XML 33 R13.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

SECURITIES | 3 Months Ended
--- | ---
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
SECURITIES | SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities at December 31, 2019 and September 30, 2019 are presented below.
At December 31, 2019 | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
(Dollars in Thousands) |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |
SBA securities | $ | 178,500 |  |  | $ | 2,446 |  |  | $ | (26 | ) |  | $ | 180,920 |
Obligations of states and political subdivisions | 858 |  |  | 16 |  |  | — |  |  | 874 |
Non-bank qualified obligations of states and political subdivisions | 369,676 |  |  | 5,236 |  |  | (923 | ) |  | 373,989 |
Asset-backed securities | 302,426 |  |  | 195 |  |  | (5,801 | ) |  | 296,820 |
Mortgage-backed securities | 358,070 |  |  | 5,518 |  |  | (1,468 | ) |  | 362,120 |
Total debt securities AFS | $ | 1,209,530 |  |  | $ | 13,411 |  |  | $ | (8,218 | ) |  | $ | 1,214,723 |
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 |
Obligations 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 |
At December 31, 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 | $ | 116,313 |  |  | $ | 104 |  |  | $ | (1,292 | ) |  | $ | 115,125 |
Mortgage-backed securities | 6,804 |  |  | 2 |  |  | (32 | ) |  | 6,774 |
Total debt securities HTM | $ | 123,117 |  |  | $ | 106 |  |  | $ | (1,324 | ) |  | $ | 121,899 |
At September 30, 2019 | Amortized Cost |  | Gross Unrealized Gain |  | 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 debt securities HTM | $ | 134,764 |  |  | $ | 122 |  |  | $ | (1,416 | ) |  | $ | 133,470 |
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 and 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 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. GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: AFS, 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 had no trading securities at December 31, 2019 or September 30, 2019. 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 December 31, 2019 and September 30, 2019, were as follows:
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At December 31, 2019 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
(Dollars in Thousands) |  |  |  |  |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |  |  |  |  |
SBA securities | $ | 13,583 |  |  | $ | (26 | ) |  | $ | — |  |  | $ | — |  |  | $ | 13,583 |  |  | $ | (26 | )
Non-bank qualified obligations of states and political subdivisions | 60,135 |  |  | (226 | ) |  | 50,431 |  |  | (697 | ) |  | 110,566 |  |  | (923 | )
Asset-backed securities | 147,594 |  |  | (1,920 | ) |  | 124,114 |  |  | (3,881 | ) |  | 271,708 |  |  | (5,801 | )
Mortgage-backed securities | 1,704 |  |  | — |  |  | 85,715 |  |  | (1,468 | ) |  | 87,419 |  |  | (1,468 | )
Total debt securities AFS | $ | 223,016 |  |  | $ | (2,172 | ) |  | $ | 260,260 |  |  | $ | (6,046 | ) |  | $ | 483,276 |  |  | $ | (8,218 | )
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At September 30, 2019 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
(Dollars in Thousands) |  |  |  |  |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |  |  |  |  |
SBA securities | $ | 10,262 |  |  | $ | — |  |  | $ | — |  |  | $ | — |  |  | $ | 10,262 |  |  | $ | — |
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 | )
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At December 31, 2019 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
(Dollars in Thousands) |
Debt securities HTM |  |  |  |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 5,686 |  |  | $ | (3 | ) |  | $ | 99,199 |  |  | $ | (1,289 | ) |  | $ | 104,885 |  |  | $ | (1,292 | )
Mortgage-backed securities | 3,525 |  |  | (13 | ) |  | 1,635 |  |  | (19 | ) |  | 5,160 |  |  | (32 | )
Total debt securities HTM | $ | 9,211 |  |  | $ | (16 | ) |  | $ | 100,834 |  |  | $ | (1,308 | ) |  | $ | 110,045 |  |  | $ | (1,324 | )
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
At September 30, 2019 | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses) |  | Fair Value |  | Unrealized (Losses)
(Dollars in Thousands) |  |  |  |  |  |  |  |  |  |  |
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 debt securities HTM | $ | 7,438 |  |  | $ | (6 | ) |  | $ | 111,171 |  |  | $ | (1,410 | ) |  | $ | 118,609 |  |  | $ | (1,416 | )
At December 31, 2019, the 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 December 31, 2019. The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features that allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities ("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.
Securities AFS at Fair Value | Amortized Cost |  | Fair Value
At December 31, 2019
(Dollars in Thousands) |  |  |
Due in one year or less | $ | 666 |  |  | $ | 667 |
Due after one year through five years | 16,081 |  |  | 16,403 |
Due after five years through ten years | 49,732 |  |  | 50,850 |
Due after ten years | 784,981 |  |  | 784,683 |
| 851,460 |  |  | 852,603 |
Mortgage-backed securities | 358,070 |  |  | 362,120 |
Total securities AFS, at fair value | $ | 1,209,530 |  |  | $ | 1,214,723 |
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 AFS, at fair value | $ | 1,263,888 |  |  | $ | 1,272,493 |
Securities HTM at Fair Value | Amortized Cost |  | Fair Value
At December 31, 2019
(Dollars in Thousands) |  |  |
Due after ten years | $ | 116,313 |  |  | $ | 115,125 |
| 116,313 |  |  | 115,125 |
Mortgage-backed securities | 6,804 |  |  | 6,774 |
Total securities HTM, at cost | $ | 123,117 |  |  | $ | 121,899 |
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 securities HTM, at cost | $ | 134,764 |  |  | $ | 133,470 |
Other investments, at cost, which are included in other assets on the consolidated statement of financial condition, include equity securities without a readily determinable fair value and shares of stock in the FHLB of Des Moines. Equity securities without a readily determinable fair value totaled $9.5 million at December 31, 2019 and $6.5 million at September 30, 2019. FHLB of Des Moines stock held by MetaBank at December 31, 2019 and September 30, 2019 totaled $13.8 million and $30.9 million, respectively. The decrease in FHLB stock directly correlates with lower short-term borrowings balances at December 31, 2019 compared to September 30, 2019. The Company’s wholly-owned subsidiary, MetaBank, is required by federal law to maintain FHLB stock as a member of FHLB of Des Moines. These equity securities are ‘restricted’ in that they can only be sold back to the respective institution from which they were acquired or another member institution at par. Therefore, FHLB stock is less liquid than other marketable equity securities, and the fair value approximates cost. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. No impairment was recognized for such investments for the three months ended December 31, 2019.

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://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
Name: | us-gaap_InvestmentsInDebtAndMarketableEquitySecuritiesAndCertainTradingAssetsDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration