FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2014

Assets measured at fair value on recurring basis

The following table summarizes the fair values of securities available for sale and held to maturity at March 31, 2014 and September 30, 2013. Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.

	Fair Value at March 31, 2014
	Available For Sale								Held To Maturity
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Debt securities
Trust preferred and corporate securities	$	52,445	$	-	$	52,445	$	-	$	-	$	-	$	-	$	-
Agency and instrumentality securities		-		-		-		-		9,697		-		9,697		-
Small Business Administration securities		53,431		-		53,431		-		-		-		-		-
Obligations of states and political subdivisions		-		-		-		-		17,785		-		17,785		-
Non-bank qualified obligations of states and political subdivisions		310,741		-		310,741		-		180,508		-		180,508		-
Common equities and mutual funds		814		-		814		-		-		-		-		-
Mortgage-backed securities		616,172		-		616,172		-		70,184		-		70,184		-
Securities available for sale	$	1,033,603	$	-	$	1,033,603	$	-	$	278,174	$	-	$	278,174	$	-

	Fair Value at September 30, 2013
	Available For Sale								Held To Maturity
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3
Debt securities
Trust preferred and corporate securities	$	48,784	$	-	$	48,784	$	-	$	-	$	-	$	-	$	-
Agency securities		-		-		-		-		9,613		-		9,613		-
Small Business Administration securities		10,581		-		10,581		-		-		-		-		-
Obligations of states and political subdivisions		1,727		-		1,727		-		18,342		-		18,342		-
Non-bank qualified obligations of states and political subdivisions		238,729		-		238,729		-		169,462		-		169,462		-
Mortgage-backed securities		581,372		-		581,372		-		73,101		-		73,101		-
Securities available for sale	$	881,193	$	-	$	881,193	$	-	$	270,518	$	-	$	270,518	$	-

Assets measured at fair value on nonrecurring basis

The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2014 and September 30, 2013.

	Fair Value at March 31, 2014
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
One to four family residential mortgage loans	$	256	$	-	$	-	$	256
Commercial and multi-family real estate loans		929		-		-		929
Total Impaired Loans		1,185		-		-		1,185
Foreclosed Assets, net		116		-		-		116
Total	$	1,301	$	-	$	-	$	1,301

	Fair Value at September 30, 2013
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans, net
One to four family residential mortgage loans	$	257	$	-	$	-	$	257
Commercial and multi-family real estate loans		1,810		-		-		1,810
Total Impaired Loans		2,067		-		-		2,067
Foreclosed Assets, net		116		-		-		116
Total	$	2,183	$	-	$	-	$	2,183

Asset quantitative information

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at March 31, 2014		Valuation Technique	Unobservable Input

Impaired Loans, net	$	1,185	Market approach	Appraised values ⁽¹⁾
Foreclosed Assets, net		116	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%.

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at September 30, 2013		Valuation Technique	Unobservable Input

Impaired Loans, net	$	2,067	Market approach	Appraised values ⁽¹⁾
Foreclosed Assets, net		116	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 table discloses the Company’s estimated fair value amounts of its financial instruments. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of March 31, 2014 and September 30, 2013, as more fully described below. The operations of the Company are managed from a going concern basis and not a liquidation basis. As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations. Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value. Neither of these components have been given consideration in the presentation of fair values below.

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at March 31, 2014 and September 30, 2013.

	March 31, 2014
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	38,931	$	38,931	$	38,931	$	-	$	-

Securities available for sale		1,033,603		1,033,603		-		1,033,603		-
Securities held to maturity		290,311		278,174		-		278,174		-
Total securities		1,323,914		1,311,777		-		1,311,777		-

Loans receivable:
One to four family residential mortgage loans		99,727		89,286		-		-		89,286
Commercial and multi-family real estate loans		211,335		219,303		-		-		219,303
Agricultural real estate loans		35,206		35,961		-		-		35,961
Consumer loans		27,112		27,197		-		-		27,197
Commercial operating loans		22,030		20,212		-		-		20,212
Agricultural operating loans		35,770		38,642		-		-		38,642
Total loans receivable		431,180		430,601		-		-		430,601

Federal Home Loan Bank stock		10,645		10,645		-		10,645		-
Accrued interest receivable		9,608		9,608		9,608		-		-

Financial liabilities
Noninterest bearing demand deposits		1,309,753		1,309,753		1,309,753		-		-
Interest bearing demand deposits, savings, and money markets		112,410		112,410		112,410		-		-
Certificates of deposit		72,997		73,361		-		73,361		-
Total deposits		1,495,160		1,495,524		1,422,163		73,361		-

Advances from Federal Home Loan Bank		7,000		8,938		-		8,938		-
Federal funds purchased		205,000		205,000				205,000
Securities sold under agreements to repurchase		5,526		5,526		-		5,526		-
Subordinated debentures		10,310		10,289		-		10,289		-
Accrued interest payable		167		167		167		-		-

	September 30, 2013
	Carrying		Estimated
	Amount		Fair Value		Level 1		Level 2		Level 3
	(Dollars in Thousands)
Financial assets
Cash and cash equivalents	$	40,063	$	40,063	$	40,063	$	-	$	-

Securities available for sale		881,193		881,193		-		881,193		-
Securities held to maturity		288,026		270,518		-		270,518		-
Total securities		1,169,219		1,151,711		-		1,151,711		-

Loans receivable:
One to four family residential mortgage loans		82,287		72,628		-		-		72,628
Commercial and multi-family real estate loans		192,786		200,778		-		-		200,778
Agricultural real estate loans		29,552		30,920		-		-		30,920
Consumer loans		30,314		30,588		-		-		30,588
Commercial operating loans		16,264		15,718		-		-		15,718
Agricultural operating loans		33,750		35,175		-		-		35,175
Total loans receivable		384,953		385,807		-		-		385,807

Federal Home Loan Bank stock		9,994		9,994		-		9,994		-
Accrued interest receivable		8,582		8,582		8,582		-		-

Financial liabilities
Noninterest bearing demand deposits		1,086,258		1,086,258		1,086,258		-		-
Interest bearing demand deposits, savings, and money markets		97,426		97,426		97,426		-		-
Certificates of deposit		131,599		132,187		-		132,187		-
Total deposits		1,315,283		1,315,871		1,183,684		132,187		-

Advances from Federal Home Loan Bank		7,000		9,089		-		9,089		-
Federal funds purchased		190,000		190,000				190,000
Securities sold under agreements to repurchase		9,146		9,146		-		9,146		-
Subordinated debentures		10,310		10,312		-		10,312		-
Accrued interest payable		291		291		291		-		-

- 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 1: http://www.xbrl.org/2003/role/presentationRef

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-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 2: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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Reference 3: http://www.xbrl.org/2003/role/presentationRef

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Reference 7: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

-Number 107

-Paragraph 10

-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 8: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

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Reference 9: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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

-Publisher FASB

-Name Accounting Standards Codification

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-Publisher FASB

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

Reference 12: http://www.xbrl.org/2003/role/presentationRef

-Publisher FASB

-Name Statement of Financial Accounting Standard (FAS)

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-LegacyDoc This reference is SUPERSEDED by the Accounting Standards Codification effective for interim and annual periods ending after September 15, 2009. This reference is included to help users transition from the previous accounting hierarchy and will be removed from future versions of this taxonomy.

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