FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Dec. 31, 2014

Summary of Fair Values of Securities Available for Sale and Held to Maturity

The following table summarizes the fair values of securities available for sale and held to maturity at December 31, 2014 and September 30, 2014. Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.

	Fair Value at December 31, 2014
	Available For Sale							Held to Maturity
(Dollars in Thousands)	Total	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Debt securities
Trust preferred and corporate securities	20,814	$	-	$	20,814	$	-	$	-	$	-	$	-	$	-
Small business administration securities	37,624		-		37,624		-		-		-		-		-
Obligations of states and political subdivisions	-		-		-		-		19,068		-		19,068		-
Non-bank qualified obligations of states and political subdivisions	411,706		-		411,706		-		213,508		-		213,508		-
Mortgage-backed securities	577,460		-		577,460		-		69,973		-		69,973		-
Total debt securities	1,047,604		-		1,047,604		-		302,549		-		302,549		-
Common equities and mutual funds	853		853		-		-		-		-		-		-
Total securities	1,048,457	$	853	$	1,047,604	$	-	$	302,549	$	-	$	302,549	$	-

	Fair Value at September 30, 2014
	Available For Sale								Held to Maturity
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Debt securities
Trust preferred and corporate securities	$	46,929	$	-	$	46,929	$	-	$	-	$	-	$	-	$	-
Small business administration securities		67,012		-		67,012		-		-		-		-		-
Obligations of states and political subdivisions		-		-		-		-		18,980		-		18,980		-
Non-bank qualified obligations of states and political subdivisions		367,580		-		367,580		-		192,160		-		192,160		-
Mortgage-backed securities		657,870		-		657,870		-		68,172		-		68,172		-
Total debt securities		1,139,391		-		1,139,391		-		279,312		-		279,312		-
Common equities and mutual funds		825		825		-		-		-		-		-		-
Total securities	$	1,140,216	$	825	$	1,139,391	$	-	$	279,312	$	-	$	279,312	$	-

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of December 31, 2014 and September 30, 2014.

	Fair Value at December 31, 2014
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
Commercial and multi-family real estate loans	$	662	$	-	$	-	$	662
Total Impaired Loans		662		-		-		662
Foreclosed Assets, net		-		-		-		-
Total	$	662	$	-	$	-	$	662

	Fair Value at September 30, 2014
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
One to four family residential mortgage loans	$	222	$	-	$	-	$	222
Commercial and multi-family real estate loans		930		-		-		930
Total Impaired Loans		1,152		-		-		1,152
Foreclosed Assets, net		15		-		-		15
Total	$	1,167	$	-	$	-	$	1,167

Quantitative Information about Level 3 Fair Value Measurements

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at Deecmber 31, 2014		Valuation Technique	Unobservable Input

Impaired Loans, net	$	662	Market approach	Appraised values ⁽¹⁾
Foreclosed Assets, net		-	Market approach	Appraised values ⁽¹⁾

⁽¹⁾ The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at September 30, 2014		Valuation Technique	Unobservable Input

Impaired Loans, net	$	1,152	Market approach	Appraised values ⁽¹⁾
Foreclosed Assets, net		15	Market approach	Appraised values ⁽¹⁾

⁽¹⁾ The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.

Carrying Amount and Estimated Fair Value of Financial Instruments

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at December 31, 2014 and September 30, 2014.

	December 31, 2014
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	52,470	$	52,470	$	52,470	$	-	$	-

Securities available for sale		1,048,457		1,048,457		853		1,047,604		-
Securities held to maturity		303,315		302,549		-		302,549		-
Total securities		1,351,772		1,351,006		853		1,350,153		-

Loans receivable:
One to four family residential mortgage loans		111,773		104,057		-		-		104,057
Commercial and multi-family real estate loans		251,022		259,745		-		-		259,745
Agricultural real estate loans		58,193		57,442		-		-		57,442
Consumer loans		33,796		33,939		-		-		33,939
Commercial operating loans		28,057		23,594		-		-		23,594
Agricultural operating loans		39,325		39,627		-		-		39,627
Premium finance		74,156		75,783		-		-		75,783
Total loans receivable		596,322		594,187		-		-		594,187

Federal Home Loan Bank stock		5,685		5,685		-		5,685		-
Accrued interest receivable		12,397		12,397		12,397		-		-

Financial liabilities
Noninterest bearing demand deposits		1,586,382		1,586,382		1,586,382		-		-
Interest bearing demand deposits, savings, and money markets		102,094		102,094		102,094		-		-
Certificates of deposit		100,403		100,481		-		100,481		-
Total deposits		1,788,879		1,788,957		1,688,476		100,481		-

Advances from Federal Home Loan Bank		7,000		8,746		-		8,746		-
Federal funds purchased		81,000		81,000				81,000
Securities sold under agreements to repurchase		14,221		14,221		-		14,221		-
Subordinated debentures		10,310		10,414		-		10,414		-
Accrued interest payable		255		255		255		-		-

	September 30, 2014
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	29,832	$	29,832	$	29,832	$	-	$	-

Securities available for sale		1,140,216		1,140,216		825		1,139,391		-
Securities held to maturity		282,933		279,312		-		279,312		-
Total securities		1,423,149		1,419,528		825		1,418,703		-

Loans receivable:
One to four family residential mortgage loans		116,395		111,254		-		-		111,254
Commercial and multi-family real estate loans		224,302		234,845		-		-		234,845
Agricultural real estate loans		56,071		58,651		-		-		58,651
Consumer loans		29,329		29,580		-		-		29,580
Commercial operating loans		30,846		25,660		-		-		25,660
Agricultural operating loans		42,258		44,398		-		-		44,398
Total loans receivable		499,201		504,388		-		-		504,388

Federal Home Loan Bank stock		21,245		21,245		-		21,245		-
Accrued interest receivable		11,222		11,222		11,222		-		-

Financial liabilities
Noninterest bearing demand deposits		1,126,715		1,126,715		1,126,715		-		-
Interest bearing demand deposits, savings, and money markets		105,273		105,273		105,273		-		-
Certificates of deposit		134,553		134,746		-		134,746		-
Total deposits		1,366,541		1,366,734		1,231,988		134,746		-

Advances from Federal Home Loan Bank		7,000		8,789		-		8,789		-
Federal funds purchased		470,000		470,000		-		470,000		-
Securities sold under agreements to repurchase		10,411		10,411		-		10,411		-
Subordinated debentures		10,310		10,415		-		10,415		-
Accrued interest payable		318		318		318		-		-

- Definition

Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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