Securities Available for Sale (Tables)

6 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investment securities available for sale are summarized as follows:



	March 31, 2015
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Other investment securities:
Collateralized loan obligations	$	24,402,948	$	17,322	$	(90,884	)	$	24,329,386
Mortgage-backed securities:
FHLMC certificates	40,018,791		599,789		(71,818		)	40,546,762
FNMA certificates	105,545,426		824,991		(385,662		)	105,984,755
GNMA certificates	1,574,614		72,023		—			1,646,637
Collateralized mortgage obligations:
FHLMC	41,703		3,187		—			44,890
FNMA	70,097		1,820		—			71,917
Private-label mortgage securities: ₍₁₎
Investment grade	1,206,663		5,765		(44,805		)	1,167,623
Split rating ₍₂₎	1,034,993		—		(3,887		)	1,031,106
Non-investment grade	8,229,365		17,745		(88,660		)	8,158,450
Total	$	182,124,600	$	1,542,642	$	(685,716	)	$	182,981,526

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(1)	Credit ratings are current as of March 31, 2015.


(2)	Bonds with split ratings represent securities with both investment and non-investment grades.



	September 30, 2014
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
Other investment securities:
Tax-free municipals	$	13,430,732	$	26,471	$	—		$	13,457,203
Mortgage-backed securities:
FHLMC certificates	44,036,704		359,644		(370,420		)	44,025,928
FNMA certificates	119,445,041		499,772		(1,666,436		)	118,278,377
GNMA certificates	1,595,029		102,815		—			1,697,844
Collateralized mortgage obligations:
FHLMC	49,425		4,071		—			53,496
FNMA	78,152		2,004		—			80,156
Private-label mortgage securities:
Investment grade	1,485,804		8,941		(47,887		)	1,446,858
Split rating ₍₁₎	1,090,524		3,583		—			1,094,107
Non-investment grade	8,674,491		45,243		(110,430		)	8,609,304
Total	$	189,885,902	$	1,052,544	$	(2,195,173	)	$	188,743,273

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(1)	Bonds with split ratings represent securities with both investment and non-investment grades.

Investments Classified by Contractual Maturity Date

The amortized cost and estimated fair value of investment securities available for sale as of March 31, 2015, by contractual maturity, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.



	Amortized Cost		Estimated Fair Value
Due within one year	$	—	$	—
Due from one year to five years	—		—
Due after five years	24,402,948		24,329,386
Mortgage-backed securities	157,721,652		158,652,140
Total	$	182,124,600	$	182,981,526

Securities Available for Sale in Continuous Unrealized Loss Position for Less Than 12 Months

Investment securities available for sale that had been in a continuous unrealized loss position for less than 12 months at March 31, 2015 and September 30, 2014 are as follows:



	March 31, 2015
	Amortized Cost		Gross Unrealized Losses			Estimated Fair Value
Other investment securities:
Collateralized loan obligations	$	16,127,470	$	(90,884	)	$	16,036,586
Mortgage-backed securities:
FHLMC certificates	17,508,321		(71,818		)	17,436,503
FNMA certificates	30,526,472		(111,084		)	30,415,388
Collateralized mortgage obligations:
Private-label mortgage securities	4,060,724		(22,897		)	4,037,827
Total	$	68,222,987	$	(296,683	)	$	67,926,304



	September 30, 2014
	Amortized Cost		Gross Unrealized Losses			Estimated Fair Value
Mortgage-backed securities:
FNMA certificates	$	6,164,452	$	(2,285	)	$	6,162,167
Collateralized mortgage obligations:
Private-label mortgage securities	1,900,526		(59,509		)	1,841,017
Total	$	8,064,978	$	(61,794	)	$	8,003,184

Securities Available for Sale in Continuous Unrealized Loss Position for Greater Than 12 Months

Investment securities available for sale that had been in a continuous unrealized loss position for greater than 12 months at March 31, 2015 and September 30, 2014 are as follows:



	March 31, 2015
	Amortized Cost		Gross Unrealized Losses			Estimated Fair Value
Mortgage-backed securities:
FNMA certificates	$	22,009,642	$	(274,578	)	$	21,735,064
Collateralized mortgage obligations:
Private-label mortgage securities	2,548,868		(114,455		)	2,434,413
Total	$	24,558,510	$	(389,033	)	$	24,169,477



	September 30, 2014
	Amortized Cost		Gross Unrealized Losses			Estimated Fair Value
Mortgage-backed securities:
FHLMC certificates	$	18,849,864	$	(370,420	)	$	18,479,444
FNMA certificates	77,274,838		(1,664,152		)	75,610,686
Collateralized mortgage obligations:
Private-label mortgage securities	4,188,449		(98,807		)	4,089,642
Total	$	100,313,151	$	(2,133,379	)	$	98,179,772

Other than Temporary Impairment, Credit Losses Recognized in Earnings

The Company previously recognized $380,000 in credit losses on its investment portfolio. The Company recorded no such credit losses during the three and six months ended March 31, 2015 and 2014.

