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SECURITIES | 12 Months Ended
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Sep. 30, 2019
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES On October 1, 2018, the Company adopted ASU 2016-01 on a prospective basis, which redefined the definition of equity securities and required their segregation from available for sale ("AFS") debt securities. While changes in the fair value of debt securities continue to be recorded in the equity category of accumulated other comprehensive income, the new guidance requires that changes in fair value of equity securities with readily determinable fair value be recorded in current earnings. As required by the new guidance, the unrealized gain in fair value on equity securities with readily determinable fair value (recorded in accumulated other comprehensive income at September 30, 2018) was reclassified to retained earnings on October 1, 2018. The amount of the reclassification was $0.5 million, net of tax. Equity securities with readily determinable fair value include mutual funds of $1.8 million at cost and $1.9 million at fair value at September 30, 2019. The amortized cost, gross unrealized gains and losses and estimated fair values of AFS and HTM debt securities at September 30, 2019 and September 30, 2018 are presented below.
At September 30, 2019 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
(Dollars in Thousands) |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |
SBA securities | $ | 182,327 |  |  | $ | 3,655 |  |  | $ | — |  |  | $ | 185,982 |
Obligation of states and political subdivisions | 858 |  |  | 16 |  |  | — |  |  | 874 |
Non-bank qualified obligations of states and political subdivisions | 396,430 |  |  | 5,030 |  |  | (903 | ) |  | 400,557 |
Asset-backed securities | 305,603 |  |  | 262 |  |  | (3,331 | ) |  | 302,534 |
Mortgage-backed securities | 378,670 |  |  | 5,731 |  |  | (1,855 | ) |  | 382,546 |
Total debt securities AFS | $ | 1,263,888 |  |  | $ | 14,694 |  |  | $ | (6,089 | ) |  | $ | 1,272,493 |
Common equities and mutual funds(1)(2) | $ | 2,435 |  |  | $ | 171 |  |  | $ | — |  |  | $ | 2,606 |
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2019 and September 30, 2018. (2) ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at September 30, 2019.
At September 30, 2018 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
(Dollars in Thousands) |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |
SBA securities | $ | 45,591 |  |  | $ | 1 |  |  | $ | (1,255 | ) |  | $ | 44,337 |
Obligation of states and political subdivisions | 17,154 |  |  | 49 |  |  | (293 | ) |  | 16,910 |
Non-bank qualified obligations of states and political subdivisions | 1,140,884 |  |  | 826 |  |  | (31,825 | ) |  | 1,109,885 |
Asset-backed securities | 310,700 |  |  | 2,585 |  |  | (257 | ) |  | 313,028 |
Mortgage-backed securities | 378,301 |  |  | — |  |  | (14,236 | ) |  | 364,065 |
Total debt securities AFS | 1,892,630 |  |  | 3,461 |  |  | (47,866 | ) |  | 1,848,225 |
Common equities and mutual funds(1) | 3,172 |  |  | 635 |  |  | (7 | ) |  | 3,800 |
Total AFS securities(1) | $ | 1,895,802 |  |  | $ | 4,096 |  |  | $ | (47,873 | ) |  | $ | 1,852,025 |
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2019 and September 30, 2018.
At September 30, 2019 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
(Dollars in Thousands) |  |  |  |  |  |  |
Debt securities HTM |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 127,582 |  |  | $ | 108 |  |  | $ | (1,403 | ) |  | $ | 126,287 |
Mortgage-backed securities | 7,182 |  |  | 14 |  |  | (13 | ) |  | 7,183 |
Total HTM securities | $ | 134,764 |  |  | $ | 122 |  |  | $ | (1,416 | ) |  | $ | 133,470 |
At September 30, 2018 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
(Dollars in Thousands) |  |  |  |  |  |  |
Debt securities HTM |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 163,893 |  |  | $ | — |  |  | $ | (10,758 | ) |  | $ | 153,135 |
Mortgage-backed securities | 7,850 |  |  | — |  |  | (422 | ) |  | 7,428 |
Total HTM securities | $ | 171,743 |  |  | $ | — |  |  | $ | (11,180 | ) |  | $ | 160,563 |
Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary. This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows. Management also determines whether the Company intends 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 basis 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 collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2019, and 2018, were as follows:
At September 30, 2019 | LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
Debt securities AFS |  |  |  |  |  |  |  |  |  |  |
SBA securities | $ | 10,262 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,262 |  |  | $ | — |
Obligations of states and political subdivisions | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Non-bank qualified obligations of states and political subdivisions | 66,326 |  |  | (177 | ) |  | 55,428 |  |  | (726 | ) |  | 121,754 |  |  | (903 | )
Asset-backed securities | 158,176 |  |  | (1,823 | ) |  | 93,259 |  |  | (1,508 | ) |  | 251,435 |  |  | (3,331 | )
Mortgage-backed securities | 1,713 |  |  | (1 | ) |  | 89,634 |  |  | (1,854 | ) |  | 91,347 |  |  | (1,855 | )
Total debt securities AFS | $ | 236,477 |  |  | $ | (2,001 | ) |  | $ | 238,321 |  |  | $ | (4,088 | ) |  | $ | 474,798 |  |  | $ | (6,089 | )
Common equities and mutual funds(1)(2) | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | — |
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2019 and September 30, 2018. (2) ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at September 30, 2019.
