META FINANCIAL GROUP INC, 10-Q filed on 2/4/2016
Quarterly Report
v3.3.1.900
Document and Entity Information - shares
 3 Months Ended
Dec. 31, 2015
Feb. 03, 2016
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 Accelerated Filer  
Entity Common Stock, Shares Outstanding   8,495,246
Document Fiscal Year Focus 2016  
Document Fiscal Period Focus Q1  
Document Type 10-Q  
Amendment Flag false  
Document Period End Date Dec. 31, 2015  
v3.3.1.900
Condensed Consolidated Statements of Financial Condition (Unaudited) - USD ($)
$ in Thousands
Dec. 31, 2015
Sep. 30, 2015
ASSETS    
Cash and cash equivalents $ 293,147 $ 27,658
Investment securities available for sale 761,584 679,504
Mortgage-backed securities available for sale 578,357 576,583
Investment securities held to maturity 340,959 279,167
Mortgage-backed securities held to maturity 70,376 66,577
Loans receivable - net of allowance for loan losses of $6,666 at December 31, 2015 and $6,255 at September 30, 2015 737,128 706,255
Federal Home Loan Bank Stock, at cost 4,810 24,410
Accrued interest receivable 16,306 13,352
Premises, furniture, and equipment, net 17,569 17,393
Bank-owned life insurance 46,204 45,830
Goodwill 36,928 36,928
Intangible assets 32,418 33,577
Prepaid assets 10,931 9,360
Deferred taxes 7,171 6,997
MPS accounts receivable 5,107 5,337
Other assets 1,239 777
Total assets 2,960,234 2,529,705
LIABILITIES    
Non-interest-bearing checking 2,360,403 1,449,101
Interest-bearing checking 36,553 33,320
Savings deposits 49,689 41,720
Money market deposits 48,419 42,222
Time certificates of deposit 73,979 91,171
Total deposits 2,569,043 1,657,534
Advances from Federal Home Loan Bank 57,000 7,000
Federal funds purchased 0 540,000
Securities sold under agreements to repurchase 2,007 4,007
Subordinated debentures 10,310 10,310
Capital lease 2,112 2,143
Accrued interest payable 229 272
Contingent liability 331 331
Accrued expenses and other liabilities 29,625 36,773
Total liabilities 2,670,657 2,258,370
STOCKHOLDERS' EQUITY    
Preferred stock, 3,000,000 shares authorized, no shares issued or outstanding at December 31, 2015 and September 30, 2015, respectively 0 0
Common stock, $.01 par value; 10,000,000 shares authorized, 8,491,936 shares issued and outstanding at December 31, 2015 and 8,183,272 shares issued and 8,163,022 shares outstanding at September 30, 2015 85 82
Additional paid-in capital 184,062 170,749
Retained earnings 101,349 98,359
Accumulated other comprehensive income (loss) 4,081 2,455
Treasury stock, at cost, no common shares at December 31, 2015 and 20,250 common shares at September 30, 2015 0 (310)
Total stockholders' equity 289,577 271,335
Total liabilities and stockholders' equity $ 2,960,234 $ 2,529,705
v3.3.1.900
Condensed Consolidated Statements of Financial Condition (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
Dec. 31, 2015
Sep. 30, 2015
ASSETS    
Loans receivable, allowance for loan losses $ 6,666 $ 6,255
STOCKHOLDERS' EQUITY    
Preferred stock, shares authorized (in shares) 3,000,000 3,000,000
Preferred stock, shares issued (in shares) 0 0
Preferred stock, shares outstanding (in shares) 0 0
Common stock, par value (in dollars per share) $ 0.01 $ 0.01
Common stock, shares authorized (in shares) 10,000,000 10,000,000
Common stock, shares issued (in shares) 8,491,936 8,183,272
Common stock, shares outstanding (in shares) 8,491,936 8,163,022
Treasury stock (in shares) 0 20,250
v3.3.1.900
Condensed Consolidated Statements of Operations (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Interest and dividend income:    
Loans receivable, including fees $ 8,319 $ 6,396
Mortgage-backed securities 3,713 3,824
Other investments 6,243 4,012
Total interest and dividend income 18,275 14,232
Interest expense:    
Deposits 163 232
FHLB advances and other borrowings 557 429
Total interest expense 720 661
Net interest income 17,555 13,571
Provision (recovery) for loan losses 786 48
Net interest income after provision for loan losses 16,769 13,523
Non-interest income:    
Card fees 15,256 13,089
Loan fees 819 314
Bank-owned life insurance 374 286
Deposit fees 162 156
Gain (loss) on sale of securities available for sale, net (Includes $21 and ($1,260) reclassified from accumulated other comprehensive income (loss) for net gains (losses) on available for sale securities for the three months ended December 31, 2015 and 2014, respectively) 21 (1,260)
Gain (loss) on foreclosed real estate 0 26
Other income 202 63
Total non-interest income 16,834 12,674
Non-interest expense:    
Compensation and benefits 14,655 10,531
Card processing 5,234 4,696
Occupancy and equipment 3,379 2,603
Legal and consulting 1,131 1,221
Marketing 502 304
Data processing 341 350
Other expense 4,766 2,708
Total non-interest expense 30,008 22,413
Income before income tax expense 3,595 3,784
Income tax expense (benefit) (Includes $8 and ($457) income tax expense (benefit) reclassified from accumulated other comprehensive income (loss) for the three months ended December 31, 2015 and 2014, respectively) (463) 189
Net income $ 4,058 $ 3,595
Earnings per common share:    
Basic (in dollars per share) $ 0.49 $ 0.58
Diluted (in dollars per share) $ 0.49 $ 0.58
v3.3.1.900
Condensed Consolidated Statements of Operations (Unaudited) (Parenthetical) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Non-interest income:    
Net gain (losses) on available for sale securities reclassified from accumulated other comprehensive income (loss) $ 21 $ (1,260)
Income tax expense (benefit) reclassified from accumulated other comprehensive income $ 8 $ (457)
v3.3.1.900
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Condensed Consolidated Statements of Comprehensive Income (Loss) (Unaudited) [Abstract]    
Net income $ 4,058 $ 3,595
Other comprehensive income (loss):    
Change in net unrealized gain (loss) on securities 2,621 6,512
Losses (gains) realized in net income (21) 1,260
Total available for sale adjustment 2,600 7,772
Deferred income tax effect 974 2,835
Total other comprehensive income (loss) 1,626 4,937
Total comprehensive income (loss) $ 5,684 $ 8,532
v3.3.1.900
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) - USD ($)
$ in Thousands
Common Stock [Member]
Additional Paid-in Capital [Member]
Retained Earnings [Member]
Accumulated Other Comprehensive Income (Loss) [Member]
Treasury Stock [Member]
Total
Balance at Sep. 30, 2014 $ 62 $ 95,079 $ 83,797 $ (3,409) $ (727) $ 174,802
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock 0 0 (805) 0 0 (805)
Issuance of common shares from the sales of equity securities 0 279 0 0 0 279
Issuance of common shares due to issuance of stock options, restricted stock and ESOP 0 18 0 0 417 435
Stock compensation 0 440 0 0 0 440
Net change in unrealized gains on securities, net of income taxes 0 0 0 4,937 0 4,937
Net income 0 0 3,595 0 0 3,595
Balance at Dec. 31, 2014 62 95,816 86,587 1,528 (310) 183,683
Balance at Sep. 30, 2015 82 170,749 98,359 2,455 (310) 271,335
Increase (Decrease) in Stockholders' Equity [Roll Forward]            
Cash dividends declared on common stock 0 0 (1,068) 0 0 (1,068)
Issuance of common shares from the sales of equity securities 3 11,614 0 0 0 11,617
Issuance of common shares due to issuance of stock options, restricted stock and ESOP 0 1,060 0 0 310 1,370
Stock compensation 0 639 0 0 0 639
Net change in unrealized gains on securities, net of income taxes 0 0 0 1,626 0 1,626
Net income 0 0 4,058 0 0 4,058
Balance at Dec. 31, 2015 $ 85 $ 184,062 $ 101,349 $ 4,081 $ 0 $ 289,577
v3.3.1.900
Condensed Consolidated Statements of Changes in Stockholders' Equity (Unaudited) (Parenthetical) - $ / shares
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Increase (Decrease) in Stockholders' Equity [Roll Forward]    
Cash dividends declared on common stock (in dollars per share) $ 0.13 $ 0.13
v3.3.1.900
Condensed Consolidated Statements of Cash Flows (Unaudited) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Cash flows from operating activities:    
Net income $ 4,058 $ 3,595
Adjustments to reconcile net income to net cash provided by (used in) operating activities:    
Depreciation, amortization and accretion, net 8,635 5,702
Provision (recovery) for loan losses 786 48
Provision (recovery) for deferred taxes (1,148) (810)
(Gain) loss on other assets (12) (526)
(Gain) loss on sale of securities available for sale, net (21) 1,260
Capital lease obligations interest expense 32 (32)
Net change in accrued interest receivable (2,954) (1,175)
Change in bank-owned life insurance value (374) (286)
Net change in other assets (1,857) (433)
Net change in accrued interest payable (43) (63)
Net change in accrued expenses and other liabilities (11,436) 3,638
Net cash provided by (used in) operating activities (4,334) 10,918
Cash flows from investing activities:    
Purchase of securities available-for-sale (135,466) (105,864)
Proceeds from sales of securities available-for-sale 27,672 175,362
Proceeds from maturities and principal repayments of securities available-for-sale 25,646 24,691
Purchase of securities held to maturity (69,526) (22,643)
Proceeds from maturities and principal repayments of securities held to maturity 3,029 1,768
Loans sold 0 (102)
Net change in loans receivable (31,660) (23,260)
Proceeds from sales of foreclosed real estate 0 (78)
Net cash paid for acquisition 0 (92,308)
Federal Home Loan Bank stock purchases (193,640) (134,160)
Federal Home Loan Bank stock redemptions 213,240 149,720
Proceeds from the sale of premises and equipment 13 2,096
Purchase of premises and equipment (1,521) (985)
Net cash provided by (used in) investing activities (162,213) (25,763)
Cash flows from financing activities:    
Net change in checking, savings, and money market deposits 928,701 456,488
Net change in time deposits (17,192) (34,150)
Net change in FHLB and other borrowings 50,000 0
Net change in federal funds (540,000) (389,000)
Net change in securities sold under agreements to repurchase (2,000) 3,809
Principal payments on capital lease obligations (31) (13)
Cash dividends paid (1,068) (805)
Stock compensation 639 440
Proceeds from issuance of common stock 12,987 714
Net cash provided by (used in) financing activities 432,036 37,483
Net change in cash and cash equivalents 265,489 22,638
Cash and cash equivalents at beginning of period 27,658 29,832
Cash and cash equivalents at end of period 293,147 52,470
Cash paid during the period for:    
Interest 763 724
Income taxes 1,579 1,706
Franchise taxes 20 20
Supplemental schedule of non-cash investing activities:    
Purchase of available-for-sale securities accrued, not paid 4,264 0
Capital lease obligation 0 2,259
Securities transferred from available for sale to held to maturity $ 0 $ 310
v3.3.1.900
BASIS OF PRESENTATION
 3 Months Ended
Dec. 31, 2015
BASIS OF PRESENTATION [Abstract]  
BASIS OF PRESENTATION
NOTE 1.BASIS OF PRESENTATION
 
The interim unaudited Condensed Consolidated Financial Statements contained herein should be read in conjunction with the audited consolidated financial statements and accompanying notes to the consolidated financial statements for the fiscal year ended September 30, 2015 included in Meta Financial Group, Inc.’s (“Meta Financial” or the “Company”) Annual Report on Form 10-K filed with the Securities and Exchange Commission (“SEC”) on December 14, 2015.  Accordingly, footnote disclosures which would substantially duplicate the disclosures contained in the audited consolidated financial statements have been omitted.
 
The financial information of the Company included herein has been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial reporting and has been prepared pursuant to the rules and regulations for reporting on Form 10-Q and Rule 10-01 of Regulation S-X.  Such information reflects all adjustments (consisting of normal recurring adjustments), that are, in the opinion of management, necessary for a fair presentation of the financial position and results of operations for the periods presented. The results of the three month period ended December 31, 2015, are not necessarily indicative of the results expected for the year ending September 30, 2016.
v3.3.1.900
CREDIT DISCLOSURES
 3 Months Ended
Dec. 31, 2015
CREDIT DISCLOSURES [Abstract]  
CREDIT DISCLOSURES
NOTE 2.CREDIT DISCLOSURES
 
The allowance for loan losses represents management’s estimate of probable loan losses which have been incurred as of the date of the consolidated financial statements.  The allowance for loan losses is increased by a provision for loan losses charged to expense and decreased by charge-offs (net of recoveries).  Estimating the risk of loss and the amount of loss on any loan is necessarily subjective.  Management’s periodic evaluation of the appropriateness of the allowance is based on the Company’s past loan loss experience, known and inherent risks in the portfolio, adverse situations that may affect the borrower’s ability to repay, the estimated value of any underlying collateral, and current economic conditions.  While management may periodically allocate portions of the allowance for specific problem loan situations, the entire allowance is available for any loan charge-offs that occur.
 
Loans are considered impaired if full principal or interest payments are not probable in accordance with the contractual loan terms.  Impaired loans are carried at the present value of expected future cash flows discounted at the loan’s effective interest rate or at the fair value of the collateral if the loan is collateral dependent.  A portion of the allowance for loan losses is allocated to impaired loans if the value of such loans is deemed to be less than the unpaid balance.
 
The allowance consists of specific, general, and unallocated components.  The specific component relates to impaired loans.  For such loans, an allowance is established when the discounted cash flows (or collateral value or observable market price) of the impaired loan is lower than the carrying value of that loan.  The general component covers loans not considered impaired and is based on historical loss experience adjusted for qualitative factors.  An unallocated component is maintained to cover uncertainties that could affect management’s estimate of probable losses.  The unallocated component of the allowance reflects the margin of imprecision inherent in the underlying assumptions used in the methodologies for estimating specific and general losses in the portfolio.
 
Smaller-balance homogenous loans are collectively evaluated for impairment.  Such loans include premium finance loans, residential first mortgage loans secured by one-to-four family residences, residential construction loans, and automobile, manufactured homes, home equity and second mortgage loans.  Commercial and agricultural loans and mortgage loans secured by other properties are evaluated individually for impairment.  When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment.  Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories.  Non-accrual loans and all troubled debt restructurings are considered impaired.  Impaired loans, or portions thereof, are charged off when deemed uncollectible.
 
Loans receivable at December 31, 2015 and September 30, 2015 are as follows:
 
  
December 31, 2015
  
September 30, 2015
 
  
(Dollars in Thousands)
 
     
1-4 Family Real Estate
 
$
134,850
  
$
125,021
 
Commercial and Multi-Family Real Estate
  
322,125
   
310,199
 
Agricultural Real Estate
  
64,181
   
64,316
 
Consumer
  
34,868
   
33,527
 
Commercial Operating
  
37,505
   
29,893
 
Agricultural Operating
  
40,412
   
43,626
 
Premium Finance
  
110,640
   
106,505
 
Total Loans Receivable
  
744,581
   
713,087
 
         
Less:
        
Allowance for Loan Losses
  
(6,666
)
  
(6,255
)
Net Deferred Loan Origination Fees
  
(787
)
  
(577
)
Total Loans Receivable, Net
 
$
737,128
  
$
706,255
 

Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three month periods ended December 31, 2015 and 2014 is as follows:

  
1-4 Family
Real Estate
  
Commercial and
Multi-Family
Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Unallocated
  
Total
 
  
(Dollars in Thousands)
 
Three Months Ended December 31, 2015
 
                   
Allowance for loan losses:
                  
Beginning balance
 
$
278
  
$
1,187
  
$
163
  
$
20
  
$
28
  
$
3,537
  
$
293
  
$
749
  
$
6,255
 
Provision (recovery) for loan losses
  
7
   
7
   
8
   
(0
)
  
79
   
319
   
506
   
(140
)
  
786
 
Charge offs
  
-
   
-
   
-
   
-
   
-
   
-
   
(390
)
  
-
   
(390
)
Recoveries
  
-
   
-
   
-
   
-
   
-
   
-
   
15
   
-
   
15
 
Ending balance
 
$
285
  
$
1,194
  
$
171
  
$
20
  
$
107
  
$
3,856
  
$
424
  
$
609
  
$
6,666
 
                                     
Ending balance: individually evaluated for impairment
  
-
   
235
   
-
   
-
   
-
   
3,614
   
-
   
-
   
3,849
 
Ending balance: collectively evaluated for impairment
  
285
   
959
   
171
   
20
   
107
   
242
   
424
   
609
   
2,817
 
Total
 
$
285
  
$
1,194
  
$
171
  
$
20
  
$
107
  
$
3,856
  
$
424
  
$
609
  
$
6,666
 
                                     
Loans:
                                    
Ending balance: individually evaluated for impairment
  
117
   
1,341
   
-
   
0
   
8
   
4,832
   
-
   
-
   
6,298
 
Ending balance: collectively evaluated for impairment
  
134,733
   
320,784
   
64,181
   
34,868
   
37,497
   
35,580
   
110,640
   
-
   
738,283
 
Total
 
$
134,850
  
$
322,125
  
$
64,181
  
$
34,868
  
$
37,505
  
$
40,412
  
$
110,640
  
$
-
  
$
744,581
 
 
  
1-4 Family
Real Estate
  
Commercial and
Multi-Family
Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Unallocated
  
Total
 
  
(Dollars in Thousands)
 
Three Months Ended December 31, 2014
 
                   
Allowance for loan losses:
                  
Beginning balance
 
$
552
  
$
1,575
  
$
263
  
$
78
  
$
93
  
$
719
  
$
-
  
$
2,117
  
$
5,397
 
Provision (recovery) for loan losses
  
(40
)
  
(169
)
  
3
   
-
   
(9
)
  
(89
)
  
48
   
304
   
48
 
Charge offs
  
-
   
(214
)
  
-
   
-
   
-
   
-
   
(17
)
  
-
   
(231
)
Recoveries
  
-
   
6
   
-
   
-
   
1
   
-
   
4
   
-
   
11
 
Ending balance
 
$
512
  
$
1,198
  
$
266
  
$
78
  
$
85
  
$
630
  
$
35
  
$
2,421
  
$
5,225
 
                                     
Ending balance: individually evaluated for impairment
  
-
   
310
   
-
   
-
   
-
   
296
   
-
   
-
   
606
 
Ending balance: collectively evaluated for impairment
  
512
   
888
   
266
   
78
   
85
   
334
   
35
   
2,421
   
4,619
 
Total
 
$
512
  
$
1,198
  
$
266
  
$
78
  
$
85
  
$
630
  
$
35
  
$
2,421
  
$
5,225
 
                                     
Loans:
                                    
Ending balance: individually evaluated for impairment
  
348
   
1,427
   
-
   
-
   
20
   
296
   
-
   
-
   
2,091
 
Ending balance: collectively evaluated for impairment
  
111,425
   
249,595
   
58,193
   
33,796
   
28,037
   
39,029
   
74,156
   
-
   
594,231
 
Total
 
$
111,773
  
$
251,022
  
$
58,193
  
$
33,796
  
$
28,057
  
$
39,325
  
$
74,156
  
$
-
  
$
596,322
 

Federal regulations provide for the classification of loans and other assets such as debt and equity securities considered by our regulator, the Office of the Comptroller of the Currency (the “OCC”), to be of lesser quality as “substandard,” “doubtful” or “loss.”  The loan classification and risk rating definitions are as follows:

Pass- A pass asset is of sufficient quality in terms of repayment, collateral and management to preclude a special mention or an adverse rating.

Watch- A watch asset is generally credit performing well under current terms and conditions but with identifiable weakness meriting additional scrutiny and corrective measures.  Watch is not a regulatory classification but can be used to designate assets that are exhibiting one or more weaknesses that deserve management’s attention.  These assets are of better quality than special mention assets.

Special Mention- Special mention assets are credits with potential weaknesses deserving management’s close attention and if left uncorrected, may result in deterioration of the repayment prospects for the asset.  Special mention assets are not adversely classified and do not expose an institution to sufficient risk to warrant adverse classification.  Special mention is a temporary status with aggressive credit management required to garner adequate progress and move to watch or higher.

The adverse classifications are as follows:

Substandard- A substandard asset is inadequately protected by the net worth and/or repayment ability or by a weak collateral position.  Assets so classified have well-defined weaknesses creating a distinct possibility that the Bank will sustain some loss if the weaknesses are not corrected.  Loss potential does not have to exist for an asset to be classified as substandard.

Doubtful- A doubtful asset has weaknesses similar to those classified substandard, with the degree of weakness causing the likely loss of some principal in any reasonable collection effort.  Due to pending factors the asset’s classification as loss is not yet appropriate.

Loss- A loss asset is considered uncollectible and of such little value that the asset’s continuance on the Bank’s balance sheet is no longer warranted.  This classification does not necessarily mean an asset has no recovery or salvage value leaving room for future collection efforts.
 
General allowances represent loss allowances which have been established to recognize the inherent risk associated with lending activities, but which, unlike specific allowances, have not been allocated to particular problem assets.  When assets are classified as “loss,” the Bank is required either to establish a specific allowance for losses equal to 100% of that portion of the asset so classified or to charge-off such amount.  The Bank’s determinations as to the classification of its assets and the amount of its valuation allowances are subject to review by its regulatory authorities, which may order the establishment of additional general or specific loss allowances.
                                        
The Company recognizes that concentrations of credit may naturally occur and may take the form of a large volume of related loans to an individual, a specific industry, a geographic location, or an occupation.  Credit concentration is a direct, indirect, or contingent obligation that has a common bond where the aggregate exposure equals or exceeds a certain percentage of the Bank’s Tier 1 Capital plus the Allowance for Loan Losses.
 
The asset classification of loans at December 31, 2015 and September 30, 2015 are as follows:

December 31, 2015
 
1-4 Family Real Estate
  
Commercial and Multi-Family Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Total
 
  
(Dollars in Thousands)
 
                 
Pass
 
$
133,824
  
$
319,608
  
$
33,275
  
$
34,868
  
$
36,598
  
$
27,978
  
$
110,640
  
$
696,791
 
Watch
  
994
   
1,619
   
28,357
   
0
   
797
   
986
   
-
   
32,753
 
Special Mention
  
9
   
-
   
877
   
-
   
-
   
4,114
   
-
   
5,000
 
Substandard
  
23
   
898
   
1,672
   
-
   
110
   
4,877
   
-
   
7,580
 
Doubtful
  
-
   
-
   
-
   
-
   
-
   
2,457
   
-
   
2,457
 
  
$
134,850
  
$
322,125
  
$
64,181
  
$
34,868
  
$
37,505
  
$
40,412
  
$
110,640
  
$
744,581
 

September 30, 2015
 
1-4 Family Real Estate
  
Commercial and Multi-Family Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Total
 
  
(Dollars in Thousands)
 
                 
Pass
 
$
124,775
  
$
307,876
  
$
35,106
  
$
33,527
  
$
29,052
  
$
29,336
  
$
106,505
  
$
666,177
 
Watch
  
212
   
1,419
   
26,703
   
-
   
712
   
1,079
   
-
   
30,125
 
Special Mention
  
10
   
-
   
877
   
-
   
-
   
4,014
   
-
   
4,901
 
Substandard
  
24
   
904
   
1,630
   
-
   
129
   
9,197
   
-
   
11,884
 
Doubtful
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
  
$
125,021
  
$
310,199
  
$
64,316
  
$
33,527
  
$
29,893
  
$
43,626
  
$
106,505
  
$
713,087
 

One-to-Four Family Residential Mortgage Lending.  One-to-four family residential mortgage loan originations are generated by the Company’s marketing efforts, its present customers, walk-in customers and referrals. The Company offers fixed-rate and adjustable rate mortgage (“ARM”) loans for both permanent structures and those under construction.  The Company’s one-to-four family residential mortgage originations are secured primarily by properties located in its primary market area and surrounding areas.
 
The Company originates one-to-four family residential mortgage loans with terms up to a maximum of 30 years and with loan-to-value ratios up to 100% of the lesser of the appraised value of the security property or the contract price.  The Company generally requires that private mortgage insurance be obtained in an amount sufficient to reduce the Company’s exposure to at or below the 80% loan‑to‑value level, unless the loan is insured by the Federal Housing Administration, guaranteed by Veterans Affairs or guaranteed by the Rural Housing Administration.  Residential loans generally do not include prepayment penalties.
 
The Company currently offers five- and ten-year ARM loans.  These loans have a fixed-rate for the stated period and, thereafter, adjust annually.  These loans generally provide for an annual cap of up to 200 basis points and a lifetime cap of 600 basis points over the initial rate.  As a consequence of using an initial fixed-rate and caps, the interest rates on these loans may not be as rate sensitive as the Company’s cost of funds.  The Company’s ARMs do not permit negative amortization of principal and are not convertible into fixed-rate loans.  The Company’s delinquency experience on its ARM loans has generally been similar to its experience on fixed-rate residential loans.  The current low mortgage interest rate environment makes ARM loans relatively unattractive and very few are currently being originated.
 
Due to consumer demand, the Company also offers fixed-rate mortgage loans with terms up to 30 years, most of which conform to secondary market, i.e., Fannie Mae, Ginnie Mae, and Freddie Mac standards.  The Company typically holds all fixed-rate mortgage loans and does not engage in secondary market sales.  Interest rates charged on these fixed-rate loans are competitively priced according to market conditions.
 
In underwriting one-to-four family residential real estate loans, the Company evaluates both the borrower’s ability to make monthly payments and the value of the property securing the loan.  Properties securing real estate loans made by the Company are appraised by independent appraisers approved by the Board of Directors.  The Company generally requires borrowers to obtain an attorney’s title opinion or title insurance, and fire and property insurance (including flood insurance, if necessary) in an amount not less than the amount of the loan.  Real estate loans originated by the Company generally contain a “due on sale” clause allowing the Company to declare the unpaid principal balance due and payable upon the sale of the security property.  The Company has not engaged in sub-prime residential mortgage originations.
 
Commercial and Multi-Family Real Estate Lending.  The Company engages in commercial and multi-family real estate lending in its primary market area and surrounding areas and, in order to supplement its loan portfolio, has purchased whole loan and participation interests in loans from other financial institutions.  The purchased loans and loan participation interests are generally secured by properties primarily located in the Midwest and the West.
 
The Company’s commercial and multi-family real estate loan portfolio is secured primarily by apartment buildings, office buildings, and hotels.  Commercial and multi-family real estate loans generally are underwritten with terms not exceeding 20 years, have loan-to-value ratios of up to 80% of the appraised value of the security property, and are typically secured by personal guarantees of the borrowers.  The Company has a variety of rate adjustment features and other terms in its commercial and multi-family real estate loan portfolio.  Commercial and multi-family real estate loans provide for a margin over a number of different indices.  In underwriting these loans, the Company analyzes the financial condition of the borrower, the borrower’s credit history, and the reliability and predictability of the cash flow generated by the property securing the loan.  Appraisals on properties securing commercial real estate loans originated by the Company are performed by independent appraisers.
 
Commercial and multi-family real estate loans generally present a higher level of risk than loans secured by one-to-four family residences.  This greater risk is due to several factors, including the concentration of principal in a limited number of loans and borrowers, the effect of general economic conditions on income producing properties and the increased difficulty of evaluating and monitoring these types of loans.  Furthermore, the repayment of loans secured by commercial and multi-family real estate is typically dependent upon the successful operation of the related real estate project.  If the cash flow from the project is reduced (for example, if leases are not obtained or renewed, or a bankruptcy court modifies a lease term, or a major tenant is unable to fulfill its lease obligations), the borrower’s ability to repay the loan may be impaired.
 
Agricultural Lending.  The Company originates loans to finance the purchase of farmland, livestock, farm machinery and equipment, seed, fertilizer and other farm-related products.  Agricultural operating loans are originated at either an adjustable or fixed-rate of interest for up to a one year term or, in the case of livestock, upon sale.  Such loans provide for payments of principal and interest at least annually or a lump sum payment upon maturity if the original term is less than one year.  Loans secured by agricultural machinery are generally originated as fixed-rate loans with terms of up to seven years.
 
Agricultural real estate loans are frequently originated with adjustable rates of interest.  Generally, such loans provide for a fixed rate of interest for the first five to ten years, which then balloon or adjust annually thereafter.  In addition, such loans generally amortize over a period of 20 to 25 years.  Fixed-rate agricultural real estate loans generally have terms up to ten years.  Agricultural real estate loans are generally limited to 75% of the value of the property securing the loan.
 
Agricultural lending affords the Company the opportunity to earn yields higher than those obtainable on one-to-four family residential lending, but involves a greater degree of risk than one-to-four family residential mortgage loans because of the typically larger loan amount.  In addition, payments on loans are dependent on the successful operation or management of the farm property securing the loan or for which an operating loan is utilized.  The success of the loan may also be affected by many factors outside the control of the borrower.
 
Weather presents one of the greatest risks as hail, drought, floods, or other conditions can severely limit crop yields and thus impair loan repayments and the value of the underlying collateral.  This risk can be reduced by the farmer with a variety of insurance coverages which can help to ensure loan repayment.  Government support programs and the Company generally require that farmers procure crop insurance coverage.  Grain and livestock prices also present a risk as prices may decline prior to sale, resulting in a failure to cover production costs.  These risks may be reduced by the farmer with the use of futures contracts or options to mitigate price risk.  The Company frequently requires borrowers to use futures contracts or options to reduce price risk and help ensure loan repayment.  Another risk is the uncertainty of government programs and other regulations.  During periods of low commodity prices, the income from government programs can be a significant source of cash for the borrower to make loan payments, and if these programs are discontinued or significantly changed, cash flow problems or defaults could result.  Finally, many farms are dependent on a limited number of key individuals whose injury or death may result in an inability to successfully operate the farm.
 
Consumer Lending – Retail Bank.  The Company, through the auspices of its “Retail Bank”, originates a variety of secured consumer loans, including home equity, home improvement, automobile, boat and loans secured by savings deposits.  In addition, the Retail Bank offers other secured and unsecured consumer loans.  The Retail Bank currently originates most of its consumer loans in its primary market area and surrounding areas.
 
The largest component of the Retail Bank’s consumer loan portfolio consists of home equity loans and lines of credit.  Substantially all of the Retail Bank’s home equity loans and lines of credit are secured by second mortgages on principal residences.  The Retail Bank will lend amounts which, together with all prior liens, may be up to 90% of the appraised value of the property securing the loan.  Home equity loans and lines of credit generally have maximum terms of five years.
 
The Retail Bank primarily originates automobile loans on a direct basis to the borrower, as opposed to indirect loans, which are made when the Retail Bank purchases loan contracts, often at a discount, from automobile dealers which have extended credit to their customers.  The Bank’s automobile loans typically are originated at fixed interest rates with terms up to 60 months for new and used vehicles.  Loans secured by automobiles are generally originated for up to 80% of the N.A.D.A. book value of the automobile securing the loan.
 
Consumer loan terms vary according to the type and value of collateral, length of contract and creditworthiness of the borrower.  The underwriting standards employed by the Bank for consumer loans include an application, a determination of the applicant’s payment history on other debts and an assessment of ability to meet existing obligations and payments on the proposed loan.  Although creditworthiness of the applicant is a primary consideration, the underwriting process also may include a comparison of the value of the security, if any, in relation to the proposed loan amount.
 
Consumer loans may entail greater credit risk than residential mortgage loans, particularly in the case of consumer loans which are unsecured or are secured by rapidly depreciable assets, such as automobiles or recreational equipment.  In such cases, any repossessed collateral for a defaulted consumer loan may not provide an adequate source of repayment of the outstanding loan balance as a result of the greater likelihood of damage, loss or depreciation.  In addition, consumer loan collections are dependent on the borrower’s continuing financial stability, and thus more likely to be affected by adverse personal circumstances.  Furthermore, the application of various federal and state laws, including bankruptcy and insolvency laws, may limit the amount which can be recovered on such loans.
 
Consumer Lending- Meta Payment Systems (“MPS”).  The Company believes that well-managed, nationwide credit programs can help meet legitimate credit needs for prime and sub-prime borrowers, and affords the Company an opportunity to diversify the loan portfolio and minimize earnings exposure due to economic downturns.  Therefore, MPS designs and administers certain credit programs that seek to accomplish these objectives.  The MPS Credit Committee, consisting of members of Executive Management of the Company, is charged with monitoring, evaluating and reporting portfolio performance and the overall credit risk posed by its credit products. All proposed credit programs must first be reviewed and approved by the committee before such programs are presented to the Bank’s Board of Directors for approval.  The Board of Directors of the Bank is ultimately responsible for final approval of any credit program.
 
MPS strives to offer consumers innovative payment products, including credit products.  Most credit products have fallen into the category of portfolio lending.  MPS continues to work on new alternative portfolio lending products striving to serve its core customer base and to provide unique and innovative lending solutions to the unbanked and under-banked segment.
 
A Portfolio Credit Policy which has been approved by the Board of Directors governs portfolio credit initiatives undertaken by MPS, whereby the Company retains some or all receivables and relies on the borrower as the underlying source of repayment.  Several portfolio lending programs also have a contractual provision that requires the Bank to be indemnified for credit losses that meet or exceed predetermined levels.  Such a program carries additional risks not commonly found in sponsorship programs, specifically funding and credit risk.  Therefore, MPS has strived to employ policies, procedures and information systems that it believes commensurate with the added risk and exposure.
 
Commercial Operating Lending.  The Company also originates commercial operating loans.  Most of the Company’s commercial operating loans have been extended to finance local and regional businesses and include short-term loans to finance machinery and equipment purchases, inventory and accounts receivable, and operating costs for the Company’s network of tax Electronic Return Originators (“EROs”).  Commercial loans also may involve the extension of revolving credit for a combination of equipment acquisitions and working capital in expanding companies.
 
The maximum term for loans extended on machinery and equipment is based on the projected useful life of such machinery and equipment.  Generally, the maximum term on non-mortgage lines of credit is one year.  The loan-to-value ratio on such loans and lines of credit generally may not exceed 80% of the value of the collateral securing the loan.  ERO loans are not collateralized.  The Company’s commercial operating lending policy includes credit file documentation and analysis of the borrower’s character, capacity to repay the loan, the adequacy of the borrower’s capital and collateral as well as an evaluation of conditions affecting the borrower.  Analysis of the borrower’s past, present and future cash flows is also an important aspect of the Company’s current credit analysis.  Nonetheless, such loans are believed to carry higher credit risk than more traditional lending activities.
 
Unlike residential mortgage loans, which generally are made on the basis of the borrower’s ability to make repayment from his or her employment and other income and which are secured by real property whose value tends to be more easily ascertainable, commercial operating loans typically are made on the basis of the borrower’s ability to make repayment from the cash flow of the borrower’s business.  As a result, the availability of funds for the repayment of commercial operating loans may be substantially dependent on the success of the business itself (which, in turn, is likely to be dependent upon the general economic environment).  The Company’s commercial operating loans are usually, but not always, secured by business assets and personal guarantees.  However, the collateral securing the loans may depreciate over time, may be difficult to appraise and may fluctuate in value based on the success of the business.  At December 31, 2015, none of the Company’s commercial operating loans were non-performing.
 
Premium Finance Lending.  Through its AFS/IBEX division, MetaBank provides short-term, primarily collateralized financing to facilitate the commercial customers’ purchase of insurance for various forms of risk otherwise known as insurance premium financing.  This includes, but is not limited to, policies for commercial property, casualty and liability risk.  The AFS/IBEX division markets itself to the insurance community as a competitive option based on service, reputation, competitive terms, cost and ease of operation.
 
Insurance premium financing is the business of extending credit to a policyholder to pay for insurance premiums when the insurance carrier requires payment in full at inception of coverage.  Premiums are advanced either directly to the insurance carrier or through an intermediary/broker and repaid by the policyholder with interest during the policy term.  The policyholder generally makes a 20% to 25% down payment to the insurance broker and finances the remainder over nine to ten months on average.  The down payment is set such that if the policy is cancelled, the unearned premium is typically sufficient to cover the loan balance and accrued interest.

Due to the nature of collateral for commercial premium finance receivables, it customarily takes 60-150 days to convert the collateral into cash.  In the event of default, AFS/IBEX, by statute and contract, has the power to cancel the insurance policy and establish a first position lien on the unearned portion of the premium from the insurance carrier. In the event of cancellation, the cash returned in payment of the unearned premium by the insurer should typically be sufficient to cover the receivable balance, the interest and other charges due. Due to notification requirements and processing time by most insurance carriers, many receivables will become delinquent beyond 90 days while the insurer is processing the return of the unearned premium.  Generally, when a premium finance loan becomes delinquent for 210 days or more, or when collection of principal or interest becomes doubtful, the Company will place the loan on non-accrual status until the loan becomes current and has demonstrated a sustained period of satisfactory performance.
 
Past due loans at December 31, 2015 and September 30, 2015 are as follows:
 
December 31, 2015
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
Greater Than
90 Days
  
Total Past
Due
  
Current
  
Non-Accrual
Loans
  
Total Loans
Receivable
 
  
(Dollars in Thousands)
 
               
1-4 Family Real Estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
134,827
  
$
23
  
$
134,850
 
Commercial and Multi-Family Real Estate
  
-
   
-
   
-
   
-
   
321,228
   
897
   
322,125
 
Agricultural Real Estate
  
3,548
   
1,060
   
-
   
4,608
   
59,573
   
-
   
64,181
 
Consumer
  
-
   
-
   
26
   
26
   
34,842
   
-
   
34,868
 
Commercial Operating
  
-
   
-
   
-
   
-
   
37,505
   
-
   
37,505
 
Agricultural Operating
  
-
   
-
   
-
   
-
   
35,580
   
4,832
   
40,412
 
Premium Finance
  
778
   
440
   
856
   
2,074
   
108,566
   
-
   
110,640
 
Total
 
$
4,326
  
$
1,500
  
$
882
  
$
6,708
  
$
732,121
  
$
5,752
  
$
744,581
 

September 30, 2015
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
Greater Than
90 Days
  
Total Past
Due
  
Current
  
Non-Accrual
Loans
  
Total Loans
Receivable
 
  
(Dollars in Thousands)
 
               
1-4 Family Real Estate
 
$
142
  
$
-
  
$
-
  
$
142
  
$
124,855
  
$
24
  
$
125,021
 
Commercial and Multi-Family Real Estate
  
-
   
-
   
-
   
-
   
309,295
   
904
   
310,199
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
64,316
   
-
   
64,316
 
Consumer
  
152
   
-
   
13
   
165
   
33,362
   
-
   
33,527
 
Commercial Operating
  
-
   
-
   
-
   
-
   
29,893
   
-
   
29,893
 
Agricultural Operating
  
-
   
-
   
-
   
-
   
38,494
   
5,132
   
43,626
 
Premium Finance
  
702
   
362
   
1,728
   
2,792
   
103,713
   
-
   
106,505
 
Total
 
$
996
  
$
362
  
$
1,741
  
$
3,099
  
$
703,928
  
$
6,060
  
$
713,087
 
 
When analysis of borrower operating results and financial condition indicates that underlying cash flows of the borrower’s business are not adequate to meet its debt service requirements, the loan is evaluated for impairment.  Often this is associated with a delay or shortfall in payments of 210 days or more for premium finance loans and 90 days or more for other loan categories.  As of December 31, 2015, there were no Premium Finance loans greater than 210 days past due.
 
Impaired loans at December 31, 2015 and September 30, 2015 are as follows:

  
Recorded
Balance
  
Unpaid Principal
Balance
  
Specific
Allowance
 
December 31, 2015
 
(Dollars in Thousands)
 
       
Loans without a specific valuation allowance
      
1-4 Family Real Estate
 
$
117
  
$
117
  
$
-
 
Commercial and Multi-Family Real Estate
  
443
   
443
   
-
 
Commercial Operating
  
8
   
8
   
-
 
Total
 
$
568
  
$
568
  
$
-
 
Loans with a specific valuation allowance
            
Commercial and Multi-Family Real Estate
 
$
898
  
$
898
  
$
235
 
Agricultural Operating
  
4,832
   
4,982
   
3,614
 
Total
 
$
5,730
  
$
5,880
  
$
3,849
 

  
Recorded
Balance
  
Unpaid Principal
Balance
  
Specific
Allowance
 
September 30, 2015
 
(Dollars in Thousands)
 
       
Loans without a specific valuation allowance
      
1-4 Family Real Estate
 
$
121
  
$
121
  
$
-
 
Commercial and Multi-Family Real Estate
  
446
   
446
   
-
 
Commercial Operating
  
11
   
11
   
-
 
Total
 
$
578
  
$
578
  
$
-
 
Loans with a specific valuation allowance
            
Commercial and Multi-Family Real Estate
 
$
904
  
$
904
  
$
241
 
Agricultural Operating
  
5,132
   
5,282
   
3,252
 
Total
 
$
6,036
  
$
6,186
  
$
3,493
 

The following table provides the average recorded investment in impaired loans for the three month periods ended December 31, 2015 and 2014.
 
  
Three Months Ended December 31,
 
  
2015
  
2014
 
  
Average
Recorded
Investment
  
Average
Recorded
Investment
 
  
(Dollars in Thousands)
 
     
1-4 Family Real Estate
 
$
119
  
$
374
 
Commercial and Multi-Family Real Estate
  
1,347
   
4,246
 
Agricultural Real Estate
  
-
   
-
 
Consumer
  
-
   
-
 
Commercial Operating
  
10
   
22
 
Agricultural Operating
  
5,032
   
325
 
Premium Finance
  
-
   
-
 
Total
 
$
6,508
  
$
4,967
 
 
The Company’s troubled debt restructurings (“TDR”) typically involve forgiving a portion of interest or principal on existing loans or making loans at a rate materially less than current market rates. There were no loans modified in a TDR during the three month periods ended December 31, 2015 and 2014.  Additionally, there were no TDR loans for which there was a payment default during the three month periods ended December 31, 2015 and 2014 that had been modified during the 12-month period prior to the default.
v3.3.1.900
ALLOWANCE FOR LOAN LOSSES
 3 Months Ended
Dec. 31, 2015
ALLOWANCE FOR LOAN LOSSES [Abstract]  
ALLOWANCE FOR LOAN LOSSES
NOTE 3.ALLOWANCE FOR LOAN LOSSES
 
At December 31, 2015, the Company’s allowance for loan losses was $6.7 million, an increase of $0.4 million from $6.3 million at September 30, 2015.  During the three months ended December 31, 2015, the Company recorded a provision for loan losses of $0.8 million, primarily due to loan growth and a premium finance loan charge off. In addition, the Company had $0.4 million net charge offs for the three months ended December 31, 2015, compared to $0.2 million for the three months ended December 31, 2014.
 
The allowance for loan losses is established through a provision for loan losses based on management’s evaluation of the risk inherent in its loan portfolio and changes in the nature and volume of its loan activity, including those loans which are being specifically monitored by management.  Such evaluation, which includes a review of loans for which full collectability may not be reasonably assured, considers, among other matters, the estimated fair value of the underlying collateral, economic conditions, historical loan loss experience and other factors that warrant recognition in providing for an appropriate loan loss allowance.
 
Management closely monitors economic developments both regionally and nationwide, and considers these factors when assessing the appropriateness of its allowance for loan losses.  The current economic environment continues to show signs of improvement in the Bank’s markets.  The Bank’s loss rates over the past five years were very low.  Notwithstanding these signs of improvement, the Bank does not believe it is likely these low loss conditions will continue indefinitely.  All of the Bank’s four market areas have indirectly benefitted from a stable agricultural market.  Loss rates in the agricultural real estate and agricultural operating loan portfolios have been minimal in the past five years.  Management expects that future losses in this portfolio could be higher than recent historical experience.  Management believes the low commodity prices and high land rents have the potential to negatively impact the economies of our agricultural markets.
 
 The allowance for loan losses established by MPS results from an estimation process that evaluates relevant characteristics of its credit portfolio.  MPS also considers other internal and external environmental factors such as changes in operations or personnel and economic events that may affect the adequacy of the allowance for credit losses.  Adjustments to the allowance for loan losses are recorded periodically based on the result of this estimation process.
 
Management believes that, based on a detailed review of the loan portfolio, historic loan losses, current economic conditions, the size of the loan portfolio and other factors, the current level of the allowance for loan losses at December 31, 2015, reflects an appropriate allowance against probable losses from the loan portfolio.  Although the Company maintains its allowance for loan losses at a level it considers to be appropriate, investors and others are cautioned that there can be no assurance that future losses will not exceed estimated amounts, or that additional provisions for loan losses will not be required in future periods.  In addition, the Company’s determination of the allowance for loan losses is subject to review by the OCC, which can require the establishment of additional general or specific allowances.
 
Real estate properties acquired through foreclosure are recorded at fair value.  If fair value at the date of foreclosure is lower than the balance of the related loan, the difference will be charged to the allowance for loan losses at the time of transfer.  Valuations are periodically updated by management and, if the value declines, a specific provision for losses on such property is established by a charge to operations.
v3.3.1.900
EARNINGS PER COMMON SHARE ("EPS")
 3 Months Ended
Dec. 31, 2015
EARNINGS PER COMMON SHARE ("EPS") [Abstract]  
EARNINGS PER COMMON SHARE ("EPS")
NOTE 4.EARNINGS PER COMMON SHARE (“EPS”)
 
Basic EPS is based on the net income divided by the weighted average number of common shares outstanding during the period.  Allocated Employee Stock Ownership Plan (“ESOP”) shares are considered outstanding for EPS calculations, as they are committed to be released; unallocated ESOP shares are not considered outstanding.  All ESOP shares were allocated as of December 31, 2015 and September 30, 2015.  Diluted EPS shows the dilutive effect of additional common shares issuable pursuant to stock option agreements.
 
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three months ended December 31, 2015 and 2014 is presented below.
 
Three Months Ended December 31,
 
2015
  
2014
 
(Dollars in Thousands, Except Share and Per Share Data)
 
   
     
Earnings
    
Net Income
 
$
4,058
  
$
3,595
 
         
Basic EPS
        
Weighted average common shares outstanding
  
8,245,368
   
6,182,080
 
Less weighted average nonvested shares
  
(27,311
)
  
(4,000
)
Weighted average common shares outstanding
  
8,218,057
   
6,178,080
 
         
Earnings Per Common Share
        
Basic
 
$
0.49
  
$
0.58
 
         
Diluted EPS
        
Weighted average common shares outstanding for basic earnings per common share
  
8,218,057
   
6,178,080
 
Add dilutive effect of assumed exercises of stock options, net of tax benefits
  
66,198
   
61,276
 
Weighted average common and dilutive potential common shares outstanding
  
8,284,255
   
6,239,356
 
         
Earnings Per Common Share
        
Diluted
 
$
0.49
  
$
0.58
 

All stock options were considered in computing diluted EPS for the three months ended December 31, 2015.  Stock options totaling 29,199 were not considered in computing diluted EPS for the three months ended December 31, 2014, because they were not dilutive.
 
v3.3.1.900
SECURITIES
 3 Months Ended
Dec. 31, 2015
SECURITIES [Abstract]  
SECURITIES
NOTE 5. 
SECURITIES

The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at December 31, 2015 and September 30, 2015 are presented below.

Available For Sale
 
At December 31, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred securities
 
$
14,932
  
$
-
  
$
(2,547
)
 
$
12,385
 
Small business administration securities
  
83,704
   
1,202
   
(235
)
  
84,671
 
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
 
Non-bank qualified obligations of states and political subdivisions
  
650,267
   
13,922
   
(689
)
  
663,500
 
Mortgage-backed securities
  
586,217
   
712
   
(8,572
)
  
578,357
 
Total debt securities
  
1,335,120
   
15,836
   
(12,043
)
  
1,338,913
 
Common equities and mutual funds
  
730
   
308
   
(10
)
  
1,028
 
Total available for sale securities
 
$
1,335,850
  
$
16,144
  
$
(12,053
)
 
$
1,339,941
 

  
At September 30, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred and corporate securities
 
$
16,199
  
$
8
  
$
(2,263
)
 
$
13,944
 
Small business administration securities
  
54,493
   
1,563
   
-
   
56,056
 
Non-bank qualified obligations of states and political subdivisions
  
603,165
   
7,240
   
(1,815
)
  
608,590
 
Mortgage-backed securities
  
580,165
   
1,283
   
(4,865
)
  
576,583
 
Total debt securities
  
1,254,022
   
10,094
   
(8,943
)
  
1,255,173
 
Common equities and mutual funds
  
639
   
283
   
(8
)
  
914
 
Total available for sale securities
 
$
1,254,661
  
$
10,377
  
$
(8,951
)
 
$
1,256,087
 

 
Held to Maturity
 
At December 31, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Obligations of states and political subdivisions
 
$
20,699
  
$
102
  
$
(102
)
 
$
20,699
 
Non-bank qualified obligations of states and political subdivisions
  
320,260
   
3,789
   
(890
)
  
323,159
 
Mortgage-backed securities
  
70,376
   
-
   
(1,152
)
  
69,224
 
Total held to maturity securities
 
$
411,335
  
$
3,891
  
$
(2,144
)
 
$
413,082
 
 
  
At September 30, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Obligations of states and political subdivisions
 
$
19,540
  
$
60
  
$
(187
)
 
$
19,413
 
Non-bank qualified obligations of states and political subdivisions
  
259,627
   
2,122
   
(419
)
  
261,330
 
Mortgage-backed securities
  
66,577
   
-
   
(473
)
  
66,104
 
Total held to maturity securities
 
$
345,744
  
$
2,182
  
$
(1,079
)
 
$
346,847
 

Included in securities available for sale are trust preferred securities as follows:
 
At December 31, 2015
 
Issuer(1)
   
Amortized Cost
      
Fair Value
      
Unrealized
Gain (Loss)
      
S&P
Credit Rating
  
     
Moody's
Credit Rating
  
(Dollars in Thousands)
    
  
  
  
  
    
      
Key Corp. Capital I
 
$
4,987
  
$
4,069
  
$
(918
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
  
4,979
   
3,925
   
(1,054
)
 
BB
 
Baa2
PNC Capital Trust
  
4,966
   
4,391
   
(575
)
 
BBB-
 
Baa1
Total
 
$
14,932
  
$
12,385
  
$
(2,547
)
   
  
                

(1)Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

At September 30, 2015
 
Issuer(1)
   
Amortized Cost
      
Fair Value
      
Unrealized
Gain (Loss)
      
S&P
Credit Rating
  
     
Moody's
Credit Rating
 
 
(Dollars in Thousands)
    
  
 
 
  
  
    
      
Key Corp. Capital I
 
$
4,986
  
$
4,189
  
$
(797
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
  
4,979
   
4,076
   
(903
)
 
BB
 
Baa2
PNC Capital Trust
  
4,965
   
4,402
   
(563
)
 
BBB-
 
Baa1
Total
 
$
14,930
  
$
12,667
  
$
(2,263
)
   
  
                

(1)Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

Management has implemented a process to identify securities with potential credit impairment that are other-than-temporary.  This process involves evaluation of the length of time and extent to which the fair value has been less than the amortized cost basis, review of available information regarding the financial position of the issuer, monitoring the rating, watch, and outlook of the security, monitoring changes in value, cash flow projections, and the Company’s intent to sell a security or whether it is more likely than not we 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 we determine that a security is deemed to be other-than-temporarily impaired, an impairment loss is recognized.
 
For all securities considered temporarily impaired, the Company does not intend to sell these securities and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost, which may occur at maturity.  The Company believes it will collect all principal and interest due on all investments with amortized cost in excess of fair value and considered only temporarily impaired.

Generally accepted accounting principles require that, at acquisition, an enterprise classify debt securities into one of three categories: Available for sale (“AFS”), Held to Maturity (“HTM”) or trading. AFS securities are carried at fair value on the consolidated statements of financial condition, and unrealized holding gains and losses are excluded from earnings and recognized as a separate component of equity in accumulated other comprehensive income (“AOCI”). HTM debt securities are measured at amortized cost. Both AFS and HTM are subject to review for other-than-temporary impairment. The Company had no trading securities at December 31, 2015 and September 30, 2015.

Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and September 30, 2015, are as follows:

Available For Sale
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At December 31, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Trust preferred securities
 
$
-
  
$
-
  
$
12,385
  
$
(2,547
)
 
$
12,385
  
$
(2,547
)
Small Business Administration securities
  
28,992
   
(235
)
  
-
   
-
   
28,992
   
(235
)
Non-bank qualified obligations of states and political subdivisions
  
20,924
   
(203
)
  
34,033
   
(486
)
  
54,957
   
(689
)
Mortgage-backed securities
  
498,285
   
(7,635
)
  
45,754
   
(937
)
  
544,039
   
(8,572
)
Total debt securities
  
548,201
   
(8,073
)
  
92,172
   
(3,970
)
  
640,373
   
(12,043
)
Common equities and mutual funds
  
-
   
-
   
119
   
(10
)
  
119
   
(10
)
Total available for sale securities
 
$
548,201
  
$
(8,073
)
 
$
92,291
  
$
(3,980
)
 
$
640,492
  
$
(12,053
)

  
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At September 30, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Trust preferred and corporate securities
 
$
-
  
$
-
  
$
12,667
  
$
(2,263
)
 
$
12,667
  
$
(2,263
)
Non-bank qualified obligations of states and political subdivisions
  
97,006
   
(860
)
  
42,583
   
(955
)
  
139,589
   
(1,815
)
Mortgage-backed securities
  
448,988
   
(4,301
)
  
48,079
   
(564
)
  
497,067
   
(4,865
)
Total debt securities
  
545,994
   
(5,161
)
  
103,329
   
(3,782
)
  
649,323
   
(8,943
)
Common equities and mutual funds
  
-
   
-
   
121
   
(8
)
  
121
   
(8
)
Total available for sale securities
 
$
545,994
  
$
(5,161
)
 
$
103,450
  
$
(3,790
)
 
$
649,444
  
$
(8,951
)
 
Held To Maturity
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
At December 31, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Obligations of states and political subdivisions
 
$
3,763
  
$
(8
)
 
$
8,560
  
$
(94
)
 
$
12,323
  
$
(102
)
Non-bank qualified obligations of states and political subdivisions
  
114,703
   
(811
)
  
9,679
   
(79
)
  
124,382
   
(890
)
Mortgage-backed securities
  
11,362
   
(140
)
  
57,863
   
(1,012
)
  
69,225
   
(1,152
)
Total held to maturity securities
 
$
129,828
  
$
(959
)
 
$
76,102
  
$
(1,185
)
 
$
205,930
  
$
(2,144
)

  
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
At September 30, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Obligations of states and political subdivisions
 
$
5,528
  
$
(34
)
 
$
7,964
  
$
(153
)
 
$
13,492
  
$
(187
)
Non-bank qualified obligations of states and political subdivisions
  
78,663
   
(365
)
  
4,136
   
(54
)
  
82,799
   
(419
)
Mortgage-backed securities
  
5,509
   
(43
)
  
60,595
   
(430
)
  
66,104
   
(473
)
Total held to maturity securities
 
$
89,700
  
$
(442
)
 
$
72,695
  
$
(637
)
 
$
162,395
  
$
(1,079
)

At December 31, 2015, the investment portfolio included securities with current unrealized losses which have existed for longer than one year.  All of these securities are considered to be acceptable credit risks.  Because the declines in fair value were due to changes in market interest rates, not in estimated cash flows, and the Company does not intend to sell these securities (has not made a decision to sell) and it is not more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis, which may occur at maturity, no other-than-temporary impairment was recorded at December 31, 2015.

The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Available For Sale
 
AMORTIZED
COST
  
FAIR
VALUE
 
At December 31, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
3,202
   
3,269
 
Due after five years through ten years
  
416,377
   
425,445
 
Due after ten years
  
329,324
   
331,842
 
   
748,903
   
760,556
 
Mortgage-backed securities
  
586,217
   
578,357
 
Common equities and mutual funds
  
730
   
1,028
 
Total available for sale securities
 
$
1,335,850
  
$
1,339,941
 
 
  
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
1,174
   
1,207
 
Due after five years through ten years
  
370,087
   
376,394
 
Due after ten years
  
302,596
   
300,989
 
   
673,857
   
678,590
 
Mortgage-backed securities
  
580,165
   
576,583
 
Common equities and mutual funds
  
639
   
914
 
Total available for sale securities
 
$
1,254,661
  
$
1,256,087
 
                              
Held To Maturity
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
At December 31, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
225
  
$
226
 
Due after one year through five years
  
9,488
   
9,475
 
Due after five years through ten years
  
143,173
   
145,014
 
Due after ten years
  
188,073
   
189,143
 
   
340,959
   
343,858
 
Mortgage-backed securities
  
70,376
   
69,224
 
Total held to maturity securities
 
$
411,335
  
$
413,082
 

  
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
95
  
$
96
 
Due after one year through five years
  
8,411
   
8,430
 
Due after five years through ten years
  
140,145
   
140,505
 
Due after ten years
  
130,516
   
131,712
 
   
279,167
   
280,743
 
Mortgage-backed securities
  
66,577
   
66,104
 
Total held to maturity securities
 
$
345,744
  
$
346,847
 
v3.3.1.900
COMMITMENTS AND CONTINGENCIES
 3 Months Ended
Dec. 31, 2015
COMMITMENTS AND CONTINGENCIES [Abstract]  
COMMITMENTS AND CONTINGENCIES
NOTE 6.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 December 31, 2015 and September 30, 2015, unfunded loan commitments approximated $132.3 million and $158.3 million, respectively, excluding undisbursed portions of loans in process.  These unfunded loan commitments were principally for variable rate loans.  Commitments, which are disbursed subject to certain limitations, extend over various periods of time.  Generally, unused commitments are canceled upon expiration of the commitment term as outlined in each individual contract.

At December 31, 2015, the Company had one commitment to purchase securities available for sale totaling $4.3 million.  The Company had two commitments to purchase securities available for sale totaling $7.9 million and three commitments to purchase securities held to maturity totaling $3.0 million at September 30, 2015.

The exposure to credit loss in the event of nonperformance by other parties to financial instruments for commitments to extend credit is represented by the contractual amount of those instruments.  The same credit policies and collateral requirements are used in making commitments and conditional obligations as are used for on-balance-sheet instruments.
 
Since certain commitments to make loans and to fund lines of credit and loans in process expire without being used, the amount does not necessarily represent future cash commitments.  In addition, commitments used to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract.

Legal Proceedings

The Bank has been named as a defendant, along with other defendants, in four class action litigations commenced in three different federal district courts between October 23, 2015 and November 5, 2015: (1) Fuentes, et al. v. UniRush LLC, et al. (S.D.N.Y. Case No. 1:15-cv-08372); (2) Huff et al. v. UniRush, LLC et al. (E.D. Cal. Case No. 2:15-cv-02253-KJM-CMK); (3) Peterkin v. UniRush LLC, et al. (S.D.N.Y. Case No. 1:15-cv-08573); and (4) Jones v. UniRush, LLC et al. (E.D. Pa. Case No. 5:15-cv-05996-JLS). The complaints in each of these actions seek monetary damages for the alleged inability of customers of the prepaid card product RushCard to access the product for up to two weeks starting on or about October 12, 2015. The plaintiffs allege claims for breach of contract, fraud, misrepresentation, negligence, unjust enrichment, conversion, and breach of fiduciary duty and violations of various state consumer protection statutes prohibiting unfair or deceptive acts or trade/business practices. Due to the recent filing of the complaints, the Company is evaluating the cases and has not yet filed an answer. In addition, the OCC and the CFPB are examining the events surrounding the allegations with respect to the Company and the other defendants, respectively. The OCC has broad supervisory powers with respect to the Bank and could seek to initiate supervisory action if it believes such action is warranted. Because these cases were recently filed and are in their early stages and because of the many questions of fact and law that may arise, the outcome of this legal proceeding is uncertain at this point. Based on information available to us at present, we cannot reasonably estimate a range of potential loss, if any, for these actions because, among other things, our potential liability depends on whether a class is certified and, if so, the composition and size of any such class, as well as on an assessment of the appropriate measure of damages if we were to be found liable. Accordingly, we have not recognized any liability associated with these actions.

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 our 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.
 
Certain corporate clients of an unrelated company named Springbok Services, Inc. (“Springbok”) requested through counsel a mediation as a means of reaching a settlement in lieu of commencing litigation against MetaBank. The results of that mediation have not led to a settlement. These claimants purchased MetaBank prepaid reward cards from Springbok, prior to Springbok’s bankruptcy. As a result of Springbok’s bankruptcy and cessation of business, some of the rewards cards that had been purchased were never activated or funded. Counsel for these companies have indicated that they are prepared to assert claims totaling approximately $1.5 million against MetaBank based on principal/agency or failure to supervise theories. The Company denies liability with respect to these claims. The Company’s estimate of a range of reasonably possible loss is approximately $0 to $0.3 million.

The Bank commenced action against C&B Farms, LLC, Dakota River Farms, LLC, Dakota Grain Farms, LLC, Heather Swenson and Tracy Clement in early July, 2015, in the Third Judicial Circuit Court of the State of South Dakota, seeking to collect upon certain delinquent loans made in connection with the 2014 farming operations of the three identified limited liability companies and the personal guaranties of Swenson and Clement. The three companies and Clement have answered the Complaint and asserted a counterclaim against the Bank and a third-party claim against the Bank’s loan officer. The counterclaim and third-party claim allege that the Bank and its loan officer made certain statements to Clement in early 2015 indicating that the Bank would renew the operating lines and provide financing to the entities for the 2015 growing season. The claimants assert that the Bank abruptly changed course in March, 2015, and ultimately declined to extend new operating lines to the defendants for the 2015 season. The claimants assert that the Bank’s conduct amounted to a fraud and misrepresentation. Additionally, they assert promissory estoppel based on their reliance upon the Bank’s earlier assurances of additional credit from the Bank to their detriment. They assert unspecified damages based on the Bank’s alleged actions, including higher costs of financing from a new lender and, additionally, that they were unable to take advantage of other discount and sale opportunities to their detriment. The Bank intends to vigorously defend the claims.  An estimate of a range of reasonably possible loss cannot be made at this stage of the litigation because discovery is still being conducted.

Other than the matters set forth above, there are no other new material pending legal proceedings or updates to which the Company or its subsidiaries is a party other than ordinary litigation routine to their respective businesses.
v3.3.1.900
STOCK OPTION PLAN
 3 Months Ended
Dec. 31, 2015
STOCK OPTION PLAN [Abstract]  
STOCK OPTION PLAN
NOTE 7.STOCK OPTION PLAN

The Company maintains the 2002 Omnibus Incentive Plan, as amended and restated, which, among other things, provides for the awarding of stock options and nonvested (restricted) shares to certain officers and directors of the Company.  Awards are granted by the Compensation Committee of the Board of Directors based on the performance of the award recipients or other relevant factors.

Compensation expense for share based awards is recorded over the vesting period at the fair value of the award at the time of grant.  The exercise price of options or fair value of nonvested shares granted under the Company’s incentive plans is equal to the fair market value of the underlying stock at the grant date.
 
The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans for the three months ended December 31, 2015:

  
Number
of
Shares
  
Weighted
Average
Exercise
Price
  
Weighted
Average
Remaining
Contractual
Term (Yrs)
  
Aggregate
Intrinsic
Value
 
  
(Dollars in Thousands, Except Share and Per Share Data)
 
         
Options outstanding, September 30, 2015
  
189,088
  
$
25.74
   
3.16
  
$
3,027
 
Granted
  
-
   
-
       
-
 
Exercised
  
(6,111
)
  
28.90
       
99
 
Forfeited or expired
  
-
   
-
       
-
 
Options outstanding, December 31, 2015
  
182,977
  
$
25.64
   
2.93
  
$
3,701
 
                 
Options exercisable, December 31, 2015
  
182,977
  
$
25.64
   
2.93
  
$
3,701
 

  
Number of
Shares
  
Weighted
Average
Fair Value
at Grant
 
(Dollars in Thousands, Except Share and Per Share Data)
 
     
Nonvested shares outstanding, September 30, 2015
  
44,002
  
$
40.80
 
Granted
  
1,000
   
45.00
 
Vested
  
(15,208
)
  
41.54
 
Forfeited or expired
  
(313
)
  
41.77
 
Nonvested shares outstanding, December 31, 2015
  
29,481
  
$
40.56
 

At December 31, 2015, stock based compensation expense not yet recognized in income totaled $377,063, which is expected to be recognized over a weighted average remaining period of 1.83 years.
v3.3.1.900
SEGMENT INFORMATION
 3 Months Ended
Dec. 31, 2015
SEGMENT INFORMATION [Abstract]  
SEGMENT INFORMATION
NOTE 8.SEGMENT INFORMATION

An operating segment is generally defined as a component of a business for which discrete financial information is available and whose results are reviewed by the chief operating decision-maker. Operating segments are aggregated into reportable segments if certain criteria are met.

In the Annual Report on Form 10-K for the year ended September 30, 2015, the Company reported its results of operations through three business segments: Meta Payment Systems, Retail Bank, and Other.  Effective October 1, 2015, segments are now aligned with the new management operating structure implemented by the Company for fiscal year 2016.  The Company accordingly has changed its basis of presentation for segments, and following such change, reports its results of operations through the following three business segments: Payments, Banking, and Corporate Services/Other.  Certain shared services, including the investment portfolio, which was included in the former Retail Bank segment, is now included in Corporate Services/Other.  AFS/IBEX and Refund Advantage were previously and are currently included in the Banking and Payments segments, respectively.  Prior periods have been reclassified to conform to the current period presentation.
 
The following tables present segment data for the Company for the three months ended December 31, 2015 and 2014, respectively.

  
Payments
  
Banking
  
Corporate
Services/Other
  
Total
 
         
Three Months Ended December 31, 2015
        
Interest income
 
$
1,964
  
$
8,851
  
$
7,460
  
$
18,275
 
Interest expense
  
40
   
253
   
427
   
720
 
Net interest income (expense)
  
1,924
   
8,598
   
7,033
   
17,555
 
Provision (recovery) for loan losses
  
80
   
706
   
-
   
786
 
Non-interest income
  
15,352
   
1,056
   
426
   
16,834
 
Non-interest expense
  
16,017
   
5,428
   
8,563
   
30,008
 
Income (loss) before tax
  
1,179
   
3,520
   
(1,104
)
  
3,595
 
                 
Total assets
  
51,359
   
735,222
   
2,173,653
   
2,960,234
 
Total deposits
  
2,341,783
   
227,260
   
-
   
2,569,043
 

  
Payments
  
Banking
  
Corporate
Services/Other
  
Total
 
         
Three Months Ended December 31, 2014
        
Interest income
 
$
1,567
  
$
6,941
  
$
5,724
  
$
14,232
 
Interest expense
  
45
   
279
   
337
   
661
 
Net interest income (expense)
  
1,522
   
6,662
   
5,387
   
13,571
 
Provision (recovery) for loan losses
  
-
   
48
   
-
   
48
 
Non-interest income
  
13,052
   
579
   
(957
)
  
12,674
 
Non-interest expense
  
11,673
   
5,263
   
5,477
   
22,413
 
Income (loss) before tax
  
2,901
   
1,930
   
(1,047
)
  
3,784
 
                 
Total assets
  
41,096
   
599,027
   
1,467,940
   
2,108,063
 
Total deposits
  
1,554,114
   
234,765
   
-
   
1,788,879
 
v3.3.1.900
NEW ACCOUNTING PRONOUNCEMENTS
 3 Months Ended
Dec. 31, 2015
NEW ACCOUNTING PRONOUNCEMENTS [Abstract]  
NEW ACCOUNTING PRONOUNCEMENTS
NOTE 9.NEW ACCOUNTING PRONOUNCEMENTS

Accounting Standards Update (“ASU”) No 2015-16 – Business Combinations (Topic 805):  Simplifying the Accounting for Measurement-Period Adjustments

This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined.  Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date.  This update is in effect for annual and interim periods beginning after December 15, 2015, and the Company does not expect a material impact on the Company’s consolidated financial statements.
 
ASU No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure

This ASU provides guidance on when a loan should be derecognized and collateral assets recognized during an in-substance repossession or foreclosure. The objective of this ASU is to eliminate diversity in practice related to the topic. The ASU states creditors are considered to have physical possession of residential real estate property when either the creditor obtains title for the property or the borrower transfers all interest in the property through a deed or other legal agreement. When physical possession occurs, the loan should be derecognized and collateral assets recognized. This update was effective for annual and interim periods beginning after December 15, 2014, and did not have a material impact on the Company’s consolidated financial statements.
 
ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606)

This ASU provides guidance on when to recognize revenue from contracts with customers.  The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements.  The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation.  This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements.

ASU No. 2014-14, Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure

This ASU provides guidance on how to account for certain foreclosed government-guaranteed mortgage loans.  The creditor should recognize a separate other receivable in the amount the creditor expects to recover from the guarantor.  This update was effective for annual and interim periods beginning after December 15, 2014, and did not have a material impact on the Company’s consolidated financial statements.

ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

This ASU eliminates the concept of extraordinary items from U.S. GAAP.  The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence.  This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements.

ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis

This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities.  This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements.
v3.3.1.900
FAIR VALUE MEASUREMENTS
 3 Months Ended
Dec. 31, 2015
FAIR VALUE MEASUREMENTS [Abstract]  
FAIR VALUE MEASUREMENTS
NOTE 10. 
FAIR VALUE MEASUREMENTS

Accounting Standards Codification (“ASC”) 820, Fair Value Measurements defines fair value, establishes a framework for measuring the fair value of assets and liabilities using a hierarchy system and requires disclosures about fair value measurement.  It clarifies that fair value is the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants in the market in which the reporting entity transacts.
 
The fair value hierarchy is as follows:

Level 1 Inputs – Valuation is based upon quoted prices for identical instruments traded in active markets that the Company has the ability to access at measurement date.

Level 2 Inputs – Valuation is based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model-based valuation techniques for which significant assumptions are observable in the market.

Level 3 Inputs – Valuation is generated from model-based techniques that use significant assumptions not observable in the market and are used only to the extent that observable inputs are not available.  These unobservable assumptions reflect the Company’s own estimates of assumptions that market participants would use in pricing the asset or liability.  Valuation techniques include use of option pricing models, discounted cash flow models and similar techniques.

Securities Available for Sale and Held to Maturity.  Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair value measurement is based upon quoted prices, if available.  If quoted prices are not available, fair values are measured using an independent pricing service.  For both Level 1 and Level 2 securities, management uses various methods and techniques to corroborate prices obtained from the pricing service, including but not limited to reference to dealer or other market quotes, and by reviewing valuations of comparable instruments.  The Company’s Level 1 securities include equity securities and mutual funds.  Level 2 securities include U.S. Government agency and instrumentality securities, U.S. Government agency and instrumentality mortgage-backed securities, municipal bonds, corporate debt securities and trust preferred securities.  The Company had no Level 3 securities at December 31, 2015 or September 30, 2015. 

The fair values of securities are determined by obtaining quoted prices on nationally recognized securities exchanges (Level 1 inputs), or valuation based upon quoted prices for similar instruments in active markets, quoted prices for identical or similar instruments in markets that are not active and model based valuation techniques for which significant assumptions are observable in the market (Level 2 inputs).  The Company considers these valuations supplied by a third party provider which utilizes several sources for valuing fixed-income securities.  These sources include Interactive Data Corporation, Reuters, Standard and Poor’s, Bloomberg Financial Markets, Street Software Technology, and the third party provider’s own matrix and desk pricing.  The Company, no less than annually, reviews the third party’s methods and source’s methodology for reasonableness and to ensure an understanding of inputs utilized in determining fair value.  Sources utilized by the third party provider include but are not limited to pricing models that vary based by asset class and include available trade, bid, and other market information.  This methodology includes but is not limited to broker quotes, proprietary models, descriptive terms and conditions databases, as well as extensive quality control programs. Monthly, the Company receives and compares prices provided by multiple securities dealers and pricing providers to validate the accuracy and reasonableness of prices received from the third party provider. On a monthly basis, the Investment Committee reviews mark-to-market changes in the securities portfolio for reasonableness.
 
The following table summarizes the fair values of securities available for sale and held to maturity at December 31, 2015 and September 30, 2015.  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 December 31, 2015
 
  
Available For Sale
  
Held to Maturity
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
  
Total
  
Level 1
  
Level 2
  
Level 3
 
Debt securities
                
Trust preferred securities
 
$
12,385
  
$
-
  
$
12,385
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Small business administration securities
  
84,671
   
-
   
84,671
   
-
   
-
   
-
   
-
   
-
 
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
   
20,699
   
-
   
20,699
   
-
 
Non-bank qualified obligations of states and political subdivisions
  
663,500
   
-
   
663,500
   
-
   
323,159
   
-
   
323,159
   
-
 
Mortgage-backed securities
  
578,357
   
-
   
578,357
   
-
   
69,224
   
-
   
69,224
   
-
 
Total debt securities
  
1,338,913
   
-
   
1,338,913
   
-
   
413,082
   
-
   
413,082
   
-
 
Common equities and mutual funds
  
1,028
   
1,028
   
-
   
-
   
-
   
-
   
-
   
-
 
Total securities
 
$
1,339,941
  
$
1,028
  
$
1,338,913
  
$
-
  
$
413,082
  
$
-
  
$
413,082
  
$
-
 

  
Fair Value At September 30, 2015
 
  
Available For Sale
  
Held to Maturity
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
  
Total
  
Level 1
  
Level 2
  
Level 3
 
Debt securities
                
Trust preferred and corporate securities
 
$
13,944
  
$
-
  
$
13,944
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Small business administration securities
  
56,056
   
-
   
56,056
   
-
   
-
   
-
   
-
   
-
 
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
   
19,413
   
-
   
19,413
   
-
 
Non-bank qualified obligations of states and political subdivisions
  
608,590
   
-
   
608,590
   
-
   
261,330
   
-
   
261,330
   
-
 
Mortgage-backed securities
  
576,583
   
-
   
576,583
   
-
   
66,104
   
-
   
66,104
   
-
 
Total debt securities
  
1,255,173
   
-
   
1,255,173
   
-
   
346,847
   
-
   
346,847
   
-
 
Common equities and mutual funds
  
914
   
914
   
-
   
-
   
-
   
-
   
-
   
-
 
Total securities
 
$
1,256,087
  
$
914
  
$
1,255,173
  
$
-
  
$
346,847
  
$
-
  
$
346,847
  
$
-
 

Loans.  The Company does not record loans at fair value on a recurring basis.  However, if a loan is considered impaired, an allowance for loan losses is established.  Once a loan is identified as individually impaired, management measures impairment in accordance with ASC 310, Receivables.

The following table summarizes the assets of the Company that are measured at fair value in the consolidated statements of financial condition on a non-recurring basis as of December 31, 2015 and September 30, 2015.

  
Fair Value at December 31, 2015
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
 
Impaired Loans, net
        
Commercial and multi-family real estate loans
 
$
663
  
$
-
  
$
-
  
$
663
 
Agricultural operating loans
  
1,218
   
-
   
-
   
1,218
 
Total
 
$
1,881
  
$
-
  
$
-
  
$
1,881
 

  
Fair Value at September 30, 2015
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
 
Impaired Loans, net
        
Commercial and multi-family real estate loans
 
$
663
  
$
-
  
$
-
  
$
663
 
Agricultural operating loans
  
1,880
   
-
   
-
   
1,880
 
Total
 
$
2,543
  
$
-
  
$
-
  
$
2,543
 
 
  
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
 
Fair Value at
December 31, 2015
 
Valuation
Technique
Unobservable Input
        
Impaired Loans, net
 
$
1,881
 
Market approach
Appraised values (1)
                                         
 (1) The Company generally relies on external appraisers to develop this information.  Management reduced
the appraised value by estimated selling costs in a range of 4% to 10%.

  
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
 
Fair Value at
September 30, 2015
 
Valuation
Technique
Unobservable Input
        
Impaired Loans, net
 
$
2,543
 
Market approach
Appraised values (1)

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

The following table discloses the Company’s estimated fair value amounts of its financial instruments.  It is management’s belief that the fair values presented below are reasonable based on the valuation techniques and data available to the Company as of December 31, 2015 and September 30, 2015, 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 December 31, 2015 and September 30, 2015.

  
December 31, 2015
 
  
Carrying
Amount
  
Estimated
Fair Value
  
Level 1
  
Level 2
  
Level 3
 
  
(Dollars in Thousands)
 
Financial assets
          
Cash and cash equivalents
 
$
293,147
  
$
293,147
  
$
293,147
  
$
-
  
$
-
 
                     
Securities available for sale
  
1,339,941
   
1,339,941
   
1,028
   
1,338,913
   
-
 
Securities held to maturity
  
411,335
   
413,082
   
-
   
413,082
   
-
 
Total securities
  
1,751,276
   
1,753,023
   
1,028
   
1,751,995
   
-
 
                     
Loans receivable:
                    
One to four family residential mortgage loans
  
134,850
   
135,612
   
-
   
-
   
135,612
 
Commercial and multi-family real estate loans
  
322,125
   
328,503
   
-
   
-
   
328,503
 
Agricultural real estate loans
  
64,181
   
67,673
   
-
   
-
   
67,673
 
Consumer loans
  
34,868
   
34,590
   
-
   
-
   
34,590
 
Commercial operating loans
  
37,505
   
27,985
   
-
   
-
   
27,985
 
Agricultural operating loans
  
40,412
   
31,338
   
-
   
-
   
31,338
 
Premium finance loans
  
110,640
   
113,101
   
-
   
-
   
113,101
 
Total loans receivable
  
744,581
   
738,802
   
-
   
-
   
738,802
 
                     
Federal Home Loan Bank stock
  
4,810
   
4,810
   
-
   
4,810
   
-
 
Accrued interest receivable
  
16,306
   
16,306
   
16,306
   
-
   
-
 
                     
Financial liabilities
                    
Noninterest bearing demand deposits
  
2,360,403
   
2,360,403
   
2,360,403
   
-
   
-
 
Interest bearing demand deposits, savings, and money markets
  
134,661
   
134,661
   
134,661
   
-
   
-
 
Certificates of deposit
  
73,979
   
73,408
   
-
   
73,408
   
-
 
Total deposits
  
2,569,043
   
2,568,472
   
2,495,064
   
73,408
   
-
 
                     
Advances from Federal Home Loan Bank
  
57,000
   
58,228
   
-
   
58,228
   
-
 
Federal funds purchased
  
-
   
-
       
-
     
Securities sold under agreements to repurchase
  
2,007
   
2,007
   
-
   
2,007
   
-
 
Subordinated debentures
  
10,310
   
10,414
   
-
   
10,414
   
-
 
Accrued interest payable
  
229
   
229
   
229
   
-
   
-
 
 
  
September 30, 2015
 
  
Carrying
Amount
  
Estimated
Fair Value
  
Level 1
  
Level 2
  
Level 3
 
  
(Dollars in Thousands)
 
Financial assets
          
Cash and cash equivalents
 
$
27,658
  
$
27,658
  
$
27,658
  
$
-
  
$
-
 
                     
Securities available for sale
  
1,256,087
   
1,256,087
   
914
   
1,255,173
   
-
 
Securities held to maturity
  
345,744
   
346,847
   
-
   
346,847
   
-
 
Total securities
  
1,601,831
   
1,602,934
   
914
   
1,602,020
   
-
 
                     
Loans receivable:
                    
One to four family residential mortgage loans
  
125,021
   
121,385
   
-
   
-
   
121,385
 
Commercial and multi-family real estate loans
  
310,199
   
314,372
   
-
   
-
   
314,372
 
Agricultural real estate loans
  
64,316
   
66,682
   
-
   
-
   
66,682
 
Consumer loans
  
33,527
   
33,504
   
-
   
-
   
33,504
 
Commercial operating loans
  
29,893
   
23,245
   
-
   
-
   
23,245
 
Agricultural operating loans
  
43,626
   
40,003
   
-
   
-
   
40,003
 
Premium finance loans
  
106,505
   
108,583
   
-
   
-
   
108,583
 
Total loans receivable
  
713,087
   
707,774
   
-
   
-
   
707,774
 
                     
Federal Home Loan Bank stock
  
24,410
   
24,410
   
-
   
24,410
   
-
 
Accrued interest receivable
  
13,352
   
13,352
   
13,352
   
-
   
-
 
                     
Financial liabilities
                    
Noninterest bearing demand deposits
  
1,449,101
   
1,369,672
   
1,369,672
   
-
   
-
 
Interest bearing demand deposits, savings, and money markets
  
117,262
   
115,204
   
115,204
   
-
   
-
 
Certificates of deposit
  
91,171
   
91,304
   
-
   
91,304
   
-
 
Total deposits
  
1,657,534
   
1,576,180
   
1,484,876
   
91,304
   
-
 
                     
Advances from Federal Home Loan Bank
  
7,000
   
8,630
   
-
   
8,630
   
-
 
Federal funds purchased
  
540,000
   
540,000
   
-
   
540,000
   
-
 
Securities sold under agreements to repurchase
  
4,007
   
4,007
   
-
   
4,007
   
-
 
Subordinated debentures
  
10,310
   
10,416
   
-
   
10,416
   
-
 
Accrued interest payable
  
272
   
272
   
272
   
-
   
-
 

The following sets forth the methods and assumptions used in determining the fair value estimates for the Company’s financial instruments at December 31, 2015 and September 30, 2015.

CASH AND CASH EQUIVALENTS
The carrying amount of cash and short-term investments is assumed to approximate the fair value.

SECURITIES AVAILABLE FOR SALE AND HELD TO MATURITY
Securities available for sale are recorded at fair value on a recurring basis and securities held to maturity are carried at amortized cost.  Fair values for investment securities are based on obtaining quoted prices on nationally recognized securities exchanges, or matrix pricing, which is a mathematical technique widely used in the industry to value debt securities without relying exclusively on quoted prices for the specific securities, but rather by relying on the securities’ relationship to other benchmark quoted securities.

LOANS RECEIVABLE, NET
The fair value of loans is estimated using a historical or replacement cost basis concept (i.e. an entrance price concept).  The fair value of loans was estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers and for similar remaining maturities.  When using the discounting method to determine fair value, loans were grouped by homogeneous loans with similar terms and conditions and discounted at a target rate at which similar loans would be made to borrowers at December 31, 2015 or September 30, 2015.  In addition, when computing the estimated fair value for all loans, allowances for loan losses have been subtracted from the calculated fair value as a result of the discounted cash flow which approximates the fair value adjustment for the credit quality component.
 
FEDERAL HOME LOAN BANK (“FHLB”) STOCK
The fair value of such stock is assumed to approximate book value since the Company is only able to redeem this stock at par value.

ACCRUED INTEREST RECEIVABLE
The carrying amount of accrued interest receivable is assumed to approximate the fair value.

DEPOSITS
The carrying values of non-interest bearing checking deposits, interest bearing checking deposits, savings, and money markets is assumed to approximate fair value, since such deposits are immediately withdrawable without penalty.  The fair value of time certificates of deposit was estimated by discounting expected future cash flows by the current rates offered on certificates of deposit with similar remaining maturities.

In accordance with ASC 825, Financial Instruments, 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 AND SUBORDINATED DEBENTURES
The fair value of these instruments was estimated by discounting the expected future cash flows using derived interest rates approximating market over the contractual maturity of such borrowings.

ACCRUED INTEREST PAYABLE
The carrying amount of accrued interest payable is assumed to approximate the fair value.

LIMITATIONS
It must be noted that fair value estimates are made at a specific point in time, based on relevant market information about the financial instrument.  Additionally, fair value estimates are based on existing on- and off-balance sheet financial instruments without attempting to estimate the value of anticipated future business, customer relationships and the value of assets and liabilities that are not considered financial instruments.  These estimates do not reflect any premium or discount that could result from offering the Company’s entire holdings of a particular financial instrument for sale at one time.  Furthermore, since no market exists for certain of the Company’s financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors.  These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with a high level of precision.  Changes in assumptions as well as tax considerations could significantly affect the estimates.  Accordingly, based on the limitations described above, the aggregate fair value estimates are not intended to represent the underlying value of the Company, on either a going concern or a liquidation basis.
v3.3.1.900
GOODWILL AND INTANGIBLE ASSETS
 3 Months Ended
Dec. 31, 2015
GOODWILL AND INTANGIBLE ASSETS [Abstract]  
GOODWILL AND INTANGIBLE ASSETS
NOTE 11. 
GOODWILL AND INTANGIBLE ASSETS

The Company recorded a total of $36.9 million of goodwill during the fiscal year ended September 30, 2015, due to two separate business combinations – $11.6 million of goodwill in connection with the purchase of substantially all of the commercial loan portfolio and related assets of AFS/IBEX on December 2, 2014, and $25.4 million in goodwill in connection with the purchase of substantially all of the assets and liabilities of Fort Knox Financial Services Corporation and its subsidiary (collectively referred to as “Refund Advantage”) on September 8, 2015.  The goodwill associated with these transactions is deductible for tax purposes.

As part of the each business combination, the Company also recognized the following amortizable intangible assets:

AFS/IBEX
Intangible
 
Amount
  
Book Amortization
Period (Years)
 
Method
         
Trademark
 
$
540
   
15
 
Straight Line
Non-Compete
 
$
260
   
3
 
Straight Line
Customer Relationships
 
$
7,240
   
30
 
Accelerated
Other
 
$
173
  
Varied
 
Straight Line

Refund Advantage
Intangible
 
Amount
  
Book Amortization
Period (Years)
 
Method
         
Trademark
 
$
4,950
   
15
 
Accelerated
Non-Compete
 
$
40
   
3
 
Straight Line
Customer Relationships
 
$
18,800
  
12 to 20
 
Accelerated
Other
 
$
329
  
Varied
 
Straight Line

The changes in the carrying amount of the Company’s goodwill and intangible assets for the three months ended December 31, 2015 and 2014 are as follows:

  
December 31,
 
  
2015
  
2014
 
  
(Dollars in Thousands)
 
Goodwill
    
Beginning Balance
 
$
36,928
  
$
-
 
Acquisitions during the period
  
-
   
11,578
 
Write-offs during the period
  
-
   
-
 
Ending Balance
 
$
36,928
  
$
11,578
 
 
  
Trademark
  
Non-Compete
  
Customer
Relationships
  
All Others
  
Total
 
Intangibles
  
Balance as of September 30, 2015
 
$
5,439
  
$
227
  
$
24,811
  
$
3,100
  
$
33,577
 
Acquisitions during the period
  
-
   
-
   
-
   
54
   
54
 
Amortization during the period
  
(72
)
  
(25
)
  
(1,064
)
  
(52
)
  
(1,213
)
Write-offs during the period
  
-
   
-
   
-
   
-
   
-
 
Balance as of December 31, 2015
 
$
5,367
  
$
202
  
$
23,747
  
$
3,102
  
$
32,418
 
                                  
The Company tests intangible assets for impairment at least annually or more often if conditions indicate a possible impairment.  There was no impairment to intangible assets during the three months ended December 31, 2015 and 2014.  The annual goodwill impairment test will be conducted at September 30, 2016.
v3.3.1.900
INCOME TAXES
 3 Months Ended
Dec. 31, 2015
INCOME TAXES [Abstract]  
INCOME TAXES
NOTE 12. 
INCOME TAXES

The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis.  Total income tax expense differs from expected tax for the three months ended December 31, 2015 and 2014 as follows:

  
Income Tax Expense (Benefit)
For The Three Months Ended
 
  
December 31, 2015
  
December 31, 2014
 
  
(Dollars in Thousands)
 
     
Income tax expense at federal tax rate
 
$
1,258
  
$
1,324
 
Increase (decrease) resulting from:
        
State income taxes net of federal benefit
  
167
   
119
 
Nontaxable buildup in cash surrender value
  
(131
)
  
(100
)
Incentive stock option expense
  
(18
)
  
-
 
Tax exempt income
  
(1,790
)
  
(1,068
)
Nondeductible expenses
  
39
   
12
 
Other, net
  
12
   
(98
)
Total income tax expense (benefit)
 
$
(463
)
 
$
189
 

The Company’s effective tax for the three months ended December 31, 2015 decreased as compared to the three months ended December 31, 2014 primarily due to the level of tax exempt income as compared to overall pre-tax income.
v3.3.1.900
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS
 3 Months Ended
Dec. 31, 2015
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS [Abstract]  
REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS
NOTE 13.REGULATORY MATTERS AND SETTLEMENT OF OTS ENFORCEMENT ACTIONS

On July 21, 2011, pursuant to the Dodd Frank Act, the OTS was integrated into the OCC and the functions of the OTS related to thrift holding companies were transferred to the Federal Reserve.  The OCC, as the Bank’s primary federal regulator, is responsible for the ongoing examination, supervision and regulation of the Bank.  The Dodd Frank Act maintains the existence of the federal savings association charter and the HOLA, the primary statute governing federal savings banks.  The Federal Reserve is responsible for the ongoing examination, supervision and regulation of the Company.  A consent order that had been in effect was terminated on May 21, 2015 by the Federal Reserve.  Prior to passage of the Dodd-Frank Act, the OTS had issued supervisory directives to the Bank, consent orders to the Bank and the Company, and had taken other regulatory action to require the Bank to reimburse certain consumers in connection with a credit program that was discontinued.  All supervisory directives have been terminated, and on August 7, 2014, the OCC terminated the Bank’s Consent Order.
 
On January 5, 2015, the Federal Deposit Insurance Corporation (“FDIC”) published industry guidance in the form of Frequently Asked Questions (“FAQs”) with respect to the categorization of deposit liabilities as "brokered" deposits. On November 13, 2015, the FDIC issued for comment updated and annotated FAQs.

Due to the Bank’s status as a "well-capitalized" institution under the FDIC's prompt corrective action regulations, and further with respect to the Bank’s financial condition in general, the Company does not at this time anticipate that the Guidance will have a material adverse impact on the Company’s business operations or its ability to further grow deposits.  However, should the Bank ever fail to be well-capitalized in the future, as a result of failing to meet the well-capitalized requirements, or the imposition of an individual minimum capital requirement or similar formal requirements, then, notwithstanding that the Bank has capital in excess of the well-capitalized minimum requirements, the Bank would be prohibited, absent waiver from the FDIC, from utilizing brokered deposits (i.e., may not accept, renew or rollover brokered deposits) which could produce serious adverse effects on the Company’s liquidity, and financial condition and results of operations.  Recently, the FDIC proposed a rule which would change the method of calculating the assessment fees for FDIC – insured institutions. The Bank is currently assessing the impact of the proposed assessment rule.
v3.3.1.900
SUBSEQUENT EVENTS
 3 Months Ended
Dec. 31, 2015
SUBSEQUENT EVENTS [Abstract]  
SUBSEQUENT EVENTS
NOTE 14.
SUBSEQUENT EVENTS

Management has evaluated subsequent events.  There were no material subsequent events that would require recognition or disclosure in our consolidated financial statements as of and for the quarter ended December 31, 2015.
v3.3.1.900
NEW ACCOUNTING PRONOUNCEMENTS (Policies)
 3 Months Ended
Dec. 31, 2015
NEW ACCOUNTING PRONOUNCEMENTS [Abstract]  
New Accounting Pronouncements
Accounting Standards Update (“ASU”) No 2015-16 – Business Combinations (Topic 805):  Simplifying the Accounting for Measurement-Period Adjustments

This ASU provides guidance regarding recognizing adjustments to provisional goodwill identified during the measurement period in the reporting period in which the adjustment is determined.  Income statement effects, if any, will also need to be recorded in the period in which the adjustment is determined, as if the accounting had been completed at the acquisition date.  This update is in effect for annual and interim periods beginning after December 15, 2015, and the Company does not expect a material impact on the Company’s consolidated financial statements.
 
ASU No. 2014-04, Receivables – Troubled Debt Restructurings by Creditors (Subtopic 310-40): Reclassification of Residential Real Estate Collateralized Consumer Mortgage Loans Upon Foreclosure

This ASU provides guidance on when a loan should be derecognized and collateral assets recognized during an in-substance repossession or foreclosure. The objective of this ASU is to eliminate diversity in practice related to the topic. The ASU states creditors are considered to have physical possession of residential real estate property when either the creditor obtains title for the property or the borrower transfers all interest in the property through a deed or other legal agreement. When physical possession occurs, the loan should be derecognized and collateral assets recognized. This update was effective for annual and interim periods beginning after December 15, 2014, and did not have a material impact on the Company’s consolidated financial statements.
 
ASU No. 2014-09, Revenue Recognition – Revenue from Contracts with Customers (Topic 606)

This ASU provides guidance on when to recognize revenue from contracts with customers.  The objective of this ASU is to eliminate diversity in practice related to this topic and to develop guidance that would streamline and enhance revenue recognition requirements.  The ASU defines five steps to recognize revenue, including identify the contract with a customer, identify the performance obligations in the contract, determine a transaction price, allocate the transaction price to the performance obligations and then recognize the revenue when or as the entity satisfies a performance obligation.  This update is effective for annual reporting periods beginning after December 15, 2017, including interim periods within that reporting period, and the Company is currently assessing the potential impact to the consolidated financial statements.

ASU No. 2014-14, Troubled Debt Restructuring by Creditors (Subtopic 310-40): Classification of Certain Government-Guaranteed Mortgage Loans upon Foreclosure

This ASU provides guidance on how to account for certain foreclosed government-guaranteed mortgage loans.  The creditor should recognize a separate other receivable in the amount the creditor expects to recover from the guarantor.  This update was effective for annual and interim periods beginning after December 15, 2014, and did not have a material impact on the Company’s consolidated financial statements.

ASU No. 2015-01, Income Statement, Extraordinary and Unusual Items (Subtopic 225-20): Simplifying Income Statement Presentation by Eliminating the Concept of Extraordinary Items

This ASU eliminates the concept of extraordinary items from U.S. GAAP.  The ASU does not affect disclosure guidance for events or transactions that are unusual in nature or infrequent in their occurrence.  This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements.

ASU No. 2015-02, Consolidation (Topic 810): Amendments to the Consolidation Analysis

This ASU changes the way reporting enterprises evaluate whether (a) they should consolidate limited partnerships and similar entities, (b) fees paid to a decision maker or service provider are variable interests in a variable interest entity (“VIE”), and (c) variable interests in a VIE held by related parties of the reporting enterprise require the reporting enterprise to consolidate the VIE. It also eliminates the VIE consolidation model based on majority exposure to variability that applied to certain investment companies and similar entities.  This update is effective for annual and interim periods beginning after December 15, 2015, and is not expected to have a material impact on the Company’s consolidated financial statements.
v3.3.1.900
CREDIT DISCLOSURES (Tables)
 3 Months Ended
Dec. 31, 2015
CREDIT DISCLOSURES [Abstract]  
Schedule of Loan Receivables
Loans receivable at December 31, 2015 and September 30, 2015 are as follows:
 
  
December 31, 2015
  
September 30, 2015
 
  
(Dollars in Thousands)
 
     
1-4 Family Real Estate
 
$
134,850
  
$
125,021
 
Commercial and Multi-Family Real Estate
  
322,125
   
310,199
 
Agricultural Real Estate
  
64,181
   
64,316
 
Consumer
  
34,868
   
33,527
 
Commercial Operating
  
37,505
   
29,893
 
Agricultural Operating
  
40,412
   
43,626
 
Premium Finance
  
110,640
   
106,505
 
Total Loans Receivable
  
744,581
   
713,087
 
         
Less:
        
Allowance for Loan Losses
  
(6,666
)
  
(6,255
)
Net Deferred Loan Origination Fees
  
(787
)
  
(577
)
Total Loans Receivable, Net
 
$
737,128
  
$
706,255
 
Activity in Allowance for Loan Losses
Activity in the allowance for loan losses and balances of loans receivable by portfolio segment for the three month periods ended December 31, 2015 and 2014 is as follows:

  
1-4 Family
Real Estate
  
Commercial and
Multi-Family
Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Unallocated
  
Total
 
  
(Dollars in Thousands)
 
Three Months Ended December 31, 2015
 
                   
Allowance for loan losses:
                  
Beginning balance
 
$
278
  
$
1,187
  
$
163
  
$
20
  
$
28
  
$
3,537
  
$
293
  
$
749
  
$
6,255
 
Provision (recovery) for loan losses
  
7
   
7
   
8
   
(0
)
  
79
   
319
   
506
   
(140
)
  
786
 
Charge offs
  
-
   
-
   
-
   
-
   
-
   
-
   
(390
)
  
-
   
(390
)
Recoveries
  
-
   
-
   
-
   
-
   
-
   
-
   
15
   
-
   
15
 
Ending balance
 
$
285
  
$
1,194
  
$
171
  
$
20
  
$
107
  
$
3,856
  
$
424
  
$
609
  
$
6,666
 
                                     
Ending balance: individually evaluated for impairment
  
-
   
235
   
-
   
-
   
-
   
3,614
   
-
   
-
   
3,849
 
Ending balance: collectively evaluated for impairment
  
285
   
959
   
171
   
20
   
107
   
242
   
424
   
609
   
2,817
 
Total
 
$
285
  
$
1,194
  
$
171
  
$
20
  
$
107
  
$
3,856
  
$
424
  
$
609
  
$
6,666
 
                                     
Loans:
                                    
Ending balance: individually evaluated for impairment
  
117
   
1,341
   
-
   
0
   
8
   
4,832
   
-
   
-
   
6,298
 
Ending balance: collectively evaluated for impairment
  
134,733
   
320,784
   
64,181
   
34,868
   
37,497
   
35,580
   
110,640
   
-
   
738,283
 
Total
 
$
134,850
  
$
322,125
  
$
64,181
  
$
34,868
  
$
37,505
  
$
40,412
  
$
110,640
  
$
-
  
$
744,581
 
 
  
1-4 Family
Real Estate
  
Commercial and
Multi-Family
Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Unallocated
  
Total
 
  
(Dollars in Thousands)
 
Three Months Ended December 31, 2014
 
                   
Allowance for loan losses:
                  
Beginning balance
 
$
552
  
$
1,575
  
$
263
  
$
78
  
$
93
  
$
719
  
$
-
  
$
2,117
  
$
5,397
 
Provision (recovery) for loan losses
  
(40
)
  
(169
)
  
3
   
-
   
(9
)
  
(89
)
  
48
   
304
   
48
 
Charge offs
  
-
   
(214
)
  
-
   
-
   
-
   
-
   
(17
)
  
-
   
(231
)
Recoveries
  
-
   
6
   
-
   
-
   
1
   
-
   
4
   
-
   
11
 
Ending balance
 
$
512
  
$
1,198
  
$
266
  
$
78
  
$
85
  
$
630
  
$
35
  
$
2,421
  
$
5,225
 
                                     
Ending balance: individually evaluated for impairment
  
-
   
310
   
-
   
-
   
-
   
296
   
-
   
-
   
606
 
Ending balance: collectively evaluated for impairment
  
512
   
888
   
266
   
78
   
85
   
334
   
35
   
2,421
   
4,619
 
Total
 
$
512
  
$
1,198
  
$
266
  
$
78
  
$
85
  
$
630
  
$
35
  
$
2,421
  
$
5,225
 
                                     
Loans:
                                    
Ending balance: individually evaluated for impairment
  
348
   
1,427
   
-
   
-
   
20
   
296
   
-
   
-
   
2,091
 
Ending balance: collectively evaluated for impairment
  
111,425
   
249,595
   
58,193
   
33,796
   
28,037
   
39,029
   
74,156
   
-
   
594,231
 
Total
 
$
111,773
  
$
251,022
  
$
58,193
  
$
33,796
  
$
28,057
  
$
39,325
  
$
74,156
  
$
-
  
$
596,322
 
Asset Classification of Loans Excluding Loans Held for Sale
The asset classification of loans at December 31, 2015 and September 30, 2015 are as follows:

December 31, 2015
 
1-4 Family Real Estate
  
Commercial and Multi-Family Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Total
 
  
(Dollars in Thousands)
 
                 
Pass
 
$
133,824
  
$
319,608
  
$
33,275
  
$
34,868
  
$
36,598
  
$
27,978
  
$
110,640
  
$
696,791
 
Watch
  
994
   
1,619
   
28,357
   
0
   
797
   
986
   
-
   
32,753
 
Special Mention
  
9
   
-
   
877
   
-
   
-
   
4,114
   
-
   
5,000
 
Substandard
  
23
   
898
   
1,672
   
-
   
110
   
4,877
   
-
   
7,580
 
Doubtful
  
-
   
-
   
-
   
-
   
-
   
2,457
   
-
   
2,457
 
  
$
134,850
  
$
322,125
  
$
64,181
  
$
34,868
  
$
37,505
  
$
40,412
  
$
110,640
  
$
744,581
 

September 30, 2015
 
1-4 Family Real Estate
  
Commercial and Multi-Family Real Estate
  
Agricultural Real Estate
  
Consumer
  
Commercial Operating
  
Agricultural Operating
  
Premium Finance
  
Total
 
  
(Dollars in Thousands)
 
                 
Pass
 
$
124,775
  
$
307,876
  
$
35,106
  
$
33,527
  
$
29,052
  
$
29,336
  
$
106,505
  
$
666,177
 
Watch
  
212
   
1,419
   
26,703
   
-
   
712
   
1,079
   
-
   
30,125
 
Special Mention
  
10
   
-
   
877
   
-
   
-
   
4,014
   
-
   
4,901
 
Substandard
  
24
   
904
   
1,630
   
-
   
129
   
9,197
   
-
   
11,884
 
Doubtful
  
-
   
-
   
-
   
-
   
-
   
-
   
-
   
-
 
  
$
125,021
  
$
310,199
  
$
64,316
  
$
33,527
  
$
29,893
  
$
43,626
  
$
106,505
  
$
713,087
 
Summary of Past Due Loans
Past due loans at December 31, 2015 and September 30, 2015 are as follows:
 
December 31, 2015
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
Greater Than
90 Days
  
Total Past
Due
  
Current
  
Non-Accrual
Loans
  
Total Loans
Receivable
 
  
(Dollars in Thousands)
 
               
1-4 Family Real Estate
 
$
-
  
$
-
  
$
-
  
$
-
  
$
134,827
  
$
23
  
$
134,850
 
Commercial and Multi-Family Real Estate
  
-
   
-
   
-
   
-
   
321,228
   
897
   
322,125
 
Agricultural Real Estate
  
3,548
   
1,060
   
-
   
4,608
   
59,573
   
-
   
64,181
 
Consumer
  
-
   
-
   
26
   
26
   
34,842
   
-
   
34,868
 
Commercial Operating
  
-
   
-
   
-
   
-
   
37,505
   
-
   
37,505
 
Agricultural Operating
  
-
   
-
   
-
   
-
   
35,580
   
4,832
   
40,412
 
Premium Finance
  
778
   
440
   
856
   
2,074
   
108,566
   
-
   
110,640
 
Total
 
$
4,326
  
$
1,500
  
$
882
  
$
6,708
  
$
732,121
  
$
5,752
  
$
744,581
 

September 30, 2015
 
30-59 Days
Past Due
  
60-89 Days
Past Due
  
Greater Than
90 Days
  
Total Past
Due
  
Current
  
Non-Accrual
Loans
  
Total Loans
Receivable
 
  
(Dollars in Thousands)
 
               
1-4 Family Real Estate
 
$
142
  
$
-
  
$
-
  
$
142
  
$
124,855
  
$
24
  
$
125,021
 
Commercial and Multi-Family Real Estate
  
-
   
-
   
-
   
-
   
309,295
   
904
   
310,199
 
Agricultural Real Estate
  
-
   
-
   
-
   
-
   
64,316
   
-
   
64,316
 
Consumer
  
152
   
-
   
13
   
165
   
33,362
   
-
   
33,527
 
Commercial Operating
  
-
   
-
   
-
   
-
   
29,893
   
-
   
29,893
 
Agricultural Operating
  
-
   
-
   
-
   
-
   
38,494
   
5,132
   
43,626
 
Premium Finance
  
702
   
362
   
1,728
   
2,792
   
103,713
   
-
   
106,505
 
Total
 
$
996
  
$
362
  
$
1,741
  
$
3,099
  
$
703,928
  
$
6,060
  
$
713,087
 
Impaired Loans
Impaired loans at December 31, 2015 and September 30, 2015 are as follows:

  
Recorded
Balance
  
Unpaid Principal
Balance
  
Specific
Allowance
 
December 31, 2015
 
(Dollars in Thousands)
 
       
Loans without a specific valuation allowance
      
1-4 Family Real Estate
 
$
117
  
$
117
  
$
-
 
Commercial and Multi-Family Real Estate
  
443
   
443
   
-
 
Commercial Operating
  
8
   
8
   
-
 
Total
 
$
568
  
$
568
  
$
-
 
Loans with a specific valuation allowance
            
Commercial and Multi-Family Real Estate
 
$
898
  
$
898
  
$
235
 
Agricultural Operating
  
4,832
   
4,982
   
3,614
 
Total
 
$
5,730
  
$
5,880
  
$
3,849
 

  
Recorded
Balance
  
Unpaid Principal
Balance
  
Specific
Allowance
 
September 30, 2015
 
(Dollars in Thousands)
 
       
Loans without a specific valuation allowance
      
1-4 Family Real Estate
 
$
121
  
$
121
  
$
-
 
Commercial and Multi-Family Real Estate
  
446
   
446
   
-
 
Commercial Operating
  
11
   
11
   
-
 
Total
 
$
578
  
$
578
  
$
-
 
Loans with a specific valuation allowance
            
Commercial and Multi-Family Real Estate
 
$
904
  
$
904
  
$
241
 
Agricultural Operating
  
5,132
   
5,282
   
3,252
 
Total
 
$
6,036
  
$
6,186
  
$
3,493
 

The following table provides the average recorded investment in impaired loans for the three month periods ended December 31, 2015 and 2014.
 
  
Three Months Ended December 31,
 
  
2015
  
2014
 
  
Average
Recorded
Investment
  
Average
Recorded
Investment
 
  
(Dollars in Thousands)
 
     
1-4 Family Real Estate
 
$
119
  
$
374
 
Commercial and Multi-Family Real Estate
  
1,347
   
4,246
 
Agricultural Real Estate
  
-
   
-
 
Consumer
  
-
   
-
 
Commercial Operating
  
10
   
22
 
Agricultural Operating
  
5,032
   
325
 
Premium Finance
  
-
   
-
 
Total
 
$
6,508
  
$
4,967
 
v3.3.1.900
EARNINGS PER COMMON SHARE ("EPS") (Tables)
 3 Months Ended
Dec. 31, 2015
EARNINGS PER COMMON SHARE ("EPS") [Abstract]  
Reconciliation of Net Income and Common Stock Share Amounts Used in Computation of Basic and Diluted EPS
A reconciliation of net income and common stock share amounts used in the computation of basic and diluted EPS for the three months ended December 31, 2015 and 2014 is presented below.
 
Three Months Ended December 31,
 
2015
  
2014
 
(Dollars in Thousands, Except Share and Per Share Data)
 
   
     
Earnings
    
Net Income
 
$
4,058
  
$
3,595
 
         
Basic EPS
        
Weighted average common shares outstanding
  
8,245,368
   
6,182,080
 
Less weighted average nonvested shares
  
(27,311
)
  
(4,000
)
Weighted average common shares outstanding
  
8,218,057
   
6,178,080
 
         
Earnings Per Common Share
        
Basic
 
$
0.49
  
$
0.58
 
         
Diluted EPS
        
Weighted average common shares outstanding for basic earnings per common share
  
8,218,057
   
6,178,080
 
Add dilutive effect of assumed exercises of stock options, net of tax benefits
  
66,198
   
61,276
 
Weighted average common and dilutive potential common shares outstanding
  
8,284,255
   
6,239,356
 
         
Earnings Per Common Share
        
Diluted
 
$
0.49
  
$
0.58
 
v3.3.1.900
SECURITIES (Tables)
 3 Months Ended
Dec. 31, 2015
SECURITIES [Abstract]  
Securities Available for Sale
The amortized cost, gross unrealized gains and losses and estimated fair values of available for sale and held to maturity securities at December 31, 2015 and September 30, 2015 are presented below.

Available For Sale
 
At December 31, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred securities
 
$
14,932
  
$
-
  
$
(2,547
)
 
$
12,385
 
Small business administration securities
  
83,704
   
1,202
   
(235
)
  
84,671
 
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
 
Non-bank qualified obligations of states and political subdivisions
  
650,267
   
13,922
   
(689
)
  
663,500
 
Mortgage-backed securities
  
586,217
   
712
   
(8,572
)
  
578,357
 
Total debt securities
  
1,335,120
   
15,836
   
(12,043
)
  
1,338,913
 
Common equities and mutual funds
  
730
   
308
   
(10
)
  
1,028
 
Total available for sale securities
 
$
1,335,850
  
$
16,144
  
$
(12,053
)
 
$
1,339,941
 

  
At September 30, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Trust preferred and corporate securities
 
$
16,199
  
$
8
  
$
(2,263
)
 
$
13,944
 
Small business administration securities
  
54,493
   
1,563
   
-
   
56,056
 
Non-bank qualified obligations of states and political subdivisions
  
603,165
   
7,240
   
(1,815
)
  
608,590
 
Mortgage-backed securities
  
580,165
   
1,283
   
(4,865
)
  
576,583
 
Total debt securities
  
1,254,022
   
10,094
   
(8,943
)
  
1,255,173
 
Common equities and mutual funds
  
639
   
283
   
(8
)
  
914
 
Total available for sale securities
 
$
1,254,661
  
$
10,377
  
$
(8,951
)
 
$
1,256,087
 
Securities Held to Maturity
Held to Maturity
 
At December 31, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Obligations of states and political subdivisions
 
$
20,699
  
$
102
  
$
(102
)
 
$
20,699
 
Non-bank qualified obligations of states and political subdivisions
  
320,260
   
3,789
   
(890
)
  
323,159
 
Mortgage-backed securities
  
70,376
   
-
   
(1,152
)
  
69,224
 
Total held to maturity securities
 
$
411,335
  
$
3,891
  
$
(2,144
)
 
$
413,082
 
 
  
At September 30, 2015
   
AMORTIZED
COST
      
GROSS
UNREALIZED
GAINS
      
GROSS
UNREALIZED
(LOSSES)
      
FAIR
VALUE
 
 
 
  
(Dollars in Thousands)
 
Debt securities
 
  
  
  
 
Obligations of states and political subdivisions
 
$
19,540
  
$
60
  
$
(187
)
 
$
19,413
 
Non-bank qualified obligations of states and political subdivisions
  
259,627
   
2,122
   
(419
)
  
261,330
 
Mortgage-backed securities
  
66,577
   
-
   
(473
)
  
66,104
 
Total held to maturity securities
 
$
345,744
  
$
2,182
  
$
(1,079
)
 
$
346,847
 
Trust Preferred Securities Included in Securities Available for Sale
Included in securities available for sale are trust preferred securities as follows:
 
At December 31, 2015
 
Issuer(1)
   
Amortized Cost
      
Fair Value
      
Unrealized
Gain (Loss)
      
S&P
Credit Rating
  
     
Moody's
Credit Rating
  
(Dollars in Thousands)
    
  
  
  
  
    
      
Key Corp. Capital I
 
$
4,987
  
$
4,069
  
$
(918
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
  
4,979
   
3,925
   
(1,054
)
 
BB
 
Baa2
PNC Capital Trust
  
4,966
   
4,391
   
(575
)
 
BBB-
 
Baa1
Total
 
$
14,932
  
$
12,385
  
$
(2,547
)
   
  
                

(1)Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.

At September 30, 2015
 
Issuer(1)
   
Amortized Cost
      
Fair Value
      
Unrealized
Gain (Loss)
      
S&P
Credit Rating
  
     
Moody's
Credit Rating
 
 
(Dollars in Thousands)
    
  
 
 
  
  
    
      
Key Corp. Capital I
 
$
4,986
  
$
4,189
  
$
(797
)
 
BB+
 
Baa2
Huntington Capital Trust II SE
  
4,979
   
4,076
   
(903
)
 
BB
 
Baa2
PNC Capital Trust
  
4,965
   
4,402
   
(563
)
 
BBB-
 
Baa1
Total
 
$
14,930
  
$
12,667
  
$
(2,263
)
   
  
                

(1)Trust preferred securities are single-issuance.  There are no known deferrals, defaults or excess subordination.
Gross Unrealized Losses and Fair Value of Securities Available for Sale in Continuous Unrealized Loss Position
Gross unrealized losses and fair value, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position at December 31, 2015 and September 30, 2015, are as follows:

Available For Sale
 
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At December 31, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Trust preferred securities
 
$
-
  
$
-
  
$
12,385
  
$
(2,547
)
 
$
12,385
  
$
(2,547
)
Small Business Administration securities
  
28,992
   
(235
)
  
-
   
-
   
28,992
   
(235
)
Non-bank qualified obligations of states and political subdivisions
  
20,924
   
(203
)
  
34,033
   
(486
)
  
54,957
   
(689
)
Mortgage-backed securities
  
498,285
   
(7,635
)
  
45,754
   
(937
)
  
544,039
   
(8,572
)
Total debt securities
  
548,201
   
(8,073
)
  
92,172
   
(3,970
)
  
640,373
   
(12,043
)
Common equities and mutual funds
  
-
   
-
   
119
   
(10
)
  
119
   
(10
)
Total available for sale securities
 
$
548,201
  
$
(8,073
)
 
$
92,291
  
$
(3,980
)
 
$
640,492
  
$
(12,053
)

  
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
At September 30, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Trust preferred and corporate securities
 
$
-
  
$
-
  
$
12,667
  
$
(2,263
)
 
$
12,667
  
$
(2,263
)
Non-bank qualified obligations of states and political subdivisions
  
97,006
   
(860
)
  
42,583
   
(955
)
  
139,589
   
(1,815
)
Mortgage-backed securities
  
448,988
   
(4,301
)
  
48,079
   
(564
)
  
497,067
   
(4,865
)
Total debt securities
  
545,994
   
(5,161
)
  
103,329
   
(3,782
)
  
649,323
   
(8,943
)
Common equities and mutual funds
  
-
   
-
   
121
   
(8
)
  
121
   
(8
)
Total available for sale securities
 
$
545,994
  
$
(5,161
)
 
$
103,450
  
$
(3,790
)
 
$
649,444
  
$
(8,951
)
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 December 31, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Obligations of states and political subdivisions
 
$
3,763
  
$
(8
)
 
$
8,560
  
$
(94
)
 
$
12,323
  
$
(102
)
Non-bank qualified obligations of states and political subdivisions
  
114,703
   
(811
)
  
9,679
   
(79
)
  
124,382
   
(890
)
Mortgage-backed securities
  
11,362
   
(140
)
  
57,863
   
(1,012
)
  
69,225
   
(1,152
)
Total held to maturity securities
 
$
129,828
  
$
(959
)
 
$
76,102
  
$
(1,185
)
 
$
205,930
  
$
(2,144
)

  
LESS THAN 12 MONTHS
  
OVER 12 MONTHS
  
TOTAL
 
 
At September 30, 2015
 
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
  
Fair
Value
  
Unrealized
(Losses)
 
  
(Dollars in Thousands)
 
Debt securities
            
Obligations of states and political subdivisions
 
$
5,528
  
$
(34
)
 
$
7,964
  
$
(153
)
 
$
13,492
  
$
(187
)
Non-bank qualified obligations of states and political subdivisions
  
78,663
   
(365
)
  
4,136
   
(54
)
  
82,799
   
(419
)
Mortgage-backed securities
  
5,509
   
(43
)
  
60,595
   
(430
)
  
66,104
   
(473
)
Total held to maturity securities
 
$
89,700
  
$
(442
)
 
$
72,695
  
$
(637
)
 
$
162,395
  
$
(1,079
)
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity
The amortized cost and fair value of debt securities by contractual maturity are shown below.  Certain securities have call features which allow the issuer to call the security prior to maturity.  Expected maturities may differ from contractual maturities in mortgage-backed securities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.  Therefore, mortgage-backed securities are not included in the maturity categories in the following maturity summary.  The expected maturities of certain Small Business Administration securities may differ from contractual maturities because the borrowers may have the right to prepay the obligation. However, certain prepayment penalties may apply.

Available For Sale
 
AMORTIZED
COST
  
FAIR
VALUE
 
At December 31, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
3,202
   
3,269
 
Due after five years through ten years
  
416,377
   
425,445
 
Due after ten years
  
329,324
   
331,842
 
   
748,903
   
760,556
 
Mortgage-backed securities
  
586,217
   
578,357
 
Common equities and mutual funds
  
730
   
1,028
 
Total available for sale securities
 
$
1,335,850
  
$
1,339,941
 
 
  
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
-
  
$
-
 
Due after one year through five years
  
1,174
   
1,207
 
Due after five years through ten years
  
370,087
   
376,394
 
Due after ten years
  
302,596
   
300,989
 
   
673,857
   
678,590
 
Mortgage-backed securities
  
580,165
   
576,583
 
Common equities and mutual funds
  
639
   
914
 
Total available for sale securities
 
$
1,254,661
  
$
1,256,087
 
                              
Held To Maturity
 
 
AMORTIZED
COST
  
FAIR
VALUE
 
At December 31, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
225
  
$
226
 
Due after one year through five years
  
9,488
   
9,475
 
Due after five years through ten years
  
143,173
   
145,014
 
Due after ten years
  
188,073
   
189,143
 
   
340,959
   
343,858
 
Mortgage-backed securities
  
70,376
   
69,224
 
Total held to maturity securities
 
$
411,335
  
$
413,082
 

  
AMORTIZED
COST
  
FAIR
VALUE
 
At September 30, 2015
 
(Dollars in Thousands)
 
     
Due in one year or less
 
$
95
  
$
96
 
Due after one year through five years
  
8,411
   
8,430
 
Due after five years through ten years
  
140,145
   
140,505
 
Due after ten years
  
130,516
   
131,712
 
   
279,167
   
280,743
 
Mortgage-backed securities
  
66,577
   
66,104
 
Total held to maturity securities
 
$
345,744
  
$
346,847
 
v3.3.1.900
STOCK OPTION PLAN (Tables)
 3 Months Ended
Dec. 31, 2015
STOCK OPTION PLAN [Abstract]  
Activity of Options
The following tables show the activity of options and nonvested (restricted) shares granted, exercised, or forfeited under all of the Company’s option and incentive plans for the three months ended December 31, 2015:

  
Number
of
Shares
  
Weighted
Average
Exercise
Price
  
Weighted
Average
Remaining
Contractual
Term (Yrs)
  
Aggregate
Intrinsic
Value
 
  
(Dollars in Thousands, Except Share and Per Share Data)
 
         
Options outstanding, September 30, 2015
  
189,088
  
$
25.74
   
3.16
  
$
3,027
 
Granted
  
-
   
-
       
-
 
Exercised
  
(6,111
)
  
28.90
       
99
 
Forfeited or expired
  
-
   
-
       
-
 
Options outstanding, December 31, 2015
  
182,977
  
$
25.64
   
2.93
  
$
3,701
 
                 
Options exercisable, December 31, 2015
  
182,977
  
$
25.64
   
2.93
  
$
3,701
 

  
Number of
Shares
  
Weighted
Average
Fair Value
at Grant
 
(Dollars in Thousands, Except Share and Per Share Data)
 
     
Nonvested shares outstanding, September 30, 2015
  
44,002
  
$
40.80
 
Granted
  
1,000
   
45.00
 
Vested
  
(15,208
)
  
41.54
 
Forfeited or expired
  
(313
)
  
41.77
 
Nonvested shares outstanding, December 31, 2015
  
29,481
  
$
40.56
 
v3.3.1.900
SEGMENT INFORMATION (Tables)
 3 Months Ended
Dec. 31, 2015
SEGMENT INFORMATION [Abstract]  
Segment Information of Entity
The following tables present segment data for the Company for the three months ended December 31, 2015 and 2014, respectively.

  
Payments
  
Banking
  
Corporate
Services/Other
  
Total
 
         
Three Months Ended December 31, 2015
        
Interest income
 
$
1,964
  
$
8,851
  
$
7,460
  
$
18,275
 
Interest expense
  
40
   
253
   
427
   
720
 
Net interest income (expense)
  
1,924
   
8,598
   
7,033
   
17,555
 
Provision (recovery) for loan losses
  
80
   
706
   
-
   
786
 
Non-interest income
  
15,352
   
1,056
   
426
   
16,834
 
Non-interest expense
  
16,017
   
5,428
   
8,563
   
30,008
 
Income (loss) before tax
  
1,179
   
3,520
   
(1,104
)
  
3,595
 
                 
Total assets
  
51,359
   
735,222
   
2,173,653
   
2,960,234
 
Total deposits
  
2,341,783
   
227,260
   
-
   
2,569,043
 

  
Payments
  
Banking
  
Corporate
Services/Other
  
Total
 
         
Three Months Ended December 31, 2014
        
Interest income
 
$
1,567
  
$
6,941
  
$
5,724
  
$
14,232
 
Interest expense
  
45
   
279
   
337
   
661
 
Net interest income (expense)
  
1,522
   
6,662
   
5,387
   
13,571
 
Provision (recovery) for loan losses
  
-
   
48
   
-
   
48
 
Non-interest income
  
13,052
   
579
   
(957
)
  
12,674
 
Non-interest expense
  
11,673
   
5,263
   
5,477
   
22,413
 
Income (loss) before tax
  
2,901
   
1,930
   
(1,047
)
  
3,784
 
                 
Total assets
  
41,096
   
599,027
   
1,467,940
   
2,108,063
 
Total deposits
  
1,554,114
   
234,765
   
-
   
1,788,879
 
v3.3.1.900
FAIR VALUE MEASUREMENTS (Tables)
 3 Months Ended
Dec. 31, 2015
FAIR VALUE MEASUREMENTS [Abstract]  
Summary of Fair Values of Securities Available for Sale and Held to Maturity
The following table summarizes the fair values of securities available for sale and held to maturity at December 31, 2015 and September 30, 2015.  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 December 31, 2015
 
  
Available For Sale
  
Held to Maturity
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
  
Total
  
Level 1
  
Level 2
  
Level 3
 
Debt securities
                
Trust preferred securities
 
$
12,385
  
$
-
  
$
12,385
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Small business administration securities
  
84,671
   
-
   
84,671
   
-
   
-
   
-
   
-
   
-
 
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
   
20,699
   
-
   
20,699
   
-
 
Non-bank qualified obligations of states and political subdivisions
  
663,500
   
-
   
663,500
   
-
   
323,159
   
-
   
323,159
   
-
 
Mortgage-backed securities
  
578,357
   
-
   
578,357
   
-
   
69,224
   
-
   
69,224
   
-
 
Total debt securities
  
1,338,913
   
-
   
1,338,913
   
-
   
413,082
   
-
   
413,082
   
-
 
Common equities and mutual funds
  
1,028
   
1,028
   
-
   
-
   
-
   
-
   
-
   
-
 
Total securities
 
$
1,339,941
  
$
1,028
  
$
1,338,913
  
$
-
  
$
413,082
  
$
-
  
$
413,082
  
$
-
 

  
Fair Value At September 30, 2015
 
  
Available For Sale
  
Held to Maturity
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
  
Total
  
Level 1
  
Level 2
  
Level 3
 
Debt securities
                
Trust preferred and corporate securities
 
$
13,944
  
$
-
  
$
13,944
  
$
-
  
$
-
  
$
-
  
$
-
  
$
-
 
Small business administration securities
  
56,056
   
-
   
56,056
   
-
   
-
   
-
   
-
   
-
 
Obligations of states and political subdivisions
  
-
   
-
   
-
   
-
   
19,413
   
-
   
19,413
   
-
 
Non-bank qualified obligations of states and political subdivisions
  
608,590
   
-
   
608,590
   
-
   
261,330
   
-
   
261,330
   
-
 
Mortgage-backed securities
  
576,583
   
-
   
576,583
   
-
   
66,104
   
-
   
66,104
   
-
 
Total debt securities
  
1,255,173
   
-
   
1,255,173
   
-
   
346,847
   
-
   
346,847
   
-
 
Common equities and mutual funds
  
914
   
914
   
-
   
-
   
-
   
-
   
-
   
-
 
Total securities
 
$
1,256,087
  
$
914
  
$
1,255,173
  
$
-
  
$
346,847
  
$
-
  
$
346,847
  
$
-
 
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 December 31, 2015 and September 30, 2015.

  
Fair Value at December 31, 2015
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
 
Impaired Loans, net
        
Commercial and multi-family real estate loans
 
$
663
  
$
-
  
$
-
  
$
663
 
Agricultural operating loans
  
1,218
   
-
   
-
   
1,218
 
Total
 
$
1,881
  
$
-
  
$
-
  
$
1,881
 

  
Fair Value at September 30, 2015
 
(Dollars in Thousands)
 
Total
  
Level 1
  
Level 2
  
Level 3
 
Impaired Loans, net
        
Commercial and multi-family real estate loans
 
$
663
  
$
-
  
$
-
  
$
663
 
Agricultural operating loans
  
1,880
   
-
   
-
   
1,880
 
Total
 
$
2,543
  
$
-
  
$
-
  
$
2,543
 
Quantitative Information about Level 3 Fair Value Measurements
  
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
 
Fair Value at
December 31, 2015
 
Valuation
Technique
Unobservable Input
        
Impaired Loans, net
 
$
1,881
 
Market approach
Appraised values (1)
                                         
 (1) The Company generally relies on external appraisers to develop this information.  Management reduced
the appraised value by estimated selling costs in a range of 4% to 10%.

  
Quantitative Information About Level 3 Fair Value Measurements
(Dollars in Thousands)
 
Fair Value at
September 30, 2015
 
Valuation
Technique
Unobservable Input
        
Impaired Loans, net
 
$
2,543
 
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 December 31, 2015 and September 30, 2015.

  
December 31, 2015
 
  
Carrying
Amount
  
Estimated
Fair Value
  
Level 1
  
Level 2
  
Level 3
 
  
(Dollars in Thousands)
 
Financial assets
          
Cash and cash equivalents
 
$
293,147
  
$
293,147
  
$
293,147
  
$
-
  
$
-
 
                     
Securities available for sale
  
1,339,941
   
1,339,941
   
1,028
   
1,338,913
   
-
 
Securities held to maturity
  
411,335
   
413,082
   
-
   
413,082
   
-
 
Total securities
  
1,751,276
   
1,753,023
   
1,028
   
1,751,995
   
-
 
                     
Loans receivable:
                    
One to four family residential mortgage loans
  
134,850
   
135,612
   
-
   
-
   
135,612
 
Commercial and multi-family real estate loans
  
322,125
   
328,503
   
-
   
-
   
328,503
 
Agricultural real estate loans
  
64,181
   
67,673
   
-
   
-
   
67,673
 
Consumer loans
  
34,868
   
34,590
   
-
   
-
   
34,590
 
Commercial operating loans
  
37,505
   
27,985
   
-
   
-
   
27,985
 
Agricultural operating loans
  
40,412
   
31,338
   
-
   
-
   
31,338
 
Premium finance loans
  
110,640
   
113,101
   
-
   
-
   
113,101
 
Total loans receivable
  
744,581
   
738,802
   
-
   
-
   
738,802
 
                     
Federal Home Loan Bank stock
  
4,810
   
4,810
   
-
   
4,810
   
-
 
Accrued interest receivable
  
16,306
   
16,306
   
16,306
   
-
   
-
 
                     
Financial liabilities
                    
Noninterest bearing demand deposits
  
2,360,403
   
2,360,403
   
2,360,403
   
-
   
-
 
Interest bearing demand deposits, savings, and money markets
  
134,661
   
134,661
   
134,661
   
-
   
-
 
Certificates of deposit
  
73,979
   
73,408
   
-
   
73,408
   
-
 
Total deposits
  
2,569,043
   
2,568,472
   
2,495,064
   
73,408
   
-
 
                     
Advances from Federal Home Loan Bank
  
57,000
   
58,228
   
-
   
58,228
   
-
 
Federal funds purchased
  
-
   
-
       
-
     
Securities sold under agreements to repurchase
  
2,007
   
2,007
   
-
   
2,007
   
-
 
Subordinated debentures
  
10,310
   
10,414
   
-
   
10,414
   
-
 
Accrued interest payable
  
229
   
229
   
229
   
-
   
-
 
 
  
September 30, 2015
 
  
Carrying
Amount
  
Estimated
Fair Value
  
Level 1
  
Level 2
  
Level 3
 
  
(Dollars in Thousands)
 
Financial assets
          
Cash and cash equivalents
 
$
27,658
  
$
27,658
  
$
27,658
  
$
-
  
$
-
 
                     
Securities available for sale
  
1,256,087
   
1,256,087
   
914
   
1,255,173
   
-
 
Securities held to maturity
  
345,744
   
346,847
   
-
   
346,847
   
-
 
Total securities
  
1,601,831
   
1,602,934
   
914
   
1,602,020
   
-
 
                     
Loans receivable:
                    
One to four family residential mortgage loans
  
125,021
   
121,385
   
-
   
-
   
121,385
 
Commercial and multi-family real estate loans
  
310,199
   
314,372
   
-
   
-
   
314,372
 
Agricultural real estate loans
  
64,316
   
66,682
   
-
   
-
   
66,682
 
Consumer loans
  
33,527
   
33,504
   
-
   
-
   
33,504
 
Commercial operating loans
  
29,893
   
23,245
   
-
   
-
   
23,245
 
Agricultural operating loans
  
43,626
   
40,003
   
-
   
-
   
40,003
 
Premium finance loans
  
106,505
   
108,583
   
-
   
-
   
108,583
 
Total loans receivable
  
713,087
   
707,774
   
-
   
-
   
707,774
 
                     
Federal Home Loan Bank stock
  
24,410
   
24,410
   
-
   
24,410
   
-
 
Accrued interest receivable
  
13,352
   
13,352
   
13,352
   
-
   
-
 
                     
Financial liabilities
                    
Noninterest bearing demand deposits
  
1,449,101
   
1,369,672
   
1,369,672
   
-
   
-
 
Interest bearing demand deposits, savings, and money markets
  
117,262
   
115,204
   
115,204
   
-
   
-
 
Certificates of deposit
  
91,171
   
91,304
   
-
   
91,304
   
-
 
Total deposits
  
1,657,534
   
1,576,180
   
1,484,876
   
91,304
   
-
 
                     
Advances from Federal Home Loan Bank
  
7,000
   
8,630
   
-
   
8,630
   
-
 
Federal funds purchased
  
540,000
   
540,000
   
-
   
540,000
   
-
 
Securities sold under agreements to repurchase
  
4,007
   
4,007
   
-
   
4,007
   
-
 
Subordinated debentures
  
10,310
   
10,416
   
-
   
10,416
   
-
 
Accrued interest payable
  
272
   
272
   
272
   
-
   
-
 
v3.3.1.900
GOODWILL AND INTANGIBLE ASSETS (Tables)
 3 Months Ended
Dec. 31, 2015
GOODWILL AND INTANGIBLE ASSETS [Abstract]  
Summary of Amortizable Intangible Assets
As part of the each business combination, the Company also recognized the following amortizable intangible assets:

AFS/IBEX
Intangible
 
Amount
  
Book Amortization
Period (Years)
 
Method
         
Trademark
 
$
540
   
15
 
Straight Line
Non-Compete
 
$
260
   
3
 
Straight Line
Customer Relationships
 
$
7,240
   
30
 
Accelerated
Other
 
$
173
  
Varied
 
Straight Line

Refund Advantage
Intangible
 
Amount
  
Book Amortization
Period (Years)
 
Method
         
Trademark
 
$
4,950
   
15
 
Accelerated
Non-Compete
 
$
40
   
3
 
Straight Line
Customer Relationships
 
$
18,800
  
12 to 20
 
Accelerated
Other
 
$
329
  
Varied
 
Straight Line
Changes in Carrying Amount of Goodwill and Intangible Assets
The changes in the carrying amount of the Company’s goodwill and intangible assets for the three months ended December 31, 2015 and 2014 are as follows:

  
December 31,
 
  
2015
  
2014
 
  
(Dollars in Thousands)
 
Goodwill
    
Beginning Balance
 
$
36,928
  
$
-
 
Acquisitions during the period
  
-
   
11,578
 
Write-offs during the period
  
-
   
-
 
Ending Balance
 
$
36,928
  
$
11,578
 
 
  
Trademark
  
Non-Compete
  
Customer
Relationships
  
All Others
  
Total
 
Intangibles
  
Balance as of September 30, 2015
 
$
5,439
  
$
227
  
$
24,811
  
$
3,100
  
$
33,577
 
Acquisitions during the period
  
-
   
-
   
-
   
54
   
54
 
Amortization during the period
  
(72
)
  
(25
)
  
(1,064
)
  
(52
)
  
(1,213
)
Write-offs during the period
  
-
   
-
   
-
   
-
   
-
 
Balance as of December 31, 2015
 
$
5,367
  
$
202
  
$
23,747
  
$
3,102
  
$
32,418
 
v3.3.1.900
INCOME TAXES (Tables)
 3 Months Ended
Dec. 31, 2015
INCOME TAXES [Abstract]  
Reconciliation of Total Income Tax Expense
The Company and its subsidiaries file a consolidated federal income tax return on a fiscal year basis.  Total income tax expense differs from expected tax for the three months ended December 31, 2015 and 2014 as follows:

  
Income Tax Expense (Benefit)
For The Three Months Ended
 
  
December 31, 2015
  
December 31, 2014
 
  
(Dollars in Thousands)
 
     
Income tax expense at federal tax rate
 
$
1,258
  
$
1,324
 
Increase (decrease) resulting from:
        
State income taxes net of federal benefit
  
167
   
119
 
Nontaxable buildup in cash surrender value
  
(131
)
  
(100
)
Incentive stock option expense
  
(18
)
  
-
 
Tax exempt income
  
(1,790
)
  
(1,068
)
Nondeductible expenses
  
39
   
12
 
Other, net
  
12
   
(98
)
Total income tax expense (benefit)
 
$
(463
)
 
$
189
 
v3.3.1.900
CREDIT DISCLOSURES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable $ 744,581 $ 713,087 $ 596,322
Less [Abstract]      
Allowance for Loan Losses (6,666) (6,255)  
Net Deferred Loan Origination Fees (787) (577)  
Total Loans Receivable, Net 737,128 706,255  
1-4 Family Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 134,850 125,021 111,773
Commercial and Multi-Family Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 322,125 310,199 251,022
Agricultural Real Estate [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 64,181 64,316 58,193
Consumer [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 34,868 33,527 33,796
Commercial Operating [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable 37,505 29,893 28,057
Agricultural Operating [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Total Loans Receivable $ 40,412 43,626 39,325
Premium Finance [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Period of delay or shortfall in payments after which a loan is evaluated for impairment 210 days    
Total Loans Receivable $ 110,640 $ 106,505 $ 74,156
Non-Premium Finance [Member]      
Accounts, Notes, Loans and Financing Receivable [Line Items]      
Period of delay or shortfall in payments after which a loan is evaluated for impairment 90 days    
v3.3.1.900
CREDIT DISCLOSURES, Allowance for Loan Losses (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Activity in allowance for loan losses [Roll Forward]          
Beginning balance $ 6,255 $ 5,397      
Provision (recovery) for loan losses 786 48      
Charge offs (390) (231)      
Recoveries 15 11      
Ending balance 6,666 5,225      
Ending balance: individually evaluated for impairment     $ 3,849   $ 606
Ending balance: collectively evaluated for impairment     2,817   4,619
Total 6,255 5,397 6,666 $ 6,255 5,225
Loans [Abstract]          
Ending balance: individually evaluated for impairment     6,298   2,091
Ending balance: collectively evaluated for impairment     738,283   594,231
Total Loans Receivable     744,581 713,087 596,322
1-4 Family Real Estate [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 278 552      
Provision (recovery) for loan losses 7 (40)      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 285 512      
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     285   512
Total 278 552 285 278 512
Loans [Abstract]          
Ending balance: individually evaluated for impairment     117   348
Ending balance: collectively evaluated for impairment     134,733   111,425
Total Loans Receivable     134,850 125,021 111,773
Commercial and Multi-Family Real Estate [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 1,187 1,575      
Provision (recovery) for loan losses 7 (169)      
Charge offs 0 (214)      
Recoveries 0 6      
Ending balance 1,194 1,198      
Ending balance: individually evaluated for impairment     235   310
Ending balance: collectively evaluated for impairment     959   888
Total 1,187 1,575 1,194 1,187 1,198
Loans [Abstract]          
Ending balance: individually evaluated for impairment     1,341   1,427
Ending balance: collectively evaluated for impairment     320,784   249,595
Total Loans Receivable     322,125 310,199 251,022
Agricultural Real Estate [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 163 263      
Provision (recovery) for loan losses 8 3      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 171 266      
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     171   266
Total 163 263 171 163 266
Loans [Abstract]          
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     64,181   58,193
Total Loans Receivable     64,181 64,316 58,193
Consumer [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 20 78      
Provision (recovery) for loan losses 0 0      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 20 78      
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     20   78
Total 20 78 20 20 78
Loans [Abstract]          
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     34,868   33,796
Total Loans Receivable     34,868 33,527 33,796
Commercial Operating [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 28 93      
Provision (recovery) for loan losses 79 (9)      
Charge offs 0 0      
Recoveries 0 1      
Ending balance 107 85      
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     107   85
Total 28 93 107 28 85
Loans [Abstract]          
Ending balance: individually evaluated for impairment     8   20
Ending balance: collectively evaluated for impairment     37,497   28,037
Total Loans Receivable     37,505 29,893 28,057
Agricultural Operating [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 3,537 719      
Provision (recovery) for loan losses 319 (89)      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 3,856 630      
Ending balance: individually evaluated for impairment     3,614   296
Ending balance: collectively evaluated for impairment     242   334
Total 3,537 719 3,856 3,537 630
Loans [Abstract]          
Ending balance: individually evaluated for impairment     4,832   296
Ending balance: collectively evaluated for impairment     35,580   39,029
Total Loans Receivable     40,412 43,626 39,325
Premium Finance [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 293 0      
Provision (recovery) for loan losses 506 48      
Charge offs (390) (17)      
Recoveries 15 4      
Ending balance 424 35      
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     424   35
Total 293 0 424 293 35
Loans [Abstract]          
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     110,640   74,156
Total Loans Receivable     110,640 106,505 74,156
Unallocated [Member]          
Activity in allowance for loan losses [Roll Forward]          
Beginning balance 749 2,117      
Provision (recovery) for loan losses (140) 304      
Charge offs 0 0      
Recoveries 0 0      
Ending balance 609 2,421      
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     609   2,421
Total $ 749 $ 2,117 609 $ 749 2,421
Loans [Abstract]          
Ending balance: individually evaluated for impairment     0   0
Ending balance: collectively evaluated for impairment     0   0
Total Loans Receivable     $ 0   $ 0
v3.3.1.900
CREDIT DISCLOSURES, Credit Quality Indicator (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
CREDIT DISCLOSURES [Abstract]      
Percentage of specific allowance for losses 100.00%    
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 744,581 $ 713,087 $ 596,322
Exposure of the entity expressed in loan to value ratio 80.00%    
Tenure of ARM loan offered five and ten year    
Annual cap of ARM loans 2.00%    
Lifetime cap of ARM loans 6.00%    
Maturity period of fixed rate loans 30 years    
Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 696,792 666,177  
Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 32,752 30,125  
Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 5,000 4,901  
Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 7,580 11,884  
Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 2,457 0  
1-4 Family Real Estate [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 134,850 125,021 111,773
Maturity period of loans receivable 30 years    
1-4 Family Real Estate [Member] | Minimum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Loan to value ratio 80.00%    
1-4 Family Real Estate [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Loan to value ratio 100.00%    
1-4 Family Real Estate [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 133,824 124,775  
1-4 Family Real Estate [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 994 212  
1-4 Family Real Estate [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 9 10  
1-4 Family Real Estate [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 23 24  
1-4 Family Real Estate [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial and Multi-Family Real Estate [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 322,125 310,199 251,022
Maturity period of fixed rate loans 20 years    
Commercial and Multi-Family Real Estate [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Percentage value for securing the loan 80.00%    
Commercial and Multi-Family Real Estate [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 319,608 307,876  
Commercial and Multi-Family Real Estate [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 1,619 1,419  
Commercial and Multi-Family Real Estate [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial and Multi-Family Real Estate [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 898 904  
Commercial and Multi-Family Real Estate [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Agricultural Real Estate [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 64,181 64,316 58,193
Maturity period of fixed rate loans 10 years    
Agricultural Real Estate [Member] | Minimum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Amortization period of loans 20 years    
Agricultural Real Estate [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Amortization period of loans 25 years    
Percentage value for securing the loan 75.00%    
Agricultural Real Estate [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 33,275 35,106  
Agricultural Real Estate [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 28,357 26,703  
Agricultural Real Estate [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 877 877  
Agricultural Real Estate [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 1,672 1,630  
Agricultural Real Estate [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 34,868 33,527 33,796
Maturity period of fixed rate loans 5 years    
Consumer [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Percentage value for securing the loan 90.00%    
Consumer [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 34,868 33,527  
Consumer [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Consumer [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial Operating [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 37,505 29,893 28,057
Maturity period of loans receivable 1 year    
Commercial Operating [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Percentage value for securing the loan 80.00%    
Commercial Operating [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 36,598 29,052  
Commercial Operating [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 797 712  
Commercial Operating [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Commercial Operating [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 110 129  
Commercial Operating [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Agricultural Operating [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 40,412 43,626 39,325
Maturity period of fixed rate loans 7 years    
Agricultural Operating [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 27,978 29,336  
Agricultural Operating [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 986 1,079  
Agricultural Operating [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 4,114 4,014  
Agricultural Operating [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 4,877 9,197  
Agricultural Operating [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 2,457 0  
Premium Finance [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 110,640 106,505 $ 74,156
Premium Finance [Member] | Minimum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Percentage of down payment 20.00%    
Average period of finance 9 months    
Period of conversion of collateral into cash 60 days    
Typical period of delinquency 90 days    
Premium Finance [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Percentage of down payment 25.00%    
Average period of finance 10 months    
Period of conversion of collateral into cash 150 days    
Premium Finance [Member] | Pass [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 110,640 106,505  
Premium Finance [Member] | Watch [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member] | Special Mention [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member] | Substandard [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable 0 0  
Premium Finance [Member] | Doubtful [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Total Loans Receivable $ 0 $ 0  
Automobile Loan [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Maturity period of loans receivable 60 months    
Automobile Loan [Member] | Maximum [Member]      
Financing Receivable, Recorded Investment [Line Items]      
Percentage value for securing the loan 80.00%    
v3.3.1.900
CREDIT DISCLOSURES, Receivables Past Due (Details) - USD ($)
$ in Thousands
Dec. 31, 2015
Sep. 30, 2015
Dec. 31, 2014
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due $ 6,708 $ 3,099  
Current 732,121 703,928  
Non-Accrual Loans 5,752 6,060  
Total Loans Receivable 744,581 713,087 $ 596,322
30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 4,326 996  
60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 1,500 362  
Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 882 1,741  
1-4 Family Real Estate [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 142  
Current 134,827 124,855  
Non-Accrual Loans 23 24  
Total Loans Receivable 134,850 125,021 111,773
1-4 Family Real Estate [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 142  
1-4 Family Real Estate [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
1-4 Family Real Estate [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Commercial and Multi-Family Real Estate [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Current 321,228 309,295  
Non-Accrual Loans 897 904  
Total Loans Receivable 322,125 310,199 251,022
Commercial and Multi-Family Real Estate [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Commercial and Multi-Family Real Estate [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Commercial and Multi-Family Real Estate [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Agricultural Real Estate [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 4,608 0  
Current 59,573 64,316  
Non-Accrual Loans 0 0  
Total Loans Receivable 64,181 64,316 58,193
Agricultural Real Estate [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 3,548 0  
Agricultural Real Estate [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 1,060 0  
Agricultural Real Estate [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Consumer [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 26 165  
Current 34,842 33,362  
Non-Accrual Loans 0 0  
Total Loans Receivable 34,868 33,527 33,796
Consumer [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 152  
Consumer [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Consumer [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 26 13  
Commercial Operating [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Current 37,505 29,893  
Non-Accrual Loans 0 0  
Total Loans Receivable 37,505 29,893 28,057
Commercial Operating [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Commercial Operating [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Commercial Operating [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Agricultural Operating [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Current 35,580 38,494  
Non-Accrual Loans 4,832 5,132  
Total Loans Receivable 40,412 43,626 39,325
Agricultural Operating [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Agricultural Operating [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Agricultural Operating [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 0 0  
Premium Finance [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 2,074 2,792  
Current 108,566 103,713  
Non-Accrual Loans 0 0  
Total Loans Receivable 110,640 106,505 $ 74,156
Premium Finance [Member] | 30-59 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 778 702  
Premium Finance [Member] | 60-89 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 440 362  
Premium Finance [Member] | Greater Than 90 Days [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due 856 $ 1,728  
Premium Finance [Member] | Greater Than 210 Days Past Due [Member]      
Financing Receivable, Recorded Investment, Past Due [Line Items]      
Total Past Due $ 0    
v3.3.1.900
CREDIT DISCLOSURES, Impaired Receivables (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Sep. 30, 2015
Loans without a specific valuation allowance [Abstract]      
Recorded balance $ 568   $ 578
Unpaid principal balance 568   578
Loans with a specific valuation allowance [Abstract]      
Recorded Balance 5,730   6,036
Unpaid principal balance 5,880   6,186
Specific allowance 3,849   3,493
Average recorded investment 6,508 $ 4,967  
1-4 Family Real Estate [Member]      
Loans without a specific valuation allowance [Abstract]      
Recorded balance 117   121
Unpaid principal balance 117   121
Loans with a specific valuation allowance [Abstract]      
Average recorded investment 119 374  
Commercial and Multi-Family Real Estate [Member]      
Loans without a specific valuation allowance [Abstract]      
Recorded balance 443   446
Unpaid principal balance 443   446
Loans with a specific valuation allowance [Abstract]      
Recorded Balance 898   904
Unpaid principal balance 898   904
Specific allowance 235   241
Average recorded investment 1,347 4,246  
Agricultural Real Estate [Member]      
Loans with a specific valuation allowance [Abstract]      
Average recorded investment 0 0  
Consumer [Member]      
Loans with a specific valuation allowance [Abstract]      
Average recorded investment 0 0  
Commercial Operating [Member]      
Loans without a specific valuation allowance [Abstract]      
Recorded balance 8   11
Unpaid principal balance 8   11
Loans with a specific valuation allowance [Abstract]      
Average recorded investment 10 22  
Agricultural Operating [Member]      
Loans with a specific valuation allowance [Abstract]      
Recorded Balance 4,832   5,132
Unpaid principal balance 4,982   5,282
Specific allowance 3,614   $ 3,252
Average recorded investment 5,032 325  
Premium Finance [Member]      
Loans with a specific valuation allowance [Abstract]      
Average recorded investment $ 0 $ 0  
v3.3.1.900
CREDIT DISCLOSURES, Troubled Debt Restructurings (Details) - Loan
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Troubled debt restructurings [Abstract]    
Loans modified in TDR 0 0
Loans modified in TDR, subsequent default 0 0
v3.3.1.900
ALLOWANCE FOR LOAN LOSSES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Sep. 30, 2015
ALLOWANCE FOR LOAN LOSSES [Abstract]      
Allowance for loan losses $ 6,666   $ 6,255
Increase in allowance for loan losses 400    
Provision for loan losses 786 $ 48  
Net charge offs (recoveries) $ 400 $ 200  
v3.3.1.900
EARNINGS PER COMMON SHARE ("EPS") (Details) - USD ($)
$ / shares in Units, $ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Earnings [Abstract]    
Net Income $ 4,058 $ 3,595
Basic EPS [Abstract]    
Weighted average common shares outstanding (in shares) 8,245,368 6,182,080
Less weighted average nonvested shares (in shares) (27,311) (4,000)
Weighted average common shares outstanding (in shares) 8,218,057 6,178,080
Earnings Per Common Share [Abstract]    
Basic (in dollars per share) $ 0.49 $ 0.58
Diluted EPS [Abstract]    
Weighted average common shares outstanding for basic earnings per common share (in shares) 8,218,057 6,178,080
Add dilutive effect of assumed exercises of stock options, net of tax benefits (in shares) 66,198 61,276
Weighted average common and dilutive potential common shares outstanding (in shares) 8,284,255 6,239,356
Earnings Per Common Share [Abstract]    
Diluted (in dollars per share) $ 0.49 $ 0.58
Stock Options [Member]    
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]    
Securities excluded from computing diluted EPS (in shares)   29,199
v3.3.1.900
SECURITIES (Details) - USD ($)
$ in Thousands
Dec. 31, 2015
Sep. 30, 2015
Available-for-sale debt securities [Abstract]    
Fair value $ 578,357 $ 576,583
Available-for-sale equity securities [Abstract]    
Fair value 761,584 679,504
Available-for-sale securities [Abstract]    
Amortized cost 1,335,850 1,254,661
Gross unrealized gains 16,144 10,377
Gross unrealized (losses) (12,053) (8,951)
Fair value 1,339,941 1,256,087
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 548,201 545,994
LESS THAN 12 MONTHS, Unrealized (Losses) (8,073) (5,161)
OVER 12 MONTHS, Fair Value 92,291 103,450
OVER 12 MONTHS, Unrealized (Losses) (3,980) (3,790)
TOTAL, Fair Value 640,492 649,444
TOTAL, Unrealized (Losses) (12,053) (8,951)
AMORTIZED COST [Abstract]    
Due in one year or less 0 0
Due after one year through five years 3,202 1,174
Due after five years through ten years 416,377 370,087
Due after ten years 329,324 302,596
Total 748,903 673,857
Mortgage-backed securities 586,217 580,165
Common equities and mutual funds 730 639
Amortized cost 1,335,850 1,254,661
FAIR VALUE [Abstract]    
Due in one year or less 0 0
Due after one year through five years 3,269 1,207
Due after five years through ten years 425,445 376,394
Due after ten years 331,842 300,989
Total 760,556 678,590
Mortgage-backed securities 578,357 576,583
Common equities and mutual funds 1,028 914
Total available for sale securities 1,339,941 1,256,087
Held-to-maturity Securities [Abstract]    
Amortized cost 411,335 345,744
Gross unrealized gains 3,891 2,182
Gross unrealized (losses) (2,144) (1,079)
Fair value 413,082 346,847
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 129,828 89,700
OVER 12 MONTHS, Fair Value 76,102 72,695
TOTAL, Fair Value 205,930 162,395
LESS THAN 12 MONTHS, Unrealized (Losses) (959) (442)
OVER 12 MONTHS, Unrealized (Losses) (1,185) (637)
TOTAL, Unrealized (Losses) (2,144) (1,079)
AMORTIZED COST [Abstract]    
Due in one year or less 225 95
Due after one year through five years 9,488 8,411
Due after five years through ten years 143,173 140,145
Due after ten years 188,073 130,516
Total 340,959 279,167
Mortgage-backed securities 70,376 66,577
Amortized cost 411,335 345,744
FAIR VALUE [Abstract]    
Due in one year or less 227 96
Due after one year through five years 9,475 8,430
Due after five years through ten years 145,013 140,505
Due after ten years 189,143 131,712
Total 343,858 280,743
Mortgage-backed securities 69,224 66,104
Total held to maturity securities 413,082 346,847
Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1] 14,932 14,930
Unrealized gain (loss) [1] (2,547) (2,263)
Fair value [1] 12,385 12,667
AMORTIZED COST [Abstract]    
Amortized cost [1] 14,932 14,930
FAIR VALUE [Abstract]    
Total available for sale securities [1] 12,385 12,667
Moody Credit Rating, Baa3 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1]   4,986
Unrealized gain (loss) [1]   (797)
Fair value [1]   4,189
AMORTIZED COST [Abstract]    
Amortized cost [1]   4,986
FAIR VALUE [Abstract]    
Total available for sale securities [1]   4,189
Moody Credit Rating, Baa3 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1]   4,979
Unrealized gain (loss) [1]   (903)
Fair value [1]   4,076
AMORTIZED COST [Abstract]    
Amortized cost [1]   4,979
FAIR VALUE [Abstract]    
Total available for sale securities [1]   4,076
Moody Credit Rating, Baa2 [Member] | Key Corp Capital I [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1] 4,987  
Unrealized gain (loss) [1] (918)  
Fair value [1] 4,069  
AMORTIZED COST [Abstract]    
Amortized cost [1] 4,987  
FAIR VALUE [Abstract]    
Total available for sale securities [1] 4,069  
Moody Credit Rating, Baa2 [Member] | Huntington Capital Trust II SE [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1] 4,979  
Unrealized gain (loss) [1] (1,054)  
Fair value [1] 3,925  
AMORTIZED COST [Abstract]    
Amortized cost [1] 4,979  
FAIR VALUE [Abstract]    
Total available for sale securities [1] 3,925  
Moody Credit Rating, Baa2 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1]   4,965
Unrealized gain (loss) [1]   (563)
Fair value [1]   4,402
AMORTIZED COST [Abstract]    
Amortized cost [1]   4,965
FAIR VALUE [Abstract]    
Total available for sale securities [1]   4,402
Moody Credit Rating, Baa1 [Member] | PNC Capital Trust [Member] | Trust Preferred Securities [Member]    
Available-for-sale securities [Abstract]    
Amortized cost [1] 4,966  
Unrealized gain (loss) [1] (575)  
Fair value [1] 4,391  
AMORTIZED COST [Abstract]    
Amortized cost [1] 4,966  
FAIR VALUE [Abstract]    
Total available for sale securities [1] 4,391  
Debt Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 1,335,120 1,254,022
Gross unrealized gains 15,836 10,094
Gross unrealized (losses) (12,043) (8,943)
Fair value 1,338,913 1,255,173
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 548,201 545,994
LESS THAN 12 MONTHS, Unrealized (Losses) (8,073) (5,161)
OVER 12 MONTHS, Fair Value 92,172 103,329
OVER 12 MONTHS, Unrealized (Losses) (3,970) (3,782)
TOTAL, Fair Value 640,373 649,323
TOTAL, Unrealized (Losses) (12,043) (8,943)
Trust Preferred and Corporate Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 14,932 16,199
Gross unrealized gains 0 8
Gross unrealized (losses) (2,547) (2,263)
Fair value 12,385 13,944
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 12,385 12,667
OVER 12 MONTHS, Unrealized (Losses) (2,547) (2,263)
TOTAL, Fair Value 12,385 12,667
TOTAL, Unrealized (Losses) (2,547) (2,263)
Small Business Administration Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 83,704 54,493
Gross unrealized gains 1,202 1,563
Gross unrealized (losses) (235) 0
Fair value 84,671 56,056
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 28,992  
LESS THAN 12 MONTHS, Unrealized (Losses) (235)  
OVER 12 MONTHS, Fair Value 0  
OVER 12 MONTHS, Unrealized (Losses) 0  
TOTAL, Fair Value 28,992  
TOTAL, Unrealized (Losses) (235)  
Non-bank Qualified Obligations of States and Political Subdivisions [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 650,267 603,165
Gross unrealized gains 13,922 7,240
Gross unrealized (losses) (689) (1,815)
Fair value 663,500 608,590
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 20,924 97,006
LESS THAN 12 MONTHS, Unrealized (Losses) (203) (860)
OVER 12 MONTHS, Fair Value 34,033 42,583
OVER 12 MONTHS, Unrealized (Losses) (486) (955)
TOTAL, Fair Value 54,957 139,589
TOTAL, Unrealized (Losses) (689) (1,815)
Held-to-maturity Securities [Abstract]    
Amortized cost 320,260 259,627
Gross unrealized gains 3,789 2,122
Gross unrealized (losses) (890) (419)
Fair value 323,159 261,330
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 114,703 78,663
OVER 12 MONTHS, Fair Value 9,679 4,136
TOTAL, Fair Value 124,382 82,799
LESS THAN 12 MONTHS, Unrealized (Losses) (811) (365)
OVER 12 MONTHS, Unrealized (Losses) (79) (54)
TOTAL, Unrealized (Losses) (890) (419)
AMORTIZED COST [Abstract]    
Amortized cost 320,260 259,627
FAIR VALUE [Abstract]    
Total held to maturity securities 323,159 261,330
Mortgage-backed Securities [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 586,217 580,165
Gross unrealized gains 712 1,283
Gross unrealized (losses) (8,572) (4,865)
Fair value 578,357 576,583
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 498,285 448,988
LESS THAN 12 MONTHS, Unrealized (Losses) (7,635) (4,301)
OVER 12 MONTHS, Fair Value 45,754 48,079
OVER 12 MONTHS, Unrealized (Losses) (937) (564)
TOTAL, Fair Value 544,039 497,067
TOTAL, Unrealized (Losses) (8,572) (4,865)
Held-to-maturity Securities [Abstract]    
Amortized cost 70,376 66,577
Gross unrealized gains 0 0
Gross unrealized (losses) (1,152) (473)
Fair value 69,224 66,104
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 11,362 5,509
OVER 12 MONTHS, Fair Value 57,863 60,595
TOTAL, Fair Value 69,225 66,104
LESS THAN 12 MONTHS, Unrealized (Losses) (140) (43)
OVER 12 MONTHS, Unrealized (Losses) (1,012) (430)
TOTAL, Unrealized (Losses) (1,152) (473)
AMORTIZED COST [Abstract]    
Amortized cost 70,376 66,577
FAIR VALUE [Abstract]    
Total held to maturity securities 69,224 66,104
Obligations of States and Political Subdivisions [Member]    
Available-for-sale debt securities [Abstract]    
Amortized cost 0  
Gross unrealized gains 0  
Gross unrealized (losses) 0  
Fair value 0  
Held-to-maturity Securities [Abstract]    
Amortized cost 20,699 19,540
Gross unrealized gains 102 60
Gross unrealized (losses) (102) (187)
Fair value 20,699 19,413
Held-to-maturity Securities, Continuous Unrealized Loss Position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 3,763 5,528
OVER 12 MONTHS, Fair Value 8,560 7,964
TOTAL, Fair Value 12,323 13,492
LESS THAN 12 MONTHS, Unrealized (Losses) (8) (34)
OVER 12 MONTHS, Unrealized (Losses) (94) (153)
TOTAL, Unrealized (Losses) (102) (187)
AMORTIZED COST [Abstract]    
Amortized cost 20,699 19,540
FAIR VALUE [Abstract]    
Total held to maturity securities 20,699 19,413
Common Equities and Mutual Funds [Member]    
Available-for-sale equity securities [Abstract]    
Amortized cost 730 639
Gross unrealized gains 308 283
Gross unrealized (losses) (10) (8)
Fair value 1,028 914
Available-for-sale securities in a continuous unrealized loss position [Abstract]    
LESS THAN 12 MONTHS, Fair Value 0 0
LESS THAN 12 MONTHS, Unrealized (Losses) 0 0
OVER 12 MONTHS, Fair Value 119 121
OVER 12 MONTHS, Unrealized (Losses) (10) (8)
TOTAL, Fair Value 119 121
TOTAL, Unrealized (Losses) $ (10) $ (8)
[1] Trust preferred securities are single-issuance. There are no known deferrals, defaults or excess subordination.
v3.3.1.900
COMMITMENTS AND CONTINGENCIES (Details)
$ in Millions
 3 Months Ended
Dec. 31, 2015
USD ($)
Commitment
ClassAction
Court
Sep. 30, 2015
USD ($)
Commitment
COMMITMENTS AND CONTINGENCIES [Abstract]    
Unfunded loan commitments $ 132.3 $ 158.3
Number of commitments | Commitment 1 2
Commitment to purchase securities, available for sale $ 7.9  
Number of commitment to purchase securities, held to maturity | Commitment 3  
Purchase commitment amount, held to maturity   $ 3.0
Commitment to purchase securities $ 4.3  
Loss Contingencies [Line Items]    
Number of class action litigations | ClassAction 4  
Number of federal district courts | Court 3  
Inter National Bank [Member]    
Loss Contingencies [Line Items]    
Amount of shortfall in depository account $ 10.5  
Springbok Services Inc. [Member]    
Loss Contingencies [Line Items]    
Estimate of possible loss 1.5  
Range of reasonably possible loss, minimum 0.0  
Range of reasonably possible loss, maximum $ 0.3  
UniRush, LLC [Member]    
Loss Contingencies [Line Items]    
Period of inability of customers of prepaid card product to access product 14 days  
v3.3.1.900
STOCK OPTION PLAN (Details) - USD ($)
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Number of Shares [Roll Forward]    
Options outstanding, beginning of period (in shares) 189,088  
Granted (in shares) 0  
Exercised (in shares) (6,111)  
Forfeited or expired (in shares) 0  
Options outstanding, end of period (in shares) 182,977 189,088
Options exercisable, end of period (in shares) 182,977  
Weighted Average Exercise Price [Roll Forward]    
Options outstanding, beginning of period (in dollars per share) $ 25.74  
Granted (in dollars per share) 0  
Exercised (in dollars per share) 28.90  
Forfeited or expired (in dollars per share) 0  
Options outstanding, end of period (in dollars per share) 25.64 $ 25.74
Options exercisable, end of period (in dollars per share) $ 25.64  
Weighted Average Remaining Contractual Term (Yrs) [Abstract]    
Options outstanding 2 years 11 months 5 days 3 years 1 month 28 days
Options exercisable 2 years 11 months 5 days  
Aggregate Intrinsic Value [Abstract]    
Options outstanding, beginning of period $ 3,027,000  
Granted 0  
Exercised 99,000  
Forfeited or expired 0  
Options outstanding, end of period 3,701,000 $ 3,027,000
Options exercisable, end of period $ 3,701,000  
Nonvested Shares Outstanding, Number of Shares [Roll Forward]    
Nonvested shares outstanding, beginning of period (in shares) 44,002  
Granted (in shares) 1,000  
Vested (in shares) (15,208)  
Forfeited or expired (in shares) (313)  
Nonvested shares outstanding, end of period (in shares) 29,481 44,002
Nonvested Shares Outstanding, Weighted Average Fair Value at Grant [Roll Forward]    
Nonvested shares outstanding, beginning of period (in dollars per share) $ 40.80  
Granted (in dollars per share) 45.00  
Vested (in dollars per share) 41.54  
Forfeited or expired (in dollars per share) 41.77  
Nonvested shares outstanding, end of period (in dollars per share) $ 40.56 $ 40.80
Stock based compensation expense not yet recognized in income $ 377,063  
Weighted average remaining period for unrecognized stock based compensation 1 year 9 months 29 days  
v3.3.1.900
SEGMENT INFORMATION (Details)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
USD ($)
Segment
Dec. 31, 2014
USD ($)
Sep. 30, 2015
USD ($)
Segment Reporting Information [Line Items]      
Number of reportable segments | Segment 3    
Segment data [Abstract]      
Interest income $ 18,275 $ 14,232  
Interest expense 720 661  
Net interest income (expense) 17,555 13,571  
Provision (recovery) for loan losses 786 48  
Non-interest income 16,834 12,674  
Non-interest expense 30,008 22,413  
Income (loss) before tax 3,595 3,784  
Total assets 2,960,234 2,108,063 $ 2,529,705
Total deposits 2,569,043 1,788,879 $ 1,657,534
Reportable Segments [Member] | Banking [Member]      
Segment data [Abstract]      
Interest income 8,851 6,941  
Interest expense 253 279  
Net interest income (expense) 8,598 6,662  
Provision (recovery) for loan losses 706 48  
Non-interest income 1,056 579  
Non-interest expense 5,428 5,263  
Income (loss) before tax 3,520 1,930  
Total assets 735,222 599,027  
Total deposits 227,260 234,765  
Reportable Segments [Member] | Payments [Member]      
Segment data [Abstract]      
Interest income 1,964 1,567  
Interest expense 40 45  
Net interest income (expense) 1,924 1,522  
Provision (recovery) for loan losses 80 0  
Non-interest income 15,352 13,052  
Non-interest expense 16,017 11,673  
Income (loss) before tax 1,179 2,901  
Total assets 51,359 41,096  
Total deposits 2,341,783 1,554,114  
Reportable Segments [Member] | Corporate Services/Other [Member]      
Segment data [Abstract]      
Interest income 7,460 5,724  
Interest expense 427 337  
Net interest income (expense) 7,033 5,387  
Provision (recovery) for loan losses 0 0  
Non-interest income 426 (957)  
Non-interest expense 8,563 5,477  
Income (loss) before tax (1,104) (1,047)  
Total assets 2,173,653 1,467,940  
Total deposits $ 0 $ 0  
v3.3.1.900
FAIR VALUE MEASUREMENTS, Assets Measured at Fair Value on Recurring and Non-recurring Basis (Details) - USD ($)
$ in Thousands
Dec. 31, 2015
Sep. 30, 2015
Available-for-sale Securities [Abstract]    
Total debt securities $ 578,357 $ 576,583
Total available for sale securities 1,339,941 1,256,087
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 413,082 346,847
Level 1 [Member]    
Available-for-sale Securities [Abstract]    
Total available for sale securities 1,028 914
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Consumer Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 1 [Member] | Commercial Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member]    
Available-for-sale Securities [Abstract]    
Total available for sale securities 1,338,913 1,255,173
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 413,082 346,847
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Consumer Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 2 [Member] | Commercial Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Level 3 [Member]    
Available-for-sale Securities [Abstract]    
Total available for sale securities 0 0
Held-to-maturity Securities [Abstract]    
Total held to maturity securities 0 0
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 738,802 707,774
Level 3 [Member] | Total Impaired Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 1,881 2,543
Level 3 [Member] | One to Four Family Residential Mortgage Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 135,612 121,385
Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 328,503 314,372
Level 3 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 31,338 40,003
Level 3 [Member] | Consumer Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 34,590 33,504
Level 3 [Member] | Commercial Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 27,985 23,245
Recurring [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 12,385 13,944
Small business administration securities 84,671 56,056
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 663,500 608,590
Mortgage-backed securities 578,357 576,583
Total debt securities 1,338,913 1,255,173
Common equities and mutual funds 1,028 914
Total available for sale securities 1,339,941 1,256,087
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 20,699 19,413
Non-bank qualified obligations of states and political subdivisions 323,159 261,330
Mortgage-backed securities 69,224 66,104
Total debt securities 413,082 346,847
Common equities and mutual funds 0 0
Total held to maturity securities 413,082 346,847
Recurring [Member] | Level 1 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 1,028 914
Total available for sale securities 1,028 914
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total held to maturity securities 0 0
Recurring [Member] | Level 2 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 12,385 13,944
Small business administration securities 84,671 56,056
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 663,500 608,590
Mortgage-backed securities 578,357 576,583
Total debt securities 1,338,913 1,255,173
Common equities and mutual funds 0 0
Total available for sale securities 1,338,913 1,255,173
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 20,699 19,413
Non-bank qualified obligations of states and political subdivisions 323,159 261,330
Mortgage-backed securities 69,224 66,104
Total debt securities 413,082 346,847
Common equities and mutual funds 0 0
Total held to maturity securities 413,082 346,847
Recurring [Member] | Level 3 [Member]    
Available-for-sale Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total available for sale securities 0 0
Held-to-maturity Securities [Abstract]    
Trust preferred and corporate securities 0 0
Small business administration securities 0 0
Obligations of states and political subdivisions 0 0
Non-bank qualified obligations of states and political subdivisions 0 0
Mortgage-backed securities 0 0
Total debt securities 0 0
Common equities and mutual funds 0 0
Total held to maturity securities 0 0
Nonrecurring [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 1,881 2,543
Nonrecurring [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 663 663
Nonrecurring [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 1,218 1,880
Nonrecurring [Member] | Level 1 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 1 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 1 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 2 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 2 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 2 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 0 0
Nonrecurring [Member] | Level 3 [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 1,881 2,543
Nonrecurring [Member] | Level 3 [Member] | Commercial and Multi-family Real Estate Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value 663 663
Nonrecurring [Member] | Level 3 [Member] | Agricultural Operating Loans [Member]    
Fair value of assets measured on non-recurring basis [Abstract]    
Fair value $ 1,218 $ 1,880
v3.3.1.900
FAIR VALUE MEASUREMENTS, Quantitative Information (Details) - USD ($)
$ in Thousands
 3 Months Ended 12 Months Ended
Dec. 31, 2015
Sep. 30, 2015
Minimum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 4.00% 4.00%
Maximum [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Range of estimated selling cost 10.00% 10.00%
Level 3 [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 738,802 $ 707,774
Impaired Loans, Net [Member] | Level 3 [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Fair value $ 1,881 $ 2,543
Impaired Loans, Net [Member] | Level 3 [Member] | Market Approach Valuation Technique [Member]    
Fair Value Inputs, Assets, Quantitative Information [Line Items]    
Valuation techniques [1] Appraised values Appraised values
[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%.
v3.3.1.900
FAIR VALUE MEASUREMENTS, Balance Sheet Grouping (Details) - USD ($)
$ in Thousands
Dec. 31, 2015
Sep. 30, 2015
Financial assets    
Securities available for sale $ 1,339,941 $ 1,256,087
Securities held to maturity 413,082 346,847
Level 1 [Member]    
Financial assets    
Cash and cash equivalents 293,147 27,658
Securities available for sale 1,028 914
Securities held to maturity 0 0
Total securities 1,028 914
Loans receivable: [Abstract]    
Total loans receivable 0 0
Federal Home Loan Bank stock 0 0
Accrued interest receivable 16,306 13,352
Financial liabilities    
Noninterest bearing demand deposits 2,360,403 1,369,672
Interest bearing demand deposits, savings, and money markets 134,661 115,204
Certificates of deposit 0 0
Total deposits 2,495,064 1,484,876
Advances from Federal Home Loan Bank 0 0
Federal fund purchased   0
Securities sold under agreements to repurchase 0 0
Subordinated debentures 0 0
Accrued interest payable 229 272
Level 2 [Member]    
Financial assets    
Cash and cash equivalents 0 0
Securities available for sale 1,338,913 1,255,173
Securities held to maturity 413,082 346,847
Total securities 1,751,995 1,602,020
Loans receivable: [Abstract]    
Total loans receivable 0 0
Federal Home Loan Bank stock 4,810 24,410
Accrued interest receivable 0 0
Financial liabilities    
Noninterest bearing demand deposits 0 0
Interest bearing demand deposits, savings, and money markets 0 0
Certificates of deposit 73,408 91,304
Total deposits 73,408 91,304
Advances from Federal Home Loan Bank 58,228 8,630
Federal fund purchased 0 540,000
Securities sold under agreements to repurchase 2,007 4,007
Subordinated debentures 10,414 10,416
Accrued interest payable 0 0
Level 3 [Member]    
Financial assets    
Cash and cash equivalents 0 0
Securities available for sale 0 0
Securities held to maturity 0 0
Total securities 0 0
Loans receivable: [Abstract]    
Total loans receivable 738,802 707,774
Federal Home Loan Bank stock 0 0
Accrued interest receivable 0 0
Financial liabilities    
Noninterest bearing demand deposits 0 0
Interest bearing demand deposits, savings, and money markets 0 0
Certificates of deposit 0 0
Total deposits 0 0
Advances from Federal Home Loan Bank 0 0
Federal fund purchased   0
Securities sold under agreements to repurchase 0 0
Subordinated debentures 0 0
Accrued interest payable 0 0
Carrying Amount [Member]    
Financial assets    
Cash and cash equivalents 293,147 27,658
Securities available for sale 1,339,941 1,256,087
Securities held to maturity 411,335 345,744
Total securities 1,751,276 1,601,831
Loans receivable: [Abstract]    
Total loans receivable 744,581 713,087
Federal Home Loan Bank stock 4,810 24,410
Accrued interest receivable 16,306 13,352
Financial liabilities    
Noninterest bearing demand deposits 2,360,403 1,449,101
Interest bearing demand deposits, savings, and money markets 134,661 117,262
Certificates of deposit 73,979 91,171
Total deposits 2,569,043 1,657,534
Advances from Federal Home Loan Bank 57,000 7,000
Federal fund purchased 0 540,000
Securities sold under agreements to repurchase 2,007 4,007
Subordinated debentures 10,310 10,310
Accrued interest payable 229 272
Estimated Fair Value [Member]    
Financial assets    
Cash and cash equivalents 293,147 27,658
Securities available for sale 1,339,941 1,256,087
Securities held to maturity 413,082 346,847
Total securities 1,753,023 1,602,934
Loans receivable: [Abstract]    
Total loans receivable 738,802 707,774
Federal Home Loan Bank stock 4,810 24,410
Accrued interest receivable 16,306 13,352
Financial liabilities    
Noninterest bearing demand deposits 2,360,403 1,369,672
Interest bearing demand deposits, savings, and money markets 134,661 115,204
Certificates of deposit 73,408 91,304
Total deposits 2,568,472 1,576,180
Advances from Federal Home Loan Bank 58,228 8,630
Federal fund purchased 0 540,000
Securities sold under agreements to repurchase 2,007 4,007
Subordinated debentures 10,414 10,416
Accrued interest payable 229 272
One to Four Family Residential Mortgage Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
One to Four Family Residential Mortgage Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
One to Four Family Residential Mortgage Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 135,612 121,385
One to Four Family Residential Mortgage Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 134,850 125,021
One to Four Family Residential Mortgage Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable 135,612 121,385
Commercial and Multi-family Real Estate Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Commercial and Multi-family Real Estate Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Commercial and Multi-family Real Estate Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 328,503 314,372
Commercial and Multi-family Real Estate Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 322,125 310,199
Commercial and Multi-family Real Estate Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable 328,503 314,372
Agricultural Real Estate Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Agricultural Real Estate Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Agricultural Real Estate Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 67,673 66,682
Agricultural Real Estate Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 64,181 64,316
Agricultural Real Estate Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable 67,673 66,682
Consumer Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Consumer Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Consumer Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 34,590 33,504
Consumer Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 34,868 33,527
Consumer Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable 34,590 33,504
Commercial Operating Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Commercial Operating Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Commercial Operating Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 27,985 23,245
Commercial Operating Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 37,505 29,893
Commercial Operating Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable 27,985 23,245
Agricultural Operating Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Agricultural Operating Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Agricultural Operating Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 31,338 40,003
Agricultural Operating Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 40,412 43,626
Agricultural Operating Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable 31,338 40,003
Premium Finance Loans [Member] | Level 1 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Premium Finance Loans [Member] | Level 2 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 0 0
Premium Finance Loans [Member] | Level 3 [Member]    
Loans receivable: [Abstract]    
Total loans receivable 113,101 108,583
Premium Finance Loans [Member] | Carrying Amount [Member]    
Loans receivable: [Abstract]    
Total loans receivable 110,640 106,505
Premium Finance Loans [Member] | Estimated Fair Value [Member]    
Loans receivable: [Abstract]    
Total loans receivable $ 113,101 $ 108,583
v3.3.1.900
GOODWILL AND INTANGIBLE ASSETS (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Dec. 31, 2015
Sep. 08, 2015
Dec. 02, 2014
Finite-Lived Intangible Assets [Line Items]          
Goodwill $ 36,928 $ 0 $ 36,928    
Impairment of intangible assets 0 0      
Amortizable intangible assets [Abstract]          
Balance, beginning of period 36,928 0      
Acquisitions during the period 0 11,578      
Write-offs during the period 0 0      
Balance, end of period 36,928 $ 11,578      
Intangible Assets [Roll Forward]          
Balance, beginning of period 33,577        
Acquisitions during the period 54        
Amortization during the period (1,213)        
Write-offs during the period 0        
Balance, end of period 32,418        
AFS/IBEX Financial Services Inc [Member]          
Finite-Lived Intangible Assets [Line Items]          
Goodwill         $ 11,600
Refund Advantage Financial Services Inc [Member]          
Finite-Lived Intangible Assets [Line Items]          
Goodwill       $ 25,400  
Trademark [Member]          
Intangible Assets [Roll Forward]          
Balance, beginning of period 5,439        
Acquisitions during the period 0        
Amortization during the period (72)        
Write-offs during the period 0        
Balance, end of period $ 5,367        
Trademark [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     540    
Book Amortization Period 15 years        
Method Straight Line        
Trademark [Member] | Refund Advantage Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     4,950    
Book Amortization Period 15 years        
Method Straight Line        
Non-Compete [Member]          
Intangible Assets [Roll Forward]          
Balance, beginning of period $ 227        
Acquisitions during the period 0        
Amortization during the period (25)        
Write-offs during the period 0        
Balance, end of period $ 202        
Non-Compete [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     260    
Book Amortization Period 3 years        
Method Straight Line        
Non-Compete [Member] | Refund Advantage Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     40    
Book Amortization Period 3 years        
Method Straight Line        
Customer Relationships [Member]          
Intangible Assets [Roll Forward]          
Balance, beginning of period $ 24,811        
Acquisitions during the period 0        
Amortization during the period (1,064)        
Write-offs during the period 0        
Balance, end of period $ 23,747        
Customer Relationships [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     7,240    
Book Amortization Period 30 years        
Method Accelerated        
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     18,800    
Method Accelerated        
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Minimum [Member]          
Amortizable intangible assets [Abstract]          
Book Amortization Period 12 years        
Customer Relationships [Member] | Refund Advantage Financial Services Inc [Member] | Maximum [Member]          
Amortizable intangible assets [Abstract]          
Book Amortization Period 20 years        
Other [Member]          
Intangible Assets [Roll Forward]          
Balance, beginning of period $ 3,100        
Acquisitions during the period 54        
Amortization during the period (52)        
Write-offs during the period 0        
Balance, end of period $ 3,102        
Other [Member] | AFS/IBEX Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     173    
Method Straight Line        
Other [Member] | Refund Advantage Financial Services Inc [Member]          
Amortizable intangible assets [Abstract]          
Amount     $ 329    
Method Straight Line        
v3.3.1.900
INCOME TAXES (Details) - USD ($)
$ in Thousands
 3 Months Ended
Dec. 31, 2015
Dec. 31, 2014
Effective Income Tax Rate Reconciliation, Amount [Abstract]    
Income tax expense at federal tax rate $ 1,258 $ 1,324
Increase (decrease) resulting from [Abstract]    
State income taxes net of federal benefit 167 119
Nontaxable buildup in cash surrender value (131) (100)
Incentive stock option expense (18) 0
Tax exempt income (1,790) (1,068)
Nondeductible expenses 39 12
Other, net 12 (98)
Income tax expense $ (463) $ 189