Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2017 | Nov. 24, 2017 | Mar. 31, 2017 | |
Document and Entity Information [Abstract] | |||
Entity Registrant Name | META FINANCIAL GROUP INC | ||
Entity Central Index Key | 907,471 | ||
Current Fiscal Year End Date | --09-30 | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Public Float | $ 762.6 | ||
Entity Common Stock, Shares Outstanding | 9,666,462 | ||
Document Fiscal Year Focus | 2,017 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2017 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
ASSETS | ||
Cash and cash equivalents | $ 1,267,586 | $ 773,830 |
Investment securities available-for-sale | 1,106,977 | 910,309 |
Mortgage-backed securities available-for-sale | 586,454 | 558,940 |
Investment securities held to maturity | 449,840 | 486,095 |
Mortgage-backed securities held to maturity | 113,689 | 133,758 |
Loans receivable | 1,325,371 | 925,105 |
Allowance for loan losses | (7,534) | (5,635) |
Federal Home Loan Bank stock, at cost | 61,123 | 47,512 |
Accrued interest receivable | 19,380 | 17,199 |
Premises, furniture, and equipment, net | 19,320 | 18,626 |
Bank-owned life insurance | 84,702 | 57,486 |
Foreclosed real estate and repossessed assets | 292 | 76 |
Goodwill | 98,723 | 36,928 |
Intangible assets | 52,178 | 28,921 |
Prepaid assets | 28,392 | 9,443 |
Deferred taxes | 9,101 | 0 |
Other assets | 12,738 | 7,826 |
Total assets | 5,228,332 | 4,006,419 |
LIABILITIES | ||
Non-interest-bearing checking | 2,454,057 | 2,167,522 |
Interest-bearing checking | 67,294 | 38,077 |
Savings deposits | 53,505 | 50,742 |
Money market deposits | 48,758 | 47,749 |
Time certificates of deposit | 123,637 | 125,992 |
Wholesale deposits | 476,173 | 0 |
Total deposits | 3,223,424 | 2,430,082 |
Short-term debt | 1,404,534 | 1,095,118 |
Long-term debt | 85,533 | 92,460 |
Accrued interest payable | 2,280 | 875 |
Deferred taxes | 0 | 4,600 |
Accrued expenses and other liabilities | 78,065 | 48,309 |
Total liabilities | 4,793,836 | 3,671,444 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at September 30, 2017 and 2016, respectively | 0 | 0 |
Common stock | 96 | 85 |
Additional paid-in capital | 258,336 | 184,780 |
Retained earnings | 167,164 | 127,190 |
Accumulated other comprehensive income | 9,166 | 22,920 |
Treasury stock, at cost, 3,836 common shares at September 30, 2017 and none at September 30, 2016 | (266) | 0 |
Total stockholders’ equity | 434,496 | 334,975 |
Total liabilities and stockholders’ equity | 5,228,332 | 4,006,419 |
Nonvoting Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | $ 0 | $ 0 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares | Sep. 30, 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, 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) | 9,626,431 | 8,523,641 |
Common stock, shares outstanding (in shares) | 9,622,595 | 8,523,641 |
Treasury stock (in shares) | 3,836 | 0 |
Nonvoting Common Stock [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 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||
Interest and dividend income: | ||||
Loans receivable, including fees | $ 52,117 | $ 36,187 | $ 29,565 | |
Mortgage-backed securities | 16,571 | 15,771 | 13,979 | |
Other investments | 39,415 | 29,438 | 18,063 | |
Total interest and dividend income | 108,103 | 81,396 | 61,607 | |
Interest expense: | ||||
Deposits | 6,051 | 614 | 726 | |
FHLB advances and other borrowings | 8,822 | 3,477 | 1,661 | |
Total interest expense | 14,873 | 4,091 | 2,387 | |
Net interest income | 93,230 | 77,305 | 59,220 | |
Provision for loan losses | 10,589 | 4,605 | 1,465 | |
Net interest income after provision for loan losses | 82,641 | 72,700 | 57,755 | |
Non-interest income: | ||||
Refund transfer product fees | 38,956 | 23,347 | 63 | |
Tax advance product fees | 31,913 | 1,575 | 0 | |
Card fees | 94,707 | 70,533 | 54,542 | |
Loan fees | 3,882 | 3,374 | 2,348 | |
Bank-owned life insurance income | 2,216 | 1,656 | 2,030 | |
Deposit fees | 736 | 603 | 593 | |
Loss on sale of securities available-for-sale, net (Includes ($493), ($326), and ($1,634) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the fiscal years ended September 30, 2017, 2016 and 2015, respectively) | (493) | (326) | (1,634) | |
Loss (gain) on foreclosed real estate | (6) | 0 | 28 | |
Other income | 261 | 8 | 204 | |
Total non-interest income | 172,172 | 100,770 | 58,174 | |
Non-interest expense: | ||||
Compensation and benefits | 88,728 | 61,675 | 46,493 | |
Refund transfer product expense | 11,885 | 8,648 | 3 | |
Tax advance product expense | 3,241 | 0 | 0 | |
Card processing expense | 24,130 | 22,263 | 16,508 | |
Occupancy and equipment expense | 16,465 | 13,999 | 11,399 | |
Legal and consulting expense | 8,384 | 4,824 | 4,978 | |
Marketing | 1,449 | 1,334 | 1,347 | |
Data processing expense | 2,117 | 1,972 | 1,537 | |
Amortization expense | 12,362 | 4,828 | 1,349 | |
Intangible impairment | 10,248 | 0 | 0 | |
Other expense | 20,654 | 15,105 | 12,892 | |
Total non-interest expense | 199,663 | 134,648 | 96,506 | |
Income before income tax expense | 55,150 | 38,822 | 19,423 | |
Income tax expense (Includes ($185), ($118), and ($597) income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2017, 2016 and 2015, respectively) | 10,233 | 5,602 | 1,368 | |
Net Income | $ 44,917 | $ 33,220 | $ 18,055 | |
Earnings per common share (1): | ||||
Basic (in dollars per share) | [1] | $ 4.86 | $ 3.93 | $ 2.68 |
Diluted (in dollars per share) | [1] | $ 4.83 | 3.91 | $ 2.66 |
Accounting Standards Update 2015-06 [Member] | ||||
Earnings per common share (1): | ||||
Basic (in dollars per share) | 3.93 | |||
Diluted (in dollars per share) | 3.91 | |||
Accounting Standards Update 2015-06 [Member] | Scenario, Previously Reported [Member] | ||||
Earnings per common share (1): | ||||
Basic (in dollars per share) | 3.95 | |||
Diluted (in dollars per share) | $ 3.92 | |||
[1] | See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91. |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Non-interest income: | |||
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ (493) | $ (326) | $ (1,634) |
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) | $ (185) | $ (118) | $ (597) |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 44,917 | $ 33,220 | $ 18,055 |
Other comprehensive (loss) income: | |||
Change in net unrealized gain on securities | (21,661) | 31,965 | 7,723 |
Losses realized in net income | 493 | 326 | 1,634 |
Total available for sale adjustment | (21,168) | 32,291 | 9,357 |
Deferred income tax effect | (7,414) | 11,826 | 3,493 |
Total other comprehensive (loss) income | (13,754) | 20,465 | 5,864 |
Total comprehensive income | $ 31,163 | $ 53,685 | $ 23,919 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss), Net of Tax [Member] | Treasury Stock [Member] |
Balance at the beginning of the period at Sep. 30, 2014 | $ 174,802 | $ 62 | $ 95,079 | $ 83,797 | $ (3,409) | $ (727) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock ($0.52 per share) | (3,493) | (3,493) | ||||
Issuance of common shares due to issuance of stock options and restricted stock | 378 | 378 | ||||
Issuance of common shares due to acquisition | 24,303 | 6 | 24,297 | |||
Issuance of common shares from the sales of equity securities | 51,168 | 14 | 50,737 | 417 | ||
Stock compensation | 258 | 258 | ||||
Net change in unrealized gains (losses) on securities, net of income taxes | 5,864 | 5,864 | ||||
Net income | 18,055 | 18,055 | ||||
Balance at the end of the period 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 ($0.52 per share) | (4,389) | (4,389) | ||||
Issuance of common shares due to issuance of stock options and restricted stock | 2,357 | 1 | 2,046 | 310 | ||
Issuance of common shares due to acquisition | 0 | |||||
Issuance of common shares from the sales of equity securities | 11,500 | 2 | 11,498 | |||
Stock compensation | 487 | 487 | ||||
Net change in unrealized gains (losses) on securities, net of income taxes | 20,465 | 20,465 | ||||
Net income | 33,220 | 33,220 | ||||
Balance at the end of the period at Sep. 30, 2016 | 334,975 | 85 | 184,780 | 127,190 | 22,920 | 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of Accounting Standards Update 2016-09 | 0 | 104 | (104) | |||
Cash dividends declared on common stock ($0.52 per share) | (4,839) | (4,839) | ||||
Issuance of common shares due to issuance of stock options and restricted stock | 650 | 650 | ||||
Issuance of common shares due to restricted stock | 4 | 4 | ||||
Issuance of common shares due to acquisition | 37,296 | 7 | ||||
Issuance of common shares due to ESOP | 1,174 | 1,174 | ||||
Issuance of common shares from the sales of equity securities | 37,296 | 37,289 | ||||
Contingent consideration equity earnout due to acquisition | 24,142 | 24,142 | ||||
Shares repurchased for tax withholdings on stock compensation | (470) | (204) | (266) | |||
Stock compensation | 10,401 | 10,401 | ||||
Net change in unrealized gains (losses) on securities, net of income taxes | (13,754) | (13,754) | ||||
Net income | 44,917 | 44,917 | ||||
Balance at the end of the period at Sep. 30, 2017 | $ 434,496 | $ 96 | $ 258,336 | $ 167,164 | $ 9,166 | $ (266) |
CONSOLIDATED STATEMENTS OF CHA8
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash dividends declared on common stock (in dollars per share) | $ 0.52 | $ 0.52 | $ 0.52 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Cash flows from operating activities: | |||
Net income | $ 44,917 | $ 33,220 | $ 18,055 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation, amortization and accretion, net | 45,048 | 35,617 | 28,882 |
Stock compensation | 10,401 | 487 | 258 |
Provision for loan losses | 10,589 | 4,605 | 1,465 |
Recovery for deferred taxes | (6,286) | (230) | (3,896) |
Loss on other assets | 406 | 104 | 6 |
Loss (Gain) on foreclosed real estate | 6 | 0 | (28) |
Loss on sale of securities available-for-sale, net | 537 | 326 | 1,634 |
Gain on sale of securities held-to-maturity, net | (44) | 0 | 0 |
Net change in accrued interest receivable | (2,181) | (3,847) | (2,130) |
Impairment of intangibles | 10,248 | 0 | 0 |
Fair value adjustment of foreclosed real estate | 18 | 0 | 0 |
Originations of loans held for sale | (685,934) | 0 | 0 |
Proceeds from sales of loans held for sale | 685,934 | 0 | 0 |
Change in bank-owned life insurance value | (2,216) | (1,656) | (1,225) |
Net change in other assets | (23,408) | (1,968) | (672) |
Net change in accrued interest payable | 1,405 | 603 | (46) |
Excess contingent consideration paid | (248) | 0 | 0 |
Net change in accrued expenses and other liabilities | 30,806 | 11,237 | 6,911 |
Net cash provided by operating activities | 119,998 | 78,498 | 49,214 |
Cash flows from investing activities: | |||
Purchase of securities available-for-sale | (848,613) | (603,995) | (810,624) |
Proceeds from sales of securities available-for-sale | 457,306 | 285,508 | 566,371 |
Proceeds from maturities and principal repayments of securities available-for-sale | 126,420 | 116,333 | 124,558 |
Purchase of securities held to maturity | (932) | (298,869) | (72,759) |
Proceeds from sales of securities held-to-maturity | 5,870 | 0 | 0 |
Proceeds from maturities and principal repayments of securities held to maturity | 45,615 | 20,465 | 9,879 |
Purchase of bank-owned life insurance | (25,000) | (10,000) | (10,000) |
Proceeds from bank-owned life insurance death benefit | 0 | 0 | 864 |
Loans purchased | (141,403) | 0 | 0 |
Proceeds from loans sold | 4,720 | 89 | 5,462 |
Net change in loans receivable | (274,840) | (217,985) | (146,111) |
Proceeds from sales of foreclosed real estate | 200 | 0 | 86 |
Cash paid for acquisitions | (29,425) | 0 | (125,314) |
Cash received upon acquisitions | 0 | 0 | 9,768 |
Federal Home Loan Bank stock purchases | (715,891) | (860,902) | (544,324) |
Federal Home Loan Bank stock redemptions | 702,280 | 837,800 | 541,160 |
Proceeds from the sale of premises and equipment | 58 | 55 | 2,100 |
Purchase of premises and equipment | (6,798) | (6,979) | (5,031) |
Net cash used in investing activities | (700,433) | (738,480) | (453,915) |
Cash flows from financing activities: | |||
Net change in checking, savings, and money market deposits | 319,524 | 737,727 | 334,375 |
Net change in time deposits | (2,355) | 34,821 | (43,382) |
Net change in wholesale deposits | 476,173 | 0 | 0 |
Net change of FHLB and other borrowings | 308,000 | 100,000 | 0 |
Net change in federal funds | (5,000) | 452,000 | 70,000 |
Net change in securities sold under agreements to repurchase | (565) | (969) | (6,404) |
Proceeds from long term debt | 0 | 75,000 | 0 |
Payment of debt issuance costs | 0 | (1,767) | 0 |
Payment of debt extinguishment costs | (772) | 0 | 0 |
Principal payments on capital lease obligations | (80) | (126) | (116) |
Cash dividends paid | (4,839) | (4,389) | (3,493) |
Purchase of shares by ESOP | 1,174 | 0 | 0 |
Issuance of restricted stock | 4 | 0 | 0 |
Proceeds from exercise of stock options and issuance of common stock | 650 | 13,857 | 51,547 |
Shares repurchased for tax withholdings on stock compensation | (470) | 0 | 0 |
Contingent consideration - cash paid | (17,253) | 0 | 0 |
Net cash provided by financing activities | 1,074,191 | 1,406,154 | 402,527 |
Net change in cash and cash equivalents | 493,756 | 746,172 | (2,174) |
Cash and cash equivalents at beginning of year | 773,830 | 27,658 | 29,832 |
Cash and cash equivalents at end of year | 1,267,586 | 773,830 | 27,658 |
Interest | 16,278 | 3,488 | 2,433 |
Income taxes | 20,058 | 5,898 | 5,277 |
Franchise taxes | 187 | 98 | 98 |
Other taxes | 290 | 79 | 48 |
Loans transferred to foreclosed real estate | 440 | 76 | 54 |
Issuance of common shares due to acquisition | (37,296) | 0 | (24,303) |
Contingent consideration - equity | (24,142) | 0 | 0 |
Capital leases | 0 | 0 | (2,259) |
Securities transferred from available-for-sale to held to maturity | 0 | 0 | 310 |
Purchase of available-for-sale securities accrued, not paid | 0 | 0 | (7,877) |
Purchase of held-to-maturity securities accrued, not paid | $ 0 | $ 0 | $ (3,000) |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in financial technology companies. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities. The Trust is not included in the consolidated financial statements of the Company. All significant intercompany balances and transactions have been eliminated. NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, residential real estate, and premium finance loans. The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis through its MPS and tax services divisions. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments. USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the allowance for loan losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future. CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank ("FRB"), based on a percentage of deposits. The total of those reserve balances was $ 1.5 million at September 30, 2017 , and there were no such reserve balances at September 30, 2016. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2017 , the Company had no interest-bearing deposits held at the FHLB and $ 1.23 billion in interest-bearing deposits held at the FRB. At September 30, 2017 , the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent. SECURITIES 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 (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial did not hold trading securities at September 30, 2017. The Company classifies the majority of its securities as AFS. AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done. Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned. The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or 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 that utilizes several sources for valuing fixed-income securities. Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Securities Impairment Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves the consideration 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 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. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value. If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes. The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. In fiscal 2017 , 2016 and 2015 , there was no other-than-temporary impairment recorded. LOANS RECEIVABLE Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method. As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR. For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider. Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan. Generally, when a loan becomes delinquent 90 days or more for retail bank loans or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. The loan will remain on a non-accrual status until six months of good payment history. Specialty finance loans and Payment segment loans are generally not placed on non-accrual status, but are instead written off when the collection of principal and interest becomes doubtful. MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS The Company, from time to time, sells loan participations, generally without recourse. Sold loans are not included in the consolidated financial statements. The Bank generally retains the right to service the sold loans for a fee. At September 30, 2017 and 2016, the Bank was servicing loans for others with aggregate unpaid principal balances of $ 21.8 million and $ 19.4 million, respectively. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses represents management’s estimate of probable loan losses that 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 and peer group’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. The allowance consists of specific, general and unallocated components. The specific component relates to impaired loans. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Often this is associated with a delay or shortfall in payments of 90 days or more for retail bank loans categories. Non-accrual loans and all TDRs are considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. 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. 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 reserve covers retail bank loans not considered impaired and is determined based upon both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2017 and 2016 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”). • The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past seven years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized. • A seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors. • The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off. The LEP is only applied to the non-classified loan general reserve. Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment. 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. The other loan portfolios primarily utilize a general reserve process that primarily uses historical factors related to the specific loan portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are written off after a loan becomes past due greater than 210 days for premium finance loans, 180 days for tax and other specialty lending loans and 90 days for other loans. FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses. Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs. INCOME TAXES The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. PREMISES, FURNITURE AND EQUIPMENT Land is carried at cost. Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization. Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. TRANSFERS OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. BANK-OWNED LIFE INSURANCE Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts. Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs. EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company. At September 30, 2017 and 2016, all shares in the ESOP were allocated. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements. GOODWILL Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment. The Company performs its impairment evaluation as of September 30 of each fiscal year. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the consolidated financial statements. No goodwill impairment was recognized during the years ended September 30, 2017, 2016 or 2015. INTANGIBLE ASSETS Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security. Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction. Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability. The securities underlying the agreements remain in the asset accounts of the Company. REVENUE RECOGNITION Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment. Income from service and other customer charges is recognized as earned. Revenue within the Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. EARNINGS PER COMMON SHARE (“EPS”) 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. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity. STOCK COMPENSATION 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 restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES The Company reclassified insignificant electronic return originator ("ERO") and taxpayer advance fee income and related expenses during 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. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91 . In fiscal 2017, the Company early adopted Accounting Standards Update ("ASU") 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting." The requirement to report the excess tax benefit related to settlements of share-based payment awards in earnings as an increase or (decrease) to income tax expense has been applied utilizing the prospective method. While the adoption of ASU 2016-09 requires retrospective application to all fiscal year periods presented, the Company elected to not recast previously reported financial statements as the impact was considered insignificant. However, the Company reclassified stock compensation from financing to operating activities on the Consolidated Statement of Cash Flows as of September 30, 2016 and September 30, 2015. The Company reclassified goodwill, intangibles, and related amortization expenses during fiscal year 2017 from the Corporate Services / Other segment to Payments and Banking based on how the Company performs its annual impairment testing. Prior period amounts have also been reclassified to conform to the current year presentation. In fiscal year 2016, the Company disclosed $89 thousand for proceeds from loan sales as a negative adjustment to net cash used in investing activities in the Consolidated Statements of Cash Flows. In fiscal 2017, the Company has corrected the fiscal year 2016 cash flow presentation to appropriately disclose this amount as a positive adjustment to net cash used in investing activities. As a result, the prior period amount for net changes in loans receivable has been adjusted from $(217,807) thousand , as previously reported, to $(217,985) thousand . These adjustments are considered to be prior period immaterial corrections and do not have any impact on fiscal year 2017 net cash provided by (used in) operating activities, investing activities, and financing activities. In fiscal year 2015, the Company disclosed $5,462 thousand for proceeds from loan sales as a negative adjustment to net cash used in investing activities. In fiscal year 2017, the Company has corrected the fiscal year 2015 cash flow presentation to appropriately disclose this amount as a positive adjustment to net cash used in investing activities. As a result, the prior period amount for net changes in loans receivable has been adjusted from $(135,187) thousand , as previously reported, to $(146,111) thousand . These adjustments are considered to be prior period immaterial corrections and do not have any impact on fiscal year 2017 net cash provided by (used in) operating activities, investing activities, and financing activities. 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. The Company is currently undertaking a data analysis and ensuring its systems are capturing data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018. ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company 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 has finalized their initial assessment of the ASU and expects that the standard will be immaterial to the consolidated financial statements with the Company's current leases. ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing all income streams, including different prepaid card programs so as 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 the Company has determined that this update will not have an impact on the consolidated financial statements. ASU 2016-09 , Compensation - Stock Compensation |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2017 | |
Business Combinations [Abstract] | |
ACQUISITIONS | ACQUISITIONS The Company completed two acquisitions for the fiscal year ended September 30, 2017. The two purchase transactions are detailed below. EPS Financial On November 1, 2016, the Company, through 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 the issuance of 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 balance sheet 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 has 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 as of November 1, 2016, 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 20 to the Consolidated Financial Statements for further information on goodwill. The Company recognized $0.5 million of pre-tax transaction-related expenses during fiscal 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 the issuance of 113,328 shares of Meta Financial common stock. In addition, contingent cash consideration of $17.5 million was paid out in the third quarter of fiscal 2017 and equity contingent consideration of 264,431 shares of Meta Financial common stock was paid in the fourth quarter of fiscal 2017 following the achievement of specified performance benchmarks (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 was 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 was deemed final if certain targets achieved. The equity earn-out measurements were as follows; 1) if, as of an equity earn-out measurement date, the anticipated 2018 measured gross profit met or exceeded the statement amount, MetaBank would deliver to SCS a stated number of shares of Meta Financial common stock; 2) if, as of an equity earn-out measurement date, the aggregate anticipated loan volume under all 2018 eligible contracts was greater than or equal to the agreed upon volume amount, then MetaBank would deliver to SCS a stated number of shares of Meta Financial common stock; and 3) if, as of an equity earn-out measurement date, each agreement specified in the contract was in effect and none of such agreements was 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 would deliver to SCS a stated number of shares of Meta Financial common stock. None of the equity earn-out payments was contingent on the achievement of any of the other equity earn-out targets. Upon the determined equity earn-out measurement date, MetaBank determined that each of the three earn-out measurement targets was achieved and the Company issued an aggregate of 264,431 shares of Meta Financial common stock in the fourth quarter of fiscal 2017. 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 was deemed final. During the third quarter of fiscal 2017, MetaBank paid out the $17.5 million of contingent cash consideration to SCS based upon the measured business gross profit. The Company has 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 were not observable in the market and thus represent 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 the Company's probability assessments of the expected future cash flows related to the Company's acquisition of SCS during the earn-out period. The following table represents the approximate fair value of assets acquired from 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 consideration paid 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 recognized goodwill of $31.4 million as of December 14, 2016, which was 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 20 to the Consolidated Financial Statements for further information on goodwill. The Company recognized $0.8 million of pre-tax transaction related expenses during the fiscal year ended 2017. The transaction expenses are reflected on the consolidated statement of operations primarily under legal and consulting. |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
LOANS RECEIVABLE, NET | LOANS RECEIVABLE, NET Year-end loans receivable were as follows: September 30, 2017 September 30, 2016 (Dollars in Thousands) 1-4 Family Real Estate $ 196,706 $ 162,298 Commercial and Multi-Family Real Estate 585,510 422,932 Agricultural Real Estate 61,800 63,612 Consumer 163,004 37,094 Commercial Operating 35,759 31,271 Agricultural Operating 33,594 37,083 Premium Finance 250,459 171,604 Total Loans Receivable 1,326,832 925,894 Allowance for Loan Losses (7,534 ) (5,635 ) Net Deferred Loan Origination Fees (1,461 ) (789 ) Total Loans Receivable, Net $ 1,317,837 $ 919,470 Annual activity in the allowance for loan losses was as follows: Year ended September 30, 2017 2016 2015 (Dollars in Thousands) Beginning balance $ 5,635 $ 6,255 $ 5,397 Provision for loan losses 10,589 4,605 1,465 Recoveries 307 147 123 Charge offs (8,997 ) (5,372 ) (730 ) Ending balance $ 7,534 $ 5,635 $ 6,255 Allowance for Loan Losses and Recorded Investment in loans at September 30, 2017 and 2016 were as follows: 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2017 Allowance for loan losses: Beginning balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Provision (recovery) for loan losses 149 610 1,248 6,830 1,165 (160 ) 773 (26 ) 10,589 Charge offs — (138 ) — (7,084 ) (1,149 ) — (626 ) — (8,997 ) Recoveries — — — 209 25 12 61 — 307 Ending balance $ 803 $ 2,670 $ 1,390 $ 6 $ 158 $ 1,184 $ 796 $ 527 $ 7,534 Ending balance: individually evaluated for impairment — — — — — — — — — Ending balance: collectively evaluated for impairment 803 2,670 1,390 6 158 1,184 796 527 7,534 Total $ 803 $ 2,670 $ 1,390 $ 6 $ 158 $ 1,184 $ 796 $ 527 $ 7,534 Loans: Ending balance: individually evaluated for impairment 72 1,109 — — — — — — 1,181 Ending balance: collectively evaluated for impairment 196,634 584,401 61,800 163,004 35,759 33,594 250,459 — 1,325,651 Total $ 196,706 $ 585,510 $ 61,800 $ 163,004 $ 35,759 $ 33,594 $ 250,459 $ — $ 1,326,832 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2016 Allowance for loan losses: Beginning balance $ 278 $ 1,187 $ 163 $ 20 $ 28 $ 3,537 $ 293 $ 749 $ 6,255 Provision (recovery) for loan losses 408 1,369 (21 ) 748 338 1,045 914 (196 ) 4,605 Charge offs (32 ) (385 ) — (728 ) (249 ) (3,252 ) (726 ) — (5,372 ) Recoveries — 27 — 11 — 2 107 — 147 Ending balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Ending balance: individually evaluated for impairment 10 — — — — — — — 10 Ending balance: collectively evaluated for impairment 644 2,198 142 51 117 1,332 588 553 5,625 Total $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Loans: Ending balance: individually evaluated for impairment 162 433 — — — — — — 595 Ending balance: collectively evaluated for impairment 162,136 422,499 63,612 37,094 31,271 37,083 171,604 — 925,299 Total $ 162,298 $ 422,932 $ 63,612 $ 37,094 $ 31,271 $ 37,083 $ 171,604 $ — $ 925,894 The asset classification of loans at September 30, 2017 , and 2016 , were as follows: September 30, 2017 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 195,838 $ 574,730 $ 27,376 $ 163,004 $ 35,759 $ 18,394 $ 250,459 $ 1,265,560 Watch 525 10,200 2,006 — — 4,541 — 17,272 Special Mention 247 201 2,939 — — — — 3,387 Substandard 96 379 29,479 — — 10,659 — 40,613 Doubtful — — — — — — — — $ 196,706 $ 585,510 $ 61,800 $ 163,004 $ 35,759 $ 33,594 $ 250,459 $ 1,326,832 September 30, 2016 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 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 Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows: Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating. Watch- A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets. Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher. The adverse classifications are as follows: Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard. Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate. Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. Generally, when a loan becomes delinquent 90 days or more for retail bank loans or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. Specialty finance loans and Payment segment loans are generally not placed on non-accrual status but written off when the collection of principal and interest become doubtful. Past due loans at September 30, 2017 and 2016 were as follows: September 30, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 370 $ 79 $ — $ 449 $ 196,257 $ — $ 196,706 Commercial and Multi-Family Real Estate — — — — 584,825 685 585,510 Agricultural Real Estate — — 34,198 34,198 27,602 — 61,800 Consumer 2,512 558 1,406 4,476 158,528 — 163,004 Commercial Operating — — — — 35,759 — 35,759 Agricultural Operating — — 97 97 33,497 — 33,594 Premium Finance 1,509 2,442 1,205 5,156 245,303 — 250,459 Total $ 4,391 $ 3,079 $ 36,906 $ 44,376 $ 1,281,771 $ 685 $ 1,326,832 September 30, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ — $ 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 90 days or more for retail bank loans. Specialty finance loans and Payment segment loans are generally not impaired but written off when the collection of principal and interest become doubtful. As of September 30, 2017 , there were no specialty finance loans greater than 210 days past due and the Payment segment had no loans past due. Impaired loans at September 30, 2017 and 2016 were as follows: Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2017 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 72 $ 72 $ — Commercial and Multi-Family Real Estate 1,109 1,109 — Total $ 1,181 $ 1,181 $ — Loans with a specific valuation allowance Total $ — $ — $ — Recorded Balance Unpaid Principal Balance Specific Allowance 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 Cash interest collected on impaired loans was not material during the years ended September 30, 2017 and 2016 . The following table provides the average recorded investment in impaired loans for the years ended September 30, 2017 and 2016 . Year Ended September 30, 2017 2016 Average Recorded Investment Average Recorded Investment 1-4 Family Real Estate $ 176 $ 144 Commercial and Multi-Family Real Estate 883 1,117 Agricultural Real Estate 146 — Commercial Operating 202 6 Agricultural Operating 268 2,919 Total $ 1,675 $ 4,186 For fiscal 2017 and 2016 , the Company’s TDRs (which involved forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates) are included in the table above. No TDRs were recorded during fiscal 2017 or 2016 . Also, no TDRs which had been modified during the 12-month period prior to default had a payment default during fiscal 2017 or 2016 . In December 2016, MetaBank purchased, net of purchase discount, a $134.0 million seasoned, floating rate, private student loan portfolio. All loans are indexed to three-month LIBOR plus various margins. The portfolio is serviced by ReliaMax Lending Services, LLC and insured by ReliaMax Surety Company. The majority of the Company’s retail bank originated loans are to Iowa- and South Dakota-based individuals and organizations. Excluding the purchased student loan balance of $ 123.7 million at September 30, 2017, the Company’s purchased loans portfolio totaled $ 10.7 million at September 30, 2017 , which were secured by properties located in Iowa, North Dakota, and South Dakota. The Company originates and purchases commercial real estate loans. These loans are considered by management to be of somewhat greater risk of not being collected due to the dependency on income production. The Company’s commercial real estate loans included $ 110.2 million of loans secured by hotel properties and $ 156.4 million of multi-family properties at September 30, 2017 . The Company’s commercial real estate loans included $ 65.4 million of loans secured by hotel properties and $ 112.6 million of multi-family properties at September 30, 2016 . The remainder of the commercial real estate portfolio is diversified by industry. The Company’s policy for requiring collateral and guarantees varies with the creditworthiness of each borrower. Non-accruing loans were $0.7 million and $0.1 million at September 30, 2017 and 2016 , respectively. There were $ 36.9 million and $ 1.0 million in accruing loans delinquent 90 days or more at September 30, 2017 and 2016 , respectively. For the year ended September 30, 2017 , gross interest income which would have been recorded had the non-accruing loans been current in accordance with their original terms amounted to approximately $ 13,000 , none of which was included in interest income. |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
LOAN SERVICING | LOAN SERVICING Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at year-end were as follows: September 30, 2017 2016 2015 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 3,162 $ 3,980 $ 5,055 Other 18,649 15,452 17,156 $ 21,811 $ 19,432 $ 22,211 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Sep. 30, 2017 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE EPS 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 the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2017 , 2016 and 2015 is presented below. 2017 2016 (1) 2015 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 44,917 $ 33,220 $ 18,055 Weighted average common shares outstanding 9,247,092 8,443,956 6,730,086 Basic income per common share $ 4.86 $ 3.93 $ 2.68 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 44,917 $ 33,220 $ 18,055 Weighted average common shares outstanding 9,247,092 8,443,956 6,730,086 Outstanding options - based upon the two-class method 55,652 53,390 61,499 Weighted average diluted common shares outstanding 9,302,744 8,497,346 6,791,585 Diluted income per common share $ 4.83 $ 3.91 $ 2.66 (1) See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91 . All stock options were considered in computing diluted EPS for the years ended September 30, 2017 and September 30, 2016. Stock options totaling 28,891 were not considered in computing diluted earnings per common share for the year ended September 30, 2015 because they were anti-dilutive. |
SECURITIES
SECURITIES | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES Securities available for sale at September 30, 2017 and 2016 were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities 57,046 825 — 57,871 Non-bank qualified obligations of states and political subdivisions 938,883 14,983 (3,037 ) 950,829 Asset-backed securities 94,451 2,381 — 96,832 Mortgage-backed securities 588,918 1,259 (3,723 ) 586,454 Total debt securities 1,679,298 19,448 (6,760 ) 1,691,986 Common equities and mutual funds 1,009 436 — 1,445 Total available for sale securities $ 1,680,307 $ 19,884 $ (6,760 ) $ 1,693,431 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2016 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Trust preferred and corporate 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 at September 30, 2017 and 2016 were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,247 $ 157 $ (36 ) $ 19,368 Non-bank qualified obligations of states and political subdivisions 430,593 4,744 (2,976 ) 432,361 Mortgage-backed securities 113,689 — (1,233 ) 112,456 Total held to maturity securities $ 563,529 $ 4,901 $ (4,245 ) $ 564,185 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2016 COST GAINS (LOSSES) VALUE (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 Included in securities available for sale are trust preferred securities as follows: At September 30, 2016 Issuer (1) Amortized Cost Fair Value Unrealized Gain (Loss) S&P Credit Rating Moody's Credit Rating (Dollars in Thousands) Key Corp. Capital I $ 4,987 $ 4,189 $ (798 ) BB+ Baa2 Huntington Capital Trust II SE 4,981 4,077 (904 ) BB Baa2 PNC Capital Trust 4,968 4,712 (256 ) BBB- Baa1 Total $ 14,936 $ 12,978 $ (1,958 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. The Company sold all of its trust preferred securities during the first quarter of fiscal year 2017. Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary. This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows. Management also determines whether the Company intends to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity. To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities 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 collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: available for sale, held to maturity 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. HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial did not have any trading securities at September 30, 2017. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2017 , and 2016 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions 280,900 (2,887 ) 5,853 (150 ) 286,753 (3,037 ) Mortgage-backed securities 237,897 (1,625 ) 100,287 (2,098 ) 338,184 (3,723 ) Total debt securities 518,797 (4,512 ) 106,140 (2,248 ) 624,937 (6,760 ) Total available for sale securities $ 518,797 $ (4,512 ) $ 106,140 $ (2,248 ) $ 624,937 $ (6,760 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate 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 September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,364 $ (6 ) $ 4,089 $ (30 ) $ 5,453 $ (36 ) Non-bank qualified obligations of states and political subdivisions 202,018 (2,783 ) 6,206 (193 ) 208,224 (2,976 ) Mortgage-backed securities 112,456 (1,233 ) — — 112,456 (1,233 ) Total held to maturity securities $ 315,838 $ (4,022 ) $ 10,295 $ (223 ) $ 326,133 $ (4,245 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (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 ) As of September 30, 2017 and 2016 , the investment portfolio included securities with current unrealized losses which have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2017 or 2016 . The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 36,586 37,674 Due after five years through ten years 347,831 358,198 Due after ten years 705,963 709,660 1,090,380 1,105,532 Mortgage-backed securities 588,918 586,454 Common equities and mutual funds 1,009 1,445 Total available for sale securities $ 1,680,307 $ 1,693,431 AMORTIZED COST FAIR VALUE 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 COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ 1,483 $ 1,480 Due after one year through five years 17,926 18,160 Due after five years through ten years 144,996 147,832 Due after ten years 285,435 284,257 449,840 451,729 Mortgage-backed securities 113,689 112,456 Total held to maturity securities $ 563,529 $ 564,185 AMORTIZED COST FAIR VALUE 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 Activities related to the sale of securities are summarized below. 2017 2016 2015 September 30, (Dollars in Thousands) Available For Sale Proceeds from sales $ 457,306 $ 285,508 $ 566,371 Gross gains on sales 4,091 1,459 2,753 Gross losses on sales 4,628 1,785 4,387 Net (loss) on available for sale securities (537 ) (326 ) (1,634 ) Held To Maturity Net carrying amount of securities sold $ 5,826 $ — $ — Gross realized gain on sales 92 — — Gross realized losses on sales 48 — — Net gain on held to maturity securities 44 — — The Company's decision to sell securities held to maturity in the fourth quarter of fiscal 2017 was due to credit deteriorations of the securities based on the Company's internal credit analysis as well as respective downgrades from credit agencies. |
PREMISES, FURNITURE, AND EQUIPM
PREMISES, FURNITURE, AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
PREMISES, FURNITURE, AND EQUIPMENT, NET | PREMISES, FURNITURE AND EQUIPMENT, NET Year-end premises and equipment were as follows: September 30, 2017 2016 (Dollars in Thousands) Land $ 1,578 $ 1,578 Buildings 10,642 10,482 Furniture, fixtures, and equipment 46,934 41,756 Capitalized leases 2,259 2,259 61,413 56,075 Less: accumulated depreciation and amortization (42,093 ) (37,449 ) Net book value $ 19,320 $ 18,626 Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $ 5.5 million , $ 5.4 million and $ 4.6 million for the years ended September 30, 2017 , 2016 and 2015 , respectively. Amortization expense on capitalized leases for the years ended September 30, 2017 , 2016 and 2015, was $ 0.1 million , $0.2 million and $0.2 million , respectively, and is included in occupancy and equipment expense. Substantially all of the Company's capitalized leases at September 30, 2017 were building leases. |
TIME CERTIFICATES OF DEPOSITS
TIME CERTIFICATES OF DEPOSITS | 12 Months Ended |
Sep. 30, 2017 | |
Deposits [Abstract] | |
TIME CERTIFICATES OF DEPOSITS | TIME CERTIFICATES OF DEPOSITS Time certificates of deposits in denominations of $ 250,000 or more were approximately $85.2 million and $ 44.5 million at September 30, 2017 , and 2016 , respectively. At September 30, 2017 , the scheduled maturities of time certificates of deposits were as follows for the years ending: As of September 30, (Dollars in Thousands) 2018 $ 560,825 2019 10,943 2020 5,158 2021 2,412 2022 2,227 Thereafter — Total Certificates (1) $ 581,565 (1) As of September 30, 2017, total certificates of deposits included $457.9 million of brokered certificates of deposits, which are recored in Wholesale deposits on the consolidated statements of financial condition. Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are permanently insured up to $ 250,000 by the DIF under management of the FDIC. |
SHORT TERM AND LONG TERM DEBT
SHORT TERM AND LONG TERM DEBT | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
SHORT TERM AND LONG TERM DEBT | SHORT TERM DEBT AND LONG TERM DEBT Short Term Debt September 30, 2017 2016 Overnight federal funds purchased $ 987,000 $ 992,000 Short-term FHLB advances 415,000 100,000 Short-term capital lease 62 79 Repurchase agreements 2,472 3,039 Total 1,404,534 1,095,118 The Company had $ 987.0 million of overnight federal funds purchased from the FHLB as of September 30, 2017 . The Company had $ 992.0 million in overnight federal funds purchased from the FHLB at September 30, 2016 . At September 30, 2017, the Company’s short-term advances from the FHLB totaled $415.0 million and carried a net weighted average rate of 1.27% . The Company had $100.0 million in short-term advances from the FHLB at September 30, 2016. The Bank has executed blanket pledge agreements whereby the Bank assigns, transfers, and pledges to the FHLB and grants to the FHLB a security interest in all mortgage collateral and securities collateral. The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB. Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement. At fiscal year-end 2017 and 2016 , the Bank pledged securities with fair values of approximately $ 1.07 billion and $ 824.5 million, respectively, against specific FHLB advances. In addition, qualifying mortgage loans of approximately $ 628.0 million, and $ 501.0 million were pledged as collateral at September 30, 2017 , and 2016 , respectively. As of September 30, 2017 , the Company had three capital leases, two equipment leases and one property lease. At September 30, 2017 , the portion of the liability expected to be expensed and amortized over the next 12 months is approximately $79,507 . Securities sold under agreements to repurchase totaled approximately $ 2.5 million and $ 3.0 million at September 30, 2017 , and 2016 , respectively. An analysis of securities sold under agreements to repurchase at September 30, 2017 and 2016 follows: September 30, 2017 2016 (Dollars in Thousands) Highest month-end balance $ 3,782 $ 3,468 Average balance 2,225 2,179 Weighted average interest rate for the year 0.98 % 0.60 % Weighted average interest rate at year end 1.59 % 0.61 % The Company pledged securities with fair values of approximately $ 9.3 million at September 30, 2017 , as collateral for securities sold under agreements to repurchase. There were $ 9.2 million of securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2016 . Long Term Debt September 30, 2017 2016 (Dollars in Thousands) Long-term FHLB advances $ — $ 7,000 Trust preferred securities 10,310 10,310 Subordinated debentures (net of issuance costs) 73,347 73,211 Long-term capital lease 1,876 1,939 Total 85,533 92,460 At September 30, 2017 , the Company had no long-term advances from the FHLB. The Company had $7.0 million in long-term advances from the FHLB at September 30, 2016 which carried a weighted average rate of 6.98% . The $7.0 million of long-term advances were paid off by the Company during the fourth quarter of 2017. At September 30, 2017, the scheduled maturities of the Company's long-term debt were as follows for the years ending: September 30, (Dollars in Thousands) Trust preferred securities Subordinated debentures Long-term capital lease Total 2018 $ — $ — $ — $ — 2019 — — 65 65 2020 — — 72 72 2021 — — 77 77 2022 — — 82 82 Thereafter 10,310 73,347 1,580 85,237 Total long-term debt $ 10,310 $ 73,347 $ 1,876 $ 85,533 Trust preferred securities are due to First Midwest Financial Capital Trust I, a 100% -owned nonconsolidated subsidiary of the Company. The securities were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities. The securities bear the same interest rate and terms as the trust preferred securities. The securities are included on the consolidated statements of financial condition as liabilities. The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities. Distributions are paid semi-annually. Cumulative cash distributions are calculated at a variable rate of London Interbank Offered Rate (“LIBOR”) plus 3.75% ( 5.22% at September 30, 2017 , and 4.99% at September 30, 2016 ), not to exceed 12.5% . The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031. At the end of any deferral period, all accumulated and unpaid distributions are required to be paid. The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date. The redemption price is $ 1,000 per capital security plus any accrued and unpaid distributions to the date of redemption. Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock. Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations. The Company completed the public offering of $75.0 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million . At September 30, 2017, the Company had $73.3 million in subordinated debentures, net of issuance costs of $1.7 million . Accumulated interest expense on the subordinated debentures was $4.3 million as of September 30, 2017. As of September 30, 2017, the Company had three capital leases, two equipment leases and one property lease. At September 30, 2017, the portion of the liability expected to be expensed and amortized beyond 12 months is $1.9 million . The majority of the $1.9 million is related to the Urbandale, Iowa retail branch location . |
EMPLOYEE STOCK OWNERSHIP AND PR
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS | 12 Months Ended |
Sep. 30, 2017 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS | EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1000 hours of employment with the Bank, have worked at least one year at the Bank and who have attained age 21 . ESOP expense of $ 1,668,000 , $ 1,150,000 and $ 994,000 was recorded for the years ended September 30, 2017 , 2016 and 2015 , respectively. Contributions of $ 1,606,102 , $ 1,174,682 and $ 992,038 were made to the ESOP during the years ended September 30, 2017 , 2016 and 2015 , respectively. Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation. Benefits generally become 100% vested after seven years of credited service. Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable in the form of stock upon termination of employment. The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated. For the years ended September 30, 2017 , 2016 and 2015 , 20,486 shares, 19,381 shares and 23,750 shares, from the suspense account, with a fair value of $ 78.40 , $ 60.61 and $ 41.77 per share, respectively, were released. For the years ended September 30, 2017 , 2016 and 2015 , allocated shares and total ESOP shares reflect 14,126 shares, 15,502 shares and 10,294 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings. At September 30, 2017 , 2016 and 2015 , there were 1,479 , 2,710 and 2,974 shares purchased, respectively, for dividend reinvestment. Year-end ESOP shares are as follows: At September 30, 2017 2016 2015 (Dollars in Thousands) Allocated shares 256,219 262,872 256,283 Unearned shares — — — Total ESOP shares 256,219 262,872 256,283 Fair value of unearned shares $ — $ — $ — The Company also has a profit sharing plan covering substantially all full-time employees. Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2017 , 2016 and 2015 was $ 1.61 million, $ 1.26 million and $ 1.10 million, respectively. |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
SHARE BASED COMPENSATION PLANS | SHARE-BASED COMPENSATION PLANS 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. The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2017 , 2017 and 2016. Year Ended September 30, 2017 2016 2015 (Dollars in Thousands) Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively $ 6,486 $ 559 $ 334 As of September 30, 2017 , stock-based compensation expense not yet recognized in income totaled $ 16.9 million, which is expected to be recognized over a weighted-average remaining period of 4.08 years. At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model. The exercise price of stock options equals the fair market value of the underlying stock at the date of grant. Options are issued for 10 -year periods with 100% vesting generally occurring either at grant date or over a four -year period. No options were granted during the years ended September 30, 2017 , 2016 or 2015. The intrinsic value of options exercised during the years ended September 30, 2017 , 2016 and 2015 were $ 1.8 million, $ 1.5 million and $ 0.9 million, respectively. Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares vest immediately. The total fair value of director’s shares granted during the years ended September 30, 2017 , 2016 and 2015 was $ 0.5 million, $ 0.2 million and $ 0.1 million, respectively. In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan. No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2017 ; however, previously awarded options were exercised under this plan during the year ended September 30, 2017. In addition, during the first and second quarters of fiscal 2017, shares were granted to certain named executive officers (“NEOs”) of the Company in connection with their signing of employment agreements with the Company. These stock awards vest in equal installments over eight years. The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2017 and 2016 . Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2016 125,560 $ 25.73 2.68 $ 4,379 Granted — — — — Exercised (29,386 ) 33.38 — 1,790 Forfeited or expired (20,417 ) 26.25 — 1,464 Options outstanding, September 30, 2017 75,757 $ 22.62 2.28 $ 4,225 Options exercisable end of year 75,757 $ 22.62 2.28 $ 4,225 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2015 189,088 $ 25.74 3.16 $ 3,027 Granted — — — — Exercised (63,528 ) 25.77 — 1,510 Forfeited or expired — — — — Options outstanding, September 30, 2016 125,560 $ 25.73 2.68 $ 4,379 Options exercisable end of year 125,560 $ 25.73 2.68 $ 4,379 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2016 20,656 $ 41.37 Granted 316,604 87.49 Vested (29,135 ) 64.22 Forfeited or expired (3,599 ) 56.39 Nonvested shares outstanding, September 30, 2017 304,526 $ 86.96 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2015 44,002 $ 40.80 Granted 8,154 42.49 Vested (33,666 ) 40.93 Forfeited or expired 2,166 46.98 Nonvested shares outstanding, September 30, 2016 20,656 $ 41.37 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following: Years ended September 30, 2017 2016 2015 (Dollars in Thousands) Federal: Current $ 12,153 $ 4,410 $ 4,217 Deferred (5,040 ) (440 ) (3,896 ) 7,113 3,970 321 State: Current 4,366 1,422 1,048 Deferred (1,246 ) 210 (1 ) 3,120 1,632 1,047 Income tax expense $ 10,233 $ 5,602 $ 1,368 Total income tax expense differs from the statutory federal income tax rate as follows: Years ended September 30, 2017 2016 2015 (Dollars in Thousands) Income tax expense at federal tax rate $ 19,303 $ 13,588 $ 6,798 Increase (decrease) resulting from: State income taxes net of federal benefit 2,014 933 692 Nontaxable buildup in cash surrender value (776 ) (580 ) (711 ) Stock based compensation (593 ) (66 ) (37 ) Tax exempt income (9,991 ) (8,257 ) (5,230 ) Nondeductible expenses 316 196 188 Other, net (40 ) (212 ) (332 ) Total income tax expense $ 10,233 $ 5,602 $ 1,368 The components of the net deferred tax asset (liability) at September 30, 2017 and 2016 were: September 30, 2017 2016 (Dollars in Thousands) Deferred tax assets: Bad debts $ 2,832 $ 2,044 Deferred compensation 1,548 1,345 Stock based compensation 3,436 265 Operational reserve 645 540 AMT Credit 1,869 5,563 Intangibles 5,235 393 Indirect tax benefits of unrecognized tax positions 266 216 Other assets 1,933 1,362 17,764 11,728 Deferred tax liabilities: FHLB stock dividend (425 ) (411 ) Premises and equipment (1,789 ) (1,913 ) Patents (842 ) (988 ) Prepaid expenses (673 ) (668 ) Net unrealized gains on securities available for sale (4,934 ) (12,348 ) (8,663 ) (16,328 ) Net deferred tax assets (liabilities) $ 9,101 $ (4,600 ) As of September 30, 2017 and 2016 , the Company had a gross deferred tax asset of $1.3 million and $0.9 million , respectively, for separate company state cumulative net operating loss carryforwards, which was fully reserved for as the Company does not anticipate any state taxable income at the holding company level in future periods. In general, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2017 , or 2016 with the exception of the state cumulative net operating loss carryforwards discussed above. Federal income tax laws provided savings banks with additional bad debt deductions through September 30, 1987, totaling $6.7 million for the Bank. Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability otherwise would total approximately $ 2.3 million at September 30, 2017 and 2016 . If the Bank were to be liquidated or otherwise cease to be a bank, or if tax laws were to change, the $2.3 million would be recorded as expense. The provisions of ASC 740, Income Taxes, address the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the consolidated financial statements. Under ASC 740, the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination, with a tax examination being presumed to occur, including the resolution of any related appeals or litigation. The tax benefits recognized in the consolidated financial statements from such a position are measured as the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution. The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review. While the Company believes that its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances surrounding a tax issue, and (ii) any difference from the Company’s tax position as recorded in the consolidated financial statements and the final resolution of a tax issue during the period. The tax years ended September 30, 2014 and later remain subject to examination by the Internal Revenue Service. For state purposes, the tax years ended September 30, 2014 and later remain open for examination, with few exceptions. A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2017 , and 2016 follows: September 30, 2017 2016 (Dollars in Thousands) Balance at beginning of year $ 525 $ 974 Additions for tax positions related to the current year 192 63 Additions for tax positions related to the prior years 31 — Reductions for tax positions due to settlement with taxing authorities — (372 ) Reductions for tax positions related to prior years (103 ) (140 ) Balance at end of year $ 645 $ 525 The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $ 460,000 as of September 30, 2017 . The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest related to unrecognized tax benefits was $ 114,000 as of September 30, 2017 . The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | 12 Months Ended |
Sep. 30, 2017 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract] | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS In July 2013, the Company’s primary federal regulator, the Federal Reserve and the Bank’s primary federal regulator, the OCC, approved final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Basel III Capital Rules substantially revised the risk-based capital requirements applicable to financial institution holding companies and their depository institution subsidiaries, including us and the Bank, as compared to U.S. general risk-based capital rules. The Basel III Capital Rules revised the definitions and the components of regulatory capital, as well as addressed other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also addressed asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replaced the existing general risk-weighting approach, which was derived from the Basel Committee’s 1988 “Basel I” capital accords, with a more risk-sensitive approach based, in part, on the “standardized approach” in the Basel Committee’s 2004 “Basel II” capital accords. In addition, the Basel III Capital Rules implemented certain provisions of the Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules. The Basel III Capital Rules became effective for us and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions. Pursuant to the Basel III Capital Rules, the Company and Bank, respectively, are subject to new regulatory capital adequacy requirements promulgated by the Federal Reserve and the OCC. Failure by our Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Prior to January 1, 2015, our Bank was subject to capital requirements under Basel I and there were no capital requirements for our Company. Under the capital requirements and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At September 30, 2017, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements. The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components. The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity. Company Bank Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions September 30, 2017 Tier 1 leverage ratio 7.64 % 9.64 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 13.97 18.22 4.50 6.50 Tier 1 capital ratio 14.46 18.22 6.00 8.00 Total qualifying capital ratio 18.41 18.59 8.00 10.00 September 30, 2016 Tier 1 leverage ratio 8.35 % 10.35 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 17.28 21.95 4.50 6.50 Tier 1 capital ratio 17.82 21.95 6.00 8.00 Total qualifying capital ratio 23.17 22.35 8.00 10.00 The following table provides a reconciliation of the amounts included in the table above for the Company. Standardized Approach (1) September 30, 2017 (Dollars in Thousands) Total equity $ 434,496 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 95,332 LESS: Certain other intangible assets 41,743 LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 1,495 LESS: Net unrealized gains (losses) on available-for-sale securities 9,166 Common Equity Tier 1 (1) 286,760 Long-term debt and other instruments qualifying as Tier 1 10,310 LESS: Additional tier 1 capital deductions 374 Total Tier 1 capital 296,696 Allowance for loan losses 7,718 Subordinated debentures (net of issuance costs) 73,347 Total qualifying capital 377,761 (1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015. Beginning January 1, 2016, Basel III implemented a requirement for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. On January 1, 2016, the Company and Bank were expected to comply with the capital conservation buffer requirement, which increased the three risk-based capital ratios by 0.625% each year through 2019, at which point the Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 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 September 30, 2017 and 2016 , unfunded loan commitments approximated $ 233.2 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 cancelled upon expiration of the commitment term as outlined in each individual contract. The Company had no commitments to purchase or sell securities at September 30, 2017 or September 30, 2016 . The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments. The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Management monitors several factors when estimating its allowance for uncollectible off-balance-sheet credit exposures, including, but not limited to, economic developments and historical loss rates. Since certain commitments to make loans and to fund lines of credit 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. Securities with fair values of approximately $5.7 million and $ 5.8 million at September 30, 2017 and 2016 , respectively, were pledged as collateral for public funds on deposit. Securities with fair values of approximately $ 3.8 million and $ 3.4 million at September 30, 2017 , and 2016 , respectively, were pledged as collateral for individual, trust and estate deposits. 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 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 former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs have been wound down, there are two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4,001,025 . 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. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
LEASE COMMITMENTS | LEASE COMMITMENTS The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2036 , and require annual rentals ranging from $ 12,000 to $ 789,000 plus the payment of the property taxes, normal maintenance, and insurance on certain properties. The Company also entered into capital lease agreements during the fiscal year ended September 30, 2015, for building and equipment expiring at various times through fiscal year 2035 . Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2017 , and included in interest expense. In November 2014, the Company entered into a sale-leaseback transaction for one of its retail bank locations in the Des Moines area. This lease meets the requirements of a capital lease and has been reflected as such in the financial statements. The original term of the lease is 20 years and does not contain any penalties for failure to renew after the initial 20 year term where guarantees or loans from the lessee to the lessor are expected to be outstanding. The Company has the option to extend the lease for four additional five year terms at the conclusion of the original lease term. The following table shows the total minimum rental commitment for our operating and capital leases for each of the years presented below as of September 30, 2017 . Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2018 $ 2,486 $ 179 2019 2,287 179 2020 2,289 182 2021 2,143 182 2022 1,882 182 Thereafter 17,922 2,240 Total Leases Commitments $ 29,009 $ 3,144 Amounts representing interest $ 1,206 Present value of net minimum lease payments 1,938 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
SEGMENT REPORTING | SEGMENT REPORTING An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other. Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in Corporate Services/Other. Specialty Lending and Retail Bank are reported in the Banking segment. MPS, Refund Advantage, EPS, SCS, and other tax businesses are reported in the Payments segment. The Company reclassified goodwill, intangibles, and related amortization expenses during fiscal year 2017 from the Corporate Services / Other segment to Payments and Banking based on how annual impairment testing is performed. Prior period amounts have also been reclassified to conform to the current year presentation. Payments Banking Corporate Services/Other Total Year Ended September 30, 2017 Interest income $ 13,845 $ 52,231 $ 42,027 $ 108,103 Interest expense 503 2,723 11,647 14,873 Net interest income 13,342 49,508 30,380 93,230 Provision for loan losses 7,613 2,976 — 10,589 Non-interest income 165,707 4,685 1,780 172,172 Non-interest expense 132,984 24,520 42,159 199,663 Income (loss) before income tax expense (benefit) 38,452 26,697 (9,999 ) 55,150 Total assets 185,521 1,343,968 3,698,843 5,228,332 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,436,893 229,969 556,562 3,223,424 Payments Banking Corporate Services/Other Total Year Ended September 30, 2016 Interest income $ 9,711 $ 38,321 $ 33,364 $ 81,396 Interest expense 181 1,331 2,579 4,091 Net interest income 9,530 36,990 30,785 77,305 Provision for loan losses 971 3,634 — 4,605 Non-interest income 95,261 4,280 1,229 100,770 Non-interest expense 77,411 23,001 34,236 134,648 Income (loss) before income tax expense (benefit) 26,409 14,635 (2,222 ) 38,822 Total assets 87,311 946,420 2,972,688 4,006,419 Total goodwill 25,350 11,578 — 36,928 Total deposits 2,131,042 299,030 10 2,430,082 Payments Banking Corporate Services/Other Total Year Ended September 30, 2015 Interest income $ 7,261 $ 31,394 $ 22,952 $ 61,607 Interest expense 169 1,377 841 2,387 Net interest income 7,092 30,017 22,111 59,220 Provision for loan losses — 689 776 1,465 Non-interest income 54,417 3,358 399 58,174 Non-interest expense 47,731 19,028 29,747 96,506 Income (loss) before income tax expense (benefit) 13,778 13,658 (8,013 ) 19,423 Total assets 93,336 724,834 1,711,535 2,529,705 Total goodwill 25,350 11,578 — 36,928 Total deposits 1,424,304 233,235 (5 ) 1,657,534 |
PARENT COMPANY FINANCIAL STATEM
PARENT COMPANY FINANCIAL STATEMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
PARENT COMPANY FINANCIAL STATEMENTS | PARENT COMPANY FINANCIAL STATEMENTS Presented below are condensed financial statements for the parent company, Meta Financial, at the dates and for the years presented below. CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, 2017 2016 (Dollars in Thousands) ASSETS Cash and cash equivalents $ 14,569 $ 15,716 Investment in subsidiaries 521,021 403,574 Other assets 406 413 Total assets $ 535,996 $ 419,703 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Long term debt $ 83,657 $ 83,521 Other liabilities 17,843 1,207 Total liabilities $ 101,500 $ 84,728 STOCKHOLDERS' EQUITY Common stock $ 96 $ 85 Additional paid-in capital 258,336 184,780 Retained earnings 167,164 127,190 Accumulated other comprehensive income 9,166 22,920 Treasury stock, at cost (266 ) — Total stockholders' equity $ 434,496 $ 334,975 Total liabilities and stockholders' equity $ 535,996 $ 419,703 CONDENSED STATEMENTS OF OPERATIONS Years Ended September 30, 2017 2016 2015 (Dollars in Thousands) Interest expense $ 4,959 $ 1,022 $ 418 Other expense 440 382 269 Total expense 5,399 1,404 687 Gain (loss) before income taxes and equity in undistributed net income of subsidiaries (5,399 ) (1,404 ) (687 ) Income tax (benefit) (1,935 ) (519 ) (324 ) Gain (loss) before equity in undistributed net income of subsidiaries (3,464 ) (885 ) (363 ) Equity in undistributed net income of subsidiaries 48,381 34,105 18,418 Net income $ 44,917 $ 33,220 $ 18,055 CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2017 2016 2015 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 44,917 $ 33,220 $ 18,055 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation, amortization and accretion, net 136 (22 ) — Equity in undistributed net income of subsidiaries (48,381 ) (34,105 ) (18,418 ) Stock compensation 10,401 427 253 Change in other assets 7 (5 ) (15 ) Change in other liabilities 16,636 541 378 Net cash provided by (used in) operating activities 23,716 56 253 CASH FLOWS FROM INVESTING ACTIVITES Capital contributions to subsidiaries (82,820 ) (81,000 ) (67,600 ) Net cash used in investing activities (82,820 ) (81,000 ) (67,600 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (4,839 ) (4,389 ) (3,493 ) Purchase of shares by ESOP 1,174 — — Proceeds from contingent consideration - equity 24,142 — — Proceeds from exercise of stock options & issuance of common stock 650 13,536 75,681 Issuance of common shares due to acquisition 37,296 — — Issuance of restricted stock 4 — — Proceeds from long term debt — 75,000 — Payment of debt issuance costs — (1,767 ) — Shares repurchased for tax withholdings on stock compensation (470 ) — — Other, net — — — Net cash provided by financing activities 57,957 82,380 72,188 Net change in cash and cash equivalents $ (1,147 ) $ 1,436 $ 4,841 CASH AND CASH EQUIVALENTS Beginning of year $ 15,716 $ 14,280 $ 9,439 End of year $ 14,569 $ 15,716 $ 14,280 The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company. For further discussion, see Note 13 herein. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) QUARTER ENDED December 31 March 31 June 30 September 30 (Dollars in Thousands) Fiscal Year 2017 Interest income $ 22,575 $ 27,718 $ 28,861 $ 28,949 Interest expense 2,742 3,752 3,918 4,461 Net interest income 19,833 23,966 24,943 24,488 Provision (recovery) for loan losses 843 8,649 1,240 (144 ) Net Income 1,244 32,142 9,787 1,744 Earnings per common and common equivalent share Basic $ 0.14 $ 3.44 $ 1.05 $ 0.19 Diluted 0.14 3.42 1.04 0.19 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2016 Interest income $ 18,275 $ 20,629 $ 20,763 $ 21,729 Interest expense 720 691 844 1,836 Net interest income 17,555 19,938 19,919 19,893 Provision for loan losses 786 1,173 2,098 548 Net Income 4,058 14,283 8,873 6,006 Earnings per common and common equivalent share Basic $ 0.49 $ 1.68 $ 1.04 $ 0.70 Diluted 0.49 1.67 1.04 0.70 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2015 Interest income $ 14,232 $ 15,758 $ 15,254 $ 16,363 Interest expense 661 473 593 660 Net interest income 13,571 15,285 14,661 15,703 Provision for loan losses 48 593 700 124 Net Income 3,595 5,181 4,640 4,639 Earnings per common and common equivalent share Basic $ 0.58 $ 0.79 $ 0.67 $ 0.64 Diluted 0.58 0.78 0.66 0.63 Dividend declared per share 0.13 0.13 0.13 0.13 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | FAIR VALUES OF FINANCIAL INSTRUMENTS 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. There were no transfers between levels of the fair value hierarchy for the years ended September 30, 2017 or 2016 . 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. The Company’s 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 September 30, 2017 , or 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 on 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 September 30, 2017 and 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 September 30, 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 57,871 — 57,871 — — — — — Obligations of states and political subdivisions — — — — 19,368 — 19,368 — Non-bank qualified obligations of states and political subdivisions 950,829 — 950,829 — 432,361 — 432,361 — Asset-backed securities 96,832 — 96,832 — — — — — Mortgage-backed securities 586,454 — 586,454 — 112,456 — 112,456 — Total debt securities 1,691,986 — 1,691,986 — 564,185 — 564,185 — Common equities and mutual funds 1,445 1,445 — — — — — — Total securities $ 1,693,431 $ 1,445 $ 1,691,986 $ — $ 564,185 $ — $ 564,185 $ — 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 and corporate 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 $ — Foreclosed Real Estate and Repossessed Assets . Real estate properties and repossessed assets are initially recorded at the fair value less selling costs at the date of foreclosure, establishing a new cost basis. The carrying amount represents the lower of the new cost basis or the fair value less selling costs of foreclosed assets that were measured at fair value subsequent to their initial classification as foreclosed assets. Loans. The Company does not record loans at fair value on a recurring basis. However, if a loan is considered impaired, an allowance for loan losses is established. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables . The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of September 30, 2017 and 2016 . Fair Value at September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 Fair Value At September 30, 2016 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family real estate $ 68 $ — $ — $ 68 Total 68 — — 68 Foreclosed Assets, net 76 — — 76 Total $ 144 $ — $ — $ 144 Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at September 30, 2017 Fair Value at September 30, 2016 Valuation Technique Unobservable Input Impaired Loans, net $ — $ 68 Market approach Appraised values (1) Foreclosed Assets, net 292 76 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10% . The following tables disclose the Company’s estimated fair value amounts of its financial instruments at the dates provided. 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 September 30, 2017 and 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 September 30, 2017 and 2016 . September 30, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 1,267,586 $ 1,267,586 $ 1,267,586 $ — $ — Securities available for sale 1,693,431 1,693,431 1,445 1,691,986 — Securities held to maturity 563,529 564,185 — 564,185 — Total securities 2,256,960 2,257,616 1,445 2,256,171 — Loans receivable: One to four family residential mortgage loans 196,706 196,970 — — 196,970 Commercial and multi-family real estate loans 585,510 576,330 — — 576,330 Agricultural real estate loans 61,800 61,584 — — 61,584 Consumer loans 163,004 163,961 — — 163,961 Commercial operating loans 35,759 35,723 — — 35,723 Agricultural operating loans 33,594 32,870 — — 32,870 Premium finance loans 250,459 250,964 — — 250,964 Total loans receivable 1,326,832 1,318,402 — — 1,318,402 Federal Home Loan Bank stock 61,123 61,123 — 61,123 — Accrued interest receivable 19,380 19,380 19,380 — — Financial liabilities Non-interest bearing demand deposits 2,454,057 2,454,057 2,454,057 — — Interest bearing demand deposits, savings, and money markets 169,557 169,557 169,557 — — Certificates of deposit 123,637 123,094 — 123,094 — Wholesale non-maturing deposits 18,245 18,245 18,245 — — Wholesale certificates of deposits 457,928 457,509 — 457,509 — Total deposits 3,223,424 3,222,462 2,641,859 580,603 — Advances from Federal Home Loan Bank 415,000 415,003 — 415,003 — Federal funds purchased 987,000 987,000 987,000 — — Securities sold under agreements to repurchase 2,472 2,472 — 2,472 — Capital leases 1,938 1,938 — 1,938 — Trust preferred securities 10,310 10,447 — 10,447 — Subordinated debentures 73,347 76,500 — 76,500 — Accrued interest payable 2,280 2,280 2,280 — — September 30, 2016 Carrying Amount Estimated Fair Value 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 Non-interest 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 leases 2,018 2,018 — 2,018 — Trust preferred 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 September 30, 2017 and 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, loans were grouped by homogeneous loans with similar terms and conditions and discounted at a target rate at which similar loans would be made to borrowers at September 30, 2017 and 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. FHLB STOCK The fair value of such stock is assumed to approximate book value since the Company is generally 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 intangible is not a financial instrument as defined under ASC 825. ADVANCES FROM FHLB The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities. FEDERAL FUNDS PURCHASED The carrying amount of federal funds purchased is assumed to approximate the fair value. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, CAPITAL LEASES, SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES 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, 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 | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company had a total of $98.7 million of goodwill as of September 30, 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. The fiscal 2015 business combinations included $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015. The fiscal 2017 business combinations included $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 are deductible for tax purposes. The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2017 and 2016 are as follows: September 30, 2017 2016 (Dollars in Thousands) Goodwill Beginning balance $ 36,928 $ 36,928 Acquisitions during the period 61,795 — Write-offs during the period — — Ending balance $ 98,723 $ 36,928 The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2017 . Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (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 6,947 46,397 Amortization during the period (598 ) (525 ) (10,405 ) (835 ) (12,363 ) Write-offs during the period — — (10,248 ) (529 ) (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Balance upon acquisition $ 10,990 $ 2,480 $ 57,810 $ 10,502 $ 81,782 Accumulated amortization $ (939 ) $ (698 ) $ (15,855 ) $ (1,335 ) $ (18,827 ) Accumulated impairment $ — $ — $ (10,248 ) $ (529 ) $ (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (4) Total Intangibles Balance as of September 30, 2015 $ 5,439 $ 227 $ 24,811 $ 3,100 $ 33,577 Acquisitions during the period — — — 172 172 Amortization during the period (290 ) (100 ) (4,221 ) (217 ) (4,828 ) Write-offs during the period — — — — — Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Balance upon acquisition $ 5,490 $ 300 $ 26,040 $ 3,539 $ 35,369 Accumulated amortization $ (341 ) $ (173 ) $ (5,450 ) $ (484 ) $ (6,448 ) Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 (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 Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The Company recorded a $10.2 million intangible impairment charge during the fourth quarter of fiscal 2017 related to the non-renewal of the H&R Block relationship. The weighted-average amortization period, by major intangible asset class and in total, for each of the acquisitions during fiscal year 2017 were as follows: Weighted Average Amortization Period Intangible EPS SCS Trademark 15.0 5.0 Non-Compete 3.0 4.1 Customer Relationships 20.0 9.1 Technology/Other 3.0 15.0 Total 16.1 10.2 The anticipated future amortization of intangibles is as follows: September 30, (Dollars in Thousands) 2018 $ 7,706 2019 7,147 2020 5,749 2021 5,179 2022 4,257 Thereafter 22,140 Total anticipated intangible amortization $ 52,178 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2017 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS On October 11, 2017, the Company completed the purchase of a $73 million , seasoned, floating rate, private student loan portfolio. All loans are indexed to one-month LIBOR. The portfolio is serviced by ReliaMax Lending Services LLC and insured by ReliaMax Surety Company. This portfolio purchase builds on the Company's existing student loan platform. |
SUMMARY OF SIGNIFICANT ACCOUN31
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2017 | |
Accounting Policies [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in financial technology companies. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities. The Trust is not included in the consolidated financial statements of the Company. All significant intercompany balances and transactions have been eliminated. |
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION | NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, residential real estate, and premium finance loans. The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis through its MPS and tax services divisions. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments. |
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS | USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the allowance for loan losses, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future. |
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD | CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank ("FRB"), based on a percentage of deposits. The total of those reserve balances was $ 1.5 million at September 30, 2017 , and there were no such reserve balances at September 30, 2016. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2017 , the Company had no interest-bearing deposits held at the FHLB and $ 1.23 billion in interest-bearing deposits held at the FRB. At September 30, 2017 , the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent. |
SECURITIES | SECURITIES 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 (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial did not hold trading securities at September 30, 2017. The Company classifies the majority of its securities as AFS. AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done. Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned. The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or 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 that utilizes several sources for valuing fixed-income securities. Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Securities Impairment Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves the consideration 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 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. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value. If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes. The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. In fiscal 2017 , 2016 and 2015 , there was no other-than-temporary impairment recorded. |
LOANS RECEIVABLE | LOANS RECEIVABLE Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method. As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR. For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider. Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan. Generally, when a loan becomes delinquent 90 days or more for retail bank loans or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. The loan will remain on a non-accrual status until six months of good payment history. Specialty finance loans and Payment segment loans are generally not placed on non-accrual status, but are instead written off when the collection of principal and interest becomes doubtful. |
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS | MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS The Company, from time to time, sells loan participations, generally without recourse. Sold loans are not included in the consolidated financial statements. The Bank generally retains the right to service the sold loans for a fee. At September 30, 2017 and 2016, the Bank was servicing loans for others with aggregate unpaid principal balances of $ 21.8 million and $ 19.4 million, respectively. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses represents management’s estimate of probable loan losses that 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 and peer group’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. The allowance consists of specific, general and unallocated components. The specific component relates to impaired loans. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Often this is associated with a delay or shortfall in payments of 90 days or more for retail bank loans categories. Non-accrual loans and all TDRs are considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. 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. 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 reserve covers retail bank loans not considered impaired and is determined based upon both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2017 and 2016 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”). • The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past seven years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized. • A seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors. • The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off. The LEP is only applied to the non-classified loan general reserve. Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment. 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. The other loan portfolios primarily utilize a general reserve process that primarily uses historical factors related to the specific loan portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are written off after a loan becomes past due greater than 210 days for premium finance loans, 180 days for tax and other specialty lending loans and 90 days for other loans. |
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS | FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses. Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs. |
INCOME TAXES | INCOME TAXES The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes , the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in income tax expense. |
PREMISES, FURNITURE, AND EQUIPMENT | PREMISES, FURNITURE AND EQUIPMENT Land is carried at cost. Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization. Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts. Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs. |
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) | EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company. At September 30, 2017 and 2016, all shares in the ESOP were allocated. |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements. |
GOODWILL | GOODWILL Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment. The Company performs its impairment evaluation as of September 30 of each fiscal year. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the consolidated financial statements. No goodwill impairment was recognized during the years ended September 30, 2017, 2016 or 2015. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security. Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction. Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability. The securities underlying the agreements remain in the asset accounts of the Company. |
REVENUE RECOGNITION | REVENUE RECOGNITION Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment. Income from service and other customer charges is recognized as earned. Revenue within the Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. |
EARNINGS PER COMMON SHARE ("EPS") | EARNINGS PER COMMON SHARE (“EPS”) 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. |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity. |
STOCK COMPENSATION | STOCK COMPENSATION 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 restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. |
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. The Company is currently undertaking a data analysis and ensuring its systems are capturing data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018. ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. – breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company 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 has finalized their initial assessment of the ASU and expects that the standard will be immaterial to the consolidated financial statements with the Company's current leases. ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing all income streams, including different prepaid card programs so as 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 the Company has determined that this update will 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 early adopted the standard in the Company's third quarter of fiscal year 2017. Under the new standard, excess tax benefits and deficiencies related to employee stock-based compensation will be recognized directly within income tax expense or benefit in the consolidated statement of operations, rather than within additional paid-in capital. Additionally, as permitted under the new standard, the Company made an accounting policy election to account for forfeitures of awards as they occur, which represents a change from the current requirement to estimate forfeitures when recognizing compensation expense. The impact of applying that guidance reduced reported income tax expense by $0.5 million for the quarter ended June 30, 2017. All income tax-related cash flows resulting from share-based payments are reported as an operating activity in the consolidated statements of cash flows. The Company elected to adopt the change in cash flow classification on a prospective basis, which resulted in an increase to net cash from operating activities and a corresponding decrease to net cash from financing activities in the accompanying consolidated statement of cash flows. 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 periods 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. ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the consolidated financial statements. ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities This ASU targets improving the accounting treatment for hedging activities and provides more flexibility in defining what can be hedged, less earnings volatility due to ineffective hedges, and less arduous documentation requirements. The ASU also offers the ability to reclassify prepayable debt securities from HTM to AFS and subsequently sell the securities, as long as the securities are eligible to be hedged. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company is currently assessing the potential impact of early adoption for reclassification of certain prepayable debt securities from HTM to AFS. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
EPS Financial, LLC [Member] | |
Business Acquisition [Line Items] | |
Approximate Fair Value of Assets Acquired and Liabilities Assumed | The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the consolidated balance sheet 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 |
Specialty Consumer Services [Member] | |
Business Acquisition [Line Items] | |
Approximate Fair Value of Assets Acquired and Liabilities Assumed | As of December 14, 2016 (Dollars in Thousands) Fair value of consideration paid 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 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Year-end Loans Receivable | Year-end loans receivable were as follows: September 30, 2017 September 30, 2016 (Dollars in Thousands) 1-4 Family Real Estate $ 196,706 $ 162,298 Commercial and Multi-Family Real Estate 585,510 422,932 Agricultural Real Estate 61,800 63,612 Consumer 163,004 37,094 Commercial Operating 35,759 31,271 Agricultural Operating 33,594 37,083 Premium Finance 250,459 171,604 Total Loans Receivable 1,326,832 925,894 Allowance for Loan Losses (7,534 ) (5,635 ) Net Deferred Loan Origination Fees (1,461 ) (789 ) Total Loans Receivable, Net $ 1,317,837 $ 919,470 |
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans | Annual activity in the allowance for loan losses was as follows: Year ended September 30, 2017 2016 2015 (Dollars in Thousands) Beginning balance $ 5,635 $ 6,255 $ 5,397 Provision for loan losses 10,589 4,605 1,465 Recoveries 307 147 123 Charge offs (8,997 ) (5,372 ) (730 ) Ending balance $ 7,534 $ 5,635 $ 6,255 Allowance for Loan Losses and Recorded Investment in loans at September 30, 2017 and 2016 were as follows: 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2017 Allowance for loan losses: Beginning balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Provision (recovery) for loan losses 149 610 1,248 6,830 1,165 (160 ) 773 (26 ) 10,589 Charge offs — (138 ) — (7,084 ) (1,149 ) — (626 ) — (8,997 ) Recoveries — — — 209 25 12 61 — 307 Ending balance $ 803 $ 2,670 $ 1,390 $ 6 $ 158 $ 1,184 $ 796 $ 527 $ 7,534 Ending balance: individually evaluated for impairment — — — — — — — — — Ending balance: collectively evaluated for impairment 803 2,670 1,390 6 158 1,184 796 527 7,534 Total $ 803 $ 2,670 $ 1,390 $ 6 $ 158 $ 1,184 $ 796 $ 527 $ 7,534 Loans: Ending balance: individually evaluated for impairment 72 1,109 — — — — — — 1,181 Ending balance: collectively evaluated for impairment 196,634 584,401 61,800 163,004 35,759 33,594 250,459 — 1,325,651 Total $ 196,706 $ 585,510 $ 61,800 $ 163,004 $ 35,759 $ 33,594 $ 250,459 $ — $ 1,326,832 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2016 Allowance for loan losses: Beginning balance $ 278 $ 1,187 $ 163 $ 20 $ 28 $ 3,537 $ 293 $ 749 $ 6,255 Provision (recovery) for loan losses 408 1,369 (21 ) 748 338 1,045 914 (196 ) 4,605 Charge offs (32 ) (385 ) — (728 ) (249 ) (3,252 ) (726 ) — (5,372 ) Recoveries — 27 — 11 — 2 107 — 147 Ending balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Ending balance: individually evaluated for impairment 10 — — — — — — — 10 Ending balance: collectively evaluated for impairment 644 2,198 142 51 117 1,332 588 553 5,625 Total $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Loans: Ending balance: individually evaluated for impairment 162 433 — — — — — — 595 Ending balance: collectively evaluated for impairment 162,136 422,499 63,612 37,094 31,271 37,083 171,604 — 925,299 Total $ 162,298 $ 422,932 $ 63,612 $ 37,094 $ 31,271 $ 37,083 $ 171,604 $ — $ 925,894 |
Asset Classification of Loans | The asset classification of loans at September 30, 2017 , and 2016 , were as follows: September 30, 2017 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 195,838 $ 574,730 $ 27,376 $ 163,004 $ 35,759 $ 18,394 $ 250,459 $ 1,265,560 Watch 525 10,200 2,006 — — 4,541 — 17,272 Special Mention 247 201 2,939 — — — — 3,387 Substandard 96 379 29,479 — — 10,659 — 40,613 Doubtful — — — — — — — — $ 196,706 $ 585,510 $ 61,800 $ 163,004 $ 35,759 $ 33,594 $ 250,459 $ 1,326,832 September 30, 2016 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 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 September 30, 2017 and 2016 were as follows: September 30, 2017 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 370 $ 79 $ — $ 449 $ 196,257 $ — $ 196,706 Commercial and Multi-Family Real Estate — — — — 584,825 685 585,510 Agricultural Real Estate — — 34,198 34,198 27,602 — 61,800 Consumer 2,512 558 1,406 4,476 158,528 — 163,004 Commercial Operating — — — — 35,759 — 35,759 Agricultural Operating — — 97 97 33,497 — 33,594 Premium Finance 1,509 2,442 1,205 5,156 245,303 — 250,459 Total $ 4,391 $ 3,079 $ 36,906 $ 44,376 $ 1,281,771 $ 685 $ 1,326,832 September 30, 2016 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ — $ 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 September 30, 2017 and 2016 were as follows: Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2017 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 72 $ 72 $ — Commercial and Multi-Family Real Estate 1,109 1,109 — Total $ 1,181 $ 1,181 $ — Loans with a specific valuation allowance Total $ — $ — $ — Recorded Balance Unpaid Principal Balance Specific Allowance 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 Cash interest collected on impaired loans was not material during the years ended September 30, 2017 and 2016 . The following table provides the average recorded investment in impaired loans for the years ended September 30, 2017 and 2016 . Year Ended September 30, 2017 2016 Average Recorded Investment Average Recorded Investment 1-4 Family Real Estate $ 176 $ 144 Commercial and Multi-Family Real Estate 883 1,117 Agricultural Real Estate 146 — Commercial Operating 202 6 Agricultural Operating 268 2,919 Total $ 1,675 $ 4,186 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Transfers and Servicing [Abstract] | |
Unpaid Principal Balances of Loans Serviced for Others | Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at year-end were as follows: September 30, 2017 2016 2015 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 3,162 $ 3,980 $ 5,055 Other 18,649 15,452 17,156 $ 21,811 $ 19,432 $ 22,211 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Sep. 30, 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 the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2017 , 2016 and 2015 is presented below. 2017 2016 (1) 2015 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 44,917 $ 33,220 $ 18,055 Weighted average common shares outstanding 9,247,092 8,443,956 6,730,086 Basic income per common share $ 4.86 $ 3.93 $ 2.68 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 44,917 $ 33,220 $ 18,055 Weighted average common shares outstanding 9,247,092 8,443,956 6,730,086 Outstanding options - based upon the two-class method 55,652 53,390 61,499 Weighted average diluted common shares outstanding 9,302,744 8,497,346 6,791,585 Diluted income per common share $ 4.83 $ 3.91 $ 2.66 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | Securities available for sale at September 30, 2017 and 2016 were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Small business administration securities 57,046 825 — 57,871 Non-bank qualified obligations of states and political subdivisions 938,883 14,983 (3,037 ) 950,829 Asset-backed securities 94,451 2,381 — 96,832 Mortgage-backed securities 588,918 1,259 (3,723 ) 586,454 Total debt securities 1,679,298 19,448 (6,760 ) 1,691,986 Common equities and mutual funds 1,009 436 — 1,445 Total available for sale securities $ 1,680,307 $ 19,884 $ (6,760 ) $ 1,693,431 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2016 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Trust preferred and corporate 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 | Securities held to maturity at September 30, 2017 and 2016 were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2017 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,247 $ 157 $ (36 ) $ 19,368 Non-bank qualified obligations of states and political subdivisions 430,593 4,744 (2,976 ) 432,361 Mortgage-backed securities 113,689 — (1,233 ) 112,456 Total held to maturity securities $ 563,529 $ 4,901 $ (4,245 ) $ 564,185 AMORTIZED GROSS UNREALIZED GROSS UNREALIZED FAIR At September 30, 2016 COST GAINS (LOSSES) VALUE (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 |
Trust Preferred Securities Included in Available-for-sale Securities | Included in securities available for sale are trust preferred securities as follows: At September 30, 2016 Issuer (1) Amortized Cost Fair Value Unrealized Gain (Loss) S&P Credit Rating Moody's Credit Rating (Dollars in Thousands) Key Corp. Capital I $ 4,987 $ 4,189 $ (798 ) BB+ Baa2 Huntington Capital Trust II SE 4,981 4,077 (904 ) BB Baa2 PNC Capital Trust 4,968 4,712 (256 ) BBB- Baa1 Total $ 14,936 $ 12,978 $ (1,958 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. |
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 continuous unrealized loss position at September 30, 2017 , and 2016 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Non-bank qualified obligations of states and political subdivisions 280,900 (2,887 ) 5,853 (150 ) 286,753 (3,037 ) Mortgage-backed securities 237,897 (1,625 ) 100,287 (2,098 ) 338,184 (3,723 ) Total debt securities 518,797 (4,512 ) 106,140 (2,248 ) 624,937 (6,760 ) Total available for sale securities $ 518,797 $ (4,512 ) $ 106,140 $ (2,248 ) $ 624,937 $ (6,760 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate 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 September 30, 2017 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,364 $ (6 ) $ 4,089 $ (30 ) $ 5,453 $ (36 ) Non-bank qualified obligations of states and political subdivisions 202,018 (2,783 ) 6,206 (193 ) 208,224 (2,976 ) Mortgage-backed securities 112,456 (1,233 ) — — 112,456 (1,233 ) Total held to maturity securities $ 315,838 $ (4,022 ) $ 10,295 $ (223 ) $ 326,133 $ (4,245 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2016 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (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 are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ — $ — Due after one year through five years 36,586 37,674 Due after five years through ten years 347,831 358,198 Due after ten years 705,963 709,660 1,090,380 1,105,532 Mortgage-backed securities 588,918 586,454 Common equities and mutual funds 1,009 1,445 Total available for sale securities $ 1,680,307 $ 1,693,431 AMORTIZED COST FAIR VALUE 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 COST FAIR VALUE At September 30, 2017 (Dollars in Thousands) Due in one year or less $ 1,483 $ 1,480 Due after one year through five years 17,926 18,160 Due after five years through ten years 144,996 147,832 Due after ten years 285,435 284,257 449,840 451,729 Mortgage-backed securities 113,689 112,456 Total held to maturity securities $ 563,529 $ 564,185 AMORTIZED COST FAIR VALUE 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 |
Summary of Activities Related to Sale of Securities Available for Sale | Activities related to the sale of securities are summarized below. 2017 2016 2015 September 30, (Dollars in Thousands) Available For Sale Proceeds from sales $ 457,306 $ 285,508 $ 566,371 Gross gains on sales 4,091 1,459 2,753 Gross losses on sales 4,628 1,785 4,387 Net (loss) on available for sale securities (537 ) (326 ) (1,634 ) Held To Maturity Net carrying amount of securities sold $ 5,826 $ — $ — Gross realized gain on sales 92 — — Gross realized losses on sales 48 — — Net gain on held to maturity securities 44 — — |
PREMISES, FURNITURE, AND EQUI37
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Property, Plant and Equipment [Abstract] | |
