XML 34 R23.htm IDEA: XBRL DOCUMENT
v3.22.4

FAIR VALUE OF FINANCIAL INSTRUMENTS | 3 Months Ended
--- | ---
Dec. 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.
| At December 31, 2022
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3
Debt securities AFS |  |  |  |
Corporate securities | $ | 21,312 |  | $ | — |  | $ | 21,312 |  | $ | — |
SBA securities | 95,765 |  | — |  | 95,765 |  | — |
Obligations of states and political subdivisions | 2,351 |  | — |  | 2,351 |  | — |
Non-bank qualified obligations of states and political subdivisions | 258,052 |  | — |  | 258,052 |  | — |
Asset-backed securities | 135,276 |  | — |  | 135,276 |  | — |
Mortgage-backed securities | 1,335,022 |  | — |  | 1,335,022 |  | — |
Total debt securities AFS | $ | 1,847,778 |  | $ | — |  | $ | 1,847,778 |  | $ | — |
Common equities and mutual funds(1) | $ | 3,437 |  | $ | 3,437 |  | $ | — |  | $ | — |
Non-marketable equity securities(2) | $ | 7,822 |  | $ | — |  | $ | — |  | $ | — |
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 31, 2022. (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.
| At September 30, 2022
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3
Debt securities AFS |  |  |  |
Corporate securities | $ | 22,187 |  | $ | — |  | $ | 22,187 |  | $ | — |
SBA securities | 97,768 |  | — |  | 97,768 |  | — |
Obligations of states and political subdivisions | 2,344 |  | — |  | 2,344 |  | — |
Non-bank qualified obligations of states and political subdivisions | 263,783 |  | — |  | 263,783 |  | — |
Asset-backed securities | 147,790 |  | — |  | 147,790 |  | — |
Mortgage-backed securities | 1,348,997 |  | — |  | 1,348,997 |  | — |
Total debt securities AFS | $ | 1,882,869 |  | $ | — |  | $ | 1,882,869 |  | $ | — |
Common equities and mutual funds(1) | $ | 2,874 |  | $ | 2,874 |  | $ | — |  | $ | — |
Non-marketable equity securities(2) | $ | 7,212 |  | $ | — |  | $ | — |  | $ | — |
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 2022. (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. 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 the internal estimates and/or assessment 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:
| At December 31, 2022
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3
Loans and leases, net individually evaluated for credit loss |  |  |  |
Commercial finance | $ | 8,544 |  | $ | — |  | $ | — |  | $ | 8,544 |
Total loans and leases, net individually evaluated for credit loss | 8,544 |  | — |  | — |  | 8,544 |
Foreclosed assets, net | — |  | — |  | — |  | — |
Total | $ | 8,544 |  | $ | — |  | $ | — |  | $ | 8,544 |
| At September 30, 2022
(Dollars in thousands) | Total | Level 1 | Level 2 | Level 3
Loans and leases, net individually evaluated for credit loss |  |  |  |
Commercial finance | $ | 1,575 |  | $ | — |  | $ | — |  | $ | 1,575 |
Total loans and leases, net individually evaluated for credit loss | 1,575 |  | — |  | — |  | 1,575 |
Foreclosed assets, net | 1 |  | — |  | — |  | 1 |
Total | $ | 1,576 |  | $ | — |  | $ | — |  | $ | 1,576 |
| Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands) | Fair Value at December 31, 2022 | Fair Value at September 30, 2022 | Valuation Technique | Unobservable Input | Range of Inputs
Loans and leases, net individually evaluated for credit loss | $ | 8,544 |  | $ | 1,575 |  | Market approach | Appraised values(1) | 15% - 59%
(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 15% to 59%. 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 December 31, 2022 and September 30, 2022 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 December 31, 2022
(Dollars in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3
Financial assets |  |  |  |  |
Cash and cash equivalents | $ | 369,169 |  | $ | 369,169 |  | $ | 369,169 |  | $ | — |  | $ | — |
Debt securities available for sale | 1,847,778 |  | 1,847,778 |  | — |  | 1,847,778 |  | — |
Debt securities held to maturity | 40,565 |  | 37,658 |  | — |  | 37,658 |  | — |
Common equities and mutual funds(1) | 3,437 |  | 3,437 |  | 3,437 |  | — |  | — |
Non-marketable equity securities(1)(2) | 23,136 |  | 23,136 |  | — |  | 15,314 |  | — |
Loans held for sale | 17,148 |  | 17,148 |  | — |  | 17,148 |  | — |
Loans and leases | 3,504,066 |  | 3,484,705 |  | — |  | — |  | 3,484,705 |
Federal Reserve Bank and Federal Home Loan Bank stocks | 28,812 |  | 28,812 |  | — |  | 28,812 |  | — |
Accrued interest receivable | 20,170 |  | 20,170 |  | 20,170 |  | — |  | — |
Financial liabilities |  |  |  |  |
Deposits | 5,789,132 |  | 5,788,923 |  | 5,782,075 |  | 6,848 |  | — |
Other short- and long-term borrowings | 34,977 |  | 34,935 |  | — |  | 34,935 |  | — |
Accrued interest payable | 717 |  | 717 |  | 717 |  | — |  | — |
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at December 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, 2022
(Dollars in thousands) | Carrying Amount | Estimated Fair Value | Level 1 | Level 2 | Level 3
Financial assets |  |  |  |  |
Cash and cash equivalents | $ | 388,038 |  | $ | 388,038 |  | $ | 388,038 |  | $ | — |  | $ | — |
Debt securities available for sale | 1,882,869 |  | 1,882,869 |  | — |  | 1,882,869 |  | — |
Debt securities held to maturity | 41,682 |  | 38,171 |  | — |  | 38,171 |  | — |
Common equities and mutual funds(1) | 2,874 |  | 2,874 |  | 2,874 |  | — |  | — |
Non-marketable equity securities(1)(2) | 22,526 |  | 22,526 |  | — |  | 15,314 |  | — |
Loans held for sale | 21,071 |  | 21,071 |  | — |  | 21,071 |  | — |
Loans and leases | 3,529,280 |  | 3,525,803 |  | — |  | — |  | 3,525,803 |
Federal Reserve Bank and Federal Home Loan Bank stocks | 28,812 |  | 28,812 |  | — |  | 28,812 |  | — |
Accrued interest receivable | 17,979 |  | 17,979 |  | 17,979 |  | — |  | — |
Financial liabilities |  |  |  |  |
Deposits | 5,866,037 |  | 5,865,854 |  | 5,858,283 |  | 7,571 |  | — |
Other short- and long-term borrowings | 36,028 |  | 35,986 |  | — |  | 35,986 |  | — |
Accrued interest payable | 192 |  | 192 |  | 192 |  | — |  | — |
(1) Equity securities at fair value are included within other assets on the Consolidated Statements of Financial Condition at September 30, 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.

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -URI https://asc.fasb.org/extlink&oid=126976982&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueDisclosuresTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration