SECURITIES (Tables)
|
12 Months Ended |
Sep. 30, 2023 |
|---|
| Investments, Debt and Equity Securities [Abstract] |
|
| Securities Available for Sale |
The amortized cost, gross unrealized gains and losses and estimated fair values of AFS and HTM debt securities are presented below. | | | | | | | | | | | | | | | | (Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair
Value | | Debt Securities AFS | | | | | | At September 30, 2023 | | | | | | Corporate securities | $ | 25,000 | | $ | — | | $ | (6,750) | | $ | 18,250 | | | SBA securities | 95,549 | | — | | (10,307) | | 85,242 | | | Obligations of states and political subdivisions | 2,368 | | — | | (79) | | 2,289 | | | Non-bank qualified obligations of states and political subdivisions | 269,396 | | — | | (42,673) | | 226,723 | | | Asset-backed securities | 255,384 | | 234 | | (9,419) | | 246,199 | | | Mortgage-backed securities | 1,495,636 | | — | | (270,111) | | 1,225,525 | | | Total debt securities AFS | $ | 2,143,333 | | $ | 234 | | $ | (339,339) | | $ | 1,804,228 | | | At September 30, 2022 | | | | | | Corporate securities | $ | 25,000 | | $ | — | | $ | (2,813) | | $ | 22,187 | | | SBA securities | 105,238 | | — | | (7,470) | | 97,768 | | | Obligations of states and political subdivisions | 2,469 | | — | | (125) | | 2,344 | | | Non-bank qualified obligations of states and political subdivisions | 290,754 | | — | | (26,971) | | 263,783 | | | Asset-backed securities | 160,806 | | — | | (13,016) | | 147,790 | | | Mortgage-backed securities | 1,581,452 | | — | | (232,455) | | 1,348,997 | | | Total debt securities AFS | $ | 2,165,719 | | $ | — | | $ | (282,850) | | $ | 1,882,869 | | | | | | | | Debt Securities HTM | | | | | | At September 30, 2023 | | | | | | Non-bank qualified obligations of states and political subdivisions | $ | 34,415 | | $ | — | | $ | (4,844) | | $ | 29,571 | | | Mortgage-backed securities | 2,176 | | — | | (322) | | 1,854 | | | Total debt securities HTM | $ | 36,591 | | $ | — | | $ | (5,166) | | $ | 31,425 | | | At September 30, 2022 | | | | | | Non-bank qualified obligations of states and political subdivisions | $ | 39,093 | | $ | — | | $ | (3,190) | | $ | 35,903 | | | Mortgage-backed securities | 2,589 | | — | | (321) | | 2,268 | | | Total debt securities HTM | $ | 41,682 | | $ | — | | $ | (3,511) | | $ | 38,171 | |
|
| Securities Held to Maturity |
The amortized cost, gross unrealized gains and losses and estimated fair values of AFS and HTM debt securities are presented below. | | | | | | | | | | | | | | | | (Dollars in thousands) | Amortized Cost | Gross Unrealized Gains | Gross Unrealized (Losses) | Fair
Value | | Debt Securities AFS | | | | | | At September 30, 2023 | | | | | | Corporate securities | $ | 25,000 | | $ | — | | $ | (6,750) | | $ | 18,250 | | | SBA securities | 95,549 | | — | | (10,307) | | 85,242 | | | Obligations of states and political subdivisions | 2,368 | | — | | (79) | | 2,289 | | | Non-bank qualified obligations of states and political subdivisions | 269,396 | | — | | (42,673) | | 226,723 | | | Asset-backed securities | 255,384 | | 234 | | (9,419) | | 246,199 | | | Mortgage-backed securities | 1,495,636 | | — | | (270,111) | | 1,225,525 | | | Total debt securities AFS | $ | 2,143,333 | | $ | 234 | | $ | (339,339) | | $ | 1,804,228 | | | At September 30, 2022 | | | | | | Corporate securities | $ | 25,000 | | $ | — | | $ | (2,813) | | $ | 22,187 | | | SBA securities | 105,238 | | — | | (7,470) | | 97,768 | | | Obligations of states and political subdivisions | 2,469 | | — | | (125) | | 2,344 | | | Non-bank qualified obligations of states and political subdivisions | 290,754 | | — | | (26,971) | | 263,783 | | | Asset-backed securities | 160,806 | | — | | (13,016) | | 147,790 | | | Mortgage-backed securities | 1,581,452 | | — | | (232,455) | | 1,348,997 | | | Total debt securities AFS | $ | 2,165,719 | | $ | — | | $ | (282,850) | | $ | 1,882,869 | | | | | | | | Debt Securities HTM | | | | | | At September 30, 2023 | | | | | | Non-bank qualified obligations of states and political subdivisions | $ | 34,415 | | $ | — | | $ | (4,844) | | $ | 29,571 | | | Mortgage-backed securities | 2,176 | | — | | (322) | | 1,854 | | | Total debt securities HTM | $ | 36,591 | | $ | — | | $ | (5,166) | | $ | 31,425 | | | At September 30, 2022 | | | | | | Non-bank qualified obligations of states and political subdivisions | $ | 39,093 | | $ | — | | $ | (3,190) | | $ | 35,903 | | | Mortgage-backed securities | 2,589 | | — | | (321) | | 2,268 | | | Total debt securities HTM | $ | 41,682 | | $ | — | | $ | (3,511) | | $ | 38,171 | |
