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SECURITIES | 6 Months Ended
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Mar. 31, 2021
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 are presented below.
| Securities Available For Sale
(Dollars in Thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
At March 31, 2021 |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |
SBA securities | $ | 166,348 |  |  | $ | 3,846 |  |  | $ | (188) |  |  | $ | 170,006 |
Obligations of states and political subdivisions | 2,807 |  |  | 10 |  |  | (1) |  |  | 2,816 |
Non-bank qualified obligations of states and political subdivisions | 288,119 |  |  | 8,285 |  |  | (682) |  |  | 295,722 |
Asset-backed securities | 453,686 |  |  | 2,726 |  |  | (3,009) |  |  | 453,403 |
Mortgage-backed securities | 553,184 |  |  | 11,613 |  |  | (5,964) |  |  | 558,833 |
Total debt securities AFS | $ | 1,464,144 |  |  | $ | 26,480 |  |  | $ | (9,844) |  |  | $ | 1,480,780 |
At September 30, 2020 |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |
SBA securities | $ | 159,722 |  |  | $ | 5,391 |  |  | $ | (158) |  |  | $ | 164,955 |
Obligations of states and political subdivisions | 825 |  |  | 16 |  |  | — |  |  | 841 |
Non-bank qualified obligations of states and political subdivisions | 314,819 |  |  | 8,978 |  |  | (23) |  |  | 323,774 |
Asset-backed securities | 329,139 |  |  | 2,015 |  |  | (6,229) |  |  | 324,925 |
Mortgage-backed securities | 439,879 |  |  | 14,567 |  |  | (839) |  |  | 453,607 |
Total debt securities AFS | $ | 1,244,384 |  |  | $ | 30,967 |  |  | $ | (7,249) |  |  | $ | 1,268,102 |
| Securities Held To Maturity
(Dollars in Thousands) | Amortized Cost |  | Gross Unrealized Gains |  | Gross Unrealized (Losses) |  | Fair Value
At March 31, 2021 |  |  |  |  |  |  |
Debt securities HTM |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 67,709 |  |  | $ | 1,083 |  |  | $ | — |  |  | $ | 68,792 |
Mortgage-backed securities | 4,403 |  |  | 99 |  |  | — |  |  | 4,502 |
Total debt securities HTM | $ | 72,112 |  |  | $ | 1,182 |  |  | $ | — |  |  | $ | 73,294 |
At September 30, 2020 |
Debt securities HTM |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 87,183 |  |  | $ | 1,040 |  |  | $ | (29) |  |  | $ | 88,194 |
Mortgage-backed securities | 5,427 |  |  | 124 |  |  | — |  |  | 5,551 |
Total debt securities HTM | $ | 92,610 |  |  | $ | 1,164 |  |  | $ | (29) |  |  | $ | 93,745 |
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Gross Unrealized (Losses) |  | Fair Value |  | Gross Unrealized (Losses) |  | Fair Value |  | Gross Unrealized (Losses)
At March 31, 2021 |  |  |  |  |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |  |  |  |  |
SBA securities | $ | 25,310 |  |  | $ | (24) |  |  | $ | 31,825 |  |  | $ | (164) |  |  | $ | 57,135 |  |  | $ | (188) |
Obligations of state and political subdivisions | 1,980 |  |  | (1) |  |  | — |  |  | — |  |  | 1,980 |  |  | (1) |
Non-bank qualified obligations of states and political subdivisions | 53,328 |  |  | (682) |  |  | — |  |  | — |  |  | 53,328 |  |  | (682) |
Asset-backed securities | 75,473 |  |  | (782) |  |  | 189,365 |  |  | (2,227) |  |  | 264,838 |  |  | (3,009) |
Mortgage-backed securities | 291,358 |  |  | (5,088) |  |  | 35,484 |  |  | (876) |  |  | 326,842 |  |  | (5,964) |
Total debt securities AFS | $ | 447,449 |  |  | $ | (6,577) |  |  | $ | 256,674 |  |  | $ | (3,267) |  |  | $ | 704,123 |  |  | $ | (9,844) |
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Gross Unrealized (Losses) |  | Fair Value |  | Gross Unrealized (Losses) |  | Fair Value |  | Gross Unrealized (Losses)
At September 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Debt securities AFS |  |  |  |  |  |  |  |  |  |  |
SBA securities | $ | 32,257 |  |  | $ | (102) |  |  | $ | 9,875 |  |  | $ | (56) |  |  | $ | 42,132 |  |  | $ | (158) |
Non-bank qualified obligations of states and political subdivisions | 6,265 |  |  | (6) |  |  | 3,103 |  |  | (17) |  |  | 9,368 |  |  | (23) |
Asset-backed securities | 106,474 |  |  | (1,089) |  |  | 178,686 |  |  | (5,140) |  |  | 285,160 |  |  | (6,229) |
Mortgage-backed securities | 138,338 |  |  | (839) |  |  | — |  |  | — |  |  | 138,338 |  |  | (839) |
Total debt securities AFS | $ | 283,334 |  |  | $ | (2,036) |  |  | $ | 191,664 |  |  | $ | (5,213) |  |  | $ | 474,998 |  |  | $ | (7,249) |
There were no debt securities HTM with a continuous loss position at March 31, 2021.
