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FAIR VALUE OF FINANCIAL INSTRUMENTS
 9 Months Ended
Jun. 30, 2023
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 June 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$18,750 $— $18,750 $— 
SBA securities90,605 — 90,605 — 
Obligations of states and political subdivisions2,311 — 2,311 — 
Non-bank qualified obligations of states and political subdivisions238,375 — 238,375 — 
Asset-backed securities254,566 — 254,566 — 
Mortgage-backed securities1,309,664 — 1,309,664 — 
Total debt securities AFS$1,914,271 $— $1,914,271 $— 
Common equities and mutual funds(1)
$3,527 $3,527 $— $— 
Non-marketable equity securities(2)
$8,469 $— $— $— 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2023.
(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)TotalLevel 1Level 2Level 3
Debt securities AFS    
Corporate securities$22,187 $— $22,187 $— 
SBA securities97,768 — 97,768 — 
Obligations of states and political subdivisions2,344 — 2,344 — 
Non-bank qualified obligations of states and political subdivisions263,783 — 263,783 — 
Asset-backed securities147,790 — 147,790 — 
Mortgage-backed securities1,348,997 — 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 3% to 18%.
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 June 30, 2023
(Dollars in thousands)TotalLevel 1Level 2Level 3
Loans and leases, net individually evaluated for credit loss    
Commercial finance$4,113 $— $— $4,113 
    Total loans and leases, net individually evaluated for credit loss4,113 — — 4,113 
Total$4,113 $— $— $4,113 
 At September 30, 2022
(Dollars in thousands)TotalLevel 1Level 2Level 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 loss1,575 — — 1,575 
Foreclosed assets, net1 — — 1 
Total$1,576 $— $— $1,576 
 Quantitative Information About Level 3 Fair Value Measurements
(Dollars in thousands)
Fair Value at
June 30, 2023
Fair Value at
September 30, 2022
Valuation
Technique		Unobservable InputRange of Inputs
Loans and leases, net individually evaluated for credit loss$4,113 $1,575 Market approach
Appraised values(1)
3% - 18%
(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 3% to 18%.

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 June 30, 2023 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 June 30, 2023
(Dollars in thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$515,271 $515,271 $515,271 $— $— 
Debt securities available for sale1,914,271 1,914,271 — 1,914,271 — 
Debt securities held to maturity37,725 33,670 — 33,670 — 
Common equities and mutual funds(1)
3,527 3,527 3,527 — — 
Non-marketable equity securities(1)(2)
20,533 20,533 — 12,064 — 
Loans held for sale87,351 87,351 — 87,351 — 
Loans and leases4,068,511 4,006,176 — — 4,006,176 
Federal Reserve Bank and Federal Home Loan Bank stocks30,890 30,890 — 30,890 — 
Accrued interest receivable22,332 22,332 22,332 — — 
Financial liabilities
Deposits6,306,976 6,306,818 6,301,147 5,671 — 
Overnight federal funds purchased230,000 230,000 230,000 — — 
Other short- and long-term borrowings34,178 31,853 — 31,853 — 
Accrued interest payable802 802 802 — — 
(1) Equity securities at fair value are included within other assets on the Condensed Consolidated Statements of Financial Condition at June 30, 2023.
(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 1Level 2Level 3
Financial assets
Cash and cash equivalents$388,038 $388,038 $388,038 $— $— 
Debt securities available for sale1,882,869 1,882,869 — 1,882,869 — 
Debt securities held to maturity41,682 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 sale21,071 21,071 — 21,071 — 
Loans and leases3,529,280 3,525,803 — — 3,525,803 
Federal Reserve Bank and Federal Home Loan Bank stocks28,812 28,812 — 28,812 — 
Accrued interest receivable17,979 17,979 17,979 — — 
Financial liabilities
Deposits5,866,037 5,865,854 5,858,283 7,571 — 
Other short- and long-term borrowings36,028 35,986 — 35,986 — 
Accrued interest payable192 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.