Delaware
|
42-1406262
|
|
(State or other jurisdiction of incorporation or organization)
|
(I.R.S. Employer Identification No.)
|
Large accelerated filer☐
|
Accelerated filer☒
|
Non-accelerated filer☐
|
Smaller Reporting Company☐
|
Class:
|
Outstanding at May 2, 2016:
|
Common Stock, $.01 par value
|
8,504,034 Common Shares
|
Nonvoting Common Stock, $.01 par value
|
0 Common Shares
|
2
|
||
Item 1.
|
2
|
|
2
|
||
3
|
||
4
|
||
5
|
||
6
|
||
7
|
||
Item 2.
|
38
|
|
Item 3.
|
52
|
|
Item 4.
|
58
|
|
60
|
||
Item 1.
|
60
|
|
Item 1A.
|
60
|
|
Item 2.
|
62
|
|
Item 3.
|
62
|
|
Item 4.
|
62
|
|
Item 5.
|
62
|
|
Item 6.
|
62
|
|
63
|
ASSETS
|
March 31, 2016
|
September 30, 2015
|
||||||
Cash and cash equivalents
|
$
|
39,480
|
$
|
27,658
|
||||
Investment securities available for sale
|
866,152
|
679,504
|
||||||
Mortgage-backed securities available for sale
|
688,952
|
576,583
|
||||||
Investment securities held to maturity
|
417,271
|
279,167
|
||||||
Mortgage-backed securities held to maturity
|
68,497
|
66,577
|
||||||
Loans receivable - net of allowance for loan losses of $7,431 at March 31, 2016 and $6,255 at September 30, 2015
|
777,451
|
706,255
|
||||||
Federal Home Loan Bank Stock, at cost
|
22,431
|
24,410
|
||||||
Accrued interest receivable
|
15,783
|
13,352
|
||||||
Premises, furniture, and equipment, net
|
18,212
|
17,393
|
||||||
Bank-owned life insurance
|
56,584
|
45,830
|
||||||
Goodwill
|
36,928
|
36,928
|
||||||
Intangible assets
|
31,272
|
33,577
|
||||||
Prepaid assets
|
10,014
|
9,360
|
||||||
Deferred taxes
|
787
|
6,997
|
||||||
Meta Payment Systems accounts receivable
|
6,235
|
5,337
|
||||||
Other assets
|
15,693
|
777
|
||||||
Total assets
|
$
|
3,071,742
|
$
|
2,529,705
|
||||
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
||||||||
LIABILITIES
|
||||||||
Non-interest-bearing checking
|
$
|
2,013,783
|
$
|
1,449,101
|
||||
Interest-bearing checking
|
37,469
|
33,320
|
||||||
Savings deposits
|
73,357
|
41,720
|
||||||
Money market deposits
|
44,351
|
42,222
|
||||||
Time certificates of deposit
|
51,801
|
91,171
|
||||||
Total deposits
|
2,220,761
|
1,657,534
|
||||||
Advances from Federal Home Loan Bank
|
7,000
|
7,000
|
||||||
Federal funds purchased
|
465,000
|
540,000
|
||||||
Securities sold under agreements to repurchase
|
1,626
|
4,007
|
||||||
Subordinated debentures
|
10,310
|
10,310
|
||||||
Capital lease
|
2,081
|
2,143
|
||||||
Accrued interest payable
|
167
|
272
|
||||||
Contingent liability
|
431
|
331
|
||||||
Accrued expenses and other liabilities
|
51,079
|
36,773
|
||||||
Total liabilities
|
2,758,455
|
2,258,370
|
||||||
STOCKHOLDERS’ EQUITY
|
||||||||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2016 and September 30, 2015, respectively
|
-
|
-
|
||||||
Common stock, $.01 par value; 15,000,000 shares authorized, 8,501,077 shares issued and outstanding at March 31, 2016 and 8,183,272 shares issued and 8,163,022 shares outstanding at September 30, 2015
|
85
|
82
|
||||||
Common stock, Nonvoting, $.01 par value; 3,000,000 shares authorized,no shares issued or outstanding at March 31, 2016 and September 30, 2015, respectively
|
-
|
-
|
||||||
Additional paid-in capital
|
184,347
|
170,749
|
||||||
Retained earnings
|
114,526
|
98,359
|
||||||
Accumulated other comprehensive income (loss)
|
14,329
|
2,455
|
||||||
Treasury stock, at cost, no common shares at March 31, 2016 and 20,250 common shares at September 30, 2015
|
-
|
(310
|
)
|
|||||
Total stockholders’ equity
|
313,287
|
271,335
|
||||||
Total liabilities and stockholders’ equity
|
$
|
3,071,742
|
$
|
2,529,705
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
|
2016
|
2015
|
2016
|
2015
|
||||||||||||
Interest and dividend income:
|
||||||||||||||||
Loans receivable, including fees
|
$
|
8,548
|
$
|
7,637
|
$
|
16,867
|
$
|
14,033
|
||||||||
Mortgage-backed securities
|
4,768
|
3,919
|
8,481
|
7,743
|
||||||||||||
Other investments
|
7,313
|
4,203
|
13,556
|
8,215
|
||||||||||||
20,629
|
15,759
|
38,904
|
29,991
|
|||||||||||||
Interest expense:
|
||||||||||||||||
Deposits
|
135
|
172
|
298
|
404
|
||||||||||||
FHLB advances and other borrowings
|
556
|
301
|
1,113
|
730
|
||||||||||||
691
|
473
|
1,411
|
1,134
|
|||||||||||||
Net interest income
|
19,938
|
15,286
|
37,493
|
28,857
|
||||||||||||
Provision (recovery) for loan losses
|
1,173
|
593
|
1,959
|
641
|
||||||||||||
Net interest income after provision for loan losses
|
18,765
|
14,693
|
35,534
|
28,216
|
||||||||||||
Non-interest income:
|
||||||||||||||||
Tax product fees
|
19,638
|
-
|
19,638
|
-
|
||||||||||||
Card fees
|
18,579
|
13,663
|
33,835
|
26,752
|
||||||||||||
Loan fees
|
2,216
|
813
|
3,035
|
1,127
|
||||||||||||
Bank-owned life insurance
|
380
|
280
|
754
|
566
|
||||||||||||
Deposit fees
|
151
|
141
|
313
|
297
|
||||||||||||
Gain (loss) on sale of securities available for sale, net (Includes $29 and $50 reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the threeand six months ended March 31, 2016, respectively)
|
29
|
17
|
50
|
(1,243
|
)
|
|||||||||||
Gain (loss) on foreclosed real estate
|
-
|
2
|
-
|
28
|
||||||||||||
Other income (loss)
|
(92
|
)
|
54
|
110
|
117
|
|||||||||||
Total non-interest income
|
40,901
|
14,970
|
57,735
|
27,644
|
||||||||||||
Non-interest expense:
|
||||||||||||||||
Compensation and benefits
|
17,110
|
11,668
|
31,765
|
22,199
|
||||||||||||
Tax product expense
|
8,256
|
-
|
8,256
|
-
|
||||||||||||
Card processing
|
6,017
|
3,810
|
11,251
|
8,506
|
||||||||||||
Occupancy and equipment
|
3,659
|
2,835
|
7,038
|
5,438
|
||||||||||||
Legal and consulting
|
859
|
996
|
1,990
|
2,217
|
||||||||||||
Marketing
|
539
|
341
|
1,041
|
645
|
||||||||||||
Data processing
|
357
|
331
|
698
|
681
|
||||||||||||
Other expense
|
4,993
|
3,439
|
9,759
|
6,147
|
||||||||||||
Total non-interest expense
|
41,790
|
23,420
|
71,798
|
45,833
|
||||||||||||
Income before income tax expense
|
17,876
|
6,243
|
21,471
|
10,027
|
||||||||||||
Income tax expense (Includes $11 and $18 income tax expense reclassified from accumulated other comprehensive income (loss) for the three and six months ended March 31, 2016, respectively)
|
3,593
|
1,062
|
3,130
|
1,251
|
||||||||||||
Net income
|
$
|
14,283
|
$
|
5,181
|
$
|
18,341
|
$
|
8,776
|
||||||||
Earnings per common share:
|
||||||||||||||||
Basic
|
$
|
1.69
|
$
|
0.79
|
$
|
2.20
|
$
|
1.38
|
||||||||
Diluted
|
$
|
1.68
|
$
|
0.78
|
$
|
2.18
|
$
|
1.37
|
Three Months Ended
March 31,
|
Six Months Ended
March 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Net income
|
$
|
14,283
|
$
|
5,181
|
$
|
18,341
|
$
|
8,776
|
||||||||
Other comprehensive income (loss):
|
||||||||||||||||
Change in net unrealized gain (loss) on securities
|
16,216
|
5,940
|
18,837
|
12,452
|
||||||||||||
Losses (gains) realized in net income
|
(29
|
)
|
(17
|
)
|
(50
|
)
|
1,243
|
|||||||||
16,187
|
5,923
|
18,787
|
13,695
|
|||||||||||||
Deferred income tax effect
|
5,938
|
2,189
|
6,913
|
5,024
|
||||||||||||
Total other comprehensive income (loss)
|
10,249
|
3,734
|
11,874
|
8,671
|
||||||||||||
Total comprehensive income (loss)
|
$
|
24,532
|
$
|
8,915
|
$
|
30,215
|
$
|
17,447
|
Common
Stock
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other
Comprehensive
Income (Loss)
|
Treasury
Stock
|
Total
Stockholders’
Equity
|
|||||||||||||||||||
Balance, September 30, 2014
|
$
|
62
|
$
|
95,079
|
$
|
83,797
|
$
|
(3,409
|
)
|
$
|
(727
|
)
|
$
|
174,802
|
||||||||||
Cash dividends declared on common stock ($0.26 per share)
|
-
|
-
|
(1,686
|
)
|
-
|
-
|
(1,686
|
)
|
||||||||||||||||
Issuance of common shares from the sales of equity securities
|
8
|
25,282
|
-
|
-
|
-
|
25,290
|
||||||||||||||||||
Issuance of common shares due to issuance of stock options, restricted stock and ESOP
|
-
|
176
|
-
|
-
|
417
|
593
|
||||||||||||||||||
Net change in unrealized losses on securities, net of income taxes
|
-
|
-
|
-
|
8,671
|
-
|
8,671
|
||||||||||||||||||
Net income
|
-
|
-
|
8,776
|
-
|
-
|
8,776
|
||||||||||||||||||
Balance, March 31, 2015
|
$
|
70
|
$
|
120,537
|
$
|
90,887
|
$
|
5,262
|
$
|
(310
|
)
|
$
|
216,446
|
|||||||||||
Balance, September 30, 2015
|
$
|
82
|
$
|
170,749
|
$
|
98,359
|
$
|
2,455
|
$
|
(310
|
)
|
$
|
271,335
|
|||||||||||
Cash dividends declared on common stock ($0.26 per share)
|
-
|
-
|
(2,174
|
)
|
-
|
-
|
(2,174
|
)
|
||||||||||||||||
Issuance of common shares from the sales of equity securities
|
2
|
11,520
|
-
|
-
|
-
|
11,522
|
||||||||||||||||||
Issuance of common shares due to issuance of stock options, restricted stock and ESOP
|
1
|
1,412
|
-
|
-
|
310
|
1,723
|
||||||||||||||||||
Stock compensation
|
-
|
666
|
-
|
-
|
-
|
666
|
||||||||||||||||||
Net change in unrealized gains on securities, net of income taxes
|
-
|
-
|
-
|
11,874
|
-
|
11,874
|
||||||||||||||||||
Net income
|
-
|
-
|
18,341
|
-
|
-
|
18,341
|
||||||||||||||||||
Balance, March 31, 2016
|
$
|
85
|
$
|
184,347
|
$
|
114,526
|
$
|
14,329
|
$
|
-
|
$
|
313,287
|
Six Months Ended March 31,
|
||||||||
|
2016
|
2015
|
||||||
Cash flows from operating activities:
|
||||||||
Net income
|
$
|
18,341
|
$
|
8,776
|
||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||
Depreciation, amortization and accretion, net
|
17,569
|
12,097
|
||||||
Provision (recovery) for loan losses
|
1,959
|
641
|
||||||
Provision (recovery) for deferred taxes
|
(703
|
)
|
(1,236
|
)
|
||||
(Gain) loss on other assets
|
10
|
(646
|
)
|
|||||
(Gain) loss on sale of securities available for sale, net
|
(50
|
)
|
1,243
|
|||||
Capital lease obligations interest expense
|
(63
|
)
|
(66
|
)
|
||||
Net change in accrued interest receivable
|
(2,431
|
)
|
(1,245
|
)
|
||||
Change in bank-owned life insurance value
|
(754
|
)
|
(565
|
)
|
||||
Net change in other assets
|
(6,092
|
)
|
619
|
|||||
Net change in accrued interest payable
|
(105
|
)
|
(157
|
)
|
||||
Net change in accrued expenses and other liabilities
|
14,454
|
19,432
|
||||||
Net cash provided by (used in) operating activities
|
42,135
|
38,893
|
||||||
Cash flows from investing activities:
|
||||||||
Purchase of securities available-for-sale
|
(454,450
|
)
|
(376,357
|
)
|
||||
Proceeds from sales of securities available-for-sale
|
100,298
|
264,631
|
||||||
Proceeds from maturities and principal repayments of securities available-for-sale
|
52,991
|
53,414
|
||||||
Purchase of securities held to maturity
|
(147,906
|
)
|
(33,526
|
)
|
||||
Proceeds from maturities and principal repayments of securities held to maturity
|
6,059
|
4,078
|
||||||
Purchase of bank owned life insurance
|
(10,000
|
)
|
-
|
|||||
Loans sold
|
88
|
(5,472
|
)
|
|||||
Net change in loans receivable
|
(73,243
|
)
|
(46,786
|
)
|
||||
Proceeds from sales of foreclosed real estate
|
-
|
43
|
||||||
Net cash paid for acquisition
|
-
|
(92,308
|
)
|
|||||
Federal Home Loan Bank stock purchases
|
(403,981
|
)
|
(215,085
|
)
|
||||
Federal Home Loan Bank stock redemptions
|
405,960
|
223,080
|
||||||
Proceeds from the sale of premises and equipment
|
13
|
2,096
|
||||||
Purchase of premises and equipment
|
(3,663
|
)
|
(2,148
|
)
|
||||
Net cash provided by (used in) investing activities
|
(527,834
|
)
|
(224,340
|
)
|
||||
Cash flows from financing activities:
|
||||||||
Net change in checking, savings, and money market deposits
|
602,597
|
437,012
|
||||||
Net change in time deposits
|
(39,370
|
)
|
(72,881
|
)
|
||||
Net change in federal funds
|
(75,000
|
)
|
(209,000
|
)
|
||||
Net change in securities sold under agreements to repurchase
|
(2,381
|
)
|
1,226
|
|||||
Principal payments on capital lease obligations
|
(62
|
)
|
(56
|
)
|
||||
Cash dividends paid
|
(2,174
|
)
|
(1,686
|
)
|
||||
Stock compensation
|
666
|
-
|
||||||
Proceeds from issuance of common stock
|
13,245
|
25,883
|
||||||
Net cash provided by (used in) financing activities
|
497,521
|
180,498
|
||||||
Net change in cash and cash equivalents
|
11,822
|
(4,949
|
)
|
|||||
Cash and cash equivalents at beginning of period
|
27,658
|
29,832
|
||||||
Cash and cash equivalents at end of period
|
$
|
39,480
|
$
|
24,883
|
||||
Supplemental disclosure of cash flow information
|
||||||||
Cash paid during the period for:
|
||||||||
Interest
|
$
|
1,516
|
$
|
1,292
|
||||
Income taxes
|
1,789
|
3,120
|
||||||
Franchise taxes
|
39
|
39
|
||||||
Other taxes
|
58
|
41
|
||||||
Supplemental schedule of non-cash investing activities:
|
||||||||
Sale of available-for-sale securities accrued
|
$
|
10,499
|
$
|
-
|
||||
Capital lease obligation
|
-
|
2,259
|
||||||
Securities transferred from available for sale to held to maturity
|
-
|
310
|
NOTE 2. | CREDIT DISCLOSURES |
March 31, 2016
|
September 30, 2015
|
|||||||
(Dollars in Thousands)
|
||||||||
1-4 Family Real Estate
|
$
|
140,000
|
$
|
125,021
|
