XML 45 R32.htm IDEA: XBRL DOCUMENT v3.5.0.2
Investment Securities (Tables)
 12 Months Ended
Sep. 30, 2016
Investments [Abstract]  
Marketable Securities
Held to maturity and available for sale investment securities were as follows as of September 30, 2016 and 2015 (dollars in thousands):
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Estimated
Fair Value
September 30, 2016
 
 
 
 
 
 
 
Held to Maturity
 
 
 
 
 
 
 
Mortgage-backed securities ("MBS"):
 
 
 
 
 
 
 
U.S. government agencies
$
670

 
$
18

 
$
(1
)
 
$
687

Private label residential
835

 
762

 
(2
)
 
1,595

U.S. Treasury and U.S. government agency securities
6,006

 
107

 
—

 
6,113

Total
$
7,511

 
$
887

 
$
(3
)
 
$
8,395

 
 
 
 
 
 
 
 
Available for Sale
 

 
 

 
 

 
 

MBS: U.S. government agencies
$
336

 
$
30

 
$
—

 
$
366

Mutual funds
1,000

 
—

 
(24
)
 
976

Total
$
1,336

 
$
30

 
$
(24
)
 
$
1,342

 
 
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
 
 
Held to Maturity
 

 
 

 
 

 
 

MBS:
 

 
 

 
 

 
 

U.S. government agencies
$
828

 
$
23

 
$
(1
)
 
$
850

Private label residential
1,081

 
894

 
(12
)
 
1,963

U.S. Treasury and U.S. government agency securities
6,004

 
77

 
—

 
6,081

Total
$
7,913

 
$
994

 
$
(13
)
 
$
8,894

 
 
 
 
 
 
 
 
Available for Sale
 

 
 

 
 

 
 

MBS: U.S. government agencies
$
387

 
$
34

 
$
—

 
$
421

Mutual funds
1,000

 
—

 
(29
)
 
971

Total
$
1,387

 
$
34

 
$
(29
)
 
$
1,392
Unrealized Gain (Loss) on Investments
Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2016 (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
$
9

 
$
—

 
1

 
$
96

 
$
(1
)
 
5

 
$
105

 
$
(1
)
Private label residential
1

 
—

 
1

 
112

 
(2
)
 
10

 
113

 
(2
)
     Total
$
10

 
$
—

 
2

 
$
208

 
$
(3
)
 
15

 
$
218

 
$
(3
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for Sale
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

Mutual funds
$
—

 
$
—

 
—

 
$
976

 
$
(24
)
 
1

 
$
976

 
$
(24
)
     Total
$
—

 
$
—

 
—

 
$
976

 
$
(24
)
 
1

 
$
976

 
$
(24
)



Held to maturity and available for sale investment securities with unrealized losses were as follows as of September 30, 2015 (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
$
49

 
$
—

 
4

 
$
63

 
$
(1
)
 
5

 
$
112

 
$
(1
)
Private label residential
1

 
—

 
1

 
157

 
(12
)
 
11

 
158

 
(12
)
     Total
$
50

 
$
—

 
5

 
$
220

 
$
(13
)
 
16

 
$
270

 
$
(13
)
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Available for Sale
 

 
 

 
 

 
 

 
 

 
 

 
 

 
 

MBS: U.S. government agencies
$
1

 
$
—

 
1

 
$
48

 
$
—

 
2

 
$
49

 
$
—

Mutual funds
—

 
—

 
—

 
971

 
(29
)
 
1

 
971

 
(29
)
     Total
$
1

 
$
—

 
1

 
$
1,019

 
$
(29
)
 
3

 
$
1,020

 
$
(29
)
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 estimates of the credit loss component on OTTI securities as of September 30, 2016, 2015 and 2014:
 
Range
 
Weighted
 
Minimum 
 
Maximum 
 
Average 
September 30, 2016
 
 
 
 
 
Constant prepayment rate
6.00
%
 
15.00
%
 
11.29
%
Collateral default rate
0.07
%
 
14.45
%
 
5.47
%
Loss severity rate
1.00
%
 
73.00
%
 
42.26
%
 
 
 
 
 
 
September 30, 2015
 
 
 
 
 
Constant prepayment rate
6.00
%
 
15.00
%
 
11.49
%
Collateral default rate
0.16
%
 
14.65
%
 
6.08
%
Loss severity rate
3.92
%
 
65.00
%
 
39.83
%
 
 
 
 
 
 
September 30, 2014
 
 
 
 
 
Constant prepayment rate
6.00
%
 
15.00
%
 
10.59
%
Collateral default rate
0.01
%
 
22.34
%
 
7.41
%
Loss severity rate
0.16
%
 
75.17
%
 
45.81
%
Schedule of Other than Temporary Impairments
The following table presents the OTTI losses for the years ended September 30, 2016, 2015 and 2014 (dollars in thousands):
 
2016
 
2015
 
2014
 
Held To
Maturity
 
Available
For Sale
 
Held To
Maturity
 
Available
For Sale
 
Held To Maturity
 
Available For Sale
Total (OTTI) recoveries
$
(29
)
 
$
—

 
$
—

 
$
—

 
$
(83
)
 
$
90

Adjustment for portion of OTTI recorded as (transferred from) other comprehensive income (before income taxes)(1)
(139
)
 
—

 
(13
)
 
—

 
52

 
—

Net (OTTI) recoveries recognized in earnings (2)
$
(168
)
 
$
—

 
$
(13
)
 
$
—

 
$
(31
)
 
$
90

    
________________________
(1)
Represents OTTI related to all other factors.
(2)
Represents 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 for the years ended September 30, 2016, 2015 and 2014 (dollars in thousands):

 
2016

 
2015

 
2014

Balance, beginning of year
$
1,576

 
$
1,654

 
$
2,084

 
 
 
 
 
 
Additions:
 

 
 

 
 

       Credit losses for which OTTI was
          not previously recognized
—

 
—

 
2

       Additional increases to the amount
          related to credit loss for which OTTI
          was previously recognized
170

 
13

 
33

Subtractions:
 
 
 

 
 

       Realized losses previously recorded
          as credit losses
(239
)
 
(91
)
 
(465
)
Recovery of prior credit loss
(2
)
 
—

 
—

Balance, end of year
$
1,505

 
$
1,576

 
$
1,654
Schedule of Contractual Maturities of Debt Securities
The contractual maturities of debt securities at September 30, 2016 are as follows (dollars in thousands).  Expected maturities may differ from scheduled maturities due to 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
$
1

 
$
1

 
$
1

 
$
1

Due after one year to five years
6,008

 
6,115

 
—

 
—

Due after five years to ten years
16

 
16

 
—

 
—

Due after ten years
1,486

 
2,263

 
335

 
365

Total
$
7,511

 
$
8,395

 
$
336

 
$
366