Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2018 | Aug. 07, 2018 | |
Document Information [Line Items] | ||
Entity Registrant Name | META FINANCIAL GROUP INC | |
Entity Central Index Key | 907,471 | |
Current Fiscal Year End Date | --09-30 | |
Entity Filer Category | Large Accelerated Filer | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2018 | |
Common Stock [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 13,059,722 | |
Common Stock, Nonvoting [Member] | ||
Document Information [Line Items] | ||
Entity Common Stock, Shares Outstanding | 0 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 71,276 | $ 1,267,586 |
Investment securities available for sale | 1,351,538 | 1,106,977 |
Mortgage-backed securities available for sale | 575,999 | 586,454 |
Investment securities held to maturity | 216,160 | 449,840 |
Mortgage-backed securities held to maturity | 8,218 | 113,689 |
Loans receivable | 1,597,294 | 1,325,371 |
Allowance for loan losses | (21,950) | (7,534) |
Federal Home Loan Bank Stock, at cost | 7,446 | 61,123 |
Accrued interest receivable | 17,825 | 19,380 |
Premises, furniture, and equipment, net | 20,374 | 19,320 |
Bank-owned life insurance | 86,655 | 84,702 |
Foreclosed real estate and repossessed assets | 29,922 | 292 |
Goodwill | 98,723 | 98,723 |
Intangible assets | 46,098 | 52,178 |
Prepaid assets | 23,211 | 28,392 |
Deferred taxes | 23,025 | 9,101 |
Other assets | 17,345 | 12,738 |
Total assets | 4,169,159 | 5,228,332 |
LIABILITIES | ||
Non-interest-bearing checking | 2,637,987 | 2,454,057 |
Interest-bearing checking | 103,065 | 67,294 |
Savings deposits | 57,356 | 53,505 |
Money market deposits | 45,115 | 48,758 |
Time certificates of deposit | 57,151 | 123,637 |
Wholesale deposits | 620,959 | 476,173 |
Total deposits | 3,521,633 | 3,223,424 |
Short-term debt | 27,290 | 1,404,534 |
Long-term debt | 85,580 | 85,533 |
Accrued interest payable | 3,705 | 2,280 |
Accrued expenses and other liabilities | 87,038 | 78,065 |
Total liabilities | 3,725,246 | 4,793,836 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2018 and September 30, 2017, respectively | 0 | 0 |
Additional paid-in capital | 267,804 | 258,336 |
Retained earnings | 206,284 | 167,164 |
Accumulated other comprehensive (loss) income | (28,601) | 9,166 |
Treasury stock, at cost, 20,991 and 3,836 common shares at June 30, 2018 and September 30, 2017, respectively | (1,671) | (266) |
Total stockholders’ equity | 443,913 | 434,496 |
Total liabilities and stockholders’ equity | 4,169,159 | 5,228,332 |
Common stock, $.01 par value; 90,000,000 and 15,000,000 shares authorized, 9,721,526 and 9,626,431 shares issued, 9,700,535 and 9,622,595 shares outstanding at June 30, 2018 and September 30, 2017, respectively [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | 97 | 96 |
Common stock, Nonvoting, $.01 par value; 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2018 and September 30, 2017, respectively [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock | $ 0 | $ 0 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - $ / shares | Jun. 30, 2018 | Sep. 30, 2017 |
STOCKHOLDERS’ EQUITY | ||
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common Stock [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 30,000,000 | 15,000,000 |
Common stock, shares issued (in shares) | 9,720,536 | 9,626,431 |
Common stock, shares outstanding (in shares) | 9,699,591 | 9,622,595 |
Common Stock, Nonvoting [Member] | ||
STOCKHOLDERS’ EQUITY | ||
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Common stock, shares issued (in shares) | 0 | 0 |
Common stock, shares outstanding (in shares) | 0 | 0 |
Treasury stock (in shares) | 20,945 | 3,836 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Interest and dividend income: | ||||
Loans receivable, including fees | $ 19,056 | $ 14,089 | $ 53,344 | $ 37,540 |
Mortgage-backed securities | 3,950 | 4,544 | 11,755 | 12,345 |
Other investments | 11,098 | 10,228 | 33,234 | 29,269 |
Total interest and dividend income | 34,104 | 28,861 | 98,333 | 79,154 |
Interest expense: | ||||
Deposits | 2,264 | 1,039 | 7,106 | 4,161 |
FHLB advances and other borrowings | 3,429 | 2,879 | 9,215 | 6,251 |
Total interest expense | 5,693 | 3,918 | 16,321 | 10,412 |
Net interest income | 28,411 | 24,943 | 82,012 | 68,742 |
Provision for loan losses | 5,315 | 1,240 | 24,726 | 10,732 |
Net interest income after provision for loan losses | 23,096 | 23,703 | 57,286 | 58,010 |
Non-interest income: | ||||
Bank-owned life insurance | 633 | 656 | 1,952 | 1,548 |
(Loss) gain on sale of securities available-for-sale, net (Includes ($22) and $47 reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended June 30, 2018 and 2017, respectively and ($1,198) and ($1,331) for the nine months ended June 30, 2018 and 2017, respectively) | (22) | 47 | (1,198) | (1,331) |
Gain (loss) on foreclosed real estate | 0 | 0 | (19) | 7 |
Other income | 250 | 216 | 766 | 652 |
Total non-interest income | 33,225 | 30,820 | 159,912 | 142,339 |
Non-interest expense: | ||||
Compensation and benefits | 24,439 | 22,193 | 78,951 | 66,809 |
Refund transfer product expense | 1,694 | 1,623 | 11,665 | 11,852 |
Tax advance product expense | (19) | 72 | 1,736 | 3,239 |
Card processing | 7,068 | 5,755 | 20,798 | 18,377 |
Occupancy and equipment | 4,720 | 4,034 | 14,087 | 12,202 |
Legal and consulting | 2,781 | 1,375 | 8,436 | 5,603 |
Marketing | 416 | 381 | 1,637 | 1,461 |
Data processing | 301 | 344 | 958 | 1,099 |
Intangible amortization expense | 1,664 | 1,887 | 6,077 | 10,494 |
Other expense | 5,988 | 4,555 | 17,247 | 14,782 |
Total non-interest expense | 49,053 | 42,219 | 161,592 | 145,918 |
Income before income tax expense | 7,268 | 12,304 | 55,606 | 54,431 |
Income tax expense (Includes ($6) and $18 reclassified from accumulated other comprehensive income (loss) for the three months ended June 30, 2018 and 2017, respectively and ($335) and ($499) for the nine months ended June 30, 2018 and 2017, respectively) | 476 | 2,517 | 12,708 | 11,258 |
Net income | $ 6,792 | $ 9,787 | $ 42,898 | $ 43,173 |
Earnings per common share | ||||
Basic (in dollars per share) | $ 0.70 | $ 1.05 | $ 4.43 | $ 4.69 |
Diluted (in dollars per share) | $ 0.70 | $ 1.04 | $ 4.41 | $ 4.66 |
Refund transfer product fees | ||||
Non-interest income: | ||||
Revenue from contract with customer | $ 7,358 | $ 5,785 | $ 41,353 | $ 38,448 |
Tax advance product fees | ||||
Non-interest income: | ||||
Revenue from contract with customer | (46) | (108) | 35,739 | 31,460 |
Card fees | ||||
Non-interest income: | ||||
Revenue from contract with customer | 22,807 | 23,052 | 74,910 | 68,013 |
Loan fees | ||||
Non-interest income: | ||||
Revenue from contract with customer | 1,111 | 982 | 3,445 | 3,034 |
Deposit fees | ||||
Non-interest income: | ||||
Revenue from contract with customer | $ 1,134 | $ 190 | $ 2,964 | $ 508 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Non-interest income: | ||||
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ (166) | $ (144) | $ (1,176) | $ (1,378) |
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) | $ (46) | $ (54) | $ (329) | $ (517) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 6,792 | $ 9,787 | $ 42,898 | $ 43,173 |
Other comprehensive (loss) income: | ||||
Change in net unrealized (loss) gain on securities | (9,905) | 11,902 | (53,377) | (25,398) |
Losses (gains) realized in net income | 22 | (47) | 1,198 | 1,331 |
Total available for sale adjustment | (9,883) | 11,855 | (52,179) | (24,067) |
LESS: Deferred income tax effect | (2,447) | 4,472 | (14,412) | (8,544) |
Total other comprehensive (loss) income | (7,436) | 7,383 | (37,767) | (15,523) |
Total comprehensive (loss) income | $ (644) | $ 17,170 | $ 5,131 | $ 27,650 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Adoption of Accounting Standards Update 2016-09 | $ 104 | $ (104) | ||||
Balance at Sep. 30, 2016 | $ 334,975 | $ 85 | 184,780 | 127,190 | $ 22,920 | $ 0 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock | (3,625) | (3,625) | ||||
Issuance of common shares due to ESOP | 1,174 | 1,174 | ||||
Issuance of common shares due to acquisition | 37,296 | 5 | 37,291 | |||
Issuance of common shares due to exercise of stock options | 529 | 529 | ||||
Contingent consideration equity earnout due to acquisition | 24,142 | 24,142 | ||||
Issuance of common shares due to restricted stock | 4 | 4 | ||||
Shares repurchased for tax withholdings on stock compensation | (337) | (337) | ||||
Stock compensation | 8,405 | 8,405 | ||||
Net change in unrealized losses on securities, net of income taxes | (15,523) | (15,523) | ||||
Net income | 43,173 | 43,173 | ||||
Balance at Jun. 30, 2017 | 430,213 | 94 | 256,088 | 166,634 | 7,397 | 0 |
Balance at Sep. 30, 2017 | 434,496 | 96 | 258,336 | 167,164 | 9,166 | (266) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock | (3,778) | (3,778) | ||||
Issuance of common shares due to exercise of stock options | 147 | 147 | ||||
Issuance of common shares due to restricted stock | 1 | 1 | ||||
Issuance of common shares due to ESOP | 1,606 | 1,606 | ||||
Shares repurchased for tax withholdings on stock compensation | (2,131) | (726) | (1,405) | |||
Stock compensation | 8,441 | 8,441 | ||||
Net change in unrealized losses on securities, net of income taxes | (37,767) | (37,767) | ||||
Net income | 42,898 | 42,898 | ||||
Balance at Jun. 30, 2018 | $ 443,913 | $ 97 | $ 267,804 | $ 206,284 | $ (28,601) | $ (1,671) |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Cash dividends declared on common stock (in dollars per share) | $ 0.39 | $ 0.39 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Jun. 30, 2017 | |
Cash flows from operating activities: | ||
Net income | $ 42,898 | $ 43,173 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation, amortization and accretion, net | 27,995 | 35,002 |
Stock-based compensation expense | 8,441 | 8,405 |
Provision for loan losses | 24,726 | 10,732 |
(Recovery) provision for deferred taxes | 488 | (2,914) |
Gain on other assets | (1) | (21) |
Loss (gain) on sale of foreclosed real estate | 19 | (7) |
Loss on sale of securities available for sale, net | 1,198 | 1,331 |
Net change in accrued interest receivable | 1,555 | (4,632) |
Fair value adjustment of foreclosed real estate | 29 | 0 |
Originations of loans held for sale | 0 | (685,934) |
Proceeds from sales of loans held for sale | 0 | 685,934 |
Change in bank-owned life insurance value | (1,952) | (1,549) |
Net change in other assets | 577 | (24,179) |
Net change in accrued interest payable | 1,425 | 1,588 |
Excess contingent consideration paid | 0 | 248 |
Net change in accrued expenses and other liabilities | 4,879 | 16,080 |
Net cash provided by operating activities | 112,277 | 82,761 |
Cash flows from investing activities: | ||
Purchase of securities available-for-sale | (418,699) | (782,169) |
Proceeds from sales of securities available-for-sale | 312,863 | 317,099 |
Proceeds from maturities and principal repayments of securities available for sale | 115,878 | 86,516 |
Purchase of securities held to maturity | 0 | (932) |
Proceeds from maturities and principal repayments of securities held to maturity | 29,752 | 34,242 |
Purchase of bank owned life insurance | 0 | 25,000 |
Loans purchased | (95,169) | (136,172) |
Loans sold | 19,961 | 2,141 |
Net change in loans receivable | (238,679) | (168,537) |
Proceeds from sales of foreclosed real estate or other assets | 244 | 97 |
Net cash paid for acquisitions | 0 | (29,425) |
Federal Home Loan Bank stock purchases | (713,444) | (468,291) |
Federal Home Loan Bank stock redemptions | 767,120 | 499,480 |
Proceeds from the sale of premises and equipment | 0 | 57 |
Purchase of premises and equipment | (5,176) | (5,699) |
Net cash used in investing activities | (225,349) | (676,593) |
Cash flows from financing activities: | ||
Net change in checking, savings, and money market deposits | 219,909 | 320,512 |
Net change in time deposits | (66,486) | (42,232) |
Net change in wholesale deposits | 144,786 | 444,857 |
Net change in FHLB and other borrowings | (415,000) | (100,000) |
Net change in federal funds | (963,000) | (717,000) |
Net change in securities sold under agreements to repurchase | 754 | (938) |
Principal payments on capital lease obligations | (46) | (59) |
Cash dividends paid | (3,778) | (3,625) |
Purchase of shares by ESOP | 1,606 | 1,174 |
Issuance of restricted stock | 1 | 4 |
Proceeds from exercise of stock options and issuance of common stock | 147 | 529 |
Shares repurchased for tax withholdings on stock compensation | (2,131) | (337) |
Contingent consideration - cash paid | 0 | 17,253 |
Net cash used in financing activities | (1,083,238) | (114,368) |
Net change in cash and cash equivalents | (1,196,310) | (708,200) |
Cash and cash equivalents at beginning of period | 1,267,586 | 773,830 |
Cash and cash equivalents at end of period | 71,276 | 65,630 |
Cash paid during the period for: | ||
Interest | 17,746 | 8,824 |
Income taxes | 8,211 | 19,947 |
Franchise taxes | 199 | 156 |
Other taxes | 129 | 289 |
Supplemental schedule of non-cash investing activities: | ||
Loans transferred to foreclosed real estate and repossessed assets | (29,922) | (378) |
Securities transferred from held to maturity to available for sale | (306,000) | 0 |
Contingent consideration - equity | 0 | (24,142) |
Stock issued for acquisition | 0 | (37,296) |
Purchase of available-for-sale securities accrued, not paid | $ (4,117) | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2017 included in Meta Financial Group, Inc.’s (“Meta” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on November 29, 2017. Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted. The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X. Such information reflects all adjustments (consisting of normal recurring adjustments) that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three and nine month periods ended June 30, 2018 are not necessarily indicative of the results expected for the fiscal year ending September 30, 2018 . |
CREDIT DISCLOSURES
CREDIT DISCLOSURES | 9 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
CREDIT DISCLOSURES | CREDIT DISCLOSURES The allowance for loan losses represents management’s estimate of probable loan losses which have been incurred as of the date of the consolidated financial statements. The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. The allowance consists of specific, general and unallocated components. The specific component relates to impaired loans. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered impaired and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Homogeneous loan populations are collectively evaluated for impairment. These loan populations may include commercial insurance premium finance loans, residential first mortgage loans secured by one-to-four family residences, residential construction loans, home equity and second mortgage loans, and tax product loans. Commercial and agricultural loans as well as mortgage loans secured by other properties are monitored regularly by the Bank given the larger balances. When analysis of the borrower's operating results and financial condition indicates that underlying cash flows of the borrower’s business is not adequate to meet its debt service requirements, the individual loan or loan relationship is evaluated for impairment. Loans, or portions thereof, are charged off when collection of principal becomes doubtful. Generally, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 180 days or more for the purchased student loan portfolios, 120 days or more for consumer credit products, and 90 days or more for community banking loans. Action is taken to charge off ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally considered impaired. Loans receivable at June 30, 2018 and September 30, 2017 were as follows: June 30, 2018 September 30, 2017 (Dollars in Thousands) 1-4 Family Real Estate $ 214,754 $ 196,706 Commercial and Multi-Family Real Estate 716,495 585,510 Agricultural Real Estate 35,475 61,800 Consumer 258,158 163,004 Commercial Operating 46,069 35,759 Agricultural Operating 24,621 33,594 Commercial Insurance Premium Finance 303,603 250,459 Total Loans Receivable 1,599,175 1,326,832 Allowance for Loan Losses (21,950 ) (7,534 ) Net Deferred Loan Origination Fees (1,881 ) (1,461 ) Total Loans Receivable, Net $ 1,575,344 $ 1,317,837 Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and nine months ended June 30, 2018 and 2017 was as follows: 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2018 Allowance for loan losses: Beginning balance $ 883 $ 3,904 $ 146 $ 18,074 $ 1,716 $ 619 $ 746 $ 990 $ 27,078 Provision (recovery) for loan losses (231 ) 711 51 4,476 (26 ) (102 ) 304 132 5,315 Charge offs — — — (9,000 ) (1,507 ) — (243 ) — (10,750 ) Recoveries — — — — 1 207 99 — 307 Ending balance $ 652 $ 4,615 $ 197 $ 13,550 $ 184 $ 724 $ 906 $ 1,122 $ 21,950 Nine Months Ended June 30, 2018 Allowance for loan losses: Beginning balance $ 803 $ 2,670 $ 1,390 $ 6 $ 158 $ 1,184 $ 796 $ 527 $ 7,534 Provision (recovery) for loan (123 ) 1,945 (1,193 ) 22,174 1,480 (721 ) 569 595 24,726 Charge offs (31 ) — — (9,000 ) (1,507 ) — (711 ) — (11,249 ) Recoveries 3 — — 370 53 261 252 — 939 Ending balance $ 652 $ 4,615 $ 197 $ 13,550 $ 184 $ 724 $ 906 $ 1,122 $ 21,950 Ending balance: individually evaluated for impairment 25 — — — — — — — 25 Ending balance: collectively evaluated for impairment 627 4,615 197 13,550 184 724 906 1,122 21,925 Total $ 652 $ 4,615 $ 197 $ 13,550 $ 184 $ 724 $ 906 $ 1,122 $ 21,950 Loans: Ending balance: individually 229 409 — 47 — 2,135 — — 2,820 Ending balance: collectively 214,525 716,086 35,475 258,111 46,069 22,486 303,603 — 1,596,355 Total $ 214,754 $ 716,495 $ 35,475 $ 258,158 $ 46,069 $ 24,621 $ 303,603 $ — $ 1,599,175 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Provision (recovery) for loan losses 510 386 (80 ) 142 249 (44 ) 187 (110 ) 1,240 Charge offs — — — (1 ) (799 ) — (94 ) — (894 ) Recoveries — — — — 5 — 15 — 20 Ending balance $ 806 $ 2,128 $ 1,444 $ 7,847 $ 222 $ 1,305 $ 705 $ 511 $ 14,968 Nine Months Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Provision (recovery) for loan 152 (70 ) 1,302 7,773 1,244 (39 ) 412 (42 ) 10,732 Charge offs — — — (1 ) (1,149 ) — (352 ) — (1,502 ) Recoveries — — — 24 10 12 57 — 103 Ending balance $ 806 $ 2,128 $ 1,444 $ 7,847 $ 222 $ 1,305 $ 705 $ 511 $ 14,968 Ending balance: individually — — — — — — — — — Ending balance: collectively 806 2,128 1,444 7,847 222 1,305 705 511 14,968 Total $ 806 $ 2,128 $ 1,444 $ 7,847 $ 222 $ 1,305 $ 705 $ 511 $ 14,968 Loans: Ending balance: individually 133 1,301 — — — — — — 1,434 Ending balance: collectively 190,598 492,558 62,521 172,151 39,076 35,471 231,587 — 1,223,962 Total $ 190,731 $ 493,859 $ 62,521 $ 172,151 $ 39,076 $ 35,471 $ 231,587 $ — $ 1,225,396 Federal regulations promulgated by the Office of the Comptroller of the Currency (the "OCC"), which is the primary federal regulator of the Company's wholly-owned subsidiary, MetaBank (the "Bank"), provide for the classification of loans and other assets such as debt and equity securities. The loan classification and risk rating definitions for the Company and the Bank are generally as follows: Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating. Watch- A watch asset is generally credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets. Special Mention- Special mention assets are credits with potential weaknesses deserving management’s close attention and if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher. Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified have well-defined weaknesses creating a distinct possibility that the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard. Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors the asset’s classification as loss is not yet appropriate. Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Company's balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When assets are classified as “loss,” the Company is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. The Company's determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances. The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the Allowance for Loan Losses. The asset classification of loans at June 30, 2018 and September 30, 2017 were as follows: June 30, 2018 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance Total (Dollars in Thousands) Pass $ 214,176 $ 705,347 $ 27,456 $ 258,090 $ 46,069 $ 15,210 $ 302,022 $ 1,568,370 Watch 123 10,953 — 68 — 2,487 1,581 15,212 Special Mention 241 195 4,222 — — 535 — 5,193 Substandard 214 — 3,797 — — 6,389 — 10,400 Doubtful — — — — — — — — $ 214,754 $ 716,495 $ 35,475 $ 258,158 $ 46,069 $ 24,621 $ 303,603 $ 1,599,175 September 30, 2017 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance 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 One-to-Four Family Residential Mortgage Lending . One-to-four family residential mortgage loan originations are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate and adjustable rate mortgage (“ARM”) loans for both permanent structures and those under construction. The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas. The Company originates one-to-four family residential mortgage loans with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the security property or the contract price. The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level. Residential loans generally do not include prepayment penalties. Due to consumer demand, the Company offers fixed-rate mortgage loans with terms up to 30 years, most of which conform to secondary market standards, such as Fannie Mae, Ginnie Mae, and Freddie Mac standards. The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales. Interest rates charged on these fixed-rate loans are competitively priced according to market conditions. The Company also offers five- and ten-year ARM loans. These loans have a fixed-rate for the stated period and, thereafter, adjust annually. These loans generally provide for an annual cap of up to 200 basis points and a lifetime cap of 600 basis points over the initial rate. As a consequence of using an initial fixed-rate and caps, the interest rates on these loans may not be as rate sensitive as the Company’s cost of funds. The Company’s ARMs do not permit negative amortization of principal and are not convertible into fixed-rate loans. The Company’s delinquency experience on its ARM loans has generally been similar to its experience on fixed-rate residential loans. The current low mortgage interest rate environment makes ARM loans relatively unattractive and very few are currently being originated. In underwriting one-to-four family residential real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors of the Company. The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Company generally contain a “due on sale” clause allowing the Company to declare the unpaid principal balance due and payable upon the sale of the security property. The Company has not engaged in sub-prime residential mortgage originations. Commercial and Multi-Family Real Estate Lending . The Company engages in commercial and multi-family real estate lending in its primary market area and surrounding areas and, in order to supplement its loan portfolio, has purchased whole loan and participation interests in loans from other financial institutions. The purchased loans and loan participation interests are generally secured by properties primarily located in the Midwest. The Company’s commercial and multi-family real estate loan portfolio is secured primarily by apartment buildings, office buildings and hotels. Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the security property, and are typically secured by guarantees of the borrowers. The Company has a variety of rate adjustment features and other terms in its commercial and multi-family real estate loan portfolio. Commercial and multi-family real estate loans provide for a margin over a number of different indices. In underwriting these loans, the Company analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan. Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers. Commercial and multi-family real estate loans generally present a higher level of risk than loans secured by one-to-four family residences. This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty of evaluating and monitoring these types of loans. Furthermore, the repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project. If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired. Agricultural Lending . The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer and other farm-related products. Agricultural operating loans are originated at either an adjustable or fixed rate of interest for up to a one year term or, in the case of livestock, upon sale. Such loans provide for payments of principal and interest at least annually or a lump sum payment upon maturity if the original term is less than one year. Loans secured by agricultural machinery are generally originated as fixed-rate loans with terms of up to seven years. Agricultural real estate loans are frequently originated with adjustable rates of interest. Generally, such loans provide for a fixed rate of interest for the first five to ten years, after which the loan will balloon or the interest rate will adjust annually. These loans generally amortize over a period of 20 to 25 years. Fixed-rate agricultural real estate loans generally have terms up to ten years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan. Agricultural lending affords the Company the opportunity to earn yields higher than those obtainable on one-to-four family residential lending, but involves a greater degree of risk than one-to-four family residential mortgage loans because of the typically larger loan amount. In addition, payments on loans are dependent on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized. The success of the loan may also be affected by many factors outside the control of the borrower. Weather presents one of the greatest risks as hail, drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral. This risk can be reduced by the farmer with a variety of insurance coverages which can help to ensure loan repayment. Government support programs and the Company generally require that farmers procure crop insurance coverage. Grain and livestock prices also present a risk as prices may decline prior to sale, resulting in a failure to cover production costs. These risks may be reduced by the farmer with the use of futures contracts or options to mitigate price risk. The Company frequently requires borrowers to use futures contracts or options to reduce price risk and help ensure loan repayment. Another risk is the uncertainty of government programs and other regulations. During periods of low commodity prices, the income from government programs can be a significant source of cash for the borrower to make loan payments, and if these programs are discontinued or significantly changed, cash flow problems or defaults could result. Finally, many farms are dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm. Consumer Lending. The Bank originates a variety of secured consumer loans, including home equity, home improvement, automobile and boat loans and loans secured by savings deposits. In addition, the Bank offers other secured and unsecured consumer loans and originates most of its community banking consumer loans in its primary market areas and surrounding areas. In addition, the Bank’s consumer lending portfolio includes two purchased student loan portfolios, consumer lending products, and taxpayer advance loans. The Bank's community banking consumer loan portfolio consists primarily of home equity loans and lines of credit. Substantially all of the Bank's home equity loans and lines of credit are secured by second mortgages on principal residences. The Bank will lend amounts which, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan. Home equity loans and lines of credit generally have maximum terms of five years. The Bank primarily originates automobile loans on a direct basis to the borrower, as opposed to indirect loans, which are made when the Bank purchases loan contracts, often at a discount, from automobile dealers which have extended credit to their customers. The Bank’s automobile loans typically are originated at fixed interest rates with terms of up to 60 months for new and used vehicles. Loans secured by automobiles are generally originated for up to 80% of the N.A.D.A. book value of the automobile securing the loan. Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also may include a comparison of the value of the security, if any, in relation to the proposed loan amount. Consumer loans may entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. The Bank's purchased student loan portfolios are seasoned, floating rate, private portfolios that are serviced by ReliaMax Lending Services LLC. The portfolio purchased during the first quarter of fiscal year 2018 is indexed to the one-month LIBOR, while the portfolio purchased in the first quarter of fiscal year 2017 is indexed to the three-month LIBOR plus various margins. The Company received written notification on June 18, 2018 from ReliaMax Surety Company ("ReliaMax"), which informed policy holders that the South Dakota Division of Insurance filed a petition to have ReliaMax declared insolvent and to adopt a plan of liquidation. ReliaMax provided insurance coverage for the Company’s purchased, floating rate, seasoned student loan portfolios. In light of the potential impact to the Company’s insurance coverage with respect to the purchased student loan portfolios, the Company adjusted the allowance for loan losses attributable to the purchased student loan portfolios by $3.0 million for the third quarter of fiscal 2018. Through the acquisition of Specialty Consumer Services (“SCS”), the Bank acquired a platform that provides a total solution for marketplace lending, including underwriting and loan management in the direct-to-consumer credit business. The acquired platform allows the Bank to provide innovative lending solutions to the unbanked and under-banked segment through innovative consumer credit products. The Company designs and structures its credit programs in an effort to insulate the Company from program losses and to potentially increase the liquidity attributes of such lending program’s marketability to potential bank or other purchasers. While each program is different, all contain one or more types of credit enhancements, loss protections, or trigger events. When determining the applicable program enhancement, generally, the Company uses proprietary data provided by the Company’s partner, with respect to such program, supplemented with public data to design appropriate loss curves, shape of the curves, as well as implement stresses significantly higher than base to provide protection in changing credit cycles. Credit enhancements are typically built through holding excess program interest and fees in a reserve account to pay program credit losses. Waterfall positioning allows under certain circumstances for losses and Company program principal and interest to be paid before servicing or other program expenses. Trigger events allow programs and originations to be suspended if certain vintage loss limits are triggered or if cumulative loss percentages are triggered. These triggers are designed to allow the Company to address potential issues quickly. Other trigger events in certain programs provide for excess credit or reserve enhancements, which could be beyond excess interest amounts, should certain loss triggers be breached. Through June 30, 2018 , the Bank has launched two consumer credit programs. The Bank, including SCS, continues its development of new alternative portfolio lending products. During the second quarter of fiscal 2018, the Company entered into a three-year program agreement with Liberty Lending whereby the Bank provides personal loans to Liberty Lending customers. Meta and Liberty Lending market the program jointly through a wide variety of marketing channels. The loan products under this agreement are closed-end installment loans ranging from $3,500 to $45,000 in initial principal amount with durations of between 13 and 60 months. The Company expects to apply a provision of approximately 1% on outstanding loan balances within this program. The Company entered into a three-year agreement with Health Credit Services ("HCS") during the third quarter of fiscal 2018. The Bank approves and originates loans for elective medical procedures for select HCS provider offices throughout the United States. HCS works with its provider partners to market the loans, as well as provide servicing for them. The loan products offered are unsecured, closed-end installment loans with terms between 12 and 84 months and revolving lines of credit with durations between six and 60 months. The Company expects to apply a provision of approximately 1% on outstanding loan balances within this program. The Bank's tax services division provides short-term taxpayer advance loans. Taxpayers are underwritten to determine eligibility for the unsecured loans. Due to the nature of taxpayer advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. Generally, the Company will charge off the balance of a taxpayer advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful. Commercial Operating Lending . The Company also originates commercial operating loans. Most of the Company’s commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable. Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies. The Company also extends short-term commercial Electronic Return Originator ("ERO") advance loans through its tax services division as described in more detail below. The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage commercial lines of credit is one year. The loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan. The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower. Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s credit analysis. As described further below, such loans are believed to carry higher credit risk than more traditional lending activities. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income and which are secured by real property whose value tends to be more easily ascertainable, commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment). The Company’s commercial operating loans are usually, but not always, secured by business assets and personal guarantees. However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. Through its tax services division, the Company provides short-term ERO advance loans on a nationwide basis. These loans are typically utilized to purchase tax preparation software and to prepare tax offices for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Company will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful. Commercial Insurance Premium Finance Lending . Through its AFS/IBEX division, the Bank provides short-term and primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk otherwise known as commercial insurance premium financing. This includes, but is not limited to, policies for commercial property, casualty and liability risk. The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation. Commercial insurance premium financing is the business of extending credit to a policyholder to pay for insurance premiums when the insurance carrier requires payment in full at inception of coverage. Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term. The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine to ten months on average. The down payment is set such that if the policy is canceled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. Due to the nature of collateral for commercial insurance premium finance receivables, it customarily takes 60 - 210 days to convert the collateral into cash. In the event of default, AFS/IBEX, by statute and contract, has the power to cancel the insurance policy and establish a first position lien on the unearned portion of the premium from the insurance carrier. In the event of cancellation, the cash returned in payment of the unearned premium by the insurer has typically been sufficient to cover the receivable balance, the interest and other charges due. Due to notification requirements and processing time by most insurance carriers, many receivables will become delinquent beyond 90 days while the insurer is processing the return of the unearned premium. Generally, when a loan becomes d |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Jun. 30, 2018 | |
Receivables [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES At June 30, 2018 , the Company’s allowance for loan losses increased to $22.0 million from $7.5 million at September 30, 2017 . The increase in the allowance for loan losses from September 30, 2017 to June 30, 2018 was primarily due to the additional provision expense of $20.3 million related to tax services loans due to the Company retaining all tax services loans on its balance sheet, as compared to the previous year when a majority of these loans were sold. Also contributing to the increase was a $3.0 million provision on the Company's purchased student loan portfolios. During the nine months ended June 30, 2018 , the Company recorded a provision for loan losses of $24.7 million compared to $10.7 million for the same period of the prior year. The Company had $10.3 million of net charge-offs for the nine months ended June 30, 2018 , of which $8.6 million was related to a portion of the Company's taxpayer advances and $1.5 million was related to the charge offs of the Company's remaining ERO advance balances. This compared to $1.4 million of net charge-offs for the nine months ended June 30, 2017 . See “Consumer Lending” under Note 2 to the Notes to Condensed Consolidated Financial Statements, which is incorporated herein by reference, for further details on the Company's purchased student loan portfolios. The allowance for loan losses is established through the provision for loan losses based on management’s evaluation of the risk inherent in its loan portfolio and changes in the nature and volume of its loan activity, including those loans which are being specifically monitored by management. Such evaluation, which includes a review of loans for which full collectability may not be reasonably assured, considers, among other matters, the estimated fair value of the underlying collateral, economic conditions, historical loan loss experience and other factors that warrant recognition in providing for an appropriate loan loss allowance. Management closely monitors economic developments both regionally and nationwide and considers these factors when assessing the appropriateness of its allowance for loan losses. Management believes that, based on a detailed review of the loan portfolio, historic loan losses, current economic conditions, the size of the loan portfolio and other factors, the level of the allowance for loan losses at June 30, 2018 , reflected an appropriate allowance against probable losses from the loan portfolio. Although the Company maintains its allowance for loan losses at a level it considers to be appropriate, investors and others are cautioned that there can be no assurance that future losses will not exceed estimated amounts, or that additional provisions for loan losses will not be required in future periods. In addition, the Company’s determination of the allowance for loan losses is subject to review by the OCC, which can require the establishment of additional general or specific allowances. Real estate properties acquired through foreclosure are recorded at the lesser of fair value or the recorded investment. If fair value at the date of foreclosure is lower than the balance of the related loan, the difference will be charged to the allowance for loan losses at the time of transfer. Valuations are periodically updated by management and, if the value declines, a specific provision for losses on such property is established by a charge to operations. |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
