Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Mar. 31, 2017 | May 01, 2017 | |
Document Information [Line Items] | ||
Entity Registrant Name | META FINANCIAL GROUP INC | |
Entity Central Index Key | 907,471 | |
Current Fiscal Year End Date | --09-30 | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 | |
Common Class A [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 9,349,989 | |
Nonvoting Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) | Mar. 31, 2017 | Sep. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 67,293,000 | $ 773,830,000 |
Investment securities available for sale | 1,184,440,000 | 910,309,000 |
Mortgage-backed securities available for sale | 642,833,000 | 558,940,000 |
Investment securities held to maturity | 474,306,000 | 486,095,000 |
Mortgage-backed securities held to maturity | 122,497,000 | 133,758,000 |
Loans receivable | 1,151,192,000 | 925,105,000 |
Allowance for loan losses | (14,602,000) | (5,635,000) |
Federal Home Loan Bank Stock, at cost | 25,043,000 | 47,512,000 |
Accrued interest receivable | 20,902,000 | 17,199,000 |
Premises, furniture, and equipment, net | 20,019,000 | 18,626,000 |
Bank-owned life insurance | 58,378,000 | 57,486,000 |
Foreclosed real estate and repossessed assets | 0 | 76,000 |
Goodwill | 98,723,000 | 36,928,000 |
Intangible assets | 66,633,000 | 28,921,000 |
Prepaid assets | 34,596,000 | 9,443,000 |
Deferred taxes | 10,589,000 | 0 |
Meta Payment Systems accounts receivable | 6,005,000 | 6,334,000 |
Other assets | 16,749,000 | 1,492,000 |
Total assets | 3,985,596,000 | 4,006,419,000 |
LIABILITIES | ||
Non-interest-bearing checking | 2,637,167,000 | 2,167,522,000 |
Interest-bearing checking | 44,264,000 | 38,077,000 |
Savings deposits | 65,367,000 | 50,742,000 |
Money market deposits | 42,340,000 | 47,749,000 |
Time certificates of deposit | 61,170,000 | 125,992,000 |
Wholesale deposits | 21,923,000 | 0 |
Total deposits | 2,872,231,000 | 2,430,082,000 |
Short-term debt | 494,919,000 | 1,095,118,000 |
Long-term debt | 92,497,000 | 92,460,000 |
Accrued interest payable | 722,000 | 875,000 |
Deferred taxes | 0 | 4,600,000 |
Accrued expenses and other liabilities | 113,479,000 | 48,309,000 |
Total liabilities | 3,573,848,000 | 3,671,444,000 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at March 31, 2017 and September 30, 2016, respectively | 0 | 0 |
Additional paid-in capital | 253,473,000 | 184,780,000 |
Retained earnings | 158,167,000 | 127,190,000 |
Accumulated other comprehensive income | 14,000 | 22,920,000 |
Total stockholders’ equity | 411,748,000 | 334,975,000 |
Total liabilities and stockholders’ equity | 3,985,596,000 | 4,006,419,000 |
Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 94,000 | 85,000 |
Nonvoting Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - $ / shares | Mar. 31, 2017 | Sep. 30, 2016 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 15,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 9,349,989 | 8,523,641 |
Common stock, shares outstanding (in shares) | 9,349,989 | 8,523,641 |
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 Stateme4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Interest and dividend income: | ||||
Loans receivable, including fees | $ 12,773 | $ 8,548 | $ 23,451 | $ 16,867 |
Mortgage-backed securities | 4,481 | 4,768 | 7,801 | 8,481 |
Other investments | 10,464 | 7,313 | 19,041 | 13,556 |
Total interest and dividend income | 27,718 | 20,629 | 50,293 | 38,904 |
Interest expense: | ||||
Deposits | 2,184 | 135 | 3,122 | 298 |
FHLB advances and other borrowings | 1,568 | 556 | 3,372 | 1,113 |
Total interest expense | 3,752 | 691 | 6,494 | 1,411 |
Net interest income | 23,966 | 19,938 | 43,799 | 37,493 |
Provision for loan losses | 8,649 | 1,173 | 9,492 | 1,959 |
Net interest income after provision for loan losses | 15,317 | 18,765 | 34,307 | 35,534 |
Non-interest income: | ||||
Tax product fees | 63,606 | 21,071 | 64,231 | 21,206 |
Card fees | 26,547 | 18,579 | 44,961 | 33,835 |
Loan fees | 1,182 | 674 | 2,052 | 1,467 |
Bank-owned life insurance | 444 | 380 | 892 | 754 |
Deposit fees | 168 | 151 | 318 | 313 |
Gain (loss) on sale of securities available for sale, net (includes ($144) and $29 reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended March 31, 2017 and 2016, respectively and ($1,378) and $50 for the six months ended March 31, 2017 and 2016, respectively) | (144) | 29 | (1,378) | 50 |
Gain on foreclosed real estate | 7 | 0 | 7 | 0 |
Other income | 360 | 17 | 436 | 110 |
Total non-interest income | 92,170 | 40,901 | 111,519 | 57,735 |
Non-interest expense: | ||||
Compensation and benefits | 26,766 | 17,110 | 44,616 | 31,765 |
Tax product | 13,318 | 8,238 | 13,396 | 8,256 |
Card processing | 7,043 | 6,017 | 12,622 | 11,251 |
Occupancy and equipment | 4,191 | 3,659 | 8,168 | 7,038 |
Legal and consulting | 1,505 | 859 | 4,228 | 1,990 |
Marketing | 610 | 539 | 1,080 | 1,041 |
Data processing | 392 | 357 | 755 | 698 |
Amortization expense | 7,082 | 1,215 | 8,607 | 2,428 |
Other expense | 6,039 | 3,796 | 10,227 | 7,331 |
Total non-interest expense | 66,946 | 41,790 | 103,699 | 71,798 |
Income before income tax expense | 40,541 | 17,876 | 42,127 | 21,471 |
Income tax expense (includes ($54) and $11 income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the three months ended March 31, 2017 and 2016, respectively and ($517) and $18 for the six months ended March 31, 2017 and 2016, respectively) | 8,399 | 3,593 | 8,741 | 3,130 |
Net income | $ 32,142 | $ 14,283 | $ 33,386 | $ 18,341 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 3.44 | $ 1.68 | $ 3.65 | $ 2.19 |
Diluted (in dollars per share) | $ 3.42 | $ 1.67 | $ 3.63 | $ 2.17 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Non-interest income: | ||||
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ (144) | $ 29 | $ (1,378) | $ 50 |
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) | $ (54) | $ 11 | $ (517) | $ 18 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 32,142 | $ 14,283 | $ 33,386 | $ 18,341 |
Other comprehensive income (loss): | ||||
Change in net unrealized gain (loss) on securities | 7,969 | 16,216 | (37,300) | 18,837 |
Losses (gains) realized in net income | 144 | (29) | 1,378 | (50) |
Total available for sale adjustment | 8,113 | 16,187 | (35,922) | 18,787 |
LESS: Deferred income tax effect | 3,076 | 5,938 | (13,016) | 6,913 |
Total other comprehensive income (loss) | 5,037 | 10,249 | (22,906) | 11,874 |
Total comprehensive income | $ 37,179 | $ 24,532 | $ 10,480 | $ 30,215 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Balance at Sep. 30, 2015 | $ 271,335 | $ 82 | $ 170,749 | $ 98,359 | $ 2,455 | $ (310) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock | (2,174) | (2,174) | ||||
Issuance of common shares from the sales of equity securities (in shares) | 2 | |||||
Issuance of common shares from the sales of equity securities | 11,522 | 11,520 | ||||
Issuance of common shares due to issuance of stock options, restricted stock and ESOP | 1,723 | $ 1 | 1,412 | 310 | ||
Stock compensation | 666 | 666 | ||||
Net change in unrealized gains (losses) on securities, net of income taxes | 11,874 | 11,874 | ||||
Net income | 18,341 | 18,341 | ||||
Balance at Mar. 31, 2016 | 313,287 | 85 | 184,347 | 114,526 | 14,329 | 0 |
Balance at Sep. 30, 2016 | 334,975 | 85 | 184,780 | 127,190 | 22,920 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock | (2,409) | (2,409) | ||||
Issuance of common shares due to issuance of stock options, restricted stock and ESOP | 6,771 | $ 4 | 6,767 | 0 | ||
Stock compensation | 493 | 493 | ||||
Issuance of common shares due to acquisition (in shares) | 5 | |||||
Issuance of common shares due to acquisitions | 37,296 | 37,291 | ||||
Contingent consideration equity earnout due to SCS acquisition | 24,142 | 24,142 | ||||
Net change in unrealized gains (losses) on securities, net of income taxes | (22,906) | (22,906) | ||||
Net income | 33,386 | 33,386 | ||||
Balance at Mar. 31, 2017 | $ 411,748 | $ 94 | $ 253,473 | $ 158,167 | $ 14 | $ 0 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared on common stock (in dollars per share) | $ 0.26 | $ 0.26 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 33,386 | $ 18,341 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion, net | 24,843 | 17,569 |
Provision for loan losses | 9,492 | 1,959 |
(Recovery) for deferred taxes | (2,172) | (703) |
(Gain) loss on other assets | (14) | 10 |
(Gain) on foreclosed real estate | (7) | 0 |
(Gain) loss on sale of securities available for sale, net | 1,378 | (50) |
Capital lease obligations interest expense | 61 | (63) |
Net change in accrued interest receivable | (3,703) | (2,431) |
Originations of loans held for sale | (685,934) | 0 |
Proceeds from sales of loans held for sale | 685,934 | 0 |
Change in bank-owned life insurance value | (892) | (754) |
Net change in other assets | (40,079) | (6,092) |
Net change in accrued interest payable | (153) | (105) |
Net change in accrued expenses and other liabilities | 47,872 | 14,454 |
Net cash provided by (used in) operating activities | 70,012 | 42,135 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | (577,967) | (454,450) |
Proceeds from sales of securities available-for-sale | 113,647 | 100,298 |
Proceeds from maturities and principal repayments of securities available-for-sale | 59,383 | 52,991 |
Purchase of securities held to maturity | (931) | (147,906) |
Proceeds from maturities and principal repayments of securities held to maturity | 21,112 | 6,059 |
Purchase of bank owned life insurance | 0 | (10,000) |
Purchase of student loan portfolio | (136,172) | 0 |
Proceeds from loan sales | 11,205 | 88 |
Net change in loans receivable | (102,576) | (73,243) |
Proceeds from sales of foreclosed real estate | 83 | 0 |
Net cash paid for acquisitions | (29,425) | 0 |
Federal Home Loan Bank stock purchases | (243,971) | (403,981) |
Federal Home Loan Bank stock redemptions | 266,440 | 405,960 |
Proceeds from the sale of premises and equipment | 58 | 13 |
Purchase of premises and equipment | (4,210) | (3,663) |
Net cash provided by (used in) investing activities | (623,324) | (527,834) |
Cash flows from financing activities: | ||
Net change in checking, savings, and money market deposits | 485,048 | 602,597 |
Net change in time deposits | (64,822) | (39,370) |
Net change in wholesale deposits | 21,923 | 0 |
Net change in FHLB and other borrowings | (100,000) | 0 |
Net change in federal funds | (499,000) | (75,000) |
Net change in securities sold under agreements to repurchase | (1,191) | (2,381) |
Principal payments on capital lease obligations | (38) | (62) |
Cash dividends paid | (2,409) | (2,174) |
Stock compensation | 493 | 666 |
Proceeds from issuance of common stock | 6,771 | 13,245 |
Net cash provided by (used in) financing activities | (153,225) | 497,521 |
Net change in cash and cash equivalents | (706,537) | 11,822 |
Cash and cash equivalents at beginning of period | 773,830 | 27,658 |
Cash and cash equivalents at end of period | 67,293 | 39,480 |
Cash paid during the period for: | ||
Interest | 6,341 | 1,516 |
Income taxes | 2,371 | 1,789 |
Franchise taxes | 95 | 39 |
Other taxes | 260 | 58 |
Supplemental schedule of non-cash investing activities: | ||
Stock issued for acquisitions | (37,296) | 0 |
Contingent consideration - cash | (17,252) | 0 |
Contingent consideration - equity | (24,142) | 0 |
Sale of available-for-sale securities accrued | $ 0 | $ 10,499 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Mar. 31, 2017 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2016 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, 2016. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted. The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments), that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and six month periods ended March 31, 2017 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2017 . The Company reclassified insignificant electronic return originator ("ERO") and taxpayer advance fee income and related expenses during the first quarter of fiscal year 2017 from loan fees and other income to tax product fees and other expenses to tax product expense. Prior period amounts have also been reclassified. As of March 31, 2017, certain insignificant adjustments to previously reported Earnings Per Share ("EPS") have been made to correctly reflect the effect of participating securities on basic and diluted EPS calculations in accordance with ASC 260. These changes were immaterial to the overall EPS calculation. |
ACQUISITIONS
ACQUISITIONS | 6 Months Ended |
Mar. 31, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS EPS Financial On November 1, 2016, the Company, through its wholly-owned subsidiary, MetaBank, completed the acquisition of substantially all of the assets and certain liabilities of EPS Financial, LLC ("EPS") from privately-held Drake Enterprises, Ltd. ("Drake"). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. EPS is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 ERO's nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services. Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the November 1, 2016 tangible book value of EPS, included the payment of $21.9 million in cash, after adjustments, and 369,179 shares of Meta Financial common stock. The Company acquired assets with approximate fair values of $17.9 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and $0.1 million of other assets, resulting in $30.4 million of goodwill. The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the consolidated statement of financial condition as of November 1, 2016. As of November 1, 2016 (Dollars in Thousands) Fair value of consideration paid Cash $ 21,877 Stock issued 26,507 Total consideration paid 48,384 Fair value of assets acquired Intangible assets 17,930 Other assets 79 Total assets 18,009 Fair value of net assets acquired 18,009 Goodwill resulting from acquisition $ 30,375 The Company included the financial results of EPS in its consolidated financial statements subsequent to the acquisition date. The EPS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. The Company recognized goodwill of $30.4 million , which is calculated as the excess of both the consideration exchanged and the liabilities assumed, which were negligible, as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 12 to the Condensed Consolidated Financial Statements for further information on goodwill. The Company recognized $0.5 million of pre-tax transaction related expenses during the first six months of fiscal year 2017. The transaction expenses are reflected on the consolidated statement of operations primarily under legal and consulting. SCS On December 14, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and specified liabilities of Specialty Consumer Services LP ("SCS"). The assets acquired by MetaBank in the SCS acquisition include the SCS trade name, propriety underwriting model and loan management system and other assets. SCS primarily provides consumer tax advance and other consumer credit services through its loan management services and other financial products. Under the terms of the purchase agreement, the aggregate purchase price paid at closing, which was based upon the December 14, 2016 tangible book value of SCS, was approximately $7.5 million in cash and 113,328 shares of Meta Financial common stock. In addition, cash contingent consideration of up to $17.3 million (estimated fair value), payable in cash, and equity contingent consideration of up to 264,431 shares of Meta Financial common stock, will be paid if certain performance benchmarks are achieved subsequent to closing (described more fully below). The Company acquired assets with approximate fair values of $28.3 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and negligible other assets, resulting in goodwill of $31.4 million . All amounts are at estimated fair market values. Subject to the equity earn-out terms of the purchase agreement, SCS will be eligible to receive up to an aggregate of 264,431 shares of Meta Financial common stock within 20 days after the applicable equity earn-out statement is deemed final if certain targets are achieved. The equity earn-out measurements are as follows; 1) if, as of an equity earn-out measurement date, the anticipated 2018 measured gross profit meets or exceeds the statement amount, MetaBank will deliver to SCS a stated number of shares of Meta common stock; 2) if, as of an equity earn-out measurement date, the aggregate anticipated loan volume under all 2018 eligible contracts is greater than or equal to the agreed upon volume amount, then MetaBank will deliver to SCS a stated number of shares of Meta common stock; and 3) if, as of an equity earn-out measurement date, each agreement specified in the contract is in effect and each such agreement is not amended or modified as of such time (except as approved in writing by the President of MetaBank, in his or her sole discretion), then MetaBank will deliver to SCS a stated number of shares of Meta common stock. None of the equity earn-out payments are contingent on the achievement of any of the other equity earn-out targets. Subject to the cash earn-out terms of the purchase agreement, MetaBank agreed to pay to SCS an amount equal to 100% of the 2017 measured business gross profit up to a maximum of $17.5 million within 20 days after the date on which each determination of the cash earn-out payment is deemed final. The Company included the financial results of SCS in its consolidated financial statements subsequent to the acquisition date. The fair value of the liability for the cash contingent consideration was approximately $17.3 million and was included in other liabilities in the Company's consolidated statement of financial condition. The fair value of the equity contingent consideration was approximately $24.1 million at closing and was included in additional paid-in capital in the Company's consolidated statement of financial condition. The respective fair values of the liability and equity were estimated using an option based income valuation method with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in the FASB's Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included our probability assessments of the expected future cash flows related to our acquisition of SCS during the earn-out period. The following table represents the approximate fair value of assets acquired and liabilities recorded of SCS on the consolidated statement of financial condition as of December 14, 2016. As of December 14, 2016 (Dollars in Thousands) Fair value of transaction consideration Cash 7,548 Stock issued 10,789 Paid consideration 18,337 Contingent consideration - cash 17,252 Contingent consideration - equity 24,142 Contingent consideration payable 41,394 Total consideration paid 59,731 Fair value of assets acquired Intangible assets 28,310 Other assets 2 Total assets 28,312 Fair value of net assets acquired 28,312 Goodwill resulting from acquisition 31,419 The SCS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. Upon receipt of final fair value estimates on certain assets, liabilities, and contingent considerations, which must be within one year of the acquisition date, the Company made final adjustments to the purchase price allocation and retrospectively adjusted the recorded goodwill. The Company recorded a contingent liability in the amount of $17.3 million to reflect the fair market value of the potential cash earn-out payment. The Company recognized goodwill of $31.4 million , which is calculated as the excess of both the adjusted consideration exchanged and the liabilities recorded as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 12 to the Condensed Consolidated Financial Statements for further information on goodwill. The Company recognized $0.6 million of pre-tax transaction related expenses during the first six months of fiscal year 2017. The transaction expenses are reflected on the consolidated statement of operations primarily under legal and consulting. |