|
| Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position |
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 MONTHS | | OVER 12 MONTHS | | TOTAL | | (Dollars in thousands) | Fair
Value | Gross Unrealized (Losses) | | Fair
Value | Gross Unrealized (Losses) | | Fair
Value | Gross Unrealized (Losses) | | Debt Securities AFS | | | | | | | | | | At September 30, 2023 | | | | | | | | | | Corporate securities | $ | — | | $ | — | | | $ | 18,250 | | $ | (6,750) | | | $ | 18,250 | | $ | (6,750) | | | SBA securities | 22,327 | | (1,919) | | | 62,915 | | (8,388) | | | 85,242 | | (10,307) | | | Obligations of state and political subdivisions | — | | — | | | 2,289 | | (79) | | | 2,289 | | (79) | | | Non-bank qualified obligations of states and political subdivisions | 5,010 | | (83) | | | 221,714 | | (42,590) | | | 226,723 | | (42,673) | | | Asset-backed securities | 46,528 | | (224) | | | 115,608 | | (9,195) | | | 162,136 | | (9,419) | | | Mortgage-backed securities | 18,311 | | (944) | | | 1,207,214 | | (269,167) | | | 1,225,525 | | (270,111) | | | Total debt securities AFS | $ | 92,176 | | $ | (3,170) | | | $ | 1,627,990 | | $ | (336,169) | | | $ | 1,720,165 | | $ | (339,339) | | | At September 30, 2022 | | | | | | | | | | Corporate securities | $ | — | | $ | — | | | $ | 22,187 | | $ | (2,813) | | | $ | 22,187 | | $ | (2,813) | | | SBA securities | 97,767 | | (7,470) | | | — | | — | | | 97,767 | | (7,470) | | | Obligations of state and political subdivisions | 2,345 | | (125) | | | — | | — | | | 2,345 | | (125) | | | Non-bank qualified obligations of states and political subdivisions | 195,816 | | (19,743) | | | 67,967 | | (7,228) | | | 263,783 | | (26,971) | | | Asset-backed securities | 64,886 | | (1,838) | | | 82,904 | | (11,178) | | | 147,790 | | (13,016) | | | Mortgage-backed securities | 816,657 | | (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 September 30, 2023 | | | | | | | | | | Non-bank qualified obligations of states and political subdivisions | $ | — | | $ | — | | | $ | 29,571 | | $ | (4,844) | | | $ | 29,571 | | $ | (4,844) | | | Mortgage-backed securities | — | | — | | | 1,854 | | (322) | | | 1,854 | | (322) | | | Total debt securities HTM | $ | — | | $ | — | | | $ | 31,425 | | $ | (5,166) | | | $ | 31,425 | | $ | (5,166) | | | 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 securities | 2,268 | | (321) | | | — | | — | | | 2,268 | | (321) | | | Total debt securities HTM | $ | 6,252 | | $ | (621) | | | $ | 31,919 | | $ | (2,890) | | | $ | 38,171 | | $ | (3,511) | |
|
| Amortized Cost and Fair Value of Debt Securities by Contractual Maturity |
The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which 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 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 September 30, | | (Dollars in thousands) | 2023 | | 2022 | | Securities AFS at Fair Value | Amortized Cost | Fair
Value | | Amortized Cost | Fair
Value | | Due in one year or less | $ | 5,023 | | $ | 4,971 | | | $ | 718 | | $ | 715 | | | Due after one year through five years | 11,175 | | 10,292 | | | 9,921 | | 9,395 | | | Due after five years through ten years | 79,139 | | 66,428 | | | 89,921 | | 81,819 | | | Due after ten years | 552,360 | | 497,012 | | | 483,707 | | 441,943 | | | 647,697 | | 578,703 | | | 584,267 | | 533,872 | | | Mortgage-backed securities | 1,495,636 | | 1,225,525 | | | 1,581,452 | | 1,348,997 | | | Total securities AFS, at fair value | $ | 2,143,333 | | $ | 1,804,228 | | | $ | 2,165,719 | | $ | 1,882,869 | | | | | | | | | Securities HTM at Fair Value | | | | | | | | | | | | | | | | | | | | | | | | | Due after ten years | $ | 34,415 | | $ | 29,571 | | | $ | 39,093 | | $ | 35,903 | | | 34,415 | | 29,571 | | | 39,093 | | 35,903 | | | Mortgage-backed securities | 2,176 | | 1,854 | | | 2,589 | | 2,268 | | | Total securities HTM, at cost | $ | 36,591 | | $ | 31,425 | | | $ | 41,682 | | $ | 38,171 | |
|
| Summary of Activities Related to Sale of Securities Available for Sale |
Activity related to the sale of securities is summarized below. | | | | | | | | | | | | | | | | | | | Fiscal Year Ended September 30, | | (Dollars in thousands) | 2023 | | 2022 | | 2021 | | Securities AFS | | | | | | | Proceeds from sales | $ | — | | | $ | 265,951 | | | $ | 50,468 | | | Gross gains on sales | — | | | 1,742 | | | 179 | | | Gross losses on sales | — | | | 1,588 | | | 173 | | | Net gain (loss) on securities AFS | $ | — | | | $ | 154 | | | $ | 6 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
|