||||
Commercial and Multi-Family Real Estate
|
354,794
|
310,199
|
||||||
Agricultural Real Estate
|
64,111
|
64,316
|
||||||
Consumer
|
35,937
|
33,527
|
||||||
Commercial Operating
|
26,909
|
29,893
|
||||||
Agricultural Operating
|
42,081
|
43,626
|
||||||
Premium Finance
|
121,572
|
106,505
|
||||||
Total Loans Receivable
|
785,404
|
713,087
|
||||||
Less:
|
||||||||
Allowance for Loan Losses
|
(7,431
|
)
|
(6,255
|
)
|
||||
Net Deferred Loan Origination Fees
|
(522
|
)
|
(577
|
)
|
||||
Total Loans Receivable, Net
|
$
|
777,451
|
$
|
706,255
|
1-4 Family
Real Estate
|
Commercial and
Multi-Family
Real Estate
|
Agricultural
Real Estate
|
Consumer
|
Commercial
Operating
|
Agricultural
Operating
|
Premium
Finance
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2016
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
285
|
$
|
1,194
|
$
|
171
|
$
|
20
|
$
|
107
|
$
|
3,856
|
$
|
424
|
$
|
609
|
$
|
6,666
|
||||||||||||||||||
Provision (recovery) for loan losses
|
42
|
790
|
(17
|
)
|
1,039
|
(62
|
)
|
(529
|
)
|
171
|
(261
|
)
|
1,173
|
|||||||||||||||||||||||
Charge offs
|
-
|
(290
|
)
|
-
|
-
|
-
|
-
|
(137
|
)
|
-
|
(427
|
)
|
||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
-
|
19
|
-
|
19
|
|||||||||||||||||||||||||||
Ending balance
|
$
|
327
|
$
|
1,694
|
$
|
154
|
$
|
1,059
|
$
|
45
|
$
|
3,327
|
$
|
477
|
$
|
348
|
$
|
7,431
|
||||||||||||||||||
Six Months Ended March 31, 2016
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
278
|
$
|
1,187
|
$
|
163
|
$
|
20
|
$
|
28
|
$
|
3,537
|
$
|
293
|
$
|
749
|
$
|
6,255
|
||||||||||||||||||
Provision (recovery) for loan losses
|
49
|
797
|
(9
|
)
|
1,039
|
17
|
(210
|
)
|
677
|
(401
|
)
|
1,959
|
||||||||||||||||||||||||
Charge offs
|
-
|
(290
|
)
|
-
|
-
|
-
|
-
|
(527
|
)
|
-
|
(817
|
)
|
||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
-
|
-
|
34
|
-
|
34
|
|||||||||||||||||||||||||||
Ending balance
|
$
|
327
|
$
|
1,694
|
$
|
154
|
$
|
1,059
|
$
|
45
|
$
|
3,327
|
$
|
477
|
$
|
348
|
$
|
7,431
|
||||||||||||||||||
Ending balance: individually evaluated for impairment
|
-
|
40
|
-
|
-
|
-
|
2,846
|
-
|
-
|
2,886
|
|||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
327
|
1,654
|
154
|
1,059
|
45
|
481
|
477
|
348
|
4,545
|
|||||||||||||||||||||||||||
Total
|
$
|
327
|
$
|
1,694
|
$
|
154
|
$
|
1,059
|
$
|
45
|
$
|
3,327
|
$
|
477
|
$
|
348
|
$
|
7,431
|
||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
114
|
1,091
|
-
|
-
|
6
|
3,421
|
-
|
-
|
4,632
|
|||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
139,886
|
353,703
|
64,111
|
35,937
|
26,903
|
38,660
|
121,572
|
-
|
780,772
|
|||||||||||||||||||||||||||
Total
|
$
|
140,000
|
$
|
354,794
|
$
|
64,111
|
$
|
35,937
|
$
|
26,909
|
$
|
42,081
|
$
|
121,572
|
$
|
-
|
$
|
785,404
|
1-4 Family
Real Estate
|
Commercial and
Multi-Family
Real Estate
|
Agricultural
Real Estate
|
Consumer
|
Commercial
Operating
|
Agricultural
Operating
|
Premium
Finance
|
Unallocated
|
Total
|
||||||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||||||
Three Months Ended March 31, 2015
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
512
|
$
|
1,198
|
$
|
266
|
$
|
78
|
$
|
85
|
$
|
630
|
$
|
35
|
$
|
2,421
|
$
|
5,225
|
||||||||||||||||||
Provision (recovery) for loan losses
|
55
|
20
|
(1
|
)
|
-
|
14
|
37
|
192
|
276
|
593
|
||||||||||||||||||||||||||
Charge offs
|
(45
|
)
|
-
|
-
|
-
|
-
|
-
|
(81
|
)
|
-
|
(126
|
)
|
||||||||||||||||||||||||
Recoveries
|
-
|
-
|
-
|
-
|
2
|
-
|
22
|
-
|
24
|
|||||||||||||||||||||||||||
Ending balance
|
$
|
522
|
$
|
1,218
|
$
|
265
|
$
|
78
|
$
|
101
|
$
|
667
|
$
|
168
|
$
|
2,697
|
$
|
5,716
|
||||||||||||||||||
Six Months Ended March 31, 2015
|
||||||||||||||||||||||||||||||||||||
Allowance for loan losses:
|
||||||||||||||||||||||||||||||||||||
Beginning balance
|
$
|
552
|
$
|
1,575
|
$
|
263
|
$
|
78
|
$
|
93
|
$
|
719
|
$
|
-
|
$
|
2,117
|
$
|
5,397
|
||||||||||||||||||
Provision (recovery) for loan losses
|
15
|
(149
|
)
|
2
|
-
|
5
|
(52
|
)
|
240
|
580
|
641
|
|||||||||||||||||||||||||
Charge offs
|
(45
|
)
|
(214
|
)
|
-
|
-
|
-
|
-
|
(98
|
)
|
-
|
(357
|
)
|
|||||||||||||||||||||||
Recoveries
|
-
|
6
|
-
|
-
|
3
|
-
|
26
|
-
|
35
|
|||||||||||||||||||||||||||
Ending balance
|
$
|
522
|
$
|
1,218
|
$
|
265
|
$
|
78
|
$
|
101
|
$
|
667
|
$
|
168
|
$
|
2,697
|
$
|
5,716
|
||||||||||||||||||
Ending balance: individually evaluated for impairment
|
-
|
296
|
-
|
1
|
-
|
326
|
-
|
-
|
623
|
|||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
522
|
922
|
265
|
77
|
101
|
341
|
168
|
2,697
|
5,093
|
|||||||||||||||||||||||||||
Total
|
$
|
522
|
$
|
1,218
|
$
|
265
|
$
|
78
|
$
|
101
|
$
|
667
|
$
|
168
|
$
|
2,697
|
$
|
5,716
|
||||||||||||||||||
Loans:
|
||||||||||||||||||||||||||||||||||||
Ending balance: individually evaluated for impairment
|
181
|
1,410
|
-
|
1
|
16
|
6,134
|
-
|
-
|
7,742
|
|||||||||||||||||||||||||||
Ending balance: collectively evaluated for impairment
|
115,560
|
259,127
|
65,720
|
30,534
|
27,250
|
35,615
|
83,191
|
-
|
616,997
|
|||||||||||||||||||||||||||
Total
|
$
|
115,741
|
$
|
260,537
|
$
|
65,720
|
$
|
30,535
|
$
|
27,266
|
$
|
41,749
|
$
|
83,191
|
$
|
-
|
$
|
624,739
|
March 31, 2016
|
1-4 Family
Real Estate
|
Commercial and
Multi-Family
Real Estate
|
Agricultural
Real Estate
|
Consumer
|
Commercial
Operating
|
Agricultural
Operating
|
Premium
Finance
|
Total
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
138,882
|
$
|
352,195
|
$
|
37,627
|
$
|
35,817
|
$
|
26,245
|
$
|
25,232
|
$
|
121,572
|
$
|
737,570
|
||||||||||||||||
Watch
|
1,087
|
1,992
|
-
|
-
|
573
|
441
|
-
|
4,093
|
||||||||||||||||||||||||
Special Mention
|
9
|
-
|
24,645
|
120
|
-
|
3,173
|
-
|
27,947
|
||||||||||||||||||||||||
Substandard
|
22
|
607
|
1,839
|
-
|
91
|
10,389
|
-
|
12,948
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
2,846
|
-
|
2,846
|
||||||||||||||||||||||||
$
|
140,000
|
$
|
354,794
|
$
|
64,111
|
$
|
35,937
|
$
|
26,909
|
$
|
42,081
|
$
|
121,572
|
$
|
785,404
|
September 30, 2015
|
1-4 Family
Real Estate
|
Commercial and
Multi-Family
Real Estate
|
Agricultural
Real Estate
|
Consumer
|
Commercial
Operating
|
Agricultural
Operating
|
Premium
Finance
|
Total
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Pass
|
$
|
124,775
|
$
|
307,876
|
$
|
35,106
|
$
|
33,527
|
$
|
29,052
|
$
|
29,336
|
$
|
106,505
|
$
|
666,177
|
||||||||||||||||
Watch
|
212
|
1,419
|
26,703
|
-
|
712
|
1,079
|
-
|
30,125
|
||||||||||||||||||||||||
Special Mention
|
10
|
-
|
877
|
-
|
-
|
4,014
|
-
|
4,901
|
||||||||||||||||||||||||
Substandard
|
24
|
904
|
1,630
|
-
|
129
|
9,197
|
-
|
11,884
|
||||||||||||||||||||||||
Doubtful
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
$
|
125,021
|
$
|
310,199
|
$
|
64,316
|
$
|
33,527
|
$
|
29,893
|
$
|
43,626
|
$
|
106,505
|
$
|
713,087
|
March 31, 2016
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater Than
90 Days
|
Total Past
Due
|
Current
|
Non-Accrual
Loans
|
Total Loans
Receivable
|
|||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
1-4 Family Real Estate
|
$
|
16
|
$
|
56
|
$
|
-
|
$
|
72
|
$
|
139,906
|
$
|
22
|
$
|
140,000
|
||||||||||||||
Commercial and Multi-Family Real Estate
|
3,718
|
-
|
-
|
3,718
|
350,469
|
607
|
354,794
|
|||||||||||||||||||||
Agricultural Real Estate
|
-
|
-
|
-
|
-
|
64,111
|
-
|
64,111
|
|||||||||||||||||||||
Consumer
|
347
|
17
|
5
|
369
|
35,568
|
-
|
35,937
|
|||||||||||||||||||||
Commercial Operating
|
1,482
|
-
|
-
|
1,482
|
25,427
|
-
|
26,909
|
|||||||||||||||||||||
Agricultural Operating
|
-
|
-
|
-
|
-
|
38,660
|
3,421
|
42,081
|
|||||||||||||||||||||
Premium Finance
|
1,361
|
438
|
611
|
2,410
|
119,162
|
-
|
121,572
|
|||||||||||||||||||||
Total
|
$
|
6,924
|
$
|
511
|
$
|
616
|
$
|
8,051
|
$
|
773,303
|
$
|
4,050
|
$
|
785,404
|
September 30, 2015
|
30-59 Days
Past Due
|
60-89 Days
Past Due
|
Greater Than
90 Days
|
Total Past
Due
|
Current
|
Non-Accrual
Loans
|
Total Loans
Receivable
|
|||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||
1-4 Family Real Estate
|
$
|
142
|
$
|
-
|
$
|
-
|
$
|
142
|
$
|
124,855
|
$
|
24
|
$
|
125,021
|
||||||||||||||
Commercial and Multi-Family Real Estate
|
-
|
-
|
-
|
-
|
309,295
|
904
|
310,199
|
|||||||||||||||||||||
Agricultural Real Estate
|
-
|
-
|
-
|
-
|
64,316
|
-
|
64,316
|
|||||||||||||||||||||
Consumer
|
152
|
-
|
13
|
165
|
33,362
|
-
|
33,527
|
|||||||||||||||||||||
Commercial Operating
|
-
|
-
|
-
|
-
|
29,893
|
-
|
29,893
|
|||||||||||||||||||||
Agricultural Operating
|
-
|
-
|
-
|
-
|
38,494
|
5,132
|
43,626
|
|||||||||||||||||||||
Premium Finance
|
702
|
362
|
1,728
|
2,792
|
103,713
|
-
|
106,505
|
|||||||||||||||||||||
Total
|
$
|
996
|
$
|
362
|
$
|
1,741
|
$
|
3,099
|
$
|
703,928
|
$
|
6,060
|
$
|
713,087
|
Recorded
Balance
|
Unpaid Principal
Balance
|
Specific
Allowance
|
||||||||||
March 31, 2016
|
(Dollars in Thousands)
|
|||||||||||
Loans without a specific valuation allowance
|
||||||||||||
1-4 Family Real Estate
|
$
|
114
|
$
|
114
|
$
|
-
|
||||||
Commercial and Multi-Family Real Estate
|
439
|
439
|
-
|
|||||||||
Commercial Operating
|
6
|
6
|
-
|
|||||||||
Total
|
$
|
559
|
$
|
559
|
$
|
-
|
||||||
Loans with a specific valuation allowance
|
||||||||||||
Commercial and Multi-Family Real Estate
|
$
|
652
|
$
|
942
|
$
|
40
|
||||||
Agricultural Operating
|
3,421
|
3,571
|
2,846
|
|||||||||
Total
|
$
|
4,073
|
$
|
4,513
|
$
|
2,886
|
Recorded
Balance
|
Unpaid Principal
Balance
|
Specific
Allowance
|
||||||||||
September 30, 2015
|
(Dollars in Thousands)
|
|||||||||||
Loans without a specific valuation allowance
|
||||||||||||
1-4 Family Real Estate
|
$
|
121
|
$
|
121
|
$
|
-
|
||||||
Commercial and Multi-Family Real Estate
|
446
|
446
|
-
|
|||||||||
Commercial Operating
|
11
|
11
|
-
|
|||||||||
Total
|
$
|
578
|
$
|
578
|
$
|
-
|
||||||
Loans with a specific valuation allowance
|
||||||||||||
Commercial and Multi-Family Real Estate
|
$
|
904
|
$
|
904
|
$
|
241
|
||||||
Agricultural Operating
|
5,132
|
5,282
|
3,252
|
|||||||||
Total
|
$
|
6,036
|
$
|
6,186
|
$
|
3,493
|
Three Months Ended March 31,
|
Six Months Ended March 31,
|
|||||||||||||||
2016
|
2015
|
2016
|
2015
|
|||||||||||||
Average
Recorded
Investment
|
Average
Recorded
Investment
|
Average
Recorded
Investment
|
Average
Recorded
Investment
|
|||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
1-4 Family Real Estate
|
$
|
116
|
$
|
292
|
$
|
118
|
$
|
333
|
||||||||
Commercial and Multi-Family Real Estate
|
1,257
|
1,421
|
1,302
|
2,834
|
||||||||||||
Agricultural Real Estate
|
-
|
-
|
-
|
-
|
||||||||||||
Consumer
|
-
|
-
|
-
|
-
|
||||||||||||
Commercial Operating
|
7
|
19
|
8
|
20
|
||||||||||||
Agricultural Operating
|
4,362
|
2,242
|
4,697
|
1,284
|
||||||||||||
Premium Finance
|
-
|
-
|
-
|
-
|
||||||||||||
Total
|
$
|
5,742
|
$
|
3,974
|
$
|
6,125
|
$
|
4,471
|
NOTE 3.
|
ALLOWANCE FOR LOAN LOSSES
|
NOTE 4. | EARNINGS PER COMMON SHARE (“EPS”) |
Three Months Ended March 31,
|
2016
|
2015
|
||||||
(Dollars in Thousands, Except Share and Per Share Data)
|
||||||||
Earnings
|
||||||||
Net Income
|
$
|
14,283
|
$
|
5,181
|
||||
Basic EPS
|
||||||||
Weighted average common shares outstanding
|
8,496,357
|
6,546,071
|
||||||
Less weighted average nonvested shares
|
(29,533
|
)
|
(4,717
|
)
|
||||
Weighted average common shares outstanding
|
8,466,825
|
6,541,354
|
||||||
Earnings Per Common Share
|
||||||||
Basic
|
$
|
1.69
|
$
|
0.79
|
||||
Diluted EPS
|
||||||||
Weighted average common shares outstanding for basic earnings per common share
|
8,466,825
|
6,541,354
|
||||||
Add dilutive effect of assumed exercises of stock options, net of tax benefits
|
58,248
|
60,060
|
||||||
Weighted average common and dilutive potential common shares outstanding
|
8,525,072
|
6,601,414
|
||||||
Earnings Per Common Share
|
||||||||
Diluted
|
$
|
1.68
|
$
|
0.78
|
Six Months Ended March 31,
|
2016
|
2015
|
||||||
(Dollars in Thousands, Except Share and Per Share Data)
|
||||||||
Earnings
|
||||||||
Net Income
|
$
|
18,341
|
$
|
8,776
|
||||
Basic EPS
|
||||||||
Weighted average common shares outstanding
|
8,369,523
|
6,362,921
|
||||||
Less weighted average nonvested shares
|
(28,410
|
)
|
(4,327
|
)
|
||||
Weighted average common shares outstanding
|
8,341,112
|
6,358,594
|
||||||
Earnings Per Common Share
|
||||||||
Basic
|
$
|
2.20
|
$
|
1.38
|
||||
Diluted EPS
|
||||||||
Weighted average common shares outstanding for basic earnings per common share
|
8,341,112
|
6,358,594
|
||||||
Add dilutive effect of assumed exercises of stock options, net of tax benefits
|
62,598
|
60,617
|
||||||
Weighted average common and dilutive potential common shares outstanding
|
8,403,711
|
6,419,211
|
||||||
Earnings Per Common Share
|
||||||||
Diluted
|
$
|
2.18
|
$
|
1.37
|
NOTE 5.
