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INVESTMENT SECURITIES
 12 Months Ended
Sep. 30, 2020
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, 2020 
       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  $350   $14   $—   $364 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage-backed securities-residential   9,092    108    (6)   9,194 
Debt securities   5,000    3    —    5,003 
            Total securities available for sale  $14,442   $125   $(6)  $14,561 

 

   September 30, 2020 
       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  $1,453   $11   $(33)  $1,431 
Mortgage-backed securities - commercial   775    —    —    775 
Obligations of U.S. government-sponsored enterprises:                    
Mortgage backed securities - residential   20,456    697    (3)   21,150 
Debt securities   4,500    1    (16)   4,485 
Private label mortgage-backed securities - residential   259    —    (5)   254 
Corporate securities   3,000    —    (196)   2,804 
            Total securities held to maturity  $30,443   $709   $(253)  $30,899 

 

 

   At 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 

 

 

   At 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 

 

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, 2020 are summarized in the following table:

 

   September 30, 2020 
   (In thousands) 
   Amortized   Fair 
   Cost   Value 
Due within 1 year  $—   $— 
Due after 1 but within 5 years   5,000    5,003 
Due after 5 but within 10 years   —    — 
Due after 10 years   —    — 
        Total debt securities   5,000    5,003 
           
Mortgage-backed securities:          
Residential(1)   9,442    9,558 
Commercial   —    — 
        Total  $14,442   $14,561 

 

(1)Available-for-sale mortgage-backed securities – residential include an amortized cost of $350,000 and a fair value of $364,000 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 $9.1 million and a fair value of $9.2 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, 2020 are summarized in the following table:

 

   September 30, 2020 
   Amortized   Fair 
   Cost   Value 
   (In thousands) 
Due within 1 year  $—   $— 
Due after 1 but within 5 years   4,500    4,486 
Due after 5 but within 10 years   3,000    2,803 
Due after 10 years   —    — 
        Total debt securities   7,500    7,289 
           
Mortgage backed securities:          
Residential(1)   22,168    22,835 
Commercial(2)   775    775 
        Total  $30,443   $30,899 

 

(1)Held-to-maturity mortgage-backed securities – residential include an amortized cost of $1.5 million and a fair value of $1.4 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 $20.5 million and a fair value of $21.2 million. Also included are mortgage backed securities issued by non-U.S. government agencies and government-sponsored enterprises with an amortized cost of $259,000 and a fair value of $254,000.

 

(2)Held-to-maturity mortgage-backed securities – commercial include an amortized cost of $775,000 and a fair value of $775,000 for obligations of U.S. government agencies issued by the Small Business Administration.

 

There were $6.1 million in sales of securities from the available-for-sale portfolio during the year ended September 30, 2020 and $6.6 million in sales during the year ended September 30, 2019. There were no sales of securities from the held-to-maturity portfolio during the year ended September 30, 2020 and 2019. The net gain on sales of investment securities totaled $68,000 and $117,000 for the year ended September 30, 2020 and 2019, respectively.

 

As of September 30, 2020 and 2019, securities having an estimated fair value of approximately $22.6 million and $18.9 million, respectively, were pledged to secure public deposits.

 

Details of securities with unrealized losses at September 30, 2020 and 2019 are as follows:

 

      September 30, 2020
      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   $—   $—   $284   $(33)  $284   $(33)
Mortgage-backed securities - commercial   1    —    —    775    —    775    — 
Obligations of U.S. government-sponsored enterprises                                   
Mortgage-backed securities - residential   2    2,854    (3)   533    (6)   3,387    (9)
Debt securities   2    2,484    (16)   —    —    2,484    (16)
Private label mortgage-backed securities residential   1    254    (5)   —    —    254    (5)
Corporate securities   1    —    —    2,804    (196)   2,804    (196)
        Total   9   $5,592   $(24)  $4,396   $(235)  $9,988   $(259)

 

 

      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)

  

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, 2020 and 2019.