| LESS THAN 12 MONTHS |  | OVER 12 MONTHS |  | TOTAL
(Dollars in Thousands) | Fair Value |  | Gross Unrealized (Losses) |  | Fair Value |  | Gross Unrealized (Losses) |  | Fair Value |  | Gross Unrealized (Losses)
At September 30, 2020 |  |  |  |  |  |  |  |  |  |  |
Debt securities HTM |  |  |  |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 7,397 |  |  | $ | (9) |  |  | $ | 3,637 |  |  | $ | (20) |  |  | $ | 11,034 |  |  | $ | (29) |
Total debt securities HTM | $ | 7,397 |  |  | $ | (9) |  |  | $ | 3,637 |  |  | $ | (20) |  |  | $ | 11,034 |  |  | $ | (29) |
The adoption of CECL was inconsequential to debt securities AFS. At March 31, 2021, there were no ACL for debt securities AFS. At March 31, 2021, there were 49 securities AFS in an unrealized loss position. Management assessed each investment security with unrealized losses for credit impairment and determined substantially all unrealized losses on these securities were due to credit spreads and interest rates versus credit impairment. As part of that assessment, management evaluated and concluded that it is more-likely-than-not that the Company will not be required and does not intend to sell any of the securities prior to recovery of the amortized cost. 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.
| At March 31, 2021 |  | At September 30, 2020
(Dollars in Thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Securities AFS at Fair Value
Due in one year or less | $ | 245 |  |  | $ | 247 |  |  | $ | 1,385 |  |  | $ | 1,398 |
Due after one year through five years | 17,621 |  |  | 18,199 |  |  | 20,805 |  |  | 21,769 |
Due after five years through ten years | 51,152 |  |  | 52,585 |  |  | 32,441 |  |  | 34,025 |
Due after ten years | 841,942 |  |  | 850,916 |  |  | 749,874 |  |  | 757,303 |
| 910,960 |  |  | 921,947 |  |  | 804,505 |  |  | 814,495 |
Mortgage-backed securities | 553,184 |  |  | 558,833 |  |  | 439,879 |  |  | 453,607 |
Total securities AFS, at fair value | $ | 1,464,144 |  |  | $ | 1,480,780 |  |  | $ | 1,244,384 |  |  | $ | 1,268,102 |
| At March 31, 2021 |  | At September 30, 2020
(Dollars in Thousands) | Amortized Cost |  | Fair Value |  | Amortized Cost |  | Fair Value
Securities HTM at Fair Value
Due after ten years | $ | 67,709 |  |  | $ | 68,792 |  |  | $ | 87,183 |  |  | $ | 88,194 |
| 67,709 |  |  | 68,792 |  |  | 87,183 |  |  | 88,194 |
Mortgage-backed securities | 4,403 |  |  | 4,502 |  |  | 5,427 |  |  | 5,551 |
Total securities HTM, at cost | $ | 72,112 |  |  | $ | 73,294 |  |  | $ | 92,610 |  |  | $ | 93,745 |
Other investments, at cost, include equity securities without a readily determinable fair value, which are included in other assets on the Condensed Consolidated Statements of Financial Condition, and shares of stock in the Federal Reserve Bank (the "FRB") of Minneapolis and the FHLB of Des Moines. Equity Securities Equity securities without a readily determinable fair value totaled $13.7 million at March 31, 2021 and $11.0 million at September 30, 2020. FRB Stock The Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System. FRB of Minneapolis stock held by the Bank totaled $19.7 million at March 31, 2021 and September 30, 2020. These equity securities are 'restricted' in that they can only be owned by member banks. 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 FHLB and actions of their regulator, the Federal Housing Finance Agency. 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 $8.8 million and $7.5 million at March 31, 2021 and September 30, 2020, respectively. 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, FRB and FHLB stocks are 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. Equity Security Impairment For investments held at cost, impairment is evaluated on at least an annual basis on the recoverability of the par value. All other equity investments, including those under the equity method, are reviewed for other-than-temporary impairment on at least a quarterly basis. The Company recognized $1.5 million in impairment recognized for such investments for the six months ended March 31, 2021.

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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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