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FAIR VALUE OF FINANCIAL INSTRUMENTS
 6 Months Ended
Mar. 31, 2022
Fair Value Disclosures [Abstract]  
FAIR VALUE OF FINANCIAL INSTRUMENTS FAIR VALUES OF FINANCIAL INSTRUMENTS
ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.

The fair value hierarchy is as follows:

Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.

Debt Securities Available for Sale and Held to Maturity. Debt securities available for sale are recorded at fair value on a recurring basis and debt securities held to maturity are carried at amortized cost.
 
The fair value of debt securities available for sale, categorized primarily as Level 2, is recorded using prices obtained from independent asset pricing services that are based on observable transactions, but not quoted markets. Management reviews the prices obtained from independent asset pricing services for unusual fluctuations and compares to current market trading activity.
Equity Securities. Marketable equity securities and certain non-marketable equity securities are recorded at fair value on a recurring basis. The fair values of marketable equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).

The following tables summarize the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis:
 Fair Value At March 31, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$23,250 $— $23,250 $— 
SBA securities137,400 — 137,400 — 
Obligations of states and political subdivisions2,706 — 2,706 — 
Non-bank qualified obligations of states and political subdivisions240,423 — 240,423 — 
Asset-backed securities353,581 — 353,581 — 
Mortgage-backed securities1,286,118 — 1,286,118 — 
Total debt securities AFS$2,043,478 $— $2,043,478 $— 
Common equities and mutual funds(1)
$3,853 $3,853 $— $— 
Non-marketable equity securities(2)
$6,165 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2022 and September 30, 2021.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

 Fair Value At September 30, 2021
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$25,000 $— $25,000 $— 
SBA securities157,209 — 157,209 — 
Obligations of states and political subdivisions2,507 — 2,507 — 
Non-bank qualified obligations of states and political subdivisions268,295 — 268,295 — 
Asset-backed securities394,859 — 394,859 — 
Mortgage-backed securities1,017,029 — 1,017,029 — 
Total debt securities AFS$1,864,899 $— $1,864,899 $— 
Common equities and mutual funds(1)
$12,668 $12,668 $— $— 
Non-marketable equity securities(2)
$4,560 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2022 and September 30, 2021.
(2) Consists of certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

Foreclosed Real Estate and Repossessed Assets. Real estate properties and repossessed assets are initially recorded at the fair value less selling costs at the date of foreclosure, establishing a new cost basis. The carrying amount represents the lower of the new cost basis or the fair value less selling costs of foreclosed assets that were measured at fair value subsequent to their initial classification as foreclosed assets.

Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. However, if a loan or lease is individually evaluated for risk of credit loss and repayment is expected to be solely provided by the values of the underlying collateral, the Company measures fair value on a nonrecurring basis. Fair value is determined by the fair value of the underlying collateral less estimated costs to sell. The fair value of the collateral is determined based on internal estimates and/or assessments provided by third-party appraisers and the valuation relies on discount rates ranging from 4% to 35%.
The following table summarizes the assets of the Company that are measured at fair value in the Condensed Consolidated Statements of Financial Condition on a non-recurring basis:
 Fair Value At March 31, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$8,006 $— $— $8,006 
    Total loans and leases, net individually evaluated
    for credit loss		8,006 — — 8,006 
Foreclosed assets, net112 — — 112 
Total$8,118 $— $— $8,118 

 Fair Value At September 30, 2021
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$3,404 $— $— $3,404 
Community banking9,371 — — 9,371 
    Total loans and leases, net individually evaluated
    for credit loss		12,775 — — 12,775 
Foreclosed assets, net2,077 — — 2,077 
Total$14,852 $— $— $14,852 

 Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)
Fair Value at
March 31, 2022
Fair Value at
September 30, 2021
Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$8,006 12,775 Market approach
Appraised values(1)
4% - 35%
Foreclosed assets, net$112 2,077 Market approach
Appraised values(1)
9% - 20%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs and other inputs in a range of 4% to 35%.

Management discloses the estimated fair value of financial instruments, including assets and liabilities on and off the Condensed Consolidated Statements of Financial Condition, for which it is practicable to estimate fair value. These fair value estimates were made at March 31, 2022 and September 30, 2021 based on relevant market information and information about financial instruments. Fair value estimates are intended to represent the price at which an asset could be sold or a liability could be settled. However, since there is no active market for certain financial instruments of the Company, the estimates of fair value are subjective in nature, involve uncertainties, and include matters of significant judgment. Changes in assumptions as well as tax considerations could significantly affect the estimated values. Accordingly, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
The following tables present the carrying amount and estimated fair value of the financial instruments held by the Company:
 At March 31, 2022
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$237,680 $237,680 $237,680 $— $— 
Debt securities available for sale2,043,478 2,043,478 — 2,043,478 — 
Debt securities held to maturity47,287 45,436 — 45,436 — 
Common equities and mutual funds(1)
3,853 3,853 3,853 — — 
Non-marketable equity securities(1)(2)
24,114 24,114 — 17,949 — 
Loans held for sale31,410 31,410 — 31,410 — 
Loans and leases3,726,093 3,642,987 — — 3,642,987 
Federal Reserve Bank and Federal Home Loan Bank stocks28,812 28,812 — 28,812 — 
Accrued interest receivable19,115 19,115 19,115 — — 
Financial liabilities
Deposits5,829,886 5,829,791 5,818,128 11,663 — 
Other short- and long-term borrowings91,386 92,216 — 92,216 — 
Accrued interest payable571 571 571 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at March 31, 2022.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
 At September 30, 2021
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$314,019 $314,019 $314,019 $— $— 
Debt securities available for sale1,864,899 1,864,899 — 1,864,899 — 
Debt securities held to maturity56,669 56,391 — 56,391 — 
Common equities and mutual funds(1)
12,668 12,668 12,668 — — 
Non-marketable equity securities(1)(2)
17,509 17,509 — 12,949 — 
Loans held for sale56,194 56,194 — 56,194 — 
Loans and leases3,607,815 3,616,646 — — 3,616,646 
Federal Reserve Bank and Federal Home Loan Bank stocks28,400 28,400 — 28,400 — 
Accrued interest receivable16,254 16,254 16,254 — — 
Financial liabilities
Deposits5,514,971 5,515,035 5,482,471 32,564 — 
Other short- and long-term borrowings92,834 93,938 — 93,938 — 
Accrued interest payable579 579 579 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at September 30, 2021.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.