EARNINGS PER COMMON SHARE | EARNINGS PER COMMON SHARE Earnings per share is computed after deducting dividends. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share 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 earnings per share calculations. A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and nine months ended June 30, 2018 and 2017 is presented below. Three Months Ended June 30, 2018 2017 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 6,792 $ 9,787 Weighted average common shares outstanding 9,699,824 9,349,989 Basic income per common share 0.70 1.05 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 6,792 $ 9,787 Weighted average common shares outstanding 9,699,824 9,349,989 Outstanding options - based upon the two-class method 39,836 60,320 Weighted average diluted common shares outstanding 9,739,660 9,410,309 Diluted income per common share 0.70 1.04 Nine Months Ended June 30, 2018 2017 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 42,898 $ 43,173 Weighted average common shares outstanding 9,681,103 9,208,867 Basic income per common share 4.43 4.69 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 42,898 $ 43,173 Weighted average common shares outstanding 9,681,103 9,208,867 Outstanding options - based upon the two-class method 38,892 60,524 Weighted average diluted common shares outstanding 9,719,995 9,269,391 Diluted income per common share 4.41 4.66 |
SECURITIES
SECURITIES | 9 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
SECURITIES | SECURITIES During the first quarter of fiscal 2018, the Company early adopted Accounting Standard Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." Due to the early adoption of the ASU, the Company transferred $204.7 million of investment securities and $101.3 million of MBS from Held to Maturity ("HTM") to Available for Sale ("AFS") during the first quarter of fiscal 2018. This change allows for enhanced balance sheet management and provides the opportunity for more liquidity, should it be needed. The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at June 30, 2018 and September 30, 2017 are presented below. Available For Sale At June 30, 2018 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Small business administration securities 51,785 27 (853 ) 50,959 Obligations of states and political subdivisions 14,472 60 (162 ) 14,370 Non-bank qualified obligations of states and political subdivisions 1,105,310 2,594 (24,430 ) 1,083,474 Asset-backed securities 199,400 1,784 (345 ) 200,839 Mortgage-backed securities 593,454 — (17,455 ) 575,999 Total debt securities 1,964,421 4,465 (43,245 ) 1,925,641 Common equities and mutual funds 1,347 550 (1 ) 1,896 Total available for sale securities $ 1,965,768 $ 5,015 $ (43,246 ) $ 1,927,537 At September 30, 2017 AMORTIZED GROSS GROSS FAIR (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 Held to Maturity At June 30, 2018 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 3,831 $ 16 $ (21 ) $ 3,826 Non-bank qualified obligations of states and political subdivisions 212,329 73 (9,916 ) 202,486 Mortgage-backed securities 8,218 — (372 ) 7,846 Total held to maturity securities $ 224,378 $ 89 $ (10,309 ) $ 214,158 At September 30, 2017 AMORTIZED GROSS GROSS FAIR (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 Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary. This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company did not have any trading securities at June 30, 2018 or September 30, 2017 . Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2018 and September 30, 2017 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Small business administration securities $ 47,646 $ (853 ) $ — $ — $ 47,646 $ (853 ) Obligations of states and political subdivisions 8,443 (162 ) — — 8,443 (162 ) Non-bank qualified obligations of states and political subdivisions 786,022 (23,032 ) 25,062 (1,398 ) 811,084 (24,430 ) Asset-backed securities 107,027 (345 ) — — 107,027 (345 ) Mortgage-backed securities 306,713 (6,289 ) 265,169 (11,166 ) 571,882 (17,455 ) Total debt securities 1,255,851 (30,681 ) 290,231 (12,564 ) 1,546,082 (43,245 ) Common equities and mutual funds 1,896 (1 ) — — 1,896 (1 ) Total available for sale securities $ 1,257,747 $ (30,682 ) $ 290,231 $ (12,564 ) $ 1,547,978 $ (43,246 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Unrealized Fair Unrealized Fair Unrealized (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 ) Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,407 $ (2 ) $ 1,342 $ (19 ) $ 2,749 $ (21 ) Non-bank qualified obligations of states and political subdivisions 118,237 (5,141 ) 79,222 (4,775 ) 197,459 (9,916 ) Mortgage-backed securities — — 7,847 (372 ) 7,847 (372 ) Total held to maturity securities $ 119,644 $ (5,143 ) $ 88,411 $ (5,166 ) $ 208,055 $ (10,309 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Unrealized Fair Unrealized Fair Value Unrealized (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 ) At June 30, 2018 , 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 because 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 securities before recovery of their amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at June 30, 2018 . The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED FAIR At June 30, 2018 (Dollars in Thousands) Due in one year or less $ 100 $ 100 Due after one year through five years 29,352 29,688 Due after five years through ten years 348,304 348,680 Due after ten years 993,211 971,174 1,370,967 1,349,642 Mortgage-backed securities 593,454 575,999 Common equities and mutual funds 1,347 1,896 Total available for sale securities $ 1,965,768 $ 1,927,537 AMORTIZED FAIR 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 Held To Maturity AMORTIZED FAIR At June 30, 2018 (Dollars in Thousands) Due in one year or less $ 2,395 $ 2,390 Due after one year through five years 18,829 18,761 Due after five years through ten years 20,335 20,175 Due after ten years 174,601 164,986 216,160 206,312 Mortgage-backed securities 8,218 7,846 Total held to maturity securities $ 224,378 $ 214,158 AMORTIZED FAIR 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 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and September 30, 2017 , unfunded loan commitments approximated $ 282.8 million and $233.2 million , respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract. The Company had two commitments totaling $4.1 million to purchase a security at June 30, 2018 and none at September 30, 2017. The Company had no commitments to sell securities at June 30, 2018 or September 30, 2017 . At June 30, 2018, Meta Capital, LLC, a wholly-owned subsidiary of MetaBank, had $0.5 million in outstanding investment commitments. 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. Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments. In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Legal Proceedings The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both Inter National Bank ("INB") and MetaBank. According to the Petition, NetSpend has informed INB that the depository accounts at INB for the NetSpend program supposedly contained $ 10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of its position. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs were wound down, there were two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4.0 million . The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. On February 9, 2018, the Bank’s AFS/IBEX division filed a lawsuit in the United States District Court for the Eastern District of New York captioned AFS/IBEX, a division of MetaBank v. Aegis Managing Agency Limited ("AMA"), Aegis Syndicate 1225 (together with AMA, the "Aegis defendants"), CRC Insurance Services, Inc. ("CRC"), and Transportation Underwriters, Inc. The suit was filed against commercial insurance underwriters and brokers that facilitated the issuance of commercial insurance policies to Red Hook Construction Group-II, LLC (“Red Hook”). The Bank’s position is that both CRC and Transportation Underwriters represented to the Bank that, upon cancellation of the insurance policies prior to their stated terms, any unearned premiums would be refunded. The Bank then provided insurance premium financing to Red Hook, and Red Hook executed a written premium finance agreement pursuant to which Red Hook assigned its rights to any unearned premiums to the Bank. After the policies were cancelled, the Aegis defendants failed to return the unearned insurance premiums totaling just over $1.6 million owed to the Bank under the insurance policies and the premium finance agreement. A discovery schedule has been established and is scheduled to proceed until January 31, 2019. The Bank is seeking recovery of all amounts to which it is entitled at law or equity and intends to vigorously pursue its claims against the defendants. From time to time, the Company or its subsidiaries are subject to certain legal proceedings and claims in the ordinary course of business. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position or its results of operations, legal proceedings are inherently uncertain and unfavorable resolution of some or all of these matters could, individually or in the aggregate, have a material adverse effect on the Company’s and its subsidiaries’ respective businesses, financial condition or results of operations. |
STOCK COMPENSATION
STOCK COMPENSATION | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
STOCK COMPENSATION | STOCK COMPENSATION The Company maintains the amended and restated Meta Financial Group, Inc. 2002 Omnibus Incentive Plan, as amended (the "2002 Omnibus Incentive Plan"), which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors. Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of the grant. The exercise price of options or fair value of non-vested (restricted) shares granted under the Company’s incentive plan is equal to the fair market value of the underlying stock at the grant date. The Company has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur. The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the nine months ended June 30, 2018 : Number Weighted Weighted Aggregate (Dollars in Thousands, Except Per Share Data) Options outstanding, September 30, 2017 75,757 $ 22.62 2.28 $ 4,225 Granted — — — — Exercised (23,770 ) 16.45 — 1,909 Forfeited or expired — — — — Options outstanding, June 30, 2018 51,987 $ 25.45 2.04 $ 3,741 Options exercisable, June 30, 2018 51,987 $ 25.45 2.04 $ 3,741 Number Weighted (Dollars in Thousands, Except Per Share Data) Nonvested (restricted) shares outstanding, September 30, 2017 304,526 $ 86.96 Granted 64,071 92.58 Vested (71,881 ) 86.17 Forfeited or expired (1,191 ) 79.06 Nonvested (restricted) shares outstanding, June 30, 2018 295,525 $ 88.40 During the first and second quarters of fiscal 2017, stock awards were granted to the Company's three highest paid executive officers in connection with their signing of employment agreements with the Company. These stock awards vest over eight years. At June 30, 2018 , stock-based compensation expense not yet recognized in income totaled $14.9 million , which is expected to be recognized over a weighted average remaining period of 3.63 years. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
SEGMENT INFORMATION | SEGMENT INFORMATION An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met. The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other . Meta Payments Systems ("MPS"), Refund Advantage, EPS Financial ("EPS"), SCS, and other tax businesses are reported in the Payments segment. Community Banking and the Company's other lending divisions are reported in the Banking segment . Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in Corporate Services/Other. The Company reclassified goodwill, intangibles, related intangible amortization expense, and certain acquisition related 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. The following tables present segment data for the Company for the three and nine months ended June 30, 2018 and 2017 , respectively. Payments Banking Corporate Total Three Months Ended June 30, 2018 Interest income $ 6,298 $ 19,085 $ 8,721 $ 34,104 Interest expense — 1,008 4,685 5,693 Net interest income 6,298 18,077 4,036 28,411 Provision for loan losses 1,189 4,126 — 5,315 Non-interest income 31,307 1,318 600 33,225 Non-interest expense 27,796 7,172 14,085 49,053 Income (loss) before income tax expense (benefit) 8,620 8,097 (9,449 ) 7,268 Total assets 190,437 1,623,715 2,355,007 4,169,159 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,641,838 241,572 638,223 3,521,633 Payments Banking Corporate Total Nine Months Ended June 30, 2018 Interest income $ 17,545 $ 52,615 $ 28,173 $ 98,333 Interest expense 1,645 2,821 11,855 16,321 Net interest income 15,900 49,794 16,318 82,012 Provision for loan losses 20,335 4,391 — 24,726 Non-interest income 155,082 4,044 786 159,912 Non-interest expense 99,592 20,723 41,277 161,592 Income (loss) before income tax expense (benefit) 51,055 28,724 (24,173 ) 55,606 Total assets 190,437 1,623,715 2,355,007 4,169,159 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,641,838 241,572 638,223 3,521,633 Payments Banking Corporate Total Three Months Ended June 30, 2017 Interest income $ 3,576 $ 14,092 $ 11,193 $ 28,861 Interest expense — 717 3,201 3,918 Net interest income 3,576 13,375 7,992 24,943 Provision for loan losses 352 888 — 1,240 Non-interest income 28,934 1,190 696 30,820 Non-interest expense 26,570 6,020 9,629 42,219 Income (loss) before income tax expense (benefit) 5,588 7,657 (941 ) 12,304 Total assets 196,717 1,245,840 2,577,136 4,019,693 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,443,332 224,886 485,001 3,153,219 Payments Banking Corporate Total Nine Months Ended June 30, 2017 Interest income $ 9,800 $ 37,654 $ 31,700 $ 79,154 Interest expense 503 1,932 7,977 10,412 Net interest income 9,297 35,722 23,723 68,742 Provision for loan losses 8,566 2,166 — 10,732 Non-interest income 138,420 3,648 271 142,339 Non-interest expense 97,927 18,114 29,877 145,918 Income (loss) before income tax expense (benefit) 41,224 19,090 (5,883 ) 54,431 Total assets 196,717 1,245,840 2,577,136 4,019,693 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,443,332 224,886 485,001 3,153,219 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company has been analyzing its data and has taken measures to ensure its systems capture 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. The Company has chosen a vendor for a software solution and has begun the implementation of the software. 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. The Company is expanding its initial assessment of the ASU due to the Crestmark acquisition and the Company still expects that the standard will be immaterial to its consolidated financial statements with the Company's leases. ASU No. 2014-09, Revenue Recognition - Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to provide guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing all income streams, including different prepaid card programs, so as to ascertain how revenues, including breakage, will be recognized under the standard. 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 fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and the Company expects the impact to its consolidated financial statements to be minimal. 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 will not have a material impact on the Company's consolidated financial statements. ASU 2017-12, Receivables - 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, while reducing earnings volatility due to ineffective hedges, and minimizing 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 fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company early adopted ASU 2017-12 as of October 1, 2017. The Company reclassified certain prepayable debt securities from HTM to AFS during the first quarter of fiscal 2018. See Note 5 to the Notes to Condensed Consolidated Financial Statements for additional information on the securities reclassified. ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities This ASU allows equity investments that do not have a readily determinable fair value to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The ASU also requires enhanced disclosure about those investments. The ASU simplifies the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. Entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet are required to use the exit price notion consistent with Topic 820, Fair Value Measuremen t. This update will be effective for annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2016-01 on its consolidated financial statements and does not deem impact will be material. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | |
FAIR VALUE MEASUREMENTS | FAIR VALUE MEASUREMENTS Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts. The fair value hierarchy is as follows: Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date. Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market. Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques. Securities Available for Sale and Held to Maturity . Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost. Fair value measurement is based upon quoted prices, if available. If quoted prices are not available, fair values are measured using an independent pricing service. For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments. The Company’s Level 1 securities include equity securities and mutual funds. Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds and corporate debt securities. The Company had no Level 3 securities at June 30, 2018 or September 30, 2017 . The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third party provider which utilizes several sources for valuing fixed-income securities. These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology, and the third party provider’s own matrix and desk pricing. The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value. Sources utilized by the third party provider include but are not limited to pricing models that vary based by asset class and include available trade, bid, and other market information. This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness. The following table summarizes the fair values of securities available for sale and held to maturity at June 30, 2018 and September 30, 2017 . 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 June 30, 2018 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 50,959 — 50,959 — — — — — Obligations of states and political subdivisions 14,370 — 14,370 — 3,826 — 3,826 — Non-bank qualified obligations of states and political subdivisions 1,083,474 — 1,083,474 — 202,486 — 202,486 — Asset-backed securities 200,839 — 200,839 — — — — — Mortgage-backed securities 575,999 — 575,999 — 7,846 — 7,846 — Total debt securities 1,925,641 — 1,925,641 — 214,158 — 214,158 — Common equities and mutual funds 1,896 1,896 — — — — — — Total securities $ 1,927,537 $ 1,896 $ 1,925,641 $ — $ 214,158 $ — $ 214,158 $ — 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 $ — Loans. The Company does not record loans at fair value on a recurring basis. However, if a loan is considered impaired, an allowance for loan losses is established. Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables . The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of June 30, 2018 and September 30, 2017 . Fair Value At June 30, 2018 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family residential mortgage loans $ 110 $ — $ — $ 110 Total Impaired Loans 110 — — 110 Foreclosed Assets, net $ 29,922 $ — $ — $ 29,922 Total $ 30,032 $ — $ — $ 30,032 Fair Value At September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at Fair Value at Valuation Unobservable Input Range of Inputs Impaired Loans, net $ 110 — Market approach Appraised values (1) 4.00 - 10.00% Foreclosed Assets, net $ 29,922 292 Market approach Appraised values (1) 4.00 - 10.00% (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs in a range of 4% to 10% . The following table discloses the Company’s estimated fair value amounts of its financial instruments as of the dates set forth below. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of June 30, 2018 and September 30, 2017 , 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 June 30, 2018 and September 30, 2017 . June 30, 2018 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 71,276 $ 71,276 $ 71,276 $ — $ — Securities available for sale 1,927,537 1,927,537 1,896 1,925,641 — Securities held to maturity 224,378 214,158 — 214,158 — Total securities 2,151,915 2,141,695 1,896 2,139,799 — Loans receivable: One to four family residential mortgage loans 214,754 213,285 — — 213,285 Commercial and multi-family real estate loans 716,495 706,662 — — 706,662 Agricultural real estate loans 35,475 34,821 — — 34,821 Consumer loans 258,158 274,871 — — 274,871 Commercial operating loans 46,069 45,505 — — 45,505 Agricultural operating loans 24,621 24,423 — — 24,423 CML insurance premium finance loans 303,603 302,898 — — 302,898 Total loans receivable 1,599,175 1,602,465 — — 1,602,465 Federal Home Loan Bank stock 7,446 7,446 — 7,446 — Accrued interest receivable 17,825 17,825 17,825 — — Financial liabilities Non-interest bearing demand deposits 2,637,987 2,637,987 2,637,987 — — Interest bearing demand deposits, savings, and money markets 205,536 205,536 205,536 — — Certificates of deposit 57,151 56,381 — 56,381 — Wholesale non-maturing deposits 74,061 74,061 74,061 — — Wholesale certificates of deposit 546,898 546,155 — 546,155 — Total deposits 3,521,633 3,520,120 2,917,584 602,536 — Federal funds purchased 24,000 24,000 24,000 — — Securities sold under agreements to repurchase 3,226 3,226 — 3,226 — Capital lease 1,892 1,892 — 1,892 — Trust preferred securities 10,310 10,464 — 10,464 — Subordinated debentures 73,442 75,188 — 75,188 — Accrued interest payable 3,705 3,705 3,705 — — September 30, 2017 Carrying Estimated 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 CML insurance 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 lease 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 — — The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at June 30, 2018 and September 30, 2017 . CASH AND CASH EQUIVALENTS The carrying amount of cash and short-term investments is assumed to approximate the fair value. SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost. Fair values for investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities. LOANS RECEIVABLE, NET The fair value of loans is estimated using a historical or replacement cost basis concept ( i.e., an entrance price concept). The fair value of loans was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers and for similar remaining maturities. When using the discounting method to determine fair value, homogeneous loans with similar terms and conditions were grouped together and discounted at a target rate at which similar loans would be made to borrowers at June 30, 2018 or September 30, 2017 . In addition, when computing the estimated fair value for all loans, allowances for loan losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component. FEDERAL HOME LOAN BANK (“FHLB”) STOCK The fair value of FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value. ACCRUED INTEREST RECEIVABLE The carrying amount of accrued interest receivable is assumed to approximate the fair value. DEPOSITS The carrying values of non-interest bearing checking deposits, interest bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value, since such deposits are immediately withdrawable without penalty. The fair value of time certificates of deposit and wholesale certificates of deposit were estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities. In accordance with ASC 825, Financial Instruments , no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangibles are not financial instruments as defined under ASC 825. ADVANCES FROM FHLB The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities. FEDERAL FUNDS PURCHASED The carrying amount of federal funds purchased is assumed to approximate the fair value. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND SUBORDINATED DEBENTURES The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings. ACCRUED INTEREST PAYABLE The carrying amount of accrued interest payable is assumed to approximate the fair value. LIMITATIONS Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument. Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time. Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision. Changes in assumptions as well as tax considerations could significantly affect the estimates. Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS The Company held a total of $ 98.7 million of goodwill as of June 30, 2018 . 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 of 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 Financial, LLC 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 Specialty Consumer Services LP on December 14, 2016. The goodwill associated with these transactions is deductible for tax purposes. The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2018 and 2017 were as follows: 2018 2017 Nine Months Ended June 30, (Dollars in Thousands) Goodwill Beginning balance $ 98,723 $ 36,928 Acquisitions during the period — 61,795 Write-offs during the period — — Ending balance $ 98,723 $ 98,723 Trademark (1) Non-Compete (2) Customer (3) All Others (4) Total Intangibles Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Acquisitions during the period — — — 85 85 Amortization during the period (477 ) (367 ) (4,548 ) (685 ) (6,077 ) Write-offs during the period — — — (88 ) (88 ) Balance as of June 30, 2018 $ 9,574 $ 1,415 $ 27,159 $ 7,950 $ 46,098 Gross carrying amount $ 10,990 $ 2,480 $ 57,810 $ 10,587 $ 81,867 Accumulated amortization (1,416 ) (1,065 ) (20,403 ) (2,020 ) (24,904 ) Accumulated impairment — — (10,248 ) (617 ) (10,865 ) Balance as of June 30, 2018 $ 9,574 $ 1,415 $ 27,159 $ 7,950 $ 46,098 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer (3) All Others (4) Total Intangibles Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Acquisitions during the period 5,500 2,180 31,770 6,922 46,372 Amortization during the period (442 ) (371 ) (9,084 ) (598 ) (10,495 ) Write-offs during the period — — — — — Balance as of June 30, 2017 $ 10,207 $ 1,936 $ 43,276 $ 9,379 $ 64,798 Gross carrying amount $ 10,990 $ 2,480 $ 57,810 $ 10,478 $ 81,758 Accumulated amortization (783 ) (544 ) (14,534 ) (1,099 ) (16,960 ) Balance as of June 30, 2017 $ 10,207 $ 1,936 $ 43,276 $ 9,379 $ 64,798 (1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining three months of fiscal 2018 and subsequent fiscal years is as follows: (Dollars in Thousands) Remaining in 2018 $ 1,632 2019 7,151 2020 5,753 2021 5,184 2022 4,262 2023 3,624 Thereafter 18,492 Total anticipated intangible amortization $ 46,098 The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There were no impairments to intangible assets during the three and nine months ended June 30, 2018 or 2017 . The annual goodwill impairment test for fiscal 2018 will be conducted at September 30, 2018 . |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAXES | INCOME TAXES Income tax expense for the nine months ended June 30, 2018 was $12.7 million , resulting in an effective tax rate of 22.9% , compared to $11.3 million , or an effective tax rate of 20.7% , for the nine months ended June 30, 2017 . The Tax Cuts and Jobs Act (the "Tax Act") was signed into law on December 22, 2017. The Tax Act has a significant impact on the U.S. corporate income tax regime by lowering the U.S. corporate tax rate from 35% to 21% effective for taxable years beginning on or after January 1, 2018 in addition to implementing numerous other changes. U.S. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted. As a result of the Tax Act, the Company remeasured its deferred tax assets and deferred tax liabilities during its fiscal 2018 first quarter, resulting in additional income tax expense of $3.6 million . As the Company’s fiscal year end ends on September 30, the statutory corporate rate for fiscal 2018 will be prorated to 24.53% . In December 2017, the Securities and Exchange Commission staff issued Staff Accounting Bulletin No. 118 ("SAB 118"), which provides guidance regarding how a company is to reflect provisional amounts when necessary information is not yet available, prepared or analyzed sufficiently to complete its accounting for the effect of the changes in the Tax Act. The income tax expense of $3.6 million recorded during the fiscal 2018 first quarter represented all then-known and estimable impacts of the Tax Act and is a provisional amount based on the Company’s current best estimate. This provisional amount incorporates assumptions made based upon the Company’s then-current interpretations of the Tax Act and may change as the Company receives additional clarification and implementation guidance, and as data becomes available allowing for a more accurate scheduling of the deferred tax assets and liabilities, including those related to items potentially impacted by the Tax Act such as fixed assets and employee compensation. Adjustments to this provisional amount through December 22, 2018 will be included in income from operations as an adjustment to tax expense in future periods. |
REGULATORY MATTERS
REGULATORY MATTERS | 9 Months Ended |
Jun. 30, 2018 | |
Banking and Thrift [Abstract] | |
REGULATORY MATTERS | REGULATORY MATTERS On January 5, 2015, the Federal Deposit Insurance Corporation (“FDIC”) published industry guidance in the form of Frequently Asked Questions (“FAQs”) with respect to the categorization of deposit liabilities as “brokered” deposits. On November 13, 2015, the FDIC issued for comment updated and annotated FAQs, and on June 30, 2016, the FDIC finalized the FAQs. The Company believes that the final FAQs do not materially impact the processes that it uses to identify, accept and report brokered deposits. On April 26, 2016, the FDIC issued a final rule to amend how small banks (less than $10 billion in assets that have been FDIC insured for at least five years) are assessed for deposit insurance (the "Final Rule"). The Final Rule imposes higher assessments for banks that the FDIC believes present higher risk profiles. The Final Rule became effective with the Bank's December 2016 assessment invoice, which the Company received in March 2017. Due to the Bank’s status as a "well-capitalized" institution under the FDIC's prompt corrective action regulations, and further with respect to the Bank’s financial condition in general, the Company does not at this time anticipate that either the FAQs or the Final Rule will have a material adverse impact on the Company’s business operations. However, should the Bank ever fail to be well-capitalized in the future, as a result of failing to meet the well-capitalized requirements, or the imposition of an individual minimum capital requirement or similar formal requirements, then, notwithstanding that the Bank has capital in excess of the well-capitalized minimum requirements, the Bank would be prohibited, absent waiver from the FDIC, from utilizing brokered deposits (i.e., may not accept, renew or rollover brokered deposits), which could produce serious adverse effects on the Company’s liquidity, and financial condition and results of operations. Similarly, should the Bank’s financial condition in general deteriorate, future FDIC assessments could have a material adverse effect on the Company. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2018 | |
Subsequent Events [Abstract] | |
SUBSEQUENT EVENTS | SUBSEQUENT EVENTS In mid-July, 2018, the Company entered into a first-out participation agreement in a highly secured, consumer receivable asset-based warehouse line of credit. The Company holds a senior position providing up to $65.0 million with the subordinate party contributing up to $100.0 million , thereby enhancing the Company’s position with significant subordination. As previously disclosed, on January 9, 2018, Meta and MetaBank, entered into an Agreement and Plan of Merger (the “merger agreement”), with Crestmark Bancorp, Inc., a Michigan corporation (“Crestmark”), and Crestmark Bank, a Michigan state-chartered bank and a wholly-owned subsidiary of Crestmark (“Crestmark Bank”). On August 1, 2018, pursuant to the merger agreement, upon the terms and subject to the conditions set forth therein, Crestmark merged with and into Meta, with Meta as the surviving entity (the “merger”), and, immediately thereafter, pursuant to the terms of a separate merger agreement between MetaBank and Crestmark Bank, Crestmark Bank merged with and into MetaBank, with MetaBank surviving as Meta’s wholly-owned subsidiary. Under the terms of the merger agreement, at the effective time of the merger, (i) each share of Crestmark common stock converted into the right to receive 2.65 shares of Meta common stock and (ii) each outstanding option to purchase Crestmark common stock was canceled and converted into the right to receive an amount in cash. The aggregate value of the acquisition, based on the closing price of Meta shares on July 31, 2018 of $89.45 , was $316.1 million . Effective as of the closing of the merger, W. David Tull, Crestmark’s Chairman and Chief Executive Officer, and Michael R. Kramer, a member at the law firm Dickinson Wright, PLLC, were appointed to the Board of Directors of Meta and MetaBank, and Mick Goik, President and Chief Operating Officer of Crestmark, was named Executive Vice President of MetaBank and President of the Meta Commercial Finance Division, which includes Crestmark. Crestmark will continue to operate from its headquarters in Troy, Michigan. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Jun. 30, 2018 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
New Accounting Pronouncements | Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company has been analyzing its data and has taken measures to ensure its systems capture 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. The Company has chosen a vendor for a software solution and has begun the implementation of the software. 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. The Company is expanding its initial assessment of the ASU due to the Crestmark acquisition and the Company still expects that the standard will be immaterial to its consolidated financial statements with the Company's leases. ASU No. 2014-09, Revenue Recognition - Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to provide guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing all income streams, including different prepaid card programs, so as to ascertain how revenues, including breakage, will be recognized under the standard. 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 fiscal years, and interim periods within those fiscal years, beginning after December 15, 2017, and the Company expects the impact to its consolidated financial statements to be minimal. 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 will not have a material impact on the Company's consolidated financial statements. ASU 2017-12, Receivables - 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, while reducing earnings volatility due to ineffective hedges, and minimizing 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 fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company early adopted ASU 2017-12 as of October 1, 2017. The Company reclassified certain prepayable debt securities from HTM to AFS during the first quarter of fiscal 2018. See Note 5 to the Notes to Condensed Consolidated Financial Statements for additional information on the securities reclassified. ASU 2016-01, Financial Instruments (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities This ASU allows equity investments that do not have a readily determinable fair value to be remeasured at fair value either upon the occurrence of an observable price change or upon identification of an impairment. The ASU also requires enhanced disclosure about those investments. The ASU simplifies the impairment assessment of equity investments without readily determinable fair values by requiring assessment for impairment qualitatively at each reporting period. Entities that are required to disclose the fair value of financial instruments measured at amortized cost on the balance sheet are required to use the exit price notion consistent with Topic 820, Fair Value Measuremen t. This update will be effective for annual and interim periods in fiscal years beginning after December 15, 2017, with early adoption permitted. The Company is currently evaluating the potential impact of ASU 2016-01 on its consolidated financial statements and does not deem impact will be material. |
CREDIT DISCLOSURES (Tables)
CREDIT DISCLOSURES (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Loans and Leases Receivable Disclosure [Abstract] | |
Schedule of Loans Receivable | Loans receivable at June 30, 2018 and September 30, 2017 were as follows: June 30, 2018 September 30, 2017 (Dollars in Thousands) 1-4 Family Real Estate $ 214,754 $ 196,706 Commercial and Multi-Family Real Estate 716,495 585,510 Agricultural Real Estate 35,475 61,800 Consumer 258,158 163,004 Commercial Operating 46,069 35,759 Agricultural Operating 24,621 33,594 Commercial Insurance Premium Finance 303,603 250,459 Total Loans Receivable 1,599,175 1,326,832 Allowance for Loan Losses (21,950 ) (7,534 ) Net Deferred Loan Origination Fees (1,881 ) (1,461 ) Total Loans Receivable, Net $ 1,575,344 $ 1,317,837 |
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans | Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and nine months ended June 30, 2018 and 2017 was as follows: 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2018 Allowance for loan losses: Beginning balance $ 883 $ 3,904 $ 146 $ 18,074 $ 1,716 $ 619 $ 746 $ 990 $ 27,078 Provision (recovery) for loan losses (231 ) 711 51 4,476 (26 ) (102 ) 304 132 5,315 Charge offs — — — (9,000 ) (1,507 ) — (243 ) — (10,750 ) Recoveries — — — — 1 207 99 — 307 Ending balance $ 652 $ 4,615 $ 197 $ 13,550 $ 184 $ 724 $ 906 $ 1,122 $ 21,950 Nine Months Ended June 30, 2018 Allowance for loan losses: Beginning balance $ 803 $ 2,670 $ 1,390 $ 6 $ 158 $ 1,184 $ 796 $ 527 $ 7,534 Provision (recovery) for loan (123 ) 1,945 (1,193 ) 22,174 1,480 (721 ) 569 595 24,726 Charge offs (31 ) — — (9,000 ) (1,507 ) — (711 ) — (11,249 ) Recoveries 3 — — 370 53 261 252 — 939 Ending balance $ 652 $ 4,615 $ 197 $ 13,550 $ 184 $ 724 $ 906 $ 1,122 $ 21,950 Ending balance: individually evaluated for impairment 25 — — — — — — — 25 Ending balance: collectively evaluated for impairment 627 4,615 197 13,550 184 724 906 1,122 21,925 Total $ 652 $ 4,615 $ 197 $ 13,550 $ 184 $ 724 $ 906 $ 1,122 $ 21,950 Loans: Ending balance: individually 229 409 — 47 — 2,135 — — 2,820 Ending balance: collectively 214,525 716,086 35,475 258,111 46,069 22,486 303,603 — 1,596,355 Total $ 214,754 $ 716,495 $ 35,475 $ 258,158 $ 46,069 $ 24,621 $ 303,603 $ — $ 1,599,175 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 296 $ 1,742 $ 1,524 $ 7,706 $ 767 $ 1,349 $ 597 $ 621 $ 14,602 Provision (recovery) for loan losses 510 386 (80 ) 142 249 (44 ) 187 (110 ) 1,240 Charge offs — — — (1 ) (799 ) — (94 ) — (894 ) Recoveries — — — — 5 — 15 — 20 Ending balance $ 806 $ 2,128 $ 1,444 $ 7,847 $ 222 $ 1,305 $ 705 $ 511 $ 14,968 Nine Months Ended June 30, 2017 Allowance for loan losses: Beginning balance $ 654 $ 2,198 $ 142 $ 51 $ 117 $ 1,332 $ 588 $ 553 $ 5,635 Provision (recovery) for loan 152 (70 ) 1,302 7,773 1,244 (39 ) 412 (42 ) 10,732 Charge offs — — — (1 ) (1,149 ) — (352 ) — (1,502 ) Recoveries — — — 24 10 12 57 — 103 Ending balance $ 806 $ 2,128 $ 1,444 $ 7,847 $ 222 $ 1,305 $ 705 $ 511 $ 14,968 Ending balance: individually — — — — — — — — — Ending balance: collectively 806 2,128 1,444 7,847 222 1,305 705 511 14,968 Total $ 806 $ 2,128 $ 1,444 $ 7,847 $ 222 $ 1,305 $ 705 $ 511 $ 14,968 Loans: Ending balance: individually 133 1,301 — — — — — — 1,434 Ending balance: collectively 190,598 492,558 62,521 172,151 39,076 35,471 231,587 — 1,223,962 Total $ 190,731 $ 493,859 $ 62,521 $ 172,151 $ 39,076 $ 35,471 $ 231,587 $ — $ 1,225,396 |
