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INVESTMENT SECURITIES

12 Months Ended

Sep. 30, 2019

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, 2019
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
		(In thousands)
Securities available-for-sale:
Obligations of U.S. government agencies:
Mortgage backed securities - residential		$	480			$	15			$	—			$	495
Obligations of U.S. government-sponsored enterprises:
Mortgage-backed securities-residential			14,663				80				(35	)			14,708
Debt securities			1,500				—				—				1,500
Total securities available for sale		$	16,643			$	95			$	(35	)		$	16,703

		September 30, 2019
						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		$	445			$	—			$	(54	)		$	391
Mortgage-backed securities - commercial			842				—				(6	)			836
Obligations of U.S. government-sponsored enterprises:
Mortgage backed securities - residential			22,363				276				(47	)			22,592
Debt securities			2,468				10				—				2,478
Private label mortgage-backed securities - residential			363				7				—				370
Corporate securities			3,000				—				(323	)			2,677
Total securities held to maturity		$	29,481			$	293			$	(430	)		$	29,344

		At September 30, 2018
						Gross				Gross
		Amortized				Unrealized				Unrealized				Fair
		Cost				Gains				Losses				Value
		(In thousands)
Securities available-for-sale:
Obligations of U.S. government agencies:
Mortgage backed securities - residential		$	1,463			$	40			$	(8	)		$	1,495
Obligations of U.S. government-sponsored enterprises:
Mortgage-backed securities-residential		$	19,262			$	13			$	(662	)		$	18,613
Debt securities			2,500				—				(139	)			2,361
Total securities available-for-sale		$	23,225			$	53			$	(809	)		$	22,469

		At September 30, 2018
						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		$	568			$	—			$	(93	)		$	475
Mortgage-backed securities - commercial			904				—				(9	)			895
Obligations of U.S. government-sponsored enterprises:
Mortgage backed securities - residential			26,316				4				(867	)			25,453
Debt securities			2,464				—				(142	)			2,322
Private label mortgage-backed securities - residential			393				1				—				394
Corporate securities			3,000				—				(388	)			2,612
Total securities held-to-maturity		$	33,645			$	5			$	(1,499	)		$	32,151

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 maturities of the debt securities and certain information regarding to the mortgage-backed securities available-for-sale at September 30, 2019 are summarized in the following table:

		September 30, 2019
		(In thousands)
		Amortized				Fair
		Cost				Value
Due within 1 year		$	—			$	—
Due after 1 but within 5 years			1,500				1,500
Due after 5 but within 10 years			—				—
Due after 10 years			—				—
Total debt securities			1,500				1,500

Mortgage-backed securities:
Residential⁽¹⁾			15,143				15,203
Commercial			—				—
Total		$	16,643			$	16,703

⁽¹⁾

Available-for-sale mortgage-backed securities – residential include an amortized cost of $480,000 and a fair value of $495,000 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 $14.7 million and a fair value of $14.7 million. There were no residential mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises.

The maturities of the debt securities and certain information regarding to the mortgage-backed securities held to maturity at September 30, 2019 are summarized in the following table:

		September 30, 2019
		Amortized				Fair
		Cost				Value
		(In thousands)
Due within 1 year		$	—			$	—
Due after 1 but within 5 years			1,499				1,500
Due after 5 but within 10 years			3,969				3,655
Due after 10 years			—				—
Total debt securities			5,468				5,155

Mortgage backed securities:
Residential⁽¹⁾			23,171				23,353
Commercial⁽²⁾			842				836
Total		$	29,481			$	29,344

⁽¹⁾

Held-to-maturity mortgage-backed securities – residential include an amortized cost of $445,000 and a fair value of $391,000 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 $22.4 million and a fair value of $22.6 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $363,000 and a fair value of $370,000.

⁽²⁾

Held-to-maturity mortgage-backed securities – commercial include an amortized cost of $842,000 and a fair value of $836,000 for obligations of U.S. government agencies issued by the Small Business Administration.

There were $6.6 million sales of securities from the available-for-sale portfolio during the year ended September 30, 2019 and no sales during the year ended September 30, 2018. There were no sales of securities from the held-to-maturity portfolio during the year ended September 30, 2019, while there were $3.4 million in sales from the held-to-maturity portfolio during the year ended September 30, 2018. 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 on sales of investment securities totaled $117,000 and $107,000 for the year ended September 30, 2019 and 2018, respectively.

As of September 30, 2019 and 2018, securities having an estimated fair value of approximately $18.9 million and $25.0 million, respectively, were pledged to secure public deposits.

Details of securities with unrealized losses at September 30, 2019 and 2018 are as follows:

						September 30, 2019
						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			$	—			$	—			$	392			$	(54	)		$	392			$	(54	)
Mortgage-backed securities - commercial			1				—				—				836				(6	)			836				(6	)
Obligations of U.S. government-sponsored enterprises
Mortgage-backed securities - residential			13				1,219				(4	)			14,429				(78	)			15,648				(82	)
Corporate securities			1				—				—				2,678				(323	)			2,678				(323	)
Total			17			$	1,219			$	(4	)		$	18,335			$	(461	)		$	19,554			$	(465	)

						September 30, 2018
						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			$	532			$	(8	)		$	475			$	(93	)		$	1,007			$	(101	)
Mortgage-backed securities - commercial			1				—				—				895				(9	)			895				(9	)
Obligations of U.S. government-sponsored enterprises
Mortgage backed securities- residential			34				11,336				(312	)			30,605				(1,217	)			41,941				(1,529	)
Debt securities			4				—				—				4,683				(281	)			4,683				(281	)
Private label mortgage-backed securities- residential			1				—				—				104				—				104				—
Corporate securities			1				—				—				2,612				(388	)			2,612				(388	)
Total			44			$	11,868			$	(320	)		$	39,374			$	(1,988	)		$	51,242			$	(2,308	)

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, 2019 and 2018.