|
SECURITIES
|
Available For Sale
|
GROSS
|
GROSS
|
||||||||||||||
At March 31, 2016
|
AMORTIZED
COST
|
UNREALIZED
GAINS
|
UNREALIZED
(LOSSES)
|
FAIR
VALUE
|
||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Debt securities
|
||||||||||||||||
Trust preferred securities
|
$
|
14,933
|
$
|
-
|
$
|
(2,985
|
)
|
$
|
11,948
|
|||||||
Small business administration securities
|
81,823
|
1,874
|
-
|
83,697
|
||||||||||||
Non-bank qualified obligations of states and political subdivisions
|
680,360
|
23,273
|
(398
|
)
|
703,235
|
|||||||||||
Asset-backed securities
|
66,787
|
13
|
(634
|
)
|
66,166
|
|||||||||||
Mortgage-backed securities
|
690,049
|
1,759
|
(2,856
|
)
|
688,952
|
|||||||||||
Total debt securities
|
1,533,952
|
26,919
|
(6,873
|
)
|
1,553,998
|
|||||||||||
Common equities and mutual funds
|
760
|
352
|
(6
|
)
|
1,106
|
|||||||||||
Total available for sale securities
|
$
|
1,534,712
|
$
|
27,271
|
$
|
(6,879
|
)
|
$
|
1,555,104
|
At September 30, 2015
|
AMORTIZED
COST
|
GROSS
UNREALIZED
GAINS
|
GROSS
UNREALIZED
(LOSSES)
|
FAIR
VALUE
|
||||||||||||
(Dollars in Thousands)
|
||||||||||||||||
Debt securities
|
||||||||||||||||
Trust preferred and corporate securities
|
$
|
16,199
|
$
|
8
|
$
|
(2,263
|
)
|
$
|
13,944
|
|||||||
Small business administration securities
|
54,493
|
1,563
|
-
|
56,056
|
||||||||||||
Non-bank qualified obligations of states and political subdivisions
|
603,165
|
7,240
|
(1,815
|
)
|
608,590
|
|||||||||||
Mortgage-backed securities
|
580,165
|
1,283
|
(4,865
|
)
|
576,583
|
|||||||||||
Total debt securities
|
1,254,022
|
10,094
|
(8,943
|
)
|
1,255,173
|
|||||||||||
Common equities and mutual funds
|
639
|
283
|
(8
|
)
|
914
|
|||||||||||
Total available for sale securities
|
$
|
1,254,661
|
$
|
10,377
|
$
|
(8,951
|
)
|
$
|
1,256,087
|
Held to Maturity
|
GROSS
|
GROSS
|
||||||||||||||
At March 31, 2016
|
AMORTIZED
COST
|
UNREALIZED
GAINS
|
UNREALIZED
(LOSSES)
|
FAIR
VALUE
|
||||||||||||
|
(Dollars in Thousands)
|
|||||||||||||||
Debt securities
|
||||||||||||||||
Obligations of states and political subdivisions
|
$
|
20,791
|
$
|
238
|
$
|
(46
|
)
|
$
|
20,983
|
|||||||
Non-bank qualified obligations of states and political subdivisions
|
396,480
|
7,540
|
(61
|
)
|
403,959
|
|||||||||||
Mortgage-backed securities
|
68,497
|
30
|
(119
|
)
|
68,408
|
|||||||||||
Total held to maturity securities
|
$
|
485,768
|
$
|
7,808
|
$
|
(226
|
)
|
$
|
493,350
|
At September 30, 2015
|
AMORTIZED
COST
|
GROSS
UNREALIZED
GAINS
|
GROSS
UNREALIZED
(LOSSES)
|
FAIR
VALUE
|
||||||||||||
|
(Dollars in Thousands)
|
|||||||||||||||
Debt securities
|
||||||||||||||||
Obligations of states and political subdivisions
|
$
|
19,540
|
$
|
60
|
$
|
(187
|
)
|
$
|
19,413
|
|||||||
Non-bank qualified obligations of states and political subdivisions
|
259,627
|
2,122
|
(419
|
)
|
261,330
|
|||||||||||
Mortgage-backed securities
|
66,577
|
-
|
(473
|
)
|
66,104
|
|||||||||||
Total held to maturity securities
|
$
|
345,744
|
$
|
2,182
|
$
|
(1,079
|
)
|
$
|
346,847
|
At March 31, 2016
|
|
|
|||||||||||||
Issuer(1)
|
Amortized Cost
|
Fair Value
|
Unrealized
Gain (Loss)
|
S&P
Credit Rating
|
Moody's
Credit Rating
|
||||||||||
(Dollars in Thousands)
|
|
|
|||||||||||||
|
|
||||||||||||||
Key Corp. Capital I
|
$
|
4,987
|
$
|
4,006
|
$
|
(981
|
)
|
BB+
|
Baa2
|
||||||
Huntington Capital Trust II SE
|
4,980
|
3,878
|
(1,102
|
)
|
BB
|
Baa2
|
|||||||||
PNC Capital Trust
|
4,966
|
4,064
|
(902
|
)
|
BBB-
|
Baa1
|
|||||||||
Total
|
$
|
14,933
|
$
|
11,948
|
$
|
(2,985
|
)
|
|
|
(1)
|
Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination.
|
At September 30, 2015
|
|
|
|||||||||||||
Issuer(1)
|
Amortized Cost
|
Fair Value
|
Unrealized
Gain (Loss)
|
S&P
Credit Rating
|
Moody's
Credit Rating
|
||||||||||
(Dollars in Thousands)
|
|
|
|||||||||||||
|
|
||||||||||||||
Key Corp. Capital I
|
$
|
4,986
|
$
|
4,189
|
$
|
(797
|
)
|
BB+
|
Baa2
|
||||||
Huntington Capital Trust II SE
|
4,979
|
4,076
|
(903
|
)
|
BB
|
Baa2
|
|||||||||
PNC Capital Trust
|
4,965
|
4,402
|
(563
|
)
|
BBB-
|
Baa1
|
|||||||||
Total
|
$
|
14,930
|
$
|
12,667
|
$
|
(2,263
|
)
|
|
|
(1)
|
Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination
|
Available For Sale
|
LESS THAN 12 MONTHS
|
OVER 12 MONTHS
|
TOTAL
|
|||||||||||||||||||||
At March 31, 2016
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||
Trust preferred securities
|
$
|
-
|
$
|
-
|
$
|
11,948
|
$
|
(2,985
|
)
|
$
|
11,948
|
$
|
(2,985
|
)
|
||||||||||
Non-bank qualified obligations of states and political subdivisions
|
22,208
|
(52
|
)
|
15,479
|
(346
|
)
|
37,687
|
(398
|
)
|
|||||||||||||||
Asset-backed securities
|
50,116
|
(634
|
)
|
-
|
-
|
50,116
|
(634
|
)
|
||||||||||||||||
Mortgage-backed securities
|
303,869
|
(1,821
|
)
|
144,547
|
(1,035
|
)
|
448,416
|
(2,856
|
)
|
|||||||||||||||
Total debt securities
|
376,193
|
(2,507
|
)
|
171,974
|
(4,366
|
)
|
548,167
|
(6,873
|
)
|
|||||||||||||||
Common equities and mutual funds
|
-
|
-
|
122
|
(6
|
)
|
122
|
(6
|
)
|
||||||||||||||||
Total available for sale securities
|
$
|
376,193
|
$
|
(2,507
|
)
|
$
|
172,096
|
$
|
(4,372
|
)
|
$
|
548,289
|
$
|
(6,879
|
)
|
LESS THAN 12 MONTHS
|
OVER 12 MONTHS
|
TOTAL
|
||||||||||||||||||||||
At September 30, 2015
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||
Trust preferred and corporate securities
|
$
|
-
|
$
|
-
|
$
|
12,667
|
$
|
(2,263
|
)
|
$
|
12,667
|
$
|
(2,263
|
)
|
||||||||||
Non-bank qualified obligations of states and political subdivisions
|
97,006
|
(860
|
)
|
42,583
|
(955
|
)
|
139,589
|
(1,815
|
)
|
|||||||||||||||
Mortgage-backed securities
|
448,988
|
(4,301
|
)
|
48,079
|
(564
|
)
|
497,067
|
(4,865
|
)
|
|||||||||||||||
Total debt securities
|
545,994
|
(5,161
|
)
|
103,329
|
(3,782
|
)
|
649,323
|
(8,943
|
)
|
|||||||||||||||
Common equities and mutual funds
|
-
|
-
|
121
|
(8
|
)
|
121
|
(8
|
)
|
||||||||||||||||
Total available for sale securities
|
$
|
545,994
|
$
|
(5,161
|
)
|
$
|
103,450
|
$
|
(3,790
|
)
|
$
|
649,444
|
$
|
(8,951
|
)
|
Held To Maturity
|
LESS THAN 12 MONTHS
|
OVER 12 MONTHS
|
TOTAL
|
|||||||||||||||||||||
At March 31, 2016
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
||||||||||||||||||
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$
|
4,905
|
$
|
(16
|
)
|
$
|
2,486
|
$
|
(30
|
)
|
$
|
7,391
|
$
|
(46
|
)
|
|||||||||
Non-bank qualified obligations of states and political subdivisions
|
25,003
|
(56
|
)
|
422
|
(5
|
)
|
25,425
|
(61
|
)
|
|||||||||||||||
Mortgage-backed securities
|
2,945
|
(10
|
)
|
56,954
|
(109
|
)
|
59,899
|
(119
|
)
|
|||||||||||||||
Total held to maturity securities
|
$
|
32,853
|
$
|
(82
|
)
|
$
|
59,862
|
$
|
(144
|
)
|
$
|
92,715
|
$
|
(226
|
)
|
|
LESS THAN 12 MONTHS
|
OVER 12 MONTHS
|
TOTAL
|
|||||||||||||||||||||
At September 30, 2015
|
Fair
Value
|
Unrealized
(Losses)
|
Fair
Value
|
Unrealized
(Losses)
|
Fair Value
|
Unrealized
(Losses)
|
||||||||||||||||||
|
(Dollars in Thousands)
|
|||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
$
|
5,528
|
$
|
(34
|
)
|
$
|
7,964
|
$
|
(153
|
)
|
$
|
13,492
|
$
|
(187
|
)
|
|||||||||
Non-bank qualified obligations of states and political subdivisions
|
78,663
|
(365
|
)
|
4,136
|
(54
|
)
|
82,799
|
(419
|
)
|
|||||||||||||||
Mortgage-backed securities
|
5,509
|
(43
|
)
|
60,595
|
(430
|
)
|
66,104
|
(473
|
)
|
|||||||||||||||
Total held to maturity securities
|
$
|
89,700
|
$
|
(442
|
)
|
$
|
72,695
|
$
|
(637
|
)
|
$
|
162,395
|
$
|
(1,079
|
)
|
Available For Sale
|
AMORTIZED
COST
|
FAIR
VALUE
|
||||||
|
||||||||
At March 31, 2016
|
(Dollars in Thousands)
|
|||||||
|
||||||||
Due in one year or less
|
$
|
-
|
$
|
-
|
||||
Due after one year through five years
|
7,337
|
7,533
|
||||||
Due after five years through ten years
|
416,311
|
431,338
|
||||||
Due after ten years
|
420,255
|
426,175
|
||||||
|
843,903
|
865,046
|
||||||
Mortgage-backed securities
|
690,049
|
688,952
|
||||||
Common equities and mutual funds
|
760
|
1,106
|
||||||
Total available for sale securities
|
$
|
1,534,712
|
$
|
1,555,104
|
|
AMORTIZED
COST
|
FAIR
VALUE
|
||||||
At September 30, 2015
|
(Dollars in Thousands)
|
|||||||
|
||||||||
Due in one year or less
|
$
|
-
|
$
|
-
|
||||
Due after one year through five years
|
1,174
|
1,207
|
||||||
Due after five years through ten years
|
370,087
|
376,394
|
||||||
Due after ten years
|
302,596
|
300,989
|
||||||
|
673,857
|
678,590
|
||||||
Mortgage-backed securities
|
580,165
|
576,583
|
||||||
Common equities and mutual funds
|
639
|
914
|
||||||
Total available for sale securities
|
$
|
1,254,661
|
$
|
1,256,087
|
Held To Maturity
|
AMORTIZED
COST
|
FAIR
VALUE
|
||||||
|
||||||||
At March 31, 2016
|
(Dollars in Thousands)
|
|||||||
|
||||||||
Due in one year or less
|
$
|
225
|
$
|
225
|
||||
Due after one year through five years
|
11,721
|
11,885
|
||||||
Due after five years through ten years
|
143,869
|
147,574
|
||||||
Due after ten years
|
261,456
|
265,258
|
||||||
|
417,271
|
424,942
|
||||||
Mortgage-backed securities
|
68,497
|
68,408
|
||||||
Total held to maturity securities
|
$
|
485,768
|
$
|
493,350
|
|
AMORTIZED
COST
|
FAIR
VALUE
|
||||||
At September 30, 2015
|
(Dollars in Thousands)
|
|||||||
|
||||||||
Due in one year or less
|
$
|
95
|
$
|
96
|
||||
Due after one year through five years
|
8,411
|
8,430
|
||||||
Due after five years through ten years
|
140,145
|
140,505
|
||||||
Due after ten years
|
130,516
|
131,712
|
||||||
|
279,167
|
280,743
|
||||||
Mortgage-backed securities
|
66,577
|
66,104
|
||||||
Total held to maturity securities
|
$
|
345,744
|
$
|
346,847
|
NOTE 6. | COMMITMENTS AND CONTINGENCIES |
NOTE 7. | STOCK OPTION PLAN |
|
Number
of
Shares
|
Weighted
Average
Exercise
Price
|
Weighted
Average
Remaining
Contractual
Term (Yrs)
|
Aggregate
Intrinsic
Value
|
||||||||||||
(Dollars in Thousands, Except Share and Per Share Data)
|
||||||||||||||||
Options outstanding, September 30, 2015
|
189,088
|
$
|
25.74
|
3.16
|
$
|
3,027
|
||||||||||
Granted
|
-
|
-
|
-
|
|||||||||||||
Exercised
|
(12,283
|
)
|
26.21
|
211
|
||||||||||||
Forfeited or expired
|
-
|
-
|
-
|
|||||||||||||
Options outstanding, March 31, 2016
|
176,805
|
$
|
25.71
|
2.60
|
$
|
3,505
|
||||||||||
Options exercisable, March 31, 2016
|
176,805
|
$
|
25.71
|
2.60
|
$
|
3,505
|
|
Number
of
Shares
|
Weighted
Average
Fair Value
at Grant
|
||||||
(Dollars in Thousands, Except Share and Per Share Data)
|
||||||||
Nonvested shares outstanding, September 30, 2015
|
44,002
|
$
|
40.80
|
|||||
Granted
|
6,710
|
29.69
|
||||||
Vested
|
(19,518
|
)
|
40.77
|
|||||
Forfeited or expired
|
(727
|
)
|
41.77
|
|||||
Nonvested shares outstanding, March 31, 2016
|
30,467
|
$
|
38.36
|
NOTE 8. | SEGMENT INFORMATION |
|
Payments
|
Banking
|
Corporate
Services/Other
|
Total
|
||||||||||||
Three Months Ended March 31, 2016
|
||||||||||||||||
Interest income
|
$
|
2,633
|
$
|
8,949
|
$
|
9,047
|
$
|
20,629
|
||||||||
Interest expense
|
54
|
316
|
321
|
691
|
||||||||||||
Net interest income (expense)
|
2,579
|
8,633
|
8,726
|
19,938
|
||||||||||||
Provision (recovery) for loan losses
|
953
|
220
|
-
|
1,173
|
||||||||||||
Non-interest income
|
39,591
|
899
|
411
|
40,901
|
||||||||||||
Non-interest expense
|
25,720
|
5,218
|
10,852
|
41,790
|
||||||||||||
Income (loss) before income tax expense (benefit)
|
15,497
|
4,094
|
(1,715
|
)
|
17,876
|
|||||||||||
Total assets
|
53,020
|
781,380
|
2,237,342
|
3,071,742
|
||||||||||||
Total deposits
|
2,014,548
|
206,213
|
-
|
2,220,761
|
Payments
|
Banking
|
Corporate
Services/Other
|
Total
|
|||||||||||||
Six Months Ended March 31, 2016
|
||||||||||||||||
Interest income
|
$
|
4,597
|
$
|
17,800
|
$
|
16,507
|
$
|
38,904
|
||||||||
Interest expense
|
94
|
569
|
748
|
1,411
|
||||||||||||
Net interest income (expense)
|
4,503
|
17,231
|
15,759
|
37,493
|
||||||||||||
Provision (recovery) for loan losses
|
1,033
|
926
|
-
|
1,959
|
||||||||||||
Non-interest income
|
54,943
|
1,955
|
837
|
57,735
|
||||||||||||
Non-interest expense
|
41,737
|
10,646
|
19,415
|
71,798
|
||||||||||||
Income (loss) before tax
|
16,676
|
7,614
|
(2,819
|
)
|