Summary of Year-End Premises and Equipment | Year-end premises and equipment were as follows: September 30, 2017 2016 (Dollars in Thousands) Land $ 1,578 $ 1,578 Buildings 10,642 10,482 Furniture, fixtures, and equipment 46,934 41,756 Capitalized leases 2,259 2,259 61,413 56,075 Less: accumulated depreciation and amortization (42,093 ) (37,449 ) Net book value $ 19,320 $ 18,626 |
TIME CERTIFICATES OF DEPOSITS (
TIME CERTIFICATES OF DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Certificates of Deposits | At September 30, 2017 , the scheduled maturities of time certificates of deposits were as follows for the years ending: As of September 30, (Dollars in Thousands) 2018 $ 560,825 2019 10,943 2020 5,158 2021 2,412 2022 2,227 Thereafter — Total Certificates (1) $ 581,565 |
SHORT TERM AND LONG TERM DEBT (
SHORT TERM AND LONG TERM DEBT (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Debt Disclosure [Abstract] | |
Schedule of Short-term Debt | Short Term Debt September 30, 2017 2016 Overnight federal funds purchased $ 987,000 $ 992,000 Short-term FHLB advances 415,000 100,000 Short-term capital lease 62 79 Repurchase agreements 2,472 3,039 Total 1,404,534 1,095,118 |
Schedule of Repurchase Agreements | An analysis of securities sold under agreements to repurchase at September 30, 2017 and 2016 follows: September 30, 2017 2016 (Dollars in Thousands) Highest month-end balance $ 3,782 $ 3,468 Average balance 2,225 2,179 Weighted average interest rate for the year 0.98 % 0.60 % Weighted average interest rate at year end 1.59 % 0.61 % |
Schedule of Long-term Debt | Long Term Debt September 30, 2017 2016 (Dollars in Thousands) Long-term FHLB advances $ — $ 7,000 Trust preferred securities 10,310 10,310 Subordinated debentures (net of issuance costs) 73,347 73,211 Long-term capital lease 1,876 1,939 Total 85,533 92,460 |
Scheduled maturities of FHLB advances | scheduled maturities of the Company's long-term debt were as follows for the years ending: September 30, (Dollars in Thousands) Trust preferred securities Subordinated debentures Long-term capital lease Total 2018 $ — $ — $ — $ — 2019 — — 65 65 2020 — — 72 72 2021 — — 77 77 2022 — — 82 82 Thereafter 10,310 73,347 1,580 85,237 Total long-term debt $ 10,310 $ 73,347 $ 1,876 $ 85,533 |
EMPLOYEE STOCK OWNERSHIP AND 40
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |
Year-End ESOP Shares | Year-end ESOP shares are as follows: At September 30, 2017 2016 2015 (Dollars in Thousands) Allocated shares 256,219 262,872 256,283 Unearned shares — — — Total ESOP shares 256,219 262,872 256,283 Fair value of unearned shares $ — $ — $ — |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded | The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2017 , 2017 and 2016. Year Ended September 30, 2017 2016 2015 (Dollars in Thousands) Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively $ 6,486 $ 559 $ 334 |
Activity of Options | September 30, 2017 and 2016 . Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2016 125,560 $ 25.73 2.68 $ 4,379 Granted — — — — Exercised (29,386 ) 33.38 — 1,790 Forfeited or expired (20,417 ) 26.25 — 1,464 Options outstanding, September 30, 2017 75,757 $ 22.62 2.28 $ 4,225 Options exercisable end of year 75,757 $ 22.62 2.28 $ 4,225 Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2015 189,088 $ 25.74 3.16 $ 3,027 Granted — — — — Exercised (63,528 ) 25.77 — 1,510 Forfeited or expired — — — — Options outstanding, September 30, 2016 125,560 $ 25.73 2.68 $ 4,379 Options exercisable end of year 125,560 $ 25.73 2.68 $ 4,379 |
Activity of Nonvested (Restricted) Shares | Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2016 20,656 $ 41.37 Granted 316,604 87.49 Vested (29,135 ) 64.22 Forfeited or expired (3,599 ) 56.39 Nonvested shares outstanding, September 30, 2017 304,526 $ 86.96 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2015 44,002 $ 40.80 Granted 8,154 42.49 Vested (33,666 ) 40.93 Forfeited or expired 2,166 46.98 Nonvested shares outstanding, September 30, 2016 20,656 $ 41.37 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Provision for Income Taxes | The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following: Years ended September 30, 2017 2016 2015 (Dollars in Thousands) Federal: Current $ 12,153 $ 4,410 $ 4,217 Deferred (5,040 ) (440 ) (3,896 ) 7,113 3,970 321 State: Current 4,366 1,422 1,048 Deferred (1,246 ) 210 (1 ) 3,120 1,632 1,047 Income tax expense $ 10,233 $ 5,602 $ 1,368 |
Reconciliation of Total Income Tax Expense | Total income tax expense differs from the statutory federal income tax rate as follows: Years ended September 30, 2017 2016 2015 (Dollars in Thousands) Income tax expense at federal tax rate $ 19,303 $ 13,588 $ 6,798 Increase (decrease) resulting from: State income taxes net of federal benefit 2,014 933 692 Nontaxable buildup in cash surrender value (776 ) (580 ) (711 ) Stock based compensation (593 ) (66 ) (37 ) Tax exempt income (9,991 ) (8,257 ) (5,230 ) Nondeductible expenses 316 196 188 Other, net (40 ) (212 ) (332 ) Total income tax expense $ 10,233 $ 5,602 $ 1,368 |
Components of Net Deferred Tax Asset (Liability) | The components of the net deferred tax asset (liability) at September 30, 2017 and 2016 were: September 30, 2017 2016 (Dollars in Thousands) Deferred tax assets: Bad debts $ 2,832 $ 2,044 Deferred compensation 1,548 1,345 Stock based compensation 3,436 265 Operational reserve 645 540 AMT Credit 1,869 5,563 Intangibles 5,235 393 Indirect tax benefits of unrecognized tax positions 266 216 Other assets 1,933 1,362 17,764 11,728 Deferred tax liabilities: FHLB stock dividend (425 ) (411 ) Premises and equipment (1,789 ) (1,913 ) Patents (842 ) (988 ) Prepaid expenses (673 ) (668 ) Net unrealized gains on securities available for sale (4,934 ) (12,348 ) (8,663 ) (16,328 ) Net deferred tax assets (liabilities) $ 9,101 $ (4,600 ) |
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2017 , and 2016 follows: September 30, 2017 2016 (Dollars in Thousands) Balance at beginning of year $ 525 $ 974 Additions for tax positions related to the current year 192 63 Additions for tax positions related to the prior years 31 — Reductions for tax positions due to settlement with taxing authorities — (372 ) Reductions for tax positions related to prior years (103 ) (140 ) Balance at end of year $ 645 $ 525 |
CAPITAL REQUIREMENTS AND REST43
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract] | |
Bank's Actual and Required Capital Amount and Ratios | The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity. Company Bank Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions September 30, 2017 Tier 1 leverage ratio 7.64 % 9.64 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 13.97 18.22 4.50 6.50 Tier 1 capital ratio 14.46 18.22 6.00 8.00 Total qualifying capital ratio 18.41 18.59 8.00 10.00 September 30, 2016 Tier 1 leverage ratio 8.35 % 10.35 % 4.00 % 5.00 % Common equity Tier 1 capital ratio 17.28 21.95 4.50 6.50 Tier 1 capital ratio 17.82 21.95 6.00 8.00 Total qualifying capital ratio 23.17 22.35 8.00 10.00 |
Reconciliation of Required Capital Amount and Ratios | The following table provides a reconciliation of the amounts included in the table above for the Company. Standardized Approach (1) September 30, 2017 (Dollars in Thousands) Total equity $ 434,496 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 95,332 LESS: Certain other intangible assets 41,743 LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 1,495 LESS: Net unrealized gains (losses) on available-for-sale securities 9,166 Common Equity Tier 1 (1) 286,760 Long-term debt and other instruments qualifying as Tier 1 10,310 LESS: Additional tier 1 capital deductions 374 Total Tier 1 capital 296,696 Allowance for loan losses 7,718 Subordinated debentures (net of issuance costs) 73,347 Total qualifying capital 377,761 (1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Leases [Abstract] | |
Total Minimum Rental Commitment for Operating and Capital Leases | The following table shows the total minimum rental commitment for our operating and capital leases for each of the years presented below as of September 30, 2017 . Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2018 $ 2,486 $ 179 2019 2,287 179 2020 2,289 182 2021 2,143 182 2022 1,882 182 Thereafter 17,922 2,240 Total Leases Commitments $ 29,009 $ 3,144 Amounts representing interest $ 1,206 Present value of net minimum lease payments 1,938 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Segment Reporting [Abstract] | |
Segment Information of Entity | Payments Banking Corporate Services/Other Total Year Ended September 30, 2017 Interest income $ 13,845 $ 52,231 $ 42,027 $ 108,103 Interest expense 503 2,723 11,647 14,873 Net interest income 13,342 49,508 30,380 93,230 Provision for loan losses 7,613 2,976 — 10,589 Non-interest income 165,707 4,685 1,780 172,172 Non-interest expense 132,984 24,520 42,159 199,663 Income (loss) before income tax expense (benefit) 38,452 26,697 (9,999 ) 55,150 Total assets 185,521 1,343,968 3,698,843 5,228,332 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,436,893 229,969 556,562 3,223,424 Payments Banking Corporate Services/Other Total Year Ended September 30, 2016 Interest income $ 9,711 $ 38,321 $ 33,364 $ 81,396 Interest expense 181 1,331 2,579 4,091 Net interest income 9,530 36,990 30,785 77,305 Provision for loan losses 971 3,634 — 4,605 Non-interest income 95,261 4,280 1,229 100,770 Non-interest expense 77,411 23,001 34,236 134,648 Income (loss) before income tax expense (benefit) 26,409 14,635 (2,222 ) 38,822 Total assets 87,311 946,420 2,972,688 4,006,419 Total goodwill 25,350 11,578 — 36,928 Total deposits 2,131,042 299,030 10 2,430,082 Payments Banking Corporate Services/Other Total Year Ended September 30, 2015 Interest income $ 7,261 $ 31,394 $ 22,952 $ 61,607 Interest expense 169 1,377 841 2,387 Net interest income 7,092 30,017 22,111 59,220 Provision for loan losses — 689 776 1,465 Non-interest income 54,417 3,358 399 58,174 Non-interest expense 47,731 19,028 29,747 96,506 Income (loss) before income tax expense (benefit) 13,778 13,658 (8,013 ) 19,423 Total assets 93,336 724,834 1,711,535 2,529,705 Total goodwill 25,350 11,578 — 36,928 Total deposits 1,424,304 233,235 (5 ) 1,657,534 |
PARENT COMPANY FINANCIAL STAT46
PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Condensed Financial Information of Parent Company Only Disclosure [Abstract] | |
Condensed Statements of Financial Condition | CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, 2017 2016 (Dollars in Thousands) ASSETS Cash and cash equivalents $ 14,569 $ 15,716 Investment in subsidiaries 521,021 403,574 Other assets 406 413 Total assets $ 535,996 $ 419,703 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Long term debt $ 83,657 $ 83,521 Other liabilities 17,843 1,207 Total liabilities $ 101,500 $ 84,728 STOCKHOLDERS' EQUITY Common stock $ 96 $ 85 Additional paid-in capital 258,336 184,780 Retained earnings 167,164 127,190 Accumulated other comprehensive income 9,166 22,920 Treasury stock, at cost (266 ) — Total stockholders' equity $ 434,496 $ 334,975 Total liabilities and stockholders' equity $ 535,996 $ 419,703 |
Condensed Statements of Operations | CONDENSED STATEMENTS OF OPERATIONS Years Ended September 30, 2017 2016 2015 (Dollars in Thousands) Interest expense $ 4,959 $ 1,022 $ 418 Other expense 440 382 269 Total expense 5,399 1,404 687 Gain (loss) before income taxes and equity in undistributed net income of subsidiaries (5,399 ) (1,404 ) (687 ) Income tax (benefit) (1,935 ) (519 ) (324 ) Gain (loss) before equity in undistributed net income of subsidiaries (3,464 ) (885 ) (363 ) Equity in undistributed net income of subsidiaries 48,381 34,105 18,418 Net income $ 44,917 $ 33,220 $ 18,055 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2017 2016 2015 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 44,917 $ 33,220 $ 18,055 Adjustments to reconcile net income to net cash provided by (used in) operating activities Depreciation, amortization and accretion, net 136 (22 ) — Equity in undistributed net income of subsidiaries (48,381 ) (34,105 ) (18,418 ) Stock compensation 10,401 427 253 Change in other assets 7 (5 ) (15 ) Change in other liabilities 16,636 541 378 Net cash provided by (used in) operating activities 23,716 56 253 CASH FLOWS FROM INVESTING ACTIVITES Capital contributions to subsidiaries (82,820 ) (81,000 ) (67,600 ) Net cash used in investing activities (82,820 ) (81,000 ) (67,600 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (4,839 ) (4,389 ) (3,493 ) Purchase of shares by ESOP 1,174 — — Proceeds from contingent consideration - equity 24,142 — — Proceeds from exercise of stock options & issuance of common stock 650 13,536 75,681 Issuance of common shares due to acquisition 37,296 — — Issuance of restricted stock 4 — — Proceeds from long term debt — 75,000 — Payment of debt issuance costs — (1,767 ) — Shares repurchased for tax withholdings on stock compensation (470 ) — — Other, net — — — Net cash provided by financing activities 57,957 82,380 72,188 Net change in cash and cash equivalents $ (1,147 ) $ 1,436 $ 4,841 CASH AND CASH EQUIVALENTS Beginning of year $ 15,716 $ 14,280 $ 9,439 End of year $ 14,569 $ 15,716 $ 14,280 |
SELECTED QUARTERLY FINANCIAL 47
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |
Selected Quarterly Financial Data | QUARTER ENDED December 31 March 31 June 30 September 30 (Dollars in Thousands) Fiscal Year 2017 Interest income $ 22,575 $ 27,718 $ 28,861 $ 28,949 Interest expense 2,742 3,752 3,918 4,461 Net interest income 19,833 23,966 24,943 24,488 Provision (recovery) for loan losses 843 8,649 1,240 (144 ) Net Income 1,244 32,142 9,787 1,744 Earnings per common and common equivalent share Basic $ 0.14 $ 3.44 $ 1.05 $ 0.19 Diluted 0.14 3.42 1.04 0.19 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2016 Interest income $ 18,275 $ 20,629 $ 20,763 $ 21,729 Interest expense 720 691 844 1,836 Net interest income 17,555 19,938 19,919 19,893 Provision for loan losses 786 1,173 2,098 548 Net Income 4,058 14,283 8,873 6,006 Earnings per common and common equivalent share Basic $ 0.49 $ 1.68 $ 1.04 $ 0.70 Diluted 0.49 1.67 1.04 0.70 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2015 Interest income $ 14,232 $ 15,758 $ 15,254 $ 16,363 Interest expense 661 473 593 660 Net interest income 13,571 15,285 14,661 15,703 Provision for loan losses 48 593 700 124 Net Income 3,595 5,181 4,640 4,639 Earnings per common and common equivalent share Basic $ 0.58 $ 0.79 $ 0.67 $ 0.64 Diluted 0.58 0.78 0.66 0.63 Dividend declared per share 0.13 0.13 0.13 0.13 |
FAIR VALUES OF FINANCIAL INST48
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 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 September 30, 2017 and 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 September 30, 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 57,871 — 57,871 — — — — — Obligations of states and political subdivisions — — — — 19,368 — 19,368 — Non-bank qualified obligations of states and political subdivisions 950,829 — 950,829 — 432,361 — 432,361 — Asset-backed securities 96,832 — 96,832 — — — — — Mortgage-backed securities 586,454 — 586,454 — 112,456 — 112,456 — Total debt securities 1,691,986 — 1,691,986 — 564,185 — 564,185 — Common equities and mutual funds 1,445 1,445 — — — — — — Total securities $ 1,693,431 $ 1,445 $ 1,691,986 $ — $ 564,185 $ — $ 564,185 $ — 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 and corporate 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 following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of September 30, 2017 and 2016 . Fair Value at September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 Fair Value At September 30, 2016 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family real estate $ 68 $ — $ — $ 68 Total 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 September 30, 2017 Fair Value at September 30, 2016 Valuation Technique Unobservable Input Impaired Loans, net $ — $ 68 Market approach Appraised values (1) Foreclosed Assets, net 292 76 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10% . |
Carrying 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 September 30, 2017 and 2016 . September 30, 2017 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 1,267,586 $ 1,267,586 $ 1,267,586 $ — $ — Securities available for sale 1,693,431 1,693,431 1,445 1,691,986 — Securities held to maturity 563,529 564,185 — 564,185 — Total securities 2,256,960 2,257,616 1,445 2,256,171 — Loans receivable: One to four family residential mortgage loans 196,706 196,970 — — 196,970 Commercial and multi-family real estate loans 585,510 576,330 — — 576,330 Agricultural real estate loans 61,800 61,584 — — 61,584 Consumer loans 163,004 163,961 — — 163,961 Commercial operating loans 35,759 35,723 — — 35,723 Agricultural operating loans 33,594 32,870 — — 32,870 Premium finance loans 250,459 250,964 — — 250,964 Total loans receivable 1,326,832 1,318,402 — — 1,318,402 Federal Home Loan Bank stock 61,123 61,123 — 61,123 — Accrued interest receivable 19,380 19,380 19,380 — — Financial liabilities Non-interest bearing demand deposits 2,454,057 2,454,057 2,454,057 — — Interest bearing demand deposits, savings, and money markets 169,557 169,557 169,557 — — Certificates of deposit 123,637 123,094 — 123,094 — Wholesale non-maturing deposits 18,245 18,245 18,245 — — Wholesale certificates of deposits 457,928 457,509 — 457,509 — Total deposits 3,223,424 3,222,462 2,641,859 580,603 — Advances from Federal Home Loan Bank 415,000 415,003 — 415,003 — Federal funds purchased 987,000 987,000 987,000 — — Securities sold under agreements to repurchase 2,472 2,472 — 2,472 — Capital leases 1,938 1,938 — 1,938 — Trust preferred securities 10,310 10,447 — 10,447 — Subordinated debentures 73,347 76,500 — 76,500 — Accrued interest payable 2,280 2,280 2,280 — — September 30, 2016 Carrying Amount Estimated Fair Value 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 Non-interest 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 leases 2,018 2,018 — 2,018 — Trust preferred 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) | 12 Months Ended |
Sep. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Changes in Carrying Amount of Goodwill and Intangible Assets | The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2017 and 2016 are as follows: September 30, 2017 2016 (Dollars in Thousands) Goodwill Beginning balance $ 36,928 $ 36,928 Acquisitions during the period 61,795 — Write-offs during the period — — Ending balance $ 98,723 $ 36,928 The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2017 . Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (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 6,947 46,397 Amortization during the period (598 ) (525 ) (10,405 ) (835 ) (12,363 ) Write-offs during the period — — (10,248 ) (529 ) (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Balance upon acquisition $ 10,990 $ 2,480 $ 57,810 $ 10,502 $ 81,782 Accumulated amortization $ (939 ) $ (698 ) $ (15,855 ) $ (1,335 ) $ (18,827 ) Accumulated impairment $ — $ — $ (10,248 ) $ (529 ) $ (10,777 ) Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer Relationships (3) Technology/Other (4) Total Intangibles Balance as of September 30, 2015 $ 5,439 $ 227 $ 24,811 $ 3,100 $ 33,577 Acquisitions during the period — — — 172 172 Amortization during the period (290 ) (100 ) (4,221 ) (217 ) (4,828 ) Write-offs during the period — — — — — Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Balance upon acquisition $ 5,490 $ 300 $ 26,040 $ 3,539 $ 35,369 Accumulated amortization $ (341 ) $ (173 ) $ (5,450 ) $ (484 ) $ (6,448 ) Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 (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 Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The Company recorded a $10.2 million intangible impairment charge during the fourth quarter of fiscal 2017 related to the non-renewal of the H&R Block relationship. The weighted-average amortization period, by major intangible asset class and in total, for each of the acquisitions during fiscal year 2017 were as follows: Weighted Average Amortization Period Intangible EPS SCS Trademark 15.0 5.0 Non-Compete 3.0 4.1 Customer Relationships 20.0 9.1 Technology/Other 3.0 15.0 Total 16.1 10.2 |
Anticipated Future Amortization of Intangibles | The anticipated future amortization of intangibles is as follows: September 30, (Dollars in Thousands) 2018 $ 7,706 2019 7,147 2020 5,749 2021 5,179 2022 4,257 Thereafter 22,140 Total anticipated intangible amortization $ 52,178 |
SUMMARY OF SIGNIFICANT ACCOUN50
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2017USD ($)$ / shares | Jun. 30, 2017$ / shares | Mar. 31, 2017$ / shares | Dec. 31, 2016$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016$ / shares | Mar. 31, 2016$ / shares | Dec. 31, 2015$ / shares | Sep. 30, 2015$ / shares | Jun. 30, 2015$ / shares | Mar. 31, 2015$ / shares | Dec. 31, 2014$ / shares | Sep. 30, 2017USD ($)segment$ / shares | Sep. 30, 2016USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | ||||
PRINCIPLES OF CONSOLIDATION [Abstract] | ||||||||||||||||||
Percentage of interest in subsidiary | 100.00% | 100.00% | ||||||||||||||||
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract] | ||||||||||||||||||
Number of reporting segments | segment | 3 | |||||||||||||||||
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract] | ||||||||||||||||||
Terms of FHLB advances | 90 days | |||||||||||||||||
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank) | $ 1,500 | $ 0 | $ 1,500 | $ 0 | ||||||||||||||
SECURITIES [Abstract] | ||||||||||||||||||
Recorded balance | 0 | 78 | 0 | 78 | ||||||||||||||
Other than temporary impairment | $ 0 | 0 | $ 0 | |||||||||||||||
LOANS RECEIVABLE [Abstract] | ||||||||||||||||||
Period when loan becomes delinquent | 90 days | |||||||||||||||||
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS [Abstract] | ||||||||||||||||||
Aggregate unpaid balance of loans serviced for others | $ 21,800 | $ 19,400 | $ 21,800 | $ 19,400 | ||||||||||||||
ALLOWANCE FOR LOAN LOSSES [Abstract] | ||||||||||||||||||
Look back period | 7 years | |||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 0.19 | $ 1.05 | $ 3.44 | $ 0.14 | $ 0.70 | $ 1.04 | $ 1.68 | $ 0.49 | $ 0.64 | $ 0.67 | $ 0.79 | $ 0.58 | $ 4.86 | [1] | $ 3.93 | [1] | $ 2.68 | [1] |
Diluted (in dollars per share) | $ / shares | $ 0.19 | $ 1.04 | $ 3.42 | $ 0.14 | $ 0.70 | $ 1.04 | $ 1.67 | $ 0.49 | $ 0.63 | $ 0.66 | $ 0.78 | $ 0.58 | $ 4.83 | [1] | $ 3.91 | [1] | $ 2.66 | [1] |
Decrease in Loans Sold | $ 4,720 | $ 89 | $ 5,462 | |||||||||||||||
Net change in loans receivable | $ 274,840 | 217,985 | 146,111 | |||||||||||||||
Buildings [Member] | Minimum [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 10 years | |||||||||||||||||
Buildings [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 40 years | |||||||||||||||||
Leasehold Improvements [Member] | Minimum [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 2 years | |||||||||||||||||
Leasehold Improvements [Member] | Maximum [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Premises, furniture and equipment, estimated useful lives | 15 years | |||||||||||||||||
Scenario, Previously Reported [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Net change in loans receivable | $ 217,807 | $ 135,187 | ||||||||||||||||
FRB [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Interest bearing deposits | $ 1,230,000 | $ 1,230,000 | ||||||||||||||||
FHLB [Member] | ||||||||||||||||||
Investment Holdings [Line Items] | ||||||||||||||||||
Interest bearing deposits | $ 0 | $ 0 | ||||||||||||||||
Accounting Standards Update 2015-06 [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Basic (in dollars per share) | $ / shares | $ 3.93 | |||||||||||||||||
Diluted (in dollars per share) | $ / shares | 3.91 | |||||||||||||||||
Accounting Standards Update 2015-06 [Member] | Scenario, Previously Reported [Member] | ||||||||||||||||||
Property, Plant and Equipment [Line Items] | ||||||||||||||||||
Basic (in dollars per share) | $ / shares | 3.95 | |||||||||||||||||
Diluted (in dollars per share) | $ / shares | $ 3.92 | |||||||||||||||||
[1] | See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91. |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ in Thousands | Dec. 14, 2016USD ($)shares | Nov. 01, 2016USD ($)franchiseshares | Jun. 30, 2017USD ($) | Sep. 30, 2016USD ($)Acquisition | Sep. 30, 2017USD ($) | Sep. 30, 2015USD ($) |
Business Acquisition [Line Items] | ||||||
Number of acquisitions | Acquisition | 2 | |||||
Fair value of consideration paid | ||||||
Contingent consideration - equity | $ 0 | $ 24,142 | $ 0 | |||
Fair value of assets acquired | ||||||
Goodwill resulting from acquisition | $ 36,928 | $ 98,723 | $ 36,928 | |||
Pre-tax transaction related expenses | $ 800 | |||||
EPS Financial, LLC [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Number of ERO's | franchise | 10,000 | |||||
Equity interest issued | shares | 369,179 | |||||
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 | |||||
Pre-tax transaction related expenses | $ 500 | |||||
Specialty Consumer Services [Member] | ||||||
Business Acquisition [Line Items] | ||||||
Equity interest issued | shares | 113,328 | |||||
Fair value of consideration paid | ||||||
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 | |||||
Contingent consideration, performance target earnout payments (in shares) | shares | 264,431 | |||||
Contingent consideration, performance target earnout payments, percent | 100.00% | |||||
Contingent consideration, performance target earnout payments | $ 17,500 |
LOANS RECEIVABLE, NET - Summary
LOANS RECEIVABLE, NET - Summary of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 1,326,832 | $ 925,894 |
Less: | ||
Allowance for Loan Losses | (7,534) | (5,635) |
Net Deferred Loan Origination Fees | (1,461) | (789) |
Total Loans Receivable, Net | 1,317,837 | 919,470 |
1-4 Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 196,706 | 162,298 |
Commercial and Multi-Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 585,510 | 422,932 |
Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 61,800 | 63,612 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 163,004 | 37,094 |
Commercial Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 35,759 | 31,271 |
