10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C.  20549

FORM 10-Q

☒  QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2019

☐  TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d)

OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number:  0-22140

META FINANCIAL GROUP, INC.®

(Exact name of registrant as specified in its charter)

Delaware	42-1406262
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)

5501 South Broadband Lane, Sioux Falls, South Dakota 57108

(Address of principal executive offices and Zip Code)

(605) 782-1767

(Registrant’s telephone number, including area code)

Indicate by check mark whether the Registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the Registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.  YES ☒  NO☐

Indicate by check mark whether the Registrant has submitted electronically and posted on its corporate web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T during the preceding 12 months (or for such shorter period that the Registrant was required to submit and post such files).  YES ☒  NO ☐

Indicate by check mark whether the Registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, smaller reporting company or an emerging growth company See the definitions of "large accelerated filer." "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer☒	Accelerated filer☐	Non-accelerated filer☐	Smaller Reporting Company☐
Emerging growth company☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the Registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).   ☐ YES  ☒ NO

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, $.01 par value	CASH	The NASDAQ Stock Market LLC

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class:	Outstanding at May 2, 2019:
Common Stock, $.01 par value	39,449,882 shares
Nonvoting Common Stock, $.01 par value	0 Nonvoting shares

META FINANCIAL GROUP, INC.

FORM 10-Q

Table of Contents

PART I - FINANCIAL INFORMATION		2
Item 1.	Financial Statements (Unaudited)	2
	Condensed Consolidated Statements of Financial Condition as of March 31, 2019 and September 30, 2018	2
	Condensed Consolidated Statements of Operations for the Three and Six Months Ended March 31, 2019 and 2018	3
	Condensed Consolidated Statements of Comprehensive Income for the Three and Six Months Ended March 31, 2019 and 2018	4
	Condensed Consolidated Statements of Changes in Stockholders’ Equity for the Three and Six Months Ended March 31, 2019 and 2018	5
	Condensed Consolidated Statements of Cash Flows for the Six Months Ended March 31, 2019 and 2018	7
	Notes to Condensed Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	51
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	64
Item 4.	Controls and Procedures	67
PART II - OTHER INFORMATION		68
Item 1.	Legal Proceedings	68
Item 1A.	Risk Factors	68
Item 6.	Exhibits	69
SIGNATURES		70

i

PART I - FINANCIAL INFORMATION

Item 1.    Financial Statements.

META FINANCIAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Condition

(Dollars in Thousands, Except Share Data(1))	(Unaudited)
ASSETS	March 31, 2019			September 30, 2018
Cash and cash equivalents	$	156,461		$	99,977
Investment securities available for sale, at fair value	1,081,663			1,484,160
Mortgage-backed securities available for sale, at fair value	413,493			364,065
Investment securities held to maturity, at cost	146,992			163,893
Mortgage-backed securities held to maturity, at cost	7,606			7,850
Loans held for sale	59,745			15,606
Loans and leases	3,437,980			2,944,739
Allowance for loan and lease losses	(48,672		)	(13,040		)
Federal Home Loan Bank Stock, at cost	7,436			23,400
Accrued interest receivable	20,281			22,016
Premises, furniture, and equipment, net	45,457			40,458
Rental equipment, net	140,087			107,290
Bank-owned life insurance	88,565			87,293
Foreclosed real estate and repossessed assets	29,548			31,638
Goodwill	307,464			303,270
Intangible assets	60,506			70,719
Prepaid assets	26,597			27,906
Deferred taxes	19,079			18,737
Other assets	49,754			35,090
Total assets	$	6,050,042		$	5,835,067
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Noninterest-bearing checking	$	3,034,428		$	2,405,274
Interest-bearing checking	183,492			111,587
Savings deposits	59,978			54,765
Money market deposits	56,563			51,995
Time certificates of deposit	154,401			276,180
Wholesale deposits	1,481,445			1,531,186
Total deposits	4,970,307			4,430,987
Short-term debt	11,583			425,759
Long-term debt	99,800			88,963
Accrued interest payable	9,239			7,794
Accrued expenses and other liabilities	135,404			133,838
Total liabilities	5,226,333			5,087,341
STOCKHOLDERS’ EQUITY
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2019 and September 30, 2018, respectively	—			—
Common stock, $.01 par value; 90,000,000 and 90,000,000 shares authorized, 39,565,496 and 39,192,063 shares issued, 39,450,938 and 39,167,280 shares outstanding at March 31, 2019 and September 30, 2018, respectively	395			393
Common stock, Nonvoting, $.01 par value; 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2019 and September 30, 2018, respectively	—			—
Additional paid-in capital	576,406			565,811
Retained earnings	258,600			213,048
Accumulated other comprehensive loss	(10,264		)	(33,111		)
Treasury stock, at cost, 114,558 and 24,783 common shares at March 31, 2019 and September 30, 2018, respectively	(4,956		)	(1,989		)
Total equity attributable to parent	820,181			744,152
Noncontrolling interest	3,528			3,574
Total stockholders’ equity	823,709			747,726
Total liabilities and stockholders’ equity	$	6,050,042		$	5,835,067

See Notes to Condensed Consolidated Financial Statements.

⁽¹⁾All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

2

META FINANCIAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Operations (Unaudited)

(Dollars in Thousands, Except Share and Per Share Data(1))	Three Months Ended March 31,						Six Months Ended March 31,
	2019			2018			2019			2018
Interest and dividend income:
Loans and leases, including fees	$	73,670		$	17,844		$	134,168		$	34,287
Mortgage-backed securities	2,861			4,047			5,559			7,805
Other investments	11,763			11,480			23,543			22,136
	88,294			33,371			163,270			64,228
Interest expense:
Deposits	14,740			2,957			25,336			4,842
FHLB advances and other borrowings	2,204			3,009			6,312			5,785
	16,944			5,966			31,648			10,627
Net interest income	71,350			27,405			131,622			53,601
Provision for loan and lease losses	33,318			18,343			42,417			19,411
Net interest income after provision for loan and lease losses	38,032			9,062			89,205			34,190
Noninterest income:
Refund transfer product fees	31,601			33,803			31,862			33,995
Tax advance product fees	33,038			33,838			34,723			35,785
Card fees	23,052			26,856			42,403			52,103
Rental income	9,890			—			20,780			—
Loan and lease fees	925			1,042			2,173			2,334
Bank-owned life insurance	631			650			1,273			1,319
Deposit fees	2,093			982			4,031			1,830
Gain (loss) on sale of securities available-for-sale, net (Includes $231 and ($166) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended March 31, 2019 and 2018, respectively and $209 and ($1,176) for the six months ended March 31, 2019 and 2018, respectively)	231			(166		)	209			(1,176		)
Gain on sale of loans and leases	1,085			—			1,951			—
Loss on foreclosed real estate	(200		)	—			(185		)	(19		)
Other income	2,679			414			3,556			516
Total noninterest income	105,025			97,419			142,776			126,687
Noninterest expense:
Compensation and benefits	49,164			32,172			82,174			54,512
Refund transfer product expense	7,181			9,871			7,191			9,972
Tax advance product expense	2,225			1,474			2,677			1,754
Card processing	6,971			7,190			14,056			13,730
Occupancy and equipment	7,212			4,477			13,670			9,367
Operating lease equipment depreciation	4,485			—			12,251			—
Legal and consulting	4,308			3,239			8,277			5,655
Marketing	585			668			1,124			1,221
Data processing	321			243			758			657
Intangible amortization	5,596			2,731			9,978			4,412
Impairment expense	9,660			—			9,660			—
Other expense	12,546			6,432			22,733			11,259
Total noninterest expense	110,254			68,497			184,549			112,539
Income before income tax expense	32,803			37,984			47,432			48,338
Income tax (benefit) expense (Includes $58 and ($46) reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018, respectively and $52 and ($329) for the six months ended March 31, 2019 and 2018, respectively)	(395		)	6,548			(2,086		)	12,232
Net income before noncontrolling interest	33,198			31,436			49,518			36,106
Net income attributable to noncontrolling interest	1,078			—			2,000			—
Net income attributable to parent	$	32,120		$	31,436		$	47,518		$	36,106
Earnings per common share
Basic	$	0.81		$	1.08		$	1.21		$	1.24
Diluted	$	0.81		$	1.08		$	1.20		$	1.24

See Notes to Condensed Consolidated Financial Statements.

⁽¹⁾All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

3

META FINANCIAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income (Unaudited)

(Dollars in Thousands)	Three Months Ended March 31,						Six Months Ended March 31,
	2019			2018			2019			2018
Net income before noncontrolling interest	$	33,198		$	31,436		$	49,518		$	36,106
Other comprehensive (loss) income:
Change in net unrealized gain (loss) on debt securities	25,089			(35,993		)	31,260			(43,472		)
(Gain) loss realized in net income	(231		)	166			(209		)	1,176
	24,858			(35,827		)	31,051			(42,296		)
Unrealized gain (loss) on currency translation	116			—			(245		)	—
Deferred income tax effect	6,051			(8,879		)	7,484			(11,964		)
Total other comprehensive (loss) income	18,923			(26,948		)	23,322			(30,332		)
Total comprehensive income	52,121			4,488			72,840			5,774
Total comprehensive income attributable to noncontrolling interest	1,078			—			2,000			—
Comprehensive income attributable to parent	$	51,043		$	4,488		$	70,840		$	5,774

See Notes to Condensed Consolidated Financial Statements.

4

META FINANCIAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited)

(Dollars in Thousands, Except Share and Per Share Data⁽¹⁾)

	Meta Financial Group, Inc. Stockholders' Equity
Three Months Ended March 31, 2019	Common Stock			Additional Paid-in Capital		Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Stockholders’ Equity			Noncontrolling Interest			Total Equity
Balance, December 31, 2018	$	394		$	572,156	$	228,453		$	(29,186	)	$	(4,356	)	$	767,461		$	3,267		$	770,728
Cash dividends declared on common stock ($0.05 per share)	—			—		(1,973		)	—			—			(1,973		)	—			(1,973		)
Issuance of common shares due to restricted stock	1			—		—			—			—			1			—			1
Shares repurchased for tax withholdings on stock compensation	—			—		—			—			(600		)	(600		)	—			(600		)
Stock compensation	—			4,250		—			—			—			4,250			—			4,250
Total other comprehensive income	—			—		—			18,922			—			18,922			—			18,922
Net income	—			—		32,120			—			—			32,120			1,078			33,198
Net investment by (distribution to) noncontrolling interests	—			—		—			—			—			—			(817		)	(817		)
Balance, March 31, 2019	$	395		$	576,406	$	258,600		$	(10,264	)	$	(4,956	)	$	820,181		$	3,528		$	823,709
Six Months Ended March 31, 2019
Balance, September 30, 2018	$	393		$	565,811	$	213,048		$	(33,111	)	$	(1,989	)	$	744,152		$	3,574		$	747,726
Adoption of Accounting Standards Update 2014-09, net of income taxes	—			—		1,502			—			—			1,502			—			1,502
Adoption of Accounting Standards Update 2016-01	—			—		475			(475		)	—			—			—			—
Cash dividends declared on common stock ($0.10 per share)	—			—		(3,943		)	—			—			(3,943		)	—			(3,943		)
Issuance of common shares due to exercise of stock options	—			54		—			—			—			54			—			54
Issuance of common shares due to restricted stock	3			—		—			—			—			3			—			3
Issuance of common shares due to ESOP	—			2,010		—			—			—			2,010			—			2,010
Shares repurchased for tax withholdings on stock compensation	(1		)	1		—			—			(2,967		)	(2,967		)	—			(2,967		)
Stock compensation	—			8,530		—			—			—			8,530			—			8,530
Total other comprehensive income	—			—		—			23,322			—			23,322			—			23,322
Net income	—			—		47,518			—			—			47,518			2,000			49,518
Net investment by (distribution to) noncontrolling interests	—			—		—			—			—			—			(2,046		)	(2,046		)
Balance, March 31, 2019	$	395		$	576,406	$	258,600		$	(10,264	)	$	(4,956	)	$	820,181		$	3,528		$	823,709

5

	Meta Financial Group, Inc. Stockholders' Equity
Three Months Ended March 31, 2018	Common Stock		Additional Paid-in Capital			Retained Earnings			Accumulated Other Comprehensive Income (Loss)			Treasury Stock			Total Stockholders’ Equity			Noncontrolling Interest		Total Equity
Balance, December 31, 2017	$	290	$	262,678		$	170,578		$	5,782		$	(1,623	)	$	437,705		$	—	$	437,705
Cash dividends declared on common stock ($0.04 per share)	—		—			(1,261		)	—			—			(1,261		)	—		(1,261		)
Issuance of common shares due to exercise of stock options	—		147			—			—			—			147			—		147
Issuance of common shares due to restricted stock	1		—			—			—			—			1			—		1
Shares repurchased for tax withholdings on stock compensation	—		(412		)	—			—			(43		)	(455		)	—		(455		)
Stock compensation	—		3,078			—			—			—			3,078			—		3,078
Total other comprehensive (loss)	—		—			—			(26,948		)	—			(26,948		)	—		(26,948		)
Net income	—		—			31,436			—			—			31,436			—		31,436
Balance, March 31, 2018	$	291	$	265,491		$	200,753		$	(21,166	)	$	(1,666	)	$	443,703		$	—	$	443,703
Six Months Ended March 31, 2018
Balance, September 30, 2017	$	288	$	258,144		$	167,164		$	9,166		$	(266	)	$	434,496		$	—	$	434,496
Cash dividends declared on common stock ($0.08 per share)	—		—			(2,517		)	—			—			(2,517		)	—		(2,517		)
Issuance of common shares due to exercise of stock options	—		147			—			—			—			147			—		147
Issuance of common shares due to restricted stock	2		—			—			—			—			2			—		2
Issuance of common shares due to ESOP	1		1,605			—			—			—			1,606			—		1,606
Shares repurchased for tax withholdings on stock compensation	—		(726		)	—			—			(1,400		)	(2,126		)	—		(2,126		)
Stock compensation	—		6,321			—			—			—			6,321			—		6,321
Total other comprehensive (loss)	—		—			—			(30,332		)	—			(30,332		)	—		(30,332		)
Net income	—		—			36,106			—			—			36,106			—		36,106
Balance, March 31, 2018	$	291	$	265,491		$	200,753		$	(21,166	)	$	(1,666	)	$	443,703		$	—	$	443,703

See Notes to Condensed Consolidated Financial Statements.

⁽¹⁾All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

6

META FINANCIAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Unaudited)

	Six Months Ended March 31,
(Dollars in Thousands)	2019			2018
Cash flows from operating activities:
Net income	$	49,518		$	36,106
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	28,933			19,183
Stock compensation	8,530			6,321
Provision (recovery):
Loan and lease losses	42,417			19,411
Deferred taxes	(7,811		)	126
Loans held for sale:
Originations	(42,961		)	—
Purchases	(5,940		)	—
Proceeds from sales	36,461			—
Net change	8,760			—
Fair value adjustment of foreclosed real estate	—			23
Net realized (gain) loss:
Other assets	(46		)	(15		)
Foreclosed real estate or other assets	185			19
Available for sale securities, net	(209		)	1,176
Loans held for sale	(1,650		)	—
Leases receivable and rental equipment	(1,985		)	—
Net change:
Other assets	(16,226		)	(14,472		)
Accrued interest payable	1,445			(965		)
Accrued expenses and other liabilities	21,951			36,779
Accrued interest receivable	1,735			1,776
Change in bank-owned life insurance value	(1,272		)	(1,319		)
Impairment on rental equipment	6,194			—
Impairment of intangibles	111			—
Net cash provided by operating activities	128,140			104,149
Cash flows from investing activities:
Available for sale securities:
Purchases	(222,436		)	(323,995		)
Proceeds from sales	534,779			126,373
Proceeds from maturities and principal repayments	66,417			71,652
Held to maturity:
Proceeds from maturities and principal repayments	16,225			19,863
Loans and leases:
Purchases	(144,104		)	(88,986		)
Proceeds from sales	10,857			9,582
Net change	(399,380		)	(143,766		)
Proceeds from sales of foreclosed real estate or other assets	1,905			122
Federal Home Loan Bank stock:
Purchases	(358,516		)	(477,604		)
Redemption	374,480			520,880
Rental equipment:
Purchases	(58,968		)	—
Proceeds from sales	4,962			—
Net change	674			—
Premises and equipment:
Purchases	(8,815		)	(3,689		)
Proceeds from sales	101			—
Net cash (used in) investing activities	(181,819		)	(289,568		)
Cash flows from financing activities:
Net change:
Checking, savings, and money market deposits	712,896			464,084
Time deposits	(121,887		)	(51,925		)
Wholesale deposits	(49,777		)	(295,086		)
FHLB and other borrowings	—			(385,000		)
Federal funds	(422,000		)	(703,000		)
Securities sold under agreements to repurchase	(890		)	(758		)

7

Net investment by (distribution to) noncontrolling interests	(2,046		)	—
Proceeds from other liabilities	5,027			—
Principal payments:
Other liabilities	(6,032		)	—
Capital lease obligations	(40		)	(31		)
Cash dividends paid	(3,943		)	(2,517		)
Purchase of shares by ESOP	2,010			1,606
Issuance of restricted stock	3			2
Proceeds from exercise of stock options & issuance of common stock	54			147
Shares repurchased for tax withholdings on stock compensation	(2,967		)	(2,126		)
Net cash provided by (used in) financing activities	110,408			(974,604		)
Effect of exchange rate changes on cash	(245		)	—
Net change in cash and cash equivalents	56,484			(1,160,023		)
Cash and cash equivalents at beginning of year	99,977			1,267,586
Cash and cash equivalents at end of year	$	156,461		$	107,563

META FINANCIAL GROUP, INC. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows (Con't.)

	Six Months Ended March 31,
	2019		2018
Supplemental disclosure of cash flow information
Cash paid during the period for:
Interest	$	18,389	$	9,662
Income taxes	1,218		3,966
Franchise taxes	73		66
Other taxes	465		153
Supplemental schedule of non-cash investing activities:
Transfers
Loans and leases to foreclosed real estate or other assets	—		(29,922		)
Loans transferred to held for sale	39,452		—
Purchases/Sales of investment securities accrued, not settled
Purchases - Available for sale	—		—
Securities transferred from held-to-maturity to available-for-sale	—		(306,000		)
Short and long term debt transferred from other liabilities	20,026		—

See Notes to Condensed Consolidated Financial Statements.

8

NOTE 1. BASIS OF PRESENTATION

The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2018 included in Meta Financial Group, Inc.’s (“Meta” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 29, 2018.  Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.

The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X.  Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and sixmonth periods ended March 31, 2019 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2019.

All share and per share data reported in this Form 10-Q has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.

Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income.

Certain amounts in the Recorded Investment table presented in Note 4 to the consolidated financial statements have been restated from what was previously reported as of September 30, 2018 on Form 10-K.

Loan and lease tables have been conformed to be consistent with the Company's updated presentation of its lending portfolio. The new presentation includes expanding the commercial and consumer finance portfolio to present the lending categories that are included in each, presenting the warehouse finance portfolio as its own category, and condensing the community bank loan categories. Warehouse finance loans were previously included in the consumer finance portfolio. All current and prior period numbers are reflective of this new presentation and total loan and lease balances remained unchanged.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")

Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2018 remain substantially unchanged with the exception of the policies impacted by the adoption of noted ASUs below.

Adopted ASUs

Revenue Recognition - The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), subsequent related Updates (collectively, ASU 2014-09), and ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage of Certain Prepaid Stored-Value Products on October 1, 2018. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative-effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s Meta Payment Systems (MPS) division. Refer to Note 12. Revenue from Contracts with Customers for additional information.

9

Financial Instruments - The Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities and related Updates (collectively, ASU 2016-01) on October 1, 2018. ASU 2016-01 makes several revisions to Subtopic 825-10, including that ASU 2016-01: (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies impairment assessment of equity investments without readily determinable fair value, (3) eliminates requirement to disclose methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost, (4) requires the use of an exit price notion when measuring fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and liabilities by measurement category and form of financial asset on the balance sheet and accompanying notes. Upon adoption, the Company recorded a cumulative-effect adjustment that reclassed $0.5 million, net of tax, from accumulated other comprehensive income to retained earnings, due to the Company’s cumulative change in fair value of equity securities with readily determinable fair value. Refer to Note 6. Securities for additional information.

The Company also adopted the following ASUs on October 1, 2018, none of which had a material impact on the Company’s consolidated financial statements.

– ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

– ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash

– ASU 2017-01, Clarifying the Definition of a Business

– ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

– ASU 2017-05, Other Income - Gains and Losses from Derecognition of Non-Financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and accounting for Partial Sales of Non-Financial Assets

– ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

ASUs to be Adopted

Leases - ASU 2016-02, Leases (Topic 842), and related Updates (collectively Topic 842) will become effective for the Company on October 1, 2019. For lessees, Topic 842 establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with such classification affecting the pattern and classification of expense recognition in the income statement. For lessors, the guidance with Topic 842 is largely unchanged from current guidance.

A modified retrospective transition approach is required. An entity may choose to use either (1) the standard’s effective date or (2) the beginning of the earliest comparative period presented in the financial statements, as the date of initial application. The Company expects to adopt Topic 842 using the effective date, October 1, 2019, as the date of initial application. Consequently, financial information will not be updated and disclosures required under Topic 842 will not be provided for dates and periods before October 1, 2019.

FASB has released several updates to Topic 842 through subsequent ASUs, many of which allow for practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company to not reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements, with the latter not being applicable to the Company. The new standard also provides practical expedients for a lessee’s and lessor’s ongoing accounting. The Company expects to elect the short-term lease recognition exemption for all leases that qualify. The Company (as a lessee and lessor) also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases that qualify.

As a lessee, the Company expects Topic 842 to have a material effect on its financial statements. While the Company continues to assess the effects of adoption, the Company believes the significant effects will relate to (1) recognition of ROU assets and lease liabilities on the balance sheet for the Company’s office and equipment operating leases; (2) recognition of ROU assets and lease liabilities on the balance sheet for the Company’s service contracts that meet the revised definition of a lease under Topic 842; and (3) providing significant new disclosures about the Company’s leasing activities. The Company is currently implementing a methodology and process to estimate and account for the ROU assets and lease liabilities.

As a lessor, the Company continues to assess the effects of adoption, however the Company believes the significant effects will relate to (1) earlier recognition of expense due to a narrower definition of initial direct costs; (2) gross presentation of costs excluded from contract consideration that are reimbursed by the lessee as revenue and expenses on the income statement; and (3) presentation of leasing activities on the Company’s financial statements. The Company is currently in the process of implementing a new lease accounting system, processes and procedures to reflect the new standard.

Other Upcoming ASUs - Refer to the Company’s most recently audited consolidated financial statements for the year ended September 30, 2018 for the latest update on ASUs relevant to the Company and not yet adopted as of March 31, 2019.

NOTE 3. ACQUISITIONS

The Company acquired Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank, on August 1, 2018 for a purchase price of $295.8 million paid by issuance of 9,919,512 shares of Meta common stock. The initial accounting for certain liabilities and goodwill were incomplete and the amounts recorded were considered provisional. The Company recognized certain measurement period adjustments as disclosed below during the three months ended March 31, 2019. The amount of goodwill recorded remains provisional, as well as the other assets and liabilities noted in the table below, as more information becomes available related to DC Solar. The measurement period remains open for the Crestmark acquisition until August 1, 2019. The following table summarizes the allocation of the purchase price to net assets of Crestmark as of the August 1, 2018 acquisition date.

(Dollars in Thousands)	Estimated fair value as previously reported(a)		Measurement period adjustments			Fair value as adjusted
Rental Equipment	$	98,977	$	(3,355	)	$	95,622
Intangible assets	28,253		(117		)	28,136
Goodwill	204,547		4,194			208,742
Accrued expenses and other liabilities	88,301		723			89,024
Net other assets	55,464		—			55,464
Noncontrolling interest	3,167		—			3,167
Purchase price	295,773		—			295,773

^(a) As previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018

Measurement Period Adjustments and Impairment - DC Solar

The Company previously purchased a portfolio of mobile solar generators ("MSGs") from DC Solar Solutions, Inc. and certain of its affiliates, a relationship in the Company's solar leasing business, and, in turn, leased the MSGs to DC Solar Distribution, Inc., an affiliate of DC Solar Solutions. During the second fiscal quarter of 2019, the Company became aware that the DC Solar entities and their affiliates filed for bankruptcy and the entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. The Company had three separate operating leases with DC Solar - two of the transactions were included in the acquired Crestmark balances on August 1, 2018. The third transaction was originated in August 2018 after the Crestmark acquisition date. The Company considered the bankruptcy filing and fraud allegations as new facts and circumstances and concluded the alleged fraud existed at the acquisition date for the acquired DC Solar transactions. As a result, the identified impairment for the acquired DC Solar transactions and other related adjustments were recorded as measurement period adjustments to the acquired assets and liability amounts recognized and were offset through provisional goodwill. The impairment and related adjustments for the DC Solar transaction originated post-acquisition are reflected in current earnings.

The Company continues to gather information about the situation and, as of the date of this filing, has identified and located 175 of 176 of the underlying assets, however the timing and extent to which the Company will be able to recover and re-lease the underlying assets remains uncertain, due in part to claims by third parties as to their potential interests in the underlying assets. The adjustments to goodwill and impairment recognized for the DC Solar events reflect the Company's best estimate of the potential loss incurred, based on the Company's present understanding of the relevant facts. Assumptions utilized in the estimate included recoverability of the MSGs and the Company's ability to re-lease them, contractual rents, and residual values. As new facts and circumstances become available, the Company will assess any remaining exposure with respect to these DC Solar matters to determine whether additional adjustments to goodwill and/or impairment loss is necessary. As long as the required criteria under GAAP are met, the Company will continue to account for adjustments to the acquired DC Solar transactions as adjustments to goodwill until the measurement period closes, which will not extend beyond August 1, 2019.

The table below reflects the net impact of the foregoing DC Solar matters, based upon the Company's present understanding of the relevant facts and circumstances, to the Company's financial statements at March 31, 2019 and for the three months ended March 31, 2019.

		Increase (Decrease)
Balance Sheet:		(Dollars in Thousands)
	Operating lease equipment	$	(12,589	)
	Goodwill	1,968
	Other assets	(394		)
	Liabilities	(4,461		)
	Total balance sheet impact	$	(6,554	)
	Regulatory capital impact	$	(8,522	)
		Income (Expense)
Income Statement:
	Rental income	$	1,633
	Other income	315
	Impairment	(9,549		)
	Income tax benefit	1,047
	Impact to net income	$	(6,554	)

Measurement Period Adjustments - Other

The Company recorded additional measurement period adjustments in the second fiscal quarter of 2019 for provisional tax and compensation liabilities assumed through the Crestmark acquisition. The Company obtained additional information about facts and circumstances existing at the Crestmark acquisition date that resulted in an increase to liabilities and goodwill recognized of $2.2 million.

NOTE 4. LOANS AND LEASES, NET

Loan and lease tables have been conformed to be consistent with the Company's updated categorization of its lending portfolio between National Lending and Community Banking.

Loans and leases at March 31, 2019 and September 30, 2018 were as follows:

	March 31, 2019			September 30, 2018
National Lending	(Dollars in Thousands)
Asset based lending	$	572,210		$	477,917
Factoring	287,955			284,221
Lease financing	321,414			265,315
Insurance premium finance	307,875			337,877
SBA/USDA	77,481			59,374
Other commercial finance	98,956			85,145
Commercial finance	1,665,891			1,509,849
Consumer credit products	139,617			80,605
Other consumer finance	170,824			189,756
Consumer finance(1)	310,441			270,361
Tax services	84,824			1,073
Warehouse finance(1)	186,697			65,000
Total National Lending	2,247,853			1,846,283
Community Banking
Commercial real estate and operating	869,917			790,890
Consumer one-to-four family real estate and other	257,079			247,318
Agricultural real estate and operating	60,167			60,498
Total Community Banking	1,187,163			1,098,706
Total gross loans and leases	3,435,016			2,944,989
Allowance for loan and lease losses	(48,672		)	(13,040		)
Net deferred loan origination fees (costs)	2,964			(250		)
Total loans and leases, net(2)	$	3,389,308		$	2,931,699

⁽¹⁾ Warehouse finance loans are presented in their own line. Previously these balances were included with consumer finance loans. Prior period balances have also been adjusted to reflect this change.

⁽²⁾ As of March 31, 2019, the remaining balance of acquired loans and leases from the Crestmark acquisition was $591.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $8.7 million and $4.5 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.8 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

During the six months ended March 31, 2019, the Company transferred $39.5 million of consumer credit product loans to held for sale and originated $43.0 million of SBA/USDA and consumer credit product loans as held for sale. The Company sold held for sale loans resulting in proceeds of $36.5 million and gains on sale of $1.7 million during the six months ended March 31, 2019. During the six months ended March 31, 2018, the Company did not designate any loans as held for sale or sell any held for sale loans.

13

Loans purchased and sold by portfolio segment, including participation interests, for the three and six months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended				Six Months Ended
	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Loans Purchased	(Dollars in Thousands)
Loans held for sale	$	5,940	$	—	$	5,940	$	—
Loans held for investment:
Total National Lending	10,621		—		125,591		72,751
Total Community Banking	7,432		13,823		18,513		16,235
Total purchases	23,933		13,823		150,044		88,986
Loans Sold
Loans held for sale	28,051		—		34,904		—
Loans held for investment:
Total Community Banking	10,479		3,666		10,857		9,582
Total sales	$	38,530	$	3,666	$	45,761	$	9,582

The net investment in direct financing and sales-type leases is comprised of the following as of March 31, 2019 and September 30, 2018.

	March 31, 2019			September 30, 2018
	(Dollars in Thousands)
Minimum lease payments receivable	$	366,361		$	301,835
Estimated residual value of leased equipment	11,328			12,406
Unamortized initial direct costs	4,190			1,806
Premium on acquired leases	9			26
Unearned income	(56,266		)	(48,949		)
Net investment in direct financing and sales-type leases	$	325,622		$	267,124

Future minimum lease payments receivable on noncancelable direct financing and sales-type leases were as follows as of March 31, 2019.

	As of March 31, 2019
	(Dollars in thousands)
Remaining in 2019	$	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$	366,361

The Company did not record any contingent rental income from sales-type and direct financing leases in the six months endedMarch 31, 2019.

14

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for each of the three and six months ended March 31, 2019 and 2018 was as follows:

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	2,065	$	1,365		$	—		$	69	$	3,499
Factoring	1,062		1,799			(1,125		)	25		1,761
Lease financing	1,084		1,671			(1,044		)	254		1,965
Insurance premium finance	972		1,797			(1,877		)	27		919
SBA/USDA	253		221			—			—		474
Other commercial finance	291		234			—			—		525
Commercial finance	5,727		7,087			(4,046		)	375		9,143
Consumer credit products	1,151		163			—			—		1,314
Other consumer finance	4,222		3,336			(2,456		)	28		5,130
Consumer finance	5,373		3,499			(2,456		)	28		6,444
Tax services	1,546		22,473			(1		)	84		24,102
Warehouse finance	176		9			—			—		185
Total National Lending	12,822		33,068			(6,503		)	487		39,874
Community Banking
Commercial real estate and operating	6,570		103			—			—		6,673
Consumer one-to-four family real estate and other	719		259			(20		)	—		958
Agricultural real estate and operating	1,179		(112		)	—			100		1,167
Total Community Banking	8,468		250			(20		)	100		8,798
Total	$	21,290	$	33,318		$	(6,523	)	$	587	$	48,672

15

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	107	$	3,528		$	(262	)	$	126	$	3,499
Factoring	64		3,022			(1,375		)	50		1,761
Lease financing	59		1,542			(1,462		)	1,826		1,965
Insurance premium finance	1,031		1,890			(2,085		)	83		919
SBA/USDA	13		461			—			—		474
Other commercial finance	28		497			—			—		525
Commercial finance	1,302		10,940			(5,184		)	2,085		9,143
Consumer credit products	785		529			—			—		1,314
Other consumer finance	2,820		6,359			(4,079		)	30		5,130
Consumer finance	3,605		6,888			(4,079		)	30		6,444
Tax services	—		23,969			(43		)	176		24,102
Warehouse finance	65		120			—			—		185
Total National Lending	4,972		41,917			(9,306		)	2,291		39,874
Community Banking
Commercial real estate and operating	6,220		453			—			—		6,673
Consumer one-to-four family real estate and other	632		346			(20		)	—		958
Agricultural real estate and operating	1,216		(299		)	—			250		1,167
Total Community Banking	8,068		500			(20		)	250		8,798
Total	$	13,040	$	42,417		$	(9,326	)	$	2,541	$	48,672

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	725	$	214		$	(339	)	$	146	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	729		214			(339		)	146		750
Tax services	1,435		18,129			—			9		19,573
Total National Lending	2,164		18,343			(339		)	155		20,323
Community Banking
Commercial real estate and operating	3,149		951			—			—		4,100
Consumer one-to-four family real estate and other	665		233			—			3		901
Agricultural real estate and operating	1,984		(1,273		)	—			54		765
Unallocated	900		89			—			—		989
Total Community Banking	6,698		—			—			57		6,755
Total	$	8,862	$	18,343		$	(339	)	$	212	$	27,078

16

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	796	$	265		$	(468	)	$	153	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	800		265			(468		)	153		750
Tax services	5		19,146			—			422		19,573
Total National Lending	805		19,411			(468		)	575		20,323
Community Banking
Commercial real estate and operating	2,820		1,280			—			—		4,100
Consumer one-to-four family real estate and other	809		120			(31		)	3		901
Agricultural real estate and operating	2,574		(1,863		)	—			54		765
Unallocated	526		463			—			—		989
Total Community Banking	6,729		—			(31		)	57		6,755
Total	$	7,534	$	19,411		$	(499	)	$	632	$	27,078

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	62	$	3,437	$	3,499	$	5,965	$	566,245	$	572,210
Factoring	12		1,749		1,761		6,034		281,921		287,955
Lease financing	67		1,898		1,965		2,299		319,115		321,414
Insurance premium finance	—		919		919		—		307,875		307,875
SBA/USDA	—		474		474		—		77,481		77,481
Other commercial finance	—		525		525		—		98,956		98,956
Commercial finance	141		9,002		9,143		14,298		1,651,593		1,665,891
Consumer credit products	—		1,314		1,314		—		139,617		139,617
Other consumer finance	—		5,130		5,130		1,236		169,588		170,824
Consumer finance	—		6,444		6,444		1,236		309,205		310,441
Tax services	—		24,102		24,102		—		84,824		84,824
Warehouse finance	—		185		185		—		186,697		186,697
Total National Lending	141		39,733		39,874		15,534		2,232,319		2,247,853
Community Banking
Commercial real estate and operating	—		6,673		6,673		—		869,917		869,917
Consumer one-to-four family real estate and other	—		958		958		134		256,945		257,079
Agricultural real estate and operating	—		1,167		1,167		1,220		58,947		60,167
Total Community Banking	—		8,798		8,798		1,354		1,185,809		1,187,163
Total	$	141	$	48,531	$	48,672	$	16,888	$	3,418,128	$	3,435,016

17

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment(1)		Ending balance: collectively evaluated for impairment(1)		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	107	$	107	$	1,404	$	476,513	$	477,917
Factoring	—		64		64		3,331		280,890		284,221
Lease financing	—		59		59		8,877		256,438		265,315
Insurance premium finance	—		1,031		1,031		—		337,877		337,877
SBA/USDA	—		13		13		—		59,374		59,374
Other commercial finance	—		28		28		—		85,145		85,145
Commercial finance	—		1,302		1,302		13,612		1,496,237		1,509,849
Consumer credit products	—		785		785		—		80,605		80,605
Other consumer finance	—		2,820		2,820		—		189,756		189,756
Consumer finance	—		3,605		3,605		—		270,361		270,361
Tax services	—		—		—		—		1,073		1,073
Warehouse finance	—		65		65		—		65,000		65,000
Total National Lending	—		4,972		4,972		13,612		1,832,671		1,846,283
Community Banking
Commercial real estate and operating	—		6,220		6,220		451		790,439		790,890
Consumer one-to-four family real estate and other	—		632		632		94		247,224		247,318
Agricultural real estate and operating	—		1,216		1,216		1,454		59,044		60,498
Total Community Banking	—		8,068		8,068		1,999		1,096,707		1,098,706
Total	$	—	$	13,040	$	13,040	$	15,611	$	2,929,378	$	2,944,989

⁽¹⁾ Balances have been restated from what was previously reported as of September 30, 2018 on the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2018.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's primary regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.”  The loan and lease classification and risk rating definitions are as follows:

Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.

Watch- A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures.  Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention.  These assets are of better quality than special mention assets.

Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.

The adverse classifications are as follows:

Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position.  Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected.  Loss potential does not have to exist for an asset to be classified as substandard.

18

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors, the asset’s classification as loss is not yet appropriate.

Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.

General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets.  When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount.  The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location.  Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the Allowance for Loan and Lease Losses.

The asset classification of loans and leases at March 31, 2019 and September 30, 2018 were as follows:

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	493,351	$	—	$	72,894	$	5,965	$	572,210
Factoring	237,880		—		44,041		6,034		287,955
Lease financing	303,742		—		14,652		3,020		321,414
Insurance premium finance	307,875		—		—		—		307,875
SBA/USDA	63,428		—		14,053		—		77,481
Other commercial finance	98,380		—		576		—		98,956
Commercial finance	1,504,656		—		146,216		15,019		1,665,891
Consumer credit products	139,617		—		—		—		139,617
Other consumer finance	170,824		—		—		—		170,824
Consumer finance	310,441		—		—		—		310,441
Tax services	84,824		—		—		—		84,824
Warehouse finance	186,697		—		—		—		186,697
Total National Lending	2,086,618		—		146,216		15,019		2,247,853
Community Banking
Commercial real estate and operating	857,897		6,672		5,348		—		869,917
Consumer one-to-four family real estate and other	253,698		2,999		306		76		257,079
Agricultural real estate and operating	43,260		5,331		3,038		8,538		60,167
Total Community Banking	1,154,855		15,002		8,692		8,614		1,187,163
Total loans and leases	$	3,241,473	$	15,002	$	154,908	$	23,633	$	3,435,016

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Asset Classification	Pass		Watch		Special Mention		Substandard		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	418,635	$	—	$	57,877	$	1,405	$	477,917
Factoring	248,246		—		32,644		3,331		284,221
Lease financing	252,487		—		3,951		8,877		265,315
Insurance premium finance	336,296		—		1,581		—		337,877
SBA/USDA	39,093		—		20,281		—		59,374
Other commercial finance	85,145		—		—		—		85,145
Commercial finance	1,379,902		—		116,334		13,613		1,509,849
Consumer credit products	80,605		—		—		—		80,605
Other consumer finance	189,756		—		—		—		189,756
Consumer finance	270,361		—		—		—		270,361
Tax services	1,073		—		—		—		1,073
Warehouse finance	65,000		—		—		—		65,000
Total National Lending	1,716,336		—		116,334		13,613		1,846,283
Community Banking
Commercial real estate and operating	778,445		12,251		194		—		790,890
Consumer one-to-four family real estate and other	246,463		537		239		79		247,318
Agricultural real estate and operating	42,292		2,447		4,872		10,887		60,498
Total Community Banking	1,067,200		15,235		5,305		10,966		1,098,706
Total loans and leases	$	2,783,536	$	15,235	$	121,639	$	24,579	$	2,944,989

National Lending (Commercial Finance, Consumer Finance, Tax Services and Warehouse Finance)

Commercial Finance

The Company's commercial finance product lines include asset-based lending, factoring, leasing, commercial insurance premium finance, and other commercial finance products offered on a nationwide basis. Asset-based lending and factoring primarily service small businesses that are startups, distressed and/or generally that may not otherwise qualify for traditional bank financing. Leasing focuses on providing equipment finance solutions to mid-market companies. These product offerings supplement the asset generation capacity in our community bank and tax services divisions and enhance the overall yield of our loan and lease portfolio, enabling us to earn attractive risk-adjusted net interest margins.

Asset-Based Lending. Through its Crestmark division, the Bank provides asset-based loans secured by debtors' short-term assets such as inventory, accounts receivable, and work-in-process. Asset-based loans may also be secured by real estate and equipment. The primary sources of repayment are the operating income of the borrower, the collection of the receivables securing the loan, and/or the sale of the inventory securing the loan. Loans are typically revolving lines of credit with terms of one to three years, whereby the Bank withholds a contingency reserve representing the difference between the amount advanced and the fair value of the invoice amount or other collateral value. Credit risk is managed through advance rates appropriate for the collateral, standardized loan policies, established and authorized credit limits, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the debtors' cash receipts. The Bank also originates collateralized term loans and notes receivable, with terms ranging from three to 25 years.

Factoring. Through its Crestmark division, the Bank provides factoring lending where clients provide detailed inventory, accounts receivable, and work-in-process reports for lending arrangements. The factoring clients are diversified as to industry and geography. With these loans, the Crestmark division withholds a contingency reserve, which is the difference between the fair value of the invoice amount or other collateral value and the amount advanced. This reserve is withheld for nonpayment of factored receivables, service fees and other adjustments. Credit risk is managed through standardized advance policies, established and authorized credit limits, verification of receivables, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the client's cash receipts. In addition, clients generally guarantee the payment of purchased accounts receivable.

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Lease Financing. Through its Crestmark division, the Bank provides creative, flexible lease solutions for technology, capital equipment and select transportation assets like tractors and trailers. Direct financing leases and sales-type leases substantially transfer the benefits and risks of equipment ownership to the lessee.  The lease may contain provisions that transfer ownership to the lessee at the end of the initial term, contain a bargain purchase option or allow for purchase of the equipment at fair market value.  Residual values are estimated at the inception of the lease.  Lease maturities are generally no greater than 84 months. The focus in this lease financing category is to support middle market companies by providing a variety of financing products to help them meet their business objectives.

Insurance Premium Finance. Through its AFS/IBEX division the Bank provides, on a national basis, short-term, primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk, otherwise known as insurance premium financing. This includes, but is not limited to, policies for commercial property, casualty and liability risk.  Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term.  The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine to 10 months on average.  The down payment is set such that if the policy is canceled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation.

Small Business Administration ("SBA") and United States Department of Agriculture ("USDA"). The Bank originates loans through programs partially guaranteed by the SBA or USDA. These loans are made to small businesses and professionals with what the Bank believes are lower risk characteristics.

Other Commercial Finance. Included in this category of loans are the Company's healthcare receivables loan portfolio primarily comprised of loans to individuals for medical services received. The majority of these loans are guaranteed by the hospital providing the service to the debtor and this guarantee serves to reduce credit risk as the guarantors agree to repurchase severely delinquent loans. Credit risk is minimized on these loans based on the guarantor’s repurchase agreement. This loan category also includes commercial real estate loans to customers of the Crestmark division.

Consumer Finance

Consumer Credit Products. Through the acquisition of Specialty Consumer Services, the Bank acquired a platform that provides a total solution for marketplace lending, including underwriting and loan management in the direct-to-consumer credit business. The acquired platform allows the Bank to provide innovative lending solutions through consumer credit products. The Company designs and structures its credit programs in an effort to insulate the Company from program losses and to potentially increase the liquidity attributes of such lending programs' marketability to potential bank or other purchasers. While each program is different, all contain one or more types of credit enhancements, loss protections, or trigger events. When determining the applicable program enhancement, generally, the Company uses proprietary data provided by the Company’s partner, with respect to such program, supplemented with public data to design and shape appropriate loss curves, as well as implement stresses significantly higher than base to provide protection in changing credit cycles. Credit enhancements are typically built through holding excess program interest and fees in a reserve account to pay program credit losses. Cash flow waterfall positioning allows for losses and Company program principal and interest to be paid, under certain circumstances, before servicing or other program expenses. Trigger events allow programs and originations to be suspended if certain vintage loss limits, during a specific period of time, are triggered or if cumulative loss percentages are triggered. These triggers are designed to allow the Company to address potential issues quickly. Other trigger events in certain programs provide for excess credit or reserve enhancements, which could be beyond excess interest amounts, if certain loss triggers are breached. The Bank applies a reserve for loan losses of approximately 1% on outstanding loan balances within each of the consumer credit product programs.

Through March 31, 2019, the Bank has launched two consumer credit programs. During the second quarter of fiscal 2018, the Bank entered into a three-year program agreement with Liberty Lending, LLC ("Liberty Lending") whereby the Bank provides personal loans to Liberty Lending customers. The Bank and Liberty Lending market the program jointly through a wide variety of marketing channels. The loan products under the agreement with Liberty Lending are closed-end installment loans ranging from $3,500 to $45,000 in initial principal amount with durations of between 13 and 60 months.

21

The Bank entered into a three-year agreement with Health Credit Services ("HCS") during the third quarter of fiscal 2018. The Bank approves and originates loans for elective medical procedures for select HCS provider offices throughout the United States. HCS works with its provider partners to market the loans, as well as provide servicing for them. The loan products offered are unsecured, closed-end installment loans with terms between 12 and 84 months and revolving lines of credit with durations between six and 60 months.

Other Consumer Finance. The Bank's purchased student loan portfolios are seasoned, floating rate, private portfolios that are serviced by a third-party servicer. The portfolio purchased during the first quarter of fiscal year 2018 is indexed to one-month LIBOR, while the portfolio purchased in the first quarter of fiscal year 2017 is indexed to three-month LIBOR plus various margins. The Company received written notification on June 18, 2018 from ReliaMax Surety Company ("ReliaMax"), the company that provided insurance coverage for the student loan portfolios, which informed policy holders that the South Dakota Division of Insurance filed a petition to have ReliaMax declared insolvent and to adopt a plan of liquidation. An Order of Liquidation was entered on June 27, 2018 by the Sixth Circuit Court in Hughes County, South Dakota, declaring ReliaMax insolvent and appointing the South Dakota Division of Insurance as liquidator to adopt a plan of liquidation. The Company expects to ultimately recover a portion of the unearned premiums, which could take a year or longer.

Tax Services

The Bank's tax services division provides short-term taxpayer advance loans. Taxpayers are underwritten to determine eligibility for these unsecured loans. Due to the nature of taxpayer advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a taxpayer advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful.

Through its tax services division, the Bank provides short-term electronic return originator ("ERO") advance loans on a nationwide basis. These loans are typically utilized by tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Bank will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful.

Warehouse Finance

In fiscal 2018, the Bank entered into a first-out participation agreement in a consumer receivable asset-backed warehouse line of credit, with the Bank holding a senior collateral position enhanced by a subordinate party structure. During the first quarter of fiscal 2019, the Bank entered into two additional first-out participation agreements in asset-backed warehouse lines of credit, including consumer loan receivables and small business loan receivables. The senior collateral position of the Bank is supported by a subordinate party position.