CREDIT DISCLOSURES
CREDIT DISCLOSURES | 6 Months Ended |
Mar. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
CREDIT DISCLOSURES | 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. Homogeneous loan populations are collectively evaluated for impairment. These loan populations may include premium finance loans, residential first mortgage loans secured by one-to-four family residences, residential construction loans, home equity and second mortgage loans, and tax product loans. Commercial and agricultural loans as well as mortgage loans secured by other properties are monitored regularly by the Bank given the larger balances. When analysis of the borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business is not adequate to meet its debt service requirements, the individual loan or loan relationship 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, 2017 and September 30, 2016 were as follows: March 31, 2017 September 30, 2016 (Dollars in Thousands) 1-4 Family Real Estate $ 178,310 $ 162,298 Commercial and Multi-Family Real Estate 473,058 422,932 Agricultural Real Estate 62,422 63,612 Consumer 182,156 37,094 Commercial Operating 33,894 31,271 Agricultural Operating 35,493 37,083 Premium Finance 187,049 171,604 Total Loans Receivable 1,152,382 925,894 Allowance for Loan Losses (14,602 ) (5,635 ) Net Deferred Loan Origination Fees (1,190 ) (789 ) Total Loans Receivable, Net $ 1,136,590 $ 919,470 Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and six months ended March 31, 2017 and 2016 was as follows: 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium Unallocated Total (Dollars in Thousands) Three Months Ended March 31, 2017 Allowance for loan losses: Beginning balance $ 654 $ 1,912 $ 476 $ 47 $ 813 $ 1,341 $ 594 $ 578 $ 6,415 Provision (recovery) for loan losses (358 ) (170 ) 1,048 7,658 304 8 115 43 8,648 Charge offs — — — — (350 ) — (140 ) — (490 ) Recoveries — — — 1 — — 28 — 29 Ending balance $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Six Months Ended March 31, 2017 Allowance for loan losses: Beginning balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Provision (recovery) for loan (358 ) (456 ) 1,382 7,631 995 4 226 68 9,492 Charge offs — — — — (350 ) — (259 ) — (609 ) Recoveries — — — 24 5 13 42 — 84 Ending balance $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Ending balance: individually evaluated for impairment 12 — — — 53 — — — 65 Ending balance: collectively evaluated for impairment 284 1,742 1,524 7,706 714 1,349 597 621 14,537 Total $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Loans: Ending balance: individually 248 1,144 582 — 302 1,072 — — 3,348 Ending balance: collectively 178,062 471,914 61,840 182,156 33,592 34,421 187,049 — 1,149,034 Total $ 178,310 $ 473,058 $ 62,422 $ 182,156 $ 33,894 $ 35,493 $ 187,049 $ — $ 1,152,382 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium 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 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 — 40 — — — 2,846 — — 2,886 Ending balance: collectively 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 114 1,091 — — 6 3,421 — — 4,632 Ending balance: collectively 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 Federal regulations promulgated by the Company's primary federal regulator, the Office of the Comptroller of the Currency (the "OCC"), provide for the classification of loans and other assets such as debt and equity securities. The loan classification and risk rating definitions for the Company and its wholly-owned subsidiary, MetaBank (the "Bank"), are generally 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. 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 Company's balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances. The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans 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 Company’s Tier 1 Capital plus the Allowance for Loan Losses. The asset classification of loans at March 31, 2017 and September 30, 2016 were as follows: March 31, 2017 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium Total (Dollars in Thousands) Pass $ 176,844 $ 471,748 $ 28,828 $ 182,156 $ 33,572 $ 18,893 $ 187,049 $ 1,099,090 Watch 537 72 — — 21 40 — 670 Special Mention 660 204 2,965 — — — — 3,829 Substandard 269 1,034 30,629 — 248 16,560 — 48,740 Doubtful — — — — 53 — — 53 $ 178,310 $ 473,058 $ 62,422 $ 182,156 $ 33,894 $ 35,493 $ 187,049 $ 1,152,382 September 30, 2016 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium Total (Dollars in Thousands) Pass $ 161,255 $ 421,577 $ 34,421 $ 37,094 $ 30,574 $ 19,669 $ 171,604 $ 876,194 Watch 200 72 2,934 — 184 4,625 — 8,015 Special Mention 666 962 25,675 — — 5,407 — 32,710 Substandard 177 321 582 — 513 7,382 — 8,975 Doubtful — — — — — — — — $ 162,298 $ 422,932 $ 63,612 $ 37,094 $ 31,271 $ 37,083 $ 171,604 $ 925,894 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. 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 standards, such as 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. 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. The Bank originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans and loans secured by savings deposits. The Bank also offers other secured and unsecured consumer loans and currently originates most of its consumer loans in its primary market area and surrounding areas. In addition, the Bank’s consumer lending portfolio includes a purchased student loan portfolio, along with consumer lending products offered through its payments segment. The Bank's consumer loan portfolio includes home equity loans and lines of credit. Substantially all of the Bank's home equity loans and lines of credit are secured by second mortgages on principal residences. The 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 Bank primarily originates automobile loans on a direct basis to the borrower, as opposed to indirect loans, which are made when the 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 of 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. The Bank’s purchased private student loan portfolio is a seasoned portfolio that is serviced by ReliaMax Lending Services, LLC and insured by ReliaMax Surety Company. All loans in this portfolio are floating rate and indexed to the three-month LIBOR plus various margins. Through its payments segment, the Bank strives to offer consumers innovative payment products, including credit products. Most credit products have fallen into the category of portfolio lending. Meta Payments Systems ("MPS") continues its development of new alternative portfolio lending products primarily to serve its customer base and to provide innovative lending solutions to the unbanked and under-banked segment. The payments segment also provides short-term consumer refund advance loans. Taxpayers are underwritten to determine eligibility for the unsecured advances. These consumer loans are interest and fee free to the consumer. Due to the nature of consumer advance loans, it typically takes no more than three e-file cycles, the period of time between scheduled IRS payments, from when the return is accepted to collect. In the event of default, MetaBank has no recourse with the tax consumer. Generally, when the refund advance loan becomes delinquent for 90 days or more, or when collection of principal becomes doubtful, the Company will charge off the loan balance. 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 ERO's. 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 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. Through its payments segment, the Bank also provides short-term ERO advance loans on a nation-wide basis. These loans are typically utilized to purchase tax preparation software and to prepare tax offices for the upcoming season. EROs go through an underwriting process to determine eligibility for the unsecured advances. Collection activities on ERO advances begin once the ERO begins to process refund transfers. Generally, when the ERO advance loan becomes delinquent for 90 days or more, or when collection of principal becomes doubtful, the Company will charge off the loan balance. Premium Finance Lending . Through its AFS/IBEX division, MetaBank provides short-term and 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 canceled, the unearned premium returned is typically sufficient to cover the loan balance, accrued interest and other charges due. Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60 - 210 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. 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 charge off the loan balance and any remaining interest and fees after applying any collection from the insurance company. Past due loans at March 31, 2017 and September 30, 2016 were as follows: March 31, 2017 30-59 Days 60-89 Days Greater Than Total Past Current Non-Accrual Total Loans (Dollars in Thousands) 1-4 Family Real Estate $ 42 $ 59 $ — $ 101 $ 178,097 $ 112 $ 178,310 Commercial and Multi-Family Real Estate 2,864 315 — 3,179 469,724 155 473,058 Agricultural Real Estate 35,058 — — 35,058 23,903 3,461 62,422 Consumer 8,009 1,329 284 9,622 172,534 — 182,156 Commercial Operating — — — — 33,747 147 33,894 Agricultural Operating — — — — 35,396 97 35,493 Premium Finance 1,029 954 723 2,706 184,343 — 187,049 Total $ 47,002 $ 2,657 $ 1,007 $ 50,666 $ 1,097,744 $ 3,972 $ 1,152,382 September 30, 2016 30-59 Days 60-89 Days Greater Than Total Past Current Non-Accrual Total Loans (Dollars in Thousands) 1-4 Family Real Estate $ — $ 30 $ — $ 30 $ 162,185 $ 83 $ 162,298 Commercial and Multi-Family Real Estate — — — — 422,932 — 422,932 Agricultural Real Estate — — — — 63,612 — 63,612 Consumer — — 53 53 37,041 — 37,094 Commercial Operating 151 354 — 505 30,766 — 31,271 Agricultural Operating — — — — 37,083 — 37,083 Premium Finance 1,398 275 965 2,638 168,966 — 171,604 Total $ 1,549 $ 659 $ 1,018 $ 3,226 $ 922,585 $ 83 $ 925,894 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, 2017 , there were no Premium Finance loans greater than 210 days past due. Total loans past due increased $47.5 million to $50.7 million at March 31, 2017 from $3.2 million at September 30, 2016. The majority of this increase was due to a $45.5 million rise in loans 30-59 days past due. The primary drivers of the increase in loans 30-59 days past due included three well collateralized agricultural loan relationships and the expected seasonal increase in refund advance loans. Impaired loans at March 31, 2017 and September 30, 2016 were as follows: Recorded Unpaid Principal Specific March 31, 2017 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 170 $ 170 $ — Commercial and Multi-Family Real Estate 1,144 1,144 — Agricultural Real Estate $ 582 $ 582 $ — Agricultural Operating $ 1,072 $ 1,072 $ — Total $ 2,968 $ 2,968 $ — Loans with a specific valuation allowance 1-4 Family Real Estate $ 78 $ 78 $ 12 Commercial Operating $ 302 $ 302 $ 53 Total $ 380 $ 380 $ 65 Recorded Unpaid Principal Specific September 30, 2016 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 84 $ 84 $ — Commercial and Multi-Family Real Estate 433 433 — Total $ 517 $ 517 $ — Loans with a specific valuation allowance 1-4 Family Real Estate $ 78 $ 78 $ 10 Total $ 78 $ 78 $ 10 The following table provides the average recorded investment in impaired loans for the three and six month periods ended March 31, 2017 and 2016 . Three Months Ended March 31, Six Months Ended March 31, 2017 2016 2017 2016 Average Average Average Average (Dollars in Thousands) 1-4 Family Real Estate $ 210 $ 116 $ 191 $ 118 Commercial and Multi-Family Real Estate 668 1,257 550 1,302 Agricultural Real Estate 194 — 97 — Consumer — — — — Commercial Operating 437 7 302 8 Agricultural Operating 357 4,362 179 4,697 Premium Finance — — — — Total $ 1,866 $ 5,742 $ 1,319 $ 6,125 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 or six month periods ended March 31, 2017 or 2016 . Additionally, there were no TDR loans for which there was a payment default during the three or six month periods ended March 31, 2017 or 2016 that had been modified during the 12-month period prior to the default. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 6 Months Ended |
Mar. 31, 2017 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES At March 31, 2017 , the Company’s allowance for loan losses increased to $14.6 million from $5.6 million at September 30, 2016 . The increase in allowance was primarily driven by a $8.2 million reserve related to a substantial increase in tax season loans. In addition, the downgrade of a significant agriculture relationship during the quarter contributed to an increased provision and allowance. Downgrades in agricultural loans were related primarily to losses incurred due to lower commodity prices in recent years, notwithstanding record yields for many producers in our markets. Given underlying collateral values related to our agricultural loans, we believe we have minimal loss exposure in the portfolio at this time. During the six months ended March 31, 2017 , the Company recorded a provision for loan losses of $9.5 million compared to $2.0 million for the same period of the prior year. The Company had $0.5 million of net charge offs for the six months ended March 31, 2017 , compared to $0.8 million for the six months ended March 31, 2016 . 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 average loss rates over the past three years were low, offset with a higher agricultural loss rate in fiscal year 2016 driven by the charge off of one relationship. The Bank does not believe it is likely that these low loss conditions will continue indefinitely. Although the Bank’s four market areas have indirectly benefited from a stable agricultural market, the market has become slightly stressed as commodity prices have remained lower than a few years ago. Management expects that future losses in the agriculture operations and agriculture real estate loan portfolios 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, 2017 , 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
EARNINGS PER COMMON SHARE ("EPS") | 6 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE ("EPS") | EARNINGS PER COMMON SHARE Earnings per share is computed after deducting dividends. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the EPS calculation. Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in the EPS calculations. 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, 2017 and 2016 is presented below. Three Months Ended March 31, 2017 2016 (1) (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 32,142 $ 14,283 Less income allocated to dividends for common stock and nonvested restricted stock 1,214 1,105 Net income allocated to common shareholders for basic EPS 30,928 13,178 Weighted average common shares outstanding 9,345,277 8,496,357 Basic income per common share 3.44 1.68 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 32,142 $ 14,283 Less income allocated to dividends for common stock and nonvested restricted stock 1,214 1,105 Net income allocated to common stock for diluted EPS 30,928 13,178 Weighted average common shares outstanding 9,345,277 8,496,357 Outstanding options - based upon the two-class method 54,674 61,176 Weighted average diluted common shares outstanding 9,399,951 8,557,533 Diluted income per common share 3.42 1.67 Six Months Ended March 31, 2017 2016 (1) (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 33,386 $ 18,341 Less income allocated to dividends for common stock and nonvested restricted stock 1,187 1,088 Net income allocated to common shareholders for basic EPS 32,199 17,253 Average common shares outstanding 9,138,692 8,369,523 Basic income per common share 3.65 2.19 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 33,386 $ 18,341 Less income allocated to dividends for common stock and nonvested restricted stock 1,187 1,088 Net income allocated to common stock for diluted EPS 32,199 17,253 Average common shares outstanding 9,138,692 8,369,523 Outstanding options - based upon the two-class method 53,790 63,551 Average diluted common shares outstanding 9,192,482 8,433,074 Diluted income per common share 3.63 2.17 (1) See Note 1 Basis of Presentation for additional information describing adjustments made to the Company's EPS calculation. March 2016 QTD basic EPS of $1.69 was corrected to $1.68 and diluted EPS of $1.68 was corrected to $1.67 . March 2016 YTD basic EPS of $2.20 was corrected to $2.19 and diluted EPS of $2.18 was corrected to $2.17 . |