At September 30, 2018 | LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
Debt securities AFS |  |  |  |  |  |  |  |  |  |  |
SBA securities | $ | 43,097 |  |  | $ | (1,255 | ) |  | $ | — |  |  | $ | — |  |  | $ | 43,097 |  |  | $ | (1,255 | )
Obligations of state and political subdivisions | 11,036 |  |  | (279 | ) |  | 881 |  |  | (14 | ) |  | 11,917 |  |  | (293 | )
Non-bank qualified obligations of states and political subdivisions | 626,693 |  |  | (13,539 | ) |  | 358,095 |  |  | (18,286 | ) |  | 984,788 |  |  | (31,825 | )
Asset-backed securities | 146,638 |  |  | (257 | ) |  | — |  |  | — |  |  | 146,638 |  |  | (257 | )
Mortgage-backed securities | 121,217 |  |  | (3,292 | ) |  | 242,849 |  |  | (10,944 | ) |  | 364,066 |  |  | (14,236 | )
Total debt securities AFS | 948,681 |  |  | (18,622 | ) |  | 601,825 |  |  | (29,244 | ) |  | 1,550,506 |  |  | (47,866 | )
Common equities and mutual funds(1) | 1,818 |  |  | (7 | ) |  | — |  |  | — |  |  | 1,818 |  |  | (7 | )
Total debt AFS securities(1) | $ | 950,499 |  |  | $ | (18,629 | ) |  | $ | 601,825 |  |  | $ | (29,244 | ) |  | $ | 1,552,324 |  |  | $ | (47,873 | )
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2019 and September 30, 2018.
At September 30, 2019 | LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
Debt securities HTM |  |  |  |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 5,967 |  |  | $ | (6 | ) |  | $ | 109,368 |  |  | $ | (1,397 | ) |  | $ | 115,335 |  |  | $ | (1,403 | )
Mortgage-backed securities | 1,471 |  |  | — |  |  | 1,803 |  |  | (13 | ) |  | 3,274 |  |  | (13 | )
Total HTM securities | $ | 7,438 |  |  | $ | (6 | ) |  | $ | 111,171 |  |  | $ | (1,410 | ) |  | $ | 118,609 |  |  | $ | (1,416 | )
At September 30, 2018 | LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
Debt securities HTM |  |  |  |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 5,767 |  |  | $ | (287 | ) |  | $ | 147,368 |  |  | $ | (10,471 | ) |  | $ | 153,135 |  |  | $ | (10,758 | )
Mortgage-backed securities | — |  |  | — |  |  | 7,428 |  |  | (422 | ) |  | 7,428 |  |  | (422 | )
Total HTM securities | $ | 5,767 |  |  | $ | (287 | ) |  | $ | 154,796 |  |  | $ | (10,893 | ) |  | $ | 160,563 |  |  | $ | (11,180 | )
At September 30, 2019 and 2018, the Company's investment portfolio included securities with current unrealized losses that have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because (i) the declines in fair value were due to changes in market interest rates, not in estimated cash flows, (ii) the Company does not intend or has not made a decision to sell these securities and (iii) 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 September 30, 2019 or 2018. The amortized cost and fair value of debt securities by contractual maturity 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 MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
AFS Securities at Fair Value |  |  |
At September 30, 2019 | Amortized Cost |  | Fair Value
(Dollars in Thousands) |  |  |
Due in one year or less | $ | — |  |  | $ | — |
Due after one year through five years | 16,749 |  |  | 17,143 |
Due after five years through ten years | 50,263 |  |  | 51,840 |
Due after ten years | 818,206 |  |  | 820,964 |
| 885,218 |  |  | 889,947 |
Mortgage-backed securities | 378,670 |  |  | 382,546 |
Total securities at fair value | $ | 1,263,888 |  |  | $ | 1,272,493 |
At September 30, 2018 | Amortized Cost |  | Fair Value
(Dollars in Thousands) |  |  |
Due in one year or less | $ | 2,532 |  |  | $ | 2,529 |
Due after one year through five years | 41,415 |  |  | 41,504 |
Due after five years through ten years | 352,099 |  |  | 350,143 |
Due after ten years | 1,118,283 |  |  | 1,089,984 |
| 1,514,329 |  |  | 1,484,160 |
Mortgage-backed securities | 378,301 |  |  | 364,065 |
Common equities and mutual funds(1) | 3,172 |  |  | 3,800 |
Total securities at fair value | $ | 1,895,802 |  |  | $ | 1,852,025 |
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2019 and September 30, 2018
