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 September 30, 2015 and September 30, 2014, respectively, were as follows:



Available for sale securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
September 30, 2015
U.S. government agency obligations	$	15,240	$	—	$	220	$	15,020
Obligations of states and political subdivisions	27,573		81		247		27,407
Mortgage-backed securities	37,451		133		144		37,440
Federal Agricultural Mortgage Corporation	71		—		17		54
Total available for sale securities	$	80,335	$	214	$	628	$	79,921

September 30, 2014
U.S. government agency obligations	$	23,076	$	—	$	973	$	22,103
Obligations of states and political subdivisions	11,432		17		255		11,194
Mortgage-backed securities	29,058		138		369		28,827
Federal Agricultural Mortgage Corporation	71		—		6		65
Total available for sale securities	$	63,637	$	155	$	1,603	$	62,189



Held to maturity securities	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
September 30, 2015
Obligations of states and political subdivisions	$	1,319	$	3	$	4	$	1,318
Mortgage-backed securities	6,693		208		—		6,901
Total held to maturity securities	$	8,012	$	211	$	4	$	8,219
September 30, 2014
Obligations of states and political subdivisions	$	1,465	$	4	$	5	$	1,464
Mortgage-backed securities	7,320		33		9		7,344
Total held to maturity securities	$	8,785	$	37	$	14	$	8,808

The estimated fair value of securities at September 30, 2015, by contractual maturity, is shown below. Expected maturities will differ from contractual maturities on mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Expected maturities may differ from contractual maturities on certain agency and municipal securities due to the call feature.



Available for sale securities	Amortized Cost		Estimated Fair Value
Due after one year through five years	$	6,451	$	6,437
Due after five years through ten years	22,667		22,457
Due after ten years	51,217		51,027
Total available for sale securities	$	80,335	$	79,921



Held to maturity securities	Amortized Cost		Estimated Fair Value
Due after one year through five years	$	1,144	$	1,143
Due after five years through ten years	175		175
Due after ten years	6,693		6,901
Total held to maturity securities	$	8,012	$	8,219

Securities with unrealized losses at September 30, 2015 and 2014, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, were as follows:



	Less than 12 Months				12 Months or More				Total
Available for sale securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
2015
U.S. government agency obligations	$	4,960	$	14	$	10,060	$	206	$	15,020	$	220
Obligations of states and political subdivisions	13,864		155		2,234		92		16,098		247
Mortgage-backed securities	22,018		93		3,590		51		25,608		144
Federal Agricultural Mortgage Corporation	—		—		54		17		54		17
Total temporarily impaired	$	40,842	$	262	$	15,938	$	366	$	56,780	$	628
2014
U.S. government agency obligations	$	—	$	—	$	22,103	$	973	$	22,103	$	973
Obligations of states and political subdivisions	574		1		8,817		254		9,391		255
Mortgage-backed securities	8,167		66		12,518		303		20,685		369
Federal Agricultural Mortgage Corporation	65		6		—		—		65		6
Total temporarily impaired	$	8,806	$	73	$	43,438	$	1,530	$	52,244	$	1,603



	Less than 12 Months				12 Months or More				Total
Held to maturity securities	Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss
2015
Obligations of states and political subdivisions	$	904	$	4	$	—	$	—	$	904	$	4
Mortgage-backed securities	—		—		—		—		—		—
Total temporarily impaired	$	904	$	4	$	—	$	—	$	904	$	4
2014
Obligations of states and political subdivisions	$	345	$	5	$	—	$	—	$	345	$	5
Mortgage-backed securities	3,364		9		—		—		3,364		9
Total temporarily impaired	$	3,709	$	14	$	—	$	—	$	3,709	$	14

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 issuer is assessed. Significant inputs used to measure the amount of other-than-temporary impairment related to credit loss include, but are not limited to, default and delinquency rates of the underlying collateral, remaining credit support, and historical loss severities. Adjustments to market value of available for sale securities that are considered temporary are recorded as separate components of equity, net of tax. If the unrealized loss of a security is identified as other-than-temporary based on information available, such as the decline in the creditworthiness 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. Unrealized losses on available for sale securities, 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, and therefore recovery of cost will occur.

A summary of the amount of other-than-temporary impairment related to credit losses on available for sale securities that have been recognized in net income for the years ended September 30, 2015 and 2014 follows:



	2015		2014
Beginning balance of the amount of OTTI related to credit losses	$	—	$	1,250
Credit portion of OTTI on securities for which OTTI was not previously recognized			91
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	$	—	$	—

The Bank has pledged certain of its U.S. Government Agency securities as collateral against a borrowing line of credit with the Federal Reserve Bank. However, as of September 30, 2015, there were no borrowings outstanding on this Federal Reserve Bank line of credit. The Bank has pledged certain of its U.S. Government Agency securities as collateral against specific municipal deposits.