INVESTMENT SECURITIES

The amortized cost, estimated fair value and related unrealized gains and losses on securities available for sale and held to maturity as of March 31, 2014 and September 30, 2013, respectively, were as follows:



Available for sale securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2014
U.S. government agency obligations	$	25,590	$	—	$	1,584	$	24,006
Obligations of states and political subdivisions	11,694		4		508		11,190
Mortgage-backed securities	29,725		75		657		29,143
Non-agency mortgage-backed securities	—		—		—		—
Federal Agricultural Mortgage Corporation	71		—		5		66
Total available for sale securities	$	67,080	$	79	$	2,754	$	64,405

September 30, 2013
U.S. government agency obligations	$	29,702	$	—	$	1,836	$	27,866
Obligations of states and political subdivisions	11,647		—		677		10,970
Mortgage-backed securities	40,378		140		885		39,633
Non-agency mortgage-backed securities	1,842		—		616		1,226
Total available for sale securities	$	83,569	$	140	$	4,014	$	79,695



Held to maturity securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
March 31, 2014
Obligations of states and political subdivisions	1,477		2		2		1,477
Mortgage-backed securities	$	7,057	$	15	$	37	7,035
Total held to maturity securities	$	8,534	$	17	$	39	$	8,512

September 30, 2013
Obligations of states and political subdivisions	—		—		—		—
Mortgage-backed securities	—		—		—		—
Total held to maturity securities	$	—	$	—	$	—	$	—

The Company evaluates securities for other-than-temporary impairment at least on a quarterly basis, and more frequently when economic or market concerns warrant such evaluation. As part of such monitoring, the credit quality of individual securities and their issuers are assessed. Significant inputs used to measure the amount related to credit loss include, but are not limited to, default and delinquency rates of underlying collateral, remaining credit support, and historical loss severities. Adjustments to market value that are considered temporary are recorded as separate components of equity, net of tax. If an impairment of a security is identified as other-than-temporary based on information available, such as the decline in the credit worthiness of the issuer, external market ratings, or the anticipated or realized elimination of associated dividends, such impairments are further analyzed to determine if credit loss exists. If there is a credit loss, it will be recorded in the Company's consolidated statement of operations. Losses other than credit will continue to be recognized in other comprehensive income (loss), net of tax. Unrealized losses reflected in the preceding tables have not been included in results of operations because the unrealized loss was not deemed other-than-temporary. Management has determined that more likely than not, the Company neither intends to sell, nor will it be required to sell each debt security before its anticipated recovery.

A summary of the amount of other-than-temporary impairment related to credit losses on available for sale securities that have been recognized in earnings follows:



	Six months ended March 31, 2014			Six months ended March 31, 2013
Beginning balance of the amount of OTTI related to credit losses	$	1,250		$	3,740
Credit portion of OTTI on securities for which OTTI was not previously recognized	91			664
Cash payments received on a security in excess of the security’s book value adjusted for the previously recognized credit portion of OTTI	(13		)	—
Credit portion of OTTI on securities in default for which OTTI was previously recognized	—			—
Credit portion of OTTI previously recognized on securities sold during the period	(1,328		)	—
Ending balance of the amount of OTTI related to credit losses	$	—		$	4,404

During the quarter and six months ended March 31, 2013, the Bank recognized $372 of other-than-temporary impairment in earnings on a non-agency MBS, which brought the amortized cost of this specific non-agency MBS to $0. To date, the Bank had recognized $2,171 of other-than-temporary impairment in earnings on this specific aforementioned non-agency mortgage-backed security. During the six months ended March 31, 2014, the Bank received $13 in cash payments from this specific non-agency MBS that was in default.

During the quarter ended March 31, 2014, the Bank sold the entire remaining balance of the non-agency mortgage-backed security portfolio consisting of two securities, which had a book value of $1,500, and recognized a loss of $183 in earnings. To date, the Bank had recognized $1,328 of other-than-temporary impairment in earnings on these two remaining non-agency mortgage-backed securities.

The Bank has pledged certain of its U.S. Agency securities as collateral against a borrowing line with the Federal Reserve Bank. However, as of March 31, 2014, there were no borrowings outstanding on the Federal Reserve line of credit.