Document and Entity Information
Document and Entity Information - USD ($) $ in Millions | 12 Months Ended | ||
Sep. 30, 2015 | Dec. 09, 2015 | Mar. 31, 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 Public Float | $ 253.5 | ||
Entity Common Stock, Shares Outstanding | 8,220,075 | ||
Document Fiscal Year Focus | 2,015 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Sep. 30, 2015 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | |
ASSETS | |||
Cash and cash equivalents | $ 27,658 | $ 29,832 | |
Investment securities available-for-sale | 679,504 | 482,346 | |
Mortgage-backed securities available-for-sale | 576,583 | 657,870 | |
Investment securities held to maturity | 279,167 | 212,899 | |
Mortgage-backed securities held to maturity | 66,577 | 70,034 | |
Loans receivable - net of allowance for loan losses of $6,255 at September 30, 2015 and $5,397 at September 30, 2014 | 706,255 | 493,007 | |
Federal Home Loan Bank stock, at cost | 24,410 | 21,245 | |
Accrued interest receivable | 13,352 | 11,222 | |
Insurance receivable | 0 | 269 | |
Premises, furniture, and equipment, net | 17,393 | 16,462 | |
Bank-owned life insurance | 45,830 | 35,469 | |
Foreclosed real estate and repossessed assets | 0 | 15 | |
Goodwill | 36,928 | 0 | |
Intangible assets | 33,577 | 2,588 | |
Prepaid assets | 9,360 | 9,495 | |
Deferred taxes | 6,997 | 6,591 | |
MPS accounts receivable | 5,337 | 3,935 | |
Other assets | 777 | 752 | |
Total assets | 2,529,705 | 2,054,031 | |
LIABILITIES | |||
Non-interest-bearing checking | 1,449,101 | 1,126,715 | |
Interest-bearing checking | 33,320 | 37,188 | |
Savings deposits | 41,720 | 27,610 | |
Money market deposits | 42,222 | 40,475 | |
Time certificates of deposit | 91,171 | 134,553 | |
Total deposits | 1,657,534 | 1,366,541 | |
Advances from Federal Home Loan Bank | 7,000 | 7,000 | |
Federal funds purchased | 540,000 | 470,000 | |
Securities sold under agreements to repurchase | 4,007 | 10,411 | |
Subordinated debentures | 10,310 | [1] | 10,310 |
Capital lease | 2,143 | 0 | |
Accrued interest payable | 272 | 318 | |
Contingent liability | 331 | 331 | |
Accrued expenses and other liabilities | 36,773 | 14,318 | |
Total liabilities | 2,258,370 | 1,879,229 | |
STOCKHOLDERS' EQUITY | |||
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at September 30, 2015 and 2014, respectively | 0 | 0 | |
Common stock, $.01 par value; 10,000,000 shares authorized, 8,183,272 and 6,213,979 shares issued, 8,163,022 and 6,169,604 shares outstanding at September 30, 2015 and 2014, respectively | 82 | 62 | |
Additional paid-in capital | 170,749 | 95,079 | |
Retained earnings | 98,359 | 83,797 | |
Accumulated other comprehensive income (loss) | 2,455 | (3,409) | |
Treasury stock, 20,250 and 44,375 common shares, at cost, at September 30, 2015 and 2014, respectively | (310) | (727) | |
Total stockholders' equity | 271,335 | [1] | 174,802 |
Total liabilities and stockholders' equity | $ 2,529,705 | $ 2,054,031 | |
[1] | Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
ASSETS | ||
Loans receivable, allowance for loan losses | $ 6,255 | $ 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) | 8,183,272 | 6,213,979 |
Common stock, shares outstanding (in shares) | 8,163,022 | 6,169,604 |
Treasury stock (in shares) | 20,250 | 44,375 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Interest and dividend income: | |||
Loans receivable, including fees | $ 29,565 | $ 19,674 | $ 16,151 |
Mortgage-backed securities | 13,979 | 15,343 | 11,900 |
Other investments | 18,063 | 13,643 | 10,925 |
Total interest and dividend income | 61,607 | 48,660 | 38,976 |
Interest expense: | |||
Deposits | 726 | 965 | 1,280 |
FHLB advances and other borrowings | 1,661 | 1,433 | 1,674 |
Total interest expense | 2,387 | 2,398 | 2,954 |
Net interest income | 59,220 | 46,262 | 36,022 |
Provision for loan losses | 1,465 | 1,150 | 0 |
Net interest income after provision for loan losses | 57,755 | 45,112 | 36,022 |
Non-interest income: | |||
Card fees | 54,542 | 48,738 | 50,790 |
Bank-owned life insurance income | 2,030 | 1,139 | 998 |
Loan fees | 2,348 | 981 | 868 |
Deposit fees | 593 | 616 | 632 |
Gain (loss) on sale of securities available-for-sale, net (Includes ($1,634), $107, and $2,546 reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the fiscal years ended September 30, 2015, 2014 and 2013, respectively) | (1,634) | 107 | 2,546 |
Gain (loss) on foreclosed real estate | 28 | (93) | (268) |
Other income (loss) | 267 | 250 | (63) |
Total non-interest income | 58,174 | 51,738 | 55,503 |
Non-interest expense: | |||
Compensation and benefits | 46,493 | 38,155 | 34,106 |
Card processing expense | 16,508 | 15,487 | 15,584 |
Occupancy and equipment expense | 11,399 | 8,979 | 8,479 |
Legal and consulting expense | 4,978 | 4,145 | 4,048 |
Data processing expense | 1,347 | 1,316 | 1,228 |
Marketing | 1,537 | 1,034 | 981 |
Impairment on assets held for sale | 0 | 0 | 589 |
Other expense | 14,244 | 9,115 | 9,388 |
Total non-interest expense | 96,506 | 78,231 | 74,403 |
Income before income tax expense | 19,423 | 18,619 | 17,122 |
Income tax expense (benefit) (Includes ($597), $39 and $924 income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2015, 2014 and 2013, respectively) | 1,368 | 2,906 | 3,704 |
Net income | $ 18,055 | $ 15,713 | $ 13,418 |
Earnings per common share: | |||
Basic (in dollars per share) | $ 2.68 | $ 2.57 | $ 2.40 |
Diluted (in dollars per share) | $ 2.66 | $ 2.53 | $ 2.38 |
CONSOLIDATED STATEMENTS OF OPE5
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Non-interest income: | |||
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) | $ (1,634) | $ 107 | $ 2,546 |
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) | $ (597) | $ 39 | $ 924 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income (Loss) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Consolidated Statements of Comprehensive Income (Loss) [Abstract] | |||
Net income | $ 18,055 | $ 15,713 | $ 13,418 |
Other comprehensive income (loss): | |||
Change in net unrealized gain (loss) on securities | 7,723 | 26,790 | (44,301) |
Losses (gains) realized in net income | 1,634 | (107) | (2,546) |
Total available for sale adjustment | 9,357 | 26,683 | (46,847) |
Deferred income tax effect | 3,493 | 9,807 | (18,049) |
Total other comprehensive income (loss) | 5,864 | 16,876 | (28,798) |
Total comprehensive income (loss) | $ 23,919 | $ 32,589 | $ (15,380) |
Consolidated Statements of Chan
Consolidated Statements of Changes in Stockholders' Equity - USD ($) $ in Thousands | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive (Loss), Net of Tax [Member] | Treasury Stock [Member] | Total | |
Balance at Sep. 30, 2012 | $ 56 | $ 78,769 | $ 60,776 | $ 8,513 | $ (2,255) | $ 145,859 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||
Cash dividends declared on common stock | 0 | 0 | (2,926) | 0 | 0 | (2,926) | |
Issuance of common shares from the sales of equity securities | 5 | 12,713 | 0 | 0 | 0 | 12,718 | |
Issuance of common shares due to issuance of stock options and restricted stock | 0 | 1,316 | 0 | 0 | 1,232 | 2,548 | |
Issuance of common shares due to acquisition | 0 | ||||||
Stock compensation | 0 | 165 | 0 | 0 | 0 | 165 | |
Net change in unrealized losses on securities, net of income taxes | 0 | 0 | 0 | (28,798) | 0 | (28,798) | |
Net income | 0 | 13,418 | 0 | 0 | 13,418 | ||
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 | 0 | (3,184) | 0 | 0 | (3,184) | |
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 | 2,080 | 0 | 0 | 296 | 2,376 | |
Issuance of common shares due to acquisition | 0 | ||||||
Stock compensation | 0 | 88 | 0 | 0 | 0 | 88 | |
Net change in unrealized losses on securities, net of income taxes | 0 | 0 | 0 | 16,876 | 0 | 16,876 | |
Net income | 0 | 15,713 | 0 | 0 | 15,713 | ||
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 | 0 | (3,493) | 0 | 0 | (3,493) | |
Issuance of common shares from the sales of equity securities | 14 | 50,737 | 0 | 0 | 417 | 51,168 | |
Issuance of common shares due to issuance of stock options and restricted stock | 0 | 378 | 0 | 0 | 0 | 378 | |
Issuance of common shares due to acquisition | 6 | 24,297 | 0 | 0 | 0 | 24,303 | |
Stock compensation | 0 | 258 | 0 | 0 | 0 | 258 | |
Net change in unrealized losses on securities, net of income taxes | 0 | 0 | 0 | 5,864 | 0 | 5,864 | |
Net income | 0 | 18,055 | 0 | 0 | 18,055 | ||
Balance at Sep. 30, 2015 | $ 82 | $ 170,749 | $ 98,359 | $ 2,455 | $ (310) | $ 271,335 | [1] |
[1] | Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. |
Consolidated Statements of Cha8
Consolidated Statements of Changes in Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||
Cash dividends declared on common stock (in dollars per share) | $ 0.52 | $ 0.52 | $ 0.52 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Cash flows from operating activities: | |||
Net income | $ 18,055 | $ 15,713 | $ 13,418 |
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||
Depreciation, amortization and accretion, net | 28,882 | 18,147 | 21,104 |
Provision (recovery) for loan losses | 1,465 | 1,150 | 0 |
Provision (recovery) for deferred taxes | (3,896) | (1,755) | (395) |
(Gain) loss on other assets | 6 | (43) | 309 |
(Gain) loss on foreclosed real estate | (28) | 93 | 268 |
(Gain) loss on sale of securities available-for-sale, net | 1,634 | (107) | (2,546) |
Capital lease obligations interest expense | 131 | 0 | 0 |
Net change in accrued interest receivable | (2,130) | (2,640) | (1,872) |
Impairment on assets held for sale | 0 | 0 | 589 |
Change in bank-owned life insurance value | (1,225) | (1,639) | (998) |
Net change in other assets | (672) | (807) | (9,876) |
Net change in accrued interest payable | (46) | 27 | 114 |
Net change in accrued expenses and other liabilities | 6,780 | (2,326) | (43,183) |
Net cash provided by (used in) operating activities | 48,956 | 25,813 | (23,068) |
Cash flows from investing activities: | |||
Purchase of securities available-for-sale | (810,624) | (491,416) | (505,863) |
Proceeds from sales of securities available-for-sale | 566,371 | 166,804 | 209,172 |
Proceeds from maturities and principal repayments of securities available-for-sale | 124,558 | 81,754 | 187,245 |
Purchase of securities held to maturity | (72,759) | (15,117) | (8,946) |
Proceeds from maturities and principal repayments of securities held to maturity | 9,879 | 16,802 | 3,837 |
Purchase of bank-owned life insurance | (10,000) | (500) | (18,000) |
Proceeds from bank-owned life insurance death benefit | 864 | 0 | 0 |
Loans purchased | 0 | (343) | (4,699) |
Loans sold | (5,462) | (11,747) | (19,922) |
Net change in loans receivable | (135,187) | (101,639) | (28,826) |
Proceeds from sales of foreclosed real estate | 86 | 8 | 478 |
Cash paid for acquisitions | (125,314) | 0 | 0 |
Cash received upon acquisitions | 9,768 | 0 | 0 |
Federal Home Loan Bank stock purchases | (544,324) | (445,971) | (414,833) |
Federal Home Loan Bank stock redemptions | 541,160 | 434,720 | 406,959 |
Proceeds from the sale of premises and equipment | 2,100 | 1,178 | 0 |
Purchase of premises and equipment | (5,031) | (2,329) | (5,262) |
Net cash provided by (used in) investing activities | (453,915) | (367,796) | (198,660) |
Cash flows from financing activities: | |||
Net change in checking, savings, and money market deposits | 334,375 | 48,304 | (96,954) |
Net change in time deposits | (43,382) | 2,954 | 32,443 |
Repayment of FHLB and other borrowings | 0 | 0 | (4,000) |
Net change in federal funds | 70,000 | 280,000 | 190,000 |
Net change in securities sold under agreements to repurchase | (6,404) | 1,265 | (17,254) |
Principal payments on capital lease obligations | (116) | 0 | 0 |
Cash dividends paid | (3,493) | (3,184) | (2,926) |
Stock compensation | 258 | 88 | 165 |
Proceeds from issuance of common stock | 51,547 | 2,325 | 15,266 |
Net cash provided by (used in) financing activities | 402,785 | 331,752 | 116,740 |
Net change in cash and cash equivalents | (2,174) | (10,231) | (104,988) |
Cash and cash equivalents at beginning of year | 29,832 | 40,063 | 145,051 |
Cash and cash equivalents at end of year | 27,658 | 29,832 | 40,063 |
Cash paid during the year for: | |||
Interest | 2,433 | 2,371 | 2,840 |
Income taxes | 5,277 | 4,451 | 3,761 |
Franchise taxes | 98 | 109 | 70 |
Other taxes | 48 | 0 | 0 |
Supplemental disclosure of non-cash investing and financing activities: | |||
Common stock issued for acquisition | (24,303) | 0 | 0 |
Capital lease obligation | (2,259) | 0 | 0 |
Securities transferred from available-for-sale to held to maturity | 310 | 0 | 282,195 |
Purchase of available-for-sale securities accrued, not paid | (7,877) | 0 | 0 |
Purchase of held-to-maturity securities accrued, not paid | (3,000) | 0 | 0 |
Loans transferred to foreclosed real estate | $ 54 | $ 0 | $ 0 |
SUMMARY OF SIGNIFICANT ACCOUNTI
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | 12 Months Ended |
Sep. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES | NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency and First Services Financial Limited, which offered noninsured investment products and was dissolved on December 3, 2013. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities. The Trust is not included in the consolidated financial statements of the Company. All significant intercompany balances and transactions have been eliminated. NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, and residential real estate loans. The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis for the MPS division. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of two reporting segments. USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the allowance for loan losses, the valuation of intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future. CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and FHLB advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was $4.1 million and $8.3 million at September 30, 2015, and 2014, respectively. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2015, the Company had no interest-bearing deposits held at the FHLB and $7.2 million in interest-bearing deposits held at the FRB. At September 30, 2015, the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent. SECURITIES GAAP 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 (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities. The Company classifies the majority of its securities as AFS. AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. During the 2013 fiscal year, the Company reclassified a portion of its securities portfolio from the AFS to the HTM category. The reclassification was made to better reflect the revised intentions of the Company to maintain these securities in its portfolio; in response to the potential impact on tangible book value should interest rates rise, due to the mark to market on these bonds; and to mitigate possible negative impacts on its regulatory capital under the proposed Dodd-Frank and Basel III capital guidelines, whereby unrealized losses on AFS securities could become a direct deduction from regulatory capital. Subsequent to the reclassification and prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done. Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned. The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities. Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Securities Impairment Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value. If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes. The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. In fiscal 2015, 2014 and 2013, there was no other-than-temporary impairment recorded. LOANS RECEIVABLE Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method. As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR. For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider. Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan. Generally, when a loan becomes delinquent 90 days or more for Retail Bank or 210 days or more for Premium Finance or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. The loan will remain on a non-accrual status until the loan becomes current and has demonstrated a sustained period of satisfactory performance. MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS The Company, from time to time, sells loan participations, generally without recourse. Sold loans are not included in the consolidated financial statements. The Bank generally retains the right to service the sold loans for a fee. At September 30, 2015 and 2014, the Bank was servicing loans for others with aggregate unpaid principal balances of $22.2 million and $22.6 million, respectively. ALLOWANCE FOR LOAN LOSSES The allowance for loan losses represents management’s estimate of probable loan losses that have been incurred as of the date of the consolidated financial statements. The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s and peer group’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur. The allowance consists of specific, general and unallocated components. The specific component relates to impaired loans. Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories. Non-accrual loans and all TDRs are considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general reserve covers loans not considered impaired and is comprised of both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2015 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”). · The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past five years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized. · In prior periods, management utilized a three-year historical loss experience methodology. A five-year LBP is appropriate to capture a wider range of losses due to historically low levels in recent years and to continue to factor in loss experience resulting from the credit crisis and other factors. · The LEP is an estimate of the average amount of time from the point the customer incurs a loss to the point the loss is confirmed by the Company. During management’s most recent periodic evaluation, we studied the LEPs for our loan portfolio utilizing Company charge-off history. The LEP is only applied to the non-classified homogeneous loan general reserve. The main assumptions for the quantitative components in 2014 are historical loss rates and other qualitative adjustments. Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses. Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs. INCOME TAXES The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes PREMISES, FURNITURE AND EQUIPMENT Land is carried at cost. Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization. Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. TRANSFERS OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. BANK-OWNED LIFE INSURANCE Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts. Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs. EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company. At September 30, 2015 and 2014, all shares in the ESOP were allocated. FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements. INTANGIBLE ASSETS Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security. Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction. Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability. The securities underlying the agreements remain in the asset accounts of the Company. REVENUE RECOGNITION Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment. Income from service and other customer charges is recognized as earned. Revenue within the MPS division is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. EARNINGS PER COMMON SHARE (“EPS”) Basic EPS is based on the net income divided by the weighted-average number of common shares outstanding during the period. Allocated ESOP shares are considered outstanding for earnings per common share calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding. Diluted EPS shows the dilutive effect of additional potential common shares issuable under stock option plans. COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity. STOCK COMPENSATION Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested 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 have been negligible. NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (“ASU”) No 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined. Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date. This update is in effect for annual and interim periods beginning after December 15, 2015, and the Company does not expect a material impact on the Company’s consolidated financial statements. 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 was effective for annual and interim periods beginning after December 15, 2014, and does not have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 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 was effective for annual and interim periods beginning after December 15, 2014, and will not 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. |
ACQUISITIONS
ACQUISITIONS | 12 Months Ended |
Sep. 30, 2015 | |
ACQUISITIONS [Abstract] | |
ACQUISITIONS | NOTE 2. ACQUISITIONS The Company completed two acquisitions for the fiscal year ended September 30, 2015. The two purchase transactions are detailed below. AFS/IBEX 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 for 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. The intangible assets consist primarily of customer relationships that will be amortized over 30 years and will be deductible for tax purposes. See Note 22 to the 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. The Company recorded $7.6 million in revenue and $0.8 million in net income for AFS/IBEX during fiscal 2015. In addition, the Company incurred transaction costs of approximately $0.6 million in 2015 in connection with the acquisition, which are included in legal and consulting and other expenses on our consolidated statement of operations for the year ended September 30, 2015. This acquisition is not deemed significant to the overall Company’s financial statements. REFUND ADVANTAGE On September 8, 2015, the Company, through its wholly-owned subsidiary, MetaBank, purchased substantially all the assets and related liabilities of Fort Knox Financial Services Corporation and its subsidiary, Tax Product Services LLC (together “Refund Advantage”). Refund Advantage is a provider of integrated tax refund processing services. Under the terms of the purchase agreement, the aggregate purchase price was approximately $50.4 million, of which $26.1 million was paid in cash and $24.3 million was issued in Meta common stock. The Company acquired assets with approximate fair values of $2.8 million for cash and cash equivalents, $0.5 million other assets, $24.1 million intangible assets including customer relationships, trademark, and non-compete agreements, and $25.4 million goodwill. The Company also assumed liabilities of $2.5 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 Refund Advantage on the consolidated balance sheet as of September 8, 2015: As of September 8, 2015 (Dollars in Thousands) Fair value of consideration paid Cash $ 26,060 Stock issued $ 24,303 Total consideration paid 50,363 Fair value of assets acquired Cash and cash equivalents 2,821 Prepaid assets 23 Furniture and equipment, net 55 Intangible assets 24,119 Other assets 457 Total assets 27,475 Fair value of liabilities assumed Accrued expenses and other liabilities 2,463 Total liabilities assumed 2,463 Fair value of net assets acquired 25,012 Goodwill resulting from acquisition $ 25,351 The Refund Advantage 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 $25.4 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. The intangible assets consist primarily of customer relationships that will be amortized over between 12 and 20 years and the Refund Advantage trademark, which will be amortized over 15 years and will be deductible for tax purposes. See Note 22 to the Consolidated Financial Statements for further information on goodwill. We incurred transaction costs of approximately $0.9 million in connection with the acquisition, which are included in legal and consulting and other expenses on our consolidated statement of operations for the year ended September 30, 2015. The following unaudited pro forma summary financial results present the consolidated results of operations as if the acquisition of Refund Advantage had occurred as of October 1, 2013, after the effect of certain adjustments, including amortization of certain identifiable intangible assets, income and expense items not attributable to ongoing operations and related tax effects. The unaudited pro forma condensed consolidated statement of operations does not include any adjustments for any restructuring activities, operating efficiencies or cost savings. The pro forma results have been presented for comparative purposes only and are not indicative of what would have occurred had the Refund Advantage acquisition been made as of October 1, 2013, or of any potential results which may occur in the future. September 30, 2015 2014 (Dollars in Thousands) Total income $ 142,876 $ 127,150 Net income attributable to common stock $ 19,724 $ 19,087 Basic earnings per common share 2.51 2.64 Diluted earnings per common share 2.49 2.61 Basic weighted-average common shares, issued and outstanding 7,850,582 7,229,536 Diluted weighted-average common shares, issued and outstanding 7,915,811 7,314,669 |
LOANS RECEIVABLE, NET
LOANS RECEIVABLE, NET | 12 Months Ended |
Sep. 30, 2015 | |
LOANS RECEIVABLE, NET [Abstract] | |
LOANS RECEIVABLE, NET | NOTE 3. LOANS RECEIVABLE, NET Year-end loans receivable were as follows: September 30, 2015 September 30, 2014 (Dollars in Thousands) 1-4 Family Real Estate $ 125,021 $ 116,395 Commercial and Multi-Family Real Estate 310,199 224,302 Agricultural Real Estate 64,316 56,071 Consumer 33,527 29,329 Commercial Operating 29,893 30,846 Agricultural Operating 43,626 42,258 Premium Finance 106,505 - Total Loans Receivable 713,087 499,201 Less: Allowance for Loan Losses (6,255 ) (5,397 ) Net Deferred Loan Origination Fees (577 ) (797 ) Total Loans Receivable, Net $ 706,255 $ 493,007 Annual activity in the allowance for loan losses was as follows: Year ended September 30, 2015 2014 2013 (Dollars in Thousands) Beginning balance $ 5,397 $ 3,930 $ 3,971 Provision (recovery) for loan losses 1,465 1,150 - Recoveries 123 367 179 Charge offs (730 ) (50 ) (220 ) Ending balance $ 6,255 $ 5,397 $ 3,930 Allowance for Loan Losses and Recorded Investment in loans at September 30, 2015 and 2014 are as follows: 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2015 Allowance for loan losses: Beginning balance $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Provision (recovery) for loan losses (229 ) (180 ) (100 ) (58 ) (68 ) 3,004 464 (1,368 ) 1,465 Charge offs (45 ) (214 ) - - - (186 ) (285 ) - (730 ) Recoveries - 6 - - 3 - 114 - 123 Ending balance $ 278 $ 1,187 $ 163 $ 20 $ 28 $ 3,537 $ 293 $ 749 $ 6,255 Ending balance: individually evaluated for impairment - 241 - - - 3,252 - - 3,493 Ending balance: collectively evaluated for impairment 278 946 163 20 28 285 293 749 2,762 Total $ 278 $ 1,187 $ 163 $ 20 $ 28 $ 3,537 $ 293 $ 749 $ 6,255 Loans: Ending balance: individually evaluated for impairment 121 1,350 - - 11 5,132 - - 6,614 Ending balance: collectively evaluated for impairment 124,900 308,849 64,316 33,527 29,882 38,494 106,505 - 706,473 Total $ 125,021 $ 310,199 $ 64,316 $ 33,527 $ 29,893 $ 43,626 $ 106,505 $ - $ 713,087 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2014 Allowance for loan losses: Beginning balance $ 333 $ 1,937 $ 112 $ 74 $ 49 $ 267 $ - $ 1,158 $ 3,930 Provision (recovery) for loan losses 217 (709 ) 151 4 26 502 - 959 1,150 Charge offs - - - - - (50 ) - - (50 ) Recoveries 2 347 - - 18 - - - 367 Ending balance $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Ending balance: individually evaluated for impairment 23 350 - - - 340 - - 713 Ending balance: collectively evaluated for impairment 529 1,225 263 78 93 379 - 2,117 4,684 Total $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Loans: Ending balance: individually evaluated for impairment 387 5,655 - - 22 340 - - 6,404 Ending balance: collectively evaluated for impairment 116,008 218,647 56,071 29,329 30,824 41,918 - - 492,797 Total $ 116,395 $ 224,302 $ 56,071 $ 29,329 $ 30,846 $ 42,258 $ - $ - $ 499,201 The asset classification of loans at September 30, 2015, and 2014, are as follows: September 30, 2015 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 124,775 $ 307,876 $ 35,106 $ 33,527 $ 29,052 $ 29,336 $ 106,505 $ 666,177 Watch 212 1,419 26,703 - 712 1,079 - 30,125 Special Mention 10 - 877 - - 4,014 - 4,901 Substandard 24 904 1,630 - 129 9,197 - 11,884 Doubtful - - - - - - - - $ 125,021 $ 310,199 $ 64,316 $ 33,527 $ 29,893 $ 43,626 $ 106,505 $ 713,087 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 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 a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures. Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention. These assets are of better quality than special mention assets. Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset. Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification. Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher. The adverse classifications are as follows: Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position. Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected. Loss potential does not have to exist for an asset to be classified as substandard. Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort. Due to pending factors, the asset’s classification as loss is not yet appropriate. Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted. This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts. Generally, when a loan becomes delinquent 90 days or more for Retail Bank or 210 days or more for Premium Finance or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. Past due loans at September 30, 2015 and 2014 are as follows: September 30, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 142 $ - $ - $ 142 $ 124,855 $ 24 $ 125,021 Commercial and Multi-Family Real Estate - - - - 309,295 904 310,199 Agricultural Real Estate - - - - 64,316 - 64,316 Consumer 152 - 13 165 33,362 - 33,527 Commercial Operating - - - - 29,893 - 29,893 Agricultural Operating - - - - 38,494 5,132 43,626 Premium Finance 702 362 1,728 2,792 103,713 - 106,505 Total $ 996 $ 362 $ 1,741 $ 3,099 $ 703,928 $ 6,060 $ 713,087 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 September 30, 2015, there were no Premium Finance loans greater than 210 days past due. Impaired loans at September 30, 2015 and 2014 are as follows: Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2015 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 121 $ 121 $ - Commercial and Multi-Family Real Estate 446 446 - Commercial Operating 11 11 - Total $ 578 $ 578 $ - Loans with a specific valuation allowance 1-4 Family Real Estate $ - $ - $ - Commercial and Multi-Family Real Estate 904 904 241 Agricultural Operating 5,132 5,282 3,252 Total $ 6,036 $ 6,186 $ 3,493 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 - Commercial Operating 22 22 - 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 Operating 340 340 340 Total $ 1,865 $ 1,865 $ 713 Cash interest collected on impaired loans was not material during the years ended September 30, 2015 and 2014. The following table provides the average recorded investment in impaired loans for the years ended September 30, 2015 and 2014. Year Ended September 30, 2015 2014 Average Recorded Investment Average Recorded Investment 1-4 Family Real Estate $ 238 $ 574 Commercial and Multi-Family Real Estate 2,114 6,526 Commercial Operating 17 34 Agricultural Operating 3,559 29 Total $ 5,928 $ 7,163 For fiscal 2015 and 2014, the Company’s TDRs (which involved forgiving a portion of interest or principal on any loans or making loans at a rate materially less than that of market rates) are included in the table above. No TDRs were recorded during fiscal 2015 or 2014. Also, no TDRs which had been modified during the 12-month period prior to default had a payment default during fiscal 2015 or 2014. Virtually all of the Company’s originated loans are to Iowa- and South Dakota-based individuals and organizations. The Company’s purchased loans totaled $8.1 million at September 30, 2015, which were secured by properties located, as a percentage of total loans, as follows: 1% combined in Oregon and North Dakota and less than 1% in Minnesota, North Carolina, South Dakota and Connecticut. The Company originates and purchases commercial real estate loans. These loans are considered by management to be of somewhat greater risk of not being collected due to the dependency on income production. The Company’s commercial real estate loans include $51.1 million of loans secured by hotel properties and $99.6 million of multi-family properties at September 30, 2015. The Company’s commercial real estate loans include $40.7 million of loans secured by hotel properties and $62.3 million of multi-family properties at September 30, 2014. The remainder of the commercial real estate portfolio is diversified by industry. The Company’s policy for requiring collateral and guarantees varies with the creditworthiness of each borrower. Non-accruing loans were $6.1 million and $0.9 million at September 30, 2015 and 2014, respectively. There were $1.7 million and $0.1 million accruing loans delinquent 90 days or more at September 30, 2015 and 2014, respectively. For the year ended September 30, 2015, gross interest income which would have been recorded had the non-accruing loans been current in accordance with their original terms amounted to approximately $0.9 million, of which none was included in interest income. |
LOAN SERVICING
LOAN SERVICING | 12 Months Ended |
Sep. 30, 2015 | |
LOAN SERVICING [Abstract] | |
LOAN SERVICING | NOTE 4. LOAN SERVICING Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at year-end were as follows: September 30, 2015 2014 2013 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 5,055 $ 5,948 $ 7,361 Other 17,156 16,576 9,930 $ 22,211 $ 22,524 $ 17,291 |
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE | 12 Months Ended |
Sep. 30, 2015 | |
EARNINGS PER COMMON SHARE [Abstract] | |
EARNINGS PER COMMON SHARE | NOTE 5. EARNINGS PER COMMON SHARE 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 September 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 the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2015, 2014 and 2013 is presented below. 2015 2014 2013 (Dollars in Thousands, Except Share and Per Share Data) Earnings Net income $ 18,055 $ 15,713 $ 13,418 Basic EPS Weighted average common shares outstanding 6,730,086 6,117,577 5,595,733 Less weighted average nonvested shares (4,237 ) (4,301 ) (2,032 ) Weighted average common shares outstanding 6,725,849 6,113,276 5,593,701 Earnings Per Common Share Basic $ 2.68 $ 2.57 $ 2.40 Diluted EPS Weighted average common shares outstanding for basic earnings per common share 6,725,849 6,113,276 5,593,701 Add dilutive effect of assumed exercises of stock options, net of tax benefits 68,951 85,133 53,437 Weighted average common and dilutive potential common shares outstanding 6,794,800 6,198,409 5,647,138 Earnings Per Common Share Diluted $ 2.66 $ 2.53 $ 2.38 Stock options totaling 28,891, 29,984 and 88,828 were not considered in computing diluted earnings per common share for the years ended September 30, 2015, 2014 and 2013, respectively, because they were anti-dilutive. |
SECURITIES
SECURITIES | 12 Months Ended |
Sep. 30, 2015 | |
SECURITIES [Abstract] | |
SECURITIES | NOTE 6. SECURITIES Securities available for sale were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2015 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 16,199 $ 8 $ (2,263 ) $ 13,944 Small business administration securities 54,493 1,563 - 56,056 Non-bank qualified obligations of states and political subdivisions 603,165 7,240 (1,815 ) 608,590 Mortgage-backed securities 580,165 1,283 (4,865 ) 576,583 Total debt securities 1,254,022 10,094 (8,943 ) 1,255,173 Common equities and mutual funds 639 283 (8 ) 914 Total available for sale securities $ 1,254,661 $ 10,377 $ (8,951 ) $ 1,256,087 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2014 COST GAINS (LOSSES) VALUE (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 were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2015 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,540 $ 60 $ (187 ) $ 19,413 Non-bank qualified obligations of states and political subdivisions 259,627 2,122 (419 ) 261,330 Mortgage-backed securities 66,577 - (473 ) 66,104 Total held to maturity securities $ 345,744 $ 2,182 $ (1,079 ) $ 346,847 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2014 COST GAINS (LOSSES) VALUE (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 September 30, 2015 Issuer (1) Amortized Cost Fair Value Unrealized S&P Credit Rating Moody's (Dollars in Thousands) Key Corp. Capital I $ 4,986 $ 4,189 $ (797 ) BB+ Baa2 Huntington Capital Trust II SE 4,979 4,076 (903 ) BB Baa2 PNC Capital Trust 4,965 4,402 (563 ) BBB- Baa1 Total $ 14,930 $ 12,667 $ (2,263 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. At September 30, 2014 Issuer (1) Amortized Cost Fair Value Unrealized S&P Moody's (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, Held to Maturity or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income. HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities. Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2015, and 2014, are as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ - $ - $ 12,667 $ (2,263 ) $ 12,667 $ (2,263 ) Non-bank qualified obligations of states and political subdivisions 97,006 (860 ) 42,583 (955 ) 139,589 (1,815 ) Mortgage-backed securities 448,988 (4,301 ) 48,079 (564 ) 497,067 (4,865 ) Total debt securities 545,994 (5,161 ) 103,329 (3,782 ) 649,323 (8,943 ) Common equities and mutual funds - - 121 (8 ) 121 (8 ) Total available for sale securities $ 545,994 $ (5,161 ) $ 103,450 $ (3,790 ) $ 649,444 $ (8,951 ) 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 September 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 5,528 $ (34 ) $ 7,964 $ (153 ) $ 13,492 $ (187 ) Non-bank qualified obligations of states and political subdivisions 78,663 (365 ) 4,136 (54 ) 82,799 (419 ) Mortgage-backed securities 5,509 (43 ) 60,595 (430 ) 66,104 (473 ) Total held to maturity securities $ 89,700 $ (442 ) $ 72,695 $ (637 ) $ 162,395 $ (1,079 ) 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 ) As of September 30, 2015 and 2014, the investment portfolio included securities with current unrealized losses which have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2015 and 2014. The amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At September 30, 2015 (Dollars in Thousands) Due in one year or less $ - $ - Due after one year through five years 1,174 1,207 Due after five years through ten years 370,087 376,394 Due after ten years 302,596 300,989 673,857 678,590 Mortgage-backed securities 580,165 576,583 Common equities and mutual funds 639 914 Total available for sale securities $ 1,254,661 $ 1,256,087 AMORTIZED COST FAIR VALUE At 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 September 30, 2015 (Dollars in Thousands) Due in one year or less $ 95 $ 96 Due after one year through five years 8,411 8,430 Due after five years through ten years 140,145 140,505 Due after ten years 130,516 131,712 279,167 280,743 Mortgage-backed securities 66,577 66,104 Total held to maturity securities $ 345,744 $ 346,847 AMORTIZED COST FAIR VALUE At 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 Activities related to the sale of securities available for sale are summarized below. 2015 2014 2013 September 30, (Dollars in Thousands) Proceeds from sales $ 566,371 $ 166,804 $ 209,172 Gross gains on sales 2,753 2,292 2,947 Gross losses on sales 4,387 2,185 401 |
PREMISES, FURNITURE, AND EQUIPM
PREMISES, FURNITURE, AND EQUIPMENT, NET | 12 Months Ended |
Sep. 30, 2015 | |
PREMISES, FURNITURE, AND EQUIPMENT, NET [Abstract] | |
PREMISES, FURNITURE, AND EQUIPMENT, NET | NOTE 7. PREMISES, FURNITURE AND EQUIPMENT, NET Year-end premises and equipment were as follows: September 30, 2015 2014 (Dollars in Thousands) Land $ 1,578 $ 1,673 Buildings 10,315 12,275 Furniture, fixtures, and equipment 35,571 30,947 Capitalized leases 2,259 - 49,723 44,895 Less: accumulated depreciation and amortization (32,330 ) (28,433 ) Net book value $ 17,393 $ 16,462 Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $4.6 million, $3.5 million and $3.3 million for the years ended September 30, 2015, 2014 and 2013, respectively. Amortization expense on capitalized leases was $0.1 million, $0 and $0 and is included in occupancy and equipment expense. |
TIME CERTIFICATES OF DEPOSITS
TIME CERTIFICATES OF DEPOSITS | 12 Months Ended |
Sep. 30, 2015 | |
TIME CERTIFICATES OF DEPOSITS [Abstract] | |
TIME CERTIFICATES OF DEPOSITS | NOTE 8. TIME CERTIFICATES OF DEPOSITS Time certificates of deposits in denominations of $250,000 or more were approximately $38.5 million and $87.1 million at September 30, 2015, and 2014, respectively. At September 30, 2015, the scheduled maturities of time certificates of deposits were as follows for the years ending: September 30, (Dollars in Thousands) 2016 $ 66,964 2017 13,638 2018 5,594 2019 2,787 2020 2,188 Thereafter - Total Certificates $ 91,171 Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are permanently insured up to $250,000 by the DIF under management of the FDIC. Previous to the legislation in 2010, the coverage of $250,000 was temporary until December 2013. |
ADVANCES FROM THE FEDERAL HOME
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS | 12 Months Ended |
Sep. 30, 2015 | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS [Abstract] | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS | NOTE 9. ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS At September 30, 2015, the Company’s advances from the FHLB had fixed rates ranging from 6.97% to 7.01% with a weighted-average rate of 6.98%. The scheduled maturities of FHLB advances were as follows for the years ending: September 30, (Dollars in Thousands) 2016 $ - 2017 - 2018 - 2019 5,000 2020 2,000 Thereafter - Total FHLB Advances $ 7,000 The Company had $540.0 million of overnight federal funds purchased from the FHLB as of September 30, 2015. At September 30, 2014, the Company’s advances from the FHLB totaled $7.0 million and carried a weighted-average rate of 6.98%. The Company had $470.0 million in overnight federal funds purchased from the FHLB at September 30, 2014. The Bank has executed blanket pledge agreements whereby the Bank assigns, transfers, and pledges to the FHLB and grants to the FHLB a security interest in all mortgage collateral and securities collateral. The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB. Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement. At year-end 2015 and 2014, the Bank pledged securities with fair values of approximately $625.2 million and $422.9 million, respectively, against specific FHLB advances. In addition, qualifying mortgage loans of approximately $106.5 million, and $83.3 million were pledged as collateral at September 30, 2015, and 2014, respectively. |
SECURITIES SOLD UNDER AGREEMENT
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | 12 Months Ended |
Sep. 30, 2015 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Abstract] | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | NOTE 10. SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE Securities sold under agreements to repurchase totaled approximately $4.0 million and $10.4 million at September 30, 2015, and 2014, respectively. An analysis of securities sold under agreements to repurchase follows: September 30, 2015 2014 (Dollars in Thousands) Highest month-end balance $ 17,400 $ 33,999 Average balance 10,883 10,137 Weighted average interest rate for the year 0.52 % 0.52 % Weighted average interest rate at year end 0.58 % 0.52 % The Company pledged securities with fair values of approximately $20.6 million at September 30, 2015, as collateral for securities sold under agreements to repurchase. There were $36.4 million securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2014. |
SUBORDINATED DEBENTURES AND TRU
SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES | 12 Months Ended |
Sep. 30, 2015 | |
SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES [Abstract] | |
SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES | NOTE 11. SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES Subordinated debentures are due to First Midwest Financial Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The debentures were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities. The debentures bear the same interest rate and terms as the trust preferred securities. The debentures are included on the consolidated balance sheets as liabilities. The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely subordinated debt securities. Distributions are paid semi-annually. Cumulative cash distributions are calculated at a variable rate of London Interbank Offered Rate (“LIBOR”) plus 3.75% (4.28% at September 30, 2015, and 4.08% at September 30, 2014), not to exceed 12.5%. The Company may, at one or more times, defer interest payments on the capital securities for up to 10 consecutive semi-annual periods, but not beyond July 25, 2031. At the end of any deferral period, all accumulated and unpaid distributions are required to be paid. The capital securities are required to be redeemed on July 25, 2031; however, the Company has a semi-annual option to shorten the maturity date. The redemption price is $1,000 per capital security plus any accrued and unpaid distributions to the date of redemption. Holders of the capital securities have no voting rights, are unsecured and rank junior in priority of payment to all of the Company’s indebtedness and senior to the Company’s common stock. Although the securities issued by the Trust are not included as a component of stockholders’ equity, the securities are treated as capital for regulatory purposes, subject to certain limitations. |
EMPLOYEE STOCK OWNERSHIP AND PR
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS | 12 Months Ended |
Sep. 30, 2015 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS | NOTE 12. EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1,000 hours of employment with the Bank, have worked one year at the Bank and who have attained age 21. ESOP expense of $994,000, $703,000 and $694,000 was recorded for the years ended September 30, 2015, 2014 and 2013, respectively. Contributions of $992,038, $850,406 and $485,548 were made to the ESOP during the years ended September 30, 2015, 2014 and 2013, respectively. Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation. Benefits generally become 100% vested after seven years of credited service. Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule. Forfeitures are reallocated among remaining participating employees in the same proportion as contributions. Benefits are payable in the form of stock upon termination of employment. The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated. For the years ended September 30, 2015, 2014 and 2013, 23,750 shares, 24,125 shares and 17,715 shares with a fair value of $41.77, $35.25 and $37.99 per share, respectively, were released. Also for the years ended September 30, 2015, 2014 and 2013, allocated shares and total ESOP shares reflect 10,294 shares, 10,643 shares and 45,225 shares, respectively, withdrawn from the ESOP by participants who are no longer with the Company or by participants diversifying their holdings. At September 30, 2015, 2014 and 2013, there were 2,974, 2,529 and 3,526 shares purchased, respectively, for dividend reinvestment. Year-end ESOP shares are as follows: September 30, 2015 2014 2013 (Dollars in Thousands) Allocated shares 256,283 239,879 223,868 Unearned shares - - - Total ESOP shares 256,283 239,879 223,868 Fair value of unearned shares $ - $ - $ - The Company also has a profit sharing plan covering substantially all full-time employees. Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2015, 2014 and 2013 was $1.1 million, $0.9 million and $0.8 million, respectively. |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS | 12 Months Ended |
Sep. 30, 2015 | |
SHARE BASED COMPENSATION PLANS [Abstract] | |
SHARE BASED COMPENSATION PLANS | NOTE 13. SHARE-BASED COMPENSATION PLANS The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors. The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2015, 2014 and 2013. Year Ended September 30, 2015 2014 2013 (Dollars in Thousands) Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively $ 334 $ 120 $ 103 As of September 30, 2015, stock-based compensation expense not yet recognized in income totaled $0.4 million, which is expected to be recognized over a weighted-average remaining period of 1.93 years. At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model. The exercise price of stock options equals the fair market value of the underlying stock at the date of grant. Options are issued for 10-year periods with 100% vesting generally occurring either at grant date or over a four-year period. No options were granted during the years ended September 30, 2015, 2014 and 2013. The intrinsic value of options exercised during the years ended September 30, 2015, 2014 and 2013 were $0.9 million, $1.4 million and $0.8 million, respectively. Shares are granted each year to executives and senior leadership members under the Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares vest immediately. The total fair value of director’s shares granted during the years ended September 30, 2015, 2014 and 2013 was $0.2 million, $0.1 million and $0.1 million, respectively. In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan. No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2015; however, previously awarded options were exercised under this plan during the year. 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 during the years ended September 30, 2015 and 2014. 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 (46,678 ) 22.98 - 925 Forfeited or expired - - - - Options outstanding, September 30, 2015 189,088 $ 25.74 3.16 $ 3,027 Options exercisable end of year 189,088 $ 25.74 3.16 $ 3,027 Number of 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, 2013 318,648 $ 24.44 4.18 $ 4,376 Granted - - - - Exercised (82,882 ) 22.31 - 1,389 Forfeited or expired - - - - Options outstanding, September 30, 2014 235,766 $ 25.20 3.78 $ 2,507 Options exercisable end of year 235,766 $ 25.20 3.78 $ 2,507 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 51,217 41.10 Vested (11,215 ) 37.81 Forfeited or expired - - Nonvested shares outstanding, September 30, 2015 44,002 $ 40.80 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2013 4,000 $ 25.67 Granted 4,267 37.82 Vested (4,267 ) 35.07 Forfeited or expired - - Nonvested shares outstanding, September 30, 2014 4,000 $ 28.61 |
INCOME TAXES
INCOME TAXES | 12 Months Ended |
Sep. 30, 2015 | |
INCOME TAXES [Abstract] | |
INCOME TAXES | NOTE 14. INCOME TAXES The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes consists of: Years ended September 30, 2015 2014 2013 (Dollars in Thousands) Federal: Current $ 4,217 $ 3,787 $ 2,847 Deferred (3,896 ) (1,765 ) (536 ) 321 2,022 2,311 State: Current 1,048 874 1,252 Deferred (1 ) 10 141 1,047 884 1,393 Income tax expense $ 1,368 $ 2,906 $ 3,704 Total income tax expense differs from the statutory federal income tax rate as follows: Years ended September 30, 2015 2014 2013 (Dollars in Thousands) Income tax expense at federal tax rate $ 6,798 $ 6,517 $ 5,993 Increase (decrease) resulting from: State income taxes net of federal benefit 692 575 1,092 Nontaxable buildup in cash surrender value (711 ) (399 ) (349 ) Incentive stock option expense (37 ) (187 ) (97 ) Tax exempt income (5,230 ) (3,594 ) (2,815 ) Nondeductible expenses 188 120 41 Other, net (332 ) (126 ) (161 ) Total income tax expense (benefit) $ 1,368 $ 2,906 $ 3,704 The components of the net deferred tax asset (liability) at September 30, 2015 and 2014 are: September 30, 2015 2014 (Dollars in Thousands) Deferred tax assets: Bad debts $ 2,286 $ 1,955 Deferred compensation 1,040 708 Stock based compensation 235 271 Operational reserve 453 464 AMT Credit 4,490 2,239 Intangibles 573 Net unrealized losses on securities available for sale - 2,969 Indirect tax benefits of unrecognized tax positions 384 376 Other assets 1,293 759 10,754 9,741 Deferred tax liabilities: FHLB stock dividend (414 ) (410 ) Premises and equipment (1,222 ) (1,060 ) Patents (967 ) (937 ) Prepaid expenses (633 ) (743 ) Net unrealized gains on securities available for sale (521 ) - Deferred loan fees - - (3,757 ) (3,150 ) Net deferred tax assets (liabilities) $ 6,997 $ 6,591 As of September 30, 2015 and 2014, the Company had a gross deferred tax asset of $829,000 and $780,000, respectively, for separate company state cumulative net operating loss carryforwards, which was fully reserved for as the Company does not anticipate any state taxable income at the holding company level in future periods. Finally, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2015, and 2014 with the exception of the state cumulative net operating loss carryforwards discussed above. Federal income tax laws provided savings banks with additional bad debt deductions through September 30, 1987, totaling $6.7 million for the Bank. Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability otherwise would total approximately $2.3 million at September 30, 2015 and 2014. If the Bank were to be liquidated or otherwise cease to be a bank, or if tax laws were to change, the $2.3 million would be recorded as expense. The provisions of ASC 740, Income Taxes, The Company’s tax reserves reflect management’s judgment as to the resolution of the issues involved if subject to judicial review. While the Company believes that its reserves are adequate to cover reasonably expected tax risks, there can be no assurance that, in all instances, an issue raised by a tax authority will be resolved at a financial cost that does not exceed its related reserve. With respect to these reserves, the Company’s income tax expense would include (i) any changes in tax reserves arising from material changes during the period in the facts and circumstances surrounding a tax issue, and (ii) any difference from the Company’s tax position as recorded in the consolidated financial statements and the final resolution of a tax issue during the period The tax years ended September 30, 2012 and later remain subject to examination by the Internal Revenue Service. For state purposes, the tax years ended September 30, 2012 and later remain open for examination, with few exceptions. A federal income tax review for fiscal year ended September 30, 2012, was completed in the current fiscal year. The review resulted in no changes being made. A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2015, and 2014 follows: September 30, 2015 2014 (Dollars in Thousands) Balance at beginning of year $ 983 $ 931 Additions for tax positions related to the current year 49 118 Additions for tax positions related to the prior years 4 - Reductions for tax positions due to settlement with taxing authorities (62 ) (16 ) Reductions for tax positions related to prior years - (50 ) Balance at end of year $ 974 $ 983 The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $641,000 as of September 30, 2015. The Company recognizes interest related to unrecognized tax benefits as a component of income tax expense. The amount of accrued interest related to unrecognized tax benefits was $155,000 as of September 30, 2015. The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months. |
CAPITAL REQUIREMENTS AND RESTRI
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | 12 Months Ended |
Sep. 30, 2015 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract] | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS | NOTE 15. CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS In July 2013, the Company’s primary federal regulator, the Federal Reserve and the Bank’s primary federal regulator, the OCC, approved final rules (the “Basel III Capital Rules”) establishing a new comprehensive capital framework for U.S. banking organizations. The Basel III Capital Rules generally implement the Basel Committee on Banking Supervision’s (the “Basel Committee”) December 2010 final capital framework referred to as “Basel III” for strengthening international capital standards. The Basel III Capital Rules substantially revise the risk-based capital requirements applicable to financial institution holding companies and their depository institution subsidiaries, including us and the Bank, as compared to the current U.S. general risk-based capital rules. The Basel III Capital Rules revise the definitions and the components of regulatory capital, as well as address other issues affecting the numerator in banking institutions’ regulatory capital ratios. The Basel III Capital Rules also address asset risk weights and other matters affecting the denominator in banking institutions’ regulatory capital ratios and replace the existing general risk-weighting approach, which was derived from the Basel Committee’s 1988 “Basel I” capital accords, with a more risk-sensitive approach based, in part, on the “standardized approach” in the Basel Committee’s 2004 “Basel II” capital accords. In addition, the Basel III Capital Rules implement certain provisions of the Dodd-Frank Act, including the requirements of Section 939A to remove references to credit ratings from the federal agencies’ rules. The Basel III Capital Rules became effective for us and the Bank on January 1, 2015, subject to phase-in periods for certain of their components and other provisions. Pursuant to the Basel III Capital Rules, our Company and Bank, respectively, are subject to new regulatory capital adequacy requirements promulgated by the Federal Reserve and the OCC. Failure by our Company or Bank to meet minimum capital requirements could result in certain mandatory and discretionary actions by our regulators that could have a material adverse effect on our consolidated financial statements. Prior to January 1, 2015, our Bank was subject to capital requirements under Basel I and there were no capital requirements for our Company. Under the capital requirements and the regulatory framework for prompt corrective action, our Company and Bank must meet specific capital guidelines that involve quantitative measures of our Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. Our Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require the Company and the Bank to maintain minimum amounts and ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At September 30, 2015, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements. The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components. The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity. Company (Actual) Bank (Actual) Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2015 Tier 1 (core) capital (to adjusted total assets) $ 224,426 9.36 % $ 213,220 8.89 % $ 8,977 4.00 % $ 11,221 5.00 % Common equity Tier 1 (to risk-weighted assets) 216,931 19.85 213,220 19.52 9,762 4.50 14,101 6.50 Tier 1 (core) capital (to risk-weighted assets) 224,426 20.54 213,220 19.52 13,466 6.00 17,954 8.00 Total qualifying capital (to risk-weighted assets) 230,820 21.12 219,614 20.11 18,466 8.00 23,082 10.00 September 30, 2014 Tangible capital (to tangible assets) $ 176,388 8.60 % $ 176,388 8.60 % $ 30,771 1.50 % $ n/ a n/a % Tier 1 (core) capital (to adjusted total assets) 176,388 8.60 176,388 8.60 82,057 4.00 102,571 5.00 Tier 1 (core) capital (to risk-weighted assets) 176,388 20.95 176,388 20.95 33,672 4.00 50,508 6.00 Total risk based capital (to risk-weighted assets) 181,786 21.59 181,786 21.59 67,344 8.00 84,180 10.00 The following table provides a reconciliation of the amounts included in the table above for the Company. Standardized Approach (1) September 30, 2015 (Dollars in Thousands) Total equity $ 271,335 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 36,642 LESS: Certain other intangible assets 13,431 LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 1,876 LESS: Net unrealized gains (losses) on available-for-sale securities 2,455 Common Equity Tier 1 (1) 216,931 Long-term debt and other instruments qualifying as Tier 1 10,310 LESS: Additional tier 1 capital deductions 2,815 Total Tier 1 capital 224,426 Allowance for loan losses 6,394 Total qualifying capital 230,820 (1) Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. Beginning January 1, 2016, Basel III implements a requirement for all banking organizations to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer will be exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. On January 1, 2016, our Company and Bank will be expected to comply with the capital conservation buffer requirement, which will increase the three risk-based capital ratios by 0.625% each year through 2019, at which point the Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 12 Months Ended |
Sep. 30, 2015 | |
COMMITMENTS AND CONTINGENCIES [Abstract] | |
COMMITMENTS AND CONTINGENCIES | NOTE 16. COMMITMENTS AND CONTINGENCIES In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying consolidated financial statements. At September 30, 2015 and 2014, unfunded loan commitments approximated $158.3 million and $96.0 million, respectively, excluding undisbursed portions of loans in process. Unfunded loan commitments at September 30, 2015 and 2014 were principally for variable rate loans. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are cancelled upon expiration of the commitment term as outlined in each individual contract. At September 30, 2015, the Company had two commitments to purchase securities available for sale totaling $7.9 million and three commitments to purchase securities held to maturity totaling $3.0 million. The Company had no commitments to purchase securities at September 30, 2014. The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments. The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Since certain commitments to make loans and to fund lines of credit expire without being used, the amount does not necessarily represent future cash commitments. In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Securities with fair values of approximately $5.8 million at September 30, 2015 and 2014 were pledged as collateral for public funds on deposit. Securities with fair values of approximately $0 and $7.4 million at September 30, 2015, and 2014, respectively, were pledged as collateral for individual, trust and estate deposits. Legal Proceedings The Bank has been named as a defendant, along with other defendants, in four class action litigations commenced in three different federal district courts between October 23, 2015 and November 5, 2015: (1) Fuentes, et al. v. UniRush LLC, et al. Huff et al. v. UniRush, LLC et al. Peterkin v. UniRush LLC, et al. Jones v. UniRush, LLC et al. 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 that had been purchased were never activated or funded. Counsel for these companies have indicated that they are prepared to assert claims totaling approximately $1.5 million against MetaBank based on principal/agency or failure to supervise theories. The Company denies liability with respect to these claims. The Company’s estimate of a range of reasonably possible loss is approximately $0 to $0.3 million. The Bank commenced action against C&B Farms, LLC, Dakota River Farms, LLC, Dakota Grain Farms, LLC, Heather Swenson and Tracy Clement in early July, 2015, in the Third Judicial Circuit Court of the State of South Dakota, seeking to collect upon certain delinquent loans made in connection with the 2014 farming operations of the three identified limited liability companies and the personal guaranties of Swenson and Clement. The three companies and Clement have answered the Complaint and asserted a counterclaim against the Bank and a third-party claim against the Bank’s loan officer. The counterclaim and third-party claim allege that the Bank and its loan officer made certain statements to Clement in early 2015 indicating that the Bank would renew the operating lines and provide financing to the entities for the 2015 growing season. The claimants assert that the Bank abruptly changed course in March, 2015, and ultimately declined to extend new operating lines to the defendants for the 2015 season. The claimants assert that the Bank’s conduct amounted to a fraud and misrepresentation. Additionally, they assert promissory estoppel based on their reliance upon the Bank’s earlier assurances of additional credit from the Bank to their detriment. They assert unspecified damages based on the Bank’s alleged actions, including higher costs of financing from a new lender and, additionally, that they were unable to take advantage of other discount and sale opportunities to their detriment. The Bank intends to vigorously defend the claims. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted. Other than the matters set forth above, 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. |
LEASE COMMITMENTS
LEASE COMMITMENTS | 12 Months Ended |
Sep. 30, 2015 | |
LEASE COMMITMENTS [Abstract] | |
LEASE COMMITMENTS | NOTE 17. LEASE COMMITMENTS The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2036, and require annual rentals ranging from $600 to $789,000 plus the payment of the property taxes, normal maintenance, and insurance on certain property. The Company also entered into capital lease agreements during fiscal year ended September 30, 2015, for building and equipment expiring at various times through 2035. Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2015, and included in noninterest expense. The following table shows the total minimum rental commitment for our operating and capital leases as of September 30, 2015. Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2016 $ 1,708 $ 252 2017 1,752 201 2018 1,464 179 2019 1,394 179 2020 1,277 182 Thereafter 12,476 2,604 Total Leases Commitments $ 20,071 $ 3,597 Amounts representing interest $ 1,454 Present value of net minimum lease payments 2,143 |
SEGMENT REPORTING
SEGMENT REPORTING | 12 Months Ended |
Sep. 30, 2015 | |
SEGMENT REPORTING [Abstract] | |
SEGMENT REPORTING | NOTE 18. SEGMENT REPORTING An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met. The Company has determined that it has two reportable segments. The first reportable segment, Retail Banking, a division of the Bank, which includes AFS/IBEX 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, which includes Refund Advantage 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 and services. 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. Retail Banking Meta Payment Systems ® All Others Total Year Ended September 30, 2015 Interest income $ 33,980 $ 21,590 $ 6,037 $ 61,607 Interest expense 1,675 169 543 2,387 Net interest income (expense) 32,305 21,421 5,494 59,220 Provision (recovery) for loan losses 1,000 - 465 1,465 Non-interest income 2,243 54,417 1,514 58,174 Non-interest expense 23,780 66,415 6,311 96,506 Income (loss) before income tax expense (benefit) 9,768 9,423 232 19,423 Income tax expense (benefit) 688 663 17 1,368 Net income (loss) $ 9,080 $ 8,760 $ 215 $ 18,055 Inter-segment revenue (expense) $ (16,547 ) $ 16,547 $ - $ - Total assets 840,177 1,579,856 109,672 2,529,705 Total deposits 242,580 1,424,304 (9,350 ) 1,657,534 Retail Banking Meta Payment Systems ® All Others Total Year Ended September 30, 2014 Interest income $ 31,635 $ 17,025 $ - $ 48,660 Interest expense 1,926 124 348 2,398 Net interest income (expense) 29,709 16,901 (348 ) 46,262 Provision (recovery) for loan losses 1,150 - - 1,150 Non-interest income 3,214 48,524 - 51,738 Non-interest expense 21,227 56,234 770 78,231 Income (loss) before income tax expense (benefit) 10,546 9,191 (1,118 ) 18,619 Income tax expense (benefit) 1,846 1,482 (422 ) 2,906 Net income (loss) $ 8,700 $ 7,709 $ (696 ) $ 15,713 Inter-segment revenue (expense) $ 12,793 $ (12,793 ) $ - $ - Total assets 805,494 1,245,110 3,427 2,054,031 Total deposits 273,399 1,099,548 (6,406 ) 1,366,541 Retail Banking Meta Payment Systems ® All Others Total Year Ended September 30, 2014 Interest income $ 24,169 $ 14,807 $ - $ 38,976 Interest expense 2,361 124 469 2,954 Net interest income (expense) 21,808 14,683 (469 ) 36,022 Provision (recovery) for loan losses - - - - Non-interest income 5,226 50,290 (13 ) 55,503 Non-interest expense 19,479 53,983 941 74,403 Income (loss) before income tax expense (benefit) 7,555 10,990 (1,423 ) 17,122 Income tax expense (benefit) 1,615 2,611 (522 ) 3,704 Net income (loss) $ 5,940 $ 8,379 $ (901 ) $ 13,418 Inter-segment revenue (expense) $ 12,106 $ (12,106 ) $ - $ - Total assets 487,754 1,201,531 2,704 1,691,989 Total deposits 260,525 1,063,770 (9,012 ) 1,315,283 |
PARENT COMPANY FINANCIAL STATEM
PARENT COMPANY FINANCIAL STATEMENTS | 12 Months Ended |
Sep. 30, 2015 | |
PARENT COMPANY FINANCIAL STATEMENTS [Abstract] | |
PARENT COMPANY FINANCIAL STATEMENTS | NOTE 19. PARENT COMPANY FINANCIAL STATEMENTS Presented below are condensed financial statements for the parent company, Meta Financial. CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, 2015 2014 (Dollars in Thousands) ASSETS Cash and cash equivalents $ 14,280 $ 9,439 Investment in subsidiaries 267,623 175,568 Other assets 408 393 Total assets $ 282,311 $ 185,400 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Subordinated debentures $ 10,310 $ 10,310 Other liabilities 666 288 Total liabilities $ 10,976 $ 10,598 STOCKHOLDERS' EQUITY Common stock $ 82 $ 62 Additional paid-in capital 170,749 95,079 Retained earnings 98,359 83,797 Accumulated other comprehensive income (loss) 2,455 (3,409 ) Treasury stock, at cost (310 ) (727 ) Total stockholders' equity $ 271,335 $ 174,802 Total liabilities and stockholders' equity $ 282,311 $ 185,400 CONDENSED STATEMENTS OF OPERATIONS Years ended September 30, 2015 2014 2013 (Dollars in Thousands) Total other income $ - $ - $ - Interest expense 418 348 469 Other expense 269 770 941 Total expense 687 1,118 1,410 Gain (loss) before income taxes and equity in undistributed net income of subsidiaries (687 ) (1,118 ) (1,410 ) Income tax benefit (324 ) (422 ) (509 ) Gain (loss) before equity in undistributed net income of subsidiaries (363 ) (696 ) (901 ) Equity in undistributed net income of subsidiaries 18,418 16,409 14,319 Net income $ 18,055 $ 15,713 $ 13,418 CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2015 2014 2013 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 18,055 $ 15,713 $ 13,418 Adjustments to reconcile net income to net cash provided by (used in) operating activites Depreciation, amortization and accretion, net - (310 ) - Equity in undistributed net income of subsidiaries (18,418 ) (16,409 ) (14,319 ) Change in other assets (15 ) 246 54 Change in other liabilities 378 (332 ) (339 ) Net cash provided by (used in) operating activities (0 ) (1,092 ) (1,186 ) CASH FLOWS FROM INVESTING ACTIVITES Capital contributions to subsidiaries (67,600 ) - (6,000 ) Net cash provided by (used in) investing activites (67,600 ) - (6,000 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (3,493 ) (3,184 ) (2,926 ) Stock compensation 253 4 165 Proceeds from issuance of common stock 75,471 (51 ) 12,718 Proceeds from exercise of stock options 210 2,376 2,548 Other, net - - (38 ) Net cash provided by (used in) financing activities 72,441 (855 ) 12,467 Net change in cash and cash equivalents $ 4,841 $ (1,947 ) $ 5,281 CASH AND CASH EQUIVALENTS Beginning of year $ 9,439 $ 11,386 $ 6,105 End of year $ 14,280 $ 9,439 $ 11,386 The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company. For further discussion, see Note 15 herein. |
SELECTED QUARTERLY FINANCIAL DA
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | 12 Months Ended |
Sep. 30, 2015 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) | NOTE 20. SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) QUARTER ENDED December 31 March 31 June 30 September 30 (Dollars in Thousands) Fiscal Year 2015 Interest income $ 14,232 $ 15,758 $ 15,254 $ 16,363 Interest expense 661 473 593 660 Net interest income 13,571 15,285 14,661 15,703 Provision (recovery) for loan losses 48 593 700 124 Net Income (loss) 3,595 5,181 4,640 4,639 Earnings (loss) per common and common equivalent share Basic $ 0.58 $ 0.79 $ 0.67 $ 0.64 Diluted 0.58 0.78 0.66 0.64 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2014 Interest income $ 11,162 $ 12,063 $ 12,566 $ 12,869 Interest expense 649 544 638 567 Net interest income 10,513 11,519 11,928 12,302 Provision (recovery) for loan losses - 300 300 550 Net Income (loss) 4,002 4,144 4,204 3,363 Earnings (loss) per common and common equivalent share Basic $ 0.66 $ 0.68 $ 0.69 $ 0.54 Diluted 0.65 0.67 0.68 0.53 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2013 Interest income $ 9,630 $ 9,718 $ 9,825 $ 9,803 Interest expense 833 813 666 642 Net interest income 8,797 8,905 9,159 9,161 Provision (recovery) for loan losses - (300 ) - 300 Net Income (loss) 3,125 3,147 3,672 3,474 Earnings (loss) per common and common equivalent share Basic $ 0.57 $ 0.57 $ 0.67 $ 0.59 Diluted 0.57 0.57 0.66 0.58 Dividend declared per share 0.13 0.13 0.13 0.13 |
FAIR VALUES OF FINANCIAL INSTRU
FAIR VALUES OF FINANCIAL INSTRUMENTS | 12 Months Ended |
Sep. 30, 2015 | |
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract] | |
FAIR VALUES OF FINANCIAL INSTRUMENTS | NOTE 21. FAIR VALUES OF FINANCIAL INSTRUMENTS Accounting Standards Codification (“ASC”) 820, Fair Value Measurements The fair value hierarchy is as follows: Level 1 Inputs Level 2 Inputs Level 3 Inputs There were no transfers between levels of the fair value hierarchy for the years ended September 30, 2015 and 2014. 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 on asset class and include available trade, bid, and other market information. This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third-party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness. The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2015 and 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 September 30, 2015 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Trust preferred and corporate securities $ 13,944 $ - $ 13,944 $ - $ - $ - $ - $ - Small business administration securities 56,056 - 56,056 - - - - - Obligations of states and political subdivisions - - - - 19,413 - 19,413 - Non-bank qualified obligations of states and political subdivisions 608,590 - 608,590 - 261,330 - 261,330 - Mortgage-backed securities 576,583 - 576,583 - 66,104 - 66,104 - Total debt securities 1,255,173 - 1,255,173 - 346,847 - 346,847 - Common equities and mutual funds 914 914 - - - - - - Total securities $ 1,256,087 $ 914 $ 1,255,173 $ - $ 346,847 $ - $ 346,847 $ - Fair Value At 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 September 30, 2015 and 2014. Fair Value at September 30, 2015 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net Commercial and multi-family real estate loans $ 663 $ - $ - $ 663 Agricultural operating loans 1,880 - - 1,880 Total $ 2,543 $ - $ - $ 2,543 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 September 30, 2015 Fair Value at September 30, 2014 Valuation Technique Unobservable Input Impaired Loans, net $ 2,543 $ 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 September 30, 2015 and 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 September 30, 2015 and 2014. September 30, 2015 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 27,658 $ 27,658 $ 27,658 $ - $ - Securities available for sale 1,256,087 1,256,087 914 1,255,173 - Securities held to maturity 345,743 346,847 - 346,847 - Total securities 1,601,830 1,602,934 914 1,602,020 - Loans receivable: One to four family residential mortgage loans 125,021 121,385 - - 121,385 Commercial and multi-family real estate loans 310,199 314,372 - - 314,372 Agricultural real estate loans 64,316 66,682 - - 66,682 Consumer loans 33,527 33,504 - - 33,504 Commercial operating loans 29,893 23,245 - - 23,245 Agricultural operating loans 43,626 40,003 - - 40,003 Premium finance loans 106,505 108,583 - - 108,583 Total loans receivable 713,087 707,774 - - 707,774 Federal Home Loan Bank stock 24,410 24,410 - 24,410 - Accrued interest receivable 13,352 13,352 13,352 - - Financial liabilities Noninterest bearing demand deposits 1,449,101 1,369,672 1,369,672 - - Interest bearing demand deposits, savings, and money markets 117,262 115,204 115,204 - - Certificates of deposit 91,171 91,304 - 91,304 - Total deposits 1,657,534 1,576,180 1,484,876 91,304 - Advances from Federal Home Loan Bank 7,000 8,630 - 8,630 - Federal funds purchased 540,000 540,000 - 540,000 - Securities sold under agreements to repurchase 4,007 4,007 - 4,007 - Subordinated debentures 10,310 10,416 - 10,416 - Accrued interest payable 272 272 272 - - 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 10,414 - 10,414 - 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 September 30, 2015 and 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., FHLB STOCK The fair value of such stock is assumed to approximate book value since the Company is generally able to redeem this stock at par value. ACCRUED INTEREST RECEIVABLE The carrying amount of accrued interest receivable is assumed to approximate the fair value. DEPOSITS The carrying values of non-interest-bearing checking deposits, interest-bearing checking deposits, savings 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 | 12 Months Ended |
Sep. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS [Text Block] | NOTE 22. GOODWILL AND INTANGIBLE ASSETS The Company recorded a total of $36.9 million of goodwill during the fiscal year ended September 30, 2015, due to two separate business combinations – $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage, on September 8, 2015. The goodwill associated with these transactions are deductible for tax purposes. As part of the each business combination, the Company also recognized the following amortizable intangible assets: AFS/IBEX: Intangible Amount Book Amortization Period (Years) Method Trademark $ 540 15 Straight Line Non-Compete $ 260 3 Straight Line Customer Relationships $ 7,240 30 Accelerated Other $ 173 Varied Straight Line Refund Advantage: Intangible Amount Book Amortization Period (Years) Method Trademark $ 4,950 15 Accelerated Non-Compete $ 40 3 Straight Line Customer Relationships $ 18,800 12 to 20 Accelerated Other $ 329 Varied Straight Line The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2015 and 2014 are as follows: September 30, 2015 2014 (Dollars in Thousands) Goodwill Balance as of September 30, 2014 $ - $ - Acquisitions during the period 36,928 - Write-offs during the period - - Balance as of September 30, 2015 $ 36,928 $ - The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2015. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded quantitative analysis was not required and no impairment existed. Trademark Non-Compete Customer Relationships All Others Total Intangibles Balance as of September 30, 2014 $ - $ - $ - $ 2,588 $ 2,588 Acquisitions during the period 5,490 300 26,040 855 32,685 Amortization during the period (51 ) (73 ) (1,229 ) (282 ) (1,635 ) Write-offs during the period - - - (61 ) (61 ) Balance as of September 30, 2015 $ 5,439 $ 227 $ 24,811 $ 3,100 $ 33,577 Trademark Non-Compete Customer Relationships All Others Total Intangibles Balance as of September 30, 2013 $ - $ - $ - $ 2,339 $ 2,339 Acquisitions during the period - - - 331 331 Amortization during the period - - - (78 ) (78 ) Write-offs during the period - - - (4 ) (4 ) Balance as of September 30, 2014 $ - $ - $ - $ 2,588 $ 2,588 The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The anticipated future amortization of intangibles is as follows: September 30, (Dollars in Thousands) 2016 $ 4,819 2017 4,116 2018 3,517 2019 3,001 2020 2,598 Thereafter 15,526 Total anticipated intangible amortization $ 33,577 |
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS | 12 Months Ended |
Sep. 30, 2015 | |
SUBSEQUENT EVENTS [Abstract] | |
SUBSEQUENT EVENTS | NOTE 23. SUBSEQUENT EVENTS Management has evaluated subsequent events. There were no material subsequent events that would require recognition or disclosure, other than noted above, in our consolidated financial statements as of and for the year ended September 30, 2015. |
SUMMARY OF SIGNIFICANT ACCOUN33
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies) | 12 Months Ended |
Sep. 30, 2015 | |
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES [Abstract] | |
PRINCIPLES OF CONSOLIDATION | PRINCIPLES OF CONSOLIDATION The consolidated financial statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency and First Services Financial Limited, which offered noninsured investment products and was dissolved on December 3, 2013. The Company also owns 100% of First Midwest Financial Capital Trust I (the “Trust”), which was formed in July 2001 for the purpose of issuing trust preferred securities. The Trust is not included in the consolidated financial statements of the Company. All significant intercompany balances and transactions have been eliminated. |
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION | NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION The primary source of income relates to payment processing services for prepaid debit cards, ATM sponsorship, tax refund transfer and other money transfer systems and services. Additionally, a significant source of income for the Company is interest from the purchase or origination of consumer, commercial, agricultural, commercial real estate, and residential real estate loans. The Company accepts deposits from customers in the normal course of business primarily in northwest and central Iowa, and eastern South Dakota and on a national basis for the MPS division. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of two reporting segments. |
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS | USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. Actual results could differ from those estimates. Certain significant estimates include the allowance for loan losses, the valuation of intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future. |
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD | CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and FHLB advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was $4.1 million and $8.3 million at September 30, 2015, and 2014, respectively. The Company at times maintains balances in excess of insured limits at various financial institutions including the FHLB, the FRB and other private institutions. At September 30, 2015, the Company had no interest-bearing deposits held at the FHLB and $7.2 million in interest-bearing deposits held at the FRB. At September 30, 2015, the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent. |
SECURITIES | SECURITIES GAAP 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 (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta Financial has no trading securities. The Company classifies the majority of its securities as AFS. AFS securities are those the Company may decide to sell if needed for liquidity, asset-liability management or other reasons. During the 2013 fiscal year, the Company reclassified a portion of its securities portfolio from the AFS to the HTM category. The reclassification was made to better reflect the revised intentions of the Company to maintain these securities in its portfolio; in response to the potential impact on tangible book value should interest rates rise, due to the mark to market on these bonds; and to mitigate possible negative impacts on its regulatory capital under the proposed Dodd-Frank and Basel III capital guidelines, whereby unrealized losses on AFS securities could become a direct deduction from regulatory capital. Subsequent to the reclassification and prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done. Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale. Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned. The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs). The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities. Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information. This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Securities Impairment Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity. To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized. If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value. If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated. For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes. The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security. The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security. In fiscal 2015, 2014 and 2013, there was no other-than-temporary impairment recorded. |
LOANS RECEIVABLE | LOANS RECEIVABLE Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances reduced by the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued over the term of the loans based upon the amount of principal outstanding except when serious doubt exists as to the collectability of a loan, in which case the accrual of interest is discontinued. Interest income is subsequently recognized only to the extent that cash payments are received until, in management’s judgment, the borrower has demonstrated a continued ability to make contractual interest and principal payments, in which case the loan is returned to accrual status. Loan fees and certain direct loan origination costs are deferred, and the net fee or cost is recognized as an adjustment to interest income using the interest method. As part of the Company’s ongoing risk management practices, management attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay. Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance. Each occurrence is unique to the borrower and is evaluated separately. In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”). Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed. As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan. Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects. The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR. For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor. If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider. Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt. Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing. The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan. Generally, when a loan becomes delinquent 90 days or more for Retail Bank or 210 days or more for Premium Finance or when the collection of principal or interest becomes doubtful, the Company will place the loan on a non-accrual status and, as a result, previously accrued interest income on the loan is reversed against current income. The loan will remain on a non-accrual status until the loan becomes current and has demonstrated a sustained period of satisfactory performance. |
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS | MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS The Company, from time to time, sells loan participations, generally without recourse. Sold loans are not included in the consolidated financial statements. The Bank generally retains the right to service the sold loans for a fee. At September 30, 2015 and 2014, the Bank was servicing loans for others with aggregate unpaid principal balances of $22.2 million and $22.6 million, respectively. |
ALLOWANCE FOR LOAN LOSSES | ALLOWANCE FOR LOAN LOSSES The allowance for loan losses represents management’s estimate of probable loan losses that have been incurred as of the date of the consolidated financial statements. The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries). Estimating the risk of loss and the amount of loss on any loan is necessarily subjective. Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s and peer group’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions. While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur. The allowance consists of specific, general and unallocated components. The specific component relates to impaired loans. Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories. Non-accrual loans and all TDRs are considered impaired. Impaired loans, or portions thereof, are charged off when deemed uncollectible. Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent. For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan. The general reserve covers loans not considered impaired and is comprised of both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2015 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”). · The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past five years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized. · In prior periods, management utilized a three-year historical loss experience methodology. A five-year LBP is appropriate to capture a wider range of losses due to historically low levels in recent years and to continue to factor in loss experience resulting from the credit crisis and other factors. · The LEP is an estimate of the average amount of time from the point the customer incurs a loss to the point the loss is confirmed by the Company. During management’s most recent periodic evaluation, we studied the LEPs for our loan portfolio utilizing Company charge-off history. The LEP is only applied to the non-classified homogeneous loan general reserve. The main assumptions for the quantitative components in 2014 are historical loss rates and other qualitative adjustments. Qualitative adjustment considerations for the general reserve include considerations of changes in lending policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan portfolio, changes in lending management and staff, trending in past due, classified, nonaccrual, and other loan categories, changes in the Company’s loan review system and oversight, changes in collateral values, credit concentration risk, and the regulatory and legal requirements and environment. An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses. The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio. |
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS | FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS Real estate properties and repossessed assets acquired through, or in lieu of, loan foreclosure are initially recorded at fair value less selling costs at the date of foreclosure, establishing a new cost basis. Any reduction to fair value from the carrying value of the related loan at the time of acquisition is accounted for as a loan loss and charged against the allowance for loan losses. Valuations are periodically performed by management and valuation allowances are increased through a charge to income for reductions in fair value or increases in estimated selling costs. |
INCOME TAXES | INCOME TAXES The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized. In accordance with ASC 740, Income Taxes |
PREMISES, FURNITURE, AND EQUIPMENT | PREMISES, FURNITURE AND EQUIPMENT Land is carried at cost. Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization. Capital leases, where we are the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. We primarily use the straight-line method of depreciation over the estimated useful lives of the assets, which range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. We amortize capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. |
TRANSFERS OF FINANCIAL ASSETS | TRANSFERS OF FINANCIAL ASSETS Transfers of financial assets are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been legally isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. |
BANK-OWNED LIFE INSURANCE | BANK-OWNED LIFE INSURANCE Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts. Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs. |
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP) | EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”) The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the consolidated statements of financial condition as a reduction of stockholders’ equity. Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts. The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital. Dividends on allocated ESOP shares are recorded as a reduction of retained earnings. Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company. At September 30, 2015 and 2014, all shares in the ESOP were allocated. |
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK | FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK The Company, in the normal course of business, makes commitments to make loans which are not reflected in the consolidated financial statements. |
INTANGIBLE ASSETS | INTANGIBLE ASSETS Intangible assets other than goodwill are amortized over their respective estimated lives. All intangible assets are subject to an impairment test at least annually or more often if conditions indicate a possible impairment. |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE | SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE The Company enters into sales of securities under agreements to repurchase with primary dealers only, which provide for the repurchase of the same security. Securities sold under agreements to repurchase identical securities are collateralized by assets which are held in safekeeping in the name of the Bank or by the dealers who arranged the transaction. Securities sold under agreements to repurchase are treated as financings, and the obligations to repurchase such securities are reflected as a liability. The securities underlying the agreements remain in the asset accounts of the Company. |
REVENUE RECOGNITION | REVENUE RECOGNITION Interest revenue from loans and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan or investment. Income from service and other customer charges is recognized as earned. Revenue within the MPS division is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. |
EARNINGS PER COMMON SHARE ("EPS") | EARNINGS PER COMMON SHARE (“EPS”) Basic EPS is based on the net income divided by the weighted-average number of common shares outstanding during the period. Allocated ESOP shares are considered outstanding for earnings per common share calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding. Diluted EPS shows the dilutive effect of additional potential common shares issuable under stock option plans. |
COMPREHENSIVE INCOME (LOSS) | COMPREHENSIVE INCOME (LOSS) Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income includes the change in net unrealized gains and losses on securities available for sale, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity. |
STOCK COMPENSATION | STOCK COMPENSATION Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant. The exercise price of options or fair value of nonvested 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 have been negligible. |
NEW ACCOUNTING PRONOUNCEMENTS | NEW ACCOUNTING PRONOUNCEMENTS Accounting Standards Update (“ASU”) No 2015-16 – Business Combinations (Topic 805): Simplifying the Accounting for Measurement-Period Adjustments This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined. Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date. This update is in effect for annual and interim periods beginning after December 15, 2015, and the Company does not expect a material impact on the Company’s consolidated financial statements. 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 was effective for annual and interim periods beginning after December 15, 2014, and does not have a material impact on the Company’s consolidated financial statements. ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) This ASU provides guidance on when to recognize revenue from contracts with customers. The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements. The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation. This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements. ASU No. 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 was effective for annual and interim periods beginning after December 15, 2014, and will not 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. |
ACQUISITIONS (Tables)
ACQUISITIONS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
Business Acquisition [Line Items] | |
Unaudited Pro forma Summary Financial Results Present Consolidated Results of Operations | The following unaudited pro forma summary financial results present the consolidated results of operations as if the acquisition of Refund Advantage had occurred as of October 1, 2013, after the effect of certain adjustments, including amortization of certain identifiable intangible assets, income and expense items not attributable to ongoing operations and related tax effects. The unaudited pro forma condensed consolidated statement of operations does not include any adjustments for any restructuring activities, operating efficiencies or cost savings. The pro forma results have been presented for comparative purposes only and are not indicative of what would have occurred had the Refund Advantage acquisition been made as of October 1, 2013, or of any potential results which may occur in the future. September 30, 2015 2014 (Dollars in Thousands) Total income $ 142,876 $ 127,150 Net income attributable to common stock $ 19,724 $ 19,087 Basic earnings per common share 2.51 2.64 Diluted earnings per common share 2.49 2.61 Basic weighted-average common shares, issued and outstanding 7,850,582 7,229,536 Diluted weighted-average common shares, issued and outstanding 7,915,811 7,314,669 |
AFS/IBEX Financial Services Inc [Member] | |
Business Acquisition [Line Items] | |
Approximate Fair Value of Assets Acquired and Liabilities Assumed | The following table represents the approximate fair value of assets acquired and liabilities assumed of 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 |
Refund Advantage [Member] | |
Business Acquisition [Line Items] | |
Approximate Fair Value of Assets Acquired and Liabilities Assumed | The following table represents the approximate fair value of assets acquired and liabilities assumed of Refund Advantage on the consolidated balance sheet as of September 8, 2015: As of September 8, 2015 (Dollars in Thousands) Fair value of consideration paid Cash $ 26,060 Stock issued $ 24,303 Total consideration paid 50,363 Fair value of assets acquired Cash and cash equivalents 2,821 Prepaid assets 23 Furniture and equipment, net 55 Intangible assets 24,119 Other assets 457 Total assets 27,475 Fair value of liabilities assumed Accrued expenses and other liabilities 2,463 Total liabilities assumed 2,463 Fair value of net assets acquired 25,012 Goodwill resulting from acquisition $ 25,351 |
LOANS RECEIVABLE, NET (Tables)
LOANS RECEIVABLE, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
LOANS RECEIVABLE, NET [Abstract] | |
Year-end Loans Receivable | Year-end loans receivable were as follows: September 30, 2015 September 30, 2014 (Dollars in Thousands) 1-4 Family Real Estate $ 125,021 $ 116,395 Commercial and Multi-Family Real Estate 310,199 224,302 Agricultural Real Estate 64,316 56,071 Consumer 33,527 29,329 Commercial Operating 29,893 30,846 Agricultural Operating 43,626 42,258 Premium Finance 106,505 - Total Loans Receivable 713,087 499,201 Less: Allowance for Loan Losses (6,255 ) (5,397 ) Net Deferred Loan Origination Fees (577 ) (797 ) Total Loans Receivable, Net $ 706,255 $ 493,007 |
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans | Annual activity in the allowance for loan losses was as follows: Year ended September 30, 2015 2014 2013 (Dollars in Thousands) Beginning balance $ 5,397 $ 3,930 $ 3,971 Provision (recovery) for loan losses 1,465 1,150 - Recoveries 123 367 179 Charge offs (730 ) (50 ) (220 ) Ending balance $ 6,255 $ 5,397 $ 3,930 Allowance for Loan Losses and Recorded Investment in loans at September 30, 2015 and 2014 are as follows: 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2015 Allowance for loan losses: Beginning balance $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Provision (recovery) for loan losses (229 ) (180 ) (100 ) (58 ) (68 ) 3,004 464 (1,368 ) 1,465 Charge offs (45 ) (214 ) - - - (186 ) (285 ) - (730 ) Recoveries - 6 - - 3 - 114 - 123 Ending balance $ 278 $ 1,187 $ 163 $ 20 $ 28 $ 3,537 $ 293 $ 749 $ 6,255 Ending balance: individually evaluated for impairment - 241 - - - 3,252 - - 3,493 Ending balance: collectively evaluated for impairment 278 946 163 20 28 285 293 749 2,762 Total $ 278 $ 1,187 $ 163 $ 20 $ 28 $ 3,537 $ 293 $ 749 $ 6,255 Loans: Ending balance: individually evaluated for impairment 121 1,350 - - 11 5,132 - - 6,614 Ending balance: collectively evaluated for impairment 124,900 308,849 64,316 33,527 29,882 38,494 106,505 - 706,473 Total $ 125,021 $ 310,199 $ 64,316 $ 33,527 $ 29,893 $ 43,626 $ 106,505 $ - $ 713,087 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Unallocated Total (Dollars in Thousands) Year Ended September 30, 2014 Allowance for loan losses: Beginning balance $ 333 $ 1,937 $ 112 $ 74 $ 49 $ 267 $ - $ 1,158 $ 3,930 Provision (recovery) for loan losses 217 (709 ) 151 4 26 502 - 959 1,150 Charge offs - - - - - (50 ) - - (50 ) Recoveries 2 347 - - 18 - - - 367 Ending balance $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Ending balance: individually evaluated for impairment 23 350 - - - 340 - - 713 Ending balance: collectively evaluated for impairment 529 1,225 263 78 93 379 - 2,117 4,684 Total $ 552 $ 1,575 $ 263 $ 78 $ 93 $ 719 $ - $ 2,117 $ 5,397 Loans: Ending balance: individually evaluated for impairment 387 5,655 - - 22 340 - - 6,404 Ending balance: collectively evaluated for impairment 116,008 218,647 56,071 29,329 30,824 41,918 - - 492,797 Total $ 116,395 $ 224,302 $ 56,071 $ 29,329 $ 30,846 $ 42,258 $ - $ - $ 499,201 |
Asset Classification of Loans | The asset classification of loans at September 30, 2015, and 2014, are as follows: September 30, 2015 1-4 Family Real Estate Commercial and Multi-Family Real Estate Agricultural Real Estate Consumer Commercial Operating Agricultural Operating Premium Finance Total (Dollars in Thousands) Pass $ 124,775 $ 307,876 $ 35,106 $ 33,527 $ 29,052 $ 29,336 $ 106,505 $ 666,177 Watch 212 1,419 26,703 - 712 1,079 - 30,125 Special Mention 10 - 877 - - 4,014 - 4,901 Substandard 24 904 1,630 - 129 9,197 - 11,884 Doubtful - - - - - - - - $ 125,021 $ 310,199 $ 64,316 $ 33,527 $ 29,893 $ 43,626 $ 106,505 $ 713,087 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 |
Past Due Loans | Past due loans at September 30, 2015 and 2014 are as follows: September 30, 2015 30-59 Days Past Due 60-89 Days Past Due Greater Than 90 Days Total Past Due Current Non-Accrual Loans Total Loans Receivable (Dollars in Thousands) 1-4 Family Real Estate $ 142 $ - $ - $ 142 $ 124,855 $ 24 $ 125,021 Commercial and Multi-Family Real Estate - - - - 309,295 904 310,199 Agricultural Real Estate - - - - 64,316 - 64,316 Consumer 152 - 13 165 33,362 - 33,527 Commercial Operating - - - - 29,893 - 29,893 Agricultural Operating - - - - 38,494 5,132 43,626 Premium Finance 702 362 1,728 2,792 103,713 - 106,505 Total $ 996 $ 362 $ 1,741 $ 3,099 $ 703,928 $ 6,060 $ 713,087 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 September 30, 2015 and 2014 are as follows: Recorded Balance Unpaid Principal Balance Specific Allowance September 30, 2015 (Dollars in Thousands) Loans without a specific valuation allowance 1-4 Family Real Estate $ 121 $ 121 $ - Commercial and Multi-Family Real Estate 446 446 - Commercial Operating 11 11 - Total $ 578 $ 578 $ - Loans with a specific valuation allowance 1-4 Family Real Estate $ - $ - $ - Commercial and Multi-Family Real Estate 904 904 241 Agricultural Operating 5,132 5,282 3,252 Total $ 6,036 $ 6,186 $ 3,493 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 - Commercial Operating 22 22 - 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 Operating 340 340 340 Total $ 1,865 $ 1,865 $ 713 Cash interest collected on impaired loans was not material during the years ended September 30, 2015 and 2014. The following table provides the average recorded investment in impaired loans for the years ended September 30, 2015 and 2014. Year Ended September 30, 2015 2014 Average Recorded Investment Average Recorded Investment 1-4 Family Real Estate $ 238 $ 574 Commercial and Multi-Family Real Estate 2,114 6,526 Commercial Operating 17 34 Agricultural Operating 3,559 29 Total $ 5,928 $ 7,163 |
LOAN SERVICING (Tables)
LOAN SERVICING (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
LOAN SERVICING [Abstract] | |
Unpaid Principal Balances of Loans Serviced for Others | Loans serviced for others are not reported as assets. The unpaid principal balances of these loans at year-end were as follows: September 30, 2015 2014 2013 (Dollars in Thousands) Mortgage loan portfolios serviced for Fannie Mae $ 5,055 $ 5,948 $ 7,361 Other 17,156 16,576 9,930 $ 22,211 $ 22,524 $ 17,291 |
EARNINGS PER COMMON SHARE (Tabl
EARNINGS PER COMMON SHARE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
EARNINGS PER COMMON SHARE [Abstract] | |
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS | A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2015, 2014 and 2013 is presented below. 2015 2014 2013 (Dollars in Thousands, Except Share and Per Share Data) Earnings Net income $ 18,055 $ 15,713 $ 13,418 Basic EPS Weighted average common shares outstanding 6,730,086 6,117,577 5,595,733 Less weighted average nonvested shares (4,237 ) (4,301 ) (2,032 ) Weighted average common shares outstanding 6,725,849 6,113,276 5,593,701 Earnings Per Common Share Basic $ 2.68 $ 2.57 $ 2.40 Diluted EPS Weighted average common shares outstanding for basic earnings per common share 6,725,849 6,113,276 5,593,701 Add dilutive effect of assumed exercises of stock options, net of tax benefits 68,951 85,133 53,437 Weighted average common and dilutive potential common shares outstanding 6,794,800 6,198,409 5,647,138 Earnings Per Common Share Diluted $ 2.66 $ 2.53 $ 2.38 |
SECURITIES (Tables)
SECURITIES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
SECURITIES [Abstract] | |
Securities Available for Sale | Securities available for sale were as follows: Available For Sale GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2015 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ 16,199 $ 8 $ (2,263 ) $ 13,944 Small business administration securities 54,493 1,563 - 56,056 Non-bank qualified obligations of states and political subdivisions 603,165 7,240 (1,815 ) 608,590 Mortgage-backed securities 580,165 1,283 (4,865 ) 576,583 Total debt securities 1,254,022 10,094 (8,943 ) 1,255,173 Common equities and mutual funds 639 283 (8 ) 914 Total available for sale securities $ 1,254,661 $ 10,377 $ (8,951 ) $ 1,256,087 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2014 COST GAINS (LOSSES) VALUE (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 | Securities held to maturity were as follows: Held to Maturity GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2015 COST GAINS (LOSSES) VALUE (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 19,540 $ 60 $ (187 ) $ 19,413 Non-bank qualified obligations of states and political subdivisions 259,627 2,122 (419 ) 261,330 Mortgage-backed securities 66,577 - (473 ) 66,104 Total held to maturity securities $ 345,744 $ 2,182 $ (1,079 ) $ 346,847 GROSS GROSS AMORTIZED UNREALIZED UNREALIZED FAIR At September 30, 2014 COST GAINS (LOSSES) VALUE (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 Available-for-sale Securities | Included in securities available for sale are trust preferred securities as follows: At September 30, 2015 Issuer (1) Amortized Cost Fair Value Unrealized S&P Credit Rating Moody's (Dollars in Thousands) Key Corp. Capital I $ 4,986 $ 4,189 $ (797 ) BB+ Baa2 Huntington Capital Trust II SE 4,979 4,076 (903 ) BB Baa2 PNC Capital Trust 4,965 4,402 (563 ) BBB- Baa1 Total $ 14,930 $ 12,667 $ (2,263 ) (1) Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. At September 30, 2014 Issuer (1) Amortized Cost Fair Value Unrealized S&P Moody's (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 continuous unrealized loss position at September 30, 2015, and 2014, are as follows: Available For Sale LESS THAN 12 MONTHS OVER 12 MONTHS TOTAL At September 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Trust preferred and corporate securities $ - $ - $ 12,667 $ (2,263 ) $ 12,667 $ (2,263 ) Non-bank qualified obligations of states and political subdivisions 97,006 (860 ) 42,583 (955 ) 139,589 (1,815 ) Mortgage-backed securities 448,988 (4,301 ) 48,079 (564 ) 497,067 (4,865 ) Total debt securities 545,994 (5,161 ) 103,329 (3,782 ) 649,323 (8,943 ) Common equities and mutual funds - - 121 (8 ) 121 (8 ) Total available for sale securities $ 545,994 $ (5,161 ) $ 103,450 $ (3,790 ) $ 649,444 $ (8,951 ) 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 September 30, 2015 Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) Fair Value Unrealized (Losses) (Dollars in Thousands) Debt securities Obligations of states and political subdivisions $ 5,528 $ (34 ) $ 7,964 $ (153 ) $ 13,492 $ (187 ) Non-bank qualified obligations of states and political subdivisions 78,663 (365 ) 4,136 (54 ) 82,799 (419 ) Mortgage-backed securities 5,509 (43 ) 60,595 (430 ) 66,104 (473 ) Total held to maturity securities $ 89,700 $ (442 ) $ 72,695 $ (637 ) $ 162,395 $ (1,079 ) 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 amortized cost and fair value of debt securities by contractual maturity are shown below. Certain securities have call features which allow the issuer to call the security prior to maturity. Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary. The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply. Available For Sale AMORTIZED COST FAIR VALUE At September 30, 2015 (Dollars in Thousands) Due in one year or less $ - $ - Due after one year through five years 1,174 1,207 Due after five years through ten years 370,087 376,394 Due after ten years 302,596 300,989 673,857 678,590 Mortgage-backed securities 580,165 576,583 Common equities and mutual funds 639 914 Total available for sale securities $ 1,254,661 $ 1,256,087 AMORTIZED COST FAIR VALUE At 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 September 30, 2015 (Dollars in Thousands) Due in one year or less $ 95 $ 96 Due after one year through five years 8,411 8,430 Due after five years through ten years 140,145 140,505 Due after ten years 130,516 131,712 279,167 280,743 Mortgage-backed securities 66,577 66,104 Total held to maturity securities $ 345,744 $ 346,847 AMORTIZED COST FAIR VALUE At 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 |
Summary of Activities Related to Sale of Securities Available for Sale | Activities related to the sale of securities available for sale are summarized below. 2015 2014 2013 September 30, (Dollars in Thousands) Proceeds from sales $ 566,371 $ 166,804 $ 209,172 Gross gains on sales 2,753 2,292 2,947 Gross losses on sales 4,387 2,185 401 |
PREMISES, FURNITURE, AND EQUI39
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
PREMISES, FURNITURE, AND EQUIPMENT, NET [Abstract] | |
Summary of Year-End Premises and Equipment | Year-end premises and equipment were as follows: September 30, 2015 2014 (Dollars in Thousands) Land $ 1,578 $ 1,673 Buildings 10,315 12,275 Furniture, fixtures, and equipment 35,571 30,947 Capitalized leases 2,259 - 49,723 44,895 Less: accumulated depreciation and amortization (32,330 ) (28,433 ) Net book value $ 17,393 $ 16,462 |
TIME CERTIFICATES OF DEPOSITS (
TIME CERTIFICATES OF DEPOSITS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
TIME CERTIFICATES OF DEPOSITS [Abstract] | |
Scheduled Maturities of Time Certificates of Deposits | At September 30, 2015, the scheduled maturities of time certificates of deposits were as follows for the years ending: September 30, (Dollars in Thousands) 2016 $ 66,964 2017 13,638 2018 5,594 2019 2,787 2020 2,188 Thereafter - Total Certificates $ 91,171 |
ADVANCES FROM THE FEDERAL HOM41
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS [Abstract] | |
Scheduled Maturities of FHLB Advances | At September 30, 2015, the Company’s advances from the FHLB had fixed rates ranging from 6.97% to 7.01% with a weighted-average rate of 6.98%. The scheduled maturities of FHLB advances were as follows for the years ending: September 30, (Dollars in Thousands) 2016 $ - 2017 - 2018 - 2019 5,000 2020 2,000 Thereafter - Total FHLB Advances $ 7,000 |
SECURITIES SOLD UNDER AGREEME42
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Abstract] | |
Analysis of Securities Sold under Agreements to Repurchase | An analysis of securities sold under agreements to repurchase follows: September 30, 2015 2014 (Dollars in Thousands) Highest month-end balance $ 17,400 $ 33,999 Average balance 10,883 10,137 Weighted average interest rate for the year 0.52 % 0.52 % Weighted average interest rate at year end 0.58 % 0.52 % |
EMPLOYEE STOCK OWNERSHIP AND 43
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |
Year-End ESOP Shares | Year-end ESOP shares are as follows: September 30, 2015 2014 2013 (Dollars in Thousands) Allocated shares 256,283 239,879 223,868 Unearned shares - - - Total ESOP shares 256,283 239,879 223,868 Fair value of unearned shares $ - $ - $ - |
SHARE BASED COMPENSATION PLANS
SHARE BASED COMPENSATION PLANS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
SHARE BASED COMPENSATION PLANS [Abstract] | |
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded | The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2015, 2014 and 2013. Year Ended September 30, 2015 2014 2013 (Dollars in Thousands) Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively $ 334 $ 120 $ 103 |
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 during the years ended September 30, 2015 and 2014. 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 (46,678 ) 22.98 - 925 Forfeited or expired - - - - Options outstanding, September 30, 2015 189,088 $ 25.74 3.16 $ 3,027 Options exercisable end of year 189,088 $ 25.74 3.16 $ 3,027 Number of 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, 2013 318,648 $ 24.44 4.18 $ 4,376 Granted - - - - Exercised (82,882 ) 22.31 - 1,389 Forfeited or expired - - - - Options outstanding, September 30, 2014 235,766 $ 25.20 3.78 $ 2,507 Options exercisable end of year 235,766 $ 25.20 3.78 $ 2,507 |
Activity of Nonvested (Restricted) Shares | 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 during the years ended September 30, 2015 and 2014. 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 51,217 41.10 Vested (11,215 ) 37.81 Forfeited or expired - - Nonvested shares outstanding, September 30, 2015 44,002 $ 40.80 Number of Shares Weighted Average Fair Value At Grant (Dollars in Thousands, Except Share and Per Share Data) Nonvested shares outstanding, September 30, 2013 4,000 $ 25.67 Granted 4,267 37.82 Vested (4,267 ) 35.07 Forfeited or expired - - Nonvested shares outstanding, September 30, 2014 4,000 $ 28.61 |
INCOME TAXES (Tables)
INCOME TAXES (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
INCOME TAXES [Abstract] | |
Provision for Income Taxes | The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes consists of: Years ended September 30, 2015 2014 2013 (Dollars in Thousands) Federal: Current $ 4,217 $ 3,787 $ 2,847 Deferred (3,896 ) (1,765 ) (536 ) 321 2,022 2,311 State: Current 1,048 874 1,252 Deferred (1 ) 10 141 1,047 884 1,393 Income tax expense $ 1,368 $ 2,906 $ 3,704 |
Reconciliation of Total Income Tax Expense | Total income tax expense differs from the statutory federal income tax rate as follows: Years ended September 30, 2015 2014 2013 (Dollars in Thousands) Income tax expense at federal tax rate $ 6,798 $ 6,517 $ 5,993 Increase (decrease) resulting from: State income taxes net of federal benefit 692 575 1,092 Nontaxable buildup in cash surrender value (711 ) (399 ) (349 ) Incentive stock option expense (37 ) (187 ) (97 ) Tax exempt income (5,230 ) (3,594 ) (2,815 ) Nondeductible expenses 188 120 41 Other, net (332 ) (126 ) (161 ) Total income tax expense (benefit) $ 1,368 $ 2,906 $ 3,704 |
Components of Net Deferred Tax Asset (Liability) | The components of the net deferred tax asset (liability) at September 30, 2015 and 2014 are: September 30, 2015 2014 (Dollars in Thousands) Deferred tax assets: Bad debts $ 2,286 $ 1,955 Deferred compensation 1,040 708 Stock based compensation 235 271 Operational reserve 453 464 AMT Credit 4,490 2,239 Intangibles 573 Net unrealized losses on securities available for sale - 2,969 Indirect tax benefits of unrecognized tax positions 384 376 Other assets 1,293 759 10,754 9,741 Deferred tax liabilities: FHLB stock dividend (414 ) (410 ) Premises and equipment (1,222 ) (1,060 ) Patents (967 ) (937 ) Prepaid expenses (633 ) (743 ) Net unrealized gains on securities available for sale (521 ) - Deferred loan fees - - (3,757 ) (3,150 ) Net deferred tax assets (liabilities) $ 6,997 $ 6,591 |
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits | A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2015, and 2014 follows: September 30, 2015 2014 (Dollars in Thousands) Balance at beginning of year $ 983 $ 931 Additions for tax positions related to the current year 49 118 Additions for tax positions related to the prior years 4 - Reductions for tax positions due to settlement with taxing authorities (62 ) (16 ) Reductions for tax positions related to prior years - (50 ) Balance at end of year $ 974 $ 983 |
CAPITAL REQUIREMENTS AND REST46
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract] | |
Bank's Actual and Required Capital Amount and Ratios | The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies. Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity. Company (Actual) Bank (Actual) Minimum Requirement For Capital Adequacy Purposes Minimum Requirement To Be Well Capitalized Under Prompt Corrective Action Provisions Amount Ratio Amount Ratio Amount Ratio Amount Ratio (Dollars in Thousands) September 30, 2015 Tier 1 (core) capital (to adjusted total assets) $ 224,426 9.36 % $ 213,220 8.89 % $ 8,977 4.00 % $ 11,221 5.00 % Common equity Tier 1 (to risk-weighted assets) 216,931 19.85 213,220 19.52 9,762 4.50 14,101 6.50 Tier 1 (core) capital (to risk-weighted assets) 224,426 20.54 213,220 19.52 13,466 6.00 17,954 8.00 Total qualifying capital (to risk-weighted assets) 230,820 21.12 219,614 20.11 18,466 8.00 23,082 10.00 September 30, 2014 Tangible capital (to tangible assets) $ 176,388 8.60 % $ 176,388 8.60 % $ 30,771 1.50 % $ n/ a n/a % Tier 1 (core) capital (to adjusted total assets) 176,388 8.60 176,388 8.60 82,057 4.00 102,571 5.00 Tier 1 (core) capital (to risk-weighted assets) 176,388 20.95 176,388 20.95 33,672 4.00 50,508 6.00 Total risk based capital (to risk-weighted assets) 181,786 21.59 181,786 21.59 67,344 8.00 84,180 10.00 |
Reconciliation of Required Capital Amount and Ratios | The following table provides a reconciliation of the amounts included in the table above for the Company. Standardized Approach (1) September 30, 2015 (Dollars in Thousands) Total equity $ 271,335 Adjustments: LESS: Goodwill, net of associated deferred tax liabilities 36,642 LESS: Certain other intangible assets 13,431 LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 1,876 LESS: Net unrealized gains (losses) on available-for-sale securities 2,455 Common Equity Tier 1 (1) 216,931 Long-term debt and other instruments qualifying as Tier 1 10,310 LESS: Additional tier 1 capital deductions 2,815 Total Tier 1 capital 224,426 Allowance for loan losses 6,394 Total qualifying capital 230,820 (1) Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. |
LEASE COMMITMENTS (Tables)
LEASE COMMITMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
LEASE COMMITMENTS [Abstract] | |
Total Minimum Rental Commitment for Operating and Capital Leases | The following table shows the total minimum rental commitment for our operating and capital leases as of September 30, 2015. Year Ended September 30, (Dollars in Thousands) Operating Leases Capital Leases 2016 $ 1,708 $ 252 2017 1,752 201 2018 1,464 179 2019 1,394 179 2020 1,277 182 Thereafter 12,476 2,604 Total Leases Commitments $ 20,071 $ 3,597 Amounts representing interest $ 1,454 Present value of net minimum lease payments 2,143 |
SEGMENT REPORTING (Tables)
SEGMENT REPORTING (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
SEGMENT REPORTING [Abstract] | |
Segment Information of Entity | 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. Retail Banking Meta Payment Systems ® All Others Total Year Ended September 30, 2015 Interest income $ 33,980 $ 21,590 $ 6,037 $ 61,607 Interest expense 1,675 169 543 2,387 Net interest income (expense) 32,305 21,421 5,494 59,220 Provision (recovery) for loan losses 1,000 - 465 1,465 Non-interest income 2,243 54,417 1,514 58,174 Non-interest expense 23,780 66,415 6,311 96,506 Income (loss) before income tax expense (benefit) 9,768 9,423 232 19,423 Income tax expense (benefit) 688 663 17 1,368 Net income (loss) $ 9,080 $ 8,760 $ 215 $ 18,055 Inter-segment revenue (expense) $ (16,547 ) $ 16,547 $ - $ - Total assets 840,177 1,579,856 109,672 2,529,705 Total deposits 242,580 1,424,304 (9,350 ) 1,657,534 Retail Banking Meta Payment Systems ® All Others Total Year Ended September 30, 2014 Interest income $ 31,635 $ 17,025 $ - $ 48,660 Interest expense 1,926 124 348 2,398 Net interest income (expense) 29,709 16,901 (348 ) 46,262 Provision (recovery) for loan losses 1,150 - - 1,150 Non-interest income 3,214 48,524 - 51,738 Non-interest expense 21,227 56,234 770 78,231 Income (loss) before income tax expense (benefit) 10,546 9,191 (1,118 ) 18,619 Income tax expense (benefit) 1,846 1,482 (422 ) 2,906 Net income (loss) $ 8,700 $ 7,709 $ (696 ) $ 15,713 Inter-segment revenue (expense) $ 12,793 $ (12,793 ) $ - $ - Total assets 805,494 1,245,110 3,427 2,054,031 Total deposits 273,399 1,099,548 (6,406 ) 1,366,541 Retail Banking Meta Payment Systems ® All Others Total Year Ended September 30, 2014 Interest income $ 24,169 $ 14,807 $ - $ 38,976 Interest expense 2,361 124 469 2,954 Net interest income (expense) 21,808 14,683 (469 ) 36,022 Provision (recovery) for loan losses - - - - Non-interest income 5,226 50,290 (13 ) 55,503 Non-interest expense 19,479 53,983 941 74,403 Income (loss) before income tax expense (benefit) 7,555 10,990 (1,423 ) 17,122 Income tax expense (benefit) 1,615 2,611 (522 ) 3,704 Net income (loss) $ 5,940 $ 8,379 $ (901 ) $ 13,418 Inter-segment revenue (expense) $ 12,106 $ (12,106 ) $ - $ - Total assets 487,754 1,201,531 2,704 1,691,989 Total deposits 260,525 1,063,770 (9,012 ) 1,315,283 |
PARENT COMPANY FINANCIAL STAT49
PARENT COMPANY FINANCIAL STATEMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
PARENT COMPANY FINANCIAL STATEMENTS [Abstract] | |
Condensed Statements of Financial Condition | CONDENSED STATEMENTS OF FINANCIAL CONDITION September 30, 2015 2014 (Dollars in Thousands) ASSETS Cash and cash equivalents $ 14,280 $ 9,439 Investment in subsidiaries 267,623 175,568 Other assets 408 393 Total assets $ 282,311 $ 185,400 LIABILITIES AND STOCKHOLDERS' EQUITY LIABILITIES Subordinated debentures $ 10,310 $ 10,310 Other liabilities 666 288 Total liabilities $ 10,976 $ 10,598 STOCKHOLDERS' EQUITY Common stock $ 82 $ 62 Additional paid-in capital 170,749 95,079 Retained earnings 98,359 83,797 Accumulated other comprehensive income (loss) 2,455 (3,409 ) Treasury stock, at cost (310 ) (727 ) Total stockholders' equity $ 271,335 $ 174,802 Total liabilities and stockholders' equity $ 282,311 $ 185,400 |
Condensed Statements of Operations | CONDENSED STATEMENTS OF OPERATIONS Years ended September 30, 2015 2014 2013 (Dollars in Thousands) Total other income $ - $ - $ - Interest expense 418 348 469 Other expense 269 770 941 Total expense 687 1,118 1,410 Gain (loss) before income taxes and equity in undistributed net income of subsidiaries (687 ) (1,118 ) (1,410 ) Income tax benefit (324 ) (422 ) (509 ) Gain (loss) before equity in undistributed net income of subsidiaries (363 ) (696 ) (901 ) Equity in undistributed net income of subsidiaries 18,418 16,409 14,319 Net income $ 18,055 $ 15,713 $ 13,418 |
Condensed Statements of Cash Flows | CONDENSED STATEMENTS OF CASH FLOWS For the Years Ended September 30, 2015 2014 2013 (Dollars in Thousands) CASH FLOWS FROM OPERATING ACTIVITIES Net income $ 18,055 $ 15,713 $ 13,418 Adjustments to reconcile net income to net cash provided by (used in) operating activites Depreciation, amortization and accretion, net - (310 ) - Equity in undistributed net income of subsidiaries (18,418 ) (16,409 ) (14,319 ) Change in other assets (15 ) 246 54 Change in other liabilities 378 (332 ) (339 ) Net cash provided by (used in) operating activities (0 ) (1,092 ) (1,186 ) CASH FLOWS FROM INVESTING ACTIVITES Capital contributions to subsidiaries (67,600 ) - (6,000 ) Net cash provided by (used in) investing activites (67,600 ) - (6,000 ) CASH FLOWS FROM FINANCING ACTIVITIES Cash dividends paid (3,493 ) (3,184 ) (2,926 ) Stock compensation 253 4 165 Proceeds from issuance of common stock 75,471 (51 ) 12,718 Proceeds from exercise of stock options 210 2,376 2,548 Other, net - - (38 ) Net cash provided by (used in) financing activities 72,441 (855 ) 12,467 Net change in cash and cash equivalents $ 4,841 $ (1,947 ) $ 5,281 CASH AND CASH EQUIVALENTS Beginning of year $ 9,439 $ 11,386 $ 6,105 End of year $ 14,280 $ 9,439 $ 11,386 |
SELECTED QUARTERLY FINANCIAL 50
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |
Selected Quarterly Financial Data | QUARTER ENDED December 31 March 31 June 30 September 30 (Dollars in Thousands) Fiscal Year 2015 Interest income $ 14,232 $ 15,758 $ 15,254 $ 16,363 Interest expense 661 473 593 660 Net interest income 13,571 15,285 14,661 15,703 Provision (recovery) for loan losses 48 593 700 124 Net Income (loss) 3,595 5,181 4,640 4,639 Earnings (loss) per common and common equivalent share Basic $ 0.58 $ 0.79 $ 0.67 $ 0.64 Diluted 0.58 0.78 0.66 0.64 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2014 Interest income $ 11,162 $ 12,063 $ 12,566 $ 12,869 Interest expense 649 544 638 567 Net interest income 10,513 11,519 11,928 12,302 Provision (recovery) for loan losses - 300 300 550 Net Income (loss) 4,002 4,144 4,204 3,363 Earnings (loss) per common and common equivalent share Basic $ 0.66 $ 0.68 $ 0.69 $ 0.54 Diluted 0.65 0.67 0.68 0.53 Dividend declared per share 0.13 0.13 0.13 0.13 Fiscal Year 2013 Interest income $ 9,630 $ 9,718 $ 9,825 $ 9,803 Interest expense 833 813 666 642 Net interest income 8,797 8,905 9,159 9,161 Provision (recovery) for loan losses - (300 ) - 300 Net Income (loss) 3,125 3,147 3,672 3,474 Earnings (loss) per common and common equivalent share Basic $ 0.57 $ 0.57 $ 0.67 $ 0.59 Diluted 0.57 0.57 0.66 0.58 Dividend declared per share 0.13 0.13 0.13 0.13 |
FAIR VALUES OF FINANCIAL INST51
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
FAIR VALUES OF FINANCIAL INSTRUMENTS [Abstract] | |
Summary of Fair Values of Securities Available for Sale and Held to Maturity | The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2015 and 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 September 30, 2015 Available For Sale Held to Maturity (Dollars in Thousands) Total Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Debt securities Trust preferred and corporate securities $ 13,944 $ - $ 13,944 $ - $ - $ - $ - $ - Small business administration securities 56,056 - 56,056 - - - - - Obligations of states and political subdivisions - - - - 19,413 - 19,413 - Non-bank qualified obligations of states and political subdivisions 608,590 - 608,590 - 261,330 - 261,330 - Mortgage-backed securities 576,583 - 576,583 - 66,104 - 66,104 - Total debt securities 1,255,173 - 1,255,173 - 346,847 - 346,847 - Common equities and mutual funds 914 914 - - - - - - Total securities $ 1,256,087 $ 914 $ 1,255,173 $ - $ 346,847 $ - $ 346,847 $ - Fair Value At 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 September 30, 2015 and 2014. Fair Value at September 30, 2015 (Dollars in Thousands) Total Level 1 Level 2 Level 3 Impaired Loans, net Commercial and multi-family real estate loans $ 663 $ - $ - $ 663 Agricultural operating loans 1,880 - - 1,880 Total $ 2,543 $ - $ - $ 2,543 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 September 30, 2015 Fair Value at September 30, 2014 Valuation Technique Unobservable Input Impaired Loans, net $ 2,543 $ 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 September 30, 2015 and 2014. September 30, 2015 Carrying Amount Estimated Fair Value Level 1 Level 2 Level 3 (Dollars in Thousands) Financial assets Cash and cash equivalents $ 27,658 $ 27,658 $ 27,658 $ - $ - Securities available for sale 1,256,087 1,256,087 914 1,255,173 - Securities held to maturity 345,743 346,847 - 346,847 - Total securities 1,601,830 1,602,934 914 1,602,020 - Loans receivable: One to four family residential mortgage loans 125,021 121,385 - - 121,385 Commercial and multi-family real estate loans 310,199 314,372 - - 314,372 Agricultural real estate loans 64,316 66,682 - - 66,682 Consumer loans 33,527 33,504 - - 33,504 Commercial operating loans 29,893 23,245 - - 23,245 Agricultural operating loans 43,626 40,003 - - 40,003 Premium finance loans 106,505 108,583 - - 108,583 Total loans receivable 713,087 707,774 - - 707,774 Federal Home Loan Bank stock 24,410 24,410 - 24,410 - Accrued interest receivable 13,352 13,352 13,352 - - Financial liabilities Noninterest bearing demand deposits 1,449,101 1,369,672 1,369,672 - - Interest bearing demand deposits, savings, and money markets 117,262 115,204 115,204 - - Certificates of deposit 91,171 91,304 - 91,304 - Total deposits 1,657,534 1,576,180 1,484,876 91,304 - Advances from Federal Home Loan Bank 7,000 8,630 - 8,630 - Federal funds purchased 540,000 540,000 - 540,000 - Securities sold under agreements to repurchase 4,007 4,007 - 4,007 - Subordinated debentures 10,310 10,416 - 10,416 - Accrued interest payable 272 272 272 - - 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 10,414 - 10,414 - Subordinated debentures 10,310 10,415 - 10,415 - Accrued interest payable 318 318 318 - - |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 12 Months Ended |
Sep. 30, 2015 | |
GOODWILL AND INTANGIBLE ASSETS [Abstract] | |
Summary of Amortizable Intangible Assets | As part of the each business combination, the Company also recognized the following amortizable intangible assets: AFS/IBEX: Intangible Amount Book Amortization Period (Years) Method Trademark $ 540 15 Straight Line Non-Compete $ 260 3 Straight Line Customer Relationships $ 7,240 30 Accelerated Other $ 173 Varied Straight Line Refund Advantage: Intangible Amount Book Amortization Period (Years) Method Trademark $ 4,950 15 Accelerated Non-Compete $ 40 3 Straight Line Customer Relationships $ 18,800 12 to 20 Accelerated Other $ 329 Varied Straight Line |
Changes in Carrying Amount of Goodwill and Intangible Assets | The changes in the carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2015 and 2014 are as follows: September 30, 2015 2014 (Dollars in Thousands) Goodwill Balance as of September 30, 2014 $ - $ - Acquisitions during the period 36,928 - Write-offs during the period - - Balance as of September 30, 2015 $ 36,928 $ - The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2015. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded quantitative analysis was not required and no impairment existed. Trademark Non-Compete Customer Relationships All Others Total Intangibles Balance as of September 30, 2014 $ - $ - $ - $ 2,588 $ 2,588 Acquisitions during the period 5,490 300 26,040 855 32,685 Amortization during the period (51 ) (73 ) (1,229 ) (282 ) (1,635 ) Write-offs during the period - - - (61 ) (61 ) Balance as of September 30, 2015 $ 5,439 $ 227 $ 24,811 $ 3,100 $ 33,577 Trademark Non-Compete Customer Relationships All Others Total Intangibles Balance as of September 30, 2013 $ - $ - $ - $ 2,339 $ 2,339 Acquisitions during the period - - - 331 331 Amortization during the period - - - (78 ) (78 ) Write-offs during the period - - - (4 ) (4 ) Balance as of September 30, 2014 $ - $ - $ - $ 2,588 $ 2,588 |
Anticipated Future Amortization of Intangibles | The anticipated future amortization of intangibles is as follows: September 30, (Dollars in Thousands) 2016 $ 4,819 2017 4,116 2018 3,517 2019 3,001 2020 2,598 Thereafter 15,526 Total anticipated intangible amortization $ 33,577 |
SUMMARY OF SIGNIFICANT ACCOUN53
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | |
PRINCIPLES OF CONSOLIDATION [Abstract] | ||
Percentage of interest in subsidiary | 100.00% | |
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract] | ||
Number of reporting segments | Segment | 2 | |
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract] | ||
Terms of FHLB advances | 90 days | |
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank) | $ 4.1 | $ 8.3 |
Interest bearing deposits held at FRB | $ 7.2 | |
LOANS RECEIVABLE [Abstract] | ||
Period when loan becomes delinquent | 90 days | |
Period when loan becomes delinquent for premium finance | 210 days | |
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS [Abstract] | ||
Aggregate unpaid balance of loans serviced for others | $ 22.2 | $ 22.6 |
ALLOWANCE FOR LOAN LOSSES [Abstract] | ||
Look back period | 5 years | |
Buildings [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, furniture and equipment, estimated useful lives | 10 years | |
Buildings [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, furniture and equipment, estimated useful lives | 40 years | |
Leasehold Improvements [Member] | Minimum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, furniture and equipment, estimated useful lives | 2 years | |
Leasehold Improvements [Member] | Maximum [Member] | ||
Property, Plant and Equipment [Line Items] | ||
Premises, furniture and equipment, estimated useful lives | 15 years |
ACQUISITIONS (Details)
ACQUISITIONS (Details) $ / shares in Units, $ in Thousands | Sep. 08, 2015USD ($) | Dec. 02, 2014USD ($)AgencyAgencyOffice | Sep. 30, 2015USD ($)Acquisition$ / sharesshares | Sep. 30, 2014USD ($)$ / sharesshares | Sep. 30, 2013USD ($) |
Business Acquisition [Line Items] | |||||
Number of acquisitions | Acquisition | 2 | ||||
Fair value of liabilities assumed [Abstract] | |||||
Goodwill resulting from acquisition | $ 36,928 | $ 0 | $ 0 | ||
AFS/IBEX Financial Services Inc [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of independent insurance agencies | Agency | 1,300 | ||||
Number of agency offices | AgencyOffice | 2 | ||||
Allowance for credit losses | $ 0 | ||||
Revenue | 7,600 | ||||
Net income | 800 | ||||
Transaction costs | $ 600 | ||||
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] | Customer Relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 30 years | ||||
AFS/IBEX Financial Services Inc [Member] | Dallas [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of agency offices | AgencyOffice | 1 | ||||
AFS/IBEX Financial Services Inc [Member] | Southern California [Member] | |||||
Business Acquisition [Line Items] | |||||
Number of agency offices | AgencyOffice | 1 | ||||
Refund Advantage [Member] | |||||
Business Acquisition [Line Items] | |||||
Transaction costs | $ 900 | ||||
Fair value of consideration paid [Abstract] | |||||
Cash | $ 26,060 | ||||
Stock issued | 24,303 | ||||
Total consideration paid | 50,363 | ||||
Fair value of assets acquired [Abstract] | |||||
Cash and cash equivalents | 2,821 | ||||
Prepaid assets | 23 | ||||
Furniture and equipment, net | 55 | ||||
Intangible assets | 24,119 | ||||
Other assets | 457 | ||||
Total assets | 27,475 | ||||
Fair value of liabilities assumed [Abstract] | |||||
Accrued expenses and other liabilities | 2,463 | ||||
Total liabilities assumed | 2,463 | ||||
Fair value of net assets acquired | 25,012 | ||||
Goodwill resulting from acquisition | $ 25,351 | ||||
Business Acquisition, Pro Forma Information [Abstract] | |||||
Total revenue | 142,876 | 127,150 | |||
Net income | $ 19,724 | $ 19,087 | |||
Basic earnings per common share (in dollars per share) | $ / shares | $ 2.51 | $ 2.64 | |||
Diluted earnings per common share (in dollars per share) | $ / shares | $ 2.49 | $ 2.61 | |||
Basic weighted-average common shares, issued and outstanding (in shares) | shares | 7,850,582 | 7,229,536 | |||
Diluted weighted-average common shares, issued and outstanding (in shares) | shares | 7,915,811 | 7,314,669 | |||
Refund Advantage [Member] | Customer Relationships [Member] | Minimum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 12 years | ||||
Refund Advantage [Member] | Customer Relationships [Member] | Maximum [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 20 years | ||||
Refund Advantage [Member] | Trademark [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortization period | 15 years |
LOANS RECEIVABLE, NET (Details)
LOANS RECEIVABLE, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | $ 713,087 | $ 499,201 |
Less [Abstract] | ||
Allowance for Loan Losses | (6,255) | (5,397) |
Net Deferred Loan Origination Fees | (577) | (797) |
Total Loans Receivable, Net | 706,255 | 493,007 |
Total purchased loans secured by properties | $ 8,100 | |
Percentage of loans secured by properties in North Dakota and Oregon | 1.00% | |
Maximum percentage of loans secured by properties in Minnesota, North Carolina, South Dakota, and Connecticut | 1.00% | |
Percentage of loans secured by properties in seven other states | 1.00% | |
Commercial real estate loans secured by hotel properties | $ 51,100 | 40,700 |
Commercial real estate loans secured by multi-family properties | 99,600 | 62,300 |
Non-accruing loans | 6,060 | 933 |
Accruing loans delinquent 90 days or more | 1,700 | 100 |
Gross interest income | 900 | |
1-4 Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 125,021 | 116,395 |
Less [Abstract] | ||
Non-accruing loans | 24 | 281 |
Commercial and Multi-Family Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 310,199 | 224,302 |
Less [Abstract] | ||
Non-accruing loans | 904 | 312 |
Agricultural Real Estate [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 64,316 | 56,071 |
Less [Abstract] | ||
Non-accruing loans | 0 | 0 |
Consumer [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 33,527 | 29,329 |
Less [Abstract] | ||
Non-accruing loans | 0 | 0 |
Commercial Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 29,893 | 30,846 |
Less [Abstract] | ||
Non-accruing loans | 0 | 0 |
Agricultural Operating [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 43,626 | 42,258 |
Less [Abstract] | ||
Non-accruing loans | 5,132 | 340 |
Premium Finance [Member] | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total loans receivable | 106,505 | $ 0 |
Less [Abstract] | ||
Non-accruing loans | $ 0 |
LOANS RECEIVABLE, NET, Allowanc
LOANS RECEIVABLE, NET, Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | $ 5,397 | $ 3,930 | $ 3,971 |
Provision (recovery) for loan losses | 1,465 | 1,150 | 0 |
Charge offs | (730) | (50) | (220) |
Recoveries | 123 | 367 | 179 |
Ending balance | 6,255 | 5,397 | 3,930 |
Ending balance: individually evaluated for impairment | 3,493 | 713 | |
Ending balance: collectively evaluated for impairment | 2,762 | 4,684 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 6,614 | 6,404 | |
Ending balance: collectively evaluated for impairment | 706,473 | 492,797 | |
Total loans receivable | 713,087 | 499,201 | |
1-4 Family Real Estate [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 552 | 333 | |
Provision (recovery) for loan losses | (229) | 217 | |
Charge offs | (45) | 0 | |
Recoveries | 0 | 2 | |
Ending balance | 278 | 552 | 333 |
Ending balance: individually evaluated for impairment | 0 | 23 | |
Ending balance: collectively evaluated for impairment | 278 | 529 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 121 | 387 | |
Ending balance: collectively evaluated for impairment | 124,900 | 116,008 | |
Total loans receivable | 125,021 | 116,395 | |
Commercial and Multi-Family Real Estate [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 1,575 | 1,937 | |
Provision (recovery) for loan losses | (180) | (709) | |
Charge offs | (214) | 0 | |
Recoveries | 6 | 347 | |
Ending balance | 1,187 | 1,575 | 1,937 |
Ending balance: individually evaluated for impairment | 241 | 350 | |
Ending balance: collectively evaluated for impairment | 946 | 1,225 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 1,350 | 5,655 | |
Ending balance: collectively evaluated for impairment | 308,849 | 218,647 | |
Total loans receivable | 310,199 | 224,302 | |
Agricultural Real Estate [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 263 | 112 | |
Provision (recovery) for loan losses | (100) | 151 | |
Charge offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 163 | 263 | 112 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 163 | 263 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 64,316 | 56,071 | |
Total loans receivable | 64,316 | 56,071 | |
Consumer [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 78 | 74 | |
Provision (recovery) for loan losses | (58) | 4 | |
Charge offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 20 | 78 | 74 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 20 | 78 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 33,527 | 29,329 | |
Total loans receivable | 33,527 | 29,329 | |
Commercial Operating [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 93 | 49 | |
Provision (recovery) for loan losses | (68) | 26 | |
Charge offs | 0 | 0 | |
Recoveries | 3 | 18 | |
Ending balance | 28 | 93 | 49 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 28 | 93 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 11 | 22 | |
Ending balance: collectively evaluated for impairment | 29,882 | 30,824 | |
Total loans receivable | 29,893 | 30,846 | |
Agricultural Operating [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 719 | 267 | |
Provision (recovery) for loan losses | 3,004 | 502 | |
Charge offs | (186) | (50) | |
Recoveries | 0 | 0 | |
Ending balance | 3,537 | 719 | 267 |
Ending balance: individually evaluated for impairment | 3,252 | 340 | |
Ending balance: collectively evaluated for impairment | 285 | 379 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 5,132 | 340 | |
Ending balance: collectively evaluated for impairment | 38,494 | 41,918 | |
Total loans receivable | 43,626 | 42,258 | |
Premium Finance [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 0 | 0 | |
Provision (recovery) for loan losses | 464 | 0 | |
Charge offs | (285) | 0 | |
Recoveries | 114 | 0 | |
Ending balance | 293 | 0 | 0 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 293 | 0 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 106,505 | 0 | |
Total loans receivable | 106,505 | 0 | |
Unallocated [Member] | |||
Allowance for Credit Losses [Roll Forward] | |||
Beginning balance | 2,117 | 1,158 | |
Provision (recovery) for loan losses | (1,368) | 959 | |
Charge offs | 0 | 0 | |
Recoveries | 0 | 0 | |
Ending balance | 749 | 2,117 | $ 1,158 |
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 749 | 2,117 | |
Loans [Abstract] | |||
Ending balance: individually evaluated for impairment | 0 | 0 | |
Ending balance: collectively evaluated for impairment | 0 | 0 | |
Total loans receivable | $ 0 | $ 0 |
LOANS RECEIVABLE, NET, Asset Cl
LOANS RECEIVABLE, NET, Asset Classification of Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 713,087 | $ 499,201 |
Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 666,177 | 482,437 |
Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 30,125 | 2,000 |
Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,901 | 1,900 |
Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 11,884 | 12,864 |
Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 125,021 | 116,395 |
1-4 Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 124,775 | 115,700 |
1-4 Family Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 212 | 369 |
1-4 Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 10 | 81 |
1-4 Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 24 | 245 |
1-4 Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 310,199 | 224,302 |
Commercial and Multi-Family Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 307,876 | 222,074 |
Commercial and Multi-Family Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,419 | 852 |
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 96 |
Commercial and Multi-Family Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 904 | 1,280 |
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Agricultural Real Estate [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 64,316 | 56,071 |
Agricultural Real Estate [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 35,106 | 52,364 |
Agricultural Real Estate [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 26,703 | 273 |
Agricultural Real Estate [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 877 | 1,660 |
Agricultural Real Estate [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,630 | 1,774 |
Agricultural Real Estate [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 33,527 | 29,329 |
Consumer [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 33,527 | 29,329 |
Consumer [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Consumer [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 29,893 | 30,846 |
Commercial Operating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 29,052 | 30,709 |
Commercial Operating [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 712 | 137 |
Commercial Operating [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Commercial Operating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 129 | 0 |
Commercial Operating [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Agricultural Operating [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 43,626 | 42,258 |
Agricultural Operating [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 29,336 | 32,261 |
Agricultural Operating [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 1,079 | 369 |
Agricultural Operating [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 4,014 | 63 |
Agricultural Operating [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 9,197 | 9,565 |
Agricultural Operating [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 106,505 | 0 |
Premium Finance [Member] | Pass [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 106,505 | 0 |
Premium Finance [Member] | Watch [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | Special Mention [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | Substandard [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | 0 | 0 |
Premium Finance [Member] | Doubtful [Member] | ||
Financing Receivable, Recorded Investment [Line Items] | ||
Loans receivable | $ 0 | $ 0 |
LOANS RECEIVABLE, NET, Past Due
LOANS RECEIVABLE, NET, Past Due Loans (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 3,099 | $ 216 |
Current | 703,928 | 498,052 |
Non-accrual loans | 6,060 | 933 |
Total loans receivable | 713,087 | 499,201 |
30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 996 | 113 |
60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 362 | 49 |
Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 1,741 | 54 |
1-4 Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 142 | 148 |
Current | 124,855 | 115,966 |
Non-accrual loans | 24 | 281 |
Total loans receivable | 125,021 | 116,395 |
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 142 | 111 |
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 37 |
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial and Multi-Family Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 309,295 | 223,990 |
Non-accrual loans | 904 | 312 |
Total loans receivable | 310,199 | 224,302 |
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Agricultural Real Estate [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 64,316 | 56,071 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 64,316 | 56,071 |
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Agricultural Real Estate [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Consumer [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 165 | 68 |
Current | 33,362 | 29,261 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 33,527 | 29,329 |
Consumer [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 152 | 2 |
Consumer [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 12 |
Consumer [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 13 | 54 |
Commercial Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 29,893 | 30,846 |
Non-accrual loans | 0 | 0 |
Total loans receivable | 29,893 | 30,846 |
Commercial Operating [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Operating [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Commercial Operating [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Agricultural Operating [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Current | 38,494 | 41,918 |
Non-accrual loans | 5,132 | 340 |
Total loans receivable | 43,626 | 42,258 |
Agricultural Operating [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Agricultural Operating [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Agricultural Operating [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 0 | 0 |
Premium Finance [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 2,792 | |
Current | 103,713 | |
Non-accrual loans | 0 | |
Total loans receivable | 106,505 | $ 0 |
Premium Finance [Member] | 30-59 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 702 | |
Premium Finance [Member] | 60-89 Days Past Due [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | 362 | |
Premium Finance [Member] | Greater Than 90 Days [Member] | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Total past due | $ 1,728 |
LOANS RECEIVABLE, NET, Impaired
LOANS RECEIVABLE, NET, Impaired Loans (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | $ 578 | $ 4,539 |
Unpaid principal balance | 578 | 4,539 |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 6,036 | 1,865 |
Unpaid principal balance | 6,186 | 1,865 |
Specific allowance | 3,493 | 713 |
Average recorded investment in impaired loans | 5,928 | 7,163 |
1-4 Family Real Estate [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 121 | 142 |
Unpaid principal balance | 121 | 142 |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 0 | 245 |
Unpaid principal balance | 0 | 245 |
Specific allowance | 0 | 23 |
Average recorded investment in impaired loans | 238 | 574 |
Commercial and Multi-Family Real Estate [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 446 | 4,375 |
Unpaid principal balance | 446 | 4,375 |
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 904 | 1,280 |
Unpaid principal balance | 904 | 1,280 |
Specific allowance | 241 | 350 |
Average recorded investment in impaired loans | 2,114 | 6,526 |
Commercial Operating [Member] | ||
Loans without specific valuation allowance [Abstract] | ||
Recorded balance | 11 | 22 |
Unpaid principal balance | 11 | 22 |
Loans with a specific valuation allowance [Abstract] | ||
Average recorded investment in impaired loans | 17 | 34 |
Agricultural Operating [Member] | ||
Loans with a specific valuation allowance [Abstract] | ||
Recorded balance | 5,132 | 340 |
Unpaid principal balance | 5,282 | 340 |
Specific allowance | 3,252 | 340 |
Average recorded investment in impaired loans | $ 3,559 | $ 29 |
LOANS RECEIVABLE, NET, Troubled
LOANS RECEIVABLE, NET, Troubled Debt Restructured Loans (Details) - Contract | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
Troubled debt restructurings [Abstract] | ||
Loans modified in TDR | 0 | 0 |
Loans modified in TDR, subsequent default | 0 | 0 |
LOAN SERVICING (Details)
LOAN SERVICING (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 |
LOAN SERVICING [Abstract] | |||
Mortgage loan portfolios serviced for Fannie Mae | $ 5,055 | $ 5,948 | $ 7,361 |
Other | 17,156 | 16,576 | 9,930 |
Total | $ 22,211 | $ 22,524 | $ 17,291 |
EARNINGS PER COMMON SHARE (Deta
EARNINGS PER COMMON SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Earning [Abstract] | |||||||||||||||
Net Income | $ 4,639 | $ 4,640 | $ 5,181 | $ 3,595 | $ 3,363 | $ 4,204 | $ 4,144 | $ 4,002 | $ 3,474 | $ 3,672 | $ 3,147 | $ 3,125 | $ 18,055 | $ 15,713 | $ 13,418 |
Basic EPS [Abstract] | |||||||||||||||
Weighted average common shares outstanding (in shares) | 6,730,086 | 6,117,577 | 5,595,733 | ||||||||||||
Less weighted average nonvested shares (in shares) | (4,237) | (4,301) | (2,032) | ||||||||||||
Weighted average common shares outstanding (in shares) | 6,725,849 | 6,113,276 | 5,593,701 | ||||||||||||
Earnings Per Common Share [Abstract] | |||||||||||||||
Basic (in dollars per share) | $ 0.64 | $ 0.67 | $ 0.79 | $ 0.58 | $ 0.54 | $ 0.69 | $ 0.68 | $ 0.66 | $ 0.59 | $ 0.67 | $ 0.57 | $ 0.57 | $ 2.68 | $ 2.57 | $ 2.40 |
Diluted EPS [Abstract] | |||||||||||||||
Weighted average common shares outstanding for basic earnings per common share (in shares) | 6,725,849 | 6,113,276 | 5,593,701 | ||||||||||||
Add dilutive effect of assumed exercises of stock options, net of tax benefits (in shares) | 68,951 | 85,133 | 53,437 | ||||||||||||
Weighted average common and dilutive potential common shares outstanding (in shares) | 6,794,800 | 6,198,409 | 5,647,138 | ||||||||||||
Earnings Per Common Share [Abstract] | |||||||||||||||
Diluted (in dollars per share) | $ 0.64 | $ 0.66 | $ 0.78 | $ 0.58 | $ 0.53 | $ 0.68 | $ 0.67 | $ 0.65 | $ 0.58 | $ 0.66 | $ 0.57 | $ 0.57 | $ 2.66 | $ 2.53 | $ 2.38 |
Stock Options [Member] | |||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||
Securities excluded from computing diluted EPS (in shares) | 28,891 | 29,984 | 88,828 |
SECURITIES (Details)
SECURITIES (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | ||
Available-for-sale debt securities [Abstract] | ||||
Fair value | $ 576,583 | $ 657,870 | ||
Available-for-sale equity securities [Abstract] | ||||
Fair value | 679,504 | 482,346 | ||
Available-for-sale securities [Abstract] | ||||
Amortized cost | 1,254,661 | 1,148,414 | ||
Gross unrealized gains | 10,377 | 7,038 | ||
Gross unrealized (losses) | (8,951) | (15,236) | ||
Fair value | 1,256,087 | 1,140,216 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 545,994 | 280,692 | ||
OVER 12 MONTHS, Fair Value | 103,450 | 450,852 | ||
TOTAL, Fair Value | 649,444 | 731,544 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (5,161) | (1,442) | ||
OVER 12 MONTHS, Unrealized (Losses) | (3,790) | (13,794) | ||
TOTAL, Unrealized (Losses) | (8,951) | (15,236) | ||
AMORTIZED COST [Abstract] | ||||
Due in one year or less | 0 | 2,999 | ||
Due after one year through five years | 1,174 | 9,922 | ||
Due after five years through ten years | 370,087 | 285,413 | ||
Due after ten years | 302,596 | 185,851 | ||
Total Amortized Cost | 673,857 | 484,185 | ||
Mortgage-backed securities | 580,165 | 663,690 | ||
Common equities and mutual funds | 639 | 539 | ||
Amortized cost | 1,254,661 | 1,148,414 | ||
FAIR VALUE [Abstract] | ||||
Due in one year or less | 0 | 3,048 | ||
Due after one year through five years | 1,207 | 10,079 | ||
Due after five years through ten years | 376,394 | 285,698 | ||
Due after ten years | 300,989 | 182,696 | ||
Total Fair Value | 678,590 | 481,521 | ||
Mortgage-backed securities | 576,583 | 657,870 | ||
Common equities and mutual funds | 914 | 825 | ||
Total securities | 1,256,087 | 1,140,216 | ||
Summary of activities related to the sale of available for sale securities [Abstract] | ||||
Proceeds from sales | 566,371 | 166,804 | $ 209,172 | |
Gross gains on sales | 2,753 | 2,292 | 2,947 | |
Gross losses on sales | 4,387 | 2,185 | $ 401 | |
Held-to-maturity Securities [Abstract] | ||||
Amortized cost | 345,744 | 282,933 | ||
Gross unrealized gains | 2,182 | 942 | ||
Gross unrealized (losses) | (1,079) | (4,563) | ||
Fair value | 346,847 | 279,312 | ||
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 89,700 | 1,056 | ||
OVER 12 MONTHS, Fair Value | 72,695 | 230,200 | ||
TOTAL, Fair Value | 162,395 | 231,256 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (442) | (2) | ||
OVER 12 MONTHS, Unrealized (Losses) | (637) | (4,561) | ||
TOTAL, Unrealized (Losses) | (1,079) | (4,563) | ||
AMORTIZED COST [Abstract] | ||||
Due in one year or less | 95 | 347 | ||
Due after one year through five years | 8,411 | 4,726 | ||
Due after five years through ten years | 140,145 | 91,532 | ||
Due after ten years | 130,516 | 116,294 | ||
Total Amortized Cost | 279,167 | 212,899 | ||
Mortgage-backed securities | 66,577 | 70,034 | ||
Amortized cost | 345,744 | 282,933 | ||
FAIR VALUE [Abstract] | ||||
Due in one year or less | 96 | 348 | ||
Due after one year through five years | 8,430 | 4,718 | ||
Due after five years through ten years | 140,505 | 89,984 | ||
Due after ten years | 131,712 | 116,090 | ||
Total Fair Value | 280,743 | 211,140 | ||
Mortgage-backed securities | 66,104 | 68,172 | ||
Total securities | 346,847 | 279,312 | ||
Trust Preferred Securities [Member] | ||||
Available-for-sale securities [Abstract] | ||||
Amortized cost | [1] | 14,930 | 19,368 | |
Unrealized gain (loss) | [1] | (2,263) | (1,868) | |
Fair value | [1] | 12,667 | 17,500 | |
AMORTIZED COST [Abstract] | ||||
Amortized cost | [1] | 14,930 | 19,368 | |
FAIR VALUE [Abstract] | ||||
Total securities | [1] | 12,667 | 17,500 | |
S&P Credit Rating, BB+ [Member] | Moody Credit Rating, Baa3 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member] | ||||
Available-for-sale securities [Abstract] | ||||
Amortized cost | [1] | 4,986 | ||
Unrealized gain (loss) | [1] | (797) | ||
Fair value | [1] | 4,189 | ||
AMORTIZED COST [Abstract] | ||||
Amortized cost | [1] | 4,986 | ||
FAIR VALUE [Abstract] | ||||
Total securities | [1] | 4,189 | ||
S&P Credit Rating, BB+ [Member] | 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 securities | [1] | 4,300 | ||
S&P Credit Rating, BB [Member] | Moody Credit Rating, Baa3 [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] | (903) | ||
Fair value | [1] | 4,076 | ||
AMORTIZED COST [Abstract] | ||||
Amortized cost | [1] | 4,979 | ||
FAIR VALUE [Abstract] | ||||
Total securities | [1] | 4,076 | ||
S&P Credit Rating, BBB- [Member] | 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 securities | [1] | 4,400 | ||
S&P Credit Rating, BBB- [Member] | Moody Credit Rating, Baa2 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member] | ||||
Available-for-sale securities [Abstract] | ||||
Amortized cost | [1] | 4,965 | ||
Unrealized gain (loss) | [1] | (563) | ||
Fair value | [1] | 4,402 | ||
AMORTIZED COST [Abstract] | ||||
Amortized cost | [1] | 4,965 | ||
FAIR VALUE [Abstract] | ||||
Total securities | [1] | 4,402 | ||
S&P Credit Rating, BBB [Member] | 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 securities | [1] | 4,400 | ||
S&P Credit Rating, A- [Member] | 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 securities | [1] | 4,400 | ||
Debt Securities [Member] | ||||
Available-for-sale debt securities [Abstract] | ||||
Amortized cost | 1,254,022 | 1,147,875 | ||
Gross unrealized gains | 10,094 | 6,747 | ||
Gross unrealized (losses) | (8,943) | (15,231) | ||
Fair value | 1,255,173 | 1,139,391 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 545,994 | 280,569 | ||
OVER 12 MONTHS, Fair Value | 103,329 | 450,852 | ||
TOTAL, Fair Value | 649,323 | 731,421 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (5,161) | (1,437) | ||
OVER 12 MONTHS, Unrealized (Losses) | (3,782) | (13,794) | ||
TOTAL, Unrealized (Losses) | (8,943) | (15,231) | ||
Trust Preferred and Corporate Securities [Member] | ||||
Available-for-sale debt securities [Abstract] | ||||
Amortized cost | 16,199 | 48,747 | ||
Gross unrealized gains | 8 | 191 | ||
Gross unrealized (losses) | (2,263) | (2,009) | ||
Fair value | 13,944 | 46,929 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 0 | 6,073 | ||
OVER 12 MONTHS, Fair Value | 12,667 | 25,359 | ||
TOTAL, Fair Value | 12,667 | 31,432 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | (47) | ||
OVER 12 MONTHS, Unrealized (Losses) | (2,263) | (1,962) | ||
TOTAL, Unrealized (Losses) | (2,263) | (2,009) | ||
Small Business Administration Securities [Member] | ||||
Available-for-sale debt securities [Abstract] | ||||
Amortized cost | 54,493 | 66,541 | ||
Gross unrealized gains | 1,563 | 543 | ||
Gross unrealized (losses) | 0 | (72) | ||
Fair value | 56,056 | 67,012 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 8,454 | |||
OVER 12 MONTHS, Fair Value | 0 | |||
TOTAL, Fair Value | 8,454 | |||
LESS THAN 12 MONTHS, Unrealized (Losses) | (72) | |||
OVER 12 MONTHS, Unrealized (Losses) | 0 | |||
TOTAL, Unrealized (Losses) | (72) | |||
Obligations of States and Political Subdivisions [Member] | ||||
Held-to-maturity Securities [Abstract] | ||||
Amortized cost | 19,540 | 19,304 | ||
Gross unrealized gains | 60 | 48 | ||
Gross unrealized (losses) | (187) | (372) | ||
Fair value | 19,413 | 18,980 | ||
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 5,528 | 1,056 | ||
OVER 12 MONTHS, Fair Value | 7,964 | 14,079 | ||
TOTAL, Fair Value | 13,492 | 15,135 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (34) | (2) | ||
OVER 12 MONTHS, Unrealized (Losses) | (153) | (370) | ||
TOTAL, Unrealized (Losses) | (187) | (372) | ||
AMORTIZED COST [Abstract] | ||||
Amortized cost | 19,540 | 19,304 | ||
FAIR VALUE [Abstract] | ||||
Total securities | 19,413 | 18,980 | ||
Non-Bank Qualified Obligation of States And Political Subdivisions [Member] | ||||
Available-for-sale debt securities [Abstract] | ||||
Amortized cost | 603,165 | 368,897 | ||
Gross unrealized gains | 7,240 | 2,494 | ||
Gross unrealized (losses) | (1,815) | (3,811) | ||
Fair value | 608,590 | 367,580 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 97,006 | 27,062 | ||
OVER 12 MONTHS, Fair Value | 42,583 | 191,146 | ||
TOTAL, Fair Value | 139,589 | 218,208 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (860) | (70) | ||
OVER 12 MONTHS, Unrealized (Losses) | (955) | (3,741) | ||
TOTAL, Unrealized (Losses) | (1,815) | (3,811) | ||
Held-to-maturity Securities [Abstract] | ||||
Amortized cost | 259,627 | 193,595 | ||
Gross unrealized gains | 2,122 | 894 | ||
Gross unrealized (losses) | (419) | (2,329) | ||
Fair value | 261,330 | 192,160 | ||
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 78,663 | 0 | ||
OVER 12 MONTHS, Fair Value | 4,136 | 147,949 | ||
TOTAL, Fair Value | 82,799 | 147,949 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (365) | 0 | ||
OVER 12 MONTHS, Unrealized (Losses) | (54) | (2,329) | ||
TOTAL, Unrealized (Losses) | (419) | (2,329) | ||
AMORTIZED COST [Abstract] | ||||
Amortized cost | 259,627 | 193,595 | ||
FAIR VALUE [Abstract] | ||||
Total securities | 261,330 | 192,160 | ||
Mortgage-backed Securities [Member] | ||||
Available-for-sale debt securities [Abstract] | ||||
Amortized cost | 580,165 | 663,690 | ||
Gross unrealized gains | 1,283 | 3,519 | ||
Gross unrealized (losses) | (4,865) | (9,339) | ||
Fair value | 576,583 | 657,870 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 448,988 | 238,980 | ||
OVER 12 MONTHS, Fair Value | 48,079 | 234,347 | ||
TOTAL, Fair Value | 497,067 | 473,327 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (4,301) | (1,248) | ||
OVER 12 MONTHS, Unrealized (Losses) | (564) | (8,091) | ||
TOTAL, Unrealized (Losses) | (4,865) | (9,339) | ||
Held-to-maturity Securities [Abstract] | ||||
Amortized cost | 66,577 | 70,034 | ||
Gross unrealized gains | 0 | 0 | ||
Gross unrealized (losses) | (473) | (1,862) | ||
Fair value | 66,104 | 68,172 | ||
Held-to-maturity securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 5,509 | 0 | ||
OVER 12 MONTHS, Fair Value | 60,595 | 68,172 | ||
TOTAL, Fair Value | 66,104 | 68,172 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | (43) | 0 | ||
OVER 12 MONTHS, Unrealized (Losses) | (430) | (1,862) | ||
TOTAL, Unrealized (Losses) | (473) | (1,862) | ||
AMORTIZED COST [Abstract] | ||||
Amortized cost | 66,577 | 70,034 | ||
FAIR VALUE [Abstract] | ||||
Total securities | 66,104 | 68,172 | ||
Common Equities and Mutual Funds [Member] | ||||
Available-for-sale equity securities [Abstract] | ||||
Amortized cost | 639 | 539 | ||
Gross unrealized gains | 283 | 291 | ||
Gross unrealized (losses) | (8) | (5) | ||
Fair value | 914 | 825 | ||
Available-for-sale securities in a continuous unrealized loss position [Abstract] | ||||
LESS THAN 12 MONTHS, Fair Value | 0 | 123 | ||
OVER 12 MONTHS, Fair Value | 121 | 0 | ||
TOTAL, Fair Value | 121 | 123 | ||
LESS THAN 12 MONTHS, Unrealized (Losses) | 0 | (5) | ||
OVER 12 MONTHS, Unrealized (Losses) | (8) | 0 | ||
TOTAL, Unrealized (Losses) | $ (8) | $ (5) | ||
[1] | Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination. |
PREMISES, FURNITURE, AND EQUI64
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | $ 49,723 | $ 44,895 | |
Less: accumulated depreciation and amortization | (32,330) | (28,433) | |
Net book value | 17,393 | 16,462 | |
Depreciation expense of premises, furniture, and equipment | 4,600 | 3,500 | $ 3,300 |
Amortization expense on capitalized leases | 100 | 0 | $ 0 |
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 1,578 | 1,673 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 10,315 | 12,275 | |
Furniture, Fixtures, and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | 35,571 | 30,947 | |
Capitalized Leases [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises, furniture, and equipment, gross | $ 2,259 | $ 0 |
TIME CERTIFICATES OF DEPOSITS65
TIME CERTIFICATES OF DEPOSITS (Details) - USD ($) | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
TIME CERTIFICATES OF DEPOSITS [Abstract] | ||
Time certificates of deposits in denominations of $250,000 or more | $ 38,500,000 | $ 87,100,000 |
Time Deposits, Fiscal Year Maturity [Abstract] | ||
2,016 | 66,964,000 | |
2,017 | 13,638,000 | |
2,018 | 5,594,000 | |
2,019 | 2,787,000 | |
2,020 | 2,188,000 | |
Thereafter | 0 | |
Total Certificates | 91,171,000 | $ 134,553,000 |
IRA deposit accounts permanently insured by DIF under management of FDIC | 250,000 | |
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC | 250,000 | |
Coverage temporary insured by FDIC until December 2013 | $ 250,000 |
ADVANCES FROM THE FEDERAL HOM66
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
ADVANCES FROM THE FEDERAL HOME LOAN BANK AND OTHER BORROWINGS [Abstract] | ||
Fixed rate of FHLB advances, interest rate range from | 6.97% | |
Fixed rate of FHLB advances, interest rate range to | 7.01% | |
Weighted average rate of FHLB advances | 6.98% | |
Maturities of FHLB advances [Abstract] | ||
2,016 | $ 0 | |
2,017 | 0 | |
2,018 | 0 | |
2,019 | 5,000 | |
2,020 | 2,000 | |
Thereafter | 0 | |
Total FHLB Advances | 7,000 | |
Federal funds purchased | 540,000 | $ 470,000 |
Advances from FHLB | 7,000 | $ 7,000 |
Weighted average rate | 6.98% | |
Pledged securities against specific FHLB advances, fair value | 625,200 | $ 422,900 |
Qualified mortgage loans pledged as collateral | $ 106,500 | $ 83,300 |
SECURITIES SOLD UNDER AGREEME67
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Sep. 30, 2015 | Sep. 30, 2014 | |
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE [Abstract] | ||
Securities sold under agreements to repurchase, total | $ 4,007 | $ 10,411 |
Analysis of securities sold under agreement to repurchase [Abstract] | ||
Highest month-end balance | 17,400 | 33,999 |
Average balance | $ 10,884 | $ 10,137 |
Weighted average interest rate for the year | 0.52% | 0.52% |
Weighted average interest rate at year end | 0.58% | 0.52% |
Securities pledged as collateral for securities sold under agreement to repurchase, fair value | $ 20,600 | $ 36,400 |
SUBORDINATED DEBENTURES AND T68
SUBORDINATED DEBENTURES AND TRUST PREFERRED SECURITIES (Details) - First Midwest Financial Capital Trust I [Member] | 12 Months Ended | |
Sep. 30, 2015Period$ / sharesshares | Sep. 30, 2014 | |
Subsidiary or Equity Method Investee [Line Items] | ||
Equity method investment, ownership percentage | 100.00% | |
Issuance of trust preferred securities (in shares) | 10,000 | |
Number of authorized shares of trust preferred securities issued (in shares) | 10,310 | |
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period | 10 | |
Redemption price per capital security (in dollars per share) | $ / shares | $ 1,000 | |
LIBOR [Member] | ||
Subsidiary or Equity Method Investee [Line Items] | ||
Basis spread on variable rate | 3.75% | |
Effective interest rate | 4.28% | 4.08% |
Effective interest rate, maximum | 12.50% |
EMPLOYEE STOCK OWNERSHIP AND 69
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details) - USD ($) | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract] | |||
Number of hours of employment required for ESOP | 1000 hours | ||
Years of employment to be eligible for ESOP | 1 year | ||
Eligible age for ESOP | 21 years | ||
Employee Stock Ownership Plan (ESOP), Expense | $ 994,000 | $ 703,000 | $ 694,000 |
Contribution to ESOP | $ 992,038 | $ 850,406 | $ 485,548 |
Percentage of benefits vested after credited service | 100.00% | ||
Years of credited service | 7 years | ||
Number of shares (ESOP) released (in shares) | 23,750 | 24,125 | 17,715 |
Fair value of shares (ESOP) released (in dollars per share) | $ 41.77 | $ 35.25 | $ 37.99 |
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares) | 10,294 | 10,643 | 45,225 |
Shares purchased for dividend reinvestment (in shares) | 2,974 | 2,529 | 3,526 |
Year-end ESOP shares [Abstract] | |||
Allocated shares (in shares) | 256,283 | 239,879 | 223,868 |
Unearned shares (in shares) | 0 | 0 | 0 |
Total ESOP shares (in shares) | 256,283 | 239,879 | 223,868 |
Fair value of unearned shares | $ 0 | $ 0 | $ 0 |
Contribution expense to profit sharing plan included in compensation and benefits | $ 1,100,000 | $ 900,000 | $ 800,000 |
SHARE BASED COMPENSATION PLAN70
SHARE BASED COMPENSATION PLANS (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
Effect to income of share-based compensation expense, net of tax benefits [Abstract] | |||
Total employee stock-based compensation expense recognized in income, net of tax effects of $192, $66 and $51, respectively | $ 334 | $ 120 | $ 103 |
Tax effects of employee's stock-based compensation expense recognized income | 192 | 66 | 51 |
Stock based compensation expense not yet recognized in income | $ 400 | ||
Weighted average remaining period for unrecognized stock based compensation | 1 year 11 months 5 days | ||
Period that options are issued | 10 years | ||
Percentage of options vesting at either grant date or over four year period | 100.00% | ||
Period that options vest | 4 years | ||
Vested in period, fair value | $ 200 | $ 100 | $ 100 |
Number of Shares [Roll Forward] | |||
Options outstanding, beginning of period (in shares) | 235,766 | 318,648 | |
Granted (in shares) | 0 | 0 | 0 |
Exercised (in shares) | (46,678) | (82,882) | |
Forfeited or expired (in shares) | 0 | 0 | |
Options outstanding, end of period (in shares) | 189,088 | 235,766 | 318,648 |
Options exercisable end of year (in shares) | 189,088 | 235,766 | |
Weighted Average Exercise Price [Roll Forward] | |||
Options outstanding, beginning of period (in dollars per share) | $ 25.20 | $ 24.44 | |
Granted (in dollars per share) | 0 | 0 | |
Exercised (in dollars per share) | 22.98 | 22.31 | |
Forfeited or expired (in dollars per share) | 0 | 0 | |
Options outstanding, end of period (in dollars per share) | 25.74 | 25.20 | $ 24.44 |
Options exercisable end of year (in dollars per share) | $ 25.74 | $ 25.20 | |
Weighted Average Remaining Contractual Term (Yrs) [Abstract] | |||
Options outstanding , weighted average remaining contractual term (Yrs) | 3 years 1 month 28 days | 3 years 9 months 11 days | 4 years 2 months 5 days |
Options exercisable end of year, weighted average remaining contractual term (Yrs) | 3 years 1 month 28 days | 3 years 9 months 11 days | |
Aggregate Intrinsic Value [Abstract] | |||
Options outstanding, beginning of period | $ 2,507 | $ 4,376 | |
Granted | 0 | 0 | |
Exercised | 925 | 1,389 | $ 800 |
Forfeited or expired | 0 | 0 | |
Options outstanding, end of period | 4,671 | 2,507 | $ 4,376 |
Options exercisable end of year | $ 4,671 | $ 2,507 | |
Nonvested Shares Outstanding, Number of Shares [Roll Forward] | |||
Nonvested shares outstanding, beginning of period (in shares) | 4,000 | 4,000 | |
Granted (in shares) | 51,217 | 4,267 | |
Vested (in shares) | (11,215) | (4,267) | |
Forfeited or expired (in shares) | 0 | 0 | |
Nonvested shares outstanding, end of period (in shares) | 44,002 | 4,000 | 4,000 |
Nonvested Shares Outstanding, Weighted Average Grant Date Fair Value [Roll Forward] | |||
Nonvested shares outstanding, beginning of period (in dollars per share) | $ 28.61 | $ 25.67 | |
Granted (in dollars per share) | 41.10 | 37.82 | |
Vested (in dollars per share) | 37.81 | 35.07 | |
Forfeited or expired (in dollars per share) | 0 | 0 | |
Nonvested shares outstanding, end of period (in dollars per share) | $ 40.80 | $ 28.61 | $ 25.67 |
INCOME TAXES (Details)
INCOME TAXES (Details) - USD ($) | 12 Months Ended | |||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 1987 | |
Federal [Abstract] | ||||
Current | $ 4,217,000 | $ 3,787,000 | $ 2,847,000 | |
Deferred | (3,896,000) | (1,765,000) | (536,000) | |
Federal income tax expense | 321,000 | 2,022,000 | 2,311,000 | |
State [Abstract] | ||||
Current | 1,048,000 | 874,000 | 1,252,000 | |
Deferred | (1,000) | 10,000 | 141,000 | |
State tax expense | 1,047,000 | 884,000 | 1,393,000 | |
Income tax expense | 1,368,000 | 2,906,000 | 3,704,000 | |
Income tax expense (benefit) to statutory federal income tax rate reconciliation [Abstract] | ||||
Income tax expense at federal tax rate | 6,798,000 | 6,517,000 | 5,993,000 | |
Increase (decrease) resulting from [Abstract] | ||||
State income taxes net of federal benefit | 692,000 | 575,000 | 1,092,000 | |
Nontaxable buildup in cash surrender value | (711,000) | (399,000) | (349,000) | |
Incentive stock option expense | (37,000) | (187,000) | (97,000) | |
Tax exempt income | (5,230,000) | (3,594,000) | (2,815,000) | |
Nondeductible expenses | 188,000 | 120,000 | 41,000 | |
Other, net | (332,000) | (126,000) | (161,000) | |
Income tax expense | 1,368,000 | 2,906,000 | 3,704,000 | |
Deferred tax assets [Abstract] | ||||
Bad debts | 2,286,000 | 1,955,000 | $ 6,700,000 | |
Deferred compensation | 1,040,000 | 708,000 | ||
Stock based compensation | 235,000 | 271,000 | ||
Operational reserve | 453,000 | 464,000 | ||
AMT Credit | 4,490,000 | 2,239,000 | ||
Intangibles | 573,000 | 0 | ||
Net unrealized losses on securities available for sale | 0 | 2,969,000 | ||
Indirect tax benefits of unrecognized tax positions | 384,000 | 376,000 | ||
Other assets | 1,293,000 | 759,000 | ||
Gross deferred tax assets | 10,754,000 | 9,741,000 | ||
Deferred tax liabilities [Abstract] | ||||
FHLB stock dividend | (414,000) | (410,000) | ||
Premises and equipment | (1,222,000) | (1,060,000) | ||
Patents | (967,000) | (937,000) | ||
Prepaid expenses | (633,000) | (743,000) | ||
Net unrealized gains on securities available for sale | (521,000) | 0 | ||
Deferred loan fees | 0 | 0 | ||
Gross deferred tax liabilities | (3,757,000) | (3,150,000) | ||
Net deferred tax assets (liabilities) | 6,997,000 | 6,591,000 | ||
Gross deferred tax on state net operating loss carryforwards | 829,000 | 780,000 | ||
Additional bad debt deductions provided by federal income tax laws | 2,286,000 | 1,955,000 | $ 6,700,000 | |
Deferred tax liability, bad debt deductions | 2,300,000 | 2,300,000 | ||
Reconciliation for liabilities [Abstract] | ||||
Balance at beginning of year | 983,000 | 931,000 | ||
Additions for tax positions related to the current year | 49,000 | 118,000 | ||
Additions for tax positions related to the prior years | 4,000 | 0 | ||
Reductions for tax positions due to settlement with taxing authorities | (62,000) | (16,000) | ||
Reductions for tax positions related to prior years | 0 | (50,000) | ||
Balance at end of year | 974,000 | $ 983,000 | $ 931,000 | |
Unrecognized tax benefits that, if recognized, would impact the effective rate | 641,000 | |||
Accrued interest related to unrecognized tax benefits | $ 155,000 |
CAPITAL REQUIREMENTS AND REST72
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Tier 1 (core) capital (to adjusted total assets), amount | $ 224,426 | $ 176,388 | ||||
Tier 1 (core) capital (to adjusted total assets), ratio | 9.36% | 8.60% | ||||
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, amount | $ 8,977 | $ 82,057 | ||||
Tier 1 (core) capital (to adjusted total assets), minimum requirement for capital adequacy purposes, ratio | 4.00% | 4.00% | ||||
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount | $ 11,221 | $ 102,571 | ||||
Tier 1 (core) capital (to adjusted total assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 5.00% | 5.00% | ||||
Common equity Tier 1 (to risk-weighted assets), actual amount | [1] | $ 216,931 | ||||
Common equity Tier 1 (to risk-weighted assets), actual ratio | 19.85% | |||||
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, amount | $ 9,762 | |||||
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 4.50% | |||||
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount | $ 14,101 | |||||
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 6.50% | |||||
Tangible capital (to tangible assets), actual amount | $ 176,388 | |||||
Tangible capital (to tangible assets), actual ratio | 8.60% | |||||
Tangible capital (to tangible assets), minimum requirement for capital adequacy purposes, amount | $ 30,771 | |||||
Tangible capital (to tangible assets), minimum requirement for capital adequacy purposes, ratio | 1.50% | |||||
Tier 1 (core) capital (to risk-weighted assets), actual amount | $ 224,426 | [1] | $ 176,388 | |||
Tier 1 (core) capital ( to risk weighted assets), ratio | 20.54% | 20.95% | ||||
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, amount | $ 13,466 | $ 33,672 | ||||
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 6.00% | 4.00% | ||||
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount | $ 17,954 | $ 50,508 | ||||
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 8.00% | 6.00% | ||||
Total qualifying capital (to risk-weighted assets), actual amount | [1] | $ 230,820 | ||||
Total qualifying capital (to risk-weighted assets), ratio | 21.12% | |||||
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, amount | $ 18,466 | |||||
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio | 8.00% | |||||
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount | $ 23,082 | |||||
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 10.00% | |||||
Total risk based capital (to risk weighted assets), actual amount | $ 181,786 | |||||
Total risk based capital (to risk weighted assets), ratio | 21.59% | |||||
Total risk based capital (to risk weighted assets), minimum requirement for capital adequacy purposes, amount | $ 67,344 | |||||
Total risk based capital (to risk weighted assets), minimum requirement for capital adequacy purposes, ratio | 8.00% | |||||
Total risk based capital (to risk weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, amount | $ 84,180 | |||||
Total risk based capital (to risk weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio | 10.00% | |||||
Reconciliation of capital amounts [Abstract] | ||||||
Total equity | $ 271,335 | [1] | $ 174,802 | $ 142,984 | $ 145,859 | |
Adjustments: | ||||||
Goodwill, net of associated deferred tax liabilities | [1] | 36,642 | ||||
LESS: Certain other intangible assets | [1] | 13,431 | ||||
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards | [1] | 1,876 | ||||
LESS: Net unrealized gains (losses) on available-for-sale securities | [1] | 2,455 | ||||
Common Equity Tier 1 (1) | [1] | 216,931 | ||||
Long-term debt and other instruments qualifying as Tier 1 | 10,310 | [1] | 10,310 | |||
LESS: Additional tier 1 capital deductions | [1] | 2,815 | ||||
Total Tier 1 capital | 224,426 | [1] | 176,388 | |||
Allowance for loan losses | [1] | 6,394 | ||||
Total qualifying capital | [1] | 230,820 | ||||
MetaBank [Member] | ||||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||||
Tier 1 (core) capital (to adjusted total assets), amount | $ 213,219 | $ 176,388 | ||||
Tier 1 (core) capital (to adjusted total assets), ratio | 8.89% | 8.60% | ||||
Common equity Tier 1 (to risk-weighted assets), actual amount | $ 213,219 | |||||
Common equity Tier 1 (to risk-weighted assets), actual ratio | 19.52% | |||||
Tangible capital (to tangible assets), actual amount | $ 176,388 | |||||
Tangible capital (to tangible assets), actual ratio | 8.60% | |||||
Tier 1 (core) capital (to risk-weighted assets), actual amount | $ 213,219 | $ 176,388 | ||||
Tier 1 (core) capital ( to risk weighted assets), ratio | 19.52% | 20.95% | ||||
Total qualifying capital (to risk-weighted assets), actual amount | $ 219,613 | |||||
Total qualifying capital (to risk-weighted assets), ratio | 20.11% | |||||
Total risk based capital (to risk weighted assets), actual amount | $ 181,786 | |||||
Total risk based capital (to risk weighted assets), ratio | 21.59% | |||||
Adjustments: | ||||||
Common Equity Tier 1 (1) | $ 213,219 | |||||
Total Tier 1 capital | 213,219 | $ 176,388 | ||||
Total qualifying capital | $ 219,613 | |||||
[1] | Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Details) $ in Millions | 12 Months Ended | |
Sep. 30, 2015USD ($)CommitmentCompanyClassActionCourt | Sep. 30, 2014USD ($) | |
COMMITMENTS AND CONTINGENCIES [Abstract] | ||
Unfunded loan commitments | $ 158.3 | $ 96 |
Number of commitment to purchase securities, available for sale | Commitment | 2 | |
Purchase commitment amount, available for sale | $ 7.9 | |
Number of commitment to purchase securities, held to maturity | Commitment | 3 | |
Purchase commitment amount, held to maturity | $ 3 | |
Commitment to purchase securities | 0 | |
Securities pledged as collateral for public funds on deposit | 5.8 | 5.8 |
Securities pledged as collateral for individual, trust, and estate deposits | $ 0 | $ 7.4 |
Loss Contingencies [Line Items] | ||
Number of identified limited liability companies | Company | 3 | |
Number of class action litigations | ClassAction | 4 | |
Number of federal district courts | Court | 3 | |
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 | |
UniRush, LLC [Member] | ||
Loss Contingencies [Line Items] | ||
Period of inability of customers of prepaid card product to access product | 14 days |
LEASE COMMITMENTS (Details)
LEASE COMMITMENTS (Details) | 12 Months Ended |
Sep. 30, 2015USD ($) | |
LEASE COMMITMENTS [Abstract] | |
Expiration period of various noncancelable operating lease agreements | Dec. 31, 2036 |
Annual rent, minimum | $ 600 |
Annual rent, maximum | $ 789,000 |
Expiration period of capital lease agreements | Dec. 31, 2035 |
Amortization expense for capital leases | $ 100,000 |
Total minimum rental commitments for operating leases [Abstract] | |
2,016 | 1,708,000 |
2,017 | 1,752,000 |
2,018 | 1,464,000 |
2,019 | 1,394,000 |
2,020 | 1,277,000 |
Thereafter | 12,476,000 |
Total Leases Commitments | 20,071,000 |
Total minimum rental commitments for capital leases [Abstract] | |
2,016 | 252,000 |
2,017 | 201,000 |
2,018 | 179,000 |
2,019 | 179,000 |
2,020 | 182,000 |
Thereafter | 2,604,000 |
Total Leases Commitments | 3,597,000 |
Executory costs | 0 |
Amounts representing interest | 1,454,000 |
Present value of net minimum lease payments | $ 2,143,000 |
SEGMENT REPORTING (Details)
SEGMENT REPORTING (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2015USD ($) | Jun. 30, 2015USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Sep. 30, 2014USD ($) | Jun. 30, 2014USD ($) | Mar. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Sep. 30, 2013USD ($) | Jun. 30, 2013USD ($) | Mar. 31, 2013USD ($) | Dec. 31, 2012USD ($) | Sep. 30, 2015USD ($)Segment | Sep. 30, 2014USD ($) | Sep. 30, 2013USD ($) | |
Segment Reporting Information [Line Items] | |||||||||||||||
Number of reportable segments | Segment | 2 | ||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | $ 61,607 | $ 48,660 | $ 38,976 | ||||||||||||
Interest expense | $ 660 | $ 593 | $ 473 | $ 661 | $ 567 | $ 638 | $ 544 | $ 649 | $ 642 | $ 666 | $ 813 | $ 833 | 2,387 | 2,398 | 2,954 |
Net interest income (expense) | 59,220 | 46,262 | 36,022 | ||||||||||||
Provision (recovery) for loan losses | 124 | 700 | 593 | 48 | 550 | 300 | 300 | 0 | 300 | 0 | (300) | 0 | 1,465 | 1,150 | 0 |
Non-interest income | 58,174 | 51,738 | 55,503 | ||||||||||||
Non-interest expense | 96,506 | 78,231 | 74,403 | ||||||||||||
Income (loss) before income tax expense (benefit) | 19,423 | 18,619 | 17,122 | ||||||||||||
Income tax expense (benefit) | 1,368 | 2,906 | 3,704 | ||||||||||||
Net income | 4,639 | $ 4,640 | $ 5,181 | $ 3,595 | 3,363 | $ 4,204 | $ 4,144 | $ 4,002 | 3,474 | $ 3,672 | $ 3,147 | $ 3,125 | 18,055 | 15,713 | 13,418 |
Total assets | 2,529,705 | 2,054,031 | 1,691,989 | 2,529,705 | 2,054,031 | 1,691,989 | |||||||||
Total deposits | 1,657,534 | 1,366,541 | 1,315,283 | 1,657,534 | 1,366,541 | 1,315,283 | |||||||||
All Others [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 6,037 | 0 | 0 | ||||||||||||
Interest expense | 543 | 348 | 469 | ||||||||||||
Net interest income (expense) | 5,494 | (348) | (469) | ||||||||||||
Provision (recovery) for loan losses | 465 | 0 | 0 | ||||||||||||
Non-interest income | 1,514 | 0 | (13) | ||||||||||||
Non-interest expense | 6,311 | 770 | 941 | ||||||||||||
Income (loss) before income tax expense (benefit) | 232 | (1,118) | (1,423) | ||||||||||||
Income tax expense (benefit) | 17 | (422) | (522) | ||||||||||||
Net income | 215 | (696) | (901) | ||||||||||||
Total assets | 109,672 | 3,427 | 2,704 | 109,672 | 3,427 | 2,704 | |||||||||
Total deposits | (9,350) | (6,406) | (9,012) | (9,350) | (6,406) | (9,012) | |||||||||
Reportable Segments [Member] | Retail Banking [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 33,980 | 31,635 | 24,169 | ||||||||||||
Interest expense | 1,675 | 1,926 | 2,361 | ||||||||||||
Net interest income (expense) | 32,305 | 29,709 | 21,808 | ||||||||||||
Provision (recovery) for loan losses | 1,000 | 1,150 | 0 | ||||||||||||
Non-interest income | 2,243 | 3,214 | 5,226 | ||||||||||||
Non-interest expense | 23,780 | 21,227 | 19,479 | ||||||||||||
Income (loss) before income tax expense (benefit) | 9,768 | 10,546 | 7,555 | ||||||||||||
Income tax expense (benefit) | 688 | 1,846 | 1,615 | ||||||||||||
Net income | 9,080 | 8,700 | 5,940 | ||||||||||||
Total assets | 840,177 | 805,494 | 487,754 | 840,177 | 805,494 | 487,754 | |||||||||
Total deposits | 242,580 | 273,399 | 260,525 | 242,580 | 273,399 | 260,525 | |||||||||
Reportable Segments [Member] | Meta Payment Systems [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Interest income | 21,590 | 17,025 | 14,807 | ||||||||||||
Interest expense | 169 | 124 | 124 | ||||||||||||
Net interest income (expense) | 21,421 | 16,901 | 14,683 | ||||||||||||
Provision (recovery) for loan losses | 0 | 0 | 0 | ||||||||||||
Non-interest income | 54,417 | 48,524 | 50,290 | ||||||||||||
Non-interest expense | 66,415 | 56,234 | 53,983 | ||||||||||||
Income (loss) before income tax expense (benefit) | 9,423 | 9,191 | 10,990 | ||||||||||||
Income tax expense (benefit) | 663 | 1,482 | 2,611 | ||||||||||||
Net income | 8,760 | 7,709 | 8,379 | ||||||||||||
Total assets | 1,579,856 | 1,245,110 | 1,201,531 | 1,579,856 | 1,245,110 | 1,201,531 | |||||||||
Total deposits | $ 1,424,304 | $ 1,099,548 | $ 1,063,770 | 1,424,304 | 1,099,548 | 1,063,770 | |||||||||
Intersegment Eliminations [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Inter-segment revenue (expense) | 0 | 0 | 0 | ||||||||||||
Intersegment Eliminations [Member] | Retail Banking [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Inter-segment revenue (expense) | (16,547) | 12,793 | 12,106 | ||||||||||||
Intersegment Eliminations [Member] | Meta Payment Systems [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Inter-segment revenue (expense) | 16,547 | (12,793) | (12,106) | ||||||||||||
Intersegment Eliminations [Member] | All Others [Member] | |||||||||||||||
Segment data [Abstract] | |||||||||||||||
Inter-segment revenue (expense) | $ 0 | $ 0 | $ 0 |
PARENT COMPANY FINANCIAL STAT76
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | Sep. 30, 2012 | ||
ASSETS [Abstract] | ||||||||||||||||||||
Cash and cash equivalents | $ 27,658 | $ 29,832 | $ 29,832 | $ 40,063 | $ 40,063 | $ 145,051 | $ 29,832 | $ 29,832 | $ 145,051 | $ 27,658 | $ 29,832 | $ 40,063 | $ 145,051 | |||||||
Other assets | 777 | 752 | ||||||||||||||||||
Total assets | 2,529,705 | 2,054,031 | 1,691,989 | |||||||||||||||||
LIABILITIES [Abstract] | ||||||||||||||||||||
Subordinated debentures | 10,310 | [1] | 10,310 | |||||||||||||||||
Total liabilities | 2,258,370 | 1,879,229 | ||||||||||||||||||
STOCKOLDERS' EQUITY [Abstract] | ||||||||||||||||||||
Common stock | 82 | 62 | ||||||||||||||||||
Additional paid-in capital | 170,749 | 95,079 | ||||||||||||||||||
Retained earnings | 98,359 | 83,797 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | 2,455 | (3,409) | ||||||||||||||||||
Treasury stock, at cost | (310) | (727) | ||||||||||||||||||
Total stockholders' equity | 271,335 | [1] | 174,802 | 142,984 | 145,859 | |||||||||||||||
Total liabilities and stockholders' equity | 2,529,705 | 2,054,031 | ||||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ||||||||||||||||||||
Total other income | 58,174 | 51,738 | 55,503 | |||||||||||||||||
Interest expense | 660 | $ 593 | $ 473 | 661 | 567 | $ 638 | $ 544 | 649 | 642 | $ 666 | $ 813 | 833 | 2,387 | 2,398 | 2,954 | |||||
Other expense | 14,244 | 9,115 | 9,388 | |||||||||||||||||
Income tax expense (benefit) | 1,368 | 2,906 | 3,704 | |||||||||||||||||
Net income | 4,639 | 4,640 | 5,181 | 3,595 | 3,363 | 4,204 | 4,144 | 4,002 | 3,474 | 3,672 | 3,147 | 3,125 | 18,055 | 15,713 | 13,418 | |||||
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | ||||||||||||||||||||
Net income | 4,639 | $ 4,640 | $ 5,181 | 3,595 | 3,363 | $ 4,204 | $ 4,144 | 4,002 | 3,474 | $ 3,672 | $ 3,147 | 3,125 | 18,055 | 15,713 | 13,418 | |||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract] | ||||||||||||||||||||
Depreciation, amortization and accretion, net | 28,882 | 18,147 | 21,104 | |||||||||||||||||
Change in other assets | (672) | (807) | (9,876) | |||||||||||||||||
Change in other liabilities | 6,780 | (2,326) | (43,183) | |||||||||||||||||
Net cash provided by (used in) operating activities | 48,956 | 25,813 | (23,068) | |||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITES [Abstract] | ||||||||||||||||||||
Net cash provided by (used in) investing activities | (453,915) | (367,796) | (198,660) | |||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | ||||||||||||||||||||
Cash dividends paid | (3,493) | (3,184) | (2,926) | |||||||||||||||||
Stock compensation | 258 | 88 | 165 | |||||||||||||||||
Proceeds from exercise of stock options | 51,547 | 2,325 | 15,266 | |||||||||||||||||
Net cash provided by (used in) financing activities | 402,785 | 331,752 | 116,740 | |||||||||||||||||
Net change in cash and cash equivalents | (2,174) | (10,231) | (104,988) | |||||||||||||||||
CASH AND CASH EQUIVALENTS [Abstract] | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | 29,832 | 40,063 | 145,051 | 29,832 | 40,063 | 145,051 | ||||||||||||||
Cash and cash equivalents at end of year | 27,658 | 29,832 | 40,063 | 27,658 | 29,832 | 40,063 | ||||||||||||||
Meta Financial [Member] | ||||||||||||||||||||
ASSETS [Abstract] | ||||||||||||||||||||
Cash and cash equivalents | 14,280 | 9,439 | 9,439 | 11,386 | 11,386 | 6,105 | 14,280 | 9,439 | 6,105 | 14,280 | 9,439 | $ 11,386 | $ 6,105 | |||||||
Investment in subsidiaries | 267,623 | 175,568 | ||||||||||||||||||
Other assets | 408 | 393 | ||||||||||||||||||
Total assets | 282,311 | 185,400 | ||||||||||||||||||
LIABILITIES [Abstract] | ||||||||||||||||||||
Subordinated debentures | 10,310 | 10,310 | ||||||||||||||||||
Other liabilities | 666 | 288 | ||||||||||||||||||
Total liabilities | 10,976 | 10,598 | ||||||||||||||||||
STOCKOLDERS' EQUITY [Abstract] | ||||||||||||||||||||
Common stock | 82 | 62 | ||||||||||||||||||
Additional paid-in capital | 170,749 | 95,079 | ||||||||||||||||||
Retained earnings | 98,359 | 83,797 | ||||||||||||||||||
Accumulated other comprehensive income (loss) | 2,455 | (3,409) | ||||||||||||||||||
Treasury stock, at cost | (310) | (727) | ||||||||||||||||||
Total stockholders' equity | 271,335 | 174,802 | ||||||||||||||||||
Total liabilities and stockholders' equity | $ 282,311 | $ 185,400 | ||||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | ||||||||||||||||||||
Total other income | 0 | 0 | 0 | |||||||||||||||||
Interest expense | 418 | 348 | 469 | |||||||||||||||||
Other expense | 269 | 770 | 941 | |||||||||||||||||
Total expense | 687 | 1,118 | 1,410 | |||||||||||||||||
Gain (Loss) before income taxes and equity in undistributed net income of subsidiaries | (687) | (1,118) | (1,410) | |||||||||||||||||
Income tax expense (benefit) | (324) | (422) | (509) | |||||||||||||||||
Gain (Loss) before equity in undistributed net income of subsidiaries | (363) | (696) | (901) | |||||||||||||||||
Equity in undistributed net income of subsidiaries | 18,418 | 16,409 | 14,319 | |||||||||||||||||
Net income | 18,055 | 15,713 | 13,418 | |||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES [Abstract] | ||||||||||||||||||||
Net income | 18,055 | 15,713 | 13,418 | |||||||||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract] | ||||||||||||||||||||
Depreciation, amortization and accretion, net | 0 | (310) | 0 | |||||||||||||||||
Equity in undistributed net income of subsidiaries | (18,418) | (16,409) | (14,319) | |||||||||||||||||
Change in other assets | (15) | 246 | 54 | |||||||||||||||||
Change in other liabilities | 378 | (332) | (339) | |||||||||||||||||
Net cash provided by (used in) operating activities | 0 | (1,092) | (1,186) | |||||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITES [Abstract] | ||||||||||||||||||||
Capital contributions to subsidiaries | (67,600) | 0 | (6,000) | |||||||||||||||||
Net cash provided by (used in) investing activities | (67,600) | 0 | (6,000) | |||||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES [Abstract] | ||||||||||||||||||||
Cash dividends paid | (3,493) | (3,184) | (2,926) | |||||||||||||||||
Stock compensation | 253 | 4 | 165 | |||||||||||||||||
Proceeds from issuance of common stock | 75,471 | (51) | 12,718 | |||||||||||||||||
Proceeds from exercise of stock options | 210 | 2,376 | 2,548 | |||||||||||||||||
Other, net | 0 | 0 | (38) | |||||||||||||||||
Net cash provided by (used in) financing activities | 72,441 | (855) | 12,467 | |||||||||||||||||
Net change in cash and cash equivalents | 4,841 | (1,947) | 5,281 | |||||||||||||||||
CASH AND CASH EQUIVALENTS [Abstract] | ||||||||||||||||||||
Cash and cash equivalents at beginning of year | $ 9,439 | $ 11,386 | $ 6,105 | 9,439 | 11,386 | 6,105 | ||||||||||||||
Cash and cash equivalents at end of year | $ 14,280 | $ 9,439 | $ 11,386 | $ 14,280 | $ 9,439 | $ 11,386 | ||||||||||||||
[1] | Basel III revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio. Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021. The capital ratios were determined using the Basel III capital rules that became effective on January 1, 2015. |
SELECTED QUARTERLY FINANCIAL 77
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||
Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2013 | Sep. 30, 2013 | Jun. 30, 2013 | Mar. 31, 2013 | Dec. 31, 2012 | Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2013 | |
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) [Abstract] | |||||||||||||||
Interest income | $ 16,363 | $ 15,254 | $ 15,758 | $ 14,232 | $ 12,869 | $ 12,566 | $ 12,063 | $ 11,162 | $ 9,803 | $ 9,825 | $ 9,718 | $ 9,630 | |||
Interest expense | 660 | 593 | 473 | 661 | 567 | 638 | 544 | 649 | 642 | 666 | 813 | 833 | $ 2,387 | $ 2,398 | $ 2,954 |
Net interest income | 15,703 | 14,661 | 15,285 | 13,571 | 12,302 | 11,928 | 11,519 | 10,513 | 9,161 | 9,159 | 8,905 | 8,797 | 59,220 | 46,262 | 36,022 |
Provision (recovery) for loan losses | 124 | 700 | 593 | 48 | 550 | 300 | 300 | 0 | 300 | 0 | (300) | 0 | 1,465 | 1,150 | 0 |
Net income (loss) | $ 4,639 | $ 4,640 | $ 5,181 | $ 3,595 | $ 3,363 | $ 4,204 | $ 4,144 | $ 4,002 | $ 3,474 | $ 3,672 | $ 3,147 | $ 3,125 | $ 18,055 | $ 15,713 | $ 13,418 |
Earnings (loss) per common and common equivalent share [Abstract] | |||||||||||||||
Basic (in dollars per share) | $ 0.64 | $ 0.67 | $ 0.79 | $ 0.58 | $ 0.54 | $ 0.69 | $ 0.68 | $ 0.66 | $ 0.59 | $ 0.67 | $ 0.57 | $ 0.57 | $ 2.68 | $ 2.57 | $ 2.40 |
Diluted (in dollars per share) | 0.64 | 0.66 | 0.78 | 0.58 | 0.53 | 0.68 | 0.67 | 0.65 | 0.58 | 0.66 | 0.57 | 0.57 | $ 2.66 | $ 2.53 | $ 2.38 |
Dividend declared per share (in dollars per share) | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 | $ 0.13 |
FAIR VALUES OF FINANCIAL INST78
FAIR VALUES OF FINANCIAL INSTRUMENTS, Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Transfers between levels of fair value hierarchy | $ 0 | $ 0 |
Available-for-sale Securities [Abstract] | ||
Total debt securities | 576,583 | 657,870 |
Total securities | 1,256,087 | 1,140,216 |
Held-to-maturity Securities [Abstract] | ||
Total securities | 346,847 | 279,312 |
Level 1 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities | 914 | 825 |
Held-to-maturity Securities [Abstract] | ||
Total 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 [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 2 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities | 1,255,173 | 1,139,391 |
Held-to-maturity Securities [Abstract] | ||
Total securities | 346,847 | 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 [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 3 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Total securities | 0 | 0 |
Held-to-maturity Securities [Abstract] | ||
Total securities | 0 | 0 |
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 707,774 | 504,388 |
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 121,385 | 111,254 |
Level 3 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 314,372 | 234,845 |
Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 40,003 | 44,398 |
Recurring [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred and corporate securities | 13,944 | 46,929 |
Small business administration securities | 56,056 | 67,012 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 608,590 | 367,580 |
Mortgage-backed securities | 576,583 | 657,870 |
Total debt securities | 1,255,173 | 1,139,391 |
Common Equities and Mutual Funds, Available-for-Sale | 914 | 825 |
Total securities | 1,256,087 | 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 | 19,413 | 18,980 |
Non-bank qualified obligations of states and political subdivisions | 261,330 | 192,160 |
Mortgage-backed securities | 66,104 | 68,172 |
Total debt securities | 346,847 | 279,312 |
Common equities and mutual funds | 0 | 0 |
Total securities | 346,847 | 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, Available-for-Sale | 914 | 825 |
Total securities | 914 | 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 securities | 0 | 0 |
Recurring [Member] | Level 2 [Member] | ||
Available-for-sale Securities [Abstract] | ||
Trust preferred and corporate securities | 13,944 | 46,929 |
Small business administration securities | 56,056 | 67,012 |
Obligations of states and political subdivisions | 0 | 0 |
Non-bank qualified obligations of states and political subdivisions | 608,590 | 367,580 |
Mortgage-backed securities | 576,583 | 657,870 |
Total debt securities | 1,255,173 | 1,139,391 |
Common Equities and Mutual Funds, Available-for-Sale | 0 | 0 |
Total securities | 1,255,173 | 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 | 19,413 | 18,980 |
Non-bank qualified obligations of states and political subdivisions | 261,330 | 192,160 |
Mortgage-backed securities | 66,104 | 68,172 |
Total debt securities | 346,847 | 279,312 |
Common equities and mutual funds | 0 | 0 |
Total securities | 346,847 | 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, Available-for-Sale | 0 | 0 |
Total 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 securities | 0 | 0 |
Nonrecurring [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 2,543 | 1,167 |
Nonrecurring [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 1,152 | |
Nonrecurring [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 222 | |
Nonrecurring [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 663 | 930 |
Nonrecurring [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 1,880 | |
Nonrecurring [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 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 | |
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 | |
Nonrecurring [Member] | Level 1 [Member] | Commercial and Multi-Family Real Estate [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 | |
Nonrecurring [Member] | Level 2 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | 0 |
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 0 | |
Nonrecurring [Member] | Level 2 [Member] | Commercial and Multi-Family Real Estate [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 | |
Nonrecurring [Member] | Level 3 [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 2,543 | 1,167 |
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 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 | 222 | |
Nonrecurring [Member] | Level 3 [Member] | Commercial and Multi-Family Real Estate [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | 663 | 930 |
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating Loans [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | $ 1,880 | |
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member] | ||
Fair value of assets measured on non-recurring basis [Abstract] | ||
Fair value | $ 15 |
FAIR VALUES OF FINANCIAL INST79
FAIR VALUES OF FINANCIAL INSTRUMENTS, Quantitative Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Sep. 30, 2015 | Sep. 30, 2014 | ||
Minimum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Range of estimated selling cost (in hundredths) | 4.00% | ||
Maximum [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Range of estimated selling cost (in hundredths) | 10.00% | ||
Level 3 [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value | $ 707,774 | $ 504,388 | |
Impaired Loans [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value | $ 2,543 | 1,152 | |
Valuation techniques | [1] | Appraised values | |
Foreclosed Assets [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member] | |||
Fair Value Inputs, Assets, Quantitative Information [Line Items] | |||
Fair value | $ 0 | $ 15 | |
Valuation techniques | [1] | Appraised values | |
[1] | The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs in a range of 4% to 10%. |
FAIR VALUES OF FINANCIAL INST80
FAIR VALUES OF FINANCIAL INSTRUMENTS, Balance Sheet Grouping (Details) - USD ($) $ in Thousands | Sep. 30, 2015 | Sep. 30, 2014 |
Financial assets [Abstract] | ||
Securities available for sale | $ 1,256,087 | $ 1,140,216 |
Securities held to maturity | 346,847 | 279,312 |
Level 1 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 27,658 | 29,832 |
Securities available for sale | 914 | 825 |
Securities held to maturity | 0 | 0 |
Total securities | 914 | |
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 13,352 | 11,222 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 1,369,672 | 1,126,715 |
Interest bearing demand deposits, savings, and money markets | 115,204 | 105,273 |
Certificates of deposit | 0 | 0 |
Total deposits | 1,484,876 | 1,231,988 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal funds purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 272 | 318 |
Level 2 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 1,255,173 | 1,139,391 |
Securities held to maturity | 346,847 | 279,312 |
Total securities | 1,602,020 | |
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Federal Home Loan Bank stock | 24,410 | 21,245 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 91,304 | 134,746 |
Total deposits | 91,304 | 134,746 |
Advances from Federal Home Loan Bank | 8,630 | 8,789 |
Federal funds purchased | 540,000 | 470,000 |
Securities sold under agreements to repurchase | 4,007 | 10,414 |
Subordinated debentures | 10,416 | 10,415 |
Accrued interest payable | 0 | 0 |
Level 3 [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 0 | 0 |
Securities available for sale | 0 | 0 |
Securities held to maturity | 0 | 0 |
Total securities | 0 | |
Loans receivable: [Abstract] | ||
Total loans receivable | 707,774 | 504,388 |
Federal Home Loan Bank stock | 0 | 0 |
Accrued interest receivable | 0 | 0 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 0 | 0 |
Interest bearing demand deposits, savings, and money markets | 0 | 0 |
Certificates of deposit | 0 | 0 |
Total deposits | 0 | 0 |
Advances from Federal Home Loan Bank | 0 | 0 |
Federal funds purchased | 0 | 0 |
Securities sold under agreements to repurchase | 0 | 0 |
Subordinated debentures | 0 | 0 |
Accrued interest payable | 0 | 0 |
Carrying Amount [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 27,658 | 29,832 |
Securities available for sale | 1,256,087 | 1,140,216 |
Securities held to maturity | 345,744 | 282,933 |
Total securities | 1,601,831 | |
Loans receivable: [Abstract] | ||
Total loans receivable | 713,087 | 499,201 |
Federal Home Loan Bank stock | 24,410 | 21,245 |
Accrued interest receivable | 13,352 | 11,222 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 1,449,101 | 1,126,715 |
Interest bearing demand deposits, savings, and money markets | 117,262 | 105,273 |
Certificates of deposit | 91,171 | 134,553 |
Total deposits | 1,657,534 | 1,366,541 |
Advances from Federal Home Loan Bank | 7,000 | 7,000 |
Federal funds purchased | 540,000 | 470,000 |
Securities sold under agreements to repurchase | 4,007 | 10,411 |
Subordinated debentures | 10,310 | 10,310 |
Accrued interest payable | 272 | 318 |
Estimated Fair Value [Member] | ||
Financial assets [Abstract] | ||
Cash and cash equivalents | 27,658 | 29,832 |
Securities available for sale | 1,256,087 | 1,140,216 |
Securities held to maturity | 346,847 | 279,312 |
Total securities | 1,602,934 | |
Loans receivable: [Abstract] | ||
Total loans receivable | 707,774 | 504,388 |
Federal Home Loan Bank stock | 24,410 | 21,245 |
Accrued interest receivable | 13,352 | 11,222 |
Financial liabilities [Abstract] | ||
Noninterest bearing demand deposits | 1,369,672 | 1,126,715 |
Interest bearing demand deposits, savings, and money markets | 115,204 | 105,273 |
Certificates of deposit | 91,304 | 134,746 |
Total deposits | 1,576,180 | 1,366,734 |
Advances from Federal Home Loan Bank | 8,630 | 8,789 |
Federal funds purchased | 540,000 | 470,000 |
Securities sold under agreements to repurchase | 4,007 | 10,414 |
Subordinated debentures | 10,416 | 10,415 |
Accrued interest payable | 272 | 318 |
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 121,385 | 111,254 |
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 125,021 | 116,395 |
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 121,385 | 111,254 |
Commercial and Multifamily Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial and Multifamily Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial and Multifamily Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 314,372 | 234,845 |
Commercial and Multifamily Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 310,199 | 224,302 |
Commercial and Multifamily Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 314,372 | 234,845 |
Agricultural Real Estate Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Real Estate Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 66,682 | 58,651 |
Agricultural Real Estate Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 64,316 | 56,071 |
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 66,682 | 58,651 |
Consumer Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Consumer Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Consumer Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 33,504 | 29,580 |
Consumer Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 33,527 | 29,329 |
Consumer Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 33,504 | 29,580 |
Commercial Operating Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Operating Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Commercial Operating Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 23,245 | 25,660 |
Commercial Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 29,893 | 30,846 |
Commercial Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 23,245 | 25,660 |
Agricultural Operating Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | 0 |
Agricultural Operating Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 40,003 | 44,398 |
Agricultural Operating Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 43,626 | 42,258 |
Agricultural Operating Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 40,003 | $ 44,398 |
Premium Finance Loans [Member] | Level 1 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | |
Premium Finance Loans [Member] | Level 2 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 0 | |
Premium Finance Loans [Member] | Level 3 [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 108,583 | |
Premium Finance Loans [Member] | Carrying Amount [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | 106,505 | |
Premium Finance Loans [Member] | Estimated Fair Value [Member] | ||
Loans receivable: [Abstract] | ||
Total loans receivable | $ 108,583 |
GOODWILL AND INTANGIBLE ASSET81
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Sep. 30, 2015 | Sep. 30, 2014 | Sep. 30, 2015 | Sep. 08, 2015 | Dec. 02, 2014 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 0 | $ 0 | $ 36,928 | ||
Amortizable intangible assets [Abstract] | |||||
Balance, beginning of period | 0 | 0 | |||
Acquisitions during the period | 36,928 | 0 | |||
Write-offs during the period | 0 | 0 | |||
Balance, end of period | 36,928 | 0 | |||
Intangible Assets [Roll Forward] | |||||
Balance, end of period | 33,577 | ||||
Total [Roll Forward] | |||||
Balance, beginning of period | 2,588 | 2,339 | |||
Acquisitions during the period | 32,685 | 331 | |||
Amortization during the period | (1,635) | (78) | |||
Write-offs during the period | (61) | (4) | |||
Balance, end of period | 33,577 | 2,588 | |||
Anticipated intangible amortization [Abstract] | |||||
2,016 | 4,819 | ||||
2,017 | 4,116 | ||||
2,018 | 3,517 | ||||
2,019 | 3,001 | ||||
2,020 | 2,598 | ||||
Thereafter | 15,526 | ||||
Total anticipated intangible amortization | 33,577 | 33,577 | |||
AFS/IBEX Financial Services Inc [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 11,578 | ||||
Refund Advantage [Member] | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 25,351 | ||||
Trademark [Member] | |||||
Intangible Assets [Roll Forward] | |||||
Balance, beginning of period | 0 | 0 | |||
Acquisitions during the period | 5,490 | 0 | |||
Amortization during the period | (51) | 0 | |||
Write-offs during the period | 0 | 0 | |||
Balance, end of period | 5,439 | 0 | |||
Anticipated intangible amortization [Abstract] | |||||
Total anticipated intangible amortization | $ 0 | 0 | 5,439 | ||
Trademark [Member] | AFS/IBEX Financial Services Inc [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 540 | ||||
Book Amortization Period | 15 years | ||||
Method | Straight Line | ||||
Trademark [Member] | Refund Advantage [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 4,950 | ||||
Book Amortization Period | 15 years | ||||
Method | Straight Line | ||||
Non-Compete [Member] | |||||
Intangible Assets [Roll Forward] | |||||
Balance, beginning of period | $ 0 | 0 | |||
Acquisitions during the period | 300 | 0 | |||
Amortization during the period | (73) | 0 | |||
Write-offs during the period | 0 | 0 | |||
Balance, end of period | 227 | 0 | |||
Anticipated intangible amortization [Abstract] | |||||
Total anticipated intangible amortization | $ 0 | 0 | 227 | ||
Non-Compete [Member] | AFS/IBEX Financial Services Inc [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 260 | ||||
Book Amortization Period | 3 years | ||||
Method | Straight Line | ||||
Non-Compete [Member] | Refund Advantage [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 40 | ||||
Book Amortization Period | 3 years | ||||
Method | Straight Line | ||||
Customer Relationships [Member] | |||||
Intangible Assets [Roll Forward] | |||||
Balance, beginning of period | $ 0 | 0 | |||
Acquisitions during the period | 26,040 | 0 | |||
Amortization during the period | (1,229) | 0 | |||
Write-offs during the period | 0 | 0 | |||
Balance, end of period | 24,811 | 0 | |||
Anticipated intangible amortization [Abstract] | |||||
Total anticipated intangible amortization | $ 0 | 0 | 24,811 | ||
Customer Relationships [Member] | AFS/IBEX Financial Services Inc [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 7,240 | ||||
Book Amortization Period | 30 years | ||||
Method | Accelerated | ||||
Customer Relationships [Member] | Refund Advantage [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 18,800 | ||||
Method | Accelerated | ||||
Customer Relationships [Member] | Refund Advantage [Member] | Minimum [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Book Amortization Period | 12 years | ||||
Customer Relationships [Member] | Refund Advantage [Member] | Maximum [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Book Amortization Period | 20 years | ||||
Other [Member] | |||||
Intangible Assets [Roll Forward] | |||||
Balance, beginning of period | $ 2,588 | 2,339 | |||
Acquisitions during the period | 855 | 331 | |||
Amortization during the period | (282) | (78) | |||
Write-offs during the period | (61) | (4) | |||
Balance, end of period | 3,100 | 2,588 | |||
Anticipated intangible amortization [Abstract] | |||||
Total anticipated intangible amortization | $ 2,588 | $ 2,339 | 3,100 | ||
Other [Member] | AFS/IBEX Financial Services Inc [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | 173 | ||||
Method | Straight Line | ||||
Other [Member] | Refund Advantage [Member] | |||||
Amortizable intangible assets [Abstract] | |||||
Amount | $ 329 | ||||
Method | Straight Line |