FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2017

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 March 31, 2017 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 March 31, 2017
	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	131,348		—		131,348		—		—		—		—		—
Obligations of states and political subdivisions	—		—		—		—		20,105		—		20,105		—
Non-bank qualified obligations of states and political subdivisions	932,010		—		932,010		—		453,338		—		453,338		—
Asset-backed securities	119,527		—		119,527		—		—		—		—		—
Mortgage-backed securities	642,833		—		642,833		—		120,980		—		120,980		—
Total debt securities	1,825,718		—		1,825,718		—		594,423		—		594,423		—
Common equities and mutual funds	1,555		1,555		—		—		—		—		—		—
Total securities	$	1,827,273	$	1,555	$	1,825,718	$	—	$	594,423	$	—	$	594,423	$	—



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



	March 31, 2017								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	$	—	$	—	$	17,252	$	17,252	$	—	$	—	$	—	$	—
Total liabilities	$	—	$	—	$	17,252	$	17,252	$	—	$	—	$	—	$	—

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 March 31, 2017 and September 30, 2016.



	Fair Value At March 31, 2017
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
1-4 family residential mortgage loans	$	67	$	—	$	—	$	67
Commercial operating loans	$	248	$	—	$	—	$	248
Total Impaired Loans	$	315	$	—	$	—	$	315
Foreclosed Assets, net	$	—	$	—	$	—	$	—
Total	$	315	$	—	$	—	$	315



	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

Quantitative Information about Level 3 Fair Value Measurements



	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at March 31, 2017		Fair Value at September 30, 2016	Valuation Technique	Unobservable Input	Range of Inputs
Impaired Loans, net	$	315	68	Market approach	Appraised values ⁽¹⁾	4.00 - 10.00%
Foreclosed Assets, net	$	—	76	Market approach	Appraised values ⁽¹⁾	4.00 - 10.00%
Contingent Consideration	$	17,252	—	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 estimating 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 March 31, 2017 and September 30, 2016.



	March 31, 2017
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	67,293	$	67,293	$	67,293	$	—	$	—

Securities available for sale	1,827,273		1,827,273		1,555		1,825,718		—
Securities held to maturity	596,803		594,423		—		594,423		—
Total securities	2,424,076		2,421,696		1,555		2,420,141		—

Loans receivable:
One to four family residential mortgage loans	178,310		176,879		—		—		176,879
Commercial and multi-family real estate loans	473,058		464,071		—		—		464,071
Agricultural real estate loans	62,422		58,829		—		—		58,829
Consumer loans	182,156		181,687		—		—		181,687
Commercial operating loans	33,894		34,004		—		—		34,004
Agricultural operating loans	35,493		35,394		—		—		35,394
Premium finance loans	187,049		190,327		—		—		190,327
Total loans receivable	1,152,382		1,141,191		—		—		1,141,191

Federal Home Loan Bank stock	25,043		25,043		—		25,043		—
Accrued interest receivable	20,902		20,902		20,902		—		—

Financial liabilities
Noninterest bearing demand deposits	2,637,167		2,637,167		2,637,167		—		—
Interest bearing demand deposits, savings, and money markets	151,971		151,971		151,971		—		—
Certificates of deposit	61,170		60,689		—		60,689		—
Wholesale non-maturing deposits	21,923		21,923		21,923		—		—
Total deposits	2,872,231		2,871,750		2,811,061		60,689		—

Advances from Federal Home Loan Bank	7,000		7,891		—		7,891		—
Federal funds purchased	493,000		493,000		493,000		—		—
Securities sold under agreements to repurchase	1,848		1,848		—		1,848		—
Capital lease	1,980		1,980		—		1,980		—
Trust preferred securities	10,310		10,446		—		10,446		—
Subordinated debentures	73,278		75,375		—		75,375		—
Accrued interest payable	722		722		722		—		—



	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		—		—