META FINANCIAL GROUP INC, 10-K filed on 11/30/2020
Annual Report
v3.20.2
Cover Page - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2020
Nov. 23, 2020
Mar. 31, 2020
Cover [Abstract]      
Document Type 10-K    
Document Annual Report true    
Document Period End Date Sep. 30, 2020    
Current Fiscal Year End Date --09-30    
Document Transition Report false    
Entity File Number 0-22140    
Entity Registrant Name META FINANCIAL GROUP INC    
Entity Incorporation, State or Country Code DE    
Entity Tax Identification Number 42-1406262    
Entity Address, Address Line One 5501 South Broadband Lane    
Entity Address, City or Town Sioux Falls    
Entity Address, State or Province SD    
Entity Address, Postal Zip Code 57108    
City Area Code 605    
Local Phone Number 782-1767    
Title of 12(b) Security Common Stock, $.01 par value    
Trading Symbol CASH    
Security Exchange Name NASDAQ    
Entity Well-known Seasoned Issuer Yes    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Interactive Data Current Yes    
Entity Filer Category Large Accelerated Filer    
Entity Small Business false    
Entity Emerging Growth Company false    
ICFR Auditor Attestation Flag true    
Entity Shell Company false    
Entity Public Float     $ 693.1
Entity Common Stock, Shares Outstanding (in shares)   33,446,654  
Entity Central Index Key 0000907471    
Document Fiscal Year Focus 2020    
Document Fiscal Period Focus FY    
Amendment Flag false    
Documents Incorporated by Reference
DOCUMENTS INCORPORATED BY REFERENCE
 
PART III of Form 10-K -- Portions of the Proxy Statement for the Annual Meeting of Stockholders to be held February 23, 2021 are incorporated by reference into Part III of this report.
    
v3.20.2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
ASSETS    
Cash and cash equivalents $ 427,367 $ 126,545
Investment securities available for sale, at fair value 814,495 889,947
Mortgage-backed securities available for sale, at fair value 453,607 382,546
Investment securities held to maturity, at cost 87,183 127,582
Mortgage-backed securities held to maturity, at cost 5,427 7,182
Loans held for sale 183,577 148,777
Total loans and leases 3,322,765 3,658,847
Allowance for loan and lease losses (56,188) (29,149)
Federal Reserve Bank and Federal Home Loan Bank stocks, at cost 27,138 30,916
Accrued interest receivable 16,628 20,400
Premises, furniture, and equipment, net 41,608 45,932
Rental equipment, net 205,964 208,537
Bank-owned life insurance 92,315 89,827
Foreclosed real estate and repossessed assets, net 9,957 29,494
Goodwill 309,505 309,505
Intangible assets 41,692 52,810
Prepaid assets 8,328 9,476
Deferred taxes, net 17,723 18,884
Other assets 82,983 54,832
Total assets 6,092,074 6,182,890
Deposits:    
Noninterest-bearing checking 4,356,630 2,358,010
Interest-bearing checking 157,571 185,768
Savings deposits 47,866 49,773
Money market deposits 48,494 76,911
Time certificates of deposit 20,223 109,275
Wholesale deposits 348,416 1,557,268
Total deposits 4,979,200 4,337,005
Short-term borrowings 0 646,019
Long-term borrowings 98,224 215,838
Accrued interest payable 1,923 9,414
Accrued expenses and other liabilities 165,419 130,656
Total liabilities 5,244,766 5,338,932
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued, none outstanding at September 30, 2020 and 2019, respectively 0 0
Common stock 344 378
Additional paid-in capital 594,569 580,826
Retained earnings 234,927 252,813
Accumulated other comprehensive income 17,542 6,339
Treasury stock, at cost, 118,274 and 14,444 common shares at September 30, 2020 and 2019, respectively (3,677) (445)
Total equity attributable to parent 843,705 839,911
Noncontrolling interest 3,603 4,047
Total stockholders' equity 847,308 843,958
Total liabilities and stockholders’ equity 6,092,074 6,182,890
Nonvoting Common Stock    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
v3.20.2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares
Sep. 30, 2020
Sep. 30, 2019
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) 90,000,000 90,000,000
Common stock, shares issued (in shares) 34,479,164 37,821,508
Common stock, shares outstanding (in shares) 34,360,890 37,807,064
Treasury stock (in shares) 118,274 14,444
Nonvoting Common Stock    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 3,000,000 3,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.20.2
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Interest and dividend income:      
Loans and leases, including fees $ 261,128 $ 274,528 $ 98,475
Mortgage-backed securities 9,028 11,390 15,479
Other investments 22,685 39,811 44,580
Total interest and dividend income 292,841 325,729 158,534
Interest expense:      
Deposits 22,616 46,648 15,163
FHLB advances and other borrowings 11,187 14,874 12,822
Total interest expense 33,803 61,522 27,985
Net interest income 259,038 264,207 130,549
Provision for loan and lease losses 64,776 55,650 29,432
Net interest income after provision for loan and lease losses 194,262 208,557 101,117
Noninterest income:      
Gain (loss) on sale of securities available for sale, net (Includes $51, $729, and $(8,177) reclassified from accumulated other comprehensive income (loss) for net gain (loss) on securities available for sale for the fiscal years ended September 30, 2020, 2019 and 2018, respectively) 51 729 (8,177)
Gain on divestitures 19,275 0 0
Gain on sale of other 4,425 7,831 561
Other income 14,641 9,975 8,329
Total noninterest income 239,794 222,545 184,525
Noninterest expense:      
Compensation and benefits 136,247 155,811 109,044
Refund transfer product expense 7,644 7,526 11,750
Tax advance product expense 2,723 3,102 1,817
Card processing 25,956 23,677 26,283
Occupancy and equipment expense 26,995 28,071 19,740
Operating lease equipment depreciation 32,831 26,181 5,386
Legal and consulting 20,858 17,310 15,064
Intangible amortization 10,997 17,711 9,641
Impairment expense 1,982 9,660 18
Other expense 52,818 44,111 29,489
Total noninterest expense 319,051 333,160 228,232
Income before income tax expense 115,005 97,942 57,410
Income tax expense (benefit) (Includes $13, $184, and $(2,330) reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2020, 2019 and 2018, respectively) 5,661 (3,374) 5,117
Net income before noncontrolling interest 109,344 101,316 52,293
Net income attributable to noncontrolling interest 4,624 4,312 673
Net income attributable to parent $ 104,720 $ 97,004 $ 51,620
Earnings per common share:      
Basic (in dollars per share) $ 2.94 $ 2.49 $ 1.68
Diluted (in dollars per share) $ 2.94 $ 2.49 $ 1.67
Refund transfer product fees      
Noninterest income:      
Noninterest income: $ 36,061 $ 39,198 $ 41,879
Tax advance product fees      
Noninterest income:      
Noninterest income: 31,826 34,687 35,703
Total noninterest income 31,826 34,687  
Payment card and deposit fees      
Noninterest income:      
Noninterest income: 87,379 87,130 97,920
Total noninterest income 87,379 87,130  
Other bank and deposit fees      
Noninterest income:      
Noninterest income: 1,310 1,942 977
Total noninterest income 1,310 1,942  
Rental income      
Noninterest income:      
Noninterest income: 44,826 41,053 $ 7,333
Total noninterest income $ 44,826 $ 41,053  
v3.20.2
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Income Statement [Abstract]      
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) $ 51 $ 729 $ (8,177)
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) $ 13 $ 184 $ (2,330)
v3.20.2
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Statement of Comprehensive Income [Abstract]      
Net income before noncontrolling interest $ 109,344 $ 101,316 $ 52,293
Other comprehensive income (loss):      
Change in net unrealized gain (loss) on debt securities 15,164 53,739 (66,053)
(Gain) loss realized in net income (51) (729) 8,177
Total available for sale adjustment 15,113 53,010 (57,876)
Unrealized gain (loss) on currency translation (101) (122) 3
Deferred income tax effect 3,809 12,963 (15,596)
Total other comprehensive income (loss) 11,203 39,925 (42,277)
Total comprehensive income 120,547 141,241 10,016
Total comprehensive income attributable to noncontrolling interest 4,624 4,312 673
Comprehensive income attributable to parent $ 115,923 $ 136,929 $ 9,343
v3.20.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Adjustment
 Total Meta Stockholders’ Equity
 Total Meta Stockholders’ Equity
Adjustment
      Common Stock
    Additional Paid-in Capital
      Retained Earnings
      Retained Earnings
Adjustment
Accumulated Other Comprehensive Income (Loss), Net of Tax
Accumulated Other Comprehensive Income (Loss), Net of Tax
Adjustment
      Treasury Stock
Non-controlling Interest
Balance at the beginning of the period at Sep. 30, 2017 $ 434,496   $ 434,496   $ 288 $ 258,144 $ 167,164   $ 9,166   $ (266) $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Cash dividends declared on common stock (5,736)   (5,736)       (5,736)          
Issuance of common shares due to exercise of stock options 148   148   1 147            
Issuance of common shares due to restricted stock 4   4   4              
Issuance of common shares due to ESOP 1,606   1,606   1 1,605            
Issuance of common shares due to acquisition 295,766   295,766   99 295,667            
Shares repurchased (2,598)   (2,598)     (875)         (1,723)  
Stock compensation 11,123   11,123     11,123            
Total other comprehensive income (42,277)   (42,277)           (42,277)      
Net income before noncontrolling interest 52,293   51,620       51,620         673
Noncontrolling interests due to acquisition 3,167                     3,167
Net investment by (distribution to) noncontrolling interests (266)                     (266)
Balance at the end of the period at Sep. 30, 2018 747,726   744,152   393 565,811 213,048   (33,111)   (1,989) 3,574
Balance at the end of the period (Accounting Standards Update 2014-09) at Sep. 30, 2018   $ 1,502   $ 1,502       $ 1,502        
Balance at the end of the period (Accounting Standards Update 2016-01) at Sep. 30, 2018               $ 475   $ (475)    
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Cash dividends declared on common stock (7,760)   (7,760)       (7,760)          
Issuance of common shares due to exercise of stock options 44   44   0 44            
Issuance of common shares due to restricted stock 3   3   3              
Issuance of common shares due to ESOP 2,011   2,011   0 2,011            
Shares repurchased (49,912)   (49,912)   (18) 18 (46,500)       (3,412)  
Retirement of treasury stock             (4,956)       4,956  
Stock compensation 12,942   12,942     12,942            
Total other comprehensive income 39,925   39,925           39,925      
Net income before noncontrolling interest 101,316   97,004       97,004         4,312
Net investment by (distribution to) noncontrolling interests (3,839)                     (3,839)
Balance at the end of the period at Sep. 30, 2019 843,958   839,911   378 580,826 252,813   6,339   (445) 4,047
Increase (Decrease) in Stockholders' Equity [Roll Forward]                        
Cash dividends declared on common stock (7,100)   (7,100)       (7,100)          
Issuance of common shares due to exercise of stock options 266   266   1 265            
Issuance of common shares due to restricted stock 2   2   2              
Issuance of common shares due to ESOP 3,220   3,220   1 3,219            
Shares repurchased (118,738)   (118,738)   (38) 38 (115,506)       (3,232)  
Stock compensation 10,221   10,221     10,221            
Total other comprehensive income 11,203   11,203           11,203      
Net income before noncontrolling interest 109,344   104,720       104,720         4,624
Net investment by (distribution to) noncontrolling interests (5,068)                     (5,068)
Balance at the end of the period at Sep. 30, 2020 $ 847,308   $ 843,705   $ 344 $ 594,569 $ 234,927   $ 17,542   $ (3,677) $ 3,603
v3.20.2
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Statement of Stockholders' Equity [Abstract]      
Cash dividends declared on common stock (in dollars per share) $ 0.20 $ 0.20 $ 0.18
v3.20.2
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Cash flows from operating activities:      
Net income before noncontrolling interest $ 109,344,000 $ 101,316,000 $ 52,293,000
Adjustments to reconcile net income to net cash provided by (used in) operating activities:      
Depreciation, amortization and accretion, net 60,745,000 55,149,000 37,722,000
Stock compensation 10,221,000 12,942,000 11,123,000
Provision (recovery):      
Loan and lease losses 64,776,000 55,650,000 29,432,000
Deferred taxes (2,347,000) (14,301,000) 6,530,000
Loans held for sale:      
Originations (98,798,000) (171,260,000) (1,691,000)
Purchases 0 (15,443,000) 0
Proceeds from sales 319,123,000 125,357,000 17,621,000
Net change 22,855,000 31,819,000 952,000
Fair value adjustment of foreclosed real estate 568,000 139,000 29,000
Net realized (gain) loss:      
Other assets 361,000 (89,000) 127,000
Divestitures (19,275,000) 0 0
Foreclosed real estate and repossessed assets 4,960,000 278,000 19,000
Securities available for sale, net (51,000) (729,000) 8,177,000
Loans held for sale (5,389,000) (5,089,000) (181,000)
Lease receivable and equipment (4,335,000) (2,930,000) (526,000)
Net change:      
Other assets 1,524,000 (5,427,000) 2,633,000
Deposits held for sale 1,535,000 0 0
Accrued interest payable (7,491,000) 1,620,000 1,933,000
Accrued expenses and other liabilities 8,643,000 16,623,000 (28,610,000)
Accrued interest receivable 2,050,000 1,616,000 2,745,000
Change in bank-owned life insurance value (2,488,000) (2,534,000) (2,591,000)
Impairment on assets held for sale 242,000 0 0
Impairment on rental equipment 447,000 6,194,000 0
Impairment of intangibles 0 111,000 18,000
Net cash provided by operating activities 467,220,000 191,012,000 137,755,000
Securities available for sale:      
Purchases (229,326,000) (299,269,000) (626,575,000)
Proceeds from sales 4,904,000 755,616,000 596,758,000
Proceeds from maturities and principal repayments 237,254,000 164,044,000 162,118,000
Securities held to maturity:      
Proceeds from maturities and principal repayments 40,017,000 35,025,000 40,525,000
Loans and leases:      
Purchases (151,435,000) (262,622,000) (165,670,000)
Proceeds from sales 9,991,000 13,838,000 22,611,000
Net change (100,508,000) (591,785,000) (493,381,000)
Proceeds from sales of foreclosed real estate and repossessed assets 23,992,000 1,905,000 244,000
Federal Reserve Bank and Federal Home Loan Bank stock:      
Purchases (472,000,000) (878,316,000) (961,124,000)
Redemption 475,778,000 870,800,000 998,880,000
Rental equipment:      
Purchases (53,637,000) (144,432,000) (1,848,000)
Proceeds from sales 14,692,000 8,301,000 2,362,000
Net change 2,623,000 1,567,000 (15,000,000)
Premises, furniture, and equipment:      
Purchases (12,266,000) (13,971,000) (8,542,000)
Proceeds from sales 107,000 101,000 0
Proceeds from divestitures 3,498,000 0 0
Cash paid for acquisitions 0 0 (6,000)
Cash received upon acquisitions 0 0 58,858,000
Net cash (used in) investing activities (206,316,000) (339,198,000) (389,790,000)
Cash flows from financing activities:      
Checking, savings, and money market deposits 2,229,075,000 48,897,000 7,000
Time certificates of deposit (89,062,000) (167,044,000) (143,096,000)
Wholesale deposits (1,208,885,000) 26,014,000 229,982,000
FHLB and other borrowings (275,000,000) 275,000,000 (415,000,000)
Federal funds (477,000,000) 55,000,000 (565,000,000)
Securities sold under agreements to repurchase (4,019,000) 325,000 1,222,000
Short-term borrowings 0 0 (11,642,000)
Distribution to noncontrolling interests (5,068,000) (3,839,000) (266,000)
Proceeds from other liabilities 1,633,000 7,916,000 0
Other liabilities (7,568,000) (11,691,000) (4,888,000)
Capital lease obligations (1,737,000) (88,000) (62,000)
Cash dividends paid (7,100,000) (7,760,000) (5,736,000)
Issuance of common stock due to ESOP 3,220,000 2,011,000 1,606,000
Issuance of common stock due to restricted stock 2,000 3,000 4,000
Proceeds from exercise of stock options and issuance of common stock 266,000 44,000 148,000
Shares repurchased (118,738,000) (49,912,000) (2,598,000)
Redemption of long-term borrowings 0 0 (258,000)
Net cash provided by (used in) financing activities 40,019,000 174,876,000 (915,577,000)
Effect of exchange rate changes on cash (101,000) (122,000) 3,000
Net change in cash and cash equivalents 300,822,000 26,568,000 (1,167,609,000)
Cash and cash equivalents at beginning of fiscal year 126,545,000 99,977,000 1,267,586,000
Cash and cash equivalents at end of fiscal year 427,367,000 126,545,000 99,977,000
Supplemental disclosure of cash flow information      
Interest 41,294,000 59,902,000 33,499,000
Income taxes 6,223,000 (2,821,000) 8,946,000
Franchise taxes 281,000 223,000 160,000
Other taxes 535,000 557,000 206,000
Transfers      
Securities from held to maturity to available for sale 0 0 346,771,000
Loans and leases to foreclosed real estate and repossessed assets 9,983,000 0 30,451,000
Loans and leases to rental equipment 2,134,000 0 9,000
Rental equipment to loans and leases 8,924,000 210,000 993,000
Loans and leases to held for sale 542,101,000 99,992,000 15,068,000
Other assets to held for sale 7,858,000 0 0
Deposits to held for sale 288,975,000 0 0
Recognition of operating lease ROU assets, net of remeasurements 28,666,000 0 0
Stock issued for acquisitions 0 0 295,767,000
Purchases - available for sale 0 0 1,430,000
Short- and long-term borrowings transferred from other liabilities $ 0 $ 20,026,000 $ 0
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of Meta Financial Group, Inc. (the “Company”), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include MetaBank (the “Bank”), a national bank whose primary federal regulator is the Office of the Comptroller of the Currency (the "OCC"), and Meta Capital, LLC, a wholly-owned service corporation subsidiary of MetaBank which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. 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, and Crestmark Capital Trust I, which was acquired from the Crestmark Acquisition in August 2018. The Trust and Crestmark Capital Trust I are not included in the Consolidated Financial Statements of the Company. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements.

Variable Interest Entities
VIEs are defined by contractual ownership or other interests that change with fluctuations in the VIE's net asset value. The primary beneficiary is the entity which has both: (1) the power to direct the activities of the VIE that most significantly impacts the VIE’s economic performance, and (2) the obligation to absorb losses or receive benefits of the entity that could potentially be significant to the VIE. To determine whether or not a variable interest the Company holds could potentially be significant to the VIE, the Company considers both qualitative and quantitative factors regarding the nature, size and form of the Company's involvement with the VIE. Further, the Company assesses whether or not the Company is the primary beneficiary of a VIE on an ongoing basis.

Crestmark Capital Trust I qualifies as a VIE for which the Company is not the primary beneficiary. Consequently, the accounts of that entity are not consolidated in the Company’s Financial Statements.

As a result of the Crestmark Acquisition, the Company acquired existing membership interests of five joint venture limited liability companies (the "LLCs"). The Company holds 80% of the membership interests in each of the five LLC entities, which offer commercial lending and other financing arrangements. In connection with these LLCs, the Company exclusively provides funding for each entity's activities. The Company determined it is the primary beneficiary of all five LLCs as it has the managing power under the terms of each of the LLC operating agreements. Results of the five LLCs are reflected in the Company's September 30, 2020 Consolidated Financial Statements and are summarized below. The assets recognized as a result of consolidating the LLCs are the property of the LLCs and are not available for any other purpose.

(Dollars in Thousands)September 30, 2020
Cash and cash equivalents$1,480 
Loans and leases124,869 
Allowance for loan and lease losses(557)
Accrued interest receivable724 
Rental equipment, net— 
Foreclosed real estate and repossessed assets952 
Other assets4,006 
Total assets131,474 
Accrued expenses and other liabilities2,132 
Noncontrolling interest3,603 
Net assets less noncontrolling interest$125,739 
Amounts for noncontrolling interests reflect the proportionate share of membership interest (equity) and net income attributable to the holders of minority membership interest in the following entities:

•Capital Equipment Solutions, LLC (“CES”) - CES engages in the business of providing equipment financing term loans.

•CM Help, LLC - CM Help provides flexible patient loan programs to hospitals and patient clients of hospitals as a financing alternative for the self-pay and co-pay portions of patients’ hospital expenses.

•CM Southgate II, LLC - CM Southgate II engages in the business of acquiring fleet leases and semi-trailer/tractor loans and leases.

•CM Sterling, LLC - CM Sterling engages in asset-based lending and factoring.

•CM TFS, LLC - CM TFS engages in the business of acquiring equipment financing term loans and leases.

NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
One of the Company's primary sources of revenue 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 revenue for the Company is interest from the purchase or origination of commercial finance loans, consumer finance loans, warehouse finance loans and community banking loans. The Company accepts deposits from customers in the normal course of business on a national basis through its MPS and tax services divisions, and through wholesale funding. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments. See Note 22. Segment Reporting for additional information on the Company's segment reporting.
 
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS
The preparation of Consolidated Financial Statements in conformity with 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 valuation of residual values within lease receivables, allowance for loan and lease losses, the valuation of foreclosed real estate and repossessed assets, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
 
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was zero at September 30, 2020, and $33.9 million at September 30, 2019. 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, 2020, the Company had $2.0 million interest-bearing deposits held at the FHLB and $362.0 million in interest-bearing deposits held at the FRB. At September 30, 2020, the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). See Note 25. Fair Values of Financial Instruments for additional information on fair value of AFS securities. HTM debt securities are measured at amortized cost. The Company classifies the majority of its securities as AFS, which are those the Company may decide to sell if needed for liquidity, asset/liability management, or other reasons. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not hold trading securities at September 30, 2020 or 2019.
 
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 using the level yield method, is included in income as earned. For callable debt securities, any purchase premium is amortized to the first call date while any discount is accreted over the contractual life of the security.

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 2020, 2019 and 2018, there was no other-than-temporary impairment recorded.

Equity Investments
The Company holds marketable equity securities, which have readily determinable fair value, and include common equity and mutual funds. These securities are recorded at fair value with unrealized gains and losses, due to changes in fair value, reflected in earnings. Interest and dividend income from these securities is recognized in interest income. See Note 4. Securities for additional information on marketable equity securities.

The Company also holds non-marketable equity investments that are included in Other Assets in the Company’s Consolidated Financial Statements. The Company generally accounts for these investments under the equity method or the provisions of Accounting Standards Update ("ASU") 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities ("ASU 2016-01"), beginning October 1, 2018. Investments where the Company has significant influence, but not control, over the investee are accounted for under the equity method. Investments where the Company cannot exercise significant influence over the investee are accounted for under ASU 2016-01, which requires such investments to be measured at fair value, with changes in fair value recognized in earnings, unless those investments have no readily determinable fair value. Investments without readily determinable fair value are measured under the measurement alternative, which reflects cost less impairment, with adjustments in value resulting from observable price changes arising from orderly transactions of the same or a similar security from the same issuer ("measurement alternative investments").
The Company reviews for impairment for equity method, fair value and measurement alternative investments and includes an analysis of the facts and circumstances for each investment, expectations of cash flows, capital needs, and viability of its business model. For equity method and fair value investments, the asset carrying value is reduced when the decline in fair value is considered to be other than temporary. For measurement alternative investments, the asset carrying value is reduced when the fair value is less than the carrying value, without the consideration of recovery. There was a $1.3 million impairment recognized on equity method, fair value or measurement alternative investments during the fiscal year ended September 30, 2020.

The Company held the following non-marketable equity investments:

•Equity Method - The Company held equity method investments of $11.0 million within other assets as of September 30, 2020. The Company’s ownership of such investments typically ranges from 5% - 25% of the investee. The Company recognized net earnings from these investments in the amount of $2.6 million within noninterest income for the fiscal year ended September 30, 2020. The Company elected to classify distributions received from equity method investments using the cumulative earnings approach on the Consolidated Statements of Cash Flows.

•Fair Value Method - The Company held equity investments measured at net asset value (NAV) per share (or its equivalent) of $2.8 million as of September 30, 2020 where NAV is considered the fair value practical expedient. These investments are recorded within other assets on the Company’s Consolidated Financial Statements. Fluctuations in fair value are recognized in earnings within noninterest Income.

•Measurement Alternative - The Company held equity investments measured using the measurement alternative under ASU 2016-01 of $12.0 million as of September 30, 2020 within other assets on the Company’s Consolidated Financial Statements. The Company recognized an impairment loss of $1.3 million on such investments during the fiscal year ended September 30, 2020.
 
LOANS HELD FOR SALE ("LHFS")
LHFS include loans retained in the community bank portfolio and commercial loans originated under the guidelines of the SBA or USDA. LHFS are held at the lower of cost or fair value. Generally, LHFS are valued on an aggregate portfolio basis. Any amount by which the cost exceeds fair value is initially recorded as a valuation allowance and subsequently reflected in the gain or loss on sale when sold. At September 30, 2020 and 2019, there was no valuation allowance recorded for LHFS. Gains and losses on LHFS are recorded in noninterest income on the Consolidated Statements of Operations. Loan costs and fees are deferred at origination and are recognized in income at the time of sale. Interest income is calculated based on the note rate of the loan and is recorded as interest income. For loans transferred to LHFS due to change in intent of holding the loans to maturity or for the foreseeable future, such loans are transferred at lower of cost or fair value.
LOANS AND LEASES

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 net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased 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. Unearned income, deferred loan fees and costs, and discounts and premiums are amortized to interest income over the contractual life of the loan using the interest method. The Company generally places Community Banking loans on nonaccrual status when: the full and timely collection of interest or principal becomes uncertain; they are 90 days past due for interest or principal, unless they are both well-secured and in the process of collection; or part of the principal balance has been charged off. The majority of the Company's National Lending loans follow the same nonaccrual policy as Community Banking loans with certain commercial finance, consumer finance and tax service loans not generally being placed on non-accrual status, but instead are charged off when the collection of principal and interest become doubtful. When placed on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and any remaining amortizing of net deferred fees is suspended. Cash collected on these loans is applied to first reduce the carrying value of the loan with any remainder being recognized as interest income. Generally, a loan can return to accrual status when all delinquent interest and principal become current under the terms of the loan agreement and collectability of the remaining principal and interest is no longer doubtful. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates.

For commercial loans, the Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for loans secured by collateral when: management judges the loans to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the loan has been classified as a loss by either the Company's internal loan review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the loan meets a defined number of days past due unless the loan is both well-secured and in the process of collection. For consumer loans, the Company fully charges off or charges down to net realizable value when deemed uncollectible due to bankruptcy or other factors, or meets a defined number of days past due.

The Company generally considers a loan to be impaired when, based on current information and events, it determines that it will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company's impaired loans predominantly include loans on nonaccrual status in the Commercial segment and loans modified in a troubled-debt-restructuring, whether on accrual or nonaccrual status. The Company measures the amount of impairment, if any, based on the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loans effective interest rate. When collateral is the sole source of repayment for the impaired loan, the Company charges down to net realizable value.
As part of the Company’s ongoing risk management practices, management generally 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. Modified loan terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance or other actions intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of the collateral. 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. 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.

LEASES RECEIVABLE
The Company provides various types of commercial lease financing that are classified for accounting purposes as direct financing, sales-type or operating leases. Leases that transfer substantially all of the benefits and risks of ownership to the lessee are classified as direct financing or sales-type leases and are included in loans and leases receivable on the Consolidated Statements of Financial Condition. Direct financing and sales-type leases are carried at the combined present value of future minimum lease payments and lease residual values. The determination of lease classification requires various judgments and estimates by management, including the fair value of equipment at lease inception, useful life of the equipment under lease, lease residual value, and collectability of minimum lease payments.

Sales-type leases generate dealer profit, which is recognized at lease inception by recording lease revenue net of lease cost. Lease revenue consists of the present value of the future minimum lease payments. Lease cost consists of the lease equipment’s book value, less the present value of its residual. Interest income on direct financing and sales-type leases is recognized using methods that approximate a level yield over the fixed, non-cancelable term of the lease. Recognition of interest income is generally discontinued at the time the lease becomes 90 days delinquent, unless the lease is well-secured and in process of collection. Delinquency and past due status is based on the contractual terms of the lease. The Company receives pro rata rent payments for the interim period until the lease contract commences and the fixed, non-cancelable lease term begins. Interim payments are recognized in the month they are earned and are recorded in interest income. Management has policies and procedures in place for the determination of lease classification and review of the related judgments and estimates for all lease financings.

The Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for leases when management judges the lease to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the lease has been classified as a loss by either the Company's internal review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the lease meets a defined number of days past due unless the lease is both well-secured and in the process of collection.

Some lease financings include a residual value component, which represents the estimated fair value of the leased equipment at the expiration of the initial term of the transaction. The estimation of the residual value involves judgments regarding product and technology changes, customer behavior, shifts in supply and demand, and other economic assumptions. The Company reviews residual assumptions at least annually and records impairment, if necessary, which is charged to non-interest expense in the period it becomes known. The Company may purchase and sell minimum lease payments, primarily as a credit risk reduction tool, to third-party financial institutions at fixed rates on a non-recourse basis with its underlying equipment as collateral. For those transactions that achieve sale treatment, the related lease cash flow stream and the non-recourse financing are derecognized. For those transactions that do not achieve sale treatment, the underlying lease remains on the Company’s Consolidated Statements of Financial Condition and non-recourse debt is recorded in the amount of the proceeds received. The Company retains servicing of these leases and bills, collects, and remits funds to the third-party financial institution. Upon default by the lessee, the third-party financial institutions may take control of the underlying collateral which the Company would otherwise retain as residual value.
Leases that do not transfer substantially all benefits and risks of ownership to the lessee are classified as operating leases. Such leased equipment are included in rental equipment on the Consolidated Statements of Financial Condition and are depreciated on a straight-line basis over the term of the lease to its estimated residual value. Depreciation expense is recorded as operating lease equipment depreciation expense within noninterest expense. Operating lease rental income is recognized when it becomes due and is reflected as a component of noninterest income. An allowance for lease losses is not provided on operating leases.

LOAN SERVICING AND TRANSFERS OF FINANCIAL ASSETS
The Company, from time to time, sells loan participations, generally without recourse. The Company also sells commercial SBA and USDA loans to third parties, 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 and records a servicing asset, which is included within other assets on the Consolidated Statements of Financial Condition. At September 30, 2020 and 2019, the Bank was servicing loans for others with aggregate unpaid principal balances of $232.3 million and $175.5 million, respectively. The service fees and ancillary income related to these loans were immaterial.

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.

ALLOWANCE FOR LOAN AND LEASE LOSSES
The allowance for loan and lease losses ("ALLL") represents management’s estimate of probable loan and lease losses that have been incurred as of the date of the Consolidated Financial Statements. The ALLL is increased by a provision for loan and lease 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 or lease is necessarily subjective. Management’s periodic evaluation of the appropriateness of the ALLL is based on the Company’s and peer group’s past loan and lease 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 ALLL for specific problem loan or lease situations, the entire ALLL is available for any loan or lease charge-offs that occur. The ALLL consists of specific and general components.

The specific component of the ALLL relates to impaired loans and leases. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Leases are generally considered impaired if collectability of the remaining minimum lease payments becomes uncertain. Often this is associated with a delay or shortfall in payments of 90 days or more for community banking loans and leases. Non-accrual loans and leases and all TDRs are considered impaired. Impaired loans and leases, 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 certain Community Bank and Commercial Finance loans and leases not considered impaired and is determined based upon both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and leases and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2020 and 2019 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 a specified period of time. The period of time varies by portfolio and ranges from three to seven years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized.

•A three to seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors.

•The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off. The LEP is only applied to the non-classified loan general reserve in the Company's Community Bank portfolio.
 
Qualitative adjustment considerations for the general reserve include considerations of changes in lending and leasing policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan and lease portfolio, changes in lending and leasing management and staff, trending in past due, classified, nonaccrual, and other loan and lease categories, changes in the Company’s loan and lease review system and oversight, changes in collateral and residual values, credit concentration risk, and the regulatory and legal requirements and environment. Beginning in the fiscal 2020 second quarter, additional reserve levels were estimated by increasing qualitative factors due to the unprecedented uncertainty stemming from the COVID-19 pandemic. The additional reserves were primarily estimated for loans and leases that were granted short-term payment deferrals related to financial stress stemming from the COVID-19 pandemic along with other loans and leases within certain industries that were considered higher risk for credit loss.

National Lending portfolios, outside of certain loans and leases in the Commercial Finance portfolio, primarily utilize a general reserve process that mostly uses historical factors related to the specific loan and lease portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are generally written off after a loan becomes past due greater than 210 days for insurance premium finance loans, 180 days for tax and other specialty lending loans, 120 days for consumer credit products and 90 days for other loans. See Note 5. Loans and Leases, Net for further information on the ALLL.

The following are risk characteristics of the Company’s loan and lease portfolio:
Commercial Finance
The Company's commercial finance product lines include term lending, asset based lending, factoring, leasing, insurance premium finance, government guaranteed lending and other commercial finance products offered on a nationwide basis that are subject to adverse market conditions which may impact the borrower’s ability to make repayment on the loan or lease or could cause a decline in the value of the collateral that secures the loan or lease. The loans or leases are primarily made based on the operating cash flows of the borrower and on the underlying collateral provided by the borrower. The cash flows of borrowers may be volatile and the value of the collateral securing these loans and leases may be difficult to measure. Most commercial finance loans and leases are secured by the assets being financed or other business assets such as accounts receivable or inventory. Although the loans and leases are often collateralized by equipment, inventory, accounts receivable, insurance premiums or other business assets, the liquidation of collateral in the event of a borrower default may be an insufficient source of repayment, because accounts receivable may be uncollectible and inventories and equipment may be obsolete or of limited use. The Company attempts to mitigate these risks by adhering to its underwriting policies in evaluating the management of the business and the credit-worthiness of borrowers and guarantors.
Consumer Finance
The Bank designs its credit program relationships with certain desired outcomes. Three high priority outcomes are liquidity, credit protection, and risk retention. The Bank believes the benefits of these outcomes not only support its goals but the goals of the credit program partner as well. The Bank designs its program credit protections in a manner so that the Bank earns a reasonable risk adjusted return, but is protected by certain layers of credit support, similar to what you would find in structured finance. The Bank will hold a sizable portion of the originated asset on its own balance sheet, but retains the flexibility to sell a portion of the originated asset to other interested parties, thereby supporting program liquidity. 

Tax Services
The Bank's tax services division provides short-term taxpayer advance loans. Taxpayers are underwritten to determine eligibility for these unsecured loans. Due to the nature of taxpayer advance loans, it typically takes no more than three e-file cycles (the period of time between scheduled IRS payments) from when the return is accepted by the IRS to collect from the borrower. In the event of default, the Bank has no recourse against the tax consumer. The Bank will charge off the balance of a taxpayer advance loan if there is a balance at the end of the calendar year, or when collection of principal becomes doubtful.

Through its tax services division, the Bank provides short-term electronic return originator ("ERO") advance loans on a nationwide basis. These loans are typically utilized by tax preparers to purchase tax preparation software and to prepare tax office operations for the upcoming tax season. EROs go through an underwriting process to determine eligibility for the unsecured advances. ERO loans are not collateralized. Collection on ERO advances begins once the ERO begins to process refund transfers. Generally, the Bank will charge off the balance of an ERO advance loan if there is a balance at the end of June, or when collection of principal becomes doubtful.

Warehouse Finance
The Bank participates in several asset-backed warehouse lines of credit whereby the Bank is in a senior, secured position as the first out participant. These facilities are primarily collateralized by consumer receivables, with the Bank holding a senior collateral position enhanced by a subordinate party structure.

Community Banking
Effective on February 29, 2020 (the "Closing Date") of the Community Bank division sale to Central Bank, the Company substantially ceased originating loans within its Community Banking loan portfolio. The Company entered a servicing agreement with Central Bank for the retained Community Bank loan portfolio that became effective on the Closing Date. See Note 3. Divestitures for further information related to the Community Banking lending portfolio.

EARNINGS PER COMMON SHARE (“EPS”)
Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. See Note 6. Earnings per Common Share for further information.

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 the Company is the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. The Company primarily uses the straight-line method of depreciation over the estimated useful lives of the assets, which is 39 years for buildings, and range from two years to 15 years for leasehold improvements, and for furniture, fixtures and equipment. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. See Note 7. Premises, Furniture and Equipment, Net for further information.

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.
 
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. The fair value of the real estate owned is based on independent appraisals, real estate brokers’ price opinions, or automated valuation methods, less costs to sell. The fair value of repossessed assets is based on available pricing guides, auction results or price opinions, less costs to sell. 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 and lease losses. Subsequent valuations are periodically performed by management. If the subsequent fair value, less costs to sell, declines to less than the carrying amount of the asset, the shortfall is recognized in the period it becomes known as an impairment in noninterest expense and a valuation allowance is recorded for the asset. Operating expenses of properties are also recorded in noninterest expense. Rental income of properties is recorded in noninterest income.

GOODWILL
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment at a reporting unit level. The Company has determined that its reporting units are one level below the operating segments and distinguish these reporting units based on how the segments and reporting units are managed, taking into consideration the economic characteristics, nature of the products, and customers of the segments and reporting units. The Company performs its impairment evaluation as of September 30 of each fiscal year unless a triggering event occurs that would require an interim impairment evaluation. If the carrying amount of the reporting unit with goodwill exceeds its fair value, goodwill is considered impaired and is written down by the excess carrying value of the reporting unit. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the fiscal years ended September 30, 2020, 2019 or 2018. See Note 10. Goodwill and Intangible Assets for further information.

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. See Note 10. Goodwill and Intangible Assets for further information.

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. See Note 13. Short-Term and Long-Term Borrowings for further information.

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, 2020 and 2019, all shares in the ESOP were allocated. See Note 15. Employee Stock Ownership and Profit Sharing Plans for further information.

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 non-vested (restricted) 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 has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur. See Note 16. Stock Compensation for further information.
INCOME TAXES
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in noninterest income or noninterest expense. The effect on deferred tax assets and liabilities from a change in tax rates is recorded in income tax expense in the Consolidated Statements of Operations in the period in which the enactment date occurs. If current period income tax rates change, the impact on the annual effective income tax rate is applied year to date in the period of enactment. See Note 17. Income Taxes for further information.

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. The reserve for these unfunded commitments is included within Other Liabilities on the Consolidated Statements of Financial Condition.

REVENUE RECOGNITION
Interest revenue from loans, leases, and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan, lease, or investment. Income from service and other customer charges is recognized as earned. Revenue within the Consumer segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. The Company adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers, and related amendments on October 1, 2018 under the cumulative-effect method. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s MPS division. Results for prior periods have not been adjusted and continue to be reported in accordance with the Company’s historical accounting policies. Refer to Note 21. Revenue from Contracts with Customers for additional information.

COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes the change in net unrealized gains and losses on securities AFS, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
 
RELATED PARTY TRANSACTIONS
The Company has disclosed information on its equity investments and relationships with variable interest entities in Note 1. Summary of Significant Accounting Policies.

At September 30, 2020 and 2019, the Company had zero and $5.1 million, respectively, of loans outstanding with individuals deemed under Regulation O to be directors, executive officers and/or employees of the Company.

RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES
Certain prior year amounts have been reclassified to conform to the current year financial statement presentation. These changes and reclassifications did not impact previously reported net income or comprehensive income.
RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
The following ASUs were adopted by the Company during the fiscal year ended September 30, 2020:

ASU 2016-02, Leases (Topic 842) and subsequent related updates (collectively ASU 2016-02) on October 1, 2019, which requires lessees to recognize most leases on their balance sheet. Lessor accounting is largely unchanged. The ASU requires both quantitative and qualitative disclosures regarding key information about lease arrangements from both lessees and lessors. The Company elected the effective date transition method utilizing the adoption date as the first date of application of the revised guidance. As a result, prior period amounts have not been restated. Upon adoption, the Company elected certain transitional practical expedients offered through the guidance, including the 'package of practical expedients' whereby it did not reassess (i) whether any expired or existing contracts contain leases, (ii) the lease classification of any expired or existing leases, and (iii) initial direct costs for any existing leases, which resulted in the Company not recognizing a cumulative effect adjustment to retained earnings. Management evaluated Meta’s leasing contracts and activities and developed methodologies and processes to estimate and account for the right-of-use ("ROU") assets and lease liabilities for building leases based on the present value of future lease payments. On October 1, 2019, the Company recorded ROU assets and lease liabilities totaling $27.4 million and $28.6 million, respectively. The impact to capital ratios as a result of increased risk-weighted assets was immaterial. The adoption of this guidance did not result in a material change to lessee expense recognition. The changes to lessor accounting, as well as change in customer behavior driven by the adoption of these ASUs, impact the results of Meta’s lease financing businesses, including earlier recognition of expense due to a narrower definition of initial direct costs.

As a lessee, the Company enters into contracts to lease real estate, information technology equipment and other various types of equipment. Leases that transfer substantially all of the benefits and risks of ownership to the Company are classified as finance leases, while all others are classified as operating leases. At lease commencement for buildings, a lease liability and ROU asset are calculated and recognized on both types of leases. The lease liability is equal to the present value of the future minimum lease payments. The ROU asset is equal to the lease liability, plus any initial direct costs and prepaid lease payments, less any lessor incentives received. Operating lease ROU assets are included in other assets and finance lease ROU assets are included in premises and equipment, net. The Company uses the appropriate term Federal Home Loan Bank ("FHLB") rate to determine the discount rate for the present value calculation of future minimum lease payments when an implicit rate is not known for a given lease. The lease term used in the calculation includes any options to extend that the Company is reasonably certain to exercise. The Company has elected to not recognize assets or liabilities on its balance sheet related to short-term leases.

Subsequent to lease commencement, lease liabilities recorded for finance leases are measured using the effective interest rate method and the related ROU assets are amortized on a straight-line basis over the lease term. Interest expense and amortization expense are recorded separately on the Consolidated Statements of Operations in interest expense on borrowings and occupancy and equipment noninterest expense, respectively. At September 30, 2020, the Company had no finance lease ROU assets or lease liabilities. For operating leases, total lease cost is comprised of lease expense, short-term lease cost, variable lease cost and sublease income. Lease expense includes future minimum lease payments, which are recognized on a straight-line basis over the lease term, as well as common area maintenance charges, real estate taxes, insurance and other expenses, where applicable, which are expensed as incurred. Total lease cost for operating leases is recorded in occupancy and equipment noninterest expense. See Note 11. Operating Lease Right-of-Use Assets and Liabilities for further information.

The Company also adopted the following ASUs effective October 1, 2019, none of which had a material impact on the Company’s Consolidated Financial Statements:

–ASU 2018-02, Income Statement -- Reporting Comprehensive Income (Topic 220)): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company elected to not reclassify tax effects stranded in accumulated other comprehensive income.
–ASU 2018-09, Codification Improvements.
–ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying Interactions between Topics 321, 323 and 815.
–ASU 2020-03, Codification Improvements to Financial Instruments.
ASUs TO BE ADOPTED

ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs published as clarifications to Topic 326, requires entities to replace the incurred loss impairment methodology with a current expected loss (CECL) methodology to determine the allowance for credit losses for loans, net investments in leases, debt securities held at amortized cost, and certain off-balance sheet credit exposures. CECL requires loss estimates for the remaining estimated life of the asset to be measuring using historical loss data as well as adjustments for current conditions and reasonable and supportable forecasts of future economic conditions. The adoption of CECL will be reflected using a modified retrospective approach with a cumulative effect adjustment to Retained Earnings recorded as of October 1, 2020 in the Company’s Quarterly Report on Form 10-Q for the quarter-ending December 31, 2020.
The Company has established a governance structure to implement CECL and has developed methodologies to be used upon adoption. At September 30, 2020, loan and lease portfolios totaled $3.32 billion with a corresponding allowance for loan and lease losses (ALLL) of $56.2 million under current GAAP. Based on parallel runs of the CECL process that were performed in conjunction with the current ALLL process, the Company estimates that the adoption of CECL will result in an allowance for credit losses (ACL) that is larger than the current ALLL amount by $12.0 million to $13.0 million in total for all portfolios. A portion of this increase is a result of new requirements to record ACL related to acquired loans and leases, regardless of any credit mark recorded. Under current GAAP, credit marks are included in the determination of the fair value adjustments reflected as a discount to the carrying value of the loans, and an ALLL is not recorded on acquired loans and leases until there is evidence of credit deterioration post acquisition. However, upon adoption of CECL, an ACL is recorded for all acquired loans and leases based on the lifetime loss concept. The remaining credit and interest mark from acquisition accounting as of September 30, 2020 will continue to accrete over the life of the loan or lease but will no longer be considered when estimating the ACL for remaining acquired loans and leases upon CECL adoption.

The adoption of CECL will also result in an increase in the liability for off-balance sheet credit exposures between $0.8 million and $0.9 million. For other assets within the scope of the standard such as debt securities held-to-maturity and other receivables, management expects the impact from CECL to be inconsequential.

The Company estimates a cumulative tax effected adjustment to record ACL and to increase the off-balance sheet credit exposure liability results in a reduction to retained earnings of $10.0 million to $11.0 million. Management is finalizing its review of certain asset-specific risk characteristics. Management is also evaluating financial statement and disclosure impacts as well as determining whether to elect to utilize the three-year phase-in period for regulatory impact of CECL. As the Corporation finalizes the implementation of the standard in the first quarter of fiscal year 2021, final decisions by management will result in the specific October 1, 2020 ACL impact being established.

The initial increase to the Company’s ALLL and liability for off-balance sheet credit exposures will be recorded as an adjustment to beginning of the year retained earnings. Post adoption, as loans and leases are added to the portfolio, the Company expects higher levels of ACL determined by CECL assumptions, resulting in accelerated recognition of provision for credit losses, as compared to historical results.

ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. This ASU modifies the disclosure requirements on fair value measurements in Topic 820, including the removal, modification to, and addition of certain disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The majority of the disclosure changes are to be applied on a prospective basis. The Company will adopt this ASU effective October 1, 2020. Although this ASU impacts the Company’s fair value disclosures, no additional impact to the Consolidated Financial Statements is expected.

ASU 2018-17, Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable Interest Entities. The relevant amendments in this ASU provide updated guidance when determining whether a decision-making fee is a variable interest and requires reporting entities to consider indirect interest held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety. The result of these amendments is likely more decision makers not having a variable interest through their decision-making arrangements. These amendments will also create alignment between determining whether a decision-making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. This ASU is effective for fiscal years beginning after December 15, 2019. The Company does not expect a material impact on the Consolidated Financial Statements.
ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The amendments in this ASU are intended to simplify the accounting for income taxes by removing certain exceptions to the general rules found in Topic 740-Income Taxes. The majority of the amendments are to be applied on a prospective basis. This ASU is effective for fiscal years beginning December 15, 2021. The Company is currently evaluating the impact of this guidance on the consolidated financial statements.

ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional expedients and exceptions to applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform if certain criteria are met. The amendments include a one-time sale or transfer election of held-to-maturity debt securities impacted by reference rate reform. The amendments in this ASU are effective upon issuance through December 31, 2022. The Company is currently evaluating the impact of this guidance on the consolidated financial statements.
v3.20.2
SIGNIFICANT EVENTS
 12 Months Ended
Sep. 30, 2020
Unusual or Infrequent Items, or Both [Abstract]  
SIGNIFICANT EVENTS SIGNIFICANT EVENTS
COVID-19 Pandemic

The COVID-19 pandemic began impacting the U.S. and global economies in the first calendar quarter of 2020. In March 2020, the U.S. declared a national emergency and imposed travel restrictions, limitations of business operations in certain industries, and other efforts in order to impede the spread of COVID-19. Since the onset of this pandemic, macroeconomic conditions and markets have significantly deteriorated. While the process of phased re-openings of the economies of many states began in May and June, COVID-19 continues to have a significant effect on individuals, businesses and the economy. In response to the impacts of COVID-19, the U.S. federal government enacted the Coronavirus Aid, Relief, and Economic Security Act ("CARES Act") on March 27, 2020. The goal of the CARES Act is to prevent a severe economic downturn through various measures, including direct financial aid to American families and economic stimulus to significantly impacted industry sectors.

Accommodations to Borrowers

The Company is participating in the Paycheck Protection Program ("PPP"), which is being administered by the Small Business Administration ("SBA"). It is the Company's understanding that loans funded through the PPP program are fully guaranteed by the U.S. government and that a portion of these loans will ultimately be forgiven by the SBA in accordance with the terms of the program. See Note 5. Loans and Leases, Net for further information related to this program.

In response to the COVID-19 pandemic impact on customers, the Company is engaging in more frequent communication with borrowers to better understand their situation and challenges and has been offering credit-worthy borrowers experiencing temporary hardship certain loan and lease modifications ("COVID modifications"), such as payment deferrals, as a result of interagency guidance issued on March 22, 2020 encouraging companies to work with customers impacted by COVID-19. The Company elected to treat COVID modifications on leases as part of the enforceable rights and obligations of the parties under the existing lease contract, resulting in these payment deferrals being treated as variable lease payments under the existing lease versus lease modifications. Additionally, for COVID modifications on loans, the Company adjusted its effective interest rate to reflect the payment deferral modification and continued accruing interest during this period. Short-term modifications made on a good faith basis in response to COVID-19 borrowers whose payments were current prior to any relief, are not to be considered troubled debt restructurings, and will not be considered delinquent so long as they meet their revised obligations in the modification agreement.

As of September 30, 2020, $170.0 million of the loans and leases that were granted deferral payments by the Company were still in their deferment period. In addition, the Company has made other COVID-19 related modifications, of which $23.3 million are still active as of September 30, 2020. The majority of the other modifications were related to adjusting the type or amount of the customer's payments.
The table below presents the outstanding balance of active COVID-19 related modifications by type and category.
September 30, 2020
(Dollars in Thousands)COVID-19 Related Payment DeferralsOther COVID-19 Related Modifications
National Lending
Term lending$26,559 $— 
Asset based lending3,078 4,846 
Factoring— 18,434 
Lease financing5,896 — 
Insurance premium finance230 — 
SBA/USDA7,724 — 
Other commercial finance69 — 
Commercial finance43,556 23,280 
Consumer credit products1,574 — 
Other consumer finance4,223 — 
Consumer finance5,797 — 
Total National Lending49,353 23,280 
Community Banking
Commercial real estate and operating120,695 — 
Consumer one-to-four family real estate and other— — 
Total Community Banking120,695 — 
Total loans and leases170,048 23,280 
Rental equipment— — 
Total COVID-19 related modifications$170,048 $23,280 

Financial Impact

The Company recorded $9.0 million in provision expense during the three months ended September 30, 2020, compared to $4.1 million for the comparable period in the prior year. The increase in provision was primarily within the retained community bank, tax services, and commercial finance portfolios, partially offset by a decrease in the consumer finance portfolio. Provision increases in the community bank and commercial finance portfolios were primarily attributable to movie theater, hospitality, and small ticket equipment finance relationships that have experienced ongoing stress related to the COVID-19 pandemic. Additional provisions were also applied to loans and leases that received short-term payment deferrals. The Company’s approach to estimating the COVID-19 impact on credit quality is presented in Note 5. Loans and Leases, Net.

The Company's interest and fee income could be reduced as a result of COVID-19. While interest and fees will continue to accrue in accordance with GAAP, a decrease in loan demand could lead to slower loan growth or even a contraction in loan balances in the near term. In addition, should eventual credit losses emerge, interest income and fees accrued may need to be reversed in future periods. At this time, the Company is unable to project the materiality of such an impact. No additional significant financial impacts directly related to COVID-19 were identified for the fiscal year ended September 30, 2020.
v3.20.2
DIVESTITURES
 12 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
DIVESTITURES DIVESTITURES
On the Closing Date, the Company sold the Bank's Community Bank division, a component of the Company's Corporate segment, to Central Bank, a state-chartered bank headquartered in Storm Lake, Iowa. The sale included all of the Community Bank division's deposits, branch locations, fixed assets and employees and a portion of the Community Bank division’s loan portfolio. The Company has summarized the results of the transaction below.

(Dollars in Thousands)Fair Value at
February 29, 2020
Cash and cash equivalents$2,504 
Loans268,584 
Premises, furniture and equipment4,945 
Other assets1,250 
Total assets$277,283 
Deposits$290,493 
Other liabilities1,720 
Total liabilities$292,213 
Net assets$(14,930)
Purchase price4,345 
Gain on sale$19,275 

The $19.3 million gain on sale (before tax) was recognized within noninterest income on the Company's Consolidated Statements of Operations for the fiscal year ended September 30, 2020. In addition to what's reflected above, the Company also recognized $0.6 million, $0.2 million, $0.8 million, and $0.3 million in legal, IT, consulting, and nonrecurring compensation expenses related to the sale of the Community Bank division, respectively.

The Company entered a servicing agreement with Central Bank for the retained Community Bank loan portfolio that became effective on the Closing Date. The Company recognized $3.5 million in servicing fee expense during the fiscal year ended September 30, 2020.

On August 4, 2020 and September 17, 2020, the Company sold an additional $58.6 million and $76.4 million, respectively, of the retained Community Bank portfolio to Central Bank. The sales did not result in any material gain to the Company. As of September 30, 2020, the Company had $130.1 million of community bank loans classified as held for sale and expects to sell those loans during the first quarter of fiscal year 2021. See Note 5. Loans and Leases, Net, and Note 26. Subsequent Events, for additional information.
The Company has summarized the Community Bank division results for the three months and fiscal year ended September 30, 2020 below.

(Dollars in Thousands)
Community Bank Sold(1)
Community Bank Retained(2)
Total Community Bank
Three Months Ended September 30, 2020
Net interest income$— $9,045 $9,045 
(Reversal) Provision for loan and lease losses(2,470)4,370 1,900 
Noninterest income— 5 5 
Noninterest expense327 2,646 2,973 
Net income (loss) before income tax expense$2,143 $2,034 $4,177 
Fiscal Year Ended September 30, 2020
Net interest income$2,512 $34,393 $36,905 
(Reversal) Provision for loan and lease losses(4,711)18,891 14,180 
Noninterest income19,694 (3,468)16,226 
Noninterest expense5,282 7,759 13,041 
Net income (loss) before income tax expense$21,635 $4,275 $25,910 
(1) Reflects the activity of the assets and liabilities included in the disposal of the Community Bank division through September 30, 2020.
(2) Reflects the activity of the retained Community Bank loan portfolio as of September 30, 2020.
v3.20.2
SECURITIES
 12 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
SECURITIES SECURITIES
 
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities are presented below. 
(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2020
Debt securities AFS
SBA securities$159,722 $5,391 $(158)$164,955 
Obligation of states and political subdivisions825 16 — 841 
Non-bank qualified obligations of states and political subdivisions314,819 8,978 (23)323,774 
Asset-backed securities329,139 2,015 (6,229)324,925 
Mortgage-backed securities439,879 14,567 (839)453,607 
Total debt securities AFS$1,244,384 $30,967 $(7,249)$1,268,102 


(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2019
Debt securities AFS
SBA securities$182,327 $3,655 $— $185,982 
Obligation of states and political subdivisions858 16 — 874 
Non-bank qualified obligations of states and political subdivisions396,430 5,030 (903)400,557 
Asset-backed securities305,603 262 (3,331)302,534 
Mortgage-backed securities378,670 5,731 (1,855)382,546 
Total debt securities AFS1,263,888 14,694 (6,089)1,272,493 
(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2020
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$87,183 $1,040 $(29)$88,194 
Mortgage-backed securities5,427 124 — 5,551 
Total HTM securities$92,610 $1,164 $(29)$93,745 

(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2019
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$127,582 $108 $(1,403)$126,287 
Mortgage-backed securities7,182 14 (13)7,183 
Total HTM securities$134,764 $122 $(1,416)$133,470 

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 the Company 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 the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity. The Company believes 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.

GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: AFS, HTM or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income ("AOCI"). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company had no trading securities at September 30, 2020 or 2019.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position, were as follows: 
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2020
Debt securities AFS
SBA securities$32,257 $(102)$9,875 $(56)$42,132 $(158)
Non-bank qualified obligations of states and political subdivisions6,265 (6)3,103 (17)9,368 (23)
Asset-backed securities106,474 (1,089)178,686 (5,140)285,160 (6,229)
Mortgage-backed securities138,338 (839)— — 138,338 (839)
Total debt securities AFS$283,334 $(2,036)$191,664 $(5,213)$474,998 $(7,249)
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2019
Debt securities AFS
SBA securities$10,262 $— $— $— $10,262 $— 
Non-bank qualified obligations of states and political subdivisions66,326 (177)55,428 (726)121,754 (903)
Asset-backed securities158,176 (1,823)93,259 (1,508)251,435 (3,331)
Mortgage-backed securities1,713 (1)89,634 (1,854)91,347 (1,855)
Total debt securities AFS$236,477 $(2,001)$238,321 $(4,088)$474,798 $(6,089)

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2020
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$7,397 $(9)$3,637 $(20)$11,034 $(29)
Total debt securities HTM$7,397 $(9)$3,637 $(20)$11,034 $(29)

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2019
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$5,967 $(6)$109,368 $(1,397)$115,335 $(1,403)
Mortgage-backed securities1,471 — 1,803 (13)3,274 (13)
Total debt securities HTM$7,438 $(6)$111,171 $(1,410)$118,609 $(1,416)

At September 30, 2020 and 2019, the Company's investment portfolio included securities with current unrealized losses that have existed for longer than one year. All of these securities are considered to be acceptable credit risks. Because (i) the declines in fair value were due to changes in market interest rates, not in estimated cash flows, (ii) the Company does not intend or has not made a decision to sell these securities and (iii) it is not more likely than not that the Company will be required to sell the securities before recovery of their amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2020 or 2019.

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 MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
Securities AFS at Fair Value
(Dollars in Thousands)Amortized CostFair Value
At September 30, 2020
Due in one year or less$1,385 $1,398 
Due after one year through five years20,805 21,769 
Due after five years through ten years32,441 34,025 
Due after ten years749,874 757,303 
 804,505 814,495 
Mortgage-backed securities439,879 453,607 
Total securities AFS, at fair value$1,244,384 $1,268,102 

(Dollars in Thousands)Amortized CostFair Value
At September 30, 2019
Due in one year or less$— $— 
Due after one year through five years16,749 17,143 
Due after five years through ten years50,263 51,840 
Due after ten years818,206 820,964 
 885,218 889,947 
Mortgage-backed securities378,670 382,546 
Total securities AFS, at fair value$1,263,888 $1,272,493 

Securities HTM at Fair Value
(Dollars in Thousands)Amortized CostFair Value
At September 30, 2020
Due after ten years$87,183 $88,194 
 87,183 88,194 
Mortgage-backed securities5,427 5,551 
Total securities HTM, at cost$92,610 $93,745 

(Dollars in Thousands)Amortized CostFair Value
At September 30, 2019
Due after ten years$127,582 $126,287 
 127,582 126,287 
Mortgage-backed securities7,182 7,183 
Total securities HTM, at cost$134,764 $133,470 

Activity related to the sale of securities available for sale is summarized below. 
Fiscal Year ended202020192018
(Dollars in Thousands)
Available For Sale
   Proceeds from sales$4,904 $755,616 $596,758 
   Gross gains on sales51 6,006 2,551 
   Gross losses on sales— 5,277 10,728 
 Net gain (loss) on securities AFS$51 $729 $(8,177)
There was no activity related to the sale of securities held to maturity during the fiscal years ended September 30, 2020, 2019, and 2018.

Securities with fair values of zero and approximately $21.9 million at September 30, 2020 and 2019, respectively, were pledged as collateral for public funds on deposit. Securities with fair values of zero and approximately $4.8 million at September 30, 2020, and 2019, respectively, were pledged as collateral for individual, trust and estate deposits.

Other investments, at cost, include equity securities without a readily determinable fair value, which are included in other assets on the consolidated statement of financial condition, and shares of stock in the Federal Reserve Bank ("FRB") of Minneapolis and the FHLB of Des Moines.

Equity Securities
Equity securities without a readily determinable fair value totaled $11.0 million at September 30, 2020 and $6.5 million at September 30, 2019.

FHLB Stock
The Company’s borrowings from the FHLB are secured by a blanket collateral agreement with respect to a percentage of unencumbered loans and the pledge of specific investment securities. Such advances can be made pursuant to several different credit programs, each of which has its own interest rate and range of maturities.

The investments in the FHLB stock are required investments related to the Company’s membership in and current borrowings from the FHLB of Des Moines. The investments in the FHLB of Des Moines could be adversely impacted by the financial operations of the FHLB and actions of their regulator, the Federal Housing Finance Agency.

The FHLB stock is carried at cost since it is generally redeemable at par value. The carrying value of the stock held at the FHLB was $7.5 million and $30.9 million at September 30, 2020 and 2019, respectively. At fiscal year end 2020 and 2019, the Company pledged securities with fair values of approximately $673.8 million to be used against FHLB advances as needed and $812.2 million against specific FHLB advances, respectively. In addition, a combination of qualifying residential and other real estate loans of approximately $333.8 million and $928.8 million were pledged as collateral at September 30, 2020 and 2019, respectively.

Included in Interest and Dividend Income from other investments is $0.8 million, $1.0 million and $1.1 million related to dividend income on FHLB stock for the fiscal years ended September 30, 2020, 2019 and 2018, respectively.

FRB Stock
Upon conversion to a national bank on April 1, 2020, the Bank is required by federal law to subscribe to capital stock (divided into shares of $100 each) as a member of the FRB of Minneapolis with an amount equal to six per centum of the paid-up capital stock and surplus. One-half of the subscription is paid at time of application, and one-half is subject to call of the Board of Governors of the Federal Reserve System. FRB of Minneapolis stock held by the Bank at September 30, 2020 totaled $19.7 million. These equity securities are 'restricted' in that they can only be owned by member banks. At fiscal year end 2020, the Company pledged securities with fair values of approximately $359.7 million against FRB advances.

Included in Interest and Dividend Income from other investments is $0.3 million related to dividend income on FRB stock for the fiscal year ended September 30, 2020.

These equity securities are ‘restricted’ in that they can only be sold back to the respective institution from which they were acquired or another member institution at par. Therefore, FRB and FHLB stocks are less liquid than other marketable equity securities, and the fair value approximates cost. The Company evaluates impairment for investments held at cost on at least an annual basis based on the ultimate recoverability of the par value. No impairment was recognized for such investments for the fiscal years ended September 30, 2020, 2019 or 2018.
v3.20.2
LOANS AND LEASES, NET
 12 Months Ended
Sep. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND LEASES, NET LOANS AND LEASES, NET
Loans and Leases

Loans and leases consist of the following:
(Dollars in Thousands)September 30, 2020September 30, 2019
National Lending
Term lending(1)
$805,323 $641,742 
Asset based lending(1)
182,419 250,465 
Factoring281,173 296,507 
Lease financing(1)
281,084 177,915 
Insurance premium finance337,940 361,105 
SBA/USDA(2)
318,387 88,831 
Other commercial finance101,658 99,665 
Commercial finance2,307,984 1,916,230 
Consumer credit products89,809 106,794 
Other consumer finance134,342 161,404 
Consumer finance224,151 268,198 
Tax services3,066 2,240 
Warehouse finance293,375 262,924 
Total National Lending2,828,576 2,449,592 
Community Banking
Commercial real estate and operating457,371 883,932 
Consumer one-to-four family real estate and other16,486 259,425 
Agricultural real estate and operating11,707 58,464 
Total Community Banking485,564 1,201,821 
Total loans and leases3,314,140 3,651,413 
Net deferred loan origination fees8,625 7,434 
Total gross loans and leases3,322,765 3,658,847 
Allowance for loan and lease losses(56,188)(29,149)
Total loans and leases, net(3)
$3,266,577 $3,629,698 
(1) The Company has updated the presentation of its loan and lease table beginning in the fiscal 2020 first quarter. The new presentation includes a new category called term lending. Certain balances previously included in the asset based lending and lease financing categories have been reclassified into the new term lending category during the fiscal 2020 first quarter. Prior period balances have been conformed to the new presentation.
(2) The Company is participating in the Paycheck Protection Program which is being administered by the Small Business Administration ("SBA"). As of September 30, 2020, the Company had 689 loans outstanding with a total of $219.0 million in loan balances that were originated as part of the program.
(3) As of September 30, 2020, the remaining balance of acquired loans and leases from the acquisition of Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank (the "Crestmark Acquisition") was $149.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $2.8 million and $2.3 million, respectively. On August 1, 2018, the Company acquired loans and leases from the Crestmark Acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.

During the fiscal year ended September 30, 2020, the Company transferred $542.1 million of Community Banking loans to held for sale. During the fiscal year ended September 30, 2019, the Company transferred $100.0 million of consumer credit product loans to held for sale

During the fiscal years ended September 30, 2020 and 2019, the Company originated $98.8 million and $171.3 million, respectively, of SBA/USDA and consumer credit product loans as held for sale.
The Company sold held for sale loans resulting in proceeds of $590.8 million and gains on sale of $7.7 million during the fiscal year ended September 30, 2020. The Company sold held for sale loans resulting in proceeds of $125.4 million and gains on sale of $5.1 million during the fiscal year ended September 30, 2019.

Loans purchased and sold by portfolio segment, including participation interests, for the fiscal years ended September 30, 2020 and 2019 were as follows:
Fiscal Year Ended
(Dollars in Thousands)September 30, 2020September 30, 2019
Loans Purchased
Loans held for sale:
Total National Lending$— $15,443 
Loans held for investment:
Total National Lending132,530 235,918 
Total Community Banking18,905 26,704 
Total purchases151,435 278,065 
Loans Sold
Loans held for sale:
Total National Lending183,508 121,071 
Total Community Banking407,296 — 
Loans held for investment:
Total Community Banking9,991 13,069 
Total sales$600,795 $134,140 

Leasing Portfolio
Effective October 1, 2019, the Company adopted ASU 2016-02, Leases (Topic 842) and related ASUs on a modified retrospective basis, electing the practical expedients and optional transition method. As such, the following leasing disclosures include information at, or for the year ended September 30, 2020.

The net investment in direct financing and sales-type leases was comprised of the following:
 September 30, 2020September 30, 2019
(Dollars in Thousands)
Carrying Amount$299,487 $191,733 
Unguaranteed residual assets17,203 13,353 
Unamortized initial direct costs2,078 1,790 
Unearned income(35,606)(27,171)
Total investment in direct financing and sales-type leases$283,162 $179,705 

The carrying amount of direct financing and sales-type leases subject to residual value guarantees was $8.7 million at September 30, 2020.
The components of total lease income were as follows:
Fiscal Year Ended
(Dollars in Thousands)September 30, 2020
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$18,300 
Leasing and equipment finance noninterest income
Lease income from operating lease payments44,319 
Profit (loss) recorded on commencement date on sales-type leases2,152 
Other(1)
4,357 
Total leasing and equipment finance noninterest income50,828 
Total lease income$69,128 
(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.

Undiscounted future minimum lease payments receivable for direct financing and sales-type leases and a reconciliation to the carrying amount recorded were as follows:
(Dollars in Thousands)As of September 30, 2020
2021$107,558 
202287,775 
202358,906 
202433,059 
202510,097 
Thereafter2,092 
Equipment under leases not yet commenced— 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases299,487 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$299,487 

The Company did not record any contingent rental income from sales-type and direct financing leases in the fiscal year ended September 30, 2020.

During the Company's fiscal 2020 second quarter, the COVID-19 pandemic began impacting global and US markets and macroeconomic conditions, and continues to have an impact. Although the ultimate impact of the pandemic on the Company's loan and lease portfolio is difficult to predict, management performed an evaluation of the loan and lease portfolio in order to assess the impact on repayment sources and underlying collateral that could result in additional losses. The framework for the analysis was based on the Company's then-current ALLL methodology with additional considerations. From this impact assessment, additional reserve levels were estimated by increasing qualitative factors. The additional reserves were estimated for loans that were granted short-term payment deferrals related to financial stress stemming from the COVID-19 pandemic along with other loans within certain industries that were considered higher risk for credit loss (e.g. transportation, hospitality, travel, entertainment and retail). Based on the Company's ongoing assessment of the COVID-19 pandemic, the Company recognized an additional provision for loan and lease losses of $26.4 million during the fiscal year ended September 30, 2020. The Company will continue to assess the impact to their customers and businesses as a result of COVID-19 and refine their estimate as more information becomes available.
Annual activity in the allowance for loan and lease losses was as follows: 
Fiscal Year Ended September 30,202020192018
(Dollars in Thousands)
Beginning balance$29,149 $13,040 $7,534 
Provision for loan and lease losses64,776 55,650 29,433 
Recoveries4,024 3,313 2,037 
Charge-offs(41,761)(42,854)(25,964)
Ending balance$56,188 $29,149 $13,040 

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for the fiscal years ended September 30, 2020 and 2019 were as follows:
Allowance for loan and lease losses:Beginning balanceProvision (recovery) for loan and lease lossesCharge-offsRecoveriesEnding balance
Fiscal Year Ended September 30, 2020
National Lending(Dollars in Thousands)
Term lending$5,533 $19,796 $(10,458)$340 $15,211 
Asset based lending2,437 (1,036)(42)47 1,406 
Factoring3,261 (245)(915)926 3,027 
Lease financing1,275 6,105 (728)371 7,023 
Insurance premium finance1,024 2,489 (2,004)620 2,129 
SBA/USDA383 2,688 (2,131)— 940 
Other commercial finance683 (501)— — 182 
Commercial finance14,596 29,296 (16,278)2,304 29,918 
Consumer credit products1,044 (199)— — 845 
Other consumer finance5,118 (538)(2,649)890 2,821 
Consumer finance6,162 (737)(2,649)890 3,666 
Tax services— 22,006 (22,834)830 2 
Warehouse finance263 31 — — 294 
Total National Lending21,021 50,596 (41,761)4,024 33,880 
Community Banking
Commercial real estate and operating6,208 15,659 — — 21,867 
Consumer one-to-four family real estate and other1,053 (755)— — 298 
Agricultural real estate and operating867 (724)— — 143 
Total Community Banking8,128 14,180 — — 22,308 
Total$29,149 $64,776 $(41,761)$4,024 $56,188 
Allowance for loan and lease losses:Beginning balanceProvision (recovery) for loan and lease lossesCharge-offsRecoveriesEnding balance
Fiscal Year Ended September 30, 2019
National Lending(Dollars in Thousands)
Term lending$89 $8,460 $(4,581)$1,565 $5,533 
Asset based lending47 2,388 (37)39 2,437 
Factoring64 5,849 (2,725)73 3,261 
Lease financing31 1,824 (1,342)762 1,275 
Insurance premium finance1,031 2,361 (2,689)321 1,024 
SBA/USDA13 370 — — 383 
Other commercial finance28 655 — — 683 
Commercial finance1,302 21,907 (11,373)2,760 14,596 
Consumer credit products785 259 — — 1,044 
Other consumer finance2,820 8,563 (6,346)81 5,118 
Consumer finance3,605 8,822 (6,346)81 6,162 
Tax services— 24,873 (25,095)222 — 
Warehouse finance65 198 — — 263 
Total National Lending4,972 55,800 (42,814)3,063 21,021 
Community Banking
Commercial real estate and operating6,220 (12)— — 6,208 
Consumer one-to-four family real estate and other632 461 (40)— 1,053 
Agricultural real estate and operating1,216 (599)— 250 867 
Total Community Banking8,068 (150)(40)250 8,128 
Total$13,040 $55,650 $(42,854)$3,313 $29,149 
The following tables provide details regarding the allowance for loan and lease losses and balances by type of allowance as of September 30, 2020 and 2019.
AllowanceLoans and Leases
Recorded InvestmentEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotalEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotal
Fiscal Year Ended September 30, 2020
National Lending(Dollars in Thousands)
Term lending$3,155 $12,056 $15,211 $26,085 $779,238 $805,323 
Asset based lending355 1,051 1,406 5,317 177,102 182,419 
Factoring274 2,753 3,027 5,071 276,102 281,173 
Lease financing1,194 5,829 7,023 4,697 276,387 281,084 
Insurance premium finance— 2,129 2,129 — 337,940 337,940 
SBA/USDA(1)
— 940 940 1,436 316,951 318,387 
Other commercial finance— 182 182 — 101,658 101,658 
Commercial finance4,978 24,940 29,918 42,606 2,265,378 2,307,984 
Consumer credit products— 845 845 — 89,809 89,809 
Other consumer finance— 2,821 2,821 1,987 132,355 134,342 
Consumer finance— 3,666 3,666 1,987 222,164 224,151 
Tax services— 2 2 — 3,066 3,066 
Warehouse finance— 294 294 — 293,375 293,375 
Total National Lending4,978 28,902 33,880 44,593 2,783,983 2,828,576 
Community Banking
Commercial real estate and operating141 21,726 21,867 160 457,211 457,371 
Consumer one-to-four family real estate and other— 298 298 104 16,382 16,486 
Agricultural real estate and operating— 143 143 6,421 5,286 11,707 
Total Community Banking141 22,167 22,308 6,685 478,879 485,564 
Total$5,119 $51,069 $56,188 $51,278 $3,262,862 $3,314,140 
(1) The ending balance collectively evaluated for impairment includes $219.0 million of loan balances that were originated as part of the Company's participation in the PPP. No reserve was applied to these loan balances as of September 30, 2020 as the PPP is administered by the SBA and are fully guaranteed.
AllowanceLoans and Leases
Recorded InvestmentEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotalEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotal
Fiscal Year Ended September 30, 2019
National Lending(Dollars in Thousands)
Term lending$450 $5,083 $5,533 $19,568 $622,174 $641,742 
Asset based lending— 2,437 2,437 378 250,087 250,465 
Factoring1,262 1,999 3,261 3,824 292,683 296,507 
Lease financing112 1,163 1,275 1,213 176,702 177,915 
Insurance premium finance— 1,024 1,024 — 361,105 361,105 
SBA/USDA51 332 383 3,841 84,990 88,831 
Other commercial finance— 683 683 — 99,665 99,665 
Commercial finance1,875 12,721 14,596 28,824 1,887,406 1,916,230 
Consumer credit products— 1,044 1,044 — 106,794 106,794 
Other consumer finance— 5,118 5,118 1,472 159,932 161,404 
Consumer finance— 6,162 6,162 1,472 266,726 268,198 
Tax services— — — — 2,240 2,240 
Warehouse finance— 263 263 — 262,924 262,924 
Total National Lending1,875 19,146 21,021 30,296 2,419,296 2,449,592 
Community Banking
Commercial real estate and operating— 6,208 6,208 258 883,674 883,932 
Consumer one-to-four family real estate and other— 1,053 1,053 100 259,325 259,425 
Agricultural real estate and operating— 867 867 2,985 55,479 58,464 
Total Community Banking— 8,128 8,128 3,343 1,198,478 1,201,821 
Total$1,875 $27,274 $29,149 $33,639 $3,617,774 $3,651,413 

In response to the ongoing COVID-19 pandemic, the Company allowed modifications, such as payment deferrals and temporary forbearance, to credit-worthy borrowers who are experiencing temporary hardship due to the effects of COVID-19. Accordingly, if all payments were less than 30 days past due prior to the onset of the pandemic effects, the loan or lease will not be reported as past due during the deferral or forbearance period. As of September 30, 2020, $170.0 million of loan and lease that were granted deferral payments by the Company were still in their deferment period. These modifications consisted solely of payment deferrals ranging from 30 days to six months. These modifications are in line with applicable regulatory guidelines and, therefore, they are not reported as troubled-debt restructurings. In addition, the Company has made other COVID-19 related modifications, of which $23.3 million were still active as of September 30, 2020. The majority of the other modifications were related to adjusting the type or amount of the customer's payments. The Company elected to accrue and recognize interest income on these modifications during the payment deferral period.

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's regulator, 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.
 
Loans and leases, or portions thereof, are charged off when collection of principal becomes doubtful. Generally, this is associated with a delay or shortfall in payments of 210 days or more for commercial insurance premium finance, 180 days or more for the purchased student loan portfolios, 120 days or more for consumer credit products and leases, and 90 days or more for community banking loans and commercial finance loans. Action is taken to charge off ERO loans if such loans have not been collected by the end of June and taxpayer advance loans if such loans have not been collected by the end of the calendar year. Non-accrual loans and troubled debt restructurings are generally considered impaired.

The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans and leases to an individual, a specific industry, or a geographic location. Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Company’s Tier 1 Capital plus the Allowance for Loan and Lease Losses.

Beginning in the fiscal 2020 first quarter the Company implemented changes to the risk rating approach on certain commercial finance portfolios as part of a streamlining process to provide a more consistent risk rating approach across all of its lending portfolios. Based upon a study of the Company's special mention commercial finance loans and leases, the Company determined that approximately $117.0 million of those loans and leases should be rated as watch under the new approach. Prior to the fiscal 2020 first quarter, none of the Company's commercial finance loans and leases were rated as watch. Based on Meta's allowance methodology, these changes in risk ratings did not have a direct impact on the allowance for loan and lease losses. The aggregate balance of watch and special mention loans and leases within the commercial finance portfolio increased to $209.6 million at September 30, 2020, compared to $145.0 million at September 30, 2019.

The Company has various portfolios of consumer finance and tax services loans that present unique risks. Due to the unique risks associated with these portfolios, the Company monitors other credit quality indicators in their evaluation of the appropriateness of the allowance for loan losses on these portfolios, and as such, these loans are not included in the asset classification table below, beginning in the fiscal 2020 first quarter. The September 30, 2019 asset classification table has been conformed to the current presentation. The outstanding balances of consumer finance loans and tax services loans were $224.2 million and $3.1 million at September 30, 2020, respectively, and $268.2 million and $2.2 million at September 30, 2019, respectively.
The asset classification of loans and leases were as follows:
Asset ClassificationPassWatchSpecial MentionSubstandardDoubtfulTotal
Fiscal Year Ended September 30, 2020
National Lending(Dollars in Thousands)
Term lending$725,101 $29,637 $24,501 $21,249 $4,835 $805,323 
Asset based lending102,013 62,512 12,577 5,317 — 182,419 
Factoring217,245 45,200 13,657 5,071 — 281,173 
Lease financing264,700 8,879 2,808 4,148 549 281,084 
Insurance premium finance336,364 284 222 701 369 337,940 
SBA/USDA308,549 8,328 74 1,436 — 318,387 
Other commercial finance100,727 931 — — — 101,658 
Commercial finance2,054,699 155,771 53,839 37,922 5,753 2,307,984 
Warehouse finance293,375 — — — — 293,375 
Total National Lending2,348,074 155,771 53,839 37,922 5,753 2,601,359 
Community Banking
Commercial real estate and operating336,236 98,295 4,049 18,211 580 457,371 
Consumer one-to-four family real estate and other15,648 41 609 188 — 16,486 
Agricultural real estate and operating1,526 — 4,930 5,251 — 11,707 
Total Community Banking353,410 98,336 9,588 23,650 580 485,564 
Total loans and leases$2,701,484 $254,107 $63,427 $61,572 $6,333 $3,086,923 

Asset ClassificationPassWatchSpecial MentionSubstandardDoubtfulTotal
Fiscal Year Ended September 30, 2019
National Lending(Dollars in Thousands)
Term lending$585,382 $— $36,792 $19,024 $544 $641,742 
Asset based lending192,427 — 57,660 378 — 250,465 
Factoring256,048 — 36,635 3,824 — 296,507 
Lease financing171,785 — 4,917 1,213 — 177,915 
Insurance premium finance361,105 — — — — 361,105 
SBA/USDA76,609 — 8,381 3,841 — 88,831 
Other commercial finance99,057 — 608 — — 99,665 
Commercial finance1,742,413 — 144,993 28,280 544 1,916,230 
Warehouse finance262,924 — — — — 262,924 
Total National Lending2,005,337 — 144,993 28,280 544 2,179,154 
Community Banking
Commercial real estate and operating875,933 1,494 2,884 3,621 — 883,932 
Consumer one-to-four family real estate and other257,575 946 708 196 — 259,425 
Agricultural real estate and operating39,409 4,631 5,876 8,548 — 58,464 
Total Community Banking1,172,917 7,071 9,468 12,365 — 1,201,821 
Total loans and leases$3,178,254 $7,071 $154,461 $40,645 $544 $3,380,975 
Past due loans and leases were as follows:
Accruing and Non-accruing Loans and LeasesNon-performing Loans and Leases
Fiscal Year Ended September 30, 202030-59 Days
Past Due		60-89 Days
Past Due		>
89 Days Past Due		Total Past
Due		CurrentTotal Loans and Leases
Receivable		> 89 Days Past Due and AccruingNon-accrual balanceTotal
(Dollars in Thousands)
Loans held for sale$— $— $— $— $183,577 $183,577 $— $— $— 
National Lending
Term lending$11,900 $3,851 $6,390 $22,141 $783,182 $805,323 $266 $16,274 $16,540 
Asset based lending17 — — 17 182,402 182,419 — — — 
Factoring— — — — 281,173 281,173 — 1,096 1,096 
Lease financing194 9,746 6,882 16,822 264,262 281,084 4,344 3,583 7,927 
Insurance premium finance1,227 748 2,364 4,339 333,601 337,940 2,364 — 2,364 
SBA/USDA— — 1,027 1,027 317,360 318,387 427 600 1,027 
Other commercial finance— — — — 101,658 101,658 — — — 
Commercial finance13,338 14,345 16,663 44,346 2,263,638 2,307,984 7,401 21,553 28,954 
Consumer credit products377 358 499 1,233 88,576 89,809 499 — 499 
Other consumer finance600 536 373 1,509 132,833 134,342 373 — 373 
Consumer finance977 894 872 2,743 221,408 224,151 872 — 872 
Tax services— — 1,743 1,743 1,323 3,066 1,743 — 1,743 
Warehouse finance— — — — 293,375 293,375 — — — 
Total National Lending14,315 15,239 19,278 48,832 2,779,744 2,828,576 10,016 21,553 31,569 
Community Banking
Commercial real estate and operating— — 630 630 456,741 457,371 50 580 630 
Consumer one-to-four family real estate and other905 114 50 1,069 15,417 16,486 — 50 50 
Agricultural real estate and operating— — 1,769 1,769 9,938 11,707 — 1,769 1,769 
Total Community Banking905 114 2,449 3,468 482,096 485,564 50 2,399 2,449 
Total loans and leases held for investment15,220 15,353 21,727 52,300 3,261,840 3,314,140 10,066 23,952 34,018 
Total loans and leases$15,220 $15,353 $21,727 $52,300 $3,445,417 $3,497,717 $10,066 $23,952 $34,018 
Accruing and Non-accruing Loans and LeasesNon-performing Loans and Leases
Fiscal Year Ended September 30, 201930-59 Days
Past Due		60-89 Days
Past Due		>
89 Days Past Due		Total Past
Due		CurrentTotal Loans and Leases
Receivable		> 89 Days Past Due and AccruingNon-accrual balanceTotal
(Dollars in Thousands)
Loans held for sale$1,122 $755 $964 $2,841 $145,936 $148,777 $964 $— $964 
National Lending
Term lending2,162 910 14,098 17,170 624,572 641,742 2,241 12,146 14,387 
Asset based lending— — — — 250,465 250,465 — — — 
Factoring— — — — 296,507 296,507 — 1,669 1,669 
Lease financing1,160 1,134 1,736 4,030 173,885 177,915 1,530 308 1,838 
Insurance premium finance1,999 2,881 3,807 8,687 352,418 361,105 3,807 — 3,807 
SBA/USDA83 — 255 338 88,493 88,831 — 255 255 
Other commercial finance— — — — 99,665 99,665 — — — 
Commercial finance5,404 4,925 19,896 30,225 1,886,005 1,916,230 7,578 14,378 21,956 
Consumer credit products627 557 239 1,423 105,371 106,794 239 — 239 
Other consumer finance932 1,005 1,078 3,015 158,389 161,404 1,078 — 1,078 
Consumer finance1,559 1,562 1,317 4,438 263,760 268,198 1,317 — 1,317 
Tax services— — 2,240 2,240 — 2,240 2,240 — 2,240 
Warehouse finance— — — — 262,924 262,924 — — — 
Total National Lending6,963 6,487 23,453 36,903 2,412,689 2,449,592 11,135 14,378 25,513 
Community Banking
Commercial real estate and operating565 — — 565 883,367 883,932 — — — 
Consumer one-to-four family real estate and other458 — 9 467 258,958 259,425 — 44 44 
Agricultural real estate and operating49 — — 49 58,415 58,464 — — — 
Total Community Banking1,072 — 9 1,081 1,200,740 1,201,821 — 44 44 
Total loans and leases held for investment$8,035 $6,487 $23,462 $37,984 $3,613,429 $3,651,413 $11,135 $14,422 $25,557 
Total loans and leases$9,157 $7,242 $24,426 $40,825 $3,759,365 $3,800,190 $12,099 $14,422 $26,521 

Non-accruing loans and leases were $24.0 million and $14.4 million at September 30, 2020 and 2019, respectively. There were $10.1 million and $12.1 million in accruing loans and leases delinquent 90 days or more at September 30, 2020 and 2019, respectively. For the fiscal year ended September 30, 2020, gross interest income, which would have been recorded had the non-accruing loans and leases been current in accordance with their original terms, was insignificant, none of which was included in interest income.

Certain loans and leases 89 days or more past due as to interest or principal continue to accrue because they are (1) well-secured and in the process of collection or (2) one-to-four family real estate loans or consumer loans exempt under regulatory rules from being classified as non-accrual until later delinquency, usually 120 days past due.

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 scheduled payments, as described above.
Impaired loans and leases at September 30, 2020 and 2019 were as follows:
September 30, 2020Recorded
Balance		Unpaid Principal
Balance		Specific
Allowance
Loans and leases without a specific valuation allowance
National Lending(Dollars in Thousands)
Term lending$17,349 $18,823 $— 
Asset based lending3,914 3,914 — 
Factoring3,892 4,967 — 
Lease financing1,797 1,805 — 
SBA/USDA1,436 2,263 — 
Commercial finance28,388 31,772 — 
Other consumer finance1,987 2,104 — 
Consumer finance1,987 2,104 — 
Total National Lending30,375 33,876 — 
Community Banking
Consumer one-to-four family real estate and other104 104 — 
Agricultural real estate and operating6,421 6,421 — 
Total Community Banking6,525 6,525 — 
Total$36,900 $40,401 $— 
Loans and leases with a specific valuation allowance
National Lending
Term lending$8,736 $8,736 $3,155 
Asset based lending1,403 1,403 355 
Factoring1,179 1,191 274 
Lease financing2,900 2,900 1,194 
Commercial finance14,218 14,230 4,978 
Total National Lending14,218 14,230 4,978 
Community Banking
Commercial real estate and operating160 160 141 
Total Community Banking160 160 141 
Total$14,378 $14,390 $5,119 
September 30, 2019Recorded
Balance		Unpaid Principal
Balance		Specific
Allowance
Loans and leases without a specific valuation allowance
National Lending(Dollars in Thousands)
Term lending$12,644 $13,944 $— 
Asset based lending378 378 — 
Factoring1,563 2,638 — 
Lease financing1,062 1,062 — 
SBA/USDA2,595 2,595 — 
Commercial finance18,242 20,617 — 
Other consumer finance1,472 1,539 — 
Consumer finance1,472 1,539 — 
Total National Lending19,714 22,156 — 
Community Banking
Commercial real estate and operating258 258 — 
Consumer one-to-four family real estate and other100 100 — 
Agricultural real estate and operating2,985 2,985 — 
Total Community Banking3,343 3,343 — 
Total$23,057 $25,499 $— 
Loans and leases with a specific valuation allowance
National Lending
Term lending$6,924 $6,951 $450 
Factoring2,261 3,601 1,262 
Lease financing151 151 112 
SBA/USDA1,246 1,246 51 
Commercial finance10,582 11,949 1,875 
Total National Lending10,582 11,949 1,875 
Total$10,582 $11,949 $1,875 
The following table provides the average recorded investment in impaired loans and leases for the fiscal years ended:
Fiscal Year Ended September 30,
20202019
(Dollars in Thousands)Average
Recorded
Investment		Recognized Interest IncomeAverage
Recorded
Investment		Recognized Interest Income
National Lending
Term lending$26,126 $386 $6,119 $344 
Asset based lending1,339 — 1,347 — 
Factoring4,075 13 4,751 5 
Lease financing3,370 16 3,313 17 
SBA/USDA3,164 — 639 — 
Commercial finance38,074 415 16,169 $366 
Other consumer finance1,860 143 1,207 67 
Consumer finance1,860 143 1,207 67 
Total National Lending39,934 558 17,376 433 
Community Banking
Commercial real estate and operating466 27 269 14 
Consumer one-to-four family real estate and other114 10 172 6 
Agricultural real estate and operating2,949 (74)1,483 107 
Total Community Banking3,529 (37)1,924 127 
Total loans and leases$43,463 $521 $19,300 $560 

The Company’s troubled debt restructurings ("TDRs") typically involve forgiving a portion of interest or principal on existing loans, making loans at a rate materially less than current market rates, or extending the term of the loan. There were $9.5 million of National Lending loans and leases and $5.2 million of Community Banking loans that were modified in a TDR during the fiscal year ended September 30, 2020, all of which were modified to extend the term of the loan. There were $2.9 million of National Lending loans and leases and $2.5 million of Community Banking loans that were modified in a TDR during the fiscal year ended September 30, 2019.

During the fiscal year ended September 30, 2020, the Company had $3.9 million of National Lending loans and $3.3 million of Community Banking loans that were modified in a TDR within the previous 12 months and for which there was a payment default. During the fiscal year ended September 30, 2019, the Company had $0.9 million of Community Banking loans and $0.2 million of National Lending loans or leases that were modified in a TDR within the previous 12 months and for which there was a payment default. TDR net charge-offs and the impact of TDRs on the Company's allowance for loan and lease losses were insignificant during the fiscal years ended September 30, 2020 and September 30, 2019.
v3.20.2
EARNINGS PER COMMON SHARE
 12 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE EARNINGS PER COMMON SHARE
 
Earnings per common share is computed after deducting any preferred dividends, if applicable. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the earnings per share calculation. Basic earnings per common share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per common share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in earnings per share calculations.
 
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share is presented below.
For the Fiscal Years Ended September 30,
(Dollars in Thousands, Except Share and Per Share Data)202020192018
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.$104,720 $97,004 $51,620 
Weighted average common shares outstanding35,651,709 38,880,919 30,737,499 
Basic income per common share$2.94 $2.49 $1.68 
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.$104,720 $97,004 $51,620 
Weighted average common shares outstanding35,651,709 38,880,919 30,737,499 
Outstanding options - based upon the two-class method— 40,718 115,551 
Weighted average diluted common shares outstanding35,651,709 38,921,637 30,853,050 
Diluted income per common share$2.94 $2.49 $1.67 
v3.20.2
PREMISES, FURNITURE, AND EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
PREMISES, FURNITURE, AND EQUIPMENT, NET PREMISES, FURNITURE AND EQUIPMENT, NET
 
Fiscal year-end premises and equipment were as follows:
(Dollars in Thousands)September 30, 2020September 30, 2019
Land$1,354 $2,932 
Buildings20,170 30,906 
Furniture, fixtures, and equipment67,302 61,216 
 88,826 95,054 
Less: accumulated depreciation and amortization(47,218)(49,122)
Net book value$41,608 $45,932 

Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $9.2 million, $8.6 million and $5.7 million for the fiscal years ended September 30, 2020, 2019 and 2018, respectively.
RENTAL EQUIPMENT, NET
Rental equipment consists of the following:
September 30, 2020September 30, 2019
(Dollars in Thousands)
Computers and IT networking equipment$15,926 $37,352 
Motor vehicles and other52,913 23,884 
Other furniture and equipment74,197 77,140 
Solar panels and equipment118,808 116,505 
Total261,844 254,881 
Accumulated depreciation(57,601)(46,344)
Unamortized initial direct costs1,721 — 
Net book value$205,964 $208,537 

During fiscal year 2019, an impairment was recorded related to solar panels and equipment. See Note 10. Goodwill and Intangible Assets for further information.
Undiscounted future minimum lease payments expected to be received for operating leases were as follows:
(Dollars in Thousands)September 30, 2020
2021$30,509 
202226,461 
202322,737 
202416,609 
202511,834 
Thereafter17,797 
Total undiscounted future minimum lease payments receivable for operating leases$125,947 
v3.20.2
RENTAL EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
RENTAL EQUIPMENT, NET PREMISES, FURNITURE AND EQUIPMENT, NET
 
Fiscal year-end premises and equipment were as follows:
(Dollars in Thousands)September 30, 2020September 30, 2019
Land$1,354 $2,932 
Buildings20,170 30,906 
Furniture, fixtures, and equipment67,302 61,216 
 88,826 95,054 
Less: accumulated depreciation and amortization(47,218)(49,122)
Net book value$41,608 $45,932 

Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $9.2 million, $8.6 million and $5.7 million for the fiscal years ended September 30, 2020, 2019 and 2018, respectively.
RENTAL EQUIPMENT, NET
Rental equipment consists of the following:
September 30, 2020September 30, 2019
(Dollars in Thousands)
Computers and IT networking equipment$15,926 $37,352 
Motor vehicles and other52,913 23,884 
Other furniture and equipment74,197 77,140 
Solar panels and equipment118,808 116,505 
Total261,844 254,881 
Accumulated depreciation(57,601)(46,344)
Unamortized initial direct costs1,721 — 
Net book value$205,964 $208,537 

During fiscal year 2019, an impairment was recorded related to solar panels and equipment. See Note 10. Goodwill and Intangible Assets for further information.
Undiscounted future minimum lease payments expected to be received for operating leases were as follows:
(Dollars in Thousands)September 30, 2020
2021$30,509 
202226,461 
202322,737 
202416,609 
202511,834 
Thereafter17,797 
Total undiscounted future minimum lease payments receivable for operating leases$125,947 
v3.20.2
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
 12 Months Ended
Sep. 30, 2020
Real Estate [Abstract]  
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS
The following table provides an analysis of changes in foreclosed real estate and repossessed assets:
Fiscal Year Ended September 30,
(Dollars in Thousands)20202019
Balance, beginning of period$29,494 $31,638 
Additions9,983 190 
Reductions:
Write-downs568 432 
Net proceeds from sale23,992 1,917 
Gain (loss) on sale(4,960)15 
   Total reductions29,520 2,334 
Balance, ending of period$9,957 $29,494 

At September 30, 2020 and 2019, the Company had established a valuation allowance of $0.5 million and $0.1 million for repossessed assets, respectively. As of September 30, 2020 and 2019, the Company had no loans or leases in the process of foreclosure.

During the fiscal year ended September 30, 2020, the Company sold $28.1 million of other real estate owned ("OREO"), which consisted of assets related to a Community Bank agriculture real estate customer. The sale occurred via public auction and consisted of 30-plus parcels of land. The sale of 30-plus parcels closed in the fiscal 2020 first quarter. The Company applied Subtopic ASC 610-20, Gains and Losses from the Derecognition of Nonfinancial Assets to record the sale. The following table is a summary of the sale transaction, as reflected in the Company's financial statements:
September 30, 2020
(Dollars in Thousands)
Purchase price$23,083 
Carrying value of OREO28,122 
Loss on sale(5,039)
Deferred income recognized1,096 
  Net impact$(3,943)
The Company recognized a $5.0 million loss from the sale of foreclosed property during the fiscal year ended September 30, 2020, which is included in the "Gain (loss) on sale of other" line on the Consolidated Statements of Operations. The Company also recognized $1.1 million in deferred rental income and $0.2 million in OREO expenses related to these foreclosed properties during the fiscal year ended September 30, 2020.
v3.20.2
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS GOODWILL AND INTANGIBLE ASSETS
 
The Company held a total of $309.5 million of goodwill at September 30, 2020. The recorded goodwill is a result of multiple business combinations that have been consummated since fiscal year 2015, with the most recent pursuant to the Crestmark Acquisition that closed on August 1, 2018. Goodwill is assessed for impairment at least annually or more often if conditions indicate a possible impairment. The assessment is done at a reporting unit level, which is one level below the operating segments. The Company has changed its basis of presentation for segments. See Note 22. Segment Reporting for additional information on the Company's segment reporting.

The changes in the carrying amount of the Company’s goodwill and intangible assets for the fiscal years ended September 30, 2020 and 2019 were as follows: 
(Dollars in Thousands)PaymentsBankingCorporate Services/OtherTotal
Goodwill
September 30, 2019$87,145 $222,360 $— $309,505 
Acquisitions— — — — 
Impairment— — — — 
September 30, 2020$87,145 $222,360 $— $309,505 
September 30, 2018$87,145 $216,125 $— $303,270 
Acquisitions— — — — 
Measurement Period Adjustments(1)
— 6,235 — 6,235 
Impairment— — — — 
September 30, 2019$87,145 $222,360 $— $309,505 
(1) The Company recognized measurement period adjustments on provisional goodwill during fiscal year 2019 related to the Crestmark Acquisition.

Due to the ongoing economic impacts from the COVID-19 pandemic, the Company conducted a quantitative interim goodwill impairment assessment as of June 30, 2020. The impairment assessment compared the fair value of each reporting unit with its carrying amount (including goodwill). If the carrying amount of the reporting unit exceeds its fair value, an impairment loss is recognized in an amount equal to the excess. The Company’s interim assessment estimated fair value for each reporting unit using an income approach that incorporated a discounted cash flow model that involves many management assumptions based upon future growth projections which include estimates of COVID-19 impacts on our various business lines. Assumptions included estimates of future after-tax cash flows, growth rates, and discount rates based upon industry and competitor analyses. Results of the interim assessment indicated no goodwill impairment for any of the reporting units as of June 30, 2020. The Company completed a qualitative goodwill impairment assessment as of September 30, 2020. Based on the results, it was identified that it was more likely than not the fair value of goodwill recorded exceeded the current carrying value and concluded no impairment existed as of September 30, 2020.
(Dollars in Thousands)
Trademark (1)
Non-Compete (2)
Customer Relationships (3)
All Others (4)
Total
Intangibles
Balance as of September 30, 2019$11,959 $827 $33,207 $6,817 $52,810 
Acquisitions during the period— — — 35 35 
Amortization during the period(1,058)(405)(8,874)(660)(10,997)
Write-offs during the period— — — (156)(156)
Balance as of September 30, 2020$10,901 $422 $24,333 $6,036 $41,692 
Gross carrying amount$14,624 $2,480 $82,088 $10,113 $109,305 
Accumulated amortization(3,723)(2,058)(47,507)(3,887)(57,175)
Accumulated impairment— — (10,248)(190)(10,438)
Balance as of September 30, 2020$10,901 $422 $24,333 $6,036 $41,692 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

(Dollars in Thousands)
Trademark (1)
Non-Compete (2)
Customer Relationships (3)
All Others (4)
Total
Intangibles
Balance as of September 30, 2018$12,987 $1,297 $48,455 $7,980 $70,719 
Acquisitions during the period— — — 115 115 
Amortization during the period(1,028)(470)(15,248)(965)(17,711)
Write-offs during the period— — — (313)(313)
Balance as of September 30, 2019$11,959 $827 $33,207 $6,817 $52,810 
Gross carrying amount$14,624 $2,480 $82,088 $10,703 $109,895 
Accumulated amortization(2,665)(1,653)(38,633)(3,227)(46,178)
Accumulated impairment— — (10,248)(659)(10,907)
Balance as of September 30, 2019$11,959 $827 $33,207 $6,817 $52,810 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. There were no impairments to intangible assets for the fiscal year ended September 30, 2020. There was $0.1 million in impairments to intangible assets for the fiscal year ended September 30, 2019. Intangible impairment expense is recorded within the impairment expense line of the Consolidated Statements of Operations.
The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the subsequent fiscal years at September 30, 2020 was as follows:
Fiscal Year EndedAnticipated Amortization
(Dollars in Thousands)
2021$8,548 
20226,422 
20235,104 
20244,387 
20253,830 
Thereafter13,401 
Total anticipated intangible amortization$41,692 

Measurement Period Adjustments and Impairment - DC Solar
The Company previously purchased a portfolio of mobile solar generators ("MSGs") from DC Solar Solutions, Inc. and certain of its affiliates, a relationship in the Company's solar leasing business, and, in turn, leased the MSGs to DC Solar Distribution, Inc., an affiliate of DC Solar Solutions. During 2019, the Company became aware that the DC Solar entities and their affiliates filed for bankruptcy and the entities, including their principals, are subjects of ongoing federal investigations involving allegations of fraudulent misconduct. The Company had three separate operating leases with DC Solar - two of which were included in the acquired Crestmark balances on August 1, 2018. The third transaction was originated in August 2018, after the closing of the Crestmark Acquisition. The Company considered the bankruptcy filing and fraud allegations as new facts and circumstances and concluded the alleged fraud existed at the acquisition date for the acquired DC Solar transactions. As a result, the identified impairment for the acquired DC Solar transactions and other related adjustments were recorded as measurement period adjustments to the acquired assets and liability amounts recognized and were offset through provisional goodwill. The impairment and related adjustments for the DC Solar transaction originated post-acquisition have been reflected in fiscal year 2019 earnings. No additional impairment or net financial impact has been recognized since fiscal year 2019. As of September 30, 2020, the underlying assets are ready to be re-leased and are now part of normal business activities.

Measurement Period Adjustments - Other
The Company recorded additional measurement period adjustments in 2019 for provisional tax, compensation liabilities and other liabilities assumed through the Crestmark Acquisition. The Company obtained additional information about facts and circumstances existing at the Crestmark Acquisition date that resulted in a net increase to liabilities and goodwill recognized of $3.8 million.
v3.20.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
 12 Months Ended
Sep. 30, 2020
Leases [Abstract]  
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
Operating lease ROU assets, included in other assets, were $25.8 million at September 30, 2020.

Operating lease liabilities, included in accrued expenses and other liabilities, were $27.1 million at September 30, 2020.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities were as follows:
(Dollars in Thousands)
2021$3,742 
20223,479 
20232,799 
20242,808 
20252,755 
Thereafter15,765 
Total undiscounted future minimum lease payments 31,348 
Discount(4,275)
Total operating lease liabilities$27,073 

The weighted-average discount rate and remaining lease term for operating leases were as follows:

September 30, 2020
Weighted-average discount rate2.35 %
Weighted-average remaining lease term (years)11.39

The components of total lease costs for operating leases, included in occupancy and equipment noninterest expense, were as follows:
(Dollars in Thousands)Fiscal Year Ended September 30, 2020
Lease expense$3,454 
Short-term and variable lease cost496 
Sublease income(733)
Total lease cost for operating leases$3,217 
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 $2,000 to $867,000 plus the payment of property taxes, normal maintenance, and insurance on certain properties. The Company is also a party to capital lease agreements for building and equipment that expire at various times through fiscal year 2035. Interest expense for these capital lease obligations was $0.1 million for the fiscal year ended September 30, 2019, and is included in interest expense. Depreciation expense for the capital lease assets was $0.1 million for the fiscal year ended September 30, 2019 and is included in noninterest expense. The Company adopted ASC 842, Leasing, effective October 1, 2019. Refer to Note 1. Summary of Significant Accounting Policies for additional information on adoption impact and Note 11. Operating Lease Right-of-Use Assets and Liabilities for additional information on current period lease commitments.
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the fiscal years presented below as of September 30 and thereafter.
 Fiscal Year Ended September 30,
(Dollars in Thousands)Operating
Leases		Capital
Leases
2020$3,709 $216 
20213,429 216 
20222,955 216 
20232,561 216 
20242,457 194 
Thereafter18,971 1,876 
Total leases commitments$34,082 $2,934 
Amounts representing interest $986 
Present value of net minimum lease payments 1,948 
v3.20.2
TIME CERTIFICATES OF DEPOSIT
 12 Months Ended
Sep. 30, 2020
Deposits [Abstract]  
TIME CERTIFICATES OF DEPOSIT TIME CERTIFICATES OF DEPOSIT
 
Time certificates of deposit in denominations of $250,000 or more were approximately $231.0 million and $51.4 million at September 30, 2020, and 2019, respectively.
 
At September 30, 2020, the scheduled maturities of time certificates of deposit were as follows for the fiscal years ending: 
(Dollars in Thousands)
2021$247,971 
202225,663 
2023538 
2024— 
2025— 
Total (1)
$274,172 
(1) As of September 30, 2020, the Company had $253.9 million of certificates of deposit which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition.

Under the Dodd-Frank Act, IRA and non-IRA deposit accounts are permanently insured up to $250,000 by the DIF under management of the FDIC.
v3.20.2
SHORT-TERM AND LONG-TERM BORROWINGS
 12 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
SHORT-TERM AND LONG-TERM BORROWINGS SHORT-TERM AND LONG-TERM BORROWINGS
Short-Term Borrowings
September 30,20202019
(Dollars in Thousands)
Overnight federal funds purchased $— $642,000 
Repurchase agreements— 4,019 
     Total$— $646,019 

The Company had no overnight federal funds purchased from the FHLB or from other financial institutions at September 30, 2020, as compared to $477.0 million of overnight federal funds purchased from the FHLB and $165.0 million from other financial institutions at September 30, 2019. At September 30, 2020 and 2019, the Company had no short-term advances from the FHLB.
 
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 real estate and securities collateral. The Bank has the right to use, commingle, and dispose of the collateral it has assigned to the FHLB. Under the agreement, the Bank must maintain “eligible collateral” that has a “lending value” at least equal to the “required collateral amount,” all as defined by the agreement.
 
At fiscal year-end 2020 and 2019, the Bank pledged securities with fair values of approximately $673.8 million and $812.2 million, respectively, to be used against FHLB advances as needed. In addition, qualifying real estate loans of approximately $333.8 million, and $928.8 million were pledged as collateral at September 30, 2020, and 2019, respectively.

The company had no securities sold under agreements to repurchase at September 30, 2020 and $4.0 million at September 30, 2019.
An analysis of securities sold under agreements to repurchase at September 30, 2020 and 2019 follows:
September 30,20202019
(Dollars in Thousands)
Highest month-end balance$2,550 $4,306 
Average balance328 3,542 
Weighted average interest rate for the fiscal year2.00 %2.67 %
Weighted average interest rate at fiscal year end— %2.41 %

As of September 30, 2020, the Company did not have any securities pledged as collateral for securities sold under agreements to repurchase. There were $4.9 million of securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2019.

The Bank has a line of credit with another financial institution for $25.0 million as of September 30, 2020. This line of credit has no fee, and, as of September 30, 2020, the Bank had not drawn on it.

Long-Term Borrowings
September 30,20202019
(Dollars in Thousands)
Long-term FHLB advances$— $110,000 
Trust preferred securities13,661 13,661 
Subordinated debentures (net of issuance costs)73,807 73,644 
Other long-term borrowings (1)
10,756 18,533 
     Total$98,224 $215,838 
(1) Includes $10.6 million of discounted leases and $0.1 million of capital lease obligations at September 30, 2020.

Management extinguished its remaining long-term FHLB advances in the fiscal 2020 fourth quarter. Prior to doing so, the advances had an outstanding balance of $110.0 million at a weighted average cost of 2.41%. The early extinguishment resulted in a pre-tax charge of $1.7 million to other expense in the fiscal 2020 fourth quarter.

At September 30, 2020, the scheduled maturities of the Company's long-term borrowings were as follows for the fiscal years ending:
September 30,Long-term FHLB advancesTrust preferred securitiesSubordinated debenturesOther long-term borrowingsTotal
(Dollars in Thousands)
2021$— $— $— $5,442 $5,442 
2022— — — 2,735 2,735 
2023— — — 1,853 1,853 
2024— — — 726 726 
2025— — — — — 
Thereafter— 13,661 73,807 — 87,468 
Total long-term borrowings$— $13,661 $73,807 $10,756 $98,224 

Certain trust preferred securities are due to First Midwest Financial Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The securities were issued in 2001 in conjunction with the Trust’s issuance of 10,000 shares of Trust Preferred Securities. The securities bear the same interest rate and terms as the trust preferred securities. The securities are included on the Consolidated Statements of Financial Condition as liabilities. 
The Company issued all of the 10,310 authorized shares of trust preferred securities of First Midwest Financial Capital Trust I holding solely securities. Distributions are paid semi-annually. Cumulative cash distributions are calculated at a variable rate of LIBOR plus 3.75% (4.01% at September 30, 2020, and 5.81% at September 30, 2019), 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.

Through the Crestmark Acquisition, the Company acquired $3.4 million in floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. The subordinated debentures bear interest at LIBOR plus 3.00%, have a stated maturity of 30 years and are redeemable by the Company at par, with regulatory approval. The interest rate is reset quarterly at distribution dates in February, May, August, and November. The interest rate as of September 30, 2020 was 3.23%. The Company has the option to defer interest payments on the subordinated debentures from time to time for a period not to exceed five consecutive years.

The Company completed the public offering of $75.0 million of 5.75% fixed-to-floating rate subordinated debentures during fiscal year 2016. These notes are due August 15, 2026. The subordinated debentures were sold at par, resulting in net proceeds of approximately $73.9 million. At September 30, 2020, the Company had $73.8 million in aggregate principal amount in subordinated debentures, net of issuance costs of $1.2 million.
v3.20.2
STOCKHOLDERS' EQUITY
 12 Months Ended
Sep. 30, 2020
Equity [Abstract]  
STOCKHOLDERS' EQUITY STOCKHOLDERS' EQUITY
Repurchase of Common Stock
During fiscal year 2020, the Company repurchased 3,669,597 shares of its common stock, at an average price of $33.04 per share, which exhausted the remaining shares available for repurchase by the Company under the March 26, 2019 share repurchase program. The Company's Board of Directors authorized the November 20, 2019 share repurchase program to repurchase up to an additional 7,500,000 shares of the Company's outstanding common stock. This authorization is effective from November 21, 2019 through December 31, 2022. The Company suspended its share repurchase activity in March 2020 and resumed repurchase activity during September 2020.
Under the repurchase program, repurchased shares were retired and designated as authorized but unissued shares. The Company accounts for repurchased shares using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. As of September 30, 2020, the remaining number of shares available for repurchase under this program was 4,149,631 shares of common stock.
For the fiscal years ended September 30, 2020, and 2019, the Company also repurchased 103,830 and 104,219 shares, or $3.2 million and $3.4 million, of common stock, respectively, in settlement of employee tax withholding obligations due upon the vesting of restricted stock.

Repurchase of Treasury Stock
On June 25, 2019, Meta retired $5.0 million, or 114,558 shares, of common stock held in treasury. The Company accounts for the retirement of repurchased shares, including treasury stock, using the par value method under which the repurchase price is charged to paid-in capital up to the amount of the original proceeds of those shares. When the repurchase price is greater than the original issue proceeds, the excess is charged to retained earnings. No shares of common stock held in treasury were retired during the fiscal year ended September 30, 2020.
v3.20.2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 12 Months Ended
Sep. 30, 2020
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 
The Company maintains an Employee Stock Ownership Plan (“ESOP”) for eligible employees who have 1,000 hours of employment with the Bank, have worked at least one year at the Bank and who have attained age 21. ESOP expense of $3.0 million, $2.9 million and $2.1 million was recorded for the fiscal years ended September 30, 2020, 2019 and 2018, 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 fiscal years ended September 30, 2020, 2019 and 2018, 157,909 shares, 98,753 shares and 72,996 shares, from the suspense account, with a fair value of $19.22, $32.61 and $27.55 per share, respectively, were released. For the fiscal years ended September 30, 2020, 2019 and 2018, allocated shares and total ESOP shares reflect 59,865 shares, 79,926 shares and 6,687 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings. At September 30, 2020, 2019 and 2018, there were 5,662, 5,336 and 3,987 shares purchased, respectively, for dividend reinvestment.

Fiscal year-end ESOP shares are as follows: 
At September 30,202020192018
(Dollars in Thousands)
Allocated shares809,116 778,088 812,346 
Unearned shares— — — 
Total ESOP shares809,116 778,088 812,346 
Fair value of unearned shares$— $— $— 

The Company also has a profit sharing plan covering substantially all full-time employees. Profit sharing expense included in compensation and benefits, for the fiscal years ended September 30, 2020, 2019 and 2018 was $3.1 million, $3.0 million and $2.2 million, respectively. As of October 1, 2020, the Company modified its profit sharing plan to incorporate a Qualified Automatic Contribution Arrangement (QACA) safe harbor provision, whereby employee contributions are matched at 100% of the first 4% of eligible compensation contributed.
v3.20.2
STOCK COMPENSATION
 12 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
STOCK COMPENSATION STOCK COMPENSATION
 
The Company maintains the Meta Financial Group, Inc. 2002 Omnibus Incentive Plan, as amended and restated (the "2002 Omnibus Incentive Plan"), which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company. Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

The following table shows the effect to income, net of tax benefits, of share-based expense recorded:

Fiscal Year Ended September 30,202020192018
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $2,567, $3,230, and $3,139, respectively
$7,656 $9,716 $7,878 

As of September 30, 2020, stock-based compensation expense not yet recognized in income totaled $7.5 million, which is expected to be recognized over a weighted-average remaining period of 2.52 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 a period of 10 years with 100% vesting generally occurring either at grant date or over a period of four years. No options were granted during the fiscal years ended September 30, 2020, 2019 or 2018. The intrinsic value of options exercised during the fiscal years ended September 30, 2020, 2019 and 2018 were $1.0 million, $1.8 million and $1.9 million, respectively.
 
Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date. Director shares are issued to the Company’s directors, and these shares vest immediately. The total fair value of director’s shares granted during the fiscal years ended September 30, 2020, 2019 and 2018 was $0.8 million, $1.0 million and $1.1 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 fiscal years ended September 30, 2020, 2019 or 2018.

In addition, during the first and second quarters of fiscal 2017, shares were granted to certain executive officers of the Company in connection with their signing of employment agreements with the Company. These stock awards vest in equal installments over eight years.

The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the fiscal years ended September 30, 2020 and 2019.
 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, 201959,835 $8.06 1.54$1,469 
Granted— — — — 
Exercised(59,835)8.06 1.001,011 
Forfeited or expired— — — — 
Options outstanding, September 30, 2020— $— 0$— 
Options exercisable end of fiscal year— $— 0$— 

 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, 2018155,961 $8.48 1.78$2,974 
Granted— — — — 
Exercised(93,099)8.68 — 1,842 
Forfeited or expired(3,027)10.60 — 33 
Options outstanding, September 30, 201959,835 $8.06 1.54$1,469 
Options exercisable end of fiscal year59,835 $8.06 1.54$1,469 
 Number of
Shares		Weighted Average
Fair Value At Grant
(Dollars in Thousands, Except Share and Per Share Data)
Nonvested shares outstanding, September 30, 2019926,122 $29.54 
Granted191,372 32.32 
Vested(316,283)29.92 
Forfeited or expired(11,128)31.35 
Nonvested shares outstanding, September 30, 2020790,083 $30.03 

 Number of
Shares		Weighted Average
Fair Value At Grant
(Dollars in Thousands, Except Share and Per Share Data)
Nonvested shares outstanding, September 30, 20181,005,813 $29.89 
Granted315,802 25.18 
Vested(391,061)26.97 
Forfeited or expired(4,432)25.98 
Nonvested shares outstanding, September 30, 2019926,122 $29.54 
v3.20.2
INCOME TAXES
 12 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
INCOME TAXES INCOME TAXES
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following: 
Fiscal Years Ended September 30,
(Dollars in Thousands)202020192018
Federal:
Current$3,148 $5,278 $(4,023)
Deferred(4,505)(14,831)5,895 
 (1,357)(9,553)1,872 
State:   
Current4,860 5,649 2,611 
Deferred2,158 530 634 
 7,018 6,179 3,245 
Income tax (benefit) expense$5,661 $(3,374)$5,117 
The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities were:
September 30,
(Dollars in Thousands)20202019
Deferred tax assets:
Bad debts$13,968 $6,805 
Deferred compensation1,288 1,626 
Stock based compensation4,073 4,296 
Valuation adjustments5,343 6,596 
General business credits(1)
37,888 27,935 
Accrued expenses2,155 3,767 
Lease liability6,798 — 
Other assets3,215 3,144 
 74,728 54,169 
Deferred tax liabilities:  
Premises and equipment(2,852)(3,084)
Intangibles(2,114)(1,812)
Net unrealized gains on securities available for sale(5,964)(2,146)
Deferred income— (179)
Leased assets(35,279)(24,996)
Right-of-use assets(6,550)— 
Other liabilities(4,246)(3,068)
 (57,005)(35,285)
Net deferred tax assets$17,723 $18,884 
(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the fiscal years ended September 30, 2020 and 2019. These credits expire on September 30, 2040.

As of September 30, 2020, the Company had a gross deferred tax asset of $2.4 million for separate company state cumulative net operating loss carryforwards, for which $2.4 million was reserved. At September 30, 2019, the Company had a gross deferred tax asset of $2.0 million for separate company state cumulative net operating loss carryforwards, for which $2.0 million was reserved. These state operating loss carryforwards will expire in various subsequent periods.

In general, management believes that the realization of its deferred tax assets is more likely than not based on the expectations as to future taxable income; therefore, there was no deferred tax valuation allowance at September 30, 2020, or 2019 with the exception of the state cumulative net operating loss carryforwards discussed above.
The table below reconciles the statutory federal income tax expense and rate to the effective income tax expense and rate for the fiscal years presented. The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.
Fiscal Years Ended September 30,
202020192018
(Dollars in Thousands)AmountRateAmountRateAmount Rate
Statutory federal income tax expense and rate$24,151 21.0 %$20,568 21.0 %$14,082 24.5 %
Change in tax rate resulting from:
State income taxes net of federal benefits5,444 4.7 %5,000 5.1 %2,461 4.3 %
162(m) disallowance1,129 1.0 %2,777 2.8 %— — %
Tax exempt income(1,212)(1.0)%(2,714)(2.8)%(6,968)(12.1)%
Nondeductible acquisition costs— — %— — %1,295 2.3 %
General business credits(22,284)(19.4)%(27,126)(27.7)%(3,948)(6.9)%
Tax reform— — %— — %3,849 6.7 %
Amended Crestmark Bancorp historical tax return— — %— — %(4,644)(8.1)%
Other, net(1,567)(1.4)%(1,879)(1.8)%(1,010)(1.7)%
Income tax expense (benefit)$5,661 4.9 %$(3,374)(3.4)%$5,117 9.0 %

The provisions of ASC 740, Income Taxes, address the determination of how tax benefits claimed or expected to be claimed on a tax return should be recorded in the Consolidated Financial Statements. Under ASC 740, the Company recognizes the tax benefits from an uncertain tax position only if it is more likely than not that the tax position will be sustained upon examination, with a tax examination being presumed to occur, including the resolution of any related appeals or litigation. The tax benefits recognized in the Consolidated Financial Statements from such a position are measured as the largest benefit that has a greater than 50% likelihood of being realized upon ultimate resolution.

The Company uses the flow through method of accounting for investment tax credits under which the credits are recognized as a reduction to income tax expense in the period in which the credit arises. During the fiscal years ended September 30, 2020, 2019, and 2018, $20.5 million, $27.1 million, and $4.0 million in investment tax credits were recognized as a reduction to income tax expense, respectively.

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, 2017 and later remain subject to examination by the Internal Revenue Service. For state purposes, the tax years ended September 30, 2017 and later remain open for examination, with few exceptions.
 
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits follows: 
September 30,
(Dollars in Thousands)20202019
Balance at beginning of fiscal year$368 $434 
Additions (reductions) for tax positions related to prior years723 (66)
Balance at end of fiscal year$1,091 $368 
 
The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $981,000 as of September 30, 2020. 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 $115,000 as of September 30, 2020. The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months.

The Company does not expect significant income tax impacts due to the CARES Act, which was signed in response to the COVID-19 pandemic.

The Company adopted ASU 2018-02 as of October 1, 2020. The amendments in this ASU allow for a reclassification from AOCI to Retained Earnings for stranded tax effects from the Tax Cuts and Jobs Act (TCJA). For the Company, these amendments are limited to any unrealized gains and losses held in Other Comprehensive Income for available-for-sale debt securities held at the time of the TCJA enactment. The Company determined there were no stranded tax effects from the TCJA enactment and has not made any reclassification from AOCI to Retained Earnings upon adoption of this ASU.
v3.20.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 12 Months Ended
Sep. 30, 2020
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 
As U.S. banking organizations, the Company and the Bank are required to comply with the regulatory capital rules adopted by the Federal Reserve and the OCC (the "Capital Rules") that became effective on January 1, 2015, subject to phase-in periods for certain requirements and other provisions of the Capital Rules. Under the Capital Rules and the regulatory framework for prompt corrective action, the Company and Bank must meet specific capital guidelines that involve quantitative measures of the Company’s and Bank’s assets, liabilities and certain off-balance-sheet items as calculated under regulatory accounting practices. The Company’s and Bank’s capital amounts and classifications are also subject to qualitative judgments by regulators about components, risk weightings and other factors.

The Capital Rules require the Company and the Bank to maintain minimum ratios (set forth in the table below) of total risk-based capital and Tier 1 capital (as defined in the regulations) to risk-weighted assets (as defined), and a leverage ratio consisting of Tier 1 capital (as defined) to average assets (as defined). At September 30, 2020, 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.
 CompanyBankMinimum to be Adequately Capitalized Under Prompt Corrective Action ProvisionsMinimum to be Well Capitalized Under Prompt Corrective Action Provisions
September 30, 2020
Tier 1 leverage capital ratio6.58 %7.56 %4.00 %5.00 %
Common equity Tier 1 capital ratio11.78 13.96 4.50 6.50 
Tier 1 capital ratio 12.18 14.00 6.00 8.00 
Total capital ratio15.30 15.26 8.00 10.00 
September 30, 2019    
Tier 1 leverage capital ratio8.33 %9.65 %4.00 %5.00 %
Common equity Tier 1 capital ratio10.35 12.31 4.50 6.50 
Tier 1 capital ratio 10.71 12.37 6.00 8.00 
Total capital ratio13.01 13.02 8.00 10.00 
The following table provides a reconciliation of the amounts included in the table above for the Company.
 
Standardized Approach(1)
September 30, 2020
(Dollars in Thousands)
Total stockholders' equity$847,308 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities302,396 
LESS: Certain other intangible assets40,964 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards18,361 
LESS: Net unrealized gains (losses) on available-for-sale securities17,762 
LESS: Noncontrolling interest3,603 
Common Equity Tier 1 (1)
464,222 
Long-term borrowings and other instruments qualifying as Tier 113,661 
Tier 1 minority interest not included in common equity tier 1 capital1,894 
Total Tier 1 capital479,777 
Allowance for loan and lease losses49,343 
Subordinated debentures (net of issuance costs)73,807 
Total capital$602,927 
(1) Capital ratios were determined using the Capital Rules that became effective on January 1, 2015. The Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum common equity tier 1 capital ratio; those changes are being fully phased in through the end of 2021.

The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.

(Dollars in Thousands)September 30, 2020
Total stockholders' equity$847,308 
LESS: Goodwill309,505 
LESS: Intangible assets41,692 
Tangible common equity496,111 
LESS: AOCI17,542 
Tangible common equity excluding AOCI$478,569 
Since January 1, 2016, the Company and the Bank have been required to maintain a capital conservation buffer above the minimum risk-based capital requirements in order to avoid certain limitations on capital distributions, stock repurchases and discretionary bonus payments to executive officers. The capital conservation buffer is exclusively composed of Common Equity Tier 1 capital, and it applies to each of the three risk-based capital ratios but not the leverage ratio. The required Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios with the buffer are currently 7.0%, 8.5% and 10.5%, respectively.
v3.20.2
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Sep. 30, 2020
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES COMMITMENTS AND CONTINGENCIES
 
In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying Consolidated Financial Statements as described below.
 
At September 30, 2020 and 2019, unfunded loan commitments approximated $1.22 billion and $978.1 million, respectively, excluding undisbursed portions of loans in process. Commitments, which are disbursed subject to certain limitations, extend over various periods of time. Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract.
 
The Company had no commitments to purchase securities at September 30, 2020 or September 30, 2019. The Company had no commitments to sell securities at September 30, 2020 or September 30, 2019.
 
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. At September 30, 2020 and 2019, the Company had an allowance for credit losses on off-balance sheet credit exposures of $0.1 million. This amount is maintained as a separate liability account within other liabilities.
 
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.

LEGAL PROCEEDINGS
 
The Bank was served, on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by a former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that, after all of the programs were wound down, there were two accounts with positive balances to which Card Limited is entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4.0 million. The Court ruled in favor of MetaBank on cross motions for summary judgment and vacated the trial. Card Limited has the right to appeal. The Bank intends to continue to vigorously defend this claim, if appealed. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation.

On February 9, 2018, the Bank’s AFS/IBEX division filed a lawsuit in the United States District Court for the Eastern District of New York captioned AFS/IBEX, a division of MetaBank v. Aegis Managing Agency Limited ("AMA"), Aegis Syndicate 1225 (together with AMA, the "Aegis defendants"), CRC Insurance Services, Inc. ("CRC"), and Transportation Underwriters, Inc. The suit was filed against commercial insurance underwriters and brokers that facilitated the issuance of commercial insurance policies to Red Hook Construction Group-II, LLC (“Red Hook”). The Bank’s position is that both CRC and Transportation Underwriters represented to the Bank that, upon cancellation of the insurance policies prior to their stated terms, any unearned premiums would be refunded. The Bank then provided insurance premium financing to Red Hook, and Red Hook executed a written premium finance agreement pursuant to which Red Hook assigned its rights to any unearned premiums to the Bank. After the policies were cancelled, the Aegis defendants failed to return the unearned insurance premiums totaling just over $1.6 million owed to the Bank under the insurance policies and the premium finance agreement. The Bank is seeking recovery of all amounts to which it is entitled at law or equity and intends to vigorously pursue its claims against the defendants.

From time to time, the Company or its subsidiaries are subject to certain legal proceedings and claims in the ordinary course of business. Accruals have been recorded when the outcome is probable and can be reasonably estimated. While management currently believes that the ultimate outcome of these proceedings will not have a material adverse effect on the Company’s financial position or its results of operations, legal proceedings are inherently uncertain and unfavorable resolution of some or all of these matters could, individually or in the aggregate, have a material adverse effect on the Company’s and its subsidiaries’ respective businesses, financial condition or results of operations.
v3.20.2
LEASE COMMITMENTS
 12 Months Ended
Sep. 30, 2020
Leases [Abstract]  
LEASE COMMITMENTS OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES
Operating lease ROU assets, included in other assets, were $25.8 million at September 30, 2020.

Operating lease liabilities, included in accrued expenses and other liabilities, were $27.1 million at September 30, 2020.

Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities were as follows:
(Dollars in Thousands)
2021$3,742 
20223,479 
20232,799 
20242,808 
20252,755 
Thereafter15,765 
Total undiscounted future minimum lease payments 31,348 
Discount(4,275)
Total operating lease liabilities$27,073 

The weighted-average discount rate and remaining lease term for operating leases were as follows:

September 30, 2020
Weighted-average discount rate2.35 %
Weighted-average remaining lease term (years)11.39

The components of total lease costs for operating leases, included in occupancy and equipment noninterest expense, were as follows:
(Dollars in Thousands)Fiscal Year Ended September 30, 2020
Lease expense$3,454 
Short-term and variable lease cost496 
Sublease income(733)
Total lease cost for operating leases$3,217 
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 $2,000 to $867,000 plus the payment of property taxes, normal maintenance, and insurance on certain properties. The Company is also a party to capital lease agreements for building and equipment that expire at various times through fiscal year 2035. Interest expense for these capital lease obligations was $0.1 million for the fiscal year ended September 30, 2019, and is included in interest expense. Depreciation expense for the capital lease assets was $0.1 million for the fiscal year ended September 30, 2019 and is included in noninterest expense. The Company adopted ASC 842, Leasing, effective October 1, 2019. Refer to Note 1. Summary of Significant Accounting Policies for additional information on adoption impact and Note 11. Operating Lease Right-of-Use Assets and Liabilities for additional information on current period lease commitments.
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the fiscal years presented below as of September 30 and thereafter.
 Fiscal Year Ended September 30,
(Dollars in Thousands)Operating
Leases		Capital
Leases
2020$3,709 $216 
20213,429 216 
20222,955 216 
20232,561 216 
20242,457 194 
Thereafter18,971 1,876 
Total leases commitments$34,082 $2,934 
Amounts representing interest $986 
Present value of net minimum lease payments 1,948 
LEASE COMMITMENTS LEASE COMMITMENTS
 
The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2036, and require annual rentals ranging from $2,000 to $867,000 plus the payment of property taxes, normal maintenance, and insurance on certain properties. The Company is also a party to capital lease agreements for building and equipment that expire at various times through fiscal year 2035. Interest expense for these capital lease obligations was $0.1 million for the fiscal year ended September 30, 2019, and is included in interest expense. Depreciation expense for the capital lease assets was $0.1 million for the fiscal year ended September 30, 2019 and is included in noninterest expense. The Company adopted ASC 842, Leasing, effective October 1, 2019. Refer to Note 1. Summary of Significant Accounting Policies for additional information on adoption impact and Note 11. Operating Lease Right-of-Use Assets and Liabilities for additional information on current period lease commitments.
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the fiscal years presented below as of September 30 and thereafter.
 Fiscal Year Ended September 30,
(Dollars in Thousands)Operating
Leases		Capital
Leases
2020$3,709 $216 
20213,429 216 
20222,955 216 
20232,561 216 
20242,457 194 
Thereafter18,971 1,876 
Total leases commitments$34,082 $2,934 
Amounts representing interest $986 
Present value of net minimum lease payments 1,948 
v3.20.2
REVENUE FROM CONTRACTS WITH CUSTOMERS
 12 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
REVENUE FROM CONTRACTS WITH CUSTOMERS REVENUE FROM CONTRACTS WITH CUSTOMERS
Topic 606 applies to all contracts with customers unless such revenue is specifically addressed under existing guidance. The table below presents the Company’s revenue by operating segment. For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 22. Segment Reporting to the Consolidated Financial Statements.
(Dollars in Thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Year Ended September 30,20202019202020192020201920202019
Net interest income(1)
$108,085 $79,010 $150,766 $152,565 $187 $32,632 $259,038 $264,207 
Noninterest income:
Refund transfer product fees36,061 39,198 — — — — 36,061 39,198 
Tax advance product fees(1)
31,826 34,687 — — — — 31,826 34,687 
Payment card and deposit fees87,379 87,130 — — — — 87,379 87,130 
Other bank and deposit fees— — 984 1,163 326 779 1,310 1,942 
Rental income(1)
19 12 43,493 40,533 1,314 508 44,826 41,053 
Gain on sale of securities available-for-sale, net(1)
— — — — 51 729 51 729 
Gain on divestitures(1)
— — — — 19,275 — 19,275 — 
(Loss) gain on sale of other(1)
(19)241 9,587 7,511 (5,143)79 4,425 7,831 
Other income(1)
3,045 944 6,087 5,017 5,509 4,014 14,641 9,975 
Total noninterest income158,311 162,212 60,151 54,224 21,332 6,109 239,794 222,545 
Revenue$266,396 $241,222 $210,917 $206,789 $21,519 $38,741 $498,832 $486,752 
(1) These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.
Following is a discussion of key revenues within the scope of Topic 606. The Company provides services to customers that have related performance obligations that must be completed to recognize revenue. Revenues are generally recognized immediately upon the completion of the service or over time as services are performed. Any services performed over time generally require that the Company renders services each period; therefore, the Company measures progress in completing these services based upon the passage of time. Revenue from contracts with customers did not generate significant contract assets and liabilities.

Refund Transfer Product Fees
Refund transfer fees are specific to the tax products offered by Refund Advantage and EPS. These fees are for products, services such as payment processing, and product referral commissions. Software partner fees paid and/or incurred are recorded on a net basis. The Company’s obligation for product fees and commissions is satisfied at the time of the product delivery and obligation for payment processing is satisfied at the time of processing. The transaction price for such activity is based upon stand-alone fees within the terms and conditions. At September 30, 2020 and 2019, there were no receivables related to refund transfer fees, which reflect earned revenue with unconditional rights to payment for product fee income. All refund transfer fees are recorded within the Consumer reporting segment.

Card Fees
Card fees relate to MPS, Community Bank, Refund Advantage and EPS products. These fees are for products and services such as card activation, product support, processing, and servicing. The Company earns these fees based upon the underlying terms and conditions with each cardholder over the contract term. Agreements with the Company’s cardholders are considered daily service contracts as they are not fixed in duration. The Company’s obligation for card activation and product support fees is satisfied at the time of product delivery, while the obligation for processing and servicing is satisfied over the course of each month. The transaction price for such activity is based upon the stand-alone fees within the terms and conditions of the cardholder agreements. Card fee revenue also includes income from sponsorships, associations and networks, and interchange income. Sponsorship income relates to fees charged to the Company’s ATM sponsorship partners, where the obligation is satisfied over the course of each month. Association and network income reflect incentives, performance bonuses and rebates with MasterCard and Visa. The obligation for such income is satisfied at the time when certain thresholds of transaction volume have been met. Interchange income is generated by cardholder activity, and therefore the Company’s obligations are satisfied as activity occurs. The transaction price for such activity is based on underlying rates and activity thresholds within the terms and conditions of the applicable agreements. Card fee revenue also includes breakage revenue. Breakage represents the estimated amount that will not be redeemed by the holder of unregistered, unused prepaid cards for goods or services. Breakage revenue is recognized ratably over the expected customer usage period and is an estimate based on cardholder behavior and breakage rates. Breakage is also impacted by escheatment laws. Card fees are recorded within both the Consumer and Commercial reporting segments, the substantial majority of which is derived from the Company's payments division and reported in payments card and deposit fees. Card fees related to the Community Bank are reported within other bank and deposit fees.

Bank and Deposit Fees
Fees are earned on depository accounts for consumer and commercial customers and include fees for account services, overdraft services, safety deposit box rentals, and event-driven services (i.e. returned checks, ATM surcharge, card replacement, wire transfers, and stop pays). The Company’s obligation for event-driven services is satisfied at the time of the event when the service is delivered, while its obligation for account services is satisfied over the course of each month. The Company’s obligation for overdraft services is satisfied at the time of overdraft. The transaction price for such activity is based upon stand-alone fees within the terms and conditions of the deposit agreements. Bank and deposit fees are recorded within both the Consumer and Commercial reporting segments, the majority of which are derived from the Company's payments division. Bank and deposit fees related to the Community Bank are reported within other bank and deposit fees.
Principal vs Agent
The Consumer reporting segment includes principal/agent relationships. Within this segment, MPS relationships are recorded on a gross basis within the Consolidated Statements of Operations, as Meta is the principal in the contract, with the exception of association/network contracts and partner/processor contracts for prepaid cards, which are recorded on a net basis within the Consolidated Statements of Operations as Meta is the agent in these contracts. Also within this segment, Tax Service relationships are recorded on a gross basis within the Consolidated Statements of Operations, as Meta is the principal in the contract, with the exception of contracts with software providers and merchants, which are recorded on a net basis within the Consolidated Statements of Operations as Meta is the agent in these contracts.
v3.20.2
SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
SEGMENT REPORTING SEGMENT REPORTING
 
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

In the Annual Report on Form 10-K for the fiscal year ended September 30, 2019, the Company reported its results of operations through three business segments: Payments, Banking, and Corporate Services/Other. Beginning October 1, 2019, segments are now aligned with the new management operating structure implemented by the Company for fiscal year 2020. The Company accordingly has changed its basis of presentation for segments, and following such change, reports its results of operations through the following three business segments: Consumer, Commercial, and Corporate Services/Other. The Meta Payment Systems and Tax Services divisions, formerly reported in the Payments segment, are now included in the Consumer segment. The Warehouse Finance, Consumer Credit Products and ClearBalance business lines, previously reported in the Banking segment, are now included in the Consumer segment. The Crestmark and AFS divisions, formerly reported in the Banking segment, are now included in the Commercial segment. The Community Bank division and Student Loan lending portfolio, previously reported in the Banking segment, are now included in the Corporate Services/Other segment. The Corporate Services/Other segment also includes certain shared services as well as treasury related functions such as the investment portfolio, wholesale deposits and borrowings. Prior periods have been reclassified to conform to the current period presentation. The Company does not report indirect general and administrative expenses in the Consumer and Commercial segments.

The following tables present segment data for the Company for the fiscal years ended September 30, 2020, 2019 and 2018, respectively.
 ConsumerCommercialCorporate Services/OtherTotal
Fiscal Year Ended September 30, 2020
Net interest income$108,085 $150,766 $187 $259,038 
Provision for loan and lease losses21,838 29,296 13,642 64,776 
Noninterest income158,311 60,151 21,332 239,794 
Noninterest expense76,651 107,802 134,598 319,051 
Income (loss) before income tax expense (benefit)167,907 73,819 (126,721)115,005 
Total assets588,216 2,836,149 2,667,709 6,092,074 
Total goodwill87,145 222,360 — 309,505 
Total deposits4,555,999 6,226 416,975 4,979,200 
 ConsumerCommercialCorporate Services/OtherTotal
Fiscal Year Ended September 30, 2019
Net interest income$79,010 $152,565 $32,632 $264,207 
Provision for loan and lease losses25,336 21,901 8,413 55,650 
Noninterest income162,212 54,224 6,109 222,545 
Noninterest expense77,153 127,033 128,974 333,160 
Income (loss) before income tax expense (benefit)138,733 57,855 (98,646)97,942 
Total assets700,365 2,432,381 3,050,144 6,182,890 
Total goodwill87,145 222,360 — 309,505 
Total deposits2,444,452 5,588 1,886,965 4,337,005 

ConsumerCommercialCorporate Services/OtherTotal
Fiscal Year Ended September 30, 2018
Net interest income$26,111 $34,294 $70,144 $130,549 
Provision for loan losses22,202 1,968 5,262 29,432 
Noninterest income (expense)176,257 11,955 (3,687)184,525 
Noninterest expense97,288 36,422 94,522 228,232 
Income (loss) before income tax expense (benefit)82,878 7,859 (33,327)57,410 
Total assets344,919 1,942,283 3,547,865 5,835,067 
Total goodwill87,145 216,125 — 303,270 
Total deposits2,419,773 4,939 2,006,275 4,430,987 
v3.20.2
PARENT COMPANY FINANCIAL STATEMENTS
 12 Months Ended
Sep. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
PARENT COMPANY FINANCIAL STATEMENTS PARENT COMPANY FINANCIAL STATEMENTS
 
Presented below are condensed financial statements for the parent company, Meta, at the dates and for the fiscal years presented below.
 
CONDENSED STATEMENTS OF FINANCIAL CONDITION
September 30,20202019
(Dollars in Thousands)
ASSETS
Cash and cash equivalents$4,783 $8,111 
Investment securities held to maturity, at cost1,208 411 
Investment in subsidiaries933,431 933,196 
Other assets3,308 159 
Total assets$942,730 $941,877 
LIABILITIES AND STOCKHOLDERS' EQUITY  
LIABILITIES  
Long-term borrowings$87,468 $87,305 
Other liabilities7,954 10,614 
Total liabilities$95,422 $97,919 
STOCKHOLDERS' EQUITY  
Common stock$344 $378 
Additional paid-in capital594,569 580,826 
Retained earnings234,927 252,813 
Accumulated other comprehensive income (loss)17,542 6,339 
Treasury stock, at cost(3,677)(445)
Total equity attributable to parent843,705 839,911 
Noncontrolling interest3,603 4,047 
Total stockholders' equity847,308 843,958 
Total liabilities and stockholders' equity$942,730 $941,877 
CONDENSED STATEMENTS OF OPERATIONS
Fiscal Years Ended September 30,202020192018
(Dollars in Thousands)
Interest expense$5,168 $5,296 $5,061 
Other expense1,256 1,044 663 
Total expense6,424 6,340 5,724 
Loss before income taxes and equity in undistributed net income of subsidiaries(6,424)(6,340)(5,724)
Income tax (benefit)(3,638)(1,374)(1,504)
Loss before equity in undistributed net income of subsidiaries(2,786)(4,966)(4,220)
Equity in undistributed net income of subsidiaries107,476 101,970 55,840 
Other income30 — — 
Total Income107,506 101,970 55,840 
Net income attributable to parent$104,720 $97,004 $51,620 
 
CONDENSED STATEMENTS OF CASH FLOWS
For the Fiscal Years Ended September 30,202020192018
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income attributable to parent$104,720 $97,004 $51,620 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net163 153 143 
Equity in undistributed net income of subsidiaries(107,476)(101,970)(55,840)
Stock compensation10,221 12,942 11,123 
Net change:
Other assets(3,149)(35)232 
Accrued expenses and other liabilities(2,660)(6,468)(860)
Cash dividend received118,000 33,980 45,315 
Net cash provided by operating activities119,819 35,606 51,733 
CASH FLOWS FROM INVESTING ACTIVITIES
Held to maturity:
Proceeds from maturities and principal repayments— — 8 
Capital contributions to subsidiaries— — (20,322)
Alternative Investments(797)— — 
Net cash (used in) investing activities(797)— (20,314)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid(7,100)(7,760)(5,736)
Payment:
Short-term borrowings— — (11,642)
Long-term borrowings— — (258)
Purchase of shares by ESOP3,220 2,011 1,606 
Proceeds/(payment):
Exercise of stock options & issuance of common stock266 44 148 
Issuance of restricted stock2 3 4 
Issuance of commons shares due to acquisitions— — 295,767 
Cash acquired due to acquisitions— — 697 
Net increase in investment in subsidiaries— (90)(295,767)
Shares repurchased for tax withholdings on stock compensation(118,738)(49,912)(2,598)
Net cash provided by (used in) financing activities(122,350)(55,704)(17,779)
Net change in cash and cash equivalents$(3,328)$(20,098)$13,640 
CASH AND CASH EQUIVALENTS  
Beginning of fiscal year8,111 28,209 14,569 
End of fiscal year$4,783 $8,111 $28,209 

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 18 herein.
v3.20.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Sep. 30, 2020
Quarterly Financial Information Disclosure [Abstract]  
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 QUARTER ENDED
(Dollars in Thousands, Except Per Share Data)December 31March 31June 30September 30
Fiscal Year 2020
Interest and dividend income$77,625 $79,403 $67,406 $68,407 
Interest expense12,974 11,666 5,269 3,894 
Net interest income64,651 67,737 62,137 64,513 
Provision for loan and lease losses3,407 37,296 15,093 8,980 
Noninterest income37,483 120,513 41,048 40,750 
Net income attributable to parent21,068 52,304 18,190 13,158 
Earnings per common share    
Basic$0.56 $1.45 $0.53 $0.38 
Diluted0.56 1.45 0.53 0.38 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2019    
Interest and dividend income$74,976 $88,294 $81,632 $80,828 
Interest expense14,704 16,944 14,664 15,211 
Net interest income60,272 71,350 66,968 65,617 
Provision for loan and lease losses9,099 33,318 9,112 4,121 
Noninterest income37,751 105,025 43,790 35,980 
Net income attributable to parent15,398 32,120 29,291 20,195 
Earnings per common share    
Basic$0.39 $0.81 $0.75 $0.53 
Diluted0.39 0.81 0.75 0.53 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2018    
Interest and dividend income$30,857 $33,371 $34,104 $60,202 
Interest expense4,661 5,966 5,693 11,665 
Net interest income26,196 27,405 28,411 48,537 
Provision (recovery) for loan losses1,068 18,343 5,315 4,706 
Noninterest income29,268 97,419 33,225 24,613 
Net income attributable to parent4,670 31,436 6,792 8,722 
Earnings per common share    
Basic$0.15 $1.07 $0.22 $0.24 
Diluted0.15 1.06 0.22 0.24 
Dividend declared per share0.04 0.04 0.04 0.05 
v3.20.2
FAIR VALUES OF FINANCIAL INSTRUMENTS
 12 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
FAIR VALUES OF FINANCIAL INSTRUMENTS FAIR VALUES OF FINANCIAL INSTRUMENTS
 
ASC 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement. It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.
 
The fair value hierarchy is as follows:
 
Level 1 Inputs - Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs - Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.
 
Level 3 Inputs - Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available. These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability. Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.
 
There were no transfers between levels of the fair value hierarchy for the fiscal years ended September 30, 2020 or 2019.
 
Debt Securities Available for Sale and Held to Maturity. Debt securities available for sale are recorded at fair value on a recurring basis and debt securities held to maturity are carried at amortized cost.
 
The fair values of available for sale debt 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 provider'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; and our Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

Equity Securities. Marketable equity securities and certain non-marketable equity securities are recorded at fair value on a recurring basis. The fair values of marketable equity securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs).
The following table summarizes the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis.
 Fair Value At September 30, 2020
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
SBA securities$164,955 $— $164,955 $— 
Obligations of states and political subdivisions841 — 841 — 
Non-bank qualified obligations of states and political subdivisions323,774 — 323,774 — 
Asset-backed securities324,925 — 324,925 — 
Mortgage-backed securities453,607 — 453,607 — 
Total debt securities AFS$1,268,102 $— $1,268,102 $— 
Common equities and mutual funds(1)
$2,969 $2,969 $— $— 
Non-marketable equity securities(2)
$2,784 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and September 30, 2019.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

 Fair Value At September 30, 2019
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
SBA securities$185,982 $— $185,982 $— 
Obligations of states and political subdivisions874 — 874 — 
Non-bank qualified obligations of states and political subdivisions400,557 — 400,557 — 
Asset-backed securities302,534 — 302,534 — 
Mortgage-backed securities382,546 — 382,546 — 
Total debt securities AFS$1,272,493 $— $1,272,493 $— 
Common equities and mutual funds(1)
$2,606 $2,606 $— $— 
Non-marketable equity securities(2)
$1,669 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and September 30, 2019.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

Foreclosed Real Estate and Repossessed Assets. Real estate properties and repossessed assets are initially recorded at the fair value less selling costs at the date of foreclosure, establishing a new cost basis. The carrying amount represents the lower of the new cost basis or the fair value less selling costs of foreclosed assets that were measured at fair value subsequent to their initial classification as foreclosed assets.
 
Loans and Leases. The Company does not record loans and leases at fair value on a recurring basis. However, if a loan or lease is considered impaired, an allowance for loan and lease losses is established. Once a loan or lease is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables. See Note 5. Loans and Leases, Net for further information.
 
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: 
 Fair Value At September 30, 2020
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Impaired loans and leases, net
Commercial finance$9,240 $— $— $9,240 
Total National Lending9,240 — — 9,240 
Commercial real estate and operating20 — — 20 
Total Community Banking20 — — 20 
Total impaired loans and leases, net9,260 — — 9,260 
Foreclosed assets, net9,957 — — 9,957 
Total$19,217 $— $— $19,217 

 Fair Value At September 30, 2019
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Impaired loans and leases, net
Commercial finance$8,707 $— $— $8,707 
Total National Lending8,707 — — 8,707 
Total impaired loans and leases, net8,707 — — 8,707 
Foreclosed assets, net29,494 — — 29,494 
Total$38,201 $— $— $38,201 

Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)Fair Value at
September 30, 2020		Fair Value at
September 30, 2019		Valuation
Technique		Unobservable InputRange of Inputs
Impaired loans and leases, net$9,260 8,707 Market approach
Appraised values(1)
4% - 10%
Foreclosed assets, net$9,957 29,494 Market approach
Appraised values(1)
4% - 30%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs and other inputs in a range of 4% to 30%.

The following tables disclose the Company’s estimated fair value amounts of its financial instruments at the dates set forth below. It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of September 30, 2020 and 2019, 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:
 September 30, 2020
(Dollars in Thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$427,367 $427,367 $427,367 $— $— 
Debt securities available for sale1,268,102 1,268,102 — 1,268,102 — 
Debt securities held to maturity92,610 93,745 — 93,745 — 
Common equities and mutual funds(1)
2,969 2,969 2,969 — — 
Non-marketable equity securities(1)(2)
14,784 14,784 — 12,000 — 
Loans held for sale183,577 183,577 — 183,577 — 
Loans and leases receivable3,314,140 3,307,037 — — 3,307,037 
Federal Reserve Bank and Federal Home Loan Bank stocks27,138 27,138 — 27,138 — 
Accrued interest receivable16,628 16,628 16,628 — — 
Financial liabilities
Deposits4,979,200 4,980,073 4,705,028 275,045 — 
Overnight federal funds purchased— — — — — 
Federal Home Loan Bank advances— — — — — 
Other short- and long-term borrowings98,224 100,185 — 100,185 — 
Accrued interest payable1,923 1,923 1,923 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and 2019.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

 September 30, 2019
(Dollars in Thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$126,545 $126,545 $126,545 $— $— 
Debt securities available for sale1,272,493 1,272,493 — 1,272,493 — 
Debt securities held to maturity134,764 133,470 — 133,470 — 
Common equities and mutual funds(1)
2,606 2,606 2,606 — — 
Non-marketable equity securities(1)(2)
8,169 8,169 — 6,500 — 
Loans held for sale148,777 148,777 — 148,777 — 
Loans and leases receivable3,651,413 3,622,597 — — 3,622,597 
Federal Home Loan Bank stock30,916 30,916 — 30,916 — 
Accrued interest receivable20,400 20,400 20,400 — — 
Financial liabilities
Deposits4,337,005 4,338,510 2,920,516 1,417,994 — 
Overnight federal funds purchased642,000 642,000 642,000 — — 
Federal Home Loan Bank advances110,000 110,691 — 110,691 — 
Other short- and long-term borrowings109,857 113,876 — 113,876 — 
Accrued interest payable9,414 9,414 9,414 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and 2019.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at September 30, 2020 and 2019.
 
CASH AND CASH EQUIVALENTS
The carrying amount of cash and short-term investments is assumed to approximate the fair value.
 
DEBT SECURITIES AVAILABLE FOR SALE AND EQUITY SECURITIES
Debt securities available for sale and equity securities are recorded at fair value on a recurring basis. Fair values for these 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. Non-marketable equity securities are measured at fair value using NAV per share (or its equivalent) as a practical expedient.

LOANS HELD FOR SALE
The carrying amount of loans held for sale is assumed to approximate the fair value.

LOANS AND LEASES, NET
The fair values of loans and leases were estimated using an exit price methodology. The exit price estimation of fair value is based on the present value of expected cash flows, which are based on the contractual terms of the loans, adjusted for prepayments and a discount rate based on the relative risk of the cash flows. Other considerations include the loan type, remaining life of the loan and credit risk.

FEDERAL RESERVE BANK AND FEDERAL HOME LOAN BANK STOCKS
The fair value of FRB and FHLB stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.
 
ACCRUED INTEREST RECEIVABLE
The carrying amount of accrued interest receivable is assumed to approximate the fair value.
 
DEPOSITS
The carrying values of noninterest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value since deposits are immediately withdrawable without penalty. The fair value of time certificate deposits and wholesale certificate of deposits are estimated using a discounted cash flows calculation that applies the FHLB Des Moines curve to aggregated expected maturities of time deposits. In accordance with Subtopic 825-10, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) as such intangibles are not financial instruments as defined under Subtopic 825-10.
 
OVERNIGHT FEDERAL FUNDS PURCHASED
The carrying amount of federal funds purchased is assumed to approximate the fair value.

FEDERAL HOME LOAN BANK ADVANCES
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.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, SUBORDINATED DEBENTURES AND OTHER BORROWINGS
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.
 
ACCRUED INTEREST PAYABLE
The carrying amount of accrued interest payable is assumed to approximate the fair value.
 
LIMITATIONS
Fair value estimates are made at a specific point in time and are based on relevant market information about the financial instrument. Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments. These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time. Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision. Changes in assumptions as well as tax considerations could significantly affect the estimates. Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
v3.20.2
SUBSEQUENT EVENTS
 12 Months Ended
Sep. 30, 2020
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS SUBSEQUENT EVENTS
Management has evaluated subsequent events that occurred after September 30, 2020. During this period, up to the filing date of this Annual Report on Form 10-K, management identified the following subsequent event:

•On November 24, 2020, W. David Tull, a member of the Boards of Directors of the Company and the Bank, notified the Company and the Bank of his resignation from the Boards of Directors of the Company and the Bank effective November 24, 2020.

•On November 18, 2020, the Company sold an additional $129.8 million of the retained Community Bank loan portfolio to Central Bank. The sale did not result in any material gain to the Company. The loans included in the sale were classified as held for sale at September 30, 2020.

•On November 13, 2020, Michael K. Goik, Executive Vice President and Group Head of the Commercial Finance division of the Bank, notified the Bank of his decision to resign from the Bank effective on or before December 13, 2020. Mr. Goik’s resignation was not due to a dispute or disagreement with the Bank or the Company. Upon the effectiveness of his resignation, Mr. Goik’s duties will be assumed by Brett L. Pharr, Co-President and Chief Operating Officer of the Bank.
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
PRINCIPLES OF CONSOLIDATION PRINCIPLES OF CONSOLIDATIONThe Consolidated Financial Statements include the accounts of Meta Financial Group, Inc. (the “Company”), a registered bank holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries. The Company's subsidiaries include MetaBank (the “Bank”), a national bank whose primary federal regulator is the Office of the Comptroller of the Currency (the "OCC"), and Meta Capital, LLC, a wholly-owned service corporation subsidiary of MetaBank which invests in companies in the financial services industry. All significant intercompany balances and transactions have been eliminated. 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, and Crestmark Capital Trust I, which was acquired from the Crestmark Acquisition in August 2018. The Trust and Crestmark Capital Trust I are not included in the Consolidated Financial Statements of the Company. In addition, the Company evaluates its relationships with other entities to identify whether they are variable interest entities ("VIEs") and to assess whether it is the primary beneficiary of such entities. If the determination is made that the Company is the primary beneficiary, then that entity is included in the Consolidated Financial Statements.
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATIONOne of the Company's primary sources of revenue 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 revenue for the Company is interest from the purchase or origination of commercial finance loans, consumer finance loans, warehouse finance loans and community banking loans. The Company accepts deposits from customers in the normal course of business on a national basis through its MPS and tax services divisions, and through wholesale funding. The Company operates in the banking industry, which accounts for the majority of its revenues and assets. The Company uses the “management approach” for reporting information about segments in annual and interim financial statements. The management approach is based on the way the chief operating decision-maker organizes segments within a company for making operating decisions and assessing performance. Reportable segments are based on products and services, geography, legal structure, management structure and any other manner in which management disaggregates a company. Based on the management approach model, the Company has determined that its business is comprised of three reporting segments.
USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTS USE OF ESTIMATES IN PREPARING FINANCIAL STATEMENTSThe preparation of Consolidated Financial Statements in conformity with 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 valuation of residual values within lease receivables, allowance for loan and lease losses, the valuation of foreclosed real estate and repossessed assets, the valuation of goodwill and intangible assets and the fair values of securities and other financial instruments. These estimates are reviewed by management regularly; however, they are particularly susceptible to significant changes in the future.
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD
For purposes of reporting cash flows, cash and cash equivalents is defined to include the Company’s cash on hand and due from financial institutions and short-term interest-bearing deposits in other financial institutions. The Company reports cash flows net for customer loan transactions, securities purchased under agreement to resell, federal funds purchased, deposit transactions, securities sold under agreements to repurchase, and Federal Home Loan Bank ("FHLB") advances with terms less than 90 days. The Bank is required to maintain reserve balances in cash or on deposit with the FRB, based on a percentage of deposits. The total of those reserve balances was zero at September 30, 2020, and $33.9 million at September 30, 2019. 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, 2020, the Company had $2.0 million interest-bearing deposits held at the FHLB and $362.0 million in interest-bearing deposits held at the FRB. At September 30, 2020, the Company had no federal funds sold. The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
SECURITIES
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). See Note 25. Fair Values of Financial Instruments for additional information on fair value of AFS securities. HTM debt securities are measured at amortized cost. The Company classifies the majority of its securities as AFS, which are those the Company may decide to sell if needed for liquidity, asset/liability management, or other reasons. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not hold trading securities at September 30, 2020 or 2019.
 
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 using the level yield method, is included in income as earned. For callable debt securities, any purchase premium is amortized to the first call date while any discount is accreted over the contractual life of the security.

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 2020, 2019 and 2018, there was no other-than-temporary impairment recorded.
LOANS AND LEASES
LOANS AND LEASES

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 net of any unearned income, cumulative charge-offs, unamortized deferred fees and costs on originated loans, and unamortized premiums or discounts on purchased 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. Unearned income, deferred loan fees and costs, and discounts and premiums are amortized to interest income over the contractual life of the loan using the interest method. The Company generally places Community Banking loans on nonaccrual status when: the full and timely collection of interest or principal becomes uncertain; they are 90 days past due for interest or principal, unless they are both well-secured and in the process of collection; or part of the principal balance has been charged off. The majority of the Company's National Lending loans follow the same nonaccrual policy as Community Banking loans with certain commercial finance, consumer finance and tax service loans not generally being placed on non-accrual status, but instead are charged off when the collection of principal and interest become doubtful. When placed on nonaccrual status, the accrued unpaid interest receivable is reversed against interest income and any remaining amortizing of net deferred fees is suspended. Cash collected on these loans is applied to first reduce the carrying value of the loan with any remainder being recognized as interest income. Generally, a loan can return to accrual status when all delinquent interest and principal become current under the terms of the loan agreement and collectability of the remaining principal and interest is no longer doubtful. Loans are considered past due when contractually required principal or interest payments have not been made on the due dates.

For commercial loans, the Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for loans secured by collateral when: management judges the loans to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the loan has been classified as a loss by either the Company's internal loan review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the loan meets a defined number of days past due unless the loan is both well-secured and in the process of collection. For consumer loans, the Company fully charges off or charges down to net realizable value when deemed uncollectible due to bankruptcy or other factors, or meets a defined number of days past due.

The Company generally considers a loan to be impaired when, based on current information and events, it determines that it will not be able to collect all amounts due according to the loan contract, including scheduled interest payments. This evaluation is generally based on delinquency information, an assessment of the borrower’s financial condition and the adequacy of collateral, if any. The Company's impaired loans predominantly include loans on nonaccrual status in the Commercial segment and loans modified in a troubled-debt-restructuring, whether on accrual or nonaccrual status. The Company measures the amount of impairment, if any, based on the difference between the recorded investment in the loan (net of previous charge-offs, deferred loan fees or costs and unamortized premium or discount) and the present value of expected future cash flows, discounted at the loans effective interest rate. When collateral is the sole source of repayment for the impaired loan, the Company charges down to net realizable value.
As part of the Company’s ongoing risk management practices, management generally 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. Modified loan terms may include interest rate reductions, principal forgiveness, term extensions, payment forbearance or other actions intended to minimize the Company’s economic loss and to avoid foreclosure or repossession of the collateral. 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. 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.

LEASES RECEIVABLE
The Company provides various types of commercial lease financing that are classified for accounting purposes as direct financing, sales-type or operating leases. Leases that transfer substantially all of the benefits and risks of ownership to the lessee are classified as direct financing or sales-type leases and are included in loans and leases receivable on the Consolidated Statements of Financial Condition. Direct financing and sales-type leases are carried at the combined present value of future minimum lease payments and lease residual values. The determination of lease classification requires various judgments and estimates by management, including the fair value of equipment at lease inception, useful life of the equipment under lease, lease residual value, and collectability of minimum lease payments.

Sales-type leases generate dealer profit, which is recognized at lease inception by recording lease revenue net of lease cost. Lease revenue consists of the present value of the future minimum lease payments. Lease cost consists of the lease equipment’s book value, less the present value of its residual. Interest income on direct financing and sales-type leases is recognized using methods that approximate a level yield over the fixed, non-cancelable term of the lease. Recognition of interest income is generally discontinued at the time the lease becomes 90 days delinquent, unless the lease is well-secured and in process of collection. Delinquency and past due status is based on the contractual terms of the lease. The Company receives pro rata rent payments for the interim period until the lease contract commences and the fixed, non-cancelable lease term begins. Interim payments are recognized in the month they are earned and are recorded in interest income. Management has policies and procedures in place for the determination of lease classification and review of the related judgments and estimates for all lease financings.

The Company generally fully charges off or charges down to net realizable value (fair value of collateral, less estimated costs to sell) for leases when management judges the lease to be uncollectible; repayment is deemed to be protracted beyond reasonable time frames; the lease has been classified as a loss by either the Company's internal review process or its banking regulatory agencies; the customer has filed bankruptcy and the loss becomes evident owing to lack of assets; or the lease meets a defined number of days past due unless the lease is both well-secured and in the process of collection.

Some lease financings include a residual value component, which represents the estimated fair value of the leased equipment at the expiration of the initial term of the transaction. The estimation of the residual value involves judgments regarding product and technology changes, customer behavior, shifts in supply and demand, and other economic assumptions. The Company reviews residual assumptions at least annually and records impairment, if necessary, which is charged to non-interest expense in the period it becomes known. The Company may purchase and sell minimum lease payments, primarily as a credit risk reduction tool, to third-party financial institutions at fixed rates on a non-recourse basis with its underlying equipment as collateral. For those transactions that achieve sale treatment, the related lease cash flow stream and the non-recourse financing are derecognized. For those transactions that do not achieve sale treatment, the underlying lease remains on the Company’s Consolidated Statements of Financial Condition and non-recourse debt is recorded in the amount of the proceeds received. The Company retains servicing of these leases and bills, collects, and remits funds to the third-party financial institution. Upon default by the lessee, the third-party financial institutions may take control of the underlying collateral which the Company would otherwise retain as residual value.
Leases that do not transfer substantially all benefits and risks of ownership to the lessee are classified as operating leases. Such leased equipment are included in rental equipment on the Consolidated Statements of Financial Condition and are depreciated on a straight-line basis over the term of the lease to its estimated residual value. Depreciation expense is recorded as operating lease equipment depreciation expense within noninterest expense. Operating lease rental income is recognized when it becomes due and is reflected as a component of noninterest income. An allowance for lease losses is not provided on operating leases.
LOAN SERVICING AND TRANSFERS OF FINANCIAL ASSETS LOAN SERVICING AND TRANSFERS OF FINANCIAL ASSETSThe Company, from time to time, sells loan participations, generally without recourse. The Company also sells commercial SBA and USDA loans to third parties, 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 and records a servicing asset, which is included within other assets on the Consolidated Statements of Financial Condition.
ALLOWANCE FOR LOAN LOSSES
ALLOWANCE FOR LOAN AND LEASE LOSSES
The allowance for loan and lease losses ("ALLL") represents management’s estimate of probable loan and lease losses that have been incurred as of the date of the Consolidated Financial Statements. The ALLL is increased by a provision for loan and lease 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 or lease is necessarily subjective. Management’s periodic evaluation of the appropriateness of the ALLL is based on the Company’s and peer group’s past loan and lease 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 ALLL for specific problem loan or lease situations, the entire ALLL is available for any loan or lease charge-offs that occur. The ALLL consists of specific and general components.

The specific component of the ALLL relates to impaired loans and leases. Loans are generally considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms. Leases are generally considered impaired if collectability of the remaining minimum lease payments becomes uncertain. Often this is associated with a delay or shortfall in payments of 90 days or more for community banking loans and leases. Non-accrual loans and leases and all TDRs are considered impaired. Impaired loans and leases, 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 certain Community Bank and Commercial Finance loans and leases not considered impaired and is determined based upon both quantitative and qualitative analysis. A separate general reserve analysis is performed for individual classified non-impaired loans and leases and for non-classified smaller-balance homogeneous loans. The three main assumptions for the quantitative components for 2020 and 2019 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 a specified period of time. The period of time varies by portfolio and ranges from three to seven years. For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized.

•A three to seven-year LBP is appropriate as it captures the Company’s ability to workout troubled loans or relationships while continuing to factor in the loss experience resulting from varying economic cycles and other factors.

•The weighted average LEP is an estimate of the average amount of time from the point the Company identifies a credit event of the borrower to the point the loss is confirmed by the Company weighted by the dollar value of the write off. The LEP is only applied to the non-classified loan general reserve in the Company's Community Bank portfolio.
 
Qualitative adjustment considerations for the general reserve include considerations of changes in lending and leasing policies and procedures, changes in national and local economic and business conditions and developments, changes in the nature and volume of the loan and lease portfolio, changes in lending and leasing management and staff, trending in past due, classified, nonaccrual, and other loan and lease categories, changes in the Company’s loan and lease review system and oversight, changes in collateral and residual values, credit concentration risk, and the regulatory and legal requirements and environment. Beginning in the fiscal 2020 second quarter, additional reserve levels were estimated by increasing qualitative factors due to the unprecedented uncertainty stemming from the COVID-19 pandemic. The additional reserves were primarily estimated for loans and leases that were granted short-term payment deferrals related to financial stress stemming from the COVID-19 pandemic along with other loans and leases within certain industries that were considered higher risk for credit loss.

National Lending portfolios, outside of certain loans and leases in the Commercial Finance portfolio, primarily utilize a general reserve process that mostly uses historical factors related to the specific loan and lease portfolio, although other qualitative factors may be considered in the final loss rate used to calculate the reserve on these portfolios. Loans in these portfolios are generally not placed on non-accrual status or impaired. The balances are generally written off after a loan becomes past due greater than 210 days for insurance premium finance loans, 180 days for tax and other specialty lending loans, 120 days for consumer credit products and 90 days for other loans. See Note 5. Loans and Leases, Net for further information on the ALLL.
EARNINGS PER COMMON SHARE ("EPS")
EARNINGS PER COMMON SHARE (“EPS”)
Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. See Note 6. Earnings per Common Share for further information.
PREMISES, FURNITURE, AND EQUIPMENT PREMISES, FURNITURE AND EQUIPMENTLand is carried at cost. Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization. Capital leases, where the Company is the lessee, are included in premises and equipment at the capitalized amount less accumulated amortization. The Company primarily uses the straight-line method of depreciation over the estimated useful lives of the assets, which is 39 years for buildings, and range from two years to 15 years for leasehold improvements, and for furniture, fixtures and equipment. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable.
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.
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. The fair value of the real estate owned is based on independent appraisals, real estate brokers’ price opinions, or automated valuation methods, less costs to sell. The fair value of repossessed assets is based on available pricing guides, auction results or price opinions, less costs to sell. 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 and lease losses. Subsequent valuations are periodically performed by management. If the subsequent fair value, less costs to sell, declines to less than the carrying amount of the asset, the shortfall is recognized in the period it becomes known as an impairment in noninterest expense and a valuation allowance is recorded for the asset. Operating expenses of properties are also recorded in noninterest expense. Rental income of properties is recorded in noninterest income.
GOODWILL
GOODWILL
Goodwill represents the cost in excess of the fair value of net assets acquired (including identifiable intangibles) in transactions accounted for as business acquisitions. Goodwill is evaluated annually for impairment at a reporting unit level. The Company has determined that its reporting units are one level below the operating segments and distinguish these reporting units based on how the segments and reporting units are managed, taking into consideration the economic characteristics, nature of the products, and customers of the segments and reporting units. The Company performs its impairment evaluation as of September 30 of each fiscal year unless a triggering event occurs that would require an interim impairment evaluation. If the carrying amount of the reporting unit with goodwill exceeds its fair value, goodwill is considered impaired and is written down by the excess carrying value of the reporting unit. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the fiscal years ended September 30, 2020, 2019 or 2018. See Note 10. Goodwill and Intangible Assets for further information.
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. See Note 10. Goodwill and Intangible Assets for further information.
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. See Note 13. Short-Term and Long-Term Borrowings for further information.
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, 2020 and 2019, all shares in the ESOP were allocated. See Note 15. Employee Stock Ownership and Profit Sharing Plans for further information.
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 non-vested (restricted) 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 has elected, with the adoption of ASU 2016-09, to record forfeitures as they occur. See Note 16. Stock Compensation for further information.
INCOME TAXES
INCOME TAXES
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates. Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur. The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination. For tax positions not meeting the more likely than not test, no tax benefit is recorded. The Company recognizes interest and/or penalties related to income tax matters in noninterest income or noninterest expense. The effect on deferred tax assets and liabilities from a change in tax rates is recorded in income tax expense in the Consolidated Statements of Operations in the period in which the enactment date occurs. If current period income tax rates change, the impact on the annual effective income tax rate is applied year to date in the period of enactment. See Note 17. Income Taxes for further information.
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. The reserve for these unfunded commitments is included within Other Liabilities on the Consolidated Statements of Financial Condition.
REVENUE RECOGNITION
REVENUE RECOGNITION
Interest revenue from loans, leases, and investments is recognized on the accrual basis of accounting as the interest is earned according to the terms of the particular loan, lease, or investment. Income from service and other customer charges is recognized as earned. Revenue within the Consumer segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. The Company adopted Accounting Standards Update 2014-09, Revenue from Contracts with Customers, and related amendments on October 1, 2018 under the cumulative-effect method. ASU 2014-09 modifies the guidance used to recognize revenue from contracts with customers for transfers of goods or services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. Upon adoption, the Company recorded a cumulative effect adjustment of $1.5 million to retained earnings, net of tax, due to changes in timing of revenue recognition from breakage of unregistered, unused prepaid cards in the Company’s MPS division. Results for prior periods have not been adjusted and continue to be reported in accordance with the Company’s historical accounting policies. Refer to Note 21. Revenue from Contracts with Customers for additional information.
COMPREHENSIVE INCOME (LOSS)
COMPREHENSIVE INCOME (LOSS)
Comprehensive income (loss) consists of net income and other comprehensive income or loss. Other comprehensive income or loss includes the change in net unrealized gains and losses on securities AFS, net of reclassification adjustments and tax effects. Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
RECENT ACCOUNTING STANDARDS UPDATES ("ASU")
RECENTLY ADOPTED ACCOUNTING STANDARDS UPDATES ("ASU")
The following ASUs were adopted by the Company during the fiscal year ended September 30, 2020:

ASU 2016-02, Leases (Topic 842) and subsequent related updates (collectively ASU 2016-02) on October 1, 2019, which requires lessees to recognize most leases on their balance sheet. Lessor accounting is largely unchanged. The ASU requires both quantitative and qualitative disclosures regarding key information about lease arrangements from both lessees and lessors. The Company elected the effective date transition method utilizing the adoption date as the first date of application of the revised guidance. As a result, prior period amounts have not been restated. Upon adoption, the Company elected certain transitional practical expedients offered through the guidance, including the 'package of practical expedients' whereby it did not reassess (i) whether any expired or existing contracts contain leases, (ii) the lease classification of any expired or existing leases, and (iii) initial direct costs for any existing leases, which resulted in the Company not recognizing a cumulative effect adjustment to retained earnings. Management evaluated Meta’s leasing contracts and activities and developed methodologies and processes to estimate and account for the right-of-use ("ROU") assets and lease liabilities for building leases based on the present value of future lease payments. On October 1, 2019, the Company recorded ROU assets and lease liabilities totaling $27.4 million and $28.6 million, respectively. The impact to capital ratios as a result of increased risk-weighted assets was immaterial. The adoption of this guidance did not result in a material change to lessee expense recognition. The changes to lessor accounting, as well as change in customer behavior driven by the adoption of these ASUs, impact the results of Meta’s lease financing businesses, including earlier recognition of expense due to a narrower definition of initial direct costs.

As a lessee, the Company enters into contracts to lease real estate, information technology equipment and other various types of equipment. Leases that transfer substantially all of the benefits and risks of ownership to the Company are classified as finance leases, while all others are classified as operating leases. At lease commencement for buildings, a lease liability and ROU asset are calculated and recognized on both types of leases. The lease liability is equal to the present value of the future minimum lease payments. The ROU asset is equal to the lease liability, plus any initial direct costs and prepaid lease payments, less any lessor incentives received. Operating lease ROU assets are included in other assets and finance lease ROU assets are included in premises and equipment, net. The Company uses the appropriate term Federal Home Loan Bank ("FHLB") rate to determine the discount rate for the present value calculation of future minimum lease payments when an implicit rate is not known for a given lease. The lease term used in the calculation includes any options to extend that the Company is reasonably certain to exercise. The Company has elected to not recognize assets or liabilities on its balance sheet related to short-term leases.

Subsequent to lease commencement, lease liabilities recorded for finance leases are measured using the effective interest rate method and the related ROU assets are amortized on a straight-line basis over the lease term. Interest expense and amortization expense are recorded separately on the Consolidated Statements of Operations in interest expense on borrowings and occupancy and equipment noninterest expense, respectively. At September 30, 2020, the Company had no finance lease ROU assets or lease liabilities. For operating leases, total lease cost is comprised of lease expense, short-term lease cost, variable lease cost and sublease income. Lease expense includes future minimum lease payments, which are recognized on a straight-line basis over the lease term, as well as common area maintenance charges, real estate taxes, insurance and other expenses, where applicable, which are expensed as incurred. Total lease cost for operating leases is recorded in occupancy and equipment noninterest expense. See Note 11. Operating Lease Right-of-Use Assets and Liabilities for further information.

The Company also adopted the following ASUs effective October 1, 2019, none of which had a material impact on the Company’s Consolidated Financial Statements:

–ASU 2018-02, Income Statement -- Reporting Comprehensive Income (Topic 220)): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The Company elected to not reclassify tax effects stranded in accumulated other comprehensive income.
–ASU 2018-09, Codification Improvements.
–ASU 2020-01, Investments-Equity Securities (Topic 321), Investments-Equity Method and Joint Ventures (Topic 323), and Derivatives and Hedging (Topic 815): Clarifying Interactions between Topics 321, 323 and 815.
–ASU 2020-03, Codification Improvements to Financial Instruments.
ASUs TO BE ADOPTED

ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU, along with subsequent ASUs published as clarifications to Topic 326, requires entities to replace the incurred loss impairment methodology with a current expected loss (CECL) methodology to determine the allowance for credit losses for loans, net investments in leases, debt securities held at amortized cost, and certain off-balance sheet credit exposures. CECL requires loss estimates for the remaining estimated life of the asset to be measuring using historical loss data as well as adjustments for current conditions and reasonable and supportable forecasts of future economic conditions. The adoption of CECL will be reflected using a modified retrospective approach with a cumulative effect adjustment to Retained Earnings recorded as of October 1, 2020 in the Company’s Quarterly Report on Form 10-Q for the quarter-ending December 31, 2020.
The Company has established a governance structure to implement CECL and has developed methodologies to be used upon adoption. At September 30, 2020, loan and lease portfolios totaled $3.32 billion with a corresponding allowance for loan and lease losses (ALLL) of $56.2 million under current GAAP. Based on parallel runs of the CECL process that were performed in conjunction with the current ALLL process, the Company estimates that the adoption of CECL will result in an allowance for credit losses (ACL) that is larger than the current ALLL amount by $12.0 million to $13.0 million in total for all portfolios. A portion of this increase is a result of new requirements to record ACL related to acquired loans and leases, regardless of any credit mark recorded. Under current GAAP, credit marks are included in the determination of the fair value adjustments reflected as a discount to the carrying value of the loans, and an ALLL is not recorded on acquired loans and leases until there is evidence of credit deterioration post acquisition. However, upon adoption of CECL, an ACL is recorded for all acquired loans and leases based on the lifetime loss concept. The remaining credit and interest mark from acquisition accounting as of September 30, 2020 will continue to accrete over the life of the loan or lease but will no longer be considered when estimating the ACL for remaining acquired loans and leases upon CECL adoption.

The adoption of CECL will also result in an increase in the liability for off-balance sheet credit exposures between $0.8 million and $0.9 million. For other assets within the scope of the standard such as debt securities held-to-maturity and other receivables, management expects the impact from CECL to be inconsequential.

The Company estimates a cumulative tax effected adjustment to record ACL and to increase the off-balance sheet credit exposure liability results in a reduction to retained earnings of $10.0 million to $11.0 million. Management is finalizing its review of certain asset-specific risk characteristics. Management is also evaluating financial statement and disclosure impacts as well as determining whether to elect to utilize the three-year phase-in period for regulatory impact of CECL. As the Corporation finalizes the implementation of the standard in the first quarter of fiscal year 2021, final decisions by management will result in the specific October 1, 2020 ACL impact being established.

The initial increase to the Company’s ALLL and liability for off-balance sheet credit exposures will be recorded as an adjustment to beginning of the year retained earnings. Post adoption, as loans and leases are added to the portfolio, the Company expects higher levels of ACL determined by CECL assumptions, resulting in accelerated recognition of provision for credit losses, as compared to historical results.

ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework – Changes to the Disclosure Requirements for Fair Value Measurements. This ASU modifies the disclosure requirements on fair value measurements in Topic 820, including the removal, modification to, and addition of certain disclosure requirements. This ASU will be effective for fiscal years beginning after December 15, 2019 with early adoption permitted. The majority of the disclosure changes are to be applied on a prospective basis. The Company will adopt this ASU effective October 1, 2020. Although this ASU impacts the Company’s fair value disclosures, no additional impact to the Consolidated Financial Statements is expected.

ASU 2018-17, Consolidation (Topic 810) – Targeted Improvements to Related Party Guidance for Variable Interest Entities. The relevant amendments in this ASU provide updated guidance when determining whether a decision-making fee is a variable interest and requires reporting entities to consider indirect interest held through related parties under common control on a proportional basis rather than as the equivalent of a direct interest in its entirety. The result of these amendments is likely more decision makers not having a variable interest through their decision-making arrangements. These amendments will also create alignment between determining whether a decision-making fee is a variable interest and determining whether a reporting entity within a related party group is the primary beneficiary of a VIE. This ASU is effective for fiscal years beginning after December 15, 2019. The Company does not expect a material impact on the Consolidated Financial Statements.
ASU 2019-12, Income Taxes (Topic 740) – Simplifying the Accounting for Income Taxes. The amendments in this ASU are intended to simplify the accounting for income taxes by removing certain exceptions to the general rules found in Topic 740-Income Taxes. The majority of the amendments are to be applied on a prospective basis. This ASU is effective for fiscal years beginning December 15, 2021. The Company is currently evaluating the impact of this guidance on the consolidated financial statements.

ASU 2020-04, Reference Rate Reform (Topic 848) – Facilitation of the Effects of Reference Rate Reform on Financial Reporting. The amendments in this ASU provide optional expedients and exceptions to applying GAAP to contracts, hedging relationships and other transactions impacted by reference rate reform if certain criteria are met. The amendments include a one-time sale or transfer election of held-to-maturity debt securities impacted by reference rate reform. The amendments in this ASU are effective upon issuance through December 31, 2022. The Company is currently evaluating the impact of this guidance on the consolidated financial statements.
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Sep. 30, 2020
Accounting Policies [Abstract]  
Schedule of Summarized Financial Information of Variable Interest Entities
(Dollars in Thousands)September 30, 2020
Cash and cash equivalents$1,480 
Loans and leases124,869 
Allowance for loan and lease losses(557)
Accrued interest receivable724 
Rental equipment, net— 
Foreclosed real estate and repossessed assets952 
Other assets4,006 
Total assets131,474 
Accrued expenses and other liabilities2,132 
Noncontrolling interest3,603 
Net assets less noncontrolling interest$125,739 
v3.20.2
SIGNIFICANT EVENTS (Tables)
 12 Months Ended
Sep. 30, 2020
Unusual or Infrequent Items, or Both [Abstract]  
Schedule of Active COVID-19 Related Modifications
The table below presents the outstanding balance of active COVID-19 related modifications by type and category.
September 30, 2020
(Dollars in Thousands)COVID-19 Related Payment DeferralsOther COVID-19 Related Modifications
National Lending
Term lending$26,559 $— 
Asset based lending3,078 4,846 
Factoring— 18,434 
Lease financing5,896 — 
Insurance premium finance230 — 
SBA/USDA7,724 — 
Other commercial finance69 — 
Commercial finance43,556 23,280 
Consumer credit products1,574 — 
Other consumer finance4,223 — 
Consumer finance5,797 — 
Total National Lending49,353 23,280 
Community Banking
Commercial real estate and operating120,695 — 
Consumer one-to-four family real estate and other— — 
Total Community Banking120,695 — 
Total loans and leases170,048 23,280 
Rental equipment— — 
Total COVID-19 related modifications$170,048 $23,280 
v3.20.2
DIVESTITURES (Tables)
 12 Months Ended
Sep. 30, 2020
Discontinued Operations and Disposal Groups [Abstract]  
Disposal Groups, Including Discontinued Operations The Company has summarized the results of the transaction below.
(Dollars in Thousands)Fair Value at
February 29, 2020
Cash and cash equivalents$2,504 
Loans268,584 
Premises, furniture and equipment4,945 
Other assets1,250 
Total assets$277,283 
Deposits$290,493 
Other liabilities1,720 
Total liabilities$292,213 
Net assets$(14,930)
Purchase price4,345 
Gain on sale$19,275 
The Company has summarized the Community Bank division results for the three months and fiscal year ended September 30, 2020 below.

(Dollars in Thousands)
Community Bank Sold(1)
Community Bank Retained(2)
Total Community Bank
Three Months Ended September 30, 2020
Net interest income$— $9,045 $9,045 
(Reversal) Provision for loan and lease losses(2,470)4,370 1,900 
Noninterest income— 5 5 
Noninterest expense327 2,646 2,973 
Net income (loss) before income tax expense$2,143 $2,034 $4,177 
Fiscal Year Ended September 30, 2020
Net interest income$2,512 $34,393 $36,905 
(Reversal) Provision for loan and lease losses(4,711)18,891 14,180 
Noninterest income19,694 (3,468)16,226 
Noninterest expense5,282 7,759 13,041 
Net income (loss) before income tax expense$21,635 $4,275 $25,910 
(1) Reflects the activity of the assets and liabilities included in the disposal of the Community Bank division through September 30, 2020.
(2) Reflects the activity of the retained Community Bank loan portfolio as of September 30, 2020.
v3.20.2
SECURITIES (Tables)
 12 Months Ended
Sep. 30, 2020
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale ("AFS") and held to maturity ("HTM") debt securities are presented below. 
(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2020
Debt securities AFS
SBA securities$159,722 $5,391 $(158)$164,955 
Obligation of states and political subdivisions825 16 — 841 
Non-bank qualified obligations of states and political subdivisions314,819 8,978 (23)323,774 
Asset-backed securities329,139 2,015 (6,229)324,925 
Mortgage-backed securities439,879 14,567 (839)453,607 
Total debt securities AFS$1,244,384 $30,967 $(7,249)$1,268,102 


(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2019
Debt securities AFS
SBA securities$182,327 $3,655 $— $185,982 
Obligation of states and political subdivisions858 16 — 874 
Non-bank qualified obligations of states and political subdivisions396,430 5,030 (903)400,557 
Asset-backed securities305,603 262 (3,331)302,534 
Mortgage-backed securities378,670 5,731 (1,855)382,546 
Total debt securities AFS1,263,888 14,694 (6,089)1,272,493 
Securities Held to Maturity
(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2020
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$87,183 $1,040 $(29)$88,194 
Mortgage-backed securities5,427 124 — 5,551 
Total HTM securities$92,610 $1,164 $(29)$93,745 

(Dollars in Thousands)Amortized CostGross Unrealized GainsGross Unrealized (Losses)Fair Value
At September 30, 2019
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$127,582 $108 $(1,403)$126,287 
Mortgage-backed securities7,182 14 (13)7,183 
Total HTM securities$134,764 $122 $(1,416)$133,470 
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, were as follows: 
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2020
Debt securities AFS
SBA securities$32,257 $(102)$9,875 $(56)$42,132 $(158)
Non-bank qualified obligations of states and political subdivisions6,265 (6)3,103 (17)9,368 (23)
Asset-backed securities106,474 (1,089)178,686 (5,140)285,160 (6,229)
Mortgage-backed securities138,338 (839)— — 138,338 (839)
Total debt securities AFS$283,334 $(2,036)$191,664 $(5,213)$474,998 $(7,249)
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2019
Debt securities AFS
SBA securities$10,262 $— $— $— $10,262 $— 
Non-bank qualified obligations of states and political subdivisions66,326 (177)55,428 (726)121,754 (903)
Asset-backed securities158,176 (1,823)93,259 (1,508)251,435 (3,331)
Mortgage-backed securities1,713 (1)89,634 (1,854)91,347 (1,855)
Total debt securities AFS$236,477 $(2,001)$238,321 $(4,088)$474,798 $(6,089)
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position
LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2020
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$7,397 $(9)$3,637 $(20)$11,034 $(29)
Total debt securities HTM$7,397 $(9)$3,637 $(20)$11,034 $(29)

LESS THAN 12 MONTHSOVER 12 MONTHSTOTAL
(Dollars in Thousands)Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)		Fair
Value		Unrealized
(Losses)
At September 30, 2019
Debt securities HTM
Non-bank qualified obligations of states and political subdivisions$5,967 $(6)$109,368 $(1,397)$115,335 $(1,403)
Mortgage-backed securities1,471 — 1,803 (13)3,274 (13)
Total debt securities HTM$7,438 $(6)$111,171 $(1,410)$118,609 $(1,416)
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 MBS because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Therefore, MBS are not included in the maturity categories in the following maturity summary. The expected maturities of certain SBA securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.
Securities AFS at Fair Value
(Dollars in Thousands)Amortized CostFair Value
At September 30, 2020
Due in one year or less$1,385 $1,398 
Due after one year through five years20,805 21,769 
Due after five years through ten years32,441 34,025 
Due after ten years749,874 757,303 
 804,505 814,495 
Mortgage-backed securities439,879 453,607 
Total securities AFS, at fair value$1,244,384 $1,268,102 

(Dollars in Thousands)Amortized CostFair Value
At September 30, 2019
Due in one year or less$— $— 
Due after one year through five years16,749 17,143 
Due after five years through ten years50,263 51,840 
Due after ten years818,206 820,964 
 885,218 889,947 
Mortgage-backed securities378,670 382,546 
Total securities AFS, at fair value$1,263,888 $1,272,493 

Securities HTM at Fair Value
(Dollars in Thousands)Amortized CostFair Value
At September 30, 2020
Due after ten years$87,183 $88,194 
 87,183 88,194 
Mortgage-backed securities5,427 5,551 
Total securities HTM, at cost$92,610 $93,745 

(Dollars in Thousands)Amortized CostFair Value
At September 30, 2019
Due after ten years$127,582 $126,287 
 127,582 126,287 
Mortgage-backed securities7,182 7,183 
Total securities HTM, at cost$134,764 $133,470 
Summary of Activities Related to Sale of Securities Available for Sale
Activity related to the sale of securities available for sale is summarized below. 
Fiscal Year ended202020192018
(Dollars in Thousands)
Available For Sale
   Proceeds from sales$4,904 $755,616 $596,758 
   Gross gains on sales51 6,006 2,551 
   Gross losses on sales— 5,277 10,728 
 Net gain (loss) on securities AFS$51 $729 $(8,177)
v3.20.2
LOANS AND LEASES, NET (Tables)
 12 Months Ended
Sep. 30, 2020
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Loans and leases consist of the following:
(Dollars in Thousands)September 30, 2020September 30, 2019
National Lending
Term lending(1)
$805,323 $641,742 
Asset based lending(1)
182,419 250,465 
Factoring281,173 296,507 
Lease financing(1)
281,084 177,915 
Insurance premium finance337,940 361,105 
SBA/USDA(2)
318,387 88,831 
Other commercial finance101,658 99,665 
Commercial finance2,307,984 1,916,230 
Consumer credit products89,809 106,794 
Other consumer finance134,342 161,404 
Consumer finance224,151 268,198 
Tax services3,066 2,240 
Warehouse finance293,375 262,924 
Total National Lending2,828,576 2,449,592 
Community Banking
Commercial real estate and operating457,371 883,932 
Consumer one-to-four family real estate and other16,486 259,425 
Agricultural real estate and operating11,707 58,464 
Total Community Banking485,564 1,201,821 
Total loans and leases3,314,140 3,651,413 
Net deferred loan origination fees8,625 7,434 
Total gross loans and leases3,322,765 3,658,847 
Allowance for loan and lease losses(56,188)(29,149)
Total loans and leases, net(3)
$3,266,577 $3,629,698 
(1) The Company has updated the presentation of its loan and lease table beginning in the fiscal 2020 first quarter. The new presentation includes a new category called term lending. Certain balances previously included in the asset based lending and lease financing categories have been reclassified into the new term lending category during the fiscal 2020 first quarter. Prior period balances have been conformed to the new presentation.
(2) The Company is participating in the Paycheck Protection Program which is being administered by the Small Business Administration ("SBA"). As of September 30, 2020, the Company had 689 loans outstanding with a total of $219.0 million in loan balances that were originated as part of the program.
(3) As of September 30, 2020, the remaining balance of acquired loans and leases from the acquisition of Crestmark Bancorp, Inc. ("Crestmark") and its bank subsidiary, Crestmark Bank (the "Crestmark Acquisition") was $149.1 million and the remaining balances of the credit and interest rate mark discounts related to the acquired loans and leases held for investment were $2.8 million and $2.3 million, respectively. On August 1, 2018, the Company acquired loans and leases from the Crestmark Acquisition totaling $1.06 billion and recorded related credit and interest rate mark discounts of $12.3 million and $6.0 million, respectively.
Schedule of Loans Purchased and Sold by Portfolio Segment
Loans purchased and sold by portfolio segment, including participation interests, for the fiscal years ended September 30, 2020 and 2019 were as follows:
Fiscal Year Ended
(Dollars in Thousands)September 30, 2020September 30, 2019
Loans Purchased
Loans held for sale:
Total National Lending$— $15,443 
Loans held for investment:
Total National Lending132,530 235,918 
Total Community Banking18,905 26,704 
Total purchases151,435 278,065 
Loans Sold
Loans held for sale:
Total National Lending183,508 121,071 
Total Community Banking407,296 — 
Loans held for investment:
Total Community Banking9,991 13,069 
Total sales$600,795 $134,140 
Sales-type Lease, Lease Income
The net investment in direct financing and sales-type leases was comprised of the following:
 September 30, 2020September 30, 2019
(Dollars in Thousands)
Carrying Amount$299,487 $191,733 
Unguaranteed residual assets17,203 13,353 
Unamortized initial direct costs2,078 1,790 
Unearned income(35,606)(27,171)
Total investment in direct financing and sales-type leases$283,162 $179,705 
Operating Lease, Lease Income
The components of total lease income were as follows:
Fiscal Year Ended
(Dollars in Thousands)September 30, 2020
Interest income - loans and leases
Interest income on net investments in direct financing and sales-type leases$18,300 
Leasing and equipment finance noninterest income
Lease income from operating lease payments44,319 
Profit (loss) recorded on commencement date on sales-type leases2,152 
Other(1)
4,357 
Total leasing and equipment finance noninterest income50,828 
Total lease income$69,128 
(1) Other leasing and equipment finance noninterest income consists of gains (losses) on sales of leased equipment, fees and service charges on leases and gains (losses) on sales of leases.
Sales-type and Direct Financing Leases, Lease Receivable, Maturity
Undiscounted future minimum lease payments receivable for direct financing and sales-type leases and a reconciliation to the carrying amount recorded were as follows:
(Dollars in Thousands)As of September 30, 2020
2021$107,558 
202287,775 
202358,906 
202433,059 
202510,097 
Thereafter2,092 
Equipment under leases not yet commenced— 
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases299,487 
Third-party residual value guarantees— 
Total carrying amount of direct financing and sales-type leases$299,487 
Annual Activity in Allowance for Loan Losses, Allowance for Loan Losses and Recorded Investment in Loans
Annual activity in the allowance for loan and lease losses was as follows: 
Fiscal Year Ended September 30,202020192018
(Dollars in Thousands)
Beginning balance$29,149 $13,040 $7,534 
Provision for loan and lease losses64,776 55,650 29,433 
Recoveries4,024 3,313 2,037 
Charge-offs(41,761)(42,854)(25,964)
Ending balance$56,188 $29,149 $13,040 

Activity in the allowance for loan and lease losses and balances of loans and leases by portfolio segment for the fiscal years ended September 30, 2020 and 2019 were as follows:
Allowance for loan and lease losses:Beginning balanceProvision (recovery) for loan and lease lossesCharge-offsRecoveriesEnding balance
Fiscal Year Ended September 30, 2020
National Lending(Dollars in Thousands)
Term lending$5,533 $19,796 $(10,458)$340 $15,211 
Asset based lending2,437 (1,036)(42)47 1,406 
Factoring3,261 (245)(915)926 3,027 
Lease financing1,275 6,105 (728)371 7,023 
Insurance premium finance1,024 2,489 (2,004)620 2,129 
SBA/USDA383 2,688 (2,131)— 940 
Other commercial finance683 (501)— — 182 
Commercial finance14,596 29,296 (16,278)2,304 29,918 
Consumer credit products1,044 (199)— — 845 
Other consumer finance5,118 (538)(2,649)890 2,821 
Consumer finance6,162 (737)(2,649)890 3,666 
Tax services— 22,006 (22,834)830 2 
Warehouse finance263 31 — — 294 
Total National Lending21,021 50,596 (41,761)4,024 33,880 
Community Banking
Commercial real estate and operating6,208 15,659 — — 21,867 
Consumer one-to-four family real estate and other1,053 (755)— — 298 
Agricultural real estate and operating867 (724)— — 143 
Total Community Banking8,128 14,180 — — 22,308 
Total$29,149 $64,776 $(41,761)$4,024 $56,188 
Allowance for loan and lease losses:Beginning balanceProvision (recovery) for loan and lease lossesCharge-offsRecoveriesEnding balance
Fiscal Year Ended September 30, 2019
National Lending(Dollars in Thousands)
Term lending$89 $8,460 $(4,581)$1,565 $5,533 
Asset based lending47 2,388 (37)39 2,437 
Factoring64 5,849 (2,725)73 3,261 
Lease financing31 1,824 (1,342)762 1,275 
Insurance premium finance1,031 2,361 (2,689)321 1,024 
SBA/USDA13 370 — — 383 
Other commercial finance28 655 — — 683 
Commercial finance1,302 21,907 (11,373)2,760 14,596 
Consumer credit products785 259 — — 1,044 
Other consumer finance2,820 8,563 (6,346)81 5,118 
Consumer finance3,605 8,822 (6,346)81 6,162 
Tax services— 24,873 (25,095)222 — 
Warehouse finance65 198 — — 263 
Total National Lending4,972 55,800 (42,814)3,063 21,021 
Community Banking
Commercial real estate and operating6,220 (12)— — 6,208 
Consumer one-to-four family real estate and other632 461 (40)— 1,053 
Agricultural real estate and operating1,216 (599)— 250 867 
Total Community Banking8,068 (150)(40)250 8,128 
Total$13,040 $55,650 $(42,854)$3,313 $29,149 
The following tables provide details regarding the allowance for loan and lease losses and balances by type of allowance as of September 30, 2020 and 2019.
AllowanceLoans and Leases
Recorded InvestmentEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotalEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotal
Fiscal Year Ended September 30, 2020
National Lending(Dollars in Thousands)
Term lending$3,155 $12,056 $15,211 $26,085 $779,238 $805,323 
Asset based lending355 1,051 1,406 5,317 177,102 182,419 
Factoring274 2,753 3,027 5,071 276,102 281,173 
Lease financing1,194 5,829 7,023 4,697 276,387 281,084 
Insurance premium finance— 2,129 2,129 — 337,940 337,940 
SBA/USDA(1)
— 940 940 1,436 316,951 318,387 
Other commercial finance— 182 182 — 101,658 101,658 
Commercial finance4,978 24,940 29,918 42,606 2,265,378 2,307,984 
Consumer credit products— 845 845 — 89,809 89,809 
Other consumer finance— 2,821 2,821 1,987 132,355 134,342 
Consumer finance— 3,666 3,666 1,987 222,164 224,151 
Tax services— 2 2 — 3,066 3,066 
Warehouse finance— 294 294 — 293,375 293,375 
Total National Lending4,978 28,902 33,880 44,593 2,783,983 2,828,576 
Community Banking
Commercial real estate and operating141 21,726 21,867 160 457,211 457,371 
Consumer one-to-four family real estate and other— 298 298 104 16,382 16,486 
Agricultural real estate and operating— 143 143 6,421 5,286 11,707 
Total Community Banking141 22,167 22,308 6,685 478,879 485,564 
Total$5,119 $51,069 $56,188 $51,278 $3,262,862 $3,314,140 
(1) The ending balance collectively evaluated for impairment includes $219.0 million of loan balances that were originated as part of the Company's participation in the PPP. No reserve was applied to these loan balances as of September 30, 2020 as the PPP is administered by the SBA and are fully guaranteed.
AllowanceLoans and Leases
Recorded InvestmentEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotalEnding balance: individually evaluated for impairmentEnding balance: collectively evaluated for impairmentTotal
Fiscal Year Ended September 30, 2019
National Lending(Dollars in Thousands)
Term lending$450 $5,083 $5,533 $19,568 $622,174 $641,742 
Asset based lending— 2,437 2,437 378 250,087 250,465 
Factoring1,262 1,999 3,261 3,824 292,683 296,507 
Lease financing112 1,163 1,275 1,213 176,702 177,915 
Insurance premium finance— 1,024 1,024 — 361,105 361,105 
SBA/USDA51 332 383 3,841 84,990 88,831 
Other commercial finance— 683 683 — 99,665 99,665 
Commercial finance1,875 12,721 14,596 28,824 1,887,406 1,916,230 
Consumer credit products— 1,044 1,044 — 106,794 106,794 
Other consumer finance— 5,118 5,118 1,472 159,932 161,404 
Consumer finance— 6,162 6,162 1,472 266,726 268,198 
Tax services— — — — 2,240 2,240 
Warehouse finance— 263 263 — 262,924 262,924 
Total National Lending1,875 19,146 21,021 30,296 2,419,296 2,449,592 
Community Banking
Commercial real estate and operating— 6,208 6,208 258 883,674 883,932 
Consumer one-to-four family real estate and other— 1,053 1,053 100 259,325 259,425 
Agricultural real estate and operating— 867 867 2,985 55,479 58,464 
Total Community Banking— 8,128 8,128 3,343 1,198,478 1,201,821 
Total$1,875 $27,274 $29,149 $33,639 $3,617,774 $3,651,413 
Asset Classification of Loans
The asset classification of loans and leases were as follows:
Asset ClassificationPassWatchSpecial MentionSubstandardDoubtfulTotal
Fiscal Year Ended September 30, 2020
National Lending(Dollars in Thousands)
Term lending$725,101 $29,637 $24,501 $21,249 $4,835 $805,323 
Asset based lending102,013 62,512 12,577 5,317 — 182,419 
Factoring217,245 45,200 13,657 5,071 — 281,173 
Lease financing264,700 8,879 2,808 4,148 549 281,084 
Insurance premium finance336,364 284 222 701 369 337,940 
SBA/USDA308,549 8,328 74 1,436 — 318,387 
Other commercial finance100,727 931 — — — 101,658 
Commercial finance2,054,699 155,771 53,839 37,922 5,753 2,307,984 
Warehouse finance293,375 — — — — 293,375 
Total National Lending2,348,074 155,771 53,839 37,922 5,753 2,601,359 
Community Banking
Commercial real estate and operating336,236 98,295 4,049 18,211 580 457,371 
Consumer one-to-four family real estate and other15,648 41 609 188 — 16,486 
Agricultural real estate and operating1,526 — 4,930 5,251 — 11,707 
Total Community Banking353,410 98,336 9,588 23,650 580 485,564 
Total loans and leases$2,701,484 $254,107 $63,427 $61,572 $6,333 $3,086,923 

Asset ClassificationPassWatchSpecial MentionSubstandardDoubtfulTotal
Fiscal Year Ended September 30, 2019
National Lending(Dollars in Thousands)
Term lending$585,382 $— $36,792 $19,024 $544 $641,742 
Asset based lending192,427 — 57,660 378 — 250,465 
Factoring256,048 — 36,635 3,824 — 296,507 
Lease financing171,785 — 4,917 1,213 — 177,915 
Insurance premium finance361,105 — — — — 361,105 
SBA/USDA76,609 — 8,381 3,841 — 88,831 
Other commercial finance99,057 — 608 — — 99,665 
Commercial finance1,742,413 — 144,993 28,280 544 1,916,230 
Warehouse finance262,924 — — — — 262,924 
Total National Lending2,005,337 — 144,993 28,280 544 2,179,154 
Community Banking
Commercial real estate and operating875,933 1,494 2,884 3,621 — 883,932 
Consumer one-to-four family real estate and other257,575 946 708 196 — 259,425 
Agricultural real estate and operating39,409 4,631 5,876 8,548 — 58,464 
Total Community Banking1,172,917 7,071 9,468 12,365 — 1,201,821 
Total loans and leases$3,178,254 $7,071 $154,461 $40,645 $544 $3,380,975 
Past Due Loans
Past due loans and leases were as follows:
Accruing and Non-accruing Loans and LeasesNon-performing Loans and Leases
Fiscal Year Ended September 30, 202030-59 Days
Past Due		60-89 Days
Past Due		>
89 Days Past Due		Total Past
Due		CurrentTotal Loans and Leases
Receivable		> 89 Days Past Due and AccruingNon-accrual balanceTotal
(Dollars in Thousands)
Loans held for sale$— $— $— $— $183,577 $183,577 $— $— $— 
National Lending
Term lending$11,900 $3,851 $6,390 $22,141 $783,182 $805,323 $266 $16,274 $16,540 
Asset based lending17 — — 17 182,402 182,419 — — — 
Factoring— — — — 281,173 281,173 — 1,096 1,096 
Lease financing194 9,746 6,882 16,822 264,262 281,084 4,344 3,583 7,927 
Insurance premium finance1,227 748 2,364 4,339 333,601 337,940 2,364 — 2,364 
SBA/USDA— — 1,027 1,027 317,360 318,387 427 600 1,027 
Other commercial finance— — — — 101,658 101,658 — — — 
Commercial finance13,338 14,345 16,663 44,346 2,263,638 2,307,984 7,401 21,553 28,954 
Consumer credit products377 358 499 1,233 88,576 89,809 499 — 499 
Other consumer finance600 536 373 1,509 132,833 134,342 373 — 373 
Consumer finance977 894 872 2,743 221,408 224,151 872 — 872 
Tax services— — 1,743 1,743 1,323 3,066 1,743 — 1,743 
Warehouse finance— — — — 293,375 293,375 — — — 
Total National Lending14,315 15,239 19,278 48,832 2,779,744 2,828,576 10,016 21,553 31,569 
Community Banking
Commercial real estate and operating— — 630 630 456,741 457,371 50 580 630 
Consumer one-to-four family real estate and other905 114 50 1,069 15,417 16,486 — 50 50 
Agricultural real estate and operating— — 1,769 1,769 9,938 11,707 — 1,769 1,769 
Total Community Banking905 114 2,449 3,468 482,096 485,564 50 2,399 2,449 
Total loans and leases held for investment15,220 15,353 21,727 52,300 3,261,840 3,314,140 10,066 23,952 34,018 
Total loans and leases$15,220 $15,353 $21,727 $52,300 $3,445,417 $3,497,717 $10,066 $23,952 $34,018 
Accruing and Non-accruing Loans and LeasesNon-performing Loans and Leases
Fiscal Year Ended September 30, 201930-59 Days
Past Due		60-89 Days
Past Due		>
89 Days Past Due		Total Past
Due		CurrentTotal Loans and Leases
Receivable		> 89 Days Past Due and AccruingNon-accrual balanceTotal
(Dollars in Thousands)
Loans held for sale$1,122 $755 $964 $2,841 $145,936 $148,777 $964 $— $964 
National Lending
Term lending2,162 910 14,098 17,170 624,572 641,742 2,241 12,146 14,387 
Asset based lending— — — — 250,465 250,465 — — — 
Factoring— — — — 296,507 296,507 — 1,669 1,669 
Lease financing1,160 1,134 1,736 4,030 173,885 177,915 1,530 308 1,838 
Insurance premium finance1,999 2,881 3,807 8,687 352,418 361,105 3,807 — 3,807 
SBA/USDA83 — 255 338 88,493 88,831 — 255 255 
Other commercial finance— — — — 99,665 99,665 — — — 
Commercial finance5,404 4,925 19,896 30,225 1,886,005 1,916,230 7,578 14,378 21,956 
Consumer credit products627 557 239 1,423 105,371 106,794 239 — 239 
Other consumer finance932 1,005 1,078 3,015 158,389 161,404 1,078 — 1,078 
Consumer finance1,559 1,562 1,317 4,438 263,760 268,198 1,317 — 1,317 
Tax services— — 2,240 2,240 — 2,240 2,240 — 2,240 
Warehouse finance— — — — 262,924 262,924 — — — 
Total National Lending6,963 6,487 23,453 36,903 2,412,689 2,449,592 11,135 14,378 25,513 
Community Banking
Commercial real estate and operating565 — — 565 883,367 883,932 — — — 
Consumer one-to-four family real estate and other458 — 9 467 258,958 259,425 — 44 44 
Agricultural real estate and operating49 — — 49 58,415 58,464 — — — 
Total Community Banking1,072 — 9 1,081 1,200,740 1,201,821 — 44 44 
Total loans and leases held for investment$8,035 $6,487 $23,462 $37,984 $3,613,429 $3,651,413 $11,135 $14,422 $25,557 
Total loans and leases$9,157 $7,242 $24,426 $40,825 $3,759,365 $3,800,190 $12,099 $14,422 $26,521 
Impaired Loans
Impaired loans and leases at September 30, 2020 and 2019 were as follows:
September 30, 2020Recorded
Balance		Unpaid Principal
Balance		Specific
Allowance
Loans and leases without a specific valuation allowance
National Lending(Dollars in Thousands)
Term lending$17,349 $18,823 $— 
Asset based lending3,914 3,914 — 
Factoring3,892 4,967 — 
Lease financing1,797 1,805 — 
SBA/USDA1,436 2,263 — 
Commercial finance28,388 31,772 — 
Other consumer finance1,987 2,104 — 
Consumer finance1,987 2,104 — 
Total National Lending30,375 33,876 — 
Community Banking
Consumer one-to-four family real estate and other104 104 — 
Agricultural real estate and operating6,421 6,421 — 
Total Community Banking6,525 6,525 — 
Total$36,900 $40,401 $— 
Loans and leases with a specific valuation allowance
National Lending
Term lending$8,736 $8,736 $3,155 
Asset based lending1,403 1,403 355 
Factoring1,179 1,191 274 
Lease financing2,900 2,900 1,194 
Commercial finance14,218 14,230 4,978 
Total National Lending14,218 14,230 4,978 
Community Banking
Commercial real estate and operating160 160 141 
Total Community Banking160 160 141 
Total$14,378 $14,390 $5,119 
September 30, 2019Recorded
Balance		Unpaid Principal
Balance		Specific
Allowance
Loans and leases without a specific valuation allowance
National Lending(Dollars in Thousands)
Term lending$12,644 $13,944 $— 
Asset based lending378 378 — 
Factoring1,563 2,638 — 
Lease financing1,062 1,062 — 
SBA/USDA2,595 2,595 — 
Commercial finance18,242 20,617 — 
Other consumer finance1,472 1,539 — 
Consumer finance1,472 1,539 — 
Total National Lending19,714 22,156 — 
Community Banking
Commercial real estate and operating258 258 — 
Consumer one-to-four family real estate and other100 100 — 
Agricultural real estate and operating2,985 2,985 — 
Total Community Banking3,343 3,343 — 
Total$23,057 $25,499 $— 
Loans and leases with a specific valuation allowance
National Lending
Term lending$6,924 $6,951 $450 
Factoring2,261 3,601 1,262 
Lease financing151 151 112 
SBA/USDA1,246 1,246 51 
Commercial finance10,582 11,949 1,875 
Total National Lending10,582 11,949 1,875 
Total$10,582 $11,949 $1,875 
The following table provides the average recorded investment in impaired loans and leases for the fiscal years ended:
Fiscal Year Ended September 30,
20202019
(Dollars in Thousands)Average
Recorded
Investment		Recognized Interest IncomeAverage
Recorded
Investment		Recognized Interest Income
National Lending
Term lending$26,126 $386 $6,119 $344 
Asset based lending1,339 — 1,347 — 
Factoring4,075 13 4,751 5 
Lease financing3,370 16 3,313 17 
SBA/USDA3,164 — 639 — 
Commercial finance38,074 415 16,169 $366 
Other consumer finance1,860 143 1,207 67 
Consumer finance1,860 143 1,207 67 
Total National Lending39,934 558 17,376 433 
Community Banking
Commercial real estate and operating466 27 269 14 
Consumer one-to-four family real estate and other114 10 172 6 
Agricultural real estate and operating2,949 (74)1,483 107 
Total Community Banking3,529 (37)1,924 127 
Total loans and leases$43,463 $521 $19,300 $560 
v3.20.2
EARNINGS PER COMMON SHARE (Tables)
 12 Months Ended
Sep. 30, 2020
Earnings Per Share [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted earnings per share is presented below.
For the Fiscal Years Ended September 30,
(Dollars in Thousands, Except Share and Per Share Data)202020192018
Basic income per common share:
Net income attributable to Meta Financial Group, Inc.$104,720 $97,004 $51,620 
Weighted average common shares outstanding35,651,709 38,880,919 30,737,499 
Basic income per common share$2.94 $2.49 $1.68 
Diluted income per common share:
Net income attributable to Meta Financial Group, Inc.$104,720 $97,004 $51,620 
Weighted average common shares outstanding35,651,709 38,880,919 30,737,499 
Outstanding options - based upon the two-class method— 40,718 115,551 
Weighted average diluted common shares outstanding35,651,709 38,921,637 30,853,050 
Diluted income per common share$2.94 $2.49 $1.67 
v3.20.2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
Summary of Year-End Premises and Equipment
Fiscal year-end premises and equipment were as follows:
(Dollars in Thousands)September 30, 2020September 30, 2019
Land$1,354 $2,932 
Buildings20,170 30,906 
Furniture, fixtures, and equipment67,302 61,216 
 88,826 95,054 
Less: accumulated depreciation and amortization(47,218)(49,122)
Net book value$41,608 $45,932 
Rental equipment consists of the following:
September 30, 2020September 30, 2019
(Dollars in Thousands)
Computers and IT networking equipment$15,926 $37,352 
Motor vehicles and other52,913 23,884 
Other furniture and equipment74,197 77,140 
Solar panels and equipment118,808 116,505 
Total261,844 254,881 
Accumulated depreciation(57,601)(46,344)
Unamortized initial direct costs1,721 — 
Net book value$205,964 $208,537 
v3.20.2
RENTAL EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2020
Property, Plant and Equipment [Abstract]  
Summary of Rental Equipment
Fiscal year-end premises and equipment were as follows:
(Dollars in Thousands)September 30, 2020September 30, 2019
Land$1,354 $2,932 
Buildings20,170 30,906 
Furniture, fixtures, and equipment67,302 61,216 
 88,826 95,054 
Less: accumulated depreciation and amortization(47,218)(49,122)
Net book value$41,608 $45,932 
Rental equipment consists of the following:
September 30, 2020September 30, 2019
(Dollars in Thousands)
Computers and IT networking equipment$15,926 $37,352 
Motor vehicles and other52,913 23,884 
Other furniture and equipment74,197 77,140 
Solar panels and equipment118,808 116,505 
Total261,844 254,881 
Accumulated depreciation(57,601)(46,344)
Unamortized initial direct costs1,721 — 
Net book value$205,964 $208,537 
Schedule of Future Minimum Rental Payments for Operating Leases
(Dollars in Thousands)September 30, 2020
2021$30,509 
202226,461 
202322,737 
202416,609 
202511,834 
Thereafter17,797 
Total undiscounted future minimum lease payments receivable for operating leases$125,947 
v3.20.2
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS (Tables)
 12 Months Ended
Sep. 30, 2020
Real Estate [Abstract]  
Schedule of Foreclosed Real Estate and Repossessed Assets
The following table provides an analysis of changes in foreclosed real estate and repossessed assets:
Fiscal Year Ended September 30,
(Dollars in Thousands)20202019
Balance, beginning of period$29,494 $31,638 
Additions9,983 190 
Reductions:
Write-downs568 432 
Net proceeds from sale23,992 1,917 
Gain (loss) on sale(4,960)15 
   Total reductions29,520 2,334 
Balance, ending of period$9,957 $29,494 
Schedule of Other Real Estate The following table is a summary of the sale transaction, as reflected in the Company's financial statements:
September 30, 2020
(Dollars in Thousands)
Purchase price$23,083 
Carrying value of OREO28,122 
Loss on sale(5,039)
Deferred income recognized1,096 
  Net impact$(3,943)
v3.20.2
GOODWILL AND INTANGIBLE ASSETS (Tables)
 12 Months Ended
Sep. 30, 2020
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill and Intangible Assets
The changes in the carrying amount of the Company’s goodwill and intangible assets for the fiscal years ended September 30, 2020 and 2019 were as follows: 
(Dollars in Thousands)PaymentsBankingCorporate Services/OtherTotal
Goodwill
September 30, 2019$87,145 $222,360 $— $309,505 
Acquisitions— — — — 
Impairment— — — — 
September 30, 2020$87,145 $222,360 $— $309,505 
September 30, 2018$87,145 $216,125 $— $303,270 
Acquisitions— — — — 
Measurement Period Adjustments(1)
— 6,235 — 6,235 
Impairment— — — — 
September 30, 2019$87,145 $222,360 $— $309,505 
(1) The Company recognized measurement period adjustments on provisional goodwill during fiscal year 2019 related to the Crestmark Acquisition.
Schedule of Finite-Lived Intangible Assets
(Dollars in Thousands)
Trademark (1)
Non-Compete (2)
Customer Relationships (3)
All Others (4)
Total
Intangibles
Balance as of September 30, 2019$11,959 $827 $33,207 $6,817 $52,810 
Acquisitions during the period— — — 35 35 
Amortization during the period(1,058)(405)(8,874)(660)(10,997)
Write-offs during the period— — — (156)(156)
Balance as of September 30, 2020$10,901 $422 $24,333 $6,036 $41,692 
Gross carrying amount$14,624 $2,480 $82,088 $10,113 $109,305 
Accumulated amortization(3,723)(2,058)(47,507)(3,887)(57,175)
Accumulated impairment— — (10,248)(190)(10,438)
Balance as of September 30, 2020$10,901 $422 $24,333 $6,036 $41,692 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

(Dollars in Thousands)
Trademark (1)
Non-Compete (2)
Customer Relationships (3)
All Others (4)
Total
Intangibles
Balance as of September 30, 2018$12,987 $1,297 $48,455 $7,980 $70,719 
Acquisitions during the period— — — 115 115 
Amortization during the period(1,028)(470)(15,248)(965)(17,711)
Write-offs during the period— — — (313)(313)
Balance as of September 30, 2019$11,959 $827 $33,207 $6,817 $52,810 
Gross carrying amount$14,624 $2,480 $82,088 $10,703 $109,895 
Accumulated amortization(2,665)(1,653)(38,633)(3,227)(46,178)
Accumulated impairment— — (10,248)(659)(10,907)
Balance as of September 30, 2019$11,959 $827 $33,207 $6,817 $52,810 
(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.
Anticipated Future Amortization of Intangibles
The estimated amortization expense of intangible assets assumes no activities, such as acquisitions, which would result in additional amortizable intangible assets. Estimated amortization expense of intangible assets in the subsequent fiscal years at September 30, 2020 was as follows:
Fiscal Year EndedAnticipated Amortization
(Dollars in Thousands)
2021$8,548 
20226,422 
20235,104 
20244,387 
20253,830 
Thereafter13,401 
Total anticipated intangible amortization$41,692 
v3.20.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES (Tables)
 12 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Schedule of Operating Lease Payments
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities were as follows:
(Dollars in Thousands)
2021$3,742 
20223,479 
20232,799 
20242,808 
20252,755 
Thereafter15,765 
Total undiscounted future minimum lease payments 31,348 
Discount(4,275)
Total operating lease liabilities$27,073 
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the fiscal years presented below as of September 30 and thereafter.
 Fiscal Year Ended September 30,
(Dollars in Thousands)Operating
Leases		Capital
Leases
2020$3,709 $216 
20213,429 216 
20222,955 216 
20232,561 216 
20242,457 194 
Thereafter18,971 1,876 
Total leases commitments$34,082 $2,934 
Amounts representing interest $986 
Present value of net minimum lease payments 1,948 
Lease Costs
The weighted-average discount rate and remaining lease term for operating leases were as follows:

September 30, 2020
Weighted-average discount rate2.35 %
Weighted-average remaining lease term (years)11.39

The components of total lease costs for operating leases, included in occupancy and equipment noninterest expense, were as follows:
(Dollars in Thousands)Fiscal Year Ended September 30, 2020
Lease expense$3,454 
Short-term and variable lease cost496 
Sublease income(733)
Total lease cost for operating leases$3,217 
v3.20.2
TIME CERTIFICATES OF DEPOSIT (Tables)
 12 Months Ended
Sep. 30, 2020
Deposits [Abstract]  
Scheduled Maturities of Time Certificates of Deposits
At September 30, 2020, the scheduled maturities of time certificates of deposit were as follows for the fiscal years ending: 
(Dollars in Thousands)
2021$247,971 
202225,663 
2023538 
2024— 
2025— 
Total (1)
$274,172 
(1) As of September 30, 2020, the Company had $253.9 million of certificates of deposit which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition.
v3.20.2
SHORT-TERM AND LONG-TERM BORROWINGS (Tables)
 12 Months Ended
Sep. 30, 2020
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Short-Term Borrowings
September 30,20202019
(Dollars in Thousands)
Overnight federal funds purchased $— $642,000 
Repurchase agreements— 4,019 
     Total$— $646,019 
Schedule of Repurchase Agreements
An analysis of securities sold under agreements to repurchase at September 30, 2020 and 2019 follows:
September 30,20202019
(Dollars in Thousands)
Highest month-end balance$2,550 $4,306 
Average balance328 3,542 
Weighted average interest rate for the fiscal year2.00 %2.67 %
Weighted average interest rate at fiscal year end— %2.41 %
Schedule of Long-term Debt
Long-Term Borrowings
September 30,20202019
(Dollars in Thousands)
Long-term FHLB advances$— $110,000 
Trust preferred securities13,661 13,661 
Subordinated debentures (net of issuance costs)73,807 73,644 
Other long-term borrowings (1)
10,756 18,533 
     Total$98,224 $215,838 
(1) Includes $10.6 million of discounted leases and $0.1 million of capital lease obligations at September 30, 2020.
Scheduled maturities of FHLB advances
At September 30, 2020, the scheduled maturities of the Company's long-term borrowings were as follows for the fiscal years ending:
September 30,Long-term FHLB advancesTrust preferred securitiesSubordinated debenturesOther long-term borrowingsTotal
(Dollars in Thousands)
2021$— $— $— $5,442 $5,442 
2022— — — 2,735 2,735 
2023— — — 1,853 1,853 
2024— — — 726 726 
2025— — — — — 
Thereafter— 13,661 73,807 — 87,468 
Total long-term borrowings$— $13,661 $73,807 $10,756 $98,224 
v3.20.2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables)
 12 Months Ended
Sep. 30, 2020
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
Year-End ESOP Shares
Fiscal year-end ESOP shares are as follows: 
At September 30,202020192018
(Dollars in Thousands)
Allocated shares809,116 778,088 812,346 
Unearned shares— — — 
Total ESOP shares809,116 778,088 812,346 
Fair value of unearned shares$— $— $— 
v3.20.2
STOCK COMPENSATION (Tables)
 12 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [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:

Fiscal Year Ended September 30,202020192018
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $2,567, $3,230, and $3,139, respectively
$7,656 $9,716 $7,878 
Activity of Options
The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the fiscal years ended September 30, 2020 and 2019.
 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, 201959,835 $8.06 1.54$1,469 
Granted— — — — 
Exercised(59,835)8.06 1.001,011 
Forfeited or expired— — — — 
Options outstanding, September 30, 2020— $— 0$— 
Options exercisable end of fiscal year— $— 0$— 

 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, 2018155,961 $8.48 1.78$2,974 
Granted— — — — 
Exercised(93,099)8.68 — 1,842 
Forfeited or expired(3,027)10.60 — 33 
Options outstanding, September 30, 201959,835 $8.06 1.54$1,469 
Options exercisable end of fiscal year59,835 $8.06 1.54$1,469 
Activity of Nonvested (Restricted) Shares
 Number of
Shares		Weighted Average
Fair Value At Grant
(Dollars in Thousands, Except Share and Per Share Data)
Nonvested shares outstanding, September 30, 2019926,122 $29.54 
Granted191,372 32.32 
Vested(316,283)29.92 
Forfeited or expired(11,128)31.35 
Nonvested shares outstanding, September 30, 2020790,083 $30.03 

 Number of
Shares		Weighted Average
Fair Value At Grant
(Dollars in Thousands, Except Share and Per Share Data)
Nonvested shares outstanding, September 30, 20181,005,813 $29.89 
Granted315,802 25.18 
Vested(391,061)26.97 
Forfeited or expired(4,432)25.98 
Nonvested shares outstanding, September 30, 2019926,122 $29.54 
v3.20.2
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2020
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following: 
Fiscal Years Ended September 30,
(Dollars in Thousands)202020192018
Federal:
Current$3,148 $5,278 $(4,023)
Deferred(4,505)(14,831)5,895 
 (1,357)(9,553)1,872 
State:   
Current4,860 5,649 2,611 
Deferred2,158 530 634 
 7,018 6,179 3,245 
Income tax (benefit) expense$5,661 $(3,374)$5,117 
Components of Net Deferred Tax Asset (Liability)
The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities were:
September 30,
(Dollars in Thousands)20202019
Deferred tax assets:
Bad debts$13,968 $6,805 
Deferred compensation1,288 1,626 
Stock based compensation4,073 4,296 
Valuation adjustments5,343 6,596 
General business credits(1)
37,888 27,935 
Accrued expenses2,155 3,767 
Lease liability6,798 — 
Other assets3,215 3,144 
 74,728 54,169 
Deferred tax liabilities:  
Premises and equipment(2,852)(3,084)
Intangibles(2,114)(1,812)
Net unrealized gains on securities available for sale(5,964)(2,146)
Deferred income— (179)
Leased assets(35,279)(24,996)
Right-of-use assets(6,550)— 
Other liabilities(4,246)(3,068)
 (57,005)(35,285)
Net deferred tax assets$17,723 $18,884 
(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the fiscal years ended September 30, 2020 and 2019. These credits expire on September 30, 2040.
Reconciliation of Total Income Tax Expense The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.
Fiscal Years Ended September 30,
202020192018
(Dollars in Thousands)AmountRateAmountRateAmount Rate
Statutory federal income tax expense and rate$24,151 21.0 %$20,568 21.0 %$14,082 24.5 %
Change in tax rate resulting from:
State income taxes net of federal benefits5,444 4.7 %5,000 5.1 %2,461 4.3 %
162(m) disallowance1,129 1.0 %2,777 2.8 %— — %
Tax exempt income(1,212)(1.0)%(2,714)(2.8)%(6,968)(12.1)%
Nondeductible acquisition costs— — %— — %1,295 2.3 %
General business credits(22,284)(19.4)%(27,126)(27.7)%(3,948)(6.9)%
Tax reform— — %— — %3,849 6.7 %
Amended Crestmark Bancorp historical tax return— — %— — %(4,644)(8.1)%
Other, net(1,567)(1.4)%(1,879)(1.8)%(1,010)(1.7)%
Income tax expense (benefit)$5,661 4.9 %$(3,374)(3.4)%$5,117 9.0 %
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits follows: 
September 30,
(Dollars in Thousands)20202019
Balance at beginning of fiscal year$368 $434 
Additions (reductions) for tax positions related to prior years723 (66)
Balance at end of fiscal year$1,091 $368 
v3.20.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)
 12 Months Ended
Sep. 30, 2020
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.
 CompanyBankMinimum to be Adequately Capitalized Under Prompt Corrective Action ProvisionsMinimum to be Well Capitalized Under Prompt Corrective Action Provisions
September 30, 2020
Tier 1 leverage capital ratio6.58 %7.56 %4.00 %5.00 %
Common equity Tier 1 capital ratio11.78 13.96 4.50 6.50 
Tier 1 capital ratio 12.18 14.00 6.00 8.00 
Total capital ratio15.30 15.26 8.00 10.00 
September 30, 2019    
Tier 1 leverage capital ratio8.33 %9.65 %4.00 %5.00 %
Common equity Tier 1 capital ratio10.35 12.31 4.50 6.50 
Tier 1 capital ratio 10.71 12.37 6.00 8.00 
Total capital ratio13.01 13.02 8.00 10.00 
Reconciliation of Required Capital Amount and Ratios
The following table provides a reconciliation of the amounts included in the table above for the Company.
 
Standardized Approach(1)
September 30, 2020
(Dollars in Thousands)
Total stockholders' equity$847,308 
Adjustments:
LESS: Goodwill, net of associated deferred tax liabilities302,396 
LESS: Certain other intangible assets40,964 
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards18,361 
LESS: Net unrealized gains (losses) on available-for-sale securities17,762 
LESS: Noncontrolling interest3,603 
Common Equity Tier 1 (1)
464,222 
Long-term borrowings and other instruments qualifying as Tier 113,661 
Tier 1 minority interest not included in common equity tier 1 capital1,894 
Total Tier 1 capital479,777 
Allowance for loan and lease losses49,343 
Subordinated debentures (net of issuance costs)73,807 
Total capital$602,927 
(1) Capital ratios were determined using the Capital Rules that became effective on January 1, 2015. The Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum common equity tier 1 capital ratio; those changes are being fully phased in through the end of 2021.
Reconciliation of Tangible Common Equity
The following table provides a reconciliation of tangible common equity and tangible common equity excluding AOCI, each of which is used in calculating tangible book value data, to Total Stockholders' Equity. Each of tangible common equity and tangible common equity excluding AOCI is a non-GAAP financial measure that is commonly used within the banking industry.

(Dollars in Thousands)September 30, 2020
Total stockholders' equity$847,308 
LESS: Goodwill309,505 
LESS: Intangible assets41,692 
Tangible common equity496,111 
LESS: AOCI17,542 
Tangible common equity excluding AOCI$478,569 
v3.20.2
LEASE COMMITMENTS (Tables)
 12 Months Ended
Sep. 30, 2020
Leases [Abstract]  
Schedule of Operating Lease Payments
Undiscounted future minimum operating lease payments and a reconciliation to the amount recorded as operating lease liabilities were as follows:
(Dollars in Thousands)
2021$3,742 
20223,479 
20232,799 
20242,808 
20252,755 
Thereafter15,765 
Total undiscounted future minimum lease payments 31,348 
Discount(4,275)
Total operating lease liabilities$27,073 
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the fiscal years presented below as of September 30 and thereafter.
 Fiscal Year Ended September 30,
(Dollars in Thousands)Operating
Leases		Capital
Leases
2020$3,709 $216 
20213,429 216 
20222,955 216 
20232,561 216 
20242,457 194 
Thereafter18,971 1,876 
Total leases commitments$34,082 $2,934 
Amounts representing interest $986 
Present value of net minimum lease payments 1,948 
Schedule of Finance Lease Payments
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the fiscal years presented below as of September 30 and thereafter.
 Fiscal Year Ended September 30,
(Dollars in Thousands)Operating
Leases		Capital
Leases
2020$3,709 $216 
20213,429 216 
20222,955 216 
20232,561 216 
20242,457 194 
Thereafter18,971 1,876 
Total leases commitments$34,082 $2,934 
Amounts representing interest $986 
Present value of net minimum lease payments 1,948 
v3.20.2
REVENUE FROM CONTRACTS WITH CUSTOMERS (Tables)
 12 Months Ended
Sep. 30, 2020
Revenue from Contract with Customer [Abstract]  
Schedule of Revenue by Major Customers by Reporting Segments For additional descriptions of the Company’s operating segments, including additional financial information and the underlying management accounting process, see Note 22. Segment Reporting to the Consolidated Financial Statements.
(Dollars in Thousands)ConsumerCommercialCorporate Services/OtherConsolidated Company
Year Ended September 30,20202019202020192020201920202019
Net interest income(1)
$108,085 $79,010 $150,766 $152,565 $187 $32,632 $259,038 $264,207 
Noninterest income:
Refund transfer product fees36,061 39,198 — — — — 36,061 39,198 
Tax advance product fees(1)
31,826 34,687 — — — — 31,826 34,687 
Payment card and deposit fees87,379 87,130 — — — — 87,379 87,130 
Other bank and deposit fees— — 984 1,163 326 779 1,310 1,942 
Rental income(1)
19 12 43,493 40,533 1,314 508 44,826 41,053 
Gain on sale of securities available-for-sale, net(1)
— — — — 51 729 51 729 
Gain on divestitures(1)
— — — — 19,275 — 19,275 — 
(Loss) gain on sale of other(1)
(19)241 9,587 7,511 (5,143)79 4,425 7,831 
Other income(1)
3,045 944 6,087 5,017 5,509 4,014 14,641 9,975 
Total noninterest income158,311 162,212 60,151 54,224 21,332 6,109 239,794 222,545 
Revenue$266,396 $241,222 $210,917 $206,789 $21,519 $38,741 $498,832 $486,752 
(1) These revenues are not within the scope of Topic 606. Additional details are included in other footnotes to the accompanying financial statements. The scope of Topic 606 explicitly excludes net interest income as well as many other revenues for financial assets and liabilities, including loans, leases, and securities.
v3.20.2
SEGMENT REPORTING (Tables)
 12 Months Ended
Sep. 30, 2020
Segment Reporting [Abstract]  
Segment Information of Entity
The following tables present segment data for the Company for the fiscal years ended September 30, 2020, 2019 and 2018, respectively.
 ConsumerCommercialCorporate Services/OtherTotal
Fiscal Year Ended September 30, 2020
Net interest income$108,085 $150,766 $187 $259,038 
Provision for loan and lease losses21,838 29,296 13,642 64,776 
Noninterest income158,311 60,151 21,332 239,794 
Noninterest expense76,651 107,802 134,598 319,051 
Income (loss) before income tax expense (benefit)167,907 73,819 (126,721)115,005 
Total assets588,216 2,836,149 2,667,709 6,092,074 
Total goodwill87,145 222,360 — 309,505 
Total deposits4,555,999 6,226 416,975 4,979,200 
 ConsumerCommercialCorporate Services/OtherTotal
Fiscal Year Ended September 30, 2019
Net interest income$79,010 $152,565 $32,632 $264,207 
Provision for loan and lease losses25,336 21,901 8,413 55,650 
Noninterest income162,212 54,224 6,109 222,545 
Noninterest expense77,153 127,033 128,974 333,160 
Income (loss) before income tax expense (benefit)138,733 57,855 (98,646)97,942 
Total assets700,365 2,432,381 3,050,144 6,182,890 
Total goodwill87,145 222,360 — 309,505 
Total deposits2,444,452 5,588 1,886,965 4,337,005 

ConsumerCommercialCorporate Services/OtherTotal
Fiscal Year Ended September 30, 2018
Net interest income$26,111 $34,294 $70,144 $130,549 
Provision for loan losses22,202 1,968 5,262 29,432 
Noninterest income (expense)176,257 11,955 (3,687)184,525 
Noninterest expense97,288 36,422 94,522 228,232 
Income (loss) before income tax expense (benefit)82,878 7,859 (33,327)57,410 
Total assets344,919 1,942,283 3,547,865 5,835,067 
Total goodwill87,145 216,125 — 303,270 
Total deposits2,419,773 4,939 2,006,275 4,430,987 
v3.20.2
PARENT COMPANY FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2020
Condensed Financial Information Disclosure [Abstract]  
Condensed Statements of Financial Condition
CONDENSED STATEMENTS OF FINANCIAL CONDITION
September 30,20202019
(Dollars in Thousands)
ASSETS
Cash and cash equivalents$4,783 $8,111 
Investment securities held to maturity, at cost1,208 411 
Investment in subsidiaries933,431 933,196 
Other assets3,308 159 
Total assets$942,730 $941,877 
LIABILITIES AND STOCKHOLDERS' EQUITY  
LIABILITIES  
Long-term borrowings$87,468 $87,305 
Other liabilities7,954 10,614 
Total liabilities$95,422 $97,919 
STOCKHOLDERS' EQUITY  
Common stock$344 $378 
Additional paid-in capital594,569 580,826 
Retained earnings234,927 252,813 
Accumulated other comprehensive income (loss)17,542 6,339 
Treasury stock, at cost(3,677)(445)
Total equity attributable to parent843,705 839,911 
Noncontrolling interest3,603 4,047 
Total stockholders' equity847,308 843,958 
Total liabilities and stockholders' equity$942,730 $941,877 
Condensed Statements of Operations
CONDENSED STATEMENTS OF OPERATIONS
Fiscal Years Ended September 30,202020192018
(Dollars in Thousands)
Interest expense$5,168 $5,296 $5,061 
Other expense1,256 1,044 663 
Total expense6,424 6,340 5,724 
Loss before income taxes and equity in undistributed net income of subsidiaries(6,424)(6,340)(5,724)
Income tax (benefit)(3,638)(1,374)(1,504)
Loss before equity in undistributed net income of subsidiaries(2,786)(4,966)(4,220)
Equity in undistributed net income of subsidiaries107,476 101,970 55,840 
Other income30 — — 
Total Income107,506 101,970 55,840 
Net income attributable to parent$104,720 $97,004 $51,620 
Condensed Statements of Cash Flows
CONDENSED STATEMENTS OF CASH FLOWS
For the Fiscal Years Ended September 30,202020192018
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
Net income attributable to parent$104,720 $97,004 $51,620 
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation, amortization and accretion, net163 153 143 
Equity in undistributed net income of subsidiaries(107,476)(101,970)(55,840)
Stock compensation10,221 12,942 11,123 
Net change:
Other assets(3,149)(35)232 
Accrued expenses and other liabilities(2,660)(6,468)(860)
Cash dividend received118,000 33,980 45,315 
Net cash provided by operating activities119,819 35,606 51,733 
CASH FLOWS FROM INVESTING ACTIVITIES
Held to maturity:
Proceeds from maturities and principal repayments— — 8 
Capital contributions to subsidiaries— — (20,322)
Alternative Investments(797)— — 
Net cash (used in) investing activities(797)— (20,314)
CASH FLOWS FROM FINANCING ACTIVITIES
Cash dividends paid(7,100)(7,760)(5,736)
Payment:
Short-term borrowings— — (11,642)
Long-term borrowings— — (258)
Purchase of shares by ESOP3,220 2,011 1,606 
Proceeds/(payment):
Exercise of stock options & issuance of common stock266 44 148 
Issuance of restricted stock2 3 4 
Issuance of commons shares due to acquisitions— — 295,767 
Cash acquired due to acquisitions— — 697 
Net increase in investment in subsidiaries— (90)(295,767)
Shares repurchased for tax withholdings on stock compensation(118,738)(49,912)(2,598)
Net cash provided by (used in) financing activities(122,350)(55,704)(17,779)
Net change in cash and cash equivalents$(3,328)$(20,098)$13,640 
CASH AND CASH EQUIVALENTS  
Beginning of fiscal year8,111 28,209 14,569 
End of fiscal year$4,783 $8,111 $28,209 
v3.20.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Sep. 30, 2020
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
 QUARTER ENDED
(Dollars in Thousands, Except Per Share Data)December 31March 31June 30September 30
Fiscal Year 2020
Interest and dividend income$77,625 $79,403 $67,406 $68,407 
Interest expense12,974 11,666 5,269 3,894 
Net interest income64,651 67,737 62,137 64,513 
Provision for loan and lease losses3,407 37,296 15,093 8,980 
Noninterest income37,483 120,513 41,048 40,750 
Net income attributable to parent21,068 52,304 18,190 13,158 
Earnings per common share    
Basic$0.56 $1.45 $0.53 $0.38 
Diluted0.56 1.45 0.53 0.38 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2019    
Interest and dividend income$74,976 $88,294 $81,632 $80,828 
Interest expense14,704 16,944 14,664 15,211 
Net interest income60,272 71,350 66,968 65,617 
Provision for loan and lease losses9,099 33,318 9,112 4,121 
Noninterest income37,751 105,025 43,790 35,980 
Net income attributable to parent15,398 32,120 29,291 20,195 
Earnings per common share    
Basic$0.39 $0.81 $0.75 $0.53 
Diluted0.39 0.81 0.75 0.53 
Dividend declared per share0.05 0.05 0.05 0.05 
Fiscal Year 2018    
Interest and dividend income$30,857 $33,371 $34,104 $60,202 
Interest expense4,661 5,966 5,693 11,665 
Net interest income26,196 27,405 28,411 48,537 
Provision (recovery) for loan losses1,068 18,343 5,315 4,706 
Noninterest income29,268 97,419 33,225 24,613 
Net income attributable to parent4,670 31,436 6,792 8,722 
Earnings per common share    
Basic$0.15 $1.07 $0.22 $0.24 
Diluted0.15 1.06 0.22 0.24 
Dividend declared per share0.04 0.04 0.04 0.05 
v3.20.2
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2020
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of debt securities available for sale and equity securities as they are measured at fair value on a recurring basis.
 Fair Value At September 30, 2020
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
SBA securities$164,955 $— $164,955 $— 
Obligations of states and political subdivisions841 — 841 — 
Non-bank qualified obligations of states and political subdivisions323,774 — 323,774 — 
Asset-backed securities324,925 — 324,925 — 
Mortgage-backed securities453,607 — 453,607 — 
Total debt securities AFS$1,268,102 $— $1,268,102 $— 
Common equities and mutual funds(1)
$2,969 $2,969 $— $— 
Non-marketable equity securities(2)
$2,784 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and September 30, 2019.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

 Fair Value At September 30, 2019
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Debt securities AFS
SBA securities$185,982 $— $185,982 $— 
Obligations of states and political subdivisions874 — 874 — 
Non-bank qualified obligations of states and political subdivisions400,557 — 400,557 — 
Asset-backed securities302,534 — 302,534 — 
Mortgage-backed securities382,546 — 382,546 — 
Total debt securities AFS$1,272,493 $— $1,272,493 $— 
Common equities and mutual funds(1)
$2,606 $2,606 $— $— 
Non-marketable equity securities(2)
$1,669 $— $— $— 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and September 30, 2019.
(2) Consists of certain non-marketable equity securities that are measured at fair value using net asset value ("NAV") per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
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: 
 Fair Value At September 30, 2020
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Impaired loans and leases, net
Commercial finance$9,240 $— $— $9,240 
Total National Lending9,240 — — 9,240 
Commercial real estate and operating20 — — 20 
Total Community Banking20 — — 20 
Total impaired loans and leases, net9,260 — — 9,260 
Foreclosed assets, net9,957 — — 9,957 
Total$19,217 $— $— $19,217 

 Fair Value At September 30, 2019
(Dollars in Thousands)TotalLevel 1Level 2Level 3
Impaired loans and leases, net
Commercial finance$8,707 $— $— $8,707 
Total National Lending8,707 — — 8,707 
Total impaired loans and leases, net8,707 — — 8,707 
Foreclosed assets, net29,494 — — 29,494 
Total$38,201 $— $— $38,201 
Quantitative Information about Level 3 Fair Value Measurements
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)Fair Value at
September 30, 2020		Fair Value at
September 30, 2019		Valuation
Technique		Unobservable InputRange of Inputs
Impaired loans and leases, net$9,260 8,707 Market approach
Appraised values(1)
4% - 10%
Foreclosed assets, net$9,957 29,494 Market approach
Appraised values(1)
4% - 30%
(1) The Company generally relies on external appraisers to develop this information. Management reduced the appraised value by estimated selling costs and other inputs in a range of 4% to 30%.
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:
 September 30, 2020
(Dollars in Thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$427,367 $427,367 $427,367 $— $— 
Debt securities available for sale1,268,102 1,268,102 — 1,268,102 — 
Debt securities held to maturity92,610 93,745 — 93,745 — 
Common equities and mutual funds(1)
2,969 2,969 2,969 — — 
Non-marketable equity securities(1)(2)
14,784 14,784 — 12,000 — 
Loans held for sale183,577 183,577 — 183,577 — 
Loans and leases receivable3,314,140 3,307,037 — — 3,307,037 
Federal Reserve Bank and Federal Home Loan Bank stocks27,138 27,138 — 27,138 — 
Accrued interest receivable16,628 16,628 16,628 — — 
Financial liabilities
Deposits4,979,200 4,980,073 4,705,028 275,045 — 
Overnight federal funds purchased— — — — — 
Federal Home Loan Bank advances— — — — — 
Other short- and long-term borrowings98,224 100,185 — 100,185 — 
Accrued interest payable1,923 1,923 1,923 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and 2019.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.

 September 30, 2019
(Dollars in Thousands)Carrying
Amount		Estimated
Fair Value		Level 1Level 2Level 3
Financial assets
Cash and cash equivalents$126,545 $126,545 $126,545 $— $— 
Debt securities available for sale1,272,493 1,272,493 — 1,272,493 — 
Debt securities held to maturity134,764 133,470 — 133,470 — 
Common equities and mutual funds(1)
2,606 2,606 2,606 — — 
Non-marketable equity securities(1)(2)
8,169 8,169 — 6,500 — 
Loans held for sale148,777 148,777 — 148,777 — 
Loans and leases receivable3,651,413 3,622,597 — — 3,622,597 
Federal Home Loan Bank stock30,916 30,916 — 30,916 — 
Accrued interest receivable20,400 20,400 20,400 — — 
Financial liabilities
Deposits4,337,005 4,338,510 2,920,516 1,417,994 — 
Overnight federal funds purchased642,000 642,000 642,000 — — 
Federal Home Loan Bank advances110,000 110,691 — 110,691 — 
Other short- and long-term borrowings109,857 113,876 — 113,876 — 
Accrued interest payable9,414 9,414 9,414 — — 
(1) Equity securities at fair value are included within other assets on the consolidated statement of financial condition at September 30, 2020 and 2019.
(2) Includes certain non-marketable equity securities that are measured at fair value using NAV per share (or its equivalent) as a practical expedient and are excluded from the fair value hierarchy.
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Additional Information (Details)
 12 Months Ended
Sep. 30, 2020
USD ($)
segment
joint_venture
Sep. 30, 2019
USD ($)
segment
Sep. 30, 2018
USD ($)
Oct. 01, 2019
USD ($)
Oct. 01, 2018
USD ($)
Sep. 30, 2017
USD ($)
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract]            
Number of reporting segments | segment 3 3        
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract]            
Terms of FHLB advances 90 days          
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank) $ 0 $ 33,900,000        
Investment Holdings [Line Items]            
Number of joint venture LLC's | joint_venture 5          
Joint venture ownership interest in each of the joint ventures (as a percentage) 80.00%          
Federal funds sold $ 0          
Impairment 0 0 $ 0      
Total stockholders' equity 847,308,000 843,958,000 747,726,000     $ 434,496,000
Loans outstanding with individuals 0 5,100,000        
Operating lease, right-of-use asset 25,800,000          
Operating lease liability 27,073,000          
SECURITIES [Abstract]            
Other-than-temporary impairment recorded 0 0 0      
Equity Investments            
Impairment loss 1,300,000          
Net income before noncontrolling interest 109,344,000 101,316,000 52,293,000      
Transfers            
Aggregate unpaid balance of loans serviced for others 232,300,000 175,500,000        
Equity Method Investment, Nonconsolidated Investee            
Equity Investments            
Net income before noncontrolling interest 2,600,000          
FRB            
Investment Holdings [Line Items]            
Interest bearing deposits 362,000,000.0          
FHLB            
Investment Holdings [Line Items]            
Interest bearing deposits $ 2,000,000.0          
Minimum            
Equity Investments            
Equity method investment, ownership percentage 5.00%          
ALLOWANCE FOR LOAN LOSSES [Abstract]            
Look back period 3 years          
Maximum            
Equity Investments            
Equity method investment, ownership percentage 25.00%          
ALLOWANCE FOR LOAN LOSSES [Abstract]            
Look back period 7 years          
Accounting Standards Update 2016-02            
Investment Holdings [Line Items]            
Operating lease, right-of-use asset       $ 27,400,000    
Operating lease liability       $ 28,600,000    
Accounting Standards Update 2014-09 | Adjustment            
Investment Holdings [Line Items]            
Total stockholders' equity     1,502,000      
Other Assets            
Equity Investments            
Equity method investments $ 11,000,000.0          
Other Assets | Accounting Standards Update 2016-01            
Equity Investments            
Alternative Investment 12,000,000.0          
Fair Value Measured at Net Asset Value Per Share | Other Assets            
Equity Investments            
Equity method investments 2,800,000          
      Retained Earnings            
Investment Holdings [Line Items]            
Total stockholders' equity 234,927,000 252,813,000 213,048,000     $ 167,164,000
Equity Investments            
Net income before noncontrolling interest $ 104,720,000 $ 97,004,000 51,620,000      
      Retained Earnings | Accounting Standards Update 2016-01 | Adjustment            
Investment Holdings [Line Items]            
Total stockholders' equity     475,000      
      Retained Earnings | Accounting Standards Update 2014-09 | Adjustment            
Investment Holdings [Line Items]            
Total stockholders' equity     $ 1,502,000   $ 1,500,000  
First Midwest Financial Capital Trust I            
Investment Holdings [Line Items]            
Percentage of interest in subsidiary 100.00%          
Buildings            
Property, Plant and Equipment [Line Items]            
Premises, furniture and equipment, estimated useful lives 39 years          
Leasehold Improvements | Minimum            
Property, Plant and Equipment [Line Items]            
Premises, furniture and equipment, estimated useful lives 2 years          
Leasehold Improvements | Maximum            
Property, Plant and Equipment [Line Items]            
Premises, furniture and equipment, estimated useful lives 15 years          
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - ASU Adoptions (Details) - USD ($)
$ in Thousands
Oct. 01, 2020
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Loans and Leases Receivable Disclosure [Line Items]          
Total loans and leases   $ 3,322,765 $ 3,658,847    
Allowance for loan and lease losses   56,188 29,149 $ 13,040 $ 7,534
Retained earnings   $ 234,927 $ 252,813    
Minimum | Accounting Standards Update 2016-13 | Subsequent Event | Forecast          
Loans and Leases Receivable Disclosure [Line Items]          
Allowance for loan and lease losses $ 12,000        
Liability for off-balance sheet credit exposures 800        
Minimum | Adjustment | Accounting Standards Update 2016-13 | Subsequent Event | Forecast          
Loans and Leases Receivable Disclosure [Line Items]          
Retained earnings (10,000)        
Maximum | Accounting Standards Update 2016-13 | Subsequent Event | Forecast          
Loans and Leases Receivable Disclosure [Line Items]          
Allowance for loan and lease losses 13,000        
Liability for off-balance sheet credit exposures 900        
Maximum | Adjustment | Accounting Standards Update 2016-13 | Subsequent Event | Forecast          
Loans and Leases Receivable Disclosure [Line Items]          
Retained earnings $ (11,000)        
v3.20.2
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES - Assets of VIE's (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Variable Interest Entity [Line Items]        
Cash and cash equivalents $ 427,367 $ 126,545    
Total loans and leases 3,322,765 3,658,847    
Allowance for loan and lease losses (56,188) (29,149) $ (13,040) $ (7,534)
Accrued interest receivable 16,628 20,400    
Rental equipment, net 205,964 208,537    
Foreclosed real estate and repossessed assets, net 9,957 29,494    
Other assets 82,983 54,832    
Total assets 6,092,074 6,182,890 $ 5,835,067  
Accrued expenses and other liabilities 165,419 130,656    
Noncontrolling interest 3,603 4,047    
Net assets less noncontrolling interest 843,705 $ 839,911    
Variable Interest Entity, Primary Beneficiary        
Variable Interest Entity [Line Items]        
Cash and cash equivalents 1,480      
Total loans and leases 124,869      
Allowance for loan and lease losses (557)      
Accrued interest receivable 724      
Rental equipment, net 0      
Foreclosed real estate and repossessed assets, net 952      
Other assets 4,006      
Total assets 131,474      
Accrued expenses and other liabilities 2,132      
Noncontrolling interest 3,603      
Net assets less noncontrolling interest $ 125,739      
v3.20.2
SIGNIFICANT EVENTS - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Business Acquisition [Line Items]                              
Provision for loan and lease losses $ 8,980 $ 15,093 $ 37,296 $ 3,407 $ 4,121 $ 9,112 $ 33,318 $ 9,099 $ 4,706 $ 5,315 $ 18,343 $ 1,068 $ 64,776 $ 55,650 $ 29,432
Covid-19 Pandemic                              
Business Acquisition [Line Items]                              
Loans and lease receivables deferred income 170,000                       170,000    
Current $ 23,300                       23,300    
Provision for loan and lease losses                         $ 26,400    
v3.20.2
SIGNIFICANT EVENTS - Active COVID-19 Related Modifications (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Loss Contingencies [Line Items]      
Total loans and leases $ 3,322,765 $ 3,658,847  
Rental equipment, net 205,964 208,537  
Total assets 6,092,074 $ 6,182,890 $ 5,835,067
COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 170,048    
Rental equipment, net 0    
Total assets 170,048    
Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 23,280    
Rental equipment, net 0    
Total assets 23,280    
National Lending | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 49,353    
National Lending | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 23,280    
National Lending | Term Lending | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 26,559    
National Lending | Term Lending | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Asset Based Lending | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 3,078    
National Lending | Asset Based Lending | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 4,846    
National Lending | Factoring | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Factoring | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 18,434    
National Lending | Lease Financing | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 5,896    
National Lending | Lease Financing | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Premium Finance | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 230    
National Lending | Premium Finance | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | SBA/USDA | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 7,724    
National Lending | SBA/USDA | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Other Commercial Finance | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 69    
National Lending | Other Commercial Finance | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Commercial Operating | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 43,556    
National Lending | Commercial Operating | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 23,280    
National Lending | Consumer Credit Products | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 1,574    
National Lending | Consumer Credit Products | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Other Consumer Finance | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 4,223    
National Lending | Other Consumer Finance | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
National Lending | Consumer | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 5,797    
National Lending | Consumer | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
Community Banking | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 120,695    
Community Banking | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
Community Banking | Commercial and Multi-Family Real Estate | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 120,695    
Community Banking | Commercial and Multi-Family Real Estate | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases 0    
Community Banking | 1-4 Family Real Estate | COVID-19 Related Payment Deferrals      
Loss Contingencies [Line Items]      
Total loans and leases 0    
Community Banking | 1-4 Family Real Estate | Other COVID-19 Related Modifications      
Loss Contingencies [Line Items]      
Total loans and leases $ 0    
v3.20.2
DIVESTITURES - Summarized Division Results (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Feb. 29, 2020
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 17, 2020
Aug. 04, 2020
Balance Sheet Disclosures [Abstract]                                    
Gain on sale                           $ 19,275 $ 0 $ 0    
Income Statement Disclosures [Abstract]                                    
Net interest income - Retained   $ 64,513 $ 62,137 $ 67,737 $ 64,651 $ 65,617 $ 66,968 $ 71,350 $ 60,272 $ 48,537 $ 28,411 $ 27,405 $ 26,196 259,038 264,207 130,549    
Provision for loan and lease losses   8,980 15,093 37,296 3,407 4,121 9,112 33,318 9,099 4,706 5,315 18,343 1,068 64,776 55,650 29,432    
Noninterest income (expense)   40,750 $ 41,048 $ 120,513 $ 37,483 $ 35,980 $ 43,790 $ 105,025 $ 37,751 $ 24,613 $ 33,225 $ 97,419 $ 29,268 239,794 222,545 184,525    
Noninterest expense                           319,051 333,160 228,232    
Income (loss) before income tax expense (benefit)                           115,005 $ 97,942 $ 57,410    
Community Bank                                    
Balance Sheet Disclosures [Abstract]                                    
Total assets                                 $ 76,400 $ 58,600
Community Bank | Discontinued Operations                                    
Balance Sheet Disclosures [Abstract]                                    
Cash and cash equivalents $ 2,504                                  
Loans 268,584                                  
Premises, furniture and equipment 4,945                                  
Other assets 1,250                                  
Total assets 277,283                                  
Deposits 290,493                                  
Other liabilities 1,720                                  
Total liabilities 292,213                                  
Net assets (14,930)                                  
Purchase price 4,345                                  
Gain on sale $ 19,275                                  
Community Bank | Discontinued Operations | Community Bank                                    
Income Statement Disclosures [Abstract]                                    
Net interest income - Sold   0                       2,512        
Net interest income - Retained   9,045                       34,393        
Net interest income, Sold and Retained, Amount   9,045                       36,905        
Provision for loan and lease losses - Sold   (2,470)                       (4,711)        
Provision for loan and lease losses   4,370                       18,891        
Provision for loan and lease losses, Sold and Retained, Amount   1,900                       14,180        
Noninterest income - Sold   0                       19,694        
Noninterest income (expense)   5                       (3,468)        
Noninterest expense, Sold and Retained, Amount   5                       16,226        
Noninterest expense - Sold   327                       5,282        
Noninterest expense   2,646                       7,759        
Noninterest expense, Sold and Retained, Amount   2,973                       13,041        
Income before income tax expense - Sold   2,143                       21,635        
Income (loss) before income tax expense (benefit)   2,034                       4,275        
Income before income tax expense, Sold and Retained, Amount   $ 4,177                       $ 25,910        
v3.20.2
DIVESTITURES - Narrative (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 17, 2020
Aug. 04, 2020
Sep. 30, 2019
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Loans classified as held for sale $ 183,577     $ 148,777
Community Bank        
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]        
Gain on sale (before tax) recognized within noninterest income 19,300      
Legal expenses 600      
IT expenses 200      
Consulting expenses 800      
Nonrecurring compensation expenses 300      
Servicing fee expense 3,500      
Total assets   $ 76,400 $ 58,600  
Loans classified as held for sale $ 130,100      
v3.20.2
SECURITIES - Narrative (Details) - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Debt Securities, Available-for-sale [Line Items]      
Securities pledged as collateral for public funds on deposit $ 0 $ 21,900,000  
Securities pledged as collateral for individual, trust, and estate deposits 0 4,800,000  
Equity securities without readily determinable fair value, amount 11,000,000.0 6,500,000  
Federal Reserve Bank and Federal Home Loan Bank stocks, at cost 7,500,000 30,900,000  
Pledged securities against specific FHLB advances, fair value 673,800,000 812,200,000  
Loans pledged as collateral 333,800,000 928,800,000  
Federal reserve bank stock 19,700,000    
Asset Pledged as Collateral      
Debt Securities, Available-for-sale [Line Items]      
Investments 359,700,000    
Federal Home Loan Bank      
Debt Securities, Available-for-sale [Line Items]      
Interest and dividend income from FLHB 800,000 $ 1,000,000.0 $ 1,100,000
Federal Reserve Bank      
Debt Securities, Available-for-sale [Line Items]      
Interest and dividend income from FLHB $ 300,000    
v3.20.2
SECURITIES - Schedule of Securities Available (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Available For Sale    
Amortized Cost $ 1,244,384 $ 1,263,888
Gross Unrealized Gains 30,967 14,694
Gross Unrealized (Losses) (7,249) (6,089)
Fair Value 1,268,102 1,272,493
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 283,334 236,477
Unrealized (Losses), Less than 12 months (2,036) (2,001)
Fair Value, 12 Months or Longer 191,664 238,321
Unrealized (Losses), 12 Months or Longer (5,213) (4,088)
Fair Value, Total 474,998 474,798
Unrealized (Losses), Total (7,249) (6,089)
Amortized Cost    
Due in one year or less 1,385 0
Due after one year through five years 20,805 16,749
Due after five years through ten years 32,441 50,263
Due after ten years 749,874 818,206
Total Amortized Cost 804,505 885,218
Mortgage-backed securities 439,879 378,670
Total securities AFS, at fair value 1,244,384 1,263,888
Fair Value    
Due in one year or less 1,398 0
Due after one year through five years 21,769 17,143
Due after five years through ten years 34,025 51,840
Due after ten years 757,303 820,964
Total Fair Value 814,495 889,947
Mortgage-backed securities 453,607 382,546
Fair Value 1,268,102 1,272,493
Held To Maturity    
Amortized Cost 92,610 134,764
Gross Unrealized Gains 1,164 122
Gross Unrealized (Losses) (29) (1,416)
Fair Value 93,745 133,470
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 7,397 7,438
OVER 12 MONTHS, Fair Value 3,637 111,171
TOTAL, Fair Value 11,034 118,609
LESS THAN 12 MONTHS, Unrealized (Losses) (9) (6)
OVER 12 MONTHS, Unrealized (Losses) (20) (1,410)
TOTAL, Unrealized (Losses) (29) (1,416)
AMORTIZED COST [Abstract]    
Due after ten years 87,183 127,582
Total Amortized Cost 87,183 127,582
Mortgage-backed securities 5,427 7,182
Total securities HTM, at cost 92,610 134,764
FAIR VALUE [Abstract]    
Due after ten years 88,194 126,287
Total Fair Value 88,194 126,287
Mortgage-backed securities 5,551 7,183
Total securities HTM, at cost 93,745 133,470
SBA securities    
Available For Sale    
Amortized Cost 159,722 182,327
Gross Unrealized Gains 5,391 3,655
Gross Unrealized (Losses) (158) 0
Fair Value 164,955 185,982
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 32,257 10,262
Unrealized (Losses), Less than 12 months (102) 0
Fair Value, 12 Months or Longer 9,875 0
Unrealized (Losses), 12 Months or Longer (56) 0
Fair Value, Total 42,132 10,262
Unrealized (Losses), Total (158) 0
Amortized Cost    
Total securities AFS, at fair value 159,722 182,327
Fair Value    
Fair Value 164,955 185,982
Obligation of states and political subdivisions    
Available For Sale    
Amortized Cost 825 858
Gross Unrealized Gains 16 16
Gross Unrealized (Losses) 0 0
Fair Value 841 874
Amortized Cost    
Total securities AFS, at fair value 825 858
Fair Value    
Fair Value 841 874
Non-bank qualified obligations of states and political subdivisions    
Available For Sale    
Amortized Cost 314,819 396,430
Gross Unrealized Gains 8,978 5,030
Gross Unrealized (Losses) (23) (903)
Fair Value 323,774 400,557
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 6,265 66,326
Unrealized (Losses), Less than 12 months (6) (177)
Fair Value, 12 Months or Longer 3,103 55,428
Unrealized (Losses), 12 Months or Longer (17) (726)
Fair Value, Total 9,368 121,754
Unrealized (Losses), Total (23) (903)
Amortized Cost    
Total securities AFS, at fair value 314,819 396,430
Fair Value    
Fair Value 323,774 400,557
Held To Maturity    
Amortized Cost 87,183 127,582
Gross Unrealized Gains 1,040 108
Gross Unrealized (Losses) (29) (1,403)
Fair Value 88,194 126,287
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 7,397 5,967
OVER 12 MONTHS, Fair Value 3,637 109,368
TOTAL, Fair Value 11,034 115,335
LESS THAN 12 MONTHS, Unrealized (Losses) (9) (6)
OVER 12 MONTHS, Unrealized (Losses) (20) (1,397)
TOTAL, Unrealized (Losses) (29) (1,403)
AMORTIZED COST [Abstract]    
Total securities HTM, at cost 87,183 127,582
FAIR VALUE [Abstract]    
Total securities HTM, at cost 88,194 126,287
Asset-backed securities    
Available For Sale    
Amortized Cost 329,139 305,603
Gross Unrealized Gains 2,015 262
Gross Unrealized (Losses) (6,229) (3,331)
Fair Value 324,925 302,534
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 106,474 158,176
Unrealized (Losses), Less than 12 months (1,089) (1,823)
Fair Value, 12 Months or Longer 178,686 93,259
Unrealized (Losses), 12 Months or Longer (5,140) (1,508)
Fair Value, Total 285,160 251,435
Unrealized (Losses), Total (6,229) (3,331)
Amortized Cost    
Total securities AFS, at fair value 329,139 305,603
Fair Value    
Fair Value 324,925 302,534
Mortgage-backed securities    
Available For Sale    
Amortized Cost 439,879 378,670
Gross Unrealized Gains 14,567 5,731
Gross Unrealized (Losses) (839) (1,855)
Fair Value 453,607 382,546
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Fair Value, Less than 12 months 138,338 1,713
Unrealized (Losses), Less than 12 months (839) (1)
Fair Value, 12 Months or Longer 0 89,634
Unrealized (Losses), 12 Months or Longer 0 (1,854)
Fair Value, Total 138,338 91,347
Unrealized (Losses), Total (839) (1,855)
Amortized Cost    
Total securities AFS, at fair value 439,879 378,670
Fair Value    
Fair Value 453,607 382,546
Held To Maturity    
Amortized Cost 5,427 7,182
Gross Unrealized Gains 124 14
Gross Unrealized (Losses) 0 (13)
Fair Value 5,551 7,183
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   1,471
OVER 12 MONTHS, Fair Value   1,803
TOTAL, Fair Value   3,274
LESS THAN 12 MONTHS, Unrealized (Losses)   0
OVER 12 MONTHS, Unrealized (Losses)   (13)
TOTAL, Unrealized (Losses)   (13)
AMORTIZED COST [Abstract]    
Total securities HTM, at cost 5,427 7,182
FAIR VALUE [Abstract]    
Total securities HTM, at cost $ 5,551 $ 7,183
v3.20.2
SECURITIES - Activities Related to Sale (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Available For Sale      
Proceeds from sales $ 4,904 $ 755,616 $ 596,758
Gross gains on sales 51 6,006 2,551
Gross losses on sales 0 5,277 10,728
Net gain (loss) on securities AFS $ 51 $ 729 $ (8,177)
v3.20.2
LOANS AND LEASES, NET - Summary of Loans (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
loan
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Aug. 01, 2018
USD ($)
Sep. 30, 2017
USD ($)
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases $ 3,314,140 $ 3,651,413      
Net deferred loan origination fees 8,625 7,434      
Total gross loans and leases 3,322,765 3,658,847      
Allowance for loan and lease losses (56,188) (29,149) $ (13,040)   $ (7,534)
Total loans and leases, net $ 3,266,577 3,629,698      
Number of PPP loans outstanding | loan 689        
National Lending          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases $ 2,828,576 2,449,592      
Allowance for loan and lease losses (33,880) (21,021) (4,972)    
National Lending | Term Lending          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 805,323 641,742      
Allowance for loan and lease losses (15,211) (5,533) (89)    
National Lending | Asset Based Lending          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 182,419 250,465      
Allowance for loan and lease losses (1,406) (2,437) (47)    
National Lending | Factoring          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 281,173 296,507      
Allowance for loan and lease losses (3,027) (3,261) (64)    
National Lending | Lease Financing          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 281,084 177,915      
Allowance for loan and lease losses (7,023) (1,275) (31)    
National Lending | Premium Finance          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 337,940 361,105      
Allowance for loan and lease losses (2,129) (1,024) (1,031)    
National Lending | SBA/USDA          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 318,387 88,831      
Allowance for loan and lease losses (940) (383) (13)    
National Lending | SBA/USDA | Covid-19 Pandemic          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 219,000        
National Lending | Other Commercial Finance          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 101,658 99,665      
Allowance for loan and lease losses (182) (683) (28)    
National Lending | Commercial Operating          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 2,307,984 1,916,230      
Allowance for loan and lease losses (29,918) (14,596) (1,302)    
National Lending | Consumer Credit Products          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 89,809 106,794      
Allowance for loan and lease losses (845) (1,044) (785)    
National Lending | Other Consumer Finance          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 134,342 161,404      
Allowance for loan and lease losses (2,821) (5,118) (2,820)    
National Lending | Consumer          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 224,151 268,198      
Allowance for loan and lease losses (3,666) (6,162) (3,605)    
National Lending | Tax Services          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 3,066 2,240      
Allowance for loan and lease losses (2) 0 0    
National Lending | Warehouse Agreement Borrowings          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 293,375 262,924      
Allowance for loan and lease losses (294) (263) (65)    
Community Banking          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 485,564 1,201,821      
Allowance for loan and lease losses (22,308) (8,128) (8,068)    
Community Banking | Commercial and Multi-Family Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 457,371 883,932      
Allowance for loan and lease losses (21,867) (6,208) (6,220)    
Community Banking | 1-4 Family Real Estate          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 16,486 259,425      
Allowance for loan and lease losses (298) (1,053) (632)    
Community Banking | Agriculture Loans          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Total loans and leases 11,707 58,464      
Allowance for loan and lease losses (143) $ (867) $ (1,216)    
Crestmark Bancorp, Inc.          
Accounts, Notes, Loans and Financing Receivable [Line Items]          
Receivables acquired 149,100        
Credit discounts 2,800     $ 12,300  
Interest rate mark discounts $ 2,300     6,000  
Gross contractual amount       $ 1,060,000  
v3.20.2
LOANS AND LEASES, NET - Schedule of Loans Purchased and Sold, by Portfolio Segment (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Loans held for sale:      
Total loans held for sale $ 151,435 $ 262,622 $ 165,670
Loans held for investment:      
Total purchases 151,435 278,065  
Loans held for sale:      
Total loans held for sale 319,123 125,357 $ 17,621
Loans held for investment:      
Total sales 600,795 134,140  
National Lending      
Loans held for sale:      
Total loans held for sale 0 15,443  
Loans held for investment:      
Total purchases 132,530 235,918  
Loans held for sale:      
Total loans held for sale 183,508 121,071  
Community Banking      
Loans held for investment:      
Total purchases 18,905 26,704  
Loans held for sale:      
Total loans held for sale 407,296 0  
Loans held for investment:      
Total loans held for investment $ 9,991 $ 13,069  
v3.20.2
LOANS AND LEASES, NET - Direct Financing and Sales-type Leases, and Lease Receivable Maturity (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Loans and Leases Receivable Disclosure [Abstract]    
Carrying Amount $ 299,487 $ 191,733
Unguaranteed residual assets 17,203 13,353
Unamortized initial direct costs 2,078 1,790
Unearned income (35,606) (27,171)
Total investment in direct financing and sales-type leases 283,162 $ 179,705
Interest income - loans and leases    
Interest income on net investments in direct financing and sales-type leases 18,300  
Lease income from operating lease payments 44,319  
Profit (loss) recorded on commencement date on sales-type leases 2,152  
Other 4,357  
Total leasing and equipment finance noninterest income 50,828  
Total lease income 69,128  
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract]    
2021 107,558  
2022 87,775  
2023 58,906  
2024 33,059  
2025 10,097  
Thereafter 2,092  
Total undiscounted future minimum lease payments receivable for direct financing and sales-type leases 299,487  
Third-party residual value guarantees 0  
Total carrying amount of direct financing and sales-type leases $ 299,487  
v3.20.2
LOANS AND LEASES, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2020
Sep. 30, 2019
Allowance          
Beginning balance $ 29,149 $ 13,040 $ 7,534    
Provision (recovery) for loan losses 64,776 55,650 29,433    
Recoveries 4,024 3,313 2,037    
Charge-offs (41,761) (42,854) (25,964)    
Ending balance 56,188 29,149 13,040    
Allowance          
Ending balance: individually evaluated for impairment       $ 5,119 $ 1,875
Ending balance: collectively evaluated for impairment       51,069 27,274
Total 29,149 29,149 7,534 56,188 29,149
Loans and Leases          
Ending balance: individually evaluated for impairment       51,278 33,639
Ending balance: collectively evaluated for impairment       3,262,862 3,617,774
Total       3,314,140 3,651,413
Total loans and leases       3,314,140 3,651,413
National Lending          
Allowance          
Beginning balance 21,021 4,972      
Provision (recovery) for loan losses 50,596 55,800      
Recoveries 4,024 3,063      
Charge-offs (41,761) (42,814)      
Ending balance 33,880 21,021 4,972    
Allowance          
Ending balance: individually evaluated for impairment       4,978 1,875
Ending balance: collectively evaluated for impairment       28,902 19,146
Total 33,880 21,021 4,972 33,880 21,021
Loans and Leases          
Ending balance: individually evaluated for impairment       44,593 30,296
Ending balance: collectively evaluated for impairment       2,783,983 2,419,296
Total       2,828,576 2,449,592
Total loans and leases       2,828,576 2,449,592
National Lending | Term Lending          
Allowance          
Beginning balance 5,533 89      
Provision (recovery) for loan losses 19,796 8,460      
Recoveries 340 1,565      
Charge-offs (10,458) (4,581)      
Ending balance 15,211 5,533 89    
Allowance          
Ending balance: individually evaluated for impairment       3,155 450
Ending balance: collectively evaluated for impairment       12,056 5,083
Total 15,211 89 89 15,211 5,533
Loans and Leases          
Ending balance: individually evaluated for impairment       26,085 19,568
Ending balance: collectively evaluated for impairment       779,238 622,174
Total       805,323 641,742
Total loans and leases       805,323 641,742
National Lending | Asset Based Lending          
Allowance          
Beginning balance 2,437 47      
Provision (recovery) for loan losses (1,036) 2,388      
Recoveries 47 39      
Charge-offs (42) (37)      
Ending balance 1,406 2,437 47    
Allowance          
Ending balance: individually evaluated for impairment       355 0
Ending balance: collectively evaluated for impairment       1,051 2,437
Total 1,406 2,437 47 1,406 2,437
Loans and Leases          
Ending balance: individually evaluated for impairment       5,317 378
Ending balance: collectively evaluated for impairment       177,102 250,087
Total       182,419 250,465
Total loans and leases       182,419 250,465
National Lending | Factoring          
Allowance          
Beginning balance 3,261 64      
Provision (recovery) for loan losses (245) 5,849      
Recoveries 926 73      
Charge-offs (915) (2,725)      
Ending balance 3,027 3,261 64    
Allowance          
Ending balance: individually evaluated for impairment       274 1,262
Ending balance: collectively evaluated for impairment       2,753 1,999
Total 3,027 64 64 3,027 3,261
Loans and Leases          
Ending balance: individually evaluated for impairment       5,071 3,824
Ending balance: collectively evaluated for impairment       276,102 292,683
Total       281,173 296,507
Total loans and leases       281,173 296,507
National Lending | Lease Financing          
Allowance          
Beginning balance 1,275 31      
Provision (recovery) for loan losses 6,105 1,824      
Recoveries 371 762      
Charge-offs (728) (1,342)      
Ending balance 7,023 1,275 31    
Allowance          
Ending balance: individually evaluated for impairment       1,194 112
Ending balance: collectively evaluated for impairment       5,829 1,163
Total 1,275 1,275 31 7,023 1,275
Loans and Leases          
Ending balance: individually evaluated for impairment       4,697 1,213
Ending balance: collectively evaluated for impairment       276,387 176,702
Total       281,084 177,915
Total loans and leases       281,084 177,915
National Lending | Premium Finance          
Allowance          
Beginning balance 1,024 1,031      
Provision (recovery) for loan losses 2,489 2,361      
Recoveries 620 321      
Charge-offs (2,004) (2,689)      
Ending balance 2,129 1,024 1,031    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       2,129 1,024
Total 1,024 1,024 1,031 2,129 1,024
Loans and Leases          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       337,940 361,105
Total       337,940 361,105
Total loans and leases       337,940 361,105
National Lending | SBA/USDA          
Allowance          
Beginning balance 383 13      
Provision (recovery) for loan losses 2,688 370      
Recoveries 0 0      
Charge-offs (2,131) 0      
Ending balance 940 383 13    
Allowance          
Ending balance: individually evaluated for impairment       0 51
Ending balance: collectively evaluated for impairment       940 332
Total 383 383 13 940 383
Loans and Leases          
Ending balance: individually evaluated for impairment       1,436 3,841
Ending balance: collectively evaluated for impairment       316,951 84,990
Total       318,387 88,831
Total loans and leases       318,387 88,831
National Lending | SBA/USDA | Covid-19 Pandemic          
Loans and Leases          
Total loans and leases       219,000  
National Lending | Other Commercial Finance          
Allowance          
Beginning balance 683 28      
Provision (recovery) for loan losses (501) 655      
Recoveries 0 0      
Charge-offs 0 0      
Ending balance 182 683 28    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       182 683
Total 182 28 28 182 683
Loans and Leases          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       101,658 99,665
Total       101,658 99,665
Total loans and leases       101,658 99,665
National Lending | Commercial Operating          
Allowance          
Beginning balance 14,596 1,302      
Provision (recovery) for loan losses 29,296 21,907      
Recoveries 2,304 2,760      
Charge-offs (16,278) (11,373)      
Ending balance 29,918 14,596 1,302    
Allowance          
Ending balance: individually evaluated for impairment       4,978 1,875
Ending balance: collectively evaluated for impairment       24,940 12,721
Total 29,918 14,596 1,302 29,918 14,596
Loans and Leases          
Ending balance: individually evaluated for impairment       42,606 28,824
Ending balance: collectively evaluated for impairment       2,265,378 1,887,406
Total       2,307,984 1,916,230
Total loans and leases       2,307,984 1,916,230
National Lending | Consumer Credit Products          
Allowance          
Beginning balance 1,044 785      
Provision (recovery) for loan losses (199) 259      
Recoveries 0 0      
Charge-offs 0 0      
Ending balance 845 1,044 785    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       845 1,044
Total 1,044 1,044 785 845 1,044
Loans and Leases          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       89,809 106,794
Total       89,809 106,794
Total loans and leases       89,809 106,794
National Lending | Other Consumer Finance          
Allowance          
Beginning balance 5,118 2,820      
Provision (recovery) for loan losses (538) 8,563      
Recoveries 890 81      
Charge-offs (2,649) (6,346)      
Ending balance 2,821 5,118 2,820    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       2,821 5,118
Total 2,821 5,118 2,820 2,821 5,118
Loans and Leases          
Ending balance: individually evaluated for impairment       1,987 1,472
Ending balance: collectively evaluated for impairment       132,355 159,932
Total       134,342 161,404
Total loans and leases       134,342 161,404
National Lending | Consumer          
Allowance          
Beginning balance 6,162 3,605      
Provision (recovery) for loan losses (737) 8,822      
Recoveries 890 81      
Charge-offs (2,649) (6,346)      
Ending balance 3,666 6,162 3,605    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       3,666 6,162
Total 3,666 3,605 3,605 3,666 6,162
Loans and Leases          
Ending balance: individually evaluated for impairment       1,987 1,472
Ending balance: collectively evaluated for impairment       222,164 266,726
Total       224,151 268,198
Total loans and leases       224,151 268,198
National Lending | Tax Services          
Allowance          
Beginning balance 0 0      
Provision (recovery) for loan losses 22,006 24,873      
Recoveries 830 222      
Charge-offs (22,834) (25,095)      
Ending balance 2 0 0    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       2 0
Total 0 0 0 2 0
Loans and Leases          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       3,066 2,240
Total       3,066 2,240
Total loans and leases       3,066 2,240
National Lending | Warehouse Agreement Borrowings          
Allowance          
Beginning balance 263 65      
Provision (recovery) for loan losses 31 198      
Recoveries 0 0      
Charge-offs 0 0      
Ending balance 294 263 65    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       294 263
Total 294 65 65 294 263
Loans and Leases          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       293,375 262,924
Total       293,375 262,924
Total loans and leases       293,375 262,924
Community Banking          
Allowance          
Beginning balance 8,128 8,068      
Provision (recovery) for loan losses 14,180 (150)      
Recoveries 0 250      
Charge-offs 0 (40)      
Ending balance 22,308 8,128 8,068    
Allowance          
Ending balance: individually evaluated for impairment       141 0
Ending balance: collectively evaluated for impairment       22,167 8,128
Total 22,308 8,128 8,068 22,308 8,128
Loans and Leases          
Ending balance: individually evaluated for impairment       6,685 3,343
Ending balance: collectively evaluated for impairment       478,879 1,198,478
Total       485,564 1,201,821
Total loans and leases       485,564 1,201,821
Community Banking | Commercial and Multi-Family Real Estate          
Allowance          
Beginning balance 6,208 6,220      
Provision (recovery) for loan losses 15,659 (12)      
Recoveries 0 0      
Charge-offs 0 0      
Ending balance 21,867 6,208 6,220    
Allowance          
Ending balance: individually evaluated for impairment       141 0
Ending balance: collectively evaluated for impairment       21,726 6,208
Total 6,208 6,208 6,220 21,867 6,208
Loans and Leases          
Ending balance: individually evaluated for impairment       160 258
Ending balance: collectively evaluated for impairment       457,211 883,674
Total       457,371 883,932
Total loans and leases       457,371 883,932
Community Banking | 1-4 Family Real Estate          
Allowance          
Beginning balance 1,053 632      
Provision (recovery) for loan losses (755) 461      
Recoveries 0 0      
Charge-offs 0 (40)      
Ending balance 298 1,053 632    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       298 1,053
Total 1,053 1,053 632 298 1,053
Loans and Leases          
Ending balance: individually evaluated for impairment       104 100
Ending balance: collectively evaluated for impairment       16,382 259,325
Total       16,486 259,425
Total loans and leases       16,486 259,425
Community Banking | Agriculture Loans          
Allowance          
Beginning balance 867 1,216      
Provision (recovery) for loan losses (724) (599)      
Recoveries 0 250      
Charge-offs 0 0      
Ending balance 143 867 1,216    
Allowance          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       143 867
Total $ 143 $ 867 $ 1,216 143 867
Loans and Leases          
Ending balance: individually evaluated for impairment       6,421 2,985
Ending balance: collectively evaluated for impairment       5,286 55,479
Total       11,707 58,464
Total loans and leases       $ 11,707 $ 58,464
v3.20.2
LOANS AND LEASES, NET - Asset Classification of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases $ 3,314,140 $ 3,651,413
National Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 2,601,359 2,179,154
National Lending | Term Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 805,323 641,742
National Lending | Asset Based Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 182,419 250,465
National Lending | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 281,173 296,507
National Lending | Lease Financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 281,084 177,915
National Lending | Premium Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 337,940 361,105
National Lending | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 318,387 88,831
National Lending | Other Commercial Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 101,658 99,665
National Lending | Commercial Operating    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 2,307,984 1,916,230
National Lending | Warehouse Agreement Borrowings    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 293,375 262,924
National Lending | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 2,348,074 2,005,337
National Lending | Pass | Term Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 725,101 585,382
National Lending | Pass | Asset Based Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 102,013 192,427
National Lending | Pass | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 217,245 256,048
National Lending | Pass | Lease Financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 264,700 171,785
National Lending | Pass | Premium Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 336,364 361,105
National Lending | Pass | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 308,549 76,609
National Lending | Pass | Other Commercial Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 100,727 99,057
National Lending | Pass | Commercial Operating    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 2,054,699 1,742,413
National Lending | Pass | Warehouse Agreement Borrowings    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 293,375 262,924
National Lending | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 155,771 0
National Lending | Watch | Term Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 29,637 0
National Lending | Watch | Asset Based Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 62,512 0
National Lending | Watch | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 45,200 0
National Lending | Watch | Lease Financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 8,879 0
National Lending | Watch | Premium Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 284 0
National Lending | Watch | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 8,328 0
National Lending | Watch | Other Commercial Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 931 0
National Lending | Watch | Commercial Operating    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 155,771 0
National Lending | Watch | Warehouse Agreement Borrowings    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 53,839 144,993
National Lending | Special Mention | Term Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 24,501 36,792
National Lending | Special Mention | Asset Based Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 12,577 57,660
National Lending | Special Mention | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 13,657 36,635
National Lending | Special Mention | Lease Financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 2,808 4,917
National Lending | Special Mention | Premium Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 222 0
National Lending | Special Mention | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 74 8,381
National Lending | Special Mention | Other Commercial Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 608
National Lending | Special Mention | Commercial Operating    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 53,839 144,993
National Lending | Special Mention | Warehouse Agreement Borrowings    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 37,922 28,280
National Lending | Substandard | Term Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 21,249 19,024
National Lending | Substandard | Asset Based Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 5,317 378
National Lending | Substandard | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 5,071 3,824
National Lending | Substandard | Lease Financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 4,148 1,213
National Lending | Substandard | Premium Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 701 0
National Lending | Substandard | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 1,436 3,841
National Lending | Substandard | Other Commercial Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Substandard | Commercial Operating    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 37,922 28,280
National Lending | Substandard | Warehouse Agreement Borrowings    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 5,753 544
National Lending | Doubtful | Term Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 4,835 544
National Lending | Doubtful | Asset Based Lending    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Doubtful | Factoring    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Doubtful | Lease Financing    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 549 0
National Lending | Doubtful | Premium Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 369 0
National Lending | Doubtful | SBA/USDA    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Doubtful | Other Commercial Finance    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
National Lending | Doubtful | Commercial Operating    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 5,753 544
National Lending | Doubtful | Warehouse Agreement Borrowings    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
Community Banking    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 485,564 1,201,821
Community Banking | Commercial and Multi-Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 457,371 883,932
Community Banking | 1-4 Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 16,486 259,425
Community Banking | Agricultural Operating Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 11,707 58,464
Community Banking | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 353,410 1,172,917
Community Banking | Pass | Commercial and Multi-Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 336,236 875,933
Community Banking | Pass | 1-4 Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 15,648 257,575
Community Banking | Pass | Agricultural Operating Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 1,526 39,409
Community Banking | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 98,336 7,071
Community Banking | Watch | Commercial and Multi-Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 98,295 1,494
Community Banking | Watch | 1-4 Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 41 946
Community Banking | Watch | Agricultural Operating Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 4,631
Community Banking | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 9,588 9,468
Community Banking | Special Mention | Commercial and Multi-Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 4,049 2,884
Community Banking | Special Mention | 1-4 Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 609 708
Community Banking | Special Mention | Agricultural Operating Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 4,930 5,876
Community Banking | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 23,650 12,365
Community Banking | Substandard | Commercial and Multi-Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 18,211 3,621
Community Banking | Substandard | 1-4 Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 188 196
Community Banking | Substandard | Agricultural Operating Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 5,251 8,548
Community Banking | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 580 0
Community Banking | Doubtful | Commercial and Multi-Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 580 0
Community Banking | Doubtful | 1-4 Family Real Estate    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
Community Banking | Doubtful | Agricultural Operating Loans    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 0 0
Total Loans Evaluated For Credit Risk    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 3,086,923 3,380,975
Total Loans Evaluated For Credit Risk | Pass    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 2,701,484 3,178,254
Total Loans Evaluated For Credit Risk | Watch    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 254,107 7,071
Total Loans Evaluated For Credit Risk | Special Mention    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 63,427 154,461
Total Loans Evaluated For Credit Risk | Substandard    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases 61,572 40,645
Total Loans Evaluated For Credit Risk | Doubtful    
Financing Receivable, Credit Quality Indicator [Line Items]    
Total loans and leases $ 6,333 $ 544
v3.20.2
LOANS AND LEASES, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Financing Receivable, Past Due [Line Items]    
Total gross loans and leases $ 3,322,765 $ 3,658,847
Accruing and Non-accruing Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Total Past Due 52,300 40,825
Current 3,445,417 3,759,365
Total gross loans and leases 3,497,717 3,800,190
Accruing and Non-accruing Loans and Leases | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 48,832 36,903
Current 2,779,744 2,412,689
Total gross loans and leases 2,828,576 2,449,592
Accruing and Non-accruing Loans and Leases | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 3,468 1,081
Current 482,096 1,200,740
Total gross loans and leases 485,564 1,201,821
Accruing and Non-accruing Loans and Leases | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 2,841
Current 183,577 145,936
Total gross loans and leases 183,577 148,777
Accruing and Non-accruing Loans and Leases | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Past Due 15,220 9,157
Accruing and Non-accruing Loans and Leases | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 14,315 6,963
Accruing and Non-accruing Loans and Leases | 30-59 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 905 1,072
Accruing and Non-accruing Loans and Leases | 30-59 Days Past Due | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 1,122
Accruing and Non-accruing Loans and Leases | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Past Due 15,353 7,242
Accruing and Non-accruing Loans and Leases | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 15,239 6,487
Accruing and Non-accruing Loans and Leases | 60-89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 114 0
Accruing and Non-accruing Loans and Leases | 60-89 Days Past Due | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 755
Accruing and Non-accruing Loans and Leases | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Past Due 21,727 24,426
Accruing and Non-accruing Loans and Leases | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 19,278 23,453
Accruing and Non-accruing Loans and Leases | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 2,449 9
Accruing and Non-accruing Loans and Leases | Greater Than 89 Days Past Due | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 964
Accruing and Non-accruing Loans and Leases | Term Lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 22,141 17,170
Current 783,182 624,572
Total gross loans and leases 805,323 641,742
Accruing and Non-accruing Loans and Leases | Term Lending | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 11,900 2,162
Accruing and Non-accruing Loans and Leases | Term Lending | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 3,851 910
Accruing and Non-accruing Loans and Leases | Term Lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 6,390 14,098
Accruing and Non-accruing Loans and Leases | Asset Based Lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 17 0
Current 182,402 250,465
Total gross loans and leases 182,419 250,465
Accruing and Non-accruing Loans and Leases | Asset Based Lending | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 17 0
Accruing and Non-accruing Loans and Leases | Asset Based Lending | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Asset Based Lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Factoring | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Current 281,173 296,507
Total gross loans and leases 281,173 296,507
Accruing and Non-accruing Loans and Leases | Factoring | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Factoring | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Factoring | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Lease Financing | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 16,822 4,030
Current 264,262 173,885
Total gross loans and leases 281,084 177,915
Accruing and Non-accruing Loans and Leases | Lease Financing | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 194 1,160
Accruing and Non-accruing Loans and Leases | Lease Financing | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 9,746 1,134
Accruing and Non-accruing Loans and Leases | Lease Financing | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 6,882 1,736
Accruing and Non-accruing Loans and Leases | Premium Finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 4,339 8,687
Current 333,601 352,418
Total gross loans and leases 337,940 361,105
Accruing and Non-accruing Loans and Leases | Premium Finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,227 1,999
Accruing and Non-accruing Loans and Leases | Premium Finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 748 2,881
Accruing and Non-accruing Loans and Leases | Premium Finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 2,364 3,807
Accruing and Non-accruing Loans and Leases | SBA/USDA | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,027 338
Current 317,360 88,493
Total gross loans and leases 318,387 88,831
Accruing and Non-accruing Loans and Leases | SBA/USDA | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 83
Accruing and Non-accruing Loans and Leases | SBA/USDA | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | SBA/USDA | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,027 255
Accruing and Non-accruing Loans and Leases | Other Commercial Finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Current 101,658 99,665
Total gross loans and leases 101,658 99,665
Accruing and Non-accruing Loans and Leases | Other Commercial Finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Other Commercial Finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Other Commercial Finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Commercial Operating | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 44,346 30,225
Current 2,263,638 1,886,005
Total gross loans and leases 2,307,984 1,916,230
Accruing and Non-accruing Loans and Leases | Commercial Operating | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 13,338 5,404
Accruing and Non-accruing Loans and Leases | Commercial Operating | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 14,345 4,925
Accruing and Non-accruing Loans and Leases | Commercial Operating | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 16,663 19,896
Accruing and Non-accruing Loans and Leases | Consumer Credit Products | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,233 1,423
Current 88,576 105,371
Total gross loans and leases 89,809 106,794
Accruing and Non-accruing Loans and Leases | Consumer Credit Products | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 377 627
Accruing and Non-accruing Loans and Leases | Consumer Credit Products | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 358 557
Accruing and Non-accruing Loans and Leases | Consumer Credit Products | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 499 239
Accruing and Non-accruing Loans and Leases | Other Consumer Finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,509 3,015
Current 132,833 158,389
Total gross loans and leases 134,342 161,404
Accruing and Non-accruing Loans and Leases | Other Consumer Finance | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 600 932
Accruing and Non-accruing Loans and Leases | Other Consumer Finance | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 536 1,005
Accruing and Non-accruing Loans and Leases | Other Consumer Finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 373 1,078
Accruing and Non-accruing Loans and Leases | Consumer | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 2,743 4,438
Current 221,408 263,760
Total gross loans and leases 224,151 268,198
Accruing and Non-accruing Loans and Leases | Consumer | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 977 1,559
Accruing and Non-accruing Loans and Leases | Consumer | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 894 1,562
Accruing and Non-accruing Loans and Leases | Consumer | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 872 1,317
Accruing and Non-accruing Loans and Leases | Tax Services | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,743 2,240
Current 1,323 0
Total gross loans and leases 3,066 2,240
Accruing and Non-accruing Loans and Leases | Tax Services | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Tax Services | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Tax Services | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,743 2,240
Accruing and Non-accruing Loans and Leases | Warehouse Agreement Borrowings | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Current 293,375 262,924
Total gross loans and leases 293,375 262,924
Accruing and Non-accruing Loans and Leases | Warehouse Agreement Borrowings | 30-59 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Warehouse Agreement Borrowings | 60-89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Warehouse Agreement Borrowings | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Commercial and Multi-Family Real Estate | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 630 565
Current 456,741 883,367
Total gross loans and leases 457,371 883,932
Accruing and Non-accruing Loans and Leases | Commercial and Multi-Family Real Estate | 30-59 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 565
Accruing and Non-accruing Loans and Leases | Commercial and Multi-Family Real Estate | 60-89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Commercial and Multi-Family Real Estate | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 630 0
Accruing and Non-accruing Loans and Leases | 1-4 Family Real Estate | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,069 467
Current 15,417 258,958
Total gross loans and leases 16,486 259,425
Accruing and Non-accruing Loans and Leases | 1-4 Family Real Estate | 30-59 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 905 458
Accruing and Non-accruing Loans and Leases | 1-4 Family Real Estate | 60-89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 114 0
Accruing and Non-accruing Loans and Leases | 1-4 Family Real Estate | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 50 9
Accruing and Non-accruing Loans and Leases | Agricultural Operating Loans | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,769 49
Current 9,938 58,415
Total gross loans and leases 11,707 58,464
Accruing and Non-accruing Loans and Leases | Agricultural Operating Loans | 30-59 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 49
Accruing and Non-accruing Loans and Leases | Agricultural Operating Loans | 60-89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 0 0
Accruing and Non-accruing Loans and Leases | Agricultural Operating Loans | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Total Past Due 1,769 0
Accruing and Non-accruing Loans and Leases | Loans Held for Investment    
Financing Receivable, Past Due [Line Items]    
Total Past Due 52,300 37,984
Current 3,261,840 3,613,429
Total gross loans and leases 3,314,140 3,651,413
Accruing and Non-accruing Loans and Leases | Loans Held for Investment | 30-59 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Past Due 15,220 8,035
Accruing and Non-accruing Loans and Leases | Loans Held for Investment | 60-89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Past Due 15,353 6,487
Accruing and Non-accruing Loans and Leases | Loans Held for Investment | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Total Past Due 21,727 23,462
Non-performing Loans and Leases    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 23,952 14,422
Total gross loans and leases 34,018 26,521
Non-performing Loans and Leases | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 21,553 14,378
Total gross loans and leases 31,569 25,513
Non-performing Loans and Leases | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 2,399 44
Total gross loans and leases 2,449 44
Non-performing Loans and Leases | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 0 964
Non-performing Loans and Leases | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 10,066 12,099
Non-performing Loans and Leases | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 10,016 11,135
Non-performing Loans and Leases | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 50 0
Non-performing Loans and Leases | Greater Than 89 Days Past Due | Loans held for sale    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 964
Non-performing Loans and Leases | Term Lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 16,274 12,146
Total gross loans and leases 16,540 14,387
Non-performing Loans and Leases | Term Lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 266 2,241
Non-performing Loans and Leases | Asset Based Lending | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 0 0
Non-performing Loans and Leases | Asset Based Lending | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Non-performing Loans and Leases | Factoring | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 1,096 1,669
Total gross loans and leases 1,096 1,669
Non-performing Loans and Leases | Factoring | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Non-performing Loans and Leases | Lease Financing | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 3,583 308
Total gross loans and leases 7,927 1,838
Non-performing Loans and Leases | Lease Financing | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 4,344 1,530
Non-performing Loans and Leases | Premium Finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 2,364 3,807
Non-performing Loans and Leases | Premium Finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 2,364 3,807
Non-performing Loans and Leases | SBA/USDA | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 600 255
Total gross loans and leases 1,027 255
Non-performing Loans and Leases | SBA/USDA | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 427 0
Non-performing Loans and Leases | Other Commercial Finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 0 0
Non-performing Loans and Leases | Other Commercial Finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Non-performing Loans and Leases | Commercial Operating | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 21,553 14,378
Total gross loans and leases 28,954 21,956
Non-performing Loans and Leases | Commercial Operating | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 7,401 7,578
Non-performing Loans and Leases | Consumer Credit Products | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 499 239
Non-performing Loans and Leases | Consumer Credit Products | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 499 239
Non-performing Loans and Leases | Other Consumer Finance | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 373 1,078
Non-performing Loans and Leases | Other Consumer Finance | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 373 1,078
Non-performing Loans and Leases | Consumer | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 872 1,317
Non-performing Loans and Leases | Consumer | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 872 1,317
Non-performing Loans and Leases | Tax Services | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 1,743 2,240
Non-performing Loans and Leases | Tax Services | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 1,743 2,240
Non-performing Loans and Leases | Warehouse Agreement Borrowings | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Total gross loans and leases 0 0
Non-performing Loans and Leases | Warehouse Agreement Borrowings | Greater Than 89 Days Past Due | National Lending    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Non-performing Loans and Leases | Commercial and Multi-Family Real Estate | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 580 0
Total gross loans and leases 630 0
Non-performing Loans and Leases | Commercial and Multi-Family Real Estate | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 50 0
Non-performing Loans and Leases | 1-4 Family Real Estate | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 50 44
Total gross loans and leases 50 44
Non-performing Loans and Leases | 1-4 Family Real Estate | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Non-performing Loans and Leases | Agricultural Operating Loans | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 1,769 0
Total gross loans and leases 1,769 0
Non-performing Loans and Leases | Agricultural Operating Loans | Greater Than 89 Days Past Due | Community Banking    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 0 0
Non-performing Loans and Leases | Loans Held for Investment    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance 23,952 14,422
Total gross loans and leases 34,018 25,557
Non-performing Loans and Leases | Loans Held for Investment | Greater Than 89 Days Past Due    
Financing Receivable, Past Due [Line Items]    
Non-accrual balance $ 10,066 $ 11,135
v3.20.2
LOANS AND LEASES, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Loans without specific valuation allowance [Abstract]    
Recorded Balance $ 36,900 $ 23,057
Unpaid Principal Balance 40,401 25,499
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 14,378  
Unpaid Principal Balance 14,390  
Specific Allowance 5,119  
Average Recorded Investment 43,463 19,300
Recognized Interest Income 521 560
National Lending    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 30,375 19,714
Unpaid Principal Balance 33,876 22,156
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 14,218 10,582
Unpaid Principal Balance 14,230 11,949
Specific Allowance 4,978 1,875
Average Recorded Investment 39,934 17,376
Recognized Interest Income 558 433
National Lending | Term Lending    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 17,349 12,644
Unpaid Principal Balance 18,823 13,944
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 8,736 6,924
Unpaid Principal Balance 8,736 6,951
Specific Allowance 3,155 450
Average Recorded Investment 26,126 6,119
Recognized Interest Income 386 344
National Lending | Asset Based Lending    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 3,914 378
Unpaid Principal Balance 3,914 378
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 1,403  
Unpaid Principal Balance 1,403  
Specific Allowance 355  
Average Recorded Investment 1,339 1,347
Recognized Interest Income 0 0
National Lending | Factoring    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 3,892 1,563
Unpaid Principal Balance 4,967 2,638
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 1,179 2,261
Unpaid Principal Balance 1,191 3,601
Specific Allowance 274 1,262
Average Recorded Investment 4,075 4,751
Recognized Interest Income 13 5
National Lending | Lease Financing    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 1,797 1,062
Unpaid Principal Balance 1,805 1,062
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 2,900 151
Unpaid Principal Balance 2,900 151
Specific Allowance 1,194 112
Average Recorded Investment 3,370 3,313
Recognized Interest Income 16 17
National Lending | SBA/USDA    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 1,436 2,595
Unpaid Principal Balance 2,263 2,595
Loans with a specific valuation allowance [Abstract]    
Recorded Balance   1,246
Unpaid Principal Balance   1,246
Specific Allowance   51
Average Recorded Investment 3,164 639
Recognized Interest Income 0 0
National Lending | Commercial Operating    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 28,388 18,242
Unpaid Principal Balance 31,772 20,617
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 14,218 10,582
Unpaid Principal Balance 14,230 11,949
Specific Allowance 4,978 1,875
Average Recorded Investment 38,074 16,169
Recognized Interest Income 415 366
National Lending | Other Consumer Finance    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 1,987 1,472
Unpaid Principal Balance 2,104 1,539
Loans with a specific valuation allowance [Abstract]    
Average Recorded Investment 1,860 1,207
Recognized Interest Income 143 67
National Lending | Consumer    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 1,987 1,472
Unpaid Principal Balance 2,104 1,539
Loans with a specific valuation allowance [Abstract]    
Average Recorded Investment 1,860 1,207
Recognized Interest Income 143 67
Community Banking    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 6,525 3,343
Unpaid Principal Balance 6,525 3,343
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 160  
Unpaid Principal Balance 160  
Specific Allowance 141  
Average Recorded Investment 3,529 1,924
Recognized Interest Income (37) 127
Community Banking | Commercial and Multi-Family Real Estate    
Loans without specific valuation allowance [Abstract]    
Recorded Balance   258
Unpaid Principal Balance   258
Loans with a specific valuation allowance [Abstract]    
Recorded Balance 160  
Unpaid Principal Balance 160  
Specific Allowance 141  
Average Recorded Investment 466 269
Recognized Interest Income 27 14
Community Banking | 1-4 Family Real Estate    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 104 100
Unpaid Principal Balance 104 100
Loans with a specific valuation allowance [Abstract]    
Average Recorded Investment 114 172
Recognized Interest Income 10 6
Community Banking | Agricultural Operating Loans    
Loans without specific valuation allowance [Abstract]    
Recorded Balance 6,421 2,985
Unpaid Principal Balance 6,421 2,985
Loans with a specific valuation allowance [Abstract]    
Average Recorded Investment 2,949 1,483
Recognized Interest Income $ (74) $ 107
v3.20.2
LOANS AND LEASES, NET - Troubled Debt Restructured Loans (Details) - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
National Lending    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Loans modified in TDR, subsequent default $ 3.9 $ 0.2
Community Banking    
Financing Receivable, Troubled Debt Restructuring [Line Items]    
Loans modified in TDR, subsequent default $ 3.3 $ 0.9
v3.20.2
LOANS AND LEASES, NET - Additional Information (Details) - USD ($)
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Loans and leases to held for sale                         $ 542,101,000 $ 99,992,000 $ 15,068,000
Originations of loans held-for-sale                         98,798,000 171,260,000 1,691,000
Held for sale loans proceeds                         590,800,000    
Gain (loss) on sales of consumer loans                         7,700,000 5,100,000  
Proceeds from sales                         319,123,000 125,357,000 17,621,000
Carrying amount of direct financing and sales-type leases subject to residual value guarantees $ 8,700,000                       8,700,000    
Provision for loan and lease losses 8,980,000 $ 15,093,000 $ 37,296,000 $ 3,407,000 $ 4,121,000 $ 9,112,000 $ 33,318,000 $ 9,099,000 $ 4,706,000 $ 5,315,000 $ 18,343,000 $ 1,068,000 64,776,000 55,650,000 $ 29,432,000
Special mention commercial finance loans and leases rated as watch 117,000,000.0       0               117,000,000.0 0  
Total loans and leases 3,322,765,000       3,658,847,000               3,322,765,000 3,658,847,000  
Watch and Special Mention                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 209,600,000       145,000,000.0               209,600,000 145,000,000.0  
Covid-19 Pandemic                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Provision for loan and lease losses                         $ 26,400,000    
Trial modifications, threshold of past due days prior to onset of pandemic effects                         30 days    
Short term payment deferral modifications                         $ 170,000,000.0    
Other active modifications                         $ 23,300,000    
Covid-19 Pandemic | Minimum                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Trial modifications, payment deferral period                         30 days    
Covid-19 Pandemic | Maximum                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Trial modifications, payment deferral period                         6 months    
Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 34,018,000       26,521,000               $ 34,018,000 26,521,000  
Non-accrual balance 23,952,000       14,422,000               23,952,000 14,422,000  
Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance 10,066,000       12,099,000               10,066,000 12,099,000  
National Lending                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Proceeds from sales                         183,508,000 121,071,000  
Financing receivable, TDR, postmodification                         9,500,000 2,900,000  
National Lending | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 31,569,000       25,513,000               31,569,000 25,513,000  
Non-accrual balance 21,553,000       14,378,000               21,553,000 14,378,000  
National Lending | Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance 10,016,000       11,135,000               10,016,000 11,135,000  
Community Banking                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Loans and leases to held for sale                         542,100,000    
Proceeds from sales                         407,296,000 0  
Financing receivable, TDR, postmodification                         5,200,000 2,500,000  
Community Banking | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 2,449,000       44,000               2,449,000 44,000  
Non-accrual balance 2,399,000       44,000               2,399,000 44,000  
Community Banking | Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance 50,000       0               50,000 0  
Consumer Credit Products | National Lending                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Loans and leases to held for sale                           100,000,000.0  
Consumer Credit Products | National Lending | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 499,000       239,000               499,000 239,000  
Non-accrual balance 0       0               0 0  
Consumer Credit Products | National Lending | Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance 499,000       239,000               499,000 239,000  
SBA/USDA | National Lending                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Originations of loans held-for-sale                         98,800,000 171,300,000  
SBA/USDA | National Lending | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 1,027,000       255,000               1,027,000 255,000  
Non-accrual balance 600,000       255,000               600,000 255,000  
SBA/USDA | National Lending | Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance 427,000       0               427,000 0  
Consumer | Watch and Special Mention                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 224,200,000       268,200,000               224,200,000 268,200,000  
Consumer | National Lending | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 872,000       1,317,000               872,000 1,317,000  
Non-accrual balance 0       0               0 0  
Consumer | National Lending | Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance 872,000       1,317,000               872,000 1,317,000  
Tax Services | Watch and Special Mention                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 3,100,000       2,200,000               3,100,000 2,200,000  
Tax Services | National Lending | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Total loans and leases 1,743,000       2,240,000               1,743,000 2,240,000  
Non-accrual balance 0       0               0 0  
Tax Services | National Lending | Greater Than 89 Days Past Due | Non-performing Loans and Leases                              
Accounts, Notes, Loans and Financing Receivable [Line Items]                              
Non-accrual balance $ 1,743,000       $ 2,240,000               $ 1,743,000 $ 2,240,000  
v3.20.2
EARNINGS PER COMMON SHARE (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Basic income per common share:                              
Net income attributable to Meta Financial Group, Inc. $ 13,158 $ 18,190 $ 52,304 $ 21,068 $ 20,195 $ 29,291 $ 32,120 $ 15,398 $ 8,722 $ 6,792 $ 31,436 $ 4,670 $ 104,720 $ 97,004 $ 51,620
Weighted average common shares outstanding (in shares)                         35,651,709 38,880,919 30,737,499
Basic income per common share (in dollars per share) $ 0.38 $ 0.53 $ 1.45 $ 0.56 $ 0.53 $ 0.75 $ 0.81 $ 0.39 $ 0.24 $ 0.22 $ 1.07 $ 0.15 $ 2.94 $ 2.49 $ 1.68
Basic income per common share:                              
Net income attributable to Meta Financial Group, Inc. $ 13,158 $ 18,190 $ 52,304 $ 21,068 $ 20,195 $ 29,291 $ 32,120 $ 15,398 $ 8,722 $ 6,792 $ 31,436 $ 4,670 $ 104,720 $ 97,004 $ 51,620
Weighted average common shares outstanding (in shares)                         35,651,709 38,880,919 30,737,499
Outstanding options - based upon the two-class method (in shares)                         0 40,718 115,551
Weighted average diluted common shares outstanding (in shares)                         35,651,709 38,921,637 30,853,050
Diluted income per common share (in dollars per share) $ 0.38 $ 0.53 $ 1.45 $ 0.56 $ 0.53 $ 0.75 $ 0.81 $ 0.39 $ 0.24 $ 0.22 $ 1.06 $ 0.15 $ 2.94 $ 2.49 $ 1.67
v3.20.2
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 88,826 $ 95,054  
Less: accumulated depreciation and amortization (47,218) (49,122)  
Net book value 41,608 45,932  
Depreciation expense of premises, furniture, and equipment 9,200 8,600 $ 5,700
Land      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 1,354 2,932  
Buildings      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 20,170 30,906  
Furniture, Fixtures, and Equipment      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 67,302 $ 61,216  
v3.20.2
RENTAL EQUIPMENT, NET - Schedule of Rental Equipment (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Property, Plant and Equipment [Line Items]    
Total $ 261,844 $ 254,881
Accumulated depreciation (57,601) (46,344)
Unamortized initial direct costs 1,721 0
Net book value 205,964 208,537
Computers and IT networking equipment    
Property, Plant and Equipment [Line Items]    
Total 15,926 37,352
Motor vehicles and other    
Property, Plant and Equipment [Line Items]    
Total 52,913 23,884
Other furniture and equipment    
Property, Plant and Equipment [Line Items]    
Total 74,197 77,140
Solar panels and equipment    
Property, Plant and Equipment [Line Items]    
Total $ 118,808 $ 116,505
v3.20.2
RENTAL EQUIPMENT, NET - Schedule of Operating Leases, Future Minimum Payments Receivable (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Property, Plant and Equipment [Abstract]  
2021 $ 30,509
2022 26,461
2023 22,737
2024 16,609
2025 11,834
Thereafter 17,797
Total undiscounted future minimum lease payments receivable for operating leases $ 125,947
v3.20.2
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS - Foreclosed and Repossessed Assets (Details) - Foreclosed Property - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Real Estate [Line Items]    
Other real estate, beginning of period $ 29,494 $ 31,638
Additions 9,983 190
Write-downs 568 432
Net proceeds from sale 23,992 1,917
Gain (loss) on sale (4,960) 15
Total reductions 29,520 2,334
Other real estate, end of period $ 9,957 $ 29,494
v3.20.2
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS - Narrative (Details) - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Real Estate [Line Items]    
Valuation allowance for repossessed assets $ 500,000 $ 100,000
Foreclosed Property    
Real Estate [Line Items]    
Gain (loss) on sale (4,960,000) 15,000
Community Bank    
Real Estate [Line Items]    
Loans and leases in the process of foreclosure 0 $ 0
Agricultural Operating Loans | Agriculture Real Estate Customer    
Real Estate [Line Items]    
Other real estate owned sold 28,100,000  
Gain (loss) on sale (5,039,000)  
Deferred rental income 1,096,000  
OREO expenses 200,000  
Agricultural Operating Loans | Foreclosed Property    
Real Estate [Line Items]    
Gain (loss) on sale (5,000,000.0)  
Agricultural Operating Loans | Foreclosed Property | Community Bank    
Real Estate [Line Items]    
Deferred rental income $ 1,100,000  
v3.20.2
FORECLOSED REAL ESTATE AND REPOSSESSED ASSETS - Sale Transaction of Other Real Estate (Details) - Agriculture Real Estate Customer - Agricultural Operating Loans
$ in Thousands
 12 Months Ended
Sep. 30, 2020
USD ($)
Real Estate [Line Items]  
Purchase price $ 23,083
Carrying value of OREO 28,122
Loss on sale (5,039)
Deferred income recognized 1,096
Net impact $ (3,943)
v3.20.2
GOODWILL AND INTANGIBLE ASSETS - Goodwill and Intangible Assets (Details) - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2020
Sep. 30, 2019
Goodwill [Roll Forward]          
Balance, beginning of period $ 309,505,000 $ 303,270,000      
Acquisitions 0 0      
Measurement Period Adjustments   6,235,000      
Impairment 0 0 $ 0    
Balance, end of period 309,505,000 309,505,000 303,270,000    
Intangible Assets [Roll Forward]          
Balance, beginning of period 52,810,000 70,719,000      
Acquisitions during the period 35,000 115,000      
Amortization during the period (10,997,000) (17,711,000) (9,641,000)    
Write-offs during the period (156,000) (313,000)      
Gross carrying amount       $ 109,305,000 $ 109,895,000
Accumulated amortization       (57,175,000) (46,178,000)
Accumulated impairment       (10,438,000) (10,907,000)
Balance, end of period 41,692,000 52,810,000 70,719,000    
Anticipated intangible amortization [Abstract]          
2021       8,548,000  
2022       6,422,000  
2023       5,104,000  
2024       4,387,000  
2025       3,830,000  
Thereafter       13,401,000  
Total anticipated intangible amortization 52,810,000 52,810,000 70,719,000 41,692,000 52,810,000
Trademark          
Intangible Assets [Roll Forward]          
Balance, beginning of period 11,959,000 12,987,000      
Acquisitions during the period 0 0      
Amortization during the period (1,058,000) (1,028,000)      
Write-offs during the period 0 0      
Gross carrying amount       14,624,000 14,624,000
Accumulated amortization       (3,723,000) (2,665,000)
Accumulated impairment       0 0
Balance, end of period 10,901,000 11,959,000 12,987,000    
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 11,959,000 11,959,000 12,987,000 10,901,000 11,959,000
Non-Compete          
Intangible Assets [Roll Forward]          
Balance, beginning of period 827,000 1,297,000      
Acquisitions during the period 0 0      
Amortization during the period (405,000) (470,000)      
Write-offs during the period 0 0      
Gross carrying amount       2,480,000 2,480,000
Accumulated amortization       (2,058,000) (1,653,000)
Accumulated impairment       0 0
Balance, end of period 422,000 827,000 1,297,000    
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 422,000 1,297,000 1,297,000 422,000 827,000
Customer Relationships          
Intangible Assets [Roll Forward]          
Balance, beginning of period 33,207,000 48,455,000      
Acquisitions during the period 0 0      
Amortization during the period (8,874,000) (15,248,000)      
Write-offs during the period 0 0      
Gross carrying amount       82,088,000 82,088,000
Accumulated amortization       (47,507,000) (38,633,000)
Accumulated impairment       (10,248,000) (10,248,000)
Balance, end of period 24,333,000 33,207,000 48,455,000    
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 33,207,000 33,207,000 48,455,000 24,333,000 33,207,000
Technology/Other          
Intangible Assets [Roll Forward]          
Balance, beginning of period 6,817,000 7,980,000      
Acquisitions during the period 35,000 115,000      
Amortization during the period (660,000) (965,000)      
Write-offs during the period (156,000) (313,000)      
Gross carrying amount       10,113,000 10,703,000
Accumulated amortization       (3,887,000) (3,227,000)
Accumulated impairment       (190,000) (659,000)
Balance, end of period 6,036,000 6,817,000 7,980,000    
Anticipated intangible amortization [Abstract]          
Total anticipated intangible amortization 6,817,000 6,817,000 7,980,000 $ 6,036,000 $ 6,817,000
Payments          
Goodwill [Roll Forward]          
Balance, beginning of period 87,145,000 87,145,000      
Acquisitions 0 0      
Measurement Period Adjustments   0      
Impairment 0 0      
Balance, end of period 87,145,000 87,145,000 87,145,000    
Banking          
Goodwill [Roll Forward]          
Balance, beginning of period 222,360,000 216,125,000      
Acquisitions 0 0      
Measurement Period Adjustments   6,235,000      
Impairment 0 0      
Balance, end of period 222,360,000 222,360,000 216,125,000    
Corporate Services/Other          
Goodwill [Roll Forward]          
Balance, beginning of period 0 0      
Acquisitions 0 0      
Measurement Period Adjustments   0      
Impairment 0 0      
Balance, end of period $ 0 $ 0 $ 0    
Refund Advantage Financial Services Inc | Trademark | Minimum          
Intangible Assets [Roll Forward]          
Book amortization period 5 years 5 years      
Refund Advantage Financial Services Inc | Trademark | Maximum          
Intangible Assets [Roll Forward]          
Book amortization period 15 years 15 years      
Refund Advantage Financial Services Inc | Non-Compete | Minimum          
Intangible Assets [Roll Forward]          
Book amortization period 3 years 3 years      
Refund Advantage Financial Services Inc | Non-Compete | Maximum          
Intangible Assets [Roll Forward]          
Book amortization period 5 years 5 years      
Refund Advantage Financial Services Inc | Customer Relationships | Minimum          
Intangible Assets [Roll Forward]          
Book amortization period 10 years 10 years      
Refund Advantage Financial Services Inc | Customer Relationships | Maximum          
Intangible Assets [Roll Forward]          
Book amortization period 30 years 30 years      
Refund Advantage Financial Services Inc | Technology/Other | Minimum          
Intangible Assets [Roll Forward]          
Book amortization period 3 years 3 years      
Refund Advantage Financial Services Inc | Technology/Other | Maximum          
Intangible Assets [Roll Forward]          
Book amortization period 20 years 20 years      
v3.20.2
GOODWILL AND INTANGIBLE ASSETS - Narrative (Details)
 12 Months Ended
Sep. 30, 2020
USD ($)
Lease
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2020
USD ($)
Finite-Lived Intangible Assets [Line Items]        
Goodwill $ 309,505,000 $ 309,505,000 $ 303,270,000  
Goodwill impairment 0     $ 0
Impairments to intangible assets $ 0 $ 111,000 $ 18,000  
DC Solar        
Finite-Lived Intangible Assets [Line Items]        
Number of operating leases | Lease 3      
Net increase to liabilities and goodwill recognized $ 3,800,000      
Crestmark Bancorp, Inc.        
Finite-Lived Intangible Assets [Line Items]        
Number of operating leases | Lease 2      
v3.20.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Narrative (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Leases [Abstract]  
Operating lease, right-of-use asset $ 25,800
Total operating lease liabilities $ 27,073
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] us-gaap:OtherAssets
Operating Lease, Liability, Statement of Financial Position [Extensible List] us-gaap:AccruedLiabilitiesCurrentAndNoncurrent
v3.20.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Undiscounted Future Minimum Operating Lease Payments (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Leases [Abstract]  
2021 $ 3,742
2022 3,479
2023 2,799
2024 2,808
2025 2,755
Thereafter 15,765
Total leases commitments 31,348
Discount (4,275)
Total operating lease liabilities $ 27,073
v3.20.2
OPERATING LEASE RIGHT-OF-USE ASSETS AND LIABILITIES - Lease Costs (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
USD ($)
Leases [Abstract]  
Weighted-average discount rate 2.35%
Weighted-average remaining lease term (years) 11 years 4 months 20 days
Lease expense $ 3,454
Short-term and variable lease cost 496
Sublease income (733)
Total lease cost for operating leases $ 3,217
v3.20.2
TIME CERTIFICATES OF DEPOSIT (Details) - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
IRA deposit accounts permanently insured by DIF under management of FDIC $ 250,000  
Time certificates of deposits in denominations of $250,000 or more 231,000,000.0 $ 51,400,000
Time Deposits, Fiscal Year Maturity [Abstract]    
2021 247,971,000  
2022 25,663,000  
2023 538,000  
2024 0  
2025 0  
Total 274,172,000  
Wholesale deposits 348,416,000 $ 1,557,268,000
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC 250,000  
Wholesale Deposits    
Time Deposits, Fiscal Year Maturity [Abstract]    
Wholesale deposits $ 253,900,000  
v3.20.2
SHORT-TERM AND LONG-TERM BORROWINGS - Short Term Debt (Details) - USD ($)
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Short-term Debt [Line Items]    
Short-term borrowings $ 0 $ 646,019,000
Pledged securities against specific FHLB advances, fair value 673,800,000 812,200,000
Loans pledged as collateral 333,800,000 928,800,000
Securities sold under agreements to repurchase, total 0 4,000,000.0
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract]    
Highest month-end balance 2,550,000 4,306,000
Average balance $ 328,000 $ 3,542,000
Weighted average interest rate for the fiscal year 2.00% 2.67%
Weighted average interest rate at fiscal year end 0.00% 2.41%
Securities pledged as collateral for securities sold under agreement to repurchase, fair value $ 0 $ 4,900,000
Line of credit facility, maximum borrowing capacity 25,000,000.0  
Overnight federal funds purchased    
Short-term Debt [Line Items]    
Short-term borrowings 0 642,000,000
Repurchase agreements    
Short-term Debt [Line Items]    
Short-term borrowings 0 4,019,000
Federal home loan bank advances    
Short-term Debt [Line Items]    
Short-term borrowings 0 0
FHLB | Overnight federal funds purchased    
Short-term Debt [Line Items]    
Short-term borrowings $ 0 477,000,000.0
Other Financial Institutions | Overnight federal funds purchased    
Short-term Debt [Line Items]    
Short-term borrowings   $ 165,000,000.0
v3.20.2
SHORT-TERM AND LONG-TERM BORROWINGS - Long Term Debt (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Jun. 30, 2020
Debt Instrument [Line Items]          
Long-term FHLB advances $ 0 $ 0 $ 110,000   $ 110,000
Trust preferred securities 13,661 13,661 13,661    
Subordinated debentures (net of issuance costs) 73,807 73,807 73,644    
Other long-term borrowings 10,756 10,756 18,533    
Discounted leases 10,600 10,600      
Capital lease obligations 100 100      
Other expense   52,818 44,111 $ 29,489  
Weighted-average cost         2.41%
Maturities of Long-term Debt          
2021 5,442 5,442      
2022 2,735 2,735      
2023 1,853 1,853      
2024 726 726      
2025 0 0      
Thereafter 87,468 87,468      
Total long-term borrowings 98,224 98,224 $ 215,838    
Federal home loan bank advances          
Debt Instrument [Line Items]          
Other expense 1,700        
Maturities of Long-term Debt          
2021 0 0      
2022 0 0      
2023 0 0      
2024 0 0      
2025 0 0      
Thereafter 0 0      
Total long-term borrowings 0 0      
Trust preferred securities          
Maturities of Long-term Debt          
2021 0 0      
2022 0 0      
2023 0 0      
2024 0 0      
2025 0 0      
Thereafter 13,661 13,661      
Total long-term borrowings 13,661 13,661      
Subordinated debentures          
Maturities of Long-term Debt          
2021 0 0      
2022 0 0      
2023 0 0      
2024 0 0      
2025 0 0      
Thereafter 73,807 73,807      
Total long-term borrowings 73,807 73,807      
Other long-term borrowings          
Maturities of Long-term Debt          
2021 5,442 5,442      
2022 2,735 2,735      
2023 1,853 1,853      
2024 726 726      
2025 0 0      
Thereafter 0 0      
Total long-term borrowings $ 10,756 $ 10,756      
v3.20.2
SHORT-TERM AND LONG-TERM BORROWINGS - Long Term Debt Narrative (Details)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2020
USD ($)
Period
$ / shares
shares
Sep. 30, 2019
USD ($)
Debt Instrument [Line Items]    
Subordinated debentures (net of issuance costs) $ 73,807 $ 73,644
First Midwest Financial Capital Trust I    
Debt Instrument [Line Items]    
Equity method investment, ownership percentage 100.00%  
Issuance of trust preferred securities (in shares) | shares 10,000  
Number of authorized shares of trust preferred securities issued (in shares) | shares 10,310  
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period 10  
Redemption price per capital security (in dollars per share) | $ / shares $ 1,000  
First Midwest Financial Capital Trust I | LIBOR    
Debt Instrument [Line Items]    
Basis spread on variable rate 3.75%  
Effective interest rate 4.01% 5.81%
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 | Subordinated debentures    
Debt Instrument [Line Items]    
Cash acquired due to acquisitions $ 75,000  
Interest rate, stated percentage 5.75%  
Net proceeds from issuance of debt, before issuance costs $ 73,900  
Subordinated debentures (net of issuance costs) 73,800  
Debt issuance costs $ 1,200  
Weighted Average | First Midwest Financial Capital Trust I | LIBOR    
Debt Instrument [Line Items]    
Effective interest rate 12.50%  
Crestmark Bancorp, Inc.    
Debt Instrument [Line Items]    
Effective interest rate 3.23%  
Long-term borrowings $ 3,400  
Debt instrument, term 30 years  
Crestmark Bancorp, Inc. | LIBOR    
Debt Instrument [Line Items]    
Basis spread on variable rate 3.00%  
v3.20.2
STOCKHOLDERS' EQUITY (Details) - USD ($)
$ / shares in Units, $ in Millions
 12 Months Ended
Jun. 25, 2019
Sep. 30, 2020
Sep. 30, 2019
Nov. 20, 2019
Class of Stock [Line Items]        
Stock repurchased during period (in shares)   103,830 104,219  
Stock repurchased during period, value   $ 3.2 $ 3.4  
Treasury Stock, Common        
Class of Stock [Line Items]        
Stock repurchased and retired during the period (in shares) 114,558      
Retirement of treasury stock $ 5.0      
      Common Stock        
Class of Stock [Line Items]        
Stock repurchased and retired during the period (in shares)   3,669,597    
Average cost per share (in dollars per share)   $ 33.04    
Number of shares authorized to be repurchased (in shares)       7,500,000
Remaining number of shares authorized to be repurchased (in shares)   4,149,631    
v3.20.2
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details)
 12 Months Ended
Oct. 01, 2020
Sep. 30, 2020
USD ($)
hours
$ / shares
shares
Sep. 30, 2019
USD ($)
$ / shares
shares
Sep. 30, 2018
USD ($)
$ / shares
shares
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]        
Number of hours of employment required for ESOP | hours   1,000    
Years of employment to be eligible for ESOP   1 year    
Eligible age for ESOP   21 years    
Employee Stock Ownership Plan (ESOP), Expense | $   $ 3,000,000.0 $ 2,900,000 $ 2,100,000
Percentage of benefits vested after credited service   100.00%    
ESOP award vesting period   7 years    
Years of credited service   7 years    
Number of shares (ESOP) released (in shares)   157,909 98,753 72,996
Fair value of shares (ESOP) released (in dollars per share) | $ / shares   $ 19.22 $ 32.61 $ 27.55
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares)   59,865 79,926 6,687
Shares purchased for dividend reinvestment (in shares)   5,662 5,336 3,987
Year-end ESOP shares [Abstract]        
Allocated shares (in shares)   809,116 778,088 812,346
Unearned shares (in shares)   0 0 0
Total ESOP shares (in shares)   809,116 778,088 812,346
Fair value of unearned shares | $   $ 0 $ 0 $ 0
Contribution expense to profit sharing plan included in compensation and benefits | $   $ 3,100,000 $ 3,000,000.0 $ 2,200,000
Subsequent Event        
Defined Benefit Plan Disclosure [Line Items]        
Employee contributions matched 100.00%      
Percent of eligible compensation contributed 4.00%      
v3.20.2
STOCK COMPENSATION - Additional Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
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 $2,567, $3,230, and $3,139, respectively $ 7,656 $ 9,716 $ 7,878
Tax effects of employee's stock-based compensation expense recognized income 2,567 $ 3,230 $ 3,139
Stock based compensation expense not yet recognized in income $ 7,500    
Weighted average remaining period for unrecognized stock based compensation 2 years 6 months 7 days    
Period that options are issued 10 years    
Percentage of options vesting at either grant date or over four year period 100.00%    
Period that options vest 4 years    
Granted (in shares) 0 0 0
Exercised $ 1,011 $ 1,842 $ 1,900
Fair value of share granted (in shares) 191,372 315,802  
Award vesting period eight years    
Director      
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Fair value of share granted (in shares) 800,000 1,000,000.0 1,100,000
v3.20.2
STOCK COMPENSATION - Summary of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Number of Shares      
Options outstanding, beginning of period (in shares) 59,835 155,961  
Granted (in shares) 0 0 0
Exercised (in shares) (59,835) (93,099)  
Forfeited or expired (in shares) 0 (3,027)  
Options outstanding, end of period (in shares) 0 59,835 155,961
Options exercisable end of year (in shares) 0 59,835  
Weighted Average Exercise Price      
Options outstanding, beginning of period (in dollars per share) $ 8.06 $ 8.48  
Granted (in dollars per share) 0 0  
Exercised (in dollars per share) 8.06 8.68  
Forfeited or expired (in dollars per share) 0 10.60  
Options outstanding, end of period (in dollars per share) 0 8.06 $ 8.48
Options exercisable end of year (in dollars per share) $ 0 $ 8.06  
Weighted Average Remaining Contractual Term (Yrs)      
Options outstanding , weighted average remaining contractual term (in years) 0 years 1 year 6 months 14 days 1 year 9 months 10 days
Options exercised, weighted average remaining contractual term (in years) 1 year    
Options exercisable end of year, weighted average remaining contractual term (in years) 0 years 1 year 6 months 14 days  
Aggregate Intrinsic Value      
Options outstanding, beginning of period $ 1,469 $ 2,974  
Granted 0 0  
Exercised 1,011 1,842 $ 1,900
Forfeited or expired 0 33  
Options outstanding, end of period $ 0 1,469 $ 2,974
Options exercisable end of fiscal year   $ 1,469  
v3.20.2
STOCK COMPENSATION - Nonvested Shares (Details) - $ / shares
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Number of Shares    
Nonvested shares outstanding, beginning of period (in shares) 926,122 1,005,813
Granted (in shares) 191,372 315,802
Vested (in shares) (316,283) (391,061)
Forfeited or expired (in shares) (11,128) (4,432)
Nonvested shares outstanding, end of period (in shares) 790,083 926,122
Weighted Average Fair Value At Grant    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 29.54 $ 29.89
Granted (in dollars per share) 32.32 25.18
Vested (in dollars per share) 29.92 26.97
Forfeited or expired (in dollars per share) 31.35 25.98
Nonvested shares outstanding, end of period (in dollars per share) $ 30.03 $ 29.54
v3.20.2
INCOME TAXES (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Federal:      
Current $ 3,148 $ 5,278 $ (4,023)
Deferred (4,505) (14,831) 5,895
Federal income tax expense (1,357) (9,553) 1,872
State:      
Current 4,860 5,649 2,611
Deferred 2,158 530 634
State tax expense 7,018 6,179 3,245
Income tax (benefit) expense 5,661 (3,374) 5,117
Deferred tax assets:      
Bad debts 13,968 6,805  
Deferred compensation 1,288 1,626  
Stock based compensation 4,073 4,296  
Valuation adjustments 5,343 6,596  
General business credits 37,888 27,935  
Accrued expenses 2,155 3,767  
Lease liability 6,798 0  
Other assets 3,215 3,144  
Gross deferred tax assets 74,728 54,169  
Deferred tax liabilities:      
Premises and equipment (2,852) (3,084)  
Intangibles (2,114) (1,812)  
Net unrealized gains on securities available for sale (5,964) (2,146)  
Deferred income 0 (179)  
Leased assets (35,279) (24,996)  
Right-of-use assets (6,550) 0  
Other liabilities (4,246) (3,068)  
Gross deferred tax liabilities (57,005) (35,285)  
Net deferred tax assets 17,723 18,884  
Effective Income Tax Rate Reconciliation, Amount [Abstract]      
Statutory federal income tax expense and rate 24,151 20,568 14,082
Change in tax rate resulting from:      
State income taxes net of federal benefits 5,444 5,000 2,461
162(m) disallowance 1,129 2,777 0
Tax exempt income (1,212) (2,714) (6,968)
Nondeductible acquisition costs 0 0 1,295
General business credits (22,284) (27,126) (3,948)
Tax reform 0 0 3,849
Amended Crestmark Bancorp historical tax return 0 0 (4,644)
Other, net (1,567) (1,879) (1,010)
Income tax (benefit) expense $ 5,661 $ (3,374) $ 5,117
Effective Income Tax Rate Reconciliation, Percent [Abstract]      
Statutory federal income tax expense and rate (percent) 21.00% 21.00% 24.50%
State income taxes net of federal benefits (percent) 4.70% 5.10% 4.30%
162 (m) disallowance (percent) 1.00% 2.80% 0.00%
Tax exempt income (percent) (1.00%) (2.80%) (12.10%)
Nondeductible acquisition costs (percent) 0.00% 0.00% 2.30%
General business credits (percent) (19.40%) (27.70%) (6.90%)
Tax reform (percent) 0.00% 0.00% 6.70%
Amended Crestmark Bancorp historical tax return (percent) 0.00% 0.00% (8.10%)
Other, net (percent) (1.40%) (1.80%) (1.70%)
Total income tax expense (percent) 4.90% (3.40%) 9.00%
Gross deferred tax on state net operating loss carryforwards $ 2,400 $ 2,000  
Operating loss carryforwards reserved 2,400 2,000  
Tax credit, investment, amount 20,500 27,100 $ 4,000
Reconciliation for liabilities [Abstract]      
Balance at beginning of fiscal year 368 434  
Additions for tax positions related to prior years 723    
Reductions for tax positions related to prior years   (66)  
Balance at end of fiscal year 1,091 $ 368 $ 434
Unrecognized tax benefits that, if recognized, would impact the effective rate 981    
Accrued interest related to unrecognized tax benefits $ 115    
v3.20.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details)
Sep. 30, 2020
Sep. 30, 2019
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 6.58% 8.33%
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, ratio 5.00% 5.00%
Common equity Tier 1 (to risk-weighted assets), actual ratio 11.78% 10.35%
Common equity Tier 1 (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 4.50% 4.50%
Common equity Tier 1 (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 6.50% 6.50%
Tier 1 (core) capital ( to risk weighted assets), ratio 0.1218 0.1071
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 0.0600 0.0600
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 0.0800 0.0800
Total qualifying capital (to risk-weighted assets), ratio 15.30% 13.01%
Total qualifying capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 8.00% 8.00%
Total qualifying capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 10.00% 10.00%
MetaBank    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 7.56% 9.65%
Common equity Tier 1 (to risk-weighted assets), actual ratio 13.96% 12.31%
Tier 1 (core) capital ( to risk weighted assets), ratio 0.1400 0.1237
Total qualifying capital (to risk-weighted assets), ratio 15.26% 13.02%
v3.20.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details)
$ in Thousands
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Sep. 30, 2018
USD ($)
Sep. 30, 2017
USD ($)
Reconciliation of capital amounts [Abstract]        
Total stockholders' equity $ 847,308 $ 843,958 $ 747,726 $ 434,496
Adjustments:        
LESS: Goodwill, net of associated deferred tax liabilities 302,396      
LESS: Certain other intangible assets 40,964      
LESS: Net deferred tax assets from operating loss and tax credit carry-forwards 18,361      
LESS: Net unrealized gains (losses) on available-for-sale securities 17,762      
LESS: Noncontrolling interest 3,603 $ 4,047    
Common Equity Tier 1 464,222      
Long-term borrowings and other instruments qualifying as Tier 1 13,661      
Tier 1 minority interest not included in common equity tier 1 capital 1,894      
Total Tier 1 capital 479,777      
Allowance for loan and lease losses 49,343      
Subordinated debentures (net of issuance costs) 73,807      
Total capital $ 602,927      
Common Equity Tier 1, risk-based (as a percent) 0.070      
Tier 1 risk-based (as a percent) 0.085      
Total risk based capital ratios with buffer (as a percent) 0.105      
v3.20.2
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Tangible Common Equity Reconciliation (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
Restructuring and Related Activities [Abstract]        
Total stockholders' equity $ 847,308 $ 843,958 $ 747,726 $ 434,496
Goodwill 309,505 309,505 $ 303,270  
Intangible assets 41,692 52,810    
Tangible common equity 496,111      
Accumulated other comprehensive income 17,542 $ 6,339    
Tangible common equity excluding AOCI $ 478,569      
v3.20.2
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
Feb. 09, 2018
Sep. 30, 2020
Sep. 30, 2019
Oct. 14, 2016
Commitments and Contingencies Disclosure [Abstract]        
Unfunded loan commitments   $ 1,220,000,000 $ 978,100,000  
Commitment to purchase securities   0 0  
Commitment to sell securities   0 0  
Off-Balance Sheet valuation allowance   $ 100,000 $ 100,000  
Card Limited, LLC v. MetaBank dba Meta Payment Systems        
Loss Contingencies [Line Items]        
Estimate of possible loss       $ 4,000,000.0
AFS/IBEX, A Division of MetaBank V. Aegis Managing Agency Limited        
Loss Contingencies [Line Items]        
Damages sought $ 1,600,000      
v3.20.2
LEASE COMMITMENTS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2019
Sep. 30, 2020
Leases [Abstract]    
Annual rent, minimum   $ 2,000
Annual rent, maximum   $ 867,000
Interest expense $ 100,000  
Depreciate expense 100,000  
Operating Leases    
2020 3,709,000  
2022 3,429,000  
2023 2,955,000  
2024 2,561,000  
2025 2,457,000  
Thereafter 18,971,000  
Total leases commitments 34,082,000  
Capital Leases    
2020 216,000  
2021 216,000  
2022 216,000  
2023 216,000  
2024 194,000  
Thereafter 1,876,000  
Total leases commitments 2,934,000  
Amounts representing interest 986,000  
Present value of net minimum lease payments $ 1,948,000  
v3.20.2
REVENUE FROM CONTRACTS WITH CUSTOMERS - Narrative (Details) - USD ($)
Sep. 30, 2020
Sep. 30, 2019
Refund transfer product fees    
Disaggregation of Revenue [Line Items]    
Accounts receivable, before allowance for credit loss $ 0 $ 0
v3.20.2
REVENUE FROM CONTRACTS WITH CUSTOMERS - Schedule of Revenue From Contracts with Customers by Segment (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Disaggregation of Revenue [Line Items]                              
Net interest income (expense) $ 64,513 $ 62,137 $ 67,737 $ 64,651 $ 65,617 $ 66,968 $ 71,350 $ 60,272 $ 48,537 $ 28,411 $ 27,405 $ 26,196 $ 259,038 $ 264,207 $ 130,549
Noninterest income $ 40,750 $ 41,048 $ 120,513 $ 37,483 $ 35,980 $ 43,790 $ 105,025 $ 37,751 $ 24,613 $ 33,225 $ 97,419 $ 29,268 239,794 222,545 184,525
Revenue                         498,832 486,752  
Refund transfer product fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         36,061 39,198  
Tax advance product fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         31,826 34,687  
Payment card and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         87,379 87,130  
Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         1,310 1,942  
Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         44,826 41,053  
Gain on sale of securities available-fore-sale, net                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         51 729  
Gain on divestitures                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         19,275    
(Loss) gain on sale of other                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         4,425 7,831  
Other income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         14,641 9,975  
Consumer                              
Disaggregation of Revenue [Line Items]                              
Net interest income (expense)                         108,085 79,010 26,111
Noninterest income                         158,311 162,212 176,257
Revenue                         266,396 241,222  
Consumer | Refund transfer product fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         36,061 39,198  
Consumer | Tax advance product fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         31,826 34,687  
Consumer | Payment card and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         87,379 87,130  
Consumer | Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         19 12  
Consumer | (Loss) gain on sale of other                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         (19) 241  
Consumer | Other income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         3,045 944  
Commercial                              
Disaggregation of Revenue [Line Items]                              
Net interest income (expense)                         150,766 152,565 34,294
Noninterest income                         60,151 54,224 11,955
Revenue                         210,917 206,789  
Commercial | Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         984 1,163  
Commercial | Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         43,493 40,533  
Commercial | (Loss) gain on sale of other                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         9,587 7,511  
Commercial | Other income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         6,087 5,017  
Corporate Services/Other                              
Disaggregation of Revenue [Line Items]                              
Net interest income (expense)                         187 32,632 70,144
Noninterest income                         21,332 6,109 $ (3,687)
Revenue                         21,519 38,741  
Corporate Services/Other | Other bank and deposit fees                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         326 779  
Corporate Services/Other | Rental income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         1,314 508  
Corporate Services/Other | Gain on sale of securities available-fore-sale, net                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         51 729  
Corporate Services/Other | Gain on divestitures                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         19,275    
Corporate Services/Other | (Loss) gain on sale of other                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         (5,143) 79  
Corporate Services/Other | Other income                              
Disaggregation of Revenue [Line Items]                              
Noninterest income                         $ 5,509 $ 4,014  
v3.20.2
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
USD ($)
Jun. 30, 2020
USD ($)
Mar. 31, 2020
USD ($)
Dec. 31, 2019
USD ($)
Sep. 30, 2019
USD ($)
Jun. 30, 2019
USD ($)
Mar. 31, 2019
USD ($)
Dec. 31, 2018
USD ($)
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2020
USD ($)
segment
Sep. 30, 2019
USD ($)
segment
Sep. 30, 2018
USD ($)
Segment Reporting [Abstract]                              
Number of reportable segments | segment                         3 3  
Segment data [Abstract]                              
Net interest income (expense) $ 64,513 $ 62,137 $ 67,737 $ 64,651 $ 65,617 $ 66,968 $ 71,350 $ 60,272 $ 48,537 $ 28,411 $ 27,405 $ 26,196 $ 259,038 $ 264,207 $ 130,549
Provision for loan and lease losses 8,980 15,093 37,296 3,407 4,121 9,112 33,318 9,099 4,706 5,315 18,343 1,068 64,776 55,650 29,432
Noninterest income (expense) 40,750 $ 41,048 $ 120,513 $ 37,483 35,980 $ 43,790 $ 105,025 $ 37,751 24,613 $ 33,225 $ 97,419 $ 29,268 239,794 222,545 184,525
Noninterest expense                         319,051 333,160 228,232
Income (loss) before income tax expense (benefit)                         115,005 97,942 57,410
Total assets 6,092,074       6,182,890       5,835,067       6,092,074 6,182,890 5,835,067
Goodwill 309,505       309,505       303,270       309,505 309,505 303,270
Total deposits 4,979,200       4,337,005       4,430,987       4,979,200 4,337,005 4,430,987
Consumer                              
Segment data [Abstract]                              
Net interest income (expense)                         108,085 79,010 26,111
Provision for loan and lease losses                         21,838 25,336 22,202
Noninterest income (expense)                         158,311 162,212 176,257
Noninterest expense                         76,651 77,153 97,288
Income (loss) before income tax expense (benefit)                         167,907 138,733 82,878
Total assets 588,216       700,365       344,919       588,216 700,365 344,919
Goodwill 87,145       87,145       87,145       87,145 87,145 87,145
Total deposits 4,555,999       2,444,452       2,419,773       4,555,999 2,444,452 2,419,773
Commercial                              
Segment data [Abstract]                              
Net interest income (expense)                         150,766 152,565 34,294
Provision for loan and lease losses                         29,296 21,901 1,968
Noninterest income (expense)                         60,151 54,224 11,955
Noninterest expense                         107,802 127,033 36,422
Income (loss) before income tax expense (benefit)                         73,819 57,855 7,859
Total assets 2,836,149       2,432,381       1,942,283       2,836,149 2,432,381 1,942,283
Goodwill 222,360       222,360       216,125       222,360 222,360 216,125
Total deposits 6,226       5,588       4,939       6,226 5,588 4,939
Corporate Services/Other                              
Segment data [Abstract]                              
Net interest income (expense)                         187 32,632 70,144
Provision for loan and lease losses                         13,642 8,413 5,262
Noninterest income (expense)                         21,332 6,109 (3,687)
Noninterest expense                         134,598 128,974 94,522
Income (loss) before income tax expense (benefit)                         (126,721) (98,646) (33,327)
Total assets 2,667,709       3,050,144       3,547,865       2,667,709 3,050,144 3,547,865
Goodwill 0       0       0       0 0 0
Total deposits $ 416,975       $ 1,886,965       $ 2,006,275       $ 416,975 $ 1,886,965 $ 2,006,275
v3.20.2
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Sep. 30, 2017
ASSETS                                
Cash and cash equivalents $ 427,367       $ 126,545               $ 427,367 $ 126,545    
Investment securities held to maturity, at cost 87,183       127,582               87,183 127,582    
Other assets 82,983       54,832               82,983 54,832    
Total assets 6,092,074       6,182,890       $ 5,835,067       6,092,074 6,182,890 $ 5,835,067  
LIABILITIES                                
Long-term borrowings 98,224       215,838               98,224 215,838    
Other liabilities 165,419       130,656               165,419 130,656    
Total liabilities 5,244,766       5,338,932               5,244,766 5,338,932    
STOCKHOLDERS' EQUITY                                
Common stock 344       378               344 378    
Additional paid-in capital 594,569       580,826               594,569 580,826    
Retained earnings 234,927       252,813               234,927 252,813    
Treasury stock, at cost 17,542       6,339               17,542 6,339    
Treasury stock, at cost (3,677)       (445)               (3,677) (445)    
Total equity attributable to parent 843,705       839,911               843,705 839,911    
Noncontrolling interest 3,603       4,047               3,603 4,047    
Total stockholders' equity 847,308       843,958       747,726       847,308 843,958 747,726 $ 434,496
Total liabilities and stockholders’ equity 6,092,074       6,182,890               6,092,074 6,182,890    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                
Interest expense 3,894 $ 5,269 $ 11,666 $ 12,974 15,211 $ 14,664 $ 16,944 $ 14,704 11,665 $ 5,693 $ 5,966 $ 4,661 33,803 61,522 27,985  
Other expense                         319,051 333,160 228,232  
Income tax (benefit) expense                         5,661 (3,374) 5,117  
Net income before noncontrolling interest                         109,344 101,316 52,293  
Net income attributable to parent 13,158 18,190 52,304 21,068 20,195 29,291 32,120 15,398 8,722 6,792 31,436 4,670 104,720 97,004 51,620  
Cash flows from operating activities:                                
Net income attributable to parent 13,158 $ 18,190 $ 52,304 21,068 20,195 $ 29,291 $ 32,120 15,398 8,722 $ 6,792 $ 31,436 4,670 104,720 97,004 51,620  
Adjustments to reconcile net income to net cash provided by operating activities:                                
Depreciation, amortization and accretion, net                         60,745 55,149 37,722  
Stock compensation                         10,221 12,942 11,123  
Other assets                         1,524 (5,427) 2,633  
Accrued expenses and other liabilities                         8,643 16,623 (28,610)  
Net cash provided by operating activities                         467,220 191,012 137,755  
Cash flows from investing activities:                                
Held to Maturity: Proceeds from maturities and principal repayments                         237,254 164,044 162,118  
Net cash (used in) investing activities                         (206,316) (339,198) (389,790)  
Cash flows from financing activities:                                
Cash dividends paid                         (7,100) (7,760) (5,736)  
Short-term borrowings                         0 0 (11,642)  
Long-term borrowings                         0 0 (258)  
Exercise of stock options & issuance of common stock                         266 44 148  
Issuance of restricted stock                         2 3 4  
Shares repurchased for tax withholdings on stock compensation                         (118,738) (49,912) (2,598)  
Net cash provided by (used in) financing activities                         40,019 174,876 (915,577)  
Net change in cash and cash equivalents                         300,822 26,568 (1,167,609)  
CASH AND CASH EQUIVALENTS                                
Cash and cash equivalents at beginning of fiscal year       126,545       99,977       1,267,586 126,545 99,977 1,267,586  
Cash and cash equivalents at end of fiscal year 427,367       126,545       99,977       427,367 126,545 99,977  
Meta Financial                                
ASSETS                                
Cash and cash equivalents 4,783       8,111               4,783 8,111    
Investment securities held to maturity, at cost 1,208       411               1,208 411    
Investment in subsidiaries 933,431       933,196               933,431 933,196    
Other assets 3,308       159               3,308 159    
Total assets 942,730       941,877               942,730 941,877    
LIABILITIES                                
Long-term borrowings 87,468       87,305               87,468 87,305    
Other liabilities 7,954       10,614               7,954 10,614    
Total liabilities 95,422       97,919               95,422 97,919    
STOCKHOLDERS' EQUITY                                
Common stock 344       378               344 378    
Additional paid-in capital 594,569       580,826               594,569 580,826    
Retained earnings 234,927       252,813               234,927 252,813    
Treasury stock, at cost 17,542       6,339               17,542 6,339    
Treasury stock, at cost (3,677)       (445)               (3,677) (445)    
Total equity attributable to parent 843,705       839,911               843,705 839,911    
Noncontrolling interest 3,603       4,047               3,603 4,047    
Total stockholders' equity 847,308       843,958               847,308 843,958    
Total liabilities and stockholders’ equity 942,730       941,877               942,730 941,877    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                
Interest expense                         5,168 5,296 5,061  
Other expense                         1,256 1,044 663  
Total expense                         6,424 6,340 5,724  
Loss before income taxes and equity in undistributed net income of subsidiaries                         (6,424) (6,340) (5,724)  
Income tax (benefit) expense                         (3,638) (1,374) (1,504)  
Loss before equity in undistributed net income of subsidiaries                         (2,786) (4,966) (4,220)  
Equity in undistributed net income of subsidiaries                         107,476 101,970 55,840  
Other income                         30 0 0  
Net income before noncontrolling interest                         107,506 101,970 55,840  
Net income attributable to parent                         104,720 97,004 51,620  
Cash flows from operating activities:                                
Net income attributable to parent                         104,720 97,004 51,620  
Adjustments to reconcile net income to net cash provided by operating activities:                                
Depreciation, amortization and accretion, net                         163 153 143  
Equity in undistributed net income of subsidiaries                         (107,476) (101,970) (55,840)  
Stock compensation                         10,221 12,942 11,123  
Other assets                         (3,149) (35) 232  
Accrued expenses and other liabilities                         (2,660) (6,468) (860)  
Cash dividend received                         118,000 33,980 45,315  
Net cash provided by operating activities                         119,819 35,606 51,733  
Cash flows from investing activities:                                
Held to Maturity: Proceeds from maturities and principal repayments                         0 0 8  
Capital contributions to subsidiaries                         0 0 (20,322)  
Alternative Investments                         (797) 0 0  
Net cash (used in) investing activities                         (797) 0 (20,314)  
Cash flows from financing activities:                                
Cash dividends paid                         (7,100) (7,760) (5,736)  
Short-term borrowings                         0 0 (11,642)  
Long-term borrowings                         0 0 (258)  
Purchase of shares by ESOP                         3,220 2,011 1,606  
Exercise of stock options & issuance of common stock                         266 44 148  
Issuance of restricted stock                         2 3 4  
Issuance of commons shares due to acquisitions                         0 0 295,767  
Cash acquired due to acquisitions                         0 0 697  
Net increase in investment in subsidiaries                         0 (90) (295,767)  
Shares repurchased for tax withholdings on stock compensation                         (118,738) (49,912) (2,598)  
Net cash provided by (used in) financing activities                         (122,350) (55,704) (17,779)  
Net change in cash and cash equivalents                         (3,328) (20,098) 13,640  
CASH AND CASH EQUIVALENTS                                
Cash and cash equivalents at beginning of fiscal year       $ 8,111       $ 28,209       $ 14,569 8,111 28,209 14,569  
Cash and cash equivalents at end of fiscal year $ 4,783       $ 8,111       $ 28,209       $ 4,783 $ 8,111 $ 28,209  
v3.20.2
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2020
Jun. 30, 2020
Mar. 31, 2020
Dec. 31, 2019
Sep. 30, 2019
Jun. 30, 2019
Mar. 31, 2019
Dec. 31, 2018
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2020
Sep. 30, 2019
Sep. 30, 2018
Quarterly Financial Information Disclosure [Abstract]                              
Interest and dividend income $ 68,407 $ 67,406 $ 79,403 $ 77,625 $ 80,828 $ 81,632 $ 88,294 $ 74,976 $ 60,202 $ 34,104 $ 33,371 $ 30,857 $ 292,841 $ 325,729 $ 158,534
Interest expense 3,894 5,269 11,666 12,974 15,211 14,664 16,944 14,704 11,665 5,693 5,966 4,661 33,803 61,522 27,985
Net interest income (expense) 64,513 62,137 67,737 64,651 65,617 66,968 71,350 60,272 48,537 28,411 27,405 26,196 259,038 264,207 130,549
Provision for loan and lease losses 8,980 15,093 37,296 3,407 4,121 9,112 33,318 9,099 4,706 5,315 18,343 1,068 64,776 55,650 29,432
Noninterest income (expense) 40,750 41,048 120,513 37,483 35,980 43,790 105,025 37,751 24,613 33,225 97,419 29,268 239,794 222,545 184,525
Net income attributable to parent $ 13,158 $ 18,190 $ 52,304 $ 21,068 $ 20,195 $ 29,291 $ 32,120 $ 15,398 $ 8,722 $ 6,792 $ 31,436 $ 4,670 $ 104,720 $ 97,004 $ 51,620
Earnings per common share                              
Basic (in dollars per share) $ 0.38 $ 0.53 $ 1.45 $ 0.56 $ 0.53 $ 0.75 $ 0.81 $ 0.39 $ 0.24 $ 0.22 $ 1.07 $ 0.15 $ 2.94 $ 2.49 $ 1.68
Diluted (in dollars per share) 0.38 0.53 1.45 0.56 0.53 0.75 0.81 0.39 0.24 0.22 1.06 0.15 $ 2.94 $ 2.49 $ 1.67
Dividend declared per share (in dollars per share) $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.05 $ 0.04 $ 0.04 $ 0.04      
v3.20.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
Sep. 30, 2020
Sep. 30, 2019
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]    
Transfers between levels of fair value hierarchy $ 0 $ 0
Available For Sale    
Mortgage-backed securities available for sale, at fair value 453,607,000 382,546,000
Total debt securities AFS 1,268,102,000 1,272,493,000
Held To Maturity    
Total securities HTM, at cost 93,745,000 133,470,000
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets, net 9,957,000 29,494,000
Level 1    
Available For Sale    
Total debt securities AFS 0 0
Non-marketable equity securities 0 0
Held To Maturity    
Total securities HTM, at cost 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2    
Available For Sale    
Total debt securities AFS 1,268,102,000 1,272,493,000
Non-marketable equity securities 12,000,000 6,500,000
Held To Maturity    
Total securities HTM, at cost 93,745,000 133,470,000
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 3    
Available For Sale    
Total debt securities AFS 0 0
Non-marketable equity securities 0 0
Held To Maturity    
Total securities HTM, at cost 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 3,307,037,000 3,622,597,000
Nonrecurring    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 19,217,000 38,201,000
Nonrecurring | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 9,260,000 8,707,000
Nonrecurring | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets, net 9,957,000 29,494,000
Nonrecurring | National Lending | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 9,240,000 8,707,000
Nonrecurring | National Lending | Commercial Operating | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 9,240,000 8,707,000
Nonrecurring | Community Banking | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 20,000  
Nonrecurring | Community Banking | Commercial and Multi-Family Real Estate | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 20,000  
Nonrecurring | Level 1    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 1 | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 1 | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets, net 0 0
Nonrecurring | Level 1 | National Lending | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 1 | National Lending | Commercial Operating | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 1 | Community Banking | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Nonrecurring | Level 1 | Community Banking | Commercial and Multi-Family Real Estate | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Nonrecurring | Level 2    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 2 | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 2 | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets, net 0 0
Nonrecurring | Level 2 | National Lending | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 2 | National Lending | Commercial Operating | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Nonrecurring | Level 2 | Community Banking | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Nonrecurring | Level 2 | Community Banking | Commercial and Multi-Family Real Estate | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Nonrecurring | Level 3    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 19,217,000 38,201,000
Nonrecurring | Level 3 | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 9,260,000 8,707,000
Nonrecurring | Level 3 | Foreclosed Assets    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets, net 9,957,000 29,494,000
Nonrecurring | Level 3 | National Lending | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 9,240,000 8,707,000
Nonrecurring | Level 3 | National Lending | Commercial Operating | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 9,240,000 8,707,000
Nonrecurring | Level 3 | Community Banking | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 20,000  
Nonrecurring | Level 3 | Community Banking | Commercial and Multi-Family Real Estate | Impaired Loans    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 20,000  
Recurring    
Available For Sale    
SBA securities 164,955,000 185,982,000
Obligations of states and political subdivisions 841,000 874,000
Non-bank qualified obligations of states and political subdivisions 323,774,000 400,557,000
Asset-backed securities 324,925,000 302,534,000
Mortgage-backed securities available for sale, at fair value 453,607,000 382,546,000
Total debt securities AFS 1,268,102,000 1,272,493,000
Common equities and mutual funds 2,969,000 2,606,000
Non-marketable equity securities 2,784,000 1,669,000
Recurring | Level 1    
Available For Sale    
SBA securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-backed securities available for sale, at fair value 0 0
Total debt securities AFS 0 0
Common equities and mutual funds 2,969,000 2,606,000
Non-marketable equity securities 0 0
Recurring | Level 2    
Available For Sale    
SBA securities 164,955,000 185,982,000
Obligations of states and political subdivisions 841,000 874,000
Non-bank qualified obligations of states and political subdivisions 323,774,000 400,557,000
Asset-backed securities 324,925,000 302,534,000
Mortgage-backed securities available for sale, at fair value 453,607,000 382,546,000
Total debt securities AFS 1,268,102,000 1,272,493,000
Common equities and mutual funds 0 0
Non-marketable equity securities 0 0
Recurring | Level 3    
Available For Sale    
SBA securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset-backed securities 0 0
Mortgage-backed securities available for sale, at fair value 0 0
Total debt securities AFS 0 0
Common equities and mutual funds 0 0
Non-marketable equity securities $ 0 $ 0
v3.20.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details)
$ in Thousands
 12 Months Ended
Sep. 30, 2020
USD ($)
Sep. 30, 2019
USD ($)
Minimum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 4.00%  
Maximum    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 30.00%  
Level 3    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Impaired Loans, Net $ 3,307,037 $ 3,622,597
Impaired Loans | Level 3 | Valuation, Market Approach    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Impaired Loans, Net $ 9,260 8,707
Impaired Loans | Level 3 | Valuation, Market Approach | Minimum | Appraised Value    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 0.04  
Impaired Loans | Level 3 | Valuation, Market Approach | Maximum | Appraised Value    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 0.10  
Foreclosed Assets | Level 3 | Valuation, Market Approach    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Impaired Loans, Net $ 9,957 $ 29,494
Foreclosed Assets | Level 3 | Valuation, Market Approach | Minimum | Appraised Value    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 0.04  
Foreclosed Assets | Level 3 | Valuation, Market Approach | Maximum | Appraised Value    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 0.30  
v3.20.2
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Sep. 30, 2020
Sep. 30, 2019
Financial assets    
Debt securities available for sale $ 1,268,102 $ 1,272,493
Debt securities held to maturity 93,745 133,470
Level 1    
Financial assets    
Cash and cash equivalents 427,367 126,545
Debt securities available for sale 0 0
Debt securities held to maturity 0 0
Investment securities available for sale, at fair value 2,969 2,606
Non-marketable equity securities 0 0
Loans held for sale 0 0
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Federal Reserve Bank and Federal Home Loan Bank stocks 0 0
Accrued interest receivable 16,628 20,400
Financial liabilities    
Deposits 4,705,028 2,920,516
Overnight federal funds purchased 0 642,000
Federal Home Loan Bank advances 0 0
Other short- and long-term borrowings 0 0
Accrued interest payable 1,923 9,414
Level 2    
Financial assets    
Cash and cash equivalents 0 0
Debt securities available for sale 1,268,102 1,272,493
Debt securities held to maturity 93,745 133,470
Investment securities available for sale, at fair value 0 0
Non-marketable equity securities 12,000 6,500
Loans held for sale 183,577 148,777
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Federal Reserve Bank and Federal Home Loan Bank stocks 27,138 30,916
Accrued interest receivable 0 0
Financial liabilities    
Deposits 275,045 1,417,994
Overnight federal funds purchased 0 0
Federal Home Loan Bank advances 0 110,691
Other short- and long-term borrowings 100,185 113,876
Accrued interest payable 0 0
Level 3    
Financial assets    
Cash and cash equivalents 0 0
Debt securities available for sale 0 0
Debt securities held to maturity 0 0
Investment securities available for sale, at fair value 0 0
Non-marketable equity securities 0 0
Loans held for sale 0 0
Loans receivable: [Abstract]    
Impaired Loans, Net 3,307,037 3,622,597
Federal Reserve Bank and Federal Home Loan Bank stocks 0 0
Accrued interest receivable 0 0
Financial liabilities    
Deposits 0 0
Overnight federal funds purchased 0 0
Federal Home Loan Bank advances 0 0
Other short- and long-term borrowings 0 0
Accrued interest payable 0 0
Carrying Amount    
Financial assets    
Cash and cash equivalents 427,367 126,545
Debt securities available for sale 1,268,102 1,272,493
Debt securities held to maturity 92,610 134,764
Investment securities available for sale, at fair value 2,969 2,606
Non-marketable equity securities 14,784 8,169
Loans held for sale 183,577 148,777
Loans receivable: [Abstract]    
Impaired Loans, Net 3,314,140 3,651,413
Federal Reserve Bank and Federal Home Loan Bank stocks 27,138 30,916
Accrued interest receivable 16,628 20,400
Financial liabilities    
Deposits 4,979,200 4,337,005
Overnight federal funds purchased 0 642,000
Federal Home Loan Bank advances 0 110,000
Other short- and long-term borrowings 98,224 109,857
Accrued interest payable 1,923 9,414
Estimated Fair Value    
Financial assets    
Cash and cash equivalents 427,367 126,545
Debt securities available for sale 1,268,102 1,272,493
Debt securities held to maturity 93,745 133,470
Investment securities available for sale, at fair value 2,969 2,606
Non-marketable equity securities 14,784 8,169
Loans held for sale 183,577 148,777
Loans receivable: [Abstract]    
Impaired Loans, Net 3,307,037 3,622,597
Federal Reserve Bank and Federal Home Loan Bank stocks 27,138 30,916
Accrued interest receivable 16,628 20,400
Financial liabilities    
Deposits 4,980,073 4,338,510
Overnight federal funds purchased 0 642,000
Federal Home Loan Bank advances 0 110,691
Other short- and long-term borrowings 100,185 113,876
Accrued interest payable $ 1,923 $ 9,414
v3.20.2
SUBSEQUENT EVENTS (Details) - Community Bank - USD ($)
$ in Millions
Nov. 18, 2020
Sep. 17, 2020
Aug. 04, 2020
Subsequent Event [Line Items]      
Additional amount of portfolio sold   $ 76.4 $ 58.6
Subsequent Event      
Subsequent Event [Line Items]      
Additional amount of portfolio sold $ 129.8