21,471
|
|||||||||||
Total assets
|
53,020
|
781,380
|
2,237,342
|
3,071,742
|
||||||||||||
Total deposits
|
2,014,548
|
206,213
|
-
|
2,220,761
|
Payments
|
Banking
|
Corporate
Services/Other
|
Total
|
|||||||||||||
Three Months Ended March 31, 2015
|
||||||||||||||||
Interest income
|
$
|
2,079
|
$
|
8,009
|
$
|
5,671
|
$
|
15,759
|
||||||||
Interest expense
|
46
|
384
|
43
|
473
|
||||||||||||
Net interest income (expense)
|
2,033
|
7,625
|
5,628
|
15,286
|
||||||||||||
Provision (recovery) for loan losses
|
-
|
593
|
-
|
593
|
||||||||||||
Non-interest income
|
13,608
|
1,048
|
314
|
14,970
|
||||||||||||
Non-interest expense
|
11,488
|
4,917
|
7,015
|
23,420
|
||||||||||||
Income (loss) before income tax expense (benefit)
|
4,153
|
3,163
|
(1,073
|
)
|
6,243
|
|||||||||||
Total assets
|
39,498
|
636,749
|
1,598,845
|
2,275,092
|
||||||||||||
Total deposits
|
1,533,716
|
196,920
|
36
|
1,730,672
|
Payments
|
Banking
|
Corporate
Services/Other
|
Total
|
|||||||||||||
Six Months Ended March 31, 2015
|
||||||||||||||||
Interest income
|
$
|
3,646
|
$
|
14,950
|
$
|
11,395
|
$
|
29,991
|
||||||||
Interest expense
|
91
|
663
|
380
|
1,134
|
||||||||||||
Net interest income (expense)
|
3,555
|
14,287
|
11,015
|
28,857
|
||||||||||||
Provision (recovery) for loan losses
|
-
|
641
|
-
|
641
|
||||||||||||
Non-interest income
|
26,660
|
1,627
|
(643
|
)
|
27,644
|
|||||||||||
Non-interest expense
|
23,161
|
8,610
|
14,062
|
45,833
|
||||||||||||
Income (loss) before income tax expense (benefit)
|
7,054
|
6,663
|
(3,690
|
)
|
10,027
|
|||||||||||
Total assets
|
39,498
|
636,749
|
1,598,845
|
2,275,092
|
||||||||||||
Total deposits
|
1,533,716
|
196,920
|
36
|
1,730,672
|
NOTE 9. | NEW ACCOUNTING PRONOUNCEMENTS |
Fair Value At March 31, 2016
|
||||||||||||||||||||||||||||||||
Available For Sale
|
Held to Maturity
|
|||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||||||||||
Trust preferred securities
|
$
|
11,948
|
$
|
-
|
$
|
11,948
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
Small business administration securities
|
83,697
|
-
|
83,697
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
-
|
-
|
-
|
-
|
20,983
|
-
|
20,983
|
-
|
||||||||||||||||||||||||
Non-bank qualified obligations of states and political subdivisions
|
703,235
|
-
|
703,235
|
-
|
403,959
|
-
|
403,959
|
-
|
||||||||||||||||||||||||
Asset-backed securities
|
66,166
|
-
|
66,166
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Mortgage-backed securities
|
688,952
|
-
|
688,952
|
-
|
68,408
|
-
|
68,408
|
-
|
||||||||||||||||||||||||
Total debt securities
|
1,553,998
|
-
|
1,553,998
|
-
|
493,350
|
-
|
493,350
|
-
|
||||||||||||||||||||||||
Common equities and mutual funds
|
1,106
|
1,106
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total securities
|
$
|
1,555,104
|
$
|
1,106
|
$
|
1,553,998
|
$
|
-
|
$
|
493,350
|
$
|
-
|
$
|
493,350
|
$
|
-
|
Fair Value At September 30, 2015
|
||||||||||||||||||||||||||||||||
Available For Sale
|
Held to Maturity
|
|||||||||||||||||||||||||||||||
(Dollars in Thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||||||||||
Debt securities
|
||||||||||||||||||||||||||||||||
Trust preferred and corporate securities
|
$
|
13,944
|
$
|
-
|
$
|
13,944
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||||||
Small business administration securities
|
56,056
|
-
|
56,056
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Obligations of states and political subdivisions
|
-
|
-
|
-
|
-
|
19,413
|
-
|
19,413
|
-
|
||||||||||||||||||||||||
Non-bank qualified obligations of states and political subdivisions
|
608,590
|
-
|
608,590
|
-
|
261,330
|
-
|
261,330
|
-
|
||||||||||||||||||||||||
Mortgage-backed securities
|
576,583
|
-
|
576,583
|
-
|
66,104
|
-
|
66,104
|
-
|
||||||||||||||||||||||||
Total debt securities
|
1,255,173
|
-
|
1,255,173
|
-
|
346,847
|
-
|
346,847
|
-
|
||||||||||||||||||||||||
Common equities and mutual funds
|
914
|
914
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||||||||
Total securities
|
$
|
1,256,087
|
$
|
914
|
$
|
1,255,173
|
$
|
-
|
$
|
346,847
|
$
|
-
|
$
|
346,847
|
$
|
-
|
Fair Value at March 31, 2016
|
||||||||||||||||
(Dollars in Thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Impaired Loans, net
|
||||||||||||||||
Commercial and multi-family real estate loans
|
$
|
612
|
$
|
-
|
$
|
-
|
$
|
612
|
||||||||
Agricultural operating loans
|
575
|
-
|
-
|
575
|
||||||||||||
Total
|
$
|
1,187
|
$
|
-
|
$
|
-
|
$
|
1,187
|
Fair Value at September 30, 2015
|
||||||||||||||||
(Dollars in Thousands)
|
Total
|
Level 1
|
Level 2
|
Level 3
|
||||||||||||
Impaired Loans, net
|
||||||||||||||||
Commercial and multi-family real estate loans
|
$
|
663
|
$
|
-
|
$
|
-
|
$
|
663
|
||||||||
Agricultural operating loans
|
1,880
|
-
|
-
|
1,880
|
||||||||||||
Total
|
$
|
2,543
|
$
|
-
|
$
|
-
|
$
|
2,543
|
Quantitative Information About Level 3 Fair Value Measurements
|
||||||
(Dollars in Thousands)
|
Fair Value at
March 31, 2016
|
Valuation
Technique
|
Unobservable Input
|
|||
Impaired Loans, net
|
$
|
1,187
|
Market approach
|
Appraised values (1)
|
(1) | The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. |
Quantitative Information About Level 3 Fair Value Measurements
|
||||||
(Dollars in Thousands)
|
Fair Value at
September 30, 2015
|
Valuation
Technique
|
Unobservable Input
|
|||
Impaired Loans, net
|
$
|
2,543
|
Market approach
|
Appraised values (1)
|
(1) | The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. |
March 31, 2016
|
||||||||||||||||||||
Carrying
Amount |
Estimated
Fair Value |
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
39,480
|
$
|
39,480
|
$
|
39,480
|
$
|
-
|
$
|
-
|
||||||||||
Securities available for sale
|
1,555,104
|
1,555,104
|
1,106
|
1,553,998
|
-
|
|||||||||||||||
Securities held to maturity
|
485,768
|
493,350
|
-
|
493,350
|
-
|
|||||||||||||||
Total securities
|
2,040,871
|
2,048,454
|
1,106
|
2,047,348
|
-
|
|||||||||||||||
Loans receivable:
|
||||||||||||||||||||
One to four family residential mortgage loans
|
140,000
|
141,183
|
-
|
-
|
141,183
|
|||||||||||||||
Commercial and multi-family real estate loans
|
354,794
|
353,769
|
-
|
-
|
353,769
|
|||||||||||||||
Agricultural real estate loans
|
64,111
|
63,960
|
-
|
-
|
63,960
|
|||||||||||||||
Consumer loans
|
35,937
|
35,341
|
-
|
-
|
35,341
|
|||||||||||||||
Commercial operating loans
|
26,909
|
27,085
|
-
|
-
|
27,085
|
|||||||||||||||
Agricultural operating loans
|
42,081
|
38,364
|
-
|
-
|
38,364
|
|||||||||||||||
Premium finance loans
|
121,572
|
124,075
|
-
|
-
|
124,075
|
|||||||||||||||
Total loans receivable
|
785,404
|
783,778
|
-
|
-
|
783,778
|
|||||||||||||||
Federal Home Loan Bank stock
|
22,431
|
22,431
|
-
|
22,431
|
-
|
|||||||||||||||
Accrued interest receivable
|
15,783
|
15,783
|
15,783
|
-
|
-
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Noninterest bearing demand deposits
|
2,013,783
|
2,013,783
|
2,013,783
|
-
|
-
|
|||||||||||||||
Interest bearing demand deposits, savings, and money markets
|
155,177
|
155,177
|
155,177
|
-
|
-
|
|||||||||||||||
Certificates of deposit
|
51,801
|
51,585
|
-
|
51,585
|
-
|
|||||||||||||||
Total deposits
|
2,220,761
|
2,220,544
|
2,168,959
|
51,585
|
-
|
|||||||||||||||
Advances from Federal Home Loan Bank
|
7,000
|
8,335
|
-
|
8,335
|
-
|
|||||||||||||||
Federal funds purchased
|
465,000
|
465,000
|
465,000
|
|||||||||||||||||
Securities sold under agreements to repurchase
|
1,626
|
1,626
|
-
|
1,626
|
-
|
|||||||||||||||
Subordinated debentures
|
10,310
|
10,430
|
-
|
10,430
|
-
|
|||||||||||||||
Accrued interest payable
|
167
|
167
|
167
|
-
|
-
|
September 30, 2015
|
||||||||||||||||||||
Carrying
Amount |
Estimated
Fair Value |
Level 1
|
Level 2
|
Level 3
|
||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||
Financial assets
|
||||||||||||||||||||
Cash and cash equivalents
|
$
|
27,658
|
$
|
27,658
|
$
|
27,658
|
$
|
-
|
$
|
-
|
||||||||||
Securities available for sale
|
1,256,087
|
1,256,087
|
914
|
1,255,173
|
-
|
|||||||||||||||
Securities held to maturity
|
345,744
|
346,847
|
-
|
346,847
|
-
|
|||||||||||||||
Total securities
|
1,601,831
|
1,602,934
|
914
|
1,602,020
|
-
|
|||||||||||||||
Loans receivable:
|
||||||||||||||||||||
One to four family residential mortgage loans
|
125,021
|
121,385
|
-
|
-
|
121,385
|
|||||||||||||||
Commercial and multi-family real estate loans
|
310,199
|
314,372
|
-
|
-
|
314,372
|
|||||||||||||||
Agricultural real estate loans
|
64,316
|
66,682
|
-
|
-
|
66,682
|
|||||||||||||||
Consumer loans
|
33,527
|
33,504
|
-
|
-
|
33,504
|
|||||||||||||||
Commercial operating loans
|
29,893
|
23,245
|
-
|
-
|
23,245
|
|||||||||||||||
Agricultural operating loans
|
43,626
|
40,003
|
-
|
-
|
40,003
|
|||||||||||||||
Premium finance loans
|
106,505
|
108,583
|
-
|
-
|
108,583
|
|||||||||||||||
Total loans receivable
|
713,087
|
707,774
|
-
|
-
|
707,774
|
|||||||||||||||
Federal Home Loan Bank stock
|
24,410
|
24,410
|
-
|
24,410
|
-
|
|||||||||||||||
Accrued interest receivable
|
13,352
|
13,352
|
13,352
|
-
|
-
|
|||||||||||||||
Financial liabilities
|
||||||||||||||||||||
Noninterest bearing demand deposits
|
1,449,101
|
1,369,672
|
1,369,672
|
-
|
-
|
|||||||||||||||
Interest bearing demand deposits, savings, and money markets
|
117,262
|
115,204
|
115,204
|
-
|
-
|
|||||||||||||||
Certificates of deposit
|
91,171
|
91,304
|
-
|
91,304
|
-
|
|||||||||||||||
Total deposits
|
1,657,534
|
1,576,180
|
1,484,876
|
91,304
|
-
|
|||||||||||||||
Advances from Federal Home Loan Bank
|
7,000
|
8,630
|
-
|
8,630
|
-
|
|||||||||||||||
Federal funds purchased
|
540,000
|
540,000
|
-
|
540,000
|
-
|
|||||||||||||||
Securities sold under agreements to repurchase
|
4,007
|
4,007
|
-
|
4,007
|
-
|
|||||||||||||||
Subordinated debentures
|
10,310
|
10,416
|
-
|
10,416
|
-
|
|||||||||||||||
Accrued interest payable
|
272
|
272
|
272
|
-
|
-
|
NOTE 11.
|
GOODWILL AND INTANGIBLE ASSETS
|
AFS/IBEX
|
|||||||||
Intangible
|
Amount
|
Book Amortization
Period (Years)
|
Method
|
||||||
Trademark
|
$
|
540
|
15
|
Straight Line
|
|||||
Non-Compete
|
$
|
260
|
3
|
Straight Line
|
|||||
Customer Relationships
|
$
|
7,240
|
30
|
Accelerated
|
|||||
Other
|
$
|
173
|
Varied
|
Straight Line
|
Refund Advantage
|
|||||||||
Intangible
|
Amount
|
Book Amortization
Period (Years)
|
Method
|
||||||
Trademark
|
$
|
4,950
|
15
|
Accelerated
|
|||||
Non-Compete
|
$
|
40
|
3
|
Straight Line
|
|||||
Customer Relationships
|
$
|
18,800
|
12 to 20
|
Accelerated
|
|||||
Other
|
$
|
329
|
Varied
|
Straight Line
|
March 31,
|
||||||||
2016
|
2015
|
|||||||
(Dollars in Thousands)
|
||||||||
Goodwill
|
||||||||
Balance as of September 30
|
$
|
36,928
|
$
|
-
|
||||
Acquisitions during the period
|
-
|
11,578
|
||||||
Write-offs during the period
|
-
|
-
|
||||||
Balance as of March 31
|
$
|
36,928
|
$
|
11,578
|
Trademark
|
Non-Compete
|
Customer
Relationships
|
All Others
|
Total
|
||||||||||||||||
Intangibles
|
||||||||||||||||||||
Balance as of September 30, 2015
|
$
|
5,439
|
$
|
227
|
$
|
24,811
|
$
|
3,100
|
$
|
33,577
|
||||||||||
Acquisitions during the period
|
-
|
-
|
-
|
123
|
123
|
|||||||||||||||
Amortization during the period
|
(144
|
)
|
(50
|
)
|
(2,127
|
)
|
(107
|
)
|
(2,428
|
)
|
||||||||||
Write-offs during the period
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Balance as of March 31, 2016
|
$
|
5,295
|
$
|
177
|
$
|
22,684
|
$
|
3,116
|
$
|
31,272
|
Trademark
|
Non-Compete
|
Customer
Relationships
|
All Others
|
Total
|
||||||||||||||||
Intangibles
|
||||||||||||||||||||
Balance as of September 30, 2014
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
2,588
|
$
|
2,588
|
||||||||||
Acquisitions during the period
|
540
|
260
|
7,240
|
394
|
8,434
|
|||||||||||||||
Amortization during the period
|
(12
|
)
|
(29
|
)
|
(394
|
)
|
(120
|
)
|
(555
|
)
|
||||||||||
Write-offs during the period
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Balance as of March 31, 2015
|
$
|
528
|
$
|
231
|
$
|
6,846
|
$
|
2,862
|
$
|
10,467
|
NOTE 12. | REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS |
NOTE 13.