SECURITIES
SECURITIES | 6 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | 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, 2017 and September 30, 2016 are presented below. Available For Sale GROSS GROSS At March 31, 2017 AMORTIZED UNREALIZED UNREALIZED FAIR (Dollars in Thousands) Debt securities Small business administration securities 130,175 1,173 — 131,348 Non-bank qualified obligations of states and political subdivisions 927,959 7,914 (3,863 ) 932,010 Asset-backed securities 118,011 1,516 — 119,527 Mortgage-backed securities 651,784 — (8,951 ) 642,833 Total debt securities 1,827,929 10,603 (12,814 ) 1,825,718 Common equities and mutual funds 1,127 439 (11 ) 1,555 Total available for sale securities $ 1,829,056 $ 11,042 $ (12,825 ) $ 1,827,273 At September 30, 2016 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Trust preferred securities $ 14,935 $ — $ (1,957 ) $ 12,978 Small business administration securities 78,431 2,288 — 80,719 Non-bank qualified obligations of states and political subdivisions 668,628 30,141 (97 ) 698,672 Asset-backed securities 117,487 73 (745 ) 116,815 Mortgage-backed securities 555,036 4,382 (478 ) 558,940 Total debt securities 1,434,517 36,884 (3,277 ) 1,468,124 Common equities and mutual funds 755 373 (3 ) 1,125 Total available for sale securities $ 1,435,272 $ 37,257 $ (3,280 ) $ 1,469,249 Held to Maturity GROSS GROSS At March 31, 2017 AMORTIZED UNREALIZED UNREALIZED FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 20,177 $ 71 $ (143 ) $ 20,105 Non-bank qualified obligations of states and political subdivisions 454,129 2,397 (3,188 ) 453,338 Mortgage-backed securities 122,497 — (1,517 ) 120,980 Total held to maturity securities $ 596,803 $ 2,468 $ (4,848 ) $ 594,423 At September 30, 2016 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 20,626 $ 355 $ (44 ) $ 20,937 Non-bank qualified obligations of states and political subdivisions 465,469 11,744 (11 ) 477,202 Mortgage-backed securities 133,758 708 (31 ) 134,435 Total held to maturity securities $ 619,853 $ 12,807 $ (86 ) $ 632,574 Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary. This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: 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 did not have any trading securities at March 31, 2017 or September 30, 2016 . 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, 2017 and September 30, 2016 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At March 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions 239,208 (3,722 ) 2,594 (141 ) 241,802 (3,863 ) Mortgage-backed securities 609,681 (8,065 ) 33,152 (886 ) 642,833 (8,951 ) Total debt securities 848,889 (11,787 ) 35,746 (1,027 ) 884,635 (12,814 ) Common equities and mutual funds — — 373 (11 ) 373 (11 ) Total available for sale securities $ 848,889 $ (11,787 ) $ 36,119 $ (1,038 ) $ 885,008 $ (12,825 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Trust preferred securities $ — $ — $ 12,978 $ (1,957 ) $ 12,978 $ (1,957 ) Non-bank qualified obligations of states and political subdivisions 8,481 (58 ) 2,688 (39 ) 11,169 (97 ) Asset-backed securities 89,403 (745 ) — — 89,403 (745 ) Mortgage-backed securities 54,065 (230 ) 36,979 (248 ) 91,044 (478 ) Total debt securities 151,949 (1,033 ) 52,645 (2,244 ) 204,594 (3,277 ) Common equities and mutual funds — — 125 (3 ) 125 (3 ) Total available for sale securities $ 151,949 $ (1,033 ) $ 52,770 $ (2,247 ) $ 204,719 $ (3,280 ) Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At March 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 12,902 $ (123 ) $ 1,329 $ (20 ) $ 14,231 $ (143 ) Non-bank qualified obligations of states and political subdivisions 283,033 (3,188 ) — — 283,033 (3,188 ) Mortgage-backed securities 120,980 (1,517 ) — — 120,980 (1,517 ) Total held to maturity securities $ 416,915 $ (4,828 ) $ 1,329 $ (20 ) $ 418,244 $ (4,848 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Unrealized Fair Unrealized Fair Value Unrealized (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 2,909 $ (13 ) $ 2,256 $ (31 ) $ 5,165 $ (44 ) Non-bank qualified obligations of states and political subdivisions 1,294 (11 ) — — 1,294 (11 ) Mortgage-backed securities 20,061 (31 ) — — 20,061 (31 ) Total held to maturity securities $ 24,264 $ (55 ) $ 2,256 $ (31 ) $ 26,520 $ (86 ) At March 31, 2017 , 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, 2017 . The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED FAIR At March 31, 2017 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 18,662 19,134 Due after five years through ten years 444,661 450,446 Due after ten years 712,822 713,305 1,176,145 1,182,885 Mortgage-backed securities 651,784 642,833 Common equities and mutual funds 1,127 1,555 Total available for sale securities $ 1,829,056 $ 1,827,273 AMORTIZED FAIR At September 30, 2016 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 17,370 17,897 Due after five years through ten years 426,034 446,771 Due after ten years 436,077 444,516 879,481 909,184 Mortgage-backed securities 555,036 558,940 Common equities and mutual funds 755 1,125 Total available for sale securities $ 1,435,272 $ 1,469,249 Held To Maturity AMORTIZED FAIR At March 31, 2017 (Dollars in Thousands) Due in one year or less $ 341 $ 340 Due after one year through five years 17,723 17,814 Due after five years through ten years 152,790 153,428 Due after ten years 303,452 301,861 474,306 473,443 Mortgage-backed securities 122,497 120,980 Total held to maturity securities $ 596,803 $ 594,423 AMORTIZED FAIR At September 30, 2016 (Dollars in Thousands) Due in one year or less $ 472 $ 471 Due after one year through five years 12,502 12,696 Due after five years through ten years 157,944 163,806 Due after ten years 315,177 321,166 486,095 498,139 Mortgage-backed securities 133,758 134,435 Total held to maturity securities $ 619,853 $ 632,574 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements. At March 31, 2017 and September 30, 2016 , unfunded loan commitments approximated $ 236.3 million and $182.9 million , respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract. The Company had no commitments to purchase securities at March 31, 2017 or September 30, 2016 . 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 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. 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. Tracy Clement, the primary guarantor of the C&B Farms, Dakota Grain Farms, and Dakota River Farms indebtedness has filed a Chapter 11 bankruptcy proceeding in Minnesota. The Bank is an unsecured creditor in the bankruptcy proceeding. The Bank still has the right to collect from the three limited liability company debtors (C&B, Dakota Grain, and Dakota River). However, the Bank believes each entity is now insolvent and the collateral recovered and liquidated to the extent possible. The Bank has also settled with the other personal guarantor, Heather Swenson. The Bank commenced action against Interstate Commodities, Inc., on February 1, 2016, in the United States District Court for the District of South Dakota, Central Division. This matter arises out of the Bank’s loans to C&B Farms, which were guaranteed by Tracy Clement. The case alleges that Interstate Commodities has breached the terms of a subordination agreement entered into between Interstate Commodities and the Bank relating to the 2015 crops of C&B Farms, LLC. In March 2015, the Bank sent a letter to C&B Farms and Interstate Commodities agreeing that the Bank would subordinate its first position lien in the farm products of C&B Farms once the Bank’s 2015 input advances in an agreed upon sum had been paid in full. Interstate Commodities entered into various agreements with C&B Farms in which they agreed to purchase grain at a future date and provided purchase price advance financing to C&B Farms. Interstate Commodities also partially performed under the subordination agreement by paying or allowing certain sums to flow back to the Bank to pay on the agreed upon inputs. Interstate Commodities terminated the payments to the Bank before allowing full repayment of the 2015 inputs financed by the Bank before the subordination agreement was reached. This large, non-performing agricultural relationship was partially charged off during fiscal year 2016 and has no remaining loan balance. The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank earlier this year. Card Limited alleges that after all of the programs were wound down, there were two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $1,579,398 . The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. Other than the matters set forth above and litigation routine to the Company's or its subsidiaries' respective businesses, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party. |
STOCK COMPENSATION
STOCK COMPENSATION | 6 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION 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 the Company’s 2002 Omnibus Incentive Plan for the six months ended March 31, 2017 : Number Weighted Weighted Aggregate (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2016 125,560 $ 25.73 2.68 $ 4,379 Granted — — Exercised (26,352 ) 32.63 1,682 Forfeited or expired (16,252 ) 24.61 1,272 Options outstanding, March 31, 2017 82,956 $ 23.76 2.58 $ 5,371 Options exercisable, March 31, 2017 82,956 $ 23.76 2.58 $ 5,371 Number Weighted (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2016 20,656 $ 41.37 Granted 306,603 87.91 Vested (20,629 ) 72.34 Forfeited or expired (442 ) 56.25 Nonvested shares outstanding, March 31, 2017 306,188 $ 85.86 During the first and second quarters of fiscal 2017, stock awards were granted to the Company's three highest paid executive officers in connection with their signing of employment agreements with the Company. These stock awards vest over eight years. At March 31, 2017 , stock-based compensation expense not yet recognized in income totaled $21.4 million , which is expected to be recognized over a weighted average remaining period of 4.05 years. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 6 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | 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. The following tables present segment data for the Company for the three and six months ended March 31, 2017 and 2016 , respectively. Payments Banking Corporate Total Three Months Ended March 31, 2017 Interest income $ 3,312 $ 12,807 $ 11,599 $ 27,718 Interest expense 503 672 2,577 3,752 Net interest income 2,809 12,135 9,022 23,966 Provision for loan losses 7,883 766 — 8,649 Non-interest income 90,462 1,387 321 92,170 Non-interest expense 41,452 5,958 19,536 66,946 Income (loss) before income tax expense (benefit) 43,936 6,798 (10,193 ) 40,541 Total assets 74,194 1,145,054 2,766,348 3,985,596 Total deposits 2,606,674 228,805 36,752 2,872,231 Payments Banking Corporate Total Six Months Ended March 31, 2017 Interest income $ 6,224 $ 23,562 $ 20,507 $ 50,293 Interest expense 503 1,215 4,776 6,494 Net interest income 5,721 22,347 15,731 43,799 Provision for loan losses 8,214 1,278 — 9,492 Non-interest income 109,487 2,458 (426 ) 111,519 Non-interest expense 62,324 11,514 29,861 103,699 Income (loss) before income tax expense (benefit) 44,670 12,013 (14,556 ) 42,127 Total assets 74,194 1,145,054 2,766,348 3,985,596 Total deposits 2,606,674 228,805 36,752 2,872,231 Payments Banking Corporate 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 2,579 8,633 8,726 19,938 Provision 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 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 4,503 17,231 15,759 37,493 Provision 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 income tax expense (benefit) 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 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates . This ASU is effective for annual reporting periods beginning after December 15, 2019, and the Company is currently undertaking a data analysis and taking measures so that its systems capture data applicable to the standard. 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) consistent 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 expects the impact to the consolidated financial statements to be minimal. 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 taking inventory of all leases and analyzing what their treatment will be under the new guidance. 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 provide 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 its different prepaid card programs and income streams to ascertain how breakage will be recognized under the standard. ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and does not have an impact on the consolidated financial statements . ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic companies only); and (7) intrinsic value (nonpublic companies only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments This ASU addresses eight classification issues related to the statement of cash flows including: debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 6 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy is as follows: Level 1 Inputs – Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date. Level 2 Inputs – Valuation is based upon 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, 2017 or September 30, 2016 . 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, 2017 and September 30, 2016 . Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition. Fair Value At March 31, 2017 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 Small business administration securities 131,348 — 131,348 — — — — — Obligations of states and political subdivisions — — — — 20,105 — 20,105 — Non-bank qualified obligations of states and political subdivisions 932,010 — 932,010 — 453,338 — 453,338 — Asset-backed securities 119,527 — 119,527 — — — — — Mortgage-backed securities 642,833 — 642,833 — 120,980 — 120,980 — Total debt securities 1,825,718 — 1,825,718 — 594,423 — 594,423 — Common equities and mutual funds 1,555 1,555 — — — — — — Total securities $ 1,827,273 $ 1,555 $ 1,825,718 $ — $ 594,423 $ — $ 594,423 $ — Fair Value At September 30, 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 $ 12,978 $ — $ 12,978 $ — $ — $ — $ — $ — Small business administration securities 80,719 — 80,719 — — — — — Obligations of states and political subdivisions — — — — 20,937 — 20,937 — Non-bank qualified obligations of states and political subdivisions 698,672 — 698,672 — 477,202 — 477,202 — Asset-backed securities 116,815 — 116,815 — — — — — Mortgage-backed securities 558,940 — 558,940 — 134,435 — 134,435 — Total debt securities 1,468,124 — 1,468,124 — 632,574 — 632,574 — Common equities and mutual funds 1,125 1,125 — — — — — — Total securities $ 1,469,249 $ 1,125 $ 1,468,124 $ — $ 632,574 $ — $ 632,574 $ — Contingent Consideration. The fair value of the cash contingent consideration liability in the SCS acquisition was estimated using an option based income valuation method with significant inputs that are not observable in the market and thus represents a Level 3 fair value measurement as defined in the FASB's ASC 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included the Company's probability assessments of expected future cash flows related to its acquisition of SCS during the earn-out period. March 31, 2017 September 30, 2016 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types (Dollars in Thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Liabilities: Contingent Consideration $ — $ — $ 17,252 $ 17,252 $ — $ — $ — $ — Total liabilities $ — $ — $ 17,252 $ 17,252 $ — $ — $ — $ — 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 were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2017 and September 30, 2016 . Fair Value At March 31, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family residential mortgage loans $ 67 $ — $ — $ 67 Commercial operating loans $ 248 $ — $ — $ 248 Total Impaired Loans $ 315 $ — $ — $ 315 Foreclosed Assets, net $ — $ — $ — $ — Total $ 315 $ — $ — $ 315 Fair Value At September 30, 2016 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family residential mortgage loans $ 68 $ — $ — $ 68 Total Impaired Loans 68 — — 68 Foreclosed Assets, net 76 76 Total $ 144 $ — $ — $ 144 Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at Fair Value at Valuation Unobservable Input Range of Inputs Impaired Loans, net $ 315 68 Market approach Appraised values (1) 4.00 - 10.00% Foreclosed Assets, net $ — 76 Market approach Appraised values (1) 4.00 - 10.00% Contingent Consideration $ 17,252 — Option based income Discount rate 7.20% Risk-free rate 1.02% Company specific discount rate 1.76% (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs in a range of 4% to 10% . The following table discloses the Company’s estimated fair value amounts of its financial instruments as of the dates set forth below. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of March 31, 2017 and September 30, 2016 , 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, 2017 and September 30, 2016 . March 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 67,293 $ 67,293 $ 67,293 $ — $ — Securities available for sale 1,827,273 1,827,273 1,555 1,825,718 — Securities held to maturity 596,803 594,423 — 594,423 — Total securities 2,424,076 2,421,696 1,555 2,420,141 — Loans receivable: One to four family residential mortgage loans 178,310 176,879 — — 176,879 Commercial and multi-family real estate loans 473,058 464,071 — — 464,071 Agricultural real estate loans 62,422 58,829 — — 58,829 Consumer loans 182,156 181,687 — — 181,687 Commercial operating loans 33,894 34,004 — — 34,004 Agricultural operating loans 35,493 35,394 — — 35,394 Premium finance loans 187,049 190,327 — — 190,327 Total loans receivable 1,152,382 1,141,191 — — 1,141,191 Federal Home Loan Bank stock 25,043 25,043 — 25,043 — Accrued interest receivable 20,902 20,902 20,902 — — Financial liabilities Noninterest bearing demand deposits 2,637,167 2,637,167 2,637,167 — — Interest bearing demand deposits, savings, and money markets 151,971 151,971 151,971 — — Certificates of deposit 61,170 60,689 — 60,689 — Wholesale non-maturing deposits 21,923 21,923 21,923 — — Total deposits 2,872,231 2,871,750 2,811,061 60,689 — Advances from Federal Home Loan Bank 7,000 7,891 — 7,891 — Federal funds purchased 493,000 493,000 493,000 — — Securities sold under agreements to repurchase 1,848 1,848 — 1,848 — Capital lease 1,980 1,980 — 1,980 — Trust preferred securities 10,310 10,446 — 10,446 — Subordinated debentures 73,278 75,375 — 75,375 — Accrued interest payable 722 722 722 — — September 30, 2016 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 773,830 $ 773,830 $ 773,830 $ — $ — Securities available for sale 1,469,249 1,469,249 1,125 1,468,124 — Securities held to maturity 619,853 632,574 — 632,574 — Total securities 2,089,102 2,101,823 1,125 2,100,698 — Loans receivable: One to four family residential mortgage loans 162,298 163,886 — — 163,886 Commercial and multi-family real estate loans 422,932 422,307 — — 422,307 Agricultural real estate loans 63,612 63,868 — — 63,868 Consumer loans 37,094 36,738 — — 36,738 Commercial operating loans 31,271 31,108 — — 31,108 Agricultural operating loans 37,083 36,897 — — 36,897 Premium finance loans 171,604 172,000 — — 172,000 Total loans receivable 925,894 926,803 — — 926,803 Federal Home Loan Bank stock 47,512 47,512 — 47,512 — Accrued interest receivable 17,199 17,199 17,199 — — Financial liabilities Noninterest bearing demand deposits 2,167,522 2,167,522 2,167,522 — — Interest bearing demand deposits, savings, and money markets 136,568 136,568 136,568 — — Certificates of deposit 125,992 125,772 — 125,772 — Total deposits 2,430,082 2,429,862 2,304,090 125,772 — Advances from Federal Home Loan Bank 107,000 108,168 — 108,168 — Federal funds purchased 992,000 992,000 992,000 — — Securities sold under agreements to repurchase 3,039 3,039 — 3,039 — Capital lease 2,018 2,018 — 2,018 — Trust preferred securities 10,310 10,437 — 10,437 — Subordinated debentures 73,211 77,250 — 77,250 — Accrued interest payable 875 875 875 — — The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at March 31, 2017 and September 30, 2016 . 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, homogeneous loans with similar terms and conditions were grouped together and discounted at a target rate at which similar loans would be made to borrowers at March 31, 2017 or September 30, 2016 . 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 FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value. ACCRUED INTEREST RECEIVABLE The carrying amount of accrued interest receivable is assumed to approximate the fair value. DEPOSITS The carrying values of non-interest bearing checking deposits, interest bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value, since such deposits are immediately withdrawable without penalty. The fair value of time certificates of deposit and wholesale certificates of deposit were 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 intangibles are not financial instruments 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 Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument. Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time. Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision. Changes in assumptions as well as tax considerations could significantly affect the estimates. Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company held a total of $ 98.7 million of goodwill as of March 31, 2017. The recorded goodwill was due to two separate business combinations during fiscal 2015 and two separate business combinations during the first quarter of fiscal 2017: $ 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; $ 25.4 million of goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015; $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS on November 1, 2016; and $31.4 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of SCS on December 14, 2016. The goodwill associated with these transactions is deductible for tax purposes. The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2017 and 2016 were as follows: 2017 2016 (Dollars in Thousands) Goodwill Balance as of September 30, $ 36,928 $ 36,928 Acquisitions during the period 61,795 — Write-offs during the period — — Balance as of March 31, $ 98,723 $ 36,928 Trademark (1) Non-Compete (2) Customer (3) All Others (4) Total Intangibles Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Acquisitions during the period 5,500 2,180 31,770 6,869 46,319 Amortization during the period (282 ) (228 ) (7,735 ) (362 ) (8,607 ) Write-offs during the period — — — — — Balance as of March 31, 2017 $ 10,367 $ 2,079 $ 44,625 $ 9,562 $ 66,633 Gross carrying amount $ 10,990 $ 2,480 $ 57,810 $ 10,426 $ 81,706 Accumulated amortization $ (623 ) $ (401 ) $ (13,185 ) $ (864 ) $ (15,073 ) Balance as of March 31, 2017 $ 10,367 $ 2,079 $ 44,625 $ 9,562 $ 66,633 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer (3) All Others (4) 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 Gross carrying amount $ 5,490 $ 300 $ 26,040 $ 3,508 $ 35,338 Accumulated amortization $ (195 ) $ (123 ) $ (3,356 ) $ (392 ) $ (4,066 ) Balance as of March 31, 2016 $ 5,295 $ 177 $ 22,684 $ 3,116 $ 31,272 (1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining period of 2017 and subsequent fiscal years is as follows: (Dollars in Thousands) Remaining in 2017 $ 3,740 2018 11,852 2019 9,070 2020 7,289 2021 6,336 2022 5,029 Thereafter 23,317 Total anticipated intangible amortization $ 66,633 The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There were no impairments to intangible assets during the three or six months ended March 31, 2017 or 2016 . The annual goodwill impairment test for fiscal 2017 will be conducted at September 30, 2017 . |
REGULATORY MATTERS AND SETTLEME
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS | 6 Months Ended |
Mar. 31, 2017 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS | REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS 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, and on June 30, 2016, the FDIC finalized the FAQs. The Company believes that the final FAQs do not materially impact the processes that it uses to identify, accept and report brokered deposits. On April 26, 2016, the FDIC issued 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"). The Final Rule imposes higher assessments for banks that the FDIC believes present higher risk profiles. The Final Rule became effective with the Bank's December 2016 assessment invoice, which the Company received in March 2017. 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 FAQs 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
SUBSEQUENT EVENTS | 6 Months Ended |
Mar. 31, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In April 2017, the Company formed a new entity, Meta Capital, LLC, that is a wholly owned subsidiary of MetaBank. Meta Capital was formed for the purpose of investing in financial technology companies that align with the Company’s strategic initiatives. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 6 Months Ended |
Mar. 31, 2017 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates . This ASU is effective for annual reporting periods beginning after December 15, 2019, and the Company is currently undertaking a data analysis and taking measures so that its systems capture data applicable to the standard. 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) consistent 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 expects the impact to the consolidated financial statements to be minimal. 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 taking inventory of all leases and analyzing what their treatment will be under the new guidance. 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 provide 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 its different prepaid card programs and income streams to ascertain how breakage will be recognized under the standard. ASU 2015-17, Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes This ASU requires entities with a classified balance sheet to present all deferred tax assets and liabilities as noncurrent. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and does not have an impact on the consolidated financial statements . ASU 2016-09, Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting This ASU provides guidance to improve the accounting for share-based payment transactions as part of the FASB’s simplification initiative. The ASU changes seven aspects of the accounting for share-based payment award transactions, including: (1) accounting for income taxes; (2) classification of excess tax benefits on the statement of cash flows; (3) forfeitures; (4) minimum statutory tax withholding requirements; (5) classification of employee taxes paid on the statement of cash flows when an employer withholds shares for tax-withholding purposes; (6) practical expedient - expected term (nonpublic companies only); and (7) intrinsic value (nonpublic companies only). This update is effective for annual and interim periods in fiscal years beginning after December 15, 2016, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments This ASU addresses eight classification issues related to the statement of cash flows including: debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the consolidated financial statements. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
EPS [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the consolidated statement of financial condition as of November 1, 2016. As of November 1, 2016 (Dollars in Thousands) Fair value of consideration paid Cash $ 21,877 Stock issued 26,507 Total consideration paid 48,384 Fair value of assets acquired Intangible assets 17,930 Other assets 79 Total assets 18,009 Fair value of net assets acquired 18,009 Goodwill resulting from acquisition $ 30,375 |
SCS [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following table represents the approximate fair value of assets acquired and liabilities recorded of SCS on the consolidated statement of financial condition as of December 14, 2016. As of December 14, 2016 (Dollars in Thousands) Fair value of transaction consideration Cash 7,548 Stock issued 10,789 Paid consideration 18,337 Contingent consideration - cash 17,252 Contingent consideration - equity 24,142 Contingent consideration payable 41,394 Total consideration paid 59,731 Fair value of assets acquired Intangible assets 28,310 Other assets 2 Total assets 28,312 Fair value of net assets acquired 28,312 Goodwill resulting from acquisition 31,419 |
CREDIT DISCLOSURES (Tables)
CREDIT DISCLOSURES (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Loans Receivable | Loans receivable at March 31, 2017 and September 30, 2016 were as follows: March 31, 2017 September 30, 2016 (Dollars in Thousands) 1-4 Family Real Estate $ 178,310 $ 162,298 Commercial and Multi-Family Real Estate 473,058 422,932 Agricultural Real Estate 62,422 63,612 Consumer 182,156 37,094 Commercial Operating 33,894 31,271 Agricultural Operating 35,493 37,083 Premium Finance 187,049 171,604 Total Loans Receivable 1,152,382 925,894 Allowance for Loan Losses (14,602 ) (5,635 ) Net Deferred Loan Origination Fees (1,190 ) (789 ) Total Loans Receivable, Net $ 1,136,590 $ 919,470 |
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans | Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and six months ended March 31, 2017 and 2016 was as follows: 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium Unallocated Total (Dollars in Thousands) Three Months Ended March 31, 2017 Allowance for loan losses: Beginning balance $ 654 $ 1,912 $ 476 $ 47 $ 813 $ 1,341 $ 594 $ 578 $ 6,415 Provision (recovery) for loan losses (358 ) (170 ) 1,048 7,658 304 8 115 43 8,648 Charge offs — — — — (350 ) — (140 ) — (490 ) Recoveries — — — 1 — — 28 — 29 Ending balance $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Six Months Ended March 31, 2017 Allowance for loan losses: Beginning balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Provision (recovery) for loan (358 ) (456 ) 1,382 7,631 995 4 226 68 9,492 Charge offs — — — — (350 ) — (259 ) — (609 ) Recoveries — — — 24 5 13 42 — 84 Ending balance $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Ending balance: individually evaluated for impairment 12 — — — 53 — — — 65 Ending balance: collectively evaluated for impairment 284 1,742 1,524 7,706 714 1,349 597 621 14,537 Total $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Loans: Ending balance: individually 248 1,144 582 — 302 1,072 — — 3,348 Ending balance: collectively 178,062 471,914 61,840 182,156 33,592 34,421 187,049 — 1,149,034 Total $ 178,310 $ 473,058 $ 62,422 $ 182,156 $ 33,894 $ 35,493 $ 187,049 $ — $ 1,152,382 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium 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 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 — 40 — — — 2,846 — — 2,886 Ending balance: collectively 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 114 1,091 — — 6 3,421 — — 4,632 Ending balance: collectively 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 |
Asset Classification of Loans | The asset classification of loans at March 31, 2017 and September 30, 2016 were as follows: March 31, 2017 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium Total (Dollars in Thousands) Pass $ 176,844 $ 471,748 $ 28,828 $ 182,156 $ 33,572 $ 18,893 $ 187,049 $ 1,099,090 Watch 537 72 — — 21 40 — 670 Special Mention 660 204 2,965 — — — — 3,829 Substandard 269 1,034 30,629 — 248 16,560 — 48,740 Doubtful — — — — 53 — — 53 $ 178,310 $ 473,058 $ 62,422 $ 182,156 $ 33,894 $ 35,493 $ 187,049 $ 1,152,382 September 30, 2016 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural Premium Total (Dollars in Thousands) Pass $ 161,255 $ 421,577 $ 34,421 $ 37,094 $ 30,574 $ 19,669 $ 171,604 $ 876,194 Watch 200 72 2,934 — 184 4,625 — 8,015 Special Mention 666 962 25,675 — — 5,407 — 32,710 Substandard 177 321 582 — 513 7,382 — 8,975 Doubtful — — — — — — — — $ 162,298 $ 422,932 $ 63,612 $ 37,094 $ 31,271 $ 37,083 $ 171,604 $ 925,894 |
Past Due Loans | Past due loans at March 31, 2017 and September 30, 2016 were as follows: March 31, 2017 30-59 Days 60-89 Days Greater Than Total Past Current Non-Accrual Total Loans (Dollars in Thousands) 1-4 Family Real Estate $ 42 $ 59 $ — $ 101 $ 178,097 $ 112 $ 178,310 Commercial and Multi-Family Real Estate 2,864 315 — 3,179 469,724 155 473,058 Agricultural Real Estate 35,058 — — 35,058 23,903 3,461 62,422 Consumer 8,009 1,329 284 9,622 172,534 — 182,156 Commercial Operating — — — — 33,747 147 33,894 Agricultural Operating — — — — 35,396 97 35,493 Premium Finance 1,029 954 723 2,706 184,343 — 187,049 Total $ 47,002 $ 2,657 $ 1,007 $ 50,666 $ 1,097,744 $ 3,972 $ 1,152,382 September 30, 2016 30-59 Days 60-89 Days Greater Than Total Past Current Non-Accrual Total Loans (Dollars in Thousands) 1-4 Family Real Estate $ — $ 30 $ — $ 30 $ 162,185 $ 83 $ 162,298 Commercial and Multi-Family Real Estate — — — — 422,932 — 422,932 Agricultural Real Estate — — — — 63,612 — 63,612 Consumer — — 53 53 37,041 — 37,094 Commercial Operating 151 354 — 505 30,766 — 31,271 Agricultural Operating — — — — 37,083 — 37,083 Premium Finance 1,398 275 965 2,638 168,966 — 171,604 Total $ 1,549 $ 659 $ 1,018 $ 3,226 $ 922,585 $ 83 $ 925,894 |
Impaired Loans | Impaired loans at March 31, 2017 and September 30, 2016 were as follows: Recorded Unpaid Principal Specific March 31, 2017 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 170 $ 170 $ — Commercial and Multi-Family Real Estate 1,144 1,144 — Agricultural Real Estate $ 582 $ 582 $ — Agricultural Operating $ 1,072 $ 1,072 $ — Total $ 2,968 $ 2,968 $ — Loans with a specific valuation allowance 1-4 Family Real Estate $ 78 $ 78 $ 12 Commercial Operating $ 302 $ 302 $ 53 Total $ 380 $ 380 $ 65 Recorded Unpaid Principal Specific September 30, 2016 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 84 $ 84 $ — Commercial and Multi-Family Real Estate 433 433 — Total $ 517 $ 517 $ — Loans with a specific valuation allowance 1-4 Family Real Estate $ 78 $ 78 $ 10 Total $ 78 $ 78 $ 10 The following table provides the average recorded investment in impaired loans for the three and six month periods ended March 31, 2017 and 2016 . Three Months Ended March 31, Six Months Ended March 31, 2017 2016 2017 2016 Average Average Average Average (Dollars in Thousands) 1-4 Family Real Estate $ 210 $ 116 $ 191 $ 118 Commercial and Multi-Family Real Estate 668 1,257 550 1,302 Agricultural Real Estate 194 — 97 — Consumer — — — — Commercial Operating 437 7 302 8 Agricultural Operating 357 4,362 179 4,697 Premium Finance — — — — Total $ 1,866 $ 5,742 $ 1,319 $ 6,125 |
EARNINGS PER COMMON SHARE ("E27
