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SECURITIES | 12 Months Ended
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Sep. 30, 2022
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.
| Debt Securities AFS
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value
At September 30, 2022 |  |  |  |
Corporate securities | $ | 25,000 |  | $ | — |  | $ | (2,813) |  | $ | 22,187 |
SBA securities | 105,238 |  | — |  | (7,470) |  | 97,768 |
Obligations of states and political subdivisions | 2,469 |  | — |  | (125) |  | 2,344 |
Non-bank qualified obligations of states and political subdivisions | 290,754 |  | — |  | (26,971) |  | 263,783 |
Asset-backed securities | 160,806 |  | — |  | (13,016) |  | 147,790 |
Mortgage-backed securities | 1,581,452 |  | — |  | (232,455) |  | 1,348,997 |
Total debt securities AFS | $ | 2,165,719 |  | $ | — |  | $ | (282,850) |  | $ | 1,882,869 |
At September 30, 2021 |  |  |  |
Corporate securities | $ | 25,000 |  | $ | — |  | $ | — |  | $ | 25,000 |
SBA securities | 151,958 |  | 5,251 |  | — |  | 157,209 |
Obligations of states and political subdivisions | 2,497 |  | 10 |  | — |  | 2,507 |
Non-bank qualified obligations of states and political subdivisions | 266,048 |  | 3,347 |  | (1,100) |  | 268,295 |
Asset-backed securities | 393,103 |  | 3,003 |  | (1,247) |  | 394,859 |
Mortgage-backed securities | 1,016,478 |  | 9,728 |  | (9,177) |  | 1,017,029 |
Total debt securities AFS | $ | 1,855,084 |  | $ | 21,339 |  | $ | (11,524) |  | $ | 1,864,899 |
| Debt Securities HTM
(Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair Value
At September 30, 2022 |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 39,093 |  | $ | — |  | $ | (3,190) |  | $ | 35,903 |
Mortgage-backed securities | 2,589 |  | — |  | (321) |  | 2,268 |
Total debt securities HTM | $ | 41,682 |  | $ | — |  | $ | (3,511) |  | $ | 38,171 |
At September 30, 2021 |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 52,944 |  | $ | 103 |  | $ | (471) |  | $ | 52,576 |
Mortgage-backed securities | 3,725 |  | 90 |  | — |  | 3,815 |
Total debt securities HTM | $ | 56,669 |  | $ | 193 |  | $ | (471) |  | $ | 56,391 |
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)
Debt Securities AFS |  |  |  |  |  |  |  |
At September 30, 2022 |  |  |  |  |  |  |  |
Corporate securities | $ | — |  | $ | — |  |  | $ | 22,187 |  | $ | (2,813) |  |  | $ | 22,187 |  | $ | (2,813) |
SBA securities | 97,767 |  | (7,470) |  |  | — |  | — |  |  | 97,767 |  | (7,470) |
Obligations of state and political subdivisions | 2,345 |  | (125) |  |  | — |  | — |  |  | 2,345 |  | (125) |
Non-bank qualified obligations of states and political subdivisions | 195,816 |  | (19,743) |  |  | 67,967 |  | (7,228) |  |  | 263,783 |  | (26,971) |
Asset-backed securities | 64,886 |  | (1,838) |  |  | 82,904 |  | (11,178) |  |  | 147,790 |  | (13,016) |
Mortgage-backed securities | 816,657 |  | (106,583) |  |  | 532,340 |  | (125,872) |  |  | 1,348,997 |  | (232,455) |
Total debt securities AFS | $ | 1,177,471 |  | $ | (135,759) |  |  | $ | 705,398 |  | $ | (147,091) |  |  | $ | 1,882,869 |  | $ | (282,850) |
At September 30, 2021 |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 101,046 |  | $ | (1,100) |  |  | $ | — |  | $ | — |  |  | $ | 101,046 |  | $ | (1,100) |
Asset-backed securities | 127,110 |  | (283) |  |  | 91,553 |  | (964) |  |  | 218,663 |  | (1,247) |
Mortgage-backed securities | 759,035 |  | (7,418) |  |  | 60,792 |  | (1,759) |  |  | 819,827 |  | (9,177) |
Total debt securities AFS | $ | 987,191 |  | $ | (8,801) |  |  | $ | 152,345 |  | $ | (2,723) |  |  | $ | 1,139,536 |  | $ | (11,524) |
Debt Securities HTM |  |  |  |  |  |  |  |
At September 30, 2022 |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 3,984 |  | $ | (300) |  |  | $ | 31,919 |  | $ | (2,890) |  |  | $ | 35,903 |  | $ | (3,190) |
Mortgage-backed securities | 2,268 |  | (321) |  |  | — |  | — |  |  | 2,268 |  | (321) |
Total debt securities HTM | $ | 6,252 |  | $ | (621) |  |  | $ | 31,919 |  | $ | (2,890) |  |  | $ | 38,171 |  | $ | (3,511) |
At September 30, 2021 |  |  |  |  |  |  |  |
Non-bank qualified obligations of states and political subdivisions | $ | 26,096 |  | $ | (471) |  |  | $ | — |  | $ | — |  |  | $ | 26,096 |  | $ | (471) |
Total debt securities HTM | $ | 26,096 |  | $ | (471) |  |  | $ | — |  | $ | — |  |  | $ | 26,096 |  | $ | (471) |
At September 30, 2022, there were 195 securities AFS in an unrealized loss position. All of the mortgage-backed securities ("MBS") in an unrealized loss position at September 30, 2022 were government guaranteed. Management assessed each investment security with unrealized losses for credit loss and determined substantially all unrealized losses on these securities were due to credit spreads and interest rates versus credit loss. 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. At September 30, 2022, there was no ACL for debt securities AFS. 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.