Asset Classification of Loans | The asset classification of loans at June 30, 2018 and September 30, 2017 were as follows: June 30, 2018 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance Total (Dollars in Thousands) Pass $ 214,176 $ 705,347 $ 27,456 $ 258,090 $ 46,069 $ 15,210 $ 302,022 $ 1,568,370 Watch 123 10,953 — 68 — 2,487 1,581 15,212 Special Mention 241 195 4,222 — — 535 — 5,193 Substandard 214 — 3,797 — — 6,389 — 10,400 Doubtful — — — — — — — — $ 214,754 $ 716,495 $ 35,475 $ 258,158 $ 46,069 $ 24,621 $ 303,603 $ 1,599,175 September 30, 2017 1-4 Family Commercial and Agricultural Consumer Commercial Agricultural CML Insurance 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 |
Past Due Loans | Past due loans at June 30, 2018 and September 30, 2017 were as follows: Accruing and Non-accruing Loans Non-performing Loans June 30, 2018 30-59 Days 60-89 Days > 89 Days Past Due Total Past Current Total Loans > 89 Days Past Due and Accruing Non-accrual balance Total (Dollars in Thousands) 1-4 Family Real Estate $ — $ — $ 214 $ 214 $ 214,540 214,754 79 $ 135 $ 214 Commercial and Multi-Family Real Estate — — — — 716,495 716,495 — — — Agricultural Real Estate — — — — 35,475 35,475 — — — Consumer 2,657 15,461 1,846 19,964 238,194 258,158 1,846 — 1,846 Commercial Operating — — — — 46,069 46,069 — — — Agricultural Operating — — — — 24,621 24,621 — — — CML Insurance Premium Finance 1,111 561 3,669 5,341 298,262 303,603 3,669 — 3,669 Total $ 3,768 $ 16,022 $ 5,729 $ 25,519 $ 1,573,656 1,599,175 5,594 $ 135 $ 5,729 Accruing and Non-accruing Loans Non-performing Loans September 30, 2017 30-59 Days 60-89 Days > 89 Days Past Due Total Past Current Total Loans > 89 Days Past Due and Accruing Non-accrual balance Total (Dollars in Thousands) 1-4 Family Real Estate $ 370 $ 79 $ — $ 449 $ 196,257 $ 196,706 — $ — $ — Commercial and Multi-Family Real Estate 295 — 390 685 584,825 585,510 — 685 685 Agricultural Real Estate — — 34,198 34,198 27,602 61,800 34,198 — 34,198 Consumer 2,512 558 1,406 4,476 158,528 163,004 1,406 — 1,406 Commercial Operating — — — — 35,759 35,759 — — — Agricultural Operating — — 97 97 33,497 33,594 97 — 97 CML Insurance Premium Finance 1,509 2,442 1,205 5,156 245,303 250,459 1,205 — 1,205 Total $ 4,686 $ 3,079 $ 37,296 $ 45,061 $ 1,281,771 $ 1,326,832 36,906 $ 685 $ 37,591 |
Impaired Loans | Impaired loans at June 30, 2018 and September 30, 2017 were as follows: Recorded Unpaid Principal Specific June 30, 2018 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 94 $ 94 $ — Commercial and Multi-Family Real Estate 409 409 — Consumer 47 47 — Agricultural Operating 2,135 2,135 — Total $ 2,685 $ 2,685 $ — Loans with a specific valuation allowance 1-4 Family Real Estate $ 135 $ 135 $ 25 Total $ 135 $ 135 $ 25 Recorded Unpaid Principal Specific 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 $ — The following table provides the average recorded investment in impaired loans for the three and nine month periods ended June 30, 2018 and 2017 . Three Months Ended June 30, Nine Months Ended June 30, 2018 2017 2018 2017 Average Average Average Average (Dollars in Thousands) 1-4 Family Real Estate $ 230 $ 210 $ 150 $ 197 Commercial and Multi-Family Real Estate 604 1,196 761 765 Agricultural Real Estate — 388 — 194 Consumer 112 — 74 — Commercial Operating — 201 — 269 Agricultural Operating 2,670 715 1,567 358 Total $ 3,616 $ 2,710 $ 2,552 $ 1,783 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Earnings Per Share [Abstract] | |
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS | A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share for the three and nine months ended June 30, 2018 and 2017 is presented below. Three Months Ended June 30, 2018 2017 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 6,792 $ 9,787 Weighted average common shares outstanding 9,699,824 9,349,989 Basic income per common share 0.70 1.05 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 6,792 $ 9,787 Weighted average common shares outstanding 9,699,824 9,349,989 Outstanding options - based upon the two-class method 39,836 60,320 Weighted average diluted common shares outstanding 9,739,660 9,410,309 Diluted income per common share 0.70 1.04 Nine Months Ended June 30, 2018 2017 (Dollars in Thousands, Except Share and Per Share Data) Basic income per common share: Net income attributable to Meta Financial Group, Inc. $ 42,898 $ 43,173 Weighted average common shares outstanding 9,681,103 9,208,867 Basic income per common share 4.43 4.69 Diluted income per common share: Net income attributable to Meta Financial Group, Inc. $ 42,898 $ 43,173 Weighted average common shares outstanding 9,681,103 9,208,867 Outstanding options - based upon the two-class method 38,892 60,524 Weighted average diluted common shares outstanding 9,719,995 9,269,391 Diluted income per common share 4.41 4.66 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |
Securities Available for Sale | The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at June 30, 2018 and September 30, 2017 are presented below. Available For Sale At June 30, 2018 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Small business administration securities 51,785 27 (853 ) 50,959 Obligations of states and political subdivisions 14,472 60 (162 ) 14,370 Non-bank qualified obligations of states and political subdivisions 1,105,310 2,594 (24,430 ) 1,083,474 Asset-backed securities 199,400 1,784 (345 ) 200,839 Mortgage-backed securities 593,454 — (17,455 ) 575,999 Total debt securities 1,964,421 4,465 (43,245 ) 1,925,641 Common equities and mutual funds 1,347 550 (1 ) 1,896 Total available for sale securities $ 1,965,768 $ 5,015 $ (43,246 ) $ 1,927,537 At September 30, 2017 AMORTIZED GROSS GROSS FAIR (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 |
Securities Held to Maturity | Held to Maturity At June 30, 2018 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 3,831 $ 16 $ (21 ) $ 3,826 Non-bank qualified obligations of states and political subdivisions 212,329 73 (9,916 ) 202,486 Mortgage-backed securities 8,218 — (372 ) 7,846 Total held to maturity securities $ 224,378 $ 89 $ (10,309 ) $ 214,158 At September 30, 2017 AMORTIZED GROSS GROSS FAIR (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 |
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position | Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2018 and September 30, 2017 , were as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Small business administration securities $ 47,646 $ (853 ) $ — $ — $ 47,646 $ (853 ) Obligations of states and political subdivisions 8,443 (162 ) — — 8,443 (162 ) Non-bank qualified obligations of states and political subdivisions 786,022 (23,032 ) 25,062 (1,398 ) 811,084 (24,430 ) Asset-backed securities 107,027 (345 ) — — 107,027 (345 ) Mortgage-backed securities 306,713 (6,289 ) 265,169 (11,166 ) 571,882 (17,455 ) Total debt securities 1,255,851 (30,681 ) 290,231 (12,564 ) 1,546,082 (43,245 ) Common equities and mutual funds 1,896 (1 ) — — 1,896 (1 ) Total available for sale securities $ 1,257,747 $ (30,682 ) $ 290,231 $ (12,564 ) $ 1,547,978 $ (43,246 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Unrealized Fair Unrealized Fair Unrealized (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 ) |
Schedule of Unrealized Loss on Investments | Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2018 Fair Unrealized Fair Unrealized Fair Unrealized (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,407 $ (2 ) $ 1,342 $ (19 ) $ 2,749 $ (21 ) Non-bank qualified obligations of states and political subdivisions 118,237 (5,141 ) 79,222 (4,775 ) 197,459 (9,916 ) Mortgage-backed securities — — 7,847 (372 ) 7,847 (372 ) Total held to maturity securities $ 119,644 $ (5,143 ) $ 88,411 $ (5,166 ) $ 208,055 $ (10,309 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2017 Fair Unrealized Fair Unrealized Fair Value Unrealized (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 ) |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities by contractual maturity as of the dates set forth below are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain housing related municipal securities, Small Business Administration and asset-backed securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED FAIR At June 30, 2018 (Dollars in Thousands) Due in one year or less $ 100 $ 100 Due after one year through five years 29,352 29,688 Due after five years through ten years 348,304 348,680 Due after ten years 993,211 971,174 1,370,967 1,349,642 Mortgage-backed securities 593,454 575,999 Common equities and mutual funds 1,347 1,896 Total available for sale securities $ 1,965,768 $ 1,927,537 AMORTIZED FAIR 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 Held To Maturity AMORTIZED FAIR At June 30, 2018 (Dollars in Thousands) Due in one year or less $ 2,395 $ 2,390 Due after one year through five years 18,829 18,761 Due after five years through ten years 20,335 20,175 Due after ten years 174,601 164,986 216,160 206,312 Mortgage-backed securities 8,218 7,846 Total held to maturity securities $ 224,378 $ 214,158 AMORTIZED FAIR 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 |
STOCK COMPENSATION (Tables)
STOCK COMPENSATION (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Activity of Options | The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under the 2002 Omnibus Incentive Plan for the nine months ended June 30, 2018 : Number Weighted Weighted Aggregate (Dollars in Thousands, Except Per Share Data) Options outstanding, September 30, 2017 75,757 $ 22.62 2.28 $ 4,225 Granted — — — — Exercised (23,770 ) 16.45 — 1,909 Forfeited or expired — — — — Options outstanding, June 30, 2018 51,987 $ 25.45 2.04 $ 3,741 Options exercisable, June 30, 2018 51,987 $ 25.45 2.04 $ 3,741 Number Weighted (Dollars in Thousands, Except Per Share Data) Nonvested (restricted) shares outstanding, September 30, 2017 304,526 $ 86.96 Granted 64,071 92.58 Vested (71,881 ) 86.17 Forfeited or expired (1,191 ) 79.06 Nonvested (restricted) shares outstanding, June 30, 2018 295,525 $ 88.40 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Segment Reporting [Abstract] | |
Segment Information of Entity | The following tables present segment data for the Company for the three and nine months ended June 30, 2018 and 2017 , respectively. Payments Banking Corporate Total Three Months Ended June 30, 2018 Interest income $ 6,298 $ 19,085 $ 8,721 $ 34,104 Interest expense — 1,008 4,685 5,693 Net interest income 6,298 18,077 4,036 28,411 Provision for loan losses 1,189 4,126 — 5,315 Non-interest income 31,307 1,318 600 33,225 Non-interest expense 27,796 7,172 14,085 49,053 Income (loss) before income tax expense (benefit) 8,620 8,097 (9,449 ) 7,268 Total assets 190,437 1,623,715 2,355,007 4,169,159 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,641,838 241,572 638,223 3,521,633 Payments Banking Corporate Total Nine Months Ended June 30, 2018 Interest income $ 17,545 $ 52,615 $ 28,173 $ 98,333 Interest expense 1,645 2,821 11,855 16,321 Net interest income 15,900 49,794 16,318 82,012 Provision for loan losses 20,335 4,391 — 24,726 Non-interest income 155,082 4,044 786 159,912 Non-interest expense 99,592 20,723 41,277 161,592 Income (loss) before income tax expense (benefit) 51,055 28,724 (24,173 ) 55,606 Total assets 190,437 1,623,715 2,355,007 4,169,159 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,641,838 241,572 638,223 3,521,633 Payments Banking Corporate Total Three Months Ended June 30, 2017 Interest income $ 3,576 $ 14,092 $ 11,193 $ 28,861 Interest expense — 717 3,201 3,918 Net interest income 3,576 13,375 7,992 24,943 Provision for loan losses 352 888 — 1,240 Non-interest income 28,934 1,190 696 30,820 Non-interest expense 26,570 6,020 9,629 42,219 Income (loss) before income tax expense (benefit) 5,588 7,657 (941 ) 12,304 Total assets 196,717 1,245,840 2,577,136 4,019,693 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,443,332 224,886 485,001 3,153,219 Payments Banking Corporate Total Nine Months Ended June 30, 2017 Interest income $ 9,800 $ 37,654 $ 31,700 $ 79,154 Interest expense 503 1,932 7,977 10,412 Net interest income 9,297 35,722 23,723 68,742 Provision for loan losses 8,566 2,166 — 10,732 Non-interest income 138,420 3,648 271 142,339 Non-interest expense 97,927 18,114 29,877 145,918 Income (loss) before income tax expense (benefit) 41,224 19,090 (5,883 ) 54,431 Total assets 196,717 1,245,840 2,577,136 4,019,693 Total goodwill 87,145 11,578 — 98,723 Total deposits 2,443,332 224,886 485,001 3,153,219 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
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 June 30, 2018 and September 30, 2017 . 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 June 30, 2018 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 50,959 — 50,959 — — — — — Obligations of states and political subdivisions 14,370 — 14,370 — 3,826 — 3,826 — Non-bank qualified obligations of states and political subdivisions 1,083,474 — 1,083,474 — 202,486 — 202,486 — Asset-backed securities 200,839 — 200,839 — — — — — Mortgage-backed securities 575,999 — 575,999 — 7,846 — 7,846 — Total debt securities 1,925,641 — 1,925,641 — 214,158 — 214,158 — Common equities and mutual funds 1,896 1,896 — — — — — — Total securities $ 1,927,537 $ 1,896 $ 1,925,641 $ — $ 214,158 $ — $ 214,158 $ — 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 $ — |
Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the assets of the Company that were measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of June 30, 2018 and September 30, 2017 . Fair Value At June 30, 2018 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net 1-4 family residential mortgage loans $ 110 $ — $ — $ 110 Total Impaired Loans 110 — — 110 Foreclosed Assets, net $ 29,922 $ — $ — $ 29,922 Total $ 30,032 $ — $ — $ 30,032 Fair Value At September 30, 2017 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Foreclosed Assets, net 292 — — 292 Total $ 292 $ — $ — $ 292 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at Fair Value at Valuation Unobservable Input Range of Inputs Impaired Loans, net $ 110 — Market approach Appraised values (1) 4.00 - 10.00% Foreclosed Assets, net $ 29,922 292 Market approach Appraised values (1) 4.00 - 10.00% (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimating selling costs in a range of 4% to 10% . |
Carrying Amount and Estimated Fair Value of Financial Instruments | The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at June 30, 2018 and September 30, 2017 . June 30, 2018 Carrying Estimated Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 71,276 $ 71,276 $ 71,276 $ — $ — Securities available for sale 1,927,537 1,927,537 1,896 1,925,641 — Securities held to maturity 224,378 214,158 — 214,158 — Total securities 2,151,915 2,141,695 1,896 2,139,799 — Loans receivable: One to four family residential mortgage loans 214,754 213,285 — — 213,285 Commercial and multi-family real estate loans 716,495 706,662 — — 706,662 Agricultural real estate loans 35,475 34,821 — — 34,821 Consumer loans 258,158 274,871 — — 274,871 Commercial operating loans 46,069 45,505 — — 45,505 Agricultural operating loans 24,621 24,423 — — 24,423 CML insurance premium finance loans 303,603 302,898 — — 302,898 Total loans receivable 1,599,175 1,602,465 — — 1,602,465 Federal Home Loan Bank stock 7,446 7,446 — 7,446 — Accrued interest receivable 17,825 17,825 17,825 — — Financial liabilities Non-interest bearing demand deposits 2,637,987 2,637,987 2,637,987 — — Interest bearing demand deposits, savings, and money markets 205,536 205,536 205,536 — — Certificates of deposit 57,151 56,381 — 56,381 — Wholesale non-maturing deposits 74,061 74,061 74,061 — — Wholesale certificates of deposit 546,898 546,155 — 546,155 — Total deposits 3,521,633 3,520,120 2,917,584 602,536 — Federal funds purchased 24,000 24,000 24,000 — — Securities sold under agreements to repurchase 3,226 3,226 — 3,226 — Capital lease 1,892 1,892 — 1,892 — Trust preferred securities 10,310 10,464 — 10,464 — Subordinated debentures 73,442 75,188 — 75,188 — Accrued interest payable 3,705 3,705 3,705 — — September 30, 2017 Carrying Estimated 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 CML insurance 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 lease 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 — — |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets and Goodwill | The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2018 and 2017 were as follows: 2018 2017 Nine Months Ended June 30, (Dollars in Thousands) Goodwill Beginning balance $ 98,723 $ 36,928 Acquisitions during the period — 61,795 Write-offs during the period — — Ending balance $ 98,723 $ 98,723 Trademark (1) Non-Compete (2) Customer (3) All Others (4) Total Intangibles Balance as of September 30, 2017 $ 10,051 $ 1,782 $ 31,707 $ 8,638 $ 52,178 Acquisitions during the period — — — 85 85 Amortization during the period (477 ) (367 ) (4,548 ) (685 ) (6,077 ) Write-offs during the period — — — (88 ) (88 ) Balance as of June 30, 2018 $ 9,574 $ 1,415 $ 27,159 $ 7,950 $ 46,098 Gross carrying amount $ 10,990 $ 2,480 $ 57,810 $ 10,587 $ 81,867 Accumulated amortization (1,416 ) (1,065 ) (20,403 ) (2,020 ) (24,904 ) Accumulated impairment — — (10,248 ) (617 ) (10,865 ) Balance as of June 30, 2018 $ 9,574 $ 1,415 $ 27,159 $ 7,950 $ 46,098 (1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3-5 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. Trademark (1) Non-Compete (2) Customer (3) All Others (4) Total Intangibles Balance as of September 30, 2016 $ 5,149 $ 127 $ 20,590 $ 3,055 $ 28,921 Acquisitions during the period 5,500 2,180 31,770 6,922 46,372 Amortization during the period (442 ) (371 ) (9,084 ) (598 ) (10,495 ) Write-offs during the period — — — — — Balance as of June 30, 2017 $ 10,207 $ 1,936 $ 43,276 $ 9,379 $ 64,798 Gross carrying amount $ 10,990 $ 2,480 $ 57,810 $ 10,478 $ 81,758 Accumulated amortization (783 ) (544 ) (14,534 ) (1,099 ) (16,960 ) Balance as of June 30, 2017 $ 10,207 $ 1,936 $ 43,276 $ 9,379 $ 64,798 (1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods. (2) Book amortization period of 3 years. Amortized using the straight line method. (3) Book amortization period of 10-30 years. Amortized using the accelerated method. (4) Book amortization period of 3-20 years. Amortized using the straight line method. |
Schedule of Future Amortization Expense | The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the remaining three months of fiscal 2018 and subsequent fiscal years is as follows: (Dollars in Thousands) Remaining in 2018 $ 1,632 2019 7,151 2020 5,753 2021 5,184 2022 4,262 2023 3,624 Thereafter 18,492 Total anticipated intangible amortization $ 46,098 |
CREDIT DISCLSOURES - Summary of
CREDIT DISCLSOURES - Summary of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | $ 1,599,175 | $ 1,326,832 | $ 1,225,396 |
Allowance for loan losses | (21,950) | (7,534) | |
Net Deferred Loan Origination Fees | (1,881) | (1,461) | |
Total Loans Receivable, Net | 1,575,344 | 1,317,837 | |
1-4 Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 214,754 | 196,706 | 190,731 |
Commercial and Multi-Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 716,495 | 585,510 | 493,859 |
Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 35,475 | 61,800 | 62,521 |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 258,158 | 163,004 | 172,151 |
Commercial Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 46,069 | 35,759 | 39,076 |
Agricultural Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | 24,621 | 33,594 | 35,471 |
Commercial Insurance Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total Loans Receivable | $ 303,603 | $ 250,459 | $ 231,587 |
CREDIT DISCLSOURES - Allowance