EARNINGS PER COMMON SHARE ("EPS") (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS | A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three and six months ended March 31, 2017 and 2016 is presented below. Three Months Ended March 31, 2017 2016 (1) (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 32,142 $ 14,283 Less income allocated to dividends for common stock and nonvested restricted stock 1,214 1,105 Net income allocated to common shareholders for basic EPS 30,928 13,178 Weighted average common shares outstanding 9,345,277 8,496,357 Basic income per common share 3.44 1.68 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 32,142 $ 14,283 Less income allocated to dividends for common stock and nonvested restricted stock 1,214 1,105 Net income allocated to common stock for diluted EPS 30,928 13,178 Weighted average common shares outstanding 9,345,277 8,496,357 Outstanding options - based upon the two-class method 54,674 61,176 Weighted average diluted common shares outstanding 9,399,951 8,557,533 Diluted income per common share 3.42 1.67 Six Months Ended March 31, 2017 2016 (1) (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 33,386 $ 18,341 Less income allocated to dividends for common stock and nonvested restricted stock 1,187 1,088 Net income allocated to common shareholders for basic EPS 32,199 17,253 Average common shares outstanding 9,138,692 8,369,523 Basic income per common share 3.65 2.19 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 33,386 $ 18,341 Less income allocated to dividends for common stock and nonvested restricted stock 1,187 1,088 Net income allocated to common stock for diluted EPS 32,199 17,253 Average common shares outstanding 9,138,692 8,369,523 Outstanding options - based upon the two-class method 53,790 63,551 Average diluted common shares outstanding 9,192,482 8,433,074 Diluted income per common share 3.63 2.17 |
SECURITIES (Tables)
SECURITIES (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at March 31, 2017 and September 30, 2016 are presented below. Available For Sale GROSS GROSS At March 31, 2017 AMORTIZED UNREALIZED UNREALIZED FAIR (Dollars in Thousands) Debt securities Small business administration securities 130,175 1,173 — 131,348 Non-bank qualified obligations of states and political subdivisions 927,959 7,914 (3,863 ) 932,010 Asset-backed securities 118,011 1,516 — 119,527 Mortgage-backed securities 651,784 — (8,951 ) 642,833 Total debt securities 1,827,929 10,603 (12,814 ) 1,825,718 Common equities and mutual funds 1,127 439 (11 ) 1,555 Total available for sale securities $ 1,829,056 $ 11,042 $ (12,825 ) $ 1,827,273 At September 30, 2016 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Trust preferred securities $ 14,935 $ — $ (1,957 ) $ 12,978 Small business administration securities 78,431 2,288 — 80,719 Non-bank qualified obligations of states and political subdivisions 668,628 30,141 (97 ) 698,672 Asset-backed securities 117,487 73 (745 ) 116,815 Mortgage-backed securities 555,036 4,382 (478 ) 558,940 Total debt securities 1,434,517 36,884 (3,277 ) 1,468,124 Common equities and mutual funds 755 373 (3 ) 1,125 Total available for sale securities $ 1,435,272 $ 37,257 $ (3,280 ) $ 1,469,249 |
Securities Held to Maturity | Held to Maturity GROSS GROSS At March 31, 2017 AMORTIZED UNREALIZED UNREALIZED FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 20,177 $ 71 $ (143 ) $ 20,105 Non-bank qualified obligations of states and political subdivisions 454,129 2,397 (3,188 ) 453,338 Mortgage-backed securities 122,497 — (1,517 ) 120,980 Total held to maturity securities $ 596,803 $ 2,468 $ (4,848 ) $ 594,423 At September 30, 2016 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 20,626 $ 355 $ (44 ) $ 20,937 Non-bank qualified obligations of states and political subdivisions 465,469 11,744 (11 ) 477,202 Mortgage-backed securities 133,758 708 (31 ) 134,435 Total held to maturity securities $ 619,853 $ 12,807 $ (86 ) $ 632,574 |
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, 2017 and September 30, 2016 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At March 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions 239,208 (3,722 ) 2,594 (141 ) 241,802 (3,863 ) Mortgage-backed securities 609,681 (8,065 ) 33,152 (886 ) 642,833 (8,951 ) Total debt securities 848,889 (11,787 ) 35,746 (1,027 ) 884,635 (12,814 ) Common equities and mutual funds — — 373 (11 ) 373 (11 ) Total available for sale securities $ 848,889 $ (11,787 ) $ 36,119 $ (1,038 ) $ 885,008 $ (12,825 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Trust preferred securities $ — $ — $ 12,978 $ (1,957 ) $ 12,978 $ (1,957 ) Non-bank qualified obligations of states and political subdivisions 8,481 (58 ) 2,688 (39 ) 11,169 (97 ) Asset-backed securities 89,403 (745 ) — — 89,403 (745 ) Mortgage-backed securities 54,065 (230 ) 36,979 (248 ) 91,044 (478 ) Total debt securities 151,949 (1,033 ) 52,645 (2,244 ) 204,594 (3,277 ) Common equities and mutual funds — — 125 (3 ) 125 (3 ) Total available for sale securities $ 151,949 $ (1,033 ) $ 52,770 $ (2,247 ) $ 204,719 $ (3,280 ) |
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position | Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At March 31, 2017 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 12,902 $ (123 ) $ 1,329 $ (20 ) $ 14,231 $ (143 ) Non-bank qualified obligations of states and political subdivisions 283,033 (3,188 ) — — 283,033 (3,188 ) Mortgage-backed securities 120,980 (1,517 ) — — 120,980 (1,517 ) Total held to maturity securities $ 416,915 $ (4,828 ) $ 1,329 $ (20 ) $ 418,244 $ (4,848 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Unrealized Fair Unrealized Fair Value Unrealized (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 2,909 $ (13 ) $ 2,256 $ (31 ) $ 5,165 $ (44 ) Non-bank qualified obligations of states and political subdivisions 1,294 (11 ) — — 1,294 (11 ) Mortgage-backed securities 20,061 (31 ) — — 20,061 (31 ) Total held to maturity securities $ 24,264 $ (55 ) $ 2,256 $ (31 ) $ 26,520 $ (86 ) |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED FAIR At March 31, 2017 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 18,662 19,134 Due after five years through ten years 444,661 450,446 Due after ten years 712,822 713,305 1,176,145 1,182,885 Mortgage-backed securities 651,784 642,833 Common equities and mutual funds 1,127 1,555 Total available for sale securities $ 1,829,056 $ 1,827,273 AMORTIZED FAIR At September 30, 2016 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 17,370 17,897 Due after five years through ten years 426,034 446,771 Due after ten years 436,077 444,516 879,481 909,184 Mortgage-backed securities 555,036 558,940 Common equities and mutual funds 755 1,125 Total available for sale securities $ 1,435,272 $ 1,469,249 Held To Maturity AMORTIZED FAIR At March 31, 2017 (Dollars in Thousands) Due in one year or less $ 341 $ 340 Due after one year through five years 17,723 17,814 Due after five years through ten years 152,790 153,428 Due after ten years 303,452 301,861 474,306 473,443 Mortgage-backed securities 122,497 120,980 Total held to maturity securities $ 596,803 $ 594,423 AMORTIZED FAIR At September 30, 2016 (Dollars in Thousands) Due in one year or less $ 472 $ 471 Due after one year through five years 12,502 12,696 Due after five years through ten years 157,944 163,806 Due after ten years 315,177 321,166 486,095 498,139 Mortgage-backed securities 133,758 134,435 Total held to maturity securities $ 619,853 $ 632,574 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity of Options | The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the Company’s 2002 Omnibus Incentive Plan for the six months ended March 31, 2017 : Number Weighted Weighted Aggregate (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2016 125,560 $ 25.73 2.68 $ 4,379 Granted — — Exercised (26,352 ) 32.63 1,682 Forfeited or expired (16,252 ) 24.61 1,272 Options outstanding, March 31, 2017 82,956 $ 23.76 2.58 $ 5,371 Options exercisable, March 31, 2017 82,956 $ 23.76 2.58 $ 5,371 Number Weighted (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2016 20,656 $ 41.37 Granted 306,603 87.91 Vested (20,629 ) 72.34 Forfeited or expired (442 ) 56.25 Nonvested shares outstanding, March 31, 2017 306,188 $ 85.86 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Segment Reporting [Abstract] | |
Segment Information of Entity | The following tables present segment data for the Company for the three and six months ended March 31, 2017 and 2016 , respectively. Payments Banking Corporate Total Three Months Ended March 31, 2017 Interest income $ 3,312 $ 12,807 $ 11,599 $ 27,718 Interest expense 503 672 2,577 3,752 Net interest income 2,809 12,135 9,022 23,966 Provision for loan losses 7,883 766 — 8,649 Non-interest income 90,462 1,387 321 92,170 Non-interest expense 41,452 5,958 19,536 66,946 Income (loss) before income tax expense (benefit) 43,936 6,798 (10,193 ) 40,541 Total assets 74,194 1,145,054 2,766,348 3,985,596 Total deposits 2,606,674 228,805 36,752 2,872,231 Payments Banking Corporate Total Six Months Ended March 31, 2017 Interest income $ 6,224 $ 23,562 $ 20,507 $ 50,293 Interest expense 503 1,215 4,776 6,494 Net interest income 5,721 22,347 15,731 43,799 Provision for loan losses 8,214 1,278 — 9,492 Non-interest income 109,487 2,458 (426 ) 111,519 Non-interest expense 62,324 11,514 29,861 103,699 Income (loss) before income tax expense (benefit) 44,670 12,013 (14,556 ) 42,127 Total assets 74,194 1,145,054 2,766,348 3,985,596 Total deposits 2,606,674 228,805 36,752 2,872,231 Payments Banking Corporate 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 2,579 8,633 8,726 19,938 Provision 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 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 4,503 17,231 15,759 37,493 Provision 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 income tax expense (benefit) 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 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Fair Value Disclosures [Abstract] | |
Summary of Fair Values of Securities Available for Sale and Held to Maturity | The following table summarizes the fair values of securities available for sale and held to maturity at March 31, 2017 and September 30, 2016 . Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the consolidated statements of financial condition. Fair Value At March 31, 2017 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 Small business administration securities 131,348 — 131,348 — — — — — Obligations of states and political subdivisions — — — — 20,105 — 20,105 — Non-bank qualified obligations of states and political subdivisions 932,010 — 932,010 — 453,338 — 453,338 — Asset-backed securities 119,527 — 119,527 — — — — — Mortgage-backed securities 642,833 — 642,833 — 120,980 — 120,980 — Total debt securities 1,825,718 — 1,825,718 — 594,423 — 594,423 — Common equities and mutual funds 1,555 1,555 — — — — — — Total securities $ 1,827,273 $ 1,555 $ 1,825,718 $ — $ 594,423 $ — $ 594,423 $ — Fair Value At September 30, 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 $ 12,978 $ — $ 12,978 $ — $ — $ — $ — $ — Small business administration securities 80,719 — 80,719 — — — — — Obligations of states and political subdivisions — — — — 20,937 — 20,937 — Non-bank qualified obligations of states and political subdivisions 698,672 — 698,672 — 477,202 — 477,202 — Asset-backed securities 116,815 — 116,815 — — — — — Mortgage-backed securities 558,940 — 558,940 — 134,435 — 134,435 — Total debt securities 1,468,124 — 1,468,124 — 632,574 — 632,574 — Common equities and mutual funds 1,125 1,125 — — — — — — Total securities $ 1,469,249 $ 1,125 $ 1,468,124 $ — $ 632,574 $ — $ 632,574 $ — |
Assets Measured at Fair Value on Nonrecurring Basis | The significant inputs in the Level 3 measurement not supported by market activity included the Company's probability assessments of expected future cash flows related to its acquisition of SCS during the earn-out period. March 31, 2017 September 30, 2016 Fair Value Measurements Using Input Types Fair Value Measurements Using Input Types (Dollars in Thousands) Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Liabilities: Contingent Consideration $ — $ — $ 17,252 $ 17,252 $ — $ — $ — $ — Total liabilities $ — $ — $ 17,252 $ 17,252 $ — $ — $ — $ — The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of March 31, 2017 and September 30, 2016 . Fair Value At March 31, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family residential mortgage loans $ 67 $ — $ — $ 67 Commercial operating loans $ 248 $ — $ — $ 248 Total Impaired Loans $ 315 $ — $ — $ 315 Foreclosed Assets, net $ — $ — $ — $ — Total $ 315 $ — $ — $ 315 Fair Value At September 30, 2016 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family residential mortgage loans $ 68 $ — $ — $ 68 Total Impaired Loans 68 — — 68 Foreclosed Assets, net 76 76 Total $ 144 $ — $ — $ 144 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at Fair Value at Valuation Unobservable Input Range of Inputs Impaired Loans, net $ 315 68 Market approach Appraised values (1) 4.00 - 10.00% Foreclosed Assets, net $ — 76 Market approach Appraised values (1) 4.00 - 10.00% Contingent Consideration $ 17,252 — Option based income Discount rate 7.20% Risk-free rate 1.02% Company specific discount rate 1.76% (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs in a range of 4% to 10% . |
Carrying Amount and Estimated Fair Value of Financial Instruments | The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at March 31, 2017 and September 30, 2016 . March 31, 2017 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 67,293 $ 67,293 $ 67,293 $ — $ — Securities available for sale 1,827,273 1,827,273 1,555 1,825,718 — Securities held to maturity 596,803 594,423 — 594,423 — Total securities 2,424,076 2,421,696 1,555 2,420,141 — Loans receivable: One to four family residential mortgage loans 178,310 176,879 — — 176,879 Commercial and multi-family real estate loans 473,058 464,071 — — 464,071 Agricultural real estate loans 62,422 58,829 — — 58,829 Consumer loans 182,156 181,687 — — 181,687 Commercial operating loans 33,894 34,004 — — 34,004 Agricultural operating loans 35,493 35,394 — — 35,394 Premium finance loans 187,049 190,327 — — 190,327 Total loans receivable 1,152,382 1,141,191 — — 1,141,191 Federal Home Loan Bank stock 25,043 25,043 — 25,043 — Accrued interest receivable 20,902 20,902 20,902 — — Financial liabilities Noninterest bearing demand deposits 2,637,167 2,637,167 2,637,167 — — Interest bearing demand deposits, savings, and money markets 151,971 151,971 151,971 — — Certificates of deposit 61,170 60,689 — 60,689 — Wholesale non-maturing deposits 21,923 21,923 21,923 — — Total deposits 2,872,231 2,871,750 2,811,061 60,689 — Advances from Federal Home Loan Bank 7,000 7,891 — 7,891 — Federal funds purchased 493,000 493,000 493,000 — — Securities sold under agreements to repurchase 1,848 1,848 — 1,848 — Capital lease 1,980 1,980 — 1,980 — Trust preferred securities 10,310 10,446 — 10,446 — Subordinated debentures 73,278 75,375 — 75,375 — Accrued interest payable 722 722 722 — — September 30, 2016 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 773,830 $ 773,830 $ 773,830 $ — $ — Securities available for sale 1,469,249 1,469,249 1,125 1,468,124 — Securities held to maturity 619,853 632,574 — 632,574 — Total securities 2,089,102 2,101,823 1,125 2,100,698 — Loans receivable: One to four family residential mortgage loans 162,298 163,886 — — 163,886 Commercial and multi-family real estate loans 422,932 422,307 — — 422,307 Agricultural real estate loans 63,612 63,868 — — 63,868 Consumer loans 37,094 36,738 — — 36,738 Commercial operating loans 31,271 31,108 — — 31,108 Agricultural operating loans 37,083 36,897 — — 36,897 Premium finance loans 171,604 172,000 — — 172,000 Total loans receivable 925,894 926,803 — — 926,803 Federal Home Loan Bank stock 47,512 47,512 — 47,512 — Accrued interest receivable 17,199 17,199 17,199 — — Financial liabilities Noninterest bearing demand deposits 2,167,522 2,167,522 2,167,522 — — Interest bearing demand deposits, savings, and money markets 136,568 136,568 136,568 — — Certificates of deposit 125,992 125,772 — 125,772 — Total deposits 2,430,082 2,429,862 2,304,090 125,772 — Advances from Federal Home Loan Bank 107,000 108,168 — 108,168 — Federal funds purchased 992,000 992,000 992,000 — — Securities sold under agreements to repurchase 3,039 3,039 — 3,039 — Capital lease 2,018 2,018 — 2,018 — Trust preferred securities 10,310 10,437 — 10,437 — Subordinated debentures 73,211 77,250 — 77,250 — Accrued interest payable 875 875 875 — — |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Mar. 31, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The changes in the carrying amount of the Company’s goodwill and intangible assets for the six months ended March 31, 2017 and 2016 were as follows: 2017 2016 (Dollars in Thousands) Goodwill Balance as of September 30, $ 36,928 $ 36,928 Acquisitions during the period 61,795 — Write-offs during the period — — Balance as of March 31, $ 98,723 $ 36,928 Trademark (1) Non-Compete (2) Customer (3) All Others (4) Total Intangibles Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Acquisitions during the period 5,500 2,180 31,770 6,869 46,319 Amortization during the period (282 ) (228 ) (7,735 ) (362 ) (8,607 ) Write-offs during the period — — — — — Balance as of March 31, 2017 $ 10,367 $ 2,079 $ 44,625 $ 9,562 $ 66,633 Gross carrying amount $ 10,990 $ 2,480 $ 57,810 $ 10,426 $ 81,706 Accumulated amortization $ (623 ) $ (401 ) $ (13,185 ) $ (864 ) $ (15,073 ) Balance as of March 31, 2017 $ 10,367 $ 2,079 $ 44,625 $ 9,562 $ 66,633 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer (3) All Others (4) 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 Gross carrying amount $ 5,490 $ 300 $ 26,040 $ 3,508 $ 35,338 Accumulated amortization $ (195 ) $ (123 ) $ (3,356 ) $ (392 ) $ (4,066 ) Balance as of March 31, 2016 $ 5,295 $ 177 $ 22,684 $ 3,116 $ 31,272 (1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. |
Schedule of Future Amortization Expense | The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining period of 2017 and subsequent fiscal years is as follows: (Dollars in Thousands) Remaining in 2017 $ 3,740 2018 11,852 2019 9,070 2020 7,289 2021 6,336 2022 5,029 Thereafter 23,317 Total anticipated intangible amortization $ 66,633 |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Thousands | Dec. 14, 2016USD ($)shares | Nov. 01, 2016USD ($)franchiseshares | Mar. 31, 2017USD ($) | Sep. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Pre-tax transaction related expenses | $ 600 | |||||
Fair value of consideration paid | ||||||
Contingent consideration - cash | 17,252 | $ 0 | ||||
Contingent consideration - equity | 24,142 | 0 | ||||
Fair value of assets acquired | ||||||
Goodwill resulting from acquisition | $ 98,723 | $ 36,928 | $ 36,928 | $ 36,928 | ||
