XML 26 R14.htm IDEA: XBRL DOCUMENT
v3.8.0.1

SECURITIES | 6 Months Ended
--- | ---
Mar. 31, 2018
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES During the first quarter of fiscal 2018, the Company early adopted Accounting Standard Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." Due to the early adoption of the ASU, the Company transferred $204.7 million of investment securities and $101.3 million of MBS from HTM to AFS during the first quarter of fiscal 2018. This change allows for enhanced balance sheet management and provides the opportunity for more liquidity, should it be needed. The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at March 31, 2018 and September 30, 2017 are presented below.
Available For Sale |  |  |  |  |  |  |
At March 31, 2018 | AMORTIZED COST |  |  | GROSS UNREALIZED GAINS |  |  | GROSS UNREALIZED (LOSSES) |  |  | FAIR VALUE |
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |
Small business administration securities | 52,313 |  |  | 50 |  |  | (266 | ) |  | 52,097 |
Obligations of states and political subdivisions | 14,508 |  |  | 62 |  |  | (173 | ) |  | 14,397 |
Non-bank qualified obligations of states and political subdivisions | 1,219,989 |  |  | 4,502 |  |  | (18,125 | ) |  | 1,206,366 |
Asset-backed securities | 142,305 |  |  | 2,007 |  |  | (161 | ) |  | 144,151 |
Mortgage-backed securities | 671,649 |  |  | — |  |  | (16,759 | ) |  | 654,890 |
Total debt securities | 2,100,764 |  |  | 6,621 |  |  | (35,484 | ) |  | 2,071,901 |
Common equities and mutual funds | 1,347 |  |  | 505 |  |  | (1 | ) |  | 1,851 |
Total available for sale securities | $ | 2,102,111 |  |  | $ | 7,126 |  |  | $ | (35,485 | ) |  | $ | 2,073,752 |
At September 30, 2017 | AMORTIZED COST |  |  | GROSS UNREALIZED GAINS |  |  | GROSS UNREALIZED (LOSSES) |  |  | FAIR VALUE |
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |
Small business administration securities | 57,046 |  |  | 825 |  |  | — |  |  | 57,871 |
Non-bank qualified obligations of states and political subdivisions | 938,883 |  |  | 14,983 |  |  | (3,037 | ) |  | 950,829 |
Asset-backed securities | 94,451 |  |  | 2,381 |  |  | — |  |  | 96,832 |
Mortgage-backed securities | 588,918 |  |  | 1,259 |  |  | (3,723 | ) |  | 586,454 |
Total debt securities | 1,679,298 |  |  | 19,448 |  |  | (6,760 | ) |  | 1,691,986 |
Common equities and mutual funds | 1,009 |  |  | 436 |  |  | — |  |  | 1,445 |
Total available for sale securities | $ | 1,680,307 |  |  | $ | 19,884 |  |  | $ | (6,760 | ) |  | $ | 1,693,431 |
Held to Maturity |  |  |  |  |  |  |
At March 31, 2018 | AMORTIZED COST |  |  | GROSS UNREALIZED GAINS |  |  | GROSS UNREALIZED (LOSSES) |  |  | FAIR VALUE |
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 3,934 |  |  | $ | 17 |  |  | $ | (25 | ) |  | $ | 3,926 |
Non-bank qualified obligations of states and political subdivisions | 222,684 |  |  | 68 |  |  | (8,189 | ) |  | 214,563 |
Mortgage-backed securities | 8,393 |  |  | — |  |  | (332 | ) |  | 8,061 |
Total held to maturity securities | $ | 235,011 |  |  | $ | 85 |  |  | $ | (8,546 | ) |  | $ | 226,550 |
At September 30, 2017 | AMORTIZED COST |  |  | GROSS UNREALIZED GAINS |  |  | GROSS UNREALIZED (LOSSES) |  |  | FAIR VALUE |
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 19,247 |  |  | $ | 157 |  |  | $ | (36 | ) |  | $ | 19,368 |
Non-bank qualified obligations of states and political subdivisions | 430,593 |  |  | 4,744 |  |  | (2,976 | ) |  | 432,361 |
Mortgage-backed securities | 113,689 |  |  | — |  |  | (1,233 | ) |  | 112,456 |