Community Banking

Commercial Real Estate and Operating. The Company engages in commercial and multi-family real estate lending in the community bank's primary market areas and surrounding areas. These loans are secured primarily by apartment buildings, office buildings, and hotels.  Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property securing the loan, and are typically secured by guarantees of the borrowers.  The Company has a variety of rate adjustment features and other terms in its commercial and multi-family real estate loan portfolio.  Commercial and multi-family real estate loans provide for a margin over a number of different indices.  In underwriting these loans, the Company analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan.  Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers.

The repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project.  If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.

22

The Company originates its community banking commercial operating loans primarily in its market areas.  Most of these commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable.  Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment.  Generally, the maximum term on non-mortgage lines of credit is one year. 

The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s management ability, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower.  Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s current credit analysis. Commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business.  As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment).  The Company’s commercial operating loans are usually secured by business assets and personal guarantees.  However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

Consumer One-to-Four Family Real Estate and Other. One-to-four family real estate loan originations are typically generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate loans and adjustable-rate mortgage ("ARM") loans for both permanent structures and those under construction. The Company’s one-to-four family real estate loan originations are secured primarily by properties located in the community bank's primary market areas and surrounding areas.

The Company originates one-to-four family real estate loans with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the property securing the loan or the contract price. However, the vast majority of these loans are originated with loan-to-value ratios below 80%. The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level. Due to consumer demand, the Company also offers fixed-rate mortgage loans with terms up to 30 years, which may conform to secondary market standards such as those imposed by Fannie Mae, Ginnie Mae, and Freddie Mac. The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales.  The Company also currently offers five- and ten-year ARM loans.

In underwriting one-to-four family real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan.  Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors of the Company.  The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan.  Real estate loans originated by the Company generally contain a “due on sale” clause that allows the Company to declare the unpaid principal balance due and payable upon the sale of the security property.  The Company has not engaged in sub-prime residential mortgage originations.

The Company originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans, as well as loans secured by savings deposits in its primary market areas and surrounding areas. Substantially all of the Company’s home equity loans and lines of credit are secured by second mortgages on principal residences.  The Bank will lend amounts that, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan.  Home equity loans and lines of credit generally have maximum terms of five years.

Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower.  The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan.  Although creditworthiness of the applicant is a primary consideration, the underwriting process also may include a comparison of the value of the security, if any, in relation to the proposed loan amount.

23

Agricultural Real Estate and Operating. The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer, and other farm-related products, primarily in its market areas. Agricultural operating loans are originated at either an adjustable- or fixed-rate of interest for up to a one-year term or, in the case of livestock, are due upon sale. Agricultural real estate loans are frequently originated with adjustable rates of interest.  Generally, such loans provide for a fixed rate of interest for the first five to 10 years, after which the loan will balloon or the interest rate will adjust annually. These loans generally amortize over a period of 20 to 25 years. Fixed-rate agricultural real estate loans typically have terms up to 10 years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan.

Payments on loans are dependent on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. The success of the loan may also be affected by many factors outside the control of the borrower such as weather, government support programs and grain and livestock prices. These risks may be reduced, by the farmer, with the use of crop insurance coverage and futures contracts or options to mitigate price risk, both of which the Company frequently requires of the borrowers to help ensure loan repayment. Many farms are also dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm.

Past due loans and leases at March 31, 2019 and September 30, 2018 were as follows:

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	799	$	1,712	$	78	$	2,589	$	569,621	$	572,210	$	—	$	266	$	266
Factoring	—		—		—		—		287,955		287,955		—		716		716
Lease financing	9,291		1,227		1,761		12,279		309,135		321,414		645		1,802		2,447
Insurance premium finance	2,009		767		1,640		4,416		303,459		307,875		1,640		—		1,640
SBA/USDA	1,078		—		—		1,078		76,403		77,481		—		—		—
Other commercial finance	—		—		—		—		98,956		98,956		—		—		—
Commercial finance	13,177		3,706		3,479		20,362		1,645,529		1,665,891		2,285		2,784		5,069
Consumer credit products	1,080		667		420		2,167		137,450		139,617		420		—		420
Other consumer finance	1,256		504		1,853		3,613		167,211		170,824		1,853		—		1,853
Consumer finance	2,336		1,171		2,273		5,780		304,661		310,441		2,273		—		2,273
Tax services	667		—		—		667		84,157		84,824		—		—		—
Warehouse finance	—		—		—		—		186,697		186,697		—		—		—
Total National Lending	16,180		4,877		5,752		26,809		2,221,044		2,247,853		4,558		2,784		7,342
Community Banking
Commercial real estate and operating	271		—		—		271		869,646		869,917		—		—		—
Consumer one-to-four family real estate and other	110		250		76		436		256,643		257,079		—		76		76
Agricultural real estate and operating	—		—		2,200		2,200		57,967		60,167		2,200		—		2,200
Total Community Banking	381		250		2,276		2,907		1,184,256		1,187,163		2,200		76		2,276
Total Loans and Leases	$	16,561	$	5,127	$	8,028	$	29,716	$	3,405,300	$	3,435,016	$	6,758	$	2,860	$	9,618

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	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	1,235	$	2,151	$	94	$	3,480	$	474,437	$	477,917	$	94	$	—	$	94
Factoring	—		—		—		—		284,221		284,221		—		—		—
Lease financing	16,542		532		2,921		19,995		245,320		265,315		726		2,864		3,590
Insurance premium finance	1,864		1,019		2,981		5,864		332,013		337,877		2,981		—		2,981
SBA/USDA	1,067		—		—		1,067		58,307		59,374		—		—		—
Other commercial finance	—		—		—		—		85,145		85,145		—		—		—
Commercial finance	20,708		3,702		5,996		30,406		1,479,443		1,509,849		3,801		2,864		6,665
Consumer credit products	532		284		147		963		79,642		80,605		147		—		147
Other consumer finance	2,677		1,311		2,237		6,225		183,531		189,756		2,237		—		2,237
Consumer finance	3,209		1,595		2,384		7,188		263,173		270,361		2,384		—		2,384
Tax services	—		—		1,073		1,073		—		1,073		1,073		—		1,073
Warehouse finance	—		—		—		—		65,000		65,000		—		—		—
Total National Lending	23,917		5,297		9,453		38,667		1,807,616		1,846,283		7,258		2,864		10,122
Community Banking
Commercial real estate and operating	—		—		—		—		790,890		790,890		—		—		—
Consumer one-to-four family real estate and other	105		—		79		184		247,134		247,318		79		—		79
Agricultural real estate and operating	—		—		—		—		60,498		60,498		—		—		—
Total Community Banking	105		—		79		184		1,098,522		1,098,706		79		—		79
Total Loans and Leases	$	24,022	$	5,297	$	9,532	$	38,851	$	2,906,138	$	2,944,989	$	7,337	$	2,864	$	10,201

Certain loans and leases 89 days or more past due as to interest or principal continue to accrue because they are (1) well-secured and in the process of collection or (2) one-to-four family real estate loans or consumer loans exempt under regulatory rules from being classified as non-accrual until later delinquency, usually 120 days past due.

When analysis of borrower or lessee operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan or lease is evaluated for impairment.  Often, this is associated with a delay or shortfall in scheduled payments, as described above.

25

Impaired loans and leases at March 31, 2019 and September 30, 2018 were as follows:

March 31, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	4,887	$	5,399	$	—
Factoring	6,009		7,084		—
Lease financing	2,209		2,209		—
Commercial finance	13,105		14,692		—
Other consumer finance	1,236		1,304		—
Consumer finance	1,236		1,304		—
Total National Lending	14,341		15,996		—
Community Banking
Consumer one-to-four family real estate and other	134		153		—
Agricultural real estate and operating	1,220		1,220		—
Total Community Banking	1,354		1,373		—
Total	$	15,695	$	17,370	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	1,078	$	1,078	$	62
Factoring	25		25		12
Lease financing	90		90		67
Commercial finance	1,193		1,193		141
Total National Lending	1,193		1,193		141
Total	$	1,193	$	1,193	$	141

September 30, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	1,325	$	1,325	$	—
Factoring	1,383		1,713		—
Lease financing	5,491		5,491		—
Commercial finance	8,199		8,529		—
Total National Lending	8,199		8,529		—
Community Banking	405		405		—
Commercial real estate and operating	140		140		—
Consumer one-to-four family real estate and other	1,454		1,454		—
Agricultural real estate and operating	1,999		1,999		—
Total	$	10,198	$	10,528	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	79	$	79	$	22
Factoring	1,948		2,198		49
Lease financing	3,386		3,386		517
Commercial finance	5,413		5,663		588
Total National Lending	5,413		5,663		588
Total	$	5,413	$	5,413	$	588

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The following table provides the average recorded investment in impaired loans and leases for the three and sixmonth periods ended March 31, 2019 and 2018.

Three Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	3,569	$	95	$	—	$	—
Factoring	3,131		—		—		—
Lease financing	4,100		7		—		—
Commercial finance	10,800		102		—		—
Other consumer finance	1,232		10		—		—
Consumer finance	1,232		10		—		—
Total National Lending	12,032		112		—		—
Community Banking
Commercial real estate and operating	268		—		705		5
Consumer one-to-four family real estate and other	137		—		229		6
Agricultural real estate and operating	1,414		10		1,680		50
Total Community Banking	1,819		10		2,614		61
Total loans and leases	$	13,851	$	122	$	2,614	$	61

Six Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	2,648	$	174	$	—	$	—
Factoring	2,956		5		—		—
Lease financing	5,842		17		—		—
Commercial finance	11,446		196		—		—
Other consumer finance	1,227		10		—		—
Consumer finance	1,227		10		—		—
Total National Lending	12,673		206		—		—
Community Banking
Commercial real estate and operating	336		4		840		10
Consumer one-to-four family real estate and other	138		2		165		9
Agricultural real estate and operating	1,443		35		1,015		64
Total Community Banking	1,917		41		2,020		83
Total loans and leases	$	14,590	$	247	$	2,020	$	83

The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. There were $1.5 million of national lending loans and leases that were modified in a TDR during the three months ended March 31, 2019, all of which were modified to extend the term of the loan, and no community banking loans that were modified in a TDR. There were $2.6 million of community banking loans that were modified in a TDR during the three months ended March 31, 2018.

27

There were $1.6 million of national lending loans and leases and $0.1 million of community banking loans that were modified in a TDR during the six months ended March 31, 2019, all of which were modified to extend the term of the loan. There were $3.8 million of community banking loans that were modified in a TDR during the six months ended March 31, 2018. During the six months ended March 31, 2019, the Company had $0.9 million of community banking loans that were modified as a TDR within the previous 12 months and for which there was a payment default. During the six months ended March 31, 2018, the Company had $0.1 million of community banking loans that were modified as a TDR within the previous 12 months and for which there was a payment default.

At March 31, 2019, foreclosed and repossessed assets totaled $29.5 million, compared to $31.6 million at September 30, 2018. There were no impairments on or valuation allowances established for any foreclosed and repossess assets at either date. The Company did not have any loans or leases in the process of foreclosure at March 31, 2019.

NOTE 5. EARNINGS PER COMMON SHARE

Earnings per common share is computed after deducting any preferred dividends, if applicable. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation. Basic earnings per common share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in earnings per share calculations. The share and per share amounts for fiscal year 2018 have been restated to reflect the 3-for-1 forward stock split of the Company's common stock that was effected by the Company on October 4, 2018.

28

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and six months ended March 31, 2019 and 2018 is presented below.

Three Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Basic income per common share	0.81		1.08
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Outstanding options - based upon the two-class method	67,237		118,956
Weighted average diluted common shares outstanding	39,496,832		29,180,136
Diluted income per common share	0.81		1.08

Six Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Basic income per common share	1.21		1.24
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Outstanding options - based upon the two-class method	68,581		115,038
Weighted average diluted common shares outstanding	39,450,263		29,130,414
Diluted income per common share	1.20		1.24

NOTE 6. SECURITIES

On October 1, 2018, the Company adopted ASU 2016-01 on a prospective basis, which redefined the definition of equity securities and required their segregation from available for sale debt securities. While changes in the fair value of debt securities continue to be recorded in the equity category of accumulated other comprehensive income, the new guidance requires that changes in fair value of equity securities with readily determinable fair value be recorded in current earnings. As required by the new guidance, the unrealized gain in fair value on equity securities with readily determinable fair value (recorded in accumulated other comprehensive income at September 30, 2018) was reclassified to retained earnings on October 1, 2018. The amount of the reclassification was $0.5 million, net of tax. Equity securities with readily determinable fair value include mutual funds of $1.8 million at cost and $1.9 million at fair value at March 31, 2019.

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The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities at March 31, 2019 and September 30, 2018 are presented below.

At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	163,621	$	637	$	(155	)	$	164,103
Obligations of states and political subdivisions	11,432		106		(9		)	11,529
Non-bank qualified obligations of states and political subdivisions	629,732		1,357		(9,447		)	621,642
Asset-backed securities	284,701		1,286		(1,598		)	284,389
Mortgage-backed securities	419,024		1,064		(6,595		)	413,493
Total debt securities AFS	$	1,508,510	$	4,450	$	(17,804	)	$	1,495,156
Common equities and mutual funds(1)(2)	$	3,592	$	619	$	—		$	4,211

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	45,591	$	1	$	(1,255	)	$	44,337
Obligations of states and political subdivisions	17,154		49		(293		)	16,910
Non-bank qualified obligations of states and political subdivisions	1,140,884		826		(31,825		)	1,109,885
Asset-backed securities	310,700		2,585		(257		)	313,028
Mortgage-backed securities	378,301		—		(14,236		)	364,065
Total debt securities AFS	$	1,892,630	$	3,461	$	(47,866	)	$	1,848,225
Common equities and mutual funds(1)	3,172		635		(7		)	3,800
Total AFS securities(1)	$	1,895,802	$	4,096	$	(47,873	)	$	1,852,025

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held to Maturity
At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	146,992	$	—	$	(5,224	)	$	141,768
Mortgage-backed securities	7,606		—		(210		)	7,396
Total held to maturity securities	$	154,598	$	—	$	(5,434	)	$	149,164

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At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	163,893	$	—	$	(10,758	)	$	153,135
Mortgage-backed securities	7,850		—		(422		)	7,428
Total held to maturity securities	$	171,743	$	—	$	(11,180	)	$	160,563

Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary.  This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.

For all securities considered temporarily impaired, the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.

GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: AFS, HTM or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company did not have any trading securities at March 31, 2019 or September 30, 2018.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and September 30, 2018, were as follows:

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	41,845	$	(29	)	$	27,214	$	(126	)	$	69,059	$	(155	)
Obligations of states and political subdivisions	—		—			2,052		(9		)	2,052		(9		)
Non-bank qualified obligations of states and political subdivisions	10,210		(2		)	448,680		(9,445		)	458,890		(9,447		)
Asset-backed securities	148,254		(1,539		)	12,184		(59		)	160,438		(1,598		)
Mortgage-backed securities	32,722		(13		)	282,789		(6,582		)	315,511		(6,595		)
Total debt securities AFS	$	233,031	$	(1,583	)	$	772,919	$	(16,221	)	$	1,005,950	$	(17,804	)
Common equities and mutual funds(1)(2)	—		—			—		—			—		—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

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	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	43,097	$	(1,255	)	$	—	$	—		$	43,097	$	(1,255	)
Obligations of state and political subdivisions	11,036		(279		)	881		(14		)	11,917		(293		)
Non-bank qualified obligations of states and political subdivisions	626,693		(13,539		)	358,095		(18,286		)	984,788		(31,825		)
Asset-backed securities	146,638		(257		)	—		—			146,638		(257		)
Mortgage-backed securities	121,217		(3,292		)	242,849		(10,944		)	364,066		(14,236		)
Total debt securities AFS	$	948,681	$	(18,622	)	$	601,825	$	(29,244	)	$	1,550,506	$	(47,866	)
Common equities and mutual funds(1)	1,818		(7		)	—		—			1,818		(7		)
Total debt AFS securities(1)	$	950,499	$	(18,629	)	$	601,825	$	(29,244	)	$	1,552,324	$	(47,873	)

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held To Maturity	LESS THAN 12 MONTHS				OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)		Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	—	$	—	$	141,768	$	(5,225	)	$	141,768	$	(5,225	)
Mortgage-backed securities	—		—		7,396		(210		)	7,396		(210		)
Total held to maturity securities	$	—	$	—	$	149,164	$	(5,435	)	$	149,164	$	(5,435	)

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	5,767	$	(287	)	$	147,368	$	(10,471	)	$	153,135	$	(10,758	)
Mortgage-backed securities	—		—			7,428		(422		)	7,428		(422		)
Total held to maturity securities	$	5,767	$	(287	)	$	154,796	$	(10,893	)	$	160,563	$	(11,180	)

At March 31, 2019, the investment portfolio included securities with current unrealized losses that have existed for longer than one year.  All of these securities are considered to be acceptable credit risks. Because (i) the declines in fair value were due to changes in market interest rates, not in estimated cash flows, (ii) the Company does not intend or has not made a decision to sell these securities and (iii) it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at March 31, 2019.

32

The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below 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 mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain housing related municipal securities, SBA and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Securities at Fair Value	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)
Due in one year or less	$	1,020	$	1,019
Due after one year through five years	15,058		15,285
Due after five years through ten years	64,894		65,335
Due after ten years	1,008,514		1,000,024
	1,089,486		1,081,663
Mortgage-backed securities	419,024		413,493
Total securities at fair value	$	1,508,510	$	1,495,156

	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due in one year or less	$	2,532	$	2,529
Due after one year through five years	41,415		41,504
Due after five years through ten years	352,099		350,143
Due after ten years	1,118,283		1,089,984
	1,514,329		1,484,160
Mortgage-backed securities	378,301		364,065
Common equities and mutual funds(1)	3,172		3,800
Total securities at fair value	$	1,895,802	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held To Maturity	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)
Due after ten years	$	146,992	$	141,768
	146,992		141,768
Mortgage-backed securities	7,606		7,396
Total held to maturity securities at cost	$	154,598	$	149,164

33

	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due after ten years	$	163,893	$	153,135
	163,893		153,135
Mortgage-backed securities	7,850		7,428
Total held to maturity securities at cost	$	171,743	$	160,563

Other investments, at cost, which are included in other assets on the consolidated statement of financial condition, include equity securities without a readily determinable fair value and shares of stock in the Federal Home Loan Bank ("FHLB") of Des Moines. Equity securities without a readily determinable fair value totaled $2.4 million at March 31, 2019 and $2.0 million at September 30, 2018, respectively. FHLB of Des Moines stock at March 31, 2019 and September 30, 2018 totaled $7.4 million and $23.4 million, respectively. The decrease in FHLB stock directly correlates with lower short-term borrowings balances at March 31, 2019 compared to September 30, 2018. The Company’s wholly-owned subsidiary, MetaBank, is required by federal law to maintain FHLB stock as a member of FHLB of Des Moines. 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, FHLB stock is 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. No impairment was recognized for such investments for the six months ended March 31, 2019.

NOTE 7. RENTAL EQUIPMENT, NET

Rental equipment was as follows as of March 31, 2019 and September 30, 2018.

	March 31, 2019			September 30, 2018
	(Dollars in thousands)
Computers and IT networking equipment	$	43,896		$	53,035
Motor vehicles and other	59,589			43,505
Office furniture and equipment	3,409			3,590
Solar panels and equipment	81,498			57,242
Total	188,392			157,372
Accumulated depreciation	(48,305		)	(50,082		)
Net book value	$	140,087		$	107,290

During the second quarter of fiscal year 2019, an impairment was recorded related to solar panels and equipment. Please refer to Note 3 for further discussion.

Future minimum lease payments receivable on equipment under operating leases was as follows as of March 31, 2019.

	March 31, 2019
	(Dollars in thousands)
2019	$	12,849
2020	20,737
2021	16,290
2022	10,135
2023	8,220
2024 and thereafter	10,164
Total	$	78,395

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NOTE 8. GOODWILL AND INTANGIBLE ASSETS

The Company held a total of $307.5 million of goodwill as of March 31, 2019. The recorded goodwill is a result of multiple business combinations that have occurred since fiscal year 2015, the most recent being the merger with Crestmark pursuant to the Crestmark acquisition that closed on August 1, 2018. Goodwill is assessed for impairment at a reporting unit level, which is one level below the operating segments.

The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months endedMarch 31, 2019 and 2018 were as follows:

	Payments		Banking		Corporate Services/Other		Total
Goodwill	(Dollars in Thousands)
September 30, 2018	$	87,145	$	216,125	$	—	$	303,270
Acquisitions	—		—		—		—
Measurement Period Adjustments (1)	—		4,194		—		4,194
Impairment	—		—		—		—
March 31, 2019	$	87,145	$	220,319	$	—	$	307,464
September 30, 2017	$	87,145	$	11,578	$	—	$	98,723
Acquisitions	—		—		—		—
Impairment	—		—		—		—
March 31, 2018	$	87,145	$	11,578	$	—	$	98,723

⁽¹⁾ The Company recognized measurement period adjustments on provisional goodwill during the second fiscal quarter of 2019 related to the Crestmark acquisition. Refer to Note 3. Acquisitions.

	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2018	$	12,987		$	1,297		$	48,455		$	7,980		$	70,719
Acquisitions during the period	—			—			—			78			78
Amortization during the period	(514		)	(235		)	(8,742		)	(487		)	(9,978		)
Write-offs during the period	—			—			—			(313		)	(313		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506
Gross carrying amount	$	14,624		$	2,480		$	82,088		$	10,667		$	109,859
Accumulated amortization	(2,151		)	(1,418		)	(32,127		)	(2,750		)	(38,446		)
Accumulated impairment	—			—			(10,248		)	(659		)	(10,907		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

⁽¹⁾ Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3-5 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

35

	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2017	$	10,051		$	1,782		$	31,707		$	8,638		$	52,178
Acquisitions during the period	—			—			—			47			47
Amortization during the period	(319		)	(249		)	(3,388		)	(456		)	(4,412		)
Write-offs during the period	—			—			—			(89		)	(89		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724
Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,550		$	81,830
Accumulated amortization	(1,258		)	(947		)	(19,243		)	(1,792		)	(23,240		)
Accumulated impairment	—			—			(10,248		)	(618		)	(10,866		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

⁽¹⁾ Book amortization period of 15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining six months of fiscal 2019 and subsequent fiscal years is as follows:

	(Dollars in Thousands)
Remaining in 2019	$	7,731
2020	10,984
2021	8,525
2022	6,399
2023	5,081
2024	4,363
Thereafter	17,423
Total anticipated intangible amortization	$	60,506

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment.  There was $0.1 million in impairments to intangible assets during the three and six months ended March 31, 2019 and no impairments to intangible assets during the three and six months ended March 31, 2018.

NOTE 9. STOCK COMPENSATION

The Company maintains the amended and restated Meta Financial Group, Inc. 2002 Omnibus Incentive Plan, as amended (the "2002 Omnibus Incentive Plan"), which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of options or fair value of non-vested (restricted) shares granted under the Company’s incentive plan is equal to the fair market value of the underlying stock at the grant date. The Company has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur.

36

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the six months ended March 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Yrs)	Aggregate Intrinsic Value
	(Dollars in Thousands, Except Per Share Data (1))
Options outstanding, September 30, 2018	155,961		$	8.48	1.78	$	2,974
Granted	—		—		—	—
Exercised	(45,132	)	8.95		—	742
Forfeited or expired	(3,027	)	10.60		—	33
Options outstanding, March 31, 2019	107,802		$	8.23	1.47	$	1,235
Options exercisable, March 31, 2019	107,802		$	8.23	1.47	$	1,235

	Number of Shares		Weighted Average Fair Value at Grant
(Dollars in Thousands, Except Per Share Data (1))
Nonvested (restricted) shares outstanding, September 30, 2018	1,005,813		$	29.89
Granted	296,302		24.84
Vested	(347,354	)	26.78
Forfeited or expired	(1,623	)	26.17
Nonvested (restricted) shares outstanding, March 31, 2019	953,138		$	29.46

⁽¹⁾ All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

At March 31, 2019, stock-based compensation expense not yet recognized in income totaled $15.8 million, which is expected to be recognized over a weighted average remaining period of 3.11 years.

NOTE 10. INCOME TAXES

The Company recorded an income tax benefit of $2.1 million for the six months ended March 31, 2019, resulting in an effective tax rate of (4.40%), compared to an income tax expense of $12.2 million, or an effective tax rate of 25.31%, for the six months ended March 31, 2018. The Company’s effective tax rate is lower than the U.S. statutory rate of 21% primarily because of the anticipated effect of investment tax credits during fiscal year 2019. The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

37

The table below compares the income tax expense components for the periods presented.

Six Months Ended March 31,	2019			2018
(Dollars in Thousands)
Provision at statutory rate	$	9,541		$	11,857
Tax-exempt income	(1,824		)	(3,728		)
State income taxes	2,143			2,003
Interim period effective rate adjustment	(3,968		)	(1,277		)
Tax credit investments, net - federal	(9,568		)	—
Tax Reform rate adjustment	—			3,635
IRC 162(m) nondeductible compensation	1,561			—
Other, net	29			(258		)
Income tax expense	$	(2,086	)	$	12,232
Effective tax rate	(4.40		%)	25.31		%

NOTE 11. COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Bank makes various commitments to extend credit that are not reflected in the accompanying Consolidated Financial Statements.

At March 31, 2019 and September 30, 2018, unfunded loan commitments approximated $860.4 million and $748.8 million, respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract.

The Company had no commitments to purchase securities at March 31, 2019 and $1.4 million in commitments to purchase securities at September 30, 2018. The Company had no commitments to sell securities at March 31, 2019 or September 30, 2018.

The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. At March 31, 2019 and at September 30, 2018, the Company had an allowance for credit losses on off-balance sheet credit exposures of $0.1 million. This amount is maintained as a separate liability account within other liabilities.

Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments.  In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.

As disclosed in Note 3. Acquisitions, the Company continues to monitor the bankruptcy proceedings and federal investigations of DC Solar. As of the date of the filing of this quarterly report, the Company has not accrued for any additional loss contingencies related to DC Solar as of March 31, 2019.

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Legal Proceedings

The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both Inter National Bank ("INB") and MetaBank. According to the Petition, NetSpend has informed INB that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of its position. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs were wound down, there were two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4.0 million. The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

On February 9, 2018, the Bank’s AFS/IBEX division filed a lawsuit in the United States District Court for the Eastern District of New York captioned AFS/IBEX, a division of MetaBank v. Aegis Managing Agency Limited ("AMA"), Aegis Syndicate 1225 (together with AMA, the "Aegis defendants"), CRC Insurance Services, Inc. ("CRC"), and Transportation Underwriters, Inc. The suit was filed against commercial insurance underwriters and brokers that facilitated the issuance of commercial insurance policies to Red Hook Construction Group-II, LLC (“Red Hook”). The Bank’s position is that both CRC and Transportation Underwriters represented to the Bank that, upon cancellation of the insurance policies prior to their stated terms, any unearned premiums would be refunded. The Bank then provided insurance premium financing to Red Hook, and Red Hook executed a written premium finance agreement pursuant to which Red Hook assigned its rights to any unearned premiums to the Bank. After the policies were cancelled, the Aegis defendants failed to return the unearned insurance premiums totaling just over $1.6 million owed to the Bank under the insurance policies and the premium finance agreement. The Bank is seeking recovery of all amounts to which it is entitled at law or equity and intends to vigorously pursue its claims against the defendants.

The Bank was served on December 24, 2018, with a lawsuit captioned The Ohio Valley Bank Company v. MetaBank dba Refund Advantage, Case No. 18 CV 134 in the Court of Common Pleas, Gallia County, Ohio. This action alleges that MetaBank breached a contract with The Ohio Valley Bank Company by terminating the contract before the term expired, resulting in over $3.0 million in damages. The Bank intends to vigorously defend this claim. The Company has established an accrual for this related claim.

From time to time, the Company or its subsidiaries are subject to certain legal proceedings and claims in the ordinary course of business. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position or its results of operations, legal proceedings are inherently uncertain and unfavorable resolution of some or all of these matters could, individually or in the aggregate, have a material adverse effect on the Company’s and its subsidiaries’ respective businesses, financial condition or results of operations.

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NOTE 12. REVENUE FROM CONTRACTS WITH CUSTOMERS

On October 1, 2018, the Company adopted Topic 606 on a modified retrospective basis. Prior period amounts have not been adjusted to reflect the adoption of Topic 606 and continue to be reported in accordance with the Company’s historical accounting policies. The impact of the Company’s adoption of Topic 606 was limited to the MPS division within the Payments reporting segment. Upon adoption, Meta recorded a cumulative-effect adjustment that increased retained earnings by $1.5 million, net of tax.

Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Consolidated Financial Statements.

(Dollars in thousands)	Payments				Banking					Corporate Services/Other					Consolidated Company
Three Months Ended March 31,	2019		2018		2019			2018		2019		2018			2019			2018
Net interest income(1)	$	13,607	$	4,933	$	56,271		$	16,120	$	1,472	$	6,352		$	71,350		$	27,405
Noninterest income:
Refund transfer product fees	31,601		33,803		—			—		—		—			31,601			33,803
Tax advance product fees(1)	33,038		33,838		—			—		—		—			33,038			33,838
Card fees	22,960		26,771		92			85		—		—			23,052			26,856
Rental income(1)	—		—		9,890			—		—		—			9,890			—
Loan and lease fees(1)	—		—		925			1,042		—		—			925			1,042
Bank-owned life insurance(1)	—		—		—			—		631		650			631			650
Deposit fees	1,711		879		382			103		—		—			2,093			982
Gain (loss) on sale of securities available-for-sale, net(1)	—		—		—			—		231		(166		)	231			(166		)
Gain on sale of loans and leases(1)	—		—		1,085			—		—		—			1,085			—
Loss on foreclosed real estate(1)	—		—		(200		)	—		—		—			(200		)	—
Other income(1)	442		382		1,774			11		463		21			2,679			414
Total noninterest income	89,752		95,673		13,948			1,241		1,325		505			105,025			97,419
Revenue	$	103,359	$	100,606	$	70,219		$	17,361	$	2,797	$	6,857		$	176,375		$	124,824

⁽¹⁾ These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

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(Dollars in thousands)	Payments				Banking						Corporate Services/Other					Consolidated Company
Six Months Ended March 31,	2019		2018		2019			2018			2019		2018			2019			2018
Net interest income(1)	$	23,007	$	9,602	$	108,063		$	31,717		$	552	$	12,282		$	131,622		$	53,601
Noninterest income:
Refund transfer product fees	31,862		33,995		—			—			—		—			31,862			33,995
Tax advance product fees(1)	34,723		35,785		—			—			—		—			34,723			35,785
Card fees	42,233		51,945		170			158			—		—			42,403			52,103
Rental income(1)	—		—		20,780			—			—		—			20,780			—
Loan and lease fees(1)	—		—		2,173			2,334			—		—			2,173			2,334
Bank-owned life insurance(1)	—		—		—			—			1,273		1,319			1,273			1,319
Deposit fees	3,245		1,607		786			223			—		—			4,031			1,830
Gain (loss) on sale of securities available-for-sale, net(1)	—		—		—			—			209		(1,176		)	209			(1,176		)
Gain on sale of loans and leases(1)	—		—		1,951			—			—		—			1,951			—
Loss on foreclosed real estate(1)	—		—		(185		)	(19		)	—		—			(185		)	(19		)
Other income(1)	515		442		2,542			30			499		44			3,556			516
Total noninterest income	112,578		123,774		28,217			2,726			1,981		187			142,776			126,687
Revenue	$	135,585	$	133,376	$	136,280		$	34,443		$	2,533	$	12,469		$	274,398		$	180,288

⁽¹⁾ These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period, therefore the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities.

Refund Transfer Product Fees

Refund transfer fees are specific to the tax products offered by Refund Advantage and EPS. These fees are for products, services such as payment processing, and product referral commissions. Software partner fees paid and/or incurred are recorded on a net basis. The Company’s obligation for product fees and commissions is satisfied at the time of the product delivery and obligation for payment processing is satisfied at the time of processing. The transaction price for such activity is based upon stand-alone fees within the terms and conditions. As of March 31, 2019, there were no receivables related to refund transfer fees, which reflect earned revenue with unconditional rights to payment for product fee income, while as of September 30, 2018, there were $827,039 of such receivables. All refund transfer fees are recorded within the Payments reporting segment.

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Card Fees

Card fees relate to MPS, retail bank, Refund Advantage and EPS products. These fees are for products and services such as card activation, product support, processing, and servicing. The Company earns these fees based upon the underlying terms and conditions with each cardholder over the contract term. Agreements with the Company’s cardholders are considered daily service contracts as they are not fixed in duration. The Company’s obligation for card activation and product support fees is satisfied at the time of product delivery, while the obligation for processing and servicing is satisfied over the course of each month. The transaction price for such activity is based upon the stand-alone fees within the terms and conditions of the cardholder agreements. Card fee revenue also includes income from sponsorships, associations and networks, and interchange income. Sponsorship income relates to fees charged to the Company’s ATM sponsorship partners, where the obligation is satisfied over the course of each month. Association and network income reflect incentives, performance bonuses and rebates with MasterCard and Visa. The obligation for such income is satisfied at the time when certain thresholds of transaction volume have been met. Interchange income is generated by cardholder activity, and therefore the Company’s obligations are satisfied as activity occurs. The transaction price for such activity is based on underlying rates and activity thresholds within the terms and conditions of the applicable agreements. Card fee revenue also includes breakage revenue. Breakage represents the estimated amount that will not be redeemed by the holder of unregistered, unused prepaid cards for goods or services. Breakage revenue is recognized ratably over the expected customer usage period and is an estimate based on cardholder behavior and breakage rates. Breakage is also impacted by escheatment laws. Card fees are recorded within the Payments and Banking reporting segments.

Deposit Fees

Fees are earned on depository accounts for commercial and consumer customers and include fees for account services, overdraft services, safety deposit box rentals, and event-driven services (i.e. returned checks, ATM surcharge, card replacement, wire transfers, and stop pays). The Company’s obligation for event-driven services is satisfied at the time of the event when the service is delivered, while its obligation for account services is satisfied over the course of each month. The Company’s obligation for overdraft services is satisfied at the time of overdraft. The transaction price for such activity is based upon stand-alone fees within the terms and conditions of the deposit agreements. Deposit fees are recorded within the Payments and Banking reporting segment.

Principal vs Agent

The Payments reporting segment includes principal/agent relationships. Within this segment, MPS relationships are recorded on a gross basis within the income statement, as Meta is the principal in the contract, with the exception of association/network contracts and partner/processer contracts for prepaid cards, which are recorded on a net basis within the income statement as Meta is the agent in these contracts. Also within this segment, Tax service relationships are recorded on a gross basis within the income statement, as Meta is the principal in the contract, with the exception of contracts with software providers and merchants, which are recorded on a net basis within the income statement as Meta is the agent in these contracts.

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NOTE 13. FAIR VALUE MEASUREMENTS

Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement.  It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.

The fair value hierarchy is as follows:

Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs - Valuation is based upon (1) quoted prices for similar instruments in active markets, (2) quoted prices for identical or similar instruments in markets that are not active and (3) model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available.  These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Debt Securities Available for Sale and Equity Securities.  Debt securities available for sale and equity securities are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds and corporate debt securities.  The Company had no Level 3 securities at March 31, 2019 or September 30, 2018.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology, and the third party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third party provider include but are not limited to pricing models that vary based by asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

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The following table summarizes the fair values of debt securities available for sale and equity securities at March 31, 2019 and September 30, 2018, as they are measured at fair value on a recurring basis.

	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	164,103	$	—	$	164,103	$	—
Obligations of states and political subdivisions	11,529		—		11,529		—
Non-bank qualified obligations of states and political subdivisions	621,642		—		621,642		—
Asset-backed securities	284,389		—		284,389		—
Mortgage-backed securities	413,493		—		413,493		—
Total debt securities AFS	1,495,156		—		1,495,156		—
Common equities and mutual funds(1)(2)	$	4,211	$	4,211	$	—	$	—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

	Fair Value At September 30, 2018
	Available For Sale
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	44,337	$	—	$	44,337	$	—
Obligations of states and political subdivisions	16,910		—		16,910		—
Non-bank qualified obligations of states and political subdivisions	1,109,885		—		1,109,885		—
Asset-backed securities	313,028		—		313,028		—
Mortgage-backed securities	364,065		—		364,065		—
Total debt securities AFS	1,848,225		—		1,848,225		—
Common equities and mutual funds(1)	3,800		3,800		—		—
Total securities	$	1,852,025	$	3,800	$	1,848,225	$	—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

The Company did not transfer any AFS debt securities or equity securities between fair value hierarchy categories at March 31, 2019 or September 30, 2018.

Loans and Leases.  The Company does not record loans and leases at fair value on a recurring basis.  If a loan or lease is identified as individually impaired, management then measures impairment in accordance with ASC 310, Receivables. See Note 4 Loans and Leases, Net for further information.

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2019 and September 30, 2018.

	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	1,218	$	—	$	—	$	1,218
Factoring	13		—		—		13
Lease Financing	23		—		—		23
Commercial finance	1,254		—		—		1,254
Total National Lending	1,254		—		—		1,254
Total Impaired Loans and Leases	1,254		—		—		1,254
Foreclosed Assets, net	29,548		—		—		29,548
Total	$	30,802	$	—	$	—	$	30,802

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	Fair Value At September 30, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired loans and leases, net
Asset Based Lending	$	57	$	—	$	—	$	57
Factoring	1,899		—		—		1,899
Lease Financing	2,869		—		—		2,869
Commercial finance	4,825		—		—		4,825
Total National Lending	4,825		—		—		4,825
Total impaired loans and leases	4,825		—		—		4,825
Foreclosed assets, net	31,638		—		—		31,638
Total	$	36,463	$	—	$	—	$	36,463

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at March 31, 2019		Fair Value at September 30, 2018	Valuation Technique	Unobservable Input	Range of Inputs
Impaired loans and leases, net	$	1,254	4,825	Market approach	Appraised values (1)	4.00 - 10.00%
Foreclosed Assets, net	$	29,548	31,638	Market approach	Appraised values (1)	4.00 - 10.00%

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

The following table discloses the Company’s estimated fair value amounts of its financial instruments as of the dates set forth below.  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, 2019 and September 30, 2018, 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.

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The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at March 31, 2019 and September 30, 2018.

	March 31, 2019
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	156,461	$	156,461	$	156,461	$	—	$	—
Debt securities available for sale	1,495,156		1,495,156		—		1,495,156		—
Debt securities held to maturity	154,598		149,164		—		149,164		—
Equity securities (1)	4,211		4,211		4,211		—		—
Total securities	1,653,965		1,648,531		4,211		1,644,320		—
Loans held for sale	59,745		59,745		—		59,745		—
Loans and leases:
Asset based lending	572,210		551,579		—		—		551,579
Factoring	287,955		283,337		—		—		283,337
Lease financing	321,414		320,411		—		—		320,411
Insurance premium finance	307,875		307,732		—		—		307,732
SBA/USDA	77,481		74,407		—		—		74,407
Other commercial finance	98,956		100,038		—		—		100,038
Commercial finance	1,665,891		1,637,504		—		—		1,637,504
Consumer credit products	139,617		138,748		—		—		138,748
Other consumer finance	170,824		166,925		—		—		166,925
Consumer finance	310,441		305,673		—		—		305,673
Tax services	84,824		60,722		—		—		60,722
Warehouse finance	186,697		186,764		—		—		186,764
Total National Lending	2,247,853		2,190,663		—		—		2,190,663
Commercial real estate and operating	869,917		861,524		—		—		861,524
Consumer one to four family real estate and other	257,079		254,642		—		—		254,642
Agricultural real estate and operating	60,167		58,454		—		—		58,454
Total Community Banking	1,187,163		1,174,620		—		—		1,174,620
Total loans and leases	3,435,016		3,365,283		—		—		3,365,283
Federal Home Loan Bank stock	7,436		7,436		—		7,436		—
Accrued interest receivable	20,281		20,281		20,281		—		—
Financial liabilities
Noninterest-bearing demand deposits	3,034,428		3,034,428		3,034,428		—		—
Interest-bearing demand deposits, savings, and money markets	300,033		300,033		300,033		—		—
Certificates of deposits	154,401		153,951		—		153,951		—
Wholesale non-maturing deposits	207,795		207,795		207,795		—		—
Wholesale certificates of deposits	1,273,650		1,272,291		—		1,272,291		—
Total deposits	4,970,307		4,968,498		3,542,256		1,426,242		—
Securities sold under agreements to repurchase	2,804		2,804		—		2,804		—
Capital leases	1,996		1,996		—		1,996		—
Trust preferred securities	13,661		13,878		—		13,878		—
Subordinated debentures	73,566		75,188		—		75,188		—
Other borrowings	19,357		19,162		—		19,162		—
Accrued interest payable	9,239		9,239		9,239		—		—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

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	September 30, 2018
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	99,977	$	99,977	$	99,977	$	—	$	—
Securities available for sale	1,852,025		1,852,025		3,800		1,848,225		—
Securities held to maturity	172,154		160,974		—		160,974		—
Total securities	2,024,179		2,012,999		3,800		2,009,199		—
Loans held for sale	15,606		15,606		—		15,606		—
Loans and leases:
Asset based lending	477,917		477,471		—		—		477,471
Factoring	284,221		283,424		—		—		283,424
Lease financing	265,315		264,679		—		—		264,679
Insurance premium finance	337,877		337,212		—		—		337,212
SBA/USDA	59,374		61,072		—		—		61,072
Other commercial finance	85,145		83,111		—		—		83,111
Commercial finance	1,509,849		1,506,969		—		—		1,506,969
Consumer credit products	80,605		80,633		—		—		80,633
Other consumer finance	189,756		197,320		—		—		197,320
Consumer finance	270,361		277,953		—		—		277,953
Tax services	1,073		1,073		—		—		1,073
Warehouse finance	65,000		64,978		—		—		64,978
Total National Lending	1,846,283		1,850,973		—		—		1,850,973
Commercial real estate and operating	790,890		773,203		—		—		773,203
Consumer one to four family real estate and other	247,318		244,730		—		—		244,730
Agricultural real estate and operating	60,498		58,849		—		—		58,849
Total Community Banking	1,098,706		1,076,782		—		—		1,076,782
Total loans and leases	2,944,989		2,927,755		—		—		2,927,755
Federal Home Loan Bank stock	23,400		23,400		—		23,400		—
Accrued interest receivable	22,016		22,016		22,016		—		—
Financial liabilities
Noninterest-bearing demand deposits	2,405,274		2,405,274		2,405,274		—		—
Interest-bearing demand deposits, savings, and money markets	218,347		218,347		218,347		—		—
Certificates of deposits	276,180		273,800		—		273,800		—
Wholesale non-maturing deposits	94,384		94,384		94,384		—		—
Wholesale certificates of deposits	1,436,802		1,432,146		—		1,432,146		—
Total deposits	4,430,987		4,423,951		2,718,005		1,705,946		—
Federal funds purchased	422,000		422,000		422,000		—		—
Securities sold under agreements to repurchase	3,694		3,694		—		3,694		—
Capital leases	1,876		1,876		—		1,876		—
Trust preferred securities	13,661		13,866		—		13,866		—
Subordinated debentures	73,491		75,563		—		75,563		—
Accrued interest payable	7,794		7,794		7,794		—		—

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The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at March 31, 2019 and September 30, 2018.

CASH AND CASH EQUIVALENTS

The carrying amount of cash and short-term investments is assumed to approximate the fair value.

DEBT SECURITIES AVAILABLE FOR SALE AND EQUITY SECURITIES

Debt securities available for sale and equity securities are recorded at fair value on a recurring basis. Fair values for these investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities.

LOANS HELD FOR SALE

The carrying amount of loans held for sale is assumed to approximate the fair value.

LOANS AND LEASES, NET

Upon adoption of ASU 2016-01, the fair value of loans and leases were estimated using an exit price methodology. The exit price estimation of fair value is based on the present value of expected cash flows, which are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk. In comparison, loan and lease fair values as of September 30, 2018 were estimated on an entrance price methodology, which discounts future cash flows using the then-current rates at which a similar loan would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of non-impaired loans and leases as of March 31, 2019 and September 30, 2018 are not comparable.

FEDERAL HOME LOAN BANK (“FHLB”) STOCK

The fair value of FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.

ACCRUED INTEREST RECEIVABLE

The carrying amount of accrued interest receivable is assumed to approximate the fair value.

DEPOSITS

The carrying values of noninterest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value since deposits are immediately withdrawable without penalty. The fair value of time certificate deposits and wholesale certificate deposits are estimated using a discounted cash flows calculation that applies the FHLB Des Moines curve to aggregated expected maturities of time deposits. In accordance with Subtopic 825-10, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under Subtopic 825-10.

ADVANCES FROM FHLB

The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.

FEDERAL FUNDS PURCHASED

The carrying amount of federal funds purchased is assumed to approximate the fair value.

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, SUBORDINATED DEBENTURES AND OTHER BORROWINGS

The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.

ACCRUED INTEREST PAYABLE

The carrying amount of accrued interest payable is assumed to approximate the fair value.

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LIMITATIONS

Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument.  Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments.  These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time.  Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision.  Changes in assumptions as well as tax considerations could significantly affect the estimates.  Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.

NOTE 14. SEGMENT REPORTING

An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other. The Meta Payment Systems and Tax Services divisions are reported in the Payments segment. The Community Banking, Commercial Finance and Consumer Finance divisions are reported in the Banking segment. Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in the Corporate Services/Other segment.

The following tables present segment data for the Company for the three and six months ended March 31, 2019 and 2018, respectively.

	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2019
Net interest income (expense)	$	13,607	$	56,271	$	1,472		$	71,350
Provision for loan and lease losses	22,474		10,844		—			33,318
Noninterest income	89,752		13,948		1,325			105,025
Noninterest expense	32,178		42,522		35,554			110,254
Income (loss) before income tax expense (benefit)	48,707		16,853		(32,757		)	32,803
Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307

	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2019
Net interest income (expense)	$	23,007	$	108,063	$	552		$	131,622
Provision for loan and lease losses	23,969		18,448		—			42,417
Noninterest income	112,578		28,217		1,981			142,776
Noninterest expense	53,539		76,365		54,645			184,549
Income (loss) before income tax expense (benefit)	58,077		41,467		(52,112		)	47,432
Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307

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	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2018
Net interest income	$	4,933	$	16,120	$	6,352		$	27,405
Provision for loan losses	18,129		214		—			18,343
Noninterest income	95,673		1,241		505			97,419
Noninterest expense	44,841		6,984		16,672			68,497
Income (loss) before income tax expense (benefit)	37,636		10,163		(9,815		)	37,984
Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2018
Net interest income	$	9,602	$	31,717	$	12,282		$	53,601
Provision for loan losses	19,146		265		—			19,411
Noninterest income	123,774		2,726		187			126,687
Noninterest expense	71,796		13,552		27,191			112,539
Income (loss) before income tax expense (benefit)	42,434		20,626		(14,722		)	48,338
Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

NOTE 15. SUBSEQUENT EVENTS

Management has evaluated subsequent events that occurred after March 31, 2019. During this period, up to the filing date, management did not identify any material subsequent events that would require recognition or disclosure in our consolidated financial statements as of or for the quarter ended March 31, 2019.