EPS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of Electronic Return Originators | franchise | 10,000 | |||||
Pre-tax transaction related expenses | $ 500 | |||||
Fair value of consideration paid | ||||||
Cash | $ 21,877 | |||||
Number of shares issued | shares | 369,179 | |||||
Stock issued | $ 26,507 | |||||
Total consideration paid | 48,384 | |||||
Fair value of assets acquired | ||||||
Intangible assets | 17,930 | |||||
Other assets | 79 | |||||
Total assets | 18,009 | |||||
Fair value of net assets acquired | 18,009 | |||||
Goodwill resulting from acquisition | $ 30,375 | |||||
SCS [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Contingent consideration arrangements, measured business gross profit maximum | $ 17,500 | |||||
Performance target earnout payments (in shares) | shares | 264,431 | |||||
Performance target earnout payments, percent | 100.00% | |||||
Fair value of consideration paid | ||||||
Cash | $ 7,548 | |||||
Number of shares issued | shares | 113,328 | |||||
Stock issued | $ 10,789 | |||||
Paid consideration | 18,337 | |||||
Contingent consideration - cash | 17,252 | |||||
Contingent consideration - equity | 24,142 | |||||
Contingent consideration payable | 41,394 | |||||
Total consideration paid | 59,731 | |||||
Fair value of assets acquired | ||||||
Intangible assets | 28,310 | |||||
Other assets | 2 | |||||
Total assets | 28,312 | |||||
Fair value of net assets acquired | 28,312 | |||||
Goodwill resulting from acquisition | $ 31,419 |
CREDIT DISCLSOURES - Summary of
CREDIT DISCLSOURES - Summary of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | $ 1,152,382 | $ 925,894 | $ 785,404 |
Allowance for loan losses | (14,602) | (5,635) | |
Net Deferred Loan Origination Fees | (1,190) | (789) | |
Total Loans Receivable, Net | 1,136,590 | 919,470 | |
1-4 Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 178,310 | 162,298 | 140,000 |
Commercial and Multi-Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 473,058 | 422,932 | 354,794 |
Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 62,422 | 63,612 | 64,111 |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 182,156 | 37,094 | 35,937 |
Commercial Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 33,894 | 31,271 | 26,909 |
Agricultural Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 35,493 | 37,083 | 42,081 |
Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | $ 187,049 | $ 171,604 | $ 121,572 |
CREDIT DISCLSOURES - Allowance
CREDIT DISCLSOURES - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 | |
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | $ 6,415 | $ 6,666 | $ 6,255 | ||||
Provision (recovery) for loan losses | 8,648 | 1,173 | $ 9,492 | 1,959 | |||
Charge offs | (490) | (427) | (609) | (817) | |||
Recoveries | 29 | 19 | 84 | 34 | |||
Ending balance | 14,602 | 7,431 | 14,602 | 7,431 | |||
Ending balance: individually evaluated for impairment | $ 65 | $ 2,886 | |||||
Ending balance: collectively evaluated for impairment | 14,537 | 4,545 | |||||
Total | 6,415 | 6,666 | 14,602 | 6,255 | 14,602 | 7,431 | |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 3,348 | 4,632 | |||||
Ending balance: collectively evaluated for impairment | 1,149,034 | 780,772 | |||||
Total Loans Receivable | 1,152,382 | $ 925,894 | 785,404 | ||||
1-4 Family Real Estate [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 654 | 285 | 654 | 278 | |||
Provision (recovery) for loan losses | (358) | 42 | (358) | 49 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 296 | 327 | 296 | 327 | |||
Ending balance: individually evaluated for impairment | 12 | 0 | |||||
Ending balance: collectively evaluated for impairment | 284 | 327 | |||||
Total | 654 | 285 | 654 | 278 | 296 | 654 | 327 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 248 | 114 | |||||
Ending balance: collectively evaluated for impairment | 178,062 | 139,886 | |||||
Total Loans Receivable | 178,310 | 162,298 | 140,000 | ||||
Commercial and Multi-Family Real Estate [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 1,912 | 1,194 | 2,198 | 1,187 | |||
Provision (recovery) for loan losses | (170) | 790 | (456) | 797 | |||
Charge offs | 0 | (290) | 0 | (290) | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 1,742 | 1,694 | 1,742 | 1,694 | |||
Ending balance: individually evaluated for impairment | 0 | 40 | |||||
Ending balance: collectively evaluated for impairment | 1,742 | 1,654 | |||||
Total | 1,912 | 1,194 | 2,198 | 1,187 | 1,742 | 2,198 | 1,694 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 1,144 | 1,091 | |||||
Ending balance: collectively evaluated for impairment | 471,914 | 353,703 | |||||
Total Loans Receivable | 473,058 | 422,932 | 354,794 | ||||
Agricultural Real Estate [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 476 | 171 | 142 | 163 | |||
Provision (recovery) for loan losses | 1,048 | (17) | 1,382 | (9) | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 1,524 | 154 | 1,524 | 154 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 1,524 | 154 | |||||
Total | 476 | 171 | 142 | 163 | 1,524 | 142 | 154 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 582 | 0 | |||||
Ending balance: collectively evaluated for impairment | 61,840 | 64,111 | |||||
Total Loans Receivable | 62,422 | 63,612 | 64,111 | ||||
Consumer [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 47 | 20 | 51 | 20 | |||
Provision (recovery) for loan losses | 7,658 | 1,039 | 7,631 | 1,039 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 1 | 0 | 24 | 0 | |||
Ending balance | 7,706 | 1,059 | 7,706 | 1,059 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 7,706 | 1,059 | |||||
Total | 47 | 20 | 51 | 20 | 7,706 | 51 | 1,059 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 182,156 | 35,937 | |||||
Total Loans Receivable | 182,156 | 37,094 | 35,937 | ||||
Commercial Operating [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 813 | 107 | 117 | 28 | |||
Provision (recovery) for loan losses | 304 | (62) | 995 | 17 | |||
Charge offs | (350) | 0 | (350) | 0 | |||
Recoveries | 0 | 0 | 5 | 0 | |||
Ending balance | 767 | 45 | 767 | 45 | |||
Ending balance: individually evaluated for impairment | 53 | 0 | |||||
Ending balance: collectively evaluated for impairment | 714 | 45 | |||||
Total | 813 | 107 | 117 | 28 | 767 | 117 | 45 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 302 | 6 | |||||
Ending balance: collectively evaluated for impairment | 33,592 | 26,903 | |||||
Total Loans Receivable | 33,894 | 31,271 | 26,909 | ||||
Agricultural Operating [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 1,341 | 3,856 | 1,332 | 3,537 | |||
Provision (recovery) for loan losses | 8 | (529) | 4 | (210) | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 13 | 0 | |||
Ending balance | 1,349 | 3,327 | 1,349 | 3,327 | |||
Ending balance: individually evaluated for impairment | 0 | 2,846 | |||||
Ending balance: collectively evaluated for impairment | 1,349 | 481 | |||||
Total | 1,341 | 3,856 | 1,332 | 3,537 | 1,349 | 1,332 | 3,327 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 1,072 | 3,421 | |||||
Ending balance: collectively evaluated for impairment | 34,421 | 38,660 | |||||
Total Loans Receivable | 35,493 | 37,083 | 42,081 | ||||
Premium Finance [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 594 | 424 | 588 | 293 | |||
Provision (recovery) for loan losses | 115 | 171 | 226 | 677 | |||
Charge offs | (140) | (137) | (259) | (527) | |||
Recoveries | 28 | 19 | 42 | 34 | |||
Ending balance | 597 | 477 | 597 | 477 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 597 | 477 | |||||
Total | 594 | 424 | 588 | 293 | 597 | 588 | 477 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 187,049 | 121,572 | |||||
Total Loans Receivable | 187,049 | 171,604 | 121,572 | ||||
Unallocated [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 578 | 609 | 553 | 749 | |||
Provision (recovery) for loan losses | 43 | (261) | 68 | (401) | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 621 | 348 | 621 | 348 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 621 | 348 | |||||
Total | $ 578 | $ 609 | $ 553 | $ 749 | 621 | $ 553 | 348 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||||
Total Loans Receivable | $ 0 | $ 0 |
CREDIT DISCLSOURES - Asset Clas
CREDIT DISCLSOURES - Asset Classification of Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | $ 1,152,382 | $ 925,894 | $ 785,404 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,099,090 | 876,194 | |
Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 670 | 8,015 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 3,829 | 32,710 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 48,740 | 8,975 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 53 | 0 | |
1-4 Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 178,310 | 162,298 | 140,000 |
1-4 Family Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 176,844 | 161,255 | |
1-4 Family Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 537 | 200 | |
1-4 Family Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 660 | 666 | |
1-4 Family Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 269 | 177 | |
1-4 Family Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 473,058 | 422,932 | 354,794 |
Commercial and Multi-Family Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 471,748 | 421,577 | |
Commercial and Multi-Family Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 72 | 72 | |
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 204 | 962 | |
Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,034 | 321 | |
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 62,422 | 63,612 | 64,111 |
Agricultural Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 28,828 | 34,421 | |
Agricultural Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 2,934 | |
Agricultural Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 2,965 | 25,675 | |
Agricultural Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 30,629 | 582 | |
Agricultural Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 182,156 | 37,094 | 35,937 |
Consumer [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 182,156 | 37,094 | |
Consumer [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 33,894 | 31,271 | 26,909 |
Commercial Operating [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 33,572 | 30,574 | |
Commercial Operating [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 21 | 184 | |
Commercial Operating [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 248 | 513 | |
Commercial Operating [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 53 | 0 | |
Agricultural Operating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 35,493 | 37,083 | 42,081 |
Agricultural Operating [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 18,893 | 19,669 | |
Agricultural Operating [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 40 | 4,625 | |
Agricultural Operating [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 5,407 | |
Agricultural Operating [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 16,560 | 7,382 | |
Agricultural Operating [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 187,049 | 171,604 | $ 121,572 |
Premium Finance [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 187,049 | 171,604 | |
Premium Finance [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | $ 0 | $ 0 |
CREDIT DISCLSOURES - Past Due L
CREDIT DISCLSOURES - Past Due Loans (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 | Mar. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 50,666 | $ 3,226 | |
Current | 1,097,744 | 922,585 | |
Non-accrual loans | 3,972 | 83 | |
Total Loans Receivable | 1,152,382 | 925,894 | $ 785,404 |
30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 47,002 | 1,549 | |
60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,657 | 659 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,007 | 1,018 | |
1-4 Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 101 | 30 | |
Current | 178,097 | 162,185 | |
Non-accrual loans | 112 | 83 | |
Total Loans Receivable | 178,310 | 162,298 | 140,000 |
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 42 | 0 | |
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 59 | 30 | |
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,179 | 0 | |
Current | 469,724 | 422,932 | |
Non-accrual loans | 155 | 0 | |
Total Loans Receivable | 473,058 | 422,932 | 354,794 |
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,864 | 0 | |
Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 315 | 0 | |
Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 35,058 | 0 | |
Current | 23,903 | 63,612 | |
Non-accrual loans | 3,461 | 0 | |
Total Loans Receivable | 62,422 | 63,612 | 64,111 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 35,058 | 0 | |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 9,622 | 53 | |
Current | 172,534 | 37,041 | |
Non-accrual loans | 0 | 0 | |
Total Loans Receivable | 182,156 | 37,094 | 35,937 |
Consumer [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 8,009 | 0 | |
Consumer [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,329 | 0 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 284 | 53 | |
Commercial Operating [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 505 | |
Current | 33,747 | 30,766 | |
Non-accrual loans | 147 | 0 | |
Total Loans Receivable | 33,894 | 31,271 | 26,909 |
Commercial Operating [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 151 | |
Commercial Operating [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 354 | |
Commercial Operating [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Operating [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Current | 35,396 | 37,083 | |
Non-accrual loans | 97 | 0 | |
Total Loans Receivable | 35,493 | 37,083 | 42,081 |
Agricultural Operating [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Operating [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Operating [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Premium Finance [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,706 | 2,638 | |
Current | 184,343 | 168,966 | |
Non-accrual loans | 0 | 0 | |
Total Loans Receivable | 187,049 | 171,604 | $ 121,572 |
Premium Finance [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,029 | 1,398 | |
Premium Finance [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 954 | 275 | |
Premium Finance [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 723 | $ 965 |
CREDIT DISCLSOURES - Impaired L
CREDIT DISCLSOURES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | |
Loans without a specific valuation allowance | |||||
Recorded Balance | $ 2,968 | $ 2,968 | $ 517 | ||
Unpaid Principal Balance | 2,968 | 2,968 | 517 | ||
Loans with a specific valuation allowance | |||||
Recorded Balance | 380 | 380 | 78 | ||
Unpaid Principal Balance | 380 | 380 | 78 | ||
Specific Allowance | 65 | 65 | 10 | ||
Average Recorded Investment | 1,866 | $ 5,742 | 1,319 | $ 6,125 | |
1-4 Family Real Estate [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 170 | 170 | 84 | ||
Unpaid Principal Balance | 170 | 170 | 84 | ||
Loans with a specific valuation allowance | |||||
Recorded Balance | 78 | 78 | 78 | ||
Unpaid Principal Balance | 78 | 78 | 78 | ||
Specific Allowance | 12 | 12 | 10 | ||
Average Recorded Investment | 210 | 116 | 191 | 118 | |
Commercial and Multi-Family Real Estate [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 1,144 | 1,144 | 433 | ||
Unpaid Principal Balance | 1,144 | 1,144 | $ 433 | ||
Loans with a specific valuation allowance | |||||
Average Recorded Investment | 668 | 1,257 | 550 | 1,302 | |
Agricultural Real Estate [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 582 | 582 | |||
Unpaid Principal Balance | 582 | 582 | |||
Loans with a specific valuation allowance | |||||
Average Recorded Investment | 194 | 0 | 97 | 0 | |
Agricultural Operating [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 1,072 | 1,072 | |||
Unpaid Principal Balance | 1,072 | 1,072 | |||
Consumer Loans [Member] | |||||
Loans with a specific valuation allowance | |||||
Average Recorded Investment | 0 | 0 | 0 | 0 | |
Commercial Operating [Member] | |||||
Loans with a specific valuation allowance | |||||
Recorded Balance | 302 | 302 | |||
Unpaid Principal Balance | 302 | 302 | |||
Specific Allowance | 53 | 53 | |||
Average Recorded Investment | 437 | 7 | 302 | 8 | |
Agricultural Operating [Member] | |||||
Loans with a specific valuation allowance | |||||
Average Recorded Investment | 357 | 4,362 | 179 | 4,697 | |
Premium Finance [Member] | |||||
Loans with a specific valuation allowance | |||||
Average Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 |
CREDIT DISCLSOURES - Narrative
CREDIT DISCLSOURES - Narrative and Additional Information (Details) - USD ($) | 6 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of specific allowance for losses | 100.00% | |
Maturity period of fixed rate loans | 30 years | |
Annual cap of ARM loans | 2.00% | |
Lifetime cap of ARM loans | 6.00% | |
Total past due | $ 50,666,000 | $ 3,226,000 |
1-4 Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of loans receivable | 30 years | |
Total past due | $ 101,000 | 30,000 |
Commercial and Multi-Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan to value ratio | 80.00% | |
Maturity period of fixed rate loans | 20 years | |
Total past due | $ 3,179,000 | 0 |
Commercial Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total past due | $ 0 | 505,000 |
Agricultural Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of loans receivable | 1 year | |
Total past due | $ 0 | 0 |
Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total past due | $ 35,058,000 | 0 |
Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of fixed rate loans | 5 years | |
Total past due | $ 9,622,000 | 53,000 |
Premium Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Period of delay or shortfall in payments after which a loan is evaluated for impairment | 210 days | |
Typical period of delinquency | 210 days | |
Total past due | $ 2,706,000 | $ 2,638,000 |
