Investment Securities

6 Months Ended

Mar. 31, 2021

Investments Debt And Equity Securities [Abstract]

Investment Securities

5. Investment Securities

The amortized cost, gross unrealized gains and losses, and fair value of investment securities available for sale are summarized as follows (in thousands):

	March 31, 2021
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	31,568	$	959	$	(61	)	$	32,466
Freddie Mac		26,697		744		(11	)		27,430
Governmental National Mortgage Association		10,457		242		(35	)		10,664
Total mortgage-backed securities		68,722		1,945		(107	)		70,560
Obligations of states and political subdivisions		17,259		461		—			17,720
US government treasury securities		5,000		—		—			5,000
U.S. government agency securities		1,998		24		—			2,022
Corporate obligations		52,450		754		(380	)		52,824
Other debt securities		13,086		166		(138	)		13,114
Total	$	158,515	$	3,350	$	(625	)	$	161,240
Held to Maturity
Fannie Mae	$	2,069	$	—	$	(6	)	$	2,063
Freddie Mac		4,027		—		(83	)		3,944
Total	$	6,096	$	-	$	(89	)	$	6,007

	September 30, 2020
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Available for Sale
Fannie Mae	$	41,961	$	1,385	$	(88	)	$	43,258
Freddie Mac		31,642		964		(2	)		32,604
Governmental National Mortgage Association		15,300		368		(99	)		15,569
Total mortgage-backed securities		88,903		2,717		(189	)		91,431
Obligations of states and political subdivisions		21,136		795		—			21,931
U.S. government agency securities		24,990		—		—			24,990
U.S. government treasury securities		7,991		57		—			8,048
Corporate obligations		51,188		807		(521	)		51,474
Other debt securities		14,265		495		(150	)		14,610
Total	$	208,473	$	4,871	$	(860	)	$	212,484

         The following is a summary of unrealized and realized gains and losses recognized in net income on equity securities during the three and six months ended March 31, 2021 and 2020.

(in thousands)	Three Months Ended March 31, 2021		Three Months Ended March 31, 2020
Net gains (losses) recognized during the period on equity securities	$	4	$	(6	)
Less: Net gains recognized during the period on equity securities sold    during the period		—		—
Unrealized gains (losses) recognized during the reporting period on equity    securities still held at the reporting date	$	4	$	(6	)
(in thousands)	Six Months Ended March 31, 2021		Six Months Ended March 31, 2020
Net gains (losses) recognized during the period on equity securities	$	11	$	(5	)
Less: Net gains recognized during the period on equity securities sold    during the period		—		—
Unrealized gains (losses) recognized during the reporting period on equity    securities still held at the reporting date	$	11	$	(5	)

The amortized cost and fair value of debt securities at March 31, 2021, by contractual maturity, are shown below. Expected maturities will differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties (in thousands):

	Available For Sale				Held to Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
Due in one year or less	$	6,421	$	6,429	$	—	$	—
Due after one year through five years		21,613		22,043		—		—
Due after five years through ten years		53,166		53,859		2,069		2,063
Due after ten years		77,315		78,909		4,027		3,944
Total	$	158,515	$	161,240	$	6,096	$	6,007

For the three months ended March 31, 2021, the Company realized gross gains of $417,000 and no gross losses on proceeds from the sale on investment securities of $10.7 million.  For the three months ended March 31, 2020, the Company realized gross gains of $199,000 and gross losses of $39,000 on proceeds from the sale on investment securities of $11.0 million

For the six months ended March 31, 2021, the Company realized gross gains of $417,000 and no gross losses on proceeds from the sale on investment securities of $10.7 million.  For the six months ended March 31, 2020, the Company realized gross gains of $420,000 and gross losses of $39,000 on proceeds from the sale on investment securities of $24.0 million

The following tables show the Company’s gross unrealized losses and fair value, aggregated by investment category and length of time that the individual securities have been in a continuous unrealized loss position (in thousands):

	March 31, 2021
	Number of Securities		Less than Twelve Months					Twelve Months or Greater					Total
			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		9	$	2,706	$	(21	)	$	4,659	$	(46	)	$	7,365	$	(67	)
Freddie Mac		6		5,954		(92	)		308		(2	)		6,262		(94	)
Governmental National Mortgage Association		6		417		(1	)		3,036		(34	)		3,453		(35	)
Corporate obligations		20		12,408		(277	)		4,405		(103	)		16,813		(380	)
Other debt securities		11		1,172		(7	)		3,537		(131	)		4,709		(138	)
Total		52	$	22,657	$	(398	)	$	15,945	$	(316	)	$	38,602	$	(714	)

	September 30, 2020
			Less than Twelve Months					Twelve Months or Greater					Total
	Number of Securities		Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses			Fair Value		Gross Unrealized Losses
Fannie Mae		8	$	1,397	$	(19	)	$	5,827	$	(69	)	$	7,224	$	(88	)
Freddie Mac		1		330		(2	)		—		—			330		(2	)
Governmental National Mortgage Association		7		4,428		(61	)		2,996		(38	)		7,424		(99	)
Corporate obligations		20		13,213		(93	)		6,573		(428	)		19,786		(521	)
Other debt securities		10		—		0			3,879		(150	)		3,879		(150	)
Total		46	$	19,368	$	(175	)	$	19,275	$	(685	)	$	38,643	$	(860	)

The Company’s investment securities portfolio contains unrealized losses on securities, including mortgage-related instruments issued or backed by the full faith and credit of the United States government, or generally viewed as having the implied guarantee of the U.S. government, other mortgage backed securities, debt obligations of a U.S. state or political subdivision, U.S. government agency securities, corporate obligations, other debt securities and equity securities.

The Company reviews its position quarterly and has asserted that at March 31, 2021, the declines outlined in the above table represent temporary declines and the Company would not be required to sell the above securities before their anticipated recovery in market value.

The Company has concluded that any impairment of its investment securities portfolio is not other than temporary but is the result of interest rate changes that are not expected to result in the non-collection of principal and interest during the period.