FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2019

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 March 31, 2019 and September 30, 2018, as they are measured at fair value on a recurring basis.



	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	164,103	$	—	$	164,103	$	—
Obligations of states and political subdivisions	11,529		—		11,529		—
Non-bank qualified obligations of states and political subdivisions	621,642		—		621,642		—
Asset-backed securities	284,389		—		284,389		—
Mortgage-backed securities	413,493		—		413,493		—
Total debt securities AFS	1,495,156		—		1,495,156		—
Common equities and mutual funds⁽¹⁾⁽²⁾	$	4,211	$	4,211	$	—	$	—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.



	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 March 31, 2019 and September 30, 2018.



	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	1,218	$	—	$	—	$	1,218
Factoring	13		—		—		13
Lease Financing	23		—		—		23
Commercial finance	1,254		—		—		1,254
Total National Lending	1,254		—		—		1,254
Total Impaired Loans and Leases	1,254		—		—		1,254
Foreclosed Assets, net	29,548		—		—		29,548
Total	$	30,802	$	—	$	—	$	30,802



	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
March 31, 2019

Fair Value at
September 30, 2018

Valuation
Technique

Unobservable Input

Range of Inputs

Impaired loans and leases, net

1,254

4,825

Market approach

Appraised values (1)

4.00 - 10.00%

Foreclosed Assets, net

29,548

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 March 31, 2019 and September 30, 2018.



	March 31, 2019
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	156,461	$	156,461	$	156,461	$	—	$	—

Debt securities available for sale	1,495,156		1,495,156		—		1,495,156		—
Debt securities held to maturity	154,598		149,164		—		149,164		—
Equity securities ⁽¹⁾	4,211		4,211		4,211		—		—
Total securities	1,653,965		1,648,531		4,211		1,644,320		—

Loans held for sale	59,745		59,745		—		59,745		—

Loans and leases:
Asset based lending	572,210		551,579		—		—		551,579
Factoring	287,955		283,337		—		—		283,337
Lease financing	321,414		320,411		—		—		320,411
Insurance premium finance	307,875		307,732		—		—		307,732
SBA/USDA	77,481		74,407		—		—		74,407
Other commercial finance	98,956		100,038		—		—		100,038
Commercial finance	1,665,891		1,637,504		—		—		1,637,504
Consumer credit products	139,617		138,748		—		—		138,748
Other consumer finance	170,824		166,925		—		—		166,925
Consumer finance	310,441		305,673		—		—		305,673
Tax services	84,824		60,722		—		—		60,722
Warehouse finance	186,697		186,764		—		—		186,764
Total National Lending	2,247,853		2,190,663		—		—		2,190,663
Commercial real estate and operating	869,917		861,524		—		—		861,524
Consumer one to four family real estate and other	257,079		254,642		—		—		254,642
Agricultural real estate and operating	60,167		58,454		—		—		58,454
Total Community Banking	1,187,163		1,174,620		—		—		1,174,620
Total loans and leases	3,435,016		3,365,283		—		—		3,365,283

Federal Home Loan Bank stock	7,436		7,436		—		7,436		—
Accrued interest receivable	20,281		20,281		20,281		—		—

Financial liabilities
Noninterest-bearing demand deposits	3,034,428		3,034,428		3,034,428		—		—
Interest-bearing demand deposits, savings, and money markets	300,033		300,033		300,033		—		—
Certificates of deposits	154,401		153,951		—		153,951		—
Wholesale non-maturing deposits	207,795		207,795		207,795		—		—
Wholesale certificates of deposits	1,273,650		1,272,291		—		1,272,291		—
Total deposits	4,970,307		4,968,498		3,542,256		1,426,242		—

Securities sold under agreements to repurchase	2,804		2,804		—		2,804		—
Capital leases	1,996		1,996		—		1,996		—
Trust preferred securities	13,661		13,878		—		13,878		—
Subordinated debentures	73,566		75,188		—		75,188		—
Other borrowings	19,357		19,162		—		19,162		—
Accrued interest payable	9,239		9,239		9,239		—		—

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 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		—

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		—		—