Total held to maturity securities | $ | 563,529 |  |  | $ | 4,901 |  |  | $ | (4,245 | ) |  | $ | 564,185 |
Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary. This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company did not have any trading securities at March 31, 2018 or September 30, 2017. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2018 and September 30, 2017, were as follows:
Available For Sale | LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At March 31, 2018 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |  |  |  |  |
Small business administration securities | $ | 42,418 |  |  | $ | (266 | ) |  | $ | — |  |  | $ | — |  |  | $ | 42,418 |  |  | $ | (266 | )
Obligations of states and political subdivisions | 8,469 |  |  | (173 | ) |  | — |  |  | — |  |  | 8,469 |  |  | (173 | )
Non-bank qualified obligations of states and political subdivisions | 770,431 |  |  | (17,356 | ) |  | 15,650 |  |  | (769 | ) |  | 786,081 |  |  | (18,125 | )
Asset-backed securities | 49,063 |  |  | (161 | ) |  | — |  |  | — |  |  | 49,063 |  |  | (161 | )
Mortgage-backed securities | 374,252 |  |  | (6,233 | ) |  | 280,638 |  |  | (10,526 | ) |  | 654,890 |  |  | (16,759 | )
Total debt securities | 1,244,633 |  |  | (24,189 | ) |  | 296,288 |  |  | (11,295 | ) |  | 1,540,921 |  |  | (35,484 | )
Common equities and mutual funds | 1,850 |  |  | (1 | ) |  | — |  |  | — |  |  | 1,850 |  |  | (1 | )
Total available for sale securities | $ | 1,246,483 |  |  | $ | (24,190 | ) |  | $ | 296,288 |  |  | $ | (11,295 | ) |  | $ | 1,542,771 |  |  | $ | (35,485 | )
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At September 30, 2017 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | 280,900 |  |  | (2,887 | ) |  | 5,853 |  |  | (150 | ) |  | 286,753 |  |  | (3,037 | )
Mortgage-backed securities | 237,897 |  |  | (1,625 | ) |  | 100,287 |  |  | (2,098 | ) |  | 338,184 |  |  | (3,723 | )
Total debt securities | 518,797 |  |  | (4,512 | ) |  | 106,140 |  |  | (2,248 | ) |  | 624,937 |  |  | (6,760 | )
Total available for sale securities | $ | 518,797 |  |  | $ | (4,512 | ) |  | $ | 106,140 |  |  | $ | (2,248 | ) |  | $ | 624,937 |  |  | $ | (6,760 | )
Held To Maturity | LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At March 31, 2018 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 1,682 |  |  | $ | (4 | ) |  | $ | 1,742 |  |  | $ | (21 | ) |  | $ | 3,424 |  |  | $ | (25 | )
Non-bank qualified obligations of states and political subdivisions | 133,070 |  |  | (4,468 | ) |  | 76,449 |  |  | (3,721 | ) |  | 209,519 |  |  | (8,189 | )
Mortgage-backed securities | — |  |  | — |  |  | 8,061 |  |  | (332 | ) |  | 8,061 |  |  | (332 | )
Total held to maturity securities | $ | 134,752 |  |  | $ | (4,472 | ) |  | $ | 86,252 |  |  | $ | (4,074 | ) |  | $ | 221,004 |  |  | $ | (8,546 | )
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At September 30, 2017 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
| (Dollars in Thousands)
Debt securities |  |  |  |  |  |  |  |  |  |  |
Obligations of states and political subdivisions | $ | 1,364 |  |  | $ | (6 | ) |  | $ | 4,089 |  |  | $ | (30 | ) |  | $ | 5,453 |  |  | $ | (36 | )
Non-bank qualified obligations of states and political subdivisions | 202,018 |  |  | (2,783 | ) |  | 6,206 |  |  | (193 | ) |  | 208,224 |  |  | (2,976 | )
Mortgage-backed securities | 112,456 |  |  | (1,233 | ) |  | — |  |  | — |  |  | 112,456 |  |  | (1,233 | )
