FAIR VALUE MEASUREMENTS (Tables)

3 Months Ended

Dec. 31, 2012

Assets measured at fair value on recurring basis

The following table summarizes the assets of the Company for which fair values are determined on a recurring basis at December 31, 2012 and September 30, 2012.

	Fair Value at December 31, 2012
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities
Trust preferred and corporate securities	$	69,283	$	-	$	69,283	$	-
Agency securities		39,240		-		39,240		-
Small Business Administration securities		20,487		-		20,487		-
Obligations of states and political subdivisions		19,472		-		19,472		-
Non-bank qualified obligations of states and political subdivisions		416,555		-		416,555		-
Mortgage-backed securities		758,955		-		758,955		-
Securities available for sale	$	1,323,992	$	-	$	1,323,992	$	-

	Fair Value at September 30, 2012
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities
Trust preferred and corporate securities	$	65,497	$	-	$	65,497	$	-
Asset backed securities		41,324		-		41,324		-
Agency securities		39,467		-		39,467		-
Small Business Administration securities		19,914		-		19,914		-
Obligations of states and political subdivisions		13,153		-		13,153		-
Non-bank qualified obligations of states and political subdivisions		255,895		-		255,895		-
Mortgage-backed securities		681,442		-		681,442		-
Securities available for sale	$	1,116,692	$	-	$	1,116,692	$	-

Assets measured at fair value on nonrecurring basis

The following table summarizes the assets of the Company for which fair values are determined on a non-recurring basis at December 31, 2012 and September 30, 2012.

	Fair Value at December 31, 2012
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
One to four family residential mortgage loans	$	96	$	-	$	-	$	96
Commercial and multi-family real estate loans		4,406		-		-		4,406
Total Impaired Loans		4,502		-		-		4,502
Foreclosed Assets, net		9		-		-		9
Total	$	4,511	$	-	$	-	$	4,511

	Fair Value at September 30, 2012
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
One to four family residential mortgage loans	$	336	$	-	$	-	$	336
Commercial and multi-family real estate loans		8,469		-		-		8,469
Consumer loans		1		-		-		1
Commercial operating loans		16		-		-		16
Total Impaired Loans		8,822		-		-		8,822
Foreclosed Assets, net		838		-		-		838
Total	$	9,660	$	-	$	-	$	9,660

Asset quantitative information

Quantitative Information About Level 3 Fair Value Measurements

(Dollars in Thousands)

Fair Value at December 31, 2012

Valuation Technique

Unobservable Input

Impaired Loans, net

$4,502

Market approach

Appraised values (1)

Foreclosed Assets, net

Market approach

Appraised values (1)

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

Carrying 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, 2012 and September 30, 2012. The information presented is subject to change over time based on a variety of factors.

	December 31, 2012
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	32,745	$	32,745	$	32,745	$	-	$	-
Securities available for sale		1,323,992		1,323,992		-		1,323,992		-
Loans receivable:
One to four family residential mortgage loans		55,964		53,914		-		-		53,914
Commercial and multi-family real estate loans		176,884		172,097		-		-		172,097
Agricultural real estate loans		23,446		23,888		-		-		23,888
Consumer loans		30,736		31,359		-		-		31,359
Commercial operating loans		13,569		14,496		-		-		14,496
Agricultural operating loans		20,926		22,487		-		-		22,487
Total loans receivable		321,525		318,241		-		-		318,241

FHLB stock		11,375		11,375		-		11,375		-
Accrued interest receivable		8,800		8,800		8,800		-		-

Financial liabilities
Noninterest bearing demand deposits		1,132,218		1,132,218		1,132,218		-		-
Interest bearing demand deposits, savings, and money markets		99,057		99,057		99,057		-		-
Certificates of deposit		84,983		85,818		-		85,818		-
Total deposits		1,316,258		1,317,093		1,231,275		85,818		-

Advances from FHLB		11,000		13,655		-		13,655		-
Federal funds purchased		208,000		208,000		-		208,000		-
Securities sold under agreements to repurchase		12,303		12,303		-		12,303		-
Subordinated debentures		10,310		10,316		-		10,316		-
Accrued interest payable		218		218		218		-		-

Off-balance-sheet instruments, loan commitments		-		-		-		-		-

	September 30, 2012
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	145,051	$	145,051	$	145,051	$	-	$	-
Securities available for sale		1,116,692		1,116,692		-		1,116,692		-
Loans receivable:
One to four family residential mortgage loans		49,134		49,936		-		-		49,936
Commercial and multi-family real estate loans		191,905		194,781		-		-		194,781
Agricultural real estate loans		19,861		21,033		-		-		21,033
Consumer loans		32,838		33,488		-		-		33,488
Commercial operating loans		16,452		15,396		-		-		15,396
Agricultural operating loans		20,981		22,714		-		-		22,714
Total loans receivable		331,171		337,348		-		-		337,348

FHLB stock		2,120		2,120		-		2,120		-
Accrued interest receivable		6,710		6,710		6,710		-		-

Financial liabilities
Noninterest bearing demand deposits		1,181,299		1,181,299		1,181,299		-		-
Interest bearing demand deposits, savings, and money markets		97,732		97,732		97,732		-		-
Certificates of deposit		100,763		101,701		-		101,701		-
Total deposits		1,379,794		1,380,732		1,279,031		101,701		-

Advances from FHLB		11,000		13,999		-		13,999		-
Securities sold under agreements to repurchase		26,400		26,400		-		26,400		-
Subordinated debentures		10,310		10,318		-		10,318		-
Accrued interest payable		177		177		177		-		-

Off-balance-sheet instruments, loan commitments		-		-		-		-		-

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

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- Definition

Tabular disclosure of assets, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, by class that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3).

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- Definition

Tabular disclosure of the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments, assets, and liabilities. Such certain disclosures about the financial instruments, assets, and liabilities include: (1) the fair value of the required items together with their carrying amounts (as appropriate) and (2) the methodology and assumptions used in developing such estimates of fair value.

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Reference 10: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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