XML 48 R14.htm IDEA: XBRL DOCUMENT v2.4.0.8
SECURITIES
 6 Months Ended
Mar. 31, 2014
SECURITIES [Abstract]  
SECURITIES
NOTE 5.
SECURITIES
 
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at March 31, 2014 and September 30, 2013 are presented below.
 
Available For Sale
 
  
  
  
 
March 31, 2014
 
Amortized Cost
  
Gross
Unrealized Gains
  
Gross
Unrealized (Losses)
  
Fair Value
 
 
 
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred and corporate securities
 
$
55,902
  
$
184
  
$
(3,641
)
 
$
52,445
 
Small Business Administration securities
  
52,799
   
632
   
-
   
53,431
 
Non-bank qualified obligations of states and political subdivisions
  
321,754
   
290
   
(11,303
)
  
310,741
 
Common equities and mutual funds
  
541
   
282
   
(9
)
  
814
 
Mortgage-backed securities
  
629,973
   
3,204
   
(17,005
)
  
616,172
 
Total debt securities
 
$
1,060,969
  
$
4,592
  
$
(31,958
)
 
$
1,033,603
 
 
                
September 30, 2013
 
Amortized Cost
  
Gross
Unrealized Gains
  
Gross
Unrealized (Losses)
  
Fair Value
 
 
 
(Dollars in Thousands)
 
Debt securities
                
Trust preferred and corporate securities
 
$
52,897
  
$
136
  
$
(4,249
)
 
$
48,784
 
Small Business Administration securities
  
10,099
   
482
   
-
   
10,581
 
Obligations of states and political subdivisions
  
1,880
   
-
   
(153
)
  
1,727
 
Non-bank qualified obligations of states and political subdivisions
  
255,189
   
-
   
(16,460
)
  
238,729
 
Mortgage-backed securities
  
596,343
   
3,968
   
(18,939
)
  
581,372
 
Total debt securities
 
$
916,408
  
$
4,586
  
$
(39,801
)
 
$
881,193
 

Held to Maturity
 
  
  
  
 
March 31, 2014
 
Amortized Cost
  
Gross
Unrealized Gains
  
Gross
Unrealized (Losses)
  
Estimated
Fair Value
 
 
 
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Agency and instrumentality securities
 
$
10,000
  
$
-
  
$
(303
)
 
$
9,697
 
Obligations of states and political subdivisions
  
18,567
   
22
   
(804
)
  
17,785
 
Non-bank qualified obligations of states and political subdivisions
  
188,068
   
296
   
(7,856
)
  
180,508
 
Mortgage-backed securities
  
73,676
   
-
   
(3,492
)
  
70,184
 
Total debt securities
 
$
290,311
  
$
318
  
$
(12,455
)
 
$
278,174
 
 
                
September 30, 2013
 
Amortized Cost
  
Gross
Unrealized Gains
  
Gross
Unrealized (Losses)
  
Estimated
Fair Value
 
 
 
(Dollars in Thousands)
 
Debt securities
                
Agency and instrumentality securities
 
$
10,003
  
$
-
  
$
(390
)
 
$
9,613
 
Obligations of states and political subdivisions
  
19,549
   
13
   
(1,220
)
  
18,342
 
Non-bank qualified obligations of states and political subdivisions
  
181,547
   
-
   
(12,085
)
  
169,462
 
Mortgage-backed securities
  
76,927
   
-
   
(3,826
)
  
73,101
 
Total debt securities
 
$
288,026
  
$
13
  
$
(17,521
)
 
$
270,518
 

Included in securities available for sale are trust preferred securities as follows:
 
At March 31, 2014
 
  
  
  
  
 
Issuer(1)
 
Amortized
Cost
  
Fair Value
  
Unrealized
(Loss)
  
S&P
Credit Rating
  
Moody's
Credit Rating
 
 
 
(Dollars in Thousands)
      
 
 
 
  
  
      
 
Key Corp. Capital I
 
$
4,985
  
$
4,216
  
$
(769
)
 
