MBS And Other Investments (Tables)

9 Months Ended

Jun. 30, 2014

MBS and other investments have been classified according to management’s intent and are as follows as of June 30, 2014 and September 30, 2013 (dollars in thousands):



	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
June 30, 2014
Held to Maturity
MBS:
U.S. government agencies	$	1,053	$	29	$	(2	)	$	1,080
Private label residential	1,348		853		(5		)	2,196
U.S. agency securities	3,016		1		(8		)	3,009
Total	$	5,417	$	883	$	(15	)	$	6,285

Available for Sale
MBS:
U.S. government agencies	$	1,866	$	102	$	(1	)	$	1,967
Mutual funds	1,000		—		(39		)	961
Total	$	2,866	$	102	$	(40	)	$	2,928

September 30, 2013
Held to Maturity
MBS:
U.S. government agencies	$	1,202	$	31	$	(2	)	$	1,231
Private label residential	1,521		781		(15		)	2,287
U.S. agency securities	14		1		—			15
Total	$	2,737	$	813	$	(17	)	$	3,533

Available for Sale
MBS:
U.S. government agencies	$	2,144	$	87	$	(2	)	$	2,229
Private label residential	804		120		(10		)	914
Mutual funds	1,000		—		(42		)	958
Total	$	3,948	$	207	$	(54	)	$	4,101

Unrealized Gain (Loss) on Investments

The following table summarizes the estimated fair value and gross unrealized losses for all securities and the length of time these unrealized losses existed as of June 30, 2014 (dollars in thousands):



	Less Than 12 Months						12 Months or Longer						Total
	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses
Held to Maturity
MBS:
U.S. government agencies	$	14	$	—		1	$	81	$	(2	)	10	$	95	$	(2	)
Private label residential	9		—			1	156		(5		)	12	165		(5		)
U.S. agency securities	2,995		(8		)	1	—		—			—	2,995		(8		)
Total	$	3,018	$	(8	)	3	$	237	$	(7	)	22	$	3,255	$	(15	)

Available for Sale
MBS:
U.S. government agencies	$	21	$	—		1	$	40	$	(1	)	2	$	61	$	(1	)
Mutual Funds	—		—			—	961		(39		)	1	961		(39		)
Total	$	21	$	—		1	$	1,001	$	(40	)	3	$	1,022	$	(40	)

The following table summarizes the estimated fair value and gross unrealized losses for all securities and the length of time the unrealized losses existed as of September 30, 2013 (dollars in thousands):



	Less Than 12 Months						12 Months or Longer						Total
	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses			Qty	Estimated Fair Value		Gross Unrealized Losses
Held to Maturity
MBS:
U.S. government agencies	$	3	$	—		6	$	88	$	(2	)	4	$	91	$	(2	)
Private label residential	80		(4		)	4	239		(11		)	14	319		(15		)
Total	$	83	$	(4	)	10	$	327	$	(13	)	18	$	410	$	(17	)

Available for Sale
MBS:
U.S. government agencies	$	96	$	(2	)	3	$	—	$	—		1	$	96	$	(2	)
Private label residential	—		—			—	108		(10		)	2	108		(10		)
Mutual Funds	958		(42		)	1	—		—			—	958		(42		)
Total	$	1,054	$	(44	)	4	$	108	$	(10	)	3	$	1,162	$	(54	)

Schedule of Significant Inputs Utilized to Measure Estimate of Credit Loss Component on OTTI Securities

The following table presents a summary of the significant inputs utilized to measure management’s estimate of the credit loss component on OTTI securities as of June 30, 2014 and September 30, 2013:



	Range				Weighted
	Minimum		Maximum		Average
June 30, 2014
Constant prepayment rate	6.00	%	15.00	%	10.01	%
Collateral default rate	0.03	%	17.46	%	6.46	%
Loss severity rate	0.51	%	69.48	%	40.95	%

September 30, 2013
Constant prepayment rate	6.00	%	15.00	%	12.33	%
Collateral default rate	0.73	%	22.53	%	7.84	%
Loss severity rate	20.48	%	75.02	%	52.69	%

Schedule of Other than Temporary Impairments

The following tables present the recoveries (OTTI) for the three and nine months ended June 30, 2014 and 2013 (dollars in thousands):



	Three Months Ended June 30, 2014					Three Months Ended June 30, 2013
	Held To Maturity			Available For Sale		Held To Maturity			Available For Sale
Total recoveries (OTTI)	$	(38	)	$	—	$	—		$	(1	)
Adjustment for portion recorded as (transferred from) other comprehensive income (loss) before taxes (1)	29			—		(2		)	—
Net recoveries (OTTI) recognized in earnings (2)	$	(9	)	$	—	$	(2	)	$	(1	)



	Nine Months Ended June 30, 2014				Nine Months Ended June 30, 2013
	Held To Maturity		Available For Sale		Held To Maturity			Available For Sale
Total recoveries (OTTI)	$	49	$	—	$	(7	)	$	(2	)
Adjustment for portion recorded as (transferred from) other comprehensive income (loss) before taxes (1)	29		—		(30		)	—
Net recoveries (OTTI) recognized in earnings (2)	$	78	$	—	$	(37	)	$	(2	)

________________________


(1)	Represents OTTI related to all other factors.


(2)	Represents net recoveries (OTTI) related to credit losses.

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The following table presents a roll-forward of the credit loss component of held to maturity and available for sale debt securities that have been written down for OTTI with the credit loss component recognized in earnings and the remaining impairment loss related to all other factors recognized in other comprehensive income for the nine months ended June 30, 2014 and 2013 (dollars in thousands):



	Nine Months Ended June 30,
	2014			2013
Beginning balance of credit loss	$	2,084		$	2,703
Additions:
Credit losses for which OTTI was not previously recognized	2			5
Additional increases to the amount related to credit loss for which OTTI was previously recognized	13			39
Subtractions:
Realized losses previously recorded as credit losses	(535		)	(571		)
Recovery of prior credit loss	90			—
Ending balance of credit loss	$	1,654		$	2,176

Schedule of Contractual Maturities of Debt Securities

The contractual maturities of debt securities at June 30, 2014 were as follows (dollars in thousands). Expected maturities may differ from scheduled maturities as a result of the prepayment of principal or call provisions.



	Held to Maturity				Available for Sale
	Amortized Cost		Estimated Fair Value		Amortized Cost		Estimated Fair Value
Due within one year	$	—	$	—	$	—	$	—
Due after one year to five years	3,022		3,015		22		21
Due after five to ten years	10		10		34		35
Due after ten years	2,385		3,260		1,810		1,911
Total	$	5,417	$	6,285	$	1,866	$	1,967

- Definition

Tabular disclosure of marketable securities. This may consist of investments in certain debt and equity securities, short-term investments and other assets.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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