| At September 30,
(Dollars in thousands) | 2022 |  | 2021
Securities AFS at Fair Value | Amortized Cost | Fair Value |  | Amortized Cost | Fair Value
Due in one year or less | $ | 718 |  | $ | 715 |  |  | $ | 810 |  | $ | 822 |
Due after one year through five years | 9,921 |  | 9,395 |  |  | 13,026 |  | 13,378 |
Due after five years through ten years | 89,921 |  | 81,819 |  |  | 50,785 |  | 52,357 |
Due after ten years | 483,707 |  | 441,943 |  |  | 773,985 |  | 781,313 |
| 584,267 |  | 533,872 |  |  | 838,606 |  | 847,870 |
Mortgage-backed securities | 1,581,452 |  | 1,348,997 |  |  | 1,016,478 |  | 1,017,029 |
Total securities AFS, at fair value | $ | 2,165,719 |  | $ | 1,882,869 |  |  | $ | 1,855,084 |  | $ | 1,864,899 |
| At September 30,
(Dollars in thousands) | 2022 |  | 2021
Securities HTM at Fair Value | Amortized Cost | Fair Value |  | Amortized Cost | Fair Value
Due after ten years | $ | 39,093 |  | $ | 35,903 |  |  | $ | 52,944 |  | $ | 52,576 |
| 39,093 |  | 35,903 |  |  | 52,944 |  | 52,576 |
Mortgage-backed securities | 2,589 |  | 2,268 |  |  | 3,725 |  | 3,815 |
Total securities HTM, at cost | $ | 41,682 |  | $ | 38,171 |  |  | $ | 56,669 |  | $ | 56,391 |
Activity related to the sale of securities available for sale is summarized below.
| Fiscal Year Ended September 30,
(Dollars in thousands) | 2022 |  | 2021 |  | 2020
Available For Sale |  |  |  |  |
Proceeds from sales | $ | 265,951 |  |  | $ | 50,468 |  |  | $ | 4,904 |
Gross gains on sales | 1,742 |  |  | 179 |  |  | 51 |
Gross losses on sales | 1,588 |  |  | 173 |  |  | — |
Net gain (loss) on securities AFS | $ | 154 |  |  | $ | 6 |  |  | $ | 51 |
There was no activity related to the sale of securities held to maturity during the fiscal years ended September 30, 2022, 2021, and 2020. No securities were pledged as collateral for public funds on deposit at September 30, 2022 and 2021. No securities were pledged as collateral for individual, trust and estate deposits at September 30, 2022 and 2021. Equity Securities The Company held $2.9 million and $12.7 million in marketable equity securities at September 30, 2022 and 2021, respectively. The Company recognized $3.8 million and $3.4 million in unrealized loss on marketable equity securities during the fiscal years ended September 30, 2022 and 2021, respectively, which is attributable to an investee becoming publicly traded during fiscal year 2021. All other marketable equity securities and related activity were insignificant for the fiscal years ended September 30, 2022 and 2021. There was one marketable equity security sold during fiscal year 2022 for a $0.3 million gain. Non-marketable equity securities with a readily determinable fair value totaled $7.2 million and $4.6 million at September 30, 2022 and 2021, respectively. The Company recognized $1.1 million and $0.6 million in unrealized gains during the fiscal years ended September 30, 2022 and 2021, respectively. No such securities were sold during fiscal year 2022. Non-marketable equity securities without readily determinable fair value totaled $18.2 million and $16.0 million at September 30, 2022 and 2021, respectively. There were four securities sold during the fiscal year ended September 30, 2022 for a $1.7 million loss. 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 September 30, 2022 and 2021. These equity securities are 'restricted' in that they can only be owned by member banks. At fiscal year-end 2022 and 2021, the Company pledged securities with fair values of approximately $924.2 million and $236.1 million against FRB advances, respectively. ` Included in interest and dividend income from other investments is $1.2 million and $1.5 million related to dividend income on FRB stock for the fiscal years ended September 30, 2022 and 2021, respectively. FHLB Stock The Company’s borrowings from the FHLB are secured by 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 $9.1 million and $8.7 million at September 30, 2022 and 2021, respectively. At fiscal year-end 2022 and 2021, the Company pledged securities with fair values of approximately $804.0 million and $644.7 million, respectively, to be used against FHLB advances. In addition, a combination of qualifying residential and other real estate loans of zero and zero were pledged as collateral at September 30, 2022 and 2021, respectively. Included in interest and dividend income from other investments is $0.3 million, $0.2 million and $0.8 million related to dividend income on FHLB stock for the fiscal years ended September 30, 2022, 2021 and 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. Equity Security Impairment The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate 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 zero, $2.6 million, and $1.3 million in impairment for such investments for the fiscal years ended September 30, 2022, 2021, and 2020, 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 https://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 https://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 https://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 https://asc.fasb.org/subtopic&trid=2176304 Reference 5: http://www.xbrl.org/2003/role/disclosureRef -Publisher SEC -Name Regulation S-K (SK) -Number 229 -Section 1403 -Paragraph (b) + Details
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