Non-Premium Finance Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Period of delay or shortfall in payments after which a loan is evaluated for impairment | 90 days | |
Typical period of delinquency | 90 days | |
Maximum [Member] | 1-4 Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loan to value ratio | 100.00% | |
Exposure of the entity expressed in loan to value ratio | 80.00% | |
Maximum [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of loans receivable | 1 year | |
Percentage value for securing the loan | 80.00% | |
Maximum [Member] | Commercial Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of loans receivable | 1 year | |
Maximum [Member] | Agricultural Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of fixed rate loans | 7 years | |
Maximum [Member] | Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of fixed rate loans | 10 years | |
Period of amortization, loans | 25 years | |
Percentage value for securing the loan | 75.00% | |
Maximum [Member] | Consumer Loans [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage value for securing the loan | 90.00% | |
Maximum [Member] | Automobile Loan [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of loans receivable | 60 months | |
Percentage value for securing the loan | 80.00% | |
Maximum [Member] | Premium Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of down payment | 25.00% | |
Period of finance | 10 months | |
Period of conversion of collateral into cash | 210 days | |
Minimum [Member] | Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Maturity period of fixed rate loans | 5 years | |
Period of amortization, loans | 20 years | |
Minimum [Member] | Premium Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Percentage of down payment | 20.00% | |
Period of finance | 9 months | |
Period of conversion of collateral into cash | 60 days | |
Typical period of delinquency | 90 days | |
Financing Receivables, Equal to Greater than 210 Days Past Due [Member] | Premium Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total past due | $ 0 |
CREDIT DISCLSOURES - Troubled D
CREDIT DISCLSOURES - Troubled Debt Restructured Loans (Details) - loan | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | ||||
Loans modified in TDR | 0 | 0 | 0 | 0 |
Loans modified in TDR, subsequent default | 0 | 0 | 0 | 0 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | Sep. 30, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | |
Receivables [Abstract] | ||||||||
Allowance for loan losses | $ (14,602) | $ (14,602) | $ (5,635) | |||||
Financing Receivable, Allowance for Credit Losses | 14,602 | $ 7,431 | 14,602 | $ 7,431 | $ 6,415 | $ 6,666 | $ 6,255 | |
Increase in allowance from tax season loans | 8,200 | |||||||
Provision for loan losses | $ 8,649 | $ 1,173 | 9,492 | 1,959 | ||||
Net charge offs (recoveries) | $ 500 | $ 800 |
EARNINGS PER COMMON SHARE ("E42
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | |
Earnings Per Common Share, Basic and Diluted [Abstract] | ||||
Net income attributable to Meta Financial Group, Inc. | $ 32,142 | $ 14,283 | $ 33,386 | $ 18,341 |
Preferred Stock Dividends and Other Adjustments | 1,214 | 1,105 | 1,187 | 1,088 |
Net Income (Loss) Available to Common Stockholders, Basic | $ 30,928 | $ 13,178 | $ 32,199 | $ 17,253 |
Weighted average common shares outstanding (in shares) | 9,345,277 | 8,496,357 | 9,138,692 | 8,369,523 |
Basic (in dollars per share) | $ 3.44 | $ 1.68 | $ 3.65 | $ 2.19 |
Incremental Common Shares Attributable to Dilutive Effect of Share-based Payment Arrangements | 54,674 | 61,176 | 53,790 | 63,551 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 9,399,951 | 8,557,533 | 9,192,482 | 8,433,074 |
Diluted (in dollars per share) | $ 3.42 | $ 1.67 | $ 3.63 | $ 2.17 |
Accounting Standards Update 2015-06 [Member] | ||||
Earnings Per Common Share, Basic and Diluted [Abstract] | ||||
Basic (in dollars per share) | 1.68 | 2.19 | ||
Diluted (in dollars per share) | 1.67 | 2.17 | ||
As previously reported [Member] | Accounting Standards Update 2015-06 [Member] | ||||
Earnings Per Common Share, Basic and Diluted [Abstract] | ||||
Basic (in dollars per share) | 1.69 | 2.20 | ||
Diluted (in dollars per share) | $ 1.68 | $ 2.18 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Available-for-sale debt securities [Abstract] | ||
Fair value | $ 642,833 | $ 558,940 |
Available-for-sale equity securities [Abstract] | ||
Fair value | 1,184,440 | 910,309 |
Available-for-sale securities [Abstract] | ||
Amortized cost | 1,829,056 | 1,435,272 |
Gross unrealized gains | 11,042 | 37,257 |
Gross unrealized (losses) | (12,825) | (3,280) |
Total available for sale securities | 1,827,273 | 1,469,249 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 848,889 | 151,949 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (11,787) | (1,033) |
OVER 12 MONTHS, Fair Value | 36,119 | 52,770 |
OVER 12 MONTHS, Unrealized (Losses) | (1,038) | (2,247) |
TOTAL, Fair Value | 885,008 | 204,719 |
TOTAL, Unrealized (Losses) | (12,825) | (3,280) |
AMORTIZED COST | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 18,662 | 17,370 |
Due after five years through ten years | 444,661 | 426,034 |
Due after ten years | 712,822 | 436,077 |
Total | 1,176,145 | 879,481 |
Mortgage-backed securities | 651,784 | 555,036 |
Common equities and mutual funds | 1,127 | 755 |
Amortized cost | 1,829,056 | 1,435,272 |
FAIR VALUE | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 19,134 | 17,897 |
Due after five years through ten years | 450,446 | 446,771 |
Due after ten years | 713,305 | 444,516 |
Total | 1,182,885 | 909,184 |
Mortgage-backed securities | 642,833 | 558,940 |
Common equities and mutual funds | 1,555 | 1,125 |
Total available for sale securities | 1,827,273 | 1,469,249 |
Trust Preferred Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 14,935 | |
Gross unrealized gains | 0 | |
Gross unrealized (losses) | (1,957) | |
Fair value | 12,978 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 0 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | |
OVER 12 MONTHS, Fair Value | 12,978 | |
OVER 12 MONTHS, Unrealized (Losses) | (1,957) | |
TOTAL, Fair Value | 12,978 | |
TOTAL, Unrealized (Losses) | (1,957) | |
Small Business Administration Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 130,175 | 78,431 |
Gross unrealized gains | 1,173 | 2,288 |
Gross unrealized (losses) | 0 | 0 |
Fair value | 131,348 | 80,719 |
Non-bank Qualified Obligations of States and Political Subdivisions [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 927,959 | 668,628 |
Gross unrealized gains | 7,914 | 30,141 |
Gross unrealized (losses) | (3,863) | (97) |
Fair value | 932,010 | 698,672 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 239,208 | 8,481 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (3,722) | (58) |
OVER 12 MONTHS, Fair Value | 2,594 | 2,688 |
OVER 12 MONTHS, Unrealized (Losses) | (141) | (39) |
TOTAL, Fair Value | 241,802 | 11,169 |
TOTAL, Unrealized (Losses) | (3,863) | (97) |
Asset-backed Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 118,011 | 117,487 |
Gross unrealized gains | 1,516 | 73 |
Gross unrealized (losses) | 0 | (745) |
Fair value | 119,527 | 116,815 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 89,403 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (745) | |
OVER 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Fair Value | 89,403 | |
TOTAL, Unrealized (Losses) | (745) | |
Mortgage-backed Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 651,784 | 555,036 |
Gross unrealized gains | 0 | 4,382 |
Gross unrealized (losses) | (8,951) | (478) |
Fair value | 642,833 | 558,940 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 609,681 | 54,065 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (8,065) | (230) |
OVER 12 MONTHS, Fair Value | 33,152 | 36,979 |
OVER 12 MONTHS, Unrealized (Losses) | (886) | (248) |
TOTAL, Fair Value | 642,833 | 91,044 |
TOTAL, Unrealized (Losses) | (8,951) | (478) |
Debt Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 1,827,929 | 1,434,517 |
Gross unrealized gains | 10,603 | 36,884 |
Gross unrealized (losses) | (12,814) | (3,277) |
Fair value | 1,825,718 | 1,468,124 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 848,889 | 151,949 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (11,787) | (1,033) |
OVER 12 MONTHS, Fair Value | 35,746 | 52,645 |
OVER 12 MONTHS, Unrealized (Losses) | (1,027) | (2,244) |
TOTAL, Fair Value | 884,635 | 204,594 |
TOTAL, Unrealized (Losses) | (12,814) | (3,277) |
Common Equities and Mutual Funds [Member] | ||
Available-for-sale equity securities [Abstract] | ||
Amortized cost | 1,127 | 755 |
Gross unrealized gains | 439 | 373 |
Gross unrealized (losses) | (11) | (3) |
Fair value | 1,555 | 1,125 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 0 | 0 |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | 0 |
OVER 12 MONTHS, Fair Value | 373 | 125 |
OVER 12 MONTHS, Unrealized (Losses) | (11) | (3) |
TOTAL, Fair Value | 373 | 125 |
TOTAL, Unrealized (Losses) | $ (11) | $ (3) |
SECURITIES - Held to Maturity (
SECURITIES - Held to Maturity (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Held-to-maturity Securities [Abstract] | ||
Amortized cost | $ 596,803 | $ 619,853 |
Gross unrealized gains | 2,468 | 12,807 |
Gross unrealized (losses) | (4,848) | (86) |
Securities held to maturity | 594,423 | 632,574 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 416,915 | 24,264 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (4,828) | (55) |
OVER 12 MONTHS, Fair Value | 1,329 | 2,256 |
OVER 12 MONTHS, Unrealized (Losses) | (20) | (31) |
TOTAL, Fair Value | 418,244 | 26,520 |
TOTAL, Unrealized (Losses) | (4,848) | (86) |
AMORTIZED COST | ||
Due in one year or less | 341 | 472 |
Due after one year through five years | 17,723 | 12,502 |
Due after five years through ten years | 152,790 | 157,944 |
Due after ten years | 303,452 | 315,177 |
Total | 474,306 | 486,095 |
Mortgage-backed securities | 122,497 | 133,758 |
Amortized cost | 596,803 | 619,853 |
FAIR VALUE | ||
Due in one year or less | 340 | 471 |
Due after one year through five years | 17,814 | 12,696 |
Due after five years through ten years | 153,428 | 163,806 |
Due after ten years | 301,861 | 321,166 |
Total | 473,443 | 498,139 |
Mortgage-backed securities | 120,980 | 134,435 |
Total held to maturity securities | 594,423 | 632,574 |
Non-bank Qualified Obligations of States and Political Subdivisions [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized cost | 454,129 | 465,469 |
Gross unrealized gains | 2,397 | 11,744 |
Gross unrealized (losses) | (3,188) | (11) |
Securities held to maturity | 453,338 | 477,202 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 283,033 | 1,294 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (3,188) | (11) |
OVER 12 MONTHS, Fair Value | 0 | 0 |
OVER 12 MONTHS, Unrealized (Losses) | 0 | 0 |
TOTAL, Fair Value | 283,033 | 1,294 |
TOTAL, Unrealized (Losses) | (3,188) | (11) |
AMORTIZED COST | ||
Amortized cost | 454,129 | 465,469 |
FAIR VALUE | ||
Total held to maturity securities | 453,338 | 477,202 |
Mortgage-backed Securities [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized cost | 122,497 | 133,758 |
Gross unrealized gains | 0 | 708 |
Gross unrealized (losses) | (1,517) | (31) |
Securities held to maturity | 120,980 | 134,435 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 120,980 | 20,061 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (1,517) | (31) |
OVER 12 MONTHS, Fair Value | 0 | 0 |
OVER 12 MONTHS, Unrealized (Losses) | 0 | 0 |
TOTAL, Fair Value | 120,980 | 20,061 |
TOTAL, Unrealized (Losses) | (1,517) | (31) |
AMORTIZED COST | ||
Amortized cost | 122,497 | 133,758 |
FAIR VALUE | ||
Total held to maturity securities | 120,980 | 134,435 |
Obligations of States and Political Subdivisions [Member] | ||
Held-to-maturity Securities [Abstract] | ||
Amortized cost | 20,177 | 20,626 |
Gross unrealized gains | 71 | 355 |
Gross unrealized (losses) | (143) | (44) |
Securities held to maturity | 20,105 | 20,937 |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 12,902 | 2,909 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (123) | (13) |
OVER 12 MONTHS, Fair Value | 1,329 | 2,256 |
OVER 12 MONTHS, Unrealized (Losses) | (20) | (31) |
TOTAL, Fair Value | 14,231 | 5,165 |
TOTAL, Unrealized (Losses) | (143) | (44) |
AMORTIZED COST | ||
Amortized cost | 20,177 | 20,626 |
FAIR VALUE | ||
Total held to maturity securities | $ 20,105 | $ 20,937 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | Jan. 07, 2016USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2017USD ($) | Oct. 14, 2016USD ($) | Sep. 30, 2016USD ($) | Sep. 30, 2015company |
Loss Contingencies [Line Items] | ||||||
Number of federal district courts | company | 3 | |||||
Number of identified limited liability companies | company | 3 | |||||
Damages awarded | $ 6,100,000 | |||||
Unfunded loan commitments | $ 236,300,000 | $ 182,900,000 | ||||
Inter National Bank [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Amount of shortfall in depository account | $ 10,500,000 | |||||
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member] | ||||||
Loss Contingencies [Line Items] | ||||||
Estimate of possible loss | $ 1,579,398 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended |
Mar. 31, 2017USD ($)Officers$ / sharesshares | Mar. 31, 2017USD ($)$ / sharesshares | Sep. 30, 2016USD ($)$ / sharesshares | |
Number of Shares | |||
Options outstanding, beginning of period (in shares) | shares | 125,560 | ||
Granted (in shares) | shares | 0 | ||
Exercised (in shares) | shares | (26,352) | ||
Forfeited or expired (in shares) | shares | (16,252) | ||
Options outstanding, end of period (in shares) | shares | 82,956 | 82,956 | 125,560 |
Options exercisable, end of period (in shares) | shares | 82,956 | 82,956 | |
Weighted Average Exercise Price | |||
Options outstanding, beginning of period (in dollars per share) | $ / shares | $ 25.73 | ||
Granted (in dollars per share) | $ / shares | 0 | ||
Exercised (in dollars per share) | $ / shares | 32.63 | ||
Forfeited or expired (in dollars per share) | $ / shares | 24.61 | ||
Options outstanding, end of period (in dollars per share) | $ / shares | $ 23.76 | 23.76 | $ 25.73 |
Options exercisable, end of period (in dollars per share) | $ / shares | $ 23.76 | $ 23.76 | |
Weighted Average Remaining Contractual Term | |||
Options outstanding | 2 years 6 months 29 days | 2 years 8 months 5 days | |
Options exercisable | 2 years 6 months 29 days | ||
Aggregate Intrinsic Value | |||
Options outstanding, beginning of period | $ | $ 4,379 | ||
Granted | $ | |||
Exercised | $ | 1,682 | ||
Forfeited or expired | $ | 1,272 | ||
Options outstanding, end of period | $ | $ 5,371 | 5,371 | $ 4,379 |
Options exercisable, end of period | $ | $ 5,371 | $ 5,371 | |
Number of Shares | |||
Nonvested shares outstanding, beginning of period (in shares) | shares | 20,656 | ||
Granted (in shares) | shares | 306,603 | ||
Vested (in shares) | shares | (20,629) | ||
Forfeited or expired (in shares) | shares | (442) | ||
Nonvested shares outstanding, end of period (in shares) | shares | 306,188 | 306,188 | 20,656 |
Weighted Average Fair Value at Grant | |||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ / shares | $ 41.37 | ||
Granted (in dollars per share) | $ / shares | 87.91 | ||
Vested (in dollars per share) | $ / shares | 72.34 | ||
Forfeited or expired (in dollars per share) | $ / shares | 56.25 | ||
Nonvested shares outstanding, end of period (in dollars per share) | $ / shares | $ 85.86 | $ 85.86 | $ 41.37 |
Number of Company's Named Executive Officers with stock awards | Officers | 3 | ||
Executive award vesting period | 8 years | ||
Stock based compensation expense not yet recognized in income | $ | $ 21,400 | $ 21,400 | |
Weighted average remaining period for unrecognized stock based compensation | 4 years 18 days |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Sep. 30, 2016 | |
Segment data [Abstract] | |||||
Total interest and dividend income | $ 27,718 | $ 20,629 | $ 50,293 | $ 38,904 | |
Interest expense | 3,752 | 691 | 6,494 | 1,411 | |
Net interest income (expense) | 23,966 | 19,938 | 43,799 | 37,493 | |
Provision for loan losses | 8,649 | 1,173 | 9,492 | 1,959 | |
Non-interest income | 92,170 | 40,901 | 111,519 | 57,735 | |
Non-interest expense | 66,946 | 41,790 | 103,699 | 71,798 | |
Income before income tax expense | 40,541 | 17,876 | 42,127 | 21,471 | |
Total assets | 3,985,596 | 3,071,742 | 3,985,596 | 3,071,742 | $ 4,006,419 |
Total deposits | 2,872,231 | 2,220,761 | 2,872,231 | 2,220,761 | $ 2,430,082 |
Payments [Member] | |||||
Segment data [Abstract] | |||||
Total interest and dividend income | 3,312 | 2,633 | 6,224 | 4,597 | |
Interest expense | 503 | 54 | 503 | 94 | |
Net interest income (expense) | 2,809 | 2,579 | 5,721 | 4,503 | |
Provision for loan losses | 7,883 | 953 | 8,214 | 1,033 | |
Non-interest income | 90,462 | 39,591 | 109,487 | 54,943 | |
Non-interest expense | 41,452 | 25,720 | 62,324 | 41,737 | |
Income before income tax expense | 43,936 | 15,497 | 44,670 | 16,676 | |
Total assets | 74,194 | 53,020 | 74,194 | 53,020 | |
Total deposits | 2,606,674 | 2,014,548 | 2,606,674 | 2,014,548 | |
Banking [Member] | |||||
Segment data [Abstract] | |||||
Total interest and dividend income | 12,807 | 8,949 | 23,562 | 17,800 | |
Interest expense | 672 | 316 | 1,215 | 569 | |
Net interest income (expense) | 12,135 | 8,633 | 22,347 | 17,231 | |
Provision for loan losses | 766 | 220 | 1,278 | 926 | |
Non-interest income | 1,387 | 899 | 2,458 | 1,955 | |
Non-interest expense | 5,958 | 5,218 | 11,514 | 10,646 | |
Income before income tax expense | 6,798 | 4,094 | 12,013 | 7,614 | |
Total assets | 1,145,054 | 781,380 | 1,145,054 | 781,380 | |
Total deposits | 228,805 | 206,213 | 228,805 | 206,213 | |
Corporate Services/Other [Member] | |||||
Segment data [Abstract] | |||||
Total interest and dividend income | 11,599 | 9,047 | 20,507 | 16,507 | |
Interest expense | 2,577 | 321 | 4,776 | 748 | |
Net interest income (expense) | 9,022 | 8,726 | 15,731 | 15,759 | |
Provision for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income | 321 | 411 | (426) | 837 | |