Agricultural Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 33,594 | 37,083 |
Premium Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 250,459 | $ 171,604 |
LOANS RECEIVABLE, NET - Allowan
LOANS RECEIVABLE, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | |
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | $ 5,635 | $ 6,255 | $ 5,397 | ||
Provision (recovery) for loan losses | (10,589) | (4,605) | (1,465) | ||
Recoveries | 307 | 147 | 123 | ||
Charge offs | (8,997) | (5,372) | (730) | ||
Ending balance | 7,534 | 5,635 | 6,255 | ||
Ending balance: individually evaluated for impairment | $ 0 | $ 10 | |||
Ending balance: collectively evaluated for impairment | 7,534 | 5,625 | |||
Total | 5,635 | 6,255 | 5,397 | 7,534 | 5,635 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 1,181 | 595 | |||
Ending balance: collectively evaluated for impairment | 1,325,651 | 925,299 | |||
Total loans receivable | 1,326,832 | 925,894 | |||
1-4 Family Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 654 | 278 | |||
Provision (recovery) for loan losses | (149) | (408) | |||
Recoveries | 0 | 0 | |||
Charge offs | 0 | (32) | |||
Ending balance | 803 | 654 | 278 | ||
Ending balance: individually evaluated for impairment | 0 | 10 | |||
Ending balance: collectively evaluated for impairment | 803 | 644 | |||
Total | 654 | 278 | 278 | 803 | 654 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 72 | 162 | |||
Ending balance: collectively evaluated for impairment | 196,634 | 162,136 | |||
Total loans receivable | 196,706 | 162,298 | |||
Commercial and Multi-Family Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 2,198 | 1,187 | |||
Provision (recovery) for loan losses | (610) | (1,369) | |||
Recoveries | 0 | 27 | |||
Charge offs | (138) | (385) | |||
Ending balance | 2,670 | 2,198 | 1,187 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 2,670 | 2,198 | |||
Total | 2,198 | 1,187 | 1,187 | 2,670 | 2,198 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 1,109 | 433 | |||
Ending balance: collectively evaluated for impairment | 584,401 | 422,499 | |||
Total loans receivable | 585,510 | 422,932 | |||
Agricultural Real Estate [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 142 | 163 | |||
Provision (recovery) for loan losses | (1,248) | 21 | |||
Recoveries | 0 | 0 | |||
Charge offs | 0 | 0 | |||
Ending balance | 1,390 | 142 | 163 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,390 | 142 | |||
Total | 142 | 163 | 163 | 1,390 | 142 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 61,800 | 63,612 | |||
Total loans receivable | 61,800 | 63,612 | |||
Consumer [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 51 | 20 | |||
Provision (recovery) for loan losses | (6,830) | (748) | |||
Recoveries | 209 | 11 | |||
Charge offs | (7,084) | (728) | |||
Ending balance | 6 | 51 | 20 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 6 | 51 | |||
Total | 51 | 20 | 20 | 6 | 51 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 163,004 | 37,094 | |||
Total loans receivable | 163,004 | 37,094 | |||
Commercial Operating [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 117 | 28 | |||
Provision (recovery) for loan losses | (1,165) | (338) | |||
Recoveries | 25 | 0 | |||
Charge offs | (1,149) | (249) | |||
Ending balance | 158 | 117 | 28 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 158 | 117 | |||
Total | 117 | 28 | 28 | 158 | 117 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 35,759 | 31,271 | |||
Total loans receivable | 35,759 | 31,271 | |||
Agricultural Operating [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 1,332 | 3,537 | |||
Provision (recovery) for loan losses | 160 | (1,045) | |||
Recoveries | 12 | 2 | |||
Charge offs | 0 | (3,252) | |||
Ending balance | 1,184 | 1,332 | 3,537 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 1,184 | 1,332 | |||
Total | 1,332 | 3,537 | 3,537 | 1,184 | 1,332 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 33,594 | 37,083 | |||
Total loans receivable | 33,594 | 37,083 | |||
Premium Finance [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 588 | 293 | |||
Provision (recovery) for loan losses | (773) | (914) | |||
Recoveries | 61 | 107 | |||
Charge offs | (626) | (726) | |||
Ending balance | 796 | 588 | 293 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 796 | 588 | |||
Total | 588 | 293 | 293 | 796 | 588 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 250,459 | 171,604 | |||
Total loans receivable | 250,459 | 171,604 | |||
Unallocated [Member] | |||||
Allowance for Credit Losses [Roll Forward] | |||||
Beginning balance | 553 | 749 | |||
Provision (recovery) for loan losses | 26 | 196 | |||
Recoveries | 0 | 0 | |||
Charge offs | 0 | 0 | |||
Ending balance | 527 | 553 | 749 | ||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 527 | 553 | |||
Total | $ 553 | $ 749 | $ 749 | 527 | 553 |
Loans: | |||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||
Total loans receivable | $ 0 | $ 0 |
LOANS RECEIVABLE, NET - Asset C
LOANS RECEIVABLE, NET - Asset Classification of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 1,326,832 | $ 925,894 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,265,560 | 876,194 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 17,272 | 8,015 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 3,387 | 32,710 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 40,613 | 8,975 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 196,706 | 162,298 |
1-4 Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 195,838 | 161,255 |
1-4 Family Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 525 | 200 |
1-4 Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 247 | 666 |
1-4 Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 96 | 177 |
1-4 Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 585,510 | 422,932 |
Commercial and Multi-Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 574,730 | 421,577 |
Commercial and Multi-Family Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 10,200 | 72 |
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 201 | 962 |
Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 379 | 321 |
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Agricultural Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 61,800 | 63,612 |
Agricultural Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 27,376 | 34,421 |
Agricultural Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,006 | 2,934 |
Agricultural Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 2,939 | 25,675 |
Agricultural Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 29,479 | 582 |
Agricultural Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 163,004 | 37,094 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 163,004 | 37,094 |
Consumer [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 35,759 | 31,271 |
Commercial Operating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 35,759 | 30,574 |
Commercial Operating [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 184 |
Commercial Operating [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial Operating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 513 |
Commercial Operating [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Agricultural Operating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 33,594 | 37,083 |
Agricultural Operating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 18,394 | 19,669 |
Agricultural Operating [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,541 | 4,625 |
Agricultural Operating [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 5,407 |
Agricultural Operating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 10,659 | 7,382 |
Agricultural Operating [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 250,459 | 171,604 |
Premium Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 250,459 | 171,604 |
Premium Finance [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 0 | $ 0 |
LOANS RECEIVABLE, NET - Past Du
LOANS RECEIVABLE, NET - Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 44,376 | $ 3,226 |
Current | 1,281,771 | 922,585 |
Non-accrual loans | 685 | 83 |
Total loans receivable | 1,326,832 | 925,894 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,391 | 1,549 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 3,079 | 659 |
Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 36,906 | 1,018 |
1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 449 | 30 |
Current | 196,257 | 162,185 |
Non-accrual loans | 0 | 83 |
Total loans receivable | 196,706 | 162,298 |
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 370 | 0 |
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 79 | 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 | 0 | 0 |
Current | 584,825 | 422,932 |
Non-accrual loans | 685 | 0 |
Total loans receivable | 585,510 | 422,932 |
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 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 | 0 | 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 | 34,198 | 0 |
Current | 27,602 | 63,612 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 61,800 | 63,612 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 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 | 34,198 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 4,476 | 53 |
Current | 158,528 | 37,041 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 163,004 | 37,094 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,512 | 0 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 558 | 0 |
Consumer [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,406 | 53 |
Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 505 |
Current | 35,759 | 30,766 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 35,759 | 31,271 |
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 | 97 | 0 |
Current | 33,497 | 37,083 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 33,594 | 37,083 |
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 | 97 | 0 |
Premium Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 5,156 | 2,638 |
Current | 245,303 | 168,966 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 250,459 | 171,604 |
Premium Finance [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,509 | 1,398 |
Premium Finance [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,442 | 275 |
Premium Finance [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 1,205 | $ 965 |
LOANS RECEIVABLE, NET - Impaire
LOANS RECEIVABLE, NET - Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | $ 1,181 | $ 517 |
Unpaid principal balance | 1,181 | 517 |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 0 | 78 |
Unpaid principal balance | 0 | 78 |
Specific allowance | 0 | 10 |
Average recorded investment in impaired loans | 1,675 | 4,186 |
1-4 Family Real Estate [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 72 | 84 |
Unpaid principal balance | 72 | 84 |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 78 | |
Unpaid principal balance | 78 | |
Specific allowance | 10 | |
Average recorded investment in impaired loans | 176 | 144 |
Commercial and Multi-Family Real Estate [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 1,109 | 433 |
Unpaid principal balance | 1,109 | 433 |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 883 | 1,117 |
Agricultural Real Estate [Member] | ||
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 146 | 0 |
Commercial Operating [Member] | ||
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 202 | 6 |
Agricultural Operating [Member] | ||
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | $ 268 | $ 2,919 |
LOANS RECEIVABLE, NET - Trouble
LOANS RECEIVABLE, NET - Troubled Debt Restructured Loans (Details) - Contract | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Loans and Leases Receivable Disclosure [Abstract] | ||
Loans modified in TDR | 0 | 0 |
Loans modified in TDR, subsequent default | 0 | 0 |
LOANS RECEIVABLE, NET - Additio
LOANS RECEIVABLE, NET - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchased student loans | $ 134,000 | ||
Commercial real estate loans secured by hotel properties | $ 110,200 | $ 65,400 | |
Commercial real estate loans secured by multi-family properties | 156,400 | 112,600 | |
Non-accruing loans | 685 | 83 | |
Accruing loans delinquent 90 days or more | 36,900 | $ 1,000 | |
Gross interest income | 0 | ||
Iowa and South Dakota [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Purchased student loans | 123,700 | ||
Iowa, North Dakota and South Dakota [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total purchased loans secured by properties | $ 10,700 |
LOAN SERVICING (Details)
LOAN SERVICING (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Transfers and Servicing [Abstract] | |||
Mortgage loan portfolios serviced for Fannie Mae | $ 3,162 | $ 3,980 | $ 5,055 |
Other | 18,649 | 15,452 | 17,156 |
Total | $ 21,811 | $ 19,432 | $ 22,211 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Basic income per common share: | ||||||||||||||||||
Net Income | $ 1,744,000 | $ 9,787,000 | $ 32,142,000 | $ 1,244,000 | $ 6,006,000 | $ 8,873,000 | $ 14,283,000 | $ 4,058,000 | $ 4,639,000 | $ 4,640,000 | $ 5,181,000 | $ 3,595,000 | $ 44,917,000 | $ 33,220,000 | $ 18,055,000 | |||
Weighted average common shares outstanding (in shares) | $ 9,247,092 | $ 8,443,956 | $ 6,730,086 | |||||||||||||||
Basic income per common share (in dollars per share) | $ 0.19 | $ 1.05 | $ 3.44 | $ 0.14 | $ 0.70 | $ 1.04 | $ 1.68 | $ 0.49 | $ 0.64 | $ 0.67 | $ 0.79 | $ 0.58 | $ 4.86 | [1] | $ 3.93 | [1] | $ 2.68 | [1] |
Diluted income per common share: | ||||||||||||||||||
Net income | $ 1,744,000 | $ 9,787,000 | $ 32,142,000 | $ 1,244,000 | $ 6,006,000 | $ 8,873,000 | $ 14,283,000 | $ 4,058,000 | $ 4,639,000 | $ 4,640,000 | $ 5,181,000 | $ 3,595,000 | $ 44,917,000 | $ 33,220,000 | $ 18,055,000 | |||
Weighted average common shares outstanding (in shares) | 9,247,092 | 8,443,956 | 6,730,086 | |||||||||||||||
Outstanding options - based upon the two-class method (in shares) | $ 55,652 | $ 53,390 | $ 61,499 | |||||||||||||||
Weighted average diluted common shares outstanding (in shares) | 9,302,744 | 8,497,346 | 6,791,585 | |||||||||||||||
Diluted (in dollars per share) | $ 0.19 | $ 1.04 | $ 3.42 | $ 0.14 | $ 0.70 | $ 1.04 | $ 1.67 | $ 0.49 | $ 0.63 | $ 0.66 | $ 0.78 | $ 0.58 | $ 4.83 | [1] | $ 3.91 | [1] | $ 2.66 | [1] |
Stock Options [Member] | ||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||
Securities excluded from computing diluted EPS (in shares) | 28,891 | |||||||||||||||||
Accounting Standards Update 2015-06 [Member] | ||||||||||||||||||
Basic income per common share: | ||||||||||||||||||
Basic income per common share (in dollars per share) | 3.93 | |||||||||||||||||
Diluted income per common share: | ||||||||||||||||||
Diluted (in dollars per share) | 3.91 | |||||||||||||||||
Scenario, Previously Reported [Member] | Accounting Standards Update 2015-06 [Member] | ||||||||||||||||||
Basic income per common share: | ||||||||||||||||||
Basic income per common share (in dollars per share) | 3.95 | |||||||||||||||||
Diluted income per common share: | ||||||||||||||||||
Diluted (in dollars per share) | $ 3.92 | |||||||||||||||||
[1] | See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91. |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Available-for-sale debt securities [Abstract] | ||
Mortgage-back securities | $ 586,454 | $ 558,940 |
Available-for-sale equity securities [Abstract] | ||
Fair value | 1,106,977 | 910,309 |
Available-for-sale securities [Abstract] | ||
Amortized cost | 1,680,307 | 1,435,272 |
Gross unrealized gains | 19,884 | 37,257 |
Gross unrealized (losses) | (6,760) | (3,280) |
Total securities | 1,693,431 | 1,469,249 |
Amortized Cost | 1,680,307 | 1,435,272 |
Fair Value | 1,693,431 | 1,469,249 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 518,797 | 151,949 |
OVER 12 MONTHS, Fair Value | 106,140 | 52,770 |
TOTAL, Fair Value | 624,937 | 204,719 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (4,512) | (1,033) |
OVER 12 MONTHS, Unrealized (Losses) | (2,248) | (2,247) |
TOTAL, Unrealized (Losses) | (6,760) | (3,280) |
AMORTIZED COST [Abstract] | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 36,586 | 17,370 |
Due after five years through ten years | 347,831 | 426,034 |
Due after ten years | 705,963 | 436,077 |
Total Amortized Cost | 1,090,380 | 879,481 |
Mortgage-backed securities | 588,918 | 555,036 |
Common equities and mutual funds | 1,009 | 755 |
Amortized cost | 1,680,307 | 1,435,272 |
FAIR VALUE [Abstract] | ||
Due in one year or less | 0 | 0 |
Due after one year through five years | 37,674 | 17,897 |
Due after five years through ten years | 358,198 | 446,771 |
Due after ten years | 709,660 | 444,516 |
Total Fair Value | 1,105,532 | 909,184 |
Mortgage-back securities | 586,454 | 558,940 |
Common equities and mutual funds | 1,445 | 1,125 |
Total securities | 1,693,431 | 1,469,249 |
Held To Maturity | ||
Amortized cost | 563,529 | 619,853 |
Gross unrealized gains | 4,901 | 12,807 |
Gross unrealized (losses) | (4,245) | (86) |
Fair value | 564,185 | 632,574 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 315,838 | 24,264 |
OVER 12 MONTHS, Fair Value | 10,295 | 2,256 |
TOTAL, Fair Value | 326,133 | 26,520 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (4,022) | (55) |
OVER 12 MONTHS, Unrealized (Losses) | (223) | (31) |
TOTAL, Unrealized (Losses) | (4,245) | (86) |
AMORTIZED COST [Abstract] | ||
Due in one year or less | 1,483 | 472 |
Due after one year through five years | 17,926 | 12,502 |
Due after five years through ten years | 144,996 | 157,944 |
Due after ten years | 285,435 | 315,177 |
Total Amortized Cost | 449,840 | 486,095 |
Mortgage-backed securities | 113,689 | 133,758 |
Amortized cost | 563,529 | 619,853 |
FAIR VALUE [Abstract] | ||
Due in one year or less | 1,480 | 471 |
Due after one year through five years | 18,160 | 12,696 |
Due after five years through ten years | 147,832 | 163,806 |
Due after ten years | 284,257 | 321,166 |
Total Fair Value | 451,729 | 498,139 |
Mortgage-backed securities | 112,456 | 134,435 |
Total securities | 564,185 | 632,574 |
Trust Preferred Securities [Member] | ||
Available-for-sale securities [Abstract] | ||
Amortized cost | 14,936 | |
Total securities | 12,978 | |
Amortized Cost | 14,936 | |
Fair Value | 12,978 | |
Unrealized Gain (Loss) | (1,958) | |
AMORTIZED COST [Abstract] | ||
Amortized cost | 14,936 | |
FAIR VALUE [Abstract] | ||
Total securities | 12,978 | |
S&P Credit Rating, BB+ [Member] | Moody's Credit Rating, Baa2 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member] | ||
Available-for-sale securities [Abstract] | ||
Amortized cost | 4,987 | |
Total securities | 4,189 | |
Amortized Cost | 4,987 | |
Fair Value | 4,189 | |
Unrealized Gain (Loss) | (798) | |
AMORTIZED COST [Abstract] | ||
Amortized cost | 4,987 | |
FAIR VALUE [Abstract] | ||
Total securities | 4,189 | |
S&P Credit Rating, BB [Member] | Moody's Credit Rating, Baa2 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member] | ||
Available-for-sale securities [Abstract] | ||
Amortized cost | 4,981 | |
Total securities | 4,077 | |
Amortized Cost | 4,981 | |
Fair Value | 4,077 | |
Unrealized Gain (Loss) | (904) | |
AMORTIZED COST [Abstract] | ||
Amortized cost | 4,981 | |
FAIR VALUE [Abstract] | ||
Total securities | 4,077 | |
Standard & Poor's, BBB- Rating [Member] | Moody's Credit Rating, Baa1 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member] | ||
Available-for-sale securities [Abstract] | ||
Amortized cost | 4,968 | |
Total securities | 4,712 | |
Amortized Cost | 4,968 | |
Fair Value | 4,712 | |
Unrealized Gain (Loss) | (256) | |
AMORTIZED COST [Abstract] | ||
Amortized cost | 4,968 | |
FAIR VALUE [Abstract] | ||
Total securities | 4,712 | |
Trust preferred and corporate securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 14,935 | |
Gross unrealized gains | 0 | |
Gross unrealized (losses) | (1,957) | |
Mortgage-back securities | 12,978 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Fair Value | 12,978 | |
TOTAL, Fair Value | 12,978 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | (1,957) | |
TOTAL, Unrealized (Losses) | (1,957) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 12,978 | |
Small Business Administration Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 57,046 | 78,431 |
Gross unrealized gains | 825 | 2,288 |
Gross unrealized (losses) | 0 | 0 |
Mortgage-back securities | 57,871 | 80,719 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 8,481 | |
OVER 12 MONTHS, Fair Value | 2,688 | |
TOTAL, Fair Value | 11,169 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (58) | |
OVER 12 MONTHS, Unrealized (Losses) | (39) | |
TOTAL, Unrealized (Losses) | (97) | |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 57,871 | 80,719 |
Non-Bank Qualified Obligation of States And Political Subdivisions [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 938,883 | 668,628 |
Gross unrealized gains | 14,983 | 30,141 |
Gross unrealized (losses) | (3,037) | (97) |
Mortgage-back securities | 950,829 | 698,672 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 280,900 | 89,403 |
OVER 12 MONTHS, Fair Value | 5,853 | 0 |
TOTAL, Fair Value | 286,753 | 89,403 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (2,887) | (745) |
OVER 12 MONTHS, Unrealized (Losses) | (150) | 0 |
TOTAL, Unrealized (Losses) | (3,037) | (745) |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 950,829 | 698,672 |
Asset-backed Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 94,451 | 117,487 |
Gross unrealized gains | 2,381 | 73 |
Gross unrealized (losses) | 0 | (745) |
Mortgage-back securities | 96,832 | 116,815 |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 96,832 | 116,815 |
Collateralized Mortgage Backed Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 588,918 | 555,036 |
Gross unrealized gains | 1,259 | 4,382 |
Gross unrealized (losses) | (3,723) | (478) |
Mortgage-back securities | 586,454 | 558,940 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 237,897 | 54,065 |
OVER 12 MONTHS, Fair Value | 100,287 | 36,979 |
TOTAL, Fair Value | 338,184 | 91,044 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (1,625) | (230) |
OVER 12 MONTHS, Unrealized (Losses) | (2,098) | (248) |
TOTAL, Unrealized (Losses) | (3,723) | (478) |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 586,454 | 558,940 |
Debt Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 1,679,298 | 1,434,517 |
Gross unrealized gains | 19,448 | 36,884 |
Gross unrealized (losses) | (6,760) | (3,277) |
Mortgage-back securities | 1,691,986 | 1,468,124 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 518,797 | 151,949 |
OVER 12 MONTHS, Fair Value | 106,140 | 52,645 |
TOTAL, Fair Value | 624,937 | 204,594 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (4,512) | (1,033) |
OVER 12 MONTHS, Unrealized (Losses) | (2,248) | (2,244) |
TOTAL, Unrealized (Losses) | (6,760) | (3,277) |
FAIR VALUE [Abstract] | ||
Mortgage-back securities | 1,691,986 | 1,468,124 |
Common Equities And Mutual Funds [Member] | ||
Available-for-sale equity securities [Abstract] | ||
Amortized cost | 1,009 | 755 |
Gross unrealized gains | 436 | 373 |
Gross unrealized (losses) | 0 | (3) |
Fair value | 1,445 | 1,125 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Fair Value | 125 | |
TOTAL, Fair Value | 125 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | (3) | |
TOTAL, Unrealized (Losses) | (3) | |
US States and Political Subdivisions Debt Securities [Member] | ||
Held To Maturity | ||
Amortized cost | 19,247 | 20,626 |
Gross unrealized gains | 157 | 355 |
Gross unrealized (losses) | (36) | (44) |
Fair value | 19,368 | 20,937 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,364 | 2,909 |
OVER 12 MONTHS, Fair Value | 4,089 | 2,256 |
TOTAL, Fair Value | 5,453 | 5,165 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (6) | (13) |
OVER 12 MONTHS, Unrealized (Losses) | (30) | (31) |
TOTAL, Unrealized (Losses) | (36) | (44) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 19,247 | 20,626 |
FAIR VALUE [Abstract] | ||
Total securities | 19,368 | 20,937 |
Non-Bank Qualified Obligation of States And Political Subdivisions [Member] | ||
Held To Maturity | ||
Amortized cost | 430,593 | 465,469 |
Gross unrealized gains | 4,744 | 11,744 |
Gross unrealized (losses) | (2,976) | (11) |
Fair value | 432,361 | 477,202 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 202,018 | 1,294 |
OVER 12 MONTHS, Fair Value | 6,206 | 0 |
TOTAL, Fair Value | 208,224 | 1,294 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (2,783) | (11) |
OVER 12 MONTHS, Unrealized (Losses) | (193) | 0 |
TOTAL, Unrealized (Losses) | (2,976) | (11) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 430,593 | 465,469 |
FAIR VALUE [Abstract] | ||
Total securities | 432,361 | 477,202 |
Collateralized Mortgage Backed Securities [Member] | ||
Held To Maturity | ||
Amortized cost | 113,689 | 133,758 |
Gross unrealized gains | 0 | 708 |
Gross unrealized (losses) | (1,233) | (31) |
Fair value | 112,456 | 134,435 |
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 112,456 | 20,061 |
OVER 12 MONTHS, Fair Value | 0 | 0 |
TOTAL, Fair Value | 112,456 | 20,061 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (1,233) | (31) |
OVER 12 MONTHS, Unrealized (Losses) | 0 | 0 |
TOTAL, Unrealized (Losses) | (1,233) | (31) |
AMORTIZED COST [Abstract] | ||
Amortized cost | 113,689 | 133,758 |
FAIR VALUE [Abstract] | ||
Total securities | $ 112,456 | $ 134,435 |
SECURITIES - ACTIVITIES RELATED
SECURITIES - ACTIVITIES RELATED TO SALE (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Available For Sale | |||
Proceeds from sales | $ 457,306 | $ 285,508 | $ 566,371 |
Gross gains on sales | 4,091 | 1,459 | 2,753 |
Gross losses on sales | 4,628 | 1,785 | 4,387 |
Net (loss) on available for sale securities | (537) | (326) | (1,634) |
Held To Maturity | |||
Net carrying amount of securities sold | 5,826 | 0 | 0 |
Gross realized gain on sales | 92 | 0 | 0 |
Gross realized losses on sales | 48 | 0 | 0 |
Net gain on held to maturity securities | $ 44 | $ 0 | $ 0 |
PREMISES, FURNITURE, AND EQUI63
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | $ 61,413 | $ 56,075 | |
Less: accumulated depreciation and amortization | (42,093) | (37,449) | |
Net book value | 19,320 | 18,626 | |