CREDIT DISCLSOURES - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 | |
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | $ 27,078 | $ 14,602 | $ 7,534 | $ 5,635 | |||
Provision (recovery) for loan losses | 5,315 | 1,240 | 24,726 | 10,732 | |||
Charge offs | (10,750) | (894) | (11,249) | (1,502) | |||
Recoveries | 307 | 20 | 939 | 103 | |||
Ending balance | 21,950 | 14,968 | 21,950 | 14,968 | |||
Ending balance: individually evaluated for impairment | $ 25 | $ 0 | |||||
Ending balance: collectively evaluated for impairment | 21,925 | 14,968 | |||||
Total | 27,078 | 14,602 | 7,534 | 5,635 | 21,950 | $ 7,534 | 14,968 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 2,820 | 1,434 | |||||
Ending balance: collectively evaluated for impairment | 1,596,355 | 1,223,962 | |||||
Total Loans Receivable | 1,599,175 | 1,326,832 | 1,225,396 | ||||
1-4 Family Real Estate [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 883 | 296 | 803 | 654 | |||
Provision (recovery) for loan losses | (231) | 510 | (123) | 152 | |||
Charge offs | 0 | 0 | (31) | 0 | |||
Recoveries | 0 | 0 | 3 | 0 | |||
Ending balance | 652 | 806 | 652 | 806 | |||
Ending balance: individually evaluated for impairment | 25 | 0 | |||||
Ending balance: collectively evaluated for impairment | 627 | 806 | |||||
Total | 883 | 296 | 803 | 654 | 652 | 803 | 806 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 229 | 133 | |||||
Ending balance: collectively evaluated for impairment | 214,525 | 190,598 | |||||
Total Loans Receivable | 214,754 | 196,706 | 190,731 | ||||
Commercial and Multi-Family Real Estate [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 3,904 | 1,742 | 2,670 | 2,198 | |||
Provision (recovery) for loan losses | 711 | 386 | 1,945 | (70) | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 4,615 | 2,128 | 4,615 | 2,128 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 4,615 | 2,128 | |||||
Total | 3,904 | 1,742 | 2,670 | 2,198 | 4,615 | 2,670 | 2,128 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 409 | 1,301 | |||||
Ending balance: collectively evaluated for impairment | 716,086 | 492,558 | |||||
Total Loans Receivable | 716,495 | 585,510 | 493,859 | ||||
Agricultural Real Estate [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 146 | 1,524 | 1,390 | 142 | |||
Provision (recovery) for loan losses | 51 | (80) | (1,193) | 1,302 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 197 | 1,444 | 197 | 1,444 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 197 | 1,444 | |||||
Total | 146 | 1,524 | 1,390 | 142 | 197 | 1,390 | 1,444 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 35,475 | 62,521 | |||||
Total Loans Receivable | 35,475 | 61,800 | 62,521 | ||||
Consumer [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 18,074 | 7,706 | 6 | 51 | |||
Provision (recovery) for loan losses | 4,476 | 142 | 22,174 | 7,773 | |||
Charge offs | (9,000) | (1) | (9,000) | (1) | |||
Recoveries | 0 | 0 | 370 | 24 | |||
Ending balance | 13,550 | 7,847 | 13,550 | 7,847 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 13,550 | 7,847 | |||||
Total | 18,074 | 7,706 | 6 | 51 | 13,550 | 6 | 7,847 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 47 | 0 | |||||
Ending balance: collectively evaluated for impairment | 258,111 | 172,151 | |||||
Total Loans Receivable | 258,158 | 163,004 | 172,151 | ||||
Commercial Operating [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 1,716 | 767 | 158 | 117 | |||
Provision (recovery) for loan losses | (26) | 249 | 1,480 | 1,244 | |||
Charge offs | (1,507) | (799) | (1,507) | (1,149) | |||
Recoveries | 1 | 5 | 53 | 10 | |||
Ending balance | 184 | 222 | 184 | 222 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 184 | 222 | |||||
Total | 1,716 | 767 | 158 | 117 | 184 | 158 | 222 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 46,069 | 39,076 | |||||
Total Loans Receivable | 46,069 | 35,759 | 39,076 | ||||
Agricultural Operating [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 619 | 1,349 | 1,184 | 1,332 | |||
Provision (recovery) for loan losses | (102) | (44) | (721) | (39) | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 207 | 0 | 261 | 12 | |||
Ending balance | 724 | 1,305 | 724 | 1,305 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 724 | 1,305 | |||||
Total | 619 | 1,349 | 1,184 | 1,332 | 724 | 1,184 | 1,305 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 2,135 | 0 | |||||
Ending balance: collectively evaluated for impairment | 22,486 | 35,471 | |||||
Total Loans Receivable | 24,621 | 33,594 | 35,471 | ||||
Commercial Insurance Premium Finance [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 746 | 597 | 796 | 588 | |||
Provision (recovery) for loan losses | 304 | 187 | 569 | 412 | |||
Charge offs | (243) | (94) | (711) | (352) | |||
Recoveries | 99 | 15 | 252 | 57 | |||
Ending balance | 906 | 705 | 906 | 705 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 906 | 705 | |||||
Total | 746 | 597 | 796 | 588 | 906 | 796 | 705 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 303,603 | 231,587 | |||||
Total Loans Receivable | 303,603 | 250,459 | 231,587 | ||||
Unallocated [Member] | |||||||
Allowance for Credit Losses [Roll Forward] | |||||||
Beginning balance | 990 | 621 | 527 | 553 | |||
Provision (recovery) for loan losses | 132 | (110) | 595 | (42) | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 1,122 | 511 | 1,122 | 511 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 1,122 | 511 | |||||
Total | $ 990 | $ 621 | $ 527 | $ 553 | 1,122 | $ 527 | 511 |
Loans: | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||||
Total Loans Receivable | $ 0 | $ 0 |
CREDIT DISCLSOURES - Asset Clas
CREDIT DISCLSOURES - Asset Classification of Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | $ 1,599,175 | $ 1,326,832 | $ 1,225,396 |
Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,568,370 | 1,265,560 | |
Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 15,212 | 17,272 | |
Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 5,193 | 3,387 | |
Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 10,400 | 40,613 | |
Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
1-4 Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 214,754 | 196,706 | 190,731 |
1-4 Family Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 214,176 | 195,838 | |
1-4 Family Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 123 | 525 | |
1-4 Family Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 241 | 247 | |
1-4 Family Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 214 | 96 | |
1-4 Family Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 716,495 | 585,510 | 493,859 |
Commercial and Multi-Family Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 705,347 | 574,730 | |
Commercial and Multi-Family Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 10,953 | 10,200 | |
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 195 | 201 | |
Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 379 | |
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 35,475 | 61,800 | 62,521 |
Agricultural Real Estate [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 27,456 | 27,376 | |
Agricultural Real Estate [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 2,006 | |
Agricultural Real Estate [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 4,222 | 2,939 | |
Agricultural Real Estate [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 3,797 | 29,479 | |
Agricultural Real Estate [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 258,158 | 163,004 | 172,151 |
Consumer [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 258,090 | 163,004 | |
Consumer [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 68 | 0 | |
Consumer [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 46,069 | 35,759 | 39,076 |
Commercial Operating [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 46,069 | 35,759 | |
Commercial Operating [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Agricultural Operating [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 24,621 | 33,594 | 35,471 |
Agricultural Operating [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 15,210 | 18,394 | |
Agricultural Operating [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 2,487 | 4,541 | |
Agricultural Operating [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 535 | 0 | |
Agricultural Operating [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 6,389 | 10,659 | |
Agricultural Operating [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Insurance Premium Finance [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 303,603 | 250,459 | $ 231,587 |
Commercial Insurance Premium Finance [Member] | Pass [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 302,022 | 250,459 | |
Commercial Insurance Premium Finance [Member] | Watch [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 1,581 | 0 | |
Commercial Insurance Premium Finance [Member] | Special Mention [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Insurance Premium Finance [Member] | Substandard [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Insurance Premium Finance [Member] | Doubtful [Member] | |||
Financing Receivable, Recorded Investment [Line Items] | |||
Total Loans Receivable | $ 0 | $ 0 |
CREDIT DISCLSOURES - Past Due L
CREDIT DISCLSOURES - Past Due Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 | Jun. 30, 2017 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 25,519 | $ 45,061 | |
Current | 1,573,656 | 1,281,771 | |
Total Loans Receivable | 1,599,175 | 1,326,832 | $ 1,225,396 |
Total Loans Receivable | 1,597,294 | 1,325,371 | |
89 Days Past Due and Accruing | 5,594 | 36,906 | |
Non-accrual balance | 135 | 685 | |
Total Nonperforming Loans | 5,729 | 37,591 | |
30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 3,768 | 4,686 | |
60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 16,022 | 3,079 | |
Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 5,729 | 37,296 | |
1-4 Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 214 | 449 | |
Current | 214,540 | 196,257 | |
Total Loans Receivable | 214,754 | 196,706 | 190,731 |
89 Days Past Due and Accruing | 79 | 0 | |
Non-accrual balance | 135 | 0 | |
Total Nonperforming Loans | 214 | 0 | |
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 370 | |
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 79 | |
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 214 | 0 | |
Commercial and Multi-Family Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 685 | |
Current | 716,495 | 584,825 | |
Total Loans Receivable | 716,495 | 585,510 | 493,859 |
89 Days Past Due and Accruing | 0 | 0 | |
Non-accrual balance | 0 | 685 | |
Total Nonperforming Loans | 0 | 685 | |
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 | 295 | |
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 | 390 | |
Agricultural Real Estate [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 34,198 | |
Current | 35,475 | 27,602 | |
Total Loans Receivable | 35,475 | 61,800 | 62,521 |
89 Days Past Due and Accruing | 0 | 34,198 | |
Non-accrual balance | 0 | 0 | |
Total Nonperforming Loans | 0 | 34,198 | |
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 | 0 | 34,198 | |
Consumer [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 19,964 | 4,476 | |
Current | 238,194 | 158,528 | |
Total Loans Receivable | 258,158 | 163,004 | 172,151 |
89 Days Past Due and Accruing | 1,846 | 1,406 | |
Non-accrual balance | 0 | 0 | |
Total Nonperforming Loans | 1,846 | 1,406 | |
Consumer [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 2,657 | 2,512 | |
Consumer [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 15,461 | 558 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,846 | 1,406 | |
Commercial Operating [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Current | 46,069 | 35,759 | |
Total Loans Receivable | 46,069 | 35,759 | 39,076 |
89 Days Past Due and Accruing | 0 | 0 | |
Non-accrual balance | 0 | 0 | |
Total Nonperforming Loans | 0 | 0 | |
Commercial Operating [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Commercial Operating [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Commercial Operating [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Operating [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 97 | |
Current | 24,621 | 33,497 | |
Total Loans Receivable | 24,621 | 33,594 | 35,471 |
89 Days Past Due and Accruing | 0 | 97 | |
Non-accrual balance | 0 | 0 | |
Total Nonperforming Loans | 0 | 97 | |
Agricultural Operating [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Operating [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 0 | |
Agricultural Operating [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 0 | 97 | |
Commercial Insurance Premium Finance [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 5,341 | 5,156 | |
Current | 298,262 | 245,303 | |
Total Loans Receivable | 303,603 | 250,459 | $ 231,587 |
89 Days Past Due and Accruing | 3,669 | 1,205 | |
Non-accrual balance | 0 | 0 | |
Total Nonperforming Loans | 3,669 | 1,205 | |
Commercial Insurance Premium Finance [Member] | 30-59 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 1,111 | 1,509 | |
Commercial Insurance Premium Finance [Member] | 60-89 Days Past Due [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | 561 | 2,442 | |
Commercial Insurance Premium Finance [Member] | Greater Than 90 Days [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due | $ 3,669 | $ 1,205 |
CREDIT DISCLSOURES - Impaired L
CREDIT DISCLSOURES - Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2017 | |
Loans without a specific valuation allowance | |||||
Recorded Balance | $ 2,685 | $ 2,685 | $ 1,181 | ||
Unpaid Principal Balance | 2,685 | 2,685 | 1,181 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded investment | 135 | 135 | |||
Unpaid principal balance | 135 | 135 | |||
Specific allowance | 25 | 25 | |||
Average Recorded Investment | 3,616 | $ 2,710 | 2,552 | $ 1,783 | |
1-4 Family Real Estate [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 94 | 94 | 72 | ||
Unpaid Principal Balance | 94 | 94 | 72 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded investment | 135 | 135 | |||
Unpaid principal balance | 135 | 135 | |||
Specific allowance | 25 | 25 | |||
Average Recorded Investment | 230 | 210 | 150 | 197 | |
Commercial and Multi-Family Real Estate [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 409 | 409 | 1,109 | ||
Unpaid Principal Balance | 409 | 409 | $ 1,109 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Average Recorded Investment | 604 | 1,196 | 761 | 765 | |
Agricultural Real Estate [Member] | |||||
Loans with a specific valuation allowance [Abstract] | |||||
Average Recorded Investment | 0 | 388 | 0 | 194 | |
Consumer [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 47 | 47 | |||
Unpaid Principal Balance | 47 | 47 | |||
Loans with a specific valuation allowance [Abstract] | |||||
Average Recorded Investment | 112 | 0 | 74 | 0 | |
Commercial Operating [Member] | |||||
Loans with a specific valuation allowance [Abstract] | |||||
Average Recorded Investment | 0 | 201 | 0 | 269 | |
Agricultural Operating [Member] | |||||
Loans without a specific valuation allowance | |||||
Recorded Balance | 2,135 | 2,135 | |||
Unpaid Principal Balance | 2,135 | 2,135 | |||
Loans with a specific valuation allowance [Abstract] | |||||
Average Recorded Investment | $ 2,670 | $ 715 | $ 1,567 | $ 358 |
CREDIT DISCLSOURES - Narrative
CREDIT DISCLSOURES - Narrative and Additional Information (Details) - USD ($) | 3 Months Ended | 9 Months Ended | |
Mar. 31, 2018 | Jun. 30, 2018 | Sep. 30, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of specific allowance for losses | 100.00% | ||
Maturity period of fixed rate loans | 30 years | ||
Annual cap of ARM loans | 2.00% | ||
Lifetime cap of ARM loans | 6.00% | ||
Loans and Leases Receivable, Net Amount | $ 1,575,344,000 | $ 1,317,837,000 | |
Increase finance receivables | (19,600,000) | ||
Total past due | $ 25,519,000 | 45,061,000 | |
1-4 Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of loans receivable | 30 years | ||
Total past due | $ 214,000 | 449,000 | |
Commercial and Multi-Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan to value ratio | 80.00% | ||
Maturity period of fixed rate loans | 20 years | ||
Total past due | $ 0 | 685,000 | |
Commercial Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | $ 0 | 0 | |
Agricultural Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of loans receivable | 1 year | ||
Increase finance receivables | $ 7,000,000 | ||
Total past due | $ 0 | 97,000 | |
Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Typical period of delinquency | 89 days | ||
Total past due | $ 0 | 34,198,000 | |
Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of fixed rate loans | 5 years | ||
Total past due | $ 19,964,000 | 4,476,000 | |
Commercial Insurance Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of delay or shortfall in payments after which a loan is evaluated for impairment | 210 days | ||
Typical period of delinquency | 210 days | ||
Total past due | $ 5,341,000 | 5,156,000 | |
Tax and Other National Lending [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of delay or shortfall in payments after which a loan is evaluated for impairment | 180 days | ||
Non-Premium Finance Loans [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of delay or shortfall in payments after which a loan is evaluated for impairment | 90 days | ||
Maximum [Member] | 1-4 Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loan to value ratio | 100.00% | ||
Exposure of the entity expressed in loan to value ratio | 80.00% | ||
Maximum [Member] | Commercial and Multi-Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of loans receivable | 1 year | ||
Percentage value for securing the loan | 80.00% | ||
Maximum [Member] | Commercial Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of loans receivable | 1 year | ||
Maximum [Member] | Agricultural Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of fixed rate loans | 7 years | ||
Maximum [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of fixed rate loans | 10 years | ||
Period of amortization, loans | 25 years | ||
Percentage value for securing the loan | 75.00% | ||
Maximum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage value for securing the loan | 90.00% | ||
Maximum [Member] | Automobile Loan [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of loans receivable | 60 months | ||
Percentage value for securing the loan | 80.00% | ||
Maximum [Member] | Commercial Insurance Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of down payment | 25.00% | ||
Period of finance | 10 months | ||
Period of conversion of collateral into cash | 210 days | ||
Minimum [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Maturity period of fixed rate loans | 5 years | ||
Period of amortization, loans | 20 years | ||
Minimum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Provsion for Loan and Lease Losses, Percent | 1.00% | ||
Minimum [Member] | Commercial Insurance Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Percentage of down payment | 20.00% | ||
Period of finance | 9 months | ||
Period of conversion of collateral into cash | 60 days | ||
Typical period of delinquency | 90 days | ||
Financing Receivables, Equal to Greater than 210 Days Past Due [Member] | Commercial Insurance Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | $ 1,600,000 | ||
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Increase finance receivables | (31,600,000) | ||
Total past due | 5,729,000 | 37,296,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | 1-4 Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 214,000 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial and Multi-Family Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 0 | 390,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 0 | 0 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Agricultural Operating [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 0 | 97,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Agricultural Real Estate [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 0 | 34,198,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 1,846,000 | 1,406,000 | |
