FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2018

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, 2018 and September 30, 2017. 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, 2018
	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	52,097		—		52,097		—		—		—		—		—
Obligations of states and political subdivisions	14,397		—		14,397		—		3,926		—		3,926		—
Non-bank qualified obligations of states and political subdivisions	1,206,366		—		1,206,366		—		214,563		—		214,563		—
Asset-backed securities	144,151		—		144,151		—		—		—		—		—
Mortgage-backed securities	654,890		—		654,890		—		8,061		—		8,061		—
Total debt securities	2,071,901		—		2,071,901		—		226,550		—		226,550		—
Common equities and mutual funds	1,851		1,851		—		—		—		—		—		—
Total securities	$	2,073,752	$	1,851	$	2,071,901	$	—	$	226,550	$	—	$	226,550	$	—



	Fair Value At September 30, 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	57,871		—		57,871		—		—		—		—		—
Obligations of states and political subdivisions	—		—		—		—		19,368		—		19,368		—
Non-bank qualified obligations of states and political subdivisions	950,829		—		950,829		—		432,361		—		432,361		—
Asset-backed securities	96,832		—		96,832		—		—		—		—		—
Mortgage-backed securities	586,454		—		586,454		—		112,456		—		112,456		—
Total debt securities	1,691,986		—		1,691,986		—		564,185		—		564,185		—
Common equities and mutual funds	1,445		1,445		—		—		—		—		—		—
Total securities	$	1,693,431	$	1,445	$	1,691,986	$	—	$	564,185	$	—	$	564,185	$	—

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 March 31, 2018 and September 30, 2017.



	Fair Value At March 31, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
1-4 family residential mortgage loans	$	110	$	—	$	—	$	110
Total Impaired Loans	110		—		—		110
Foreclosed Assets, net	30,050		—		—		30,050
Total	$	30,160	$	—	$	—	$	30,160



	Fair Value At September 30, 2017
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Foreclosed Assets, net	292		—		—		292
Total	$	292	$	—	$	—	$	292

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information About Level 3 Fair Value Measurements

(Dollars in Thousands)

Fair Value at
March 31, 2018

Fair Value at
September 30, 2017

Valuation
Technique

Unobservable Input

Range of Inputs

Impaired Loans, net

110

—

Market approach

Appraised values ⁽¹⁾

4.00 - 10.00%

Foreclosed Assets, net

30,050

292

Market approach

Appraised values ⁽¹⁾

4.00 - 10.00%


⁽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, 2018 and September 30, 2017.



	March 31, 2018
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	107,563	$	107,563	$	107,563	$	—	$	—

Securities available for sale	2,073,752		2,073,752		1,851		2,071,901		—
Securities held to maturity	235,011		226,550		—		226,550		—
Total securities	2,308,763		2,300,302		1,851		2,298,451		—

Loans receivable:
One to four family residential mortgage loans	205,994		205,553		—		—		205,553
Commercial and multi-family real estate loans	685,457		679,483		—		—		679,483
Agricultural real estate loans	36,460		35,992		—		—		35,992
Consumer loans	281,371		299,959		—		—		299,959
Commercial operating loans	47,461		46,987		—		—		46,987
Agricultural operating loans	22,313		22,226		—		—		22,226
CML insurance premium finance loans	240,640		240,691		—		—		240,691
Total loans receivable	1,519,696		1,530,891		—		—		1,530,891

Federal Home Loan Bank stock	17,846		17,846		—		17,846		—
Accrued interest receivable	17,604		17,604		17,604		—		—

Financial liabilities
Non-interest bearing demand deposits	2,850,886		2,850,886		2,850,886		—		—
Interest bearing demand deposits, savings, and money markets	236,812		236,812		236,812		—		—
Certificates of deposit	71,712		70,907		—		70,907		—
Wholesale non-maturing deposits	63,083		63,083		63,083		—		—
Wholesale certificates of deposit	118,004		117,613		—		117,613		—
Total deposits	3,340,497		3,339,301		3,150,781		188,520		—

Federal funds purchased	314,000		314,000		314,000		—		—
Securities sold under agreements to repurchase	1,714		1,714		—		1,714		—
Capital lease	1,907		1,907		—		1,907		—
Trust preferred securities	10,310		10,464		—		10,464		—
Subordinated debentures	73,418		75,188		—		75,188		—
Accrued interest payable	1,315		1,315		1,315		—		—



	September 30, 2017
	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	1,267,586	$	1,267,586	$	1,267,586	$	—	$	—

Securities available for sale	1,693,431		1,693,431		1,445		1,691,986		—
Securities held to maturity	563,529		564,185		—		564,185		—
Total securities	2,256,960		2,257,616		1,445		2,256,171		—

Loans receivable:
One to four family residential mortgage loans	196,706		196,970		—		—		196,970
Commercial and multi-family real estate loans	585,510		576,330		—		—		576,330
Agricultural real estate loans	61,800		61,584		—		—		61,584
Consumer loans	163,004		163,961		—		—		163,961
Commercial operating loans	35,759		35,723		—		—		35,723
Agricultural operating loans	33,594		32,870		—		—		32,870
CML insurance premium finance loans	250,459		250,964		—		—		250,964
Total loans receivable	1,326,832		1,318,402		—		—		1,318,402

Federal Home Loan Bank stock	61,123		61,123		—		61,123		—
Accrued interest receivable	19,380		19,380		19,380		—		—

Financial liabilities
Non-interest bearing demand deposits	2,454,057		2,454,057		2,454,057		—		—
Interest bearing demand deposits, savings, and money markets	169,557		169,557		169,557		—		—
Certificates of deposit	123,637		123,094		—		123,094		—
Wholesale non-maturing deposits	18,245		18,245		18,245		—		—
Wholesale certificates of deposits	457,928		457,509		—		457,509		—
Total deposits	3,223,424		3,222,462		2,641,859		580,603		—

Advances from Federal Home Loan Bank	415,000		415,003		—		415,003		—
Federal funds purchased	987,000		987,000		987,000		—		—
Securities sold under agreements to repurchase	2,472		2,472		—		2,472		—
Capital lease	1,938		1,938		—		1,938		—
Trust preferred securities	10,310		10,447		—		10,447		—
Subordinated debentures	73,347		76,500		—		76,500		—
Accrued interest payable	2,280		2,280		2,280		—		—