Mortgage Servicing Rights

12 Months Ended

Sep. 30, 2015

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

MSRs

Loans serviced for Freddie Mac are not included in the accompanying consolidated balance sheets.  The principal amounts of those loans at September 30, 2015, 2014 and 2013 were $331,494,000, $327,594,000 and $325,726,000, respectively.

The following is an analysis of the changes in MSRs for the years ended September 30, 2015, 2014 and 2013 (dollars in thousands):

	2015			2014			2013
Balance, beginning of year	$	1,684		$	2,266		$	2,011
Additions	635			387			728
Amortization	(841		)	(969		)	(948		)
Recovery of valuation allowance	—			—			475
Balance, end of year	$	1,478		$	1,684		$	2,266

At September 30, 2015, 2014 and 2013, the estimated fair value of MSRs totaled $3,095,000, $3,204,000 and $3,129,000, respectively.  The MSRs' fair values for 2015, 2014 and 2013 were estimated using discounted cash flow analyses with average discount rates of 9.52%, 10.04% and 10.04%, respectively, and average prepayment speed factors of 174, 164 and

177, respectively.  At September 30, 2015, 2014 and 2013 there were no valuation allowances on MSRs.