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SECURITIES
9 Months Ended
Jun. 30, 2021
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities are presented below.
Securities Available For Sale
(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
At June 30, 2021
Debt securities AFS    
SBA securities$162,922 $6,263 $— $169,185 
Obligations of states and political subdivisions2,758 — 2,766 
Non-bank qualified obligations of states and political subdivisions267,031 7,423 (104)274,350 
Asset-backed securities405,857 2,760 (895)407,722 
Mortgage-backed securities1,059,321 9,866 (5,605)1,063,582 
Total debt securities AFS$1,897,889 $26,320 $(6,604)$1,917,605 
At September 30, 2020
Debt securities AFS    
SBA securities$159,722 $5,391 $(158)$164,955 
Obligations of states and political subdivisions825 16 — 841 
Non-bank qualified obligations of states and political subdivisions314,819 8,978 (23)323,774 
Asset-backed securities329,139 2,015 (6,229)324,925 
Mortgage-backed securities439,879 14,567 (839)453,607 
Total debt securities AFS$1,244,384 $30,967 $(7,249)$1,268,102 

Securities Held To Maturity
(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
At June 30, 2021
Debt securities HTM    
Non-bank qualified obligations of states and political subdivisions$60,228 $1,104 $(2)$61,330 
Mortgage-backed securities4,019 72 — 4,091 
Total debt securities HTM$64,247 $1,176 $(2)$65,421 
At September 30, 2020
Debt securities HTM    
Non-bank qualified obligations of states and political subdivisions$87,183 $1,040 $(29)$88,194 
Mortgage-backed securities5,427 124 — 5,551 
Total debt securities HTM$92,610 $1,164 $(29)$93,745 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)
At June 30, 2021
Debt securities AFS
Non-bank qualified obligations of states and political subdivisions24,357 (104)— — 24,357 (104)
Asset-backed securities124,158 (234)94,726 (661)218,884 (895)
Mortgage-backed securities695,230 (4,207)55,415 (1,398)750,645 (5,605)
Total debt securities AFS$843,745 $(4,545)$150,141 $(2,059)$993,886 $(6,604)

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)
At September 30, 2020
Debt securities AFS
SBA securities$32,257 $(102)$9,875 $(56)$42,132 $(158)
Non-bank qualified obligations of states and political subdivisions6,265 (6)3,103 (17)9,368 (23)
Asset-backed securities106,474 (1,089)178,686 (5,140)285,160 (6,229)
Mortgage-backed securities138,338 (839)— — 138,338 (839)
Total debt securities AFS$283,334 $(2,036)$191,664 $(5,213)$474,998 $(7,249)

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)
At June 30, 2021
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions2,859 (2)— — 2,859 (2)
Total debt securities HTM$2,859 $(2)$— $— $2,859 $(2)

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)Fair
Value
Gross Unrealized (Losses)
At September 30, 2020
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$7,397 $(9)$3,637 $(20)$11,034 $(29)
Total debt securities HTM$7,397 $(9)$3,637 $(20)$11,034 $(29)
The adoption of CECL was inconsequential to debt securities AFS. At June 30, 2021, there were no ACL for debt securities AFS. At June 30, 2021, there were 49 securities AFS in an unrealized loss position. Management assessed each investment security with unrealized losses for credit impairment and determined substantially all unrealized losses on these securities were due to credit spreads and interest rates versus credit impairment. As part of that assessment, management evaluated and concluded that it is more-likely-than-not that the Company will not be required and does not intend to sell any of the securities prior to recovery of the amortized cost.

The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features that allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities ("MBS") because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
At June 30, 2021At September 30, 2020
(Dollars in Thousands)Amortized CostFair
Value
Amortized CostFair
Value
Securities AFS at Fair Value
Due in one year or less$245 $245 $1,385 $1,398 
Due after one year through five years17,884 18,467 20,805 21,769 
Due after five years through ten years53,273 55,337 32,441 34,025 
Due after ten years767,166 779,974 749,874 757,303 
838,568 854,023 804,505 814,495 
Mortgage-backed securities1,059,321 1,063,582 439,879 453,607 
Total securities AFS, at fair value$1,897,889 $1,917,605 $1,244,384 $1,268,102 

At June 30, 2021At September 30, 2020
(Dollars in Thousands)Amortized CostFair
Value
Amortized CostFair
Value
Securities HTM at Fair Value
Due after ten years$60,228 $61,330 $87,183 $88,194 
60,228 61,330 87,183 88,194 
Mortgage-backed securities4,019 4,091 5,427 5,551 
Total securities HTM, at cost$64,247 $65,421 $92,610 $93,745 

Other investments, at cost, include equity securities without a readily determinable fair value, which are included in other assets on the Condensed Consolidated Statements of Financial Condition, and shares of stock in the Federal Reserve Bank (the "FRB") of Minneapolis and the FHLB of Des Moines.

Equity Securities
Equity securities without a readily determinable fair value totaled $14.7 million at June 30, 2021 and $11.0 million at September 30, 2020.

FRB Stock
The Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System. FRB of Minneapolis stock held by the Bank totaled $19.7 million at June 30, 2021 and September 30, 2020. These equity securities are 'restricted' in that they can only be owned by member banks.

FHLB Stock
The Company's borrowings from the FHLB are secured by a blanket collateral agreement with respect to a percentage of unencumbered loans and the pledge of specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities.
The investments in the FHLB stock are required investments related to the Company's membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLB and actions of their regulator, the Federal Housing Finance Agency.

The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $8.8 million and $7.5 million at June 30, 2021 and September 30, 2020, respectively.

These equity securities are ‘restricted’ in that they can only be sold back to the respective institution from which they were acquired or another member institution at par. Therefore, FRB and FHLB stocks are less liquid than other marketable equity securities, and the fair value approximates cost. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value.

Equity Security Impairment
For investments held at cost, impairment is evaluated on at least an annual basis on the recoverability of the par value. All other equity investments, including those under the equity method, are reviewed for other-than-temporary impairment on at least a quarterly basis. The Company recognized $2.0 million in impairment recognized for such investments for the nine months ended June 30, 2021.