|
SUBSEQUENT EVENTS
|
Non-Performing Assets As Of
|
||||||||
March 31, 2016
|
September 30, 2015
|
|||||||
Non-Performing Loans
|
(Dollars in Thousands)
|
|||||||
Non-Accruing Loans:
|
||||||||
1-4 Family Real Estate
|
$
|
22
|
$
|
24
|
||||
Commercial & Multi Family Real Estate
|
607
|
904
|
||||||
Agricultural Operating
|
3,421
|
5,132
|
||||||
Total (1)
|
4,050
|
6,060
|
||||||
Accruing Loans Delinquent 90 Days or More
|
||||||||
Consumer
|
5
|
13
|
||||||
Premium Finance
|
611
|
1,728
|
||||||
Total
|
616
|
1,741
|
||||||
Total Non-Performing Loans
|
4,666
|
7,801
|
||||||
Other Assets
|
||||||||
Total Other Assets
|
-
|
-
|
||||||
Total Non-Performing Assets
|
$
|
4,666
|
$
|
7,801
|
||||
Total as a Percentage of Total Assets
|
0.15
|
%
|
0.31
|
%
|
(1) | The Company had no non-performing TDRs as of March 31, 2016 and September 30, 2015. In addition, the Company had $0.5 million and $0.6 million of performing TDRs in accordance with their terms at March 31, 2016 and September 30, 2015, respectively. |
Three Months Ended March 31,
|
2016
|
2015
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$
|
774,197
|
$
|
8,548
|
4.44
|
%
|
$
|
607,412
|
$
|
7,637
|
5.10
|
%
|
||||||||||||
Mortgage-backed securities
|
800,685
|
4,768
|
2.39
|
%
|
719,439
|
3,919
|
2.21
|
%
|
||||||||||||||||
Other investments and fed funds sold
|
1,315,714
|
7,313
|
3.21
|
%
|
951,319
|
4,203
|
2.61
|
%
|
||||||||||||||||
Total interest-earning assets
|
2,890,596
|
$
|
20,629
|
3.31
|
%
|
2,278,170
|
$
|
15,759
|
3.15
|
%
|
||||||||||||||
Non-interest-earning assets
|
187,859
|
102,345
|
||||||||||||||||||||||
Total assets
|
$
|
3,078,455
|
$
|
2,380,515
|
||||||||||||||||||||
Non-interest bearing deposits
|
$
|
2,232,131
|
$
|
-
|
0.00
|
%
|
$
|
1,862,040
|
$
|
-
|
0.00
|
%
|
||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing checking
|
36,563
|
21
|
0.23
|
%
|
35,673
|
22
|
0.25
|
%
|
||||||||||||||||
Savings
|
62,636
|
5
|
0.04
|
%
|
34,763
|
14
|
0.16
|
%
|
||||||||||||||||
Money markets
|
46,308
|
19
|
0.16
|
%
|
38,235
|
14
|
0.15
|
%
|
||||||||||||||||
Time deposits
|
58,580
|
90
|
0.62
|
%
|
72,101
|
122
|
0.69
|
%
|
||||||||||||||||
FHLB advances
|
8,648
|
126
|
5.84
|
%
|
7,000
|
122
|
7.07
|
%
|
||||||||||||||||
Overnight fed funds purchased
|
277,681
|
315
|
0.46
|
%
|
83,278
|
62
|
0.30
|
%
|
||||||||||||||||
Other borrowings
|
11,537
|
115
|
4.02
|
%
|
22,056
|
117
|
2.15
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
501,953
|
691
|
0.55
|
%
|
293,106
|
473
|
0.65
|
%
|
||||||||||||||||
Total deposits and interest-bearing liabilities
|
2,734,084
|
$
|
691
|
0.10
|
%
|
2,155,146
|
$
|
473
|
0.09
|
%
|
||||||||||||||
Other non-interest bearing liabilities
|
42,917
|
26,852
|
||||||||||||||||||||||
Total liabilities
|
2,777,001
|
2,181,998
|
||||||||||||||||||||||
Shareholders' equity
|
301,454
|
198,517
|
||||||||||||||||||||||
Total liabilities and shareholders' equity
|
$
|
3,078,455
|
$
|
2,380,515
|
||||||||||||||||||||
Net interest income and net interest rate spread including non-interest bearing deposits
|
$
|
19,938
|
3.21
|
%
|
$
|
15,286
|
3.06
|
%
|
||||||||||||||||
Net interest margin
|
3.22
|
%
|
3.06
|
%
|
Six Months Ended March 31,
|
2016
|
2015
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
||||||||||||||||||
Interest-earning assets:
|
||||||||||||||||||||||||
Loans receivable
|
$
|
754,383
|
$
|
16,867
|
4.47
|
%
|
$
|
570,091
|
$
|
14,033
|
4.94
|
%
|
||||||||||||
Mortgage-backed securities
|
739,557
|
8,481
|
2.29
|
%
|
704,219
|
7,743
|
2.21
|
%
|
||||||||||||||||
Other investments and fed funds sold
|
1,209,758
|
13,556
|
3.23
|
%
|
877,675
|
8,215
|
2.71
|
%
|
||||||||||||||||
Total interest-earning assets
|
2,703,698
|
$
|
38,904
|
3.32
|
%
|
2,151,985
|
$
|
29,991
|
3.13
|
%
|
||||||||||||||
Non-interest-earning assets
|
177,815
|
93,726
|
||||||||||||||||||||||
Total assets
|
$
|
2,881,513
|
$
|
2,245,711
|
||||||||||||||||||||
Non-interest bearing deposits
|
$
|
1,993,571
|
$
|
-
|
0.00
|
%
|
$
|
1,636,444
|
$
|
-
|
0.00
|
%
|
||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing checking
|
35,544
|
42
|
0.24
|
%
|
35,752
|
44
|
0.25
|
%
|
||||||||||||||||
Savings
|
54,071
|
11
|
0.04
|
%
|
31,175
|
29
|
0.19
|
%
|
||||||||||||||||
Money markets
|
45,573
|
37
|
0.16
|
%
|
39,129
|
30
|
0.15
|
%
|
||||||||||||||||
Time deposits
|
72,192
|
208
|
0.58
|
%
|
99,562
|
301
|
0.61
|
%
|
||||||||||||||||
FHLB advances
|
63,557
|
331
|
1.04
|
%
|
7,000
|
247
|
7.08
|
%
|
||||||||||||||||
Overnight fed funds purchased
|
278,306
|
553
|
0.40
|
%
|
161,973
|
243
|
0.30
|
%
|
||||||||||||||||
Other borrowings
|
12,548
|
229
|
3.64
|
%
|
23,239
|
240
|
2.07
|
%
|
||||||||||||||||
Total interest-bearing liabilities
|
561,791
|
1,411
|
0.50
|
%
|
397,830
|
1,134
|
0.57
|
%
|
||||||||||||||||
Total deposits and interest-bearing liabilities
|
2,555,362
|
$
|
1,411
|
0.11
|
%
|
2,034,274
|
$
|
1,134
|
0.11
|
%
|
||||||||||||||
Other non-interest bearing liabilities
|
38,103
|
22,811
|
||||||||||||||||||||||
Total liabilities
|
2,593,465
|
2,057,085
|
||||||||||||||||||||||
Stockholders' equity
|
288,048
|
188,626
|
||||||||||||||||||||||
Total liabilities and stockholders' equity
|
$
|
2,881,513
|
$
|
2,245,711
|
||||||||||||||||||||
Net interest income and net interest rate spread including non-interest bearing deposits
|
$
|
37,493
|
3.21
|
%
|
$
|
28,857
|
3.02
|
%
|
||||||||||||||||
Net interest margin
|
3.22
|
%
|
3.03
|
%
|
Three Months Ended March 31,
|
2016
|
2015
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
||||||||||||||||||
Securities Portfolio Assets
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$
|
800,685
|
$
|
4,768
|
2.39
|
%
|
$
|
719,439
|
$
|
3,919
|
2.21
|
%
|
||||||||||||
*Other investments
|
1,219,791
|
7,097
|
3.39
|
%
|
717,306
|
4,048
|
3.37
|
%
|
||||||||||||||||
Total Securities Portfolio Assets
|
$
|
2,020,476
|
$
|
11,865
|
2.99
|
%
|
$
|
1,436,745
|
$
|
7,967
|
2.79
|
%
|
||||||||||||
*Excludes FHLB Stock
|
(1) | Tax rate used to arrive at a TEY for three months ended March 2016 is 34% |
(1) | Tax rate used to arrive at a TEY for three months ended March 2015 is 34% |
Six Months Ended March 31,
|
2016
|
2015
|
||||||||||||||||||||||
(Dollars in Thousands)
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
Average
Outstanding
Balance
|
Interest
Earned /
Paid
|
Yield /
Rate
|
||||||||||||||||||
Securities Portfolio Assets
|
||||||||||||||||||||||||
Mortgage-backed securities
|
$
|
739,557
|
$
|
8,481
|
2.29
|
%
|
$
|
704,219
|
$
|
7,743
|
2.21
|
%
|
||||||||||||
*Other investments
|
1,131,236
|
13,162
|
3.38
|
%
|
712,958
|
7,931
|
3.25
|
%
|
||||||||||||||||
Total Securities Portfolio Assets
|
$
|
1,870,793
|
$
|
21,643
|
2.95
|
%
|
$
|
1,417,177
|
$
|
15,674
|
2.73
|
%
|
||||||||||||
*Excludes FHLB Stock
|
(1) | Tax rate used to arrive at a TEY for the six months ended March 2016 is 34% |
(1) | Tax rate used to arrive at a TEY for the six months ended March 2015 is 34% |
Company
|
Bank
|
Minimum
Requirement For
Capital Adequacy
Purposes
|
Minimum
Requirement to Be
Well Capitalized
Under Prompt
Corrective Action
Provisions
|
|||||||||||||||||||||||||||||
At March 31, 2016
|
Actual
Amount
|
Ratio
|
Actual
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||||||||
(Dollars in Thousands)
|
||||||||||||||||||||||||||||||||
Tier 1 (core) capital (to adjusted total assets)
|
$
|
249,522
|
8.30
|
%
|
$
|
243,106
|
8.09
|
%
|
$
|
120,250
|
4.00
|
%
|
$
|
150,312
|
5.00
|
%
|
||||||||||||||||
Common equity Tier 1 (to risk-weighted assets)
|
241,129
|
17.75
|
243,106
|
17.89
|
61,134
|
4.50
|
88,304
|
6.50
|
||||||||||||||||||||||||
Tier 1 (core) capital (to risk-weighted assets)
|
249,522
|
18.36
|
243,106
|
17.89
|
81,512
|
6.00
|
108,682
|
8.00
|
||||||||||||||||||||||||
Total qualifying capital (to risk-weighted assets)
|
257,032
|
18.92
|
250,616
|
18.45
|
108,682
|
8.00
|
135,853
|
10.00
|
Standardized Approach (1)
March 31, 2016
|
||||
(Dollars in Thousands)
|
||||
Total equity
|
$
|
313,287
|
||
Adjustments:
|
||||
LESS: Goodwill, net of associated deferred tax liabilities
|
36,190
|
|||
LESS: Certain other intangible assets
|
18,763
|
|||
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards
|
2,876
|
|||
LESS: Net unrealized gains (losses) on available-for-sale securities
|
14,329
|
|||
Common Equity Tier 1 (1)
|
241,129
|
|||
Long-term debt and other instruments qualifying as Tier 1
|
10,310
|
|||
LESS: Additional tier 1 capital deductions
|
1,917
|
|||
Total Tier 1 capital
|
249,522
|
|||
Allowance for loan losses
|
7,510
|
|||
Total qualifying capital
|
257,032
|
(1) | Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. |
Net Sensitive Earnings at Risk
|
||||||||||||||||||||
Balances as of March 31, 2016
|
Standard (Parallel Shift) Year 1
|
|||||||||||||||||||
Net Interest Income at Risk%
|
||||||||||||||||||||
-100
|
+100
|
+200
|
+300
|
+400
|
||||||||||||||||
Basis Point Change Scenario
|
-8.8
|
%
|
2.6
|
%
|
2.0
|
%
|
0.7
|
%
|
-0.9
|
%
|
||||||||||
Board Policy Limits
|
-5.0
|
%
|
-5.0
|
%
|
-10.0
|
%
|
-15.0
|
%
|
-20.0
|
%
|
Net Sensitive Earnings at Risk
|
||||||||||||||||||||
Alternative IRR Results
|
Standard (Parallel Shift) Year 1
|
|||||||||||||||||||
Net Interest Income at Risk%
|
||||||||||||||||||||
-100
|
+100
|
+200
|
+300
|
+400
|
||||||||||||||||
Basis Point Change Scenario
|
-10.1
|
%
|
5.8
|
%
|
8.3
|
%
|
10.2
|
%
|
11.8
|
%
|
||||||||||
Board Policy Limits
|
-5.0
|
%
|
-5.0
|
%
|
-10.0
|
%
|
-15.0
|
%
|
-20.0
|
%
|
Balances as of March 31, 2016
|
||||||||||||||||||||||||||||||||
% of
|
Change in Interest Income/Expense
for a given change in interest rates |
|||||||||||||||||||||||||||||||
Total Earning
|
Total Earning
|
Over / (Under) Base Case Parallel Ramp
|
||||||||||||||||||||||||||||||
Basis Point Change Scenario
|
Assets (in $000's)
|
Assets
|
-100
|
Base
|
+100
|
+200
|
+300
|
+400
|
||||||||||||||||||||||||
Total Loans
|
776,795
|
29.2
|
%
|
37,289
|
39,614
|
41,935
|
44,192
|
46,410
|
48,674
|
|||||||||||||||||||||||
Total Investments (non-TEY) and other Earning Assets
|
1,884,053
|
70.8
|
%
|
35,413
|
42,179
|
47,336
|
50,010
|
52,131
|
54,009
|
|||||||||||||||||||||||
Total Interest-Sensitive Income
|
2,660,848
|
100.0
|
%
|
72,702
|
81,793
|
89,271
|
94,202
|
98,541
|
102,683
|
|||||||||||||||||||||||
Total Interest-Bearing Deposits
|
206,978
|
30.4
|
%
|
386
|
509
|
1,249
|
1,988
|
2,728
|
3,467
|
|||||||||||||||||||||||
Total Borrowings
|
473,626
|
69.6
|
%
|
490
|
2,543
|
7,209
|
11,875
|
16,542
|
21,208
|
|||||||||||||||||||||||
Total Interest-Sensitive Expense
|
680,604
|
100.0
|
%
|
876
|
3,052
|
8,458
|
13,863
|
19,270
|
24,675
|
Alternative IRR Results
|
||||||||||||||||||||||||||||||||
% of
|
Change in Interest Income/Expense
for a given change in interest rates |
|||||||||||||||||||||||||||||||
Total Earning
|
Total Earning
|
Over / (Under) Base Case Parallel Ramp
|
||||||||||||||||||||||||||||||
Basis Point Change Scenario
|
Assets (in $000's)
|
Assets
|
-100
|
Base
|
+100
|
+200
|
+300
|
+400
|
||||||||||||||||||||||||
Total Loans
|
776,795
|
28.5
|
%
|
37,289
|
39,614
|
41,935
|
44,192
|
46,410
|
48,674
|
|||||||||||||||||||||||
Total Investments (non-TEY) and other Earning Assets
|
1,949,255
|
71.5
|
%
|
35,413
|
42,506
|
48,330
|
51,687
|
54,505
|
57,097
|
|||||||||||||||||||||||
Total Interest-Sensitive Income
|
2,726,050
|
100.0
|
%
|
72,702
|
82,120
|
90,265
|
95,879
|
100,915
|
105,771
|
|||||||||||||||||||||||
Total Interest-Bearing Deposits
|
206,978
|
41.7
|
%
|
386
|
509
|
1,249
|
1,988
|
2,728
|
3,467
|
|||||||||||||||||||||||
Total Borrowings
|
289,582
|
58.3
|
%
|
491
|
1,726
|
4,535
|
7,346
|
10,155
|
12,964
|
|||||||||||||||||||||||
Total Interest-Sensitive Expense
|
496,560
|
100.0
|
%
|
877
|
2,235
|
5,784
|
9,334
|
12,883
|
16,431
|
Balances as of March 31, 2016
|
Standard (Parallel Shift)
|
|||||||||||||||||||
Economic Value of Equity at Risk%
|
||||||||||||||||||||
-100
|
+100
|
+200
|
+300
|
+400
|
||||||||||||||||
Basis Point Change Scenario
|
-3.8
|
%
|
-0.6
|
%
|
-3.4
|
%
|
-7.0
|
%
|
-10.5
|
%
|
||||||||||
Board Policy Limits
|
-10.0
|
%
|
-10.0
|
%
|
-20.0
|
%
|
-30.0
|
%
|
-40.0
|
%
|
Alternative IRR Results
|
Standard (Parallel Shift)
|
|||||||||||||||||||
Economic Value of Equity at Risk%
|
||||||||||||||||||||
-100
|
+100
|
+200
|
+300
|
+400
|
||||||||||||||||
Basis Point Change Scenario
|
-5.5
|
%
|
1.2
|
%
|
0.2
|
%
|
-1.7
|
%
|
-3.7
|
%
|
||||||||||
Board Policy Limits
|
-10.0
|
%
|
-10.0
|
%
|
-20.0
|
%
|
-30.0
|
%
|
-40.0
|
%
|
Balances as of March 31, 2016
|
||||||||||||||||||||||||||||
% of
|
Change in Economic Value
for a given change in interest rates |
|||||||||||||||||||||||||||
Book
|
Total
|
Over / (Under) Base Case Parallel Ramp
|
||||||||||||||||||||||||||
Basis Point Change Scenario
|
Value (in $000's)
|
Assets
|
-100
|
+100
|
+200
|
+300
|
+400
|
|||||||||||||||||||||
Total Loans
|
776,795
|
25
|
%
|
1.6
|
%
|
-1.9
|
%
|
-3.8
|
%
|
-5.8
|
%
|
-7.5
|
%
|
|||||||||||||||
Total Investment
|
1,884,053
|
62
|
%
|
4.0
|
%
|
-4.6
|
%
|
-9.4
|
%
|
-14.0
|
%
|
-18.4
|
%
|
|||||||||||||||
Other Assets
|
394,068
|
13
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
|||||||||||||||
Assets
|
3,054,916
|
100
|
%
|
3.1
|
%
|
-3.6
|
%
|
-7.3
|
%
|
-11.0
|
%
|
-14.4
|
%
|
|||||||||||||||
Interest Bearing Deposits
|
206,978
|
8
|
%
|
4.1
|
%
|
-2.5
|
%
|
-4.7
|
%
|
-6.7
|
%
|
-8.6
|
%
|
|||||||||||||||
Non-Interest Bearing Deposits
|
2,022,350
|
73
|
%
|
6.4
|
%
|
-5.9
|
%
|
-11.3
|
%
|
-16.2
|
%
|
-20.7
|
%
|
|||||||||||||||
Total Borrowings & Other Liabilities
|
526,351
|
19
|
%
|
0.1
|
%
|
-0.1
|
%
|
-0.1
|
%
|
-0.2
|
%
|
-0.2
|
%
|
|||||||||||||||
Liabilities
|
2,755,679
|
100
|
%
|
4.9
|
%
|
-4.4
|
%
|
-8.4
|
%
|
-12.0
|
%
|
-15.4
|
%
|
Alternative IRR Results
|
||||||||||||||||||||||||||||
% of
|
Change in Economic Value
for a given change in interest rates |
|||||||||||||||||||||||||||
Book
|
Total
|
Over / (Under) Base Case Parallel Ramp
|
||||||||||||||||||||||||||
Basis Point Change Scenario
|
Value (in $000's)
|
Assets
|
-100
|
+100
|
+200
|
+300
|
+400
|
|||||||||||||||||||||
Total Loans
|
776,795
|
25
|
%
|
1.6
|
%
|
-1.9
|
%
|
-3.8
|
%
|
-5.8
|
%
|
-7.5
|
%
|
|||||||||||||||
Total Investment
|
1,949,255
|
64
|
%
|
3.9
|
%
|
-4.5
|
%
|
-9.1
|
%
|
-13.6
|
%
|
-17.8
|
%
|
|||||||||||||||
Other Assets
|
324,554
|
11
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
0.0
|
%
|
|||||||||||||||
Assets
|
3,050,604
|
100
|
%
|
3.1
|
%
|
-3.6
|
%
|
-7.3
|
%
|
-11.0
|
%
|
-14.4
|
%
|
|||||||||||||||
Interest Bearing Deposits
|
206,978
|
8
|
%
|
4.1
|
%
|
-2.5
|
%
|
-4.7
|
%
|
-6.7
|
%
|
-8.6
|
%
|
|||||||||||||||
Non-Interest Bearing Deposits
|
2,249,666
|
82
|
%
|
6.5
|
%
|
-5.9
|
%
|
-11.3
|
%
|
-16.3
|
%
|
-20.8
|
%
|
|||||||||||||||
Total Borrowings & Other Liabilities
|
299,034
|
11
|
%
|
0.1
|
%
|
-0.1
|
%
|
-0.2
|
%
|
-0.3
|
%
|
-0.3
|
%
|
|||||||||||||||
Liabilities
|
2,755,678
|
100
|
%
|
5.5
|
%
|
-4.9
|
%
|
-9.4
|
%
|
-13.6
|
%
|
-17.3
|
%
|
META FINANCIAL GROUP, INC.
|
||
Date: May 5, 2016
|
By:
|
/s/ J. Tyler Haahr
|
J. Tyler Haahr, Chairman of the Board
|
||
and Chief Executive Officer
|
||
Date: May 5, 2016
|
By:
|
/s/ Glen W. Herrick
|
Glen W. Herrick, Executive Vice President
|
||
and Chief Financial Officer
|
Exhibit
Number
|
Description
|
3 (i)
|
Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to Meta Financial Group, Inc.'s Registration Statement on Form S-3 (Commission File No. 333-188535) filed on May 10, 2013).
|
3 (ii)
|
Certificate of Amendment to the Certificate of Incorporation, as amended (incorporated by reference to Exhibit 3.1 to Meta Financial Group, Inc.'s Current Report on Form 8-K filed on January 26, 2016).
|
Section 302 certification of Chief Executive Officer.
|
|
Section 302 certification of Chief Financial Officer.
|
|
Section 906 certification of Chief Executive Officer.