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Item 2.    Management’s Discussion and Analysis of Financial Condition and Results of Operations.

META FINANCIAL GROUP, INC®.

AND SUBSIDIARIES

FORWARD LOOKING STATEMENTS

Meta Financial Group, Inc.®, (“Meta” or “the Company” or “us”) and its wholly-owned subsidiary, MetaBank® (the “Bank” or “MetaBank”), may from time to time make written or oral “forward-looking statements,” including statements contained in this Quarterly Report on Form 10-Q, in the Company's other filings with the Securities and Exchange Commission (“SEC”), in its reports to stockholders, and in other communications by the Company and the Bank, which are made in good faith by the Company pursuant to the “safe harbor” provisions of the Private Securities Litigation Reform Act of 1995.

You can identify forward-looking statements by words such as “may,” “hope,” “will,” “should,” “expect,” “plan,” “anticipate,” “intend,” “believe,” “estimate,” “predict,” “potential,” “continue,” “could,” “future,” or the negative of those terms, or other words of similar meaning or similar expressions. You should carefully read statements that contain these words because they discuss our future expectations or state other “forward-looking” information. These forward-looking statements are based on information currently available to us and assumptions about future events, and include statements with respect to the Company’s beliefs, expectations, estimates, and intentions, which are subject to significant risks and uncertainties, and are subject to change based on various factors, some of which are beyond the Company’s control. Such risks, uncertainties and other factors may cause our actual growth, results of operations, financial condition, cash flows, performance and business prospects and opportunities to differ materially from those expressed in, or implied by, these forward-looking statements. Such statements address, among others, the following subjects: future operating results; customer retention; loan and other product demand; important components of the Company's statements of financial condition and operations; growth and expansion; new products and services, such as those offered by MetaBank or the Company's Payments divisions (which include Meta Payment Systems, Refund Advantage, EPS Financial and Specialty Consumer Services); credit quality and adequacy of reserves; technology; and the Company's employees. The following factors, among others, could cause the Company's financial performance and results of operations to differ materially from the expectations, estimates, and intentions expressed in such forward-looking statements: maintaining our executive management team; the expected growth opportunities, beneficial synergies and/or operating efficiencies from the Crestmark acquisition may not be fully realized or may take longer to realize than expected; unanticipated or unknown losses and liabilities may be incurred by the Company following the Crestmark acquisition; the costs, risks and effects on the Company of the ongoing federal investigation and bankruptcy proceedings involving DC Solar Solutions, Inc., DC Solar Distribution, Inc., and their affiliates, including the potential financial impact of those matters on the net book value of Company assets leased to DC Solar Distribution and the Company’s ability to recognize certain investment tax credits associated with such assets, and the results of the Company’s review of its due diligence processes with respect to the Company’s alternative energy assets; factors relating to the Company’s recently announced share repurchase program; actual changes in interest rates and the Fed Funds rate; additional changes in tax laws; the strength of the United States' economy, in general, and the strength of the local economies in which the Company conducts operations; risks relating to the recent U.S. government shutdown and any potential future government shutdown, including any adverse impact on our ability to originate or sell SBA/USDA loans and any delay by the Internal Revenue Service in processing taxpayer refunds, thereby increasing the cost to us of our refund advance loans; the effects of, and changes in, trade, monetary, and fiscal policies and laws, including interest rate policies of the Board of Governors of the Federal Reserve System (the “Federal Reserve”), as well as efforts of the United States Congress and the United States Treasury in conjunction with bank regulatory agencies to stimulate the economy and protect the financial system; inflation, market, and monetary fluctuations; the timely and efficient development of, and acceptance of, new products and services offered by the Company or its strategic partners, as well as risks (including reputational and litigation) attendant thereto, and the perceived overall value of these products and services by users; the risks of dealing with or utilizing third parties, including, in connection with the Company’s refund advance business, the risk of reduced volume of refund advance loans as a result of reduced customer demand for or acceptance of usage of Meta’s strategic partners’ refund advance products; any actions which may be initiated by our regulators in the future; the impact of changes in financial services laws and regulations, including, but not limited to, laws and regulations relating to the tax refund industry and the insurance premium finance industry; our relationship with our primary regulators, the Office of the Comptroller of the Currency and the Federal Reserve, as well as the Federal Deposit Insurance Corporation, which insures MetaBank’s deposit accounts up to applicable limits; technological changes, including, but not limited to, the protection of electronic files or databases; acquisitions; litigation risk, in general, including, but not limited to, those risks involving MetaBank's divisions; the growth of the Company’s business, as well as expenses related thereto; continued maintenance by MetaBank of its status as a well-capitalized institution, particularly in light of our growing deposit base, a portion of which has been characterized as “brokered;” changes in consumer spending and saving habits; and the success of the Company at maintaining its high quality asset level and managing and collecting assets of borrowers in default should problem assets increase.

The foregoing list of factors is not exclusive.  We caution you not to place undue reliance on these forward-looking statements. The forward-looking statements included in this Quarterly Report speak only as of the date hereof.  All subsequent written and oral forward-looking statements attributable to us or any person acting on our behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this section.  Additional discussions of factors affecting the Company’s business and prospects are included under the caption "Risk Factors" and in other sections of the Company’s Annual Report on Form 10-K for the fiscal year ended September 30, 2018 and in other filings made with the SEC.  The Company expressly disclaims any intent or obligation to update any forward-looking statements, whether written or oral, that may be made from time to time by or on behalf of the Company or its subsidiaries, whether as a result of new information, changed circumstances or future events or for any other reason.

51

GENERAL

The Company, a registered unitary savings and loan holding company, is a Delaware corporation, the principal assets of which are all the issued and outstanding shares of the Bank, a federal savings bank.  Unless the context otherwise requires, references herein to the Company include Meta and the Bank, and all direct or indirect subsidiaries of Meta on a consolidated basis.

The Company’s common stock trades on the NASDAQ Global Select Market under the symbol “CASH.”

The following discussion focuses on the consolidated financial condition of the Company at March 31, 2019, compared to September 30, 2018, and the consolidated results of operations for the three and six months ended March 31, 2019 and 2018.  This discussion should be read in conjunction with the Company’s consolidated financial statements, and notes thereto, for the year ended September 30, 2018 and the related management's discussion and analysis of financial condition and results of operations contained in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018.

EXECUTIVE SUMMARY

In January 2019, the Company announced three key elements to its near-term plan that management expects will enhance long-term value for shareholders. The three key initiatives within the plan are as follows:

1) Increase the percentage of balance sheet funding from core deposits.

2) Optimize the earning asset mix of the balance sheet.

3) Improve operating efficiencies.

The Company recorded net income of $32.1 million, or $0.81 per diluted share, for the quarter ended March 31, 2019, comparing favorably to net income of $31.4 million, or $1.08 per diluted share, that was recorded for the fiscal 2018 second quarter. Total revenue for the fiscal 2019second quarter was $176.4 million, compared to $124.8 million for the same quarter in fiscal 2018, an increase of 41%. The improvement in revenue and net income was driven primarily by the Company's improved earning asset mix in connection with the acquisition of Crestmark in the fourth quarter of fiscal 2018.

During the second quarter of fiscal 2019, the peak period for the Company's tax services division, the Company recorded total tax services product revenue, inclusive of interest income from the launch of a new interest-bearing refund advance product, of $72.8 million, an increase of 6% compared to the second quarter of fiscal 2018. The Company recorded $22.5 million in loan loss provision expense related to $1.49 billion in tax services loans originated during the fiscal second quarter of 2019. Tax services product income, net of losses and direct product expenses, increased 5% when comparing the fiscal 2019 second quarter to the same period of the prior fiscal year.

The continued growth in loans and leases during the second quarter of fiscal 2019, along with the continued optimization of the earning asset mix of the balance sheet, led to net interest income of $71.4 million and net interest margin of 5.06% and net interest margin, tax-equivalent ("NIM, TE") of 5.18%. The Company's average gross loans and leases increased by $1.9 billion, or 100%, while average noninterest-bearing deposits increased by $296.8 million, or 11%, when compared to the same period in fiscal 2018. Management anticipates that NIM, TE will continue to increase as the loan and lease portfolio continues to grow along with the Company's noninterest-bearing checking deposits.

Noninterest income for the quarter ended March 31, 2019 increased to $105.0 million. Contributing to the increase were increases in rental income, deposit fees, other income, and gain on sale of loans and leases. For the quarter ended March 31, 2019, noninterest expense was $110.3 million. The increase in noninterest expense over the prior year fiscal second quarter was primarily due to the addition of the Crestmark Division as a result of the Crestmark acquisition, which was not present in the comparable quarter in the prior fiscal year. Within compensation and benefits expense, the Company also recorded during the quarter ended March 31, 2019 the previously disclosed $6.1 million of pre-tax executive transition agreement costs.

52

During the second quarter of fiscal 2019, the Company became aware that DC Solar Solutions, Inc., DC Solar Distribution, Inc. and their affiliates filed for bankruptcy and the entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. Due to the facts and circumstances surrounding these DC Solar matters, the Company recognized a $6.6 million after-tax net non-cash charge to earnings and recorded a $2.0 million increase to goodwill. See Note 3 to the Condensed Consolidated Financial Statements included in this quarterly report for further discussion.

Also, during the second quarter of fiscal 2019, the Company announced that its Board of Directors authorized a share repurchase program to repurchase up to 2,000,000 shares of the Company's outstanding common stock. The program will be effective May 1, 2019 through September 30, 2021.

FINANCIAL CONDITION

At March 31, 2019, the Company’s total assets increased by $215.0 million, or 4%, to $6.05 billion compared to $5.84 billion at September 30, 2018, primarily due to an increase in loans and leases, while partially being offset by a decrease in the investment portfolio.

Total cash and cash equivalents was $156.5 million at March 31, 2019, an increase of $56.5 million, or 56%, from $100.0 millionat September 30, 2018. The increase was primarily the result of the Company's increased balances related to tax season activity. The Company maintains its cash investments primarily in interest-bearing overnight deposits with the FHLB of Des Moines and the Federal Reserve Bank.

The total investment portfolio decreased $370.2 million, or 18%, to $1.65 billion at March 31, 2019, compared to $2.02 billion at September 30, 2018, as maturities, sales, and principal pay downs exceeded purchases. The Company’s portfolio of securities customarily consists primarily of MBS, which have expected lives much shorter than the stated final maturity, non-bank qualified obligations of states and political subdivisions (“NBQ”), which mature in approximately 15 years or less, and other tax exempt municipal mortgage related pass through securities which have average lives much shorter than their stated final maturities. All MBS held by the Company at March 31, 2019 were issued by a U.S. Government agency or instrumentality. Of the total MBS, $413.5 million, at fair value, were classified as available for sale, and $7.6 million, at cost, were classified as held to maturity. Of the total investment securities, $1.08 billion, at fair value, were classified as available for sale and $147.0 million, at cost, were classified as held to maturity. During the six month period ended March 31, 2019, the Company purchased $222.4 million of investment securities available for sale and no investment securities held to maturity or MBS securities.

The Company’s portfolio of gross loans and leases increased by $490.0 million, or 17%, to $3.44 billion at March 31, 2019, from $2.94 billionat September 30, 2018.

National lending loans and leases increased $401.6 million, or 22% to $2.25 billion at March 31, 2019 compared to September 30, 2018. Within the national lending portfolios, commercial finance loans and leases increased $156.0 million, warehouse finance portfolio increased $121.7 million, tax services loans increased $83.8 million, and the consumer finance portfolio increased $40.1 million at March 31, 2019 compared to September 30, 2018. Community banking loans grew $88.5 million, or 8%, at March 31, 2019 compared to September 30, 2018, primarily due to growth in commercial real estate loans.

As of March 31, 2019, the remaining balance of acquired loans and leases from the Crestmark acquisition was $591.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $8.7 million and $4.5 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.8 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $11.4 million and $5.5 million, respectively.

Through the Bank, the Company owns stock in the FHLB due to the Bank’s membership and participation in this banking

system. The FHLB requires a level of stock investment based on a pre-determined formula. The Company’s investment in such stock decreased $16.0 million, or 68%, to $7.4 million at March 31, 2019, from $23.4 million at September 30, 2018. The decrease in FHLB stock directly correlates with lower short-term borrowings balances at March 31, 2019 compared to September 30, 2018.

53

Total end-of-period deposits increased $539.3 million, or 12%, at March 31, 2019 to $4.97 billion from $4.43 billion at September 30, 2018, primarily related to increases of $629.2 million in noninterest-bearing deposits and $71.9 million in interest-bearing checking deposits. The increase in total deposits was partially offset by decreases of $121.8 million in certificates of deposit and $49.7 million in wholesale deposits.

The average balance of total deposits and interest-bearing liabilities was $5.49 billion for the six month period ended March 31, 2019, compared to $3.89 billion for the same period of the prior fiscal year. The average balance of noninterest-bearing deposits for the six month period ended March 31, 2019 increased by $228.1 million, or 9%, to $2.72 billion compared to the same period in the prior year.

The Company's total borrowings decreased $403.3 million, or 78%, from $514.7 million at September 30, 2018 to $111.4 million at March 31, 2019, primarily due to a decrease in short-term borrowings. The Company’s short-term borrowings fluctuate on a daily basis due to the nature of a portion of its noninterest-bearing deposit base, primarily related to payroll processing timing with a higher volume of short-term borrowings on Monday and Tuesday, which are typically paid down throughout the week. This predictable fluctuation may be augmented near a month-end by a prefunding of certain programs. The Company also has an available no fee line of credit with JP Morgan of $25.0 million with no funds advanced at March 31, 2019.

At March 31, 2019, the Company’s stockholders’ equity totaled $823.7 million, an increase of $76.0 million, from $747.7 million at September 30, 2018.  The increase was attributable to net earnings, an increase in additional paid-in capital and lower losses in accumulated other comprehensive income, partially offset by a higher outstanding balance in treasury stock. At March 31, 2019, the Bank continued to exceed all regulatory requirements for classification as a well‑capitalized institution.  See “Liquidity and Capital Resources” for further information.

Non-performing Assets and Allowance for Loan and Lease Losses

Generally, when a loan or lease becomes delinquent 90 days or more or when the collection of principal or interest becomes doubtful, the Company will place the loan or lease on a non-accrual status and, as a result, previously accrued interest income on the loan or lease is reversed against current income. The loan or lease will generally remain on a non-accrual status until six months of good payment history has been established or management believes the financial status of the borrower has been significantly restored. Certain relationships in the table below are over 90 days past due and still accruing. The Company considers these relationships as being in the process of collection. Insurance premium finance loans, consumer finance and tax services loans are generally not placed on non-accrual status, but are instead written off when the collection of principal and interest become doubtful.

Loans and leases, or portions thereof, are charged off when collection of principal becomes doubtful. Generally, this is associated with a delay or shortfall in payments of greater than 210 days for insurance premium finance, 180 days for tax and other specialty lending loans, 120 days for consumer credit products and 90 days for other loans. Action is taken to charge off ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally considered impaired.

The Company believes that the level of allowance for loan and lease losses at March 31, 2019 was appropriate and reflected probable losses related to these loans and leases; however, there can be no assurance that all loans and leases will be fully collectible or that the present level of the allowance will be adequate in the future. See “Allowance for Loan and Lease Losses” below.

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The table below sets forth the amounts and categories of non-performing assets in the Company’s portfolio as of the dates set forth below. Foreclosed assets include assets acquired in settlement of loans.

	Non-Performing Assets As Of
	March 31, 2019			September 30, 2018
	(Dollars in Thousands)
Non-performing loans and leases
Non-accruing loans and leases:
Asset based lending	$	266		$	—
Factoring	716			—
Lease financing	1,802			2,864
Commercial finance	2,784			2,864
Total National Lending	2,784			2,864
Consumer one-to-four family real estate and other	76			—
Total Community Banking	76			—
Total	2,860			2,864
Accruing loans and leases delinquent 90 days or more:
Asset based lending	—			94
Lease financing	645			726
Insurance premium finance	1,640			2,981
Commercial finance	2,285			3,801
Consumer credit products	420			147
Other consumer finance	1,853			2,237
Consumer finance	2,273			2,384
Tax services	—			1,073
Total National Lending	4,558			7,258
Consumer one-to-four family real estate and other	—			79
Agricultural real estate and operating	2,200			—
Total Community Banking	2,200			79
Total	6,758			7,337
Total non-performing loans and leases	9,618			10,201
Other assets
Non-performing operating leases	1,685			—
Foreclosed and repossessed assets:
Commercial finance	1,426			1,626
Consumer one-to-four family real estate and other	—			90
Agricultural real estate and operating	28,122			29,922
Total	29,548			31,638
Total other assets	31,233			31,638
Total non-performing assets	$	40,851		$	41,839
Total as a percentage of total assets	0.68		%	0.72		%

At March 31, 2019, non-performing loans and leases totaled $9.6 million, representing 0.28% of total loans and leases, compared to $10.2 million, or 0.35% of total loans and leases at September 30, 2018.

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Classified Assets. Federal regulations provide for the classification of loans, leases, and other assets such as debt and equity securities considered by our primary regulator, the OCC, to be of lesser quality as “substandard,” “doubtful” or “loss,” with each such classification dependent on the facts and circumstances surrounding the assets in question. An asset is considered “substandard” if it is inadequately protected by the current net worth and paying capacity of the obligor or of the collateral pledged, if any. “Substandard” assets include those characterized by the “distinct possibility” that the Bank will sustain “some loss” if the deficiencies are not corrected. Assets classified as “doubtful” have all of the weaknesses inherent in those classified “substandard,” with the added characteristic that the weaknesses present make “collection or liquidation in full,” on the basis of currently existing facts, conditions and values, “highly questionable and improbable.” Assets classified as “loss” are those considered “uncollectible” and of such minimal value that their continuance as assets without the establishment of a specific loss reserve is not warranted.

General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When assets are classified as “loss,” the Bank is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge off such amount. The Bank’s determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.

On the basis of management’s review of its loans, leases, and other assets, at March 31, 2019, the Company had classified $23.6 million of its assets as substandard and did not classify any assets as doubtful or loss. At September 30, 2018, the Company classified $24.6 million of its assets as substandard and did not classify any assets as doubtful or loss.

Allowance for Loan and Lease Losses. The allowance for loan and lease losses is established through a provision for loan and lease losses based on management’s evaluation of the risk inherent in its loan and lease portfolio and changes in the nature and volume of its loan and lease activity, including those loans and leases that are being specifically monitored by management. Such evaluation, which includes a review of loans and leases for which full collectability may not be reasonably assured, includes consideration of, among other matters, the estimated fair value of the underlying collateral, economic conditions, historical loan and lease loss experience and other factors that warrant recognition in providing for an appropriate loan and lease loss allowance.

Management closely monitors economic developments both regionally and nationwide, and considers these factors when assessing the appropriateness of its allowance for loan and lease losses. The current economic environment continues to show signs of stability and improvement in the Bank’s markets. The Bank’s average loss rates over the past three years were low relative to industry averages for such years, offset, in the case of fiscal 2016, with a higher agricultural loss rate driven by the charge-off of one relationship. The Bank does not believe it is likely these low loss conditions will continue indefinitely. Each loan and lease segment is evaluated using both historical loss factors as well as other qualitative factors, in order to determine the amount of risk the Company believes exists within that segment.

Management believes that, based on a detailed review of the loan and lease portfolio, historic loan and lease losses, current economic conditions, the size of the loan and lease portfolio and other factors, the level of the allowance for loan and lease losses at March 31, 2019 reflected an appropriate allowance against probable losses from the lending portfolio. Although the Company maintains its allowance for loan and lease losses at a level it considers to be appropriate, investors and others are cautioned that there can be no assurance that future losses will not exceed estimated amounts, or that additional provisions for loan and lease losses will not be required in future periods. In addition, the Company’s determination of the allowance for loan and lease losses is subject to review by the OCC, which can require the establishment of additional general or specific allowances.

At March 31, 2019, the Company had established an allowance for loan and lease losses totaling $48.7 million, compared to $13.0 million at September 30, 2018. The increase in the Company's allowance for loan and lease losses was driven primarily by increases in the allowance of $24.1 million in tax services loans, $7.8 million in the commercial finance portfolio, and $2.8 million in consumer finance loans. The change in the tax services portfolio was driven by additional provision expense related to loan originations by the Company's tax services division. Growth in the commercial finance portfolio was largely attributable to the Crestmark division while the increase in consumer finance is related to the Company now taking on all of the risk of the student loan portfolio.

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The Company affirms its previously stated estimates that, within its consumer credit products portfolio, net cumulative program loan losses would need to be between 15% to 20% for the current prime program and between 25% to 30% for the current non-prime program in order for the 1% allowance for loan losses for its current consumer loan programs not to be adequate.  Expected cumulative net loss rates continue to be estimated to be under 8% for the prime program and under 10% for the non-prime program. Program loss rates are dependent on curvature of the loss curve. A quicker, or steeper curve, may impact these rates. Current curvature is based on historical or like-program statistics. In constructing its contracts with its current partners, the Company instituted the ability to suspend or terminate any new originations if net cumulative loss rates exceed certain levels. These suspension or termination loss rates are set well below the estimated net cumulative loss rate levels which would lead to the inadequacy of the 1% allowance for loan losses of the Company's consumer credit products portfolio.

CRITICAL ACCOUNTING POLICIES AND ESTIMATES

The Company’s financial statements are prepared in accordance with GAAP. The financial information contained within these financial statements is, to a significant extent, based on approximate measures of the financial effects of transactions and events that have already occurred. Management has identified its critical accounting policies, which are those policies that, in management's view, are most important in the portrayal of our financial condition and results of operations, and include those for the allowance for loan and lease losses, goodwill and identifiable intangible assets. These policies involve complex and subjective decisions and assessments. Some of these estimates may be uncertain at the time they are made, could change from period to period, and could have a material impact on the financial statements. A discussion of the Company’s critical accounting policies and estimates can be found in the Company's Annual Report on Form 10-K for the year ended September 30, 2018. There were no significant changes to these critical accounting policies and estimates during the first six months of fiscal year 2019.

RESULTS OF OPERATIONS

General. The Company recorded net income of $32.1 million, or $0.81 per diluted share, for the three months ended March 31, 2019, compared to net income of $31.4 million, or $1.08 per diluted share, for the three months ended March 31, 2018. Total revenue for the fiscal 2019 second quarter was $176.4 million, compared to $124.8 million for the same quarter in fiscal 2018, an increase of $51.5 million, or 41%. The increase in net income and revenue was primarily due to the improvement in net interest income, attributable to the acquisition of Crestmark in the fourth quarter of fiscal 2018, along with an enhanced interest earnings asset mix.

The Company recorded net income of $47.5 million, or $1.20 per diluted share, for the six months ended March 31, 2019, compared to $36.1 million, or $1.24 per diluted share, for the same period in fiscal year 2018. Total revenue for the six months ended March 31, 2019 was $274.4 million, compared to $180.3 million for the same period of the prior year, an increase of $94.1 million, or 52%.

Net Interest Income.  Net interest income for the fiscal 2019second quarter increased by $43.9 million, or 160%, to $71.4 million from $27.4 million for the same quarter in 2018, primarily due to growth in loan and lease balances, expansion in net interest margin, and an increase in tax services interest income of $7.4 million, due in large part to the launch of a new interest-bearing refund advance product. The quarterly average outstanding balance of loans and leases as a percentage of interest-earning assets for the quarter ended March 31, 2019 increased to 65%, from 44% for the quarter ended March 31, 2018, while the quarterly average balance of total investments as a percentage of interest-earning assets decreased to 30% from 53% over that same period.

For the six months ended March 31, 2019, net interest income was $131.6 million compared to $53.6 million for the same period in the prior year. This increase was primarily due to an enhanced interest-earning asset mix related to the acquired loans and leases in the Crestmark division, along with continued growth in the National Lending and Community Banking loan and lease portfolios.

Net interest margin ("NIM") was 5.06% in the fiscal 2019 second quarter, an increase of 245 basis points from 2.61% in the fiscal 2018 second quarter. NIM,TE was 5.18% in the fiscal 2019second quarter, an increase of 229 basis points from 2.89%in the fiscal 2018 second quarter. The increases in NIM and NIM, TE in the fiscal 2019 second quarter, compared to the same period of the prior year, were primarily attributable to higher net loan and lease yields attained through the Crestmark division.

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For the six months ended March 31, 2019, NIM was 4.84%, increasing 216 basis points from 2.68% during the comparable prior year period. NIM, TE for the six months ended March 31, 2019 was 4.98%, an increase of 201 basis points for the same period of the prior year.

The overall reported tax equivalent yield (“TEY”) on average earning assets increased by 292 basis points to 6.38% when comparing the fiscal 2019second quarter to the same period of the prior fiscal year. The improvement was driven primarily by the Company's improved earning asset mix, which reflects increased balances in the national lending portfolio and the launch of a new interest-bearing refund advance product. The fiscal 2019second quarter TEY on the securities portfolio increased by 18 basis points to 3.36% compared to the same period of the prior year TEY of 3.18%.

The Company’s average interest-earning assets for the fiscal 2019second quarter increased by $1.47 billion, or 35%, to $5.72 billion, from the comparable quarter in 2018. The increase was primarily attributable to growth in the Company's loan and lease portfolio of $1.86 billion, of which $1.67 billion was related to an increase in national lending loans and leases and $190.2 million was related to community banking loans. This increase was partially offset by a decrease in total investment securities of $534.0 million, which decreased as the Company continued to utilize sales of securities and cash flow from its amortizing securities portfolio to fund loan growth.

The Company’s average balance of total deposits and interest-bearing liabilities was $5.86 billion for the three-month period ended March 31, 2019, compared to $4.17 billion for the same period in the prior year, representing an increase of 41%. This increase was primarily due to increases in average wholesale deposits of $1.60 billion, average noninterest-bearing deposits of $296.8 million, average interest-bearing checking of $47.8 million, and average time deposits of $29.5 million, partially offset by a decrease in average balance of total borrowings of $286.4 million.

Overall, the Company's cost of funds for all deposits and borrowings averaged 1.17% during the fiscal 2019second quarter, compared to 0.58% for the 2018 second fiscal quarter. This increase was primarily due to a rise in short-term interest rates affecting overnight borrowing rates, other wholesale funding, and the interest-bearing time deposits acquired by the Company in connection with the Crestmark acquisition in the fourth quarter of fiscal 2018. The Company's overall cost of deposits was 1.06%in the 2019 fiscal second quarter, compared to 0.33% in the same quarter of 2018.

The following tables present, for the periods indicated, the Company’s total dollar amount of interest income from average interest-earning assets and the resulting yields, as well as the interest expense on average interest-bearing liabilities, expressed both in dollars and rates.  Tax-equivalent adjustments have been made in yield on interest-bearing assets and net interest margin.  Non-accruing loans and leases have been included in the table as loans carrying a zero yield.

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Three Months Ended March 31,	2019						2018
(Dollars in Thousands)	Average Outstanding Balance		Interest Earned / Paid		Yield / Rate(1)		Average Outstanding Balance		Interest Earned / Paid		Yield / Rate(2)
Interest-earning assets:
Cash & fed funds sold	$	281,069	$	1,914	2.76	%	$	132,355	$	722	2.21	%
Mortgage-backed securities	374,096		2,861		3.10	%	642,164		4,047		2.56	%
Tax exempt investment securities	926,156		6,138		3.40	%	1,431,974		9,001		3.38	%
Asset-backed securities	285,783		2,677		3.80	%	112,301		1,220		4.41	%
Other investment securities	142,452		1,034		2.95	%	76,081		537		2.86	%
Total investments	1,728,487		12,710		3.36	%	2,262,520		14,805		3.18	%
Total commercial finance	1,649,973		41,954		10.31	%	249,320		3,009		4.90	%
Total consumer finance	327,441		7,289		9.03	%	197,134		3,218		6.62	%
Total tax services	369,331		8,204		9.01	%	416,625		833		0.81	%
Total warehouse finance	181,781		2,789		6.22	%	—		—		—	%
National Lending loans and leases	2,528,526		60,236		9.66	%	863,079		7,060		3.32	%
Community Banking loans	1,181,294		13,434		4.61	%	991,089		10,784		4.41	%
Total loans and leases	3,709,820		73,670		8.05	%	1,854,168		17,844		3.90	%
Total interest-earning assets	5,719,376		$	88,294	6.38	%	4,249,043		$	33,371	3.46	%
Noninterest-earning assets	1,068,318						453,759
Total assets	$	6,787,694					$	4,702,802
Interest-bearing liabilities:
Interest-bearing checking	$	148,640	$	78	0.21	%	$	100,804	$	51	0.20	%
Savings	56,048		9		0.07	%	59,634		9		0.06	%
Money markets	57,932		92		0.64	%	48,812		27		0.22	%
Time deposits	148,384		715		1.95	%	118,933		344		1.17	%
Wholesale deposits	2,283,049		13,846		2.46	%	685,025		2,526		1.50	%
Total interest-bearing deposits	2,694,053		14,740		2.22	%	1,013,208		2,957		1.18	%
Overnight fed funds purchased	103,600		637		2.49	%	407,789		1,679		1.67	%
FHLB advances	—		—		—	%	2,333		9		1.56	%
Subordinated debentures	73,542		1,162		6.41	%	73,395		1,114		6.15	%
Other borrowings	39,610		405		4.14	%	19,602		207		4.29	%
Total borrowings	216,752		2,204		4.12	%	503,119		3,009		2.43	%
Total interest-bearing liabilities	2,910,805		16,944		2.36	%	1,516,327		5,966		1.60	%
Noninterest-bearing deposits	2,953,275		—		—	%	2,656,516		—		—	%
Total deposits and interest-bearing liabilities	5,864,080		$	16,944	1.17	%	4,172,843		$	5,966	0.58	%
Other noninterest-bearing liabilities	129,525						86,675
Total liabilities	5,993,605						4,259,518
Shareholders' equity	794,089						443,284
Total liabilities and shareholders' equity	$	6,787,694					$	4,702,802
Net interest income and net interest rate spread including noninterest-bearing deposits			$	71,350	5.21	%			$	27,405	2.88	%
Net interest margin					5.06	%					2.61	%
Tax-equivalent effect					0.12	%					0.28	%
Net interest margin, tax-equivalent(3)					5.18	%					2.89	%

⁽¹⁾ Tax rate used to arrive at the TEY for the three months ended March 31, 2019 was 21%.

⁽²⁾ Tax rate used to arrive at the TEY for the three months ended March 31, 2018 was 24.53%.

⁽³⁾ Net interest margin expressed on a fully-taxable-equivalent basis ("Net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. We believe that it is a standard practice in the banking industry to present net interest margin expressed on a fully-taxable-equivalent basis, and accordingly believe the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.

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Six Months Ended March 31,	2019						2018
(Dollars in Thousands)	Average Outstanding Balance		Interest Earned / Paid		Yield / Rate (1)		Average Outstanding Balance		Interest Earned / Paid		Yield / Rate(2)
Interest-earning assets:
Cash & fed funds sold	$	161,931	$	2,468	3.06	%	$	116,163	$	1,329	2.29	%
Mortgage-backed securities	377,730		5,559		2.95	%	657,959		7,805		2.38	%
Tax exempt investment securities	1,083,386		13,941		3.27	%	1,420,134		17,699		3.31	%
Asset-backed securities	292,184		5,389		3.70	%	102,864		1,985		3.87	%
Other investment securities	126,492		1,745		2.77	%	77,100		1,123		2.92	%
Total investments	1,879,792		26,634		3.24	%	2,258,057		28,612		3.05	%
Total commercial finance	1,605,531		81,235		10.15	%	249,627		5,877		4.72	%
Total consumer finance	309,233		13,519		8.77	%	196,203		6,327		6.47	%
Total tax services	188,201		8,206		8.74	%	216,694		833		0.77	%
Total warehouse finance	140,349		4,421		6.32	%	—		—		—	%
National Lending loans and leases	2,243,314		107,381		9.60	%	662,524		13,037		3.95	%
Community Banking loans	1,168,545		26,787		4.60	%	965,345		21,250		4.41	%
Total loans and leases	3,411,859		134,168		7.89	%	1,627,869		34,287		4.22	%
Total interest-earning assets	5,453,582		$	163,270	6.14	%	4,002,089		$	64,228	3.51	%
Noninterest-earning assets	926,604						407,600
Total assets	$	6,380,186					$	4,409,689
Interest-bearing liabilities:
Interest-bearing checking	$	125,508	$	135	0.22	%	$	85,965	$	101	0.23	%
Savings	54,841		19		0.07	%	56,323		17		0.06	%
Money markets	56,090		156		0.56	%	48,351		54		0.22	%
Time deposits	177,028		1,597		1.81	%	123,767		710		1.15	%
Wholesale deposits	1,987,559		23,429		2.36	%	583,346		3,960		1.36	%
Total interest-bearing deposits	2,401,026		25,336		2.12	%	897,752		4,842		1.08	%
Overnight fed funds purchased	250,049		3,117		2.50	%	271,994		2,203		1.62	%
FHLB advances	—		—		—	%	137,088		946		1.38	%
Subordinated debentures	73,523		2,323		6.34	%	73,377		2,227		6.09	%
Other borrowings	45,209		872		3.87	%	21,310		409		3.85	%
Total borrowings	368,781		6,312		3.43	%	503,769		5,785		2.30	%
Total interest-bearing liabilities	2,769,806		31,648		2.29	%	1,401,521		10,627		1.52	%
Noninterest-bearing deposits	2,718,661		—		—	%	2,490,534		—		—	%
Total deposits and interest-bearing liabilities	5,488,467		$	31,648	1.16	%	3,892,055		$	10,627	0.55	%
Other noninterest-bearing liabilities	118,783						78,952
Total liabilities	5,607,250						3,971,007
Shareholders' equity	772,936						438,682
Total liabilities and shareholders' equity	$	6,380,186					$	4,409,689
Net interest income and net interest rate spread including noninterest-bearing deposits			$	131,622	4.98	%			$	53,601	2.96	%
Net interest margin					4.84	%					2.68	%
Tax-equivalent effect					0.14	%					0.29	%
Net interest margin, tax-equivalent(3)					4.98	%					2.97	%

(1) Tax rate used to arrive at the TEY for the six months ended March 31, 2019 was 21%.

(2) Tax rate used to arrive at the TEY for the six months ended March 31, 2018 was 24.53%.

(3) Net interest margin expressed on a fully-taxable-equivalent basis ("Net interest margin, tax-equivalent") is a non-GAAP financial measure. The tax-equivalent adjustment to net interest income recognizes the estimated income tax savings when comparing taxable and tax-exempt assets and adjusting for federal and state exemption of interest income. We believe that it is a standard practice in the banking industry to present net interest margin expressed on a fully-taxable-equivalent basis, and accordingly believe the presentation of this non-GAAP financial measure may be useful for peer comparison purposes.

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Provision for Loan and Lease Losses.  The Company recorded a $33.3 million and a $42.4 million provision for loan and lease losses for the three and six month periods ended March 31, 2019, respectively, as compared to a $18.3 million and a $19.4 million provision for loan and lease losses for the three and six month periods ended March 31, 2018, respectively. Also see Note 4 to the Condensed Consolidated Financial Statements included in this quarterly report.

Noninterest Income.  Noninterest income for the fiscal 2019second quarter increased by $7.6 million, or 8%, to $105.0 million from $97.4 million for the same period in the prior fiscal year, largely due to increases in rental income of $9.9 million, other income of $2.3 million, deposit fees of $1.1 million and gain on sale of loans and leases of $1.1 million. Partially offsetting the increase in noninterest income, card fee income decreased $3.8 million, or 14%, to $23.1 million and total tax product fee income decreased $3.0 million to $64.6 million from the same quarter of the prior fiscal year. The increases in rental income, other income and gain on sale of loans and leases were largely attributable to the Crestmark Acquisition. The card fee income decrease was related to the wind-down of two non-strategic partners and the transition of certain fees to deposit fees. Certain tax product revenues moved from fee income to interest income due to the launch of a new interest-bearing refund advance product.

Noninterest income for the six months ended March 31, 2019 was $142.8 million, an increase of $16.1 million, or 13%, from the same period in the prior fiscal year. This increase was primarily due to an increase in rental income, other income, deposit fees, and an increase in gain on sale of investment securities.

Noninterest Expense.  Noninterest expense increased $41.8 million, or 61%, to $110.3 million for the 2019 fiscal second quarter, compared to the same quarter in 2018. This increase was primarily caused by increases of $17.0 million in compensation and benefits expense, $9.7 million in impairment expense, $6.1 million in other expense, and $4.5 million in operating lease equipment depreciation expense. Increases in intangible amortization expense, occupancy and equipment, and legal and consulting also contributed to the increase in noninterest expense. The increase in compensation and benefits expense was primarily due to the addition of Crestmark division employees, executive transition agreement costs and new hires in the back half of fiscal 2018 in support of Meta's national lending and other business initiatives. The impairment expense included $9.5 million related to the DC Solar relationship.

Noninterest expense for the six months ended March 31, 2019 increased by $72.0 million, or 64%, to $184.5 million compared to the same period in the prior fiscal year. This increase was primarily caused by increases in compensation and benefits expense, other expense, impairment expense, intangible amortization expense, occupancy and equipment, and legal and consulting expense.

Income Tax. The Company recorded an income tax benefit for the fiscal 2019second quarter of $0.4 million, resulting in an effective tax rate of (1.20%), compared to an income tax expense of $6.5 million, or an effective tax rate of 17.24%, for the fiscal 2018 second quarter. Investment tax credits related to solar leasing initiatives and future originations in fiscal 2019 will be recognized ratably based on income over the duration of the current fiscal year. The timing and impact of future solar tax credits are expected to vary from period to period, and Meta intends to undertake only those tax credit opportunities that meet the Company's underwriting criteria.

LIQUIDITY AND CAPITAL RESOURCES

The Company’s primary sources of funds are deposits, derived principally through its Payments divisions, and to a lesser extent through its Community Banking division borrowings, principal and interest payments on loans and mortgage-backed securities, and maturing investment securities. In addition, the Company utilizes wholesale deposit sources to provide temporary funding when necessary or when favorable terms are available. While scheduled loan repayments and maturing investments are relatively predictable, deposit flows and early loan repayments are influenced by the level of interest rates, general economic conditions and competition. The Company uses its capital resources principally to meet ongoing commitments to fund maturing certificates of deposits and loan commitments, to maintain liquidity, and to meet operating expenses.  At March 31, 2019, the Company had commitments to originate and purchase loans and unused lines of credit totaling $860.4 million.  The Company believes that loan repayments and other sources of funds will be adequate to meet its foreseeable short- and long-term liquidity needs.

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In July 2013, the Company’s primary federal regulator, the Federal Reserve and the Bank’s primary federal regulator, the OCC, approved final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations, which replaced earlier frameworks adopted in 1988 ("Basel I") and 2004 (Basel II). The Basel III Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Basel III Capital Rules substantially revised the risk-based capital requirements applicable to financial institution holding companies and their depository institution subsidiaries, including us and the Bank, as compared to U.S. general risk-based capital rules. The Basel III Capital Rules revised the definitions and the components of regulatory capital, as well as addressed other issues affecting the numerator in banking institutions’ regulatory capital ratios. In addition, the Basel III Capital Rules implemented certain provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules. The Basel III Capital Rules became effective for us and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions.

Pursuant to the Basel III Capital Rules, the Company and the Bank, respectively, are subject to regulatory capital adequacy requirements promulgated by the Federal Reserve and the OCC. Failure by the Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Under the capital requirements and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and the Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and the Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At March 31, 2019, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements.  The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components. 

The tables below include certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analysis.

					Minimum to be		Minimum to be
					Adequately		Well Capitalized
					Capitalized Under		Under Prompt
					Prompt Corrective		Corrective Action
At March 31, 2019	Company		Bank		Action Provisions		Provisions
Tier 1 leverage ratio	7.45	%	8.42	%	4.00	%	5.00	%
Common equity Tier 1 capital ratio	10.94		12.72		4.50		6.50
Tier 1 capital ratio	11.31		12.76		6.00		8.00
Total qualifying capital ratio	14.20		13.92		8.00		10.00

Due to the predictable, quarterly cyclicality of noninterest-bearing deposits in conjunction with tax season business activity, management believes that a six-month capital calculation is a useful metric to monitor the Company’s overall capital management process. As such, the Bank’s six-month average Tier 1 leverage ratio, Common Equity Tier 1 capital ratio, Tier 1 capital ratio, and Total qualifying capital ratio as of March 31, 2019 were 8.97%, 12.27%, 12.31%, and 13.42%, respectively.

62

The following table provides certain non-GAAP financial measures used to compute certain of the ratios included in the table above, as well as a reconciliation of such non-GAAP financial measures to the most directly comparable financial measure in accordance with GAAP:

	Standardized Approach(1) March 31, 2019
	(Dollars in Thousands)
Total stockholders' equity	$	823,709
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities	302,768
LESS: Certain other intangible assets	56,456
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards	7,381
LESS: Net unrealized gains (losses) on available-for-sale securities	(10,022		)
LESS: Noncontrolling interest	3,528
LESS: Unrealized currency gains (losses)	(242		)
Common Equity Tier 1(1)	463,840
Long-term debt and other instruments qualifying as Tier 1	13,661
Tier 1 minority interest not included in common equity tier 1 capital	2,064
Total Tier 1 capital	479,565
Allowance for loan and lease losses	48,812
Subordinated debentures (net of issuance costs)	73,566
Total qualifying capital	601,963

⁽¹⁾ Capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum common equity tier 1 capital ratio; those changes are being fully phased in through the end of 2021.

The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity at March 31, 2019. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.

	March 31, 2019
	(Dollars in Thousands)
Total Stockholders' Equity	$	823,709
LESS: Goodwill	307,464
LESS: Intangible assets	60,506
Tangible common equity	455,739
LESS: AOCI	(10,264		)
Tangible common equity excluding AOCI	466,003

Since January 1, 2016, the Company and the Bank have been required to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. The implementation of the capital conservation buffer by annual increments finished on January 1, 2019, so that the required Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios with the buffer are currently 7.0%, 8.5% and 10.5%, respectively.

Based on current and expected continued profitability and subject to continued access to capital markets, we believe that the Company and the Bank will continue to meet the capital conservation buffer of 2.5% in addition to required minimum capital ratios.

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CONTRACTUAL OBLIGATIONS

See "Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations-Contractual Obligations" in the Company’s Annual Report on Form 10-K for its fiscal year ended September 30, 2018 for a summary of our contractual obligations as of September 30, 2018. There were no material changes outside the ordinary course of our business in contractual obligations from September 30, 2018 through March 31, 2019.

OFF-BALANCE SHEET FINANCING ARRANGEMENTS

For discussion of the Company’s off-balance sheet financing arrangements as of March 31, 2019, see Note 11 to our consolidated financial statements included in Part I, Item 1 “Financial Statements” of this Quarterly Report on Form 10-Q. Depending on the extent to which the commitments or contingencies described in Note 11 occur, the effect on the Company’s capital and net income could be significant.

Item 3.    Quantitative and Qualitative Disclosures About Market Risk.

MARKET RISK

The Company derives a portion of its income from the excess of interest collected over interest paid. The rates of interest the Company earns on assets and pays on liabilities generally are established contractually for a period of time. Market interest rates change over time. Accordingly, the Company’s results of operations, like those of most financial institutions, are impacted by changes in interest rates and the interest rate sensitivity of its assets and liabilities. The risk associated with changes in interest rates and the Company’s ability to adapt to these changes is known as interest rate risk and is the Company’s only significant “market” risk.

The Company monitors and measures its exposure to changes in interest rates in order to comply with applicable government regulations and risk policies established by the Board of Directors, and in order to preserve stockholder value. In monitoring interest rate risk, the Company analyzes assets and liabilities based on characteristics including size, coupon rate, repricing frequency, maturity date and likelihood of prepayment.

If the Company’s assets mature or reprice more rapidly or to a greater extent than its liabilities, then economic value of equity and net interest income would tend to increase during periods of rising rates and decrease during periods of falling interest rates. Conversely, if the Company’s assets mature or reprice more slowly or to a lesser extent than its liabilities, then economic value of equity and net interest income would tend to decrease during periods of rising interest rates and increase during periods of falling interest rates.

The Company currently focuses lending efforts toward originating and purchasing competitively priced adjustable-rate and fixed-rate loan products with short to intermediate terms to maturity, and may originate loans with terms longer than five years for borrowers that have a strong credit profile and typically lower loan-to-value ratios. This approach allows the Company to better maintain a portfolio of loans that will have less sensitivity to changes in the level of interest rates, while providing a reasonable spread to the cost of liabilities used to fund the loans.

The Company’s primary objective for its investment portfolio is to provide a source of liquidity for the Company. In addition, the investment portfolio may be used in the management of the Company’s interest rate risk profile. The investment policy generally calls for funds to be invested among various categories of security types and maturities based upon the Company’s need for liquidity, desire to achieve a proper balance between minimizing risk while maximizing yield, the need to provide collateral for borrowings, and the need to fulfill the Company’s asset/liability management goals.

The Company’s cost of funds responds to changes in interest rates due to the relatively short-term nature of its wholesale deposit portfolio and the relatively short-term nature of its borrowed funds. The Company believes that its growing portfolio of longer duration, low-cost deposits generated from its prepaid division provides a stable and profitable funding vehicle, but also subjects the Company to greater risk in a falling interest rate environment than it would otherwise have without this portfolio. This risk is due to the fact that, while asset yields may decrease in a falling interest rate environment, the Company cannot significantly reduce interest costs associated with these deposits, which thereby compress the Company’s net interest margin. As a result of the Company’s interest rate risk exposure in this regard, the Company typically does not enter into any new longer-term wholesale borrowings, and generally has not emphasized longer-term time deposit products.

64

The Board of Directors and relevant government regulations establish limits on the level of acceptable interest rate risk at the Company, to which management adheres. There can be no assurance, however, that, in the event of an adverse change in interest rates, the Company’s efforts to limit interest rate risk will be successful.

Interest Rate Risk (“IRR”)

Overview. The Company actively manages interest rate risk, as changes in market interest rates can have a significant impact on reported earnings. The Bank, like other financial institutions, is subject to interest rate risk to the extent that its interest-bearing liabilities mature or reprice more rapidly than its interest-earning assets. The Company's interest rate risk analysis is designed to compare income and economic valuation simulations in market scenarios designed to alter the direction, magnitude and speed of interest rate changes, as well as the slope of the yield curve. The Company does not currently engage in trading activities to control interest rate risk although it may do so in the future, if deemed necessary, to help manage interest rate risk.

