Disclosures About Fair Value Measurements

12 Months Ended

Sep. 30, 2011

Disclosures About Fair Value Measurements [Abstract]

Disclosures About Fair Value Measurements

Note 15 - Disclosures About Fair Value Measurements

The following disclosures show the hierarchal disclosure framework associated with the level of pricing observations utilized in measuring assets and liabilities at fair value. The three broad levels are as follows:

Level I -	Quoted prices are available in the active markets for identical assets or liabilities as of the reported date.
Level II -	Pricing inputs are other than quoted prices in active markets, which are either directly or indirectly observable as of the reported date. The nature of these assets and liabilities include items for which quoted prices are available but traded less frequently and items that are fair valued using other financial instruments, the parameters of which can be directly observed.
Level III -	Valuations derived from valuation techniques in which one or more significant inputs or significant value drivers are unobservable.

This hierarchy requires the use of observable market data when available.

The following tables present the assets and liabilities reported on the consolidated statements of financial condition at their fair value as of September 30, 2011 and 2010 by level within the fair value hierarchy. Financial assets and liabilities are classified in their entirety based on the lowest level of input that is significant to the fair value measurement.

		Level III		Level III		Level III		Level III
	Level I		Level II		Level III		Total
As of September 30, 2011	(Dollar amounts in thousands)
Assets:
Available-for-sale securities:
U.S. government and agency obligations	$	-	$	39,794	$	-	$	39,794
Municipal obligations		-		31,828		-		31,828
Corporate obligations		-		3,215		-		3,215
Equity securities in financial institutions		1,501		-		-		1,501
Other equity securities		944		-		-		944
Mutual funds		2,737		-		-		2,737
Trust preferred securities		-		-		7,950		7,950
Mortgage backed securities:
Agency		-		68,093		-		68,093
Collateralized mortgage obligations:
Agency		-		12,419		-		12,419
Private Label		-		2,309		-		2,309
	$	5,182	$	157,658	$	7,950	$	170,790
Residential loans held for sale	$	-	$	1,837	$	-	$	1,837
Liabilities:
Derivative instruments	$	-	$	532	$	-	$	532

		Level III		Level III		Level III		Level III
	Level I		Level II		Level III		Total
As of September 30, 2010	(Dollar amounts in thousands)
Assets:
Available-for-sale securities:
U.S. government and agency obligations	$	-	$	50,278	$	-	$	50,278
Municipal obligations		-		29,550		-		29,550
Corporate obligations		-		7,606		-		7,606
Equity securities in financial institutions		1,778		-		-		1,778
Other equity securities		932		-		-		932
Mutual funds		9,214		-		-		9,214
Trust preferred securities		-		-		10,940		10,940
Mortgage backed securities:
Agency		-		45,377		-		45,377
Collateralized mortgage obligations:
Agency		-		15,655		-		15,655
Private Label		-		3,370		-		3,370
	$	11,924	$	151,836	$	10,940	$	174,700
Residential loans held for sale	$	-	$	1,970	$	-	$	1,970
Liabilities:
Derivative instruments	$	-	$	736	$	-	$	736

The Company's Level III investments at September 30, 2011, represent 19 different trust preferred offerings with an aggregate fair value of $8.0 million, which had floating rates based on LIBOR at September 30, 2011. Due to dislocations in the credit markets broadly, and the lack of trading and new issuance in pooled trust preferred securities, market price indications generally reflect the lack of liquidity in the market. For further information relating to the Company's Level III trust preferred securities, reference Note 2, "Securities", on pages 71 through 78.

The following table presents the changes in the Level III fair-value category for the fiscal period ended September 30, 2011. The Company classifies financial instruments in Level III of the fair-value hierarchy when there is reliance on at least one significant unobservable input to the valuation model. In addition to the unobservable inputs, the valuation models for Level III financial instruments typically also rely on a number of inputs that are readily observable either directly or indirectly.

Securities Available-For-Sale

(Dollar amounts in thousands)

Beginning balance October 1, 2010	$	10,940
Impairment charge on securities		(1,212	)
Net change in unrealized loss on securities available for sale		(700	)
Purchases, issuances, calls, and settlements		(500	)
Paydowns on securities		(587	)
Amortization		9
Transfers in and/or out of Level III		-
Ending balance September 30, 2011	$	7,950

The following tables present the assets measured on a nonrecurring basis on the consolidated statements of financial condition at their fair value as of September 30, 2011 and 2010 by level within the fair value hierarchy. Impaired loans that are collateral dependent are written down to fair value through the establishment of specific reserve allocations. Techniques used to value the collateral that secure the impaired loan include: quoted market prices for identical assets classified as Level I inputs; observable inputs, employed by certified appraisers, for similar assets classified as Level II inputs. In cases where valuation techniques included inputs that are unobservable and are based on estimates and assumptions developed by management based on the best information available under each circumstance, the asset valuation is classified as Level III inputs.

	Level I		Level II		Level III		Total
As of September 30, 2011	(Dollar amounts in thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	6,549	$	12,862	$	19,411
Foreclosed real estate, net		-		3,125		-		3,125
	$	-	$	9,674	$	12,862	$	22,536

	Level I		Level II		Level III		Total
As of September 30, 2010	(Dollar amounts in thousands)
Assets Measured on a Nonrecurring Basis:
Impaired loans	$	-	$	10,318	$	6,286	$	16,604
Foreclosed real estate, net		-		398		-		398
	$	-	$	10,716	$	6,286	$	17,002