|
|
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
|
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 5, 2016
|
/s/ J. Tyler Haahr
|
Chairman of the Board and Chief Executive Officer
|
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 5, 2016
|
/s/ Glen W. Herrick
|
Executive Vice President and Chief Financial Officer
|
(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. |
(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. |
Document and Entity Information - shares |
6 Months Ended | |
---|---|---|
Mar. 31, 2016 |
May. 02, 2016 |
|
Document Information [Line Items] | ||
Entity Registrant Name | META FINANCIAL GROUP INC | |
Entity Central Index Key | 0000907471 | |
Current Fiscal Year End Date | --09-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Document Fiscal Year Focus | 2016 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 8,504,034 | |
Common Stock, Nonvoting [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Sep. 30, 2015 |
---|---|---|
ASSETS | ||
Loans receivable, allowance for loan losses | $ 7,431 | $ 6,255 |
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 |
Treasury stock (in shares) | 0 | 20,250 |
Common Stock [Member] | ||
STOCKHOLDERS' EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 8,501,077 | 8,183,272 |
Common stock, shares outstanding (in shares) | 8,501,077 | 8,163,022 |
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 |
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2016 |
|
Non-interest income: | ||
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ 29 | $ 50 |
Income tax expense (benefit) reclassified from accumulated other comprehensive income | $ 11 | $ 18 |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income | $ 14,283 | $ 5,181 | $ 18,341 | $ 8,776 |
Other comprehensive income (loss): | ||||
Change in net unrealized gain (loss) on securities | 16,216 | 5,940 | 18,837 | 12,452 |
Losses (gains) realized in net income | (29) | (17) | (50) | 1,243 |
Total available for sale adjustment | 16,187 | 5,923 | 18,787 | 13,695 |
Deferred income tax effect | 5,938 | 2,189 | 6,913 | 5,024 |
Total other comprehensive income (loss) | 10,249 | 3,734 | 11,874 | 8,671 |
Total comprehensive income (loss) | $ 24,532 | $ 8,915 | $ 30,215 | $ 17,447 |
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares |
6 Months Ended | |
---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
|
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividends declared on common stock (in dollars per share) | $ 0.26 | $ 0.26 |
BASIS OF PRESENTATION |
6 Months Ended | ||
---|---|---|---|
Mar. 31, 2016 | |||
BASIS OF PRESENTATION [Abstract] | |||
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, 2015 included in Meta Financial Group, Inc.’s (“Meta Financial” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on December 14, 2015. 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 six month period ended March 31, 2016, are not necessarily indicative of the results expected for the year ending September 30, 2016. |
CREDIT DISCLOSURES |
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CREDIT DISCLOSURES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
CREDIT DISCLOSURES |
The allowance for loan losses represents management’s estimate of probable loan losses which have been incurred as of the date of the consolidated financial statements. The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur. Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. The allowance consists of specific, general, and unallocated components. The specific component relates to impaired loans. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered impaired and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Smaller-balance homogenous loans are collectively evaluated for impairment. Such loans include premium finance loans, residential first mortgage loans secured by one-to-four family residences, residential construction loans, automobile, manufactured homes, home equity and second mortgage loans, and tax product loans. Commercial and agricultural loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower 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 is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories. Non-accrual loans and all troubled debt restructurings are considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Loans receivable at March 31, 2016 and September 30, 2015 are as follows:
Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and six month periods ended March 31, 2016 and 2015 is as follows:
Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by our regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan 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 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 credits 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 have well-defined weaknesses creating a distinct possibility that 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 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. The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans to an individual, a specific industry, a geographic location, or an occupation. 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 Bank’s Tier 1 Capital plus the Allowance for Loan Losses. The asset classification of loans at March 31, 2016 and September 30, 2015 are as follows:
One-to-Four Family Residential Mortgage Lending. One-to-four family residential mortgage loan originations are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate and adjustable rate mortgage (“ARM”) loans for both permanent structures and those under construction. The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The Company originates one-to-four family residential mortgage 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 security property or the contract price. 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, unless the loan is insured by the Federal Housing Administration, guaranteed by Veterans Affairs or guaranteed by the Rural Housing Administration. Residential loans generally do not include prepayment penalties. Due to consumer demand, the Company offers fixed-rate mortgage loans with terms up to 30 years, most of which conform to secondary market, i.e., Fannie Mae, Ginnie Mae, and Freddie Mac standards. The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales. Interest rates charged on these fixed-rate loans are competitively priced according to market conditions. The Company also currently offers five- and ten-year ARM loans. These loans have a fixed-rate for the stated period and, thereafter, adjust annually. These loans generally provide for an annual cap of up to 200 basis points and a lifetime cap of 600 basis points over the initial rate. As a consequence of using an initial fixed-rate and caps, the interest rates on these loans may not be as rate sensitive as the Company’s cost of funds. The Company’s ARMs do not permit negative amortization of principal and are not convertible into fixed-rate loans. The Company’s delinquency experience on its ARM loans has generally been similar to its experience on fixed-rate residential loans. The current low mortgage interest rate environment makes ARM loans relatively unattractive and very few are currently being originated. In underwriting one-to-four family residential 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. The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and 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 allowing 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. Commercial and Multi-Family Real Estate Lending. The Company engages in commercial and multi-family real estate lending in its primary market area and surrounding areas and, in order to supplement its loan portfolio, has purchased whole loan and participation interests in loans from other financial institutions. The purchased loans and loan participation interests are generally secured by properties primarily located in the Midwest and the West. The Company’s commercial and multi-family real estate loan portfolio is 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 security property, 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. Commercial and multi-family real estate loans generally present a higher level of risk than loans secured by one-to-four family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, 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. Agricultural Lending. The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer and other farm-related products. 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, upon sale. Such loans provide for payments of principal and interest at least annually or a lump sum payment upon maturity if the original term is less than one year. Loans secured by agricultural machinery are generally originated as fixed-rate loans with terms of up to seven years. 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 ten years, which then balloon or adjust annually thereafter. In addition, such loans generally amortize over a period of 20 to 25 years. Fixed-rate agricultural real estate loans generally have terms up to ten years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan. Agricultural lending affords the Company the opportunity to earn yields higher than those obtainable on one-to-four family residential lending, but involves a greater degree of risk than one-to-four family residential mortgage loans because of the typically larger loan amount. In addition, 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. Weather presents one of the greatest risks as hail, drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral. This risk can be reduced by the farmer with a variety of insurance coverages which can help to ensure loan repayment. Government support programs and the Company generally require that farmers procure crop insurance coverage. Grain and livestock prices also present a risk as prices may decline prior to sale, resulting in a failure to cover production costs. These risks may be reduced by the farmer with the use of futures contracts or options to mitigate price risk. The Company frequently requires borrowers to use futures contracts or options to reduce price risk and help ensure loan repayment. Another risk is the uncertainty of government programs and other regulations. During periods of low commodity prices, the income from government programs can be a significant source of cash for the borrower to make loan payments, and if these programs are discontinued or significantly changed, cash flow problems or defaults could result. Finally, many farms are dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm. Consumer Lending – Retail Bank. The Company, through the auspices of its “Retail Bank”, originates a variety of secured consumer loans, including home equity, home improvement, automobile, boat and loans secured by savings deposits. In addition, the Retail Bank offers other secured and unsecured consumer loans. The Retail Bank currently originates most of its consumer loans in its primary market area and surrounding areas. The largest component of the Retail Bank’s consumer loan portfolio consists of home equity loans and lines of credit. Substantially all of the Retail Bank’s home equity loans and lines of credit are secured by second mortgages on principal residences. The Retail Bank will lend amounts which, 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. The Retail Bank primarily originates automobile loans on a direct basis to the borrower, as opposed to indirect loans, which are made when the Retail Bank purchases loan contracts, often at a discount, from automobile dealers which have extended credit to their customers. The Bank’s automobile loans typically are originated at fixed interest rates with terms up to 60 months for new and used vehicles. Loans secured by automobiles are generally originated for up to 80% of the N.A.D.A. book value of the automobile securing the loan. 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. Consumer loans may entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Consumer Lending- Meta Payment Systems (“MPS”). The Company believes that well-managed, nationwide credit programs can help meet legitimate credit needs for prime and sub-prime borrowers, and affords the Company an opportunity to diversify the loan portfolio and minimize earnings exposure due to economic downturns. Therefore, MPS designs and administers certain credit programs that seek to accomplish these objectives. The MPS Credit Committee, consisting of members of Executive Management of the Company, is charged with monitoring, evaluating and reporting portfolio performance and the overall credit risk posed by its credit products. All proposed credit programs must first be reviewed and approved by the committee before such programs are presented to the Bank’s Board of Directors for approval. The Board of Directors of the Bank is ultimately responsible for final approval of any credit program. MPS strives to offer consumers innovative payment products, including credit products. Most credit products have fallen into the category of portfolio lending. MPS continues to work on new alternative portfolio lending products striving to serve its core customer base and to provide unique and innovative lending solutions to the unbanked and under-banked segment. The largest component of MPS’s consumer loan portfolio consists of taxpayer advances. These advances are available to eligible customers of our Refund Advantage Electronic Return Originators (“EROs”) and Liberty Tax franchisees. The product is offered with no incremental fees or interest charges to the borrower (with the tax preparer paying applicable fees) and repayments are contingent upon receipt of future tax refunds. This solution provides our network of over 10,000 EROs and Liberty Tax franchisees with an opportunity to attract new clients to their current customer base. A Portfolio Credit Policy which has been approved by the Board of Directors governs portfolio credit initiatives undertaken by MPS, whereby the Company retains some or all receivables and relies on the borrower as the underlying source of repayment. Several portfolio lending programs also have a contractual provision that requires the Bank to be indemnified for credit losses that meet or exceed predetermined levels. Such a program carries additional risks not commonly found in sponsorship programs, specifically funding and credit risk. Therefore, MPS has strived to employ policies, procedures and information systems that it believes commensurate with the added risk and exposure. Commercial Operating Lending. The Company also originates commercial operating loans. Most of the Company’s 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, and operating costs for the Company’s network of tax Electronic Return Originators (“EROs”). 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 loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan. ERO loans are not collateralized. The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s character, 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. Nonetheless, such loans are believed to carry higher credit risk than more traditional lending activities. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income and which are secured by real property whose value tends to be more easily ascertainable, 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, but not always, 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. Premium Finance Lending. Through its AFS/IBEX division, MetaBank provides 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. 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. Insurance premium financing is the business of extending credit to a policyholder to pay for insurance premiums when the insurance carrier requires payment in full at inception of coverage. 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 ten months on average. The down payment is set such that if the policy is cancelled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-180 days to convert the collateral into cash. In the event of default, AFS/IBEX, by statute and contract, has the power to cancel the insurance policy and establish a first position lien on the unearned portion of the premium from the insurance carrier. In the event of cancellation, the cash returned in payment of the unearned premium by the insurer should typically be sufficient to cover the receivable balance, the interest and other charges due. Due to notification requirements and processing time by most insurance carriers, many receivables will become delinquent beyond 90 days while the insurer is processing the return of the unearned premium. Generally, when a premium finance loan becomes delinquent for 210 days or more, or when collection of principal or interest becomes doubtful, the Company will place the loan on non-accrual status until the loan becomes current and has demonstrated a sustained period of satisfactory performance. Past due loans at March 31, 2016 and September 30, 2015 are as follows:
When analysis of borrower 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 is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories. As of March 31, 2016, there were no Premium Finance loans greater than 210 days past due. Impaired loans at March 31, 2016 and September 30, 2015 are as follows:
The following table provides the average recorded investment in impaired loans for the three and six month periods ended March 31, 2016 and 2015.
The Company’s troubled debt restructurings (“TDR”) typically involve forgiving a portion of interest or principal on existing loans or making loans at a rate materially less than current market rates. There were no loans modified in a TDR during the three and six month periods ended March 31, 2016 and 2015. Additionally, there were no TDR loans for which there was a payment default during the three and six month periods ended March 31, 2016 and 2015 that had been modified during the 12-month period prior to the default. |
ALLOWANCE FOR LOAN LOSSES |
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ALLOWANCE FOR LOAN LOSSES [Abstract] | |||
ALLOWANCE FOR LOAN LOSSES |
At March 31, 2016, the Company’s allowance for loan losses was $7.4 million, an increase of $1.1 million from $6.3 million at September 30, 2015. During the six months ended March 31, 2016, the Company recorded a provision for loan losses of $2.0 million, primarily due to loan growth. In addition, the Company had $0.8 million of net charge offs for the six months ended March 31, 2016, compared to $0.3 million for the six months ended March 31, 2015. The allowance for loan losses is established through the provision for loan losses based on management’s evaluation of the risk inherent in its loan portfolio and changes in the nature and volume of its loan activity, including those loans which are being specifically monitored by management. Such evaluation, which includes a review of loans for which full collectability may not be reasonably assured, considers, among other matters, the estimated fair value of the underlying collateral, economic conditions, historical loan loss experience and other factors that warrant recognition in providing for an appropriate loan loss allowance. Management closely monitors economic developments both regionally and nationwide, and considers these factors when assessing the appropriateness of its allowance for loan losses. The current economic environment continues to show signs of improvement in the Bank’s markets. The Bank’s loss rates over the past five years were very low. Notwithstanding these signs of improvement, the Bank does not believe it is likely these low loss conditions will continue indefinitely. Although the Bank’s four market areas have indirectly benefitted from a stable agricultural market, the market has become somewhat more stressed with lower commodity prices over the last couple of years and commodity prices remain lower than a few years ago. Loss rates in the agricultural real estate and agricultural operating loan portfolios have been minimal in the past five years. Management expects that future losses in this portfolio could be higher than recent historical experience. Management believes the low commodity prices and high land rents have the potential to negatively impact the economies of our agricultural markets. Management believes that, based on a detailed review of the loan portfolio, historic loan losses, current economic conditions, the size of the loan portfolio and other factors, the current level of the allowance for loan losses at March 31, 2016, reflects an appropriate allowance against probable losses from the loan portfolio. Although the Company maintains its allowance for loan 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 losses will not be required in future periods. In addition, the Company’s determination of the allowance for loan losses is subject to review by the OCC, which can require the establishment of additional general or specific allowances. Real estate properties acquired through foreclosure are recorded at fair value. If fair value at the date of foreclosure is lower than the balance of the related loan, the difference will be charged to the allowance for loan losses at the time of transfer. Valuations are periodically updated by management and, if the value declines, a specific provision for losses on such property is established by a charge to operations. |
EARNINGS PER COMMON SHARE ("EPS") |
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EARNINGS PER COMMON SHARE ("EPS") [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE ("EPS") |
Basic EPS is based on the net income divided by the weighted average number of common shares outstanding during the period. Allocated Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for EPS calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding. All ESOP shares were allocated as of March 31, 2016 and September 30, 2015. Diluted EPS shows the dilutive effect of additional common shares issuable pursuant to stock option agreements. A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three and six months ended March 31, 2016 and 2015 is presented below.
All stock options were considered in computing diluted EPS for the three and six months ended March 31, 2016. Stock options totaling 29,199 were not considered in computing diluted EPS for the three and six months ended March 31, 2015, because they were not dilutive. |
SECURITIES |
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SECURITIES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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, 2016 and September 30, 2015 are presented below.
Included in securities available for sale are trust preferred securities as follows:
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 we 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 we determine 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. 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. The Company had no trading securities at March 31, 2016 and September 30, 2015. 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, 2016 and September 30, 2015, are as follows:
At March 31, 2016, 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, and 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, no other-than-temporary impairment was recorded at March 31, 2016. 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 and certain 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.