Earnings at risk and economic value analyses. As a continuing part of its financial strategy, the Bank considers methods of managing an asset/liability mismatch consistent with maintaining acceptable levels of net interest income. In order to monitor interest rate risk, the Board of Directors has created an Asset Liability Committee whose principal responsibilities are to assess the Bank’s asset/liability mix and implement strategies that will enhance income while managing the Bank’s vulnerability to changes in interest rates.

The Company uses two approaches to model interest rate risk: Earnings at Risk (“EAR analysis”) and Economic Value of Equity (“EVE analysis”). Under EAR analysis, net interest income is calculated for each interest rate scenario to the net interest income forecast in the base case. EAR analysis measures the sensitivity of interest-sensitive earnings over a one-year minimum time horizon. The results are affected by projected rates, prepayments, caps and floors. Management exercises its best judgement in making assumptions regarding events that management can influence, such as non-contractual deposit re-pricing, as well as events outside of management's control, such as customer behavior on loan and deposit activity and the effect that competition has on both loan and deposit pricing. These assumptions are subjective and, as a result, net interest income simulation results will differ from actual results due to the timing, magnitude, and frequency of interest rate changes, changes in market conditions, customer behavior and management strategies, among other factors. We perform various sensitivity analyses on assumptions of deposit attrition and deposit re-pricing. Market-implied forward rates and various likely and extreme interest rate scenarios can be used for EAR analysis. These likely and extreme scenarios can include rapid and gradual interest rate ramps, rate shocks and yield curve twists.

The EAR analysis used in the following table reflects the required analysis used no less than quarterly by management. It models -100, +100, +200, +300, and +400 basis point parallel shifts in market interest rates over the next one-year period. Due to the current low level of interest rates, only a -100 basis point parallel shift is represented.

The Company was within Board policy limits for all interest rate scenarios using the snapshot as of March 31, 2019 as required by regulation.  The table below shows the results of the scenarios as of March 31, 2019:

Net Sensitive Earnings at Risk
		Change in Interest Income/Expense for a given change in interest rates
		Over / (Under) Base Case Parallel Shift
(Dollars in thousands)	Book Value	-100		Base	100		200		300		400
Total Interest-Sensitive Income	5,123,519	267,839		290,574	312,869		334,229		355,149		376,024
Total Interest-Sensitive Expense	1,960,036	33,175		42,299	51,753		61,217		70,696		80,167
Net Interest-Sensitive Income	3,163,483	234,664		248,275	261,116		273,012		284,453		295,857
Basis Point Change Scenario	—	-5.5	%	—	5.2	%	10.0	%	14.6	%	19.2	%
Board Policy Limits	—	-8.0	%	—	-8.0	%	-10.0	%	-15.0	%	-20.0	%

The EAR analysis reported at March 31, 2019, shows that in all rising rate scenarios, more assets than liabilities would reprice over the modeled one-year period.

65

IRR is a snapshot in time. The Company’s business and deposits are very predictably cyclical on a weekly, monthly and yearly basis. The Company’s static IRR results could vary depending on which day of the week and timing in relation to certain payrolls, as well as time of the month in regard to early funding of certain programs, when this snapshot is taken. The Company’s overnight federal funds purchased fluctuates on a predictable daily and monthly basis due to fluctuations in a portion of its noninterest-bearing deposit base, primarily related to payroll processing and timing of when certain programs are prefunded and when the funds are received.

The Company believes that its growing portfolio of noninterest-bearing deposits provides a stable and profitable funding vehicle and a significant competitive advantage in a rising interest rate environment as the Company’s cost of funds would likely remain relatively low, with less increase expected relative to many other banks.

Under EVE analysis, the economic value of financial assets, liabilities and off-balance sheet instruments, is derived under each rate scenario. The economic value of equity is calculated as the difference between the estimated market value of assets and liabilities, net of the impact of off-balance sheet instruments.

The EVE analysis used in the following table reflects the required analysis used no less than quarterly by management. It models immediate -100, +100, +200, +300 and +400 basis point parallel shifts in market interest rates. Due to the current low level of interest rates, only a -100 basis point parallel shift is represented.

The Company was within Board policy limits for all scenarios. The table below shows the results of the scenarios as of March 31, 2019:

Economic Value Sensitivity as of March 31, 2019

	Standard (Parallel Shift)
	Economic Value of Equity at Risk%
	-100		100		200		300		400
Basis Point Change Scenario	-3.5	%	1.3	%	1.6	%	1.0	%	0.6	%
Board Policy Limits	-10.0	%	-10.0	%	-20.0	%	-30.0	%	-40.0	%

The EVE at risk reported at March 31, 2019 shows that as interest rates increase, the economic value of equity position will be relatively neutral. When viewing total asset versus total liability economic value, projected total assets are affected similarly on a percentage basis as compared to projected total liabilities in a rising rate environment.

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Item 4.    Controls and Procedures.

CONTROLS AND PROCEDURES

Any control system, no matter how well designed and operated, can provide only reasonable (not absolute) assurance that its objectives will be met.  Furthermore, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, have been detected. Further, the design of a control system must reflect the fact that there are resource constraints, and the benefits of controls must be considered relative to their costs. Because of the inherent limitations in a cost-effective control system, no evaluation of controls can provide absolute assurance that misstatements due to error or fraud will not occur or that all control issues and instances of fraud, if any, within the Company have been detected.

DISCLOSURE CONTROLS AND PROCEDURES

The Company’s management, with the participation of the Company’s Chief Executive Officer and Chief Financial Officer, has evaluated the effectiveness of the Company’s “disclosure controls and procedures”, as such term is defined in Rules 13a - 15(e) and 15d - 15(e) of the Securities Exchange Act of 1934 (“Exchange Act”) as of the end of the period covered by this quarterly report.

Based upon that evaluation, our Chief Executive Officer and Chief Financial Officer concluded that, at March 31, 2019, the Company’s disclosure controls and procedures were effective to provide reasonable assurance that (i) the information required to be disclosed by us in the reports that we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the SEC’s rules and forms, and (ii) information required to be disclosed by us in our reports that we file or submit under the Exchange Act is accumulated and communicated to our management, including our principal executive and principal financial officers, or persons performing similar functions, as appropriate to allow timely decisions regarding required disclosure.

INTERNAL CONTROL OVER FINANCIAL REPORTING

With the participation of the Company’s management, including its Chief Executive Officer and Chief Financial Officer, the Company conducted an evaluation of the Company’s internal control over financial reporting to determine whether any changes occurred during the Company’s fiscal quarter ended March 31, 2019, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.  Based on such evaluation, management concluded that, as of the end of the period covered by this report, there have not been any changes in the Company’s internal control over financial reporting (as such term is defined in Rules 13a-15(f) and 15d-15(f) under the Exchange Act) during the fiscal quarter to which this report relates that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

67

META FINANCIAL GROUP, INC.

PART II - OTHER INFORMATION

FORM 10-Q

Item 1. Legal Proceedings. - See “Legal Proceedings” under Note 11 to the Notes to Condensed Consolidated Financial Statements, which is incorporated herein by reference.

Item 1A. Risk Factors. - A description of our risk factors can be found in "Item 1A. Risk Factors" included in our Annual Report on Form 10-K for the fiscal year ended September 30, 2018. There were no material changes to those risk factors during the six months ended March 31, 2019, except that the following risk factor is hereby added:

Our investments in certain tax-advantaged projects may not generate returns as anticipated and may have an adverse impact on our results of operations.

We invest in certain tax-advantaged investments that support renewable energy resources. Our investments in these projects are designed to generate a return in part through the realization of federal and state income tax credits, and other tax benefits, over specified time periods. We are subject to the risk that previously recorded tax credits, which remain subject to recapture by taxing authorities based on compliance features required to be met at the project level, may fail to meet certain government compliance requirements and may not be able to be realized. For example, as previously disclosed, we previously recognized $7.9 million of investment tax credits between fiscal year 2017 and 2018 associated with the MSGs subject to the transactions with the DC Solar entities. We are aware that the DC Solar entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. While we continue to gather information about the situation, there can be no assurances that such tax credits will not be subject to recapture in the future. See Note 3. Acquisitions to the Condensed Consolidated Financial Statements included herein for further information regarding the transactions with these DC Solar entities and related matters.

The risk of not being able to realize, or of subsequently incurring a recapture of, the tax credits and other tax benefits depends on various factors, some of which are outside our control, including changes in the applicable tax code, as well as the continued economic viability of the project and project operator.  Further, while we engage in due diligence review both prior to the initial investment and on an ongoing basis, our due diligence review may not identify relevant issues or risks that may adversely impact our ability to realize these tax credits or other tax benefits. The possible inability to realize these tax credits and other tax benefits may have a negative impact on our financial results.

68

Item 6. Exhibits.

Exhibit Number	Description
31.1	Section 302 certification of Chief Executive Officer.
31.2	Section 302 certification of Chief Financial Officer.
32.1	Section 906 certification of Chief Executive Officer.
32.2	Section 906 certification of Chief Financial Officer.
101.INS	Instance Document
101.SCH	XBRL Taxonomy Extension Schema Document
101.CAL	XBRL Taxonomy Extension Calculation Linkbase Document
101.DEF	XBRL Taxonomy Extension Definition Linkbase Document
101.LAB	XBRL Taxonomy Extension Label Linkbase Document
101.PRE	XBRL Taxonomy Extension Presentation Linkbase Document

69

META FINANCIAL GROUP, INC.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	META FINANCIAL GROUP, INC.
Date: May 8, 2019	By:	/s/ Bradley C. Hanson
		Bradley C. Hanson,
		President, Chief Executive Officer and Director
Date: May 8, 2019	By:	/s/ Glen W. Herrick
		Glen W. Herrick, Executive Vice President
		and Chief Financial Officer

70

EX-31.1

Exhibit 31.1

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Bradley C. Hanson, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Meta Financial Group, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report), that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2019	/s/ Bradley C. Hanson
	President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATION PURSUANT TO

SECTION 302 OF THE SARBANES-OXLEY ACT OF 2002

I, Glen W. Herrick, certify that:

1.    I have reviewed this quarterly report on Form 10-Q of Meta Financial Group, Inc.;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

(a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

(b)    Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

(c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

(d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report), that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

(a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

(b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 8, 2019	/s/ Glen W. Herrick
	Executive Vice President and Chief Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Meta Financial Group, Inc. (the “Company”) for the quarterly period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Bradley C. Hanson, the Chief Executive Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)    the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

By:/s/ Bradley C. Hanson

Name: Bradley C. Hanson

President and Chief Executive Officer

May 8, 2019

EX-32.2

Exhibit 32.2

CERTIFICATION PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Meta Financial Group, Inc. (the “Company”) for the quarterly period ended March 31, 2019 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), I, Glen W. Herrick, Chief Financial Officer of the Company, certify, pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, that:

(1)    the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2)    the information contained in the Report fairly presents, in all material respects, the financial condition and result of operations of the Company.

By:/s/ Glen W. Herrick

Name: Glen W. Herrick

Executive Vice President and Chief Financial Officer

May 8, 2019

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Document and Entity Information - shares	6 Months Ended
	Mar. 31, 2019	May 02, 2019
Document Information [Line Items]
Entity Registrant Name	META FINANCIAL GROUP INC
Entity Central Index Key	0000907471
Current Fiscal Year End Date	--09-30
Entity Emerging Growth Company	false
Entity Small Business	false
Entity Filer Category	Large Accelerated Filer
Document Fiscal Year Focus	2019
Document Fiscal Period Focus	Q2
Document Type	10-Q
Amendment Flag	false
Document Period End Date	Mar. 31, 2019
Common Stock [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		39,449,882
Common Stock, Nonvoting [Member]
Document Information [Line Items]
Entity Common Stock, Shares Outstanding		0

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Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
ASSETS
Cash and cash equivalents	$ 156,461	$ 99,977
Investment securities available for sale, at fair value	1,081,663	1,484,160
Mortgage-backed securities available for sale, at fair value	413,493	364,065
Investment securities held to maturity, at cost	146,992	163,893
Mortgage-backed securities held to maturity, at cost	7,606	7,850
Loans held for sale	59,745	15,606
Loans and leases	3,437,980	2,944,739
Allowance for loan and lease losses	(48,672)	(13,040)
Federal Home Loan Bank Stock, at cost	7,436	23,400
Accrued interest receivable	20,281	22,016
Premises, furniture, and equipment, net	45,457	40,458
Rental equipment, net	140,087	107,290
Bank-owned life insurance	88,565	87,293
Foreclosed real estate and repossessed assets	29,548	31,638
Goodwill	307,464	303,270
Intangible assets	60,506	70,719
Prepaid assets	26,597	27,906
Deferred taxes	19,079	18,737
Other assets	49,754	35,090
Total assets	6,050,042	5,835,067
LIABILITIES
Noninterest-bearing checking	3,034,428	2,405,274
Interest-bearing checking	183,492	111,587
Savings deposits	59,978	54,765
Money market deposits	56,563	51,995
Time certificates of deposit	154,401	276,180
Wholesale deposits	1,481,445	1,531,186
Total deposits	4,970,307	4,430,987
Short-term debt	11,583	425,759
Long-term debt	99,800	88,963
Accrued interest payable	9,239	7,794
Accrued expenses and other liabilities	135,404	133,838
Total liabilities	5,226,333	5,087,341
STOCKHOLDERS’ EQUITY
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2019 and September 30, 2018, respectively	0	0
Common stock	395	393
Additional paid-in capital	576,406	565,811
Retained earnings	258,600	213,048
Accumulated other comprehensive loss	(10,264)	(33,111)
Treasury stock, at cost, 114,558 and 24,783 common shares at March 31, 2019 and September 30, 2018, respectively	(4,956)	(1,989)
Total equity attributable to parent	820,181	744,152
Noncontrolling interest	3,528	3,574
Total stockholders’ equity	823,709	747,726
Total liabilities and stockholders’ equity	6,050,042	5,835,067
Common stock, Nonvoting, $.01 par value; 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2018 and September 30, 2017, respectively [Member]
STOCKHOLDERS’ EQUITY
Common stock	$ 0	$ 0

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Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - $ / shares	Mar. 31, 2019	Sep. 30, 2018
STOCKHOLDERS’ EQUITY
Preferred stock, shares authorized (in shares)	3,000,000	3,000,000
Preferred stock, shares issued (in shares)	0	0
Preferred stock, shares outstanding (in shares)	0	0
Common Stock [Member]
STOCKHOLDERS’ EQUITY
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	90,000,000	90,000,000
Common stock, shares issued (in shares)	39,565,496	39,192,063
Common stock, shares outstanding (in shares)	39,450,938	39,167,280
Common Stock, Nonvoting [Member]
STOCKHOLDERS’ EQUITY
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized (in shares)	3,000,000	3,000,000
Common stock, shares issued (in shares)	0	0
Common stock, shares outstanding (in shares)	0	0
Treasury stock (in shares)	114,558	24,783

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Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Interest and dividend income:
Loans and leases, including fees		$ 73,670	$ 17,844	$ 134,168	$ 34,287
Mortgage-backed securities		2,861	4,047	5,559	7,805
Other investments		11,763	11,480	23,543	22,136
Total interest and dividend income		88,294	33,371	163,270	64,228
Interest expense:
Deposits		14,740	2,957	25,336	4,842
FHLB advances and other borrowings		2,204	3,009	6,312	5,785
Total interest expense		16,944	5,966	31,648	10,627
Net interest income		71,350	27,405	131,622	53,601
Provision for loan and lease losses		33,318	18,343	42,417	19,411
Net interest income after provision for loan and lease losses		38,032	9,062	89,205	34,190
Noninterest income:
Bank-owned life insurance		631	650	1,273	1,319
Gain (loss) on sale of securities available-for-sale, net (Includes $231 and ($166) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended March 31, 2019 and 2018, respectively and $209 and ($1,176) for the six months ended March 31, 2019 and 2018, respectively)		231	(166)	209	(1,176)
Gain on sale of loans and leases		1,085	0	1,951	0
Loss on foreclosed real estate		(200)	0	(185)	(19)
Other income		2,679	414	3,556	516
Total noninterest income		105,025	97,419	142,776	126,687
Noninterest expense:
Compensation and benefits		49,164	32,172	82,174	54,512
Refund transfer product expense		7,181	9,871	7,191	9,972
Tax advance product expense		2,225	1,474	2,677	1,754
Card processing		6,971	7,190	14,056	13,730
Occupancy and equipment		7,212	4,477	13,670	9,367
Operating lease equipment depreciation		4,485	0	12,251	0
Legal and consulting		4,308	3,239	8,277	5,655
Marketing		585	668	1,124	1,221
Data processing		321	243	758	657
Intangible amortization		5,596	2,731	9,978	4,412
Impairment expense		9,660	0	9,660	0
Other expense		12,546	6,432	22,733	11,259
Total noninterest expense		110,254	68,497	184,549	112,539
Income before income tax expense		32,803	37,984	47,432	48,338
Income tax (benefit) expense (Includes $58 and ($46) reclassified from accumulated other comprehensive loss for the three months ended March 31, 2019 and 2018, respectively and $52 and ($329) for the six months ended March 31, 2019 and 2018, respectively)		(395)	6,548	(2,086)	12,232
Net income before noncontrolling interest		33,198	31,436	49,518	36,106
Net income attributable to noncontrolling interest		1,078	0	2,000	0
Net income attributable to parent		$ 32,120	$ 31,436	$ 47,518	$ 36,106
Earnings per common share
Basic (in dollars per share)	[1]	$ 0.81	$ 1.08	$ 1.21	$ 1.24
Diluted (in dollars per share)	[1]	$ 0.81	$ 1.08	$ 1.20	$ 1.24
Refund transfer product fees
Noninterest income:
Revenue from contract with customer		$ 31,601	$ 33,803	$ 31,862	$ 33,995
Tax advance product fees
Noninterest income:
Revenue from contract with customer		33,038	33,838	34,723	35,785
Card fees
Noninterest income:
Revenue from contract with customer		23,052	26,856	42,403	52,103
Rental income
Noninterest income:
Revenue from contract with customer		9,890	0	20,780	0
Total noninterest income		9,890	0	20,780	0
Loan and lease fees
Noninterest income:
Revenue from contract with customer		925	1,042	2,173	2,334
Deposit fees
Noninterest income:
Revenue from contract with customer		$ 2,093	$ 982	$ 4,031	$ 1,830

[1] All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

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Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Noninterest income:
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss)	$ 231	$ (166)
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss)	$ 58	$ (46)

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Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Statement of Comprehensive Income [Abstract]
Net income before noncontrolling interest	$ 33,198	$ 31,436	$ 49,518	$ 36,106
Other comprehensive (loss) income:
Change in net unrealized gain (loss) on debt securities	25,089	(35,993)	31,260	(43,472)
(Gain) loss realized in net income	(231)	166	(209)	1,176
Total	24,858	(35,827)	31,051	(42,296)
Unrealized gain (loss) on currency translation	116	0	(245)	0
Deferred income tax effect	6,051	(8,879)	7,484	(11,964)
Total other comprehensive (loss) income	18,923	(26,948)	23,322	(30,332)
Total comprehensive income	52,121	4,488	72,840	5,774
Total comprehensive income attributable to noncontrolling interest	1,078	0	2,000	0
Comprehensive income attributable to parent	$ 51,043	$ 4,488	$ 70,840	$ 5,774

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands	Total	Parent [Member]	Common Stock	Additional Paid-in Capital	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	Noncontrolling Interest
Beginning Balance at Sep. 30, 2017	$ 434,496	$ 434,496	$ 288	$ 258,144	$ 167,164	$ 9,166	$ (266)	$ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(2,517)	(2,517)			(2,517)
Issuance of common shares due to exercise of stock options	147	147		147
Issuance of common shares due to restricted stock	2	2	2
Issuance of common shares due to ESOP	1,606	1,606	1	1,605
Shares repurchased for tax withholdings on stock compensation	(2,126)	(2,126)		(726)			(1,400)
Stock compensation	6,321	6,321		6,321
Total other comprehensive income	(30,332)	(30,332)				(30,332)
Net income	36,106	36,106			36,106
Ending Balance at Mar. 31, 2018	443,703	443,703	291	265,491	200,753	(21,166)	(1,666)	0
Beginning Balance at Dec. 31, 2017	437,705	437,705	290	262,678	170,578	5,782	(1,623)	0
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(1,261)	(1,261)			(1,261)
Issuance of common shares due to exercise of stock options	147	147		147
Issuance of common shares due to restricted stock	1	1	1
Shares repurchased for tax withholdings on stock compensation	(455)	(455)		(412)			(43)
Stock compensation	3,078	3,078		3,078
Total other comprehensive income	(26,948)	(26,948)				(26,948)
Net income	31,436	31,436			31,436
Ending Balance at Mar. 31, 2018	443,703	443,703	291	265,491	200,753	(21,166)	(1,666)	0
Beginning Balance at Sep. 30, 2018	747,726	744,152	393	565,811	213,048	(33,111)	(1,989)	3,574
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(3,943)	(3,943)			(3,943)
Issuance of common shares due to exercise of stock options	54	54		54
Issuance of common shares due to restricted stock	3	3	3
Issuance of common shares due to ESOP	2,010	2,010		2,010
Shares repurchased for tax withholdings on stock compensation	(2,967)	(2,967)	(1)	1			(2,967)	0
Stock compensation	8,530	8,530		8,530
Total other comprehensive income	23,322	23,322				23,322
Net income	49,518	47,518			47,518			2,000
Net investment by (distribution to) noncontrolling interests	(2,046)							(2,046)
Ending Balance at Mar. 31, 2019	823,709	820,181	395	576,406	258,600	(10,264)	(4,956)	3,528
Beginning Balance at Dec. 31, 2018	770,728	767,461	394	572,156	228,453	(29,186)	(4,356)	3,267
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Cash dividends declared on common stock	(1,973)	(1,973)			(1,973)
Issuance of common shares due to exercise of stock options	1	1	1
Shares repurchased for tax withholdings on stock compensation	(600)	(600)		0			(600)
Stock compensation	4,250	4,250		4,250
Total other comprehensive income	18,922	18,922				18,922
Net income	33,198	32,120			32,120			1,078
Net investment by (distribution to) noncontrolling interests	(817)							(817)
Ending Balance at Mar. 31, 2019	$ 823,709	$ 820,181	$ 395	$ 576,406	$ 258,600	$ (10,264)	$ (4,956)	$ 3,528

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Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares		6 Months Ended
		Mar. 31, 2019	Mar. 31, 2018
Statement of Stockholders' Equity [Abstract]
Cash dividends declared on common stock (in dollars per share)	[1]	$ 0.05	$ 0.04

[1] See Notes to Condensed Consolidated Financial Statements.(1)All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

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Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Cash flows from operating activities:
Net income	$ 49,518	$ 36,106
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation, amortization and accretion, net	28,933	19,183
Stock compensation	8,530	6,321
Provision (recovery):
Loan and lease losses	42,417	19,411
Deferred taxes	(7,811)	126
Loans held for sale:
Originations	(42,961)	0
Purchases	(5,940)	0
Proceeds from sales	36,461	0
Net change	8,760	0
Fair value adjustment of foreclosed real estate	0	23
Net realized (gain) loss:
Other assets	(46)	(15)
Foreclosed real estate or other assets	185	19
Available for sale securities, net	(209)	1,176
Loans held for sale	(1,650)	0
Leases receivable and rental equipment	(1,985)	0
Net change:
Other assets	(16,226)	(14,472)
Accrued interest payable	1,445	(965)
Accrued expenses and other liabilities	21,951	36,779
Accrued interest receivable	1,735	1,776
Change in bank-owned life insurance value	(1,272)	(1,319)
Impairment on rental equipment	6,194	0
Impairment of intangibles	111	0
Net cash provided by operating activities	128,140	104,149
Available for sale securities:
Purchases	(222,436)	(323,995)
Proceeds from sales	534,779	126,373
Proceeds from maturities and principal repayments	66,417	71,652
Held to maturity:
Proceeds from maturities and principal repayments	16,225	19,863
Loans and leases:
Purchases	(144,104)	(88,986)
Proceeds from sales	10,857	9,582
Net change	(399,380)	(143,766)
Proceeds from sales of foreclosed real estate or other assets	1,905	122
Federal Home Loan Bank stock:
Purchases	(358,516)	(477,604)
Redemption	374,480	520,880
Rental equipment:
Purchases	(58,968)	0
Proceeds from sales	4,962	0
Net change	674	0
Premises and equipment:
Purchases	(8,815)	(3,689)
Proceeds from sales	101	0
Net cash (used in) investing activities	(181,819)	(289,568)
Cash flows from financing activities:
Checking, savings, and money market deposits	712,896	464,084
Time deposits	(121,887)	(51,925)
Wholesale deposits	(49,777)	(295,086)
FHLB and other borrowings	0	(385,000)
Federal funds	(422,000)	(703,000)
Securities sold under agreements to repurchase	(890)	(758)
Net investment by (distribution to) noncontrolling interests	(2,046)	0
Proceeds from other liabilities	5,027	0
Other liabilities	(6,032)	0
Capital lease obligations	(40)	(31)
Cash dividends paid	(3,943)	(2,517)
Purchase of shares by ESOP	2,010	1,606
Issuance of restricted stock	3	2
Proceeds from exercise of stock options & issuance of common stock	54	147
Shares repurchased for tax withholdings on stock compensation	(2,967)	(2,126)
Net cash provided by (used in) financing activities	110,408	(974,604)
Effect of exchange rate changes on cash	(245)	0
Net change in cash and cash equivalents	56,484	(1,160,023)
Cash and cash equivalents at beginning of year	99,977	1,267,586
Cash and cash equivalents at end of year	156,461	107,563
Supplemental disclosure of cash flow information
Interest	18,389	9,662
Income taxes	1,218	3,966
Franchise taxes	73	66
Other taxes	465	153
Supplemental schedule of non-cash investing activities:
Loans and leases to foreclosed real estate or other assets	0	(29,922)
Loans transferred to held for sale	39,452	0
Loans transferred to held for sale	0	0
Securities transferred from held-to-maturity to available-for-sale	0	(306,000)
Short and long term debt transferred from other liabilities	$ 20,026	$ 0

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BASIS OF PRESENTATION

6 Months Ended

Mar. 31, 2019

Organization, Consolidation and Presentation of Financial Statements [Abstract]

BASIS OF PRESENTATION

BASIS OF PRESENTATION

The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2018 included in Meta Financial Group, Inc.’s (“Meta” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 29, 2018.  Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.

The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X.  Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and sixmonth periods ended March 31, 2019 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2019.

All share and per share data reported in this Form 10-Q has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.

Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income.

Certain amounts in the Recorded Investment table presented in Note 4 to the consolidated financial statements have been restated from what was previously reported as of September 30, 2018 on Form 10-K.

Loan and lease tables have been conformed to be consistent with the Company's updated presentation of its lending portfolio. The new presentation includes expanding the commercial and consumer finance portfolio to present the lending categories that are included in each, presenting the warehouse finance portfolio as its own category, and condensing the community bank loan categories. Warehouse finance loans were previously included in the consumer finance portfolio. All current and prior period numbers are reflective of this new presentation and total loan and lease balances remained unchanged.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")

6 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES (ASU)

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")

Significant accounting policies in effect and disclosed within the Company’s most recent audited consolidated financial statements as of September 30, 2018 remain substantially unchanged with the exception of the policies impacted by the adoption of noted ASUs below.

Adopted ASUs

Revenue Recognition - The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), subsequent related Updates (collectively, ASU 2014-09), and ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage of Certain Prepaid Stored-Value Products on October 1, 2018. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative-effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s Meta Payment Systems (MPS) division. Refer to Note 12. Revenue from Contracts with Customers for additional information.

Financial Instruments - The Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities and related Updates (collectively, ASU 2016-01) on October 1, 2018. ASU 2016-01 makes several revisions to Subtopic 825-10, including that ASU 2016-01: (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies impairment assessment of equity investments without readily determinable fair value, (3) eliminates requirement to disclose methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost, (4) requires the use of an exit price notion when measuring fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and liabilities by measurement category and form of financial asset on the balance sheet and accompanying notes. Upon adoption, the Company recorded a cumulative-effect adjustment that reclassed $0.5 million, net of tax, from accumulated other comprehensive income to retained earnings, due to the Company’s cumulative change in fair value of equity securities with readily determinable fair value. Refer to Note 6. Securities for additional information.

The Company also adopted the following ASUs on October 1, 2018, none of which had a material impact on the Company’s consolidated financial statements.

– ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments

– ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash

– ASU 2017-01, Clarifying the Definition of a Business

– ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment

– ASU 2017-05, Other Income - Gains and Losses from Derecognition of Non-Financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and accounting for Partial Sales of Non-Financial Assets

– ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting

ASUs to be Adopted

Leases - ASU 2016-02, Leases (Topic 842), and related Updates (collectively Topic 842) will become effective for the Company on October 1, 2019. For lessees, Topic 842 establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with such classification affecting the pattern and classification of expense recognition in the income statement. For lessors, the guidance with Topic 842 is largely unchanged from current guidance.

A modified retrospective transition approach is required. An entity may choose to use either (1) the standard’s effective date or (2) the beginning of the earliest comparative period presented in the financial statements, as the date of initial application. The Company expects to adopt Topic 842 using the effective date, October 1, 2019, as the date of initial application. Consequently, financial information will not be updated and disclosures required under Topic 842 will not be provided for dates and periods before October 1, 2019.

FASB has released several updates to Topic 842 through subsequent ASUs, many of which allow for practical expedients in transition. The Company expects to elect the ‘package of practical expedients’, which permits the Company to not reassess under the new standard the Company’s prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements, with the latter not being applicable to the Company. The new standard also provides practical expedients for a lessee’s and lessor’s ongoing accounting. The Company expects to elect the short-term lease recognition exemption for all leases that qualify. The Company (as a lessee and lessor) also expects to elect the practical expedient to not separate lease and non-lease components for all of its leases that qualify.

As a lessee, the Company expects Topic 842 to have a material effect on its financial statements. While the Company continues to assess the effects of adoption, the Company believes the significant effects will relate to (1) recognition of ROU assets and lease liabilities on the balance sheet for the Company’s office and equipment operating leases; (2) recognition of ROU assets and lease liabilities on the balance sheet for the Company’s service contracts that meet the revised definition of a lease under Topic 842; and (3) providing significant new disclosures about the Company’s leasing activities. The Company is currently implementing a methodology and process to estimate and account for the ROU assets and lease liabilities.

As a lessor, the Company continues to assess the effects of adoption, however the Company believes the significant effects will relate to (1) earlier recognition of expense due to a narrower definition of initial direct costs; (2) gross presentation of costs excluded from contract consideration that are reimbursed by the lessee as revenue and expenses on the income statement; and (3) presentation of leasing activities on the Company’s financial statements. The Company is currently in the process of implementing a new lease accounting system, processes and procedures to reflect the new standard.

Other Upcoming ASUs - Refer to the Company’s most recently audited consolidated financial statements for the year ended September 30, 2018 for the latest update on ASUs relevant to the Company and not yet adopted as of March 31, 2019.

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ACQUISITIONS

6 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

ACQUISITIONS

ACQUISITIONS

The Company acquired Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank, on August 1, 2018 for a purchase price of $295.8 million paid by issuance of 9,919,512 shares of Meta common stock. The initial accounting for certain liabilities and goodwill were incomplete and the amounts recorded were considered provisional. The Company recognized certain measurement period adjustments as disclosed below during the three months ended March 31, 2019. The amount of goodwill recorded remains provisional, as well as the other assets and liabilities noted in the table below, as more information becomes available related to DC Solar. The measurement period remains open for the Crestmark acquisition until August 1, 2019. The following table summarizes the allocation of the purchase price to net assets of Crestmark as of the August 1, 2018 acquisition date.

(Dollars in Thousands)	Estimated fair value as previously reported(a)		Measurement period adjustments			Fair value as adjusted
Rental Equipment	$	98,977	$	(3,355	)	$	95,622
Intangible assets	28,253		(117		)	28,136
Goodwill	204,547		4,194			208,742
Accrued expenses and other liabilities	88,301		723			89,024
Net other assets	55,464		—			55,464
Noncontrolling interest	3,167		—			3,167
Purchase price	295,773		—			295,773

^(a) As previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018

Measurement Period Adjustments and Impairment - DC Solar

The Company previously purchased a portfolio of mobile solar generators ("MSGs") from DC Solar Solutions, Inc. and certain of its affiliates, a relationship in the Company's solar leasing business, and, in turn, leased the MSGs to DC Solar Distribution, Inc., an affiliate of DC Solar Solutions. During the second fiscal quarter of 2019, the Company became aware that the DC Solar entities and their affiliates filed for bankruptcy and the entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. The Company had three separate operating leases with DC Solar - two of the transactions were included in the acquired Crestmark balances on August 1, 2018. The third transaction was originated in August 2018 after the Crestmark acquisition date. The Company considered the bankruptcy filing and fraud allegations as new facts and circumstances and concluded the alleged fraud existed at the acquisition date for the acquired DC Solar transactions. As a result, the identified impairment for the acquired DC Solar transactions and other related adjustments were recorded as measurement period adjustments to the acquired assets and liability amounts recognized and were offset through provisional goodwill. The impairment and related adjustments for the DC Solar transaction originated post-acquisition are reflected in current earnings.

The Company continues to gather information about the situation and, as of the date of this filing, has identified and located 175 of 176 of the underlying assets, however the timing and extent to which the Company will be able to recover and re-lease the underlying assets remains uncertain, due in part to claims by third parties as to their potential interests in the underlying assets. The adjustments to goodwill and impairment recognized for the DC Solar events reflect the Company's best estimate of the potential loss incurred, based on the Company's present understanding of the relevant facts. Assumptions utilized in the estimate included recoverability of the MSGs and the Company's ability to re-lease them, contractual rents, and residual values. As new facts and circumstances become available, the Company will assess any remaining exposure with respect to these DC Solar matters to determine whether additional adjustments to goodwill and/or impairment loss is necessary. As long as the required criteria under GAAP are met, the Company will continue to account for adjustments to the acquired DC Solar transactions as adjustments to goodwill until the measurement period closes, which will not extend beyond August 1, 2019.

The table below reflects the net impact of the foregoing DC Solar matters, based upon the Company's present understanding of the relevant facts and circumstances, to the Company's financial statements at March 31, 2019 and for the three months ended March 31, 2019.

		Increase (Decrease)
Balance Sheet:		(Dollars in Thousands)
	Operating lease equipment	$	(12,589	)
	Goodwill	1,968
	Other assets	(394		)
	Liabilities	(4,461		)
	Total balance sheet impact	$	(6,554	)
	Regulatory capital impact	$	(8,522	)
		Income (Expense)
Income Statement:
	Rental income	$	1,633
	Other income	315
	Impairment	(9,549		)
	Income tax benefit	1,047
	Impact to net income	$	(6,554	)

Measurement Period Adjustments - Other

The Company recorded additional measurement period adjustments in the second fiscal quarter of 2019 for provisional tax and compensation liabilities assumed through the Crestmark acquisition. The Company obtained additional information about facts and circumstances existing at the Crestmark acquisition date that resulted in an increase to liabilities and goodwill recognized of $2.2 million.

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LOANS AND LEASES, NET

6 Months Ended

Mar. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

LOANS AND LEASES, NET

LOANS AND LEASES, NET

Loan and lease tables have been conformed to be consistent with the Company's updated categorization of its lending portfolio between National Lending and Community Banking.

Loans and leases at March 31, 2019 and September 30, 2018 were as follows:

	March 31, 2019			September 30, 2018
National Lending	(Dollars in Thousands)
Asset based lending	$	572,210		$	477,917
Factoring	287,955			284,221
Lease financing	321,414			265,315
Insurance premium finance	307,875			337,877
SBA/USDA	77,481			59,374
Other commercial finance	98,956			85,145
Commercial finance	1,665,891			1,509,849
Consumer credit products	139,617			80,605
Other consumer finance	170,824			189,756
Consumer finance(1)	310,441			270,361
Tax services	84,824			1,073
Warehouse finance(1)	186,697			65,000
Total National Lending	2,247,853			1,846,283
Community Banking
Commercial real estate and operating	869,917			790,890
Consumer one-to-four family real estate and other	257,079			247,318
Agricultural real estate and operating	60,167			60,498
Total Community Banking	1,187,163			1,098,706
Total gross loans and leases	3,435,016			2,944,989
Allowance for loan and lease losses	(48,672		)	(13,040		)
Net deferred loan origination fees (costs)	2,964			(250		)
Total loans and leases, net(2)	$	3,389,308		$	2,931,699

⁽¹⁾ Warehouse finance loans are presented in their own line. Previously these balances were included with consumer finance loans. Prior period balances have also been adjusted to reflect this change.

⁽²⁾ As of March 31, 2019, the remaining balance of acquired loans and leases from the Crestmark acquisition was $591.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $8.7 million and $4.5 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.8 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

During the six months ended March 31, 2019, the Company transferred $39.5 million of consumer credit product loans to held for sale and originated $43.0 million of SBA/USDA and consumer credit product loans as held for sale. The Company sold held for sale loans resulting in proceeds of $36.5 million and gains on sale of $1.7 million during the six months ended March 31, 2019. During the six months ended March 31, 2018, the Company did not designate any loans as held for sale or sell any held for sale loans.

Loans purchased and sold by portfolio segment, including participation interests, for the three and six months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended				Six Months Ended
	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Loans Purchased	(Dollars in Thousands)
Loans held for sale	$	5,940	$	—	$	5,940	$	—
Loans held for investment:
Total National Lending	10,621		—		125,591		72,751
Total Community Banking	7,432		13,823		18,513		16,235
Total purchases	23,933		13,823		150,044		88,986
Loans Sold
Loans held for sale	28,051		—		34,904		—
Loans held for investment:
Total Community Banking	10,479		3,666		10,857		9,582
Total sales	$	38,530	$	3,666	$	45,761	$	9,582

The net investment in direct financing and sales-type leases is comprised of the following as of March 31, 2019 and September 30, 2018.

	March 31, 2019			September 30, 2018
	(Dollars in Thousands)
Minimum lease payments receivable	$	366,361		$	301,835
Estimated residual value of leased equipment	11,328			12,406
Unamortized initial direct costs	4,190			1,806
Premium on acquired leases	9			26
Unearned income	(56,266		)	(48,949		)
Net investment in direct financing and sales-type leases	$	325,622		$	267,124

Future minimum lease payments receivable on noncancelable direct financing and sales-type leases were as follows as of March 31, 2019.

	As of March 31, 2019
	(Dollars in thousands)
Remaining in 2019	$	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$	366,361

The Company did not record any contingent rental income from sales-type and direct financing leases in the six months endedMarch 31, 2019.

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for each of the three and six months ended March 31, 2019 and 2018 was as follows:

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	2,065	$	1,365		$	—		$	69	$	3,499
Factoring	1,062		1,799			(1,125		)	25		1,761
Lease financing	1,084		1,671			(1,044		)	254		1,965
Insurance premium finance	972		1,797			(1,877		)	27		919
SBA/USDA	253		221			—			—		474
Other commercial finance	291		234			—			—		525
Commercial finance	5,727		7,087			(4,046		)	375		9,143
Consumer credit products	1,151		163			—			—		1,314
Other consumer finance	4,222		3,336			(2,456		)	28		5,130
Consumer finance	5,373		3,499			(2,456		)	28		6,444
Tax services	1,546		22,473			(1		)	84		24,102
Warehouse finance	176		9			—			—		185
Total National Lending	12,822		33,068			(6,503		)	487		39,874
Community Banking
Commercial real estate and operating	6,570		103			—			—		6,673
Consumer one-to-four family real estate and other	719		259			(20		)	—		958
Agricultural real estate and operating	1,179		(112		)	—			100		1,167
Total Community Banking	8,468		250			(20		)	100		8,798
Total	$	21,290	$	33,318		$	(6,523	)	$	587	$	48,672

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	107	$	3,528		$	(262	)	$	126	$	3,499
Factoring	64		3,022			(1,375		)	50		1,761
Lease financing	59		1,542			(1,462		)	1,826		1,965
Insurance premium finance	1,031		1,890			(2,085		)	83		919
SBA/USDA	13		461			—			—		474
Other commercial finance	28		497			—			—		525
Commercial finance	1,302		10,940			(5,184		)	2,085		9,143
Consumer credit products	785		529			—			—		1,314
Other consumer finance	2,820		6,359			(4,079		)	30		5,130
Consumer finance	3,605		6,888			(4,079		)	30		6,444
Tax services	—		23,969			(43		)	176		24,102
Warehouse finance	65		120			—			—		185
Total National Lending	4,972		41,917			(9,306		)	2,291		39,874
Community Banking
Commercial real estate and operating	6,220		453			—			—		6,673
Consumer one-to-four family real estate and other	632		346			(20		)	—		958
Agricultural real estate and operating	1,216		(299		)	—			250		1,167
Total Community Banking	8,068		500			(20		)	250		8,798
Total	$	13,040	$	42,417		$	(9,326	)	$	2,541	$	48,672

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	725	$	214		$	(339	)	$	146	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	729		214			(339		)	146		750
Tax services	1,435		18,129			—			9		19,573
Total National Lending	2,164		18,343			(339		)	155		20,323
Community Banking
Commercial real estate and operating	3,149		951			—			—		4,100
Consumer one-to-four family real estate and other	665		233			—			3		901
Agricultural real estate and operating	1,984		(1,273		)	—			54		765
Unallocated	900		89			—			—		989
Total Community Banking	6,698		—			—			57		6,755
Total	$	8,862	$	18,343		$	(339	)	$	212	$	27,078

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	796	$	265		$	(468	)	$	153	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	800		265			(468		)	153		750
Tax services	5		19,146			—			422		19,573
Total National Lending	805		19,411			(468		)	575		20,323
Community Banking
Commercial real estate and operating	2,820		1,280			—			—		4,100
Consumer one-to-four family real estate and other	809		120			(31		)	3		901
Agricultural real estate and operating	2,574		(1,863		)	—			54		765
Unallocated	526		463			—			—		989
Total Community Banking	6,729		—			(31		)	57		6,755
Total	$	7,534	$	19,411		$	(499	)	$	632	$	27,078

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	62	$	3,437	$	3,499	$	5,965	$	566,245	$	572,210
Factoring	12		1,749		1,761		6,034		281,921		287,955
Lease financing	67		1,898		1,965		2,299		319,115		321,414
Insurance premium finance	—		919		919		—		307,875		307,875
SBA/USDA	—		474		474		—		77,481		77,481
Other commercial finance	—		525		525		—		98,956		98,956
Commercial finance	141		9,002		9,143		14,298		1,651,593		1,665,891
Consumer credit products	—		1,314		1,314		—		139,617		139,617
Other consumer finance	—		5,130		5,130		1,236		169,588		170,824
Consumer finance	—		6,444		6,444		1,236		309,205		310,441
Tax services	—		24,102		24,102		—		84,824		84,824
Warehouse finance	—		185		185		—		186,697		186,697
Total National Lending	141		39,733		39,874		15,534		2,232,319		2,247,853
Community Banking
Commercial real estate and operating	—		6,673		6,673		—		869,917		869,917
Consumer one-to-four family real estate and other	—		958		958		134		256,945		257,079
Agricultural real estate and operating	—		1,167		1,167		1,220		58,947		60,167
Total Community Banking	—		8,798		8,798		1,354		1,185,809		1,187,163
Total	$	141	$	48,531	$	48,672	$	16,888	$	3,418,128	$	3,435,016

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment(1)		Ending balance: collectively evaluated for impairment(1)		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	107	$	107	$	1,404	$	476,513	$	477,917
Factoring	—		64		64		3,331		280,890		284,221
Lease financing	—		59		59		8,877		256,438		265,315
Insurance premium finance	—		1,031		1,031		—		337,877		337,877
SBA/USDA	—		13		13		—		59,374		59,374
Other commercial finance	—		28		28		—		85,145		85,145
Commercial finance	—		1,302		1,302		13,612		1,496,237		1,509,849
Consumer credit products	—		785		785		—		80,605		80,605
Other consumer finance	—		2,820		2,820		—		189,756		189,756
Consumer finance	—		3,605		3,605		—		270,361		270,361
Tax services	—		—		—		—		1,073		1,073
Warehouse finance	—		65		65		—		65,000		65,000
Total National Lending	—		4,972		4,972		13,612		1,832,671		1,846,283
Community Banking
Commercial real estate and operating	—		6,220		6,220		451		790,439		790,890
Consumer one-to-four family real estate and other	—		632		632		94		247,224		247,318
Agricultural real estate and operating	—		1,216		1,216		1,454		59,044		60,498
Total Community Banking	—		8,068		8,068		1,999		1,096,707		1,098,706
Total	$	—	$	13,040	$	13,040	$	15,611	$	2,929,378	$	2,944,989

⁽¹⁾ Balances have been restated from what was previously reported as of September 30, 2018 on the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2018.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's primary regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.”  The loan and lease classification and risk rating definitions are as follows:

Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.

Watch- A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures.  Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention.  These assets are of better quality than special mention assets.

Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.

The adverse classifications are as follows:

Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position.  Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected.  Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors, the asset’s classification as loss is not yet appropriate.

Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.

General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets.  When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount.  The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location.  Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the Allowance for Loan and Lease Losses.

The asset classification of loans and leases at March 31, 2019 and September 30, 2018 were as follows:

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	493,351	$	—	$	72,894	$	5,965	$	572,210
Factoring	237,880		—		44,041		6,034		287,955
Lease financing	303,742		—		14,652		3,020		321,414
Insurance premium finance	307,875		—		—		—		307,875
SBA/USDA	63,428		—		14,053		—		77,481
Other commercial finance	98,380		—		576		—		98,956
Commercial finance	1,504,656		—		146,216		15,019		1,665,891
Consumer credit products	139,617		—		—		—		139,617
Other consumer finance	170,824		—		—		—		170,824
Consumer finance	310,441		—		—		—		310,441
Tax services	84,824		—		—		—		84,824
Warehouse finance	186,697		—		—		—		186,697
Total National Lending	2,086,618		—		146,216		15,019		2,247,853
Community Banking
Commercial real estate and operating	857,897		6,672		5,348		—		869,917
Consumer one-to-four family real estate and other	253,698		2,999		306		76		257,079
Agricultural real estate and operating	43,260		5,331		3,038		8,538		60,167
Total Community Banking	1,154,855		15,002		8,692		8,614		1,187,163
Total loans and leases	$	3,241,473	$	15,002	$	154,908	$	23,633	$	3,435,016

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	418,635	$	—	$	57,877	$	1,405	$	477,917
Factoring	248,246		—		32,644		3,331		284,221
Lease financing	252,487		—		3,951		8,877		265,315
Insurance premium finance	336,296		—		1,581		—		337,877
SBA/USDA	39,093		—		20,281		—		59,374
Other commercial finance	85,145		—		—		—		85,145
Commercial finance	1,379,902		—		116,334		13,613		1,509,849
Consumer credit products	80,605		—		—		—		80,605
Other consumer finance	189,756		—		—		—		189,756
Consumer finance	270,361		—		—		—		270,361
Tax services	1,073		—		—		—		1,073
Warehouse finance	65,000		—		—		—		65,000
Total National Lending	1,716,336		—		116,334		13,613		1,846,283
Community Banking
Commercial real estate and operating	778,445		12,251		194		—		790,890
Consumer one-to-four family real estate and other	246,463		537		239		79		247,318
Agricultural real estate and operating	42,292		2,447		4,872		10,887		60,498
Total Community Banking	1,067,200		15,235		5,305		10,966		1,098,706
Total loans and leases	$	2,783,536	$	15,235	$	121,639	$	24,579	$	2,944,989

National Lending (Commercial Finance, Consumer Finance, Tax Services and Warehouse Finance)

Commercial Finance

The Company's commercial finance product lines include asset-based lending, factoring, leasing, commercial insurance premium finance, and other commercial finance products offered on a nationwide basis. Asset-based lending and factoring primarily service small businesses that are startups, distressed and/or generally that may not otherwise qualify for traditional bank financing. Leasing focuses on providing equipment finance solutions to mid-market companies. These product offerings supplement the asset generation capacity in our community bank and tax services divisions and enhance the overall yield of our loan and lease portfolio, enabling us to earn attractive risk-adjusted net interest margins.

