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Fair Value (Tables)

9 Months Ended

Jun. 30, 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 June 30, 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
	June 30, 2020		Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
					(Level 1)			(Level 2)			(Level 3)
Assets
Investment securities available for sale:

REMICs	$	507,940	$	—		$	507,940		$	—
Fannie Mae certificates	6,390		—			6,390			—

Mortgage loans held for sale	45,231		—			45,231			—
Derivatives:
Interest rate lock commitments	681		—			—			681
Forward commitments for the sale of mortgage loans	$	13	$	—		$	13		$	—

Total	$	560,255	$	—		$	559,574		$	681


			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
					(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 June 30,						Nine Months Ended June 30,
	2020		2019		2020		2019
Beginning balance	$	592	$	141	$	44	$	(2)
Gain (loss) during the period due to changes in fair value:
Included in other non-interest income	89		70		637		213
Ending balance	$	681	$	211	$	681	$	211
Change in unrealized gains for the period included in earnings for assets held at end of the reporting date	$	681	$	211	$	681	$	211

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
	June 30, 2020		Quoted Prices in Active Markets for Identical Assets			Significant Other Observable Inputs			Significant Unobservable Inputs
					(Level 1)			(Level 2)			(Level 3)
Impaired loans, net of allowance	$	61,616	$	—		$	—		$	61,616

Real estate owned⁽¹⁾	734		—			—			734
Total	$	62,350	$	—		$	—		$	62,350

⁽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
					(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
	June 30, 2020	Valuation Technique(s)	Unobservable Input	Range					Weighted Average
Impaired loans, net of allowance	$61,616	Market comparables of collateral discounted to estimated net proceeds	Discount appraised value to estimated net proceeds based on historical experience:
						• Residential Properties	0	-	34%	6.3%

Interest rate lock commitments	$681	Quoted Secondary Market pricing	Closure rate	0	-	100%	67.1%


	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:
						• 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.


	June 30, 2020
	Carrying		Fair		Level 1		Level 2		Level 3
	Amount		Value
Assets:
Cash and due from banks	$	32,777	$	32,777	$	32,777	$	—	$	—
Interest earning cash equivalents	296,502		296,502		296,502		—		—
Investment securities available for sale	514,330		514,330		—		514,330		—
Mortgage loans held for sale	51,139		51,446		—		51,446		—
Loans, net:
Mortgage loans held for investment	13,372,718		13,552,780		—		—		13,552,780
Other loans	2,720		2,736		—		—		2,736
Federal Home Loan Bank stock	136,793		136,793		N/A		—		—
Accrued interest receivable	37,680		37,680		—		37,680		—

Cash collateral received from or held by counterparty	49,478		49,478		49,478		—		—
Derivatives:
Interest rate lock commitments	681		681		—		—		681
Forward commitments for the sale of mortgage loans	13		13		—		13		—
Liabilities:
Checking and passbook accounts	$	2,549,265	$	2,549,265	$	—	$	2,549,265	$	—
Certificates of deposit	6,680,846		6,818,399		—		6,818,399		—
Borrowed funds	3,759,148		3,817,335		—		3,817,335		—
Borrowers’ advances for insurance and taxes	91,104		91,104		—		91,104		—
Principal, interest and escrow owed on loans serviced	43,193		43,193		—		43,193		—


	September 30, 2019
	Carrying		Fair		Level 1		Level 2		Level 3
	Amount		Value
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		—