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Fair Value (Tables)

6 Months Ended

Mar. 31, 2020

Fair Value Of Assets And Liabilities Measured On Recurring Basis

Assets and liabilities carried at fair value on a recurring basis in the Consolidated Statements of Condition at March 31, 2020 and September 30, 2019 are summarized below. There were no liabilities carried at fair value on a recurring basis at either date.



			Recurring Fair Value Measurements at Reporting Date Using
	March 31, 2020		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	March 31, 2020		(Level 1)		(Level 2)		(Level 3)
Assets
Investment securities available for sale:
REMICs	$	538,903	$	—	$	538,903	$	—
Fannie Mae certificates	6,581		—		6,581		—
Derivatives:
Interest rate lock commitments	592		—		—		592
Total	$	546,076	$	—	$	545,484	$	592



			Recurring Fair Value Measurements at Reporting Date Using
	September 30, 2019		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	September 30, 2019		(Level 1)		(Level 2)		(Level 3)
Assets
Investment securities available for sale:
REMICs	$	541,042	$	—	$	541,042	$	—
Fannie Mae certificates	6,822		—		6,822		—
Derivatives:
Interest rate lock commitments	44		—		—		44
Total	$	547,908	$	—	$	547,864	$	44

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The table below presents a reconciliation of the beginning and ending balances and the location within the Consolidated Statements of Income where gains (losses) due to changes in fair value are recognized on interest rate lock commitments which are measured at fair value on a recurring basis using significant unobservable inputs (Level 3).



	Three Months Ended March 31,				Six Months Ended March 31,
	2020		2019		2020		2019
Beginning balance	$	54	$	77	$	44	$	(2	)
Gain (loss) during the period due to changes in fair value:
Included in other non-interest income	538		64		548		143
Ending balance	$	592	$	141	$	592	$	141
Change in unrealized gains for the period included in earnings for assets held at end of the reporting date	$	592	$	141	$	592	$	141

Assets Measured At Fair Value On A Nonrecurring Basis

Summarized in the tables below are those assets measured at fair value on a nonrecurring basis.



			Nonrecurring Fair Value Measurements at Reporting Date Using
	March 31, 2020		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	March 31, 2020		(Level 1)		(Level 2)		(Level 3)
Impaired loans, net of allowance	$	61,489	$	—	$	—	$	61,489
Real estate owned⁽¹⁾	2,275		—		—		2,275
Total	$	63,764	$	—	$	—	$	63,764


⁽¹⁾	Amounts represent fair value measurements of properties before deducting estimated costs to dispose.



			Nonrecurring Fair Value Measurements at Reporting Date Using
	September 30, 2019		Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs
	September 30, 2019		(Level 1)		(Level 2)		(Level 3)
Impaired loans, net of allowance	$	71,492	$	—	$	—	$	71,492
Real estate owned⁽¹⁾	987		—		—		987
Total	$	72,479	$	—	$	—	$	72,479


⁽¹⁾	Amounts represent fair value measurements of properties before deducting estimated costs to dispose.

Fair Value Inputs, Assets, Quantitative Information

The following provides quantitative information about significant unobservable inputs categorized within Level 3 of the Fair Value Hierarchy. The interest rate lock commitments include both mortgage origination applications and preapprovals. Preapprovals have a much lower closure rate than origination applications as reflected in the weighted average closure rate.



	Fair Value
	March 31, 2020	Valuation Technique(s)	Unobservable Input	Range			Weighted Average
Impaired loans, net of allowance	$61,489	Market comparables of collateral discounted to estimated net proceeds	Discount appraised value to estimated net proceeds based on historical experience:
Impaired loans, net of allowance	$61,489		• Residential Properties	0	-	30%	6.3%

Interest rate lock commitments	$592	Quoted Secondary Market pricing	Closure rate	0	-	100%	66.1%



	Fair Value
	September 30, 2019	Valuation Technique(s)	Unobservable Input	Range			Weighted Average
Impaired loans, net of allowance	$71,492	Market comparables of collateral discounted to estimated net proceeds	Discount appraised value to estimated net proceeds based on historical experience:
Impaired loans, net of allowance	$71,492		• Residential Properties	0	-	30%	6.1%

Interest rate lock commitments	$44	Quoted Secondary Market pricing	Closure rate	0	-	100%	65.6%

Estimated Fair Value Of Financial Instruments

The following tables present the estimated fair value of the Company’s financial instruments and their carrying amounts as reported in the Consolidated Statements of Condition.



	March 31, 2020
	Carrying		Fair		Level 1		Level 2		Level 3
	Amount		Value		Level 1		Level 2		Level 3
Assets:
Cash and due from banks	$	27,803	$	27,803	$	27,803	$	—	$	—
Interest earning cash equivalents	284,678		284,678		284,678		—		—
Investment securities available for sale	545,484		545,484		—		545,484		—
Mortgage loans held for sale	2,337		2,434		—		2,434		—
Loans, net:
Mortgage loans held for investment	13,571,754		13,814,208		—		—		13,814,208
Other loans	2,700		2,717		—		—		2,717
Federal Home Loan Bank stock	135,858		135,858		N/A		—		—
Accrued interest receivable	38,915		38,915		—		38,915		—
Cash collateral received from or held by counterparty	51,508		51,508		51,508		—		—
Derivatives	592		592		—		—		592
Liabilities:
Checking and passbook accounts	$	2,404,838	$	2,404,838	$	—	$	2,404,838	$	—
Certificates of deposit	6,682,973		6,772,469		—		6,772,469		—
Borrowed funds	4,082,951		4,119,300		—		4,119,300		—
Borrowers’ advances for insurance and taxes	93,225		93,225		—		93,225		—
Principal, interest and escrow owed on loans serviced	28,722		28,722		—		28,722		—



	September 30, 2019
	Carrying		Fair		Level 1		Level 2		Level 3
	Amount		Value		Level 1		Level 2		Level 3
Assets:
Cash and due from banks	$	31,728	$	31,728	$	31,728	$	—	$	—
Interest earning cash equivalents	243,415		243,415		243,415		—		—
Investment securities available for sale	547,864		547,864		—		547,864		—
Mortgage loans held for sale	3,666		3,706		—		3,706		—
Loans, net:
Mortgage loans held for investment	13,192,579		13,716,398		—		—		13,716,398
Other loans	3,166		3,328		—		—		3,328
Federal Home Loan Bank stock	101,858		101,858		N/A		—		—
Accrued interest receivable	40,822		40,822		—		40,822		—
Cash collateral received from or held by counterparty	44,261		44,261		44,261		—		—
Derivatives	44		44		—		—		44
Liabilities:
Checking and passbook accounts	$	2,346,847	$	2,346,847	$	—	$	2,346,847	$	—
Certificates of deposit	6,419,537		6,541,791		—		6,541,791		—
Borrowed funds	3,902,981		3,903,032		—		3,903,032		—
Borrowers’ advances for insurance and taxes	103,328		103,328		—		103,328		—
Principal, interest and escrow owed on loans serviced	32,909		32,909		—		32,909		—