Asset-Based Lending. Through its Crestmark division, the Bank provides asset-based loans secured by debtors' short-term assets such as inventory, accounts receivable, and work-in-process. Asset-based loans may also be secured by real estate and equipment. The primary sources of repayment are the operating income of the borrower, the collection of the receivables securing the loan, and/or the sale of the inventory securing the loan. Loans are typically revolving lines of credit with terms of one to three years, whereby the Bank withholds a contingency reserve representing the difference between the amount advanced and the fair value of the invoice amount or other collateral value. Credit risk is managed through advance rates appropriate for the collateral, standardized loan policies, established and authorized credit limits, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the debtors' cash receipts. The Bank also originates collateralized term loans and notes receivable, with terms ranging from three to 25 years.

Factoring. Through its Crestmark division, the Bank provides factoring lending where clients provide detailed inventory, accounts receivable, and work-in-process reports for lending arrangements. The factoring clients are diversified as to industry and geography. With these loans, the Crestmark division withholds a contingency reserve, which is the difference between the fair value of the invoice amount or other collateral value and the amount advanced. This reserve is withheld for nonpayment of factored receivables, service fees and other adjustments. Credit risk is managed through standardized advance policies, established and authorized credit limits, verification of receivables, attentive portfolio management and the use of lock box agreements and similar arrangements that result in the Company receiving and controlling the client's cash receipts. In addition, clients generally guarantee the payment of purchased accounts receivable.

Lease Financing. Through its Crestmark division, the Bank provides creative, flexible lease solutions for technology, capital equipment and select transportation assets like tractors and trailers. Direct financing leases and sales-type leases substantially transfer the benefits and risks of equipment ownership to the lessee.  The lease may contain provisions that transfer ownership to the lessee at the end of the initial term, contain a bargain purchase option or allow for purchase of the equipment at fair market value.  Residual values are estimated at the inception of the lease.  Lease maturities are generally no greater than 84 months. The focus in this lease financing category is to support middle market companies by providing a variety of financing products to help them meet their business objectives.

Insurance Premium Finance. Through its AFS/IBEX division the Bank provides, on a national basis, short-term, primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk, otherwise known as insurance premium financing. This includes, but is not limited to, policies for commercial property, casualty and liability risk.  Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term.  The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine to 10 months on average.  The down payment is set such that if the policy is canceled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation.

Small Business Administration ("SBA") and United States Department of Agriculture ("USDA"). The Bank originates loans through programs partially guaranteed by the SBA or USDA. These loans are made to small businesses and professionals with what the Bank believes are lower risk characteristics.

Other Commercial Finance. Included in this category of loans are the Company's healthcare receivables loan portfolio primarily comprised of loans to individuals for medical services received. The majority of these loans are guaranteed by the hospital providing the service to the debtor and this guarantee serves to reduce credit risk as the guarantors agree to repurchase severely delinquent loans. Credit risk is minimized on these loans based on the guarantor’s repurchase agreement. This loan category also includes commercial real estate loans to customers of the Crestmark division.

Consumer Finance

Consumer Credit Products. Through the acquisition of Specialty Consumer Services, the Bank acquired a platform that provides a total solution for marketplace lending, including underwriting and loan management in the direct-to-consumer credit business. The acquired platform allows the Bank to provide innovative lending solutions through consumer credit products. The Company designs and structures its credit programs in an effort to insulate the Company from program losses and to potentially increase the liquidity attributes of such lending programs' marketability to potential bank or other purchasers. While each program is different, all contain one or more types of credit enhancements, loss protections, or trigger events. When determining the applicable program enhancement, generally, the Company uses proprietary data provided by the Company’s partner, with respect to such program, supplemented with public data to design and shape appropriate loss curves, as well as implement stresses significantly higher than base to provide protection in changing credit cycles. Credit enhancements are typically built through holding excess program interest and fees in a reserve account to pay program credit losses. Cash flow waterfall positioning allows for losses and Company program principal and interest to be paid, under certain circumstances, before servicing or other program expenses. Trigger events allow programs and originations to be suspended if certain vintage loss limits, during a specific period of time, are triggered or if cumulative loss percentages are triggered. These triggers are designed to allow the Company to address potential issues quickly. Other trigger events in certain programs provide for excess credit or reserve enhancements, which could be beyond excess interest amounts, if certain loss triggers are breached. The Bank applies a reserve for loan losses of approximately 1% on outstanding loan balances within each of the consumer credit product programs.

Through March 31, 2019, the Bank has launched two consumer credit programs. During the second quarter of fiscal 2018, the Bank entered into a three-year program agreement with Liberty Lending, LLC ("Liberty Lending") whereby the Bank provides personal loans to Liberty Lending customers. The Bank and Liberty Lending market the program jointly through a wide variety of marketing channels. The loan products under the agreement with Liberty Lending are closed-end installment loans ranging from $3,500 to $45,000 in initial principal amount with durations of between 13 and 60 months.

The Bank entered into a three-year agreement with Health Credit Services ("HCS") during the third quarter of fiscal 2018. The Bank approves and originates loans for elective medical procedures for select HCS provider offices throughout the United States. HCS works with its provider partners to market the loans, as well as provide servicing for them. The loan products offered are unsecured, closed-end installment loans with terms between 12 and 84 months and revolving lines of credit with durations between six and 60 months.

Other Consumer Finance. The Bank's purchased student loan portfolios are seasoned, floating rate, private portfolios that are serviced by a third-party servicer. The portfolio purchased during the first quarter of fiscal year 2018 is indexed to one-month LIBOR, while the portfolio purchased in the first quarter of fiscal year 2017 is indexed to three-month LIBOR plus various margins. The Company received written notification on June 18, 2018 from ReliaMax Surety Company ("ReliaMax"), the company that provided insurance coverage for the student loan portfolios, which informed policy holders that the South Dakota Division of Insurance filed a petition to have ReliaMax declared insolvent and to adopt a plan of liquidation. An Order of Liquidation was entered on June 27, 2018 by the Sixth Circuit Court in Hughes County, South Dakota, declaring ReliaMax insolvent and appointing the South Dakota Division of Insurance as liquidator to adopt a plan of liquidation. The Company expects to ultimately recover a portion of the unearned premiums, which could take a year or longer.

Tax Services

The Bank's tax services division provides short-term taxpayer advance loans. Taxpayers are underwritten to determine eligibility for these unsecured loans. Due to the nature of taxpayer advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a taxpayer advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful.

Through its tax services division, the Bank provides short-term electronic return originator ("ERO") advance loans on a nationwide basis. These loans are typically utilized by tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Bank will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful.

Warehouse Finance

In fiscal 2018, the Bank entered into a first-out participation agreement in a consumer receivable asset-backed warehouse line of credit, with the Bank holding a senior collateral position enhanced by a subordinate party structure. During the first quarter of fiscal 2019, the Bank entered into two additional first-out participation agreements in asset-backed warehouse lines of credit, including consumer loan receivables and small business loan receivables. The senior collateral position of the Bank is supported by a subordinate party position.

Community Banking

Commercial Real Estate and Operating. The Company engages in commercial and multi-family real estate lending in the community bank's primary market areas and surrounding areas. These loans are secured primarily by apartment buildings, office buildings, and hotels.  Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the property securing the loan, and are typically secured by guarantees of the borrowers.  The Company has a variety of rate adjustment features and other terms in its commercial and multi-family real estate loan portfolio.  Commercial and multi-family real estate loans provide for a margin over a number of different indices.  In underwriting these loans, the Company analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan.  Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers.

The repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project.  If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.

The Company originates its community banking commercial operating loans primarily in its market areas.  Most of these commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable.  Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment.  Generally, the maximum term on non-mortgage lines of credit is one year. 

The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s management ability, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower.  Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s current credit analysis. Commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business.  As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment).  The Company’s commercial operating loans are usually secured by business assets and personal guarantees.  However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.

Consumer One-to-Four Family Real Estate and Other. One-to-four family real estate loan originations are typically generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate loans and adjustable-rate mortgage ("ARM") loans for both permanent structures and those under construction. The Company’s one-to-four family real estate loan originations are secured primarily by properties located in the community bank's primary market areas and surrounding areas.

The Company originates one-to-four family real estate loans with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the property securing the loan or the contract price. However, the vast majority of these loans are originated with loan-to-value ratios below 80%. The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level. Due to consumer demand, the Company also offers fixed-rate mortgage loans with terms up to 30 years, which may conform to secondary market standards such as those imposed by Fannie Mae, Ginnie Mae, and Freddie Mac. The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales.  The Company also currently offers five- and ten-year ARM loans.

In underwriting one-to-four family real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan.  Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors of the Company.  The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, as well as fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan.  Real estate loans originated by the Company generally contain a “due on sale” clause that allows the Company to declare the unpaid principal balance due and payable upon the sale of the security property.  The Company has not engaged in sub-prime residential mortgage originations.

The Company originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans, as well as loans secured by savings deposits in its primary market areas and surrounding areas. Substantially all of the Company’s home equity loans and lines of credit are secured by second mortgages on principal residences.  The Bank will lend amounts that, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan.  Home equity loans and lines of credit generally have maximum terms of five years.

Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower.  The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan.  Although creditworthiness of the applicant is a primary consideration, the underwriting process also may include a comparison of the value of the security, if any, in relation to the proposed loan amount.

Agricultural Real Estate and Operating. The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer, and other farm-related products, primarily in its market areas. Agricultural operating loans are originated at either an adjustable- or fixed-rate of interest for up to a one-year term or, in the case of livestock, are due upon sale. Agricultural real estate loans are frequently originated with adjustable rates of interest.  Generally, such loans provide for a fixed rate of interest for the first five to 10 years, after which the loan will balloon or the interest rate will adjust annually. These loans generally amortize over a period of 20 to 25 years. Fixed-rate agricultural real estate loans typically have terms up to 10 years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan.

Payments on loans are dependent on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. The success of the loan may also be affected by many factors outside the control of the borrower such as weather, government support programs and grain and livestock prices. These risks may be reduced, by the farmer, with the use of crop insurance coverage and futures contracts or options to mitigate price risk, both of which the Company frequently requires of the borrowers to help ensure loan repayment. Many farms are also dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm.

Past due loans and leases at March 31, 2019 and September 30, 2018 were as follows:

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	799	$	1,712	$	78	$	2,589	$	569,621	$	572,210	$	—	$	266	$	266
Factoring	—		—		—		—		287,955		287,955		—		716		716
Lease financing	9,291		1,227		1,761		12,279		309,135		321,414		645		1,802		2,447
Insurance premium finance	2,009		767		1,640		4,416		303,459		307,875		1,640		—		1,640
SBA/USDA	1,078		—		—		1,078		76,403		77,481		—		—		—
Other commercial finance	—		—		—		—		98,956		98,956		—		—		—
Commercial finance	13,177		3,706		3,479		20,362		1,645,529		1,665,891		2,285		2,784		5,069
Consumer credit products	1,080		667		420		2,167		137,450		139,617		420		—		420
Other consumer finance	1,256		504		1,853		3,613		167,211		170,824		1,853		—		1,853
Consumer finance	2,336		1,171		2,273		5,780		304,661		310,441		2,273		—		2,273
Tax services	667		—		—		667		84,157		84,824		—		—		—
Warehouse finance	—		—		—		—		186,697		186,697		—		—		—
Total National Lending	16,180		4,877		5,752		26,809		2,221,044		2,247,853		4,558		2,784		7,342
Community Banking
Commercial real estate and operating	271		—		—		271		869,646		869,917		—		—		—
Consumer one-to-four family real estate and other	110		250		76		436		256,643		257,079		—		76		76
Agricultural real estate and operating	—		—		2,200		2,200		57,967		60,167		2,200		—		2,200
Total Community Banking	381		250		2,276		2,907		1,184,256		1,187,163		2,200		76		2,276
Total Loans and Leases	$	16,561	$	5,127	$	8,028	$	29,716	$	3,405,300	$	3,435,016	$	6,758	$	2,860	$	9,618

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	1,235	$	2,151	$	94	$	3,480	$	474,437	$	477,917	$	94	$	—	$	94
Factoring	—		—		—		—		284,221		284,221		—		—		—
Lease financing	16,542		532		2,921		19,995		245,320		265,315		726		2,864		3,590
Insurance premium finance	1,864		1,019		2,981		5,864		332,013		337,877		2,981		—		2,981
SBA/USDA	1,067		—		—		1,067		58,307		59,374		—		—		—
Other commercial finance	—		—		—		—		85,145		85,145		—		—		—
Commercial finance	20,708		3,702		5,996		30,406		1,479,443		1,509,849		3,801		2,864		6,665
Consumer credit products	532		284		147		963		79,642		80,605		147		—		147
Other consumer finance	2,677		1,311		2,237		6,225		183,531		189,756		2,237		—		2,237
Consumer finance	3,209		1,595		2,384		7,188		263,173		270,361		2,384		—		2,384
Tax services	—		—		1,073		1,073		—		1,073		1,073		—		1,073
Warehouse finance	—		—		—		—		65,000		65,000		—		—		—
Total National Lending	23,917		5,297		9,453		38,667		1,807,616		1,846,283		7,258		2,864		10,122
Community Banking
Commercial real estate and operating	—		—		—		—		790,890		790,890		—		—		—
Consumer one-to-four family real estate and other	105		—		79		184		247,134		247,318		79		—		79
Agricultural real estate and operating	—		—		—		—		60,498		60,498		—		—		—
Total Community Banking	105		—		79		184		1,098,522		1,098,706		79		—		79
Total Loans and Leases	$	24,022	$	5,297	$	9,532	$	38,851	$	2,906,138	$	2,944,989	$	7,337	$	2,864	$	10,201

Certain loans and leases 89 days or more past due as to interest or principal continue to accrue because they are (1) well-secured and in the process of collection or (2) one-to-four family real estate loans or consumer loans exempt under regulatory rules from being classified as non-accrual until later delinquency, usually 120 days past due.

When analysis of borrower or lessee operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan or lease is evaluated for impairment.  Often, this is associated with a delay or shortfall in scheduled payments, as described above.

Impaired loans and leases at March 31, 2019 and September 30, 2018 were as follows:

March 31, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	4,887	$	5,399	$	—
Factoring	6,009		7,084		—
Lease financing	2,209		2,209		—
Commercial finance	13,105		14,692		—
Other consumer finance	1,236		1,304		—
Consumer finance	1,236		1,304		—
Total National Lending	14,341		15,996		—
Community Banking
Consumer one-to-four family real estate and other	134		153		—
Agricultural real estate and operating	1,220		1,220		—
Total Community Banking	1,354		1,373		—
Total	$	15,695	$	17,370	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	1,078	$	1,078	$	62
Factoring	25		25		12
Lease financing	90		90		67
Commercial finance	1,193		1,193		141
Total National Lending	1,193		1,193		141
Total	$	1,193	$	1,193	$	141

September 30, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	1,325	$	1,325	$	—
Factoring	1,383		1,713		—
Lease financing	5,491		5,491		—
Commercial finance	8,199		8,529		—
Total National Lending	8,199		8,529		—
Community Banking	405		405		—
Commercial real estate and operating	140		140		—
Consumer one-to-four family real estate and other	1,454		1,454		—
Agricultural real estate and operating	1,999		1,999		—
Total	$	10,198	$	10,528	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	79	$	79	$	22
Factoring	1,948		2,198		49
Lease financing	3,386		3,386		517
Commercial finance	5,413		5,663		588
Total National Lending	5,413		5,663		588
Total	$	5,413	$	5,413	$	588

The following table provides the average recorded investment in impaired loans and leases for the three and sixmonth periods ended March 31, 2019 and 2018.

Three Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	3,569	$	95	$	—	$	—
Factoring	3,131		—		—		—
Lease financing	4,100		7		—		—
Commercial finance	10,800		102		—		—
Other consumer finance	1,232		10		—		—
Consumer finance	1,232		10		—		—
Total National Lending	12,032		112		—		—
Community Banking
Commercial real estate and operating	268		—		705		5
Consumer one-to-four family real estate and other	137		—		229		6
Agricultural real estate and operating	1,414		10		1,680		50
Total Community Banking	1,819		10		2,614		61
Total loans and leases	$	13,851	$	122	$	2,614	$	61

Six Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	2,648	$	174	$	—	$	—
Factoring	2,956		5		—		—
Lease financing	5,842		17		—		—
Commercial finance	11,446		196		—		—
Other consumer finance	1,227		10		—		—
Consumer finance	1,227		10		—		—
Total National Lending	12,673		206		—		—
Community Banking
Commercial real estate and operating	336		4		840		10
Consumer one-to-four family real estate and other	138		2		165		9
Agricultural real estate and operating	1,443		35		1,015		64
Total Community Banking	1,917		41		2,020		83
Total loans and leases	$	14,590	$	247	$	2,020	$	83

The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. There were $1.5 million of national lending loans and leases that were modified in a TDR during the three months ended March 31, 2019, all of which were modified to extend the term of the loan, and no community banking loans that were modified in a TDR. There were $2.6 million of community banking loans that were modified in a TDR during the three months ended March 31, 2018.

There were $1.6 million of national lending loans and leases and $0.1 million of community banking loans that were modified in a TDR during the six months ended March 31, 2019, all of which were modified to extend the term of the loan. There were $3.8 million of community banking loans that were modified in a TDR during the six months ended March 31, 2018. During the six months ended March 31, 2019, the Company had $0.9 million of community banking loans that were modified as a TDR within the previous 12 months and for which there was a payment default. During the six months ended March 31, 2018, the Company had $0.1 million of community banking loans that were modified as a TDR within the previous 12 months and for which there was a payment default.

At March 31, 2019, foreclosed and repossessed assets totaled $29.5 million, compared to $31.6 million at September 30, 2018. There were no impairments on or valuation allowances established for any foreclosed and repossess assets at either date. The Company did not have any loans or leases in the process of foreclosure at March 31, 2019.

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EARNINGS PER COMMON SHARE

6 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

EARNINGS PER COMMON SHARE

EARNINGS PER COMMON SHARE

Earnings per common share is computed after deducting any preferred dividends, if applicable. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation. Basic earnings per common share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in earnings per share calculations. The share and per share amounts for fiscal year 2018 have been restated to reflect the 3-for-1 forward stock split of the Company's common stock that was effected by the Company on October 4, 2018.

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and six months ended March 31, 2019 and 2018 is presented below.

Three Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Basic income per common share	0.81		1.08
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Outstanding options - based upon the two-class method	67,237		118,956
Weighted average diluted common shares outstanding	39,496,832		29,180,136
Diluted income per common share	0.81		1.08

Six Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Basic income per common share	1.21		1.24
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Outstanding options - based upon the two-class method	68,581		115,038
Weighted average diluted common shares outstanding	39,450,263		29,130,414
Diluted income per common share	1.20		1.24

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SECURITIES

6 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

SECURITIES

SECURITIES

On October 1, 2018, the Company adopted ASU 2016-01 on a prospective basis, which redefined the definition of equity securities and required their segregation from available for sale debt securities. While changes in the fair value of debt securities continue to be recorded in the equity category of accumulated other comprehensive income, the new guidance requires that changes in fair value of equity securities with readily determinable fair value be recorded in current earnings. As required by the new guidance, the unrealized gain in fair value on equity securities with readily determinable fair value (recorded in accumulated other comprehensive income at September 30, 2018) was reclassified to retained earnings on October 1, 2018. The amount of the reclassification was $0.5 million, net of tax. Equity securities with readily determinable fair value include mutual funds of $1.8 million at cost and $1.9 million at fair value at March 31, 2019.

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities at March 31, 2019 and September 30, 2018 are presented below.

At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	163,621	$	637	$	(155	)	$	164,103
Obligations of states and political subdivisions	11,432		106		(9		)	11,529
Non-bank qualified obligations of states and political subdivisions	629,732		1,357		(9,447		)	621,642
Asset-backed securities	284,701		1,286		(1,598		)	284,389
Mortgage-backed securities	419,024		1,064		(6,595		)	413,493
Total debt securities AFS	$	1,508,510	$	4,450	$	(17,804	)	$	1,495,156
Common equities and mutual funds(1)(2)	$	3,592	$	619	$	—		$	4,211

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	45,591	$	1	$	(1,255	)	$	44,337
Obligations of states and political subdivisions	17,154		49		(293		)	16,910
Non-bank qualified obligations of states and political subdivisions	1,140,884		826		(31,825		)	1,109,885
Asset-backed securities	310,700		2,585		(257		)	313,028
Mortgage-backed securities	378,301		—		(14,236		)	364,065
Total debt securities AFS	$	1,892,630	$	3,461	$	(47,866	)	$	1,848,225
Common equities and mutual funds(1)	3,172		635		(7		)	3,800
Total AFS securities(1)	$	1,895,802	$	4,096	$	(47,873	)	$	1,852,025

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held to Maturity
At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	146,992	$	—	$	(5,224	)	$	141,768
Mortgage-backed securities	7,606		—		(210		)	7,396
Total held to maturity securities	$	154,598	$	—	$	(5,434	)	$	149,164

At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	163,893	$	—	$	(10,758	)	$	153,135
Mortgage-backed securities	7,850		—		(422		)	7,428
Total held to maturity securities	$	171,743	$	—	$	(11,180	)	$	160,563

Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary.  This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.

For all securities considered temporarily impaired, the Company does not intend to sell these securities, and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.

GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: AFS, HTM or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company did not have any trading securities at March 31, 2019 or September 30, 2018.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and September 30, 2018, were as follows:

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	41,845	$	(29	)	$	27,214	$	(126	)	$	69,059	$	(155	)
Obligations of states and political subdivisions	—		—			2,052		(9		)	2,052		(9		)
Non-bank qualified obligations of states and political subdivisions	10,210		(2		)	448,680		(9,445		)	458,890		(9,447		)
Asset-backed securities	148,254		(1,539		)	12,184		(59		)	160,438		(1,598		)
Mortgage-backed securities	32,722		(13		)	282,789		(6,582		)	315,511		(6,595		)
Total debt securities AFS	$	233,031	$	(1,583	)	$	772,919	$	(16,221	)	$	1,005,950	$	(17,804	)
Common equities and mutual funds(1)(2)	—		—			—		—			—		—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	43,097	$	(1,255	)	$	—	$	—		$	43,097	$	(1,255	)
Obligations of state and political subdivisions	11,036		(279		)	881		(14		)	11,917		(293		)
Non-bank qualified obligations of states and political subdivisions	626,693		(13,539		)	358,095		(18,286		)	984,788		(31,825		)
Asset-backed securities	146,638		(257		)	—		—			146,638		(257		)
Mortgage-backed securities	121,217		(3,292		)	242,849		(10,944		)	364,066		(14,236		)
Total debt securities AFS	$	948,681	$	(18,622	)	$	601,825	$	(29,244	)	$	1,550,506	$	(47,866	)
Common equities and mutual funds(1)	1,818		(7		)	—		—			1,818		(7		)
Total debt AFS securities(1)	$	950,499	$	(18,629	)	$	601,825	$	(29,244	)	$	1,552,324	$	(47,873	)

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held To Maturity	LESS THAN 12 MONTHS				OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)		Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	—	$	—	$	141,768	$	(5,225	)	$	141,768	$	(5,225	)
Mortgage-backed securities	—		—		7,396		(210		)	7,396		(210		)
Total held to maturity securities	$	—	$	—	$	149,164	$	(5,435	)	$	149,164	$	(5,435	)

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	5,767	$	(287	)	$	147,368	$	(10,471	)	$	153,135	$	(10,758	)
Mortgage-backed securities	—		—			7,428		(422		)	7,428		(422		)
Total held to maturity securities	$	5,767	$	(287	)	$	154,796	$	(10,893	)	$	160,563	$	(11,180	)

At March 31, 2019, the investment portfolio included securities with current unrealized losses that have existed for longer than one year.  All of these securities are considered to be acceptable credit risks. Because (i) the declines in fair value were due to changes in market interest rates, not in estimated cash flows, (ii) the Company does not intend or has not made a decision to sell these securities and (iii) it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at March 31, 2019.

The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below 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 mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain housing related municipal securities, SBA and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Securities at Fair Value	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)
Due in one year or less	$	1,020	$	1,019
Due after one year through five years	15,058		15,285
Due after five years through ten years	64,894		65,335
Due after ten years	1,008,514		1,000,024
	1,089,486		1,081,663
Mortgage-backed securities	419,024		413,493
Total securities at fair value	$	1,508,510	$	1,495,156

	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due in one year or less	$	2,532	$	2,529
Due after one year through five years	41,415		41,504
Due after five years through ten years	352,099		350,143
Due after ten years	1,118,283		1,089,984
	1,514,329		1,484,160
Mortgage-backed securities	378,301		364,065
Common equities and mutual funds(1)	3,172		3,800
Total securities at fair value	$	1,895,802	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held To Maturity	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)
Due after ten years	$	146,992	$	141,768
	146,992		141,768
Mortgage-backed securities	7,606		7,396
Total held to maturity securities at cost	$	154,598	$	149,164

	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due after ten years	$	163,893	$	153,135
	163,893		153,135
Mortgage-backed securities	7,850		7,428
Total held to maturity securities at cost	$	171,743	$	160,563

Other investments, at cost, which are included in other assets on the consolidated statement of financial condition, include equity securities without a readily determinable fair value and shares of stock in the Federal Home Loan Bank ("FHLB") of Des Moines. Equity securities without a readily determinable fair value totaled $2.4 million at March 31, 2019 and $2.0 million at September 30, 2018, respectively. FHLB of Des Moines stock at March 31, 2019 and September 30, 2018 totaled $7.4 million and $23.4 million, respectively. The decrease in FHLB stock directly correlates with lower short-term borrowings balances at March 31, 2019 compared to September 30, 2018. The Company’s wholly-owned subsidiary, MetaBank, is required by federal law to maintain FHLB stock as a member of FHLB of Des Moines. 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, FHLB stock is 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. No impairment was recognized for such investments for the six months ended March 31, 2019.

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RENTAL EQUIPMENT, NET

6 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

RENTAL EQUIPMENT, NET

RENTAL EQUIPMENT, NET

Rental equipment was as follows as of March 31, 2019 and September 30, 2018.

	March 31, 2019			September 30, 2018
	(Dollars in thousands)
Computers and IT networking equipment	$	43,896		$	53,035
Motor vehicles and other	59,589			43,505
Office furniture and equipment	3,409			3,590
Solar panels and equipment	81,498			57,242
Total	188,392			157,372
Accumulated depreciation	(48,305		)	(50,082		)
Net book value	$	140,087		$	107,290

During the second quarter of fiscal year 2019, an impairment was recorded related to solar panels and equipment. Please refer to Note 3 for further discussion.

Future minimum lease payments receivable on equipment under operating leases was as follows as of March 31, 2019.

	March 31, 2019
	(Dollars in thousands)
2019	$	12,849
2020	20,737
2021	16,290
2022	10,135
2023	8,220
2024 and thereafter	10,164
Total	$	78,395

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GOODWILL AND INTANGIBLE ASSETS

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND INTANGIBLE ASSETS

GOODWILL AND INTANGIBLE ASSETS

The Company held a total of $307.5 million of goodwill as of March 31, 2019. The recorded goodwill is a result of multiple business combinations that have occurred since fiscal year 2015, the most recent being the merger with Crestmark pursuant to the Crestmark acquisition that closed on August 1, 2018. Goodwill is assessed for impairment at a reporting unit level, which is one level below the operating segments.

The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months endedMarch 31, 2019 and 2018 were as follows:

	Payments		Banking		Corporate Services/Other		Total
Goodwill	(Dollars in Thousands)
September 30, 2018	$	87,145	$	216,125	$	—	$	303,270
Acquisitions	—		—		—		—
Measurement Period Adjustments (1)	—		4,194		—		4,194
Impairment	—		—		—		—
March 31, 2019	$	87,145	$	220,319	$	—	$	307,464
September 30, 2017	$	87,145	$	11,578	$	—	$	98,723
Acquisitions	—		—		—		—
Impairment	—		—		—		—
March 31, 2018	$	87,145	$	11,578	$	—	$	98,723

⁽¹⁾ The Company recognized measurement period adjustments on provisional goodwill during the second fiscal quarter of 2019 related to the Crestmark acquisition. Refer to Note 3. Acquisitions.

	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2018	$	12,987		$	1,297		$	48,455		$	7,980		$	70,719
Acquisitions during the period	—			—			—			78			78
Amortization during the period	(514		)	(235		)	(8,742		)	(487		)	(9,978		)
Write-offs during the period	—			—			—			(313		)	(313		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506
Gross carrying amount	$	14,624		$	2,480		$	82,088		$	10,667		$	109,859
Accumulated amortization	(2,151		)	(1,418		)	(32,127		)	(2,750		)	(38,446		)
Accumulated impairment	—			—			(10,248		)	(659		)	(10,907		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

⁽¹⁾ Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3-5 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2017	$	10,051		$	1,782		$	31,707		$	8,638		$	52,178
Acquisitions during the period	—			—			—			47			47
Amortization during the period	(319		)	(249		)	(3,388		)	(456		)	(4,412		)
Write-offs during the period	—			—			—			(89		)	(89		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724
Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,550		$	81,830
Accumulated amortization	(1,258		)	(947		)	(19,243		)	(1,792		)	(23,240		)
Accumulated impairment	—			—			(10,248		)	(618		)	(10,866		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

⁽¹⁾ Book amortization period of 15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining six months of fiscal 2019 and subsequent fiscal years is as follows:

	(Dollars in Thousands)
Remaining in 2019	$	7,731
2020	10,984
2021	8,525
2022	6,399
2023	5,081
2024	4,363
Thereafter	17,423
Total anticipated intangible amortization	$	60,506

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment.  There was $0.1 million in impairments to intangible assets during the three and six months ended March 31, 2019 and no impairments to intangible assets during the three and six months ended March 31, 2018.

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STOCK COMPENSATION

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

STOCK COMPENSATION

STOCK COMPENSATION

The Company maintains the amended and restated Meta Financial Group, Inc. 2002 Omnibus Incentive Plan, as amended (the "2002 Omnibus Incentive Plan"), which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of options or fair value of non-vested (restricted) shares granted under the Company’s incentive plan is equal to the fair market value of the underlying stock at the grant date. The Company has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur.

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the six months ended March 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Yrs)	Aggregate Intrinsic Value
	(Dollars in Thousands, Except Per Share Data (1))
Options outstanding, September 30, 2018	155,961		$	8.48	1.78	$	2,974
Granted	—		—		—	—
Exercised	(45,132	)	8.95		—	742
Forfeited or expired	(3,027	)	10.60		—	33
Options outstanding, March 31, 2019	107,802		$	8.23	1.47	$	1,235
Options exercisable, March 31, 2019	107,802		$	8.23	1.47	$	1,235

	Number of Shares		Weighted Average Fair Value at Grant
(Dollars in Thousands, Except Per Share Data (1))
Nonvested (restricted) shares outstanding, September 30, 2018	1,005,813		$	29.89
Granted	296,302		24.84
Vested	(347,354	)	26.78
Forfeited or expired	(1,623	)	26.17
Nonvested (restricted) shares outstanding, March 31, 2019	953,138		$	29.46

⁽¹⁾ All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

At March 31, 2019, stock-based compensation expense not yet recognized in income totaled $15.8 million, which is expected to be recognized over a weighted average remaining period of 3.11 years.

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INCOME TAXES

6 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

INCOME TAXES

INCOME TAXES

The Company recorded an income tax benefit of $2.1 million for the six months ended March 31, 2019, resulting in an effective tax rate of (4.40%), compared to an income tax expense of $12.2 million, or an effective tax rate of 25.31%, for the six months ended March 31, 2018. The Company’s effective tax rate is lower than the U.S. statutory rate of 21% primarily because of the anticipated effect of investment tax credits during fiscal year 2019. The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

The table below compares the income tax expense components for the periods presented.

Six Months Ended March 31,	2019			2018
(Dollars in Thousands)
Provision at statutory rate	$	9,541		$	11,857
Tax-exempt income	(1,824		)	(3,728		)
State income taxes	2,143			2,003
Interim period effective rate adjustment	(3,968		)	(1,277		)
Tax credit investments, net - federal	(9,568		)	—
Tax Reform rate adjustment	—			3,635
IRC 162(m) nondeductible compensation	1,561			—
Other, net	29			(258		)
Income tax expense	$	(2,086	)	$	12,232
Effective tax rate	(4.40		%)	25.31		%

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COMMITMENTS AND CONTINGENCIES

6 Months Ended

Mar. 31, 2019

Commitments and Contingencies Disclosure [Abstract]

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

In the normal course of business, the Bank makes various commitments to extend credit that are not reflected in the accompanying Consolidated Financial Statements.

At March 31, 2019 and September 30, 2018, unfunded loan commitments approximated $860.4 million and $748.8 million, respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract.

The Company had no commitments to purchase securities at March 31, 2019 and $1.4 million in commitments to purchase securities at September 30, 2018. The Company had no commitments to sell securities at March 31, 2019 or September 30, 2018.

The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. At March 31, 2019 and at September 30, 2018, the Company had an allowance for credit losses on off-balance sheet credit exposures of $0.1 million. This amount is maintained as a separate liability account within other liabilities.

Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments.  In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.

As disclosed in Note 3. Acquisitions, the Company continues to monitor the bankruptcy proceedings and federal investigations of DC Solar. As of the date of the filing of this quarterly report, the Company has not accrued for any additional loss contingencies related to DC Solar as of March 31, 2019.

Legal Proceedings

The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both Inter National Bank ("INB") and MetaBank. According to the Petition, NetSpend has informed INB that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of its position. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs were wound down, there were two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4.0 million. The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

On February 9, 2018, the Bank’s AFS/IBEX division filed a lawsuit in the United States District Court for the Eastern District of New York captioned AFS/IBEX, a division of MetaBank v. Aegis Managing Agency Limited ("AMA"), Aegis Syndicate 1225 (together with AMA, the "Aegis defendants"), CRC Insurance Services, Inc. ("CRC"), and Transportation Underwriters, Inc. The suit was filed against commercial insurance underwriters and brokers that facilitated the issuance of commercial insurance policies to Red Hook Construction Group-II, LLC (“Red Hook”). The Bank’s position is that both CRC and Transportation Underwriters represented to the Bank that, upon cancellation of the insurance policies prior to their stated terms, any unearned premiums would be refunded. The Bank then provided insurance premium financing to Red Hook, and Red Hook executed a written premium finance agreement pursuant to which Red Hook assigned its rights to any unearned premiums to the Bank. After the policies were cancelled, the Aegis defendants failed to return the unearned insurance premiums totaling just over $1.6 million owed to the Bank under the insurance policies and the premium finance agreement. The Bank is seeking recovery of all amounts to which it is entitled at law or equity and intends to vigorously pursue its claims against the defendants.

The Bank was served on December 24, 2018, with a lawsuit captioned The Ohio Valley Bank Company v. MetaBank dba Refund Advantage, Case No. 18 CV 134 in the Court of Common Pleas, Gallia County, Ohio. This action alleges that MetaBank breached a contract with The Ohio Valley Bank Company by terminating the contract before the term expired, resulting in over $3.0 million in damages. The Bank intends to vigorously defend this claim. The Company has established an accrual for this related claim.

From time to time, the Company or its subsidiaries are subject to certain legal proceedings and claims in the ordinary course of business. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position or its results of operations, legal proceedings are inherently uncertain and unfavorable resolution of some or all of these matters could, individually or in the aggregate, have a material adverse effect on the Company’s and its subsidiaries’ respective businesses, financial condition or results of operations.

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REVENUE FROM CONTRACTS WITH CUSTOMERS

6 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

REVENUE FROM CONTRACTS WITH CUSTOMERS

REVENUE FROM CONTRACTS WITH CUSTOMERS

On October 1, 2018, the Company adopted Topic 606 on a modified retrospective basis. Prior period amounts have not been adjusted to reflect the adoption of Topic 606 and continue to be reported in accordance with the Company’s historical accounting policies. The impact of the Company’s adoption of Topic 606 was limited to the MPS division within the Payments reporting segment. Upon adoption, Meta recorded a cumulative-effect adjustment that increased retained earnings by $1.5 million, net of tax.

Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Consolidated Financial Statements.

(Dollars in thousands)	Payments				Banking					Corporate Services/Other					Consolidated Company
Three Months Ended March 31,	2019		2018		2019			2018		2019		2018			2019			2018
Net interest income(1)	$	13,607	$	4,933	$	56,271		$	16,120	$	1,472	$	6,352		$	71,350		$	27,405
Noninterest income:
Refund transfer product fees	31,601		33,803		—			—		—		—			31,601			33,803
Tax advance product fees(1)	33,038		33,838		—			—		—		—			33,038			33,838
Card fees	22,960		26,771		92			85		—		—			23,052			26,856
Rental income(1)	—		—		9,890			—		—		—			9,890			—
Loan and lease fees(1)	—		—		925			1,042		—		—			925			1,042
Bank-owned life insurance(1)	—		—		—			—		631		650			631			650
Deposit fees	1,711		879		382			103		—		—			2,093			982
Gain (loss) on sale of securities available-for-sale, net(1)	—		—		—			—		231		(166		)	231			(166		)
Gain on sale of loans and leases(1)	—		—		1,085			—		—		—			1,085			—
Loss on foreclosed real estate(1)	—		—		(200		)	—		—		—			(200		)	—
Other income(1)	442		382		1,774			11		463		21			2,679			414
Total noninterest income	89,752		95,673		13,948			1,241		1,325		505			105,025			97,419
Revenue	$	103,359	$	100,606	$	70,219		$	17,361	$	2,797	$	6,857		$	176,375		$	124,824

⁽¹⁾ These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

(Dollars in thousands)	Payments				Banking						Corporate Services/Other					Consolidated Company
Six Months Ended March 31,	2019		2018		2019			2018			2019		2018			2019			2018
Net interest income(1)	$	23,007	$	9,602	$	108,063		$	31,717		$	552	$	12,282		$	131,622		$	53,601
Noninterest income:
Refund transfer product fees	31,862		33,995		—			—			—		—			31,862			33,995
Tax advance product fees(1)	34,723		35,785		—			—			—		—			34,723			35,785
Card fees	42,233		51,945		170			158			—		—			42,403			52,103
Rental income(1)	—		—		20,780			—			—		—			20,780			—
Loan and lease fees(1)	—		—		2,173			2,334			—		—			2,173			2,334
Bank-owned life insurance(1)	—		—		—			—			1,273		1,319			1,273			1,319
Deposit fees	3,245		1,607		786			223			—		—			4,031			1,830
Gain (loss) on sale of securities available-for-sale, net(1)	—		—		—			—			209		(1,176		)	209			(1,176		)
Gain on sale of loans and leases(1)	—		—		1,951			—			—		—			1,951			—
Loss on foreclosed real estate(1)	—		—		(185		)	(19		)	—		—			(185		)	(19		)
Other income(1)	515		442		2,542			30			499		44			3,556			516
Total noninterest income	112,578		123,774		28,217			2,726			1,981		187			142,776			126,687
Revenue	$	135,585	$	133,376	$	136,280		$	34,443		$	2,533	$	12,469		$	274,398		$	180,288

⁽¹⁾ These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period, therefore the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities.

Refund Transfer Product Fees

Refund transfer fees are specific to the tax products offered by Refund Advantage and EPS. These fees are for products, services such as payment processing, and product referral commissions. Software partner fees paid and/or incurred are recorded on a net basis. The Company’s obligation for product fees and commissions is satisfied at the time of the product delivery and obligation for payment processing is satisfied at the time of processing. The transaction price for such activity is based upon stand-alone fees within the terms and conditions. As of March 31, 2019, there were no receivables related to refund transfer fees, which reflect earned revenue with unconditional rights to payment for product fee income, while as of September 30, 2018, there were $827,039 of such receivables. All refund transfer fees are recorded within the Payments reporting segment.

Card Fees

Card fees relate to MPS, retail bank, Refund Advantage and EPS products. These fees are for products and services such as card activation, product support, processing, and servicing. The Company earns these fees based upon the underlying terms and conditions with each cardholder over the contract term. Agreements with the Company’s cardholders are considered daily service contracts as they are not fixed in duration. The Company’s obligation for card activation and product support fees is satisfied at the time of product delivery, while the obligation for processing and servicing is satisfied over the course of each month. The transaction price for such activity is based upon the stand-alone fees within the terms and conditions of the cardholder agreements. Card fee revenue also includes income from sponsorships, associations and networks, and interchange income. Sponsorship income relates to fees charged to the Company’s ATM sponsorship partners, where the obligation is satisfied over the course of each month. Association and network income reflect incentives, performance bonuses and rebates with MasterCard and Visa. The obligation for such income is satisfied at the time when certain thresholds of transaction volume have been met. Interchange income is generated by cardholder activity, and therefore the Company’s obligations are satisfied as activity occurs. The transaction price for such activity is based on underlying rates and activity thresholds within the terms and conditions of the applicable agreements. Card fee revenue also includes breakage revenue. Breakage represents the estimated amount that will not be redeemed by the holder of unregistered, unused prepaid cards for goods or services. Breakage revenue is recognized ratably over the expected customer usage period and is an estimate based on cardholder behavior and breakage rates. Breakage is also impacted by escheatment laws. Card fees are recorded within the Payments and Banking reporting segments.

Deposit Fees

Fees are earned on depository accounts for commercial and consumer customers and include fees for account services, overdraft services, safety deposit box rentals, and event-driven services (i.e. returned checks, ATM surcharge, card replacement, wire transfers, and stop pays). The Company’s obligation for event-driven services is satisfied at the time of the event when the service is delivered, while its obligation for account services is satisfied over the course of each month. The Company’s obligation for overdraft services is satisfied at the time of overdraft. The transaction price for such activity is based upon stand-alone fees within the terms and conditions of the deposit agreements. Deposit fees are recorded within the Payments and Banking reporting segment.

Principal vs Agent

The Payments reporting segment includes principal/agent relationships. Within this segment, MPS relationships are recorded on a gross basis within the income statement, as Meta is the principal in the contract, with the exception of association/network contracts and partner/processer contracts for prepaid cards, which are recorded on a net basis within the income statement as Meta is the agent in these contracts. Also within this segment, Tax service relationships are recorded on a gross basis within the income statement, as Meta is the principal in the contract, with the exception of contracts with software providers and merchants, which are recorded on a net basis within the income statement as Meta is the agent in these contracts.

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FAIR VALUE MEASUREMENTS

6 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

FAIR VALUE MEASUREMENTS

FAIR VALUE MEASUREMENTS

Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement.  It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.

The fair value hierarchy is as follows:

Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs - Valuation is based upon (1) quoted prices for similar instruments in active markets, (2) quoted prices for identical or similar instruments in markets that are not active and (3) model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available.  These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Debt Securities Available for Sale and Equity Securities.  Debt securities available for sale and equity securities are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds and corporate debt securities.  The Company had no Level 3 securities at March 31, 2019 or September 30, 2018.

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology, and the third party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third party provider include but are not limited to pricing models that vary based by asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

The following table summarizes the fair values of debt securities available for sale and equity securities at March 31, 2019 and September 30, 2018, as they are measured at fair value on a recurring basis.

	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	164,103	$	—	$	164,103	$	—
Obligations of states and political subdivisions	11,529		—		11,529		—
Non-bank qualified obligations of states and political subdivisions	621,642		—		621,642		—
Asset-backed securities	284,389		—		284,389		—
Mortgage-backed securities	413,493		—		413,493		—
Total debt securities AFS	1,495,156		—		1,495,156		—
Common equities and mutual funds(1)(2)	$	4,211	$	4,211	$	—	$	—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

	Fair Value At September 30, 2018
	Available For Sale
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	44,337	$	—	$	44,337	$	—
Obligations of states and political subdivisions	16,910		—		16,910		—
Non-bank qualified obligations of states and political subdivisions	1,109,885		—		1,109,885		—
Asset-backed securities	313,028		—		313,028		—
Mortgage-backed securities	364,065		—		364,065		—
Total debt securities AFS	1,848,225		—		1,848,225		—
Common equities and mutual funds(1)	3,800		3,800		—		—
Total securities	$	1,852,025	$	3,800	$	1,848,225	$	—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

The Company did not transfer any AFS debt securities or equity securities between fair value hierarchy categories at March 31, 2019 or September 30, 2018.

Loans and Leases.  The Company does not record loans and leases at fair value on a recurring basis.  If a loan or lease is identified as individually impaired, management then measures impairment in accordance with ASC 310, Receivables. See Note 4 Loans and Leases, Net for further information.

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2019 and September 30, 2018.

	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	1,218	$	—	$	—	$	1,218
Factoring	13		—		—		13
Lease Financing	23		—		—		23
Commercial finance	1,254		—		—		1,254
Total National Lending	1,254		—		—		1,254
Total Impaired Loans and Leases	1,254		—		—		1,254
Foreclosed Assets, net	29,548		—		—		29,548
Total	$	30,802	$	—	$	—	$	30,802

	Fair Value At September 30, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired loans and leases, net
Asset Based Lending	$	57	$	—	$	—	$	57
Factoring	1,899		—		—		1,899
Lease Financing	2,869		—		—		2,869
Commercial finance	4,825		—		—		4,825
Total National Lending	4,825		—		—		4,825
Total impaired loans and leases	4,825		—		—		4,825
Foreclosed assets, net	31,638		—		—		31,638
Total	$	36,463	$	—	$	—	$	36,463

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at March 31, 2019		Fair Value at September 30, 2018	Valuation Technique	Unobservable Input	Range of Inputs
Impaired loans and leases, net	$	1,254	4,825	Market approach	Appraised values (1)	4.00 - 10.00%
Foreclosed Assets, net	$	29,548	31,638	Market approach	Appraised values (1)	4.00 - 10.00%

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

The following table discloses the Company’s estimated fair value amounts of its financial instruments as of the dates set forth below.  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, 2019 and September 30, 2018, 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, 2019 and September 30, 2018.