BBB-
  
Baa3
 
Huntington Capital Trust II SE
  
4,976
   
4,100
   
(876
)
 
BB+
  
Baa3
 
PNC Capital Trust
  
4,961
   
4,162
   
(799
)
 
BBB
  
Baa2
 
Wells Fargo (Corestates Capital) Trust
  
4,421
   
4,173
   
(248
)
 A-  A3 
Total
 
$
19,343
  
$
16,651
  
$
(2,692
)
        
 
 
(1) Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

At September 30, 2013
 
  
  
  
  
 
Issuer(1)
 
Amortized
Cost
  
Fair Value
  
Unrealized
(Loss)
  
S&P
Credit Rating
  
Moody's
Credit Rating
 
 
 
(Dollars in Thousands)
      
 
 
 
  
  
      
 
Key Corp. Capital I
 
$
4,984
  
$
4,100
  
$
(884
)
 
BBB-
  
Baa3
 
Huntington Capital Trust II SE
  
4,976
   
4,075
   
(901
)
 
BB+
  
Baa3
 
PNC Capital Trust
  
4,959
   
4,175
   
(784
)
 
BBB
  
Baa2
 
Wells Fargo (Corestates Capital) Trust
  
4,399
   
4,050
   
(349
)
 A-  A3 
Total
 
$
19,318
  
$
16,400
  
$
(2,918
)
        
 
 
(1) Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

Management has a process to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, and projecting cash flows.  Other factors, but not necessarily all, considered are: that the risk of loss is minimized and easier to determine due to the single-issuer, rather than pooled, nature of the securities, the financial condition of the issuers listed, and whether there have been any payment deferrals or defaults to-date.  Such factors are subject to change over time.
 
Management also determines if it is more likely than not we will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity.  To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities that are considered temporarily impaired, the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity.  The Company believes that it will collect all principal and interest due on all investments that have amortized cost in excess of fair value that are considered only temporarily impaired.
Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for sale (“AFS”), Held to Maturity (“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. Meta Financial has no trading securities.
 
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at March 31, 2014 and September 30, 2013, are as follows:
 
Available For Sale
 
  
  
  
  
  
 
 
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
 
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
March 31, 2014
 
Value
  
(Losses)
  
Value
  
(Losses)
  
Value
  
(Losses)
 
 
 
(Dollars in Thousands)
 
Debt securities
 
  
  
  
  
  
 
Trust preferred and corporate securities
 
$
16,988
  
$
(545
)
 
$
22,313
  
$
(3,096
)
 
$
39,301
  
$
(3,641
)
Non-bank qualified obligations of states and political subdivisions
  
164,930
   
(5,699
)
  
97,806
   
(5,604
)
  
262,736
   
(11,303
)
Common equities and mutual funds
  
121
   
(9
)
  
-
   
-
   
121
   
(9
)
Mortgage-backed securities
  
314,012
   
(14,592
)
  
52,134
   
(2,413
)
  
366,146
   
(17,005
)
Total debt securities
 
$
496,051
  
$
(20,845
)
 
$
172,253
  
$
(11,113
)
 
$
668,304
  
$
(31,958
)
 
                        
 
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
 
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
September 30, 2013
 
Value
  
(Losses)
  
Value
  
(Losses)
  
Value
  
(Losses)
 
 
 
(Dollars in Thousands)
 
Debt securities
                        
Trust preferred and corporate securities
 
$
29,312
  
$
(1,433
)
 
$
13,477
  
$
(2,816
)
 
$
42,789
  
$
(4,249
)
Obligations of states and political subdivisions
  
1,727
   
(153
)
  
-
   
-
   
1,727
   
(153
)
Non-bank qualified obligations of states and political subdivisions
  
238,729
   
(16,460
)
  
-
   
-
   
238,729
   
(16,460
)
Mortgage-backed securities
  
357,850
   
(18,939
)
  
-
   
-
   
357,850
   
(18,939
)
Total debt securities
 
$
627,618
  
$
(36,985
)
 
$
13,477
  
$
(2,816
)
 
