)   942 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed-securities - residential   25,014    43    (334)   24,723 
Debt securities   4,462    —    (34)   4,428 
Private label mortgage-backed securities - residential   452    —    (2)   450 
Corporate securities   3,000    —    (290)   2,710 
            Total securities held to maturity  $34,510   $43   $(766)  $33,787 

 

   September 30, 2017 
       Gross   Gross     
   Amortized   Unrealized   Unrealized   Fair 
   Cost   Gains   Losses   Value 
   (Dollars 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 

 

 

The maturities of the debt securities and the mortgage backed securities held to maturity at December 31, 2017 are summarized in the following table:

 

   December 31, 2017 
   Amortized   Fair 
   Cost   Value 
   (Dollars in  thousands) 
Due within 1 year  $2,000   $1,997 
Due after 1 but within 5 years   —    — 
Due after 5 but within 10 years   4,499    4,204 
Due after 10 years   963    937 
        Total debt securities   7,462    7,138 
           
Mortgage-backed securities:          
Residential   26,097    25,707 
Commercial   951    942 
        Total  $34,510   $33,787 

 

There were $3.3 million in sales of mortgage-backed securities from the held to maturity portfolio during the three months ended December 31, 2017. In accordance with ASC 320 “Investments- Debt and Equity Securities”, sales from the held to maturity portfolio occurred after the Company had already collected a substantial portion (at least 85 percent) of the principal outstanding at acquisition due to prepayments on the debt security. The net gain from the sales of these securities totaled $107,000.