	March 31, 2019
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	156,461	$	156,461	$	156,461	$	—	$	—
Debt securities available for sale	1,495,156		1,495,156		—		1,495,156		—
Debt securities held to maturity	154,598		149,164		—		149,164		—
Equity securities (1)	4,211		4,211		4,211		—		—
Total securities	1,653,965		1,648,531		4,211		1,644,320		—
Loans held for sale	59,745		59,745		—		59,745		—
Loans and leases:
Asset based lending	572,210		551,579		—		—		551,579
Factoring	287,955		283,337		—		—		283,337
Lease financing	321,414		320,411		—		—		320,411
Insurance premium finance	307,875		307,732		—		—		307,732
SBA/USDA	77,481		74,407		—		—		74,407
Other commercial finance	98,956		100,038		—		—		100,038
Commercial finance	1,665,891		1,637,504		—		—		1,637,504
Consumer credit products	139,617		138,748		—		—		138,748
Other consumer finance	170,824		166,925		—		—		166,925
Consumer finance	310,441		305,673		—		—		305,673
Tax services	84,824		60,722		—		—		60,722
Warehouse finance	186,697		186,764		—		—		186,764
Total National Lending	2,247,853		2,190,663		—		—		2,190,663
Commercial real estate and operating	869,917		861,524		—		—		861,524
Consumer one to four family real estate and other	257,079		254,642		—		—		254,642
Agricultural real estate and operating	60,167		58,454		—		—		58,454
Total Community Banking	1,187,163		1,174,620		—		—		1,174,620
Total loans and leases	3,435,016		3,365,283		—		—		3,365,283
Federal Home Loan Bank stock	7,436		7,436		—		7,436		—
Accrued interest receivable	20,281		20,281		20,281		—		—
Financial liabilities
Noninterest-bearing demand deposits	3,034,428		3,034,428		3,034,428		—		—
Interest-bearing demand deposits, savings, and money markets	300,033		300,033		300,033		—		—
Certificates of deposits	154,401		153,951		—		153,951		—
Wholesale non-maturing deposits	207,795		207,795		207,795		—		—
Wholesale certificates of deposits	1,273,650		1,272,291		—		1,272,291		—
Total deposits	4,970,307		4,968,498		3,542,256		1,426,242		—
Securities sold under agreements to repurchase	2,804		2,804		—		2,804		—
Capital leases	1,996		1,996		—		1,996		—
Trust preferred securities	13,661		13,878		—		13,878		—
Subordinated debentures	73,566		75,188		—		75,188		—
Other borrowings	19,357		19,162		—		19,162		—
Accrued interest payable	9,239		9,239		9,239		—		—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

	September 30, 2018
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	99,977	$	99,977	$	99,977	$	—	$	—
Securities available for sale	1,852,025		1,852,025		3,800		1,848,225		—
Securities held to maturity	172,154		160,974		—		160,974		—
Total securities	2,024,179		2,012,999		3,800		2,009,199		—
Loans held for sale	15,606		15,606		—		15,606		—
Loans and leases:
Asset based lending	477,917		477,471		—		—		477,471
Factoring	284,221		283,424		—		—		283,424
Lease financing	265,315		264,679		—		—		264,679
Insurance premium finance	337,877		337,212		—		—		337,212
SBA/USDA	59,374		61,072		—		—		61,072
Other commercial finance	85,145		83,111		—		—		83,111
Commercial finance	1,509,849		1,506,969		—		—		1,506,969
Consumer credit products	80,605		80,633		—		—		80,633
Other consumer finance	189,756		197,320		—		—		197,320
Consumer finance	270,361		277,953		—		—		277,953
Tax services	1,073		1,073		—		—		1,073
Warehouse finance	65,000		64,978		—		—		64,978
Total National Lending	1,846,283		1,850,973		—		—		1,850,973
Commercial real estate and operating	790,890		773,203		—		—		773,203
Consumer one to four family real estate and other	247,318		244,730		—		—		244,730
Agricultural real estate and operating	60,498		58,849		—		—		58,849
Total Community Banking	1,098,706		1,076,782		—		—		1,076,782
Total loans and leases	2,944,989		2,927,755		—		—		2,927,755
Federal Home Loan Bank stock	23,400		23,400		—		23,400		—
Accrued interest receivable	22,016		22,016		22,016		—		—
Financial liabilities
Noninterest-bearing demand deposits	2,405,274		2,405,274		2,405,274		—		—
Interest-bearing demand deposits, savings, and money markets	218,347		218,347		218,347		—		—
Certificates of deposits	276,180		273,800		—		273,800		—
Wholesale non-maturing deposits	94,384		94,384		94,384		—		—
Wholesale certificates of deposits	1,436,802		1,432,146		—		1,432,146		—
Total deposits	4,430,987		4,423,951		2,718,005		1,705,946		—
Federal funds purchased	422,000		422,000		422,000		—		—
Securities sold under agreements to repurchase	3,694		3,694		—		3,694		—
Capital leases	1,876		1,876		—		1,876		—
Trust preferred securities	13,661		13,866		—		13,866		—
Subordinated debentures	73,491		75,563		—		75,563		—
Accrued interest payable	7,794		7,794		7,794		—		—

The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at March 31, 2019 and September 30, 2018.

CASH AND CASH EQUIVALENTS

The carrying amount of cash and short-term investments is assumed to approximate the fair value.

DEBT SECURITIES AVAILABLE FOR SALE AND EQUITY SECURITIES

Debt securities available for sale and equity securities are recorded at fair value on a recurring basis. Fair values for these investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities.

LOANS HELD FOR SALE

The carrying amount of loans held for sale is assumed to approximate the fair value.

LOANS AND LEASES, NET

Upon adoption of ASU 2016-01, the fair value of loans and leases were estimated using an exit price methodology. The exit price estimation of fair value is based on the present value of expected cash flows, which are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk. In comparison, loan and lease fair values as of September 30, 2018 were estimated on an entrance price methodology, which discounts future cash flows using the then-current rates at which a similar loan would be made to borrowers with similar credit ratings and for the same remaining maturities. The fair value of non-impaired loans and leases as of March 31, 2019 and September 30, 2018 are not comparable.

FEDERAL HOME LOAN BANK (“FHLB”) STOCK

The fair value of FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.

ACCRUED INTEREST RECEIVABLE

The carrying amount of accrued interest receivable is assumed to approximate the fair value.

DEPOSITS

The carrying values of noninterest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value since deposits are immediately withdrawable without penalty. The fair value of time certificate deposits and wholesale certificate deposits are estimated using a discounted cash flows calculation that applies the FHLB Des Moines curve to aggregated expected maturities of time deposits. In accordance with Subtopic 825-10, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under Subtopic 825-10.

ADVANCES FROM FHLB

The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.

FEDERAL FUNDS PURCHASED

The carrying amount of federal funds purchased is assumed to approximate the fair value.

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, SUBORDINATED DEBENTURES AND OTHER BORROWINGS

The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.

ACCRUED INTEREST PAYABLE

The carrying amount of accrued interest payable is assumed to approximate the fair value.

LIMITATIONS

Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument.  Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments.  These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time.  Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision.  Changes in assumptions as well as tax considerations could significantly affect the estimates.  Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.

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SEGMENT REPORTING

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

SSEGMENT REPORTING

SEGMENT REPORTING

An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other. The Meta Payment Systems and Tax Services divisions are reported in the Payments segment. The Community Banking, Commercial Finance and Consumer Finance divisions are reported in the Banking segment. Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in the Corporate Services/Other segment.

The following tables present segment data for the Company for the three and six months ended March 31, 2019 and 2018, respectively.

	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2019
Net interest income (expense)	$	13,607	$	56,271	$	1,472		$	71,350
Provision for loan and lease losses	22,474		10,844		—			33,318
Noninterest income	89,752		13,948		1,325			105,025
Noninterest expense	32,178		42,522		35,554			110,254
Income (loss) before income tax expense (benefit)	48,707		16,853		(32,757		)	32,803
Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307

	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2019
Net interest income (expense)	$	23,007	$	108,063	$	552		$	131,622
Provision for loan and lease losses	23,969		18,448		—			42,417
Noninterest income	112,578		28,217		1,981			142,776
Noninterest expense	53,539		76,365		54,645			184,549
Income (loss) before income tax expense (benefit)	58,077		41,467		(52,112		)	47,432
Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307

	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2018
Net interest income	$	4,933	$	16,120	$	6,352		$	27,405
Provision for loan losses	18,129		214		—			18,343
Noninterest income	95,673		1,241		505			97,419
Noninterest expense	44,841		6,984		16,672			68,497
Income (loss) before income tax expense (benefit)	37,636		10,163		(9,815		)	37,984
Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2018
Net interest income	$	9,602	$	31,717	$	12,282		$	53,601
Provision for loan losses	19,146		265		—			19,411
Noninterest income	123,774		2,726		187			126,687
Noninterest expense	71,796		13,552		27,191			112,539
Income (loss) before income tax expense (benefit)	42,434		20,626		(14,722		)	48,338
Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

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SUBSEQUENT EVENTS

6 Months Ended

Mar. 31, 2019

Subsequent Events [Abstract]

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS

Management has evaluated subsequent events that occurred after March 31, 2019. During this period, up to the filing date, management did not identify any material subsequent events that would require recognition or disclosure in our consolidated financial statements as of or for the quarter ended March 31, 2019.

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Policies)

6 Months Ended

Mar. 31, 2019

Accounting Policies [Abstract]

New Accounting Pronouncements, Policy

Revenue Recognition - The Company adopted ASU 2014-09, Revenue from Contracts with Customers (Topic 606), subsequent related Updates (collectively, ASU 2014-09), and ASU 2016-04, Liabilities - Extinguishments of Liabilities (Subtopic 405-20): Recognition of Breakage of Certain Prepaid Stored-Value Products on October 1, 2018. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative-effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s Meta Payment Systems (MPS) division. Refer to Note 12. Revenue from Contracts with Customers for additional information.

Financial Instruments - The Company adopted ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities and related Updates (collectively, ASU 2016-01) on October 1, 2018. ASU 2016-01 makes several revisions to Subtopic 825-10, including that ASU 2016-01: (1) requires equity investments to be measured at fair value with changes in fair value recognized in net income, (2) simplifies impairment assessment of equity investments without readily determinable fair value, (3) eliminates requirement to disclose methods and significant assumptions used to estimate fair value of financial instruments measured at amortized cost, (4) requires the use of an exit price notion when measuring fair value of financial instruments for disclosure purposes, and (5) requires separate presentation of financial assets and liabilities by measurement category and form of financial asset on the balance sheet and accompanying notes. Upon adoption, the Company recorded a cumulative-effect adjustment that reclassed $0.5 million, net of tax, from accumulated other comprehensive income to retained earnings, due to the Company’s cumulative change in fair value of equity securities with readily determinable fair value. Refer to Note 6. Securities for additional information.

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ACQUISITIONS (Tables)

6 Months Ended

Mar. 31, 2019

Business Combinations [Abstract]

Schedule of Purchase Price to Net Assets

The following table summarizes the allocation of the purchase price to net assets of Crestmark as of the August 1, 2018 acquisition date.

(Dollars in Thousands)	Estimated fair value as previously reported(a)		Measurement period adjustments			Fair value as adjusted
Rental Equipment	$	98,977	$	(3,355	)	$	95,622
Intangible assets	28,253		(117		)	28,136
Goodwill	204,547		4,194			208,742
Accrued expenses and other liabilities	88,301		723			89,024
Net other assets	55,464		—			55,464
Noncontrolling interest	3,167		—			3,167
Purchase price	295,773		—			295,773

^(a) As previously reported in the Company's Annual Report on Form 10-K for the fiscal year ended September 30, 2018

Schedule of Business Acquisitions, by Acquisition

The table below reflects the net impact of the foregoing DC Solar matters, based upon the Company's present understanding of the relevant facts and circumstances, to the Company's financial statements at March 31, 2019 and for the three months ended March 31, 2019.

		Increase (Decrease)
Balance Sheet:		(Dollars in Thousands)
	Operating lease equipment	$	(12,589	)
	Goodwill	1,968
	Other assets	(394		)
	Liabilities	(4,461		)
	Total balance sheet impact	$	(6,554	)
	Regulatory capital impact	$	(8,522	)
		Income (Expense)
Income Statement:
	Rental income	$	1,633
	Other income	315
	Impairment	(9,549		)
	Income tax benefit	1,047
	Impact to net income	$	(6,554	)

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LOANS AND LEASES, NET (Tables)

6 Months Ended

Mar. 31, 2019

Loans and Leases Receivable Disclosure [Abstract]

Schedule of Loans Receivable

Loans and leases at March 31, 2019 and September 30, 2018 were as follows:

	March 31, 2019			September 30, 2018
National Lending	(Dollars in Thousands)
Asset based lending	$	572,210		$	477,917
Factoring	287,955			284,221
Lease financing	321,414			265,315
Insurance premium finance	307,875			337,877
SBA/USDA	77,481			59,374
Other commercial finance	98,956			85,145
Commercial finance	1,665,891			1,509,849
Consumer credit products	139,617			80,605
Other consumer finance	170,824			189,756
Consumer finance(1)	310,441			270,361
Tax services	84,824			1,073
Warehouse finance(1)	186,697			65,000
Total National Lending	2,247,853			1,846,283
Community Banking
Commercial real estate and operating	869,917			790,890
Consumer one-to-four family real estate and other	257,079			247,318
Agricultural real estate and operating	60,167			60,498
Total Community Banking	1,187,163			1,098,706
Total gross loans and leases	3,435,016			2,944,989
Allowance for loan and lease losses	(48,672		)	(13,040		)
Net deferred loan origination fees (costs)	2,964			(250		)
Total loans and leases, net(2)	$	3,389,308		$	2,931,699

⁽¹⁾ Warehouse finance loans are presented in their own line. Previously these balances were included with consumer finance loans. Prior period balances have also been adjusted to reflect this change.

⁽²⁾ As of March 31, 2019, the remaining balance of acquired loans and leases from the Crestmark acquisition was $591.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $8.7 million and $4.5 million, respectively, while the remaining balance of the interest rate mark premium related to the acquired loans held for sale was $0.8 million. On August 1, 2018, the Company acquired loans and leases from the Crestmark acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

Schedule of Loans Purchased and Sold by Portfolio Segment

Loans purchased and sold by portfolio segment, including participation interests, for the three and six months ended March 31, 2019 and 2018 were as follows:

	Three Months Ended				Six Months Ended
	March 31, 2019		March 31, 2018		March 31, 2019		March 31, 2018
Loans Purchased	(Dollars in Thousands)
Loans held for sale	$	5,940	$	—	$	5,940	$	—
Loans held for investment:
Total National Lending	10,621		—		125,591		72,751
Total Community Banking	7,432		13,823		18,513		16,235
Total purchases	23,933		13,823		150,044		88,986
Loans Sold
Loans held for sale	28,051		—		34,904		—
Loans held for investment:
Total Community Banking	10,479		3,666		10,857		9,582
Total sales	$	38,530	$	3,666	$	45,761	$	9,582

Sales-type Lease, Lease Income

The net investment in direct financing and sales-type leases is comprised of the following as of March 31, 2019 and September 30, 2018.

	March 31, 2019			September 30, 2018
	(Dollars in Thousands)
Minimum lease payments receivable	$	366,361		$	301,835
Estimated residual value of leased equipment	11,328			12,406
Unamortized initial direct costs	4,190			1,806
Premium on acquired leases	9			26
Unearned income	(56,266		)	(48,949		)
Net investment in direct financing and sales-type leases	$	325,622		$	267,124

Sales-type and Direct Financing Leases, Lease Receivable, Maturity

Future minimum lease payments receivable on noncancelable direct financing and sales-type leases were as follows as of March 31, 2019.

	As of March 31, 2019
	(Dollars in thousands)
Remaining in 2019	$	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$	366,361

Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for each of the three and six months ended March 31, 2019 and 2018 was as follows:

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	2,065	$	1,365		$	—		$	69	$	3,499
Factoring	1,062		1,799			(1,125		)	25		1,761
Lease financing	1,084		1,671			(1,044		)	254		1,965
Insurance premium finance	972		1,797			(1,877		)	27		919
SBA/USDA	253		221			—			—		474
Other commercial finance	291		234			—			—		525
Commercial finance	5,727		7,087			(4,046		)	375		9,143
Consumer credit products	1,151		163			—			—		1,314
Other consumer finance	4,222		3,336			(2,456		)	28		5,130
Consumer finance	5,373		3,499			(2,456		)	28		6,444
Tax services	1,546		22,473			(1		)	84		24,102
Warehouse finance	176		9			—			—		185
Total National Lending	12,822		33,068			(6,503		)	487		39,874
Community Banking
Commercial real estate and operating	6,570		103			—			—		6,673
Consumer one-to-four family real estate and other	719		259			(20		)	—		958
Agricultural real estate and operating	1,179		(112		)	—			100		1,167
Total Community Banking	8,468		250			(20		)	100		8,798
Total	$	21,290	$	33,318		$	(6,523	)	$	587	$	48,672

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	107	$	3,528		$	(262	)	$	126	$	3,499
Factoring	64		3,022			(1,375		)	50		1,761
Lease financing	59		1,542			(1,462		)	1,826		1,965
Insurance premium finance	1,031		1,890			(2,085		)	83		919
SBA/USDA	13		461			—			—		474
Other commercial finance	28		497			—			—		525
Commercial finance	1,302		10,940			(5,184		)	2,085		9,143
Consumer credit products	785		529			—			—		1,314
Other consumer finance	2,820		6,359			(4,079		)	30		5,130
Consumer finance	3,605		6,888			(4,079		)	30		6,444
Tax services	—		23,969			(43		)	176		24,102
Warehouse finance	65		120			—			—		185
Total National Lending	4,972		41,917			(9,306		)	2,291		39,874
Community Banking
Commercial real estate and operating	6,220		453			—			—		6,673
Consumer one-to-four family real estate and other	632		346			(20		)	—		958
Agricultural real estate and operating	1,216		(299		)	—			250		1,167
Total Community Banking	8,068		500			(20		)	250		8,798
Total	$	13,040	$	42,417		$	(9,326	)	$	2,541	$	48,672

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Three Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	725	$	214		$	(339	)	$	146	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	729		214			(339		)	146		750
Tax services	1,435		18,129			—			9		19,573
Total National Lending	2,164		18,343			(339		)	155		20,323
Community Banking
Commercial real estate and operating	3,149		951			—			—		4,100
Consumer one-to-four family real estate and other	665		233			—			3		901
Agricultural real estate and operating	1,984		(1,273		)	—			54		765
Unallocated	900		89			—			—		989
Total Community Banking	6,698		—			—			57		6,755
Total	$	8,862	$	18,343		$	(339	)	$	212	$	27,078

Allowance for loan and lease losses:	Beginning balance		Provision (recovery) for loan and lease losses			Charge-offs			Recoveries		Ending balance
Six Months Ended March 31, 2018	(Dollars in Thousands)
National Lending
Insurance premium finance	$	796	$	265		$	(468	)	$	153	$	746
Other commercial finance	4		—			—			—		4
Commercial finance	800		265			(468		)	153		750
Tax services	5		19,146			—			422		19,573
Total National Lending	805		19,411			(468		)	575		20,323
Community Banking
Commercial real estate and operating	2,820		1,280			—			—		4,100
Consumer one-to-four family real estate and other	809		120			(31		)	3		901
Agricultural real estate and operating	2,574		(1,863		)	—			54		765
Unallocated	526		463			—			—		989
Total Community Banking	6,729		—			(31		)	57		6,755
Total	$	7,534	$	19,411		$	(499	)	$	632	$	27,078

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	62	$	3,437	$	3,499	$	5,965	$	566,245	$	572,210
Factoring	12		1,749		1,761		6,034		281,921		287,955
Lease financing	67		1,898		1,965		2,299		319,115		321,414
Insurance premium finance	—		919		919		—		307,875		307,875
SBA/USDA	—		474		474		—		77,481		77,481
Other commercial finance	—		525		525		—		98,956		98,956
Commercial finance	141		9,002		9,143		14,298		1,651,593		1,665,891
Consumer credit products	—		1,314		1,314		—		139,617		139,617
Other consumer finance	—		5,130		5,130		1,236		169,588		170,824
Consumer finance	—		6,444		6,444		1,236		309,205		310,441
Tax services	—		24,102		24,102		—		84,824		84,824
Warehouse finance	—		185		185		—		186,697		186,697
Total National Lending	141		39,733		39,874		15,534		2,232,319		2,247,853
Community Banking
Commercial real estate and operating	—		6,673		6,673		—		869,917		869,917
Consumer one-to-four family real estate and other	—		958		958		134		256,945		257,079
Agricultural real estate and operating	—		1,167		1,167		1,220		58,947		60,167
Total Community Banking	—		8,798		8,798		1,354		1,185,809		1,187,163
Total	$	141	$	48,531	$	48,672	$	16,888	$	3,418,128	$	3,435,016

	Allowance						Loans and Leases
Recorded Investment	Ending balance: individually evaluated for impairment(1)		Ending balance: collectively evaluated for impairment(1)		Total		Ending balance: individually evaluated for impairment		Ending balance: collectively evaluated for impairment		Total
As of September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	—	$	107	$	107	$	1,404	$	476,513	$	477,917
Factoring	—		64		64		3,331		280,890		284,221
Lease financing	—		59		59		8,877		256,438		265,315
Insurance premium finance	—		1,031		1,031		—		337,877		337,877
SBA/USDA	—		13		13		—		59,374		59,374
Other commercial finance	—		28		28		—		85,145		85,145
Commercial finance	—		1,302		1,302		13,612		1,496,237		1,509,849
Consumer credit products	—		785		785		—		80,605		80,605
Other consumer finance	—		2,820		2,820		—		189,756		189,756
Consumer finance	—		3,605		3,605		—		270,361		270,361
Tax services	—		—		—		—		1,073		1,073
Warehouse finance	—		65		65		—		65,000		65,000
Total National Lending	—		4,972		4,972		13,612		1,832,671		1,846,283
Community Banking
Commercial real estate and operating	—		6,220		6,220		451		790,439		790,890
Consumer one-to-four family real estate and other	—		632		632		94		247,224		247,318
Agricultural real estate and operating	—		1,216		1,216		1,454		59,044		60,498
Total Community Banking	—		8,068		8,068		1,999		1,096,707		1,098,706
Total	$	—	$	13,040	$	13,040	$	15,611	$	2,929,378	$	2,944,989

⁽¹⁾ Balances have been restated from what was previously reported as of September 30, 2018 on the Company's Annual Report on Form 10-K for its fiscal year ended September 30, 2018.

Asset Classification of Loans and Leases

The asset classification of loans and leases at March 31, 2019 and September 30, 2018 were as follows:

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	493,351	$	—	$	72,894	$	5,965	$	572,210
Factoring	237,880		—		44,041		6,034		287,955
Lease financing	303,742		—		14,652		3,020		321,414
Insurance premium finance	307,875		—		—		—		307,875
SBA/USDA	63,428		—		14,053		—		77,481
Other commercial finance	98,380		—		576		—		98,956
Commercial finance	1,504,656		—		146,216		15,019		1,665,891
Consumer credit products	139,617		—		—		—		139,617
Other consumer finance	170,824		—		—		—		170,824
Consumer finance	310,441		—		—		—		310,441
Tax services	84,824		—		—		—		84,824
Warehouse finance	186,697		—		—		—		186,697
Total National Lending	2,086,618		—		146,216		15,019		2,247,853
Community Banking
Commercial real estate and operating	857,897		6,672		5,348		—		869,917
Consumer one-to-four family real estate and other	253,698		2,999		306		76		257,079
Agricultural real estate and operating	43,260		5,331		3,038		8,538		60,167
Total Community Banking	1,154,855		15,002		8,692		8,614		1,187,163
Total loans and leases	$	3,241,473	$	15,002	$	154,908	$	23,633	$	3,435,016

Asset Classification	Pass		Watch		Special Mention		Substandard		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	418,635	$	—	$	57,877	$	1,405	$	477,917
Factoring	248,246		—		32,644		3,331		284,221
Lease financing	252,487		—		3,951		8,877		265,315
Insurance premium finance	336,296		—		1,581		—		337,877
SBA/USDA	39,093		—		20,281		—		59,374
Other commercial finance	85,145		—		—		—		85,145
Commercial finance	1,379,902		—		116,334		13,613		1,509,849
Consumer credit products	80,605		—		—		—		80,605
Other consumer finance	189,756		—		—		—		189,756
Consumer finance	270,361		—		—		—		270,361
Tax services	1,073		—		—		—		1,073
Warehouse finance	65,000		—		—		—		65,000
Total National Lending	1,716,336		—		116,334		13,613		1,846,283
Community Banking
Commercial real estate and operating	778,445		12,251		194		—		790,890
Consumer one-to-four family real estate and other	246,463		537		239		79		247,318
Agricultural real estate and operating	42,292		2,447		4,872		10,887		60,498
Total Community Banking	1,067,200		15,235		5,305		10,966		1,098,706
Total loans and leases	$	2,783,536	$	15,235	$	121,639	$	24,579	$	2,944,989

Past Due Loans and Leases

Past due loans and leases at March 31, 2019 and September 30, 2018 were as follows:

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
March 31, 2019	(Dollars in Thousands)
National Lending
Asset based lending	$	799	$	1,712	$	78	$	2,589	$	569,621	$	572,210	$	—	$	266	$	266
Factoring	—		—		—		—		287,955		287,955		—		716		716
Lease financing	9,291		1,227		1,761		12,279		309,135		321,414		645		1,802		2,447
Insurance premium finance	2,009		767		1,640		4,416		303,459		307,875		1,640		—		1,640
SBA/USDA	1,078		—		—		1,078		76,403		77,481		—		—		—
Other commercial finance	—		—		—		—		98,956		98,956		—		—		—
Commercial finance	13,177		3,706		3,479		20,362		1,645,529		1,665,891		2,285		2,784		5,069
Consumer credit products	1,080		667		420		2,167		137,450		139,617		420		—		420
Other consumer finance	1,256		504		1,853		3,613		167,211		170,824		1,853		—		1,853
Consumer finance	2,336		1,171		2,273		5,780		304,661		310,441		2,273		—		2,273
Tax services	667		—		—		667		84,157		84,824		—		—		—
Warehouse finance	—		—		—		—		186,697		186,697		—		—		—
Total National Lending	16,180		4,877		5,752		26,809		2,221,044		2,247,853		4,558		2,784		7,342
Community Banking
Commercial real estate and operating	271		—		—		271		869,646		869,917		—		—		—
Consumer one-to-four family real estate and other	110		250		76		436		256,643		257,079		—		76		76
Agricultural real estate and operating	—		—		2,200		2,200		57,967		60,167		2,200		—		2,200
Total Community Banking	381		250		2,276		2,907		1,184,256		1,187,163		2,200		76		2,276
Total Loans and Leases	$	16,561	$	5,127	$	8,028	$	29,716	$	3,405,300	$	3,435,016	$	6,758	$	2,860	$	9,618

	Accruing and Non-accruing Loans and Leases												Non-performing Loans and Leases
Past Due Loans and Leases	30-59 Days Past Due		60-89 Days Past Due		> 89 Days Past Due		Total Past Due		Current		Total Loans and Leases Receivable		> 89 Days Past Due and Accruing		Non-accrual balance		Total
September 30, 2018	(Dollars in Thousands)
National Lending
Asset based lending	$	1,235	$	2,151	$	94	$	3,480	$	474,437	$	477,917	$	94	$	—	$	94
Factoring	—		—		—		—		284,221		284,221		—		—		—
Lease financing	16,542		532		2,921		19,995		245,320		265,315		726		2,864		3,590
Insurance premium finance	1,864		1,019		2,981		5,864		332,013		337,877		2,981		—		2,981
SBA/USDA	1,067		—		—		1,067		58,307		59,374		—		—		—
Other commercial finance	—		—		—		—		85,145		85,145		—		—		—
Commercial finance	20,708		3,702		5,996		30,406		1,479,443		1,509,849		3,801		2,864		6,665
Consumer credit products	532		284		147		963		79,642		80,605		147		—		147
Other consumer finance	2,677		1,311		2,237		6,225		183,531		189,756		2,237		—		2,237
Consumer finance	3,209		1,595		2,384		7,188		263,173		270,361		2,384		—		2,384
Tax services	—		—		1,073		1,073		—		1,073		1,073		—		1,073
Warehouse finance	—		—		—		—		65,000		65,000		—		—		—
Total National Lending	23,917		5,297		9,453		38,667		1,807,616		1,846,283		7,258		2,864		10,122
Community Banking
Commercial real estate and operating	—		—		—		—		790,890		790,890		—		—		—
Consumer one-to-four family real estate and other	105		—		79		184		247,134		247,318		79		—		79
Agricultural real estate and operating	—		—		—		—		60,498		60,498		—		—		—
Total Community Banking	105		—		79		184		1,098,522		1,098,706		79		—		79
Total Loans and Leases	$	24,022	$	5,297	$	9,532	$	38,851	$	2,906,138	$	2,944,989	$	7,337	$	2,864	$	10,201

Impaired Loans and Leases

Impaired loans and leases at March 31, 2019 and September 30, 2018 were as follows:

March 31, 2019	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	4,887	$	5,399	$	—
Factoring	6,009		7,084		—
Lease financing	2,209		2,209		—
Commercial finance	13,105		14,692		—
Other consumer finance	1,236		1,304		—
Consumer finance	1,236		1,304		—
Total National Lending	14,341		15,996		—
Community Banking
Consumer one-to-four family real estate and other	134		153		—
Agricultural real estate and operating	1,220		1,220		—
Total Community Banking	1,354		1,373		—
Total	$	15,695	$	17,370	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	1,078	$	1,078	$	62
Factoring	25		25		12
Lease financing	90		90		67
Commercial finance	1,193		1,193		141
Total National Lending	1,193		1,193		141
Total	$	1,193	$	1,193	$	141

September 30, 2018	Recorded Balance		Unpaid Principal Balance		Specific Allowance
Loans and leases without a specific valuation allowance	(Dollars in Thousands)
National Lending
Asset based lending	$	1,325	$	1,325	$	—
Factoring	1,383		1,713		—
Lease financing	5,491		5,491		—
Commercial finance	8,199		8,529		—
Total National Lending	8,199		8,529		—
Community Banking	405		405		—
Commercial real estate and operating	140		140		—
Consumer one-to-four family real estate and other	1,454		1,454		—
Agricultural real estate and operating	1,999		1,999		—
Total	$	10,198	$	10,528	$	—
Loans and leases with a specific valuation allowance
National Lending
Asset based lending	$	79	$	79	$	22
Factoring	1,948		2,198		49
Lease financing	3,386		3,386		517
Commercial finance	5,413		5,663		588
Total National Lending	5,413		5,663		588
Total	$	5,413	$	5,413	$	588

The following table provides the average recorded investment in impaired loans and leases for the three and sixmonth periods ended March 31, 2019 and 2018.

Three Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	3,569	$	95	$	—	$	—
Factoring	3,131		—		—		—
Lease financing	4,100		7		—		—
Commercial finance	10,800		102		—		—
Other consumer finance	1,232		10		—		—
Consumer finance	1,232		10		—		—
Total National Lending	12,032		112		—		—
Community Banking
Commercial real estate and operating	268		—		705		5
Consumer one-to-four family real estate and other	137		—		229		6
Agricultural real estate and operating	1,414		10		1,680		50
Total Community Banking	1,819		10		2,614		61
Total loans and leases	$	13,851	$	122	$	2,614	$	61

Six Months Ended March 31,	2019				2018
	Average Recorded Investment		Recognized Interest Income		Average Recorded Investment		Recognized Interest Income
	(Dollars in Thousands)
National Lending
Asset based lending	$	2,648	$	174	$	—	$	—
Factoring	2,956		5		—		—
Lease financing	5,842		17		—		—
Commercial finance	11,446		196		—		—
Other consumer finance	1,227		10		—		—
Consumer finance	1,227		10		—		—
Total National Lending	12,673		206		—		—
Community Banking
Commercial real estate and operating	336		4		840		10
Consumer one-to-four family real estate and other	138		2		165		9
Agricultural real estate and operating	1,443		35		1,015		64
Total Community Banking	1,917		41		2,020		83
Total loans and leases	$	14,590	$	247	$	2,020	$	83

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EARNINGS PER COMMON SHARE (Tables)

6 Months Ended

Mar. 31, 2019

Earnings Per Share [Abstract]

Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS

A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and six months ended March 31, 2019 and 2018 is presented below.

Three Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Basic income per common share	0.81		1.08
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	32,120	$	31,436
Weighted average common shares outstanding	39,429,595		29,061,180
Outstanding options - based upon the two-class method	67,237		118,956
Weighted average diluted common shares outstanding	39,496,832		29,180,136
Diluted income per common share	0.81		1.08

Six Months Ended March 31,	2019		2018
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Basic income per common share	1.21		1.24
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.	$	47,518	$	36,106
Weighted average common shares outstanding	39,381,682		29,015,376
Outstanding options - based upon the two-class method	68,581		115,038
Weighted average diluted common shares outstanding	39,450,263		29,130,414
Diluted income per common share	1.20		1.24

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SECURITIES (Tables)

6 Months Ended

Mar. 31, 2019

Investments, Debt and Equity Securities [Abstract]

Securities Available for Sale

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities at March 31, 2019 and September 30, 2018 are presented below.

At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	163,621	$	637	$	(155	)	$	164,103
Obligations of states and political subdivisions	11,432		106		(9		)	11,529
Non-bank qualified obligations of states and political subdivisions	629,732		1,357		(9,447		)	621,642
Asset-backed securities	284,701		1,286		(1,598		)	284,389
Mortgage-backed securities	419,024		1,064		(6,595		)	413,493
Total debt securities AFS	$	1,508,510	$	4,450	$	(17,804	)	$	1,495,156
Common equities and mutual funds(1)(2)	$	3,592	$	619	$	—		$	4,211

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	45,591	$	1	$	(1,255	)	$	44,337
Obligations of states and political subdivisions	17,154		49		(293		)	16,910
Non-bank qualified obligations of states and political subdivisions	1,140,884		826		(31,825		)	1,109,885
Asset-backed securities	310,700		2,585		(257		)	313,028
Mortgage-backed securities	378,301		—		(14,236		)	364,065
Total debt securities AFS	$	1,892,630	$	3,461	$	(47,866	)	$	1,848,225
Common equities and mutual funds(1)	3,172		635		(7		)	3,800
Total AFS securities(1)	$	1,895,802	$	4,096	$	(47,873	)	$	1,852,025

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Securities Held to Maturity

Held to Maturity
At March 31, 2019	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	146,992	$	—	$	(5,224	)	$	141,768
Mortgage-backed securities	7,606		—		(210		)	7,396
Total held to maturity securities	$	154,598	$	—	$	(5,434	)	$	149,164

At September 30, 2018	AMORTIZED COST		GROSS UNREALIZED GAINS		GROSS UNREALIZED (LOSSES)			FAIR VALUE
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	163,893	$	—	$	(10,758	)	$	153,135
Mortgage-backed securities	7,850		—		(422		)	7,428
Total held to maturity securities	$	171,743	$	—	$	(11,180	)	$	160,563

Debt Securities, Trading, and Equity Securities, FV-NI

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2019 and September 30, 2018, were as follows:

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	41,845	$	(29	)	$	27,214	$	(126	)	$	69,059	$	(155	)
Obligations of states and political subdivisions	—		—			2,052		(9		)	2,052		(9		)
Non-bank qualified obligations of states and political subdivisions	10,210		(2		)	448,680		(9,445		)	458,890		(9,447		)
Asset-backed securities	148,254		(1,539		)	12,184		(59		)	160,438		(1,598		)
Mortgage-backed securities	32,722		(13		)	282,789		(6,582		)	315,511		(6,595		)
Total debt securities AFS	$	233,031	$	(1,583	)	$	772,919	$	(16,221	)	$	1,005,950	$	(17,804	)
Common equities and mutual funds(1)(2)	—		—			—		—			—		—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities AFS
SBA securities	$	43,097	$	(1,255	)	$	—	$	—		$	43,097	$	(1,255	)
Obligations of state and political subdivisions	11,036		(279		)	881		(14		)	11,917		(293		)
Non-bank qualified obligations of states and political subdivisions	626,693		(13,539		)	358,095		(18,286		)	984,788		(31,825		)
Asset-backed securities	146,638		(257		)	—		—			146,638		(257		)
Mortgage-backed securities	121,217		(3,292		)	242,849		(10,944		)	364,066		(14,236		)
Total debt securities AFS	$	948,681	$	(18,622	)	$	601,825	$	(29,244	)	$	1,550,506	$	(47,866	)
Common equities and mutual funds(1)	1,818		(7		)	—		—			1,818		(7		)
Total debt AFS securities(1)	$	950,499	$	(18,629	)	$	601,825	$	(29,244	)	$	1,552,324	$	(47,873	)

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Schedule of Unrealized Loss on Investments

Held To Maturity	LESS THAN 12 MONTHS				OVER 12 MONTHS					TOTAL
At March 31, 2019	Fair Value		Unrealized (Losses)		Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	—	$	—	$	141,768	$	(5,225	)	$	141,768	$	(5,225	)
Mortgage-backed securities	—		—		7,396		(210		)	7,396		(210		)
Total held to maturity securities	$	—	$	—	$	149,164	$	(5,435	)	$	149,164	$	(5,435	)

	LESS THAN 12 MONTHS					OVER 12 MONTHS					TOTAL
At September 30, 2018	Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)			Fair Value		Unrealized (Losses)
	(Dollars in Thousands)
Debt securities
Non-bank qualified obligations of states and political subdivisions	$	5,767	$	(287	)	$	147,368	$	(10,471	)	$	153,135	$	(10,758	)
Mortgage-backed securities	—		—			7,428		(422		)	7,428		(422		)
Total held to maturity securities	$	5,767	$	(287	)	$	154,796	$	(10,893	)	$	160,563	$	(11,180	)

Amortized Cost and Fair Value of Debt Securities by Contractual Maturity

The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below 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 mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain housing related municipal securities, SBA and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Securities at Fair Value	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)
Due in one year or less	$	1,020	$	1,019
Due after one year through five years	15,058		15,285
Due after five years through ten years	64,894		65,335
Due after ten years	1,008,514		1,000,024
	1,089,486		1,081,663
Mortgage-backed securities	419,024		413,493
Total securities at fair value	$	1,508,510	$	1,495,156

	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due in one year or less	$	2,532	$	2,529
Due after one year through five years	41,415		41,504
Due after five years through ten years	352,099		350,143
Due after ten years	1,118,283		1,089,984
	1,514,329		1,484,160
Mortgage-backed securities	378,301		364,065
Common equities and mutual funds(1)	3,172		3,800
Total securities at fair value	$	1,895,802	$	1,852,025

⁽¹⁾Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

Held To Maturity	AMORTIZED COST		FAIR VALUE
At March 31, 2019	(Dollars in Thousands)
Due after ten years	$	146,992	$	141,768
	146,992		141,768
Mortgage-backed securities	7,606		7,396
Total held to maturity securities at cost	$	154,598	$	149,164

	AMORTIZED COST		FAIR VALUE
At September 30, 2018	(Dollars in Thousands)
Due after ten years	$	163,893	$	153,135
	163,893		153,135
Mortgage-backed securities	7,850		7,428
Total held to maturity securities at cost	$	171,743	$	160,563

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RENTAL EQUIPMENT, NET (Tables)

6 Months Ended

Mar. 31, 2019

Property, Plant and Equipment [Abstract]

Property, Plant and Equipment

Rental equipment was as follows as of March 31, 2019 and September 30, 2018.

	March 31, 2019			September 30, 2018
	(Dollars in thousands)
Computers and IT networking equipment	$	43,896		$	53,035
Motor vehicles and other	59,589			43,505
Office furniture and equipment	3,409			3,590
Solar panels and equipment	81,498			57,242
Total	188,392			157,372
Accumulated depreciation	(48,305		)	(50,082		)
Net book value	$	140,087		$	107,290

Schedule of Future Minimum Rental Payments for Operating Leases

Future minimum lease payments receivable on equipment under operating leases was as follows as of March 31, 2019.

	March 31, 2019
	(Dollars in thousands)
2019	$	12,849
2020	20,737
2021	16,290
2022	10,135
2023	8,220
2024 and thereafter	10,164
Total	$	78,395

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GOODWILL AND INTANGIBLE ASSETS (Tables)

6 Months Ended

Mar. 31, 2019

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months endedMarch 31, 2019 and 2018 were as follows:

	Payments		Banking		Corporate Services/Other		Total
Goodwill	(Dollars in Thousands)
September 30, 2018	$	87,145	$	216,125	$	—	$	303,270
Acquisitions	—		—		—		—
Measurement Period Adjustments (1)	—		4,194		—		4,194
Impairment	—		—		—		—
March 31, 2019	$	87,145	$	220,319	$	—	$	307,464
September 30, 2017	$	87,145	$	11,578	$	—	$	98,723
Acquisitions	—		—		—		—
Impairment	—		—		—		—
March 31, 2018	$	87,145	$	11,578	$	—	$	98,723

⁽¹⁾ The Company recognized measurement period adjustments on provisional goodwill during the second fiscal quarter of 2019 related to the Crestmark acquisition. Refer to Note 3. Acquisitions.

Schedule of Finite-Lived Intangible Assets

	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2018	$	12,987		$	1,297		$	48,455		$	7,980		$	70,719
Acquisitions during the period	—			—			—			78			78
Amortization during the period	(514		)	(235		)	(8,742		)	(487		)	(9,978		)
Write-offs during the period	—			—			—			(313		)	(313		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506
Gross carrying amount	$	14,624		$	2,480		$	82,088		$	10,667		$	109,859
Accumulated amortization	(2,151		)	(1,418		)	(32,127		)	(2,750		)	(38,446		)
Accumulated impairment	—			—			(10,248		)	(659		)	(10,907		)
Balance as of March 31, 2019	$	12,473		$	1,062		$	39,713		$	7,258		$	60,506

⁽¹⁾ Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3-5 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

	Trademark(1)			Non-Compete(2)			Customer Relationships(3)			All Others(4)			Total
Intangibles	(Dollars in Thousands)
Balance as of September 30, 2017	$	10,051		$	1,782		$	31,707		$	8,638		$	52,178
Acquisitions during the period	—			—			—			47			47
Amortization during the period	(319		)	(249		)	(3,388		)	(456		)	(4,412		)
Write-offs during the period	—			—			—			(89		)	(89		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724
Gross carrying amount	$	10,990		$	2,480		$	57,810		$	10,550		$	81,830
Accumulated amortization	(1,258		)	(947		)	(19,243		)	(1,792		)	(23,240		)
Accumulated impairment	—			—			(10,248		)	(618		)	(10,866		)
Balance as of March 31, 2018	$	9,732		$	1,533		$	28,319		$	8,140		$	47,724

⁽¹⁾ Book amortization period of 15 years. Amortized using the straight line and accelerated methods.

⁽²⁾ Book amortization period of 3 years. Amortized using the straight line method.

⁽³⁾ Book amortization period of 10-30 years. Amortized using the accelerated method.

⁽⁴⁾ Book amortization period of 3-20 years. Amortized using the straight line method.

Schedule of Finite-Lived Intangible Assets, Future Amortization Expense

Estimated amortization expense of intangible assets in the remaining six months of fiscal 2019 and subsequent fiscal years is as follows:

	(Dollars in Thousands)
Remaining in 2019	$	7,731
2020	10,984
2021	8,525
2022	6,399
2023	5,081
2024	4,363
Thereafter	17,423
Total anticipated intangible amortization	$	60,506

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STOCK COMPENSATION (Tables)

6 Months Ended

Mar. 31, 2019

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Activity of Options

The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the six months ended March 31, 2019:

	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Yrs)	Aggregate Intrinsic Value
	(Dollars in Thousands, Except Per Share Data (1))
Options outstanding, September 30, 2018	155,961		$	8.48	1.78	$	2,974
Granted	—		—		—	—
Exercised	(45,132	)	8.95		—	742
Forfeited or expired	(3,027	)	10.60		—	33
Options outstanding, March 31, 2019	107,802		$	8.23	1.47	$	1,235
Options exercisable, March 31, 2019	107,802		$	8.23	1.47	$	1,235

Schedule of Nonvested Share Activity

	Number of Shares		Weighted Average Fair Value at Grant
(Dollars in Thousands, Except Per Share Data (1))
Nonvested (restricted) shares outstanding, September 30, 2018	1,005,813		$	29.89
Granted	296,302		24.84
Vested	(347,354	)	26.78
Forfeited or expired	(1,623	)	26.17
Nonvested (restricted) shares outstanding, March 31, 2019	953,138		$	29.46

⁽¹⁾ All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

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INCOME TAXES (Tables)

6 Months Ended

Mar. 31, 2019

Income Tax Disclosure [Abstract]

Schedule of Effective Income Tax Rate Reconciliation

The Company’s effective tax rate in the future will depend in part on actual investment tax credits earned as part of its financing of solar energy projects.

The table below compares the income tax expense components for the periods presented.

Six Months Ended March 31,	2019			2018
(Dollars in Thousands)
Provision at statutory rate	$	9,541		$	11,857
Tax-exempt income	(1,824		)	(3,728		)
State income taxes	2,143			2,003
Interim period effective rate adjustment	(3,968		)	(1,277		)
Tax credit investments, net - federal	(9,568		)	—
Tax Reform rate adjustment	—			3,635
IRC 162(m) nondeductible compensation	1,561			—
Other, net	29			(258		)
Income tax expense	$	(2,086	)	$	12,232
Effective tax rate	(4.40		%)	25.31		%

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REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)

6 Months Ended

Mar. 31, 2019

Revenue from Contract with Customer [Abstract]

Schedule of Revenue by Major Customers by Reporting Segments

The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 14. Segment Reporting to the Consolidated Financial Statements.

