Document and Entity Information
Document and Entity Information - shares | 9 Months Ended | |
Jun. 30, 2015 | Aug. 03, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | META FINANCIAL GROUP INC | |
Entity Central Index Key | 907,471 | |
Current Fiscal Year End Date | --09-30 | |
Entity Well-known Seasoned Issuer | No | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 6,948,391 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q3 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
ASSETS | ||
Cash and cash equivalents | $ 20,405 | $ 29,832 |
Investment securities available for sale | 562,810 | 482,346 |
Mortgage-backed securities available for sale | 596,976 | 657,870 |
Investment securities held to maturity | 262,578 | 212,899 |
Mortgage-backed securities held to maturity | 69,057 | 70,034 |
Loans receivable - net of allowance for loan losses of $6,232 at June 30, 2015 and $5,397 at September 30, 2014 | 651,530 | 493,007 |
Federal Home Loan Bank Stock, at cost | 23,850 | 21,245 |
Accrued interest receivable | 14,235 | 11,222 |
Insurance receivable | 414 | 269 |
Premises, furniture, and equipment, net | 17,420 | 16,462 |
Bank-owned life insurance | 46,322 | 35,469 |
Foreclosed real estate and repossessed assets | 54 | 15 |
Goodwill | 11,578 | 0 |
Intangible assets | 10,093 | 2,588 |
Prepaid assets | 7,712 | 9,495 |
Deferred taxes | 10,060 | 6,591 |
MPS accounts receivable | 4,822 | 3,935 |
Other assets | 67 | 752 |
Total assets | 2,309,983 | 2,054,031 |
LIABILITIES | ||
Non-interest-bearing checking | 1,321,213 | 1,126,715 |
Interest-bearing checking | 37,832 | 37,188 |
Savings deposits | 36,481 | 27,610 |
Money market deposits | 38,718 | 40,475 |
Time certificates of deposit | 78,963 | 134,553 |
Total deposits | 1,513,207 | 1,366,541 |
Advances from Federal Home Loan Bank | 7,000 | 7,000 |
Federal funds purchased | 526,000 | 470,000 |
Securities sold under agreements to repurchase | 13,278 | 10,411 |
Subordinated debentures | 10,310 | 10,310 |
Accrued interest payable | 279 | 318 |
Contingent liability | 331 | 331 |
Accrued expenses and other liabilities | 30,308 | 14,318 |
Total liabilities | 2,100,713 | 1,879,229 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at June 30, 2015 and September 30, 2014, respectively | 0 | 0 |
Common stock, $.01 par value; 10,000,000 shares authorized, 6,966,700 and 6,213,979 shares issued, 6,946,450 and 6,169,604 shares outstanding at June 30, 2015 and September 30, 2014, respectively | 70 | 62 |
Additional paid-in capital | 120,273 | 95,079 |
Retained earnings | 94,625 | 83,797 |
Accumulated other comprehensive income (loss) | (5,388) | (3,409) |
Treasury stock, 20,250 and 44,375 common shares, at cost, at June 30, 2015 and September 30, 2014, respectively | (310) | (727) |
Total stockholders' equity | 209,270 | 174,802 |
Total liabilities and stockholders' equity | $ 2,309,983 | $ 2,054,031 |
Condensed Consolidated Stateme3
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
ASSETS | ||
Loans receivable, allowance for loan losses | $ 6,232 | $ 5,397 |
STOCKHOLDERS' EQUITY | ||
Preferred stock, shares authorized (in shares) | 3,000,000 | 3,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.01 | $ 0.01 |
Common stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Common stock, shares issued (in shares) | 6,966,700 | 6,213,979 |
Common stock, shares outstanding (in shares) | 6,946,450 | 6,169,604 |
Treasury stock (in shares) | 20,250 | 44,375 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Operations (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest and dividend income: | ||||
Loans receivable, including fees | $ 7,528 | $ 5,062 | $ 21,561 | $ 14,283 |
Mortgage-backed securities | 3,055 | 3,898 | 10,798 | 11,506 |
Other investments | 4,671 | 3,606 | 12,885 | 10,001 |
Total interest and dividend income | 15,254 | 12,566 | 45,244 | 35,790 |
Interest expense: | ||||
Deposits | 159 | 232 | 563 | 726 |
FHLB advances and other borrowings | 434 | 406 | 1,164 | 1,105 |
Total interest expense | 593 | 638 | 1,727 | 1,831 |
Net interest income | 14,661 | 11,928 | 43,517 | 33,959 |
Provision (recovery) for loan losses | 700 | 300 | 1,341 | 600 |
Net interest income after provision for loan losses | 13,961 | 11,628 | 42,176 | 33,359 |
Non-interest income: | ||||
Card fees | 13,854 | 11,805 | 40,607 | 36,753 |
Bank-owned life insurance | 702 | 283 | 1,267 | 853 |
Loan fees | 632 | 183 | 1,759 | 828 |
Deposit fees | 151 | 159 | 448 | 456 |
Gain (loss) on sale of securities available for sale, net (Includes $51 and ($1,191) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three and nine months ended June 30, 2015) | 51 | 0 | (1,191) | 97 |
Gain (loss) on foreclosed real estate | 1 | 1 | 29 | 6 |
Other income | 33 | 50 | 149 | 138 |
Total non-interest income | 15,424 | 12,481 | 43,068 | 39,131 |
Non-interest expense: | ||||
Compensation and benefits | 12,126 | 9,318 | 34,324 | 28,288 |
Card processing | 3,868 | 3,850 | 12,374 | 11,668 |
Occupancy and equipment | 2,866 | 2,309 | 8,304 | 6,858 |
Legal and consulting | 1,116 | 540 | 3,333 | 2,706 |
Data processing | 323 | 320 | 1,002 | 992 |
Marketing | 417 | 267 | 1,063 | 700 |
Other expense | 3,757 | 2,233 | 9,905 | 6,429 |
Total non-interest expense | 24,473 | 18,837 | 70,305 | 57,641 |
Income before income tax expense | 4,912 | 5,272 | 14,939 | 14,849 |
Income tax expense (Includes $19 and ($433) income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the three and nine months ended June 30, 2015) | 272 | 1,068 | 1,523 | 2,500 |
Net income | $ 4,640 | $ 4,204 | $ 13,416 | $ 12,349 |
Earnings per common share: | ||||
Basic (in dollars per share) | $ 0.67 | $ 0.69 | $ 2.05 | $ 2.02 |
Diluted (in dollars per share) | $ 0.66 | $ 0.68 | $ 2.03 | $ 1.99 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - Jun. 30, 2015 - USD ($) $ in Thousands | Total | Total |
Non-interest income: | ||
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ 51 | $ (1,191) |
Income tax expense (benefit) reclassified from accumulated other comprehensive income | $ 19 | $ (433) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract] | ||||
Net income | $ 4,640 | $ 4,204 | $ 13,416 | $ 12,349 |
Other comprehensive income (loss): | ||||
Change in net unrealized gain (loss) on securities | (16,660) | 15,837 | (4,208) | 23,581 |
Losses (gains) realized in net income | (51) | 0 | 1,191 | (97) |
Total available for sale adjustment | (16,711) | 15,837 | (3,017) | 23,484 |
Deferred income tax effect | (6,062) | 5,769 | (1,038) | 8,616 |
Total other comprehensive income (loss) | (10,649) | 10,068 | (1,979) | 14,868 |
Total comprehensive income (loss) | $ (6,009) | $ 14,272 | $ 11,437 | $ 27,217 |
Condensed Consolidated Stateme7
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Treasury Stock [Member] | Total |
Balance at Sep. 30, 2013 | $ 61 | $ 92,963 | $ 71,268 | $ (20,285) | $ (1,023) | $ 142,984 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock ($0.26 per share) | 0 | 0 | (2,386) | 0 | 0 | (2,386) |
Issuance of common shares from the sales of equity securities | 1 | (52) | 0 | 0 | 0 | (51) |
Issuance of common shares due to issuance of stock options and restricted stock | 0 | 1,026 | 0 | 0 | 296 | 1,322 |
Stock compensation | 0 | 132 | 0 | 0 | 0 | 132 |
Net change in unrealized losses on securities, net of income taxes | 0 | 0 | 0 | 14,868 | 0 | 14,868 |
Net income | 0 | 0 | 12,349 | 0 | 0 | 12,349 |
Balance at Jun. 30, 2014 | 62 | 94,069 | 81,231 | (5,417) | (727) | 169,218 |
Balance at Sep. 30, 2014 | 62 | 95,079 | 83,797 | (3,409) | (727) | 174,802 |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||
Cash dividends declared on common stock ($0.26 per share) | 0 | 0 | (2,588) | 0 | 0 | (2,588) |
Issuance of common shares from the sales of equity securities | 8 | 24,987 | 0 | 0 | 417 | 25,412 |
Issuance of common shares due to issuance of stock options and restricted stock | 0 | 207 | 0 | 0 | 0 | 207 |
Net change in unrealized losses on securities, net of income taxes | 0 | 0 | 0 | (1,979) | 0 | (1,979) |
Net income | 0 | 0 | 13,416 | 0 | 0 | 13,416 |
Balance at Jun. 30, 2015 | $ 70 | $ 120,273 | $ 94,625 | $ (5,388) | $ (310) | $ 209,270 |
Condensed Consolidated Stateme8
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||
Cash dividends declared on common stock (in dollars per share) | $ 0.26 | $ 0.26 |
Condensed Consolidated Stateme9
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Cash flows from operating activities: | ||
Net income | $ 13,416 | $ 12,349 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | ||
Depreciation, amortization and accretion, net | 19,674 | 13,580 |
Provision (recovery) for loan losses | 1,341 | 600 |
Provision (recovery) for deferred taxes | (2,424) | (1,675) |
(Gain) loss on other assets | (647) | (39) |
(Gain) loss on sale of securities available for sale, net | 1,191 | (97) |
Capital lease interest expense | (99) | 0 |
Net change in accrued interest receivable | (3,013) | (2,286) |
Net change in other assets | 1,391 | (490) |
Net change in accrued interest payable | (39) | 8 |
Net change in accrued expenses and other liabilities | 11,714 | 4,994 |
Net cash provided by (used in) operating activities | 42,505 | 26,944 |
Cash flows from investing activities: | ||
Purchase of securities available for sale | (591,786) | (267,616) |
Proceeds from sales of securities available for sale | 463,108 | 68,167 |
Proceeds from maturities and principal repayments of securities available for sale | 90,786 | 60,031 |
Purchase of securities held to maturity | (57,949) | (10,684) |
Proceeds from maturities and principal repayments of securities held to maturity | 7,240 | 14,858 |
Purchase of bank owned life insurance | (10,000) | (500) |
Loans purchased | 0 | (1,816) |
Loans sold | 5,496 | 0 |
Net change in loans receivable | (91,294) | (90,296) |
Proceeds from sales of foreclosed real estate | 34 | 0 |
Net cash paid for acquisition | (92,308) | 0 |
Federal Home Loan Bank stock purchases | (371,364) | (311,171) |
Federal Home Loan Bank stock redemptions | 368,760 | 304,320 |
Proceeds from the sale of premises and equipment | 2,100 | 1,169 |
Purchase of premises and equipment | (3,231) | (1,733) |
Net cash provided by (used in) investing activities | (280,408) | (235,271) |
Cash flows from financing activities: | ||
Net change in checking, savings, and money market deposits | 202,256 | 45,294 |
Net change in time deposits | (55,590) | (14,518) |
Net proceeds from federal funds purchased | 56,000 | 170,000 |
Net change in securities sold under agreements to repurchase | 2,867 | (668) |
Capital lease amortization | (88) | 0 |
Cash dividends paid | (2,588) | (2,386) |
Stock compensation | 0 | 132 |
Proceeds from issuance of common stock | 25,619 | 1,271 |
Net cash provided by (used in) financing activities | 228,476 | 199,125 |
Net change in cash and cash equivalents | (9,427) | (9,202) |
Cash and cash equivalents at beginning of period | 29,832 | 40,063 |
Cash and cash equivalents at end of period | 20,405 | 30,861 |
Cash paid during the period for: | ||
Interest | 1,767 | 1,824 |
Income taxes | 4,002 | 3,262 |
Franchise taxes | 78 | 0 |
Other taxes | 47 | 0 |
Supplemental schedule of non-cash investing activities: | ||
Securities transferred from available for sale to held to maturity | 310 | 0 |
Sale leaseback | $ 2,259 | $ 0 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Jun. 30, 2015 | |
BASIS OF PRESENTATION [Abstract] | |
BASIS OF PRESENTATION | NOTE 1. 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, 2014 included in Meta Financial Group, Inc.’s (“Meta Financial” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on December 12, 2014. 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, 2015, are not necessarily indicative of the results expected for the year ending September 30, 2015. |
ACQUISITION
ACQUISITION | 9 Months Ended |
Jun. 30, 2015 | |
ACQUISITION [Abstract] | |
ACQUISITION | NOTE 2. ACQUISITION On December 2, 2014, the Company, through its wholly-owned subsidiary, MetaBank, purchased substantially all of the commercial loan portfolio and related assets of AFS/IBEX Financial Services, Inc. (“AFS/IBEX”), an insurance premium finance company based in Dallas, Texas. Following the acquisition, MetaBank established its AFS/IBEX division, which provides short-term, collateralized financing to facilitate the purchase of insurance for commercial property, casualty, and liability risk through a network of over 1,300 independent insurance agencies throughout the United States. In addition to its operations at the Bank’s main office, the AFS/IBEX division has two agency offices, one in Dallas, Texas and one in southern California. Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the December 2, 2014 tangible book value of AFS/IBEX, was approximately $99.3 million, all of which was paid in cash. The Company acquired assets with approximate fair values of $6.9 million cash and cash equivalents, $74.1 million net loans receivable, $0.7 million other assets, $8.2 million intangible assets including customer relationships, trademark, and non-compete agreements, and $11.6 million goodwill. The Company also assumed liabilities of $2.2 million consisting of accrued expenses and other liabilities. All amounts are at estimated fair market values. The following table represents the approximate fair value of assets acquired and liabilities assumed of AFS/IBEX on the consolidated balance sheet as of December 2, 2014: As of December 2, 2014 (Dollars in Thousands) Fair value of consideration paid Cash $ 99,255 Total consideration paid 99,255 Fair value of assets acquired Cash and cash equivalents 6,947 Loans receivable, net 74,120 Prepaid assets 156 Furniture and equipment, net 449 Intangible assets 8,213 Other assets 6 Total assets 89,891 Fair value of liabilities assumed Accrued expenses and other liabilities 2,214 Total liabilities assumed 2,214 Fair value of net assets acquired 87,677 Goodwill resulting from acquisition $ 11,578 The AFS/IBEX transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. The Company recognized goodwill of $11.6 million, which is calculated as the excess of both the consideration exchanged and the liabilities assumed as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies, an enhanced market area, and expanded product lines and is expected to be deductible for tax purposes. See Note 12 to the Condensed Consolidated Financial Statements for further information on goodwill. Acquired loans were recorded at fair value based on a discounted cash flow valuation which considered default rates, loss given defaults, and recovery rates, among other things. No allowance for credit losses was carried over on December 2, 2014. |
CREDIT DISCLOSURES
CREDIT DISCLOSURES | 9 Months Ended |
Jun. 30, 2015 | |
CREDIT DISCLOSURES [Abstract] | |
CREDIT DISCLOSURES | NOTE 3. CREDIT DISCLOSURES The allowance for loan losses represents management’s estimate of probable loan losses which have been incurred as of the date of the consolidated financial statements. The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur. Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance. The allowance consists of specific, general, and unallocated components. The specific component relates to impaired loans. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general component covers loans not considered impaired and is based on historical loss experience adjusted for qualitative factors. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. Smaller-balance homogenous loans are collectively evaluated for impairment. Such loans include premium finance loans, residential first mortgage loans secured by one-to-four family residences, residential construction loans, and automobile, manufactured homes, home equity and second mortgage loans. Commercial and agricultural loans and mortgage loans secured by other properties are evaluated individually for impairment. When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories. Non-accrual loans and all troubled debt restructurings are considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Loans receivable at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 September 30, 2014 (Dollars in Thousands) 1-4 Family Real Estate $ 118,716 $ 116,395 Commercial and Multi-Family Real Estate 278,910 224,302 Agricultural Real Estate 64,173 56,071 Consumer 32,968 29,329 Commercial Operating 30,004 30,846 Agricultural Operating 41,511 42,258 Premium Finance 91,740 - Total Loans Receivable 658,022 499,201 Less: Allowance for Loan Losses (6,232 ) (5,397 ) Net Deferred Loan Origination Fees (260 ) (797 ) Total Loans Receivable, Net $ 651,530 $ 493,007 Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and nine month periods ended June 30, 2015 and 2014 is as follows: 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2015 Allowance for loan losses: Beginning balance $ 522 $ 1,218 $ 265 $ 78 $ 101 $ 667 $ 168 $ 2,697 $ 5,716 Provision (recovery) for loan losses 8 34 164 5 9 1,940 100 (1,560 ) 700 Charge offs - - - - - (150 ) (96 ) - (246 ) Recoveries - - - - - - 62 - 62 Ending balance $ 530 $ 1,252 $ 429 $ 83 $ 110 $ 2,457 $ 234 $ 1,137 $ 6,232 Nine Months Ended June 30, 2015 Allowance for loan losses: Beginning balance $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Provision (recovery) for loan losses 23 (115 ) 166 5 14 1,888 340 (980 ) 1,341 Charge offs (45 ) (214 ) - - - (150 ) (194 ) - (603 ) Recoveries - 6 - - 3 - 88 - 97 Ending balance $ 530 $ 1,252 $ 429 $ 83 $ 110 $ 2,457 $ 234 $ 1,137 $ 6,232 Ending balance: individually evaluated for impairment - 265 - - - 2,161 - - 2,426 Ending balance: collectively evaluated for impairment 530 987 429 83 110 296 234 1,137 3,806 Total $ 530 $ 1,252 $ 429 $ 83 $ 110 $ 2,457 $ 234 $ 1,137 $ 6,232 Loans: Ending balance: individually evaluated for impairment 124 1,397 - - 13 5,869 - - 7,403 Ending balance: collectively evaluated for impairment 118,592 277,513 64,173 32,968 29,991 35,642 91,740 - 650,619 Total $ 118,716 $ 278,910 $ 64,173 $ 32,968 $ 30,004 $ 41,511 $ 91,740 $ - $ 658,022 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2014 Allowance for loan losses: Beginning balance $ 287 $ 1,666 $ 235 $ 71 $ 66 $ 478 $ - $ 1,769 $ 4,572 Provision (recovery) for loan losses (74 ) 23 112 6 14 277 - (58 ) 300 Charge offs - - - - - - - - - Recoveries 2 19 - - - 2 - - 23 Ending balance $ 215 $ 1,708 $ 347 $ 77 $ 80 $ 757 $ - $ 1,711 $ 4,895 Nine Months Ended June 30, 2014 Allowance for loan losses: Beginning balance $ 333 $ 1,937 $ 112 $ 74 $ 49 $ 267 $ - $ 1,158 $ 3,930 Provision (recovery) for loan losses (120 ) (576 ) 235 3 31 474 - 553 600 Charge offs - - - - - - - - - Recoveries 2 347 - - - 16 - - 365 Ending balance $ 215 $ 1,708 $ 347 $ 77 $ 80 $ 757 $ - $ 1,711 $ 4,895 Ending balance: individually evaluated for impairment - 358 - - - - - - 358 Ending balance: collectively evaluated for impairment 215 1,350 347 77 80 757 - 1,711 4,537 Total $ 215 $ 1,708 $ 347 $ 77 $ 80 $ 757 $ - $ 1,711 $ 4,895 Loans: Ending balance: individually evaluated for impairment 389 5,678 - - 28 - - - 6,095 Ending balance: collectively evaluated for impairment 108,324 211,226 56,945 29,379 26,655 38,958 - - 471,487 Total $ 108,713 $ 216,904 $ 56,945 $ 29,379 $ 26,683 $ 38,958 $ - $ - $ 477,582 Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by our regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.” The loan classification and risk rating definitions are as follows: Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating. Watch- A watch asset is generally credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets. Special Mention- Special mention assets are credits with potential weaknesses deserving management’s close attention and if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher. The adverse classifications are as follows: Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified have well-defined weaknesses creating a distinct possibility that the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard. Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors the asset’s classification as loss is not yet appropriate. Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets. When assets are classified as “loss,” the Bank is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount. The Bank’s determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances. The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans to an individual, a specific industry, a geographic location, or an occupation. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Bank’s Tier 1 Capital plus the Allowance for Loan Losses. The asset classification of loans at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 118,465 $ 275,549 $ 37,023 $ 32,968 $ 29,019 $ 25,904 $ 91,740 $ 610,668 Watch 216 2,412 24,810 - 837 3,771 - 32,046 Special Mention 10 - 877 - - 1,716 - 2,603 Substandard 25 949 1,463 - 148 10,120 - 12,705 Doubtful - - - - - - - - $ 118,716 $ 278,910 $ 64,173 $ 32,968 $ 30,004 $ 41,511 $ 91,740 $ 658,022 September 30, 2014 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 115,700 $ 222,074 $ 52,364 $ 29,329 $ 30,709 $ 32,261 $ - $ 482,437 Watch 369 852 273 - 137 369 - 2,000 Special Mention 81 96 1,660 - - 63 - 1,900 Substandard 245 1,280 1,774 - - 9,565 - 12,864 Doubtful - - - - - - - - $ 116,395 $ 224,302 $ 56,071 $ 29,329 $ 30,846 $ 42,258 $ - $ 499,201 One-to-Four Family Residential Mortgage Lending The Company originates one-to-four family residential mortgage loans with terms up to a maximum of 30-years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the security property or the contract price. The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level, unless the loan is insured by the Federal Housing Administration, guaranteed by Veterans Affairs or guaranteed by the Rural Housing Administration. Residential loans generally do not include prepayment penalties. The Company currently offers five and ten year ARM loans. These loans have a fixed-rate for the stated period and, thereafter, adjust annually. These loans generally provide for an annual cap of up to 200 basis points and a lifetime cap of 600 basis points over the initial rate. As a consequence of using an initial fixed-rate and caps, the interest rates on these loans may not be as rate sensitive as the Company’s cost of funds. The Company’s ARMs do not permit negative amortization of principal and are not convertible into fixed rate loans. The Company’s delinquency experience on its ARM loans has generally been similar to its experience on fixed-rate residential loans. The current low mortgage interest rate environment makes ARM loans relatively unattractive and very few are currently being originated. Due to consumer demand, the Company also offers fixed-rate mortgage loans with terms up to 30 years, most of which conform to secondary market, i.e. In underwriting one-to-four family residential real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan. Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors. The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan. Real estate loans originated by the Company generally contain a “due on sale” clause allowing the Company to declare the unpaid principal balance due and payable upon the sale of the security property. The Company has not engaged in sub-prime residential mortgage originations. Commercial and Multi-Family Real Estate Lending The Company’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 25 years, have loan-to-value ratios of up to 80% of the appraised value of the security property, and are typically secured by personal 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 Agricultural real estate loans are frequently originated with adjustable rates of interest. Generally, such loans provide for a fixed rate of interest for the first five to ten years, which then balloon or adjust annually thereafter. In addition, such loans generally amortize over a period of 20 to 25 years. Fixed-rate agricultural real estate loans generally have terms up to ten years. Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan. Agricultural lending affords the Company the opportunity to earn yields higher than those obtainable on one-to-four family residential lending. Agricultural lending 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 upon whose injury or death may result in an inability to successfully operate the farm. Consumer Lending – Retail Bank The largest component of the Retail Bank’s consumer loan portfolio consists of home equity loans and lines of credit. Substantially all of the Retail Bank’s home equity loans and lines of credit are secured by second mortgages on principal residences. The Retail Bank will lend amounts which, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan. The Retail Bank primarily originates automobile loans on a direct basis. Direct loans are loans made when the Retail Bank extends credit directly to the borrower, as opposed to indirect loans, which are made when the Retail Bank purchases loan contracts, often at a discount, from automobile dealers which have extended credit to their customers. The Bank’s automobile loans typically are originated at fixed interest rates with terms up to 60 months for new and used vehicles. Loans secured by automobiles are generally originated for up to 80% of the N.A.D.A. book value of the automobile securing the loan. Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower. The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan. Although creditworthiness of the applicant is a primary consideration, the underwriting process also includes a comparison of the value of the security, if any, in relation to the proposed loan amount. Consumer loans may entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment. In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation. In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus more likely to be affected by adverse personal circumstances. Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans. Consumer Lending- Meta Payment Systems MPS The Company believes that well-managed, nationwide credit programs can help meet legitimate credit needs for prime and sub-prime borrowers, and affords the Company an opportunity to diversify the loan portfolio and minimize earnings exposure due to economic downturns. Therefore, MPS designs and administers certain credit programs that seek to accomplish these objectives. MPS strives to offer consumers innovative payment products, including credit products. Most credit products have fallen into the category of portfolio lending. MPS continues to work on new alternative portfolio lending products striving to serve its core customer base and provide unique and innovative lending solutions to the unbanked and under-banked segment. A Portfolio Credit Policy which has been approved by the Board of Directors governs portfolio credit initiatives undertaken by MPS, whereby the Company retains some or all receivables and relies on the borrower as the underlying source of repayment. Several portfolio lending programs also have a contractual provision that requires the Bank to be indemnified for credit losses that meet or exceed predetermined levels. Such a program carries additional risks not commonly found in sponsorship programs, specifically funding and credit risk. Therefore, MPS has strived to employ policies, procedures, and information systems that it believes commensurate with the added risk and exposure. The Company recognizes concentrations of credit may naturally occur and may take the form of a large volume of related loans to an individual, a specific industry, a geographic location, or an occupation. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Bank’s Tier 1 Capital plus the Allowance for Loan Losses. The MPS Credit Committee monitors and identifies the credit concentrations in accordance with the Bank’s concentration policy and evaluates the specific nature of each concentration to determine the potential risk to the Bank. An evaluation includes the following: · A recommendation regarding additional controls needed to mitigate the concentration exposure. · A limitation or cap placed on the size of the concentration. · The potential necessity for increased capital and/or credit reserves to cover the increased risk caused by the concentration(s). · A strategy to reduce to acceptable levels those concentration(s) that are determined to create undue risk to the Bank. Commercial Operating Lending The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment. Generally, the maximum term on non-mortgage lines of credit is one year. The loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan. The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower. Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s current credit analysis. Nonetheless, such loans are believed to carry higher credit risk than more traditional lending activities. Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income and which are secured by real property whose value tends to be more easily ascertainable, commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business. As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment). The Company’s commercial operating loans are usually, but not always, secured by business assets and personal guarantees. However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business. Premium Finance Receivables AFS/IBEX division markets itself to the insurance community as a competitive option based on service, its reputation, competitive terms, cost and ease of operation. Insurance premium financing is the business of extending credit to a policyholder to pay for insurance premiums when the insurance carrier requires payment in full at inception of coverage. Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term. The policyholder generally makes a 20% to 30% down payment to the insurance broker and finances the remainder over nine to ten months on average. The down payment is set such that if the policy is cancelled, the unearned premium is typically sufficient to cover the loan balance and accrued interest. Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-150 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 is typically 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. Management will continue to accrue interest until maturity as the unearned premium is ordinarily, but not always sufficient to pay off the outstanding balance and contractual interest due. Past due loans at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 444 $ - $ - $ 444 $ 118,247 $ 25 $ 118,716 Commercial and Multi-Family Real Estate - - - - 277,987 923 278,910 Agricultural Real Estate 24,770 - - 24,770 39,403 - 64,173 Consumer 135 18 5 158 32,810 - 32,968 Commercial Operating - - - - 30,004 - 30,004 Agricultural Operating 916 116 - 1,032 34,610 5,869 41,511 Premium Finance 2,320 447 681 3,448 88,292 - 91,740 Total $ 28,585 $ 581 $ 686 $ 29,852 $ 621,353 $ 6,817 $ 658,022 September 30, 2014 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 111 $ 37 $ - $ 148 $ 115,966 $ 281 $ 116,395 Commercial and Multi-Family Real Estate - - - - 223,990 312 224,302 Agricultural Real Estate - - - - 56,071 - 56,071 Consumer 2 12 54 68 29,261 - 29,329 Commercial Operating - - - - 30,846 - 30,846 Agricultural Operating - - - - 41,918 340 42,258 Total $ 113 $ 49 $ 54 $ 216 $ 498,052 $ 933 $ 499,201 When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories. As of June 30, 2015, there were no Premium Finance loans greater than 210 days past due. Impaired loans at June 30, 2015 and September 30, 2014 are as follows: Recorded Balance Unpaid Principal Balance Specific Allowance June 30, 2015 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 124 $ 124 $ - Commercial and Multi-Family Real Estate 449 449 - Agricultural Real Estate - - - Consumer - - - Commercial Operating 13 13 - Agricultural Operating - - - Premium Finance - - - Total $ 586 $ 586 $ - Loans with a specific valuation allowance 1-4 Family Real Estate $ - $ - $ - Commercial and Multi-Family Real Estate 948 948 265 Agricultural Real Estate - - - Consumer - - - Commercial Operating - - - Agricultural Operating 5,869 5,869 2,161 Premium Finance - - - Total $ 6,817 $ 6,817 $ 2,426 Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2014 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 142 $ 142 $ - Commercial and Multi-Family Real Estate 4,375 4,375 - Agricultural Real Estate - - - Consumer - - - Commercial Operating 22 22 - Agricultural Operating - - - Total $ 4,539 $ 4,539 $ - Loans with a specific valuation allowance 1-4 Family Real Estate $ 245 $ 245 $ 23 Commercial and Multi-Family Real Estate 1,280 1,280 350 Agricultural Real Estate - - - Consumer - - - Commercial Operating - - - Agricultural Operating 340 340 340 Total $ 1,865 $ 1,865 $ 713 The following table provides the average recorded investment in impaired loans for the three and nine month periods ended June 30, 2015 and 2014. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Average Recorded Investment Average Recorded Investment Average Recorded Investment Average Recorded Investment (Dollars in Thousands) 1-4 Family Real Estate $ 162 $ 579 $ 276 $ 636 Commercial and Multi-Family Real Estate 1,406 5,694 2,358 6,811 Agricultural Real Estate - - - - Consumer 1 - - - Commercial Operating 15 29 18 37 Agricultural Operating 6,046 - 2,871 - Premium Finance - - - - Total $ 7,630 $ 6,302 $ 5,522 $ 7,484 The Company’s troubled debt restructurings (“TDR”) typically involve forgiving a portion of interest or principal on existing loans or making loans at a rate materially less than current market rates. |
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN LOSSES | 9 Months Ended |
Jun. 30, 2015 | |
ALLOWANCE FOR LOAN LOSSES [Abstract] | |
ALLOWANCE FOR LOAN LOSSES | NOTE 4. ALLOWANCE FOR LOAN LOSSES At June 30, 2015, the Company’s allowance for loan losses was $6.2 million, an increase of $0.8 million from $5.4 million at September 30, 2014. During the nine months ended June 30, 2015, the Company recorded a provision for loan losses of $1.3 million. In addition, the Company had $0.5 million net charge offs for the nine months ended June 30, 2015, compared to net recoveries of $0.4 million for the nine months ended June 30, 2014. The allowance for loan losses is established through a 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. W hile the current economic environment is still slightly strained, it has begun to show signs of improvement in Meta Financial’s markets. Meta Financial’s loss rates over the past three years were very low. Notwithstanding these signs of improvement, Meta Financial does not believe it is likely these low loss conditions will continue indefinitely. All of Meta Financial’s markets indirectly benefit from a good agricultural market. The allowance for loan losses established by MPS results from an estimation process that evaluates relevant characteristics of its credit portfolio. MPS also considers other internal and external environmental factors such as changes in operations or personnel and economic events that may affect the adequacy of the allowance for credit losses. Adjustments to the allowance for loan losses are recorded periodically based on the result of this estimation process. Management believes that, based on a detailed review of the loan portfolio, historic loan losses, current economic conditions, the size of the loan portfolio, and other factors, the current level of the allowance for loan losses at June 30, 2015, reflects an appropriate allowance against probable losses from the loan portfolio. Although the Company maintains its allowance for loan losses at a level it considers to be adequate, investors and others are cautioned that there can be no assurance that future losses will not exceed estimated amounts, or that additional provisions for loan losses will not be required in future periods. In addition, the Company’s determination of the allowance for loan losses is subject to review by the OCC, which can require the establishment of additional general or specific allowances. Real estate properties acquired through foreclosure are recorded at fair value. If fair value at the date of foreclosure is lower than the balance of the related loan, the difference will be charged to the allowance for loan losses at the time of transfer. Valuations are periodically updated by management and, if the value declines, a specific provision for losses on such property is established by a charge to operations. |
EARNINGS PER COMMON SHARE ("EPS
EARNINGS PER COMMON SHARE ("EPS") | 9 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER COMMON SHARE ("EPS") [Abstract] | |
EARNINGS PER COMMON SHARE ("EPS") | NOTE 5. EARNINGS PER COMMON SHARE (“EPS”) Basic EPS is based on the net income divided by the weighted average number of common shares outstanding during the period. Allocated Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for EPS calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding. All ESOP shares were allocated as of June 30, 2015 and September 30, 2014. Diluted EPS shows the dilutive effect of additional common shares issuable pursuant to stock option agreements. A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three and nine months ended June 30, 2015 and 2014 is presented below. Three Months Ended June 30, 2015 2014 (Dollars in Thousands, Except Share and Per Share Data) Earnings Net Income $ 4,640 $ 4,204 Basic EPS Weighted average common shares outstanding 6,942,486 6,132,169 Less weighted average nonvested shares 3,922 4,000 Weighted average common shares outstanding 6,938,564 6,128,169 Earnings Per Common Share Basic $ 0.67 $ 0.69 Diluted EPS Weighted average common shares outstanding for basic earnings per common share 6,938,564 6,128,169 Add dilutive effect of assumed exercises of stock options, net of tax benefits 74,060 77,201 Weighted average common and dilutive potential common shares outstanding 7,012,624 6,205,370 Earnings Per Common Share Diluted $ 0.66 $ 0.68 Nine Months Ended June 30, 2015 2014 (Dollars in Thousands, Except Share and Per Share Data) Earnings Net Income $ 13,416 $ 12,349 Basic EPS Weighted average common shares outstanding 6,555,415 6,109,955 Less weighted average unallocated ESOP and nonvested shares 4,193 4,401 Weighted average common shares outstanding 6,551,222 6,105,554 Earnings Per Common Share Basic $ 2.05 $ 2.02 Diluted EPS Weighted average common shares outstanding for basic earnings per common share 6,551,222 6,105,554 Add dilutive effect of assumed exercises of stock options, net of tax benefits 65,228 91,409 Weighted average common and dilutive potential common shares outstanding 6,616,450 6,196,963 Earnings Per Common Share Diluted $ 2.03 $ 1.99 Stock options totaling 29,199 were not considered in computing diluted EPS for the three and nine months ended June 30, 2015 and June 30, 2014, because they were not dilutive. |
SECURITIES
SECURITIES | 9 Months Ended |
Jun. 30, 2015 | |
SECURITIES [Abstract] | |