Depreciation expense of premises, furniture, and equipment | 5,500 | 5,400 | $ 4,600 |
Amortization expense on capitalized leases | 100 | 200 | $ 200 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 1,578 | 1,578 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 10,642 | 10,482 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 46,934 | 41,756 | |
Capitalized Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | $ 2,259 | $ 2,259 |
TIME CERTIFICATES OF DEPOSITS64
TIME CERTIFICATES OF DEPOSITS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
IRA deposit accounts permanently insured by DIF under management of FDIC | $ 250,000 | |
Time certificates of deposits in denominations of $250,000 or more | 85,200,000 | $ 44,500,000 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,018 | 560,825,000 | |
2,019 | 10,943,000 | |
2,020 | 5,158,000 | |
2,021 | 2,412,000 | |
2,022 | 2,227,000 | |
Thereafter | 0 | |
Total Certificates | 581,565,000 | |
Wholesale deposits | 476,173,000 | $ 0 |
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC | 250,000 | |
Wholesale Deposits [Member] | ||
Time Deposits, Fiscal Year Maturity [Abstract] | ||
Wholesale deposits | $ 457,900,000 |
SHORT TERM AND LONG TERM DEBT S
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Short Term Debt (Details) | 12 Months Ended | |
Sep. 30, 2017USD ($)Lease | Sep. 30, 2016USD ($) | |
Short-term Debt [Line Items] | ||
Short-term debt | $ 1,404,534,000 | $ 1,095,118,000 |
Fixed rate of FHLB advances | 1.27% | |
Pledged securities against specific FHLB advances, fair value | $ 1,070,000,000 | 824,500,000 |
Qualified mortgage loans pledged as collateral | $ 628,000,000 | 501,000,000 |
Number of capital leases | Lease | 3 | |
Number of equipment leases | Lease | 2 | |
Number of property leases | Lease | 1 | |
Leases, current | $ 79,507 | |
Securities sold under agreements to repurchase, total | 2,500,000 | 3,000,000 |
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract] | ||
Highest month-end balance | 3,782,000 | 3,468,000 |
Average balance | $ 2,225,000 | $ 2,179,000 |
Weighted average interest rate for the year | 0.98% | 0.60% |
Weighted average interest rate at year end | 1.59% | 0.61% |
Securities pledged as collateral for securities sold under agreement to repurchase, fair value | $ 9,300,000 | $ 9,200,000 |
Overnight federal funds purchased [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 987,000,000 | 992,000,000 |
Short-term FHLB advances [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 415,000,000 | 100,000,000 |
Short-term capital lease [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | 62,000 | 79,000 |
Repurchase agreements [Member] | ||
Short-term Debt [Line Items] | ||
Short-term debt | $ 2,472,000 | $ 3,039,000 |
SHORT TERM AND LONG TERM DEBT66
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Long Term Debt (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 |
Debt Disclosure [Abstract] | ||
Long-term FHLB advances | $ 0 | $ 7,000 |
Trust preferred securities | 10,310 | 10,310 |
Trust preferred securities, Total | 10,310 | |
Subordinated debentures (net of issuance costs) | 73,347 | 73,211 |
Long-term capital lease | 1,876 | 1,939 |
Long-term capital lease | ||
2,018 | 0 | |
2,019 | 65 | |
2,020 | 72 | |
2,021 | 77 | |
2,022 | 82 | |
Thereafter | 1,580 | |
Total Long-term capital lease | 1,876 | 1,939 |
Maturities of Long-term Debt | ||
Total 2,018 | 0 | |
Total 2,019 | 65 | |
Total 2,020 | 72 | |
Total 2,021 | 77 | |
Total 2,022 | 82 | |
Total Thereafter | 85,237 | |
Total Long-term Debt | $ 85,533 | $ 92,460 |
SHORT TERM AND LONG TERM DEBT67
SHORT TERM AND LONG TERM DEBT SHORT TERM AND LONG TERM DEBT - Long Term Debt Narrative (Details) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017USD ($)LeasePeriod$ / sharesshares | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Debt Instrument [Line Items] | |||
Advances from FHLB | $ 0 | $ 7,000 | |
Weighted average rate of FHLB advances | 1.27% | ||
Proceeds from long term debt | $ 0 | 75,000 | $ 0 |
Proceeds from debt, net of issuance costs | 73,347 | 73,211 | |
Accrued interest payable | $ 2,280 | $ 875 | |
Number of capital leases | Lease | 3 | ||
Number of equipment leases | Lease | 2 | ||
Number of property leases | Lease | 1 | ||
Leases expense in next twelve months | $ 1,900 | ||
First Midwest Financial Capital Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Equity method investment, ownership percentage | 100.00% | ||
Issuance of trust preferred securities (in shares) | shares | 10,000 | ||
Number of authorized shares of trust preferred securities issued (in shares) | shares | 10,310 | ||
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period | 10 | ||
Redemption price per capital security (in dollars per share) | $ / shares | $ 1,000 | ||
First Midwest Financial Capital Trust I [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Basis spread on variable rate | 3.75% | ||
Effective interest rate | 5.22% | 4.99% | |
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 [Member] | Subordinated Debt [Member] | |||
Debt Instrument [Line Items] | |||
Proceeds from long term debt | $ 75,000 | ||
Interest rate, stated percentage | 5.75% | ||
Net proceeds from issuance of debt, before issuance costs | $ 73,900 | ||
Proceeds from debt, net of issuance costs | 73,300 | ||
Debt issuance costs | 1,700 | ||
Accrued interest payable | $ 4,300 | ||
Weighted Average [Member] | |||
Debt Instrument [Line Items] | |||
Weighted average rate of FHLB advances | 6.98% | ||
Weighted Average [Member] | First Midwest Financial Capital Trust I [Member] | LIBOR [Member] | |||
Debt Instrument [Line Items] | |||
Effective interest rate | 12.50% |
EMPLOYEE STOCK OWNERSHIP AND 68
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |||
Number of hours of employment required for ESOP | 1000 hours | ||
Years of employment to be eligible for ESOP | 1 year | ||
Eligible age for ESOP | 21 years | ||
Employee Stock Ownership Plan (ESOP), Expense | $ 1,668,000 | $ 1,150,000 | $ 994,000 |
Contribution to ESOP | $ 1,606,102 | $ 1,174,682 | $ 992,038 |
Percentage of benefits vested after credited service | 100.00% | ||
ESOP award vesting period | 7 years | ||
Years of credited service | 7 years | ||
Number of shares (ESOP) released (in shares) | 20,486 | 19,381 | 23,750 |
Fair value of shares (ESOP) released (in dollars per share) | $ 78.40 | $ 60.61 | $ 41.77 |
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares) | 14,126 | 15,502 | 10,294 |
Shares purchased for dividend reinvestment (in shares) | 1,479 | 2,710 | 2,974 |
Year-end ESOP shares [Abstract] | |||
Allocated shares (in shares) | 256,219 | 262,872 | 256,283 |
Unearned shares (in shares) | 0 | 0 | 0 |
Total ESOP shares (in shares) | 256,219 | 262,872 | 256,283 |
Fair value of unearned shares | $ 0 | $ 0 | $ 0 |
Contribution expense to profit sharing plan included in compensation and benefits | $ 1,610,000 | $ 1,260,000 | $ 1,100,000 |
SHARE BASED COMPENSATION PLAN69
SHARE BASED COMPENSATION PLANS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Effect to income of share-based compensation expense, net of tax benefits [Abstract] | |||
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively | $ 6,486 | $ 559 | $ 334 |
Tax effects of employee's stock-based compensation expense recognized income | 3,907 | $ 192 | $ 66 |
Stock based compensation expense not yet recognized in income | $ 16,900 | ||
Weighted average remaining period for unrecognized stock based compensation | 4 years 30 days | ||
Period that options are issued | 10 years | ||
Percentage of options vesting at either grant date or over four year period | 100.00% | ||
Period that options vest | 4 years | ||
Granted (in shares) | 0 | 0 | 0 |
Fair value of share granted (in shares) | 316,604 | 8,154 | |
Award vesting | P8Y | ||
Director [Member] | |||
Effect to income of share-based compensation expense, net of tax benefits [Abstract] | |||
Fair value of share granted (in shares) | 500,000 | 200,000 | 100,000 |
SHARE BASED COMPENSATION PLAN70
SHARE BASED COMPENSATION PLANS - Summary of Stock Options (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Number of Shares [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 125,560 | 189,088 | |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (29,386) | (63,528) | |
Forfeited or expired (in shares) | (20,417) | 0 | |
Options outstanding, end of period (in shares) | 75,757 | 125,560 | 189,088 |
Options exercisable end of year (in shares) | 75,757 | 125,560 | |
Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning of period (in dollars per share) | $ 25.73 | $ 25.74 | |
Granted (in dollars per share) | 0 | 0 | |
Exercised (in dollars per share) | 33.38 | 25.77 | |
Forfeited or expired (in dollars per share) | 26.25 | 0 | |
Options outstanding, end of period (in dollars per share) | 22.62 | 25.73 | $ 25.74 |
Options exercisable end of year (in dollars per share) | $ 22.62 | $ 25.73 | |
Weighted Average Remaining Contractual Term (Yrs) [Abstract] | |||
Options outstanding , weighted average remaining contractual term (Yrs) | 2 years 3 months 10 days | 2 years 8 months 5 days | 3 years 1 month 28 days |
Options exercisable end of year, weighted average remaining contractual term (Yrs) | 2 years 3 months 10 days | 2 years 8 months 5 days | |
Aggregate Intrinsic Value [Abstract] | |||
Options outstanding, beginning of period | $ 4,379 | $ 3,027 | |
Granted | 0 | 0 | |
Exercised | 1,790 | 1,510 | $ 900 |
Forfeited or expired | 1,464 | 0 | |
Options outstanding, end of period | $ 4,225 | 4,379 | $ 3,027 |
Options exercisable end of year | $ 4,379 |
SHARE BASED COMPENSATION PLAN71
SHARE BASED COMPENSATION PLANS - Nonvested Shares (Details) - $ / shares | 12 Months Ended | |
Sep. 30, 2017 | Sep. 30, 2016 | |
Number of Shares | ||
Nonvested shares outstanding, beginning of period (in shares) | 20,656 | 44,002 |
Granted (in shares) | 316,604 | 8,154 |
Vested (in shares) | (29,135) | (33,666) |
Forfeited or expired (in shares) | (3,599) | (2,166) |
Nonvested shares outstanding, end of period (in shares) | 304,526 | 20,656 |
Weighted Average Fair Value At Grant | ||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ 41.37 | $ 40.80 |
Granted (in dollars per share) | 87.49 | 42.49 |
Vested (in dollars per share) | 64.22 | 40.93 |
Forfeited or expired (in dollars per share) | 56.39 | 46.98 |
Nonvested shares outstanding, end of period (in dollars per share) | $ 86.96 | $ 41.37 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | |
Federal: | |||
Current | $ 12,153 | $ 4,410 | $ 4,217 |
Deferred | (5,040) | (440) | (3,896) |
Federal income tax expense | 7,113 | 3,970 | 321 |
State: | |||
Current | 4,366 | 1,422 | 1,048 |
Deferred | (1,246) | 210 | (1) |
State tax expense | 3,120 | 1,632 | 1,047 |
Income tax expense | 10,233 | 5,602 | 1,368 |
Income tax expense (benefit) to statutory federal income tax rate reconciliation [Abstract] | |||
Income tax expense at federal tax rate | 19,303 | 13,588 | 6,798 |
Increase (decrease) resulting from: | |||
State income taxes net of federal benefit | 2,014 | 933 | 692 |
Nontaxable buildup in cash surrender value | (776) | (580) | (711) |
Stock based compensation | (593) | (66) | (37) |
Tax exempt income | (9,991) | (8,257) | (5,230) |
Nondeductible expenses | 316 | 196 | 188 |
Other, net | (40) | (212) | (332) |
Income tax expense | 10,233 | 5,602 | 1,368 |
Deferred tax assets: | |||
Bad debts | 2,832 | 2,044 | |
Deferred compensation | 1,548 | 1,345 | |
Stock based compensation | 3,436 | 265 | |
Operational reserve | 645 | 540 | |
AMT Credit | 1,869 | 5,563 | |
Intangibles | 5,235 | 393 | |
Indirect tax benefits of unrecognized tax positions | 266 | 216 | |
Other assets | 1,933 | 1,362 | |
Gross deferred tax assets | 17,764 | 11,728 | |
Deferred tax liabilities: | |||
FHLB stock dividend | (425) | (411) | |
Premises and equipment | (1,789) | (1,913) | |
Patents | (842) | (988) | |
Prepaid expenses | (673) | (668) | |
Net unrealized gains on securities available for sale | (4,934) | (12,348) | |
Gross deferred tax liabilities | (8,663) | (16,328) | |
Net deferred tax assets | 9,101 | ||
Net deferred tax liabilities | (4,600) | ||
Gross deferred tax on state net operating loss carryforwards | 1,300 | 900 | |
Additional bad debt deductions provided by federal income tax laws | 6,700 | ||
Deferred tax liability, bad debt deductions | 2,300 | 2,300 | |
Reconciliation for liabilities [Abstract] | |||
Balance at beginning of year | 525 | 974 | |
Additions for tax positions related to the current year | 192 | 63 | |
Additions for tax positions related to the prior years | 31 | 0 | |
Reductions for tax positions due to settlement with taxing authorities | 0 | (372) | |
Reductions for tax positions related to prior years | (103) | (140) | |
Balance at end of year | 645 | $ 525 | $ 974 |
Unrecognized tax benefits that, if recognized, would impact the effective rate | 460 | ||
Accrued interest related to unrecognized tax benefits | 114 | ||
Deferred Tax Expense, Event of Liquidation | $ 2,300 |
CAPITAL REQUIREMENTS AND REST73
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details) | Sep. 30, 2017 | Sep. 30, 2016 |
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 (core) capital (to adjusted total assets), ratio | 7.64% | 17.28% |
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, ratio | 4.00% | 4.50% |
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 6.50% |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 13.97% | |
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 4.50% | |
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 6.50% | |
Tangible capital (to tangible assets), actual ratio | 8.35% | |
Tangible capital (to tangible assets), minimum requirement for capital adequacy purposes, ratio | 4.00% | |
Tangible capital (to tangible assets), minimum requirement to be well capitalized under prompt corrective actions provisions, ratio | 5.00% | |
Tier 1 (core) capital ( to risk weighted assets), ratio | 14.46% | 17.82% |
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 6.00% | 6.00% |
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 8.00% |
Total qualifying capital (to risk-weighted assets), ratio | 18.41% | |
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 8.00% | |
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 10.00% | |
Total risk based capital (to risk weighted assets), ratio | 23.17% | |
Total risk based capital (to risk weighted assets), minimum requirement for capital adequacy purposes, ratio | 8.00% | |
Total risk based capital (to risk weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 10.00% | |
MetaBank [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Tier 1 (core) capital (to adjusted total assets), ratio | 9.64% | 21.95% |
Common equity Tier 1 (to risk-weighted assets), actual ratio | 18.22% | |
Tangible capital (to tangible assets), actual ratio | 10.35% | |
Tier 1 (core) capital ( to risk weighted assets), ratio | 18.22% | 21.95% |
Total qualifying capital (to risk-weighted assets), ratio | 18.59% | |
Total risk based capital (to risk weighted assets), ratio | 22.35% |
CAPITAL REQUIREMENTS AND REST74
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 |
Reconciliation of capital amounts [Abstract] | ||||
Total equity | $ 434,496 | $ 334,975 | $ 271,335 | $ 174,802 |
Adjustments: | ||||
LESS: Goodwill, net of associated deferred tax liabilities | 95,332 | |||
LESS: Certain other intangible assets | 41,743 | |||
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards | 1,495 | |||
LESS: Net unrealized gains (losses) on available-for-sale securities | 9,166 | |||
Common Equity Tier 1 | 286,760 | |||
Long-term debt and other instruments qualifying as Tier 1 | 10,310 | |||
LESS: Additional tier 1 capital deductions | 374 | |||
Total Tier 1 capital | 296,696 | |||
Allowance for loan losses | 7,718 | |||
Subordinated debentures (net of issuance costs) | 73,347 | |||
Total qualifying capital | $ 377,761 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) - USD ($) | 3 Months Ended | |||
Dec. 31, 2014 | Sep. 30, 2017 | Oct. 14, 2016 | Sep. 30, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | ||||
Unfunded loan commitments | $ 233,200,000 | $ 182,900,000 | ||
Commitment to purchase securities | 0 | 0 | ||
Securities pledged as collateral for public funds on deposit | 5,700,000 | 5,800,000 | ||
Securities pledged as collateral for individual, trust, and estate deposits | $ 3,800,000 | $ 3,400,000 | ||
Inter National Bank [Member] | ||||
Loss Contingencies [Line Items] | ||||
Amount of shortfall in depository account | $ 10,500,000 | |||
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 4,001,025.45 |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) | 12 Months Ended |
Sep. 30, 2017USD ($)Lease_renewals | |
Leases [Abstract] | |
Expiration period of various noncancelable operating lease agreements | Dec. 31, 2036 |
Annual rent, minimum | $ 12,000 |
Annual rent, maximum | $ 789,000 |
Expiration period of capital lease agreements | Dec. 31, 2035 |
Operating lease term | 20 years |
Operating lease, number of additional renewals | Lease_renewals | 4 |
Operating lease, renewal term | 5 years |
Total minimum rental commitments for operating leases [Abstract] | |
2,018 | $ 2,486,000 |
2,019 | 2,287,000 |
2,020 | 2,289,000 |
2,021 | 2,143,000 |
2,022 | 1,882,000 |
Thereafter | 17,922,000 |
Total Operating Lease Commitments | 29,009,000 |
Total minimum rental commitments for capital leases [Abstract] | |
2,018 | 179,000 |
2,019 | 179,000 |
2,020 | 182,000 |
2,021 | 182,000 |
2,022 | 182,000 |
Thereafter | 2,240,000 |
Total Capital Lease Commitments | 3,144,000 |
Amounts representing interest | 1,206,000 |
Present value of net minimum lease payments | $ 1,938,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2017USD ($) | Jun. 30, 2017USD ($) | Mar. 31, 2017USD ($) | Dec. 31, 2016USD ($) | Sep. 30, 2016USD ($) | Jun. 30, 2016USD ($) | Mar. 31, 2016USD ($) | Dec. 31, 2015USD ($) | Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2017USD ($)segment | Sep. 30, 2016USD ($) | Sep. 30, 2015USD ($) | |
Segment Reporting [Abstract] | |||||||||||||||
Number of reportable segments | segment | 3 | ||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | $ 108,103 | $ 81,396 | $ 61,607 | ||||||||||||
Interest expense | $ 4,461 | $ 3,918 | $ 3,752 | $ 2,742 | $ 1,836 | $ 844 | $ 691 | $ 720 | $ 660 | $ 593 | $ 473 | $ 661 | 14,873 | 4,091 | 2,387 |
Net interest income (expense) | 93,230 | 77,305 | 59,220 | ||||||||||||
Provision for loan losses | (144) | $ 1,240 | $ 8,649 | $ 843 | 548 | $ 2,098 | $ 1,173 | $ 786 | 124 | $ 700 | $ 593 | $ 48 | 10,589 | 4,605 | 1,465 |
Non-interest income | 172,172 | 100,770 | 58,174 | ||||||||||||
Non-interest expense | 199,663 | 134,648 | 96,506 | ||||||||||||
Income (loss) before income tax expense (benefit) | 55,150 | 38,822 | 19,423 | ||||||||||||
Total assets | 5,228,332 | 4,006,419 | 2,529,705 | 5,228,332 | 4,006,419 | 2,529,705 | |||||||||
Goodwill | 98,723 | 36,928 | 36,928 | 98,723 | 36,928 | 36,928 | |||||||||
Total deposits | 3,223,424 | 2,430,082 | 1,657,534 | 3,223,424 | 2,430,082 | 1,657,534 | |||||||||
Payments | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 13,845 | 9,711 | 7,261 | ||||||||||||
Interest expense | 503 | 181 | 169 | ||||||||||||
Net interest income (expense) | 13,342 | 9,530 | 7,092 | ||||||||||||
Provision for loan losses | 7,613 | 971 | 0 | ||||||||||||
Non-interest income | 165,707 | 95,261 | 54,417 | ||||||||||||
Non-interest expense | 132,984 | 77,411 | 47,731 | ||||||||||||
Income (loss) before income tax expense (benefit) | 38,452 | 26,409 | 13,778 | ||||||||||||
Total assets | 185,521 | 87,311 | 93,336 | 185,521 | 87,311 | 93,336 | |||||||||
Goodwill | 87,145 | 25,350 | 25,350 | 87,145 | 25,350 | 25,350 | |||||||||
Total deposits | 2,436,893 | 2,131,042 | 1,424,304 | 2,436,893 | 2,131,042 | 1,424,304 | |||||||||
Banking | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 52,231 | 38,321 | 31,394 | ||||||||||||
Interest expense | 2,723 | 1,331 | 1,377 | ||||||||||||
Net interest income (expense) | 49,508 | 36,990 | 30,017 | ||||||||||||
Provision for loan losses | 2,976 | 3,634 | 689 | ||||||||||||
Non-interest income | 4,685 | 4,280 | 3,358 | ||||||||||||
Non-interest expense | 24,520 | 23,001 | 19,028 | ||||||||||||
Income (loss) before income tax expense (benefit) | 26,697 | 14,635 | 13,658 | ||||||||||||
Total assets | 1,343,968 | 946,420 | 724,834 | 1,343,968 | 946,420 | 724,834 | |||||||||
Goodwill | 11,578 | 11,578 | 11,578 | 11,578 | 11,578 | 11,578 | |||||||||
Total deposits | 229,969 | 299,030 | 233,235 | 229,969 | 299,030 | 233,235 | |||||||||
Corporate Services/Other | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 42,027 | 33,364 | 22,952 | ||||||||||||
Interest expense | 11,647 | 2,579 | 841 | ||||||||||||
Net interest income (expense) | 30,380 | 30,785 | 22,111 | ||||||||||||
Provision for loan losses | 0 | 0 | 776 | ||||||||||||
Non-interest income | 1,780 | 1,229 | 399 | ||||||||||||
Non-interest expense | 42,159 | 34,236 | 29,747 | ||||||||||||
Income (loss) before income tax expense (benefit) | (9,999) | (2,222) | (8,013) | ||||||||||||
Total assets | 3,698,843 | 2,972,688 | 1,711,535 | 3,698,843 | 2,972,688 | 1,711,535 | |||||||||
Goodwill | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||
Total deposits | $ 556,562 | $ 10 | $ (5) | $ 556,562 | $ 10 | $ (5) |
PARENT COMPANY FINANCIAL STAT78
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2014 | |
ASSETS [Abstract] | |||||||||||||||||||
Cash and cash equivalents | $ 1,267,586 | $ 773,830 | $ 773,830 | $ 27,658 | $ 27,658 | $ 29,832 | $ 773,830 | $ 27,658 | $ 29,832 | $ 1,267,586 | $ 773,830 | $ 27,658 | $ 29,832 | ||||||
Other assets | 12,738 | 7,826 | |||||||||||||||||
Total assets | 5,228,332 | 4,006,419 | 2,529,705 | ||||||||||||||||
LIABILITIES [Abstract] | |||||||||||||||||||
Subordinated debentures | 85,533 | 92,460 | |||||||||||||||||
Accrued expenses and other liabilities | 78,065 | 48,309 | |||||||||||||||||
Total liabilities | 4,793,836 | 3,671,444 | |||||||||||||||||
STOCKOLDERS' EQUITY [Abstract] | |||||||||||||||||||
Common stock | 96 | 85 | |||||||||||||||||
Additional paid-in capital | 258,336 | 184,780 | |||||||||||||||||
Retained earnings | 167,164 | 127,190 | |||||||||||||||||
Accumulated other comprehensive income (loss) | 9,166 | 22,920 | |||||||||||||||||
Treasury stock, at cost | (266) | 0 | |||||||||||||||||
Total stockholders’ equity | 434,496 | 334,975 | 271,335 | 174,802 | |||||||||||||||
Total liabilities and stockholders’ equity | 5,228,332 | 4,006,419 | |||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | |||||||||||||||||||
Interest expense | 4,461 | $ 3,918 | $ 3,752 | 2,742 | 1,836 | $ 844 | $ 691 | 720 | 660 | $ 593 | $ 473 | 661 | 14,873 | 4,091 | 2,387 | ||||
Other expense | 199,663 | 134,648 | 96,506 | ||||||||||||||||
Income tax expense | 10,233 | 5,602 | 1,368 | ||||||||||||||||
Net Income | 1,744 | 9,787 | 32,142 | 1,244 | 6,006 | 8,873 | 14,283 | 4,058 | 4,639 | 4,640 | 5,181 | 3,595 | 44,917 | 33,220 | 18,055 | ||||
Cash flows from operating activities: | |||||||||||||||||||
Net Income | 1,744 | $ 9,787 | $ 32,142 | 1,244 | 6,006 | $ 8,873 | $ 14,283 | 4,058 | 4,639 | $ 4,640 | $ 5,181 | 3,595 | 44,917 | 33,220 | 18,055 | ||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract] | |||||||||||||||||||
Depreciation, amortization and accretion, net | 45,048 | 35,617 | 28,882 | ||||||||||||||||
Stock compensation | 10,401 | 487 | 258 | ||||||||||||||||
Net change in other assets | (23,408) | (1,968) | (672) | ||||||||||||||||
Change in other liabilities | 30,806 | 11,237 | 6,911 | ||||||||||||||||
Net cash provided by operating activities | 119,998 | 78,498 | 49,214 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Net cash used in investing activities | (700,433) | (738,480) | (453,915) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Cash dividends paid | (4,839) | (4,389) | (3,493) | ||||||||||||||||
Proceeds from contingent consideration - equity | (17,253) | 0 | 0 | ||||||||||||||||
Proceeds from exercise of stock options & issuance of common stock | 650 | 13,857 | 51,547 | ||||||||||||||||
Issuance of common shares due to acquisition | (37,296) | 0 | (24,303) | ||||||||||||||||
Issuance of restricted stock | 4 | 0 | 0 | ||||||||||||||||
Proceeds from long term debt | 0 | 75,000 | 0 | ||||||||||||||||
Payment of debt issuance costs | 0 | (1,767) | 0 | ||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | (470) | 0 | 0 | ||||||||||||||||
Net cash provided by financing activities | 1,074,191 | 1,406,154 | 402,527 | ||||||||||||||||
Net change in cash and cash equivalents | 493,756 | 746,172 | (2,174) | ||||||||||||||||
CASH AND CASH EQUIVALENTS [Abstract] | |||||||||||||||||||
Cash and cash equivalents at beginning of year | 773,830 | 27,658 | 29,832 | 773,830 | 27,658 | 29,832 | |||||||||||||
Cash and cash equivalents at end of year | 1,267,586 | 773,830 | 27,658 | 1,267,586 | 773,830 | 27,658 | |||||||||||||
Meta Financial [Member] | |||||||||||||||||||
ASSETS [Abstract] | |||||||||||||||||||
Cash and cash equivalents | 14,569 | 15,716 | 15,716 | 14,280 | 14,280 | 9,439 | 15,716 | 14,280 | 9,439 | 14,569 | 15,716 | $ 14,280 | $ 9,439 | ||||||
Investment in subsidiaries | 521,021 | 403,574 | |||||||||||||||||
Other assets | 406 | 413 | |||||||||||||||||
Total assets | 535,996 | 419,703 | |||||||||||||||||
LIABILITIES [Abstract] | |||||||||||||||||||
Subordinated debentures | 83,657 | 83,521 | |||||||||||||||||
Accrued expenses and other liabilities | 17,843 | 1,207 | |||||||||||||||||
Total liabilities | 101,500 | 84,728 | |||||||||||||||||
STOCKOLDERS' EQUITY [Abstract] | |||||||||||||||||||
Common stock | 96 | 85 | |||||||||||||||||
Additional paid-in capital | 258,336 | 184,780 | |||||||||||||||||
Retained earnings | 167,164 | 127,190 | |||||||||||||||||
Accumulated other comprehensive income (loss) | 9,166 | 22,920 | |||||||||||||||||
Treasury stock, at cost | (266) | 0 | |||||||||||||||||
Total stockholders’ equity | 434,496 | 334,975 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ 535,996 | $ 419,703 | |||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | |||||||||||||||||||
Interest expense | 4,959 | 1,022 | 418 | ||||||||||||||||
Other expense | 440 | 382 | 269 | ||||||||||||||||
Total expense | 5,399 | 1,404 | 687 | ||||||||||||||||