(Dollars in thousands)	Payments				Banking					Corporate Services/Other					Consolidated Company
Three Months Ended March 31,	2019		2018		2019			2018		2019		2018			2019			2018
Net interest income(1)	$	13,607	$	4,933	$	56,271		$	16,120	$	1,472	$	6,352		$	71,350		$	27,405
Noninterest income:
Refund transfer product fees	31,601		33,803		—			—		—		—			31,601			33,803
Tax advance product fees(1)	33,038		33,838		—			—		—		—			33,038			33,838
Card fees	22,960		26,771		92			85		—		—			23,052			26,856
Rental income(1)	—		—		9,890			—		—		—			9,890			—
Loan and lease fees(1)	—		—		925			1,042		—		—			925			1,042
Bank-owned life insurance(1)	—		—		—			—		631		650			631			650
Deposit fees	1,711		879		382			103		—		—			2,093			982
Gain (loss) on sale of securities available-for-sale, net(1)	—		—		—			—		231		(166		)	231			(166		)
Gain on sale of loans and leases(1)	—		—		1,085			—		—		—			1,085			—
Loss on foreclosed real estate(1)	—		—		(200		)	—		—		—			(200		)	—
Other income(1)	442		382		1,774			11		463		21			2,679			414
Total noninterest income	89,752		95,673		13,948			1,241		1,325		505			105,025			97,419
Revenue	$	103,359	$	100,606	$	70,219		$	17,361	$	2,797	$	6,857		$	176,375		$	124,824

⁽¹⁾ These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

(Dollars in thousands)	Payments				Banking						Corporate Services/Other					Consolidated Company
Six Months Ended March 31,	2019		2018		2019			2018			2019		2018			2019			2018
Net interest income(1)	$	23,007	$	9,602	$	108,063		$	31,717		$	552	$	12,282		$	131,622		$	53,601
Noninterest income:
Refund transfer product fees	31,862		33,995		—			—			—		—			31,862			33,995
Tax advance product fees(1)	34,723		35,785		—			—			—		—			34,723			35,785
Card fees	42,233		51,945		170			158			—		—			42,403			52,103
Rental income(1)	—		—		20,780			—			—		—			20,780			—
Loan and lease fees(1)	—		—		2,173			2,334			—		—			2,173			2,334
Bank-owned life insurance(1)	—		—		—			—			1,273		1,319			1,273			1,319
Deposit fees	3,245		1,607		786			223			—		—			4,031			1,830
Gain (loss) on sale of securities available-for-sale, net(1)	—		—		—			—			209		(1,176		)	209			(1,176		)
Gain on sale of loans and leases(1)	—		—		1,951			—			—		—			1,951			—
Loss on foreclosed real estate(1)	—		—		(185		)	(19		)	—		—			(185		)	(19		)
Other income(1)	515		442		2,542			30			499		44			3,556			516
Total noninterest income	112,578		123,774		28,217			2,726			1,981		187			142,776			126,687
Revenue	$	135,585	$	133,376	$	136,280		$	34,443		$	2,533	$	12,469		$	274,398		$	180,288

⁽¹⁾ These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.

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FAIR VALUE MEASUREMENTS (Tables)

6 Months Ended

Mar. 31, 2019

Fair Value Disclosures [Abstract]

Summary of Fair Values of Securities Available for Sale and Held to Maturity

The following table summarizes the fair values of debt securities available for sale and equity securities at March 31, 2019 and September 30, 2018, as they are measured at fair value on a recurring basis.

	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	164,103	$	—	$	164,103	$	—
Obligations of states and political subdivisions	11,529		—		11,529		—
Non-bank qualified obligations of states and political subdivisions	621,642		—		621,642		—
Asset-backed securities	284,389		—		284,389		—
Mortgage-backed securities	413,493		—		413,493		—
Total debt securities AFS	1,495,156		—		1,495,156		—
Common equities and mutual funds(1)(2)	$	4,211	$	4,211	$	—	$	—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

⁽²⁾ ASU 2016-01 adopted on October 1, 2018, on a prospective basis, removed equity securities from AFS category at March 31, 2019.

	Fair Value At September 30, 2018
	Available For Sale
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Debt securities AFS
Small business administration securities	$	44,337	$	—	$	44,337	$	—
Obligations of states and political subdivisions	16,910		—		16,910		—
Non-bank qualified obligations of states and political subdivisions	1,109,885		—		1,109,885		—
Asset-backed securities	313,028		—		313,028		—
Mortgage-backed securities	364,065		—		364,065		—
Total debt securities AFS	1,848,225		—		1,848,225		—
Common equities and mutual funds(1)	3,800		3,800		—		—
Total securities	$	1,852,025	$	3,800	$	1,848,225	$	—

Assets Measured at Fair Value on Nonrecurring Basis

The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2019 and September 30, 2018.

	Fair Value At March 31, 2019
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired Loans and Leases, net
Asset Based Lending	$	1,218	$	—	$	—	$	1,218
Factoring	13		—		—		13
Lease Financing	23		—		—		23
Commercial finance	1,254		—		—		1,254
Total National Lending	1,254		—		—		1,254
Total Impaired Loans and Leases	1,254		—		—		1,254
Foreclosed Assets, net	29,548		—		—		29,548
Total	$	30,802	$	—	$	—	$	30,802

	Fair Value At September 30, 2018
(Dollars in Thousands)	Total		Level 1		Level 2		Level 3
Impaired loans and leases, net
Asset Based Lending	$	57	$	—	$	—	$	57
Factoring	1,899		—		—		1,899
Lease Financing	2,869		—		—		2,869
Commercial finance	4,825		—		—		4,825
Total National Lending	4,825		—		—		4,825
Total impaired loans and leases	4,825		—		—		4,825
Foreclosed assets, net	31,638		—		—		31,638
Total	$	36,463	$	—	$	—	$	36,463

Quantitative Information about Level 3 Fair Value Measurements

	Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)	Fair Value at March 31, 2019		Fair Value at September 30, 2018	Valuation Technique	Unobservable Input	Range of Inputs
Impaired loans and leases, net	$	1,254	4,825	Market approach	Appraised values (1)	4.00 - 10.00%
Foreclosed Assets, net	$	29,548	31,638	Market approach	Appraised values (1)	4.00 - 10.00%

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

Carrying Amount 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 March 31, 2019 and September 30, 2018.

	March 31, 2019
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	156,461	$	156,461	$	156,461	$	—	$	—
Debt securities available for sale	1,495,156		1,495,156		—		1,495,156		—
Debt securities held to maturity	154,598		149,164		—		149,164		—
Equity securities (1)	4,211		4,211		4,211		—		—
Total securities	1,653,965		1,648,531		4,211		1,644,320		—
Loans held for sale	59,745		59,745		—		59,745		—
Loans and leases:
Asset based lending	572,210		551,579		—		—		551,579
Factoring	287,955		283,337		—		—		283,337
Lease financing	321,414		320,411		—		—		320,411
Insurance premium finance	307,875		307,732		—		—		307,732
SBA/USDA	77,481		74,407		—		—		74,407
Other commercial finance	98,956		100,038		—		—		100,038
Commercial finance	1,665,891		1,637,504		—		—		1,637,504
Consumer credit products	139,617		138,748		—		—		138,748
Other consumer finance	170,824		166,925		—		—		166,925
Consumer finance	310,441		305,673		—		—		305,673
Tax services	84,824		60,722		—		—		60,722
Warehouse finance	186,697		186,764		—		—		186,764
Total National Lending	2,247,853		2,190,663		—		—		2,190,663
Commercial real estate and operating	869,917		861,524		—		—		861,524
Consumer one to four family real estate and other	257,079		254,642		—		—		254,642
Agricultural real estate and operating	60,167		58,454		—		—		58,454
Total Community Banking	1,187,163		1,174,620		—		—		1,174,620
Total loans and leases	3,435,016		3,365,283		—		—		3,365,283
Federal Home Loan Bank stock	7,436		7,436		—		7,436		—
Accrued interest receivable	20,281		20,281		20,281		—		—
Financial liabilities
Noninterest-bearing demand deposits	3,034,428		3,034,428		3,034,428		—		—
Interest-bearing demand deposits, savings, and money markets	300,033		300,033		300,033		—		—
Certificates of deposits	154,401		153,951		—		153,951		—
Wholesale non-maturing deposits	207,795		207,795		207,795		—		—
Wholesale certificates of deposits	1,273,650		1,272,291		—		1,272,291		—
Total deposits	4,970,307		4,968,498		3,542,256		1,426,242		—
Securities sold under agreements to repurchase	2,804		2,804		—		2,804		—
Capital leases	1,996		1,996		—		1,996		—
Trust preferred securities	13,661		13,878		—		13,878		—
Subordinated debentures	73,566		75,188		—		75,188		—
Other borrowings	19,357		19,162		—		19,162		—
Accrued interest payable	9,239		9,239		9,239		—		—

⁽¹⁾ Equity securities at fair value are included within other assets on the consolidated statement of financial condition at March 31, 2019 and September 30, 2018.

	September 30, 2018
(Dollars in Thousands)	Carrying Amount		Estimated Fair Value		Level 1		Level 2		Level 3
Financial assets
Cash and cash equivalents	$	99,977	$	99,977	$	99,977	$	—	$	—
Securities available for sale	1,852,025		1,852,025		3,800		1,848,225		—
Securities held to maturity	172,154		160,974		—		160,974		—
Total securities	2,024,179		2,012,999		3,800		2,009,199		—
Loans held for sale	15,606		15,606		—		15,606		—
Loans and leases:
Asset based lending	477,917		477,471		—		—		477,471
Factoring	284,221		283,424		—		—		283,424
Lease financing	265,315		264,679		—		—		264,679
Insurance premium finance	337,877		337,212		—		—		337,212
SBA/USDA	59,374		61,072		—		—		61,072
Other commercial finance	85,145		83,111		—		—		83,111
Commercial finance	1,509,849		1,506,969		—		—		1,506,969
Consumer credit products	80,605		80,633		—		—		80,633
Other consumer finance	189,756		197,320		—		—		197,320
Consumer finance	270,361		277,953		—		—		277,953
Tax services	1,073		1,073		—		—		1,073
Warehouse finance	65,000		64,978		—		—		64,978
Total National Lending	1,846,283		1,850,973		—		—		1,850,973
Commercial real estate and operating	790,890		773,203		—		—		773,203
Consumer one to four family real estate and other	247,318		244,730		—		—		244,730
Agricultural real estate and operating	60,498		58,849		—		—		58,849
Total Community Banking	1,098,706		1,076,782		—		—		1,076,782
Total loans and leases	2,944,989		2,927,755		—		—		2,927,755
Federal Home Loan Bank stock	23,400		23,400		—		23,400		—
Accrued interest receivable	22,016		22,016		22,016		—		—
Financial liabilities
Noninterest-bearing demand deposits	2,405,274		2,405,274		2,405,274		—		—
Interest-bearing demand deposits, savings, and money markets	218,347		218,347		218,347		—		—
Certificates of deposits	276,180		273,800		—		273,800		—
Wholesale non-maturing deposits	94,384		94,384		94,384		—		—
Wholesale certificates of deposits	1,436,802		1,432,146		—		1,432,146		—
Total deposits	4,430,987		4,423,951		2,718,005		1,705,946		—
Federal funds purchased	422,000		422,000		422,000		—		—
Securities sold under agreements to repurchase	3,694		3,694		—		3,694		—
Capital leases	1,876		1,876		—		1,876		—
Trust preferred securities	13,661		13,866		—		13,866		—
Subordinated debentures	73,491		75,563		—		75,563		—
Accrued interest payable	7,794		7,794		7,794		—		—

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SEGMENT REPORTING (Tables)

6 Months Ended

Mar. 31, 2019

Segment Reporting [Abstract]

Segment Information of Entity

The following tables present segment data for the Company for the three and six months ended March 31, 2019 and 2018, respectively.

	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2019
Net interest income (expense)	$	13,607	$	56,271	$	1,472		$	71,350
Provision for loan and lease losses	22,474		10,844		—			33,318
Noninterest income	89,752		13,948		1,325			105,025
Noninterest expense	32,178		42,522		35,554			110,254
Income (loss) before income tax expense (benefit)	48,707		16,853		(32,757		)	32,803
Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307

	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2019
Net interest income (expense)	$	23,007	$	108,063	$	552		$	131,622
Provision for loan and lease losses	23,969		18,448		—			42,417
Noninterest income	112,578		28,217		1,981			142,776
Noninterest expense	53,539		76,365		54,645			184,549
Income (loss) before income tax expense (benefit)	58,077		41,467		(52,112		)	47,432
Total assets	245,872		3,884,673		1,919,497			6,050,042
Total goodwill	87,145		220,319		—			307,464
Total deposits	3,107,264		482,033		1,381,010			4,970,307

	Payments		Banking		Corporate Services/Other			Total
Three Months Ended March 31, 2018
Net interest income	$	4,933	$	16,120	$	6,352		$	27,405
Provision for loan losses	18,129		214		—			18,343
Noninterest income	95,673		1,241		505			97,419
Noninterest expense	44,841		6,984		16,672			68,497
Income (loss) before income tax expense (benefit)	37,636		10,163		(9,815		)	37,984
Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

	Payments		Banking		Corporate Services/Other			Total
Six Months Ended March 31, 2018
Net interest income	$	9,602	$	31,717	$	12,282		$	53,601
Provision for loan losses	19,146		265		—			19,411
Noninterest income	123,774		2,726		187			126,687
Noninterest expense	71,796		13,552		27,191			112,539
Income (loss) before income tax expense (benefit)	42,434		20,626		(14,722		)	48,338
Total assets	243,140		1,510,939		2,547,614			4,301,693
Total goodwill	87,145		11,578		—			98,723
Total deposits	2,882,441		244,149		213,907			3,340,497

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SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES AND RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU") (Details) $ in Thousands	Oct. 01, 2018 USD ($)
Accounting Standards Update 2014-09
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption	$ 1,502

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ACQUISTIONS - Narrative (Details) - USD ($) $ in Thousands		3 Months Ended
	Aug. 01, 2018	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Goodwill		$ 307,464	$ 303,270	$ 98,723	$ 98,723
Crestmark Bancorp, Inc.
Business Acquisition [Line Items]
Total consideration paid	$ 295,800
Equity interest issued (in shares)	9,919,512
Receivables acquired		591,100
Goodwill	$ 204,547	208,742
DC Solar
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		$ 2,200

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LOANS AND LEASES, NET - Summary of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018	Aug. 01, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	$ 3,435,016	$ 2,944,989
Allowance for loan and lease losses	(48,672)	(13,040)
Net Deferred Loan Origination Fees	2,964	(250)
Total Loans Receivable, Net	3,389,308	2,931,699
Financing Receivable | Asset based lending
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	572,210	477,917
Financing Receivable | Factoring
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	287,955	284,221
Financing Receivable | Lease financing
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	321,414	265,315
Financing Receivable | Insurance premium finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	307,875	337,877
Financing Receivable | SBA/USDA
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	77,481	59,374
Financing Receivable | Other commercial finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	98,956	85,145
Financing Receivable | Commercial finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	1,665,891	1,509,849
Financing Receivable | Consumer credit products
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	139,617	80,605
Financing Receivable | Other consumer finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	170,824	189,756
Financing Receivable | Consumer finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	310,441	270,361
Financing Receivable | Tax services
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	84,824	1,073
Financing Receivable | Warehouse finance
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	186,697	65,000
Financing Receivable | National Lending
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	2,247,853	1,846,283
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	1,187,163	1,098,706
Loans Receivable | Commercial real estate and operating
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	869,917	790,890
Loans Receivable | 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	257,079	247,318
Loans Receivable | Agricultural real estate and operating
Accounts, Notes, Loans and Financing Receivable [Line Items]
Total Loans Receivable	60,167	$ 60,498
Crestmark Bancorp, Inc.
Accounts, Notes, Loans and Financing Receivable [Line Items]
Receivables acquired	591,100
Acquired loans and leases from Crestmark acquisition			$ 1,060,000
Credit discounts	$ (8,700)		(12,300)
Interest rate mark discounts			$ (6,000)

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ACQUISITIONS ACQUISITIONS - Purchase Price Allocation (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Sep. 30, 2018	Aug. 01, 2018	Mar. 31, 2018	Sep. 30, 2017
Business Acquisition [Line Items]
Goodwill	$ 307,464	$ 303,270		$ 98,723	$ 98,723
Crestmark Bancorp, Inc.
Business Acquisition [Line Items]
Rental Equipment	95,622		$ 98,977
Measurement period adjustments, Rental Equipment	(3,355)
Intangible assets	28,136		28,253
Measurement period adjustments, Intangible assets	(117)
Goodwill	208,742		204,547
Measurement period adjustments, Goodwill	4,194
Accrued expenses and other liabilities	89,024		88,301
Measurement period adjustments, Accrued expenses and other liabilities	723
Net other assets	55,464		55,464
Noncontrolling interest	3,167		3,167
Purchase price	$ 295,773		$ 295,773

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LOANS AND LEASES, NET LOANS AND LEASES, NET - Schedule of Loans Purchased and Sold, by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Purchases	$ 5,940	$ 0	$ 5,940	$ 0
Loans held for investment			144,104	88,986
Total purchases	23,933	13,823	150,044	88,986
Loans held for sale			36,461	0
Total sales	38,530	3,666	45,761	9,582
Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	10,621	0	125,591	72,751
Loans held for sale	28,051	0	34,904	0
Loans Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans held for investment	7,432	13,823	18,513	16,235
Loans held for investment: Total Community Banking	$ 10,479	$ 3,666	$ 10,857	$ 9,582

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ACQUISITIONS - Goodwill Increase (Decrease) (Details) - DC Solar - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2019
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)	$ 2,200
Rental income
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		$ 1,633
Other income
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		315
Impairment
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(9,549)
Income tax benefit
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		1,047
Impact to net income
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(6,554)
Operating lease equipment
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(12,589)
Goodwill
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		1,968
Other assets
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(394)
Liabilities
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(4,461)
Total balance sheet impact
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		(6,554)
Regulatory capital impact
Business Acquisition [Line Items]
Goodwill, Period Increase (Decrease)		$ (8,522)

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LOANS AND LEASES, NET LOANS AND LEASES, NET - Direct Financing and Sales-type Leases, and Lease Receivable Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Net Investment in Leases [Abstract]
Minimum lease payments receivable	$ 366,361	$ 301,835
Estimated residual value of leased equipment	11,328	12,406
Unamortized initial direct costs	4,190	1,806
Premium on acquired leases	9	26
Unearned income	(56,266)	(48,949)
Net investment in direct financing and sales-type leases	325,622	$ 267,124
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]
Remaining in 2019	69,316
2020	115,307
2021	90,333
2022	55,328
2023	29,147
2024 and thereafter	6,930
Total	$ 366,361

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LOANS AND LEASES, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2017	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Sep. 30, 2018	Dec. 31, 2017
Allowance for Credit Losses [Roll Forward]
Beginning balance	$ 21,290		$ 13,040	$ 7,534
Provision (recovery) for loan losses	33,318	$ 18,343	42,417	19,411
Charge offs	(6,523)	(339)	(9,326)	(499)
Recoveries	587	212	2,541	632
Ending balance	48,672		48,672	27,078
Ending balance: individually evaluated for impairment					$ 141	$ 0
Ending balance: collectively evaluated for impairment					48,531	13,040
Total	21,290		13,040	7,534	48,672	13,040	$ 8,862
Loans:
Ending balance: individually evaluated for impairment					16,888	15,611
Ending balance: collectively evaluated for impairment					3,418,128	2,929,378
Total loans and leases					3,435,016	2,944,989
Financing Receivable
Loans:
Total loans and leases					2,247,853	1,846,283
Financing Receivable | Asset based lending
Allowance for Credit Losses [Roll Forward]
Beginning balance	2,065		107
Provision (recovery) for loan losses	1,365		3,528
Charge offs	0		(262)
Recoveries	69		126
Ending balance	3,499		3,499
Ending balance: individually evaluated for impairment					62	0
Ending balance: collectively evaluated for impairment					3,437	107
Total	2,065		107		3,499	107
Loans:
Ending balance: individually evaluated for impairment					5,965	1,404
Ending balance: collectively evaluated for impairment					566,245	476,513
Total loans and leases					572,210	477,917
Financing Receivable | Factoring
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,062		64
Provision (recovery) for loan losses	1,799		3,022
Charge offs	(1,125)		(1,375)
Recoveries	25		50
Ending balance	1,761		1,761
Ending balance: individually evaluated for impairment					12	0
Ending balance: collectively evaluated for impairment					1,749	64
Total	1,062		64		1,761	64
Loans:
Ending balance: individually evaluated for impairment					6,034	3,331
Ending balance: collectively evaluated for impairment					281,921	280,890
Total loans and leases					287,955	284,221
Financing Receivable | Lease financing
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,084		59
Provision (recovery) for loan losses	1,671		1,542
Charge offs	(1,044)		(1,462)
Recoveries	254		1,826
Ending balance	1,965		1,965
Ending balance: individually evaluated for impairment					67	0
Ending balance: collectively evaluated for impairment					1,898	59
Total	1,084		59		1,965	59
Loans:
Ending balance: individually evaluated for impairment					2,299	8,877
Ending balance: collectively evaluated for impairment					319,115	256,438
Total loans and leases					321,414	265,315
Financing Receivable | Insurance premium finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	972		1,031	796
Provision (recovery) for loan losses	1,797	214	1,890	265
Charge offs	(1,877)	(339)	(2,085)	(468)
Recoveries	27	146	83	153
Ending balance	919		919	746
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					919	1,031
Total	972		1,031	796	919	1,031	725
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					307,875	337,877
Total loans and leases					307,875	337,877
Financing Receivable | SBA/USDA
Allowance for Credit Losses [Roll Forward]
Beginning balance	253		13
Provision (recovery) for loan losses	221		461
Charge offs	0		0
Recoveries	0		0
Ending balance	474		474
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					474	13
Total	253		13		474	13
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					77,481	59,374
Total loans and leases					77,481	59,374
Financing Receivable | Other commercial finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	291		28	4
Provision (recovery) for loan losses	234	0	497	0
Charge offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	525		525	4
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					525	28
Total	291		28	4	525	28	4
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					98,956	85,145
Total loans and leases					98,956	85,145
Financing Receivable | Commercial finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	5,727		1,302	800
Provision (recovery) for loan losses	7,087	214	10,940	265
Charge offs	(4,046)	(339)	(5,184)	(468)
Recoveries	375	146	2,085	153
Ending balance	9,143		9,143	750
Ending balance: individually evaluated for impairment					141	0
Ending balance: collectively evaluated for impairment					9,002	1,302
Total	5,727		1,302	800	9,143	1,302	729
Loans:
Ending balance: individually evaluated for impairment					14,298	13,612
Ending balance: collectively evaluated for impairment					1,651,593	1,496,237
Total loans and leases					1,665,891	1,509,849
Financing Receivable | Consumer credit products
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,151		785
Provision (recovery) for loan losses	163		529
Charge offs	0		0
Recoveries	0		0
Ending balance	1,314		1,314
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					1,314	785
Total	1,151		785		1,314	785
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					139,617	80,605
Total loans and leases					139,617	80,605
Financing Receivable | Other consumer finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	4,222		2,820
Provision (recovery) for loan losses	3,336		6,359
Charge offs	(2,456)		(4,079)
Recoveries	28		30
Ending balance	5,130		5,130
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					5,130	2,820
Total	4,222		2,820		5,130	2,820
Loans:
Ending balance: individually evaluated for impairment					1,236	0
Ending balance: collectively evaluated for impairment					169,588	189,756
Total loans and leases					170,824	189,756
Financing Receivable | Consumer finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	5,373		3,605
Provision (recovery) for loan losses	3,499		6,888
Charge offs	(2,456)		(4,079)
Recoveries	28		30
Ending balance	6,444		6,444
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					6,444	3,605
Total	5,373		3,605		6,444	3,605
Loans:
Ending balance: individually evaluated for impairment					1,236	0
Ending balance: collectively evaluated for impairment					309,205	270,361
Total loans and leases					310,441	270,361
Financing Receivable | Tax services
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,546		0	5
Provision (recovery) for loan losses	22,473	18,129	23,969	19,146
Charge offs	(1)	0	(43)	0
Recoveries	84	9	176	422
Ending balance	24,102		24,102	19,573
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					24,102	0
Total	1,546		0	5	24,102	0	1,435
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					84,824	1,073
Total loans and leases					84,824	1,073
Financing Receivable | Warehouse finance
Allowance for Credit Losses [Roll Forward]
Beginning balance	176		65
Provision (recovery) for loan losses	9		120
Charge offs	0		0
Recoveries	0		0
Ending balance	185		185
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					185	65
Total	176		65		185	65
Loans:
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					186,697	65,000
Total loans and leases					186,697	65,000
Financing Receivable | National Lending
Allowance for Credit Losses [Roll Forward]
Beginning balance	12,822		4,972	805
Provision (recovery) for loan losses	33,068	18,343	41,917	19,411
Charge offs	(6,503)	(339)	(9,306)	(468)
Recoveries	487	155	2,291	575
Ending balance	39,874		39,874	20,323
Ending balance: individually evaluated for impairment					141	0
Ending balance: collectively evaluated for impairment					39,733	4,972
Total	12,822		4,972	805	39,874	4,972	2,164
Loans:
Ending balance: individually evaluated for impairment					15,534	13,612
Ending balance: collectively evaluated for impairment					2,232,319	1,832,671
Total loans and leases					2,247,853	1,846,283
Loans Receivable
Allowance for Credit Losses [Roll Forward]
Beginning balance	8,468		8,068	6,729
Provision (recovery) for loan losses	250	0	500	0
Charge offs	(20)	0	(20)	(31)
Recoveries	100	57	250	57
Ending balance	8,798		8,798	6,755
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					8,798	8,068
Total	8,468		8,068	6,729	8,798	8,068	6,698
Loans:
Ending balance: individually evaluated for impairment					1,354	1,999
Ending balance: collectively evaluated for impairment					1,185,809	1,096,707
Total loans and leases					1,187,163	1,098,706
Loans Receivable | Unallocated
Allowance for Credit Losses [Roll Forward]
Beginning balance				526
Provision (recovery) for loan losses		89		463
Charge offs		0		0
Recoveries		0		0
Ending balance				989
Total				526			900
Loans Receivable | Commercial real estate and operating
Allowance for Credit Losses [Roll Forward]
Beginning balance	6,570		6,220	2,820
Provision (recovery) for loan losses	103	951	453	1,280
Charge offs	0	0	0	0
Recoveries	0	0	0	0
Ending balance	6,673		6,673	4,100
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					6,673	6,220
Total	6,570		6,220	2,820	6,673	6,220	3,149
Loans:
Ending balance: individually evaluated for impairment					0	451
Ending balance: collectively evaluated for impairment					869,917	790,439
Total loans and leases					869,917	790,890
Loans Receivable | 1-4 Family Real Estate
Allowance for Credit Losses [Roll Forward]
Beginning balance	719		632	809
Provision (recovery) for loan losses	259	233	346	120
Charge offs	(20)	0	(20)	(31)
Recoveries	0	3	0	3
Ending balance	958		958	901
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					958	632
Total	719		632	809	958	632	665
Loans:
Ending balance: individually evaluated for impairment					134	94
Ending balance: collectively evaluated for impairment					256,945	247,224
Total loans and leases					257,079	247,318
Loans Receivable | Agricultural real estate and operating
Allowance for Credit Losses [Roll Forward]
Beginning balance	1,179		1,216	2,574
Provision (recovery) for loan losses	(112)	(1,273)	(299)	(1,863)
Charge offs	0	0	0	0
Recoveries	100	$ 54	250	54
Ending balance	1,167		1,167	765
Ending balance: individually evaluated for impairment					0	0
Ending balance: collectively evaluated for impairment					1,167	1,216
Total	$ 1,179		$ 1,216	$ 2,574	1,167	1,216	$ 1,984
Loans:
Ending balance: individually evaluated for impairment					1,220	1,454
Ending balance: collectively evaluated for impairment					58,947	59,044
Total loans and leases					$ 60,167	$ 60,498

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LOANS AND LEASES, NET - Asset Classification of Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	$ 3,435,016	$ 2,944,989
Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	3,241,473	2,783,536
Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,002	15,235
Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	154,908	121,639
Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	23,633	24,579
Financing Receivable
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	2,247,853	1,846,283
Financing Receivable | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	2,086,618	1,716,336
Financing Receivable | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	146,216	116,334
Financing Receivable | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,019	13,613
Financing Receivable | Asset based lending
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	572,210	477,917
Financing Receivable | Asset based lending | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	493,351	418,635
Financing Receivable | Asset based lending | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Asset based lending | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	72,894	57,877
Financing Receivable | Asset based lending | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	5,965	1,405
Financing Receivable | Factoring
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	287,955	284,221
Financing Receivable | Factoring | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	237,880	248,246
Financing Receivable | Factoring | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Factoring | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	44,041	32,644
Financing Receivable | Factoring | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	6,034	3,331
Financing Receivable | Lease financing
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	321,414	265,315
Financing Receivable | Lease financing | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	303,742	252,487
Financing Receivable | Lease financing | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Lease financing | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	14,652	3,951
Financing Receivable | Lease financing | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	3,020	8,877
Financing Receivable | Insurance premium finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	307,875	337,877
Financing Receivable | Insurance premium finance | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	307,875	336,296
Financing Receivable | Insurance premium finance | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Insurance premium finance | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	1,581
Financing Receivable | Insurance premium finance | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | SBA/USDA
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	77,481	59,374
Financing Receivable | SBA/USDA | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	63,428	39,093
Financing Receivable | SBA/USDA | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | SBA/USDA | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	14,053	20,281
Financing Receivable | SBA/USDA | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Other commercial finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	98,956	85,145
Financing Receivable | Other commercial finance | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	98,380	85,145
Financing Receivable | Other commercial finance | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Other commercial finance | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	576	0
Financing Receivable | Other commercial finance | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Commercial finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,665,891	1,509,849
Financing Receivable | Commercial finance | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,504,656	1,379,902
Financing Receivable | Commercial finance | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Commercial finance | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	146,216	116,334
Financing Receivable | Commercial finance | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,019	13,613
Financing Receivable | Consumer credit products
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	139,617	80,605
Financing Receivable | Consumer credit products | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	139,617	80,605
Financing Receivable | Consumer credit products | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Consumer credit products | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Consumer credit products | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Other consumer finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	170,824	189,756
Financing Receivable | Other consumer finance | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	170,824	189,756
Financing Receivable | Other consumer finance | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Other consumer finance | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Other consumer finance | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Consumer finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	310,441	270,361
Financing Receivable | Consumer finance | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	310,441	270,361
Financing Receivable | Consumer finance | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Consumer finance | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Consumer finance | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Tax services
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	84,824	1,073
Financing Receivable | Tax services | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	84,824	1,073
Financing Receivable | Tax services | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Tax services | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Tax services | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Warehouse finance
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	186,697	65,000
Financing Receivable | Warehouse finance | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	186,697	65,000
Financing Receivable | Warehouse finance | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Warehouse finance | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Financing Receivable | Warehouse finance | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Receivable
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,187,163	1,098,706
Loans Receivable | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	1,154,855	1,067,200
Loans Receivable | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	15,002	15,235
Loans Receivable | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	8,692	5,305
Loans Receivable | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	8,614	10,966
Loans Receivable | Commercial real estate and operating
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	869,917	790,890
Loans Receivable | Commercial real estate and operating | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	857,897	778,445
Loans Receivable | Commercial real estate and operating | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	6,672	12,251
Loans Receivable | Commercial real estate and operating | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	5,348	194
Loans Receivable | Commercial real estate and operating | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	0	0
Loans Receivable | Consumer one-to-four family real estate and other
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	257,079	247,318
Loans Receivable | Consumer one-to-four family real estate and other | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	253,698	246,463
Loans Receivable | Consumer one-to-four family real estate and other | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	2,999	537
Loans Receivable | Consumer one-to-four family real estate and other | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	306	239
Loans Receivable | Consumer one-to-four family real estate and other | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	76	79
Loans Receivable | Agricultural real estate and operating
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	60,167	60,498
Loans Receivable | Agricultural real estate and operating | Pass
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	43,260	42,292
Loans Receivable | Agricultural real estate and operating | Watch
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	5,331	2,447
Loans Receivable | Agricultural real estate and operating | Special Mention
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	3,038	4,872
Loans Receivable | Agricultural real estate and operating | Substandard
Financing Receivable, Recorded Investment [Line Items]
Total loans and leases	$ 8,538	$ 10,887

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LOANS AND LEASES, NET - Past Due Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	$ 3,435,016	$ 2,944,989
Performing Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	29,716	38,851
Current	3,405,300	2,906,138
Total loans and leases	3,435,016	2,944,989
Performing Financial Instruments | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	16,561	24,022
Performing Financial Instruments | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,127	5,297
Performing Financial Instruments | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	8,028	9,532
Nonperforming Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	9,618	10,201
Non-accrual balance	2,860	2,864
Nonperforming Financial Instruments | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	6,758	7,337
Financing Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,247,853	1,846,283
Financing Receivable | Asset based lending
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	572,210	477,917
Financing Receivable | Factoring
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	287,955	284,221
Financing Receivable | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	321,414	265,315
Financing Receivable | Insurance premium finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	307,875	337,877
Financing Receivable | SBA/USDA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	77,481	59,374
Financing Receivable | Other commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	98,956	85,145
Financing Receivable | Commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,665,891	1,509,849
Financing Receivable | Consumer credit products
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	139,617	80,605
Financing Receivable | Other consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	170,824	189,756
Financing Receivable | Consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	310,441	270,361
Financing Receivable | Tax services
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	84,824	1,073
Financing Receivable | Warehouse finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	186,697	65,000
Financing Receivable | Performing Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	26,809	38,667
Current	2,221,044	1,807,616
Total loans and leases	2,247,853	1,846,283
Financing Receivable | Performing Financial Instruments | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	16,180	23,917
Financing Receivable | Performing Financial Instruments | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,877	5,297
Financing Receivable | Performing Financial Instruments | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,752	9,453
Financing Receivable | Performing Financial Instruments | Asset based lending
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,589	3,480
Current	569,621	474,437
Total loans and leases	572,210	477,917
Financing Receivable | Performing Financial Instruments | Asset based lending | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	799	1,235
Financing Receivable | Performing Financial Instruments | Asset based lending | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,712	2,151
Financing Receivable | Performing Financial Instruments | Asset based lending | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	78	94
Financing Receivable | Performing Financial Instruments | Factoring
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	287,955	284,221
Total loans and leases	287,955	284,221
Financing Receivable | Performing Financial Instruments | Factoring | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Factoring | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Factoring | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	12,279	19,995
Current	309,135	245,320
Total loans and leases	321,414	265,315
Financing Receivable | Performing Financial Instruments | Lease financing | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	9,291	16,542
Financing Receivable | Performing Financial Instruments | Lease financing | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,227	532
Financing Receivable | Performing Financial Instruments | Lease financing | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,761	2,921
Financing Receivable | Performing Financial Instruments | Insurance premium finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	4,416	5,864
Current	303,459	332,013
Total loans and leases	307,875	337,877
Financing Receivable | Performing Financial Instruments | Insurance premium finance | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,009	1,864
Financing Receivable | Performing Financial Instruments | Insurance premium finance | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	767	1,019
Financing Receivable | Performing Financial Instruments | Insurance premium finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,640	2,981
Financing Receivable | Performing Financial Instruments | SBA/USDA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,078	1,067
Current	76,403	58,307
Total loans and leases	77,481	59,374
Financing Receivable | Performing Financial Instruments | SBA/USDA | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,078	1,067
Financing Receivable | Performing Financial Instruments | SBA/USDA | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | SBA/USDA | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Other commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	98,956	85,145
Total loans and leases	98,956	85,145
Financing Receivable | Performing Financial Instruments | Other commercial finance | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Other commercial finance | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Other commercial finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	20,362	30,406
Current	1,645,529	1,479,443
Total loans and leases	1,665,891	1,509,849
Financing Receivable | Performing Financial Instruments | Commercial finance | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	13,177	20,708
Financing Receivable | Performing Financial Instruments | Commercial finance | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,706	3,702
Financing Receivable | Performing Financial Instruments | Commercial finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,479	5,996
Financing Receivable | Performing Financial Instruments | Consumer credit products
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,167	963
Current	137,450	79,642
Total loans and leases	139,617	80,605
Financing Receivable | Performing Financial Instruments | Consumer credit products | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,080	532
Financing Receivable | Performing Financial Instruments | Consumer credit products | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	667	284
Financing Receivable | Performing Financial Instruments | Consumer credit products | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	420	147
Financing Receivable | Performing Financial Instruments | Other consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	3,613	6,225
Current	167,211	183,531
Total loans and leases	170,824	189,756
Financing Receivable | Performing Financial Instruments | Other consumer finance | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,256	2,677
Financing Receivable | Performing Financial Instruments | Other consumer finance | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	504	1,311
Financing Receivable | Performing Financial Instruments | Other consumer finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,853	2,237
Financing Receivable | Performing Financial Instruments | Consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	5,780	7,188
Current	304,661	263,173
Total loans and leases	310,441	270,361
Financing Receivable | Performing Financial Instruments | Consumer finance | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,336	3,209
Financing Receivable | Performing Financial Instruments | Consumer finance | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	1,171	1,595
Financing Receivable | Performing Financial Instruments | Consumer finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,273	2,384
Financing Receivable | Performing Financial Instruments | Tax services
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	667	1,073
Current	84,157	0
Total loans and leases	84,824	1,073
Financing Receivable | Performing Financial Instruments | Tax services | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	667	0
Financing Receivable | Performing Financial Instruments | Tax services | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Tax services | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	1,073
Financing Receivable | Performing Financial Instruments | Warehouse finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Current	186,697	65,000
Total loans and leases	186,697	65,000
Financing Receivable | Performing Financial Instruments | Warehouse finance | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Warehouse finance | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Performing Financial Instruments | Warehouse finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Financing Receivable | Nonperforming Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	7,342	10,122
Non-accrual balance	2,784	2,864
Financing Receivable | Nonperforming Financial Instruments | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	4,558	7,258
Financing Receivable | Nonperforming Financial Instruments | Asset based lending
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	266	94
Non-accrual balance	266	0
Financing Receivable | Nonperforming Financial Instruments | Asset based lending | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	94
Financing Receivable | Nonperforming Financial Instruments | Factoring
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	716	0
Non-accrual balance	716	0
Financing Receivable | Nonperforming Financial Instruments | Factoring | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Lease financing
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,447	3,590
Non-accrual balance	1,802	2,864
Financing Receivable | Nonperforming Financial Instruments | Lease financing | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	645	726
Financing Receivable | Nonperforming Financial Instruments | Insurance premium finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,640	2,981
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Insurance premium finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	1,640	2,981
Financing Receivable | Nonperforming Financial Instruments | SBA/USDA
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | SBA/USDA | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Other commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Other commercial finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Commercial finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	5,069	6,665
Non-accrual balance	2,784	2,864
Financing Receivable | Nonperforming Financial Instruments | Commercial finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	2,285	3,801
Financing Receivable | Nonperforming Financial Instruments | Consumer credit products
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	420	147
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Consumer credit products | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	420	147
Financing Receivable | Nonperforming Financial Instruments | Other consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,853	2,237
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Other consumer finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	1,853	2,237
Financing Receivable | Nonperforming Financial Instruments | Consumer finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,273	2,384
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Consumer finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	2,273	2,384
Financing Receivable | Nonperforming Financial Instruments | Tax services
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	1,073
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Tax services | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	1,073
Financing Receivable | Nonperforming Financial Instruments | Warehouse finance
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Financing Receivable | Nonperforming Financial Instruments | Warehouse finance | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Loans Receivable
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	1,187,163	1,098,706
Loans Receivable | Commercial real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	869,917	790,890
Loans Receivable | 1-4 Family Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	257,079	247,318
Loans Receivable | Agricultural real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	60,167	60,498
Loans Receivable | Performing Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,907	184
Current	1,184,256	1,098,522
Total loans and leases	1,187,163	1,098,706
Loans Receivable | Performing Financial Instruments | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	381	105
Loans Receivable | Performing Financial Instruments | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	250	0
Loans Receivable | Performing Financial Instruments | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,276	79
Loans Receivable | Performing Financial Instruments | Commercial real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	271	0
Current	869,646	790,890
Total loans and leases	869,917	790,890
Loans Receivable | Performing Financial Instruments | Commercial real estate and operating | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	271	0
Loans Receivable | Performing Financial Instruments | Commercial real estate and operating | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable | Performing Financial Instruments | Commercial real estate and operating | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable | Performing Financial Instruments | 1-4 Family Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	436	184
Current	256,643	247,134
Total loans and leases	257,079	247,318
Loans Receivable | Performing Financial Instruments | 1-4 Family Real Estate | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	110	105
Loans Receivable | Performing Financial Instruments | 1-4 Family Real Estate | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	250	0
Loans Receivable | Performing Financial Instruments | 1-4 Family Real Estate | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	76	79
Loans Receivable | Performing Financial Instruments | Agricultural real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,200	0
Current	57,967	60,498
Total loans and leases	60,167	60,498
Loans Receivable | Performing Financial Instruments | Agricultural real estate and operating | 30-59 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable | Performing Financial Instruments | Agricultural real estate and operating | 60-89 Days Past Due
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	0	0
Loans Receivable | Performing Financial Instruments | Agricultural real estate and operating | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total past due	2,200	0
Loans Receivable | Nonperforming Financial Instruments
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,276	79
Non-accrual balance	76	0
Loans Receivable | Nonperforming Financial Instruments | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	2,200	79
Loans Receivable | Nonperforming Financial Instruments | Commercial real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	0	0
Non-accrual balance	0	0
Loans Receivable | Nonperforming Financial Instruments | Commercial real estate and operating | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	0
Loans Receivable | Nonperforming Financial Instruments | 1-4 Family Real Estate
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	76	79
Non-accrual balance	76	0
Loans Receivable | Nonperforming Financial Instruments | 1-4 Family Real Estate | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	0	79
Loans Receivable | Nonperforming Financial Instruments | Agricultural real estate and operating
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total loans and leases	2,200	0
Non-accrual balance	0	0
Loans Receivable | Nonperforming Financial Instruments | Agricultural real estate and operating | Greater Than 90 Days
Financing Receivable, Recorded Investment, Past Due [Line Items]
Non-accrual balance	$ 2,200	$ 0

XML

LOANS AND LEASES, NET - Impaired Loans (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Loans without a specific valuation allowance
Recorded Balance	$ 15,695		$ 15,695		$ 10,198
Unpaid Principal Balance	17,370		17,370		10,528
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,193		1,193		5,413
Unpaid principal balance	1,193		1,193		5,413
Specific allowance	141		141		588
Average Recorded Investment	13,851	$ 2,614	14,590	$ 2,020
Recognized Interest Income	122	61	247	83
Financing Receivable
Loans without a specific valuation allowance
Recorded Balance	14,341		14,341		8,199
Unpaid Principal Balance	15,996		15,996		8,529
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,193		1,193		5,413
Unpaid principal balance	1,193		1,193		5,663
Specific allowance	141		141		588
Average Recorded Investment	12,032	0	12,673	0
Recognized Interest Income	112	0	206	0
Financing Receivable | Asset based lending
Loans without a specific valuation allowance
Recorded Balance	4,887		4,887		1,325
Unpaid Principal Balance	5,399		5,399		1,325
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,078		1,078		79
Unpaid principal balance	1,078		1,078		79
Specific allowance	62		62		22
Average Recorded Investment	3,569	0	2,648	0
Recognized Interest Income	95	0	174	0
Financing Receivable | Factoring
Loans without a specific valuation allowance
Recorded Balance	6,009		6,009		1,383
Unpaid Principal Balance	7,084		7,084		1,713
Loans with a specific valuation allowance [Abstract]
Recorded investment	25		25		1,948
Unpaid principal balance	25		25		2,198
Specific allowance	12		12		49
Average Recorded Investment	3,131	0	2,956	0
Recognized Interest Income	0	0	5	0
Financing Receivable | Lease financing
Loans without a specific valuation allowance
Recorded Balance	2,209		2,209		5,491
Unpaid Principal Balance	2,209		2,209		5,491
Loans with a specific valuation allowance [Abstract]
Recorded investment	90		90		3,386
Unpaid principal balance	90		90		3,386
Specific allowance	67		67		517
Average Recorded Investment	4,100	0	5,842	0
Recognized Interest Income	7	0	17	0
Financing Receivable | Commercial finance
Loans without a specific valuation allowance
Recorded Balance	13,105		13,105		8,199
Unpaid Principal Balance	14,692		14,692		8,529
Loans with a specific valuation allowance [Abstract]
Recorded investment	1,193		1,193		5,413
Unpaid principal balance	1,193		1,193		5,663
Specific allowance	141		141		588
Average Recorded Investment	10,800	0	11,446	0
Recognized Interest Income	102	0	196	0
Financing Receivable | Other consumer finance
Loans without a specific valuation allowance
Recorded Balance	1,236		1,236
Unpaid Principal Balance	1,304		1,304
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,232	0	1,227	0
Recognized Interest Income	10	0	10	0
Financing Receivable | Consumer finance
Loans without a specific valuation allowance
Recorded Balance	1,236		1,236
Unpaid Principal Balance	1,304		1,304
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,232	0	1,227	0
Recognized Interest Income	10	0	10	0
Loans Receivable
Loans without a specific valuation allowance
Recorded Balance	1,354		1,354		1,999
Unpaid Principal Balance	1,373		1,373		1,999
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,819	2,614	1,917	2,020
Recognized Interest Income	10	61	41	83
Loans Receivable | Commercial real estate and operating
Loans without a specific valuation allowance
Recorded Balance					405
Unpaid Principal Balance					405
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	268	705	336	840
Recognized Interest Income	0	5	4	10
Loans Receivable | 1-4 Family Real Estate
Loans without a specific valuation allowance
Recorded Balance	134		134		140
Unpaid Principal Balance	153		153		140
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	137	229	138	165
Recognized Interest Income	0	6	2	9
Loans Receivable | Agricultural real estate and operating
Loans without a specific valuation allowance
Recorded Balance	1,220		1,220		1,454
Unpaid Principal Balance	1,220		1,220		$ 1,454
Loans with a specific valuation allowance [Abstract]
Average Recorded Investment	1,414	1,680	1,443	1,015
Recognized Interest Income	$ 10	$ 50	$ 35	$ 64

XML

LOANS AND LEASES, NET - Narrative and Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans transferred to held for sale			$ 39,452	$ 0
Loans transferred to held for sale			0	0
Originations of Loans Held-for-sale			42,961	0
Increase in loans held for sale			$ (8,760)	0
Percentage of specific allowance for losses			100.00%
Loans and Leases Receivable, Net Amount	$ 3,389,308		$ 3,389,308		$ 2,931,699
Proceeds from sales			36,461	0
Gain (Loss) on Sales of Loans, Net			1,650	0
Financing Receivable
Accounts, Notes, Loans and Financing Receivable [Line Items]
Proceeds from sales	$ 28,051	$ 0	$ 34,904	$ 0
Residential Mortgage | 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Mortgage Loan, Required Mortgage Insurance, Loan-To-Value Ratio Threshold Exposure, Maximum			80.00%
Residential Mortgage | Maximum | 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			30 years
Mortgage Loan, Loan-To-Value Ratio, Appraised Value			100.00%
Mortgage Loan, Loan-To-Value Ratio, Actual Majority of Loans			80.00%
Fixed Rate | Maximum | 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			30 years
Fixed Rate | Financing Receivable | Maximum | Agricultural real estate and operating
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			1 year
Fixed Rate | Financing Receivable | Maximum | Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			10 years
Mortgage Loan, Loan-To-Value Ratio, Appraised Value			75.00%
Fixed Rate | Financing Receivable | Minimum | Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			5 years
Adjustable Rate | Maximum | 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			10 years
Adjustable Rate | Minimum | 1-4 Family Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			5 years
Adjustable Rate | Financing Receivable | Maximum | Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			25 years
Adjustable Rate | Financing Receivable | Minimum | Agricultural Real Estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Maturity period of loans receivable			20 years

XML

LOANS AND LEASES, NET - Troubled Debt Restructured Loans (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019 USD ($) loan	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)
Financing Receivable, Modifications [Line Items]
Foreclosed real estate and repossessed assets	$ 29,548		$ 29,548		$ 31,638
Loans Receivable
Financing Receivable, Modifications [Line Items]
TDRs number of contracts | loan	0
TDRs recorded investment		$ 2,600	100	$ 3,800
TDRs subsequent default, recorded investment			900	$ 100
Financing Receivable
Financing Receivable, Modifications [Line Items]
TDRs recorded investment	$ 1,500		$ 1,600

XML

EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands		3 Months Ended		6 Months Ended
		Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Earnings Per Common Share, Basic and Diluted [Abstract]
Net income attributable to Meta Financial Group, Inc.		$ 32,120	$ 31,436	$ 47,518	$ 36,106
Weighted average common shares outstanding (in shares)		39,429,595	29,061,180	39,381,682	29,015,376
Basic income per common share (in dollars per share)	[1]	$ 0.81	$ 1.08	$ 1.21	$ 1.24
Outstanding options - based upon the two-class method (in shares)		67,237	118,956	68,581	115,038
Weighted average common and dilutive potential common shares outstanding (in shares)		39,496,832	29,180,136	39,450,263	29,130,414
Diluted income per common share (in dollars per share)	[1]	$ 0.81	$ 1.08	$ 1.20	$ 1.24

[1] All share and per share data has been adjusted to reflect the 3-for-1 forward stock split effected by the Company on October 4, 2018.