SECURITIES | NOTE 6. SECURITIES The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at June 30, 2015 and September 30, 2014 are presented below. Available For Sale At June 30, 2015 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 19,209 $ 18 $ (2,235 ) $ 16,992 Small business administration securities 35,967 1,183 - 37,150 Non-bank qualified obligations of states and political subdivisions 512,311 1,918 (6,527 ) 507,702 Mortgage-backed securities 602,672 1,512 (7,208 ) 596,976 Total debt securities 1,170,159 4,631 (15,970 ) 1,158,820 Common equities and mutual funds 640 333 (7 ) 966 Total available for sale securities $ 1,170,799 $ 4,964 $ (15,977 ) $ 1,159,786 At September 30, 2014 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 48,747 $ 191 $ (2,009 ) $ 46,929 Small business administration securities 66,541 543 (72 ) 67,012 Non-bank qualified obligations of states and political subdivisions 368,897 2,494 (3,811 ) 367,580 Mortgage-backed securities 663,690 3,519 (9,339 ) 657,870 Total debt securities 1,147,875 6,747 (15,231 ) 1,139,391 Common equities and mutual funds 539 291 (5 ) 825 Total available for sale securities $ 1,148,414 $ 7,038 $ (15,236 ) $ 1,140,216 Held to Maturity At June 30, 2015 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,303 $ 26 $ (453 ) $ 18,876 Non-bank qualified obligations of states and political subdivisions 243,275 668 (3,250 ) 240,693 Mortgage-backed securities 69,057 - (1,637 ) 67,420 Total held to maturity securities $ 331,635 $ 694 $ (5,340 ) $ 326,989 At September 30, 2014 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,304 $ 48 $ (372 ) $ 18,980 Non-bank qualified obligations of states and political subdivisions 193,595 894 (2,329 ) 192,160 Mortgage-backed securities 70,034 - (1,862 ) 68,172 Total held to maturity securities $ 282,933 $ 942 $ (4,563 ) $ 279,312 Included in securities available for sale are trust preferred securities as follows: At June 30, 2015 Issuer (1) Amortized Cost Fair Value Unrealized Gain (Loss) S&P Credit Rating Moody's Credit Rating (Dollars in Thousands) Key Corp. Capital I $ 4,986 $ 4,220 $ (766 ) BB+ Baa2 Huntington Capital Trust II SE 4,979 4,025 (954 ) BB Baa2 PNC Capital Trust 4,964 4,449 (515 ) BBB- Baa1 Total $ 14,929 $ 12,694 $ (2,235 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. At September 30, 2014 Issuer (1) Amortized Cost Fair Value Unrealized Gain (Loss) S&P Credit Rating Moody's Credit Rating (Dollars in Thousands) Key Corp. Capital I $ 4,985 $ 4,400 $ (585 ) BB+ Baa3 Huntington Capital Trust II SE 4,977 4,300 (677 ) BB Baa3 PNC Capital Trust 4,962 4,400 (562 ) BBB- Baa2 Wells Fargo (Corestates Capital) Trust 4,444 4,400 (44 ) BBB+ A3 Total $ 19,368 $ 17,500 $ (1,868 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. Management has implemented processes to identify securities that could potentially have a credit impairment that is other-than-temporary. This process can include, but is not limited to, evaluating the length of time and extent to which the fair value has been less than the amortized cost basis, reviewing available information regarding the financial position of the issuer, interest or dividend payment status, monitoring the rating of the security, monitoring changes in value, and projecting cash flows. Management also determines whether the Company intends to sell a security or whether it is more likely than not we will be required to sell the security before the recovery of its amortized cost basis which, in some cases, may extend to maturity. To the extent we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired. Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and September 30, 2014, are as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ - $ - $ 12,694 $ (2,235 ) $ 12,694 $ (2,235 ) Non-bank qualified obligations of states and political subdivisions 326,156 (4,846 ) 39,677 (1,681 ) 365,833 (6,527 ) Mortgage-backed securities 457,327 (5,548 ) 66,286 (1,660 ) 523,613 (7,208 ) Total debt securities 783,483 (10,394 ) 118,657 (5,576 ) 902,140 (15,970 ) Common equities and mutual funds - - 122 (7 ) 122 (7 ) Total available for sale securities $ 783,483 $ (10,394 ) $ 118,779 $ (5,583 ) $ 902,262 $ (15,977 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2014 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 6,073 $ (47 ) $ 25,359 $ (1,962 ) $ 31,432 $ (2,009 ) Small Business Administration securities 8,454 (72 ) - - 8,454 (72 ) Non-bank qualified obligations of states and political subdivisions 27,062 (70 ) 191,146 (3,741 ) 218,208 (3,811 ) Mortgage-backed securities 238,980 (1,248 ) 234,347 (8,091 ) 473,327 (9,339 ) Total debt securities 280,569 (1,437 ) 450,852 (13,794 ) 731,421 (15,231 ) Common equities and mutual funds 123 (5 ) - - 123 (5 ) Total available for sale securities $ 280,692 $ (1,442 ) $ 450,852 $ (13,794 ) $ 731,544 $ (15,236 ) Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 8,237 $ (149 ) $ 8,817 $ (304 ) $ 17,054 $ (453 ) Non-bank qualified obligations of states and political subdivisions 208,411 (3,145 ) 3,412 (105 ) 211,823 (3,250 ) Mortgage-backed securities 5,486 (95 ) 61,934 (1,542 ) 67,420 (1,637 ) Total held to maturity securities $ 222,134 $ (3,389 ) $ 74,163 $ (1,951 ) $ 296,297 $ (5,340 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2014 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,056 $ (2 ) $ 14,079 $ (370 ) $ 15,135 $ (372 ) Non-bank qualified obligations of states and political subdivisions - - 147,949 (2,329 ) 147,949 (2,329 ) Mortgage-backed securities - - 68,172 (1,862 ) 68,172 (1,862 ) Total held to maturity securities $ 1,056 $ (2 ) $ 230,200 $ (4,561 ) $ 231,256 $ (4,563 ) At June 30, 2015, the investment portfolio included securities with current unrealized losses which have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at June 30, 2015. The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At June 30, 2015 (Dollars in Thousands) Due in one year or less $ 3,000 $ 3,008 Due after one year through five years 1,179 1,205 Due after five years through ten years 330,864 331,747 Due after ten years 232,444 225,884 567,487 561,844 Mortgage-backed securities 602,672 596,976 Common equities and mutual funds 640 966 Total available for sale securities $ 1,170,799 $ 1,159,786 AMORTIZED COST FAIR VALUE September 30, 2014 (Dollars in Thousands) Due in one year or less $ 2,999 $ 3,048 Due after one year through five years 9,922 10,079 Due after five years through ten years 285,413 285,698 Due after ten years 185,851 182,696 484,185 481,521 Mortgage-backed securities 663,690 657,870 Common equities and mutual funds 539 825 Total available for sale securities $ 1,148,414 $ 1,140,216 Held To Maturity AMORTIZED COST FAIR VALUE At June 30, 2015 (Dollars in Thousands) Due in one year or less $ 95 $ 95 Due after one year through five years 6,028 5,986 Due after five years through ten years 126,463 124,618 Due after ten years 129,992 128,870 262,578 259,569 Mortgage-backed securities 69,057 67,420 Total held to maturity securities $ 331,635 $ 326,989 AMORTIZED COST FAIR VALUE September 30, 2014 (Dollars in Thousands) Due in one year or less $ 347 $ 348 Due after one year through five years 4,726 4,718 Due after five years through ten years 91,532 89,984 Due after ten years 116,294 116,090 212,899 211,140 Mortgage-backed securities 70,034 68,172 Total held to maturity securities $ 282,933 $ 279,312 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended |
Jun. 30, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 7. 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, 2015 and September 30, 2014, unfunded loan commitments approximated $124.2 million and $96.0 million respectively, excluding undisbursed portions of loans in process. These unfunded loan commitments were principally for variable rate loans. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract. At June 30, 2015, the Company had one commitment to purchase securities available for sale totaling $3.6 million. The Company had no commitments to purchase securities at September 30, 2014. The exposure to credit loss in the event of nonperformance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments. The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments. In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Legal Proceedings The Bank was served on April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman Certain corporate clients of an unrelated company named Springbok Services, Inc. (“Springbok”) requested through counsel a mediation as a means of reaching a settlement in lieu of commencing litigation against MetaBank. The results of that mediation have not led to a settlement. These claimants purchased MetaBank prepaid reward cards from Springbok, prior to Springbok’s bankruptcy. As a result of Springbok’s bankruptcy and cessation of business, some of the rewards cards which had been purchased were never activated or funded. Counsel for these companies have indicated that they are prepared to assert claims totaling approximately $1.5 million against MetaBank based on principal/agency or failure to supervise theories. The Company denies liability with respect to these claims. The Company’s estimate of a range of reasonably possible loss is approximately $0 to $0.3 million. Other than the matters set forth above, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party other than ordinary litigation routine to their respective businesses. |
STOCK OPTION PLAN
STOCK OPTION PLAN | 9 Months Ended |
Jun. 30, 2015 | |
STOCK OPTION PLAN [Abstract] | |
STOCK OPTION PLAN | NOTE 8. STOCK OPTION PLAN The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors. Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. The Company assumes no projected forfeitures on its stock based compensation, since actual historical forfeiture rates on its stock based incentive awards has been negligible. The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans for the nine months ended June 30, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2014 235,766 $ 25.20 3.78 $ 2,507 Granted - - - - Exercised (15,146 ) 25.06 - 248 Forfeited or expired - - - - Options outstanding, June 30, 2015 220,620 $ 25.21 3.01 $ 3,902 Options exercisable, June 30, 2015 220,620 $ 25.21 3.01 $ 3,902 Number of Shares Weighted Average Fair Value at Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2014 4,000 $ 28.61 Granted 5,680 35.62 Vested (5,450 ) 33.62 Forfeited or expired - - Nonvested shares outstanding, June 30, 2015 4,230 $ 31.55 At June 30, 2015, stock based compensation expense not yet recognized in income totaled $70,584, which is expected to be recognized over a weighted average remaining period of 1.80 years. |
SEGMENT INFORMATION
SEGMENT INFORMATION | 9 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [Abstract] | |
SEGMENT INFORMATION | NOTE 9. 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 has determined that it has two reportable segments. The first reportable segment, Retail Banking, a division of the Bank, operates as a traditional community bank providing deposit, loan and other related products to individuals and small businesses, primarily in the communities where its offices are located. The second reportable segment, MPS, is also a division of the Bank. MPS provides a number of products and services to financial institutions and other businesses. These products and services include issuance of prepaid debit cards, sponsorship of Automated Teller Machines into the debit networks, credit programs, Automated Clearing House (“ACH”) origination services, gift card programs, rebate programs, travel programs, and tax related programs. Other programs are in the process of development. The remaining grouping under the caption “All Others” consists of the operations of the Company and inter-segment eliminations as well as specialty lending. Transactions between affiliates, the resulting revenues of which are shown in the intersegment revenue category, are conducted at market prices, meaning prices that would be paid if the companies were not affiliates. The following tables present segment data for the Company for the three and nine months ended June 30, 2015 and 2014, respectively. Retail Banking Meta Payment Systems ® All Others Total Three Months Ended June 30, 2015 Interest income $ 7,780 $ 5,667 $ 1,807 15,254 Interest expense 393 47 153 593 Net interest income (expense) 7,387 5,620 1,654 14,661 Provision (recovery) for loan losses 600 - 100 700 Non-interest income 1,227 13,808 389 15,424 Non-interest expense 6,497 16,431 1,545 24,473 Income (loss) before income tax expense (benefit) 1,517 2,997 398 4,912 Income tax expense (benefit) 136 132 4 272 Net income (loss) $ 1,381 $ 2,865 $ 394 $ 4,640 Inter-segment revenue (expense) $ (4,126 ) 4,126 $ - $ - Total assets 766,129 1,453,771 90,083 2,309,983 Total deposits 224,982 1,294,757 (6,532 ) 1,513,207 Retail Banking Meta Payment Systems ® All Others Total Nine Months Ended June 30, 2015 Interest income $ 25,096 $ 15,837 $ 4,311 $ 45,244 Interest expense 1,181 138 408 1,727 Net interest income (expense) 23,915 15,699 3,903 43,517 Provision (recovery) for loan losses 1,000 - 341 1,341 Non-interest income 1,546 40,468 1,054 43,068 Non-interest expense 17,657 48,164 4,484 70,305 Income (loss) before income tax expense (benefit) 6,804 8,003 132 14,939 Income tax expense (benefit) 676 1,030 (183 ) 1,523 Net income (loss) $ 6,128 $ 6,973 $ 315 $ 13,416 Inter-segment revenue (expense) $ (12,106 ) $ 12,106 $ - $ - Total assets 766,129 1,453,771 90,083 2,309,983 Total deposits 224,982 1,294,757 (6,532 ) 1,513,207 Retail Banking Meta Payment Systems ® All Others Total Three Months Ended June 30, 2014 Interest income $ 8,223 $ 4,343 $ - $ 12,566 Interest expense 499 27 112 638 Net interest income (expense) 7,724 4,316 (112 ) 11,928 Provision (recovery) for loan losses 300 - - 300 Non-interest income 732 11,749 - 12,481 Non-interest expense 4,852 13,904 81 18,837 Income (loss) before income tax expense (benefit) 3,304 2,161 (193 ) 5,272 Income tax expense (benefit) 653 495 (80 ) 1,068 Net income (loss) $ 2,651 $ 1,666 $ (113 ) $ 4,204 Inter-segment revenue (expense) $ 2,976 (2,976 ) $ - $ - Total assets 678,116 1,241,967 3,250 1,923,333 Total deposits 254,215 1,098,262 (6,418 ) 1,346,059 Retail Banking Meta Payment Systems ® All Others Total Nine Months Ended June 30, 2014 Interest income $ 23,481 $ 12,309 $ - $ 35,790 Interest expense 1,410 84 337 1,831 Net interest income (expense) 22,071 12,225 (337 ) 33,959 Provision (recovery) for loan losses 600 - - 600 Non-interest income 2,540 36,591 - 39,131 Non-interest expense 15,306 41,619 716 57,641 Income (loss) before income tax expense (benefit) 8,705 7,197 (1,053 ) 14,849 Income tax expense (benefit) 1,489 1,400 (389 ) 2,500 Net income (loss) $ 7,216 $ 5,797 $ (664 ) $ 12,349 Inter-segment revenue (expense) $ 9,602 $ (9,602 ) $ - $ - Total assets 678,116 1,241,967 3,250 1,923,333 Total deposits 254,215 1,098,262 (6,418 ) 1,346,059 The following tables present gross profit data for MPS for the three and nine months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 2014 Interest income $ 5,667 $ 4,343 Interest expense 47 27 Net interest income 5,620 4,316 Provision (recovery) for loan losses - - Non-interest income 13,808 11,749 Card processing expense 3,863 3,843 Gross Profit 15,565 12,222 Other non-interest expense 12,568 10,061 Income (loss) before income tax expense (benefit) 2,997 2,161 Income tax expense (benefit) 132 495 Net Income (Loss) $ 2,865 $ 1,666 Nine Months Ended June 30, 2015 2014 Interest income $ 15,837 $ 12,309 Interest expense 138 84 Net interest income 15,699 12,225 Provision (recovery) for loan losses - - Non-interest income 40,468 36,591 Card processing expense 12,358 11,643 Gross Profit 43,809 37,173 Other non-interest expense 35,806 29,976 Income (loss) before income tax expense (benefit) 8,003 7,197 Income tax expense 1,030 1,400 Net Income $ 6,973 $ 5,797 |
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Jun. 30, 2015 | |
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | |
NEW ACCOUNTING PRONOUNCEMENTS | NOTE 10. NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (“ASU”) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure This ASU provides guidance on when a loan should be derecognized and collateral assets recognized during an in substance repossession or foreclosure. The objective of this ASU is to eliminate diversity in practice related to the topic. The ASU states creditors are considered to have physical possession of residential real estate property when either the creditor obtains title for the property or the borrower transfers all interest in the property through a deed or other legal agreement. When physical possession occurs, the loan should be derecognized and collateral assets recognized. This update is effective for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue including, identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 2014-14, Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure This ASU provides guidance on how to account for certain foreclosed government-guaranteed mortgage loans. The creditor should recognize a separate other receivable in the amount the creditor expects to recover from the guarantor. This update is effective for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on the Company’s consolidated financial statements. ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items This ASU eliminates the concept of extraordinary items from U.S. GAAP. The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements. ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements. |
FAIR VALUE MEASUREMENTS
FAIR VALUE MEASUREMENTS | 9 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
FAIR VALUE MEASUREMENTS | NOTE 11. FAIR VALUE MEASUREMENTS Accounting Standards Codification (“ASC”) 820, Fair Value Measurements The fair value hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs Securities Available for Sale and Held to Maturity 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, 2015 and September 30, 2014. 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, 2015 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Trust preferred and corporate securities $ 16,992 $ - $ 16,992 $ - $ - $ - $ - $ - Small business administration securities 37,150 - 37,150 - - - - - Obligations of states and political subdivisions - - - - 18,876 - 18,876 - Non-bank qualified obligations of states and political subdivisions 507,702 - 507,702 - 240,693 - 240,693 - Mortgage-backed securities 596,976 - 596,976 - 67,420 - 67,420 - Total debt securities 1,158,820 - 1,158,820 - 326,989 - 326,989 - Common equities and mutual funds 966 966 - - - - - - Total securities $ 1,159,786 $ 966 $ 1,158,820 $ - $ 326,989 $ - $ 326,989 $ - Fair Value at September 30, 2014 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Trust preferred and corporate securities $ 46,929 $ - $ 46,929 $ - $ - $ - $ - $ - Small business administration securities 67,012 - 67,012 - - - - - Obligations of states and political subdivisions - - - - 18,980 - 18,980 - Non-bank qualified obligations of states and political subdivisions 367,580 - 367,580 - 192,160 - 192,160 - Mortgage-backed securities 657,870 - 657,870 - 68,172 - 68,172 - Total debt securities 1,139,391 - 1,139,391 - 279,312 - 279,312 - Common equities and mutual funds 825 825 - - - - - - Total securities $ 1,140,216 $ 825 $ 1,139,391 $ - $ 279,312 $ - $ 279,312 $ - Foreclosed Real Estate and Repossessed Assets Loans. Receivables The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of June 30, 2015 and September 30, 2014. Fair Value at June 30, 2015 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net One to four family residential mortgage loans $ - $ - $ - $ - Commercial and multi-family real estate loans 683 - - 683 Agricultural operating loans 3,708 - - 3,708 Total Impaired Loans 4,391 - - 4,391 Foreclosed Assets, net 54 - - 54 Total $ 4,445 $ - $ - $ 4,445 Fair Value at September 30, 2014 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net One to four family residential mortgage loans $ 222 $ - $ - $ 222 Commercial and multi-family real estate loans 930 - - 930 Total Impaired Loans 1,152 - - 1,152 Foreclosed Assets, net 15 - - 15 Total $ 1,167 $ - $ - $ 1,167 Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at June 30, 2015 Valuation Technique Unobservable Input Impaired Loans, net $ 4,391 Market approach Appraised values (1) Foreclosed Assets, net 54 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at September 30, 2014 Valuation Technique Unobservable Input Impaired Loans, net $ 1,152 Market approach Appraised values (1) Foreclosed Assets, net 15 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. The following table discloses the Company’s estimated fair value amounts of its financial instruments. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of June 30, 2015 and September 30, 2014, 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, 2015 and September 30, 2014. June 30, 2015 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 20,405 $ 20,405 $ 20,405 $ - $ - Securities available for sale 1,159,786 1,159,786 966 1,158,820 - Securities held to maturity 331,635 326,989 - 326,989 - Total securities 1,491,421 1,486,775 966 1,485,809 - Loans receivable: One to four family residential mortgage loans 118,716 117,325 - - 117,325 Commercial and multi-family real estate loans 278,910 281,441 - - 281,441 Agricultural real estate loans 64,173 65,877 - - 65,877 Consumer loans 32,968 34,131 - - 34,131 Commercial operating loans 30,004 24,927 - - 24,927 Agricultural operating loans 41,511 39,191 - - 39,191 Premium finance 91,740 94,068 - - 94,068 Total loans receivable 658,022 656,960 - - 656,960 Federal Home Loan Bank stock 23,850 23,850 - 23,850 - Accrued interest receivable 14,235 14,235 14,235 - - Financial liabilities Noninterest bearing demand deposits 1,321,213 1,321,213 1,321,213 - - Interest bearing demand deposits, savings, and money markets 113,031 113,031 113,031 - - Certificates of deposit 78,963 79,017 - 79,017 - Total deposits 1,513,207 1,513,261 1,434,244 79,017 - Advances from Federal Home Loan Bank 7,000 8,605 - 8,605 - Federal funds purchased 526,000 526,000 526,000 Securities sold under agreements to repurchase 13,278 13,278 - 13,278 - Subordinated debentures 10,310 10,413 - 10,413 - Accrued interest payable 279 279 279 - - September 30, 2014 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 29,832 $ 29,832 $ 29,832 $ - $ - Securities available for sale 1,140,216 1,140,216 825 1,139,391 - Securities held to maturity 282,933 279,312 - 279,312 - Total securities 1,423,149 1,419,528 825 1,418,703 - Loans receivable: One to four family residential mortgage loans 116,395 111,254 - - 111,254 Commercial and multi-family real estate loans 224,302 234,845 - - 234,845 Agricultural real estate loans 56,071 58,651 - - 58,651 Consumer loans 29,329 29,580 - - 29,580 Commercial operating loans 30,846 25,660 - - 25,660 Agricultural operating loans 42,258 44,398 - - 44,398 Total loans receivable 499,201 504,388 - - 504,388 Federal Home Loan Bank stock 21,245 21,245 - 21,245 - Accrued interest receivable 11,222 11,222 11,222 - - Financial liabilities Noninterest bearing demand deposits 1,126,715 1,126,715 1,126,715 - - Interest bearing demand deposits, savings, and money markets 105,273 105,273 105,273 - - Certificates of deposit 134,553 134,746 - 134,746 - Total deposits 1,366,541 1,366,734 1,231,988 134,746 - Advances from Federal Home Loan Bank 7,000 8,789 - 8,789 - Federal funds purchased 470,000 470,000 - 470,000 - Securities sold under agreements to repurchase 10,411 10,411 - 10,411 - Subordinated debentures 10,310 10,415 - 10,415 - Accrued interest payable 318 318 318 - - The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at June 30, 2015 and September 30, 2014. 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. FEDERAL HOME LOAN BANK (“FHLB”) STOCK The fair value of such stock is assumed to approximate book value since the Company is only able to redeem this stock at par value. ACCRUED INTEREST RECEIVABLE The carrying amount of accrued interest receivable is assumed to approximate the fair value. DEPOSITS The carrying values of non-interest bearing checking deposits, interest bearing checking deposits, savings, and money markets is assumed to approximate fair value, since such deposits are immediately withdrawable without penalty. The fair value of time certificates of deposit was estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities. In accordance with ASC 825, Financial Instruments ADVANCES FROM FHLB The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities. FEDERAL FUNDS PURCHASED The carrying amount of federal funds purchased is assumed to approximate the fair value. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE AND SUBORDINATED DEBENTURES The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings. ACCRUED INTEREST PAYABLE The carrying amount of accrued interest payable is assumed to approximate the fair value. LIMITATIONS It must be noted that fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument. Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time. Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision. Changes in assumptions as well as tax considerations could significantly affect the estimates. Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis. |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended |
Jun. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | NOTE 12. GOODWILL AND INTANGIBLE ASSETS The Company recorded $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. The goodwill associated with this transaction is deductible for tax purposes. As part of the AFS/IBEX transaction, Meta Financial also recognized the following amortizable intangible assets: Intangible Amount Book Amortization Period (Years) Method Trademark $ 540 15 Straight Line Non-Compete $ 260 3 Straight Line Customer Relationships $ 7,240 30 Accelerated Other $ 173 Varied Straight Line The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2015 and 2014 are as follows: Specialty Finance Goodwill Specialty Finance Intangibles Meta Payment Systems ® Patents Total (Dollars in Thousands) Balance as of September 30, 2014 $ - $ - $ 2,588 $ 2,588 Acquisitions during the period 11,578 8,213 - 19,791 Patent costs capitalized during the period - - 151 151 Amortization during the period - (791 ) (68 ) (859 ) Balance as of June 30, 2015 $ 11,578 $ 7,422 $ 2,671 $ 21,671 Specialty Finance Goodwill Specialty Finance Intangibles Meta Payment Systems ® Patents Total (Dollars in Thousands) Balance as of September 30, 2013 $ - $ - $ 2,339 $ 2,339 Patents costs capitalized during the period - - 202 202 Amortization during the period - - (56 ) (56 ) Balance as of June 30, 2014 $ - $ - $ 2,485 $ 2,485 The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There was no impairment to intangible assets during the nine months ended June 30, 2015 and 2014. The annual goodwill impairment test will be conducted at September 30, 2015. |
INCOME TAXES
INCOME TAXES | 9 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 13. INCOME TAXES The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. Total income tax expense differs from the statutory federal income tax rate for the nine months ended June 30, 2015 and 2014 as follows: Income Tax Expense (Benefit) As Of June 30, 2015 June 30, 2014 (Dollars in Thousands) Income tax expense at federal tax rate $ 5,229 $ 5,197 Increase (decrease) resulting from: State income taxes net of federal benefit 477 489 Nontaxable buildup in cash surrender value (444 ) (318 ) Incentive stock option expense (45 ) (200 ) Tax exempt income (3,606 ) (2,625 ) Nondeductible expenses 124 82 Other, net (212 ) (125 ) Total income tax expense (benefit) $ 1,523 $ 2,500 The Company’s effective tax rate for the nine months ended June 30, 2015 decreased as compared to the nine months ended June 30, 2014 primarily due to the level of tax exempt income as compared to overall pre-tax income. |
REGULATORY MATTERS AND SETTLEME
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS | 9 Months Ended |
Jun. 30, 2015 | |
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS [Abstract] | |
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS | NOTE 14. REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS On July 21, 2011, pursuant to the Dodd Frank Act, the OTS was integrated into the OCC and the functions of the OTS related to thrift holding companies were transferred to the Federal Reserve. The OCC is responsible for the ongoing examination, supervision and regulation of the Bank. The Dodd Frank Act maintains the existence of the federal savings association charter and the HOLA, the primary statute governing federal savings banks. The Federal Reserve is now responsible for the ongoing examination, supervision and regulation of the Company. A consent order that had been in effect was terminated on May 21, 2015 by the Federal Reserve. Prior to passage of the Dodd-Frank Act, the OTS had issued supervisory directives to the Bank, consent orders to the Bank and the Company, and had taken other regulatory action to require the Bank to reimburse certain consumers in connection with a credit program that was discontinued. All supervisory directives have been terminated, and on August 7, 2014, the OCC terminated the Bank’s Consent Order. On January 5, 2015, the Federal Deposit Insurance Corporation (“FDIC”) published industry guidance (the “Guidance”) in the form of Frequently Asked Questions with respect to the categorization of deposit liabilities as "brokered" deposits. 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 the Guidance will have a material adverse impact on the Company’s business operations or its ability to further grow deposits. 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. Recently, the FDIC proposed a rule which would change the method of calculating the assessment fees for FDIC – insured institutions. The Bank is currently assessing the impact of the proposed assessment rule. |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 9 Months Ended |
Jun. 30, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 15. SUBSEQUENT EVENTS On July 16, 2015, Meta entered into a definitive agreement with Fort Knox Financial Services Corporation and its subsidiary, Tax Product Services LLC, to acquire substantially all the assets and assume specified liabilities of the companies for approximately $50 million, subject to adjustment, to be paid approximately half in Meta common stock and half in cash. The consummation of the transaction is subject to a number of closing conditions, including, but not limited to, MetaBank obtaining adequate financing to fund the cash portion of the purchase price and the receipt of certain third party and governmental approvals. Fort Knox, through its Refund Advantage brand, is a leading provider of professional tax refund-transfer software used by independent Electronic Return Originators in over 10,000 locations nationwide and processes more than one million refund-transfers per year. Fort Knox offers tax refund transfer solutions through ACH direct deposit, check, and prepaid card. The Fort Knox team of professionals based in Louisville, KY, will join MetaBank as part of the transaction. Meta entered into separate securities purchase agreements between June 25 and July 16, 2015 under which the Company agreed to sell to several institutional investors an aggregate of approximately 535,000 shares of its common stock, for total consideration of approximately $26 million, contingent on completion of aforementioned acquisition. Management has evaluated subsequent events. Other than noted above, there were no material subsequent events that would require recognition or disclosure in our consolidated financial statements as of and for the quarter ended June 30, 2015. |
NEW ACCOUNTING PRONOUNCEMENTS (
NEW ACCOUNTING PRONOUNCEMENTS (Policies) | 9 Months Ended |
Jun. 30, 2015 | |
NEW ACCOUNTING PRONOUNCEMENTS [Abstract] | |
New Accounting Pronouncements | Accounting Standards Update (“ASU”) No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure This ASU provides guidance on when a loan should be derecognized and collateral assets recognized during an in substance repossession or foreclosure. The objective of this ASU is to eliminate diversity in practice related to the topic. The ASU states creditors are considered to have physical possession of residential real estate property when either the creditor obtains title for the property or the borrower transfers all interest in the property through a deed or other legal agreement. When physical possession occurs, the loan should be derecognized and collateral assets recognized. This update is effective for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue including, identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 2014-14, Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure This ASU provides guidance on how to account for certain foreclosed government-guaranteed mortgage loans. The creditor should recognize a separate other receivable in the amount the creditor expects to recover from the guarantor. This update is effective for annual and interim periods beginning after December 15, 2014, and is not expected to have a material impact on the Company’s consolidated financial statements. ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items This ASU eliminates the concept of extraordinary items from U.S. GAAP. The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence. This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements. ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities. This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements. |
ACQUISITION (Tables)
ACQUISITION (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
ACQUISITION [Abstract] | |
Approximate Fair Value of Assets Acquired and Liabilities Assumed | The following table represents the approximate fair value of assets acquired and liabilities assumed of AFS/IBEX on the consolidated balance sheet as of December 2, 2014: As of December 2, 2014 (Dollars in Thousands) Fair value of consideration paid Cash $ 99,255 Total consideration paid 99,255 Fair value of assets acquired Cash and cash equivalents 6,947 Loans receivable, net 74,120 Prepaid assets 156 Furniture and equipment, net 449 Intangible assets 8,213 Other assets 6 Total assets 89,891 Fair value of liabilities assumed Accrued expenses and other liabilities 2,214 Total liabilities assumed 2,214 Fair value of net assets acquired 87,677 Goodwill resulting from acquisition $ 11,578 |
CREDIT DISCLOSURES (Tables)
CREDIT DISCLOSURES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
CREDIT DISCLOSURES [Abstract] | |
Schedule of Loan Receivables | Loans receivable at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 September 30, 2014 (Dollars in Thousands) 1-4 Family Real Estate $ 118,716 $ 116,395 Commercial and Multi-Family Real Estate 278,910 224,302 Agricultural Real Estate 64,173 56,071 Consumer 32,968 29,329 Commercial Operating 30,004 30,846 Agricultural Operating 41,511 42,258 Premium Finance 91,740 - Total Loans Receivable 658,022 499,201 Less: Allowance for Loan Losses (6,232 ) (5,397 ) Net Deferred Loan Origination Fees (260 ) (797 ) Total Loans Receivable, Net $ 651,530 $ 493,007 |
Activity in Allowance for Loan Losses | Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three and nine month periods ended June 30, 2015 and 2014 is as follows: 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2015 Allowance for loan losses: Beginning balance $ 522 $ 1,218 $ 265 $ 78 $ 101 $ 667 $ 168 $ 2,697 $ 5,716 Provision (recovery) for loan losses 8 34 164 5 9 1,940 100 (1,560 ) 700 Charge offs - - - - - (150 ) (96 ) - (246 ) Recoveries - - - - - - 62 - 62 Ending balance $ 530 $ 1,252 $ 429 $ 83 $ 110 $ 2,457 $ 234 $ 1,137 $ 6,232 Nine Months Ended June 30, 2015 Allowance for loan losses: Beginning balance $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Provision (recovery) for loan losses 23 (115 ) 166 5 14 1,888 340 (980 ) 1,341 Charge offs (45 ) (214 ) - - - (150 ) (194 ) - (603 ) Recoveries - 6 - - 3 - 88 - 97 Ending balance $ 530 $ 1,252 $ 429 $ 83 $ 110 $ 2,457 $ 234 $ 1,137 $ 6,232 Ending balance: individually evaluated for impairment - 265 - - - 2,161 - - 2,426 Ending balance: collectively evaluated for impairment 530 987 429 83 110 296 234 1,137 3,806 Total $ 530 $ 1,252 $ 429 $ 83 $ 110 $ 2,457 $ 234 $ 1,137 $ 6,232 Loans: Ending balance: individually evaluated for impairment 124 1,397 - - 13 5,869 - - 7,403 Ending balance: collectively evaluated for impairment 118,592 277,513 64,173 32,968 29,991 35,642 91,740 - 650,619 Total $ 118,716 $ 278,910 $ 64,173 $ 32,968 $ 30,004 $ 41,511 $ 91,740 $ - $ 658,022 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Three Months Ended June 30, 2014 Allowance for loan losses: Beginning balance $ 287 $ 1,666 $ 235 $ 71 $ 66 $ 478 $ - $ 1,769 $ 4,572 Provision (recovery) for loan losses (74 ) 23 112 6 14 277 - (58 ) 300 Charge offs - - - - - - - - - Recoveries 2 19 - - - 2 - - 23 Ending balance $ 215 $ 1,708 $ 347 $ 77 $ 80 $ 757 $ - $ 1,711 $ 4,895 Nine Months Ended June 30, 2014 Allowance for loan losses: Beginning balance $ 333 $ 1,937 $ 112 $ 74 $ 49 $ 267 $ - $ 1,158 $ 3,930 Provision (recovery) for loan losses (120 ) (576 ) 235 3 31 474 - 553 600 Charge offs - - - - - - - - - Recoveries 2 347 - - - 16 - - 365 Ending balance $ 215 $ 1,708 $ 347 $ 77 $ 80 $ 757 $ - $ 1,711 $ 4,895 Ending balance: individually evaluated for impairment - 358 - - - - - - 358 Ending balance: collectively evaluated for impairment 215 1,350 347 77 80 757 - 1,711 4,537 Total $ 215 $ 1,708 $ 347 $ 77 $ 80 $ 757 $ - $ 1,711 $ 4,895 Loans: Ending balance: individually evaluated for impairment 389 5,678 - - 28 - - - 6,095 Ending balance: collectively evaluated for impairment 108,324 211,226 56,945 29,379 26,655 38,958 - - 471,487 Total $ 108,713 $ 216,904 $ 56,945 $ 29,379 $ 26,683 $ 38,958 $ - $ - $ 477,582 |
Asset Classification of Loans Excluding Loans Held for Sale | The asset classification of loans at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 118,465 $ 275,549 $ 37,023 $ 32,968 $ 29,019 $ 25,904 $ 91,740 $ 610,668 Watch 216 2,412 24,810 - 837 3,771 - 32,046 Special Mention 10 - 877 - - 1,716 - 2,603 Substandard 25 949 1,463 - 148 10,120 - 12,705 Doubtful - - - - - - - - $ 118,716 $ 278,910 $ 64,173 $ 32,968 $ 30,004 $ 41,511 $ 91,740 $ 658,022 September 30, 2014 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 115,700 $ 222,074 $ 52,364 $ 29,329 $ 30,709 $ 32,261 $ - $ 482,437 Watch 369 852 273 - 137 369 - 2,000 Special Mention 81 96 1,660 - - 63 - 1,900 Substandard 245 1,280 1,774 - - 9,565 - 12,864 Doubtful - - - - - - - - $ 116,395 $ 224,302 $ 56,071 $ 29,329 $ 30,846 $ 42,258 $ - $ 499,201 |
Summary of Past Due Loans | Past due loans at June 30, 2015 and September 30, 2014 are as follows: June 30, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 444 $ - $ - $ 444 $ 118,247 $ 25 $ 118,716 Commercial and Multi-Family Real Estate - - - - 277,987 923 278,910 Agricultural Real Estate 24,770 - - 24,770 39,403 - 64,173 Consumer 135 18 5 158 32,810 - 32,968 Commercial Operating - - - - 30,004 - 30,004 Agricultural Operating 916 116 - 1,032 34,610 5,869 41,511 Premium Finance 2,320 447 681 3,448 88,292 - 91,740 Total $ 28,585 $ 581 $ 686 $ 29,852 $ 621,353 $ 6,817 $ 658,022 September 30, 2014 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 111 $ 37 $ - $ 148 $ 115,966 $ 281 $ 116,395 Commercial and Multi-Family Real Estate - - - - 223,990 312 224,302 Agricultural Real Estate - - - - 56,071 - 56,071 Consumer 2 12 54 68 29,261 - 29,329 Commercial Operating - - - - 30,846 - 30,846 Agricultural Operating - - - - 41,918 340 42,258 Total $ 113 $ 49 $ 54 $ 216 $ 498,052 $ 933 $ 499,201 |
Impaired Loans | Impaired loans at June 30, 2015 and September 30, 2014 are as follows: Recorded Balance Unpaid Principal Balance Specific Allowance June 30, 2015 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 124 $ 124 $ - Commercial and Multi-Family Real Estate 449 449 - Agricultural Real Estate - - - Consumer - - - Commercial Operating 13 13 - Agricultural Operating - - - Premium Finance - - - Total $ 586 $ 586 $ - Loans with a specific valuation allowance 1-4 Family Real Estate $ - $ - $ - Commercial and Multi-Family Real Estate 948 948 265 Agricultural Real Estate - - - Consumer - - - Commercial Operating - - - Agricultural Operating 5,869 5,869 2,161 Premium Finance - - - Total $ 6,817 $ 6,817 $ 2,426 Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2014 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 142 $ 142 $ - Commercial and Multi-Family Real Estate 4,375 4,375 - Agricultural Real Estate - - - Consumer - - - Commercial Operating 22 22 - Agricultural Operating - - - Total $ 4,539 $ 4,539 $ - Loans with a specific valuation allowance 1-4 Family Real Estate $ 245 $ 245 $ 23 Commercial and Multi-Family Real Estate 1,280 1,280 350 Agricultural Real Estate - - - Consumer - - - Commercial Operating - - - Agricultural Operating 340 340 340 Total $ 1,865 $ 1,865 $ 713 The following table provides the average recorded investment in impaired loans for the three and nine month periods ended June 30, 2015 and 2014. Three Months Ended June 30, Nine Months Ended June 30, 2015 2014 2015 2014 Average Recorded Investment Average Recorded Investment Average Recorded Investment Average Recorded Investment (Dollars in Thousands) 1-4 Family Real Estate $ 162 $ 579 $ 276 $ 636 Commercial and Multi-Family Real Estate 1,406 5,694 2,358 6,811 Agricultural Real Estate - - - - Consumer 1 - - - Commercial Operating 15 29 18 37 Agricultural Operating 6,046 - 2,871 - Premium Finance - - - - Total $ 7,630 $ 6,302 $ 5,522 $ 7,484 |