HTM Securities at Fair Value |  |  |
At September 30, 2019 | Amortized Cost |  | Fair Value
(Dollars in Thousands) |  |  |
Due after ten years | $ | 127,582 |  |  | $ | 126,287 |
| 127,582 |  |  | 126,287 |
Mortgage-backed securities | 7,182 |  |  | 7,183 |
Total HTM securities at cost | $ | 134,764 |  |  | $ | 133,470 |
At September 30, 2018 | Amortized Cost |  | Fair Value
(Dollars in Thousands) |  |  |
Due after ten years | $ | 163,893 |  |  | $ | 153,135 |
| 163,893 |  |  | 153,135 |
Mortgage-backed securities | 7,850 |  |  | 7,428 |
Total HTM securities at cost | $ | 171,743 |  |  | $ | 160,563 |
Activities related to the sale of securities are summarized below.
Fiscal Year ended | 2019 |  | 2018 |  | 2017
(Dollars in Thousands) |  |  |  |  |
Available For Sale |  |  |  |  |
Proceeds from sales | $ | 755,616 |  |  | $ | 596,758 |  |  | $ | 457,306 |
Gross gains on sales | 6,006 |  |  | 2,551 |  |  | 4,091 |
Gross losses on sales | 5,277 |  |  | 10,728 |  |  | 4,628 |
Net gain (loss) on available for sale securities | $ | 729 |  |  | $ | (8,177 | ) |  | $ | (537 | )
Held To Maturity |  |  |  |  |
Net carrying amount of securities sold | $ | — |  |  | $ | — |  |  | $ | 5,826 |
Gross realized gain on sales | — |  |  | — |  |  | 92 |
Gross realized losses on sales | — |  |  | — |  |  | 48 |
Net gain on held to maturity securities | $ | — |  |  | $ | — |  |  | $ | 44 |
During the fiscal 2018 fourth quarter, the Company completed a balance sheet restructuring related to the closing of the Crestmark Acquisition, selling approximately $260 million of lower-yielding AFS securities. Securities with fair values of approximately $21.9 million and $8.0 million at September 30, 2019 and 2018, respectively, were pledged as collateral for public funds on deposit. Securities with fair values of approximately $4.8 million and $5.9 million at September 30, 2019, and 2018, respectively, were pledged as collateral for individual, trust and estate deposits. Federal Home Loan Bank ("FHLB") Stock The Company’s borrowings from the FHLB are secured by a blanket collateral agreement with respect to a percentage of unencumbered loans and the pledge of specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities. The investments in the FHLB stock are required investments related to the Company’s membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLBs and actions of their regulator, the Federal Housing Finance Agency. The Company periodically evaluates investments for other than temporary impairment. There was no impairment of this investment in 2019, 2018 or 2017. The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $30.9 million and $23.4 million at September 30, 2019 and 2018, respectively. At fiscal year end 2019 and 2018, the Company pledged securities with fair values of approximately $812.2 million and $1.06 billion, respectively, against specific FHLB advances. In addition, a combination of qualifying residential and other real estate loans of approximately $928.8 million and $756.0 million were pledged as collateral at September 30, 2019 and 2018, respectively. Included in Interest and Dividend Income from other investments is $1.0 million, $1.1 million and $0.5 million related to dividend income on FHLB stock for the fiscal years ended September 30, 2019, 2018 and 2017, respectively.

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- Definition The entire disclosure for investments in certain debt and equity securities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2209399 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 946 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2324412 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 320 -URI http://asc.fasb.org/topic&trid=2196928 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 940 -SubTopic 320 -URI http://asc.fasb.org/subtopic&trid=2176304 + Details
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