FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Dec. 31, 2016

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, 2016 and September 30, 2016. 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, 2016
	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
Small business administration securities	79,448		—		79,448		—		—		—		—		—
Obligations of states and political subdivisions	—		—		—		—		20,119		—		20,119		—
Non-bank qualified obligations of states and political subdivisions	737,983		—		737,983		—		454,513		—		454,513		—
Asset-backed securities	118,147		—		118,147		—		—		—		—		—
Mortgage-backed securities	534,939		—		534,939		—		124,469		—		124,469		—
Total debt securities	1,470,517		—		1,470,517		—		599,101		—		599,101		—
Common equities and mutual funds	1,254		1,254		—		—		—		—		—		—
Total securities	$	1,471,771	$	1,254	$	1,470,517	$	—	$	599,101	$	—	$	599,101	$	—



	Fair Value At September 30, 2016
	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 securities	$	12,978	$	—	$	12,978	$	—	$	—	$	—	$	—	$	—
Small business administration securities	80,719		—		80,719		—		—		—		—		—
Obligations of states and political subdivisions	—		—		—		—		20,937		—		20,937		—
Non-bank qualified obligations of states and political subdivisions	698,672		—		698,672		—		477,202		—		477,202		—
Asset-backed securities	116,815		—		116,815		—		—		—		—		—
Mortgage-backed securities	558,940		—		558,940		—		134,435		—		134,435		—
Total debt securities	1,468,124		—		1,468,124		—		632,574		—		632,574		—
Common equities and mutual funds	1,125		1,125		—		—		—		—		—		—
Total securities	$	1,469,249	$	1,125	$	1,468,124	$	—	$	632,574	$	—	$	632,574	$	—

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of December 31, 2016 and September 30, 2016.



	Fair Value At December 31, 2016
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
1-4 family residential mortgage loans	$	67	$	—	$	—	$	67
Commercial operating loans	$	165	$	—	$	—	$	165
Total Impaired Loans	$	232	$	—	$	—	$	232
Foreclosed Assets, net	$	76	$	—	$	—	$	76
Total	$	308	$	—	$	—	$	308



	Fair Value At September 30, 2016
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
1-4 family residential mortgage loans	$	68	$	—	$	—	$	68
Total Impaired Loans	68		—		—		68
Foreclosed Assets, net	76						76
Total	$	144	$	—	$	—	$	144

The significant inputs in the Level 3 measurement not supported by market activity included our probability assessments of expected future cash flows related to our acquisition of SCS during the earn-out period.



	December 31, 2016								September 30, 2016
	Fair Value Measurements Using Input Types								Fair Value Measurements Using Input Types
(Dollars in Thousands)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Liabilities:
Contingent Consideration	$	—	$	—	$	17,259	$	17,259	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	17,259	$	17,259	$	—	$	—	$	—	$	—

Quantitative Information about Level 3 Fair Value Measurements



	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at December 31, 2016		Fair Value at September 30, 2016	Valuation Technique	Unobservable Input	Range of Inputs
Impaired Loans, net	$	232	68	Market approach	Appraised values ⁽¹⁾	4.00 - 10.00%
Foreclosed Assets, net	$	76	76	Market approach	Appraised values ⁽¹⁾	4.00 - 10.00%
Contingent Consideration	$	17,259	—	Option based income	Discount rate	7.20%
					Risk-free rate	1.02%
					Company specific discount rate	1.76%


⁽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, 2016 and September 30, 2016.



	December 31, 2016
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	695,731	$	695,731	$	695,731	$	—	$	—

Securities available for sale	1,471,771		1,471,771		1,254		1,470,517		—
Securities held to maturity	604,976		599,101		—		599,101		—
Total securities	2,076,747		2,070,872		1,254		2,069,618		—

Loans held-for-sale	1,223		1,223		—		1,223		—

Loans receivable:
One to four family residential mortgage loans	172,877		170,283		—		—		170,283
Commercial and multi-family real estate loans	440,512		432,143		—		—		432,143
Agricultural real estate loans	64,014		62,973		—		—		62,973
Consumer loans	173,164		174,796		—		—		174,796
Commercial operating loans	50,824		50,149		—		—		50,149
Agricultural operating loans	33,617		33,481		—		—		33,481
Premium finance loans	179,508		179,874		—		—		179,874
Total loans receivable	1,114,516		1,103,699		—		—		1,103,699

Federal Home Loan Bank stock	3,832		3,832		—		3,832		—
Accrued interest receivable	21,375		21,375		21,375		—		—

Financial liabilities
Noninterest bearing demand deposits	2,473,275		2,473,275		2,473,275		—		—
Interest bearing demand deposits, savings, and money markets	140,541		140,541		140,541		—		—
Certificates of deposit	122,334		121,830		—		121,830		—
Wholesale non-maturing deposits	499,608		499,608		499,608		—		—
Wholesale certificates of deposit	427,379		426,960		—		426,960		—
Total deposits	3,663,137		3,662,214		3,113,424		548,790		—

Advances from Federal Home Loan Bank	7,000		7,940		—		7,940		—
Securities sold under agreements to repurchase	3,782		3,782		—		3,782		—
Capital lease	2,000		2,000		—		2,000		—
Trust preferred securities	10,310		10,436		—		10,436		—
Subordinated debentures	73,244		76,843		—		76,843		—
Accrued interest payable	2,255		2,255		2,255		—		—



	September 30, 2016
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	773,830	$	773,830	$	773,830	$	—	$	—

Securities available for sale	1,469,249		1,469,249		1,125		1,468,124		—
Securities held to maturity	619,853		632,574		—		632,574		—
Total securities	2,089,102		2,101,823		1,125		2,100,698		—

Loans receivable:
One to four family residential mortgage loans	162,298		163,886		—		—		163,886
Commercial and multi-family real estate loans	422,932		422,307		—		—		422,307
Agricultural real estate loans	63,612		63,868		—		—		63,868
Consumer loans	37,094		36,738		—		—		36,738
Commercial operating loans	31,271		31,108		—		—		31,108
Agricultural operating loans	37,083		36,897		—		—		36,897
Premium finance loans	171,604		172,000		—		—		172,000
Total loans receivable	925,894		926,803		—		—		926,803

Federal Home Loan Bank stock	47,512		47,512		—		47,512		—
Accrued interest receivable	17,199		17,199		17,199		—		—

Financial liabilities
Noninterest bearing demand deposits	2,167,522		2,167,522		2,167,522		—		—
Interest bearing demand deposits, savings, and money markets	136,568		136,568		136,568		—		—
Certificates of deposit	125,992		125,772		—		125,772		—
Total deposits	2,430,082		2,429,862		2,304,090		125,772		—

Advances from Federal Home Loan Bank	107,000		108,168		—		108,168		—
Federal funds purchased	992,000		992,000		992,000		—		—
Securities sold under agreements to repurchase	3,039		3,039		—		3,039		—
Capital lease	2,018		2,018		—		2,018		—
Trust preferred securities	10,310		10,437		—		10,437		—
Subordinated debentures	73,211		77,250		—		77,250		—
Accrued interest payable	875		875		875		—		—