EARNINGS PER COMMON SHARE ("E28
EARNINGS PER COMMON SHARE ("EPS") (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
EARNINGS PER COMMON SHARE ("EPS") [Abstract] | |
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS | A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three and nine months ended June 30, 2015 and 2014 is presented below. Three Months Ended June 30, 2015 2014 (Dollars in Thousands, Except Share and Per Share Data) Earnings Net Income $ 4,640 $ 4,204 Basic EPS Weighted average common shares outstanding 6,942,486 6,132,169 Less weighted average nonvested shares 3,922 4,000 Weighted average common shares outstanding 6,938,564 6,128,169 Earnings Per Common Share Basic $ 0.67 $ 0.69 Diluted EPS Weighted average common shares outstanding for basic earnings per common share 6,938,564 6,128,169 Add dilutive effect of assumed exercises of stock options, net of tax benefits 74,060 77,201 Weighted average common and dilutive potential common shares outstanding 7,012,624 6,205,370 Earnings Per Common Share Diluted $ 0.66 $ 0.68 Nine Months Ended June 30, 2015 2014 (Dollars in Thousands, Except Share and Per Share Data) Earnings Net Income $ 13,416 $ 12,349 Basic EPS Weighted average common shares outstanding 6,555,415 6,109,955 Less weighted average unallocated ESOP and nonvested shares 4,193 4,401 Weighted average common shares outstanding 6,551,222 6,105,554 Earnings Per Common Share Basic $ 2.05 $ 2.02 Diluted EPS Weighted average common shares outstanding for basic earnings per common share 6,551,222 6,105,554 Add dilutive effect of assumed exercises of stock options, net of tax benefits 65,228 91,409 Weighted average common and dilutive potential common shares outstanding 6,616,450 6,196,963 Earnings Per Common Share Diluted $ 2.03 $ 1.99 |
SECURITIES (Tables)
SECURITIES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
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, 2015 and September 30, 2014 are presented below. Available For Sale At June 30, 2015 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 19,209 $ 18 $ (2,235 ) $ 16,992 Small business administration securities 35,967 1,183 - 37,150 Non-bank qualified obligations of states and political subdivisions 512,311 1,918 (6,527 ) 507,702 Mortgage-backed securities 602,672 1,512 (7,208 ) 596,976 Total debt securities 1,170,159 4,631 (15,970 ) 1,158,820 Common equities and mutual funds 640 333 (7 ) 966 Total available for sale securities $ 1,170,799 $ 4,964 $ (15,977 ) $ 1,159,786 At September 30, 2014 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 48,747 $ 191 $ (2,009 ) $ 46,929 Small business administration securities 66,541 543 (72 ) 67,012 Non-bank qualified obligations of states and political subdivisions 368,897 2,494 (3,811 ) 367,580 Mortgage-backed securities 663,690 3,519 (9,339 ) 657,870 Total debt securities 1,147,875 6,747 (15,231 ) 1,139,391 Common equities and mutual funds 539 291 (5 ) 825 Total available for sale securities $ 1,148,414 $ 7,038 $ (15,236 ) $ 1,140,216 |
Securities Held to Maturity | Held to Maturity At June 30, 2015 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,303 $ 26 $ (453 ) $ 18,876 Non-bank qualified obligations of states and political subdivisions 243,275 668 (3,250 ) 240,693 Mortgage-backed securities 69,057 - (1,637 ) 67,420 Total held to maturity securities $ 331,635 $ 694 $ (5,340 ) $ 326,989 At September 30, 2014 AMORTIZED GROSS GROSS FAIR (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,304 $ 48 $ (372 ) $ 18,980 Non-bank qualified obligations of states and political subdivisions 193,595 894 (2,329 ) 192,160 Mortgage-backed securities 70,034 - (1,862 ) 68,172 Total held to maturity securities $ 282,933 $ 942 $ (4,563 ) $ 279,312 |
Trust Preferred Securities Included in Securities Available for Sale | Included in securities available for sale are trust preferred securities as follows: At June 30, 2015 Issuer (1) Amortized Cost Fair Value Unrealized Gain (Loss) S&P Credit Rating Moody's Credit Rating (Dollars in Thousands) Key Corp. Capital I $ 4,986 $ 4,220 $ (766 ) BB+ Baa2 Huntington Capital Trust II SE 4,979 4,025 (954 ) BB Baa2 PNC Capital Trust 4,964 4,449 (515 ) BBB- Baa1 Total $ 14,929 $ 12,694 $ (2,235 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. At September 30, 2014 Issuer (1) Amortized Cost Fair Value Unrealized Gain (Loss) S&P Credit Rating Moody's Credit Rating (Dollars in Thousands) Key Corp. Capital I $ 4,985 $ 4,400 $ (585 ) BB+ Baa3 Huntington Capital Trust II SE 4,977 4,300 (677 ) BB Baa3 PNC Capital Trust 4,962 4,400 (562 ) BBB- Baa2 Wells Fargo (Corestates Capital) Trust 4,444 4,400 (44 ) BBB+ A3 Total $ 19,368 $ 17,500 $ (1,868 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. |
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position | Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at June 30, 2015 and September 30, 2014, are as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ - $ - $ 12,694 $ (2,235 ) $ 12,694 $ (2,235 ) Non-bank qualified obligations of states and political subdivisions 326,156 (4,846 ) 39,677 (1,681 ) 365,833 (6,527 ) Mortgage-backed securities 457,327 (5,548 ) 66,286 (1,660 ) 523,613 (7,208 ) Total debt securities 783,483 (10,394 ) 118,657 (5,576 ) 902,140 (15,970 ) Common equities and mutual funds - - 122 (7 ) 122 (7 ) Total available for sale securities $ 783,483 $ (10,394 ) $ 118,779 $ (5,583 ) $ 902,262 $ (15,977 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2014 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 6,073 $ (47 ) $ 25,359 $ (1,962 ) $ 31,432 $ (2,009 ) Small Business Administration securities 8,454 (72 ) - - 8,454 (72 ) Non-bank qualified obligations of states and political subdivisions 27,062 (70 ) 191,146 (3,741 ) 218,208 (3,811 ) Mortgage-backed securities 238,980 (1,248 ) 234,347 (8,091 ) 473,327 (9,339 ) Total debt securities 280,569 (1,437 ) 450,852 (13,794 ) 731,421 (15,231 ) Common equities and mutual funds 123 (5 ) - - 123 (5 ) Total available for sale securities $ 280,692 $ (1,442 ) $ 450,852 $ (13,794 ) $ 731,544 $ (15,236 ) |
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position | Held To Maturity LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At June 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 8,237 $ (149 ) $ 8,817 $ (304 ) $ 17,054 $ (453 ) Non-bank qualified obligations of states and political subdivisions 208,411 (3,145 ) 3,412 (105 ) 211,823 (3,250 ) Mortgage-backed securities 5,486 (95 ) 61,934 (1,542 ) 67,420 (1,637 ) Total held to maturity securities $ 222,134 $ (3,389 ) $ 74,163 $ (1,951 ) $ 296,297 $ (5,340 ) LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2014 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 1,056 $ (2 ) $ 14,079 $ (370 ) $ 15,135 $ (372 ) Non-bank qualified obligations of states and political subdivisions - - 147,949 (2,329 ) 147,949 (2,329 ) Mortgage-backed securities - - 68,172 (1,862 ) 68,172 (1,862 ) Total held to maturity securities $ 1,056 $ (2 ) $ 230,200 $ (4,561 ) $ 231,256 $ (4,563 ) |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At June 30, 2015 (Dollars in Thousands) Due in one year or less $ 3,000 $ 3,008 Due after one year through five years 1,179 1,205 Due after five years through ten years 330,864 331,747 Due after ten years 232,444 225,884 567,487 561,844 Mortgage-backed securities 602,672 596,976 Common equities and mutual funds 640 966 Total available for sale securities $ 1,170,799 $ 1,159,786 AMORTIZED COST FAIR VALUE September 30, 2014 (Dollars in Thousands) Due in one year or less $ 2,999 $ 3,048 Due after one year through five years 9,922 10,079 Due after five years through ten years 285,413 285,698 Due after ten years 185,851 182,696 484,185 481,521 Mortgage-backed securities 663,690 657,870 Common equities and mutual funds 539 825 Total available for sale securities $ 1,148,414 $ 1,140,216 Held To Maturity AMORTIZED COST FAIR VALUE At June 30, 2015 (Dollars in Thousands) Due in one year or less $ 95 $ 95 Due after one year through five years 6,028 5,986 Due after five years through ten years 126,463 124,618 Due after ten years 129,992 128,870 262,578 259,569 Mortgage-backed securities 69,057 67,420 Total held to maturity securities $ 331,635 $ 326,989 AMORTIZED COST FAIR VALUE September 30, 2014 (Dollars in Thousands) Due in one year or less $ 347 $ 348 Due after one year through five years 4,726 4,718 Due after five years through ten years 91,532 89,984 Due after ten years 116,294 116,090 212,899 211,140 Mortgage-backed securities 70,034 68,172 Total held to maturity securities $ 282,933 $ 279,312 |
STOCK OPTION PLAN (Tables)
STOCK OPTION PLAN (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
STOCK OPTION PLAN [Abstract] | |
Activity of Options | The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans for the nine months ended June 30, 2015: Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (Yrs) Aggregate Intrinsic Value (Dollars in Thousands, Except Share and Per Share Data) Options outstanding, September 30, 2014 235,766 $ 25.20 3.78 $ 2,507 Granted - - - - Exercised (15,146 ) 25.06 - 248 Forfeited or expired - - - - Options outstanding, June 30, 2015 220,620 $ 25.21 3.01 $ 3,902 Options exercisable, June 30, 2015 220,620 $ 25.21 3.01 $ 3,902 |
Activity of Nonvested (Restricted) Shares | Number of Shares Weighted Average Fair Value at Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2014 4,000 $ 28.61 Granted 5,680 35.62 Vested (5,450 ) 33.62 Forfeited or expired - - Nonvested shares outstanding, June 30, 2015 4,230 $ 31.55 |
SEGMENT INFORMATION (Tables)
SEGMENT INFORMATION (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
SEGMENT INFORMATION [Abstract] | |
Segment Information of Entity | The following tables present segment data for the Company for the three and nine months ended June 30, 2015 and 2014, respectively. Retail Banking Meta Payment Systems ® All Others Total Three Months Ended June 30, 2015 Interest income $ 7,780 $ 5,667 $ 1,807 15,254 Interest expense 393 47 153 593 Net interest income (expense) 7,387 5,620 1,654 14,661 Provision (recovery) for loan losses 600 - 100 700 Non-interest income 1,227 13,808 389 15,424 Non-interest expense 6,497 16,431 1,545 24,473 Income (loss) before income tax expense (benefit) 1,517 2,997 398 4,912 Income tax expense (benefit) 136 132 4 272 Net income (loss) $ 1,381 $ 2,865 $ 394 $ 4,640 Inter-segment revenue (expense) $ (4,126 ) 4,126 $ - $ - Total assets 766,129 1,453,771 90,083 2,309,983 Total deposits 224,982 1,294,757 (6,532 ) 1,513,207 Retail Banking Meta Payment Systems ® All Others Total Nine Months Ended June 30, 2015 Interest income $ 25,096 $ 15,837 $ 4,311 $ 45,244 Interest expense 1,181 138 408 1,727 Net interest income (expense) 23,915 15,699 3,903 43,517 Provision (recovery) for loan losses 1,000 - 341 1,341 Non-interest income 1,546 40,468 1,054 43,068 Non-interest expense 17,657 48,164 4,484 70,305 Income (loss) before income tax expense (benefit) 6,804 8,003 132 14,939 Income tax expense (benefit) 676 1,030 (183 ) 1,523 Net income (loss) $ 6,128 $ 6,973 $ 315 $ 13,416 Inter-segment revenue (expense) $ (12,106 ) $ 12,106 $ - $ - Total assets 766,129 1,453,771 90,083 2,309,983 Total deposits 224,982 1,294,757 (6,532 ) 1,513,207 Retail Banking Meta Payment Systems ® All Others Total Three Months Ended June 30, 2014 Interest income $ 8,223 $ 4,343 $ - $ 12,566 Interest expense 499 27 112 638 Net interest income (expense) 7,724 4,316 (112 ) 11,928 Provision (recovery) for loan losses 300 - - 300 Non-interest income 732 11,749 - 12,481 Non-interest expense 4,852 13,904 81 18,837 Income (loss) before income tax expense (benefit) 3,304 2,161 (193 ) 5,272 Income tax expense (benefit) 653 495 (80 ) 1,068 Net income (loss) $ 2,651 $ 1,666 $ (113 ) $ 4,204 Inter-segment revenue (expense) $ 2,976 (2,976 ) $ - $ - Total assets 678,116 1,241,967 3,250 1,923,333 Total deposits 254,215 1,098,262 (6,418 ) 1,346,059 Retail Banking Meta Payment Systems ® All Others Total Nine Months Ended June 30, 2014 Interest income $ 23,481 $ 12,309 $ - $ 35,790 Interest expense 1,410 84 337 1,831 Net interest income (expense) 22,071 12,225 (337 ) 33,959 Provision (recovery) for loan losses 600 - - 600 Non-interest income 2,540 36,591 - 39,131 Non-interest expense 15,306 41,619 716 57,641 Income (loss) before income tax expense (benefit) 8,705 7,197 (1,053 ) 14,849 Income tax expense (benefit) 1,489 1,400 (389 ) 2,500 Net income (loss) $ 7,216 $ 5,797 $ (664 ) $ 12,349 Inter-segment revenue (expense) $ 9,602 $ (9,602 ) $ - $ - Total assets 678,116 1,241,967 3,250 1,923,333 Total deposits 254,215 1,098,262 (6,418 ) 1,346,059 The following tables present gross profit data for MPS for the three and nine months ended June 30, 2015 and 2014. Three Months Ended June 30, 2015 2014 Interest income $ 5,667 $ 4,343 Interest expense 47 27 Net interest income 5,620 4,316 Provision (recovery) for loan losses - - Non-interest income 13,808 11,749 Card processing expense 3,863 3,843 Gross Profit 15,565 12,222 Other non-interest expense 12,568 10,061 Income (loss) before income tax expense (benefit) 2,997 2,161 Income tax expense (benefit) 132 495 Net Income (Loss) $ 2,865 $ 1,666 Nine Months Ended June 30, 2015 2014 Interest income $ 15,837 $ 12,309 Interest expense 138 84 Net interest income 15,699 12,225 Provision (recovery) for loan losses - - Non-interest income 40,468 36,591 Card processing expense 12,358 11,643 Gross Profit 43,809 37,173 Other non-interest expense 35,806 29,976 Income (loss) before income tax expense (benefit) 8,003 7,197 Income tax expense 1,030 1,400 Net Income $ 6,973 $ 5,797 |
FAIR VALUE MEASUREMENTS (Tables
FAIR VALUE MEASUREMENTS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
FAIR VALUE MEASUREMENTS [Abstract] | |
Summary of Fair Values of Securities Available for Sale and Held to Maturity | The following table summarizes the fair values of securities available for sale and held to maturity at June 30, 2015 and September 30, 2014. 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, 2015 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Trust preferred and corporate securities $ 16,992 $ - $ 16,992 $ - $ - $ - $ - $ - Small business administration securities 37,150 - 37,150 - - - - - Obligations of states and political subdivisions - - - - 18,876 - 18,876 - Non-bank qualified obligations of states and political subdivisions 507,702 - 507,702 - 240,693 - 240,693 - Mortgage-backed securities 596,976 - 596,976 - 67,420 - 67,420 - Total debt securities 1,158,820 - 1,158,820 - 326,989 - 326,989 - Common equities and mutual funds 966 966 - - - - - - Total securities $ 1,159,786 $ 966 $ 1,158,820 $ - $ 326,989 $ - $ 326,989 $ - Fair Value at September 30, 2014 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Trust preferred and corporate securities $ 46,929 $ - $ 46,929 $ - $ - $ - $ - $ - Small business administration securities 67,012 - 67,012 - - - - - Obligations of states and political subdivisions - - - - 18,980 - 18,980 - Non-bank qualified obligations of states and political subdivisions 367,580 - 367,580 - 192,160 - 192,160 - Mortgage-backed securities 657,870 - 657,870 - 68,172 - 68,172 - Total debt securities 1,139,391 - 1,139,391 - 279,312 - 279,312 - Common equities and mutual funds 825 825 - - - - - - Total securities $ 1,140,216 $ 825 $ 1,139,391 $ - $ 279,312 $ - $ 279,312 $ - |
Assets Measured at Fair Value on Nonrecurring Basis | The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of June 30, 2015 and September 30, 2014. Fair Value at June 30, 2015 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net One to four family residential mortgage loans $ - $ - $ - $ - Commercial and multi-family real estate loans 683 - - 683 Agricultural operating loans 3,708 - - 3,708 Total Impaired Loans 4,391 - - 4,391 Foreclosed Assets, net 54 - - 54 Total $ 4,445 $ - $ - $ 4,445 Fair Value at September 30, 2014 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net One to four family residential mortgage loans $ 222 $ - $ - $ 222 Commercial and multi-family real estate loans 930 - - 930 Total Impaired Loans 1,152 - - 1,152 Foreclosed Assets, net 15 - - 15 Total $ 1,167 $ - $ - $ 1,167 |
Quantitative Information about Level 3 Fair Value Measurements | Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at June 30, 2015 Valuation Technique Unobservable Input Impaired Loans, net $ 4,391 Market approach Appraised values (1) Foreclosed Assets, net 54 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. Quantitative Information About Level 3 Fair Value Measurements (Dollars in Thousands) Fair Value at September 30, 2014 Valuation Technique Unobservable Input Impaired Loans, net $ 1,152 Market approach Appraised values (1) Foreclosed Assets, net 15 Market approach Appraised values (1) (1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. |
Carrying Amount and Estimated Fair Value of Financial Instruments | The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at June 30, 2015 and September 30, 2014. June 30, 2015 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 20,405 $ 20,405 $ 20,405 $ - $ - Securities available for sale 1,159,786 1,159,786 966 1,158,820 - Securities held to maturity 331,635 326,989 - 326,989 - Total securities 1,491,421 1,486,775 966 1,485,809 - Loans receivable: One to four family residential mortgage loans 118,716 117,325 - - 117,325 Commercial and multi-family real estate loans 278,910 281,441 - - 281,441 Agricultural real estate loans 64,173 65,877 - - 65,877 Consumer loans 32,968 34,131 - - 34,131 Commercial operating loans 30,004 24,927 - - 24,927 Agricultural operating loans 41,511 39,191 - - 39,191 Premium finance 91,740 94,068 - - 94,068 Total loans receivable 658,022 656,960 - - 656,960 Federal Home Loan Bank stock 23,850 23,850 - 23,850 - Accrued interest receivable 14,235 14,235 14,235 - - Financial liabilities Noninterest bearing demand deposits 1,321,213 1,321,213 1,321,213 - - Interest bearing demand deposits, savings, and money markets 113,031 113,031 113,031 - - Certificates of deposit 78,963 79,017 - 79,017 - Total deposits 1,513,207 1,513,261 1,434,244 79,017 - Advances from Federal Home Loan Bank 7,000 8,605 - 8,605 - Federal funds purchased 526,000 526,000 526,000 Securities sold under agreements to repurchase 13,278 13,278 - 13,278 - Subordinated debentures 10,310 10,413 - 10,413 - Accrued interest payable 279 279 279 - - September 30, 2014 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 29,832 $ 29,832 $ 29,832 $ - $ - Securities available for sale 1,140,216 1,140,216 825 1,139,391 - Securities held to maturity 282,933 279,312 - 279,312 - Total securities 1,423,149 1,419,528 825 1,418,703 - Loans receivable: One to four family residential mortgage loans 116,395 111,254 - - 111,254 Commercial and multi-family real estate loans 224,302 234,845 - - 234,845 Agricultural real estate loans 56,071 58,651 - - 58,651 Consumer loans 29,329 29,580 - - 29,580 Commercial operating loans 30,846 25,660 - - 25,660 Agricultural operating loans 42,258 44,398 - - 44,398 Total loans receivable 499,201 504,388 - - 504,388 Federal Home Loan Bank stock 21,245 21,245 - 21,245 - Accrued interest receivable 11,222 11,222 11,222 - - Financial liabilities Noninterest bearing demand deposits 1,126,715 1,126,715 1,126,715 - - Interest bearing demand deposits, savings, and money markets 105,273 105,273 105,273 - - Certificates of deposit 134,553 134,746 - 134,746 - Total deposits 1,366,541 1,366,734 1,231,988 134,746 - Advances from Federal Home Loan Bank 7,000 8,789 - 8,789 - Federal funds purchased 470,000 470,000 - 470,000 - Securities sold under agreements to repurchase 10,411 10,411 - 10,411 - Subordinated debentures 10,310 10,415 - 10,415 - Accrued interest payable 318 318 318 - - |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Summary of Amortizable Intangible Assets | As part of the AFS/IBEX transaction, Meta Financial also recognized the following amortizable intangible assets: Intangible Amount Book Amortization Period (Years) Method Trademark $ 540 15 Straight Line Non-Compete $ 260 3 Straight Line Customer Relationships $ 7,240 30 Accelerated Other $ 173 Varied Straight Line |