XML

SECURITIES - Narrative (Details) - USD ($)	6 Months Ended
	Mar. 31, 2019	Oct. 01, 2018	Sep. 30, 2018
Item Effected [Line Items]
Equity securities cost	$ 1,800,000
Equity securities fair value	1,900,000
Equity Securities without readily determinable fair value, amount	2,400,000		$ 2,000,000
Federal Home Loan Bank Stock, at cost	7,436,000		$ 23,400,000
Impairment recognized	$ 0
Accounting Standards Update 2016-01 | Retained Earnings
Item Effected [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 475,000

XML

SECURITIES - Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Available-for-sale debt securities [Abstract]
Fair Value	$ 413,493	$ 364,065
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value		950,499
LESS THAN 12 MONTHS, Unrealized (Losses)		(18,629)
OVER 12 MONTHS, Fair Value		601,825
OVER 12 MONTHS, Unrealized (Losses)		(29,244)
TOTAL, Fair Value		1,552,324
TOTAL, Unrealized (Losses)		(47,873)
AMORTIZED COST
Due in one year or less	1,020	2,532
Due after one year through five years	15,058	41,415
Due after five years through ten years	64,894	352,099
Due after ten years	1,008,514	1,118,283
Total	1,089,486	1,514,329
Mortgage-backed securities	419,024	378,301
Common equities and mutual funds		3,172
Amortized cost	1,508,510	1,895,802
FAIR VALUE
Due in one year or less	1,019	2,529
Due after one year through five years	15,285	41,504
Due after five years through ten years	65,335	350,143
Due after ten years	1,000,024	1,089,984
Total	1,081,663	1,484,160
Mortgage-backed securities	413,493	364,065
Common equities and mutual funds(1)		3,800
Total available for sale securities	1,495,156	1,852,025
Available-for-sale Securities [Member]
Available-for-sale debt securities [Abstract]
Amortized cost		1,895,802
Gross unrealized gains		4,096
Gross unrealized (losses)		(47,873)
Fair Value		1,852,025
Small Business Administration Securities
Available-for-sale debt securities [Abstract]
Amortized cost	163,621	45,591
Gross unrealized gains	637	1
Gross unrealized (losses)	(155)	(1,255)
Fair Value	164,103	44,337
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	41,845	43,097
LESS THAN 12 MONTHS, Unrealized (Losses)	(29)	(1,255)
OVER 12 MONTHS, Fair Value	27,214	0
OVER 12 MONTHS, Unrealized (Losses)	(126)	0
TOTAL, Fair Value	69,059	43,097
TOTAL, Unrealized (Losses)	(155)	(1,255)
Obligations of States and Political Subdivisions
Available-for-sale debt securities [Abstract]
Amortized cost	11,432	17,154
Gross unrealized gains	106	49
Gross unrealized (losses)	(9)	(293)
Fair Value	11,529	16,910
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	0	11,036
LESS THAN 12 MONTHS, Unrealized (Losses)	0	(279)
OVER 12 MONTHS, Fair Value	2,052	881
OVER 12 MONTHS, Unrealized (Losses)	(9)	(14)
TOTAL, Fair Value	2,052	11,917
TOTAL, Unrealized (Losses)	(9)	(293)
Non-bank Qualified Obligations of States and Political Subdivisions
Available-for-sale debt securities [Abstract]
Amortized cost	629,732	1,140,884
Gross unrealized gains	1,357	826
Gross unrealized (losses)	(9,447)	(31,825)
Fair Value	621,642	1,109,885
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	10,210	626,693
LESS THAN 12 MONTHS, Unrealized (Losses)	(2)	(13,539)
OVER 12 MONTHS, Fair Value	448,680	358,095
OVER 12 MONTHS, Unrealized (Losses)	(9,445)	(18,286)
TOTAL, Fair Value	458,890	984,788
TOTAL, Unrealized (Losses)	(9,447)	(31,825)
Asset-backed Securities
Available-for-sale debt securities [Abstract]
Amortized cost	284,701	310,700
Gross unrealized gains	1,286	2,585
Gross unrealized (losses)	(1,598)	(257)
Fair Value	284,389	313,028
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	148,254	146,638
LESS THAN 12 MONTHS, Unrealized (Losses)	(1,539)	(257)
OVER 12 MONTHS, Fair Value	12,184	0
OVER 12 MONTHS, Unrealized (Losses)	(59)	0
TOTAL, Fair Value	160,438	146,638
TOTAL, Unrealized (Losses)	(1,598)	(257)
Mortgage-backed Securities
Available-for-sale debt securities [Abstract]
Amortized cost	419,024	378,301
Gross unrealized gains	1,064	0
Gross unrealized (losses)	(6,595)	(14,236)
Fair Value	413,493	364,065
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	32,722	121,217
LESS THAN 12 MONTHS, Unrealized (Losses)	(13)	(3,292)
OVER 12 MONTHS, Fair Value	282,789	242,849
OVER 12 MONTHS, Unrealized (Losses)	(6,582)	(10,944)
TOTAL, Fair Value	315,511	364,066
TOTAL, Unrealized (Losses)	(6,595)	(14,236)
Debt Securities
Available-for-sale debt securities [Abstract]
Amortized cost	1,508,510	1,892,630
Gross unrealized gains	4,450	3,461
Gross unrealized (losses)	(17,804)	(47,866)
Fair Value	1,495,156	1,848,225
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	233,031	948,681
LESS THAN 12 MONTHS, Unrealized (Losses)	(1,583)	(18,622)
OVER 12 MONTHS, Fair Value	772,919	601,825
OVER 12 MONTHS, Unrealized (Losses)	(16,221)	(29,244)
TOTAL, Fair Value	1,005,950	1,550,506
TOTAL, Unrealized (Losses)	(17,804)	(47,866)
Common Equities and Mutual Funds
Available-for-sale debt securities [Abstract]
Amortized cost	3,592	3,172
Gross unrealized gains	619	635
Gross unrealized (losses)	0	(7)
Fair Value	4,211	3,800
Available-for-sale securities in a continuous unrealized loss position [Abstract]
LESS THAN 12 MONTHS, Fair Value	0	1,818
LESS THAN 12 MONTHS, Unrealized (Losses)	0	(7)
OVER 12 MONTHS, Fair Value	0	0
OVER 12 MONTHS, Unrealized (Losses)	0	0
TOTAL, Fair Value	0	1,818
TOTAL, Unrealized (Losses)	$ 0	$ (7)

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SECURITIES - Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Gross unrealized gains	$ 0	$ 0
Gross unrealized (losses)	(5,434)	(11,180)
Securities held to maturity	149,164	160,563
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
LESS THAN 12 MONTHS, Fair Value	0	5,767
LESS THAN 12 MONTHS, Unrealized (Losses)	0	(287)
OVER 12 MONTHS, Fair Value	149,164	154,796
OVER 12 MONTHS, Unrealized (Losses)	(5,435)	(10,893)
TOTAL, Fair Value	149,164	160,563
TOTAL, Unrealized (Losses)	(5,435)	(11,180)
AMORTIZED COST
Due after ten years	146,992	163,893
Total	146,992	163,893
Mortgage-backed securities	7,606	7,850
Total held to maturity securities at cost	154,598	171,743
FAIR VALUE
Due after ten years	141,768	153,135
Total	141,768	153,135
Mortgage-backed securities	7,396	7,428
Total held to maturity securities	149,164	160,563
Non-bank Qualified Obligations of States and Political Subdivisions
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Gross unrealized gains	0	0
Gross unrealized (losses)	(5,224)	(10,758)
Securities held to maturity	141,768	153,135
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
LESS THAN 12 MONTHS, Fair Value	0	5,767
LESS THAN 12 MONTHS, Unrealized (Losses)	0	(287)
OVER 12 MONTHS, Fair Value	141,768	147,368
OVER 12 MONTHS, Unrealized (Losses)	(5,225)	(10,471)
TOTAL, Fair Value	141,768	153,135
TOTAL, Unrealized (Losses)	(5,225)	(10,758)
AMORTIZED COST
Total held to maturity securities at cost	146,992	163,893
FAIR VALUE
Total held to maturity securities	141,768	153,135
Mortgage-backed Securities
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Gross unrealized gains	0	0
Gross unrealized (losses)	(210)	(422)
Securities held to maturity	7,396	7,428
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract]
LESS THAN 12 MONTHS, Fair Value	0	0
LESS THAN 12 MONTHS, Unrealized (Losses)	0	0
OVER 12 MONTHS, Fair Value	7,396	7,428
OVER 12 MONTHS, Unrealized (Losses)	(210)	(422)
TOTAL, Fair Value	7,396	7,428
TOTAL, Unrealized (Losses)	(210)	(422)
AMORTIZED COST
Total held to maturity securities at cost	7,606	7,850
FAIR VALUE
Total held to maturity securities	$ 7,396	$ 7,428

XML

RENTAL EQUIPMENT, NET Schedule of Rental Equipment (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Property, Plant and Equipment [Line Items]
Rental equipment, gross	$ 188,392	$ 157,372
Accumulated depreciation	(48,305)	(50,082)
Rental equipment, Net book value	140,087	107,290
Computers and IT networking equipment
Property, Plant and Equipment [Line Items]
Rental equipment, gross	43,896	53,035
Motor vehicles and other
Property, Plant and Equipment [Line Items]
Rental equipment, gross	59,589	43,505
Office furniture and equipment
Property, Plant and Equipment [Line Items]
Rental equipment, gross	3,409	3,590
Solar panels and equipment
Property, Plant and Equipment [Line Items]
Rental equipment, gross	$ 81,498	$ 57,242

XML

RENTAL EQUIPMENT, NET Schedule of Operating Leases, Future Minimum Payments (Details) $ in Thousands	Mar. 31, 2019 USD ($)
Property, Plant and Equipment [Abstract]
2019	$ 12,849
2020	20,737
2021	16,290
2022	10,135
2023	8,220
2024 and thereafter	10,164
Total	$ 78,395

XML

GOODWILL AND INTANGIBLE ASSETS Schedule of Goodwill (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018
Goodwill [Roll Forward]
Beginning balance	$ 303,270	$ 98,723
Acquisitions	0	0
Measurement Period Adjustments	4,194
Impairment	0	0
Ending balance	307,464	98,723
Meta Payment Systems
Goodwill [Roll Forward]
Beginning balance	87,145	87,145
Acquisitions	0	0
Measurement Period Adjustments	0
Impairment	0	0
Ending balance	87,145	87,145
Banking
Goodwill [Roll Forward]
Beginning balance	216,125	11,578
Acquisitions	0	0
Measurement Period Adjustments	4,194
Impairment	0	0
Ending balance	220,319	11,578
Corporate Services/Other
Goodwill [Roll Forward]
Beginning balance	0	0
Acquisitions	0	0
Measurement Period Adjustments	0
Impairment	0	0
Ending balance	$ 0	$ 0

XML

GOODWILL AND INTANGIBLE ASSETS Schedule of Intangible Asses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Finite-lived Intangible Assets [Roll Forward]
Balance as of September 30, 2018			$ 70,719	$ 52,178
Acquisitions during the period			78	47
Amortization during the period			(9,978)	(4,412)
Impairment on rental equipment			(313)	(89)
Balance as of March 31, 2019	$ 60,506	$ 47,724	60,506	47,724
Gross carrying amount					$ 109,859	$ 81,830
Accumulated amortization					(38,446)	(23,240)
Accumulated impairment					(10,907)	(10,866)
Balance as of March 31, 2019	60,506	47,724	70,719	52,178	60,506	47,724
Asset impairment charges	100	0	0	0
Other Intangible Assets
Finite-lived Intangible Assets [Roll Forward]
Balance as of September 30, 2018			7,980	8,638
Acquisitions during the period			78	47
Amortization during the period			(487)	(456)
Impairment on rental equipment			(313)	(89)
Balance as of March 31, 2019	7,258	8,140	7,258	8,140
Gross carrying amount					10,667	10,550
Accumulated amortization					(2,750)	(1,792)
Accumulated impairment					(659)	(618)
Balance as of March 31, 2019	7,258	8,140	7,980	8,638	7,258	8,140
Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Balance as of September 30, 2018			48,455	31,707
Acquisitions during the period			0	0
Amortization during the period			(8,742)	(3,388)
Impairment on rental equipment			0	0
Balance as of March 31, 2019	39,713	28,319	39,713	28,319
Gross carrying amount					82,088	57,810
Accumulated amortization					(32,127)	(19,243)
Accumulated impairment					(10,248)	(10,248)
Balance as of March 31, 2019	39,713	28,319	48,455	31,707	39,713	28,319
Noncompete Agreements
Finite-lived Intangible Assets [Roll Forward]
Balance as of September 30, 2018			1,297	1,782
Acquisitions during the period			0	0
Amortization during the period			(235)	(249)
Impairment on rental equipment			0	0
Balance as of March 31, 2019	1,062	1,533	1,062	1,533
Gross carrying amount					2,480	2,480
Accumulated amortization					(1,418)	(947)
Accumulated impairment					0	0
Balance as of March 31, 2019	1,062	1,533	1,297	1,782	1,062	1,533
Trademarks
Finite-lived Intangible Assets [Roll Forward]
Balance as of September 30, 2018			12,987	10,051
Acquisitions during the period			0	0
Amortization during the period			(514)	(319)
Impairment on rental equipment			0	0
Balance as of March 31, 2019	12,473	9,732	12,473	9,732
Gross carrying amount					14,624	10,990
Accumulated amortization					(2,151)	(1,258)
Accumulated impairment					0	0
Balance as of March 31, 2019	$ 12,473	$ 9,732	$ 12,987	$ 10,051	$ 12,473	$ 9,732
Refund Advantage Financial Services Inc | Noncompete Agreements
Finite-lived Intangible Assets [Roll Forward]
Useful life			3 years
Refund Advantage Financial Services Inc | Trademarks
Finite-lived Intangible Assets [Roll Forward]
Useful life			15 years
Minimum | Refund Advantage Financial Services Inc | Other Intangible Assets
Finite-lived Intangible Assets [Roll Forward]
Useful life			3 years
Minimum | Refund Advantage Financial Services Inc | Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Useful life			10 years
Maximum | Refund Advantage Financial Services Inc | Other Intangible Assets
Finite-lived Intangible Assets [Roll Forward]
Useful life			20 years
Maximum | Refund Advantage Financial Services Inc | Customer Relationships
Finite-lived Intangible Assets [Roll Forward]
Useful life			30 years

XML

GOODWILL AND INTANGIBLE ASSETS Schedule of Future Amortization (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018	Mar. 31, 2018	Sep. 30, 2017
Goodwill and Intangible Assets Disclosure [Abstract]
Remaining in 2019	$ 7,731
2020	10,984
2021	8,525
2022	6,399
2023	5,081
2024	4,363
Thereafter	17,423
Balance as of March 31, 2019	$ 60,506	$ 70,719	$ 47,724	$ 52,178

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STOCK COMPENSATION (Details) - USD ($)	6 Months Ended	12 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Number of Shares
Options outstanding, beginning of period (in shares)	155,961
Granted (in shares)	0
Exercised (in shares)	(45,132)
Forfeited or expired (in shares)	(3,027)
Options outstanding, end of period (in shares)	107,802	155,961
Options exercisable, end of period (in shares)	107,802
Weighted Average Exercise Price
Options outstanding, beginning of period (in dollars per share)	$ 8.48
Granted (in dollars per share)	0
Exercised (in dollars per share)	8.95
Forfeited or expired (in dollars per share)	10.60
Options outstanding, end of period (in dollars per share)	8.23	$ 8.48
Options exercisable, end of period (in dollars per share)	$ 8.23
Weighted Average Remaining Contractual Term
Options outstanding	1 year 5 months 19 days	1 year 9 months 11 days
Options exercisable	1 year 5 months 19 days
Aggregate Intrinsic Value
Options outstanding, beginning of period	$ 2,974,000
Granted	0
Exercised	742,000
Forfeited or expired	33,000
Options outstanding, end of period	1,235,000	$ 2,974,000
Options exercisable, end of period	$ 1,235,000
Number of Shares
Nonvested shares outstanding, beginning of period (in shares)	1,005,813
Granted (in shares)	296,302
Vested (in shares)	(347,354)
Forfeited or expired (in shares)	(1,623)
Nonvested shares outstanding, end of period (in shares)	953,138	1,005,813
Weighted Average Fair Value at Grant
Nonvested shares outstanding, beginning of period (in dollars per share)	$ 29.89
Granted (in dollars per share)	24.84
Vested (in dollars per share)	26.78
Forfeited or expired (in dollars per share)	26.17
Nonvested shares outstanding, end of period (in dollars per share)	$ 29.46	$ 29.89
Stock based compensation expense not yet recognized in income	$ 15,800,000
Weighted average remaining period for unrecognized stock based compensation	3 years 1 month 10 days

XML

INCOME TAXES - Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Income tax expense	$ (395)	$ 6,548	$ (2,086)	$ 12,232
Effective tax rate			(4.40%)	25.31%

XML

INCOME TAXES - Schedule of Effective Income Tax Rate Reconciliation (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Income Tax Disclosure [Abstract]
Provision at statutory rate			$ 9,541	$ 11,857
Tax-exempt income			(1,824)	(3,728)
State income taxes			2,143	2,003
Interim period effective rate adjustment			(3,968)	(1,277)
Tax credit investments, net - federal			(9,568)	0
Tax Reform rate adjustment			0	3,635
IRC 162(m) nondeductible compensation			1,561	0
Other, net			29	(258)
Income tax expense	$ (395)	$ 6,548	$ (2,086)	$ 12,232
Effective tax rate			(4.40%)	25.31%

XML

COMMITMENTS AND CONTINGENCIES (Details)		3 Months Ended
	Feb. 09, 2018 USD ($)	Dec. 31, 2014 USD ($)	Mar. 31, 2019 USD ($) commitment	Dec. 24, 2018 USD ($)	Sep. 30, 2018 USD ($) commitment	Oct. 14, 2016 USD ($)
Loss Contingencies [Line Items]
Unfunded loan commitments			$ 860,400,000		$ 748,800,000
Number of investment commitments | commitment			0		1,400,000
Securities, buy (sell) obligations			$ 0		$ 0
Concentration Risk, Credit Risk, Financial Instrument, Off-Balance Sheet Valuation Allowance			$ 100,000		$ 100,000
Inter National Bank [Member]
Loss Contingencies [Line Items]
Amount of shortfall in depository account		$ 10,500,000
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member]
Loss Contingencies [Line Items]
Estimate of possible loss						$ 4,000,000
AFS/IBEX, A Division of MetaBank V. Aegis Managing Agency Limited [Member]
Loss Contingencies [Line Items]
Loss Contingency, Damages Sought, Value	$ 1,600,000
Ohio Valley Bank Company V. Metabank dba Refund Advantage, Case No. 18 CV 134 [Member]
Loss Contingencies [Line Items]
Estimate of possible loss				$ 3,000,000

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($)	Mar. 31, 2019	Oct. 01, 2018	Sep. 30, 2018
Disaggregation of Revenue [Line Items]
Retained earnings	$ 258,600,000		$ 213,048,000
Accounting Standards Update 2014-09
Disaggregation of Revenue [Line Items]
Cumulative Effect of New Accounting Principle in Period of Adoption		$ 1,502,000
Refund Transfer Fees
Disaggregation of Revenue [Line Items]
Accounts Receivable, Gross, Current	$ 0		$ 827,039

XML

REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Revenue From Contracts with Customers by Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019	Mar. 31, 2018	Mar. 31, 2019	Mar. 31, 2018
Disaggregation of Revenue [Line Items]
Net interest income	$ 71,350	$ 27,405	$ 131,622	$ 53,601
Noninterest income	105,025	97,419	142,776	126,687
Revenues	176,375	124,824	274,398	180,288
Refund Transfer Fees
Disaggregation of Revenue [Line Items]
Noninterest income	31,601	33,803	31,862	33,995
Tax Advance Product Fees
Disaggregation of Revenue [Line Items]
Noninterest income	33,038	33,838	34,723	35,785
Credit Card
Disaggregation of Revenue [Line Items]
Noninterest income	23,052	26,856	42,403	52,103
Rental income
Disaggregation of Revenue [Line Items]
Noninterest income	9,890	0	20,780	0
Loan and Lease Fees
Disaggregation of Revenue [Line Items]
Noninterest income	925	1,042	2,173	2,334
Bank Owned Life Insurance
Disaggregation of Revenue [Line Items]
Noninterest income	631	650	1,273	1,319
Deposit Account
Disaggregation of Revenue [Line Items]
Noninterest income	2,093	982	4,031	1,830
Loss on Sale of Securities, Available for Sale
Disaggregation of Revenue [Line Items]
Noninterest income	231	(166)	209	(1,176)
Gain on Loans and Leases
Disaggregation of Revenue [Line Items]
Noninterest income	1,085	0	1,951	0
Loss on Foreclosed Real Estate
Disaggregation of Revenue [Line Items]
Noninterest income	(200)	0	(185)	(19)
Other Revenues for Financial Assets and Liabilities
Disaggregation of Revenue [Line Items]
Noninterest income	2,679	414	3,556	516
Meta Payment Systems
Disaggregation of Revenue [Line Items]
Noninterest income	89,752	95,673	112,578	123,774
Corporate Services/Other
Disaggregation of Revenue [Line Items]
Noninterest income	1,325	505	1,981	187
Operating Segments | Meta Payment Systems
Disaggregation of Revenue [Line Items]
Net interest income	13,607	4,933	23,007	9,602
Noninterest income	89,752	95,673	112,578	123,774
Revenues	103,359	100,606	135,585	133,376
Operating Segments | Meta Payment Systems | Refund Transfer Fees
Disaggregation of Revenue [Line Items]
Noninterest income	31,601	33,803	31,862	33,995
Operating Segments | Meta Payment Systems | Tax Advance Product Fees
Disaggregation of Revenue [Line Items]
Noninterest income	33,038	33,838	34,723	35,785
Operating Segments | Meta Payment Systems | Credit Card
Disaggregation of Revenue [Line Items]
Noninterest income	22,960	26,771	42,233	51,945
Operating Segments | Meta Payment Systems | Rental income
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Meta Payment Systems | Loan and Lease Fees
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Meta Payment Systems | Bank Owned Life Insurance
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Meta Payment Systems | Deposit Account
Disaggregation of Revenue [Line Items]
Noninterest income	1,711	879	3,245	1,607
Operating Segments | Meta Payment Systems | Loss on Sale of Securities, Available for Sale
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Meta Payment Systems | Gain on Loans and Leases
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Meta Payment Systems | Loss on Foreclosed Real Estate
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Meta Payment Systems | Other Revenues for Financial Assets and Liabilities
Disaggregation of Revenue [Line Items]
Noninterest income	442	382	515	442
Operating Segments | Banking
Disaggregation of Revenue [Line Items]
Net interest income	56,271	16,120	108,063	31,717
Noninterest income	13,948	1,241	28,217	2,726
Revenues	70,219	17,361	136,280	34,443
Operating Segments | Banking | Refund Transfer Fees
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Banking | Tax Advance Product Fees
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Banking | Credit Card
Disaggregation of Revenue [Line Items]
Noninterest income	92	85	170	158
Operating Segments | Banking | Rental income
Disaggregation of Revenue [Line Items]
Noninterest income	9,890	0	20,780	0
Operating Segments | Banking | Loan and Lease Fees
Disaggregation of Revenue [Line Items]
Noninterest income	925	1,042	2,173	2,334
Operating Segments | Banking | Bank Owned Life Insurance
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Banking | Deposit Account
Disaggregation of Revenue [Line Items]
Noninterest income	382	103	786	223
Operating Segments | Banking | Loss on Sale of Securities, Available for Sale
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Banking | Gain on Loans and Leases
Disaggregation of Revenue [Line Items]
Noninterest income	1,085	0	1,951	0
Operating Segments | Banking | Loss on Foreclosed Real Estate
Disaggregation of Revenue [Line Items]
Noninterest income	(200)	0	(185)	(19)
Operating Segments | Banking | Other Revenues for Financial Assets and Liabilities
Disaggregation of Revenue [Line Items]
Noninterest income	1,774	11	2,542	30
Operating Segments | Corporate Services/Other
Disaggregation of Revenue [Line Items]
Net interest income	1,472	6,352	552	12,282
Noninterest income	1,325	505	1,981	187
Revenues	2,797	6,857	2,533	12,469
Operating Segments | Corporate Services/Other | Refund Transfer Fees
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Tax Advance Product Fees
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Credit Card
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Rental income
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Loan and Lease Fees
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Bank Owned Life Insurance
Disaggregation of Revenue [Line Items]
Noninterest income	631	650	1,273	1,319
Operating Segments | Corporate Services/Other | Deposit Account
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Loss on Sale of Securities, Available for Sale
Disaggregation of Revenue [Line Items]
Noninterest income	231	(166)	209	(1,176)
Operating Segments | Corporate Services/Other | Gain on Loans and Leases
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Loss on Foreclosed Real Estate
Disaggregation of Revenue [Line Items]
Noninterest income	0	0	0	0
Operating Segments | Corporate Services/Other | Other Revenues for Financial Assets and Liabilities
Disaggregation of Revenue [Line Items]
Noninterest income	$ 463	$ 21	$ 499	$ 44

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FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Available-for-sale debt securities [Abstract]
Mortgage-backed securities available for sale, at fair value	$ 413,493	$ 364,065
Total available for sale securities	1,495,156	1,852,025
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Total held to maturity securities	149,164	160,563
Level 1
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Available-for-sale debt securities [Abstract]
Total available for sale securities	0	3,800
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Total held to maturity securities	0	0
Level 2
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Available-for-sale debt securities [Abstract]
Total available for sale securities	1,495,156	1,848,225
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Total held to maturity securities	149,164	160,974
Level 3
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	3,365,283	2,927,755
Available-for-sale debt securities [Abstract]
Total available for sale securities	0	0
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract]
Total held to maturity securities	0	0
Nonrecurring
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	30,802	36,463
Nonrecurring | Level 1
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Nonrecurring | Level 2
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Nonrecurring | Level 3
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	30,802	36,463
Recurring
Available-for-sale debt securities [Abstract]
Small business administration securities	164,103	44,337
Obligations of states and political subdivisions	11,529	16,910
Non-bank qualified obligations of states and political subdivisions	621,642	1,109,885
Asset-baked securities	284,389	313,028
Mortgage-backed securities	413,493	364,065
Mortgage-backed securities available for sale, at fair value	1,495,156	1,848,225
Common equities and mutual funds	4,211	3,800
Total available for sale securities		1,852,025
Recurring | Level 1
Available-for-sale debt securities [Abstract]
Small business administration securities	0	0
Obligations of states and political subdivisions	0	0
Non-bank qualified obligations of states and political subdivisions	0	0
Asset-baked securities	0	0
Mortgage-backed securities	0	0
Mortgage-backed securities available for sale, at fair value	0	0
Common equities and mutual funds	4,211	3,800
Total available for sale securities		3,800
Recurring | Level 2
Available-for-sale debt securities [Abstract]
Small business administration securities	164,103	44,337
Obligations of states and political subdivisions	11,529	16,910
Non-bank qualified obligations of states and political subdivisions	621,642	1,109,885
Asset-baked securities	284,389	313,028
Mortgage-backed securities	413,493	364,065
Mortgage-backed securities available for sale, at fair value	1,495,156	1,848,225
Common equities and mutual funds	0	0
Total available for sale securities		1,848,225
Recurring | Level 3
Available-for-sale debt securities [Abstract]
Small business administration securities	0	0
Obligations of states and political subdivisions	0	0
Non-bank qualified obligations of states and political subdivisions	0	0
Asset-baked securities	0	0
Mortgage-backed securities	0	0
Mortgage-backed securities available for sale, at fair value	0	0
Common equities and mutual funds	0	0
Total available for sale securities		0
Asset based lending | Nonrecurring
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	1,218	57
Asset based lending | Nonrecurring | Level 1
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Asset based lending | Nonrecurring | Level 2
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Asset based lending | Nonrecurring | Level 3
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	1,218	57
Factoring | Nonrecurring
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	13	1,899
Factoring | Nonrecurring | Level 1
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Factoring | Nonrecurring | Level 2
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Factoring | Nonrecurring | Level 3
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	13	1,899
Lease financing | Nonrecurring
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	23	2,869
Lease financing | Nonrecurring | Level 1
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Lease financing | Nonrecurring | Level 2
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Lease financing | Nonrecurring | Level 3
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	23	2,869
Commercial Portfolio Segment | Nonrecurring
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	1,254	4,825
Commercial Portfolio Segment | Nonrecurring | Level 1
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Commercial Portfolio Segment | Nonrecurring | Level 2
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	0	0
Commercial Portfolio Segment | Nonrecurring | Level 3
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]
Fair value	$ 1,254	$ 4,825

XML

SEGMENT REPORTING (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Mar. 31, 2019 USD ($)	Mar. 31, 2018 USD ($)	Mar. 31, 2019 USD ($) segment	Mar. 31, 2018 USD ($)	Sep. 30, 2018 USD ($)	Sep. 30, 2017 USD ($)
Segment Reporting Information [Line Items]
Number of reportable segments | segment			3
Segment data [Abstract]
Net interest income	$ 71,350	$ 27,405	$ 131,622	$ 53,601
Provision for loan and lease losses	33,318	18,343	42,417	19,411
Noninterest income	105,025	97,419	142,776	126,687
Noninterest expense	110,254	68,497	184,549	112,539
Income (loss) before income tax expense (benefit)	32,803	37,984	47,432	48,338
Total assets	6,050,042	4,301,693	6,050,042	4,301,693	$ 5,835,067
Goodwill	307,464	98,723	307,464	98,723	303,270	$ 98,723
Total deposits	4,970,307	3,340,497	4,970,307	3,340,497	4,430,987
Meta Payment Systems
Segment data [Abstract]
Net interest income	13,607	4,933	23,007	9,602
Provision for loan and lease losses	22,474	18,129	23,969	19,146
Noninterest income	89,752	95,673	112,578	123,774
Noninterest expense	32,178	44,841	53,539	71,796
Income (loss) before income tax expense (benefit)	48,707	37,636	58,077	42,434
Total assets	245,872	243,140	245,872	243,140
Goodwill	87,145	87,145	87,145	87,145	87,145	87,145
Total deposits	3,107,264	2,882,441	3,107,264	2,882,441
Banking
Segment data [Abstract]
Net interest income	56,271	16,120	108,063	31,717
Provision for loan and lease losses	10,844	214	18,448	265
Noninterest income	13,948	1,241	28,217	2,726
Noninterest expense	42,522	6,984	76,365	13,552
Income (loss) before income tax expense (benefit)	16,853	10,163	41,467	20,626
Total assets	3,884,673	1,510,939	3,884,673	1,510,939
Goodwill	220,319	11,578	220,319	11,578	216,125	11,578
Total deposits	482,033	244,149	482,033	244,149
Corporate Services/Other
Segment data [Abstract]
Net interest income	1,472	6,352	552	12,282
Provision for loan and lease losses	0	0	0	0
Noninterest income	1,325	505	1,981	187
Noninterest expense	35,554	16,672	54,645	27,191
Income (loss) before income tax expense (benefit)	(32,757)	(9,815)	(52,112)	(14,722)
Total assets	1,919,497	2,547,614	1,919,497	2,547,614
Goodwill	0	0	0	0	$ 0	$ 0
Total deposits	$ 1,381,010	$ 213,907	$ 1,381,010	$ 213,907

XML

FAIR VALUE MEASUREMENTS - Quantitative Information (Details) - USD ($) $ in Thousands	6 Months Ended
	Mar. 31, 2019	Sep. 30, 2018
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Foreclosed Assets, net	$ 29,548	$ 31,638
Minimum
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Range of estimated selling cost	4.00%
Maximum
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Range of estimated selling cost	10.00%
Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	$ 0	0
Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	3,365,283	2,927,755
Impaired Loans [Member] | Level 3 | Valuation, Market Approach
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254	4,825
Foreclosed Assets | Level 3 | Valuation, Market Approach
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	29,548	31,638
Nonrecurring
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	30,802	36,463
Nonrecurring | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	30,802	36,463
Nonrecurring | Lease financing
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	23	2,869
Nonrecurring | Lease financing | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Lease financing | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Lease financing | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	23	2,869
Nonrecurring | Commercial Portfolio Segment
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254	4,825
Nonrecurring | Commercial Portfolio Segment | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Commercial Portfolio Segment | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Commercial Portfolio Segment | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254	4,825
Nonrecurring | National Lending
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254	4,825
Nonrecurring | National Lending | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | National Lending | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | National Lending | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254	4,825
Nonrecurring | Agricultural Operating
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value		4,825
Nonrecurring | Agricultural Operating | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value		0
Nonrecurring | Agricultural Operating | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value		0
Nonrecurring | Agricultural Operating | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value		4,825
Nonrecurring | Impaired Loans [Member]
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254
Nonrecurring | Impaired Loans [Member] | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0
Nonrecurring | Impaired Loans [Member] | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0
Nonrecurring | Impaired Loans [Member] | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,254
Nonrecurring | Asset based lending
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,218	57
Nonrecurring | Asset based lending | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Asset based lending | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Asset based lending | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	1,218	57
Nonrecurring | Factoring
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	13	1,899
Nonrecurring | Factoring | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Factoring | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	0	0
Nonrecurring | Factoring | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Fair value	13	1,899
Nonrecurring | Foreclosed Assets
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Foreclosed Assets, net	29,548	31,638
Nonrecurring | Foreclosed Assets | Level 1
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Foreclosed Assets, net	0	0
Nonrecurring | Foreclosed Assets | Level 2
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Foreclosed Assets, net	0	0
Nonrecurring | Foreclosed Assets | Level 3
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)
Foreclosed Assets, net	$ 29,548	$ 31,638

XML

FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands	Mar. 31, 2019	Sep. 30, 2018
Financial assets [Abstract]
Securities available for sale	$ 1,495,156	$ 1,852,025
Securities held to maturity	149,164	160,563
Equity Securities, FV-NI	1,900
Financial liabilities [Abstract]
Long-term debt	99,800	88,963
Subordinated debentures	11,583	425,759
Level 1
Financial assets [Abstract]
Cash and cash equivalents	156,461	99,977
Securities available for sale	0	3,800
Securities held to maturity	0	0
Equity Securities, FV-NI	4,211
Total securities	4,211	3,800
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group	0	0
Loans receivable [Abstract]
Total loans receivable	0	0
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	0	0
Accrued interest receivable, fair value disclosure	20,281	22,016
Financial liabilities [Abstract]
Noninterest bearing demand deposits	3,034,428	2,405,274
Interest bearing demand deposits, savings, and money markets	300,033	218,347
Certificates of deposit	0	0
Deposits, Wholesale, Non-Maturing	207,795	94,384
Deposits, Wholesale, Certificates of Deposit	0	0
Total deposits	3,542,256	2,718,005
Federal fund purchased		422,000
Securities sold under agreements to repurchase	0	0
Long-term debt	0	0
Trust Preferred Securities	0	0
Subordinated debentures	0	0
Other borrowings	0
Accrued interest payable	9,239	7,794
Level 2
Financial assets [Abstract]
Cash and cash equivalents	0	0
Securities available for sale	1,495,156	1,848,225
Securities held to maturity	149,164	160,974
Equity Securities, FV-NI	0
Total securities	1,644,320	2,009,199
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group	59,745	15,606
Loans receivable [Abstract]
Total loans receivable	0	0
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	7,436	23,400
Accrued interest receivable, fair value disclosure	0	0
Financial liabilities [Abstract]
Noninterest bearing demand deposits	0	0
Interest bearing demand deposits, savings, and money markets	0	0
Certificates of deposit	153,951	273,800
Deposits, Wholesale, Non-Maturing	0	0
Deposits, Wholesale, Certificates of Deposit	1,272,291	1,432,146
Total deposits	1,426,242	1,705,946
Federal fund purchased		0
Securities sold under agreements to repurchase	2,804	3,694
Long-term debt	1,996	1,876
Trust Preferred Securities	13,878	13,866
Subordinated debentures	75,188	75,563
Other borrowings	19,162
Accrued interest payable	0	0
Level 3
Financial assets [Abstract]
Cash and cash equivalents	0	0
Securities available for sale	0	0
Securities held to maturity	0	0
Equity Securities, FV-NI	0
Total securities	0	0
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group	0	0
Loans receivable [Abstract]
Total loans receivable	3,365,283	2,927,755
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	0	0
Accrued interest receivable, fair value disclosure	0	0
Financial liabilities [Abstract]
Noninterest bearing demand deposits	0	0
Interest bearing demand deposits, savings, and money markets	0	0
Certificates of deposit	0	0
Deposits, Wholesale, Non-Maturing	0	0
Deposits, Wholesale, Certificates of Deposit	0	0
Total deposits	0	0
Federal fund purchased		0
Securities sold under agreements to repurchase	0	0
Long-term debt	0	0
Trust Preferred Securities	0	0
Subordinated debentures	0	0
Other borrowings	0
Accrued interest payable	0	0
Carrying Amount
Financial assets [Abstract]
Cash and cash equivalents	156,461	99,977
Securities available for sale	1,495,156	1,852,025
Securities held to maturity	154,598	172,154
Equity Securities, FV-NI	4,211
Total securities	1,653,965	2,024,179
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group	59,745	15,606
Loans receivable [Abstract]
Total loans receivable	3,435,016	2,944,989
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	7,436	23,400
Accrued interest receivable, fair value disclosure	20,281	22,016
Financial liabilities [Abstract]
Noninterest bearing demand deposits	3,034,428	2,405,274
Interest bearing demand deposits, savings, and money markets	300,033	218,347
Certificates of deposit	154,401	276,180
Deposits, Wholesale, Non-Maturing	207,795	94,384
Deposits, Wholesale, Certificates of Deposit	1,273,650	1,436,802
Total deposits	4,970,307	4,430,987
Federal fund purchased		422,000
Securities sold under agreements to repurchase	2,804	3,694
Long-term debt	1,996	1,876
Trust Preferred Securities	13,661	13,661
Subordinated debentures	73,566	73,491
Other borrowings	19,357
Accrued interest payable	9,239	7,794
Estimated Fair Value
Financial assets [Abstract]
Cash and cash equivalents	156,461	99,977
Securities available for sale	1,495,156	1,852,025
Securities held to maturity	149,164	160,974
Equity Securities, FV-NI	4,211
Total securities	1,648,531	2,012,999
Trade and Loans Receivables Held-for-sale, Net, Not Part of Disposal Group	59,745	15,606
Loans receivable [Abstract]
Total loans receivable	3,365,283	2,927,755
Investment in Federal Home Loan Bank Stock, Fair Value Disclosure	7,436	23,400
Accrued interest receivable, fair value disclosure	20,281	22,016
Financial liabilities [Abstract]
Noninterest bearing demand deposits	3,034,428	2,405,274
Interest bearing demand deposits, savings, and money markets	300,033	218,347
Certificates of deposit	153,951	273,800
Deposits, Wholesale, Non-Maturing	207,795	94,384
Deposits, Wholesale, Certificates of Deposit	1,272,291	1,432,146
Total deposits	4,968,498	4,423,951
Federal fund purchased		422,000
Securities sold under agreements to repurchase	2,804	3,694
Long-term debt	1,996	1,876
Trust Preferred Securities	13,878	13,866
Subordinated debentures	75,188	75,563
Other borrowings	19,162
Accrued interest payable	9,239	7,794
Loans Receivable | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Level 3
Loans receivable [Abstract]
Total loans receivable	1,174,620	1,076,782
Loans Receivable | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	1,187,163	1,098,706
Loans Receivable | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	1,174,620	1,076,782
Loans Receivable | SBA/USDA | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | SBA/USDA | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | SBA/USDA | Level 3
Loans receivable [Abstract]
Total loans receivable	74,407	61,072
Loans Receivable | SBA/USDA | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	77,481	59,374
Loans Receivable | SBA/USDA | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	74,407	61,072
Loans Receivable | Other commercial finance | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Other commercial finance | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Other commercial finance | Level 3
Loans receivable [Abstract]
Total loans receivable	100,038	83,111
Loans Receivable | Other commercial finance | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	98,956	85,145
Loans Receivable | Other commercial finance | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	100,038	83,111
Loans Receivable | Commercial finance | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Commercial finance | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Commercial finance | Level 3
Loans receivable [Abstract]
Total loans receivable	1,637,504	1,506,969
Loans Receivable | Commercial finance | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	1,665,891	1,509,849
Loans Receivable | Commercial finance | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	1,637,504	1,506,969
Loans Receivable | Consumer credit products | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Consumer credit products | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Consumer credit products | Level 3
Loans receivable [Abstract]
Total loans receivable	138,748	80,633
Loans Receivable | Consumer credit products | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	139,617	80,605
Loans Receivable | Consumer credit products | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	138,748	80,633
Loans Receivable | Other consumer finance | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Other consumer finance | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Other consumer finance | Level 3
Loans receivable [Abstract]
Total loans receivable	166,925	197,320
Loans Receivable | Other consumer finance | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	170,824	189,756
Loans Receivable | Other consumer finance | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	166,925	197,320
Loans Receivable | Consumer finance | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Consumer finance | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Consumer finance | Level 3
Loans receivable [Abstract]
Total loans receivable	305,673	277,953
Loans Receivable | Consumer finance | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	310,441	270,361
Loans Receivable | Consumer finance | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	305,673	277,953
Loans Receivable | Tax services | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Tax services | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Tax services | Level 3
Loans receivable [Abstract]
Total loans receivable	60,722	1,073
Loans Receivable | Tax services | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	84,824	1,073
Loans Receivable | Tax services | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	60,722	1,073
Loans Receivable | Warehouse finance | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Warehouse finance | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Warehouse finance | Level 3
Loans receivable [Abstract]
Total loans receivable	186,764	64,978
Loans Receivable | Warehouse finance | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	186,697	65,000
Loans Receivable | Warehouse finance | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	186,764	64,978
Loans Receivable | National Lending | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | National Lending | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | National Lending | Level 3
Loans receivable [Abstract]
Total loans receivable	2,190,663	1,850,973
Loans Receivable | National Lending | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	2,247,853	1,846,283
Loans Receivable | National Lending | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	2,190,663	1,850,973
Loans Receivable | Commercial Real Estate and Operating [Member] | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Commercial Real Estate and Operating [Member] | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Commercial Real Estate and Operating [Member] | Level 3
Loans receivable [Abstract]
Total loans receivable	861,524	773,203
Loans Receivable | Commercial Real Estate and Operating [Member] | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	869,917	790,890
Loans Receivable | Commercial Real Estate and Operating [Member] | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	861,524	773,203
Loans Receivable | 1-4 Family Real Estate | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | 1-4 Family Real Estate | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | 1-4 Family Real Estate | Level 3
Loans receivable [Abstract]
Total loans receivable	254,642	244,730
Loans Receivable | 1-4 Family Real Estate | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	257,079	247,318
Loans Receivable | 1-4 Family Real Estate | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	254,642	244,730
Loans Receivable | Agricultural Real Estate | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Agricultural Real Estate | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Loans Receivable | Agricultural Real Estate | Level 3
Loans receivable [Abstract]
Total loans receivable	58,454	58,849
Loans Receivable | Agricultural Real Estate | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	60,167	60,498
Loans Receivable | Agricultural Real Estate | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	58,454	58,849
Financing Receivable | Asset based lending | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Asset based lending | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Asset based lending | Level 3
Loans receivable [Abstract]
Total loans receivable	551,579	477,471
Financing Receivable | Asset based lending | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	572,210	477,917
Financing Receivable | Asset based lending | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	551,579	477,471
Financing Receivable | Factoring | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Factoring | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Factoring | Level 3
Loans receivable [Abstract]
Total loans receivable	283,337	283,424
Financing Receivable | Factoring | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	287,955	284,221
Financing Receivable | Factoring | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	283,337	283,424
Financing Receivable | Lease financing | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Lease financing | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Lease financing | Level 3
Loans receivable [Abstract]
Total loans receivable	320,411	264,679
Financing Receivable | Lease financing | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	321,414	265,315
Financing Receivable | Lease financing | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	320,411	264,679
Financing Receivable | Insurance premium finance | Level 1
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Insurance premium finance | Level 2
Loans receivable [Abstract]
Total loans receivable	0	0
Financing Receivable | Insurance premium finance | Level 3
Loans receivable [Abstract]
Total loans receivable	307,732	337,212
Financing Receivable | Insurance premium finance | Carrying Amount
Loans receivable [Abstract]
Total loans receivable	307,875	337,877
Financing Receivable | Insurance premium finance | Estimated Fair Value
Loans receivable [Abstract]
Total loans receivable	$ 307,732	$ 337,212

XML

Label	Element	Value
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ (475,000)
Accounting Standards Update 2014-09 [Member] | Parent [Member]
Cumulative Effect of New Accounting Principle in Period of Adoption	us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption	$ 1,502,000