FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Dec. 31, 2018

Summary of Fair Values of Securities Available for Sale and Held to Maturity

The following table summarizes the fair values of debt securities available for sale and equity securities at December 31, 2018 and September 30, 2018, as they are measured at fair value on a recurring basis.



	Fair Value At December 31, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	94,056	$	—	$	94,056	$	—
Obligations of states and political subdivisions	14,950		—		14,950		—
Non-bank qualified obligations of states and political subdivisions	944,571		—		944,571		—
Asset-backed securities	287,293		—		287,293		—
Mortgage-backed securities	354,186		—		354,186		—
Total debt securities AFS	1,695,056		—		1,695,056		—
Common equities and mutual funds⁽¹⁾⁽²⁾	$	3,837	$	3,837	$	—	$	—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at December 31, 2018 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at December 31, 2018.



	Fair Value At September 30, 2018
	Available For Sale
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	44,337	$	—	$	44,337	$	—
Obligations of states and political subdivisions	16,910		—		16,910		—
Non-bank qualified obligations of states and political subdivisions	1,109,885		—		1,109,885		—
Asset-backed securities	313,028		—		313,028		—
Mortgage-backed securities	364,065		—		364,065		—
Total debt securities AFS	1,848,225		—		1,848,225		—
Common equities and mutual funds⁽¹⁾	3,800		3,800		—		—
Total securities	$	1,852,025	$	3,800	$	1,848,225	$	—

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of December 31, 2018 and September 30, 2018.



	Fair Value At December 31, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	761	$	—	$	—	$	761
Factoring	724		—		—		724
Commercial finance	1,485		—		—		1,485
Total National Lending	1,485		—		—		1,485
Total Impaired Loans and Leases	1,485		—		—		1,485
Foreclosed Assets, net	31,548		—		—		31,548
Total	$	33,033	$	—	$	—	$	33,033



	Fair Value At September 30, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired loans and leases, net
Asset Based Lending	$	57	$	—	$	—	$	57
Factoring	1,899		—		—		1,899
Lease Financing	2,869		—		—		2,869
Commercial finance	4,825		—		—		4,825
Total National Lending	4,825		—		—		4,825
Total impaired loans and leases	4,825		—		—		4,825
Foreclosed assets, net	31,638		—		—		31,638
Total	$	36,463	$	—	$	—	$	36,463

Quantitative Information about Level 3 Fair Value Measurements

Quantitative Information About Level 3 Fair Value Measurements

(Dollars in Thousands)

Fair Value at
December 31, 2018

Fair Value at
September 30, 2018

Valuation
Technique

Unobservable Input

Range of Inputs

Impaired loans and leases, net

1,485

4,825

Market approach

Appraised values (1)

4.00 - 10.00%

Foreclosed Assets, net

31,548

31,638

Market approach

Appraised values (1)

4.00 - 10.00%


⁽¹⁾	The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs in a range of 4% to 10%.

Carrying Amount and Estimated Fair Value of Financial Instruments

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at December 31, 2018 and September 30, 2018.



	December 31, 2018
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	164,169	$	164,169	$	164,169	$	—	$	—

Debt securities available for sale	1,695,056		1,695,056		—		1,695,056		—
Debt securities held to maturity	160,736		151,590		—		151,590		—
Equity securities ⁽¹⁾	3,837		3,837		3,837		—		—
Total securities	1,859,629		1,850,483		3,837		1,846,646		—

Loans held for sale	33,560		33,560		—		33,560		—

Loans and leases:
Asset based lending	554,072		541,707		—		—		541,707
Factoring	284,912		281,731		—		—		281,731
Lease financing	290,889		291,205		—		—		291,205
Insurance premium finance	330,712		329,753		—		—		329,753
SBA/USDA	67,893		67,891		—		—		67,891
Other commercial finance	89,402		89,859		—		—		89,859
Commercial finance	1,617,880		1,602,146		—		—		1,602,146
Consumer credit products	96,144		95,310		—		—		95,310
Other consumer finance	182,510		178,616		—		—		178,616
Consumer finance	278,654		273,926		—		—		273,926
Tax services	76,575		76,568		—		—		76,568
Warehouse finance	176,134		173,488		—		—		173,488
Total National Lending	2,149,243		2,126,128		—		—		2,126,128
Commercial real estate and operating	863,753		849,384		—		—		849,384
Consumer one to four family real estate and other	256,341		252,230		—		—		252,230
Agricultural real estate and operating	58,971		56,906		—		—		56,906
Total Community Banking	1,179,065		1,158,520		—		—		1,158,520
Total loans and leases	3,328,308		3,284,648		—		—		3,284,648