Financing Receivables, Equal to Greater than 90 Days Past Due [Member] | Commercial Insurance Premium Finance [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Total past due | 3,669,000 | $ 1,205,000 | |
Closed-end Installment Loans [Member] | LIberty Lending [Member] | Maximum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Net Amount | 3,500 | ||
Period of finance | 13 months | ||
Closed-end Installment Loans [Member] | LIberty Lending [Member] | Minimum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans and Leases Receivable, Net Amount | $ 45,000 | ||
Period of finance | 60 months | ||
Closed-end Installment Loans [Member] | Health Credit Services [Member] | Maximum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of finance | 12 months | ||
Closed-end Installment Loans [Member] | Health Credit Services [Member] | Minimum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of finance | 84 months | ||
Revolving Credit Facility [Member] | Health Credit Services [Member] | Maximum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of finance | 6 months | ||
Revolving Credit Facility [Member] | Health Credit Services [Member] | Minimum [Member] | Consumer [Member] | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Period of finance | 60 months |
CREDIT DISCLSOURES - Troubled D
CREDIT DISCLSOURES - Troubled Debt Restructured Loans (Details) $ in Millions | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | Jun. 30, 2018USD ($)loan | Jun. 30, 2017USD ($)loan | |
Financing Receivable, Modifications [Line Items] | ||||
Loans modified in TDR | $ | $ 0 | $ 3.8 | $ 0 | |
Loans modified in TDR, subsequent default | 0 | 0 | 0 | 0 |
Agricultural Operating [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | 5 | |||
Consumer [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Number of contracts | 1 | |||
1-4 Family Real Estate [Member] | ||||
Financing Receivable, Modifications [Line Items] | ||||
Loans modified in TDR | $ | $ 0.1 | |||
Number of contracts | 1 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Mar. 31, 2018 | Sep. 30, 2017 | Mar. 31, 2017 | Sep. 30, 2016 | |
Receivables [Abstract] | ||||||||
Allowance for loan losses | $ 21,950 | $ 14,968 | $ 21,950 | $ 14,968 | $ 27,078 | $ 7,534 | $ 14,602 | $ 5,635 |
Additional expense related to tax services | 20,300 | |||||||
Provision for loan losses | $ 5,315 | $ 1,240 | 24,726 | 10,732 | ||||
Net charge offs (recoveries) | $ 10,300 | $ 1,400 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | |
Earnings Per Common Share, Basic and Diluted [Abstract] | ||||
Net income attributable to Meta Financial Group, Inc. | $ 6,792 | $ 9,787 | $ 42,898 | $ 43,173 |
Weighted average common shares outstanding (in shares) | 9,699,824 | 9,349,989 | 9,681,103 | 9,208,867 |
Basic income per common share (in dollars per share) | $ 0.70 | $ 1.05 | $ 4.43 | $ 4.69 |
Outstanding options - based upon the two-class method (in shares) | 39,836 | 60,320 | 38,892 | 60,524 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 9,739,660 | 9,410,309 | 9,719,995 | 9,269,391 |
Diluted income per common share (in dollars per share) | $ 0.70 | $ 1.04 | $ 4.41 | $ 4.66 |
SECURITIES - Narrative (Details
SECURITIES - Narrative (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Item Effected [Line Items] | ||
Investment securities transferred from HTM to AFS | $ (216,160) | $ (449,840) |
Mortgage-backed securities transferred from HTM to AFS | (8,218) | (113,689) |
AFS Investment securities transferred from HTM | 1,351,538 | 1,106,977 |
AFS Mortgage-backed securities transferred from HTM | 575,999 | $ 586,454 |
Accounting Standards Update 2017-12 [Member] | ||
Item Effected [Line Items] | ||
Investment securities transferred from HTM to AFS | 204,700 | |
Mortgage-backed securities transferred from HTM to AFS | 101,300 | |
AFS Investment securities transferred from HTM | 204,700 | |
AFS Mortgage-backed securities transferred from HTM | $ 101,300 |
SECURITIES - Available for Sale
SECURITIES - Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Available-for-sale debt securities [Abstract] | ||
Mortgage-backed securities available for sale | $ 575,999 | $ 586,454 |
Available-for-sale equity securities [Abstract] | ||
Investment securities available for sale | 1,351,538 | 1,106,977 |
Available-for-sale securities [Abstract] | ||
Amortized cost | 1,965,768 | 1,680,307 |
Gross unrealized gains | 5,015 | 19,884 |
Gross unrealized (losses) | (43,246) | (6,760) |
Total available for sale securities | 1,927,537 | 1,693,431 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,257,747 | 518,797 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (30,682) | (4,512) |
OVER 12 MONTHS, Fair Value | 290,231 | 106,140 |
OVER 12 MONTHS, Unrealized (Losses) | (12,564) | (2,248) |
TOTAL, Fair Value | 1,547,978 | 624,937 |
TOTAL, Unrealized (Losses) | (43,246) | (6,760) |
AMORTIZED COST | ||
Due in one year or less | 100 | 0 |
Due after one year through five years | 29,352 | 36,586 |
Due after five years through ten years | 348,304 | 347,831 |
Due after ten years | 993,211 | 705,963 |
Total | 1,370,967 | 1,090,380 |
Mortgage-backed securities | 593,454 | 588,918 |
Common equities and mutual funds | 1,347 | 1,009 |
Amortized cost | 1,965,768 | 1,680,307 |
FAIR VALUE | ||
Due in one year or less | 100 | 0 |
Due after one year through five years | 29,688 | 37,674 |
Due after five years through ten years | 348,680 | 358,198 |
Due after ten years | 971,174 | 709,660 |
Total | 1,349,642 | 1,105,532 |
Mortgage-backed securities | 575,999 | 586,454 |
Common equities and mutual funds | 1,896 | 1,445 |
Total available for sale securities | 1,927,537 | 1,693,431 |
Small Business Administration Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 51,785 | 57,046 |
Gross unrealized gains | 27 | 825 |
Gross unrealized (losses) | (853) | 0 |
Mortgage-backed securities available for sale | 50,959 | 57,871 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 47,646 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (853) | |
OVER 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Fair Value | 47,646 | |
TOTAL, Unrealized (Losses) | (853) | |
Obligations of States and Political Subdivisions [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 14,472 | |
Gross unrealized gains | 60 | |
Gross unrealized (losses) | (162) | |
Mortgage-backed securities available for sale | 14,370 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 8,443 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (162) | |
OVER 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Fair Value | 8,443 | |
TOTAL, Unrealized (Losses) | (162) | |
Non-bank Qualified Obligations of States and Political Subdivisions [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 1,105,310 | 938,883 |
Gross unrealized gains | 2,594 | 14,983 |
Gross unrealized (losses) | (24,430) | (3,037) |
Mortgage-backed securities available for sale | 1,083,474 | 950,829 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 786,022 | 280,900 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (23,032) | (2,887) |
OVER 12 MONTHS, Fair Value | 25,062 | 5,853 |
OVER 12 MONTHS, Unrealized (Losses) | (1,398) | (150) |
TOTAL, Fair Value | 811,084 | 286,753 |
TOTAL, Unrealized (Losses) | (24,430) | (3,037) |
Asset-backed Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 199,400 | 94,451 |
Gross unrealized gains | 1,784 | 2,381 |
Gross unrealized (losses) | (345) | 0 |
Mortgage-backed securities available for sale | 200,839 | 96,832 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 107,027 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (345) | |
OVER 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Fair Value | 107,027 | |
TOTAL, Unrealized (Losses) | (345) | |
Mortgage-backed Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 593,454 | 588,918 |
Gross unrealized gains | 0 | 1,259 |
Gross unrealized (losses) | (17,455) | (3,723) |
Mortgage-backed securities available for sale | 575,999 | 586,454 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 306,713 | 237,897 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (6,289) | (1,625) |
OVER 12 MONTHS, Fair Value | 265,169 | 100,287 |
OVER 12 MONTHS, Unrealized (Losses) | (11,166) | (2,098) |
TOTAL, Fair Value | 571,882 | 338,184 |
TOTAL, Unrealized (Losses) | (17,455) | (3,723) |
Debt Securities [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Amortized cost | 1,964,421 | 1,679,298 |
Gross unrealized gains | 4,465 | 19,448 |
Gross unrealized (losses) | (43,245) | (6,760) |
Mortgage-backed securities available for sale | 1,925,641 | 1,691,986 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,255,851 | 518,797 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (30,681) | (4,512) |
OVER 12 MONTHS, Fair Value | 290,231 | 106,140 |
OVER 12 MONTHS, Unrealized (Losses) | (12,564) | (2,248) |
TOTAL, Fair Value | 1,546,082 | 624,937 |
TOTAL, Unrealized (Losses) | (43,245) | (6,760) |
Common Equities and Mutual Funds [Member] | ||
Available-for-sale equity securities [Abstract] | ||
Amortized Cost | 1,347 | 1,009 |
Gross unrealized gains | 550 | 436 |
Gross unrealized (losses) | (1) | 0 |
Investment securities available for sale | 1,896 | $ 1,445 |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,896 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (1) | |
OVER 12 MONTHS, Fair Value | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | 0 | |
TOTAL, Fair Value | 1,896 | |
TOTAL, Unrealized (Losses) | $ (1) |
SECURITIES - Held to Maturity (
SECURITIES - Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | $ 224,378 | $ 563,529 |
Gross unrealized gains | 89 | 4,901 |
Gross unrealized (losses) | (10,309) | (4,245) |
Securities held to maturity | 214,158 | 564,185 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 119,644 | 315,838 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (5,143) | (4,022) |
OVER 12 MONTHS, Fair Value | 88,411 | 10,295 |
OVER 12 MONTHS, Unrealized (Losses) | (5,166) | (223) |
TOTAL, Fair Value | 208,055 | 326,133 |
TOTAL, Unrealized (Losses) | (10,309) | (4,245) |
AMORTIZED COST | ||
Due in one year or less | 2,395 | 1,483 |
Due after one year through five years | 18,829 | 17,926 |
Due after five years through ten years | 20,335 | 144,996 |
Due after ten years | 174,601 | 285,435 |
Total | 216,160 | 449,840 |
Mortgage-backed securities | 8,218 | 113,689 |
Amortized cost | 224,378 | 563,529 |
FAIR VALUE | ||
Due in one year or less | 2,390 | 1,480 |
Due after one year through five years | 18,761 | 18,160 |
Due after five years through ten years | 20,175 | 147,832 |
Due after ten years | 164,986 | 284,257 |
Total | 206,312 | 451,729 |
Mortgage-backed securities | 7,846 | 112,456 |
Total held to maturity securities | 214,158 | 564,185 |
Non-bank Qualified Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 212,329 | 430,593 |
Gross unrealized gains | 73 | 4,744 |
Gross unrealized (losses) | (9,916) | (2,976) |
Securities held to maturity | 202,486 | 432,361 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 118,237 | 202,018 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (5,141) | (2,783) |
OVER 12 MONTHS, Fair Value | 79,222 | 6,206 |
OVER 12 MONTHS, Unrealized (Losses) | (4,775) | (193) |
TOTAL, Fair Value | 197,459 | 208,224 |
TOTAL, Unrealized (Losses) | (9,916) | (2,976) |
AMORTIZED COST | ||
Amortized cost | 212,329 | 430,593 |
FAIR VALUE | ||
Total held to maturity securities | 202,486 | 432,361 |
Mortgage-backed Securities [Member] | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 8,218 | 113,689 |
Gross unrealized gains | 0 | 0 |
Gross unrealized (losses) | (372) | (1,233) |
Securities held to maturity | 7,846 | 112,456 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 0 | 112,456 |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | (1,233) |
OVER 12 MONTHS, Fair Value | 7,847 | 0 |
OVER 12 MONTHS, Unrealized (Losses) | (372) | 0 |
TOTAL, Fair Value | 7,847 | 112,456 |
TOTAL, Unrealized (Losses) | (372) | (1,233) |
AMORTIZED COST | ||
Amortized cost | 8,218 | 113,689 |
FAIR VALUE | ||
Total held to maturity securities | 7,846 | 112,456 |
Obligations of States and Political Subdivisions [Member] | ||
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Amortized cost | 3,831 | 19,247 |
Gross unrealized gains | 16 | 157 |
Gross unrealized (losses) | (21) | (36) |
Securities held to maturity | 3,826 | 19,368 |
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position [Abstract] | ||
LESS THAN 12 MONTHS, Fair Value | 1,407 | 1,364 |
LESS THAN 12 MONTHS, Unrealized (Losses) | (2) | (6) |
OVER 12 MONTHS, Fair Value | 1,342 | 4,089 |
OVER 12 MONTHS, Unrealized (Losses) | (19) | (30) |
TOTAL, Fair Value | 2,749 | 5,453 |
TOTAL, Unrealized (Losses) | (21) | (36) |
AMORTIZED COST | ||
Amortized cost | 3,831 | 19,247 |
FAIR VALUE | ||
Total held to maturity securities | $ 3,826 | $ 19,368 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) | 3 Months Ended | 9 Months Ended | ||
Dec. 31, 2014USD ($) | Jun. 30, 2018USD ($)commitment | Sep. 30, 2017USD ($) | Oct. 14, 2016USD ($) | |
Loss Contingencies [Line Items] | ||||
Unfunded loan commitments | $ 282,800,000 | $ 233,200,000 | ||
Number of investment commitments | commitment | 2 | |||
Securities, buy (sell) obligations | $ 4,100,000 | $ 0 | ||
Inter National Bank [Member] | ||||
Loss Contingencies [Line Items] | ||||
Amount of shortfall in depository account | $ 10,500,000 | |||
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member] | ||||
Loss Contingencies [Line Items] | ||||
Estimate of possible loss | $ 4,000,000 | |||
Meta Capital, LLC [Member] | ||||
Loss Contingencies [Line Items] | ||||
Investment Company, Committed Capital | $ 500,000 |
STOCK COMPENSATION (Details)
STOCK COMPENSATION (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | Jun. 30, 2017Officers | Sep. 30, 2017USD ($)$ / sharesshares | |
Number of Shares | ||||
Options outstanding, beginning of period (in shares) | shares | 75,757 | |||
Granted (in shares) | shares | 0 | |||
Exercised (in shares) | shares | (23,770) | |||
Forfeited or expired (in shares) | shares | 0 | |||
Options outstanding, end of period (in shares) | shares | 51,987 | 51,987 | 75,757 | |
Options exercisable, end of period (in shares) | shares | 51,987 | 51,987 | ||
Weighted Average Exercise Price | ||||
Options outstanding, beginning of period (in dollars per share) | $ / shares | $ 22.62 | |||
Granted (in dollars per share) | $ / shares | 0 | |||
Exercised (in dollars per share) | $ / shares | 16.45 | |||
Forfeited or expired (in dollars per share) | $ / shares | 0 | |||
Options outstanding, end of period (in dollars per share) | $ / shares | $ 25.45 | 25.45 | $ 22.62 | |
Options exercisable, end of period (in dollars per share) | $ / shares | $ 25.45 | $ 25.45 | ||
Weighted Average Remaining Contractual Term | ||||
Options outstanding | 2 years 15 days | 2 years 3 months 11 days | ||
Options exercisable | 2 years 15 days | |||
Aggregate Intrinsic Value | ||||
Options outstanding, beginning of period | $ | $ 4,225 | |||
Granted | $ | 0 | |||
Exercised | $ | 1,909 | |||
Forfeited or expired | $ | 0 | |||
Options outstanding, end of period | $ | $ 3,741 | 3,741 | $ 4,225 | |
Options exercisable, end of period | $ | $ 3,741 | $ 3,741 | ||
Number of Shares | ||||
Nonvested shares outstanding, beginning of period (in shares) | shares | 304,526 | |||
Granted (in shares) | shares | 64,071 | |||
Vested (in shares) | shares | (71,881) | |||
Forfeited or expired (in shares) | shares | (1,191) | |||
Nonvested shares outstanding, end of period (in shares) | shares | 295,525 | 295,525 | 304,526 | |
Weighted Average Fair Value at Grant | ||||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ / shares | $ 86.96 | |||
Granted (in dollars per share) | $ / shares | 92.58 | |||
Vested (in dollars per share) | $ / shares | 86.17 | |||
Forfeited or expired (in dollars per share) | $ / shares | 79.06 | |||
Nonvested shares outstanding, end of period (in dollars per share) | $ / shares | $ 88.40 | $ 88.40 | $ 86.96 | |
Number of Company's Named Executive Officers with stock awards | Officers | 3 | |||
Executive award vesting period | 8 years | |||
Stock based compensation expense not yet recognized in income | $ | $ 14,900 | $ 14,900 | ||
Weighted average remaining period for unrecognized stock based compensation | 3 years 7 months 17 days |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||
Jun. 30, 2018USD ($) | Jun. 30, 2017USD ($) | Jun. 30, 2018USD ($)segment | Jun. 30, 2017USD ($) | Sep. 30, 2017USD ($) | Sep. 30, 2016USD ($) | |
Segment Reporting Information [Line Items] | ||||||
Number of reportable segments | segment | 3 | |||||
Segment data [Abstract] | ||||||
Interest income | $ 34,104 | $ 28,861 | $ 98,333 | $ 79,154 | ||
Interest expense | 5,693 | 3,918 | 16,321 | 10,412 | ||
Net interest income | 28,411 | 24,943 | 82,012 | 68,742 | ||
Provision for loan losses | 5,315 | 1,240 | 24,726 | 10,732 | ||
Non-interest income | 33,225 | 30,820 | 159,912 | 142,339 | ||
Non-interest expense | 49,053 | 42,219 | 161,592 | 145,918 | ||
Income before income tax expense | 7,268 | 12,304 | 55,606 | 54,431 | ||
Total assets | 4,169,159 | 4,019,693 | 4,169,159 | 4,019,693 | $ 5,228,332 | |
Goodwill | 98,723 | 98,723 | 98,723 | 98,723 | 98,723 | $ 36,928 |
Total deposits | 3,521,633 | 3,153,219 | 3,521,633 | 3,153,219 | $ 3,223,424 | |
Payments [Member] | ||||||
Segment data [Abstract] | ||||||
Interest income | 6,298 | 3,576 | 17,545 | 9,800 | ||
Interest expense | 0 | 0 | 1,645 | 503 | ||
Net interest income | 6,298 | 3,576 | 15,900 | 9,297 | ||
Provision for loan losses | 1,189 | 352 | 20,335 | 8,566 | ||
Non-interest income | 31,307 | 28,934 | 155,082 | 138,420 | ||
Non-interest expense | 27,796 | 26,570 | 99,592 | 97,927 | ||
Income before income tax expense | 8,620 | 5,588 | 51,055 | 41,224 | ||
Total assets | 190,437 | 196,717 | 190,437 | 196,717 | ||
Goodwill | 87,145 | 87,145 | 87,145 | 87,145 | ||
Total deposits | 2,641,838 | 2,443,332 | 2,641,838 | 2,443,332 | ||
Banking [Member] | ||||||
Segment data [Abstract] | ||||||
Interest income | 19,085 | 14,092 | 52,615 | 37,654 | ||
Interest expense | 1,008 | 717 | 2,821 | 1,932 | ||
Net interest income | 18,077 | 13,375 | 49,794 | 35,722 | ||
Provision for loan losses | 4,126 | 888 | 4,391 | 2,166 | ||
Non-interest income | 1,318 | 1,190 | 4,044 | 3,648 | ||
Non-interest expense | 7,172 | 6,020 | 20,723 | 18,114 | ||
Income before income tax expense | 8,097 | 7,657 | 28,724 | 19,090 | ||
Total assets | 1,623,715 | 1,245,840 | 1,623,715 | 1,245,840 | ||
Goodwill | 11,578 | 11,578 | 11,578 | 11,578 | ||
Total deposits | 241,572 | 224,886 | 241,572 | 224,886 | ||
Corporate Services/Other [Member] | ||||||
Segment data [Abstract] | ||||||
Interest income | 8,721 | 11,193 | 28,173 | 31,700 | ||
Interest expense | 4,685 | 3,201 | 11,855 | 7,977 | ||
Net interest income | 4,036 | 7,992 | 16,318 | 23,723 | ||
Provision for loan losses | 0 | 0 | 0 | 0 | ||
Non-interest income | 600 | 696 | 786 | 271 | ||
Non-interest expense | 14,085 | 9,629 | 41,277 | 29,877 | ||
Income before income tax expense | (9,449) | (941) | (24,173) | (5,883) | ||
Total assets | 2,355,007 | 2,577,136 | 2,355,007 | 2,577,136 | ||
Goodwill | 0 | 0 | 0 | 0 | ||
Total deposits | $ 638,223 | $ 485,001 | $ 638,223 | $ 485,001 |
FAIR VALUE MEASUREMENTS - Asset
FAIR VALUE MEASUREMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Available-for-sale debt securities [Abstract] | ||
Total debt securities | $ 575,999 | $ 586,454 |
Total available for sale securities | 1,927,537 | 1,693,431 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Total held to maturity securities | 214,158 | 564,185 |
Level 1 [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Total available for sale securities | 1,896 | 1,445 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Total held to maturity securities | 0 | 0 |
