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SECURITIES
 6 Months Ended
Mar. 31, 2023
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.
(Dollars in thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair
Value
Debt Securities AFS
At March 31, 2023
Corporate securities$25,000 $— $(6,250)$18,750 
SBA securities99,670 — (5,422)94,248 
Obligations of states and political subdivisions2,436 — (79)2,357 
Non-bank qualified obligations of states and political subdivisions277,767 37 (28,311)249,493 
Asset-backed securities136,028 — (9,324)126,704 
Mortgage-backed securities1,534,356 — (200,345)1,334,011 
Total debt securities AFS$2,075,257 $37 $(249,731)$1,825,563 
At September 30, 2022
Corporate securities$25,000 $— $(2,813)$22,187 
SBA securities105,238 — (7,470)97,768 
Obligations of states and political subdivisions2,469 — (125)2,344 
Non-bank qualified obligations of states and political subdivisions290,754 — (26,971)263,783 
Asset-backed securities160,806 — (13,016)147,790 
Mortgage-backed securities1,581,452 — (232,455)1,348,997 
Total debt securities AFS$2,165,719 $— $(282,850)$1,882,869 
Debt Securities HTM
At March 31, 2023
Non-bank qualified obligations of states and political subdivisions$36,407 $— $(3,474)$32,933 
Mortgage-backed securities2,306 — (211)2,095 
Total debt securities HTM$38,713 $— $(3,685)$35,028 
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$39,093 $— $(3,190)$35,903 
Mortgage-backed securities2,589 — (321)2,268 
Total debt securities HTM$41,682 $— $(3,511)$38,171 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous loss position, were as follows:
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in thousands)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)Fair
Value		Gross Unrealized (Losses)
Debt Securities AFS
At March 31, 2023
Corporate securities$— $— $18,750 $(6,250)$18,750 $(6,250)
SBA securities41,231 (1,166)53,016 (4,256)94,247 (5,422)
Obligations of state and political subdivisions— — 2,357 (79)2,357 (79)
Non-bank qualified obligations of states and political subdivisions65,300 (4,118)183,201 (24,193)248,501 (28,311)
Asset-backed securities— — 126,704 (9,324)126,704 (9,324)
Mortgage-backed securities296,523 (14,199)1,037,488 (186,146)1,334,011 (200,345)
Total debt securities AFS$403,054 $(19,483)$1,421,516 $(230,248)$1,824,570 $(249,731)
At September 30, 2022
Corporate securities$— $— $22,187 $(2,813)$22,187 $(2,813)
SBA securities97,767 (7,470)— — 97,767 (7,470)
Obligations of state and political subdivisions2,345 (125)— — 2,345 (125)
Non-bank qualified obligations of states and political subdivisions195,816 (19,743)67,967 (7,228)263,783 (26,971)
Asset-backed securities64,886 (1,838)82,904 (11,178)147,790 (13,016)
Mortgage-backed securities816,657 (106,583)532,340 (125,872)1,348,997 (232,455)
Total debt securities AFS$1,177,471 $(135,759)$705,398 $(147,091)$1,882,869 $(282,850)
Debt Securities HTM
At March 31, 2023
Non-bank qualified obligations of states and political subdivisions$— $— $32,934 $(3,474)$32,934 $(3,474)
Mortgage-backed securities— — 2,096 (211)2,096 (211)
Total debt securities HTM$— $— $35,030 $(3,685)$35,030 $(3,685)
At September 30, 2022
Non-bank qualified obligations of states and political subdivisions$3,984 $(300)$31,919 $(2,890)$35,903 $(3,190)
Mortgage-backed securities2,268 (321)— — 2,268 (321)
Total debt securities HTM$6,252 $(621)$31,919 $(2890)$38,171 $(3,511)

At March 31, 2023, there were 192 securities AFS in an unrealized loss position. All of the mortgage-backed securities ("MBS") in an unrealized loss position at March 31, 2023 were government guaranteed. Management assessed each investment security with unrealized losses for credit loss and determined substantially all unrealized losses on these securities were due to credit spreads and interest rates versus credit loss. 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. At March 31, 2023, there was no allowance for credit losses ("ACL") for debt securities AFS.
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 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 Small Business Administration ("SBA") securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
(Dollars in thousands)At March 31, 2023At September 30, 2022
Securities AFS at Fair ValueAmortized CostFair
Value		Amortized CostFair
Value
Due in one year or less$3,785 $3,728 $718 $715 
Due after one year through five years5,830 5,468 9,921 9,395 
Due after five years through ten years86,540 76,745 89,921 81,819 
Due after ten years444,746 405,611 483,707 441,943 
540,901 491,552 584,267 533,872 
Mortgage-backed securities1,534,356 1,334,011 1,581,452 1,348,997 
Total securities AFS, at fair value$2,075,257 $1,825,563 $2,165,719 $1,882,869 
Securities HTM at Fair Value
Due after ten years$36,407 $32,933 $39,093 $35,903 
36,407 32,933 39,093 35,903 
Mortgage-backed securities2,306 2,095 2,589 2,268 
Total securities HTM, at cost$38,713 $35,028 $41,682 $38,171 

Equity Securities
The Company held $3.5 million at March 31, 2023 and $2.9 million at September 30, 2022 in marketable equity securities. The Company recognized none and $3.8 million in unrealized losses on marketable equity securities during the six months ended March 31, 2023 and 2022, respectively, which is attributable to an investee becoming publicly traded during fiscal year 2021. All other marketable equity securities and related activity were insignificant for the six months ended March 31, 2023 and 2022. No such securities were sold during the six months ended March 31, 2023.

Non-marketable equity securities with a readily determinable fair value totaled $7.7 million at March 31, 2023 and $7.2 million at September 30, 2022. The Company recognized $0.1 million in unrealized losses and $0.3 million in unrealized gains during the six months ended March 31, 2023 and 2022, respectively. No such securities were sold during the six months ended March 31, 2023.

Non-marketable equity securities without readily determinable fair value totaled $17.7 million at March 31, 2023 and $18.2 million at September 30, 2022. No such securities were sold during the six months ended March 31, 2023.

Federal Reserve Bank ("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 March 31, 2023 and September 30, 2022. These equity securities are 'restricted' in that they can only be owned by member banks.
Federal Home Loan Bank ("FHLB") Stock
The Company's borrowings from the FHLB are secured by 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 $9.7 million and $9.1 million at March 31, 2023 and at September 30, 2022, 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.

Equity Security Impairment
The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate 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 $0.5 million and no impairment for such investments for the six months ended March 31, 2023 and 2022, respectively.