Changes in Carrying Amount of Goodwill and Intangible Assets | The changes in the carrying amount of the Company’s goodwill and intangible assets for the nine months ended June 30, 2015 and 2014 are as follows: Specialty Finance Goodwill Specialty Finance Intangibles Meta Payment Systems ® Patents Total (Dollars in Thousands) Balance as of September 30, 2014 $ - $ - $ 2,588 $ 2,588 Acquisitions during the period 11,578 8,213 - 19,791 Patent costs capitalized during the period - - 151 151 Amortization during the period - (791 ) (68 ) (859 ) Balance as of June 30, 2015 $ 11,578 $ 7,422 $ 2,671 $ 21,671 Specialty Finance Goodwill Specialty Finance Intangibles Meta Payment Systems ® Patents Total (Dollars in Thousands) Balance as of September 30, 2013 $ - $ - $ 2,339 $ 2,339 Patents costs capitalized during the period - - 202 202 Amortization during the period - - (56 ) (56 ) Balance as of June 30, 2014 $ - $ - $ 2,485 $ 2,485 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 9 Months Ended |
Jun. 30, 2015 | |
INCOME TAXES [Abstract] | |
Reconciliation of Total Income Tax Expense | Total income tax expense differs from the statutory federal income tax rate for the nine months ended June 30, 2015 and 2014 as follows: Income Tax Expense (Benefit) As Of June 30, 2015 June 30, 2014 (Dollars in Thousands) Income tax expense at federal tax rate $ 5,229 $ 5,197 Increase (decrease) resulting from: State income taxes net of federal benefit 477 489 Nontaxable buildup in cash surrender value (444 ) (318 ) Incentive stock option expense (45 ) (200 ) Tax exempt income (3,606 ) (2,625 ) Nondeductible expenses 124 82 Other, net (212 ) (125 ) Total income tax expense (benefit) $ 1,523 $ 2,500 |
ACQUISITION (Details)
ACQUISITION (Details) $ in Thousands | Dec. 02, 2014USD ($)Agency | Jun. 30, 2015USD ($) | Sep. 30, 2014USD ($) |
Business Acquisition [Line Items] | |||
Allowance for credit losses | $ 0 | ||
Fair value of liabilities assumed [Abstract] | |||
Goodwill resulting from acquisition | $ 11,578 | $ 0 | |
AFS/IBEX Financial Services Inc [Member] | |||
Business Acquisition [Line Items] | |||
Number of independent insurance agencies | Agency | 1,300 | ||
Number of Agency Offices | Agency | 2 | ||
Fair value of consideration paid [Abstract] | |||
Cash | $ 99,255 | ||
Total consideration paid | 99,255 | ||
Fair value of assets acquired [Abstract] | |||
Cash and cash equivalents | 6,947 | ||
Loans receivable, net | 74,120 | ||
Prepaid assets | 156 | ||
Furniture and equipment, net | 449 | ||
Intangible assets | 8,213 | ||
Other assets | 6 | ||
Total assets | 89,891 | ||
Fair value of liabilities assumed [Abstract] | |||
Accrued expenses and other liabilities | 2,214 | ||
Total liabilities assumed | 2,214 | ||
Fair value of net assets acquired | 87,677 | ||
Goodwill resulting from acquisition | $ 11,578 | ||
AFS/IBEX Financial Services Inc [Member] | Dallas [Member] | |||
Business Acquisition [Line Items] | |||
Number of Agency Offices | Agency | 1 | ||
AFS/IBEX Financial Services Inc [Member] | Southern California [Member] | |||
Business Acquisition [Line Items] | |||
Number of Agency Offices | Agency | 1 |
CREDIT DISCLOSURES (Details)
CREDIT DISCLOSURES (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | |
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | $ 658,022 | $ 499,201 | $ 477,582 |
Less [Abstract] | |||
Allowance for Loan Losses | (6,232) | (5,397) | |
Net Deferred Loan Origination Fees | (260) | (797) | |
Total Loans Receivable, Net | 651,530 | 493,007 | |
1-4 Family Real Estate [Member] | |||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | 118,716 | 116,395 | 108,713 |
Commercial and Multi-Family Real Estate [Member] | |||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | 278,910 | 224,302 | 216,904 |
Agricultural Real Estate [Member] | |||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | 64,173 | 56,071 | 56,945 |
Consumer [Member] | |||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | 32,968 | 29,329 | 29,379 |
Commercial Operating [Member] | |||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | 30,004 | 30,846 | 26,683 |
Agricultural Operating [Member] | |||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | $ 41,511 | 42,258 | 38,958 |
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 | ||
Schedule of Loans Receivable [Abstract] | |||
Total Loans Receivable | $ 91,740 | $ 0 | $ 0 |
Non-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 | 90 days |
CREDIT DISCLOSURES, Allowance f
CREDIT DISCLOSURES, Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | |
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | $ 5,716 | $ 4,572 | $ 5,397 | $ 3,930 | |||
Provision (recovery) for loan losses | 700 | 300 | 1,341 | 600 | |||
Charge offs | (246) | 0 | (603) | 0 | |||
Recoveries | 62 | 23 | 97 | 365 | |||
Ending balance | 6,232 | 4,895 | 6,232 | 4,895 | |||
Ending balance: individually evaluated for impairment | $ 2,426 | $ 358 | |||||
Ending balance: collectively evaluated for impairment | 3,806 | 4,537 | |||||
Total | 5,716 | 4,572 | 5,397 | 3,930 | 6,232 | $ 5,397 | 4,895 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 7,403 | 6,095 | |||||
Ending balance: collectively evaluated for impairment | 650,619 | 471,487 | |||||
Total Loans Receivable | 658,022 | 499,201 | 477,582 | ||||
1-4 Family Real Estate [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 522 | 287 | 552 | 333 | |||
Provision (recovery) for loan losses | 8 | (74) | 23 | (120) | |||
Charge offs | 0 | 0 | (45) | 0 | |||
Recoveries | 0 | 2 | 0 | 2 | |||
Ending balance | 530 | 215 | 530 | 215 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 530 | 215 | |||||
Total | 522 | 287 | 552 | 333 | 530 | 552 | 215 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 124 | 389 | |||||
Ending balance: collectively evaluated for impairment | 118,592 | 108,324 | |||||
Total Loans Receivable | 118,716 | 116,395 | 108,713 | ||||
Commercial and Multi-Family Real Estate [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 1,218 | 1,666 | 1,575 | 1,937 | |||
Provision (recovery) for loan losses | 34 | 23 | (115) | (576) | |||
Charge offs | 0 | 0 | (214) | 0 | |||
Recoveries | 0 | 19 | 6 | 347 | |||
Ending balance | 1,252 | 1,708 | 1,252 | 1,708 | |||
Ending balance: individually evaluated for impairment | 265 | 358 | |||||
Ending balance: collectively evaluated for impairment | 987 | 1,350 | |||||
Total | 1,218 | 1,666 | 1,575 | 1,937 | 1,252 | 1,575 | 1,708 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 1,397 | 5,678 | |||||
Ending balance: collectively evaluated for impairment | 277,513 | 211,226 | |||||
Total Loans Receivable | 278,910 | 224,302 | 216,904 | ||||
Agricultural Real Estate [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 265 | 235 | 263 | 112 | |||
Provision (recovery) for loan losses | 164 | 112 | 166 | 235 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 429 | 347 | 429 | 347 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 429 | 347 | |||||
Total | 265 | 235 | 263 | 112 | 429 | 263 | 347 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 64,173 | 56,945 | |||||
Total Loans Receivable | 64,173 | 56,071 | 56,945 | ||||
Consumer [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 78 | 71 | 78 | 74 | |||
Provision (recovery) for loan losses | 5 | 6 | 5 | 3 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 83 | 77 | 83 | 77 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 83 | 77 | |||||
Total | 78 | 71 | 78 | 74 | 83 | 78 | 77 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 32,968 | 29,379 | |||||
Total Loans Receivable | 32,968 | 29,329 | 29,379 | ||||
Commercial Operating [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 101 | 66 | 93 | 49 | |||
Provision (recovery) for loan losses | 9 | 14 | 14 | 31 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 3 | 0 | |||
Ending balance | 110 | 80 | 110 | 80 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 110 | 80 | |||||
Total | 101 | 66 | 93 | 49 | 110 | 93 | 80 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 13 | 28 | |||||
Ending balance: collectively evaluated for impairment | 29,991 | 26,655 | |||||
Total Loans Receivable | 30,004 | 30,846 | 26,683 | ||||
Agricultural Operating [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 667 | 478 | 719 | 267 | |||
Provision (recovery) for loan losses | 1,940 | 277 | 1,888 | 474 | |||
Charge offs | (150) | 0 | (150) | 0 | |||
Recoveries | 0 | 2 | 0 | 16 | |||
Ending balance | 2,457 | 757 | 2,457 | 757 | |||
Ending balance: individually evaluated for impairment | 2,161 | 0 | |||||
Ending balance: collectively evaluated for impairment | 296 | 757 | |||||
Total | 667 | 478 | 719 | 267 | 2,457 | 719 | 757 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 5,869 | 0 | |||||
Ending balance: collectively evaluated for impairment | 35,642 | 38,958 | |||||
Total Loans Receivable | 41,511 | 42,258 | 38,958 | ||||
Premium Finance [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 168 | 0 | 0 | 0 | |||
Provision (recovery) for loan losses | 100 | 0 | 340 | 0 | |||
Charge offs | (96) | 0 | (194) | 0 | |||
Recoveries | 62 | 0 | 88 | 0 | |||
Ending balance | 234 | 0 | 234 | 0 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 234 | 0 | |||||
Total | 168 | 0 | 0 | 0 | 234 | 0 | 0 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 91,740 | 0 | |||||
Total Loans Receivable | 91,740 | 0 | 0 | ||||
Unallocated [Member] | |||||||
Activity in allowance for loan losses [Roll Forward] | |||||||
Beginning balance | 2,697 | 1,769 | 2,117 | 1,158 | |||
Provision (recovery) for loan losses | (1,560) | (58) | (980) | 553 | |||
Charge offs | 0 | 0 | 0 | 0 | |||
Recoveries | 0 | 0 | 0 | 0 | |||
Ending balance | 1,137 | 1,711 | 1,137 | 1,711 | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 1,137 | 1,711 | |||||
Total | $ 2,697 | $ 1,769 | $ 2,117 | $ 1,158 | 1,137 | $ 2,117 | 1,711 |
Loans [Abstract] | |||||||
Ending balance: individually evaluated for impairment | 0 | 0 | |||||
Ending balance: collectively evaluated for impairment | 0 | 0 | |||||
Total Loans Receivable | $ 0 | $ 0 |
CREDIT DISCLOSURES, Credit Qual
CREDIT DISCLOSURES, Credit Quality Indicator (Details) - USD ($) $ in Thousands | 9 Months Ended | ||
Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 | |
CREDIT DISCLOSURES [Abstract] | |||
Percentage of specific allowance for losses (in hundredths) | 100.00% | ||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 658,022 | $ 499,201 | $ 477,582 |
Exposure of the entity expressed in loan to value ratio (in hundredths) | 80.00% | ||
Tenure of ARM loan offered | five and ten year | ||
Annual cap of ARM loans (in hundredths) | 2.00% | ||
Lifetime cap of ARM loans (in hundredths) | 6.00% | ||
Maturity period of fixed rate loans | 30 years | ||
Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 610,668 | 482,437 | |
Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 32,046 | 2,000 | |
Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 2,603 | 1,900 | |
Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 12,705 | 12,864 | |
Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
1-4 Family Real Estate [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 118,716 | 116,395 | 108,713 |
Maturity period of loans receivable | 30 years | ||
1-4 Family Real Estate [Member] | Minimum [Member] | |||
Asset classification of loans [Abstract] | |||
Loan to value ratio (in hundredths) | 80.00% | ||
1-4 Family Real Estate [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Loan to value ratio (in hundredths) | 100.00% | ||
1-4 Family Real Estate [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 118,465 | 115,700 | |
1-4 Family Real Estate [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 216 | 369 | |
1-4 Family Real Estate [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 10 | 81 | |
1-4 Family Real Estate [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 25 | 245 | |
1-4 Family Real Estate [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 278,910 | 224,302 | 216,904 |
Maturity period of fixed rate loans | 25 years | ||
Commercial and Multi-Family Real Estate [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Percentage value for securing the loan (in hundredths) | 80.00% | ||
Commercial and Multi-Family Real Estate [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 275,549 | 222,074 | |
Commercial and Multi-Family Real Estate [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 2,412 | 852 | |
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 96 | |
Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 949 | 1,280 | |
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Agricultural Real Estate [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 64,173 | 56,071 | 56,945 |
Maturity period of fixed rate loans | 10 years | ||
Agricultural Real Estate [Member] | Minimum [Member] | |||
Asset classification of loans [Abstract] | |||
Amortization period of loans | 20 years | ||
Agricultural Real Estate [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Amortization period of loans | 25 years | ||
Percentage value for securing the loan (in hundredths) | 75.00% | ||
Agricultural Real Estate [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 37,023 | 52,364 | |
Agricultural Real Estate [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 24,810 | 273 | |
Agricultural Real Estate [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 877 | 1,660 | |
Agricultural Real Estate [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 1,463 | 1,774 | |
Agricultural Real Estate [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 32,968 | 29,329 | 29,379 |
Consumer [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Percentage value for securing the loan (in hundredths) | 90.00% | ||
Consumer [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 32,968 | 29,329 | |
Consumer [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Consumer [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 30,004 | 30,846 | 26,683 |
Maturity period of loans receivable | 1 year | ||
Commercial Operating [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Percentage value for securing the loan (in hundredths) | 80.00% | ||
Commercial Operating [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 29,019 | 30,709 | |
Commercial Operating [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 837 | 137 | |
Commercial Operating [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Commercial Operating [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 148 | 0 | |
Commercial Operating [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Agricultural Operating [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 41,511 | 42,258 | 38,958 |
Maturity period of fixed rate loans | 7 years | ||
Agricultural Operating [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 25,904 | 32,261 | |
Agricultural Operating [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 3,771 | 369 | |
Agricultural Operating [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 1,716 | 63 | |
Agricultural Operating [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 10,120 | 9,565 | |
Agricultural Operating [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 91,740 | 0 | $ 0 |
Premium Finance [Member] | Minimum [Member] | |||
Asset classification of loans [Abstract] | |||
Percentage of down payment (in hundredths) | 20.00% | ||
Average period of finance | 9 months | ||
Period of conversion of collateral into cash | 60 days | ||
Typical period of delinquency | 90 days | ||
Premium Finance [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Percentage of down payment (in hundredths) | 30.00% | ||
Average period of finance | 10 months | ||
Period of conversion of collateral into cash | 150 days | ||
Premium Finance [Member] | Pass [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 91,740 | 0 | |
Premium Finance [Member] | Watch [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | Special Mention [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | Substandard [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | 0 | 0 | |
Premium Finance [Member] | Doubtful [Member] | |||
Asset classification of loans [Abstract] | |||
Total Loans Receivable | $ 0 | $ 0 | |
Automobile Loan [Member] | |||
Asset classification of loans [Abstract] | |||
Maturity period of loans receivable | 60 months | ||
Automobile Loan [Member] | Maximum [Member] | |||
Asset classification of loans [Abstract] | |||
Percentage value for securing the loan (in hundredths) | 80.00% |
CREDIT DISCLOSURES, Receivables
CREDIT DISCLOSURES, Receivables Past Due (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | Jun. 30, 2014 |
Past due loans [Abstract] | |||
Total Past Due | $ 29,852 | $ 216 | |
Current | 621,353 | 498,052 | |
Non-Accrual Loans | 6,817 | 933 | |
Total Loans Receivable | 658,022 | 499,201 | $ 477,582 |
30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 28,585 | 113 | |
60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 581 | 49 | |
Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 686 | 54 | |
1-4 Family Real Estate [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 444 | 148 | |
Current | 118,247 | 115,966 | |
Non-Accrual Loans | 25 | 281 | |
Total Loans Receivable | 118,716 | 116,395 | 108,713 |
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 444 | 111 | |
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 37 | |
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Current | 277,987 | 223,990 | |
Non-Accrual Loans | 923 | 312 | |
Total Loans Receivable | 278,910 | 224,302 | 216,904 |
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Agricultural Real Estate [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 24,770 | 0 | |
Current | 39,403 | 56,071 | |
Non-Accrual Loans | 0 | 0 | |
Total Loans Receivable | 64,173 | 56,071 | 56,945 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 24,770 | 0 | |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Agricultural Real Estate [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Consumer [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 158 | 68 | |
Current | 32,810 | 29,261 | |
Non-Accrual Loans | 0 | 0 | |
Total Loans Receivable | 32,968 | 29,329 | 29,379 |
Consumer [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 135 | 2 | |
Consumer [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 18 | 12 | |
Consumer [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 5 | 54 | |
Commercial Operating [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Current | 30,004 | 30,846 | |
Non-Accrual Loans | 0 | 0 | |
Total Loans Receivable | 30,004 | 30,846 | 26,683 |
Commercial Operating [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Operating [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Commercial Operating [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Agricultural Operating [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 1,032 | 0 | |
Current | 34,610 | 41,918 | |
Non-Accrual Loans | 5,869 | 340 | |
Total Loans Receivable | 41,511 | 42,258 | 38,958 |
Agricultural Operating [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 916 | 0 | |
Agricultural Operating [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 116 | 0 | |
Agricultural Operating [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 0 | 0 | |
Premium Finance [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 3,448 | ||
Current | 88,292 | ||
Non-Accrual Loans | 0 | ||
Total Loans Receivable | 91,740 | $ 0 | $ 0 |
Premium Finance [Member] | 30-59 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 2,320 | ||
Premium Finance [Member] | 60-89 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 447 | ||
Premium Finance [Member] | Greater Than 90 Days [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | 681 | ||
Premium Finance [Member] | Greater Than 210 Days Past Due [Member] | |||
Past due loans [Abstract] | |||
Total Past Due | $ 0 |
CREDIT DISCLOSURES, Impaired Re
CREDIT DISCLOSURES, Impaired Receivables (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | $ 586 | $ 586 | $ 4,539 | ||
Unpaid principal balance | 586 | 586 | 4,539 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 6,817 | 6,817 | 1,865 | ||
Unpaid principal balance | 6,817 | 6,817 | 1,865 | ||
Specific allowance | 2,426 | 2,426 | 713 | ||
Average recorded investment | 7,630 | $ 6,302 | 5,523 | $ 7,484 | |
1-4 Family Real Estate [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 124 | 124 | 142 | ||
Unpaid principal balance | 124 | 124 | 142 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 245 | ||
Unpaid principal balance | 0 | 0 | 245 | ||
Specific allowance | 0 | 0 | 23 | ||
Average recorded investment | 162 | 579 | 276 | 636 | |
Commercial and Multi-Family Real Estate [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 449 | 449 | 4,375 | ||
Unpaid principal balance | 449 | 449 | 4,375 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 948 | 948 | 1,280 | ||
Unpaid principal balance | 948 | 948 | 1,280 | ||
Specific allowance | 265 | 265 | 350 | ||
Average recorded investment | 1,406 | 5,694 | 2,358 | 6,811 | |
Agricultural Real Estate [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Specific allowance | 0 | 0 | 0 | ||
Average recorded investment | 0 | 0 | 0 | 0 | |
Consumer [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Specific allowance | 0 | 0 | 0 | ||
Average recorded investment | 1 | 0 | 0 | 0 | |
Commercial Operating [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 13 | 13 | 22 | ||
Unpaid principal balance | 13 | 13 | 22 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Specific allowance | 0 | 0 | 0 | ||
Average recorded investment | 15 | 29 | 18 | 37 | |
Agricultural Operating [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 0 | 0 | 0 | ||
Unpaid principal balance | 0 | 0 | 0 | ||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 5,869 | 5,869 | 340 | ||
Unpaid principal balance | 5,869 | 5,869 | 340 | ||
Specific allowance | 2,161 | 2,161 | $ 340 | ||
Average recorded investment | 6,046 | 0 | 2,871 | 0 | |
Premium Finance [Member] | |||||
Loans without a specific valuation allowance [Abstract] | |||||
Recorded balance | 0 | 0 | |||
Unpaid principal balance | 0 | 0 | |||
Loans with a specific valuation allowance [Abstract] | |||||
Recorded Balance | 0 | 0 | |||
Unpaid principal balance | 0 | 0 | |||
Specific allowance | 0 | 0 | |||
Average recorded investment | $ 0 | $ 0 | $ 0 | $ 0 |
CREDIT DISCLOSURES, Troubled De
CREDIT DISCLOSURES, Troubled Debt Restructurings (Details) - Loan | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Troubled debt restructurings [Abstract] | ||||
Loans modified in TDR | 0 | 0 | 0 | 0 |
Loans modified in TDR, subsequent default | 0 | 0 | 0 | 0 |
ALLOWANCE FOR LOAN LOSSES (Deta
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Sep. 30, 2014 | |
ALLOWANCE FOR LOAN LOSSES [Abstract] | |||||
Allowance for loan losses | $ 6,232 | $ 6,232 | $ 5,397 | ||
Increase in allowance for loan losses | 800 | ||||
Provision for loan losses | $ 700 | $ 300 | 1,341 | $ 600 | |
Net charge offs (recoveries) | $ 500 | $ (400) |
EARNINGS PER COMMON SHARE ("E43
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Earnings [Abstract] | ||||
Net Income | $ 4,640 | $ 4,204 | $ 13,416 | $ 12,349 |
Basic EPS [Abstract] | ||||
Weighted average common shares outstanding (in shares) | 6,942,486 | 6,132,169 | 6,555,415 | 6,109,955 |
Less weighted average nonvested shares (in shares) | 3,922 | 4,000 | 4,193 | 4,401 |
Weighted average common shares outstanding (in shares) | 6,938,564 | 6,128,169 | 6,551,222 | 6,105,554 |
Earnings Per Common Share [Abstract] | ||||
Basic (in dollars per share) | $ 0.67 | $ 0.69 | $ 2.05 | $ 2.02 |
Diluted EPS [Abstract] | ||||
Weighted average common shares outstanding for basic earnings per common share (in shares) | 6,938,564 | 6,128,169 | 6,551,222 | 6,105,554 |
Add dilutive effect of assumed exercises of stock options, net of tax benefits (in shares) | 74,060 | 77,201 | 65,228 | 91,409 |
Weighted average common and dilutive potential common shares outstanding (in shares) | 7,012,624 | 6,205,370 | 6,616,450 | 6,196,963 |
Earnings Per Common Share [Abstract] | ||||
Diluted (in dollars per share) | $ 0.66 | $ 0.68 | $ 2.03 | $ 1.99 |
Stock Options [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Securities excluded from computing diluted EPS (in shares) | 29,199 | 29,199 | 29,199 | 29,199 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 | |
Available-for-sale debt securities [Abstract] | |||
Fair value | $ 596,976 | $ 657,870 | |
Available-for-sale equity securities [Abstract] | |||
Fair value | 562,810 | 482,346 | |
Available-for-sale securities [Abstract] | |||
Amortized cost | 1,170,799 | 1,148,414 | |
Gross unrealized gains | 4,964 | 7,038 | |
Gross unrealized (losses) | (15,977) | (15,236) | |
Fair value | 1,159,786 | 1,140,216 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 783,483 | 280,692 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (10,394) | (1,442) | |
OVER 12 MONTHS, Fair Value | 118,779 | 450,852 | |
OVER 12 MONTHS, Unrealized (Losses) | (5,583) | (13,794) | |
TOTAL, Fair Value | 902,262 | 731,544 | |
TOTAL, Unrealized (Losses) | (15,977) | (15,236) | |
AMORTIZED COST [Abstract] | |||
Due in one year or less | 3,000 | 2,999 | |
Due after one year through five years | 1,179 | 9,922 | |
Due after five years through ten years | 330,864 | 285,413 | |
Due after ten years | 232,444 | 185,851 | |
Total | 567,487 | 484,185 | |
Mortgage-backed securities | 602,672 | 663,690 | |
Common equities and mutual funds | 640 | 539 | |
Amortized cost | 1,170,799 | 1,148,414 | |
FAIR VALUE [Abstract] | |||
Due in one year or less | 3,008 | 3,048 | |
Due after one year through five years | 1,205 | 10,079 | |
Due after five years through ten years | 331,747 | 285,698 | |
Due after ten years | 225,884 | 182,696 | |
Total | 561,844 | 481,521 | |
Mortgage-backed securities | 596,976 | 657,870 | |
Common equities and mutual funds | 966 | 825 | |
Total available for sale securities | 1,159,786 | 1,140,216 | |
Held-to-maturity Securities [Abstract] | |||
Amortized cost | 331,635 | 282,933 | |
Gross unrealized gains | 694 | 942 | |
Gross unrealized (losses) | (5,340) | (4,563) | |
Fair value | 326,989 | 279,312 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 222,134 | 1,056 | |
OVER 12 MONTHS, Fair Value | 74,163 | 230,200 | |
TOTAL, Fair Value | 296,297 | 231,256 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (3,389) | (2) | |
OVER 12 MONTHS, Unrealized (Losses) | (1,951) | (4,561) | |
TOTAL, Unrealized (Losses) | (5,340) | (4,563) | |
AMORTIZED COST [Abstract] | |||
Due in one year or less | 95 | 347 | |
Due after one year through five years | 6,028 | 4,726 | |
Due after five years through ten years | 126,463 | 91,532 | |
Due after ten years | 129,992 | 116,294 | |
Total | 262,578 | 212,899 | |
Mortgage-backed securities | 69,057 | 70,034 | |
Amortized cost | 331,635 | 282,933 | |
FAIR VALUE [Abstract] | |||
Due in one year or less | 95 | 348 | |
Due after one year through five years | 5,986 | 4,718 | |
Due after five years through ten years | 124,618 | 89,984 | |
Due after ten years | 128,870 | 116,090 | |
Total | 259,569 | 211,140 | |
Mortgage-backed securities | 67,420 | 68,172 | |
Total held to maturity securities | 326,989 | 279,312 | |
Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 14,929 | 19,368 |
Unrealized gain (loss) | [1] | (2,235) | (1,868) |
Fair value | [1] | 12,694 | 17,500 |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 14,929 | 19,368 |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 12,694 | 17,500 |
Moody Credit Rating, Baa3 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,985 | |
Unrealized gain (loss) | [1] | (585) | |
Fair value | [1] | 4,400 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,985 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,400 | |
Moody Credit Rating, Baa3 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,977 | |
Unrealized gain (loss) | [1] | (677) | |
Fair value | [1] | 4,300 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,977 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,300 | |
Moody Credit Rating, Baa2 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,986 | |
Unrealized gain (loss) | [1] | (766) | |
Fair value | [1] | 4,220 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,986 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,220 | |
Moody Credit Rating, Baa2 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,979 | |
Unrealized gain (loss) | [1] | (954) | |
Fair value | [1] | 4,025 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,979 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,025 | |
Moody Credit Rating, Baa2 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,962 | |
Unrealized gain (loss) | [1] | (562) | |
Fair value | [1] | 4,400 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,962 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,400 | |
Moody Credit Rating, Baa1 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,964 | |
Unrealized gain (loss) | [1] | (515) | |
Fair value | [1] | 4,449 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,964 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,449 | |
Moody Credit Rating, A3 [Member] | Wells Fargo (Corestates Capital) Trust [Member] | Trust Preferred Securities [Member] | |||
Available-for-sale securities [Abstract] | |||
Amortized cost | [1] | 4,444 | |
Unrealized gain (loss) | [1] | (44) | |
Fair value | [1] | 4,400 | |
AMORTIZED COST [Abstract] | |||
Amortized cost | [1] | 4,444 | |
FAIR VALUE [Abstract] | |||
Total available for sale securities | [1] | 4,400 | |
Debt Securities [Member] | |||
Available-for-sale debt securities [Abstract] | |||
Amortized cost | 1,170,159 | 1,147,875 | |
Gross unrealized gains | 4,631 | 6,747 | |
Gross unrealized (losses) | (15,970) | (15,231) | |
Fair value | 1,158,820 | 1,139,391 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 783,483 | 280,569 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (10,394) | (1,437) | |
OVER 12 MONTHS, Fair Value | 118,657 | 450,852 | |
OVER 12 MONTHS, Unrealized (Losses) | (5,576) | (13,794) | |
TOTAL, Fair Value | 902,140 | 731,421 | |
TOTAL, Unrealized (Losses) | (15,970) | (15,231) | |
Trust Preferred and Corporate Securities [Member] | |||
Available-for-sale debt securities [Abstract] | |||
Amortized cost | 19,209 | 48,747 | |
Gross unrealized gains | 18 | 191 | |
Gross unrealized (losses) | (2,235) | (2,009) | |
Fair value | 16,992 | 46,929 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 0 | 6,073 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | (47) | |
OVER 12 MONTHS, Fair Value | 12,694 | 25,359 | |
OVER 12 MONTHS, Unrealized (Losses) | (2,235) | (1,962) | |
TOTAL, Fair Value | 12,694 | 31,432 | |
TOTAL, Unrealized (Losses) | (2,235) | (2,009) | |
Small Business Administration Securities [Member] | |||
Available-for-sale debt securities [Abstract] | |||
Amortized cost | 35,967 | 66,541 | |
Gross unrealized gains | 1,183 | 543 | |
Gross unrealized (losses) | 0 | (72) | |
Fair value | 37,150 | 67,012 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 8,454 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (72) | ||
OVER 12 MONTHS, Fair Value | 0 | ||
OVER 12 MONTHS, Unrealized (Losses) | 0 | ||
TOTAL, Fair Value | 8,454 | ||
TOTAL, Unrealized (Losses) | (72) | ||
Non-bank Qualified Obligations of States and Political Subdivisions [Member] | |||
Available-for-sale debt securities [Abstract] | |||
Amortized cost | 512,311 | 368,897 | |
Gross unrealized gains | 1,918 | 2,494 | |
Gross unrealized (losses) | (6,527) | (3,811) | |
Fair value | 507,702 | 367,580 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 326,156 | 27,062 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (4,846) | (70) | |
OVER 12 MONTHS, Fair Value | 39,677 | 191,146 | |
OVER 12 MONTHS, Unrealized (Losses) | (1,681) | (3,741) | |
TOTAL, Fair Value | 365,833 | 218,208 | |
TOTAL, Unrealized (Losses) | (6,527) | (3,811) | |
Held-to-maturity Securities [Abstract] | |||
Amortized cost | 243,275 | 193,595 | |
Gross unrealized gains | 668 | 894 | |
Gross unrealized (losses) | (3,250) | (2,329) | |
Fair value | 240,693 | 192,160 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 208,411 | 0 | |
OVER 12 MONTHS, Fair Value | 3,412 | 147,949 | |
TOTAL, Fair Value | 211,823 | 147,949 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (3,145) | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | (105) | (2,329) | |
TOTAL, Unrealized (Losses) | (3,250) | (2,329) | |
AMORTIZED COST [Abstract] | |||
Amortized cost | 243,275 | 193,595 | |
FAIR VALUE [Abstract] | |||
Total held to maturity securities | 240,693 | 192,160 | |
Mortgage-backed Securities [Member] | |||
Available-for-sale debt securities [Abstract] | |||
Amortized cost | 602,672 | 663,690 | |
Gross unrealized gains | 1,512 | 3,519 | |
Gross unrealized (losses) | (7,208) | (9,339) | |
Fair value | 596,976 | 657,870 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 457,327 | 238,980 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (5,548) | (1,248) | |
OVER 12 MONTHS, Fair Value | 66,286 | 234,347 | |
OVER 12 MONTHS, Unrealized (Losses) | (1,660) | (8,091) | |
TOTAL, Fair Value | 523,613 | 473,327 | |
TOTAL, Unrealized (Losses) | (7,208) | (9,339) | |
Held-to-maturity Securities [Abstract] | |||
Amortized cost | 69,057 | 70,034 | |
Gross unrealized gains | 0 | 0 | |
Gross unrealized (losses) | (1,637) | (1,862) | |
Fair value | 67,420 | 68,172 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 5,486 | 0 | |
OVER 12 MONTHS, Fair Value | 61,934 | 68,172 | |
TOTAL, Fair Value | 67,420 | 68,172 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (95) | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | (1,542) | (1,862) | |
TOTAL, Unrealized (Losses) | (1,637) | (1,862) | |
AMORTIZED COST [Abstract] | |||
Amortized cost | 69,057 | 70,034 | |
FAIR VALUE [Abstract] | |||
Total held to maturity securities | 67,420 | 68,172 | |
Obligations of States and Political Subdivisions [Member] | |||
Held-to-maturity Securities [Abstract] | |||
Amortized cost | 19,303 | 19,304 | |
Gross unrealized gains | 26 | 48 | |
Gross unrealized (losses) | (453) | (372) | |
Fair value | 18,876 | 18,980 | |
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 8,237 | 1,056 | |
OVER 12 MONTHS, Fair Value | 8,817 | 14,079 | |
TOTAL, Fair Value | 17,054 | 15,135 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | (149) | (2) | |
OVER 12 MONTHS, Unrealized (Losses) | (304) | (370) | |
TOTAL, Unrealized (Losses) | (453) | (372) | |
AMORTIZED COST [Abstract] | |||
Amortized cost | 19,303 | 19,304 | |
FAIR VALUE [Abstract] | |||
Total held to maturity securities | 18,876 | 18,980 | |
Common Equities and Mutual Funds [Member] | |||
Available-for-sale equity securities [Abstract] | |||
Amortized cost | 640 | 539 | |
Gross unrealized gains | 333 | 291 | |
Gross unrealized (losses) | (7) | (5) | |
Fair value | 966 | 825 | |
Available-for-sale securities in a continuous unrealized loss position [Abstract] | |||
LESS THAN 12 MONTHS, Fair Value | 0 | 123 | |
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | (5) | |
OVER 12 MONTHS, Fair Value | 122 | 0 | |
OVER 12 MONTHS, Unrealized (Losses) | (7) | 0 | |
TOTAL, Fair Value | 122 | 123 | |
TOTAL, Unrealized (Losses) | $ (7) | $ (5) | |
[1] | Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 9 Months Ended | |
Jun. 30, 2015USD ($)Commitment | Sep. 30, 2014USD ($)Commitment | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
Unfunded loan commitments | $ 124.2 | $ 96 |
Number of commitments | Commitment | 1 | 0 |
Commitment to purchase securities | $ 3.6 | |
Inter National Bank [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of shortfall in depository account | 10.5 | |
Springbok Services Inc. [Member] | ||
Loss Contingencies [Line Items] | ||
Estimate of possible loss | 1.5 | |
Range of reasonably possible loss, minimum | 0 | |
Range of reasonably possible loss, maximum | $ 0.3 |
STOCK OPTION PLAN (Details)
STOCK OPTION PLAN (Details) - USD ($) | 3 Months Ended | 9 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Jun. 30, 2015 | Sep. 30, 2014 | |
Number of Shares [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 235,766 | ||
Granted (in shares) | 0 | ||
Exercised (in shares) | (15,146) | ||
Forfeited or expired (in shares) | 0 | ||
Options outstanding, end of period (in shares) | 220,620 | 220,620 | 235,766 |
Options exercisable, end of period (in shares) | 220,620 | 220,620 | |
Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning of period (in dollars per share) | $ 25.20 | ||
Granted (in dollars per share) | 0 | ||
Exercised (in dollars per share) | 25.06 | ||
Forfeited or expired (in dollars per share) | 0 | ||
Options outstanding, end of period (in dollars per share) | $ 25.21 | 25.21 | $ 25.20 |
Options exercisable, end of period (in dollars per share) | $ 25.21 | $ 25.21 | |
Weighted Average Remaining Contractual Term (Yrs) [Abstract] | |||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 3 years 4 days | 3 years 9 months 11 days | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 3 years 4 days | 3 years 9 months 11 days | |
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsExercisableWeightedAverageRemainingContractualTerm1 | 3 years 4 days | ||
Aggregate Intrinsic Value [Abstract] | |||
Options outstanding, beginning of period | $ 2,507,000 | ||
Granted | 0 | ||
Exercised | 248,000 | ||
Forfeited or expired | 0 | ||
Options outstanding, end of period | $ 3,902,000 | 3,902,000 | $ 2,507,000 |
Options exercisable, end of period | $ 3,902,000 | $ 3,902,000 | |
Nonvested Shares Outstanding, Number of Shares [Roll Forward] | |||
Nonvested shares outstanding, beginning of period (in shares) | 4,000 | ||
Granted (in shares) | 5,680 | ||
Vested (in shares) | (5,450) | ||
Forfeited or expired (in shares) | 0 | ||
Nonvested shares outstanding, end of period (in shares) | 4,230 | 4,230 | 4,000 |
Nonvested Shares Outstanding, Weighted Average Fair Value at Grant [Roll Forward] | |||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ 28.61 | ||
Granted (in dollars per share) | 35.62 | ||
Vested (in dollars per share) | 33.62 | ||
Forfeited or expired (in dollars per share) | 0 | ||
Nonvested shares outstanding, end of period (in dollars per share) | $ 31.55 | $ 31.55 | $ 28.61 |
Stock based compensation expense not yet recognized in income | $ 70,584 | $ 70,584 | |
Weighted average remaining period for unrecognized stock based compensation | 1 year 9 months 18 days |
SEGMENT INFORMATION (Details)
SEGMENT INFORMATION (Details) $ in Thousands | 3 Months Ended | 9 Months Ended | |||
Jun. 30, 2015USD ($) | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)Segment | Jun. 30, 2014USD ($) | Sep. 30, 2014USD ($) | |
Segment Reporting Information [Line Items] | |||||
Number of reportable segments | Segment | 2 | ||||
Segment data [Abstract] | |||||
Interest income | $ 15,254 | $ 12,566 | $ 45,244 | $ 35,790 | |
Interest expense | 593 | 638 | 1,727 | 1,831 | |
Net interest income (expense) | 14,661 | 11,928 | 43,517 | 33,959 | |
Provision (recovery) for loan losses | 700 | 300 | 1,341 | 600 | |
Non-interest income | 15,424 | 12,481 | 43,068 | 39,131 | |
Non-interest expense | 24,473 | 18,837 | 70,305 | 57,641 | |
Income (loss) before income tax expense (benefit) | 4,912 | 5,272 | 14,939 | 14,849 | |
Income tax expense (benefit) | 272 | 1,068 | 1,523 | 2,500 | |
Net income | 4,640 | 4,204 | 13,416 | 12,349 | |
Total assets | 2,309,983 | 1,923,333 | 2,309,983 | 1,923,333 | $ 2,054,031 |
Total deposits | 1,513,207 | 1,346,059 | 1,513,207 | 1,346,059 | $ 1,366,541 |
Gross profit data of MPS [Abstract] | |||||
Interest income | 15,254 | 12,566 | 45,244 | 35,790 | |
Interest expense | 593 | 638 | 1,727 | 1,831 | |
Net interest income | 14,661 | 11,928 | 43,517 | 33,959 | |
Provision (recovery) for loan losses | 700 | 300 | 1,341 | 600 | |
Non-interest income | 15,424 | 12,481 | 43,068 | 39,131 | |
Card processing expense | 3,868 | 3,850 | 12,374 | 11,668 | |
Other non-interest expense | 3,757 | 2,233 | 9,905 | 6,429 | |
Income (loss) before income tax expense (benefit) | 4,912 | 5,272 | 14,939 | 14,849 | |
Income tax expense (benefit) | 272 | 1,068 | 1,523 | 2,500 | |
Net income | 4,640 | 4,204 | 13,416 | 12,349 | |
All Others [Member] | |||||
Segment data [Abstract] | |||||
Interest income | 1,807 | 0 | 4,311 | 0 | |
Interest expense | 153 | 112 | 408 | 337 | |
Net interest income (expense) | 1,654 | (112) | 3,903 | (337) | |
Provision (recovery) for loan losses | 100 | 0 | 341 | 0 | |
Non-interest income | 389 | 0 | 1,054 | 0 | |
Non-interest expense | 1,545 | 81 | 4,484 | 716 | |
Income (loss) before income tax expense (benefit) | 398 | (193) | 132 | (1,053) | |
Income tax expense (benefit) | 4 | (80) | (183) | (389) | |
Net income | 394 | (113) | 315 | (664) | |
Total assets | 90,083 | 3,250 | 90,083 | 3,250 | |
Total deposits | (6,532) | (6,418) | (6,532) | (6,418) | |
Gross profit data of MPS [Abstract] | |||||
Interest income | 1,807 | 0 | 4,311 | 0 | |
Interest expense | 153 | 112 | 408 | 337 | |
Provision (recovery) for loan losses | 100 | 0 | 341 | 0 | |
Non-interest income | 389 | 0 | 1,054 | 0 | |
Income (loss) before income tax expense (benefit) | 398 | (193) | 132 | (1,053) | |
Income tax expense (benefit) | 4 | (80) | (183) | (389) | |
Net income | 394 | (113) | 315 | (664) | |
Reportable Segments [Member] | Retail Banking [Member] | |||||
Segment data [Abstract] | |||||
Interest income | 7,780 | 8,223 | 25,096 | 23,481 | |
Interest expense | 393 | 499 | 1,181 | 1,410 | |
Net interest income (expense) | 7,387 | 7,724 | 23,915 | 22,071 | |
Provision (recovery) for loan losses | 600 | 300 | 1,000 | 600 | |
Non-interest income | 1,227 | 732 | 1,546 | 2,540 | |
Non-interest expense | 6,497 | 4,852 | 17,657 | 15,306 | |
Income (loss) before income tax expense (benefit) | 1,517 | 3,304 | 6,804 | 8,705 | |
Income tax expense (benefit) | 136 | 653 | 676 | 1,489 | |
Net income | 1,381 | 2,651 | 6,128 | 7,216 | |
Total assets | 766,129 | 678,116 | 766,129 | 678,116 | |
Total deposits | 224,982 | 254,215 | 224,982 | 254,215 | |
Gross profit data of MPS [Abstract] | |||||
Interest income | 7,780 | 8,223 | 25,096 | 23,481 | |
Interest expense | 393 | 499 | 1,181 | 1,410 | |
Provision (recovery) for loan losses | 600 | 300 | 1,000 | 600 | |
Non-interest income | 1,227 | 732 | 1,546 | 2,540 | |
Income (loss) before income tax expense (benefit) | 1,517 | 3,304 | 6,804 | 8,705 | |
Income tax expense (benefit) | 136 | 653 | 676 | 1,489 | |
Net income | 1,381 | 2,651 | 6,128 | 7,216 | |
Reportable Segments [Member] | Meta Payment Systems [Member] | |||||
Segment data [Abstract] | |||||
Interest income | 5,667 | 4,343 | 15,837 | 12,309 | |
Interest expense | 47 | 27 | 138 | 84 | |
Net interest income (expense) | 5,620 | 4,316 | 15,699 | 12,225 | |
Provision (recovery) for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income | 13,808 | 11,749 | 40,468 | 36,591 | |
Non-interest expense | 16,431 | 13,904 | 48,164 | 41,619 | |
Income (loss) before income tax expense (benefit) | 2,997 | 2,161 | 8,003 | 7,197 | |
Income tax expense (benefit) | 132 | 495 | 1,030 | 1,400 | |
Net income | 2,865 | 1,666 | 6,973 | 5,797 | |
Total assets | 1,453,771 | 1,241,967 | 1,453,771 | 1,241,967 | |
Total deposits | 1,294,757 | 1,098,262 | 1,294,757 | 1,098,262 | |
Gross profit data of MPS [Abstract] | |||||
Interest income | 5,667 | 4,343 | 15,837 | 12,309 | |
Interest expense | 47 | 27 | 138 | 84 | |
Net interest income | 5,620 | 4,316 | 15,699 | 12,225 | |
Provision (recovery) for loan losses | 0 | 0 | 0 | 0 | |
Non-interest income | 13,808 | 11,749 | 40,468 | 36,591 | |
Card processing expense | 3,863 | 3,843 | 12,358 | 11,643 | |
Gross Profit | 15,565 | 12,222 | 43,809 | 37,173 | |
Other non-interest expense | 12,568 | 10,061 | 35,806 | 29,976 | |
Income (loss) before income tax expense (benefit) | 2,997 | 2,161 | 8,003 | 7,197 | |
Income tax expense (benefit) | 132 | 495 | 1,030 | 1,400 | |
Net income | 2,865 | 1,666 | 6,973 | 5,797 | |
Intersegment Eliminations [Member] | |||||
Segment data [Abstract] | |||||
Inter-segment revenue (expense) | 0 | 0 | 0 | 0 | |
Intersegment Eliminations [Member] | Retail Banking [Member] | |||||
Segment data [Abstract] | |||||
Inter-segment revenue (expense) | (4,126) | 2,976 | (12,106) | 9,602 | |
Intersegment Eliminations [Member] | Meta Payment Systems [Member] | |||||
Segment data [Abstract] | |||||
Inter-segment revenue (expense) | 4,126 | (2,976) | 12,106 | (9,602) | |
Intersegment Eliminations [Member] | All Others [Member] | |||||
Segment data [Abstract] | |||||
Inter-segment revenue (expense) | $ 0 | $ 0 | $ 0 | $ 0 |
FAIR VALUE MEASUREMENTS (Detail
FAIR VALUE MEASUREMENTS (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Available-for-sale Securities [Abstract] | ||
Total debt securities | $ 596,976 | $ 657,870 |
Total available for sale securities | 1,159,786 | 1,140,216 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 326,989 | 279,312 |
Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 966 | 825 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 1 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 1,158,820 | 1,139,391 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 326,989 | 279,312 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 2 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Level 3 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total available for sale securities | 0 | 0 |
Held-to-maturity Securities [Abstract] | ||
Total held to maturity securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 656,960 | 504,388 |
Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 4,391 | 1,152 |
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 117,325 | 111,254 |
Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 281,441 | 234,845 |
Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 39,191 | 44,398 |
Level 3 [Member] | Consumer Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 34,131 | 29,580 |
Level 3 [Member] | Commercial Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 24,927 | 25,660 |
Level 3 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 54 | 15 |
Recurring [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred and corporate securities | 16,992 | 46,929 |
Small business administration securities | 37,150 | 67,012 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 507,702 | 367,580 |
Mortgage-backed securities | 596,976 | 657,870 |
Total debt securities | 1,158,820 | 1,139,391 |
Common equities and mutual funds | 966 | 825 |
Total available for sale securities | 1,159,786 | 1,140,216 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred and corporate securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 18,876 | 18,980 |
Non-bank qualified obligations of states and political subdivisions | 240,693 | 192,160 |
Mortgage-backed securities | 67,420 | 68,172 |
Total debt securities | 326,989 | 279,312 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 326,989 | 279,312 |
Recurring [Member] | Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred and corporate securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 966 | 825 |
Total available for sale securities | 966 | 825 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred and corporate securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred and corporate securities | 16,992 | 46,929 |
Small business administration securities | 37,150 | 67,012 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 507,702 | 367,580 |
Mortgage-backed securities | 596,976 | 657,870 |
Total debt securities | 1,158,820 | 1,139,391 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 1,158,820 | 1,139,391 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred and corporate securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 18,876 | 18,980 |
Non-bank qualified obligations of states and political subdivisions | 240,693 | 192,160 |
Mortgage-backed securities | 67,420 | 68,172 |
Total debt securities | 326,989 | 279,312 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 326,989 | 279,312 |
Recurring [Member] | Level 3 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred and corporate securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total available for sale securities | 0 | 0 |
Held-to-maturity Securities [Abstract] | ||
Trust preferred and corporate securities | 0 | 0 |
Small business administration securities | 0 | 0 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 0 | 0 |
Mortgage-backed securities | 0 | 0 |
Total debt securities | 0 | 0 |
Common equities and mutual funds | 0 | 0 |
Total held to maturity securities | 0 | 0 |
Nonrecurring [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 4,445 | 1,167 |
Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 4,391 | 1,152 |
Nonrecurring [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 222 |
Nonrecurring [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 683 | 930 |
Nonrecurring [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 3,708 | |
Nonrecurring [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 54 | 15 |
Nonrecurring [Member] | Level 1 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 1 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 4,445 | 1,167 |
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 4,391 | 1,152 |
Nonrecurring [Member] | Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 222 |
Nonrecurring [Member] | Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 683 | 930 |
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 3,708 | |
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | $ 54 | $ 15 |
FAIR VALUE MEASUREMENTS, Quanti
FAIR VALUE MEASUREMENTS, Quantitative Information (Details) - USD ($) $ in Thousands | 9 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Sep. 30, 2014 | ||
Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Range of estimated selling cost (in hundredths) | 4.00% | 4.00% | |
Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Range of estimated selling cost (in hundredths) | 10.00% | 10.00% | |
Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value | $ 656,960 | $ 504,388 | |
Impaired Loans, Net [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value | $ 4,391 | $ 1,152 | |
Impaired Loans, Net [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Valuation techniques | [1] | Appraised values | Appraised values |
Foreclosed Assets, Net [Member] | Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value | $ 54 | $ 15 | |
Foreclosed Assets, Net [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Valuation techniques | [1] | Appraised values | Appraised values |
[1] | The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. |
FAIR VALUE MEASUREMENTS, Carryi
FAIR VALUE MEASUREMENTS, Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Sep. 30, 2014 |
Financial assets | ||
Securities available for sale | $ 1,159,786 | $ 1,140,216 |
Securities held to maturity | 326,989 | 279,312 |
Level 1 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 20,405 | 29,832 |
Securities available for sale | 966 | 825 |
Securities held to maturity | 0 | 0 |
Total securities | 966 | 825 |
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 14,235 | 11,222 |
Financial liabilities | ||
Noninterest bearing demand deposits | 1,321,213 | 1,126,715 |
Interest bearing demand deposits, savings, and money markets | 113,031 | 105,273 |
Certificates of deposit | 0 | 0 |
Total deposits | 1,434,244 | 1,231,988 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 279 | 318 |
Level 2 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,158,820 | 1,139,391 |
Securities held to maturity | 326,989 | 279,312 |
Total securities | 1,485,809 | 1,418,703 |
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 23,850 | 21,245 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 79,017 | 134,746 |
Total deposits | 79,017 | 134,746 |
Advances from Federal Home Loan Bank | 8,605 | 8,789 |
Federal fund purchased | 526,000 | 470,000 |
Securities sold under agreements to repurchase | 13,278 | 10,411 |
Subordinated debentures | 10,413 | 10,415 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
Financial assets | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Total securities | 0 | 0 |
Loans receivable: | ||
Total loans receivable | 656,960 | 504,388 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 0 | 0 |
Total deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal fund purchased | 0 | |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets | ||
Cash and cash equivalents | 20,405 | 29,832 |
Securities available for sale | 1,159,786 | 1,140,216 |
Securities held to maturity | 331,635 | 282,933 |
Total securities | 1,491,421 | 1,423,149 |
Loans receivable: | ||
Total loans receivable | 658,022 | 499,201 |
Federal Home Loan Bank stock | 23,850 | 21,245 |
Accrued interest receivable | 14,235 | 11,222 |
Financial liabilities | ||
Noninterest bearing demand deposits | 1,321,213 | 1,126,715 |
Interest bearing demand deposits, savings, and money markets | 113,031 | 105,273 |
Certificates of deposit | 78,963 | 134,553 |
Total deposits | 1,513,207 | 1,366,541 |
Advances from Federal Home Loan Bank | 7,000 | 7,000 |
Federal fund purchased | 526,000 | 470,000 |
Securities sold under agreements to repurchase | 13,278 | 10,411 |
Subordinated debentures | 10,310 | 10,310 |
Accrued interest payable | 279 | 318 |
Estimated Fair Value [Member] | ||
Financial assets | ||
Cash and cash equivalents | 20,405 | 29,832 |
Securities available for sale | 1,159,786 | 1,140,216 |
Securities held to maturity | 326,989 | 279,312 |
Total securities | 1,486,775 | 1,419,528 |
Loans receivable: | ||
Total loans receivable | 656,960 | 504,388 |
Federal Home Loan Bank stock | 23,850 | 21,245 |
Accrued interest receivable | 14,235 | 11,222 |
Financial liabilities | ||
Noninterest bearing demand deposits | 1,321,213 | 1,126,715 |
Interest bearing demand deposits, savings, and money markets | 113,031 | 105,273 |
Certificates of deposit | 79,017 | 134,746 |
Total deposits | 1,513,261 | 1,366,734 |
Advances from Federal Home Loan Bank | 8,605 | 8,789 |
Federal fund purchased | 526,000 | 470,000 |
Securities sold under agreements to repurchase | 13,278 | 10,411 |
Subordinated debentures | 10,413 | 10,415 |
Accrued interest payable | 279 | 318 |
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 117,325 | 111,254 |
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 118,716 | 116,395 |
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | 117,325 | 111,254 |
Commercial and Multi-family Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Commercial and Multi-family Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Commercial and Multi-family Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 281,441 | 234,845 |
Commercial and Multi-family Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 278,910 | 224,302 |
Commercial and Multi-family Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | 281,441 | 234,845 |
Agricultural Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 65,877 | 58,651 |
Agricultural Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 64,173 | 56,071 |
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | 65,877 | 58,651 |
Consumer Loans [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Consumer Loans [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Consumer Loans [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 34,131 | 29,580 |
Consumer Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 32,968 | 29,329 |
Consumer Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | 34,131 | 29,580 |
Commercial Operating Loans [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Commercial Operating Loans [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Commercial Operating Loans [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 24,927 | 25,660 |
Commercial Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 30,004 | 30,846 |
Commercial Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | 24,927 | 25,660 |
Agricultural Operating Loans [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Agricultural Operating Loans [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | 0 |
Agricultural Operating Loans [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 39,191 | 44,398 |
Agricultural Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 41,511 | 42,258 |
Agricultural Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | 39,191 | $ 44,398 |
Premium Finance [Member] | Level 1 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | |
Premium Finance [Member] | Level 2 [Member] | ||
Loans receivable: | ||
Total loans receivable | 0 | |
Premium Finance [Member] | Level 3 [Member] | ||
Loans receivable: | ||
Total loans receivable | 94,068 | |
Premium Finance [Member] | Carrying Amount [Member] | ||
Loans receivable: | ||
Total loans receivable | 91,740 | |
Premium Finance [Member] | Estimated Fair Value [Member] | ||
Loans receivable: | ||
Total loans receivable | $ 94,068 |
GOODWILL AND INTANGIBLE ASSET51
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 9 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 0 | |
Balance, end of period | 11,578 | |
Intangible Assets [Roll Forward] | ||
Patent costs capitalized during the period | 151 | $ 202 |
Amortization during the period | (859) | (56) |
Total [Roll Forward] | ||
Balance, beginning of period | 2,588 | 2,339 |
Acquisitions during the period | 19,791 | |
Balance, end of period | 21,671 | 2,485 |
Trademark [Member] | ||
Amortizable intangible assets [Abstract] | ||
Amount | $ 540 | |
Book Amortization Period (Years) | 15 years | |
Method | Straight Line | |
Non-Compete [Member] | ||
Amortizable intangible assets [Abstract] | ||
Amount | $ 260 | |
Book Amortization Period (Years) | 3 years | |
Method | Straight Line | |
Customer Relationships [Member] | ||
Amortizable intangible assets [Abstract] | ||
Amount | $ 7,240 | |
Book Amortization Period (Years) | 30 years | |
Method | Accelerated | |
Other [Member] | ||
Amortizable intangible assets [Abstract] | ||
Amount | $ 173 | |
Method | Straight Line | |
Specialty Finance [Member] | ||
Goodwill [Roll Forward] | ||
Balance, beginning of period | $ 0 | 0 |
Acquisitions during the period | 11,578 | |
Balance, end of period | 11,578 | 0 |
Intangible Assets [Roll Forward] | ||
Balance, beginning of period | 0 | 0 |
Acquisitions during the period | 8,213 | |
Patent costs capitalized during the period | 0 | 0 |
Amortization during the period | (791) | 0 |
Balance, end of period | 7,422 | 0 |
Meta Payment Systems [Member] | Patents [Member] | ||
Intangible Assets [Roll Forward] | ||
Balance, beginning of period | 2,588 | 2,339 |
Acquisitions during the period | 0 | |
Patent costs capitalized during the period | 151 | 202 |
Amortization during the period | (68) | (56) |
Balance, end of period | $ 2,671 | $ 2,485 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | ||||
Income tax expense at federal tax rate | $ 5,229 | $ 5,197 | ||
Increase (decrease) resulting from [Abstract] | ||||
State income taxes net of federal benefit | 477 | 489 | ||
Nontaxable buildup in cash surrender value | (444) | (318) | ||
Incentive stock option expense | (45) | (200) | ||
Tax exempt income | (3,606) | (2,625) | ||
Nondeductible expenses | 124 | 82 | ||
Other, net | (212) | (125) | ||
Income tax expense | $ 272 | $ 1,068 | $ 1,523 | $ 2,500 |
SUBSEQUENT EVENTS (Details)
SUBSEQUENT EVENTS (Details) - Jul. 16, 2015 - Subsequent Event [Member] - Fort Knox and Tax Product Services LLC [Member] $ in Millions | USD ($)LocationRefundtransfershares |
Subsequent Event [Line Items] | |
Assets acquired and liabilities assumed | $ 50 |
Number of locations nationwide | Location | 10,000 |
Number of refund-transfers processed per year | Refundtransfer | 1,000,000 |
Common Stock [Member] | |
Subsequent Event [Line Items] | |
Number of shares sold (in shares) | shares | 535,000 |
Total consideration of shares sold | $ 26 |