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COMMITMENTS AND CONTINGENCIES |
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COMMITMENTS AND CONTINGENCIES [Abstract] | |||
COMMITMENTS AND CONTINGENCIES |
In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements. At March 31, 2016 and September 30, 2015, unfunded loan commitments approximated $131.4 million and $158.3 million, respectively, excluding undisbursed portions of loans in process. These unfunded loan commitments were principally for variable rate loans. 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. At March 31, 2016, the Company had one commitment to sell securities available for sale totaling $10.6 million. The Company had two commitments to purchase securities available for sale totaling $7.9 million and three commitments to purchase securities held to maturity totaling $3.0 million at September 30, 2015. The exposure to credit loss in the event of nonperformance 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. 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. Legal Proceedings The Company and the Bank have been named as defendants, along with other defendants, in four class action litigations commenced in three different federal district courts between October 23, 2015 and November 5, 2015: (1) Fuentes, et al. v. UniRush LLC, et al. (S.D.N.Y. Case No. 1:15-cv-08372); (2) Huff et al. v. UniRush, LLC et al. (E.D. Cal. Case No. 2:15-cv-02253-KJM-CMK); (3) Peterkin v. UniRush LLC, et al. (S.D.N.Y. Case No. 1:15-cv-08573); and (4) Jones v. UniRush, LLC et al. (E.D. Pa. Case No. 5:15-cv-05996-JLS). The same defendants, including the Company and the Bank, were also named as defendants in an additional class action litigation commenced in yet another federal district court on April 13, 2016: (5) Smith v. UniRush LLC, et al. (C.D. Cal. No. 2:16-cv-02533-SVW-E). The complaints in each of these five actions seek monetary damages for the alleged inability of customers of the prepaid card product RushCard to access the product for up to two weeks starting on or about October 12, 2015. The plaintiffs allege claims for breach of contract, fraud, misrepresentation, negligence, unjust enrichment, conversion, and breach of fiduciary duty and violations of various state consumer protection statutes prohibiting unfair or deceptive acts or trade/business practices. In addition, the OCC and the CFPB are examining the events surrounding the allegations with respect to the Company and the other defendants, respectively. The OCC has broad supervisory powers with respect to the Bank and could seek to initiate supervisory action if it believes such action is warranted. Because these cases were recently filed and are in their early stages and because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. The Company’s estimate of a range of reasonably possible loss is approximately $0 to $0.1 million. 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 INB and MetaBank. According to the Petition, NetSpend has informed Inter National Bank (“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 our 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. Certain corporate clients of an unrelated company named Springbok Services, Inc. (“Springbok”) requested through counsel a mediation as a means of reaching a settlement in lieu of commencing litigation against MetaBank. The results of that mediation have not led to a settlement. These claimants purchased MetaBank prepaid reward cards from Springbok, prior to Springbok’s bankruptcy. As a result of Springbok’s bankruptcy and cessation of business, some of the rewards cards that had been purchased were never activated or funded. Counsel for these companies have indicated that they are prepared to assert claims totaling approximately $1.5 million against MetaBank based on principal/agency or failure to supervise theories. The Company denies liability with respect to these claims. The Company’s estimate of a range of reasonably possible loss is approximately $0 to $0.3 million. The Bank commenced action against C&B Farms, LLC, Dakota River Farms, LLC, Dakota Grain Farms, LLC, Heather Swenson and Tracy Clement in early July, 2015, in the Third Judicial Circuit Court of the State of South Dakota, seeking to collect upon certain delinquent loans made in connection with the 2014 farming operations of the three identified limited liability companies and the personal guaranties of Swenson and Clement. The three companies and Clement answered the Complaint and asserted a counterclaim against the Bank and a third-party claim against the Bank’s loan officer, alleging fraud and misrepresentation, as well as promissory estoppel. On January 7, 2016, the Bank obtained a judgment for $6.1 million, the full amount due and owing on the delinquent loans, together with attorneys’ fees, costs and post-judgment interest. On February 25, 2016, the Court entered an order and judgment in favor of the Bank granting the Bank’s renewed motion for summary judgment as to counterclaims and third party claim. Other than the matters set forth above, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party other than ordinary litigation routine to their respective businesses. |
STOCK OPTION PLAN |
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STOCK OPTION PLAN [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTION PLAN |
The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, 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 grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans for the six months ended March 31, 2016:
At March 31, 2016, stock based compensation expense not yet recognized in income totaled $278,978, which is expected to be recognized over a weighted average remaining period of 1.74 years. |
SEGMENT INFORMATION |
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SEGMENT INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION |
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. In the Annual Report on Form 10-K for the year ended September 30, 2015, the Company reported its results of operations through three business segments: Meta Payment Systems, Retail Bank, and Other. Effective October 1, 2015, segments are now aligned with the new management operating structure implemented by the Company for fiscal year 2016. The Company accordingly has changed its basis of presentation for segments, and following such change, reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other. Certain shared services, including the investment portfolio, which was included in the former Retail Bank segment, is now included in Corporate Services/Other. AFS/IBEX and Refund Advantage were previously and are currently included in the Banking and Payments segments, respectively. Prior periods have been reclassified to conform to the current period presentation. The following tables present segment data for the Company for the three and six months ended March 31, 2016 and 2015, respectively.
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NEW ACCOUNTING PRONOUNCEMENTS |
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Mar. 31, 2016 | |||
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | |||
NEW ACCOUNTING PRONOUNCEMENTS |
Accounting Standards Update (“ASU”) No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements. This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined. Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date. This update is in effect for annual and interim periods beginning after December 15, 2015, and did not have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items This ASU eliminates the concept of extraordinary items from U.S. GAAP. The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. This update is effective for annual and interim periods beginning after December 15, 2015, and did not have a material impact on the Company’s consolidated financial statements. ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. This update is effective for annual and interim periods beginning after December 15, 2015, and did not have a material impact on the Company’s consolidated financial statements. |
FAIR VALUE MEASUREMENTS |
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FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FAIR VALUE MEASUREMENTS | NOTE 10. 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 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 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. Securities Available for Sale and Held to Maturity. Securities available for sale 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, corporate debt securities and trust preferred securities. The Company had no Level 3 securities at March 31, 2016 or September 30, 2015. 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 securities available for sale and held to maturity at March 31, 2016 and September 30, 2015. Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
Loans. The Company does not record loans at fair value on a recurring basis. However, if a loan is considered impaired, an allowance for loan losses is established. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables. The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2016 and September 30, 2015.
The following table discloses the Company’s estimated fair value amounts of its financial instruments. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of March 31, 2016 and September 30, 2015, 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, 2016 and September 30, 2015.
The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at March 31, 2016 and September 30, 2015. CASH AND CASH EQUIVALENTS The carrying amount of cash and short-term investments is assumed to approximate the fair value. SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost. Fair values for 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 RECEIVABLE, NET The fair value of loans is estimated using a historical or replacement cost basis concept (i.e. an entrance price concept). The fair value of loans was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers and for similar remaining maturities. When using the discounting method to determine fair value, loans were grouped by homogeneous loans with similar terms and conditions and discounted at a target rate at which similar loans would be made to borrowers at March 31, 2016 or September 30, 2015. In addition, when computing the estimated fair value for all loans, allowances for loan losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component. FEDERAL HOME LOAN BANK (“FHLB”) STOCK The fair value of such 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 non-interest bearing checking deposits, interest bearing checking deposits, savings, and money markets is assumed to approximate fair value, since such deposits are immediately withdrawable without penalty. The fair value of time certificates of deposit was estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities. In accordance with ASC 825, 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 ASC 825. 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 AND SUBORDINATED DEBENTURES 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 It must be noted that fair value estimates are made at a specific point in time, 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. |
GOODWILL AND INTANGIBLE ASSETS |
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GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS |
The Company recorded a total of $36.9 million of goodwill during the fiscal year ended September 30, 2015, due to two separate business combinations – $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Fort Knox Financial Services Corporation and its subsidiary (collectively referred to as “Refund Advantage”) on September 8, 2015. The goodwill associated with these transactions is deductible for tax purposes. As part of the each business combination, the Company also recognized the following amortizable intangible assets:
The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2016 and 2015 are as follows:
The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There was no impairment to intangible assets during the six months ended March 31, 2016 and 2015. The annual goodwill impairment test will be conducted at September 30, 2016. |
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS |
6 Months Ended | ||
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Mar. 31, 2016 | |||
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS [Abstract] | |||
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS |
On July 21, 2011, pursuant to the Dodd Frank Act, the OTS was integrated into the OCC and the functions of the OTS related to thrift holding companies were transferred to the Federal Reserve. The OCC, as the Bank’s primary federal regulator, is responsible for the ongoing examination, supervision and regulation of the Bank. The Dodd Frank Act maintains the existence of the federal savings association charter and the HOLA, the primary statute governing federal savings banks. The Federal Reserve is responsible for the ongoing examination, supervision and regulation of the Company. Prior to passage of the Dodd-Frank Act, the OTS had issued supervisory directives to the Bank, consent orders to the Bank and the Company, and had taken other regulatory action to require the Bank to reimburse certain consumers in connection with a credit program that was discontinued. All supervisory directives have been terminated, and on August 7, 2014, the OCC terminated the Bank’s Consent Order. A consent order that had been in effect against the Company was terminated on May 21, 2015 by the Federal Reserve. On January 5, 2015, the Federal Deposit Insurance Corporation (“FDIC”) published industry guidance in the form of Frequently Asked Questions (“FAQs”) with respect to the categorization of deposit liabilities as “brokered” deposits. On November 13, 2015, the FDIC issued for comment updated and annotated FAQs. On April 26, 2016, a final rule to amend how small banks (less than $10 billion in assets that have been FDIC insured for at least five years) are assessed for deposit insurance. The final rule will impose higher assessments for banks that FDIC believes present higher risk profiles. The new assessment rule becomes effective on July 1, 2016, if the FDIC’s reserve ratio reaches 1.15 percent before that date, and on the first day of the calendar quarter after the reserve ratio reaches 1.15 percent if it has not reached that level by July 1, 2016. Due to the Bank’s status as a "well-capitalized" institution under the FDIC's prompt corrective action regulations, and further with respect to the Bank’s financial condition in general, the Company does not at this time anticipate that either the Guidance or the Final Rule will have a material adverse impact on the Company’s business operations. However, should the Bank ever fail to be well-capitalized in the future, as a result of failing to meet the well-capitalized requirements, or the imposition of an individual minimum capital requirement or similar formal requirements, then, notwithstanding that the Bank has capital in excess of the well-capitalized minimum requirements, the Bank would be prohibited, absent waiver from the FDIC, from utilizing brokered deposits (i.e., may not accept, renew or rollover brokered deposits), which could produce serious adverse effects on the Company’s liquidity, and financial condition and results of operations. Similarly, should the Bank’s financial condition in general deteriorate, future FDIC assessments could have a material adverse effect on the Company. |
SUBSEQUENT EVENTS |
6 Months Ended | ||
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Mar. 31, 2016 | |||
SUBSEQUENT EVENTS [Abstract] | |||
SUBSEQUENT EVENTS |
Management has evaluated subsequent events. There were no material subsequent events that would require recognition or disclosure in our consolidated financial statements as of and for the quarter ended March 31, 2016. |
NEW ACCOUNTING PRONOUNCEMENTS (Policies) |
6 Months Ended |
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Mar. 31, 2016 | |
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | |
New Accounting Pronouncements | Accounting Standards Update (“ASU”) No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis This ASU requires organizations to recognize lease assets and lease liabilities on the balance sheet, along with disclosing key information about leasing arrangements. This update is effective for annual reporting periods beginning after December 15, 2018, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined. Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date. This update is in effect for annual and interim periods beginning after December 15, 2015, and did not have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items This ASU eliminates the concept of extraordinary items from U.S. GAAP. The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. This update is effective for annual and interim periods beginning after December 15, 2015, and did not have a material impact on the Company’s consolidated financial statements. ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. This update is effective for annual and interim periods beginning after December 15, 2015, and did not have a material impact on the Company’s consolidated financial statements. |
CREDIT DISCLOSURES (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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CREDIT DISCLOSURES [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Loan Receivables | Loans receivable at March 31, 2016 and September 30, 2015 are as follows:
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Activity in Allowance for Loan Losses | Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and six month periods ended March 31, 2016 and 2015 is as follows:
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Asset Classification of Loans Excluding Loans Held for Sale | The asset classification of loans at March 31, 2016 and September 30, 2015 are as follows:
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Summary of Past Due Loans | Past due loans at March 31, 2016 and September 30, 2015 are as follows:
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Impaired Loans | Impaired loans at March 31, 2016 and September 30, 2015 are as follows:
The following table provides the average recorded investment in impaired loans for the three and six month periods ended March 31, 2016 and 2015.
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EARNINGS PER COMMON SHARE ("EPS") (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EARNINGS PER COMMON SHARE ("EPS") [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 EPS for the three and six months ended March 31, 2016 and 2015 is presented below.
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SECURITIES (Tables) |
6 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SECURITIES [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Securities Available for Sale | The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at March 31, 2016 and September 30, 2015 are presented below.
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Securities Held to Maturity | The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at March 31, 2016 and September 30, 2015 are presented below.
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Trust Preferred Securities Included in Securities Available for Sale | Included in securities available for sale are trust preferred securities as follows:
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Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position | Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and September 30, 2015, are as follows:
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Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position | Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at March 31, 2016 and September 30, 2015, are as follows:
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Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in 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 and certain 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.
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STOCK OPTION PLAN (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK OPTION PLAN [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Activity of Options | The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans for the six months ended March 31, 2016:
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SEGMENT INFORMATION (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
SEGMENT INFORMATION [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Segment Information of Entity | The following tables present segment data for the Company for the three and six months ended March 31, 2016 and 2015, respectively.
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FAIR VALUE MEASUREMENTS (Tables) |
6 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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FAIR VALUE MEASUREMENTS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Fair Values of Securities Available for Sale and Held to Maturity | The following table summarizes the fair values of securities available for sale and held to maturity at March 31, 2016 and September 30, 2015. Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition.
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Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2016 and September 30, 2015.
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Quantitative Information about Level 3 Fair Value Measurements |
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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, 2016 and September 30, 2015.
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
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Mar. 31, 2016 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Summary of Amortizable Intangible Assets | As part of the each business combination, the Company also recognized the following amortizable intangible assets:
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Changes in Carrying Amount of Goodwill and Intangible Assets | The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2016 and 2015 are as follows:
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CREDIT DISCLOSURES, Troubled Debt Restructurings (Details) - Loan |
3 Months Ended | 6 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
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Troubled debt restructurings [Abstract] | ||||
Loans modified in TDR | 0 | 0 | 0 | 0 |
Loans modified in TDR, subsequent default | 0 | 0 | 0 | 0 |
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Sep. 30, 2015 |
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ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||
Allowance for loan losses | $ 7,431 | $ 7,431 | $ 6,255 | ||
Increase in allowance for loan losses | 1,100 | ||||
Provision for loan losses | $ 1,173 | $ 593 | 1,959 | $ 641 | |
Net charge offs (recoveries) | $ 800 | $ 300 |
SECURITIES, Held to Maturity (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Sep. 30, 2015 |
---|---|---|
Held-to-maturity Securities [Abstract] | ||
Amortized cost | $ 485,768 | $ 345,744 |
Gross unrealized gains | 7,808 | 2,182 |
Gross unrealized (losses) | (226) | (1,079) |
Fair value | 493,350 | 346,847 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 32,853 | 89,700 |
OVER 12 MONTHS, Fair Value | 59,862 | 72,695 |
TOTAL, Fair Value | 92,715 | 162,395 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (82) | (442) |
OVER 12 MONTHS, Unrealized (Losses) | (144) | (637) |
TOTAL, Unrealized (Losses) | (226) | (1,079) |
AMORTIZED COST [Abstract] | ||
Due in one year or less | 225 | 95 |
Due after one year through five years | 11,721 | 8,411 |
Due after five years through ten years | 143,869 | 140,145 |