Non-interest expense | 19,536 | 10,852 | 29,861 | 19,415 | |
Income before income tax expense | (10,193) | (1,715) | (14,556) | (2,819) | |
Total assets | 2,766,348 | 2,237,342 | 2,766,348 | 2,237,342 | |
Total deposits | $ 36,752 | $ 0 | $ 36,752 | $ 0 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Available-for-sale Securities [Abstract] | ||
Total debt securities | $ 642,833 | $ 558,940 |
Total available for sale securities | 1,827,273 | 1,469,249 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 594,423 | 632,574 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | 76 |
Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 1,555 | 1,125 |
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] | 1-4 Family Real Estate [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 [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 | 1,825,718 | 1,468,124 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 594,423 | 632,574 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | 1-4 Family Real Estate [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 [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 | 1,141,191 | 926,803 |
Level 3 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 176,879 | 163,886 |
Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 464,071 | 422,307 |
Level 3 [Member] | Agricultural Operating [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 35,394 | 36,897 |
Level 3 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 181,687 | 36,738 |
Level 3 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 34,004 | 31,108 |
Recurring [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 12,978 | |
Small business administration securities | 131,348 | 80,719 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 932,010 | 698,672 |
Asset-baked securities | 119,527 | 116,815 |
Mortgage-backed securities | 642,833 | 558,940 |
Total debt securities | 1,825,718 | 1,468,124 |
Common equities and mutual funds | 1,555 | 1,125 |
Total available for sale securities | 1,827,273 | 1,469,249 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 0 | |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 20,105 | 20,937 |
Non-bank qualified obligations of states and political subdivisions | 453,338 | 477,202 |
Asset-backed securities | 0 | 0 |
Mortgage-backed securities | 120,980 | 134,435 |
Total debt securities | 594,423 | 632,574 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 594,423 | 632,574 |
Recurring [Member] | Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 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-baked securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 1,555 | 1,125 |
Total available for sale securities | 1,555 | 1,125 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 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 | 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 | 12,978 | |
Small business administration securities | 131,348 | 80,719 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 932,010 | 698,672 |
Asset-baked securities | 119,527 | 116,815 |
Mortgage-backed securities | 642,833 | 558,940 |
Total debt securities | 1,825,718 | 1,468,124 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 1,825,718 | 1,468,124 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred securities | 0 | |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 20,105 | 20,937 |
Non-bank qualified obligations of states and political subdivisions | 453,338 | 477,202 |
Asset-backed securities | 0 | 0 |
Mortgage-backed securities | 120,980 | 134,435 |
Total debt securities | 594,423 | 632,574 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 594,423 | 632,574 |
Recurring [Member] | Level 3 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred securities | 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-baked securities | 0 | 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 | |
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 | 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 | 315 | 144 |
Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 315 | |
Nonrecurring [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 67 | |
Nonrecurring [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 68 | |
Nonrecurring [Member] | Agricultural Operating [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 68 | |
Nonrecurring [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 248 | |
Nonrecurring [Member] | Foreclosed Assets [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | 76 |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 1 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 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 | |
Nonrecurring [Member] | Level 1 [Member] | Agricultural Operating [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 1 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 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] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 2 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 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 | |
Nonrecurring [Member] | Level 2 [Member] | Agricultural Operating [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 2 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 315 | 144 |
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 315 | |
Nonrecurring [Member] | Level 3 [Member] | 1-4 Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 67 | |
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 | 68 | |
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 68 | |
Nonrecurring [Member] | Level 3 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 248 | |
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | $ 0 | $ 76 |
FAIR VALUE MEASUREMENTS FAIR VA
FAIR VALUE MEASUREMENTS FAIR VALUE MEASUREMENTS - Contingent Consideration (Details) - Nonrecurring [Member] - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent Consideration | $ 17,252 | $ 0 |
Total liabilities | 17,252 | 0 |
Level 1 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent Consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 2 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent Consideration | 0 | 0 |
Total liabilities | 0 | 0 |
Level 3 [Member] | ||
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent Consideration | 17,252 | 0 |
Total liabilities | $ 17,252 | $ 0 |
FAIR VALUE MEASUREMENTS - Quant
FAIR VALUE MEASUREMENTS - Quantitative Information (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Mar. 31, 2017 | Sep. 30, 2016 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair Value Inputs, Discount Rate | 7.20% | |
Fair Value Assumptions, Risk Free Interest Rate | 1.02% | |
Fair Value Inputs, Company Specific Discount Rate | 1.76% | |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of estimated selling cost | 4.00% | |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Range of estimated selling cost | 10.00% | |
Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 1,141,191 | $ 926,803 |
Impaired Loans, Net [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 315 | 68 |
Foreclosed Assets [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | 0 | 76 |
Contingent Consideration [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | ||
Fair value | $ 17,252 | $ 0 |
FAIR VALUE MEASUREMENTS - Balan
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Sep. 30, 2016 |
Financial assets [Abstract] | ||
Securities available for sale | $ 1,827,273 | $ 1,469,249 |
Securities held to maturity | 594,423 | 632,574 |
Financial liabilities [Abstract] | ||
Long-term debt | 92,497 | 92,460 |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 67,293 | 773,830 |
Securities available for sale | 1,555 | 1,125 |
Securities held to maturity | 0 | 0 |
Total securities | 1,555 | 1,125 |
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 20,902 | 17,199 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,637,167 | 2,167,522 |
Interest bearing demand deposits, savings, and money markets | 151,971 | 136,568 |
Certificates of deposit | 0 | 0 |
Deposits, Wholesale, Non-Maturing | 21,923 | |
Total deposits | 2,811,061 | 2,304,090 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal fund purchased | 992,000 | |
Securities sold under agreements to repurchase | 0 | 0 |
Long-term debt | 0 | 0 |
Trust Preferred Securities | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 722 | 875 |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,825,718 | 1,468,124 |
Securities held to maturity | 594,423 | 632,574 |
Total securities | 2,420,141 | 2,100,698 |
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 25,043 | 47,512 |
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 | 60,689 | 125,772 |
Deposits, Wholesale, Non-Maturing | 0 | |
Total deposits | 60,689 | 125,772 |
Advances from Federal Home Loan Bank | 7,891 | 108,168 |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 1,848 | 3,039 |
Long-term debt | 1,980 | 2,018 |
Trust Preferred Securities | 10,446 | 10,437 |
Subordinated debentures | 75,375 | 77,250 |
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 | 1,141,191 | 926,803 |
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 |
Deposits, Wholesale, Non-Maturing | 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 |
Long-term debt | 0 | 0 |
Trust Preferred Securities | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 67,293 | 773,830 |
Securities available for sale | 1,827,273 | 1,469,249 |
Securities held to maturity | 596,803 | 619,853 |
Total securities | 2,424,076 | 2,089,102 |
Loans receivable [Abstract] | ||
Total loans receivable | 1,152,382 | 925,894 |
Federal Home Loan Bank stock | 25,043 | 47,512 |
Accrued interest receivable | 20,902 | 17,199 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,637,167 | 2,167,522 |
Interest bearing demand deposits, savings, and money markets | 151,971 | 136,568 |
Certificates of deposit | 61,170 | 125,992 |
Deposits, Wholesale, Non-Maturing | 21,923 | |
Total deposits | 2,872,231 | 2,430,082 |
Advances from Federal Home Loan Bank | 7,000 | 107,000 |
Federal fund purchased | 992,000 | |
Securities sold under agreements to repurchase | 1,848 | 3,039 |
Long-term debt | 1,980 | 2,018 |
Trust Preferred Securities | 10,310 | 10,310 |
Subordinated debentures | 73,278 | 73,211 |
Accrued interest payable | 722 | 875 |
Estimated Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 67,293 | 773,830 |
Securities available for sale | 1,827,273 | 1,469,249 |
Securities held to maturity | 594,423 | 632,574 |
Total securities | 2,421,696 | 2,101,823 |
Loans receivable [Abstract] | ||
Total loans receivable | 1,141,191 | 926,803 |
Federal Home Loan Bank stock | 25,043 | 47,512 |
Accrued interest receivable | 20,902 | 17,199 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,637,167 | 2,167,522 |
Interest bearing demand deposits, savings, and money markets | 151,971 | 136,568 |
Certificates of deposit | 60,689 | 125,772 |
Deposits, Wholesale, Non-Maturing | 21,923 | |
Total deposits | 2,871,750 | 2,429,862 |
Advances from Federal Home Loan Bank | 7,891 | 108,168 |
Federal fund purchased | 992,000 | |
Securities sold under agreements to repurchase | 1,848 | 3,039 |
Long-term debt | 1,980 | 2,018 |
Trust Preferred Securities | 10,446 | 10,437 |
Subordinated debentures | 75,375 | 77,250 |
Accrued interest payable | 722 | 875 |
1-4 Family Real Estate [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
1-4 Family Real Estate [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
1-4 Family Real Estate [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 176,879 | 163,886 |
1-4 Family Real Estate [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 178,310 | 162,298 |
1-4 Family Real Estate [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 176,879 | 163,886 |
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 | 464,071 | 422,307 |
Commercial and Multi-family Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 473,058 | 422,932 |
Commercial and Multi-family Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 464,071 | 422,307 |
Agricultural Real Estate [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 58,829 | 63,868 |
Agricultural Real Estate [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 62,422 | 63,612 |
Agricultural Real Estate [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 58,829 | 63,868 |
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 | 181,687 | 36,738 |
Consumer Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 182,156 | 37,094 |
Consumer Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 181,687 | 36,738 |
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 | 34,004 | 31,108 |
Commercial Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 33,894 | 31,271 |
Commercial Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 34,004 | 31,108 |
Agricultural Operating [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,394 | 36,897 |
Agricultural Operating [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,493 | 37,083 |
Agricultural Operating [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,394 | 36,897 |
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 | 190,327 | 172,000 |
Premium Finance Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 187,049 | 171,604 |
Premium Finance Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | $ 190,327 | $ 172,000 |
GOODWILL AND INTANGIBLE ASSET52
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 14, 2016 | Nov. 01, 2016 | Mar. 31, 2016 | Sep. 08, 2015 | Dec. 02, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 98,723 | $ 36,928 | $ 36,928 | $ 36,928 | $ 98,723 | $ 36,928 | ||||
Goodwill [Roll Forward] | ||||||||||
Balance, beginning of period | 36,928 | 36,928 | ||||||||
Acquisitions during the period | 61,795 | 0 | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 98,723 | 36,928 | 98,723 | 36,928 | ||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 28,921 | 33,577 | ||||||||
Acquisitions during the period | 46,319 | 123 | ||||||||
Amortization of Intangible Assets | (8,607) | (2,428) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 66,633 | 31,272 | 66,633 | 31,272 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Amount Upon Acquisition | 81,706 | 35,338 | ||||||||
Amortization during the period | (15,073) | (4,066) | ||||||||
Total anticipated intangible amortization | 66,633 | 31,272 | 28,921 | 33,577 | 66,633 | 31,272 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Remaining in 2017 | 3,740 | |||||||||
2,018 | 11,852 | |||||||||
2,019 | 9,070 | |||||||||
2,020 | 7,289 | |||||||||
2,021 | 6,336 | |||||||||
2,022 | 5,029 | |||||||||
Thereafter | 23,317 | |||||||||
Total anticipated intangible amortization | 66,633 | 31,272 | 28,921 | 33,577 | 66,633 | 31,272 | ||||
Impairment of intangible assets | 0 | 0 | 0 | 0 | ||||||
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 | $ 31,400 | $ 30,400 | $ 25,400 | |||||||
Trademark [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 5,149 | 5,439 | ||||||||
Acquisitions during the period | 5,500 | 0 | ||||||||
Amortization of Intangible Assets | (282) | (144) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 10,367 | 5,295 | 10,367 | 5,295 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Amount Upon Acquisition | 10,990 | 5,490 | ||||||||
Amortization during the period | (623) | (195) | ||||||||
Total anticipated intangible amortization | 10,367 | 5,295 | 5,149 | 5,439 | 10,367 | 5,295 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 10,367 | 5,295 | 5,149 | 5,439 | 10,367 | 5,295 | ||||
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 5 years | |||||||||
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 15 years | |||||||||
Non-Compete [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 127 | 227 | ||||||||
Acquisitions during the period | 2,180 | 0 | ||||||||
Amortization of Intangible Assets | (228) | (50) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | $ 2,079 | 177 | 2,079 | 177 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Amount Upon Acquisition | 2,480 | 300 | ||||||||
Amortization during the period | (401) | (123) | ||||||||
Total anticipated intangible amortization | 2,079 | 177 | 127 | 227 | 2,079 | 177 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 2,079 | 177 | 127 | 227 | 2,079 | 177 | ||||
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 3 years | |||||||||
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 5 years | |||||||||
Customer Relationships [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 20,590 | 24,811 | ||||||||
Acquisitions during the period | 31,770 | 0 | ||||||||
Amortization of Intangible Assets | (7,735) | (2,127) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | $ 44,625 | 22,684 | 44,625 | 22,684 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Amount Upon Acquisition | 57,810 | 26,040 | ||||||||
Amortization during the period | (13,185) | (3,356) | ||||||||
Total anticipated intangible amortization | 44,625 | 22,684 | 20,590 | 24,811 | 44,625 | 22,684 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 44,625 | 22,684 | 20,590 | 24,811 | 44,625 | 22,684 | ||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 10 years | |||||||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 30 years | |||||||||
Other [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 3,055 | 3,100 | ||||||||
Acquisitions during the period | 6,869 | 123 | ||||||||
Amortization of Intangible Assets | (362) | (107) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | $ 9,562 | 3,116 | 9,562 | 3,116 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Amount Upon Acquisition | 10,426 | 3,508 | ||||||||
Amortization during the period | (864) | (392) | ||||||||
Total anticipated intangible amortization | 9,562 | 3,116 | 3,055 | 3,100 | 9,562 | 3,116 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 9,562 | $ 3,116 | $ 3,055 | $ 3,100 | $ 9,562 | $ 3,116 | ||||
Other [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 3 years | |||||||||
Other [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 20 years |