$
641,095
  
$
(39,801
)

Held to Maturity
 
  
  
  
  
  
 
 
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
 
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
March 31, 2014
 
Value
  
(Losses)
  
Value
  
(Losses)
  
Value
  
(Losses)
 
 
 
(Dollars in Thousands)
 
Debt securities
 
  
  
  
  
  
 
Agency and instrumentality securities
 
$
9,697
  
$
(303
)
 
$
-
  
$
-
  
$
9,697
  
$
(303
)
Obligations of states and political subdivisions
  
12,828
   
(583
)
  
2,991
   
(221
)
  
15,819
   
(804
)
Non-bank qualified obligations of states and political subdivisions
  
123,726
   
(5,947
)
  
42,631
   
(1,909
)
  
166,357
   
(7,856
)
Mortgage-backed securities
  
70,183
   
(3,492
)
  
-
   
-
   
70,183
   
(3,492
)
Total debt securities
 
$
216,434
  
$
(10,325
)
 
$
45,622
  
$
(2,130
)
 
$
262,056
  
$
(12,455
)
 
                        
 
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
 
Fair
  
Unrealized
  
Fair
  
Unrealized
  
Fair
  
Unrealized
 
September 30, 2013
 
Value
  
(Losses)
  
Value
  
(Losses)
  
Value
  
(Losses)
 
 
 
(Dollars in Thousands)
 
Debt securities
                        
Agency and instrumentality securities
 
$
9,613
  
$
(390
)
 
$
-
  
$
-
  
$
9,613
  
$
(390
)
Obligations of states and political subdivisions
  
17,253
   
(1,220
)
  
-
   
-
   
17,253
   
(1,220
)
Non-bank qualified obligations of states and political subdivisions
  
169,462
   
(12,085
)
  
-
   
-
   
169,462
   
(12,085
)
Mortgage-backed securities
  
73,101
   
(3,826
)
  
-
   
-
   
73,101
   
(3,826
)
Total debt securities
 
$
269,429
  
$
(17,521
)
 
$
-
  
$
-
  
$
269,429
  
$
(17,521
)

At March 31, 2014, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, no other-than-temporary impairment was recorded at March 31, 2014.

The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in 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 Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
 
Available For Sale
    
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
March 31, 2014
 
(Dollars in Thousands)
 
 
 
  
 
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
11,172
   
11,362
 
Due after five years through ten years
  
243,806
   
238,203
 
Due after ten years
  
176,018
   
167,866
 
 
  
430,996
   
417,431
 
Mortgage-backed securities
  
629,973
   
616,172
 
Total debt securities
 
$
1,060,969
  
$
1,033,603
 
 
        
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
September 30, 2013
 
(Dollars in Thousands)
 
 
        
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
9,929
   
10,061
 
Due after five years through ten years
  
162,203
   
155,014
 
Due after ten years
  
147,933
   
134,746
 
 
  
320,065
   
299,821
 
Mortgage-backed securities
  
596,343
   
581,372
 
Total debt securities
 
$
916,408
  
$
881,193
 
 
Held To Maturity
 
 
  
 
 
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
March 31, 2014
 
(Dollars in Thousands)
 
 
 
  
 
Due in one year or less
 
$
345
  
$
346
 
Due after one year through five years
  
4,112
   
4,063
 
Due after five years through ten years
  
71,453
   
68,424
 
Due after ten years
  
140,725
   
135,157
 
 
  
216,635
   
207,990
 
Mortgage-backed securities
  
73,676
   
70,184
 
Total debt securities
 
$
290,311
  
$
278,174
 
 
        
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
September 30, 2013
 
(Dollars in Thousands)
 
 
        
Due in one year or less
 
$
649
  
$
649
 
Due after one year through five years
  
2,234
   
2,203
 
Due after five years through ten years
  
50,547
   
47,519
 
Due after ten years
  
157,669
   
147,046
 
 
  
211,099
   
197,417
 
Mortgage-backed securities
  
76,927
   
73,101
 
Total debt securities
 
$
288,026
  
$
270,518