Level 2 [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Total available for sale securities | 1,925,641 | 1,691,986 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Total held to maturity securities | 214,158 | 564,185 |
Level 3 [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Total available for sale securities | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Total held to maturity securities | 0 | 0 |
Recurring [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Small business administration securities | 50,959 | 57,871 |
Obligations of states and political subdivisions | 14,370 | 0 |
Non-bank qualified obligations of states and political subdivisions | 1,083,474 | 950,829 |
Asset-baked securities | 200,839 | 96,832 |
Mortgage-backed securities | 575,999 | 586,454 |
Total debt securities | 1,925,641 | 1,691,986 |
Common equities and mutual funds | 1,896 | 1,445 |
Total available for sale securities | 1,927,537 | 1,693,431 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 3,826 | 19,368 |
Non-bank qualified obligations of states and political subdivisions | 202,486 | 432,361 |
Asset-backed securities | 0 | 0 |
Mortgage-backed securities | 7,846 | 112,456 |
Total debt securities | 214,158 | 564,185 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 214,158 | 564,185 |
Recurring [Member] | Level 1 [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset-baked securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 1,896 | 1,445 |
Total available for sale securities | 1,896 | 1,445 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset-backed securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Small business administration securities | 50,959 | 57,871 |
Obligations of states and political subdivisions | 14,370 | 0 |
Non-bank qualified obligations of states and political subdivisions | 1,083,474 | 950,829 |
Asset-baked securities | 200,839 | 96,832 |
Mortgage-backed securities | 575,999 | 586,454 |
Total debt securities | 1,925,641 | 1,691,986 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 1,925,641 | 1,691,986 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 3,826 | 19,368 |
Non-bank qualified obligations of states and political subdivisions | 202,486 | 432,361 |
Asset-backed securities | 0 | 0 |
Mortgage-backed securities | 7,846 | 112,456 |
Total debt securities | 214,158 | 564,185 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 214,158 | 564,185 |
Recurring [Member] | Level 3 [Member] | ||
Available-for-sale debt securities [Abstract] | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset-baked securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 0 | 0 |
Debt Securities, Held-to-maturity, Fair Value to Amortized Cost [Abstract] | ||
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Asset-backed securities | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS - Quant
FAIR VALUE MEASUREMENTS - Quantitative Information (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2018 | Sep. 30, 2017 | |
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Foreclosed Assets, net | $ 29,922 | $ 292 |
Minimum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Range of estimated selling cost | 4.00% | |
Maximum [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Range of estimated selling cost | 10.00% | |
Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | $ 0 | 0 |
Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 1,602,465 | 1,318,402 |
Impaired Loans [Member] | Level 3 [Member] | Valuation, Market Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 110 | 0 |
1-4 Family Real Estate [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
1-4 Family Real Estate [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
1-4 Family Real Estate [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 213,285 | 196,970 |
Commercial Operating [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
Commercial Operating [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
Commercial Operating [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 45,505 | 35,723 |
Foreclosed Assets [Member] | Level 3 [Member] | Valuation, Market Approach [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 29,922 | 292 |
Nonrecurring [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 30,032 | 292 |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 30,032 | 292 |
Nonrecurring [Member] | Impaired Loans [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 110 | |
Nonrecurring [Member] | Impaired Loans [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | |
Nonrecurring [Member] | Impaired Loans [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | |
Nonrecurring [Member] | Impaired Loans [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 110 | |
Nonrecurring [Member] | 1-4 Family Real Estate [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 110 | |
Nonrecurring [Member] | 1-4 Family Real Estate [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | |
Nonrecurring [Member] | 1-4 Family Real Estate [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 0 | |
Nonrecurring [Member] | 1-4 Family Real Estate [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Fair value | 110 | |
Nonrecurring [Member] | Foreclosed Assets [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Foreclosed Assets, net | 29,922 | 292 |
Nonrecurring [Member] | Foreclosed Assets [Member] | Level 1 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Foreclosed Assets, net | 0 | |
Nonrecurring [Member] | Foreclosed Assets [Member] | Level 2 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Foreclosed Assets, net | 0 | |
Nonrecurring [Member] | Foreclosed Assets [Member] | Level 3 [Member] | ||
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31) | ||
Foreclosed Assets, net | $ 29,922 | $ 292 |
FAIR VALUE MEASUREMENTS - Balan
FAIR VALUE MEASUREMENTS - Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Jun. 30, 2018 | Sep. 30, 2017 |
Financial assets [Abstract] | ||
Securities available for sale | $ 1,927,537 | $ 1,693,431 |
Securities held to maturity | 214,158 | 564,185 |
Financial liabilities [Abstract] | ||
Long-term debt | 85,580 | 85,533 |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 71,276 | 1,267,586 |
Securities available for sale | 1,896 | 1,445 |
Securities held to maturity | 0 | 0 |
Total securities | 1,896 | 1,445 |
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 17,825 | 19,380 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,637,987 | 2,454,057 |
Interest bearing demand deposits, savings, and money markets | 205,536 | 169,557 |
Certificates of deposit | 0 | 0 |
Deposits, Wholesale, Non-Maturing | 74,061 | 18,245 |
Deposits, Wholesale, Certificates of Deposit | 0 | 0 |
Total deposits | 2,917,584 | 2,641,859 |
Advances from Federal Home Loan Bank | 0 | |
Federal Funds Purchased | 24,000 | |
Federal fund purchased | 987,000 | |
Securities sold under agreements to repurchase | 0 | 0 |
Long-term debt | 0 | 0 |
Trust Preferred Securities | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 3,705 | 2,280 |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,925,641 | 1,691,986 |
Securities held to maturity | 214,158 | 564,185 |
Total securities | 2,139,799 | 2,256,171 |
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 7,446 | 61,123 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 56,381 | 123,094 |
Deposits, Wholesale, Non-Maturing | 0 | 0 |
Deposits, Wholesale, Certificates of Deposit | 546,155 | 457,509 |
Total deposits | 602,536 | 580,603 |
Advances from Federal Home Loan Bank | 415,003 | |
Federal Funds Purchased | 0 | |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 3,226 | 2,472 |
Long-term debt | 1,892 | 1,938 |
Trust Preferred Securities | 10,464 | 10,447 |
Subordinated debentures | 75,188 | 76,500 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Total securities | 0 | 0 |
Loans receivable [Abstract] | ||
Total loans receivable | 1,602,465 | 1,318,402 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 0 | 0 |
Deposits, Wholesale, Non-Maturing | 0 | 0 |
Deposits, Wholesale, Certificates of Deposit | 0 | 0 |
Total deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | |
Federal Funds Purchased | 0 | |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 0 | 0 |
Long-term debt | 0 | 0 |
Trust Preferred Securities | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 71,276 | 1,267,586 |
Securities available for sale | 1,927,537 | 1,693,431 |
Securities held to maturity | 224,378 | 563,529 |
Total securities | 2,151,915 | 2,256,960 |
Loans receivable [Abstract] | ||
Total loans receivable | 1,599,175 | 1,326,832 |
Federal Home Loan Bank stock | 7,446 | 61,123 |
Accrued interest receivable | 17,825 | 19,380 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,637,987 | 2,454,057 |
Interest bearing demand deposits, savings, and money markets | 205,536 | 169,557 |
Certificates of deposit | 57,151 | 123,637 |
Deposits, Wholesale, Non-Maturing | 74,061 | 18,245 |
Deposits, Wholesale, Certificates of Deposit | 546,898 | 457,928 |
Total deposits | 3,521,633 | 3,223,424 |
Advances from Federal Home Loan Bank | 415,000 | |
Federal Funds Purchased | 24,000 | |
Federal fund purchased | 987,000 | |
Securities sold under agreements to repurchase | 3,226 | 2,472 |
Long-term debt | 1,892 | 1,938 |
Trust Preferred Securities | 10,310 | 10,310 |
Subordinated debentures | 73,442 | 73,347 |
Accrued interest payable | 3,705 | 2,280 |
Estimated Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 71,276 | 1,267,586 |
Securities available for sale | 1,927,537 | 1,693,431 |
Securities held to maturity | 214,158 | 564,185 |
Total securities | 2,141,695 | 2,257,616 |
Loans receivable [Abstract] | ||
Total loans receivable | 1,602,465 | 1,318,402 |
Federal Home Loan Bank stock | 7,446 | 61,123 |
Accrued interest receivable | 17,825 | 19,380 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 2,637,987 | 2,454,057 |
Interest bearing demand deposits, savings, and money markets | 205,536 | 169,557 |
Certificates of deposit | 56,381 | 123,094 |
Deposits, Wholesale, Non-Maturing | 74,061 | 18,245 |
Deposits, Wholesale, Certificates of Deposit | 546,155 | 457,509 |
Total deposits | 3,520,120 | 3,222,462 |
Advances from Federal Home Loan Bank | 415,003 | |
Federal Funds Purchased | 24,000 | |
Federal fund purchased | 987,000 | |
Securities sold under agreements to repurchase | 3,226 | 2,472 |
Long-term debt | 1,892 | 1,938 |
Trust Preferred Securities | 10,464 | 10,447 |
Subordinated debentures | 75,188 | 76,500 |
Accrued interest payable | 3,705 | 2,280 |
1-4 Family Real Estate [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
1-4 Family Real Estate [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
1-4 Family Real Estate [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 213,285 | 196,970 |
1-4 Family Real Estate [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 214,754 | 196,706 |
1-4 Family Real Estate [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 213,285 | 196,970 |
Commercial and Multi-family Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial and Multi-family Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial and Multi-family Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 706,662 | 576,330 |
Commercial and Multi-family Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 716,495 | 585,510 |
Commercial and Multi-family Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 706,662 | 576,330 |
Agricultural Real Estate [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 34,821 | 61,584 |
Agricultural Real Estate [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 35,475 | 61,800 |
Agricultural Real Estate [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 34,821 | 61,584 |
Consumer [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Consumer [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Consumer [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 274,871 | 163,961 |
Consumer [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 258,158 | 163,004 |
Consumer [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 274,871 | 163,961 |
Commercial Operating [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Operating [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Operating [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 45,505 | 35,723 |
Commercial Operating [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 46,069 | 35,759 |
Commercial Operating [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 45,505 | 35,723 |
Agricultural Operating [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 24,423 | 32,870 |
Agricultural Operating [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 24,621 | 33,594 |
Agricultural Operating [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 24,423 | 32,870 |
Commercial Insurance Premium Finance [Member] | Level 1 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Insurance Premium Finance [Member] | Level 2 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Insurance Premium Finance [Member] | Level 3 [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 302,898 | 250,964 |
Commercial Insurance Premium Finance [Member] | Carrying Amount [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | 303,603 | 250,459 |
Commercial Insurance Premium Finance [Member] | Estimated Fair Value [Member] | ||
Loans receivable [Abstract] | ||
Total loans receivable | $ 302,898 | $ 250,964 |
GOODWILL AND INTANGIBLE ASSET50
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||||||||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Dec. 14, 2016 | Nov. 01, 2016 | Sep. 08, 2015 | Dec. 02, 2014 | |
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 98,723 | $ 98,723 | $ 98,723 | $ 36,928 | $ 98,723 | $ 98,723 | ||||
Goodwill [Roll Forward] | ||||||||||
Balance, beginning of period | 98,723 | 36,928 | ||||||||
Acquisitions during the period | 0 | 61,795 | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 98,723 | 98,723 | 98,723 | 98,723 | ||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 52,178 | 28,921 | ||||||||
Acquisitions during the period | 85 | 46,372 | ||||||||
Amortization during the period | (6,077) | (10,495) | ||||||||
Write-offs during the period | (88) | 0 | ||||||||
Balance, end of period | 46,098 | 64,798 | 46,098 | 64,798 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Gross carrying amount | 81,867 | 81,758 | ||||||||
Accumulated amortization | (24,904) | (16,960) | ||||||||
Accumulated impairment | (10,865) | |||||||||
Total anticipated intangible amortization | 46,098 | 64,798 | 52,178 | 28,921 | 46,098 | 64,798 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Remaining in 2018 | 1,632 | |||||||||
2,019 | 7,151 | |||||||||
2,020 | 5,753 | |||||||||
2,021 | 5,184 | |||||||||
2,022 | 4,262 | |||||||||
2,023 | 3,624 | |||||||||
Thereafter | 18,492 | |||||||||
Total anticipated intangible amortization | 46,098 | 64,798 | 52,178 | 28,921 | 46,098 | 64,798 | ||||
Impairment of intangible assets | 0 | 0 | 0 | 0 | ||||||
AFS/IBEX Financial Services Inc [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 11,600 | |||||||||
Refund Advantage Financial Services Inc [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Goodwill | $ 31,400 | $ 30,400 | $ 25,400 | |||||||
Trademark [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 10,051 | 5,149 | ||||||||
Acquisitions during the period | 0 | 5,500 | ||||||||
Amortization during the period | (477) | (442) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | 9,574 | 10,207 | 9,574 | 10,207 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Gross carrying amount | 10,990 | 10,990 | ||||||||
Accumulated amortization | (1,416) | (783) | ||||||||
Accumulated impairment | 0 | |||||||||
Total anticipated intangible amortization | 9,574 | 10,207 | 10,051 | 5,149 | 9,574 | 10,207 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 9,574 | 10,207 | 10,051 | 5,149 | 9,574 | 10,207 | ||||
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 5 years | |||||||||
Trademark [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 15 years | |||||||||
Non-Compete [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 1,782 | 127 | ||||||||
Acquisitions during the period | 0 | 2,180 | ||||||||
Amortization during the period | (367) | (371) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | $ 1,415 | 1,936 | 1,415 | 1,936 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Gross carrying amount | 2,480 | 2,480 | ||||||||
Accumulated amortization | (1,065) | (544) | ||||||||
Accumulated impairment | 0 | |||||||||
Total anticipated intangible amortization | 1,415 | 1,936 | 1,782 | 127 | 1,415 | 1,936 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 1,415 | 1,936 | 1,782 | 127 | 1,415 | 1,936 | ||||
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 3 years | |||||||||
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 5 years | |||||||||
Customer Relationships [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 31,707 | 20,590 | ||||||||
Acquisitions during the period | 0 | 31,770 | ||||||||
Amortization during the period | (4,548) | (9,084) | ||||||||
Write-offs during the period | 0 | 0 | ||||||||
Balance, end of period | $ 27,159 | 43,276 | 27,159 | 43,276 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Gross carrying amount | 57,810 | 57,810 | ||||||||
Accumulated amortization | (20,403) | (14,534) | ||||||||
Accumulated impairment | (10,248) | |||||||||
Total anticipated intangible amortization | 27,159 | 43,276 | 31,707 | 20,590 | 27,159 | 43,276 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 27,159 | 43,276 | 31,707 | 20,590 | 27,159 | 43,276 | ||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 10 years | |||||||||
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 30 years | |||||||||
All Others [Member] | ||||||||||
Intangible Assets [Roll Forward] | ||||||||||
Balance, beginning of period | 8,638 | 3,055 | ||||||||
Acquisitions during the period | 85 | 6,922 | ||||||||
Amortization during the period | (685) | (598) | ||||||||
Write-offs during the period | (88) | 0 | ||||||||
Balance, end of period | $ 7,950 | 9,379 | 7,950 | 9,379 | ||||||
Amortizable intangible assets [Abstract] | ||||||||||
Gross carrying amount | 10,587 | 10,478 | ||||||||
Accumulated amortization | (2,020) | (1,099) | ||||||||
Accumulated impairment | (617) | |||||||||
Total anticipated intangible amortization | 7,950 | 9,379 | 8,638 | 3,055 | 7,950 | 9,379 | ||||
Finite-Lived Intangible Assets, Net, Amortization Expense, Fiscal Year Maturity [Abstract] | ||||||||||
Total anticipated intangible amortization | $ 7,950 | $ 9,379 | $ 8,638 | $ 3,055 | $ 7,950 | $ 9,379 | ||||
All Others [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 3 years | |||||||||
All Others [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member] | ||||||||||
Finite-Lived Intangible Assets [Line Items] | ||||||||||
Useful life | 20 years |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | 12 Months Ended | ||
Jun. 30, 2018 | Jun. 30, 2017 | Jun. 30, 2018 | Jun. 30, 2017 | Sep. 30, 2018 | |
Income Tax Contingency [Line Items] | |||||
Income tax expense | $ 476 | $ 2,517 | $ 12,708 | $ 11,258 | |
Effective tax rate, percent | 22.90% | 20.70% | |||
Tax Cuts and Jobs Act of 2017, change in tax rate, income tax expense (benefit) | $ 3,600 | ||||
Forecast | |||||
Income Tax Contingency [Line Items] | |||||
Federal statutory prorated rate, percent | 24.53% |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Subsequent Event [Member] - USD ($) $ / shares in Units, $ in Millions | Aug. 01, 2018 | Jul. 15, 2018 |
Crestmark [Member] | ||
Subsequent Event [Line Items] | ||
Entity shares issued per acquiree share (in shares) | 2.65 | |
Share price (in dollars per share) | $ 89.45 | |
Consideration transferred | $ 316.1 | |
Commitments to Extend Credit [Member] | ||
Subsequent Event [Line Items] | ||
Long-term Line of Credit | $ 65 | |
Commitments to Extend Credit [Member] | Subordinated Party Contributor [Member] | ||
Subsequent Event [Line Items] | ||
Long-term Line of Credit | $ 100 |