Gain (Loss) before income taxes and equity in undistributed net income of subsidiaries | (5,399) | (1,404) | (687) | ||||||||||||||||
Income tax expense | (1,935) | (519) | (324) | ||||||||||||||||
Gain (Loss) before equity in undistributed net income of subsidiaries | (3,464) | (885) | (363) | ||||||||||||||||
Equity in undistributed net income of subsidiaries | 48,381 | 34,105 | 18,418 | ||||||||||||||||
Net Income | 44,917 | 33,220 | 18,055 | ||||||||||||||||
Cash flows from operating activities: | |||||||||||||||||||
Net Income | 44,917 | 33,220 | 18,055 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract] | |||||||||||||||||||
Depreciation, amortization and accretion, net | 136 | (22) | 0 | ||||||||||||||||
Equity in undistributed net income of subsidiaries | (48,381) | (34,105) | (18,418) | ||||||||||||||||
Stock compensation | 10,401 | 427 | 253 | ||||||||||||||||
Net change in other assets | 7 | (5) | (15) | ||||||||||||||||
Change in other liabilities | 16,636 | 541 | 378 | ||||||||||||||||
Net cash provided by operating activities | 23,716 | 56 | 253 | ||||||||||||||||
Cash flows from investing activities: | |||||||||||||||||||
Capital contributions to subsidiaries | (82,820) | (81,000) | (67,600) | ||||||||||||||||
Net cash used in investing activities | (82,820) | (81,000) | (67,600) | ||||||||||||||||
Cash flows from financing activities: | |||||||||||||||||||
Cash dividends paid | (4,839) | (4,389) | (3,493) | ||||||||||||||||
Purchase of shares by ESOP | 1,174 | 0 | 0 | ||||||||||||||||
Proceeds from contingent consideration - equity | 24,142 | 0 | 0 | ||||||||||||||||
Proceeds from exercise of stock options & issuance of common stock | 650 | 13,536 | 75,681 | ||||||||||||||||
Issuance of common shares due to acquisition | 37,296 | 0 | 0 | ||||||||||||||||
Issuance of restricted stock | 4 | 0 | 0 | ||||||||||||||||
Proceeds from long term debt | 0 | 75,000 | 0 | ||||||||||||||||
Payment of debt issuance costs | 0 | (1,767) | 0 | ||||||||||||||||
Shares repurchased for tax withholdings on stock compensation | (470) | 0 | 0 | ||||||||||||||||
Other, net | 0 | 0 | 0 | ||||||||||||||||
Net cash provided by financing activities | 57,957 | 82,380 | 72,188 | ||||||||||||||||
Net change in cash and cash equivalents | (1,147) | 1,436 | 4,841 | ||||||||||||||||
CASH AND CASH EQUIVALENTS [Abstract] | |||||||||||||||||||
Cash and cash equivalents at beginning of year | $ 15,716 | $ 14,280 | $ 9,439 | 15,716 | 14,280 | 9,439 | |||||||||||||
Cash and cash equivalents at end of year | $ 14,569 | $ 15,716 | $ 14,280 | $ 14,569 | $ 15,716 | $ 14,280 |
SELECTED QUARTERLY FINANCIAL 79
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||
Sep. 30, 2017 | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | ||||
Quarterly Financial Information Disclosure [Abstract] | ||||||||||||||||||
Interest income | $ 28,949 | $ 28,861 | $ 27,718 | $ 22,575 | $ 21,729 | $ 20,763 | $ 20,629 | $ 18,275 | $ 16,363 | $ 15,254 | $ 15,758 | $ 14,232 | ||||||
Interest expense | 4,461 | 3,918 | 3,752 | 2,742 | 1,836 | 844 | 691 | 720 | 660 | 593 | 473 | 661 | $ 14,873 | $ 4,091 | $ 2,387 | |||
Net interest income | 24,488 | 24,943 | 23,966 | 19,833 | 19,893 | 19,919 | 19,938 | 17,555 | 15,703 | 14,661 | 15,285 | 13,571 | 93,230 | 77,305 | 59,220 | |||
Provision for loan losses | (144) | 1,240 | 8,649 | 843 | 548 | 2,098 | 1,173 | 786 | 124 | 700 | 593 | 48 | 10,589 | 4,605 | 1,465 | |||
Net Income | $ 1,744 | $ 9,787 | $ 32,142 | $ 1,244 | $ 6,006 | $ 8,873 | $ 14,283 | $ 4,058 | $ 4,639 | $ 4,640 | $ 5,181 | $ 3,595 | $ 44,917 | $ 33,220 | $ 18,055 | |||
Earnings (loss) per common and common equivalent share [Abstract] | ||||||||||||||||||
Basic (in dollars per share) | $ 0.19 | $ 1.05 | $ 3.44 | $ 0.14 | $ 0.70 | $ 1.04 | $ 1.68 | $ 0.49 | $ 0.64 | $ 0.67 | $ 0.79 | $ 0.58 | $ 4.86 | [1] | $ 3.93 | [1] | $ 2.68 | [1] |
Diluted (in dollars per share) | 0.19 | 1.04 | 3.42 | 0.14 | 0.70 | 1.04 | 1.67 | 0.49 | 0.63 | 0.66 | 0.78 | 0.58 | $ 4.83 | [1] | $ 3.91 | [1] | $ 2.66 | [1] |
Dividend declared per share (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | ||||||
[1] | See Reclassification and Revision of Prior Period Balances under Note 1 Summary of Significant Accounting Policies for additional information describing adjustments made to the Company's EPS calculation. Basic EPS for the fiscal year ended September 30, 2016 of $3.95 was corrected to $3.93 and diluted EPS of $3.92 was corrected to $3.91. |
FAIR VALUES OF FINANCIAL INST80
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) | Sep. 30, 2017 | Sep. 30, 2016 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 |
Available For Sale | ||
Total debt securities | 586,454,000 | 558,940,000 |
Total securities | 1,693,431,000 | 1,469,249,000 |
Held To Maturity | ||
Total securities | 564,185,000 | 632,574,000 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 292,000 | 76,000 |
Level 1 [Member] | ||
Available For Sale | ||
Total securities | 1,445,000 | 1,125,000 |
Held To Maturity | ||
Total securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 1 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 1 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 2 [Member] | ||
Available For Sale | ||
Total securities | 1,691,986,000 | 1,468,124,000 |
Held To Maturity | ||
Total securities | 564,185,000 | 632,574,000 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 2 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 2 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | 0 |
Level 3 [Member] | ||
Available For Sale | ||
Total securities | 0 | 0 |
Held To Maturity | ||
Total securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 1,318,402,000 | 926,803,000 |
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 196,970,000 | 163,886,000 |
Level 3 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 576,330,000 | 422,307,000 |
Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 32,870,000 | 36,897,000 |
Recurring [Member] | ||
Available For Sale | ||
Trust preferred and corporate securities | 12,978,000 | |
Small business administration securities | 57,871,000 | 80,719,000 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 950,829,000 | 698,672,000 |
Mortgage-backed securities | 586,454,000 | 558,940,000 |
Total debt securities | 1,691,986,000 | 1,468,124,000 |
Common Equities and Mutual Funds, Available-for-Sale | 1,445,000 | 1,125,000 |
Total securities | 1,693,431,000 | 1,469,249,000 |
Held To Maturity | ||
Trust preferred and corporate securities | 0 | |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 19,368,000 | 20,937,000 |
Non-bank qualified obligations of states and political subdivisions | 432,361,000 | 477,202,000 |
Mortgage-backed securities | 112,456,000 | 134,435,000 |
Total debt securities | 564,185,000 | 632,574,000 |
Common equities and mutual funds | 0 | 0 |
Total securities | 564,185,000 | 632,574,000 |
Asset Backed Securities Available For Sale Fair Value Disclosure | 96,832,000 | 116,815,000 |
Asset Backed Securities Held To Maturity | 0 | 0 |
Recurring [Member] | Level 1 [Member] | ||
Available For Sale | ||
Trust preferred and corporate 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 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common Equities and Mutual Funds, Available-for-Sale | 1,445,000 | 1,125,000 |
Total securities | 1,445,000 | 1,125,000 |
Held To Maturity | ||
Trust preferred and corporate 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 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total securities | 0 | 0 |
Asset Backed Securities Available For Sale Fair Value Disclosure | 0 | 0 |
Asset Backed Securities Held To Maturity | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Available For Sale | ||
Trust preferred and corporate securities | 12,978,000 | |
Small business administration securities | 57,871,000 | 80,719,000 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 950,829,000 | 698,672,000 |
Mortgage-backed securities | 586,454,000 | 558,940,000 |
Total debt securities | 1,691,986,000 | 1,468,124,000 |
Common Equities and Mutual Funds, Available-for-Sale | 0 | 0 |
Total securities | 1,691,986,000 | 1,468,124,000 |
Held To Maturity | ||
Trust preferred and corporate securities | 0 | |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 19,368,000 | 20,937,000 |
Non-bank qualified obligations of states and political subdivisions | 432,361,000 | 477,202,000 |
Mortgage-backed securities | 112,456,000 | 134,435,000 |
Total debt securities | 564,185,000 | 632,574,000 |
Common equities and mutual funds | 0 | 0 |
Total securities | 564,185,000 | 632,574,000 |
Asset Backed Securities Available For Sale Fair Value Disclosure | 96,832,000 | 116,815,000 |
Asset Backed Securities Held To Maturity | 0 | 0 |
Recurring [Member] | Level 3 [Member] | ||
Available For Sale | ||
Trust preferred and corporate 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 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common Equities and Mutual Funds, Available-for-Sale | 0 | 0 |
Total securities | 0 | 0 |
Held To Maturity | ||
Trust preferred and corporate 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 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total securities | 0 | 0 |
Asset Backed Securities Available For Sale Fair Value Disclosure | 0 | 0 |
Asset Backed Securities Held To Maturity | 0 | 0 |
Nonrecurring [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 292,000 | 144,000 |
Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 68,000 | |
Nonrecurring [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 68,000 | |
Nonrecurring [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 292,000 | 76,000 |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Nonrecurring [Member] | Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Nonrecurring [Member] | Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 0 | |
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Total | 292,000 | 144,000 |
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 68,000 | |
Nonrecurring [Member] | Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Impaired Loans, Net | 68,000 | |
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Foreclosed real estate and repossessed assets | $ 292,000 | $ 76,000 |
FAIR VALUES OF FINANCIAL INST81
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2017 | Sep. 30, 2016 | ||
Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Range of estimated selling cost (in hundredths) | 4.00% | ||
Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Range of estimated selling cost (in hundredths) | 10.00% | ||
Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of Impaired Loans, Net and Foreclosed Assets, Net | $ 1,318,402 | $ 926,803 | |
Impaired Loans [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of Impaired Loans, Net and Foreclosed Assets, Net | $ 0 | 68 | |
Valuation techniques | [1] | Appraised values | |
Foreclosed Assets [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value of Impaired Loans, Net and Foreclosed Assets, Net | $ 292 | $ 76 | |
Valuation techniques | [1] | Appraised values | |
[1] | The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. |
FAIR VALUES OF FINANCIAL INST82
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 |
Financial assets [Abstract] | |||
Securities available for sale | $ 1,693,431 | $ 1,469,249 | |
Securities held to maturity | 564,185 | 632,574 | |
Financial liabilities [Abstract] | |||
Capital leases | 0 | 0 | $ 2,259 |
Trust preferred securities | 10,310 | 10,310 | |
Subordinated debentures | 73,347 | ||
Level 1 [Member] | |||
Financial assets [Abstract] | |||
Cash and cash equivalents | 1,267,586 | 773,830 | |
Securities available for sale | 1,445 | 1,125 | |
Securities held to maturity | 0 | 0 | |
Total securities | 1,445 | 1,125 | |
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Federal Home Loan Bank stock | 0 | 0 | |
Accrued interest receivable | 19,380 | 17,199 | |
Financial liabilities [Abstract] | |||
Non-interest bearing demand deposits | 2,454,057 | 2,167,522 | |
Interest bearing demand deposits, savings, and money markets | 169,557 | 136,568 | |
Certificates of deposit | 0 | 0 | |
Wholesale non-maturing deposits | 18,245 | ||
Wholesale certificates of deposits | 0 | ||
Total deposits | 2,641,859 | 2,304,090 | |
Advances from Federal Home Loan Bank | 0 | 0 | |
Federal funds purchased | 987,000 | 992,000 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Capital leases | 0 | 0 | |
Trust preferred securities | 0 | 0 | |
Subordinated debentures | 0 | 0 | |
Accrued interest payable | 2,280 | 875 | |
Level 2 [Member] | |||
Financial assets [Abstract] | |||
Cash and cash equivalents | 0 | 0 | |
Securities available for sale | 1,691,986 | 1,468,124 | |
Securities held to maturity | 564,185 | 632,574 | |
Total securities | 2,256,171 | 2,100,698 | |
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Federal Home Loan Bank stock | 61,123 | 47,512 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities [Abstract] | |||
Non-interest bearing demand deposits | 0 | 0 | |
Interest bearing demand deposits, savings, and money markets | 0 | 0 | |
Certificates of deposit | 123,094 | 125,772 | |
Wholesale non-maturing deposits | 0 | ||
Wholesale certificates of deposits | 457,509 | ||
Total deposits | 580,603 | 125,772 | |
Advances from Federal Home Loan Bank | 415,003 | 108,168 | |
Federal funds purchased | 0 | 0 | |
Securities sold under agreements to repurchase | 2,472 | 3,039 | |
Capital leases | 1,938 | 2,018 | |
Trust preferred securities | 10,447 | 10,437 | |
Subordinated debentures | 76,500 | 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] | |||
Impaired Loans, Net | 1,318,402 | 926,803 | |
Federal Home Loan Bank stock | 0 | 0 | |
Accrued interest receivable | 0 | 0 | |
Financial liabilities [Abstract] | |||
Non-interest bearing demand deposits | 0 | 0 | |
Interest bearing demand deposits, savings, and money markets | 0 | 0 | |
Certificates of deposit | 0 | 0 | |
Wholesale non-maturing deposits | 0 | ||
Wholesale certificates of deposits | 0 | ||
Total deposits | 0 | 0 | |
Advances from Federal Home Loan Bank | 0 | 0 | |
Federal funds purchased | 0 | 0 | |
Securities sold under agreements to repurchase | 0 | 0 | |
Capital leases | 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 | 1,267,586 | 773,830 | |
Securities available for sale | 1,693,431 | 1,469,249 | |
Securities held to maturity | 563,529 | 619,853 | |
Total securities | 2,256,960 | 2,089,102 | |
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 1,326,832 | 925,894 | |
Federal Home Loan Bank stock | 61,123 | 47,512 | |
Accrued interest receivable | 19,380 | 17,199 | |
Financial liabilities [Abstract] | |||
Non-interest bearing demand deposits | 2,454,057 | 2,167,522 | |
Interest bearing demand deposits, savings, and money markets | 169,557 | 136,568 | |
Certificates of deposit | 123,637 | 125,992 | |
Wholesale non-maturing deposits | 18,245 | ||
Wholesale certificates of deposits | 457,928 | ||
Total deposits | 3,223,424 | 2,430,082 | |
Advances from Federal Home Loan Bank | 415,000 | 107,000 | |
Federal funds purchased | 987,000 | 992,000 | |
Securities sold under agreements to repurchase | 2,472 | 3,039 | |
Capital leases | 1,938 | 2,018 | |
Trust preferred securities | 10,310 | 10,310 | |
Subordinated debentures | 73,347 | 73,211 | |
Accrued interest payable | 2,280 | 875 | |
Estimated Fair Value [Member] | |||
Financial assets [Abstract] | |||
Cash and cash equivalents | 1,267,586 | 773,830 | |
Securities available for sale | 1,693,431 | 1,469,249 | |
Securities held to maturity | 564,185 | 632,574 | |
Total securities | 2,257,616 | 2,101,823 | |
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 1,318,402 | 926,803 | |
Federal Home Loan Bank stock | 61,123 | 47,512 | |
Accrued interest receivable | 19,380 | 17,199 | |
Financial liabilities [Abstract] | |||
Non-interest bearing demand deposits | 2,454,057 | 2,167,522 | |
Interest bearing demand deposits, savings, and money markets | 169,557 | 136,568 | |
Certificates of deposit | 123,094 | 125,772 | |
Wholesale non-maturing deposits | 18,245 | ||
Wholesale certificates of deposits | 457,509 | ||
Total deposits | 3,222,462 | 2,429,862 | |
Advances from Federal Home Loan Bank | 415,003 | 108,168 | |
Federal funds purchased | 987,000 | 992,000 | |
Securities sold under agreements to repurchase | 2,472 | 3,039 | |
Capital leases | 1,938 | 2,018 | |
Trust preferred securities | 10,447 | 10,437 | |
Subordinated debentures | 76,500 | 77,250 | |
Accrued interest payable | 2,280 | 875 | |
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 196,970 | 163,886 | |
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 196,706 | 162,298 | |
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 196,970 | 163,886 | |
Commercial and Multifamily Real Estate Loans [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Commercial and Multifamily Real Estate Loans [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Commercial and Multifamily Real Estate Loans [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 576,330 | 422,307 | |
Commercial and Multifamily Real Estate Loans [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 585,510 | 422,932 | |
Commercial and Multifamily Real Estate Loans [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 576,330 | 422,307 | |
Agricultural Real Estate Loans [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Agricultural Real Estate Loans [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Agricultural Real Estate Loans [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 61,584 | 63,868 | |
Agricultural Real Estate Loans [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 61,800 | 63,612 | |
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 61,584 | 63,868 | |
Consumer Loans [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Consumer Loans [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Consumer Loans [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 163,961 | 36,738 | |
Consumer Loans [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 163,004 | 37,094 | |
Consumer Loans [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 163,961 | 36,738 | |
Commercial Operating [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Commercial Operating [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Commercial Operating [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 35,723 | 31,108 | |
Commercial Operating [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 35,759 | 31,271 | |
Commercial Operating [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 35,723 | 31,108 | |
Agricultural Operating Loans [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Agricultural Operating Loans [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Agricultural Operating Loans [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 32,870 | 36,897 | |
Agricultural Operating Loans [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 33,594 | 37,083 | |
Agricultural Operating Loans [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 32,870 | 36,897 | |
Premium Finance Loans [Member] | Level 1 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Premium Finance Loans [Member] | Level 2 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 0 | 0 | |
Premium Finance Loans [Member] | Level 3 [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 250,964 | 172,000 | |
Premium Finance Loans [Member] | Carrying Amount [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | 250,459 | 171,604 | |
Premium Finance Loans [Member] | Estimated Fair Value [Member] | |||
Loans receivable: [Abstract] | |||
Impaired Loans, Net | $ 250,964 | $ 172,000 |
GOODWILL AND INTANGIBLE ASSET83
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||
Sep. 30, 2017 | Sep. 30, 2017 | Sep. 30, 2016 | Sep. 30, 2015 | Sep. 30, 2017 | Dec. 14, 2016 | Nov. 01, 2016 | Sep. 30, 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 | ||||||||
Amortization during the period | (12,363) | (4,828) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 98,723 | 98,723 | 36,928 | 36,928 | ||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 28,921 | 33,577 | ||||||||
Acquisitions during the period | 46,397 | 172 | ||||||||
Amortization during the period | (12,363) | (4,828) | ||||||||
Write-offs during the period | (10,777) | 0 | ||||||||
Balance, end of period | 52,178 | 52,178 | 28,921 | 33,577 | ||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Amount Upon Acquisition | 35,369 | |||||||||
Accumulated amortization | (18,827) | (6,448) | ||||||||
Accumulated impairment | (10,777) | |||||||||
Balance at the end of the period | 81,782 | 81,782 | 35,369 | |||||||
Intangible impairment | 10,200 | 10,248 | 0 | 0 | ||||||
Anticipated intangible amortization [Abstract] | ||||||||||
2,018 | 7,706 | |||||||||
2,019 | 7,147 | |||||||||
2,020 | 5,749 | |||||||||
2,021 | 5,179 | |||||||||
2,022 | 4,257 | |||||||||
Thereafter | 22,140 | |||||||||
Total anticipated intangible amortization | 52,178 | $ 28,921 | 33,577 | 33,577 | 52,178 | 28,921 | ||||
AFS/IBEX Financial Services Inc [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 11,600 | |||||||||
EPS Financial, LLC [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 30,375 | |||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 16 years 1 month 6 days | |||||||||
Refund Advantage [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 25,400 | |||||||||
Specialty Consumer Services [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 31,419 | |||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 10 years 2 months 12 days | |||||||||
Trademark [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Amortization during the period | $ (598) | (290) | ||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 5,149 | 5,439 | ||||||||
Acquisitions during the period | 5,500 | 0 | ||||||||
Amortization during the period | (598) | (290) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 10,051 | 10,051 | 5,149 | 5,439 | ||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Amount Upon Acquisition | 5,490 | |||||||||
Accumulated amortization | (939) | (341) | ||||||||
Accumulated impairment | 0 | |||||||||
Balance at the end of the period | 10,990 | 10,990 | 5,490 | |||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | 10,051 | $ 5,149 | 5,439 | 5,439 | 10,051 | 5,149 | ||||
Trademark [Member] | EPS Financial, LLC [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 15 years | |||||||||
Trademark [Member] | Specialty Consumer Services [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 5 years | |||||||||
Non-Compete [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Amortization during the period | $ (525) | (100) | ||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 127 | 227 | ||||||||
Acquisitions during the period | 2,180 | 0 | ||||||||
Amortization during the period | (525) | (100) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 1,782 | 1,782 | 127 | 227 | ||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Amount Upon Acquisition | 300 | |||||||||
Accumulated amortization | (698) | (173) | ||||||||
Accumulated impairment | 0 | |||||||||
Balance at the end of the period | 2,480 | 2,480 | 300 | |||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | 1,782 | $ 127 | 227 | 227 | 1,782 | 127 | ||||
Non-Compete [Member] | EPS Financial, LLC [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 3 years | |||||||||
Non-Compete [Member] | Specialty Consumer Services [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 4 years 1 month 6 days | |||||||||
Customer Relationships [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Amortization during the period | $ (10,405) | (4,221) | ||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 20,590 | 24,811 | ||||||||
Acquisitions during the period | 31,770 | 0 | ||||||||
Amortization during the period | (10,405) | (4,221) | ||||||||
Write-offs during the period | (10,248) | 0 | ||||||||
Balance, end of period | 31,707 | 31,707 | 20,590 | 24,811 | ||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Amount Upon Acquisition | 26,040 | |||||||||
Accumulated amortization | (15,855) | (5,450) | ||||||||
Accumulated impairment | (10,248) | |||||||||
Balance at the end of the period | 57,810 | 57,810 | 26,040 | |||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | 31,707 | $ 20,590 | 24,811 | 24,811 | 31,707 | 20,590 | ||||
Customer Relationships [Member] | EPS Financial, LLC [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 20 years | |||||||||
Customer Relationships [Member] | Refund Advantage [Member] | Minimum [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 12 years | |||||||||
Customer Relationships [Member] | Refund Advantage [Member] | Maximum [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 20 years | |||||||||
Customer Relationships [Member] | Specialty Consumer Services [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 9 years 1 month 6 days | |||||||||
Other [Member] | ||||||||||
Goodwill [Roll Forward] | ||||||||||
Amortization during the period | $ (835) | (217) | ||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 3,055 | 3,100 | ||||||||
Acquisitions during the period | 6,947 | 172 | ||||||||
Amortization during the period | (835) | (217) | ||||||||
Write-offs during the period | (529) | 0 | ||||||||
Balance, end of period | 8,638 | 8,638 | 3,055 | 3,100 | ||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Amount Upon Acquisition | 3,539 | |||||||||
Accumulated amortization | (1,335) | (484) | ||||||||
Accumulated impairment | (529) | |||||||||
Balance at the end of the period | 10,502 | 10,502 | 3,539 | |||||||
Anticipated intangible amortization [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 8,638 | $ 3,055 | $ 3,100 | $ 3,100 | $ 8,638 | $ 3,055 | ||||
Other [Member] | EPS Financial, LLC [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 3 years | |||||||||
Other [Member] | Specialty Consumer Services [Member] | ||||||||||
Amortization of Intangible Assets Roll Forward [Roll Forward] | ||||||||||
Book Amortization Period | 15 years |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - USD ($) $ in Millions | Oct. 11, 2017 | Dec. 31, 2016 |
Subsequent Event [Line Items] | ||
Purchased student loans | $ 134 | |
Subsequent Event [Member] | ||
Subsequent Event [Line Items] | ||
Purchased student loans | $ 73 |