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Employee Benefit Plans
 12 Months Ended
Sep. 30, 2016
Compensation and Retirement Disclosure [Abstract]  
Employee Benefit Plans
Employee Benefit Plans
Profit Sharing Plan
The Company participates in a multiple employer 401(k) profit sharing plan (the Plan). All employees are eligible to participate, beginning with the first day of the month coincident with or immediately following the completion of one year of service and having reached the age of 21. In addition to employee contributions, the Company may contribute discretionary amounts for eligible participants. Contribution rates for participating employers must be equal. The Company contributed $4.7 million, $4.0 million and $3.6 million to the Plan for the years ended September 30, 2016, 2015 and 2014, respectively.
Defined Benefit Plan
The Company acquired a noncontributory (cash balance) defined benefit pension plan from HF Financial which covers employees of HF Financial and its wholly-owned subsidiaries. Effective July 1, 2015, the plan was frozen which eliminates future contributions for qualified individuals. The plan has not been terminated, so the plan continues to exist with related benefit obligations and plan assets for those vested within the plan.
The following table sets forth the pension plan funded status, using the valuation date of September 30, 2016:
 
September 30,
 
2016
 
2015
 
(dollars in thousands)
Changes in benefit obligations:
 
 
 
Benefit obligations, beginning of year
$
—

 
$
—

Acquired in HF Financial acquisition
8,642

 
—

Service cost
21

 
—

Interest cost
176

 
—

Benefits paid
(2,677
)
 
—

Plan changes
—

 
—

Assumption changes
265

 
—

Actuarial loss
(72
)
 
—

Benefit obligations, end of year
$
6,355

 
$
—

 
 
 
 
Changes in plan assets:
 
 
 
Fair value of plan assets, beginning of year
$
—

 
$
—

Acquired in HF Financial acquisition
5,642

 
—

Actual return on plan assets
226

 
—

Company contributions
168

 
—

Benefits paid
(2,677
)
 
—

Fair value of plan assets, end of year
$
3,359

 
$
—

Funded status(1)
$
(2,996
)
 
$
—

 
 
 
 
(1) Amounts included in other liabilities in the consolidated balance sheets.

Information relative to the components of net periodic benefit cost measured at/or for the fiscal years ended September 30, 2016, 2015 and 2014 for the defined benefit plan is presented below:
 
September 30,
 
2016
 
2015
 
2014
 
(dollars in thousands)
Net periodic benefit cost
 
 
 
 
 
Service cost
$
21

 
$
—

 
$
—

Interest cost
176

 
—

 
—

Expected return on plan assets
(190
)
 
—

 
—

Amortization of prior losses
50

 
—

 
—

Net periodic benefit cost
$
57

 
$
—

 
$
—


The weighted-average assumptions used to determine benefit obligations are as follows as of September 30,:
 
2016
 
2015
Discount rate - pre-retirement
3.57
%
 
—
%
Discount rate - post-retirement
3.57
%
 
—
%
Rate of compensation increase(1)
N/A

 
N/A

 
 
 
 
(1) Effective July 1, 2015, the plan was frozen whereby the rate of compensation increases, which relate to future additional contributions to the plan, are not applicable in the future.
The weighted-average assumptions used to determine net periodic benefit costs are as follows as of September 30,:
 
2016
 
2015
 
2014
Discount rate - pre-retirement
3.57
%
 
—
%
 
—
%
Discount rate - post-retirement
3.57
%
 
—
%
 
—
%
Rate of compensation increase
4.00
%
 
—
%
 
—
%
Expected long-term return on plan assets
8.00
%
 
—
%
 
—
%

The assumed expected long-term rate of return on pension assets used in the calculation for 2016 pension plan expense was 8.00%. Determination of the plan's expected long-term rate of return is based on the current asset allocation of the plan, as well as the historical and expected returns on each asset class. The expected long-term rate of return reflects forward-looking economic forecasts.
The investment policy of the pension plan is designed for growth in principal, within limits designated to safeguard against significant losses within the portfolio. The target allocation percentage ranges established, which may change from time to time, by investment category are detailed in the table below. Management believes there are no significant concentrations of risk with in the plan asset portfolio as of September 30, 2016.
 
Fair Value
 
Actual Asset Mix as a % of Market Value
 
Target Asset Mix as a % of Market Value
 
 
(dollars in thousands)
 
Equities
$
2,200

 
65.50
%
 
55.00
%
(1) 
Fixed
1,130

 
33.63
%
 
30.00
%
(2) 
Other
—

 
—
%
 
10.00
%
(3) 
Cash and cash equivalents
29

 
0.87
%
 
5.00
%
(2) 
     Total pension plan assets
$
3,359

 
100.00
%
 
100.00
%
 
 
 
 
 
 
 
 
(1) Includes a plus/minus range of 10.0%
(2) Includes a plus/minus range of 5.0%
(3) Maximum allocation of 10.0%
The following table shows the fair values of the Company's pension plan assets by asset category at September 30, 2016. Information about the valuation techniques and inputs used to measure fair value is provided in Note 25 Fair Value Measurements.
 
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(dollars in thousands)
Cash and cash equivalents
$
29

 
$
29

 
$
—

 
$
—

Equity securities:
 
 
 
 
 
 
 
  Domestic fund
1,499

 
1,499

 
—

 
—

  International fund
551

 
551

 
—

 
—

  Emerging markets fund
150

 
150

 
—

 
—

Fixed income securities:
 
 
 
 
 
 
 
  International fixed income fund
310

 
310

 
—

 
—

  Taxable fixed income fund
820

 
820

 
—

 
—

     Total pension plan assets
$
3,359

 
$
3,359

 
$
—

 
$
—


The Company does not anticipate funding any contributions for fiscal year 2017.
The following estimated future benefit payments are expected to be paid during the fiscal years ended September 30:
 
(dollars in thousands)
2017
$
323

2018
434

2019
506

2020
304

2021
701

2022 though 2026
1,996

Total
$
4,264