Non-Agency Collateralized Mortgage Obligations

The following table shows issuer-specific information, including current par value, book value, fair value, credit rating and unrealized gain (loss) for the Company's portfolio of non-agency collateralized mortgage obligations as of March 31, 2015:



Cusip	Description	Credit Rating ₍₁₎			Cumulative Net Impairment Losses Recognized in Earnings		Current Par Value		Amortized Cost		Market Value		Unrealized Gain (Loss)
		Moody	S&P	Fitch	(dollars in thousands)
Investment Grade
36228FQF6	GSR 2003-4F 1A2	n/a	AA+	BBB	$	—	$	163	$	163	$	166	$	3
55265KL80	MASTR 2003-8 4A1	n/a	A+	A	—		214		213		216		3
86359BVF5	SARM 2004-6 3A3	n/a	A+	n/a	—		831		831		786		(45		)
	Total				—		1,208		1,207		1,168		(39		)
Split Rating
17307GDL9	CMLTI 2004-HYB1 A31	Ba3	n/a	BBB	—		1,035		1,035		1,031		(4		)
	Total				—		1,035		1,035		1,031		(4		)
Non-Investment Grade
576433UQ7	MARM 2004-13 B1	NR	CCC	n/a	380		3,406		3,026		3,007		(19		)
576433VN3	MARM 2004-15 4A1	B3	n/a	B	—		1,718		1,718		1,648		(70		)
576433QD1	MARM 2004-7 5A1	Ba3	BB	n/a	—		3,486		3,485		3,503		18
	Total				380		8,610		8,229		8,158		(71		)
	Grand Total				$	380	$	10,853	$	10,471	$	10,357	$	(114	)

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(1)	Credit ratings are current as of March 31, 2015.

Schedule of Accumulated Other Comprehensive Income (Loss)

Changes in accumulated other comprehensive income/loss by component for the three and six months ended March 31, 2015 and 2014 are shown in the table below. All amounts are net of tax. The line item affected in the consolidated statements of income by the reclassified amounts is loss on investment securities available for sale.



	Unrealized Gain/Loss on Available-for-Sale Securities
	Three Months Ended March 31,						Six Months Ended March 31,
	2015			2014			2015			2014
Beginning balance	$	(22,874	)	$	(2,461,351	)	$	(754,135	)	$	(1,839,593	)
Other comprehensive income before reclassifications	571,319			671,535			1,303,000			49,777
Amounts reclassified from accumulated other comprehensive income (loss) to loss on investment securities available for sale	17,126			—			16,706			—
Net current-period other comprehensive income	588,445			671,535			1,319,706			49,777
Ending balance	$	565,571		$	(1,789,816	)	$	565,571		$	(1,789,816	)

- Definition

Tabular disclosure of available-for-sale securities which includes, but is not limited to, changes in the cost basis and fair value, fair value and gross unrealized gain (loss), fair values by type of security, contractual maturity and classification, amortized cost basis, contracts to acquire securities to be accounted for as available-for-sale, debt maturities, transfers to trading, change in net unrealized holding gain (loss) net of tax, continuous unrealized loss position fair value, aggregate losses qualitative disclosures, other than temporary impairment (OTTI) losses or other disclosures related to available for sale securities.

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- Definition

Tabular disclosure of the amount of other than temporary impairment (OTTI) related to credit losses recognized in earnings including: (a) the beginning balance of the amount related to credit losses on debt securities held by the investor at the beginning of the period for which a portion of an OTTI was recognized in other comprehensive income; (b) additions for the amount related to the credit loss for which an OTTI was not previously recognized; (c) reductions for securities sold during the period (realized); (d) reductions for securities for which the amount previously recognized in other comprehensive income was recognized in earnings because the investor intends to sell the security or more likely than not will be required to sell the security before recovery of its amortized cost basis; (e) additional increases to the amount related to the credit loss for which an OTTI was previously recognized when the investor does not intend to sell the security and it is not more likely than not that the investor will be required to sell the security before recovery of its amortized cost basis; (f) reductions for increases in cash flows expected to be collected that are recognized over the remaining life of the security; and (g) the ending balance of the amount related to credit losses on debt securities held by the entity at the end of the period for which a portion of an OTTI was recognized in other comprehensive income.

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