Due after ten years | 261,456 | 130,516 |
Total | 417,271 | 279,167 |
Mortgage-backed securities | 68,497 | 66,577 |
Amortized cost | 485,768 | 345,744 |
FAIR VALUE [Abstract] | ||
Due in one year or less | 225 | 96 |
Due after one year through five years | 11,885 | 8,430 |
Due after five years through ten years | 147,574 | 140,505 |
Due after ten years | 265,258 | 131,712 |
Total | 424,942 | 280,743 |
Mortgage-backed securities | 68,408 | 66,104 |
Total held to maturity securities | 493,350 | 346,847 |
Non-bank Qualified Obligations of States and Political Subdivisions [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized cost | 396,480 | 259,627 |
Gross unrealized gains | 7,540 | 2,122 |
Gross unrealized (losses) | (61) | (419) |
Fair value | 403,959 | 261,330 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 25,003 | 78,663 |
OVER 12 MONTHS, Fair Value | 422 | 4,136 |
TOTAL, Fair Value | 25,425 | 82,799 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (56) | (365) |
OVER 12 MONTHS, Unrealized (Losses) | (5) | (54) |
TOTAL, Unrealized (Losses) | (61) | (419) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 396,480 | 259,627 |
FAIR VALUE [Abstract] | ||
Total held to maturity securities | 403,959 | 261,330 |
Mortgage-backed Securities [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized cost | 68,497 | 66,577 |
Gross unrealized gains | 30 | 0 |
Gross unrealized (losses) | (119) | (473) |
Fair value | 68,408 | 66,104 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 2,945 | 5,509 |
OVER 12 MONTHS, Fair Value | 56,954 | 60,595 |
TOTAL, Fair Value | 59,899 | 66,104 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (10) | (43) |
OVER 12 MONTHS, Unrealized (Losses) | (109) | (430) |
TOTAL, Unrealized (Losses) | (119) | (473) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 68,497 | 66,577 |
FAIR VALUE [Abstract] | ||
Total held to maturity securities | 68,408 | 66,104 |
Obligations of States and Political Subdivisions [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized cost | 20,791 | 19,540 |
Gross unrealized gains | 238 | 60 |
Gross unrealized (losses) | (46) | (187) |
Fair value | 20,983 | 19,413 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 4,905 | 5,528 |
OVER 12 MONTHS, Fair Value | 2,486 | 7,964 |
TOTAL, Fair Value | 7,391 | 13,492 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (16) | (34) |
OVER 12 MONTHS, Unrealized (Losses) | (30) | (153) |
TOTAL, Unrealized (Losses) | (46) | (187) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 20,791 | 19,540 |
FAIR VALUE [Abstract] | ||
Total held to maturity securities | $ 20,983 | $ 19,413 |
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions |
3 Months Ended | 6 Months Ended | |
---|---|---|---|
Mar. 31, 2016
USD ($)
Commitment
ClassAction
Court
|
Mar. 31, 2016
USD ($)
Commitment
ClassAction
Court
|
Sep. 30, 2015
USD ($)
Commitment
|
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COMMITMENTS AND CONTINGENCIES [Abstract] | |||
Unfunded loan commitments | $ 131.4 | $ 131.4 | $ 158.3 |
Number of commitments | Commitment | 1 | 1 | 2 |
Commitment to sell securities available for sale, amount | $ 10.6 | $ 10.6 | |
Commitment to purchase securities, available for sale | $ 7.9 | ||
Number of commitment to purchase securities, held to maturity | Commitment | 3 | ||
Purchase commitment amount, held to maturity | $ 3.0 | ||
Loss Contingencies [Line Items] | |||
Number of class action litigations | ClassAction | 4 | 4 | |
Number of federal district courts | Court | 3 | 3 | |
Number of action seek monetary damages | ClassAction | 5 | ||
Judgment awarded | $ 6.1 | ||
Inter National Bank [Member] | |||
Loss Contingencies [Line Items] | |||
Amount of shortfall in depository account | 10.5 | ||
Springbok Services Inc. [Member] | |||
Loss Contingencies [Line Items] | |||
Estimate of possible loss | $ 1.5 | 1.5 | |
Range of reasonably possible loss, minimum | 0.0 | 0.0 | |
Range of reasonably possible loss, maximum | $ 0.3 | 0.3 | |
UniRush, LLC [Member] | |||
Loss Contingencies [Line Items] | |||
Period of inability of customers of prepaid card product to access product | 14 days | ||
Range of reasonably possible loss, minimum | $ 0.0 | 0.0 | |
Range of reasonably possible loss, maximum | $ 0.1 | $ 0.1 |
STOCK OPTION PLAN (Details) - USD ($) |
3 Months Ended | 6 Months Ended | 12 Months Ended |
---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2016 |
Sep. 30, 2015 |
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Number of Shares [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 189,088 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (12,283) | ||
Forfeited or expired (in shares) | 0 | ||
Options outstanding, end of period (in shares) | 176,805 | 176,805 | 189,088 |
Options exercisable, end of period (in shares) | 176,805 | 176,805 | |
Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning of period (in dollars per share) | $ 25.74 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 26.21 | ||
Forfeited or expired (in dollars per share) | 0 | ||
Options outstanding, end of period (in dollars per share) | $ 25.71 | 25.71 | $ 25.74 |
Options exercisable, end of period (in dollars per share) | $ 25.71 | $ 25.71 | |
Weighted Average Remaining Contractual Term (Yrs) [Abstract] | |||
Options outstanding | 2 years 7 months 6 days | 3 years 1 month 28 days | |
Options exercisable | 2 years 7 months 6 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Options outstanding, beginning of period | $ 3,027,000 | ||
Granted | 0 | ||
Exercised | 211,000 | ||
Forfeited or expired | 0 | ||
Options outstanding, end of period | $ 3,505,000 | 3,505,000 | $ 3,027,000 |
Options exercisable, end of period | $ 3,505,000 | $ 3,505,000 | |
Nonvested Shares Outstanding, Number of Shares [Roll Forward] | |||
Nonvested shares outstanding, beginning of period (in shares) | 44,002 | ||
Granted (in shares) | 6,710 | ||
Vested (in shares) | (19,518) | ||
Forfeited or expired (in shares) | (727) | ||
Nonvested shares outstanding, end of period (in shares) | 30,467 | 30,467 | 44,002 |
Nonvested Shares Outstanding, Weighted Average Fair Value at Grant [Roll Forward] | |||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ 40.80 | ||
Granted (in dollars per share) | 29.69 | ||
Vested (in dollars per share) | 40.77 | ||
Forfeited or expired (in dollars per share) | 41.77 | ||
Nonvested shares outstanding, end of period (in dollars per share) | $ 38.36 | $ 38.36 | $ 40.80 |
Stock based compensation expense not yet recognized in income | $ 278,978 | $ 278,978 | |
Weighted average remaining period for unrecognized stock based compensation | 1 year 8 months 26 days |
SEGMENT INFORMATION (Details) $ in Thousands |
3 Months Ended | 6 Months Ended | |||
---|---|---|---|---|---|
Mar. 31, 2016
USD ($)
|
Mar. 31, 2015
USD ($)
|
Mar. 31, 2016
USD ($)
Segment
|
Mar. 31, 2015
USD ($)
|
Sep. 30, 2015
USD ($)
|
|
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 3 | ||||
Segment data [Abstract] | |||||
Interest income | $ 20,629 | $ 15,759 | $ 38,904 | $ 29,991 | |
Interest expense | 691 | 473 | 1,411 | 1,134 | |
Net interest income (expense) | 19,938 | 15,286 | 37,493 | 28,857 | |
Provision (recovery) for loan losses | 1,173 | 593 | 1,959 | 641 | |
Non-interest income | 40,901 | 14,970 | 57,735 | 27,644 | |
Non-interest expense | 41,790 | 23,420 | 71,798 | 45,833 | |
Income (loss) before tax | 17,876 | 6,243 | 21,471 | 10,027 | |
Total assets | 3,071,742 | 2,275,092 | 3,071,742 | 2,275,092 | $ 2,529,705 |
Total deposits | 2,220,761 | 1,730,672 | 2,220,761 | 1,730,672 | $ 1,657,534 |
Reportable Segments [Member] | Payments [Member] | |||||
Segment data [Abstract] | |||||
Interest income | 2,633 | 2,079 | 4,597 | 3,646 | |
Interest expense | 54 | 46 | 94 | 91 | |
Net interest income (expense) | 2,579 | 2,033 | 4,503 | 3,555 | |
Provision (recovery) for loan losses | 953 | 0 | 1,033 | 0 | |
Non-interest income | 39,591 | 13,608 | 54,943 | 26,660 | |
Non-interest expense | 25,720 | 11,488 | 41,737 | 23,161 | |
Income (loss) before tax | 15,497 | 4,153 | 16,676 | 7,054 | |
Total assets | 53,020 | 39,498 | 53,020 | 39,498 | |
Total deposits | 2,014,548 | 1,533,716 | 2,014,548 | 1,533,716 | |
Reportable Segments [Member] | Banking [Member] | |||||
Segment data [Abstract] | |||||
Interest income | 8,949 | 8,009 | 17,800 | 14,950 | |
Interest expense | 316 | 384 | 569 | 663 | |
Net interest income (expense) | 8,633 | 7,625 | 17,231 | 14,287 | |
Provision (recovery) for loan losses | 220 | 593 | 926 | 641 | |
Non-interest income | 899 | 1,048 | 1,955 | 1,627 | |
Non-interest expense | 5,218 | 4,917 | 10,646 | 8,610 | |
Income (loss) before tax | 4,094 | 3,163 | 7,614 | 6,663 | |
Total assets | 781,380 | 636,749 | 781,380 | 636,749 | |
Total deposits | 206,213 | 196,920 | 206,213 | 196,920 | |
Reportable Segments [Member] | Corporate Services/Other [Member] | |||||
Segment data [Abstract] | |||||
Interest income | 9,047 | 5,671 | 16,507 | 11,395 | |
Interest expense | 321 | 43 | 748 | 380 | |
Net interest income (expense) | 8,726 | 5,628 | 15,759 | 11,015 | |
Provision (recovery) for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income | 411 | 314 | 837 | (643) | |
Non-interest expense | 10,852 | 7,015 | 19,415 | 14,062 | |
Income (loss) before tax | (1,715) | (1,073) | (2,819) | (3,690) | |
Total assets | 2,237,342 | 1,598,845 | 2,237,342 | 1,598,845 | |
Total deposits | $ 0 | $ 36 | $ 0 | $ 36 |
FAIR VALUE MEASUREMENTS, Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Sep. 30, 2015 |
---|---|---|
Available-for-sale Securities [Abstract] | ||
Total debt securities | $ 688,952 | $ 576,583 |
Total available for sale securities | 1,555,104 | 1,256,087 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 493,350 | 346,847 |
Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 1,106 | 914 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 1,553,998 | 1,255,173 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 493,350 | 346,847 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 3 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 0 | 0 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 783,778 | 707,774 |
Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 1,187 | 2,543 |
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 141,183 | 121,385 |
Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 353,769 | 314,372 |
Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 38,364 | 40,003 |
Level 3 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 35,341 | 33,504 |
Level 3 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 27,085 | 23,245 |
Recurring [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 11,948 | 13,944 |
Small business administration securities | 83,697 | 56,056 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 703,235 | 608,590 |
Asset-backed securities | 66,166 | |
Mortgage-backed securities | 688,952 | 576,583 |
Total debt securities | 1,553,998 | 1,255,173 |
Common equities and mutual funds | 1,106 | 914 |
Total available for sale securities | 1,555,104 | 1,256,087 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 20,983 | 19,413 |
Non-bank qualified obligations of states and political subdivisions | 403,959 | 261,330 |
Asset-backed securities | 0 | |
Mortgage-backed securities | 68,408 | 66,104 |
Total debt securities | 493,350 | 346,847 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 493,350 | 346,847 |
Recurring [Member] | Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 0 | 0 |
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-backed securities | 0 | |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 1,106 | 914 |
Total available for sale securities | 1,106 | 914 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 0 | 0 |
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-backed securities | 0 | |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 11,948 | 13,944 |
Small business administration securities | 83,697 | 56,056 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 703,235 | 608,590 |
Asset-backed securities | 66,166 | |
Mortgage-backed securities | 688,952 | 576,583 |
Total debt securities | 1,553,998 | 1,255,173 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 1,553,998 | 1,255,173 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 20,983 | 19,413 |
Non-bank qualified obligations of states and political subdivisions | 403,959 | 261,330 |
Asset-backed securities | 0 | |
Mortgage-backed securities | 68,408 | 66,104 |
Total debt securities | 493,350 | 346,847 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 493,350 | 346,847 |
Recurring [Member] | Level 3 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 0 | 0 |
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-backed securities | 0 | |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 0 | 0 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 0 | 0 |
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-backed securities | 0 | |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 0 | 0 |
Nonrecurring [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 1,187 | 2,543 |
Nonrecurring [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 612 | 663 |
Nonrecurring [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 575 | 1,880 |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 1,187 | 2,543 |
Nonrecurring [Member] | Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 612 | 663 |
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | $ 575 | $ 1,880 |
FAIR VALUE MEASUREMENTS, Quantitative Information (Details) - USD ($) $ in Thousands |
6 Months Ended | 12 Months Ended | ||
---|---|---|---|---|
Mar. 31, 2016 |
Sep. 30, 2015 |
|||
Minimum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Range of estimated selling cost | 4.00% | 4.00% | ||
Maximum [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Range of estimated selling cost | 10.00% | 10.00% | ||
Level 3 [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair value | $ 783,778 | $ 707,774 | ||
Impaired Loans, Net [Member] | Level 3 [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Fair value | $ 1,187 | $ 2,543 | ||
Impaired Loans, Net [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | ||||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||||
Valuation techniques | [1] | Appraised values | Appraised values | |
|
FAIR VALUE MEASUREMENTS, Balance Sheet Grouping (Details) - USD ($) $ in Thousands |
Mar. 31, 2016 |
Sep. 30, 2015 |
---|---|---|
Financial assets [Abstract] | ||
Securities available for sale | $ 1,555,104 | $ 1,256,087 |
Securities held to maturity | 493,350 | 346,847 |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 39,480 | 27,658 |
Securities available for sale | 1,106 | 914 |
Securities held to maturity | 0 | 0 |
Total securities | 1,106 | 914 |
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 15,783 | 13,352 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,013,783 | 1,369,672 |
Interest bearing demand deposits, savings, and money markets | 155,177 | 115,204 |
Certificates of deposit | 0 | 0 |
Total deposits | 2,168,959 | 1,484,876 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 167 | 272 |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,553,998 | 1,255,173 |
Securities held to maturity | 493,350 | 346,847 |
Total securities | 2,047,348 | 1,602,020 |
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 22,431 | 24,410 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 51,585 | 91,304 |
Total deposits | 51,585 | 91,304 |
Advances from Federal Home Loan Bank | 8,335 | 8,630 |
Federal fund purchased | 465,000 | 540,000 |
Securities sold under agreements to repurchase | 1,626 | 4,007 |
Subordinated debentures | 10,430 | 10,416 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Total securities | 0 | 0 |
Loans receivable [Abstract] | ||
Total loans receivable | 783,778 | 707,774 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 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 |
Total deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 39,480 | 27,658 |
Securities available for sale | 1,555,104 | 1,256,087 |
Securities held to maturity | 485,768 | 345,744 |
Total securities | 2,040,871 | 1,601,831 |
Loans receivable [Abstract] | ||
Total loans receivable | 785,404 | 713,087 |
Federal Home Loan Bank stock | 22,431 | 24,410 |
Accrued interest receivable | 15,783 | 13,352 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,013,783 | 1,449,101 |
Interest bearing demand deposits, savings, and money markets | 155,177 | 117,262 |
Certificates of deposit | 51,801 | 91,171 |
Total deposits | 2,220,761 | 1,657,534 |
Advances from Federal Home Loan Bank | 7,000 | 7,000 |
Federal fund purchased | 465,000 | 540,000 |
Securities sold under agreements to repurchase | 1,626 | 4,007 |
Subordinated debentures | 10,310 | 10,310 |
Accrued interest payable | 167 | 272 |
Estimated Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 39,480 | 27,658 |
Securities available for sale | 1,555,104 | 1,256,087 |
Securities held to maturity | 493,350 | 346,847 |
Total securities | 2,048,454 | 1,602,934 |
Loans receivable [Abstract] | ||
Total loans receivable | 783,778 | 707,774 |
Federal Home Loan Bank stock | 22,431 | 24,410 |
Accrued interest receivable | 15,783 | 13,352 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,013,783 | 1,369,672 |
Interest bearing demand deposits, savings, and money markets | 155,177 | 115,204 |
Certificates of deposit | 51,585 | 91,304 |
Total deposits | 2,220,544 | 1,576,180 |
Advances from Federal Home Loan Bank | 8,335 | 8,630 |
Federal fund purchased | 465,000 | 540,000 |
Securities sold under agreements to repurchase | 1,626 | 4,007 |
Subordinated debentures | 10,430 | 10,416 |
Accrued interest payable | 167 | 272 |
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 141,183 | 121,385 |
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 140,000 | 125,021 |
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 141,183 | 121,385 |
Commercial and Multi-family Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial and Multi-family Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial and Multi-family Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 353,769 | 314,372 |
Commercial and Multi-family Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 354,794 | 310,199 |
Commercial and Multi-family Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 353,769 | 314,372 |
Agricultural Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 63,960 | 66,682 |
Agricultural Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 64,111 | 64,316 |
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 63,960 | 66,682 |
Consumer Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Consumer Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Consumer Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,341 | 33,504 |
Consumer Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,937 | 33,527 |
Consumer Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,341 | 33,504 |
Commercial Operating Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Operating Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Operating Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 27,085 | 23,245 |
Commercial Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 26,909 | 29,893 |
Commercial Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 27,085 | 23,245 |
Agricultural Operating Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 38,364 | 40,003 |
Agricultural Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 42,081 | 43,626 |
Agricultural Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 38,364 | 40,003 |
Premium Finance Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Premium Finance Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Premium Finance Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 124,075 | 108,583 |
Premium Finance Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 121,572 | 106,505 |
Premium Finance Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | $ 124,075 | $ 108,583 |
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands |
3 Months Ended | 6 Months Ended | |||||
---|---|---|---|---|---|---|---|
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
Mar. 31, 2015 |
Mar. 31, 2016 |
Sep. 08, 2015 |
Dec. 02, 2014 |
|
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 36,928 | $ 0 | $ 36,928 | $ 11,578 | $ 36,928 | ||
Impairment of intangible assets | 0 | 0 | |||||
Amortizable intangible assets [Abstract] | |||||||
Balance, beginning of period | 36,928 | 0 | 36,928 | ||||
Acquisitions during the period | 0 | 11,578 | |||||
Write-offs during the period | 0 | 0 | |||||
Balance, end of period | 36,928 | 11,578 | 36,928 | 11,578 | |||
Intangible Assets [Roll Forward] | |||||||
Balance, beginning of period | 33,577 | 2,588 | |||||
Acquisitions during the period | 123 | 8,434 | |||||
Amortization during the period | (2,428) | (555) | |||||
Write-offs during the period | 0 | 0 | |||||
Balance, end of period | 31,272 | 10,467 | 31,272 | 10,467 | |||
AFS/IBEX Financial Services Inc [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 11,600 | ||||||
Refund Advantage Financial Services Inc [Member] | |||||||
Finite-Lived Intangible Assets [Line Items] | |||||||
Goodwill | $ 25,400 | ||||||
Trademark [Member] | |||||||
Intangible Assets [Roll Forward] | |||||||
Balance, beginning of period | 5,439 | 0 | |||||
Acquisitions during the period | 0 | 540 | |||||
Amortization during the period | (144) | (12) | |||||
Write-offs during the period | 0 | 0 | |||||
Balance, end of period | 5,295 | 528 | $ 5,295 | 528 | |||
Trademark [Member] | AFS/IBEX Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 540 | ||||||
Book Amortization Period | 15 years | ||||||
Method | Straight Line | ||||||
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 4,950 | ||||||
Book Amortization Period | 15 years | ||||||
Method | Straight Line | ||||||
Non-Compete [Member] | |||||||
Intangible Assets [Roll Forward] | |||||||
Balance, beginning of period | 227 | 0 | |||||
Acquisitions during the period | $ 0 | 260 | |||||
Amortization during the period | (50) | (29) | |||||
Write-offs during the period | 0 | 0 | |||||
Balance, end of period | 177 | 231 | $ 177 | 231 | |||
Non-Compete [Member] | AFS/IBEX Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 260 | ||||||
Book Amortization Period | 3 years | ||||||
Method | Straight Line | ||||||
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 40 | ||||||
Book Amortization Period | 3 years | ||||||
Method | Straight Line | ||||||
Customer Relationships [Member] | |||||||
Intangible Assets [Roll Forward] | |||||||
Balance, beginning of period | 24,811 | 0 | |||||
Acquisitions during the period | $ 0 | 7,240 | |||||
Amortization during the period | (2,127) | (394) | |||||
Write-offs during the period | 0 | 0 | |||||
Balance, end of period | $ 22,684 | 6,846 | $ 22,684 | 6,846 | |||
Customer Relationships [Member] | AFS/IBEX Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 7,240 | ||||||
Book Amortization Period | 30 years | ||||||
Method | Accelerated | ||||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 18,800 | ||||||
Method | Accelerated | ||||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Book Amortization Period | 12 years | ||||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Book Amortization Period | 20 years | ||||||
Other [Member] | |||||||
Intangible Assets [Roll Forward] | |||||||
Balance, beginning of period | $ 3,100 | 2,588 | |||||
Acquisitions during the period | $ 123 | 394 | |||||
Amortization during the period | (107) | (120) | |||||
Write-offs during the period | 0 | 0 | |||||
Balance, end of period | $ 3,116 | $ 2,862 | $ 3,116 | $ 2,862 | |||
Other [Member] | AFS/IBEX Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | 173 | ||||||
Method | Straight Line | ||||||
Other [Member] | Refund Advantage Financial Services Inc [Member] | |||||||
Amortizable intangible assets [Abstract] | |||||||
Amount | $ 329 | ||||||
Method | Straight Line |
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