Total held to maturity securities | $ | 315,838 |  |  | $ | (4,022 | ) |  | $ | 10,295 |  |  | $ | (223 | ) |  | $ | 326,133 |  |  | $ | (4,245 | )
At March 31, 2018, the investment portfolio included securities with current unrealized losses which have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and because the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at March 31, 2018. The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
Available For Sale | AMORTIZED COST |  |  | FAIR VALUE |
At March 31, 2018 | (Dollars in Thousands)
Due in one year or less | $ | 100 |  |  | $ | 100 |
Due after one year through five years | 47,402 |  |  | 47,956 |
Due after five years through ten years | 436,528 |  |  | 438,149 |
Due after ten years | 945,085 |  |  | 930,806 |
| 1,429,115 |  |  | 1,417,011 |
Mortgage-backed securities | 671,649 |  |  | 654,890 |
Common equities and mutual funds | 1,347 |  |  | 1,851 |
Total available for sale securities | $ | 2,102,111 |  |  | $ | 2,073,752 |
| AMORTIZED COST |  |  | FAIR VALUE |
At September 30, 2017 | (Dollars in Thousands)
Due in one year or less | $ | — |  |  | $ | — |
Due after one year through five years | 36,586 |  |  | 37,674 |
Due after five years through ten years | 347,831 |  |  | 358,198 |
Due after ten years | 705,963 |  |  | 709,660 |
| 1,090,380 |  |  | 1,105,532 |
Mortgage-backed securities | 588,918 |  |  | 586,454 |
Common equities and mutual funds | 1,009 |  |  | 1,445 |
Total available for sale securities | $ | 1,680,307 |  |  | $ | 1,693,431 |
Held To Maturity | AMORTIZED COST |  |  | FAIR VALUE |
At March 31, 2018 | (Dollars in Thousands)
Due in one year or less | $ | 2,267 |  |  | $ | 2,260 |
Due after one year through five years | 16,641 |  |  | 16,572 |
Due after five years through ten years | 22,949 |  |  | 22,695 |
Due after ten years | 184,761 |  |  | 176,962 |
| 226,618 |  |  | 218,489 |
Mortgage-backed securities | 8,393 |  |  | 8,061 |
Total held to maturity securities | $ | 235,011 |  |  | $ | 226,550 |
| AMORTIZED COST |  |  | FAIR VALUE |
At September 30, 2017 | (Dollars in Thousands)
Due in one year or less | $ | 1,483 |  |  | $ | 1,480 |
Due after one year through five years | 17,926 |  |  | 18,160 |
Due after five years through ten years | 144,996 |  |  | 147,832 |
Due after ten years | 285,435 |  |  | 284,257 |
| 449,840 |  |  | 451,729 |
Mortgage-backed securities | 113,689 |  |  | 112,456 |
Total held to maturity securities | $ | 563,529 |  |  | $ | 564,185 |

X
- References No definition available. + Details
Name: | us-gaap_InvestmentsDebtAndEquitySecuritiesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Debt Security -URI http://asc.fasb.org/extlink&oid=6509901 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27290-111563 Reference 3: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 30 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6379141&loc=d3e15032-111544 Reference 4: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27232-111563 Reference 5: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -Glossary Equity Security -URI http://asc.fasb.org/extlink&oid=6511694 Reference 6: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=6957658&loc=d3e62557-112803 Reference 7: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27161-111563 Reference 8: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27357-111563 Reference 9: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=73527792&loc=d3e27405-111563 + Details
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration