META FINANCIAL GROUP INC, 10-K filed on 11/29/2018
Annual Report
v3.10.0.1
Document and Entity Information - USD ($)
$ in Millions
 12 Months Ended
Sep. 30, 2018
Nov. 26, 2018
Mar. 31, 2018
Document and Entity Information [Abstract]      
Entity Registrant Name META FINANCIAL GROUP INC    
Entity Central Index Key 0000907471    
Current Fiscal Year End Date --09-30    
Entity Well-known Seasoned Issuer No    
Entity Voluntary Filers No    
Entity Current Reporting Status Yes    
Entity Filer Category Large Accelerated Filer    
Entity Public Float     $ 979.7
Entity Common Stock, Shares Outstanding   39,406,938  
Document Fiscal Year Focus 2018    
Document Fiscal Period Focus FY    
Document Type 10-K    
Amendment Flag false    
Document Period End Date Sep. 30, 2018    
Entity Small Business false    
Entity Emerging Growth Company false    
Entity Shell Company false    
v3.10.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
ASSETS    
Cash and cash equivalents $ 99,977 $ 1,267,586
Investment securities available-for-sale 1,487,960 1,106,977
Mortgage-backed securities available-for-sale 364,065 586,454
Investment securities held to maturity 164,304 449,840
Mortgage-backed securities held to maturity 7,850 113,689
Loans held for sale 15,606 0
Loans and leases receivable 2,944,739 1,325,371
Allowance for loan and lease losses (13,040) (7,534)
Federal Home Loan Bank stock, at cost 23,400 61,123
Accrued interest receivable 22,016 19,380
Premises, furniture, and equipment, net 40,458 19,320
Rental equipment 107,290 0
Bank-owned life insurance 87,293 84,702
Foreclosed real estate and repossessed assets 31,638 292
Goodwill 303,270 98,723
Intangible assets 70,719 52,178
Prepaid assets 27,906 28,392
Deferred taxes 18,737 9,101
Other assets 30,879 12,738
Total assets 5,835,067 5,228,332
LIABILITIES    
Non-interest-bearing checking 2,405,274 2,454,057
Interest-bearing checking 111,587 67,294
Savings deposits 54,765 53,505
Money market deposits 51,995 48,758
Time certificates of deposit 276,180 123,637
Wholesale deposits 1,531,186 476,173
Total deposits 4,430,987 3,223,424
Short-term debt 425,759 1,404,534
Long-term debt 88,963 85,533
Accrued interest payable 7,794 2,280
Accrued expenses and other liabilities 133,838 78,065
Total liabilities 5,087,341 4,793,836
STOCKHOLDERS’ EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at September 30, 2018 and 2017, respectively 0 0
Common stock [1] 393 288
Additional paid-in capital 565,811 258,144
Retained earnings 213,048 167,164
Accumulated other comprehensive (loss) income (33,111) 9,166
Treasury stock, at cost, 24,783 and 3,836 common shares at September 30, 2018 and 2017, respectively (1,989) (266)
Total equity attributable to parent 744,152 434,496
Non-controlling interest 3,574 0
Total stockholders' equity 747,726 434,496
Total liabilities and stockholders’ equity 5,835,067 5,228,332
Nonvoting Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock $ 0 $ 0
[1] All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.
v3.10.0.1
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - $ / shares
Sep. 30, 2018
Sep. 30, 2017
STOCKHOLDERS’ EQUITY    
Preferred stock, shares authorized (in shares) 3,000,000 3,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 90,000,000 45,000,000
Common stock, shares issued (in shares) 39,192,063 28,871,621
Common stock, shares outstanding (in shares) 39,167,280 28,867,785
Treasury stock (in shares) 24,783 3,836
Nonvoting Common Stock [Member]    
STOCKHOLDERS’ EQUITY    
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 3,000,000 3,000,000
Common stock, shares issued (in shares) 0 0
Common stock, shares outstanding (in shares) 0 0
v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Interest and dividend income:      
Loans and leases, including fees $ 98,475 $ 52,117 $ 36,187
Mortgage-backed securities 15,479 16,571 15,771
Other investments 44,580 39,415 29,438
Total interest and dividend income 158,534 108,103 81,396
Interest expense:      
Deposits 15,163 6,051 614
FHLB advances and other borrowings 12,822 8,822 3,477
Total interest expense 27,985 14,873 4,091
Net interest income 130,549 93,230 77,305
Provision for loan and lease losses 29,432 10,589 4,605
Net interest income after provision for loan and lease losses 101,117 82,641 72,700
Non-interest income:      
Loss on sale of securities, net (Includes ($8,177), ($493), and ($326) reclassified from accumulated other comprehensive income (loss) for net losses on available for sale securities for the fiscal years ended September 30, 2018, 2017 and 2016, respectively) (8,177) (493) (326)
Gain on sale of loans and leases 355 0 0
Loss on foreclosed real estate (19) (6) 0
Other income 1,494 261 8
Total non-interest income 184,525 172,172 100,770
Non-interest expense:      
Compensation and benefits 109,044 88,728 61,675
Refund transfer product expense 11,750 11,885 8,648
Tax advance product expense 1,817 3,241 0
Card processing expense 26,283 24,130 22,263
Occupancy and equipment expense 19,740 16,465 13,999
Operating lease equipment depreciation expense 5,386 0 0
Legal and consulting expense 15,064 8,384 4,824
Marketing 1,226 1,449 1,334
Data processing expense 2,674 2,117 1,972
Amortization expense 9,641 12,362 4,828
Intangible impairment 18 10,248 0
Other expense 25,589 20,654 15,105
Total non-interest expense 228,232 199,663 134,648
Income before income tax expense 57,410 55,150 38,822
Income tax expense (Includes ($2,330), ($185), and ($118) income tax benefit reclassified from accumulated other comprehensive income (loss) for the fiscal years ended September 30, 2018, 2017 and 2016, respectively) (5,117) (10,233) (5,602)
Net income before non-controlling interest 52,293 44,917 33,220
Net income attributable to non-controlling interest 673 0 0
Net Income attributable to parent $ 51,620 $ 44,917 $ 33,220
Earnings per common share:      
Basic (in dollars per share) [1] $ 1.68 $ 1.62 $ 1.31
Diluted (in dollars per share) [1] $ 1.67 $ 1.61 $ 1.30
Refund transfer product fees      
Non-interest income:      
Non-interest income: $ 41,879 $ 38,956 $ 23,347
Tax advance product fees      
Non-interest income:      
Non-interest income: 35,703 31,913 1,575
Card fees      
Non-interest income:      
Non-interest income: 94,446 94,707 70,533
Rental income      
Non-interest income:      
Non-interest income: 7,333 0 0
Loan and lease fees      
Non-interest income:      
Non-interest income: 4,470 3,882 3,374
Bank-owned life insurance income      
Non-interest income:      
Non-interest income: 2,590 2,216 1,656
Deposit fees      
Non-interest income:      
Non-interest income: $ 4,451 $ 736 $ 603
[1] All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.
v3.10.0.1
CONSOLIDATED STATEMENTS OF OPERATIONS (Parenthetical) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Non-interest income:      
Net gain (loss) on available for sale securities reclassified from accumulated other comprehensive income (loss) $ (8,177) $ (493) $ (326)
Income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) $ (2,330) $ (185) $ (118)
v3.10.0.1
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Statement of Comprehensive Income [Abstract]      
Net income before noncontrolling interest $ 52,293 $ 44,917 $ 33,220
Other comprehensive income:      
Change in net unrealized (loss) gain on securities (66,053) (21,661) 31,965
Losses realized in net income 8,177 493 326
Total available for sale adjustment (57,876) (21,168) 32,291
Deferred income tax effect (15,596) (7,414) 11,826
Unrealized gains on currency translation 3 0 0
Total other comprehensive loss income (42,277) (13,754) 20,465
Total comprehensive income 10,016 31,163 53,685
Total comprehensive income attributable to non-controlling interest 673 0 0
Total comprehensive income $ 9,343 $ 31,163 $ 53,685
v3.10.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($)
$ in Thousands
Total
Total Meta Stockholders' Equity [Member]
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss), Net of Tax [Member]
Treasury Stock [Member]
Non-controlling Interest [Member]
Balance at the beginning of the period at Sep. 30, 2015 $ 271,335 $ 271,335 $ 245 $ 170,586 $ 98,359 $ 2,455 $ (310) $ 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Cash dividends declared on common stock (4,389) (4,389)     (4,389)      
Issuance of common shares due to exercise of stock options 2,357 2,357 2 2,045     310  
Issuance of common shares due to acquisition 11,501 11,501 8 11,493     0  
Stock compensation 486 486   486        
Net change in unrealized losses on securities, net of income taxes 20,465 20,465       20,465    
Net income before noncontrolling interest 33,220 33,220     33,220      
Balance at the end of the period at Sep. 30, 2016 334,975 334,975 255 184,610 127,190 22,920 0 0
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Adoption of Accounting Standards Update 2016-09       104 (104)      
Cash dividends declared on common stock (4,839) (4,839)     (4,839)      
Issuance of common shares due to exercise of stock options 650 650 0 650     0  
Issuance of common shares due to restricted stock 12 12 12 0     0  
Contingent consideration equity earnout due to acquisition 24,142 24,142   24,142        
Issuance of common shares due to ESOP 1,174 1,174   1,174        
Issuance of common shares due to acquisition 37,296 37,296 21 37,275        
Shares repurchased for tax withholdings on stock compensation (470) (470)   (204)     (266)  
Stock compensation 10,393 10,393   10,393        
Net change in unrealized losses on securities, net of income taxes (13,754) (13,754)       (13,754)    
Net income before noncontrolling interest 44,917 44,917     44,917      
Balance at the end 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 for tax withholdings on stock compensation (2,598) (2,598)   (875)     (1,723)  
Stock compensation 11,123 11,123   11,123        
Net change in unrealized losses on securities, net of income taxes (42,277) (42,277)       (42,277)    
Net income before noncontrolling interest 52,293 51,620     51,620     673
Non-controlling interest due to acquisition 3,167             3,167
Distributions to non-controlling interest (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
v3.10.0.1
CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Increase (Decrease) in Stockholders' Equity [Roll Forward]      
Cash dividends declared on common stock (in dollars per share) $ 0.18 $ 0.17 $ 0.17
v3.10.0.1
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Cash flows from operating activities:      
Net income before noncontrolling interest $ 52,293 $ 44,917 $ 33,220
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation, amortization and accretion, net 37,722 45,048 35,617
Stock compensation 11,123 10,393 486
Provision (recovery):      
Loan and lease losses 29,432 10,589 4,605
Deferred taxes 6,530 (6,286) (230)
Loans held for sale:      
Originations (1,691) (685,934) 0
Proceeds from sales 17,621 685,934 0
Net change 952 0 0
Fair value adjustment of foreclosed real estate 29 18 0
Net realized (gain) loss:      
Other assets 127 406 104
Foreclosed real estate or other assets 19 6 0
Available for sale securities, net 8,177 537 326
Held to maturity securities, net 0 (44) 0
Loans held for sale (181) 0 0
Lease receivables and equipment (526) 0 0
Net change:      
Other assets 2,633 (23,408) (1,968)
Accrued interest payable 1,933 1,405 603
Accrued expenses and other liabilities (28,610) 30,806 11,237
Accrued interest receivable 2,745 (2,181) (3,847)
Change in bank-owned life insurance value (2,591) (2,216) (1,656)
Impairment of intangibles 18 10,248 0
Excess contingent consideration paid 0 (248) 0
Net cash provided by operating activities 137,755 119,990 78,497
Available for Sale securities:      
Purchases (626,575) (848,613) (603,995)
Proceeds from sales 596,758 457,306 285,508
Proceeds from maturities and principal repayments 162,118 126,420 116,333
Held to Maturity:      
Purchases 0 (932) (298,869)
Proceeds from sales 0 5,870 0
Proceeds from maturities and principal repayments 40,525 45,615 20,465
Bank Owned Life Insurance:      
Purchases 0 (25,000) (10,000)
Loans and leases:      
Purchases (165,670) (141,403) 0
Proceeds from sales 22,611 4,720 89
Net change (493,381) (274,840) (217,985)
Proceeds from sales of foreclosed real estate or other assets 244 200 0
Federal Home Loan Bank stock:      
Purchases (961,124) (715,891) (860,902)
Redemption 998,880 702,280 837,800
Rental Equipment:      
Purchases (1,848) 0 0
Proceeds from sales 2,362 0 0
Premises and equipment:      
Purchases (8,542) (6,798) (6,979)
Proceeds from sales 0 58 55
Rental equipment operating lease originations (15,000) 0 0
Cash paid for acquisitions (6) (29,425) 0
Cash received upon acquisitions 58,858 0 0
Net cash used in investing activities (389,790) (700,433) (738,480)
Cash flows from financing activities:      
Checking, savings, and money market deposits 7 319,524 737,727
Time deposits (143,096) (2,355) 34,821
Wholesale deposits 229,982 476,173 0
FHLB and other borrowings (415,000) 308,000 100,000
Federal funds (565,000) (5,000) 452,000
Securities sold under agreements to repurchase 1,222 (565) (969)
Short-term borrowings (11,642) 0 0
Distributions to non-controlling interest (266) 0 0
Principal payments: Other liabilities (4,888) 0 0
Principal payments: Capital lease obligations (62) (80) (126)
Cash dividends paid (5,736) (4,839) (4,389)
Purchase of shares by ESOP 1,606 1,174 0
Issuance of restricted stock 4 12 0
Proceeds from exercise of stock options & issuance of common stock 148 650 13,858
Shares repurchased for tax withholdings on stock compensation (2,598) (470) 0
Contingent consideration - cash paid 0 (17,253) 0
Proceeds from long term debt 0 0 75,000
Redemption of long term debt (258) 0 0
Payment of debt issuance costs 0 0 (1,767)
Payment of debt extinguishment costs 0 (772) 0
Net cash (used in) provided by financing activities (915,577) 1,074,199 1,406,155
Effect of exchange rate changes on cash 3 0 0
Net change in cash and cash equivalents (1,167,609) 493,756 746,172
Cash and cash equivalents at beginning of year 1,267,586 773,830 27,658
Cash and cash equivalents at end of year 99,977 1,267,586 773,830
Supplemental disclosure of cash flow information      
Interest 33,499 16,278 3,488
Income taxes 8,946 20,058 5,898
Franchise taxes 160 187 98
Other taxes 206 290 79
Transfers      
Loans and leases to foreclosed real estate or other assets 30,451 440 76
Loans and leases to rental equipment 9 0 0
Rental equipment to loans and leases 993 0 0
Loans and leases to held for sale 15,068 0 0
Contingent consideration - equity 0 24,142 0
Stock issued for acquisitions 295,767 37,296 0
Purchase/Sales of investment securities accrued, not settled Available for sale purchases 1,430 0 0
Securities transferred from held-to-maturity to available-for-sale $ 346,771 $ 0 $ 0
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 12 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
 
PRINCIPLES OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in 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.  The Trust is not included in the Consolidated Financial Statements of the Company. Through the Crestmark Acquisition, the Company acquired floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. See Note 2. Acquisitions for additional disclosure on the Crestmark Acquisition. 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. If an entity is not a VIE, the Company also evaluates arrangements in which there is a general partner or managing member to determine whether consolidation is appropriate.

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.

The 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"). See Note 2. Acquisitions for additional disclosure on the Crestmark Acquisition. 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, 2018 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.

The summarized financial information for the Company’s consolidated VIEs consisted of the following:
 
September 30, 2018
 
(Dollars in Thousands)
Cash and cash equivalents
$
867

Loans and leases receivable
131,197

Allowance for loan and lease losses
(145
)
Accrued interest receivable
887

Rental equipment
99

Foreclosed real estate and repossessed assets
1,626

Other assets
3,247

Total assets
137,778

Accrued expenses and other liabilities
2,386

Non-controlling interest
3,574

Net assets less non-controlling interest
131,818



Amounts for non-controlling 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 was organized to engage in the business of providing equipment financing term loans.

•
CM Help, LLC - CM Help was organized to provide 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 was organized to engage in the business of acquiring fleet leases and semi-trailer/tractor loans and leases.

•
CM Sterling, LLC - CM Sterling was organized to engage in asset-based lending and factoring.

•
CM TFS, LLC - CM TFS was organized to engage in the business of acquiring equipment financing term loans and leases.

NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
The primary source 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 and community banking loans.  The Company accepts deposits from customers in the normal course of business through its community bank division and 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 16 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 $16.5 million at September 30, 2018, and $1.5 million at September 30, 2017.  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, 2018, the Company had $16.0 million interest-bearing deposits held at the FHLB and $4.2 million in interest-bearing deposits held at the FRB.  At September 30, 2018, the Company had no federal funds sold.  The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.

SECURITIES
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not hold trading securities at September 30, 2018 or 2017.

The Company classifies the majority of its securities as AFS.  AFS securities are those the Company may decide to sell if needed for liquidity, asset/liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale.  Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned.

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities.  Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs.

Securities Impairment
Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.  If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value.  If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.  For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes.
 
The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  In fiscal 2018, 2017 and 2016, there was no other-than-temporary impairment recorded.
 
LOANS HELD FOR SALE
LHFS include 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. Gains and losses on LHFS are recorded in non-interest income on the Consolidated Statement 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.

LOANS AND LEASES RECEIVABLE

LOANS RECEIVABLE
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances 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 Banking 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 attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay.  Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance.  Each occurrence is unique to the borrower and is evaluated separately.  In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”).  Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed.  As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan.  Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects.

The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR.  For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.  If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider.  Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt.

Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing.  The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan.

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 and related initial direct costs 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 non-interest expense. Operating lease rental income is recognized when it becomes due and is reflected as a component of non-interest income. An allowance for lease losses is not provided on operating leases.

MORTGAGE 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, 2018 and 2017, the Bank was servicing loans for others with aggregate unpaid principal balances of $134.0 million and $21.8 million, respectively.

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 Community Bank and Crestmark division 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 2018 and 2017 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”).

•
The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past seven years.  For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized.

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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.

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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.

National Lending portfolios, outside of loans and leases attributable to the Crestmark division, 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 written off after a loan becomes past due greater than 210 days for commercial 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 3. Loans and Leases Receivable, Net for further information on the ALLL.

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 non-interest expense and a valuation allowance is recorded for the asset. Operating expenses of properties are also recorded in non-interest expense.

INCOME TAXES
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination.  For tax positions not meeting the more likely than not test, no tax benefit is recorded.  The Company recognizes interest and/or penalties related to income tax matters in income tax expense. 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 12. Income Taxes for further information on Income Taxes.

PREMISES, FURNITURE AND EQUIPMENT
Land is carried at cost.  Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization.  Capital leases, where 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 range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. The Company amortizes capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable. See Note 7. Premises, Furniture and Equipment, net for further information on Premises, Furniture and Equipment.

BANK-OWNED LIFE INSURANCE
Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts.  Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs.
 
EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)
The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the Consolidated Statements of Financial Condition as a reduction of stockholders’ equity.  Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts.  The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital.  Dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company.  At September 30, 2018 and 2017, all shares in the ESOP were allocated. See Note 10. Employee Stock Ownership and Profit Sharing Plans for further information on ESOP.
 
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.

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. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the years ended September 30, 2018, 2017 or 2016. See Note 20. Goodwill and Intangible Assets for further information on Goodwill.

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 20. Goodwill and Intangible Assets for further information on Intangible Assets.

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 9. Short Term Debt and Long Term Debt for further information on Securities Sold under Agreements to Repurchase.

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 Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. The Company is adopting Accounting Standards Update 2014-09, Revenue from Contracts with Customers, and related amendments beginning October 1, 2018. For further discussion on revenue recognition, see ASU 2014-09 below in the New Accounting Pronouncements in this footnote.

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. The Company effected a 3-for-1 forward stock split of its common stock on October 4, 2018. All EPS amounts have been retrospectively adjusted to reflect this stock split. See Note 5. Earnings per Common Share for further information on EPS.

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 available for sale, net of reclassification adjustments and tax effects.  Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
 
STOCK COMPENSATION
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. See Note 11. Share-Based Compensation Plans for further information on Stock Compensation.

RECLASSIFICATION AND REVISION OF PRIOR PERIOD BALANCES
On October 5, 2018, Meta common stock began trading on a split-adjusted basis following the 3-for-1 forward stock split with respect to Meta's common stock, which the Company effected on October 4, 2018. As a result, all share and per share data for all periods presented in this Form 10-K has been adjusted to reflect the 3-for-1 forward stock split.

NEW ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company has been analyzing its data and has taken measures to ensure its systems capture data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018. The Company has chosen a vendor for a software solution and has begun the implementation of the software.

ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products
This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. - breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the Consolidated Financial Statements to be minimal.
 
ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis
ASU No. 2018-10, Codification Improvements to Topic 842
ASU No. 2018-11, Targeted Improvements

For lessees, Topic 842 requires leases to be recognized on the balance sheet, along with disclosure of key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, 2018-10 and 2018-11. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification expense recognition in the income statement.

For lessors, Topic 842 requires lessors to classify leases as sales-type, direct financing or operating leases. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases.

The new standard is effective for the Company on October 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) the new standard's effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on October 1, 2019 using the effective date as its date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before October 1, 2019.

The new standard provides several optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients,’ which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. As a lessee, the Company expects this new standard to have a material effect on its financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to (1) the recognition of ROU assets and lease liabilities on the balance sheet for the Company's office and equipment operating leases; (2) providing significant new disclosures about the Company's leasing activities. As a lessor, the Company is still in the process of assessing the impact of the standard on its existing lease portfolio. The Company does not expect a significant change in its leasing activities between now and adoption.

The new standard also provides practical expedients for a lessee’s and lessor’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company (as lessee) would not recognize ROU assets or lease liabilities. The Company (as lessee and lessor) also currently expects to elect the practical expedient to not separate lease and non-lease components for all of its leases that qualify.

ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) 
In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard effective October 1, 2018, using the modified retrospective approach with a cumulative effect adjustment included in Retained Earnings upon the date of adoption. Results for prior period amounts will not be adjusted and will continue to be reported in accordance with the Company’s historical accounting policies. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption.
The most significant impact of the standard relates to the Company's accounting for revenues of prepaid cards in its MPS division, specifically, breakage on unregistered, unused cardholder balances. For such balances, the Company recognizes breakage revenue predominantly after the month of the card balance expiration rather than ratably over the life of the prepaid card. The Company performed an analysis on such revenues and has determined an approximate impact to Retained Earnings of $2.0 million in additional earned revenue upon adoption at October 1, 2018. All other revenue streams remain substantially unchanged.

ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the Consolidated Financial Statements.

ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the Consolidated Financial Statements.

ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
This ASU targets improving the accounting treatment for hedging activities and provides more flexibility in defining what can be hedged, less earnings volatility due to ineffective hedges, and less arduous documentation requirements. The ASU also offers the ability to reclassify prepayable debt securities from HTM to AFS and subsequently sell the securities, as long as the securities are eligible to be hedged. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company early adopted this ASU as of October 1, 2017. The Company reclassified certain prepayable debt securities from HTM to AFS during the first quarter of fiscal year 2018. See Note 6. Securities for additional information on the securities reclassified.

ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities
ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)
These ASUs make revisions to seven areas of Subtopic 825-10, including that equity investments will be required to be measured at fair value with changes in fair value being recognized in net income, simplifying the impairment assessment for equity investments without readily determinable fair value, eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate fair value for financial instruments measured at amortized cost, requiring public business entities to use exit price notions when measuring fair value of financial instruments, requiring separate presentation in other comprehensive income of the portion of total change in fair value of a liability resulting from a change in the instrument specific credit risk, requiring separate presentation of financial assets and liabilities by measurement category and form of financial asset, and clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity’s other deferred tax assets. The improvements become effective in fiscal years beginning after December 15, 2017. The Company does not expect these improvements to have a material impact on its Consolidated Financial Statements.

ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash
This ASU addresses the existing diversity in classifying and presenting changes in restricted cash on the statements of cash flows. The amendments in this ASU require that the statements of cash flows explain the change during the period of total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This ASU is effective for fiscal years beginning after December 15, 2017 and is not expected to have a material impact to the Company.

ASU 2017-01, Clarifying the Definition of a Business
This ASU amends Topic 805 by providing a screen to determine when a set of assets and activities is not a business. The screen reduces the number of transactions that need to be further evaluated. The amendments in this ASU provide a framework to assist entities in evaluating whether both an input and substantive process are present and narrows the definition of “output” so the term is consistent with how outputs are described in Topic 606. The definition of a business affects many areas of accounting including, acquisitions, disposals, goodwill and consolidation. This ASU becomes effective for fiscal years beginning after December 15, 2017 and are applied prospectively. This ASU is not expected to materially impact the Company.

ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
This ASU amends Topic 350 for entities performing the two-step test to determine the amount, if any, of goodwill impairment. Under this ASU, the quantitative impairment analysis of goodwill is now only a one step test where the amount of impairment, if any, is equal to the excess of the reporting unit carrying amount over the reporting unit fair value. This ASU does not amend Topic 350 for entities performing a qualitative assessment of goodwill. The Company will early adopt this ASU beginning October 1, 2018 and will apply the guidance within, as necessary, on a prospective basis. As the Company performs a qualitative assessment over goodwill, the adoption of this ASU is not expected to have a material impact to the Company.

ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets
This ASU clarifies the scope of nonfinancial asset guidance in Subtopic 610-20 and provides guidance on the accounting for partial sales of nonfinancial assets within the scope of Subtopic 610-20. The amendments within this ASU are effective for annual reporting periods beginning after December 15, 2017. The amendments in this ASU are more impactful to the real estate, power and utilities, and alternative energy industries and is not expected to have 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
This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The reclassification is not required but is an accounting policy election that must be disclosed during the year of adoption. This ASU will be effective for fiscal years beginning after December 15, 2018 with earlier adoption permitted. At this time, the Company does not expect to elect the reclassification option.

ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods or services from nonemployees. Key improvements from this ASU include clarifying the measurement date to the grant date and eliminating the requirement to reassess classification of such awards upon vesting. Any share-based awards to nonemployees classified as a liability that are not settled prior to adoption and any equity classified awards for which a measurement date has not been established will require remeasurement through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. Upon transition, nonemployee awards are required to be measured at fair value as of the adoption date and must not remeasure assets that are completed. The Company will early adopt this ASU beginning October 1, 2018. This ASU is not expected to materially impact the Company's Consolidated Financial Statements.

ASU 2018-09, Codification Improvements
This ASU represents changes in various Subtopics to clarify, correct errors, or make minor improvements. The amendments are not expected to have a significant effect on current accounting practice. Subtopics impacted by this ASU that are relevant to the Company include Subtopic 220-10 Income Statement - Reporting Comprehensive Income-Overall, Subtopic 718-740 Compensation - Stock Compensation-Income Taxes, Subtopic 805-740 Business Combinations - Income Taxes, and Subtopic 820-10 Fair Value Measurement-Overall. Many of the amendments within this ASU do not require transition and are effective upon issuance. However, some are not effective until fiscal years beginning after December 15, 2018. The amendments within this ASU are not expected to materially impact the Company's Consolidated Financial Statements.    

ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
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 is currently in the process of reviewing this ASU to determine whether the modifications within will be adopted prior to the effective date. Although this ASU has a significant impact to the Company’s fair value disclosures, no additional impact to the Consolidated Financial Statements is expected.
v3.10.0.1
ACQUISITIONS
 12 Months Ended
Sep. 30, 2018
Business Combinations [Abstract]  
ACQUISITIONS
ACQUISITIONS
 
CRESTMARK BANCORP, INC

On August 1, 2018, the Company completed the Crestmark Acquisition. Crestmark previously provided business-to-business commercial financing. With this acquisition, the Company acquired all assets and assumed all liabilities of Crestmark at a purchase price of $295.8 million paid in stock. The aggregate value of the acquisition was based upon the issuance of 9,919,512 shares of Meta common stock and the closing price of Meta shares on July 31, 2018 of $29.82.

The Company recorded goodwill of $204.5 million associated with the acquisition. Goodwill resulted from expected operational synergies and expanded product lines. See Note 20 to the Consolidated Financial Statements for further information on goodwill.

The Company has included the financial results of Crestmark in its Consolidated Financial Statements as of the acquisition date. The Crestmark Acquisition has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the acquisition date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for the acquired assets and liabilities. The Company recognized $9.0 million in transaction-related expenses during fiscal 2018. The transaction expenses are reflected on the Consolidated Statements of Operations primarily under legal and consulting.

The following table represents the approximate fair value of the assets acquired and liabilities assumed of Crestmark on the Consolidated Statements of Financial Condition as of August 1, 2018:

 
As of August 1, 2018
 
(Dollars in Thousands)
Fair value of consideration paid

Cash paid
$
6

Stock issued
295,767

Total consideration paid
295,773

 
 
Fair value of assets acquired
 
Cash and cash equivalents
58,858

Investment & MBS securities
25,349

Loan and lease receivables held for sale
17,494

Loan and lease receivables held for investment
1,046,010

Federal Home Loan Bank stock, at cost
33

Accrued interest receivable
5,381

Premises, furniture, and equipment
18,458

Rental equipment
98,977

Foreclosed real estate and repossessed assets
1,209

Intangible assets
28,253

Other assets
22,170

Total assets
1,322,192

Fair value of liabilities assumed
 
Time certificates of deposits
295,590

Wholesale certificates of deposits
825,076

Total deposits
1,120,666

Short-term debt
11,642

Long-term debt
3,609

Accrued interest payable
3,581

Accrued expenses and other liabilities
88,301

Total liabilities assumed
1,227,799

Fair value of non-controlling interest assumed
 
Non-controlling interest
3,167

Total non-controlling interest
3,167

Fair value of net assets acquired
91,226

Goodwill resulting from acquisition
204,547




Crestmark was consolidated into the Company's Consolidated Financial Statements starting on August 1, 2018. The aggregate net interest income and net income of Crestmark consolidated into the Company's financial statements since the date of acquisition was $19.1 million and $9.7 million, respectively, for the year ended September 30, 2018. The following financial information presents the Company's results as if the Crestmark Acquisition on August 1, 2018 had occurred on October 1, 2016:

 
Twelve Months Ended
 
September 30,
(Dollars in Thousands Except Share and Per Share Data)
2018
 
2017
 
 
 
 
Net interest income
$
206,822

 
$
181,184

Net income attributable to parent
74,640

 
64,390

Basic earnings per share
1.91

 
1.71

Diluted earnings per share
1.91

 
1.70



These pro forma results are based on estimates and assumptions, which the Company believes are reasonable. They are not the results that would have been realized had the Crestmark Acquisition actually occurred on October 1, 2016 and are not necessarily indicative of the Company's Consolidated Statements of Operations in future periods. The pro forma results include adjustments related to purchase accounting, primarily related to amortization of intangibles created and accretion of loan discount.

SCS

On December 14, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and specified liabilities of Specialty Consumer Services LP ("SCS"). The assets acquired by MetaBank in the SCS acquisition include the SCS trade name, propriety underwriting model and loan management system and other assets. SCS primarily provides consumer tax advance and other consumer credit services through its loan management services and other financial products.

Under the terms of the purchase agreement, the aggregate purchase price paid at closing, which was based upon the December 14, 2016 tangible book value of SCS, was approximately $7.5 million in cash and the issuance of 339,984 shares of Meta common stock. In addition, contingent cash consideration of $17.5 million was paid out in the third quarter of fiscal 2017 and equity contingent consideration of 793,293 shares of Meta common stock was paid in the fourth quarter of fiscal 2017 following the achievement of specified performance benchmarks (described more fully below). The Company acquired assets with approximate fair values of $28.3 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and negligible other assets, resulting in goodwill of $31.4 million.

Subject to the equity earn-out terms of the purchase agreement, SCS was eligible to receive up to an aggregate of 793,293 shares of Meta common stock within 20 days after the applicable equity earn-out statement was deemed final if certain targets achieved. The equity earn-out measurements were as follows; 1) if, as of an equity earn-out measurement date, the anticipated 2018 measured gross profit met or exceeded the statement amount, MetaBank would deliver to SCS a stated number of shares of Meta common stock; 2) if, as of an equity earn-out measurement date, the aggregate anticipated loan volume under all 2018 eligible contracts was greater than or equal to the agreed upon volume amount, then MetaBank would deliver to SCS a stated number of shares of Meta common stock; and 3) if, as of an equity earn-out measurement date, each agreement specified in the contract was in effect and none of such agreements was amended or modified as of such time (except as approved in writing by the President of MetaBank, in his or her sole discretion), then MetaBank would deliver to SCS a stated number of shares of Meta l common stock. None of the equity earn-out payments was contingent on the achievement of any of the other equity earn-out targets. Upon the determined equity earn-out measurement date, MetaBank determined that each of the three earn-out measurement targets was achieved and the Company issued an aggregate of 793,293 shares of Meta common stock in the fourth quarter of fiscal 2017.

Subject to the cash earn-out terms of the purchase agreement, MetaBank agreed to pay to SCS an amount equal to 100% of the 2017 measured business gross profit up to a maximum of $17.5 million within 20 days after the date on which each determination of the cash earn-out payment was deemed final. During the third quarter of fiscal 2017, MetaBank paid out the $17.5 million of contingent cash consideration to SCS based upon the measured business gross profit.

The Company has included the financial results of SCS in its Consolidated Financial Statements subsequent to the acquisition date. The fair value of the liability for the cash contingent consideration was approximately $17.3 million and was included in other liabilities in the Company's Consolidated Statements of Financial Condition. The fair value of the equity contingent consideration was approximately $24.1 million at closing and was included in additional paid-in capital in the Company's Consolidated Statements of Financial Condition. The respective fair values of the liability and equity were estimated using an option-based income valuation method with significant inputs that were not observable in the market and thus represent a Level 3 fair value measurement as defined in the FASB's Accounting Standards Codification ("ASC") 820, Fair Value Measurements and Disclosures. The significant inputs in the Level 3 measurement not supported by market activity included the Company's probability assessments of the expected future cash flows related to the Company's acquisition of SCS during the earn-out period.

The following table represents the approximate fair value of assets acquired from and liabilities recorded of SCS on the Consolidated Statements of Financial Condition as of December 14, 2016.
 
As of December 14, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
7,548

Stock issued
10,789

Paid Consideration
18,337

Contingent consideration - cash
17,252

Contingent consideration - equity
24,142

Contingent consideration payable
41,394

    Total consideration paid
59,731

 
 

Fair value of assets acquired
 

Intangible assets
28,310

Other assets
2

Total assets
28,312

Fair value of net assets acquired
28,312

Goodwill resulting from acquisition
$
31,419


    
The SCS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities. Upon receipt of final fair value estimates on certain assets, liabilities, and contingent considerations, which must be within one year of the acquisition date, the Company made final adjustments to the purchase price allocation and retrospectively adjusted the recorded goodwill.

The Company recognized goodwill of $31.4 million as of December 14, 2016, which was calculated as the excess of both the adjusted consideration exchanged and the liabilities recorded as compared to the fair value of identifiable assets acquired. Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 20 to the Consolidated Financial Statements for further information on goodwill.

The Company recognized $0.8 million of pre-tax transaction related expenses during the fiscal year ended 2017. The transaction expenses are reflected on the Consolidated Statements of Operations primarily under legal and consulting.

EPS FINANCIAL

On November 1, 2016, the Company, through MetaBank, completed the acquisition of substantially all of the assets and certain liabilities of EPS Financial, LLC ("EPS") from privately-held Drake Enterprises, Ltd. ("Drake"). The assets acquired by MetaBank in the EPS acquisition include the EPS trade name, operating platform, and other assets. EPS is a leading provider of comprehensive tax-related financial transaction solutions for over 10,000 ERO's nationwide, offering a one-stop-shop for all tax preparer financial transactions. These solutions include a full-suite of refund settlement products, prepaid payroll card solutions and merchant services.
 
Under the terms of the purchase agreement, the aggregate purchase price, which was based upon the November 1, 2016 tangible book value of EPS, included the payment of $21.9 million in cash, after adjustments, and the issuance of 1,107,537 shares of Meta common stock. The Company acquired assets with approximate fair values of $17.9 million of intangible assets, including customer relationships, trademark, and non-compete agreements, and $0.1 million of other assets, resulting in $30.4 million of goodwill.

The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the Consolidated Statements of Financial Condition as of November 1, 2016:
 
 
As of November 1, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
21,877

Stock issued
26,507

Total consideration paid
48,384

 
 

Fair value of assets acquired
 
Intangible assets
17,930

Other assets
79

Total assets
18,009

Fair value of net assets acquired
18,009

Goodwill resulting from acquisition
$
30,375



The Company has included the financial results of EPS in its Consolidated Financial Statements subsequent to the acquisition date. The EPS transaction has been accounted for under the acquisition method of accounting. The assets and liabilities, both tangible and intangible, were recorded at their estimated fair values as of the transaction date. The Company made significant estimates and exercised judgment in estimating fair values and accounting for such acquired assets and liabilities.
 
The Company recognized goodwill of $30.4 million as of November 1, 2016, which is calculated as the excess of both the consideration exchanged and the liabilities assumed, which were negligible, as compared to the fair value of identifiable assets acquired.  Goodwill resulted from expected operational synergies and expanded product lines and is expected to be deductible for tax purposes. See Note 20 to the Consolidated Financial Statements for further information on goodwill.
 
The Company recognized $0.5 million of pre-tax transaction-related expenses during fiscal 2017. The transaction expenses are reflected on the Consolidated Statements of Operations primarily under legal and consulting.
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET
 12 Months Ended
Sep. 30, 2018
Loans and Leases Receivable Disclosure [Abstract]  
LOANS AND LEASES RECEIVABLE, NET
LOANS AND LEASES RECEIVABLE, NET

Loans and Leases

Year-end loans and leases receivable were as follows:
 
September 30, 2018
 
September 30, 2017
 
(Dollars in Thousands)
National Lending
 
 
 
Commercial finance
$
1,509,849

 
$
255,308

Consumer finance
335,361

 
140,229

Tax services
1,073

 
192

Total National Lending
1,846,283

 
395,729

Community Banking
 
 
 
Commercial and multi-family real estate
748,579

 
585,510

1-4 family real estate
223,482

 
196,706

Agricultural
60,498

 
95,394

Commercial operating
42,311

 
30,718

Consumer
23,836

 
22,775

Total Community Banking
1,098,706

 
931,103

Total gross loans and leases receivable
2,944,989

 
1,326,832

 
 
 
 
Allowance for loan and lease losses
(13,040
)
 
(7,534
)
Net deferred loan origination fees
(250
)
 
(1,461
)
Total loans and leases receivable, net
$
2,931,699

 
$
1,317,837



Annual activity in the allowance for loan and lease losses was as follows:
 
Year ended September 30,
2018

 
2017

 
2016

 
(Dollars in Thousands)
Beginning balance
$
7,534

 
$
5,635

 
$
6,255

Provision for loan and lease losses
29,433

 
10,589

 
4,605

Recoveries
2,037

 
307

 
147

Charge offs
(25,964
)
 
(8,997
)
 
(5,372
)
Ending balance
$
13,040

 
$
7,534

 
$
5,635


Allowance for loan and lease losses and recorded investment in loans and leases at September 30, 2018 and 2017 were as follows:
 
Allowance for loan and lease losses:
Beginning balance
 
Provision (recovery) for loan and lease losses
 
Charge offs
 
Recoveries
 
Ending balance
Year Ended September 30, 2018
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
800

 
$
1,976

 
$
(2,643
)
 
$
1,169

 
$
1,302

Consumer finance
—

 
5,113

 
(1,443
)
 
—

 
3,670

Tax services
5

 
21,344

 
(21,802
)
 
453

 
—

Total National Lending
805

 
28,433

 
(25,888
)
 
1,622

 
4,972

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
2,670

 
3,377

 
—

 
—

 
6,047

1-4 family real estate
803

 
(168
)
 
(45
)
 
—

 
590

Agricultural
2,574

 
(1,769
)
 
—

 
411

 
1,216

Commercial operating
150

 
23

 
—

 
—

 
173

Consumer
6

 
64

 
(31
)
 
3

 
42

Total Community Banking
6,203

 
1,527

 
(76
)
 
414

 
8,068

Unallocated
527

 
(527
)
 
—

 
—

 
—

Total
7,534

 
29,433

 
(25,964
)
 
2,037

 
13,040


Allowance for loan and lease losses:
Beginning balance
 
Provision (recovery) for loan and lease losses
 
Charge offs
 
Recoveries
 
Ending balance
Year Ended September 30, 2017
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
589

 
$
776

 
$
(626
)
 
$
61

 
$
800

Consumer finance
—

 
—

 
—

 
—

 
—

Tax services
6

 
7,612

 
(7,842
)
 
229

 
5

Total National Lending
595

 
8,388

 
(8,468
)
 
290

 
805

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
2,198

 
610

 
(138
)
 
—

 
2,670

1-4 family real estate
654

 
149

 
—

 
—

 
803

Agricultural
1,474

 
1,088

 
—

 
12

 
2,574

Commercial operating
110

 
425

 
(390
)
 
5

 
150

Consumer
51

 
(44
)
 
(1
)
 
—

 
6

Total Community Banking
4,487

 
2,228

 
(529
)
 
17

 
6,203

Unallocated
553

 
(26
)
 
—

 
—

 
527

Total
5,635

 
10,589

 
(8,997
)
 
307

 
7,534



 
Allowance
 
Loans and Leases
Recorded Investment
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
 
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
Year Ended September 30, 2018
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
$
588

 
$
714

 
$
1,302

 
$
13,612

 
$
1,496,237

 
$
1,509,849

Consumer finance
—

 
3,670

 
3,670

 
—

 
335,361

 
335,361

Tax services
—

 
—

 
—

 
—

 
1,073

 
1,073

Total National Lending
588

 
4,384

 
4,972

 
13,612

 
1,832,671

 
1,846,283

Community Banking
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
—

 
6,047

 
6,047

 
405

 
748,174

 
748,579

1-4 family real estate
—

 
590

 
590

 
94

 
223,388

 
223,482

Agricultural
—

 
1,216

 
1,216

 
1,454

 
59,044

 
60,498

Commercial operating
—

 
173

 
173

 
46

 
42,265

 
42,311

Consumer
—

 
42

 
42

 
—

 
23,836

 
23,836

Total Community Banking
—

 
8,068

 
8,068

 
1,999

 
1,096,707

 
1,098,706

Total
588

 
12,452

 
13,040

 
15,611

 
2,929,378

 
2,944,989


 
Allowance
 
Loans and Leases
Recorded Investment
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
 
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
Year Ended September 30, 2017
(Dollars in Thousands)
 
 
 
 
 
 
National Lending
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
$
—

 
$
800

 
$
800

 
$
—

 
$
255,308

 
$
255,308

Consumer finance
—

 
—

 
—

 
—

 
140,229

 
140,229

Tax services
—

 
5

 
5

 
—

 
192

 
192

Total National Lending
—

 
805

 
805

 
—

 
395,729

 
395,729

Community Banking
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
—

 
2,670

 
2,670

 
1,109

 
584,401

 
585,510

1-4 family real estate
—

 
803

 
803

 
72

 
196,634

 
196,706

Agricultural
—

 
2,574

 
2,574

 
—

 
95,394

 
95,394

Commercial operating
—

 
150

 
150

 
—

 
30,718

 
30,718

Consumer
—

 
6

 
6

 
—

 
22,775

 
22,775

Total Community Banking
—

 
6,203

 
6,203

 
—

 
931,103

 
931,103

Unallocated
—

 
527

 
527

 
—

 
—

 
—

Total
—

 
7,534

 
7,534

 
1,181

 
1,325,651

 
1,326,832



The asset classification of loans and leases at September 30, 2018, and 2017, were as follows:

Asset Classification
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Year Ended September 30, 2018
(Dollars in Thousands)
 
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
1,379,902

 
$
—

 
$
116,334

 
$
13,613

 
1,509,849

Consumer finance
335,361

 
—

 
—

 
—

 
335,361

Tax services
1,073

 
—

 
—

 
—

 
1,073

Total National Lending
1,716,336

 
—

 
116,334

 
13,613

 
1,846,283

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
736,134

 
12,251

 
194

 
—

 
748,579

1-4 family real estate
222,883

 
281

 
239

 
79

 
223,482

Agricultural
42,292

 
2,447

 
4,872

 
10,887

 
60,498

Commercial operating
42,311

 
—

 
—

 
—

 
42,311

Consumer
23,580

 
256

 
—

 
—

 
23,836

Total Community Banking
1,067,200

 
15,235

 
5,305

 
10,966

 
1,098,706

Total Loans and Leases
$
2,783,536

 
$
15,235

 
$
121,639

 
$
24,579

 
$
2,944,989


Asset Classification
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Year Ended September 30, 2017
(Dollars in Thousands)
 
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
255,308

 
$
—

 
$
—

 
$
—

 
255,308

Consumer finance
140,229

 
—

 
—

 
—

 
140,229

Tax services
192

 
—

 
—

 
—

 
192

Total National Lending
395,729

 
—

 
—

 
—

 
395,729

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
574,730

 
10,200

 
201

 
379

 
585,510

1-4 family real estate
195,838

 
525

 
247

 
96

 
196,706

Agricultural
45,770

 
6,547

 
2,939

 
40,138

 
95,394

Commercial operating
30,718

 
—

 
—

 
—

 
30,718

Consumer
22,775

 
—

 
—

 
—

 
22,775

Total Community Banking
869,831

 
17,272

 
3,387

 
40,613

 
931,103

Total Loans and Leases
$
1,265,560

 
$
17,272

 
$
3,387

 
$
40,613

 
$
1,326,832


Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by the Bank's regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.”  The loan classification and risk rating definitions are as follows:
 
Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.
 
Watch- A watch asset is generally a credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures.  Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention.  These assets are of better quality than special mention assets.
 


Special Mention- Special mention assets are a credit with potential weaknesses deserving management’s close attention and, if left uncorrected, may result in deterioration of the repayment prospects for the asset.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.
 
The adverse classifications are as follows:
 
Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position.  Assets so classified will have well-defined weaknesses creating a distinct possibility the Bank will sustain some loss if the weaknesses are not corrected.  Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors, the asset’s classification as loss is not yet appropriate.
 
Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.
 
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.

Past due loans and leases at September 30, 2018 and 2017 were as follows:
 
Accruing and Non-accruing Loans and Leases
 
Non-performing Loans and Leases
Past Due Loans and Leases
30-59 Days
Past Due
 
60-89 Days
Past Due
 
>
89 Days Past Due
 
Total Past
Due
 
Current
 
Total Loans and Leases
Receivable
 
> 89 Days Past Due and Accruing
 
Non-accrual balance
 
Total
Year Ended September 30, 2018
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
20,708

 
3,702

 
5,996

 
30,406

 
1,479,443

 
1,509,849

 
3,801

 
2,864

 
6,665

Consumer finance
3,209

 
1,595

 
2,384

 
7,188

 
328,173

 
335,361

 
2,384

 
—

 
2,384

Tax services
—

 
—

 
1,073

 
1,073

 
—

 
1,073

 
1,073

 
—

 
1,073

Total National Lending
23,917

 
5,297

 
9,453

 
38,667

 
1,807,616

 
1,846,283

 
7,258

 
2,864

 
10,122

Community Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
—

 
—

 
—

 
—

 
748,579

 
748,579

 
—

 
—

 
—

1-4 family real estate
105

 
—

 
79

 
184

 
223,298

 
223,482

 
79

 
—

 
79

Agricultural
—

 
—

 
—

 
—

 
60,498

 
60,498

 
—

 
—

 
—

Commercial operating
—

 
—

 
—

 
—

 
42,311

 
42,311

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
23,836

 
23,836

 
—

 
—

 
—

Total Community Banking
105

 
—

 
79

 
184

 
1,098,522

 
1,098,706

 
79

 
—

 
79

Total Loans and Leases
24,022

 
5,297

 
9,532

 
38,851

 
2,906,138

 
2,944,989

 
7,337

 
2,864

 
10,201


 
Accruing and Non-accruing Loans and Leases
 
Non-performing Loans and Leases
Past Due Loans and Leases
30-59 Days
Past Due
 
60-89 Days
Past Due
 
>
89 Days Past Due
 
Total Past
Due
 
Current
 
Total Loans and Leases
Receivable
 
> 89 Days Past Due and Accruing
 
Non-accrual balance
 
Total
Year Ended September 30, 2017
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
$
1,509

 
$
2,442

 
$
1,205

 
$
5,156

 
$
250,152

 
$
255,308

 
$
1,205

 
$
—

 
$
1,205

Consumer finance
2,503

 
541

 
1,387

 
4,431

 
135,798

 
140,229

 
1,387

 
—

 
1,387

Tax services
—

 
—

 
—

 
—

 
192

 
192

 
—

 
—

 
—

Total National Lending
4,012

 
2,983

 
2,592

 
9,587

 
386,142

 
395,729

 
2,592

 
—

 
2,592

Community Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
295

 
—

 
390

 
685

 
584,825

 
585,510

 
—

 
685

 
685

1-4 family real estate
370

 
79

 
—

 
449

 
196,257

 
196,706

 
—

 
—

 
—

Agricultural
—

 
—

 
34,295

 
34,295

 
61,099

 
95,394

 
34,295

 
—

 
34,295

Commercial operating
—

 
—

 
—

 
—

 
30,718

 
30,718

 
—

 
—

 
—

Consumer
9

 
17

 
19

 
45

 
22,730

 
22,775

 
19

 
—

 
19

Total Community Banking
674

 
96

 
34,704

 
35,474

 
895,629

 
931,103

 
34,314

 
685

 
34,999

Total Loans and Leases
$
4,686

 
$
3,079

 
$
37,296

 
$
45,061

 
$
1,281,771

 
$
1,326,832

 
$
36,906

 
$
685

 
$
37,591


Non-accruing loans and leases were $2.9 million and $0.7 million at September 30, 2018 and 2017, respectively.  There were $7.3 million and $36.9 million in accruing loans and leases delinquent 90 days or more at September 30, 2018 and 2017, respectively.  For the year ended September 30, 2018, gross interest income which would have been recorded had the non-accruing loans and leases been current in accordance with their original terms amounted to approximately $0.1 million, none of which was included in interest income.

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, 2018 and 2017 were as follows:

September 30, 2018
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
Loans and leases without a specific valuation allowance
(Dollars in Thousands)
National Lending
 
 
 
 
 
Commercial finance
$
8,199

 
$
8,529

 
$
—

Total National Lending
8,199

 
8,529

 
—

Community Banking
 
 
 
 
 
Commercial and multi-family real estate
405

 
405

 
—

1-4 family real estate
94

 
94

 
—

Agricultural
1,454

 
1,454

 
—

Consumer
46

 
46

 
—

Total Community Banking
1,999

 
1,999

 
—

Total
10,198

 
10,528

 
—

Loans and leases with a specific valuation allowance
 
National Lending
 
 
 
 
 
Commercial finance
$
5,413

 
$
5,663

 
$
588

Total National Lending
5,413

 
5,663

 
588

Total
5,413

 
5,413

 
588

September 30, 2017
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
Loans and leases without a specific valuation allowance
(Dollars in Thousands)
Community Banking
 
 
 
 
 
Commercial and multi-family real estate
$
1,109

 
$
1,109

 
$
—

1-4 family real estate
72

 
72

 
—

Total Community Banking
1,181

 
1,181

 
—

Total
$
1,181

 
$
1,181

 
$
—

Loans and leases with a specific valuation allowance
 
Total
$
—

 
$
—

 
$
—


Cash interest collected on impaired loans and leases was not material during the years ended September 30, 2018 and 2017.
The following table provides the average recorded investment in impaired loans and leases for the years ended September 30, 2018 and 2017.
 
 
Year Ended September 30,
 
2018
 
2017
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
(Dollars in Thousands)
National Lending
 
 
 
Commercial finance
$
1,134

 
$
—

Total National Lending
1,134

 
—

Community Banking
 
 
 
Commercial and multi-family real estate
673

 
883

1-4 family real estate
159

 
176

Agricultural
1,652

 
414

Commercial operating
—

 
202

Consumer
67

 
—

Total Community Banking
2,551

 
1,675

Total loans and leases
3,685

 
1,675



For economic or legal reasons relating to a borrower’s financial difficulties, the Company may grant to a borrower a concession for other than an insignificant period of time that the Company would not otherwise grant. The Company classifies these related loans and leases as troubled debt restructurings (“TDR”) which may involve forgiving a portion of interest or principal on existing loans or leases, making loans or leases at a rate materially less than current market rates, or extending the term of the loan or lease.

For the year ended September 30, 2018, the Company had 10 Community Banking loans with a balance of $2.0 million, and 11 National Lending loans and leases, with a balance of $2.5 million classified as TDRs. For the year ended September 30, 2017, the Company had four Community Banking loans, with a balance of $0.5 million classified as TDRs. All of the TDRs that were modified during the year ended September 30, 2018 were modified to extend the term of the loan.

During the year ended September 30, 2018, the Company had one Community Banking loan with a balance of $0.1 million that was modified in a TDR within the previous 12 months and for which there was a payment default. For the year ended September 30, 2017, there were no TDR loans for which there was a payment default.  The Company had no commitments to lend additional funds on loans or leases with terms modified in a TDR at September 30, 2018 and 2017.
v3.10.0.1
LOAN SERVICING
 12 Months Ended
Sep. 30, 2018
Transfers and Servicing [Abstract]  
LOAN SERVICING
LOAN SERVICING
 
Loans serviced for others are not reported as assets.  The unpaid principal balances of these loans at fiscal year-end were as follows:
 
September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Mortgage loan portfolios serviced for Fannie Mae
$
2,338

 
$
3,162

 
$
3,980

SBA/USDA
98,942

 
—

 
—

Other
32,726

 
18,649

 
15,452

 
$
134,006

 
$
21,811

 
$
19,432
v3.10.0.1
EARNINGS PER COMMON SHARE
 12 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
EARNINGS PER COMMON SHARE
EARNINGS PER COMMON SHARE
 
EPS is computed after deducting dividends. The Company has granted restricted share awards with dividend rights that are considered to be participating securities. Accordingly, a portion of the Company’s earnings is allocated to those participating securities in the EPS calculation. Basic earnings per share is computed by dividing income available to common stockholders after the allocation of dividends and undistributed earnings to the participating securities by the weighted average number of common shares outstanding for the period. Diluted earnings per share reflects the potential dilution that could occur if securities or other contracts to issue common stock were exercised, and is computed after giving consideration to the weighted average dilutive effect of the Company’s stock options and after the allocation of earnings to the participating securities. Antidilutive options are disregarded in the EPS calculations.
On October 5, 2018, Meta common stock began trading on a split-adjusted basis as a result of the 3-for-1 forward stock split with respect to Meta's common stock, which was effected on October 4, 2018. As a result of the stock split, the number of issued and outstanding shares of Meta common stock increased to 39.2 million shares, which includes shares issued pursuant to the Crestmark Acquisition.
A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2018, 2017 and 2016 is presented below. All share and per share data reported for all periods presented in the table below has been adjusted to reflect the 3-for-1 forward stock split.
 
 
2018
 
2017
 
2016
 
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
51,620

 
$
44,917

 
$
33,220

Weighted average common shares outstanding
30,737,499

 
27,741,276

 
25,331,868

Basic income per common share
$
1.68

 
$
1.62

 
$
1.31

 
 
 
 
 
 
Diluted income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
51,620

 
$
44,917

 
$
33,220

Weighted average common shares outstanding
30,737,499

 
27,741,276

 
25,331,868

     Outstanding options - based upon the two-class method
115,551

 
166,956

 
160,170

Weighted average diluted common shares outstanding
30,853,050

 
27,908,232

 
25,492,038

Diluted income per common share
$
1.67

 
$
1.61

 
$
1.30



All stock options were considered in computing diluted EPS for the years ended September 30, 2018, 2017, and 2016.
v3.10.0.1
SECURITIES
 12 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
SECURITIES
SECURITIES
 
During the first quarter of fiscal 2018, the Company early adopted Accounting Standard Update ("ASU") 2017-12, "Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities." Due to the early adoption of the ASU, the Company transferred $204.7 million of investment securities and $101.3 million of MBS from HTM to AFS during the first quarter of fiscal 2018. In connection with the Crestmark Acquisition, the Company transferred $40.9 million of investment securities from HTM to AFS during the fourth quarter of fiscal 2018, as allowed through ASC 320-10-25-6(c), which allows for the transfer of securities from HTM in the event of a major business combination.

Securities available for sale at September 30, 2018 and 2017 were as follows:
 
Available For Sale
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2018
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Small business administration securities
$
45,591

 
$
1

 
$
(1,255
)
 
$
44,337

Obligation of states and political subdivisions
17,154

 
49

 
(293
)
 
16,910

Non-bank qualified obligations of states and political subdivisions
1,140,884

 
826

 
(31,825
)
 
1,109,885

Asset-backed securities
310,700

 
2,585

 
(257
)
 
313,028

Mortgage-backed securities
378,301

 
—

 
(14,236
)
 
364,065

Total debt securities
1,892,630

 
3,461

 
(47,866
)
 
1,848,225

Common equities and mutual funds
3,172

 
635

 
(7
)
 
3,800

Total available for sale securities
$
1,895,802

 
$
4,096

 
$
(47,873
)
 
$
1,852,025


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Small business administration securities
$
57,046

 
$
825

 
$
—

 
$
57,871

Non-bank qualified obligations of states and political subdivisions
938,883

 
14,983

 
(3,037
)
 
950,829

Asset-backed securities
94,451

 
2,381

 
—

 
96,832

Mortgage-backed securities
588,918

 
1,259

 
(3,723
)
 
586,454

Total debt securities
1,679,298

 
19,448

 
(6,760
)
 
1,691,986

Common equities and mutual funds
1,009

 
436

 
—

 
1,445

Total available for sale securities
$
1,680,307

 
$
19,884

 
$
(6,760
)
 
$
1,693,431



Securities held to maturity at September 30, 2018 and 2017 were as follows:
 
Held to Maturity
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2018
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
$
164,304

 
$
—

 
$
(10,758
)
 
$
153,546

Mortgage-backed securities
7,850

 
—

 
(422
)
 
7,428

Total held to maturity securities
$
172,154

 
 
 
$
(11,180
)
 
$
160,974


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
19,247

 
$
157

 
$
(36
)
 
$
19,368

Non-bank qualified obligations of states and political subdivisions
430,593

 
4,744

 
(2,976
)
 
432,361

Mortgage-backed securities
113,689

 
—

 
(1,233
)
 
112,456

Total held to maturity securities
$
563,529

 
$
4,901

 
$
(4,245
)
 
$
564,185



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 determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes collection will occur for all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.
 
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: available for sale, held to maturity or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income.  HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not have any trading securities at September 30, 2018.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2018, and 2017, were as follows:
 
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2018
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
$
43,097

 
$
(1,255
)
 
$
—

 
$
—

 
$
43,097

 
$
(1,255
)
Obligations of states and political subdivisions
11,036

 
(279
)
 
881

 
(14
)
 
11,917

 
(293
)
Non-bank qualified obligations of states and political subdivisions
626,693

 
(13,539
)
 
358,095

 
(18,286
)
 
984,788

 
(31,825
)
Asset-backed securities
146,638

 
(257
)
 
—

 
—

 
146,638

 
(257
)
Mortgage-backed securities
121,217

 
(3,292
)
 
242,849

 
(10,944
)
 
364,066

 
(14,236
)
Total debt securities
948,681

 
(18,622
)
 
601,825

 
(29,244
)
 
1,550,506

 
(47,866
)
Common equities and mutual funds
1,818

 
(7
)
 
—

 
—

 
1,818

 
(7
)
Total available for sale securities
$
950,499

 
$
(18,629
)
 
$
601,825

 
$
(29,244
)
 
$
1,552,324

 
$
(47,873
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
$
280,900

 
$
(2,887
)
 
$
5,853

 
$
(150
)
 
$
286,753

 
$
(3,037
)
Mortgage-backed securities
237,897

 
(1,625
)
 
100,287

 
(2,098
)
 
338,184

 
(3,723
)
Total available for sale securities
$
518,797

 
$
(4,512
)
 
$
106,140

 
$
(2,248
)
 
$
624,937

 
$
(6,760
)


Held To Maturity
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2018
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
$
6,178

 
$
(287
)
 
$
147,368

 
$
(10,471
)
 
$
153,546

 
$
(10,758
)
Mortgage-backed securities
—

 
—

 
7,428

 
(422
)
 
7,428

 
(422
)
Total held to maturity securities
6,178

 
(287
)
 
154,796

 
(10,893
)
 
160,974

 
(11,180
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
1,364

 
$
(6
)
 
$
4,089

 
$
(30
)
 
$
5,453

 
$
(36
)
Non-bank qualified obligations of states and political subdivisions
202,018

 
(2,783
)
 
6,206

 
(193
)
 
208,224

 
(2,976
)
Mortgage-backed securities
112,456

 
(1,233
)
 
—

 
—

 
112,456

 
(1,233
)
Total held to maturity securities
$
315,838

 
$
(4,022
)
 
$
10,295

 
$
(223
)
 
$
326,133

 
$
(4,245
)


As of September 30, 2018 and 2017, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell), and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at September 30, 2018 or 2017.

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.

Available For Sale
 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2018
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
2,532

 
$
2,529

Due after one year through five years
41,415

 
41,504

Due after five years through ten years
352,099

 
350,143

Due after ten years
1,118,283

 
1,089,984

 
1,514,329

 
1,484,160

Mortgage-backed securities
378,301

 
364,065

Common equities and mutual funds
3,172

 
3,800

Total available for sale securities
$
1,895,802

 
$
1,852,025

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
36,586

 
37,674

Due after five years through ten years
347,831

 
358,198

Due after ten years
705,963

 
709,660

 
1,090,380

 
1,105,532

Mortgage-backed securities
588,918

 
586,454

Common equities and mutual funds
1,009

 
1,445

Total available for sale securities
$
1,680,307

 
$
1,693,431


Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2018
(Dollars in Thousands)
 
 
 
 
Due after ten years
164,304

 
153,546

 
164,304

 
153,546

Mortgage-backed securities
7,850

 
7,428

Total held to maturity securities
$
172,154

 
$
160,974

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
1,483

 
$
1,480

Due after one year through five years
17,926

 
18,160

Due after five years through ten years
144,996

 
147,832

Due after ten years
285,435

 
284,257

 
449,840

 
451,729

Mortgage-backed securities
113,689

 
112,456

Total held to maturity securities
$
563,529

 
$
564,185





Activities related to the sale of securities are summarized below.
 
 
2018
 
2017
 
2016
Year ended
(Dollars in Thousands)
Available For Sale
 
 
 
 
 
   Proceeds from sales
$
596,758

 
$
457,306

 
$
285,508

   Gross gains on sales
2,551

 
4,091

 
1,459

   Gross losses on sales
10,728

 
4,628

 
1,785

 Net loss on available for sale securities
(8,177
)
 
(537
)
 
(326
)
 
 
 
 
 
 
Held To Maturity
 
 
 
 
 
   Net carrying amount of securities sold
$
—

 
$
5,826

 
$
—

   Gross realized gain on sales
—

 
92

 
—

   Gross realized losses on sales
—

 
48

 
—

Net gain on held to maturity securities
—

 
44

 
—



During the fiscal 2018 fourth quarter, the Company completed a balance sheet restructuring related to the closing of the Crestmark Acquisition, selling approximately $260 million of lower-yielding AFS securities.

Securities with fair values of approximately $8.0 million and $5.7 million at September 30, 2018 and 2017, respectively, were pledged as collateral for public funds on deposit.  Securities with fair values of approximately $5.9 million and $3.8 million at September 30, 2018, and 2017, respectively, were pledged as collateral for individual, trust and estate deposits.

Federal Home Loan Bank ("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 FHLBs and actions of their regulator, the Federal Housing Finance Agency. The Company periodically evaluates investments for other than temporary impairment. There was no impairment of this investment in 2018, 2017 or 2016.

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 $23.4 million and $61.1 million at September 30, 2018 and 2017, respectively. At fiscal year-end 2018 and 2017, the Company pledged securities with fair values of approximately $1.06 billion and $1.07 billion, respectively, against specific FHLB advances.  In addition, a combination of qualifying residential and other real estate loans of approximately $756.0 million and $628.0 million were pledged as collateral at September 30, 2018 and 2017, respectively.

Included in Interest and Dividend Income from other investments is $1.1 million, $0.5 million and $0.6 million related to dividend income on FHLB stock for the fiscal years ended September 30, 2018, 2017 and 2016, respectively.
v3.10.0.1
PREMISES, FURNITURE, AND EQUIPMENT, NET
 12 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
PREMISES, FURNITURE, AND EQUIPMENT, NET
PREMISES, FURNITURE AND EQUIPMENT, NET
 
Year-end premises and equipment were as follows:
 
September 30,
2018
 
2017
 
(Dollars in Thousands)
 
 
 
 
Land
$
2,932

 
$
1,578

Buildings
27,359

 
10,642

Furniture, fixtures, and equipment
56,438

 
46,934

Capitalized leases
2,259

 
2,259

 
88,988

 
61,413

Less: accumulated depreciation and amortization
(48,530
)
 
(42,093
)
Net book value
$
40,458

 
$
19,320



Depreciation expense of premises, furniture and equipment included in occupancy and equipment expense was approximately $5.7 million, $5.5 million and $5.4 million for the years ended September 30, 2018, 2017 and 2016, respectively. Amortization expense on capitalized leases for the years ended September 30, 2018, 2017 and 2016, was $0.1 million, $0.1 million and $0.2 million, respectively, and is included in occupancy and equipment expense. Substantially all of the Company's capitalized leases at September 30, 2018 were building leases.
v3.10.0.1
TIME CERTIFICATES OF DEPOSITS
 12 Months Ended
Sep. 30, 2018
Deposits [Abstract]  
TIME CERTIFICATES OF DEPOSITS
TIME CERTIFICATES OF DEPOSITS
 
Time certificates of deposits in denominations of $250,000 or more were approximately $163.3 million and $85.2 million at September 30, 2018, and 2017, respectively.
 
At September 30, 2018, the scheduled maturities of time certificates of deposits were as follows for the years ending:
 
As of September 30,
 
(Dollars in Thousands)
 
 
 
2019
$
1,562,801

2020
125,581

2021
16,623

2022
6,929

2023
1,048

Total (1)
1,712,982


(1) As of September 30, 2018, the Company had $1.44 billion of certificates of deposits 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.
v3.10.0.1
SHORT TERM DEBT AND LONG TERM DEBT
 12 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
SHORT TERM DEBT AND LONG TERM DEBT
SHORT TERM DEBT AND LONG TERM DEBT

Short Term Debt
September 30,
2018
 
2017
 
 
 
 
Overnight federal funds purchased
$
422,000

 
$
987,000

Short-term FHLB advances
—

 
415,000

Short-term capital lease
65

 
62

Repurchase agreements
3,694

 
2,472

     Total
425,759

 
1,404,534



The Company had $422.0 million of overnight federal funds purchased from the FHLB at September 30, 2018 as compared to $987.0 million at September 30, 2017. At September 30, 2018, the Company had no short-term advances from the FHLB as compared to $415.0 million at September 30, 2017.
 
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 2018 and 2017, the Bank pledged securities with fair values of approximately $1.06 billion and $1.07 billion, respectively, against specific FHLB advances.  In addition, qualifying real estate loans of approximately $756.0 million, and $628.0 million were pledged as collateral at September 30, 2018, and 2017, respectively.

As of September 30, 2018, the Company was the lessee on three capital leases, two equipment leases and one property lease.  At September 30, 2018, the portion of the liability expected to be expensed and amortized over the next 12 months is approximately $64,818.

Securities sold under agreements to repurchase totaled approximately $3.7 million and $2.5 million at September 30, 2018, and 2017, respectively.

An analysis of securities sold under agreements to repurchase at September 30, 2018 and 2017 follows:

September 30,
2018
 
2017
 
(Dollars in Thousands)
 
 
 
 
Highest month-end balance
$
3,740

 
$
3,782

Average balance
2,557

 
2,225

Weighted average interest rate for the year
2.05
%
 
0.98
%
Weighted average interest rate at year end
2.48
%
 
1.59
%


The Company pledged securities with fair values of approximately $13.9 million at September 30, 2018, as collateral for securities sold under agreements to repurchase.  There were $9.3 million of securities pledged as collateral for securities sold under agreements to repurchase at September 30, 2017.

The Company has a line of credit with another financial institution for $25.0 million as of September 30, 2018. This line of credit has no fee, and, as of September 30, 2018, the Company had not drawn on it.


Long Term Debt
September 30,
2018
 
2017
(Dollars in Thousands)
 
 
 
Long-term FHLB advances
$
—

 
$
—

Trust preferred securities
13,661

 
10,310

Subordinated debentures (net of issuance costs)
73,491

 
73,347

Long-term capital lease
1,811

 
1,876

     Total
88,963

 
85,533



At September 30, 2018 and 2017, the Company had no long-term advances from the FHLB.

At September 30, 2018, the scheduled maturities of the Company's long-term debt were as follows for the years ending:
September 30,
 
 
 
 
(Dollars in Thousands)
Trust preferred securities
Subordinated debentures
Long-term capital lease
Total
2019
$
—

$
—

$
—

$
—

2020
—

—

73

73

2021
—

—

77

77

2022
—

—

82

82

2023
—

—

87

87

Thereafter
13,661

73,491

1,492

88,644

Total long-term debt
$
13,661

$
73,491

$
1,811

$
88,963



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 London Interbank Offered Rate (“LIBOR”) plus 3.75% (6.35% at September 30, 2018, and 5.22% at September 30, 2017), 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, 2018 was 5.31%. 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, 2018, the Company had $73.5 million in subordinated debentures, net of issuance costs of $1.5 million. Accumulated interest expense on the subordinated debentures was $8.6 million as of September 30, 2018.
    
As of September 30, 2018, the Company was the lessee on three capital leases, two equipment leases and one property lease.  At September 30, 2018, the portion of the liability expected to be expensed and amortized beyond 12 months was $1.8 million. The majority of the $1.8 million is related to the Urbandale, Iowa retail branch location.
v3.10.0.1
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 12 Months Ended
Sep. 30, 2018
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS
 
All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split with respect to the Company's common stock effected on October 4, 2018.

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 $2,073,000, $1,668,000 and $1,150,000 was recorded for the years ended September 30, 2018, 2017 and 2016, respectively.  Contributions of $2,011,040, $1,606,102 and $1,174,682 were made to the ESOP during the years ended September 30, 2018, 2017 and 2016, respectively.
 
Contributions to the ESOP and shares released from suspense are allocated among ESOP participants on the basis of compensation in the year of allocation.  Benefits generally become 100% vested after seven years of credited service.  Prior to the completion of seven years of credited service, a participant who terminates employment for reasons other than death or disability receives a reduced benefit based on the ESOP’s vesting schedule.  Forfeitures are reallocated among remaining participating employees in the same proportion as contributions.  Benefits are payable in the form of stock upon termination of employment.  The Company’s contributions to the ESOP are not fixed, so benefits payable under the ESOP cannot be estimated.
 
For the years ended September 30, 2018, 2017 and 2016, 72,996 shares, 61,458 shares and 58,143 shares, from the suspense account, with a fair value of $27.55, $26.13 and $20.20 per share, respectively, were released. For the years ended September 30, 2018, 2017 and 2016, allocated shares and total ESOP shares reflect 6,687 shares, 42,378 shares and 46,506 shares, respectively, withdrawn from the ESOP by participants who were no longer with the Company or by participants diversifying their holdings.  At September 30, 2018, 2017 and 2016, there were 3,987, 4,437 and 8,130 shares purchased, respectively, for dividend reinvestment.

Year-end ESOP shares are as follows:
 
At September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
 
 
Allocated shares
812,346

 
768,657

 
788,616

Unearned shares
—

 


 
—

Total ESOP shares
812,346

 
768,657

 
788,616

Fair value of unearned shares
$
—

 
$
—

 
$
—



The Company also has a profit sharing plan covering substantially all full-time employees.  Contribution expense to the profit sharing plan, included in compensation and benefits, for the years ended September 30, 2018, 2017 and 2016 was $2.2 million, $1.6 million and $1.3 million, respectively.
v3.10.0.1
SHARE BASED COMPENSATION PLANS
 12 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
SHARE BASED COMPENSATION PLANS
SHARE-BASED COMPENSATION PLANS
 
All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company with respect to its common stock on October 4, 2018.

The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested restricted shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.
 
The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2018, 2017 and 2016.
 
Year Ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,139, $3,907, and $192, respectively
$
7,878

 
$
6,486

 
$
559



As of September 30, 2018, stock-based compensation expense not yet recognized in income totaled $17.0 million, which is expected to be recognized over a weighted-average remaining period of 3.59 years.
 
At grant date, the fair value of options awarded to recipients is estimated using a Black-Scholes valuation model.  The exercise price of stock options equals the fair market value of the underlying stock at the date of grant.  Options are issued for 10-year periods with 100% vesting generally occurring either at grant date or over a four-year period.  No options were granted during the years ended September 30, 2018, 2017 or 2016.  The intrinsic value of options exercised during the years ended September 30, 2018, 2017 and 2016 were $1.9 million, $1.8 million and $1.5 million, respectively.
 
Shares have previously been granted each year to executives and senior leadership members under the applicable Company incentive plan. These shares vest at various times ranging from immediately to four years based on circumstances at time of grant. The fair value is determined based on the fair market value of the Company’s stock on the grant date.  Director shares are issued to the Company’s directors, and these shares vest immediately.  The total fair value of director’s shares granted during the years ended September 30, 2018, 2017 and 2016 was $1.1 million, $0.5 million and $0.2 million, respectively.
 
In addition to the Company’s 2002 Omnibus Incentive Plan, the Company also maintains the 1995 Stock Option and Incentive Plan.  No new options were, or could have been, awarded under the 1995 plan during the year ended September 30, 2018; however, previously awarded options were exercised under this plan during the year ended September 30, 2017.

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

The following tables show the activity of options and share awards (including shares of restricted stock subject to vesting and fully-vested restricted stock) granted, exercised or forfeited under all of the Company’s option and incentive plans during the years ended September 30, 2018 and 2017.
 
 
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, 2017
227,271

 
$
7.54

 
2.28

 
$
4,225

Granted
—

 
—

 
—

 
—

Exercised
(71,310
)
 
5.48

 
—

 
1,909

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2018
155,961

 
$
8.48

 
1.78

 
$
2,974

 
 
 
 
 
 
 
 
Options exercisable end of year
155,961

 
$
8.48

 
1.78

 
$
2,974

 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2016
376,680

 
$
8.58

 
2.68

 
$
4,379

Granted
—

 
—

 
—

 
—

Exercised
(88,158
)
 
11.13

 
—

 
1,790

Forfeited or expired
(61,251
)
 
9

 
—

 
1,464

Options outstanding, September 30, 2017
227,271

 
$
7.54

 
2.28

 
$
4,225

 
 
 
 
 
 
 
 
Options exercisable end of year
227,271

 
$
7.54

 
2.28

 
$
4,225



 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2017
913,578

 
$
28.99

Granted
354,108

 
30.36

Vested
(253,944
)
 
27.49

Forfeited or expired
(7,929
)
 
23.27

Nonvested shares outstanding, September 30, 2018
1,005,813

 
$
29.89

 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2016
61,968

 
$
13.79

Granted
949,812

 
29.16

Vested
(87,405
)
 
21.41

Forfeited or expired
(10,797
)
 
18.80

Nonvested shares outstanding, September 30, 2017
913,578

 
$
28.99
v3.10.0.1
INCOME TAXES
 12 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
INCOME TAXES
INCOME TAXES

The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following:
 
Years ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Federal:
 
 
 
 
 
Current
$
(4,023
)
 
$
12,153

 
$
4,410

Deferred
5,895

 
(5,040
)
 
(440
)
 
1,872

 
7,113

 
3,970

 
 
 
 
 
 
State:
 

 
 

 
 

Current
2,611

 
4,366

 
1,422

Deferred
634

 
(1,246
)
 
210

 
3,245

 
3,120

 
1,632

 
 
 
 
 
 
Income tax expense
$
5,117

 
$
10,233

 
$
5,602



The tax effects of the Company's temporary differences that give rise to significant portions of its deferred tax assets and liabilities at September 30, 2018 and 2017 were:

September 30,
2018
 
2017
 
(Dollars in Thousands)
Deferred tax assets:
 
 
 
Bad debts
$
3,224

 
$
2,832

Deferred compensation
3,495

 
1,548

Stock based compensation
3,758

 
3,436

AMT Credit
—

 
1,869

Intangibles
—

 
5,235

Net unrealized losses on securities available for sale
10,663

 
—

Valuation adjustments
6,991

 
—

General business credits (1)
12,243

 
—

Accrued expenses
3,144

 
1,188

Other assets
1,629

 
1,579

 
45,147

 
17,687

 
 
 
 
Deferred tax liabilities:
 

 
 

Premises and equipment
(347
)
 
(1,713
)
Intangibles
(4,231
)
 
—

Net unrealized gains on securities available for sale
—

 
(4,934
)
Deferred income
(2,070
)
 
—

Leased assets
(17,985
)
 
—

Other liabilities
(1,777
)
 
(1,939
)
 
(26,410
)
 
(8,586
)
 
 
 
 
Net deferred tax assets
$
18,737

 
$
9,101


(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the year ended September 30, 2018 or in previous periods by Crestmark prior to acquisition. These credits expire on September 30, 2037.

The table below reconciles the statutory federal income tax expense and rate to the effective income tax expense and rate for the years presented. The Company's effective tax rate is calculated by dividing income tax expense by income before income tax expense.
Years ended September 30,
2018
 
2017
2016
(Dollars in Thousands)
Amount
 
Rate
 
Amount
 
Rate
Amount
 
Rate
 
 
 
 
 
 
 
 
 
 
 
Statutory federal income tax expense and rate
$
14,082

 
24.5
 %
 
$
19,303

 
35.0
 %
$
13,588

 
35.0
 %
Change in tax rate resulting from:
 
 
 
 
 
 
 
 
 
 
State income taxes net of federal benefits
2,461

 
4.3
 %
 
2,014

 
3.7
 %
933

 
2.4
 %
Tax exempt income
(6,968
)
 
(12.1
)%
 
(9,991
)
 
(18.1
)%
(8,257
)
 
(21.3
)%
Nondeductible acquisition costs
1,295

 
2.3
 %
 
—

 
—
 %
—

 
—
 %
General business credits
(3,948
)
 
(6.9
)%
 
—

 
—
 %
—

 
—
 %
Tax Reform
3,849

 
6.7
 %
 
—

 
—
 %
—

 
—
 %
Amended Crestmark Bancorp historical tax return
(4,644
)
 
(8.1
)%
 
—

 
—
 %
—

 
—
 %
Other, net
(1,010
)
 
(1.7
)%
 
(1,093
)
 
(2.0
)%
(662
)
 
(1.7
)%
Total income tax expense
$
5,117

 
9.0
 %
 
$
10,233

 
18.6
 %
$
5,602

 
14.4
 %


As of September 30, 2018, the Company had a gross deferred tax asset of $2.0 million for separate company state cumulative net operating loss carryforwards, for which $1.6 million was reserved. At September 30, 2017, the Company had a gross deferred tax asset of $1.3 million for separate company state cumulative net operating loss carryforwards, which was fully reserved for.

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, 2018, or 2017 with the exception of the state cumulative net operating loss carryforwards discussed above.

Federal income tax laws provided savings banks with additional bad debt deductions through September 30, 1987, totaling $6.7 million for the Bank.  Accounting standards do not require a deferred tax liability to be recorded on this amount, which liability otherwise would total approximately $1.4 million at September 30, 2018 and 2017.  If the Bank were to be liquidated or otherwise cease to be a bank, or if tax laws were to change, the $1.4 million would be recorded as expense.

The Tax Act was signed into law on December 22, 2017. In addition to implementing numerous other changes to the U.S. tax regime, the Tax Act lowers the U.S. corporate tax rate from 35% to 21% effective for taxable years beginning on or after January 1, 2018. GAAP requires that the impact of tax legislation be recognized in the period in which the law was enacted.

As a result of the Tax Act, the Company remeasured its deferred tax assets and deferred tax liabilities during its fiscal 2018 first quarter, resulting in additional income tax expense of $3.6 million. As the Company’s fiscal year end ends on September 30, the statutory corporate rate for fiscal 2018 was prorated to 24.5%.

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 year ended September 30, 2018, $4.0 million in investment tax credits were recognized as a reduction to income tax expense. During the fiscal years ended September 30, 2017 and 2016, no investment tax credits were recognized.

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, 2015 and later remain subject to examination by the Internal Revenue Service.  For state purposes, the tax years ended September 30, 2015 and later remain open for examination, with few exceptions.
 
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2018, and 2017 follows:
 
September 30,
2018

 
2017

 
(Dollars in Thousands)
Balance at beginning of year
$
645

 
$
525

Additions for tax positions related to the current year
—

 
192

Additions for tax positions related to the prior years
—

 
31

Reductions for tax positions related to prior years
(211
)
 
(103
)
Balance at end of year
$
434

 
$
645


 
The total amount of unrecognized tax benefits that, if recognized, would impact the effective rate was $384,000 as of September 30, 2018.  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 $68,000 as of September 30, 2018.  The Company does not anticipate any significant change in the total amount of unrecognized tax benefits within the next 12 months.
v3.10.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS
 12 Months Ended
Sep. 30, 2018
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 "Basel III Capital Rules") that became effective on January 1, 2015, subject to phase-in periods for certain requirements and other provisions of the Basel III Capital Rules. Under the Basel III 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 Basel III 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, 2018, both the Bank and the Company exceeded federal regulatory minimum capital requirements to be classified as well-capitalized under the prompt corrective action requirements.  The Company and the Bank took the accumulated other comprehensive income (“AOCI”) opt-out election; under the rule, non-advanced approach banking organizations were given a one-time option to exclude certain AOCI components.  The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.

 
Company
 
Bank
 
Minimum
Requirement For
Capital Adequacy
Purposes
 
Minimum Requirement
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
8.50
%
 
9.75
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
10.56

 
12.50

 
4.50

 
6.50

Tier 1 capital ratio
10.97

 
12.56

 
6.00

 
8.00

Total qualifying capital ratio
13.18

 
12.89

 
8.00

 
10.00

 
 
 
 
 
 
 
 
September 30, 2017
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Tier 1 leverage ratio
7.64
%
 
9.64
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
13.97

 
18.22

 
4.50

 
6.50

Tier 1 capital ratio
14.46

 
18.22

 
6.00

 
8.00

Total qualifying capital ratio
18.41

 
18.59

 
8.00

 
10.00



The following table provides a reconciliation of the amounts included in the table above for the Company.
 
Standardized Approach (1)
September 30, 2018
 
(Dollars in Thousands)
 
 
Total stockholders' equity
$
747,726

Adjustments:
 

LESS: Goodwill, net of associated deferred tax liabilities
299,456

LESS: Certain other intangible assets
64,716

LESS: Net unrealized gains (losses) on available-for-sale securities
(33,114
)
LESS: Non-controlling interest
3,574

LESS: Unrealized currency gains (losses)
3

Common Equity Tier 1 (1)
413,091

Long-term debt and other instruments qualifying as Tier 1
13,661

Tier 1 minority interest not included in common equity tier 1 capital
2,118

Total Tier 1 capital
428,870

Allowance for loan and lease losses
13,185

Subordinated debentures (net of issuance costs)
73,491

Total qualifying capital
515,546


(1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio.  Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021.  The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015.

Under the Basel III Capital Rules, 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. On January 1, 2018, the Company and Bank were in compliance with the capital conservation buffer requirement. The capital conservation buffer was subject to a three year phase-in and will increase the three risk-based capital ratios by 0.625% for 2019, at which point the Common Equity Tier 1 risk-based, Tier 1 risk-based and total risk-based capital ratios will be 7.0%, 8.5% and 10.5%, respectively.
v3.10.0.1
COMMITMENTS AND CONTINGENCIES
 12 Months Ended
Sep. 30, 2018
Commitments and Contingencies Disclosure [Abstract]  
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES
 
In the normal course of business, the Bank makes various commitments to extend credit which are not reflected in the accompanying Consolidated Financial Statements.
 
At September 30, 2018 and 2017, unfunded loan commitments approximated $748.8 million and $233.2 million, respectively, excluding undisbursed portions of loans in process. The increase over the prior year was primarily attributable to loans acquired through the Crestmark Acquisition. Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are cancelled upon expiration of the commitment term as outlined in each individual contract.
 
The Company had $1.4 million in commitments to purchase securities at September 30, 2018 and none at September 30, 2017. The Company had no commitments to sell securities at September 30, 2018 or September 30, 2017.
 
The exposure to credit loss in the event of non-performance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments. Management monitors several factors when estimating its allowance for uncollectible off-balance-sheet credit exposures, including, but not limited to, economic developments and historical loss rates. At September 30, 2018, the Company had an allowance for credit losses on off-balance sheet credit exposures of $0.1 million, as compared to $0.2 million at September 30, 2017. 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 April 15, 2013, with a lawsuit captioned Inter National Bank v. NetSpend Corporation, MetaBank, BDO USA, LLP d/b/a BDO Seidman, Cause No. C-2084-12-I filed in the District Court of Hidalgo County, Texas. The Plaintiff’s Second Amended Original Petition and Application for Temporary Restraining Order and Temporary Injunction adds both MetaBank and BDO Seidman to the original causes of action against NetSpend. NetSpend acts as a prepaid card program manager and processor for both INB and MetaBank. According to the Petition, NetSpend has informed Inter National Bank (“INB”) that the depository accounts at INB for the NetSpend program supposedly contained $10.5 million less than they should. INB alleges that NetSpend has breached its fiduciary duty by making affirmative misrepresentations to INB about the safety and stability of the program, and by failing to timely disclose the nature and extent of any alleged shortfall in settlement of funds related to cardholder activity and the nature and extent of NetSpend’s systemic deficiencies in its accounting and settlement processing procedures. To the extent that an accounting reveals that there is an actual shortfall, INB alleges that MetaBank may be liable for portions or all of said sum due to the fact that funds have been transferred from INB to MetaBank, and thus MetaBank would have been unjustly enriched. The Bank is vigorously contesting this matter. In January 2014, NetSpend was granted summary judgment in this matter which is under appeal. Because the theory of liability against both NetSpend and the Bank is the same, the Bank views the NetSpend summary judgment as a positive in support of its position.  An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

The Bank was served on October 14, 2016, with a lawsuit captioned Card Limited, LLC v. MetaBank dba Meta Payment Systems, Civil No. 2:16-cv-00980 in the United States District Court for the District of Utah. This action was initiated by former prepaid program manager of the Bank, which was terminated by the Bank in fiscal year 2016. Card Limited alleges that after all of the programs have been wound down, there are two accounts with a positive balance to which they are entitled. The Bank’s position is that Card Limited is not entitled to the funds contained in said accounts. The total amount to which Card Limited claims it is entitled is $4,001,025. The Bank intends to vigorously defend this claim. An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

Other than the matters set forth above and litigation routine to the Company's or its subsidiaries' respective businesses, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party.
v3.10.0.1
LEASE COMMITMENTS
 12 Months Ended
Sep. 30, 2018
Leases [Abstract]  
LEASE COMMITMENTS
LEASE COMMITMENTS
 
The Company has leased property under various non-cancelable operating lease agreements which expire at various times through 2037, and require annual rentals ranging from $400 to $789,000 plus the payment of property taxes, normal maintenance, and insurance on certain properties. The Company also entered into capital lease agreements during the fiscal year ended September 30, 2015, for building and equipment expiring at various times through fiscal year 2035. Amortization expense for these capital leases was $0.1 million for the fiscal year ended September 30, 2018, and included in interest expense.

In November 2014, the Company entered into a sale-leaseback transaction for one of its community bank locations in the Des Moines area.  This lease meets the requirements of a capital lease and has been reflected as such in the financial statements.  The original term of the lease is 20 years and does not contain any penalties for failure to renew after the initial 20 year term where guarantees or loans from the lessee to the lessor are expected to be outstanding. The Company has the option to extend the lease for four additional five year terms at the conclusion of the original lease term.

The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the years presented below as of September 30, 2018.

 
Year Ended September 30,
 
(Dollars in Thousands)
 
Operating
Leases
 
Capital
Leases
2019
$
3,854

 
$
179

2020
3,656

 
182

2021
3,429

 
182

2022
2,955

 
182

2023
2,561

 
182

Thereafter
21,428

 
2,058

Total Leases Commitments
$
37,883

 
$
2,965

 
 
 
 
Amounts representing interest
 

 
$
1,089

Present value of net minimum lease payments
 

 
1,876
v3.10.0.1
SEGMENT REPORTING
 12 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
SEGMENT REPORTING
SEGMENT REPORTING
 
An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

The Company reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other. The Meta Payment Systems and Tax Services divisions are reported in the Payments segment. The Community Banking, Commercial Finance and Consumer Finance divisions are reported in the Banking segment. Certain shared services, including the investment portfolio, wholesale deposits and borrowings, are included in Corporate Services/Other.

 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2018
 
 
 
 
 
 
 
Interest income
$
24,487

 
$
97,817

 
$
36,230

 
$
158,534

Interest expense
1,646

 
7,012

 
19,327

 
27,985

Net interest income
22,841

 
90,805

 
16,903

 
130,549

Provision for loan and lease losses
21,344

 
8,088

 
—

 
29,432

Non-interest income
176,250

 
13,950

 
(5,675
)
 
184,525

Non-interest expense
126,610

 
46,982

 
54,640

 
228,232

Income (loss) before income tax expense (benefit)
51,137

 
49,685

 
(43,412
)
 
57,410

 
 
 
 
 
 
 
 
Total assets
186,502

 
3,413,409

 
2,235,156

 
5,835,067

Total goodwill
87,145

 
216,125

 
—

 
303,270

Total deposits
2,412,986

 
746,003

 
1,271,998

 
4,430,987

 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2017
 
 
 
 
 
 
 
Interest income
$
13,845

 
$
52,231

 
$
42,027

 
$
108,103

Interest expense
503

 
2,723

 
11,647

 
14,873

Net interest income
13,342

 
49,508

 
30,380

 
93,230

Provision for loan losses
7,613

 
2,976

 
—

 
10,589

Non-interest income
165,707

 
4,685

 
1,780

 
172,172

Non-interest expense
132,984

 
24,520

 
42,159

 
199,663

Income (loss) before income tax expense (benefit)
38,452

 
26,697

 
(9,999
)
 
55,150

 
 
 
 
 
 
 
 
Total assets
185,521

 
1,343,968

 
3,698,843

 
5,228,332

Total goodwill
87,145

 
11,578

 
—

 
98,723

Total deposits
2,436,893

 
229,969

 
556,562

 
3,223,424

 
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2016
 
 
 
 
 
 
 
Interest income
$
9,711

 
$
38,321

 
$
33,364

 
$
81,396

Interest expense
181

 
1,331

 
2,579

 
4,091

Net interest income
9,530

 
36,990

 
30,785

 
77,305

Provision for loan losses
971

 
3,634

 
—

 
4,605

Non-interest income
95,261

 
4,280

 
1,229

 
100,770

Non-interest expense
77,411

 
23,001

 
34,236

 
134,648

Income (loss) before income tax expense (benefit)
26,409

 
14,635

 
(2,222
)
 
38,822

 
 
 
 
 
 
 
 
Total assets
87,311

 
946,420

 
2,972,688

 
4,006,419

Total goodwill
25,350

 
11,578

 
—

 
36,928

Total deposits
2,131,042

 
299,030

 
10

 
2,430,082
v3.10.0.1
PARENT COMPANY FINANCIAL STATEMENTS
 12 Months Ended
Sep. 30, 2018
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 years presented below.
 
CONDENSED STATEMENTS OF FINANCIAL CONDITION
 
September 30,
2018
 
2017
 
(Dollars in Thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
28,209

 
$
14,569

Investment securities held to maturity
411

 
310

Investment in subsidiaries
823,215

 
521,021

Other assets
124

 
96

Total assets
$
851,959

 
$
535,996

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

 
 
 
 
LIABILITIES
 

 
 

Long term debt
$
87,152

 
$
83,657

Other liabilities
17,081

 
17,843

Total liabilities
$
104,233

 
$
101,500

 
 
 
 
STOCKHOLDERS' EQUITY
 

 
 

Common stock
$
393

 
$
288

Additional paid-in capital
565,811

 
258,144

Retained earnings
213,048

 
167,164

Accumulated other comprehensive income (loss)
(33,111
)
 
9,166

Treasury stock, at cost
(1,989
)
 
(266
)
Total equity attributable to parent
744,152

 
434,496

Non-controlling interest
3,574

 
—

Total stockholders' equity
747,726

 
434,496

Total liabilities and stockholders' equity
$
851,959

 
$
535,996



CONDENSED STATEMENTS OF OPERATIONS
 
Years Ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Interest expense
$
5,061

 
$
4,959

 
$
1,022

Other expense
663

 
440

 
382

Total expense
5,724

 
5,399

 
1,404

 
 
 
 
 
 
Loss before income taxes and equity in undistributed net income of subsidiaries
(5,724
)
 
(5,399
)
 
(1,404
)
 
 
 
 
 
 
Income tax (benefit)
(1,504
)
 
(1,935
)
 
(519
)
 
 
 
 
 
 
Loss before equity in undistributed net income of subsidiaries
(4,220
)
 
(3,464
)
 
(885
)
 
 
 
 
 
 
Equity in undistributed net income of subsidiaries
55,840

 
48,381

 
34,105

 
 
 
 
 
 
Net income attributable to parent
$
51,620

 
$
44,917

 
$
33,220


 
CONDENSED STATEMENTS OF CASH FLOWS
For the Years Ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net Income attributable to parent
$
51,620

 
$
44,917

 
$
33,220

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation, amortization and accretion, net
143

 
136

 
(22
)
Equity in undistributed net income of subsidiaries
(55,840
)
 
(48,381
)
 
(34,105
)
Stock compensation
11,123

 
10,393

 
426

Other assets
232

 
7

 
(5
)
Accrued expenses and other liabilities
(860
)
 
16,636

 
541

Cash dividend received
45,315

 
—

 
—

Net cash provided by operating activities
51,733

 
23,708

 
55

 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITES
 
 
 
 
 
Held to Maturity:
 
 
 
 
 
Proceeds from maturities and principal repayments
8

 
—

 
—

Capital contributions to subsidiaries
(20,322
)
 
(82,820
)
 
(81,000
)
Net cash (used in) investing activities
(20,314
)
 
(82,820
)
 
(81,000
)
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Cash dividends paid
(5,736
)
 
(4,839
)
 
(4,389
)
Payment:
 
 
 
 
 
Short term debt
(11,642
)
 
—

 
—

Long term debt
(258
)
 
—

 
75,000

Debt issuance costs
—

 
—

 
(1,767
)
Purchase of shares by ESOP
1,606

 
1,174

 
—

Proceeds/(payment):
 
 
 
 
 
Contingent consideration - equity
—

 
24,142

 
—

Exercise of stock options & issuance of common stock
148

 
650

 
13,537

Issuance of restricted stock
4

 
12

 
—

Issuance of commons shares due to acquisitions
295,767

 
37,296

 
—

Cash acquired due to acquisitions
697

 
—

 
—

Net increase in investment in subsidiaries
(295,767
)
 
—

 
—

Shares repurchased for tax withholdings on stock compensation
(2,598
)
 
(470
)
 
—

Net cash provided by (used in) financing activities
(17,779
)
 
57,965

 
82,381

 
 
 
 
 
 
Net change in cash and cash equivalents
$
13,640

 
$
(1,147
)
 
$
1,436

 
 
 
 
 
 
CASH AND CASH EQUIVALENTS
 
 
 

 
 

Beginning of year
14,569

 
15,716

 
14,280

End of year
$
28,209

 
$
14,569

 
$
15,716



The extent to which the Company may pay cash dividends to stockholders will depend on the cash currently available at the Company, as well as the ability of the Bank to pay dividends to the Company.  For further discussion, see Note 13 herein.
v3.10.0.1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
 12 Months Ended
Sep. 30, 2018
Quarterly Financial Information Disclosure [Abstract]  
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED)

All share and per share data for all periods presented in the following table has been adjusted to reflect the 3-for-1 forward stock split with respect to the Company's common stock effected by the Company on October 4, 2018.
 
QUARTER ENDED
 
December 31
 
March 31
 
June 30
 
September 30
 
(Dollars in Thousands, Except Per Share Data)
Fiscal Year 2018
 
 
 
 
 
 
 
Interest and dividend income
$
30,857

 
$
33,371

 
$
34,104

 
$
60,202

Interest expense
4,661

 
5,966

 
5,693

 
11,665

Net interest income
26,196

 
27,405

 
28,411

 
48,537

Provision for loan and lease losses
1,068

 
18,343

 
5,315

 
4,706

Non-interest income
29,268

 
97,419

 
33,225

 
24,613

Net Income attributable to parent
4,670

 
31,436

 
6,792

 
8,722

Earnings per common share
 

 
 

 
 

 
 

Basic
$
0.15

 
$
1.07

 
$
0.22

 
$
0.24

Diluted
0.15

 
1.06

 
0.22

 
0.24

Dividend declared per share
0.04

 
0.04

 
0.04

 
0.05

 
 
 
 
 
 
 
 
Fiscal Year 2017
 

 
 

 
 

 
 

Interest and dividend income
$
22,575

 
$
27,718

 
$
28,861

 
$
28,949

Interest expense
2,742

 
3,752

 
3,918

 
4,461

Net interest income
19,833

 
23,966

 
24,943

 
24,488

Provision (recovery) for loan losses
843

 
8,649

 
1,240

 
(144
)
Non-interest income
19,349

 
92,170

 
30,820

 
29,833

Net Income attributable to parent
1,244

 
32,142

 
9,787

 
1,744

Earnings per common share
 

 
 

 
 

 
 

Basic
$
0.05

 
$
1.15

 
$
0.35

 
$
0.07

Diluted
0.05

 
1.14

 
0.35

 
0.07

Dividend declared per share
0.04

 
0.04

 
0.04

 
0.04

 
 
 
 
 
 
 
 
Fiscal Year 2016
 

 
 

 
 

 
 

Interest and dividend income
$
18,275

 
$
20,629

 
$
20,763

 
$
21,729

Interest expense
720

 
691

 
844

 
1,836

Net interest income
17,555

 
19,938

 
19,919

 
19,893

Provision for loan losses
786

 
1,173

 
2,098

 
548

Non-interest income
16,834

 
40,901

 
23,807

 
19,228

Net Income attributable to parent
4,058

 
14,283

 
8,873

 
6,006

Earnings per common share
 

 
 

 
 

 
 

Basic
$
0.16

 
$
0.57

 
$
0.35

 
$
0.23

Diluted
0.16

 
0.56

 
0.35

 
0.23

Dividend declared per share
0.04

 
0.04

 
0.04

 
0.04
v3.10.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS
 12 Months Ended
Sep. 30, 2018
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 years ended September 30, 2018 or 2017.
 
Securities Available for Sale and Held to Maturity.  Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  The Company’s Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality MBS and municipal bonds. The Company had no Level 3 securities at September 30, 2018, or 2017.
 
The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model‑based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology and the third‑party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third-party provider include but are not limited to pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third-party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.

The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2018 and 2017.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the Consolidated Statements of Financial Condition.
 
 
Fair Value At September 30, 2018
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
44,337

 
—

 
44,337

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
16,910

 
—

 
16,910

 
—

 
—

 
—

 
—

 
—

Non-bank qualified obligations of states and political subdivisions
1,109,885

 
—

 
1,109,885

 
—

 
153,546

 
—

 
153,546

 
—

Asset-backed securities
313,028

 
—

 
313,028

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
364,065

 
—

 
364,065

 
—

 
7,428

 
—

 
7,428

 
—

Total debt securities
1,848,225

 
—

 
1,848,225

 
—

 
160,974

 
—

 
160,974

 
—

Common equities and mutual funds
3,800

 
3,800

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,852,025

 
$
3,800

 
$
1,848,225

 
$
—

 
$
160,974

 
$
—

 
$
160,974

 
$
—


 
Fair Value At September 30, 2017
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
57,871

 
—

 
57,871

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,368

 
—

 
19,368

 
—

Non-bank qualified obligations of states and political subdivisions
950,829

 
—

 
950,829

 
—

 
432,361

 
—

 
432,361

 
—

Asset-backed securities
96,832

 
—

 
96,832

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
586,454

 
—

 
586,454

 
—

 
112,456

 
—

 
112,456

 
—

Total debt securities
1,691,986

 
—

 
1,691,986

 
—

 
564,185

 
—

 
564,185

 
—

Common equities and mutual funds
1,445

 
1,445

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,693,431

 
$
1,445

 
$
1,691,986

 
$
—

 
$
564,185

 
$
—

 
$
564,185

 
$
—



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.
 
The following table summarizes the assets of the Company that are measured at fair value in the Consolidated Statements of Financial Condition on a non-recurring basis as of September 30, 2018 and 2017.
 
 
Fair Value at September 30, 2018
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans and Leases, net
 
 
 
 
 
 
 
Commercial finance
$
4,825

 
$
—

 
$
—

 
$
4,825

Total National Lending
4,825

 
—

 
—

 
4,825

Total impaired loans and leases
4,825

 
—

 
—

 
4,825

Foreclosed Assets, net
31,638

 
—

 
—

 
31,638

Total
$
36,463

 
$
—

 
$
—

 
$
36,463


 
Fair Value At September 30, 2017
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans and Leases, net
 
 
 
 
 
 
 
Foreclosed Assets, net
292

 
—

 
—

 
292

Total
$
292

 
$
—

 
$
—

 
$
292



 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
September 30, 2018
 
Fair Value at
September 30, 2017
 
Valuation
Technique
 
Unobservable
Input
Impaired Loans and Leases, net
$
4,825

 
$
—

 
Market approach
 
Appraised values (1)
Foreclosed Assets, net
31,638

 
292

 
Market approach
 
Appraised values (1)

(1) The Company generally relies on external appraisers to develop this information.  Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.

The following tables disclose the Company’s estimated fair value amounts of its financial instruments at the dates provided.  It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of September 30, 2018 and 2017, as more fully described below.  The operations of the Company are managed from a going concern basis and not a liquidation basis.  As a result, the ultimate value realized for the financial instruments presented could be substantially different when actually recognized over time through the normal course of operations.  Additionally, a substantial portion of the Company’s inherent value is the Bank’s capitalization and franchise value.  Neither of these components have been given consideration in the presentation of fair values below.

The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2018 and 2017.

 
September 30, 2018
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
99,977

 
$
99,977

 
$
99,977

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,852,025

 
1,852,025

 
3,800

 
1,848,225

 
—

Securities held to maturity
172,154

 
160,974

 
—

 
160,974

 
—

Total securities
2,024,179

 
2,012,999

 
3,800

 
2,009,199

 
—

 
 
 
 
 
 
 
 
 
 
Loans held for sale
15,606

 
15,606

 
—

 
15,606

 
—

 
 
 
 
 
 
 
 
 
 
Loans and leases receivable:
 
 
 
 
 
 
 
 
 
Commercial finance
1,509,849

 
1,506,969

 
—

 
—

 
1,506,969

Consumer finance
335,361

 
342,931

 
—

 
—

 
342,931

Tax services
1,073

 
1,073

 
—

 
—

 
1,073

Total National Lending
1,846,283

 
1,850,973

 
—

 
—

 
1,850,973

Commercial and multi-family real estate
748,579

 
731,291

 
—

 
—

 
731,291

One to four family residential mortgage
223,482

 
220,697

 
—

 
—

 
220,697

Agricultural
60,498

 
58,849

 
—

 
—

 
58,849

Commercial operating
42,311

 
41,912

 
—

 
—

 
41,912

Consumer
23,836

 
24,033

 
—

 
—

 
24,033

Total Community Banking
1,098,706

 
1,076,782

 
—

 
—

 
1,076,782

Total loans and leases receivable
2,944,989

 
2,927,755

 
—

 
—

 
2,927,755

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
23,400

 
23,400

 
—

 
23,400

 
—

Accrued interest receivable
22,016

 
22,016

 
22,016

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
Non-interest bearing demand deposits
2,405,274

 
2,405,274

 
2,405,274

 
—

 
—

Interest bearing demand deposits, savings, and money markets
218,347

 
218,347

 
218,347

 
—

 
—

Certificates of deposits
276,180

 
273,800

 
—

 
273,800

 
—

Wholesale non-maturing deposits
94,384

 
94,384

 
94,384

 
—

 
—

Wholesale certificates of deposits
1,436,802

 
1,432,146

 
—

 
1,432,146

 
—

Total deposits
4,430,987

 
4,423,951

 
2,718,005

 
1,705,946

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
—

 
—

 
—

 
—

 
—

Federal funds purchased
422,000

 
422,000

 
422,000

 
—

 
—

Securities sold under agreements to repurchase
3,694

 
3,694

 
—

 
3,694

 
—

Capital leases
1,876

 
1,876

 
—

 
1,876

 
—

Trust preferred securities
13,661

 
13,866

 
—

 
13,866

 
—

Subordinated debentures
73,491

 
75,563

 
—

 
75,563

 
—

Accrued interest payable
7,794

 
7,794

 
7,794

 
—

 
—

 
September 30, 2017
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,267,586

 
$
1,267,586

 
$
1,267,586

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,693,431

 
1,693,431

 
1,445

 
1,691,986

 
—

Securities held to maturity
563,529

 
564,185

 
—

 
564,185

 
—

Total securities
2,256,960

 
2,257,616

 
1,445

 
2,256,171

 
—

 
 
 
 
 
 
 
 
 
 
Loans and leases receivable:
 

 
 

 
 

 
 

 
 

Commercial finance
255,308

 
255,813

 
—

 
—

 
255,813

Consumer finance
140,229

 
141,958

 
—

 
—

 
141,958

Tax services
192

 
192

 
—

 
—

 
192

Total National Lending
395,729

 
397,963

 
—

 
—

 
397,963

Commercial and multi-family real estate
585,510

 
576,330

 
—

 
—

 
576,330

One to four family residential mortgage
196,706

 
196,970

 
—

 
—

 
196,970

Agricultural
95,394

 
94,454

 
—

 
—

 
94,454

Commercial operating
30,718

 
30,682

 
—

 
—

 
30,682

Consumer
22,775

 
22,003

 
—

 
—

 
22,003

Total Community Banking
931,103

 
920,439

 
—

 
—

 
920,439

Total loans and leases receivable
1,326,832

 
1,318,402

 
—

 
—

 
1,318,402

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
61,123

 
61,123

 
—

 
61,123

 
—

Accrued interest receivable
19,380

 
19,380

 
19,380

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,454,057

 
2,454,057

 
2,454,057

 
—

 
—

Interest bearing demand deposits, savings, and money markets
169,557

 
169,557

 
169,557

 
—

 
—

Certificates of deposit
123,637

 
123,094

 
—

 
123,094

 
—

Wholesale non-maturing deposits
18,245

 
18,245

 
18,245

 
—

 
—

Wholesale certificates of deposits
457,928

 
457,509

 
—

 
457,509

 
—

Total deposits
3,223,424

 
3,222,462

 
2,641,859

 
580,603

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
415,000

 
415,003

 
—

 
415,003

 
—

Federal funds purchased
987,000

 
987,000

 
987,000

 
—

 
—

Securities sold under agreements to repurchase
2,472

 
2,472

 
—

 
2,472

 
—

Capital leases
1,938

 
1,938

 
—

 
1,938

 
—

Trust preferred
10,310

 
10,447

 
—

 
10,447

 
—

Subordinated debentures
73,347

 
76,500

 
—

 
76,500

 
—

Accrued interest payable
2,280

 
2,280

 
2,280

 
—

 
—



The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at September 30, 2018 and 2017.
 
CASH AND CASH EQUIVALENTS
 
The carrying amount of cash and short-term investments is assumed to approximate the fair value.
 
SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY
 
Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair values for investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities.

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

LOANS AND LEASES RECEIVABLE, NET
 
The fair value of loans and leases is estimated using a historical or replacement cost basis concept (i.e., an entrance price concept).  The fair value of loans and leases was estimated by discounting the future cash flows using the current rates at which similar loans and leases would be made to borrowers and for similar remaining maturities.  When using the discounting method to determine fair value, loans and leases were grouped by homogeneous loans and leases with similar terms and conditions and discounted at a target rate at which similar loans and leases would be made to borrowers at September 30, 2018 and 2017.  In addition, when computing the estimated fair value for all loans and leases, allowances for loan and lease losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component.
 
FHLB STOCK
 
The fair value of such stock is assumed to approximate book value since the Company is generally able to redeem this stock at par value.
 
ACCRUED INTEREST RECEIVABLE
 
The carrying amount of accrued interest receivable is assumed to approximate the fair value.
 
DEPOSITS
 
The carrying values of non-interest-bearing checking deposits, interest-bearing checking deposits, savings, money markets, and wholesale non-maturing deposits are assumed to approximate fair value, since such deposits are immediately withdrawable without penalty.  The fair value of time certificates of deposit and wholesale certificates of deposit were estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities.
 
In accordance with ASC 825, Financial Instruments, no value has been assigned to the Company’s long-term relationships with its deposit customers (core value of deposits intangible) since such intangible is not a financial instrument as defined under ASC 825.
 
ADVANCES FROM FHLB
 
The fair value of such advances was estimated by discounting the expected future cash flows using current interest rates for advances with similar terms and remaining maturities.
 
FEDERAL FUNDS PURCHASED
 
The carrying amount of federal funds purchased is assumed to approximate the fair value.
 
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE, CAPITAL LEASES, TRUST PREFERRED SECURITIES AND SUBORDINATED DEBENTURES
 
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.
 
ACCRUED INTEREST PAYABLE
 
The carrying amount of accrued interest payable is assumed to approximate the fair value.
 
LIMITATIONS
 
Fair value estimates are made at a specific point in time, 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.
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS
 12 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS
 
The Company had a total of $303.3 million of goodwill as of September 30, 2018. The recorded goodwill was due to two separate business combinations during fiscal 2015, two separate business combinations during the first quarter of fiscal 2017, and one business combination during the fourth quarter of fiscal 2018. The fiscal 2015 business combinations included $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Refund Advantage on September 8, 2015. The fiscal 2017 business combinations included $30.4 million of goodwill in connection with the purchase of substantially all of the assets of EPS on November 1, 2016, and $31.4 million of goodwill in connection with the purchase of substantially all of the assets and specified liabilities of SCS on December 14, 2016. The fiscal 2018 business combination included $204.5 million of goodwill in connection with the Crestmark Acquisition consummated on August 1, 2018. The goodwill associated with the AFS/IBEX, Refund Advantage, EPS, and SCS transactions are deductible for tax purposes. The goodwill associated with the Crestmark Acquisition is not deductible for tax purposes.
 
The carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2018 and 2017 are as follows:
 
 
September 30,
 
2018
 
2017
 
(Dollars in Thousands)
Goodwill
 
Beginning balance
$
98,723

 
$
36,928

Acquisitions during the period
204,547

 
61,795

Write-offs during the period
—

 
—

Ending balance
$
303,270

 
$
98,723




The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2018. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed.
 
 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

Acquisitions during the period
3,634

 
—

 
24,278

 
449

 
28,361

Amortization during the period
(698
)
 
(485
)
 
(7,530
)
 
(928
)
 
(9,641
)
Write-offs during the period
—

 
—

 
—

 
(179
)
 
(179
)
Balance as of September 30, 2018
$
12,987

 
$
1,297

 
$
48,455

 
$
7,980

 
$
70,719

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
14,624

 
$
2,480

 
$
82,088

 
$
10,951

 
$
110,143

Accumulated amortization
$
(1,637
)
 
$
(1,183
)
 
$
(23,385
)
 
$
(2,263
)
 
$
(28,468
)
Accumulated impairment


 


 
$
(10,248
)
 
$
(708
)
 
$
(10,956
)
Balance as of September 30, 2018
$
12,987

 
$
1,297

 
$
48,455

 
$
7,980

 
$
70,719

(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.


 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

Acquisitions during the period
5,500

 
2,180

 
31,770

 
6,947

 
46,397

Amortization during the period
(598
)
 
(525
)
 
(10,405
)
 
(835
)
 
(12,363
)
Write-offs during the period
—

 
—

 
(10,248
)
 
(529
)
 
(10,777
)
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
10,990

 
$
2,480

 
$
57,810

 
$
10,502

 
$
81,782

Accumulated amortization
(939
)
 
(698
)
 
(15,855
)
 
(1,335
)
 
(18,827
)
Accumulated impairment
—

 
—

 
(10,248
)
 
(529
)
 
(10,777
)
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178


(1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The Company recorded an immaterial impairment charge during the fourth quarter of fiscal 2018 and a $10.2 million intangible impairment charge during the fourth quarter of fiscal 2017 related to the non-renewal of the H&R Block relationship.

The weighted-average amortization period, by major intangible asset class and in total, for the acquisition during fiscal year 2018 were as follows:
 
Weighted Average Amortization Period
Intangible
Crestmark
Trademark
10.0
Customer Relationships
10.0
Technology/Other
3.0
Total
9.9


The anticipated future amortization of intangibles is as follows:
 
Year ended
 
(Dollars in Thousands)
2019
$
17,733

2020
11,017

2021
8,559

2022
6,404

2023
5,077

Thereafter
21,929

Total anticipated intangible amortization
$
70,719
v3.10.0.1
SUBSEQUENT EVENTS
 12 Months Ended
Sep. 30, 2018
Subsequent Events [Abstract]  
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS

On October 5, 2018, Meta common stock began trading on a split-adjusted basis as a result of the 3-for-1 forward stock split with respect to Meta's common stock, which was effected on October 4, 2018 as a stock dividend. As a result of the stock split, the number of issued and outstanding shares of Meta common stock increased to 39.2 million shares, which includes shares issued in the Crestmark Acquisition.

On October 30, 2018, the Company announced that its Board of Directors appointed Brad Hanson, President of Meta Financial Group, MetaBank and Meta Payment Systems, to the additional role of Chief Executive Officer, effective immediately. Hanson will also remain on the Meta Board. Hanson replaces J. Tyler Haahr, who stepped down as Chief Executive Officer. It is expected that Haahr will remain Chairman of the Board and an employee through the Company’s Annual Meeting of Stockholders expected to be held in January 2019. Frederick V. Moore, currently Lead Director and Vice Chairman, has been appointed to serve as Chairman effective following the date of the Annual Meeting.
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)
 12 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
PRINCIPLES OF CONSOLIDATION
PRINCIPLES OF CONSOLIDATION
The Consolidated Financial Statements include the accounts of Meta Financial Group, Inc. (the “Company”), a unitary savings and loan holding company located in Sioux Falls, South Dakota, and its wholly-owned subsidiaries which include MetaBank (the “Bank”), a federally chartered savings bank whose primary federal regulator is the Office of the Comptroller of the Currency, and Meta Capital, LLC, a wholly owned service corporation subsidiary of MetaBank which invests in 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.  The Trust is not included in the Consolidated Financial Statements of the Company. Through the Crestmark Acquisition, the Company acquired floating rate capital securities due to Crestmark Capital Trust I, a 100%-owned nonconsolidated subsidiary of the Company. See Note 2. Acquisitions for additional disclosure on the Crestmark Acquisition. 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. If an entity is not a VIE, the Company also evaluates arrangements in which there is a general partner or managing member to determine whether consolidation is appropriate.
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION
The primary source 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 and community banking loans.  The Company accepts deposits from customers in the normal course of business through its community bank division and 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 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
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 $16.5 million at September 30, 2018, and $1.5 million at September 30, 2017.  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, 2018, the Company had $16.0 million interest-bearing deposits held at the FHLB and $4.2 million in interest-bearing deposits held at the FRB.  At September 30, 2018, the Company had no federal funds sold.  The Company does not believe these instruments carry a significant risk of loss, but cannot provide assurances that no losses could occur if these institutions were to become insolvent.
SECURITIES
SECURITIES
GAAP requires that, at acquisition, an enterprise classify debt securities into one of three categories: Available for Sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the Consolidated Statements of Financial Condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (loss) (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. Meta did not hold trading securities at September 30, 2018 or 2017.

The Company classifies the majority of its securities as AFS.  AFS securities are those the Company may decide to sell if needed for liquidity, asset/liability management or other reasons. Prior to June 30, 2013, the Basel III Accord was finalized and clarified that unrealized losses and gains on securities will not affect regulatory capital for those companies that opt out of the requirement, which the Company has done.
 
Gains and losses on the sale of securities are determined using the specific identification method based on amortized cost and are reflected in results of operations at the time of sale.  Interest and dividend income, adjusted by amortization of purchase premium or discount over the estimated life of the security using the level yield method, is included in income as earned.

The fair values of securities available for sale are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third-party provider that utilizes several sources for valuing fixed-income securities.  Sources utilized by the third-party provider include pricing models that vary based on asset class and include available trade, bid, and other market information.  This methodology includes broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs.

Securities Impairment
Management continually monitors the investment securities portfolio for impairment on a security-by-security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary.  This process involves the consideration of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not the Company will be required to sell the security before the recovery of its amortized cost, which, in some cases, may extend to maturity.  To the extent the Company determines that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.  If the Company intends to sell a security or it is more likely than not that the Company would be required to sell a security before the recovery of its amortized cost, the Company recognizes an other-than-temporary impairment for the difference between amortized cost and fair value.  If the Company does not expect to recover the amortized cost basis, does not plan to sell the security and if it is not more likely than not that the Company would be required to sell the security before the recovery of its amortized cost, the recognition of the other-than-temporary impairment is bifurcated.  For those securities, the Company separates the total impairment into a credit loss component recognized in net income, and the amount of the loss related to other factors is recognized in other comprehensive income, net of taxes.
 
The amount of the credit loss component of a debt security impairment is estimated as the difference between amortized cost and the present value of the expected cash flows of the security.  The present value is determined using the best estimate of cash flows discounted at the effective interest rate implicit to the security at the date of purchase or the current yield to accrete an asset-backed or floating rate security.  In fiscal 2018, 2017 and 2016, there was no other-than-temporary impairment recorded.
LOANS RECEIVABLE
LOANS AND LEASES RECEIVABLE

LOANS RECEIVABLE
Loans receivable that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off are reported at their outstanding principal balances 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 Banking 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 attempts to work with borrowers when necessary to extend or modify loan terms to better align with their current ability to repay.  Extensions and modifications to loans are made in accordance with internal policies and guidelines which conform to regulatory guidance.  Each occurrence is unique to the borrower and is evaluated separately.  In a situation where an economic concession has been granted to a borrower that is experiencing financial difficulty, the Company identifies and reports that loan as a troubled debt restructuring (“TDR”).  Management considers regulatory guidelines when restructuring loans to ensure that prudent lending practices are followed.  As such, qualification criteria and payment terms consider the borrower’s current and prospective ability to comply with the modified terms of the loan.  Additionally, the Company structures loan modifications with the intent of strengthening repayment prospects.

The Company considers whether a borrower is experiencing financial difficulties, as well as whether a concession has been granted to a borrower determined to be troubled, when determining whether a modification meets the criteria of being a TDR.  For such purposes, evidence which may indicate that a borrower is troubled includes, among other factors, the borrower’s default on debt, the borrower’s declaration of bankruptcy or preparation for the declaration of bankruptcy, the borrower’s forecast that entity-specific cash flows will be insufficient to service the related debt, or the borrower’s inability to obtain funds from sources other than existing creditors at an effective interest rate equal to the current market interest rate for similar debt for a non-troubled debtor.  If a borrower is determined to be troubled based on such factors or similar evidence, a concession will be deemed to have been granted if a modification of the terms of the debt occurred that management would not otherwise consider.  Such concessions may include, among other modifications, a reduction of the stated interest for the remaining original life of the debt, an extension of the maturity date at a stated interest rate lower than the current market rate for new debt with similar risk, a reduction of accrued interest, or a reduction of the face amount or maturity amount of the debt.

Loans that are reported as TDRs apply the identical criteria in the determination of whether the loan should be accruing or not accruing.  The event of classifying the loan as a TDR due to a modification of terms may be independent from the determination of accruing interest on a loan.
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
MORTGAGE SERVICING AND TRANSFERS OF FINANCIAL ASSETS
The Company, from time to time, sells loan participations, generally without recourse.  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, 2018 and 2017, the Bank was servicing loans for others with aggregate unpaid principal balances of $134.0 million and $21.8 million, respectively.
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 Community Bank and Crestmark division 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 2018 and 2017 are historical loss rates, the look back period (“LBP”) and the loss emergence period (“LEP”).

•
The historical loss experience is determined by portfolio segment and is based on the actual loss history of the Company over the past seven years.  For the individual classified loans, historic charge-off rates for the Company’s classified loan population are utilized.

•
A 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.

National Lending portfolios, outside of loans and leases attributable to the Crestmark division, 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 written off after a loan becomes past due greater than 210 days for commercial 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 3. Loans and Leases Receivable, Net for further information on the ALLL.
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 non-interest expense and a valuation allowance is recorded for the asset. Operating expenses of properties are also recorded in non-interest expense.
INCOME TAXES
INCOME TAXES
The Company records income tax expense based on the amount of taxes due on its tax return plus deferred taxes computed based on the expected future tax consequences of temporary differences between the carrying amounts and tax bases of assets and liabilities, using enacted tax rates.  Deferred tax assets are reduced by a valuation allowance when, in the opinion of management, it is more likely than not that some portion or all of the deferred tax assets will not be realized.

In accordance with ASC 740, Income Taxes, the Company recognizes a tax position as a benefit only if it is more likely than not that the tax position would be sustained in a tax examination, with a tax examination being presumed to occur.  The amount recognized is the largest amount of tax benefit that is greater than 50% likely of being realized upon examination.  For tax positions not meeting the more likely than not test, no tax benefit is recorded.  The Company recognizes interest and/or penalties related to income tax matters in income tax expense.
PREMISES, FURNITURE, AND EQUIPMENT
PREMISES, FURNITURE AND EQUIPMENT
Land is carried at cost.  Buildings, furniture, fixtures, leasehold improvements and equipment are carried at cost, less accumulated depreciation and amortization.  Capital leases, where 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 range from 10 to 40 years for buildings, and 2 to 15 years for leasehold improvements, and for furniture, fixtures and equipment. The Company amortizes capitalized leased assets on a straight-line basis over the lives of the respective leases. Assets are reviewed for impairment when events indicate the carrying amount may not be recoverable.
BANK-OWNED LIFE INSURANCE
BANK-OWNED LIFE INSURANCE
Bank-owned life insurance represents the cash surrender value of investments in life insurance contracts.  Earnings on the contracts are based on the earnings on the cash surrender value, less mortality costs.
EMPLOYEE STOCK OWNERSHIP PLAN (ESOP)
EMPLOYEE STOCK OWNERSHIP PLAN (“ESOP”)
The cost of shares issued to the ESOP, but not yet allocated to participants, are presented in the Consolidated Statements of Financial Condition as a reduction of stockholders’ equity.  Compensation expense is recorded based on the market price of the shares as they are committed to be released for allocation to participant accounts.  The difference between the market price and the cost of shares committed to be released is recorded as an adjustment to additional paid-in capital.  Dividends on allocated ESOP shares are recorded as a reduction of retained earnings.  Dividends on unallocated shares are used to reduce the accrued interest and principal amount of the ESOP’s loan payable to the Company.  At September 30, 2018 and 2017, all shares in the ESOP were allocated.
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
FINANCIAL INSTRUMENTS WITH OFF-BALANCE SHEET RISK
The Company, in the normal course of business, makes commitments to make loans which are not reflected in the Consolidated Financial Statements. The reserve for these unfunded commitments is included within Other Liabilities on the Consolidated Statements of Financial Condition.

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. If the implied fair value of goodwill is lower than its carrying amount, goodwill impairment is indicated and goodwill is written down to its implied fair value. Subsequent increases in goodwill are not recognized in the Consolidated Financial Statements. No goodwill impairment was recognized during the years ended September 30, 2018, 2017 or 2016. See Note 20. Goodwill and Intangible Assets for further information on Goodwill.
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 20. Goodwill and Intangible Assets for further information on Intangible Assets.
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 9. Short Term Debt and Long Term Debt for further information on Securities Sold under Agreements to Repurchase.
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 Payments segment is recognized as services are performed and service charges are earned in accordance with the terms of the various programs. The Company is adopting Accounting Standards Update 2014-09, Revenue from Contracts with Customers, and related amendments beginning October 1, 2018. For further discussion on revenue recognition, see ASU 2014-09 below in the New Accounting Pronouncements in this footnote.
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. The Company effected a 3-for-1 forward stock split of its common stock on October 4, 2018. All EPS amounts have been retrospectively adjusted to reflect this stock split. See Note 5. Earnings per Common Share for further information on EPS.
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 available for sale, net of reclassification adjustments and tax effects.  Accumulated other comprehensive income (loss) is recognized as a separate component of stockholders’ equity.
STOCK COMPENSATION
STOCK COMPENSATION
Compensation expense for share-based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested restricted shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date. See Note 11. Share-Based Compensation Plans for further information on Stock Compensation.
NEW ACCOUNTING PRONOUNCEMENTS
NEW ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No. 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments
This ASU requires organizations to replace the incurred loss impairment methodology with a methodology reflecting expected credit losses with considerations for a broader range of reasonable and supportable information to substantiate credit loss estimates. This ASU is effective for annual reporting periods beginning after December 15, 2019. The Company has been analyzing its data and has taken measures to ensure its systems capture data applicable to the standard. In addition, the Company is undergoing a readiness assessment with an external consultant that began in the first quarter of fiscal 2018. The Company has chosen a vendor for a software solution and has begun the implementation of the software.

ASU No. 2016-04, Extinguishment of liabilities (Subtopic 405-20): Recognition of Breakage for Certain Prepaid Stored-Value Products
This ASU requires organizations to derecognize the deposit liabilities for unredeemed prepaid stored-value products (i.e. - breakage) consistently with breakage guidance in Topic 606, Revenue from Contracts with Customers. This ASU is effective for annual reporting periods beginning after December 15, 2017, and the Company expects the impact to the Consolidated Financial Statements to be minimal.
 
ASU No. 2016-02, Leases (Topic 842): Amendments to the Leases Analysis
ASU No. 2018-10, Codification Improvements to Topic 842
ASU No. 2018-11, Targeted Improvements

For lessees, Topic 842 requires leases to be recognized on the balance sheet, along with disclosure of key information about leasing arrangements. Topic 842 was subsequently amended by ASU 2018-01, 2018-10 and 2018-11. The new standard establishes a right-of-use (ROU) model that requires a lessee to recognize a ROU asset and lease liability on the balance sheet for all leases with a term longer than 12 months. Leases will be classified as finance or operating, with classification affecting the pattern and classification expense recognition in the income statement.

For lessors, Topic 842 requires lessors to classify leases as sales-type, direct financing or operating leases. A lease is a sales-type lease if any one of five criteria are met, each of which indicate that the lease, in effect, transfers control of the underlying asset to the lessee. If none of those five criteria are met, but two additional criteria are both met, indicating the lessor has transferred substantially all the risks and benefits of the underlying asset to the lessee and a third party, the lease is a direct financing lease. All leases that are not sales-type or direct financing leases are operating leases.

The new standard is effective for the Company on October 1, 2019, with early adoption permitted. A modified retrospective transition approach is required, applying the new standard to all leases existing at the date of initial application. An entity may choose to use either (1) the new standard's effective date or (2) the beginning of the earliest comparative period presented in the financial statements as its date of initial application. The Company expects to adopt the new standard on October 1, 2019 using the effective date as its date of initial application. Consequently, financial information will not be updated and the disclosures required under the new standard will not be provided for dates and periods before October 1, 2019.

The new standard provides several optional practical expedients in transition. The Company expects to elect the ‘package of practical expedients,’ which permits the Company not to reassess under the new standard the Company's prior conclusions about lease identification, lease classification and initial direct costs. The Company does not expect to elect the use-of-hindsight or the practical expedient pertaining to land easements; the latter not being applicable to the Company. As a lessee, the Company expects this new standard to have a material effect on its financial statements. While the Company continues to assess all of the effects of adoption, the Company currently believes the most significant effects relate to (1) the recognition of ROU assets and lease liabilities on the balance sheet for the Company's office and equipment operating leases; (2) providing significant new disclosures about the Company's leasing activities. As a lessor, the Company is still in the process of assessing the impact of the standard on its existing lease portfolio. The Company does not expect a significant change in its leasing activities between now and adoption.

The new standard also provides practical expedients for a lessee’s and lessor’s ongoing accounting. The Company currently expects to elect the short-term lease recognition exemption for all leases that qualify. This means, for those leases that qualify, the Company (as lessee) would not recognize ROU assets or lease liabilities. The Company (as lessee and lessor) also currently expects to elect the practical expedient to not separate lease and non-lease components for all of its leases that qualify.

ASU No. 2014-9, Revenue Recognition – Revenue from Contracts with Customers (Topic 606) 
In May 2014, the FASB issued a new standard related to revenue recognition. Under the standard, revenue is recognized when a customer obtains control of promised goods or services in an amount that reflects the consideration the entity expects to receive in exchange for those goods or services. In addition, the standard requires disclosure of the nature, amount, timing, and uncertainty of revenue and cash flows arising from contracts with customers. The Company adopted the standard effective October 1, 2018, using the modified retrospective approach with a cumulative effect adjustment included in Retained Earnings upon the date of adoption. Results for prior period amounts will not be adjusted and will continue to be reported in accordance with the Company’s historical accounting policies. The Company implemented internal controls and key system functionality to enable the preparation of financial information on adoption.
The most significant impact of the standard relates to the Company's accounting for revenues of prepaid cards in its MPS division, specifically, breakage on unregistered, unused cardholder balances. For such balances, the Company recognizes breakage revenue predominantly after the month of the card balance expiration rather than ratably over the life of the prepaid card. The Company performed an analysis on such revenues and has determined an approximate impact to Retained Earnings of $2.0 million in additional earned revenue upon adoption at October 1, 2018. All other revenue streams remain substantially unchanged.

ASU 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments
This ASU addresses eight classification issues related to the statement of cash flows including; debt prepayment or debt extinguishment costs, settlement of zero-coupon bonds, contingent consideration payments made after a business combination, proceeds from the settlement of insurance claims, proceeds from the settlement of corporate-owned life insurance policies, including bank-owned life insurance policies, distributions received from equity method investees, beneficial interests in securitization transactions, and separately identifiable cash flows and application of the predominance principle. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2017, and the Company is currently assessing the potential impact to the Consolidated Financial Statements.

ASU 2017-08, Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities
This ASU requires entities to shorten the amortization period for certain callable debt securities held at a premium. Specifically, the amendments in this update require the premium to be amortized to the earliest call date. The amendments do not require an accounting change for securities held at a discount; the discount continues to be amortized to maturity. The amendments in this update are effective for fiscal years, and interim periods within those fiscal years, beginning after December 15, 2018, and is not expected to have an impact on the Consolidated Financial Statements.

ASU 2017-12, Derivatives and Hedging (Topic 815): Targeted Improvements to Accounting for Hedging Activities
This ASU targets improving the accounting treatment for hedging activities and provides more flexibility in defining what can be hedged, less earnings volatility due to ineffective hedges, and less arduous documentation requirements. The ASU also offers the ability to reclassify prepayable debt securities from HTM to AFS and subsequently sell the securities, as long as the securities are eligible to be hedged. This update is effective for annual periods and interim periods in fiscal years beginning after December 15, 2018, with early adoption permitted in any interim period or fiscal year before the effective date. The Company early adopted this ASU as of October 1, 2017. The Company reclassified certain prepayable debt securities from HTM to AFS during the first quarter of fiscal year 2018. See Note 6. Securities for additional information on the securities reclassified.

ASU 2016-01, Financial Instruments - Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Liabilities
ASU 2018-03, Technical Corrections and Improvements to Financial Instruments - Overall (Subtopic 825-10)
These ASUs make revisions to seven areas of Subtopic 825-10, including that equity investments will be required to be measured at fair value with changes in fair value being recognized in net income, simplifying the impairment assessment for equity investments without readily determinable fair value, eliminating the requirement for public business entities to disclose the method(s) and significant assumptions used to estimate fair value for financial instruments measured at amortized cost, requiring public business entities to use exit price notions when measuring fair value of financial instruments, requiring separate presentation in other comprehensive income of the portion of total change in fair value of a liability resulting from a change in the instrument specific credit risk, requiring separate presentation of financial assets and liabilities by measurement category and form of financial asset, and clarifying that an entity should evaluate the need for a valuation allowance on a deferred tax asset related to AFS securities in combination with the entity’s other deferred tax assets. The improvements become effective in fiscal years beginning after December 15, 2017. The Company does not expect these improvements to have a material impact on its Consolidated Financial Statements.

ASU 2016-18, Statement of Cash Flows (Topic 230): Restricted Cash
This ASU addresses the existing diversity in classifying and presenting changes in restricted cash on the statements of cash flows. The amendments in this ASU require that the statements of cash flows explain the change during the period of total cash, cash equivalents, and amounts generally described as restricted cash or restricted cash equivalents. This ASU is effective for fiscal years beginning after December 15, 2017 and is not expected to have a material impact to the Company.

ASU 2017-01, Clarifying the Definition of a Business
This ASU amends Topic 805 by providing a screen to determine when a set of assets and activities is not a business. The screen reduces the number of transactions that need to be further evaluated. The amendments in this ASU provide a framework to assist entities in evaluating whether both an input and substantive process are present and narrows the definition of “output” so the term is consistent with how outputs are described in Topic 606. The definition of a business affects many areas of accounting including, acquisitions, disposals, goodwill and consolidation. This ASU becomes effective for fiscal years beginning after December 15, 2017 and are applied prospectively. This ASU is not expected to materially impact the Company.

ASU 2017-04, Intangibles - Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment
This ASU amends Topic 350 for entities performing the two-step test to determine the amount, if any, of goodwill impairment. Under this ASU, the quantitative impairment analysis of goodwill is now only a one step test where the amount of impairment, if any, is equal to the excess of the reporting unit carrying amount over the reporting unit fair value. This ASU does not amend Topic 350 for entities performing a qualitative assessment of goodwill. The Company will early adopt this ASU beginning October 1, 2018 and will apply the guidance within, as necessary, on a prospective basis. As the Company performs a qualitative assessment over goodwill, the adoption of this ASU is not expected to have a material impact to the Company.

ASU 2017-05, Other Income - Gains and Losses from the Derecognition of Nonfinancial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Nonfinancial Assets
This ASU clarifies the scope of nonfinancial asset guidance in Subtopic 610-20 and provides guidance on the accounting for partial sales of nonfinancial assets within the scope of Subtopic 610-20. The amendments within this ASU are effective for annual reporting periods beginning after December 15, 2017. The amendments in this ASU are more impactful to the real estate, power and utilities, and alternative energy industries and is not expected to have 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
This ASU allows a reclassification from accumulated other comprehensive income to retained earnings for stranded tax effects resulting from the Tax Act. The reclassification is not required but is an accounting policy election that must be disclosed during the year of adoption. This ASU will be effective for fiscal years beginning after December 15, 2018 with earlier adoption permitted. At this time, the Company does not expect to elect the reclassification option.

ASU 2018-07, Compensation - Stock Compensation (Topic 718): Improvements to Nonemployee Share-Based Payment Accounting
This ASU expands the scope of Topic 718 to include share-based payment transactions for acquiring goods or services from nonemployees. Key improvements from this ASU include clarifying the measurement date to the grant date and eliminating the requirement to reassess classification of such awards upon vesting. Any share-based awards to nonemployees classified as a liability that are not settled prior to adoption and any equity classified awards for which a measurement date has not been established will require remeasurement through a cumulative-effect adjustment to retained earnings as of the beginning of the year of adoption. Upon transition, nonemployee awards are required to be measured at fair value as of the adoption date and must not remeasure assets that are completed. The Company will early adopt this ASU beginning October 1, 2018. This ASU is not expected to materially impact the Company's Consolidated Financial Statements.

ASU 2018-09, Codification Improvements
This ASU represents changes in various Subtopics to clarify, correct errors, or make minor improvements. The amendments are not expected to have a significant effect on current accounting practice. Subtopics impacted by this ASU that are relevant to the Company include Subtopic 220-10 Income Statement - Reporting Comprehensive Income-Overall, Subtopic 718-740 Compensation - Stock Compensation-Income Taxes, Subtopic 805-740 Business Combinations - Income Taxes, and Subtopic 820-10 Fair Value Measurement-Overall. Many of the amendments within this ASU do not require transition and are effective upon issuance. However, some are not effective until fiscal years beginning after December 15, 2018. The amendments within this ASU are not expected to materially impact the Company's Consolidated Financial Statements.    

ASU 2018-13, Fair Value Measurement (Topic 820): Disclosure Framework - Changes to the Disclosure Requirements for Fair Value Measurement
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 is currently in the process of reviewing this ASU to determine whether the modifications within will be adopted prior to the effective date. Although this ASU has a significant impact to the Company’s fair value disclosures, no additional impact to the Consolidated Financial Statements is expected.
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Tables)
 12 Months Ended
Sep. 30, 2018
Accounting Policies [Abstract]  
Schedule of Summarized Financial Information of Variable Interest Entities
The summarized financial information for the Company’s consolidated VIEs consisted of the following:
 
September 30, 2018
 
(Dollars in Thousands)
Cash and cash equivalents
$
867

Loans and leases receivable
131,197

Allowance for loan and lease losses
(145
)
Accrued interest receivable
887

Rental equipment
99

Foreclosed real estate and repossessed assets
1,626

Other assets
3,247

Total assets
137,778

Accrued expenses and other liabilities
2,386

Non-controlling interest
3,574

Net assets less non-controlling interest
131,818
v3.10.0.1
ACQUISITIONS (Tables)
 12 Months Ended
Sep. 30, 2018
Crestmark Bancorp, Inc. [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The following table represents the approximate fair value of the assets acquired and liabilities assumed of Crestmark on the Consolidated Statements of Financial Condition as of August 1, 2018:

 
As of August 1, 2018
 
(Dollars in Thousands)
Fair value of consideration paid

Cash paid
$
6

Stock issued
295,767

Total consideration paid
295,773

 
 
Fair value of assets acquired
 
Cash and cash equivalents
58,858

Investment & MBS securities
25,349

Loan and lease receivables held for sale
17,494

Loan and lease receivables held for investment
1,046,010

Federal Home Loan Bank stock, at cost
33

Accrued interest receivable
5,381

Premises, furniture, and equipment
18,458

Rental equipment
98,977

Foreclosed real estate and repossessed assets
1,209

Intangible assets
28,253

Other assets
22,170

Total assets
1,322,192

Fair value of liabilities assumed
 
Time certificates of deposits
295,590

Wholesale certificates of deposits
825,076

Total deposits
1,120,666

Short-term debt
11,642

Long-term debt
3,609

Accrued interest payable
3,581

Accrued expenses and other liabilities
88,301

Total liabilities assumed
1,227,799

Fair value of non-controlling interest assumed
 
Non-controlling interest
3,167

Total non-controlling interest
3,167

Fair value of net assets acquired
91,226

Goodwill resulting from acquisition
204,547
Pro Forma Information
The following financial information presents the Company's results as if the Crestmark Acquisition on August 1, 2018 had occurred on October 1, 2016:

 
Twelve Months Ended
 
September 30,
(Dollars in Thousands Except Share and Per Share Data)
2018
 
2017
 
 
 
 
Net interest income
$
206,822

 
$
181,184

Net income attributable to parent
74,640

 
64,390

Basic earnings per share
1.91

 
1.71

Diluted earnings per share
1.91

 
1.70
EPS Financial, LLC [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The following table represents the approximate fair value of assets acquired and liabilities assumed of EPS on the Consolidated Statements of Financial Condition as of November 1, 2016:
 
 
As of November 1, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
21,877

Stock issued
26,507

Total consideration paid
48,384

 
 

Fair value of assets acquired
 
Intangible assets
17,930

Other assets
79

Total assets
18,009

Fair value of net assets acquired
18,009

Goodwill resulting from acquisition
$
30,375
Specialty Consumer Services [Member]  
Business Acquisition [Line Items]  
Schedule of Business Acquisitions, by Acquisition
The following table represents the approximate fair value of assets acquired from and liabilities recorded of SCS on the Consolidated Statements of Financial Condition as of December 14, 2016.
 
As of December 14, 2016
 
(Dollars in Thousands)
Fair value of consideration paid
 
Cash
$
7,548

Stock issued
10,789

Paid Consideration
18,337

Contingent consideration - cash
17,252

Contingent consideration - equity
24,142

Contingent consideration payable
41,394

    Total consideration paid
59,731

 
 

Fair value of assets acquired
 

Intangible assets
28,310

Other assets
2

Total assets
28,312

Fair value of net assets acquired
28,312

Goodwill resulting from acquisition
$
31,419
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET (Tables)
 12 Months Ended
Sep. 30, 2018
Loans and Leases Receivable Disclosure [Abstract]  
Year-end Loans Receivable
Year-end loans and leases receivable were as follows:
 
September 30, 2018
 
September 30, 2017
 
(Dollars in Thousands)
National Lending
 
 
 
Commercial finance
$
1,509,849

 
$
255,308

Consumer finance
335,361

 
140,229

Tax services
1,073

 
192

Total National Lending
1,846,283

 
395,729

Community Banking
 
 
 
Commercial and multi-family real estate
748,579

 
585,510

1-4 family real estate
223,482

 
196,706

Agricultural
60,498

 
95,394

Commercial operating
42,311

 
30,718

Consumer
23,836

 
22,775

Total Community Banking
1,098,706

 
931,103

Total gross loans and leases receivable
2,944,989

 
1,326,832

 
 
 
 
Allowance for loan and lease losses
(13,040
)
 
(7,534
)
Net deferred loan origination fees
(250
)
 
(1,461
)
Total loans and leases receivable, net
$
2,931,699

 
$
1,317,837
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:
 
Year ended September 30,
2018

 
2017

 
2016

 
(Dollars in Thousands)
Beginning balance
$
7,534

 
$
5,635

 
$
6,255

Provision for loan and lease losses
29,433

 
10,589

 
4,605

Recoveries
2,037

 
307

 
147

Charge offs
(25,964
)
 
(8,997
)
 
(5,372
)
Ending balance
$
13,040

 
$
7,534

 
$
5,635


Allowance for loan and lease losses and recorded investment in loans and leases at September 30, 2018 and 2017 were as follows:
 
Allowance for loan and lease losses:
Beginning balance
 
Provision (recovery) for loan and lease losses
 
Charge offs
 
Recoveries
 
Ending balance
Year Ended September 30, 2018
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
800

 
$
1,976

 
$
(2,643
)
 
$
1,169

 
$
1,302

Consumer finance
—

 
5,113

 
(1,443
)
 
—

 
3,670

Tax services
5

 
21,344

 
(21,802
)
 
453

 
—

Total National Lending
805

 
28,433

 
(25,888
)
 
1,622

 
4,972

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
2,670

 
3,377

 
—

 
—

 
6,047

1-4 family real estate
803

 
(168
)
 
(45
)
 
—

 
590

Agricultural
2,574

 
(1,769
)
 
—

 
411

 
1,216

Commercial operating
150

 
23

 
—

 
—

 
173

Consumer
6

 
64

 
(31
)
 
3

 
42

Total Community Banking
6,203

 
1,527

 
(76
)
 
414

 
8,068

Unallocated
527

 
(527
)
 
—

 
—

 
—

Total
7,534

 
29,433

 
(25,964
)
 
2,037

 
13,040


Allowance for loan and lease losses:
Beginning balance
 
Provision (recovery) for loan and lease losses
 
Charge offs
 
Recoveries
 
Ending balance
Year Ended September 30, 2017
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
589

 
$
776

 
$
(626
)
 
$
61

 
$
800

Consumer finance
—

 
—

 
—

 
—

 
—

Tax services
6

 
7,612

 
(7,842
)
 
229

 
5

Total National Lending
595

 
8,388

 
(8,468
)
 
290

 
805

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
2,198

 
610

 
(138
)
 
—

 
2,670

1-4 family real estate
654

 
149

 
—

 
—

 
803

Agricultural
1,474

 
1,088

 
—

 
12

 
2,574

Commercial operating
110

 
425

 
(390
)
 
5

 
150

Consumer
51

 
(44
)
 
(1
)
 
—

 
6

Total Community Banking
4,487

 
2,228

 
(529
)
 
17

 
6,203

Unallocated
553

 
(26
)
 
—

 
—

 
527

Total
5,635

 
10,589

 
(8,997
)
 
307

 
7,534



 
Allowance
 
Loans and Leases
Recorded Investment
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
 
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
Year Ended September 30, 2018
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
$
588

 
$
714

 
$
1,302

 
$
13,612

 
$
1,496,237

 
$
1,509,849

Consumer finance
—

 
3,670

 
3,670

 
—

 
335,361

 
335,361

Tax services
—

 
—

 
—

 
—

 
1,073

 
1,073

Total National Lending
588

 
4,384

 
4,972

 
13,612

 
1,832,671

 
1,846,283

Community Banking
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
—

 
6,047

 
6,047

 
405

 
748,174

 
748,579

1-4 family real estate
—

 
590

 
590

 
94

 
223,388

 
223,482

Agricultural
—

 
1,216

 
1,216

 
1,454

 
59,044

 
60,498

Commercial operating
—

 
173

 
173

 
46

 
42,265

 
42,311

Consumer
—

 
42

 
42

 
—

 
23,836

 
23,836

Total Community Banking
—

 
8,068

 
8,068

 
1,999

 
1,096,707

 
1,098,706

Total
588

 
12,452

 
13,040

 
15,611

 
2,929,378

 
2,944,989


 
Allowance
 
Loans and Leases
Recorded Investment
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
 
Ending balance: individually evaluated for impairment
 
Ending balance: collectively evaluated for impairment
 
Total
Year Ended September 30, 2017
(Dollars in Thousands)
 
 
 
 
 
 
National Lending
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
$
—

 
$
800

 
$
800

 
$
—

 
$
255,308

 
$
255,308

Consumer finance
—

 
—

 
—

 
—

 
140,229

 
140,229

Tax services
—

 
5

 
5

 
—

 
192

 
192

Total National Lending
—

 
805

 
805

 
—

 
395,729

 
395,729

Community Banking
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
—

 
2,670

 
2,670

 
1,109

 
584,401

 
585,510

1-4 family real estate
—

 
803

 
803

 
72

 
196,634

 
196,706

Agricultural
—

 
2,574

 
2,574

 
—

 
95,394

 
95,394

Commercial operating
—

 
150

 
150

 
—

 
30,718

 
30,718

Consumer
—

 
6

 
6

 
—

 
22,775

 
22,775

Total Community Banking
—

 
6,203

 
6,203

 
—

 
931,103

 
931,103

Unallocated
—

 
527

 
527

 
—

 
—

 
—

Total
—

 
7,534

 
7,534

 
1,181

 
1,325,651

 
1,326,832
Asset Classification of Loans
The asset classification of loans and leases at September 30, 2018, and 2017, were as follows:

Asset Classification
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Year Ended September 30, 2018
(Dollars in Thousands)
 
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
1,379,902

 
$
—

 
$
116,334

 
$
13,613

 
1,509,849

Consumer finance
335,361

 
—

 
—

 
—

 
335,361

Tax services
1,073

 
—

 
—

 
—

 
1,073

Total National Lending
1,716,336

 
—

 
116,334

 
13,613

 
1,846,283

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
736,134

 
12,251

 
194

 
—

 
748,579

1-4 family real estate
222,883

 
281

 
239

 
79

 
223,482

Agricultural
42,292

 
2,447

 
4,872

 
10,887

 
60,498

Commercial operating
42,311

 
—

 
—

 
—

 
42,311

Consumer
23,580

 
256

 
—

 
—

 
23,836

Total Community Banking
1,067,200

 
15,235

 
5,305

 
10,966

 
1,098,706

Total Loans and Leases
$
2,783,536

 
$
15,235

 
$
121,639

 
$
24,579

 
$
2,944,989


Asset Classification
Pass
 
Watch
 
Special Mention
 
Substandard
 
Total
Year Ended September 30, 2017
(Dollars in Thousands)
 
National Lending
 
 
 
 
 
 
 
 
 
Commercial finance
$
255,308

 
$
—

 
$
—

 
$
—

 
255,308

Consumer finance
140,229

 
—

 
—

 
—

 
140,229

Tax services
192

 
—

 
—

 
—

 
192

Total National Lending
395,729

 
—

 
—

 
—

 
395,729

Community Banking
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
574,730

 
10,200

 
201

 
379

 
585,510

1-4 family real estate
195,838

 
525

 
247

 
96

 
196,706

Agricultural
45,770

 
6,547

 
2,939

 
40,138

 
95,394

Commercial operating
30,718

 
—

 
—

 
—

 
30,718

Consumer
22,775

 
—

 
—

 
—

 
22,775

Total Community Banking
869,831

 
17,272

 
3,387

 
40,613

 
931,103

Total Loans and Leases
$
1,265,560

 
$
17,272

 
$
3,387

 
$
40,613

 
$
1,326,832
Past Due Loans
Past due loans and leases at September 30, 2018 and 2017 were as follows:
 
Accruing and Non-accruing Loans and Leases
 
Non-performing Loans and Leases
Past Due Loans and Leases
30-59 Days
Past Due
 
60-89 Days
Past Due
 
>
89 Days Past Due
 
Total Past
Due
 
Current
 
Total Loans and Leases
Receivable
 
> 89 Days Past Due and Accruing
 
Non-accrual balance
 
Total
Year Ended September 30, 2018
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
20,708

 
3,702

 
5,996

 
30,406

 
1,479,443

 
1,509,849

 
3,801

 
2,864

 
6,665

Consumer finance
3,209

 
1,595

 
2,384

 
7,188

 
328,173

 
335,361

 
2,384

 
—

 
2,384

Tax services
—

 
—

 
1,073

 
1,073

 
—

 
1,073

 
1,073

 
—

 
1,073

Total National Lending
23,917

 
5,297

 
9,453

 
38,667

 
1,807,616

 
1,846,283

 
7,258

 
2,864

 
10,122

Community Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
—

 
—

 
—

 
—

 
748,579

 
748,579

 
—

 
—

 
—

1-4 family real estate
105

 
—

 
79

 
184

 
223,298

 
223,482

 
79

 
—

 
79

Agricultural
—

 
—

 
—

 
—

 
60,498

 
60,498

 
—

 
—

 
—

Commercial operating
—

 
—

 
—

 
—

 
42,311

 
42,311

 
—

 
—

 
—

Consumer
—

 
—

 
—

 
—

 
23,836

 
23,836

 
—

 
—

 
—

Total Community Banking
105

 
—

 
79

 
184

 
1,098,522

 
1,098,706

 
79

 
—

 
79

Total Loans and Leases
24,022

 
5,297

 
9,532

 
38,851

 
2,906,138

 
2,944,989

 
7,337

 
2,864

 
10,201


 
Accruing and Non-accruing Loans and Leases
 
Non-performing Loans and Leases
Past Due Loans and Leases
30-59 Days
Past Due
 
60-89 Days
Past Due
 
>
89 Days Past Due
 
Total Past
Due
 
Current
 
Total Loans and Leases
Receivable
 
> 89 Days Past Due and Accruing
 
Non-accrual balance
 
Total
Year Ended September 30, 2017
(Dollars in Thousands)
National Lending
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial finance
$
1,509

 
$
2,442

 
$
1,205

 
$
5,156

 
$
250,152

 
$
255,308

 
$
1,205

 
$
—

 
$
1,205

Consumer finance
2,503

 
541

 
1,387

 
4,431

 
135,798

 
140,229

 
1,387

 
—

 
1,387

Tax services
—

 
—

 
—

 
—

 
192

 
192

 
—

 
—

 
—

Total National Lending
4,012

 
2,983

 
2,592

 
9,587

 
386,142

 
395,729

 
2,592

 
—

 
2,592

Community Banking
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Commercial and multi-family real estate
295

 
—

 
390

 
685

 
584,825

 
585,510

 
—

 
685

 
685

1-4 family real estate
370

 
79

 
—

 
449

 
196,257

 
196,706

 
—

 
—

 
—

Agricultural
—

 
—

 
34,295

 
34,295

 
61,099

 
95,394

 
34,295

 
—

 
34,295

Commercial operating
—

 
—

 
—

 
—

 
30,718

 
30,718

 
—

 
—

 
—

Consumer
9

 
17

 
19

 
45

 
22,730

 
22,775

 
19

 
—

 
19

Total Community Banking
674

 
96

 
34,704

 
35,474

 
895,629

 
931,103

 
34,314

 
685

 
34,999

Total Loans and Leases
$
4,686

 
$
3,079

 
$
37,296

 
$
45,061

 
$
1,281,771

 
$
1,326,832

 
$
36,906

 
$
685

 
$
37,591
Impaired Loans
Impaired loans and leases at September 30, 2018 and 2017 were as follows:

September 30, 2018
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
Loans and leases without a specific valuation allowance
(Dollars in Thousands)
National Lending
 
 
 
 
 
Commercial finance
$
8,199

 
$
8,529

 
$
—

Total National Lending
8,199

 
8,529

 
—

Community Banking
 
 
 
 
 
Commercial and multi-family real estate
405

 
405

 
—

1-4 family real estate
94

 
94

 
—

Agricultural
1,454

 
1,454

 
—

Consumer
46

 
46

 
—

Total Community Banking
1,999

 
1,999

 
—

Total
10,198

 
10,528

 
—

Loans and leases with a specific valuation allowance
 
National Lending
 
 
 
 
 
Commercial finance
$
5,413

 
$
5,663

 
$
588

Total National Lending
5,413

 
5,663

 
588

Total
5,413

 
5,413

 
588

September 30, 2017
Recorded
Balance
 
Unpaid Principal
Balance
 
Specific
Allowance
Loans and leases without a specific valuation allowance
(Dollars in Thousands)
Community Banking
 
 
 
 
 
Commercial and multi-family real estate
$
1,109

 
$
1,109

 
$
—

1-4 family real estate
72

 
72

 
—

Total Community Banking
1,181

 
1,181

 
—

Total
$
1,181

 
$
1,181

 
$
—

Loans and leases with a specific valuation allowance
 
Total
$
—

 
$
—

 
$
—


Cash interest collected on impaired loans and leases was not material during the years ended September 30, 2018 and 2017.
The following table provides the average recorded investment in impaired loans and leases for the years ended September 30, 2018 and 2017.
 
 
Year Ended September 30,
 
2018
 
2017
 
Average
Recorded
Investment
 
Average
Recorded
Investment
 
(Dollars in Thousands)
National Lending
 
 
 
Commercial finance
$
1,134

 
$
—

Total National Lending
1,134

 
—

Community Banking
 
 
 
Commercial and multi-family real estate
673

 
883

1-4 family real estate
159

 
176

Agricultural
1,652

 
414

Commercial operating
—

 
202

Consumer
67

 
—

Total Community Banking
2,551

 
1,675

Total loans and leases
3,685

 
1,675
v3.10.0.1
LOAN SERVICING (Tables)
 12 Months Ended
Sep. 30, 2018
Transfers and Servicing [Abstract]  
Unpaid Principal Balances of Loans Serviced for Others
Loans serviced for others are not reported as assets.  The unpaid principal balances of these loans at fiscal year-end were as follows:
 
September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Mortgage loan portfolios serviced for Fannie Mae
$
2,338

 
$
3,162

 
$
3,980

SBA/USDA
98,942

 
—

 
—

Other
32,726

 
18,649

 
15,452

 
$
134,006

 
$
21,811

 
$
19,432
v3.10.0.1
EARNINGS PER COMMON SHARE (Tables)
 12 Months Ended
Sep. 30, 2018
Earnings Per Share [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of the net income and common stock share amounts used in the computation of basic and diluted EPS for the fiscal years ended September 30, 2018, 2017 and 2016 is presented below. All share and per share data reported for all periods presented in the table below has been adjusted to reflect the 3-for-1 forward stock split.
 
 
2018
 
2017
 
2016
 
(Dollars in Thousands, Except Share and Per Share Data)
Basic income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
51,620

 
$
44,917

 
$
33,220

Weighted average common shares outstanding
30,737,499

 
27,741,276

 
25,331,868

Basic income per common share
$
1.68

 
$
1.62

 
$
1.31

 
 
 
 
 
 
Diluted income per common share:
 
 
 
 
 
   Net income attributable to Meta Financial Group, Inc.
$
51,620

 
$
44,917

 
$
33,220

Weighted average common shares outstanding
30,737,499

 
27,741,276

 
25,331,868

     Outstanding options - based upon the two-class method
115,551

 
166,956

 
160,170

Weighted average diluted common shares outstanding
30,853,050

 
27,908,232

 
25,492,038

Diluted income per common share
$
1.67

 
$
1.61

 
$
1.30
v3.10.0.1
SECURITIES (Tables)
 12 Months Ended
Sep. 30, 2018
Investments, Debt and Equity Securities [Abstract]  
Securities Available for Sale
Securities available for sale at September 30, 2018 and 2017 were as follows:
 
Available For Sale
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2018
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Small business administration securities
$
45,591

 
$
1

 
$
(1,255
)
 
$
44,337

Obligation of states and political subdivisions
17,154

 
49

 
(293
)
 
16,910

Non-bank qualified obligations of states and political subdivisions
1,140,884

 
826

 
(31,825
)
 
1,109,885

Asset-backed securities
310,700

 
2,585

 
(257
)
 
313,028

Mortgage-backed securities
378,301

 
—

 
(14,236
)
 
364,065

Total debt securities
1,892,630

 
3,461

 
(47,866
)
 
1,848,225

Common equities and mutual funds
3,172

 
635

 
(7
)
 
3,800

Total available for sale securities
$
1,895,802

 
$
4,096

 
$
(47,873
)
 
$
1,852,025


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Small business administration securities
$
57,046

 
$
825

 
$
—

 
$
57,871

Non-bank qualified obligations of states and political subdivisions
938,883

 
14,983

 
(3,037
)
 
950,829

Asset-backed securities
94,451

 
2,381

 
—

 
96,832

Mortgage-backed securities
588,918

 
1,259

 
(3,723
)
 
586,454

Total debt securities
1,679,298

 
19,448

 
(6,760
)
 
1,691,986

Common equities and mutual funds
1,009

 
436

 
—

 
1,445

Total available for sale securities
$
1,680,307

 
$
19,884

 
$
(6,760
)
 
$
1,693,431
Securities Held to Maturity
Securities held to maturity at September 30, 2018 and 2017 were as follows:
 
Held to Maturity
 
 
GROSS

 
GROSS

 
 
 
AMORTIZED

 
UNREALIZED

 
UNREALIZED

 
FAIR

At September 30, 2018
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
$
164,304

 
$
—

 
$
(10,758
)
 
$
153,546

Mortgage-backed securities
7,850

 
—

 
(422
)
 
7,428

Total held to maturity securities
$
172,154

 
 
 
$
(11,180
)
 
$
160,974


 
AMORTIZED

 
GROSS
UNREALIZED

 
GROSS
UNREALIZED

 
FAIR

At September 30, 2017
COST

 
GAINS

 
(LOSSES)

 
VALUE

 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
19,247

 
$
157

 
$
(36
)
 
$
19,368

Non-bank qualified obligations of states and political subdivisions
430,593

 
4,744

 
(2,976
)
 
432,361

Mortgage-backed securities
113,689

 
—

 
(1,233
)
 
112,456

Total held to maturity securities
$
563,529

 
$
4,901

 
$
(4,245
)
 
$
564,185
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in continuous unrealized loss position at September 30, 2018, and 2017, were as follows:
 
Available For Sale
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2018
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
$
43,097

 
$
(1,255
)
 
$
—

 
$
—

 
$
43,097

 
$
(1,255
)
Obligations of states and political subdivisions
11,036

 
(279
)
 
881

 
(14
)
 
11,917

 
(293
)
Non-bank qualified obligations of states and political subdivisions
626,693

 
(13,539
)
 
358,095

 
(18,286
)
 
984,788

 
(31,825
)
Asset-backed securities
146,638

 
(257
)
 
—

 
—

 
146,638

 
(257
)
Mortgage-backed securities
121,217

 
(3,292
)
 
242,849

 
(10,944
)
 
364,066

 
(14,236
)
Total debt securities
948,681

 
(18,622
)
 
601,825

 
(29,244
)
 
1,550,506

 
(47,866
)
Common equities and mutual funds
1,818

 
(7
)
 
—

 
—

 
1,818

 
(7
)
Total available for sale securities
$
950,499

 
$
(18,629
)
 
$
601,825

 
$
(29,244
)
 
$
1,552,324

 
$
(47,873
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
$
280,900

 
$
(2,887
)
 
$
5,853

 
$
(150
)
 
$
286,753

 
$
(3,037
)
Mortgage-backed securities
237,897

 
(1,625
)
 
100,287

 
(2,098
)
 
338,184

 
(3,723
)
Total available for sale securities
$
518,797

 
$
(4,512
)
 
$
106,140

 
$
(2,248
)
 
$
624,937

 
$
(6,760
)
Gross Unrealized Losses and Fair Value of Securities Held to Maturity in Continuous Unrealized Loss Position
Held To Maturity
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2018
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Non-bank qualified obligations of states and political subdivisions
$
6,178

 
$
(287
)
 
$
147,368

 
$
(10,471
)
 
$
153,546

 
$
(10,758
)
Mortgage-backed securities
—

 
—

 
7,428

 
(422
)
 
7,428

 
(422
)
Total held to maturity securities
6,178

 
(287
)
 
154,796

 
(10,893
)
 
160,974

 
(11,180
)

 
LESS THAN 12 MONTHS
 
OVER 12 MONTHS
 
TOTAL
At September 30, 2017
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
Fair
Value
 
Unrealized
(Losses)
 
(Dollars in Thousands)
Debt securities
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions
$
1,364

 
$
(6
)
 
$
4,089

 
$
(30
)
 
$
5,453

 
$
(36
)
Non-bank qualified obligations of states and political subdivisions
202,018

 
(2,783
)
 
6,206

 
(193
)
 
208,224

 
(2,976
)
Mortgage-backed securities
112,456

 
(1,233
)
 
—

 
—

 
112,456

 
(1,233
)
Total held to maturity securities
$
315,838

 
$
(4,022
)
 
$
10,295

 
$
(223
)
 
$
326,133

 
$
(4,245
)
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.

Available For Sale
 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2018
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
2,532

 
$
2,529

Due after one year through five years
41,415

 
41,504

Due after five years through ten years
352,099

 
350,143

Due after ten years
1,118,283

 
1,089,984

 
1,514,329

 
1,484,160

Mortgage-backed securities
378,301

 
364,065

Common equities and mutual funds
3,172

 
3,800

Total available for sale securities
$
1,895,802

 
$
1,852,025

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
—

 
$
—

Due after one year through five years
36,586

 
37,674

Due after five years through ten years
347,831

 
358,198

Due after ten years
705,963

 
709,660

 
1,090,380

 
1,105,532

Mortgage-backed securities
588,918

 
586,454

Common equities and mutual funds
1,009

 
1,445

Total available for sale securities
$
1,680,307

 
$
1,693,431


Held To Maturity
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2018
(Dollars in Thousands)
 
 
 
 
Due after ten years
164,304

 
153,546

 
164,304

 
153,546

Mortgage-backed securities
7,850

 
7,428

Total held to maturity securities
$
172,154

 
$
160,974

 
AMORTIZED
COST

 
FAIR
VALUE

At September 30, 2017
(Dollars in Thousands)
 
 
 
 
Due in one year or less
$
1,483

 
$
1,480

Due after one year through five years
17,926

 
18,160

Due after five years through ten years
144,996

 
147,832

Due after ten years
285,435

 
284,257

 
449,840

 
451,729

Mortgage-backed securities
113,689

 
112,456

Total held to maturity securities
$
563,529

 
$
564,185
Summary of Activities Related to Sale of Securities Available for Sale
Activities related to the sale of securities are summarized below.
 
 
2018
 
2017
 
2016
Year ended
(Dollars in Thousands)
Available For Sale
 
 
 
 
 
   Proceeds from sales
$
596,758

 
$
457,306

 
$
285,508

   Gross gains on sales
2,551

 
4,091

 
1,459

   Gross losses on sales
10,728

 
4,628

 
1,785

 Net loss on available for sale securities
(8,177
)
 
(537
)
 
(326
)
 
 
 
 
 
 
Held To Maturity
 
 
 
 
 
   Net carrying amount of securities sold
$
—

 
$
5,826

 
$
—

   Gross realized gain on sales
—

 
92

 
—

   Gross realized losses on sales
—

 
48

 
—

Net gain on held to maturity securities
—

 
44

 
—
v3.10.0.1
PREMISES, FURNITURE, AND EQUIPMENT, NET (Tables)
 12 Months Ended
Sep. 30, 2018
Property, Plant and Equipment [Abstract]  
Summary of Year-End Premises and Equipment
Year-end premises and equipment were as follows:
 
September 30,
2018
 
2017
 
(Dollars in Thousands)
 
 
 
 
Land
$
2,932

 
$
1,578

Buildings
27,359

 
10,642

Furniture, fixtures, and equipment
56,438

 
46,934

Capitalized leases
2,259

 
2,259

 
88,988

 
61,413

Less: accumulated depreciation and amortization
(48,530
)
 
(42,093
)
Net book value
$
40,458

 
$
19,320
v3.10.0.1
TIME CERTIFICATES OF DEPOSITS (Tables)
 12 Months Ended
Sep. 30, 2018
Deposits [Abstract]  
Scheduled Maturities of Time Certificates of Deposits
At September 30, 2018, the scheduled maturities of time certificates of deposits were as follows for the years ending:
 
As of September 30,
 
(Dollars in Thousands)
 
 
 
2019
$
1,562,801

2020
125,581

2021
16,623

2022
6,929

2023
1,048

Total (1)
1,712,982


(1) As of September 30, 2018, the Company had $1.44 billion of certificates of deposits which were recorded in wholesale deposits on the Consolidated Statements of Financial Condition.
v3.10.0.1
SHORT TERM DEBT AND LONG TERM DEBT (Tables)
 12 Months Ended
Sep. 30, 2018
Debt Disclosure [Abstract]  
Schedule of Short-term Debt
Short Term Debt
September 30,
2018
 
2017
 
 
 
 
Overnight federal funds purchased
$
422,000

 
$
987,000

Short-term FHLB advances
—

 
415,000

Short-term capital lease
65

 
62

Repurchase agreements
3,694

 
2,472

     Total
425,759

 
1,404,534
Schedule of Repurchase Agreements
An analysis of securities sold under agreements to repurchase at September 30, 2018 and 2017 follows:

September 30,
2018
 
2017
 
(Dollars in Thousands)
 
 
 
 
Highest month-end balance
$
3,740

 
$
3,782

Average balance
2,557

 
2,225

Weighted average interest rate for the year
2.05
%
 
0.98
%
Weighted average interest rate at year end
2.48
%
 
1.59
%
Schedule of Long-term Debt
Long Term Debt
September 30,
2018
 
2017
(Dollars in Thousands)
 
 
 
Long-term FHLB advances
$
—

 
$
—

Trust preferred securities
13,661

 
10,310

Subordinated debentures (net of issuance costs)
73,491

 
73,347

Long-term capital lease
1,811

 
1,876

     Total
88,963

 
85,533
Scheduled maturities of FHLB advances
At September 30, 2018, the scheduled maturities of the Company's long-term debt were as follows for the years ending:
September 30,
 
 
 
 
(Dollars in Thousands)
Trust preferred securities
Subordinated debentures
Long-term capital lease
Total
2019
$
—

$
—

$
—

$
—

2020
—

—

73

73

2021
—

—

77

77

2022
—

—

82

82

2023
—

—

87

87

Thereafter
13,661

73,491

1,492

88,644

Total long-term debt
$
13,661

$
73,491

$
1,811

$
88,963
v3.10.0.1
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Tables)
 12 Months Ended
Sep. 30, 2018
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS [Abstract]  
Year-End ESOP Shares
Year-end ESOP shares are as follows:
 
At September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
 
 
 
 
 
 
Allocated shares
812,346

 
768,657

 
788,616

Unearned shares
—

 


 
—

Total ESOP shares
812,346

 
768,657

 
788,616

Fair value of unearned shares
$
—

 
$
—

 
$
—
v3.10.0.1
SHARE BASED COMPENSATION PLANS (Tables)
 12 Months Ended
Sep. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Effect to Income, Net of Tax Benefits, of Share-Based Expense Recorded
The following table shows the effect to income, net of tax benefits, of share-based expense recorded in the years ended September 30, 2018, 2017 and 2016.
 
Year Ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,139, $3,907, and $192, respectively
$
7,878

 
$
6,486

 
$
559
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 years ended September 30, 2018 and 2017.
 
 
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, 2017
227,271

 
$
7.54

 
2.28

 
$
4,225

Granted
—

 
—

 
—

 
—

Exercised
(71,310
)
 
5.48

 
—

 
1,909

Forfeited or expired
—

 
—

 
—

 
—

Options outstanding, September 30, 2018
155,961

 
$
8.48

 
1.78

 
$
2,974

 
 
 
 
 
 
 
 
Options exercisable end of year
155,961

 
$
8.48

 
1.78

 
$
2,974

 
Number
of
Shares

 
Weighted
Average
Exercise
Price

 
Weighted
Average
Remaining
Contractual
Term (Yrs)

 
Aggregate
Intrinsic
Value

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
 
 
 
 
Options outstanding, September 30, 2016
376,680

 
$
8.58

 
2.68

 
$
4,379

Granted
—

 
—

 
—

 
—

Exercised
(88,158
)
 
11.13

 
—

 
1,790

Forfeited or expired
(61,251
)
 
9

 
—

 
1,464

Options outstanding, September 30, 2017
227,271

 
$
7.54

 
2.28

 
$
4,225

 
 
 
 
 
 
 
 
Options exercisable end of year
227,271

 
$
7.54

 
2.28

 
$
4,225
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, 2017
913,578

 
$
28.99

Granted
354,108

 
30.36

Vested
(253,944
)
 
27.49

Forfeited or expired
(7,929
)
 
23.27

Nonvested shares outstanding, September 30, 2018
1,005,813

 
$
29.89

 
Number of
Shares

 
Weighted Average
Fair Value At Grant

 
(Dollars in Thousands, Except Share and Per Share Data)
 
 
 
 
Nonvested shares outstanding, September 30, 2016
61,968

 
$
13.79

Granted
949,812

 
29.16

Vested
(87,405
)
 
21.41

Forfeited or expired
(10,797
)
 
18.80

Nonvested shares outstanding, September 30, 2017
913,578

 
$
28.99
v3.10.0.1
INCOME TAXES (Tables)
 12 Months Ended
Sep. 30, 2018
Income Tax Disclosure [Abstract]  
Provision for Income Taxes
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis. The provision for income taxes for the years presented below consisted of the following:
 
Years ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Federal:
 
 
 
 
 
Current
$
(4,023
)
 
$
12,153

 
$
4,410

Deferred
5,895

 
(5,040
)
 
(440
)
 
1,872

 
7,113

 
3,970

 
 
 
 
 
 
State:
 

 
 

 
 

Current
2,611

 
4,366

 
1,422

Deferred
634

 
(1,246
)
 
210

 
3,245

 
3,120

 
1,632

 
 
 
 
 
 
Income tax expense
$
5,117

 
$
10,233

 
$
5,602
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.
Years ended September 30,
2018
 
2017
2016
(Dollars in Thousands)
Amount
 
Rate
 
Amount
 
Rate
Amount
 
Rate
 
 
 
 
 
 
 
 
 
 
 
Statutory federal income tax expense and rate
$
14,082

 
24.5
 %
 
$
19,303

 
35.0
 %
$
13,588

 
35.0
 %
Change in tax rate resulting from:
 
 
 
 
 
 
 
 
 
 
State income taxes net of federal benefits
2,461

 
4.3
 %
 
2,014

 
3.7
 %
933

 
2.4
 %
Tax exempt income
(6,968
)
 
(12.1
)%
 
(9,991
)
 
(18.1
)%
(8,257
)
 
(21.3
)%
Nondeductible acquisition costs
1,295

 
2.3
 %
 
—

 
—
 %
—

 
—
 %
General business credits
(3,948
)
 
(6.9
)%
 
—

 
—
 %
—

 
—
 %
Tax Reform
3,849

 
6.7
 %
 
—

 
—
 %
—

 
—
 %
Amended Crestmark Bancorp historical tax return
(4,644
)
 
(8.1
)%
 
—

 
—
 %
—

 
—
 %
Other, net
(1,010
)
 
(1.7
)%
 
(1,093
)
 
(2.0
)%
(662
)
 
(1.7
)%
Total income tax expense
$
5,117

 
9.0
 %
 
$
10,233

 
18.6
 %
$
5,602

 
14.4
 %
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 at September 30, 2018 and 2017 were:

September 30,
2018
 
2017
 
(Dollars in Thousands)
Deferred tax assets:
 
 
 
Bad debts
$
3,224

 
$
2,832

Deferred compensation
3,495

 
1,548

Stock based compensation
3,758

 
3,436

AMT Credit
—

 
1,869

Intangibles
—

 
5,235

Net unrealized losses on securities available for sale
10,663

 
—

Valuation adjustments
6,991

 
—

General business credits (1)
12,243

 
—

Accrued expenses
3,144

 
1,188

Other assets
1,629

 
1,579

 
45,147

 
17,687

 
 
 
 
Deferred tax liabilities:
 

 
 

Premises and equipment
(347
)
 
(1,713
)
Intangibles
(4,231
)
 
—

Net unrealized gains on securities available for sale
—

 
(4,934
)
Deferred income
(2,070
)
 
—

Leased assets
(17,985
)
 
—

Other liabilities
(1,777
)
 
(1,939
)
 
(26,410
)
 
(8,586
)
 
 
 
 
Net deferred tax assets
$
18,737

 
$
9,101


(1) The general business credits are investment tax credits generated from qualified solar energy property placed in service during the year ended September 30, 2018 or in previous periods by Crestmark prior to acquisition. These credits expire on September 30, 2037.
Reconciliation of Liabilities Associated with Unrecognized Tax Benefits
A reconciliation of the beginning and ending balances for liabilities associated with unrecognized tax benefits for the years ended September 30, 2018, and 2017 follows:
 
September 30,
2018

 
2017

 
(Dollars in Thousands)
Balance at beginning of year
$
645

 
$
525

Additions for tax positions related to the current year
—

 
192

Additions for tax positions related to the prior years
—

 
31

Reductions for tax positions related to prior years
(211
)
 
(103
)
Balance at end of year
$
434

 
$
645
v3.10.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS (Tables)
 12 Months Ended
Sep. 30, 2018
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS [Abstract]  
Bank's Actual and Required Capital Amount and Ratios
The table below includes certain non-GAAP financial measures that are used by investors, analysts and bank regulatory agencies to assess the capital position of financial services companies.  Management reviews these measures along with other measures of capital as part of its financial analyses and has included this non-GAAP financial information, and the corresponding reconciliation to total equity.

 
Company
 
Bank
 
Minimum
Requirement For
Capital Adequacy
Purposes
 
Minimum Requirement
To Be Well Capitalized
Under Prompt
Corrective Action
Provisions
September 30, 2018
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Tier 1 leverage ratio
8.50
%
 
9.75
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
10.56

 
12.50

 
4.50

 
6.50

Tier 1 capital ratio
10.97

 
12.56

 
6.00

 
8.00

Total qualifying capital ratio
13.18

 
12.89

 
8.00

 
10.00

 
 
 
 
 
 
 
 
September 30, 2017
 

 
 

 
 

 
 

 
 
 
 
 
 
 
 
Tier 1 leverage ratio
7.64
%
 
9.64
%
 
4.00
%
 
5.00
%
Common equity Tier 1 capital ratio
13.97

 
18.22

 
4.50

 
6.50

Tier 1 capital ratio
14.46

 
18.22

 
6.00

 
8.00

Total qualifying capital ratio
18.41

 
18.59

 
8.00

 
10.00
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, 2018
 
(Dollars in Thousands)
 
 
Total stockholders' equity
$
747,726

Adjustments:
 

LESS: Goodwill, net of associated deferred tax liabilities
299,456

LESS: Certain other intangible assets
64,716

LESS: Net unrealized gains (losses) on available-for-sale securities
(33,114
)
LESS: Non-controlling interest
3,574

LESS: Unrealized currency gains (losses)
3

Common Equity Tier 1 (1)
413,091

Long-term debt and other instruments qualifying as Tier 1
13,661

Tier 1 minority interest not included in common equity tier 1 capital
2,118

Total Tier 1 capital
428,870

Allowance for loan and lease losses
13,185

Subordinated debentures (net of issuance costs)
73,491

Total qualifying capital
515,546


(1) The Basel III Capital Rules revised the definition of capital, increased minimum capital ratios, and introduced a minimum CET1 ratio.  Those changes became effective for the Company on January 1, 2015, and are being fully phased in through the end of 2021.  The capital ratios were determined using the Basel III Capital Rules that became effective on January 1, 2015.
v3.10.0.1
LEASE COMMITMENTS (Tables)
 12 Months Ended
Sep. 30, 2018
Leases [Abstract]  
Total Minimum Rental Commitment for Operating and Capital Leases
The following table shows the total minimum rental commitment for the Company's operating and capital leases for each of the years presented below as of September 30, 2018.

 
Year Ended September 30,
 
(Dollars in Thousands)
 
Operating
Leases
 
Capital
Leases
2019
$
3,854

 
$
179

2020
3,656

 
182

2021
3,429

 
182

2022
2,955

 
182

2023
2,561

 
182

Thereafter
21,428

 
2,058

Total Leases Commitments
$
37,883

 
$
2,965

 
 
 
 
Amounts representing interest
 

 
$
1,089

Present value of net minimum lease payments
 

 
1,876
v3.10.0.1
SEGMENT REPORTING (Tables)
 12 Months Ended
Sep. 30, 2018
Segment Reporting [Abstract]  
Segment Information of Entity
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2018
 
 
 
 
 
 
 
Interest income
$
24,487

 
$
97,817

 
$
36,230

 
$
158,534

Interest expense
1,646

 
7,012

 
19,327

 
27,985

Net interest income
22,841

 
90,805

 
16,903

 
130,549

Provision for loan and lease losses
21,344

 
8,088

 
—

 
29,432

Non-interest income
176,250

 
13,950

 
(5,675
)
 
184,525

Non-interest expense
126,610

 
46,982

 
54,640

 
228,232

Income (loss) before income tax expense (benefit)
51,137

 
49,685

 
(43,412
)
 
57,410

 
 
 
 
 
 
 
 
Total assets
186,502

 
3,413,409

 
2,235,156

 
5,835,067

Total goodwill
87,145

 
216,125

 
—

 
303,270

Total deposits
2,412,986

 
746,003

 
1,271,998

 
4,430,987

 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2017
 
 
 
 
 
 
 
Interest income
$
13,845

 
$
52,231

 
$
42,027

 
$
108,103

Interest expense
503

 
2,723

 
11,647

 
14,873

Net interest income
13,342

 
49,508

 
30,380

 
93,230

Provision for loan losses
7,613

 
2,976

 
—

 
10,589

Non-interest income
165,707

 
4,685

 
1,780

 
172,172

Non-interest expense
132,984

 
24,520

 
42,159

 
199,663

Income (loss) before income tax expense (benefit)
38,452

 
26,697

 
(9,999
)
 
55,150

 
 
 
 
 
 
 
 
Total assets
185,521

 
1,343,968

 
3,698,843

 
5,228,332

Total goodwill
87,145

 
11,578

 
—

 
98,723

Total deposits
2,436,893

 
229,969

 
556,562

 
3,223,424

 
 
Payments
 
Banking
 
Corporate Services/Other
 
Total
Year Ended September 30, 2016
 
 
 
 
 
 
 
Interest income
$
9,711

 
$
38,321

 
$
33,364

 
$
81,396

Interest expense
181

 
1,331

 
2,579

 
4,091

Net interest income
9,530

 
36,990

 
30,785

 
77,305

Provision for loan losses
971

 
3,634

 
—

 
4,605

Non-interest income
95,261

 
4,280

 
1,229

 
100,770

Non-interest expense
77,411

 
23,001

 
34,236

 
134,648

Income (loss) before income tax expense (benefit)
26,409

 
14,635

 
(2,222
)
 
38,822

 
 
 
 
 
 
 
 
Total assets
87,311

 
946,420

 
2,972,688

 
4,006,419

Total goodwill
25,350

 
11,578

 
—

 
36,928

Total deposits
2,131,042

 
299,030

 
10

 
2,430,082
v3.10.0.1
PARENT COMPANY FINANCIAL STATEMENTS (Tables)
 12 Months Ended
Sep. 30, 2018
Condensed Financial Information Disclosure [Abstract]  
Condensed Statements of Financial Condition
CONDENSED STATEMENTS OF FINANCIAL CONDITION
 
September 30,
2018
 
2017
 
(Dollars in Thousands)
ASSETS
 
 
 
Cash and cash equivalents
$
28,209

 
$
14,569

Investment securities held to maturity
411

 
310

Investment in subsidiaries
823,215

 
521,021

Other assets
124

 
96

Total assets
$
851,959

 
$
535,996

 
 
 
 
LIABILITIES AND STOCKHOLDERS' EQUITY
 

 
 

 
 
 
 
LIABILITIES
 

 
 

Long term debt
$
87,152

 
$
83,657

Other liabilities
17,081

 
17,843

Total liabilities
$
104,233

 
$
101,500

 
 
 
 
STOCKHOLDERS' EQUITY
 

 
 

Common stock
$
393

 
$
288

Additional paid-in capital
565,811

 
258,144

Retained earnings
213,048

 
167,164

Accumulated other comprehensive income (loss)
(33,111
)
 
9,166

Treasury stock, at cost
(1,989
)
 
(266
)
Total equity attributable to parent
744,152

 
434,496

Non-controlling interest
3,574

 
—

Total stockholders' equity
747,726

 
434,496

Total liabilities and stockholders' equity
$
851,959

 
$
535,996
Condensed Statements of Operations
CONDENSED STATEMENTS OF OPERATIONS
 
Years Ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
Interest expense
$
5,061

 
$
4,959

 
$
1,022

Other expense
663

 
440

 
382

Total expense
5,724

 
5,399

 
1,404

 
 
 
 
 
 
Loss before income taxes and equity in undistributed net income of subsidiaries
(5,724
)
 
(5,399
)
 
(1,404
)
 
 
 
 
 
 
Income tax (benefit)
(1,504
)
 
(1,935
)
 
(519
)
 
 
 
 
 
 
Loss before equity in undistributed net income of subsidiaries
(4,220
)
 
(3,464
)
 
(885
)
 
 
 
 
 
 
Equity in undistributed net income of subsidiaries
55,840

 
48,381

 
34,105

 
 
 
 
 
 
Net income attributable to parent
$
51,620

 
$
44,917

 
$
33,220
Condensed Statements of Cash Flows
CONDENSED STATEMENTS OF CASH FLOWS
For the Years Ended September 30,
2018
 
2017
 
2016
 
(Dollars in Thousands)
CASH FLOWS FROM OPERATING ACTIVITIES
 
 
 
 
 
Net Income attributable to parent
$
51,620

 
$
44,917

 
$
33,220

Adjustments to reconcile net income to net cash provided by operating activities:
 
 
 
 
 
Depreciation, amortization and accretion, net
143

 
136

 
(22
)
Equity in undistributed net income of subsidiaries
(55,840
)
 
(48,381
)
 
(34,105
)
Stock compensation
11,123

 
10,393

 
426

Other assets
232

 
7

 
(5
)
Accrued expenses and other liabilities
(860
)
 
16,636

 
541

Cash dividend received
45,315

 
—

 
—

Net cash provided by operating activities
51,733

 
23,708

 
55

 
 
 
 
 
 
CASH FLOWS FROM INVESTING ACTIVITES
 
 
 
 
 
Held to Maturity:
 
 
 
 
 
Proceeds from maturities and principal repayments
8

 
—

 
—

Capital contributions to subsidiaries
(20,322
)
 
(82,820
)
 
(81,000
)
Net cash (used in) investing activities
(20,314
)
 
(82,820
)
 
(81,000
)
 
 
 
 
 
 
CASH FLOWS FROM FINANCING ACTIVITIES
 
 
 
 
 
Cash dividends paid
(5,736
)
 
(4,839
)
 
(4,389
)
Payment:
 
 
 
 
 
Short term debt
(11,642
)
 
—

 
—

Long term debt
(258
)
 
—

 
75,000

Debt issuance costs
—

 
—

 
(1,767
)
Purchase of shares by ESOP
1,606

 
1,174

 
—

Proceeds/(payment):
 
 
 
 
 
Contingent consideration - equity
—

 
24,142

 
—

Exercise of stock options & issuance of common stock
148

 
650

 
13,537

Issuance of restricted stock
4

 
12

 
—

Issuance of commons shares due to acquisitions
295,767

 
37,296

 
—

Cash acquired due to acquisitions
697

 
—

 
—

Net increase in investment in subsidiaries
(295,767
)
 
—

 
—

Shares repurchased for tax withholdings on stock compensation
(2,598
)
 
(470
)
 
—

Net cash provided by (used in) financing activities
(17,779
)
 
57,965

 
82,381

 
 
 
 
 
 
Net change in cash and cash equivalents
$
13,640

 
$
(1,147
)
 
$
1,436

 
 
 
 
 
 
CASH AND CASH EQUIVALENTS
 
 
 

 
 

Beginning of year
14,569

 
15,716

 
14,280

End of year
$
28,209

 
$
14,569

 
$
15,716
v3.10.0.1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Tables)
 12 Months Ended
Sep. 30, 2018
Quarterly Financial Information Disclosure [Abstract]  
Selected Quarterly Financial Data
 
QUARTER ENDED
 
December 31
 
March 31
 
June 30
 
September 30
 
(Dollars in Thousands, Except Per Share Data)
Fiscal Year 2018
 
 
 
 
 
 
 
Interest and dividend income
$
30,857

 
$
33,371

 
$
34,104

 
$
60,202

Interest expense
4,661

 
5,966

 
5,693

 
11,665

Net interest income
26,196

 
27,405

 
28,411

 
48,537

Provision for loan and lease losses
1,068

 
18,343

 
5,315

 
4,706

Non-interest income
29,268

 
97,419

 
33,225

 
24,613

Net Income attributable to parent
4,670

 
31,436

 
6,792

 
8,722

Earnings per common share
 

 
 

 
 

 
 

Basic
$
0.15

 
$
1.07

 
$
0.22

 
$
0.24

Diluted
0.15

 
1.06

 
0.22

 
0.24

Dividend declared per share
0.04

 
0.04

 
0.04

 
0.05

 
 
 
 
 
 
 
 
Fiscal Year 2017
 

 
 

 
 

 
 

Interest and dividend income
$
22,575

 
$
27,718

 
$
28,861

 
$
28,949

Interest expense
2,742

 
3,752

 
3,918

 
4,461

Net interest income
19,833

 
23,966

 
24,943

 
24,488

Provision (recovery) for loan losses
843

 
8,649

 
1,240

 
(144
)
Non-interest income
19,349

 
92,170

 
30,820

 
29,833

Net Income attributable to parent
1,244

 
32,142

 
9,787

 
1,744

Earnings per common share
 

 
 

 
 

 
 

Basic
$
0.05

 
$
1.15

 
$
0.35

 
$
0.07

Diluted
0.05

 
1.14

 
0.35

 
0.07

Dividend declared per share
0.04

 
0.04

 
0.04

 
0.04

 
 
 
 
 
 
 
 
Fiscal Year 2016
 

 
 

 
 

 
 

Interest and dividend income
$
18,275

 
$
20,629

 
$
20,763

 
$
21,729

Interest expense
720

 
691

 
844

 
1,836

Net interest income
17,555

 
19,938

 
19,919

 
19,893

Provision for loan losses
786

 
1,173

 
2,098

 
548

Non-interest income
16,834

 
40,901

 
23,807

 
19,228

Net Income attributable to parent
4,058

 
14,283

 
8,873

 
6,006

Earnings per common share
 

 
 

 
 

 
 

Basic
$
0.16

 
$
0.57

 
$
0.35

 
$
0.23

Diluted
0.16

 
0.56

 
0.35

 
0.23

Dividend declared per share
0.04

 
0.04

 
0.04

 
0.04
v3.10.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS (Tables)
 12 Months Ended
Sep. 30, 2018
Fair Value Disclosures [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of securities available for sale and held to maturity at September 30, 2018 and 2017.  Securities available for sale are measured at fair value on a recurring basis, while securities held to maturity are carried at amortized cost in the Consolidated Statements of Financial Condition.
 
 
Fair Value At September 30, 2018
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
44,337

 
—

 
44,337

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
16,910

 
—

 
16,910

 
—

 
—

 
—

 
—

 
—

Non-bank qualified obligations of states and political subdivisions
1,109,885

 
—

 
1,109,885

 
—

 
153,546

 
—

 
153,546

 
—

Asset-backed securities
313,028

 
—

 
313,028

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
364,065

 
—

 
364,065

 
—

 
7,428

 
—

 
7,428

 
—

Total debt securities
1,848,225

 
—

 
1,848,225

 
—

 
160,974

 
—

 
160,974

 
—

Common equities and mutual funds
3,800

 
3,800

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,852,025

 
$
3,800

 
$
1,848,225

 
$
—

 
$
160,974

 
$
—

 
$
160,974

 
$
—


 
Fair Value At September 30, 2017
 
Available For Sale
 
Held to Maturity
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
 
Total
 
Level 1
 
Level 2
 
Level 3
Debt securities
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Small business administration securities
57,871

 
—

 
57,871

 
—

 
—

 
—

 
—

 
—

Obligations of states and political subdivisions
—

 
—

 
—

 
—

 
19,368

 
—

 
19,368

 
—

Non-bank qualified obligations of states and political subdivisions
950,829

 
—

 
950,829

 
—

 
432,361

 
—

 
432,361

 
—

Asset-backed securities
96,832

 
—

 
96,832

 
—

 
—

 
—

 
—

 
—

Mortgage-backed securities
586,454

 
—

 
586,454

 
—

 
112,456

 
—

 
112,456

 
—

Total debt securities
1,691,986

 
—

 
1,691,986

 
—

 
564,185

 
—

 
564,185

 
—

Common equities and mutual funds
1,445

 
1,445

 
—

 
—

 
—

 
—

 
—

 
—

Total securities
$
1,693,431

 
$
1,445

 
$
1,691,986

 
$
—

 
$
564,185

 
$
—

 
$
564,185

 
$
—
Assets Measured at Fair Value on Nonrecurring Basis
The following table summarizes the assets of the Company that are measured at fair value in the Consolidated Statements of Financial Condition on a non-recurring basis as of September 30, 2018 and 2017.
 
 
Fair Value at September 30, 2018
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans and Leases, net
 
 
 
 
 
 
 
Commercial finance
$
4,825

 
$
—

 
$
—

 
$
4,825

Total National Lending
4,825

 
—

 
—

 
4,825

Total impaired loans and leases
4,825

 
—

 
—

 
4,825

Foreclosed Assets, net
31,638

 
—

 
—

 
31,638

Total
$
36,463

 
$
—

 
$
—

 
$
36,463


 
Fair Value At September 30, 2017
(Dollars in Thousands)
Total
 
Level 1
 
Level 2
 
Level 3
Impaired Loans and Leases, net
 
 
 
 
 
 
 
Foreclosed Assets, net
292

 
—

 
—

 
292

Total
$
292

 
$
—

 
$
—

 
$
292
Quantitative Information about Level 3 Fair Value Measurements
 
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
Fair Value at
September 30, 2018
 
Fair Value at
September 30, 2017
 
Valuation
Technique
 
Unobservable
Input
Impaired Loans and Leases, net
$
4,825

 
$
—

 
Market approach
 
Appraised values (1)
Foreclosed Assets, net
31,638

 
292

 
Market approach
 
Appraised values (1)

(1) The Company generally relies on external appraisers to develop this information.  Management reduced the appraised value by estimated selling costs in a range of 4% to 10%.
Carrying Amount and Estimated Fair Value of Financial Instruments
The following presents the carrying amount and estimated fair value of the financial instruments held by the Company at September 30, 2018 and 2017.

 
September 30, 2018
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
99,977

 
$
99,977

 
$
99,977

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,852,025

 
1,852,025

 
3,800

 
1,848,225

 
—

Securities held to maturity
172,154

 
160,974

 
—

 
160,974

 
—

Total securities
2,024,179

 
2,012,999

 
3,800

 
2,009,199

 
—

 
 
 
 
 
 
 
 
 
 
Loans held for sale
15,606

 
15,606

 
—

 
15,606

 
—

 
 
 
 
 
 
 
 
 
 
Loans and leases receivable:
 
 
 
 
 
 
 
 
 
Commercial finance
1,509,849

 
1,506,969

 
—

 
—

 
1,506,969

Consumer finance
335,361

 
342,931

 
—

 
—

 
342,931

Tax services
1,073

 
1,073

 
—

 
—

 
1,073

Total National Lending
1,846,283

 
1,850,973

 
—

 
—

 
1,850,973

Commercial and multi-family real estate
748,579

 
731,291

 
—

 
—

 
731,291

One to four family residential mortgage
223,482

 
220,697

 
—

 
—

 
220,697

Agricultural
60,498

 
58,849

 
—

 
—

 
58,849

Commercial operating
42,311

 
41,912

 
—

 
—

 
41,912

Consumer
23,836

 
24,033

 
—

 
—

 
24,033

Total Community Banking
1,098,706

 
1,076,782

 
—

 
—

 
1,076,782

Total loans and leases receivable
2,944,989

 
2,927,755

 
—

 
—

 
2,927,755

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
23,400

 
23,400

 
—

 
23,400

 
—

Accrued interest receivable
22,016

 
22,016

 
22,016

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 
 
 
 
 
 
 
 
 
Non-interest bearing demand deposits
2,405,274

 
2,405,274

 
2,405,274

 
—

 
—

Interest bearing demand deposits, savings, and money markets
218,347

 
218,347

 
218,347

 
—

 
—

Certificates of deposits
276,180

 
273,800

 
—

 
273,800

 
—

Wholesale non-maturing deposits
94,384

 
94,384

 
94,384

 
—

 
—

Wholesale certificates of deposits
1,436,802

 
1,432,146

 
—

 
1,432,146

 
—

Total deposits
4,430,987

 
4,423,951

 
2,718,005

 
1,705,946

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
—

 
—

 
—

 
—

 
—

Federal funds purchased
422,000

 
422,000

 
422,000

 
—

 
—

Securities sold under agreements to repurchase
3,694

 
3,694

 
—

 
3,694

 
—

Capital leases
1,876

 
1,876

 
—

 
1,876

 
—

Trust preferred securities
13,661

 
13,866

 
—

 
13,866

 
—

Subordinated debentures
73,491

 
75,563

 
—

 
75,563

 
—

Accrued interest payable
7,794

 
7,794

 
7,794

 
—

 
—

 
September 30, 2017
 
Carrying
Amount
 
Estimated
Fair Value
 
Level 1
 
Level 2
 
Level 3
 
(Dollars in Thousands)
Financial assets
 
 
 
 
 
 
 
 
 
Cash and cash equivalents
$
1,267,586

 
$
1,267,586

 
$
1,267,586

 
$
—

 
$
—

 
 
 
 
 
 
 
 
 
 
Securities available for sale
1,693,431

 
1,693,431

 
1,445

 
1,691,986

 
—

Securities held to maturity
563,529

 
564,185

 
—

 
564,185

 
—

Total securities
2,256,960

 
2,257,616

 
1,445

 
2,256,171

 
—

 
 
 
 
 
 
 
 
 
 
Loans and leases receivable:
 

 
 

 
 

 
 

 
 

Commercial finance
255,308

 
255,813

 
—

 
—

 
255,813

Consumer finance
140,229

 
141,958

 
—

 
—

 
141,958

Tax services
192

 
192

 
—

 
—

 
192

Total National Lending
395,729

 
397,963

 
—

 
—

 
397,963

Commercial and multi-family real estate
585,510

 
576,330

 
—

 
—

 
576,330

One to four family residential mortgage
196,706

 
196,970

 
—

 
—

 
196,970

Agricultural
95,394

 
94,454

 
—

 
—

 
94,454

Commercial operating
30,718

 
30,682

 
—

 
—

 
30,682

Consumer
22,775

 
22,003

 
—

 
—

 
22,003

Total Community Banking
931,103

 
920,439

 
—

 
—

 
920,439

Total loans and leases receivable
1,326,832

 
1,318,402

 
—

 
—

 
1,318,402

 
 
 
 
 
 
 
 
 
 
Federal Home Loan Bank stock
61,123

 
61,123

 
—

 
61,123

 
—

Accrued interest receivable
19,380

 
19,380

 
19,380

 
—

 
—

 
 
 
 
 
 
 
 
 
 
Financial liabilities
 

 
 

 
 

 
 

 
 

Non-interest bearing demand deposits
2,454,057

 
2,454,057

 
2,454,057

 
—

 
—

Interest bearing demand deposits, savings, and money markets
169,557

 
169,557

 
169,557

 
—

 
—

Certificates of deposit
123,637

 
123,094

 
—

 
123,094

 
—

Wholesale non-maturing deposits
18,245

 
18,245

 
18,245

 
—

 
—

Wholesale certificates of deposits
457,928

 
457,509

 
—

 
457,509

 
—

Total deposits
3,223,424

 
3,222,462

 
2,641,859

 
580,603

 
—

 
 
 
 
 
 
 
 
 
 
Advances from Federal Home Loan Bank
415,000

 
415,003

 
—

 
415,003

 
—

Federal funds purchased
987,000

 
987,000

 
987,000

 
—

 
—

Securities sold under agreements to repurchase
2,472

 
2,472

 
—

 
2,472

 
—

Capital leases
1,938

 
1,938

 
—

 
1,938

 
—

Trust preferred
10,310

 
10,447

 
—

 
10,447

 
—

Subordinated debentures
73,347

 
76,500

 
—

 
76,500

 
—

Accrued interest payable
2,280

 
2,280

 
2,280

 
—

 
—
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS (Tables)
 12 Months Ended
Sep. 30, 2018
Goodwill and Intangible Assets Disclosure [Abstract]  
Changes in Carrying Amount of Goodwill and Intangible Assets
The carrying amount of the Company’s goodwill and intangible assets for the years ended September 30, 2018 and 2017 are as follows:
 
 
September 30,
 
2018
 
2017
 
(Dollars in Thousands)
Goodwill
 
Beginning balance
$
98,723

 
$
36,928

Acquisitions during the period
204,547

 
61,795

Write-offs during the period
—

 
—

Ending balance
$
303,270

 
$
98,723




The Company completed an annual goodwill impairment test for the fiscal year ended September 30, 2018. Based on the results of the qualitative analysis, it was identified that it was more likely than not the fair value of the goodwill recorded exceeded the current carrying value. The Company concluded a quantitative analysis was not required and no impairment existed.
 
 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

Acquisitions during the period
3,634

 
—

 
24,278

 
449

 
28,361

Amortization during the period
(698
)
 
(485
)
 
(7,530
)
 
(928
)
 
(9,641
)
Write-offs during the period
—

 
—

 
—

 
(179
)
 
(179
)
Balance as of September 30, 2018
$
12,987

 
$
1,297

 
$
48,455

 
$
7,980

 
$
70,719

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
14,624

 
$
2,480

 
$
82,088

 
$
10,951

 
$
110,143

Accumulated amortization
$
(1,637
)
 
$
(1,183
)
 
$
(23,385
)
 
$
(2,263
)
 
$
(28,468
)
Accumulated impairment


 


 
$
(10,248
)
 
$
(708
)
 
$
(10,956
)
Balance as of September 30, 2018
$
12,987

 
$
1,297

 
$
48,455

 
$
7,980

 
$
70,719

(1) Book amortization period of 5-15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3-5 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.


 
Trademark (1)
 
Non-Compete (2)
 
Customer Relationships (3)
 
Technology/Other (4)
 
Total
Intangibles
 
Balance as of September 30, 2016
$
5,149

 
$
127

 
$
20,590

 
$
3,055

 
$
28,921

Acquisitions during the period
5,500

 
2,180

 
31,770

 
6,947

 
46,397

Amortization during the period
(598
)
 
(525
)
 
(10,405
)
 
(835
)
 
(12,363
)
Write-offs during the period
—

 
—

 
(10,248
)
 
(529
)
 
(10,777
)
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178

 
 
 
 
 
 
 
 
 
 
Balance upon acquisition
$
10,990

 
$
2,480

 
$
57,810

 
$
10,502

 
$
81,782

Accumulated amortization
(939
)
 
(698
)
 
(15,855
)
 
(1,335
)
 
(18,827
)
Accumulated impairment
—

 
—

 
(10,248
)
 
(529
)
 
(10,777
)
Balance as of September 30, 2017
$
10,051

 
$
1,782

 
$
31,707

 
$
8,638

 
$
52,178


(1) Book amortization period of 15 years. Amortized using the straight line and accelerated methods.
(2) Book amortization period of 3 years. Amortized using the straight line method.
(3) Book amortization period of 10-30 years. Amortized using the accelerated method.
(4) Book amortization period of 3-20 years. Amortized using the straight line method.

The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment. The Company recorded an immaterial impairment charge during the fourth quarter of fiscal 2018 and a $10.2 million intangible impairment charge during the fourth quarter of fiscal 2017 related to the non-renewal of the H&R Block relationship.

The weighted-average amortization period, by major intangible asset class and in total, for the acquisition during fiscal year 2018 were as follows:
 
Weighted Average Amortization Period
Intangible
Crestmark
Trademark
10.0
Customer Relationships
10.0
Technology/Other
3.0
Total
9.9
Anticipated Future Amortization of Intangibles
The anticipated future amortization of intangibles is as follows:
 
Year ended
 
(Dollars in Thousands)
2019
$
17,733

2020
11,017

2021
8,559

2022
6,404

2023
5,077

Thereafter
21,929

Total anticipated intangible amortization
$
70,719
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Oct. 05, 2018
Sep. 30, 2018
USD ($)
$ / shares
Jun. 30, 2018
$ / shares
Mar. 31, 2018
$ / shares
Dec. 31, 2017
$ / shares
Sep. 30, 2017
USD ($)
$ / shares
Jun. 30, 2017
$ / shares
Mar. 31, 2017
$ / shares
Dec. 31, 2016
$ / shares
Sep. 30, 2016
$ / shares
Jun. 30, 2016
$ / shares
Mar. 31, 2016
$ / shares
Dec. 31, 2015
$ / shares
Sep. 30, 2018
USD ($)
segment
joint_venture
$ / shares
Sep. 30, 2017
USD ($)
$ / shares
Sep. 30, 2016
USD ($)
$ / shares
Oct. 01, 2018
USD ($)
PRINCIPLES OF CONSOLIDATION [Abstract]                                  
Percentage of interest in subsidiary   100.00%                       100.00%      
NATURE OF BUSINESS AND INDUSTRY SEGMENT INFORMATION [Abstract]                                  
Number of reporting segments | segment                           3      
CASH AND CASH EQUIVALENTS AND FEDERAL FUNDS SOLD [Abstract]                                  
Terms of FHLB advances                           90 days      
Reserve balances in cash or on deposit with FRB (Federal Reserve Bank)   $ 16,500       $ 1,500               $ 16,500 $ 1,500    
Investment Holdings [Line Items]                                  
Number of joint venture LLC's | joint_venture                           5      
Joint venture ownership interest in each of the joint ventures                           80.00%      
Retained earnings   213,048       167,164               $ 213,048 167,164    
SECURITIES [Abstract]                                  
Recorded balance   5,413       0               5,413 0    
Other than temporary impairment                           0 0 $ 0  
Transfers                                  
Aggregate unpaid balance of loans serviced for others   $ 134,000       $ 21,800               $ 134,000 $ 21,800    
ALLOWANCE FOR LOAN LOSSES [Abstract]                                  
Look back period                           7 years      
Property, Plant and Equipment [Line Items]                                  
Basic (in dollars per share) | $ / shares   $ 0.24 $ 0.22 $ 1.07 $ 0.15 $ 0.07 $ 0.35 $ 1.15 $ 0.05 $ 0.23 $ 0.35 $ 0.57 $ 0.16 $ 1.68 [1] $ 1.62 [1] $ 1.31 [1]  
Diluted (in dollars per share) | $ / shares   $ 0.24 $ 0.22 $ 1.06 $ 0.15 $ 0.07 $ 0.35 $ 1.14 $ 0.05 $ 0.23 $ 0.35 $ 0.56 $ 0.16 $ 1.67 [1] $ 1.61 [1] $ 1.30 [1]  
Net change in loans receivable                           $ 493,381 $ 274,840 $ 217,985  
FRB [Member]                                  
Investment Holdings [Line Items]                                  
Interest bearing deposits   $ 4,200                       4,200      
FHLB [Member]                                  
Investment Holdings [Line Items]                                  
Interest bearing deposits   $ 16,000                       $ 16,000      
Common Stock [Member] | Subsequent Event [Member]                                  
Investment Holdings [Line Items]                                  
Stock split, conversion ratio 3                                
Buildings [Member] | Minimum [Member]                                  
Property, Plant and Equipment [Line Items]                                  
Premises, furniture and equipment, estimated useful lives                           10 years      
Buildings [Member] | Maximum [Member]                                  
Property, Plant and Equipment [Line Items]                                  
Premises, furniture and equipment, estimated useful lives                           40 years      
Leasehold Improvements [Member] | Minimum [Member]                                  
Property, Plant and Equipment [Line Items]                                  
Premises, furniture and equipment, estimated useful lives                           2 years      
Leasehold Improvements [Member] | Maximum [Member]                                  
Property, Plant and Equipment [Line Items]                                  
Premises, furniture and equipment, estimated useful lives                           15 years      
Accounting Standards Update 2014-09 [Member] | Subsequent Event [Member]                                  
Investment Holdings [Line Items]                                  
Retained earnings                                 $ 2,000
[1] All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.
v3.10.0.1
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Assets of VIE's) (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Variable Interest Entity [Line Items]        
Cash and cash equivalents $ 99,977 $ 1,267,586 $ 773,830 $ 27,658
Loans and leases receivable 2,944,739 1,325,371    
Allowance for loan and lease losses (13,040) (7,534)    
Accrued interest receivable 22,016 19,380    
Foreclosed real estate and repossessed assets 31,638 292    
Other assets 30,879 12,738    
Total assets 5,835,067 5,228,332 $ 4,006,419  
Accrued expenses and other liabilities 133,838 78,065    
Non-controlling interest 3,574 $ 0    
VIE's Aggregated Disclosure [Member]        
Variable Interest Entity [Line Items]        
Cash and cash equivalents 867      
Loans and leases receivable 131,197      
Allowance for loan and lease losses (145)      
Accrued interest receivable 887      
Rental equipment 99      
Foreclosed real estate and repossessed assets 1,626      
Other assets 3,247      
Total assets 137,778      
Accrued expenses and other liabilities 2,386      
Non-controlling interest 3,574      
Net assets less non-controlling interest $ 131,818      
v3.10.0.1
ACQUISITIONS ACQUISTIONS - Narrative (Details)
$ / shares in Units, $ in Thousands
 9 Months Ended 12 Months Ended
Aug. 01, 2018
USD ($)
shares
Dec. 14, 2016
USD ($)
shares
Nov. 01, 2016
USD ($)
franchise
shares
Jun. 30, 2017
USD ($)
Sep. 30, 2018
USD ($)
Jul. 31, 2018
$ / shares
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Business Acquisition [Line Items]                
Goodwill         $ 303,270   $ 98,723 $ 36,928
Contingent consideration - equity         $ 0   $ (24,142) $ 0
Pre-tax transaction related expenses       $ 800        
Crestmark Bancorp, Inc. [Member]                
Business Acquisition [Line Items]                
Total consideration paid $ 295,773              
Equity interest issued (in shares) | shares 9,919,512              
Share price (in dollars per share) | $ / shares           $ 29.82    
Goodwill $ 204,547              
Acquisition related expenses         9020000      
Net interest income of consolidated entity, actual         $ 19,100      
Net income of consolidated entity, actual         $ 9,700      
Cash 6              
Intangible assets 28,253              
Other assets $ 22,170              
EPS Financial, LLC [Member]                
Business Acquisition [Line Items]                
Total consideration paid     $ 48,384          
Equity interest issued (in shares) | shares     1,107,537          
Goodwill     $ 30,375          
Cash     21,877          
Intangible assets     17,930          
Pre-tax transaction related expenses     $ 500          
Number of ERO's | franchise     10,000          
Other assets     $ 79          
Specialty Consumer Services [Member]                
Business Acquisition [Line Items]                
Total consideration paid   $ 59,731            
Equity interest issued (in shares) | shares   339,984            
Goodwill   $ 31,419            
Cash   7,548            
Contingent consideration, performance target earnout payments   $ 17,500            
Contingent consideration, performance target earnout payments (in shares) | shares   793,293            
Intangible assets   $ 28,310            
Contingent consideration, performance target earnout payments, percent   100.00%            
Contingent consideration - cash   $ 17,252            
Contingent consideration - equity   24,142            
Other assets   $ 2            
v3.10.0.1
ACQUISITIONS - Schedule of Assets Acquired and Liabilities Assumed (Details) - USD ($)
$ in Thousands
Aug. 01, 2018
Dec. 14, 2016
Nov. 01, 2016
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Fair value of consideration paid            
Contingent consideration - equity       $ 0 $ (24,142) $ 0
Fair value of liabilities assumed            
Goodwill resulting from acquisition       303,270 $ 98,723 $ 36,928
Crestmark Bancorp, Inc. [Member]            
Fair value of consideration paid            
Cash $ 6          
Stock issued 295,767          
Total consideration paid 295,773          
Fair value of assets acquired            
Cash and cash equivalents 58,858          
Investment & MBS securities 25,349          
Loan and lease receivables held for sale 17,494          
Loan and lease receivables held for investment 1,046,010          
Federal Home Loan Bank stock, at cost 33          
Accrued interest receivable 5,381          
Premises, furniture, and equipment 18,458          
Rental equipment 98,977          
Foreclosed real estate and repossessed assets 1,209          
Intangible assets 28,253          
Other assets 22,170          
Total assets 1,322,192          
Fair value of liabilities assumed            
Total deposits 1,120,666          
Time certificates of deposits 295,590          
Wholesale certificates of deposits 825,076          
Short-term debt 11,642          
Long-term debt 3,609     $ 3,400    
Accrued interest payable 3,581          
Accrued expenses and other liabilities 88,301          
Total liabilities assumed 1,227,799          
Total non-controlling interest 3,167          
Fair value of net assets acquired 91,226          
Goodwill resulting from acquisition $ 204,547          
Specialty Consumer Services [Member]            
Fair value of consideration paid            
Cash   $ 7,548        
Stock issued   10,789        
Paid Consideration   18,337        
Contingent consideration - cash   17,252        
Contingent consideration - equity   24,142        
Contingent consideration payable   41,394        
Total consideration paid   59,731        
Fair value of assets acquired            
Intangible assets   28,310        
Other assets   2        
Total assets   28,312        
Fair value of net assets acquired   28,312        
Fair value of liabilities assumed            
Goodwill resulting from acquisition   $ 31,419        
EPS Financial, LLC [Member]            
Fair value of consideration paid            
Cash     $ 21,877      
Stock issued     26,507      
Total consideration paid     48,384      
Fair value of assets acquired            
Intangible assets     17,930      
Other assets     79      
Total assets     18,009      
Fair value of net assets acquired     18,009      
Fair value of liabilities assumed            
Goodwill resulting from acquisition     $ 30,375      
v3.10.0.1
ACQUISITIONS ACQUISITONS - Proforma Information (Details) - Crestmark Bancorp, Inc. [Member] - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Business Acquisition [Line Items]    
Net interest income $ 206,822 $ 181,184
Net income attributable to parent $ 74,640 $ 64,390
Basic earnings per share (in dollars per share) $ 1.91 $ 1.71
Diluted earnings per share (in dollars per share) $ 1.91 $ 1.70
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET - Summary of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable $ 2,944,989 $ 1,326,832
Less:    
Allowance for Loan Losses (13,040) (7,534)
Net Deferred Loan Origination Fees (250) (1,461)
Total Loans Receivable, Net 2,931,699 1,317,837
National Lending [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 1,846,283 395,729
National Lending [Member] | Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 1,509,849 255,308
National Lending [Member] | Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 335,361 140,229
National Lending [Member] | Tax Services [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 1,073 192
Community Banking [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 1,098,706 931,103
Community Banking [Member] | Commercial Operating [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 42,311 30,718
Community Banking [Member] | Consumer [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 23,836 22,775
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 748,579 585,510
Community Banking [Member] | 1-4 Family Real Estate [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable 223,482 196,706
Community Banking [Member] | Agricultural [Member]    
Accounts, Notes, Loans and Financing Receivable [Line Items]    
Total gross loans and leases receivable $ 60,498 $ 95,394
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET - Allowance for Loan Losses and Recorded Investment in Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2018
Sep. 30, 2017
Allowance for Credit Losses [Roll Forward]          
Beginning balance $ 7,534 $ 5,635 $ 6,255    
Provision (recovery) for loan losses 29,433 10,589 4,605    
Recoveries 2,037 307 147    
Charge offs (25,964) (8,997) (5,372)    
Ending balance 13,040 7,534 5,635    
Ending balance: individually evaluated for impairment       $ 588 $ 0
Ending balance: collectively evaluated for impairment       12,452 7,534
Total 7,534 5,635 6,255 13,040 7,534
Loans:          
Ending balance: individually evaluated for impairment       15,611 1,181
Ending balance: collectively evaluated for impairment       2,929,378 1,325,651
Total loans receivable       2,944,989 1,326,832
Unallocated [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 527 553      
Provision (recovery) for loan losses (527) (26)      
Recoveries 0 0      
Charge offs   0      
Ending balance 0 527 553    
Ending balance: individually evaluated for impairment         0
Ending balance: collectively evaluated for impairment         527
Total 527 553 553 0 527
Loans:          
Ending balance: individually evaluated for impairment         0
Ending balance: collectively evaluated for impairment         0
Total loans receivable         0
National Lending [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 805 595      
Provision (recovery) for loan losses 28,433 8,388      
Recoveries 1,622 290      
Charge offs (25,888) (8,468)      
Ending balance 4,972 805 595    
Ending balance: individually evaluated for impairment       588 0
Ending balance: collectively evaluated for impairment       4,384 805
Total 805 595 595 4,972 805
Loans:          
Ending balance: individually evaluated for impairment       13,612 0
Ending balance: collectively evaluated for impairment       1,832,671 395,729
Total loans receivable       1,846,283 395,729
National Lending [Member] | Commercial Operating [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 800 589      
Provision (recovery) for loan losses 1,976 776      
Recoveries 1,169 61      
Charge offs (2,643) (626)      
Ending balance 1,302 800 589    
Ending balance: individually evaluated for impairment       588 0
Ending balance: collectively evaluated for impairment       714 800
Total 800 589 589 1,302 800
Loans:          
Ending balance: individually evaluated for impairment       13,612 0
Ending balance: collectively evaluated for impairment       1,496,237 255,308
Total loans receivable       1,509,849 255,308
National Lending [Member] | Consumer [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 0 0      
Provision (recovery) for loan losses 5,113 0      
Recoveries 0 0      
Charge offs (1,443) 0      
Ending balance 3,670 0 0    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       3,670 0
Total 0 0 0 3,670 0
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       335,361 140,229
Total loans receivable       335,361 140,229
National Lending [Member] | Tax Services [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 5 6      
Provision (recovery) for loan losses 21,344 7,612      
Recoveries 453 229      
Charge offs (21,802) (7,842)      
Ending balance 0 5 6    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       0 5
Total 5 6 6 0 5
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       1,073 192
Total loans receivable       1,073 192
Community Banking [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 6,203 4,487      
Provision (recovery) for loan losses 1,527 2,228      
Recoveries 414 17      
Charge offs (76) (529)      
Ending balance 8,068 6,203 4,487    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       8,068 6,203
Total 6,203 4,487 4,487 8,068 6,203
Loans:          
Ending balance: individually evaluated for impairment       1,999 0
Ending balance: collectively evaluated for impairment       1,096,707 931,103
Total loans receivable       1,098,706 931,103
Community Banking [Member] | Commercial Operating [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 150 110      
Provision (recovery) for loan losses 23 425      
Recoveries 0 5      
Charge offs 0 (390)      
Ending balance 173 150 110    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       173 150
Total 150 110 110 173 150
Loans:          
Ending balance: individually evaluated for impairment       46 0
Ending balance: collectively evaluated for impairment       42,265 30,718
Total loans receivable       42,311 30,718
Community Banking [Member] | Consumer [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 6 51      
Provision (recovery) for loan losses 64 (44)      
Recoveries 3 0      
Charge offs (31) (1)      
Ending balance 42 6 51    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       42 6
Total 6 51 51 42 6
Loans:          
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       23,836 22,775
Total loans receivable       23,836 22,775
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 2,670 2,198      
Provision (recovery) for loan losses 3,377 610      
Recoveries 0 0      
Charge offs 0 (138)      
Ending balance 6,047 2,670 2,198    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       6,047 2,670
Total 2,670 2,198 2,198 6,047 2,670
Loans:          
Ending balance: individually evaluated for impairment       405 1,109
Ending balance: collectively evaluated for impairment       748,174 584,401
Total loans receivable       748,579 585,510
Community Banking [Member] | 1-4 Family Real Estate [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 803 654      
Provision (recovery) for loan losses (168) 149      
Recoveries 0 0      
Charge offs (45) 0      
Ending balance 590 803 654    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       590 803
Total 803 654 654 590 803
Loans:          
Ending balance: individually evaluated for impairment       94 72
Ending balance: collectively evaluated for impairment       223,388 196,634
Total loans receivable       223,482 196,706
Community Banking [Member] | Agricultural [Member]          
Allowance for Credit Losses [Roll Forward]          
Beginning balance 2,574 1,474      
Provision (recovery) for loan losses (1,769) 1,088      
Recoveries 411 12      
Charge offs 0 0      
Ending balance 1,216 2,574 1,474    
Ending balance: individually evaluated for impairment       0 0
Ending balance: collectively evaluated for impairment       1,216 2,574
Total $ 2,574 $ 1,474 $ 1,474 1,216 2,574
Loans:          
Ending balance: individually evaluated for impairment       1,454 0
Ending balance: collectively evaluated for impairment       59,044 95,394
Total loans receivable       $ 60,498 $ 95,394
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET - Asset Classification of Loans (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable $ 2,944,989 $ 1,326,832
Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 2,783,536 1,265,560
Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 15,235 17,272
Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 121,639 3,387
Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 24,579 40,613
National Lending [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,846,283 395,729
National Lending [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,716,336 395,729
National Lending [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 116,334 0
National Lending [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 13,613 0
National Lending [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,509,849 255,308
National Lending [Member] | Commercial Operating [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,379,902 255,308
National Lending [Member] | Commercial Operating [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Commercial Operating [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 116,334 0
National Lending [Member] | Commercial Operating [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 13,613 0
National Lending [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 335,361 140,229
National Lending [Member] | Consumer [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 335,361 140,229
National Lending [Member] | Consumer [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Consumer [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Consumer [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Tax Services [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,073 192
National Lending [Member] | Tax Services [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,073 192
National Lending [Member] | Tax Services [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Tax Services [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
National Lending [Member] | Tax Services [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Community Banking [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,098,706 931,103
Community Banking [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 1,067,200 869,831
Community Banking [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 15,235 17,272
Community Banking [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 5,305 3,387
Community Banking [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 10,966 40,613
Community Banking [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 42,311 30,718
Community Banking [Member] | Commercial Operating [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 42,311 30,718
Community Banking [Member] | Commercial Operating [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Community Banking [Member] | Commercial Operating [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Community Banking [Member] | Commercial Operating [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Community Banking [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 23,836 22,775
Community Banking [Member] | Consumer [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 23,580 22,775
Community Banking [Member] | Consumer [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 256 0
Community Banking [Member] | Consumer [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Community Banking [Member] | Consumer [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 0
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 748,579 585,510
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 736,134 574,730
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 12,251 10,200
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 194 201
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 0 379
Community Banking [Member] | 1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 223,482 196,706
Community Banking [Member] | 1-4 Family Real Estate [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 222,883 195,838
Community Banking [Member] | 1-4 Family Real Estate [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 281 525
Community Banking [Member] | 1-4 Family Real Estate [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 239 247
Community Banking [Member] | 1-4 Family Real Estate [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 79 96
Community Banking [Member] | Agricultural [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 60,498 95,394
Community Banking [Member] | Agricultural [Member] | Pass [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 42,292 45,770
Community Banking [Member] | Agricultural [Member] | Watch [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 2,447 6,547
Community Banking [Member] | Agricultural [Member] | Special Mention [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable 4,872 2,939
Community Banking [Member] | Agricultural [Member] | Substandard [Member]    
Financing Receivable, Recorded Investment [Line Items]    
Loans receivable $ 10,887 $ 40,138
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET - Past Due Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable $ 2,944,989 $ 1,326,832
Impaired financing receivable, interest income, accrual method 100  
National Lending [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 1,846,283 395,729
National Lending [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 1,509,849 255,308
National Lending [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 335,361 140,229
National Lending [Member] | Tax Services [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 1,073 192
Community Banking [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 1,098,706 931,103
Community Banking [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 42,311 30,718
Community Banking [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 23,836 22,775
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 748,579 585,510
Community Banking [Member] | 1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 223,482 196,706
Community Banking [Member] | Agricultural [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total loans receivable 60,498 95,394
Accruing and Non-accruing Loans and Lease [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 38,851 45,061
Current 2,906,138 1,281,771
Total loans receivable 2,944,989 1,326,832
Accruing and Non-accruing Loans and Lease [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 24,022 4,686
Accruing and Non-accruing Loans and Lease [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 5,297 3,079
Accruing and Non-accruing Loans and Lease [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 9,532 37,296
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 38,667 9,587
Current 1,807,616 386,142
Total loans receivable 1,846,283 395,729
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 23,917 4,012
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 5,297 2,983
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 9,453 2,592
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 30,406 5,156
Current 1,479,443 250,152
Total loans receivable 1,509,849 255,308
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 20,708 1,509
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 3,702 2,442
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 5,996 1,205
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 7,188 4,431
Current 328,173 135,798
Total loans receivable 335,361 140,229
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 3,209 2,503
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,595 541
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Consumer [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 2,384 1,387
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,073 0
Current 0 192
Total loans receivable 1,073 192
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | National Lending [Member] | Tax Services [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 1,073 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 184 35,474
Current 1,098,522 895,629
Total loans receivable 1,098,706 931,103
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 105 674
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 96
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 79 34,704
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Current 42,311 30,718
Total loans receivable 42,311 30,718
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 45
Current 23,836 22,730
Total loans receivable 23,836 22,775
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 9
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 17
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Consumer [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 19
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 685
Current 748,579 584,825
Total loans receivable 748,579 585,510
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 295
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 390
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 184 449
Current 223,298 196,257
Total loans receivable 223,482 196,706
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 105 370
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 79
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 79 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 34,295
Current 60,498 61,099
Total loans receivable 60,498 95,394
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | 30-59 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | 60-89 Days Past Due [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 0
Accruing and Non-accruing Loans and Lease [Member] | Community Banking [Member] | Agricultural [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Total past due 0 34,295
Non-performing Loans and Leases [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 2,864 685
Total loans receivable 10,201 37,591
Non-performing Loans and Leases [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 7,337 36,906
Non-performing Loans and Leases [Member] | National Lending [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 2,864 0
Total loans receivable 10,122 2,592
Non-performing Loans and Leases [Member] | National Lending [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 7,258 2,592
Non-performing Loans and Leases [Member] | National Lending [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 2,864 0
Total loans receivable 6,665 1,205
Non-performing Loans and Leases [Member] | National Lending [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 3,801 1,205
Non-performing Loans and Leases [Member] | National Lending [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Total loans receivable 2,384 1,387
Non-performing Loans and Leases [Member] | National Lending [Member] | Consumer [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 2,384 1,387
Non-performing Loans and Leases [Member] | National Lending [Member] | Tax Services [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Total loans receivable 1,073 0
Non-performing Loans and Leases [Member] | National Lending [Member] | Tax Services [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 1,073 0
Non-performing Loans and Leases [Member] | Community Banking [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 685
Total loans receivable 79 34,999
Non-performing Loans and Leases [Member] | Community Banking [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 79 34,314
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial Operating [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Total loans receivable 0 0
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial Operating [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Non-performing Loans and Leases [Member] | Community Banking [Member] | Consumer [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Total loans receivable 0 19
Non-performing Loans and Leases [Member] | Community Banking [Member] | Consumer [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 19
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 685
Total loans receivable 0 685
Non-performing Loans and Leases [Member] | Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Non-performing Loans and Leases [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Total loans receivable 79 0
Non-performing Loans and Leases [Member] | Community Banking [Member] | 1-4 Family Real Estate [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 79 0
Non-performing Loans and Leases [Member] | Community Banking [Member] | Agricultural [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans 0 0
Total loans receivable 0 34,295
Non-performing Loans and Leases [Member] | Community Banking [Member] | Agricultural [Member] | Greater Than 90 Days [Member]    
Financing Receivable, Recorded Investment, Past Due [Line Items]    
Non-accrual loans $ 0 $ 34,295
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET - Impaired Loans (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Loans without specific valuation allowance [Abstract]    
Recorded balance $ 10,198 $ 1,181
Unpaid principal balance 10,528 1,181
Loans with a specific valuation allowance [Abstract]    
Recorded balance 5,413 0
Unpaid principal balance 5,413 0
Specific allowance 588 0
Average recorded investment in impaired loans 3,685 1,675
National Lending [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 8,199  
Unpaid principal balance 8,529  
Loans with a specific valuation allowance [Abstract]    
Recorded balance 5,413  
Unpaid principal balance 5,663  
Specific allowance 588  
Average recorded investment in impaired loans 1,134 0
National Lending [Member] | Commercial Operating [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 8,199  
Unpaid principal balance 8,529  
Loans with a specific valuation allowance [Abstract]    
Recorded balance 5,413  
Unpaid principal balance 5,663  
Specific allowance 588  
Average recorded investment in impaired loans 1,134 0
Community Banking [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 1,999 1,181
Unpaid principal balance 1,999 1,181
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 2,551 1,675
Community Banking [Member] | Commercial Operating [Member]    
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 0 202
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 405 1,109
Unpaid principal balance 405 1,109
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 673 883
Community Banking [Member] | 1-4 Family Real Estate [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 94 72
Unpaid principal balance 94 72
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 159 176
Community Banking [Member] | Agricultural [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 1,454  
Unpaid principal balance 1,454  
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans 1,652 414
Community Banking [Member] | Consumer [Member]    
Loans without specific valuation allowance [Abstract]    
Recorded balance 46  
Unpaid principal balance 46  
Loans with a specific valuation allowance [Abstract]    
Average recorded investment in impaired loans $ 67 $ 0
v3.10.0.1
LOANS AND LEASES RECEIVABLE, NET - Troubled Debt Restructured Loans (Details)
$ in Millions
 12 Months Ended
Sep. 30, 2018
USD ($)
loan
Sep. 30, 2017
USD ($)
loan
Community Banking [Member]    
Financing Receivable, Modifications [Line Items]    
Number of loans modified in TDR | loan 10 4
Troubled debt restructuring (TDR's) | $ $ 2.0 $ 0.5
Number of loans modified in TDR, subsequent default | loan 1 0
Loans modified in TDR, subsequent default | $ $ 0.1  
National Lending [Member]    
Financing Receivable, Modifications [Line Items]    
Number of loans modified in TDR | loan 11  
Troubled debt restructuring (TDR's) | $ $ 2.5  
v3.10.0.1
LOAN SERVICING (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Transfers and Servicing [Abstract]      
Mortgage loan portfolios serviced for Fannie Mae $ 2,338 $ 3,162 $ 3,980
SBA/USDA 98,942 0 0
Other 32,726 18,649 15,452
Total $ 134,006 $ 21,811 $ 19,432
v3.10.0.1
EARNINGS PER COMMON SHARE (Details)
 3 Months Ended 12 Months Ended
Oct. 05, 2018
shares
Sep. 30, 2018
USD ($)
$ / shares
Jun. 30, 2018
USD ($)
$ / shares
Mar. 31, 2018
USD ($)
$ / shares
Dec. 31, 2017
USD ($)
$ / shares
Sep. 30, 2017
USD ($)
$ / shares
Jun. 30, 2017
USD ($)
$ / shares
Mar. 31, 2017
USD ($)
$ / shares
Dec. 31, 2016
USD ($)
$ / shares
Sep. 30, 2016
USD ($)
$ / shares
Jun. 30, 2016
USD ($)
$ / shares
Mar. 31, 2016
USD ($)
$ / shares
Dec. 31, 2015
USD ($)
$ / shares
Sep. 30, 2018
USD ($)
$ / shares
shares
Sep. 30, 2017
USD ($)
$ / shares
shares
Sep. 30, 2016
USD ($)
$ / shares
shares
Basic income per common share:                                
Net Income attributable to parent   $ 8,722,000 $ 6,792,000 $ 31,436,000 $ 4,670,000 $ 1,744,000 $ 9,787,000 $ 32,142,000 $ 1,244,000 $ 6,006,000 $ 8,873,000 $ 14,283,000 $ 4,058,000 $ 51,620,000 $ 44,917,000 $ 33,220,000
Weighted average common shares outstanding (in shares)                           $ 30,737,499 $ 27,741,276 $ 25,331,868
Basic income per common share (in dollars per share) | $ / shares   $ 0.24 $ 0.22 $ 1.07 $ 0.15 $ 0.07 $ 0.35 $ 1.15 $ 0.05 $ 0.23 $ 0.35 $ 0.57 $ 0.16 $ 1.68 [1] $ 1.62 [1] $ 1.31 [1]
Diluted income per common share:                                
Net Income attributable to parent   $ 8,722,000 $ 6,792,000 $ 31,436,000 $ 4,670,000 $ 1,744,000 $ 9,787,000 $ 32,142,000 $ 1,244,000 $ 6,006,000 $ 8,873,000 $ 14,283,000 $ 4,058,000 $ 51,620,000 $ 44,917,000 $ 33,220,000
Weighted average common shares outstanding (in shares)                           30,737,499 27,741,276 25,331,868
Outstanding options - based upon the two-class method (in shares)                           $ 115,551 $ 166,956 $ 160,170
Weighted average diluted common shares outstanding (in shares) | shares                           30,853,050 27,908,232 25,492,038
Diluted income per common share (in dollars per share) | $ / shares   $ 0.24 $ 0.22 $ 1.06 $ 0.15 $ 0.07 $ 0.35 $ 1.14 $ 0.05 $ 0.23 $ 0.35 $ 0.56 $ 0.16 $ 1.67 [1] $ 1.61 [1] $ 1.30 [1]
Subsequent Event [Member] | Common Stock [Member]                                
Earnings Per Share, Basic, by Common Class, Including Two Class Method [Line Items]                                
Stock split, conversion ratio 3                              
Stock Issued, stock split (in shares) | shares 39,200,000.0                              
[1] All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.
v3.10.0.1
SECURITIES SECURITIES - Narrative (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2018
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Dec. 31, 2017
Debt Securities, Available-for-sale [Line Items]          
Investment securities held to maturity $ (164,304) $ (164,304) $ (449,840)    
Mortgage-backed securities held to maturity (7,850) (7,850) (113,689)    
Proceeds from sale of lower-yielding AFS securities 260,000 596,758 457,306 $ 285,508  
Securities pledged as collateral for public funds on deposit 8,000 8,000 5,700    
Securities pledged as collateral for individual, trust, and estate deposits 5,900 5,900 3,800    
Federal Home Loan Bank stock, at cost 23,400 23,400 61,123    
Pledged securities against specific FHLB advances, fair value 1,060,000 1,060,000 1,070,000    
Loans pledged as collateral 756,000 756,000 628,000    
Accounting Standards Update 2017-12 [Member]          
Debt Securities, Available-for-sale [Line Items]          
Investment securities held to maturity $ 40,900 40,900     $ 204,700
Mortgage-backed securities held to maturity         $ 101,300
Federal Home Loan Bank [Member]          
Debt Securities, Available-for-sale [Line Items]          
Interest and dividend income from FLHB   $ 1,100 $ 500 $ 600  
v3.10.0.1
SECURITIES - Schedule of Securities Available (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Available For Sale    
Mortgage-back securities $ 364,065 $ 586,454
Available-for-sale securities [Abstract]    
Amortized cost 1,895,802 1,680,307
Gross unrealized gains 4,096 19,884
Gross unrealized (losses) (47,873) (6,760)
Total securities 1,852,025 1,693,431
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 950,499 518,797
OVER 12 MONTHS, Fair Value 601,825 106,140
TOTAL, Fair Value 1,552,324 624,937
LESS THAN 12 MONTHS, Unrealized (Losses) (18,629) (4,512)
OVER 12 MONTHS, Unrealized (Losses) (29,244) (2,248)
TOTAL, Unrealized (Losses) (47,873) (6,760)
AMORTIZED COST [Abstract]    
Due in one year or less 2,532 0
Due after one year through five years 41,415 36,586
Due after five years through ten years 352,099 347,831
Due after ten years 1,118,283 705,963
Total Amortized Cost 1,514,329 1,090,380
Mortgage-backed securities 378,301 588,918
Common equities and mutual funds 3,172 1,009
Amortized cost 1,895,802 1,680,307
FAIR VALUE [Abstract]    
Due in one year or less 2,529 0
Due after one year through five years 41,504 37,674
Due after five years through ten years 350,143 358,198
Due after ten years 1,089,984 709,660
Total Fair Value 1,484,160 1,105,532
Mortgage-back securities 364,065 586,454
Common equities and mutual funds 3,800 1,445
Total securities 1,852,025 1,693,431
Held To Maturity    
Amortized cost 172,154 563,529
Gross unrealized gains   4,901
Gross unrealized (losses) (11,180) (4,245)
Fair value 160,974 564,185
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 6,178 315,838
OVER 12 MONTHS, Fair Value 154,796 10,295
TOTAL, Fair Value 160,974 326,133
LESS THAN 12 MONTHS, Unrealized (Losses) (287) (4,022)
OVER 12 MONTHS, Unrealized (Losses) (10,893) (223)
TOTAL, Unrealized (Losses) (11,180) (4,245)
AMORTIZED COST [Abstract]    
Due in one year or less   1,483
Due after one year through five years   17,926
Due after five years through ten years   144,996
Due after ten years 164,304 285,435
Total Amortized Cost 164,304 449,840
Mortgage-backed securities 7,850 113,689
Amortized cost 172,154 563,529
FAIR VALUE [Abstract]    
Due in one year or less   1,480
Due after one year through five years   18,160
Due after five years through ten years   147,832
Due after ten years 153,546 284,257
Total Fair Value 153,546 451,729
Mortgage-backed securities 7,428 112,456
Total securities 160,974 564,185
Small Business Administration Securities [Member]    
Available For Sale    
Amortized cost 45,591 57,046
Gross unrealized gains 1 825
Gross unrealized (losses) (1,255) 0
Mortgage-back securities 44,337 57,871
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 43,097  
OVER 12 MONTHS, Fair Value 0  
TOTAL, Fair Value 43,097  
LESS THAN 12 MONTHS, Unrealized (Losses) (1,255)  
OVER 12 MONTHS, Unrealized (Losses) 0  
TOTAL, Unrealized (Losses) (1,255)  
FAIR VALUE [Abstract]    
Mortgage-back securities 44,337 57,871
US States and Political Subdivisions Debt Securities [Member]    
Available For Sale    
Amortized cost 17,154  
Gross unrealized gains 49  
Gross unrealized (losses) (293)  
Mortgage-back securities 16,910  
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months 11,036  
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss (279)  
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer 881  
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss (14)  
Debt Securities, Available-for-sale, Unrealized Loss Position 11,917  
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss (293)  
FAIR VALUE [Abstract]    
Mortgage-back securities 16,910  
Held To Maturity    
Amortized cost   19,247
Gross unrealized gains   157
Gross unrealized (losses)   (36)
Fair value   19,368
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value   1,364
OVER 12 MONTHS, Fair Value   4,089
TOTAL, Fair Value   5,453
LESS THAN 12 MONTHS, Unrealized (Losses)   (6)
OVER 12 MONTHS, Unrealized (Losses)   (30)
TOTAL, Unrealized (Losses)   (36)
AMORTIZED COST [Abstract]    
Amortized cost   19,247
FAIR VALUE [Abstract]    
Total securities   19,368
Non-Bank Qualified Obligation of States And Political Subdivisions [Member]    
Available For Sale    
Amortized cost 1,140,884 938,883
Gross unrealized gains 826 14,983
Gross unrealized (losses) (31,825) (3,037)
Mortgage-back securities 1,109,885 950,829
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 626,693 280,900
OVER 12 MONTHS, Fair Value 358,095 5,853
TOTAL, Fair Value 984,788 286,753
LESS THAN 12 MONTHS, Unrealized (Losses) (13,539) (2,887)
OVER 12 MONTHS, Unrealized (Losses) (18,286) (150)
TOTAL, Unrealized (Losses) (31,825) (3,037)
FAIR VALUE [Abstract]    
Mortgage-back securities 1,109,885 950,829
Held To Maturity    
Amortized cost 164,304 430,593
Gross unrealized gains 0 4,744
Gross unrealized (losses) (10,758) (2,976)
Fair value 153,546 432,361
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 6,178 202,018
OVER 12 MONTHS, Fair Value 147,368 6,206
TOTAL, Fair Value 153,546 208,224
LESS THAN 12 MONTHS, Unrealized (Losses) (287) (2,783)
OVER 12 MONTHS, Unrealized (Losses) (10,471) (193)
TOTAL, Unrealized (Losses) (10,758) (2,976)
AMORTIZED COST [Abstract]    
Amortized cost 164,304 430,593
FAIR VALUE [Abstract]    
Total securities 153,546 432,361
Asset-backed Securities [Member]    
Available For Sale    
Amortized cost 310,700 94,451
Gross unrealized gains 2,585 2,381
Gross unrealized (losses) (257) 0
Mortgage-back securities 313,028 96,832
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 146,638  
OVER 12 MONTHS, Fair Value 0  
TOTAL, Fair Value 146,638  
LESS THAN 12 MONTHS, Unrealized (Losses) (257)  
OVER 12 MONTHS, Unrealized (Losses) 0  
TOTAL, Unrealized (Losses) (257)  
FAIR VALUE [Abstract]    
Mortgage-back securities 313,028 96,832
Collateralized Mortgage Backed Securities [Member]    
Available For Sale    
Amortized cost 378,301 588,918
Gross unrealized gains 0 1,259
Gross unrealized (losses) (14,236) (3,723)
Mortgage-back securities 364,065 586,454
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 121,217 237,897
OVER 12 MONTHS, Fair Value 242,849 100,287
TOTAL, Fair Value 364,066 338,184
LESS THAN 12 MONTHS, Unrealized (Losses) (3,292) (1,625)
OVER 12 MONTHS, Unrealized (Losses) (10,944) (2,098)
TOTAL, Unrealized (Losses) (14,236) (3,723)
FAIR VALUE [Abstract]    
Mortgage-back securities 364,065 586,454
Held To Maturity    
Amortized cost 7,850 113,689
Gross unrealized gains 0 0
Gross unrealized (losses) (422) (1,233)
Fair value 7,428 112,456
Held-to-maturity securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 112,456
OVER 12 MONTHS, Fair Value 7,428 0
TOTAL, Fair Value 7,428 112,456
LESS THAN 12 MONTHS, Unrealized (Losses) 0 (1,233)
OVER 12 MONTHS, Unrealized (Losses) (422) 0
TOTAL, Unrealized (Losses) (422) (1,233)
AMORTIZED COST [Abstract]    
Amortized cost 7,850 113,689
FAIR VALUE [Abstract]    
Total securities 7,428 112,456
Debt Securities [Member]    
Available For Sale    
Amortized cost 1,892,630 1,679,298
Gross unrealized gains 3,461 19,448
Gross unrealized (losses) (47,866) (6,760)
Mortgage-back securities 1,848,225 1,691,986
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 948,681  
OVER 12 MONTHS, Fair Value 601,825  
TOTAL, Fair Value 1,550,506  
LESS THAN 12 MONTHS, Unrealized (Losses) (18,622)  
OVER 12 MONTHS, Unrealized (Losses) (29,244)  
TOTAL, Unrealized (Losses) (47,866)  
FAIR VALUE [Abstract]    
Mortgage-back securities 1,848,225 1,691,986
Common Equities And Mutual Funds [Member]    
Available For Sale    
Amortized cost 3,172 1,009
Gross unrealized gains 635 436
Gross unrealized (losses) (7) 0
Mortgage-back securities 3,800 1,445
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 1,818  
OVER 12 MONTHS, Fair Value 0  
TOTAL, Fair Value 1,818  
LESS THAN 12 MONTHS, Unrealized (Losses) (7)  
OVER 12 MONTHS, Unrealized (Losses) 0  
TOTAL, Unrealized (Losses) (7)  
FAIR VALUE [Abstract]    
Mortgage-back securities $ 3,800 $ 1,445
v3.10.0.1
SECURITIES - Activities Related to Sale (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Available For Sale      
Proceeds from sales $ 596,758 $ 457,306 $ 285,508
Gross gains on sales 2,551 4,091 1,459
Gross losses on sales 10,728 4,628 1,785
Net loss on available for sale securities (8,177) (537) (326)
Held To Maturity      
Net carrying amount of securities sold 0 5,826 0
Gross realized gain on sales 0 92 0
Gross realized losses on sales 0 48 0
Net gain on held to maturity securities $ 0 $ 44 $ 0
v3.10.0.1
PREMISES, FURNITURE, AND EQUIPMENT, NET (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 88,988 $ 61,413  
Less: accumulated depreciation and amortization (48,530) (42,093)  
Net book value 40,458 19,320  
Depreciation expense of premises, furniture, and equipment 5,700 5,500 $ 5,400
Amortization expense on capitalized leases 100 100 $ 200
Land [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 2,932 1,578  
Buildings [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 27,359 10,642  
Furniture, Fixtures, and Equipment [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross 56,438 46,934  
Capitalized Leases [Member]      
Property, Plant and Equipment [Line Items]      
Premises, furniture, and equipment, gross $ 2,259 $ 2,259  
v3.10.0.1
TIME CERTIFICATES OF DEPOSITS (Details) - USD ($)
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
IRA deposit accounts permanently insured by DIF under management of FDIC $ 250,000  
Time certificates of deposits in denominations of $250,000 or more 163,300,000 $ 85,200,000
Time Deposits, Fiscal Year Maturity [Abstract]    
2019 1,562,801,000  
2020 125,581,000  
2021 16,623,000  
2022 6,929,000  
2023 1,048,000  
Total Certificates 1,712,982,000  
Wholesale deposits 1,531,186,000 $ 476,173,000
Non-IRA deposits accounts permanently insured under Dodd-Frank act by DIF under management of FDIC 250,000  
Wholesale Deposits [Member]    
Time Deposits, Fiscal Year Maturity [Abstract]    
Wholesale deposits $ 1,440,000,000  
v3.10.0.1
SHORT TERM DEBT AND LONG TERM DEBT SHORT TERM DEBT AND LONG TERM DEBT - Short Term Debt (Details)
 12 Months Ended
Sep. 30, 2018
USD ($)
Lease
Sep. 30, 2017
USD ($)
Short-term Debt [Line Items]    
Short-term debt $ 425,759,000 $ 1,404,534,000
Pledged securities against specific FHLB advances, fair value 1,060,000,000 1,070,000,000
Loans pledged as collateral $ 756,000,000 628,000,000
Number of capital leases | Lease 3  
Number of equipment leases | Lease 2  
Number of property leases | Lease 1  
Leases, current $ 64,818  
Securities sold under agreements to repurchase, total 3,700,000 2,500,000
Federal Funds Purchased and Securities Sold under Agreements to Repurchase [Abstract]    
Highest month-end balance 3,740,000 3,782,000
Average balance $ 2,557,000 $ 2,225,000
Weighted average interest rate for the year 2.05% 0.98%
Weighted average interest rate at year end 2.48% 1.59%
Securities pledged as collateral for securities sold under agreement to repurchase, fair value $ 13,900,000 $ 9,300,000
Overnight federal funds purchased [Member]    
Short-term Debt [Line Items]    
Short-term debt 422,000,000 987,000,000
Short-term FHLB advances [Member]    
Short-term Debt [Line Items]    
Short-term debt 0 415,000,000
Short-term capital lease [Member]    
Short-term Debt [Line Items]    
Short-term debt 65,000 62,000
Repurchase agreements [Member]    
Short-term Debt [Line Items]    
Short-term debt $ 3,694,000 $ 2,472,000
v3.10.0.1
SHORT TERM DEBT AND LONG TERM DEBT SHORT TERM DEBT AND LONG TERM DEBT - Long Term Debt (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Debt Disclosure [Abstract]    
Long-term FHLB advances $ 0 $ 0
Trust preferred securities 13,661 10,310
Subordinated debentures (net of issuance costs) 73,491 73,347
Long-term capital lease 1,811 1,876
Trust preferred securities, Total 13,661  
Long-term capital lease    
2019 0  
2020 73  
2021 77  
2022 82  
2023 87  
Thereafter 1,492  
Total Long-term capital lease 1,811 1,876
Maturities of Long-term Debt    
Total 2019 0  
Total 2020 73  
Total 2021 77  
Total 2022 82  
Total 2023 87  
Total Thereafter 88,644  
Total Long-term Debt $ 88,963 $ 85,533
v3.10.0.1
SHORT TERM DEBT AND LONG TERM DEBT SHORT TERM DEBT AND LONG TERM DEBT - Long Term Debt Narrative (Details)
 12 Months Ended
Sep. 30, 2018
USD ($)
Period
Lease
$ / shares
shares
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Aug. 01, 2018
USD ($)
Debt Instrument [Line Items]        
Line of Credit Facility, Maximum Borrowing Capacity $ 25,000,000.0      
Cash acquired due to acquisitions 0 $ 0 $ 75,000,000  
Proceeds from debt, net of issuance costs 73,491,000 73,347,000    
Accrued interest payable $ 7,794,000 $ 2,280,000    
Number of capital leases | Lease 3      
Number of equipment leases | Lease 2      
Number of property leases | Lease 1      
Leases expense in next twelve months $ 1,800,000      
First Midwest Financial Capital Trust I [Member]        
Debt Instrument [Line Items]        
Equity method investment, ownership percentage 100.00%      
Issuance of trust preferred securities (in shares) | shares 10,000      
Number of authorized shares of trust preferred securities issued (in shares) | shares 10,310      
Number of consecutive semi-annual periods that interest payments on capital securities may be deferred | Period 10      
Redemption price per capital security (in dollars per share) | $ / shares $ 1,000      
First Midwest Financial Capital Trust I [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Basis spread on variable rate 3.75%      
Effective interest rate 6.35% 5.22%    
5.75% Fixed to Floating Rate Subordinated Debt, Due August 15, 2026 [Member] | Subordinated Debt [Member]        
Debt Instrument [Line Items]        
Cash acquired due to acquisitions $ 75,000,000      
Interest rate, stated percentage 5.75%      
Net proceeds from issuance of debt, before issuance costs $ 73,900,000      
Proceeds from debt, net of issuance costs 73,500,000      
Debt issuance costs 1,500,000      
Accrued interest payable $ 8,600,000      
Weighted Average [Member] | First Midwest Financial Capital Trust I [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Effective interest rate 12.50%      
Crestmark Bancorp, Inc. [Member]        
Debt Instrument [Line Items]        
Effective interest rate 5.31%      
Long-term debt $ 3,400,000     $ 3,609,000
Debt instrument, term 30 years      
Crestmark Bancorp, Inc. [Member] | LIBOR [Member]        
Debt Instrument [Line Items]        
Basis spread on variable rate 3.00%      
v3.10.0.1
EMPLOYEE STOCK OWNERSHIP AND PROFIT SHARING PLANS (Details)
 12 Months Ended
Sep. 30, 2018
USD ($)
hours
$ / shares
shares
Sep. 30, 2017
USD ($)
$ / shares
shares
Sep. 30, 2016
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 | $ $ 2,073,000 $ 1,668,000 $ 1,150,000
Contribution to ESOP | $ $ 2,011,040 $ 1,606,102 $ 1,174,682
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) 72,996 61,458 58,143
Fair value of shares (ESOP) released (in dollars per share) | $ / shares $ 27.55 $ 26.13 $ 20.20
Allocated and total ESOP shares withdrawn from ESOP by participant no longer with the company (in shares) 6,687 42,378 46,506
Shares purchased for dividend reinvestment (in shares) 3,987 4,437 8,130
Year-end ESOP shares [Abstract]      
Allocated shares (in shares) 812,346 768,657 788,616
Unearned shares (in shares) 0 0
Total ESOP shares (in shares) 812,346 768,657 788,616
Fair value of unearned shares | $ $ 0 $ 0 $ 0
Contribution expense to profit sharing plan included in compensation and benefits | $ $ 2,200,000 $ 1,600,000 $ 1,300,000
v3.10.0.1
SHARE BASED COMPENSATION PLANS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Total employee stock-based compensation expense recognized in income, net of tax effects of $3,907, $192, and $66, respectively $ 7,878 $ 6,486 $ 559
Tax effects of employee's stock-based compensation expense recognized income 3,139 $ 3,907 $ 192
Stock based compensation expense not yet recognized in income $ 17,000    
Weighted average remaining period for unrecognized stock based compensation 3 years 7 months 2 days    
Period that options are issued 10 years    
Percentage of options vesting at either grant date or over four year period 100.00%    
Period that options vest 4 years    
Granted (in shares) 0 0 0
Fair value of share granted (in shares) 354,108 949,812  
Award vesting P8Y    
Director [Member]      
Effect to income of share-based compensation expense, net of tax benefits [Abstract]      
Fair value of share granted (in shares) 1,100,000 500,000 200,000
v3.10.0.1
SHARE BASED COMPENSATION PLANS - Summary of Stock Options (Details) - USD ($)
$ / shares in Units, $ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Number of Shares [Roll Forward]      
Options outstanding, beginning of period (in shares) 227,271 376,680  
Granted (in shares) 0 0 0
Exercised (in shares) (71,310) (88,158)  
Forfeited or expired (in shares) 0 (61,251)  
Options outstanding, end of period (in shares) 155,961 227,271 376,680
Options exercisable end of year (in shares) 155,961 227,271  
Weighted Average Exercise Price [Roll Forward]      
Options outstanding, beginning of period (in dollars per share) $ 7.54 $ 8.58  
Granted (in dollars per share) 0 0  
Exercised (in dollars per share) 5.48 11.13  
Forfeited or expired (in dollars per share) 0.00 9  
Options outstanding, end of period (in dollars per share) 8.48 7.54 $ 8.58
Options exercisable end of year (in dollars per share) $ 8.48 $ 7.54  
Weighted Average Remaining Contractual Term (Yrs) [Abstract]      
Options outstanding , weighted average remaining contractual term (Yrs) 1 year 9 months 11 days 2 years 3 months 11 days 2 years 8 months 5 days
Options exercisable end of year, weighted average remaining contractual term (Yrs) 1 year 9 months 11 days 2 years 3 months 11 days  
Aggregate Intrinsic Value [Abstract]      
Options outstanding, beginning of period $ 4,225 $ 4,379  
Granted 0 0  
Exercised 1,909 1,790 $ 1,500
Forfeited or expired 0 1,464  
Options outstanding, end of period $ 2,974 4,225 $ 4,379
Options exercisable end of year   $ 4,225  
v3.10.0.1
SHARE BASED COMPENSATION PLANS - Nonvested Shares (Details) - $ / shares
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Number of Shares    
Nonvested shares outstanding, beginning of period (in shares) 913,578 61,968
Granted (in shares) 354,108 949,812
Vested (in shares) (253,944) (87,405)
Forfeited or expired (in shares) (7,929) (10,797)
Nonvested shares outstanding, end of period (in shares) 1,005,813 913,578
Weighted Average Fair Value At Grant    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 28.99 $ 13.79
Granted (in dollars per share) 30.36 29.16
Vested (in dollars per share) 27.49 21.41
Forfeited or expired (in dollars per share) 23.27 18.80
Nonvested shares outstanding, end of period (in dollars per share) $ 29.89 $ 28.99
v3.10.0.1
INCOME TAXES (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2017
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Federal:        
Current   $ (4,023,000) $ 12,153,000 $ 4,410,000
Deferred   5,895,000 (5,040,000) (440,000)
Federal income tax expense   1,872,000 7,113,000 3,970,000
State:        
Current   2,611,000 4,366,000 1,422,000
Deferred   634,000 (1,246,000) 210,000
State tax expense   3,245,000 3,120,000 1,632,000
Income tax expense   5,117,000 10,233,000 5,602,000
Deferred tax assets:        
Bad debts   3,224,000 2,832,000  
Deferred compensation   3,495,000 1,548,000  
Stock based compensation   3,758,000 3,436,000  
AMT Credit   0 1,869,000  
Intangibles   0 5,235,000  
Net unrealized losses on securities available for sale   10,663,000 0  
Valuation adjustments   6,991,000 0  
General business credits   12,243,000 0  
Accrued expenses   3,144,000 1,188,000  
Other assets   1,629,000 1,579,000  
Gross deferred tax assets   45,147,000 17,687,000  
Deferred tax liabilities:        
Premises and equipment   (347,000) (1,713,000)  
Intangibles   (4,231,000) 0  
Net unrealized gains on securities available for sale   0 (4,934,000)  
Deferred income   (2,070,000) 0  
Leased assets   (17,985,000) 0  
Leased assets   (1,777,000) (1,939,000)  
Gross deferred tax liabilities   (26,410,000) (8,586,000)  
Net deferred tax assets   18,737,000 9,101,000  
Effective Income Tax Rate Reconciliation, Amount [Abstract]        
Income tax expense at federal tax rate   14,082,000 19,303,000 13,588,000
Change in tax rate resulting from:        
State income taxes net of federal benefits   2,461,000 2,014,000 933,000
Tax exempt income   (6,968,000) (9,991,000) (8,257,000)
Nondeductible acquisition costs   1,295,000 0 0
General business credits   (3,948,000) 0 0
Tax Reform   3,849,000 0 0
Amended Crestmark Bancorp historical tax return   (4,644,000) 0 0
Other, net   (1,010,000) (1,093,000) (662,000)
Income tax expense   $ 5,117,000 $ 10,233,000 $ 5,602,000
Effective Income Tax Rate Reconciliation, Percent [Abstract]        
Statutory federal income tax expense and rate (percent)   24.50% 35.00% 35.00%
State income taxes net of federal benefits (percent)   4.30% 3.70% 2.40%
Tax exempt income (percent)   (12.10%) (18.10%) (21.30%)
Nondeductible acquisition costs (percent)   2.30% 0.00% 0.00%
General business credits (percent)   (6.90%) (0.00%) (0.00%)
Tax Reform (percent)   6.70% 0.00% 0.00%
Amended Crestmark Bancorp historical tax return (percent)   (8.10%) 0.00% 0.00%
Other, net (percent)   (1.70%) (2.00%) (1.70%)
Total income tax expense (percent)   9.00% 18.60% 14.40%
Gross deferred tax on state net operating loss carryforwards   $ 2,000,000 $ 1,300,000  
Operating loss carryforwards reserved   1,600,000    
Additional bad debt deductions provided by federal income tax laws   6,700,000    
Deferred tax liability, bad debt deductions   1,400,000 1,400,000  
Change in Tax Rate, Income Tax Expense (Benefit) $ 3,600,000      
Tax credit, investment, amount   4,000,000 0 $ 0
Reconciliation for liabilities [Abstract]        
Balance at beginning of year $ 645,000 645,000 525,000  
Additions for tax positions related to the current year   0 192,000  
Additions for tax positions related to the prior years   0 31,000  
Reductions for tax positions related to prior years   (211,000) (103,000)  
Balance at end of year   434,000 $ 645,000 $ 525,000
Unrecognized tax benefits that, if recognized, would impact the effective rate   384,000    
Accrued interest related to unrecognized tax benefits   $ 68,000    
v3.10.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Financial Measures of Capital (Details)
Sep. 30, 2018
Sep. 30, 2017
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 8.50% 7.64%
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 10.56% 13.97%
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 10.97% 14.46%
Tier 1 (core) capital (to risk-weighted assets), minimum requirement for capital adequacy purposes, ratio 6.00% 6.00%
Tier 1 (core) capital (to risk-weighted assets), minimum requirement to be well capitalized under prompt corrective action provisions, ratio 8.00% 8.00%
Total qualifying capital (to risk-weighted assets), ratio 13.18% 18.41%
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 [Member]    
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items]    
Tier 1 (core) capital (to adjusted total assets), ratio 9.75% 9.64%
Common equity Tier 1 (to risk-weighted assets), actual ratio 12.50% 18.22%
Tier 1 (core) capital ( to risk weighted assets), ratio 12.56% 18.22%
Total qualifying capital (to risk-weighted assets), ratio 12.89% 18.59%
v3.10.0.1
CAPITAL REQUIREMENTS AND RESTRICTIONS ON RETAINED EARNINGS - Reconciliation of Capital Amounts (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
Reconciliation of capital amounts [Abstract]        
Total stockholders' equity $ 747,726 $ 434,496 $ 334,975 $ 271,335
Adjustments:        
LESS: Goodwill, net of associated deferred tax liabilities 299,456      
LESS: Certain other intangible assets 64,716      
LESS: Net unrealized gains (losses) on available-for-sale securities (33,114)      
LESS: Non-controlling interest (3,574) $ 0    
LESS: Unrealized currency gains (losses) 3      
Common Equity Tier 1 413,091      
Long-term debt and other instruments qualifying as Tier 1 13,661      
Tier 1 minority interest not included in common equity tier 1 capital (2,118)      
Total Tier 1 capital 428,870      
Allowance for loan and lease losses 13,185      
Subordinated debentures (net of issuance costs) 73,491      
Total qualifying capital $ 515,546      
v3.10.0.1
COMMITMENTS AND CONTINGENCIES (Details) - USD ($)
 3 Months Ended
Dec. 31, 2014
Sep. 30, 2018
Sep. 30, 2017
Oct. 14, 2016
Commitments and Contingencies Disclosure [Abstract]        
Unfunded loan commitments   $ 748,800,000 $ 233,200,000  
Commitment to purchase securities   1,430,000 0  
Commitment to sell securities   0 0  
Off-Balance Sheet valuation allowance   $ 100,000 $ 200,000  
Inter National Bank [Member]        
Loss Contingencies [Line Items]        
Amount of shortfall in depository account $ 10,500,000      
Card Limited, LLC v. MetaBank dba Meta Payment Systems [Member]        
Loss Contingencies [Line Items]        
Estimate of possible loss       $ 4,001,025
v3.10.0.1
LEASE COMMITMENTS (Details)
 12 Months Ended
Sep. 30, 2018
USD ($)
Lease_renewals
Leases [Abstract]  
Annual rent, minimum $ 400
Annual rent, maximum $ 789,000
Operating lease term 20 years
Operating lease, number of additional renewals | Lease_renewals 4
Operating lease, renewal term 5 years
Total minimum rental commitments for operating leases [Abstract]  
2019 $ 3,854,000
2020 3,656,000
2021 3,429,000
2022 2,955,000
2023 2,561,000
Thereafter 21,428,000
Total Operating Lease Commitments 37,883,000
Total minimum rental commitments for capital leases [Abstract]  
2019 179,000
2020 182,000
2021 182,000
2022 182,000
2023 182,000
Thereafter 2,058,000
Total Capital Lease Commitments 2,965,000
Amounts representing interest 1,089,000
Present value of net minimum lease payments $ 1,876,000
v3.10.0.1
SEGMENT REPORTING (Details)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2018
USD ($)
Jun. 30, 2018
USD ($)
Mar. 31, 2018
USD ($)
Dec. 31, 2017
USD ($)
Sep. 30, 2017
USD ($)
Jun. 30, 2017
USD ($)
Mar. 31, 2017
USD ($)
Dec. 31, 2016
USD ($)
Sep. 30, 2016
USD ($)
Jun. 30, 2016
USD ($)
Mar. 31, 2016
USD ($)
Dec. 31, 2015
USD ($)
Sep. 30, 2018
USD ($)
segment
Sep. 30, 2017
USD ($)
Sep. 30, 2016
USD ($)
Segment Reporting [Abstract]                              
Number of reportable segments | segment                         3    
Segment data [Abstract]                              
Interest income                         $ 158,534 $ 108,103 $ 81,396
Interest expense $ 11,665 $ 5,693 $ 5,966 $ 4,661 $ 4,461 $ 3,918 $ 3,752 $ 2,742 $ 1,836 $ 844 $ 691 $ 720 27,985 14,873 4,091
Net interest income (expense)                         130,549 93,230 77,305
Provision for loan and lease losses 4,706 5,315 18,343 1,068 (144) 1,240 8,649 843 548 2,098 1,173 786 29,432 10,589 4,605
Non-interest income 24,613 $ 33,225 $ 97,419 $ 29,268 29,833 $ 30,820 $ 92,170 $ 19,349 19,228 $ 23,807 $ 40,901 $ 16,834 184,525 172,172 100,770
Non-interest expense                         228,232 199,663 134,648
Income (loss) before income tax expense (benefit)                         57,410 55,150 38,822
Total assets 5,835,067       5,228,332       4,006,419       5,835,067 5,228,332 4,006,419
Goodwill 303,270       98,723       36,928       303,270 98,723 36,928
Total deposits 4,430,987       3,223,424       2,430,082       4,430,987 3,223,424 2,430,082
Payments                              
Segment data [Abstract]                              
Interest income                         24,487 13,845 9,711
Interest expense                         1,646 503 181
Net interest income (expense)                         22,841 13,342 9,530
Provision for loan and lease losses                         21,344 7,613 971
Non-interest income                         176,250 165,707 95,261
Non-interest expense                         126,610 132,984 77,411
Income (loss) before income tax expense (benefit)                         51,137 38,452 26,409
Total assets 186,502       185,521       87,311       186,502 185,521 87,311
Goodwill 87,145       87,145       25,350       87,145 87,145 25,350
Total deposits 2,412,986       2,436,893       2,131,042       2,412,986 2,436,893 2,131,042
Banking                              
Segment data [Abstract]                              
Interest income                         97,817 52,231 38,321
Interest expense                         7,012 2,723 1,331
Net interest income (expense)                         90,805 49,508 36,990
Provision for loan and lease losses                         8,088 2,976 3,634
Non-interest income                         13,950 4,685 4,280
Non-interest expense                         46,982 24,520 23,001
Income (loss) before income tax expense (benefit)                         49,685 26,697 14,635
Total assets 3,413,409       1,343,968       946,420       3,413,409 1,343,968 946,420
Goodwill 216,125       11,578       11,578       216,125 11,578 11,578
Total deposits 746,003       229,969       299,030       746,003 229,969 299,030
Corporate Services/Other                              
Segment data [Abstract]                              
Interest income                         36,230 42,027 33,364
Interest expense                         19,327 11,647 2,579
Net interest income (expense)                         16,903 30,380 30,785
Provision for loan and lease losses                         0 0 0
Non-interest income                         (5,675) 1,780 1,229
Non-interest expense                         54,640 42,159 34,236
Income (loss) before income tax expense (benefit)                         (43,412) (9,999) (2,222)
Total assets 2,235,156       3,698,843       2,972,688       2,235,156 3,698,843 2,972,688
Goodwill 0       0       0       0 0 0
Total deposits $ 1,271,998       $ 556,562       $ 10       $ 1,271,998 $ 556,562 $ 10
v3.10.0.1
PARENT COMPANY FINANCIAL STATEMENTS (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2015
ASSETS [Abstract]                                      
Cash and cash equivalents $ 99,977     $ 1,267,586 $ 1,267,586     $ 773,830 $ 773,830     $ 27,658 $ 1,267,586 $ 773,830 $ 27,658 $ 99,977 $ 1,267,586 $ 773,830 $ 27,658
Investment securities held to maturity                               164,304 449,840    
Other assets                               30,879 12,738    
Total assets                               5,835,067 5,228,332 4,006,419  
LIABILITIES [Abstract]                                      
Long term debt                               88,963 85,533    
Other liabilities                               133,838 78,065    
Total liabilities                               5,087,341 4,793,836    
STOCKOLDERS' EQUITY [Abstract]                                      
Common stock [1]                               393 288    
Additional paid-in capital                               565,811 258,144    
Retained earnings                               213,048 167,164    
Accumulated other comprehensive income (loss)                               (33,111) 9,166    
Treasury stock, at cost                               (1,989) (266)    
Total equity attributable to parent                               744,152 434,496    
Non-controlling interest                               3,574 0    
Total stockholders' equity                               747,726 434,496 334,975 271,335
Total liabilities and stockholders’ equity                               5,835,067 5,228,332    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                      
Interest expense 11,665 $ 5,693 $ 5,966 4,661 4,461 $ 3,918 $ 3,752 2,742 1,836 $ 844 $ 691 720 27,985 14,873 4,091        
Other expense                         228,232 199,663 134,648        
Income tax expense                         5,117 10,233 5,602        
Net Income attributable to parent 8,722 $ 6,792 $ 31,436 4,670 1,744 $ 9,787 $ 32,142 1,244 6,006 $ 8,873 $ 14,283 4,058 51,620 44,917 33,220        
Cash flows from operating activities:                                      
Net income before noncontrolling interest                         52,293 44,917 33,220        
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract]                                      
Depreciation, amortization and accretion, net                         37,722 45,048 35,617        
Stock compensation                         11,123 10,393 486        
Other assets                         2,633 (23,408) (1,968)        
Net cash provided by operating activities                         137,755 119,990 78,497        
Cash flows from investing activities:                                      
Held to Maturity: Proceeds from maturities and principal repayments                         162,118 126,420 116,333        
Net cash used in investing activities                         (389,790) (700,433) (738,480)        
Cash flows from financing activities:                                      
Cash dividends paid                         (5,736) (4,839) (4,389)        
Short term debt                         (11,642) 0 0        
Long term debt                         (258) 0 0        
Debt issuance costs                         0 0 (1,767)        
Contingent consideration - equity                         0 (17,253) 0        
Exercise of stock options & issuance of common stock                         148 650 13,858        
Issuance of restricted stock                         4 12 0        
Cash acquired due to acquisitions                         0 0 75,000        
Shares repurchased for tax withholdings on stock compensation                         (2,598) (470) 0        
Net cash (used in) provided by financing activities                         (915,577) 1,074,199 1,406,155        
Net change in cash and cash equivalents                         (1,167,609) 493,756 746,172        
CASH AND CASH EQUIVALENTS                                      
Cash and cash equivalents at beginning of year       1,267,586       773,830       27,658 1,267,586 773,830 27,658        
Cash and cash equivalents at end of year 99,977       1,267,586       773,830       99,977 1,267,586 773,830        
Meta Financial [Member]                                      
ASSETS [Abstract]                                      
Cash and cash equivalents 28,209     14,569 14,569     15,716 15,716     14,280 14,569 15,716 14,280 28,209 14,569 $ 15,716 $ 14,280
Investment securities held to maturity                               411 310    
Investment in subsidiaries                               823,215 521,021    
Other assets                               124 96    
Total assets                               851,959 535,996    
LIABILITIES [Abstract]                                      
Long term debt                               87,152 83,657    
Other liabilities                               17,081 17,843    
Total liabilities                               104,233 101,500    
STOCKOLDERS' EQUITY [Abstract]                                      
Common stock                               393 288    
Additional paid-in capital                               565,811 258,144    
Retained earnings                               213,048 167,164    
Accumulated other comprehensive income (loss)                               (33,111) 9,166    
Treasury stock, at cost                               (1,989) (266)    
Total equity attributable to parent                               744,152 434,496    
Non-controlling interest                               3,574 0    
Total stockholders' equity                               747,726 434,496    
Total liabilities and stockholders’ equity                               $ 851,959 $ 535,996    
CONDENSED STATEMENTS OF OPERATIONS [Abstract]                                      
Interest expense                         5,061 4,959 1,022        
Other expense                         663 440 382        
Total expense                         5,724 5,399 1,404        
Gain (Loss) before income taxes and equity in undistributed net income of subsidiaries                         (5,724) (5,399) (1,404)        
Income tax expense                         (1,504) (1,935) (519)        
Gain (Loss) before equity in undistributed net income of subsidiaries                         (4,220) (3,464) (885)        
Equity in undistributed net income of subsidiaries                         55,840 48,381 34,105        
Net Income attributable to parent                         51,620 44,917 33,220        
Cash flows from operating activities:                                      
Net income before noncontrolling interest                         51,620 44,917 33,220        
Adjustments to reconcile net income to net cash provided by (used in) operating activities [Abstract]                                      
Depreciation, amortization and accretion, net                         143 136 (22)        
Equity in undistributed net income of subsidiaries                         (55,840) (48,381) (34,105)        
Stock compensation                         11,123 10,393 426        
Other assets                         232 7 (5)        
Accrued expenses and other liabilities                         (860) 16,636 541        
Cash dividend received                         45,315 0 0        
Net cash provided by operating activities                         51,733 23,708 55        
Cash flows from investing activities:                                      
Held to Maturity: Proceeds from maturities and principal repayments                         8 0 0        
Capital contributions to subsidiaries                         (20,322) (82,820) (81,000)        
Net cash used in investing activities                         (20,314) (82,820) (81,000)        
Cash flows from financing activities:                                      
Cash dividends paid                         (5,736) (4,839) (4,389)        
Short term debt                         (11,642) 0 0        
Long term debt                         (258) 0 75,000        
Debt issuance costs                         0 0 (1,767)        
Purchase of shares by ESOP                         1,606 1,174 0        
Contingent consideration - equity                         0 24,142 0        
Exercise of stock options & issuance of common stock                         148 650 13,537        
Issuance of restricted stock                         4 12 0        
Issuance of commons shares due to acquisitions                         295,767 37,296 0        
Cash acquired due to acquisitions                         697 0 0        
Net increase in investment in subsidiaries                         (295,767) 0 0        
Shares repurchased for tax withholdings on stock compensation                         (2,598) (470) 0        
Net cash (used in) provided by financing activities                         (17,779) 57,965 82,381        
Net change in cash and cash equivalents                         13,640 (1,147) 1,436        
CASH AND CASH EQUIVALENTS                                      
Cash and cash equivalents at beginning of year       $ 14,569       $ 15,716       $ 14,280 14,569 15,716 14,280        
Cash and cash equivalents at end of year $ 28,209       $ 14,569       $ 15,716       $ 28,209 $ 14,569 $ 15,716        
[1] All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.
v3.10.0.1
SELECTED QUARTERLY FINANCIAL DATA (UNAUDITED) (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended 12 Months Ended
Sep. 30, 2018
Jun. 30, 2018
Mar. 31, 2018
Dec. 31, 2017
Sep. 30, 2017
Jun. 30, 2017
Mar. 31, 2017
Dec. 31, 2016
Sep. 30, 2016
Jun. 30, 2016
Mar. 31, 2016
Dec. 31, 2015
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Quarterly Financial Information Disclosure [Abstract]                              
Interest income $ 60,202 $ 34,104 $ 33,371 $ 30,857 $ 28,949 $ 28,861 $ 27,718 $ 22,575 $ 21,729 $ 20,763 $ 20,629 $ 18,275      
Interest expense 11,665 5,693 5,966 4,661 4,461 3,918 3,752 2,742 1,836 844 691 720 $ 27,985 $ 14,873 $ 4,091
Net interest income 48,537 28,411 27,405 26,196 24,488 24,943 23,966 19,833 19,893 19,919 19,938 17,555 130,549 93,230 77,305
Provision for loan and lease losses 4,706 5,315 18,343 1,068 (144) 1,240 8,649 843 548 2,098 1,173 786 29,432 10,589 4,605
Noninterest Income 24,613 33,225 97,419 29,268 29,833 30,820 92,170 19,349 19,228 23,807 40,901 16,834 184,525 172,172 100,770
Net Income attributable to parent $ 8,722 $ 6,792 $ 31,436 $ 4,670 $ 1,744 $ 9,787 $ 32,142 $ 1,244 $ 6,006 $ 8,873 $ 14,283 $ 4,058 $ 51,620 $ 44,917 $ 33,220
Earnings (loss) per common and common equivalent share [Abstract]                              
Basic (in dollars per share) $ 0.24 $ 0.22 $ 1.07 $ 0.15 $ 0.07 $ 0.35 $ 1.15 $ 0.05 $ 0.23 $ 0.35 $ 0.57 $ 0.16 $ 1.68 [1] $ 1.62 [1] $ 1.31 [1]
Diluted (in dollars per share) 0.24 0.22 1.06 0.15 0.07 0.35 1.14 0.05 0.23 0.35 0.56 0.16 $ 1.67 [1] $ 1.61 [1] $ 1.30 [1]
Dividend declared per share (in dollars per share) $ 0.05 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04 $ 0.04      
[1] All share and per share data for all periods presented has been adjusted to reflect the 3-for-1 forward stock split of the Company's common stock effected by the Company on October 4, 2018.
v3.10.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS - Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
Sep. 30, 2018
Sep. 30, 2017
Fair Value, Assets Measured on Recurring and Nonrecurring Basis [Line Items]    
Transfers between levels of fair value hierarchy $ 0 $ 0
Available For Sale    
Total debt securities 364,065,000 586,454,000
Total securities 1,852,025,000 1,693,431,000
Held To Maturity    
Total securities 160,974,000 564,185,000
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 31,638,000 292,000
Level 1 [Member]    
Available For Sale    
Total securities 3,800,000 1,445,000
Held To Maturity    
Total securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 2 [Member]    
Available For Sale    
Total securities 1,848,225,000 1,691,986,000
Held To Maturity    
Total securities 160,974,000 564,185,000
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Level 3 [Member]    
Available For Sale    
Total securities 0 0
Held To Maturity    
Total securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 2,927,755,000 1,318,402,000
Recurring [Member]    
Available For Sale    
Small business administration securities 44,337,000 57,871,000
Obligations of states and political subdivisions 16,910,000 0
Non-bank qualified obligations of states and political subdivisions 1,109,885,000 950,829,000
Asset backed securities 313,028,000 96,832,000
Mortgage-backed securities 364,065,000 586,454,000
Total debt securities 1,848,225,000 1,691,986,000
Common Equities and Mutual Funds, Available-for-Sale 3,800,000 1,445,000
Total securities 1,852,025,000 1,693,431,000
Held To Maturity    
Small business administration securities 0 0
Obligations of states and political subdivisions 0 19,368,000
Non-bank qualified obligations of states and political subdivisions 153,546,000 432,361,000
Asset backed securities 0 0
Mortgage-backed securities 7,428,000 112,456,000
Total debt securities 160,974,000 564,185,000
Common equities and mutual funds 0 0
Total securities 160,974,000 564,185,000
Recurring [Member] | Level 1 [Member]    
Available For Sale    
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common Equities and Mutual Funds, Available-for-Sale 3,800,000 1,445,000
Total securities 3,800,000 1,445,000
Held To Maturity    
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total securities 0 0
Recurring [Member] | Level 2 [Member]    
Available For Sale    
Small business administration securities 44,337,000 57,871,000
Obligations of states and political subdivisions 16,910,000 0
Non-bank qualified obligations of states and political subdivisions 1,109,885,000 950,829,000
Asset backed securities 313,028,000 96,832,000
Mortgage-backed securities 364,065,000 586,454,000
Total debt securities 1,848,225,000 1,691,986,000
Common Equities and Mutual Funds, Available-for-Sale 0 0
Total securities 1,848,225,000 1,691,986,000
Held To Maturity    
Small business administration securities 0 0
Obligations of states and political subdivisions 0 19,368,000
Non-bank qualified obligations of states and political subdivisions 153,546,000 432,361,000
Asset backed securities 0 0
Mortgage-backed securities 7,428,000 112,456,000
Total debt securities 160,974,000 564,185,000
Common equities and mutual funds 0 0
Total securities 160,974,000 564,185,000
Recurring [Member] | Level 3 [Member]    
Available For Sale    
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common Equities and Mutual Funds, Available-for-Sale 0 0
Total securities 0 0
Held To Maturity    
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Asset backed securities 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total securities 0 0
Nonrecurring [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 36,463,000 292,000
Nonrecurring [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 4,825,000  
Nonrecurring [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 31,638,000 292,000
Nonrecurring [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 0 0
Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Nonrecurring [Member] | Level 1 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0 0
Nonrecurring [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 0 0
Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Nonrecurring [Member] | Level 2 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 0 0
Nonrecurring [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Total 36,463,000 292,000
Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 4,825,000  
Nonrecurring [Member] | Level 3 [Member] | Foreclosed Assets, Net [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Foreclosed real estate and repossessed assets 31,638,000 292,000
Community Banking [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 1 [Member] | 1-4 Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 1 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 2 [Member] | 1-4 Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 2 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 1,076,782,000 920,439,000
Community Banking [Member] | Level 3 [Member] | 1-4 Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 220,697,000 196,970,000
Community Banking [Member] | Level 3 [Member] | Commercial and Multi-Family Real Estate [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 731,291,000 576,330,000
Community Banking [Member] | Nonrecurring [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 4,825,000  
Community Banking [Member] | Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Community Banking [Member] | Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
Community Banking [Member] | Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 4,825,000  
National Lending [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 1,850,973,000 $ 397,963,000
National Lending [Member] | Nonrecurring [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 4,825,000  
National Lending [Member] | Nonrecurring [Member] | Level 1 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
National Lending [Member] | Nonrecurring [Member] | Level 2 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net 0  
National Lending [Member] | Nonrecurring [Member] | Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Impaired Loans, Net $ 4,825,000  
v3.10.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS - Quantitative Information (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Minimum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)    
Range of estimated selling cost (in hundredths) 4.00%  
Maximum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)    
Range of estimated selling cost (in hundredths) 10.00%  
Level 3 [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)    
Impaired Loans, Net $ 2,927,755 $ 1,318,402
Impaired Loans [Member] | Level 3 [Member] | Valuation, Market Approach [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)    
Impaired Loans, Net 4,825 0
Foreclosed Assets [Member] | Level 3 [Member] | Valuation, Market Approach [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items] (Deprecated 2018-01-31)    
Impaired Loans, Net $ 31,638 $ 292
v3.10.0.1
FAIR VALUES OF FINANCIAL INSTRUMENTS - Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Sep. 30, 2018
Sep. 30, 2017
Financial assets [Abstract]    
Securities available for sale $ 1,852,025 $ 1,693,431
Securities held to maturity 160,974 564,185
Loans held for sale 15,606 0
Financial liabilities [Abstract]    
Trust preferred securities 13,661 10,310
Subordinated debentures 73,491  
Level 1 [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 99,977 1,267,586
Securities available for sale 3,800 1,445
Securities held to maturity 0 0
Total securities 3,800 1,445
Loans held for sale 0  
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Federal Home Loan Bank stock 0 0
Accrued interest receivable 22,016 19,380
Financial liabilities [Abstract]    
Non-interest bearing demand deposits 2,405,274 2,454,057
Interest bearing demand deposits, savings, and money markets 218,347 169,557
Certificates of deposits 0 0
Wholesale non-maturing deposits 94,384 18,245
Wholesale certificates of deposits 0 0
Total deposits 2,718,005 2,641,859
Advances from Federal Home Loan Bank 0 0
Federal funds purchased 422,000 987,000
Securities sold under agreements to repurchase 0 0
Capital leases 0 0
Trust preferred securities 0 0
Subordinated debentures 0 0
Accrued interest payable 7,794 2,280
Level 2 [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 0 0
Securities available for sale 1,848,225 1,691,986
Securities held to maturity 160,974 564,185
Total securities 2,009,199 2,256,171
Loans held for sale 15,606  
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Federal Home Loan Bank stock 23,400 61,123
Accrued interest receivable 0 0
Financial liabilities [Abstract]    
Non-interest bearing demand deposits 0 0
Interest bearing demand deposits, savings, and money markets 0 0
Certificates of deposits 273,800 123,094
Wholesale non-maturing deposits 0 0
Wholesale certificates of deposits 1,432,146 457,509
Total deposits 1,705,946 580,603
Advances from Federal Home Loan Bank 0 415,003
Federal funds purchased 0 0
Securities sold under agreements to repurchase 3,694 2,472
Capital leases 1,876 1,938
Trust preferred securities 13,866 10,447
Subordinated debentures 75,563 76,500
Accrued interest payable 0 0
Level 3 [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 0 0
Securities available for sale 0 0
Securities held to maturity 0 0
Total securities 0 0
Loans held for sale 0  
Loans receivable: [Abstract]    
Impaired Loans, Net 2,927,755 1,318,402
Federal Home Loan Bank stock 0 0
Accrued interest receivable 0 0
Financial liabilities [Abstract]    
Non-interest bearing demand deposits 0 0
Interest bearing demand deposits, savings, and money markets 0 0
Certificates of deposits 0 0
Wholesale non-maturing deposits 0 0
Wholesale certificates of deposits 0 0
Total deposits 0 0
Advances from Federal Home Loan Bank 0 0
Federal funds purchased 0 0
Securities sold under agreements to repurchase 0 0
Capital leases 0 0
Trust preferred securities 0 0
Subordinated debentures 0 0
Accrued interest payable 0 0
Carrying Amount [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 99,977 1,267,586
Securities available for sale 1,852,025 1,693,431
Securities held to maturity 172,154 563,529
Total securities 2,024,179 2,256,960
Loans held for sale 15,606  
Loans receivable: [Abstract]    
Impaired Loans, Net 2,944,989 1,326,832
Federal Home Loan Bank stock 23,400 61,123
Accrued interest receivable 22,016 19,380
Financial liabilities [Abstract]    
Non-interest bearing demand deposits 2,405,274 2,454,057
Interest bearing demand deposits, savings, and money markets 218,347 169,557
Certificates of deposits 276,180 123,637
Wholesale non-maturing deposits 94,384 18,245
Wholesale certificates of deposits 1,436,802 457,928
Total deposits 4,430,987 3,223,424
Advances from Federal Home Loan Bank 0 415,000
Federal funds purchased 422,000 987,000
Securities sold under agreements to repurchase 3,694 2,472
Capital leases 1,876 1,938
Trust preferred securities 13,661 10,310
Subordinated debentures 73,491 73,347
Accrued interest payable 7,794 2,280
Estimated Fair Value [Member]    
Financial assets [Abstract]    
Cash and cash equivalents 99,977 1,267,586
Securities available for sale 1,852,025 1,693,431
Securities held to maturity 160,974 564,185
Total securities 2,012,999 2,257,616
Loans held for sale 15,606  
Loans receivable: [Abstract]    
Impaired Loans, Net 2,927,755 1,318,402
Federal Home Loan Bank stock 23,400 61,123
Accrued interest receivable 22,016 19,380
Financial liabilities [Abstract]    
Non-interest bearing demand deposits 2,405,274 2,454,057
Interest bearing demand deposits, savings, and money markets 218,347 169,557
Certificates of deposits 273,800 123,094
Wholesale non-maturing deposits 94,384 18,245
Wholesale certificates of deposits 1,432,146 457,509
Total deposits 4,423,951 3,222,462
Advances from Federal Home Loan Bank 0 415,003
Federal funds purchased 422,000 987,000
Securities sold under agreements to repurchase 3,694 2,472
Capital leases 1,876 1,938
Trust preferred securities 13,866 10,447
Subordinated debentures 75,563 76,500
Accrued interest payable 7,794 2,280
National Lending [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,850,973 397,963
National Lending [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,846,283 395,729
National Lending [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,850,973 397,963
National Lending [Member] | Commercial Operating [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Commercial Operating [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Commercial Operating [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,506,969 255,813
National Lending [Member] | Commercial Operating [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,509,849 255,308
National Lending [Member] | Commercial Operating [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,506,969 255,813
National Lending [Member] | Consumer [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Consumer [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Consumer [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 342,931 141,958
National Lending [Member] | Consumer [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 335,361 140,229
National Lending [Member] | Consumer [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 342,931 141,958
National Lending [Member] | Tax Services [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Tax Services [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
National Lending [Member] | Tax Services [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,073 192
National Lending [Member] | Tax Services [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,073 192
National Lending [Member] | Tax Services [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,073 192
Community Banking [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,076,782 920,439
Community Banking [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,098,706 931,103
Community Banking [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 1,076,782 920,439
Community Banking [Member] | Commercial Operating [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Commercial Operating [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Commercial Operating [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 41,912 30,682
Community Banking [Member] | Commercial Operating [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 42,311 30,718
Community Banking [Member] | Commercial Operating [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 41,912 30,682
Community Banking [Member] | Consumer [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Consumer [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Consumer [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 24,033 22,003
Community Banking [Member] | Consumer [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 23,836 22,775
Community Banking [Member] | Consumer [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 24,033 22,003
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 731,291 576,330
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 748,579 585,510
Community Banking [Member] | Commercial and Multi-Family Real Estate [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 731,291 576,330
Community Banking [Member] | 1-4 Family Real Estate [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | 1-4 Family Real Estate [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | 1-4 Family Real Estate [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 220,697 196,970
Community Banking [Member] | 1-4 Family Real Estate [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 223,482 196,706
Community Banking [Member] | 1-4 Family Real Estate [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 220,697 196,970
Community Banking [Member] | Agricultural [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Agricultural [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 0 0
Community Banking [Member] | Agricultural [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 58,849 94,454
Community Banking [Member] | Agricultural [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net 60,498 95,394
Community Banking [Member] | Agricultural [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Impaired Loans, Net $ 58,849 $ 94,454
v3.10.0.1
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
 12 Months Ended
Sep. 30, 2018
Sep. 30, 2017
Sep. 30, 2016
Sep. 30, 2018
Aug. 01, 2018
Sep. 30, 2017
Dec. 14, 2016
Nov. 01, 2016
Sep. 08, 2015
Dec. 02, 2014
Finite-Lived Intangible Assets [Line Items]                    
Goodwill $ 98,723 $ 36,928 $ 36,928 $ 303,270   $ 98,723        
Goodwill [Roll Forward]                    
Balance, beginning of period 98,723 36,928                
Acquisitions during the period 204,547 61,795                
Write-offs during the period 0 0                
Balance, end of period 303,270 98,723 36,928              
Intangible Assets [Roll Forward]                    
Balance, beginning of period 52,178 28,921                
Acquisitions during the period 28,361 46,397                
Amortization during the period (9,641) (12,363)                
Write-offs during the period (179) (10,777)                
Balance upon acquisition       110,143   81,782        
Accumulated amortization       (28,468)   (18,827)        
Accumulated impairment       (10,956)   (10,777)        
Balance, end of period 70,719 52,178 28,921              
Intangible impairment $ 18 10,248 0              
Book Amortization Period 9 years 11 months 1 day                  
Anticipated intangible amortization [Abstract]                    
2019       17,733            
2020       11,017            
2021       8,559            
2022       6,404            
2023       5,077            
Thereafter       21,929            
Total anticipated intangible amortization $ 52,178 28,921 28,921 70,719   52,178        
AFS/IBEX Financial Services Inc [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill                   $ 11,600
Refund Advantage [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill                 $ 25,400  
EPS Financial, LLC [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill               $ 30,375    
Specialty Consumer Services [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill             $ 31,419      
Crestmark Bancorp, Inc. [Member]                    
Finite-Lived Intangible Assets [Line Items]                    
Goodwill         $ 204,547          
Trademark [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period 10,051 5,149                
Acquisitions during the period 3,634 5,500                
Amortization during the period (698) (598)                
Write-offs during the period 0 0                
Balance upon acquisition       14,624   10,990        
Accumulated amortization       (1,637)   (939)        
Accumulated impairment         0        
Balance, end of period $ 12,987 10,051 5,149              
Book Amortization Period 10 years                  
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization $ 10,051 5,149 5,149 12,987   10,051        
Trademark [Member] | Refund Advantage [Member]                    
Intangible Assets [Roll Forward]                    
Book Amortization Period 15 years                  
Non-Compete [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period $ 1,782 127                
Acquisitions during the period 0 2,180                
Amortization during the period (485) (525)                
Write-offs during the period 0 0                
Balance upon acquisition       2,480   2,480        
Accumulated amortization       (1,183)   (698)        
Accumulated impairment         0        
Balance, end of period 1,297 1,782 127              
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization $ 1,782 127 127 1,297   1,782        
Non-Compete [Member] | Refund Advantage [Member]                    
Intangible Assets [Roll Forward]                    
Book Amortization Period 3 years                  
Customer Relationships [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period $ 31,707 20,590                
Acquisitions during the period 24,278 31,770                
Amortization during the period (7,530) (10,405)                
Write-offs during the period 0 (10,248)                
Balance upon acquisition       82,088   57,810        
Accumulated amortization       (23,385)   (15,855)        
Accumulated impairment       (10,248)   (10,248)        
Balance, end of period $ 48,455 31,707 20,590              
Book Amortization Period 10 years                  
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization $ 31,707 20,590 20,590 48,455   31,707        
Customer Relationships [Member] | Refund Advantage [Member] | Minimum [Member]                    
Intangible Assets [Roll Forward]                    
Book Amortization Period 10 years                  
Customer Relationships [Member] | Refund Advantage [Member] | Maximum [Member]                    
Intangible Assets [Roll Forward]                    
Book Amortization Period 30 years                  
Technology/Other [Member]                    
Intangible Assets [Roll Forward]                    
Balance, beginning of period $ 8,638 3,055                
Acquisitions during the period 449 6,947                
Amortization during the period (928) (835)                
Write-offs during the period (179) (529)                
Balance upon acquisition       10,951   10,502        
Accumulated amortization       (2,263)   (1,335)        
Accumulated impairment       (708)   (529)        
Balance, end of period $ 7,980 8,638 3,055              
Book Amortization Period 3 years                  
Anticipated intangible amortization [Abstract]                    
Total anticipated intangible amortization $ 8,638 $ 3,055 $ 3,055 $ 7,980   $ 8,638        
Technology/Other [Member] | Refund Advantage [Member] | Minimum [Member]                    
Intangible Assets [Roll Forward]                    
Book Amortization Period 3 years                  
Technology/Other [Member] | Refund Advantage [Member] | Maximum [Member]                    
Intangible Assets [Roll Forward]                    
Book Amortization Period 20 years                  
v3.10.0.1
SUBSEQUENT EVENTS (Details) - Common Stock [Member] - Subsequent Event [Member]
Oct. 05, 2018
shares
Subsequent Event [Line Items]  
Stock split, conversion ratio 3
Stock Issued, stock split (in shares) 39,200,000.0