Federal Home Loan Bank stock	15,600		15,600		—		15,600		—
Accrued interest receivable	22,076		22,076		22,076		—		—

Financial liabilities
Noninterest-bearing demand deposits	2,739,757		2,739,757		2,739,757		—		—
Interest-bearing demand deposits, savings, and money markets	235,450		235,450		235,450		—		—
Certificates of deposits	170,629		169,397		—		169,397		—
Wholesale non-maturing deposits	146,227		146,227		146,227		—		—
Wholesale certificates of deposits	1,644,384		1,640,910		—		1,640,910		—
Total deposits	4,936,447		4,931,741		3,121,434		1,810,307		—

Advances from Federal Home Loan Bank	—		—		—		—		—
Federal funds purchased	227,000		227,000		227,000		—		—
Securities sold under agreements to repurchase	4,226		4,226		—		4,226		—
Capital leases	1,860		1,860		—		1,860		—
Trust preferred securities	13,662		13,867		—		13,867		—
Subordinated debentures	73,528		75,000		—		75,000		—
Accrued interest payable	11,280		11,280		11,280		—		—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at December 31, 2018 and September 30, 2018.



	September 30, 2018
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	99,977	$	99,977	$	99,977	$	—	$	—

Securities available for sale	1,852,025		1,852,025		3,800		1,848,225		—
Securities held to maturity	172,154		160,974		—		160,974		—
Total securities	2,024,179		2,012,999		3,800		2,009,199		—

Loans held for sale	15,606		15,606		—		15,606		—

Loans and leases:
Asset based lending	477,917		477,471		—		—		477,471
Factoring	284,221		283,424		—		—		283,424
Lease financing	265,315		264,679		—		—		264,679
Insurance premium finance	337,877		337,212		—		—		337,212
SBA/USDA	59,374		61,072		—		—		61,072
Other commercial finance	85,145		83,111		—		—		83,111
Commercial finance	1,509,849		1,506,969		—		—		1,506,969
Consumer credit products	80,605		80,633		—		—		80,633
Other consumer finance	189,756		197,320		—		—		197,320
Consumer finance	270,361		277,953		—		—		277,953
Tax services	1,073		1,073		—		—		1,073
Warehouse finance	65,000		64,978		—		—		64,978
Total National Lending	1,846,283		1,850,973		—		—		1,850,973
Commercial real estate and operating	790,890		773,203		—		—		773,203
Consumer one to four family real estate and other	247,318		244,730		—		—		244,730
Agricultural real estate and operating	60,498		58,849		—		—		58,849
Total Community Banking	1,098,706		1,076,782		—		—		1,076,782
Total loans and leases	2,944,989		2,927,755		—		—		2,927,755

Federal Home Loan Bank stock	23,400		23,400		—		23,400		—
Accrued interest receivable	22,016		22,016		22,016		—		—

Financial liabilities
Noninterest-bearing demand deposits	2,405,274		2,405,274		2,405,274		—		—
Interest-bearing demand deposits, savings, and money markets	218,347		218,347		218,347		—		—
Certificates of deposits	276,180		273,800		—		273,800		—
Wholesale non-maturing deposits	94,384		94,384		94,384		—		—
Wholesale certificates of deposits	1,436,802		1,432,146		—		1,432,146		—
Total deposits	4,430,987		4,423,951		2,718,005		1,705,946		—

Advances from Federal Home Loan Bank	—		—		—		—		—
Federal funds purchased	422,000		422,000		422,000		—		—
Securities sold under agreements to repurchase	3,694		3,694		—		3,694		—
Capital leases	1,876		1,876		—		1,876		—
Trust preferred securities	13,661		13,866		—		13,866		—
Subordinated debentures	73,491		75,563		—		75,563		—
Accrued interest payable	7,794		7,794		7,794		—		—